In addition, the results included a $12 million after-tax gain from the sale of an investment advisory subsidiary.

One was Ehrlich Bober Advisers, a profitable investment subsidiary that had $1.5 billion of tax-exempt securities under management.

Losses at JPMorgan Partners, the company's investment subsidiary, also declined, to $91 million compared with $348 million in the fourth quarter of 2001.

Kemper's investment advisory subsidiary is one of the largest investors in Conseco, holding 6.25 percent of its stock as of the end of March.

"By selling some of the pieces we could demonstrate the value of this stream of earnings from our investment subsidiaries," Mr. Jenrette said.

In fact, it was to protect those investment subsidiaries that the board turned to Mr. Jenrette.

The BankAmerica Corporation said it would sell two investment subsidiaries that manage a total of $12 billion.

Her father is a bond portfolio manager at the North American investment subsidiary of Munich Reinsurance Group.

In 1989, when the others threatened to sue, the investment subsidiary bought its partners out.