- Unitrin Inc
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. [cite web |url= http://www.unitrin.com/ |title= Unirin, Inc |accessdate= 2007-12-09 ]
The primary competition for Unitrin areAmerican International Group Inc. ;Nationwide Mutual Insurance Company andState Farm Mutual Automobile Insurance Company . [cite web |url= http://www.answers.com/topic/unitrin-inc?cat=biz-fin |title= Unitrin, Inc. 2006 Fiscal Year |accessdate= 2007-12-09 ]History
Unitrin, Inc was founded in April 1990 when it was spun off from
Henry Singleton 's conglomerateTeledyne , Inc. (NYSE :TDY ). Singleton, hoping Unitrin Inc. spin off would duplicate the results of theArgonaut 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 asArgo 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 onNASDAQ . 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 astock buyback plan of ten million shares or 19% of itsstock . American gerneral then took Unitrin to court. A DelawareChancery Court judge agreed and issued arestraining order against Unitrin's proposed stock buyback untilSeptember 27 ,1994 . Unitrin continued to resist the merger ogger, and onDecember 13 ,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 1994fiscal year . As Unitrin entered its fifth year as an independent company, Unitrin continued buying back its stock to keep American General and, possibly, othersuitors 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 onFebruary 7 ,1995 and was not renewed.. [cite web |url= http://www.fundinguniverse.com/company-histories/Unitrin-Inc-Company-History.html |title= Funding Universe - Unitrin Inc Company History |accessdate= 2007-12-09 |date= 1997 Funding Universe obtained this article from cite encyclopedia | title= International Directory of Company Histories |publisher=St. James Press |date= 1997 |volume= 16 ]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 theDepression 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. [cite news |title= Unitrin Inc. Insurance Company to Repay Millions in Discrimination Suit. |publisher=Jet |url= http://findarticles.com/p/articles/mi_m1355/is_23_101/ai_87024803 |date=2002-05-27 |accessdate= 2007-12-09 ]
= Unitrin Subsidiaries [cite web |url= http://www.unitrin.com/familyCompanies.htm |title= Unitrin Insurance and Finance Subsidiaries and Affiliated Companies |accessdate= 2007-12-09 ] =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 CompanyUnitrin direct Property & Casualty Company
Unitrin Preferred Insurance Company
Valley Insurance Company
Valley Property & Casualty Insurance CompanyLife 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 AmericaConsumer Finance
Fireside Bank
= Board of Directors [cite web |url= http://phx.corporate-ir.net/phoenix.zhtml?c=91209&p=irol-govBoard |title= Directors and Management |accessdate= 2007-12-09 ] =Richard C. Vie - Chairman- Unitrin, Inc.
James E. Annable - Secretary to theFederal Advisory Council ,Board of Governors of theFederal 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 ExecutiveWilliam E. Johnston, Jr. - Retired President and Chief Operating Officer-Morton International, Inc. Wayne Kauth - Independent Financial ConsultantFayez 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 External links
* [http://www.unitrin.com/ Unitrin, Inc]
* [http://www.secinfo.com/d18TY3.v17x.htm Rights Agent for Wachovia Bank, National Association]References
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