CHICAGO -- Kemper Corp. Monday said it has entered into a definitive agreement to acquire American Access Casualty Co. and its related insurance agency, Newins Insurance Agency Holdings, and its subsidiaries in a cash transaction valued at $370 million.
AAC, headquartered in Downers Grove, provides specialty private passenger auto insurance in Illinois, Indiana, Arizona, Nevada and Texas. The transaction is expected to close in the first quarter of 2021, subject to regulatory approval and other customary closing conditions, Kemper said.
AAC wrote over $370 million of direct premiums in 2019 through a network of about 500 independent agents and over 110 company agents. AAC's multichannel distribution strategy, agency relationships and deep ties to the markets it serves -- particularly Hispanic communities -- have driven strong growth and consistent profitability, Kemper said.
"AAC is a great addition to Kemper's specialty auto franchise and aligns with our strategic intent to serve growing niche markets with affordable and easy-to-use products," said Duane Sanders, president of Kemper's P&C Division.