Berkshire Hathaway Subsidiary National Indemnity Company Backs Kemper Insurance With Cut-Through Agreement.Business Editors LONG GROVE Long Grove may refer to:
Policies Issued Under Agreement Backed by A++ Rating The Kemper Insurance Companies has reached an agreement-in-principle with Berkshire Hathaway Berkshire Hathaway (NYSE: BRKA, NYSE: BRKB) is a conglomerate holding company headquartered in Omaha, Nebraska, U.S., that oversees and manages a number of subsidiary companies. Inc. subsidiary National Indemnity Recompense for loss, damage, or injuries; restitution or reimbursement. An indemnity contract arises when one individual takes on the obligation to pay for any loss or damage that has been or might be incurred by another individual. Company, whereby National Indemnity will provide a cut-through endorsement on policies issued under the agreement beginning January 1, 2003. These policies will be backed by the A++ rating of National Indemnity. "National Indemnity is the largest member of the Berkshire Hathaway group of companies and we're delighted to have their support and the strength of their A++ rating behind us," said Kemper Chairman and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. David B. Mathis. "Under this agreement, we have the backing to continue operating our core businesses while we restructure our operations in preparation for demutualization Demutualization The process of changing corporate structure from a mutual fund company to some other form, such as a limited liability or corporation. Notes: This means mutual/life insurance companies convert from policyholder companies to stock companies. , a process which we believe will ultimately enable us to access the capital needed to improve our balance sheet, enhance our ratings and profitably execute our business plan." The agreement-in-principle, which will be effective as of January 1, 2003, is subject to closing conditions, including regulatory and board approvals. Closing is expected in the first quarter of 2003. In connection with the closing, Kemper will repurchase re·pur·chase tr.v. re·pur·chased, re·pur·chas·ing, re·pur·chas·es To buy (something) again. n. The act of buying something that one previously sold or owned. Noun 1. for $125 million Berkshire's minority equity investment in a Kemper subsidiary company. The Kemper Insurance Companies is a leading provider of commercial property/casualty insurance headquartered in Long Grove, Ill.. For more information about Kemper, visit www.kemperinsurance.com. |
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