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Form 8-K/A KEMPER Corp For: May 02

May 3, 2022 6:07 AM EDT

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Exhibit 99.1
 

kemperlogocolorwebfinala05.jpg
Kemper Corporation
200 East Randolph Street
Suite 3300
Chicago, IL 60601
kemper.com

Press Release
Kemper Reports First Quarter 2022 Operating Results
CHICAGO, May 2, 2022 Kemper Corporation (NYSE: KMPR) reported net loss of $94.8 million, or $(1.49) per diluted share, for the first quarter of 2022, compared to net income of $123.2 million, or $1.85 per diluted share, for the first quarter of 2021. As Adjusted for Acquisitions1 of American Access Casualty Company (“AAC”) and Infinity Property and Casualty Corporation, net loss was $91.3 million, or $(1.43) per diluted share, for the first quarter of 2022, compared to net income of $131.1 million, or $1.97 per diluted share, for the first quarter of 2021. In the first quarter of 2022, net loss included a $22.3 million after-tax loss, or $(0.35) per diluted share, attributable to the change in fair value of equity and convertible securities.
Adjusted Consolidated Net Operating Loss1 was $60.1 million, or $(0.94) per diluted share, for the first quarter of 2022, compared to Adjusted Consolidated Net Operating Income1 of $87.2 million, or $1.31 per diluted share, for the first quarter of 2021.
Key themes of the quarter include:
Profitability actions to improve Personal Automobile margins taking hold despite persistent environmental headwinds.
Specialty and Preferred Personal Automobile both reflect 11 points of quarter over quarter Underlying Combined Ratio1 improvement
Personal Automobile policies-in-force declined, driven by focused rate and underwriting actions resulting in lower new business activity
Debt offerings at attractive rates provide additional flexibility and strengthen parent company liquidity to $1.2 billion
Life persistency remains elevated over pre-pandemic levels, contributing to earned premium growth
Declared dividend of $0.31 per share


“Our first quarter results showed a marked improvement in our performance from the prior quarter, and we’re pleased that our profit restoration actions are beginning to offset the pandemic-related reopening challenges,” said Joseph P. Lacher, Jr. President, CEO and Chairman. “Our P&C auto businesses continue to face significant incremental inflation-driven loss severity pressure. Despite industry headwinds, our pricing sophistication capabilities and profit restoration activities more than offset these challenges. As a result, we delivered an underlying combined ratio improvement of 11 points in our auto books compared to last quarter. In our Life and Health segment, we continue to see strong demand for our products, while our near-term results continue to be hampered by the pandemic and excess benefit costs.

“Amid these ongoing environmental challenges, our balance sheet remains strong. We have over $1.2 billion of liquidity and our insurance entities are well-capitalized. We remain focused and committed in our approach to combat this environment, with continued swift execution to enable a return to target profitability and position us for long-term profitable growth.”
1 Non-GAAP financial measure. All Non-GAAP financial measures are denoted with footnote 1 throughout this release. See “Use of Non-GAAP Financial Measures” for additional information.


 Three Months Ended
(Dollars in Millions, Except Per Share Amounts) (Unaudited)Mar 31,
2022
Mar 31,
2021
Net Income (Loss)$(94.8)$123.2 
Adjusted Consolidated Net Operating Income (Loss) 1
$(60.1)$87.2 
Impact of Catastrophe Losses and Related Loss Adjustment Expense (LAE) on Net Income
$(11.0)$(21.8)
Diluted Net Income (Loss) Per Share From:
Net Income (Loss)$(1.49)$1.85 
Adjusted Consolidated Net Operating Income (Loss) 1
$(0.94)$1.31 
Impact of Catastrophe Losses and Related LAE on Net Income (Loss) Per Share$(0.17)$(0.33)
Revenues
Total revenues for the first quarter of 2022 increased $36.7 million, or 3 percent, to $1,388.7 million, compared to the first quarter of 2021, driven by $144.0 million of higher Specialty P&C earned premiums, partially offset by a $80.4 million decrease attributable to the change in fair value of equity and convertible securities. Specialty P&C earned premiums increased due primarily to the acquisition of AAC. Net investment income decreased $3.1 million to $100.0 million in the first quarter of 2022 compared to the first quarter of 2021 due primarily to lower return from Alternative Investments and lower yields on fixed income securities, partially offset by higher levels of investments and rate on Company-Owned Life Insurance. Net realized investment gains were $1.5 million in the first quarter of 2022, compared to a $13.8 million in the first quarter of 2021.



2


Segment Results
Unless otherwise noted, (i) the segment results discussed below are presented on an after-tax basis, (ii) prior-year development includes both catastrophe and non-catastrophe losses and LAE, (iii) catastrophe losses and LAE exclude the impact of prior-year development, (iv) loss ratio includes loss and LAE, and (v) all comparisons are made to the prior year quarter unless otherwise stated.
Three Months Ended
(Dollars in Millions) (Unaudited)Mar 31,
2022
Mar 31,
2021
Segment Net Operating Income (Loss):
Specialty Property & Casualty Insurance$(44.7)$80.1 
Preferred Property & Casualty Insurance(6.1)9.6 
Life & Health Insurance3.1 7.3 
Total Segment Net Operating Income (Loss)(47.7)97.0 
Corporate and Other Net Operating Income (Loss)(12.4)(9.8)
Adjusted Consolidated Net Operating Income (Loss) 1
(60.1)87.2 
Net Income (Loss) From:
Change in Fair Value of Equity and Convertible Securities(22.3)41.2 
Net Realized Gains on Sales of Investments1.2 10.9 
Impairment Losses(7.0)(3.2)
Acquisition Related Transaction, Integration and Other Costs(3.7)(12.9)
Loss from Early Extinguishment of Debt(2.9)— 
Net Income (Loss)$(94.8)$123.2 
The Specialty Property & Casualty Insurance segment reported net operating loss of $44.7 million for the first quarter of 2022, compared to net operating income of $80.1 million in the first quarter of 2021. Results decreased due primarily to a higher Underlying Combined Ratio1. The segment’s Underlying Combined Ratio1 was 108.7 percent, compared to 93.5 percent in the first quarter of 2021. This increase is driven primarily by ongoing inflation and supply chain constraints.
The Preferred Property & Casualty Insurance segment reported net operating loss of $6.1 million for the first quarter of 2022, compared to net operating income of $9.6 million in the first quarter of 2021. Results deteriorated due primarily to a higher Underlying Combined Ratio1, partially offset by lower catastrophe losses and LAE. The segment’s Underlying Combined Ratio1 was 105.1 percent, compared to 90.7 percent in the first quarter of 2021. This increase is driven primarily by ongoing inflation and supply chain constraints.
The Life & Health Insurance segment reported net operating income of $3.1 million for the first quarter of 2022, compared to $7.3 million in the first quarter of 2021.









3


Capital
Total Shareholders’ Equity at the end of the quarter was $3,394.5 million, a decrease of $613.2 million, or 15 percent, since year-end 2021 primarily driven by a decrease in the fair value of the Company’s fixed income bond portfolio, a net operating loss, and cash dividends to shareholders. Kemper and its direct non-insurance subsidiaries ended the quarter with cash and investments of $318.3 million, and the $600.0 million revolving credit agreement was undrawn.
On February 2, 2022, Kemper announced that its Board of Directors declared a quarterly dividend of $0.31 per share, or $19.6 million. The dividend was paid on March 1, 2022 to its shareholders of record as of February 14, 2022.
Kemper ended the quarter with a book value per share of $53.21, a decrease of 15 percent from $62.93 at the end of 2021. Book Value Per Share Excluding Net Unrealized (Gains) Losses on Fixed Maturities1 was $53.42, compared to $55.04 at the end of 2021.
4


Unaudited condensed consolidated statements of income for the three months ended March 31, 2022 and 2021 are presented below.
Three Months Ended
(Dollars in Millions, Except Per Share Amounts)
Mar 31,
2022
Mar 31,
2021
Revenues:
Earned Premiums
$1,338.6 $1,200.8 
Net Investment Income
100.0 103.1 
Change in Value of Alternative Energy Partnership Investments2
(16.7)(15.4)
Other Income
2.4 1.5 
Income (Loss) from Change in Fair Value of Equity and Convertible Securities
(28.2)52.2 
Net Realized Gains on Sales of Investments
1.5 13.8 
Impairment Losses(8.9)(4.0)
Total Revenues1,388.7 1,352.0 
Expenses:
Policyholders’ Benefits and Incurred Losses and Loss Adjustment Expenses
1,153.4 889.5 
Insurance Expenses
304.0 283.7 
Loss from Early Extinguishment of Debt3.7 — 
Interest and Other Expenses
54.1 57.2 
Total Expenses1,515.2 1,230.4 
Income (Loss) before Income Taxes (126.5)121.6 
Income Tax Benefit (Expense)31.7 1.6 
Net Income (Loss)$(94.8)$123.2 
Net Income (Loss) Per Unrestricted Share:
Basic
$(1.49)$1.88 
Diluted
$(1.49)$1.85 
Weighted-average Outstanding (Shares in Thousands):
Unrestricted Shares - Basic63,743.7 65,424.6 
Unrestricted Shares and Equivalent Shares - Diluted63,743.7 66,552.8 
Dividends Paid to Shareholders Per Share$0.31 $0.31 

2Loss related to Change in Value of Alternative Energy Partnership Investments was $16.7 million for the three months ended March 31, 2022, compared to $15.4 million for the same period in 2021. Tax benefits related to the Alternative Energy Partnership Investments were $7.0 million and $28.6 million for the three months ended March 31, 2022 and 2021, respectively. This resulted in a net loss of $9.7 million and net income of $13.2 million attributable to Alternative Energy Partnership Investments for the three months ended March 31, 2022 and 2021, respectively.
5


Unaudited business segment revenues for the three months ended March 31, 2022 and 2021 are presented below.
Three Months Ended
(Dollars in Millions)Mar 31,
2022
Mar 31,
2021
REVENUES:
Specialty Property & Casualty Insurance:
Earned Premiums:
Personal Automobile$901.7 $785.4 
Commercial Automobile119.9 92.2 
Total Earned Premiums1,021.6 877.6 
Net Investment Income34.9 35.0 
Change in Value of Alternative Energy Partnership Investments(8.4)(7.3)
Other Income1.7 0.9 
Total Specialty Property & Casualty Insurance Revenues1,049.8 906.2 
Preferred Property & Casualty Insurance:
Earned Premiums:
Personal Automobile96.0 103.0 
Homeowners51.3 50.8 
Other Personal8.3 8.4 
Total Earned Premiums155.6 162.2 
Net Investment Income12.5 15.9 
Change in Value of Alternative Energy Partnership Investments(3.9)(4.1)
Other Income— — 
Total Preferred Property & Casualty Insurance Revenues164.2 174.0 
Life & Health Insurance:
Earned Premiums:
Life101.3 98.1 
Accident & Health45.8 47.4 
Property14.3 15.5 
Total Earned Premiums161.4 161.0 
Net Investment Income49.4 51.1 
Change in Value of Alternative Energy Partnership Investments(4.4)(4.0)
Other Income— 0.1 
Total Life & Health Insurance Revenues206.4 208.2 
Total Segment Revenues1,420.4 1,288.4 
Income (Loss) from Change in Fair Value of Equity and Convertible Securities(28.2)52.2 
Net Realized Gains on Sales of Investments1.5 13.8 
Impairment Losses(8.9)(4.0)
Other3.9 1.6 
Total Revenues$1,388.7 $1,352.0 
6


KEMPER CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in Millions)
(Unaudited)


Mar 31,
2022
Dec 31,
2021
Assets:
Investments:
Fixed Maturities at Fair Value
$7,783.9 $7,986.9 
Equity Securities at Fair Value
571.5 830.6 
Equity Securities at Modified Cost
35.2 32.3 
Equity Method Limited Liability Investments at Cost Plus Cumulative Undistributed Earnings
230.0 241.9 
Alternative Energy Partnership Investments22.4 39.6 
Convertible Securities at Fair Value
46.1 46.4 
Short-term Investments at Cost which Approximates Fair Value
243.8 284.1 
Other Investments
1,035.2 925.6 
Total Investments
9,968.1 10,387.4 
Cash
297.3 148.2 
Receivables from Policyholders
1,404.5 1,418.7 
Other Receivables
203.4 207.3 
Deferred Policy Acquisition Costs
680.0 677.6 
Goodwill
1,312.0 1,312.0 
Current Income Tax Assets
183.0 173.1 
Other Assets
566.4 592.2 
Total Assets
$14,614.7 $14,916.5 
Liabilities and Shareholders’ Equity:
Insurance Reserves:
Life & Health
$3,556.3 $3,540.9 
Property & Casualty
2,760.1 2,772.7 
Total Insurance Reserves
6,316.4 6,313.6 
Unearned Premiums
1,890.5 1,898.7 
Policyholder Contract Liabilities
655.0 504.0 
Deferred Income Tax Liabilities
69.6 227.0 
Accrued Expenses and Other Liabilities
903.5 843.6 
Debt at Amortized Cost
1,385.2 1,121.9 
Total Liabilities
11,220.2 10,908.8 
Shareholders’ Equity:
Common Stock
6.4 6.4 
Paid-in Capital
1,803.1 1,790.7 
Retained Earnings
1,647.3 1,762.5 
Accumulated Other Comprehensive Income
(62.3)448.1 
Total Shareholders’ Equity
3,394.5 4,007.7 
Total Liabilities and Shareholders’ Equity
$14,614.7 $14,916.5 

7


Unaudited selected financial information for the Specialty Property & Casualty Insurance segment follows.
Three Months Ended
(Dollars in Millions)Mar 31,
2022
Mar 31,
2021
Results of Operations
Net Premiums Written$1,023.7 $972.0 
Earned Premiums$1,021.6 $877.6 
Net Investment Income34.9 35.0 
Change in Value of Alternative Energy Partnership Investments(8.4)(7.3)
Other Income1.7 0.9 
Total Revenues1,049.8 906.2 
Incurred Losses and LAE related to:
Current Year:
Non-catastrophe Losses and LAE911.7 650.0 
Catastrophe Losses and LAE2.1 1.7 
Prior Years:
Non-catastrophe Losses and LAE(3.8)(1.4)
Catastrophe Losses and LAE0.7 0.4 
Total Incurred Losses and LAE910.7 650.7 
Insurance Expenses199.3 170.3 
Operating Income (Loss)(60.2)85.2 
Income Tax Benefit (Expense)15.5 (5.1)
Segment Net Operating Income (Loss)$(44.7)$80.1 
Ratios Based On Earned Premiums
Current Year Non-catastrophe Losses and LAE Ratio89.2 %74.1 %
Current Year Catastrophe Losses and LAE Ratio0.2 0.2 
Prior Years Non-catastrophe Losses and LAE Ratio(0.4)(0.2)
Prior Years Catastrophe Losses and LAE Ratio0.1 — 
Total Incurred Loss and LAE Ratio89.1 74.1 
Insurance Expense Ratio19.5 19.4 
Combined Ratio108.6 %93.5 %
Underlying Combined Ratio1
Current Year Non-catastrophe Losses and LAE Ratio89.2 %74.1 %
Insurance Expense Ratio19.5 19.4 
Underlying Combined Ratio1
108.7 %93.5 %
Non-GAAP Measure Reconciliation
Combined Ratio108.6 %93.5 %
Less:
Current Year Catastrophe Losses and LAE Ratio0.2 0.2 
Prior Years Non-catastrophe Losses and LAE Ratio(0.4)(0.2)
Prior Years Catastrophe Losses and LAE Ratio0.1 — 
Underlying Combined Ratio1
108.7 %93.5 %
8


Unaudited selected financial information for the Preferred Property & Casualty Insurance segment follows.
Three Months Ended
(Dollars in Millions)Mar 31,
2022
Mar 31,
2021
Results of Operations
Net Premiums Written$137.4 $154.4 
Earned Premiums$155.6 $162.2 
Net Investment Income12.5 15.9 
Change in Value of Alternative Energy Partnership Investments(3.9)(4.1)
Other Income— — 
Total Revenues164.2 174.0 
Incurred Losses and LAE related to:
Current Year:
Non-catastrophe Losses and LAE112.2 96.2 
Catastrophe Losses and LAE11.4 24.0 
Prior Years:
Non-catastrophe Losses and LAE2.1 0.1 
Catastrophe Losses and LAE(3.2)(0.3)
Total Incurred Losses and LAE122.5 120.0 
Insurance Expenses51.2 51.0 
Operating Income (Loss)(9.5)3.0 
Income Tax Benefit (Expense)3.4 6.6 
Segment Net Operating Income (Loss)$(6.1)$9.6 
Ratios Based On Earned Premiums
Current Year Non-catastrophe Losses and LAE Ratio72.2 %59.3 %
Current Year Catastrophe Losses and LAE Ratio7.3 14.8 
Prior Years Non-catastrophe Losses and LAE Ratio1.3 0.1 
Prior Years Catastrophe Losses and LAE Ratio(2.1)(0.2)
Total Incurred Loss and LAE Ratio78.7 74.0 
Insurance Expense Ratio32.9 31.4 
Combined Ratio111.6 %105.4 %
Underlying Combined Ratio1
Current Year Non-catastrophe Losses and LAE Ratio72.2 %59.3 %
Insurance Expense Ratio32.9 31.4 
Underlying Combined Ratio1
105.1 %90.7 %
Non-GAAP Measure Reconciliation
Combined Ratio111.6 %105.4 %
Less:
Current Year Catastrophe Losses and LAE Ratio7.3 14.8 
Prior Years Non-catastrophe Losses and LAE Ratio1.3 0.1 
Prior Years Catastrophe Losses and LAE Ratio(2.1)(0.2)
Underlying Combined Ratio1
105.1 %90.7 %
9


Unaudited selected financial information for the Life & Health Insurance segment follows.
Three Months Ended
(Dollars in Millions)Mar 31,
2022
Mar 31,
2021
Results of Operations
Earned Premiums$161.4 $161.0 
Net Investment Income49.4 51.1 
Change in Value of Alternative Energy Partnership Investments(4.4)(4.0)
Other Income (Loss)— 0.1 
Total Revenues206.4 208.2 
Policyholders’ Benefits and Incurred Losses and LAE120.1 118.7 
Insurance Expenses85.1 90.3 
Operating Income (Loss)1.2 (0.8)
Income Tax Benefit (Expense)1.9 8.1 
Segment Net Operating Income (Loss)$3.1 $7.3 
Use of Non-GAAP Financial Measures
Adjusted Consolidated Net Operating Income (Loss)1 is an after-tax, non-GAAP financial measure and is computed by excluding from Net Income (Loss) the after-tax impact of:
(i) Income (Loss) from Change in Fair Value of Equity and Convertible Securities;
(ii) Net Realized Gains or Losses on Sales of Investments;
(iii) Impairment Losses;
(iv) Acquisition Related Transaction, Integration and Other Costs;
(v) Debt Extinguishment, Pension and Other Charges; and
(vi) Significant non-recurring or infrequent items that may not be indicative of ongoing operations

Significant non-recurring items are excluded when (a) the nature of the charge or gain is such that it is reasonably unlikely to recur within two years, and (b) there has been no similar charge or gain within the prior two years. The most directly comparable GAAP financial measure is Net Income (Loss). There were no applicable significant non-recurring items that Kemper excluded from the calculation of Adjusted Consolidated Net Operating Income (Loss)1 for the three months ended March 31, 2022 or 2021.

Kemper believes that Adjusted Consolidated Net Operating Income (Loss)1 provides investors with a valuable measure of its ongoing performance because it reveals underlying operational performance trends that otherwise might be less apparent if the items were not excluded. Income (Loss) from Change in Fair Value of Equity and Convertible Securities, Net Realized Gains or Losses on Sales of Investments and Impairment Losses related to investments included in Kemper’s results may vary significantly between periods and are generally driven by business decisions and external economic developments such as capital market conditions that impact the values of the Kemper’s investments, the timing of which is unrelated to the insurance underwriting process. Acquisition Related Transaction and Integration Costs may vary significantly between periods and are generally driven by the timing of acquisitions and business decisions which are unrelated to the insurance underwriting process. Debt Extinguishment, Pension and Other Charges relate to (i) loss from early extinguishment of debt, which is driven by Kemper’s financing and refinancing decisions and capital needs, as well as external economic developments such as debt market conditions, the timing of which is unrelated to the insurance underwriting process; (ii) settlement of pension plan obligations which are business decisions made by Kemper, the timing of which is unrelated to the underwriting process; and (iii) other charges that are non-standard, not part of the ordinary course of business, and unrelated to the insurance underwriting process. Significant non-recurring items are excluded because, by their nature, they are not indicative of the Kemper’s business or economic trends. The preceding non-GAAP financial measures should not be considered a substitute for the comparable GAAP financial measures, as they do not fully recognize the overall profitability of the Kemper’s businesses.
10


A reconciliation of Net Income (Loss) to Adjusted Consolidated Net Operating Income (Loss) 1 for the three months ended March 31, 2022 and 2021 is presented below.
Three Months Ended
(Dollars in Millions) (Unaudited)Mar 31,
2022
Mar 31,
2021
Net Income (Loss)$(94.8)$123.2 
Less Net Income (Loss) From:
Change in Fair Value of Equity and Convertible Securities(22.3)41.2 
Net Realized Gains on Sales of Investments1.2 10.9 
Impairment Losses(7.0)(3.2)
Acquisition Related Transaction, Integration and Other Costs(3.7)(12.9)
Debt Extinguishment, Pension and Other Charges(2.9)— 
Adjusted Consolidated Net Operating Income (Loss) 1
$(60.1)$87.2 
Diluted Adjusted Consolidated Net Operating Income (Loss) Per Unrestricted Share1 is a non-GAAP financial measure computed by dividing Adjusted Consolidated Net Operating Income (Loss)1 attributed to unrestricted shares by the weighted-average unrestricted shares and equivalent shares outstanding. The most directly comparable GAAP financial measure is Diluted Net Income (Loss) Per Unrestricted Share.
A reconciliation of Diluted Net Income (Loss) Per Unrestricted Share to Diluted Adjusted Consolidated Net Operating Income (Loss) Per Unrestricted Share1 for the three months ended March 31, 2022 and 2021 is presented below.
 Three Months Ended
(Unaudited)Mar 31,
2022
Mar 31,
2021
Diluted Net Income (Loss) Per Unrestricted Share$(1.49)$1.85 
Less Net Income (Loss) Per Unrestricted Share From:
Change in Fair Value of Equity and Convertible Securities(0.35)0.62 
Net Realized Gains on Sales of Investments0.02 0.16 
Impairment Losses(0.11)(0.05)
Acquisition Related Transaction, Integration and Other Costs(0.06)(0.19)
Debt Extinguishment, Pension and Other Charges(0.05)— 
Diluted Adjusted Consolidated Net Operating Income (Loss) Per Unrestricted Share1
$(0.94)$1.31 
Book Value Per Share Excluding Net Unrealized (Gains) Losses on Fixed Maturities1 is a calculation that uses a non-GAAP financial measure. It is calculated by dividing shareholders’ equity after excluding the after-tax impact of net unrealized (gains) losses on fixed income securities by total Common Shares Issued and Outstanding. Book Value Per Share is the most directly comparable GAAP financial measure. Kemper uses the trends in book value per share, excluding the after-tax impact of net unrealized (gains) losses on fixed income securities, in conjunction with book value per share to identify and analyze the change in net worth attributable to management efforts between periods. Kemper believes the non-GAAP financial measure is useful to investors because it eliminates the effect of items that can fluctuate significantly from period to period and are generally driven by economic developments, primarily capital market conditions, the magnitude and timing of which are not influenced by management. Kemper believes it enhances understanding and comparability of performance by highlighting underlying business activity and profitability drivers.

11


A reconciliation of the numerator used in the computation of Book Value Per Share Excluding Net Unrealized (Gains) Losses on Fixed Maturities1 and Book Value Per Share at March 31, 2022 and December 31, 2021 is presented below.
(Dollars in Millions) (Unaudited)Mar 31,
2022
Dec 31,
2021
Shareholders’ Equity$3,394.5 $4,007.7 
Less: Net Unrealized Gains (Losses) on Fixed Maturities(13.7)502.6 
Shareholders’ Equity Excluding Net Unrealized (Gains) Losses on Fixed Maturities1
$3,408.2 $3,505.1 
Underlying Combined Ratio1 is a non-GAAP financial measure. It is computed by adding the Current Year Non-catastrophe Losses and LAE Ratio with the Insurance Expense Ratio. The most directly comparable GAAP financial measure is the Combined Ratio, which is computed by adding Total Incurred Losses and LAE Ratio, including the impact of catastrophe losses and loss and LAE reserve development from prior years, with the Insurance Expense Ratio.
Kemper believes Underlying Losses and LAE and the Underlying Combined Ratio are useful to investors and uses these financial measures to reveal the trends in Kemper’s Property & Casualty Insurance segment that may be obscured by catastrophe losses and prior-year reserve development. These catastrophe losses may cause the Kemper’s loss trends to vary significantly between periods as a result of their incidence of occurrence and magnitude and can have a significant impact on incurred losses and LAE and the Combined Ratio. Prior-year reserve developments are caused by unexpected loss development on historical reserves. Because reserve development relates to the re-estimation of losses from earlier periods, it has no bearing on the performance of the Kemper’s insurance products in the current period. Kemper believes it is useful for investors to evaluate these components separately and in the aggregate when reviewing the Kemper’s underwriting performance.

12


As Adjusted for Acquisitions1 amounts are non-GAAP financial measures. Subsequent to the applicable acquisitions, the As Adjusted for Acquisitions1 amounts are computed by subtracting the impact of purchase accounting adjustments from the comparable consolidated GAAP financial measure reported by Kemper. Kemper believes computing and presenting results on an adjusted basis are useful to investors and are used by management to provide meaningful and comparable year-over-year comparisons.

A reconciliation of the As Adjusted for Acquisitions1 non-GAAP financial measures used in this press release to the comparable GAAP financial measure for the three months ended March 31, 2022 is presented below.
(Dollars in Millions, Except Per Share Amounts) (Unaudited)
Kemper Consolidated GAAP Financial MeasureLess Impact of Purchase Accounting Adjustments
As Adjusted for Acquisitions1
Net Income (Loss)$(94.8)$(3.5)$(91.3)
Net Income (Loss) Per Share - Diluted$(1.49)$(0.06)$(1.43)
Specialty Property & Casualty Insurance Segment:
Earned Premiums$1,021.6 $— $1,021.6 
Segment Net Operating Income (Loss)$(44.7)$(4.0)$(40.7)
Specialty Personal Automobile Insurance:
Earned Premiums$901.7 $— $901.7 
Segment Net Operating Income (Loss)$(56.4)$(3.6)$(52.8)
A reconciliation of the As Adjusted for Acquisitions1 non-GAAP financial measures used in this press release to the comparable GAAP financial measure for the three months ended March 31, 2021 is presented below.
(Dollars in Millions, Except Per Share Amounts) (Unaudited)
Kemper Consolidated GAAP Financial MeasureAAC Historical GAAP Financial MeasureLess Impact of Purchase Accounting Adjustments
As Adjusted for Acquisitions1
Net Income (Loss)$123.2 $6.1 $(1.8)$131.1 
Net Income (Loss) Per Share - Diluted$1.85 $0.09 $(0.03)$1.97 
Specialty Property & Casualty Insurance Segment:
Earned Premiums$877.6 $87.9 $— $965.5 
Segment Net Operating Income (Loss)$80.1 $12.3 $(2.1)$94.5 
Specialty Personal Automobile Insurance:
Earned Premiums$785.4 $87.9 $— $873.3 
Segment Net Operating Income (Loss)$65.7 $12.3 $(1.7)$79.7 

13


Conference Call
Kemper will host its conference call to discuss first quarter 2022 results on Monday, May 2nd, at 5:00 p.m. Eastern (4:00 p.m. Central). The conference call will be accessible via the internet and by telephone at 844.200.6205, access code 339522. To listen via webcast, register online at the investor section of kemper.com at least 15 minutes prior to the webcast to download and install any necessary software.
A replay of the call will be available online at the investor section of kemper.com.
More detailed financial information can be found in Kemper’s Investor Financial Supplement and Earnings Call Presentation for the first quarter of 2022, which is available at the investor section of kemper.com.
About Kemper
The Kemper family of companies is one of the nation’s leading specialized insurers. With approximately $15 billion in assets, Kemper is improving the world of insurance by providing affordable and easy-to-use personalized solutions to individuals, families and businesses through its Auto, Personal Insurance, Life and Health brands. Kemper serves over 6.4 million policies, is represented by approximately 35,500 agents and brokers, and has approximately 10,400 associates dedicated to meeting the ever-changing needs of its customers.
Learn more about Kemper at kemper.com.

Caution Regarding Forward-Looking Statements

This press release may contain or incorporate by reference information that includes or is based on forward-looking statements within the meaning of the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995. We caution investors that these forward-looking statements are not guarantees of future performance, and actual results may differ materially. Such statements involve known and unknown risks, uncertainties, and other factors, including but not limited to:

changes in the frequency and severity of insurance claims;
claim development and the process of estimating claim reserves;
the impacts of inflation;
supply chain disruption;
product demand and pricing;
effects of governmental and regulatory actions;
litigation outcomes;
investment risks;
cybersecurity risks;
impact of catastrophes; and
other risks and uncertainties detailed in Kemper’s Annual Report on Form 10-K and subsequent filings with the Securities and Exchange Commission (“SEC”).

The COVID-19 outbreak and subsequent global pandemic (“Pandemic”) is an extraordinary catastrophe that creates unique uncertainties and risks. Kemper cannot provide any assurances as to the impacts of the Pandemic and related economic conditions on Kemper’s operating and financial results.

Kemper assumes no obligation to publicly correct or update any forward-looking statements as a result of events or developments subsequent to the date of this press release, including any such statements related to the Pandemic.
###
14



Contacts

Investors: Karen Guerra

312.661.4930 or investors@kemper.com
Media: Barbara Ciesemier
312.661.4521 or bciesemier@kemper.com
15
Exhibit 99.2

kemperlogocolorwebfinala05a.jpg

Investor Supplement
First Quarter 2022
The financial statements and financial exhibits included herein are unaudited. These financial statements and exhibits should be read in conjunction with the Company’s periodic reports on Forms 10-K, 10-Q and 8-K filed with the U.S. Securities and Exchange Commission (the “SEC”). The results of operations for interim periods should not be considered indicative of results to be expected for the full year.
Caution Regarding Forward-Looking Statements

This Investor Supplement may contain or incorporate by reference information that includes or is based on forward-looking statements within the meaning of the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995. We caution investors that these forward-looking statements are not guarantees of future performance, and actual results may differ materially. Such statements involve known and unknown risks, uncertainties, and other factors, including but not limited to:

changes in the frequency and severity of insurance claims;
claim development and the process of estimating claim reserves;
the impacts of inflation;
supply chain disruption;
product demand and pricing;
effects of governmental and regulatory actions;
litigation outcomes;
investment risks;
cybersecurity risks;
impact of catastrophes; and
other risks and uncertainties detailed in Kemper’s Annual Report on Form 10-K and subsequent filings with the Securities and Exchange Commission (“SEC”).

The COVID-19 outbreak and subsequent global pandemic (“Pandemic”) is an extraordinary catastrophe that creates unique uncertainties and risks. Kemper cannot provide any assurances as to the impacts of the Pandemic and related economic conditions on Kemper’s operating and financial results.

Kemper assumes no obligation to publicly correct or update any forward-looking statements as a result of events or developments subsequent to the date of this Investor Supplement, including any such statements related to the Pandemic.




Exhibit 99.2
Non-GAAP Financial Measures
This document contains non-GAAP financial measures to analyze the Company’s operating performance for the periods presented. Because the Company’s calculation of these measures may differ from similar measures used by other companies, investors should be careful when comparing the Company’s non-GAAP financial measures to those of other companies. For detailed disclosures on non-GAAP financial measures please refer to the “Definitions of Non-GAAP Financial Measures” on Pages 34-35.




Kemper Corporation
Investor Supplement
First Quarter 2022
Table of Contents
 
 Page
Consolidated Financial Highlights3
Consolidated Statements of Income4
Consolidated Balance Sheets5
Consolidated Statements of Cash Flows6-7
Capital Metrics8-9
Debt Outstanding, FHLB Advances and Ratings
10
Segment Summary Results:
Revenues11
Operating Income12
Net Operating Income12
Catastrophe Frequency and Severity13
Specialty Property & Casualty Insurance Segment - Results of Operations and Selected Financial Information14-15
Personal Automobile Insurance16
Commercial Automobile Insurance17
Preferred Property & Casualty Insurance Segment - Results of Operations and Selected Financial Information18-19
Personal Automobile Insurance20
Homeowners and Other Personal Insurance21
Homeowners Insurance22
Other Personal Insurance23
Life & Health Insurance Segment - Results of Operations and Selected Financial Information24
Life Insurance25
Accident and Health Insurance25
Property Insurance26
Expenses27
Details of Investment Performance28
Details of Invested Assets29-30
Investment Concentration31
Municipal Bond Securities32
Investments in Limited Liability Companies and Limited Partnerships33
Definitions of Non-GAAP Financial Measures34-35
As Adjusted for Acquisition36-39
 







Kemper Corporation
Consolidated Financial Highlights
(Dollars in Millions, Except Per Share Amounts)
(Unaudited)
 Three Months Ended
Mar 31, 2022Dec 31, 2021Sep 30, 2021Jun 30, 2021Mar 31, 2021
For Period Ended
Earned Premiums
$1,338.6 $1,359.1 $1,356.1 $1,337.7 $1,200.8 
Net Investment Income
100.0 108.4 101.9 113.9 103.1 
Change in Value of Alternative Energy Partnership Investments(16.7)(14.3)(23.8)(7.7)(15.4)
Other Income
2.4 — 1.5 1.8 1.5 
Income (Loss) from Change in Fair Value of Equity and Convertible Securities
(28.2)22.2 (0.6)40.8 52.2 
Net Investment Gains (Loss)
(7.4)18.5 9.5 16.0 9.8 
Total Revenues
$1,388.7 $1,493.9 $1,444.6 $1,502.5 $1,352.0 
Net Income (Loss)$(94.8)$(105.8)$(75.3)$(62.6)$123.2 
Adjusted Consolidated Net Operating Income (Loss) 1
$(60.1)$(130.8)$(75.8)$(99.4)$87.2 
Per Unrestricted Common Share Amounts:
Basic:
Net Income (Loss)$(1.49)$(1.66)$(1.18)$(0.97)$1.88 
Adjusted Consolidated Net Operating Income (Loss) 1
$(0.94)$(2.05)$(1.19)$(1.54)$1.33 
Diluted:
Net Income (Loss)$(1.49)$(1.66)$(1.18)$(0.97)$1.85 
Adjusted Consolidated Net Operating Income (Loss) 1
$(0.94)$(2.05)$(1.19)$(1.54)$1.31 
Dividends Paid to Shareholders Per Share
$0.31 $0.31 $0.31 $0.31 $0.31 
At Period End
Total Assets
$14,614.7 $14,916.5 $14,977.2 $14,950.7 $14,203.7 
Insurance Reserves
$6,316.4 $6,313.6 $6,120.3 $5,982.4 $5,541.1 
Debt
$1,385.2 $1,121.9 $1,122.1 $1,122.3 $1,122.6 
Shareholders’ Equity
$3,394.5 $4,007.7 $4,151.2 $4,306.2 $4,339.1 
Shareholders’ Equity Excluding Goodwill1,2
$2,082.5 $2,695.7 $2,839.2 $2,994.3 $3,225.1 
Common Shares Issued and Outstanding (In Millions)
63.800 63.685 63.652 63.636 65.016 
Book Value Per Share2
$53.21 $62.93 $65.22 $67.67 $66.74 
Book Value Per Share Excluding Goodwill1,2
$32.64 $42.33 $44.61 $47.05 $49.60 
Book Value Per Share Excluding Net Unrealized (Gains) Losses on Fixed Maturities1,2
$53.42 $55.04 $56.94 $58.39 $60.00 
Book Value Per Share Excluding Net Unrealized (Gains) Losses on Fixed Maturities and Goodwill1,2
$32.86 $34.44 $36.33 $37.77 $42.87 
Debt to Total Capitalization2
29.0 %21.9 %21.3 %20.7 %20.6 %
Rolling 12 Months Return on 5-point Average Shareholders Equity2,3
(8.4)%(2.8)%1.9 %6.4 %11.1 %
1 Non-GAAP Financial Measure. See page 34 for definition.
2 See Capital Metrics on pages 8-9 for detail calculations.
3 Rolling 12 Months Return on 5-point Average Shareholders Equity is calculated by taking the last 12 months of Net Income (Loss) divided by the 5-point average Shareholders’ Equity. The 5-point Average Shareholders’ Equity is calculated by using a 5-point quarter average of Shareholders’ Equity for the 12 month period.
3


Kemper Corporation
Consolidated Statements of Income
(Dollars in Millions, Except Per Share Amounts)
(Unaudited)
 Three Months Ended
 Mar 31, 2022Dec 31, 2021Sep 30, 2021Jun 30, 2021Mar 31, 2021
Revenues:
Earned Premiums$1,338.6 $1,359.1 $1,356.1 $1,337.7 $1,200.8 
Net Investment Income100.0 108.4 101.9 113.9 103.1 
Change in Value of Alternative Energy Partnership Investments(16.7)(14.3)(23.8)(7.7)(15.4)
Other Income2.4 — 1.5 1.8 1.5 
Income (Loss) from Change in Fair Value of Equity and Convertible Securities(28.2)22.2 (0.6)40.8 52.2 
Net Realized Gains (Losses) on Sales of Investments1.5 21.7 10.1 19.2 13.8 
Impairment Losses(8.9)(3.2)(0.6)(3.2)(4.0)
Total Revenues1,388.7 1,493.9 1,444.6 1,502.5 1,352.0 
Expenses:
Policyholders’ Benefits and Incurred Losses and Loss Adjustment Expenses1,153.4 1,276.0 1,211.2 1,224.1 889.5 
Insurance Expenses304.0 309.1 311.3 314.0 283.7 
Loss from Early Extinguishment of Debt3.7 — — — — 
Interest and Other Expenses54.1 56.2 51.9 54.1 57.2 
Total Expenses1,515.2 1,641.3 1,574.4 1,592.2 1,230.4 
Income (Loss) before Income Taxes(126.5)(147.4)(129.8)(89.7)121.6 
Income Tax Benefit (Expense)31.7 41.6 54.5 27.1 1.6 
Net Income (Loss)$(94.8)$(105.8)$(75.3)$(62.6)$123.2 
Income (Loss) Per Unrestricted Share:
Basic$(1.49)$(1.66)$(1.18)$(0.97)$1.88 
Diluted$(1.49)$(1.66)$(1.18)$(0.97)$1.85 
Net Income (Loss) Per Unrestricted Share:
Basic$(1.49)$(1.66)$(1.18)$(0.97)$1.88 
Diluted$(1.49)$(1.66)$(1.18)$(0.97)$1.85 
Dividends Paid to Shareholders Per Share$0.31 $0.31 $0.31 $0.31 $0.31 
Weighted Average Unrestricted Common Shares Outstanding (in Millions)63.744 63.655 63.628 64.377 65.425 
 
4


Kemper Corporation
Consolidated Balance Sheets
(Dollars in Millions)
(Unaudited)
Mar 31, 2022Dec 31, 2021Sep 30, 2021Jun 30, 2021Mar 31, 2021
Assets:
Investments:
Fixed Maturities at Fair Value$7,783.9 $7,986.9 $7,885.1 $7,835.0 $7,479.4 
Equity Securities at Fair Value571.5 830.6 969.6 957.7 897.4 
Equity Securities at Modified Cost35.2 32.3 33.0 32.5 36.0 
Equity Method Limited Liability Investments230.0 241.9 255.1 245.5 219.2 
Alternative Energy Partnerships22.4 39.6 54.2 46.6 54.4 
Convertible Securities at Fair Value46.1 46.4 44.1 43.6 42.6 
Short-term Investments at Cost which Approximates Fair Value243.8 284.1 259.7 370.6 196.9 
Other Investments1,035.2 925.6 921.5 910.8 896.8 
Total Investments9,968.1 10,387.4 10,422.3 10,442.3 9,822.7 
Cash297.3 148.2 119.8 105.1 547.4 
Receivables from Policyholders1,404.5 1,418.7 1,481.2 1,479.9 1,260.9 
Other Receivables203.4 207.3 207.3 214.9 225.4 
Deferred Policy Acquisition Costs680.0 677.6 676.6 652.7 611.7 
Goodwill1,312.0 1,312.0 1,312.0 1,311.9 1,114.0 
Current Income Tax Assets183.0 173.1 138.7 94.2 65.6 
Other Assets566.4 592.2 619.3 649.7 556.0 
Total Assets$14,614.7 $14,916.5 $14,977.2 $14,950.7 $14,203.7 
Liabilities and Shareholders’ Equity:
Insurance Reserves:
Life and Health$3,556.3 $3,540.9 $3,524.1 $3,551.6 $3,541.6 
Property and Casualty2,760.1 2,772.7 2,596.2 2,430.8 1,999.5 
Total Insurance Reserves6,316.4 6,313.6 6,120.3 5,982.4 5,541.1 
Unearned Premiums1,890.5 1,898.7 1,965.7 1,968.1 1,713.0 
Policyholder Contract Liabilities655.0 504.0 481.8 442.7 466.5 
Deferred Income Tax Liabilities69.6 227.0 242.4 269.6 227.6 
Accrued Expenses and Other Liabilities903.5 843.6 893.7 859.4 793.8 
Long-term Debt, Current and Non-current, at Amortized Cost1,385.2 1,121.9 1,122.1 1,122.3 1,122.6 
Total Liabilities11,220.2 10,908.8 10,826.0 10,644.5 9,864.6 
Shareholders’ Equity:
Common Stock6.4 6.4 6.4 6.4 6.5 
Paid-in Capital1,803.1 1,790.7 1,777.0 1,770.9 1,802.1 
Retained Earnings1,647.3 1,762.5 1,888.4 1,985.9 2,140.0 
Accumulated Other Comprehensive Income (Loss)(62.3)448.1 479.4 543.0 390.5 
Total Shareholders’ Equity3,394.5 4,007.7 4,151.2 4,306.2 4,339.1 
Total Liabilities and Shareholders’ Equity$14,614.7 $14,916.5 $14,977.2 $14,950.7 $14,203.7 
5


Kemper Corporation
Consolidated Statements of Cash Flows
(Dollars in Millions)
 (Unaudited)
 Three Months Ended
 Mar 31,
2022
Mar 31,
2021
Cash Flows from Operating Activities:
Net Income (Loss)$(94.8)$123.2 
Adjustments to Reconcile Net Income (Loss) to Net Cash Provided by (Used in) Operating Activities:
Net Realized Investment (Gains) Losses(1.5)(13.8)
Impairment Losses8.9 4.0 
Depreciation and Amortization of Property, Equipment and Software13.4 11.1 
Amortization of Intangibles Assets Acquired6.2 3.2 
Loss from Early Extinguishment of Debt3.7 — 
Change in Accumulated Undistributed Earnings of Equity Method Limited Liability Investments(5.8)(18.1)
(Income) Loss from Change in Value of Alternative Energy Partnership Investments16.7 15.4 
(Increase) Decrease in Value of Equity and Convertible Securities28.2 (52.2)
Changes in:
Receivables from Policyholders14.2 (66.7)
Reinsurance Recoverables(0.3)5.0 
Deferred Policy Acquisition Costs(2.4)(21.3)
Insurance Reserves2.9 29.8 
Unearned Premiums(8.2)97.9 
Income Taxes(30.5)(37.3)
Other Assets and Liabilities31.1 60.4 
Net Cash Provided by (Used in) Operating Activities(18.2)140.6 
6


Kemper Corporation
Consolidated Statements of Cash Flows
(Dollars in Millions)
 (Unaudited)
 Three Months Ended
 Mar 31,
2022
Mar 31,
2021
Net Cash Provided by Operating Activities (Carryforward from page 6)$(18.2)$140.6 
Cash Flows from Investing Activities:
Proceeds from Sales, Calls, and Maturities of Fixed Maturities128.6 291.2 
Proceeds from the Sales of Investments:
Equity Securities249.7 27.3 
Mortgage Loans22.8 12.8 
Other Investments20.5 7.0 
Purchases of Investments:
Fixed Maturities(527.2)(503.2)
Equity Securities(21.3)(12.5)
Real Estate Investments— (0.2)
Corporate-Owned Life Insurance(100.0)(100.0)
Mortgage Loans(21.3)(33.7)
Other Investments(1.9)(50.1)
Net Sales (Purchases) of Short-term Investments40.3 677.4 
Acquisition of Software and Long-lived Assets(16.0)(9.2)
Other0.7 4.9 
Net Cash Provided by (Used In) Investing Activities(225.1)311.7 
Cash Flows from Financing Activities:
Repayment of Long-Term Debt(280.0)(50.0)
Proceeds from Issuance of 3.800% Senior Notes due February 23, 2032
396.3 — 
Issuance Fees on 3.800% Senior Notes due February 23, 2032
(1.2)— 
Proceeds from Issuance of 5.875% Fixed-Rate Reset Junior Subordinated Debentures Due 2062
145.6 — 
Issuance Fees on 5.875% Fixed-Rate Reset Junior Subordinated Debentures Due 2062
(0.9)— 
Proceeds from Policyholder Contract Obligations208.6 60.7 
Repayment of Policyholder Contract Obligations(57.8)(61.5)
Proceeds from Shares Issued under Employee Stock Purchase Plan1.3 1.2 
Common Stock Repurchases— (42.1)
Dividends and Dividend Equivalents Paid(19.8)(21.0)
Other0.3 1.7 
Net Cash Provided by (Used In) Financing Activities392.4 (111.0)
Increase (Decrease) in Cash149.1 341.3 
Cash, Beginning of Year148.2 206.1 
Cash, End of Period$297.3 $547.4 
7



Kemper Corporation
Capital Metrics
(Dollars and Shares in Millions, Except Per Share Amounts)
(Unaudited)
 Mar 31, 2022Dec 31, 2021Sep 30, 2021Jun 30, 2021Mar 31, 2021
Book Value Per Share  
Numerator
Shareholders’ Equity$3,394.5 $4,007.7 $4,151.2 $4,306.2 $4,339.1 
Less: Goodwill(1,312.0)(1,312.0)(1,312.0)(1,311.9)(1,114.0)
Shareholders’ Equity Excluding Goodwill1
$2,082.5 $2,695.7 $2,839.2 $2,994.3 $3,225.1 
Shareholders’ Equity$3,394.5 $4,007.7 $4,151.2 $4,306.2 $4,339.1 
Less: Net Unrealized (Gains) Losses on Fixed Maturities13.7 (502.6)(526.9)(590.5)(438.0)
Shareholders’ Equity Excluding Net Unrealized (Gains) Losses on Fixed Maturities1
$3,408.2 $3,505.1 $3,624.3 $3,715.7 $3,901.1 
Less: Goodwill(1,312.0)(1,312.0)(1,312.0)(1,311.9)(1,114.0)
Shareholders’ Equity Excluding Net Unrealized (Gains) Losses on Fixed Maturities and Goodwill1
$2,096.2 $2,193.1 $2,312.3 $2,403.8 $2,787.1 
Denominator
Common Shares Issued and Outstanding63.800 63.685 63.652 63.636 65.016 
Book Value Per Share$53.21 $62.93 $65.22 $67.67 $66.74 
Book Value Per Share Excluding Goodwill1
$32.64 $42.33 $44.61 $47.05 $49.60 
Book Value Per Share Excluding Net Unrealized (Gains) Losses on Fixed Maturities1
$53.42 $55.04 $56.94 $58.39 $60.00 
Book Value Per Share Excluding Net Unrealized (Gains) Losses on Fixed Maturities and Goodwill1
$32.86 $34.44 $36.33 $37.77 $42.87 
Return on Shareholders’ Equity
Numerator
Rolling 12 Months Net Income$(338.5)$(120.5)$82.8 $280.4 $469.1 
Denominator (5-point Average)
5-point Average Shareholders’ Equity$4,039.7 $4,273.5 $4,341.5 $4,348.8 $4,239.7 
Rolling 12 Months Return on Average Shareholders' Equity (5-point Average)(8.4)%(2.8)%1.9 %6.4 %11.1 %
Return on Shareholders’ Equity Excluding Goodwill1
Denominator (5-point Average)
5-point Average Shareholders’ Equity Excluding Goodwill1
$2,767.4 $3,040.7 $3,148.3 $3,195.2 $3,125.7 
Rolling 12 Months Return on Average Shareholders' Equity Excluding Goodwill (5-point Average)1
(12.2)%(4.0)%2.6 %8.8 %15.0 %
Return on Shareholders’ Equity Excluding Net Unrealized (Gains) Losses on Fixed Maturities1
Denominator (5-point Average)
5-point Average Shareholders’ Equity Excluding Net Unrealized (Gains) Losses on Fixed Maturities1
$3,630.9 $3,717.1 $3,756.8 $3,751.8 $3,708.5 
 Rolling 12 Months Return on Average Shareholders' Equity Excluding Net Unrealized (Gains) Losses on Fixed Maturities (5-point Average)1
(9.3)%(3.2)%2.2 %7.5 %12.6 %
Return on Shareholders’ Equity Excluding Net Unrealized (Gains) Losses on Fixed Maturities and Goodwill1
Denominator (5-point Average)
5-point Average Shareholders’ Equity Excluding Net Unrealized (Gains) Losses on Fixed Maturities and Goodwill1
$2,358.5 $2,484.3 $2,563.7 $2,598.3 $2,594.5 
 Rolling 12 Months Return on Average Shareholders' Equity Excluding Net Unrealized (Gains) Losses on Fixed Maturities and Goodwill (5-point Average)1
(14.4)%(4.9)%3.2 %10.8 %18.1 %
1 Non-GAAP financial measure. See definitions beginning on page 34.
8



Kemper Corporation
Capital Metrics
(Dollars and Shares in Millions, Except Per Share Amounts)
(Unaudited)
 Mar 31, 2022Dec 31, 2021Sep 30, 2021Jun 30, 2021Mar 31, 2021
Debt and Total Capitalization
Debt$1,385.2 $1,121.9 $1,122.1 $1,122.3 $1,122.6 
Shareholders’ Equity3,394.5 4,007.7 4,151.2 4,306.2 4,339.1 
Total Capitalization$4,779.7 $5,129.6 $5,273.3 $5,428.5 $5,461.7 
Ratio of Debt to Shareholders’ Equity40.8 %28.0 %27.0 %26.1 %25.9 %
Ratio of Debt to Total Capitalization29.0 %21.9 %21.3 %20.7 %20.6 %
Parent Company Liquidity
Kemper Holding Company Cash and Investments1
$318.3 $233.9 $330.6 $214.8 $607.1 
Borrowings Available Under Credit Agreement600.0 400.0 400.0 400.0 400.0 
Parent Company Liquidity$918.3 $633.9 $730.6 $614.8 $1,007.1 
Capital Returned to Shareholders
Cash Dividends Paid 2
$19.6 $19.9 $19.7 $20.4 $21.0 
1 Includes Kemper's direct non-insurance subsidiaries
2 Three Months Ended
 
9



Kemper Corporation
Debt Outstanding, FHLB Advances and Ratings
(Dollars in Millions)
(Unaudited)
Mar 31, 2022Dec 31, 2021Sep 30, 2021Jun 30, 2021Mar 31, 2021
Kemper Corporation:
Senior Notes at Amortized Cost:
5.000% Senior Notes due September 19, 2022— 276.7 277.1 277.6 277.9 
4.350% Senior Notes due February 15, 2025449.1 449.0 448.9 448.8 448.9 
2.400% Senior Notes due September 30, 2030396.3 396.2 396.1 395.9 395.8 
3.800% Subordinated Debentures due 2032395.1 — — — — 
5.875% Fixed-Rate Reset Junior Subordinated Debentures Due 2062 at Amortized Cost144.7 — — — — 
Long-term Debt Outstanding$1,385.2 $1,121.9 $1,122.1 $1,122.3 $1,122.6 
Federal Home Loan Bank Advances to Insurance Subsidiaries:
Reported as Policyholder Contract Liabilities:
Federal Home Loan Bank of Chicago$553.1 $401.9 $378.9