US-based Kemper has signed an agreement to acquire Alliance United Group and its wholly-owned subsidiaries, for around $70m.
Established in 2004, Alliance United distributes automotive insurance exclusively through a network of around 900 producers across nearly 2,000 locations in the US.
Kemper chairman, president and CEO Donald Southwell said: "We are pleased at the prospect of Alliance United joining the Kemper family of companies.
"This acquisition is a great addition to Kemper’s strong personal lines insurance businesses and increases our capabilities to serve the non-standard private passenger auto market."
The acquisition is said to expand Kemper’s auto insurance business in California, and the company is planning to contribute around $75m of capital to support the acquired business.
According to Kemper, Alliance United’s direct written premiums will reach around $300m in 2014.
Subject to approvals by insurance regulators and the satisfaction of other customary closing conditions, the transaction is expected to be completed in the first half of 2015.
Foley & Lardner is acting as legal advisor for Kemper, while Sherman & Company is serving as financial advisor to Alliance United and Sidley Austin as legal advisor.
Kemper provides an array of products to the individual and business markets, including auto insurance, homeowner insurance, renters insurance, life insurance and health insurance.
Image: Kemper has agreed to acquire Alliance United Group and its wholly-owned subsidiaries. Photo: courtesy of Naypong/ FreeDigitalPhotos.net.