8-K

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): November 2, 2020

Kemper Corporation

(Exact name of registrant as specified in its charter)

Commission File Number: 001-18298

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

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

(Address of principal executive offices, including zip code)

312-661-4600

(Registrant’s telephone number, including area code)

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

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

| ☐ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | | --- | --- || ☐ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | | --- | --- || ☐ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | | --- | --- || ☐ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | | --- | --- |

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

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, par value $0.10 per share	KMPR	NYSE

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 November 2, 2020, Kemper Corporation ("Kemper" or the "Registrant") issued a press release announcing its financial results for the third quarter of 2020 and the availability of Kemper’s third quarter investor supplement and earnings call presentation on its website, kemper.com. The press release, the investor supplement and the earnings call presentation are furnished as Exhibits 99.1, 99.2 and 99.3, respectively, to this report.

Section 9. – Financial Statements and Exhibits.

Item 9.01.	Financial Statements and Exhibits.

(d) Exhibits

99.1 Registrant’s press release datedNovember 2, 2020.

99.2ThirdQuarter 2020 Investor Supplement of Kemper Corporation.

99.3ThirdQuarter 2020 Earnings Call Presentation.

SIGNATURES

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

		Kemper Corporation
Date:	November 2, 2020	/S/    JAMES J. MCKINNEY
		James J. McKinney
		Executive Vice President and Chief Financial Officer (principal financial officer)

Document

Exhibit 99.1

	Kemper Corporation<br><br>200 East Randolph Street<br><br>Suite 3300<br><br>Chicago, IL 60601<br><br>kemper.com
Press Release

Kemper Reports Strong Third Quarter 2020 Operating Results

CHICAGO, November 2, 2020 — Kemper Corporation (NYSE: KMPR) reported net income of $122.3 million, or $1.83 per diluted share, for the third quarter of 2020, compared to $129.0 million, or $1.91 per diluted share, for the third quarter of 2019. In the third quarter of 2020, net income included a $35.7 million after-tax gain, or $0.53 per diluted share, attributable to the change in fair value of equity and convertible securities.

Adjusted Consolidated Net Operating Income1 was $90.9 million, or $1.36 per diluted share, for the third quarter of 2020, compared to $130.0 million, or $1.93 per diluted share, for the third quarter of 2019.

Highlights of the quarter include:

•Diversified operations demonstrated ability to combine stable sources of cash flow with lower required capital to create a cost advantage that drives higher growth

•Specialty P&C earned premiums increased by $88 million or 11%, and policies-in-force grew ~8%

•Capital position provides significant financial flexibility; balance sheet and capital structure enhanced by senior notes offering

“We’re pleased with Kemper’s results in the third quarter, where our specialized and diversified model and disciplined execution again delivered strong performance amid a challenging environment,” said President and CEO Joseph P. Lacher, Jr. “Our ability to understand our customers’ needs is evidenced by industry-leading market share gains in our Specialty Auto business.”

“Kemper’s healthy balance sheet enables us to deliver on our promises and continue to make appropriate investments. We have a business that remains resilient and able to consistently deliver strong results. We continue to build on our sustainable competitive advantages to create substantial, long-term value for our stakeholders.”

1 Non-GAAP financial measure. All Non-GAAP financial measures are denoted with footnote 1 throughout this release. See “Use of Non-GAAP Financial Measures” for additional information.

	Three Months Ended				Nine Months Ended
(Dollars in Millions, Except Per Share Amounts) (Unaudited)	Sep 30,<br>2020		Sep 30,<br>2019		Sep 30,<br>2020		Sep 30,<br>2019
Net Income	$	122.3	$	129.0	$	312.4	$	406.4
Adjusted Consolidated Net Operating Income1	$	90.9	$	130.0	$	333.0	$	320.4
Impact of Catastrophe Losses and Related Loss Adjustment Expense (LAE) on Net Income	$	(53.0)	$	(11.6)	$	(79.9)	$	(48.2)
Diluted Net Income Per Share From:
Net Income	$	1.83	$	1.91	$	4.67	$	6.10
Adjusted Consolidated Net Operating Income1	$	1.36	$	1.93	$	4.98	$	4.81
Impact of Catastrophe Losses and Related LAE on Net Income Per Share	$	(0.80)	$	(0.17)	$	(1.20)	$	(0.73)

Capital

Total Shareholders’ Equity at the end of the quarter was $4,347.5 million, an increase of $375.2 million, or 9 percent, since year-end 2019 primarily driven by net income and an increase in accumulated other comprehensive income, partially offset by cash dividends and repurchases of common stock. Kemper ended the quarter with cash and investments at the holding company of $738.7 million, and the $400 million revolving credit agreement was undrawn.

On September 22, 2020, Kemper offered and sold $400.0 million aggregate principal of 2.400% senior notes due September 30, 2030 (“2030 Senior Notes”). The net proceeds of issuance were $395.6 million, net of discount and transaction costs for an effective yield of 2.52%. The 2030 Senior Notes are unsecured and may be redeemed in whole at any time or in part from time to time at Kemper’s option at specified redemption prices. Kemper is using the net proceeds from the issuance for general corporate purposes including taking advantage of emerging organic growth opportunities, extending and diversifying the capital ladder and bringing the company within our long-term debt-to-capital range of 17%-22%.

During the third quarter of 2020, Kemper paid dividends of $19.7 million.

On August 5, 2020, Kemper announced that its Board of Directors declared a quarterly dividend of $0.30 per share.

Kemper ended the quarter with a book value per share of $66.47, an increase of 12 percent from $59.59 at the end of 2019. Book Value Per Share Excluding Net Unrealized Gains on Fixed Maturities1 was $56.63, up 7 percent from $53.08 at the end of 2019.

Revenues

Total revenues for the third quarter of 2020 increased $109.9 million, or 8.8 percent, to $1,353.7 million, compared to the third quarter of 2019, driven by $88.0 million of higher Specialty P&C earned premiums and a $35.4 million increase attributable to the change in fair value of equity and convertible securities. Specialty P&C earned premiums increased due primarily to higher premium volume. Net investment income increased $0.4 million to $92.1 million in the third quarter of 2020 due primarily to recovery in the return from Alternative Investments and higher levels of investments in fixed income securities, partially offset by lower yields on fixed income securities and higher investment expenses. Net realized investment gains were $10.0 million in the third quarter of 2020, compared to $1.7 million in the third quarter of 2019. Other income decreased from $7.2 million to $0.9 million in the third quarter of 2020.

Segment Results

Unless otherwise noted, (i) the segment results discussed below are presented on an after-tax basis, (ii) prior-year development includes both catastrophe and non-catastrophe losses and LAE, (iii) catastrophe losses and LAE exclude the impact of prior-year development, (iv) loss ratio includes loss and LAE, and (v) all comparisons are made to the prior year quarter unless otherwise stated.

	Three Months Ended				Nine Months Ended
(Dollars in Millions) (Unaudited)	Sep 30,<br>2020		Sep 30,<br>2019		Sep 30,<br>2020		Sep 30,<br>2019
Segment Net Operating Income:
Specialty Property & Casualty Insurance	$	119.2	$	78.5	$	246.8	$	220.8
Preferred Property & Casualty Insurance	(32.7)		21.1		(13.4)		29.1
Life & Health Insurance	12.2		33.4		50.6		69.8
Total Segment Net Operating Income	98.7		133.0		284.0		319.7
Corporate and Other Net Operating Income (Loss)	(7.8)		(3.0)		49.0		0.7
Adjusted Consolidated Net Operating Income1	90.9		130.0		333.0		320.4
Net Income (Loss) From:
Change in Fair Value of Equity and Convertible Securities	35.7		7.8		(0.8)		78.8
Net Realized Gains on Sales of Investments	7.9		1.4		30.2		30.9
Impairment Losses	(0.8)		(1.5)		(15.8)		(9.6)
Acquisition Related Transaction, Integration and Other Costs	(11.4)		(4.1)		(34.2)		(9.5)
Loss from Early Extinguishment of Debt	—		(4.6)		—		(4.6)
Net Income	$	122.3	$	129.0	$	312.4	$	406.4

The Specialty Property & Casualty Insurance segment reported net operating income of $119.2 million for the third quarter of 2020, compared to $78.5 million in the third quarter of 2019. Results improved due primarily to higher premium volume and an improvement in underlying losses and LAE. The segment’s Underlying Combined Ratio1 was 85.9 percent, compared to 91.8 percent in the third quarter of 2019 reflecting favorable short-term pandemic-related frequency trends.

The Preferred Property & Casualty Insurance segment reported net operating loss of $32.7 million for the third quarter of 2020, compared to net operating income of $21.1 million in the third quarter of 2019. Results deteriorated due primarily to catastrophe losses and LAE (excluding loss and LAE reserve development) and adverse loss and LAE reserve development, partially offset by an improvement in underlying losses and LAE. The Preferred Property & Casualty Insurance segment’s Underlying Combined Ratio1 improved 4.2 percentage points to 90.7 percent in the third quarter of 2020 due primarily to lower incurred losses and LAE reflecting similar auto frequency trends experienced in our Specialty segment, as well as ongoing profit improvement actions.

The Life & Health Insurance segment reported net operating income of $12.2 million for the third quarter of 2020, compared to $33.4 million in the third quarter of 2019. Results deteriorated due primarily to an increase in COVID-related mortality, in line with country-wide trends.

Unaudited condensed consolidated statements of income for the three and nine months ended September 30, 2020 and 2019 are presented below.

	Three Months Ended				Nine Months Ended
(Dollars in Millions, Except Per Share Amounts)	Sep 30,<br>2020		Sep 30,<br>2019		Sep 30,<br>2020		Sep 30,<br>2019
Revenues:
Earned Premiums	$	1,206.5	$	1,135.2	$	3,458.2	$	3,326.6
Net Investment Income	92.1		91.7		245.5		270.4
Other Income	0.9		7.2		92.7		31.8
Income (Loss) from Change in Fair Value of Equity and Convertible Securities	45.2		9.8		(1.0)		99.7
Net Realized Gains on Sales of Investments	10.0		1.7		38.2		39.1
Impairment Losses	(1.0)		(1.8)		(20.0)		(12.1)
Total Revenues	1,353.7		1,243.8		3,813.6		3,755.5
Expenses:
Policyholders’ Benefits and Incurred Losses and Loss Adjustment Expenses	877.5		782.6		2,460.2		2,373.4
Insurance Expenses	276.9		256.0		821.2		754.3
Loss from Early Extinguishment of Debt	—		5.8		—		5.8
Interest and Other Expenses	47.2		37.9		142.7		117.3
Total Expenses	1,201.6		1,082.3		3,424.1		3,250.8
Income from before Income Taxes	152.1		161.5		389.5		504.7
Income Tax Expense	(29.8)		(32.5)		(77.1)		(98.3)
Net Income	$	122.3	$	129.0	$	312.4	$	406.4
Net Income Per Unrestricted Share:
Basic	$	1.87	$	1.93	$	4.75	$	6.17
Diluted	$	1.83	$	1.91	$	4.67	$	6.10
Weighted-average Outstanding (Shares in Thousands):
Unrestricted Shares - Basic	65,362.5		66,622.4		65,710.8		65,621.8
Unrestricted Shares and Equivalent Shares - Diluted	66,633.5		67,207.7		66,797.4		66,341.2
Dividends Paid to Shareholders Per Share	$	0.30	$	0.25	$	0.90	$	0.75

Unaudited business segment revenues for the three and nine months ended September 30, 2020 and 2019 are presented below.

	Three Months Ended				Nine Months Ended
(Dollars in Millions)	Sep 30,<br>2020		Sep 30,<br>2019		Sep 30,<br>2020		Sep 30,<br>2019
REVENUES:
Specialty Property & Casualty Insurance:
Earned Premiums:
Specialty Automobile	$	792.2	$	719.2	$	2,235.2	$	2,092.5
Commercial Automobile	79.2		64.2		217.7		186.2
Total Earned Premiums	871.4		783.4		2,452.9		2,278.7
Net Investment Income	30.5		28.8		76.2		79.2
Other Income	0.4		4.4		1.4		6.2
Total Specialty Property & Casualty Insurance Revenues	902.3		816.6		2,530.5		2,364.1
Preferred Property & Casualty Insurance:
Earned Premiums:
Preferred Automobile	110.6		119.7		324.6		353.0
Homeowners	55.0		61.5		167.4		182.6
Other Personal	8.9		9.8		27.0		29.5
Total Earned Premiums	174.5		191.0		519.0		565.1
Net Investment Income	10.3		12.0		24.3		32.6
Other Income	—		—		0.1		—
Total Preferred Property & Casualty Insurance Revenues	184.8		203.0		543.4		597.7
Life & Health Insurance:
Earned Premiums:
Life	96.3		96.2		289.2		289.0
Accident & Health	48.9		47.6		149.1		142.4
Property	15.4		17.0		48.0		51.4
Total Earned Premiums	160.6		160.8		486.3		482.8
Net Investment Income	50.7		49.7		146.0		154.4
Other Income	—		2.9		0.6		5.6
Total Life & Health Insurance Revenues	211.3		213.4		632.9		642.8
Total Segment Revenues	1,298.4		1,233.0		3,706.8		3,604.6
Income (Loss) from Change in Fair Value of Equity and Convertible Securities	45.2		9.8		(1.0)		99.7
Net Realized Gains on Sales of Investments	10.0		1.7		38.2		39.1
Impairment Losses	(1.0)		(1.8)		(20.0)		(12.1)
Other	1.1		1.1		89.6		24.2
Total Revenues	$	1,353.7	$	1,243.8	$	3,813.6	$	3,755.5

KEMPER CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(Dollars in Millions)

(Unaudited)

	Sep 30,<br>2020		Dec 31,<br>2019
Assets:
Investments:
Fixed Maturities at Fair Value	$	7,504.8	$	6,922.1
Equity Securities at Fair Value	788.2		907.3
Equity Securities at Modified Cost	48.4		41.9
Equity Method Limited Liability Investments at Cost Plus Cumulative Undistributed Earnings	206.2		220.4
Convertible Securities at Fair Value	36.3		37.3
Short-term Investments at Cost which Approximates Fair Value	628.8		470.9
Other Investments	762.8		661.5
Total Investments	9,975.5		9,261.4
Cash	352.2		136.8
Receivables from Policyholders	1,249.3		1,117.1
Other Receivables	214.0		219.7
Deferred Policy Acquisition Costs	578.2		537.7
Goodwill	1,114.0		1,114.0
Current Income Tax Assets	33.1		44.7
Other Assets	574.1		557.7
Total Assets	$	14,090.4	$	12,989.1
Liabilities and Shareholders’ Equity:
Insurance Reserves:
Life & Health	$	3,511.5	$	3,502.0
Property & Casualty	1,950.0		1,969.8
Total Insurance Reserves	5,461.5		5,471.8
Unearned Premiums	1,681.6		1,545.5
Policyholder Contract Liabilities	503.7		309.8
Deferred Income Tax Liabilities	245.5		178.2
Accrued Expenses and Other Liabilities	677.6		733.1
Debt at Amortized Cost	1,173.0		778.4
Total Liabilities	9,742.9		9,016.8
Shareholders’ Equity:
Common Stock	6.5		6.7
Paid-in Capital	1,798.5		1,819.2
Retained Earnings	1,993.5		1,810.3
Accumulated Other Comprehensive Income	549.0		336.1
Total Shareholders’ Equity	4,347.5		3,972.3
Total Liabilities and Shareholders’ Equity	$	14,090.4	$	12,989.1

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

	Three Months Ended						Nine Months Ended
(Dollars in Millions)	Sep 30,<br>2020			Sep 30,<br>2019			Sep 30,<br>2020			Sep 30,<br>2019
Results of Operations
Net Premiums Written	$	914.2		$	815.0		$	2,606.3		$	2,428.8
Earned Premiums	$	871.4		$	783.4		$	2,452.9		$	2,278.7
Net Investment Income	30.5			28.8			76.2			79.2
Other Income	0.4			4.4			1.4			6.2
Total Revenues	902.3			816.6			2,530.5			2,364.1
Incurred Losses and LAE related to:
Current Year:
Non-catastrophe Losses and LAE	589.0			579.4			1,724.6			1,702.9
Catastrophe Losses and LAE	2.1			2.3			6.8			7.3
Prior Years:
Non-catastrophe Losses and LAE	1.9			(4.1)			16.8			(31.0)
Catastrophe Losses and LAE	(0.1)			0.2			0.1			0.3
Total Incurred Losses and LAE	592.9			577.8			1,748.3			1,679.5
Insurance Expenses	159.5			139.2			472.8			404.9
Other Expenses	—			1.0			—			2.3
Operating Income	149.9			98.6			309.4			277.4
Income Tax Benefit	(30.7)			(20.1)			(62.6)			(56.6)
Segment Net Operating Income	$	119.2		$	78.5		$	246.8		$	220.8
Ratios Based On Earned Premiums
Current Year Non-catastrophe Losses and LAE Ratio	67.6		%	74.0		%	70.3		%	74.8		%
Current Year Catastrophe Losses and LAE Ratio	0.2			0.3			0.3			0.3
Prior Years Non-catastrophe Losses and LAE Ratio	0.2			(0.5)			0.7			(1.4)
Prior Years Catastrophe Losses and LAE Ratio	—			—			—			—
Total Incurred Loss and LAE Ratio	68.0			73.8			71.3			73.7
Insurance Expense Ratio	18.3			17.8			19.3			17.8
Combined Ratio	86.3		%	91.6		%	90.6		%	91.5		%
Underlying Combined Ratio1
Current Year Non-catastrophe Losses and LAE Ratio	67.6		%	74.0		%	70.3		%	74.8		%
Insurance Expense Ratio	18.3			17.8			19.3			17.8
Underlying Combined Ratio1	85.9		%	91.8		%	89.6		%	92.6		%
Non-GAAP Measure Reconciliation
Combined Ratio	86.3		%	91.6		%	90.6		%	91.5		%
Less:
Current Year Catastrophe Losses and LAE Ratio	0.2			0.3			0.3			0.3
Prior Years Non-catastrophe Losses and LAE Ratio	0.2			(0.5)			0.7			(1.4)
Prior Years Catastrophe Losses and LAE Ratio	—			—			—			—
Underlying Combined Ratio1	85.9		%	91.8		%	89.6		%	92.6		%

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

	Three Months Ended						Nine Months Ended
(Dollars in Millions)	Sep 30,<br>2020			Sep 30,<br>2019			Sep 30,<br>2020			Sep 30,<br>2019
Results of Operations
Net Premiums Written	$	172.2		$	189.6		$	497.8		$	566.7
Earned Premiums	$	174.5		$	191.0		$	519.0		$	565.1
Net Investment Income	10.3			12.0			24.3			32.6
Other Income	—			—			0.1			—
Total Revenues	184.8			203.0			543.4			597.7
Incurred Losses and LAE related to:
Current Year:
Non-catastrophe Losses and LAE	102.8			121.7			293.8			361.6
Catastrophe Losses and LAE	61.9			11.9			87.3			51.1
Prior Years:
Non-catastrophe Losses and LAE	6.3			(1.1)			11.2			(10.5)
Catastrophe Losses and LAE	0.1			(15.4)			(0.6)			(15.3)
Total Incurred Losses and LAE	171.1			117.1			391.7			386.9
Insurance Expenses	55.5			59.4			169.7			174.6
Operating Income (Loss)	(41.8)			26.5			(18.0)			36.2
Income Tax Benefit (Expense)	9.1			(5.4)			4.6			(7.1)
Segment Net Operating Income (Loss)	$	(32.7)		$	21.1		$	(13.4)		$	29.1
Ratios Based On Earned Premiums
Current Year Non-catastrophe Losses and LAE Ratio	58.9		%	63.8		%	56.6		%	64.1		%
Current Year Catastrophe Losses and LAE Ratio	35.5			6.2			16.8			9.0
Prior Years Non-catastrophe Losses and LAE Ratio	3.6			(0.6)			2.2			(1.9)
Prior Years Catastrophe Losses and LAE Ratio	0.1			(8.1)			(0.1)			(2.7)
Total Incurred Loss and LAE Ratio	98.1			61.3			75.5			68.5
Insurance Expense Ratio	31.8			31.1			32.7			30.9
Combined Ratio	129.9		%	92.4		%	108.2		%	99.4		%
Underlying Combined Ratio1
Current Year Non-catastrophe Losses and LAE Ratio	58.9		%	63.8		%	56.6		%	64.1		%
Insurance Expense Ratio	31.8			31.1			32.7			30.9
Impact on Ratio from Write-off of Long-lived Asset	—			—			—			—
Underlying Combined Ratio1	90.7		%	94.9		%	89.3		%	95.0		%
Non-GAAP Measure Reconciliation
Combined Ratio	129.9		%	92.4		%	108.2		%	99.4		%
Less:
Current Year Catastrophe Losses and LAE Ratio	35.5			6.2			16.8			9.0
Prior Years Non-catastrophe Losses and LAE Ratio	3.6			(0.6)			2.2			(1.9)
Prior Years Catastrophe Losses and LAE Ratio	0.1			(8.1)			(0.1)			(2.7)
Underlying Combined Ratio1	90.7		%	94.9		%	89.3		%	95.0		%

Unaudited selected financial information for the Life & Health Insurance segment follows.

	Three Months Ended				Nine Months Ended
(Dollars in Millions)	Sep 30,<br>2020		Sep 30,<br>2019		Sep 30,<br>2020		Sep 30,<br>2019
Results of Operations
Earned Premiums	$	160.6	$	160.8	$	486.3	$	482.8
Net Investment Income	50.7		49.7		146.0		154.4
Other Income	—		2.9		0.6		5.6
Total Revenues	211.3		213.4		632.9		642.8
Policyholders’ Benefits and Incurred Losses and LAE	113.6		88.8		320.2		307.7
Insurance Expenses	82.5		83.6		251.1		248.7
Operating Profit	15.2		41.0		61.6		86.4
Income Tax Expense	(3.0)		(7.6)		(11.0)		(16.6)
Segment Net Operating Income	$	12.2	$	33.4	$	50.6	$	69.8

Use of Non-GAAP Financial Measures

Adjusted Consolidated Net Operating Income1

Adjusted Consolidated Net Operating Income1 is an after-tax, non-GAAP financial measure computed by excluding from Net Income the after-tax impact of 1) income (loss) from change in fair value of equity and convertible securities, 2) net realized gains on sales of investments, 3) impairment losses 4) acquisition related transaction, integration and other costs, 5) loss from early extinguishment of debt and 6) 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.

Kemper believes that Adjusted Consolidated Net Operating Income1 provides investors with a valuable measure of its ongoing performance because it reveals underlying operational performance trends that otherwise might be less apparent if the items were not excluded. Income (Loss) from change in fair value of equity and convertible securities, net realized gains on sales of investments and impairment losses related to investments included in the Company’s results may vary significantly between periods and are generally driven by business decisions and external economic developments such as capital market conditions that impact the values of the Company’s investments, the timing of which is unrelated to the insurance underwriting process. Loss from early extinguishment of debt 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. Acquisition related transaction, integration 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. Significant non-recurring items are excluded because, by their nature, they are not indicative of the Company’s business or economic trends.

A reconciliation of Net Income to Adjusted Consolidated Net Operating Income1 for the three and nine months ended September 30, 2020 and 2019 is presented below.

	Three Months Ended				Nine Months Ended
(Dollars in Millions) (Unaudited)	Sep 30,<br>2020		Sep 30,<br>2019		Sep 30,<br>2020		Sep 30,<br>2019
Net Income	$	122.3	$	129.0	$	312.4	$	406.4
Less Net Income (Loss) From:
Change in Fair Value of Equity and Convertible Securities	35.7		7.8		(0.8)		78.8
Net Realized Gains on Sales of Investments	7.9		1.4		30.2		30.9
Impairment Losses	(0.8)		(1.5)		(15.8)		(9.6)
Acquisition Related Transaction, Integration and Other Costs	(11.4)		(4.1)		(34.2)		(9.5)
Loss from Early Extinguishment of Debt	—		(4.6)		—		(4.6)
Adjusted Consolidated Net Operating Income1	$	90.9	$	130.0	$	333.0	$	320.4

Diluted Adjusted Consolidated Net Operating Income Per Unrestricted Share1

Diluted Adjusted Consolidated Net Operating Income Per Unrestricted Share1 is a non-GAAP financial measure computed by dividing Adjusted Consolidated Net Operating Income1 attributed to unrestricted shares by the weighted-average unrestricted shares and equivalent shares outstanding. The most directly comparable GAAP financial measure is Diluted Net Income.

A reconciliation of Diluted Net Income to Diluted Adjusted Consolidated Net Operating Income Per Unrestricted Share1 for the three and nine months ended September 30, 2020 and 2019 is presented below.

	Three Months Ended				Nine Months Ended
(Unaudited)	Sep 30,<br>2020		Sep 30,<br>2019		Sep 30,<br>2020		Sep 30,<br>2019
Diluted Net Income	$	1.83	$	1.91	$	4.67	$	6.10
Less Net Income (Loss) Per Unrestricted Share From:
Change in Fair Value of Equity and Convertible Securities	0.53		0.11		(0.01)		1.18
Net Realized Gains on Sales of Investments	0.12		0.02		0.45		0.46
Impairment Losses	(0.01)		(0.02)		(0.24)		(0.14)
Acquisition Related Transaction, Integration and Other Costs	(0.17)		(0.06)		(0.51)		(0.14)
Loss from Early Extinguishment of Debt	—		(0.07)		—		(0.07)
Diluted Adjusted Consolidated Net Operating Income Per Unrestricted Share1	$	1.36	$	1.93	$	4.98	$	4.81

Book Value Per Share Excluding Net Unrealized Gains on Fixed Maturities1

Book Value Per Share Excluding Net Unrealized Gains on Fixed Maturities1 is a ratio that uses a non-GAAP financial measure. It is calculated by dividing shareholders’ equity after excluding the after-tax impact of net unrealized gains on fixed income securities by total Common Shares Issued and Outstanding. Book Value Per Share is the most directly comparable GAAP financial measure. Kemper uses the trends in book value per share, excluding the after-tax impact of net unrealized gains on fixed income securities, in conjunction with book value per share to identify and analyze the change in net worth attributable to management efforts between periods. Kemper believes the non-GAAP financial measure is useful to investors because it eliminates the effect of items that can fluctuate significantly from period to period and are generally driven by economic developments, primarily capital market conditions, the magnitude and timing of which are not influenced by management. Kemper believes it enhances understanding and comparability of performance by highlighting underlying business activity and profitability drivers.

A reconciliation of the numerator used in the computation of Book Value Per Share Excluding Net Unrealized Gains on Fixed Maturities1 and Book Value Per Share at September 30, 2020 and December 31, 2019 is presented below.

(Dollars in Millions) (Unaudited)	Sep 30,<br>2020		Dec 31,<br>2019
Shareholders’ Equity	$	4,347.5	$	3,972.3
Net Unrealized Gains on Fixed Maturities	643.7		434.0
Shareholders’ Equity Excluding Net Unrealized Gains on Fixed Maturities1	$	3,703.8	$	3,538.3

Underlying Combined Ratio1

Underlying Combined Ratio1 is a non-GAAP financial measure that is computed by adding the current year non-catastrophe losses and LAE ratio with the insurance expense ratio. The most directly comparable GAAP financial measure is the combined ratio, which is computed by adding total incurred losses and LAE, including the impact of catastrophe losses and loss and LAE reserve development from prior years, with the insurance expense ratio. Kemper believes the Underlying Combined Ratio is useful to investors and is used by management to reveal the trends in Kemper’s property and casualty insurance businesses that may be obscured by catastrophe losses and prior-year reserve development. These catastrophe losses may cause loss trends to vary significantly between periods as a result of their incidence of occurrence and magnitude, and can have a significant impact on incurred losses and LAE and the combined ratio. Prior-year reserve development is 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. Kemper believes it is useful for investors to evaluate these components separately and in the aggregate when reviewing its underwriting performance. The Underlying Combined Ratio1 should not be considered a substitute for the combined ratio and does not reflect the overall underwriting profitability of our business.

Conference Call

Kemper will discuss its third quarter 2020 results in a conference call on Monday, November 2nd, at 5:00 p.m. Eastern (4:00 p.m. Central) Time. Kemper’s conference call will be accessible via the internet and by telephone. The phone number for Kemper’s conference call is 844.826.3041. To listen via webcast, register online at the investor section of kemper.com at least 15 minutes prior to the webcast to download and install any necessary software.

A replay of the call will be available online at the investor section of kemper.com.

More detailed financial information can be found in Kemper’s Investor Financial Supplement and Earnings Call Presentation for the third quarter of 2020, which is available at the investor section of kemper.com.

About Kemper

The Kemper family of companies is one of the nation’s leading specialized insurers. With $14.1 billion in assets, Kemper is improving the world of insurance by providing affordable and easy-to-use personalized solutions to individuals, families and businesses through its Auto, Personal Insurance, Life and Health brands. Kemper serves over 6.3 million policies, is represented by more than 30,000 agents and brokers, and has over 9,300 associates dedicated to meeting the ever-changing needs of its customers.

Learn more about Kemper.

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. Forward-looking statements give expectations or forecasts of future events and can be identified by the fact that they relate to future actions, performance or results rather than strictly to historical or current facts.

Any or all forward-looking statements may turn out to be wrong, and, accordingly, readers are cautioned not to place undue reliance on such statements, which speak only as of the date of this press release. Forward-looking statements involve a number of risks and uncertainties that are difficult to predict and are not guarantees of future performance. Among the general factors that could cause actual results and financial condition to differ materially from estimated results and financial condition are those factors listed in periodic reports filed by Kemper with the Securities and Exchange Commission (“SEC”). The COVID-19 outbreak and subsequent global pandemic (“Pandemic”) is an extraordinary event that creates unique uncertainties and risks. Kemper cannot provide any assurances as to the impacts of the Pandemic and related economic conditions on the Company’s operating and financial results.

No assurances can be given that the results and financial condition contemplated in any forward-looking statements will be achieved or will be achieved in any particular timetable. Kemper assumes no obligation to publicly correct or update any forward-looking statements as a result of events or developments subsequent to the date of this press release, including any such statements related to the Pandemic. The reader is advised, however, to consult any further disclosures Kemper makes on related subjects in its filings with the SEC.

Contacts
Investors: Christine Patrick	312.661.4803 or cpatrick@kemper.com
Media: Barbara Ciesemier	312.661.4521 or bciesemier@kemper.com

12

Document

Exhibit 99.2

Investor Supplement

Third Quarter 2020

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

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 Page 33.

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. Forward-looking statements give expectations or forecasts of future events and can be identified by the fact that they relate to future actions, performance or results rather than strictly to historical or current facts.

Any or all forward-looking statements may turn out to be wrong, and, accordingly, readers are cautioned not to place undue reliance on such statements, which speak only as of the date this Investor Supplement was included as an exhibit to the Company's Current Report on Form 8-K. Forward-looking statements involve a number of risks and uncertainties that are difficult to predict and are not guarantees of future performance. Among the general factors that could cause actual results and financial condition to differ materially from estimated results and financial condition are those factors listed in periodic reports filed by Kemper Corporation with the SEC. The COVID-19 outbreak and subsequent global pandemic (“Pandemic”) is an extraordinary event that creates unique uncertainties and risks. Kemper cannot provide any assurances as to the impacts of the Pandemic and related economic conditions on the Company’s operating and financial results.

No assurances can be given that the results and financial condition contemplated in any forward-looking statements will be achieved or will be achieved in any particular timetable. Kemper assumes no obligation to publicly correct or update any forward-looking statements as a result of events or developments subsequent to the date of this Investor Supplement, including any such statements related to the Pandemic. The reader is advised, however, to consult any further disclosures Kemper makes on related subjects in its filings with the SEC.

Kemper Corporation

Investor Supplement

Third Quarter 2020

Table of Contents

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

Kemper Corporation

Consolidated Financial Highlights

(Dollars in Millions, Except Per Share Amounts)

(Unaudited)

	Three Months Ended																					Nine Months Ended
	Sep 30,<br>2020			Jun 30,<br>2020			Mar 31,<br>2020			Dec 31,<br>2019			Sep 30,<br>2019			Jun 30,<br>2019			Mar 31,<br>2019			Sep 30,<br>2020		Sep 30,<br>2019
For Period Ended
Earned Premiums	$	1,206.5		$	1,085.3		$	1,166.4		$	1,145.8		$	1,135.2		$	1,116.6		$	1,074.8		$	3,458.2	$	3,326.6
Net Investment Income	92.1			67.8			85.6			93.9			91.7			96.0			82.7			245.5		270.4
Other Income	0.9			1.5			90.3			3.7			7.2			22.7			1.9			92.7		31.8
Income (Loss) from Change in Fair Value of Equity and Convertible Securities	45.2			71.6			(117.8)			39.2			9.8			25.5			64.4			(1.0)		99.7
Net Investment Gains (Loss)	9.0			4.7			4.5			1.1			(0.1)			14.6			12.5			18.2		27.0
Total Revenues	$	1,353.7		$	1,230.9		$	1,229.0		$	1,283.7		$	1,243.8		$	1,275.4		$	1,236.3		$	3,813.6	$	3,755.5
Net Income	$	122.3		$	126.1		$	64.0		$	124.7		$	129.0		$	122.1		$	155.3		$	312.4	$	406.4
Adjusted Consolidated Net Operating Income 1	$	90.9		$	79.2		$	162.9		$	97.9		$	130.0		$	91.5		$	98.9		$	333.0	$	320.4
Per Unrestricted Common Share Amounts:
Basic:
Net Income	$	1.87		$	1.93		$	0.96		$	1.87		$	1.93		$	1.87		$	2.38		$	4.75	$	6.17
Adjusted Consolidated Net Operating Income 1	$	1.39		$	1.21		$	2.45		$	1.46		$	1.95		$	1.39		$	1.52		$	5.06	$	4.86
Diluted:
Net Income	$	1.83		$	1.91		$	0.95		$	1.85		$	1.91		$	1.84		$	2.35		$	4.67	$	6.10
Adjusted Consolidated Net Operating Income 1	$	1.36		$	1.20		$	2.43		$	1.45		$	1.93		$	1.38		$	1.50		$	4.98	$	4.81
Dividends Paid to Shareholders Per Share	$	0.30		$	0.30		$	0.30		$	0.28		$	0.25		$	0.25		$	0.25		$	0.90	$	0.75
At Period End
Total Assets	$	14,090.4		$	13,489.4		$	12,932.3		$	12,989.1		$	12,819.9		$	12,616.5		$	12,182.2
Insurance Reserves	$	5,461.5		$	5,375.0		$	5,442.4		$	5,471.8		$	5,441.3		$	5,426.1		$	5,370.4
Debt	$	1,173.0		$	777.7		$	778.1		$	778.4		$	778.7		$	873.3		$	908.5
Shareholders’ Equity	$	4,347.5		$	4,187.9		$	3,760.8		$	3,972.3		$	3,894.2		$	3,683.7		$	3,320.1
Shareholders’ Equity Excluding Goodwill1,2	$	3,233.5		$	3,073.9		$	2,646.8		$	2,858.3		$	2,780.2		$	2,569.7		$	2,208.6
Common Shares Issued and Outstanding (In Millions)	65.406			65.282			65.365			66.666			66.642			66.564			64.931
Book Value Per Share2	$	66.47		$	64.15		$	57.54		$	59.59		$	58.43		$	55.34		$	51.13
Book Value Per Share Excluding Goodwill1,2	$	49.44		$	47.09		$	40.49		$	42.87		$	41.72		$	38.60		$	34.01
Book Value Per Share Excluding Net Unrealized Gains on Fixed Maturities1,2	$	56.63		$	55.13		$	53.53		$	53.08		$	51.51		$	49.82		$	47.41
Book Value Per Share Excluding Net Unrealized Gains on Fixed Maturities and Goodwill1,2	$	39.60		$	38.07		$	36.49		$	36.36		$	34.80		$	33.08		$	30.29
Debt to Total Capitalization2	21.2		%	15.7		%	17.1		%	16.4		%	16.7		%	19.2		%	21.5		%
Rolling 12 Months Return on 5-point Average Shareholders Equity2,3	10.8		%	11.4		%	11.8		%	14.8		%	12.1		%	12.4		%	10.8		%
1 Non-GAAP Financial Measure. See page 33 for definition.
2 See Capital Metrics on pages 8-9 for detail calculations.
3 Rolling 12 Months Return on 5-point Average Shareholders Equity is calculated by taking the last 12 months of Net Income (Loss) divided by the 5-point average Shareholders’ Equity. The 5-point Average Shareholders’ Equity is calculated by using a 5-point quarter average of Shareholders’ Equity for the 12 month period.

Kemper Corporation

Consolidated Statements of Income

(Dollars in Millions, Except Per Share Amounts)

(Unaudited)

	Three Months Ended														Nine Months Ended
	Sep 30,<br>2020		Jun 30,<br>2020		Mar 31,<br>2020		Dec 31,<br>2019		Sep 30,<br>2019		Jun 30,<br>2019		Mar 31,<br>2019		Sep 30,<br>2020		Sep 30,<br>2019
Revenues:
Earned Premiums	$	1,206.5	$	1,085.3	$	1,166.4	$	1,145.8	$	1,135.2	$	1,116.6	$	1,074.8	$	3,458.2	$	3,326.6
Net Investment Income	92.1		67.8		85.6		93.9		91.7		96.0		82.7		245.5		270.4
Other Income	0.9		1.5		90.3		3.7		7.2		22.7		1.9		92.7		31.8
Income (Loss) from Change in Fair Value of Equity and Convertible Securities	45.2		71.6		(117.8)		39.2		9.8		25.5		64.4		(1.0)		99.7
Net Realized Gains on Sales of Investments	10.0		11.7		16.5		2.8		1.7		21.3		16.1		38.2		39.1
Impairment Losses	(1.0)		(7.0)		(12.0)		(1.7)		(1.8)		(6.7)		(3.6)		(20.0)		(12.1)
Total Revenues	1,353.7		1,230.9		1,229.0		1,283.7		1,243.8		1,275.4		1,236.3		3,813.6		3,755.5
Expenses:
Policyholders’ Benefits and Incurred Losses and Loss Adjustment Expenses	877.5		747.5		835.2		814.9		782.6		825.4		765.4		2,460.2		2,373.4
Insurance Expenses	276.9		272.7		271.6		265.4		256.0		263.5		234.8		821.2		754.3
Loss from Early Extinguishment of Debt	—		—		—		—		5.8		—		—		—		5.8
Interest and Other Expenses	47.2		51.0		44.5		46.5		37.9		38.0		41.4		142.7		117.3
Total Expenses	1,201.6		1,071.2		1,151.3		1,126.8		1,082.3		1,126.9		1,041.6		3,424.1		3,250.8
Income before Income Taxes	152.1		159.7		77.7		156.9		161.5		148.5		194.7		389.5		504.7
Income Tax Expense	(29.8)		(33.6)		(13.7)		(32.2)		(32.5)		(26.4)		(39.4)		(77.1)		(98.3)
Net Income	$	122.3	$	126.1	$	64.0	$	124.7	$	129.0	$	122.1	$	155.3	$	312.4	$	406.4
Income Per Unrestricted Share:
Basic	$	1.87	$	1.93	$	0.96	$	1.87	$	1.93	$	1.87	$	2.38	$	4.75	$	6.17
Diluted	$	1.83	$	1.91	$	0.95	$	1.85	$	1.91	$	1.84	$	2.35	$	4.67	$	6.10
Net Income Per Unrestricted Share:
Basic	$	1.87	$	1.93	$	0.96	$	1.87	$	1.93	$	1.87	$	2.38	$	4.75	$	6.17
Diluted	$	1.83	$	1.91	$	0.95	$	1.85	$	1.91	$	1.84	$	2.35	$	4.67	$	6.10
Dividends Paid to Shareholders Per Share	$	0.30	$	0.30	$	0.30	$	0.28	$	0.25	$	0.25	$	0.25	$	0.90	$	0.75
Weighted Average Unrestricted Common Shares Outstanding (in Millions)	65.363		65.258		66.516		66.650		66.622		65.408		64.815		65.711		65.622

Kemper Corporation

Consolidated Balance Sheets

(Dollars in Millions)

(Unaudited)

	Sep 30,<br>2020		Jun 30,<br>2020		Mar 31,<br>2020		Dec 31,<br>2019		Sep 30,<br>2019		Jun 30,<br>2019		Mar 31,<br>2019
Assets:
Investments:
Fixed Maturities at Fair Value	$	7,504.8	$	7,480.4	$	6,998.5	$	6,922.1	$	6,883.6	$	6,540.2	$	6,573.1
Equity Securities at Fair Value	788.2		783.3		709.8		907.3		928.7		923.3		916.9
Equity Securities at Modified Cost	48.4		48.1		44.8		41.9		41.2		38.1		39.2
Equity Method Limited Liability Investments at Cost Plus Cumulative Undistributed Earnings	206.2		209.9		226.3		220.4		213.4		219.7		197.8
Convertible Securities at Fair Value	36.3		35.0		32.8		37.3		35.6		34.3		33.8
Short-term Investments at Cost which Approximates Fair Value	628.8		154.2		166.7		470.9		424.2		642.5		350.4
Other Investments	762.8		757.5		760.2		661.5		561.6		554.3		485.9
Total Investments	9,975.5		9,468.4		8,939.1		9,261.4		9,088.3		8,952.4		8,597.1
Cash	352.2		389.3		301.3		136.8		133.6		104.4		107.0
Receivables from Policyholders	1,249.3		1,165.3		1,219.1		1,117.1		1,139.8		1,095.2		1,048.6
Other Receivables	214.0		207.1		207.8		219.7		217.1		248.1		254.6
Deferred Policy Acquisition Costs	578.2		560.8		551.5		537.7		536.5		521.0		499.2
Goodwill	1,114.0		1,114.0		1,114.0		1,114.0		1,114.0		1,114.0		1,111.5
Current Income Tax Assets	33.1		3.5		17.8		44.7		44.1		41.0		19.7
Other Assets	574.1		581.0		581.7		557.7		546.5		540.4		544.5
Total Assets	$	14,090.4	$	13,489.4	$	12,932.3	$	12,989.1	$	12,819.9	$	12,616.5	$	12,182.2
Liabilities and Shareholders’ Equity:
Insurance Reserves:
Life and Health	$	3,511.5	$	3,497.7	$	3,500.8	$	3,502.0	$	3,499.7	$	3,514.2	$	3,501.7
Property and Casualty	1,950.0		1,877.3		1,941.6		1,969.8		1,941.6		1,911.9		1,868.7
Total Insurance Reserves	5,461.5		5,375.0		5,442.4		5,471.8		5,441.3		5,426.1		5,370.4
Unearned Premiums	1,681.6		1,642.6		1,621.4		1,545.5		1,574.9		1,545.6		1,499.5
Policyholder Contract Liabilities	503.7		520.3		430.5		309.8		204.1		221.8		254.5
Deferred Income Tax Liabilities	245.5		226.8		116.0		178.2		175.3		124.1		82.6
Liability for Unrecognized Tax Benefits	—		—		—		—		—		—		3.9
Accrued Expenses and Other Liabilities	677.6		759.1		783.1		733.1		751.4		741.9		742.7
Long-term Debt, Current and Non-current, at Amortized Cost	1,173.0		777.7		778.1		778.4		778.7		873.3		908.5
Total Liabilities	9,742.9		9,301.5		9,171.5		9,016.8		8,925.7		8,932.8		8,862.1
Shareholders’ Equity:
Common Stock	6.5		6.5		6.5		6.7		6.7		6.7		6.5
Paid-in Capital	1,798.5		1,792.5		1,788.2		1,819.2		1,812.9		1,806.4		1,673.0
Retained Earnings	1,993.5		1,891.6		1,791.2		1,810.3		1,704.5		1,593.7		1,489.7
Accumulated Other Comprehensive Income	549.0		497.3		174.9		336.1		370.1		276.9		150.9
Total Shareholders’ Equity	4,347.5		4,187.9		3,760.8		3,972.3		3,894.2		3,683.7		3,320.1
Total Liabilities and Shareholders’ Equity	$	14,090.4	$	13,489.4	$	12,932.3	$	12,989.1	$	12,819.9	$	12,616.5	$	12,182.2
Kemper Corporation<br><br>Consolidated Statements of Cash Flows<br><br>(Dollars in Millions)<br><br>(Unaudited)
---	---	---	---	---
	Nine Months Ended
	Sep 30,<br>2020		Sep 30,<br>2019
Cash Flows from Operating Activities:
Net Income	$	312.4	$	406.4
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities:
Net Realized Investment Gains	(38.2)		(39.1)
Impairment Losses	20.0		12.1
Depreciation and Amortization of Property, Equipment and Software	26.6		21.7
Amortization of Intangibles Assets Acquired	14.1		24.3
Contribution to Defined Benefit Pension Plan	—		(55.3)
Loss from Early Extinguishment of Debt	—		5.8
Change in Accumulated Undistributed Earnings of Equity Method Limited Liability Investments	5.6		9.7
Decrease (Increase) in Value of Equity and Convertible Securities at Fair Value	1.0		(99.7)
Changes in:
Receivables from Policyholders	(132.2)		(132.8)
Reinsurance Recoverables	13.8		39.8
Deferred Policy Acquisition Costs	(40.5)		(66.5)
Insurance Reserves	(10.3)		71.5
Unearned Premiums	136.1		150.7
Income Taxes	22.0		46.1
Other	(79.1)		(28.2)
Net Cash Provided by Operating Activities	251.3		366.5
Kemper Corporation<br><br>Consolidated Statements of Cash Flows<br><br>(Dollars in Millions)<br><br>(Unaudited)
---	---	---	---	---
	Nine Months Ended
Net Cash Provided by Operating Activities (Carryforward from page 6)	251.3		366.5
Cash Flows from Investing Activities:
Proceeds from Sales, Calls, and Maturities of Fixed Maturities	707.0		1,067.9
Proceeds from the Sales of Investments:
Equity Securities	436.5		99.7
Real Estate Investments	5.4		—
Mortgage Loans	18.6		—
Other Investments	26.5		25.7
Purchases of Investments:
Fixed Maturities	(1,009.7)		(1,013.7)
Equity Securities	(324.4)		(248.2)
Real Estate Investments	(0.5)		(1.2)
Corporate-owned Life Insurance	(100.0)		(50.0)
Mortgage Loans	(22.7)		—
Other Investments	(17.9)		(94.1)
Net Purchases of Short-term Investments	(147.9)		(111.5)
Acquisition of Software and Long-lived Assets	(46.2)		(53.8)
Other	6.0		(2.0)
Net Cash Provided (Used In) by Investing Activities	(469.3)		(381.2)
Cash Flows from Financing Activities:
Net Proceeds from Issuance of Long-term Debt	395.6		49.9
Repayment of Long-term Debt	—		(185.0)
Proceeds from Policyholder Contract Liabilities	391.8		385.6
Repayment of Policyholder Contract Liabilities	(192.4)		(258.0)
Proceeds from Issuance of Common Stock, Net of Transaction Costs	—		127.5
Proceeds from Shares Issued under Employee Stock Purchase Plan	3.1		1.0
Common Stock Repurchases	(110.4)		—
Dividends and Dividend Equivalents Paid	(59.3)		(49.1)
Other	5.0		1.3
Net Cash Provided by Financing Activities	433.4		73.2
Increase in Cash	215.4		58.5
Cash, Beginning of Year	136.8		75.1
Cash, End of Period	$	352.2	$	133.6
Kemper Corporation<br><br>Capital Metrics<br><br>(Dollars and Shares in Millions, Except Per Share Amounts)<br><br>(Unaudited)
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
	Three Months Ended
		Sep 30,<br>2020			Jun 30,<br>2020			Mar 31,<br>2020			Dec 31,<br>2019			Sep 30,<br>2019			Jun 30,<br>2019			Mar 31,<br>2019
Book Value Per Share
Numerator
Shareholders’ Equity		$	4,347.5		$	4,187.9		$	3,760.8		$	3,972.3		$	3,894.2		$	3,683.7		$	3,320.1
Less: Goodwill		(1,114.0)			(1,114.0)			(1,114.0)			(1,114.0)			(1,114.0)			(1,114.0)			(1,111.5)
Shareholders’ Equity Excluding Goodwill1		$	3,233.5		$	3,073.9		$	2,646.8		$	2,858.3		$	2,780.2		$	2,569.7		$	2,208.6
Shareholders’ Equity		$	4,347.5		$	4,187.9		$	3,760.8		$	3,972.3		$	3,894.2		$	3,683.7		$	3,320.1
Less: Net Unrealized Gains on Fixed Maturities		(643.7)			(588.6)			(261.6)			(434.0)			(461.3)			(367.8)			(241.9)
Shareholders’ Equity Excluding Net Unrealized Gains on Fixed Maturities1		$	3,703.8		$	3,599.3		$	3,499.2		$	3,538.3		$	3,432.9		$	3,315.9		$	3,078.2
Less: Goodwill		(1,114.0)			(1,114.0)			(1,114.0)			(1,114.0)			(1,114.0)			(1,114.0)			(1,111.5)
Shareholders’ Equity Excluding Net Unrealized Gains on Fixed Maturities and Goodwill1		$	2,589.8		$	2,485.3		$	2,385.2		$	2,424.3		$	2,318.9		$	2,201.9		$	1,966.7
Denominator
Common Shares Issued and Outstanding		65.406			65.282			65.365			66.666			66.642			66.564			64.931
Book Value Per Share		$	66.47		$	64.15		$	57.54		$	59.59		$	58.43		$	55.34		$	51.13
Book Value Per Share Excluding Goodwill1		$	49.44		$	47.09		$	40.49		$	42.87		$	41.72		$	38.60		$	34.01
Book Value Per Share Excluding Net Unrealized Gains on Fixed Maturities1		$	56.63		$	55.13		$	53.53		$	53.08		$	51.51		$	49.82		$	47.41
Book Value Per Share Excluding Net Unrealized Gains on Fixed Maturities and Goodwill1		$	39.60		$	38.07		$	36.49		$	36.36		$	34.80		$	33.08		$	30.29
Return on Shareholders’ Equity
Numerator
Rolling 12 Months Net Income		$	437.1		$	443.8		$	439.8		$	531.1		$	412.9		$	376.1		$	291.6
Denominator (5-point Average)
5-point Average Shareholders’ Equity		$	4,032.5		$	3,899.8		$	3,726.2		$	3,584.1		$	3,402.4		$	3,032.7		$	2,708.7
Rolling 12 Months Return on Average Shareholders' Equity (5-point Average)		10.8		%	11.4		%	11.8		%	14.8		%	12.1		%	12.4		%	10.8		%
Return on Shareholders’ Equity Excluding Goodwill1
Denominator (5-point Average)
5-point Average Shareholders’ Equity Excluding Goodwill1		$	2,918.5		$	2,785.8		$	2,612.7		$	2,470.9		$	2,293.8		$	2,082.3		$	1,916.5
Rolling 12 Months Return on Average Shareholders' Equity Excluding Goodwill (5-point Average)1		15.0		%	15.9		%	16.8		%	21.5		%	18.0		%	18.1		%	15.2		%
Return on Shareholders’ Equity Excluding Net Unrealized Gains on Fixed Maturities1
Denominator (5-point Average)
5-point Average Shareholders’ Equity Excluding Net Unrealized Gains on Fixed Maturities1		$	3,554.7		$	3,477.1		$	3,372.9		$	3,261.0		$	3,144.6		$	2,838.0		$	2,549.5
Rolling 12 Months Return on Average Shareholders' Equity Excluding Net Unrealized Gains on Fixed Maturities (5-point Average)1		12.3		%	12.8		%	13.0		%	16.3		%	13.1		%	13.3		%	11.4		%
Return on Shareholders’ Equity Excluding Net Unrealized Gains on Fixed Maturities and Goodwill1
Denominator (5-point Average)
5-point Average Shareholders’ Equity Excluding Net Unrealized Gains on Fixed Maturities and Goodwill1		$	2,440.7		$	2,363.1		$	2,259.4		$	2,147.8		$	2,036.0		$	1,887.6		$	1,757.3
Rolling 12 Months Return on Average Shareholders' Equity Excluding Net Unrealized Gains on Fixed Maturities and Goodwill (5-point Average)1		17.9		%	18.8		%	19.5		%	24.7		%	20.3		%	19.9		%	16.6		%
1 Non-GAAP financial measure. See definitions beginning on page 33.
Kemper Corporation<br><br>Capital Metrics<br><br>(Dollars and Shares in Millions, Except Per Share Amounts)<br><br>(Unaudited)
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
	Three Months Ended
		Sep 30,<br>2020			Jun 30,<br>2020			Mar 31,<br>2020			Dec 31,<br>2019			Sep 30,<br>2019			Jun 30,<br>2019			Mar 31,<br>2019
Debt and Total Capitalization
Debt		$	1,173.0		$	777.7		$	778.1		$	778.4		$	778.7		$	873.3		$	908.5
Shareholders’ Equity		4,347.5			4,187.9			3,760.8			3,972.3			3,894.2			3,683.7			3,320.1
Total Capitalization		$	5,520.5		$	4,965.6		$	4,538.9		$	4,750.7		$	4,672.9		$	4,557.0		$	4,228.6
Ratio of Debt to Shareholders’ Equity		27.0		%	18.6		%	20.7		%	19.6		%	20.0		%	23.7		%	27.4		%
Ratio of Debt to Total Capitalization		21.2		%	15.7		%	17.1		%	16.4		%	16.7		%	19.2		%	21.5		%
Parent Company Liquidity
Kemper Holding Company Cash and Investments		$	738.7		$	270.5		$	199.1		$	206.8		$	169.1		$	312.7		$	118.6
Borrowings Available Under Credit Agreement		400.0			400.0			400.0			400.0			400.0			400.0			300.0
Parent Company Liquidity		$	1,138.7		$	670.5		$	599.1		$	606.8		$	569.1		$	712.7		$	418.6
Capital Returned to Shareholders
Cash Dividends Paid		$	19.7		$	19.7		$	20.0		$	18.7		$	16.7		$	16.2		$	16.2

Kemper Corporation

Debt Outstanding, FHLB Advances and Ratings

(Dollars in Millions)

(Unaudited)

	Sep 30,<br>2020		Jun 30,<br>2020		Mar 31, 2020		Dec 31, 2019		Sep 30, 2019		Jun 30, 2019		Mar 31, 2019
Kemper Corporation:
Term Loan due June 29, 2020	$	—	$	—	$	—	$	—	$	—	$	—	$	34.9
Term Loan due July 5, 2023	49.9		49.9		49.9		49.9		49.9		—		—
Senior Notes at Amortized Cost:
5.000% Senior Notes due September 19, 2022	278.7		279.1		279.6		279.9		280.3		280.6		281.0
4.350% Senior Notes due February 15, 2025	448.8		448.7		448.6		448.6		448.5		448.5		448.4
2.400% Senior Notes due September 30, 2030	395.6		—		—		—		—		—		—
7.375% Subordinated Debentures due February 27, 2054 at Amortized Cost	—		—		—		—		—		144.2		144.2
Long-term Debt Outstanding	$	1,173.0	$	777.7	$	778.1	$	778.4	$	778.7	$	873.3	$	908.5
Federal Home Loan Bank Advances to Insurance Subsidiaries:
Reported as Policyholder Contract Liabilities:
Federal Home Loan Bank of Chicago	$	444.1	$	454.3	$	364.2	$	243.4	$	137.6	$	155.0	$	187.7
Reported as Debt Outstanding:
Federal Home Loan Bank of Dallas	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Federal Home Loan Bank of Chicago	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Federal Home Loan Bank of San Francisco	$	—	$	—	$	—	$	—	$	—	$	—	$	—
	A.M. Best		Moody’s		S&P		Fitch
As of Date of Financial Supplement
Kemper Debt Ratings:
Senior Notes Payable	BBB-		Baa3		BBB		BBB
Insurance Company Financial Strength Ratings:
Trinity Universal Insurance Company	A-		A3		A		A
United Insurance Company of America	A-		A3		A-		A-
Reserve National Insurance Company	A-		NR		NR		NR
Infinity Insurance Company	A-		A3		A		NR

NR - Not Rated

Kemper Corporation

Segment Revenues

(Dollars in Millions)

(Unaudited)

	Three Months Ended														Nine Months Ended
	Sep 30,<br>2020		Jun 30,<br>2020		Mar 31,<br>2020		Dec 31,<br>2019		Sep 30,<br>2019		Jun 30,<br>2019		Mar 31,<br>2019		Sep 30,<br>2020		Sep 30,<br>2019
Revenues:
Specialty Property & Casualty Insurance:
Earned Premiums:
Specialty Automobile	$	792.2	$	689.8	$	753.2	$	733.1	$	719.2	$	703.7	$	669.6	$	2,235.2	$	2,092.5
Commercial Automobile	79.2		69.2		69.3		66.6		64.2		62.3		59.7		217.7		186.2
Total Specialty Property & Casualty Insurance Earned Premiums	871.4		759.0		822.5		799.7		783.4		766.0		729.3		2,452.9		2,278.7
Net Investment Income	30.5		16.9		28.8		28.3		28.8		28.9		21.5		76.2		79.2
Other Income	0.4		0.1		0.9		0.8		4.4		1.0		0.8		1.4		6.2
Total Specialty Property & Casualty Insurance Revenues	902.3		776.0		852.2		828.8		816.6		795.9		751.6		2,530.5		2,364.1
Preferred Property & Casualty Insurance:
Earned Premiums:
Preferred Automobile	110.6		99.1		114.9		117.2		119.7		117.9		115.4		324.6		353.0
Homeowners	55.0		55.6		56.8		58.7		61.5		60.8		60.3		167.4		182.6
Other Personal	8.9		8.9		9.2		9.3		9.8		9.8		9.9		27.0		29.5
Total Preferred Property & Casualty Insurance Earned Premiums	174.5		163.6		180.9		185.2		191.0		188.5		185.6		519.0		565.1
Net Investment Income	10.3		4.3		9.7		11.5		12.0		12.3		8.3		24.3		32.6
Other Income	—		0.1		—		—		—		—		—		0.1		—
Total Preferred Property & Casualty Insurance Revenues	184.8		168.0		190.6		196.7		203.0		200.8		193.9		543.4		597.7
Life & Health Insurance:
Earned Premiums:
Life	96.3		95.7		97.2		95.6		96.2		97.0		95.8		289.2		289.0
Accident and Health	48.9		50.8		49.4		48.5		47.6		47.9		46.9		149.1		142.4
Property	15.4		16.2		16.4		16.8		17.0		17.2		17.2		48.0		51.4
Total Life & Health Insurance Earned Premiums	160.6		162.7		163.0		160.9		160.8		162.1		159.9		486.3		482.8
Net Investment Income	50.7		44.3		51.0		52.0		49.7		53.0		51.7		146.0		154.4
Other Income	—		0.5		0.1		2.9		2.9		1.6		1.1		0.6		5.6
Total Life & Health Insurance Revenues	211.3		207.5		214.1		215.8		213.4		216.7		212.7		632.9		642.8
Total Segment Revenues	1,298.4		1,151.5		1,256.9		1,241.3		1,233.0		1,213.4		1,158.2		3,706.8		3,604.6
Income (Loss) from Change in Fair Value of Equity and Convertible Securities	45.2		71.6		(117.8)		39.2		9.8		25.5		64.4		(1.0)		99.7
Net Realized Gains on Sales of Investments	10.0		11.7		16.5		2.8		1.7		21.3		16.1		38.2		39.1
Impairment Losses	(1.0)		(7.0)		(12.0)		(1.7)		(1.8)		(6.7)		(3.6)		(20.0)		(12.1)
Other	1.1		3.1		85.4		2.1		1.1		21.9		1.2		89.6		24.2
Total Revenues	$	1,353.7	$	1,230.9	$	1,229.0	$	1,283.7	$	1,243.8	$	1,275.4	$	1,236.3	$	3,813.6	$	3,755.5

Kemper Corporation

Segment Operating Results

(Dollars in Millions)

(Unaudited)

	Three Months Ended														Nine Months Ended
	Sep 30,<br>2020		Jun 30,<br>2020		Mar 31,<br>2020		Dec 31,<br>2019		Sep 30,<br>2019		Jun 30,<br>2019		Mar 31,<br>2019		Sep 30,<br>2020		Sep 30,<br>2019
Segment Operating Profit:
Specialty Property & Casualty Insurance	$	149.9	$	84.5	$	75.0	$	78.5	$	98.6	$	79.4	$	99.4	$	309.4	$	277.4
Preferred Property & Casualty Insurance	(41.8)		0.8		23.0		16.1		26.5		6.4		3.3		(18.0)		36.2
Life & Health Insurance	15.2		19.9		26.5		35.5		41.0		16.1		29.3		61.6		86.4
Total Segment Operating Profit	123.3		105.2		124.5		130.1		166.1		101.9		132.0		353.0		400.0
Partial Satisfaction of Judgment	—		—		89.4		—		—		20.1		—		89.4		20.1
Other	(11.0)		(4.7)		(11.1)		(7.3)		(3.1)		(12.4)		(8.6)		(26.8)		(24.1)
Corporate and Other Operating Income (Loss)	(11.0)		(4.7)		78.3		(7.3)		(3.1)		7.7		(8.6)		62.6		(4.0)
Total Operating Profit	112.3		100.5		202.8		122.8		163.0		109.6		123.4		415.6		396.0
Income From:
Change in Fair Value of Equity and Convertible Securities	45.2		71.6		(117.8)		39.2		9.8		25.5		64.4		(1.0)		99.7
Net Realized Gains on Sales of Investments	10.0		11.7		16.5		2.8		1.7		21.3		16.1		38.2		39.1
Impairment Losses	(1.0)		(7.0)		(12.0)		(1.7)		(1.8)		(6.7)		(3.6)		(20.0)		(12.1)
Acquisition Related Transaction Integration and Other Costs	(14.4)		(17.1)		(11.8)		(6.2)		(5.4)		(1.2)		(5.6)		(43.3)		(12.2)
Loss from Early Extinguishment of Debt	—		—		—		—		(5.8)		—		—		—		(5.8)
Income before Income Taxes	$	152.1	$	159.7	$	77.7	$	156.9	$	161.5	$	148.5	$	194.7	$	389.5	$	504.7
Segment Net Operating Income:
Specialty Property & Casualty Insurance	$	119.2	$	67.5	$	60.1	$	62.3	$	78.5	$	62.7	$	79.6	$	246.8	$	220.8
Preferred Property & Casualty Insurance	(32.7)		0.9		18.4		12.8		21.1		5.2		2.8		(13.4)		29.1
Life & Health Insurance	12.2		16.1		22.3		28.9		33.4		13.3		23.1		50.6		69.8
Total Segment Net Operating Income	98.7		84.5		100.8		104.0		133.0		81.2		105.5		284.0		319.7
Corporate and Other Net Operating Income (Loss) From:
Partial Satisfaction of Legal Judgment	—		—		70.6		—		—		15.9		—		70.6		15.9
Other	(7.8)		(5.3)		(8.5)		(6.1)		(3.0)		(5.6)		(6.6)		(21.6)		(15.2)
Corporate and Other Net Operating Income (Loss)	(7.8)		(5.3)		62.1		(6.1)		(3.0)		10.3		(6.6)		49.0		0.7
Adjusted Consolidated Net Operating Income	90.9		79.2		162.9		97.9		130.0		91.5		98.9		333.0		320.4
Net Income (Loss) From:
Change in Fair Value of Equity and Convertible Securities	35.7		56.6		(93.1)		30.9		7.8		20.1		50.9		(0.8)		78.8
Net Realized Gains on Sales of Investments	7.9		9.3		13.0		2.2		1.4		16.8		12.7		30.2		30.9
Impairment Losses	(0.8)		(5.5)		(9.5)		(1.3)		(1.5)		(5.3)		(2.8)		(15.8)		(9.6)
Acquisition Related Transaction, Integration and Other Costs	(11.4)		(13.5)		(9.3)		(5.0)		(4.1)		(1.0)		(4.4)		(34.2)		(9.5)
Loss from Early Extinguishment of Debt	—		—		—		—		(4.6)		—		—		—		(4.6)
Net Income	$	122.3	$	126.1	$	64.0	$	124.7	$	129.0	$	122.1	$	155.3	$	312.4	$	406.4

Kemper Corporation

Catastrophe Frequency and Severity

(Dollars in Millions)

(Unaudited)

	Nine Months Ended September 30, 2020
	Specialty Property & Casualty Insurance Segment			Preferred Property & Casualty Insurance Segment			Life & Health Insurance Segment			Consolidated
	Number of Events	Losses and LAE		Number of Events	Losses and LAE		Number of Events	Losses and LAE		Number of Events	Losses and LAE
Range of Losses and LAE Per Event:
Below $5	48	$	6.8	48	$	38.4	7	$	7.1	49	$	42.1
$5 - $10	—	—		3	21.4		—	—		4	31.4
$10 - $15	—	—		1	10.6		—	—		1	10.7
$15 - $20	—	—		1	16.9		—	—		1	17.0
$20 - $25	—	—		—	—		—	—		—	—
Greater Than $25	—	—		—	—		—	—		—	—
Total	48	$	6.8	53	$	87.3	7	$	7.1	55	$	101.2
	Nine Months Ended September 30, 2019
	Specialty Property & Casualty Insurance Segment			Preferred Property & Casualty Insurance Segment			Life & Health Insurance Segment			Consolidated
	Number of Events	Losses and LAE		Number of Events	Losses and LAE		Number of Events	Losses and LAE		Number of Events	Losses and LAE
Range of Losses and LAE Per Event:
Below $5	31	$	7.3	41	$	25.8	19	$	2.6	43	$	33.8
$5 - $10	—	—		2	12.0		—	—		2	13.0
$10 - $15	—	—		1	13.3		—	—		1	14.2
$15 - $20	—	—		—	—		—	—		—	—
$20 - $25	—	—		—	—		—	—		—	—
Greater Than $25	—	—		—	—		—	—		—	—
Total	31	$	7.3	44	$	51.1	19	$	2.6	46	$	61.0

Kemper Corporation

Specialty Property & Casualty Insurance Segment

Results of Operations and Selected Financial Information

(Dollars in Millions)

(Unaudited)

	Three Months Ended																					Nine Months Ended
	Sep 30,<br>2020			Jun 30,<br>2020			Mar 31,<br>2020			Dec 31,<br>2019			Sep 30,<br>2019			Jun 30,<br>2019			Mar 31,<br>2019			Sep 30,<br>2020			Sep 30,<br>2019
Results of Operations
Net Premiums Written	$	914.2		$	780.9		$	911.2		$	782.5		$	815.0		$	804.7		$	809.1		$	2,606.3		$	2,428.8
Earned Premiums	$	871.4		$	759.0		$	822.5		$	799.7		$	783.4		$	766.0		$	729.3		$	2,452.9		$	2,278.7
Net Investment Income	30.5			16.9			28.8			28.3			28.8			28.9			21.5			76.2			79.2
Other Income	0.4			0.1			0.9			0.8			4.4			1.0			0.8			1.4			6.2
Total Revenues	902.3			776.0			852.2			828.8			816.6			795.9			751.6			2,530.5			2,364.1
Incurred Losses and LAE related to:
Current Year:
Non-catastrophe Losses and LAE	589.0			515.8			619.8			599.5			579.4			579.2			544.3			1,724.6			1,702.9
Catastrophe Losses and LAE	2.1			4.5			0.2			3.8			2.3			4.4			0.6			6.8			7.3
Prior Years:
Non-catastrophe Losses and LAE	1.9			9.6			5.3			(4.1)			(4.1)			(8.6)			(18.3)			16.8			(31.0)
Catastrophe Losses and LAE	(0.1)			—			0.2			0.2			0.2			(0.1)			0.2			0.1			0.3
Total Incurred Losses and LAE	592.9			529.9			625.5			599.4			577.8			574.9			526.8			1,748.3			1,679.5
Insurance Expenses	159.5			161.2			152.1			150.7			139.2			140.9			124.8			472.8			404.9
Other Expenses	—			0.4			(0.4)			0.2			1.0			0.7			0.6			—			2.3
Operating Profit	149.9			84.5			75.0			78.5			98.6			79.4			99.4			309.4			277.4
Income Tax Expense	(30.7)			(17.0)			(14.9)			(16.2)			(20.1)			(16.7)			(19.8)			(62.6)			(56.6)
Segment Net Operating Income	$	119.2		$	67.5		$	60.1		$	62.3		$	78.5		$	62.7		$	79.6		$	246.8		$	220.8
Ratios Based On Earned Premiums
Current Year Non-catastrophe Losses and LAE Ratio	67.6		%	67.9		%	75.4		%	75.0		%	74.0		%	75.6		%	74.6		%	70.3		%	74.8		%
Current Year Catastrophe Losses and LAE Ratio	0.2			0.6			—			0.5			0.3			0.6			0.1			0.3			0.3
Prior Years Non-catastrophe Losses and LAE Ratio	0.2			1.3			0.6			(0.5)			(0.5)			(1.1)			(2.5)			0.7			(1.4)
Prior Years Catastrophe Losses and LAE Ratio	—			—			—			—			—			—			—			—			—
Total Incurred Loss and LAE Ratio	68.0			69.8			76.0			75.0			73.8			75.1			72.2			71.3			73.7
Insurance Expense Ratio	18.3			21.2			18.5			18.8			17.8			18.4			17.1			19.3			17.8
Combined Ratio	86.3		%	91.0		%	94.5		%	93.8		%	91.6		%	93.5		%	89.3		%	90.6		%	91.5		%
Underlying Combined Ratio 1
Current Year Non-catastrophe Losses and LAE Ratio	67.6		%	67.9		%	75.4		%	75.0		%	74.0		%	75.6		%	74.6		%	70.3		%	74.8		%
Insurance Expense Ratio	18.3			21.2			18.5			18.8			17.8			18.4			17.1			19.3			17.8
Underlying Combined Ratio	85.9		%	89.1		%	93.9		%	93.8		%	91.8		%	94.0		%	91.7		%	89.6		%	92.6		%
Non-GAAP Measure Reconciliation
Combined Ratio as Reported	86.3		%	91.0		%	94.5		%	93.8		%	91.6		%	93.5		%	89.3		%	90.6		%	91.5		%
Less:
Current Year Catastrophe Losses and LAE Ratio	0.2			0.6			—			0.5			0.3			0.6			0.1			0.3			0.3
Prior Years Non-catastrophe Losses and LAE Ratio	0.2			1.3			0.6			(0.5)			(0.5)			(1.1)			(2.5)			0.7			(1.4)
Prior Years Catastrophe Losses and LAE Ratio	—			—			—			—			—			—			—			—			—
Underlying Combined Ratio	85.9		%	89.1		%	93.9		%	93.8		%	91.8		%	94.0		%	91.7		%	89.6		%	92.6		%
1 Underlying Combined Ratio is a non-GAAP measure, which is computed as the difference between three operating ratios: the combined ratio, the effect of catastrophes (excluding development of prior-year catastrophes) on the combined ratio and the effect of prior-year reserve development at the reporting date (including development on prior-year catastrophes) on the combined ratio.

Kemper Corporation

Specialty Property & Casualty Insurance Segment

Results of Operations and Selected Financial Information (continued)

(Dollars in Millions)

(Unaudited)

	Sep 30,<br>2020		Jun 30,<br>2020		Mar 31, 2020		Dec 31, 2019		Sep 30, 2019		Jun 30, 2019		Mar 31, 2019
Insurance Reserves:
Non-Standard Automobile	$	1,271.9	$	1,252.6	$	1,326.3	$	1,321.9	$	1,278.7	$	1,229.7	$	1,181.2
Commercial Automobile	223.0		221.0		215.1		229.1		223.9		218.9		218.4
Insurance Reserves	$	1,494.9	$	1,473.6	$	1,541.4	$	1,551.0	$	1,502.6	$	1,448.6	$	1,399.6
Insurance Reserves:
Loss and Allocated LAE Reserves:
Case and Allocated LAE	$	718.8	$	667.9	$	716.0	$	730.0	$	760.2	$	721.6	$	696.1
Incurred but Not Reported	631.8		660.8		679.1		672.2		598.8		587.8		565.6
Total Loss Reserves	1,350.6		1,328.7		1,395.1		1,402.2		1,359.0		1,309.4		1,261.7
Unallocated LAE Reserves	144.3		144.9		146.3		148.8		143.6		139.2		137.9
Insurance Reserves	$	1,494.9	$	1,473.6	$	1,541.4	$	1,551.0	$	1,502.6	$	1,448.6	$	1,399.6

Kemper Corporation

Specialty Property & Casualty Insurance Segment

Specialty Personal Automobile Insurance - Results of Operations and Selected Financial Information

(Dollars in Millions)

(Unaudited)

	Three Months Ended																					Nine Months Ended
	Sep 30,<br>2020			Jun 30,<br>2020			Mar 31,<br>2020			Dec 31,<br>2019			Sep 30,<br>2019			Jun 30,<br>2019			Mar 31,<br>2019			Sep 30,<br>2020			Sep 30,<br>2019
Results of Operations
Net Premiums Written	$	819.4		$	700.5		$	830.3		$	714.9		$	749.5		$	734.5		$	742.2		$	2,350.2		$	2,226.2
Earned Premiums	$	792.2		$	689.8		$	753.2		$	733.1		$	719.2		$	703.7		$	669.6		$	2,235.2		$	2,092.5
Net Investment Income	26.2			15.2			24.8			24.5			24.9			24.6			18.4			66.2			67.9
Other Income	0.4			0.1			0.8			0.8			4.3			0.9			0.8			1.3			6.0
Total Revenues	818.8			705.1			778.8			758.4			748.4			729.2			688.8			2,302.7			2,166.4
Incurred Losses and LAE related to:
Current Year:
Non-catastrophe Losses and LAE	543.4			472.4			576.0			557.5			538.2			537.0			498.8			1,591.8			1,574.0
Catastrophe Losses and LAE	2.0			4.2			0.2			3.3			2.0			4.1			0.5			6.4			6.6
Prior Years:
Non-catastrophe Losses and LAE	2.1			11.2			17.8			(4.4)			(1.8)			(3.7)			(14.4)			31.1			(19.9)
Catastrophe Losses and LAE	(0.1)			0.1			0.2			0.2			0.2			—			0.1			0.2			0.3
Total Incurred Losses and LAE	547.4			487.9			594.2			556.6			538.6			537.4			485.0			1,629.5			1,561.0
Insurance Expenses	145.6			146.7			139.2			138.1			128.4			128.9			114.7			431.5			372.0
Other Expenses	—			0.4			(0.4)			0.2			1.0			0.7			0.6			—			2.3
Operating Profit	125.8			70.1			45.8			63.5			80.4			62.2			88.5			241.7			231.1
Income Tax Expense	(25.7)			(14.2)			(8.8)			(10.5)			(18.4)			(13.0)			(17.8)			(48.7)			(49.2)
Total Product Line Net Operating Income	$	100.1		$	55.9		$	37.0		$	53.0		$	62.0		$	49.2		$	70.7		$	193.0		$	181.9
Ratios Based On Earned Premiums
Current Year Non-catastrophe Losses and LAE Ratio	68.5		%	68.5		%	76.5		%	76.0		%	74.9		%	76.3		%	74.5		%	71.2		%	75.3		%
Current Year Catastrophe Losses and LAE Ratio	0.3			0.6			—			0.5			0.3			0.6			0.1			0.3			0.3
Prior Years Non-catastrophe Losses and LAE Ratio	0.3			1.6			2.4			(0.6)			(0.3)			(0.5)			(2.2)			1.4			(1.0)
Prior Years Catastrophe Losses and LAE Ratio	—			—			—			—			—			—			—			—			—
Total Incurred Loss and LAE Ratio	69.1			70.7			78.9			75.9			74.9			76.4			72.4			72.9			74.6
Insurance Expense Ratio	18.4			21.3			18.5			18.8			17.9			18.3			17.1			19.3			17.8
Combined Ratio	87.5		%	92.0		%	97.4		%	94.7		%	92.8		%	94.7		%	89.5		%	92.2		%	92.4		%
Underlying Combined Ratio 1
Current Year Non-catastrophe Losses and LAE Ratio	68.5		%	68.5		%	76.5		%	76.0		%	74.9		%	76.3		%	74.5		%	71.2		%	75.3		%
Insurance Expense Ratio	18.4			21.3			18.5			18.8			17.9			18.3			17.1			19.3			17.8
Underlying Combined Ratio	86.9		%	89.8		%	95.0		%	94.8		%	92.8		%	94.6		%	91.6		%	90.5		%	93.1		%
Non-GAAP Measure Reconciliation
Combined Ratio	87.5		%	92.0		%	97.4		%	94.7		%	92.8		%	94.7		%	89.5		%	92.2		%	92.4		%
Less:
Current Year Catastrophe Losses and LAE Ratio	0.3			0.6			—			0.5			0.3			0.6			0.1			0.3			0.3
Prior Years Non-catastrophe Losses and LAE Ratio	0.3			1.6			2.4			(0.6)			(0.3)			(0.5)			(2.2)			1.4			(1.0)
Prior Years Catastrophe Losses and LAE Ratio	—			—			—			—			—			—			—			—			—
Underlying Combined Ratio	86.9		%	89.8		%	95.0		%	94.8		%	92.8		%	94.6		%	91.6		%	90.5		%	93.1		%
1 Underlying Combined Ratio is a non-GAAP measure, which is computed as the difference between three operating ratios: the combined ratio, the effect of catastrophes (excluding development of prior-year catastrophes) on the combined ratio and the effect of prior-year reserve development at the reporting date (including development on prior-year catastrophes) on the combined ratio.

Kemper Corporation

Specialty Property & Casualty Insurance Segment

Commercial Automobile Insurance - Results of Operations and Selected Financial Information

(Dollars in Millions)

(Unaudited)

	Three Months Ended																					Nine Months Ended
	Sep 30,<br>2020			Jun 30,<br>2020			Mar 31,<br>2020			Dec 31,<br>2019			Sep 30,<br>2019			Jun 30,<br>2019			Mar 31,<br>2019			Sep 30,<br>2020			Sep 30,<br>2019
Results of Operations
Net Premiums Written	$	94.8		$	80.4		$	80.9		$	67.6		$	65.5		$	70.2		$	66.9		$	256.1		$	202.6
Earned Premiums	$	79.2		$	69.2		$	69.3		$	66.6		$	64.2		$	62.3		$	59.7		$	217.7		$	186.2
Net Investment Income	4.3			1.7			4.0			3.8			3.9			4.3			3.1			10.0			11.3
Other Income	—			—			0.1			—			0.1			0.1			—			0.1			0.2
Total Revenues	83.5			70.9			73.4			70.4			68.2			66.7			62.8			227.8			197.7
Incurred Losses and LAE related to:
Current Year:
Non-catastrophe Losses and LAE	45.6			43.4			43.8			42.0			41.2			42.2			45.5			132.8			128.9
Catastrophe Losses and LAE	0.1			0.3			—			0.5			0.3			0.3			0.1			0.4			0.7
Prior Years:
Non-catastrophe Losses and LAE	(0.2)			(1.6)			(12.5)			0.3			(2.3)			(4.9)			(3.9)			(14.3)			(11.1)
Catastrophe Losses and LAE	—			(0.1)			—			—			—			(0.1)			0.1			(0.1)			—
Total Incurred Losses and LAE	45.5			42.0			31.3			42.8			39.2			37.5			41.8			118.8			118.5
Insurance Expenses	13.9			14.5			12.9			12.6			10.8			12.0			10.1			41.3			32.9
Operating Profit	24.1			14.4			29.2			15.0			18.2			17.2			10.9			67.7			46.3
Income Tax Expense	(5.0)			(2.8)			(6.1)			(5.7)			(1.7)			(3.7)			(2.0)			(13.9)			(7.4)
Total Product Line Net Operating Income	$	19.1		$	11.6		$	23.1		$	9.3		$	16.5		$	13.5		$	8.9		$	53.8		$	38.9
Ratios Based On Earned Premiums
Current Year Non-catastrophe Losses and LAE Ratio	57.6		%	62.7		%	63.2		%	63.0		%	64.2		%	67.7		%	76.1		%	61.0		%	69.2		%
Current Year Catastrophe Losses and LAE Ratio	0.1			0.4			—			0.8			0.5			0.5			0.2			0.2			0.4
Prior Years Non-catastrophe Losses and LAE Ratio	(0.3)			(2.3)			(18.0)			0.5			(3.6)			(7.9)			(6.5)			(6.6)			(6.0)
Prior Years Catastrophe Losses and LAE Ratio	—			(0.1)			—			—			—			(0.1)			0.2			—			—
Total Incurred Loss and LAE Ratio	57.4			60.7			45.2			64.3			61.1			60.2			70.0			54.6			63.6
Insurance Expense Ratio	17.6			21.0			18.6			18.9			16.8			19.3			16.9			19.0			17.7
Combined Ratio	75.0		%	81.7		%	63.8		%	83.2		%	77.9		%	79.5		%	86.9		%	73.6		%	81.3		%
Underlying Combined Ratio 1
Current Year Non-catastrophe Losses and LAE Ratio	57.6		%	62.7		%	63.2		%	63.0		%	64.2		%	67.7		%	76.1		%	61.0		%	69.2		%
Insurance Expense Ratio	17.6			21.0			18.6			18.9			16.8			19.3			16.9			19.0			17.7
Underlying Combined Ratio	75.2		%	83.7		%	81.8		%	81.9		%	81.0		%	87.0		%	93.0		%	80.0		%	86.9		%
Non-GAAP Measure Reconciliation
Combined Ratio	75.0		%	81.7		%	63.8		%	83.2		%	77.9		%	79.5		%	86.9		%	73.6		%	81.3		%
Less:
Current Year Catastrophe Losses and LAE Ratio	0.1			0.4			—			0.8			0.5			0.5			0.2			0.2			0.4
Prior Years Non-catastrophe Losses and LAE Ratio	(0.3)			(2.3)			(18.0)			0.5			(3.6)			(7.9)			(6.5)			(6.6)			(6.0)
Prior Years Catastrophe Losses and LAE Ratio	—			(0.1)			—			—			—			(0.1)			0.2			—			—
Underlying Combined Ratio	75.2		%	83.7		%	81.8		%	81.9		%	81.0		%	87.0		%	93.0		%	80.0		%	86.9		%
1 Underlying Combined Ratio is a non-GAAP measure, which is computed as the difference between three operating ratios: the combined ratio, the effect of catastrophes (excluding development of prior-year catastrophes) on the combined ratio and the effect of prior-year reserve development at the reporting date (including development on prior-year catastrophes) on the combined ratio.

Kemper Corporation

Preferred Property & Casualty Insurance Segment

Results of Operations and Selected Financial Information

(Dollars in Millions)

(Unaudited)

	Three Months Ended																					Nine Months Ended
	Sep 30,<br>2020			Jun 30,<br>2020			Mar 31,<br>2020			Dec 31,<br>2019			Sep 30,<br>2019			Jun 30,<br>2019			Mar 31,<br>2019			Sep 30,<br>2020			Sep 30,<br>2019
Results of Operations
Net Premiums Written	$	172.2		$	161.5		$	164.1		$	172.6		$	189.6		$	197.5		$	179.6		$	497.8		$	566.7
Earned Premiums	$	174.5		$	163.6		$	180.9		$	185.2		$	191.0		$	188.5		$	185.6		$	519.0		$	565.1
Net Investment Income	10.3			4.3			9.7			11.5			12.0			12.3			8.3			24.3			32.6
Other Income	—			0.1			—			—			—			—			—			0.1			—
Total Revenues	184.8			168.0			190.6			196.7			203.0			200.8			193.9			543.4			597.7
Incurred Losses and LAE related to:
Current Year:
Non-catastrophe Losses and LAE	102.8			82.5			108.5			120.2			121.7			119.1			120.8			293.8			361.6
Catastrophe Losses and LAE	61.9			20.6			4.8			11.9			11.9			22.6			16.6			87.3			51.1
Prior Years:
Non-catastrophe Losses and LAE	6.3			8.2			(3.3)			(7.1)			(1.1)			(4.3)			(5.1)			11.2			(10.5)
Catastrophe Losses and LAE	0.1			0.4			(1.1)			(3.1)			(15.4)			(0.9)			1.0			(0.6)			(15.3)
Total Incurred Losses and LAE	171.1			111.7			108.9			121.9			117.1			136.5			133.3			391.7			386.9
Insurance Expenses	55.5			55.5			58.7			58.7			59.4			57.9			57.3			169.7			174.6
Operating Profit (Loss)	(41.8)			0.8			23.0			16.1			26.5			6.4			3.3			(18.0)			36.2
Income Tax Benefit (Expense)	9.1			0.1			(4.6)			(3.3)			(5.4)			(1.2)			(0.5)			4.6			(7.1)
Segment Net Operating Income (Loss)	$	(32.7)		$	0.9		$	18.4		$	12.8		$	21.1		$	5.2		$	2.8		$	(13.4)		$	29.1
Ratios Based On Earned Premiums
Current Year Non-catastrophe Losses and LAE Ratio	58.9		%	50.5		%	59.9		%	64.9		%	63.8		%	63.2		%	65.1		%	56.6		%	64.1		%
Current Year Catastrophe Losses and LAE Ratio	35.5			12.6			2.7			6.4			6.2			12.0			8.9			16.8			9.0
Prior Years Non-catastrophe Losses and LAE Ratio	3.6			5.0			(1.8)			(3.8)			(0.6)			(2.3)			(2.7)			2.2			(1.9)
Prior Years Catastrophe Losses and LAE Ratio	0.1			0.2			(0.6)			(1.7)			(8.1)			(0.5)			0.5			(0.1)			(2.7)
Total Incurred Loss and LAE Ratio	98.1			68.3			60.2			65.8			61.3			72.4			71.8			75.5			68.5
Insurance Expense Ratio	31.8			33.9			32.4			31.7			31.1			30.7			30.9			32.7			30.9
Combined Ratio	129.9		%	102.2		%	92.6		%	97.5		%	92.4		%	103.1		%	102.7		%	108.2		%	99.4		%
Underlying Combined Ratio 1
Current Year Non-catastrophe Losses and LAE Ratio	58.9		%	50.5		%	59.9		%	64.9		%	63.8		%	63.2		%	65.1		%	56.6		%	64.1		%
Insurance Expense Ratio	31.8			33.9			32.4			31.7			31.1			30.7			30.9			32.7			30.9
Underlying Combined Ratio	90.7		%	84.4		%	92.3		%	96.6		%	94.9		%	93.9		%	96.0		%	89.3		%	95.0		%
Non-GAAP Measure Reconciliation
Combined Ratio as Reported	129.9		%	102.2		%	92.6		%	97.5		%	92.4		%	103.1		%	102.7		%	108.2		%	99.4		%
Less:
Current Year Catastrophe Losses and LAE Ratio	35.5			12.6			2.7			6.4			6.2			12.0			8.9			16.8			9.0
Prior Years Non-catastrophe Losses and LAE Ratio	3.6			5.0			(1.8)			(3.8)			(0.6)			(2.3)			(2.7)			2.2			(1.9)
Prior Years Catastrophe Losses and LAE Ratio	0.1			0.2			(0.6)			(1.7)			(8.1)			(0.5)			0.5			(0.1)			(2.7)
Underlying Combined Ratio	90.7		%	84.4		%	92.3		%	96.6		%	94.9		%	93.9		%	96.0		%	89.3		%	95.0		%
1 Underlying Combined Ratio is a non-GAAP measure, which is computed as the difference between three operating ratios: the combined ratio, the effect of catastrophes (excluding development of prior-year catastrophes) on the combined ratio and the effect of prior-year reserve development at the reporting date (including development on prior-year catastrophes) on the combined ratio.

Kemper Corporation

Preferred Property & Casualty Insurance Segment

Results of Operations and Selected Financial Information (continued)

(Dollars in Millions)

(Unaudited)

	Sep 30,<br>2020		Jun 30,<br>2020		Mar 31, 2020		Dec 31, 2019		Sep 30, 2019		Jun 30, 2019		Mar 31, 2019
Insurance Reserves:
Preferred Automobile	$	265.2	$	252.8	$	254.8	$	262.3	$	267.3	$	264.5	$	268.0
Homeowners	137.9		99.5		90.8		95.3		108.8		131.6		133.5
Other Personal	25.5		25.7		28.8		30.9		32.2		34.0		34.3
Insurance Reserves	$	428.6	$	378.0	$	374.4	$	388.5	$	408.3	$	430.1	$	435.8
Insurance Reserves:
Loss and Allocated LAE Reserves:
Case and Allocated LAE	$	266.8	$	230.7	$	231.1	$	241.3	$	277.8	$	278.5	$	290.2
Incurred but Not Reported	134.2		119.6		115.1		118.8		100.4		120.2		113.0
Total Loss Reserves	401.0		350.3		346.2		360.1		378.2		398.7		403.2
Unallocated LAE Reserves	27.6		27.7		28.2		28.4		30.1		31.4		32.6
Insurance Reserves	$	428.6	$	378.0	$	374.4	$	388.5	$	408.3	$	430.1	$	435.8

Kemper Corporation

Preferred Property & Casualty Insurance Segment

Preferred Personal Automobile Insurance - Results of Operations and Selected Financial Information

(Dollars in Millions)

(Unaudited)

	Three Months Ended																					Nine Months Ended
	Sep 30,<br>2020			Jun 30,<br>2020			Mar 31,<br>2020			Dec 31,<br>2019			Sep 30,<br>2019			Jun 30,<br>2019			Mar 31,<br>2019			Sep 30,<br>2020			Sep 30,<br>2019
Results of Operations
Net Premiums Written	$	107.2		$	95.6		$	105.9		$	111.5		$	117.5		$	123.4		$	116.5		$	308.7		$	357.4
Earned Premiums	$	110.6		$	99.1		$	114.9		$	117.2		$	119.7		$	117.9		$	115.4		$	324.6		$	353.0
Net Investment Income	6.1			2.5			5.8			5.4			5.6			5.8			3.9			14.4			15.3
Other Income	—			0.1			—			—			—			—			—			0.1			—
Total Revenues	116.7			101.7			120.7			122.6			125.3			123.7			119.3			339.1			368.3
Incurred Losses and LAE related to:
Current Year:
Non-catastrophe Losses and LAE	72.2			53.8			75.9			86.2			83.2			82.9			80.2			201.9			246.3
Catastrophe Losses and LAE	1.8			2.0			0.2			1.5			2.1			1.7			2.5			4.0			6.3
Prior Years:
Non-catastrophe Losses and LAE	5.9			9.7			2.2			(2.8)			(0.5)			(3.7)			(1.2)			17.8			(5.4)
Catastrophe Losses and LAE	(0.2)			(0.3)			(0.1)			0.2			(0.1)			—			(0.1)			(0.6)			(0.2)
Total Incurred Losses and LAE	79.7			65.2			78.2			85.1			84.7			80.9			81.4			223.1			247.0
Insurance Expenses	34.7			34.0			36.1			36.3			36.8			35.5			35.0			104.8			107.3
Operating Profit	2.3			2.5			6.4			1.2			3.8			7.3			2.9			11.2			14.0
Income Tax Expense	(0.3)			(0.4)			(1.2)			(0.2)			(0.7)			(1.5)			(0.5)			(1.9)			(2.7)
Total Product Line Net Operating Income (Loss)	$	2.0		$	2.1		$	5.2		$	1.0		$	3.1		$	5.8		$	2.4		$	9.3		$	11.3
Ratios Based On Earned Premiums
Current Year Non-catastrophe Losses and LAE Ratio	65.4		%	54.3		%	66.1		%	73.5		%	69.5		%	70.3		%	69.4		%	62.2		%	69.8		%
Current Year Catastrophe Losses and LAE Ratio	1.6			2.0			0.2			1.3			1.8			1.4			2.2			1.2			1.8
Prior Years Non-catastrophe Losses and LAE Ratio	5.3			9.8			1.9			(2.4)			(0.4)			(3.1)			(1.0)			5.5			(1.5)
Prior Years Catastrophe Losses and LAE Ratio	(0.2)			(0.3)			(0.1)			0.2			(0.1)			—			(0.1)			(0.2)			(0.1)
Total Incurred Loss and LAE Ratio	72.1			65.8			68.1			72.6			70.8			68.6			70.5			68.7			70.0
Insurance Expense Ratio	31.4			34.3			31.4			31.0			30.7			30.1			30.3			32.3			30.4
Combined Ratio	103.5		%	100.1		%	99.5		%	103.6		%	101.5		%	98.7		%	100.8		%	101.0		%	100.4		%
Underlying Combined Ratio 1
Current Year Non-catastrophe Losses and LAE Ratio	65.4		%	54.3		%	66.1		%	73.5		%	69.5		%	70.3		%	69.4		%	62.2		%	69.8		%
Insurance Expense Ratio	31.4			34.3			31.4			31.0			30.7			30.1			30.3			32.3			30.4
Underlying Combined Ratio	96.8		%	88.6		%	97.5		%	104.5		%	100.2		%	100.4		%	99.7		%	94.5		%	100.2		%
Non-GAAP Measure Reconciliation
Combined Ratio	103.5		%	100.1		%	99.5		%	103.6		%	101.5		%	98.7		%	100.8		%	101.0		%	100.4		%
Less:
Current Year Catastrophe Losses and LAE Ratio	1.6			2.0			0.2			1.3			1.8			1.4			2.2			1.2			1.8
Prior Years Non-catastrophe Losses and LAE Ratio	5.3			9.8			1.9			(2.4)			(0.4)			(3.1)			(1.0)			5.5			(1.5)
Prior Years Catastrophe Losses and LAE Ratio	(0.2)			(0.3)			(0.1)			0.2			(0.1)			—			(0.1)			(0.2)			(0.1)
Underlying Combined Ratio	96.8		%	88.6		%	97.5		%	104.5		%	100.2		%	100.4		%	99.7		%	94.5		%	100.2		%
1 Underlying Combined Ratio is a non-GAAP measure, which is computed as the difference between three operating ratios: the combined ratio, the effect of catastrophes (excluding development of prior-year catastrophes) on the combined ratio and the effect of prior-year reserve development at the reporting date (including development on prior-year catastrophes) on the combined ratio.

Kemper Corporation

Preferred Property & Casualty Insurance Segment

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

(Dollars in Millions)

(Unaudited)

	Three Months Ended																					Nine Months Ended
	Sep 30,<br>2020			Jun 30,<br>2020			Mar 31,<br>2020			Dec 31,<br>2019			Sep 30,<br>2019			Jun 30,<br>2019			Mar 31,<br>2019			Sep 30,<br>2020			Sep 30,<br>2019
Results of Operations
Net Premiums Written	$	65.0		$	65.9		$	58.2		$	61.1		$	72.1		$	74.1		$	63.1		$	189.1		$	209.3
Earned Premiums	$	63.9		$	64.5		$	66.0		$	68.0		$	71.3		$	70.6		$	70.2		$	194.4		$	212.1
Net Investment Income	4.2			1.8			3.9			6.1			6.4			6.5			4.4			9.9			17.3
Total Revenues	68.1			66.3			69.9			74.1			77.7			77.1			74.6			204.3			229.4
Incurred Losses and LAE related to:
Current Year:
Non-catastrophe Losses and LAE	30.6			28.7			32.6			34.0			38.5			36.2			40.6			91.9			115.3
Catastrophe Losses and LAE	60.1			18.6			4.6			10.4			9.8			20.9			14.1			83.3			44.8
Prior Years:
Non-catastrophe Losses and LAE	0.4			(1.5)			(5.5)			(4.3)			(0.6)			(0.6)			(3.9)			(6.6)			(5.1)
Catastrophe Losses and LAE	0.3			0.7			(1.0)			(3.3)			(15.3)			(0.9)			1.1			—			(15.1)
Total Incurred Losses and LAE	91.4			46.5			30.7			36.8			32.4			55.6			51.9			168.6			139.9
Insurance Expenses	20.8			21.5			22.6			22.4			22.6			22.4			22.3			64.9			67.3
Operating Profit (Loss)	(44.1)			(1.7)			16.6			14.9			22.7			(0.9)			0.4			(29.2)			22.2
Income Tax Benefit (Expense)	9.4			0.5			(3.4)			(3.1)			(4.7)			0.3			—			6.5			(4.4)
Total Product Line Net Operating Income (Loss)	$	(34.7)		$	(1.2)		$	13.2		$	11.8		$	18.0		$	(0.6)		$	0.4		$	(22.7)		$	17.8
Ratios Based On Earned Premiums
Current Year Non-catastrophe Losses and LAE Ratio	47.8		%	44.5		%	49.3		%	50.0		%	54.0		%	51.3		%	57.8		%	47.3		%	54.4		%
Current Year Catastrophe Losses and LAE Ratio	94.1			28.8			7.0			15.3			13.7			29.6			20.1			42.8			21.1
Prior Years Non-catastrophe Losses and LAE Ratio	0.6			(2.3)			(8.3)			(6.3)			(0.8)			(0.8)			(5.6)			(3.4)			(2.4)
Prior Years Catastrophe Losses and LAE Ratio	0.5			1.1			(1.5)			(4.9)			(21.5)			(1.3)			1.6			—			(7.1)
Total Incurred Loss and LAE Ratio	143.0			72.1			46.5			54.1			45.4			78.8			73.9			86.7			66.0
Insurance Expense Ratio	32.6			33.3			34.2			32.9			31.7			31.7			31.8			33.4			31.7
Combined Ratio	175.6		%	105.4		%	80.7		%	87.0		%	77.1		%	110.5		%	105.7		%	120.1		%	97.7		%
Underlying Combined Ratio 1
Current Year Non-catastrophe Losses and LAE Ratio	47.8		%	44.5		%	49.3		%	50.0		%	54.0		%	51.3		%	57.8		%	47.3		%	54.4		%
Insurance Expense Ratio	32.6			33.3			34.2			32.9			31.7			31.7			31.8			33.4			31.7
Underlying Combined Ratio	80.4		%	77.8		%	83.5		%	82.9		%	85.7		%	83.0		%	89.6		%	80.7		%	86.1		%
Non-GAAP Measure Reconciliation
Combined Ratio	175.6		%	105.4		%	80.7		%	87.0		%	77.1		%	110.5		%	105.7		%	120.1		%	97.7		%
Less:
Current Year Catastrophe Losses and LAE Ratio	94.1			28.8			7.0			15.3			13.7			29.6			20.1			42.8			21.1
Prior Years Non-catastrophe Losses and LAE Ratio	0.6			(2.3)			(8.3)			(6.3)			(0.8)			(0.8)			(5.6)			(3.4)			(2.4)
Prior Years Catastrophe Losses and LAE Ratio	0.5			1.1			(1.5)			(4.9)			(21.5)			(1.3)			1.6			—			(7.1)
Underlying Combined Ratio	80.4		%	77.8		%	83.5		%	82.9		%	85.7		%	83.0		%	89.6		%	80.7		%	86.1		%
1Underlying Combined Ratio is a non-GAAP measure, which is computed as the difference between three operating ratios: the combined ratio, the effect of catastrophes (excluding development of prior-year catastrophes) on the combined ratio and the effect of prior-year reserve development at the reporting date (including development on prior-year catastrophes) on the combined ratio.

Kemper Corporation

Preferred Property & Casualty Insurance Segment

Homeowners Insurance - Results of Operations and Selected Financial Information

(Dollars in Millions)

(Unaudited)

	Three Months Ended																					Nine Months Ended
	Sep 30,<br>2020			Jun 30,<br>2020			Mar 31,<br>2020			Dec 31,<br>2019			Sep 30,<br>2019			Jun 30,<br>2019			Mar 31,<br>2019			Sep 30,<br>2020			Sep 30,<br>2019
Results of Operations
Net Premiums Written	$	55.7		$	57.2		$	49.9		$	52.5		$	62.3		$	64.2		$	54.1		$	162.8		$	180.6
Earned Premiums	$	55.0		$	55.6		$	56.8		$	58.7		$	61.5		$	60.8		$	60.3		$	167.4		$	182.6
Net Investment Income	3.8			1.6			3.6			5.2			5.5			5.6			3.8			9.0			14.9
Total Revenues	58.8			57.2			60.4			63.9			67.0			66.4			64.1			176.4			197.5
Incurred Losses and LAE related to:
Current Year:
Non-catastrophe Losses and LAE	28.1			25.4			28.7			30.0			34.2			31.6			35.8			82.2			101.6
Catastrophe Losses and LAE	58.6			18.2			4.5			10.3			9.3			20.6			13.8			81.3			43.7
Prior Years:
Non-catastrophe Losses and LAE	2.0			(0.8)			(4.3)			(2.7)			0.2			0.9			(1.1)			(3.1)			—
Catastrophe Losses and LAE	0.2			0.6			(0.7)			(3.4)			(13.6)			(1.0)			1.0			0.1			(13.6)
Total Incurred Losses and LAE	88.9			43.4			28.2			34.2			30.1			52.1			49.5			160.5			131.7
Insurance Expenses	18.2			18.6			19.5			19.6			19.8			19.7			19.6			56.3			59.1
Operating Profit (Loss)	(48.3)			(4.8)			12.7			10.1			17.1			(5.4)			(5.0)			(40.4)			6.7
Income Tax Benefit (Expense)	10.3			1.1			(2.6)			(2.1)			(3.5)			1.2			1.1			8.8			(1.2)
Total Product Line Net Operating Income (Loss)	$	(38.0)		$	(3.7)		$	10.1		$	8.0		$	13.6		$	(4.2)		$	(3.9)		$	(31.6)		$	5.5
Ratios Based On Earned Premiums
Current Year Non-catastrophe Losses and LAE Ratio	51.1		%	45.7		%	50.5		%	51.2		%	55.6		%	51.9		%	59.3		%	49.1		%	55.6		%
Current Year Catastrophe Losses and LAE Ratio	106.5			32.7			7.9			17.5			15.1			33.9			22.9			48.6			23.9
Prior Years Non-catastrophe Losses and LAE Ratio	3.6			(1.4)			(7.6)			(4.6)			0.3			1.5			(1.8)			(1.9)			—
Prior Years Catastrophe Losses and LAE Ratio	0.4			1.1			(1.2)			(5.8)			(22.1)			(1.6)			1.7			0.1			(7.4)
Total Incurred Loss and LAE Ratio	161.6			78.1			49.6			58.3			48.9			85.7			82.1			95.9			72.1
Insurance Expense Ratio	33.1			33.5			34.3			33.4			32.2			32.4			32.5			33.6			32.4
Combined Ratio	194.7		%	111.6		%	83.9		%	91.7		%	81.1		%	118.1		%	114.6		%	129.5		%	104.5		%
Underlying Combined Ratio 1
Current Year Non-catastrophe Losses and LAE Ratio	51.1		%	45.7		%	50.5		%	51.2		%	55.6		%	51.9		%	59.3		%	49.1		%	55.6		%
Insurance Expense Ratio	33.1			33.5			34.3			33.4			32.2			32.4			32.5			33.6			32.4
Underlying Combined Ratio	84.2		%	79.2		%	84.8		%	84.6		%	87.8		%	84.3		%	91.8		%	82.7		%	88.0		%
Non-GAAP Measure Reconciliation
Combined Ratio	194.7		%	111.6		%	83.9		%	91.7		%	81.1		%	118.1		%	114.6		%	129.5		%	104.5		%
Less:
Current Year Catastrophe Losses and LAE Ratio	106.5			32.7			7.9			17.5			15.1			33.9			22.9			48.6			23.9
Prior Years Non-catastrophe Losses and LAE Ratio	3.6			(1.4)			(7.6)			(4.6)			0.3			1.5			(1.8)			(1.9)			—
Prior Years Catastrophe Losses and LAE Ratio	0.4			1.1			(1.2)			(5.8)			(22.1)			(1.6)			1.7			0.1			(7.4)
Underlying Combined Ratio	84.2		%	79.2		%	84.8		%	84.6		%	87.8		%	84.3		%	91.8		%	82.7		%	88.0		%
1 Underlying Combined Ratio is a non-GAAP measure, which is computed as the difference between three operating ratios: the combined ratio, the effect of catastrophes (excluding development of prior-year catastrophes) on the combined ratio and the effect of prior-year reserve development at the reporting date (including development on prior-year catastrophes) on the combined ratio.

Kemper Corporation

Preferred Property & Casualty Insurance Segment

Other Personal Insurance - Results of Operations and Selected Financial Information

(Dollars in Millions)

(Unaudited)

	Three Months Ended																					Nine Months Ended
	Sep 30,<br>2020			Jun 30,<br>2020			Mar 31,<br>2020			Dec 31,<br>2019			Sep 30,<br>2019			Jun 30,<br>2019			Mar 31,<br>2019			Sep 30,<br>2020			Sep 30,<br>2019
Results of Operations
Net Premiums Written	$	9.3		$	8.7		$	8.3		$	8.6		$	9.8		$	9.9		$	9.0		$	26.3		$	28.7
Earned Premiums	$	8.9		$	8.9		$	9.2		$	9.3		$	9.8		$	9.8		$	9.9		$	27.0		$	29.5
Net Investment Income	0.4			0.2			0.3			0.9			0.9			0.9			0.6			0.9			2.4
Total Revenues	9.3			9.1			9.5			10.2			10.7			10.7			10.5			27.9			31.9
Incurred Losses and LAE related to:
Current Year:
Non-catastrophe Losses and LAE	2.5			3.3			3.9			4.0			4.3			4.6			4.8			9.7			13.7
Catastrophe Losses and LAE	1.5			0.4			0.1			0.1			0.5			0.3			0.3			2.0			1.1
Prior Years:
Non-catastrophe Losses and LAE	(1.6)			(0.7)			(1.2)			(1.6)			(0.8)			(1.5)			(2.8)			(3.5)			(5.1)
Catastrophe Losses and LAE	0.1			0.1			(0.3)			0.1			(1.7)			0.1			0.1			(0.1)			(1.5)
Total Incurred Losses and LAE	2.5			3.1			2.5			2.6			2.3			3.5			2.4			8.1			8.2
Insurance Expenses	2.6			2.9			3.1			2.8			2.8			2.7			2.7			8.6			8.2
Operating Profit	4.2			3.1			3.9			4.8			5.6			4.5			5.4			11.2			15.5
Income Tax Expense	(0.9)			(0.6)			(0.8)			(1.0)			(1.2)			(0.9)			(1.1)			(2.3)			(3.2)
Total Product Line Net Operating Income	$	3.3		$	2.5		$	3.1		$	3.8		$	4.4		$	3.6		$	4.3		$	8.9		$	12.3
Ratios Based On Earned Premiums
Current Year Non-catastrophe Losses and LAE Ratio	28.1		%	37.1		%	42.4		%	43.0		%	43.9		%	46.9		%	48.5		%	36.0		%	46.5		%
Current Year Catastrophe Losses and LAE Ratio	16.9			4.5			1.1			1.1			5.1			3.1			3.0			7.4			3.7
Prior Years Non-catastrophe Losses and LAE Ratio	(18.0)			(7.9)			(13.0)			(17.2)			(8.2)			(15.3)			(28.3)			(13.0)			(17.3)
Prior Years Catastrophe Losses and LAE Ratio	1.1			1.1			(3.3)			1.1			(17.3)			1.0			1.0			(0.4)			(5.1)
Total Incurred Loss and LAE Ratio	28.1			34.8			27.2			28.0			23.5			35.7			24.2			30.0			27.8
Insurance Expense Ratio	29.2			32.6			33.7			30.1			28.6			27.6			27.3			31.9			27.8
Combined Ratio	57.3		%	67.4		%	60.9		%	58.1		%	52.1		%	63.3		%	51.5		%	61.9		%	55.6		%
Underlying Combined Ratio 1
Current Year Non-catastrophe Losses and LAE Ratio	28.1		%	37.1		%	42.4		%	43.0		%	43.9		%	46.9		%	48.5		%	36.0		%	46.5		%
Insurance Expense Ratio	29.2			32.6			33.7			30.1			28.6			27.6			27.3			31.9			27.8
Underlying Combined Ratio	57.3		%	69.7		%	76.1		%	73.1		%	72.5		%	74.5		%	75.8		%	67.9		%	74.3		%
Non-GAAP Measure Reconciliation
Combined Ratio	57.3		%	67.4		%	60.9		%	58.1		%	52.1		%	63.3		%	51.5		%	61.9		%	55.6		%
Less:
Current Year Catastrophe Losses and LAE Ratio	16.9			4.5			1.1			1.1			5.1			3.1			3.0			7.4			3.7
Prior Years Non-catastrophe Losses and LAE Ratio	(18.0)			(7.9)			(13.0)			(17.2)			(8.2)			(15.3)			(28.3)			(13.0)			(17.3)
Prior Years Catastrophe Losses and LAE Ratio	1.1			1.1			(3.3)			1.1			(17.3)			1.0			1.0			(0.4)			(5.1)
Underlying Combined Ratio	57.3		%	69.7		%	76.1		%	73.1		%	72.5		%	74.5		%	75.8		%	67.9		%	74.3		%
1 Underlying Combined Ratio is a non-GAAP measure, which is computed as the difference between three operating ratios: the combined ratio, the effect of catastrophes (excluding development of prior-year catastrophes) on the combined ratio and the effect of prior-year reserve development at the reporting date (including development on prior-year catastrophes) on the combined ratio.

Kemper Corporation

Life & Health Insurance Segment

Results of Operations and Selected Financial Information

(Dollars in Millions)

(Unaudited)

	Three Months Ended														Nine Months Ended
	Sep 30,<br>2020		Jun 30,<br>2020		Mar 31,<br>2020		Dec 31,<br>2019		Sep 30,<br>2019		Jun 30,<br>2019		Mar 31,<br>2019		Sep 30,<br>2020		Sep 30,<br>2019
Results of Operations
Earned Premiums	$	160.6	$	162.7	$	163.0	$	160.9	$	160.8	$	162.1	$	159.9	$	486.3	$	482.8
Net Investment Income	50.7		44.3		51.0		52.0		49.7		53.0		51.7		146.0		154.4
Other Income	—		0.5		0.1		2.9		2.9		1.6		1.1		0.6		5.6
Total Revenues	211.3		207.5		214.1		215.8		213.4		216.7		212.7		632.9		642.8
Policyholders’ Benefits and Incurred Losses and LAE	113.6		105.9		100.7		95.0		88.8		113.5		105.4		320.2		307.7
Insurance Expenses	82.5		81.7		86.9		85.3		83.6		87.1		78.0		251.1		248.7
Operating Profit	15.2		19.9		26.5		35.5		41.0		16.1		29.3		61.6		86.4
Income Tax Expense	(3.0)		(3.8)		(4.2)		(6.6)		(7.6)		(2.8)		(6.2)		(11.0)		(16.6)
Segment Net Operating Income	$	12.2	$	16.1	$	22.3	$	28.9	$	33.4	$	13.3	$	23.1	$	50.6	$	69.8
	Sep 30, 2020		Jun 30, 2020		Mar 31,<br>2020		Dec 31,<br>2019		Sep 30,<br>2019		Jun 30,<br>2019		Mar 31,<br>2019
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
Insurance Reserves:
Future Policyholder Benefits	$	3,426.4	$	3,407.0	$	3,397.1	$	3,385.3	$	3,374.6	$	3,362.6	$	3,346.1
Incurred Losses and LAE Reserves:
Life	59.0		61.6		75.5		89.2		97.0		121.4		127.0
Accident and Health	26.1		29.1		28.2		27.5		28.1		30.2		28.6
Property	5.1		3.8		3.1		3.3		3.5		4.2		3.6
Total Incurred Losses and LAE Reserves	90.2		94.5		106.8		120.0		128.6		155.8		159.2
Insurance Reserves	$	3,516.6	$	3,501.5	$	3,503.9	$	3,505.3	$	3,503.2	$	3,518.4	$	3,505.3

Kemper Corporation

Life & Health Insurance Segment

Life Insurance - Results of Operations and Selected Financial Information

(Dollars in Millions)

(Unaudited)

	Three Months Ended														Nine Months Ended
	Sep 30,<br>2020		Jun 30,<br>2020		Mar 31,<br>2020		Dec 31,<br>2019		Sep 30,<br>2019		Jun 30,<br>2019		Mar 31,<br>2019		Sep 30,<br>2020		Sep 30,<br>2019
Results of Operations
Earned Premiums	$	96.3	$	95.7	$	97.2	$	95.6	$	96.2	$	97.0	$	95.8	$	289.2	$	289.0
Net Investment Income	47.5		44.8		48.7		50.1		47.8		51.0		49.9		141.0		148.7
Other Income	—		0.1		—		2.7		2.8		1.6		1.0		0.1		5.4
Total Revenues	143.8		140.6		145.9		148.4		146.8		149.6		146.7		430.3		443.1
Policyholders’ Benefits and Incurred Losses and LAE	84.0		76.7		68.1		$	65.4	56.0		75.9		72.8		228.8		204.7
Insurance Expenses	54.7		50.9		60.3		55.4		53.3		56.7		49.9		165.9		159.9
Operating Profit	5.1		13.0		17.5		27.6		37.5		17.0		24.0		35.6		78.5
Income Tax Expense	(0.8)		(2.4)		(2.3)		(4.9)		(7.0)		(3.0)		(5.1)		(5.5)		(15.1)
Total Product Line Operating Income	$	4.3	$	10.6	$	15.2	$	22.7	$	30.5	$	14.0	$	18.9	$	30.1	$	63.4

Kemper Corporation

Life & Health Insurance Segment

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

(Dollars in Millions)

(Unaudited)

	Three Months Ended														Nine Months Ended
	Sep 30,<br>2020		Jun 30,<br>2020		Mar 31,<br>2020		Dec 31,<br>2019		Sep 30,<br>2019		Jun 30,<br>2019		Mar 31,<br>2019		Sep 30,<br>2020		Sep 30,<br>2019
Results of Operations
Earned Premiums	$	48.9	$	50.8	$	49.4	$	48.5	$	47.6	$	47.9	$	46.9	$	149.1	$	142.4
Net Investment Income	3.1		(0.4)		2.0		1.5		1.5		1.5		1.5		4.7		4.5
Other Income	—		0.4		0.1		0.2		0.1		—		0.1		0.5		0.2
Total Revenues	52.0		50.8		51.5		50.2		49.2		49.4		48.5		154.3		147.1
Policyholders’ Benefits and Incurred Losses and LAE	20.7		22.0		28.1		25.3		27.6		30.6		26.3		70.8		84.5
Insurance Expenses	22.1		24.6		20.1		22.8		22.7		22.4		20.8		66.8		65.9
Operating Profit (Loss)	9.2		4.2		3.3		2.1		(1.1)		(3.6)		1.4		16.7		(3.3)
Income Tax Benefit (Expense)	(2.0)		(0.9)		(0.7)		(0.5)		0.3		0.8		(0.3)		(3.6)		0.8
Total Product Line Net Operating Income (Loss)	$	7.2	$	3.3	$	2.6	$	1.6	$	(0.8)	$	(2.8)	$	1.1	$	13.1	$	(2.5)

Kemper Corporation

Life & Health Insurance Segment

Property Insurance - Results of Operations and Selected Financial Information

(Dollars in Millions)

(Unaudited)

	Three Months Ended																					Nine Months Ended
	Sep 30,<br>2020			Jun 30,<br>2020			Mar 31,<br>2020			Dec 31,<br>2019			Sep 30,<br>2019			Jun 30,<br>2019			Mar 31,<br>2019			Sep 30,<br>2020			Sep 30,<br>2019
Results of Operations
Earned Premiums	$	15.4		$	16.2		$	16.4		$	16.8		$	17.0		$	17.2		$	17.2		$	48.0		$	51.4
Net Investment Income	0.1			(0.1)			0.3			0.4			0.4			0.5			0.3			0.3			1.2
Total Revenues	15.5			16.1			16.7			17.2			17.4			17.7			17.5			48.3			52.6
Incurred Losses and LAE related to:
Current Year:
Non-catastrophe Losses and LAE	5.2			3.5			4.0			3.8			4.5			4.7			5.1			12.7			14.3
Catastrophe Losses and LAE	3.1			3.2			0.8			0.5			0.5			1.8			0.3			7.1			2.6
Prior Years:
Non-catastrophe Losses and LAE	0.4			0.3			(0.4)			(0.1)			0.1			0.2			0.6			0.3			0.9
Catastrophe Losses and LAE	0.2			0.2			0.1			0.1			0.1			0.3			0.3			0.5			0.7
Total Incurred Losses and LAE	8.9			7.2			4.5			4.3			5.2			7.0			6.3			20.6			18.5
Insurance Expenses	5.7			6.2			6.5			7.1			7.6			8.0			7.3			18.4			22.9
Operating Profit	0.9			2.7			5.7			5.8			4.6			2.7			3.9			9.3			11.2
Income Tax Expense	(0.2)			(0.5)			(1.2)			(1.2)			(0.9)			(0.6)			(0.8)			(1.9)			(2.3)
Total Product Line Net Operating Income	$	0.7		$	2.2		$	4.5		$	4.6		$	3.7		$	2.1		$	3.1		$	7.4		$	8.9
Ratios Based On Earned Premiums
Current Year Non-catastrophe Losses and LAE Ratio	33.8		%	21.5		%	24.3		%	22.6		%	26.5		%	27.3		%	29.7		%	26.5		%	27.7		%
Current Year Catastrophe Losses and LAE Ratio	20.1			19.8			4.9			3.0			2.9			10.5			1.7			14.8			5.1
Prior Years Non-catastrophe Losses and LAE Ratio	2.6			1.9			(2.4)			(0.6)			0.6			1.2			3.5			0.6			1.8
Prior Years Catastrophe Losses and LAE Ratio	1.3			1.2			0.6			0.6			0.6			1.7			1.7			1.0			1.4
Total Incurred Loss and LAE Ratio	57.8			44.4			27.4			25.6			30.6			40.7			36.6			42.9			36.0
Insurance Expense Ratio	37.0			38.3			39.6			42.3			44.7			46.5			42.4			38.3			44.6
Combined Ratio	94.8		%	82.7		%	67.0		%	67.9		%	75.3		%	87.2		%	79.0		%	81.2		%	80.6		%
Underlying Combined Ratio 1
Current Year Non-catastrophe Losses and LAE Ratio	33.8		%	21.5		%	24.3		%	22.6		%	26.5		%	27.3		%	29.7		%	26.5		%	27.7		%
Insurance Expense Ratio	37.0			38.3			39.6			42.3			44.7			46.5			42.4			38.3			44.6
Underlying Combined Ratio	70.8		%	59.8		%	63.9		%	64.9		%	71.2		%	73.8		%	72.1		%	64.8		%	72.3		%
Non-GAAP Measure Reconciliation
Combined Ratio	94.8		%	82.7		%	67.0		%	67.9		%	75.3		%	87.2		%	79.0		%	81.2		%	80.6		%
Less:
Current Year Catastrophe Losses and LAE Ratio	20.1			19.8			4.9			3.0			2.9			10.5			1.7			14.8			5.1
Prior Years Non-catastrophe Losses and LAE Ratio	2.6			1.9			(2.4)			(0.6)			0.6			1.2			3.5			0.6			1.8
Prior Years Catastrophe Losses and LAE Ratio	1.3			1.2			0.6			0.6			0.6			1.7			1.7			1.0			1.4
Underlying Combined Ratio	70.8		%	59.8		%	63.9		%	64.9		%	71.2		%	73.8		%	72.1		%	64.8		%	72.3		%
1 Underlying Combined Ratio is a non-GAAP measure, which is computed as the difference between three operating ratios: the combined ratio, the effect of catastrophes (excluding development of prior-year catastrophes) on the combined ratio and the effect of prior-year reserve development at the reporting date (including development on prior-year catastrophes) on the combined ratio.

Kemper Corporation

Expenses

(Dollars in Millions)

	Three Months Ended														Nine Months Ended
	Sep 30,<br>2020		Jun 30,<br>2020		Mar 31,<br>2020		Dec 31,<br>2019		Sep 30,<br>2019		Jun 30,<br>2019		Mar 31,<br>2019		Sep 30,<br>2020		Sep 30,<br>2019
Insurance Expenses:
Commissions	$	195.5	$	178.2	$	188.8	$	172.7	$	178.3	$	183.8	$	174.0	$	562.5	$	536.1
General Expenses	74.6		79.2		70.5		70.4		69.8		74.9		62.9		224.3		207.6
Premium Taxes	23.3		23.1		24.8		22.0		21.8		25.0		24.7		71.2		71.5
Total Costs Incurred	293.4		280.5		284.1		265.1		269.9		283.7		261.6		858.0		815.2
Net Policy Acquisition Costs Deferred	(17.4)		(9.3)		(13.8)		(1.0)		(15.2)		(21.7)		(29.0)		(40.5)		(65.9)
Amortization of Valuation of Business Acquired ("VOBA")	0.9		1.5		1.3		1.3		1.3		1.5		2.2		3.7		5.0
Insurance Expenses	276.9		272.7		271.6		265.4		256.0		263.5		234.8		821.2		754.3
Loss from Early Extinguishment of Debt	—		—		—		—		5.8		—		—		—		5.8
Interest and Other Expenses:
Interest Expense	8.3		8.9		7.5		10.0		9.2		11.8		11.5		24.7		32.5
Other Expenses:
Acquisition Related Transaction, Integration and Other Costs	14.4		17.1		11.8		6.2		5.4		1.2		5.6		43.3		12.2
Other	24.5		25.0		25.2		30.3		23.3		25.0		24.3		74.7		72.6
Other Expenses	38.9		42.1		37.0		36.5		28.7		26.2		29.9		118.0		84.8
Interest and Other Expenses	47.2		51.0		44.5		46.5		37.9		38.0		41.4		142.7		117.3
Total Expenses	$	324.1	$	323.7	$	316.1	$	311.9	$	299.7	$	301.5	$	276.2	$	963.9	$	877.4

Kemper Corporation

Details of Investment Performance

(Dollars in Millions)

	Three Months Ended														Nine Months Ended
	Sep 30,<br>2020		Jun 30,<br>2020		Mar 31,<br>2020		Dec 31,<br>2019		Sep 30,<br>2019		Jun 30,<br>2019		Mar 31,<br>2019		Sep 30,<br>2020		Sep 30,<br>2019
Net Investment Income
Interest on Fixed Income Securities	$	72.7	$	74.3	$	71.0	$	73.9	$	73.5	$	75.6	$	76.4	$	218.0	$	225.5
Dividends on Equity Securities Excluding Alternative Investments	2.8		3.6		4.3		8.3		5.2		6.9		2.5		10.7		14.6
Alternative Investments:
Equity Method Limited Liability Investments	8.2		(12.7)		1.8		0.4		1.6		2.6		(3.6)		(2.7)		0.6
Limited Liability Investments Included in Equity Securities	2.4		1.1		3.8		5.1		5.2		5.1		2.6		7.3		12.9
Total Alternative Investments	10.6		(11.6)		5.6		5.5		6.8		7.7		(1.0)		4.6		13.5
Short-term Investments	2.3		0.3		1.6		1.3		2.5		2.6		1.8		4.2		6.9
Loans to Policyholders	5.5		5.5		5.6		5.7		5.9		5.7		5.3		16.6		16.9
Real Estate	2.3		2.3		2.5		2.7		2.4		2.2		2.5		7.1		7.1
Other	2.7		2.4		4.2		0.6		0.6		0.3		—		9.3		0.9
Total Investment Income	98.9		76.8		94.8		98.0		96.9		101.0		87.5		270.5		285.4
Investment Expenses:
Real Estate	1.2		2.7		2.6		2.4		2.5		2.3		2.4		6.5		7.2
Other Investment Expenses	5.6		6.3		6.6		1.7		2.7		2.7		2.4		18.5		7.8
Total Investment Expenses	6.8		9.0		9.2		4.1		5.2		5.0		4.8		25.0		15.0
Net Investment Income	$	92.1	$	67.8	$	85.6	$	93.9	$	91.7	$	96.0	$	82.7	$	245.5	$	270.4
Net Realized Gains (Losses) on Sales of Investments
Fixed Maturities:
Gains on Sales	$	11.9	$	10.9	$	15.9	$	1.4	$	1.9	$	22.7	$	15.1	$	38.7	$	39.7
Losses on Sales	(1.9)		(0.5)		(1.1)		—		(0.3)		(1.9)		(2.6)		(3.5)		(4.8)
Equity Securities:
Gains on Sales	0.1		0.1		1.3		1.3		0.2		0.7		3.6		1.5		4.5
Losses on Sales	—		—		(0.2)		0.1		(0.1)		(0.2)		—		(0.2)		(0.3)
Equity Method Limited Liability Investments:
Losses on Sales	(0.1)		—		—		—		—		—		—		(0.1)		—
Real Estate:
Gains on Sales	—		1.2		0.6		—		—		—		—		1.8		—
Net Realized Gains on Sales of Investments	$	10.0	$	11.7	$	16.5	$	2.8	$	1.7	$	21.3	$	16.1	$	38.2	$	39.1
Net Impairment Losses Recognized in Earnings
Fixed Maturities	$	(1.0)	$	(7.0)	$	(10.0)	$	(1.7)	$	(1.7)	$	(6.3)	$	(3.6)	$	(18.0)	$	(11.6)
Equity Securities	—		—		(2.0)		—		(0.1)		(0.4)		—		(2.0)		(0.5)
Net Impairment Losses Recognized in Earnings	$	(1.0)	$	(7.0)	$	(12.0)	$	(1.7)	$	(1.8)	$	(6.7)	$	(3.6)	$	(20.0)	$	(12.1)

Kemper Corporation

Details of Invested Assets

(Dollars in Millions)

(Unaudited)

	Sep 30, 2020				Dec 31, 2019				Dec 31, 2018
	Carrying<br>Value		Percent<br><br>of Total1		Carrying<br>Value		Percent<br><br>of Total1		Carrying<br>Value		Percent<br><br>of Total1
Fixed Maturities Reported at Fair Value:
U.S. Government and Government Agencies and Authorities	$	652.8	6.5	%	$	815.9	8.8	%	$	865.7	10.6	%
States and Political Subdivisions	1,511.6		15.2		1,515.8		16.4		1,619.1		19.9
Foreign Governments	4.9		—		16.8		0.2		5.9		0.1
Corporate Securities:
Bonds and Notes	4,375.7		43.9		3,859.7		41.7		3,393.8		41.8
Redeemable Preferred Stocks	7.3		0.1		6.7		0.1		—		—
Collaterized Loan Obligations	727.4		7.3		618.2		6.7		524.0		6.4
Other Mortgage- and Asset-backed	225.1		2.3		89.0		1.0		15.7		0.2
Total Fixed Maturities Reported at Fair Value	7,504.8		75.3		6,922.1		74.7		6,424.2		79.0
Equity Securities Reported at Fair Value:
Preferred Stocks	56.8		0.6		59.2		0.6		54.2		0.7
Common Stocks	10.1		0.1		13.2		0.1		10.9		0.1
Other Equity Interests:
Exchange Traded Funds	434.5		4.4		586.8		6.3		427.3		5.3
Limited Liability Companies and Limited Partnerships	286.8		2.9		248.1		2.7		192.0		2.4
Total Equity Securities Reported at Fair Value	788.2		7.9		907.3		9.8		684.4		8.5
Equity Securities Reported at Modified Cost:
Preferred Stocks	9.2		0.1		9.1		0.1		9.2		0.1
Common Stocks	18.7		0.2		12.3		0.1		8.8		0.1
Limited Liability Companies and Limited Partnerships	20.5		0.2		20.5		0.2		23.5		0.3
Total Equity Securities Reported at Modified Cost	48.4		0.5		41.9		0.4		41.5		0.5
Convertible Securities at Fair Value	36.3		0.4		37.3		0.4		31.5		0.4
Equity Method Limited Liability Investments	206.2		2.1		220.4		2.4		187.0		2.3
Short-term Investments at Cost which Approximates Fair Value	628.8		6.3		470.9		5.1		286.1		3.5
Other Investments:
Company Owned Life Insurance	326.1		3.3		217.0		2.3		59.3		0.7
Loans to Policyholders at Unpaid Principal	299.5		3.0		305.6		3.3		300.6		3.7
Real Estate at Depreciated Cost	99.6		1.0		111.4		1.2		114.2		1.4
Mortgage Loans	37.3		0.4		27.5		0.3		—		—
Other	0.3		—		—		—		—		—
Total Other Investments	762.8		7.7		661.5		7.1		474.1		5.8
Total Investments	$	9,975.5	100.0	%	$	9,261.4	100.0	%	$	8,128.8	100.0	%
1 Sum of percentages for individual lines may not equal subtotals and grand total due to rounding.

Kemper Corporation

Details of Invested Assets (continued)

(Dollars in Millions)

(Unaudited)

	Sep 30, 2020				Dec 31, 2019				Dec 31, 2018
	Carrying<br>Value		Percent<br><br>of Total1		Carrying<br>Value		Percent<br><br>of Total1		Carrying<br>Value		Percent<br><br>of Total1
S&P Equivalent Rating for Fixed Maturities
AAA, AA, A	$	4,701.7	62.6	%	$	4,387.1	63.4	%	$	4,156.6	64.7	%
BBB	2,278.7		30.4		2,044.1		29.5		1,752.6		27.3
BB, B	334.8		4.5		319.2		4.6		333.7		5.2
CCC or Lower	189.6		2.5		171.7		2.5		181.3		2.8
Total Investments in Fixed Maturities	$	7,504.8	100.1	%	$	6,922.1	100.0	%	$	6,424.2	100.0	%
Duration (in Years)
Total Investments in Fixed Maturities	7.6				7.1				6.2
1 Sum of percentages for individual lines may not equal subtotals and grand total due to rounding.

Kemper Corporation

Investment Concentration

(Dollars in Millions)

(Unaudited)

	Sep 30, 2020				Dec 31, 2019				Dec 31, 2018
Fair Value of Non-governmental Fixed Maturities by Industry	Amount		Percent<br>of Total<br>Investments		Amount		Percent<br>of Total<br>Investments		Amount		Percent<br>of Total<br>Investments
Finance, Insurance and Real Estate	$	1,839.7	18.4	%	$	1,522.8	16.4	%	$	1,269.3	15.6	%
Manufacturing	1,601.2		16.1		1,356.4		14.6		1,270.0		15.6
Transportation, Communication and Utilities	796.6		8.0		650.2		7.0		449.0		5.5
Services	602.7		6.0		604.4		6.5		516.4		6.4
Mining	273.3		2.7		154.5		1.7		158.6		2.0
Retail Trade	207.4		2.1		183.3		2.0		164.8		2.0
Wholesale Trade	0.6		—		72.9		0.8		78.4		1.0
Agriculture, Forestry and Fishing	—		—		12.4		0.1		13.7		0.2
Other	14.0		0.1		16.6		0.2		13.3		0.2
Total Fair Value of Non-governmental Fixed Maturities	$	5,335.5	53.4	%	$	4,573.5	49.3	%	$	3,933.5	48.5	%
	Sep 30, 2020
---	---	---	---	---
Ten Largest Investment Exposures 1	Fair<br>Value		Percent<br>of Total<br>Investments
Fixed Maturities:
States including their Political Subdivisions:
Texas	$	134.3	1.3	%
Georgia	100.6		1.0
Colorado	94.8		1.0
New York	76.0		0.8
Louisiana	70.9		0.7
California	68.4		0.7
Michigan	68.3		0.7
Ohio	55.7		0.6
Equity Securities at Fair Value—Other Equity Interests:
Vanguard Total World Stock ETF	170.3		1.7
iShares® Core MSCI Total International Stock ETF	66.3		0.7
Total	$	905.6	9.2	%

1Excluding Investments in U.S. Government and Government Agencies and Authorities at September 30, 2020.

Kemper Corporation

Municipal Bond Securities

(Dollars in Millions)

(Unaudited)

	Sep 30, 2020
	State<br>General<br>Obligation		Political<br>Subdivision<br>General<br>Obligation		Revenue		Total Fair<br>Value		Percent<br><br>of Total<br><br>Muni Bond1		Percent<br><br>of Total<br><br>Investments1
Texas	$	10.4	$	10.9	$	113.0	$	134.3	8.9	%	1.3	%
Georgia	47.0		6.1		47.6		100.7		6.7		1.0
Colorado	—		11.1		83.7		94.8		6.3		1.0
New York	6.8		9.0		60.2		76.0		5.0		0.8
Louisiana	40.8		5.4		24.8		71.0		4.7		0.7
California	7.1		1.1		60.1		68.3		4.5		0.7
Michigan	40.4		—		27.9		68.3		4.5		0.7
Ohio	6.7		—		49.0		55.7		3.7		0.6
Washington	15.7		—		38.9		54.6		3.6		0.5
Pennsylvania	6.3		2.6		33.7		42.6		2.8		0.4
Virginia	7.1		17.8		17.0		41.9		2.8		0.4
Florida	5.1		—		36.8		41.9		2.8		0.4
Oregon	34.7		—		4.3		39.0		2.6		0.4
Utah	0.6		—		35.1		35.7		2.4		0.4
Minnesota	—		—		34.7		34.7		2.3		0.3
Massachusetts	2.7		1.5		28.8		33.0		2.2		0.3
District Of Columbia	4.7		—		28.3		33.0		2.2		0.3
New Mexico	—		—		32.4		32.4		2.1		0.3
Indiana	—		—		29.2		29.2		1.9		0.3
South Carolina	17.3		1.8		10.9		30.0		2.0		0.3
Illinois	—		—		29.3		29.3		1.9		0.3
Missouri	—		—		26.5		26.5		1.8		0.3
Tennessee	3.6		8.8		10.3		22.7		1.5		0.2
Maryland	2.2		8.7		11.0		21.9		1.4		0.2
Nebraska	—		8.6		12.5		21.1		1.4		0.2
Hawaii	20.8		0.3		—		21.1		1.4		0.2
Arkansas	19.3		—		—		19.3		1.3		0.2
Kentucky	—		—		19.0		19.0		1.3		0.2
New Jersey	—		—		16.6		16.6		1.1		0.2
Mississippi	13.7		—		2.6		16.3		1.1		0.2
Alabama	—		—		16.0		16.0		1.1		0.2
Alaska	2.0		3.0		10.3		15.3		1.0		0.2
Wisconsin	—		7.4		7.6		15.0		1.0		0.2
Connecticut	14.0		—		—		14.0		0.9		0.1
Arizona	—		0.8		12.8		13.6		0.9		0.1
Idaho	—		—		11.7		11.7		0.8		0.1
Oklahoma	—		—		11.7		11.7		0.8		0.1
Rhode Island	—		—		11.3		11.3		0.7		0.1
Iowa	—		—		10.2		10.2		0.7		0.1
All Other States	4.6		7.3		50.1		62.0		4.1		0.6
Total	$	333.6	$	112.2	$	1,065.9	$	1,511.7	100.0	%	15.2	%
1 Sum of percentages for individual lines may not equal total due to rounding.

Kemper Corporation

Investments in Limited Liability

Companies and Limited Partnerships

(Dollars in Millions)

(Unaudited)

	Unfunded<br>Commitment		Reported Value
Asset Class	Sep 30,<br>2020		Sep 30,<br>2020		Dec 31,<br>2019
Reported as Equity Method Limited Liability Investments at Cost Plus Cumulative Undistributed Earnings:
Mezzanine Debt	$	64.0	$	124.0	$	129.3
Senior Debt	19.2		10.3		16.0
Distressed Debt	—		13.4		22.7
Secondary Transactions	13.2		11.7		11.5
Leveraged Buyout	—		—		0.1
Growth Equity	—		4.3		5.3
Real Estate	—		30.5		29.9
Other	0.1		11.9		5.6
Total Equity Method Limited Liability Investments	96.5		206.1		220.4
Reported as Other Equity Interests at Fair Value:
Mezzanine Debt	87.5		141.7		126.1
Senior Debt	20.1		36.2		39.5
Distressed Debt	18.6		20.8		16.8
Secondary Transactions	6.3		4.0		4.9
Hedge Funds	—		69.9		48.2
Leveraged Buyout	1.9		4.4		4.4
Other	6.2		9.8		8.2
Total Reported as Other Equity Interests at Fair Value	140.6		286.8		248.1
Reported as Other Equity Interests at Modified Cost:
Mezzanine Debt	0.1		2.3		1.6
Other	—		18.2		18.9
Total Reported as Other Equity Interests at Modified Cost	0.1		20.5		20.5
Total Investments in Limited Liability Companies and Limited Partnerships	$	237.2	$	513.4	$	489.0

Kemper Corporation

Definitions of Non-GAAP Financial Measures

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

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

Book Value Per Share Excluding Net Unrealized Gains on Fixed Maturities is a calculation that uses a non-GAAP financial measure. It is calculated by dividing shareholders’ equity after excluding the after-tax impact of net unrealized gains on fixed income securities by total Common Shares Issued and Outstanding. Book value per share is the most directly comparable GAAP financial measure. The Company uses the trends in book value per share excluding the after-tax impact of net unrealized gains on fixed income securities in conjunction with book value per share to identify and analyze the change in net worth attributable to management efforts between periods. The Company believes the non-GAAP financial measure is useful to investors because it eliminates the effect of items that can fluctuate significantly from period to period and are generally driven by economic developments, primarily capital market conditions, the magnitude and timing of which are not influenced by management. The Company believes it enhances understanding and comparability of performance by highlighting underlying business activity and profitability drivers.

Book Value Per Share Excluding Net Unrealized Gains on Fixed Maturities and Goodwill is a calculation that uses a non-GAAP financial measure. It is calculated by dividing shareholders’ equity after excluding the after-tax impact of net unrealized gains on fixed income securities and goodwill by total Common Shares Issued and Outstanding. Book value per share is the most directly comparable GAAP financial measure. The Company uses the trends in book value per share excluding the after-tax impact of net unrealized gains on fixed income securities and goodwill in conjunction with book value per share to identify and analyze the change in net worth excluding goodwill attributable to management efforts between periods. The Company believes the non-GAAP financial measure is useful to investors because it eliminates the effect of items that can fluctuate significantly from period to period and are generally driven by economic developments, primarily capital market conditions, the magnitude and timing of which are not influenced by management. The Company believes it enhances understanding and comparability of performance by highlighting underlying business activity and profitability drivers.

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

1) Net Realized Gains on Sales of Investments;

2) Impairment Losses;

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

4) Acquisition Related Transaction, Integration and Other Costs;

5) Loss from Early Extinguishment of Debt; and

6) 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).

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. Net Realized Gains on Sales of Investments, Impairment Losses related to investments, and Income (Loss) from Change in Fair Value of Equity and Convertible Securities included in the Company’s results may vary significantly between periods and are generally driven by business decisions and external economic developments such as capital market conditions that impact the values of the Company’s investments, the timing of which is unrelated to the insurance underwriting process. Acquisition Related Transaction, Integration 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. Loss from Early Extinguishment of Debt 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. Significant non-recurring items are excluded because, by their nature, they are not indicative of the Company’s business or economic trends.

Kemper Corporation

Definitions of Non-GAAP Financial Measures (continued)

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

	Three Months Ended														Nine Months Ended
Dollars in Millions (Unaudited)	Sep 30,<br>2020		Jun 30,<br>2020		Mar 31,<br>2020		Dec 31,<br>2019		Sep 30,<br>2019		Jun 30,<br>2019		Mar 31,<br>2019		Sep 30,<br>2020		Sep 30,<br>2019
Net Income	$	122.3	$	126.1	$	64.0	$	124.7	$	129.0	$	122.1	$	155.3	$	312.4	$	406.4
Less Net Income (Loss) From:
Change in Fair Value of Equity and Convertible Securities	35.7		56.6		(93.1)		30.9		7.8		20.1		50.9		(0.8)		78.8
Net Realized Gains on Sales of Investments	7.9		9.3		13.0		2.2		1.4		16.8		12.7		30.2		30.9
Impairment Losses	(0.8)		(5.5)		(9.5)		(1.3)		(1.5)		(5.3)		(2.8)		(15.8)		(9.6)
Acquisition Related Transaction, Integration and Other Costs	(11.4)		(13.5)		(9.3)		(5.0)		(4.1)		(1.0)		(4.4)		(34.2)		(9.5)
Loss from Early Extinguishment of Debt	—		—		—		—		(4.6)		—		—		—		(4.6)
Adjusted Consolidated Net Operating Income	$	90.9	$	79.2	$	162.9	$	97.9	$	130.0	$	91.5	$	98.9	$	333.0	$	320.4

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

	Three Months Ended														Nine Months Ended
(Unaudited)	Sep 30,<br>2020		Jun 30,<br>2020		Mar 31,<br>2020		Dec 31,<br>2019		Sep 30,<br>2019		Jun 30,<br>2019		Mar 31,<br>2019		Sep 30,<br>2020		Sep 30,<br>2019
Net Income Per Unrestricted Share	$	1.87	$	1.93	$	0.96	$	1.87	$	1.93	$	1.87	$	2.38	$	4.75	$	6.17
Less Net Income (Loss) Per Unrestricted Share From:
Change in Fair Value of Equity and Convertible Securities	0.54		0.87		(1.40)		0.46		0.11		0.31		0.78		(0.01)		1.20
Net Realized Gains on Sales of Investments	0.12		0.14		0.19		0.03		0.02		0.26		0.19		0.46		0.47
Impairment Losses	(0.01)		(0.08)		(0.14)		(0.02)		(0.02)		(0.08)		(0.04)		(0.24)		(0.15)
Acquisition Related Transaction and Integration Costs	(0.17)		(0.21)		(0.14)		(0.06)		(0.06)		(0.01)		(0.07)		(0.52)		(0.14)
Loss from Early Extinguishment of Debt	—		—		—		—		(0.07)		—		—		—		(0.07)
Adjusted Consolidated Net Operating Income Per Unrestricted Share	$	1.39	$	1.21	$	2.45	$	1.46	$	1.95	$	1.39	$	1.52	$	5.06	$	4.86

Underlying Combined Ratio is a non-GAAP financial measure. It is computed by adding the Current Year Non-catastrophe Losses and LAE Ratio with the Insurance Expense Ratio. The most directly comparable GAAP financial measure is the Combined Ratio, which is computed by adding total incurred losses and LAE, including the impact of catastrophe losses and loss and LAE reserve development from prior years, with the Insurance Expense Ratio. The Company believes the underlying combined ratio is useful to investors and is used by management to reveal the trends in the Company’s property and casualty insurance businesses that may be obscured by catastrophe losses and prior-year reserve development. These catastrophe losses cause loss trends to vary significantly between periods as a result of their incidence of occurrence and magnitude, and can have a significant impact on the combined ratio. Prior-year reserve developments are caused by unexpected loss development on historical reserves. Because reserve development relates to the re-estimation of losses from earlier periods, it has no bearing on the performance of our insurance products in the current period. The Company believes it is useful for investors to evaluate these components separately and in the aggregate when reviewing the Company’s underwriting performance. The underlying combined ratio should not be considered a substitute for the combined ratio and does not reflect the overall underwriting profitability of our business.

35

a3q2020earningscallprese

Exhibit 99.3 Third Quarter 2020 Earnings November 2, 2020 Earnings Call Presentation – 3Q 2020

---

Preliminary Matters 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. Forward-looking statements give expectations or forecasts of future events and can be identified by the fact that they relate to future actions, performance or results rather than strictly to historical or current facts. Any or all forward-looking statements may turn out to be wrong, and, accordingly, readers are cautioned not to place undue reliance on such statements, which speak only as of the date of this presentation. Forward-looking statements involve a number of risks and uncertainties that are difficult to predict and are not guarantees of future performance. Among the general factors that could cause actual results and financial condition to differ materially from estimated results and financial condition are those factors listed in periodic reports filed by Kemper Corporation with the Securities and Exchange Commission (“SEC”). The COVID-19 outbreak and subsequent global pandemic (“Pandemic”) is an extraordinary event that creates unique uncertainties and risks. Kemper cannot provide any assurances as to the impacts of the Pandemic and related economic conditions on the Company’s operating and financial results. No assurances can be given that the results and financial condition contemplated in any forward-looking statements will be achieved or will be achieved in any particular timetable. Kemper assumes no obligation to publicly correct or update any forward-looking statements as a result of events or developments subsequent to the date of this presentation, including any such statements related to the Pandemic. The reader is advised, however, to consult any further disclosures Kemper makes on related subjects in its filings with the SEC. Non-GAAP Financial Measures This presentation contains non-GAAP financial measures that the company believes are meaningful to investors. Non-GAAP financial measures have been reconciled to the most comparable GAAP financial measure. Earnings Call Presentation – 3Q 2020 2

---

Create Long-Term Shareholder Value Leverage competitive advantages to grow returns and BVPS1 over time Diversified sources of earnings; Sustainable competitive Growing returns Strong capital/liquidity advantages and build and book value per positions; core capabilities share over time Disciplined approach to capital management Strategic focus: Consumer-related businesses with opportunities that: • Target niche markets • Have limited, weak or unfocused competition • Require unique expertise (underwriting, claim, distribution, analytics and other) Deliver low double-digit ROE2 over time ¹ Book value per share 2 Return on equity Earnings Call Presentation – 3Q 2020 3

---

Third Quarter 2020 Highlights Strong balance sheet and business model enable us to better serve our stakeholders Diversified model delivered double-digit ROE and solid adjusted consolidated net operating EPS • Net income of $122 million and adjusted consolidated net operating income1 of $91 million; earnings per share of $1.83, on a diluted basis; adjusted consolidated net operating EPS1 of $1.36 Shareholder • 10.8% ROAE2, 17.9% ROAE2 excluding net unrealized gains on fixed maturities and goodwill1 Value Creation • Book value per share ex. net unrealized gains on fixed maturities and goodwill1 grew 14% year-over-year • Diversified operations create sustainable earnings strength throughout economic cycles, delivering attractive returns to shareholders Results in the quarter reflect COVID trends; growth trajectory remains intact 3rd Quarter • Specialty P&C continues to produce strong top-line growth and robust earnings further enhanced by favorable frequency trends; 7.6% growth in PIF (ex. Classic Car sale) Operating • Preferred P&C absorbed catastrophe losses from multiple hurricanes and wildfires; catastrophe aggregate Performance retention level has been met • Life & Health results continue to reflect COVID-related mortality impact, in line with domestic trends Capital position provides significant financial flexibility • Debt raise; debt-to-capital ratio of 21.2%; $1.4 billion of available liquidity Financial Strength • Strong balance sheet and capital structure with no near-term debt maturities • Operating capabilities and diversified model allow us to meet the needs of our customers while delivering consistently attractive returns to shareholders ¹ Non-GAAP financial measure; please see reconciliation in appendix on pages 22-31 2 Return on average shareholders’ equity (5-point average) Earnings Call Presentation – 3Q 2020 4

---

Third Quarter Financial Highlights Steady strategy execution continues to yield robust results As Reported As Reported Quarter Ended Year-to-Date Sept 30, Sept 30, Sept 30, Sept 30, (Dollars in millions, except per share amounts) 2020 2019 2020 2019 Net Income $122 $129 $312 $406 Net Income – Per Diluted Share $1.83 $1.91 $4.67 $6.10 Adjusted Consolidated Net Operating $91 $130 $333 $320 Income1 Adj. Consolidated Net Op. Income – Per $1.36 $1.93 $4.98 $4.81 a Diluted Share1 Catastrophe Losses $67 $15 $101 $61 Tangible Book Value Per Common Share $39.60 $34.80 excluding unrealized gains1 Return on Avg. Tangible Common Equity1 17.9% 20.3% Specialty PIF growth (ex. Classic Car) 7.6% 6.9% Quarterly results impacted by increased catastrophe activity ¹ Non-GAAP financial measure; please see reconciliation in appendix on pages 22-31 Earnings Call Presentation – 3Q 2020 5

---

Review of Net Operating Income Continues to produce sound operating income Three Months Ended, As Reported Sep. 30, Jun. 30, Mar. 31, Dec. 31, Sep. 30, Variance Dollars per Unrestricted Share - Diluted 2020 2020 2020 2019 2019 QoQ Net Income $ 1.83 $ 1.91 $ 0.95 $ 1.85 $ 1.91 (0.08) (Income) Loss from Change in FV of Equity & Convertible Securities (0.53) (0.86) 1.39 (0.46) (0.11) (0.42) Investment Related (Gains)/Losses (0.12) (0.14) (0.19) (0.03) (0.02) (0.10) Net Impairment Losses 0.01 0.08 0.14 0.02 0.02 (0.01) Acquisition Related Transaction, Integration & Other Costs 0.17 0.21 0.14 0.07 0.06 0.11 Loss from Early Extinguishment of Debt - - - - 0.07 (0.07) Adj. Consolidated Net Operating Income1 1.36 1.20 2.43 1.45 1.93 (0.57) Sources of Volatility: Income (Loss) After-Tax From: Catastrophes (0.80) (0.34) (0.07) (0.19) (0.17) (0.63) - Prior-year Reserve Development (0.10) (0.22) (0.01) 0.18 0.24 (0.34) - Alternative Investment Income 0.12 (0.14) 0.07 0.07 0.08 0.04 - All Other* (0.05) - 1.03 - 0.13 (0.18) Total from Sources of Volatility $ (0.83) $ (0.70) $ 1.02 $ 0.06 $ 0.28 $ (1.11) Businesses continue to generate solid financial results ¹ Non-GAAP financial measure; see reconciliation in appendix pages 22-31 *All Other includes partial satisfaction of judgment, sale of Classic Car, refinement of CEI estimate and Earnings Call Presentation – 3Q 2020 6 impact of purchase accounting

---

Consistent Capital Generation and Attractive Returns Diversified operating and financial provides steady growth through economic cycles Total Adjusted Return of BVPS Ex. Unrealized Gains on Fixed Maturities and Goodwill Growth 50% • Strong execution and $44.41 solid operating results $42.58 $40.27 $40.70 has led to consistent $38.43 book value growth and $33.42 $36.46 $29.66 $31.21 $31.10 shareholder returns • Book value growth reflects efficient capital deployment decisions and focus on intrinsic 2016 2017 2018 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 value creation Book Value Per Share ex. Goodwill and Unrealized¹ Cumulative Dividends Per Share Paid Return on Shareholders’ Equity 24.7% • Attractive returns on 19.9% 20.3% 19.5% equity through 18.8% 17.9% 16.6% economic cycles 11.4% 16.3% • ROATCE measure 8.0% 13.3% 13.1% appropriately captures 11.4% 13.0% 12.8% 12.3% 8.3% how investors are 6.6% 1.1%0.9% compensated on tangible equity 2016 2017 2018 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 ROATCE 2 ROE ex. Unrealized Gains on Fixed Maturities 3 ¹ Non-GAAP financial measure; please see reconciliation in appendix on pages 22-31 2 Return on average tangible common equity (rolling 5 point avg.); please see reconciliation in appendix on pages 22-31 Earnings Call Presentation – 3Q 2020 7 3 Return on average shareholder’s equity excluding unrealized gains on fixed maturities (rolling 5 point avg.); please see reconciliation in appendix on pages 22-31

---

Strong Balance Sheet and Capital Position with Ample Liquidity Strong balance sheet with returns and capital generation in excess of long-term targets Parent Company Liquidity Risk-Based Capital Ratios (%) (MM) $1,439 $741 $867 $700 $684 $582 $641 415 430 410 375 330 335 355 365 335 $400 $385 $660 290 285 $385 $540 $739 310 $341 $299 $197 $101 $207 2015 2016 2017 2018 2019 3Q20 2015 2016 2017 2018 2019 3Q20E Borrowings Available Under Credit Agreement & from Subs Life & Health P&C (ex. Alliance United) HoldCo Cash & Investments Cash Flow from Operating Activities Debt-to-Capital <30% 27.4% 27.6% 21.9% 23.0% 21.2% (MM) 16.4% Debt $539 $534 $419 $215 $241 $241 2015 2016 2017 2018 2019 3Q20 2015 2016 2017 2018 2019 LTM 3Q20 Total $2.7B $4.0B $5.5B Capitalization $2.7B $2.7B $4.8B Balance sheet well positioned to meet operating capital and liquidity needs and drive continued investment in the business Earnings Call Presentation – 3Q 2020 8

---

Third Quarter Debt Offering Update Leveraged attractive market conditions to diversify our capital structure Key Highlights • Raised $400 million of 2.4% senior notes due 2030 • It was the third lowest 10-year issuance in the history of the P&C industry and second lowest BBB-rated 10-year issuance in financial sector history • +5x oversubscribed with broad universe of high quality diversified investor demand • Evidences strength of our balance sheet and business model • Returns the Company to the long-term debt-to-capital target range of 17%-22% • Extends and diversifies capital structure with debt maturities in 2022, 2025 and 2030 Potential Uses: • Emerging organic growth opportunities • Stock buy-back • Tuck-in acquisitions • 2022 debt maturity Diversifies capital structure and returns debt-to-capital ratio to long-term target range Earnings Call Presentation – 3Q 2020 9

---

High Quality & Diversified Portfolio with Consistent Returns Net Investment Income¹ Overview $95 $97 $86 $68 $92 • Net investment income and portfolio yield (MM) $7 $6 benefitted from 3Q equity market rebound $6 $11 • Investment portfolio continues to be high quality and well diversified $88 $91 $80 $80 $81 • Investment income supports long-term business objectives $(12) 3Q19 4Q19 1Q20 2Q20 3Q20 Core Portfolio Alternative Inv. Portfolio Diversified & Highly-Rated Portfolio Pre-Tax Equiv. Annualized Book Yield¹ Portfolio Composition Fixed Maturity Ratings Other ≤ CCC Alternatives Short-term B / BB Impact 4% Alternatives² 7% Corporates Equity² 5% 0.9% 5% 1% 3% 7% 30% U.S. 4.6% 4.6% 4.1% 4.2% Gov’t 54% BBB 64% 3.2% 15% States/ A or Higher Munis 3Q19 4Q19 1Q20 2Q20 3Q20 $10.0 Billion $7.5 Billion Note: Charts may not balance due to rounding ¹ Includes COLI. Please see reconciliation of COLI’s inclusion in net investment income on page 25 Earnings Call Presentation – 3Q 2020 10 2 Equity securities excludes $295 million of Other Equity Interests of LP/LLC’s that have been reclassified into Alternative Investments

---

Specialty Property & Casualty Insurance Segment1 Strong growth with solid margins Key Highlights Written Premium Population CAGR TTM YoY • 6.1% growth in policies in-force, 7.6% excluding State Groupings ($ million) Growth ’16-’19 Est. ’20-’30 Classic Car, compared to 3Q’19 California $2,052 3.8% 0.3% 0.8% • Earned premiums increased 11%, reflecting Florida / Texas $828 29.5% 1.3% 1.6% continued growth opportunities in core and Expansion States $215 33.5% 1.0% 1.1% emerging geographies Other $51 - 0.3% 0.4% Total $3,146 11.1% • Combined ratio reflects favorable short-term US 0.6% pandemic-related frequency trends Hispanic 1.6% • Long-term outlook remains intact; attractive growth opportunities at solid margins Underlying Combined Ratio¹ (%) Key Metrics Change ($ in millions) 3Q’20 to 3Q’19 Earned Premiums $871 11.2% 93.1 92.3 93.1 93.1 91.0 2 88.9 Underlying Loss & LAE Ratio 67.5% (640)bps 90.7 92.0 88.5 85.4 Underlying Expense Ratio2 17.8% 100 bps Policies In-Force (000) 1,913 6.1% 3Q19 4Q19 1Q20 2Q20 Q320 Policies In-Force ex. Classic Car (000) 1,898 7.6% QTD YTD Strength of franchise continues to create value for our stakeholders Source: Population growth sources include U.S. Census Bureau and The Association Institute ¹ As adjusted for acquisition; see reconciliation on Pages 30-31 Earnings Call Presentation – 3Q 2020 11 2 Non-GAAP financial measure; see reconciliation in appendix on pages 22-31

---

Preferred Property & Casualty Insurance Segment Ongoing efforts to bring the Preferred segment to target profitability Key Highlights • Underlying combined ratio decreased to 90.7% for the quarter; 89.3% on a year-to-date basis • Auto underlying combined ratio improved due to macro environmental frequency trends and ongoing profit improvement actions - ~$6 million of adverse development primarily related to BI and UMBI • Home & Other underlying trailing twelve months combined ratio improvement driven by underwriting, pricing, and exposure enhancements - Seasonally elevated catastrophe activity driven by wildfire and hurricane activity Underlying Combined Ratio¹ Key Metrics Change ($ in millions) 3Q’20 to 3Q’19 100.2 104.5 (%) 97.5 96.8 85.7 88.6 Auto 82.9 83.5 77.8 80.4 Earned Premiums $111 (7.6)% Policies In-Force (000) 224 (11.1)% Home & Other Earned Premiums $64 (10.4)% 3Q19 4Q19 1Q20 2Q20 3Q20 Policies In-Force (000) 201 (8.6)% Auto Home & Other Realizing benefits from ongoing profitability improvement actions ¹ Non-GAAP financial measure; please see reconciliation in appendix on pages 22-31 Earnings Call Presentation – 3Q 2020 12

---

Life & Health Insurance Segment Results impacted by COVID-related items Key Highlights • Net operating income impacted by broad macro environment: - Increased mortality experience; in-line with developing country-wide trends • Continued expectation that COVID will be an earnings, not a capital event Revenues1 Change Key Metrics $213 $216 $214 $207 $211 ($ in millions) 3Q’20 to 3Q’19 (MM) $53 $55 $51 L&H $44 $50 Net Operating Income $12 (63.5)% Life $161 $161 $163 $163 $161 Face Value of In-Force $19,776 0.4% Policies In-Force (000) 3,379 (2.9)% 3Q19 4Q19 1Q20 2Q20 3Q20 Earned Premiums Net Investment Income² Long-term underlying trends are solid; provides diversified cash flow generation Note: Chart may not balance due to rounding ¹ Excludes other income Earnings Call Presentation – 3Q 2020 13 2 Please see reconciliation of COLI’s inclusion in net investment income on page 25

---

Appendix Earnings Call Presentation – 3Q 2020 14

---

A Leading Specialized Insurer Taking advantage of a diversified portfolio of niche businesses…. Founded in 1990 and headquartered in Chicago, with subsidiaries writing policies since 1911 ~$14B ~6.3M ~30,000 ~9,300 Assets Policies Agents/Brokers Employees Specialty P&C insurance providing Preferred personal lines insurance Life and health insurance personal and commercial providing preferred automobile, providing life, supplemental automobile insurance products homeowners and other personal benefits, and other property insurance products insurance products ….to create value for all our stakeholders Earnings Call Presentation – 3Q 2020 15

---

Capital Deployment Priorities Dedicated to being good stewards of capital 1. Investment in the business • Fund profitable organic growth at appropriate risk-adjusted returns • Strategic investments and acquisitions that enhance the business and meet or exceed our ROE targets over time 2. Return capital to shareholders • Repurchase shares opportunistically • Maintain competitive dividends Management and capital deployment priorities focused on maximizing shareholder value Earnings Call Presentation – 3Q 2020 16

---

Investment Portfolio Exposure to COVID Impacted Categories Fixed income investments in COVID exposed industry sectors is manageable $140 1.8% 1.6% 1.6% $120 1.4% $100 1.2% 1.1% $80 1.0% 1.0% 0.9% 0.8% $ Amount (MM) $ Amount $60 $119 0.6% $85 0.5% 0.5% $40 0.5% Portfolio Maturity % Fixed of $72 $68 0.4% 0.3% 0.2% $20 $39 $38 0.2% $35 0.2% 0.0% $21 0.0% 0.1% 0.1% $14 $18 $0 $2 $2 $5 $6 0.0% AA A BBB High A BBB High AA BBB High AA A BBB High Yield Yield Yield Yield Energy Retail Leisure Transportation ($263MM | 4% of Port) ($172MM | 2% of Por.) ($58MM / 1% of Port) ($31MM | <0.5% of Port) Exposure to COVID sectors is well diversified across high quality assets; 1% of fixed maturity portfolio is in high yield COVID exposed sector investments Earnings Call Presentation – 3Q 2020 17

---

Below Investment Grade Fixed Maturities Portfolio of $524 Million Portfolio is diversified across different asset types $250 50.0% 43.6% 45.0% $200 40.0% 35.0% $150 30.0% 25.4% 25.0% $228 $100 20.0% 16.5% 15.0% $133 9.8% Portfolio Maturity % Fixed of $50 10.0% Below Investment Grade $ $ Amount (MM) Grade Below Investment $87 3.7% $52 0.8% 5.0% 0.2% $19 $4 $0 $1 0.0% Private Private CLO Public Munis Foreign Non-Agency Senior Junior Corp Government MBS Below investment grade portfolio represents roughly 7% of our fixed maturities portfolio Earnings Call Presentation – 3Q 2020 18

---

CLO Composition ($727 Million) CLOs represent 7.3% of investment portfolio $600 80.0% 71.1% 70.0% $500 60.0% $400 50.0% $300 40.0% $ Amount (MM) $ Amount $517 % of CLO %Portfolio CLO of 30.0% $200 20.0% $100 12.5% 11.9% 10.0% $91 2.1% 2.4% $87 $0 $15 $17 0.0% AAA AA A BBB High Yield Well-diversified CLO book with 86% of holdings classified ‘A’ or higher Earnings Call Presentation – 3Q 2020 19

---

Alternative Investment Portfolio of $513 Million Portfolio is highly diversified with strategies focused on private credit, private equity and hedge funds Private Credit ~3% of total investments (63% of Alts portfolio) $69.9 Diversification across date of investment, industry and geography Private Equity ~ 1% of total investments (23% of Alts portfolio) $118.2 Diversification across date of investment, $325.3 industry and geography Hedge Funds < 1% of total investments (14% of Alts portfolio) Diversified in strategies with focus on minimum correlation to public markets and additional liquidity relative to Private Credit and Private Equity strategies Private Credit Private Equity Hedge Funds Alternative investment portfolio is ~5% of total investments and diversified across underlying investment strategies with primary focus on current income generation Earnings Call Presentation – 3Q 2020 20

---

2020 Reinsurance Program Both programs were renewed with no significant change Catastrophe Reinsurance Program (Multi-Year) Aggregate Catastrophe Program • Same coverage as 2019 program 1-Year Term Placed 1/1/20 • Intended to reduce volatility from high- $25M xs $250M 95% Placed frequency, low severity events • Coverage 3-Year Term 3-Year Term 3-Year Term – $50 million in excess of $60 million Placed 1/1/18 Placed 1/1/19 Placed 1/1/20 5% Retention – $500k deductible per storm $100M xs $150M $100M xs $150M $100M xs $150M – Perils: All perils, excluding named storms 31.67% Placed 31.67% Placed 31.67% Placed (e.g., hurricanes) and earthquakes of $225M $225M of – Covered Line: Property, Fire and Dwelling Retention 3-Year Term 3-Year Term 3-Year Term xs Placed 1/1/18 Placed 1/1/19 Placed 1/1/20 $50M 2020 Aggregate Catastrophe $100M xs $50M $100M xs $50M $100M xs $50M Reinsurance Program 31.67% Placed 31.67% Placed 31.67% Placed Retention 100% of first $50M • Policy placed at 1/1/20 similar to prior three years • Total coverage: 95% of $225 million excess of $50 million Earnings Call Presentation – 3Q 2020 21

---

Non-GAAP Financial Measures Book Value Per Share Excluding Net Unrealized Gains on Fixed Maturities is a ratio that uses a non-GAAP financial measure. It is calculated by dividing shareholders’ equity after excluding the after-tax impact of net unrealized gains on fixed income securities by total Common Shares Issued and Outstanding. Book value per share is the most directly comparable GAAP financial measure. The Company uses the trend in book value per share, excluding the after-tax impact of net unrealized gains on fixed income securities in conjunction with book value per share to identify and analyze the change in net worth attributable to management efforts between periods. The Company believes the non-GAAP financial measure is useful to investors because it eliminates the effect of items that can fluctuate significantly from period to period and are generally driven by economic developments, primarily capital market conditions, the magnitude and timing of which are generally not influenced by management. The Company believes it enhances understanding and comparability of performance by highlighting underlying business activity and profitability drivers. Book Value Per Share Excluding Net Unrealized Gains on Fixed Maturities and Goodwill is a calculation that uses a non-GAAP financial measure. It is calculated by dividing shareholders’ equity after excluding the after-tax impact of net unrealized gains on fixed income securities and goodwill by total Common Shares Issued and Outstanding. Book value per share is the most directly comparable GAAP financial measure. The Company uses the trends in book value per share excluding the after-tax impact of net unrealized gains on fixed income securities and goodwill in conjunction with book value per share to identify and analyze the change in net worth excluding goodwill attributable to management efforts between periods. The Company believes the non-GAAP financial measure is useful to investors because it eliminates the effect of items that can fluctuate significantly from period to period and are generally driven by economic developments, primarily capital market conditions, the magnitude and timing of which are not influenced by management. The Company believes it enhances understanding and comparability of performance by highlighting underlying business activity and profitability drivers. For the Periods Ended 3Q'20 2Q'20 1Q'20 4Q'19 3Q'19 2Q'19 1Q'19 2018 2017 2016 Book Value Per Share $ 66.47 $ 64.15 $ 57.54 $ 59.59 $ 58.43 $ 55.34 $ 51.13 $ 47.10 $ 41.11 $ 38.52 Less: Net Unrealized Gains on Fixed Maturities Per Share (9.84) (9.02) (4.01) (6.51) (6.92) (5.52) (3.72) (1.70) (5.54) (3.52) Book Value Per Share Excluding Net Unrealized Gains on Fixed Maturities $ 56.63 $ 55.13 $ 53.53 $ 53.08 $ 51.51 $ 49.82 $ 47.41 $ 45.40 $ 35.57 $ 35.00 Less: Goodwill (17.03) (17.06) (17.04) (16.72) (16.71) (16.74) (17.12) (17.18) (6.28) (6.30) Book Value Per Share Excluding Net Unrealized Gains on Fixed Maturities and Goodwill $ 39.60 $ 38.07 $ 36.49 $ 36.36 $ 34.80 $ 33.08 $ 30.29 $ 28.22 $ 29.29 $ 28.70 Earnings Call Presentation – 3Q 2020 22

---

Non-GAAP Financial Measures Return on Equity For the Periods Ended 3Q'20 2Q'20 1Q'20 4Q'19 3Q'19 2Q'19 1Q'19 2018 2017 2016 Rolling 12 Month Return on Average Shareholders' Equity (5 Point Avg) 10.8% 11.4% 11.8% 14.8% 12.1% 12.4% 10.8% 7.7% 5.9% 0.8% Less: Net Unrealized Gains on Fixed Maturities 1.5% 1.4% 1.2% 1.5% 1.0% 0.9% 0.6% 0.6% 0.7% 0.1% Rolling 12 Month Return on Average Shareholders' Equity Excluding Net Unrealized Gains on Fixed Maturities (5 Point Avg) 12.3% 12.8% 13.0% 16.3% 13.1% 13.3% 11.4% 8.3% 6.6% 0.9% Less: Goodwill 5.6% 6.0% 6.5% 8.4% 7.2% 6.6% 5.2% 3.1% 1.4% 0.2% Rolling 12 Month Return on Average Shareholders' Equity Excluding Net Unrealized Gains on Fixed Maturities and Goodwill (5 Point Avg) 17.9% 18.8% 19.5% 24.7% 20.3% 19.9% 16.6% 11.4% 8.0% 1.1% Earnings Call Presentation – 3Q 2020 23

---

Non-GAAP Financial Measures Reconciliation of “All Other” Sources of Volatility Three Months Ended, As Reported Sep. 30, Jun. 30, Mar. 31, Dec. 31, Sep. 30, Variance Dollars per Unrestricted Share - Diluted 2020 2020 2020 2019 2019 QoQ - - All Other Volatility - Partial Satisfaction of Judgment - - 1.05 - - - Sale of Classic Collectors Auto Business - - - - 0.04 (0.04) Refinement of CEI Estimate - 0.06 0.05 0.07 0.18 (0.18) Impact of Purchase Accounting (0.05) (0.06) (0.07) (0.07) (0.09) 0.04 Total All Other (0.05) - 1.03 - 0.13 (0.18) Earnings Call Presentation – 3Q 2020 24

---

Non-GAAP Financial Measures Reconciliation of COLI investment into Net Investment Income. Prior to 1Q 2020, COLI was reported in “Other Income.” Starting in the 1Q 2020, COLI was reported in net investment income. For the Periods Ended Consolidated 4Q'19 3Q'19 Reported Net Investment Income $ 93.9 $ 91.7 COLI Investment Income $ 3.6 $ 3.6 Total Adjusted Net Investment Income $ 97.5 $ 95.3 Reported Pre-Tax Equivalent Book Yield 4.5% 4.4% COLI Pre-Tax Equivalent Book Yield 0.1% 0.1% Total Pre-Tax Equivalent Book Yield 4.6% 4.6% Life and Health Reported Net Investment Income $ 52.0 $ 49.7 COLI Investment Income $ 2.7 $ 2.8 Total Adjusted Net Investment Income $ 54.7 $ 52.5 Earnings Call Presentation – 3Q 2020 25

---

Non-GAAP Financial Measures Adjusted Consolidated Net Operating Income is an after-tax, non-GAAP financial measure computed by excluding from Net Income the after-tax impact of 1) income (loss) from change in fair value of equity and convertible securities, 2) net realized gains on sales of investments, 3) impairment losses related to investments, 4) acquisition related transaction, integration and other costs, 5) loss from early extinguishment of debt and 6) 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. Kemper believes that Adjusted Consolidated Net Operating Income (Loss) provides investors with a valuable measure of its ongoing performance because it reveals underlying operational performance trends that otherwise might be less apparent if the items were not excluded. Income (loss) from change in fair value of equity and convertible securities, net realized gains on sales of investments and impairment losses recognized in earnings 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. Loss from early extinguishment of debt 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. Acquisition related transaction, integration 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. Significant non-recurring items are excluded because, by their nature, they are not indicative of the Company’s business or economic trends. Earnings Call Presentation – 3Q 2020 26

---

Non-GAAP Financial Measures Diluted Adjusted Consolidated Net Operating Income Per Unrestricted Share is a non-GAAP financial measure computed by dividing Adjusted Consolidated Net Operating Income (Loss) attributed to unrestricted shares by the weighted-average unrestricted shares and equivalent shares outstanding. The most directly comparable GAAP financial measure is Diluted Net Income Per Unrestricted Share. Kemper believes that Diluted Adjusted Consolidated Net Operating Income Per Unrestricted Share provides investors with a valuable measure of its ongoing performance because it reveals underlying operational performance trends that otherwise might be less apparent if the items were not excluded. Income from change in fair value of equity and convertible securities, net realized gains on sales of investments, impairment losses related to investments, acquisition related transaction, integration and other costs and loss from early extinguishment of debt included in Kemper’s results may vary significantly between periods and are generally driven by business decisions and external economic developments such as capital market conditions that impact the values of the company’s investments, the timing of which is unrelated to the insurance underwriting process. For the Three Months Ended Per Unrestricted Share 3Q20 2Q20 1Q20 4Q19 3Q19 Net Income - Diluted $ 1.83 $ 1.91 $ 0.95 $ 1.85 $ 1.91 Net (Income) Loss From: Change in Fair Value of Equity & Convertible Securities (0.53) (0.86) 1.39 (0.46) (0.11) Net Realized Gains on Sales of Investments (0.12) (0.14) (0.19) (0.03) (0.02) Impairment Losses 0.01 0.08 0.14 0.02 0.02 Acquisition Related Transaction, Integration and Other Costs 0.17 0.21 0.14 0.07 0.06 Loss from Early Extinguishment of Debt - - - - 0.07 Adj. Consolidated Net Operating Income - Diluted $ 1.36 $ 1.20 $ 2.43 $ 1.45 $ 1.93 Earnings Call Presentation – 3Q 2020 27

---

Non-GAAP Financial Measures Underlying Combined Ratio is a non-GAAP financial measure. It is computed by adding the Current Year Non-catastrophe Losses and LAE Ratio with the Insurance Expense Ratio. The most directly comparable GAAP financial measure is the Combined Ratio, which is computed by adding total incurred losses and LAE, including the impact of catastrophe losses and loss and LAE reserve development from prior years, with the Insurance Expense Ratio. The Company believes the underlying combined ratio is useful to investors and is used by management to reveal the trends in the Company’s property and casualty insurance businesses that may be obscured by catastrophe losses and prior-year reserve development. These catastrophe losses cause loss trends to vary significantly between periods as a result of their incidence of occurrence and magnitude, and can have a significant impact on the combined ratio. Prior-year reserve developments are caused by unexpected loss development on historical reserves. Because reserve development relates to the re-estimation of losses from earlier periods, it has no bearing on the performance of our insurance products in the current period. The Company believes it is useful for investors to evaluate these components separately and in the aggregate when reviewing the Company’s underwriting performance. The underlying combined ratio should not be considered a substitute for the combined ratio and does not reflect the overall underwriting profitability of our business. Earnings Call Presentation – 3Q 2020 28

---

Non-GAAP Financial Measures Underlying Combined Ratio – Continued For the Three Months Ended 3Q20 2Q20 1Q20 4Q19 3Q19 Specialty P&C Insurance Combined Ratio as Reported 86.3% 91.0% 94.5% 93.8% 91.6% Current Year Catastrophe Loss and LAE Ratio (0.2%) (0.6%) 0.0% (0.5%) (0.3%) Prior Years Non-Catastrophe Losses and LAE (0.2%) (1.3%) (0.6%) 0.5% 0.5% Prior Years Catastrophe Losses and LAE Ratio 0.0% 0.0% 0.0% 0.0% 0.0% Underlying Combined Ratio 85.9% 89.1% 93.9% 93.8% 91.8% Preferred P&C Insurance Combined Ratio as Reported 129.9% 102.2% 92.6% 97.5% 92.4% Current Year Catastrophe Loss and LAE Ratio (35.5%) (12.6%) (2.7%) (6.4%) (6.2%) Prior Years Non-Catastrophe Losses and LAE (3.6%) (5.0%) 1.8% 3.8% 0.6% Prior Years Catastrophe Losses and LAE Ratio (0.1%) (0.2%) 0.6% 1.7% 8.1% Underlying Combined Ratio 90.7% 84.4% 92.3% 96.6% 94.9% Preferred Auto Combined Ratio as Reported 103.5% 100.1% 99.5% 103.6% 101.5% Current Year Catastrophe Loss and LAE Ratio (1.6%) (2.0%) (0.2%) (1.3%) (1.8%) Prior Years Non-Catastrophe Losses and LAE (5.3%) (9.8%) (1.9%) 2.4% 0.4% Prior Years Catastrophe Losses and LAE Ratio 0.2% 0.3% 0.1% (0.2%) 0.1% Underlying Combined Ratio 96.8% 88.6% 97.5% 104.5% 100.2% Preferred Home & Other Combined Ratio as Reported 175.6% 105.4% 80.7% 87.0% 77.1% Current Year Catastrophe Loss and LAE Ratio (94.1%) (28.8%) (7.0%) (15.3%) (13.7%) Prior Years Non-Catastrophe Losses and LAE (0.6%) 2.3% 8.3% 6.3% 0.8% Prior Years Catastrophe Losses and LAE Ratio (0.5%) (1.1%) 1.5% 4.9% 21.5% Underlying Combined Ratio 80.4% 77.8% 83.5% 82.9% 85.7% Earnings Call Presentation – 3Q 2020 29

---

Non-GAAP Financial Measures As Adjusted for Acquisition – Continued Specialty P&C Insurance Segment Three Months Ended 30-Sep-20 30-Jun-20 31-Mar-20 31-Dec-19 30-Sep-19 Earned Premiums Kemper Specialty P&C - GAAP As Reported $ 871.4 $ 759.0 $ 822.5 $ 799.7 $ 783.4 Current Year Non-CAT Losses and LAE Kemper Specialty P&C - GAAP As Reported $ 589.0 $ 515.8 $ 619.8 $ 599.5 $ 579.4 Less: Impact of Purchase Accounting Amortization of Fair Value Adjustment to Infinity's Unpaid Loss and LAE 0.3 0.8 0.7 0.8 0.8 As Adjusted 1 $ 588.7 $ 515.0 $ 619.1 $ 598.7 $ 578.6 Insurance Expenses Kemper Specialty P&C - GAAP As Reported $ 159.5 $ 161.2 $ 152.1 $ 150.7 $ 139.2 Less: Impact of Purchase Accounting 4.2 4.5 5.2 5.2 7.3 As Adjusted 1 $ 155.3 $ 156.7 $ 146.9 $ 145.5 $ 131.9 As Adjusted 1 Underlying Combined Ratio As Adjusted 1 Underlying Loss & LAE Ratio 67.6% 67.8% 75.3% 74.9% 73.9% As Adjusted 1 Expense Ratio 17.8% 20.6% 17.9% 18.2% 16.8% As Adjusted 1 Underlying Combined Ratio 85.4% 88.5% 93.1% 93.1% 90.7% ¹ As Adjusted is a non-GAAP measure, which is comprised by excluding impact of purchase accounting in 2018 and including historical results of Kemper and Infinity in periods prior to acquisition date of July 2, 2018. Earnings Call Presentation – 3Q 2020 30

---

Non-GAAP Financial Measures As Adjusted for Acquisition – Continued Specialty Personal Automobile Insurance Three Months Ended 30-Sep-20 30-Jun-20 31-Mar-20 31-Dec-19 30-Sep-19 Earned Premiums Kemper Specialty Auto - GAAP As Reported $ 792.2 $ 689.8 $ 753.2 $ 733.1 $ 719.2 Current Year Non-CAT Losses and LAE Kemper Specialty Auto - GAAP As Reported $ 543.4 $ 472.4 $ 576.0 $ 557.5 $ 538.2 Less: Impact of Purchase Accounting Amortization of Fair Value Adjustment to Infinity's Unpaid Loss and LAE 0.2 0.6 0.6 0.6 0.6 As Adjusted 1 $ 543.2 $ 471.8 $ 575.4 $ 556.9 $ 537.6 Insurance Expenses Kemper Specialty Auto - GAAP As Reported $ 145.6 $ 146.7 $ 139.2 $ 138.1 $ 128.4 Less: Impact of Purchase Accounting 3.2 3.5 4.5 4.5 6.4 As Adjusted 1 $ 142.4 $ 143.2 $ 134.7 $ 133.6 $ 122.0 As Adjusted 1 Underlying Combined Ratio As Adjusted 1 Underlying Loss & LAE Ratio 68.6% 68.4% 76.4% 76.0% 74.7% As Adjusted 1 Expense Ratio 18.0% 20.8% 17.9% 18.2% 17.0% As Adjusted 1 Underlying Combined Ratio 86.5% 89.2% 94.3% 94.2% 91.7% ¹ As Adjusted is a non-GAAP measure, which is comprised by excluding impact of purchase accounting in 2018 and including historical results of Kemper and Infinity in periods prior to acquisition date of July 2, 2018. Earnings Call Presentation – 3Q 2020 31

---