Kemper Purchases Majority Stake In Contract Surety

In what it describes as another move to strengthen its presence in the contract surety field, the Kemper Insurance Companies has purchased an 80 percent interest in Lou Jones & Associates, Inc. Lou Jones is a Los Angeles-based managing general agency that specializes in the production, underwriting and adjusting of contract surety bonds for developers and building contractors. Terms of the transaction were not disclosed.

David B. Mathis, Kemper chairman and chief executive officer, said the acquisition of Lou Jones is complementary with its recently announced definitive agreement to acquire 80 percent of Universal Bonding Insurance Co., a major underwriter of small contract surety bonds. "Together, the two companies provide a strong platform by which Kemper can profitably grow and expand its contract surety business," Mathis said.

Lou Jones & Associates Chairman and Chief Executive Officer Bill Shupper retains a 20% ownership in the company. Shupper, together with the current management team, will remain with the company. Lou Jones has 30 employees and has projected 1998 sales of $18.5 million. The company operates primarily in California, where it has offices in Los Angeles, Orange County and San Mateo.

"Lou Jones & Associates will be a real asset to our developing contract surety bond business," Mathis said. "They know the business as well as any producers in the field. We look forward to capitalizing on their proven marketing and underwriting expertise to grow our presence in this business."

"We've enjoyed an exceptional relationship with Kemper for more than 13 years," Shupper said. "Being part of the Kemper organization will only enhance our ability to provide a dependable market and extraordinary services to the contract surety marketplace."