Unitrin Inc. reached an agreement with Physicians Mutual to sell Reserve National Insurance Co., its health insurance subsidiary that specializes in accident and health insurance products and Medicare Supplement insurance. “We believe that Reserve National is a very good fit with Physicians Mutual,” says Don Southwell, Unitrin’s chairman, president and CEO. “While Reserve National has performed well since we purchased it in 1998, we do not have the scale in health insurance to compete effectively in the years ahead.”
Reserve National recorded earned premiums of $127 million and net income of $3.1 million in 2009. Unitrin expects to record a gain upon completion of the transaction.
The transaction is subject to negotiation and execution of a definitive purchase agreement, completion of due diligence and regulatory approval. Unitrin expects the transaction to be completed in the second quarter of 2010.
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