Unitrin, Inc. reported today that its subsidiary, Trinity Universal Insurance Co. is buying Direct Response Corp. and its subsidiaries.
Trinity will acquire Direct Response in a cash transaction valued at approximately $220 million, subject to certain purchase price adjustments.
The parties expect to close the transaction in the fourth quarter of 2008.
Direct Response is based in Meriden, Connecticut and specializes in the sale of personal automobile insurance directly to consumers under both the Response Insurance and Teachers Insurance Plan brand names. For the year ended Dec. 31, 2007, Direct Response recorded direct written premiums of approximately $147 million.
Donald G. Southwell, Unitrin’s chief executive officer, said Direct Response will continue to market its products under the Response Insurance and Teachers Insurance Plan brand names and will be reported as part of the Unitrin Direct business segment.
Unitrin is a financial services company. Among its brands are Kemper and Unitrin Specialty, which sell automobile, homeowners and other personal insurance and commercial automobile insurance through networks of independent agents, and Unitrin Direct, which sells automobile and homeowners insurance directly to consumers or through employer-sponsored voluntary benefit programs.
Source: Unitrin www.unitrin.com