March 8, 2004
Kemper filed its year-end 2003 financial statements
(2003
LMC financial statement – 2003
AMM financial statement) on Monday, March 1, 2004. The company
posted a combined statutory surplus of $212 million. Of this amount,
$202 million represents Lumbermens Mutual Casualty Company’s
(LMC) surplus, which takes into account a reinsurance transaction
completed in 2003 with its affiliate, American Manufacturers Mutual
Insurance Company (AMM). The $10 million balance of the combined
surplus was posted by AMM. Absent accounting allowances approved
by the Illinois Department of Insurance, year-end 2003 surplus would
have been negative. Further detail about the accounting allowances
can be found in the footnotes to the financial statements.
Combined surplus at year-end 2002 was $745 million
after recognition of certain adjustments made by KPMG as part of
their annual audit.
On an operating basis, Kemper lost approximately
$674 million in 2003, compared to a loss of approximately $312 million
in 2002. Total assets for the organization were approximately $5.3
billion at year-end 2003, compared to approximately $8.0 billion
one year earlier.
The company is expected to submit a run-off plan
to the Ill. Department of Insurance later this month.
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