Infinity Property and Casualty Corporation
Infinity Property and Casualty — Merger or Acquisition (February 2018)
14 slides from Infinity Property and Casualty's merger presentation, Feb 13, 2018
Slide 1: Kemper to Acquire Infinity P&C
Kemper to Acquire Infinity P&C
Slide 2: Taking the Next Step on Kemper's Journey to Unlock Embedded Value
Majority of Phase 1 and Phase 2 initiatives are complete or ahead of schedule Shifting focus towards Phase 3 as a result of improved operating performance Grow and enhance strategic position in key focus markets Scale business platform and enhance product suite Optimize data and analytics capabiliti
Slide 3: Infinity P&C Overview – A Premier NSA Platform
Infinity P&C Overview – A Premier NSA Platform Principally focuses on high growth urban markets through unique service capabilities to Hispanic communities Strong underwriting and claims processes delivered through a low cost and efficient operating platform Large and diversified distribution channe
Slide 4: Transaction Details
Transaction Details 1 Based on ~11.0mm fully diluted shares of Infinity at $129.00 per share, which assumes 10.9mm basic shares and 0.07mm shares related to non-vested RSUs. Transaction Kemper Corporation acquires Infinity P&C in a cash and stock transaction Deal Value $1.4bn transaction equity valu
Slide 5: Key Investment Highlights
Key Investment Highlights Reinforces Kemper’s strategy of focusing on niche markets Combination of best-in-class capabilities, expertise, and operational excellence Creates an industry-leading NSA insurer with significant scale Enhances service through Infinity’s brand and capabilities among urban a
Slide 6: Industry-Leading NSA Insurer Focused on Niche Markets
Industry-Leading NSA Insurer Focused on Niche Markets Enhanced Scale in Fragmented Personal Auto Market Scale and Focus to Offer a Valuable Service to Niche Markets Source: A.M. Best Ability to attract and retain key talent Specialized products for NSA customers Improved data and analytical capabili
Slide 7: Nonstandard insurance represents a historically niche segment with meaningful growth opportunities
Nonstandard insurance represents a historically niche segment with meaningful growth opportunities Infinity’s target markets complement Kemper’s existing nonstandard footprint Infinity focused across 15 of the largest urban zones in the U.S. Target markets represent a meaningful percentage of the no
Slide 8: Reinforces Kemper's Strategy of Focusing on Niche Segments
Reinforces Kemper’s Strategy of Focusing on Niche Segments Diversified product offerings focused on niche customers Combined entity offers more capital efficiency Opportunity to offer life, health, renters products to Infinity customer base Commercial auto offers attractive source of growth 2017 EP:
Slide 9: Significant Value Creation Through Combination
Significant Value Creation Through Combination Strong product and claim capabilities Low cost and efficient processes Proven growth track record in core markets Specialized products and services provide meaningful value to the urban and Hispanic communities – extensive bilingual capabilities In addi
Slide 10: Financially Compelling & Conservatively Structured Transaction
Financially Compelling & Conservatively Structured Transaction Earned Premium $3.7bn of combined earned premiums ~58% increase in Kemper’s 2017 earned premiums EPS Accretion Accretive to EPS (excluding value of business acquired (“VOBA”) and one-time items) in Year 1 (first twelve months following c
Slide 11: Well-Positioned Operating Profile with Conservative Capital Structure
Well-Positioned Operating Profile with Conservative Capital Structure FY 2017 ($ millions) Earned Premiums $2,350 $1,371 $3,721 Combined Ratio (underlying)¹ NSA: P&C: 94.7 % 94.2 % 96.4 % 95.4 % 95.7 % 94.7 % Expense Ratio NSA: P&C: 16.1 % 22.1 % 17.4 % 18.3 % 16.8 % 20.4 % Operating Income² $93 $44
Slide 12: Key Investment Highlights
Key Investment Highlights Reinforces Kemper’s strategy of focusing on niche markets Combination of best-in-class capabilities, expertise, and operational excellence Creates an industry-leading NSA insurer with significant scale Enhances service through Infinity’s brand and capabilities among urban a
Slide 13: Appendix: Additional Information
Appendix: Additional Information
Slide 14: Transaction Consideration Detail
Transaction Consideration Detail Total Consideration to Infinity Shareholders – 20-Day VWAP1 Cash Consideration Kemper shares issued to Infinity (mm) 13.2 Kemper Share Price (20-day VWAP) $64.40 Total Value (20-day VWAP) $ 850 Kemper Share Price (current price) $57.75 Total Value (current price) $ 7
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