AM Best Revises Outlooks to Positive; Affirms Credit Ratings of Kemper Corporation, Its Affiliates and Subsidiaries

Business Wire

OLDWICK, N.J.--(BUSINESS WIRE)-- AM Best has revised the outlooks to positive from stable and affirmed the Financial Strength Rating (FSR) of A- (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of “a-” of the property/casualty subsidiaries and affiliated insurance companies of Kemper Corporation (Kemper Corp.) [NYSE: KMPR], collectively referred to as Kemper Property & Casualty Group (Kemper P&C). AM Best also has revised the outlooks to positive from stable and affirmed the FSR of A- (Excellent) and the Long-Term ICRs of “a-” of Kemper Corp.’s life/health subsidiaries, collectively referred to as Kemper Life & Health Group (Kemper L&H). Concurrently, AM Best has revised the outlooks to positive from stable and affirmed the Long-Term ICR of “bbb-” and the Long-Term Issue Credit Ratings (Long-Term IR) of Kemper Corp., the ultimate parent, headquartered in Chicago, IL. (See below for a detailed listing of the companies and Credit Ratings [ratings].) AM Best also has revised the outlooks to positive from stable and affirmed the Long-Term ICR and the Long-Term IR of “bbb-” of Infinity Property and Casualty Corporation (Infinity) (headquartered in Birmingham, AL). See below for a detailed listing of all companies and ratings.

The Kemper P&C ratings reflect its balance sheet strength, which AM Best categorizes as very strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management (ERM). Kemper P&C’s rating affirmations are attributable to its strongest level of risk-adjusted capitalization, favorable operating results and established position in the nonstandard auto market.

The Kemper L&H ratings reflect its balance sheet strength, which AM Best categorizes as very strong, as well as its adequate operating performance, neutral business profile and appropriate ERM. Kemper L&H’s ratings reflect its risk-adjusted capitalization, which is at the strongest level, favorable capital-to-liability ratio, and a steady, meaningful and diverse source of earnings to Kemper Corp. Kemper L&H offers a broad array of products including basic life insurance, final expense, limited accident and health benefits and other supplemental products. The revision in outlooks to positive for Kemper L&H follows the revision in outlook for Kemper Corp.

The positive outlooks reflect AM Best’s expectation that the integration of Infinity will continue to enhance the financial strength of the organization and strengthen its position in the marketplace as one of the leading nonstandard auto writers in the United States. AM Best further expects consolidated risk-adjusted capitalization to remain supportive for all ratings.

The outlooks have been revised to positive from stable and the FSR of A- (Excellent) and the Long-Term ICRs of “a-”affirmed for the members of the Kemper Property & Casualty Group:

Trinity Universal Insurance Company
Alpha Property & Casualty Insurance Company
Capitol County Mutual Fire Insurance Company
Charter Indemnity Company
Financial Indemnity Company
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
Kemper Independence Insurance Company
Merastar Insurance Company Mutual Savings Fire 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 outlooks have been revised to positive from stable and the FSR of A- (Excellent) and the Long-Term ICRs of “a-” affirmed for the 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 outlook has been revised to positive from stable and the following Long-Term IR has been affirmed:

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

The outlooks have been revised to positive from stable and the following indicative Long-Term IRs have been affirmed for the shelf registration:

Kemper Corporation—
-- “bbb-” on senior unsecured debt
-- “bb+” on subordinated debt
-- “bb” on preferred stock

The outlook has been revised to positive from stable and the following Long-Term IR has been affirmed:

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 AM 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 AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best’s Credit Ratings. For information on the proper media use of Best’s Credit Ratings and AM Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and AM Best Rating Action Press Releases.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in New York, London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.