Lumbermens Mutual Casualty Cos

Standard & Poor’s has affirmed all outstanding interactive ratings on Lumbermens Mutual Casualty Cos. (the Kemper Insurance Cos., collectively Kemper). The outlook is stable.

Kemper occupies a strong business position as one of the top five players in the workers’ compensation market. Kemper has continued to report weak operating results despite management’s ongoing efforts to realign the book of business to focus on bottom-line profitability in recent years. Although some of these efforts are beginning to affect operating performance, statutory earnings will continue to be weak until 2002.