Unitrin Buys Rights to the Kemper Name

Unitrin Inc. said it has purchased all rights to the "Kemper" name from Lumbermens Mutual Casualty Co. and its affiliates. Terms of the transaction were not disclosed.

The rights include registered trademarks, logos and Internet domain names that incorporate the Kemper name, said Unitrin (NYSE: UTR) in a statement

Unitrin bought the personal lines business of Lumbermens in 2002. In doing so, it acquired a license to use the Kemper name in its personal lines business only. The new transaction provides Unitrin unrestricted use of the Kemper name in all of its operations.

Unitrin spokesman Frank J. Sodaro said there are no immediate plans to use the Kemper name to expand its commercial business lines. "We don't see a changing of focus as a result of the expanded use of the Kemper name," he said. "Our specialty segment, a nonstandard auto insurance provider, has a small commercial book, but there are no immediate plans to integrate the name. However, this agreement gives us the ability to do so."

Lumbermens, based in Long Grove, Ill., for many years owned the intellectual property rights to the Kemper name and conducted business under the name "Kemper Insurance Cos." Since 2003, the company has been in the process of winding down its remaining insurance operations, according to Unitrin. It will now refer to itself as the "Lumbermens Mutual Group."

Unitrin's principal businesses are in personal lines. The company said that under the Kemper name, it has written automobile, homeowners and other insurance products through a network of independent agents. Through Unitrin Direct, it markets auto and homeowners insurance via direct mail, the Internet, employer-sponsored benefit programs and other affinity relationships. Through Unitrin Specialty, it provides auto insurance through independent agents and brokers to individuals and small businesses that have had difficulty procuring insurance through traditional channels. Unitrin's Career Agency Cos. specialize in the sale of life insurance to people of modest incomes.

In mid-afternoon June 30, Unitrin stock was trading at $26.00 a share, up 0.12% from the previous close.

Unitrin Direct Insurance Co. has a current Best's Financial Strength Rating of A- (Excellent).

(By Ron Panko, senior associate editor, Best's Review: [email protected])