Old Republic Announces Purchase of Large Risk Management Account Renewal Rights From Kemper
January 15, 2003
CHICAGO, Jan. 15 /PRNewswire-FirstCall/ -- Old Republic International Corporation (NYSE: ORI - News) announced that its wholly owned subsidiary, Old Republic Insurance Company, has reached a definitive agreement to purchase the renewal rights to certain large risk national accounts of the Kemper Insurance Companies.
Old Republic is purchasing the renewal rights to Kemper's unbundled risk management accounts and will not be assuming any liabilities incurred prior to any of its renewals. With unbundled accounts, the underwriting and policy issuance portion of a program is purchased from one insurer while ancillary services in support of that program can be obtained from another provider, usually a non-affiliated third party administrator (TPA). Based on a preliminary review, Old Republic understands that the subject book of business incorporates slightly more than 100 assureds and that gross premium volume before reinsurance cessions for the aggregate of most such accounts totals approximately $140 million on an annualized basis.
Source: Old Republic International Corporation