US-based specialised insurer Kemper has reached an agreement to sell Reserve National Insurance Company and its subsidiaries to Medical Mutual of Ohio for a sum of $90m.
Reserve National Insurance Company, along with its subsidiaries, primarily offers accident and health insurance policies.
Based in Oklahoma City in the US, Reserve National serves both individual and group markets with written premiums of more than $170m last year.
The new deal is yet to receive regulatory approval and other closing conditions. It is scheduled to be completed by late 2022 or early next year.
Upon the completion of the deal, Kemper anticipates to post positive results in its earnings.
Medical Mutual of Ohio People and Strategy executive vice president Tom Dewey said: “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.”
Medical Mutual of Ohio was established in 1934 with headquarters in Cleveland.
The company provides health, life, disability, dental, vision and indemnity insurance policies across Ohio.
Kemper president, CEO and chairman Joseph P Lacher Jr said: “This transaction aligns with Kemper’s strategic intent and is a great fit for Medical Mutual of Ohio.
“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.”
In November 2020, Kemper announced a deal to acquire American Access Casualty Company (AAC) for $370m in cash.
The deal also included AAC and its affiliated captive insurance agency Newins Insurance and its subsidiaries.