Corporation (NYSE: KMPR) announced that its subsidiary, Fireside
Bank, completed the sale of its active loan portfolio to a subsidiary of
Consumer Portfolio Services, Inc. on September 14, 2011. Kemper expects
to recognize a gain of approximately $3 million from the sale, net of
tax and transaction costs, in the third quarter 2011.
As previously announced, Fireside Bank has retained its non-active loan
portfolio, which is in run-off and contains approximately $475 million
of previously charged-off loans as of August 31, 2011. Kemper
expects to receive approximately $265 million of capital from Fireside
Bank, of which approximately $255 million is expected to be received in
the fourth quarter 2011. Following completion of Fireside Bank’s planned
wind-down process, which includes turning in its bank charter, any
additional remaining excess capital will be returned to Kemper.
Kemper’s principal businesses:
Kemper Preferred provides auto, homeowners and other insurance
products to individuals through a network of independent agents.
Unitrin Specialty provides auto
insurance through a network of independent agents and brokers to
individuals and small businesses which have had difficulty procuring
insurance through traditional channels, usually due to adverse driving
records, claim or credit histories.
Unitrin Direct markets auto and homeowners
insurance to consumers via direct mail, the internet,
employer-sponsored employee benefit programs and other affinity
Life and Health Insurance specializes in the sale of life and
health insurance products to individuals through networks of employee
agents and exclusive, independent agents.
Additional information about Kemper is available by visiting its website
Caution Regarding Forward-Looking Statements
This press release may contain or incorporate by reference information
that includes or is based on forward-looking statements within the
meaning of the safe-harbor provisions of the Private Securities
Litigation Reform Act of 1995. Forward-looking statements give
expectations or forecasts of future events, and can be identified by the
fact that they relate to future actions, performance or results rather
than strictly to historical or current facts.
Any or all forward-looking statements may turn out to be wrong, and,
accordingly, readers are cautioned not to place undue reliance on such
statements, which speak only as of the date of this press release.
Forward-looking statements involve a number of risks and uncertainties
that are difficult to predict, and are not guarantees of future
performance. Among the general factors that could cause actual results
to differ materially from estimated results are those listed in periodic
reports filed by Kemper with the Securities and Exchange Commission (the
"SEC"). No assurances can be given that the results contemplated in any
forward-looking statements will be achieved or will be achieved in any
particular timetable. Kemper assumes no obligation to publicly correct
or update any forward-looking statements as a result of events or
developments subsequent to the date of this press release. The reader is
advised, however, to consult any further disclosures Kemper makes on
related subjects in its filings with the SEC.
Source: Kemper Corporation