The operating performance of Unitrin Inc.'s property/casualty subsidiaries has improved, primarily because of the corrective actions it has taken in recent years. In addition, the group's capitalization has improved. As a result, we have revised our outlook on Unitrin Inc. and its operating subsidiaries to stable from negative. We have also affirmed the 'BBB-' counterparty credit rating on the holding company, the 'A-' counterparty credit and financial strength ratings on the property/casualty subsidiaries, and the 'A' counterparty credit and financial strength ratings on the life insurance subsidiaries. On Oct. 19, 2010, Standard&Poor's Ratings Services revised its outlook on Unitrin Inc. and its operating subsidiaries to stable from negative. At the same time, Standard&Poor's affirmed its 'BBB-'
