August 24, 2005

Kemper submits six-month financials

LONG GROVE, ILL. – August 24, 2005 – Kemper filed its 2005 six-month financial statements (LMC financial statement - AMM financial statement) for the first six months of 2005 on Monday, August 15. The company posted a combined statutory surplus of $125.1 million. Of this amount, $114.5 million represents Lumbermens Mutual Casualty Company’s (LMC) surplus, with the $10.6 million balance posted by American Manufacturers Mutual Insurance Company (AMM).

Total assets for the organization stood at $3.3 billion, compared to $3.8 billion at the end of 2004. Gross liabilities dropped from $6.8 billion at year-end 2004 to $5.8 billion at June 30, 2005.

The Company expects that its audited financial statements as of December 31, 2004 will be completed in the next few weeks and that the filed second-quarter financial statements already incorporate all material adjustments that will be reflected in the audited financial statements.