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KEMPER CORPORATION REACHES AGREEMENTTO SELL FEDERAL KEMPER INSURANCE COMPANY

 LONG GROVE, Ill., Nov. 23 /PRNewswire/ -- Kemper Corporation (NYSE: KEM) announced today it has signed a definitive agreement to sell Federal Kemper Insurance Company to Anthem P&C Holdings, Inc., a subsidiary of The Associated Group. The agreement calls for Kemper Corporation to receive total consideration of $105 million, including a $5 million dividend from Federal Kemper Insurance Company's 1993 earnings.
 "This agreement culminates our efforts to transform Kemper Corporation into a focused financial services company," said David B. Mathis, chairman and chief executive officer of Kemper Corporation. "We are now able to direct our full energies to positioning our company for the future by growing our core asset management, life insurance and securities brokerage businesses."
 The transaction, which is expected to be finalized by year-end, completes Kemper Corporation's exit from the property-casualty insurance business. Completion of the sale is subject to regulatory approval. On Aug. 31, Kemper sold its other property-casualty company, Economy Fire & Casualty Company, to The St. Paul Companies.
 "Federal Kemper Insurance Company is a high quality underwriter with a successful track record. I'm pleased Associated plans to make it the leading company in its new personal lines property-casualty subsidiary. This should allow our former subsidiary the opportunity to prosper under the direction of an organization that is committed to the property- casualty business," Mathis said.
 Federal Kemper Insurance Company, based in Decatur, Ill., is a regional insurer that writes mostly personal auto and homeowners business through independent agents and brokers. It ranks among the top 150 auto and homeowners insurers nationally.
 Based in Indianapolis, The Associated Group is a $3.3 billion diversified insurance and financial services company doing business across the United States.
 Kemper Corporation is a nonoperating holding company with principal subsidiaries in asset management, life insurance and securities brokerage.
 -0- 11/23/93
 /CONTACT: Janice Kalmar, 708-320-4465 or Ira Nathanson, 708-320-4463, both of Kemper Corporation Communications Department/


CO: Kemper Corporation; Anthem P&C Holdings, Inc. ST: Illinois IN: FIN SU:

TM -- NY080 -- 7442 11/23/93 17:33 EST
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Publication:PR Newswire
Date:Nov 23, 1993
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