A.M. Best Maintains Under Review Status with Developing Implications for Kemper Corporation, Its Affiliates and Subsidiaries Following Acquisition of Infinity Property and Casualty Corporation

A.M. Best has maintained the under review status with developing
implications for the Long-Term Issuer Credit Rating (Long-Term ICR) of
“bbb-” and the Long-Term Issue Credit Ratings (Long-Term IR) of Kemper
Corporation (Kemper Corp.) [NYSE:KMPR], as well as for the Long-Term
ICRs and Financial Strength Ratings (FSRs) of its property/casualty and
life/health operating subsidiaries, following the close of the
acquisition of Infinity Property and Casualty Corporation (Infinity)
(headquartered in Birmingham, AL).

Concurrently, A.M. Best has maintained the under review status with
negative implications for the Long-Term ICR of “bbb” of Infinity, as
well as for the FSR of A (Excellent) and the Long-Term ICR of “a” of its
operating subsidiaries, collectively referred to as the Infinity
Property & Casualty Group. (See below for a detailed listing of
the companies.)

A.M. Best placed all the Credit Ratings (ratings) under review on Feb.
15, 2018. At that time, A.M. Best indicated that the ratings would
remain under review until greater insight was gained into the overall
impact of the merger on the group’s business profile, operating
performance and levels of risk-adjusted capitalization.

As noted above, while the transaction closed on July 2, 2018, A.M.
Best’s review of the impact of the transaction is continuing. A.M. Best
will monitor developments and take rating action as conditions warrant.

The FSR of A- (Excellent) and the Long-Term ICRs of “a-” remain under
review with developing implications for the following members of the Kemper
Property & Casualty Group:

The FSR of A- (Excellent) and the Long-Term ICRs of “a-” remain under
review with developing implications for the following members of Kemper
Life & Health Group:

The following Long-Term IR remains under review with developing
implications:

Kemper Corporation—

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

— “bb+” on $150 million 7.375% subordinated debentures, due 2054

The following indicative Long-Term IRs for securities available under
the shelf registration remain under review with developing implications:

Kemper Corporation—

— “bbb-” on senior unsecured debt

— “bb+” on subordinated debt

— “bb” on preferred stock

The FSR of A (Excellent) and the Long-Term ICRs of “a” remains under
review with negative implications for the following members of Infinity
Property & Casualty Group:

The following Long-Term IR remains under review with negative
implications:

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

A.M. Best is the world’s oldest and most authoritative insurance
rating and information source. For more information, visit www.ambest.com.

Copyright © 2018 by A.M. Best Rating Services, Inc. and/or its
affiliates. ALL RIGHTS RESERVED.

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