May 14, 2004

Kemper filed its first-quarter 2004 financial statements (LMC financial statement – AMM financial statement) on Thursday, May 13, 2004. The company posted a combined statutory surplus of $163.8 million. Of this amount, $153.6 million represents Lumbermens Mutual Casualty Company’s (LMC) surplus, with the $10.2 million balance posted by American Manufacturers Mutual Insurance Company (AMM). The combined first-quarter surplus is a decline of approximately $48.6 million for year-end 2003 surplus of $212 million.

On an operating basis, Kemper lost approximately $28 million in the first quarter of 2004. Total assets for the organization stood at approximately $4.8 billion, compared to $5.3 billion at the end of 2003.