Kemper Announces Retirement of President and COO

December 31, 2002

The Kemper Insurance Companies announced that its president and chief operating officer, William Smith, has decided to retire effective year-end. An Office of the Chairman has been created to help lead the company.

“We thank Bill for the contributions he has made to the company during his six years with us,” Kemper chairman and CEO David Mathis said.

Mathis will postpone his own retirement to continue as Kemper’s chairman and CEO for the foreseeable future. The chief operating officer position will remain vacant for the time being. Mathis has formed an Office of the Chairman to focus on strategic direction and ongoing operations issues, effective immediately.

Joining Mathis in the Office of the Chairman are: Dennis Brand, senior vice president and chief risk officer, Patricia Drago, executive vice president and leader of Kemper’s Client Services Group, William Hickey, executive vice president and chief financial officer, Robert Lindemann, senior vice president and president of American Manufacturers’ Mutual Insurance Company and Gary Tully, senior vice president and president of Kemper Financial Protection and Kemper International.

“This is an outstanding team of strategic thinkers with strong leadership skills, broad industry experience and a focus on profitability and customer service,” Mathis added. “I have confidence in them and their ability to assist me in running the company.”

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