Chicago-based financial services company Unitrin Inc. said todaythat it has entered into a definitive agreement to sell its UnitrinBusiness Insurance (UBI) unit to AmTrust Financial Services Inc.,headquartered in New York, in a cash transaction. Terms of the dealwere not released.

Unitrin announced in September an agreement in principle for thesale. AmTrust will acquire the renewal rights to the UBI book ofbusiness and certain legal entities as well as selected otherassets and personnel that Unitrin currently employs to write itsUBI business. Unitrin said it will retain preclosing loss and lossadjustment reserves.

Unitrin Business Insurance serves commercial customers in 30states through a network of independent agents and had totalpremium revenues of approximately $165 million in 2006.

The deal is subject to approvals by insurance regulators andother customary closing conditions. It is expected to close by theend of the first quarter of 2008.