CHICAGO–(BUSINESS WIRE)–Oct. 7, 1999–Unitrin, Inc. (Nasdaq: UNIT) announced today that it has entered into an agreement with Ceres Group, Inc. for the sale of Unitrin’s subsidiary, The Pyramid Life Insurance Company, to Ceres Group for $67.5 million cash, part of which will be in the form of a dividend by Pyramid Life immediately prior to closing. Pyramid Life, based in Mission, Kansas, specializes in the sale of health insurance products, including Medicare Supplement, targeted at the senior market. Pyramid Life had premium revenues of approximately $62 million in 1998 and $31 million for the six months ended June 30, 1999. Pyramid’s premiums account for about 5% of Unitrin’s consolidated insurance premium revenues.
The transaction is subject to regulatory approvals and the satisfaction of other customary closing conditions and is expected to close late this year or early in 2000.
Richard C. Vie, Unitrin’s Chairman and Chief Executive Officer, stated that, “Pyramid Life is a quality company and the decision to sell it was a difficult one, but we believe that Pyramid’s prospects for growth will be enhanced as it joins an organization for which the senior market is a key focus.”
Through its subsidiaries, Unitrin is engaged in property and casualty insurance, life and health insurance and consumer finance.
CONTACT: Unitrin, Inc.
Investor Relations, 312/661-4930
KEYWORD: ILLINOIS KANSAS
INDUSTRY KEYWORD: BANKING INSURANCE