ULLICO Inc.

The Company

ULLICO Inc. (ULLICO or the Company) is the nation's only union-focused provider of multi-line insurance, financial services, and administrative solutions. ULLICO provides a broad range of insurance, investment, and fund administration products to members of union-sponsored employee benefit plans and organized workers. Its businesses are segmented in four operating segments:

-Life and Health Insurance – provides group life and AD&D coverage; medical stop loss insurance; speciality health insurance and related products; individual whole and term insurance, and final expense life products.

-Property and Casualty Insurance – offers property and casualty insurance, including fiduciary and union liability, commercial lines, workers’ compensation, and surety bonds

-ULLICO Investment Advisors (UIA) – an SEC-registered investment advisor, UIA provides sales, marketing, reporting, and compliance functions associated with ULLICO’s asset management activities.

-Real Estate Investment Group (REIG) – originates, underwrites, and manages real estate mortgage and equity investment. Its flagship product, “J for Jobs,” provides tax-exempt pension funds with the opportunity for investment in high-quality commercial and multi-family residential projects secured by income-producing, union built, or serviced properties.

The engagement

KPMG Corporate Finance LLC (KPMGCF) provided valuation analyses to the Employee Benefit Plan’s Administrative Committee, administrator of the ULLICO Inc. Pension Plan and Trust, with respect to the valuation of ULLICO common stock held by the Plan as of December 31, 2008. KPMGCF conducted meetings and worked directly with ULLICO management to understand the business and strategic objectives of the Company, and performed financial and other analyses to arrive at a conclusion of value.

Key factors to KPMGCF’s success include deep knowledge of the insurance industry as well as specialized valuation experience in the insurance market.