Kemper Finds Solace in Claims Services
By Robert Warne - March 4, 2003The Kemper Insurance Companies released details related to its corporate transformation into a TPA service oriented organization March 4, after it reported a 2002 net loss of $312 million and a surplus loss of $475 million.
Since January Kemper has hocked to name just a few, the renewal rights to portions of its book of business to Old Republic Insurance Co., The Hartford Financial Services Group and Argonaut Insurance Co.
Such actions have been initiated by Kemper in its move to separate itself from underwriting activities and focus exclusively on its claim and insurance services subsidiary National Loss Control Service Corporation (NATLSCO, Inc.).
With offices dotted across the country, NATLSCO boasts a solid California presence with offices in Anaheim, Concord and Rancho Cordova.
Kemper’s latest move has been to shuffle the remainder of it’s available business lines to a new company, which will be funded by a variety of sources including Kemper’s existing management team.
The new unaffiliated company will retain the Kemper name, which is expected to add value to its workers’ compensation and other middle market offerings.
Kemper is expected to receive $9 million for certain licensed insurance entities and a commission on renewals in the lines of business included in the transaction as well as other financial benefits.
Kemper Chairman and CEO, David Mathis explained that "The transaction around our middle market, small business and related specialty lines will support our efforts to enhance our services platform as a third party administrator."
And for current Kemper employees and future employees, there’s a silver lining in the insurance giant’s conversion from an SUV to a sedan.
According to Mathis, there will be opportunities for employees in the new commercial lines services company and a demand for employees to assist in the withdrawal from its discontinued offerings.
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