MOODY’S PUTS UNITRIN (SENIOR DEBT AT A3) AND UNITED INSURANCE CO. OF AMERICA (FINANCIAL STRENGTH AT Aa3) ON REVIEW FOR POSSIBLE DOWNGRADE

Trinity Universal Insurance Company Affirmed at A2

Published on June 25, 2004

Jersey City, June 25, 2004 -- Moody's Investors Service put Unitrin, Inc.'s (Unitrin) A3 senior unsecured debt and United Insurance Company of America's (United) Aa3 insurance financial strength ratings on review for possible downgrade. The rating agency affirmed Trinity Universal Insurance Company's (Trinity) A2 insurance financial strength rating with a stable outlook.

Moody's says that the rating review was prompted by changes in United's credit-risk profile, adding that these changes have the potential to affect Unitrin's senior unsecured debt rating because the holding company's rating reflects the financial strength of Unitrin's principal operating companies—United and Trinity. The rating agency states that its review will focus on the impact of these changes on United and Unitrin.

Among the changes that have occurred at United, Moody's cites particularly a significant subtraction of capital at the company. Unitrin actively redeployed capital from United and infused it into its growing property & casualty insurance business at Trinity. Notably, United's capital shrank by approximately three-quarters between year-end 2000 and year-end 2003. Moody's also notes continuing steady declines in insurance revenue and operating profitability at United.

Moody's affirmed the A2 insurance financial strength rating of Trinity -- Unitrin's lead property and casualty subsidiary -- based on the following factors: a) the company's steady strong risk-adjusted capitalization; b) the high level of parent company support, as demonstrated by the capital infusions of recent years; and c) the substantial progress in transferring business from the financially strained Kemper Insurance Companies to Unitrin.

In addition, Trinity's operating profitability, which has been a rating concern in recent years, has improved over the last few quarters. As Unitrin's property and casualty operations grow in size in relation to the total enterprise, Moody's points out, the credit profile of the debt at the parent company becomes more dependent on the creditworthiness of the company's property and casualty operations.

The following ratings were placed on review for possible downgrade:

- Unitrin, Inc.'s A3 senior unsecured debt

- United Insurance Company of America's Aa3 insurance financial strength

The following rating was affirmed with a stable outlook:

- Trinity Universal Insurance Company's A2 insurance financial strength

As of March 31, 2004, Unitrin reported total assets of about $8.9 billion and shareholders' equity of approximately $1.9 billion on a GAAP basis.

As of the same date, and on a statutory accounting basis, United had total assets of about $2.1 billion and capital of approximately $292 million, while Trinity had total assets of about $3.2 billion and surplus of approximately $952 million. Unitrin is publicly traded (NYSE: UTR) and is based in Chicago, Illinois.

Moody's insurance financial strength ratings are opinions of the ability of insurance companies to repay punctually senior policyholder claims and obligations. For more information, visit our website at

www.moodys.com/insurance.

New York
Robert P. Donohue
VP - Senior Credit Officer
Financial Institutions Group

Moody's Investors Service

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New York
Robert Riegel
Managing Director
Financial Institutions Group

Moody's Investors Service