Unitrin, Inc. Reports Strong Third Quarter Results, Net Income Increases by Over $107 Million

http://www.businesswire.com/news/home/20091102006512/en

CHICAGO--(Business Wire)--
Unitrin, Inc. (NYSE: UTR) reported today net income of $62.1 million ($1.00 per
unrestricted common share) for the third quarter of 2009, compared to a net loss
of $45.2 million ($0.72 per unrestricted common share) for the third quarter of
2008, an improvement of $107.3 million. Net Income from continuing operations
was $61.0 million ($0.98 per unrestricted common share) for the third quarter of
2009, compared to a net loss from continuing operations of $49.6 million ($0.79
per unrestricted common share) for the third quarter of 2008.

Highlights

* Third quarter 2009 net income of $62.1 million; book value per share increases
to $30.36.
* Debt to total capitalization ratio declines to 22.9%; new $245 million,
three-year revolving credit agreement put in place.
* Third quarter 2009 segment operating profit of $88.7 million, compared to
third quarter 2008 loss of $36.2 million.
* Fireside Bank reports small profit for the quarter; exit plan on target and
Tier 1 capital ratio increases to 19.3%.
* Unitrin Direct achieves break-even results

Don Southwell, Unitrin`s President and Chief Executive Officer, commented, "We
are very pleased with our strong third quarter operating results and with the
continued strengthening of our balance sheet. Operating results improved in each
of our business segments compared to the prior year and improved on a sequential
quarter basis in all of our businesses, except Unitrin Specialty where results
declined slightly. Catastrophe losses from continuing operations were $9.0
million after-tax in the third quarter of 2009, compared to $54.0 million
after-tax in the third quarter of 2008 which included the impact of three major
hurricanes. Comprehensive investment gains, which include the unrealized
increases in the value of investments, were $226.0 million before tax for the
third quarter of 2009, compared to comprehensive investment losses of $301.5
million before tax for the third quarter of 2008. Our plan to exit the
automobile finance business and recover the capital that we have invested in
Fireside Bank is going extremely well. We believe that Unitrin Direct is now
running at approximately a break-even level, but we will not begin to grow that
business again until we are confident that Unitrin Direct`s book of business is
adequately priced. Our Life and Health Insurance, Kemper and Unitrin Specialty
segments all continue to report strong operating results."

Shareholders` Equity

Shareholders` equity was $1,893.2 million at September 30, 2009, an increase of
$199.6 million, or 11.8% during the third quarter of 2009. Total comprehensive
income, which includes the unrealized gains in the value of investments, was
$213.2 million for the three months ended September 30, 2009. Dividends paid
during the third quarter were $12.5 million.

Total Revenues

Total revenues were $750.6 million for the third quarter of 2009, compared to
$679.9 million for the third quarter of 2008. Total revenues increased due
primarily to lower net impairment losses recognized in earnings, higher net
investment income and higher earned premiums, partially offset by lower
automobile finance revenues and lower net realized gains on sales of
investments.

Earned premiums were $616.2 million and $599.5 million for the third quarters of
2009 and 2008, respectively, an increase of $16.7 million. Earned premiums
increased significantly in the Unitrin Direct segment, with the Unitrin
Specialty segment posting a modest increase, the Life and Health Insurance
segment posting a modest decrease and the Kemper segment posting a slight
decrease. Automobile finance revenues decreased by $18.0 million for the third
quarter of 2009, compared to the same period in 2008, as Fireside Bank continued
to execute its plan to exit the automobile finance business.

Net investment income increased by $29.6 million for the three months ended
September 30, 2009, compared to the same period in 2008, due primarily to higher
investment income from investments in limited liability investment companies and
limited partnerships, partially offset by lower dividend income from investments
in equity securities and lower investment income from short-term investments.
Net investment income from limited liability investment companies and limited
partnerships increased due primarily to higher investment returns. Dividend
income from investments in equity securities decreased due primarily to sales of
the vast majority of the Company`s investments in Northrop Grumman common stock
and other publicly-traded common stocks during 2008. Net investment income from
short-term investments decreased due primarily to substantially lower yields
and, to a lesser extent, a lower level of short-term investments.

Net realized gains on sales of investments were $12.4 million for the third
quarter of 2009, compared to $27.5 million for the same period in 2008. Net
realized gains on sales of investments for the third quarter of 2009 included
gains of $3.8 million from the sales of a portion of the Company`s investment in
Northrop common stock, compared to $35.4 million for the same period in 2008.
(See "Net Realized Gains on Sales of Investments" chart below for additional
information.) The Company cannot anticipate when or if similar net realized
gains or losses on sales of investments may occur in the future.

Net impairment losses recognized in earnings were $14.5 million for the third
quarter of 2009, compared to $72.1 million for the same period in 2008. Net
impairment losses recognized in earnings for the third quarter of 2008 included
losses of $42.1 million to write down the Company`s investments in preferred and
common stocks of financial institutions (See "Net Impairment Losses Recognized
in Earnings" chart below for additional information.) The Company cannot
anticipate when or if similar net impairment losses may occur in the future.

Quarterly Segment Results

Unitrin is engaged, through its subsidiaries, in the property and casualty
insurance, life and health insurance and automobile finance businesses. The
Company conducts its continuing operations through five operating segments:
Kemper, Unitrin Specialty, Unitrin Direct, Life and Health Insurance and
Fireside Bank.

NOTE: The Company uses the registered trademark, "Kemper," under license, for
personal lines insurance only, from Lumbermens Mutual Casualty Company
("Lumbermens"), which is not affiliated with the Company. Lumbermens continues
to use the name, "Kemper Insurance Companies," in connection with its
operations, which are distinct from, and not to be confused with, Unitrin`s
Kemper business segment.

Kemper

Earned premiums in the Kemper segment decreased by $0.5 million for the third
quarter of 2009, compared to the same period in 2008, due primarily to an
increase in the cost of reinsurance. The Kemper segment reported an operating
profit of $26.4 million for the third quarter of 2009, compared to an operating
loss of $23.6 million for the same period in 2008. Operating results for the
Kemper segment improved by $50.0 million for the third quarter of 2009, compared
to the same period in 2008, due primarily to lower incurred losses and loss
adjustment expenses ("LAE") and, to a lesser extent, higher net investment
income and lower insurance expenses. Incurred losses and LAE decreased by $36.6
million for the third quarter of 2009, compared to the same period in 2008, due
primarily to lower catastrophe losses and LAE, partially offset by higher
frequency of losses on automobile insurance.

Unitrin Specialty

Earned premiums in the Unitrin Specialty segment increased by $6.0 million for
the third quarter of 2009, compared to the same period in 2008, due primarily to
higher volume of personal automobile insurance, partially offset by lower volume
of commercial automobile insurance. Operating profit in the Unitrin Specialty
segment increased by $6.2 million for the third quarter of 2009, compared to the
same period in 2008, due primarily to lower losses and LAE as a percentage of
earned premiums and higher net investment income. Losses and LAE as a percentage
of earned premiums decreased due primarily to favorable loss and LAE reserve
development of $2.2 million in the third quarter of 2009, compared to adverse
development of $0.1 million in the same period in 2008.

Unitrin Direct

Earned premiums in the Unitrin Direct segment increased by $14.4 million for the
third quarter of 2009, compared to the same period in 2008, due primarily to the
impact of the Direct Response acquisition, partially offset by lower volume of
insurance. The Unitrin Direct segment reported an operating profit of $0.6
million for the third quarter of 2009, compared to an operating loss of $13.9
million for the same period of 2008. Operating results for the Unitrin Direct
segment improved by $14.5 million due primarily to lower incurred losses and LAE
as a percentage of earned premiums, lower marketing expenses, higher net
investment income, and an operating profit of $0.7 million related to the Direct
Response acquisition. Operating Profit for the Unitrin Direct segment included
restructuring costs of $1.2 million before tax for the third quarter of 2009.

Life and Health Insurance

Earned premiums in the Life and Health Insurance segment decreased by $3.2
million for the third quarter of 2009, compared to the same period in 2008, due
primarily to lower volume, partially offset by higher average premium rates and
lower cost of catastrophe reinsurance coverage.

Operating profit in the Life and Health Insurance segment increased by $49.5
million for the third quarter of 2009, compared to the same period in 2008, due
primarily to lower catastrophe losses and LAE, net of reinsurance, on property
insurance sold by the Life and Health Insurance segment`s career agents, higher
net investment income, and lower policyholders` benefits as a percentage of
earned premiums on life insurance.

Fireside Bank

As previously announced, on March 24, 2009, Fireside Bank suspended all new
lending activity and ceased opening new certificate of deposit accounts as part
of a plan to exit the automobile finance business. The exit plan envisions an
orderly wind-down of Fireside Bank`s operations over the next several years.
Fireside Bank continues to collect outstanding loan balances and make interest
payments and redemptions on outstanding certificates of deposits in the ordinary
course of business.

While in its early stages, the exit plan thus far has exceeded the Company`s
expectations. Net automobile loan receivables outstanding has declined steadily
to $867.2 million at September 30, 2009 from $1,125.2 million at March 31, 2009,
while certificates of deposits declined to $758.6 million at September 30, 2009
from $1,054.4 million at March 31, 2009. Fireside Bank`s cash and investments
totaled $177.4 million, or 23.4% of certificates of deposits, at September 30,
2009, compared to $204.7 million, or 19.4% of certificates of deposits, at March
31, 2009. The Company expects that the Fireside Bank segment will record
approximately break-even results for the fourth quarter of 2009. Fireside Bank`s
ratio of Tier 1 capital to total average assets increased from 15.6% at March
31, 2009 to 19.3% at September 30, 2009. The Company expects that Fireside
Bank`s ratio of Tier 1 capital to total average assets will continue to increase
in the fourth quarter of 2009.

Automobile finance revenues decreased by $18.0 million for the third quarter of
2009, compared to the same period in 2008, due to the lower levels of loans
outstanding as a result of the exit plan. Fireside Bank reported operating
profit of $3.4 million for the third quarter of 2009, compared to an operating
loss of $1.3 million for the same period in 2008.

Consolidated results for the three and nine months ended September 30, 2009 and
2008 are as follows:

Three Months Ended Nine Months Ended
(Dollars and Shares in Millions, Sept. 30, Sept. 30, Sept. 30, Sept. 30,
Except Per Share Amounts) 2009 2008 2009 2008
Revenues:
Earned Premiums $ 616.2 $ 599.5 $ 1,855.0 $ 1,771.7
Automobile Finance Revenues 42.1 60.1 142.4 185.6
Net Investment Income 93.3 63.7 234.7 191.0
Other Income 1.1 1.2 2.0 2.6
Net Realized Gains on Sales of Investments 12.4 27.5 17.6 65.5
Other-than-temporary Impairment Losses:
Total Other-than-temporary Impairment Losses (14.6 ) (72.1 ) (49.9 ) (98.9 )
Portion of Losses Recognized in Other Comprehensive Income 0.1 - 0.7 -
Net Impairment Losses Recognized in Earnings (14.5 ) (72.1 ) (49.2 ) (98.9 )

Total Revenues 750.6 679.9 2,202.5 2,117.5
Expenses:
Policyholders` Benefits and Incurred
Losses and Loss Adjustment Expenses 435.1 494.3 1,328.3 1,353.2
Insurance Expenses 177.0 190.8 543.7 545.9
Automobile Finance Expenses 29.2 47.8 111.6 171.3
Interest Expense on Certificates of Deposits 10.1 14.2 34.6 44.9
Goodwill - - 1.5 -
Interest and Other Expenses 15.5 14.6 47.5 46.3
Total Expenses 666.9 761.7 2,067.2 2,161.6
Income (Loss) from Continuing Operations before
Income Taxes and Equity in Net Income (Loss) of Investee 83.7 (81.8 ) 135.3 (44.1 )
Income Tax Benefit (Expense) (21.7 ) 31.2 (38.1 ) 27.9
Income (Loss) from Continuing Operations before
Equity in Net Income (Loss) of Investee 62.0 (50.6 ) 97.2 (16.2 )
Equity in Net Income (Loss) of Investee (1.0 ) 1.0 (1.1 ) 4.3
Income (Loss) from Continuing Operations 61.0 (49.6 ) 96.1 (11.9 )
Discontinued Operations:
Income (Loss) from Discontinued
Operations before Income Taxes 1.6 6.7 3.7 (5.1 )
Income Tax Expense (0.5 ) (2.3 ) (1.4 ) (2.0 )
Income (Loss) from Discontinued Operations 1.1 4.4 2.3 (7.1 )

Net Income (Loss) $ 62.1 $ (45.2 ) $ 98.4 $ (19.0 )
Basic Income (Loss) Per Share from Continuing Operations:
Restricted Common Stock $ 0.43 $ (1.09 ) $ 1.10 $ (0.41 )
Unrestricted Common Stock $ 0.98 $ (0.79 ) $ 1.54 $ (0.19 )

Basic Net Income (Loss) Per Share:
Restricted Common Stock $ 0.45 $ (1.02 ) $ 1.14 $ (0.52 )
Unrestricted Common Stock $ 1.00 $ (0.72 ) $ 1.58 $ (0.30 )

Diluted Income (Loss) Per Share from Continuing Operations:
Restricted Common Stock $ 0.43 $ (1.09 ) $ 1.10 $ (0.41 )
Unrestricted Common Stock $ 0.98 $ (0.79 ) $ 1.54 $ (0.19 )

Diluted Net Income (Loss) Per Share:
Restricted Common Stock $ 0.45 $ (1.02 ) $ 1.14 $ (0.52 )
Unrestricted Common Stock $ 1.00 $ (0.72 ) $ 1.58 $ (0.30 )

Dividends Paid Per Share $ 0.20 $ 0.47 $ 0.87 $ 1.41

Business segment revenues for the three and nine months ended September 30, 2009
and 2008 are as follows:

Three Months Ended Nine Months Ended
Sept. 30, Sept. 30, Sept. 30, Sept. 30,
(Dollars in Millions) 2009 2008 2009 2008
Revenues:
Segment Revenues:
Kemper:
Earned Premiums $ 234.7 $ 235.2 $ 700.9 $ 694.2
Net Investment Income 13.9 6.7 28.7 22.4
Other Income 0.1 0.2 0.3 0.4
Total Kemper 248.7 242.1 729.9 717.0
Unitrin Specialty:
Earned Premiums 131.6 125.6 398.9 362.8
Net Investment Income 6.8 3.1 14.2 10.1
Other Income 0.1 - 0.2 0.1
Total Unitrin Specialty 138.5 128.7 413.3 373.0
Unitrin Direct:
Earned Premiums 88.1 73.7 264.7 219.6
Net Investment Income 6.2 1.7 12.6 5.4
Other Income 0.6 0.1 0.7 0.3
Total Unitrin Direct 94.9 75.5 278.0 225.3
Life and Health Insurance:
Earned Premiums 161.8 165.0 490.5 495.1
Net Investment Income 60.9 45.1 167.4 135.1
Other Income 0.2 0.2 0.7 0.9
Total Life and Health Insurance 222.9 210.3 658.6 631.1

Fireside Bank:
Interest, Loan Fees and Earned Discounts 41.2 59.0 139.4 181.7
Other Automobile Finance Revenues 0.9 1.1 3.0 3.9
Automobile Finance Revenues 42.1 60.1 142.4 185.6
Net Investment Income 0.6 0.7 2.3 3.5
Total Fireside Bank 42.7 60.8 144.7 189.1

Total Segment Revenues 747.7 717.4 2,224.5 2,135.5
Unallocated Dividend Income 0.4 3.3 1.1 10.1
Net Realized Gains on Sales of Investments 12.4 27.5 17.6 65.5
Net Impairment Losses Recognized in Earnings (14.5 ) (72.1 ) (49.2 ) (98.9 )
Other 4.6 3.8 8.5 5.3
Total Revenues $ 750.6 $ 679.9 $ 2,202.5 $ 2,117.5

Business segment operating profit (loss) for the three and nine months ended
September 30, 2009 and 2008 is as follows:

Three Months Ended Nine Months Ended
Sept. 30, Sept. 30, Sept. 30, Sept. 30,
(Dollars in Millions) 2009 2008 2009 2008
Segment Operating Profit (Loss):
Kemper $ 26.4 $ (23.6 ) $ 61.1 $ (12.6 )
Unitrin Specialty 10.5 4.3 21.3 14.5
Unitrin Direct 0.6 (13.9 ) (18.4 ) (36.6 )
Life and Health Insurance 47.8 (1.7 ) 118.9 60.0
Fireside Bank 3.4 (1.3 ) (1.5 ) (27.2 )
Total Segment Operating Profit (Loss) 88.7 (36.2 ) 181.4 (1.9 )
Unallocated Dividend Income 0.4 3.3 1.1 10.1
Net Realized Gains on Sales of Investments 12.4 27.5 17.6 65.5
Net Impairment Losses Recognized in Earnings (14.5 ) (72.1 ) (49.2 ) (98.9 )
Other Expense, Net (3.3 ) (4.3 ) (15.6 ) (18.9 )
Income (Loss) from Continuing Operations before Income
Taxes and Equity in Net Income (Loss) of Investee $ 83.7 $ (81.8 ) $ 135.3 $ (44.1 )

Business segment net income (loss) for the three and nine months ended September
30, 2009 and 2008 is as follows:

Three Months Ended Nine Months Ended
Sept. 30, Sept. 30, Sept. 30, Sept. 30,
(Dollars in Millions) 2009 2008 2009 2008
Segment Net Income (Loss):
Kemper $ 19.2 $ (13.3 ) $ 45.7 $ (1.8 )
Unitrin Specialty 7.8 3.7 16.8 12.3
Unitrin Direct 1.3 (8.5 ) (9.7 ) (22.2 )
Life and Health Insurance 31.7 (1.1 ) 77.7 38.1
Fireside Bank 2.4 (5.3 ) (7.3 ) (20.5 )
Total Segment Net Income (Loss) 62.4 (24.5 ) 123.2 5.9
Net Income (Loss) From:
Unallocated Dividend Income 0.4 2.9 1.0 8.8
Net Realized Gains on Sales of Investments 8.1 17.9 11.5 42.6
Net Impairment Losses Recognized in Earnings (9.4 ) (46.9 ) (32.0 ) (64.3 )
Other Expense, Net 0.5 - (6.5 ) (9.2 )
Income (Loss) from Continuing Operations Before
Equity in Net Income (Loss) of Investee 62.0 (50.6 ) 97.2 (16.2 )
Equity in Net Income (Loss) of Investee (1.0 ) 1.0 (1.1 ) 4.3
Income (Loss) from Continuing Operations $ 61.0 $ (49.6 ) $ 96.1 $ (11.9 )

The components of Net Realized Gains on Sales of Investments for the three and
nine months ended September 30, 2009 and 2008 are as follows:

Three Months Ended Nine Months Ended
Sept. 30, Sept. 30, Sept. 30, Sept. 30,
(Dollars in Millions) 2009 2008 2009 2008
Fixed Maturities:
Gains on Dispositions $ 3.9 $ 0.1 $ 7.3 $ 4.6
Losses on Dispositions (0.2 ) (4.0 ) (0.3 ) (5.2 )
Equity Securities:
Gains on Dispositions 8.3 36.9 9.8 76.3
Losses on Dispositions - (4.8 ) - (10.4 )
Real Estate
Gains on Dispositions - - - 1.5
Other Investments:
Losses on Dispositions (0.1 ) - (0.1 ) (0.1 )
Trading Securities Net Gains (Losses) 0.5 (0.7 ) 0.9 (1.2 )
Net Realized Gains on Sales of Investments $ 12.4 $ 27.5 $ 17.6 $ 65.5

The components of Net Impairment Losses Recognized in Earnings for the three and
nine months ended September 30, 2009 and 2008 were:

Three Months Ended Nine Months Ended
Sept. 30, Sept. 30, Sept. 30, Sept. 30,
(Dollars in Millions) 2009 2008 2009 2008
Fixed Maturities $ (14.5 ) $ (21.5 ) $ (41.2 ) $ (23.2 )
Equity Securities - (50.6 ) (8.0 ) (75.7 )
Net Impairment Losses Recognized in Earnings $ (14.5 ) $ (72.1 ) $ (49.2 ) $ (98.9 )

Unitrin, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(Dollars in millions, except per share amounts)

Sept. 30, Dec. 31,
2009 2008
(Unaudited)
Assets:
Investments:
Fixed Maturities at Fair Value (Amortized
Cost: 2009 - $4,324.0; 2008 - $4,174.4) $ 4,552.0 $ 4,135.9
Equity Securities at Fair Value
(Cost: 2009 - $187.9; 2008 - $255.4) 196.7 221.8
Investee (Intermec) at Cost Plus Cumulative Undistributed Earnings
(Fair Value: 2009 - $178.5; 2008 - $168.1) 97.4 102.2
Short-term Investments at Cost which Approximates Fair Value 496.2 548.6
Other 755.9 714.9
Total Investments 6,098.2 5,723.4

Cash 101.9 184.2
Automobile Loan Receivables (Fair
Value: 2009 - $773.3; 2008 - $1,099.6) 768.7 1,078.6
Other Receivables 676.7 686.5
Deferred Policy Acquisition Costs 528.1 489.2
Goodwill 331.8 334.6
Current and Deferred Income Taxes 121.2 201.4
Other Assets 131.2 120.9
Total Assets $ 8,757.8 $ 8,818.8

Liabilities and Shareholders` Equity:
Insurance Reserves:
Life and Health $ 3,014.4 $ 2,972.6
Property and Casualty 1,269.9 1,268.7
Total Insurance Reserves 4,284.3 4,241.3

Certificates of Deposits at Cost
(Fair Value: 2009 - $796.5; 2008 - $1,148.7) 758.6 1,110.8
Unearned Premiums 761.8 733.5
Liabilities for Income Taxes 16.5 68.2
Notes Payable at Amortized Cost (Fair Value: 2009 - $495.9; 2008 - $433.9) 561.2 560.8
Accrued Expenses and Other Liabilities 482.2 455.6
Total Liabilities 6,864.6 7,170.2

Shareholders` Equity:
Common Stock, $0.10 par value, 100 Million Shares Authorized;
62,356,966 Shares Issued and Outstanding at September 30, 2009 and
62,314,503 Shares Issued and Outstanding at December 31, 2008 6.2 6.2
Paid-in Capital 765.3 764.7
Retained Earnings 1,033.0 985.8
Accumulated Other Comprehensive Income (Loss) 88.7 (108.1 )
Total Shareholders` Equity 1,893.2 1,648.6
Total Liabilities and Shareholders` Equity $ 8,757.8 $ 8,818.8

This press release may contain or incorporate by reference information that
includes or is based on forward-looking statements within the meaning of Section
27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act
of 1934. Forward-looking statements give expectations or forecasts of future
events. The reader can identify these statements by the fact that they do not
relate strictly to historical or current facts. They use words such as
"believe(s)," "goal(s)," "target(s)," "estimate(s)," "anticipate(s),"
"forecast(s)," "project(s)," "plan(s)," "intend(s)," "expect(s)," "might," "may"
and other words and terms of similar meaning in connection with a discussion of
future operating or financial performance. Forward-looking statements, in
particular, include statements relating to future actions, prospective services
or products, future performance or results of current and anticipated services
or products, sales efforts, expenses, the outcome of contingencies such as legal
proceedings, trends in operations and financial results.

Any or all forward-looking statements may turn out to be wrong, and,
accordingly, readers are cautioned not to place undue reliance on such
statements, which speak only as of the date of this press release.
Forward-looking statements can be affected by inaccurate assumptions or by known
or unknown risks and uncertainties. Many such factors will be important in
determining the Company`s actual future results. These statements are based on
current expectations and the current economic environment. They involve a number
of risks and uncertainties that are difficult to predict. These statements are
not guarantees of future performance; actual results could differ materially
from those expressed or implied in the forward-looking statements.

Among the general factors that could cause actual results to differ materially
from estimated results are:

• Changes in general economic conditions, including performance of financial
markets, interest rates, unemployment rates and fluctuating values of particular
investments held by the Company;

• Heightened competition, including, with respect to pricing, entry of new
competitors and the development of new products by new and existing competitors;

• The number and severity of insurance claims (including those associated with
catastrophe losses) and their impact on the adequacy of loss reserves;

• The impact of inflation on insurance claims, including, but not limited to,
the effects attributed to scarcity of resources available to rebuild damaged
structures, including labor and materials and the amount of salvage value
recovered for damaged property;

• Orders, interpretations or other actions by regulators that impact the
reporting, adjustment and payment of claims;

• Changes in the pricing or availability of reinsurance;

• Changes in the financial condition of reinsurers and amounts recoverable
therefrom;

• Changes in industry trends and significant industry developments;

• Regulatory approval of insurance rates, policy forms, license applications and
similar matters;

• Developments related to insurance policy claims and coverage issues including,
but not limited to, interpretations or decisions by courts or regulators that
may govern or influence insurance policy coverage issues arising with respect to
losses incurred in connection with hurricanes and other catastrophes;

• Governmental actions, including, but not limited to, national health care
reform, new laws or regulations or court decisions interpreting existing laws
and regulations or policy provisions;

• Adverse outcomes in litigation or other legal or regulatory proceedings
involving Unitrin or its subsidiaries or affiliates;

• Regulatory, accounting or tax changes that may affect the cost of, or demand
for, the Company`s products or services;

• The impact of residual market assessments and assessments for insurance
industry insolvencies;

• Changes in distribution channels, methods or costs resulting from changes in
laws or regulations, lawsuits or market forces;

• Changes in ratings by credit rating agencies, including A.M. Best Co., Inc.;

• Changes in laws or regulations governing or affecting the regulatory status of
industrial banks, such as Fireside Bank, and their parent companies, including
minimum capital requirements and restrictions on the non-financial activities
and equity investments of companies that acquire control of industrial banks;

• Changes in the estimated rates of automobile loan receivables net charge-off
used to estimate Fireside Bank`s reserve for loan losses, including, but not
limited to, the impact of changes in the value of collateral held;

• The degree of success in effecting an orderly wind-down of the operations of
Fireside Bank and the recovery of Unitrin`s investment in Fireside Bank;

• The degree of success and costs expended in realizing economies of scale and
implementing significant business consolidations and technology initiatives;

• Increased costs and risks related to data security;

• Absolute and relative performance of the Company`s products or services; and

• Other risks and uncertainties described from time to time in the Company`s
filings with the Securities and Exchange Commission ("SEC").

No assurances can be given that the results contemplated in any forward-looking
statements will be achieved or will be achieved in any particular timetable. The
Company assumes no obligation to publicly correct or update any forward-looking
statements as a result of events or developments subsequent to the date of this
press release. The reader is advised, however, to consult any further
disclosures the Company makes on related subjects in filings made with the SEC.

Unitrin is a financial services company focused on creating shareholder value by
providing through its subsidiaries a diverse array of insurance products and
services for individuals, families and small businesses.

Among the brands in Unitrin`s Property and Casualty Insurance businesses are
Kemper and Unitrin Specialty, which sell personal and commercial insurance
through networks of independent agents, and Unitrin Direct, which sells
automobile and homeowners insurance directly to consumers or through
employer-sponsored voluntary benefit programs. Unitrin`s Life and Health
Insurance businesses bring a high-level of personalized service to their
customers.

Additional information about Unitrin, including a copy of its Quarterly Report
on Form 10-Q for the quarter ended September 30, 2009, is available by visiting
its website (www.unitrin.com).

Unitrin plans to issue its next earnings news release discussing its full year
and fourth quarter results and file its annual report on Form 10-K after the
market closes on or about Monday, February 1, 2010.

Unitrin, Inc.
Frank J. Sodaro at (312) 661-4930
or via e-mail at investor.relations@unitrin.com

Copyright Business Wire 2009