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A.M. Best Maintains Under Review Status with Developing Implications for Kemper Corporation, Its Affiliates and Subsidiaries Following Acquisition of Infinity Property and Casualty Corporation

July 13, 2018

OLDWICK, N.J.--(BUSINESS WIRE)--Jul 13, 2018--A.M. Best has maintained the under review status with developing implications for the Long-Term Issuer Credit Rating (Long-Term ICR) of “bbb-” and the Long-Term Issue Credit Ratings (Long-Term IR) of Kemper Corporation (Kemper Corp.) [NYSE:KMPR], as well as for the Long-Term ICRs and Financial Strength Ratings (FSRs) of its property/casualty and life/health operating subsidiaries, following the close of the acquisition of Infinity Property and Casualty Corporation (Infinity) (headquartered in Birmingham, AL).

Concurrently, A.M. Best has maintained the under review status with negative implications for the Long-Term ICR of “bbb” of Infinity, as well as for the FSR of A (Excellent) and the Long-Term ICR of “a” of its operating subsidiaries, collectively referred to as the Infinity Property & Casualty Group. (See below for a detailed listing of the companies.)

A.M. Best placed all the Credit Ratings (ratings) under review on Feb. 15, 2018. At that time, A.M. Best indicated that the ratings would remain under review until greater insight was gained into the overall impact of the merger on the group’s business profile, operating performance and levels of risk-adjusted capitalization.

As noted above, while the transaction closed on July 2, 2018, A.M. Best’s review of the impact of the transaction is continuing. A.M. Best will monitor developments and take rating action as conditions warrant.

The FSR of A- (Excellent) and the Long-Term ICRs of “a-” remain under review with developing implications for the following members of the Kemper Property & Casualty Group:

Trinity Universal Insurance Company (Dallas, TX) Alpha Property & Casualty Insurance Company Capitol County Mutual Fire Insurance Company Charter Indemnity Company Financial Indemnity Company Kemper Independence Insurance Company Merastar Insurance Company Mutual Savings Fire Insurance Company Kemper Financial Indemnity Company Old Reliable Casualty Company Response Insurance Company Response Worldwide Direct Auto Insurance Company Response Worldwide Insurance Company Union National Fire Insurance Company United Casualty Insurance Company of America Unitrin Advantage Insurance Company Unitrin Auto and Home Insurance Company Unitrin County Mutual Insurance Company Unitrin Direct Insurance Company Unitrin Direct Property & Casualty Company Unitrin Preferred Insurance Company Unitrin Safeguard Insurance Company Valley Property & Casualty Insurance Company Warner Insurance Company

The FSR of A- (Excellent) and the Long-Term ICRs of “a-” remain under review with developing implications for the following members of Kemper Life & Health Group:

United Insurance Company of America Mutual Savings Life Insurance Company The Reliable Life Insurance Company Union National Life Insurance Company Reserve National Insurance Company

The following Long-Term IR remains under review with developing implications:

Kemper Corporation —

-- “bbb-” on $450 million 4.35% senior unsecured notes, due 2025

-- “bb+” on $150 million 7.375% subordinated debentures, due 2054

The following indicative Long-Term IRs for securities available under the shelf registration remain under review with developing implications:

Kemper Corporation —

-- “bbb-” on senior unsecured debt

-- “bb+” on subordinated debt

-- “bb” on preferred stock

The FSR of A (Excellent) and the Long-Term ICRs of “a” remains under review with negative implications for the following members of Infinity Property & Casualty Group:

Infinity Insurance Company Infinity Assurance Insurance Company Infinity Auto Insurance Company Infinity Casualty Insurance Company Infinity Indemnity Insurance Company Infinity Preferred Insurance Company Infinity Safeguard Insurance Company Infinity Security Insurance Company Infinity Select Insurance Company Infinity Standard Insurance Company Infinity County Mutual Insurance Company

The following Long-Term IR remains under review with negative implications:

Infinity Property and Casualty Corporation —

--“bbb” on $275 million 5% senior unsecured notes, due September 2022

This press release relates to Credit Ratings that have been published on A.M. Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see A.M. Best’s web page. For additional information regarding the use and limitations of Credit Rating opinions, please view . For information on the proper media use of Best’s Credit Ratings and A.M. Best press releases, please view .

A.M. Best is the world’s oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com.

Copyright © 2018 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

View source version on businesswire.com:https://www.businesswire.com/news/home/20180713005462/en/

CONTACT: A.M. Best

Michael T. Venezia, +1-908-439-2200, ext. 5034

Senior Financial Analyst – P/C

michael.venezia@ambest.com

or

Christopher Sharkey, +1-908-439-2200, ext. 5159

Manager, Public Relations

christopher.sharkey@ambest.com

or

Bruno Caron, FSA, MAAA, +1-908-439-2200, ext. 5144

Financial Analyst – L/H

bruno.caron@ambest.com

or

Jim Peavy, +1-908-439-2200, ext. 5644

Director, Public Relations

james.peavy@ambest.com

KEYWORD: UNITED STATES EUROPE NORTH AMERICA NEW JERSEY

INDUSTRY KEYWORD: PROFESSIONAL SERVICES FINANCE INSURANCE

SOURCE: A.M. Best

Copyright Business Wire 2018.

PUB: 07/13/2018 04:02 PM/DISC: 07/13/2018 04:02 PM

http://www.businesswire.com/news/home/20180713005462/en

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