November 14, 2003
News Release

Illinois Insurance Dept. prohibits interest payments on surplus notes

Lumbermens Mutual Casualty Company
$400,000,000 Surplus Notes 9.15% due 2026 (550060AA5/550060AB3)
$200,000,000 Surplus Notes 8.30% due 2037 (550060AC1/550060AE7)
$100,000,000 Surplus Notes 8.45% due 2097 (550060AD9/550060AF4)



FOR IMMEDIATE RELEASE


LONG GROVE, Ill. – Lumbermens Mutual Casualty Company has received a notice from the Director of the Illinois Department of Insurance denying the company’s request to make the December 1, 2003 interest payments on its 8.30 percent surplus notes due December 1, 2037 and its 8.45 percent surplus notes due December 1, 2097 as well as its January 1, 2004 interest payment due on its 9.15 percent surplus notes due July 1, 2026.


Contacts:

Linda Kingman
Kemper Insurance Companies
(847) 320-2410
lkingman@kemperinsurance.com