Physicians Mutual Insurance Company has agreed to acquire Reserve National Insurance Company from Unitrin Inc. (NYSE:UTR).

Physicians Mutual, Omaha, Neb., sells health insurance, life insurance, dental insurance and related products.

Unitrin, Chicago, is a large property-casualty insurer.

Reserve National, Oklahoma City, reported $3.1 million in net income for 2009 on $127 million in earned premiums.

Reserve National has focused mainly on selling accident policies, hospital indemnity policies, Medicare supplement policies and other niche products.

The price of the deal was not immediately available.

Unitrin and Physician Mutual hope to complete the deal by June 30, the companies say.

Reserve National has performed well since Unitrin acquired it in 1998, but “we do not have the scale in health insurance to compete effectively in the years ahead,” Unitrin Chairman Don Southwell says in a statement.