Alliance United to be bought by Kemper Corporation in California Auto Insurance Push


Kemper Corporation, which was initially founded in April 1990, is one of America’s major insurance firms that also provide consumer finance. Kemper Corporation which was previously known by the name Unitrin specializes and focuses in, life and health insurance, property and casualty insurance products for people including small businesses and families.

Recently, they have agreed to buy the Alliance United Group who call themselves the “Champion of California’s independent brokers”, in order to add auto coverage sales in the state of California, which is the biggest state in the U.S. by population.

Alliance United was founded in the year 2004 and is a private company that deals with the distribution of automotive insurance entirely through a huge network of around 900 producers across almost 2,000 destinations. Alliance United has had a good rapport and long-standing liaisons with these brokers, a tie that places Alliance United for persisting expansion in the auto insurance market of the state of California.

Kemper Corporation will be paying a cash amount of around $70 million. The insurance corporation based in Chicago said today in a report shared out by Business Wire. The buyer is initially planning to invest about $75 million in order to support and maintain the business after the finalization of the deal. The completion of the deal is expected to happen in the beginning of the year 2015.

The Chief Executive Officer of the Kemper Corporation, Donald G. Southwell is working to strengthen a private-passenger operation that underwent a turn down in premium revenue during the current year. According to Kemper Corporation, United Alliance is one of the five best insurers in the non-standard auto market of the state of California which basically covers all the risky drivers.

Talking about the finalization and the benefits of this deal, Donald G. Southwell assured that he is pleased with the deal they are about to make with the Alliance United regarding it joining the Kemper family. He believes that it will be a profitable addition to their group of companies.

At 10:14 a.m. in the city of New York, Kemper Corporation progressed 1.2 percent to $36.12, narrowing its refusal for the year 2014 by 12 percent.

Kemper Corporation’s legal adviser is Foley & Lardner LLP. Banker for Alliance United is Sherman & Co., while the company is seeking legal advice from Sidley Austin LLP.