Unitrin Inc

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Unitrin, Inc
Type Public
Founded 1990
Headquarters Chicago, Illinois, USA
Key people Richard C. Vie, Chairman
Industry Insurance and Consumer Finance
Revenue $3,075.5 million USD (2006)[1]
Employees 8,045 (2006)
Website www.unitrin.com


Unitrin, Inc (NYSE: UTR) is a financial services company providing a diverse array of insurance and consumer finance products and services for individuals, families, and small businesses.[2]
The primary competition for Unitrin are American International Group Inc.; Nationwide Mutual Insurance Company and State Farm Mutual Automobile Insurance Company.[3]

Contents

[edit] History

Unitrin, Inc was founded in April 1990 when it was spun off from Henry Singleton's conglomerate Teledyne, Inc. (NYSE: TDY). Singleton, hoping Unitrin Inc. spin off would duplicate the results of the Argonaut Group Inc., originally a worker's compensation insurance provider, spin off in 1986. Argonaut's original $20 per share stock appreciated 240 percent by 1990. Argonaut Group Inc is now known as Argo Group International Holdings, Ltd (NASDAQ:AGII). Singleton remained chairman of Unitrin, Inc after it was spun off to shareholders at $31.25 per share, trading on NASDAQ. Unitrin divided its business into three major categories: life and health insurance; property and casualty insurance; and consumer finance, which covered a variety of services including automobile and industrial loans.

During the second part of 1994, Unitrin Inc. was targeted for a hostile takeover because of its increasing success. American General Corp., an insurance carrier headquartered in Houston placed a 2.6 billion takeover bid. On June 26th Unitrin rejected the $50.38 per share offer and adopted a poison pill defense by initiating a stock buyback plan of ten million shares or 19% of its stock. American gerneral then took Unitrin to court. A Delaware Chancery Court judge agreed and issued a restraining order against Unitrin's proposed stock buyback until September 27, 1994. Unitrin continued to resist the merger ogger, and on December 13th, 1994 the Delaware Supreme Court overturned the lower court's injunction, Unitrin, Inc. v. American General Corp., which allowed Unitrin Inc, to continue buying back its stock. As 1994 ended, Unitrin's total revenues rose slightly to $1.37 billion, just over the previous year's $1.36 billion. However, Unitrin's net income rose from $95 million in 1993 to a shocking $148 million for 1994 fiscal year. As Unitrin entered its fifth year as an independent company, Unitrin continued buying back its stock to keep American General and, possibly, other suitors at bay. By the end of 1995, Unitrin had bought back 13.5 million shares at a cost of $661 million. Unitrin's poison pill defense worked: American General's takeover bid expired on February 7th, 1995 and was not renewed..[4]

[edit] Criticism

Unitrin Inc. agreed to settle a class-action lawsuit and repay $27 million to clients overcharged for life insurance because they were African-American. The settlement came after two years of investigation and negotiations among the companies, insurance regulators and attorneys representing policyholders. The money went to about 467,000 people who held policies sold from the Depression era through 1970. Insurance companies during that time often charged African-American customers more than caucasian customers on the grounds that they were perceived to have a shorter life span and were a higher insurance risk.[5]

[edit] Unitrin Subsidiaries[6]

[edit] Property and Casualty Insurance

Alpha Property & Casualty Insurance Company
Charter Indemnity Company
Clayton Reinsurance Ltd.
Financial Indemnity Company
Kemper Independence Insurance Company
Merastar Insurance Company
Milwaukee Casualty Insurance Co.
Milwaukee Safeguard Insurance Company
SecurityNational Insurance Company
Trinity Universal Insurance Company
Trinity Universal Insurance Company of Kansas, Inc.
Union National Fire Insurance Company
United Casualty Insurance Company of America
Unitrin Advantage Insurance Company
Unitrin Auto and Home Insurance Company
Unitrin Direct Insurance Company
Unitrin Direct Property & Casualty Company
Unitrin Preferred Insurance Company
Valley Insurance Company
Valley Property & Casualty Insurance Company

[edit] Life and Health Insurance

Reserve National Insurance Company
The Reliable Life Insurance Company
The Reliable Life Insurance Company of Texas
Union National Life Insurance Company
United Insurance Company of America

[edit] Consumer Finance

Fireside Bank

[edit] Board of Directors[7]

Richard C. Vie- Chairman- Unitrin, Inc.
James E. Annable- Secretary to the Federal Advisory Council, Board of Governors of the Federal Reserve Board
Eric J. Draut- Executive Vice President and Chief Financial Officer- Unitrin, Inc.
Donald V. Fites- Retired Chairman and Chief Executive Officer- Caterpillar Inc.
Douglas G. Geoga- Hospitality Investment and Advisory Consultant- Geoga Group, L.L.C.
Reuben L. Hedlund- Managing Director- Hedlund & Hanley L.L.C.
Jerrold V. Jerome- Retired Executive
William E. Johnston, Jr.- Retired President and Chief Operating Officer- Morton International, Inc.
Wayne Kauth- Independent Financial Consultant
Fayez S. Sarofim- Chairman and President- Fayez Sarofim & Co.
Donald G. Southwell- President and Chief Executive Officer- Unitrin, Inc.
Ann E. Ziegler- Senior Vice President- Sara Lee Corporation

[edit] External links

[edit] References

  1. ^ Unitrin, Inc. 2006 Fiscal Year. Retrieved on 2007-12-09.
  2. ^ Unirin, Inc. Retrieved on 2007-12-09.
  3. ^ Unitrin, Inc. 2006 Fiscal Year. Retrieved on 2007-12-09.
  4. ^ Funding Universe - Unitrin Inc Company History (1997). Retrieved on 2007-12-09. Funding Universe obtained this article from "International Directory of Company Histories". 16. (1997). St. James Press. 
  5. ^ "Unitrin Inc. Insurance Company to Repay Millions in Discrimination Suit.", Jet, 2002-05-27. Retrieved on 2007-12-09. 
  6. ^ Unitrin Insurance and Finance Subsidiaries and Affiliated Companies. Retrieved on 2007-12-09.
  7. ^ Directors and Management. Retrieved on 2007-12-09.