News Details

Unitrin, Inc. Reports Significantly Higher Second Quarter Financial Results and Highlights

August 3, 2009

CHICAGO--(BUSINESS WIRE)-- Unitrin, Inc. (NYSE: UTR) reported today net income of $41.9 million ($0.67 per unrestricted common share) for the second quarter of 2009, compared to net income of $11.0 million ($0.18 per unrestricted common share) for the second quarter of 2008. Net Income from continuing operations was $41.4 million ($0.66 per unrestricted common share) for the second quarter of 2009, compared to $17.0 million ($0.27 per unrestricted common share) for the second quarter of 2008.

Highlights

    --  Second quarter 2009 net income of $41.9 million, including restructuring
        costs of $5.0 million after tax.
    --  Debt to total capitalization ratio declines to 24.9% as revolving credit
        borrowings repaid in full.
    --  Second quarter 2009 segment operating profit of $70.0 million, compared
        to $12.5 million in 2008.
    --  Fireside Bank reports small profit for the quarter; exit plan on target
        and Tier 1 capital ratio increases to 16.7%.

Don Southwell, Unitrin's President and Chief Executive Officer, commented, "We are pleased with our second quarter operating results and with the strengthening of our balance sheet. Operating results improved in each of our business segments compared to the prior year. Our plan to exit the automobile finance business and recover the capital that we have invested in Fireside Bank is going well. We continue the process of reducing costs in all of our businesses. Year-to-date restructuring expense of $16.2 million before tax will reduce our on-going costs in the future. Net impairment losses recognized in earnings narrowed to $9.7 million in the second quarter of 2009, down significantly from the $25.0 million of losses recognized in the first quarter of 2009. Our Kemper and Life and Health Insurance segments both continued to post strong operating results."

Total Revenues

Total revenues were $763.3 million for the second quarter of 2009, compared to $745.7 million for the second quarter of 2008. Total revenues increased due primarily to higher earned premiums, higher net investment income and lower net impairment losses, partially offset by lower automobile finance revenues and lower net realized gains on sales of investments.

Earned premiums were $626.3 million and $596.3 million for the second quarters of 2009 and 2008, respectively, an increase of $30.0 million. Earned premiums increased significantly in the Unitrin Direct and Unitrin Specialty segments, with the Kemper segment posting a modest increase and the Life and Health Insurance segment posting a modest decrease. Automobile finance revenues decreased by $14.7 million for the second quarter of 2009, compared to the same period in 2008, as Fireside Bank continued to execute its plan to exit the automobile finance business.

Net investment income increased by $13.0 million for the three months ended June 30, 2009, compared to the same period in 2008, due primarily to higher investment income from investments in limited partnerships and limited liability companies, partially offset by lower dividend income from investments in equity securities. Net investment income from limited partnerships and limited liability companies increased due primarily to an increase in yield, partially offset by a lower level of investments. Dividend income from investments in equity securities decreased due primarily to sales of the vast majority of the Company's investments in Northrop Grumman common stock and other publicly-traded common stocks during 2008.

Net realized gains on sales of investments were $4.4 million for the second quarter of 2009, compared to $23.3 million for the same period in 2008. Net realized gains on sales of investments for the second quarter of 2008 included gains of $13.6 million from the sales of a portion of the Company's investment in Baker Hughes common stock. (See "Net Realized Gains on Sales of Investments" chart below for additional information.) The Company cannot anticipate when or if similar net realized gains on sales of investments may occur in the future.

Net impairment losses recognized in earnings were $9.7 million for the second quarter of 2009, compared to $18.3 million for the same period in 2008. Net impairment losses recognized in earnings include losses of $7.3 million and $14.3 million for the three months ended June 30, 2009 and 2008, respectively, related to investments in preferred and common stocks of financial institutions. (See "Net Impairment Losses Recognized in Earnings" chart below for additional information.) The Company cannot anticipate when or if similar net impairment losses may occur in the future.

Quarterly Segment Results

Unitrin is engaged, through its subsidiaries, in the property and casualty insurance, life and health insurance and automobile finance businesses. The Company conducts its continuing operations through five operating segments: Kemper, Unitrin Specialty, Unitrin Direct, Life and Health Insurance and Fireside Bank.

NOTE: The Company uses the registered trademark, "Kemper," under license, for personal lines insurance only, from Lumbermens Mutual Casualty Company ("Lumbermens"), which is not affiliated with the Company. Lumbermens continues to use the name, "Kemper Insurance Companies," in connection with its operations, which are distinct from, and not to be confused with, Unitrin's Kemper business segment.

Kemper

Earned premiums in the Kemper segment increased by $5.9 million for the second quarter of 2009, compared to the same period in 2008, due primarily to higher volume and higher average premium rates on homeowners insurance and higher volume on automobile insurance, partially offset by lower average premium rates on automobile insurance.

Operating profit in the Kemper segment increased by $19.4 million for the second quarter of 2009, compared to the same period in 2008, due primarily to lower incurred losses and loss adjustment expenses ("LAE"). Incurred losses and LAE decreased by $13.0 million for the second quarter of 2009, compared to the same period in 2008, due primarily to lower catastrophe losses and LAE, partially offset by higher frequency of losses on automobile insurance.

Unitrin Specialty

Earned premiums in the Unitrin Specialty segment increased by $12.3 million for the second quarter of 2009, compared to the same period in 2008, due primarily to higher volume of personal automobile insurance, partially offset by lower volume of commercial automobile insurance. Operating profit in the Unitrin Specialty segment increased by $3.6 million for the second quarter of 2009, compared to the same period in 2008, due primarily to lower insurance expenses as a percentage of earned premiums and higher net investment income.

Unitrin Direct

Earned premiums in the Unitrin Direct segment increased by $20.2 million for the second quarter of 2009, compared to the same period in 2008, due primarily to the impact of the Direct Response acquisition, partially offset by lower volume of insurance. The Unitrin Direct segment reported an operating loss of $10.5 million for the second quarter of 2009, compared to an operating loss of $12.8 million for the same period of 2008. Results improved due primarily to lower incurred losses and LAE and lower insurance expenses as a percentage of earned premiums, partially offset by an operating loss of $10.0 million related to the Direct Response acquisition. Operating Loss for the Unitrin Direct segment included restructuring costs of $4.6 million before tax for the second quarter of 2009.

Life and Health Insurance

Earned premiums in the Life and Health Insurance segment decreased by $8.4 million for the second quarter of 2009, compared to the same period in 2008, due primarily to lower volume, partially offset by higher average premium rates on accident and health insurance products.

Operating profit in the Life and Health Insurance segment increased by $10.4 million for the second quarter of 2009, compared to the same period in 2008, due primarily to higher net investment income, lower catastrophe losses and LAE, net of reinsurance, on property insurance sold by the Life and Health Insurance segment's career agents and lower insurance expenses, partially offset by higher policyholders' benefits as a percentage of earned premiums on life insurance.

Fireside Bank

As previously announced, on March 24, 2009, Fireside Bank suspended all new lending activity and ceased opening new certificate of deposit accounts as part of a plan to exit the automobile finance business. The exit plan envisions an orderly wind-down of Fireside Bank's operations over the next several years. Fireside Bank continues to collect outstanding loan balances and make interest payments and redemptions on outstanding certificates of deposits in the ordinary course of business.

While in its early stages, the exit plan thus far has met the Company's expectations. Net Automobile Loan Receivables Outstanding declined to $995.4 million at June 30, 2009 from $1,125.2 million at March 31, 2009, while Certificates of Deposits declined to $909.5 million at June 30, 2009 from $1,054.4 million at March 31, 2009. Fireside Bank's cash and investments totaled $198.8 million at June 30, 2009, or 21.9% of Certificates of Deposits, compared to $204.7 million, or 19.4% of Certificates of Deposits at March 31, 2009. The Company expects that the Fireside Bank segment will report approximately break-even results for the remainder of 2009. Fireside Bank's ratio of Tier 1 capital to total average assets increased from 15.6% at March 31, 2009 to 16.7% at June 30, 2009. The Company expects that Fireside Bank's ratio of Tier 1 capital to total average assets will continue to increase for the remainder of 2009. Fireside Bank has no loans outstanding that are secured by real estate and has not sold or securitized any portion of its loan portfolio.

Automobile finance revenues for the second quarter of 2009 decreased by $14.7 million, compared to the same period in 2008, due primarily to lower levels of loans outstanding resulting from the exit plan. Fireside Bank reported operating profit of $0.3 million for the second quarter of 2009, compared to an operating loss of $21.5 million for the same period in 2008. The provision for loan losses was $15.7 million for the second quarter of 2009, compared to $46.0 million for the second quarter of 2008.

Consolidated results for the three and six months ended June 30, 2009 and 2008 are as follows:

                                  Three Months Ended    Six Months Ended

(Dollars and Shares in Millions,  June 30,   June 30,   June 30,     June 30,

Except Per Share Amounts)         2009       2008       2009         2008

Revenues:

Earned Premiums                   $ 626.3    $ 596.3    $ 1,238.8    $ 1,172.2

Automobile Finance Revenues         47.4       62.1       100.3        125.5

Net Investment Income               94.4       81.4       141.4        127.3

Other Income                        0.5        0.9        0.9          1.4

Net Realized Gains on Sales of      4.4        23.3       5.2          38.0
Investments

Other-than-temporary Impairment
Losses:

Total Other-than-temporary          (10.3 )    (18.3 )    (35.3   )    (26.8   )
Impairment Losses

Portion of Losses Recognized in     0.6        -          0.6          -
Other Comprehensive Income

Net Impairment Losses Recognized    (9.7  )    (18.3 )    (34.7   )    (26.8   )
in Earnings

Total Revenues                      763.3      745.7      1,451.9      1,437.6

Expenses:

Policyholders' Benefits and
Incurred

Losses and Loss Adjustment          453.8      448.2      893.2        858.9
Expenses

Insurance Expenses                  183.8      182.8      366.7        355.1

Automobile Finance Expenses         36.0       69.6       82.4         123.5

Interest Expense on Certificates    11.9       15.0       24.5         30.7
of Deposits

Goodwill                            1.5        -          1.5          -

Interest and Other Expenses         16.8       15.0       32.0         31.7

Total Expenses                      703.8      730.6      1,400.3      1,399.9

Income from Continuing
Operations before

Income Taxes and Equity in Net      59.5       15.1       51.6         37.7
Income (Loss) of Investee

Income Tax Benefit (Expense)        (16.8 )    0.8        (16.4   )    (3.3    )

Income from Continuing
Operations before

Equity in Net Income (Loss) of      42.7       15.9       35.2         34.4
Investee

Equity in Net Income (Loss) of      (1.3  )    1.1        (0.1    )    3.3
Investee

Income from Continuing              41.4       17.0       35.1         37.7
Operations

Discontinued Operations:

Income (Loss) from Discontinued

Operations before Income Taxes      0.9        (1.6  )    2.1          (11.8   )

Income Tax Benefit (Expense)        (0.4  )    (4.4  )    (0.9    )    0.3

Income (Loss) from Discontinued     0.5        (6.0  )    1.2          (11.5   )
Operations

Net Income                        $ 41.9     $ 11.0     $ 36.3       $ 26.2

Basic Income Per Share from
Continuing Operations:

Restricted Common Stock           $ 0.62     $ 0.26     $ 0.59       $ 0.66

Unrestricted Common Stock         $ 0.66     $ 0.27     $ 0.56       $ 0.59

Basic Net Income Per Share:

Restricted Common Stock           $ 0.62     $ 0.16     $ 0.61       $ 0.48

Unrestricted Common Stock         $ 0.67     $ 0.18     $ 0.58       $ 0.41

Diluted Income Per Share from
Continuing Operations:

Restricted Common Stock           $ 0.62     $ 0.26     $ 0.59       $ 0.66

Unrestricted Common Stock         $ 0.66     $ 0.27     $ 0.56       $ 0.59

Diluted Net Income Per Share:

Restricted Common Stock           $ 0.62     $ 0.16     $ 0.61       $ 0.48

Unrestricted Common Stock         $ 0.67     $ 0.17     $ 0.58       $ 0.41

Dividends Paid Per Share          $ 0.20     $ 0.47     $ 0.67       $ 0.94



Business segment revenues for the three and six months ended June 30, 2009 and 2008 are as follows:

                                  Three Months Ended    Six Months Ended

                                  June 30,   June 30,   June 30,     June 30,

(Dollars in Millions)             2009       2008       2009         2008

Revenues:

Segment Revenues:

Kemper:

Earned Premiums                   $ 235.3    $ 229.4    $ 466.2      $ 459.0

Net Investment Income               12.5       10.9       14.8         15.7

Other Income                        0.1        0.1        0.2          0.2

Total Kemper                        247.9      240.4      481.2        474.9

Unitrin Specialty:

Earned Premiums                     134.7      122.4      267.3        237.2

Net Investment Income               6.3        4.8        7.4          7.0

Other Income                        0.1        0.1        0.1          0.1

Total Unitrin Specialty             141.1      127.3      274.8        244.3

Unitrin Direct:

Earned Premiums                     94.0       73.8       176.6        145.9

Net Investment Income               5.6        2.6        6.4          3.7

Other Income                        0.1        0.1        0.1          0.2

Total Unitrin Direct                99.7       76.5       183.1        149.8

Life and Health Insurance:

Earned Premiums                     162.3      170.7      328.7        330.1

Net Investment Income               65.3       57.4       106.5        90.0

Other Income                        0.2        0.5        0.5          0.7

Total Life and Health Insurance     227.8      228.6      435.7        420.8

Fireside Bank:

Interest, Loan Fees and Earned      46.4       60.9       98.2         122.7
Discounts

Other Automobile Finance            1.0        1.2        2.1          2.8
Revenues

Automobile Finance Revenues         47.4       62.1       100.3        125.5

Net Investment Income               0.8        1.0        1.7          2.8

Total Fireside Bank                 48.2       63.1       102.0        128.3

Total Segment Revenues              764.7      735.9      1,476.8      1,418.1

Unallocated Dividend Income         0.4        3.5        0.7          6.8

Net Realized Gains on Sales of      4.4        23.3       5.2          38.0
Investments

Net Impairment Losses Recognized    (9.7  )    (18.3 )    (34.7   )    (26.8   )
in Earnings

Other                               3.5        1.3        3.9          1.5

Total Revenues                    $ 763.3    $ 745.7    $ 1,451.9    $ 1,437.6



Business segment operating profit (loss) for the three and six months ended June 30, 2009 and 2008 is as follows:

                                     Three Months Ended    Six Months Ended

                                     June 30,   June 30,   June 30,   June 30,

(Dollars in Millions)                2009       2008       2009       2008

Segment Operating Profit (Loss):

Kemper                               $ 21.7     $ 2.3      $ 34.7     $ 11.0

Unitrin Specialty                      10.8       7.2        10.8       10.2

Unitrin Direct                         (10.5 )    (12.8 )    (19.0 )    (22.7 )

Life and Health Insurance              47.7       37.3       71.1       61.7

Fireside Bank                          0.3        (21.5 )    (4.9  )    (25.9 )

Total Segment Operating Profit         70.0       12.5       92.7       34.3

Unallocated Dividend Income            0.4        3.5        0.7        6.8

Net Realized Gains on Sales of         4.4        23.3       5.2        38.0
Investments

Net Impairment Losses Recognized in    (9.7  )    (18.3 )    (34.7 )    (26.8 )
Earnings

Other Expense, Net                     (5.6  )    (5.9  )    (12.3 )    (14.6 )

Income from Continuing Operations
before Income

Taxes and Equity in Net Income       $ 59.5     $ 15.1     $ 51.6     $ 37.7
(Loss) of Investee



Business segment net income (loss) for the three and six months ended June 30, 2009 and 2008 is as follows:

                                     Three Months Ended   Six Months Ended

                                     June 30,  June 30,   June 30,   June 30,

(Dollars in Millions)                2009      2008       2009       2008

Segment Net Income (Loss):

Kemper                               $ 16.1    $ 3.7      $ 26.5     $ 11.5

Unitrin Specialty                      8.0       5.7        9.0        8.6

Unitrin Direct                         (6.1 )    (7.8  )    (11.0 )    (13.7 )

Life and Health Insurance              31.0      24.2       46.0       39.2

Fireside Bank                          0.2       (12.6 )    (9.7  )    (15.2 )

Total Segment Net Income               49.2      13.2       60.8       30.4

Net Income (Loss) From:

Unallocated Dividend Income            0.3       3.0        0.6        5.9

Net Realized Gains on Sales of         2.9       15.2       3.4        24.7
Investments

Net Impairment Losses Recognized in    (6.4 )    (11.9 )    (22.6 )    (17.4 )
Earnings

Other Expense, Net                     (3.3 )    (3.6  )    (7.0  )    (9.2  )

Income from Continuing Operations
Before

Equity in Net Income (Loss) of         42.7      15.9       35.2       34.4
Investee

Equity in Net Income (Loss) of         (1.3 )    1.1        (0.1  )    3.3
Investee

Income from Continuing Operations    $ 41.4    $ 17.0     $ 35.1     $ 37.7



The components of Net Realized Gains on Sales of Investments for the three and six months ended June 30, 2009 and 2008 are as follows:

                                        Three Months Ended  Six Months Ended

                                        June 30,  June 30,  June 30,  June 30,

(Dollars in Millions)                   2009      2008      2009      2008

Fixed Maturities:

 Gains on Dispositions                  $ 3.0     $ 4.0     $ 3.4     $ 4.5

 Losses on Dispositions                   (0.1 )    (1.1 )    (0.1 )    (1.2 )

Equity Securities:

 Gains on Dispositions                    1.0       23.3      1.5       39.4

 Losses on Dispositions                   -         (4.3 )    -         (5.6 )

Real Estate

 Gains on Dispositions                    -         1.5       -         1.5

Other Investments:

 Losses on Dispositions                   -         -         -         (0.2 )

 Net Trading Securities Gains (Losses)    0.5       (0.1 )    0.4       (0.4 )

Net Realized Gains on Sales of          $ 4.4     $ 23.3    $ 5.2     $ 38.0
Investments



The components of Net Impairment Losses Recognized in Earnings for the three and six months ended June 30, 2009 and 2008 were:

                                     Three Months Ended   Six Months Ended

                                     June 30,  June 30,   June 30,   June 30,

(Dollars in Millions)                2009      2008       2009       2008

Fixed Maturities                     $ (5.1 )  $ (1.1  )  $ (26.7 )  $ (1.7  )

Equity Securities                      (4.6 )    (17.2 )    (8.0  )    (25.1 )

Net Impairment Losses Recognized in  $ (9.7 )  $ (18.3 )  $ (34.7 )  $ (26.8 )
Earnings



Unitrin, Inc. and Subsidiaries

Consolidated Balance Sheets

(Dollars in millions, except per share amounts)

                                                        June 30,     Dec. 31,

                                                        2009         2008

                                                        (Unaudited)

Assets:

Investments:

Fixed Maturities at Fair Value (Amortized

Cost: 2009 - $4,229.4; 2008 - $4,174.4)                 $ 4,247.8    $ 4,135.9

Equity Securities at Fair Value

(Cost: 2009 - $237.2; 2008 - $255.4)                      227.6        221.8

Investee (Intermec) at Cost Plus Cumulative
Undistributed Earnings

(Fair Value: 2009 - $163.3; 2008 - $168.1)                92.5         102.2

Short-term Investments at Cost which Approximates Fair    563.6        548.6
Value

Other                                                     729.0        714.9

Total Investments                                         5,860.5      5,723.4

Cash                                                      97.2         184.2

Automobile Loan Receivables at Cost (Fair

Value: 2009 - $898.1; 2008 - $1,099.6)                    887.1        1,078.6

Other Receivables                                         670.5        686.5

Deferred Policy Acquisition Costs                         524.4        489.2

Goodwill                                                  331.8        334.6

Current and Deferred Income Taxes                         225.2        201.4

Other Assets                                              128.2        120.9

Total Assets                                            $ 8,724.9    $ 8,818.8

Liabilities and Shareholders' Equity:

Insurance Reserves:

Life and Health                                         $ 3,005.1    $ 2,972.6

Property and Casualty                                     1,299.2      1,268.7

Total Insurance Reserves                                  4,304.3      4,241.3

Certificates of Deposits at Cost

(Fair Value: 2009 - $952.1; 2008 - $1,148.7)              909.5        1,110.8

Unearned Premiums                                         764.8        733.5

Liabilities for Income Taxes                              15.4         68.2

Notes Payable at Amortized Cost (Fair Value: 2009 -       561.1        560.8
$441.0; 2008 - $433.9)

Accrued Expenses and Other Liabilities                    476.2        455.6

Total Liabilities                                         7,031.3      7,170.2

Shareholders' Equity:

Common Stock, $0.10 par value, 100 Million Shares
Authorized;

62,392,453 Shares Issued and Outstanding at June 30,
2009 and

62,314,503 Shares Issued and Outstanding at December      6.2          6.2
31, 2008

Paid-in Capital                                           766.6        764.7

Retained Earnings                                         983.2        985.8

Accumulated Other Comprehensive Loss                      (62.4   )    (108.1  )

Total Shareholders' Equity                                1,693.6      1,648.6

Total Liabilities and Shareholders' Equity              $ 8,724.9    $ 8,818.8



This press release may contain or incorporate by reference information that includes or is based on forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements give expectations or forecasts of future events. The reader can identify these statements by the fact that they do not relate strictly to historical or current facts. They use words such as "believe(s)," "goal(s)," "target(s)," "estimate(s)," "anticipate(s)," "forecast(s)," "project(s)," "plan(s)," "intend(s)," "expect(s)," "might," "may" and other words and terms of similar meaning in connection with a discussion of future operating or financial performance. Forward-looking statements, in particular, include statements relating to future actions, prospective services or products, future performance or results of current and anticipated services or products, sales efforts, expenses, the outcome of contingencies such as legal proceedings, trends in operations and financial results.

Any or all forward-looking statements may turn out to be wrong, and, accordingly, readers are cautioned not to place undue reliance on such statements, which speak only as of the date of this press release. Forward-looking statements can be affected by inaccurate assumptions or by known or unknown risks and uncertainties. Many such factors will be important in determining the Company's actual future results. These statements are based on current expectations and the current economic environment. They involve a number of risks and uncertainties that are difficult to predict. These statements are not guarantees of future performance; actual results could differ materially from those expressed or implied in the forward-looking statements.

Among the general factors that could cause actual results to differ materially from estimated results are:

-- Changes in general economic conditions, including performance of financial markets, interest rates, unemployment rates and fluctuating values of particular investments held by the Company;

-- Heightened competition, including, with respect to pricing, entry of new competitors and the development of new products by new and existing competitors;

-- The number and severity of insurance claims (including those associated with catastrophe losses) and their impact on the adequacy of loss reserves;

-- The impact of inflation on insurance claims, including, but not limited to, the effects attributed to scarcity of resources available to rebuild damaged structures, including labor and materials and the amount of salvage value recovered for damaged property;

-- Orders, interpretations or other actions by regulators that impact the reporting, adjustment and payment of claims;

-- Changes in the pricing or availability of reinsurance;

-- Changes in the financial condition of reinsurers and amounts recoverable therefrom;

-- Changes in industry trends and significant industry developments;

-- Regulatory approval of insurance rates, policy forms, license applications and similar matters;

-- Developments related to insurance policy claims and coverage issues including, but not limited to, interpretations or decisions by courts or regulators that may govern or influence insurance policy coverage issues arising with respect to losses incurred in connection with hurricanes and other catastrophes;

-- Governmental actions, including, but not limited to, national health care reform, new laws or regulations or court decisions interpreting existing laws and regulations or policy provisions;

-- Adverse outcomes in litigation or other legal or regulatory proceedings involving Unitrin or its subsidiaries or affiliates;

-- Regulatory, accounting or tax changes that may affect the cost of, or demand for, the Company's products or services;

-- The impact of residual market assessments and assessments for insurance industry insolvencies;

-- Changes in distribution channels, methods or costs resulting from changes in laws or regulations, lawsuits or market forces;

-- Changes in ratings by credit rating agencies, including A.M. Best Co., Inc.;

-- Changes in laws or regulations governing or affecting the regulatory status of industrial banks, such as Fireside Bank, and their parent companies, including minimum capital requirements and restrictions on the non-financial activities and equity investments of companies that acquire control of industrial banks;

-- Changes in the estimated rates of automobile loan receivables net charge-off used to estimate Fireside Bank's reserve for loan losses, including, but not limited to, the impact of changes in the value of collateral held;

-- The degree of success in effecting an orderly wind-down of the operations of Fireside Bank and the recovery of Unitrin's investment in Fireside Bank;

-- The degree of success and costs expended in realizing economies of scale and implementing significant business consolidations and technology initiatives;

-- Increased costs and risks related to data security;

-- Absolute and relative performance of the Company's products or services; and

-- Other risks and uncertainties described from time to time in the Company's filings with the Securities and Exchange Commission ("SEC").

No assurances can be given that the results contemplated in any forward-looking statements will be achieved or will be achieved in any particular timetable. The Company assumes no obligation to publicly correct or update any forward-looking statements as a result of events or developments subsequent to the date of this press release. The reader is advised, however, to consult any further disclosures the Company makes on related subjects in filings made with the SEC.

Unitrin is a financial services company focused on creating shareholder value by providing through its subsidiaries a diverse array of insurance products and services for individuals, families and small businesses.

Among the brands in Unitrin'sProperty and Casualty Insurance businesses are Kemper and Unitrin Specialty, which sell personal and commercial insurance through networks of independent agents, and Unitrin Direct, which sells automobile and homeowners insurance directly to consumers or through employer-sponsored voluntary benefit programs. Unitrin'sLife and Health Insurance businesses bring a high-level of personalized service to their customers. Additional information about Unitrin is available by visiting its website (www.unitrin.com).

 

 

    Source: Unitrin, Inc.
Contact: Unitrin, Inc. Frank J. Sodaro at (312) 661-4930 or via e-mail at investor.relations@unitrin.com