Kemper Corp. said late Tuesday it has agreed to buy Infinity Property and Casualty Corp. in a cash-and-stock deal worth about $1.4 billion."The transaction creates a company with increased scale in nonstandard auto insurance and enhanced ability to serve policyholders," the companies said in a statement.
The combined company would have a portfolio of about $2.2 billion in nonstandard, or insurance sold to higher-risk drivers and other situations, auto insurance premiums.
Under the terms of the merger agreement, Infinity shareholders will receive $51.60 in cash and 1.2019 Kemper common shares for each share of Infinity common stock. The deal is expected to close in the third quarter, subject to shareholder approval and other conditions.