Form 8-K - Current report

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): October 30, 2023

Kemper Corporation

(Exact name of registrant as specified in its charter)

Commission File Number: 001-18298



DE						95-4255452
(State or other jurisdiction of incorporation)						(IRS Employer Identification No.)

200 E. Randolph Street, Suite 3300, Chicago, IL 60601

(Address of principal executive offices, including zip code)

312-661-4600

(Registrant’s telephone number, including area code)

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the Registrant under any of the following provisions (see General Instruction A.2.below):


☐			Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)


☐			Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)


☐			Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))


☐			Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, par value $0.10 per share	KMPR	NYSE
5.875% Fixed-Rate Reset Junior Subordinated Debentures due 2062	KMPB	NYSE

Indicate by check mark whether the registrant is an emerging growth company as defined in as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).


			Emerging Growth Company			☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition

period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of

the Exchange Act. ¨

Section 2. – Financial Information


Item 2.02.			Results of Operations and Financial Condition.

On October 30, 2023, Kemper Corporation ("Kemper" or the "Registrant") issued a press release announcing its financial results for the third quarter of 2023 and the availability of Kemper’s third quarter investor supplement and earnings call presentation on its website, kemper.com. The press release, the investor supplement and the earnings call presentation are furnished as Exhibits 99.1, 99.2 and 99.3, respectively, to this report.

Section 9. – Financial Statements and Exhibits.


Item 9.01.			Financial Statements and Exhibits.

(d) Exhibits

99.1 Registrant’s press release dated October 30, 2023.

99.2 Third Quarter 2023 Investor Supplement of Kemper Corporation.

99.3 Third Quarter 2023 Earnings Call Presentation.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Kemper Corporation

Date:

October 30, 2023

/s/ BRADLEY T. CAMDEN

Bradley T. Camden

Senior Vice President and Interim Chief Financial Officer

Exhibit 99.1


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



Press Release

Kemper Reports Third Quarter 2023 Operating Results*

CHICAGO, October 30, 2023 — Kemper Corporation (NYSE: KMPR) reported a net loss of $146.3 million, or $(2.28) per share, for the third quarter of 2023, compared to a net loss of $74.8 million, or $(1.17) per share, for the third quarter of 2022. Net loss for the third quarter 2023 included a $55.5 million after-tax non-cash charge related to the termination of Kemper’s remaining pension plan obligations, which was previously included within accumulated other comprehensive income (AOCI) and $22.9 million of after-tax net realized losses on investments.

Adjusted Consolidated Net Operating Loss1 was $27.9 million, or $(0.44) per share, for the third quarter of 2023, compared to Adjusted Consolidated Net Operating Loss1,2 of $27.0 million, or $(0.43) per share, for the third quarter of 2022.

Key themes of the quarter include:

•Specialty Auto Underlying Combined Ratio improved 1.5 points, sequentially

•Unfavorable prior year reserve development was largely associated with Florida Personal Injury Protection (PIP)

•Strategic initiatives on track to produce or exceed their targeted benefits

•Life business trends remain stable; consumer demand remains strong

“We continue to make strong progress toward profitability against an ongoing, dynamic operating environment.” said Joseph P. Lacher, Jr., President, CEO and Chairman. “We are encouraged by the incremental improvements in our underlying performance. The implementation of 30 points of California specialty auto rate, along with the cumulative benefits from our other actions, are providing a tailwind for the fourth quarter and full year 2024. In addition, this quarter we advanced our strategic initiatives, which are on track to produce or exceed the intended operational and financial targets.”

*NOTE: In third quarter 2023, the Company finalized the establishment of Kemper Reciprocal, an Illinois-domiciled reciprocal insurance exchange that began writing policies in September 2023. The results of Kemper Reciprocal are required to be consolidated under US GAAP.

Unless specified otherwise, discussion of our third quarter 2023 results is focused on net income attributable to Kemper Corporation common shareholders, which does not include financial results from Kemper Reciprocal that are presented within the consolidated financial results in this release.

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.

2 The Company has recast all prior period results to reflect a change in the Adjusted Consolidated Operating Net Loss calculation to exclude the results of the Preferred Insurance business that we expect to fully exit (referred to as "Non-Core Operations"). The results of this business were previously reported as a reportable segment. Prior period amounts have been recast to reflect the change in reportable segments and the new segment measure of profitability.


	Three Months Ended				Nine Months Ended
(Dollars in Millions, Except Per Share Amounts) (Unaudited)	Sep 30, 2023		Sep 30, 20223			Sep 30, 2023		Sep 30, 20223
Net Loss	$	(146.3)	$	(74.8)		$	(323.5)	$	(233.3)

Adjusted Consolidated Net Operating Loss 1,2	$	(27.9)	$	(27.0)		$	(97.8)	$	(92.9)

Impact of Catastrophe Losses and Related Loss Adjustment Expense (LAE) on Net Loss	$	(16.4)	$	(21.3)		$	(68.1)	$	(56.2)

Diluted Net Loss Per Share From:
Net Loss	$	(2.28)	$	(1.17)		$	(5.05)	$	(3.66)

Adjusted Consolidated Net Operating Loss1,2	$	(0.44)	$	(0.43)		$	(1.53)	$	(1.46)

Impact of Catastrophe Losses and Related LAE on Net Loss Per Share	$	(0.32)	$	(0.33)		$	(1.35)	$	(0.88)

3 This press release recasts previously reported financial information for the provisions of Accounting Standards Update No. 2018-12, “Targeted Improvements to the Accounting for Long-Duration Contracts and related amendments” (“LDTI”) adopted as of January 1, 2023, with a transition date of January 1, 2021 under the modified retrospective method.

Revenues

Total revenues for the third quarter of 2023 decreased $162.1 million, or 11.9 percent, to $1,199.4 million, compared to the third quarter of 2022, mostly driven by $109.1 million of lower Specialty P&C earned premiums from a decrease in new business resulting from targeted actions to improve profitability, partially offset by higher average earned premium per exposure from rate increases. The decrease in total revenues was also driven by $40.0 million of lower Life earned premiums mostly due to the disposition of Kemper Health that was completed in December 2022, and a $23.1 million decrease in total revenues from Non-Core Operations.

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				Nine Months Ended
(Dollars in Millions) (Unaudited)	Sep 30, 2023		Sep 30, 2022			Sep 30, 2023		Sep 30, 2022
Segment Adjusted Net Operating (Loss) Income:
Specialty Property & Casualty Insurance	$	(33.2)	$	(28.7)		$	(102.4)	$	(112.3)
Life Insurance	14.7		14.0			36.8		45.8
Total Segment Adjusted Net Operating Loss	(18.5)		(14.7)			(65.6)		(66.5)
Corporate and Other Adjusted Net Operating Loss	(9.4)		(12.3)			(32.2)		(26.4)
Adjusted Consolidated Net Operating Loss1,2	(27.9)		(27.0)			(97.8)		(92.9)
Net Income (Loss) From:
Change in Fair Value of Equity and Convertible Securities	2.3		(8.8)			5.5		(63.1)
Net Realized Investment (Losses) Gains	(22.9)		(9.6)			(30.3)		0.3
Impairment (Losses) Gains	(0.8)		(6.6)			0.1		(17.5)
Acquisition and Disposition Related Transaction, Integration, Restructuring and Other Costs	(34.2)		(20.7)			(80.5)		(32.2)
Debt Extinguishment, Pension Settlement and Other Charges	(55.5)		—			(55.5)		(2.9)
Goodwill Impairment Charge	—		—			(45.5)		—
Non-Core Operations	(7.3)		(2.1)			(19.5)		(25.0)
Net Loss attributable to Kemper Corporation	(146.3)		(74.8)			(323.5)		(233.3)
Net Loss Noncontrolling Interest	(0.1)		—			(0.1)		—
Net Loss	$	(146.4)	$	(74.8)		$	(323.6)	$	(233.3)

The Specialty Property and Casualty Insurance segment reported net operating loss of $33.2 million for the third quarter of 2023, compared to net operating loss of $28.7 million in the third quarter of 2022. Results decreased due primarily to adverse prior year loss and LAE development, partially offset by an improvement in the Underlying Combined Ratio. Results for third quarter 2023 included $40.6 million of adverse prior year loss and LAE development from Florida personal injury protection driven by increased frequency and severity resulting from more litigated claim activity, mainly from policy years 2020 through 2022, and $23.9 million of adverse prior year loss and LAE development from bodily injury and property damage associated with claim activity from the second half of 2022. The segment’s Underlying Combined Ratio1 was 100.5 percent, compared to 106.8 percent in the third quarter of 2022. The improvement was primarily driven by higher average earned premiums per exposure resulting from rate increases and lower underlying claim frequency.

The Life Insurance segment reported net operating income of $14.7 million for the third quarter of 2023, compared to a net operating income of $14.0 million in the third quarter of 2022.

Capital

Total Shareholders’ Equity at the end of the quarter was $2,361.3 million, a decrease of $309.3 million, or 12 percent, since year-end 2022 primarily driven by the net loss for the year. Kemper and its direct non-insurance subsidiaries ended the quarter with cash and investments of $153.9 million, and $376.0 million of available borrowing capacity under the revolving credit agreement.

On August 2, 2023, Kemper announced that its Board of Directors declared a quarterly dividend of $0.31 per share, or $20.2 million. The dividend was paid on August 28, 2023 to its shareholders of record as of August 14, 2023.

Kemper ended the quarter with a book value per share of $36.85, a decrease of 12 percent from $41.79 at the end of 2022. Book Value Per Share Excluding Net Unrealized Losses on Fixed Maturities and Changes in the Discount Rate on Future Life Policyholder Benefits1 was $44.45, compared to $49.23 at the end of 2022.

Unaudited condensed Consolidated Statements of Loss for the three and nine months ended September 30, 2023 and 2022 are presented below.


	Three Months Ended				Nine Months Ended
(Dollars in Millions, Except Per Share Amounts)	Sep 30, 2023		Sep 30, 2022			Sep 30, 2023		Sep 30, 2022
Revenues:
Earned Premiums	$	1,117.8	$	1,290.9		$	3,465.6	$	3,948.5
Net Investment Income	107.0		97.8			315.1		316.3
Change in Value of Alternative Energy Partnership Investments4	0.8		0.4			2.3		(21.2)
Other Income	2.4		4.0			5.3		7.3
Income (Loss) from Change in Fair Value of Equity and Convertible Securities	2.8		(11.2)			6.9		(79.9)
Net Realized Investment (Losses) Gains	(30.3)		(12.1)			(38.3)		0.4



Impairment (Losses) Gains	(1.1)		(8.3)			0.1		(22.1)
Total Revenues	1,199.4		1,361.5			3,757.0		4,149.3
Expenses:
Policyholders’ Benefits and Incurred Losses and Loss Adjustment Expenses	975.2		1,085.3			3,011.9		3,359.6
Insurance Expenses	259.0		300.5			794.4		913.0
Loss from Early Extinguishment of Debt	—		—			—		3.7
Interest and Other Expenses	156.0		63.5			311.7		171.1
Goodwill Impairment	—		—			49.6		—
Total Expenses	1,390.2		1,449.3			4,167.6		4,447.4
Loss before Income Taxes	(190.8)		(87.8)			(410.6)		(298.1)
Income Tax Benefit	44.4		13.0			87.0		64.8
Net Loss	$	(146.4)	$	(74.8)		$	(323.6)	$	(233.3)




Less: Net Loss attributable to Noncontrolling Interest	(0.1)		—			(0.1)		—
Net Loss attributable to Kemper Corporation	$	(146.3)	$	(74.8)		$	(323.5)	$	(233.3)

Net Loss Per Unrestricted Share:
Basic	$	(2.28)	$	(1.17)		$	(5.05)	$	(3.66)
Diluted	$	(2.28)	$	(1.17)		$	(5.05)	$	(3.66)

Weighted-average Outstanding (Shares in Thousands):
Unrestricted Shares - Basic	64,056.9		63,852.8			64,004.4		63,804.4
Unrestricted Shares and Equivalent Shares - Diluted	64,056.9		63,852.8			64,004.4		63,804.4

Dividends Paid to Shareholders Per Share	$	0.31	$	0.31		$	0.93	$	0.93

4 Income related to Changes in Value of Alternative Energy Partnership Investments was $0.8 million for the three months ended September 30, 2023, compared to income of $0.4 million for the same period in 2022. Tax expense related to the Alternative Energy Partnership Investments was $0.2 million for the three months ended September 30, 2023, compared to tax expense of $0.1 million for the same period in 2022. This resulted in net income of $0.6 million and net income of $0.3 million attributable to Alternative Energy Partnership Investments for the three months ended September 30, 2023 and 2022, respectively.

4 Income related to Changes in Value of Alternative Energy Partnership Investments was $2.3 million for the nine months ended September 30, 2023, compared to a loss of $21.2 million for the same period in 2022. Tax expense related to the Alternative Energy Partnership Investments was $0.6 million for the nine months ended September 30, 2023, compared to tax benefit of $8.0 million for the same period in 2022. This resulted in net income of $1.7 million and a net loss of $13.2 million attributable to Alternative Energy Partnership Investments for the nine months ended September 30, 2023 and 2022, respectively.

Unaudited business segment revenues for the three and nine months ended September 30, 2023 and 2022 are presented below.


	Three Months Ended				Nine Months Ended
(Dollars in Millions)	Sep 30, 2023		Sep 30, 2022			Sep 30, 2023		Sep 30, 2022
REVENUES:
Specialty Property & Casualty Insurance:
Earned Premiums:
Personal Automobile	$	724.0	$	858.8		$	2,278.5	$	2,666.3
Commercial Automobile	166.4		140.7			488.4		398.5
Total Earned Premiums	890.4		999.5			2,766.9		3,064.8
Net Investment Income	42.7		33.9			125.7		102.8
Change in Value of Alternative Energy Partnership Investments	0.5		0.3			1.3		(10.6)
Other Income	1.6		2.3			3.2		5.0
Total Specialty Property & Casualty Insurance Revenues	935.2		1,036.0			2,897.1		3,162.0
Life & Health Insurance:
Earned Premiums:
Life	84.9		84.3			251.9		253.8
Accident & Health	5.8		45.9			17.5		136.8
Property	11.4		11.9			34.2		38.3
Total Earned Premiums	102.1		142.1			303.6		428.9
Net Investment Income	49.4		52.6			146.3		163.9
Change in Value of Alternative Energy Partnership Investments	0.2		0.1			0.6		(5.6)
Other (Loss) Income	(0.1)		—			(0.4)		(0.8)
Total Life & Health Insurance Revenues	151.6		194.8			450.1		586.4
Total Segment Revenues	1,086.8		1,230.8			3,347.2		3,748.4
Income (Loss) from Change in Fair Value of Equity and Convertible Securities	2.8		(11.2)			6.9		(79.9)
Net Realized Investment (Losses) Gains	(30.3)		(12.1)			(38.3)		0.4
Impairment (Losses) Gains	(1.1)		(8.3)			0.1		(22.1)
Non-Core Operations	138.0		161.1			431.7		486.0
Other	3.2		1.2			9.4		16.5









Total Revenues	$	1,199.4	$	1,361.5		$	3,757.0	$	4,149.3

KEMPER CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(Dollars in Millions)

(Unaudited)


	Sep 30, 2023		Dec 31, 2022
Assets:
Investments:
Fixed Maturities at Fair Value	$	6,474.5	$	6,894.8
Equity Securities at Fair Value	233.4		243.2
Equity Method Limited Liability Investments	224.1		217.0
Alternative Energy Partnership Investments	17.2		16.3
Short-term Investments at Cost which Approximates Fair Value	418.5		278.4
Company-Owned Life Insurance	506.9		586.5
Loans to Policyholders	281.8		283.4
Other Investments	273.1		269.9
Total Investments	8,429.5		8,789.5
Cash	110.0		212.4
Receivables from Policyholders	1,102.6		1,286.6
Other Receivables	223.4		262.6
Deferred Policy Acquisition Costs	622.2		635.6
Goodwill	1,250.7		1,300.3
Current Income Tax Assets	59.5		167.6
Deferred Income Tax Assets	258.5		129.0

Other Assets	488.7		530.0
Assets of Consolidated Variable Interest Entity
Fixed Maturities at Fair Value	1.6		—
Cash	2.4		—
Receivables from Policyholders	0.1		—
Other Assets	0.1		—
Total Assets	$	12,549.3	$	13,313.6
Liabilities and Shareholders’ Equity:
Insurance Reserves:
Life & Health	$	3,098.1	$	3,276.2
Property & Casualty	2,724.5		2,756.9
Total Insurance Reserves	5,822.6		6,033.1
Unearned Premiums	1,485.1		1,704.4
Policyholder Contract Liabilities	656.3		701.3
Deferred Income Tax Liabilities	57.8		—

Accrued Expenses and Other Liabilities	777.6		817.3
Long-term Debt, Current and Non-current, at Amortized Cost	1,388.6		1,386.9
Liabilities of Consolidated Variable Interest Entity
Insurance Reserves	—		—
Unearned Premiums	0.1		—
Accrued Expenses and Other Liabilities	—		—
Total Liabilities	10,188.1		10,643.0
Shareholders’ Equity:
Common Stock	6.4		6.4
Paid-in Capital	1,845.9		1,812.7
Retained Earnings	982.4		1,366.4
Accumulated Other Comprehensive Loss	(473.4)		(514.9)
Total Kemper Corporation Shareholders’ Equity	2,361.3		2,670.6
Noncontrolling Interest	(0.1)		—
Total Shareholders’ Equity	2,361.2		2,670.6
Total Liabilities and Shareholders’ Equity	$	12,549.3	$	13,313.6

Unaudited selected financial information for the Specialty Property & Casualty Insurance segment follows.


	Three Months Ended						Nine Months Ended
(Dollars in Millions)	Sep 30, 2023			Sep 30, 2022				Sep 30, 2023			Sep 30, 2022

Results of Operations
Net Premiums Written	$	733.0		$	968.5			$	2,585.7		$	3,012.1





Earned Premiums	$	890.4		$	999.5			$	2,766.9		$	3,064.8
Net Investment Income	42.7			33.9				125.7			102.8
Change in Value of Alternative Energy Partnership Investments	0.5			0.3				1.3			(10.6)
Other Income	1.6			2.3				3.2			5.0
Total Revenues	935.2			1,036.0				2,897.1			3,162.0
Incurred Losses and LAE related to:
Current Year:
Non-catastrophe Losses and LAE	712.1			868.0				2,301.4			2,709.9
Catastrophe Losses and LAE	6.2			14.8				32.0			23.1
Prior Years:
Non-catastrophe Losses and LAE	78.8			(6.6)				135.4			(24.8)
Catastrophe Losses and LAE	(1.0)			0.2				(2.4)			0.7
Total Incurred Losses and LAE	796.1			876.4				2,466.4			2,708.9
Insurance Expenses	182.3			198.8				563.6			603.5

Segment Adjusted Operating Loss	(43.2)			(39.2)				(132.9)			(150.4)
Income Tax Benefit	10.0			10.5				30.5			38.1
Total Segment Adjusted Net Operating Loss	$	(33.2)		$	(28.7)			$	(102.4)		$	(112.3)

Ratios Based On Earned Premiums
Current Year Non-catastrophe Losses and LAE Ratio	80.0		%	86.9		%		83.1		%	88.4		%
Current Year Catastrophe Losses and LAE Ratio	0.7			1.5				1.2			0.8
Prior Years Non-catastrophe Losses and LAE Ratio	8.8			(0.7)				4.9			(0.8)
Prior Years Catastrophe Losses and LAE Ratio	(0.1)			—				(0.1)			—
Total Incurred Loss and LAE Ratio	89.4			87.7				89.1			88.4
Insurance Expense Ratio	20.5			19.9				20.4			19.7
Combined Ratio	109.9		%	107.6		%		109.5		%	108.1		%

Underlying Combined Ratio1
Current Year Non-catastrophe Losses and LAE Ratio	80.0		%	86.9		%		83.1		%	88.4		%
Insurance Expense Ratio	20.5			19.9				20.4			19.7
Underlying Combined Ratio1	100.5		%	106.8		%		103.5		%	108.1		%

Non-GAAP Measure Reconciliation
Combined Ratio	109.9		%	107.6		%		109.5		%	108.1		%
Less:
Current Year Catastrophe Losses and LAE Ratio	0.7			1.5				1.2			0.8
Prior Years Non-catastrophe Losses and LAE Ratio	8.8			(0.7)				4.9			(0.8)
Prior Years Catastrophe Losses and LAE Ratio	(0.1)			—				(0.1)			—
Underlying Combined Ratio1	100.5		%	106.8		%		103.5		%	108.1		%

Unaudited selected financial information for the Life Insurance segment follows.


	Three Months Ended				Nine Months Ended
(Dollars in Millions)	Sep 30, 2023		Sep 30, 2022			Sep 30, 2023		Sep 30, 2022

Results of Operations





Earned Premiums	$	102.1	$	142.1		$	303.6	$	428.9
Net Investment Income	49.4		52.6			146.3		163.9
Change in Value of Alternative Energy Partnership Investments	0.2		0.1			0.6		(5.6)
Other (Loss) Income	(0.1)		—			(0.4)		(0.8)
Total Revenues	151.6		194.8			450.1		586.4
Policyholders’ Benefits and Incurred Losses and LAE	64.7		88.5			202.9		272.7
Insurance Expenses	69.4		90.7			204.8		262.2
Segment Adjusted Operating Income	17.5		15.6			42.4		51.5
Income Tax Expense	(2.8)		(1.6)			(5.6)		(5.7)
Total Segment Adjusted Net Operating Income	$	14.7	$	14.0		$	36.8	$	45.8

Use of Non-GAAP Financial Measures

Adjusted Consolidated Net Operating Loss1 is an after-tax, non-GAAP financial measure and is computed by excluding from Net Loss the after-tax impact of:

(i) Income (Loss) from Change in Fair Value of Equity and Convertible Securities;

(ii) Net Realized Investment (Losses) Gains;

(iii) Impairment (Losses) Gains;

(iv) Acquisition and Disposition Related Transaction, Integration, Restructuring and Other Costs;

(v) Debt Extinguishment, Pension Settlement and Other Charges;

(vi) Goodwill Impairment Charges;

(vii) Non-Core Operations; and

(viii) 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 Loss. There were no applicable significant non-recurring items that Kemper excluded from the calculation of Adjusted Consolidated Net Operating Loss1 for the three and nine months ended September 30, 2023 or 2022.

Kemper believes that Adjusted Consolidated Net Operating Loss1 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 Investment (Losses) Gains and Impairment (Losses) Gains 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 Kemper’s investments, the timing of which is unrelated to the insurance underwriting process. Acquisition and Disposition Related Transaction, Integration, Restructuring and Other 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 Settlement 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.

Goodwill impairment charges are excluded because they are infrequent and non-recurring charges. Non-Core Operations includes the results of our Preferred Insurance business which we expect to fully exit. These results are excluded because they are irrelevant to our ongoing operations and do not qualify for Discontinued Operations under Generally Accepted Accounting Principles ("GAAP"). Significant non-recurring items are excluded because, by their nature, they are not indicative of 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 profitability of Kemper’s businesses.

A reconciliation of Net Loss to Adjusted Consolidated Net Operating Loss1 for the three and nine months ended September 30, 2023 and 2022 is presented below.


	Three Months Ended				Nine Months Ended
(Dollars in Millions) (Unaudited)	Sep 30, 2023		Sep 30, 2022			Sep 30, 2023		Sep 30, 2022
Net Loss	$	(146.4)	$	(74.8)		$	(323.6)	$	(233.3)
Less: Net Loss attributable to noncontrolling interest	(0.1)		—			(0.1)		—
Net Loss attributable to Kemper Corporation	$	(146.3)	$	(74.8)		$	(323.5)	$	(233.3)
Less Net Income (Loss) From:
Change in Fair Value of Equity and Convertible Securities	2.3		(8.8)			5.5		(63.1)
Net Realized Investment (Losses) Gains	(22.9)		(9.6)			(30.3)		0.3
Impairment (Losses) Gains	(0.8)		(6.6)			0.1		(17.5)
Acquisition and Disposition Related Transaction, Integration, Restructuring and Other Costs	(34.2)		(20.7)			(80.5)		(32.2)
Debt Extinguishment, Pension Settlement and Other Charges	(55.5)		—			(55.5)		(2.9)
Goodwill Impairment Charge	—		—			(45.5)		—
Non-Core Operations	(7.3)		(2.1)			(19.5)		(25.0)
Adjusted Consolidated Net Operating Loss1,2	$	(27.9)	$	(27.0)		$	(97.8)	$	(92.9)

Diluted Adjusted Net Operating Loss Per Unrestricted Share1 is a non-GAAP financial measure computed by dividing Adjusted Net Operating Loss1 attributed to unrestricted shares by the weighted-average unrestricted shares and equivalent shares outstanding. The most directly comparable GAAP financial measure is Diluted Net Loss Per Unrestricted Share.

A reconciliation of Diluted Net Loss Per Unrestricted Share to Diluted Adjusted Net Operating Loss Per Unrestricted Share1 for the three and nine months ended September 30, 2023 and 2022 is presented below.


	Three Months Ended				Nine Months Ended
(Unaudited)	Sep 30, 2023		Sep 30, 2022		Sep 30, 2023		Sep 30, 2022
Diluted Net Loss Per Unrestricted Share	$	(2.28)	$	(1.17)	$	(5.05)	$	(3.66)
Less Net Income (Loss) Per Unrestricted Share From:
Change in Fair Value of Equity and Convertible Securities	0.04		(0.14)		0.09		(0.99)
Net Realized Investment (Losses) Gains	(0.35)		(0.15)		(0.47)		—
Impairment (Losses) Gains	(0.01)		(0.10)		—		(0.27)
Acquisition and Disposition Related Transaction, Integration, Restructuring and Other Costs	(0.54)		(0.32)		(1.26)		(0.50)
Debt Extinguishment, Pension Settlement and Other Charges	(0.87)		—		(0.87)		(0.05)
Goodwill Impairment Charge	—		—		(0.71)		—
Non-Core Operations	(0.11)		(0.03)		(0.30)		(0.39)
Diluted Adjusted Net Operating Loss Per Unrestricted Share1,2	$	(0.44)	$	(0.43)	$	(1.53)	$	(1.46)

Book Value Per Share Excluding Net Unrealized Gains and Losses Losses on Fixed Maturities and the Change in Discount Rate on Future Life Policyholder Benefits1 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 and losses on fixed income securities and the change in discount rate on future life policyholder benefits 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 and losses on fixed income securities and the change in discount rate on future life policyholder benefits 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.

A reconciliation of the numerator used in the computation of Book Value Per Share Excluding Net Unrealized Gains and Losses on Fixed Maturities and the Change in Discount Rate on Future Life Policyholder Benefits1 and Book Value Per Share at September 30, 2023 and December 31, 2022 is presented below.


(Dollars in Millions) (Unaudited)	Sep 30, 2023		Dec 31, 2022
Shareholders’ Equity	$	2,361.3	$	2,670.6
Less: Net Unrealized Losses on Fixed Maturities	(900.1)		(716.8)
Less: Change in Discount Rate on Future Life Policyholder Benefits	412.8		241.1
Kemper Corporation Shareholders’ Equity Excluding Net Unrealized Losses on Fixed Maturities and Change in Discount Rate on Future Life Policyholder Benefits1	$	2,848.6	$	3,146.3

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 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 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 Kemper’s underwriting performance.

Conference Call

Kemper will host its conference call to discuss third quarter 2023 results on Monday October 30th, at 5:00 p.m. Eastern (4:00 p.m. Central). The conference call will be accessible via the internet and by telephone at 888.259.6580, access code 15917686. 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 third quarter of 2023, 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 $13 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 and Life brands. Kemper serves over 5.1 million policies, is represented by approximately 25,000 agents and brokers, and has approximately 8,400 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;

•changes in the interest rate environment;

•supply chain disruption;

•product demand and pricing;

•effects of governmental and regulatory actions;

•litigation outcomes and trends;

•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 press release.

###


Contacts
Investors: Karen Guerra			312.668.9720 or investors@kemper.com
Media: Barbara Ciesemier			312.661.4521 or bciesemier@kemper.com

Investor Supplement

Third Quarter 2023

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;

•changes in the interest rate environment;

•supply chain disruption;

•product demand and pricing;

•effects of governmental and regulatory actions;

•litigation outcomes and trends;

•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”).

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 31-34.

Kemper Corporation

Investor Supplement

Third Quarter 2023

Table of Contents



			Page
Summary of Changes to Adjusted Consolidated Operating Loss			2
Consolidated Financial Highlights			3-4
Consolidated Statements of Loss			5
Consolidated Balance Sheets			6
Consolidated Statements of Cash Flows			7-8
Capital Metrics			9-10
Debt Outstanding, FHLB Advances and Ratings			11
Adjusted Segment Summary Results:
Revenues			12
Adjusted Operating Loss			13
Adjusted Net Operating Loss			13
Catastrophe Frequency and Severity			14-15
Specialty Property & Casualty Insurance Segment - Results of Operations and Selected Financial Information			16-17
Personal Automobile Insurance			18
Commercial Automobile Insurance			19





Life Insurance Segment - Results of Operations and Selected Financial Information			20-21
Life Insurance			22
Accident and Health Insurance			22
Property Insurance			23
Expenses			24
Details of Investment Performance			25
Details of Invested Assets			26-27
Investment Concentration			28
Municipal Bond Securities			29
Investments in Limited Liability Companies and Limited Partnerships			30
Definitions of Non-GAAP Financial Measures			31-34

Kemper Corporation

Summary of Changes to Adjusted Consolidated Operating Loss

(Dollars in Millions, Except Per Share Amounts)

(Unaudited)

The Company has recast all prior period results included in this financial supplement to reflect a change in the calculation of Adjusted Consolidated Net Operating Loss to exclude the results of the Preferred Insurance business that we expect to fully exit. The results of this business, previously reported as a reportable segment, are now reflected as Non-Core Operations and presented as a reconciling item from Net Loss to Adjusted Consolidated Net Operating Loss. Prior period amounts have been recast to reflect the change in calculation of Adjusted Consolidated Operating Net Loss.

A reconciliation of reported and recasted measure of performance and metrics is provided below.


	Three Months Ended												Year to Date
	Jun 30, 2023		Mar 31, 2023		Dec 31, 2022		Sep 30, 2022		Jun 30, 2022		Mar 31, 2022			Dec 31, 2022		Dec 31, 2021

Adjusted Consolidated Operating Loss - As Reported	$	(23.9)	$	(85.0)	$	(37.5)	$	(43.5)	$	(50.3)	$	(71.7)		$	(203.0)	$	(373.8)
Less: Loss from Non-Core Operations	(3.7)		(12.2)		(2.0)		(3.3)		(21.6)		(9.5)			(36.4)		(39.8)
Adjusted Consolidated Operating Loss - As Recasted	$	(20.2)	$	(72.8)	$	(35.5)	$	(40.2)	$	(28.7)	$	(62.2)		$	(166.6)	$	(334.0)

Adjusted Consolidated Net Operating Loss - As Reported	$	(16.9)	$	(65.2)	$	(24.4)	$	(29.1)	$	(37.2)	$	(51.6)		$	(142.3)	$	(222.0)
Less: Net Loss from Non-Core Operations	(2.7)		(9.5)		(0.9)		(2.1)		(16.8)		(6.1)			(25.9)		(12.5)
Adjusted Consolidated Net Operating Loss - As Recasted	$	(14.2)	$	(55.7)	$	(23.5)	$	(27.0)	$	(20.4)	$	(45.5)		$	(116.4)	$	(209.5)

Adjusted Consolidated Net Loss Per Unrestricted Share - As Reported:
Basic - Adjusted Consolidated Net Loss	$	(0.26)	$	(1.02)	$	(0.38)	$	(0.46)	$	(0.58)	$	(0.81)		$	(2.23)	$	(3.45)
Diluted - Adjusted Consolidated Net Loss	$	(0.26)	$	(1.02)	$	(0.38)	$	(0.46)	$	(0.58)	$	(0.81)		$	(2.23)	$	(3.45)

Less: Non-Core Operations Net Loss Per Unrestricted Share:
Basic - Non-Core Operations Net Loss	$	(0.04)	$	(0.15)	$	(0.02)	$	(0.03)	$	(0.26)	$	(0.10)		$	(0.41)	$	(0.19)
Diluted - Non-Core Operations Net Loss	$	(0.04)	$	(0.15)	$	(0.02)	$	(0.03)	$	(0.26)	$	(0.10)		$	(0.41)	$	(0.19)

Adjusted Consolidated Net Loss Per Unrestricted Share - As Recasted:
Basic - Adjusted Consolidated Net Loss	$	(0.22)	$	(0.87)	$	(0.36)	$	(0.43)	$	(0.32)	$	(0.71)		$	(1.82)	$	(3.26)
Diluted - Adjusted Consolidated Net Loss	$	(0.22)	$	(0.87)	$	(0.36)	$	(0.43)	$	(0.32)	$	(0.71)		$	(1.82)	$	(3.26)


Kemper Corporation Consolidated Financial Highlights (Dollars in Millions, Except Per Share Amounts) (Unaudited)

	Three Months Ended														Nine Months Ended
	Sep 30, 2023		Jun 30, 2023		Mar 31, 2023		Dec 31, 2022		Sep 30, 2022		Jun 30, 2022		Mar 31, 2022		Sep 30, 2023		Sep 30, 2022
For Period Ended
Earned Premiums	$	1,117.8	$	1,166.9	$	1,180.9	$	1,264.9	$	1,290.9	$	1,337.6	$	1,320.0	$	3,465.6	$	3,948.5

Net Investment Income	107.0		106.3		101.8		106.3		97.8		118.5		100.0		315.1		316.3
Change in Value of Alternative Energy Partnership Investments	0.8		0.8		0.7		1.3		0.4		(4.9)		(16.7)		2.3		(21.2)
Other Income	2.4		1.7		1.2		1.9		4.0		0.9		2.4		5.3		7.3
Income (Loss) from Change in Fair Value of Equity and Convertible Securities	2.8		2.4		1.7		—		(11.2)		(40.5)		(28.2)		6.9		(79.9)
Net Realized Investment (Losses) Gains	(31.4)		(15.3)		8.5		0.2		(20.4)		6.1		(7.4)		(38.2)		(21.7)

Investment and Other Income	81.6		95.9		113.9		109.7		70.6		80.1		50.1		291.4		200.8
Total Revenues	$	1,199.4	$	1,262.8	$	1,294.8	$	1,374.6	$	1,361.5	$	1,417.7	$	1,370.1	$	3,757.0	$	4,149.3


Net Loss	$	(146.4)	$	(97.1)	$	(80.1)	$	(53.3)	$	(74.8)	$	(72.2)	$	(86.3)	$	(323.6)	$	(233.3)
Less: Net Loss attributable to Noncontrolling Interest	(0.1)		—		—		—		—		—		—		(0.1)		—
Net Loss attributable to Kemper Corporation	$	(146.3)	$	(97.1)	$	(80.1)	$	(53.3)	$	(74.8)	$	(72.2)	$	(86.3)	$	(323.5)	$	(233.3)



Adjusted Consolidated Net Operating Loss1	$	(27.9)	$	(14.2)	$	(55.7)	$	(23.5)	$	(27.0)	$	(20.4)	$	(45.5)	$	(97.8)	$	(92.9)

Per Unrestricted Common Share Amounts:
Basic:
Net Loss attributable to Kemper Corporation per Unrestricted Share:	$	(2.28)	$	(1.52)	$	(1.25)	$	(0.84)	$	(1.17)	$	(1.13)	$	(1.36)	$	(5.05)	$	(3.66)

Adjusted Consolidated Net Operating Loss1	$	(0.44)	$	(0.22)	$	(0.87)	$	(0.36)	$	(0.43)	$	(0.32)	$	(0.71)	$	(1.53)	$	(1.46)
Diluted:
Net Loss attributable to Kemper Corporation per Unrestricted Share:	$	(2.28)	$	(1.52)	$	(1.25)	$	(0.84)	$	(1.17)	$	(1.13)	$	(1.36)	$	(5.05)	$	(3.66)

Adjusted Consolidated Net Operating Loss1	$	(0.44)	$	(0.22)	$	(0.87)	$	(0.36)	$	(0.43)	$	(0.32)	$	(0.71)	$	(1.53)	$	(1.46)


Dividends Paid to Shareholders Per Share	$	0.31	$	0.31	$	0.31	$	0.31	$	0.31	$	0.31	$	0.31	$	0.93	$	0.93


Kemper Corporation Consolidated Financial Highlights (Dollars in Millions, Except Per Share Amounts) (Unaudited)

	As of
	Sep 30, 2023			Jun 30, 2023			Mar 31, 2023			Dec 31, 2022			Sep 30, 2022			Jun 30, 2022			Mar 31, 2022
At Period End
Total Assets	$	12,549.3		$	13,096.3		$	13,403.7		$	13,313.6		$	13,399.9		$	13,964.2		$	14,667.7
Insurance Reserves	$	5,822.6		$	6,043.9		$	6,120.7		$	6,033.1		$	5,940.1		$	6,343.5		$	6,864.3
Debt	$	1,388.6		$	1,388.1		$	1,387.5		$	1,386.9		$	1,386.4		$	1,385.8		$	1,385.2
Kemper Corporation Shareholders’ Equity	$	2,361.3		$	2,512.2		$	2,646.9		$	2,670.6		$	2,694.5		$	2,844.1		$	2,969.2
Kemper Corporation Shareholders’ Equity Excluding Goodwill1,2	$	1,110.6		$	1,261.5		$	1,346.6		$	1,370.3		$	1,395.7		$	1,532.1		$	1,657.2
Common Shares Issued and Outstanding (In Millions)	64.081			64.054			63.982			63.913			63.884			63.850			63.800
Book Value Per Share2	$	36.85		$	39.22		$	41.37		$	41.79		$	42.18		$	44.54		$	46.54
Book Value Per Share Excluding Goodwill1,2	$	17.33		$	19.69		$	21.05		$	21.44		$	21.85		$	24.00		$	25.97
Book Value Per Share Excluding Net Unrealized Losses on Fixed Maturities and Changes in the Discount Rate on Future Life Policyholder Benefits1,2	$	44.45		$	46.18		$	47.93		$	49.23		$	50.16		$	51.76		$	53.11
Book Value Per Share Excluding Net Unrealized Losses on Fixed Maturities, Changes in the Discount Rate on Future Life Policyholder Benefits and Goodwill1,2	$	24.94		$	26.66		$	27.61		$	28.88		$	29.83		$	31.21		$	32.55
Debt to Total Capitalization2	37.0		%	35.6		%	34.4		%	34.2		%	34.0		%	32.8		%	31.8		%
Rolling 12 Months Return on 5-point Average Kemper Corporation Shareholders’ Equity2,3	(14.6)		%	(11.4)		%	(10.1)		%	(10.0)		%	(11.1)		%	(10.7)		%	(9.9)		%
1 Non-GAAP Financial Measure. See pages 31-32 for definition.
2 See Capital Metrics on pages 9-10 for detail calculations.
3 Rolling 12 Months Return on 5-point Average Kemper Corporation Shareholders’ Equity is calculated by taking the last 12 months of Net Loss attributable to Kemper Corporation divided by the 5-point average Kemper Corporation Shareholders’ Equity. The 5-point Average Kemper Corporation Shareholders’ Equity is calculated by using a 5-point quarter average of Kemper Corporation Shareholders’ Equity for the 12 month period.

Kemper Corporation

Consolidated Statements of Loss

(Dollars in Millions, Except Per Share Amounts)

(Unaudited)


	Three Months Ended														Nine Months Ended
	Sep 30, 2023		Jun 30, 2023		Mar 31, 2023		Dec 31, 2022		Sep 30, 2022		Jun 30, 2022		Mar 31, 2022			Sep 30, 2023		Sep 30, 2022
Revenues:
Earned Premiums	$	1,117.8	$	1,166.9	$	1,180.9	$	1,264.9	$	1,290.9	$	1,337.6	$	1,320.0		$	3,465.6	$	3,948.5
Net Investment Income	107.0		106.3		101.8		106.3		97.8		118.5		100.0			315.1		316.3
Change in Value of Alternative Energy Partnership Investments	0.8		0.8		0.7		1.3		0.4		(4.9)		(16.7)			2.3		(21.2)
Other Income	2.4		1.7		1.2		1.9		4.0		0.9		2.4			5.3		7.3
Income (Loss) from Change in Fair Value of Equity and Convertible Securities	2.8		2.4		1.7		—		(11.2)		(40.5)		(28.2)			6.9		(79.9)
Net Realized Investment (Losses) Gains	(30.3)		(14.4)		6.4		3.9		(12.1)		11.0		1.5			(38.3)		0.4



Impairment (Losses) Gains	(1.1)		(0.9)		2.1		(3.7)		(8.3)		(4.9)		(8.9)			0.1		(22.1)
Total Revenues	1,199.4		1,262.8		1,294.8		1,374.6		1,361.5		1,417.7		1,370.1			3,757.0		4,149.3
Expenses:
Policyholders’ Benefits and Incurred Losses and Loss Adjustment Expenses	975.2		984.7		1,052.0		1,073.0		1,085.3		1,151.1		1,123.2			3,011.9		3,359.6
Insurance Expenses	259.0		266.1		269.3		288.0		300.5		307.7		304.8			794.4		913.0
Loss from Early Extinguishment of Debt	—		—		—		—		—		—		3.7			—		3.7
Interest and Other Expenses	156.0		78.3		77.4		86.5		63.5		53.5		54.1			311.7		171.1
Goodwill Impairment	—		49.6		—		—		—		—		—			49.6		—
Total Expenses	1,390.2		1,378.7		1,398.7		1,447.5		1,449.3		1,512.3		1,485.8			4,167.6		4,447.4
Loss before Income Taxes	(190.8)		(115.9)		(103.9)		(72.9)		(87.8)		(94.6)		(115.7)			(410.6)		(298.1)
Income Tax Benefit	44.4		18.8		23.8		19.6		13.0		22.4		29.4			87.0		64.8







Net Loss	(146.4)		(97.1)		(80.1)		(53.3)		(74.8)		(72.2)		(86.3)			(323.6)		(233.3)
Less: Net Loss attributable to Noncontrolling Interest	(0.1)		—		—		—		—		—		—			(0.1)		—
Net Loss attributable to Kemper Corporation	$	(146.3)	$	(97.1)	$	(80.1)	$	(53.3)	$	(74.8)	$	(72.2)	$	(86.3)		$	(323.5)	$	(233.3)

Net Loss attributable to Kemper Corporation per Unrestricted Share:
Basic	$	(2.28)	$	(1.52)	$	(1.25)	$	(0.84)	$	(1.17)	$	(1.13)	$	(1.36)		$	(5.05)	$	(3.66)
Diluted	$	(2.28)	$	(1.52)	$	(1.25)	$	(0.84)	$	(1.17)	$	(1.13)	$	(1.36)		$	(5.05)	$	(3.66)



Dividends Paid to Shareholders Per Share	$	0.31	$	0.31	$	0.31	$	0.31	$	0.31	$	0.31	$	0.31		$	0.93	$	0.93
Weighted Average Unrestricted Common Shares Outstanding (in Millions)	64.057		64.009		63.947		63.888		63.853		63.816		63.744			64.004		63.804

Kemper Corporation

Consolidated Balance Sheets

(Dollars in Millions)

(Unaudited)


	Sep 30, 2023		Jun 30, 2023		Mar 31, 2023		Dec 31, 2022		Sep 30, 2022		Jun 30, 2022		Mar 31, 2022
Assets:
Investments:
Fixed Maturities at Fair Value	$	6,474.5	$	6,943.8	$	7,189.4	$	6,894.8	$	6,577.1	$	7,218.8	$	7,783.9
Equity Securities at Fair Value	233.4		247.0		243.6		243.2		322.7		395.0		571.5
Equity Method Limited Liability Investments	224.1		225.1		218.7		217.0		226.0		228.9		230.0
Alternative Energy Partnerships	17.2		16.8		17.0		16.3		16.9		17.0		22.4
Short-term Investments at Cost which Approximates Fair Value	418.5		406.3		278.4		278.4		357.2		230.2		243.8
Company-Owned Life Insurance	506.9		500.5		595.3		586.5		578.6		566.2		556.4
Loans to Policyholders	281.8		281.6		283.1		283.4		283.2		282.3		284.7
Other Investments	273.1		275.6		271.8		269.9		274.2		276.9		275.4
Total Investments	8,429.5		8,896.7		9,097.3		8,789.5		8,635.9		9,215.3		9,968.1
Cash	110.0		73.6		60.6		212.4		249.2		348.6		297.3
Receivables from Policyholders	1,102.6		1,246.3		1,344.0		1,286.6		1,345.8		1,375.1		1,404.5
Other Receivables	223.4		262.0		249.4		262.6		228.7		206.5		203.4
Deferred Policy Acquisition Costs	622.2		646.2		651.5		635.6		645.1		690.1		689.6
Goodwill	1,250.7		1,250.7		1,300.3		1,300.3		1,298.8		1,312.0		1,312.0
Current Income Tax Assets	59.5		9.0		15.0		167.6		165.1		200.8		183.0
Deferred Income Tax Assets	258.5		208.0		166.0		129.0		113.7		58.7		43.4
Assets Held-for-Sale	—		—		—		—		172.8		—		—
Other Assets	488.7		503.8		519.6		530.0		544.8		557.1		566.4
Assets of Consolidated Variable Interest Entity
Fixed Maturities at Fair Value	1.6		—		—		—		—		—		—
Cash	2.4		—		—		—		—		—		—
Receivables from Policyholders	0.1		—		—		—		—		—		—
Other Assets	0.1		—		—		—		—		—		—
Total Assets	$	12,549.3	$	13,096.3	$	13,403.7	$	13,313.6	$	13,399.9	$	13,964.2	$	14,667.7
Liabilities and Shareholders’ Equity:
Insurance Reserves:
Life and Health	$	3,098.1	$	3,363.8	$	3,399.6	$	3,276.2	$	3,219.8	$	3,585.1	$	4,104.2
Property and Casualty	2,724.5		2,680.1		2,721.1		2,756.9		2,720.3		2,758.4		2,760.1
Total Insurance Reserves	5,822.6		6,043.9		6,120.7		6,033.1		5,940.1		6,343.5		6,864.3
Unearned Premiums	1,485.1		1,665.2		1,778.0		1,704.4		1,794.8		1,854.4		1,890.5
Policyholder Contract Liabilities	656.3		700.2		700.6		701.3		704.0		704.5		655.0
Deferred Income Tax Liabilities	57.8		—		—		—		—		—		—
Liabilities Held-for-Sale	—		—		—		—		84.8		—		—
Accrued Expenses and Other Liabilities	777.6		786.7		770.0		817.3		795.3		831.9		903.5
Long-term Debt, Current and Non-current, at Amortized Cost	1,388.6		1,388.1		1,387.5		1,386.9		1,386.4		1,385.8		1,385.2
Liabilities of Consolidated Variable Interest Entity
Insurance Expenses	—		—		—		—		—		—		—
Unearned Premiums	0.1		—		—		—		—		—		—
Accrued Expenses and Other Liabilities	—		—		—		—		—		—		—
Total Liabilities	10,188.1		10,584.1		10,756.8		10,643.0		10,705.4		11,120.1		11,698.5
Kemper Corporation Shareholders’ Equity:
Common Stock	6.4		6.4		6.4		6.4		6.4		6.4		6.4
Paid-in Capital	1,845.9		1,837.6		1,828.9		1,812.7		1,822.2		1,812.5		1,803.1
Retained Earnings	982.4		1,149.0		1,266.3		1,366.4		1,439.7		1,534.6		1,627.5
Accumulated Other Comprehensive Loss	(473.4)		(480.8)		(454.7)		(514.9)		(573.8)		(509.4)		(467.8)
Total Kemper Corporation Shareholders’ Equity	2,361.3		2,512.2		2,646.9		2,670.6		2,694.5		2,844.1		2,969.2
Noncontrolling Interest	$	(0.1)	$	—	$	—	$	—	$	—	$	—	$	—
Total Shareholders’ Equity	$	2,361.2	$	2,512.2	$	2,646.9	$	2,670.6	$	2,694.5	$	2,844.1	$	2,969.2
Total Liabilities and Shareholders’ Equity	$	12,549.3	$	13,096.3	$	13,403.7	$	13,313.6	$	13,399.9	$	13,964.2	$	14,667.7


Kemper Corporation Consolidated Statements of Cash Flows (Dollars in Millions) (Unaudited)
	Nine Months Ended
	Sep 30, 2023		Sep 30, 2022
Cash Flows from Operating Activities:
Net Loss	$	(323.6)	$	(233.3)
Adjustments to Reconcile Net Loss to Net Cash Used in Operating Activities
Net Realized Investment Losses (Gains)	38.3		(0.4)
Impairment (Gains) Losses	(0.1)		22.1
Depreciation and Amortization of Property, Equipment and Software	39.1		38.9
Amortization of Intangible Assets Acquired	11.0		16.0
Settlement Costs Related to Defined Benefit Pension Plan	70.2		—

Loss from Early Extinguishment of Debt	—		3.7
Change in Accumulated Undistributed Earnings of Equity Method Limited Liability Investments	(2.9)		(13.7)
(Income) Loss from Change in Value of Alternative Energy Partnership Investments	(2.3)		21.2
(Increase) Decrease in Value of Equity and Convertible Securities	(6.9)		79.9
Goodwill Impairment	49.6		—
Changes in:
Receivables from Policyholders	184.0		69.6
Reinsurance Recoverables	11.6		(1.8)
Deferred Policy Acquisition Costs	13.4		4.2
Insurance Reserves	7.9		(25.0)
Unearned Premiums	(219.3)		(93.4)
Income Taxes	27.5		(62.9)
Other Assets and Liabilities	(2.0)		4.8
Net Cash Used in Operating Activities	(104.5)		(170.1)
Cash Flows from Investing Activities:
Proceeds from the Sales, Calls and Maturities of Fixed Maturities	529.8		1,019.4
Proceeds from the Sales or Paydowns of Investments:
Equity Securities	73.9		458.3

Mortgage Loans	68.9		69.9
Other Investments	11.2		41.9
Purchases of Investments:
Fixed Maturities	(362.7)		(1,386.7)
Equity Securities	(40.1)		(55.3)
Real Estate Investments	(0.8)		(2.9)
Company-Owned Life Insurance	—		(110.0)
Mortgage Loans	(76.6)		(67.3)
Other Investments	(15.9)		(9.7)
Net Purchases of Short-term Investments	(136.5)		(73.6)

Sale of Infinity Security, Net of Cash Disposed	—		4.9

Acquisition of Software and Long-lived Assets	(39.1)		(27.1)
Settlement Proceeds from Company-Owned Life Insurance	102.2		—
Other	(9.1)		8.6
Net Cash Provided by (Used in) Investing Activities	105.2		(129.6)


Kemper Corporation Consolidated Statements of Cash Flows (Dollars in Millions) (Unaudited)
	Nine Months Ended
	Sep 30, 2023		Sep 30, 2022
Net Cash Provided by (Used in) Investing Activities (Carryforward from page 7)	$	105.2	$	(129.6)
Cash Flows from Financing Activities:
Repayment of Long-term Debt	—		(280.0)
Proceeds from Issuance of 3.80% Senior Notes due February 23, 2032	—		396.3
Issuance Fees on 3.80% 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	123.3		319.9
Repayment of Policyholder Contract Obligations	(168.4)		(120.1)

Proceeds from Shares Issued under Employee Stock Purchase Plan	3.3		3.8

Dividends and Dividend Equivalents Paid	(59.8)		(59.9)
Other	0.9		0.3
Net Cash (Used in) Provided by Financing Activities	(100.7)		403.8

Net (decrease) increase in cash	(100.0)		101.0
Cash, Beginning of Year	212.4		148.2
Cash, End of Period	$	112.4	$	249.2

Net Increase in cash, Held-for-Sale	—		3.1
Cash at beginning of year, Held-for-Sale	—		—
Cash at end of period, Held-for-Sale	—		3.1

Net (decrease) increase in cash, Net of Held-for-Sale	(100.0)		97.9
Cash at beginning of year, Net of Held-for-Sale	212.4		148.2
Cash at end of period, Net of Held-for-Sale	$	112.4	$	246.1


Kemper Corporation Capital Metrics (Dollars and Shares in Millions, Except Per Share Amounts) (Unaudited)
	Sep 30, 2023			Jun 30, 2023			Mar 31, 2023			Dec 31, 2022			Sep 30, 2022			Jun 30, 2022			Mar 31, 2022
Book Value Per Share
Numerator
Kemper Corporation Shareholders’ Equity	$	2,361.3		$	2,512.2		$	2,646.9		$	2,670.6		$	2,694.5		$	2,844.1		$	2,969.2
Less: Goodwill	(1,250.7)			(1,250.7)			(1,300.3)			(1,300.3)			(1,298.8)			(1,312.0)			(1,312.0)
Kemper Corporation Shareholders’ Equity Excluding Goodwill1	$	1,110.6		$	1,261.5		$	1,346.6		$	1,370.3		$	1,395.7		$	1,532.1		$	1,657.2
Kemper Corporation Shareholders’ Equity	$	2,361.3		$	2,512.2		$	2,646.9		$	2,670.6		$	2,694.5		$	2,844.1		$	2,969.2
Less: Net Unrealized Losses on Fixed Maturities	900.1			640.5			574.2			716.8			782.7			472.2			13.7
Less: Changes in the Discount Rate on Future Life Policyholder Benefits	(412.8)			(194.4)			(154.2)			(241.1)			(272.8)			(11.4)			405.5
Kemper Corporation Shareholders’ Equity Excluding Net Unrealized Losses on Fixed Maturities and Changes in the Discount Rate on Future Life Policyholder Benefits1	$	2,848.6		$	2,958.3		$	3,066.9		$	3,146.3		$	3,204.4		$	3,304.9		$	3,388.4
Less: Goodwill	(1,250.7)			(1,250.7)			(1,300.3)			(1,300.3)			(1,298.8)			(1,312.0)			(1,312.0)
Kemper Corporation Shareholders’ Equity Excluding Net Unrealized Losses on Fixed Maturities, Changes in the Discount Rate on Future Life Policyholder Benefits and Goodwill1	$	1,597.9		$	1,707.6		$	1,766.6		$	1,846.0		$	1,905.6		$	1,992.9		$	2,076.4
Denominator
Common Shares Issued and Outstanding	64.081			64.054			63.982			63.913			63.884			63.850			63.800
Book Value Per Share	$	36.85		$	39.22		$	41.37		$	41.79		$	42.18		$	44.54		$	46.54
Book Value Per Share Excluding Goodwill1	$	17.33		$	19.69		$	21.05		$	21.44		$	21.85		$	24.00		$	25.97
Book Value Per Share Excluding Net Unrealized Losses on Fixed Maturities and Changes in the Discount Rate on Future Life Policyholder Benefits1	$	44.45		$	46.18		$	47.93		$	49.23		$	50.16		$	51.76		$	53.11
Book Value Per Share Excluding Net Unrealized Losses on Fixed Maturities, Changes in the Discount Rate on Future Life Policyholder Benefits and Goodwill1	$	24.94		$	26.66		$	27.61		$	28.88		$	29.83		$	31.21		$	32.55

Return on Kemper Corporation Shareholders’ Equity
Numerator
Rolling 12 Months Net Loss	$	(376.8)		$	(305.3)		$	(280.4)		$	(286.6)		$	(330.9)		$	(335.4)		$	(327.5)
Denominator (5-point Average)
5-point Average Kemper Corporation Shareholders’ Equity	$	2,577.1		$	2,673.7		$	2,765.1		$	2,861.6		$	2,985.7		$	3,130.9		$	3,298.5
Rolling 12 Months Return on Average Kemper Corporation Shareholders’ Equity (5-point Average)	(14.6)		%	(11.4)		%	(10.1)		%	(10.0)		%	(11.1)		%	(10.7)		%	(9.9)		%

Return on Kemper Corporation Shareholders’ Equity Excluding Goodwill1
Denominator (5-point Average)
5-point Average Kemper Corporation Shareholders’ Equity Excluding Goodwill1	$	1,296.9		$	1,381.2		$	1,460.4		$	1,554.6		$	1,676.3		$	1,818.9		$	2,026.2
Rolling 12 Months Return on Average Kemper Corporation Shareholders’ Equity Excluding Goodwill (5-point Average)1	(29.1)		%	(22.1)		%	(19.2)		%	(18.4)		%	(19.7)		%	(18.4)		%	(16.2)		%

Return on Kemper Corporation Shareholders’ Equity Excluding Net Unrealized Losses on Fixed Maturities and Changes in the Discount Rate on Future Life Policyholder Benefits1
Denominator (5-point Average)
5-point Average Kemper Corporation Shareholders’ Equity Excluding Net Unrealized Losses on Fixed Maturities and Changes in the Discount Rate on Future Life Policyholder Benefits1	$	3,044.9		$	3,136.2		$	3,222.2		$	3,304.2		$	3,392.5		$	3,488.2		$	3,601.3
Rolling 12 Months Return on Average Kemper Corporation Shareholders’ Equity Excluding Net Unrealized Losses on Fixed Maturities and Changes in the Discount Rate on Future Life Policyholder Benefits (5-point Average)1	(12.4)		%	(9.7)		%	(8.7)		%	(8.7)		%	(9.8)		%	(9.6)		%	(9.1)		%


Kemper Corporation Capital Metrics (Dollars and Shares in Millions, Except Per Share Amounts) (Unaudited)
	Sep 30, 2023			Jun 30, 2023			Mar 31, 2023			Dec 31, 2022			Sep 30, 2022			Jun 30, 2022			Mar 31, 2022

Return on Kemper Corporation Shareholders’ Equity Excluding Net Unrealized Losses on Fixed Maturities, Changes in the Discount Rate on Future Life Policyholder Benefits, and Goodwill1
Denominator (5-point Average)
5-point Average Kemper Corporation Shareholders’ Equity Excluding Net Unrealized Losses on Fixed Maturities, Changes in the Discount Rate on Future Life Policyholder Benefits and Goodwill1	$	1,764.7		$	1,843.7		$	1,917.5		$	1,997.1		$	2,083.1		$	2,176.2		$	2,328.9
Rolling 12 Months Return on Average Kemper Corporation Shareholders’ Equity Excluding Net Unrealized Losses on Fixed Maturities, Changes in the Discount Rate on Future Life Policyholder Benefits and Goodwill (5-point Average)1	(21.4)		%	(16.6)		%	(14.6)		%	(14.4)		%	(15.9)		%	(15.4)		%	(14.1)		%
1 Non-GAAP financial measure. See definitions beginning on page 31.

Debt and Total Capitalization
Debt	$	1,388.6		$	1,388.1		$	1,387.5		$	1,386.9		$	1,386.4		$	1,385.8		$	1,385.2
Kemper Corporation Shareholders’ Equity	2,361.3			2,512.2			2,646.9			2,670.6			2,694.5			2,844.1			2,969.2
Total Capitalization	$	3,749.9		$	3,900.3		$	4,034.4		$	4,057.5		$	4,080.9		$	4,229.9		$	4,354.4
Ratio of Debt to Kemper Corporation Shareholders’ Equity	58.8		%	55.3		%	52.4		%	51.9		%	51.5		%	48.7		%	46.7		%
Ratio of Debt to Total Capitalization	37.0		%	35.6		%	34.4		%	34.2		%	34.0		%	32.8		%	31.8		%

Debt	$	1,388.6		$	1,388.1		$	1,387.5		$	1,386.9		$	1,386.4		$	1,385.8		$	1,385.2

Kemper Corporation Shareholders’ Equity	$	2,361.3		$	2,512.2		$	2,646.9		$	2,670.6		$	2,694.5		$	2,844.1		$	2,969.2
Less: Accumulated Other Comprehensive Loss	(473.4)			(480.8)			(454.7)			(514.9)			(573.8)			(509.4)			(467.8)
Kemper Corporation Shareholders’ Equity Excluding Accumulated Other Comprehensive Loss	$	2,834.7		$	2,993.0		$	3,101.6		$	3,185.5		$	3,268.3		$	3,353.5		$	3,437.0
Total Capitalization Excluding Accumulated Other Comprehensive Loss	$	4,223.3		$	4,381.1		$	4,489.1		$	4,572.4		$	4,654.7		$	4,739.3		$	4,822.2
Ratio of Debt to Kemper Corporation Shareholders’ Equity Excluding Accumulated Other Comprehensive Loss	49.0		%	46.4		%	44.7		%	43.5		%	42.4		%	41.3		%	40.3		%
Ratio of Debt to Total Capitalization Excluding Accumulated Other Comprehensive Loss	32.9		%	31.7		%	30.9		%	30.3		%	29.8		%	29.2		%	28.7		%




















Parent Company Liquidity3
Kemper Holding Company Cash and Investments1	$	153.9		$	220.3		$	240.6		$	417.6		$	449.8		$	275.9		$	318.3
Borrowings Available Under Credit Agreement	376.0			460.0			520.0			600.0			600.0			600.0			600.0
Parent Company Liquidity	$	529.9		$	680.3		$	760.6		$	1,017.6		$	1,049.8		$	875.9		$	918.3

Capital Returned to Shareholders
Cash Dividends Paid 2	$	20.2		$	20.2		$	19.4		$	20.1		$	20.1		$	20.6		$	19.6

1 Includes Kemper's direct non-insurance subsidiaries
2 Three Months Ended
3 Excludes borrowings available from subsidiaries

Kemper Corporation

Debt Outstanding, FHLB Advances and Ratings

(Dollars in Millions)

(Unaudited)


	Sep 30, 2023		Jun 30, 2023		Mar 31, 2023		Dec 31, 2022		Sep 30, 2022		Jun 30, 2022		Mar 31, 2022
Kemper Corporation:



Senior Notes at Amortized Cost:

4.350% Senior Notes due February 15, 2025	$	449.6	$	449.5	$	449.4	$	449.3	$	449.3	$	449.2	$	449.1
2.400% Senior Notes due September 30, 2030	396.9		396.8		396.7		396.6		396.5		396.4		396.3
3.800% Senior Notes due 2032	395.8		395.7		395.6		395.5		395.3		395.2		395.1
5.875% Fixed-Rate Reset Junior Subordinated Debentures Due 2062 at Amortized Cost	146.3		146.1		145.8		145.5		145.3		145.0		144.7
Long-term Debt Outstanding	$	1,388.6	$	1,388.1	$	1,387.5	$	1,386.9	$	1,386.4	$	1,385.8	$	1,385.2

Federal Home Loan Bank Advances to Insurance Subsidiaries:
Reported as Policyholder Contract Liabilities:

Federal Home Loan Bank of Chicago	$	557.4	$	601.0	$	601.0	$	601.0	$	602.6	$	602.8	$	553.1
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-

Kemper Corporation

Segment Revenues

(Dollars in Millions)

(Unaudited)


	Three Months Ended														Nine Months Ended
	Sep 30, 2023		Jun 30, 2023		Mar 31, 2023		Dec 31, 2022		Sep 30, 2022		Jun 30, 2022		Mar 31, 2022			Sep 30, 2023		Sep 30, 2022
Revenues:
Specialty Property & Casualty Insurance:
Earned Premiums:
Personal Automobile	$	724.0	$	766.6	$	787.9	$	830.4	$	858.8	$	905.8	$	901.7		$	2,278.5	$	2,666.3
Commercial Automobile	166.4		165.7		156.3		151.2		140.7		137.9		119.9			488.4		398.5
Total Specialty Property & Casualty Insurance Earned Premiums	890.4		932.3		944.2		981.6		999.5		1,043.7		1,021.6			2,766.9		3,064.8
Net Investment Income	42.7		44.5		38.5		37.9		33.9		34.0		34.9			125.7		102.8
Change in Value of Alternative Energy Partnership Investments	0.5		0.4		0.4		0.7		0.3		(2.5)		(8.4)			1.3		(10.6)
Other Income	1.6		0.7		0.9		1.0		2.3		1.0		1.7			3.2		5.0
Total Specialty Property & Casualty Insurance Revenues	935.2		977.9		984.0		1,021.2		1,036.0		1,076.2		1,049.8			2,897.1		3,162.0
Life Insurance:
Earned Premiums:
Life	84.9		84.8		82.2		99.0		84.3		86.8		82.7			251.9		253.8
Accident and Health	5.8		5.8		5.9		31.4		45.9		45.1		45.8			17.5		136.8
Property	11.4		11.6		11.2		12.2		11.9		12.1		14.3			34.2		38.3
Total Life Insurance Earned Premiums	102.1		102.2		99.3		142.6		142.1		144.0		142.8			303.6		428.9
Net Investment Income	49.4		47.1		49.8		52.6		52.6		61.9		49.4			146.3		163.9
Change in Value of Alternative Energy Partnership Investments	0.2		0.2		0.2		0.3		0.1		(1.3)		(4.4)			0.6		(5.6)
Other (Loss) Income	(0.1)		0.1		(0.4)		0.2		—		(0.8)		—			(0.4)		(0.8)
Total Life Insurance Revenues	151.6		149.6		148.9		195.7		194.8		203.8		187.8			450.1		586.4
Total Segment Revenues	1,086.8		1,127.5		1,132.9		1,216.9		1,230.8		1,280.0		1,237.6			3,347.2		3,748.4
Income (Loss) from Change in Fair Value of Equity and Convertible Securities	2.8		2.4		1.7		—		(11.2)		(40.5)		(28.2)			6.9		(79.9)
Net Realized Investment (Losses) Gains	(30.3)		(14.4)		6.4		3.9		(12.1)		11.0		1.5			(38.3)		0.4
Impairment (Losses) Gains	(1.1)		(0.9)		2.1		(3.7)		(8.3)		(4.9)		(8.9)			0.1		(22.1)
Non-Core Operations	138.0		145.7		148.0		154.5		161.1		160.7		164.2			431.7		486.0
Other	3.2		2.5		3.7		3.0		1.2		11.4		3.9			9.4		16.5









Total Revenues	$	1,199.4	$	1,262.8	$	1,294.8	$	1,374.6	$	1,361.5	$	1,417.7	$	1,370.1		$	3,757.0	$	4,149.3

Kemper Corporation

Segment Adjusted Operating Results

(Dollars in Millions)

(Unaudited)


	Three Months Ended														Nine Months Ended
	Sep 30, 2023		Jun 30, 2023		Mar 31, 2023		Dec 31, 2022		Sep 30, 2022		Jun 30, 2022		Mar 31, 2022		Sep 30, 2023		Sep 30, 2022
Segment Adjusted Operating (Loss) Income:
Specialty Property & Casualty Insurance	$	(43.2)	$	(15.0)	$	(74.7)	$	(46.5)	$	(39.2)	$	(51.0)	$	(60.2)	$	(132.9)	$	(150.4)
Life Insurance	17.5		10.1		14.8		26.5		15.6		23.9		12.0		42.4		51.5
Total Segment Adjusted Operating Loss	(25.7)		(4.9)		(59.9)		(20.0)		(23.6)		(27.1)		(48.2)		(90.5)		(98.9)

Other	(13.3)		(15.3)		(12.9)		(15.5)		(16.6)		(1.6)		(14.0)		(41.5)		(32.2)
Corporate and Other Adjusted Operating Loss	(13.3)		(15.3)		(12.9)		(15.5)		(16.6)		(1.6)		(14.0)		(41.5)		(32.2)
Adjusted Consolidated Operating Loss	(39.0)		(20.2)		(72.8)		(35.5)		(40.2)		(28.7)		(62.2)		(132.0)		(131.1)
Income From:
Change in Fair Value of Equity and Convertible Securities	2.8		2.4		1.7		—		(11.2)		(40.5)		(28.2)		6.9		(79.9)
Net Realized Investment (Losses) Gains	(30.3)		(14.4)		6.4		3.9		(12.1)		11.0		1.5		(38.3)		0.4
Impairment (Losses) Gains	(1.1)		(0.9)		2.1		(3.7)		(8.3)		(4.9)		(8.9)		0.1		(22.1)
Acquisition and Disposition Related Transaction, Integration, Restructuring and Other Costs	(43.3)		(29.5)		(29.1)		(35.6)		(12.7)		(9.9)		(4.7)		(101.9)		(27.3)
Debt Extinguishment, Pension Settlement and Other Charges	(70.2)		—		—		—		—		—		(3.7)		(70.2)		(3.7)
Goodwill Impairment Charge	—		(49.6)		—		—		—		—		—		(49.6)		—
Non-Core Operations	(9.6)		(3.7)		(12.2)		(2.0)		(3.3)		(21.6)		(9.5)		(25.5)		(34.4)
Loss before Income Taxes attributable to Kemper Corporation	$	(190.7)	$	(115.9)	$	(103.9)	$	(72.9)	$	(87.8)	$	(94.6)	$	(115.7)	$	(410.5)	$	(298.1)
Loss before Income Taxes Noncontrolling Interest	(0.1)		—		—		—		—		—		—		(0.1)		—
Loss before Income Taxes	$	(190.8)	$	(115.9)	$	(103.9)	$	(72.9)	$	(87.8)	$	(94.6)	$	(115.7)	$	(410.6)	$	(298.1)

Segment Adjusted Net Operating (Loss) Income:
Specialty Property & Casualty Insurance	$	(33.2)	$	(10.8)	$	(58.4)	$	(35.1)	$	(28.7)	$	(38.9)	$	(44.7)	$	(102.4)	$	(112.3)
Life Insurance	14.7		8.9		13.2		23.0		14.0		20.2		11.6		36.8		45.8
Total Segment Adjusted Net Operating Loss	(18.5)		(1.9)		(45.2)		(12.1)		(14.7)		(18.7)		(33.1)		(65.6)		(66.5)
Corporate and Other Adjusted Net Operating Loss From:


Other	(9.4)		(12.3)		(10.5)		(11.4)		(12.3)		(1.7)		(12.4)		(32.2)		(26.4)
Corporate and Other Adjusted Net Operating Loss	(9.4)		(12.3)		(10.5)		(11.4)		(12.3)		(1.7)		(12.4)		(32.2)		(26.4)
Adjusted Consolidated Net Operating Loss	(27.9)		(14.2)		(55.7)		(23.5)		(27.0)		(20.4)		(45.5)		(97.8)		(92.9)
Net Income (Loss) From:
Change in Fair Value of Equity and Convertible Securities	2.3		1.9		1.3		—		(8.8)		(32.0)		(22.3)		5.5		(63.1)
Net Realized Investment (Losses) Gains	(22.9)		(12.5)		5.1		3.1		(9.6)		8.7		1.2		(30.3)		0.3
Impairment (Losses) Gains	(0.8)		(0.8)		1.7		(2.9)		(6.6)		(3.9)		(7.0)		0.1		(17.5)
Acquisition and Disposition Related Transaction, Integration, Restructuring and Other Costs	(34.2)		(23.3)		(23.0)		(29.1)		(20.7)		(7.8)		(3.7)		(80.5)		(32.2)
Debt Extinguishment, Pension Settlement and Other Charges	(55.5)		—		—		—		—		—		(2.9)		(55.5)		(2.9)
Goodwill Impairment Charge	—		(45.5)		—		—		—		—		—		(45.5)		—
Non-Core Operations	(7.3)		(2.7)		(9.5)		(0.9)		(2.1)		(16.8)		(6.1)		(19.5)		(25.0)
Net Loss attributable to Kemper Corporation	$	(146.3)	$	(97.1)	$	(80.1)	$	(53.3)	$	(74.8)	$	(72.2)	$	(86.3)	$	(323.5)	$	(233.3)
Net Loss Noncontrolling Interest	(0.1)		—		—		—		—		—		—		(0.1)		—
Net Loss	$	(146.4)	$	(97.1)	$	(80.1)	$	(53.3)	$	(74.8)	$	(72.2)	$	(86.3)	$	(323.6)	$	(233.3)

Kemper Corporation

Catastrophe Frequency and Severity

(Dollars in Millions)

(Unaudited)


	Nine Months Ended September 30, 2023
	Specialty Property & Casualty Insurance Segment			Life Insurance Segment			Non-Core Operations			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	56	$	26.6	41	$	1.9	61	$	52.3	61	$	74.6
$5 - $10	1	5.4		—	—		—	—		2	11.6
$10 - $15	—	—		—	—		—	—		—	—
$15 - $20	—	—		—	—		—	—		—	—
$20 - $25	—	—		—	—		—	—		—	—
Greater Than $25	—	—		—	—		—	—		—	—
Total	57	$	32.0	41	$	1.9	61	$	52.3	63	$	86.2


	Nine Months Ended September 30, 2022
	Specialty Property & Casualty Insurance Segment			Life Insurance Segment			Non-Core Operations			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	39	$	9.5	32	$	2.4	49	$	45.7	49	$	54.0
$5 - $10	—	—		—	—		—	—		—	—
$10 - $15	1	13.6		—	—		—	—		—	—
$15 - $20	—	—		—	—		—	—		1	17.2
$20 - $25	—	—		—	—		—	—		—	—
Greater Than $25	—	—		—	—		—	—		—	—
Total	40	$	23.1	32	$	2.4	49	$	45.7	50	$	71.2


1 Current accident year net incurred catastrophe Losses and LAE only

Kemper Corporation

Catastrophe Frequency and Severity (continued)

(Dollars in Millions)

(Unaudited)


	Three Months Ended September 30, 2023
	Specialty Property & Casualty Insurance Segment			Life Insurance Segment			Non-Core Operations			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	18	$	6.2	12	$	0.5	20	$	14.1	22	$	20.8
$5 - $10	—	—		—	—		—	—		—	—
$10 - $15	—	—		—	—		—	—		—	—
$15 - $20	—	—		—	—		—	—		—	—
$20 - $25	—	—		—	—		—	—		—	—
Greater Than $25	—	—		—	—		—	—		—	—
Total	18	$	6.2	12	$	0.5	20	$	14.1	22	$	20.8


	Three Months Ended September 30, 2022
	Specialty Property & Casualty Insurance Segment			Life Insurance Segment			Non-Core Operations			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	12	$	1.2	7	$	1.4	16	$	10.8	15	$	9.8
$5 - $10	—	—		—	—		—	—		—	—
$10 - $15	1	13.6		—	—		—	—		—	—
$15 - $20	—	—		—	—		—	—		1	17.2
$20 - $25	—	—		—	—		—	—		—	—
Greater Than $25	—	—		—	—		—	—		—	—
Total	13	$	14.8	7	$	1.4	16	$	10.8	16	$	27.0


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																					Nine Months Ended
	Sep 30, 2023			Jun 30, 2023			Mar 31, 2023			Dec 31, 2022			Sep 30, 2022			Jun 30, 2022			Mar 31, 2022				Sep 30, 2023			Sep 30, 2022
Results of Operations
Net Premiums Written	$	733.0		$	830.6		$	1,022.1		$	922.3		$	968.5		$	1,019.9		$	1,023.7			$	2,585.7		$	3,012.1

Total Specialty P&C:
Personal Automobile	724.0			766.6			787.9			830.4			858.8			905.8			901.7				2,278.5			2,666.3
Commercial Automobile	166.4			165.7			156.3			151.2			140.7			137.9			119.9				488.4			398.5
Earned Premium	$	890.4		$	932.3		$	944.2		$	981.6		$	999.5		$	1,043.7		$	1,021.6			$	2,766.9		$	3,064.8

Net Investment Income	42.7			44.5			38.5			37.9			33.9			34.0			34.9				125.7			102.8
Change in Value of Alternative Energy Partnership Investments	0.5			0.4			0.4			0.7			0.3			(2.5)			(8.4)				1.3			(10.6)
Other Income	1.6			0.7			0.9			1.0			2.3			1.0			1.7				3.2			5.0
Total Revenues	935.2			977.9			984.0			1,021.2			1,036.0			1,076.2			1,049.8				2,897.1			3,162.0
Incurred Losses and LAE related to:
Current Year:
Non-catastrophe Losses and LAE	712.1			763.9			825.4			859.3			868.0			930.2			911.7				2,301.4			2,709.9
Catastrophe Losses and LAE	6.2			17.4			8.4			(0.1)			14.8			6.2			2.1				32.0			23.1
Prior Years:
Non-catastrophe Losses and LAE	78.8			25.0			31.6			10.2			(6.6)			(14.4)			(3.8)				135.4			(24.8)
Catastrophe Losses and LAE	(1.0)			(0.9)			(0.5)			(0.1)			0.2			(0.2)			0.7				(2.4)			0.7
Total Incurred Losses and LAE	796.1			805.4			864.9			869.3			876.4			921.8			910.7				2,466.4			2,708.9
Insurance Expenses	182.3			187.5			193.8			198.4			198.8			205.4			199.3				563.6			603.5

Segment Adjusted Operating Loss	(43.2)			(15.0)			(74.7)			(46.5)			(39.2)			(51.0)			(60.2)				(132.9)			(150.4)
Income Tax Benefit	10.0			4.2			16.3			11.4			10.5			12.1			15.5				30.5			38.1
Total Segment Adjusted Net Operating Loss	$	(33.2)		$	(10.8)		$	(58.4)		$	(35.1)		$	(28.7)		$	(38.9)		$	(44.7)			$	(102.4)		$	(112.3)
Ratios Based On Earned Premiums
Current Year Non-catastrophe Losses and LAE Ratio	80.0		%	81.9		%	87.5		%	87.6		%	86.9		%	89.1		%	89.2		%		83.1		%	88.4		%
Current Year Catastrophe Losses and LAE Ratio	0.7			1.9			0.9			—			1.5			0.6			0.2				1.2			0.8
Prior Years Non-catastrophe Losses and LAE Ratio	8.8			2.7			3.3			1.0			(0.7)			(1.4)			(0.4)				4.9			(0.8)
Prior Years Catastrophe Losses and LAE Ratio	(0.1)			(0.1)			(0.1)			—			—			—			0.1				(0.1)			—
Total Incurred Loss and LAE Ratio	89.4			86.4			91.6			88.6			87.7			88.3			89.1				89.1			88.4
Insurance Expense Ratio	20.5			20.1			20.5			20.2			19.9			19.7			19.5				20.4			19.7
Combined Ratio	109.9		%	106.5		%	112.1		%	108.8		%	107.6		%	108.0		%	108.6		%		109.5		%	108.1		%
Underlying Combined Ratio 1
Current Year Non-catastrophe Losses and LAE Ratio	80.0		%	81.9		%	87.5		%	87.6		%	86.9		%	89.1		%	89.2		%		83.1		%	88.4		%
Insurance Expense Ratio	20.5			20.1			20.5			20.2			19.9			19.7			19.5				20.4			19.7
Underlying Combined Ratio	100.5		%	102.0		%	108.0		%	107.8		%	106.8		%	108.8		%	108.7		%		103.5		%	108.1		%
Non-GAAP Measure Reconciliation
Combined Ratio as Reported	109.9		%	106.5		%	112.1		%	108.8		%	107.6		%	108.0		%	108.6		%		109.5		%	108.1		%
Less:
Current Year Catastrophe Losses and LAE Ratio	0.7			1.9			0.9			—			1.5			0.6			0.2				1.2			0.8
Prior Years Non-catastrophe Losses and LAE Ratio	8.8			2.7			3.3			1.0			(0.7)			(1.4)			(0.4)				4.9			(0.8)
Prior Years Catastrophe Losses and LAE Ratio	(0.1)			(0.1)			(0.1)			—			—			—			0.1				(0.1)			—
Underlying Combined Ratio	100.5		%	102.0		%	108.0		%	107.8		%	106.8		%	108.8		%	108.7		%		103.5		%	108.1		%
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)


	Sep 30, 2023		Jun 30, 2023		Mar 31, 2023		Dec 31, 2022		Sep 30, 2022		Jun 30, 2022		Mar 31, 2022
Insurance Reserves:
Non-Standard Automobile	$	1,761.6	$	1,741.4	$	1,805.6	$	1,875.8	$	1,857.0	$	1,915.2	$	1,952.3
Commercial Automobile	570.3		530.8		491.4		445.3		417.8		385.9		356.5
Insurance Reserves	$	2,331.9	$	2,272.2	$	2,297.0	$	2,321.1	$	2,274.8	$	2,301.1	$	2,308.8
Insurance Reserves:
Loss and Allocated LAE Reserves:
Case and Allocated LAE	$	1,048.0	$	1,061.7	$	1,094.8	$	1,099.9	$	1,110.7	$	1,151.0	$	1,166.0
Incurred but Not Reported	1,107.7		1,036.7		1,027.0		1,041.2		968.2		940.4		934.0
Total Loss Reserves	2,155.7		2,098.4		2,121.8		2,141.1		2,078.9		2,091.4		2,100.0
Unallocated LAE Reserves	176.2		173.8		175.2		180.0		195.9		209.7		208.8
Insurance Reserves	$	2,331.9	$	2,272.2	$	2,297.0	$	2,321.1	$	2,274.8	$	2,301.1	$	2,308.8

Kemper Corporation

Specialty Property & Casualty Insurance Segment

Personal Automobile Insurance - Results of Operations and Selected Financial Information

(Dollars in Millions)

(Unaudited)


	Three Months Ended																					Nine Months Ended
	Sep 30, 2023			Jun 30, 2023			Mar 31, 2023			Dec 31, 2022			Sep 30, 2022			Jun 30, 2022			Mar 31, 2022				Sep 30, 2023			Sep 30, 2022
Results of Operations
Net Premiums Written	$	583.9		$	687.4		$	842.4		$	762.8		$	805.2		$	852.3		$	884.8			$	2,113.7		$	2,542.3

Earned Premiums	$	724.0		$	766.6		$	787.9		$	830.4		$	858.8		$	905.8		$	901.7			$	2,278.5		$	2,666.3
Net Investment Income	32.5			33.8			29.9			29.7			26.5			26.6			27.2				96.2			80.3
Change in Value of Alternative Energy Partnership Investments	0.4			0.3			0.3			0.5			0.3			(1.8)			(6.0)				1.0			(7.5)
Other Income	1.6			0.7			0.9			1.0			2.3			1.0			1.7				3.2			5.0
Total Revenues	758.5			801.4			819.0			861.6			887.9			931.6			924.6				2,378.9			2,744.1
Incurred Losses and LAE related to:
Current Year:
Non-catastrophe Losses and LAE	583.5			638.7			697.6			739.8			757.8			828.6			827.7				1,919.8			2,414.1
Catastrophe Losses and LAE	5.0			15.0			7.7			(0.2)			13.1			5.8			2.0				27.7			20.9
Prior Years:
Non-catastrophe Losses and LAE	71.8			18.0			23.4			14.1			(6.7)			(16.5)			(9.0)				113.2			(32.2)
Catastrophe Losses and LAE	(0.9)			(0.9)			(0.5)			(0.1)			0.1			(0.2)			0.7				(2.3)			0.6
Total Incurred Losses and LAE	659.4			670.8			728.2			753.6			764.3			817.7			821.4				2,058.4			2,403.4
Insurance Expenses	155.3			157.1			162.0			172.2			172.9			179.7			177.3				474.4			529.9

Adjusted Operating Loss	(56.2)			(26.5)			(71.2)			(64.2)			(49.3)			(65.8)			(74.1)				(153.9)			(189.2)
Income Tax Benefit	12.4			6.3			15.5			14.7			12.3			14.9			17.7				34.2			44.9
Total Product Line Adjusted Net Operating Loss	$	(43.8)		$	(20.2)		$	(55.7)		$	(49.5)		$	(37.0)		$	(50.9)		$	(56.4)			$	(119.7)		$	(144.3)
Ratios Based On Earned Premiums
Current Year Non-catastrophe Losses and LAE Ratio	80.6		%	83.3		%	88.5		%	89.1		%	88.3		%	91.5		%	91.8		%		84.2		%	90.5		%
Current Year Catastrophe Losses and LAE Ratio	0.7			2.0			1.0			—			1.5			0.6			0.2				1.2			0.8
Prior Years Non-catastrophe Losses and LAE Ratio	9.9			2.3			3.0			1.7			(0.8)			(1.8)			(1.0)				5.0			(1.2)
Prior Years Catastrophe Losses and LAE Ratio	(0.1)			(0.1)			(0.1)			—			—			—			0.1				(0.1)			—
Total Incurred Loss and LAE Ratio	91.1			87.5			92.4			90.8			89.0			90.3			91.1				90.3			90.1
Insurance Expense Ratio	21.5			20.5			20.6			20.7			20.1			19.8			19.7				20.8			19.9
Combined Ratio	112.6		%	108.0		%	113.0		%	111.5		%	109.1		%	110.1		%	110.8		%		111.1		%	110.0		%
Underlying Combined Ratio 1
Current Year Non-catastrophe Losses and LAE Ratio	80.6		%	83.3		%	88.5		%	89.1		%	88.3		%	91.5		%	91.8		%		84.2		%	90.5		%
Insurance Expense Ratio	21.5			20.5			20.6			20.7			20.1			19.8			19.7				20.8			19.9
Underlying Combined Ratio	102.1		%	103.8		%	109.1		%	109.8		%	108.4		%	111.3		%	111.5		%		105.0		%	110.4		%
Non-GAAP Measure Reconciliation
Combined Ratio	112.6		%	108.0		%	113.0		%	111.5		%	109.1		%	110.1		%	110.8		%		111.1		%	110.0		%
Less:
Current Year Catastrophe Losses and LAE Ratio	0.7			2.0			1.0			—			1.5			0.6			0.2				1.2			0.8
Prior Years Non-catastrophe Losses and LAE Ratio	9.9			2.3			3.0			1.7			(0.8)			(1.8)			(1.0)				5.0			(1.2)
Prior Years Catastrophe Losses and LAE Ratio	(0.1)			(0.1)			(0.1)			—			—			—			0.1				(0.1)			—
Underlying Combined Ratio	102.1		%	103.8		%	109.1		%	109.8		%	108.4		%	111.3		%	111.5		%		105.0		%	110.4		%
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																					Nine Months Ended
	Sep 30, 2023			Jun 30, 2023			Mar 31, 2023			Dec 31, 2022			Sep 30, 2022			Jun 30, 2022			Mar 31, 2022				Sep 30, 2023			Sep 30, 2022
Results of Operations
Net Premiums Written	$	149.1		$	143.2		$	179.7		$	159.5		$	163.3		$	167.6		$	138.9			$	472.0		$	469.8

Earned Premiums	$	166.4		$	165.7		$	156.3		$	151.2		$	140.7		$	137.9		$	119.9			$	488.4		$	398.5
Net Investment Income	10.2			10.7			8.6			8.2			7.4			7.4			7.7				29.5			22.5
Change in Value of Alternative Energy Partnership Investments	0.1			0.1			0.1			0.2			—			(0.7)			(2.4)				0.3			(3.1)

Total Revenues	176.7			176.5			165.0			159.6			148.1			144.6			125.2				518.2			417.9
Incurred Losses and LAE related to:
Current Year:
Non-catastrophe Losses and LAE	128.6			125.2			127.8			119.5			110.2			101.6			84.0				381.6			295.8
Catastrophe Losses and LAE	1.2			2.4			0.7			0.1			1.7			0.4			0.1				4.3			2.2
Prior Years:
Non-catastrophe Losses and LAE	7.0			7.0			8.2			(3.9)			0.1			2.1			5.2				22.2			7.4
Catastrophe Losses and LAE	(0.1)			—			—			—			0.1			—			—				(0.1)			0.1
Total Incurred Losses and LAE	136.7			134.6			136.7			115.7			112.1			104.1			89.3				408.0			305.5
Insurance Expenses	27.0			30.4			31.8			26.2			25.9			25.7			22.0				89.2			73.6

Adjusted Operating Income (Loss)	13.0			11.5			(3.5)			17.7			10.1			14.8			13.9				21.0			38.8
Income Tax (Expense) Benefit	(2.4)			(2.1)			0.8			(3.3)			(1.8)			(2.8)			(2.2)				(3.7)			(6.8)
Total Product Line Adjusted Net Operating Income (Loss)	$	10.6		$	9.4		$	(2.7)		$	14.4		$	8.3		$	12.0		$	11.7			$	17.3		$	32.0
Ratios Based On Earned Premiums
Current Year Non-catastrophe Losses and LAE Ratio	77.4		%	75.6		%	81.9		%	79.0		%	78.3		%	73.7		%	70.1		%		78.1		%	74.2		%
Current Year Catastrophe Losses and LAE Ratio	0.7			1.4			0.4			0.1			1.2			0.3			0.1				0.9			0.6
Prior Years Non-catastrophe Losses and LAE Ratio	4.2			4.2			5.2			(2.6)			0.1			1.5			4.3				4.5			1.9
Prior Years Catastrophe Losses and LAE Ratio	(0.1)			—			—			—			0.1			—			—				—			—
Total Incurred Loss and LAE Ratio	82.2			81.2			87.5			76.5			79.7			75.5			74.5				83.5			76.7
Insurance Expense Ratio	16.2			18.3			20.3			17.3			18.4			18.6			18.3				18.3			18.5
Combined Ratio	98.4		%	99.5		%	107.8		%	93.8		%	98.1		%	94.1		%	92.8		%		101.8		%	95.2		%
Underlying Combined Ratio 1
Current Year Non-catastrophe Losses and LAE Ratio	77.4		%	75.6		%	81.9		%	79.0		%	78.3		%	73.7		%	70.1		%		78.1		%	74.2		%
Insurance Expense Ratio	16.2			18.3			20.3			17.3			18.4			18.6			18.3				18.3			18.5
Underlying Combined Ratio	93.6		%	93.9		%	102.2		%	96.3		%	96.7		%	92.3		%	88.4		%		96.4		%	92.7		%
Non-GAAP Measure Reconciliation
Combined Ratio	98.4		%	99.5		%	107.8		%	93.8		%	98.1		%	94.1		%	92.8		%		101.8		%	95.2		%
Less:
Current Year Catastrophe Losses and LAE Ratio	0.7			1.4			0.4			0.1			1.2			0.3			0.1				0.9			0.6
Prior Years Non-catastrophe Losses and LAE Ratio	4.2			4.2			5.2			(2.6)			0.1			1.5			4.3				4.5			1.9
Prior Years Catastrophe Losses and LAE Ratio	(0.1)			—			—			—			0.1			—			—				—			—
Underlying Combined Ratio	93.6		%	93.9		%	102.2		%	96.3		%	96.7		%	92.3		%	88.4		%		96.4		%	92.7		%
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

Life Insurance Segment

Results of Operations and Selected Financial Information

(Dollars in Millions)

(Unaudited)


	Three Months Ended														Nine Months Ended
	Sep 30, 2023		Jun 30, 2023		Mar 31, 2023		Dec 31, 2022		Sep 30, 2022		Jun 30, 2022		Mar 31, 2022		Sep 30, 2023		Sep 30, 2022
Results of Operations




Earned Premiums	$	102.1	$	102.2	$	99.3	$	142.6	$	142.1	$	144.0	$	142.8	$	303.6	$	428.9
Net Investment Income	49.4		47.1		49.8		52.6		52.6		61.9		49.4		146.3		163.9
Change in Value of Alternative Energy Partnership Investments	0.2		0.2		0.2		0.3		0.1		(1.3)		(4.4)		0.6		(5.6)
Other (Loss) Income	(0.1)		0.1		(0.4)		0.2		—		(0.8)		—		(0.4)		(0.8)
Total Revenues	151.6		149.6		148.9		195.7		194.8		203.8		187.8		450.1		586.4
Policyholders’ Benefits and Incurred Losses and LAE	64.7		68.3		69.9		88.1		88.5		94.3		89.9		202.9		272.7
Insurance Expenses	69.4		71.2		64.2		81.1		90.7		85.6		85.9		204.8		262.2

Segment Adjusted Operating Income	17.5		10.1		14.8		26.5		15.6		23.9		12.0		42.4		51.5
Income Tax Expense	(2.8)		(1.2)		(1.6)		(3.5)		(1.6)		(3.7)		(0.4)		(5.6)		(5.7)
Total Segment Adjusted Net Operating Income	$	14.7	$	8.9	$	13.2	$	23.0	$	14.0	$	20.2	$	11.6	$	36.8	$	45.8

Kemper Corporation

Life Insurance Segment

Results of Operations and Selected Financial Information (continued)

(Dollars in Millions)

(Unaudited)


	Sep 30, 2023		Jun 30, 2023		Mar 31, 2023		Dec 31, 2022		Sep 30, 2022 1		Jun 30, 2022		Mar 31, 2022
Insurance Reserves:
Future Policyholder Benefits	$	3,048.7	$	3,315.2	$	3,346.9	$	3,218.5	$	3,190.2	$	3,503.4	$	4,015.4
Incurred Losses and LAE Reserves:
Life	44.6		44.2		48.3		53.3		55.7		56.7		63.6
Accident and Health	4.8		4.4		4.4		4.3		23.4		25.0		25.2
Property	2.7		2.6		2.7		2.3		3.6		3.1		3.1
Total Incurred Losses and LAE Reserves	52.1		51.2		55.4		59.9		82.7		84.8		91.9
Insurance Reserves	$	3,100.8	$	3,366.4	$	3,402.3	$	3,278.4	$	3,272.9	$	3,588.2	$	4,107.3
1 Includes reserves classified as Held-for-Sale Liabilities on the Condensed Consolidated Balance Sheets.

Kemper Corporation

Life Insurance Segment

Life Insurance - Results of Operations and Selected Financial Information

(Dollars in Millions)

(Unaudited)


	Three Months Ended															Nine Months Ended
		Sep 30, 2023		Jun 30, 2023		Mar 31, 2023		Dec 31, 2022		Sep 30, 2022		Jun 30, 2022		Mar 31, 2022			Sep 30, 2023		Sep 30, 2022
Results of Operations
Earned Premiums		$	84.9	$	84.8	$	82.2	$	99.0	$	84.3	$	86.8	$	82.7		$	251.9	$	253.8
Net Investment Income		49.0		46.6		49.5		51.0		51.0		60.1		47.9			145.1		159.0
Change in Value of Alternative Energy Partnership Investments		0.2		0.2		0.2		0.3		0.1		(1.3)		(4.0)			0.6		(5.2)
Other Income (Loss)		—		—		(0.5)		0.1		(0.1)		(1.1)		—			(0.5)		(1.2)
Total Revenues		134.1		131.6		131.4		150.4		135.3		144.5		126.6			397.1		406.4
Policyholders’ Benefits and Incurred Losses and LAE		59.1		60.0		64.1		70.4		61.5		64.9		60.4			183.2		186.8
Insurance Expenses		59.9		62.3		56.1		58.9		61.7		58.9		58.2			178.3		178.8

Adjusted Operating Income		15.1		9.3		11.2		21.1		12.1		20.7		8.0			35.6		40.8
Income Tax (Expense) Benefit		(2.2)		(1.0)		(0.9)		(2.6)		(0.9)		(3.0)		0.3			(4.1)		(3.6)
Total Product Line Adjusted Net Operating Income		$	12.9	$	8.3	$	10.3	$	18.5	$	11.2	$	17.7	$	8.3		$	31.5	$	37.2

Kemper Corporation

Life Insurance Segment

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

(Dollars in Millions)

(Unaudited)


	Three Months Ended														Nine Months Ended
	Sep 30, 2023		Jun 30, 2023		Mar 31, 2023		Dec 31, 2022		Sep 30, 2022		Jun 30, 2022		Mar 31, 2022			Sep 30, 2023		Sep 30, 2022
Results of Operations
Earned Premiums	$	5.8	$	5.8	$	5.9	$	31.4	$	45.9	$	45.1	$	45.8		$	17.5	$	136.8
Net Investment Income	—		—		—		0.8		0.8		1.0		0.7			—		2.5
Change in Value of Alternative Energy Partnership Investments	—		—		—		—		—		—		(0.1)			—		(0.1)
Other (Loss) Income	(0.1)		0.1		0.1		0.1		0.1		0.3		—			0.1		0.4
Total Revenues	5.7		5.9		6.0		32.3		46.8		46.4		46.4			17.6		139.6
Policyholders’ Benefits and Incurred Losses and LAE	2.5		5.1		2.0		16.2		22.3		24.5		23.5			9.6		70.3
Insurance Expenses	3.4		3.1		2.0		15.8		22.4		20.1		20.8			8.5		63.3
Adjusted Operating (Loss) Income	(0.2)		(2.3)		2.0		0.3		2.1		1.8		2.1			(0.5)		6.0
Income Tax Benefit (Expense)	—		0.5		(0.4)		0.1		(0.4)		(0.4)		(0.4)			0.1		(1.2)
Total Product Line Adjusted Net Operating (Loss) Income	$	(0.2)	$	(1.8)	$	1.6	$	0.4	$	1.7	$	1.4	$	1.7		$	(0.4)	$	4.8

Kemper Corporation

Life Insurance Segment

Property Insurance - Results of Operations and Selected Financial Information

(Dollars in Millions)

(Unaudited)


	Three Months Ended																					Nine Months Ended
	Sep 30, 2023			Jun 30, 2023			Mar 31, 2023			Dec 31, 2022			Sep 30, 2022			Jun 30, 2022			Mar 31, 2022				Sep 30, 2023			Sep 30, 2022
Results of Operations
Earned Premiums	$	11.4		$	11.6		$	11.2		$	12.2		$	11.9		$	12.1		$	14.3			$	34.2		$	38.3
Net Investment Income	0.4			0.5			0.3			0.8			0.8			0.8			0.8				1.2			2.4
Change in Value of Alternative Energy Partnership Investments	—			—			—			—			—			—			(0.3)				—			(0.3)

Total Revenues	11.8			12.1			11.5			13.0			12.7			12.9			14.8				35.4			40.4
Incurred Losses and LAE related to:
Current Year:
Non-catastrophe Losses and LAE	2.2			2.2			2.2			2.0			2.8			3.6			4.1				6.6			10.5
Catastrophe Losses and LAE	0.5			0.8			0.6			(0.6)			1.4			0.6			0.4				1.9			2.4
Prior Years:
Non-catastrophe Losses and LAE	0.1			0.2			0.8			0.1			0.1			0.5			0.6				1.1			1.2
Catastrophe Losses and LAE	0.3			—			0.2			—			0.4			0.2			0.9				0.5			1.5
Total Incurred Losses and LAE	3.1			3.2			3.8			1.5			4.7			4.9			6.0				10.1			15.6
Insurance Expenses	6.1			5.8			6.1			6.4			6.6			6.6			6.9				18.0			20.1
Adjusted Operating Income	2.6			3.1			1.6			5.1			1.4			1.4			1.9				7.3			4.7
Income Tax Expense	(0.6)			(0.7)			(0.3)			(1.0)			(0.3)			(0.3)			(0.3)				(1.6)			(0.9)
Total Product Line Adjusted Net Operating Income	$	2.0		$	2.4		$	1.3		$	4.1		$	1.1		$	1.1		$	1.6			$	5.7		$	3.8
Ratios Based On Earned Premiums
Current Year Non-catastrophe Losses and LAE Ratio	19.3		%	19.0		%	19.6		%	16.4		%	23.5		%	29.7		%	28.7		%		19.2		%	27.4		%
Current Year Catastrophe Losses and LAE Ratio	4.4			6.9			5.4			(4.9)			11.8			5.0			2.8				5.6			6.3
Prior Years Non-catastrophe Losses and LAE Ratio	0.9			1.7			7.1			0.8			0.8			4.1			4.2				3.2			3.1
Prior Years Catastrophe Losses and LAE Ratio	2.6			—			1.8			—			3.4			1.7			6.3				1.5			3.9
Total Incurred Loss and LAE Ratio	27.2			27.6			33.9			12.3			39.5			40.5			42.0				29.5			40.7
Insurance Expense Ratio	53.5			50.0			54.5			52.5			55.5			54.5			48.3				52.6			52.5
Combined Ratio	80.7		%	77.6		%	88.4		%	64.8		%	95.0		%	95.0		%	90.3		%		82.1		%	93.2		%
Underlying Combined Ratio 1
Current Year Non-catastrophe Losses and LAE Ratio	19.3		%	19.0		%	19.6		%	16.4		%	23.5		%	29.7		%	28.7		%		19.2		%	27.4		%
Insurance Expense Ratio	53.5			50.0			54.5			52.5			55.5			54.5			48.3				52.6			52.5
Underlying Combined Ratio	72.8		%	69.0		%	74.1		%	68.9		%	79.0		%	84.2		%	77.0		%		71.8		%	79.9		%
Non-GAAP Measure Reconciliation
Combined Ratio	80.7		%	77.6		%	88.4		%	64.8		%	95.0		%	95.0		%	90.3		%		82.1		%	93.2		%
Less:
Current Year Catastrophe Losses and LAE Ratio	4.4			6.9			5.4			(4.9)			11.8			5.0			2.8				5.6			6.3
Prior Years Non-catastrophe Losses and LAE Ratio	0.9			1.7			7.1			0.8			0.8			4.1			4.2				3.2			3.1
Prior Years Catastrophe Losses and LAE Ratio	2.6			—			1.8			—			3.4			1.7			6.3				1.5			3.9
Underlying Combined Ratio	72.8		%	69.0		%	74.1		%	68.9		%	79.0		%	84.2		%	77.0		%		71.8		%	79.9		%
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														Nine Months Ended
	Sep 30, 2023		Jun 30, 2023		Mar 31, 2023		Dec 31, 2022		Sep 30, 2022		Jun 30, 2022		Mar 31, 2022			Sep 30, 2023		Sep 30, 2022
Insurance Expenses:
Commissions	$	130.8	$	165.3	$	166.9	$	165.7	$	176.3	$	190.9	$	191.9		$	463.0	$	559.1
General Expenses	85.9		74.5		94.2		86.4		93.5		91.4		87.1			254.6		272.0
Premium Taxes	17.8		20.5		23.6		25.3		23.6		25.2		25.4			61.9		74.2
Total Costs Incurred	234.5		260.3		284.7		277.4		293.4		307.5		304.4			779.5		905.3



Net Policy Acquisition Costs Amortized (Deferred)	24.0		5.3		(15.9)		9.9		6.5		(0.5)		(1.7)			13.4		4.3
Amortization of Valuation of Business Acquired ("VOBA")	0.5		0.5		0.5		0.7		0.6		0.7		2.1			1.5		3.4

Insurance Expenses	259.0		266.1		269.3		288.0		300.5		307.7		304.8			794.4		913.0
Loss from Early Extinguishment of Debt	—		—		—		—		—		—		3.7			—		3.7
Interest and Other Expenses:
Interest Expense	14.1		14.0		14.1		13.7		14.3		14.0		12.7			42.2		41.0
Other Expenses:
Acquisition and Disposition Related Transaction, Integration, Restructuring and Other Costs	43.3		29.5		29.1		35.6		12.7		9.9		4.7			101.9		27.3
Pension Settlement Expense	70.2		—		—		—		—		—		—			70.2		—
Other	28.4		34.8		34.2		37.2		36.5		29.6		36.7			97.4		102.8
Other Expenses	141.9		64.3		63.3		72.8		49.2		39.5		41.4			269.5		130.1
Interest and Other Expenses	156.0		78.3		77.4		86.5		63.5		53.5		54.1			311.7		171.1
Goodwill Impairment	—		49.6		—		—		—		—		—			49.6		—
Total Expenses	$	415.0	$	394.0	$	346.7	$	374.5	$	364.0	$	361.2	$	362.6		$	1,155.7	$	1,087.8

Kemper Corporation

Details of Investment Performance

(Dollars in Millions)

(Unaudited)


	Three Months Ended														Nine Months Ended
	Sep 30, 2023		Jun 30, 2023		Mar 31, 2023		Dec 31, 2022		Sep 30, 2022		Jun 30, 2022		Mar 31, 2022			Sep 30, 2023		Sep 30, 2022
Net Investment Income
Interest on Fixed Income Securities	$	86.5	$	87.1	$	86.2	$	81.7	$	76.9	$	72.8	$	68.7		$	259.8	$	218.4
Dividends on Equity Securities Excluding Alternative Investments	1.2		1.2		1.0		2.0		1.1		1.7		1.5			3.4		4.3
Alternative Investments:
Equity Method Limited Liability Investments	4.3		2.8		1.1		3.3		(0.6)		15.3		13.3			8.2		28.0

Limited Liability Investments Included in Equity Securities	5.4		6.3		2.6		7.2		8.8		18.5		7.6			14.3		34.9
Total Alternative Investments	9.7		9.1		3.7		10.5		8.2		33.8		20.9			22.5		62.9
Short-term Investments	6.0		3.6		2.3		2.3		1.1		0.2		0.1			11.9		1.4
Loans to Policyholders	5.1		5.1		5.4		5.2		5.5		5.3		5.5			15.6		16.3
Real Estate	2.3		1.9		2.4		2.5		3.1		2.3		2.2			6.6		7.6
Company-Owned Life Insurance	6.4		7.4		8.8		9.9		9.9		9.8		8.3			22.6		28.0
Other	1.8		5.3		3.0		2.6		1.7		1.7		1.7			10.1		5.1
Total Investment Income	119.0		120.7		112.8		116.7		107.5		127.6		108.9			352.5		344.0
Investment Expenses:
Real Estate	1.7		2.2		2.1		2.1		2.3		1.0		2.5			6.0		5.8
Other Investment Expenses	10.3		12.2		8.9		8.3		7.4		8.1		6.4			31.4		21.9
Total Investment Expenses	12.0		14.4		11.0		10.4		9.7		9.1		8.9			37.4		27.7
Net Investment Income	$	107.0	$	106.3	$	101.8	$	106.3	$	97.8	$	118.5	$	100.0		$	315.1	$	316.3
Net Realized Investment Gains (Losses)
Fixed Maturities:
Gains on Sales	0.8		$	0.4	$	1.1	$	3.6	14.2		$	13.4	$	0.4		$	2.3	$	28.0
Losses on Sales	(1.2)		(6.0)		(3.3)		(4.4)		(23.9)		(2.8)		(0.8)			(10.5)		(27.5)
(Losses) Gains on Hedging Activity	(29.4)		(8.7)		8.4		1.7		(0.3)		0.3		—			(29.7)		—
Equity Securities:
Gains on Sales	0.5		0.1		—		3.1		4.5		0.1		2.0			0.6		6.6
Losses on Sales	(1.1)		(0.1)		—		(0.1)		(6.6)		—		(0.1)			(1.2)		(6.7)






Other Investments:

Gains on Sales	—		—		0.2		—		—		—		—			0.2		—
Losses on Sales	0.1		(0.1)		—		—		—		—		—			—		—

Net Realized Investment (Losses) Gains	$	(30.3)	$	(14.4)	$	6.4	$	3.9	$	(12.1)	$	11.0	$	1.5		$	(38.3)	$	0.4
Net Impairment (Losses) Gains Recognized in Earnings
Fixed Maturities	$	(2.0)	$	—	$	2.1	$	(3.7)	$	(8.3)	$	(4.9)	$	(8.9)		$	0.1	$	(22.1)


Net Impairment (Losses) Gains Recognized in Earnings	$	(2.0)	$	—	$	2.1	$	(3.7)	$	(8.3)	$	(4.9)	$	(8.9)		$	0.1	$	(22.1)

Kemper Corporation

Details of Invested Assets

(Dollars in Millions)

(Unaudited)


	Sep 30, 2023				Dec 31, 2022				Dec 31, 2021
	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	$	487.2	5.8	%	$	528.0	6.0	%	$	637.4	6.1	%
States and Political Subdivisions	1,320.2		15.7		1,568.9		17.8		1,890.1		18.2
Foreign Governments	4.2		—		4.1		—		5.5		0.1
Corporate Securities:
Bonds and Notes	3,394.4		40.3		3,539.4		40.4		4,386.9		42.2
Redeemable Preferred Stocks	7.8		0.1		8.0		0.1		7.4		0.1
Collateralized Loan Obligations	956.2		11.3		953.9		10.9		752.1		7.2
Other Mortgage- and Asset-backed	304.5		3.6		292.5		3.3		307.5		3.0
Total Fixed Maturities Reported at Fair Value	6,474.5		76.8		6,894.8		78.5		7,986.9		76.9
Equity Securities Reported at Fair Value:
Preferred Stocks	31.6		0.4		39.8		0.5		51.8		0.5
Common Stocks	1.2		—		2.1		—		21.8		0.2
Other Equity Interests:
Exchange Traded Funds	7.1		0.1		12.2		0.1		432.0		4.2
Limited Liability Companies and Limited Partnerships	193.5		2.3		189.1		2.2		325.0		3.1
Total Equity Securities Reported at Fair Value	233.4		2.8		243.2		2.8		830.6		8.0
Equity Method Limited Liability Investments	224.1		2.7		217.0		2.5		241.9		2.3
Alternative Energy Partnership Investments	17.2		0.2		16.3		0.2		39.6		0.4

Short-term Investments at Cost which Approximates Fair Value	418.5		5.0		278.4		3.2		284.1		2.7
Company Owned Life Insurance	506.9		6.0		586.5		6.7		448.1		4.3
Loans to Policyholders	281.8		3.3		283.4		3.2		286.2		2.8
Other Investments:
Equity Securities Reported at Modified Cost	33.1		0.4		38.4		0.4		32.3		0.3
Convertible Securities at Fair Value	45.9		0.5		43.3		0.5		46.4		0.5
Real Estate at Depreciated Cost	95.4		1.1		93.6		1.1		94.0		0.9
Mortgage Loans	98.5		1.2		91.1		1.0		96.8		0.9

Other	0.2		—		3.5		—		0.5		—
Total Other Investments	273.1		3.2		269.9		3.0		270.0		2.6
Total Investments	$	8,429.5	100.0	%	$	8,789.5	100.0	%	$	10,387.4	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)


	Sep 30, 2023				Dec 31, 2022				Dec 31, 2021
	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	$	4,638.6	71.6	%	$	4,896.4	71.0	%	$	5,351.6	67.0	%
BBB	1,562.1		24.1		1,687.4		24.5		2,215.1		27.7
BB, B	211.2		3.3		239.7		3.5		331.0		4.2
CCC or Lower	62.6		1.0		71.3		1.0		89.2		1.1
Total Investments in Fixed Maturities	$	6,474.5	100.0	%	$	6,894.8	100.0	%	$	7,986.9	100.0	%
Duration (in Years)
Total Investments in Fixed Maturities	8.1				8.2				8.5

Kemper Corporation

Investment Concentration

(Dollars in Millions)

(Unaudited)


	Sep 30, 2023				Dec 31, 2022				Dec 31, 2021
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	$	2,011.5	23.8	%	$	2,007.5	22.8	%	$	1,996.7	19.2	%
Manufacturing	999.4		11.8		1,085.9		12.4		1,571.0		15.1
Transportation, Communication and Utilities	723.8		8.6		733.7		8.3		815.8		7.9
Services	589.1		7.0		602.4		6.9		617.5		5.9
Mining	165.4		2.0		173.3		2.0		254.3		2.4
Retail Trade	140.9		1.7		165.1		1.9		171.4		1.7
Construction	4.3		0.1		11.7		0.1		13.1		0.1


Other	28.5		0.3		14.2		0.2		14.1		0.1
Total Fair Value of Non-governmental Fixed Maturities	$	4,662.9	55.3	%	$	4,793.8	54.6	%	$	5,453.9	52.4	%


	Sep 30, 2023
Ten Largest Investment Exposures 1	Fair Value		Percent of Total Investments
Fixed Maturities:
States including their Political Subdivisions:
California	$	119.8	1.4	%
Texas	112.1		1.3
Michigan	77.8		0.9
New York	71.1		0.8
Georgia	67.8		0.8
Louisiana	59.4		0.7
Pennsylvania	52.6		0.6
Florida	51.5		0.6
Colorado	45.7		0.5

Missouri	39.5		0.5


Total	$	697.3	8.1	%

1Excluding Investments in U.S. Government and Government Agencies and Authorities at September 30, 2023.

Kemper Corporation

Municipal Bond Securities

(Dollars in Millions)

(Unaudited)


	Sep 30, 2023
	State General Obligation		Political Subdivision General Obligation		Revenue		Total Fair Value		Percent of Total Muni Bond1		Percent of Total Investments1
California	$	8.0	$	111.8	$	—	$	119.8	9.1	%	1.4	%
Texas	9.5		99.4		3.2		112.1		8.4		1.3
Michigan	—		66.8		11.0		77.8		5.9		0.9
New York	11.3		59.8		—		71.1		5.4		0.8
Georgia	3.9		59.8		4.1		67.8		5.1		0.8
Louisiana	4.1		24.2		31.1		59.4		4.4		0.7
Pennsylvania	2.8		49.8		—		52.6		4.0		0.6
Florida	—		51.5		—		51.5		3.9		0.6
Colorado	—		45.7		—		45.7		3.4		0.5
Missouri	1.1		38.4		—		39.5		3.0		0.5
Oregon	2.2		17.4		18.4		38.0		2.9		0.5
Washington	1.3		26.7		5.1		33.1		2.5		0.4
New Mexico	—		31.1		—		31.1		2.4		0.4
Virginia	—		24.4		6.1		30.5		2.3		0.4
Massachusetts	—		25.0		4.9		29.9		2.3		0.4
Indiana	—		29.6		—		29.6		2.2		0.4
Illinois	0.6		28.4		—		29.0		2.2		0.3
Connecticut	—		15.3		12.8		28.1		2.1		0.3
Minnesota	1.0		26.6		—		27.6		2.1		0.3
Ohio	—		26.2		—		26.2		2.0		0.3
Maryland	—		25.4		—		25.4		1.9		0.3
Tennessee	3.2		17.9		—		21.1		1.6		0.3
Oklahoma	—		20.9		—		20.9		1.6		0.2
Mississippi	—		9.6		10.6		20.2		1.5		0.2
Rhode Island	1.5		15.9		—		17.4		1.3		0.2
North Carolina	1.6		15.6		—		17.2		1.3		0.2
District of Columbia	—		14.5		2.7		17.2		1.3		0.2
New Hampshire	0.4		16.2		—		16.6		1.3		0.2
Nebraska	5.7		8.6		—		14.3		1.1		0.2
Arizona	—		13.4		—		13.4		1.0		0.2
Kentucky	—		12.9		—		12.9		1.0		0.2
South Carolina	—		12.8		—		12.8		1.0		0.2
Utah	—		12.8		—		12.8		1.0		0.2
Alabama	—		11.9		—		11.9		0.9		0.1
North Dakota	—		11.8		—		11.8		0.9		0.1
Iowa	—		10.7		—		10.7		0.8		0.1
Montana	—		10.1		—		10.1		0.8		0.1
Hawaii	3.2		2.6		2.8		8.6		0.7		0.1
Maine	—		7.9		—		7.9		0.6		0.1
All Other States	2.4		30.4		3.8		36.6		2.8		0.4
Total	$	63.8	$	1,139.8	$	116.6	$	1,320.2	100.0	%	15.6	%
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	Sep 30, 2023		Sep 30, 2023		Dec 31, 2022
Reported as Equity Method Limited Liability Investments:
Mezzanine Debt	$	45.8	$	123.8	$	114.3
Senior Debt	41.3		21.7		21.6
Distressed Debt	—		8.0		9.4
Secondary Transactions	1.7		8.2		9.3
Leveraged Buyout	0.6		9.9		8.9
Growth Equity	—		1.2		1.2
Real Estate	—		41.6		43.3
Hedge Fund	—		0.1		0.5
Other	—		9.6		8.5
Total Equity Method Limited Liability Investments	89.4		224.1		217.0

Alternative Energy Partnership Investments	—		17.2		16.3

Reported as Other Equity Interests at Fair Value:
Mezzanine Debt	62.8		121.9		106.0
Senior Debt	10.5		25.1		21.9
Distressed Debt	13.0		12.8		12.5
Secondary Transactions	3.1		2.9		3.5
Hedge Funds	—		3.0		18.1
Leveraged Buyout	7.0		21.6		21.6
Growth Equity	6.7		6.1		5.4
Real Estate	0.2		0.1		—
Other	—		—		0.1
Total Reported as Other Equity Interests at Fair Value	103.3		193.5		189.1
Reported as Other Equity Interests at Modified Cost:

Other	—		5.3		8.3
Total Reported as Other Equity Interests at Modified Cost	—		5.3		8.3



Total Investments in Limited Liability Companies and Limited Partnerships	$	192.7	$	440.1	$	430.7

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 and Losses on Fixed Maturities and the Change in Discount Rate on Future Life Policyholder Benefits 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 and losses on fixed income securities and the change in discount rate on future life policyholder benefits 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 and losses on fixed income securities and the change in discount rate on future life policyholder benefits 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 and Losses on Fixed Maturities, the Change in Discount Rate on Future Life Policyholder Benefits 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 and losses on fixed income securities, the change in discount rate on future life policyholder benefits 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 and losses on fixed income securities, the change in discount rate on future life policyholder benefits 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 Loss is an after-tax, non-GAAP financial measure and is computed by excluding from Net Loss the after-tax impact of:

(i) Income (Loss) from Change in Fair Value of Equity and Convertible Securities;

(ii) Net Realized Investment (Losses) Gains;

(iii) Impairment (Losses) Gains;

(iv) Acquisition and Disposition Related Transaction, Integration, Restructuring and Other Costs;

(v) Debt Extinguishment, Pension Settlement and Other Charges;

(vi) Goodwill Impairment Charges;

(vii) Non-Core Operations; and

(viii) 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 Loss. There were no applicable significant non-recurring items that the Company excluded from the calculation of Adjusted Consolidated Net Operating Loss for the three and nine months ended September 30, 2023 or 2022.

The Company believes that Adjusted Consolidated Net Operating 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 Investment (Losses) Gains and Impairment (Losses) Gains 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 and Disposition Related Transaction, Integration, Restructuring and Other 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 Settlement 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

Kemper Corporation

Definitions of Non-GAAP Financial Measures (continued)

process. Goodwill impairment charges are excluded because they are infrequent and non-recurring charges. Non-Core Operations includes the results of our Preferred Insurance business which we expect to fully exit. These results are excluded because they are irrelevant to our ongoing operations and do not qualify for Discontinued Operations under Generally Accepted Accounting Principles ("GAAP"). 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 profitability of the Company’s businesses.

Kemper Corporation

Definitions of Non-GAAP Financial Measures (continued)

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


	Three Months Ended															Nine Months Ended
Dollars in Millions (Unaudited)		Sep 30, 2023		Jun 30, 2023		Mar 31, 2023		Dec 31, 2022		Sep 30, 2022		Jun 30, 2022		Mar 31, 2022		Sep 30, 2023		Sep 30, 2022
Net Loss		$	(146.4)	$	(97.1)	$	(80.1)	$	(53.3)	$	(74.8)	$	(72.2)	$	(86.3)	$	(323.6)	$	(233.3)
Less: Net Loss attributable to Noncontrolling Interest		(0.1)		—		—		—		—		—		—		(0.1)		—
Net Loss attributable to Kemper Corporation		(146.3)		(97.1)		(80.1)		(53.3)		(74.8)		(72.2)		(86.3)		(323.5)		(233.3)
Less Net Income (Loss) From:
Income (Loss) from Change in Fair Value of Equity and Convertible Securities		2.3		1.9		1.3		—		(8.8)		(32.0)		(22.3)		5.5		(63.1)
Net Realized Investment (Losses) Gains		(22.9)		(12.5)		5.1		3.1		(9.6)		8.7		1.2		(30.3)		0.3
Impairment (Losses) Gains		(0.8)		(0.8)		1.7		(2.9)		(6.6)		(3.9)		(7.0)		0.1		(17.5)
Acquisition and Disposition Related Transaction, Integration, Restructuring and Other Costs		(34.2)		(23.3)		(23.0)		(29.1)		(20.7)		(7.8)		(3.7)		(80.5)		(32.2)
Debt Extinguishment, Pension Settlement and Other Charges		(55.5)		—		—		—		—		—		(2.9)		(55.5)		(2.9)
Goodwill Impairment Charge		—		(45.5)		—		—		—		—		—		(45.5)		—
Non-Core Operations		(7.3)		(2.7)		(9.5)		(0.9)		(2.1)		(16.8)		(6.1)		(19.5)		(25.0)
Adjusted Consolidated Net Operating Loss		$	(27.9)	$	(14.2)	$	(55.7)	$	(23.5)	$	(27.0)	$	(20.4)	$	(45.5)	$	(97.8)	$	(92.9)

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


	Three Months Ended														Nine Months Ended
(Unaudited)	Sep 30, 2023		Jun 30, 2023		Mar 31, 2023		Dec 31, 2022		Sep 30, 2022		Jun 30, 2022		Mar 31, 2022		Sep 30, 2023		Sep 30, 2022
Net Loss Per Unrestricted Share attributable to Kemper Corporation	$	(2.28)	$	(1.52)	$	(1.25)	$	(0.84)	$	(1.17)	$	(1.13)	$	(1.36)	$	(5.05)	$	(3.66)
Less Net Income (Loss) Per Unrestricted Share From:
Income (Loss) from Change in Fair Value of Equity and Convertible Securities	0.04		0.03		0.02		—		(0.14)		(0.50)		(0.35)		0.09		(0.99)
Net Realized Investment (Losses) Gains	(0.35)		(0.20)		0.08		0.05		(0.15)		0.13		0.02		(0.47)		—
Impairment (Losses) Gains	(0.01)		(0.02)		0.03		(0.05)		(0.10)		(0.06)		(0.11)		—		(0.27)
Acquisition and Disposition Related Transaction, Integration, Restructuring and Other Costs	(0.54)		(0.36)		(0.36)		(0.46)		(0.32)		(0.12)		(0.06)		(1.26)		(0.50)
Debt Extinguishment, Pension Settlement and Other Charges	(0.87)		—		—		—		—		—		(0.05)		(0.87)		(0.05)
Goodwill Impairment Charge	—		(0.71)		—		—		—		—		—		(0.71)		—
Non-Core Operations	(0.11)		(0.04)		(0.15)		(0.02)		(0.03)		(0.26)		(0.10)		(0.30)		(0.39)
Adjusted Consolidated Net Operating Loss Per Unrestricted Share	$	(0.44)	$	(0.22)	$	(0.87)	$	(0.36)	$	(0.43)	$	(0.32)	$	(0.71)	$	(1.53)	$	(1.46)

Kemper Corporation

Definitions of Non-GAAP Financial Measures (continued)

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.

Earnings Call Presentation – 3Q 2023 Third Quarter 2023 Earnings October 30, 2023

Earnings Call Presentation – 3Q 2023 Preliminary Matters 2 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; • changes in interest rate environment; • supply chain disruption; • product demand and pricing; • effects of governmental and regulatory actions; • litigation outcomes and trends; • 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 presentation. 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.

Earnings Call Presentation – 3Q 2023 Target top quartile value creation for customers, employees and shareholders Leading Insurer Empowering Specialty and Underserved Markets Enabled by a dynamic, diverse and innovative team who act like owners 3 Distribution Have Limited or Unfocused Competition Require Unique Expertise Sizable Market Delivering appropriate and affordable insurance and financial solutions Specialty auto insurance for underserved markets; Latino, Hispanic and urban areas Life insurance for low/modest income customers Market Characteristics Differentiated Capabilities Product SophisticationEase of UseLow-Cost Management 1 Enable Systematic, Sustainable Competitive Advantages (SSCAs) 2 1 Kemper Auto is equivalent to the Specialty Property & Casualty Insurance Segment 2 Kemper Life is equivalent to the Life Insurance Segment

Earnings Call Presentation – 3Q 2023 Third Quarter 2023 Summary 4 Underlying combined ratio improved sequentially as expected Aggressively pursuing profit restoration • Specialty P&C Private Passenger Auto actions: ̶ New business restrictions continue ̶ Filed an additional 6% increase on 13% of the book ̶ California rate approval of ~30 points effective in August; earn-in to accelerate in 4Q’23 and beyond ̶ Reciprocal Exchange established and first policies written • LAE, expense and real estate initiatives in line to meet or exceed planned targets • Preferred P&C2 – wind-down initiated; segment results now reported in Non-Core Operations Actions Taken Profit restoration continues with improvement in underlying results • Net loss attributable to Kemper Corporation of $146 million ($2.28/sh) – includes $56 million ($0.87/sh) related to termination of Kemper’s remaining pension plan obligations • Adjusted consolidated net operating loss1 of $28 million ($0.44/sh) • Specialty P&C underlying combined ratio improved sequentially by 1.5 points to 100.5% ̶ Offset by prior year adverse reserve development of $78 million • Life business continues to produce stable earnings • Total pre-tax current year catastrophe losses of $7 million2 3rd Quarter Results Capital and liquidity positions enable the company to navigate the current environment • Holding company liquidity of approximately $800 million3 remains a source of strength for subsidiaries • Insurance companies are well capitalized Balance Sheet Strength 1 Non-GAAP financial measure; please see reconciliation in appendix on pages 19-25 2 Excludes $14 million of pre-tax catastrophe losses from Kemper Personal Insurance (Preferred P&C) reported within Non-Core Operations | 3 Excludes anticipated fourth quarter $250+ million dividend from Life company to parent

Earnings Call Presentation – 3Q 2023 Third Quarter 2023 Financial Summary 5 Focus remains on restoring business to profitability Continuing to take rate, non-rate and cost structure actions to restore profitability Quarter Ended ($ in millions, except per share amounts) Sep 30, 2023 Sep 30, 2022 Net Loss Attributable to Kemper Corporation – Per Diluted Share $(2.28) $(1.17) Adj. Consolidated Net Operating Loss – Per Diluted Share1 $(0.44) $(0.43) Tangible Book Value – Per Diluted Share1 $24.94 $29.83 Return on Avg. Tangible Common Equity1 (21.4)% (15.9)% Dividends Paid to Shareholders Per Share $0.31 $0.31 Life Face Value of In-Force YoY Growth / (Decline) (0.4)% 0.0% Specialty P&C Earned Premium YoY Growth / (Decline) (11.0)% (2.7)% Specialty P&C PIF YoY Growth / (Decline) (30.6)% (14.2)% 1 Non-GAAP financial measure; please see reconciliation in appendix on pages 19-25

Earnings Call Presentation – 3Q 2023 Specialty P&C Reserve Update 6 Adverse development driven by PIP, Bodily Injury, and Property Damage coverages Specialty P&C1 adverse development of $78 million • Private Passenger Auto adverse development of $71 million related to: ̶ Florida Personal Injury Protection (PIP), mainly from policy periods 2020-2022 o Increased frequency and severity of litigated claims ̶ Bodily Injury and Property Damage loss activity during the second half of 2022 o Extended development patterns o Changes in claim mix and treatment patterns o More claims closing with payment • Commercial Vehicle development of $7 million ̶ Primarily related to Bodily Injury claims Continue to recognize and react to changes in loss patterns 1 Specialty P&C is represented by the Kemper Auto Brand

Earnings Call Presentation – 3Q 2023 Strategic Initiatives Summary 7 Projects proceeding to expectations On track to realize benefits of strategic initiatives 1. Bermuda Optimization: • Anticipate $250+ million in Life dividends to parent in 4Q'23 2. Pension Plan Termination: • Recognized $56 million after-tax non-cash charge to settle remaining pension plan obligations (previously recognized in AOCI) • Reduces tail risk and expenses 3. Preferred P&C¹ Exit: • Wind-down is proceeding as planned; will redeploy greater than $300 million in capital ̶ Anticipate a release of $175+ million of capital by year-end 2024 and additional $100+ million by year- end 2025 4. Streamlining Cost Structure (see page 8) 5. Reciprocal Exchange (see page 9) 1 Preferred P&C is represented by Kemper Personal Insurance

Earnings Call Presentation – 3Q 2023 Streamlining Our Cost Structure 8 Advancing differentiated capabilities to strengthen systematic, sustainable competitive advantages Real estate and enterprise expense initiatives met program objectives; LAE improvements on track 87 117 137 61 150 4Q'22 1Q'23 2Q'23 3Q'23 4Q'23 FY'24-FY'25 Proj. Prog. Total Run Rate Program Savings ($ millions)• Restructuring and integration pre-tax charges of $150 million – $200 million will produce an annualized savings of $150 million or greater • Since its inception, this program has driven total run rate savings of $137 million, and incurred total pre-tax charges of $138 million (Pre-tax, $ in millions) 3Q’23 Run Rate Total Program % Reached R u n R at e S av in gs Loss Adjustment Expense (LAE) Improvements $55 $80 – $120 46% – 69% Enterprise Expense Initiatives (ex-Real Estate & LAE) $68 $60 – $70 97% – 113% Real Estate Optimization $14 $10 140% Total Run Rate Program Savings $137 $150+ 69% – 91% Cumulative Earned on Run Rate Savings $94 Cumulative Associated Charges $138 $150 – $200 69% – 92%

Earnings Call Presentation – 3Q 2023 Reciprocal Exchange 9 The Exchange began writing auto policies in Illinois during the quarter Reciprocal Exchange operational with plans for expansion underway • Reciprocal Exchange structure established and operating • First auto policies written in 3Q’23 • Special topic call on Reciprocal Exchange structure and financial reporting to be held in 1Q’24 Creation Phase Complete • Direct premium / policy issuance underway in Illinois • Exchange reinsurance beginning in 2024 ̶ Reinsuring select new business from existing Kemper legal entities accelerates Exchange premium growth • Additional premium to be directly written on Exchange forms in 2024 and 2025 as products / forms are filed and approved Population Strategy

Earnings Call Presentation – 3Q 2023 Well-Capitalized Insurance Subsidiaries 10 Continued access to significant sources of liquidity Initiatives underway to restore profitability and operating cash flow 23.1% 17.6% 23.2% 24.1% 30.3% 32.9% 2018 2019 2020 2021 2022 3Q'23 Debt-to-Capital 3 Parent Company Liquidity Risk-Based Capital Ratios¹ $540 $660 $700 $704 $918 $667 $101 $207 $733 $234 $418 $154 $641 $867 $1,433 $938 $1,336 $821 2018 2019 2020 2021 2022 3Q'23 (% ) Debt Cash Flow from Operating Activities ($ in m ill io n s) $539 $534 $448 $351 $(210) $(145) 2018 2019 2020 2021 2022 3Q'23 TTM HoldCo Cash & Investments Borrowings Available Under Credit Agreement & from Subs P&C (ex. AACC) Life2 1 3Q’23 Risk-Based Capital Ratios are calculated at the Company Action Level and are estimated; actual RBC levels are likely to differ, but will not be known prior to October 30, 2023 | 2 Life Risk-Based Capital Ratios exclude business ceded to Kemper Bermuda Ltd. (KBL) | 3 Excludes AOCI: closely aligns with rating agencies and post-LDTI implementation ($ in m ill io n s) 410 355 340 355 645 1015 285 365 330 220 240 245 2018 2019 2020 2021 2022 3Q'23

Earnings Call Presentation – 3Q 2023 Diversified Investment Portfolio with Consistent Returns 11 55% 16% 7% 6% 5% 6% 5% Other States/ Munis COLI 72% 24% 3% 1% Diversified and Highly-Rated Portfolio Fixed Maturity Ratings $6.5 Billion A or Higher ≤ CCCB / BB BBB • High-quality and liquid portfolio provides consistent net investment income; 72% of fixed income portfolio rated A or higher • Strong ALM philosophy that mitigates long- term economic and short-term valuation mismatches • 4.6% PTE annualized book yield • New money yields at multi-year highs $90 $95 $98 $97 $97 $8 $11 $4 $9 $10 $98 $106 $102 $106 $107 3Q'22 4Q'22 1Q'23 2Q'23 3Q'23 Core Portfolio Alternative Inv. Portfolio Net Investment Income1 Highlights Corporates Alternatives U.S Gov’t Portfolio Composition2 Pre-Tax Equiv. Annualized Book Yield $8.4 Billion Short Term 1 Non-Core Operations reflects $12, $14, $11, $13, and $13 million related to Preferred P&C in 3Q’22, 4Q’22, 1Q’23, 2Q’23, and 3Q’23, respectively | 2 Other category includes Equity Securities, which excludes $199 million of Other Equity Interests of LPs/LLCs that have been reclassified into Alternative Investments; COLI represents Company Owned Life Insurance 4.2% 4.6% 4.4% 4.5% 4.6% 3Q'22 4Q'22 1Q'23 2Q'23 3Q'23 ($ in m ill io n s)

Earnings Call Presentation – 3Q 2023 ~58% ~57% ~30% Filed Rate Written Rate Earned Rate Specialty Property & Casualty Insurance Segment 12 Underlying combined ratio improved 6.3 points year-over-year and 1.5 points sequentially 106.8 107.8 108.0 102.0 100.5 3Q'22 4Q'22 1Q'23 2Q'23 3Q'23 Underlying Combined Ratio2 (% ) Highlights • Sequential improvement driven by additional earned rate and non-rate actions • Continuing new business underwriting restrictions • Loss trends remain elevated, but have stabilized • Moderate level of CAT activity ̶ $6 million driven by tropical storms and Midwest wind / hail events Metrics ($ in millions) 3Q’23 3Q’22 Change vs. 3Q’22 Earned Premiums $890 $1,000 (11.0)% Underlying Loss & LAE Ratio2 80.0% 86.9% (6.9)pts Expense Ratio 20.5% 19.9% 0.6pts Policies In-Force (000s) 1,334 1,922 (30.6)% Cumulative PPA Rate Activity Since 2Q’211 1 Represents the cumulative weighted average rate impact of actual filings on the total book 2 Non-GAAP financial measure; see reconciliation in appendix on pages 19-25 Committed to reaching target profitability in 2024 despite ongoing dynamic operating environment

Earnings Call Presentation – 3Q 2023 1. Expectations • Ongoing dynamic operating environment • Earned rate in excess of loss trend to drive continued improvement in underlying loss ratio • Business expected to achieve target margins in 2024 • Driving return to profitability while balancing new business production 2. Risks • Material increases in frequency • Unanticipated increases in severity • Abnormal weather / event-risk • Significant changes to loss development patterns Business expected to achieve target margins and reduce new business restrictions in 2024 Specialty P&C Path to Underwriting Profit Overcoming loss cost pressures through rate, non-rate, and expense 13 Benefits from rate, non-rate and expense ctions exceedi g loss trend

Earnings Call Presentation – 3Q 2023 Life Insurance Segment 14 Business trends remain stable; consumer demand remains strong Business continues to generate strong returns on capital and distributable cash flows $102 $117 $99 $102 $102 $52 $52 $50 $47 $49 $154 $169 $149 $149 $151 3Q'22 4Q'22 1Q'23 2Q'23 3Q'23 Revenues3 ($ in millions) Earned Premiums Net Investment Income • Effective January 1, 2023, financials reflect LDTI accounting pronouncement • Profitability improved over prior year and sequential quarters • Policyholders continue to value our product; persistency remains consistent with pre-pandemic levels • New money yields increased and are near multi-year highs Highlights Metrics1 ($ in millions, except per policy amounts) 3Q’23 3Q’22 Change vs. 3Q’22 Life Net Operating Income $15 $13 15.4% Face Value of In-Force $20,013 $20,103 (0.4)% Avg. Face Value per Policy $6,342 $6,225 1.9% Avg. Premium per Policy Issued2 $604 $575 5.0% 1 Excludes Reserve National | 2 Annual basis 3 Excludes other income and solar credit impairment, Reserve National revenues due to sale, and reflects accounting under new accounting standard (ASU 2018-12)

Earnings Call Presentation – 3Q 2023 Key Takeaways 15 Profit restoration aligned with guidance and strategic initiatives on track • Ongoing dynamic operating environment • Underlying results improving as expected due to rate and non-rate actions • Strategic initiatives are on track: ̶ Bermuda optimization is expected to provide additional liquidity to parent in 4Q’23 ̶ Reciprocal Exchange established and began writing policies in the quarter ̶ Exit of Preferred P&C1 segment is progressing; no changes to associated capital release by year-end 2024 ̶ Restructuring and integration initiatives on track to produce targeted expense savings 1 Preferred P&C is represented by Kemper Personal Insurance

Earnings Call Presentation – 3Q 2023 Appendix 16

Earnings Call Presentation – 3Q 2023 17 Elevated Auto Severity Persists Due to Continued Inflationary Pressures • Physical damage severity remains elevated due to higher used car values, replacement parts, and labor costs – Body Work-related costs flattened in 3Q, but remain nearly double the rate of US Core Inflation – Value of used cars sharply dropped in 3Q, but remains elevated compared to other severity inputs since the beginning of 2021 • Bodily injury severity continued to temper in 3Q but remains elevated due to more severe injuries, medical inflation, and greater attorney representation Price Indices (Indexed to Q4 2018) Source: U.S. Bureau of Labor Statistics 90 100 110 120 130 140 150 160 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2019 2020 2021 2022 2023 MV Body Work Used Car & Truck Medical Care Core CPI 135 136 113 120

Earnings Call Presentation – 3Q 2023 2023 Reinsurance Program 18 Renewed Catastrophe XoL Reinsurance; discontinued the Catastrophe Aggregate for 2023 • Policy placed at 01/01/23 ̶ New limit aligned with risk-appetite to cover 1-in-200 occurrence ̶ Minimizes rating agency cost of capital Catastrophe Excess of Loss Program (XOL): • Total coverage: 95% of $275 million in excess of $50 million • Purchased limit was reduced by $25 million versus the prior year due to exposure changes and model enhancements • Total cost increased by $3.7 million1 from 2022 Catastrophe Aggregate Program: • Program was discontinued for 2023 HighlightsCatastrophe Reinsurance Program (Multi-Year) 1 Includes year-end 2022 treaty adjustment for 2021 and 2022 treaty years

Earnings Call Presentation – 3Q 2023 Non-GAAP Financial Measures 19 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 and Losses on Fixed Maturities and the Change in Discount Rate on Future Life Policyholder Benefits 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 and losses on fixed income securities and the change in discount rate on future life policyholder benefits 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 and losses on fixed income securities and the change in discount rate on future life policyholder benefits 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 and Losses on Fixed Maturities, the Change in Discount Rate on Future Life Policyholder Benefits 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 and losses on fixed income securities, the change in discount rate on future life policyholder benefits 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 and losses on fixed income securities, the change in discount rate on future life policyholder benefits 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.

Earnings Call Presentation – 3Q 2023 Non-GAAP Financial Measures 20 Adjusted Consolidated Net Operating Loss is an after-tax, non-GAAP financial measure and is computed by excluding from Net Loss the after-tax impact of: (i) Income (Loss) from Change in Fair Value of Equity and Convertible Securities; (ii) Net Realized Investment (Losses) Gains; (iii) Impairment (Losses) Gains; (iv) Acquisition and Disposition Related Transaction, Integration, Restructuring and Other Costs; (v) Debt Extinguishment, Pension Settlement and Other Charges; (vi) Goodwill Impairment Charges; (vii) Non-Core Operations; and (viii) 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 Loss. There were no applicable significant non-recurring items that the Company excluded from the calculation of Adjusted Consolidated Net Operating Loss for the three months ended September 30, 2023 or 2022. The Company believes that Adjusted Consolidated Net Operating 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 Investment (Losses) Gains and Impairment (Losses) Gains 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 and Disposition Related Transaction, Integration, Restructuring and Other 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 Settlement 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. Goodwill impairment charges are excluded because they are infrequent and non-recurring charges. Non-Core Operations includes the results of our Preferred Insurance business which we expect to fully exit. These results are excluded because they are irrelevant to our ongoing operations and do not qualify for Discontinued Operations under Generally Accepted Accounting Principles ("GAAP"). 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 profitability of the Company’s businesses. 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.

Earnings Call Presentation – 3Q 2023 Non-GAAP Financial Measures 21 Book Value Per Share As of ($ per share) Sep 30, 2023 Sep 30, 2022 Book Value Per Share $36.85 $42.18 Less: Net Unrealized Losses on Fixed Maturities 7.60 7.98 Book Value Per Share Excluding Net Unrealized Losses on Fixed Maturities and Changes in the Discount Rate on Future Life Policyholder Benefits $44.45 $50.16 Less: Goodwill (19.51) (20.33) Book Value Per Share Excluding Net Unrealized Losses on Fixed Maturities, Changes in the Discount Rate on Future Life Policyholder Benefits, and Goodwill $24.94 $29.83

Earnings Call Presentation – 3Q 2023 Non-GAAP Financial Measures 22 Return on Equity As of Sep 30, 2023 Sep 30, 2022 Rolling 12 Months Return on Average Kemper Corporation Shareholders' Equity (5-point Average) (14.6)% (11.1)% Less: Net Unrealized Losses on Fixed Maturities and Changes in the Discount Rate on Future Life Policyholder Benefits 2.2 1.3 Rolling 12 Months Return on Average Kemper Corporation Shareholders' Equity Excluding Net Unrealized Losses on Fixed Maturities and Changes in the Discount Rate on Future Life Policyholder Benefits (5-point Average) (12.4)% (9.8)% Less: Goodwill (9.0) (6.1) Rolling 12 Months Return on Average Kemper Corporation Shareholders' Equity Excluding Net Unrealized Losses on Fixed Maturities, Changes in the Discount Rate on Future Life Policyholder Benefits, and Goodwill (5-point Average) (21.4)% (15.9)%

Earnings Call Presentation – 3Q 2023 Non-GAAP Financial Measures 23 Diluted Adjusted Consolidated Net Operating Loss Per Unrestricted Share is a non-GAAP financial measure computed by dividing Adjusted Consolidated Net Operating 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 Loss Per Unrestricted Share. The Company believes that Diluted Adjusted Consolidated Net Operating 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 investment (losses) gains, impairment (losses) gains related to investments, acquisition related transaction, integration and other costs, loss from early extinguishment of debt, and goodwill impairment charges 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. Three Months Ended ($ per share) Sep 30, 2023 Sep 30, 2022 Net Loss Per Unrestricted Share Attributable to Kemper Corporation $(2.28) $(1.17) Less Net Income (Loss) Per Unrestricted Share From: Income (Loss) from Change in Fair Value of Equity and Convertible Securities 0.04 (0.14) Net Realized Investment (Losses) Gains (0.35) (0.15) Impairment (Losses) Gains (0.01) (0.10) Acquisition and Disposition Related Transaction, Integration, Restructuring and Other Costs (0.54) (0.32) Debt Extinguishment, Pension Settlement and Other Charges (0.87) - Goodwill Impairment Charge - - Non-Core Operations (0.11) (0.03) Adjusted Consolidated Net Operating Loss Per Unrestricted Share $(0.44) $(0.43)

Earnings Call Presentation – 3Q 2023 Three Months Ended 3Q'23 2Q'23 1Q’23 4Q'22 3Q'22 Specialty P&C Insurance Combined Ratio as Reported 109.9% 106.5% 112.1% 108.8% 107.6% Current Year Catastrophe Losses and LAE Ratio (0.7) (1.9) (0.9) 0.0 (1.5) Prior Years Non-Catastrophe Losses and LAE Ratio (8.8) (2.7) (3.3) (1.0) 0.7 Prior Years Catastrophe Losses and LAE Ratio 0.1 0.1 0.1 0.0 0.0 Underlying Combined Ratio 100.5% 102.0% 108.0% 107.8% 106.8% Personal Auto Insurance Combined Ratio as Reported 112.6% 108.0% 113.0% 111.5% 109.1% Current Year Catastrophe Losses and LAE Ratio (0.7) (2.0) (1.0) 0.0 (1.5) Prior Years Non-Catastrophe Losses and LAE Ratio (9.9) (2.3) (3.0) (1.7) 0.8 Prior Years Catastrophe Losses and LAE Ratio 0.1 0.1 0.1 0.0 0.0 Underlying Combined Ratio 102.1% 103.8% 109.1% 109.8% 108.4% Commercial Auto Insurance Combined Ratio as Reported 98.4% 99.5% 107.8% 93.8% 98.1% Current Year Catastrophe Losses and LAE Ratio (0.7) (1.4) (0.4) (0.1) (1.2) Prior Years Non-Catastrophe Losses and LAE Ratio (4.2) (4.2) (5.2) 2.6 (0.1) Prior Years Catastrophe Losses and LAE Ratio 0.1 0.0 0.0 0.0 (0.1) Underlying Combined Ratio 93.6% 93.9% 102.2% 96.3% 96.7% Non-GAAP Financial Measures 24 Underlying Combined Ratio

Earnings Call Presentation – 3Q 2023 Non-GAAP Financial Measures 25 Life Revenue and Net Operating Income Reconciliation Three Months Ended ($ in millions) 3Q'23 2Q'23 1Q'23 4Q'22 3Q'22 Earned Premiums Earned Premiums – As Reported $102.1 $102.2 $99.3 $142.6 $142.1 Less: Reserve National Earned Premiums - - - 25.6 40.2 Adjusted Earned Premiums $102.1 $102.2 $99.3 $117.0 $101.9 Net Investment Income Net Investment Income – As Reported $49.4 $47.1 $49.8 $52.6 $52.6 Less: Reserve National Net Investment Income - - - 0.2 0.3 Adjusted Net Investment Income $49.4 $47.1 $49.8 $52.4 $52.3 Net Operating Income Net Operating Income – As Reported $14.7 $8.9 $13.2 $23.0 $14.0 Less: Reserve National Net Operating Income - - - 0.3 0.6 Adjusted Net Operating Income $14.7 $8.9 $13.2 $22.7 $13.4

Document and Entity Information	Oct. 30, 2023
Cover [Abstract]
Document Type	8-K
Document Period End Date	Oct. 30, 2023
Entity Registrant Name	Kemper Corporation
Entity Central Index Key	0000860748
Amendment Flag	false
Entity File Number	001-18298
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	95-4255452
Entity Address, Address Line One	200 E. Randolph Street
Entity Address, Address Line Two	Suite 3300
Entity Address, City or Town	Chicago
Entity Address, State or Province	IL
Entity Address, Postal Zip Code	60601
City Area Code	312
Local Phone Number	661-4600
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Entity Emerging Growth Company	false
Common Stock
Cover [Abstract]
Title of 12(b) Security	Common Stock, par value $0.10 per share
Trading Symbol	KMPR
Security Exchange Name	NYSE
Entity Listings [Line Items]
Trading Symbol	KMPR
Security Exchange Name	NYSE
Title of 12(b) Security	Common Stock, par value $0.10 per share
5.875% Fixed-Rate Reset Junior Subordinated Debentures due 2062
Cover [Abstract]
Title of 12(b) Security	5.875% Fixed-Rate Reset Junior Subordinated Debentures due 2062
Trading Symbol	KMPB
Security Exchange Name	NYSE
Entity Listings [Line Items]
Trading Symbol	KMPB
Security Exchange Name	NYSE
Title of 12(b) Security	5.875% Fixed-Rate Reset Junior Subordinated Debentures due 2062

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