Tribune staff report | Unitrin Inc. said it has reached an
agreement in principle to sell its health insurance subsidiary, Reserve
National Insurance Co. to Physicians Mutual Insurance Co.

Terms of the deal, which has not been finalized, were not disclosed.
The transaction is expected to be completed in the second quarter of
2010.

Reserve National, based in Oklahoma City, specializes in the sale of
accident and health insurance products and Medicare Supplement
insurance.

Reserve National recorded earned premiums of $127 million
and net income of $3.1 million in 2009. Unitrin expects to record a
gain upon completion of the transaction.

“While Reserve National has performed well since we purchased it in 1998, we do not have the scale in health insurance to compete effectively in the years ahead,” said Don Southwell, Unitrin’s chairman, president and chief executive.