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|                             |
|-----------------------------|
|                             |  |  |
| MEDIA:                      |   | ANALYSTS: |
| Brandon Davis, 312-822-5167 |   | James Anderson, 312-822-7757 |
| Sarah Pang, 312-822-6394    |   | Emma Riza, 312-822-5960 |
|                        |   | Robert Tardella, 312-822-4387 |

|         |                                         |
|---------|-----------------------------------------|
| • | Q4 NET INCOME OF $241M; $0.89 PER SHARE |

|         |                                                   |
|---------|---------------------------------------------------|
| • | Q4 NET OPERATING INCOME OF $221M; $0.82 PER SHARE |

|         |                                                       |
|---------|-------------------------------------------------------|
| • | 2016 P&C COMBINED RATIO OF 95.9% VS 95.4% IN 2015 |

|         |                                                                          |
|---------|--------------------------------------------------------------------------|
| • | 12/31/2016 BVPS EX AOCI OF $44.89, UP 7% FOR 2016 ADJUSTED FOR DIVIDENDS |

|         |                                                                            |
|---------|----------------------------------------------------------------------------|
| • | SPECIAL DIVIDEND OF $2.00 PER SHARE; QUARTERLY DIVIDEND OF $0.25 PER SHARE |

|                                               |
|-----------------------------------------------|
|                                               |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                          | Results for the Three Months Ended December 31 |   | Results for the Year Ended December 31 |
| ($ millions, except per share data)           | 2016 |   | 2015 |   | 2016 |   | 2015 |
| Net operating income (loss) (a)               | $ | 221 |  |   | $ | (52 | ) |   | $ | 824 |  |   | $ | 515 |  |
| Net realized investment gains (losses)        | 20 |  |   | (18 | ) |   | 35 |  |   | (36 | ) |
| Net income (loss)                             | $ | 241 |  |   | $ | (70 | ) |   | $ | 859 |  |   | $ | 479 |  |
|                                          |   |   |   |   |   |   |   |
| Net operating income (loss) per diluted share | $ | 0.82 |  |   | $ | (0.19 | ) |   | $ | 3.04 |  |   | $ | 1.90 |  |
| Net income (loss) per diluted share           | 0.89 |  |   | (0.26 | ) |   | 3.17 |  |   | 1.77 |  |

|                                     |
|-------------------------------------|
|                                     |  |  |  |  |  |  |  |
|                                | December 31, 2016 |   | December 31, 2015 |
| Book value per share                | $ | 44.25 |   |   | $ | 43.49 |   |
| Book value per share excluding AOCI |   | 44.89 |   |   |   | 44.66 |   |

|     |                                                                                                                                                                                                                                                                                              |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (a) | Management utilizes the net operating income financial measure to monitor the Company's operations.  Please refer herein and to Note J in the Condensed Consolidated Financial Statements within the September 30, 2016 Form 10-Q for further discussion of this non-GAAP financial measure. |

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|                                                       |
|-------------------------------------------------------|
|                                                       |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                  | Results for the Three Months Ended December 31 |   | Results for the Year Ended December 31 |
| ($ millions)                                          | 2016 |   | 2015 |   | 2016 |   | 2015 |
| Net written premiums                                  | $ | 1,525 |  |   |   | $ | 1,585 |  |   |   | $ | 6,442 |  |   |   | $ | 6,421 |  |   |
| NWP change (% year over year)                         | (4 | ) | % |   | 2 |  | % |   | — |  | % |   | (2 | ) | % |
| Net investment income                                 | $ | 322 |  |   |   | $ | 259 |  |   |   | $ | 1,205 |  |   |   | $ | 1,119 |  |   |
| Net operating income                                  | 217 |  |   |   | 202 |  |   |   | 982 |  |   |   | 966 |  |   |
| Net income                                            | 223 |  |   |   | 176 |  |   |   | 1,002 |  |   |   | 914 |  |   |
|                                                  |   |   |   |   |   |   |   |   |   |   |   |
| Loss ratio excluding catastrophes and development     | 63.4 |  | % |   | 61.7 |  | % |   | 62.8 |  | % |   | 61.9 |  | % |
| Effect of catastrophe impacts                         | 1.8 |  |   |   | 2.4 |  |   |   | 2.6 |  |   |   | 2.2 |  |   |
| Effect of development-related items                   | (0.2 | ) |   |   | (1.2 | ) |   |   | (4.6 | ) |   |   | (3.1 | ) |   |
| Loss ratio                                            | 65.0 |  | % |   | 62.9 |  | % |   | 60.8 |  | % |   | 61.0 |  | % |
|                                                  |   |   |   |   |   |   |   |   |   |   |   |
| Combined ratio                                        | 99.9 |  | % |   | 98.9 |  | % |   | 95.9 |  | % |   | 95.4 |  | % |
| Combined ratio excluding catastrophes and development | 98.3 |  | % |   | 97.7 |  | % |   | 97.9 |  | % |   | 96.3 |  | % |

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|                                                       |
|-------------------------------------------------------|
|                                                       |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                  | Results for the Three Months Ended December 31 |   | Results for the Year Ended December 31 |
| ($ millions)                                          | 2016 |   | 2015 |   | 2016 |   | 2015 |
| Net written premiums                                  | $ | 672 |  |   |   | $ | 704 |  |   |   | $ | 2,780 |  |   |   | $ | 2,781 |  |   |
| NWP change (% year over year)                         | (5) |  | % |   | 2 |  | % |   | — |  | % |   | (2) |  | % |
| Net operating income                                  | $ | 164 |  |   |   | $ | 109 |  |   |   | $ | 650 |  |   |   | $ | 560 |  |   |
| Net income                                            | 166 |  |   |   | 98 |  |   |   | 653 |  |   |   | 538 |  |   |
|                                                  |   |   |   |   |   |   |   |   |   |   |   |
| Loss ratio excluding catastrophes and development     | 64.0 |  | % |   | 63.5 |  | % |   | 62.9 |  | % |   | 62.3 |  | % |
| Effect of catastrophe impacts                         | 0.5 |  |   |   | (0.3 | ) |   |   | 0.6 |  |   |   | 0.4 |  |   |
| Effect of development-related items                   | (11.0 | ) |   |   | (0.1 | ) |   |   | (10.7 | ) |   |   | (5.3 | ) |   |
| Loss ratio                                            | 53.5 |  | % |   | 63.1 |  | % |   | 52.8 |  | % |   | 57.4 |  | % |
|                                                  |   |   |   |   |   |   |   |   |   |   |   |
| Combined ratio                                        | 85.6 |  | % |   | 95.0 |  | % |   | 85.0 |  | % |   | 88.7 |  | % |
| Combined ratio excluding catastrophes and development | 96.1 |  | % |   | 95.4 |  | % |   | 95.1 |  | % |   | 93.6 |  | % |

|         |                                                                                                                                                                                           |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Net operating income increased $55 million for the fourth quarter of 2016 as compared with the prior year quarter, driven by higher favorable net prior year reserve development. |

|         |                                                                                                                                                                                                                                                                                                                                                                                                          |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | The combined ratio improved 9.4 points as compared with the prior year quarter.  The loss ratio improved  9.6 points, driven by higher favorable net prior year development offset by a higher current accident year loss ratio, reflecting an increase in both catastrophe and other large losses.  The expense ratio increased 0.7 points due to ongoing investment in underwriting resources. |

|         |                                                                                                                                                                                                                                                                                                                                                       |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Net written premiums decreased $32 million as compared with the prior year quarter due to a lower level of new business and slightly lower retention due to underwriting actions undertaken in certain business lines.  Average rate was flat for the policies that renewed in the fourth quarter of 2016 while achieving a retention of 86%. |

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|                                                       |
|-------------------------------------------------------|
|                                                       |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                  | Results for the Three Months Ended December 31 |   | Results for the Year Ended December 31 |
| ($ millions)                                          | 2016 |   | 2015 |   | 2016 |   | 2015 |
| Net written premiums                                  | $ | 669 |  |   |   | $ | 700 |  |   |   | $ | 2,841 |  |   |   | $ | 2,818 |  |   |
| NWP change (% year over year)                         | (4 | ) | % |   | 2 |  | % |   | 1 |  | % |   | — |  | % |
| Net operating income                                  | $ | 31 |  |   |   | $ | 96 |  |   |   | $ | 311 |  |   |   | $ | 369 |  |   |
| Net income                                            | 31 |  |   |   | 81 |  |   |   | 313 |  |   |   | 338 |  |   |
|                                                  |   |   |   |   |   |   |   |   |   |   |   |
| Loss ratio excluding catastrophes and development     | 64.0 |  | % |   | 59.3 |  | % |   | 62.1 |  | % |   | 61.6 |  | % |
| Effect of catastrophe impacts                         | 3.0 |  |   |   | 2.7 |  |   |   | 4.1 |  |   |   | 3.6 |  |   |
| Effect of development-related items                   | 14.2 |  |   |   | (1.4 | ) |   |   | 2.5 |  |   |   | (0.1 | ) |   |
| Loss ratio                                            | 81.2 |  | % |   | 60.6 |  | % |   | 68.7 |  | % |   | 65.1 |  | % |
|                                                  |   |   |   |   |   |   |   |   |   |   |   |
| Combined ratio                                        | 118.0 |  | % |   | 99.6 |  | % |   | 105.8 |  | % |   | 101.5 |  | % |
| Combined ratio excluding catastrophes and development | 100.8 |  | % |   | 98.3 |  | % |   | 99.2 |  | % |   | 98.0 |  | % |

|         |                                                                                                                                                                                                                                                                                                          |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Net operating income decreased $65 million for the fourth quarter of 2016 as compared with the prior year quarter.  This decrease was primarily due to the unfavorable period over period effect of net prior year reserve development partially offset by an increase in net investment income. |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | The combined ratio increased 18.4 points as compared with the prior year quarter.  The loss ratio increased 20.6 points driven by unfavorable net prior year development compared to modest favorable development in the prior year quarter.  The unfavorable net prior year development reflects a $90 million increase in reserves related to the Defense Base Act workers’ compensation program that the Company began to run-off in 2012.  The current accident year loss ratio was also negatively affected by an increase in large losses.  Catastrophe losses were $21 million, or 3.0 points of the loss ratio in the fourth quarter of 2016 compared to $18 million, or 2.7 points, for the prior year quarter.  The expense ratio improved 1.7 points in the quarter.  The lower IT infrastructure servicing expense referenced in last quarter’s earnings call was the primary driver of the improvement. |

|         |                                                                                                                                                                                                                                                                                                               |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Net written premiums decreased $31 million as compared with the prior year quarter due to a decrease in new business as well as premium adjustments in our small business unit.  Average rate was down 1% for the policies that renewed in the fourth quarter of 2016 while achieving a retention of 84%. |

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|                                                       |
|-------------------------------------------------------|
|                                                       |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                  | Results for the Three Months Ended December 31 |   | Results for the Year Ended December 31 |
| ($ millions)                                          | 2016 |   | 2015 |   | 2016 |   | 2015 |
| Net written premiums                                  | $ | 184 |  |   |   | $ | 181 |  |   |   | $ | 821 |  |   |   | $ | 822 |  |   |
| NWP change (% year over year)                         | 2 |  | % |   | (1 | ) | % |   | — |  | % |   | (7 | ) | % |
| Net operating income (loss)                           | $ | 22 |  |   |   | $ | (3 | ) |   |   | $ | 21 |  |   |   | $ | 37 |  |   |
| Net income (loss)                                     | 26 |  |   |   | (3 | ) |   |   | 36 |  |   |   | 38 |  |   |
|                                                  |   |   |   |   |   |   |   |   |   |   |   |
| Loss ratio excluding catastrophes and development     | 59.4 |  | % |   | 63.5 |  | % |   | 64.8 |  | % |   | 61.7 |  | % |
| Effect of catastrophe impacts                         | 1.7 |  |   |   | 10.7 |  |   |   | 3.9 |  |   |   | 3.3 |  |   |
| Effect of development-related items                   | (12.8 | ) |   |   | (3.9 | ) |   |   | (7.7 | ) |   |   | (5.5 | ) |   |
| Loss ratio                                            | 48.3 |  | % |   | 70.3 |  | % |   | 61.0 |  | % |   | 59.5 |  | % |
|                                                  |   |   |   |   |   |   |   |   |   |   |   |
| Combined ratio                                        | 86.1 |  | % |   | 109.9 |  | % |   | 99.1 |  | % |   | 97.6 |  | % |
| Combined ratio excluding catastrophes and development | 97.2 |  | % |   | 103.1 |  | % |   | 102.9 |  | % |   | 99.8 |  | % |

|         |                                                                                                                                                                                                                               |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Net operating results improved $25 million for the fourth quarter of 2016 as compared with the prior year quarter, primarily due to lower catastrophe losses and higher favorable net prior year reserve development. |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | The combined ratio improved 23.8 points as compared with the prior year quarter.  The loss ratio improved 22.0 points primarily due to a decrease in catastrophe losses and higher favorable net prior year reserve development.  Catastrophe losses were $3 million, or 1.7 points of the loss ratio as compared to $22 million, or 10.7 points of the loss ratio for the prior year quarter.  The expense ratio improved 1.8 points in the current quarter primarily due to a decrease in underwriting expenses. |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Net written premiums increased $3 million as compared with the prior year quarter and includes favorable period over period premium development of $5 million.  Excluding the effect of foreign currency exchange rates and premium development, net written premiums for the fourth quarter of 2016 increased 4.3%.  Average rate decreased 1% for the policies that renewed in the fourth quarter of 2016 while achieving a retention of 71%. |

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|                             |
|-----------------------------|
|                             |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                        | Results for the Three Months Ended December 31 |   | Results for the Year Ended December 31 |
| ($ millions)                | 2016 |   | 2015 |   | 2016 |   | 2015 |
| Total operating revenues    | $ | 334 |  |   |   | $ | 299 |  |   |   | $ | 1,301 |  |   |   | $ | 1,259 |  |   |
| Net investment income       | 200 |  |   |   | 164 |  |   |   | 767 |  |   |   | 704 |  |   |
| Net operating income (loss) | 20 |  |   |   | (243 | ) |   |   | 20 |  |   |   | (314 | ) |   |
| Net income (loss)           | 33 |  |   |   | (241 | ) |   |   | 36 |  |   |   | (306 | ) |   |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | In 2015, we recognized a $198 million after-tax charge relating to a premium deficiency and claim reserve strengthening.  Due to the recognition of the premium deficiency and resetting of actuarial assumptions in the fourth quarter of 2015, the operating results for our long term care business in 2016 now reflect the variance between actual experience and the expected results contemplated in our best estimate reserves.  In 2015, results of our long term care business reflected variances between actual experience and actuarial assumptions that were locked-in at policy issuance.  As a result of the reserve assumption unlocking, the 2016 and 2015 results are not comparable. |

|         |                                                                                                                                                                                                                                                                                                                                               |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | The net operating income of $20 million was driven by a favorable release of claim reserves resulting from the annual claims experience study.  The fourth quarter 2016 long term care results were generally in line with expectations as higher net investment income and favorable morbidity more than offset unfavorable persistency. |

|                       |
|-----------------------|
|                       |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                  | Results for the Three Months Ended December 31 |   | Results for the Year Ended December 31 |
| ($ millions)          | 2016 |   | 2015 |   | 2016 |   | 2015 |
| Net investment income | $ | 5 |  |   |   | $ | 5 |  |   |   | $ | 16 |  |   |   | $ | 17 |  |   |
| Interest expense      | 36 |  |   |   | 37 |  |   |   | 155 |  |   |   | 154 |  |   |
| Net operating loss    | (16 | ) |   |   | (11 | ) |   |   | (178 | ) |   |   | (137 | ) |   |
| Net loss              | (15 | ) |   |   | (5 | ) |   |   | (179 | ) |   |   | (129 | ) |   |

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