Kemper Corporation (NYSE: KMPR) has agreed to sell Reserve National Insurance Company and its subsidiaries, which are predominantly focused on accident and health insurance, to Medical Mutual of Ohio for $90 million. The transaction is subject to regulatory approval and other closing conditions with an expected closing in late 2022 or early 2023.
Reserve National is based in Oklahoma City, and sells accident and health insurance products in both the individual and group markets with written premiums of over $170 million in 2021. Founded in 1934 and headquartered in Cleveland, Medical Mutual is one of Ohio’s oldest and largest health insurance companies and offers health, life, disability, dental, vision and indemnity plans to Ohio residents.
“This transaction aligns with Kemper’s strategic intent and is a great fit for Medical Mutual of Ohio,” said Joseph P. Lacher, Jr., Kemper’s President, CEO and Chairman. “It will allow Kemper to increase our focus and invest additional resources in the P&C and life insurance businesses that are providing sustainable, competitive advantages to better deliver value to all our stakeholders.” Kemper expects to record a gain upon completion of the transaction.
Tom Dewey, Medical Mutual Executive Vice President, People and Strategy added: “This is an opportunity for Medical Mutual to strengthen our market position, as this transaction allows us to immediately expand our current product offerings. And while Ohio is our home, we also look at this as an opportunity to strategically expand our geographic footprint as a framework for future growth.”
Kemper management will be available to answer questions related to the transaction during the Company’s second quarter earnings conference call on Monday, August 1 at 5:00 p.m. Eastern Time. Details can be found in the investor section of Kemper.com.