Kemper Corporation

Life Insurance Company

In a highly publicized battle, Kemper Corporation became the acquisition target of two large financial institutions, both of which ultimately failed in their attempts to purchase the company. IP, recognizing this timely opportunity to purchase the wounded but still valuable franchise of Kemper, approached Zurich Insurance to propose a joint bid for the company. The result was that in January 1996, IP, in partnership with Zurich Insurance, completed the purchase of Kemper, which, through its subsidiaries, Federal Kemper Life Assurance Company (FKLA), Kemper Investors Life Insurance Company (KILICO) and other subsidiaries, was a leading provider of life insurance and retirement savings products. FKLA was one of the industry's largest writers of term life insurance, selling primarily low-cost, high-face-amount term insurance along with universal life and fixed annuities. KILICO primarily sold variable and fixed annuities to individuals, as well as school districts and municipalities.