Kemper Sells Service Organization

July 22, 2003

The Long Grove, Ill.-based Kemper Insurance Cos. today announced the sale of its service platform, Kemper Services, to Platinum Equity LLC. The acquisition was closed today following approval by the Illinois Department of Insurance. Financial terms were not disclosed.

As part of the transaction, Platinum Equity acquires Kemper’s property/casualty claim, medical and disability management services and risk and safety consulting business. Kemper Services provides claims management services, disability, integrated return to work and absentee management programs, medical management services, and risk and safety consulting services.

Johnny O. Lopez, executive vice president for mergers and acquisitions at Platinum Equity, said the Kemper Services business represents an important addition to Platinum’s portfolio of “mission-critical services and solutions businesses.”

Platinum Equity announced that Patricia A. Drago, president of Kemper Services, will continue to run the business as president and CEO. Drago joined Kemper in 2000 to lead the company’s Client Services Group, which included Claims, Kemper National Services, Litigation, NATLSCO loss control and Premium Audit. An attorney and one of Business Insurance Magazine’s Top 100 Insurance Women, she previously was president of Crum & Forster Insurance.

A transition team has been assembled and already is working to ensure that the separation from Kemper is seamless to customers, said Rob Joubran, chief operating officer for Platinum Equity.

When the transition is completed, the company’s customer base will include the Kemper Insurance Cos., as it continues to service Kemper run-off claims. Kemper Services will eventually be renamed, and details about the new name and brand image will be announced as the transition unfolds over the next several months.

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