The transaction is expected to further expand Kemper’s capabilities in speciality auto segment and strengthen Hispanic market
Kemper has agreed to acquire American Access Casualty Company and its captive insurance agency Newins Insurance, along with its subsidiaries, (together known as ACC) for a total of $370m in cash.
Chartered in 1999, American Access is a speciality line auto insurance carrier, operating as American Access Casualty Company, and agency operating as Newins Insurance Agency.
Newins Insurance Agency began operations in 1975, and the combined entities have been serving their insureds for more than two decades, focused on large urban areas.
AAC is engaged in providing speciality private passenger auto insurance in Arizona, Illinois, Indiana, Nevada and Texas.
The company wrote more than $370m of direct premiums in 2019, through a network of nearly 500 independent agents and more than 110 captive agents.
The transaction is expected to affect Kemper’s earnings per share (EPS) and return on tangible common equity in the first year, except value of business acquired, and result in high single-digit EPS accretion in the second year.
The transaction is expected to close in the first quarter of 2021, subject to regulatory approval and certain other customary closing conditions.
Sidley Austin served as legal counsel for Kemper for the transaction, while Piper Sandler & Co as a financial advisor to AAC and Winston & Strawn served as a legal counsel for AAC.
Kemper P&C division president Duane Sanders said: “AAC is a great addition to Kemper’s specialty auto franchise and aligns with our strategic intent to serve growing niche markets with affordable and easy-to-use products
“Their distribution capabilities, including strong customer and agent relationships, will expand our geographic footprint and when combined with our financial resources will create increased reach and incremental scale. We look forward to having AAC join the Kemper team.”
Kemper is a group of specialised insurers, providing easy-to-use personalised insurance solutions, to individuals, families and businesses through its Auto, Personal Insurance, Life and Health brands, with assets valuing around $14.1bn.
The company services more than 6.3 million policies, through its more than 30,000 agents and brokers, and 9,300 associates dedicated to address the needs of customers.