Unitrin Subsidiary to Buy Auto Insurer Direct Response

CHICAGO, Sep 02, 2008 (A. M. Best via COMTEX) -- UTR | Quote | Chart | News | PowerRating -- Unitrin Inc. said its subsidiary, Trinity Universal Co., will acquire Direct Response Corp. and its subsidiaries for about $220 million.

The transaction is expected to close during the fourth quarter this year. It is subject to regulatory approvals, according to a statement from Unitrin.

Direct Response, of Meriden, Conn. specializes in personal automobile insurance under brand names, Response Insurance and Teachers Insurance Plan. It had about $147 million in direct written premiums at the end of last year.

Chicago-based Unitrin (NYSE:UTR) is a holding company. Its property/casualty group consists of 23 wholly owned insurance subsidiaries that provide a full array of products in most states across the country sold through independent agents and brokers as well as via direct mail and the Internet, according to an A.M. Best credit report.

Shares of Unitrin were selling at $26.07 the morning of Sept. 2, about a 2.1% increase since the previous close.

Unitrin Property & Casualty Insurance Group currently has a Best's Financial Strength Rating of A (Excellent).

(By Chad Hemenway, associate editor, BestWeek: Chad.Hemenway@ambest.com)

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