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DES MOINES, Iowa (November 4, 2003)—AmerUs Group Co. (NYSE: AMH), a leading producer of life insurance and annuity products, today reported third quarter 2003 net income of $40.8 million, or $1.03 per diluted share, a significant increase over last year’s reported results of $26.5 million, or $0.66 per diluted share. Net income for the first nine months of 2003 was $120.3 million, or $3.05 per diluted share, compared with $55.7 million, or $1.36 per diluted share reported a year ago.

Adjusted net operating income for the third quarter of 2003 was $37.2 million, or $0.94 per diluted share, compared with $36.3 million, or $0.91 per diluted share a year ago.⁽¹⁾ Year-to-date adjusted net operating income was $110.4 million, or $2.80 per diluted share compared to $108.5 million or $2.66 per diluted share. Commenting on the company’s results, chairman, president and chief executive officer Roger K. Brooks said, “Our strong fundamentals, combined with the continued improvement in market conditions, have produced substantially improved net income results. We continue to make progress in two important areas: improving our unit costs and our movement to higher margin products.”

Pre-tax operating income for the accumulation segment increased nine percent to $35.2 million during the third quarter of 2003 compared to $32.3 million a year ago. The higher margins on equity-indexed annuities and additional income from funding agreements increased accumulation segment earnings in the quarter. Year-to-date, pre-tax operating income increased 3.5 percent to $94.0 million compared to $90.8 million for the first nine months of 2002.

Sales of fixed annuity products for the quarter increased five percent to $497 million, compared with $473 million in the third quarter of 2002. Year-to-date, fixed annuity sales were $1.4 billion compared to $1.3 billion during the first nine months of 2002. Equity index annuities, the company’s most profitable annuity product, comprised 79 percent and 74 percent of third quarter and year-to-date sales, respectively. Fixed annuity sales for 2003 are expected to be $1.7 billion.

Pre-tax operating income for the protection segment was $28.6 million compared to $30.1 million during the third quarter of 2002. Lower net investment income and the cost of a new reinsurance agreement contributed to the decline in the third quarter. Year-to-date, pre-tax operating income was $95.5 million compared to $95.4 million for the first nine months of 2002.

Third quarter fixed life sales were $26.6 million, compared to $28.3 million in the third quarter of 2002. Year-to-date, fixed life sales were $88.6 million, compared to $96.1 million in the first nine months of 2002. Equity-index life sales, AmerUs Group’s most profitable protection product, amounted to 41 percent of total sales, or $36.7 million through

the first nine months of 2003. Fixed life sales for 2003 are expected to be slightly lower than last year’s record-breaking results.

Net investment income was $244 million in the third quarter of 2003 compared to $257 million in the third quarter of 2002. The decrease was a result of the low interest rate environment as well as increased prepayments of mortgage-backed securities during the third quarter. The portfolio yield during the third quarter of 2003 was 5.63 percent, compared to 6.48 percent in the third quarter of 2002. Year-to-date portfolio yields were 5.88 percent, compared to 6.44 percent in the first nine months of 2002.

The company reaffirmed its 2003 adjusted net operating income guidance of $3.70-$3.80 per diluted share. “Higher new money rates, strong business fundamentals and increased operating efficiencies will allow us to achieve our earnings target for the year,” said Brooks.

Interested parties may listen to a conference call with AmerUs Group’s management discussing third quarter 2003 results by calling (toll free) 888-820-4341 (international 706-679-8569) at 11 a.m. EST on Wednesday, November 5, 2003. An audio replay of AmerUs Group’s call will be available at 2 p.m. EST, November 5, 2003, through November 12, 2003. The replay can be accessed by dialing 800-642-1687 (international: 706-645-9291), Conference ID 3161910.

Further detailed financial information, including operating segment income, investment composition, operating expenses and product distribution by channel, can be

found in AmerUs Group’s Financial Supplement, which is available by accessing the company’s web site at www.amerus.com or by contacting the company’s investor relations department at (515) 362-3695.

This press release contains forward-looking statements within the meaning of The Private Securities Litigation Reform Act of 1995. Forward-looking statements are not based on historical information and relate to future operations, strategies, financial results or other developments. Additionally, forward-looking statements are subject to assumptions, risks and uncertainties. Statements such as “guidance,” “expect,” “anticipate,” “believe,” “goal,” “objective,” “target,” “may,” “should,” “estimate,” “projects,” or similar words as well as specific projections of future results qualify as forward-looking statements. Factors that may cause our actual results to differ materially from those contemplated by these forward-looking statements can be found in the company’s 10-K, filed with the Securities and Exchange Commission. Forward-looking statements speak only as of the date the statement was made and AmerUs Group undertakes no obligation to update such forward-looking statements. There can be no assurance that other factors not currently anticipated by the company will not materially and adversely affect our results of operations. Investors are cautioned not to place undue reliance on any forward-looking statements made by us or on our behalf.

AmerUs Group Co. is located in Des Moines, Iowa, and is engaged through its subsidiaries in the business of marketing individual life insurance and annuity products in the United States. Its major subsidiaries include: AmerUs Life Insurance Company, American Investors Life Insurance Company, Inc., Bankers Life Insurance Company of New York, and Indianapolis Life Insurance Company.

As of September 30, 2003, AmerUs Group’s total assets were $21.8 billion and shareholders’ equity totaled $1.4 billion, including accumulated other comprehensive income.

⁽¹⁾ The company views adjusted net operating income, a non-GAAP financial measure, as an important indicator of financial performance. When presented with net income, the combined presentation can enhance an investor’s understanding of AmerUs Group’s underlying profitability and normalized results from operations. The definition of adjusted net operating earnings, as presented in this press release, excludes the following items on an after-tax basis from net income: open block realized gains and losses, deferred policy acquisition costs associated with open block realized gains and losses, non-insurance operations, restructuring costs, non-recurring reinsurance adjustments and the impact of SFAS 133. Non-GAAP measures are also used for goal setting, determining employee and management compensation and evaluating our performance on a comparable basis to that used by security analysts. A reconciliation of net income to adjusted net operating income has been included as part of this press release.

⁽²⁾ Sales for an insurance company are a non-GAAP financial measure. We do not believe there is a comparable GAAP financial measure and as a result, have not provided reconciliation. Sales are presented in accordance with industry practice and represent the amount of new business sold during the period. We believe sales are a measure of the productivity of our distribution networks. Sales are also a leading indicator of future revenue trends. However, revenues are driven by prior period sales as well as current period sales and therefore, a reconciliation of sales to revenues would not be meaningful or determinable.

⁽³⁾ Adjusted net operating income per share is a non-GAAP financial measure. Due to the unpredictability of the timing and recognition of gains and losses, especially items such as credit impairments, trading gains and losses, FAS 133 adjustments as well as the unpredictable nature of certain other unusual or non-recurring items that management believes are not indicative of ongoing operational performance, guidance on GAAP net income reconciliation of guidance on, adjusted net operating income per share to GAAP net income per share.

AMERUS GROUP CO.
ADJUSTED NET OPERATING INCOME
($ in thousands, except share data)

Adjusted net operating income reflects net income adjusted to eliminate certain items, such as open block realized gains and losses, deferred policy acquisition costs associated with the open block realized gains and losses, non-insurance operations, restructuring costs, reinsurance adjustments and the impact of SFAS 133. Adjusted net operating income shown below does not constitute our net income computed in accordance with GAAP. The adjustments are presented net of income taxes.


		For The Three Months Ended						For The Nine Months Ended
		September 30,						September 30,
		2003			2002			2003			2002

Net Income		$	40,835		$	26,490		$	120,340		$	55,667
Realized (gains) losses on open block investments (A)			(3,805	)		6,825			(19,721	)		36,400
Net amortization of DAC and VOBA due to open block gains or losses (B)			90			(1,709	)		6,488			(6,875	)
Net effect of accounting differences from SFAS 133 (C)			(313	)		3,284			(3,388	)		17,407
Demutualization costs (D)			—			722			—			1,186
Restructuring costs (E)			989			1,590			11,222			6,644
Other income from non-insurance operations (F)			(601	)		(949	)		(1,997	)		(1,945	)
Non-recurring reinsurance adjustments (G)			—			—			(2,505	)		—

Adjusted Net Operating Income		$	37,195		$	36,253		$	110,439		$	108,484

Adjusted Net Operating Income per common share:
	Basic	$	0.95		$	0.92		$	2.82		$	2.69

	Diluted	$	0.94		$	0.91		$	2.80		$	2.66

Weighted average common shares outstanding:
	Basic		39,208,151			39,497,355			39,144,872			40,327,236

	Diluted		39,650,473			39,835,426			39,453,126			40,812,121

(A)

Represents total open block realized gains or losses on investments. Open block realized gains or losses may vary widely between periods. Such amounts are determined by management’s timing of individual transactions or current market conditions and do not necessarily correspond to the underlying operating trends.

(B)

Represents amortization of deferred acquisition costs (DAC) and value of business acquired (VOBA) on the open block realized gains and losses that are included in our product margins.

(C)

Represents the net effect of SFAS 133, “Accounting for Derivative Instruments and Hedging Activities,” related accounting entries. The accounting entries consist of cash flow hedge amortization, market value adjustments on trading securities, derivatives, equity-indexed contracts, and the associated change in amortization of DAC and VOBA resulting from such adjustments.

(D)

Represents costs directly related to our demutualizations. The costs consist primarily of legal, actuarial and consulting expenses.

(E)

Represents costs of restructuring our operations to eliminate duplicative functions and to merge IL Annuity and Insurance Company (ILA) into Indianapolis Life Insurance Company (ILIC). The costs consist primarily of relocation of employees, severance and termination benefits, impairment loss on the ILIC office building of $5.0 million in the second quarter of 2003, systems conversion, and merger related expenses.

(F)

Represents the net income from our residential financing and property operations which is not part of our insurance operations.

(G)

Represents adjustments for the release of a $5.3 million liability in conjunction with the settlement and amendment of a reinsurance arrangement and a $2.8 million true-up of pre-2003 reinsurance settlements under a reinsurance arrangement between the ILIC open block and closed block. As these items are not of a continuing nature, they are excluded from adjusted net operating income.

AMERUS GROUP CO.
CONSOLIDATED STATEMENTS OF INCOME
($ in thousands, except share data)


		For The Three Months Ended September 30,						For The Nine Months Ended September 30,
		2003			2002			2003		2002

Revenues:
	Insurance premiums	$	64,355		$	80,926		$	225,597	$	263,262
	Product charges		40,634			37,054			136,168		111,110
	Net investment income		244,278			256,732			751,098		748,399
	Realized gains (losses) on investments		9,770			(11,632	)		41,566		(58,019	)
	Unrealized gains (losses) on investments		(1,228	)		(10,319	)		33,799		(64,555	)
	Other income		17,757			20,634			53,073		53,568

			375,566			373,395			1,241,301		1,053,765

Benefits and expenses:
	Policyowner benefits		195,020			225,201			673,145		643,648
	Underwriting, acquisition and other expenses		40,734			38,485			114,533		122,276
	Demutualization costs		—			722			—		1,186
	Restructuring costs		1,551			2,569			17,415		10,780
	Amortization of deferred policy acquisition costs and value of business acquired		47,780			35,289			147,755		103,452
	Dividends to policyowners		22,016			24,377			86,330		72,000

			307,101			326,643			1,039,178		953,342

Income before interest and income tax expense			68,465			46,752			202,123		100,423
Interest expense			7,864			6,414			22,238		18,778

Income before income tax expense			60,601			40,338			179,885		81,645
Income tax expense			19,766			13,848			59,545		25,978

Net income		$	40,835		$	26,490		$	120,340	$	55,667

Net income per common share:
	Basic	$	1.04		$	0.67		$	3.07	$	1.38

	Diluted	$	1.03		$	0.66		$	3.05	$	1.36

Weighted average common shares outstanding:
	Basic		39,208,151			39,497,355			39,144,872		40,327,236

	Diluted		39,650,473			39,835,426			39,453,126		40,812,121


				September 30,		December 31,
				2003		2002

Assets
Investments:
	Securities available-for-sale at fair value:
		Fixed maturity securities		$	14,218,810	$	13,328,902
		Equity securities			71,475		63,345
		Short-term investments			23,308		32,318
	Securities held for trading purposes:
		Fixed maturity securities			1,840,758		1,843,868
		Equity securities			537		—
	Mortgage loans				939,975		883,034
	Real estate				33		476
	Policy loans				491,512		496,753
	Other investments				389,756		283,794

			Total investments		17,976,164		16,932,490
Cash and cash equivalents					681,607		102,612
Accrued investment income					198,515		185,660
Premiums, fees and other receivables					40,886		13,082
Reinsurance receivables					663,020		865,930
Deferred policy acquisition costs					1,001,877		884,239
Value of business acquired					428,459		454,159
Goodwill					224,075		218,995
Property and equipment					49,016		74,188
Other assets					332,818		326,397
Separate account assets					243,464		235,913

			Total assets	$	21,839,901	$	20,293,665


				September 30,			December 31,
				2003			2002

Liabilities and Stockholders’ Equity
Liabilities:
	Policy reserves and policyowner funds:
		Future life and annuity policy benefits		$	16,723,784		$	16,244,016
		Policyowner funds			1,537,345			1,335,144

					18,261,129			17,579,160
	Accrued expenses and other liabilities				869,770			283,836
	Dividends payable to policyowners				353,828			303,062
	Policy and contract claims				32,731			39,569
	Income taxes payable				54,813			61,325
	Deferred income taxes				59,712			16,499
	Notes payable				552,670			511,353
	Separate account liabilities				243,464			235,913

			Total liabilities		20,428,117			19,030,717
Stockholders’ equity:
	Preferred Stock, no par value, 20,000,000 shares authorized, none issued				—			—
	Common Stock, no par value, 230,000,000 shares authorized; 43,816,580 shares issued and 39,171,878 shares outstanding in 2003; 43,656,280 shares issued and 39,011,578 shares outstanding in 2002				43,817			43,656
	Additional paid-in capital				1,183,541			1,179,646
	Accumulated other comprehensive income				114,197			88,522
	Unearned compensation				(1,730	)		(458	)
	Unallocated ESOP shares				(1,406	)		(1,443	)
	Retained earnings				229,857			109,517
	Treasury stock, at cost (4,644,702 shares in 2003 and 2002)				(156,492	)		(156,492	)

			Total stockholders’ equity		1,411,784			1,262,948

			Total liabilities and stockholders’ equity	$	21,839,901		$	20,293,665

AMERUS GROUP CO.
CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY
For the Nine Months Ended September 30, 2003 and the Year Ended December 31, 2002
($ in thousands)


							Accumulated
				Additional			Other						Unallocated									Total
				Paid-In			Comprehensive			Unearned			ESOP			Retained			Treasury			Stockholders’
		Common Stock		Capital			Income			Compensation			Shares			Earnings			Stock			Equity

Balance at December 31, 2001		$	43,506	$	1,177,688		$	12,669		$	(727	)	$	(224	)	$	62,187		$	(56,582	)	$	1,238,517
2002:
	Net income		—		—			—			—			—			62,866			—			62,866
	Net unrealized gain on securities		—		—			73,646			—			—			—			—			73,646
	Net unrealized gain on derivatives designated as cash flow hedges		—		—			3,434			—			—			—			—			3,434
	Stock issued under various incentive plans, net of forfeitures		150		5,730			—			269			—			—			1			6,150
	Stock issued under exercise of warrants		—		(3,802	)		—			—			—			—			12,205			8,403
	Purchase of treasury stock and ESOP shares		—		—			—			—			(2,522	)		—			(112,116	)		(114,638	)
	Dividends declared on common stock		—		—			—			—			—			(15,536	)		—			(15,536	)
	Allocation of shares in leveraged ESOP		—		30			—			—			1,303			—			—			1,333
	Minimum pension liability adjustment		—		—			(1,227	)		—			—			—			—			(1,227	)

Balance at December 31, 2002			43,656		1,179,646			88,522			(458	)		(1,443	)		109,517			(156,492	)		1,262,948
2003:
	Net income		—		—			—			—			—			120,340			—			120,340
	Net unrealized gain (loss) on securities		—		—			23,510			—			—			—			—			23,510
	Net unrealized gain (loss) on derivatives designated as cash flow hedges		—		—			2,165			—			—			—			—			2,165
	Stock issued under various incentive plans, net of forfeitures		161		11,162			—			(1,272	)		—			—			—			10,051
	PRIDES purchase contract adjustments and allocated fees and expenses		—		(7,267	)		—			—			—			—			—			(7,267	)
	Allocation of shares in leveraged ESOP		—		—			—			—			37			—			—			37

Balance at September 30, 2003		$	43,817	$	1,183,541		$	114,197		$	(1,730	)	$	(1,406	)	$	229,857		$	(156,492	)	$	1,411,784


FOR IMMEDIATE RELEASE		For more information, contact:
		Marty Ketelaar, Director,
		Investor Relations
		(515) 362-3693