Unitrin Says Talks to Sell Reserve National to Physicians Mutual Have Been Terminated

Unitrin, Inc. (NYSE: UTR) said that its previously announced negotiations with Physicians Mutual Insurance Company for the sale of Unitrin's Reserve National Insurance Company subsidiary have been terminated due to a failure by the parties to reach a definitive agreement. Unitrin had announced two months ago that it had reached an agreement in principle to sell Reserve National to Physicians Mutual® (see also Property & Casualty Insurance).

In connection with this development, Unitrin also announced that it has retained Macquarie Capital to assist it in identifying a suitable alternative buyer for Reserve National.

Don Southwell, Unitrin's Chief Executive Officer, commented that "While health insurance is not a core business for Unitrin, we believe that Reserve National is an excellent, well-managed company that will be a very good fit with a larger health insurance organization. We are optimistic about the prospects for concluding a transaction in 2010."

Reserve National, based in Oklahoma City, specializes in the sale of accident and health insurance products and Medicare Supplement insurance. Reserve National reported earned premiums of $127 million and net income of $3.1 million in 2009.