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

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May 3, 2022 6:07 AM EDT

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Exhibit 99.1


			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.

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 Insurance	3.1		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 Investments	1.2		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.

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.

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 Revenues	1,388.7		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 Debt	3.7		—
Interest and Other Expenses	54.1		57.2
Total Expenses	1,515.2		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 - Basic	63,743.7		65,424.6
Unrestricted Shares and Equivalent Shares - Diluted	63,743.7		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.

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 Automobile		119.9		92.2
Total Earned Premiums		1,021.6		877.6
Net Investment Income		34.9		35.0
Change in Value of Alternative Energy Partnership Investments		(8.4)		(7.3)
Other Income		1.7		0.9
Total Specialty Property & Casualty Insurance Revenues		1,049.8		906.2
Preferred Property & Casualty Insurance:
Earned Premiums:
Personal Automobile		96.0		103.0
Homeowners		51.3		50.8
Other Personal		8.3		8.4
Total Earned Premiums		155.6		162.2
Net Investment Income		12.5		15.9
Change in Value of Alternative Energy Partnership Investments		(3.9)		(4.1)
Other Income		—		—
Total Preferred Property & Casualty Insurance Revenues		164.2		174.0
Life & Health Insurance:
Earned Premiums:
Life		101.3		98.1
Accident & Health		45.8		47.4
Property		14.3		15.5
Total Earned Premiums		161.4		161.0
Net Investment Income		49.4		51.1
Change in Value of Alternative Energy Partnership Investments		(4.4)		(4.0)
Other Income		—		0.1
Total Life & Health Insurance Revenues		206.4		208.2
Total Segment Revenues		1,420.4		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 Investments		1.5		13.8
Impairment Losses		(8.9)		(4.0)
Other		3.9		1.6
Total Revenues		$	1,388.7	$	1,352.0

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 Investments	22.4		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

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 Income		34.9			35.0
Change in Value of Alternative Energy Partnership Investments		(8.4)			(7.3)
Other Income		1.7			0.9
Total Revenues		1,049.8			906.2
Incurred Losses and LAE related to:
Current Year:
Non-catastrophe Losses and LAE		911.7			650.0
Catastrophe Losses and LAE		2.1			1.7
Prior Years:
Non-catastrophe Losses and LAE		(3.8)			(1.4)
Catastrophe Losses and LAE		0.7			0.4
Total Incurred Losses and LAE		910.7			650.7
Insurance Expenses		199.3			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 Ratio		89.2		%	74.1		%
Current Year Catastrophe Losses and LAE Ratio		0.2			0.2
Prior Years Non-catastrophe Losses and LAE Ratio		(0.4)			(0.2)
Prior Years Catastrophe Losses and LAE Ratio		0.1			—
Total Incurred Loss and LAE Ratio		89.1			74.1
Insurance Expense Ratio		19.5			19.4
Combined Ratio		108.6		%	93.5		%

Underlying Combined Ratio1
Current Year Non-catastrophe Losses and LAE Ratio		89.2		%	74.1		%
Insurance Expense Ratio		19.5			19.4
Underlying Combined Ratio1		108.7		%	93.5		%

Non-GAAP Measure Reconciliation
Combined Ratio		108.6		%	93.5		%
Less:
Current Year Catastrophe Losses and LAE Ratio		0.2			0.2
Prior Years Non-catastrophe Losses and LAE Ratio		(0.4)			(0.2)
Prior Years Catastrophe Losses and LAE Ratio		0.1			—
Underlying Combined Ratio1		108.7		%	93.5		%

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 Income		12.5			15.9
Change in Value of Alternative Energy Partnership Investments		(3.9)			(4.1)
Other Income		—			—
Total Revenues		164.2			174.0
Incurred Losses and LAE related to:
Current Year:
Non-catastrophe Losses and LAE		112.2			96.2
Catastrophe Losses and LAE		11.4			24.0
Prior Years:
Non-catastrophe Losses and LAE		2.1			0.1
Catastrophe Losses and LAE		(3.2)			(0.3)
Total Incurred Losses and LAE		122.5			120.0
Insurance Expenses		51.2			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 Ratio		72.2		%	59.3		%
Current Year Catastrophe Losses and LAE Ratio		7.3			14.8
Prior Years Non-catastrophe Losses and LAE Ratio		1.3			0.1
Prior Years Catastrophe Losses and LAE Ratio		(2.1)			(0.2)
Total Incurred Loss and LAE Ratio		78.7			74.0
Insurance Expense Ratio		32.9			31.4

Combined Ratio		111.6		%	105.4		%

Underlying Combined Ratio1
Current Year Non-catastrophe Losses and LAE Ratio		72.2		%	59.3		%
Insurance Expense Ratio		32.9			31.4

Underlying Combined Ratio1		105.1		%	90.7		%

Non-GAAP Measure Reconciliation
Combined Ratio		111.6		%	105.4		%
Less:
Current Year Catastrophe Losses and LAE Ratio		7.3			14.8
Prior Years Non-catastrophe Losses and LAE Ratio		1.3			0.1
Prior Years Catastrophe Losses and LAE Ratio		(2.1)			(0.2)
Underlying Combined Ratio1		105.1		%	90.7		%

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 Income		49.4		51.1
Change in Value of Alternative Energy Partnership Investments		(4.4)		(4.0)
Other Income (Loss)		—		0.1
Total Revenues		206.4		208.2
Policyholders’ Benefits and Incurred Losses and LAE		120.1		118.7
Insurance Expenses		85.1		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.

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 Investments		1.2		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 Investments		0.02		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.

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.

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 Measure		Less 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)



(Dollars in Millions, Except Per Share Amounts) (Unaudited)	Kemper Consolidated GAAP Financial Measure		AAC Historical GAAP Financial Measure		Less 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

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.

###


Contacts
Investors: Karen Guerra			312.661.4930 or investors@kemper.com
Media: Barbara Ciesemier			312.661.4521 or bciesemier@kemper.com

Exhibit 99.2

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”).

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 Highlights			3
Consolidated Statements of Income			4
Consolidated Balance Sheets			5
Consolidated Statements of Cash Flows			6-7
Capital Metrics			8-9
Debt Outstanding, FHLB Advances and Ratings			10
Segment Summary Results:
Revenues			11
Operating Income			12
Net Operating Income			12
Catastrophe Frequency and Severity			13
Specialty Property & Casualty Insurance Segment - Results of Operations and Selected Financial Information			14-15
Personal Automobile Insurance			16
Commercial Automobile Insurance			17
Preferred Property & Casualty Insurance Segment - Results of Operations and Selected Financial Information			18-19
Personal Automobile Insurance			20
Homeowners and Other Personal Insurance			21
Homeowners Insurance			22
Other Personal Insurance			23
Life & Health Insurance Segment - Results of Operations and Selected Financial Information			24
Life Insurance			25
Accident and Health Insurance			25
Property Insurance			26
Expenses			27
Details of Investment Performance			28
Details of Invested Assets			29-30
Investment Concentration			31
Municipal Bond Securities			32
Investments in Limited Liability Companies and Limited Partnerships			33
Definitions of Non-GAAP Financial Measures			34-35
As Adjusted for Acquisition			36-39

Kemper Corporation

Consolidated Financial Highlights

(Dollars in Millions, Except Per Share Amounts)

(Unaudited)


	Three Months Ended
		Mar 31, 2022			Dec 31, 2021			Sep 30, 2021			Jun 30, 2021			Mar 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.

Kemper Corporation

Consolidated Statements of Income

(Dollars in Millions, Except Per Share Amounts)

(Unaudited)


	Three Months Ended
	Mar 31, 2022		Dec 31, 2021		Sep 30, 2021		Jun 30, 2021		Mar 31, 2021
Revenues:
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 Realized Gains (Losses) on Sales of Investments	1.5		21.7		10.1		19.2		13.8



Impairment Losses	(8.9)		(3.2)		(0.6)		(3.2)		(4.0)
Total Revenues	1,388.7		1,493.9		1,444.6		1,502.5		1,352.0
Expenses:
Policyholders’ Benefits and Incurred Losses and Loss Adjustment Expenses	1,153.4		1,276.0		1,211.2		1,224.1		889.5
Insurance Expenses	304.0		309.1		311.3		314.0		283.7
Loss from Early Extinguishment of Debt	3.7		—		—		—		—
Interest and Other Expenses	54.1		56.2		51.9		54.1		57.2
Total Expenses	1,515.2		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

Kemper Corporation

Consolidated Balance Sheets

(Dollars in Millions)

(Unaudited)


	Mar 31, 2022		Dec 31, 2021		Sep 30, 2021		Jun 30, 2021		Mar 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 Value	571.5		830.6		969.6		957.7		897.4
Equity Securities at Modified Cost	35.2		32.3		33.0		32.5		36.0
Equity Method Limited Liability Investments	230.0		241.9		255.1		245.5		219.2
Alternative Energy Partnerships	22.4		39.6		54.2		46.6		54.4
Convertible Securities at Fair Value	46.1		46.4		44.1		43.6		42.6
Short-term Investments at Cost which Approximates Fair Value	243.8		284.1		259.7		370.6		196.9
Other Investments	1,035.2		925.6		921.5		910.8		896.8
Total Investments	9,968.1		10,387.4		10,422.3		10,442.3		9,822.7
Cash	297.3		148.2		119.8		105.1		547.4
Receivables from Policyholders	1,404.5		1,418.7		1,481.2		1,479.9		1,260.9
Other Receivables	203.4		207.3		207.3		214.9		225.4
Deferred Policy Acquisition Costs	680.0		677.6		676.6		652.7		611.7
Goodwill	1,312.0		1,312.0		1,312.0		1,311.9		1,114.0
Current Income Tax Assets	183.0		173.1		138.7		94.2		65.6
Other Assets	566.4		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 Casualty	2,760.1		2,772.7		2,596.2		2,430.8		1,999.5
Total Insurance Reserves	6,316.4		6,313.6		6,120.3		5,982.4		5,541.1
Unearned Premiums	1,890.5		1,898.7		1,965.7		1,968.1		1,713.0
Policyholder Contract Liabilities	655.0		504.0		481.8		442.7		466.5
Deferred Income Tax Liabilities	69.6		227.0		242.4		269.6		227.6
Accrued Expenses and Other Liabilities	903.5		843.6		893.7		859.4		793.8
Long-term Debt, Current and Non-current, at Amortized Cost	1,385.2		1,121.9		1,122.1		1,122.3		1,122.6
Total Liabilities	11,220.2		10,908.8		10,826.0		10,644.5		9,864.6
Shareholders’ Equity:
Common Stock	6.4		6.4		6.4		6.4		6.5
Paid-in Capital	1,803.1		1,790.7		1,777.0		1,770.9		1,802.1
Retained Earnings	1,647.3		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’ Equity	3,394.5		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


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 Losses	8.9		4.0
Depreciation and Amortization of Property, Equipment and Software	13.4		11.1
Amortization of Intangibles Assets Acquired	6.2		3.2


Loss from Early Extinguishment of Debt	3.7		—
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 Investments	16.7		15.4
(Increase) Decrease in Value of Equity and Convertible Securities	28.2		(52.2)
Changes in:
Receivables from Policyholders	14.2		(66.7)
Reinsurance Recoverables	(0.3)		5.0
Deferred Policy Acquisition Costs	(2.4)		(21.3)
Insurance Reserves	2.9		29.8
Unearned Premiums	(8.2)		97.9
Income Taxes	(30.5)		(37.3)
Other Assets and Liabilities	31.1		60.4
Net Cash Provided by (Used in) Operating Activities	(18.2)		140.6


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 Maturities	128.6		291.2
Proceeds from the Sales of Investments:
Equity Securities	249.7		27.3

Mortgage Loans	22.8		12.8
Other Investments	20.5		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 Investments	40.3		677.4

Acquisition of Software and Long-lived Assets	(16.0)		(9.2)
Other	0.7		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 Obligations	208.6		60.7
Repayment of Policyholder Contract Obligations	(57.8)		(61.5)
Proceeds from Shares Issued under Employee Stock Purchase Plan	1.3		1.2
Common Stock Repurchases	—		(42.1)
Dividends and Dividend Equivalents Paid	(19.8)		(21.0)
Other	0.3		1.7
Net Cash Provided by (Used In) Financing Activities	392.4		(111.0)
Increase (Decrease) in Cash	149.1		341.3
Cash, Beginning of Year	148.2		206.1
Cash, End of Period	$	297.3	$	547.4


Kemper Corporation Capital Metrics (Dollars and Shares in Millions, Except Per Share Amounts) (Unaudited)
	Mar 31, 2022			Dec 31, 2021			Sep 30, 2021			Jun 30, 2021			Mar 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 Maturities	13.7			(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 Outstanding	63.800			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.


Kemper Corporation Capital Metrics (Dollars and Shares in Millions, Except Per Share Amounts) (Unaudited)
	Mar 31, 2022			Dec 31, 2021			Sep 30, 2021			Jun 30, 2021			Mar 31, 2021
Debt and Total Capitalization
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
Total Capitalization	$	4,779.7		$	5,129.6		$	5,273.3		$	5,428.5		$	5,461.7
Ratio of Debt to Shareholders’ Equity	40.8		%	28.0		%	27.0		%	26.1		%	25.9		%
Ratio of Debt to Total Capitalization	29.0		%	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 Agreement	600.0			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

Kemper Corporation

Debt Outstanding, FHLB Advances and Ratings

(Dollars in Millions)

(Unaudited)


	Mar 31, 2022		Dec 31, 2021		Sep 30, 2021		Jun 30, 2021		Mar 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, 2025	449.1		449.0		448.9		448.8		448.9
2.400% Senior Notes due September 30, 2030	396.3		396.2		396.1		395.9		395.8
3.800% Subordinated Debentures due 2032	395.1		—		—		—		—
5.875% Fixed-Rate Reset Junior Subordinated Debentures Due 2062 at Amortized Cost	144.7		—		—		—		—
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	$	382.8	$	407.5
Reported as Debt Outstanding:
Federal Home Loan Bank of Dallas	$	—	$	—	$	—	$	—	$	—
Federal Home Loan Bank of Chicago	$	—	$	—	$	—	$	—	$	—
Federal Home Loan Bank of San Francisco	$	—	$	—	$	—	$	—	$	—


	A.M. Best		Moody’s		S&P		Fitch
As of Date of Financial Supplement
Kemper Debt Ratings:
Senior Unsecured Debt	BBB		Baa3		BBB		BBB
Junior Unsecured Debt	BB+		Ba1		BB+		BB+
Insurance Company Financial Strength Ratings:
Trinity Universal Insurance Company	A		A3		A		A
United Insurance Company of America	A		A3		A-		A-

NR - Not Rated

Kemper Corporation

Segment Revenues

(Dollars in Millions)

(Unaudited)


	Three Months Ended
	Mar 31, 2022		Dec 31, 2021		Sep 30, 2021		Jun 30, 2021		Mar 31, 2021
Revenues:
Specialty Property & Casualty Insurance:
Earned Premiums:
Personal Automobile	$	901.7	$	918.1	$	920.6	$	909.6	$	785.4
Commercial Automobile	119.9		114.2		107.7		100.7		92.2
Total Specialty Property & Casualty Insurance Earned Premiums	1,021.6		1,032.3		1,028.3		1,010.3		877.6
Net Investment Income	34.9		37.8		37.0		42.7		35.0
Change in Value of Alternative Energy Partnership Investments	(8.4)		(6.7)		(11.3)		(3.7)		(7.3)
Other Income	1.7		1.0		1.2		1.0		0.9
Total Specialty Property & Casualty Insurance Revenues	1,049.8		1,064.4		1,055.2		1,050.3		906.2
Preferred Property & Casualty Insurance:
Earned Premiums:
Personal Automobile	96.0		101.4		102.6		103.5		103.0
Homeowners	51.3		52.7		52.5		51.3		50.8
Other Personal	8.3		8.5		8.6		8.4		8.4
Total Preferred Property & Casualty Insurance Earned Premiums	155.6		162.6		163.7		163.2		162.2
Net Investment Income	12.5		17.1		16.1		19.5		15.9
Change in Value of Alternative Energy Partnership Investments	(3.9)		(3.8)		(6.4)		(2.0)		(4.1)

Total Preferred Property & Casualty Insurance Revenues	164.2		175.9		173.4		180.7		174.0
Life & Health Insurance:
Earned Premiums:
Life	101.3		101.5		101.5		100.6		98.1
Accident and Health	45.8		47.6		47.0		47.9		47.4
Property	14.3		15.1		15.6		15.7		15.5
Total Life & Health Insurance Earned Premiums	161.4		164.2		164.1		164.2		161.0
Net Investment Income	49.4		50.8		48.4		52.4		51.1
Change in Value of Alternative Energy Partnership Investments	(4.4)		(3.7)		(6.1)		(2.0)		(4.0)
Other Income	—		(1.6)		0.1		0.1		0.1
Total Life & Health Insurance Revenues	206.4		209.7		206.5		214.7		208.2
Total Segment Revenues	1,420.4		1,450.0		1,435.1		1,445.7		1,288.4
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 Investments	1.5		21.7		10.1		19.2		13.8
Impairment Losses	(8.9)		(3.2)		(0.6)		(3.2)		(4.0)
Other	3.9		3.2		0.6		—		1.6
Total Revenues	$	1,388.7	$	1,493.9	$	1,444.6	$	1,502.5	$	1,352.0

Kemper Corporation

Segment Operating Results

(Dollars in Millions)

(Unaudited)


	Three Months Ended
	Mar 31, 2022		Dec 31, 2021		Sep 30, 2021		Jun 30, 2021		Mar 31, 2021
Segment Operating Income (Loss):
Specialty Property & Casualty Insurance	$	(60.2)	$	(163.4)	$	(91.8)	$	(122.1)	$	85.2
Preferred Property & Casualty Insurance	(9.5)		(12.0)		(17.4)		(13.4)		3.0
Life & Health Insurance	1.2		4.0		(5.9)		13.2		(0.8)
Total Segment Operating Income (Loss)	(68.5)		(171.4)		(115.1)		(122.3)		87.4

Other	(14.0)		(7.6)		(15.5)		(13.8)		(11.5)
Corporate and Other Operating Income (Loss)	(14.0)		(7.6)		(15.5)		(13.8)		(11.5)
Total Operating Income (Loss)	(82.5)		(179.0)		(130.6)		(136.1)		75.9
Income 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 Investments	1.5		21.7		10.1		19.2		13.8
Impairment Losses	(8.9)		(3.2)		(0.6)		(3.2)		(4.0)
Acquisition Related Transaction, Integration and Other Costs	(4.7)		(9.1)		(8.1)		(10.4)		(16.3)
Loss from Early Extinguishment of Debt	(3.7)		—		—		—		—
Income (Loss) before Income Taxes	$	(126.5)	$	(147.4)	$	(129.8)	$	(89.7)	$	121.6
Segment Net Operating Income (Loss):
Specialty Property & Casualty Insurance	$	(44.7)	$	(125.2)	$	(59.3)	$	(91.7)	$	80.1
Preferred Property & Casualty Insurance	(6.1)		(7.4)		(6.4)		(8.3)		9.6
Life & Health Insurance	3.1		5.1		2.8		13.0		7.3
Total Segment Net Operating Income (Loss)	(47.7)		(127.5)		(62.9)		(87.0)		97.0
Corporate and Other Net Operating Income (Loss) From:


Other	(12.4)		(3.3)		(12.9)		(12.4)		(9.8)
Corporate and Other Net Operating Income (Loss)	(12.4)		(3.3)		(12.9)		(12.4)		(9.8)
Adjusted Consolidated Net Operating Income (Loss)	(60.1)		(130.8)		(75.8)		(99.4)		87.2
Net Income (Loss) From:
Change in Fair Value of Equity and Convertible Securities	(22.3)		17.5		(0.5)		32.3		41.2
Net Realized Gains (Losses) on Sales of Investments	1.2		17.2		7.9		15.2		10.9
Impairment Losses	(7.0)		(2.5)		(0.5)		(2.5)		(3.2)
Acquisition Related Transaction, Integration and Other Costs	(3.7)		(7.2)		(6.4)		(8.2)		(12.9)
Loss from Early Extinguishment of Debt	(2.9)		—		—		—		—
Net Income (Loss)	$	(94.8)	$	(105.8)	$	(75.3)	$	(62.6)	$	123.2

Kemper Corporation

Catastrophe Frequency and Severity

(Dollars in Millions)

(Unaudited)


	Three Months Ended March 31, 2022
	Specialty Property & Casualty Insurance Segment			Preferred Property & Casualty Insurance Segment			Life & Health Insurance Segment			Consolidated
	Number of Events	Losses and LAE		Number of Events	Losses and LAE		Number of Events	Losses and LAE		Number of Events	Losses and LAE
Range of Losses and LAE Per Event1:
Below $5	11	$	2.1	11	$	11.4	10	$	0.4	11	$	13.9
$5 - $10	—	—		—	—		—	—		—	—
$10 - $15	—	—		—	—		—	—		—	—
$15 - $20	—	—		—	—		—	—		—	—
$20 - $25	—	—		—	—		—	—		—	—
Greater Than $25	—	—		—	—		—	—		—	—
Total	11	$	2.1	11	$	11.4	10	$	0.4	11	$	13.9


	Three Months Ended March 31, 2021
	Specialty Property & Casualty Insurance Segment			Preferred Property & Casualty Insurance Segment			Life & Health Insurance Segment			Consolidated
	Number of Events	Losses and LAE		Number of Events	Losses and LAE		Number of Events	Losses and LAE		Number of Events	Losses and LAE
Range of Losses and LAE Per Event1:
Below $5	9	$	1.7	11	$	8.9	8	$	1.9	12	$	11.4
$5 - $10	—	—		—	—		—	—		—	—
$10 - $15	—	—		—	—		—	—		—	—
$15 - $20	—	—		1	15.1		—	—		1	16.2
$20 - $25	—	—		—	—		—	—		—	—
Greater Than $25	—	—		—	—		—	—		—	—
Total	9	$	1.7	12	$	24.0	8	$	1.9	13	$	27.6


1 Current accident year net incurred catastrophe Losses and LAE only

Kemper Corporation

Specialty Property & Casualty Insurance Segment

Results of Operations and Selected Financial Information

(Dollars in Millions)

(Unaudited)


	Three Months Ended
	Mar 31, 2022			Dec 31, 2021			Sep 30, 2021			Jun 30, 2021			Mar 31, 2021
Results of Operations
Net Premiums Written	$	1,023.7		$	979.0		$	1,024.3		$	1,082.0		$	972.0

Total Specialty P&C
Personal Automobile	901.7			918.1			920.6			909.6			785.4
Commercial Automobile	119.9			114.2			107.7			100.7			92.2
Earned Premium	$	1,021.6		$	1,032.3		$	1,028.3		$	1,010.3		$	877.6

Net Investment Income	34.9			37.8			37.0			42.7			35.0
Change in Value of Alternative Energy Partnership Investments	(8.4)			(6.7)			(11.3)			(3.7)			(7.3)
Other Income	1.7			1.0			1.2			1.0			0.9
Total Revenues	1,049.8			1,064.4			1,055.2			1,050.3			906.2
Incurred Losses and LAE related to:
Current Year:
Non-catastrophe Losses and LAE	911.7			1,028.5			924.4			877.4			650.0
Catastrophe Losses and LAE	2.1			2.5			3.4			8.1			1.7
Prior Years:
Non-catastrophe Losses and LAE	(3.8)			(7.6)			25.1			81.3			(1.4)
Catastrophe Losses and LAE	0.7			—			(0.1)			—			0.4
Total Incurred Losses and LAE	910.7			1,023.4			952.8			966.8			650.7
Insurance Expenses	199.3			204.4			194.2			205.6			170.3

Operating Income (Loss)	(60.2)			(163.4)			(91.8)			(122.1)			85.2
Income Tax Benefit (Expense)	15.5			38.2			32.5			30.4			(5.1)
Segment Net Operating Income (Loss)	$	(44.7)		$	(125.2)		$	(59.3)		$	(91.7)		$	80.1
Ratios Based On Earned Premiums
Current Year Non-catastrophe Losses and LAE Ratio	89.2		%	99.6		%	90.0		%	86.9		%	74.1		%
Current Year Catastrophe Losses and LAE Ratio	0.2			0.2			0.3			0.8			0.2
Prior Years Non-catastrophe Losses and LAE Ratio	(0.4)			(0.7)			2.4			8.0			(0.2)
Prior Years Catastrophe Losses and LAE Ratio	0.1			—			—			—			—
Total Incurred Loss and LAE Ratio	89.1			99.1			92.7			95.7			74.1
Insurance Expense Ratio	19.5			19.8			18.9			20.4			19.4
Combined Ratio	108.6		%	118.9		%	111.6		%	116.1		%	93.5		%
Underlying Combined Ratio 1
Current Year Non-catastrophe Losses and LAE Ratio	89.2		%	99.6		%	90.0		%	86.9		%	74.1		%
Insurance Expense Ratio	19.5			19.8			18.9			20.4			19.4
Underlying Combined Ratio	108.7		%	119.4		%	108.9		%	107.3		%	93.5		%
Non-GAAP Measure Reconciliation
Combined Ratio as Reported	108.6		%	118.9		%	111.6		%	116.1		%	93.5		%
Less:
Current Year Catastrophe Losses and LAE Ratio	0.2			0.2			0.3			0.8			0.2
Prior Years Non-catastrophe Losses and LAE Ratio	(0.4)			(0.7)			2.4			8.0			(0.2)
Prior Years Catastrophe Losses and LAE Ratio	0.1			—			—			—			—
Underlying Combined Ratio	108.7		%	119.4		%	108.9		%	107.3		%	93.5		%
1 Underlying Combined Ratio is a non-GAAP measure, which is computed as the difference between three operating ratios: the combined ratio, the effect of catastrophes (excluding development of prior-year catastrophes) on the combined ratio and the effect of prior-year reserve development at the reporting date (including development on prior-year catastrophes) on the combined ratio.

Kemper Corporation

Specialty Property & Casualty Insurance Segment

Results of Operations and Selected Financial Information (continued)

(Dollars in Millions)

(Unaudited)


	Mar 31, 2022		Dec 31, 2021		Sep 30, 2021		Jun 30, 2021		Mar 31, 2021
Insurance Reserves:
Non-Standard Automobile	$	1,952.3	$	1,985.8	$	1,841.1	$	1,703.1	$	1,304.7
Commercial Automobile	356.5		333.9		302.4		281.6		257.2
Insurance Reserves	$	2,308.8	$	2,319.7	$	2,143.5	$	1,984.7	$	1,561.9
Insurance Reserves:
Loss and Allocated LAE Reserves:
Case and Allocated LAE	$	1,166.0	$	1,157.9	$	1,071.1	$	1,005.8	$	799.7
Incurred but Not Reported	934.0		953.0		881.6		810.2		614.1
Total Loss Reserves	2,100.0		2,110.9		1,952.7		1,816.0		1,413.8
Unallocated LAE Reserves	208.8		208.8		190.8		168.7		148.1
Insurance Reserves	$	2,308.8	$	2,319.7	$	2,143.5	$	1,984.7	$	1,561.9

Kemper Corporation

Specialty Property & Casualty Insurance Segment

Personal Automobile Insurance - Results of Operations and Selected Financial Information

(Dollars in Millions)

(Unaudited)


	Three Months Ended
	Mar 31, 2022			Dec 31, 2021			Sep 30, 2021			Jun 30, 2021			Mar 31, 2021
Results of Operations
Net Premiums Written	$	884.8		$	858.7		$	902.7		$	964.3		$	861.5

Earned Premiums	$	901.7		$	918.1		$	920.6		$	909.6		$	785.4
Net Investment Income	27.2			31.5			30.9			35.4			29.1
Change in Value of Alternative Energy Partnership Investments	(6.0)			(5.3)			(8.9)			(2.9)			(5.8)
Other Income	1.7			1.0			1.2			1.0			0.9
Total Revenues	924.6			945.3			943.8			943.1			809.6
Incurred Losses and LAE related to:
Current Year:
Non-catastrophe Losses and LAE	827.7			938.5			843.9			805.1			586.4
Catastrophe Losses and LAE	2.0			2.3			3.1			7.4			1.6
Prior Years:
Non-catastrophe Losses and LAE	(9.0)			(11.7)			25.1			76.0			(4.4)
Catastrophe Losses and LAE	0.7			—			(0.1)			—			0.4
Total Incurred Losses and LAE	821.4			929.1			872.0			888.5			584.0
Insurance Expenses	177.3			184.3			176.0			187.7			155.3

Operating Income (Loss)	(74.1)			(168.1)			(104.2)			(133.1)			70.3
Income Benefit (Expense)	17.7			38.4			32.4			31.8			(4.6)
Total Product Line Net Operating Income (Loss)	$	(56.4)		$	(129.7)		$	(71.8)		$	(101.3)		$	65.7
Ratios Based On Earned Premiums
Current Year Non-catastrophe Losses and LAE Ratio	91.8		%	102.2		%	91.7		%	88.5		%	74.7		%
Current Year Catastrophe Losses and LAE Ratio	0.2			0.3			0.3			0.8			0.2
Prior Years Non-catastrophe Losses and LAE Ratio	(1.0)			(1.3)			2.7			8.4			(0.6)
Prior Years Catastrophe Losses and LAE Ratio	0.1			—			—			—			0.1
Total Incurred Loss and LAE Ratio	91.1			101.2			94.7			97.7			74.4
Insurance Expense Ratio	19.7			20.1			19.1			20.6			19.8
Combined Ratio	110.8		%	121.3		%	113.8		%	118.3		%	94.2		%
Underlying Combined Ratio 1
Current Year Non-catastrophe Losses and LAE Ratio	91.8		%	102.2		%	91.7		%	88.5		%	74.7		%
Insurance Expense Ratio	19.7			20.1			19.1			20.6			19.8
Underlying Combined Ratio	111.5		%	122.3		%	110.8		%	109.1		%	94.5		%
Non-GAAP Measure Reconciliation
Combined Ratio	110.8		%	121.3		%	113.8		%	118.3		%	94.2		%
Less:
Current Year Catastrophe Losses and LAE Ratio	0.2			0.3			0.3			0.8			0.2
Prior Years Non-catastrophe Losses and LAE Ratio	(1.0)			(1.3)			2.7			8.4			(0.6)
Prior Years Catastrophe Losses and LAE Ratio	0.1			—			—			—			0.1
Underlying Combined Ratio	111.5		%	122.3		%	110.8		%	109.1		%	94.5		%
1 Underlying Combined Ratio is a non-GAAP measure, which is computed as the difference between three operating ratios: the combined ratio, the effect of catastrophes (excluding development of prior-year catastrophes) on the combined ratio and the effect of prior-year reserve development at the reporting date (including development on prior-year catastrophes) on the combined ratio.

Kemper Corporation

Specialty Property & Casualty Insurance Segment

Commercial Automobile Insurance - Results of Operations and Selected Financial Information

(Dollars in Millions)

(Unaudited)


	Three Months Ended
	Mar 31, 2022			Dec 31, 2021			Sep 30, 2021			Jun 30, 2021			Mar 31, 2021
Results of Operations
Net Premiums Written	$	138.9		$	120.3		$	121.6		$	117.7		$	110.5

Earned Premiums	$	119.9		$	114.2		$	107.7		$	100.7		$	92.2
Net Investment Income	7.7			6.3			6.1			7.3			5.9
Change in Value of Alternative Energy Partnership Investments	(2.4)			(1.4)			(2.4)			(0.8)			(1.5)

Total Revenues	125.2			119.1			111.4			107.2			96.6
Incurred Losses and LAE related to:
Current Year:
Non-catastrophe Losses and LAE	84.0			90.0			80.5			72.3			63.6
Catastrophe Losses and LAE	0.1			0.2			0.3			0.7			0.1
Prior Years:
Non-catastrophe Losses and LAE	5.2			4.1			—			5.3			3.0
Catastrophe Losses and LAE	—			—			—			—			—
Total Incurred Losses and LAE	89.3			94.3			80.8			78.3			66.7
Insurance Expenses	22.0			20.1			18.2			17.9			15.0

Operating Income (Loss)	13.9			4.7			12.4			11.0			14.9
Income Tax Benefit (Expense)	(2.2)			(0.2)			0.1			(1.4)			(0.5)
Total Product Line Net Operating Income (Loss)	$	11.7		$	4.5		$	12.5		$	9.6		$	14.4
Ratios Based On Earned Premiums
Current Year Non-catastrophe Losses and LAE Ratio	70.1		%	78.8		%	74.7		%	71.8		%	68.9		%
Current Year Catastrophe Losses and LAE Ratio	0.1			0.2			0.3			0.7			0.1
Prior Years Non-catastrophe Losses and LAE Ratio	4.3			3.6			—			5.3			3.3
Prior Years Catastrophe Losses and LAE Ratio	—			—			—			—			—
Total Incurred Loss and LAE Ratio	74.5			82.6			75.0			77.8			72.3
Insurance Expense Ratio	18.3			17.6			16.9			17.8			16.3
Combined Ratio	92.8		%	100.2		%	91.9		%	95.6		%	88.6		%
Underlying Combined Ratio 1
Current Year Non-catastrophe Losses and LAE Ratio	70.1		%	78.8		%	74.7		%	71.8		%	68.9		%
Insurance Expense Ratio	18.3			17.6			16.9			17.8			16.3
Underlying Combined Ratio	88.4		%	96.4		%	91.6		%	89.6		%	85.2		%
Non-GAAP Measure Reconciliation
Combined Ratio	92.8		%	100.2		%	91.9		%	95.6		%	88.6		%
Less:
Current Year Catastrophe Losses and LAE Ratio	0.1			0.2			0.3			0.7			0.1
Prior Years Non-catastrophe Losses and LAE Ratio	4.3			3.6			—			5.3			3.3
Prior Years Catastrophe Losses and LAE Ratio	—			—			—			—			—
Underlying Combined Ratio	88.4		%	96.4		%	91.6		%	89.6		%	85.2		%
1 Underlying Combined Ratio is a non-GAAP measure, which is computed as the difference between three operating ratios: the combined ratio, the effect of catastrophes (excluding development of prior-year catastrophes) on the combined ratio and the effect of prior-year reserve development at the reporting date (including development on prior-year catastrophes) on the combined ratio.

Kemper Corporation

Preferred Property & Casualty Insurance Segment

Results of Operations and Selected Financial Information

(Dollars in Millions)

(Unaudited)


	Three Months Ended
	Mar 31, 2022			Dec 31, 2021			Sep 30, 2021			Jun 30, 2021			Mar 31, 2021
Results of Operations
Net Premiums Written	$	137.4		$	153.2		$	164.8		$	169.6		$	154.4







Earned Premiums	$	155.6		$	162.6		$	163.7		$	163.2		$	162.2
Net Investment Income	12.5			17.1			16.1			19.5			15.9
Change in Value of Alternative Energy Partnership Investments	(3.9)			(3.8)			(6.4)			(2.0)			(4.1)

Total Revenues	164.2			175.9			173.4			180.7			174.0
Incurred Losses and LAE related to:
Current Year:
Non-catastrophe Losses and LAE	112.2			122.4			115.6			116.2			96.2
Catastrophe Losses and LAE	11.4			7.5			23.4			24.2			24.0
Prior Years:
Non-catastrophe Losses and LAE	2.1			8.4			—			5.0			0.1
Catastrophe Losses and LAE	(3.2)			(2.0)			0.1			(3.4)			(0.3)
Total Incurred Losses and LAE	122.5			136.3			139.1			142.0			120.0
Insurance Expenses	51.2			51.6			51.7			52.1			51.0

Operating Income (Loss)	(9.5)			(12.0)			(17.4)			(13.4)			3.0
Income Tax Benefit (Expense)	3.4			4.6			11.0			5.1			6.6
Segment Net Operating Income (Loss)	$	(6.1)		$	(7.4)		$	(6.4)		$	(8.3)		$	9.6
Ratios Based On Earned Premiums
Current Year Non-catastrophe Losses and LAE Ratio	72.2		%	75.2		%	70.6		%	71.2		%	59.3		%
Current Year Catastrophe Losses and LAE Ratio	7.3			4.6			14.3			14.8			14.8
Prior Years Non-catastrophe Losses and LAE Ratio	1.3			5.2			—			3.1			0.1
Prior Years Catastrophe Losses and LAE Ratio	(2.1)			(1.2)			0.1			(2.1)			(0.2)
Total Incurred Loss and LAE Ratio	78.7			83.8			85.0			87.0			74.0
Insurance Expense Ratio	32.9			31.7			31.6			31.9			31.4

Combined Ratio	111.6		%	115.5		%	116.6		%	118.9		%	105.4		%
Underlying Combined Ratio 1
Current Year Non-catastrophe Losses and LAE Ratio	72.2		%	75.2		%	70.6		%	71.2		%	59.3		%
Insurance Expense Ratio	32.9			31.7			31.6			31.9			31.4

Underlying Combined Ratio	105.1		%	106.9		%	102.2		%	103.1		%	90.7		%
Non-GAAP Measure Reconciliation
Combined Ratio as Reported	111.6		%	115.5		%	116.6		%	118.9		%	105.4		%
Less:
Current Year Catastrophe Losses and LAE Ratio	7.3			4.6			14.3			14.8			14.8
Prior Years Non-catastrophe Losses and LAE Ratio	1.3			5.2			—			3.1			0.1
Prior Years Catastrophe Losses and LAE Ratio	(2.1)			(1.2)			0.1			(2.1)			(0.2)
Underlying Combined Ratio	105.1		%	106.9		%	102.2		%	103.1		%	90.7		%
1 Underlying Combined Ratio is a non-GAAP measure, which is computed as the difference between three operating ratios: the combined ratio, the effect of catastrophes (excluding development of prior-year catastrophes) on the combined ratio and the effect of prior-year reserve development at the reporting date (including development on prior-year catastrophes) on the combined ratio.

Kemper Corporation

Preferred Property & Casualty Insurance Segment

Results of Operations and Selected Financial Information (continued)

(Dollars in Millions)

(Unaudited)


	Mar 31, 2022		Dec 31, 2021		Sep 30, 2021		Jun 30, 2021		Mar 31, 2021
Insurance Reserves:
Personal Automobile	$	307.9	$	308.6	$	290.0	$	282.9	$	275.9
Homeowners	93.1		95.4		108.5		110.7		107.6
Other Personal	30.6		29.2		30.1		31.0		30.7
Insurance Reserves	$	431.6	$	433.2	$	428.6	$	424.6	$	414.2
Insurance Reserves:
Loss and Allocated LAE Reserves:
Case and Allocated LAE	$	271.1	$	272.5	$	280.8	$	282.3	$	282.0
Incurred but Not Reported	131.8		131.9		120.4		116.1		105.6
Total Loss Reserves	402.9		404.4		401.2		398.4		387.6
Unallocated LAE Reserves	28.7		28.8		27.4		26.2		26.6
Insurance Reserves	$	431.6	$	433.2	$	428.6	$	424.6	$	414.2

Kemper Corporation

Preferred Property & Casualty Insurance Segment

Personal Automobile Insurance - Results of Operations and Selected Financial Information

(Dollars in Millions)

(Unaudited)


	Three Months Ended
	Mar 31, 2022			Dec 31, 2021			Sep 30, 2021			Jun 30, 2021			Mar 31, 2021
Results of Operations
Net Premiums Written	$	84.2		$	95.2		$	99.9		$	104.4		$	100.4

Earned Premiums	$	96.0		$	101.4		$	102.6		$	103.5		$	103.0
Net Investment Income	6.0			7.9			7.4			9.0			7.3
Change in Value of Alternative Energy Partnership Investments	(1.9)			(1.7)			(3.0)			(0.9)			(1.9)

Total Revenues	100.1			107.6			107.0			111.6			108.4
Incurred Losses and LAE related to:
Current Year:
Non-catastrophe Losses and LAE	80.5			96.2			84.8			81.6			67.8
Catastrophe Losses and LAE	0.5			1.3			2.7			2.8			0.6
Prior Years:
Non-catastrophe Losses and LAE	1.5			7.3			0.1			3.6			1.2
Catastrophe Losses and LAE	0.1			(0.1)			0.1			(0.2)			0.1
Total Incurred Losses and LAE	82.6			104.7			87.7			87.8			69.7
Insurance Expenses	31.2			32.7			32.7			33.6			32.8

Operating Income (Loss)	(13.7)			(29.8)			(13.4)			(9.8)			5.9
Income Tax Benefit (Expense)	3.6			7.2			6.2			3.1			2.1
Total Product Line Net Operating Income (Loss)	$	(10.1)		$	(22.6)		$	(7.2)		$	(6.7)		$	8.0
Ratios Based On Earned Premiums
Current Year Non-catastrophe Losses and LAE Ratio	83.8		%	94.9		%	82.7		%	78.8		%	65.8		%
Current Year Catastrophe Losses and LAE Ratio	0.5			1.3			2.6			2.7			0.6
Prior Years Non-catastrophe Losses and LAE Ratio	1.6			7.2			0.1			3.5			1.2
Prior Years Catastrophe Losses and LAE Ratio	0.1			(0.1)			0.1			(0.2)			0.1
Total Incurred Loss and LAE Ratio	86.0			103.3			85.5			84.8			67.7
Insurance Expense Ratio	32.5			32.2			31.9			32.5			31.8
Combined Ratio	118.5		%	135.5		%	117.4		%	117.3		%	99.5		%
Underlying Combined Ratio 1
Current Year Non-catastrophe Losses and LAE Ratio	83.8		%	94.9		%	82.7		%	78.8		%	65.8		%
Insurance Expense Ratio	32.5			32.2			31.9			32.5			31.8
Underlying Combined Ratio	116.3		%	127.1		%	114.6		%	111.3		%	97.6		%
Non-GAAP Measure Reconciliation
Combined Ratio	118.5		%	135.5		%	117.4		%	117.3		%	99.5		%
Less:
Current Year Catastrophe Losses and LAE Ratio	0.5			1.3			2.6			2.7			0.6
Prior Years Non-catastrophe Losses and LAE Ratio	1.6			7.2			0.1			3.5			1.2
Prior Years Catastrophe Losses and LAE Ratio	0.1			(0.1)			0.1			(0.2)			0.1
Underlying Combined Ratio	116.3		%	127.1		%	114.6		%	111.3		%	97.6		%
1 Underlying Combined Ratio is a non-GAAP measure, which is computed as the difference between three operating ratios: the combined ratio, the effect of catastrophes (excluding development of prior-year catastrophes) on the combined ratio and the effect of prior-year reserve development at the reporting date (including development on prior-year catastrophes) on the combined ratio.

Kemper Corporation

Preferred Property & Casualty Insurance Segment

Homeowners and Other Personal Insurance - Results of Operations and Selected Financial Information

(Dollars in Millions)

(Unaudited)


	Three Months Ended
	Mar 31, 2022			Dec 31, 2021			Sep 30, 2021			Jun 30, 2021			Mar 31, 2021
Results of Operations
Net Premiums Written	$	53.2		$	58.0		$	64.9		$	65.2		$	54.0

Earned Premiums	$	59.6		$	61.2		$	61.1		$	59.7		$	59.2
Net Investment Income	6.5			9.2			8.7			10.5			8.6
Change in Value of Alternative Energy Partnership Investments	(2.0)			(2.1)			(3.4)			(1.1)			(2.2)
Total Revenues	64.1			68.3			66.4			69.1			65.6
Incurred Losses and LAE related to:
Current Year:
Non-catastrophe Losses and LAE	31.7			26.2			30.8			34.6			28.4
Catastrophe Losses and LAE	10.9			6.2			20.7			21.4			23.4
Prior Years:
Non-catastrophe Losses and LAE	0.6			1.1			(0.1)			1.4			(1.1)
Catastrophe Losses and LAE	(3.3)			(1.9)			—			(3.2)			(0.4)
Total Incurred Losses and LAE	39.9			31.6			51.4			54.2			50.3
Insurance Expenses	20.0			18.9			19.0			18.5			18.2
Operating Income (Loss)	4.2			17.8			(4.0)			(3.6)			(2.9)
Income Tax Benefit (Expense)	(0.2)			(2.6)			4.8			2.0			4.5
Total Product Line Net Operating Income (Loss)	$	4.0		$	15.2		$	0.8		$	(1.6)		$	1.6
Ratios Based On Earned Premiums
Current Year Non-catastrophe Losses and LAE Ratio	53.1		%	42.8		%	50.4		%	58.1		%	48.1		%
Current Year Catastrophe Losses and LAE Ratio	18.3			10.1			33.9			35.8			39.5
Prior Years Non-catastrophe Losses and LAE Ratio	1.0			1.8			(0.2)			2.3			(1.9)
Prior Years Catastrophe Losses and LAE Ratio	(5.5)			(3.1)			—			(5.4)			(0.7)
Total Incurred Loss and LAE Ratio	66.9			51.6			84.1			90.8			85.0
Insurance Expense Ratio	33.6			30.9			31.1			31.0			30.7
Combined Ratio	100.5		%	82.5		%	115.2		%	121.8		%	115.7		%
Underlying Combined Ratio 1
Current Year Non-catastrophe Losses and LAE Ratio	53.1		%	42.8		%	50.4		%	58.1		%	48.1		%
Insurance Expense Ratio	33.6			30.9			31.1			31.0			30.7
Underlying Combined Ratio	86.7		%	73.7		%	81.5		%	89.1		%	78.8		%
Non-GAAP Measure Reconciliation
Combined Ratio	100.5		%	82.5		%	115.2		%	121.8		%	115.7		%
Less:
Current Year Catastrophe Losses and LAE Ratio	18.3			10.1			33.9			35.8			39.5
Prior Years Non-catastrophe Losses and LAE Ratio	1.0			1.8			(0.2)			2.3			(1.9)
Prior Years Catastrophe Losses and LAE Ratio	(5.5)			(3.1)			—			(5.4)			(0.7)
Underlying Combined Ratio	86.7		%	73.7		%	81.5		%	89.1		%	78.8		%
1Underlying Combined Ratio is a non-GAAP measure, which is computed as the difference between three operating ratios: the combined ratio, the effect of catastrophes (excluding development of prior-year catastrophes) on the combined ratio and the effect of prior-year reserve development at the reporting date (including development on prior-year catastrophes) on the combined ratio.

Kemper Corporation

Preferred Property & Casualty Insurance Segment

Homeowners Insurance - Results of Operations and Selected Financial Information

(Dollars in Millions)

(Unaudited)


	Three Months Ended
	Mar 31, 2022			Dec 31, 2021			Sep 30, 2021			Jun 30, 2021			Mar 31, 2021
Results of Operations
Net Premiums Written	$	45.5		$	49.9		$	56.1		$	56.3		$	46.1

Earned Premiums	$	51.3		$	52.7		$	52.5		$	51.3		$	50.8
Net Investment Income	5.4			8.3			7.9			9.6			7.8
Change in Value of Alternative Energy Partnership Investments	(1.7)			(1.9)			(3.1)			(1.0)			(2.0)
Total Revenues	55.0			59.1			57.3			59.9			56.6
Incurred Losses and LAE related to:
Current Year:
Non-catastrophe Losses and LAE	27.5			22.8			26.6			30.5			24.2
Catastrophe Losses and LAE	10.8			6.0			20.4			21.8			22.0
Prior Years:
Non-catastrophe Losses and LAE	(1.6)			(0.1)			(0.2)			0.2			(2.5)
Catastrophe Losses and LAE	(2.8)			(2.1)			0.1			(1.8)			(0.1)
Total Incurred Losses and LAE	33.9			26.6			46.9			50.7			43.6
Insurance Expenses	17.5			16.3			16.3			16.1			15.7

Operating Income (Loss)	3.6			16.2			(5.9)			(6.9)			(2.7)
Income Tax Benefit (Expense)	(0.2)			(2.4)			4.8			2.6			4.1
Total Product Line Net Operating Income (Loss)	$	3.4		$	13.8		$	(1.1)		$	(4.3)		$	1.4
Ratios Based On Earned Premiums
Current Year Non-catastrophe Losses and LAE Ratio	53.6		%	43.3		%	50.6		%	59.4		%	47.6		%
Current Year Catastrophe Losses and LAE Ratio	21.1			11.4			38.9			42.5			43.3
Prior Years Non-catastrophe Losses and LAE Ratio	(3.1)			(0.2)			(0.4)			0.4			(4.9)
Prior Years Catastrophe Losses and LAE Ratio	(5.5)			(4.0)			0.2			(3.5)			(0.2)
Total Incurred Loss and LAE Ratio	66.1			50.5			89.3			98.8			85.8
Insurance Expense Ratio	34.1			30.9			31.0			31.4			30.9
Combined Ratio	100.2		%	81.4		%	120.3		%	130.2		%	116.7		%
Underlying Combined Ratio 1
Current Year Non-catastrophe Losses and LAE Ratio	53.6		%	43.3		%	50.6		%	59.4		%	47.6		%
Insurance Expense Ratio	34.1			30.9			31.0			31.4			30.9
Underlying Combined Ratio	87.7		%	74.2		%	81.6		%	90.8		%	78.5		%
Non-GAAP Measure Reconciliation
Combined Ratio	100.2		%	81.4		%	120.3		%	130.2		%	116.7		%
Less:
Current Year Catastrophe Losses and LAE Ratio	21.1			11.4			38.9			42.5			43.3
Prior Years Non-catastrophe Losses and LAE Ratio	(3.1)			(0.2)			(0.4)			0.4			(4.9)
Prior Years Catastrophe Losses and LAE Ratio	(5.5)			(4.0)			0.2			(3.5)			(0.2)
Underlying Combined Ratio	87.7		%	74.2		%	81.6		%	90.8		%	78.5		%
1 Underlying Combined Ratio is a non-GAAP measure, which is computed as the difference between three operating ratios: the combined ratio, the effect of catastrophes (excluding development of prior-year catastrophes) on the combined ratio and the effect of prior-year reserve development at the reporting date (including development on prior-year catastrophes) on the combined ratio.

Kemper Corporation

Preferred Property & Casualty Insurance Segment

Other Personal Insurance - Results of Operations and Selected Financial Information

(Dollars in Millions)

(Unaudited)


	Three Months Ended
	Mar 31, 2022			Dec 31, 2021			Sep 30, 2021			Jun 30, 2021			Mar 31, 2021
Results of Operations
Net Premiums Written	$	7.7		$	8.1		$	8.8		$	8.9		$	7.9

Earned Premiums	$	8.3		$	8.5		$	8.6		$	8.4		$	8.4
Net Investment Income	1.1			0.9			0.8			0.9			0.8
Change in Value of Alternative Energy Partnership Investments	(0.3)			(0.2)			(0.3)			(0.1)			(0.2)
Total Revenues	9.1			9.2			9.1			9.2			9.0
Incurred Losses and LAE related to:
Current Year:
Non-catastrophe Losses and LAE	4.2			3.4			4.2			4.1			4.2
Catastrophe Losses and LAE	0.1			0.2			0.3			(0.4)			1.4
Prior Years:
Non-catastrophe Losses and LAE	2.2			1.2			0.1			1.2			1.4
Catastrophe Losses and LAE	(0.5)			0.2			(0.1)			(1.4)			(0.3)
Total Incurred Losses and LAE	6.0			5.0			4.5			3.5			6.7
Insurance Expenses	2.5			2.6			2.7			2.4			2.5
Operating Income (Loss)	0.6			1.6			1.9			3.3			(0.2)
Income Tax Benefit (Expense)	—			(0.2)			—			(0.6)			0.4
Total Product Line Net Operating Income (Loss)	$	0.6		$	1.4		$	1.9		$	2.7		$	0.2
Ratios Based On Earned Premiums
Current Year Non-catastrophe Losses and LAE Ratio	50.6		%	39.9		%	48.8		%	48.9		%	50.0		%
Current Year Catastrophe Losses and LAE Ratio	1.2			2.4			3.5			(4.8)			16.7
Prior Years Non-catastrophe Losses and LAE Ratio	26.5			14.1			1.2			14.3			16.7
Prior Years Catastrophe Losses and LAE Ratio	(6.0)			2.4			(1.2)			(16.7)			(3.6)
Total Incurred Loss and LAE Ratio	72.3			58.8			52.3			41.7			79.8
Insurance Expense Ratio	30.1			30.6			31.4			28.6			29.8
Combined Ratio	102.4		%	89.4		%	83.7		%	70.3		%	109.6		%
Underlying Combined Ratio 1
Current Year Non-catastrophe Losses and LAE Ratio	50.6		%	39.9		%	48.8		%	48.9		%	50.0		%
Insurance Expense Ratio	30.1			30.6			31.4			28.6			29.8
Underlying Combined Ratio	80.7		%	70.5		%	80.2		%	77.5		%	79.8		%
Non-GAAP Measure Reconciliation
Combined Ratio	102.4		%	89.4		%	83.7		%	70.3		%	109.6		%
Less:
Current Year Catastrophe Losses and LAE Ratio	1.2			2.4			3.5			(4.8)			16.7
Prior Years Non-catastrophe Losses and LAE Ratio	26.5			14.1			1.2			14.3			16.7
Prior Years Catastrophe Losses and LAE Ratio	(6.0)			2.4			(1.2)			(16.7)			(3.6)
Underlying Combined Ratio	80.7		%	70.5		%	80.2		%	77.5		%	79.8		%
1 Underlying Combined Ratio is a non-GAAP measure, which is computed as the difference between three operating ratios: the combined ratio, the effect of catastrophes (excluding development of prior-year catastrophes) on the combined ratio and the effect of prior-year reserve development at the reporting date (including development on prior-year catastrophes) on the combined ratio.

Kemper Corporation

Life & Health Insurance Segment

Results of Operations and Selected Financial Information

(Dollars in Millions)

(Unaudited)


	Three Months Ended
		Mar 31, 2022		Dec 31, 2021		Sep 30, 2021		Jun 30, 2021		Mar 31, 2021
Results of Operations




Earned Premiums		$	161.4	$	164.2	$	164.1	$	164.2	$	161.0
Net Investment Income		49.4		50.8		48.4		52.4		51.1
Change in Value of Alternative Energy Partnership Investments		(4.4)		(3.7)		(6.1)		(2.0)		(4.0)
Other Income		—		(1.6)		0.1		0.1		0.1
Total Revenues		206.4		209.7		206.5		214.7		208.2
Policyholders’ Benefits and Incurred Losses and LAE		120.1		116.2		119.5		115.3		118.7
Insurance Expenses		85.1		89.5		92.9		86.2		90.3

Operating Income (Loss)		1.2		4.0		(5.9)		13.2		(0.8)
Income Tax Benefit (Expense)		1.9		1.1		8.7		(0.2)		8.1
Segment Net Operating Income (Loss)		$	3.1	$	5.1	$	2.8	$	13.0	$	7.3


	Mar 31, 2022		Dec 31, 2021		Sep 30, 2021		Jun 30, 2021		Mar 31, 2021
Insurance Reserves:
Future Policyholder Benefits	$	3,467.5	$	3,454.1	$	3,436.1	$	3,466.4	$	3,448.0
Incurred Losses and LAE Reserves:
Life	63.6		60.7		62.3		58.8		68.1
Accident and Health	25.2		26.1		25.7		26.4		25.5
Property	3.1		3.6		7.4		4.4		5.4
Total Incurred Losses and LAE Reserves	91.9		90.4		95.4		89.6		99.0
Insurance Reserves	$	3,559.4	$	3,544.5	$	3,531.5	$	3,556.0	$	3,547.0

Kemper Corporation

Life & Health Insurance Segment

Life Insurance - Results of Operations and Selected Financial Information

(Dollars in Millions)

(Unaudited)


	Three Months Ended
		Mar 31, 2022		Dec 31, 2021		Sep 30, 2021		Jun 30, 2021		Mar 31, 2021
Results of Operations
Earned Premiums		$	101.3	$	101.5	$	101.5	$	100.6	$	98.1
Net Investment Income		47.9		49.3		47.0		50.9		49.6
Change in Value of Alternative Energy Partnership Investments		(4.0)		(3.5)		(5.8)		(1.9)		(3.8)
Other Income		—		(1.6)		—		—		—
Total Revenues		145.2		145.7		142.7		149.6		143.9
Policyholders’ Benefits and Incurred Losses and LAE		90.6		88.2		87.3		81.9		87.9
Insurance Expenses		57.4		60.5		61.5		55.6		58.0

Operating Income (Loss)		(2.8)		(3.0)		(6.1)		12.1		(2.0)
Income Tax Benefit (Expense)		2.6		2.4		8.4		(0.1)		8.0
Total Product Line Operating Income (Loss)		$	(0.2)	$	(0.6)	$	2.3	$	12.0	$	6.0

Kemper Corporation

Life & Health Insurance Segment

Accident & Health Insurance - Results of Operations and Selected Financial Information

(Dollars in Millions)

(Unaudited)


	Three Months Ended
	Mar 31, 2022		Dec 31, 2021		Sep 30, 2021		Jun 30, 2021		Mar 31, 2021
Results of Operations
Earned Premiums	$	45.8	$	47.6	$	47.0	$	47.9	$	47.4
Net Investment Income	0.7		0.9		0.9		0.8		1.0
Change in Value of Alternative Energy Partnership Investments	(0.1)		(0.1)		(0.1)		—		(0.1)
Other Income	—		—		0.1		0.1		0.1
Total Revenues	46.4		48.4		47.9		48.8		48.4
Policyholders’ Benefits and Incurred Losses and LAE	23.5		21.9		22.9		26.8		24.5
Insurance Expenses	20.8		21.5		23.5		22.2		24.4
Operating Income (Loss)	2.1		5.0		1.5		(0.2)		(0.5)
Income Tax Benefit (Expense)	(0.4)		(1.0)		(0.2)		0.1		0.2
Total Product Line Net Operating Income (Loss)	$	1.7	$	4.0	$	1.3	$	(0.1)	$	(0.3)

Kemper Corporation

Life & Health Insurance Segment

Property Insurance - Results of Operations and Selected Financial Information

(Dollars in Millions)

(Unaudited)


	Three Months Ended
	Mar 31, 2022			Dec 31, 2021			Sep 30, 2021			Jun 30, 2021			Mar 31, 2021
Results of Operations
Earned Premiums	$	14.3		$	15.1		$	15.6		$	15.7		$	15.5
Net Investment Income	0.8			0.6			0.5			0.7			0.5
Change in Value of Alternative Energy Partnership Investments	(0.3)			(0.1)			(0.2)			(0.1)			(0.1)

Total Revenues	14.8			15.6			15.9			16.3			15.9
Incurred Losses and LAE related to:
Current Year:
Non-catastrophe Losses and LAE	4.1			3.2			3.6			4.2			3.2
Catastrophe Losses and LAE	0.4			2.9			5.7			2.5			1.9
Prior Years:
Non-catastrophe Losses and LAE	0.6			—			0.4			0.1			0.7
Catastrophe Losses and LAE	0.9			—			(0.4)			(0.2)			0.5
Total Incurred Losses and LAE	6.0			6.1			9.3			6.6			6.3
Insurance Expenses	6.9			7.5			7.9			8.4			7.9
Operating Income (Loss)	1.9			2.0			(1.3)			1.3			1.7
Income Tax Benefit (Expense)	(0.3)			(0.3)			0.5			(0.2)			(0.1)
Total Product Line Net Operating Income (Loss)	$	1.6		$	1.7		$	(0.8)		$	1.1		$	1.6
Ratios Based On Earned Premiums
Current Year Non-catastrophe Losses and LAE Ratio	28.7		%	21.2		%	23.1		%	26.8		%	20.6		%
Current Year Catastrophe Losses and LAE Ratio	2.8			19.2			36.5			15.9			12.3
Prior Years Non-catastrophe Losses and LAE Ratio	4.2			—			2.6			0.6			4.5
Prior Years Catastrophe Losses and LAE Ratio	6.3			—			(2.6)			(1.3)			3.2
Total Incurred Loss and LAE Ratio	42.0			40.4			59.6			42.0			40.6
Insurance Expense Ratio	48.3			49.7			50.6			53.5			51.0
Combined Ratio	90.3		%	90.1		%	110.2		%	95.5		%	91.6		%
Underlying Combined Ratio 1
Current Year Non-catastrophe Losses and LAE Ratio	28.7		%	21.2		%	23.1		%	26.8		%	20.6		%
Insurance Expense Ratio	48.3			49.7			50.6			53.5			51.0
Underlying Combined Ratio	77.0		%	70.9		%	73.7		%	80.3		%	71.6		%
Non-GAAP Measure Reconciliation
Combined Ratio	90.3		%	90.1		%	110.2		%	95.5		%	91.6		%
Less:
Current Year Catastrophe Losses and LAE Ratio	2.8			19.2			36.5			15.9			12.3
Prior Years Non-catastrophe Losses and LAE Ratio	4.2			—			2.6			0.6			4.5
Prior Years Catastrophe Losses and LAE Ratio	6.3			—			(2.6)			(1.3)			3.2
Underlying Combined Ratio	77.0		%	70.9		%	73.7		%	80.3		%	71.6		%
1 Underlying Combined Ratio is a non-GAAP measure, which is computed as the difference between three operating ratios: the combined ratio, the effect of catastrophes (excluding development of prior-year catastrophes) on the combined ratio and the effect of prior-year reserve development at the reporting date (including development on prior-year catastrophes) on the combined ratio.

Kemper Corporation

Expenses

(Dollars in Millions)

(Unaudited)


	Three Months Ended
		Mar 31, 2022		Dec 31, 2021		Sep 30, 2021		Jun 30, 2021		Mar 31, 2021
Insurance Expenses:
Commissions		$	191.9	$	192.3	$	210.0	$	220.1	$	195.2
General Expenses		87.1		87.5		85.1		82.3		84.6
Premium Taxes		25.4		25.2		26.5		27.2		25.4
Total Costs Incurred		304.4		305.0		321.6		329.6		305.2



Net Policy Acquisition Costs Deferred		(2.5)		(1.0)		(23.8)		(41.1)		(22.4)
Amortization of Valuation of Business Acquired ("VOBA")		2.1		5.1		13.5		25.5		0.9

Insurance Expenses		304.0		309.1		311.3		314.0		283.7
Loss from Early Extinguishment of Debt		3.7		—		—		—		—
Interest and Other Expenses:
Interest Expense		12.7		10.6		10.7		11.2		11.1
Other Expenses:
Acquisition Related Transaction, Integration and Other Costs		4.7		9.2		8.0		10.4		16.3

Other		36.7		36.4		33.2		32.5		29.8
Other Expenses		41.4		45.6		41.2		42.9		46.1
Interest and Other Expenses		54.1		56.2		51.9		54.1		57.2
Total Expenses		$	361.8	$	365.3	$	363.2	$	368.1	$	340.9

Kemper Corporation

Details of Investment Performance

(Dollars in Millions)

(Unaudited)


	Three Months Ended
	Mar 31, 2022		Dec 31, 2021		Sep 30, 2021		Jun 30, 2021		Mar 31, 2021
Net Investment Income
Interest on Fixed Income Securities	$	68.7	$	70.6	$	68.4	$	69.7	$	69.0
Dividends on Equity Securities Excluding Alternative Investments	1.5		6.1		2.9		4.8		2.1
Alternative Investments:
Equity Method Limited Liability Investments	13.3		5.8		12.0		16.4		22.5

Limited Liability Investments Included in Equity Securities	7.6		17.6		9.5		15.3		4.5
Total Alternative Investments	20.9		23.4		21.5		31.7		27.0
Short-term Investments	0.1		0.4		0.2		(0.8)		1.2
Loans to Policyholders	5.5		5.4		5.4		5.4		5.5
Real Estate	2.2		2.2		2.3		2.4		2.4
Other	10.0		9.3		9.1		9.3		4.7
Total Investment Income	108.9		117.4		109.8		122.5		111.9
Investment Expenses:
Real Estate	2.5		2.9		2.6		2.1		2.1
Other Investment Expenses	6.4		6.1		5.3		6.5		6.7
Total Investment Expenses	8.9		9.0		7.9		8.6		8.8
Net Investment Income	$	100.0	$	108.4	$	101.9	$	113.9	$	103.1
Net Realized Gains (Losses) on Sales of Investments
Fixed Maturities:
Gains on Sales	$	0.4	$	20.7	$	10.3	$	19.2	$	13.2
Losses on Sales	(0.8)		(0.4)		(0.4)		(0.2)		(1.1)
Equity Securities:
Gains on Sales	2.0		2.3		0.1		—		1.7
Losses on Sales	(0.1)		(0.5)		(0.2)		—		—
Equity Method Limited Liability Investments:
Gains on Sales	—		—		0.4		—		—
Losses on Sales	—		—		—		—		—
Real Estate:
Gains on Sales	—		—		(0.1)		0.2		—
Losses on Sales	—		(0.4)		—		—		—





Net Realized Gains (Losses) on Sales of Investments	$	1.5	$	21.7	$	10.1	$	19.2	$	13.8
Net Impairment Losses Recognized in Earnings
Fixed Maturities	$	(8.9)	$	(3.1)	$	0.5	$	(0.6)	$	(3.2)
Equity Securities	—		(0.1)		(0.7)		(2.6)		(0.8)
Real Estate	—		—		(0.4)		—		—
Net Impairment Losses Recognized in Earnings	$	(8.9)	$	(3.2)	$	(0.6)	$	(3.2)	$	(4.0)

Kemper Corporation

Details of Invested Assets

(Dollars in Millions)

(Unaudited)


	Mar 31, 2022				Dec 31, 2021				Dec 31, 2020
	Carrying Value		Percent of Total1		Carrying Value		Percent of Total1		Carrying Value		Percent of Total1
Fixed Maturities Reported at Fair Value:
U.S. Government and Government Agencies and Authorities	$	630.4	6.3	%	$	637.4	6.1	%	$	585.3	5.6	%
States and Political Subdivisions	1,770.2		17.8		1,890.1		18.2		1,589.5		15.2
Foreign Governments	5.0		0.1		5.5		0.1		5.2		—
Corporate Securities:
Bonds and Notes	4,156.1		41.7		4,386.9		42.2		4,425.4		42.5
Redeemable Preferred Stocks	6.8		0.1		7.4		0.1		7.5		0.1
Collateralized Loan Obligations	897.9		9.0		752.1		7.2		767.7		7.4
Other Mortgage- and Asset-backed	317.5		3.2		307.5		3.0		225.3		2.2
Total Fixed Maturities Reported at Fair Value	7,783.9		78.2		7,986.9		76.9		7,605.9		73.0
Equity Securities Reported at Fair Value:
Preferred Stocks	49.4		0.5		51.8		0.5		59.1		0.6
Common Stocks	2.7		—		21.8		0.2		10.8		0.1
Other Equity Interests:
Exchange Traded Funds	201.6		2.0		432.0		4.2		496.6		4.8
Limited Liability Companies and Limited Partnerships	317.8		3.2		325.0		3.1		292.0		2.8
Total Equity Securities Reported at Fair Value	571.5		5.7		830.6		8.0		858.5		8.2
Equity Securities Reported at Modified Cost:
Preferred Stocks	7.1		0.1		7.1		0.1		8.1		0.1
Common Stocks	20.5		0.2		17.4		0.2		16.3		0.2
Limited Liability Companies and Limited Partnerships	7.6		0.1		7.8		0.1		15.7		0.2
Total Equity Securities Reported at Modified Cost	35.2		0.4		32.3		0.4		40.1		0.5
Convertible Securities at Fair Value	46.1		0.5		46.4		0.4		39.9		0.4
Equity Method Limited Liability Investments	230.0		2.3		241.9		2.3		204.0		2.0
Alternative Energy Partnership Investments	22.4		0.2		39.6		0.4		21.3		0.2

Short-term Investments at Cost which Approximates Fair Value	243.8		2.4		284.1		2.7		875.4		8.4
Other Investments:
Company Owned Life Insurance	556.4		5.6		448.1		4.3		327.4		3.1
Loans to Policyholders at Unpaid Principal	284.7		2.9		286.2		2.8		297.9		2.9
Real Estate at Depreciated Cost	93.3		0.9		94.0		0.9		98.7		0.9
Mortgage Loans	99.8		1.0		96.8		0.9		54.6		0.5

Other	1.0		—		0.5		—		0.4		—
Total Other Investments	1,035.2		10.4		925.6		8.9		779.0		7.4
Total Investments	$	9,968.1	100.0	%	$	10,387.4	100.0	%	$	10,424.1	100.0	%
1 Sum of percentages for individual lines may not equal subtotals and grand total due to rounding.

Kemper Corporation

Details of Invested Assets (continued)

(Dollars in Millions)

(Unaudited)


	Mar 31, 2022				Dec 31, 2021				Dec 31, 2020
	Carrying Value		Percent of Total1		Carrying Value		Percent of Total1		Carrying Value		Percent of Total1
S&P Equivalent Rating for Fixed Maturities
AAA, AA, A	$	5,302.9	68.1	%	$	5,351.6	67.0	%	$	4,759.9	62.6	%
BBB	2,087.4		26.8		2,215.1		27.7		2,355.6		31.0
BB, B	307.0		4.0		331.0		4.2		353.1		4.6
CCC or Lower	86.6		1.1		89.2		1.1		137.3		1.8
Total Investments in Fixed Maturities	$	7,783.9	100.0	%	$	7,986.9	100.0	%	$	7,605.9	100.0	%
Duration (in Years)
Total Investments in Fixed Maturities	8.1				8.5				7.8
1 Sum of percentages for individual lines may not equal subtotals and grand total due to rounding.

Kemper Corporation

Investment Concentration

(Dollars in Millions)

(Unaudited)


	Mar 31, 2022				Dec 31, 2021				Dec 31, 2020
Fair Value of Non-governmental Fixed Maturities by Industry	Amount		Percent of Total Investments		Amount		Percent of Total Investments		Amount		Percent of Total Investments
Finance, Insurance and Real Estate	$	2,135.8	21.4	%	$	1,996.7	19.2	%	$	1,916.3	18.4	%
Manufacturing	1,445.9		14.5		1,571.0		15.1		1,633.5		15.7
Transportation, Communication and Utilities	769.1		7.7		815.8		7.9		825.5		7.9
Services	597.7		6.0		617.5		5.9		581.3		5.6
Mining	239.0		2.4		254.3		2.4		285.7		2.7
Retail Trade	162.4		1.6		171.4		1.7		172.6		1.7
Construction	20.4		0.2		13.1		0.1		—		—
Wholesale Trade	0.2		—		—		—		—		—

Other	7.9		0.1		14.1		0.1		11.0		0.1
Total Fair Value of Non-governmental Fixed Maturities	$	5,378.4	53.9	%	$	5,453.9	52.4	%	$	5,425.9	52.1	%


	Mar 31, 2022
Ten Largest Investment Exposures 1	Fair Value		Percent of Total Investments
Fixed Maturities:
States including their Political Subdivisions:
Texas	$	136.6	1.4	%
California	103.7		1.0
New York	91.4		0.9
Georgia	89.8		0.9
Michigan	76.6		0.8
Florida	70.8		0.7
Louisiana	69.7		0.7
Colorado	65.2		0.7
Equity Securities at Fair Value—Other Equity Interests:

Vanguard Total World Stock ETF	112.1		1.1
iShares® Core MSCI Total International Stock ETF	75.6		0.8

Total	$	891.5	9.0	%

1Excluding Investments in U.S. Government and Government Agencies and Authorities at March 31, 2022.

Kemper Corporation

Municipal Bond Securities

(Dollars in Millions)

(Unaudited)


	Mar 31, 2022
	State General Obligation		Political Subdivision General Obligation		Revenue		Total Fair Value		Percent of Total Muni Bond1		Percent of Total Investments1
Texas	$	22.2	$	108.3	$	6.1	$	136.6	7.7	%	1.4	%
California	12.3		84.7		6.8		103.8		5.9		1.0
New York	8.3		77.4		5.8		91.5		5.2		0.9
Georgia	8.0		76.9		4.9		89.8		5.1		0.9
Michigan	—		62.5		14.0		76.5		4.3		0.8
Florida	—		70.8		—		70.8		4.0		0.7
Louisiana	5.5		29.3		35.0		69.8		3.9		0.7
Colorado	—		65.2		—		65.2		3.7		0.7
Pennsylvania	3.3		53.6		5.6		62.5		3.5		0.6
Virginia	15.5		35.6		6.5		57.6		3.3		0.6
Washington	1.5		37.7		17.1		56.3		3.2		0.6
Oregon	2.6		23.7		29.7		56.0		3.2		0.6
Massachusetts	1.4		48.2		5.9		55.5		3.1		0.6
Maryland	7.8		38.1		2.0		47.9		2.7		0.5
Illinois	0.6		41.6		—		42.2		2.4		0.4
Minnesota	2.2		38.7		—		40.9		2.3		0.4
Ohio	—		34.8		5.8		40.6		2.3		0.4
Tennessee	10.7		26.4		3.3		40.4		2.3		0.4
Indiana	—		36.4		—		36.4		2.1		0.4
New Mexico	—		34.7		—		34.7		2.0		0.3
Utah	—		34.1		—		34.1		1.9		0.3
Connecticut	—		17.3		14.7		32.0		1.8		0.3
Missouri	1.2		29.5		—		30.7		1.7		0.3
District of Columbia	—		21.8		6.5		28.3		1.6		0.3
Rhode Island	1.7		22.8		—		24.5		1.4		0.2
Mississippi	—		10.2		13.6		23.8		1.3		0.2
Arizona	0.8		22.3		—		23.1		1.3		0.2
North Carolina	1.9		21.1		—		23.0		1.3		0.2
Hawaii	4.1		3.6		15.1		22.8		1.3		0.2
Nebraska	7.3		11.1		—		18.4		1.0		0.2
Arkansas	—		—		18.3		18.3		1.0		0.2
South Carolina	—		18.0		—		18.0		1.0		0.2
New Hampshire	0.5		16.8		—		17.3		1.0		0.2
Iowa	—		16.6		—		16.6		0.9		0.2
Kentucky	—		16.0		—		16.0		0.9		0.2
Alabama	—		15.8		—		15.8		0.9		0.2
North Dakota	—		14.6		—		14.6		0.8		0.1
Oklahoma	—		14.3		—		14.3		0.8		0.1
South Dakota	—		11.7		—		11.7		0.7		0.1
All Other States	10.2		79.3		2.7		92.2		5.2		0.9
Total	$	129.6	$	1,421.5	$	219.4	$	1,770.5	100.0	%	17.8	%
1 Sum of percentages for individual lines may not equal total due to rounding.

Kemper Corporation

Investments in Limited Liability

Companies and Limited Partnerships

(Dollars in Millions)

(Unaudited)


	Unfunded Commitment		Reported Value
Asset Class	Mar 31, 2022		Mar 31, 2022		Dec 31, 2021
Reported as Equity Method Limited Liability Investments:
Mezzanine Debt	$	40.2	$	121.0	$	120.0
Senior Debt	49.0		25.8		27.5
Distressed Debt	—		18.9		21.7
Secondary Transactions	2.1		12.9		11.7
Leveraged Buyout	0.9		9.2		8.7
Growth Equity	—		1.3		0.7
Real Estate	—		29.7		29.9
Hedge Fund	—		0.5		8.7
Other	—		10.7		13.0
Total Equity Method Limited Liability Investments	92.2		230.0		241.9

Alternative Energy Partnership Investments	—		22.4		39.6

Reported as Other Equity Interests at Fair Value:
Mezzanine Debt	52.5		131.8		129.3
Senior Debt	15.7		30.2		29.9
Distressed Debt	18.6		45.2		44.9
Secondary Transactions	5.6		3.7		4.0
Hedge Funds	—		68.1		82.7
Leveraged Buyout	8.3		34.8		32.2
Growth Equity	0.5		4.0		2.0

Total Reported as Other Equity Interests at Fair Value	101.2		317.8		325.0
Reported as Other Equity Interests at Modified Cost:

Other	—		7.6		7.7
Total Reported as Other Equity Interests at Modified Cost	—		7.6		7.7



Total Investments in Limited Liability Companies and Limited Partnerships	$	193.4	$	577.8	$	614.2

Kemper Corporation

Definitions of Non-GAAP Financial Measures

The Company believes that investors’ understanding of Kemper’s performance is enhanced by the disclosure of the following non-GAAP financial measures. The methods for calculating these measures may differ from those used by other companies and therefore comparability may be limited.

Book Value Per Share Excluding Goodwill is a calculation that uses a non-GAAP financial measure. It is calculated by dividing shareholders’ equity excluding goodwill by total Common Shares Issued and Outstanding. Book value per share is the most directly comparable GAAP financial measure. Book Value Per Share Excluding Goodwill is a common measure used by analysts and investors to compare similar companies.

Book Value Per Share Excluding Net Unrealized (Gains) Losses on Fixed Maturities 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. The Company 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. The Company 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. The Company believes it enhances understanding and comparability of performance by highlighting underlying business activity and profitability drivers.

Book Value Per Share Excluding Net Unrealized (Gains) Losses on Fixed Maturities and Goodwill 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 and goodwill by total Common Shares Issued and Outstanding. Book value per share is the most directly comparable GAAP financial measure. The Company uses the trends in book value per share excluding the after-tax impact of net unrealized (gains) losses on fixed income securities and goodwill in conjunction with book value per share to identify and analyze the change in net worth excluding goodwill attributable to management efforts between periods. The Company 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. The Company believes it enhances understanding and comparability of performance by highlighting underlying business activity and profitability drivers.

Adjusted Consolidated Net Operating Income (Loss) 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 the Company excluded from the calculation of Adjusted Consolidated Net Operating Income for the three months ended March 31, 2022 or 2021.

The Company believes that Adjusted Consolidated Net Operating Income 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 the Company’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 Company’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 the Company’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 the Company, 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 Company’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 Company’s businesses.

Kemper Corporation

Definitions of Non-GAAP Financial Measures (continued)

A reconciliation of Net Income (Loss) to Adjusted Consolidated Net Operating Income is presented below:


	Three Months Ended
Dollars in Millions (Unaudited)	Mar 31, 2022		Dec 31, 2021		Sep 30, 2021		Jun 30, 2021		Mar 31, 2021
Net Income (Loss)	$	(94.8)	$	(105.8)	$	(75.3)	$	(62.6)	$	123.2
Less Net Income (Loss) From:
Income (Loss) from Change in Fair Value of Equity and Convertible Securities	(22.3)		17.5		(0.5)		32.3		41.2
Net Realized Gains (Losses) on Sales of Investments	1.2		17.2		7.9		15.2		10.9
Impairment Losses	(7.0)		(2.5)		(0.5)		(2.5)		(3.2)
Acquisition Related Transaction, Integration and Other Costs	(3.7)		(7.2)		(6.4)		(8.2)		(12.9)
Debt Extinguishment, Pension and Other Charges	(2.9)		—		—		—		—
Adjusted Consolidated Net Operating Income (Loss)	$	(60.1)	$	(130.8)	$	(75.8)	$	(99.4)	$	87.2

Adjusted Consolidated Net Operating Income Per Unrestricted Share is a non-GAAP financial measure. It is computed by dividing Adjusted Consolidated Net Operating Income by the weighted average unrestricted shares outstanding. The most directly comparable GAAP financial measure is Net Income (Loss) Per Unrestricted Share ‐ basic. A reconciliation of Net Income (Loss) Per Unrestricted Share-basic to Adjusted Consolidated Net Operating Income (Loss) Per Unrestricted Share-basic is presented below:


	Three Months Ended
(Unaudited)	Mar 31, 2022		Dec 31, 2021		Sep 30, 2021		Jun 30, 2021		Mar 31, 2021
Net Income (Loss) Per Unrestricted Share	$	(1.49)	$	(1.66)	$	(1.18)	$	(0.97)	$	1.88
Less Net Income (Loss) Per Unrestricted Share From:
Income (Loss) from Change in Fair Value of Equity and Convertible Securities	(0.35)		0.27		(0.01)		0.50		0.63
Net Realized Gains (Losses) on Sales of Investments	0.02		0.27		0.13		0.24		0.17
Impairment Losses	(0.11)		(0.04)		(0.01)		(0.04)		(0.05)
Acquisition Related Transaction and Integration Costs	(0.06)		(0.11)		(0.10)		(0.13)		(0.20)
Debt Extinguishment, Pension and Other Charges	(0.05)		—		—		—		—
Adjusted Consolidated Net Operating Income (Loss) Per Unrestricted Share	$	(0.94)	$	(2.05)	$	(1.19)	$	(1.54)	$	1.33

Underlying Combined Ratio 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.

The Company believes Underlying Losses and LAE and the Underlying Combined Ratio are useful to investors and uses these financial measures to reveal the trends in the Company’s Property & Casualty Insurance segment that may be obscured by catastrophe losses and prior-year reserve development. These catastrophe losses may cause the Company’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 Company’s insurance products in the current period. The Company believes it is useful for investors to evaluate these components separately and in the aggregate when reviewing the Company’s underwriting performance.

Kemper Corporation

As Adjusted for Acquisitions Non-GAAP Financial Measure

As Adjusted for Acquisitions amounts are non-GAAP financial measures. Subsequent to the applicable acquisitions, the As Adjusted for Acquisitions amounts are computed by subtracting the impact of purchase accounting adjustments from the comparable consolidated GAAP financial measure reported by Kemper. The Company 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.

Kemper Corporation

As Adjusted for Acquisitions - Consolidated Financial Highlights

(Dollars in Millions)

(Unaudited)


	Three Months Ended
	Mar 31, 2022		Dec 31, 2021		Sep 30, 2021		Jun 30, 2021		Mar 31, 2021
Earned Premiums
Kemper - GAAP As Reported	$	1,338.6	$	1,359.1	$	1,356.1	$	1,337.7	$	1,200.8
AAC - Prior to Acquisition	—		—		—		—		87.9
As Adjusted for Acquisitions1	$	1,338.6	$	1,359.1	$	1,356.1	$	1,337.7	$	1,288.7

Adjusted Consolidated Net Operating Income (Loss)
Kemper	$	(60.1)	$	(130.8)	$	(75.8)	$	(99.4)	$	87.2
AAC - Prior to Acquisition	—		—		—		—		12.3
Less: Impact of Purchase Accounting	(3.5)		(4.5)		(6.7)		(10.1)		(1.8)
As Adjusted for Acquisitions1	$	(56.6)	$	(126.3)	$	(69.1)	$	(89.3)	$	101.3
1 As Adjusted for Acquisitions is a non-GAAP financial measure, which is computed by excluding the impact of purchase accounting. See page 36.

Kemper Corporation

Selected Financial Information

As Adjusted for Acquisitions - Specialty Property & Casualty Insurance Segment

(Dollars in Millions)

(Unaudited)


	Three Months Ended
	Mar 31, 2022			Dec 31, 2021			Sep 30, 2021			Jun 30, 2021			Mar 31, 2021
Earned Premiums
Kemper Specialty P&C - GAAP As Reported	$	1,021.6		$	1,032.3		$	1,028.3		$	1,010.3		$	877.6
AAC - Prior to Acquisition	—			—			—			—			87.9
As Adjusted for Acquisitions1	$	1,021.6		$	1,032.3		$	1,028.3		$	1,010.3		$	965.5

Current Year Non-CAT Losses and LAE
Kemper Specialty P&C - GAAP As Reported	$	911.7		$	1,028.5		$	924.4		$	877.4		$	650.0
AAC - Prior to Acquisition	—			—			—			—			62.0
Less: Impact of Purchase Accounting
Amortization of Fair Value Adjustment to Unpaid Loss and LAE	0.3			0.2			0.3			0.3			0.4
As Adjusted for Acquisitions1	$	911.4		$	1,028.3		$	924.1		$	877.1		$	711.6

Insurance Expenses
Kemper Specialty P&C - GAAP As Reported	$	199.3		$	204.4		$	194.2		$	205.6		$	170.3
AAC - Prior to Acquisition	—			—			—			—			13.1
Less: Impact of Purchase Accounting
Amortization of VOBA	1.4			4.5			12.8			24.8			0.3
Amortization of Estimated Legacy AAC Deferred Policy Acquisition Costs ("DPAC")	(0.8)			(2.8)			(8.4)			(16.0)			—
Amortization of VOBA, Net of Legacy DPAC	0.6			1.7			4.4			8.8			0.3
Amortization of Finite Life Intangible Assets Acquired	3.1			3.1			3.1			3.0			0.9
Other	1.0			1.1			1.1			1.1			1.1
Total Purchase Accounting Adjustments	4.7			5.9			8.6			12.9			2.3

As Adjusted for Acquisitions1	$	194.6		$	198.5		$	185.6		$	192.7		$	181.1

Underlying Combined Ratio1
Kemper Specialty P&C Segment - GAAP As Reported	108.7		%	119.4		%	108.9		%	107.3		%	93.5		%
As Adjusted for Acquisitions1	108.3		%	118.8		%	107.9		%	105.9		%	92.5		%
1 As Adjusted for Acquisitions is a non-GAAP financial measure, which is computed by excluding the impact of purchase accounting. See page 36.

Kemper Corporation

Selected Financial Information

As Adjusted for Acquisitions - Specialty Personal Automobile Insurance

(Dollars in Millions)

(Unaudited)


	Three Months Ended
		Mar 31, 2022			Dec 31, 2021			Sep 30, 2021			Jun 30, 2021			Mar 31, 2021
Earned Premiums
Kemper Specialty Personal Automobile Insurance - GAAP As Reported		$	901.7		$	918.1		$	920.6		$	909.6		$	785.4
AAC - Prior to Acquisition		—			—			—			—			87.9
As Adjusted for Acquisitions1		$	901.7		$	918.1		$	920.6		$	909.6		$	873.3

Current Year Non-CAT Losses and LAE
Kemper Specialty Personal Automobile Insurance - GAAP As Reported		$	827.7		$	938.5		$	843.9		$	805.1		$	586.4
AAC - Prior to Acquisition		—			—			—			—			62.0
Less: Impact of Purchase Accounting
Amortization of Fair Value Adjustment to Unpaid Loss and LAE		0.3			0.2			0.3			0.2			0.3
As Adjusted for Acquisitions1		$	827.4		$	938.3		$	843.6		$	804.9		$	648.1

Insurance Expenses
Kemper Specialty Personal Automobile Insurance - GAAP As Reported		$	177.3		$	184.3		$	176.0		$	187.7		$	155.3
AAC - Prior to Acquisition		—			—			—			—			13.1
Less: Impact of Purchase Accounting
Amortization of VOBA		1.4			4.4			12.8			24.7			0.2
Amortization of Estimated Legacy AAC Deferred Policy Acquisition Costs ("DPAC")		(0.8)			(2.8)			(8.4)			(16.0)			—
Amortization of VOBA, Net of Legacy DPAC		0.6			1.6			4.4			8.7			0.2
Amortization of Finite Life Intangible Assets Acquired		2.9			3.0			2.9			2.8			0.7
Other		0.8			0.9			0.8			0.9			0.9
Total Purchase Accounting Adjustments		4.3			5.5			8.1			12.4			1.8

As Adjusted for Acquisitions1		$	173.0		$	178.8		$	167.9		$	175.3		$	166.6

Underlying Combined Ratio1
Kemper Specialty Personal Automobile Insurance - GAAP As Reported		111.5		%	122.3		%	110.8		%	109.1		%	94.5		%
As Adjusted for Acquisitions1		110.9		%	121.7		%	109.9		%	107.8		%	93.3		%
1 As Adjusted for Acquisitions is a non-GAAP financial measure, which is computed by excluding the impact of purchase accounting. See page 36.

Earnings Call Presentation – 1Q 2022 First Quarter 2022 Earnings May 2, 2022

Earnings Call Presentation – 1Q 2022 Cautionary Statements Regarding Forward-Looking Information This presentation 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 presentation, including any such statements related to the Pandemic. Non-GAAP Financial Measures This presentation contains non-GAAP financial measures that the company believes are meaningful to investors. Non-GAAP financial measures have been reconciled to the most comparable GAAP financial measure. Preliminary Matters 2

Earnings Call Presentation – 1Q 2022 Deliver low double-digit ROE2 over time Create Long-Term Shareholder Value Leverage competitive advantages to grow returns and BVPS1 over time ¹ Book value per share 2 Return on equity Sustainable competitive advantages and build core capabilities Grow returns and book value per share over time Diversified sources of earnings; Strong capital/liquidity positions; Disciplined approach to capital management Consumer-related businesses with opportunities that: • Target specialty markets • Have limited, weak or unfocused competition • Require unique expertise (underwriting, claim, distribution, analytics and other) Strategic focus: 3

Earnings Call Presentation – 1Q 2022 First Quarter 2022 Highlights ¹ Non-GAAP financial measure; please see reconciliation in appendix on pages 19-28 2 Return on average shareholders’ equity (5-point average) 3 As adjusted for acquisition; see reconciliation on Pages 25-28 4 Auto margins improved despite persistent environmental challenges Environmental challenges continued to impact segments of the insurance market • Broad market inflation due to supply chain issues and labor shortages continue to drive up loss costs • Geopolitical and inflationary concerns negatively impacted financial asset valuations Macroeconomic Environment Restoration actions taking hold; continue to aggressively pursue all improvement opportunities • Initiatives more than offset environmental headwinds; rate taking activity exceeded expectations • Specialty P&C Personal Auto rate actions: Filed an additional 8% rate increase on 59% of the book • Preferred P&C Personal Auto rate actions: Filed an additional 12% rate increase on 69% of the book, ongoing repositioning of the book to improve profitability Actions Taken Significant sequential improvement in results; auto underlying combined ratio improved 11pts, auto frequency below 2019 levels • Net loss of $95 million ($1.49) per share, as reported, or $91 million ($1.43) per share, as adjusted3 • Adjusted consolidated net operating loss1 of $60 million ($0.94) per share, as reported, or $57 million ($0.89) per share, as adjusted3 • (9)% ROAE2, (14)% ROAE2 excluding net unrealized (gain) loss on fixed maturities and goodwill1 1st Quarter Results Strong capital and liquidity enable us to navigate environmental challenges • Holding company remains a source of strength for subsidiaries, with more than $1.2B of liquidity • 1Q debt offerings at attractive rates provide additional flexibility and diversifies capital structure Balance Sheet Strength

Earnings Call Presentation – 1Q 2022 Focus on restoring profitability and positioning businesses for growth First Quarter Financial Highlights As Reported As Adjusted1 Quarter Ended Quarter Ended (Dollars in millions, except per share amounts) Mar 31, 2022 Mar 31, 2021 Mar 31, 2022 Mar 31, 2021 Net Income (Loss) – Per Diluted Share $(1.49) $1.85 $(1.43) $1.97 Adj. Consolidated Net Op. Income (Loss) – Per Diluted Share1 $(0.94) $1.31 $(0.89) $1.52 Tangible Book Value Per Common Share excluding unrealized gains1 $32.86 $42.87 Return on Avg. Tangible Common Equity1 (14.4)% 18.1% Dividend Paid to Shareholders Per Share $0.31 $0.31 Life Face Value of In-Force Growth 2.1% 1.6% Specialty PIF growth 12.0% 0.1% (0.9)% 0.1% 5 AAC goodwill diluted TBVPS by $3.11 ¹ As adjusted for acquisition; see reconciliation on Pages 25-28 Key business metrics improving, but still impacted by environmental challenges

Earnings Call Presentation – 1Q 2022 Use of proceeds: • Redeemed $275M Infinity 5.00% Senior Notes due September 20221 • Incremental working capital First Quarter Debt Offerings 6 Actions taken provide additional flexibility with no near-term maturities Refinanced 2022 maturity and diversified capital structure at attractive rates 1Q22 debt offerings: • Raised $400M of 3.80% Senior Notes due in 2032 • Raised $150M of 5.875% Fixed Rate Reset Junior Subordinated Debentures due in 2062 • Upsized credit facility from $400M to $600M Highlights Note 1: Infinity Property and Casualty Corporation is a subsidiary of Kemper. Infinity’s liabilities at the acquisition date included $275.0 million principal amount, 5.000% Senior Notes due September 19, 2022; notes were redeemed on March 25th. Debt Maturity

Earnings Call Presentation – 1Q 2022 27.6% 21.9% 23.0% 16.4% 20.4% 21.9% 29.0% 2016 2017 2018 2019 2020 2021 1Q22 Debt-to-Capital <30% Strong Balance Sheet with Well-Funded Insurance Entities Significant capital and liquidity positions Debt Cash Flow from Operating Activities $2.7B $4.8B$4.0B$2.7B Total Capitalization Parent Company Liquidity Risk-Based Capital Ratios¹ $299 $197 $101 $207 $733 $234 $318 $385 $385 $540 $660 $700 $704 $903 2016 2017 2018 2019 2020 2021 1Q22 Borrowings Available Under Credit Agreement & from Subs HoldCo Cash & Investments (M M ) 415 430 410 355 340 355 385335 290 285 365 330 220 240 2016 2017 2018 2019 2020 2021 1Q22 Life & Health P&C (ex. AU & AACC) (% ) $684 $867 $641$582 (M M ) $241 $241 $539 $534 $448 $351 $192 2016 2017 2018 2019 2020 2021 1Q22 TTM $1,433 $5.7B Well-positioned to navigate the uncertain environment and position businesses for success $5.1B 7 $938 ¹ The 1Q22 Risk-Based Capital Ratios are calculated at the Company Action Level and are estimated. Actual RBC levels are likely to differ materially from these estimates, as they will be affected by numerous market inputs, none of which will be known prior to March 31, 2022. $4.8B $1,221

Earnings Call Presentation – 1Q 2022 4.5% 5.0% 4.4% 4.6% 4.2% 1Q21 2Q21 3Q21 4Q21 1Q22 54% 18% 6% 4% 6% 2% 10% Other States/ Munis 68% 27% 4% 1% Diversified & Highly-Rated Portfolio Fixed Maturity Ratings $7.8 Billion A or Higher ≤ CCC B / BB BBB Diversified Investment Portfolio with Consistent Returns Note: Charts may not balance due to rounding ¹ Equity securities excludes $325 million of Other Equity Interests of LP/LLC’s that have been reclassified into Alternative Investments • 4.2% PTE annualized book yield • New investment yields up ~100 bps relative to prior-year • The quality of our Fixed Maturity portfolio remains very high • Investment exposure to Russia is less than $1.5M $76 $82 $80 $85 $79 $27 $32 $22 $23 $21 1Q21 2Q21 3Q21 4Q21 1Q22 Core Portfolio Alternative Inv. Portfolio Net Investment Income¹ (M M ) $103 $100 $108$102 $114 Overview Corporates Short-term Alternatives¹ U.S. Gov’t Portfolio Composition Pre-Tax Equiv. Annualized Book Yield $10.0 Billion 8 Equity¹

Earnings Call Presentation – 1Q 2022 92.5 105.9 107.9 118.8 108.3 1Q21 2Q21 3Q21 4Q21 1Q22 Underlying Combined Ratio¹ QTD Specialty Property & Casualty Insurance Segment1 Significant sequential quarter-over-quarter combined ratio improvement ¹ As adjusted for acquisition; see reconciliation on Pages 25-28; 2 Non-GAAP financial measure; see reconciliation in appendix on pages 19-28; excludes impact of purchase accounting 3 Represents the percent of total book impacted in the quarter and the weighted average rate of actual filings; 4 Period rate goes into effect (% ) Highlights Profit improvement actions taking hold, more than offsetting inflation Rate Actions3 Overall Impact Filed Effective4 Written Earned % Prem Impacted Wtd Avg Rate % Prem Impacted Wtd Avg Rate Cumulative Impact on Specialty Personal Auto Book 4Q 2021 57% 8% 37% 9% 3.6% 0.3% 1Q 2022 59% 8% 21% 10% 6.1% 1.0% 2Q 2022 ~9% ~5% ~10% ~7% ~7.8% ~2.3% 9 • Profit restoration actions led to a significant improvement in underlying combined ratio • Frequency remained below 2019 levels • Broad-based inflation continued to pressure severity despite moderation in used car prices • 1Q22 rate actions exceeded projections Metrics ($ in millions) 1Q22 1Q21 Change vs 1Q21 Earned Premiums2 $1,022 $966 5.8% Underlying Loss & LAE Ratio2 89.2% 73.7% 15.5pts Underlying Expense Ratio2 19.1% 18.8% 0.3pts Policies In-Force (000) 2,146 2,165 (0.9%) Specialty PPA (Rate Change Activity Since 2Q21) -11 pts

Earnings Call Presentation – 1Q 2022 Preferred Property & Casualty Insurance Segment Profitability actions taking hold Highlights 97.6 111.3 114.6 127.1 116.3 78.8 89.1 81.5 73.7 86.7 1Q21 2Q21 3Q21 4Q21 1Q22 Underlying Combined Ratio¹ Auto Home & Other Focus remains on profitability improvement and inflation mitigation ¹ Non-GAAP financial measure; please see reconciliation in appendix on pages 19-28 2 Represents the percent of total book impacted in the quarter and the weighted average rate of actual filings; 3 Period rate goes into effect • Performance improved sequentially • Margins continued to be impacted by environmental pressures • Filed rate actions increased in 1Q22 and outpaced projections • Repositioning and focus to core states continues (% ) 10 Metrics ($ in millions) 1Q22 1Q21 Change vs 1Q21 Auto Earned Premiums $96 $103 (6.8)% Policies In-Force (000) 195 215 (9.3)% Home & Other Earned Premiums $60 $59 1.7% Policies In-Force (000) 204 210 (2.9)% Rate Actions2 Overall Impact Filed Effective3 Written Earned % Prem Impacted Wtd Avg Rate % Prem Impacted Wtd Avg Rate Cumulative Impact on Preferred Personal Auto Book 4Q 2021 23% 12% 21% 6% 2.9% 0.1% 1Q 2022 69% 12% 17% 13% 5.2% 0.6% 2Q 2022 ~6% ~11% ~17% ~9% ~5.9% ~1.3% Preferred Personal Auto (Rate Change Activity Since 2Q21) -11 pts

Earnings Call Presentation – 1Q 2022 Life & Health Insurance Segment In line with national mortality trends, Pandemic continued to impact operating income Note: Chart may not balance due to rounding ¹ Excludes other income and solar credit impairment (M M ) • Life Earned Premium increased by $3.2 million or 3.3% in Q122 to $101.3 million • Persistency increased over pre-Pandemic levels (2017-2019) • Annualized Life new business sales remain above historical levels • Business to benefit from improved interest rate environment Highlights $161 $164 $164 $164 $161 $51 $52 $48 $51 $49 1Q21 2Q21 3Q21 4Q21 1Q22 Revenues1 Earned Premiums Net Investment Income $210$213$217$212 $215 Profitability expected to materially improve as mortality normalizes 11 Metrics ($ in millions except per policy amounts) 1Q22 1Q21 Change vs 1Q21 L&H Net Operating Income $3 $7 (57.1)% Life Face Value of In-Force $20,473 $20,046 2.1% Avg. Face per Policy $6,238 $5,998 4.0% Avg. Premium per Policy Issued $559 $494 13.2%

Earnings Call Presentation – 1Q 2022 Appendix 12

Earnings Call Presentation – 1Q 2022 ….to create value for all our stakeholders A Leading Specialized Insurer Taking advantage of a diversified portfolio of niche businesses…. Founded in 1990 and headquartered in Chicago, with subsidiaries writing policies since 1911 ~6.4M Policies ~35,500 Agents/Brokers ~10,400 Employees Preferred personal lines insurance providing preferred automobile, homeowners and other personal insurance products ~$15B Assets Specialty P&C insurance providing personal and commercial automobile insurance products Life and health insurance providing life, supplemental benefits, and other property insurance products 13

Earnings Call Presentation – 1Q 2022 14 Inflationary Pressures Remain Persistent • Insurers continue to face increased auto body work prices due to labor shortage and supply chain issues • Auto body work prices rose by 3.4% from last quarter; up 12.4% YoY • Used car and truck prices rose 35% over the past year; pace of increase slowed compared to last quarter • Medical care costs increased 1.8% from last quarter; up 2.9% YoY Source: U.S. Bureau of Labor Statistics. Inflation trends continue to be dynamic and trending upward Subcomponents of inflation continue to disproportionately impact insurers, driving up loss costs 90 100 110 120 130 140 150 160 J F M A M J J A S O N D J F M A M J J A S O N D J F M 2020 2021 2022 Motor Vehicle Body Work Used Car & Truck Medical Care Core CPI 152 109 106 117 Price Indices (Indexed to Q418) Slowdown of used car prices Continued increases to Motor Vehicle Body Work Steady increase in medical care inflation

Earnings Call Presentation – 1Q 2022 Capital Deployment Priorities Dedicated to being good stewards of capital Management and capital deployment priorities focused on maximizing shareholder value 1. Investment in the business • Fund profitable organic growth at appropriate risk-adjusted returns • Strategic investments and acquisitions that enhance the business and meet or exceed our ROE targets over time 2. Return capital to shareholders • Repurchase shares opportunistically • Maintain competitive dividends 15

Earnings Call Presentation – 1Q 2022 Solar Energy Investment: In Line with Environmental Impact Goals $100 million commitment to solar energy investment generating attractive returns 16 • In conjunction with Sunrun, invested in a diversified group of residential solar energy projects • Opportunity to provide renewable energy solutions for homeowners that benefits the environment • Expect to earn an attractive return that will primarily be recognized as tax credits / deductions as well as operating cash flows - Due to tax profile of transaction, this investment needs to be evaluated on after-tax basis • Majority of financial benefits will be recognized over the next two years - Will reduce our Effective Tax Rate over next two years - Largest impact is expected to have taken place in 1Q21 Reporting on Income Statement Line Items Continue to optimize our capital management through investments with attractive returns and cash flows Key Metrics ($ in millions, except per share data) 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 Cumulative Revenue Reduction $ -- $15.4 $7.7 $23.8 $14.3 $16.7 $77.90 Per Share $ -- $(0.23) $(0.12) $(0.37) $(0.22) $(0.26) $(1.20) Tax Credit / Deductions $3.2 $28.6 $8.6 $30.6 $11.2 $7.0 $89.2 Per Share $0.05 $0.43 $0.13 $0.48 $0.18 $0.11 $1.38 Net Benefit (Loss) $3.2 $13.2 $0.9 $6.8 $(3.1) $(9.7) $11.30 Per Share $0.05 $0.20 $0.01 $0.11 $(0.05) $(0.15) $0.17

Earnings Call Presentation – 1Q 2022 2022 Reinsurance Program Renewed programs and upsized our catastrophe reinsurance program • Policy placed at 1/1/22 upsized relative to prior four years - New limit aligned with risk-appetite to cover 1-in-200 occurrence - Minimizes rating agency cost of capital • Total coverage: 95% of $300 million in excess of $50 million Catastrophe Reinsurance Program (Multi-Year) • Increased retention vs. 2021 program – Intended to reduce volatility from high- frequency, low severity events • Coverage – $50 million in excess of $65 million – $500K deductible per storm – Perils: All perils, excluding named storms (e.g., hurricanes) and earthquakes – Covered Line: Property, Fire and Dwelling Aggregate Catastrophe Program 2022 Aggregate Catastrophe Reinsurance Program 17

Earnings Call Presentation – 1Q 2022 Earned impact of profit improvement actions will continue to increase throughout 2022 Net Operating Income Review ¹ Non-GAAP financial measure; see reconciliation in appendix pages 19-28 Financial results continue to be pressured by environmental challenges 18 Three Months Ended, As Reported Mar. 31, Dec. 31, Sep. 30, Jun. 30, Mar. 31, Variance Dollars per Unrestricted Share - Diluted 2022 2021 2021 2021 2021 YoY Net Income (Loss) (1.49)$ (1.66)$ (1.18)$ (0.97)$ 1.85$ (3.34) (Income) Loss from Change in FV of Equity & Convertible Securities 0.35 (0.27) 0.01 (0.50) (0.62) 0.97 Investment Related (Gains)/Losses (0.02) (0.27) (0.13) (0.24) (0.16) 0.14 Net Impairment Losses 0.11 0.04 0.01 0.04 0.05 0.06 Acquisition Related Transaction, Integration & Other Costs 0.06 0.11 0.10 0.13 0.19 (0.13) Debt Extinguishment, Pension and Other Charges 0.05 - - - - - Adj. Consolidated Net Operating Income (Loss)1 (0.94) (2.05) (1.19) (1.54) 1.31 (2.30) Sources of Volatility: Income (Loss) After-Tax From: Catastrophes (0.17) (0.16) (0.40) (0.43) (0.33) 0.16 - - Solar Investment (0.15) (0.05) 0.11 0.01 0.20 (0.35) Prior-year Reserve Development 0.03 0.01 (0.31) (1.01) - 0.03 - Alternative Investment Income 0.26 0.29 0.27 0.38 0.32 (0.06) - Impact of Purchase Accounting (0.06) (0.07) (0.10) (0.15) (0.03) (0.03) Total from Sources of Volatility (0.09)$ 0.02$ (0.43)$ (1.20)$ 0.16$ (0.25)$

Earnings Call Presentation – 1Q 2022 Book Value Per Share Excluding Net Unrealized Gains on Fixed Maturities is a ratio that uses a non-GAAP financial measure. It is calculated by dividing shareholders’ equity after excluding the after-tax impact of net unrealized gains on fixed income securities by total Common Shares Issued and Outstanding. Book value per share is the most directly comparable GAAP financial measure. The Company uses the trend in book value per share, excluding the after-tax impact of net unrealized gains 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. The Company 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 generally not influenced by management. The Company believes it enhances understanding and comparability of performance by highlighting underlying business activity and profitability drivers. Book Value Per Share Excluding Net Unrealized Gains on Fixed Maturities and Goodwill 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 on fixed income securities and goodwill by total Common Shares Issued and Outstanding. Book value per share is the most directly comparable GAAP financial measure. The Company uses the trends in book value per share excluding the after-tax impact of net unrealized gains on fixed income securities and goodwill in conjunction with book value per share to identify and analyze the change in net worth excluding goodwill attributable to management efforts between periods. The Company 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. The Company believes it enhances understanding and comparability of performance by highlighting underlying business activity and profitability drivers. Non-GAAP Financial Measures 19 1Q'22 2021 2020 2019 2018 2017 2016 Book Value Per Share 53.21$ 62.93$ 69.74$ 59.59$ 47.10$ 41.11$ 38.52$ Less: Net Unrealized (Gains) Losses on Fixed Maturities Per Share 0.21 (7.89) (11.07) (6.51) (1.70) (5.54) (3.52) Book Value Per Share Excluding Net Unrealized (Gains) Losses on Fixed Maturities 53.42$ 55.04$ 58.67$ 53.08$ 45.40$ 35.57$ 35.00$ Less: Goodwill (20.56) (20.60) (17.02) (16.72) (17.18) (6.28) (6.30) Book Value Per Share Excluding Net Unrealized (Gains) Losses on Fixed Maturities and Goodwill 32.86$ 34.44$ 41.65$ 36.36$ 28.22$ 29.29$ 28.70$ For the Periods Ended

Earnings Call Presentation – 1Q 2022 Return on Equity Non-GAAP Financial Measures 20 1Q'22 2021 2020 2019 2018 2017 2016 Rolling 12 Month Return on Average Shareholders' Equity (5 Point Avg) (8.4)% (2.8)% 9.8% 14.8% 7.7% 5.9% 0.8% Less: Net Unrealized (Gains) Losses on Fixed Maturities (0.9)% (0.4)% 1.5% 1.5% 0.6% 0.7% 0.1% Rolling 12 Month Return on Average Shareholders’ Equity Excluding Net Unrealized (Gains) Losses on Fixed Maturities (5 Point Avg) (9.3)% (3.2)% 11.3% 16.3% 8.3% 6.6% 0.9% Excluding: Net Unrealized (Gains) Losses on Fixed Maturities (5 Point Avg) (5.1)% (1.7)% 5.0% 8.4% 3.1% 1.4% 0.2% Excluding: Net Unrealized (Gains) Losses on Fixed Maturities and Goodwill (5 Point Avg) (14.4)% (4.9)% 16.3% 24.7% 11.4% 8.0% 1.1% For the Periods Ended

Earnings Call Presentation – 1Q 2022 Kemper believes that Adjusted Consolidated Net Operating Income (Loss) 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 on Sales of Investments and Impairment Losses related to investments included in the Company’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 Company’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 the Company’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 are made by the Company, 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 Company’s business or economic trends. Non-GAAP Financial Measures 21

Earnings Call Presentation – 1Q 2022 Diluted Adjusted Consolidated Net Operating Income (Loss) Per Unrestricted Share is a non-GAAP financial measure computed by dividing Adjusted Consolidated Net Operating Income (Loss) 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. Kemper believes that Diluted Adjusted Consolidated Net Operating Income (Loss) Per Unrestricted Share 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 from change in fair value of equity and convertible securities, net realized gains on sales of investments, impairment losses related to investments, acquisition related transaction, integration and other costs and loss from early extinguishment of debt 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 company’s investments, the timing of which is unrelated to the insurance underwriting process. Non-GAAP Financial Measures 22 Per Unrestricted Share 1Q22 4Q21 3Q21 2Q21 1Q21 Net Income (Loss) - Diluted (1.49)$ (1.66)$ (1.18)$ (0.97)$ 1.85$ Net (Income) Loss From: Change in Fair Value of Equity & Convertible Securities 0.35 (0.27) 0.01 (0.50) (0.62) Net Realized Gains on Sales of Investments (0.02) (0.27) (0.13) (0.24) (0.16) Impairment Losses 0.11 0.04 0.01 0.04 0.05 Acquisition Related Transaction, Integration and Other Costs 0.06 0.11 0.10 0.13 0.19 Debt Extinguishment, pension and other charges 0.05 - - - - Adj. Consolidated Net Operating Income (Loss) - Diluted (0.94)$ (2.05)$ (1.19)$ (1.54)$ 1.31$ For the Three Months Ended

Earnings Call Presentation – 1Q 2022 Underlying Combined Ratio 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, including the impact of catastrophe losses and loss and LAE reserve development from prior years, with the Insurance Expense Ratio. The Company believes the underlying combined ratio is useful to investors and is used by management to reveal the trends in the Company’s property and casualty insurance businesses that may be obscured by catastrophe losses and prior-year reserve development. These catastrophe losses cause loss trends to vary significantly between periods as a result of their incidence of occurrence and magnitude, and can have a significant impact on 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 our insurance products in the current period. The Company believes it is useful for investors to evaluate these components separately and in the aggregate when reviewing the Company’s underwriting performance. The underlying combined ratio should not be considered a substitute for the combined ratio and does not reflect the overall underwriting profitability of our business. Non-GAAP Financial Measures 23

Earnings Call Presentation – 1Q 2022 Underlying Combined Ratio – Continued Non-GAAP Financial Measures 24 1Q22 4Q21 3Q21 2Q21 1Q21 Specialty P&C Insurance Combined Ratio as Reported 108.6% 118.9% 111.6% 116.1% 93.5% Current Year Catastrophe Loss and LAE Ratio (0.2)% (0.2)% (0.3)% (0.8)% (0.2)% Prior Years Non-Catastrophe Losses and LAE 0.4% 0.7% (2.4)% (8.0)% 0.2% Prior Years Catastrophe Losses and LAE Ratio (0.1)% 0.0% 0.0% 0.0% 0.0% Underlying Combined Ratio 108.7% 119.4% 108.9% 107.3% 93.5% Preferred P&C Insurance Combined Ratio as Reported 111.6% 115.5% 116.6% 118.9% 105.4% Current Year Catastrophe Loss and LAE Ratio (7.3)% (4.6)% (14.3)% (14.8)% (14.8)% Prior Years Non-Catastrophe Losses and LAE (1.3)% (5.2)% 0.0% (3.1)% (0.1)% Prior Years Catastrophe Losses and LAE Ratio 2.1% 1.2% (0.1)% 2.1% 0.2% Underlying Combined Ratio 105.1% 106.9% 102.2% 103.1% 90.7% Preferred Auto Combined Ratio as Reported 118.5% 135.5% 117.4% 117.3% 99.5% Current Year Catastrophe Loss and LAE Ratio (0.5)% (1.3)% (2.6)% (2.7)% (0.6)% Prior Years Non-Catastrophe Losses and LAE (1.6)% (7.2)% (0.1)% (3.5)% (1.2)% Prior Years Catastrophe Losses and LAE Ratio (0.1)% 0.1% (0.1)% 0.2% (0.1)% Underlying Combined Ratio 116.3% 127.1% 114.6% 111.3% 97.6% Preferred Home & Other Combined Ratio as Reported 100.5% 82.5% 115.2% 121.8% 115.7% Current Year Catastrophe Loss and LAE Ratio (18.3)% (10.1)% (33.9)% (35.8)% (39.5)% Prior Years Non-Catastrophe Losses and LAE (1.0)% (1.8)% 0.2% (2.3)% 1.9% Prior Years Catastrophe Losses and LAE Ratio 5.5% 3.1% 0.0% 5.4% 0.7% Underlying Combined Ratio 86.7% 73.7% 81.5% 89.1% 78.8%

Earnings Call Presentation – 1Q 2022 As Adjusted for Acquisition amounts are non-GAAP financial measures. Subsequent to the applicable acquisitions, the As Adjusted for Acquisitions amounts are computed by subtracting the impact of purchase accounting adjustments from the comparable consolidated GAAP financial measure reported by Kemper. The Company 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. Non-GAAP Financial Measures 25

Earnings Call Presentation – 1Q 2022 As Adjusted for Acquisition – Continued Non-GAAP Financial Measures ¹ As Adjusted is a non-GAAP measure, which is comprised by excluding impact of purchase accounting in 2021 and 2022 and including historical results of Kemper and AAC in periods prior to acquisition date of April 1, 2021. 26 ($ in millions, except per share data) 31-Mar-22 31-Dec-21 30-Sep-21 30-Jun-21 31-Mar-21 Earned Premiums Kemper - GAAP As Reported 1,338.6$ 1,359.1$ 1,356.1$ 1,337.7$ 1,200.8$ AAC - Prior to Acquisition - - - - 87.9 As Adjusted 1 1,338.6$ 1,359.1$ 1,356.1$ 1,337.7$ 1,288.7$ Net Income (Loss) Kemper - GAAP As Reported (94.8)$ (105.8)$ (75.3)$ (62.6)$ 123.2$ AAC - Prior to Acquisition - - - - 6.1 Less: Impact of Purchase Accounting (3.5) (4.5) (6.7) (10.1) (1.8) As Adjusted 1 (91.3)$ (101.3)$ (68.6)$ (52.5)$ 131.1$ As Adjusted 1 - Per Diluted Share (1.43)$ (1.59)$ (1.08)$ (0.82)$ 1.97$ Adjusted Consolidated Net Operating Income (Loss) Kemper - GAAP As Reported (60.1)$ (130.8)$ (75.8)$ (99.4)$ 87.2$ AAC - Prior to Acquisition - - - - 12.3 Less: Impact of Purchase Accounting (3.5) (4.5) (6.7) (10.1) (1.8) As Adjusted 1 (56.6)$ (126.3)$ (69.1)$ (89.3)$ 101.3$ As Adjusted 1 - Per Diluted Share (0.89)$ (1.98)$ (1.08)$ (1.39)$ 1.52$ Three Months Ended

Earnings Call Presentation – 1Q 2022 As Adjusted for Acquisition – Continued Non-GAAP Financial Measures ¹ As Adjusted is a non-GAAP measure, which is comprised by excluding impact of purchase accounting in 2021 and 2022 and including historical results of Kemper and AAC in periods prior to acquisition date of April 1, 2021. 27 Specialty P&C Insurance Segment ($ in millions) 31-Mar-22 31-Dec-21 30-Sep-21 30-Jun-21 31-Mar-21 Earned Premiums Kemper Specialty P&C - GAAP As Reported 1,021.6$ 1,032.3$ 1,028.3$ 1,010.3$ 877.6$ AAC - Prior to Acquisition - - - - 87.9 As Adjusted 1 1,021.6$ 1,032.3$ 1,028.3$ 1,010.3$ 965.5$ Current Year Non-CAT Losses and LAE Kemper Specialty P&C - GAAP As Reported 911.7$ 1,028.5$ 924.4$ 877.4$ 650.0$ AAC - Prior to Acquisition - - - - 62.0 Less: Impact of Purchase Accounting Amortization of Fair Value Adjustment to Unpaid Loss and LAE 0.3 0.2 0.3 0.3 0.4 As Adjusted 1 911.4$ 1,028.3$ 924.1$ 877.1$ 711.6$ Insurance Expenses Kemper Specialty P&C - GAAP As Reported 199.3$ 204.4$ 194.2$ 205.6$ 170.3$ AAC - Prior to Acquisition - - - - 13.1 Less: Impact of Purchase Accounting 4.7 5.9 8.6 12.9 2.3 As Adjusted 1 194.6$ 198.5$ 185.6$ 192.7$ 181.1$ As Adjusted 1 Underlying Combined Ratio As Adjusted 1 Underlying Loss & LAE Ratio 89.2% 99.6% 89.9% 86.8% 73.7% As Adjusted 1 Expense Ratio 19.1% 19.2% 18.0% 19.2% 18.8% As Adjusted 1 Underlying Combined Ratio 108.3% 118.8% 107.9% 105.9% 92.5% Three Months Ended

Earnings Call Presentation – 1Q 2022 As Adjusted for Acquisition – Continued Non-GAAP Financial Measures ¹ As Adjusted is a non-GAAP measure, which is comprised by excluding impact of purchase accounting in 2021 and 2022 and including historical results of Kemper and AAC in periods prior to acquisition date of April 1, 2021. 28 Specialty Personal Automobile Insurance ($ in millions) 31-Mar-22 31-Dec-21 30-Sep-21 30-Jun-21 31-Mar-21 Earned Premiums Kemper Specialty P&C - GAAP As Reported 901.7$ 918.1$ 920.6$ 909.6$ 785.4$ AAC - Prior to Acquisition - - - - 87.9 As Adjusted 1 901.7$ 918.1$ 920.6$ 909.6$ 873.3$ Current Year Non-CAT Losses and LAE Kemper Specialty P&C - GAAP As Reported 827.7$ 938.5$ 843.9$ 805.1$ 586.4$ AAC - Prior to Acquisition - - - - 62.0 Less: Impact of Purchase Accounting Amortization of Fair Value Adjustment to Unpaid Loss and LAE 0.3 0.2 0.3 0.2 0.3 As Adjusted 1 827.4$ 938.3$ 843.6$ 804.9$ 648.1$ Insurance Expenses Kemper Specialty P&C - GAAP As Reported 177.3$ 184.3$ 176.0$ 187.7$ 155.3$ AAC - Prior to Acquisition - - - - 13.1 Less: Impact of Purchase Accounting 4.3 5.5 8.1 12.4 1.8 As Adjusted 1 173.0$ 178.8$ 167.9$ 175.3$ 166.6$ As Adjusted 1 Underlying Combined Ratio As Adjusted 1 Underlying Loss & LAE Ratio 91.8% 102.2% 91.6% 88.5% 74.2% As Adjusted 1 Expense Ratio 19.2% 19.5% 18.2% 19.3% 19.1% As Adjusted 1 Underlying Combined Ratio 110.9% 121.7% 109.9% 107.8% 93.3% Three Months Ended

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