Kemper announces delayed audit and expected
FOR IMMEDIATE RELEASE
LONG GROVE, Ill., June
8, 2005 – The Kemper Insurance Companies today announced that
the Illinois Department of Financial and Professional Regulation -
Division of Insurance (DOI) has granted an extension from June 1st
for the filing of the 2004 audited statutory financial statements
as the audit by KPMG LLP, Kemper’s independent auditing firm,
is currently ongoing. Kemper is working closely with KPMG to promptly
complete the audit.
Statutory surplus to be reflected in Kemper’s audited financial
statements as of December 31, 2004 is currently expected to be materially
less than the approximately $182 million that was reflected on Kemper's
combined 2004 unaudited statutory statements. This is primarily due
to potential reductions in reinsurance recoverables (including increases
in related payables), and adverse changes in asset valuations.
In addition, Kemper currently expects that certain other adjustments
negatively affecting surplus may be recorded in the second quarter
of 2005. Although there is uncertainty as to amount because neither
the audit nor the second quarter is yet completed, Kemper expects
that its combined surplus at June 30, 2005 will be approximately
Kemper continues to operate under the previously filed run-off plan
as supplemented from time to time and approved by the DOI.
For more information about Kemper, visit its website at www.kemperinsurance.com