August 31, 2005
News Release

Kemper files its 2004 audited statutory financial statements


LONG GROVE, ILL. – August 31, 2005 – Kemper announced today that it filed with Illinois and other state insurance regulatory agencies its audited statutory financial statements at and for the years ended December 31, 2004 and 2003. The organization posted a combined statutory surplus of $72.4 million at December 31, 2004. Of this amount, $62.0 million represented the consolidated surplus of Lumbermens Mutual Casualty Company’s (LMC), with the $10.4 million balance posted by American Manufacturers Mutual Insurance Company (AMM). The audited year-end 2004 combined statutory surplus reflected a decline of approximately $110 million from the surplus reported in the unaudited year-end 2004 financial statements previously filed by Kemper.

As previously announced, Kemper filed its second-quarter 2005 unaudited statutory financial statements on August 15, 2005. The filed second-quarter 2005 financial statements already incorporated all material adjustments reflected in the audited 2004 financial statements. Kemper reported combined statutory surplus of $125.1 million at June 30, 2005.


    Eric Epperson
    Kemper Insurance Companies