0000860748false00008607482024-08-052024-08-050000860748us-gaap:CommonStockMember2024-08-052024-08-050000860748kmpr:A5875FixedRateResetJuniorSubordinatedDebenturesDue2062Member2024-08-052024-08-05

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): August 5, 2024 
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 classTrading Symbol(s)Name of each exchange on which registered
Common Stock, par value $0.10 per shareKMPRNYSE
5.875% Fixed-Rate Reset Junior Subordinated Debentures due 2062KMPBNYSE

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 August 5, 2024, Kemper Corporation ("Kemper" or the "Registrant") issued a press release announcing its financial results for the second quarter of 2024 and the availability of Kemper’s second 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



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:August 5, 2024/s/    BRADLEY T. CAMDEN
 Bradley T. Camden
 Executive Vice President and Chief Financial Officer (Principal Financial Officer)


Exhibit 99.1
 

kemperlogocolorwebfinala051.jpg
Kemper Corporation
200 East Randolph Street
Suite 3300
Chicago, IL 60601
kemper.com

Press Release
Kemper Reports Second Quarter 2024 Operating Results*
CHICAGO, August 5, 2024 — Kemper Corporation (NYSE: KMPR) reported net income of $75.4 million, or $1.16 per diluted share, for the second quarter of 2024, compared to a net loss of $97.1 million, or $(1.52) per share, for the second quarter of 2023.

Adjusted Consolidated Net Operating Income1 was $91.7 million, or $1.42 per diluted share, for the second quarter of 2024, compared to Adjusted Consolidated Net Operating Loss1 of $14.2 million, or $(0.22) per share, for the second quarter of 2023.
Key themes of the quarter include:
•Profitability continued to improve sequentially generating an 11.5% ROE and a 17.6% Adjusted ROE1
•Specialty P&C underlying combined ratio1 improved 4.0 points sequentially to 89.6%, a 12.4 point improvement over 2Q’23
•Specialty P&C achieved 4.6% sequential quarter PIF growth
•Underlying business fundamentals in the Life business remain stable
•Parent liquidity remains strong at $1.1 billion; insurance companies remain well capitalized


“I’m proud of the strong results and progress we achieved this quarter,” said Joseph P. Lacher, Jr., President and CEO. “Notably, we delivered a third straight quarter of operating profitability, a combined ratio well below our long-term target in our Specialty Auto business, and generated 4.6% sequential quarter policies-in-force growth for that business. Our distinctive competitive advantages for our businesses and laser focus on long-term profitable growth will enable us to continue to maximize shareholder value.”








*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 consolidated under US GAAP.

Unless specified otherwise, discussion of our second quarter 2024 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 condensed consolidated financial results in this release.
1Non-GAAP financial measure. All Non-GAAP financial measures are denoted with footnote 1 throughout this release. See “Use of Non-GAAP Financial Measures” for additional information.



 Three Months EndedSix Months Ended
(Dollars in Millions, Except Per Share Amounts) (Unaudited)Jun 30,
2024		Jun 30,
2023		Jun 30,
2024		Jun 30,
2023
Net Income (Loss)$75.4 $(97.1)$146.7 $(177.2)
Adjusted Consolidated Net Operating Income (Loss)1
$91.7 $(14.2)$161.4 $(69.9)
Impact of Catastrophe Losses and Related Loss Adjustment Expense (LAE) on Net Income (Loss)
$(22.4)$(31.2)$(35.0)$(51.7)
Diluted Net Income (Loss) Per Share From:
Net Income (Loss)$1.16 $(1.52)$2.26 $(2.77)
Adjusted Consolidated Net Operating Income (Loss)1
$1.42 $(0.22)$2.49 $(1.09)
Impact of Catastrophe Losses and Related LAE on Net Income (Loss) Per Share
$(0.35)$(0.70)$(0.54)$(1.02)

Revenues
Total revenues for the second quarter of 2024 decreased $132.9 million, or 10.5 percent, to $1,129.9 million, compared to the second quarter of 2023, mostly driven by a $69.7 million decrease from the Specialty Property & Casualty Insurance segment due to continued lower new business volumes resulting from targeted actions to improve profitability, partially offset by higher average earned premium per exposure resulting from rate increases. The decrease was also due to $62.1 million in lower premiums from our Preferred Insurance business, reported as Non-Core Operations, due primarily to lower volumes resulting from the decision to exit and run-off the business in the third quarter of 2023 as well as ongoing profit improvement actions.



2

Segment Results
Unless otherwise noted, (i) the segment results discussed below are presented on an after-tax basis, (ii) prior-year development includes both catastrophe and non-catastrophe losses and LAE, (iii) catastrophe losses and LAE exclude the impact of prior-year development, (iv) loss ratio includes loss and LAE, and (v) all comparisons are made to the prior year quarter unless otherwise stated.
Three Months EndedSix Months Ended
(Dollars in Millions) (Unaudited)Jun 30,
2024		Jun 30,
2023		Jun 30,
2024		Jun 30,
2023
Segment Adjusted Net Operating Income (Loss):
Specialty Property & Casualty Insurance$102.3 $(10.8)$171.5 $(69.2)
Life Insurance(0.2)8.9 11.7 22.1 
Total Segment Adjusted Net Operating Income (Loss)102.1 (1.9)183.2 (47.1)
Corporate and Other Adjusted Net Operating Loss(11.4)(12.3)(23.9)(22.8)
Less: Net Loss attributable to Noncontrolling Interest(1.0)— (2.1)— 
Adjusted Consolidated Net Operating Income (Loss)1
91.7 (14.2)161.4 (69.9)
Net (Loss) Income From:
Change in Fair Value of Equity and Convertible Securities(1.0)1.9 1.7 3.2 
Net Realized Investment Gains (Losses)1.2 (12.5)6.4 (7.4)
Impairment Losses(0.1)(0.8)(1.3)0.9 
Acquisition and Disposition Related Transaction, Integration, Restructuring and Other Costs(5.1)(23.3)(15.2)(46.3)
Debt Extinguishment, Pension Settlement and Other Charges
2.1 — 2.1 — 
Goodwill Impairment Charge— (45.5)— (45.5)
Non-Core Operations(13.4)(2.7)(8.4)(12.2)
Net Income (Loss) attributable to Kemper Corporation
$75.4 $(97.1)$146.7 $(177.2)
The Specialty Property and Casualty Insurance segment reported adjusted net operating income of $102.3 million for the second quarter of 2024, compared to an adjusted net operating loss of $10.8 million in the second quarter of 2023. This increase in results was due primarily to an improvement in the Underlying Combined Ratio1 and lower prior year loss and LAE development. The segment’s Underlying Combined Ratio1 was 89.6 percent compared to 102.0 percent in the second quarter of 2023. 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 adjusted net operating loss of $0.2 million for the second quarter of 2024, compared to an adjusted net operating income of $8.9 million in the second quarter of 2023. The decrease in results was primarily driven by a reduction in net investment income that included an $11.9 million after-tax loss from an investment valuation adjustment on one real estate investment in our alternative investment portfolio.

3

Capital
Total Kemper Corporation Shareholders’ Equity at the end of the quarter was $2,671.2 million, an increase of $166.0 million, or 7 percent, since year-end 2023 primarily driven by net income for the year. Kemper and its direct non-insurance subsidiaries ended the quarter with cash and investments of $376.5 million, and $458.0 million of available borrowing capacity under the revolving credit agreement.

On May 1, 2024, Kemper announced that its Board of Directors declared a quarterly dividend of $0.31 per share, or $20.3 million. The dividend was paid on May 28, 2024, to its shareholders of record as of May 13, 2024.
Kemper ended the quarter with a book value per share of $41.46, an increase of 6 percent from $39.08 at the end of 2023. Adjusted book value per share1 was $27.14 at the end of the quarter, compared to $25.39 at the end of 2023.
4

Unaudited Condensed Consolidated Statements of Income (Loss) for the three and six months ended June 30, 2024 and 2023 are presented below.
Three Months EndedSix Months Ended
(Dollars in Millions, Except Per Share Amounts)Jun 30,
2024		Jun 30,
2023		Jun 30,
2024		Jun 30,
2023
Revenues:
Earned Premiums (Changes in Deferred Profit Liability for the Three Months Ended: 2024 - $16.7; 2023 - $16.5 and Six Months Ended: 2024 - $36.4; 2023 - $35.7)
$1,033.7 $1,166.9 $2,065.6 $2,347.8 
Net Investment Income93.0 106.3 193.4 208.1 
Change in Value of Alternative Energy Partnership Investments0.6 0.8 1.0 1.5 
Other Income2.4 1.7 4.2 2.9 
Change in Fair Value of Equity and Convertible Securities(1.2)2.4 2.2 4.1 
Net Realized Investment Gains (Losses)1.5 (14.4)8.1 (8.0)
Impairment Losses(0.1)(0.9)(1.6)1.2 
Total Revenues1,129.9 1,262.8 2,272.9 2,557.6 
Expenses:
Policyholders’ Benefits and Incurred Losses and Loss Adjustment Expenses (Changes in Liability for Future Policyholder Benefits for the Three Months Ended: 2024 - $1.6; 2023 - $0.6 and Six Months Ended: 2024 - $7.6; 2023 - $2.5)
744.4 984.7 1,500.4 2,036.7 
Insurance Expenses244.3 266.1 485.0 535.4 
Interest and Other Expenses49.3 78.3 109.0 155.7 
Goodwill Impairment— 49.6 — 49.6 
Total Expenses1,038.0 1,378.7 2,094.4 2,777.4 
Income (Loss) before Income Taxes91.9 (115.9)178.5 (219.8)
Income Tax (Expense) Benefit(17.5)18.8 (33.9)42.6 
Net Income (Loss)74.4 (97.1)$144.6 $(177.2)
Less: Net Loss attributable to Noncontrolling Interest(1.0)— (2.1)— 
Net Income (Loss) attributable to Kemper Corporation
$75.4 $(97.1)$146.7 $(177.2)
Net Income (Loss) attributable to Kemper Corporation per Unrestricted Share:
Basic$1.17 $(1.52)$2.28 $(2.77)
Diluted$1.16 $(1.52)$2.26 $(2.77)
Weighted-average Outstanding (Shares in Thousands):
Unrestricted Shares - Basic64,395.0 64,008.5 64,324.7 63,977.7 
Unrestricted Shares and Equivalent Shares - Diluted64,891.6 64,008.5 64,832.1 63,977.7 
Dividends Paid to Shareholders per Share$0.31 $0.31 $0.62 $0.62 



5

Unaudited business segment revenues for the three and six months ended June 30, 2024 and 2023 are presented below.
Three Months EndedSix Months Ended
(Dollars in Millions)Jun 30,
2024		Jun 30,
2023		Jun 30,
2024		Jun 30,
2023
REVENUES:
Specialty Property & Casualty Insurance:
Earned Premiums:
Personal Automobile$691.5 $766.6 $1,366.8 $1,554.5 
Commercial Automobile171.1 165.7 335.8 322.0 
Total Earned Premiums862.6 932.3 1,702.6 1,876.5 
Net Investment Income46.6 44.5 87.7 83.0 
Change in Value of Alternative Energy Partnership Investments0.3 0.4 0.6 0.8 
Other Income1.3 0.7 2.4 1.6 
Total Specialty Property & Casualty Insurance Revenues910.8 977.9 1,793.3 1,961.9 
Life Insurance:
Earned Premiums:
Life84.4 84.8 165.0 167.0 
Accident & Health5.6 5.8 11.2 11.7 
Property10.8 11.6 21.9 22.8 
Total Earned Premiums100.8 102.2 198.1 201.5 
Net Investment Income30.5 47.1 74.8 96.9 
Change in Value of Alternative Energy Partnership Investments0.1 0.2 0.2 0.4 
Other Income (Loss)0.1 0.1 0.3 (0.3)
Total Life Insurance Revenues131.5 149.6 273.4 298.5 
Total Segment Revenues1,042.3 1,127.5 2,066.7 2,260.4 
Change in Fair Value of Equity and Convertible Securities(1.2)2.4 2.2 4.1 
Net Realized Investment Gains (Losses)1.5 (14.4)8.1 (8.0)
Net Impairment Losses Recognized in Earnings(0.1)(0.9)(1.6)1.2 
Non-Core Operations83.8 145.7 190.0 293.7 
Other3.6 2.5 7.5 6.2 
Total Revenues$1,129.9 $1,262.8 $2,272.9 $2,557.6 

6

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

Jun 30,
2024		Dec 31,
2023
Assets:
Investments:
Fixed Maturities at Fair Value
$6,674.7 $6,881.9 
Equity Securities at Fair Value
226.6 225.8 
Equity Method Limited Liability Investments205.1 221.7 
Alternative Energy Partnership Investments17.3 17.3 
Short-term Investments at Cost which Approximates Fair Value539.1 520.9 
Company-Owned Life Insurance
523.3 513.5 
Loans to Policyholders
279.8 281.2 
Other Investments202.4 241.9 
Total Investments
8,668.3 8,904.2 
Cash
107.4 64.1 
Receivables from Policyholders
988.0 959.5 
Other Receivables
191.5 200.5 
Deferred Policy Acquisition Costs
608.0 591.6 
Goodwill
1,250.7 1,250.7 
Current Income Tax Assets
56.5 64.5 
Deferred Income Tax Assets185.0 210.4 
Other Assets
476.4 492.6 
Assets of Consolidated Variable Interest Entity
Fixed Maturities at Fair Value1.6 1.7 
Short-term Investments at Cost which Approximates Fair Value4.8 2.0 
Receivables from Policyholders5.2 0.7 
Deferred Policy Acquisition Costs0.3 0.1 
Other Assets— 0.1 
Total Assets
$12,544.3 $12,742.7 



















7

KEMPER CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS (Continued)
(Dollars in Millions)
(Unaudited)
Jun 30,
2024		Dec 31,
2023
Liabilities and Shareholders’ Equity:
Insurance Reserves:
Life & Health$3,202.0 $3,422.4 
Property & Casualty
2,567.2 2,680.5 
Total Insurance Reserves
5,769.2 6,102.9 
Unearned Premiums
1,301.5 1,300.8 
Policyholder Obligations644.4 655.7 
Deferred Income Tax Liabilities
68.3 50.6 
Accrued Expenses and Other Liabilities
693.8 737.7 
Long-term Debt, Current, at Amortized Cost449.8 — 
Long-term Debt, Non-current, at Amortized Cost940.6 1,389.2 
Liabilities of Consolidated Variable Interest Entity
Insurance Reserves2.4 — 
Unearned Premiums4.9 0.5 
Accrued Expenses and Other Liabilities0.1 0.3 
Total Liabilities
9,875.0 10,237.7 
Kemper Corporation Shareholders’ Equity:
Common Stock
6.4 6.4 
Paid-in Capital
1,860.9 1,845.3 
Retained Earnings
1,121.2 1,014.3 
Accumulated Other Comprehensive Loss(317.3)(360.8)
Total Kemper Corporation Shareholders’ Equity2,671.2 2,505.2 
Noncontrolling Interest(1.9)(0.2)
Total Shareholders’ Equity2,669.3 2,505.0 
Total Liabilities and Shareholders’ Equity$12,544.3 $12,742.7 
8

Unaudited selected financial information for the Specialty Property & Casualty Insurance segment follows.
Three Months EndedSix Months Ended
(Dollars in Millions)Jun 30,
2024		Jun 30, 2023Jun 30,
2024		Jun 30, 2023
Results of Operations
Net Premiums Written$933.9 $830.6 $1,798.5 $1,852.7 
Earned Premiums$862.6 $932.3 $1,702.6 $1,876.5 
Net Investment Income46.6 44.5 87.7 83.0 
Change in Value of Alternative Energy Partnership Investments0.3 0.4 0.6 0.8 
Other Income1.3 0.7 2.4 1.6 
Total Revenues910.8 977.9 1,793.3 1,961.9 
Incurred Losses and LAE related to:
Current Year:
Non-catastrophe Losses and LAE592.8 763.9 1,201.8 1,589.3 
Catastrophe Losses and LAE10.3 17.4 14.4 25.8 
Prior Years:
Non-catastrophe Losses and LAE(0.8)25.0 4.5 56.6 
Catastrophe Losses and LAE(0.1)(0.9)0.6 (1.4)
Total Incurred Losses and LAE602.2 805.4 1,221.3 1,670.3 
Insurance Expenses180.7 187.5 357.6 381.3 
Segment Adjusted Operating Income (Loss)127.9 (15.0)214.4 (89.7)
Income Tax (Expense) Benefit(25.6)4.2 (42.9)20.5 
Total Segment Adjusted Net Operating Income (Loss)$102.3 $(10.8)$171.5 $(69.2)
Ratios Based On Earned Premiums
Current Year Non-catastrophe Losses and LAE Ratio68.7 %81.9 %70.6 %84.7 %
Current Year Catastrophe Losses and LAE Ratio1.2 1.9 0.8 1.4 
Prior Years Non-catastrophe Losses and LAE Ratio(0.1)2.7 0.3 3.0 
Prior Years Catastrophe Losses and LAE Ratio— (0.1)— (0.1)
Total Incurred Loss and LAE Ratio69.8 86.4 71.7 89.0 
Insurance Expense Ratio20.9 20.1 21.0 20.3 
Combined Ratio90.7 %106.5 %92.7 %109.3 %
Underlying Combined Ratio1
Current Year Non-catastrophe Losses and LAE Ratio68.7 %81.9 %70.6 %84.7 %
Insurance Expense Ratio20.9 20.1 21.0 20.3 
Underlying Combined Ratio1
89.6 %102.0 %91.6 %105.0 %
Non-GAAP Measure Reconciliation
Combined Ratio90.7 %106.5 %92.7 %109.3 %
Less:
Current Year Catastrophe Losses and LAE Ratio1.2 1.9 0.8 1.4 
Prior Years Non-catastrophe Losses and LAE Ratio(0.1)2.7 0.3 3.0 
Prior Years Catastrophe Losses and LAE Ratio— (0.1)— (0.1)
Underlying Combined Ratio1
89.6 %102.0 %91.6 %105.0 %
9

Unaudited selected financial information for the Life Insurance segment follows.
Three Months EndedSix Months Ended
(Dollars in Millions)Jun 30,
2024		Jun 30,
2023		Jun 30,
2024		Jun 30,
2023
Results of Operations
Earned Premiums$100.8 $102.2 $198.1 $201.5 
Net Investment Income30.5 47.1 74.8 96.9 
Change in Value of Alternative Energy Partnership Investments0.1 0.2 0.2 0.4 
Other Income (Loss)0.1 0.1 0.3 (0.3)
Total Revenues131.5 149.6 273.4 298.5 
Policyholders’ Benefits and Incurred Losses and LAE63.9 68.3 126.9 138.2 
Insurance Expenses69.0 71.2 133.9 135.4 
Segment Adjusted Operating (Loss) Income(1.4)10.1 12.6 24.9 
Income Tax Benefit (Expense)1.2 (1.2)(0.9)(2.8)
Total Segment Adjusted Net Operating (Loss) Income$(0.2)$8.9 $11.7 $22.1 
Use of Non-GAAP Financial Measures
Adjusted Consolidated Net Operating Income (Loss)1 is an after-tax, non-GAAP financial measure and is computed by excluding from Net Income (Loss) attributable to Kemper Corporation the after-tax impact of:
(i) Change in Fair Value of Equity and Convertible Securities;
(ii) Net Realized Investment Gains (Losses);
(iii) Impairment Losses;
(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 Income (Loss) attributable to Kemper Corporation. There were no applicable significant non-recurring items that Kemper excluded from the calculation of Adjusted Consolidated Net Operating Income (Loss)1 for the three and six months ended June 30, 2024 or 2023.

Kemper believes that Adjusted Consolidated Net Operating Income (Loss)1 provides investors with a valuable measure of its ongoing performance because it reveals underlying operational performance trends that otherwise might be less apparent if the items were not excluded. Change in Fair Value of Equity and Convertible Securities, Net Realized Investment Gains (Losses) and Impairment Losses related to investments included in Kemper’s results may vary significantly between periods and are generally driven by business decisions and external economic developments such as capital market conditions that impact the values of 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
10

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 Income (Loss) attributable to Kemper Corporation to Adjusted Consolidated Net Operating Income (Loss)1 for the three and six months ended June 30, 2024 and 2023 is presented below.

Three Months EndedSix Months Ended
(Dollars in Millions) (Unaudited)Jun 30,
2024		Jun 30,
2023		Jun 30,
2024		Jun 30,
2023
Net Income (Loss) attributable to Kemper Corporation
$75.4 $(97.1)$146.7 $(177.2)
Less Net (Loss) Income From:
Change in Fair Value of Equity and Convertible Securities(1.0)1.9 1.7 3.2 
Net Realized Investment Gains (Losses)1.2 (12.5)6.4 (7.4)
Impairment Losses(0.1)(0.8)(1.3)0.9 
Acquisition and Disposition Related Transaction, Integration, Restructuring and Other Costs(5.1)(23.3)(15.2)(46.3)
Debt Extinguishment, Pension Settlement and Other Charges2.1 — 2.1 — 
Goodwill Impairment Charge— (45.5)— (45.5)
Non-Core Operations(13.4)(2.7)(8.4)(12.2)
Adjusted Consolidated Net Operating Income (Loss)1
$91.7 $(14.2)$161.4 $(69.9)
Diluted Adjusted Net Operating Income (Loss) per Unrestricted Share1 is a non-GAAP financial measure computed by dividing Adjusted Net Operating Income (Loss)1 attributed to unrestricted shares by the weighted-average unrestricted shares and equivalent shares outstanding. The most directly comparable GAAP financial measure is Diluted Net Loss per Unrestricted Share.
A reconciliation of Diluted Net Income (Loss) per Unrestricted Share to Diluted Adjusted Net Operating Income (Loss) per Unrestricted Share1 for the three and six months ended June 30, 2024 and 2023 is presented below.
 Three Months EndedSix Months Ended
(Unaudited)Jun 30,
2024		Jun 30,
2023		Jun 30,
2024		Jun 30,
2023
Diluted Net Income (Loss) attributable to Kemper Corporation per Unrestricted Share
$1.16 $(1.52)$2.26 $(2.77)
Less Net (Loss) Income per Unrestricted Share From:
Change in Fair Value of Equity and Convertible Securities(0.02)0.03 0.03 0.05 
Net Realized Investment Gains (Losses)0.02 (0.20)0.10 (0.12)
Impairment Losses— (0.02)(0.02)0.01 
Acquisition and Disposition Related Transaction, Integration, Restructuring and Other Costs(0.08)(0.36)(0.24)(0.72)
Debt Extinguishment, Pension Settlement and Other Charges0.03 — 0.03 — 
Goodwill Impairment Charge— (0.71)— (0.71)
Non-Core Operations(0.21)(0.04)(0.13)(0.19)
Diluted Adjusted Net Operating Income (Loss) per Unrestricted Share1
$1.42 $(0.22)$2.49 $(1.09)
11

Return on Adjusted Shareholders' Equity1 is a calculation that uses a non-GAAP financial measure. It is calculated by dividing the period’s net income attributable to Kemper Corporation by the average shareholders’ equity excluding net unrealized gains and losses on fixed maturities, the change in discount rate on future life policyholder benefits and goodwill. Return on Shareholders’ Equity is the most directly comparable GAAP measure. We use this non-GAAP measure to identify and analyze the change in performance attributable to management efforts between periods. Kemper believes this non-GAAP financial measure is useful to investors because it eliminates the effect of items that can fluctuate significantly from period to period and are generally driven by economic developments, primarily capital market conditions, the magnitude and timing of which are not influenced by management. Kemper believes it enhances understanding and comparability of performance by highlighting underlying business activity and profitability drivers. The “Return on Adjusted Shareholders’ Equity” metric was referred to as “Return on Tangible Shareholders’ Equity” in prior periods.

A reconciliation of Return on Shareholders’ Equity to Return on Adjusted Shareholders’ Equity1 is presented below:

 Three Months EndedSix Months Ended
(Dollars in Millions) (Unaudited)Jun 30,
2024		Jun 30,
2023		Jun 30,
2024		Jun 30,
2023
Numerator:
Annualized Net Income (Loss) attributable to Kemper Corporation
$301.6 $(388.4)$293.4 $(354.4)
Denominator:
Average Shareholders' Equity2
$2,630.5 $2,579.6 $2,588.7 $2,609.9 
Less: Average Net Unrealized Gains and Losses on Fixed Maturities
652.2 607.3 612.7 643.9 
Less: Average Change in Discount Rate on Future Life Policyholder Benefits
(315.1)(174.3)(263.5)(196.6)
Less: Average Goodwill
(1,250.7)(1,275.5)(1,250.7)(1,283.8)
Average Adjusted Shareholders' Equity2
$1,716.9 $1,737.1 $1,687.2 $1,773.4 
Return on Shareholders' Equity:
Return on Shareholders' Equity11.5%(15.1)%11.3%(13.6)%
Return on Adjusted Shareholders' Equity1
17.6%(22.4)%17.4%(20.0)%
2 Average shareholders' equity and average adjusted shareholders’ equity for the three and six months ended is the simple average of the beginning and ending balances for the period. Average shareholders’ equity and average adjusted shareholders’ equity on a year-to-date basis is the (a) the sum of the balance at the beginning of the year and the ending balance for each quarter within that year divided by (b) the number of quarters in the period presented plus one.
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
12

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.
Adjusted Book Value Per Share1 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. Kemper 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. Kemper believes the non-GAAP financial measure is useful to investors because it eliminates the effect of items that can fluctuate significantly from period to period and are generally driven by economic developments, primarily capital market conditions, the magnitude and timing of which are not influenced by management. Kemper believes it enhances understanding and comparability of performance by highlighting underlying business activity and profitability drivers. The “Adjusted Book Value Per Share” metric was referred to as “Tangible Book Value Per Share” in prior periods.

A reconciliation of Book Value Per Share to Adjusted Book Value Per Share1 is presented below:

As of
(Dollars and Shares in Millions Except Per Share Amounts) (Unaudited)Jun 30,
2024		Dec 31, 2023
Numerator:
Kemper Corporation Shareholders’ Equity$2,671.2 $2,505.2 
Less: Net Unrealized Gains and Losses on Fixed Maturities685.9 533.8 
Less: Change in Discount Rate on Future Life Policyholder Benefits(358.0)(160.6)
Less: Goodwill(1,250.7)(1,250.7)
Adjusted Shareholders’ Equity$1,748.4 $1,627.7 
Denominator:
Common Shares Issued and Outstanding64.427 64.112 
Book Value Per Share:
Book Value Per Share$41.46 $39.08 
Less: Net Unrealized Gains and Losses on Fixed Maturities10.65 8.33 
Less: Change in Discount Rate on Future Life Policyholder Benefits(5.56)(2.51)
Less: Goodwill(19.41)(19.51)
Adjusted Book Value Per Share1
$27.14 $25.39 
Conference Call
Kemper will host its conference call to discuss second quarter 2024 results on Monday, August 5, 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, conference ID 19792463. 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 second quarter of 2024, which is available at the investor section of kemper.com.

13

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 Kemper Auto and Kemper Life brands. Kemper serves over 4.8 million policies, is represented by approximately 22,300 agents and brokers, and has approximately 7,600 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 or incidents;
•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: Michael Marinaccio

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

14

kemperlogocolorwebfinala05b.jpg

Investor Supplement
Second Quarter 2024

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 or incidents;
•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 29-32.





Kemper Corporation
Investor Supplement
Second Quarter 2024
Table of Contents
 
 Page
Consolidated Financial Highlights3-4
Consolidated Statements of Income (Loss)
5
Consolidated Balance Sheets6-7
Consolidated Statements of Cash Flows8-9
Capital Metrics10
Debt Outstanding, Federal Home Loan Bank Advances and Ratings
11
Adjusted Segment Summary Results:
Revenues12
Adjusted Operating Income (Loss)13
Adjusted Net Operating Income (Loss)13
Catastrophe Frequency and Severity14-15
Specialty Property & Casualty Insurance Segment - Results of Operations and Selected Financial Information16-17
Personal Automobile Insurance18
Commercial Automobile Insurance19
Life Insurance Segment - Results of Operations and Selected Financial Information20-21
Expenses22
Details of Investment Performance23
Details of Invested Assets24-25
Investment Concentration26
Municipal Bond Securities27
Investments in Limited Liability Companies and Limited Partnerships28
Definitions of Non-GAAP Financial Measures29-32














Kemper Corporation
Consolidated Financial Highlights
(Dollars in Millions, Except Per Share Amounts)
(Unaudited)
 Three Months EndedSix Months Ended
Jun 30, 2024Mar 31, 2024Dec 31, 2023Sep 30, 2023Jun 30, 2023Mar 31, 2023Jun 30,
2024		Jun 30,
2023
For Period Ended
Earned Premiums
$1,033.7 $1,031.9 $1,063.8 $1,117.8 $1,166.9 $1,180.9 $2,065.6 $2,347.8 
Net Investment Income
93.0 100.4 104.6 107.0 106.3 101.8 193.4 208.1 
Change in Value of Alternative Energy Partnership Investments0.6 0.4 0.6 0.8 0.8 0.7 1.0 1.5 
Other Income2.4 1.8 1.9 2.4 1.7 1.2 4.2 2.9 
Change in Fair Value of Equity and Convertible Securities(1.2)3.4 (2.2)2.8 2.4 1.7 2.2 4.1 
Net Realized Investment Gains (Losses)1.4 5.1 18.5 (31.4)(15.3)8.5 6.5 (6.8)
Investment and Other Income96.2 111.1 123.4 81.6 95.9 113.9 207.3 209.8 
Total Revenues
$1,129.9 $1,143.0 $1,187.2 $1,199.4 $1,262.8 $1,294.8 $2,272.9 $2,557.6 
Net Income (Loss)
$74.4 $70.2 $51.3 $(146.4)$(97.1)$(80.1)$144.6 $(177.2)
Less: Net Loss attributable to Noncontrolling Interest(1.0)(1.1)(0.1)(0.1)— — (2.1)— 
Net Income (Loss) attributable to Kemper Corporation
$75.4 $71.3 $51.4 $(146.3)$(97.1)$(80.1)$146.7 $(177.2)
Adjusted Consolidated Net Operating Income (Loss)1
$91.7 $69.7 $50.5 $(27.8)$(14.2)$(55.7)$161.4 $(69.9)
Per Unrestricted Common Share Amounts:
Basic:
Net Income (Loss) attributable to Kemper Corporation per Unrestricted Share:
$1.17 $1.11 $0.80 $(2.28)$(1.52)$(1.25)$2.28 $(2.77)
Adjusted Consolidated Net Operating Income (Loss)1
$1.43 $1.08 $0.79 $(0.44)$(0.22)$(0.87)$2.51 $(1.09)
Diluted:
Net Income (Loss) attributable to Kemper Corporation per Unrestricted Share:
$1.16 $1.10 $0.80 $(2.28)$(1.52)$(1.25)$2.26 $(2.77)
Adjusted Consolidated Net Operating Income (Loss)1
$1.42 $1.07 $0.78 $(0.44)$(0.22)$(0.87)$2.49 $(1.09)
Dividends Paid to Shareholders Per Share
$0.31 $0.31 $0.31 $0.31 $0.31 $0.31 $0.62 $0.62 
Return on Shareholders' Equity11.5 %11.2 %8.4 %(24.0)%(15.1)%(12.1)%11.3 %(13.6)%
Return on Adjusted Shareholders' Equity1
17.6 %17.2 %12.7 %(35.4)%(22.4)%(17.7)%17.4 %(20.0)%
1Non-GAAP Financial Measure. See pages 29-32 for definition.
3

Kemper Corporation
Consolidated Financial Highlights
(Dollars in Millions, Except Per Share Amounts)
(Unaudited)
As of
Jun 30, 2024Mar 31, 2024Dec 31, 2023Sep 30, 2023Jun 30, 2023Mar 31, 2023
At Period End
Total Assets
$12,544.3$12,625.9$12,742.7$12,549.3$13,096.3$13,403.7
Insurance Reserves
$5,769.2$5,891.5$6,102.9$5,822.6$6,043.9$6,120.7
Debt
$1,390.4$1,389.8$1,389.2$1,388.6$1,388.1$1,387.5
Kemper Corporation Shareholders’ Equity$2,671.2$2,589.8$2,505.2$2,361.3$2,512.2$2,646.9
Book Value Per Share2
$41.46$40.24$39.08$36.85$39.22$41.37
Adjusted Book Value Per Share1,2
$27.14$26.19$25.39$24.94$26.66$27.61
Debt to Total Capitalization2
34.2%34.9%35.7%37.0%35.6%34.4%
1Non-GAAP Financial Measure. See pages 29-32 for definition.
2See Capital Metrics on page 10 for detail calculations.
4

Kemper Corporation
Consolidated Statements of Income (Loss)
(Dollars in Millions, Except Per Share Amounts)
(Unaudited)
 Three Months EndedSix Months Ended
 Jun 30, 2024Mar 31, 2024Dec 31, 2023Sep 30, 2023Jun 30, 2023Mar 31, 2023Jun 30,
2024		Jun 30,
2023
Revenues:
Earned Premiums$1,033.7 $1,031.9 $1,063.8 $1,117.8 $1,166.9 $1,180.9 $2,065.6 $2,347.8 
Net Investment Income93.0 100.4 104.6 107.0 106.3 101.8 193.4 208.1 
Change in Value of Alternative Energy Partnership Investments0.6 0.4 0.6 0.8 0.8 0.7 1.0 1.5 
Other Income2.4 1.8 1.9 2.4 1.7 1.2 4.2 2.9 
Change in Fair Value of Equity and Convertible Securities(1.2)3.4 (2.2)2.8 2.4 1.7 2.2 4.1 
Net Realized Investment Gains (Losses)1.5 6.6 19.7 (30.3)(14.4)6.4 8.1 (8.0)
Impairment Losses(0.1)(1.5)(1.2)(1.1)(0.9)2.1 (1.6)1.2 
Total Revenues1,129.9 1,143.0 1,187.2 1,199.4 1,262.8 1,294.8 2,272.9 2,557.6 
Expenses:
Policyholders’ Benefits and Incurred Losses and Loss Adjustment Expenses744.4 756.0 808.1 975.2 984.7 1,052.0 1,500.4 2,036.7 
Insurance Expenses244.3 240.7 258.0 259.0 266.1 269.3 485.0 535.4 
Interest and Other Expenses49.3 59.7 57.6 156.0 78.3 77.4 109.0 155.7 
Goodwill Impairment— — — — 49.6 — — 49.6 
Total Expenses1,038.0 1,056.4 1,123.7 1,390.2 1,378.7 1,398.7 2,094.4 2,777.4 
Income (Loss) before Income Taxes91.9 86.6 63.5 (190.8)(115.9)(103.9)178.5 (219.8)
Income Tax (Expense) Benefit(17.5)(16.4)(12.2)44.4 18.8 23.8 (33.9)42.6 
Net Income (Loss)74.4 70.2 51.3 (146.4)(97.1)(80.1)144.6 (177.2)
Less: Net Loss attributable to Noncontrolling Interest(1.0)(1.1)(0.1)(0.1)— — (2.1)— 
Net Income (Loss) attributable to Kemper Corporation
$75.4 $71.3 $51.4 $(146.3)$(97.1)$(80.1)$146.7 $(177.2)
Net Income (Loss) attributable to Kemper Corporation per Unrestricted Share:
Basic$1.17 $1.11 $0.80 $(2.28)$(1.52)$(1.25)$2.28 $(2.77)
Diluted$1.16 $1.10 $0.80 $(2.28)$(1.52)$(1.25)$2.26 $(2.77)
Dividends Paid to Shareholders Per Share$0.31 $0.31 $0.31 $0.31 $0.31 $0.31 $0.62 $0.62 
Weighted Average Unrestricted Common Shares Outstanding (in Millions)64.395 64.255 64.088 64.057 64.009 63.947 64.325 63.978 
Weighted-Average Unrestricted Shares and Equivalent Shares Outstanding Assuming Dilution (in Millions)64.892 64.773 64.566 64.057 64.009 63.947 64.832 63.978 
 
5

Kemper Corporation
Consolidated Balance Sheets
(Dollars in Millions)
 (Unaudited)
Jun 30, 2024Mar 31, 2024Dec 31, 2023Sep 30, 2023Jun 30, 2023Mar 31, 2023
Assets:
Investments:
Fixed Maturities at Fair Value$6,674.7 $6,771.6 $6,881.9 $6,474.5 $6,943.8 $7,189.4 
Equity Securities at Fair Value226.6 230.1 225.8 233.4 247.0 243.6 
Equity Method Limited Liability Investments205.1 215.2 221.7 224.1 225.1 218.7 
Alternative Energy Partnerships17.3 17.2 17.3 17.2 16.8 17.0 
Short-term Investments at Cost which Approximates Fair Value539.1 520.7 520.9 418.5 406.3 278.4 
Company-Owned Life Insurance
523.3 515.7 513.5 506.9 500.5 595.3 
Loans to Policyholders
279.8 280.5 281.2 281.8 281.6 283.1 
Other Investments202.4 213.6 241.9 273.1 275.6 271.8 
Total Investments8,668.3 8,764.6 8,904.2 8,429.5 8,896.7 9,097.3 
Cash107.4 125.9 64.1 110.0 73.6 60.6 
Receivables from Policyholders988.0 953.1 959.5 1,102.6 1,246.3 1,344.0 
Other Receivables191.5 195.4 200.5 223.4 262.0 249.4 
Deferred Policy Acquisition Costs608.0 595.3 591.6 622.2 646.2 651.5 
Goodwill1,250.7 1,250.7 1,250.7 1,250.7 1,250.7 1,300.3 
Current Income Tax Assets56.5 52.6 64.5 59.5 9.0 15.0 
Deferred Income Tax Assets185.0 199.1 210.4 258.5 208.0 166.0 
Other Assets476.4 479.1 492.6 488.7 503.8 519.6 
Assets of Consolidated Variable Interest Entity:
Fixed Maturities at Fair Value1.6 1.7 1.7 1.6 — — 
Short-term Investments at Cost which Approximates Fair Value4.8 4.0 2.0 — — — 
Cash— 0.8 — 2.4 — — 
Receivables from Policyholders5.2 2.7 0.7 0.1 — — 
Deferred Policy Acquisition Costs0.3 0.6 0.1 — — — 
Deferred Income Tax Assets0.6 — — — — — 
Other Assets— 0.3 0.1 0.1 — — 
Total Assets$12,544.3 $12,625.9 $12,742.7 $12,549.3 $13,096.3 $13,403.7 
6

Kemper Corporation
Consolidated Balance Sheets
(Dollars in Millions)
 (Unaudited)
Jun 30, 2024Mar 31, 2024Dec 31, 2023Sep 30, 2023Jun 30, 2023Mar 31, 2023
Liabilities and Shareholders’ Equity:
Insurance Reserves:
Life and Health$3,202.0 $3,294.3 $3,422.4 $3,098.1 $3,363.8 $3,399.6 
Property and Casualty2,567.2 2,597.2 2,680.5 2,724.5 2,680.1 2,721.1 
Total Insurance Reserves5,769.2 5,891.5 6,102.9 5,822.6 6,043.9 6,120.7 
Unearned Premiums1,301.5 1,274.1 1,300.8 1,485.1 1,665.2 1,778.0 
Policyholder Obligations644.4 660.9 655.7 656.3 700.2 700.6 
Deferred Income Tax Liabilities68.3 61.7 50.6 57.8 — — 
Accrued Expenses and Other Liabilities693.8 754.8 737.7 777.6 786.7 770.0 
Long-term Debt, Current, at Amortized Cost449.8 449.7 — — — — 
Long-term Debt, Non-Current, at Amortized Cost940.6 940.1 1,389.2 1,388.6 1,388.1 1,387.5 
Liabilities of Consolidated Variable Interest Entity:
Insurance Reserves2.4 0.7 — — — — 
Unearned Premiums4.9 3.1 0.5 0.1 — — 
Accrued Expenses and Other Liabilities0.1 0.6 0.3 — — — 
Total Liabilities9,875.0 10,037.2 10,237.7 10,188.1 10,584.1 10,756.8 
Kemper Corporation Shareholders’ Equity:
Common Stock6.4 6.4 6.4 6.4 6.4 6.4 
Paid-in Capital1,860.9 1,852.3 1,845.3 1,845.9 1,837.6 1,828.9 
Retained Earnings1,121.2 1,066.1 1,014.3 982.4 1,149.0 1,266.3 
Accumulated Other Comprehensive Loss(317.3)(335.0)(360.8)(473.4)(480.8)(454.7)
Total Kemper Corporation Shareholders’ Equity2,671.2 2,589.8 2,505.2 2,361.3 2,512.2 2,646.9 
Noncontrolling Interest(1.9)(1.1)(0.2)(0.1)— — 
Total Shareholders’ Equity$2,669.3 $2,588.7 $2,505.0 $2,361.2 $2,512.2 $2,646.9 
Total Liabilities and Shareholders’ Equity$12,544.3 $12,625.9 $12,742.7 $12,549.3 $13,096.3 $13,403.7 

7

Kemper Corporation
Consolidated Statements of Cash Flows
(Dollars in Millions)
 (Unaudited)
 Six Months Ended
 Jun 30,
2024		Jun 30,
2023
Cash Flows from Operating Activities:
Net Income (Loss)
$144.6 $(177.2)
Adjustments to Reconcile Net Income (Loss) to Net Cash Provided by (Used in) Operating Activities
Net Realized Investment (Gains) Losses(8.1)8.0 
Impairment Losses1.6 (1.2)
Depreciation and Amortization of Property, Equipment and Software22.4 26.2 
Amortization of Intangible Assets Acquired5.3 7.9 
Settlement Related to Defined Benefit Pension Plan(2.7)— 
Change in Accumulated Undistributed Earnings of Equity Method Limited Liability Investments23.2 (1.3)
Change in Value of Alternative Energy Partnership Investments(1.0)(1.5)
Change in Value of Equity and Convertible Securities(2.2)(4.1)
Goodwill Impairment— 49.6 
Changes in:
Receivables from Policyholders(32.6)40.3 
Reinsurance Recoverables4.1 11.6 
Deferred Policy Acquisition Costs(16.6)(10.6)
Insurance Reserves(80.7)(47.7)
Unearned Premiums5.1 (39.2)
Income Taxes38.7 72.6 
Other Assets and Liabilities(35.2)0.7 
Net Cash Provided by (Used in) Operating Activities65.9 (65.9)
Cash Flows from Investing Activities:
Proceeds from the Sales, Calls and Maturities of Fixed Maturities629.2 353.0 
Proceeds from the Sales or Paydowns of Investments:
Equity Securities19.3 32.5 
Mortgage Loans71.9 42.5 
Other Investments8.6 5.1 
Purchases of Investments:
Fixed Maturities(578.4)(334.8)
Equity Securities(6.3)(26.2)
Real Estate Investments(0.6)(0.3)
Mortgage Loans(55.3)(44.1)
Other Investments(30.2)(11.6)
Net Purchases of Short-term Investments(12.6)(126.9)
Acquisition of Software and Long-lived Assets(33.0)(25.4)
Settlement Proceeds from Company-Owned Life Insurance6.2 102.2 
Other13.8 (1.1)
Net Cash Provided by (Used in) Investing Activities32.6 (35.1)
8

Kemper Corporation
Consolidated Statements of Cash Flows
(Dollars in Millions)
 (Unaudited)
 Six Months Ended
 Jun 30,
2024		Jun 30,
2023
Net Cash Provided by (Used in) Investing Activities (Carryforward from page 8)
$32.6 $(35.1)
Cash Flows from Financing Activities:
Proceeds from Policyholder Contract Obligations59.1 114.5 
Repayment of Policyholder Contract Obligations(70.7)(115.8)
Proceeds from Shares Issued under Employee Stock Purchase Plan2.0 2.2 
Dividends Paid(39.8)(39.6)
Other(5.8)0.9 
Net Cash Used in Financing Activities(55.2)(37.8)
Net increase (decrease) in cash1
43.3 (138.8)
Cash, Beginning of Year1
64.1 212.4 
Cash, End of Period1
$107.4 $73.6 
1Includes amounts attributable to Kemper Reciprocal reported as non-controlling interest.
9

Kemper Corporation
Capital Metrics
(Dollars and Shares in Millions, Except Per Share Amounts)
(Unaudited)
 Jun 30, 2024Mar 31, 2024Dec 31, 2023Sep 30, 2023Jun 30, 2023Mar 31, 2023
Book Value Per Share   
Book Value Per Share$41.46 $40.24 $39.08 $36.85 $39.22 $41.37 
Adjusted Book Value Per Share1
$27.14 $26.19 $25.39 $24.94 $26.66 $27.61 
Debt and Total Capitalization
Debt$1,390.4 $1,389.8 $1,389.2 $1,388.6 $1,388.1 $1,387.5 
Kemper Corporation Shareholders’ Equity2,671.2 2,589.8 2,505.2 2,361.3 2,512.2 2,646.9 
Total Capitalization$4,061.6 $3,979.6 $3,894.4 $3,749.9 $3,900.3 $4,034.4 
Ratio of Debt to Kemper Corporation Shareholders’ Equity52.1 %53.7 %55.5 %58.8 %55.3 %52.4 %
Ratio of Debt to Total Capitalization34.2 %34.9 %35.7 %37.0 %35.6 %34.4 %
Debt$1,390.4 $1,389.8 $1,389.2 $1,388.6 $1,388.1 $1,387.5 
Kemper Corporation Shareholders’ Equity$2,671.2 $2,589.8 $2,505.2 $2,361.3 $2,512.2 $2,646.9 
Less: Accumulated Other Comprehensive Loss
(317.3)(335.0)(360.8)(473.4)(480.8)(454.7)
Kemper Corporation Shareholders’ Equity Excluding Accumulated Other Comprehensive Loss
$2,988.5 $2,924.8 $2,866.0 $2,834.7 $2,993.0 $3,101.6 
Total Capitalization Excluding Accumulated Other Comprehensive Loss
$4,378.9 $4,314.6 $4,255.2 $4,223.3 $4,381.1 $4,489.1 
Ratio of Debt to Kemper Corporation Shareholders’ Equity Excluding Accumulated Other Comprehensive Loss
46.5 %47.5 %48.5 %49.0 %46.4 %44.7 %
Ratio of Debt to Total Capitalization Excluding Accumulated Other Comprehensive Loss
31.8 %32.2 %32.6 %32.9 %31.7 %30.9 %
Parent Company Liquidity2
Kemper Holding Company Cash and Investments3
$376.5 $395.6 $464.5 $153.9 $220.3 $240.6 
Borrowings Available Under Credit Agreement458.0 424.0 393.0 376.0 460.0 520.0 
Parent Company Liquidity$834.5 $819.6 $857.5 $529.9 $680.3 $760.6 
Capital Returned to Shareholders
Cash Dividends Paid4
$20.3 $19.5 $20.2 $20.2 $20.2 $19.4 
1Non-GAAP Financial Measure. See pages 29-32 for definition.
2Excludes borrowings available from subsidiaries
3Includes Kemper's direct non-insurance subsidiaries
4Three Months Ended
 
10

Kemper Corporation
Debt Outstanding, Federal Home Loan Bank Advances and Ratings
(Dollars in Millions)
(Unaudited)
Jun 30, 2024Mar 31, 2024Dec 31, 2023Sep 30, 2023Jun 30, 2023Mar 31, 2023
Kemper Corporation:
Senior Notes at Amortized Cost:
Current:
4.350% Senior Notes due February 15, 2025$449.8 $449.7 $— $— $— $— 
Non-Current:
4.350% Senior Notes due February 15, 2025$— $— $449.6 $449.6 $449.5 $449.4 
2.400% Senior Notes due September 30, 2030397.3 397.1 397.0 396.9 396.8 396.7 
3.800% Senior Notes due 2032396.2 396.1 396.0 395.8 395.7 395.6 
5.875% Fixed-Rate Reset Junior Subordinated Debentures Due 2062 at Amortized Cost147.1 146.9 146.6 146.3 146.1 145.8 
Long-term Debt Outstanding$1,390.4 $1,389.8 $1,389.2 $1,388.6 $1,388.1 $1,387.5 
Federal Home Loan Bank Advances to Insurance Subsidiaries:
Reported as Policyholder Contract Liabilities:
Federal Home Loan Bank of Chicago$547.0 $563.2 $557.4 $557.4 $601.0 $601.0 
Reported as Debt Outstanding:
Federal Home Loan Bank of Dallas$— $— $— $— $— $— 
Federal Home Loan Bank of Chicago$— $— $— $— $— $— 
Federal Home Loan Bank of San Francisco$— $— $— $— $— $— 
 A.M. BestMoody’sS&PFitch
As of Date of Financial Supplement
Kemper Debt Ratings:
Senior Unsecured Debtbbb-Baa3BBB-BBB-
Junior Unsecured DebtbbBa1BBBB
Insurance Company Financial Strength Ratings:
Trinity Universal Insurance CompanyA-A3A-A-
United Insurance Company of AmericaA-A3A-A-





11

Kemper Corporation
Segment Revenues
(Dollars in Millions)
(Unaudited)
 Three Months EndedSix Months Ended
 Jun 30, 2024Mar 31, 2024Dec 31, 2023Sep 30, 2023Jun 30, 2023Mar 31, 2023Jun 30,
2024		Jun 30,
2023
Revenues:   
Specialty Property & Casualty Insurance:
Earned Premiums:
Personal Automobile$691.5 $675.3 $699.3 $724.0 $766.6 $787.9 $1,366.8 $1,554.5 
Commercial Automobile171.1 164.7 166.3 166.4 165.7 156.3 335.8 322.0 
Total Specialty Property & Casualty Insurance Earned Premiums862.6 840.0 865.6 890.4 932.3 944.2 1,702.6 1,876.5 
Net Investment Income46.6 41.1 42.6 42.7 44.5 38.5 87.7 83.0 
Change in Value of Alternative Energy Partnership Investments0.3 0.3 0.3 0.5 0.4 0.4 0.6 0.8 
Other Income1.3 1.1 1.3 1.6 0.7 0.9 2.4 1.6 
Total Specialty Property & Casualty Insurance Revenues910.8 882.5 909.8 935.2 977.9 984.0 1,793.3 1,961.9 
Life Insurance:
Earned Premium100.8 97.3 84.0 102.1 102.2 99.3 198.1 201.5 
Net Investment Income30.5 44.3 47.1 49.4 47.1 49.8 74.8 96.9 
Change in Value of Alternative Energy Partnership Investments0.1 0.1 0.1 0.2 0.2 0.2 0.2 0.4 
Other Income (Loss)0.1 0.2 0.2 (0.1)0.1 (0.4)0.3 (0.3)
Total Life Insurance Revenues131.5 141.9 131.4 151.6 149.6 148.9 273.4 298.5 
Total Segment Revenues1,042.3 1,024.4 1,041.2 1,086.8 1,127.5 1,132.9 2,066.7 2,260.4 
Change in Fair Value of Equity and Convertible Securities(1.2)3.4 (2.2)2.8 2.4 1.7 2.2 4.1 
Net Realized Investment Gains (Losses)1.5 6.6 19.7 (30.3)(14.4)6.4 8.1 (8.0)
Impairment Losses(0.1)(1.5)(1.2)(1.1)(0.9)2.1 (1.6)1.2 
Non-Core Operations
83.8 106.2 126.7 138.0 145.7 148.0 190.0 293.7 
Other3.6 3.9 3.0 3.2 2.5 3.7 7.5 6.2 
Total Revenues$1,129.9 $1,143.0 $1,187.2 $1,199.4 $1,262.8 $1,294.8 $2,272.9 $2,557.6 

12

Kemper Corporation
Segment Adjusted Operating Results
(Dollars in Millions)
(Unaudited)
 Three Months EndedSix Months Ended
 Jun 30, 2024Mar 31, 2024Dec 31, 2023Sep 30, 2023Jun 30, 2023Mar 31, 2023Jun 30,
2024		Jun 30,
2023
Segment Adjusted Operating Income (Loss):
  
Specialty Property & Casualty Insurance$127.9 $86.5 $56.6 $(43.2)$(15.0)$(74.7)$214.4 $(89.7)
Life Insurance(1.4)14.0 19.9 17.5 10.1 14.8 12.6 24.9 
Total Segment Adjusted Operating Income (Loss)
126.5 100.5 76.5 (25.7)(4.9)(59.9)227.0 (64.8)
Corporate and Other Adjusted Operating Loss(13.7)(15.6)(13.7)(13.3)(15.3)(12.9)(29.3)(28.2)
Less: Loss before Income Taxes attributable to Noncontrolling Interest(1.3)(1.4)(0.2)(0.1)— — (2.7)— 
Adjusted Consolidated Operating Income (Loss)114.1 86.3 63.0 (38.9)(20.2)(72.8)200.4 (93.0)
Income (Loss) From:
Change in Fair Value of Equity and Convertible Securities(1.2)3.4 (2.2)2.8 2.4 1.7 2.2 4.1 
Net Realized Investment Gains (Losses)1.5 6.6 19.7 (30.3)(14.4)6.4 8.1 (8.0)
Impairment Losses(0.1)(1.5)(1.2)(1.1)(0.9)2.1 (1.6)1.2 
Acquisition and Disposition Related Transaction, Integration, Restructuring and Other Costs(6.5)(12.8)(18.3)(43.4)(29.5)(29.1)(19.3)(58.6)
Debt Extinguishment, Pension Settlement and Other Charges
2.7 — — (70.2)— — 2.7 — 
Goodwill Impairment Charge— — — — (49.6)— — (49.6)
Non-Core Operations
(17.3)6.0 2.7 (9.6)(3.7)(12.2)(11.3)(15.9)
Income (Loss) before Income Taxes attributable to Kemper Corporation
$93.2 $88.0 $63.7 $(190.7)$(115.9)$(103.9)$181.2 $(219.8)
Segment Adjusted Net Operating Income (Loss):
Specialty Property & Casualty Insurance$102.3 $69.2 $45.3 $(33.2)$(10.8)$(58.4)$171.5 $(69.2)
Life Insurance(0.2)11.9 15.0 14.7 8.9 13.2 11.7 22.1 
Total Segment Adjusted Net Operating Income (Loss)102.1 81.1 60.3 (18.5)(1.9)(45.2)183.2 (47.1)
Corporate and Other Adjusted Net Operating Loss(11.4)(12.5)(9.9)(9.4)(12.3)(10.5)(23.9)(22.8)
Less: Net Loss attributable to Noncontrolling Interest(1.0)(1.1)(0.1)(0.1)— — (2.1)— 
Adjusted Consolidated Net Operating Income (Loss)1
91.7 69.7 50.5 (27.8)(14.2)(55.7)161.4 (69.9)
Net Income (Loss) From:
Change in Fair Value of Equity and Convertible Securities(1.0)2.7 (1.8)2.3 1.9 1.3 1.7 3.2 
Net Realized Investment Gains (Losses)1.2 5.2 15.6 (22.9)(12.5)5.1 6.4 (7.4)
Impairment Losses(0.1)(1.2)(1.0)(0.8)(0.8)1.7 (1.3)0.9 
Acquisition and Disposition Related Transaction, Integration, Restructuring and Other Costs(5.1)(10.1)(14.4)(34.3)(23.3)(23.0)(15.2)(46.3)
Debt Extinguishment, Pension Settlement and Other Charges
2.1 — — (55.5)— — 2.1 — 
Goodwill Impairment Charge— — — — (45.5)— — (45.5)
Non-Core Operations
(13.4)5.0 2.5 (7.3)(2.7)(9.5)(8.4)(12.2)
Net Income (Loss) attributable to Kemper Corporation
$75.4 $71.3 $51.4 $(146.3)$(97.1)$(80.1)$146.7 $(177.2)
1Non-GAAP Financial Measure. See pages 29-32 for definition.
            
 
13

Kemper Corporation
Catastrophe Frequency and Severity
(Dollars in Millions)
(Unaudited)
Three Months Ended June 30, 2024
Specialty Property & Casualty Insurance SegmentLife Insurance SegmentNon-Core OperationsConsolidated
Number of EventsLosses and LAENumber of EventsLosses and LAENumber of EventsLosses and LAENumber of EventsLosses and LAE
Range of Losses and LAE Per Event1:
Below $523 $10.3 24 $0.4 24 $17.6 27 $28.3 
$5 - $10— — — — — — — — 
$10 - $15— — — — — — — — 
$15 - $20— — — — — — — — 
$20 - $25— — — — — — — — 
Greater Than $25— — — — — — — — 
Total23 $10.3 24 $0.4 24 $17.6 27 $28.3 
Three Months Ended June 30, 2023
Specialty Property & Casualty Insurance SegmentLife Insurance SegmentNon-Core OperationsConsolidated
Number of EventsLosses and LAENumber of EventsLosses and LAENumber of EventsLosses and LAENumber of EventsLosses and LAE
Range of Losses and LAE Per Event1:
Below $518 $11.8 16 $0.8 17 $21.2 16 $33.6 
$5 - $101 5.7 — — — — 1 5.9 
$10 - $15— — — — — — — — 
$15 - $20— — — — — — — — 
$20 - $25— — — — — — — — 
Greater Than $25— — — — — — — — 
Total19 $17.5 16 $0.8 17 $21.2 17 $39.5 
1Current accident year net incurred catastrophe Losses and LAE only.













14


Kemper Corporation
Catastrophe Frequency and Severity (continued)
(Dollars in Millions)
(Unaudited)
Six Months Ended June 30, 2024
Specialty Property & Casualty Insurance SegmentLife Insurance SegmentNon-Core OperationsConsolidated
Number of EventsLosses and LAENumber of EventsLosses and LAENumber of EventsLosses and LAENumber of EventsLosses and LAE
Range of Losses and LAE Per Event1:
Below $542 $14.4 36 $0.6 42 $29.3 46 $44.3 
$5 - $10— — — — — — — — 
$10 - $15— — — — — — — — 
$15 - $20— — — — — — — — 
$20 - $25— — — — — — — — 
Greater Than $25— — — — — — — — 
Total42 $14.4 36 $0.6 42 $29.3 46 $44.3 
Six Months Ended June 30, 2023
Specialty Property & Casualty Insurance SegmentLife Insurance SegmentNon-Core OperationsConsolidated
Number of EventsLosses and LAENumber of EventsLosses and LAENumber of EventsLosses and LAENumber of EventsLosses and LAE
Range of Losses and LAE Per Event1:
Below $538 $20.1 28 $1.4 41 $38.2 40 $59.5 
$5 - $101 5.7 — — — — 1 5.9 
$10 - $15— — — — — — — — 
$15 - $20— — — — — — — — 
$20 - $25— — — — — — — — 
Greater Than $25— — — — — — — — 
Total39 $25.8 28 $1.4 41 $38.2 41 $65.4 
1Current accident year net incurred catastrophe Losses and LAE only.





15

Kemper Corporation
Specialty Property & Casualty Insurance Segment
Results of Operations and Selected Financial Information
(Dollars in Millions)
(Unaudited)
 Three Months EndedSix Months Ended
 Jun 30, 2024Mar 31, 2024Dec 31, 2023Sep 30, 2023Jun 30, 2023Mar 31, 2023Jun 30,
2024		Jun 30,
2023
Results of Operations    
Net Premiums Written$933.9 $864.6 $719.7 $733.0 $830.6 $1,022.1 $1,798.5 $1,852.7 
Total Specialty P&C:
Personal Automobile$691.5 $675.3 $699.3 $724.0 $766.6 $787.9 1,366.8 1,554.5 
Commercial Automobile171.1 164.7 166.3 166.4 165.7 156.3 335.8 322.0 
Earned Premiums862.6 840.0 865.6 890.4 932.3 944.2 $1,702.6 $1,876.5 
Net Investment Income46.6 41.1 42.6 42.7 44.5 38.5 87.7 83.0 
Change in Value of Alternative Energy Partnership Investments0.3 0.3 0.3 0.5 0.4 0.4 0.6 0.8 
Other Income1.3 1.1 1.3 1.6 0.7 0.9 2.4 1.6 
Total Revenues910.8 882.5 909.8 935.2 977.9 984.0 1,793.3 1,961.9 
Incurred Losses and LAE related to:
Current Year:
Non-catastrophe Losses and LAE592.8 609.0 673.1 712.1 763.9 825.4 1,201.8 1,589.3 
Catastrophe Losses and LAE10.3 4.1 2.5 6.2 17.4 8.4 14.4 25.8 
Prior Years:
Non-catastrophe Losses and LAE(0.8)5.3 (0.2)78.8 25.0 31.6 4.5 56.6 
Catastrophe Losses and LAE(0.1)0.7 0.1 (1.0)(0.9)(0.5)0.6 (1.4)
Total Incurred Losses and LAE602.2 619.1 675.5 796.1 805.4 864.9 1,221.3 1,670.3 
Insurance Expenses180.7 176.9 177.7 182.3 187.5 193.8 357.6 381.3 
Segment Adjusted Operating Income (Loss)127.9 86.5 56.6 (43.2)(15.0)(74.7)214.4 (89.7)
Income Tax (Expense) Benefit(25.6)(17.3)(11.3)10.0 4.2 16.3 (42.9)20.5 
Total Segment Adjusted Net Operating Income (Loss)$102.3 $69.2 $45.3 $(33.2)$(10.8)$(58.4)$171.5 $(69.2)
Ratios Based On Earned Premiums
Current Year Non-catastrophe Losses and LAE Ratio68.7 %72.5 %77.7 %80.0 %81.9 %87.5 %70.6 %84.7 %
Current Year Catastrophe Losses and LAE Ratio1.2 0.5 0.3 0.7 1.9 0.9 0.8 1.4 
Prior Years Non-catastrophe Losses and LAE Ratio(0.1)0.6 — 8.8 2.7 3.3 0.3 3.0 
Prior Years Catastrophe Losses and LAE Ratio— 0.1 — (0.1)(0.1)(0.1)— (0.1)
Total Incurred Loss and LAE Ratio69.8 73.7 78.0 89.4 86.4 91.6 71.7 89.0 
Insurance Expense Ratio20.9 21.1 20.5 20.5 20.1 20.5 21.0 20.3 
Combined Ratio90.7 %94.8 %98.5 %109.9 %106.5 %112.1 %92.7 %109.3 %
Underlying Combined Ratio1
Current Year Non-catastrophe Losses and LAE Ratio68.7 %72.5 %77.7 %80.0 %81.9 %87.5 %70.6 %84.7 %
Insurance Expense Ratio20.9 21.1 20.5 20.5 20.1 20.5 21.0 20.3 
Underlying Combined Ratio89.6 %93.6 %98.2 %100.5 %102.0 %108.0 %91.6 %105.0 %
Non-GAAP Measure Reconciliation
Combined Ratio as Reported90.7 %94.8 %98.5 %109.9 %106.5 %112.1 %92.7 %109.3 %
Less:
Current Year Catastrophe Losses and LAE Ratio1.2 0.5 0.3 0.7 1.9 0.9 0.8 1.4 
Prior Years Non-catastrophe Losses and LAE Ratio(0.1)0.6 — 8.8 2.7 3.3 0.3 3.0 
Prior Years Catastrophe Losses and LAE Ratio— 0.1 — (0.1)(0.1)(0.1)— (0.1)
Underlying Combined Ratio89.6 %93.6 %98.2 %100.5 %102.0 %108.0 %91.6 %105.0 %
1Underlying Combined Ratio is a non-GAAP measure, which is computed as the difference between three operating ratios: the combined ratio, the effect of catastrophes (excluding development of prior-year catastrophes) on the combined ratio and the effect of prior-year reserve development at the reporting date (including development on prior-year catastrophes) on the combined ratio.
16

Kemper Corporation
Specialty Property & Casualty Insurance Segment
Results of Operations and Selected Financial Information (continued)
(Dollars in Millions)
(Unaudited)
Jun 30, 2024Mar 31, 2024Dec 31, 2023Sep 30, 2023Jun 30, 2023Mar 31, 2023
Insurance Reserves:
Non-Standard Automobile$1,597.1 $1,633.1 $1,711.9 $1,761.6 $1,741.4 $1,805.6 
Commercial Automobile640.5 618.1 596.8 570.3 530.8 491.4 
Insurance Reserves$2,237.6 $2,251.2 $2,308.7 $2,331.9 $2,272.2 $2,297.0 
Insurance Reserves:
Loss and Allocated LAE Reserves:
Case and Allocated LAE$952.8 $965.7 $999.9 $1,048.0 $1,061.7 $1,094.8 
Incurred but Not Reported1,113.1 1,114.8 1,132.8 1,107.7 1,036.7 1,027.0 
Total Loss Reserves2,065.9 2,080.5 2,132.7 2,155.7 2,098.4 2,121.8 
Unallocated LAE Reserves171.7 170.7 176.0 176.2 173.8 175.2 
Insurance Reserves$2,237.6 $2,251.2 $2,308.7 $2,331.9 $2,272.2 $2,297.0 
17

Kemper Corporation
Specialty Property & Casualty Insurance Segment
Personal Automobile Insurance - Results of Operations and Selected Financial Information
(Dollars in Millions)
(Unaudited)
 Three Months EndedSix Months Ended
 Jun 30, 2024Mar 31, 2024Dec 31, 2023Sep 30, 2023Jun 30, 2023Mar 31, 2023Jun 30,
2024		Jun 30,
2023
Results of Operations   
Net Premiums Written$739.5 $672.5 $563.8 $583.9 $687.4 $842.4 $1,412.0 $1,529.8 
Earned Premiums$691.5 $675.3 $699.3 $724.0 $766.6 $787.9 $1,366.8 $1,554.5 
Net Investment Income30.3 26.9 32.3 32.5 33.8 29.9 57.2 63.7 
Change in Value of Alternative Energy Partnership Investments0.2 0.2 0.2 0.4 0.3 0.3 0.4 0.6 
Other Income1.3 1.1 1.3 1.6 0.7 0.9 2.4 1.6 
Total Revenues723.3 703.5 733.1 758.5 801.4 819.0 1,426.8 1,620.4 
Incurred Losses and LAE related to:
Current Year:
Non-catastrophe Losses and LAE471.6 485.7 544.2 583.5 638.7 697.6 957.3 1,336.3 
Catastrophe Losses and LAE7.9 3.5 1.9 5.0 15.0 7.7 11.4 22.7 
Prior Years:
Non-catastrophe Losses and LAE0.6 6.5 (2.2)71.8 18.0 23.4 7.1 41.4 
Catastrophe Losses and LAE— 0.6 — (0.9)(0.9)(0.5)0.6 (1.4)
Total Incurred Losses and LAE480.1 496.3 543.9 659.4 670.8 728.2 976.4 1,399.0 
Insurance Expenses148.0 145.6 151.4 155.3 157.1 162.0 293.6 319.1 
Adjusted Operating Income (Loss)95.2 61.6 37.8 (56.2)(26.5)(71.2)156.8 (97.7)
Income Tax (Expense) Benefit(19.3)(12.3)(7.5)12.4 6.3 15.5 (31.6)21.8 
Total Product Line Adjusted Net Operating Income (Loss)$75.9 $49.3 $30.3 $(43.8)$(20.2)$(55.7)$125.2 $(75.9)
Ratios Based On Earned Premiums
Current Year Non-catastrophe Losses and LAE Ratio68.2 %71.9 %77.8 %80.6 %83.3 %88.5 %70.1 %85.9 %
Current Year Catastrophe Losses and LAE Ratio1.1 0.5 0.3 0.7 2.0 1.0 0.8 1.5 
Prior Years Non-catastrophe Losses and LAE Ratio0.1 1.0 (0.3)9.9 2.3 3.0 0.5 2.7 
Prior Years Catastrophe Losses and LAE Ratio— 0.1 — (0.1)(0.1)(0.1)— (0.1)
Total Incurred Loss and LAE Ratio69.4 73.5 77.8 91.1 87.5 92.4 71.4 90.0 
Insurance Expense Ratio21.4 21.6 21.7 21.5 20.5 20.6 21.5 20.5 
Combined Ratio90.8 %95.1 %99.5 %112.6 %108.0 %113.0 %92.9 %110.5 %
Underlying Combined Ratio1
Current Year Non-catastrophe Losses and LAE Ratio68.2 %71.9 %77.8 %80.6 %83.3 %88.5 %70.1 %85.9 %
Insurance Expense Ratio21.4 21.6 21.7 21.5 20.5 20.6 21.5 20.5 
Underlying Combined Ratio89.6 %93.5 %99.5 %102.1 %103.8 %109.1 %91.6 %106.4 %
Non-GAAP Measure Reconciliation
Combined Ratio90.8 %95.1 %99.5 %112.6 %108.0 %113.0 %92.9 %110.5 %
Less:
Current Year Catastrophe Losses and LAE Ratio1.1 0.5 0.3 0.7 2.0 1.0 0.8 1.5 
Prior Years Non-catastrophe Losses and LAE Ratio0.1 1.0 (0.3)9.9 2.3 3.0 0.5 2.7 
Prior Years Catastrophe Losses and LAE Ratio— 0.1 — (0.1)(0.1)(0.1)— (0.1)
Underlying Combined Ratio89.6 %93.5 %99.5 %102.1 %103.8 %109.1 %91.6 %106.4 %
1Underlying Combined Ratio is a non-GAAP measure, which is computed as the difference between three operating ratios: the combined ratio, the effect of catastrophes (excluding development of prior-year catastrophes) on the combined ratio and the effect of prior-year reserve development at the reporting date (including development on prior-year catastrophes) on the combined ratio.
18

Kemper Corporation
Specialty Property & Casualty Insurance Segment
Commercial Automobile Insurance - Results of Operations and Selected Financial Information
(Dollars in Millions)
(Unaudited)
 Three Months EndedSix Months Ended
 Jun 30, 2024Mar 31, 2024Dec 31, 2023Sep 30, 2023Jun 30, 2023Mar 31, 2023Jun 30,
2024		Jun 30,
2023
Results of Operations   
Net Premiums Written$194.4 $192.1 $155.9 $149.1 $143.2 $179.7 $386.5 $322.9 
Earned Premiums$171.1 $164.7 $166.3 $166.4 $165.7 $156.3 $335.8 $322.0 
Net Investment Income16.3 14.2 10.3 10.2 10.7 8.6 30.5 19.3 
Change in Value of Alternative Energy Partnership Investments0.1 0.1 0.1 0.1 0.1 0.1 0.2 0.2 
Total Revenues187.5 179.0 176.7 176.7 176.5 165.0 366.5 341.5 
Incurred Losses and LAE related to:
Current Year:
Non-catastrophe Losses and LAE121.2 123.3 128.9 128.6 125.2 127.8 244.5 253.0 
Catastrophe Losses and LAE2.4 0.6 0.6 1.2 2.4 0.7 3.0 3.1 
Prior Years:
Non-catastrophe Losses and LAE(1.4)(1.2)2.0 7.0 7.0 8.2 (2.6)15.2 
Catastrophe Losses and LAE(0.1)0.1 0.1 (0.1)— — — — 
Total Incurred Losses and LAE122.1 122.8 131.6 136.7 134.6 136.7 244.9 271.3 
Insurance Expenses32.7 31.3 26.3 27.0 30.4 31.8 64.0 62.2 
Adjusted Operating Income (Loss)32.7 24.9 18.8 13.0 11.5 (3.5)57.6 8.0 
Income Tax (Expense) Benefit(6.3)(5.0)(3.8)(2.4)(2.1)0.8 (11.3)(1.3)
Total Product Line Adjusted Net Operating Income (Loss)$26.4 $19.9 $15.0 $10.6 $9.4 $(2.7)$46.3 $6.7 
Ratios Based On Earned Premiums
Current Year Non-catastrophe Losses and LAE Ratio70.9 %74.8 %77.4 %77.4 %75.6 %81.9 %72.8 %78.6 %
Current Year Catastrophe Losses and LAE Ratio1.4 0.4 0.4 0.7 1.4 0.4 0.9 1.0 
Prior Years Non-catastrophe Losses and LAE Ratio(0.8)(0.7)1.2 4.2 4.2 5.2 (0.8)4.7 
Prior Years Catastrophe Losses and LAE Ratio(0.1)0.1 0.1 (0.1)— — — — 
Total Incurred Loss and LAE Ratio71.4 74.6 79.1 82.2 81.2 87.5 72.9 84.3 
Insurance Expense Ratio19.1 19.0 15.8 16.2 18.3 20.3 19.1 19.3 
Combined Ratio90.5 %93.6 %94.9 %98.4 %99.5 %107.8 %92.0 %103.6 %
Underlying Combined Ratio1
Current Year Non-catastrophe Losses and LAE Ratio70.9 %74.8 %77.4 %77.4 %75.6 %81.9 %72.8 %78.6 %
Insurance Expense Ratio19.1 19.0 15.8 16.2 18.3 20.3 19.1 19.3 
Underlying Combined Ratio90.0 %93.8 %93.2 %93.6 %93.9 %102.2 %91.9 %97.9 %
Non-GAAP Measure Reconciliation
Combined Ratio90.5 %93.6 %94.9 %98.4 %99.5 %107.8 %92.0 %103.6 %
Less:
Current Year Catastrophe Losses and LAE Ratio1.4 0.4 0.4 0.7 1.4 0.4 0.9 1.0 
Prior Years Non-catastrophe Losses and LAE Ratio(0.8)(0.7)1.2 4.2 4.2 5.2 (0.8)4.7 
Prior Years Catastrophe Losses and LAE Ratio(0.1)0.1 0.1 (0.1)— — — — 
Underlying Combined Ratio90.0 %93.8 %93.2 %93.6 %93.9 %102.2 %91.9 %97.9 %
1Underlying Combined Ratio is a non-GAAP measure, which is computed as the difference between three operating ratios: the combined ratio, the effect of catastrophes (excluding development of prior-year catastrophes) on the combined ratio and the effect of prior-year reserve development at the reporting date (including development on prior-year catastrophes) on the combined ratio.
    
19

Kemper Corporation
Life Insurance Segment
Results of Operations and Selected Financial Information
(Dollars in Millions)
(Unaudited)
 Three Months EndedSix Months Ended
 Jun 30, 2024Mar 31, 2024Dec 31, 2023Sep 30, 2023Jun 30, 2023Mar 31, 2023Jun 30,
2024		Jun 30,
2023
Results of Operations  
Earned Premiums$100.8 $97.3 $84.0 $102.1 $102.2 $99.3 $198.1 $201.5 
Net Investment Income30.5 44.3 47.1 49.4 47.1 49.8 74.8 96.9 
Change in Value of Alternative Energy Partnership Investments0.1 0.1 0.1 0.2 0.2 0.2 0.2 0.4 
Other Income (Loss)0.1 0.2 0.2 (0.1)0.1 (0.4)0.3 (0.3)
Total Revenues131.5 141.9 131.4 151.6 149.6 148.9 273.4 298.5 
Policyholders’ Benefits and Incurred Losses and LAE63.9 63.0 40.5 64.7 68.3 69.9 126.9 138.2 
Insurance Expenses69.0 64.9 71.0 69.4 71.2 64.2 133.9 135.4 
Segment Adjusted Operating (Loss) Income(1.4)14.0 19.9 17.5 10.1 14.8 12.6 24.9 
Income Tax Benefit (Expense)1.2 (2.1)(4.9)(2.8)(1.2)(1.6)(0.9)(2.8)
Total Segment Adjusted Net Operating (Loss) Income$(0.2)$11.9 $15.0 $14.7 $8.9 $13.2 $11.7 $22.1 
    

20

Kemper Corporation
Life Insurance Segment
Results of Operations and Selected Financial Information (continued)
(Dollars in Millions)
(Unaudited)

Jun 30, 2024Mar 31, 2024Dec 31,
2023		Sep 30, 2023Jun 30, 2023Mar 31, 2023
Insurance Reserves:
Future Policyholder Benefits$3,155.3 $3,248.8 $3,375.6 $3,048.7 $3,315.2 $3,346.9 
Incurred Losses and LAE Reserves:
Life42.1 40.7 42.1 44.6 44.2 48.3 
Accident and Health4.6 4.7 4.7 4.8 4.4 4.4 
Property2.6 2.5 2.9 2.7 2.6 2.7 
Total Incurred Losses and LAE Reserves49.3 47.9 49.7 52.1 51.2 55.4 
Insurance Reserves$3,204.6 $3,296.7 $3,425.3 $3,100.8 $3,366.4 $3,402.3 


21

Kemper Corporation
Expenses
(Dollars in Millions)
(Unaudited)
 Three Months EndedSix Months Ended
 Jun 30, 2024Mar 31, 2024Dec 31, 2023Sep 30, 2023Jun 30, 2023Mar 31, 2023Jun 30,
2024		Jun 30,
2023
Insurance Expenses: 
Commissions$152.0 $139.9 $121.2 $130.8 $165.3 $166.9 $291.9 $332.2 
General Expenses84.6 85.3 88.2 85.9 74.5 94.2 169.9 168.7 
Premium Taxes19.6 19.1 17.7 17.8 20.5 23.6 38.7 44.1 
Total Costs Incurred256.2 244.3 227.1 234.5 260.3 284.7 500.5 545.0 
Net Policy Acquisition Costs (Deferred) Amortized(12.5)(4.1)30.4 24.0 5.3 (15.9)(16.6)(10.6)
Amortization of Valuation of Business Acquired ("VOBA")0.6 0.5 0.5 0.5 0.5 0.5 1.1 1.0 
Insurance Expenses$244.3 $240.7 $258.0 $259.0 $266.1 $269.3 $485.0 $535.4 
Interest and Other Expenses:
Interest Expense$13.9 $14.0 $13.9 $14.1 $14.0 $14.1 $27.9 $28.1 
Other Expenses:
Acquisition and Disposition Related Transaction, Integration, Restructuring and Other Costs6.5 12.8 18.4 43.3 29.5 29.1 19.3 58.6 
Pension Settlement(2.7)— — 70.2 — — (2.7)— 
Other31.6 32.9 25.3 28.4 34.8 34.2 64.5 69.0 
Other Expenses35.4 45.7 43.7 141.9 64.3 63.3 81.1 127.6 
Interest and Other Expenses49.3 59.7 57.6 156.0 78.3 77.4 109.0 155.7 
Goodwill Impairment— — — — 49.6 — — 49.6 
Total Expenses$293.6 $300.4 $315.6 $415.0 $394.0 $346.7 $594.0 $740.7 

22

Kemper Corporation
Details of Investment Performance
(Dollars in Millions)
(Unaudited)
 
Three Months Ended
Six Months Ended
 Jun 30, 2024Mar 31, 2024Dec 31, 2023Sep 30, 2023Jun 30, 2023Mar 31, 2023Jun 30,
2024		Jun 30,
2023
Net Investment Income  
Interest on Fixed Income Securities1,2
$80.2 $79.8 $81.0 $81.2 $79.6 $81.5 $160.0 $161.1 
Dividends on Equity Securities Excluding Alternative Investments0.9 2.8 1.0 1.2 1.2 1.0 3.7 2.2 
Alternative Investments:
Equity Method Limited Liability Investments(14.7)(2.1)2.3 4.3 2.8 1.1 (16.8)3.9 
Limited Liability Investments Included in Equity Securities6.2 3.4 4.7 5.4 6.3 2.6 9.6 8.9 
Total Alternative Investments(8.5)1.3 7.0 9.7 9.1 3.7 (7.2)12.8 
Short-term Investments7.3 7.3 6.1 6.0 3.6 2.3 14.6 5.9 
Loans to Policyholders5.1 5.2 5.3 5.1 5.1 5.4 10.3 10.5 
Real Estate2.2 2.3 2.3 2.3 1.9 2.4 4.5 4.3 
Company-Owned Life Insurance
8.9 7.1 6.6 6.4 7.4 8.8 16.0 16.2 
Other2.6 2.5 2.8 1.8 5.3 3.0 5.1 8.3 
Total Investment Income98.7 108.3 112.1 113.7 113.2 108.1 207.0 221.3 
Investment Expenses:
Real Estate2.1 2.2 2.8 1.7 2.2 2.1 4.3 4.3 
Other Investment Expenses1,2
3.6 5.7 4.7 5.0 4.7 4.2 9.3 8.9 
Total Investment Expenses5.7 7.9 7.5 6.7 6.9 6.3 13.6 13.2 
Net Investment Income$93.0 $100.4 $104.6 $107.0 $106.3 $101.8 $193.4 $208.1 
Net Realized Investment Gains (Losses)
Fixed Maturities:
Gains on Sales$2.2 $12.8 $3.6 $0.8 $0.4 $1.1 $15.0 $1.5 
Losses on Sales(0.3)(2.3)(0.4)(1.2)(6.0)(3.3)(2.6)(9.3)
Gains (Losses) on Hedging Activity— (7.9)17.8 (29.4)(8.7)8.4 (7.9)(0.3)
Equity Securities:
Gains on Sales— 4.1 — 0.5 0.1 — 4.1 0.1 
Losses on Sales— (0.1)(1.3)(1.1)(0.1)— (0.1)(0.1)
Other Investments:
Gains on Sales1.5 — — — — 0.2 1.5 0.2 
Losses on Sales(1.9)— — 0.1 (0.1)— (1.9)(0.1)
Net Realized Investment Gains (Losses)$1.5 $6.6 $19.7 $(30.3)$(14.4)$6.4 $8.1 $(8.0)
Net Impairment Losses Recognized in Earnings
Fixed Maturities$0.2 $(1.0)$(0.7)$(2.0)$— $2.1 $(0.8)$2.1 
Equity Securities— (0.4)(0.5)— — — (0.4)— 
Real Estate(0.1)— — — — — (0.1)— 
Other(0.2)(0.1)— — — — (0.3)— 
Net Impairment Losses Recognized in Earnings$(0.1)$(1.5)$(1.2)$(2.0)$— $2.1 $(1.6)$2.1 
1In the first quarter of 2024, the Company changed its presentation of the details of investment performance to report interest expense incurred on Federal Home Loan Bank ("FHLB") borrowings as an offset to interest on fixed income securities since FHLB borrowings are used for spread lending purposes. The interest expense incurred on FHLB borrowings was previously reported within Other Investment Expenses. The prior period amounts presented above have been updated to reflect this change in presentation.
2Reduced by interest expense incurred on FHLB borrowings used for spread lending purposes of $5.4 million, $5.2 million, $5.2 million, $5.3 million, $7.5 million, $4.7 million, for the three months ended June 30, 2024, March 31, 2024, December 31, 2023, September 30, 2023, June 30, 2023 and March 31, 2023, respectively.
 
23

Kemper Corporation
Details of Invested Assets
(Dollars in Millions)
(Unaudited)
 Jun 30, 2024Dec 31, 2023Dec 31, 2022
 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$475.5 5.5 %$511.5 5.7 %$528.0 6.0 %
States and Political Subdivisions1,339.7 15.4 1,401.9 15.7 1,568.9 17.8 
Foreign Governments 4.6 0.1 3.8 — 4.1 — 
Corporate Securities:
Bonds and Notes3,586.6 41.4 3,690.8 41.4 3,539.4 40.4 
Redeemable Preferred Stocks9.9 0.1 8.3 0.1 8.0 0.1 
Collateralized Loan Obligations885.9 10.2 949.8 10.7 953.9 10.9 
Other Mortgage- and Asset-backed372.5 4.3 315.8 3.5 292.5 3.3 
Total Fixed Maturities Reported at Fair Value6,674.7 77.0 6,881.9 77.1 6,894.8 78.5 
Equity Securities Reported at Fair Value:
Preferred Stocks24.9 0.3 25.5 0.3 39.8 0.5 
Common Stocks2.7 — 1.2 — 2.1 — 
Other Equity Interests:
Exchange Traded Funds9.7 0.1 7.7 0.1 12.2 0.1 
Limited Liability Companies and Limited Partnerships189.3 2.2 191.4 2.1 189.1 2.2 
Total Equity Securities Reported at Fair Value226.6 2.6 225.8 2.5 243.2 2.8 
Equity Method Limited Liability Investments205.1 2.4 221.7 2.5 217.0 2.5 
Alternative Energy Partnership Investments17.3 0.2 17.3 0.2 16.3 0.2 
Short-term Investments at Cost which Approximates Fair Value539.1 6.2 520.9 5.9 278.4 3.2 
Company Owned Life Insurance523.3 6.0 513.5 5.8 586.5 6.7 
Loans to Policyholders279.8 3.2 281.2 3.2 283.4 3.2 
Other Investments:
Equity Securities Reported at Modified Cost24.8 0.3 32.6 0.4 38.4 0.4 
Convertible Securities at Fair Value— — — — 43.3 0.5 
Real Estate at Depreciated Cost93.6 1.1 94.7 1.1 93.6 1.1 
Mortgage Loans83.1 1.0 99.8 1.1 91.1 1.0 
Other0.9 — 14.8 0.2 3.5 — 
Total Other Investments202.4 2.4 241.9 2.8 269.9 3.0 
Total Investments$8,668.3 100.0 %$8,904.2 100.0 %$8,789.5 100.0 %
1Sum of percentages for individual lines may not equal subtotals and grand total due to rounding.
24

Kemper Corporation
Details of Invested Assets (continued)
(Dollars in Millions)
(Unaudited)
 Jun 30, 2024Dec 31, 2023Dec 31, 2022
 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
$4,749.4 71.2 %$4,962.0 72.1 %$4,896.4 71.0 %
BBB
1,616.3 24.2 1,657.3 24.1 1,687.4 24.5 
BB, B
246.8 3.7 204.4 3.0 239.7 3.5 
CCC or Lower
62.2 0.9 58.2 0.8 71.3 1.0 
Total Investments in Fixed Maturities
$6,674.7 100.0 %$6,881.9 100.0 %$6,894.8 100.0 %
Duration (in Years)
Total Investments in Fixed Maturities
7.8 8.1 8.2 
1Sum of percentages for individual lines may not equal subtotals and grand total due to rounding.

25

Kemper Corporation
Investment Concentration
(Dollars in Millions)
(Unaudited)
 Jun 30, 2024Dec 31, 2023Dec 31, 2022
Fair Value of Non-governmental Fixed Maturities by IndustryAmountPercent
of Total
Investments		AmountPercent
of Total
Investments		AmountPercent
of Total
Investments
Finance, Insurance and Real Estate$2,053.2 23.7 %$2,070.5 23.3 %$2,007.5 22.8 %
Manufacturing1,029.8 11.9 1,077.6 12.1 1,085.9 12.4 
Transportation, Communication and Utilities808.1 9.3 807.3 9.1 733.7 8.3 
Services614.0 7.1 639.4 7.2 602.4 6.9 
Mining156.8 1.8 174.3 2.0 173.3 2.0 
Retail Trade132.2 1.5 156.0 1.8 165.1 1.9 
Construction11.9 0.1 4.4 — 11.7 0.1 
Other48.9 0.6 35.2 0.4 14.2 0.2 
Total Fair Value of Non-governmental Fixed Maturities$4,854.9 56.0 %$4,964.7 55.9 %$4,793.8 54.6 %
 
Jun 30, 2024
Ten Largest Investment Exposures1
Fair
Value		Percent
of Total
Investments
Fixed Maturities:
States including their Political Subdivisions:
California $137.4 1.6 %
Texas110.4 1.3 
Michigan84.3 1.0 
New York74.9 0.9 
Georgia71.0 0.8 
Louisiana 59.2 0.7 
Pennsylvania57.2 0.7 
Florida55.1 0.6 
Colorado44.5 0.5 
Missouri38.5 0.4 
Total$732.5 8.5 %
1Excluding Investments in U.S. Government and Government Agencies and Authorities at June 30, 2024.


 

26

Kemper Corporation
Municipal Bond Securities
(Dollars in Millions)
(Unaudited)
 Jun 30, 2024
State
General
Obligation		Political
Subdivision
General
Obligation		RevenueTotal Fair
Value
Percent
of Total
Muni Bond1
Percent
of Total
Investments1
California$8.5 $128.9 $— $137.4 10.2 %1.6 %
Texas10.3 96.8 3.4 110.5 8.2 1.3 
Michigan— 74.3 10.0 84.3 6.3 1.0 
New York11.9 63.0 — 74.9 5.6 0.9 
Georgia3.5 63.2 4.3 71.0 5.3 0.8 
Louisiana4.3 24.0 30.9 59.2 4.4 0.7 
Pennsylvania3.0 54.2 — 57.2 4.3 0.7 
Florida— 55.1 — 55.1 4.1 0.6 
Colorado— 44.5 — 44.5 3.3 0.5 
Missouri1.1 37.4 — 38.5 2.9 0.4 
Virginia— 30.3 6.1 36.4 2.7 0.4 
New Mexico— 32.9 — 32.9 2.4 0.4 
Ohio— 32.0 — 32.0 2.4 0.4 
Illinois0.6 30.4 — 31.0 2.3 0.4 
Oregon2.3 17.7 10.9 30.9 2.3 0.4 
Massachusetts— 24.0 5.2 29.2 2.2 0.3 
Minnesota1.0 27.0 — 28.0 2.1 0.3 
Maryland— 26.5 — 26.5 2.0 0.3 
Tennessee3.2 19.4 — 22.6 1.7 0.3 
Oklahoma— 22.6 — 22.6 1.7 0.3 
Washington1.3 18.4 2.6 22.3 1.7 0.3 
Rhode Island1.5 18.2 — 19.7 1.5 0.2 
North Carolina1.7 17.1 — 18.8 1.4 0.2 
Connecticut— 16.2 2.6 18.8 1.4 0.2 
New Hampshire0.4 17.9 — 18.3 1.4 0.2 
District of Columbia— 15.3 2.7 18.0 1.3 0.2 
Mississippi— 10.5 7.5 18.0 1.3 0.2 
Indiana— 17.6 — 17.6 1.3 0.2 
Arizona— 14.3 — 14.3 1.1 0.2 
South Carolina— 13.9 — 13.9 1.0 0.2 
Kentucky— 13.4 — 13.4 1.0 0.2 
North Dakota— 12.8 — 12.8 1.0 0.1 
Alabama— 12.5 — 12.5 0.9 0.1 
Utah— 11.6 — 11.6 0.9 0.1 
Iowa— 11.6 — 11.6 0.9 0.1 
New Jersey— 9.9 — 9.9 0.7 0.1 
Nebraska— 9.2 — 9.2 0.7 0.1 
Montana— 9.1 — 9.1 0.7 0.1 
Hawaii3.4 2.8 2.7 8.9 0.7 0.1 
All Other States2.5 31.5 2.3 36.3 2.7 0.4 
Total$60.5 $1,188.0 $91.2 $1,339.7 100.0 %15.5 %
1Sum of percentages for individual lines may not equal total due to rounding.
27

Kemper Corporation
Investments in Limited Liability
Companies and Limited Partnerships
(Dollars in Millions)
(Unaudited)
 Unfunded
Commitment		Reported Value
Asset ClassJun 30,
2024		Jun 30,
2024		Dec 31,
2023
Reported as Equity Method Limited Liability Investments:
Mezzanine Debt$42.1 $126.0 $125.4 
Senior Debt36.4 22.4 19.0 
Secondary Transactions1.6 6.8 7.9 
Leveraged Buyout0.6 7.9 8.6 
Real Estate— 27.2 41.9 
Distressed Debt— 4.9 7.9 
Growth Equity— 0.8 1.2 
Hedge Fund— 0.1 0.1 
Other0.1 9.0 9.7 
Total Equity Method Limited Liability Investments80.8 205.1 221.7 
Alternative Energy Partnership Investments— 17.3 17.3 
Reported as Other Equity Interests at Fair Value:
Mezzanine Debt65.9 124.1 124.0 
Distressed Debt13.7 11.4 12.4 
Leveraged Buyout9.2 19.2 19.0 
Growth Equity9.1 6.6 6.4 
Senior Debt7.7 25.1 24.8 
Secondary Transactions3.0 2.8 2.8 
Hedge Funds— — 1.9 
Other0.2 0.1 0.1 
Total Reported as Other Equity Interests at Fair Value108.8 189.3 191.4 
Reported as Other Equity Interests at Modified Cost:
Other— 4.6 4.8 
Total Reported as Other Equity Interests at Modified Cost— 4.6 4.8 
Total Investments in Limited Liability Companies and Limited Partnerships$189.6 $416.3 $435.2 

28

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.

Adjusted Consolidated Net Operating Income (Loss) is an after-tax, non-GAAP financial measure and is computed by excluding from Net Income (Loss) attributable to Kemper Corporation the after-tax impact of:

(i) Change in Fair Value of Equity and Convertible Securities;
(ii) Net Realized Investment Gains (Losses);
(iii) Impairment Losses;
(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 Income (Loss) attributable to Kemper Corporation. There were no applicable significant non-recurring items that the Company excluded from the calculation of Adjusted Consolidated Net Operating Income (Loss) for the three and six months ended June 30, 2024 or 2023.

The Company believes that Adjusted Consolidated Net Operating Income (Loss) provides investors with a valuable measure of its ongoing performance because it reveals underlying operational performance trends that otherwise might be less apparent if the items were not excluded. Change in Fair Value of Equity and Convertible Securities, Net Realized Investment Gains (Losses) and Impairment Losses related to investments included in the Company’s results may vary significantly between periods and are generally driven by business decisions and external economic developments such as capital market conditions that impact the values of the Company’s investments, the timing of which is unrelated to the insurance underwriting process. Acquisition 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.























29

Kemper Corporation
Definitions of Non-GAAP Financial Measures (continued)


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

 Three Months EndedSix Months Ended
Dollars in Millions (Unaudited)Jun 30, 2024Mar 31, 2024Dec 31, 2023Sep 30, 2023Jun 30, 2023Mar 31, 2023Jun 30,
2024		Jun 30,
2023
Net Income (Loss) attributable to Kemper Corporation$75.4 $71.3 $51.4 $(146.3)$(97.1)$(80.1)$146.7 $(177.2)
Less Net (Loss) Income From:
Change in Fair Value of Equity and Convertible Securities(1.0)2.7 (1.8)2.3 1.9 1.3 1.7 3.2 
Net Realized Investment Gains (Losses)1.2 5.2 15.6 (22.9)(12.5)5.1 6.4 (7.4)
Impairment Losses(0.1)(1.2)(1.0)(0.8)(0.8)1.7 (1.3)0.9 
Acquisition and Disposition Related Transaction, Integration, Restructuring and Other Costs(5.1)(10.1)(14.4)(34.3)(23.3)(23.0)(15.2)(46.3)
Debt Extinguishment, Pension Settlement and Other Charges2.1 — — (55.5)— — 2.1 — 
Goodwill Impairment Charge— — — — (45.5)— — (45.5)
Non-Core Operations(13.4)5.0 2.5 (7.3)(2.7)(9.5)(8.4)(12.2)
Adjusted Consolidated Net Operating Income (Loss)$91.7 $69.7 $50.5 $(27.8)$(14.2)$(55.7)$161.4 $(69.9)

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

 Three Months EndedSix Months Ended
Dollars in Millions (Unaudited)Jun 30, 2024Mar 31, 2024Dec 31, 2023Sep 30, 2023Jun 30, 2023Mar 31, 2023Jun 30,
2024		Jun 30,
2023
Net Income (Loss) attributable to Kemper Corporation per Unrestricted Share
$1.17 $1.11 $0.80 $(2.28)$(1.52)$(1.25)$2.28 $(2.77)
Less Net (Loss) Income per Unrestricted Share From:
Change in Fair Value of Equity and Convertible Securities(0.02)0.04 (0.03)0.04 0.03 0.02 0.03 0.05 
Net Realized Investment Gains (Losses)0.02 0.09 0.24 (0.35)(0.20)0.08 0.10 (0.12)
Impairment Losses— (0.02)(0.01)(0.01)(0.02)0.03 (0.02)0.01 
Acquisition and Disposition Related Transaction, Integration, Restructuring and Other Costs(0.08)(0.16)(0.23)(0.54)(0.36)(0.36)(0.24)(0.72)
Debt Extinguishment, Pension Settlement and Other Charges0.03 — — (0.87)— — 0.03 — 
Goodwill Impairment Charge— — — — (0.71)— — (0.71)
Non-Core Operations(0.21)0.08 0.04 (0.11)(0.04)(0.15)(0.13)(0.19)
Adjusted Consolidated Net Operating Income (Loss) per Unrestricted Share$1.43 $1.08 $0.79 $(0.44)$(0.22)$(0.87)$2.51 $(1.09)






30

Kemper Corporation
Definitions of Non-GAAP Financial Measures (continued)


Return on Adjusted Shareholders' Equity is a calculation that uses a non-GAAP financial measure. It is calculated by dividing the period’s net income attributable to Kemper Corporation by the average shareholders’ equity excluding net unrealized gains and losses on fixed maturities, the change in discount rate on future life policyholder benefits and goodwill. Return on Shareholders' Equity is the most directly comparable GAAP measure. We use this non-GAAP measure to identify and analyze the change in performance attributable to management efforts between periods. The Company believes this 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. The “Return on Adjusted Shareholders’ Equity” metric was referred to as “Return on Tangible Shareholders’ Equity” in prior periods.

A reconciliation of Return on Shareholders’ Equity to Return on Adjusted Shareholders' Equity is presented below:

 Three Months EndedSix Months Ended
Dollars in Millions (Unaudited)Jun 30, 2024Mar 31, 2024Dec 31, 2023Sep 30, 2023Jun 30, 2023Mar 31, 2023Jun 30,
2024		Jun 30,
2023
Numerator:
Annualized Net Income (Loss) attributable to Kemper Corporation$301.6 $285.2 $205.6 $(585.2)$(388.4)$(320.4)$293.4 $(354.4)
Denominator:
Average Shareholders' Equity1
$2,630.5 $2,547.5 $2,433.3 $2,436.8 $2,579.6 $2,658.8 $2,588.7 $2,609.9 
Less: Average Net Unrealized Gains and Losses on Fixed Maturities
652.2 576.1 716.9 770.3 607.3 645.5 612.7 643.9 
Less: Average Change in Discount Rate on Future Life Policyholder Benefits
(315.1)(216.3)(286.7)(303.6)(174.3)(197.7)(263.5)(196.6)
Less: Average Goodwill
(1,250.7)(1,250.7)(1,250.7)(1,250.7)(1,275.5)(1,300.3)(1,250.7)(1,283.8)
Average Adjusted Shareholders' Equity1
$1,716.9 $1,656.6 $1,612.8 $1,652.8 $1,737.1 $1,806.3 $1,687.2 $1,773.4 
Return on Shareholders' Equity:
Return on Shareholders' Equity11.5 %11.2 %8.4 %(24.0)%(15.1)%(12.1)%11.3 %(13.6)%
Return on Adjusted Shareholders' Equity17.6 %17.2 %12.7 %(35.4)%(22.4)%(17.7)%17.4 %(20.0)%
1Average shareholders' equity and average adjusted shareholders’ equity for the three months ended is the simple average of the beginning and ending balances for the period. Average shareholders’ equity and average adjusted shareholders’ equity on a year-to-date basis is the (a) the sum of the balance at the beginning of the year and the ending balance for each quarter within that year divided by (b) the number of quarters in the period presented plus one.

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.






31

Kemper Corporation
Definitions of Non-GAAP Financial Measures (continued)


Adjusted Book Value Per Share 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. The “Adjusted Book Value Per Share” metric was referred to as “Tangible Book Value Per Share” in prior periods.

A reconciliation of Book Value Per Share to Adjusted Book Value Per Share is presented below:

 As of
Dollars and Shares in Millions Except Per Share Amounts (Unaudited)Jun 30, 2024Mar 31, 2024Dec 31, 2023Sep 30, 2023Jun 30, 2023Mar 31, 2023
Numerator:
Kemper Corporation Shareholders’ Equity$2,671.2 $2,589.8 $2,505.2 $2,361.3 $2,512.2 $2,646.9 
Less: Net Unrealized Gains and Losses on Fixed Maturities
685.9 618.4 533.8 900.1 640.5 574.2 
Less: Change in Discount Rate on Future Life Policyholder Benefits
(358.0)(272.1)(160.6)(412.8)(194.4)(154.2)
Less: Goodwill
(1,250.7)(1,250.7)(1,250.7)(1,250.7)(1,250.7)(1,300.3)
Adjusted Shareholders' Equity
$1,748.4 $1,685.4 $1,627.7 $1,597.9 $1,707.6 $1,766.6 
Denominator:
Common Shares Issued and Outstanding64.42764.35864.11264.08164.05463.982
Book Value Per Share:
Book Value Per Share
$41.46 $40.24 $39.08 $36.85 $39.22 $41.37 
Less: Net Unrealized Gains and Losses on Fixed Maturities
10.65 9.61 8.33 14.05 10.00 8.97 
Less: Change in Discount Rate on Future Life Policyholder Benefits
(5.56)(4.23)(2.51)(6.44)(3.03)(2.41)
Less: Goodwill
(19.41)(19.43)(19.51)(19.52)(19.53)(20.32)
Adjusted Book Value Per Share
$27.14 $26.19 $25.39 $24.94 $26.66 $27.61 
32
Earnings Call Presentation – 2Q 2024 Second Quarter 2024 Earnings August 5, 2024

 
Earnings Call Presentation – 2Q 2024 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 or incidents; • 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 – 2Q 2024 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 insurance1 for underserved markets; Latino, Hispanic and urban areas Life insurance2 for low/moderate income customers Market Characteristics Differentiated Capabilities Product SophisticationEase of UseLow-Cost Management Enable Systematic, Sustainable Competitive Advantages (SSCAs) 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 – 2Q 2024 Second Quarter 2024 Summary 4 Specialty P&C underwriting profit further improved; sequential quarterly PIF grew 4.6% Specialty P&C profitability continued to improve; focused on new business expansion • Underlying combined ratio1 improved 4.0 pts sequentially to 89.6%; 12.4 pts year-over-year • Specialty P&C new business accelerated; achieving 4.6% sequential quarter PIF growth • Underlying business fundamentals in Life business remain stable ̶ Quarterly results impacted by lower NII driven by valuation adjustment on real estate investment • Exit of preferred P&C business slightly ahead of schedule ̶ Released over $44 million of capital during 2Q’24; anticipate additional $50+ million by YE’24 2nd Quarter Operating Performance Achieved return on equity within low double digit target range • ROE of 11.5% and Adjusted ROE1 of 17.6% • Net Income attributable to Kemper Corporation of $75.4 million or $1.16 per diluted share • Adjusted Consolidated Net Operating Income1 of $91.7 million or $1.42 per diluted share • Book Value Per Share increased sequentially by $1.22 to $41.46 – Adjusted Book Value Per Share1 increased sequentially by $0.95 to $27.14 Shareholder Value Creation Strong capital position provides financial flexibility • Parent company liquidity of approximately $1.1 billion • Insurance companies are well capitalized • Focus on returning to target long-term debt-to-capital ratio; anticipate mid-20% by year-end 2025 Balance Sheet Strength 1 Non-GAAP financial measure; please see reconciliation in appendix on pages 17-22

 
Earnings Call Presentation – 2Q 2024 Jun 30, 2024 Mar 31, 2024 Specialty P&C PIF Sequential Quarterly Change 4.6% (5.5)% Quarter Ended ($ in millions, except per share amounts) Jun 30, 2024 Jun 30, 2023 Net Income (Loss) Per Diluted Share attributable to Kemper Corporation $1.16 $(1.52) Adj. Consolidated Net Operating Income (Loss) – Per Diluted Share1 $1.42 $(0.22) Book Value – Per Diluted Share $41.46 $39.22 Adjusted Book Value – Per Diluted Share1 $27.14 $26.66 Return on Shareholders’ Equity 11.5% (15.1)% Return on Adjusted Shareholders’ Equity1 17.6% (22.4)% Life Face Value of In-Force YoY Change (0.6)% (0.6)% Specialty P&C Earned Premium YoY Change (7.4)% (10.7)% Second Quarter 2024 Financial Summary 5 Delivered fifth consecutive quarter of underlying business improvement 1 Non-GAAP financial measure; please see reconciliation in appendix on pages 17-22 Specialty P&C PIF grew 4.6% sequentially; delivered an overall 11.5% ROE in 2Q’24

 
Earnings Call Presentation – 2Q 2024 Well-Capitalized Insurance Subsidiaries 6 Continued access to significant sources of liquidity Strong capital and liquidity position; actions underway to improve leverage metrics 17.6% 23.2% 24.1% 30.3% 32.6% 31.8% 2019 2020 2021 2022 2023 2Q'24 Debt-to-Capital 3 Parent Company Liquidity Risk-Based Capital Ratios¹ $660 $700 $704 $918 $683 $747 $207 $733 $234 $418 $465 $377 $867 $1,433 $938 $1,336 $1,148 $1,124 2019 2020 2021 2022 2023 2Q'24 (% ) Debt Cash Flow from Operating Activities ($ in m ill io n s) $534 $448 $351 $(210) $(134) $(2) 2019 2020 2021 2022 2023 2Q'24 TTM HoldCo Cash & Investments Borrowings Available Under Credit Agreement & from Subs P&C (ex. AACC) Life2 1 2Q’24 Risk-Based Capital Ratios shown are estimates calculated at the Company Action Level from aggregate financials of all separate insurance companies within each segment. NAIC annually reported entity-level RBCs will differ. 2 Excludes business ceded to Kemper Bermuda Ltd. (KBL) | 3 Excludes AOCI: closely aligns with rating agencies and post-LDTI implementation ($ in m ill io n s) 355 340 355 645 465 510 365 330 220 240 275 335 2019 2020 2021 2022 2023 2Q'24

 
Earnings Call Presentation – 2Q 2024 Diversified Investment Portfolio with Consistent Returns 7 56% 15% 6% 6% 5% 6% 6% Other States/ Munis COLI 71% 24% 4% 1% Diversified and Highly-Rated Portfolio Fixed Maturity Ratings $6.7 Billion A or Higher ≤ CCCB / BB BBB • High-quality portfolio provides consistent net investment income; 71% of fixed income portfolio rated A or higher • 4.6% pre-tax equivalent (PTE) annualized book yield on core portfolio • Average investment grade new money yields approximately 6.5% for the quarter • Lower net investment income driven by valuation adjustment on real estate investment $97 $97 $98 $99 $102 $9 $10 $7 $1 $(9) $106 $107 $105 $100 $93 2Q'23 3Q'23 4Q'23 1Q'24 2Q'24 Core Portfolio Alternative Inv. Portfolio Net Investment Income1 Highlights Corporates Alternatives U.S Gov’t Portfolio Composition2 PTE Annualized Book Yield Contribution $8.7 Billion Short Term ($ in m ill io n s) 1 Non-Core Operations reflects $13, $13, $13, $12, and $13 million related to Preferred P&C in 2Q’23, 3Q’23, 4Q’23, 1Q’24, and 2Q’24, respectively | 2 Other category includes Equity Securities, which excludes $194 million of Other Equity Interests of LPs/LLCs that have been reclassified into Alternative Investments; COLI represents Company Owned Life Insurance 4.1% 4.2% 4.2% 4.2% 4.4% 0.4% 0.4% 0.3% 0.1% (0.4)% 4.5% 4.6% 4.5% 4.3% 4.0% 2Q'23 3Q'23 4Q'23 1Q'24 2Q'24 Core Portfolio Alt. Inv. Portfolio (ex. Solar)

 
Earnings Call Presentation – 2Q 2024 Specialty Property & Casualty Insurance Segment 8 Underlying combined ratio1 improved 4 pts sequentially and PIF grew 4.6% sequentially 102.0 100.5 98.2 93.6 89.6 2Q'23 3Q'23 4Q'23 1Q'24 2Q'24 Underlying Combined Ratio1 (% ) Highlights • Underlying Combined Ratio improved 4.0 pts sequentially to 89.6% – PPA earned rate of ~8 pts in 2Q’24 drove improvement • PIF increased 4.6% since 1Q’24 – Improved combined ratio allowed for further expansion within margin of safety Metrics ($ in millions) 2Q’24 2Q’23 Variance Earned Premiums $863 $932 (7.4)% Underlying Loss & LAE Ratio1 68.7% 81.9% (13.2) pts Expense Ratio 20.9% 20.1% 0.8 pts Policies In-Force (000s) 1,201 1,501 (20.0)% 2Q’24 1Q’24 PIF– Sequential Quarter Chg 4.6% (5.5)% 10.1 pts Cumulative PPA Rate Activity Since 2Q’212 Focused on long-term profitable growth ~59% ~58% ~53% Filed Rate Written Rate Earned Rate 1 Non-GAAP financial measure; see reconciliation in appendix on pages 17-22 2 Represents the cumulative weighted average rate impact of actual filings on the total book 12.4 pts

 
Earnings Call Presentation – 2Q 2024 Specialty Auto – Policies In Force Metrics Continue to Improve 9 New business expansion led to sequential quarter PIF increase Commentary Year-Over-Year PIF Change • During periods of significant change, sequential quarter PIF variance provides more insight into new business trends • Sequential quarter PIF – Metric represents more responsive measure – Increased 4.6% vs. down 5.5% in 1Q’24; improved by 10.1 points – Annualized rate of 19.8% vs. (20.3)% for prior quarter • YoY PIF – Rolling four-quarter nature of YoY metric represents trailing indicator – Declined ~20% in 2Q’24 vs. ~32% in 1Q’24 and 4Q’23 • Sequential quarter 2H’24 PIF outlook – Consumer shopping typically lower in 2H; results in moderating 2H’24 PIF growth Anticipate low single digit sequential quarterly PIF growth for remainder of 2024 Sequential Quarter PIF Change

 
Earnings Call Presentation – 2Q 2024 Life Insurance Segment 10 Business fundamentals remain stable Underlying business continues to generate strong return on capital and distributable cash flows $102 $102 $99 $97 $101 $47 $49 $47 $44 $30 $149 $151 $146 $141 $131 2Q'23 3Q'23 4Q'23 1Q'24 2Q'24 Normalized Revenues2 ($ in millions) Earned Premiums Net Investment Income • Modest inflationary pressure continues to impact low-to-moderate income consumers – However, new business production and persistency are slightly favorable to prior year • Mortality in line with pre-pandemic experience • Quarterly NOI negatively impacted by ~$12 million valuation adjustment on real estate investment Highlights Metrics ($ in millions, except per policy amounts) 2Q’24 2Q’23 Variance Life Total Segment Adjusted Net Operating Income $(0) $9 (100.0)% Face Value of In-Force $19,932 $20,052 (0.6)% Avg. Face Value per Policy $6,419 $6,313 1.7% Avg. Premium per Policy Issued1 $622 $598 4.0% 1 Annual basis | 2 Excludes earned premium impact from annual LDTI actuarial assumption update (4Q'23: -$15 million)

 
Earnings Call Presentation – 2Q 2024 Key Takeaways 11 Returning focus to long-term profitable growth Specialty P&C • Sequential underlying results improved for the fifth consecutive quarter • Strong 2Q’24 underwriting profit with underlying combined ratio of 89.6% • PIF increased 4.6% from 1Q’24 • Expect low single digit sequential quarter PIF growth for remainder of 2024 Life • Underlying business fundamentals remain stable Investment Portfolio • High quality and well diversified; no change to long-term philosophy or execution • Anticipate quarterly net investment income to revert to normal levels

 
Earnings Call Presentation – 2Q 2024 Appendix 12

 
Earnings Call Presentation – 2Q 2024 CRE Exposure Predominately High-Quality Fixed Maturities 13 Commercial real estate exposure represents ~8% of total investment portfolio CMBS $371 Corporate Bond REITs $113 Real Estate Properties $94 Mortgage Loans $83 Real Estate Funds $27 70% Fixed Maturities Average Rating AA 30% Other Investments & Alternatives Other Investments & Alternatives1 Asset Class $(M) % Total Portfolio RE Properties $94 1.1% Res Mort Loans $83 1.0% RE Funds $27 0.3% $688 Million Commercial Real Estate Exposure 1 As of June 30, 2024 Fixed Maturities1 Asset Class $(M) % Total Portfolio CMBS $371 4.3% Corp Bond REITs $113 1.3% ($ in millions)

 
Earnings Call Presentation – 2Q 2024 CRE Portfolio Consists of Diversified Underlying Property Types 14 Office exposure represents ~2% of total investment portfolio $688 Million Commercial Real Estate Exposure Breakdown 1 As of June 30, 2024 Diverse Property Type Mix1 Type $(M) % CRE % Total Portfolio Multifamily $245 36% 2.8% Office $188 27% 2.2% Retail $63 9% 0.7% Mixed Use $49 7% 0.6% Single Fam Rental $40 6% 0.5% Hotel $29 4% 0.3% Warehouse $25 4% 0.3% Healthcare $15 2% 0.2% Industrial $14 2% 0.2% Self Storage $12 2% 0.1% Other $8 1% 0.1%

 
Earnings Call Presentation – 2Q 2024 2024 Reinsurance Program 15 Renewed Catastrophe XoL Reinsurance • New policy effective January 1, 2024: ̶ New limit aligned with risk-appetite ̶ New structure improves overall cost of capital for Kemper Catastrophe Excess of Loss Program (XOL): • Program consists of two towers: – 3-year term placed in 2022: $200 million excess $50 million – 1-year term placed in 2024: $190 million excess $50 million – Co-participation: o Layer 1: 15% o Layer 2: 5% • Updated 2024 purchase limit reflects exposure changes, inclusive of the Preferred P&C exit, and model enhancements HighlightsCatastrophe Reinsurance Program 3-Year Term Placed 1/1/22 $100M xs $150M 31.67% Placed 1-Year Term Placed 1/1/24 $90M xs $150M 63.33% Placed Laye r 2 : 5 % co -p articip atio n 3-Year Term Placed 1/1/22 $100M xs $50M 31.67% Placed 1-Year Term Placed 1/1/24 $100M xs $50M 53.33% Placed Laye r 1 : 1 5 % co -p articip atio n Retention 100% of first $50M

 
Earnings Call Presentation – 2Q 2024 16 Auto Inflation Pressures Remain Elevated Price Indices (Indexed to Q4’18) Source: U.S. Bureau of Labor Statistics Pace of increase continues to moderate 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 Q4 Q1 Q2 2019 2020 2021 2022 2023 2024 Bodywork Used Car & Truck Medical Care Core CPI 136 132 116 123

 
Earnings Call Presentation – 2Q 2024 Non-GAAP Financial Measures 17 Adjusted Consolidated Net Operating Income (Loss) is an after-tax, non-GAAP financial measure and is computed by excluding from Net Income (Loss) attributable to Kemper Corporation the after-tax impact of: (i) Change in Fair Value of Equity and Convertible Securities; (ii) Net Realized Investment Gains (Losses); (iii) Impairment Losses; (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 Income (Loss) attributable to Kemper Corporation. There were no applicable significant non-recurring items that the Company excluded from the calculation of Adjusted Consolidated Net Operating Income (Loss) for the three months ended June 30, 2024 or 2023. The Company believes that Adjusted Consolidated Net Operating Income (Loss) provides investors with a valuable measure of its ongoing performance because it reveals underlying operational performance trends that otherwise might be less apparent if the items were not excluded. Change in Fair Value of Equity and Convertible Securities, Net Realized Investment Gains (Losses) and Impairment Losses related to investments included in the Company’s results may vary significantly between periods and are generally driven by business decisions and external economic developments such as capital market conditions that impact the values of the Company’s investments, the timing of which is unrelated to the insurance underwriting process. Acquisition 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. Adjusted Consolidated Net Operating Income (Loss) Per Unrestricted Share is a non-GAAP financial measure. It is computed by dividing Adjusted Consolidated Net Operating Income (Loss) by the weighted average unrestricted shares outstanding. The most directly comparable GAAP financial measure is Net Income (Loss) attributable to Kemper Corporation per Unrestricted Share - basic. The Company believes that Adjusted Consolidated Net Operating Income (Loss) Per Unrestricted Share provides investors with a valuable measure of its ongoing performance because it reveals underlying operational performance trends that otherwise might be less apparent if the items were not excluded. Income from change in fair value of equity and convertible securities, net realized investment gains (losses), impairment gains (losses) 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.

 
Earnings Call Presentation – 2Q 2024 Non-GAAP Financial Measures 18 Return on Adjusted Shareholders’ Equity is a calculation that uses a non-GAAP financial measure. It is calculated by dividing the period’s net income attributable to Kemper Corporation by the average shareholders’ equity excluding net unrealized gains and losses on fixed maturities, the change in discount rate on future life policyholder benefits and goodwill. Return on Shareholders’ Equity is the most directly comparable GAAP measure. We use this non-GAAP measure to identify and analyze the change in performance attributable to management efforts between periods. The Company believes this 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. The “Return on Adjusted Shareholders’ Equity” metric was referred to as “Return on Tangible Shareholders’ Equity” in prior periods. Adjusted Book Value Per Share 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. The “Adjusted Book Value Per Share” metric was referred to as “Tangible Book Value Per Share” in prior periods. 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 – 2Q 2024 Non-GAAP Financial Measures 19 Three Months Ended ​​($ per share) Jun 30, 2024​ Jun 30, 2023 Net Income (Loss) attributable to Kemper Corporation Per Unrestricted Share $1.17 $(1.52) Less Net (Loss) Income Per Unrestricted Share From: Change in Fair Value of Equity and Convertible Securities (0.02) 0.03 Net Realized Investment Gains (Losses) 0.02 (0.20) Impairment Losses - (0.02) Acquisition and Disposition Related Transaction, Integration, Restructuring and Other Costs (0.08) (0.36) Debt Extinguishment, Pension Settlement and Other Charges 0.03 - Goodwill Impairment Charge - (0.71) Non-Core Operations (0.21) (0.04) Adjusted Consolidated Net Operating Income (Loss) Per Unrestricted Share $1.43 $(0.22) Adjusted Consolidated Net Operating Income (Loss) attributable to Kemper Corporation Three Months Ended ​​($ in millions) Jun 30, 2024​ Jun 30, 2023 Net Income (Loss) attributable to Kemper Corporation $75.4 $(97.1) Less Net (Loss) Income From: Change in Fair Value of Equity and Convertible Securities (1.0) 1.9 Net Realized Investment Gains (Losses) 1.2 (12.5) Impairment Losses (0.1) (0.8) Acquisition and Disposition Related Transaction, Integration, Restructuring and Other Costs (5.1) (23.3) Debt Extinguishment, Pension Settlement and Other Charges 2.1 - Goodwill Impairment Charge - (45.5) Non-Core Operations (13.4) (2.7) Adjusted Consolidated Net Operating Income (Loss) $91.7 $(14.2)

 
Earnings Call Presentation – 2Q 2024 Non-GAAP Financial Measures 20 Return on Adjusted Shareholders’ Equity Three Months Ended ​​($ in millions) Jun 30, 2024​ Jun 30, 2023 Annualized Net Income (Loss) attributable to Kemper Corporation $301.6 $(388.4) Average Shareholders’ Equity1 $2,630.5 $2,579.6 Less: Average Net Unrealized Gains and Losses on Fixed Maturities 652.2 607.3 Less: Average Change in Discount Rate on Future Life Policyholder Benefits (315.1) (174.3) Less: Average Goodwill (1,250.7) (1,275.5) Average Adjusted Shareholders’ Equity1 $1,716.9 $1,737.1 Return on Shareholders’ Equity 11.5% (15.1)% Return on Adjusted Shareholders’ Equity 17.6% (22.4)% 1 Average shareholders' equity and average adjusted shareholders’ equity for the three months ended is the simple average of the beginning and ending balances for the period. Average shareholders’ equity and average Adjusted shareholders’ equity on a year-to-date basis is the (a) the sum of the balance at the beginning of the year and the ending balance for each quarter within that year divided by (b) the number of quarters in the period presented plus one.

 
Earnings Call Presentation – 2Q 2024 Non-GAAP Financial Measures 21 Adjusted Book Value Per Share As of ​​($ and shares in millions except per share amounts) Jun 30, 2024​ Jun 30, 2023 Kemper Corporation Shareholders’ Equity $2,671.2 $2,512.2 Less: Net Unrealized Gains and Losses on Fixed Maturities 685.9 640.5 Less: Change in Discount Rate on Future Life Policyholder Benefits (358.0) (194.4) Less: Goodwill (1,250.7) (1,250.7) Adjusted Shareholders’ Equity $1,748.4 $1,707.6 Common Shares Issued and Outstanding 64.427 64.054 Book Value Per Share $41.46 $39.22 Less: Net Unrealized Gains and Losses on Fixed Maturities 10.65 10.00 Less: Change in Discount Rate on Future Life Policyholder Benefits (5.56) (3.03) Less: Goodwill (19.41) (19.53) Adjusted Book Value Per Share $27.14 $26.66

 
Earnings Call Presentation – 2Q 2024 Three Months Ended 2Q’24 1Q’24 4Q'23 3Q'23 2Q'23 Specialty P&C Insurance Combined Ratio as Reported 90.7% 94.8% 98.5% 109.9% 106.5% Current Year Catastrophe Losses and LAE Ratio (1.2) (0.5) (0.3) (0.7) (1.9) Prior Years Non-Catastrophe Losses and LAE Ratio 0.1 (0.6) - (8.8) (2.7) Prior Years Catastrophe Losses and LAE Ratio - (0.1) - 0.1 0.1 Underlying Combined Ratio 89.6% 93.6% 98.2% 100.5% 102.0% Personal Auto Insurance Combined Ratio as Reported 90.8% 95.1% 99.5% 112.6% 108.0% Current Year Catastrophe Losses and LAE Ratio (1.1) (0.5) (0.3) (0.7) (2.0) Prior Years Non-Catastrophe Losses and LAE Ratio (0.1) (1.0) 0.3 (9.9) (2.3) Prior Years Catastrophe Losses and LAE Ratio - (0.1) - 0.1 0.1 Underlying Combined Ratio 89.6% 93.5% 99.5% 102.1% 103.8% Commercial Auto Insurance Combined Ratio as Reported 90.5% 93.6% 94.9% 98.4% 99.5% Current Year Catastrophe Losses and LAE Ratio (1.4) (0.4) (0.4) (0.7) (1.4) Prior Years Non-Catastrophe Losses and LAE Ratio 0.8 0.7 (1.2) (4.2) (4.2) Prior Years Catastrophe Losses and LAE Ratio 0.1 (0.1) (0.1) 0.1 - Underlying Combined Ratio 90.0% 93.8% 93.2% 93.6% 93.9% Non-GAAP Financial Measures 22 Underlying Combined Ratio

 
v3.24.2.u1
Document and Entity Information
Aug. 05, 2024
Cover [Abstract]  
Document Type 8-K
Document Period End Date Aug. 05, 2024
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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