Kemper (KMPR) 8-K Unitrin, Inc. Reports First Quarter Earnings of $54.1 million

Exhibit 99.2

Investor Supplement

First Quarter 2011

The financial statements and financial exhibits included herein are unaudited. These financial statements and exhibits should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q filed subsequent to such Form 10-K. The results of operations for interim periods should not be considered indicative of results to be expected for the full year.

Non-GAAP Financial Measures

This document contains non-GAAP financial measures to analyze the Company’s operating performance for the periods presented. Because the Company’s calculation of these measures may differ from similar measures used by other companies, investors should be careful when comparing the Company’s non-GAAP financial measures to those of other companies. For detailed disclosures on non-GAAP financial measures please refer to the “Definitions of Non-GAAP Financial Measures” on Page 19.

Unitrin, Inc.

Investor Supplement

First Quarter 2011

Table of Contents

	Page
GAAP Highlights		3
Segment Revenues		4
Segment Operating Results		5
Combined Property and Casualty Operations		6
Kemper Segment		7
Unitrin Specialty Segment		8
Unitrin Direct Segment		9
Life and Health Insurance Segment		10
Consolidated Balance Sheets		11
Consolidated Statements Of Operations		12
Capital Metrics		13
Investment Performance		14
Invested Assets		15
Investment Concentration		16
Municipal Bond Securities		17
Investments in Limited Liability Investment Companies and Limited Partnerships		18
Definitions of Non-GAAP Financial Measures		19

2 of 19

Unitrin, Inc.

Consolidated Financial Highlights

(Dollars in Millions, Except Per Share Amounts)

(Unaudited)

	Three Months Ended
	March 31,			Dec. 31,			Sept. 30,			June 30,			March 31,
	2011			2010			2010			2010			2010
For Period Ended
Earned Premiums	$	546.0		$	561.6		$	568.2		$	578.1		$	581.5
Automobile Finance Revenues		15.5			19.1			22.6			26.7			30.6
Net Investment Income		81.6			85.1			79.9			81.8			80.8
Net Investment Gains and Other Income		14.3			24.5			3.0			(1.7	)		1.6
Total Revenues	$	657.4		$	690.3		$	673.7		$	684.9		$	694.5
Income (Loss) from Continuing Operations	$	55.8		$	61.5		$	35.5		$	39.1		$	47.7
Net Income (Loss)	$	54.1		$	62.9		$	35.7		$	37.8		$	48.2
Income (Loss) from Continuing Operations
Per Unrestricted Share:
Basic	$	0.92		$	1.00		$	0.57		$	0.63		$	0.76
Diluted	$	0.92		$	1.00		$	0.57		$	0.63		$	0.76
Net Income (Loss) Per Unrestricted Share:
Basic	$	0.89		$	1.03		$	0.58		$	0.61		$	0.77
Diluted	$	0.89		$	1.03		$	0.58		$	0.61		$	0.77
Dividends Paid to Shareholders Per Share	$	0.24		$	0.22		$	0.22		$	0.22		$	0.22
At Period End
Total Assets	$	8,230.0		$	8,358.5		$	8,540.9		$	8,507.9		$	8,512.0
Insurance Reserves	$	4,169.4		$	4,182.4		$	4,185.4		$	4,198.3		$	4,217.2
Notes Payable	$	610.0		$	609.8		$	561.9		$	561.8		$	561.6
Shareholders’ Equity	$	2,116.5		$	2,113.4		$	2,200.3		$	2,068.2		$	1,977.6
Shareholders’ Equity Excluding Goodwill	$	1,804.7		$	1,801.6		$	1,888.5		$	1,741.6		$	1,645.8
Common Shares Issued and Outstanding (In Millions)		60.453			61.067			61.450			61.925			62.464
Book Value Per Share1	$	35.01		$	34.61		$	35.81		$	33.40		$	31.66
Book Value Per Share Excluding Goodwill1	$	29.85		$	29.50		$	30.73		$	28.12		$	26.35
Book Value Per Share Excluding Unrealized on Fixed Maturities1	$	32.55		$	32.11		$	31.36		$	30.14		$	29.79
Debt to Total Capitalization1		22.4	%		22.4	%		20.3	%		21.4	%		22.1	%
Rolling 12 Months Return on Simple Average Shareholders Equity2		9.3	%		9.2	%		9.2	%		11.4	%		12.3	%
Rolling 12 Months Return on 5-point Average Shareholders Equity2		9.1	%		9.0	%		9.3	%		11.2	%		12.1	%
	A.M. Best			Moody’s			S&P			Fitch
As of Date of Financial Supplement
Unitrin Debt Ratings:
Senior Notes Payable		bbb-			Baa3			BBB-			BBB-
Insurance Company Financial Strength Ratings:
Trinity Universal Insurance Company		A-			A3			A-			A-
United Insurance Company of America		A-			A3			A			A-
Reserve National Insurance Company		A-

¹  See Capital Metrics for detail calculations.

²  Rolling 12 Months Return on Average Shareholders Equity is calculated by taking the last 12 months of Net Income (Loss) divided by the average Shareholders’ Equity. Simple Average Shareholders’ Equity is calculated by using average of Beginning and Ending Shareholders’ Equity for the 12 month period. 5-point Average Shareholders’ Equity is calculated by using a 5-point quarter average of Shareholders’ Equity for the 12 month period.

3 of 19

Unitrin, Inc.

Segment Revenues

(Dollars In Millions) (Unaudited)

	Three Months Ended
	March 31, 2011			Dec. 31, 2010			Sept. 30, 2010			June 30, 2010			March 31, 2010
Revenues:
Kemper:
Earned Premiums	$	211.9		$	220.9		$	221.8		$	222.9		$	222.4
Net Investment Income		14.1			14.2			12.3			13.9			12.4
Other Income		0.1			0.1			0.1			0.1			0.1
Total Kemper		226.1			235.2			234.2			236.9			234.9
Unitrin Specialty:
Earned Premiums		112.4			115.0			117.0			120.5			122.4
Net Investment Income		6.3			6.3			5.7			6.7			6.1
Other Income		0.1			0.1			0.2			0.1			0.2
Total Unitrin Specialty		118.8			121.4			122.9			127.3			128.7
Unitrin Direct:
Earned Premiums		59.9			64.8			68.6			73.0			76.0
Net Investment Income		5.4			5.4			4.8			5.9			5.3
Other Income		—			—			—			0.1			—
Total Unitrin Direct		65.3			70.2			73.4			79.0			81.3
Life and Health Insurance:
Earned Premiums		161.8			160.9			160.8			161.7			160.7
Net Investment Income		53.0			55.9			53.8			51.3			53.3
Other Income		—			0.1			0.1			—			—
Total Life and Health Insurance		214.8			216.9			214.7			213.0			214.0
Fireside Bank:
Interest, Loan Fees and Earned Discounts		15.4			18.7			22.4			26.3			30.2
Other Automobile Finance Revenues		0.1			0.4			0.2			0.4			0.4
Automobile Finance Revenues		15.5			19.1			22.6			26.7			30.6
Net Investment Income		0.4			0.4			0.5			0.5			0.5
Total Fireside Bank		15.9			19.5			23.1			27.2			31.1
Total Segment Revenues		640.9			663.2			668.3			683.4			690.0
Net Realized Gains on Sales of Investments		14.5			28.0			7.2			2.9			4.5
Net Impairment Losses Recognized in Earnings		(0.4	)		(3.8	)		(4.6	)		(4.9	)		(3.2	)
Other		2.4			2.9			2.8			3.5			3.2
Total Revenues	$	657.4		$	690.3		$	673.7		$	684.9		$	694.5

4 of 19

Unitrin, Inc.

Segment Operating Results

(Dollars in Millions) (Unaudited)

	Three Months Ended
	March 31, 2011			Dec. 31, 2010			Sept. 30, 2010			June 30, 2010			March 31, 2010
Segment Operating Profit (Loss):
Kemper	$	14.2		$	9.9		$	17.1		$	17.6		$	19.3
Unitrin Specialty		5.1			1.6			8.0			7.5			7.5
Unitrin Direct		(7.4	)		(5.4	)		(1.5	)		0.9			(1.1	)
Life and Health		50.8			53.1			26.9			33.5			40.5
Fireside Bank		11.7			9.9			5.3			4.6			4.8
Total Segment Operating Profit		74.4			69.1			55.8			64.1			71.0
Net Realized Gains on Sales of Investments		14.5			28.0			7.2			2.9			4.5
Net Impairment Losses Recognized in Earnings		(0.4	)		(3.8	)		(4.6	)		(4.9	)		(3.2	)
Other Expense, Net		(9.2	)		(6.8	)		(6.2	)		(5.7	)		(6.1	)
Income from Continuing Operations before Income Taxes and Equity in Net Income (Loss) of Investee	$	79.3		$	86.5		$	52.2		$	56.4		$	66.2
Segment Net Income (Loss):
Kemper	$	11.3		$	9.0		$	13.5		$	13.5		$	14.6
Unitrin Specialty		4.2			2.2			6.2			6.0			5.8
Unitrin Direct		(3.8	)		(1.9	)		0.3			0.4			0.1
Life and Health		32.7			34.6			12.4			21.5			26.4
Fireside Bank		8.0			5.8			3.2			2.7			3.0
Total Segment Net Income		52.4			49.7			35.6			44.1			49.9
Net Income (Loss) From:
Net Realized Gains on Sales of Investments		9.4			18.4			4.7			1.9			2.9
Net Impairment Losses Recognized in Earnings		(0.3	)		(2.4	)		(3.0	)		(3.2	)		(2.1	)
Other Expense, Net		(5.7	)		(4.2	)		(1.5	)		(3.2	)		(3.7	)
Income from Continuing Operations before Equity in Net Income (Loss) of Investee		55.8			61.5			35.8			39.6			47.0
Equity in Net Income (Loss) of Investee		—			—			(0.3	)		(0.5	)		0.7
Income from Continuing Operations	$	55.8		$	61.5		$	35.5		$	39.1		$	47.7
Earned Premiums by Product:
Life	$	99.4		$	98.4		$	98.8		$	100.0		$	99.5
Accident and Health		41.2			41.4			40.5			40.1			39.9
Property and Casualty:
Personal Lines:
Automobile		287.1			302.1			308.3			316.9			322.2
Homeowners		74.1			75.0			75.1			74.5			74.1
Other Personal		34.4			34.4			34.8			35.5			34.3
Total Personal Lines		395.6			411.5			418.2			426.9			430.6
Commercial Automobile		9.8			10.3			10.7			11.1			11.5
Total Earned Premiums	$	546.0		$	561.6		$	568.2		$	578.1		$	581.5

5 of 19

Unitrin, Inc.

Combined Property and Casualty Operations¹

(Dollars in Millions) (Unaudited)

	Three Months Ended
	March 31, 2011			Dec. 31, 2010			Sept. 30, 2010			June 30, 2010			March 31, 2010
Results of Operations
Net Premiums Written	$	383.6		$	375.9		$	411.4		$	402.7		$	408.7
Earned Premiums:
Personal:
Automobile	$	287.1		$	302.1		$	308.3		$	316.9		$	322.2
Homeowners		74.1			75.0			75.1			74.5			74.1
Other Personal		13.2			13.3			13.3			13.9			13.0
Total Personal		374.4			390.4			396.7			405.3			409.3
Commercial Automobile		9.8			10.3			10.7			11.1			11.5
Total Earned Premiums		384.2			400.7			407.4			416.4			420.8
Net Investment Income		25.8			25.9			22.8			26.5			23.8
Other Income		0.2			0.2			0.3			0.3			0.3
Total Revenues		410.2			426.8			430.5			443.2			444.9
Incurred Losses and LAE related to:
Current Year:
Non-catastrophe Losses and LAE		290.6			296.9			296.2			294.2			304.8
Catastrophe Losses and LAE		9.2			20.7			12.6			25.7			15.9
Prior Years:
Non-catastrophe Losses and LAE		(3.1	)		(0.7	)		(6.2	)		(5.9	)		(9.1	)
Catastrophe Losses and LAE		0.1			(0.6	)		(0.4	)		(2.3	)		(1.3	)
Total Incurred Losses and LAE		296.8			316.3			302.2			311.7			310.3
Insurance Expenses		101.5			104.4			104.7			105.5			108.9
Operating Profit		11.9			6.1			23.6			26.0			25.7
Income Tax Benefit (Expense)		(0.2	)		3.2			(3.6	)		(6.1	)		(5.2	)
Net Income	$	11.7		$	9.3		$	20.0		$	19.9		$	20.5
Ratios Based On Earned Premiums
Current Year Non-catastrophe Losses and LAE Ratio		75.7	%		74.0	%		72.7	%		70.7	%		72.4	%
Current Year Catastrophe Losses and LAE Ratio		2.4	%		5.2	%		3.1	%		6.2	%		3.8	%
Prior Years Non-catastrophe Losses and LAE Ratio		-0.8	%		-0.2	%		-1.5	%		-1.4	%		-2.2	%
Prior Years Catastrophe Losses and LAE Ratio		0.0	%		-0.1	%		-0.1	%		-0.6	%		-0.3	%
Total Incurred Loss and LAE Ratio		77.3	%		78.9	%		74.2	%		74.9	%		73.7	%
Incurred Expense Ratio		26.4	%		26.1	%		25.7	%		25.3	%		25.9	%
Combined Ratio		103.7	%		105.0	%		99.9	%		100.2	%		99.6	%
Underlying Combined Ratio2
Current Year Non-catastrophe Losses and LAE Ratio		75.7	%		74.0	%		72.7	%		70.7	%		72.4	%
Incurred Expense Ratio		26.4	%		26.1	%		25.7	%		25.3	%		25.9	%
Underlying Combined Ratio		102.1	%		100.1	%		98.4	%		96.0	%		98.3	%
Non-GAAP Measure Reconciliation
Underlying Combined Ratio		102.1	%		100.1	%		98.4	%		96.0	%		98.3	%
Current Year Catastrophe Losses and LAE Ratio		2.4	%		5.2	%		3.1	%		6.2	%		3.8	%
Prior Years Non-catastrophe Losses and LAE Ratio		-0.8	%		-0.2	%		-1.5	%		-1.4	%		-2.2	%
Prior Years Catastrophe Losses and LAE Ratio		0.0	%		-0.1	%		-0.1	%		-0.6	%		-0.3	%
Combined Ratio as Reported		103.7	%		105.0	%		99.9	%		100.2	%		99.6	%

¹  Includes the results of operations of the Kemper, Unitrin Specialty and Unitrin Direct segments.

²  Underlying Combined Ratio is a non-GAAP measure, which is computed as the difference between three operating ratios: the combined ratio, the effect of catastrophes (excluding development of prior year catastrophes) on the combined ratio and the effect of prior year reserve development at the reporting date (including development on prior year catastrophes) on the combined ratio.

6 of 19

Unitrin, Inc.

Kemper

(Dollars in Millions) (Unaudited)

	Three Months Ended
	March 31, 2011			Dec. 31, 2010			Sept. 30, 2010			June 30, 2010			March 31, 2010
Results of Operations
Net Premiums Written	$	199.6		$	208.4		$	230.1		$	226.4		$	207.3
Earned Premiums:
Automobile	$	126.9		$	134.8		$	135.6		$	136.9		$	137.4
Homeowners		71.9			72.8			72.9			72.2			72.1
Other Personal		13.1			13.3			13.3			13.8			12.9
Total Earned Premiums		211.9			220.9			221.8			222.9			222.4
Net Investment Income		14.1			14.2			12.3			13.9			12.4
Other Income		0.1			0.1			0.1			0.1			0.1
Total Revenues		226.1			235.2			234.2			236.9			234.9
Incurred Losses and LAE related to:
Current Year:
Non-catastrophe Losses and LAE		145.5			148.9			148.8			142.5			147.0
Catastrophe Losses and LAE		9.0			19.9			11.7			23.0			15.6
Prior Years:
Non-catastrophe Losses and LAE		(1.1	)		(4.0	)		(4.2	)		(4.1	)		(6.6	)
Catastrophe Losses and LAE		(0.3	)		(0.6	)		(0.4	)		(2.3	)		(1.6	)
Total Incurred Losses and LAE		153.1			164.2			155.9			159.1			154.4
Insurance Expenses		58.8			61.1			61.2			60.2			61.2
Operating Profit		14.2			9.9			17.1			17.6			19.3
Income Tax Expense		(2.9	)		(0.9	)		(3.6	)		(4.1	)		(4.7	)
Net Income	$	11.3		$	9.0		$	13.5		$	13.5		$	14.6
Ratios Based On Earned Premiums
Current Year Non-catastrophe Losses and LAE Ratio		68.7	%		67.4	%		67.1	%		63.9	%		66.1	%
Current Year Catastrophe Losses and LAE Ratio		4.2	%		9.0	%		5.3	%		10.3	%		7.0	%
Prior Years Non-catastrophe Losses and LAE Ratio		-0.5	%		-1.8	%		-1.9	%		-1.8	%		-3.0	%
Prior Years Catastrophe Losses and LAE Ratio		-0.1	%		-0.3	%		-0.2	%		-1.0	%		-0.7	%
Total Incurred Loss and LAE Ratio		72.3	%		74.3	%		70.3	%		71.4	%		69.4	%
Incurred Expense Ratio		27.7	%		27.7	%		27.6	%		27.0	%		27.5	%
Combined Ratio		100.0	%		102.0	%		97.9	%		98.4	%		96.9	%
Underlying Combined Ratio1
Current Year Non-catastrophe Losses and LAE Ratio		68.7	%		67.4	%		67.1	%		63.9	%		66.1	%
Incurred Expense Ratio		27.7	%		27.7	%		27.6	%		27.0	%		27.5	%
Underlying Combined Ratio		96.4	%		95.1	%		94.7	%		90.9	%		93.6	%
Non-GAAP Measure Reconciliation
Underlying Combined Ratio		96.4	%		95.1	%		94.7	%		90.9	%		93.6	%
Current Year Catastrophe Losses and LAE Ratio		4.2	%		9.0	%		5.3	%		10.3	%		7.0	%
Prior Years Non-catastrophe Losses and LAE Ratio		-0.5	%		-1.8	%		-1.9	%		-1.8	%		-3.0	%
Prior Years Catastrophe Losses and LAE Ratio		-0.1	%		-0.3	%		-0.2	%		-1.0	%		-0.7	%
Combined Ratio as Reported		100.0	%		102.0	%		97.9	%		98.4	%		96.9	%

¹  Underlying Combined Ratio is a non-GAAP measure, which is computed as the difference between three operating ratios: the combined ratio, the effect of catastrophes (excluding development of prior year catastrophes) on the combined ratio and the effect of prior year reserve development at the reporting date (including development on prior year catastrophes) on the combined ratio.

7 of 19

Unitrin, Inc.

Unitrin Specialty

(Dollars in Millions) (Unaudited)

	Three Months Ended
	March 31, 2011			Dec. 31, 2010			Sept. 30, 2010			June 30, 2010			March 31, 2010
Results of Operations
Net Premiums Written	$	123.1		$	106.1		$	114.0		$	110.5		$	126.6
Earned Premiums:
Personal Automobile	$	102.6		$	104.7		$	106.3		$	109.4		$	110.9
Commercial Automobile		9.8			10.3			10.7			11.1			11.5
Total Earned Premiums		112.4			115.0			117.0			120.5			122.4
Net Investment Income		6.3			6.3			5.7			6.7			6.1
Other Income		0.1			0.1			0.2			0.1			0.2
Total Revenues		118.8			121.4			122.9			127.3			128.7
Incurred Losses and LAE related to:
Current Year:
Non-catastrophe Losses and LAE		92.8			93.7			92.9			93.6			95.8
Catastrophe Losses and LAE		0.1			0.2			0.4			2.2			0.1
Prior Years:
Non-catastrophe Losses and LAE		(1.9	)		2.5			(1.5	)		1.7			1.3
Catastrophe Losses and LAE		0.1			—			—			—			0.1
Total Incurred Losses and LAE		91.1			96.4			91.8			97.5			97.3
Insurance Expenses		22.6			23.4			23.1			22.3			23.9
Operating Profit		5.1			1.6			8.0			7.5			7.5
Income Tax Benefit (Expense)		(0.9	)		0.6			(1.8	)		(1.5	)		(1.7	)
Net Income	$	4.2		$	2.2		$	6.2		$	6.0		$	5.8
Ratios Based On Earned Premiums
Current Year Non-catastrophe Losses and LAE Ratio		82.5	%		81.4	%		79.5	%		77.7	%		78.2	%
Current Year Catastrophe Losses and LAE Ratio		0.1	%		0.2	%		0.3	%		1.8	%		0.1	%
Prior Years Non-catastrophe Losses and LAE Ratio		-1.7	%		2.2	%		-1.3	%		1.4	%		1.1	%
Prior Years Catastrophe Losses and LAE Ratio		0.1	%		0.0	%		0.0	%		0.0	%		0.1	%
Total Incurred Loss and LAE Ratio		81.0	%		83.8	%		78.5	%		80.9	%		79.5	%
Incurred Expense Ratio		20.1	%		20.3	%		19.7	%		18.5	%		19.5	%
Combined Ratio		101.1	%		104.1	%		98.2	%		99.4	%		99.0	%
Underlying Combined Ratio1
Current Year Non-catastrophe Losses and LAE Ratio		82.5	%		81.4	%		79.5	%		77.7	%		78.2	%
Incurred Expense Ratio		20.1	%		20.3	%		19.7	%		18.5	%		19.5	%
Underlying Combined Ratio		102.6	%		101.7	%		99.2	%		96.2	%		97.7	%
Non-GAAP Measure Reconciliation
Underlying Combined Ratio		102.6	%		101.7	%		99.2	%		96.2	%		97.7	%
Current Year Catastrophe Losses and LAE Ratio		0.1	%		0.2	%		0.3	%		1.8	%		0.1	%
Prior Years Non-catastrophe Losses and LAE Ratio		-1.7	%		2.2	%		-1.3	%		1.4	%		1.1	%
Prior Years Catastrophe Losses and LAE Ratio		0.1	%		0.0	%		0.0	%		0.0	%		0.1	%
Combined Ratio as Reported		101.1	%		104.1	%		98.2	%		99.4	%		99.0	%

¹  Underlying Combined Ratio is a non-GAAP measure, which is computed as the difference between three operating ratios: the combined ratio, the effect of catastrophes (excluding development of prior year catastrophes) on the combined ratio and the effect of prior year reserve development at the reporting date (including development on prior year catastrophes) on the combined ratio.

8 of 19

Unitrin, Inc.

Unitrin Direct

(Dollars in Millions) (Unaudited)

	Three Months Ended
	March 31, 2011			Dec. 31, 2010			Sept. 30, 2010			June 30, 2010			March 31, 2010
Results of Operations
Net premiums written	$	60.9		$	61.4		$	67.3		$	65.8		$	74.8
Earned Premiums:
Automobile	$	57.6		$	62.6		$	66.4		$	70.6		$	73.9
Homeowners		2.2			2.2			2.2			2.3			2.0
Other Personal		0.1			—			—			0.1			0.1
Total Earned Premiums		59.9			64.8			68.6			73.0			76.0
Net Investment Income		5.4			5.4			4.8			5.9			5.3
Other Income		—			—			—			0.1			—
Total Revenues		65.3			70.2			73.4			79.0			81.3
Incurred Losses and LAE related to:
Current Year:
Non-catastrophe Losses and LAE		52.3			54.3			54.5			58.1			62.0
Catastrophe Losses and LAE		0.1			0.6			0.5			0.5			0.2
Prior Years:
Non-catastrophe Losses and LAE		(0.1	)		0.8			(0.5	)		(3.5	)		(3.8	)
Catastrophe Losses and LAE		0.3			—			—			—			0.2
Total Incurred Losses and LAE		52.6			55.7			54.5			55.1			58.6
Insurance Expenses		20.1			19.9			20.4			23.0			23.8
Operating Profit (Loss)		(7.4	)		(5.4	)		(1.5	)		0.9			(1.1	)
Income Tax Benefit (Expense)		3.6			3.5			1.8			(0.5	)		1.2
Net Income (Loss)	$	(3.8	)	$	(1.9	)	$	0.3		$	0.4		$	0.1
Ratios Based On Earned Premiums
Current Year Non-catastrophe Losses and LAE Ratio		87.3	%		83.9	%		79.4	%		79.6	%		81.5	%
Current Year Catastrophe Losses and LAE Ratio		0.2	%		0.9	%		0.7	%		0.7	%		0.3	%
Prior Years Non-catastrophe Losses and LAE Ratio		-0.2	%		1.2	%		-0.7	%		-4.8	%		-5.0	%
Prior Years Catastrophe Losses and LAE Ratio		0.5	%		0.0	%		0.0	%		0.0	%		0.3	%
Total Incurred Loss and LAE Ratio		87.8	%		86.0	%		79.4	%		75.5	%		77.1	%
Incurred Expense Ratio		33.6	%		30.7	%		29.7	%		31.5	%		31.3	%
Combined Ratio		121.4	%		116.7	%		109.1	%		107.0	%		108.4	%
Underlying Combined Ratio1
Current Year Non-catastrophe Losses and LAE Ratio		87.3	%		83.9	%		79.4	%		79.6	%		81.5	%
Incurred Expense Ratio		33.6	%		30.7	%		29.7	%		31.5	%		31.3	%
Underlying Combined Ratio		120.9	%		114.6	%		109.1	%		111.1	%		112.8	%
Non-GAAP Measure Reconciliation
Underlying Combined Ratio		120.9	%		114.6	%		109.1	%		111.1	%		112.8	%
Current Year Catastrophe Losses and LAE Ratio		0.2	%		0.9	%		0.7	%		0.7	%		0.3	%
Prior Years Non-catastrophe Losses and LAE Ratio		-0.2	%		1.2	%		-0.7	%		-4.8	%		-5.0	%
Prior Years Catastrophe Losses and LAE Ratio		0.5	%		0.0	%		0.0	%		0.0	%		0.3	%
Combined Ratio as Reported		121.4	%		116.7	%		109.1	%		107.0	%		108.4	%

¹  Underlying Combined Ratio is a non-GAAP measure, which is computed as the difference between three operating ratios: the combined ratio, the effect of catastrophes (excluding development of prior year catastrophes) on the combined ratio and the effect of prior year reserve development at the reporting date (including development on prior year catastrophes) on the combined ratio.

9 of 19

Unitrin, Inc.

Life and Health Insurance

(Dollars in Millions) (Unaudited)

	Three Months Ended
	March 31, 2011			Dec. 31, 2010			Sept. 30, 2010			June 30, 2010			March 31, 2010
Results of Operations
Earned Premiums:
Life	$	99.4		$	98.4		$	98.8		$	100.0		$	99.5
Accident and Health		41.2			41.4			40.5			40.1			39.9
Property		21.2			21.1			21.5			21.6			21.3
Total Earned Premiums		161.8			160.9			160.8			161.7			160.7
Net Investment Income		53.0			55.9			53.8			51.3			53.3
Other Income		—			0.1			0.1			—			—
Total Revenues		214.8			216.9			214.7			213.0			214.0
Policyholders’ Benefits and Incurred Losses and LAE		95.5			91.0			101.6			107.4			106.8
Insurance Expenses		68.5			72.8			71.4			72.1			66.7
Write-off of Goodwill		—			—			14.8			—			—
Operating Profit		50.8			53.1			26.9			33.5			40.5
Income Tax Expense		(18.1	)		(18.5	)		(14.5	)		(12.0	)		(14.1	)
Net Income	$	32.7		$	34.6		$	12.4		$	21.5		$	26.4

10 of 19

Unitrin, Inc.

Consolidated Balance Sheets

(Dollars in Millions) (Unaudited)

	March 31, 2011		December 31, 2010		Sept. 30, 2010		June 30, 2010		March 31, 2010
Assets:
Investments:
Fixed Maturities at Fair Value	$	4,491.9	$	4,475.3	$	4,711.4	$	4,741.5	$	4,617.1
Equity Securities at Fair Value		511.7		550.4		415.6		231.8		209.0
Equity Method Limited Liability Investments at Cost Plus Cumulative Undistributed Earnings		326.0		328.0		315.7		308.6		299.3
Investee (Intermec)		—		—		—		91.8		95.0
Short-term Investments at Cost		415.8		402.9		404.4		393.5		361.2
Other Investments		496.0		494.2		490.7		487.8		487.6
Total Investments		6,241.4		6,250.8		6,337.8		6,255.0		6,069.2
Cash		77.5		117.2		149.6		100.8		160.9
Automobile Loan Receivables at Cost and Net of Reserve for Loan Losses		278.1		337.6		397.4		470.9		556.1
Other Receivables		619.9		606.7		630.7		612.7		629.0
Deferred Policy Acquisition Costs		530.2		525.2		528.1		524.9		521.6
Goodwill		311.8		311.8		311.8		326.6		331.8
Current and Deferred Income Tax Assets		1.9		39.6		27.2		60.4		95.2
Other Assets		169.2		169.6		158.3		156.6		148.2
Total Assets	$	8,230.0	$	8,358.5	$	8,540.9	$	8,507.9	$	8,512.0
Liabilities and Shareholders’ Equity:
Insurance Reserves:
Life and Health	$	3,073.6	$	3,063.7	$	3,054.0	$	3,048.8	$	3,046.5
Property and Casualty		1,095.8		1,118.7		1,131.4		1,149.5		1,170.7
Total Insurance Reserves		4,169.4		4,182.4		4,185.4		4,198.3		4,217.2
Certificates of Deposits at Cost		172.7		321.4		409.2		512.7		596.1
Unearned Premiums		680.4		678.6		703.9		700.1		715.0
Liabilities for Income Taxes		8.6		15.1		60.3		10.8		11.1
Notes Payable at Amortized Cost		610.0		609.8		561.9		561.8		561.6
Accrued Expenses and Other Liabilities		472.4		437.8		419.9		456.0		433.4
Total Liabilities		6,113.5		6,245.1		6,340.6		6,439.7		6,534.4
Shareholders’ Equity:
Common Stock		6.0		6.1		6.1		6.2		6.3
Paid-in Capital		743.3		751.1		756.0		761.1		766.9
Retained Earnings		1,225.6		1,198.8		1,154.6		1,137.9		1,121.2
Accumulated Other Comprehensive Income		141.6		157.4		283.6		163.0		83.2
Total Shareholders’ Equity		2,116.5		2,113.4		2,200.3		2,068.2		1,977.6
Total Liabilities and Shareholders’ Equity	$	8,230.0	$	8,358.5	$	8,540.9	$	8,507.9	$	8,512.0

11 of 19

Unitrin, Inc.

Consolidated Statements of Income

(Dollars In Millions, Except Per Share Amounts) (Unaudited)

	Three Months Ended
	March 31, 2011			Dec. 31, 2010			Sept. 30, 2010			June 30, 2010			March 31, 2010
Revenues:
Earned Premiums	$	546.0		$	561.6		$	568.2		$	578.1		$	581.5
Automobile Finance Revenues		15.5			19.1			22.6			26.7			30.6
Net Investment Income		81.6			85.1			79.9			81.8			80.8
Other Income		0.2			0.3			0.4			0.3			0.3
Net Realized Gains on Sales of Investments		14.5			28.0			7.2			2.9			4.5
Other-than-temporary Impairment Losses:
Total Other-than-temporary Impairment Losses		(0.4	)		(3.8	)		(3.6	)		(4.1	)		(6.2	)
Portion of Losses Recognized in Other Comprehensive Income		—			—			(1.0	)		(0.8	)		3.0
Net Impairment Losses Recognized in Earnings		(0.4	)		(3.8	)		(4.6	)		(4.9	)		(3.2	)
Total Revenues		657.4			690.3			673.7			684.9			694.5
Expenses:
Policyholders’ Benefits and Incurred Losses and Loss Adjustment Expenses		392.3			407.1			403.9			419.1			417.1
Insurance Expenses		161.9			168.7			168.9			169.4			168.5
Automobile Finance Expenses		(2.9	)		3.2			11.3			15.2			18.4
Interest Expense on Certificates of Deposits		7.1			6.4			6.5			7.4			7.9
Write-off of Goodwill		—			—			14.8			—			—
Interest and Other Expenses		19.7			18.4			16.1			17.4			16.4
Total Expenses		578.1			603.8			621.5			628.5			628.3
Income from Continuing Operations before Income Taxes and Equity in Net Income (Loss) of Investee		79.3			86.5			52.2			56.4			66.2
Income Tax Expense		(23.5	)		(25.0	)		(16.4	)		(16.8	)		(19.2	)
Income from Continuing Operations before Equity in Net Income (Loss) of Investee		55.8			61.5			35.8			39.6			47.0
Equity in Net Income (Loss) of Investee		—			—			(0.3	)		(0.5	)		0.7
Income from Continuing Operations		55.8			61.5			35.5			39.1			47.7
Discontinued Operations:
Income (Loss) from Discontinued Operations before Income Taxes		(2.6	)		2.2			0.3			(2.1	)		0.8
Income Tax Benefit (Expense)		0.9			(0.8	)		(0.1	)		0.8			(0.3	)
Income (Loss) from Discontinued Operations		(1.7	)		1.4			0.2			(1.3	)		0.5
Net Income	$	54.1		$	62.9		$	35.7		$	37.8		$	48.2
Income from Continuing Operations Per Unrestricted Shares:
Basic	$	0.92		$	1.00		$	0.57		$	0.63		$	0.76
Diluted	$	0.92		$	1.00		$	0.57		$	0.63		$	0.76
Net Income Per Unrestricted Share:
Basic	$	0.89		$	1.03		$	0.58		$	0.61		$	0.77
Diluted	$	0.89		$	1.03		$	0.58		$	0.61		$	0.77
Dividends Paid to Shareholders Per Share	$	0.24		$	0.22		$	0.22		$	0.22		$	0.22
Weighted Average Unrestricted Common Shares Outstanding		60.678			61.127			61.458			61.985			62.155

12 of 19

Unitrin, Inc.

Capital Metrics

(Dollars and Shares in Millions, Except Per Share Amounts)

	Three Months Ended
	March 31, 2011			Dec. 31, 2010			Sept. 30, 2010			June 30, 2010			March 31, 2010
Book Value Per Share
Numerator
Shareholders’ Equity	$	2,116.5		$	2,113.4		$	2,200.3		$	2,068.2		$	1,977.6
Less: goodwill		(311.8	)		(311.8	)		(311.8	)		(326.6	)		(331.8	)
Shareholders’ Equity Excluding Goodwill		1,804.7			1,801.6			1,888.5			1,741.6			1,645.8
Shareholders’ Equity		2,116.5			2,113.4			2,200.3			2,068.2			1,977.6
Less: Unrealized Gains and Losses on Fixed Maturities		(149.0	)		(152.4	)		(273.5	)		(201.7	)		(117.1	)
Shareholders’ Equity Excluding Unrealized on Fixed Maturities		1,967.5			1,961.0			1,926.8			1,866.5			1,860.5
Denominator
Common Shares Issued and Outstanding		60.453			61.067			61.450			61.925			62.464
Book Value Per Share	$	35.01		$	34.61		$	35.81		$	33.40		$	31.66
Book Value Per Share Excluding Goodwill	$	29.85		$	29.50		$	30.73		$	28.12		$	26.35
Book Value Per Share Excluding Unrealized on Fixed Maturities	$	32.55		$	32.11		$	31.36		$	30.14		$	29.79
Return on Shareholders’ Equity
Numerator
Rolling 12 Months Net Income	$	190.5		$	184.6		$	188.0		$	214.4		$	218.5
Denominator (Simple Average)
Beginning Shareholders’ Equity	$	1,977.6		$	1,917.6		$	1,893.2		$	1,693.6		$	1,564.7
Ending Shareholders’ Equity		2,116.5			2,113.4			2,200.3			2,068.2			1,977.6
Simple Average Shareholders’ Equity		2,047.1			2,015.5			2,046.8			1,880.9			1,771.2
Rolling 12 Months Return on Average Shareholders Equity (Simple Average)		9.3	%		9.2	%		9.2	%		11.4	%		12.3	%
Denominator (5-point Average)
Ending Shareholders’ Equity Current Quarter	$	2,116.5		$	2,113.4		$	2,200.3		$	2,068.2		$	1,977.6
Ending Shareholders’ Equity 3 Months Ago		2,113.4			2,200.3			2,068.2			1,977.6			1,917.6
Ending Shareholders’ Equity 6 Months Ago		2,200.3			2,068.2			1,977.6			1,917.6			1,893.2
Ending Shareholders’ Equity 9 Months Ago		2,068.2			1,977.6			1,917.6			1,893.2			1,693.6
Ending Shareholders’ Equity 12 Months Ago		1,977.6			1,917.6			1,893.2			1,693.6			1,564.7
5-point Average Shareholders’ Equity		2,095.2			2,055.4			2,011.4			1,910.0			1,809.3
Rolling 12 Months Return on Average Shareholders Equity (5-point Average)		9.1	%		9.0	%		9.3	%		11.2	%		12.1	%
Debt and Total Capitalization
Long Term Debt	$	610.0		$	609.8		$	561.9		$	561.8		$	561.6
Shareholders’ Equity		2,116.5			2,113.4			2,200.3			2,068.2			1,977.6
Total Capitalization	$	2,726.5		$	2,723.2		$	2,762.2		$	2,630.0		$	2,539.2
Ratio of Debt to Shareholders’ Equity		28.8	%		28.9	%		25.5	%		27.2	%		28.4	%
Ratio of Debt to Total Capitalization		22.4	%		22.4	%		20.3	%		21.4	%		22.1	%
Parent Company Liquidity
Unitrin Holding Company Cash and Investments	$	84.2		$	60.5		$	67.5		$	135.7		$	141.8
Borrowings Available Under Credit Agreement		245.0			245.0			245.0			245.0			245.0
Parent Company Liquidity	$	329.2		$	305.5		$	312.5		$	380.7		$	386.8
Capital Returned to Shareholders
Common Stock Repurchased	$	21.7		$	9.9		$	10.5		$	14.0		$	—
Cash Dividends Paid		14.7			13.5			13.6			13.8			13.7
Total Capital Returned to Shareholders	$	36.4		$	23.4		$	24.1		$	27.8		$	13.7

13 of 19

Unitrin, Inc.

Details of Investment Performance

(Dollars in Millions) (Unaudited)

	Three Months Ended
	March 31, 2011			Dec. 31, 2010			Sept. 30, 2010			June 30, 2010			March 31, 2010
Investment Income:
Interest and Dividends on Fixed Maturities	$	60.4		$	60.3		$	61.0		$	61.3		$	63.0
Dividends on Equity Securities		7.1			4.8			4.0			2.9			4.3
Short-term Investments		0.1			0.1			0.1			0.1			0.1
Loans to Policyholders		4.4			4.2			4.2			4.0			4.1
Real Estate		6.4			6.9			6.7			6.9			6.6
Equity Method Limited Liability Investments		10.0			15.5			10.5			13.4			9.4
Total Investment Income		88.4			91.8			86.5			88.6			87.5
Investment Expenses:
Real Estate		6.4			6.3			6.4			6.5			6.5
Other Investment Expenses		0.4			0.4			0.2			0.3			0.2
Total Investment Expenses		6.8			6.7			6.6			6.8			6.7
Net Investment Income	$	81.6		$	85.1		$	79.9		$	81.8		$	80.8
								��
Net Realized Gains on Sales of Investments
Fixed Maturities:
Gains on Sales	$	3.1		$	15.8		$	0.9		$	2.3		$	2.5
Losses on Sales		—			(0.1	)		—			—			—
Equity Securities:
Gains on Sales		11.2			4.0			5.7			0.3			1.7
Investee - Intermec:
Gains on Sales		—			—			—			0.8			—
Real Estate:
Gains on Sales		0.1			8.2			—			—			—
Other Investments:
Gains on Sales		—			—			0.1			—			—
Losses on Sales		—			—			—			(0.1	)		—
Trading Securities Net Gains (Losses)		0.1			0.1			0.5			(0.4	)		0.3
Net Realized Gains on Sales of Investments	$	14.5		$	28.0		$	7.2		$	2.9		$	4.5
Net Impairment Losses Recognized in Earnings
Fixed Maturities	$	—		$	(2.0	)	$	(4.6	)	$	(4.6	)	$	(3.2	)
Equity Securities		(0.4	)		(1.8	)		—			(0.3	)		—
Net Impairment Losses Recognized in Earnings	$	(0.4	)	$	(3.8	)	$	(4.6	)	$	(4.9	)	$	(3.2	)

14 of 19

Unitrin, Inc.

Details of Invested Assets

(Dollars in Millions) (Unaudited)

	March 31, 2011					December 31, 2010					December 31, 2009
	Carrying Value		Percent of Total Investments*			Carrying Value		Percent of Total Investments*			Carrying Value		Percent of Total Investments*
Fixed Maturities Reported at Fair Value:
U.S. Government and Government Agencies and Authorities	$	541.3		8.7	%	$	536.9		8.6	%	$	720.9		12.0	%
States, and Political Subdivisions		1,762.1		28.2	%		1,792.8		28.7	%		1,745.3		28.9	%
Corporate Securities:
Bonds and Notes		2,091.0		33.5	%		2,049.0		32.8	%		1,931.6		32.0	%
Redeemable Preferred Stocks		89.0		1.4	%		88.3		1.4	%		150.4		2.5	%
Mortgage and Asset-backed		8.5		0.1	%		8.3		0.2	%		13.2		0.2	%
Total Fixed Maturities Reported at Fair Value		4,491.9		71.9	%		4,475.3		71.7	%		4,561.4		75.6	%
Equity Securities Reported at Fair Value:
Preferred Stocks		124.8		2.0	%		125.1		2.0	%		115.1		1.9	%
Common Stocks
Intermec		107.0		1.7	%		137.5		2.2	%		—		0.0	%
Other Equities		121.7		1.9	%		133.4		2.1	%		41.2		0.7	%
Other Equity Interests
Exchange Traded Funds		83.6		1.3	%		79.2		1.3	%		—		0.0	%
Limited Liability Companies and Limited Partnerships		74.6		1.2	%		75.2		1.2	%		39.1		0.6	%
Total Equity Securities Reported at Fair Value		511.7		8.2	%		550.4		8.8	%		195.4		3.2	%
Investee (Intermec) at Cost Plus Cumulative Undistributed Earnings		—		0.0	%		—		0.0	%		98.4		1.6	%
Equity Method Limited Liability Investments		326.0		5.2	%		328.0		5.2	%		285.5		4.7	%
Short-term Investments at Cost which Approximates Fair Value		415.8		6.7	%		402.9		6.4	%		397.0		6.6	%
Other Investments
Loans to Policyholders at Unpaid Principal		240.7		3.9	%		238.4		3.8	%		223.6		3.7	%
Real Estate at Depreciated Cost		249.3		4.0	%		249.9		4.0	%		257.1		4.3	%
Trading Securities at Fair Value		5.2		0.1	%		5.1		0.1	%		4.6		0.1	%
Other		0.8		0.0	%		0.8		0.0	%		0.8		0.0	%
Total Other Investments		496.0		7.9	%		494.2		7.9	%		486.1		8.1	%
Total Investments	$	6,241.4		100.0	%	$	6,250.8		100.0	%	$	6,023.8		100.0	%
S&P Equivalent Rating for Fixed Maturities
AAA, AA, A	$	3,478.3		77.4	%	$	3,493.7		78.1	%	$	3,678.4		80.6	%
BBB		732.3		16.3	%		733.1		16.4	%		650.3		14.3	%
BB		114.4		2.5	%		105.3		2.3	%		110.4		2.4	%
B		56.9		1.3	%		52.3		1.2	%		27.1		0.6	%
CCC		93.4		2.1	%		76.6		1.7	%		74.1		1.6	%
In or Near Default		16.6		0.4	%		14.3		0.3	%		21.1		0.5	%
Total Investments in Fixed Maturities	$	4,491.9		100.0	%	$	4,475.3		100.0	%	$	4,561.4		100.0	%

* Sum of percentages for individual lines does not equal subtotals and grand total due to rounding.

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Unitrin, Inc.

Investment Concentration

(Dollars in Millions) (Unaudited)

	March 31, 2011					December 31, 2010					December 31, 2009
Fair Value of Non-governmental Fixed Maturities by Industry	Amount		Percent of Total Investments			Amount		Percent of Total Investments			Amount		Percent of Total Investments
Manufacturing	$	1,028.9		16.5	%	$	1,023.6		16.4	%	$	928.8		15.4	%
Finance, Insurance and Real Estate		581.0		9.3	%		566.4		9.1	%		608.8		10.1	%
Transportation, Communication and Utilities		228.2		3.7	%		229.7		3.7	%		236.2		3.9	%
Services		195.2		3.1	%		186.3		3.0	%		181.9		3.0	%
Mining		64.5		1.0	%		52.0		0.8	%		58.4		1.0	%
Wholesale Trade		37.8		0.6	%		36.5		0.6	%		33.3		0.6	%
Retail Trade		35.3		0.6	%		33.5		0.5	%		32.3		0.5	%
Agriculture, Forestry and Fishing		17.0		0.3	%		17.0		0.3	%		14.9		0.2	%
Other		0.6		0.0	%		0.6		0.0	%		0.6		0.0	%
Total Fair Value of Non-governmental Fixed Maturities	$	2,188.5		35.1	%	$	2,145.6		34.4	%	$	2,095.2		34.7	%

March 31, 2011 Ten Largest Investment Exposures (1)	Fair Value		Percent of Total Investments
Intermec:
Equity Securities—Common Stock	$	107.0		1.7	%
Tennenbaum Opportunities Fund V, LLC:
Equity Method Limited Liability Investments		95.2		1.5	%
State of Texas and Political Subdivisions Thereof:
Fixed Maturities		83.4		1.4	%
Special Value Opportunity Fund, LLC:
Equity Method Limited Liability Investments		82.2		1.3	%
State of Louisiana and Political Subdivisions Thereof:
Fixed Maturities		71.7		1.2	%
State of Ohio and Political Subdivisions Thereof:
Fixed Maturities		64.6		1.0	%
State of Washington and Political Subdivisions Thereof:
Fixed Maturities		64.5		1.0	%
State of Wisconsin and Political Subdivisions Thereof:
Fixed Maturities		63.3		1.0	%
Goldman Sachs Vintage IV, L.P.:
Equity Method Limited Liability Investments		56.3		0.9	%
State of Colorado and Political Subdivisions Thereof:
Fixed Maturities		54.1		0.9	%
	$	742.3		11.9	%

(1) Excluding Investments in U.S. Government and Government Agencies and Authorities and Bonds Pre-refunded with U.S. Government and Government Agencies Held in Trust at March 31, 2011

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Unitrin, Inc.

Municipal Bond Securities excluding Pre-refunded with U.S. Government Held in Trust

(Dollars in Millions) (Unaudited)

	As of March 31, 2011
	State General Obligation		Political Subdivision General Obligation		Revenue		Total Fair Value		Percent of Total
Texas	$	50.4	$	14.0	$	19.0	$	83.4		6.2	%
Louisiana		37.7		9.3		24.7		71.7		5.3	%
Ohio		44.3		—		20.3		64.6		4.8	%
Washington		40.5		4.1		19.9		64.5		4.8	%
Wisconsin		63.3		—		—		63.3		4.7	%
Colorado		—		18.6		35.5		54.1		4.0	%
Alaska		48.7		—		2.3		51.0		3.8	%
New York		19.7		—		30.7		50.4		3.7	%
Florida		49.3		—		0.1		49.4		3.7	%
Pennsylvania		41.5		5.1		1.6		48.2		3.6	%
Hawaii		44.3		3.1		—		47.4		3.5	%
Connecticut		44.4		—		—		44.4		3.3	%
Massachusetts		20.0		—		20.2		40.2		3.0	%
Illinois		34.1		1.8		3.2		39.1		2.9	%
Nevada		31.9		1.0		—		32.9		2.4	%
New Jersey		9.9		4.9		16.9		31.7		2.4	%
Virginia		8.1		16.5		6.1		30.7		2.3	%
Georgia		7.4		12.0		11.0		30.4		2.3	%
Oregon		28.3		—		0.6		28.9		2.1	%
Arkansas		28.2		—		—		28.2		2.1	%
North Carolina		15.2		4.7		7.0		26.9		2.0	%
Indiana		—		4.1		22.7		26.8		2.0	%
Mississippi		22.4		—		4.0		26.4		2.0	%
California		17.3		1.0		5.4		23.7		1.8	%
Missouri		3.2		4.1		15.7		23.0		1.7	%
Minnesota		12.4		9.9		—		22.3		1.6	%
Iowa		—		1.0		20.7		21.7		1.6	%
Tennessee		4.4		10.9		3.1		18.4		1.4	%
West Virginia		18.4		—		—		18.4		1.4	%
Rhode Island		18.2		—		—		18.2		1.3	%
Delaware		12.8		—		5.1		17.9		1.3	%
Nebraska		—		11.8		4.6		16.4		1.2	%
Arizona		—		8.0		6.7		14.7		1.1	%
Kentucky		— ��		1.0		12.6		13.6		1.0	%
Utah		—		3.4		9.1		12.5		0.9	%
Michigan		—		—		11.3		11.3		0.8	%
Oklahoma		—		4.0		6.7		10.7		0.8	%
Maryland		—		7.5		3.0		10.5		0.8	%
Kansas		—		6.2		4.1		10.3		0.8	%
All Other States		13.1		13.6		21.8		48.5		3.6	%
Total	$	789.4	$	181.6	$	375.7	$	1,346.7		100.0	%

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Unitrin, Inc.

Investments in Limited Liability Investment Companies and Limited Partnerships

(Dollars in Millions) (Unaudited)

		Unfunded Commitment March  31, 2011		Carrying Value				Stated Fund End Date
	Asset Class			March 31, 2011		December 31, 2010
Reported as Equity Method Limited Liability Investments at Cost Plus Cumulative Undistributed Earnings:
Tennenbaum Opportunities Fund V, LLC	Distressed Debt	$	—	$	95.2	$	91.4		10/10/2016
Special Value Opportunity Fund, LLC	Distressed Debt		—		82.2		86.8		7/13/2014
Goldman Sachs Vintage Fund IV, L.P.	Secondary Transactions		23.0		56.3		58.9		12/31/2016
Special Value Continuation Fund, LLC	Distressed Debt		—		25.7		26.8		6/30/2016
NY Life Investment Management Mezzanine Partners II, LP	Mezzanine Debt		2.4		20.6		20.5		7/31/2016
BNY Mezzanine Partners L.P.	Mezzanine Debt		2.0		13.6		14.1		4/17/2016
Ziegler Meditech Equity Partners, LP	Growth Equity		2.3		13.9		10.4		1/31/2016
BNY-Alcentra Mezzanine Partners III, L.P.	Mezzanine Debt		40.2		3.8		4.5		2021-2022
Other Funds			4.3		14.7		14.6		Various
Total Equity Method Limited Liability Investments			74.2		326.0		328.0
Reported as Other Equity Interests and Reported at Fair Value:
Highbridge Principal Strategies Fund L.P.	Mezzanine Debt		11.7		13.4		11.4		1/23/2018
Goldman Sachs Vintage Fund V, L.P.	Secondary Transaction		11.6		9.5		8.7		12/31/2018
Goldman Sachs Mezzanine Partners V, L.P.	Mezzanine Debt		15.9		7.4		8.4		12/31/2021
Other Funds			28.9		44.3		46.7		Various
Total Reported as Other Equity Interests and Reported at Fair Value			68.1		74.6		75.2
Total		$	142.3	$	400.6	$	403.2

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Unitrin, Inc.

Definitions of Non-GAAP Financial Measures

We believe that investors’ understanding of Unitrin’s performance is enhanced by our disclosure of the following non-GAAP financial measures. Our methods for calculating these measures may differ from those used by other companies and therefore comparability may be limited.

Book Value Per Share Excluding Unrealized Gains on Fixed Maturities, is a ratio that uses a non-GAAP financial measure. It is calculated by dividing shareholders’ equity after excluding the impact of unrealized net capital gains and losses on fixed income securities by total Common Shares Issued and Outstanding. Book value per share is the most directly comparable GAAP financial measure. We use the trend in book value per share, excluding the impact of unrealized net capital gains and losses on fixed income securities in conjunction with book value per share to identify and analyze the change in net worth attributable to management efforts between periods. We believe the non-GAAP financial measure is useful to investors because it eliminates the effect of items that can fluctuate significantly from period to period and are generally driven by economic developments, primarily capital market conditions, the magnitude and timing of which are generally not influenced by management. We believe it enhances understanding and comparability of performance by highlighting underlying business activity and profitability drivers. 

Book Value Per Share Excluding Goodwill, is a ratio that uses a non-GAAP financial measure. It is calculated by dividing shareholders’ equity after excluding the recorded Goodwill asset. Book value per share is the most directly comparable GAAP financial measure. Book Value Per Share, Excluding Goodwill, also referred to as Tangible Book Value Per Share, is a common measure used by analysts and investors to compare similar companies.

Underlying Combined Ratiois a non-GAAP financial measure, which is computed by adding the Current Year Non-catastrophe Losses and LAE Ratio with the Incurred Expense Ratio. The most directly comparable GAAP financial measure is the combined ratio. We believe the underlying combined ratio is useful to investors and is used by management to reveal the trends in our Property and Casualty business that may be obscured by catastrophe losses and prior year reserve development. These catastrophe losses cause our loss trends to vary significantly between periods as a result of their incidence of occurrence and magnitude, and can have a significant impact on the combined ratio. Prior year reserve developments are caused by unexpected loss development on historical reserves. Because reserve development relates to the re-estimation of losses from earlier periods, it has no bearing on the performance of our insurance products in the current period. We believe it is useful for investors to evaluate these components separately and in the aggregate when reviewing our underwriting performance. The underlying combined ratio should not be considered a substitute for the combined ratio and does not reflect the overall underwriting profitability of our business.

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