Unitrin Inc
Encyclopedia
Kemper Corporation (formerly known as Unitrin) is one of the nation's leading financial services providers. The Kemper family of companies specializes in property and casualty insurance, life and health insurance products for individuals, families, and small businesses.
's conglomerate Teledyne
. Singleton hoped that the spin-off of Unitrin would duplicate the successful results of the Argonaut Group, originally a worker's compensation insurance provider, spun off in 1986. Argonaut's original $20 per share stock appreciated 240 percent by 1990.
Argonaut Group is now known as Argo Group International Holdings . Singleton remained Chairman of Unitrin after it was spun off to shareholders at $31.25 per share, trading on NASDAQ
. Unitrin divided its business into three major categories: life and health insurance; property and casualty insurance; and consumer finance, which covered a variety of services including automobile and industrial loans.
During the second part of 1994, Unitrin was targeted for a hostile takeover because of its increasing success. American General Corp., an insurance carrier headquartered in Houston, sent a S2.6 billion takeover bid. On June 26, Unitrin rejected the $50.38 per share offer and adopted a poison pill
defense by initiating a stock buyback plan of ten million shares or 19% of its stock. American General then took Unitrin to court. A Delaware Chancery Court
judge agreed and issued a restraining order
against Unitrin's proposed stock buyback until September 27, 1994. Unitrin continued to resist the merger offer, and, on December 13, 1994, the Delaware Supreme Court overturned the lower court's injunction, allowing Unitrin to continue buying back its stock. (For details see Unitrin, Inc. v. American General Corp.
) As 1994 ended, Unitrin's total revenues rose slightly to $1.37 billion, just over the previous year's $1.36 billion. However, Unitrin's net income rose from $95 million in 1993 to a shocking $148 million for 1994 fiscal year. As Unitrin entered its fifth year as an independent company, it continued buying back its stock to keep American General and, possibly, other suitors at bay. By the end of 1995, Unitrin had bought back 13.5 million shares at a cost of $661 million. Unitrin's poison pill defense worked: American General's takeover bid expired on February 7, 1995 and was not renewed.
Eventually, Unitrin took the Kemper Corporation name. Starting August 25, 2011, Unitrin officially began operations as Kemper Corporation, with trading on the New York Stock Exchange under the KMPR ticker symbol.
Charter Indemnity Company
Financial Indemnity Company
Kemper Independence Insurance
Merastar Insurance Company
Mutual Savings Fire Insurance Company
National Merit Insurance Company
Response Indemnity Company of California
Response Indemnity Company of New York
Response Insurance Company
Response Worldwide Direct Auto
Response Worldwide Insurance Company
Trinity Universal Insurance Company
Union National Fire Insurance Company
United Casualty Insurance Company of America
Unitrin Advantage Insurance Company
Unitrin Auto and Home Insurance Company
Unitrin Casualty Insurance Company of America
Unitrin Advantage Insurance Company
Unitrin Auto & Home Insurance Company
Unitrin Direct Insurance Company
Unitrin Direct Property & Casualty Company
Unitrin Preferred Insurance Company
Unitrin Safeguard Insurance Company
Valley Insurance Company
Valley Property & Casualty Insurance Company
Warner Insurance Company
Reserve National Insurance Company
The Reliable Life Insurance Company
Union National Life Insurance Company
United Insurance Company of America
Capitol County Mutual Fire Insurance Company
Old Reliable Casualty Company
Unitrin County Mutual Insurance Company
History
Unitrin, Inc. was founded in April 1990 when it was spun off from Henry SingletonHenry Singleton
Henry Earl Singleton was an electrical engineer, business executive, and rancher/land owner. Singleton made significant contributions to aircraft inertial guidance and was elected to the National Academy of Engineering. He co-founded Teledyne, Inc., one of Americas most successful conglomerates...
's conglomerate Teledyne
Teledyne
Teledyne Technologies Incorporated is an industrial conglomerate primarily based in the United States but with global operations. It was founded in 1960, as Teledyne, Inc., by Henry Singleton and George Kozmetsky....
. Singleton hoped that the spin-off of Unitrin would duplicate the successful results of the Argonaut Group, originally a worker's compensation insurance provider, spun off in 1986. Argonaut's original $20 per share stock appreciated 240 percent by 1990.
Argonaut Group is now known as Argo Group International Holdings . Singleton remained Chairman of Unitrin after it was spun off to shareholders at $31.25 per share, trading on NASDAQ
NASDAQ
The NASDAQ Stock Market, also known as the NASDAQ, is an American stock exchange. "NASDAQ" originally stood for "National Association of Securities Dealers Automated Quotations". It is the second-largest stock exchange by market capitalization in the world, after the New York Stock Exchange. As of...
. Unitrin divided its business into three major categories: life and health insurance; property and casualty insurance; and consumer finance, which covered a variety of services including automobile and industrial loans.
During the second part of 1994, Unitrin was targeted for a hostile takeover because of its increasing success. American General Corp., an insurance carrier headquartered in Houston, sent a S2.6 billion takeover bid. On June 26, Unitrin rejected the $50.38 per share offer and adopted a poison pill
Poison pill
A shareholder rights plan, colloquially known as a "poison pill", or simply "the pill" is a type of defensive tactic used by a corporation's board of directors against a takeover...
defense by initiating a stock buyback plan of ten million shares or 19% of its stock. American General then took Unitrin to court. A Delaware Chancery Court
Chancery Court
The Chancery Court of York is an ecclesiastical court for the Province of York of the Church of England.The presiding officer, the Official Principal and Auditor, has been the same person as the Dean of the Arches since the nineteenth century . The Court comprises the Auditor, two clergy and two...
judge agreed and issued a restraining order
Restraining order
A restraining order or order of protection is a form of legal injunction that requires a party to do, or to refrain from doing, certain acts. A party that refuses to comply with an order faces criminal or civil penalties and may have to pay damages or accept sanctions...
against Unitrin's proposed stock buyback until September 27, 1994. Unitrin continued to resist the merger offer, and, on December 13, 1994, the Delaware Supreme Court overturned the lower court's injunction, allowing Unitrin to continue buying back its stock. (For details see Unitrin, Inc. v. American General Corp.
Unitrin, Inc. v. American General Corp.
Unitrin, Inc. v. American General Corp., 651 A.2d 1361 is the leading case on a board of directors' ability to use defensive measures, such as poison pills or buybacks, to prevent a hostile takeover...
) As 1994 ended, Unitrin's total revenues rose slightly to $1.37 billion, just over the previous year's $1.36 billion. However, Unitrin's net income rose from $95 million in 1993 to a shocking $148 million for 1994 fiscal year. As Unitrin entered its fifth year as an independent company, it continued buying back its stock to keep American General and, possibly, other suitors at bay. By the end of 1995, Unitrin had bought back 13.5 million shares at a cost of $661 million. Unitrin's poison pill defense worked: American General's takeover bid expired on February 7, 1995 and was not renewed.
Eventually, Unitrin took the Kemper Corporation name. Starting August 25, 2011, Unitrin officially began operations as Kemper Corporation, with trading on the New York Stock Exchange under the KMPR ticker symbol.
Class-action lawsuit
Unitrin agreed to settle a class-action lawsuit and repay $27 million to clients overcharged for life insurance because they were African-American. The settlement came after two years of investigation and negotiations among the companies, insurance regulators and attorneys representing policyholders. The money went to about 467,000 people who held policies sold from the Depression era through 1970. Insurance companies during that time often charged African-American customers more than caucasian customers on the grounds that they were perceived to have a shorter life span and were a higher insurance risk.Property and Casualty Insurance
Alpha Property & Casualty Insurance CompanyCharter Indemnity Company
Financial Indemnity Company
Kemper Independence Insurance
Merastar Insurance Company
Mutual Savings Fire Insurance Company
National Merit Insurance Company
Response Indemnity Company of California
Response Indemnity Company of New York
Response Insurance Company
Response Worldwide Direct Auto
Response Worldwide Insurance Company
Trinity Universal Insurance Company
Union National Fire Insurance Company
United Casualty Insurance Company of America
Unitrin Advantage Insurance Company
Unitrin Auto and Home Insurance Company
Unitrin Casualty Insurance Company of America
Unitrin Advantage Insurance Company
Unitrin Auto & Home Insurance Company
Unitrin Direct Insurance Company
Unitrin Direct Property & Casualty Company
Unitrin Preferred Insurance Company
Unitrin Safeguard Insurance Company
Valley Insurance Company
Valley Property & Casualty Insurance Company
Warner Insurance Company
Life and Health Insurance
Mutual Savings Life Insurance CompanyReserve National Insurance Company
The Reliable Life Insurance Company
Union National Life Insurance Company
United Insurance Company of America
Affiliated Insurance Companies
Fireside BankCapitol County Mutual Fire Insurance Company
Old Reliable Casualty Company
Unitrin County Mutual Insurance Company