Kemper Corp.'s plan to acquire Infinity Property & Casualty Corp. for $1.32 billion makes for the fifth-largest U.S. property and casualty merger since 2013, according to S&P Global Market Intelligence data.
Statutory data shows that the combined company would have generated $2.50 billion in premiums in 2016, controlling 1.17% of the U.S. personal auto market. Using the same pro-forma analysis, a combined Kemper/Infinity would have ranked as the 14th-largest U.S. personal auto insurance underwriter. Individually, Infinity ranked 21st while Kemper was just one place behind in 22nd, as of Dec. 31, 2016.
Kemper's personal auto written premiums grew by 11.0% between 2014 and 2016, climbing to $1.24 billion from $1.12 billion. Premium growth at Infinity, on the other hand, was essentially flat during those three years. Premiums grew by just 0.3% to $1.26 billion from $1.25 billion.
The deal is expected to close in the third quarter.
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