The lines of business included in the transaction are Kemper's middle market offerings, such as workers' compensation, package, auto, and umbrella. It also includes Kemper's marine and small business accounts, professional liability business for architects and engineers, and the Ohio-based GreatLand operation. The transaction does not include business underwritten by Kemper's Eagle insurance unit, which provides specialized workers' compensation insurance for maritime and other high hazard industries.
The St. Paul is not assuming any liabilities of Kemper or its affiliates.
"We believe this transaction will be beneficial to our agents and our policyholders," said Kemper Chairman and CEO David B. Mathis. "Given that we have decided to exit the underwriting business, this will provide an opportunity for a smooth transition when these existing policies come up for renewal."
Kemper will continue through its Kemper Services operation to be a premier provider of claim, medical management and safety engineering services to all market segments.
"The St. Paul is a major provider of commercial insurance, and the incremental business we expect to write as a result of this transaction complements our current book and deepens our relationship with our distribution partners," said Marita Zuraitis, chief executive officer-Commercial Lines for The St. Paul.
Mike Miller, chief executive officer-Specialty Commercial for The St. Paul, added, "A number of key Kemper professionals will be joining the St. Paul and will work with us to ensure a smooth transition for customers as well as agents and brokers."
The St. Paul Companies is headquartered in Saint Paul, Minn., and provides commercial property-liability insurance and asset management services. The St. Paul reported 2002 revenue from continuing operations of $8.9 billion and total assets of $39.9 billion, and ranks No. 207 on the Fortune 500 list of largest U.S. companies. In 2003, it marks its 150th anniversary. For additional information, visit The St. Paul's web site, www.stpaul.com.
The Kemper Insurance Companies is a premier provider of property casualty insurance services headquartered in Long Grove, Ill.