kmpr-20211028
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
Form 8-K
 
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): October 28, 2021 
Kemper Corporation
(Exact name of registrant as specified in its charter)
 
Commission File Number: 001-18298
 
DE 95-4255452
(State or other jurisdiction
of incorporation)		 (IRS Employer
Identification No.)
200 E. Randolph Street, Suite 3300, Chicago, IL 60601
(Address of principal executive offices, including zip code)
312-661-4600
(Registrant’s telephone number, including area code)
(Former name or former address, if changed since last report)
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the Registrant under any of the following provisions (see General Instruction A.2.below):
☐Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock, par value $0.10 per shareKMPRNYSE

Indicate by check mark whether the registrant is an emerging growth company as defined in as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging Growth Company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition
period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of
the Exchange Act.    ¨


Section 2. – Financial Information
Item 2.02.Results of Operations and Financial Condition.
On October 28, 2021, Kemper Corporation ("Kemper" or the "Registrant") issued a press release announcing its financial results for the third quarter of 2021 and the availability of Kemper’s third quarter investor supplement and earnings call presentation on its website, kemper.com. The press release, the investor supplement and the earnings call presentation are furnished as Exhibits 99.1, 99.2 and 99.3, respectively, to this report.
Section 9. – Financial Statements and Exhibits.
Item 9.01.Financial Statements and Exhibits.
(d) Exhibits

99.1 Registrant’s press release dated October 28, 2021.
99.2 Third Quarter 2021 Investor Supplement of Kemper Corporation.
99.3 Third Quarter 2021 Earnings Call Presentation.


SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
  Kemper Corporation
Date:October 28, 2021/s/    JAMES J. MCKINNEY
 James J. McKinney
 Executive Vice President and Chief Financial Officer (principal financial officer)


Exhibit 99.1
 

kemperlogocolorwebfinala05b.jpg
Kemper Corporation
200 East Randolph Street
Suite 3300
Chicago, IL 60601
kemper.com

Press Release
Kemper Reports Third Quarter 2021 Operating Results
CHICAGO, October 28, 2021 — Kemper Corporation (NYSE: KMPR) reported net loss of $75.3 million, or $(1.18) per diluted share, for the third quarter of 2021, compared to net income of $122.3 million, or $1.83 per diluted share, for the third quarter of 2020. As adjusted1 for the acquisitions of American Access Casualty Company (“AAC”) and Infinity Property and Casualty Corporation, net loss was $68.6 million, or $(1.08) per diluted share, for the third quarter of 2021, compared to net income of $139.9 million, or $2.10 per diluted share, for the third quarter of 2020. In the third quarter of 2021, net loss included a $0.5 million after-tax loss, or $(0.01) per diluted share, attributable to the change in fair value of equity and convertible securities.
Adjusted Consolidated Net Operating Loss1 was $75.8 million, or $(1.19) per diluted share, for the third quarter of 2021, compared to Adjusted Consolidated Net Operating Income1 of $90.9 million, or $1.36 per diluted share, for the third quarter of 2020.
Key themes of the quarter include:
•Specialty P&C earned premiums increased 18% and policies-in-force (ex. Classic Car) grew ~17.8%; AAC contributed 10.6% and 13.6% for earned premiums and policies-in-force, respectively
•Specialty P&C underlying combined ratio1 was 108.9%, due primarily to higher claim frequency and severity trends
•Specialty P&C experienced adverse prior year development of $25M, or 2.4 points, primarily driven by legal developments and increased severity in personal injury protection coverage in Florida
•Consolidated catastrophe losses were $32.4 million, primarily related to Hurricane Ida and several wind/hail events
•Net investment income results were strong for the quarter, primarily driven by Alternative Investments
•Kemper remains well positioned to support customers and grow long-term shareholder value

“Continued industry-related environmental pressures challenged our financial results,” said President, CEO and Chairman Joseph P. Lacher, Jr. “In our P&C segments, the strong post re-opening economy led to additional increases in loss costs. In addition, an atypical second surge in Florida personal injury protection litigation led to an increase to prior year reserves of $25 million. Corrective actions including rate increases and non-rate actions are in progress to return us to target profitability and position us for growth in 2023. Further, our Life business saw strong persistency improvements and generated an increase in earned premiums of 5%, although we saw increased COVID-related mortality due to the Delta variant.

“Our balance sheet provides appropriate financial stability for the challenges faced by the industry. Our strong capital and liquidity positions enable us to navigate and optimize the current environment. Despite the current challenges, we remain financially strong, and our team will continue to deliver on our promises to our customers and provide attractive, long-term results and value for our shareholders.”
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 EndedNine Months Ended
(Dollars in Millions, Except Per Share Amounts) (Unaudited)Sep 30,
2021		Sep 30, 2020Sep 30,
2021		Sep 30,
2020
Net Income (Loss)$(75.3)$122.3 $(14.7)$312.4 
Adjusted Consolidated Net Operating Income (Loss) 1
$(75.8)$90.9 $(88.0)$333.0 
Impact of Catastrophe Losses and Related Loss Adjustment Expense (LAE) on Net Income
$(25.7)$(53.0)$(75.0)$(79.9)
Diluted Net Income (Loss) Per Share From:
Net Income (Loss)$(1.18)$1.83 $(0.23)$4.67 
Adjusted Consolidated Net Operating Income (Loss) 1
$(1.19)$1.36 $(1.36)$4.98 
Impact of Catastrophe Losses and Related LAE on Net Income (Loss) Per Share$(0.40)$(0.80)$(1.16)$(1.20)
Capital
Total Shareholders’ Equity at the end of the quarter was $4,151.2 million, a decrease of $412.2 million, or 9 percent, since year-end 2020 primarily driven by a decrease in the valuation of our fixed income bond portfolio, repurchases of common stock, and cash dividends. Kemper and its direct non-insurance subsidiaries ended the quarter with cash and investments of $330.6 million, and the $400.0 million revolving credit agreement was undrawn.
During the third quarter of 2021, Kemper paid dividends of $19.7 million.
On August 4, 2021, Kemper announced that its Board of Directors declared a quarterly dividend of $0.31 per share.
Kemper ended the quarter with a book value per share of $65.22, a decrease of 6 percent from $69.74 at the end of 2020. Book Value Per Share Excluding Net Unrealized Gains on Fixed Maturities1 was $56.94, compared to $58.67 at the end of 2020.
Revenues
Total revenues for the third quarter of 2021 increased $101.7 million, or 8 percent, to $1,455.4 million, compared to the third quarter of 2020, driven by $156.9 million of higher Specialty P&C earned premiums, partially offset by a $45.8 million decrease 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 $9.8 million to $101.9 million in the third quarter of 2021 compared to the third quarter of 2020 due primarily to an increase in return from Alternative Investments, higher levels of investments in fixed income securities, and higher levels of investments and rate on Company-Owned Life Insurance, partially offset by lower yields on fixed income securities. Net realized investment gains were $10.1 million in the third quarter of 2021, compared to $10.0 million in the third quarter of 2020. Other income increased from $0.9 million in the third quarter of 2020 to $12.3 million in the third quarter of 2021.

2

Segment Results
Unless otherwise noted, (i) the segment results discussed below are presented on an after-tax basis, (ii) prior-year development includes both catastrophe and non-catastrophe losses and LAE, (iii) catastrophe losses and LAE exclude the impact of prior-year development, (iv) loss ratio includes loss and LAE, and (v) all comparisons are made to the prior year quarter unless otherwise stated.
Three Months EndedNine Months Ended
(Dollars in Millions) (Unaudited)Sep 30,
2021		Sep 30,
2020		Sep 30,
2021		Sep 30,
2020
Segment Net Operating Income (Loss):
Specialty Property & Casualty Insurance$(59.3)$119.2 $(70.9)$246.8 
Preferred Property & Casualty Insurance(6.4)(32.7)(5.1)(13.4)
Life & Health Insurance2.8 12.2 23.1 50.6 
Total Segment Net Operating Income (Loss)(62.9)98.7 (52.9)284.0 
Corporate and Other Net Operating Income (Loss)(12.9)(7.8)(35.1)49.0 
Adjusted Consolidated Net Operating Income (Loss) 1
(75.8)90.9 (88.0)333.0 
Net Income (Loss) From:
Change in Fair Value of Equity and Convertible Securities(0.5)35.7 73.0 (0.8)
Net Realized Gains on Sales of Investments7.9 7.9 34.0 30.2 
Impairment Losses(0.5)(0.8)(6.2)(15.8)
Acquisition Related Transaction, Integration and Other Costs(6.4)(11.4)(27.5)(34.2)
Net Income (Loss)$(75.3)$122.3 $(14.7)$312.4 
The Specialty Property & Casualty Insurance segment reported net operating loss of $59.3 million for the third quarter of 2021, compared to net operating income of $119.2 million in the third quarter of 2020. Results decreased due primarily to higher underlying loss ratio and adverse development of prior year loss and LAE reserves. The segment’s Underlying Combined Ratio1 was 108.9 percent, compared to 85.9 percent in the third quarter of 2020.
The Preferred Property & Casualty Insurance segment reported net operating loss of $6.4 million for the third quarter of 2021, compared to net operating loss of $32.7 million in the third quarter of 2020. Results improved due primarily to lower catastrophe losses and LAE. The Preferred Property & Casualty Insurance segment’s Underlying Combined Ratio1 deteriorated 11.5 percentage points from the third quarter of 2020 to 102.2 percent in the third quarter of 2021 due primarily to higher incurred losses and LAE.
The Life & Health Insurance segment reported net operating income of $2.8 million for the third quarter of 2021, compared to $12.2 million in the third quarter of 2020.
3

Unaudited condensed consolidated statements of income for the three and nine months ended September 30, 2021 and 2020 are presented below.
Three Months EndedNine Months Ended
(Dollars in Millions, Except Per Share Amounts)
Sep 30,
2021		Sep 30,
2020		Sep 30,
2021		Sep 30,
2020
Revenues:
Earned Premiums
$1,356.1 $1,206.5 $3,894.6 $3,458.2 
Net Investment Income
101.9 92.1 318.9 245.5 
Change in Value of Alternative Energy Partnership Investments2
(23.8)— (46.9)— 
Other Income
12.3 0.9 20.8 92.7 
Income (Loss) from Change in Fair Value of Equity and Convertible Securities
(0.6)45.2 92.4 (1.0)
Net Realized Gains on Sales of Investments
10.1 10.0 43.1 38.2 
Impairment Losses(0.6)(1.0)(7.8)(20.0)
Total Revenues1,455.4 1,353.7 4,315.1 3,813.6 
Expenses:
Policyholders’ Benefits and Incurred Losses and Loss Adjustment Expenses
1,211.2 877.5 3,324.8 2,460.2 
Insurance Expenses
311.3 276.9 909.0 821.2 
Interest and Other Expenses
62.7 47.2 179.2 142.7 
Total Expenses1,585.2 1,201.6 4,413.0 3,424.1 
Income (Loss) before Income Taxes (129.8)152.1 (97.9)389.5 
Income Tax Benefit (Expense)54.5 (29.8)83.2 (77.1)
Net Income (Loss)$(75.3)$122.3 $(14.7)$312.4 
Income (Loss) from Continuing Operations Per Unrestricted Share:
Basic
$(1.18)$1.87 $(0.23)$4.75 
Diluted
$(1.18)$1.83 $(0.23)$4.67 
Net Income (Loss) Per Unrestricted Share:
Basic
$(1.18)$1.87 $(0.23)$4.75 
Diluted
$(1.18)$1.83 $(0.23)$4.67 
Weighted-average Outstanding (Shares in Thousands):
Unrestricted Shares - Basic63,628.1 65,362.5 64,469.9 65,710.8 
Unrestricted Shares and Equivalent Shares - Diluted63,628.1 66,633.5 64,469.9 66,797.4 
Dividends Paid to Shareholders Per Share$0.31 $0.30 $0.93 $0.90 

2The Alternative Energy Partnership Investments results are included as a pre-tax loss in the Change in Value of Alternative Energy Partnership Investments of $23.8 million and $46.9 million and benefit in income tax expense of $30.6 million and $67.8 million for a net income impact of $6.8 million and $20.9 million for the three and nine months ended September 30, 2021, respectively.

4

Unaudited business segment revenues for the three and nine months ended September 30, 2021 and 2020 are presented below.
Three Months EndedNine Months Ended
(Dollars in Millions)Sep 30,
2021		Sep 30,
2020		Sep 30,
2021		Sep 30,
2020
REVENUES:
Specialty Property & Casualty Insurance:
Earned Premiums:
Specialty Automobile$920.6 $792.2 $2,615.6 $2,235.2 
Commercial Automobile107.7 79.2 300.6 217.7 
Total Earned Premiums1,028.3 871.4 2,916.2 2,452.9 
Net Investment Income37.0 30.5 114.7 76.2 
Change in Value of Alternative Energy Partnership Investments(11.3)— (22.3)— 
Other Income1.2 0.4 3.1 1.4 
Total Specialty Property & Casualty Insurance Revenues1,055.2 902.3 3,011.7 2,530.5 
Preferred Property & Casualty Insurance:
Earned Premiums:
Preferred Automobile102.6 110.6 309.1 324.6 
Homeowners52.5 55.0 154.6 167.4 
Other Personal8.6 8.9 25.4 27.0 
Total Earned Premiums163.7 174.5 489.1 519.0 
Net Investment Income16.1 10.3 51.5 24.3 
Change in Value of Alternative Energy Partnership Investments(6.4)— (12.5)— 
Other Income— — — 0.1 
Total Preferred Property & Casualty Insurance Revenues173.4 184.8 528.1 543.4 
Life & Health Insurance:
Earned Premiums:
Life101.5 96.3 300.2 289.2 
Accident & Health47.0 48.9 142.3 149.1 
Property15.6 15.4 46.8 48.0 
Total Earned Premiums164.1 160.6 489.3 486.3 
Net Investment Income48.4 50.7 151.9 146.0 
Change in Value of Alternative Energy Partnership Investments(6.1)— (12.1)— 
Other Income0.1 — 0.3 0.6 
Total Life & Health Insurance Revenues206.5 211.3 629.4 632.9 
Total Segment Revenues1,435.1 1,298.4 4,169.2 3,706.8 
Income (Loss) from Change in Fair Value of Equity and Convertible Securities(0.6)45.2 92.4 (1.0)
Net Realized Gains on Sales of Investments10.1 10.0 43.1 38.2 
Impairment Losses(0.6)(1.0)(7.8)(20.0)
Other11.4 1.1 18.2 89.6 
Total Revenues$1,455.4 $1,353.7 $4,315.1 $3,813.6 
5

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


Sep 30, 2021Dec 31,
2020
Assets:
Investments:
Fixed Maturities at Fair Value
$7,885.1 $7,605.9 
Equity Securities at Fair Value
969.6 858.5 
Equity Securities at Modified Cost
33.0 40.1 
Equity Method Limited Liability Investments at Cost Plus Cumulative Undistributed Earnings
255.1 204.0 
Alternative Energy Partnership Investments54.2 21.3 
Convertible Securities at Fair Value
44.1 39.9 
Short-term Investments at Cost which Approximates Fair Value
259.7 875.4 
Other Investments
921.5 779.0 
Total Investments
10,422.3 10,424.1 
Cash
119.8 206.1 
Receivables from Policyholders
1,481.2 1,194.5 
Other Receivables
207.3 222.4 
Deferred Policy Acquisition Costs
676.6 589.3 
Goodwill
1,312.0 1,114.0 
Current Income Tax Assets
138.7 15.6 
Other Assets
619.3 575.9 
Total Assets
$14,977.2 $14,341.9 
Liabilities and Shareholders’ Equity:
Insurance Reserves:
Life & Health
$3,524.1 $3,527.5 
Property & Casualty
2,596.2 1,982.5 
Total Insurance Reserves
6,120.3 5,510.0 
Unearned Premiums
1,965.7 1,615.1 
Policyholder Contract Liabilities
481.8 467.0 
Deferred Income Tax Liabilities
242.4 285.7 
Accrued Expenses and Other Liabilities
893.7 727.9 
Debt at Amortized Cost
1,122.1 1,172.8 
Total Liabilities
10,826.0 9,778.5 
Shareholders’ Equity:
Common Stock
6.4 6.5 
Paid-in Capital
1,777.0 1,805.2 
Retained Earnings
1,888.4 2,071.2 
Accumulated Other Comprehensive Income
479.4 680.5 
Total Shareholders’ Equity
4,151.2 4,563.4 
Total Liabilities and Shareholders’ Equity
$14,977.2 $14,341.9 

6

Unaudited selected financial information for the Specialty Property & Casualty Insurance segment follows.
Three Months EndedNine Months Ended
(Dollars in Millions)Sep 30,
2021		Sep 30,
2020		Sep 30,
2021		Sep 30,
2020
Results of Operations
Net Premiums Written$1,024.3 $914.2 $3,078.3 $2,606.3 
Earned Premiums$1,028.3 $871.4 $2,916.2 $2,452.9 
Net Investment Income37.0 30.5 114.7 76.2 
Change in Value of Alternative Energy Partnership Investments(11.3)— (22.3)— 
Other Income1.2 0.4 3.1 1.4 
Total Revenues1,055.2 902.3 3,011.7 2,530.5 
Incurred Losses and LAE related to:
Current Year:
Non-catastrophe Losses and LAE924.4 589.0 2,451.8 1,724.6 
Catastrophe Losses and LAE3.4 2.1 13.2 6.8 
Prior Years:
Non-catastrophe Losses and LAE25.1 1.9 105.0 16.8 
Catastrophe Losses and LAE(0.1)(0.1)0.3 0.1 
Total Incurred Losses and LAE952.8 592.9 2,570.3 1,748.3 
Insurance Expenses194.2 159.5 570.1 472.8 
Operating Income (Loss)(91.8)149.9 (128.7)309.4 
Income Tax Benefit (Expense)32.5 (30.7)57.8 (62.6)
Segment Net Operating Income (Loss)$(59.3)$119.2 $(70.9)$246.8 
Ratios Based On Earned Premiums
Current Year Non-catastrophe Losses and LAE Ratio90.0 %67.6 %84.0 %70.3 %
Current Year Catastrophe Losses and LAE Ratio0.3 0.2 0.5 0.3 
Prior Years Non-catastrophe Losses and LAE Ratio2.4 0.2 3.6 0.7 
Prior Years Catastrophe Losses and LAE Ratio— — — — 
Total Incurred Loss and LAE Ratio92.7 68.0 88.1 71.3 
Insurance Expense Ratio18.9 18.3 19.5 19.3 
Combined Ratio111.6 %86.3 %107.6 %90.6 %
Underlying Combined Ratio1
Current Year Non-catastrophe Losses and LAE Ratio90.0 %67.6 %84.0 %70.3 %
Insurance Expense Ratio18.9 18.3 19.5 19.3 
Underlying Combined Ratio1
108.9 %85.9 %103.5 %89.6 %
Non-GAAP Measure Reconciliation
Combined Ratio111.6 %86.3 %107.6 %90.6 %
Less:
Current Year Catastrophe Losses and LAE Ratio0.3 0.2 0.5 0.3 
Prior Years Non-catastrophe Losses and LAE Ratio2.4 0.2 3.6 0.7 
Prior Years Catastrophe Losses and LAE Ratio— — — — 
Underlying Combined Ratio1
108.9 %85.9 %103.5 %89.6 %
7

Unaudited selected financial information for the Preferred Property & Casualty Insurance segment follows.
Three Months EndedNine Months Ended
(Dollars in Millions)Sep 30,
2021		Sep 30,
2020		Sep 30,
2021		Sep 30,
2020
Results of Operations
Net Premiums Written$164.8 $172.2 $488.8 $497.8 
Earned Premiums$163.7 $174.5 $489.1 $519.0 
Net Investment Income16.1 10.3 51.5 24.3 
Change in Value of Alternative Energy Partnership Investments(6.4)— (12.5)— 
Other Income— — — 0.1 
Total Revenues173.4 184.8 528.1 543.4 
Incurred Losses and LAE related to:
Current Year:
Non-catastrophe Losses and LAE115.6 102.8 328.0 293.8 
Catastrophe Losses and LAE23.4 61.9 71.6 87.3 
Prior Years:
Non-catastrophe Losses and LAE— 6.3 5.1 11.2 
Catastrophe Losses and LAE0.1 0.1 (3.6)(0.6)
Total Incurred Losses and LAE139.1 171.1 401.1 391.7 
Insurance Expenses51.7 55.5 154.8 169.7 
Operating Income (Loss)(17.4)(41.8)(27.8)(18.0)
Income Tax Benefit (Expense)11.0 9.1 22.7 4.6 
Segment Net Operating Income (Loss)$(6.4)$(32.7)$(5.1)$(13.4)
Ratios Based On Earned Premiums
Current Year Non-catastrophe Losses and LAE Ratio70.6 %58.9 %67.1 %56.6 %
Current Year Catastrophe Losses and LAE Ratio14.3 35.5 14.6 16.8 
Prior Years Non-catastrophe Losses and LAE Ratio— 3.6 1.0 2.2 
Prior Years Catastrophe Losses and LAE Ratio0.1 0.1 (0.7)(0.1)
Total Incurred Loss and LAE Ratio85.0 98.1 82.0 75.5 
Insurance Expense Ratio31.6 31.8 31.6 32.7 
Combined Ratio116.6 %129.9 %113.6 %108.2 %
Underlying Combined Ratio1
Current Year Non-catastrophe Losses and LAE Ratio70.6 %58.9 %67.1 %56.6 %
Insurance Expense Ratio31.6 31.8 31.6 32.7 
Underlying Combined Ratio1
102.2 %90.7 %98.7 %89.3 %
Non-GAAP Measure Reconciliation
Combined Ratio116.6 %129.9 %113.6 %108.2 %
Less:
Current Year Catastrophe Losses and LAE Ratio14.3 35.5 14.6 16.8 
Prior Years Non-catastrophe Losses and LAE Ratio— 3.6 1.0 2.2 
Prior Years Catastrophe Losses and LAE Ratio0.1 0.1 (0.7)(0.1)
Underlying Combined Ratio1
102.2 %90.7 %98.7 %89.3 %
8

Unaudited selected financial information for the Life & Health Insurance segment follows.
Three Months EndedNine Months Ended
(Dollars in Millions)Sep 30,
2021		Sep 30,
2020		Sep 30,
2021		Sep 30,
2020
Results of Operations
Earned Premiums$164.1 $160.6 $489.3 $486.3 
Net Investment Income48.4 50.7 151.9 146.0 
Change in Value of Alternative Energy Partnership Investments(6.1)— (12.1)— 
Other Income0.1 — 0.3 0.6 
Total Revenues206.5 211.3 629.4 632.9 
Policyholders’ Benefits and Incurred Losses and LAE119.5 113.6 353.5 320.2 
Insurance Expenses92.9 82.5 269.4 251.1 
Operating Income (Loss)(5.9)15.2 6.5 61.6 
Income Tax Benefit (Expense)8.7 (3.0)16.6 (11.0)
Segment Net Operating Income (Loss)$2.8 $12.2 $23.1 $50.6 
Use of Non-GAAP Financial Measures
Adjusted Consolidated Net Operating Income (Loss) 1 is an after-tax, non-GAAP financial measure and is computed by excluding from Net Income (Loss) the after-tax impact of:
(i) Income (Loss) from Change in Fair Value of Equity and Convertible Securities;
(ii) Net Realized Gains or Losses on Sales of Investments;
(iii) Impairment Losses;
(iv) Acquisition Related Transaction, Integration and Other Costs;
(v) Debt Extinguishment, Pension and Other Charges; and
(vi) Significant non-recurring or infrequent items that may not be indicative of ongoing operations

Significant non-recurring items are excluded when (a) the nature of the charge or gain is such that it is reasonably unlikely to recur within two years, and (b) there has been no similar charge or gain within the prior two years. The most directly comparable GAAP financial measure is Net Income (Loss). There were no applicable significant non-recurring items that Kemper excluded from the calculation of Adjusted Consolidated Net Operating Income for the nine and three months ended September 30, 2021 or 2020.

Kemper believes that Adjusted Consolidated Net Operating Income (Loss) 1 provides investors with a valuable measure of its ongoing performance because it reveals underlying operational performance trends that otherwise might be less apparent if the items were not excluded. Income (Loss) from Change in Fair Value of Equity and Convertible Securities, Net Realized Gains or Losses on Sales of Investments and Impairment Losses related to investments included in Kemper’s results may vary significantly between periods and are generally driven by business decisions and external economic developments such as capital market conditions that impact the values of the Kemper’s investments, the timing of which is unrelated to the insurance underwriting process. Acquisition Related Transaction and Integration Costs may vary significantly between periods and are generally driven by the timing of acquisitions and business decisions which are unrelated to the insurance underwriting process. Debt Extinguishment, Pension and Other Charges relate to (i) loss from early extinguishment of debt, which is driven by Kemper’s financing and refinancing decisions and capital needs, as well as external economic developments such as debt market conditions, the timing of which is unrelated to the insurance underwriting process; (ii) settlement of pension plan obligations which are business decisions made by Kemper, the timing of which is unrelated to the underwriting process; and (iii) other charges that are non-standard, not part of the ordinary course of business, and unrelated to the insurance underwriting process. Significant non-recurring items are excluded because, by their nature, they are not indicative of the Kemper’s business or economic trends. The preceding non-GAAP financial measures should not be considered a substitute for the comparable GAAP financial measures, as they do not fully recognize the overall profitability of the Kemper’s businesses.
9

A reconciliation of Net Income (Loss) to Adjusted Consolidated Net Operating Income (Loss) 1 for the three and nine months ended September 30, 2021 and 2020 is presented below.
Three Months EndedNine Months Ended
(Dollars in Millions) (Unaudited)Sep 30,
2021		Sep 30,
2020		Sep 30,
2021		Sep 30,
2020
Net Income (Loss)$(75.3)$122.3 $(14.7)$312.4 
Less Net Income (Loss) From:
Change in Fair Value of Equity and Convertible Securities(0.5)35.7 73.0 (0.8)
Net Realized Gains on Sales of Investments7.9 7.9 34.0 30.2 
Impairment Losses(0.5)(0.8)(6.2)(15.8)
Acquisition Related Transaction, Integration and Other Costs(6.4)(11.4)(27.5)(34.2)
Adjusted Consolidated Net Operating Income (Loss) 1
$(75.8)$90.9 $(88.0)$333.0 
Diluted Adjusted Consolidated Net Operating Income (Loss) Per Unrestricted Share1 is a non-GAAP financial measure computed by dividing Adjusted Consolidated Net Operating Income (Loss)1 attributed to unrestricted shares by the weighted-average unrestricted shares and equivalent shares outstanding. The most directly comparable GAAP financial measure is Diluted Net Income (Loss) Per Unrestricted Share.
A reconciliation of Diluted Net Income (Loss) Per Unrestricted Share to Diluted Adjusted Consolidated Net Operating Income (Loss) Per Unrestricted Share1 for the three and nine months ended September 30, 2021 and 2020 is presented below.
 Three Months EndedNine Months Ended
(Unaudited)Sep 30,
2021		Sep 30,
2020		Sep 30,
2021		Sep 30,
2020
Diluted Net Income (Loss) Per Unrestricted Share$(1.18)$1.83 $(0.23)$4.67 
Less Net Income (Loss) Per Unrestricted Share From:
Change in Fair Value of Equity and Convertible Securities(0.01)0.53 1.13 (0.01)
Net Realized Gains on Sales of Investments0.13 0.12 0.53 0.45 
Impairment Losses(0.01)(0.01)(0.10)(0.24)
Acquisition Related Transaction, Integration and Other Costs(0.10)(0.17)(0.43)(0.51)
Diluted Adjusted Consolidated Net Operating Income (Loss) Per Unrestricted Share1
$(1.19)$1.36 $(1.36)$4.98 
Book Value Per Share Excluding Net Unrealized Gains on Fixed Maturities1 is a calculation that uses a non-GAAP financial measure. It is calculated by dividing shareholders’ equity after excluding the after-tax impact of net unrealized gains 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.

10

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, 2021 and December 31, 2020 is presented below.
(Dollars in Millions) (Unaudited)Sep 30,
2021		Dec 31,
2020
Shareholders’ Equity$4,151.2 $4,563.4 
Net Unrealized Gains on Fixed Maturities526.9 724.0 
Shareholders’ Equity Excluding Net Unrealized Gains on Fixed Maturities1
$3,624.3 $3,839.4 
Underlying Combined Ratio1 is a non-GAAP financial measure. It is computed by adding the Current Year Non-catastrophe Losses and LAE Ratio with the Insurance Expense Ratio. The most directly comparable GAAP financial measure is the Combined Ratio, which is computed by adding Total Incurred Losses and LAE Ratio, including the impact of catastrophe losses and loss and LAE reserve development from prior years, with the Insurance Expense Ratio.
Kemper believes Underlying Losses and LAE and the Underlying Combined Ratio are useful to investors and uses these financial measures to reveal the trends in Kemper’s Property & Casualty Insurance segment that may be obscured by catastrophe losses and prior-year reserve development. These catastrophe losses may cause the Kemper’s loss trends to vary significantly between periods as a result of their incidence of occurrence and magnitude and can have a significant impact on incurred losses and LAE and the Combined Ratio. Prior-year reserve developments are caused by unexpected loss development on historical reserves. Because reserve development relates to the re-estimation of losses from earlier periods, it has no bearing on the performance of the Kemper’s insurance products in the current period. Kemper believes it is useful for investors to evaluate these components separately and in the aggregate when reviewing the Kemper’s underwriting performance.

11

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

A reconciliation of the As Adjusted for Acquisitions1 non-GAAP financial measures used in this press release to the comparable GAAP financial measure for the three months ended September 30, 2021 is presented below.
(Dollars in Millions, Except Per Share Amounts) (Unaudited)
Kemper Consolidated GAAP Financial MeasureLess Impact of Purchase Accounting Adjustments
As Adjusted for Acquisitions1
Net Income (Loss)$(75.3)$(6.7)$(68.6)
Net Income (Loss) Per Share - Diluted$(1.18)$(0.10)$(1.08)
Specialty Property & Casualty Insurance Segment:
Earned Premiums$1,028.3 $— $1,028.3 
Segment Net Operating Income (Loss)$(59.3)$(7.0)$(52.3)
Specialty Personal Automobile Insurance:
Earned Premiums$920.6 $— $920.6 
Segment Net Operating Income (Loss)$(71.8)$(6.6)$(65.2)
A reconciliation of the As Adjusted for Acquisitions1 non-GAAP financial measures used in this press release to the comparable GAAP financial measure for the three months ended September 30, 2020 is presented below.
(Dollars in Millions, Except Per Share Amounts) (Unaudited)
Kemper Consolidated GAAP Financial MeasureAAC Historical GAAP Financial MeasureLess Impact of Purchase Accounting Adjustments
As Adjusted for Acquisitions1
Net Income (Loss)$122.3 $14.4 $(3.2)$139.9 
Net Income (Loss) Per Share - Diluted$1.83 $0.22 $(0.05)$2.10 
Specialty Property & Casualty Insurance Segment:
Earned Premiums$871.4 $92.6 $— $964.0 
Segment Net Operating Income (Loss)$119.2 $12.4 $(3.6)$135.2 
Specialty Personal Automobile Insurance:
Earned Premiums$792.2 $92.6 $— $884.8 
Segment Net Operating Income (Loss)$100.1 $12.4 $(2.7)$115.2 

12

Conference Call
Kemper will host its conference call to discuss third quarter 2021 results on Thursday, October 28th, at 5:00 p.m. Eastern (4:00 p.m. Central). The conference call will be accessible via the internet and by telephone at 844.200.6205, access code 208544. 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 2021, which is available at the investor section of kemper.com.
About Kemper
The Kemper family of companies is one of the nation’s leading specialized insurers. With approximately $15 billion in assets, Kemper is improving the world of insurance by providing affordable and easy-to-use personalized solutions to individuals, families and businesses through its Auto, Personal Insurance, Life and Health brands. Kemper serves over 6.6 million policies, is represented by approximately 36,700 agents and brokers, and has approximately 10,100 associates dedicated to meeting the ever-changing needs of its customers.
Learn more about Kemper at kemper.com.

Caution Regarding Forward-Looking Statements

This press release may contain or incorporate by reference information that includes or is based on forward-looking statements within the meaning of the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995. 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: Michael Marinaccio

312.661.4930 or [email protected]
Media: Barbara Ciesemier
312.661.4521 or [email protected]
13
Exhibit 99.2

kemperlogocolorwebfinala05a.jpg

Investor Supplement
Third Quarter 2021
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 34.
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 2021
Table of Contents
 
 Page
Consolidated Financial Highlights3
Consolidated Statements of Income4
Consolidated Balance Sheets5
Consolidated Statements of Cash Flows6-7
Capital Metrics8-9
Debt Outstanding, FHLB Advances and Ratings
10
Segment Summary Results:
Revenues11
Operating Income12
Net Operating Income12
Catastrophe Frequency and Severity13
Specialty Property & Casualty Insurance Segment - Results of Operations and Selected Financial Information14-15
Specialty Personal Automobile Insurance16
Commercial Automobile Insurance17
Preferred Property & Casualty Insurance Segment - Results of Operations and Selected Financial Information18-19
Preferred Personal Automobile Insurance20
Homeowners and Other Personal Insurance21
Homeowners Insurance22
Other Personal Insurance23
Life & Health Insurance Segment - Results of Operations and Selected Financial Information24
Life Insurance25
Accident and Health Insurance25
Property Insurance26
Expenses27
Details of Investment Performance28
Details of Invested Assets29-30
Investment Concentration31
Municipal Bond Securities32
Investments in Limited Liability Companies and Limited Partnerships33
Definitions of Non-GAAP Financial Measures34-35
As Adjusted for Acquisition36-39
 






Kemper Corporation
Consolidated Financial Highlights
(Dollars in Millions, Except Per Share Amounts)
(Unaudited)
 Three Months EndedNine Months Ended
Sep 30, 2021Jun 30, 2021Mar 31, 2021Dec 31, 2020Sep 30, 2020Jun 30, 2020Mar 31, 2020Sep 30, 2021Sep 30, 2020
For Period Ended
Earned Premiums
$1,356.1 $1,337.7 $1,200.8 $1,214.0 $1,206.5 $1,085.3 $1,166.4 $3,894.6 $3,458.2 
Net Investment Income
101.9 113.9 103.1 102.7 92.1 67.8 85.6 318.9 245.5 
Change in Value of Alternative Energy Partnership Investments(23.8)(7.7)(15.4)— — — — (46.9)— 
Other Income
12.3 7.0 1.5 1.9 0.9 1.5 90.3 20.8 92.7 
Income (Loss) from Change in Fair Value of Equity and Convertible Securities
(0.6)40.8 52.2 73.1 45.2 71.6 (117.8)92.4 (1.0)
Net Investment Gains (Loss)
9.5 16.0 9.8 0.4 9.0 4.7 4.5 35.3 18.2 
Total Revenues
$1,455.4 $1,507.7 $1,352.0 $1,392.1 $1,353.7 $1,230.9 $1,229.0 $4,315.1 $3,813.6 
Net Income (Loss)$(75.3)$(62.6)$123.2 $97.5 $122.3 $126.1 $64.0 $(14.7)$312.4 
Adjusted Consolidated Net Operating Income (Loss) 1
$(75.8)$(99.4)$87.2 $105.8 $90.9 $79.2 $162.9 $(88.0)$333.0 
Per Unrestricted Common Share Amounts:
Basic:
Net Income (Loss)$(1.18)$(0.97)$1.88 $1.49 $1.87 $1.93 $0.96 $(0.23)$4.75 
Adjusted Consolidated Net Operating Income (Loss) 1
$(1.19)$(1.54)$1.33 $1.62 $1.39 $1.21 $2.45 $(1.36)$5.06 
Diluted:
Net Income (Loss)$(1.18)$(0.97)$1.85 $1.46 $1.83 $1.91 $0.95 $(0.23)$4.67 
Adjusted Consolidated Net Operating Income (Loss) 1
$(1.19)$(1.54)$1.31 $1.59 $1.36 $1.20 $2.43 $(1.36)$4.98 
Dividends Paid to Shareholders Per Share
$0.31 $0.31 $0.31 $0.30 $0.30 $0.30 $0.30 $0.93 $0.90 
At Period End
Total Assets
$14,977.2 $14,950.7 $14,203.7 $14,341.9 $14,090.4 $13,489.4 $12,932.3 
Insurance Reserves
$6,120.3 $5,982.4 $5,541.1 $5,510.0 $5,461.5 $5,375.0 $5,442.4 
Debt
$1,122.1 $1,122.3 $1,122.6 $1,172.8 $1,173.0 $777.7 $778.1 
Shareholders’ Equity
$4,151.2 $4,306.2 $4,339.1 $4,563.4 $4,347.5 $4,187.9 $3,760.8 
Shareholders’ Equity Excluding Goodwill1,2
$2,839.2 $2,994.3 $3,225.1 $3,449.4 $3,233.5 $3,073.9 $2,646.8 
Common Shares Issued and Outstanding (In Millions)
63.652 63.636 65.016 65.436 65.406 65.282 65.365 
Book Value Per Share2
$65.22 $67.67 $66.74 $69.74 $66.47 $64.15 $57.54 
Book Value Per Share Excluding Goodwill1,2
$44.61 $47.05 $49.60 $52.71 $49.44 $47.09 $40.49 
Book Value Per Share Excluding Net Unrealized Gains on Fixed Maturities1,2
$56.94 $58.39 $60.00 $58.67 $56.63 $55.13 $53.53 
Book Value Per Share Excluding Net Unrealized Gains on Fixed Maturities and Goodwill1,2
$36.33 $37.77 $42.87 $41.65 $39.60 $38.07 $36.49 
Debt to Total Capitalization2
21.3 %20.7 %20.6 %20.4 %21.2 %15.7 %17.1 %
Rolling 12 Months Return on 5-point Average Shareholders Equity2,3
1.9 %6.4 %11.1 %9.8 %10.8 %11.4 %11.8 %
1 Non-GAAP Financial Measure. See page 34 for definition.
2 See Capital Metrics on pages 8-9 for detail calculations.
3 Rolling 12 Months Return on 5-point Average Shareholders Equity is calculated by taking the last 12 months of Net Income (Loss) divided by the 5-point average Shareholders’ Equity. The 5-point Average Shareholders’ Equity is calculated by using a 5-point quarter average of Shareholders’ Equity for the 12 month period.
3

Kemper Corporation
Consolidated Statements of Income
(Dollars in Millions, Except Per Share Amounts)
(Unaudited)
 Three Months EndedNine Months Ended
 Sep 30, 2021Jun 30, 2021Mar 31, 2021Dec 31, 2020Sep 30, 2020Jun 30, 2020Mar 31, 2020Sep 30, 2021Sep 30, 2020
Revenues:
Earned Premiums$1,356.1 $1,337.7 $1,200.8 $1,214.0 $1,206.5 $1,085.3 $1,166.4 $3,894.6 $3,458.2 
Net Investment Income101.9 113.9 103.1 102.7 92.1 67.8 85.6 318.9 245.5 
Change in Value of Alternative Energy Partnership Investments(23.8)(7.7)(15.4)— — — — (46.9)— 
Other Income12.3 7.0 1.5 1.9 0.9 1.5 90.3 20.8 92.7 
Income (Loss) from Change in Fair Value of Equity and Convertible Securities(0.6)40.8 52.2 73.1 45.2 71.6 (117.8)92.4 (1.0)
Net Realized Gains (Losses) on Sales of Investments10.1 19.2 13.8 (0.1)10.0 11.7 16.5 43.1 38.2 
Impairment Losses(0.6)(3.2)(4.0)0.5 (1.0)(7.0)(12.0)(7.8)(20.0)
Total Revenues1,455.4 1,507.7 1,352.0 1,392.1 1,353.7 1,230.9 1,229.0 4,315.1 3,813.6 
Expenses:
Policyholders’ Benefits and Incurred Losses and Loss Adjustment Expenses1,211.2 1,224.1 889.5 863.4 877.5 747.5 835.2 3,324.8 2,460.2 
Insurance Expenses311.3 314.0 283.7 279.3 276.9 272.7 271.6 909.0 821.2 
Interest and Other Expenses62.7 59.3 57.2 128.8 47.2 51.0 44.5 179.2 142.7 
Total Expenses1,585.2 1,597.4 1,230.4 1,271.5 1,201.6 1,071.2 1,151.3 4,413.0 3,424.1 
Income (Loss) before Income Taxes(129.8)(89.7)121.6 120.6 152.1 159.7 77.7 (97.9)389.5 
Income Tax Benefit (Expense)54.5 27.1 1.6 (23.1)(29.8)(33.6)(13.7)83.2 (77.1)
Net Income (Loss)$(75.3)$(62.6)$123.2 $97.5 $122.3 $126.1 $64.0 $(14.7)$312.4 
Income (Loss) Per Unrestricted Share:
Basic$(1.18)$(0.97)$1.88 $1.49 $1.87 $1.93 $0.96 $(0.23)$4.75 
Diluted$(1.18)$(0.97)$1.85 $1.46 $1.83 $1.91 $0.95 $(0.23)$4.67 
Net Income (Loss) Per Unrestricted Share:
Basic$(1.18)$(0.97)$1.88 $1.49 $1.87 $1.93 $0.96 $(0.23)$4.75 
Diluted$(1.18)$(0.97)$1.85 $1.46 $1.83 $1.91 $0.95 $(0.23)$4.67 
Dividends Paid to Shareholders Per Share$0.31 $0.31 $0.31 $0.30 $0.30 $0.30 $0.30 $0.93 $0.90 
Weighted Average Unrestricted Common Shares Outstanding (in Millions)63.628 64.377 65.425 65.414 65.363 65.258 66.516 64.470 65.711 
 
4

Kemper Corporation
Consolidated Balance Sheets
(Dollars in Millions)
(Unaudited)
Sep 30, 2021Jun 30, 2021Mar 31, 2021Dec 31, 2020Sep 30, 2020Jun 30, 2020Mar 31, 2020
Assets:
Investments:
Fixed Maturities at Fair Value$7,885.1 $7,835.0 $7,479.4 $7,605.9 $7,504.8 $7,480.4 $6,998.5 
Equity Securities at Fair Value969.6 957.7 897.4 858.5 788.2 783.3 709.8 
Equity Securities at Modified Cost33.0 32.5 36.0 40.1 48.4 48.1 44.8 
Equity Method Limited Liability Investments255.1 245.5 219.2 204.0 206.2 209.9 226.3 
Alternative Energy Partnerships54.2 46.6 54.4 21.3 — — — 
Convertible Securities at Fair Value44.1 43.6 42.6 39.9 36.3 35.0 32.8 
Short-term Investments at Cost which Approximates Fair Value259.7 370.6 196.9 875.4 628.8 154.2 166.7 
Other Investments921.5 910.8 896.8 779.0 762.8 757.5 760.2 
Total Investments10,422.3 10,442.3 9,822.7 10,424.1 9,975.5 9,468.4 8,939.1 
Cash119.8 105.1 547.4 206.1 352.2 389.3 301.3 
Receivables from Policyholders1,481.2 1,479.9 1,260.9 1,194.5 1,249.3 1,165.3 1,219.1 
Other Receivables207.3 214.9 225.4 222.4 214.0 207.1 207.8 
Deferred Policy Acquisition Costs676.6 652.7 611.7 589.3 578.2 560.8 551.5 
Goodwill1,312.0 1,311.9 1,114.0 1,114.0 1,114.0 1,114.0 1,114.0 
Current Income Tax Assets138.7 94.2 65.6 15.6 33.1 3.5 17.8 
Other Assets619.3 649.7 556.0 575.9 574.1 581.0 581.7 
Total Assets$14,977.2 $14,950.7 $14,203.7 $14,341.9 $14,090.4 $13,489.4 $12,932.3 
Liabilities and Shareholders’ Equity:
Insurance Reserves:
Life and Health$3,524.1 $3,551.6 $3,541.6 $3,527.5 $3,511.5 $3,497.7 $3,500.8 
Property and Casualty2,596.2 2,430.8 1,999.5 1,982.5 1,950.0 1,877.3 1,941.6 
Total Insurance Reserves6,120.3 5,982.4 5,541.1 5,510.0 5,461.5 5,375.0 5,442.4 
Unearned Premiums1,965.7 1,968.1 1,713.0 1,615.1 1,681.6 1,642.6 1,621.4 
Policyholder Contract Liabilities481.8 442.7 466.5 467.0 503.7 520.3 430.5 
Deferred Income Tax Liabilities242.4 269.6 227.6 285.7 245.5 226.8 116.0 
Accrued Expenses and Other Liabilities893.7 859.4 793.8 727.9 677.6 759.1 783.1 
Long-term Debt, Current and Non-current, at Amortized Cost1,122.1 1,122.3 1,122.6 1,172.8 1,173.0 777.7 778.1 
Total Liabilities10,826.0 10,644.5 9,864.6 9,778.5 9,742.9 9,301.5 9,171.5 
Shareholders’ Equity:
Common Stock6.4 6.4 6.5 6.5 6.5 6.5 6.5 
Paid-in Capital1,777.0 1,770.9 1,802.1 1,805.2 1,798.5 1,792.5 1,788.2 
Retained Earnings1,888.4 1,985.9 2,140.0 2,071.2 1,993.5 1,891.6 1,791.2 
Accumulated Other Comprehensive Income479.4 543.0 390.5 680.5 549.0 497.3 174.9 
Total Shareholders’ Equity4,151.2 4,306.2 4,339.1 4,563.4 4,347.5 4,187.9 3,760.8 
Total Liabilities and Shareholders’ Equity$14,977.2 $14,950.7 $14,203.7 $14,341.9 $14,090.4 $13,489.4 $12,932.3 
5

Kemper Corporation
Consolidated Statements of Cash Flows
(Dollars in Millions)
 (Unaudited)
 Nine Months Ended
 Sep 30, 2021Sep 30, 2020
Cash Flows from Operating Activities:
Net Income (Loss)$(14.7)$312.4 
Adjustments to Reconcile Net Income (Loss) to Net Cash Provided by Operating Activities:
Net Realized Investment Gains(43.1)(38.2)
Impairment Losses7.8 20.0 
Depreciation and Amortization of Property, Equipment and Software32.8 26.6 
Amortization of Intangibles Assets Acquired46.4 14.1 
Change in Accumulated Undistributed Earnings of Equity Method Limited Liability Investments(50.9)5.6 
(Income) Loss from Alternative Energy Partnership Investments46.9 — 
Decrease (Increase) in Value of Equity and Convertible Securities at Fair Value(92.4)1.0 
Changes in:
Receivables from Policyholders(137.7)(132.2)
Reinsurance Recoverables24.4 13.8 
Deferred Policy Acquisition Costs(87.3)(40.5)
Insurance Reserves429.8 (10.3)
Unearned Premiums172.9 136.1 
Income Taxes(121.5)22.0 
Other94.2 (79.1)
Net Cash Provided by Operating Activities307.6 251.3 
6

Kemper Corporation
Consolidated Statements of Cash Flows
(Dollars in Millions)
 (Unaudited)
 Nine Months Ended
Net Cash Provided by Operating Activities (Carryforward from page 6)$307.6 $251.3 
Cash Flows from Investing Activities:
Proceeds from Sales, Calls, and Maturities of Fixed Maturities1,015.6 707.0 
Proceeds from the Sales of Investments:
Equity Securities139.7 436.5 
Real Estate Investments6.2 5.4 
Mortgage Loans53.1 18.6 
Other Investments39.7 26.5 
Purchases of Investments:
Fixed Maturities(1,322.2)(1,009.7)
Equity Securities(106.0)(324.4)
Real Estate Investments(3.6)(0.5)
Company-Owned Life Insurance(100.0)(100.0)
Mortgage Loans(94.0)(22.7)
Other Investments(92.1)(17.9)
Net Purchases of Short-term Investments715.1 (147.9)
Acquisition of Business, Net of Cash Acquired(316.6)— 
Acquisition of Software and Long-lived Assets(43.9)(46.2)
Other10.0 6.0 
Net Cash Provided (Used In) by Investing Activities(99.0)(469.3)
Cash Flows from Financing Activities:
Net Proceeds from Issuance of Long-term Debt— 395.6 
Repayment of Long-Term Debt(50.0)— 
Proceeds from Policyholder Contract Liabilities298.1 391.8 
Repayment of Policyholder Contract Liabilities(328.1)(192.4)
Proceeds from Shares Issued under Employee Stock Purchase Plan3.9 3.1 
Common Stock Repurchases(161.7)(110.4)
Dividends and Dividend Equivalents Paid(60.8)(59.3)
Other3.7 5.0 
Net Cash Provided by (Used In) Financing Activities(294.9)433.4 
Increase (Decrease) in Cash(86.3)215.4 
Cash, Beginning of Year206.1 136.8 
Cash, End of Period$119.8 $352.2 
7


Kemper Corporation
Capital Metrics
(Dollars and Shares in Millions, Except Per Share Amounts)
(Unaudited)
 Sep 30, 2021Jun 30, 2021Mar 31, 2021Dec 31, 2020Sep 30, 2020Jun 30, 2020Mar 31, 2020
Book Value Per Share   
Numerator
Shareholders’ Equity$4,151.2 $4,306.2 $4,339.1 $4,563.4 $4,347.5 $4,187.9 $3,760.8 
Less: Goodwill(1,312.0)(1,311.9)(1,114.0)(1,114.0)(1,114.0)(1,114.0)(1,114.0)
Shareholders’ Equity Excluding Goodwill1
$2,839.2 $2,994.3 $3,225.1 $3,449.4 $3,233.5 $3,073.9 $2,646.8 
Shareholders’ Equity$4,151.2 $4,306.2 $4,339.1 $4,563.4 $4,347.5 $4,187.9 $3,760.8 
Less: Net Unrealized Gains on Fixed Maturities(526.9)(590.5)(438.0)(724.0)(643.7)(588.6)(261.6)
Shareholders’ Equity Excluding Net Unrealized Gains on Fixed Maturities1
$3,624.3 $3,715.7 $3,901.1 $3,839.4 $3,703.8 $3,599.3 $3,499.2 
Less: Goodwill(1,312.0)(1,311.9)(1,114.0)(1,114.0)(1,114.0)(1,114.0)(1,114.0)
Shareholders’ Equity Excluding Net Unrealized Gains on Fixed Maturities and Goodwill1
$2,312.3 $2,403.8 $2,787.1 $2,725.4 $2,589.8 $2,485.3 $2,385.2 
Denominator
Common Shares Issued and Outstanding63.652 63.636 65.016 65.436 65.406 65.282 65.365 
Book Value Per Share$65.22 $67.67 $66.74 $69.74 $66.47 $64.15 $57.54 
Book Value Per Share Excluding Goodwill1
$44.61 $47.05 $49.60 $52.71 $49.44 $47.09 $40.49 
Book Value Per Share Excluding Net Unrealized Gains on Fixed Maturities1
$56.94 $58.39 $60.00 $58.67 $56.63 $55.13 $53.53 
Book Value Per Share Excluding Net Unrealized Gains on Fixed Maturities and Goodwill1
$36.33 $37.77 $42.87 $41.65 $39.60 $38.07 $36.49 
Return on Shareholders’ Equity
Numerator
Rolling 12 Months Net Income$82.8 $280.4 $469.1 $409.9 $437.1 $443.8 $439.8 
Denominator (5-point Average)
5-point Average Shareholders’ Equity$4,341.5 $4,348.8 $4,239.7 $4,166.4 $4,032.5 $3,899.8 $3,726.2 
Rolling 12 Months Return on Average Shareholders' Equity (5-point Average)1.9 %6.4 %11.1 %9.8 %10.8 %11.4 %11.8 %
Return on Shareholders’ Equity Excluding Goodwill1
Denominator (5-point Average)
5-point Average Shareholders’ Equity Excluding Goodwill1
$3,148.3 $3,195.2 $3,125.7 $3,052.4 $2,918.5 $2,785.8 $2,612.7 
Rolling 12 Months Return on Average Shareholders' Equity Excluding Goodwill (5-point Average)1
2.6 %8.8 %15.0 %13.4 %15.0 %15.9 %16.8 %
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
$3,756.8 $3,751.8 $3,708.5 $3,636.0 $3,554.7 $3,477.1 $3,372.9 
 Rolling 12 Months Return on Average Shareholders' Equity Excluding Net Unrealized Gains on Fixed Maturities (5-point Average)1
2.2 %7.5 %12.6 %11.3 %12.3 %12.8 %13.0 %
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
$2,563.7 $2,598.3 $2,594.5 $2,522.0 $2,440.7 $2,363.1 $2,259.4 
 Rolling 12 Months Return on Average Shareholders' Equity Excluding Net Unrealized Gains on Fixed Maturities and Goodwill (5-point Average)1
3.2 %10.8 %18.1 %16.3 %17.9 %18.8 %19.5 %
1 Non-GAAP financial measure. See definitions beginning on page 34.
8


Kemper Corporation
Capital Metrics
(Dollars and Shares in Millions, Except Per Share Amounts)
(Unaudited)
 Sep 30, 2021Jun 30, 2021Mar 31, 2021Dec 31, 2020Sep 30, 2020Jun 30, 2020Mar 31, 2020
Debt and Total Capitalization
Debt$1,122.1 $1,122.3 $1,122.6 $1,172.8 $1,173.0 $777.7 $778.1 
Shareholders’ Equity4,151.2 4,306.2 4,339.1 4,563.4 4,347.5 4,187.9 3,760.8 
Total Capitalization$5,273.3 $5,428.5 $5,461.7 $5,736.2 $5,520.5 $4,965.6 $4,538.9 
Ratio of Debt to Shareholders’ Equity27.0 %26.1 %25.9 %25.7 %27.0 %18.6 %20.7 %
Ratio of Debt to Total Capitalization21.3 %20.7 %20.6 %20.4 %21.2 %15.7 %17.1 %
Parent Company Liquidity
Kemper Holding Company Cash and Investments1
$330.6 $214.8 $607.1 $733.2 $738.7 $270.5 $199.1 
Borrowings Available Under Credit Agreement400.0 400.0 400.0 400.0 400.0 400.0 400.0 
Parent Company Liquidity$730.6 $614.8 $1,007.1 $1,133.2 $1,138.7 $670.5 $599.1 
Capital Returned to Shareholders
Cash Dividends Paid 2
$19.7 $20.4 $21.0 $19.7 $19.7 $19.7 $20.0 
1 Includes Kemper's direct non-insurance subsidiaries
2 Three Months Ended
 
9


Kemper Corporation
Debt Outstanding, FHLB Advances and Ratings
(Dollars in Millions)
(Unaudited)
Sep 30, 2021Jun 30, 2021Mar 31, 2021Dec 31, 2020Sep 30, 2020Jun 30, 2020Mar 31, 2020
Kemper Corporation:
Term Loan due July 5, 2023— — — 49.9 49.9 49.9 49.9 
Senior Notes at Amortized Cost:
5.000% Senior Notes due September 19, 2022277.1 277.6 277.9 278.3 278.7 279.1 279.6 
4.350% Senior Notes due February 15, 2025448.9 448.8 448.9 448.8 448.8 448.7 448.6 
2.400% Senior Notes due September 30, 2030396.1 395.9 395.8 395.8 395.6 — — 
Long-term Debt Outstanding$1,122.1 $1,122.3 $1,122.6 $1,172.8 $1,173.0 $777.7 $778.1 
Federal Home Loan Bank Advances to Insurance Subsidiaries:
Reported as Policyholder Contract Liabilities:
Federal Home Loan Bank of Chicago$378.9 $382.8 $407.5 $407.8 $444.1 $454.3 $364.2 
Reported as Debt Outstanding:
Federal Home Loan Bank of Dallas$— $— $— $— $— $— $— 
Federal Home Loan Bank of Chicago$— $— $— $— $— $— $— 
Federal Home Loan Bank of San Francisco$— $— $— $— $— $— $— 
 A.M. BestMoody’sS&PFitch
As of Date of Financial Supplement
Kemper Debt Ratings:
Senior Unsecured DebtBBBBaa3BBBBBB
Insurance Company Financial Strength Ratings:
Trinity Universal Insurance Company
AA3AA
United Insurance Company of America
AA3A-A-
Reserve National Insurance Company
ANRNRNR
Infinity Insurance Company
AA3ANR



NR - Not Rated

10


Kemper Corporation
Segment Revenues
(Dollars in Millions)
(Unaudited)
 Three Months EndedNine Months Ended
 Sep 30, 2021Jun 30, 2021Mar 31, 2021Dec 31, 2020Sep 30, 2020Jun 30, 2020Mar 31, 2020Sep 30, 2021Sep 30, 2020
Revenues:   
Specialty Property & Casualty Insurance:
Earned Premiums:
Specialty Automobile$920.6 $909.6 $785.4 $796.1 $792.2 $689.8 $753.2 $2,615.6 $2,235.2 
Commercial Automobile107.7 100.7 92.2 86.3 79.2 69.2 69.3 300.6 217.7 
Total Specialty Property & Casualty Insurance Earned Premiums1,028.3 1,010.3 877.6 882.4 871.4 759.0 822.5 2,916.2 2,452.9 
Net Investment Income37.0 42.7 35.0 37.9 30.5 16.9 28.8 114.7 76.2 
Change in Value of Alternative Energy Partnership Investments(11.3)(3.7)(7.3)— — — — (22.3)— 
Other Income1.2 1.0 0.9 0.4 0.4 0.1 0.9 3.1 1.4 
Total Specialty Property & Casualty Insurance Revenues1,055.2 1,050.3 906.2 920.7 902.3 776.0 852.2 3,011.7 2,530.5 
Preferred Property & Casualty Insurance:
Earned Premiums:
Preferred Automobile102.6 103.5 103.0 107.1 110.6 99.1 114.9 309.1 324.6 
Homeowners52.5 51.3 50.8 53.3 55.0 55.6 56.8 154.6 167.4 
Other Personal8.6 8.4 8.4 8.8 8.9 8.9 9.2 25.4 27.0 
Total Preferred Property & Casualty Insurance Earned Premiums163.7 163.2 162.2 169.2 174.5 163.6 180.9 489.1 519.0 
Net Investment Income16.1 19.5 15.9 13.4 10.3 4.3 9.7 51.5 24.3 
Change in Value of Alternative Energy Partnership Investments(6.4)(2.0)(4.1)— — — — (12.5)— 
Other Income— — — — — 0.1 — — 0.1 
Total Preferred Property & Casualty Insurance Revenues173.4 180.7 174.0 182.6 184.8 168.0 190.6 528.1 543.4 
Life & Health Insurance:
Earned Premiums:
Life101.5 100.6 98.1 96.5 96.3 95.7 97.2 300.2 289.2 
Accident and Health47.0 47.9 47.4 50.2 48.9 50.8 49.4 142.3 149.1 
Property15.6 15.7 15.5 15.7 15.4 16.2 16.4 46.8 48.0 
Total Life & Health Insurance Earned Premiums164.1 164.2 161.0 162.4 160.6 162.7 163.0 489.3 486.3 
Net Investment Income48.4 52.4 51.1 52.8 50.7 44.3 51.0 151.9 146.0 
Change in Value of Alternative Energy Partnership Investments(6.1)(2.0)(4.0)— — — — (12.1)— 
Other Income0.1 0.1 0.1 — — 0.5 0.1 0.3 0.6 
Total Life & Health Insurance Revenues206.5 214.7 208.2 215.2 211.3 207.5 214.1 629.4 632.9 
Total Segment Revenues1,435.1 1,445.7 1,288.4 1,318.5 1,298.4 1,151.5 1,256.9 4,169.2 3,706.8 
Income (Loss) from Change in Fair Value of Equity and Convertible Securities(0.6)40.8 52.2 73.1 45.2 71.6 (117.8)92.4 (1.0)
Net Realized Gains (Losses) on Sales of Investments10.1 19.2 13.8 (0.1)10.0 11.7 16.5 43.1 38.2 
Impairment Losses(0.6)(3.2)(4.0)0.5 (1.0)(7.0)(12.0)(7.8)(20.0)
Other11.4 5.2 1.6 0.1 1.1 3.1 85.4 18.2 89.6 
Total Revenues$1,455.4 $1,507.7 $1,352.0 $1,392.1 $1,353.7 $1,230.9 $1,229.0 $4,315.1 $3,813.6 
 

11


Kemper Corporation
Segment Operating Results
(Dollars in Millions)
(Unaudited)
 Three Months EndedNine Months Ended
 Sep 30, 2021Jun 30, 2021Mar 31, 2021Dec 31, 2020Sep 30, 2020Jun 30, 2020Mar 31, 2020Sep 30, 2021Sep 30, 2020
Segment Operating Income (Loss):  
Specialty Property & Casualty Insurance$(91.8)$(122.1)$85.2 $111.5 $149.9 $84.5 $75.0 $(128.7)$309.4 
Preferred Property & Casualty Insurance(17.4)(13.4)3.0 19.8 (41.8)0.8 23.0 (27.8)(18.0)
Life & Health Insurance(5.9)13.2 (0.8)9.6 15.2 19.9 26.5 6.5 61.6 
Total Segment Operating Income (Loss)(115.1)(122.3)87.4 140.9 123.3 105.2 124.5 (150.0)353.0 
Partial Satisfaction of Judgment— — — — — — 89.4 — 89.4 
Other(15.5)(13.8)(11.5)(9.7)(11.0)(4.7)(11.1)(40.8)(26.8)
Corporate and Other Operating Income (Loss)(15.5)(13.8)(11.5)(9.7)(11.0)(4.7)78.3 (40.8)62.6 
Total Operating Income (Loss)(130.6)(136.1)75.9 131.2 112.3 100.5 202.8 (190.8)415.6 
Income From:
Change in Fair Value of Equity and Convertible Securities(0.6)40.8 52.2 73.1 45.2 71.6 (117.8)92.4 (1.0)
Net Realized Gains (Losses) on Sales of Investments10.1 19.2 13.8 (0.1)10.0 11.7 16.5 43.1 38.2 
Impairment Losses(0.6)(3.2)(4.0)0.5 (1.0)(7.0)(12.0)(7.8)(20.0)
Acquisition Related Transaction, Integration and Other Costs(8.1)(10.4)(16.3)(20.0)(14.4)(17.1)(11.8)(34.8)(43.3)
Debt Extinguishment, Pension and Other Charges— — — (64.1)— — — — — 
Income (Loss) before Income Taxes$(129.8)$(89.7)$121.6 $120.6 $152.1 $159.7 $77.7 $(97.9)$389.5 
Segment Net Operating Income (Loss):
Specialty Property & Casualty Insurance$(59.3)$(91.7)$80.1 $91.1 $119.2 $67.5 $60.1 $(70.9)$246.8 
Preferred Property & Casualty Insurance(6.4)(8.3)9.6 16.9 (32.7)0.9 18.4 (5.1)(13.4)
Life & Health Insurance2.8 13.0 7.3 9.4 12.2 16.1 22.3 23.1 50.6 
Total Segment Net Operating Income (Loss)(62.9)(87.0)97.0 117.4 98.7 84.5 100.8 (52.9)284.0 
Corporate and Other Net Operating Income (Loss) From:
Partial Satisfaction of Legal Judgment— — — — — — 70.6 — 70.6 
Other(12.9)(12.4)(9.8)(11.6)(7.8)(5.3)(8.5)(35.1)(21.6)
Corporate and Other Net Operating Income (Loss)(12.9)(12.4)(9.8)(11.6)(7.8)(5.3)62.1 (35.1)49.0 
Adjusted Consolidated Net Operating Income (Loss)(75.8)(99.4)87.2 105.8 90.9 79.2 162.9 (88.0)333.0 
Net Income (Loss) From:
Change in Fair Value of Equity and Convertible Securities(0.5)32.3 41.2 57.8 35.7 56.6 (93.1)73.0 (0.8)
Net Realized Gains (Losses) on Sales of Investments7.9 15.2 10.9 (0.1)7.9 9.3 13.0 34.0 30.2 
Impairment Losses(0.5)(2.5)(3.2)0.4 (0.8)(5.5)(9.5)(6.2)(15.8)
Acquisition Related Transaction, Integration and Other Costs(6.4)(8.2)(12.9)(15.8)(11.4)(13.5)(9.3)(27.5)(34.2)
Debt Extinguishment, Pension and Other Charges— — — (50.6)— — — — — 
Net Income (Loss)$(75.3)$(62.6)$123.2 $97.5 $122.3 $126.1 $64.0 $(14.7)$312.4 
 


12


Kemper Corporation
Catastrophe Frequency and Severity
(Dollars in Millions)
(Unaudited)
Nine Months Ended September 30, 2021
Specialty Property & Casualty Insurance SegmentPreferred Property & Casualty Insurance SegmentLife & Health Insurance SegmentConsolidated
Number of EventsLosses and LAENumber of EventsLosses and LAENumber of EventsLosses and LAENumber of EventsLosses and LAE
Range of Losses and LAE Per Event:
Below $542 $13.2 45 $36.5 34 $4.7 49 $48.0 
$5 - $10— — 3 20.4 1 5.4 2 15.9 
$10 - $15— — 1 14.7 1 — — — 
$15 - $20— — — — — — 2 31.0 
$20 - $25— — — — — — — — 
Greater Than $25— — — — — — — — 
Total42 $13.2 49 $71.6 36 $10.1 53 $94.9 
Nine Months Ended September 30, 2020
Specialty Property & Casualty Insurance SegmentPreferred Property & Casualty Insurance SegmentLife & Health Insurance SegmentConsolidated
Number of EventsLosses and LAENumber of EventsLosses and LAENumber of EventsLosses and LAENumber of EventsLosses and LAE
Range of Losses and LAE Per Event:
Below $548 $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— — — — — — — — 
Total48 $6.8 53 $87.3 7 $7.1 55 $101.2 
13

Kemper Corporation
Specialty Property & Casualty Insurance Segment
Results of Operations and Selected Financial Information
(Dollars in Millions)
(Unaudited)
 Three Months EndedNine Months Ended
 Sep 30, 2021Jun 30, 2021Mar 31, 2021Dec 31, 2020Sep 30, 2020Jun 30, 2020Mar 31, 2020Sep 30, 2021Sep 30, 2020
Results of Operations   
Net Premiums Written$1,024.3 $1,082.0 $972.0 $829.2 $914.2 $780.9 $911.2 $3,078.3 $2,606.3 
Total Specialty P&C
Specialty Personal Automobile920.6 909.6 785.4 796.1 792.2 689.8 753.2 2,615.6 2,235.2 
Commercial Automobile107.7 100.7 92.2 86.3 79.2 69.2 69.3 300.6 217.7 
Earned Premium$1,028.3 $1,010.3 $877.6 $882.4 $871.4 $759.0 $822.5 $2,916.2 $2,452.9 
Net Investment Income37.0 42.7 35.0 37.9 30.5 16.9 28.8 114.7 76.2 
Change in Value of Alternative Energy Partnership Investments(11.3)(3.7)(7.3)— — — — (22.3)— 
Other Income1.2 1.0 0.9 0.4 0.4 0.1 0.9 3.1 1.4 
Total Revenues1,055.2 1,050.3 906.2 920.7 902.3 776.0 852.2 3,011.7 2,530.5 
Incurred Losses and LAE related to:
Current Year:
Non-catastrophe Losses and LAE924.4 877.4 650.0 626.2 589.0 515.8 619.8 2,451.8 1,724.6 
Catastrophe Losses and LAE3.4 8.1 1.7 5.5 2.1 4.5 0.2 13.2 6.8 
Prior Years:
Non-catastrophe Losses and LAE25.1 81.3 (1.4)(1.7)1.9 9.6 5.3 105.0 16.8 
Catastrophe Losses and LAE(0.1)— 0.4 0.1 (0.1)— 0.2 0.3 0.1 
Total Incurred Losses and LAE952.8 966.8 650.7 630.1 592.9 529.9 625.5 2,570.3 1,748.3 
Insurance Expenses194.2 205.6 170.3 179.1 159.5 161.2 152.1 570.1 472.8 
Other Expenses— — — — — 0.4 (0.4)— — 
Operating Income (Loss)(91.8)(122.1)85.2 111.5 149.9 84.5 75.0 (128.7)309.4 
Income Tax Benefit (Expense)32.5 30.4 (5.1)(20.4)(30.7)(17.0)(14.9)57.8 (62.6)
Segment Net Operating Income (Loss) $(59.3)$(91.7)$80.1 $91.1 $119.2 $67.5 $60.1 $(70.9)$246.8 
Ratios Based On Earned Premiums
Current Year Non-catastrophe Losses and LAE Ratio90.0 %86.9 %74.1 %71.0 %67.6 %67.9 %75.4 %84.0 %70.3 %
Current Year Catastrophe Losses and LAE Ratio0.3 0.8 0.2 0.6 0.2 0.6 — 0.5 0.3 
Prior Years Non-catastrophe Losses and LAE Ratio2.4 8.0 (0.2)(0.2)0.2 1.3 0.6 3.6 0.7 
Prior Years Catastrophe Losses and LAE Ratio— — — — — — — — — 
Total Incurred Loss and LAE Ratio92.7 95.7 74.1 71.4 68.0 69.8 76.0 88.1 71.3 
Insurance Expense Ratio18.9 20.4 19.4 20.3 18.3 21.2 18.5 19.5 19.3 
Combined Ratio111.6 %116.1 %93.5 %91.7 %86.3 %91.0 %94.5 %107.6 %90.6 %
Underlying Combined Ratio 1
Current Year Non-catastrophe Losses and LAE Ratio90.0 %86.9 %74.1 %71.0 %67.6 %67.9 %75.4 %84.0 %70.3 %
Insurance Expense Ratio18.9 20.4 19.4 20.3 18.3 21.2 18.5 19.5 19.3 
Underlying Combined Ratio108.9 %107.3 %93.5 %91.3 %85.9 %89.1 %93.9 %103.5 %89.6 %
Non-GAAP Measure Reconciliation
Combined Ratio as Reported111.6 %116.1 %93.5 %91.7 %86.3 %91.0 %94.5 %107.6 %90.6 %
Less:
Current Year Catastrophe Losses and LAE Ratio0.3 0.8 0.2 0.6 0.2 0.6 — 0.5 0.3 
Prior Years Non-catastrophe Losses and LAE Ratio2.4 8.0 (0.2)(0.2)0.2 1.3 0.6 3.6 0.7 
Prior Years Catastrophe Losses and LAE Ratio— — — — — — — — — 
Underlying Combined Ratio108.9 %107.3 %93.5 %91.3 %85.9 %89.1 %93.9 %103.5 %89.6 %
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.
14


Kemper Corporation
Specialty Property & Casualty Insurance Segment
Results of Operations and Selected Financial Information (continued)
(Dollars in Millions)
(Unaudited)
Sep 30, 2021Jun 30, 2021Mar 31, 2021Dec 31, 2020Sep 30, 2020Jun 30, 2020Mar 31, 2020
Insurance Reserves:
Non-Standard Automobile$1,841.1 $1,703.1 $1,304.7 $1,308.3 $1,271.9 $1,252.6 $1,326.3 
Commercial Automobile302.4 281.6 257.2 236.5 223.0 221.0 215.1 
Insurance Reserves$2,143.5 $1,984.7 $1,561.9 $1,544.8 $1,494.9 $1,473.6 $1,541.4 
Insurance Reserves:
Loss and Allocated LAE Reserves:
Case and Allocated LAE$1,071.1 $1,005.8 $799.7 $744.6 $718.8 $667.9 $716.0 
Incurred but Not Reported881.6 810.2 614.1 653.6 631.8 660.8 679.1 
Total Loss Reserves1,952.7 1,816.0 1,413.8 1,398.2 1,350.6 1,328.7 1,395.1 
Unallocated LAE Reserves190.8 168.7 148.1 146.6 144.3 144.9 146.3 
Insurance Reserves$2,143.5 $1,984.7 $1,561.9 $1,544.8 $1,494.9 $1,473.6 $1,541.4 

15

Kemper Corporation
Specialty Property & Casualty Insurance Segment
Specialty Personal Automobile Insurance - Results of Operations and Selected Financial Information
(Dollars in Millions)
(Unaudited)
 Three Months EndedNine Months Ended
 Sep 30, 2021Jun 30, 2021Mar 31, 2021Dec 31, 2020Sep 30, 2020Jun 30, 2020Mar 31, 2020Sep 30, 2021Sep 30, 2020
Results of Operations   
Net Premiums Written$902.7 $964.3 $861.5 $736.3 $819.4 $700.5 $830.3 $2,728.5 $2,350.2 
Earned Premiums$920.6 $909.6 $785.4 $796.1 $792.2 $689.8 $753.2 $2,615.6 $2,235.2 
Net Investment Income30.9 35.4 29.1 32.4 26.2 15.2 24.8 95.4 66.2 
Change in Value of Alternative Energy Partnership Investments(8.9)(2.9)(5.8)— — — — (17.6)— 
Other Income1.2 1.0 0.9 0.4 0.4 0.1 0.8 3.1 1.3 
Total Revenues943.8 943.1 809.6 828.9 818.8 705.1 778.8 2,696.5 2,302.7 
Incurred Losses and LAE related to:
Current Year:
Non-catastrophe Losses and LAE843.9 805.1 586.4 569.1 543.4 472.4 576.0 2,235.4 1,591.8 
Catastrophe Losses and LAE3.1 7.4 1.6 5.2 2.0 4.2 0.2 12.1 6.4 
Prior Years:
Non-catastrophe Losses and LAE25.1 76.0 (4.4)(3.1)2.1 11.2 17.8 96.7 31.1 
Catastrophe Losses and LAE(0.1)— 0.4 — (0.1)0.1 0.2 0.3 0.2 
Total Incurred Losses and LAE872.0 888.5 584.0 571.2 547.4 487.9 594.2 2,344.5 1,629.5 
Insurance Expenses176.0 187.7 155.3 162.8 145.6 146.7 139.2 519.0 431.5 
Other Expenses— — — — — 0.4 (0.4)— — 
Operating Income (Loss)(104.2)(133.1)70.3 94.9 125.8 70.1 45.8 (167.0)241.7 
Income Benefit (Expense)32.4 31.8 (4.6)(17.5)(25.7)(14.2)(8.8)59.6 (48.7)
Total Product Line Net Operating Income (Loss)$(71.8)$(101.3)$65.7 $77.4 $100.1 $55.9 $37.0 $(107.4)$193.0 
Ratios Based On Earned Premiums
Current Year Non-catastrophe Losses and LAE Ratio91.7 %88.5 %74.7 %71.4 %68.5 %68.5 %76.5 %85.4 %71.2 %
Current Year Catastrophe Losses and LAE Ratio0.3 0.8 0.2 0.7 0.3 0.6 — 0.5 0.3 
Prior Years Non-catastrophe Losses and LAE Ratio2.7 8.4 (0.6)(0.4)0.3 1.6 2.4 3.7 1.4 
Prior Years Catastrophe Losses and LAE Ratio— — 0.1 — — — — — — 
Total Incurred Loss and LAE Ratio94.7 97.7 74.4 71.7 69.1 70.7 78.9 89.6 72.9 
Insurance Expense Ratio19.1 20.6 19.8 20.4 18.4 21.3 18.5 19.8 19.3 
Combined Ratio113.8 %118.3 %94.2 %92.1 %87.5 %92.0 %97.4 %109.4 %92.2 %
Underlying Combined Ratio 1
Current Year Non-catastrophe Losses and LAE Ratio91.7 %88.5 %74.7 %71.4 %68.5 %68.5 %76.5 %85.4 %71.2 %
Insurance Expense Ratio19.1 20.6 19.8 20.4 18.4 21.3 18.5 19.8 19.3 
Underlying Combined Ratio110.8 %109.1 %94.5 %91.8 %86.9 %89.8 %95.0 %105.2 %90.5 %
Non-GAAP Measure Reconciliation
Combined Ratio113.8 %118.3 %94.2 %92.1 %87.5 %92.0 %97.4 %109.4 %92.2 %
Less:
Current Year Catastrophe Losses and LAE Ratio0.3 0.8 0.2 0.7 0.3 0.6 — 0.5 0.3 
Prior Years Non-catastrophe Losses and LAE Ratio2.7 8.4 (0.6)(0.4)0.3 1.6 2.4 3.7 1.4 
Prior Years Catastrophe Losses and LAE Ratio— — 0.1 — — — — — — 
Underlying Combined Ratio110.8 %109.1 %94.5 %91.8 %86.9 %89.8 %95.0 %105.2 %90.5 %
1 Underlying Combined Ratio is a non-GAAP measure, which is computed as the difference between three operating ratios: the combined ratio, the effect of catastrophes (excluding development of prior-year catastrophes) on the combined ratio and the effect of prior-year reserve development at the reporting date (including development on prior-year catastrophes) on the combined ratio.
16

Kemper Corporation
Specialty Property & Casualty Insurance Segment
Commercial Automobile Insurance - Results of Operations and Selected Financial Information
(Dollars in Millions)
(Unaudited)
 Three Months EndedNine Months Ended
 Sep 30, 2021Jun 30, 2021Mar 31, 2021Dec 31, 2020Sep 30, 2020Jun 30, 2020Mar 31, 2020Sep 30, 2021Sep 30, 2020
Results of Operations   
Net Premiums Written$121.6 $117.7 $110.5 $92.9 $94.8 $80.4 $80.9 $349.8 $256.1 
Earned Premiums$107.7 $100.7 $92.2 $86.3 $79.2 $69.2 $69.3 $300.6 $217.7 
Net Investment Income6.1 7.3 5.9 5.5 4.3 1.7 4.0 19.3 10.0 
Change in Value of Alternative Energy Partnership Investments(2.4)(0.8)(1.5)— — — — (4.7)— 
Other Income— — — — — — 0.1 — 0.1 
Total Revenues111.4 107.2 96.6 91.8 83.5 70.9 73.4 315.2 227.8 
Incurred Losses and LAE related to:
Current Year:
Non-catastrophe Losses and LAE80.5 72.3 63.6 57.1 45.6 43.4 43.8 216.4 132.8 
Catastrophe Losses and LAE0.3 0.7 0.1 0.3 0.1 0.3 — 1.1 0.4 
Prior Years:
Non-catastrophe Losses and LAE— 5.3 3.0 1.4 (0.2)(1.6)(12.5)8.3 (14.3)
Catastrophe Losses and LAE— — — 0.1 — (0.1)— — (0.1)
Total Incurred Losses and LAE80.8 78.3 66.7 58.9 45.5 42.0 31.3 225.8 118.8 
Insurance Expenses18.2 17.9 15.0 16.3 13.9 14.5 12.9 51.1 41.3 
Operating Income (Loss)12.4 11.0 14.9 16.6 24.1 14.4 29.2 38.3 67.7 
Income Tax Benefit (Expense)0.1 (1.4)(0.5)(2.9)(5.0)(2.8)(6.1)(1.8)(13.9)
Total Product Line Net Operating Income (Loss)$12.5 $9.6 $14.4 $13.7 $19.1 $11.6 $23.1 $36.5 $53.8 
Ratios Based On Earned Premiums
Current Year Non-catastrophe Losses and LAE Ratio74.7 %71.8 %68.9 %66.3 %57.6 %62.7 %63.2 %71.9 %61.0 %
Current Year Catastrophe Losses and LAE Ratio0.3 0.7 0.1 0.3 0.1 0.4 — 0.4 0.2 
Prior Years Non-catastrophe Losses and LAE Ratio— 5.3 3.3 1.6 (0.3)(2.3)(18.0)2.8 (6.6)
Prior Years Catastrophe Losses and LAE Ratio— — — 0.1 — (0.1)— — — 
Total Incurred Loss and LAE Ratio75.0 77.8 72.3 68.3 57.4 60.7 45.2 75.1 54.6 
Insurance Expense Ratio16.9 17.8 16.3 18.9 17.6 21.0 18.6 17.0 19.0 
Combined Ratio91.9 %95.6 %88.6 %87.2 %75.0 %81.7 %63.8 %92.1 %73.6 %
Underlying Combined Ratio 1
Current Year Non-catastrophe Losses and LAE Ratio74.7 %71.8 %68.9 %66.3 %57.6 %62.7 %63.2 %71.9 %61.0 %
Insurance Expense Ratio16.9 17.8 16.3 18.9 17.6 21.0 18.6 17.0 19.0 
Underlying Combined Ratio91.6 %89.6 %85.2 %85.2 %75.2 %83.7 %81.8 %88.9 %80.0 %
Non-GAAP Measure Reconciliation
Combined Ratio91.9 %95.6 %88.6 %87.2 %75.0 %81.7 %63.8 %92.1 %73.6 %
Less:
Current Year Catastrophe Losses and LAE Ratio0.3 0.7 0.1 0.3 0.1 0.4 — 0.4 0.2 
Prior Years Non-catastrophe Losses and LAE Ratio— 5.3 3.3 1.6 (0.3)(2.3)(18.0)2.8 (6.6)
Prior Years Catastrophe Losses and LAE Ratio— — — 0.1 — (0.1)— — — 
Underlying Combined Ratio91.6 %89.6 %85.2 %85.2 %75.2 %83.7 %81.8 %88.9 %80.0 %
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.
17

Kemper Corporation
Preferred Property & Casualty Insurance Segment
Results of Operations and Selected Financial Information
(Dollars in Millions)
(Unaudited)
 Three Months EndedNine Months Ended
 Sep 30, 2021Jun 30, 2021Mar 31, 2021Dec 31, 2020Sep 30, 2020Jun 30, 2020Mar 31, 2020Sep 30, 2021Sep 30, 2020
Results of Operations   
Net Premiums Written$164.8 $169.6 $154.4 $155.2 $172.2 $161.5 $164.1 $488.8 $497.8 
Earned Premiums$163.7 $163.2 $162.2 $169.2 $174.5 $163.6 $180.9 $489.1 $519.0 
Net Investment Income16.1 19.5 15.9 13.4 10.3 4.3 9.7 51.5 24.3 
Change in Value of Alternative Energy Partnership Investments(6.4)(2.0)(4.1)— — — — (12.5)— 
Other Income— — — — — 0.1 — — 0.1 
Total Revenues173.4 180.7 174.0 182.6 184.8 168.0 190.6 528.1 543.4 
Incurred Losses and LAE related to:
Current Year:
Non-catastrophe Losses and LAE115.6 116.2 96.2 107.1 102.8 82.5 108.5 328.0 293.8 
Catastrophe Losses and LAE23.4 24.2 24.0 (5.3)61.9 20.6 4.8 71.6 87.3 
Prior Years:
Non-catastrophe Losses and LAE— 5.0 0.1 9.5 6.3 8.2 (3.3)5.1 11.2 
Catastrophe Losses and LAE0.1 (3.4)(0.3)0.1 0.1 0.4 (1.1)(3.6)(0.6)
Total Incurred Losses and LAE139.1 142.0 120.0 111.4 171.1 111.7 108.9 401.1 391.7 
Insurance Expenses51.7 52.1 51.0 51.4 55.5 55.5 58.7 154.8 169.7 
Operating Income (Loss)(17.4)(13.4)3.0 19.8 (41.8)0.8 23.0 (27.8)(18.0)
Income Tax Benefit (Expense)11.0 5.1 6.6 (2.9)9.1 0.1 (4.6)22.7 4.6 
Segment Net Operating Income (Loss)$(6.4)$(8.3)$9.6 $16.9 $(32.7)$0.9 $18.4 $(5.1)$(13.4)
Ratios Based On Earned Premiums
Current Year Non-catastrophe Losses and LAE Ratio70.6 %71.2 %59.3 %63.2 %58.9 %50.5 %59.9 %67.1 %56.6 %
Current Year Catastrophe Losses and LAE Ratio14.3 14.8 14.8 (3.1)35.5 12.6 2.7 14.6 16.8 
Prior Years Non-catastrophe Losses and LAE Ratio— 3.1 0.1 5.6 3.6 5.0 (1.8)1.0 2.2 
Prior Years Catastrophe Losses and LAE Ratio0.1 (2.1)(0.2)0.1 0.1 0.2 (0.6)(0.7)(0.1)
Total Incurred Loss and LAE Ratio85.0 87.0 74.0 65.8 98.1 68.3 60.2 82.0 75.5 
Insurance Expense Ratio31.6 31.9 31.4 30.4 31.8 33.9 32.4 31.6 32.7 
Combined Ratio116.6 %118.9 %105.4 %96.2 %129.9 %102.2 %92.6 %113.6 %108.2 %
Underlying Combined Ratio 1
Current Year Non-catastrophe Losses and LAE Ratio70.6 %71.2 %59.3 %63.2 %58.9 %50.5 %59.9 %67.1 %56.6 %
Insurance Expense Ratio31.6 31.9 31.4 30.4 31.8 33.9 32.4 31.6 32.7 
Underlying Combined Ratio102.2 %103.1 %90.7 %93.6 %90.7 %84.4 %92.3 %98.7 %89.3 %
Non-GAAP Measure Reconciliation
Combined Ratio as Reported116.6 %118.9 %105.4 %96.2 %129.9 %102.2 %92.6 %113.6 %108.2 %
Less:
Current Year Catastrophe Losses and LAE Ratio14.3 14.8 14.8 (3.1)35.5 12.6 2.7 14.6 16.8 
Prior Years Non-catastrophe Losses and LAE Ratio— 3.1 0.1 5.6 3.6 5.0 (1.8)1.0 2.2 
Prior Years Catastrophe Losses and LAE Ratio0.1 (2.1)(0.2)0.1 0.1 0.2 (0.6)(0.7)(0.1)
Underlying Combined Ratio102.2 %103.1 %90.7 %93.6 %90.7 %84.4 %92.3 %98.7 %89.3 %
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.
18


Kemper Corporation
Preferred Property & Casualty Insurance Segment
Results of Operations and Selected Financial Information (continued)
(Dollars in Millions)
(Unaudited)
Sep 30, 2021Jun 30, 2021Mar 31, 2021Dec 31, 2020Sep 30, 2020Jun 30, 2020Mar 31, 2020
Insurance Reserves:
Preferred Automobile$290.0 $282.9 $275.9 $281.3 $265.2 $252.8 $254.8 
Homeowners108.5 110.7 107.6 104.0 137.9 99.5 90.8 
Other Personal30.1 31.0 30.7 26.3 25.5 25.7 28.8 
Insurance Reserves$428.6 $424.6 $414.2 $411.6 $428.6 $378.0 $374.4 
Insurance Reserves:
Loss and Allocated LAE Reserves:
Case and Allocated LAE$280.8 $282.3 $282.0 $262.2 $266.8 $230.7 $231.1 
Incurred but Not Reported120.4 116.1 105.6 122.0 134.2 119.6 115.1 
Total Loss Reserves401.2 398.4 387.6 384.2 401.0 350.3 346.2 
Unallocated LAE Reserves27.4 26.2 26.6 27.4 27.6 27.7 28.2 
Insurance Reserves$428.6 $424.6 $414.2 $411.6 $428.6 $378.0 $374.4 

19

Kemper Corporation
Preferred Property & Casualty Insurance Segment
Preferred Personal Automobile Insurance - Results of Operations and Selected Financial Information
(Dollars in Millions)
(Unaudited)
 Three Months EndedNine Months Ended
 Sep 30, 2021Jun 30, 2021Mar 31, 2021Dec 31, 2020Sep 30, 2020Jun 30, 2020Mar 31, 2020Sep 30, 2021Sep 30, 2020
Results of Operations   
Net Premiums Written$99.9 $104.4 $100.4 $98.8 $107.2 $95.6 $105.9 $304.7 $308.7 
Earned Premiums$102.6 $103.5 $103.0 $107.1 $110.6 $99.1 $114.9 $309.1 $324.6 
Net Investment Income7.4 9.0 7.3 7.9 6.1 2.5 5.8 23.7 14.4 
Change in Value of Alternative Energy Partnership Investments(3.0)(0.9)(1.9)— — — — (5.8)— 
Other Income— — — — — 0.1 — — 0.1 
Total Revenues107.0 111.6 108.4 115.0 116.7 101.7 120.7 327.0 339.1 
Incurred Losses and LAE related to:
Current Year:
Non-catastrophe Losses and LAE84.8 81.6 67.8 78.0 72.2 53.8 75.9 234.2 201.9 
Catastrophe Losses and LAE2.7 2.8 0.6 0.4 1.8 2.0 0.2 6.1 4.0 
Prior Years:
Non-catastrophe Losses and LAE0.1 3.6 1.2 9.9 5.9 9.7 2.2 4.9 17.8 
Catastrophe Losses and LAE0.1 (0.2)0.1 (0.4)(0.2)(0.3)(0.1)— (0.6)
Total Incurred Losses and LAE87.7 87.8 69.7 87.9 79.7 65.2 78.2 245.2 223.1 
Insurance Expenses32.7 33.6 32.8 32.3 34.7 34.0 36.1 99.1 104.8 
Operating Income (Loss)(13.4)(9.8)5.9 (5.2)2.3 2.5 6.4 (17.3)11.2 
Income Tax Benefit (Expense)6.2 3.1 2.1 1.9 (0.3)(0.4)(1.2)11.4 (1.9)
Total Product Line Net Operating Income (Loss)$(7.2)$(6.7)$8.0 $(3.3)$2.0 $2.1 $5.2 $(5.9)$9.3 
Ratios Based On Earned Premiums
Current Year Non-catastrophe Losses and LAE Ratio82.7 %78.8 %65.8 %72.9 %65.4 %54.3 %66.1 %75.7 %62.2 %
Current Year Catastrophe Losses and LAE Ratio2.6 2.7 0.6 0.4 1.6 2.0 0.2 2.0 1.2 
Prior Years Non-catastrophe Losses and LAE Ratio0.1 3.5 1.2 9.2 5.3 9.8 1.9 1.6 5.5 
Prior Years Catastrophe Losses and LAE Ratio0.1 (0.2)0.1 (0.4)(0.2)(0.3)(0.1)— (0.2)
Total Incurred Loss and LAE Ratio85.5 84.8 67.7 82.1 72.1 65.8 68.1 79.3 68.7 
Insurance Expense Ratio31.9 32.5 31.8 30.2 31.4 34.3 31.4 32.1 32.3 
Combined Ratio117.4 %117.3 %99.5 %112.3 %103.5 %100.1 %99.5 %111.4 %101.0 %
Underlying Combined Ratio 1
Current Year Non-catastrophe Losses and LAE Ratio82.7 %78.8 %65.8 %72.9 %65.4 %54.3 %66.1 %75.7 %62.2 %
Insurance Expense Ratio31.9 32.5 31.8 30.2 31.4 34.3 31.4 32.1 32.3 
Underlying Combined Ratio114.6 %111.3 %97.6 %103.1 %96.8 %88.6 %97.5 %107.8 %94.5 %
Non-GAAP Measure Reconciliation
Combined Ratio117.4 %117.3 %99.5 %112.3 %103.5 %100.1 %99.5 %111.4 %101.0 %
Less:
Current Year Catastrophe Losses and LAE Ratio2.6 2.7 0.6 0.4 1.6 2.0 0.2 2.0 1.2 
Prior Years Non-catastrophe Losses and LAE Ratio0.1 3.5 1.2 9.2 5.3 9.8 1.9 1.6 5.5 
Prior Years Catastrophe Losses and LAE Ratio0.1 (0.2)0.1 (0.4)(0.2)(0.3)(0.1)— (0.2)
Underlying Combined Ratio114.6 %111.3 %97.6 %103.1 %96.8 %88.6 %97.5 %107.8 %94.5 %
1 Underlying Combined Ratio is a non-GAAP measure, which is computed as the difference between three operating ratios: the combined ratio, the effect of catastrophes (excluding development of prior-year catastrophes) on the combined ratio and the effect of prior-year reserve development at the reporting date (including development on prior-year catastrophes) on the combined ratio.
20

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 EndedNine Months Ended
 Sep 30, 2021Jun 30, 2021Mar 31, 2021Dec 31, 2020Sep 30, 2020Jun 30, 2020Mar 31, 2020Sep 30, 2021Sep 30, 2020
Results of Operations   
Net Premiums Written$64.9 $65.2 $54.0 $56.4 $65.0 $65.9 $58.2 $184.1 $189.1 
Earned Premiums$61.1 $59.7 $59.2 $62.1 $63.9 $64.5 $66.0 $180.0 $194.4 
Net Investment Income8.7 10.5 8.6 5.5 4.2 1.8 3.9 27.8 9.9 
Change in Value of Alternative Energy Partnership Investments(3.4)(1.1)(2.2)— — — — (6.7)— 
Total Revenues66.4 69.1 65.6 67.6 68.1 66.3 69.9 201.1 204.3 
Incurred Losses and LAE related to:
Current Year:
Non-catastrophe Losses and LAE30.8 34.6 28.4 29.1 30.6 28.7 32.6 93.8 91.9 
Catastrophe Losses and LAE20.7 21.4 23.4 (5.7)60.1 18.6 4.6 65.5 83.3 
Prior Years:
Non-catastrophe Losses and LAE(0.1)1.4 (1.1)(0.4)0.4 (1.5)(5.5)0.2 (6.6)
Catastrophe Losses and LAE— (3.2)(0.4)0.5 0.3 0.7 (1.0)(3.6)— 
Total Incurred Losses and LAE51.4 54.2 50.3 23.5 91.4 46.5 30.7 155.9 168.6 
Insurance Expenses19.0 18.5 18.2 19.1 20.8 21.5 22.6 55.7 64.9 
Operating Income (Loss)(4.0)(3.6)(2.9)25.0 (44.1)(1.7)16.6 (10.5)(29.2)
Income Tax Benefit (Expense)4.8 2.0 4.5 (4.8)9.4 0.5 (3.4)11.3 6.5 
Total Product Line Net Operating Income (Loss)$0.8 $(1.6)$1.6 $20.2 $(34.7)$(1.2)$13.2 $0.8 $(22.7)
Ratios Based On Earned Premiums
Current Year Non-catastrophe Losses and LAE Ratio50.4 %58.1 %48.1 %46.8 %47.8 %44.5 %49.3 %52.1 %47.3 %
Current Year Catastrophe Losses and LAE Ratio33.9 35.8 39.5 (9.2)94.1 28.8 7.0 36.4 42.8 
Prior Years Non-catastrophe Losses and LAE Ratio(0.2)2.3 (1.9)(0.6)0.6 (2.3)(8.3)0.1 (3.4)
Prior Years Catastrophe Losses and LAE Ratio— (5.4)(0.7)0.8 0.5 1.1 (1.5)(2.0)— 
Total Incurred Loss and LAE Ratio84.1 90.8 85.0 37.8 143.0 72.1 46.5 86.6 86.7 
Insurance Expense Ratio31.1 31.0 30.7 30.8 32.6 33.3 34.2 30.9 33.4 
Combined Ratio115.2 %121.8 %115.7 %68.6 %175.6 %105.4 %80.7 %117.5 %120.1 %
Underlying Combined Ratio 1
Current Year Non-catastrophe Losses and LAE Ratio50.4 %58.1 %48.1 %46.8 %47.8 %44.5 %49.3 %52.1 %47.3 %
Insurance Expense Ratio31.1 31.0 30.7 30.8 32.6 33.3 34.2 30.9 33.4 
Underlying Combined Ratio81.5 %89.1 %78.8 %77.6 %80.4 %77.8 %83.5 %83.0 %80.7 %
Non-GAAP Measure Reconciliation
Combined Ratio115.2 %121.8 %115.7 %68.6 %175.6 %105.4 %80.7 %117.5 %120.1 %
Less:
Current Year Catastrophe Losses and LAE Ratio33.9 35.8 39.5 (9.2)94.1 28.8 7.0 36.4 42.8 
Prior Years Non-catastrophe Losses and LAE Ratio(0.2)2.3 (1.9)(0.6)0.6 (2.3)(8.3)0.1 (3.4)
Prior Years Catastrophe Losses and LAE Ratio— (5.4)(0.7)0.8 0.5 1.1 (1.5)(2.0)— 
Underlying Combined Ratio81.5 %89.1 %78.8 %77.6 %80.4 %77.8 %83.5 %83.0 %80.7 %
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.
21


Kemper Corporation
Preferred Property & Casualty Insurance Segment
Homeowners Insurance - Results of Operations and Selected Financial Information
(Dollars in Millions)
(Unaudited)
 Three Months EndedNine Months Ended
 Sep 30, 2021Jun 30, 2021Mar 31, 2021Dec 31, 2020Sep 30, 2020Jun 30, 2020Mar 31, 2020Sep 30, 2021Sep 30, 2020
Results of Operations   
Net Premiums Written$56.1 $56.3 $46.1 $48.3 $55.7 $57.2 $49.9 $158.5 $162.8 
Earned Premiums$52.5 $51.3 $50.8 $53.3 $55.0 $55.6 $56.8 $154.6 $167.4 
Net Investment Income7.9 9.6 7.8 5.0 3.8 1.6 3.6 25.3 9.0 
Change in Value of Alternative Energy Partnership Investments(3.1)(1.0)(2.0)— — — — (6.1)— 
Total Revenues57.3 59.9 56.6 58.3 58.8 57.2 60.4 173.8 176.4 
Incurred Losses and LAE related to:
Current Year:
Non-catastrophe Losses and LAE26.6 30.5 24.2 26.5 28.1 25.4 28.7 81.3 82.2 
Catastrophe Losses and LAE20.4 21.8 22.0 (10.1)58.6 18.2 4.5 64.2 81.3 
Prior Years:
Non-catastrophe Losses and LAE(0.2)0.2 (2.5)0.3 2.0 (0.8)(4.3)(2.5)(3.1)
Catastrophe Losses and LAE0.1 (1.8)(0.1)0.6 0.2 0.6 (0.7)(1.8)0.1 
Total Incurred Losses and LAE46.9 50.7 43.6 17.3 88.9 43.4 28.2 141.2 160.5 
Insurance Expenses16.3 16.1 15.7 16.6 18.2 18.6 19.5 48.1 56.3 
Operating Income (Loss)(5.9)(6.9)(2.7)24.4 (48.3)(4.8)12.7 (15.5)(40.4)
Income Tax Benefit (Expense)4.8 2.6 4.1 (4.7)10.3 1.1 (2.6)11.5 8.8 
Total Product Line Net Operating Income (Loss)$(1.1)$(4.3)$1.4 $19.7 $(38.0)$(3.7)$10.1 $(4.0)$(31.6)
Ratios Based On Earned Premiums
Current Year Non-catastrophe Losses and LAE Ratio50.6 %59.4 %47.6 %49.7 %51.1 %45.7 %50.5 %52.6 %49.1 %
Current Year Catastrophe Losses and LAE Ratio38.9 42.5 43.3 (18.9)106.5 32.7 7.9 41.5 48.6 
Prior Years Non-catastrophe Losses and LAE Ratio(0.4)0.4 (4.9)0.6 3.6 (1.4)(7.6)(1.6)(1.9)
Prior Years Catastrophe Losses and LAE Ratio0.2 (3.5)(0.2)1.1 0.4 1.1 (1.2)(1.2)0.1 
Total Incurred Loss and LAE Ratio89.3 98.8 85.8 32.5 161.6 78.1 49.6 91.3 95.9 
Insurance Expense Ratio31.0 31.4 30.9 31.1 33.1 33.5 34.3 31.1 33.6 
Combined Ratio120.3 %130.2 %116.7 %63.6 %194.7 %111.6 %83.9 %122.4 %129.5 %
Underlying Combined Ratio 1
Current Year Non-catastrophe Losses and LAE Ratio50.6 %59.4 %47.6 %49.7 %51.1 %45.7 %50.5 %52.6 %49.1 %
Insurance Expense Ratio31.0 31.4 30.9 31.1 33.1 33.5 34.3 31.1 33.6 
Underlying Combined Ratio81.6 %90.8 %78.5 %80.8 %84.2 %79.2 %84.8 %83.7 %82.7 %
Non-GAAP Measure Reconciliation
Combined Ratio120.3 %130.2 %116.7 %63.6 %194.7 %111.6 %83.9 %122.4 %129.5 %
Less:
Current Year Catastrophe Losses and LAE Ratio38.9 42.5 43.3 (18.9)106.5 32.7 7.9 41.5 48.6 
Prior Years Non-catastrophe Losses and LAE Ratio(0.4)0.4 (4.9)0.6 3.6 (1.4)(7.6)(1.6)(1.9)
Prior Years Catastrophe Losses and LAE Ratio0.2 (3.5)(0.2)1.1 0.4 1.1 (1.2)(1.2)0.1 
Underlying Combined Ratio81.6 %90.8 %78.5 %80.8 %84.2 %79.2 %84.8 %83.7 %82.7 %
1 Underlying Combined Ratio is a non-GAAP measure, which is computed as the difference between three operating ratios: the combined ratio, the effect of catastrophes (excluding development of prior-year catastrophes) on the combined ratio and the effect of prior-year reserve development at the reporting date (including development on prior-year catastrophes) on the combined ratio.
22

Kemper Corporation
Preferred Property & Casualty Insurance Segment
Other Personal Insurance - Results of Operations and Selected Financial Information
(Dollars in Millions)
(Unaudited)
 Three Months EndedNine Months Ended
 Sep 30, 2021Jun 30, 2021Mar 31, 2021Dec 31, 2020Sep 30, 2020Jun 30, 2020Mar 31, 2020Sep 30, 2021Sep 30, 2020
Results of Operations   
Net Premiums Written$8.8 $8.9 $7.9 $8.1 $9.3 $8.7 $8.3 $25.6 $26.3 
Earned Premiums$8.6 $8.4 $8.4 $8.8 $8.9 $8.9 $9.2 $25.4 $27.0 
Net Investment Income0.8 0.9 0.8 0.5 0.4 0.2 0.3 2.5 0.9 
Change in Value of Alternative Energy Partnership Investments(0.3)(0.1)(0.2)— — — — (0.6)— 
Total Revenues9.1 9.2 9.0 9.3 9.3 9.1 9.5 27.3 27.9 
Incurred Losses and LAE related to:
Current Year:
Non-catastrophe Losses and LAE4.2 4.1 4.2 2.6 2.5 3.3 3.9 12.5 9.7 
Catastrophe Losses and LAE0.3 (0.4)1.4 4.4 1.5 0.4 0.1 1.3 2.0 
Prior Years:
Non-catastrophe Losses and LAE0.1 1.2 1.4 (0.7)(1.6)(0.7)(1.2)2.7 (3.5)
Catastrophe Losses and LAE(0.1)(1.4)(0.3)(0.1)0.1 0.1 (0.3)(1.8)(0.1)
Total Incurred Losses and LAE4.5 3.5 6.7 6.2 2.5 3.1 2.5 14.7 8.1 
Insurance Expenses2.7 2.4 2.5 2.5 2.6 2.9 3.1 7.6 8.6 
Operating Income (Loss)1.9 3.3 (0.2)0.6 4.2 3.1 3.9 5.0 11.2 
Income Tax Benefit (Expense)— (0.6)0.4 (0.1)(0.9)(0.6)(0.8)(0.2)(2.3)
Total Product Line Net Operating Income (Loss)$1.9 $2.7 $0.2 $0.5 $3.3 $2.5 $3.1 $4.8 $8.9 
Ratios Based On Earned Premiums
Current Year Non-catastrophe Losses and LAE Ratio48.8 %48.9 %50.0 %29.6 %28.1 %37.1 %42.4 %49.3 %36.0 %
Current Year Catastrophe Losses and LAE Ratio3.5 (4.8)16.7 50.0 16.9 4.5 1.1 5.1 7.4 
Prior Years Non-catastrophe Losses and LAE Ratio1.2 14.3 16.7 (8.0)(18.0)(7.9)(13.0)10.6 (13.0)
Prior Years Catastrophe Losses and LAE Ratio(1.2)(16.7)(3.6)(1.1)1.1 1.1 (3.3)(7.1)(0.4)
Total Incurred Loss and LAE Ratio52.3 41.7 79.8 70.5 28.1 34.8 27.2 57.9 30.0 
Insurance Expense Ratio31.4 28.6 29.8 28.4 29.2 32.6 33.7 29.9 31.9 
Combined Ratio83.7 %70.3 %109.6 %98.9 %57.3 %67.4 %60.9 %87.8 %61.9 %
Underlying Combined Ratio 1
Current Year Non-catastrophe Losses and LAE Ratio48.8 %48.9 %50.0 %29.6 %28.1 %37.1 %42.4 %49.3 %36.0 %
Insurance Expense Ratio31.4 28.6 29.8 28.4 29.2 32.6 33.7 29.9 31.9 
Underlying Combined Ratio80.2 %77.5 %79.8 %58.0 %57.3 %69.7 %76.1 %79.2 %67.9 %
Non-GAAP Measure Reconciliation
Combined Ratio83.7 %70.3 %109.6 %98.9 %57.3 %67.4 %60.9 %87.8 %61.9 %
Less:
Current Year Catastrophe Losses and LAE Ratio3.5 (4.8)16.7 50.0 16.9 4.5 1.1 5.1 7.4 
Prior Years Non-catastrophe Losses and LAE Ratio1.2 14.3 16.7 (8.0)(18.0)(7.9)(13.0)10.6 (13.0)
Prior Years Catastrophe Losses and LAE Ratio(1.2)(16.7)(3.6)(1.1)1.1 1.1 (3.3)(7.1)(0.4)
Underlying Combined Ratio80.2 %77.5 %79.8 %58.0 %57.3 %69.7 %76.1 %79.2 %67.9 %
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.
23


Kemper Corporation
Life & Health Insurance Segment
Results of Operations and Selected Financial Information
(Dollars in Millions)
(Unaudited)
 Three Months EndedNine Months Ended
 Sep 30, 2021Jun 30, 2021Mar 31, 2021Dec 31, 2020Sep 30, 2020Jun 30, 2020Mar 31, 2020Sep 30, 2021Sep 30, 2020
Results of Operations  
Earned Premiums$164.1 $164.2 $161.0 $162.4 $160.6 $162.7 $163.0 $489.3 $486.3 
Net Investment Income48.4 52.4 51.1 52.8 50.7 44.3 51.0 151.9 146.0 
Change in Value of Alternative Energy Partnership Investments(6.1)(2.0)(4.0)— — — — (12.1)— 
Other Income0.1 0.1 0.1 — — 0.5 0.1 0.3 0.6 
Total Revenues206.5 214.7 208.2 215.2 211.3 207.5 214.1 629.4 632.9 
Policyholders’ Benefits and Incurred Losses and LAE119.5 115.3 118.7 121.8 113.6 105.9 100.7 353.5 320.2 
Insurance Expenses92.9 86.2 90.3 83.8 82.5 81.7 86.9 269.4 251.1 
Operating Income (Loss)(5.9)13.2 (0.8)9.6 15.2 19.9 26.5 6.5 61.6 
Income Tax Benefit (Expense)8.7 (0.2)8.1 (0.2)(3.0)(3.8)(4.2)16.6 (11.0)
Segment Net Operating Income (Loss)$2.8 $13.0 $7.3 $9.4 $12.2 $16.1 $22.3 $23.1 $50.6 
 

Sep 30, 2021Jun 30, 2021Mar 31, 2021Dec 31,
2020		Sep 30, 2020Jun 30, 2020Mar 31, 2020
Insurance Reserves:
Future Policyholder Benefits$3,436.1 $3,466.4 $3,448.0 $3,440.5 $3,426.4 $3,407.0 $3,397.1 
Incurred Losses and LAE Reserves:
Life62.3 58.8 68.1 61.1 59.0 61.6 75.5 
Accident and Health25.7 26.4 25.5 25.9 26.1 29.1 28.2 
Property7.4 4.4 5.4 4.6 5.1 3.8 3.1 
Total Incurred Losses and LAE Reserves95.4 89.6 99.0 91.6 90.2 94.5 106.8 
Insurance Reserves$3,531.5 $3,556.0 $3,547.0 $3,532.1 $3,516.6 $3,501.5 $3,503.9 

 

24


Kemper Corporation
Life & Health Insurance Segment
Life Insurance - Results of Operations and Selected Financial Information
(Dollars in Millions)
(Unaudited)
 Three Months EndedNine Months Ended
 Sep 30, 2021Jun 30, 2021Mar 31, 2021Dec 31, 2020Sep 30, 2020Jun 30, 2020Mar 31, 2020Sep 30, 2021Sep 30, 2020
Results of Operations  
Earned Premiums$101.5 $100.6 $98.1 $96.5 $96.3 $95.7 $97.2 $300.2 $289.2 
Net Investment Income47.0 50.9 49.6 52.3 47.5 44.8 48.7 147.5 141.0 
Change in Value of Alternative Energy Partnership Investments(5.8)(1.9)(3.8)— — — — (11.5)— 
Other Income— — — (0.1)— 0.1 — — 0.1 
Total Revenues142.7 149.6 143.9 148.7 143.8 140.6 145.9 436.2 430.3 
Policyholders’ Benefits and Incurred Losses and LAE87.3 81.9 87.9 $89.4 84.0 76.7 68.1 257.1 228.8 
Insurance Expenses61.5 55.6 58.0 52.9 54.7 50.9 60.3 175.1 165.9 
Operating Income (Loss)(6.1)12.1 (2.0)6.4 5.1 13.0 17.5 4.0 35.6 
Income Tax Benefit (Expense)8.4 (0.1)8.0 0.3 (0.8)(2.4)(2.3)16.3 (5.5)
Total Product Line Operating Income (Loss)$2.3 $12.0 $6.0 $6.7 $4.3 $10.6 $15.2 $20.3 $30.1 


Kemper Corporation
Life & Health Insurance Segment
Accident & Health Insurance - Results of Operations and Selected Financial Information
(Dollars in Millions)
(Unaudited)
 Three Months EndedNine Months Ended
 Sep 30, 2021Jun 30, 2021Mar 31, 2021Dec 31, 2020Sep 30, 2020Jun 30, 2020Mar 31, 2020Sep 30, 2021Sep 30, 2020
Results of Operations  
Earned Premiums$47.0 $47.9 $47.4 $50.2 $48.9 $50.8 $49.4 $142.3 $149.1 
Net Investment Income0.9 0.8 1.0 0.3 3.1 (0.4)2.0 2.7 4.7 
Change in Value of Alternative Energy Partnership Investments(0.1)— (0.1)— — — — (0.2)— 
Other Income0.1 0.1 0.1 0.1 — 0.4 0.1 0.3 0.5 
Total Revenues47.9 48.8 48.4 50.6 52.0 50.8 51.5 145.1 154.3 
Policyholders’ Benefits and Incurred Losses and LAE22.9 26.8 24.5 24.5 20.7 22.0 28.1 74.2 70.8 
Insurance Expenses23.5 22.2 24.4 25.1 22.1 24.6 20.1 70.1 66.8 
Operating Income (Loss)1.5 (0.2)(0.5)1.0 9.2 4.2 3.3 0.8 16.7 
Income Tax Benefit (Expense)(0.2)0.1 0.2 — (2.0)(0.9)(0.7)0.1 (3.6)
Total Product Line Net Operating Income (Loss)$1.3 $(0.1)$(0.3)$1.0 $7.2 $3.3 $2.6 $0.9 $13.1 
25


Kemper Corporation
Life & Health Insurance Segment
Property Insurance - Results of Operations and Selected Financial Information
(Dollars in Millions)
(Unaudited)
 Three Months EndedNine Months Ended
 Sep 30, 2021Jun 30, 2021Mar 31, 2021Dec 31, 2020Sep 30, 2020Jun 30, 2020Mar 31, 2020Sep 30, 2021Sep 30, 2020
Results of Operations   
Earned Premiums$15.6 $15.7 $15.5 $15.7 $15.4 $16.2 $16.4 $46.8 $48.0 
Net Investment Income0.5 0.7 0.5 0.2 0.1 (0.1)0.3 1.7 0.3 
Change in Value of Alternative Energy Partnership Investments(0.2)(0.1)(0.1)— — — — (0.4)— 
Total Revenues15.9 16.3 15.9 15.9 15.5 16.1 16.7 48.1 48.3 
Incurred Losses and LAE related to:
Current Year:
Non-catastrophe Losses and LAE3.6 4.2 3.2 2.5 5.2 3.5 4.0 11.0 12.7 
Catastrophe Losses and LAE5.7 2.5 1.9 5.3 3.1 3.2 0.8 10.1 7.1 
Prior Years:
Non-catastrophe Losses and LAE0.4 0.1 0.7 0.1 0.4 0.3 (0.4)1.2 0.3 
Catastrophe Losses and LAE(0.4)(0.2)0.5 — 0.2 0.2 0.1 (0.1)0.5 
Total Incurred Losses and LAE9.3 6.6 6.3 7.9 8.9 7.2 4.5 22.2 20.6 
Insurance Expenses7.9 8.4 7.9 5.8 5.7 6.2 6.5 24.2 18.4 
Operating Income (Loss)(1.3)1.3 1.7 2.2 0.9 2.7 5.7 1.7 9.3 
Income Tax Benefit (Expense)0.5 (0.2)(0.1)(0.5)(0.2)(0.5)(1.2)0.2 (1.9)
Total Product Line Net Operating Income (Loss)$(0.8)$1.1 $1.6 $1.7 $0.7 $2.2 $4.5 $1.9 $7.4 
Ratios Based On Earned Premiums
Current Year Non-catastrophe Losses and LAE Ratio23.1 %26.8 %20.6 %15.9 %33.8 %21.5 %24.3 %23.4 %26.5 %
Current Year Catastrophe Losses and LAE Ratio36.5 15.9 12.3 33.8 20.1 19.8 4.9 21.6 14.8 
Prior Years Non-catastrophe Losses and LAE Ratio2.6 0.6 4.5 0.6 2.6 1.9 (2.4)2.6 0.6 
Prior Years Catastrophe Losses and LAE Ratio(2.6)(1.3)3.2 — 1.3 1.2 0.6 (0.2)1.0 
Total Incurred Loss and LAE Ratio59.6 42.0 40.6 50.3 57.8 44.4 27.4 47.4 42.9 
Insurance Expense Ratio50.6 53.5 51.0 36.9 37.0 38.3 39.6 51.7 38.3 
Combined Ratio110.2 %95.5 %91.6 %87.2 %94.8 %82.7 %67.0 %99.1 %81.2 %
Underlying Combined Ratio 1
Current Year Non-catastrophe Losses and LAE Ratio23.1 %26.8 %20.6 %15.9 %33.8 %21.5 %24.3 %23.4 %26.5 %
Insurance Expense Ratio50.6 53.5 51.0 36.9 37.0 38.3 39.6 51.7 38.3 
Underlying Combined Ratio73.7 %80.3 %71.6 %52.8 %70.8 %59.8 %63.9 %75.1 %64.8 %
Non-GAAP Measure Reconciliation
Combined Ratio110.2 %95.5 %91.6 %87.2 %94.8 %82.7 %67.0 %99.1 %81.2 %
Less:
Current Year Catastrophe Losses and LAE Ratio36.5 15.9 12.3 33.8 20.1 19.8 4.9 21.6 14.8 
Prior Years Non-catastrophe Losses and LAE Ratio2.6 0.6 4.5 0.6 2.6 1.9 (2.4)2.6 0.6 
Prior Years Catastrophe Losses and LAE Ratio(2.6)(1.3)3.2 — 1.3 1.2 0.6 (0.2)1.0 
Underlying Combined Ratio73.7 %80.3 %71.6 %52.8 %70.8 %59.8 %63.9 %75.1 %64.8 %
1 Underlying Combined Ratio is a non-GAAP measure, which is computed as the difference between three operating ratios: the combined ratio, the effect of catastrophes (excluding development of prior-year catastrophes) on the combined ratio and the effect of prior-year reserve development at the reporting date (including development on prior-year catastrophes) on the combined ratio.
26


Kemper Corporation
Expenses
(Dollars in Millions)
(Unaudited)
 Three Months EndedNine Months Ended
 Sep 30, 2021Jun 30, 2021Mar 31, 2021Dec 31, 2020Sep 30, 2020Jun 30, 2020Mar 31, 2020Sep 30, 2021Sep 30, 2020
Insurance Expenses: 
Commissions$210.0 $220.1 $195.2 $183.3 $195.5 $178.2 $188.8 $625.3 $562.5 
General Expenses85.1 82.3 84.6 83.1 74.6 79.2 70.5 252.0 224.3 
Premium Taxes26.5 27.2 25.4 23.0 23.3 23.1 24.8 79.1 71.2 
Total Costs Incurred321.6 329.6 305.2 289.4 293.4 280.5 284.1 956.4 858.0 
Net Policy Acquisition Costs Deferred(23.8)(41.1)(22.4)(11.1)(17.4)(9.3)(13.8)(87.3)(40.5)
Amortization of Valuation of Business Acquired ("VOBA")13.5 25.5 0.9 1.0 0.9 1.5 1.3 39.9 3.7 
Insurance Expenses311.3 314.0 283.7 279.3 276.9 272.7 271.6 909.0 821.2 
Interest and Other Expenses:
Interest Expense10.7 11.2 11.1 11.3 8.3 8.9 7.5 33.0 24.7 
Other Expenses:
Acquisition Related Transaction, Integration and Other Costs8.0 10.4 16.3 20.0 14.4 17.1 11.8 34.7 43.3 
Pension Settlement Expense— — — 64.1 — — — — — 
Other44.0 37.7 29.8 33.4 24.5 25.0 25.2 111.5 74.7 
Other Expenses52.0 48.1 46.1 117.5 38.9 42.1 37.0 146.2 118.0 
Interest and Other Expenses62.7 59.3 57.2 128.8 47.2 51.0 44.5 179.2 142.7 
Total Expenses$374.0 $373.3 $340.9 $408.1 $324.1 $323.7 $316.1 $1,088.2 $963.9 

27


Kemper Corporation
Details of Investment Performance
(Dollars in Millions)
(Unaudited)
 Three Months EndedNine Months Ended
 Sep 30, 2021Jun 30, 2021Mar 31, 2021Dec 31, 2020Sep 30, 2020Jun 30, 2020Mar 31, 2020Sep 30, 2021Sep 30, 2020
Net Investment Income  
Interest on Fixed Income Securities$68.4 $69.7 $69.0 $71.8 $72.7 $74.3 $71.0 $207.1 $218.0 
Dividends on Equity Securities Excluding Alternative Investments2.9 4.8 2.1 4.7 2.8 3.6 4.3 9.8 10.7 
Alternative Investments:
Equity Method Limited Liability Investments12.0 16.4 22.5 7.6 8.2 (12.7)1.8 50.9 (2.7)
Limited Liability Investments Included in Equity Securities9.5 15.3 4.5 14.8 2.4 1.1 3.8 29.3 7.3 
Total Alternative Investments21.5 31.7 27.0 22.4 10.6 (11.6)5.6 80.2 4.6 
Short-term Investments0.2 (0.8)1.2 1.3 2.3 0.3 1.6 0.6 4.2 
Loans to Policyholders5.4 5.4 5.5 5.5 5.5 5.5 5.6 16.3 16.6 
Real Estate2.3 2.4 2.4 2.5 2.3 2.3 2.5 7.1 7.1 
Other9.1 9.3 4.7 3.9 2.7 2.4 4.2 23.1 9.3 
Total Investment Income109.8 122.5 111.9 112.1 98.9 76.8 94.8 344.2 270.5 
Investment Expenses:
Real Estate2.6 2.1 2.1 2.3 1.2 2.7 2.6 6.8 6.5 
Other Investment Expenses5.3 6.5 6.7 7.1 5.6 6.3 6.6 18.5 18.5 
Total Investment Expenses7.9 8.6 8.8 9.4 6.8 9.0 9.2 25.3 25.0 
Net Investment Income$101.9 $113.9 $103.1 $102.7 $92.1 $67.8 $85.6 $318.9 $245.5 
Net Realized Gains (Losses) on Sales of Investments
Fixed Maturities:
Gains on Sales$10.3 $19.2 $13.2 $1.9 $11.9 $10.9 $15.9 $42.7 $38.7 
Losses on Sales(0.4)(0.2)(1.1)(4.4)(1.9)(0.5)(1.1)(1.7)(3.5)
Equity Securities:
Gains on Sales0.1 — 1.7 4.4 0.1 0.1 1.3 1.8 1.5 
Losses on Sales(0.2)— — (1.7)— — (0.2)(0.2)(0.2)
Equity Method Limited Liability Investments:
Gains on Sales0.4 — — — — — — 0.4 — 
Losses on Sales— — — (0.3)(0.1)— — — (0.1)
Real Estate:
Gains (Losses) on Sales(0.1)0.2 — — — 1.2 0.6 0.1 1.8 
Net Realized Gains (Losses) on Sales of Investments$10.1 $19.2 $13.8 $(0.1)$10.0 $11.7 $16.5 $43.1 $38.2 
Net Impairment Losses Recognized in Earnings
Fixed Maturities$0.5 $(0.6)$(3.2)$1.3 $(1.0)$(7.0)$(10.0)$(3.3)$(18.0)
Equity Securities(0.7)(2.6)(0.8)(0.8)— — (2.0)(4.1)(2.0)
Real Estate(0.4)— — — — — — (0.4)— 
Net Impairment Losses Recognized in Earnings$(0.6)$(3.2)$(4.0)$0.5 $(1.0)$(7.0)$(12.0)$(7.8)$(20.0)
 
28


Kemper Corporation
Details of Invested Assets
(Dollars in Millions)
(Unaudited)
 Sep 30, 2021Dec 31, 2020Dec 31, 2019
 Carrying
Value
Percent
of Total1
Carrying
Value
Percent
of Total1
Carrying
Value
Percent
of Total1
Fixed Maturities Reported at Fair Value:
U.S. Government and Government Agencies and Authorities
$502.6 4.8 %$585.3 5.6 %$815.9 8.8 %
States and Political Subdivisions
1,917.3 18.4 1,589.5 15.2 1,515.8 16.4 
Foreign Governments
5.7 0.1 5.2 — 16.8 0.2 
Corporate Securities:
Bonds and Notes
4,433.3 42.5 4,425.4 42.5 3,859.7 41.7 
Redeemable Preferred Stocks
7.4 0.1 7.5 0.1 6.7 0.1 
Collateralized Loan Obligations735.9 7.1 767.7 7.4 618.2 6.7 
Other Mortgage- and Asset-backed
282.9 2.7 225.3 2.2 89.0 1.0 
Total Fixed Maturities Reported at Fair Value
7,885.1 75.7 7,605.9 73.0 6,922.1 74.7 
Equity Securities Reported at Fair Value:
Preferred Stocks
51.7 0.5 59.1 0.6 59.2 0.6 
Common Stocks
42.1 0.4 10.8 0.1 13.2 0.1 
Other Equity Interests:
Exchange Traded Funds
546.9 5.2 496.6 4.8 586.8 6.3 
Limited Liability Companies and Limited Partnerships
328.9 3.2 292.0 2.8 248.1 2.7 
Total Equity Securities Reported at Fair Value
969.6 9.3 858.5 8.2 907.3 9.8 
Equity Securities Reported at Modified Cost:
Preferred Stocks
7.2 0.1 8.1 0.1 9.1 0.1 
Common Stocks
17.5 0.2 16.3 0.2 12.3 0.1 
Limited Liability Companies and Limited Partnerships
8.3 0.1 15.7 0.2 20.5 0.2 
Total Equity Securities Reported at Modified Cost
33.0 0.4 40.1 0.5 41.9 0.4 
Convertible Securities at Fair Value
44.1 0.4 39.9 0.4 37.3 0.4 
Equity Method Limited Liability Investments
255.1 2.4 204.0 2.0 220.4 2.4 
Alternative Energy Partnership Investments54.2 0.5 21.3 0.2 — — 
Short-term Investments at Cost which Approximates Fair Value
259.7 2.5 875.4 8.4 470.9 5.1 
Other Investments:
Company Owned Life Insurance
440.7 4.2 327.4 3.1 217.0 2.3 
Loans to Policyholders at Unpaid Principal 289.6 2.8 297.9 2.9 305.6 3.3 
Real Estate at Depreciated Cost
95.8 0.9 98.7 0.9 111.4 1.2 
Mortgage Loans
94.0 0.9 54.6 0.5 27.5 0.3 
Other
1.4 — 0.4 — — — 
Total Other Investments
921.5 8.8 779.0 7.4 661.5 7.1 
Total Investments
$10,422.3 100.0 %$10,424.1 100.0 %$9,261.4 100.0 %
1 Sum of percentages for individual lines may not equal subtotals and grand total due to rounding.
29

Kemper Corporation
Details of Invested Assets (continued)
(Dollars in Millions)
(Unaudited)
 Sep 30, 2021Dec 31, 2020Dec 31, 2019
 Carrying
Value
Percent
of Total1
Carrying
Value
Percent
of Total1
Carrying
Value
Percent
of Total1
S&P Equivalent Rating for Fixed Maturities
      
AAA, AA, A
$5,181.5 65.8 %$4,759.9 62.6 %$4,387.1 63.4 %
BBB
2,294.9 29.1 2,355.6 31.0 2,044.1 29.5 
BB, B
295.0 3.7 353.1 4.6 319.2 4.6 
CCC or Lower
113.7 1.4 137.3 1.8 171.7 2.5 
Total Investments in Fixed Maturities
$7,885.1 100.0 %$7,605.9 100.0 %$6,922.1 100.0 %
Duration (in Years)
Total Investments in Fixed Maturities
8.5 7.8 7.1 
1 Sum of percentages for individual lines may not equal subtotals and grand total due to rounding.

30


Kemper Corporation
Investment Concentration
(Dollars in Millions)
(Unaudited)
 Sep 30, 2021Dec 31, 2020Dec 31, 2019
Fair Value of Non-governmental Fixed Maturities by Industry
AmountPercent
of Total
Investments		AmountPercent
of Total
Investments		AmountPercent
of Total
Investments
Finance, Insurance and Real Estate
$1,955.8 18.8 %$1,916.3 18.4 %$1,522.8 16.4 %
Manufacturing
1,613.8 15.5 1,633.5 15.7 1,356.4 14.6 
Transportation, Communication and Utilities
827.8 7.9 825.5 7.9 650.2 7.0 
Services
622.1 6.0 581.3 5.6 604.4 6.5 
Mining
269.8 2.6 285.7 2.7 154.5 1.7 
Retail Trade
157.4 1.5 172.6 1.7 183.3 2.0 
Construction10.4 0.1 — — — — 
Wholesale Trade
— — 0.5 — 72.9 0.8 
Agriculture, Forestry and Fishing
— — — — 12.4 0.1 
Other
2.4 — 10.5 0.1 16.6 0.2 
Total Fair Value of Non-governmental Fixed Maturities
$5,459.5 52.4 %$5,425.9 52.1 %$4,573.5 49.3 %
 
Sep 30, 2021
Ten Largest Investment Exposures 1
Fair
Value		Percent
of Total
Investments
Fixed Maturities:
States including their Political Subdivisions:
Texas$149.7 1.4 %
California106.7 1.0 
New York95.2 0.9 
Georgia92.4 0.9 
Colorado81.9 0.8 
Louisiana75.5 0.7 
Florida72.4 0.7 
Pennsylvania71.1 0.7 
Equity Securities at Fair Value—Other Equity Interests:
Vanguard Total World Stock ETF215.0 2.1 
iShares® Core MSCI Total International Stock ETF86.1 0.8 
Total$1,046.0 10.0 %
1Excluding Investments in U.S. Government and Government Agencies and Authorities at September 30, 2021.

 

31


Kemper Corporation
Municipal Bond Securities
(Dollars in Millions)
(Unaudited)
 Sep 30, 2021
State
General
Obligation		Political
Subdivision
General
Obligation		RevenueTotal Fair
Value
Percent
of Total
Muni Bond1
Percent
of Total
Investments1
 Texas $9.0 $23.6 $117.0 $149.6 7.8 %1.4 %
 California 7.2 12.6 86.9 106.7 5.6 1.0 
 New York 6.4 9.0 79.8 95.2 5.0 0.9 
 Georgia 6.5 7.5 78.4 92.4 4.8 0.9 
 Colorado — — 81.9 81.9 4.3 0.8 
 Louisiana 37.6 5.8 32.1 75.5 3.9 0.7 
 Florida — — 72.4 72.4 3.8 0.7 
Pennsylvania6.1 6.4 58.6 71.1 3.7 0.7 
Michigan25.5 — 40.8 66.3 3.5 0.6 
Virginia6.9 17.0 38.9 62.8 3.3 0.6 
Washington18.4 1.8 40.8 61.0 3.2 0.6 
Massachusetts6.4 1.4 52.2 60.0 3.1 0.6 
Oregon32.3 2.9 24.9 60.1 3.1 0.6 
Maryland2.1 8.3 44.1 54.5 2.8 0.5 
Illinois— 0.7 47.3 48.0 2.5 0.5 
Ohio6.4 — 41.1 47.5 2.5 0.5 
Minnesota— 2.3 44.7 47.0 2.5 0.5 
Tennessee3.5 11.8 27.1 42.4 2.2 0.4 
Missouri— 1.3 37.1 38.4 2.0 0.4 
District Of Columbia7.0 — 30.2 37.2 1.9 0.4 
Utah— — 37.1 37.1 1.9 0.4 
New Mexico— — 35.7 35.7 1.9 0.3 
Indiana— — 31.6 31.6 1.6 0.3 
Hawaii22.3 4.5 3.9 30.7 1.6 0.3 
Rhode Island1.8 — 27.6 29.4 1.5 0.3 
Connecticut16.2 — 11.7 27.9 1.5 0.3 
Arizona— 0.8 24.5 25.3 1.3 0.2 
Mississippi14.3 — 10.5 24.8 1.3 0.2 
New Hampshire4.3 0.5 19.3 24.1 1.3 0.2 
South Carolina— 1.7 19.8 21.5 1.1 0.2 
Nebraska— 8.4 12.6 21.0 1.1 0.2 
North Carolina— 2.0 17.4 19.4 1.0 0.2 
Arkansas18.7 — — 18.7 1.0 0.2 
Kentucky— — 18.4 18.4 1.0 0.2 
Alaska— — 17.0 17.0 0.9 0.2 
Oklahoma— — 16.3 16.3 0.9 0.2 
Iowa— — 16.3 16.3 0.9 0.2 
North Dakota— — 14.6 14.6 0.8 0.1 
 Wisconsin 1.0 3.1 9.6 13.7 0.7 0.1 
All Other States2.0 10.6 91.2 103.8 5.4 1.0 
Total$261.9 $144.0 $1,511.4 $1,917.3 100.0 %18.4 %
1 Sum of percentages for individual lines may not equal total due to rounding.
32


Kemper Corporation
Investments in Limited Liability
Companies and Limited Partnerships
(Dollars in Millions)
(Unaudited)
 Unfunded
Commitment		Reported Value
Asset ClassSep 30, 2021Sep 30, 2020Dec 31, 2020
Reported as Equity Method Limited Liability Investments:
Mezzanine Debt$48.3 $111.3 $102.5 
Senior Debt26.8 28.5 28.6 
Distressed Debt— 22.3 14.5 
Secondary Transactions8.5 14.0 11.2 
Leveraged Buyout0.1 7.9 3.5 
Growth Equity— 0.7 0.7 
Real Estate— 30.0 29.9 
Hedge Funds— 25.6 — 
Other— 14.8 13.1 
Total Equity Method Limited Liability Investments83.7 255.1 204.0 
Alternative Energy Partnership Investments— 54.2 21.3 
Reported as Other Equity Interests at Fair Value:
Mezzanine Debt58.3 133.2 118.3 
Senior Debt18.5 29.2 33.9 
Distressed Debt19.9 42.2 31.8 
Secondary Transactions6.8 4.0 4.2 
Hedge Funds— 82.1 71.6 
Leveraged Buyout6.8 35.6 30.7 
Other0.7 2.6 1.5 
Total Reported as Other Equity Interests at Fair Value111.0 328.9 292.0 
Reported as Other Equity Interests at Modified Cost:
Other0.2 8.3 15.7 
Total Reported as Other Equity Interests at Modified Cost0.2 8.3 15.7 
Total Investments in Limited Liability Companies and Limited Partnerships$194.9 $646.5 $533.0 

33

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:

(i) Income (Loss) from Change in Fair Value of Equity and Convertible Securities;
(ii) Net Realized Gains or Losses on Sales of Investments;
(iii) Impairment Losses;
(iv) Acquisition Related Transaction, Integration and Other Costs;
(v) Debt Extinguishment, Pension and Other Charges; and
(vi) Significant non-recurring or infrequent items that may not be indicative of ongoing operations

Significant non-recurring items are excluded when (a) the nature of the charge or gain is such that it is reasonably unlikely to recur within two years, and (b) there has been no similar charge or gain within the prior two years. The most directly comparable GAAP financial measure is Net Income (Loss). There were no applicable significant non-recurring items that the Company excluded from the calculation of Adjusted Consolidated Net Operating Income for the nine and three months ended September 30, 2021 or 2020.

The Company believes that Adjusted Consolidated Net Operating Income provides investors with a valuable measure of its ongoing performance because it reveals underlying operational performance trends that otherwise might be less apparent if the items were not excluded. Income (Loss) from Change in Fair Value of Equity and Convertible Securities, Net Realized Gains or Losses on Sales of Investments and Impairment Losses related to investments included in the Company’s results may vary significantly between periods and are generally driven by business decisions and external economic developments such as capital market conditions that impact the values of the Company’s investments, the timing of which is unrelated to the insurance underwriting process. Acquisition Related Transaction and Integration Costs may vary significantly between periods and are generally driven by the timing of acquisitions and business decisions which are unrelated to the insurance underwriting process. Debt Extinguishment, Pension and Other Charges relate to (i) loss from early extinguishment of debt, which is driven by the Company’s financing and refinancing decisions and capital needs, as well as external economic developments such as debt market conditions, the timing of which is unrelated to the insurance underwriting process; (ii) settlement of pension plan obligations which are business decisions made by the Company, the timing of which is unrelated to the underwriting process; and (iii) other charges that are non-standard, not part of the ordinary course of business, and unrelated to the insurance underwriting process. Significant non-recurring items are excluded because, by their nature, they are not indicative of the Company’s business or economic trends. The preceding non-GAAP financial measures should not be considered a substitute for the comparable GAAP financial measures, as they do not fully recognize the overall profitability of the Company’s businesses.
34

Kemper Corporation
Definitions of Non-GAAP Financial Measures (continued)
A reconciliation of Net Income (Loss) to Adjusted Consolidated Net Operating Income is presented below:
 Three Months EndedNine Months Ended
Dollars in Millions (Unaudited)Sep 30, 2021Jun 30, 2021Mar 31, 2021Dec 31, 2020Sep 30, 2020Jun 30, 2020Mar 31, 2020Sep 30, 2021Sep 30, 2020
Net Income (Loss)$(75.3)$(62.6)$123.2 $97.5 $122.3 $126.1 $64.0 $(14.7)$312.4 
Less Net Income (Loss) From:
Income (Loss) from Change in Fair Value of Equity and Convertible Securities(0.5)32.3 41.2 57.8 35.7 56.6 (93.1)73.0 (0.8)
Net Realized Gains (Losses) on Sales of Investments7.9 15.2 10.9 (0.1)7.9 9.3 13.0 34.0 30.2 
Impairment Losses(0.5)(2.5)(3.2)0.4 (0.8)(5.5)(9.5)(6.2)(15.8)
Acquisition Related Transaction, Integration and Other Costs(6.4)(8.2)(12.9)(15.8)(11.4)(13.5)(9.3)(27.5)(34.2)
Debt Extinguishment, Pension and Other Charges— — — (50.6)— — — — — 
Adjusted Consolidated Net Operating Income (Loss)$(75.8)$(99.4)$87.2 $105.8 $90.9 $79.2 $162.9 $(88.0)$333.0 
Adjusted Consolidated Net Operating Income Per Unrestricted Share is a non-GAAP financial measure. It is computed by dividing Adjusted Consolidated Net Operating Income by the weighted average unrestricted shares outstanding. The most directly comparable GAAP financial measure is Net Income (Loss) Per Unrestricted Share ‐ basic. A reconciliation of Net Income (Loss) Per Unrestricted Share-basic to Adjusted Consolidated Net Operating Income (Loss) Per Unrestricted Share-basic is presented below:
 Three Months EndedNine Months Ended
(Unaudited)Sep 30, 2021Jun 30, 2021Mar 31, 2021Dec 31, 2020Sep 30, 2020Jun 30, 2020Mar 31, 2020Sep 30, 2021Sep 30, 2020
Net Income (Loss) Per Unrestricted Share$(1.18)$(0.97)$1.88 $1.49 $1.87 $1.93 $0.96 $(0.23)$4.75 
Less Net Income (Loss) Per Unrestricted Share From:
Income (Loss) from Change in Fair Value of Equity and Convertible Securities(0.01)0.50 0.63 0.87 0.54 0.87 (1.40)1.13 (0.01)
Net Realized Gains (Losses) on Sales of Investments0.13 0.24 0.17 — 0.12 0.14 0.19 0.53 0.46 
Impairment Losses(0.01)(0.04)(0.05)0.01 (0.01)(0.08)(0.14)(0.10)(0.24)
Acquisition Related Transaction and Integration Costs(0.10)(0.13)(0.20)(0.24)(0.17)(0.21)(0.14)(0.43)(0.52)
Debt Extinguishment, Pension and Other Charges— — — (0.77)— — — — — 
Adjusted Consolidated Net Operating Income (Loss) Per Unrestricted Share$(1.19)$(1.54)$1.33 $1.62 $1.39 $1.21 $2.45 $(1.36)$5.06 

Underlying Combined Ratio is a non-GAAP financial measure. It is computed by adding the Current Year Non-catastrophe Losses and LAE Ratio with the Insurance Expense Ratio. The most directly comparable GAAP financial measure is the Combined Ratio, which is computed by adding Total Incurred Losses and LAE Ratio, including the impact of catastrophe losses and loss and LAE reserve development from prior years, with the Insurance Expense Ratio.

The Company believes Underlying Losses and LAE and the Underlying Combined Ratio are useful to investors and uses these financial measures to reveal the trends in the Company’s Property & Casualty Insurance segment that may be obscured by catastrophe losses and prior-year reserve development. These catastrophe losses may cause the Company’s loss trends to vary significantly between periods as a result of their incidence of occurrence and magnitude and can have a significant impact on incurred losses and LAE and the Combined Ratio. Prior-year reserve developments are caused by unexpected loss development on historical reserves. Because reserve development relates to the re-estimation of losses from earlier periods, it has no bearing on the performance of the Company’s insurance products in the current period. The Company believes it is useful for investors to evaluate these components separately and in the aggregate when reviewing the Company’s underwriting performance.
35

Kemper Corporation
As Adjusted for Acquisitions Non-GAAP Financial Measure

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

36

Kemper Corporation
As Adjusted for Acquisitions - Consolidated Financial Highlights
(Dollars in Millions)
(Unaudited)
 Three Months EndedNine Months Ended
 Sep 30, 2021Jun 30, 2021Mar 31, 2021Dec 31, 2020Sep 30, 2020Jun 30, 2020Mar 31, 2020Sep 30, 2021Sep 30, 2020
Earned Premiums
Kemper - GAAP As Reported
$1,356.1 $1,337.7 $1,200.8 $1,214.0 $1,206.5 $1,085.3 $1,166.4 $3,894.6 $3,458.2 
AAC - Prior to Acquisition— — 87.9 91.2 92.6 92.0 90.3 87.9 274.9 
As Adjusted for Acquisitions1
$1,356.1 $1,337.7 $1,288.7 $1,305.2 $1,299.1 $1,177.3 $1,256.7 $3,982.5 $3,733.1 
Adjusted Consolidated Net Operating Income (Loss)
Kemper
$(75.8)$(99.4)$87.2 $105.8 $90.9 $79.2 $162.9 $(88.0)$333.0 
AAC - Prior to Acquisition— — 12.3 9.5 12.4 13.3 10.9 12.3 36.6 
Less: Impact of Purchase Accounting
(6.7)(10.1)(1.8)(3.2)(3.2)(4.4)(4.4)(18.6)(12.0)
As Adjusted for Acquisitions1
$(69.1)$(89.3)$101.3 $118.5 $106.5 $96.9 $178.2 $(57.1)$381.6 
1 As Adjusted for Acquisitions is a non-GAAP financial measure, which is computed by excluding the impact of purchase accounting. See page 36.

37

Kemper Corporation
Selected Financial Information
As Adjusted for Acquisitions - Specialty Property & Casualty Insurance Segment
(Dollars in Millions)
(Unaudited)
 Three Months EndedNine Months Ended
Sep 30, 2021Jun 30, 2021Mar 31, 2021Dec 31, 2020Sep 30, 2020Jun 30, 2020Mar 31, 2020Sep 30, 2021Sep 30, 2020
Earned Premiums
Kemper Specialty P&C - GAAP As Reported$1,028.3 $1,010.3 $877.6 $882.4 $871.4 $759.0 $822.5 $2,916.2 $2,452.9 
AAC - Prior to Acquisition— — 87.9 91.2 92.6 92.0 90.3 87.9 274.9 
As Adjusted for Acquisitions1
$1,028.3 $1,010.3 $965.5 $973.6 $964.0 $851.0 $912.8 $3,004.1 $2,727.8 
Current Year Non-CAT Losses and LAE
Kemper Specialty P&C - GAAP As Reported$924.4 $877.4 $650.0 $626.2 $589.0 $515.8 $619.8 $2,451.8 $1,724.6 
AAC - Prior to Acquisition— — 62.0 62.4 62.6 62.2 62.6 62.0 187.4 
Less: Impact of Purchase Accounting
Amortization of Fair Value Adjustment to Unpaid Loss and LAE0.3 0.3 0.4 0.4 0.3 0.8 0.7 1.0 1.8 
As Adjusted for Acquisitions1
$924.1 $877.1 $711.6 $688.2 $651.3 $577.2 $681.7 $2,512.8 $1,910.2 
Insurance Expenses
Kemper Specialty P&C - GAAP As Reported$194.2 $205.6 $170.3 $179.1 $159.5 $161.2 $152.1 $570.1 $472.8 
AAC - Prior to Acquisition— — 13.1 17.2 18.3 19.7 15.4 13.1 53.4 
Less: Impact of Purchase Accounting
Amortization of VOBA12.8 24.8 0.3 0.3 0.3 0.6 0.6 37.9 1.5 
Amortization of Estimated Legacy AAC Deferred Policy Acquisition Costs ("DPAC")(8.4)(16.0)— — — — — (24.4)— 
Amortization of VOBA, Net of Legacy DPAC4.4 8.8 0.3 0.3 0.3 0.6 0.6 13.5 1.5 
Amortization of Finite Life Intangible Assets Acquired3.1 3.0 0.9 0.9 0.9 0.9 1.2 7.0 3.0 
Other1.1 1.1 1.1 2.9 3.0 3.0 3.4 3.3 9.4 
Total Purchase Accounting Adjustments8.6 12.9 2.3 4.1 4.2 4.5 5.2 23.8 13.9 
As Adjusted for Acquisitions1
$185.6 $192.7 $181.1 $192.2 $173.6 $176.4 $162.3 $559.4 $512.3 
Underlying Combined Ratio1
Kemper Specialty P&C Segment - GAAP As Reported108.9 %107.3 %93.5 %91.3 %85.9 %89.1 %93.9 %103.5 %89.6 %
As Adjusted for Acquisitions1
107.9 %105.9 %92.5 %90.4 %85.6 %88.6 %92.5 %102.3 %88.8 %
1 As Adjusted for Acquisitions is a non-GAAP financial measure, which is computed by excluding the impact of purchase accounting. See page 36.

38

Kemper Corporation
Selected Financial Information
As Adjusted for Acquisitions - Specialty Personal Automobile Insurance
(Dollars in Millions)
(Unaudited)
 Three Months EndedNine Months Ended
Sep 30, 2021Jun 30, 2021Mar 31, 2021Dec 31, 2020Sep 30, 2020Jun 30, 2020Mar 31, 2020Sep 30, 2021Sep 30, 2020
Earned Premiums
Kemper Specialty Personal Automobile Insurance - GAAP As Reported$920.6 $909.6 $785.4 $796.1 $792.2 $689.8 $753.2 $2,615.6 $2,235.2 
AAC - Prior to Acquisition— — 87.9 91.2 92.6 92.0 90.3 87.9 274.9 
As Adjusted for Acquisitions1
$920.6 $909.6 $873.3 $887.3 $884.8 $781.8 $843.5 $2,703.5 $2,510.1 
Current Year Non-CAT Losses and LAE
Kemper Specialty Personal Automobile Insurance - GAAP As Reported$843.9 $805.1 $586.4 $569.1 $543.4 $472.4 $576.0 $2,235.4 $1,591.8 
AAC - Prior to Acquisition— — 62.0 62.4 62.6 62.2 62.6 62.0 187.4 
Less: Impact of Purchase Accounting
Amortization of Fair Value Adjustment to Unpaid Loss and LAE0.3 0.2 0.3 0.3 0.2 0.6 0.6 0.8 1.4 
As Adjusted for Acquisitions1
$843.6 $804.9 $648.1 $631.2 $605.8 $534.0 $638.0 $2,296.6 $1,777.8 
Insurance Expenses
Kemper Specialty Personal Automobile Insurance - GAAP As Reported$176.0 $187.7 $155.3 $162.8 $145.6 $146.7 $139.2 $519.0 $431.5 
AAC - Prior to Acquisition— — 13.1 17.2 18.3 19.7 15.4 13.1 53.4 
Less: Impact of Purchase Accounting
Amortization of VOBA12.8 24.7 0.2 0.2 0.1 0.4 0.4 37.7 0.9 
Amortization of Estimated Legacy AAC Deferred Policy Acquisition Costs ("DPAC")(8.4)(16.0)— — — — — (24.4)— 
Amortization of VOBA, Net of Legacy DPAC4.4 8.7 0.2 0.2 0.1 0.4 0.4 13.3 0.9 
Amortization of Finite Life Intangible Assets Acquired2.9 2.8 0.7 0.7 0.7 0.7 1.1 6.4 2.5 
Other0.8 0.9 0.9 2.4 2.4 2.4 3.0 2.6 7.8 
Total Purchase Accounting Adjustments8.1 12.4 1.8 3.3 3.2 3.5 4.5 22.3 11.2 
As Adjusted for Acquisitions1
$167.9 $175.3 $166.6 $176.7 $160.7 $162.9 $150.1 $509.8 $473.7 
Underlying Combined Ratio1
Kemper Specialty Personal Automobile Insurance - GAAP As Reported110.8 %109.1 %94.5 %91.8 %86.9 %89.8 %95.0 %105.2 %90.5 %
As Adjusted for Acquisitions1
109.9 %107.8 %93.3 %91.1 %86.6 %89.1 %93.4 %103.8 %89.7 %
1 As Adjusted for Acquisitions is a non-GAAP financial measure, which is computed by excluding the impact of purchase accounting. See page 36.

39
Earnings Call Presentation – 3Q 2021 Third Quarter 2021 Earnings October 28, 2021

 
Earnings Call Presentation – 3Q 2021 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. Preliminary Matters 2

 
Earnings Call Presentation – 3Q 2021 Deliver low double-digit ROE2 over time Create Long-Term Shareholder Value Leverage competitive advantages to grow returns and BVPS1 over time ¹ Book value per share 2 Return on equity Sustainable competitive advantages and build core capabilities Growing returns and book value per share over time Diversified sources of earnings; Strong capital/liquidity positions; Disciplined approach to capital management Consumer-related businesses with opportunities that: • Target specialty markets • Have limited, weak or unfocused competition • Require unique expertise (underwriting, claim, distribution, analytics and other) Strategic focus: 3

 
Earnings Call Presentation – 3Q 2021 Third Quarter 2021 Highlights Pandemic re-opening and Delta variant create margin headwinds Taking measures to adapt to current environment and return to target profitability • Earned premium increased 12%, as reported, and 4%, as adjusted • Auto frequency and severity up 18%-20% and 8%-10%, respectively; proactively seeking rate • Historically high Life persistency; COVID-related mortality re-emerged with Delta variant 3rd Quarter Overview Environmental pressures challenged 3Q21 financial results • Net loss of $75 million ($1.18 per share), as reported, or $69 million ($1.08 per share), as adjusted • Adjusted consolidated net operating loss1 of $76 million ($1.19 per share), as reported, or $69 million ($1.08 per share), as adjusted • 2% ROAE2, 3% ROAE2 excluding net unrealized gains on fixed maturities and goodwill1 • Generated $504 million of operating cash flow over the trailing 12 months Shareholder Value Creation ¹ Non-GAAP financial measure; please see reconciliation in appendix on pages 20-29; 2 Return on average shareholders’ equity (5-point average); 3 As adjusted for acquisition; see reconciliation on Pages 20-29; 4 Normalized for premium credits; 5 Personal Injury Protection Strong capital and liquidity enables us to navigate environmental challenges • Holding company remains a source of strength for subsidiaries, with more than $1 billion of liquidity • Debt-to-capital ratio of 21.3% is within target range of 17-22% Capital Management and Financial Strength 4

 
Earnings Call Presentation – 3Q 2021 Focus is on restoring profitability and positioning businesses for growth in 2023 Third Quarter Financial Highlights Environmental headwinds impacting profitability and TBVPS growth As Reported As Adjusted1 Quarter Ended Quarter Ended (Dollars in millions, except per share amounts) Sept 30, 2021 Sept 30, 2020 Sept 30, 2021 Sept 30, 2020 Net Income (Loss) $(75) $122 $(69) $140 Net Income (Loss) – Per Diluted Share $(1.18) $1.83 $(1.08) $2.10 Adjusted Consolidated Net Operating Income (Loss)1 $(76) $91 $(69) $107 Adj. Consolidated Net Op. Income (Loss) – Per Diluted Share1 $(1.19) $1.36 $(1.08) $1.60 Catastrophe Losses $33 $67 AAC goodwill diluted TBVPS by $3.11 Tangible Book Value Per Common Share excluding unrealized gains1 $36.33 $39.60 Return on Avg. Tangible Common Equity1 3.2% 17.9% Dividend Paid to Shareholders Per Share $0.31 $0.30 Specialty PIF growth (ex. Classic Car) 17.8% 7.6% 4.3% 6.5% 5 ¹ Non-GAAP financial measure; please see reconciliation in appendix on pages 20-29

 
Earnings Call Presentation – 3Q 2021 Restoration activities expected to persist through 2022 Review of Net Operating Income ¹ Non-GAAP financial measure; see reconciliation in appendix pages 20-29 3Q21 financial results pressured by environmental challenges 6 Notable 3Q21 items: • Auto frequency and severity up 18% - 20% and 8% - 10%, respectively • Atypical second surge in Florida litigation following recent PIP-related court decision: $25 million • Excess Life benefit costs: Excess deaths $7 - $8 million, greater persistency $3 - $4 million Three Months Ended, As Reported Sep. 30, Jun. 30, Mar. 31, Dec. 31, Sep. 30, Variance Dollars per Unrestricted Share - Diluted 2021 2021 2021 2020 2020 QoQ Net Income (Loss) (1.18)$ (0.97)$ 1.85$ 1.46$ 1.83$ (3.01) (Income) Loss from Change in FV of Equity & Convertible Securities 0.01 (0.50) (0.62) (0.86) (0.53) 0.54 Investment Related (Gains)/Losses (0.13) (0.24) (0.16) - (0.12) (0.01) Net Impairment Losses 0.01 0.04 0.05 (0.01) 0.01 - Acquisition Related Transaction, Integration & Other Costs 0.10 0.13 0.19 0.24 0.17 (0.07) Debt Extinguishment, Pension and Other Charges - - - 0.76 - - Adj. Consolidated Net Operating Income (Loss)1 (1.19) (1.54) 1.31 1.59 1.36 (2.55) Sources of Volatility: Income (Loss) After-Tax From: Catastrophes (0.40) (0.43) (0.33) (0.07) (0.80) 0.40 Solar Investment 0.11 0.01 0.20 0.05 - 0.11 Prior-year Reserve Development (0.31) (1.01) - (0.10) (0.10) (0.21) Alternative Investment Income 0.27 0.38 0.32 0.27 0.12 0.15 Impact of Purchase Accounting (0.10) (0.15) (0.03) (0.05) (0.05) (0.05) Total from Sources of Volatility (0.43)$ (1.20)$ 0.16$ 0.10$ (0.83)$ 0.40$

 
Earnings Call Presentation – 3Q 2021 Environmental Factors Pressuring Capital Generation & Returns Total Adjusted Return of BVPS Ex. Unrealized Gains on Fixed Maturities and Goodwill Return on Shareholders’ Equity 2016 2017 2018 2019 2020 1Q21 2Q21 3Q21 Book Value Per Share ex. Goodwill and Unrealized¹ Cumulative Dividends Per Share Paid $31.21 $31.10$29.66 $40.27 $42.37 $46.76 $48.29 $43.50 1.1% 8.0% 11.4% 24.7% 16.3% 18.1% 10.8% 3.2% 0.9% 6.6% 8.3% 16.3% 11.3% 12.6% 7.5% 2.2% 2016 2017 2018 2019 2020 1Q21 2Q21 3Q21 ROATCE ROE ex. Unrealized Gains on Fixed Maturities Growth 43% • AAC goodwill diluted TBVPS by $3.11 • Infinity transaction diluted TBVPS by $3.84 • ROATCE measure captures investors compensation on tangible equity ¹ Non-GAAP financial measure; please see reconciliation in appendix on pages 20-29 2 Return on average tangible common equity (rolling 5 point avg.); please see reconciliation in appendix on pages 20-29 3 Return on average shareholder’s equity excluding unrealized gains on fixed maturities (rolling 5 point avg.); please see reconciliation in appendix on pages 20-29 2 3 7 Infinity Acq Closed 7/18 AAC Acq Closed 4/21

 
Earnings Call Presentation – 3Q 2021 27.6% 21.9% 23.0% 16.4% 20.4% 21.3% 2016 2017 2018 2019 2020 3Q21 Debt-to-Capital <30% Strong Balance Sheet with Well-Funded Insurance Entities Significant capital and liquidity positions Debt Cash Flow from Operating Activities $2.7B $4.8B$4.0B$2.7B Total Capitalization Parent Company Liquidity Risk-Based Capital Ratios $299 $197 $101 $207 $733 $331 $385 $385 $540 $660 $700 $704 2016 2017 2018 2019 2020 3Q21 Borrowings Available Under Credit Agreement & from Subs HoldCo Cash & Investments (M M ) 415 430 410 355 340 315335 290 285 365 330 240 2016 2017 2018 2019 2020 3Q21 Life & Health P&C (ex. AU & AACC) (% ) $684 $867 $641$582 (M M ) $241 $241 $539 $534 $448 $504 2016 2017 2018 2019 2020 3Q21 TTM $1,433 $5.7B Capital and liquidity positions enable us to navigate environment and position business for success $5.3B 8 $1,035

 
Earnings Call Presentation – 3Q 2021 4.2% 4.5% 4.5% 5.0% 4.4% 3Q20 4Q20 1Q21 2Q21 3Q21 52% 18% 5% 7% 6% 3% 9% Other States/ Munis 66% 29% 4% 1% Diversified & Highly-Rated Portfolio Fixed Maturity Ratings $7.9 Billion A or Higher ≤ CCC B / BB BBB Diversified Portfolio with Consistent Returns Note: Charts may not balance due to rounding ¹ Equity securities excludes $337 million of Other Equity Interests of LP/LLC’s that have been reclassified into Alternative Investments • Portfolio continues to provide stable net investment income - 4.4% PTE annualized book yield • Investment portfolio is designed for growth of both income and total return • Stable investment income supports long- term business objectives $81 $81 $76 $82 $80 $11 $22 $27 $32 $22 3Q20 4Q20 1Q21 2Q21 3Q21 Core Portfolio Alternative Inv. Portfolio Net Investment Income¹ (M M ) $92 $102$114$103$103 Overview Corporates Short-term Alternatives¹ Equity¹ U.S. Gov’t Portfolio Composition Pre-Tax Equiv. Annualized Book Yield $10.4 Billion 9

 
Earnings Call Presentation – 3Q 2021 Environmental Challenges Impacting P&C Segments Re-opening and other factors are continuing to drive up frequency and severity 10 Impacts on Current Accident Year • Frequency up 18% - 20% vs 3Q’20 (low due to Pandemic shut-downs) - QTD August’21 miles driven up 10%1 vs QTD August‘20 - Driving patterns shifted from pre-Pandemic norms (time of day, duration and distance of trips) • Severity up 8% - 10% vs 3Q’20 - Supply chain issues (i.e., parts, supplies and rental cars) - Labor shortages (i.e., understaffed auto body shops increasing repair time and wages) - Social inflation expanding into lower limit policies during Pandemic reduced frequency Specialty Auto Prior Year Reserve Development Details • Florida Personal Injury Protection (~$25 million) - Driven by recent Florida court decisions (5-year statute of limitations impacts multiple policy years) - Significant Florida PIP-related court decisions typically result in a single surge of litigation activity; atypical second surge emerged in this instance 3Q21 earnings adversely impacted by continued environmental factors; proactive corrective actions remain in place ¹ US DOT Federal Highway Administration

 
Earnings Call Presentation – 3Q 2021 (10.0)% (8.0)% (6.0)% (4.0)% (2.0)% 0.0 % 2.0 % 4.0 % 6.0 % 8.0 % 10.0 % Significant, rapid drop in loss trend Implementing Pricing and Underwriting Actions to Combat Trend Actions take time to earn into financials | illustrative earned rate vs. trend comparison 11 Time (Not to Scale) Ea rn e d R at e a n d L o ss T re n d ( N o t to S ca le ) Target margins return when combination of earned rate and other underwriting actions exceed loss trend Δ Earned Rate Loss Trend (frequency & severity) Pre-Pandemic Lockdowns Re-Opening / Future Rate filed Rate to zero Predictable loss trend offset by rate Significant, rapid rise in loss trend Prior to 2020 2Q 2020 – 1Q 2021 Current+ Rate earning-in ILLUSTRATIVE LOSS TREND vs. RATE CYCLE Rate meeting / exceeding loss trend

 
Earnings Call Presentation – 3Q 2021 85.6 90.4 92.5 105.9 107.9 88.8 89.2 92.5 99.3 102.3 3Q20 4Q20 1Q21 2Q21 3Q21 Underlying Combined Ratio2 QTD YTD Specialty Property & Casualty Segment1 Environmental challenges pressuring profitability ¹ As adjusted for acquisition; see reconciliation on Pages 20-29; 2 Non-GAAP financial measure; see reconciliation in appendix on pages 20-29; excludes impact of purchase accounting 3 Represents the percent of total book impacted in the quarter and the weighted average rate of actual filings; 4 Period rate goes into effect (% ) Key Highlights Positioned to navigate challenging environment and return to long-term profitability targets Rate Actions3 Overall Impact Filed Effective4 Written Earned % Prem Impacted Wtd Ave Rate % Prem Impacted Wtd Ave Rate Cumulative Impact on Specialty Personal Auto Book 2Q 2021 6% 0% 6% 0% 0.0% 0.0% 3Q 2021 34% 3% 34% 3% 1.8% 0.1% 4Q 2021 ~38% ~6% ~37% ~6% ~3.4% ~0.5% 12 • Re-opening leading to significant increases in underlying combined ratio2 • Corrective actions in progress • Expect to file for rate in most programs by year-end • Earned rate expected to increase throughout 2022 and 2023 to align premium with loss cost trends Key Metrics ($ in millions) 3Q’21 3Q’20 Change vs 3Q’20 Earned Premiums $1,028 $964 6.7% Underlying Loss & LAE Ratio2 89.9% 67.6% 22pts Underlying Expense Ratio2 18.0% 18.0% 0pts Policies In-Force (000) 2,239 2,159 3.7% PIF ex. Classic Car (000) 2,236 2,143 4.3% Specialty PPA (Rate Change Activity Since 2Q21)

 
Earnings Call Presentation – 3Q 2021 Preferred Property & Casualty Insurance Segment Environmental challenges pressuring profitability amid repositioning Key Highlights 96.8 103.1 97.6 111.3 114.6 80.4 77.6 78.8 89.1 81.5 3Q20 4Q20 1Q21 2Q21 3Q21 Underlying Combined Ratio¹ Auto Home & Other Profitability impacted by frequency and severity challenges associated with re-opening from Pandemic ¹ Non-GAAP financial measure; please see reconciliation in appendix on pages 20-29 2 Represents the percent of total book impacted in the quarter and the weighted average rate of actual filings; 3 Period rate goes into effect • Underlying combined ratio1 in segment increased to 102% for the quarter - Largely driven by re-opening auto frequency and severity trends • Primary focus remains on restoring profitability • Hurricane Ida impacted pre-tax operating loss by ~$9 million (% ) 13 Key Metrics ($ in millions) 3Q’21 3Q’20 Change vs 3Q’20 Auto Earned Premiums $103 $111 (7.2)% Policies In-Force (000) 208 224 (6.9)% Home & Other Earned Premiums $61 $64 (4.4)% Policies In-Force (000) 216 218 (1.2)% Rate Actions2 Overall Impact Filed Effective3 Written Earned % Prem Impacted Wtd Ave Rate % Prem Impacted Wtd Ave Rate Cumulative Impact on Preferred Personal Auto Book 2Q 2021 12% 2% 12% 1% 0.0% 0.0% 3Q 2021 39% 4% 31% 6% 1.6% 0.1% 4Q 2021 ~57% ~13% ~31% ~6% ~3.9% ~0.4% Preferred Personal Auto (Rate Change Activity Since 2Q21)

 
Earnings Call Presentation – 3Q 2021 Life & Health Insurance Segment Delta variant increased Life benefit costs to near pandemic high Note: Chart may not balance due to rounding ¹ Excludes other income and solar credit impairment (M M ) • Life claim activity mirroring national mortality trends; subsided in 2Q21 but re-emerged with Delta variant in 3Q21 • Life Earned Premium increased $5.2M (5%) in Q3’21 to $101.5M, due to cumulative persistency improvement - Persistency remained elevated and remains above pre-Pandemic levels (2016-2019) - Annualized life new business sales remain above historical levels • Hurricane Ida negatively impacted earnings contributing to the $5.7 million pre-tax catastrophe losses Key Highlights $161 $162 $161 $164 $164 $51 $53 $51 $52 $48 3Q20 4Q20 1Q21 2Q21 3Q21 Revenues1 Earned Premiums Net Investment Income $213$212$215$211 $217 Improved Life persistency and strong new business sales position business for long-run profitability 14 Key Metrics ($ in millions) 3Q’21 3Q’20 Change vs 3Q’20 L&H Net Operating Income $3 $12 (77.0)% Life Face Value of In-Force $20,415 $19,776 3.2% Policies In-Force (000) 3,320 3,379 (1.7)%

 
Earnings Call Presentation – 3Q 2021 Appendix 15

 
Earnings Call Presentation – 3Q 2021 ….to create value for all our stakeholders A Leading Specialized Insurer Taking advantage of a diversified portfolio of niche businesses…. Founded in 1990 and headquartered in Chicago, with subsidiaries writing policies since 1911 ~6.6M Policies ~36,700 Agents/Brokers ~10,100 Employees Preferred personal lines insurance providing preferred automobile, homeowners and other personal insurance products ~$15B Assets Specialty P&C insurance providing personal and commercial automobile insurance products Life and health insurance providing life, supplemental benefits, and other property insurance products 16

 
Earnings Call Presentation – 3Q 2021 Capital Deployment Priorities Dedicated to being good stewards of capital Management and capital deployment priorities focused on maximizing shareholder value 1. Investment in the business • Fund profitable organic growth at appropriate risk-adjusted returns • Strategic investments and acquisitions that enhance the business and meet or exceed our ROE targets over time 2. Return capital to shareholders • Repurchase shares opportunistically • Maintain competitive dividends 17

 
Earnings Call Presentation – 3Q 2021 Solar Energy Investment: In Line with Environmental Impact Goals $100 million commitment to solar energy partnership investment generating attractive returns 18 • In conjunction with Sunrun, invested in a diversified basket of residential solar energy projects • Opportunity to provide renewable energy solutions for homeowners that benefits the environment • Expect to earn an attractive return that will primarily be recognized as tax credits / deductions as well as operating cash flows - Due to tax profile of transaction, this investment needs to be evaluated on after-tax basis • Majority of financial benefits will be recognized over the next two years - Will reduce our Effective Tax Rate over next two years - Largest impact is expected to have taken place in 1Q’21 Reporting on Income Statement Line Items Continue to optimize our capital management through investments with attractive returns and cash flows Key Metrics ($ in millions, except per share data) 4Q’20 1Q’21 2Q’21 3Q’21 Cumulative Revenue Reduction $ -- $15.4 $7.7 $23.8 $46.9 Per Share $ -- $(0.23) $(0.12) $(0.37) $(0.72) Tax Credit / Deductions $3.2 $28.6 $8.6 $30.6 $71.0 Per Share $0.05 $0.43 $0.13 $0.48 $1.09 Net Benefit $3.2 $13.2 $0.9 $6.8 $24.1 Per Share $0.05 $0.20 $0.01 $0.11 $0.37

 
Earnings Call Presentation – 3Q 2021 2021 Reinsurance Program Both programs were renewed with no significant change • Policy placed at 1/1/21 similar to prior three years • Total coverage: 95% of $225 million in excess of $50 million Catastrophe Reinsurance Program (Multi-Year) • Same coverage as 2020 program • Intended to reduce volatility from high- frequency, low severity events • Coverage – $50 million in excess of $60 million – $500k deductible per storm – Perils: All perils, excluding named storms (e.g., hurricanes) and earthquakes – Covered Line: Property, Fire and Dwelling Aggregate Catastrophe Program 2021 Aggregate Catastrophe Reinsurance Program 19 Retention 3-Year Term Placed 1/1/20 $100M xs $150M 31.67% Placed 3-Year Term Placed 1/1/21 $100M xs $150M 31.67% Placed* 3-Year Term Placed 1/1/20 $100M xs $50M 31.67% Placed 3-Year Term Placed 1/1/21 $100M xs $50M 31.67% Placed* 3-Year Term Placed 1/1/19 $100M xs $50M 31.67% Placed Retention 100% of first $50M R e te n tio n 5 % o f $ 2 2 5 M xs $ 5 0 M 3-Year Term Placed 1/1/19 $100M xs $150M 31.67% Placed 1-Year Term Placed 1/1/21 $25M xs $250M 95% Placed *4% was placed on an annual basis through Reinsurance Facilities

 
Earnings Call Presentation – 3Q 2021 Book Value Per Share Excluding Net Unrealized Gains on Fixed Maturities is a ratio that uses a non-GAAP financial measure. It is calculated by dividing shareholders’ equity after excluding the after-tax impact of net unrealized gains on fixed income securities by total Common Shares Issued and Outstanding. Book value per share is the most directly comparable GAAP financial measure. The Company uses the trend in book value per share, excluding the after-tax impact of net unrealized gains on fixed income securities in conjunction with book value per share to identify and analyze the change in net worth attributable to management efforts between periods. The Company believes the non-GAAP financial measure is useful to investors because it eliminates the effect of items that can fluctuate significantly from period to period and are generally driven by economic developments, primarily capital market conditions, the magnitude and timing of which are generally not influenced by management. The Company believes it enhances understanding and comparability of performance by highlighting underlying business activity and profitability drivers. Book Value Per Share Excluding Net Unrealized Gains on Fixed Maturities and Goodwill is a calculation that uses a non-GAAP financial measure. It is calculated by dividing shareholders’ equity after excluding the after-tax impact of net unrealized gains on fixed income securities and goodwill by total Common Shares Issued and Outstanding. Book value per share is the most directly comparable GAAP financial measure. The Company uses the trends in book value per share excluding the after-tax impact of net unrealized gains on fixed income securities and goodwill in conjunction with book value per share to identify and analyze the change in net worth excluding goodwill attributable to management efforts between periods. The Company believes the non-GAAP financial measure is useful to investors because it eliminates the effect of items that can fluctuate significantly from period to period and are generally driven by economic developments, primarily capital market conditions, the magnitude and timing of which are not influenced by management. The Company believes it enhances understanding and comparability of performance by highlighting underlying business activity and profitability drivers. Non-GAAP Financial Measures 20 3Q'21 2Q'21 1Q'21 4Q'20 3Q'20 2019 2018 2017 2016 Book Value Per Share 65.22$ 67.67$ 66.74$ 69.74$ 66.47$ 59.59$ 47.10$ 41.11$ 38.52$ Less: Net Unrealized Gains on Fixed Maturities Per Share (8.28) (9.28) (6.74) (11.07) (9.84) (6.51) (1.70) (5.54) (3.52) Book Value Per Share Excluding Net Unrealized Gains on Fixed Maturities 56.94$ 58.39$ 60.00$ 58.67$ 56.63$ 53.08$ 45.40$ 35.57$ 35.00$ Less: Goodwill (20.61) (20.62) (17.13) (17.02) (17.03) (16.72) (17.18) (6.28) (6.30) Book Value Per Share Excluding Net Unrealized Gains on Fixed Maturities and Goodwill 36.33$ 37.77$ 42.87$ 41.65$ 39.60$ 36.36$ 28.22$ 29.29$ 28.70$ For the Periods Ended

 
Earnings Call Presentation – 3Q 2021 Return on Equity Non-GAAP Financial Measures 21 3Q'21 2Q'21 1Q'21 4Q'20 3Q'20 2019 2018 2017 2016 Rolling 12 Month Return on Average Shareholders' Equity (5 Point Avg) 1.9% 6.4% 11.1% 9.8% 10.8% 14.8% 7.7% 5.9% 0.8% Less: Net Unrealized Gains on Fixed Maturities 0.3% 1.1% 1.5% 1.5% 1.5% 1.5% 0.6% 0.7% 0.1% Rolling 12 Month Return on Average Shareholders' Equity Excluding Net Unrealized Gains on Fixed Maturities (5 Point Avg) 2.2% 7.5% 12.6% 11.3% 12.3% 16.3% 8.3% 6.6% 0.9% Less: Goodwill 1.0% 3.3% 5.5% 5.0% 5.6% 8.4% 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) 3.2% 10.8% 18.1% 16.3% 17.9% 24.7% 11.4% 8.0% 1.1% For the Periods Ended

 
Earnings Call Presentation – 3Q 2021 Kemper believes that Adjusted Consolidated Net Operating Income (Loss) provides investors with a valuable measure of its ongoing performance because it reveals underlying operational performance trends that otherwise might be less apparent if the items were not excluded. Income (Loss) from Change in Fair Value of Equity and Convertible Securities, Net Realized Gains on Sales of Investments and Impairment Losses related to investments included in the Company’s results may vary significantly between periods and are generally driven by business decisions and external economic developments such as capital market conditions that impact the values of the Company’s investments, the timing of which is unrelated to the insurance underwriting process. Acquisition Related Transaction and Integration Costs may vary significantly between periods and are generally driven by the timing of acquisitions and business decisions which are unrelated to the insurance underwriting process. Debt Extinguishment, Pension and Other Charges relate to (i) loss from early extinguishment of debt, which is driven by the Company’s financing and refinancing decisions and capital needs, as well as external economic developments such as debt market conditions, the timing of which is unrelated to the insurance underwriting process; (ii) settlement of pension plan obligations which are business decisions are made by the Company, the timing of which is unrelated to the underwriting process; and (iii) other charges that are non-standard, not part of the ordinary course of business, and unrelated to the insurance underwriting process. Significant non-recurring items are excluded because, by their nature, they are not indicative of the Company’s business or economic trends. Non-GAAP Financial Measures 22

 
Earnings Call Presentation – 3Q 2021 Diluted Adjusted Consolidated Net Operating Income (Loss) Per Unrestricted Share is a non-GAAP financial measure computed by dividing Adjusted Consolidated Net Operating Income (Loss) attributed to unrestricted shares by the weighted-average unrestricted shares and equivalent shares outstanding. The most directly comparable GAAP financial measure is Diluted Net Income (Loss) Per Unrestricted Share. Kemper believes that Diluted Adjusted Consolidated Net Operating Income (Loss) Per Unrestricted Share provides investors with a valuable measure of its ongoing performance because it reveals underlying operational performance trends that otherwise might be less apparent if the items were not excluded. Income from change in fair value of equity and convertible securities, net realized gains on sales of investments, impairment losses related to investments, acquisition related transaction, integration and other costs and loss from early extinguishment of debt included in Kemper’s results may vary significantly between periods and are generally driven by business decisions and external economic developments such as capital market conditions that impact the values of the company’s investments, the timing of which is unrelated to the insurance underwriting process. Non-GAAP Financial Measures 23 Per Unrestricted Share 3Q21 2Q21 1Q21 4Q20 3Q20 Net Income (Loss) - Diluted (1.18)$ (0.97)$ 1.85$ 1.46$ 1.83$ Net (Income) Loss From: Change in Fair Value of Equity & Convertible Securities 0.01 (0.50) (0.62) (0.86) (0.53) Net Realized Gains on Sales of Investments (0.13) (0.24) (0.16) - (0.12) Impairment Losses 0.01 0.04 0.05 (0.01) 0.01 Acquisition Related Transaction, Integration and Other Costs 0.10 0.13 0.19 0.24 0.17 Debt Extinguishment, pension and other charges - - - 0.76 - Adj. Consolidated Net Operating Income (Loss) - Diluted (1.19)$ (1.54)$ 1.31$ 1.59$ 1.36$ For the Three Months Ended

 
Earnings Call Presentation – 3Q 2021 Underlying Combined Ratio is a non-GAAP financial measure. It is computed by adding the Current Year Non-catastrophe Losses and LAE Ratio with the Insurance Expense Ratio. The most directly comparable GAAP financial measure is the Combined Ratio, which is computed by adding total incurred losses and LAE, including the impact of catastrophe losses and loss and LAE reserve development from prior years, with the Insurance Expense Ratio. The Company believes the underlying combined ratio is useful to investors and is used by management to reveal the trends in the Company’s property and casualty insurance businesses that may be obscured by catastrophe losses and prior-year reserve development. These catastrophe losses cause loss trends to vary significantly between periods as a result of their incidence of occurrence and magnitude, and can have a significant impact on the combined ratio. Prior-year reserve developments are caused by unexpected loss development on historical reserves. Because reserve development relates to the re-estimation of losses from earlier periods, it has no bearing on the performance of our insurance products in the current period. The Company believes it is useful for investors to evaluate these components separately and in the aggregate when reviewing the Company’s underwriting performance. The underlying combined ratio should not be considered a substitute for the combined ratio and does not reflect the overall underwriting profitability of our business. Non-GAAP Financial Measures 24

 
Earnings Call Presentation – 3Q 2021 Underlying Combined Ratio – Continued Non-GAAP Financial Measures 25 3Q21 2Q21 1Q21 4Q20 3Q20 Specialty P&C Insurance Combined Ratio as Reported 111.6% 116.1% 93.5% 91.7% 86.3% Current Year Catastrophe Loss and LAE Ratio (0.3%) (0.8%) (0.2%) (0.6%) (0.2%) Prior Years Non-Catastrophe Losses and LAE (2.4%) (8.0%) 0.2% 0.2% (0.2%) Prior Years Catastrophe Losses and LAE Ratio 0.0% 0.0% 0.0% 0.0% 0.0% Underlying Combined Ratio 108.9% 107.3% 93.5% 91.3% 85.9% Preferred P&C Insurance Combined Ratio as Reported 116.6% 118.9% 105.4% 96.2% 129.9% Current Year Catastrophe Loss and LAE Ratio (14.3%) (14.8%) (14.8%) 3.1% (35.5%) Prior Years Non-Catastrophe Losses and LAE 0.0% (3.1%) (0.1%) (5.6%) (3.6%) Prior Years Catastrophe Losses and LAE Ratio (0.1%) 2.1% 0.2% (0.1%) (0.1%) Underlying Combined Ratio 102.2% 103.1% 90.7% 93.6% 90.7% Preferred Auto Combined Ratio as Reported 117.4% 117.3% 99.5% 112.3% 103.5% Current Year Catastrophe Loss and LAE Ratio (2.6%) (2.7%) (0.6%) (0.4%) (1.6%) Prior Years Non-Catastrophe Losses and LAE (0.1%) (3.5%) (1.2%) (9.2%) (5.3%) Prior Years Catastrophe Losses and LAE Ratio (0.1%) 0.2% (0.1%) 0.4% 0.2% Underlying Combined Ratio 114.6% 111.3% 97.6% 103.1% 96.8% Preferred Home & Other Combined Ratio as Reported 115.2% 121.8% 115.7% 68.6% 175.6% Current Year Catastrophe Loss and LAE Ratio (33.9%) (35.8%) (39.5%) 9.2% (94.1%) Prior Years Non-Catastrophe Losses and LAE 0.2% (2.3%) 1.9% 0.6% (0.6%) Prior Years Catastrophe Losses and LAE Ratio 0.0% 5.4% 0.7% (0.8%) (0.5%) Underlying Combined Ratio 81.5% 89.1% 78.8% 77.6% 80.4% For the Three Months Ended

 
Earnings Call Presentation – 3Q 2021 As Adjusted for Acquisition amounts are non-GAAP financial measures. Subsequent to the applicable acquisitions, the As Adjusted for Acquisitions amounts are computed by subtracting the impact of purchase accounting adjustments from the comparable consolidated GAAP financial measure reported by Kemper. The Company believes computing and presenting results on an adjusted basis are useful to investors and are used by management to provide meaningful and comparable year-over-year comparisons. Non-GAAP Financial Measures 26

 
Earnings Call Presentation – 3Q 2021 As Adjusted for Acquisition – Continued Non-GAAP Financial Measures ¹ As Adjusted is a non-GAAP measure, which is comprised by excluding impact of purchase accounting in 2020 and 2021 and including historical results of Kemper and AAC in periods prior to acquisition date of April 1, 2021. 27 Consolidated Financial Highlights ($ in millions, except per share data) 30-Sep-21 30-Jun-21 31-Mar-21 31-Dec-20 30-Sep-20 Earned Premiums Kemper - GAAP As Reported 1,356.1$ 1,337.7$ 1,200.8$ 1,214.0$ 1,206.5$ AAC - Prior to Acquisition - - 87.9 91.2 92.6 As Adjusted 1 1,356.1$ 1,337.7$ 1,288.7$ 1,305.2$ 1,299.1$ Net Income (Loss) Kemper - GAAP As Reported (75.3)$ (62.6)$ 123.2$ 97.5$ 122.3$ AAC - Prior to Acquisition - - 6.1 16.9 14.4 Less: Impact of Purchase Accounting (6.7) (10.1) (1.8) (3.2) (3.2) As Adjusted 1 (68.6)$ (52.5)$ 131.1$ 117.6$ 139.9$ As Adjusted 1 - Per Diluted Share (1.08)$ (0.82)$ 1.97$ 1.77$ 2.10$ Adjusted Consolidated Net Operating Income (Loss) Kemper - GAAP As Reported (75.8)$ (99.4)$ 87.2$ 105.8$ 90.9$ AAC - Prior to Acquisition - - 12.3 9.5 12.4 Less: Impact of Purchase Accounting (6.7) (10.1) (1.8) (3.2) (3.2) As Adjusted 1 (69.1)$ (89.3)$ 101.3$ 118.5$ 106.5$ As Adjusted 1 - Per Diluted Share (1.08)$ (1.39)$ 1.52$ 1.78$ 1.60$ Three Months Ended

 
Earnings Call Presentation – 3Q 2021 As Adjusted for Acquisition – Continued Non-GAAP Financial Measures ¹ As Adjusted is a non-GAAP measure, which is comprised by excluding impact of purchase accounting in 2020 and 2021 and including historical results of Kemper and AAC in periods prior to acquisition date of April 1, 2021. 28 Specialty P&C Insurance Segment ($ in millions) Three Months Ended YTD 30-Sep-21 30-Jun-21 31-Mar-21 31-Dec-20 30-Sep-20 30-Jun-20 31-Mar-20 Earned Premiums Kemper Specialty P&C - GAAP As Reported 1,028.3$ 1,010.3$ 877.6$ 882.4$ 871.4$ 759.0$ 822.5$ AAC - Prior to Acquisition - - 87.9 91.2 92.6 92.0 90.3 As Adjusted 1 1,028.3$ 1,010.3$ 965.5$ 973.6$ 964.0$ 851.0$ 912.8$ Current Year Non-CAT Losses and LAE Kemper Specialty P&C - GAAP As Reported 924.4$ 877.4$ 650.0$ 626.2$ 589.0$ 515.8$ 619.8$ AAC - Prior to Acquisition - - 62.0 62.4 62.6 62.2 62.6 Less: Impact of Purchase Accounting Amortization of Fair Value Adjustment to Unpaid Loss and LAE 0.3 0.3 0.4 0.4 0.3 0.8 0.7 As Adjusted 1 924.1$ 877.1$ 711.6$ 688.2$ 651.3$ 577.2$ 681.7$ Insurance Expenses Kemper Specialty P&C - GAAP As Reported 194.2$ 205.6$ 170.3$ 179.1$ 159.5$ 161.2$ 152.1$ AAC - Prior to Acquisition - - 13.1 17.2 18.3 19.7 15.4 Less: Impact of Purchase Accounting 8.6 12.9 2.3 4.1 4.2 4.5 5.2 As Adjusted 1 185.6$ 192.7$ 181.1$ 192.2$ 173.6$ 176.4$ 162.3$ As Adjusted 1 Underlying Combined Ratio As Adjusted 1 Underlying Loss & LAE Ratio 89.9% 86.8% 73.7% 70.7% 67.6% 67.8% 74.7% As Adjusted 1 Expense Ratio 18.0% 19.2% 18.8% 19.7% 18.0% 20.7% 17.8% As Adjusted 1 Underlying Combined Ratio 107.9% 105.9% 92.5% 90.4% 85.6% 88.6% 92.5%

 
Earnings Call Presentation – 3Q 2021 As Adjusted for Acquisition – Continued Non-GAAP Financial Measures ¹ As Adjusted is a non-GAAP measure, which is comprised by excluding impact of purchase accounting in 2020 and 2021 and including historical results of Kemper and AAC in periods prior to acquisition date of April 1, 2021. 29 Specialty Personal Automobile Insurance ($ in millions) 30-Sep-21 30-Jun-21 31-Mar-21 31-Dec-20 30-Sep-20 Earned Premiums Kemper Specialty P&C - GAAP As Reported 920.6$ 909.6$ 785.4$ 796.1$ 792.2$ AAC - Prior to Acquisition - - 87.9 91.2 92.6 As Adjusted 1 920.6$ 909.6$ 873.3$ 887.3$ 884.8$ Current Year Non-CAT Losses and LAE Kemper Specialty P&C - GAAP As Reported 843.9$ 805.1$ 586.4$ 569.1$ 543.4$ AAC - Prior to Acquisition - - 62.0 62.4 62.6 Less: Impact of Purchase Accounting Amortization of Fair Value Adjustment to Unpaid Loss and LAE 0.3 0.2 0.3 0.3 0.2 As Adjusted 1 843.6$ 804.9$ 648.1$ 631.2$ 605.8$ Insurance Expenses Kemper Specialty P&C - GAAP As Reported 176.0$ 187.7$ 155.3$ 162.8$ 145.6$ AAC - Prior to Acquisition - - 13.1 17.2 18.3 Less: Impact of Purchase Accounting 8.1 12.4 1.8 3.3 3.2 As Adjusted 1 167.9$ 175.3$ 166.6$ 176.7$ 160.7$ As Adjusted 1 Underlying Combined Ratio As Adjusted 1 Underlying Loss & LAE Ratio 91.6% 88.5% 74.2% 71.1% 68.5% As Adjusted 1 Expense Ratio 18.2% 19.3% 19.1% 19.9% 18.2% As Adjusted 1 Underlying Combined Ratio 109.9% 107.8% 93.3% 91.1% 86.6% Three Months Ended