Kemper Corp. (NYSE: KMPR) has agreed to sell Reserve National Insurance Co. and its subsidiaries to Medical Mutual of Ohio in a $90 million transaction expected to close later this year or early 2023, pending regulatory approval and other closing conditions.
Reserve National, based in Oklahoma City, sells accident and health insurance products in the individual and group markets with written premiums totaling more than $170 million in 2021, according to A press release.
The agreement “aligns with Kemper’s strategic intent,” Kemper Chairman and CEO Joseph P. Lacher said in the release, adding that it is “a perfect fit for Medical Mutual of Ohio.”
Kemper, a family of insurance-focused companies, has about $14 billion in assets. It expects to record a gain on completion of the transaction, according to the statement.
The transaction “will allow Kemper to increase our focus and invest additional resources in the P&C and life insurance businesses that provide sustainable competitive advantages to better deliver value to all of our stakeholders,” Lacher said in a statement. a press release provided.
The transaction is an opportunity for Medical Mutual – which provides health, life, disability, dental, vision and indemnity insurance plans to Ohio residents – to strengthen its market position as it “allows us to immediately expand our current product offering,” said Tom Dewey, executive vice president of human resources and strategy for Medical Mutual, in the statement.
“And although Ohio is our home, we view this as an opportunity to strategically expand our geographic footprint as a setting for future growth,” Dewey said in a statement.