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KEMPER CORP. EXPECTS TO REPORT LOSS FOR FOURTH QUARTER 1992 AND YEAR

 LONG GROVE, Ill., Feb. 5 /PRNewswire/ -- Kemper Corp. (NYSE: KEM) announced today that it expects to report late next week a net loss for the fourth quarter of 1992 and the full year primarily due to an estimated $265 million increase in the company's provision for real estate-related losses. The estimated after-tax effect of this charge is $180 million, or $3.70 per share. The provision includes both additions to reserves on loans and write-downs of certain assets transferred to real estate owned.
 The company also announced it would report significantly lower operating earnings for the year and an operating loss for the quarter, primarily due to real estate operating losses and the adoption of SFAS 106, "Accounting for Postretirement Benefits Other than Pensions." Also contributing to the lower operating earnings for the year were increased catastrophe losses in the reinsurance segment, including additions to the previously announced impact of Hurricanes Andrew and Iniki, as well as litigation, tax and severance charges within the securities brokerage segment.
 "Kemper's asset management, risk management and property-casualty businesses performed well in 1992. These gains, however, were outweighed by disappointing performance in our other segments," said David B. Mathis, chairman and chief executive officer of Kemper Corp. "To improve profitability, we've taken added steps to reduce expenses within our life insurance and securities brokerage businesses."
 Mathis said the increase in Kemper's provision for real estate- related losses primarily reflects the company's fourth-quarter decision to reserve for its estimates of the entire current deficiency on its loans without regard to credit from values available from other projects, collateral or guarantees.
 "The reserve for the entire current deficiency prudently recognizes the effect of the depression in the real estate markets, which has reduced the number of projects providing positive support to the portfolio," Mathis said. "This move at this time reflects the increased intensity the company is applying to its real estate-related portfolio in this economic environment."
 Over the first three quarters of 1992, the company added $64.6 million in the aggregate to its provision for real estate-related losses. If there is further deterioration in the real estate markets in which the company's portfolio is located, the company will have to consider subsequent additions to its provision.
 "It also is important to note that most of the reserves and write- downs do not affect our insurance companies," Mathis added. "Our life companies' statutory capital ratios are solid, and the companies are positioned for growth."
 Kemper adopted SFAS 106 effective Jan. 1, 1992. The one-time effect of this change in accounting principle is a $27.5 million, or $.56 per share, after-tax charge to 1992 operating earnings.
 Kemper Corp. is a nonoperating holding company with subsidiaries in asset management, life insurance, securities brokerage, reinsurance, risk management services and property-casualty insurance.
 -0- 2/5/93
 /CONTACT: Janice Kalmar, 708-540-4465, or Ira Nathanson, 708-540-4463, both of Kemper/
 (KEM)


CO: Kemper Corp. ST: Illinois IN: INS SU: ERP

GK -- NY064 -- 3696 02/05/93 16:45 EST
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Publication:PR Newswire
Date:Feb 5, 1993
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