Kemper Sells Renewal Rights to Argonaut
By Robert Warne - April 8, 2002The writing is on the wall for Kemper employees handling the runoff of the old Superior National book of business.
During the first week of April, Kemper Employers Group (KEG) sold the new and renewal rights of Superior it acquired from the State to Argonaut Insurance Co. At face value, this move signals that this branch of Kemper will dry up after it finishes the runoff.
When asked by adjustercom.com, Jeff Moder, the communications manager for Kemper Insurance Companies, confirmed that the transaction did take place.
Apparently the Commercial Compensation Specialty Operation (CCSO) unit under KEG was established to acquire the renewal rights business of Superior National in 2000. These were the renewal rights that CCSO sold to Argonaut last week.
This casts a shadow of uncertainty over Kemper employees administering the Superior runoff in the Calabasas, Rancho Cordova and Fresno offices.
Reportedly, Kemper agreed to administer the Superior runoff for a fee, which it thought it could do and turn a profit on the deal. But according to sources close to the matter, early on it was evident that Kemper failed to properly assess the penalties exposure related to the runoff. So money earmarked as profits, quickly went out the window.
Argonaut representatives were contacted, but were not available for comment today. Argonaut purchased some of HIH’s new and renewal business back in 2000.
adjustercom.com will provide more details as they emerge. | 
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