Beleaguered Kemper To Cease Underwriting Amidits disappointing 2002 year-end results, Kemper Insurance Companiesannounced that it will cease underwriting activities and sell itscore middle-market business to a new firm capitalized by equityinvestment firms, including an affiliate of giant reinsurer SwissRe.

The Long Grove, Ill.-based insurer said it will ceaseunderwriting activities except as necessary to meet its existingobligations. Going forward, Kemper will focus on expandingopportunities for its claim and insurance services platform to sellits capabilities to current and new customers, the companysaid.

Under its deal with New York-based Securitas Capital LLC, anaffiliate of Swiss Re, and others, in exchange for renewal rightsto Kemper's middle-market p-c business and some other lines, Kemperwill receive commissions on the renewals and other unspecifiedfinancial benefits. Kemper will also receive $9 million plusstatutory surplus for certain licensed insurance entities.