Is Kemper Insurance Nearing Liquidation?
Tyler Gerking of Farella Braun + Martell LLP recently posted that Kemper Insurance is close to being put in a liquidation proceeding. According to Kemper's website, as of January 1, 2008, Kemper Insurance Companies in the U.S. included Lumbermens Mutual Casualty Company and its affiliated property and casualty insurers:
- American Manufacturers Mutual Insurance Company
- American Motorists Insurance Company
- Kemper Casualty Insurance Company
- Kemper Insurance Company of Texas
- Specialty Surplus Insurance Company
If you have a claim or potential claim on a commercial general liability policy or some other Kemper policy, you should check out Tyler's post. Here are some of the highlights:
But Kemper’s year-end financials for 2009 indicate that it is perilously close to the edge of the proverbial cliff. Lumbermens Mutual Casualty Company, Kemper’s largest member company, has only about $8 million in policyholder surplus available, down from just over $113 million one year ago. Kemper’s other large member company, American Manufacturers Mutual Insurance Company, reported a policyholder surplus of only about $11 million. Since these numbers were reported, we’ve noticed a considerable increase in chatter suggesting that Kemper may be in its final days.
But Kemper’s year-end financials for 2009 indicate that it is perilously close to the edge of the proverbial cliff. Lumbermens Mutual Casualty Company, Kemper’s largest member company, has only about $8 million in policyholder surplus available, down from just over $113 million one year ago. Kemper’s other large member company, American Manufacturers Mutual Insurance Company, reported a policyholder surplus of only about $11 million. Since these numbers were reported, we’ve noticed a considerable increase in chatter suggesting that Kemper may be in its final days.
But Kemper’s year-end financials for 2009 indicate that it is perilously close to the edge of the proverbial cliff. Lumbermens Mutual Casualty Company, Kemper’s largest member company, has only about $8 million in policyholder surplus available, down from just over $113 million one year ago. Kemper’s other large member company, American Manufacturers Mutual Insurance Company, reported a policyholder surplus of only about $11 million. Since these numbers were reported, we’ve noticed a considerable increase in chatter suggesting that Kemper may be in its final days.
But Kemper’s year-end financials for 2009 indicate that it is perilously close to the edge of the proverbial cliff. Lumbermens Mutual Casualty Company, Kemper’s largest member company, has only about $8 million in policyholder surplus available, down from just over $113 million one year ago. Kemper’s other large member company, American Manufacturers Mutual Insurance Company, reported a policyholder surplus of only about $11 million. Since these numbers were reported, we’ve noticed a considerable increase in chatter suggesting that Kemper may be in its final days.
Given the economic condition of Kemper and the potential for a liquidation proceeding, now is the time to review your files to determine if you have any claims or potential claims under any Kemper policies. Tyler's post concludes with this sound advice:
Given the limited recovery available in a liquidation, policyholders should evaluate whether such claims can be resolved now, even at discount. Kemp er may entertain such agreements since it could improve its balance sheet by removing reserves. Thus, it is vital for policyholders to evaluate their risks in a Kemp er liquidation on a state-by-state basis and develop a strategy to mitigate those risks. We have done this for a number of clients and have been able to creatively reduce their exposure.
