KMPR 8-K
KEMPER Corp (KMPR)
8-K
2026-08-05
For: 2026-08-05
View Original
Added on
August 06, 2026
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): August 5, 2026
(Exact name of registrant as specified in its charter)
Commission File Number: 001-18298
| (State or other jurisdiction of incorporation) | (IRS Employer Identification No.) | |||||||
(Address of principal executive offices, including zip code)
(Registrant’s telephone number, including area code)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the Registrant under any of the following provisions (see General Instruction A.2.below):
| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||
| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||||
| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |||||
| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | |||||
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
| Emerging Growth Company | ||||||||
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition
period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of
the Exchange Act. ¨
Section 2. – Financial Information
| Item 2.02. | Results of Operations and Financial Condition. | ||||
On August 5, 2026 , Kemper Corporation ("Kemper" or the "Registrant") issued a press release announcing its financial results for the second quarter of 2026 and the availability of Kemper’s second quarter investor supplement and earnings call presentation on its website, kemper.com. The press release, the investor supplement and the earnings call presentation are furnished as Exhibits 99.1, 99.2 and 99.3, respectively, to this report.
Section 9. – Financial Statements and Exhibits.
| Item 9.01. | Financial Statements and Exhibits. | ||||
(d) Exhibits
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| Kemper Corporation | ||||||||||||||
| Date: | August 5, 2026 | /s/ BRADLEY T. CAMDEN | ||||||||||||
| Bradley T. Camden | ||||||||||||||
| Executive Vice President and Chief Financial Officer (Principal Financial Officer) | ||||||||||||||
Exhibit 99.1
 | Kemper Corporation 200 East Randolph Street Suite 3300 Chicago, IL 60601 kemper.com | ||||
| Press Release | |||||
Kemper Reports Second Quarter 2026 Operating Results*
CHICAGO, August 5, 2026 — Kemper Corporation (NYSE: KMPR) reported second quarter 2026 results, which included a non-cash goodwill impairment of $460 million. This has no impact on the cash-generating ability of our businesses, statutory capital, holding company liquidity, or compliance with our debt and revolving credit covenants. Including this charge, Kemper reported a net loss of $464.8 million, or $(7.90) per share, for the second quarter of 2026, compared to net income of $72.6 million, or $1.12 per diluted share, for the second quarter of 2025.
Adjusted Consolidated Net Operating Income1 was $26.3 million, or $0.45 per share, for the second quarter of 2026, compared to Adjusted Consolidated Net Operating Income1 of $84.1 million, or $1.30 per diluted share, for the second quarter of 2025.
Summary of quarterly performance:
•Underlying operating performance improved sequentially; reported results included a non-cash goodwill impairment and valuation allowance
•Delivered Adjusted Consolidated Net Operating Income¹ of $26.3 million, or $0.45 per share
•Personal Auto profitability improved, reflecting underwriting actions and continued expense discipline
•Commercial Auto maintained strong underlying performance; reported profitability was impacted by prior-year reserve development
•Life business continued to generate stable operating earnings
•Strengthened leadership and organizational alignment to improve accountability and execution
“This quarter reflects improving underlying operating performance and the actions we’re taking to restore profitability,” said President and CEO Stephen J. McAnena. “While there is more work ahead, we have a clear understanding of where performance must improve and are taking decisive actions to strengthen execution, sharpen accountability, and improve returns across our business. I am confident these actions will position Kemper to deliver stronger, more consistent results and create long-term value for shareholders.”
*Unless otherwise specified, discussion of our second quarter 2026 results is focused on net income attributable to Kemper Corporation common shareholders, which does not include financial results from Kemper Reciprocal that are presented within the condensed consolidated financial results in this release. The results of Kemper Reciprocal are consolidated under US GAAP.
1 Non-GAAP financial measure. All Non-GAAP financial measures are denoted with footnote 1 throughout this release. See “Use of Non-GAAP Financial Measures” for additional information.
| Three Months Ended | Six Months Ended | |||||||||||||||||||||||||
| (Dollars in Millions, Except Per Share Amounts) (Unaudited) | Jun 30, 2026 | Jun 30, 2025 | Jun 30, 2026 | Jun 30, 2025 | ||||||||||||||||||||||
| Net (Loss) Income | $ | (464.8) | $ | 72.6 | $ | (466.5) | $ | 172.3 | ||||||||||||||||||
Adjusted Consolidated Net Operating Income1 | $ | 26.3 | $ | 84.1 | $ | 38.8 | $ | 190.5 | ||||||||||||||||||
Impact of Catastrophe Losses and Related Loss Adjustment Expense (LAE) on Net (Loss) Income | $ | (5.0) | $ | (6.1) | $ | (8.0) | $ | (11.7) | ||||||||||||||||||
Diluted Net (Loss) Income Per Share From: | ||||||||||||||||||||||||||
| Net (Loss) Income | $ | (7.90) | $ | 1.12 | $ | (7.93) | $ | 2.66 | ||||||||||||||||||
Adjusted Consolidated Net Operating Income1 | $ | 0.45 | $ | 1.30 | $ | 0.66 | $ | 2.95 | ||||||||||||||||||
Impact of Catastrophe Losses and Related LAE on Net (Loss) Income Per Share | $ | (0.09) | $ | (0.09) | $ | (0.14) | $ | (0.18) | ||||||||||||||||||
Revenues
Total revenues for the second quarter of 2026 decreased $132.9 million to $1,092.7 million compared to the second quarter of 2025. The decline was primarily due to lower Specialty Personal Automobile volumes and higher impairment losses, partially offset by higher Specialty Commercial Automobile volumes and net investment income.
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 Ended | Six Months Ended | |||||||||||||||||||||||||
| (Dollars in Millions) (Unaudited) | Jun 30, 2026 | Jun 30, 2025 | Jun 30, 2026 | Jun 30, 2025 | ||||||||||||||||||||||
| Segment Adjusted Net Operating Income: | ||||||||||||||||||||||||||
| Specialty Property & Casualty Insurance | $ | 15.8 | $ | 79.0 | $ | 15.9 | $ | 176.9 | ||||||||||||||||||
| Life Insurance | 18.3 | 12.6 | 36.3 | 29.8 | ||||||||||||||||||||||
| Total Segment Adjusted Net Operating Income | 34.1 | 91.6 | 52.2 | 206.7 | ||||||||||||||||||||||
| Corporate and Other Adjusted Net Operating Loss | (9.0) | (10.3) | (17.3) | (21.7) | ||||||||||||||||||||||
| Less: Net Loss attributable to Noncontrolling Interest | (1.2) | (2.8) | (3.9) | (5.5) | ||||||||||||||||||||||
Adjusted Consolidated Net Operating Income1 | 26.3 | 84.1 | 38.8 | 190.5 | ||||||||||||||||||||||
Net (Loss) Income From: | ||||||||||||||||||||||||||
| Change in Fair Value of Equity and Convertible Securities | (1.4) | (0.4) | (2.4) | (0.3) | ||||||||||||||||||||||
| Net Realized Investment Gains (Losses) | 0.5 | (0.1) | 0.8 | 0.6 | ||||||||||||||||||||||
| Impairment Losses | (18.8) | (2.8) | (20.1) | (2.6) | ||||||||||||||||||||||
| Acquisition and Disposition Related Transaction, Integration, Restructuring and Other Costs | (11.6) | (3.8) | (16.6) | (8.0) | ||||||||||||||||||||||
Debt Extinguishment and Other Charges | — | — | — | 0.4 | ||||||||||||||||||||||
| Goodwill Impairment | (460.0) | — | (460.0) | — | ||||||||||||||||||||||
| Non-Core Operations | 0.2 | (4.4) | (7.0) | (8.3) | ||||||||||||||||||||||
Net (Loss) Income attributable to Kemper Corporation | $ | (464.8) | $ | 72.6 | $ | (466.5) | $ | 172.3 | ||||||||||||||||||
The Specialty Property and Casualty Insurance segment reported adjusted net operating income of $15.8 million in the second quarter of 2026, compared to adjusted net operating income of $79.0 million in the second quarter of 2025. This decrease was due primarily to an increase in our Specialty Personal Automobile Underlying loss and LAE ratio1. Specialty Personal Automobile’s Underlying loss and LAE ratio1 was 83.8 percent, compared to 72.5 percent in the second quarter of 2025. The increase was primarily driven by higher claim severity and frequency in California.
The Life Insurance segment reported adjusted net operating income of $18.3 million for the second quarter of 2026, compared to adjusted net operating income of $12.6 million in the second quarter of 2025. The improvement was primarily driven by higher Net Investment Income and Earned Premiums.
3
Capital
Total Kemper Corporation Shareholders’ Equity as of June 30, 2026 was $2,192.8 million, a decrease of $488.6 million, or 18 percent, since year-end 2025 primarily driven by net loss for the period. Kemper and its direct non-insurance subsidiaries ended the quarter with cash and investments of $130.0 million, and $350.0 million of available borrowing capacity under the revolving credit agreement.
On May 6, 2026, Kemper announced that its Board of Directors declared a quarterly dividend of $0.32 per share, or $19.3 million. The dividend was paid on June 2, 2026, to its shareholders of record as of May 18, 2026.
Kemper ended the quarter with a book value per share of $37.22, a decrease of 19 percent from $45.71 at the end of 2025. Adjusted book value per share1 was $27.55 at the end of the quarter, compared to $28.06 at the end of 2025.
4
Unaudited Condensed Consolidated Statements of (Loss) Income for the three and six months ended June 30, 2026 and 2025 are presented below.
| Three Months Ended | Six Months Ended | |||||||||||||||||||||||||
| (Dollars in Millions, Except Per Share Amounts) | Jun 30, 2026 | Jun 30, 2025 | Jun 30, 2026 | Jun 30, 2025 | ||||||||||||||||||||||
| Revenues: | ||||||||||||||||||||||||||
Earned Premiums2 | $ | 1,011.6 | $ | 1,130.8 | $ | 2,010.9 | $ | 2,218.7 | ||||||||||||||||||
| Net Investment Income | 105.4 | 95.9 | 212.5 | 197.1 | ||||||||||||||||||||||
| Other Income | 0.5 | 3.1 | 3.9 | 5.7 | ||||||||||||||||||||||
| Change in Fair Value of Equity and Convertible Securities | (1.7) | (0.5) | (3.0) | (0.4) | ||||||||||||||||||||||
| Net Realized Investment Gains (Losses) | 0.6 | (0.1) | 1.0 | 0.8 | ||||||||||||||||||||||
| Impairment Losses | (23.7) | (3.6) | (25.4) | (3.3) | ||||||||||||||||||||||
| Total Revenues | 1,092.7 | 1,225.6 | 2,199.9 | 2,418.6 | ||||||||||||||||||||||
| Expenses: | ||||||||||||||||||||||||||
Policyholders’ Benefits and Incurred Losses and Loss Adjustment Expenses3 | 818.4 | 829.1 | 1,647.2 | 1,596.4 | ||||||||||||||||||||||
| Insurance and Other Expenses | 272.4 | 300.0 | 549.4 | 594.5 | ||||||||||||||||||||||
| Interest Expense | 8.9 | 9.0 | 18.2 | 20.4 | ||||||||||||||||||||||
| Goodwill Impairment | 460.0 | — | 460.0 | — | ||||||||||||||||||||||
| Total Expenses | 1,559.7 | 1,138.1 | 2,674.8 | 2,211.3 | ||||||||||||||||||||||
| (Loss) Income before Income Taxes | (467.0) | 87.5 | (474.9) | 207.3 | ||||||||||||||||||||||
| Income Tax (Benefit) Expense | (1.0) | 17.7 | (4.5) | 40.5 | ||||||||||||||||||||||
| Net (Loss) Income | (466.0) | 69.8 | (470.4) | 166.8 | ||||||||||||||||||||||
| Less: Net Loss attributable to Noncontrolling Interest | (1.2) | (2.8) | (3.9) | (5.5) | ||||||||||||||||||||||
Net (Loss) Income attributable to Kemper Corporation | $ | (464.8) | $ | 72.6 | $ | (466.5) | $ | 172.3 | ||||||||||||||||||
Net (Loss) Income attributable to Kemper Corporation per Unrestricted Share: | ||||||||||||||||||||||||||
| Basic | $ | (7.90) | $ | 1.13 | $ | (7.93) | $ | 2.69 | ||||||||||||||||||
| Diluted | $ | (7.90) | $ | 1.12 | $ | (7.93) | $ | 2.66 | ||||||||||||||||||
| Weighted-average Outstanding (Shares in Thousands): | ||||||||||||||||||||||||||
| Unrestricted Shares - Basic | 58,866.0 | 63,938.9 | 58,804.7 | 63,912.9 | ||||||||||||||||||||||
| Unrestricted Shares and Equivalent Shares - Diluted | 58,866.0 | 64,600.1 | 58,804.7 | 64,626.5 | ||||||||||||||||||||||
| Dividends Paid to Shareholders per Share | $ | 0.32 | $ | 0.32 | $ | 0.64 | $ | 0.64 | ||||||||||||||||||
2 Includes a remeasurement loss related to the deferred profit liability within the Life insurance business of $0.2 million and $0.9 million for the three months ended June 30, 2026 and 2025, respectively, and a remeasurement gain of $0.7 million for the six months ended June 30, 2026 and a remeasurement loss of $0.7 million for the six months ended June 30, 2025. | ||||||||||||||||||||||||||
3 Includes a remeasurement gain of $1.9 million and $0.2 million related to the liability for future policyholder benefits within the Life insurance business for the three months ended June 30, 2026 and 2025, respectively, and a remeasurement gain of $2.3 million for the six months ended June 30, 2026. There was no remeasurement gain or loss for the six months ended June 30, 2025. | ||||||||||||||||||||||||||
5
Unaudited business segment revenues for the three and six months ended June 30, 2026 and 2025 are presented below.
| Three Months Ended | Six Months Ended | |||||||||||||||||||||||||
| (Dollars in Millions) | Jun 30, 2026 | Jun 30, 2025 | Jun 30, 2026 | Jun 30, 2025 | ||||||||||||||||||||||
| REVENUES: | ||||||||||||||||||||||||||
| Specialty Property & Casualty Insurance: | ||||||||||||||||||||||||||
| Earned Premiums: | ||||||||||||||||||||||||||
| Personal Automobile | $ | 647.4 | $ | 789.3 | $ | 1,294.4 | $ | 1,543.0 | ||||||||||||||||||
| Commercial Automobile | 249.2 | 221.5 | 487.4 | 430.0 | ||||||||||||||||||||||
| Total Earned Premiums | 896.6 | 1,010.8 | 1,781.8 | 1,973.0 | ||||||||||||||||||||||
| Net Investment Income | 53.7 | 49.6 | 109.0 | 100.1 | ||||||||||||||||||||||
| Other Income | 1.3 | 2.7 | 4.0 | 4.0 | ||||||||||||||||||||||
| Total Specialty Property & Casualty Insurance Revenues | 951.6 | 1,063.1 | 1,894.8 | 2,077.1 | ||||||||||||||||||||||
| Life Insurance: | ||||||||||||||||||||||||||
| Earned Premiums: | ||||||||||||||||||||||||||
Life | 87.5 | 84.8 | 173.1 | 168.5 | ||||||||||||||||||||||
| Accident & Health | 5.4 | 5.4 | 10.7 | 10.9 | ||||||||||||||||||||||
| Property | 9.8 | 10.3 | 19.7 | 20.8 | ||||||||||||||||||||||
| Total Earned Premiums | 102.7 | 100.5 | 203.5 | 200.2 | ||||||||||||||||||||||
| Net Investment Income | 49.3 | 44.7 | 98.0 | 93.1 | ||||||||||||||||||||||
| Other Income | 0.4 | 0.3 | 0.7 | 1.0 | ||||||||||||||||||||||
| Total Life Insurance Revenues | 152.4 | 145.5 | 302.2 | 294.3 | ||||||||||||||||||||||
| Total Segment Revenues | 1,104.0 | 1,208.6 | 2,197.0 | 2,371.4 | ||||||||||||||||||||||
Change in Fair Value of Equity and Convertible Securities | (1.7) | (0.5) | (3.0) | (0.4) | ||||||||||||||||||||||
| Non-Core Operations | 14.4 | 21.3 | 29.8 | 49.2 | ||||||||||||||||||||||
Net Realized Investment Gains (Losses), Impairment Losses, and Other2 | (24.0) | (3.8) | (23.9) | (1.6) | ||||||||||||||||||||||
| Total Revenues | $ | 1,092.7 | $ | 1,225.6 | $ | 2,199.9 | $ | 2,418.6 | ||||||||||||||||||
2 In the fourth quarter of 2025, the Company elected to change the presentation of Net Realized Investment Gains (Losses), Impairment Losses, and Other by combining them into a single line item. Prior-period amounts have been recast to conform to the current-period presentation. | ||||||||||||||||||||||||||
6
KEMPER CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in Millions)
(Unaudited)
| Jun 30, 2026 | Dec 31, 2025 | ||||||||||
Assets: | |||||||||||
Investments: | |||||||||||
Fixed Maturities at Fair Value | $ | 6,721.1 | $ | 6,743.3 | |||||||
Equity Securities at Fair Value | 309.6 | 306.4 | |||||||||
| Equity Method Limited Liability Investments | 183.0 | 176.0 | |||||||||
| Short-term Investments at Cost which Approximates Fair Value | 271.4 | 313.5 | |||||||||
Company-Owned Life Insurance | 598.2 | 579.2 | |||||||||
Loans to Policyholders | 279.4 | 279.9 | |||||||||
| Other Investments | 282.7 | 271.3 | |||||||||
Total Investments | 8,645.4 | 8,669.6 | |||||||||
Cash | 80.3 | 124.3 | |||||||||
Receivables from Policyholders | 966.3 | 965.2 | |||||||||
Other Receivables | 181.8 | 184.7 | |||||||||
Deferred Policy Acquisition Costs | 675.0 | 655.4 | |||||||||
Goodwill | 783.5 | 1,250.7 | |||||||||
Current Income Tax Assets | 48.7 | 40.7 | |||||||||
| Deferred Income Tax Assets | 97.2 | 96.9 | |||||||||
Other Assets | 381.5 | 410.7 | |||||||||
| Assets of Consolidated Variable Interest Entity: | |||||||||||
| Fixed Maturities at Fair Value | 44.7 | 42.1 | |||||||||
| Short-term Investments at Cost which Approximates Fair Value | 9.4 | 14.4 | |||||||||
| Cash | 0.9 | 1.7 | |||||||||
| Receivables from Policyholders | 6.2 | 10.4 | |||||||||
Other Receivables | 0.5 | 0.4 | |||||||||
| Deferred Policy Acquisition Costs | 0.8 | 1.3 | |||||||||
| Deferred Income Tax Assets | 4.1 | 4.2 | |||||||||
| Total Assets | $ | 11,926.3 | $ | 12,472.7 | |||||||
7
KEMPER CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS (Continued)
(Dollars in Millions)
(Unaudited)
| Jun 30, 2026 | Dec 31, 2025 | ||||||||||
Liabilities and Shareholders’ Equity: | |||||||||||
Insurance Reserves: | |||||||||||
| Life and Health | $ | 3,278.1 | $ | 3,287.5 | |||||||
| Property and Casualty | 3,065.1 | 2,910.8 | |||||||||
Total Insurance Reserves | 6,343.2 | 6,198.3 | |||||||||
Unearned Premiums | 1,227.5 | 1,233.1 | |||||||||
| Policyholder Obligations | 541.1 | 608.0 | |||||||||
Deferred Income Tax Liabilities | — | 14.8 | |||||||||
Accrued Expenses and Other Liabilities | 651.7 | 762.6 | |||||||||
| Long-term Debt, Non-Current, at Amortized Cost | 944.5 | 943.5 | |||||||||
| Liabilities of Consolidated Variable Interest Entity: | |||||||||||
| Insurance Reserves | 31.1 | 29.4 | |||||||||
| Unearned Premiums | 7.4 | 12.1 | |||||||||
| Accrued Expenses and Other Liabilities | 2.5 | 1.5 | |||||||||
| Total Liabilities | 9,749.0 | 9,803.3 | |||||||||
| Kemper Corporation Shareholders’ Equity: | |||||||||||
Common Stock | 5.9 | 5.9 | |||||||||
Paid-in Capital | 1,738.5 | 1,723.9 | |||||||||
Retained Earnings | 653.7 | 1,157.8 | |||||||||
| Accumulated Other Comprehensive Loss | (205.3) | (206.2) | |||||||||
| Total Kemper Corporation Shareholders’ Equity | 2,192.8 | 2,681.4 | |||||||||
| Noncontrolling Interest | (15.5) | (12.0) | |||||||||
| Total Shareholders’ Equity | 2,177.3 | 2,669.4 | |||||||||
| Total Liabilities and Shareholders’ Equity | $ | 11,926.3 | $ | 12,472.7 | |||||||
8
Unaudited selected financial information for the Specialty Property & Casualty Insurance segment follows.
| Three Months Ended | Six Months Ended | |||||||||||||||||||||||||
| (Dollars in Millions) | Jun 30, 2026 | Jun 30, 2025 | Jun 30, 2026 | Jun 30, 2025 | ||||||||||||||||||||||
Results of Operations | ||||||||||||||||||||||||||
| Net Premiums Written | $ | 854.7 | $ | 1,001.5 | $ | 1,779.7 | $ | 2,070.3 | ||||||||||||||||||
| Earned Premiums | $ | 896.6 | $ | 1,010.8 | $ | 1,781.8 | $ | 1,973.0 | ||||||||||||||||||
| Net Investment Income | 53.7 | 49.6 | 109.0 | 100.1 | ||||||||||||||||||||||
| Other Income | 1.3 | 2.7 | 4.0 | 4.0 | ||||||||||||||||||||||
| Total Revenues | 951.6 | 1,063.1 | 1,894.8 | 2,077.1 | ||||||||||||||||||||||
| Incurred Losses and LAE related to: | ||||||||||||||||||||||||||
| Current Year: | ||||||||||||||||||||||||||
| Non-catastrophe Losses and LAE | 732.7 | 730.1 | 1,475.5 | 1,412.4 | ||||||||||||||||||||||
| Catastrophe Losses and LAE | 6.1 | 5.3 | 7.4 | 9.1 | ||||||||||||||||||||||
| Prior Years: | ||||||||||||||||||||||||||
| Non-catastrophe Losses and LAE | 9.1 | 13.6 | 12.3 | 14.1 | ||||||||||||||||||||||
| Catastrophe Losses and LAE | 0.1 | 0.4 | 0.5 | 0.6 | ||||||||||||||||||||||
| Total Incurred Losses and LAE | 748.0 | 749.4 | 1,495.7 | 1,436.2 | ||||||||||||||||||||||
| Insurance Expenses | 184.3 | 214.8 | 380.5 | 419.9 | ||||||||||||||||||||||
| Segment Adjusted Operating Income | 19.3 | 98.9 | 18.6 | 221.0 | ||||||||||||||||||||||
| Income Tax Expense | 3.5 | 19.9 | 2.7 | 44.1 | ||||||||||||||||||||||
| Total Segment Adjusted Net Operating Income | $ | 15.8 | $ | 79.0 | $ | 15.9 | $ | 176.9 | ||||||||||||||||||
| Ratios Based On Earned Premiums | ||||||||||||||||||||||||||
| Current Year Non-catastrophe Losses and LAE Ratio | 81.7 | % | 72.3 | % | 82.8 | % | 71.6 | % | ||||||||||||||||||
| Current Year Catastrophe Losses and LAE Ratio | 0.7 | 0.5 | 0.4 | 0.5 | ||||||||||||||||||||||
| Prior Years Non-catastrophe Losses and LAE Ratio | 1.0 | 1.3 | 0.7 | 0.7 | ||||||||||||||||||||||
| Prior Years Catastrophe Losses and LAE Ratio | — | — | — | — | ||||||||||||||||||||||
| Total Incurred Loss and LAE Ratio | 83.4 | 74.1 | 83.9 | 72.8 | ||||||||||||||||||||||
| Insurance Expense Ratio | 20.6 | 21.3 | 21.4 | 21.3 | ||||||||||||||||||||||
| Combined Ratio | 104.0 | % | 95.4 | % | 105.3 | % | 94.1 | % | ||||||||||||||||||
Underlying Combined Ratio1 | ||||||||||||||||||||||||||
| Current Year Non-catastrophe Losses and LAE Ratio | 81.7 | % | 72.3 | % | 82.8 | % | 71.6 | % | ||||||||||||||||||
| Insurance Expense Ratio | 20.6 | 21.3 | 21.4 | 21.3 | ||||||||||||||||||||||
Underlying Combined Ratio1 | 102.3 | % | 93.6 | % | 104.2 | % | 92.9 | % | ||||||||||||||||||
| Non-GAAP Measure Reconciliation | ||||||||||||||||||||||||||
| Combined Ratio | 104.0 | % | 95.4 | % | 105.3 | % | 94.1 | % | ||||||||||||||||||
| Less: | ||||||||||||||||||||||||||
| Current Year Catastrophe Losses and LAE Ratio | 0.7 | 0.5 | 0.4 | 0.5 | ||||||||||||||||||||||
| Prior Years Non-catastrophe Losses and LAE Ratio | 1.0 | 1.3 | 0.7 | 0.7 | ||||||||||||||||||||||
| Prior Years Catastrophe Losses and LAE Ratio | — | — | — | — | ||||||||||||||||||||||
Underlying Combined Ratio1 | 102.3 | % | 93.6 | % | 104.2 | % | 92.9 | % | ||||||||||||||||||
9
Unaudited selected financial information for the Life Insurance segment follows.
| Three Months Ended | Six Months Ended | |||||||||||||||||||||||||
| (Dollars in Millions) | Jun 30, 2026 | Jun 30, 2025 | Jun 30, 2026 | Jun 30, 2025 | ||||||||||||||||||||||
Results of Operations | ||||||||||||||||||||||||||
| Earned Premiums | $ | 102.7 | $ | 100.5 | $ | 203.5 | $ | 200.2 | ||||||||||||||||||
| Net Investment Income | 49.3 | 44.7 | 98.0 | 93.1 | ||||||||||||||||||||||
| Other Income | 0.4 | 0.3 | 0.7 | 1.0 | ||||||||||||||||||||||
| Total Revenues | 152.4 | 145.5 | 302.2 | 294.3 | ||||||||||||||||||||||
| Policyholders’ Benefits and Incurred Losses and LAE | 63.5 | 63.5 | 127.5 | 125.7 | ||||||||||||||||||||||
| Insurance Expenses | 67.3 | 67.7 | 131.9 | 134.1 | ||||||||||||||||||||||
| Segment Adjusted Operating Income | 21.6 | 14.3 | 42.8 | 34.5 | ||||||||||||||||||||||
| Income Tax Expense | 3.3 | 1.7 | 6.5 | 4.7 | ||||||||||||||||||||||
| Total Segment Adjusted Net Operating Income | $ | 18.3 | $ | 12.6 | $ | 36.3 | $ | 29.8 | ||||||||||||||||||
Use of Non-GAAP Financial Measures
Adjusted Consolidated Net Operating Income is an after-tax, non-GAAP financial measure and is computed by excluding from Net (Loss) Income attributable to Kemper Corporation the after-tax impact of:
(i) Change in Fair Value of Equity and Convertible Securities;
(ii) Net Realized Investment Gains (Losses);
(iii) Impairment Losses;
(iv) Acquisition and Disposition Related Transaction, Integration, Restructuring and Other Costs;
(v) Debt Extinguishment and Other Charges;
(vi) Goodwill Impairment;
(vii) Non-Core Operations; and
(viii) Significant non-recurring or infrequent items that may not be indicative of ongoing operations
Significant non-recurring items are excluded when (a) the nature of the charge or gain is such that it is reasonably unlikely to recur within two years, and (b) there has been no similar charge or gain within the prior two years. The most directly comparable GAAP financial measure is Net (Loss) Income attributable to Kemper Corporation. There were no applicable significant non-recurring items that Kemper excluded from the calculation of Adjusted Consolidated Net Operating Income for the three and six months ended June 30, 2026 or 2025.
10
Kemper 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. Change in Fair Value of Equity and Convertible Securities, Net Realized Investment Gains (Losses) and Impairment Losses related to investments included in Kemper’s results may vary significantly between periods and are generally driven by business decisions and external economic developments such as capital market conditions that impact the values of Kemper’s investments, the timing of which is unrelated to the insurance underwriting process. Acquisition and Disposition Related Transaction, Integration, Restructuring and Other Costs may vary significantly between periods and are generally driven by the timing of business decisions which are unrelated to the insurance underwriting process. In the second quarter of 2026, the Company completed the sale of Newins and recorded a gain in connection with the transaction. In the third quarter of 2025, a restructuring program was launched to achieve operational and organizational efficiencies. The Company will continue to evaluate additional efficiency opportunities through 2027. Debt Extinguishment 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; and (ii) other charges that are non-standard, not part of the ordinary course of business, and unrelated to the insurance underwriting process. Goodwill Impairments are excluded because they are infrequent and non-recurring charges. Non-Core Operations includes the results of our Preferred Insurance business which we expect to fully exit. These results are excluded because they are irrelevant to our ongoing operations and do not qualify for Discontinued Operations under GAAP. Significant non-recurring items are excluded because, by their nature, they are not indicative of Kemper’s business or economic trends. The preceding non-GAAP financial measures should not be considered a substitute for the comparable GAAP financial measures, as they do not fully recognize the profitability of Kemper’s businesses.
A reconciliation of Net (Loss) Income attributable to Kemper Corporation to Adjusted Consolidated Net Operating Income for the three and six months ended June 30, 2026 and 2025 is presented below.
| Three Months Ended | Six Months Ended | |||||||||||||||||||||||||
| (Dollars in Millions) (Unaudited) | Jun 30, 2026 | Jun 30, 2025 | Jun 30, 2026 | Jun 30, 2025 | ||||||||||||||||||||||
Net (Loss) Income attributable to Kemper Corporation | $ | (464.8) | $ | 72.6 | $ | (466.5) | $ | 172.3 | ||||||||||||||||||
Less Net (Loss) Income From: | ||||||||||||||||||||||||||
| Change in Fair Value of Equity and Convertible Securities | (1.4) | (0.4) | (2.4) | (0.3) | ||||||||||||||||||||||
| Net Realized Investment Gains (Losses) | 0.5 | (0.1) | 0.8 | 0.6 | ||||||||||||||||||||||
| Impairment Losses | (18.8) | (2.8) | (20.1) | (2.6) | ||||||||||||||||||||||
| Acquisition and Disposition Related Transaction, Integration, Restructuring and Other Costs | (11.6) | (3.8) | (16.6) | (8.0) | ||||||||||||||||||||||
| Debt Extinguishment and Other Charges | — | — | — | 0.4 | ||||||||||||||||||||||
| Goodwill Impairment | (460.0) | — | (460.0) | — | ||||||||||||||||||||||
| Non-Core Operations | 0.2 | (4.4) | (7.0) | (8.3) | ||||||||||||||||||||||
Adjusted Consolidated Net Operating Income | $ | 26.3 | $ | 84.1 | $ | 38.8 | $ | 190.5 | ||||||||||||||||||
11
Diluted Adjusted Net Operating Income per Unrestricted Share is a non-GAAP financial measure computed by dividing Adjusted Net Operating Income by the weighted-average unrestricted shares and equivalent shares outstanding. The most directly comparable GAAP financial measure is Diluted Net (Loss) Income per Unrestricted Share.
A reconciliation of Diluted Net (Loss) Income per Unrestricted Share to Diluted Adjusted Net Operating Income per Unrestricted Share for the three and six months ended June 30, 2026 and 2025 is presented below.
| Three Months Ended | Six Months Ended | |||||||||||||||||||||||||
| (Unaudited) | Jun 30, 2026 | Jun 30, 2025 | Jun 30, 2026 | Jun 30, 2025 | ||||||||||||||||||||||
Diluted Net (Loss) Income attributable to Kemper Corporation per Unrestricted Share | $ | (7.90) | $ | 1.12 | $ | (7.93) | $ | 2.66 | ||||||||||||||||||
Less Net (Loss) Income per Unrestricted Share From: | ||||||||||||||||||||||||||
| Change in Fair Value of Equity and Convertible Securities | (0.02) | — | (0.04) | — | ||||||||||||||||||||||
| Net Realized Investment Gains | — | — | 0.01 | 0.01 | ||||||||||||||||||||||
| Impairment Losses | (0.32) | (0.04) | (0.34) | (0.04) | ||||||||||||||||||||||
| Acquisition and Disposition Related Transaction, Integration, Restructuring and Other Costs | (0.19) | (0.07) | (0.28) | (0.14) | ||||||||||||||||||||||
| Debt Extinguishment and Other Charges | — | — | — | 0.01 | ||||||||||||||||||||||
| Goodwill Impairment | (7.82) | — | (7.82) | — | ||||||||||||||||||||||
| Non-Core Operations | — | (0.07) | (0.12) | (0.13) | ||||||||||||||||||||||
Diluted Adjusted Net Operating Income per Unrestricted Share | $ | 0.45 | $ | 1.30 | $ | 0.66 | $ | 2.95 | ||||||||||||||||||
12
Return on Adjusted Shareholders' Equity is a calculation that uses a non-GAAP financial measure. It is calculated by dividing the period’s annualized Net (Loss) Income attributable to Kemper Corporation, excluding the annualization of the after-tax goodwill impairment and the credit loss allowance recognized on the Reciprocal Exchange surplus notes, by the average shareholders’ equity excluding net unrealized gains and losses on fixed maturities, the change in discount rate on future life policyholder benefits and goodwill. Return on Shareholders’ Equity is the most directly comparable GAAP measure. We use this non-GAAP measure to identify and analyze the change in performance attributable to management efforts between periods. Kemper believes this non-GAAP financial measure is useful to investors because it eliminates the effect of items that can fluctuate significantly from period to period and are generally driven by economic developments, primarily capital market conditions, the magnitude and timing of which are not influenced by management. Kemper believes it enhances understanding and comparability of performance by highlighting underlying business activity and profitability drivers.
A reconciliation of Return on Shareholders’ Equity to Return on Adjusted Shareholders’ Equity is presented below:
| Three Months Ended | Six Months Ended | |||||||||||||||||||||||||
| (Dollars in Millions) (Unaudited) | Jun 30, 2026 | Jun 30, 2025 | Jun 30, 2026 | Jun 30, 2025 | ||||||||||||||||||||||
| Numerator: | ||||||||||||||||||||||||||
Annualized Net (Loss) Income attributable to Kemper Corporation1 | $ | (429.4) | $ | 290.4 | $ | (456.4) | $ | 344.6 | ||||||||||||||||||
| Denominator: | ||||||||||||||||||||||||||
Average Shareholders' Equity2 | $ | 2,421.2 | $ | 2,935.5 | $ | 2,507.9 | $ | 2,886.5 | ||||||||||||||||||
Less: Average Net Unrealized Losses on Fixed Maturities | 616.6 | 638.6 | 599.8 | 657.9 | ||||||||||||||||||||||
Less: Average Change in Discount Rate on Future Life Policyholder Benefits | (391.9) | (368.0) | (378.2) | (372.1) | ||||||||||||||||||||||
Less: Average Goodwill | (1,017.1) | (1,250.7) | (1,094.9) | (1,250.7) | ||||||||||||||||||||||
Average Adjusted Shareholders' Equity2 | $ | 1,628.8 | $ | 1,955.4 | $ | 1,634.6 | $ | 1,921.6 | ||||||||||||||||||
Return on Shareholders' Equity: | ||||||||||||||||||||||||||
| Return on Shareholders' Equity | (17.7) | % | 9.9 | % | (18.2) | % | 11.9 | % | ||||||||||||||||||
| Return on Adjusted Shareholders' Equity | (26.4) | % | 14.9 | % | (27.9) | % | 17.9 | % | ||||||||||||||||||
1 Excludes the annualization of the $460.0 million after-tax goodwill impairment and the $16.6 million after-tax credit loss allowance ($21.0 million pre-tax) recognized on the Reciprocal Exchange surplus notes for the three and six months ended June 30, 2026. | ||||||||||||||||||||||||||
2 Average shareholders' equity and average adjusted shareholders’ equity is the simple average of the beginning and ending balances for the period. Average shareholders’ equity and average adjusted shareholders’ equity on a year-to-date basis is (a) the sum of the balance at the beginning of the year and the ending balance for each quarter within that year divided by (b) the number of quarters in the period presented plus one. | ||||||||||||||||||||||||||
Underlying Combined Ratio is a non-GAAP financial measure. It is computed by adding the Current Year Non-catastrophe Losses and LAE Ratio with the Insurance Expense Ratio. The most directly comparable GAAP financial measure is the Combined Ratio, which is computed by adding Total Incurred Losses and LAE Ratio, including the impact of catastrophe losses and loss and LAE reserve development from prior years, with the Insurance Expense Ratio.
13
Kemper believes Underlying Losses and LAE and the Underlying Combined Ratio are useful to investors and uses these financial measures to reveal the trends in Kemper’s Property & Casualty Insurance segment that may be obscured by catastrophe losses and prior-year reserve development. These catastrophe losses may cause Kemper’s loss trends to vary significantly between periods as a result of their incidence of occurrence and magnitude and can have a significant impact on incurred losses and LAE and the Combined Ratio. Prior-year reserve developments are caused by unexpected loss development on historical reserves. Because reserve development relates to the re-estimation of losses from earlier periods, it has no bearing on the performance of Kemper’s insurance products in the current period. Kemper believes it is useful for investors to evaluate these components separately and in the aggregate when reviewing Kemper’s underwriting performance.
Adjusted Book Value Per Share is a calculation that uses a non-GAAP financial measure. It is calculated by dividing shareholders’ equity after excluding the after-tax impact of net unrealized gains and losses on fixed income securities, the change in discount rate on future life policyholder benefits and goodwill by total Common Shares Issued and Outstanding. Book value per share is the most directly comparable GAAP financial measure. Kemper uses the trends in book value per share excluding the after-tax impact of net unrealized gains and losses on fixed income securities, the change in discount rate on future life policyholder benefits and goodwill in conjunction with book value per share to identify and analyze the change in net worth excluding goodwill attributable to management efforts between periods. Kemper believes the non-GAAP financial measure is useful to investors because it eliminates the effect of items that can fluctuate significantly from period to period and are generally driven by economic developments, primarily capital market conditions, the magnitude and timing of which are not influenced by management. Kemper believes it enhances understanding and comparability of performance by highlighting underlying business activity and profitability drivers.
A reconciliation of Book Value Per Share to Adjusted Book Value Per Share is presented below:
| As of | ||||||||||||||
| (Dollars and Shares in Millions Except Per Share Amounts) (Unaudited) | Jun 30, 2026 | Dec 31, 2025 | ||||||||||||
| Numerator: | ||||||||||||||
| Kemper Corporation Shareholders’ Equity | $ | 2,192.8 | $ | 2,681.4 | ||||||||||
Less: Net Unrealized Losses on Fixed Maturities | 596.5 | 566.2 | ||||||||||||
| Less: Change in Discount Rate on Future Life Policyholder Benefits | (382.7) | (350.8) | ||||||||||||
| Less: Goodwill | (783.5) | (1,250.7) | ||||||||||||
| Adjusted Shareholders’ Equity | $ | 1,623.1 | $ | 1,646.1 | ||||||||||
| Denominator: | ||||||||||||||
| Common Shares Issued and Outstanding | 58.922 | 58.667 | ||||||||||||
| Book Value Per Share: | ||||||||||||||
| Book Value Per Share | $ | 37.22 | $ | 45.71 | ||||||||||
Less: Net Unrealized Losses on Fixed Maturities | 10.13 | 9.65 | ||||||||||||
| Less: Change in Discount Rate on Future Life Policyholder Benefits | (6.50) | (5.98) | ||||||||||||
| Less: Goodwill | (13.30) | (21.32) | ||||||||||||
| Adjusted Book Value Per Share | $ | 27.55 | $ | 28.06 | ||||||||||
14
Conference Call
Kemper will host its conference call to discuss second quarter 2026 results on Thursday, August 6, at 8:00 a.m. Eastern (7:00 a.m. Central). The conference call will be accessible via the internet and by telephone at 833.461.5787, Conference ID 170600198. To listen via webcast, register online at the investor section of kemper.com at least 15 minutes prior to the webcast to download and install any necessary software. A replay of the call will be available online at the investor section of kemper.com.
More detailed financial information can be found in Kemper’s Investor Financial Supplement and Earnings Call Presentation for the second quarter of 2026, 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 $12 billion in assets, Kemper is improving the world of insurance by providing affordable and easy-to-use personalized solutions to individuals, families and businesses through its Kemper Auto and Kemper Life brands. Kemper serves over 4.4 million policies, is represented by approximately 24,100 agents and brokers, and has approximately 7,000 associates dedicated to meeting the ever-changing needs of its customers.
Learn more about Kemper at kemper.com.
Caution Regarding Forward-Looking Statements
This press release may contain or incorporate by reference information that includes or is based on forward-looking statements within the meaning of the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995. We caution investors that these forward-looking statements are not guarantees of future performance, and actual results may differ materially. Such statements involve known and unknown risks, uncertainties, and other factors, including but not limited to:
•changes in the frequency and severity of insurance claims;
•claim development and the process of estimating claim reserves;
•the impacts of inflation;
•changes in interest rate environment;
•supply chain disruption;
•product demand and pricing;
•effects of legislative, governmental and regulatory actions;
•heightened competition;
•litigation outcomes and trends;
•investment risks;
•cybersecurity risks or incidents;
•impact of catastrophes; and
•other risks and uncertainties detailed in Kemper’s Annual Report on Form 10-K and subsequent filings with the Securities and Exchange Commission.
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.
15
###
Contacts | |||||
Investors: Michael Marinaccio | 312.661.4930 or [email protected] | ||||
| Media: Barbara Ciesemier | 312.661.4521 or [email protected] | ||||
16
Investor Supplement
Second Quarter 2026
Caution Regarding Forward-Looking Statements
This Investor Supplement may contain or incorporate by reference information that includes or is based on forward-looking statements within the meaning of the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995. We caution investors that these forward-looking statements are not guarantees of future performance, and actual results may differ materially. Such statements involve known and unknown risks, uncertainties, and other factors, including but not limited to:
•changes in the frequency and severity of insurance claims;
•claim development and the process of estimating claim reserves;
•the impacts of inflation;
•changes in interest rate environment;
•supply chain disruption;
•product demand and pricing;
•effects of legislative, governmental and regulatory actions;
•heightened competition;
•litigation outcomes and trends;
•investment risks;
•cybersecurity risks or incidents;
•impact of catastrophes; and
•other risks and uncertainties detailed in Kemper’s Annual Report on Form 10-K and subsequent filings with the Securities and Exchange Commission (“SEC”).
Non-GAAP Financial Measures
This document contains non-GAAP financial measures to analyze the Company’s operating performance for the periods presented. Because the Company’s calculation of these measures may differ from similar measures used by other companies, investors should be careful when comparing the Company’s non-GAAP financial measures to those of other companies. For detailed disclosures on non-GAAP financial measures please refer to the “Definitions of Non-GAAP Financial Measures” on pages 27-30.
Kemper Corporation
Investor Supplement
Second Quarter 2026
Table of Contents
| Page | |||||
| Consolidated Financial Highlights | 3-4 | ||||
Consolidated Statements of (Loss) Income | 5 | ||||
| Consolidated Balance Sheets | 6-7 | ||||
| Consolidated Statements of Cash Flows | 8-9 | ||||
| Capital Metrics | 10 | ||||
Debt Outstanding, Federal Home Loan Bank Advances and Ratings | 11 | ||||
| Adjusted Segment Summary Results: | |||||
| Revenues | 12 | ||||
| Adjusted Operating (Loss) Income | 13 | ||||
| Adjusted Net Operating Income | 13 | ||||
| Catastrophe Frequency and Severity | 14-15 | ||||
| Specialty Property & Casualty Insurance Segment - Results of Operations and Selected Financial Information | 16-17 | ||||
| Personal Automobile Insurance | 18 | ||||
| Commercial Automobile Insurance | 19 | ||||
| Life Insurance Segment - Results of Operations and Selected Financial Information | 20-21 | ||||
| Expenses | 22 | ||||
| Details of Investment Performance | 23 | ||||
| Details of Invested Assets | 24-25 | ||||
| Investments in Limited Liability Companies and Limited Partnerships | 26 | ||||
| Definitions of Non-GAAP Financial Measures | 27-30 | ||||
Kemper Corporation Consolidated Financial Highlights (Dollars in Millions, Except Per Share Amounts) (Unaudited) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Jun 30, 2026 | Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Jun 30, 2026 | Jun 30, 2025 | ||||||||||||||||||||||||||||||||||||||||||||||
| For Period Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Earned Premiums | $ | 1,011.6 | $ | 999.3 | $ | 1,044.3 | $ | 1,133.3 | $ | 1,130.8 | $ | 1,087.9 | $ | 2,010.9 | $ | 2,218.7 | |||||||||||||||||||||||||||||||||||||
Net Investment Income | 105.4 | 107.1 | 103.1 | 104.8 | 95.9 | 101.2 | 212.5 | 197.1 | |||||||||||||||||||||||||||||||||||||||||||||
| Other Income (Loss) | 0.5 | 3.4 | (10.6) | 2.9 | 3.1 | 2.6 | 3.9 | 5.7 | |||||||||||||||||||||||||||||||||||||||||||||
Change in Fair Value of Equity and Convertible Securities | (1.7) | (1.3) | (1.8) | (2.1) | (0.5) | 0.1 | (3.0) | (0.4) | |||||||||||||||||||||||||||||||||||||||||||||
| Net Investment (Losses) Gains | (23.1) | (1.3) | (3.6) | 0.8 | (3.7) | 1.2 | (24.4) | (2.5) | |||||||||||||||||||||||||||||||||||||||||||||
| Investment and Other Income | 81.1 | 107.9 | 87.1 | 106.4 | 94.8 | 105.1 | 189.0 | 199.9 | |||||||||||||||||||||||||||||||||||||||||||||
Total Revenues | $ | 1,092.7 | $ | 1,107.2 | $ | 1,131.4 | $ | 1,239.7 | $ | 1,225.6 | $ | 1,193.0 | $ | 2,199.9 | $ | 2,418.6 | |||||||||||||||||||||||||||||||||||||
Net (Loss) Income | $ | (466.0) | $ | (4.4) | $ | (10.0) | $ | (24.2) | $ | 69.8 | $ | 97.0 | $ | (470.4) | $ | 166.8 | |||||||||||||||||||||||||||||||||||||
| Less: Net Loss attributable to Noncontrolling Interest | (1.2) | (2.7) | (2.0) | (3.2) | (2.8) | (2.7) | (3.9) | (5.5) | |||||||||||||||||||||||||||||||||||||||||||||
Net (Loss) Income attributable to Kemper Corporation | $ | (464.8) | $ | (1.7) | $ | (8.0) | $ | (21.0) | $ | 72.6 | $ | 99.7 | $ | (466.5) | $ | 172.3 | |||||||||||||||||||||||||||||||||||||
Adjusted Consolidated Net Operating Income1 | $ | 26.3 | $ | 12.5 | $ | 14.6 | $ | 20.4 | $ | 84.1 | $ | 106.4 | $ | 38.8 | $ | 190.5 | |||||||||||||||||||||||||||||||||||||
Per Unrestricted Common Share Amounts: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Basic: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Net (Loss) Income attributable to Kemper Corporation per Unrestricted Share: | $ | (7.90) | $ | (0.03) | $ | (0.13) | $ | (0.34) | $ | 1.13 | $ | 1.56 | $ | (7.93) | $ | 2.69 | |||||||||||||||||||||||||||||||||||||
Adjusted Consolidated Net Operating Income1 | $ | 0.45 | $ | 0.21 | $ | 0.25 | $ | 0.33 | $ | 1.31 | $ | 1.67 | $ | 0.66 | $ | 2.98 | |||||||||||||||||||||||||||||||||||||
Diluted: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Net (Loss) Income attributable to Kemper Corporation per Unrestricted Share: | $ | (7.90) | $ | (0.03) | $ | (0.13) | $ | (0.34) | $ | 1.12 | $ | 1.54 | $ | (7.93) | $ | 2.66 | |||||||||||||||||||||||||||||||||||||
Adjusted Consolidated Net Operating Income1 | $ | 0.45 | $ | 0.21 | $ | 0.25 | $ | 0.33 | $ | 1.30 | $ | 1.65 | $ | 0.66 | $ | 2.95 | |||||||||||||||||||||||||||||||||||||
Dividends Paid to Shareholders Per Share | $ | 0.32 | $ | 0.32 | $ | 0.32 | $ | 0.32 | $ | 0.32 | $ | 0.32 | $ | 0.64 | $ | 0.64 | |||||||||||||||||||||||||||||||||||||
| Return on Shareholders' Equity | (17.7) | % | (0.3) | % | (1.2) | % | (3.0) | % | 9.9 | % | 14.0 | % | (18.2) | % | 11.9 | % | |||||||||||||||||||||||||||||||||||||
Return on Adjusted Shareholders' Equity1 | (26.4) | % | (0.4) | % | (1.9) | % | (4.6) | % | 14.9 | % | 21.0 | % | (27.9) | % | 17.9 | % | |||||||||||||||||||||||||||||||||||||
1Non-GAAP Financial Measure. See pages 27-30 for definition. | |||||||||||||||||||||||||||||||||||||||||||||||||||||
3
Kemper Corporation Consolidated Financial Highlights (Continued) (Dollars in Millions, Except Per Share Amounts) (Unaudited) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| As of | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Jun 30, 2026 | Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | ||||||||||||||||||||||||||||||||||||||||||||||||
| At Period End | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Assets | $ | 11,926.3 | $ | 12,410.5 | $ | 12,472.7 | $ | 12,443.4 | $ | 12,601.1 | $ | 12,467.3 | |||||||||||||||||||||||||||||||||||||||||
Insurance Reserves | $ | 6,343.2 | $ | 6,238.4 | $ | 6,198.3 | $ | 6,123.6 | $ | 5,900.0 | $ | 5,867.1 | |||||||||||||||||||||||||||||||||||||||||
Debt | $ | 944.5 | $ | 944.0 | $ | 943.5 | $ | 943.1 | $ | 942.6 | $ | 942.1 | |||||||||||||||||||||||||||||||||||||||||
| Kemper Corporation Shareholders’ Equity | $ | 2,192.8 | $ | 2,649.6 | $ | 2,681.4 | $ | 2,732.1 | $ | 2,953.4 | $ | 2,917.6 | |||||||||||||||||||||||||||||||||||||||||
Book Value Per Share2 | $ | 37.22 | $ | 45.05 | $ | 45.71 | $ | 45.38 | $ | 46.45 | $ | 45.60 | |||||||||||||||||||||||||||||||||||||||||
Adjusted Book Value Per Share1,2 | $ | 27.55 | $ | 27.79 | $ | 28.06 | $ | 28.55 | $ | 31.01 | $ | 30.31 | |||||||||||||||||||||||||||||||||||||||||
Debt to Total Capitalization2 | 30.1 | % | 26.3 | % | 26.0 | % | 25.7 | % | 24.2 | % | 24.4 | % | |||||||||||||||||||||||||||||||||||||||||
1Non-GAAP Financial Measure. See pages 27-30 for definition. | |||||||||||||||||||||||||||||||||||||||||||||||||||||
2See Capital Metrics on page 10 for detail calculations. | |||||||||||||||||||||||||||||||||||||||||||||||||||||
4
Kemper Corporation
Consolidated Statements of (Loss) Income
(Dollars in Millions, Except Per Share Amounts)
(Unaudited)
| Three Months Ended | Six Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Jun 30, 2026 | Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Jun 30, 2026 | Jun 30, 2025 | ||||||||||||||||||||||||||||||||||||||||||||||
| Revenues: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Earned Premiums | $ | 1,011.6 | $ | 999.3 | $ | 1,044.3 | $ | 1,133.3 | $ | 1,130.8 | $ | 1,087.9 | $ | 2,010.9 | $ | 2,218.7 | |||||||||||||||||||||||||||||||||||||
| Net Investment Income | 105.4 | 107.1 | 103.1 | 104.8 | 95.9 | 101.2 | 212.5 | 197.1 | |||||||||||||||||||||||||||||||||||||||||||||
| Other Income (Loss) | 0.5 | 3.4 | (10.6) | 2.9 | 3.1 | 2.6 | 3.9 | 5.7 | |||||||||||||||||||||||||||||||||||||||||||||
| Change in Fair Value of Equity and Convertible Securities | (1.7) | (1.3) | (1.8) | (2.1) | (0.5) | 0.1 | (3.0) | (0.4) | |||||||||||||||||||||||||||||||||||||||||||||
| Net Realized Investment Gains (Losses) | 0.6 | 0.4 | 0.8 | 3.9 | (0.1) | 0.9 | 1.0 | 0.8 | |||||||||||||||||||||||||||||||||||||||||||||
| Impairment Losses | (23.7) | (1.7) | (4.4) | (3.1) | (3.6) | 0.3 | (25.4) | (3.3) | |||||||||||||||||||||||||||||||||||||||||||||
| Total Revenues | 1,092.7 | 1,107.2 | 1,131.4 | 1,239.7 | 1,225.6 | 1,193.0 | 2,199.9 | 2,418.6 | |||||||||||||||||||||||||||||||||||||||||||||
| Expenses: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Policyholders’ Benefits and Incurred Losses and Loss Adjustment Expenses | 818.4 | 828.8 | 854.5 | 924.6 | 829.1 | 767.3 | 1,647.2 | 1,596.4 | |||||||||||||||||||||||||||||||||||||||||||||
| Insurance and Other Expenses | 272.4 | 277.0 | 281.4 | 339.1 | 300.0 | 294.5 | 549.4 | 594.5 | |||||||||||||||||||||||||||||||||||||||||||||
| Interest Expense | 8.9 | 9.3 | 9.0 | 9.1 | 9.0 | 11.4 | 18.2 | 20.4 | |||||||||||||||||||||||||||||||||||||||||||||
| Goodwill Impairment | 460.0 | — | — | — | — | — | 460.0 | — | |||||||||||||||||||||||||||||||||||||||||||||
| Total Expenses | 1,559.7 | 1,115.1 | 1,144.9 | 1,272.8 | 1,138.1 | 1,073.2 | 2,674.8 | 2,211.3 | |||||||||||||||||||||||||||||||||||||||||||||
| (Loss) Income before Income Taxes | (467.0) | (7.9) | (13.5) | (33.1) | 87.5 | 119.8 | (474.9) | 207.3 | |||||||||||||||||||||||||||||||||||||||||||||
| Income Tax (Benefit) Expense | (1.0) | (3.5) | (3.5) | (8.9) | 17.7 | 22.8 | (4.5) | 40.5 | |||||||||||||||||||||||||||||||||||||||||||||
| Net (Loss) Income | (466.0) | (4.4) | (10.0) | (24.2) | 69.8 | 97.0 | (470.4) | 166.8 | |||||||||||||||||||||||||||||||||||||||||||||
| Less: Net Loss attributable to Noncontrolling Interest | (1.2) | (2.7) | (2.0) | (3.2) | (2.8) | (2.7) | (3.9) | (5.5) | |||||||||||||||||||||||||||||||||||||||||||||
Net (Loss) Income attributable to Kemper Corporation | $ | (464.8) | $ | (1.7) | $ | (8.0) | $ | (21.0) | $ | 72.6 | $ | 99.7 | $ | (466.5) | $ | 172.3 | |||||||||||||||||||||||||||||||||||||
Net (Loss) Income attributable to Kemper Corporation per Unrestricted Share: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Basic | $ | (7.90) | $ | (0.03) | $ | (0.13) | $ | (0.34) | $ | 1.13 | $ | 1.56 | $ | (7.93) | $ | 2.69 | |||||||||||||||||||||||||||||||||||||
| Diluted | $ | (7.90) | $ | (0.03) | $ | (0.13) | $ | (0.34) | $ | 1.12 | $ | 1.54 | $ | (7.93) | $ | 2.66 | |||||||||||||||||||||||||||||||||||||
| Dividends Paid to Shareholders Per Share | $ | 0.32 | $ | 0.32 | $ | 0.32 | $ | 0.32 | $ | 0.32 | $ | 0.32 | $ | 0.64 | $ | 0.64 | |||||||||||||||||||||||||||||||||||||
| Weighted Average Unrestricted Common Shares Outstanding (in Millions) | 58.866 | 58.743 | 58.801 | 61.477 | 63.939 | 63.887 | 58.805 | 63.913 | |||||||||||||||||||||||||||||||||||||||||||||
| Weighted-Average Unrestricted Shares and Equivalent Shares Outstanding Assuming Dilution (in Millions) | 58.866 | 58.743 | 58.801 | 61.477 | 64.600 | 64.653 | 58.805 | 64.627 | |||||||||||||||||||||||||||||||||||||||||||||
5
Kemper Corporation Consolidated Balance Sheets (Dollars in Millions) (Unaudited) | ||||||||||||||||||||||||||||||||||||||
| Jun 30, 2026 | Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | |||||||||||||||||||||||||||||||||
| Assets: | ||||||||||||||||||||||||||||||||||||||
| Investments: | ||||||||||||||||||||||||||||||||||||||
| Fixed Maturities at Fair Value | $ | 6,721.1 | $ | 6,672.2 | $ | 6,743.3 | $ | 6,620.3 | $ | 6,669.1 | $ | 6,558.6 | ||||||||||||||||||||||||||
| Equity Securities at Fair Value | 309.6 | 308.4 | 306.4 | 302.0 | 284.1 | 232.3 | ||||||||||||||||||||||||||||||||
| Equity Method Limited Liability Investments | 183.0 | 176.1 | 176.0 | 174.9 | 176.2 | 185.1 | ||||||||||||||||||||||||||||||||
| Short-term Investments at Cost which Approximates Fair Value | 271.4 | 296.6 | 313.5 | 371.2 | 407.6 | 545.3 | ||||||||||||||||||||||||||||||||
Company-Owned Life Insurance | 598.2 | 586.2 | 579.2 | 567.9 | 557.1 | 546.5 | ||||||||||||||||||||||||||||||||
Loans to Policyholders | 279.4 | 279.6 | 279.9 | 279.3 | 278.6 | 279.8 | ||||||||||||||||||||||||||||||||
| Other Investments | 282.7 | 283.9 | 271.3 | 287.0 | 272.8 | 244.5 | ||||||||||||||||||||||||||||||||
| Total Investments | 8,645.4 | 8,603.0 | 8,669.6 | 8,602.6 | 8,645.5 | 8,592.1 | ||||||||||||||||||||||||||||||||
| Cash | 80.3 | 92.1 | 124.3 | 107.4 | 175.5 | 115.4 | ||||||||||||||||||||||||||||||||
| Receivables from Policyholders | 966.3 | 997.1 | 965.2 | 1,022.9 | 1,038.7 | 1,052.7 | ||||||||||||||||||||||||||||||||
| Other Receivables | 181.8 | 185.3 | 184.7 | 185.0 | 192.9 | 189.2 | ||||||||||||||||||||||||||||||||
| Deferred Policy Acquisition Costs | 675.0 | 669.6 | 655.4 | 658.9 | 658.2 | 649.7 | ||||||||||||||||||||||||||||||||
| Goodwill | 783.5 | 1,250.7 | 1,250.7 | 1,250.7 | 1,250.7 | 1,250.7 | ||||||||||||||||||||||||||||||||
| Current Income Tax Assets | 48.7 | 40.2 | 40.7 | 57.4 | 57.5 | 40.9 | ||||||||||||||||||||||||||||||||
| Deferred Income Tax Assets | 97.2 | 95.2 | 96.9 | 66.3 | 67.6 | 73.4 | ||||||||||||||||||||||||||||||||
| Other Assets | 381.5 | 406.2 | 410.7 | 422.2 | 448.5 | 442.2 | ||||||||||||||||||||||||||||||||
| Assets of Consolidated Variable Interest Entity: | ||||||||||||||||||||||||||||||||||||||
| Fixed Maturities at Fair Value | 44.7 | 47.2 | 42.1 | 36.3 | 33.3 | 13.7 | ||||||||||||||||||||||||||||||||
| Short-term Investments at Cost which Approximates Fair Value | 9.4 | 9.2 | 14.4 | 17.5 | 14.9 | 31.6 | ||||||||||||||||||||||||||||||||
| Cash | 0.9 | 0.5 | 1.7 | — | 1.5 | — | ||||||||||||||||||||||||||||||||
| Receivables from Policyholders | 6.2 | 7.7 | 10.4 | 10.7 | 11.6 | 11.9 | ||||||||||||||||||||||||||||||||
| Other Receivables | 0.5 | 0.5 | 0.4 | 0.4 | 0.2 | 0.1 | ||||||||||||||||||||||||||||||||
| Deferred Policy Acquisition Costs | 0.8 | 1.0 | 1.3 | 1.4 | 1.6 | 1.5 | ||||||||||||||||||||||||||||||||
| Deferred Income Tax Assets | 4.1 | 5.0 | 4.2 | 3.7 | 2.9 | 2.2 | ||||||||||||||||||||||||||||||||
| Total Assets | $ | 11,926.3 | $ | 12,410.5 | $ | 12,472.7 | $ | 12,443.4 | $ | 12,601.1 | $ | 12,467.3 | ||||||||||||||||||||||||||
6
Kemper Corporation Consolidated Balance Sheets (Dollars in Millions) (Unaudited) | ||||||||||||||||||||||||||||||||||||||
| Jun 30, 2026 | Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | |||||||||||||||||||||||||||||||||
| Liabilities and Shareholders’ Equity: | ||||||||||||||||||||||||||||||||||||||
| Insurance Reserves: | ||||||||||||||||||||||||||||||||||||||
| Life and Health | $ | 3,278.1 | $ | 3,238.9 | $ | 3,287.5 | $ | 3,317.6 | $ | 3,235.3 | $ | 3,229.5 | ||||||||||||||||||||||||||
| Property and Casualty | 3,065.1 | 2,999.5 | 2,910.8 | 2,806.0 | 2,664.7 | 2,637.6 | ||||||||||||||||||||||||||||||||
| Total Insurance Reserves | 6,343.2 | 6,238.4 | 6,198.3 | 6,123.6 | 5,900.0 | 5,867.1 | ||||||||||||||||||||||||||||||||
| Unearned Premiums | 1,227.5 | 1,274.1 | 1,233.1 | 1,310.6 | 1,345.0 | 1,361.6 | ||||||||||||||||||||||||||||||||
| Policyholder Obligations | 541.1 | 568.2 | 608.0 | 620.0 | 641.3 | 632.0 | ||||||||||||||||||||||||||||||||
| Deferred Income Tax Liabilities | — | 4.3 | 14.8 | 13.5 | 14.7 | 6.6 | ||||||||||||||||||||||||||||||||
| Accrued Expenses and Other Liabilities | 651.7 | 702.4 | 762.6 | 669.5 | 775.4 | 715.5 | ||||||||||||||||||||||||||||||||
| Long-term Debt, Non-Current, at Amortized Cost | 944.5 | 944.0 | 943.5 | 943.1 | 942.6 | 942.1 | ||||||||||||||||||||||||||||||||
| Liabilities of Consolidated Variable Interest Entity: | ||||||||||||||||||||||||||||||||||||||
| Insurance Reserves | 31.1 | 31.8 | 29.4 | 26.3 | 20.9 | 14.7 | ||||||||||||||||||||||||||||||||
| Unearned Premiums | 7.4 | 9.9 | 12.1 | 13.6 | 14.5 | 14.5 | ||||||||||||||||||||||||||||||||
| Accrued Expenses and Other Liabilities | 2.5 | 2.3 | 1.5 | 1.6 | 1.2 | 1.7 | ||||||||||||||||||||||||||||||||
| Total Liabilities | 9,749.0 | 9,775.4 | 9,803.3 | 9,721.8 | 9,655.6 | 9,555.8 | ||||||||||||||||||||||||||||||||
| Kemper Corporation Shareholders’ Equity: | ||||||||||||||||||||||||||||||||||||||
| Common Stock | 5.9 | 5.9 | 5.9 | 6.0 | 6.4 | 6.4 | ||||||||||||||||||||||||||||||||
| Paid-in Capital | 1,738.5 | 1,732.6 | 1,723.9 | 1,737.2 | 1,859.3 | 1,863.6 | ||||||||||||||||||||||||||||||||
| Retained Earnings | 653.7 | 1,137.8 | 1,157.8 | 1,216.0 | 1,345.4 | 1,308.9 | ||||||||||||||||||||||||||||||||
| Accumulated Other Comprehensive Loss | (205.3) | (226.7) | (206.2) | (227.1) | (257.7) | (261.3) | ||||||||||||||||||||||||||||||||
| Total Kemper Corporation Shareholders’ Equity | 2,192.8 | 2,649.6 | 2,681.4 | 2,732.1 | 2,953.4 | 2,917.6 | ||||||||||||||||||||||||||||||||
| Noncontrolling Interest | (15.5) | (14.5) | (12.0) | (10.5) | (7.9) | (6.1) | ||||||||||||||||||||||||||||||||
| Total Shareholders’ Equity | 2,177.3 | 2,635.1 | 2,669.4 | 2,721.6 | 2,945.5 | 2,911.5 | ||||||||||||||||||||||||||||||||
| Total Liabilities and Shareholders’ Equity | $ | 11,926.3 | $ | 12,410.5 | $ | 12,472.7 | $ | 12,443.4 | $ | 12,601.1 | $ | 12,467.3 | ||||||||||||||||||||||||||
7
Kemper Corporation Consolidated Statements of Cash Flows (Dollars in Millions) (Unaudited) | |||||||||||
| Six Months Ended | |||||||||||
| Jun 30, 2026 | Jun 30, 2025 | ||||||||||
| Cash Flows from Operating Activities: | |||||||||||
Net (Loss) Income | $ | (470.4) | $ | 166.8 | |||||||
| Adjustments to Reconcile Net (Loss) Income to Net Cash Provided by Operating Activities: | |||||||||||
| Net Realized Investment Gains | (1.0) | (0.8) | |||||||||
| Impairment Losses | 25.4 | 3.3 | |||||||||
| Depreciation, Amortization and Impairments of Long-Lived Assets | 23.2 | 25.5 | |||||||||
| Change in Accumulated Undistributed Earnings of Equity Method Limited Liability Investments | (6.7) | 6.0 | |||||||||
Change in Value of Equity and Convertible Securities | 3.0 | 0.4 | |||||||||
| Goodwill Impairment | 460.0 | — | |||||||||
| Changes in: | |||||||||||
| Receivables from Policyholders | 3.0 | (64.2) | |||||||||
| Reinsurance Recoverables | 2.4 | 1.8 | |||||||||
| Deferred Policy Acquisition Costs | (19.1) | (29.8) | |||||||||
| Insurance Reserves | 189.1 | 87.3 | |||||||||
| Unearned Premiums | (10.3) | 84.2 | |||||||||
| Income Taxes | (23.2) | 18.4 | |||||||||
Other | (56.1) | (29.3) | |||||||||
| Net Cash Provided by Operating Activities | 119.3 | 269.6 | |||||||||
8
Kemper Corporation Consolidated Statements of Cash Flows (Dollars in Millions) (Unaudited) | |||||||||||
| Six Months Ended | |||||||||||
| Jun 30, 2026 | Jun 30, 2025 | ||||||||||
| Net Cash Provided by Operating Activities (Carryforward from page 8) | 119.3 | 269.6 | |||||||||
| Cash Flows from Investing Activities: | |||||||||||
| Proceeds from the Sales, Calls and Maturities of Fixed Maturities | 582.8 | 525.4 | |||||||||
| Proceeds from the Sales or Paydowns of Investments: | |||||||||||
| Equity Securities | 20.7 | 12.0 | |||||||||
| Real Estate Investments | 0.1 | — | |||||||||
| Mortgage Loans | 78.2 | 53.5 | |||||||||
| Other Investments | 10.9 | 12.6 | |||||||||
| Purchases of Investments: | |||||||||||
| Fixed Maturities | (643.0) | (668.8) | |||||||||
| Equity Securities | (24.0) | (77.4) | |||||||||
| Real Estate Investments | (1.5) | (1.0) | |||||||||
| Company-Owned Life Insurance | (1.6) | — | |||||||||
| Mortgage Loans | (83.6) | (108.3) | |||||||||
| Other Investments | (34.9) | (28.1) | |||||||||
| Net Sales of Short-term Investments | 47.9 | 650.6 | |||||||||
| Acquisition of Software and Long-lived Assets | (22.3) | (15.3) | |||||||||
| Settlement Proceeds from Company-Owned Life Insurance | 6.3 | 2.9 | |||||||||
| Other | 4.3 | 3.3 | |||||||||
| Net Cash (Used in) Provided by Investing Activities | (59.7) | 361.4 | |||||||||
Cash Flows from Financing Activities: | |||||||||||
| Repayment of Long-term Debt | — | (450.0) | |||||||||
| Proceeds from Policyholder Contract Obligations | — | 30.0 | |||||||||
| Repayment of Policyholder Contract Obligations | (68.1) | (26.7) | |||||||||
| Proceeds from Shares Issued under Employee Stock Purchase Plan | 1.6 | 1.8 | |||||||||
| Common Stock Repurchases | — | (32.5) | |||||||||
| Dividends Paid | (37.6) | (41.0) | |||||||||
| Other | (0.3) | (1.0) | |||||||||
| Net Cash Used in Financing Activities | (104.4) | (519.4) | |||||||||
Net (decrease) increase in cash1 | (44.8) | 111.6 | |||||||||
Cash, Beginning of Year1 | 126.0 | 65.4 | |||||||||
Cash, End of Period1 | $ | 81.2 | $ | 177.0 | |||||||
1Includes amounts attributable to Kemper Reciprocal reported as noncontrolling interest. | |||||||||||
9
Kemper Corporation Capital Metrics (Dollars and Shares in Millions, Except Per Share Amounts) (Unaudited) | ||||||||||||||||||||||||||||||||||||||
| Jun 30, 2026 | Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | |||||||||||||||||||||||||||||||||
| Book Value Per Share | ||||||||||||||||||||||||||||||||||||||
| Book Value Per Share | $ | 37.22 | $ | 45.05 | $ | 45.71 | $ | 45.38 | $ | 46.45 | $ | 45.60 | ||||||||||||||||||||||||||
Adjusted Book Value Per Share1 | $ | 27.55 | $ | 27.79 | $ | 28.06 | $ | 28.55 | $ | 31.01 | $ | 30.31 | ||||||||||||||||||||||||||
| Debt and Total Capitalization | ||||||||||||||||||||||||||||||||||||||
| Debt | $ | 944.5 | $ | 944.0 | $ | 943.5 | $ | 943.1 | $ | 942.6 | $ | 942.1 | ||||||||||||||||||||||||||
| Kemper Corporation Shareholders’ Equity | 2,192.8 | 2,649.6 | 2,681.4 | 2,732.1 | 2,953.4 | 2,917.6 | ||||||||||||||||||||||||||||||||
| Total Capitalization | $ | 3,137.3 | $ | 3,593.6 | $ | 3,624.9 | $ | 3,675.2 | $ | 3,896.0 | $ | 3,859.7 | ||||||||||||||||||||||||||
| Ratio of Debt to Kemper Corporation Shareholders’ Equity | 43.1 | % | 35.6 | % | 35.2 | % | 34.5 | % | 31.9 | % | 32.3 | % | ||||||||||||||||||||||||||
| Ratio of Debt to Total Capitalization | 30.1 | % | 26.3 | % | 26.0 | % | 25.7 | % | 24.2 | % | 24.4 | % | ||||||||||||||||||||||||||
| Debt | $ | 944.5 | $ | 944.0 | $ | 943.5 | $ | 943.1 | $ | 942.6 | $ | 942.1 | ||||||||||||||||||||||||||
| Kemper Corporation Shareholders’ Equity | $ | 2,192.8 | $ | 2,649.6 | $ | 2,681.4 | $ | 2,732.1 | $ | 2,953.4 | $ | 2,917.6 | ||||||||||||||||||||||||||
Less: Accumulated Other Comprehensive Loss | (205.3) | (226.7) | (206.2) | (227.1) | (257.7) | (261.3) | ||||||||||||||||||||||||||||||||
Kemper Corporation Shareholders’ Equity Excluding Accumulated Other Comprehensive Loss | $ | 2,398.1 | $ | 2,876.3 | $ | 2,887.6 | $ | 2,959.2 | $ | 3,211.1 | $ | 3,178.9 | ||||||||||||||||||||||||||
Total Capitalization Excluding Accumulated Other Comprehensive Loss | $ | 3,342.6 | $ | 3,820.3 | $ | 3,831.1 | $ | 3,902.3 | $ | 4,153.7 | $ | 4,121.0 | ||||||||||||||||||||||||||
Ratio of Debt to Kemper Corporation Shareholders’ Equity Excluding Accumulated Other Comprehensive Loss | 39.4 | % | 32.8 | % | 32.7 | % | 31.9 | % | 29.4 | % | 29.6 | % | ||||||||||||||||||||||||||
Ratio of Debt to Total Capitalization Excluding Accumulated Other Comprehensive Loss | 28.3 | % | 24.7 | % | 24.6 | % | 24.2 | % | 22.7 | % | 22.9 | % | ||||||||||||||||||||||||||
Parent Company Liquidity2 | ||||||||||||||||||||||||||||||||||||||
Kemper Holding Company Cash and Investments3 | $ | 130.0 | $ | 80.2 | $ | 145.4 | $ | 156.8 | $ | 223.2 | $ | 161.3 | ||||||||||||||||||||||||||
| Borrowings Available Under Credit Agreement | 350.0 | 600.0 | 600.0 | 600.0 | 600.0 | 600.0 | ||||||||||||||||||||||||||||||||
| Parent Company Liquidity | $ | 480.0 | $ | 680.2 | $ | 745.4 | $ | 756.8 | $ | 823.2 | $ | 761.3 | ||||||||||||||||||||||||||
| Capital Returned to Shareholders | ||||||||||||||||||||||||||||||||||||||
Cash Dividends Paid4 | $ | 19.3 | $ | 18.3 | $ | 18.9 | $ | 19.7 | $ | 20.8 | $ | 20.2 | ||||||||||||||||||||||||||
1Non-GAAP Financial Measure. See pages 27-30 for definition. | ||||||||||||||||||||||||||||||||||||||
2Excludes borrowings available from subsidiaries | ||||||||||||||||||||||||||||||||||||||
3Includes Kemper's direct non-insurance subsidiaries | ||||||||||||||||||||||||||||||||||||||
4Three Months Ended | ||||||||||||||||||||||||||||||||||||||
10
Kemper Corporation
Debt Outstanding, Federal Home Loan Bank Advances and Ratings
(Dollars in Millions)
(Unaudited)
| Jun 30, 2026 | Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | |||||||||||||||||||||||||||||||||
| Kemper Corporation: | ||||||||||||||||||||||||||||||||||||||
| Non-Current: | ||||||||||||||||||||||||||||||||||||||
| 2.400% Senior Notes due September 30, 2030 | $ | 398.1 | $ | 398.0 | $ | 397.9 | $ | 397.8 | $ | 397.7 | $ | 397.6 | ||||||||||||||||||||||||||
| 3.800% Senior Notes due February 23, 2032 | 397.2 | 397.1 | 396.9 | 396.8 | 396.7 | 396.6 | ||||||||||||||||||||||||||||||||
| 5.875% Fixed-Rate Reset Junior Subordinated Debentures Due 2062 | 149.2 | 148.9 | 148.7 | 148.5 | 148.2 | 147.9 | ||||||||||||||||||||||||||||||||
| Long-term Debt Outstanding at Amortized Cost | $ | 944.5 | $ | 944.0 | $ | 943.5 | $ | 943.1 | $ | 942.6 | $ | 942.1 | ||||||||||||||||||||||||||
| Federal Home Loan Bank Advances to Insurance Subsidiaries: | ||||||||||||||||||||||||||||||||||||||
| Reported as Policyholder Contract Liabilities: | ||||||||||||||||||||||||||||||||||||||
| Federal Home Loan Bank of Chicago | $ | 448.4 | $ | 475.0 | $ | 513.8 | $ | 525.2 | $ | 546.2 | $ | 536.2 | ||||||||||||||||||||||||||
| A.M. Best | Moody’s | S&P | Fitch | |||||||||||||||||||||||||||||||||||
| As of Date of Financial Supplement | ||||||||||||||||||||||||||||||||||||||
| Kemper Debt Ratings: | ||||||||||||||||||||||||||||||||||||||
| Senior Unsecured Debt | bbb- | Baa3 | BBB- | BBB- | ||||||||||||||||||||||||||||||||||
| Junior Unsecured Debt | bb | Ba1 | BB | BB | ||||||||||||||||||||||||||||||||||
| Insurance Company Financial Strength Ratings: | ||||||||||||||||||||||||||||||||||||||
| Trinity Universal Insurance Company | A- | A3 | A- | A- | ||||||||||||||||||||||||||||||||||
| United Insurance Company of America | A- | A3 | A- | A- | ||||||||||||||||||||||||||||||||||
11
Kemper Corporation
Segment Revenues
(Dollars in Millions)
(Unaudited)
| Three Months Ended | Six Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||
| Jun 30, 2026 | Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Jun 30, 2026 | Jun 30, 2025 | |||||||||||||||||||||||||||||||||||||||||||
| Revenues: | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Specialty Property & Casualty Insurance: | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Earned Premiums: | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Personal Automobile | $ | 647.4 | $ | 647.0 | $ | 696.8 | $ | 785.1 | $ | 789.3 | $ | 753.7 | $ | 1,294.4 | $ | 1,543.0 | ||||||||||||||||||||||||||||||||||
| Commercial Automobile | 249.2 | 238.2 | 238.6 | 232.2 | 221.5 | 208.5 | 487.4 | 430.0 | ||||||||||||||||||||||||||||||||||||||||||
| Total Specialty Property & Casualty Insurance Earned Premiums | 896.6 | 885.2 | 935.4 | 1,017.3 | 1,010.8 | 962.2 | 1,781.8 | 1,973.0 | ||||||||||||||||||||||||||||||||||||||||||
| Net Investment Income | 53.7 | 55.3 | 57.3 | 53.8 | 49.6 | 50.5 | 109.0 | 100.1 | ||||||||||||||||||||||||||||||||||||||||||
| Other Income | 1.3 | 2.7 | 2.4 | 2.5 | 2.7 | 1.3 | 4.0 | 4.0 | ||||||||||||||||||||||||||||||||||||||||||
| Total Specialty Property & Casualty Insurance Revenues | 951.6 | 943.2 | 995.1 | 1,073.6 | 1,063.1 | 1,014.0 | 1,894.8 | 2,077.1 | ||||||||||||||||||||||||||||||||||||||||||
| Life Insurance: | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Earned Premiums | 102.7 | 100.8 | 93.4 | 99.8 | 100.5 | 99.7 | 203.5 | 200.2 | ||||||||||||||||||||||||||||||||||||||||||
| Net Investment Income | 49.3 | 48.7 | 47.1 | 48.0 | 44.7 | 48.4 | 98.0 | 93.1 | ||||||||||||||||||||||||||||||||||||||||||
| Other Income | 0.4 | 0.3 | 0.2 | 0.4 | 0.3 | 0.7 | 0.7 | 1.0 | ||||||||||||||||||||||||||||||||||||||||||
| Total Life Insurance Revenues | 152.4 | 149.8 | 140.7 | 148.2 | 145.5 | 148.8 | 302.2 | 294.3 | ||||||||||||||||||||||||||||||||||||||||||
| Total Segment Revenues | 1,104.0 | 1,093.0 | 1,135.8 | 1,221.8 | 1,208.6 | 1,162.8 | 2,197.0 | 2,371.4 | ||||||||||||||||||||||||||||||||||||||||||
Change in Fair Value of Equity and Convertible Securities | (1.7) | (1.3) | (1.8) | (2.1) | (0.5) | 0.1 | (3.0) | (0.4) | ||||||||||||||||||||||||||||||||||||||||||
Non-Core Operations | 14.4 | 15.4 | 17.5 | 18.2 | 21.3 | 27.9 | 29.8 | 49.2 | ||||||||||||||||||||||||||||||||||||||||||
| Net Realized Investment Gains (Losses), Impairment Losses, and Other | (24.0) | 0.1 | (20.1) | 1.8 | (3.8) | 2.2 | (23.9) | (1.6) | ||||||||||||||||||||||||||||||||||||||||||
| Total Revenues | $ | 1,092.7 | $ | 1,107.2 | $ | 1,131.4 | $ | 1,239.7 | $ | 1,225.6 | $ | 1,193.0 | $ | 2,199.9 | $ | 2,418.6 | ||||||||||||||||||||||||||||||||||
12
Kemper Corporation
Segment Adjusted Operating Results
(Dollars in Millions)
(Unaudited)
| Three Months Ended | Six Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||
| Jun 30, 2026 | Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Jun 30, 2026 | Jun 30, 2025 | |||||||||||||||||||||||||||||||||||||||||||
Segment Adjusted Operating Income (Loss): | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Specialty Property & Casualty Insurance | $ | 19.3 | $ | (0.7) | $ | 3.1 | $ | 7.9 | $ | 98.9 | $ | 122.1 | $ | 18.6 | $ | 221.0 | ||||||||||||||||||||||||||||||||||
| Life Insurance | 21.6 | 21.2 | 23.5 | 22.1 | 14.3 | 20.2 | 42.8 | 34.5 | ||||||||||||||||||||||||||||||||||||||||||
Total Segment Adjusted Operating Income | 40.9 | 20.5 | 26.6 | 30.0 | 113.2 | 142.3 | 61.4 | 255.5 | ||||||||||||||||||||||||||||||||||||||||||
| Corporate and Other Adjusted Operating Loss | (11.6) | (10.3) | (12.5) | (12.3) | (11.3) | (14.1) | (21.9) | (25.4) | ||||||||||||||||||||||||||||||||||||||||||
| Less: Loss before Income Taxes attributable to Noncontrolling Interest | (0.2) | (3.4) | (2.6) | (4.1) | (3.4) | (3.5) | (3.6) | (6.9) | ||||||||||||||||||||||||||||||||||||||||||
| Adjusted Consolidated Operating Income | 29.5 | 13.6 | 16.7 | 21.8 | 105.3 | 131.7 | 43.1 | 237.0 | ||||||||||||||||||||||||||||||||||||||||||
| (Loss) Income From: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Change in Fair Value of Equity and Convertible Securities | (1.7) | (1.3) | (1.8) | (2.1) | (0.5) | 0.1 | (3.0) | (0.4) | ||||||||||||||||||||||||||||||||||||||||||
| Net Realized Investment Gains (Losses) | 0.6 | 0.4 | 0.8 | 3.9 | (0.1) | 0.9 | 1.0 | 0.8 | ||||||||||||||||||||||||||||||||||||||||||
| Impairment Losses | (23.7) | (1.7) | (4.4) | (3.1) | (3.6) | 0.3 | (25.4) | (3.3) | ||||||||||||||||||||||||||||||||||||||||||
| Acquisition and Disposition Related Transaction, Integration, Restructuring and Other Costs | (11.8) | (6.3) | (18.3) | (22.9) | (4.8) | (5.3) | (18.1) | (10.1) | ||||||||||||||||||||||||||||||||||||||||||
Debt Extinguishment and Other Charges | — | — | — | — | — | 0.5 | — | 0.5 | ||||||||||||||||||||||||||||||||||||||||||
| Goodwill Impairment | (460.0) | — | — | — | — | — | (460.0) | — | ||||||||||||||||||||||||||||||||||||||||||
Non-Core Operations | 0.3 | (9.2) | (3.9) | (26.6) | (5.4) | (4.9) | (8.9) | (10.3) | ||||||||||||||||||||||||||||||||||||||||||
(Loss) Income before Income Taxes attributable to Kemper Corporation | $ | (466.8) | $ | (4.5) | $ | (10.9) | $ | (29.0) | $ | 90.9 | $ | 123.3 | $ | (471.3) | $ | 214.2 | ||||||||||||||||||||||||||||||||||
| Segment Adjusted Net Operating Income: | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Specialty Property & Casualty Insurance | $ | 15.8 | $ | 0.1 | $ | 2.6 | $ | 7.6 | $ | 79.0 | $ | 97.9 | $ | 15.9 | $ | 176.9 | ||||||||||||||||||||||||||||||||||
| Life Insurance | 18.3 | 18.0 | 20.1 | 18.6 | 12.6 | 17.2 | 36.3 | 29.8 | ||||||||||||||||||||||||||||||||||||||||||
| Total Segment Adjusted Net Operating Income | 34.1 | 18.1 | 22.7 | 26.2 | 91.6 | 115.1 | 52.2 | 206.7 | ||||||||||||||||||||||||||||||||||||||||||
| Corporate and Other Adjusted Net Operating Loss | (9.0) | (8.3) | (10.1) | (9.0) | (10.3) | (11.4) | (17.3) | (21.7) | ||||||||||||||||||||||||||||||||||||||||||
| Less: Net Loss attributable to Noncontrolling Interest | (1.2) | (2.7) | (2.0) | (3.2) | (2.8) | (2.7) | (3.9) | (5.5) | ||||||||||||||||||||||||||||||||||||||||||
Adjusted Consolidated Net Operating Income1 | 26.3 | 12.5 | 14.6 | 20.4 | 84.1 | 106.4 | 38.8 | 190.5 | ||||||||||||||||||||||||||||||||||||||||||
| Net (Loss) Income From: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Change in Fair Value of Equity and Convertible Securities | (1.4) | (1.0) | (1.4) | (1.7) | (0.4) | 0.1 | (2.4) | (0.3) | ||||||||||||||||||||||||||||||||||||||||||
| Net Realized Investment Gains (Losses) | 0.5 | 0.3 | 0.6 | 3.1 | (0.1) | 0.7 | 0.8 | 0.6 | ||||||||||||||||||||||||||||||||||||||||||
| Impairment Losses | (18.8) | (1.3) | (3.4) | (2.5) | (2.8) | 0.2 | (20.1) | (2.6) | ||||||||||||||||||||||||||||||||||||||||||
| Acquisition and Disposition Related Transaction, Integration, Restructuring and Other Costs | (11.6) | (5.0) | (15.5) | (19.6) | (3.8) | (4.2) | (16.6) | (8.0) | ||||||||||||||||||||||||||||||||||||||||||
Debt Extinguishment and Other Charges | — | — | — | — | — | 0.4 | — | 0.4 | ||||||||||||||||||||||||||||||||||||||||||
| Goodwill Impairment | (460.0) | — | — | — | — | — | (460.0) | — | ||||||||||||||||||||||||||||||||||||||||||
Non-Core Operations | 0.2 | (7.2) | (2.9) | (20.7) | (4.4) | (3.9) | (7.0) | (8.3) | ||||||||||||||||||||||||||||||||||||||||||
Net (Loss) Income attributable to Kemper Corporation | $ | (464.8) | $ | (1.7) | $ | (8.0) | $ | (21.0) | $ | 72.6 | $ | 99.7 | $ | (466.5) | $ | 172.3 | ||||||||||||||||||||||||||||||||||
1Non-GAAP Financial Measure. See pages 27-30 for definition. | ||||||||||||||||||||||||||||||||||||||||||||||||||
13
Kemper Corporation
Catastrophe Frequency and Severity
(Dollars in Millions)
(Unaudited)
| Three Months Ended June 30, 2026 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Specialty Property & Casualty Insurance Segment | Life Insurance Segment | Non-Core Operations | Consolidated | |||||||||||||||||||||||||||||||||||||||||||||||
| Number of Events | Losses and LAE | Number of Events | Losses and LAE | Number of Events | Losses and LAE | Number of Events | Losses and LAE | |||||||||||||||||||||||||||||||||||||||||||
Range of Losses and LAE Per Event1: | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Below $5 | 29 | $ | 6.1 | 19 | $ | 0.3 | 13 | $ | (0.1) | 33 | $ | 1.3 | ||||||||||||||||||||||||||||||||||||||
| $5 - $10 | — | — | — | — | — | — | 1 | 5.0 | ||||||||||||||||||||||||||||||||||||||||||
| $10 - $15 | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
| $15 - $20 | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
| $20 - $25 | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
| Greater Than $25 | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
| Total | 29 | $ | 6.1 | 19 | $ | 0.3 | 13 | $ | (0.1) | 34 | $ | 6.3 | ||||||||||||||||||||||||||||||||||||||
| Three Months Ended June 30, 2025 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Specialty Property & Casualty Insurance Segment | Life Insurance Segment | Non-Core Operations | Consolidated | |||||||||||||||||||||||||||||||||||||||||||||||
| Number of Events | Losses and LAE | Number of Events | Losses and LAE | Number of Events | Losses and LAE | Number of Events | Losses and LAE | |||||||||||||||||||||||||||||||||||||||||||
Range of Losses and LAE Per Event1: | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Below $5 | 18 | $ | 5.3 | 15 | $ | 0.7 | 14 | $ | 1.7 | 19 | $ | 7.7 | ||||||||||||||||||||||||||||||||||||||
| $5 - $10 | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
| $10 - $15 | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
| $15 - $20 | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
| $20 - $25 | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
| Greater Than $25 | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
| Total | 18 | $ | 5.3 | 15 | $ | 0.7 | 14 | $ | 1.7 | 19 | $ | 7.7 | ||||||||||||||||||||||||||||||||||||||
1Current accident year net incurred catastrophe Losses and LAE only. | ||||||||||||||||||||||||||||||||||||||||||||||||||
14
Kemper Corporation
Catastrophe Frequency and Severity (continued)
(Dollars in Millions)
(Unaudited)
| Six Months Ended June 30, 2026 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Specialty Property & Casualty Insurance Segment | Life Insurance Segment | Non-Core Operations | Consolidated | |||||||||||||||||||||||||||||||||||||||||||||||
| Number of Events | Losses and LAE | Number of Events | Losses and LAE | Number of Events | Losses and LAE | Number of Events | Losses and LAE | |||||||||||||||||||||||||||||||||||||||||||
Range of Losses and LAE Per Event1: | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Below $5 | 29 | $ | 7.4 | 19 | $ | 0.4 | 13 | $ | 2.3 | 33 | $ | 5.1 | ||||||||||||||||||||||||||||||||||||||
| $5 - $10 | — | — | — | — | — | — | 1 | 5.0 | ||||||||||||||||||||||||||||||||||||||||||
| $10 - $15 | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
| $15 - $20 | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
| $20 - $25 | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
| Greater Than $25 | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
| Total | 29 | $ | 7.4 | 19 | $ | 0.4 | 13 | $ | 2.3 | 34 | $ | 10.1 | ||||||||||||||||||||||||||||||||||||||
| Six Months Ended June 30, 2025 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Specialty Property & Casualty Insurance Segment | Life Insurance Segment | Non-Core Operations | Consolidated | |||||||||||||||||||||||||||||||||||||||||||||||
| Number of Events | Losses and LAE | Number of Events | Losses and LAE | Number of Events | Losses and LAE | Number of Events | Losses and LAE | |||||||||||||||||||||||||||||||||||||||||||
Range of Losses and LAE Per Event1: | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Below $5 | 33 | $ | 9.1 | 26 | $ | 1.0 | 25 | $ | 4.7 | 34 | $ | 14.8 | ||||||||||||||||||||||||||||||||||||||
| $5 - $10 | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
| $10 - $15 | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
| $15 - $20 | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
| $20 - $25 | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
| Greater Than $25 | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
| Total | 33 | $ | 9.1 | 26 | $ | 1.0 | 25 | $ | 4.7 | 34 | $ | 14.8 | ||||||||||||||||||||||||||||||||||||||
1Current accident year net incurred catastrophe Losses and LAE only. | ||||||||||||||||||||||||||||||||||||||||||||||||||
15
Kemper Corporation
Specialty Property & Casualty Insurance Segment
Results of Operations and Selected Financial Information
(Dollars in Millions)
(Unaudited)
| Three Months Ended | Six Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||
| Jun 30, 2026 | Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Jun 30, 2026 | Jun 30, 2025 | |||||||||||||||||||||||||||||||||||||||||||
| Results of Operations | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Net Premiums Written | $ | 854.7 | $ | 925.0 | $ | 860.3 | $ | 982.2 | $ | 1,001.5 | $ | 1,068.8 | $ | 1,779.7 | $ | 2,070.3 | ||||||||||||||||||||||||||||||||||
| Total Specialty P&C: | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Personal Automobile | $ | 647.4 | $ | 647.0 | $ | 696.8 | $ | 785.1 | $ | 789.3 | $ | 753.7 | $ | 1,294.4 | $ | 1,543.0 | ||||||||||||||||||||||||||||||||||
| Commercial Automobile | 249.2 | 238.2 | 238.6 | 232.2 | 221.5 | 208.5 | 487.4 | 430.0 | ||||||||||||||||||||||||||||||||||||||||||
| Earned Premiums | 896.6 | 885.2 | 935.4 | 1,017.3 | 1,010.8 | 962.2 | 1,781.8 | 1,973.0 | ||||||||||||||||||||||||||||||||||||||||||
| Net Investment Income | 53.7 | 55.3 | 57.3 | 53.8 | 49.6 | 50.5 | 109.0 | 100.1 | ||||||||||||||||||||||||||||||||||||||||||
| Other Income | 1.3 | 2.7 | 2.4 | 2.5 | 2.7 | 1.3 | 4.0 | 4.0 | ||||||||||||||||||||||||||||||||||||||||||
| Total Revenues | 951.6 | 943.2 | 995.1 | 1,073.6 | 1,063.1 | 1,014.0 | 1,894.8 | 2,077.1 | ||||||||||||||||||||||||||||||||||||||||||
| Incurred Losses and LAE related to: | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Current Year: | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Non-catastrophe Losses and LAE | 732.7 | 742.8 | 780.0 | 798.7 | 730.1 | 682.3 | 1,475.5 | 1,412.4 | ||||||||||||||||||||||||||||||||||||||||||
| Catastrophe Losses and LAE | 6.1 | 1.3 | 1.4 | 1.0 | 5.3 | 3.8 | 7.4 | 9.1 | ||||||||||||||||||||||||||||||||||||||||||
| Prior Years: | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Non-catastrophe Losses and LAE | 9.1 | 3.2 | 9.3 | 51.4 | 13.6 | 0.5 | 12.3 | 14.1 | ||||||||||||||||||||||||||||||||||||||||||
| Catastrophe Losses and LAE | 0.1 | 0.4 | (0.8) | — | 0.4 | 0.2 | 0.5 | 0.6 | ||||||||||||||||||||||||||||||||||||||||||
| Total Incurred Losses and LAE | 748.0 | 747.7 | 789.9 | 851.1 | 749.4 | 686.8 | 1,495.7 | 1,436.2 | ||||||||||||||||||||||||||||||||||||||||||
| Insurance Expenses | 184.3 | 196.2 | 202.1 | 214.6 | 214.8 | 205.1 | 380.5 | 419.9 | ||||||||||||||||||||||||||||||||||||||||||
| Segment Adjusted Operating Income (Loss) | 19.3 | (0.7) | 3.1 | 7.9 | 98.9 | 122.1 | 18.6 | 221.0 | ||||||||||||||||||||||||||||||||||||||||||
| Income Tax Expense (Benefit) | 3.5 | (0.8) | 0.5 | 0.3 | 19.9 | 24.2 | 2.7 | 44.1 | ||||||||||||||||||||||||||||||||||||||||||
| Total Segment Adjusted Net Operating Income | $ | 15.8 | $ | 0.1 | $ | 2.6 | $ | 7.6 | $ | 79.0 | $ | 97.9 | $ | 15.9 | $ | 176.9 | ||||||||||||||||||||||||||||||||||
| Ratios Based On Earned Premiums | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Current Year Non-catastrophe Losses and LAE Ratio | 81.7 | % | 84.0 | % | 83.4 | % | 78.5 | % | 72.3 | % | 70.9 | % | 82.8 | % | 71.6 | % | ||||||||||||||||||||||||||||||||||
| Current Year Catastrophe Losses and LAE Ratio | 0.7 | 0.1 | 0.1 | 0.1 | 0.5 | 0.4 | 0.4 | 0.5 | ||||||||||||||||||||||||||||||||||||||||||
| Prior Years Non-catastrophe Losses and LAE Ratio | 1.0 | 0.4 | 1.0 | 5.1 | 1.3 | 0.1 | 0.7 | 0.7 | ||||||||||||||||||||||||||||||||||||||||||
| Prior Years Catastrophe Losses and LAE Ratio | — | — | (0.1) | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
| Total Incurred Loss and LAE Ratio | 83.4 | 84.5 | 84.4 | 83.7 | 74.1 | 71.4 | 83.9 | 72.8 | ||||||||||||||||||||||||||||||||||||||||||
| Insurance Expense Ratio | 20.6 | 22.2 | 21.6 | 21.1 | 21.3 | 21.3 | 21.4 | 21.3 | ||||||||||||||||||||||||||||||||||||||||||
| Combined Ratio | 104.0 | % | 106.7 | % | 106.0 | % | 104.8 | % | 95.4 | % | 92.7 | % | 105.3 | % | 94.1 | % | ||||||||||||||||||||||||||||||||||
Underlying Combined Ratio1 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Current Year Non-catastrophe Losses and LAE Ratio | 81.7 | % | 84.0 | % | 83.4 | % | 78.5 | % | 72.3 | % | 70.9 | % | 82.8 | % | 71.6 | % | ||||||||||||||||||||||||||||||||||
| Insurance Expense Ratio | 20.6 | 22.2 | 21.6 | 21.1 | 21.3 | 21.3 | 21.4 | 21.3 | ||||||||||||||||||||||||||||||||||||||||||
| Underlying Combined Ratio | 102.3 | % | 106.2 | % | 105.0 | % | 99.6 | % | 93.6 | % | 92.2 | % | 104.2 | % | 92.9 | % | ||||||||||||||||||||||||||||||||||
| Non-GAAP Measure Reconciliation | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Combined Ratio as Reported | 104.0 | % | 106.7 | % | 106.0 | % | 104.8 | % | 95.4 | % | 92.7 | % | 105.3 | % | 94.1 | % | ||||||||||||||||||||||||||||||||||
| Less: | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Current Year Catastrophe Losses and LAE Ratio | 0.7 | 0.1 | 0.1 | 0.1 | 0.5 | 0.4 | 0.4 | 0.5 | ||||||||||||||||||||||||||||||||||||||||||
| Prior Years Non-catastrophe Losses and LAE Ratio | 1.0 | 0.4 | 1.0 | 5.1 | 1.3 | 0.1 | 0.7 | 0.7 | ||||||||||||||||||||||||||||||||||||||||||
| Prior Years Catastrophe Losses and LAE Ratio | — | — | (0.1) | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
| Underlying Combined Ratio | 102.3 | % | 106.2 | % | 105.0 | % | 99.6 | % | 93.6 | % | 92.2 | % | 104.2 | % | 92.9 | % | ||||||||||||||||||||||||||||||||||
1Underlying Combined Ratio is a non-GAAP measure, which is computed as the difference between three operating ratios: the combined ratio, the effect of catastrophes (excluding development of prior-year catastrophes) on the combined ratio and the effect of prior-year reserve development at the reporting date (including development on prior-year catastrophes) on the combined ratio. | ||||||||||||||||||||||||||||||||||||||||||||||||||
16
Kemper Corporation
Specialty Property & Casualty Insurance Segment
Results of Operations and Selected Financial Information (continued)
(Dollars in Millions)
(Unaudited)
| Jun 30, 2026 | Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | |||||||||||||||||||||||||||||||||
| Insurance Reserves: | ||||||||||||||||||||||||||||||||||||||
| Personal Automobile | $ | 1,893.9 | $ | 1,880.0 | $ | 1,826.8 | $ | 1,752.1 | $ | 1,661.2 | $ | 1,640.3 | ||||||||||||||||||||||||||
| Commercial Automobile | 1,063.7 | 996.1 | 942.6 | 894.2 | 813.0 | 771.5 | ||||||||||||||||||||||||||||||||
| Insurance Reserves | $ | 2,957.6 | $ | 2,876.1 | $ | 2,769.4 | $ | 2,646.3 | $ | 2,474.2 | $ | 2,411.8 | ||||||||||||||||||||||||||
| Insurance Reserves: | ||||||||||||||||||||||||||||||||||||||
| Loss and Allocated LAE Reserves: | ||||||||||||||||||||||||||||||||||||||
| Case and Allocated LAE | $ | 1,063.5 | $ | 1,027.9 | $ | 960.4 | $ | 932.7 | $ | 906.1 | $ | 930.1 | ||||||||||||||||||||||||||
| Incurred but Not Reported | 1,699.3 | 1,651.8 | 1,610.9 | 1,518.7 | 1,378.8 | 1,300.5 | ||||||||||||||||||||||||||||||||
| Total Loss and LAE Reserves | 2,762.8 | 2,679.7 | 2,571.3 | 2,451.4 | 2,284.9 | 2,230.6 | ||||||||||||||||||||||||||||||||
| Unallocated LAE Reserves | 194.8 | 196.4 | 198.1 | 194.9 | 189.3 | 181.2 | ||||||||||||||||||||||||||||||||
| Insurance Reserves | $ | 2,957.6 | $ | 2,876.1 | $ | 2,769.4 | $ | 2,646.3 | $ | 2,474.2 | $ | 2,411.8 | ||||||||||||||||||||||||||
17
Kemper Corporation
Specialty Property & Casualty Insurance Segment
Personal Automobile Insurance - Results of Operations and Selected Financial Information
(Dollars in Millions)
(Unaudited)
| Three Months Ended | Six Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||
| Jun 30, 2026 | Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Jun 30, 2026 | Jun 30, 2025 | |||||||||||||||||||||||||||||||||||||||||||
| Results of Operations | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Net Premiums Written | $ | 590.7 | $ | 650.4 | $ | 615.6 | $ | 727.6 | $ | 767.0 | $ | 823.9 | $ | 1,241.1 | $ | 1,590.9 | ||||||||||||||||||||||||||||||||||
| Earned Premiums | $ | 647.4 | $ | 647.0 | $ | 696.8 | $ | 785.1 | $ | 789.3 | $ | 753.7 | $ | 1,294.4 | $ | 1,543.0 | ||||||||||||||||||||||||||||||||||
| Net Investment Income | 33.4 | 34.0 | 35.7 | 33.8 | 31.3 | 31.8 | 67.4 | 63.1 | ||||||||||||||||||||||||||||||||||||||||||
| Other Income | 1.1 | 2.7 | 2.3 | 2.3 | 2.6 | 1.2 | 3.8 | 3.8 | ||||||||||||||||||||||||||||||||||||||||||
| Total Revenues | 681.9 | 683.7 | 734.8 | 821.2 | 823.2 | 786.7 | 1,365.6 | 1,609.9 | ||||||||||||||||||||||||||||||||||||||||||
| Incurred Losses and LAE related to: | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Current Year: | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Non-catastrophe Losses and LAE | 543.1 | 568.1 | 607.6 | 629.2 | 571.7 | 528.4 | 1,111.2 | 1,100.1 | ||||||||||||||||||||||||||||||||||||||||||
| Catastrophe Losses and LAE | 5.1 | 1.1 | 1.1 | 0.6 | 4.3 | 2.7 | 6.2 | 7.0 | ||||||||||||||||||||||||||||||||||||||||||
| Prior Years: | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Non-catastrophe Losses and LAE | (8.6) | (2.9) | 0.3 | 8.0 | (5.0) | (4.7) | (11.5) | (9.7) | ||||||||||||||||||||||||||||||||||||||||||
| Catastrophe Losses and LAE | — | 0.4 | (0.8) | (0.1) | 0.3 | 0.1 | 0.4 | 0.4 | ||||||||||||||||||||||||||||||||||||||||||
| Total Incurred Losses and LAE | 539.6 | 566.7 | 608.2 | 637.7 | 571.3 | 526.5 | 1,106.3 | 1,097.8 | ||||||||||||||||||||||||||||||||||||||||||
| Insurance Expenses | 140.5 | 150.6 | 159.1 | 172.5 | 173.7 | 166.8 | 291.1 | 340.5 | ||||||||||||||||||||||||||||||||||||||||||
| Adjusted Operating Income (Loss) | 1.8 | (33.6) | (32.5) | 11.0 | 78.2 | 93.4 | (31.8) | 171.6 | ||||||||||||||||||||||||||||||||||||||||||
| Income Tax Expense (Benefit) | 0.3 | (7.4) | (6.0) | 1.4 | 16.1 | 18.7 | (7.1) | 34.8 | ||||||||||||||||||||||||||||||||||||||||||
| Total Product Line Adjusted Net Operating Income (Loss) | $ | 1.5 | $ | (26.2) | $ | (26.5) | $ | 9.6 | $ | 62.1 | $ | 74.7 | $ | (24.7) | $ | 136.8 | ||||||||||||||||||||||||||||||||||
| Ratios Based On Earned Premiums | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Current Year Non-catastrophe Losses and LAE Ratio | 83.8 | % | 87.7 | % | 87.2 | % | 80.1 | % | 72.5 | % | 70.1 | % | 85.9 | % | 71.2 | % | ||||||||||||||||||||||||||||||||||
| Current Year Catastrophe Losses and LAE Ratio | 0.8 | 0.2 | 0.2 | 0.1 | 0.5 | 0.4 | 0.5 | 0.5 | ||||||||||||||||||||||||||||||||||||||||||
| Prior Years Non-catastrophe Losses and LAE Ratio | (1.3) | (0.4) | — | 1.0 | (0.6) | (0.6) | (0.9) | (0.6) | ||||||||||||||||||||||||||||||||||||||||||
| Prior Years Catastrophe Losses and LAE Ratio | — | 0.1 | (0.1) | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
| Total Incurred Loss and LAE Ratio | 83.3 | 87.6 | 87.3 | 81.2 | 72.4 | 69.9 | 85.5 | 71.1 | ||||||||||||||||||||||||||||||||||||||||||
| Insurance Expense Ratio | 21.7 | 23.3 | 22.8 | 22.0 | 22.0 | 22.1 | 22.5 | 22.1 | ||||||||||||||||||||||||||||||||||||||||||
| Combined Ratio | 105.0 | % | 110.9 | % | 110.1 | % | 103.2 | % | 94.4 | % | 92.0 | % | 108.0 | % | 93.2 | % | ||||||||||||||||||||||||||||||||||
Underlying Combined Ratio1 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Current Year Non-catastrophe Losses and LAE Ratio | 83.8 | % | 87.7 | % | 87.2 | % | 80.1 | % | 72.5 | % | 70.1 | % | 85.9 | % | 71.2 | % | ||||||||||||||||||||||||||||||||||
| Insurance Expense Ratio | 21.7 | 23.3 | 22.8 | 22.0 | 22.0 | 22.1 | 22.5 | 22.1 | ||||||||||||||||||||||||||||||||||||||||||
| Underlying Combined Ratio | 105.5 | % | 111.0 | % | 110.0 | % | 102.1 | % | 94.5 | % | 92.2 | % | 108.4 | % | 93.3 | % | ||||||||||||||||||||||||||||||||||
| Non-GAAP Measure Reconciliation | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Combined Ratio | 105.0 | % | 110.9 | % | 110.1 | % | 103.2 | % | 94.4 | % | 92.0 | % | 108.0 | % | 93.2 | % | ||||||||||||||||||||||||||||||||||
| Less: | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Current Year Catastrophe Losses and LAE Ratio | 0.8 | 0.2 | 0.2 | 0.1 | 0.5 | 0.4 | 0.5 | 0.5 | ||||||||||||||||||||||||||||||||||||||||||
| Prior Years Non-catastrophe Losses and LAE Ratio | (1.3) | (0.4) | — | 1.0 | (0.6) | (0.6) | (0.9) | (0.6) | ||||||||||||||||||||||||||||||||||||||||||
| Prior Years Catastrophe Losses and LAE Ratio | — | 0.1 | (0.1) | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
| Underlying Combined Ratio | 105.5 | % | 111.0 | % | 110.0 | % | 102.1 | % | 94.5 | % | 92.2 | % | 108.4 | % | 93.3 | % | ||||||||||||||||||||||||||||||||||
1Underlying Combined Ratio is a non-GAAP measure, which is computed as the difference between three operating ratios: the combined ratio, the effect of catastrophes (excluding development of prior-year catastrophes) on the combined ratio and the effect of prior-year reserve development at the reporting date (including development on prior-year catastrophes) on the combined ratio. | ||||||||||||||||||||||||||||||||||||||||||||||||||
18
Kemper Corporation
Specialty Property & Casualty Insurance Segment
Commercial Automobile Insurance - Results of Operations and Selected Financial Information
(Dollars in Millions)
(Unaudited)
| Three Months Ended | Six Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||
| Jun 30, 2026 | Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Jun 30, 2026 | Jun 30, 2025 | |||||||||||||||||||||||||||||||||||||||||||
| Results of Operations | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Net Premiums Written | $ | 264.0 | $ | 274.6 | $ | 244.7 | $ | 254.6 | $ | 234.5 | $ | 244.9 | $ | 538.6 | $ | 479.4 | ||||||||||||||||||||||||||||||||||
| Earned Premiums | $ | 249.2 | $ | 238.2 | $ | 238.6 | $ | 232.2 | $ | 221.5 | $ | 208.5 | $ | 487.4 | $ | 430.0 | ||||||||||||||||||||||||||||||||||
| Net Investment Income | 20.3 | 21.3 | 21.6 | 20.0 | 18.3 | 18.7 | 41.6 | 37.0 | ||||||||||||||||||||||||||||||||||||||||||
| Other Income | 0.2 | — | 0.1 | 0.2 | 0.1 | 0.1 | 0.2 | 0.2 | ||||||||||||||||||||||||||||||||||||||||||
| Total Revenues | 269.7 | 259.5 | 260.3 | 252.4 | 239.9 | 227.3 | 529.2 | 467.2 | ||||||||||||||||||||||||||||||||||||||||||
| Incurred Losses and LAE related to: | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Current Year: | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Non-catastrophe Losses and LAE | 189.6 | 174.7 | 172.4 | 169.5 | 158.4 | 153.9 | 364.3 | 312.3 | ||||||||||||||||||||||||||||||||||||||||||
| Catastrophe Losses and LAE | 1.0 | 0.2 | 0.3 | 0.4 | 1.0 | 1.1 | 1.2 | 2.1 | ||||||||||||||||||||||||||||||||||||||||||
| Prior Years: | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Non-catastrophe Losses and LAE | 17.7 | 6.1 | 9.0 | 43.4 | 18.6 | 5.2 | 23.8 | 23.8 | ||||||||||||||||||||||||||||||||||||||||||
| Catastrophe Losses and LAE | 0.1 | — | — | 0.1 | 0.1 | 0.1 | 0.1 | 0.2 | ||||||||||||||||||||||||||||||||||||||||||
| Total Incurred Losses and LAE | 208.4 | 181.0 | 181.7 | 213.4 | 178.1 | 160.3 | 389.4 | 338.4 | ||||||||||||||||||||||||||||||||||||||||||
| Insurance Expenses | 43.8 | 45.6 | 43.0 | 42.1 | 41.1 | 38.3 | 89.4 | 79.4 | ||||||||||||||||||||||||||||||||||||||||||
| Adjusted Operating Income (Loss) | 17.5 | 32.9 | 35.6 | (3.1) | 20.7 | 28.7 | 50.4 | 49.4 | ||||||||||||||||||||||||||||||||||||||||||
| Income Tax Expense (Benefit) | 3.2 | 6.6 | 6.5 | (1.1) | 3.8 | 5.5 | 9.8 | 9.3 | ||||||||||||||||||||||||||||||||||||||||||
| Total Product Line Adjusted Net Operating Income (Loss) | $ | 14.3 | $ | 26.3 | $ | 29.1 | $ | (2.0) | $ | 16.9 | $ | 23.2 | $ | 40.6 | $ | 40.1 | ||||||||||||||||||||||||||||||||||
| Ratios Based On Earned Premiums | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Current Year Non-catastrophe Losses and LAE Ratio | 76.1 | % | 73.3 | % | 72.3 | % | 73.0 | % | 71.5 | % | 73.9 | % | 74.8 | % | 72.7 | % | ||||||||||||||||||||||||||||||||||
| Current Year Catastrophe Losses and LAE Ratio | 0.4 | 0.1 | 0.1 | 0.2 | 0.5 | 0.5 | 0.2 | 0.5 | ||||||||||||||||||||||||||||||||||||||||||
| Prior Years Non-catastrophe Losses and LAE Ratio | 7.1 | 2.6 | 3.8 | 18.7 | 8.4 | 2.5 | 4.9 | 5.5 | ||||||||||||||||||||||||||||||||||||||||||
| Prior Years Catastrophe Losses and LAE Ratio | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
| Total Incurred Loss and LAE Ratio | 83.6 | 76.0 | 76.2 | 91.9 | 80.4 | 76.9 | 79.9 | 78.7 | ||||||||||||||||||||||||||||||||||||||||||
| Insurance Expense Ratio | 17.6 | 19.1 | 18.0 | 18.1 | 18.6 | 18.4 | 18.3 | 18.5 | ||||||||||||||||||||||||||||||||||||||||||
| Combined Ratio | 101.2 | % | 95.1 | % | 94.2 | % | 110.0 | % | 99.0 | % | 95.3 | % | 98.2 | % | 97.2 | % | ||||||||||||||||||||||||||||||||||
Underlying Combined Ratio1 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Current Year Non-catastrophe Losses and LAE Ratio | 76.1 | % | 73.3 | % | 72.3 | % | 73.0 | % | 71.5 | % | 73.9 | % | 74.8 | % | 72.7 | % | ||||||||||||||||||||||||||||||||||
| Insurance Expense Ratio | 17.6 | 19.1 | 18.0 | 18.1 | 18.6 | 18.4 | 18.3 | 18.5 | ||||||||||||||||||||||||||||||||||||||||||
| Underlying Combined Ratio | 93.7 | % | 92.4 | % | 90.3 | % | 91.1 | % | 90.1 | % | 92.3 | % | 93.1 | % | 91.2 | % | ||||||||||||||||||||||||||||||||||
| Non-GAAP Measure Reconciliation | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Combined Ratio | 101.2 | % | 95.1 | % | 94.2 | % | 110.0 | % | 99.0 | % | 95.3 | % | 98.2 | % | 97.2 | % | ||||||||||||||||||||||||||||||||||
| Less: | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Current Year Catastrophe Losses and LAE Ratio | 0.4 | 0.1 | 0.1 | 0.2 | 0.5 | 0.5 | 0.2 | 0.5 | ||||||||||||||||||||||||||||||||||||||||||
| Prior Years Non-catastrophe Losses and LAE Ratio | 7.1 | 2.6 | 3.8 | 18.7 | 8.4 | 2.5 | 4.9 | 5.5 | ||||||||||||||||||||||||||||||||||||||||||
| Prior Years Catastrophe Losses and LAE Ratio | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
| Underlying Combined Ratio | 93.7 | % | 92.4 | % | 90.3 | % | 91.1 | % | 90.1 | % | 92.3 | % | 93.1 | % | 91.2 | % | ||||||||||||||||||||||||||||||||||
1Underlying Combined Ratio is a non-GAAP measure, which is computed as the difference between three operating ratios: the combined ratio, the effect of catastrophes (excluding development of prior-year catastrophes) on the combined ratio and the effect of prior-year reserve development at the reporting date (including development on prior-year catastrophes) on the combined ratio. | ||||||||||||||||||||||||||||||||||||||||||||||||||
19
Kemper Corporation
Life Insurance Segment
Results of Operations and Selected Financial Information
(Dollars in Millions)
(Unaudited)
| Three Months Ended | Six Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||
| Jun 30, 2026 | Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Jun 30, 2026 | Jun 30, 2025 | |||||||||||||||||||||||||||||||||||||||||||
| Results of Operations | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Earned Premiums | $ | 102.7 | $ | 100.8 | $ | 93.4 | $ | 99.8 | $ | 100.5 | $ | 99.7 | $ | 203.5 | $ | 200.2 | ||||||||||||||||||||||||||||||||||
| Net Investment Income | 49.3 | 48.7 | 47.1 | 48.0 | 44.7 | 48.4 | 98.0 | 93.1 | ||||||||||||||||||||||||||||||||||||||||||
| Other Income | 0.4 | 0.3 | 0.2 | 0.4 | 0.3 | 0.7 | 0.7 | 1.0 | ||||||||||||||||||||||||||||||||||||||||||
| Total Revenues | 152.4 | 149.8 | 140.7 | 148.2 | 145.5 | 148.8 | 302.2 | 294.3 | ||||||||||||||||||||||||||||||||||||||||||
| Policyholders’ Benefits and Incurred Losses and LAE | 63.5 | 64.0 | 52.5 | 60.5 | 63.5 | 62.2 | 127.5 | 125.7 | ||||||||||||||||||||||||||||||||||||||||||
| Insurance Expenses | 67.3 | 64.6 | 64.7 | 65.6 | 67.7 | 66.4 | 131.9 | 134.1 | ||||||||||||||||||||||||||||||||||||||||||
| Segment Adjusted Operating Income | 21.6 | 21.2 | 23.5 | 22.1 | 14.3 | 20.2 | 42.8 | 34.5 | ||||||||||||||||||||||||||||||||||||||||||
| Income Tax Expense | 3.3 | 3.2 | 3.4 | 3.5 | 1.7 | 3.0 | 6.5 | 4.7 | ||||||||||||||||||||||||||||||||||||||||||
| Total Segment Adjusted Net Operating Income | $ | 18.3 | $ | 18.0 | $ | 20.1 | $ | 18.6 | $ | 12.6 | $ | 17.2 | $ | 36.3 | $ | 29.8 | ||||||||||||||||||||||||||||||||||
20
Kemper Corporation
Life Insurance Segment
Results of Operations and Selected Financial Information (continued)
(Dollars in Millions)
(Unaudited)
| Jun 30, 2026 | Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | |||||||||||||||||||||||||||||||||
| Insurance Reserves: | ||||||||||||||||||||||||||||||||||||||
| Future Policyholder Benefits | $ | 3,238.1 | $ | 3,199.9 | $ | 3,248.1 | $ | 3,282.2 | $ | 3,196.5 | $ | 3,186.0 | ||||||||||||||||||||||||||
| Incurred Losses and LAE Reserves: | ||||||||||||||||||||||||||||||||||||||
| Life | 35.3 | 34.4 | 35.0 | 31.1 | 34.3 | 39.0 | ||||||||||||||||||||||||||||||||
| Accident and Health | 4.7 | 4.6 | 4.4 | 4.3 | 4.5 | 4.5 | ||||||||||||||||||||||||||||||||
| Property | 1.8 | 1.8 | 1.9 | 2.0 | 2.1 | 2.1 | ||||||||||||||||||||||||||||||||
| Total Incurred Losses and LAE Reserves | 41.8 | 40.8 | 41.3 | 37.4 | 40.9 | 45.6 | ||||||||||||||||||||||||||||||||
| Insurance Reserves | $ | 3,279.9 | $ | 3,240.7 | $ | 3,289.4 | $ | 3,319.6 | $ | 3,237.4 | $ | 3,231.6 | ||||||||||||||||||||||||||
21
Kemper Corporation
Expenses
(Dollars in Millions)
(Unaudited)
| Three Months Ended | Six Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||
| Jun 30, 2026 | Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Jun 30, 2026 | Jun 30, 2025 | |||||||||||||||||||||||||||||||||||||||||||
| Insurance and Other Expenses: | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Insurance Expenses: | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Policy Acquisition Costs | $ | 156.8 | $ | 152.7 | $ | 162.9 | $ | 173.8 | $ | 177.1 | $ | 164.3 | $ | 309.5 | $ | 341.4 | ||||||||||||||||||||||||||||||||||
| Business Unit Operating Costs | 58.6 | 69.2 | 70.0 | 94.2 | 71.4 | 75.1 | 127.8 | 146.5 | ||||||||||||||||||||||||||||||||||||||||||
Corporate Overhead Costs | 43.4 | 46.4 | 43.5 | 43.7 | 44.6 | 46.7 | 89.8 | 91.3 | ||||||||||||||||||||||||||||||||||||||||||
| Insurance Expenses | 258.8 | 268.3 | 276.4 | 311.7 | 293.1 | 286.1 | 527.1 | 579.2 | ||||||||||||||||||||||||||||||||||||||||||
| Other Expenses: | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Acquisition and Disposition Related Transaction, Integration, Restructuring and Other Costs | 10.6 | 6.3 | 5.0 | 22.9 | 4.8 | 5.3 | 16.9 | 10.1 | ||||||||||||||||||||||||||||||||||||||||||
Other Corporate Costs | 3.0 | 2.4 | — | 4.5 | 2.1 | 3.1 | 5.4 | 5.2 | ||||||||||||||||||||||||||||||||||||||||||
| Other Expenses | 13.6 | 8.7 | 5.0 | 27.4 | 6.9 | 8.4 | 22.3 | 15.3 | ||||||||||||||||||||||||||||||||||||||||||
| Insurance and Other Expenses | 272.4 | 277.0 | 281.4 | 339.1 | 300.0 | 294.5 | 549.4 | 594.5 | ||||||||||||||||||||||||||||||||||||||||||
| Interest Expense | 8.9 | 9.3 | 9.0 | 9.1 | 9.0 | 11.4 | 18.2 | 20.4 | ||||||||||||||||||||||||||||||||||||||||||
| Goodwill Impairment | 460.0 | — | — | — | — | — | 460.0 | — | ||||||||||||||||||||||||||||||||||||||||||
Total Insurance, Interest, and Other Expenses | $ | 741.3 | $ | 286.3 | $ | 290.4 | $ | 348.2 | $ | 309.0 | $ | 305.9 | $ | 1,027.6 | $ | 614.9 | ||||||||||||||||||||||||||||||||||
22
Kemper Corporation
Details of Investment Performance
(Dollars in Millions)
(Unaudited)
Three Months Ended | Six Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||
| Jun 30, 2026 | Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Jun 30, 2026 | Jun 30, 2025 | |||||||||||||||||||||||||||||||||||||||||||
| Net Investment Income | ||||||||||||||||||||||||||||||||||||||||||||||||||
Interest on Fixed Maturities1 | $ | 80.9 | $ | 79.4 | $ | 77.0 | $ | 79.1 | $ | 76.9 | $ | 76.4 | $ | 160.3 | $ | 153.3 | ||||||||||||||||||||||||||||||||||
| Dividends on Equity Securities Excluding Alternative Investments | 2.1 | 0.7 | 4.4 | 2.1 | 0.7 | 0.8 | 2.8 | 1.5 | ||||||||||||||||||||||||||||||||||||||||||
| Alternative Investments: | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Equity Method Limited Liability Investments | 1.2 | 0.6 | (1.0) | — | (5.3) | (0.7) | 1.8 | (6.0) | ||||||||||||||||||||||||||||||||||||||||||
| Limited Liability Investments Included in Equity Securities | 3.5 | 7.1 | 2.9 | 4.0 | 3.1 | 3.7 | 10.6 | 6.8 | ||||||||||||||||||||||||||||||||||||||||||
| Total Alternative Investments | 4.7 | 7.7 | 1.9 | 4.0 | (2.2) | 3.0 | 12.4 | 0.8 | ||||||||||||||||||||||||||||||||||||||||||
| Short-term Investments | 2.7 | 3.1 | 4.0 | 4.2 | 6.0 | 8.6 | 5.8 | 14.6 | ||||||||||||||||||||||||||||||||||||||||||
| Loans to Policyholders | 5.2 | 5.3 | 5.2 | 5.2 | 5.1 | 5.3 | 10.5 | 10.4 | ||||||||||||||||||||||||||||||||||||||||||
| Real Estate | 2.7 | 2.3 | 2.4 | 2.5 | 2.3 | 2.2 | 5.0 | 4.5 | ||||||||||||||||||||||||||||||||||||||||||
Company-Owned Life Insurance | 12.1 | 11.5 | 11.4 | 10.8 | 10.5 | 10.2 | 23.6 | 20.7 | ||||||||||||||||||||||||||||||||||||||||||
| Other | 3.3 | 4.0 | 3.1 | 3.1 | 3.3 | 2.0 | 7.3 | 5.3 | ||||||||||||||||||||||||||||||||||||||||||
| Total Investment Income | 113.7 | 114.0 | 109.4 | 111.0 | 102.6 | 108.5 | 227.7 | 211.1 | ||||||||||||||||||||||||||||||||||||||||||
| Investment Expenses: | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Real Estate | 2.7 | 1.8 | 2.7 | 2.0 | 2.2 | 2.1 | 4.5 | 4.3 | ||||||||||||||||||||||||||||||||||||||||||
| Other Investment Expenses | 5.6 | 5.1 | 3.6 | 4.2 | 4.5 | 5.2 | 10.7 | 9.7 | ||||||||||||||||||||||||||||||||||||||||||
| Total Investment Expenses | 8.3 | 6.9 | 6.3 | 6.2 | 6.7 | 7.3 | 15.2 | 14.0 | ||||||||||||||||||||||||||||||||||||||||||
| Net Investment Income | $ | 105.4 | $ | 107.1 | $ | 103.1 | $ | 104.8 | $ | 95.9 | $ | 101.2 | $ | 212.5 | $ | 197.1 | ||||||||||||||||||||||||||||||||||
| Net Realized Investment Gains (Losses) | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Fixed Maturities: | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Gains on Sales | $ | 1.3 | $ | 2.6 | $ | 0.9 | $ | 3.7 | $ | 0.4 | $ | 1.3 | $ | 3.9 | $ | 1.7 | ||||||||||||||||||||||||||||||||||
| Losses on Sales | (0.7) | (2.4) | (0.6) | (0.5) | (0.5) | (0.5) | (3.1) | (1.0) | ||||||||||||||||||||||||||||||||||||||||||
| Equity Securities: | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Gains on Sales | — | 0.2 | 0.4 | 0.5 | — | — | 0.2 | — | ||||||||||||||||||||||||||||||||||||||||||
| Losses on Sales | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
| Other Investments: | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Gains on Sales | — | — | 0.1 | 0.2 | — | 0.1 | — | 0.1 | ||||||||||||||||||||||||||||||||||||||||||
| Losses on Sales | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
| Net Realized Investment Gains (Losses) | $ | 0.6 | $ | 0.4 | $ | 0.8 | $ | 3.9 | $ | (0.1) | $ | 0.9 | $ | 1.0 | $ | 0.8 | ||||||||||||||||||||||||||||||||||
| Net Impairment Losses Recognized in Earnings | ||||||||||||||||||||||||||||||||||||||||||||||||||
Other Assets2 | $ | (21.0) | $ | — | $ | — | $ | — | $ | — | $ | — | $ | (21.0) | $ | — | ||||||||||||||||||||||||||||||||||
| Fixed Maturities | (2.7) | (0.8) | (4.6) | (2.9) | (3.6) | 0.3 | (3.5) | (3.3) | ||||||||||||||||||||||||||||||||||||||||||
| Real Estate | (0.6) | (0.2) | 0.2 | (0.1) | — | — | (0.8) | — | ||||||||||||||||||||||||||||||||||||||||||
| Other | 0.6 | (0.7) | — | (0.1) | — | — | (0.1) | — | ||||||||||||||||||||||||||||||||||||||||||
| Net Impairment Losses Recognized in Earnings | $ | (23.7) | $ | (1.7) | $ | (4.4) | $ | (3.1) | $ | (3.6) | $ | 0.3 | $ | (25.4) | $ | (3.3) | ||||||||||||||||||||||||||||||||||
1Reduced by interest expense incurred on FHLB borrowings used for spread lending purposes of $3.5 million, $3.9 million, $4.4 million, $4.7 million, $4.8 million, $4.8 million, for the three months ended June 30, 2026, March 31, 2026, December 31, 2025, September 30, 2025, June 30, 2025 and March 31, 2025, respectively. | ||||||||||||||||||||||||||||||||||||||||||||||||||
2 During the second quarter of 2026, the Company established an allowance for credit loss for the surplus notes related to the Reciprocal Exchange. | ||||||||||||||||||||||||||||||||||||||||||||||||||
23
Kemper Corporation
Details of Invested Assets
(Dollars in Millions)
(Unaudited)
| Jun 30, 2026 | Dec 31, 2025 | Dec 31, 2024 | ||||||||||||||||||||||||||||||||||||
| Carrying Value | Percent of Total | Carrying Value | Percent of Total | Carrying Value | Percent of Total | |||||||||||||||||||||||||||||||||
| Fixed Maturities Reported at Fair Value: | ||||||||||||||||||||||||||||||||||||||
| U.S. Government and Government Agencies and Authorities | $ | 641.8 | 7.4 | % | $ | 622.4 | 7.2 | % | $ | 486.8 | 5.5 | % | ||||||||||||||||||||||||||
| States and Political Subdivisions | 1,233.3 | 14.3 | 1,253.2 | 14.5 | 1,233.2 | 13.9 | ||||||||||||||||||||||||||||||||
| Foreign Governments | 8.5 | 0.1 | 11.0 | 0.1 | 6.6 | 0.1 | ||||||||||||||||||||||||||||||||
| Corporate Securities: | ||||||||||||||||||||||||||||||||||||||
| Bonds and Notes | 3,710.3 | 42.9 | 3,650.3 | 42.2 | 3,519.6 | 39.6 | ||||||||||||||||||||||||||||||||
| Redeemable Preferred Stocks | 9.8 | 0.1 | 10.2 | 0.1 | 8.9 | 0.1 | ||||||||||||||||||||||||||||||||
| Collateralized Loan Obligations | 768.8 | 8.9 | 843.0 | 9.7 | 741.5 | 8.3 | ||||||||||||||||||||||||||||||||
| Other Mortgage- and Asset-backed | 348.6 | 4.0 | 353.2 | 4.1 | 413.0 | 4.6 | ||||||||||||||||||||||||||||||||
| Total Fixed Maturities Reported at Fair Value | 6,721.1 | 77.7 | 6,743.3 | 77.9 | 6,409.6 | 72.1 | ||||||||||||||||||||||||||||||||
| Equity Securities Reported at Fair Value: | ||||||||||||||||||||||||||||||||||||||
| Preferred Stocks | 19.4 | 0.2 | 19.2 | 0.2 | 22.6 | 0.3 | ||||||||||||||||||||||||||||||||
| Common Stocks | 57.1 | 0.7 | 65.0 | 0.7 | 1.4 | — | ||||||||||||||||||||||||||||||||
| Other Equity Interests: | ||||||||||||||||||||||||||||||||||||||
| Exchange Traded Funds | 11.6 | 0.1 | 11.9 | 0.1 | 10.9 | 0.1 | ||||||||||||||||||||||||||||||||
| Limited Liability Companies and Limited Partnerships | 221.5 | 2.6 | 210.3 | 2.4 | 183.6 | 2.1 | ||||||||||||||||||||||||||||||||
| Total Equity Securities Reported at Fair Value | 309.6 | 3.6 | 306.4 | 3.4 | 218.5 | 2.5 | ||||||||||||||||||||||||||||||||
| Equity Method Limited Liability Investments | 183.0 | 2.1 | 176.0 | 2.0 | 186.3 | 2.1 | ||||||||||||||||||||||||||||||||
| Short-term Investments at Cost which Approximates Fair Value | 271.4 | 3.2 | 313.5 | 3.6 | 1,037.1 | 11.7 | ||||||||||||||||||||||||||||||||
| Company-Owned Life Insurance | 598.2 | 6.9 | 579.2 | 6.7 | 539.2 | 6.1 | ||||||||||||||||||||||||||||||||
| Loans to Policyholders | 279.4 | 3.2 | 279.9 | 3.2 | 280.7 | 3.2 | ||||||||||||||||||||||||||||||||
| Other Investments: | ||||||||||||||||||||||||||||||||||||||
| Equity Securities Reported at Modified Cost | 18.6 | 0.2 | 21.7 | 0.3 | 22.5 | 0.2 | ||||||||||||||||||||||||||||||||
| Real Estate at Depreciated Cost | 95.6 | 1.1 | 92.7 | 1.1 | 99.5 | 1.1 | ||||||||||||||||||||||||||||||||
| Mortgage Loans | 151.0 | 1.8 | 149.8 | 1.7 | 75.3 | 0.8 | ||||||||||||||||||||||||||||||||
| Other | 17.5 | 0.2 | 7.1 | 0.1 | 19.8 | 0.2 | ||||||||||||||||||||||||||||||||
| Total Other Investments | 282.7 | 3.3 | 271.3 | 3.2 | 217.1 | 2.3 | ||||||||||||||||||||||||||||||||
| Total Investments | $ | 8,645.4 | 100.0 | % | $ | 8,669.6 | 100.0 | % | $ | 8,888.5 | 100.0 | % | ||||||||||||||||||||||||||
24
Kemper Corporation
Details of Invested Assets (continued)
(Dollars in Millions)
(Unaudited)
| Jun 30, 2026 | Dec 31, 2025 | Dec 31, 2024 | ||||||||||||||||||||||||||||||||||||
| Carrying Value | Percent of Total | Carrying Value | Percent of Total | Carrying Value | Percent of Total | |||||||||||||||||||||||||||||||||
S&P Equivalent Rating for Fixed Maturities | ||||||||||||||||||||||||||||||||||||||
AAA, AA, A | $ | 4,674.8 | 69.6 | % | $ | 4,750.5 | 70.5 | % | $ | 4,576.4 | 71.4 | % | ||||||||||||||||||||||||||
BBB | 1,595.3 | 23.7 | 1,574.4 | 23.3 | 1,557.6 | 24.3 | ||||||||||||||||||||||||||||||||
BB, B | 410.1 | 6.1 | 375.1 | 5.6 | 221.7 | 3.5 | ||||||||||||||||||||||||||||||||
CCC or Lower | 40.9 | 0.6 | 43.3 | 0.6 | 53.9 | 0.8 | ||||||||||||||||||||||||||||||||
Total Investments in Fixed Maturities | $ | 6,721.1 | 100.0 | % | $ | 6,743.3 | 100.0 | % | $ | 6,409.6 | 100.0 | % | ||||||||||||||||||||||||||
Duration (in Years) | ||||||||||||||||||||||||||||||||||||||
Total Investments in Fixed Maturities | 7.4 | 7.4 | 7.7 | |||||||||||||||||||||||||||||||||||
25
Kemper Corporation
Investments in Limited Liability
Companies and Limited Partnerships
(Dollars in Millions)
(Unaudited)
| Unfunded Commitment | Reported Value | |||||||||||||||||||
| Asset Class | Jun 30, 2026 | Jun 30, 2026 | Dec 31, 2025 | |||||||||||||||||
| Reported as Equity Method Limited Liability Investments: | ||||||||||||||||||||
| Senior Debt | $ | 54.2 | $ | 21.2 | $ | 21.1 | ||||||||||||||
| Mezzanine Debt | 39.4 | 118.8 | 115.5 | |||||||||||||||||
| Leveraged Buyout | 11.9 | 7.1 | 6.5 | |||||||||||||||||
| Real Estate | — | 26.0 | 24.1 | |||||||||||||||||
| Other | 1.8 | 9.9 | 8.8 | |||||||||||||||||
| Total Equity Method Limited Liability Investments | 107.3 | 183.0 | 176.0 | |||||||||||||||||
| Reported as Other Equity Interests at Fair Value: | ||||||||||||||||||||
| Mezzanine Debt | 83.5 | 120.1 | 115.8 | |||||||||||||||||
| Leveraged Buyout | 41.9 | 44.0 | 40.5 | |||||||||||||||||
| Distressed Debt | 17.5 | 9.5 | 10.8 | |||||||||||||||||
| Senior Debt | 7.3 | 24.5 | 25.5 | |||||||||||||||||
| Growth Equity | 4.7 | 11.9 | 10.7 | |||||||||||||||||
| Other | 3.9 | 11.5 | 7.0 | |||||||||||||||||
| Total Reported as Other Equity Interests at Fair Value | 158.8 | 221.5 | 210.3 | |||||||||||||||||
| Other Equity Investments | — | 4.5 | 5.9 | |||||||||||||||||
| Total Investments in Limited Liability Companies and Limited Partnerships | $ | 266.1 | $ | 409.0 | $ | 392.2 | ||||||||||||||
26
Kemper Corporation
Definitions of Non-GAAP Financial Measures
The Company believes that investors’ understanding of Kemper’s performance is enhanced by the disclosure of the following non-GAAP financial measures. The methods for calculating these measures may differ from those used by other companies and therefore comparability may be limited.
Adjusted Consolidated Net Operating Income is an after-tax, non-GAAP financial measure and is computed by excluding from Net (Loss) Income attributable to Kemper Corporation the after-tax impact of:
(i) Change in Fair Value of Equity and Convertible Securities;
(ii) Net Realized Investment Gains (Losses);
(iii) Impairment Losses;
(iv) Acquisition and Disposition Related Transaction, Integration, Restructuring and Other Costs;
(v) Debt Extinguishment and Other Charges;
(vi) Goodwill Impairment;
(vii) Non-Core Operations; and
(viii) Significant non-recurring or infrequent items that may not be indicative of ongoing operations
Significant non-recurring items are excluded when (a) the nature of the charge or gain is such that it is reasonably unlikely to recur within two years, and (b) there has been no similar charge or gain within the prior two years. The most directly comparable GAAP financial measure is Net (Loss) Income attributable to Kemper Corporation. There were no applicable significant non-recurring items that the Company excluded from the calculation of Adjusted Consolidated Net Operating Income for the three and six months ended June 30, 2026 or 2025.
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. Change in Fair Value of Equity and Convertible Securities, Net Realized Investment Gains (Losses) and Impairment Losses related to investments included in the Company’s results may vary significantly between periods and are generally driven by business decisions and external economic developments such as capital market conditions that impact the values of the Company’s investments, the timing of which is unrelated to the insurance underwriting process. Acquisition and Disposition Related Transaction, Integration, Restructuring and Other Costs may vary significantly between periods and are generally driven by the timing of business decisions which are unrelated to the insurance underwriting process. In the second quarter of 2026, the Company completed the sale of Newins and recorded a gain in connection with the transaction. In the third quarter of 2025, a restructuring program was launched to achieve operational and organizational efficiencies. The Company will continue to evaluate additional efficiency opportunities through 2027. Debt Extinguishment 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; and (ii) other charges that are non-standard, not part of the ordinary course of business, and unrelated to the insurance underwriting process. Goodwill Impairments are excluded because they are infrequent and non-recurring charges. Non-Core Operations includes the results of our Preferred Insurance business which we expect to fully exit. These results are excluded because they are irrelevant to our ongoing operations and do not qualify for Discontinued Operations under GAAP. Significant non-recurring items are excluded because, by their nature, they are not indicative of the Company’s business or economic trends. The preceding non-GAAP financial measures should not be considered a substitute for the comparable GAAP financial measures, as they do not fully recognize the profitability of the Company’s businesses.
27
Kemper Corporation
Definitions of Non-GAAP Financial Measures (continued)
A reconciliation of Net (Loss) Income attributable to Kemper Corporation to Adjusted Consolidated Net Operating Income is presented below:
| Three Months Ended | Six Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||
| Dollars in Millions (Unaudited) | Jun 30, 2026 | Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Jun 30, 2026 | Jun 30, 2025 | ||||||||||||||||||||||||||||||||||||||||||
Net (Loss) Income attributable to Kemper Corporation | $ | (464.8) | $ | (1.7) | $ | (8.0) | $ | (21.0) | $ | 72.6 | $ | 99.7 | $ | (466.5) | $ | 172.3 | ||||||||||||||||||||||||||||||||||
Less Net (Loss) Income From: | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Change in Fair Value of Equity and Convertible Securities | (1.4) | (1.0) | (1.4) | (1.7) | (0.4) | 0.1 | (2.4) | (0.3) | ||||||||||||||||||||||||||||||||||||||||||
| Net Realized Investment Gains (Losses) | 0.5 | 0.3 | 0.6 | 3.1 | (0.1) | 0.7 | 0.8 | 0.6 | ||||||||||||||||||||||||||||||||||||||||||
| Impairment Losses | (18.8) | (1.3) | (3.4) | (2.5) | (2.8) | 0.2 | (20.1) | (2.6) | ||||||||||||||||||||||||||||||||||||||||||
| Acquisition and Disposition Related Transaction, Integration, Restructuring and Other Costs | (11.6) | (5.0) | (15.5) | (19.6) | (3.8) | (4.2) | (16.6) | (8.0) | ||||||||||||||||||||||||||||||||||||||||||
| Debt Extinguishment and Other Charges | — | — | — | — | — | 0.4 | — | 0.4 | ||||||||||||||||||||||||||||||||||||||||||
| Goodwill Impairment | (460.0) | — | — | — | — | — | (460.0) | — | ||||||||||||||||||||||||||||||||||||||||||
| Non-Core Operations | 0.2 | (7.2) | (2.9) | (20.7) | (4.4) | (3.9) | (7.0) | (8.3) | ||||||||||||||||||||||||||||||||||||||||||
| Adjusted Consolidated Net Operating Income | $ | 26.3 | $ | 12.5 | $ | 14.6 | $ | 20.4 | $ | 84.1 | $ | 106.4 | $ | 38.8 | $ | 190.5 | ||||||||||||||||||||||||||||||||||
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 (Loss) Income attributable to Kemper Corporation per Unrestricted Share ‐ basic. A reconciliation of Net (Loss) Income attributable to Kemper Corporation per Unrestricted Share - basic to Adjusted Consolidated Net Operating Income per Unrestricted Share is presented below:
| Three Months Ended | Six Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||
| Dollars in Millions (Unaudited) | Jun 30, 2026 | Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Jun 30, 2026 | Jun 30, 2025 | ||||||||||||||||||||||||||||||||||||||||||
Net (Loss) Income attributable to Kemper Corporation per Unrestricted Share | $ | (7.90) | $ | (0.03) | $ | (0.13) | $ | (0.34) | $ | 1.13 | $ | 1.56 | $ | (7.93) | $ | 2.69 | ||||||||||||||||||||||||||||||||||
Less Net (Loss) Income per Unrestricted Share From: | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Change in Fair Value of Equity and Convertible Securities | (0.02) | (0.02) | (0.02) | (0.03) | — | — | (0.04) | — | ||||||||||||||||||||||||||||||||||||||||||
| Net Realized Investment Gains | — | 0.01 | 0.01 | 0.05 | — | 0.01 | 0.01 | 0.01 | ||||||||||||||||||||||||||||||||||||||||||
| Impairment Losses | (0.32) | (0.02) | (0.06) | (0.04) | (0.04) | — | (0.34) | (0.04) | ||||||||||||||||||||||||||||||||||||||||||
| Acquisition and Disposition Related Transaction, Integration, Restructuring and Other Costs | (0.19) | (0.09) | (0.26) | (0.32) | (0.07) | (0.07) | (0.28) | (0.14) | ||||||||||||||||||||||||||||||||||||||||||
| Debt Extinguishment and Other Charges | — | — | — | — | — | 0.01 | — | 0.01 | ||||||||||||||||||||||||||||||||||||||||||
| Goodwill Impairment | (7.82) | — | — | — | — | — | (7.82) | — | ||||||||||||||||||||||||||||||||||||||||||
| Non-Core Operations | — | (0.12) | (0.05) | (0.33) | (0.07) | (0.06) | (0.12) | (0.13) | ||||||||||||||||||||||||||||||||||||||||||
| Adjusted Consolidated Net Operating Income per Unrestricted Share | $ | 0.45 | $ | 0.21 | $ | 0.25 | $ | 0.33 | $ | 1.31 | $ | 1.67 | $ | 0.66 | $ | 2.98 | ||||||||||||||||||||||||||||||||||
28
Kemper Corporation
Definitions of Non-GAAP Financial Measures (continued)
Return on Adjusted Shareholders' Equity is a calculation that uses a non-GAAP financial measure. It is calculated by dividing the period’s annualized Net (Loss) Income attributable to Kemper Corporation, excluding the annualization of the after-tax goodwill impairment and the credit loss allowance recognized on the Reciprocal Exchange surplus notes, by the average shareholders’ equity excluding net unrealized gains and losses on fixed maturities, the change in discount rate on future life policyholder benefits and goodwill. Return on Shareholders' Equity is the most directly comparable GAAP measure. We use this non-GAAP measure to identify and analyze the change in performance attributable to management efforts between periods. The Company believes this non-GAAP financial measure is useful to investors because it eliminates the effect of items that can fluctuate significantly from period to period and are generally driven by economic developments, primarily capital market conditions, the magnitude and timing of which are not influenced by management. The Company believes it enhances understanding and comparability of performance by highlighting underlying business activity and profitability drivers.
A reconciliation of Return on Shareholders’ Equity to Return on Adjusted Shareholders' Equity is presented below:
| Three Months Ended | Six Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||
| Dollars in Millions (Unaudited) | Jun 30, 2026 | Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Jun 30, 2026 | Jun 30, 2025 | ||||||||||||||||||||||||||||||||||||||||||
| Numerator: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Annualized Net (Loss) Income attributable to Kemper Corporation1 | $ | (429.4) | $ | (6.8) | $ | (32.0) | $ | (84.0) | $ | 290.4 | $ | 398.8 | $ | (456.4) | $ | 344.6 | ||||||||||||||||||||||||||||||||||
| Denominator: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Average Shareholders' Equity2 | $ | 2,421.2 | $ | 2,665.5 | $ | 2,706.8 | $ | 2,842.8 | $ | 2,935.5 | $ | 2,853.0 | $ | 2,507.9 | $ | 2,886.5 | ||||||||||||||||||||||||||||||||||
Less: Average Net Unrealized Losses on Fixed Maturities | 616.6 | 601.5 | 559.8 | 595.9 | 638.6 | 667.6 | 599.8 | 657.9 | ||||||||||||||||||||||||||||||||||||||||||
| Less: Average Change in Discount Rate on Future Life Policyholder Benefits | (391.9) | (376.0) | (333.4) | (343.0) | (368.0) | (373.2) | (378.2) | (372.1) | ||||||||||||||||||||||||||||||||||||||||||
| Less: Average Goodwill | (1,017.1) | (1,250.7) | (1,250.7) | (1,250.7) | (1,250.7) | (1,250.7) | (1,094.9) | (1,250.7) | ||||||||||||||||||||||||||||||||||||||||||
Average Adjusted Shareholders' Equity2 | $ | 1,628.8 | $ | 1,640.3 | $ | 1,682.5 | $ | 1,845.0 | $ | 1,955.4 | $ | 1,896.7 | $ | 1,634.6 | $ | 1,921.6 | ||||||||||||||||||||||||||||||||||
Return on Shareholders' Equity: | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Return on Shareholders' Equity | (17.7) | % | (0.3) | % | (1.2) | % | (3.0) | % | 9.9 | % | 14.0 | % | (18.2) | % | 11.9 | % | ||||||||||||||||||||||||||||||||||
| Return on Adjusted Shareholders' Equity | (26.4) | % | (0.4) | % | (1.9) | % | (4.6) | % | 14.9 | % | 21.0 | % | (27.9) | % | 17.9 | % | ||||||||||||||||||||||||||||||||||
1 Excludes the annualization of the $460.0 million after-tax goodwill impairment and the $16.6 million after-tax credit loss allowance ($21.0 million pre-tax) recognized on the Reciprocal Exchange surplus notes for the three and six months ended June 30, 2026. | ||||||||||||||||||||||||||||||||||||||||||||||||||
2 Average shareholders' equity and average adjusted shareholders’ equity for the three months ended is the simple average of the beginning and ending balances for the period. Average shareholders’ equity and average adjusted shareholders’ equity on a year-to-date basis is the (a) the sum of the balance at the beginning of the year and the ending balance for each quarter within that year divided by (b) the number of quarters in the period presented plus one. | ||||||||||||||||||||||||||||||||||||||||||||||||||
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.
29
Kemper Corporation
Definitions of Non-GAAP Financial Measures (continued)
Adjusted Book Value Per Share is a calculation that uses a non-GAAP financial measure. It is calculated by dividing shareholders’ equity after excluding the after-tax impact of net unrealized gains and losses on fixed income securities, the change in discount rate on future life policyholder benefits and goodwill by total Common Shares Issued and Outstanding. Book value per share is the most directly comparable GAAP financial measure. The Company uses the trends in book value per share excluding the after-tax impact of net unrealized gains and losses on fixed income securities, the change in discount rate on future life policyholder benefits and goodwill in conjunction with book value per share to identify and analyze the change in net worth excluding goodwill attributable to management efforts between periods. The Company believes the non-GAAP financial measure is useful to investors because it eliminates the effect of items that can fluctuate significantly from period to period and are generally driven by economic developments, primarily capital market conditions, the magnitude and timing of which are not influenced by management. The Company believes it enhances understanding and comparability of performance by highlighting underlying business activity and profitability drivers. The “Adjusted Book Value Per Share” metric was referred to as “Tangible Book Value Per Share” in prior periods.
A reconciliation of Book Value Per Share to Adjusted Book Value Per Share is presented below:
| As of | ||||||||||||||||||||||||||||||||||||||
| Dollars and Shares in Millions Except Per Share Amounts (Unaudited) | Jun 30, 2026 | Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | ||||||||||||||||||||||||||||||||
| Numerator: | ||||||||||||||||||||||||||||||||||||||
| Kemper Corporation Shareholders’ Equity | $ | 2,192.8 | $ | 2,649.6 | $ | 2,681.4 | $ | 2,732.1 | $ | 2,953.4 | $ | 2,917.6 | ||||||||||||||||||||||||||
Less: Net Unrealized Losses on Fixed Maturities | 596.5 | 636.7 | 566.2 | 553.4 | 638.6 | 638.6 | ||||||||||||||||||||||||||||||||
| Less: Change in Discount Rate on Future Life Policyholder Benefits | (382.7) | (401.1) | (350.8) | (316.0) | (370.0) | (366.0) | ||||||||||||||||||||||||||||||||
| Less: Goodwill | (783.5) | (1,250.7) | (1,250.7) | (1,250.7) | (1,250.7) | (1,250.7) | ||||||||||||||||||||||||||||||||
| Adjusted Shareholders' Equity | $ | 1,623.1 | $ | 1,634.5 | $ | 1,646.1 | $ | 1,718.8 | $ | 1,971.3 | $ | 1,939.5 | ||||||||||||||||||||||||||
| Denominator: | ||||||||||||||||||||||||||||||||||||||
| Common Shares Issued and Outstanding | 58.922 | 58.821 | 58.667 | 60.202 | 63.576 | 63.979 | ||||||||||||||||||||||||||||||||
| Book Value Per Share: | ||||||||||||||||||||||||||||||||||||||
| Book Value Per Share | $ | 37.22 | $ | 45.05 | $ | 45.71 | $ | 45.38 | $ | 46.45 | $ | 45.60 | ||||||||||||||||||||||||||
Less: Net Unrealized Losses on Fixed Maturities | 10.13 | 10.82 | 9.65 | 9.19 | 10.04 | 9.98 | ||||||||||||||||||||||||||||||||
| Less: Change in Discount Rate on Future Life Policyholder Benefits | (6.50) | (6.82) | (5.98) | (5.25) | (5.82) | (5.72) | ||||||||||||||||||||||||||||||||
| Less: Goodwill | (13.30) | (21.26) | (21.32) | (20.77) | (19.66) | (19.55) | ||||||||||||||||||||||||||||||||
| Adjusted Book Value Per Share | $ | 27.55 | $ | 27.79 | $ | 28.06 | $ | 28.55 | $ | 31.01 | $ | 30.31 | ||||||||||||||||||||||||||
30
Earnings Call Presentation – 2Q 2026 Second Quarter 2026 Earnings
Earnings Call Presentation – 2Q 2026 Preliminary Matters 2 Cautionary Statements Regarding Forward-Looking Information This presentation may contain or incorporate by reference information that includes or is based on forward-looking statements within the meaning of the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995. We caution investors that these forward-looking statements are not guarantees of future performance and actual results may differ materially. Such statements involve known and unknown risks, uncertainties, and other factors, including but not limited to: 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. • changes in the frequency and severity of insurance claims • claim development and the process of estimating claim reserves • the impacts of inflation • changes in interest rate environment • supply chain disruption • product demand and pricing • effects of legislative, governmental and regulatory actions • heightened competition • litigation outcomes and trends • investment risks • cybersecurity risks or incidents • impact of catastrophes • other risks and uncertainties detailed in Kemper’s Annual Report on Form 10-K and subsequent filings with the Securities and Exchange Commission (“SEC”) Kemper assumes no obligation to publicly correct or update any forward-looking statements as a result of events or developments subsequent to the date of this presentation.
Earnings Call Presentation – 2Q 2026 Leading Insurer Empowering Specialty Markets 3 Auto insurance for specialty markets, including Latino, Hispanic and urban areas Life insurance and supplemental accident and health insurance products for low/moderate income customers Specialty Property & Casualty Insurance Segment • Targets demographics and markets with unmet needs • Focused on specialized markets where deep customer insight enables differentiated underwriting and service • Personal and Commercial Lines product offerings across geographies • Disciplined underwriting and pricing tailored to unique customer and risk profiles • Broad independent agent and broker distribution Life Insurance Segment • Focused on demographics and income segments with unmet protection needs • Specializes in niches where proprietary insights inform product structure and customer experience • Provides simple life and supplemental protection products enabled by underwriting and customer perspectives • Distributed through a dedicated career agency model with high-touch customer engagement Providing affordable, easy-to-use personalized solutions to individuals, families and businesses
Earnings Call Presentation – 2Q 2026 1 5 3 2 4 Key Takeaways for the Quarter 4 Underlying operating results improved sequentially; reported GAAP results impacted by non-cash goodwill impairment and valuation allowance Personal Auto Combined Ratio improved, driven by underwriting actions and expenses Commercial Auto continued to deliver solid growth; profitability impacted by adverse prior-year reserve development Life continued to generate stable profitability Implemented actions to strengthen leadership, accountability, and organizational alignment
Earnings Call Presentation – 2Q 2026 Second Quarter 2026 Financial Summary 5 Underlying operating results improved sequentially; reported GAAP results impacted by non-cash goodwill impairment and valuation allowance • Net Loss attributable to Kemper Corporation of $(464.8) million or $(7.90) per share • Adjusted Consolidated Net Operating Income1 of $26.3 million or $0.45 per share • Trailing twelve-month Operating Cash Flow of $434 million • Net Investment Income of $105 million Financial Results Specialty Auto performance benefitted from underwriting actions and expense initiatives • Combined Ratio of 104.0%; ULCR1 of 102.3% • PIF declined 5.2% QoQ Personal Auto Combined Ratio improved, driven by underwriting actions and expenses • Combined Ratio of 105.0%; ULCR1 of 105.5% • PIF declined 6.5% QoQ Commercial Auto continued to deliver solid growth; profitability impacted by adverse prior- year reserve development • Combined Ratio of 101.2%; ULCR1 of 93.7% • PIF increased 2.6% QoQ Life continued to generate stable profitability • Produced $18 million of Net Operating Income Business Performance 1 Non-GAAP financial measure; please see reconciliation in appendix on pages 17-23
Earnings Call Presentation – 2Q 2026 2Q’26 Sources of Volatility Reported GAAP results primarily impacted by goodwill impairment 6 2Q’26 ($ in millions, except per share amounts) $ Per Share Net Loss attributable to Kemper Corporation $(464.8) $(7.90) Goodwill Impairment 460.0 7.82 Investment-Related Items1 19.7 0.34 Acquisition and Disposition Related Transaction, Integration, Restructuring and Other Costs 11.6 0.19 Non-Core Operations (0.2) - Adjusted Consolidated Net Operating Income2 $26.3 $0.45 Recent operational challenges and subsequent decline in Kemper's share price triggered a quantitative goodwill impairment evaluation, resulting in a $460 million goodwill impairment • Impairment has no impact on statutory capital, holding company liquidity, or compliance with debt covenants. Includes after-tax valuation allowance for credit loss of $16.6 million related to surplus notes issued by Reciprocal Exchange 1 2 2 1 1 Includes Change in Fair Value of Equity and Convertible Securities, Net Realized Investment Gains (Losses) and Impairment Losses 2 Non-GAAP financial measure; see reconciliation on pages 17-23
Earnings Call Presentation – 2Q 2026 Well-Capitalized Insurance Subsidiaries Balance sheet continues to provide financial flexibility to support core businesses 7 1 2Q’26 Risk-Based Capital Ratios shown are estimates calculated at the Company Action Level from aggregate financials of all separate insurance companies within each segment. NAIC annually reported entity-level RBCs will differ | 2 Excludes business ceded to Kemper Bermuda Ltd. (KBL) | 3 Excludes AACC and Reciprocal | 4 Excludes AOCI 24.1% 30.3% 32.6% 31.0% 24.6% 28.3% 2021 2022 2023 2024 2025 2Q'26 DEBT-TO-CAPITAL4 PARENT COMPANY LIQUIDITY ($M) RISK-BASED CAPITAL RATIOS (%)¹ $704 $918 $683 $800 $886 $636 $234 $418 $465 $548 $145 $130 $938 $1,336 $1,148 $1,348 $1,031 $766 2021 2022 2023 2024 2025 2Q'26 Debt CASH FLOW FROM OPERATING ACTIVITIES ($M) $351 $(210) $(134) $383 $585 $434 2021 2022 2023 2024 2025 2Q'26 TTM HoldCo Cash & Investments Borrowings Available Under Credit Agreement & from Subs P&C3 Life2 355 645 465 525 515 585 220 240 275 305 230 225 2021 2022 2023 2024 2025 2Q'26 Returned $752M of capital Retired $450M of Debt GW Impairment of $460M
Earnings Call Presentation – 2Q 2026 Diversified Investment Portfolio with Consistent Returns 8 1 Non-Core Operations reflects $2 million related to Preferred P&C for each period presented 2 Other category includes Equity Securities, which excludes $222 million of Other Equity Interests of LPs/LLCs that have been reclassified into Alternative Investments; COLI represents Company Owned Life Insurance 4.3% 4.4% 4.5% 4.4% 4.4% (0.1)% 0.2% 0.1% 0.3% 0.2% 4.2% 4.6% 4.6% 4.7% 4.6% 2Q'25 3Q'25 4Q'25 1Q'26 2Q'26 Core Portfolio Alt. Inv. Portfolio (ex. Solar) 56% 14% 8% 7% 5% 7% 3% Other States/ Munis COLI 70% 24% 6% Fixed Maturity Ratings A or Higher B / BB BBB • High-quality portfolio provides consistent net investment income; approximately 70% of fixed income portfolio rated A or higher • 4.6% pre-tax equivalent (PTE) annualized book yield on core portfolio • Average investment grade new money yields approximately 5.5% for the quarter $98 $101 $101 $99 $100 $(2) $4 $2 $8 $5 $96 $105 $103 $107 $105 2Q'25 3Q'25 4Q'25 1Q'26 2Q'26 Core Portfolio Alternative Inv. Portfolio Corporates Alternatives U.S Gov’t Portfolio Composition2 Short Term $8.6 Billion $6.7 Billion NET INVESTMENT INCOME ($M)1 HIGHLIGHTS DIVERSIFIED AND HIGHLY-RATED PORTFOLIO PTE ANNUALIZED BOOK YIELD CONTRIBUTION
Earnings Call Presentation – 2Q 2026 Specialty Property & Casualty Insurance Segment Restoring target profitability while improving geographic and product diversification 9 1 Non-GAAP financial measure; see reconciliation in appendix on pages 17-23 2 Excluding Classic Car 3 Adjusted for $35, $28, and $2 million reduction to earned premium in 4Q’25, 1Q’26, and 2Q’26, respectively, for estimated FL Statutory Profit Limit Refunds 3 • Implementing rate and non-rate actions to strengthen underwriting performance • Underlying combined ratio improved sequentially, primarily driven by expenses – Normalized ULCR3 of 102.0% vs. 102.8% in 1Q’26 – Normalized expense ratio3 of 20.5% vs. 21.5% in 1Q’26 • Reduced new business writings to support profit restoration and improve geographic diversification COMMENTARY PRODUCTION AND PIF2 METRICS ($M) 2Q’26 2Q’25 VARIANCE Earned Premiums $897 $1,011 (11.3)% Underlying Loss & LAE Ratio1 81.7% 72.3% 9.4 pts Expense Ratio 20.6% 21.3% (0.7) pts Policies In-Force (000s) 1,098 1,295 (15.2)% 93.6 99.6 105.0 106.2 102.3 101.2 102.8 102.0 2Q'25 3Q'25 4Q'25 1Q'26 2Q'26 3 3 3 UNDERLYING COMBINED RATIO1 (%) 2Q’26 TTM % of PIF Growth DWP DWP YoY QoQ Personal Auto3 $2,651 71.8% (18.5)% (6.5)% CV 1,039 28.2 9.2 2.6 Total KA $3,690 100.0% (15.2)% (5.2)%
Earnings Call Presentation – 2Q 2026 Specialty Property & Casualty Insurance – Personal Auto Actions are stabilizing loss ratio performance while reducing concentration risk 10 3 • Continuing to focus on reducing geographic concentration and expanding in targeted markets • Underlying combined ratio improved sequentially, primarily driven by improved underwriting performance and expenses – Normalized ULCR3 of 105.2% vs. 106.5% in 1Q’26 COMMENTARY PRODUCTION AND PIF2 METRICS ($M) 2Q’26 2Q’25 VARIANCE Earned Premiums $647 $789 (18.0)% Underlying Loss & LAE Ratio1 83.8% 72.5% 11.3 pts Expense Ratio 21.7% 22.0% (0.3) pts Policies In-Force (000s) 928 1,139 (18.5)% 94.5 102.1 110.0 111.0 105.5 104.8 106.5 105.2 2Q'25 3Q'25 4Q'25 1Q'26 2Q'26 3 3 3 UNDERLYING COMBINED RATIO1 (%) 2Q’26 TTM % of PIF Growth DWP DWP YoY QoQ Personal Auto California $1,816 68.5% (23.1)% (10.0)% Florida3/Texas 623 23.5 6.0 7.0 Other 212 8.0 (33.1) (13.2) Total PPA $2,651 100.0% (18.5)% (6.5)% 1 Non-GAAP financial measure; see reconciliation in appendix on pages 17-23 2 Excluding Classic Car 3 Adjusted for $35, $28, and $2 million reduction to earned premium in 4Q’25, 1Q’26, and 2Q’26, respectively, for estimated FL Statutory Profit Limit Refunds
Earnings Call Presentation – 2Q 2026 • 26% of PPA PIF in 2Q’26; 23% in 1Q’26 – Geographic diversification gaining momentum – PIF increased 7.0% sequentially • Represented 66% of PPA NB DWP, up from 52% in 1Q’26 • ULCR2 of 95.5% remained within target range • New Personal Auto product live in both states • 64% of PPA PIF in 2Q’26; 67% in 1Q’26 – Focused on restoring profitability over growth – PIF decreased 10.0% sequentially • Represented 21% of PPA NB DWP, down from 34% in 1Q’26 • ULCR2 of 107.3%, down 1.9% sequentially • Rate increases effective in 2Q’26 began earning into results – Filed for additional rate increase of 6.9% Specialty Property & Casualty Insurance – PPA Key State Metrics Geographic diversification expected to reduce earnings volatility over time 11 CALIFORNIA FLORIDA + TEXAS 1 Adjusted for $28 and $2 million reduction to earned premium in 1Q’26 and 2Q’26, respectively, for estimated FL Statutory Profit Limit Refunds 2 Non-GAAP financial measure; see reconciliation in appendix on pages 17-23 METRICS ($M) 2Q’26 1Q’26 VARIANCE Earned Premiums $442 $467 (5.4)% Underlying Loss & LAE Ratio2 86.4% 87.4% (1.0) pts Underlying Combined Ratio2 107.3% 109.2% (1.9) pts Policies In-Force (000s) 596 662 (10.0)% % of PPA PIF 64.2% 66.7% (2.5) pts METRICS ($M) 2Q’26 1Q’26 VARIANCE Earned Premiums1 $155 $151 2.6% Underlying Loss & LAE Ratio1,2 73.0% 71.2% 1.8 pts Underlying Combined Ratio1,2 95.5% 93.7% 1.8 pts Policies In-Force (000s) 239 224 7.0% % of PPA PIF 25.8% 22.5% 3.3 pts
Earnings Call Presentation – 2Q 2026 Specialty Property & Casualty Insurance – Commercial Auto Delivered solid growth; profitability impacted by adverse prior-year reserve development 12 • Produced solid underlying performance and growth – Underlying Combined Ratio1 of 93.7%; PIF increased 9.2% YoY and 2.6% QoQ – Combined Ratio of 101.2% included $17.7 million of non-CAT adverse prior-year development • Taking rate and non-rate actions to ensure profitable growth – Rate increase of 6.9% in CA, effective in July 1 Non-GAAP financial measure; see reconciliation in appendix on pages 17-23 METRICS ($M) 2Q’26 2Q’25 VARIANCE Earned Premiums $249 $222 12.2% Underlying Loss & LAE Ratio1 76.1% 71.5% 4.6 pts Expense Ratio 17.6% 18.6% (1.0) pts Policies In-Force (000s) 170 156 9.2% 3 90.1 91.1 90.3 92.4 93.7 2Q'25 3Q'25 4Q'25 1Q'26 2Q'26 UNDERLYING COMBINED RATIO1 (%) COMMENTARY
Earnings Call Presentation – 2Q 2026 Life Insurance Segment Produced strong Net Operating Income with emerging premium growth 13 $100 $100 $100 $101 $103 $45 $48 $47 $49 $49 $145 $148 $147 $150 $152 2Q'25 3Q'25 4Q'25 1Q'26 2Q'26 Earned Premiums Net Investment Income METRICS ($M, except per policy) 2Q’26 2Q’25 VARIANCE Adjusted Net Operating Income $18 $13 38.5% Face Value of In-Force $19,743 $19,777 (0.2)% Avg. Face Value per Policy $6,648 $6,519 2.0% Avg. Premium per Policy Issued1 $708 $672 5.4% • Net Operating Income increased, driven by higher net investment income and earned premiums • Mortality and lapse experience remained modestly favorable to expectations • Strategic actions across pricing, underwriting, and distribution are supporting profitable new business growth and improved persistency 1 Annual basis 2 Normalized for annual assumption update for Deferred Profit Liability (4Q'25: -$6 million) NORMALIZED REVENUES2 ($M) COMMENTARY
Earnings Call Presentation – 2Q 2026 Improving Execution and Operating Efficiency Identifying and executing on savings opportunities 14 3Q’25 – 2Q’26 $80M+ in run-rate savings realized • Implemented restructuring actions to simplify operations and reduce costs • Focused on creating efficiencies in organizational design and process improvements • Improving claims management processes, with focus on third-party liability management Medium Term <20% expense ratio target • Working to identify, evaluate and execute additional actions to improve cost structure and processes • Opportunities include further efficiencies in organizational structure, claims management and operational processes • Initiative expected to improve both the expense ratio and the Loss and LAE ratio Total of $80M+ of annualized run-rate savings delivered since inception of program
Earnings Call Presentation – 2Q 2026 Appendix 15
Earnings Call Presentation – 2Q 2026 2026 Reinsurance Program Catastrophe XoL Reinsurance 16 New policy effective January 1, 2026: ̶ New limit aligned with risk-appetite ̶ New structure improves overall cost of capital HIGHLIGHTS Catastrophe Excess of Loss Program (XOL): • One year program consists of two layers: – $50 million excess $50 million – $60 million excess $100 million – 5% co-participation of both layers • 2026 purchase limit reflects exposure changes largely due to Preferred P&C exit 100% Retention of first $50M 1-Year Term Placed 1/1/26 $50M xs $50M 95% Placed 1-Year Term Placed 1/1/26 $60M xs $100M 95% Placed Layer 1 : 5 % co - p articip atio n Laye r 2 : 5 % co - p articip atio n CATASTROPHE REINSURANCE PROGRAM
Earnings Call Presentation – 2Q 2026 Non-GAAP Financial Measures 17 Adjusted Consolidated Net Operating Income is an after-tax, non-GAAP financial measure and is computed by excluding from Net (Loss) Income attributable to Kemper Corporation the after-tax impact of: (i) Change in Fair Value of Equity and Convertible Securities; (ii) Net Realized Investment Gains (Losses); (iii) Impairment Losses; (iv) Acquisition and Disposition Related Transaction, Integration, Restructuring and Other Costs; (v) Debt Extinguishment and Other Charges; (vi) Goodwill Impairment; (vii) Non-Core Operations; and (viii) Significant non-recurring or infrequent items that may not be indicative of ongoing operations. Significant non-recurring items are excluded when (a) the nature of the charge or gain is such that it is reasonably unlikely to recur within two years, and (b) there has been no similar charge or gain within the prior two years. The most directly comparable GAAP financial measure is Net (Loss) Income attributable to Kemper Corporation. There were no applicable significant non-recurring items that the Company excluded from the calculation of Adjusted Consolidated Net Operating Income for the three months ended June 30, 2026 or 2025. 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. Change in Fair Value of Equity and Convertible Securities, Net Realized Investment Gains (Losses) and Impairment Losses related to investments included in the Company's results may vary significantly between periods and are generally driven by business decisions and external economic developments such as capital market conditions that impact the values of the Company's investments, the timing of which is unrelated to the insurance underwriting process. Acquisition and Disposition Related Transaction, Integration, Restructuring and Other Costs may vary significantly between periods and are generally driven by the timing of business decisions which are unrelated to the insurance underwriting process. In the second quarter of 2026, the Company completed the sale of Newins and recorded a gain in connection with the transaction. In the third quarter of 2025, a restructuring program was launched to achieve operational and organizational efficiencies. The Company will continue to evaluate additional efficiency opportunities through 2027. Debt Extinguishment 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; and (ii) other charges that are non-standard, not part of the ordinary course of business, and unrelated to the insurance underwriting process. Goodwill Impairment is excluded because it is an infrequent and non- recurring charge. Non-Core Operations includes the results of our Preferred Insurance business which we expect to fully exit. These results are excluded because they are irrelevant to our ongoing operations and do not qualify for Discontinued Operations under GAAP. Significant non-recurring items are excluded because, by their nature, they are not indicative of the Company's business or economic trends. The preceding non-GAAP financial measures should not be considered a substitute for the comparable GAAP financial measures, as they do not fully recognize the profitability of the Company's businesses. Adjusted Consolidated Net Operating Income 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 (Loss) Income attributable to Kemper Corporation Per Unrestricted Share - basic. The Company believes that Adjusted Consolidated Net Operating Income Per Unrestricted Share provides investors with a valuable measure of its ongoing performance because it reveals underlying operational performance trends that otherwise might be less apparent if the items were not excluded. Income from Change in Fair Value of Equity and Convertible Securities, Net Realized Investment Gains (Losses), Impairment Losses, Acquisition and Disposition Related Transaction, Integration, Restructuring and Other Costs, Debt Extinguishment and Other Charges, and Goodwill Impairment included in the Company’s results may vary significantly between periods and are generally driven by business decisions and external economic developments such as capital market conditions that impact the values of the company’s investments, the timing of which is unrelated to the insurance underwriting process.
Earnings Call Presentation – 2Q 2026 Non-GAAP Financial Measures 18 Return on Adjusted Shareholders’ Equity is a calculation that uses a non-GAAP financial measure. It is calculated by dividing the period’s annualized Net (Loss) Income attributable to Kemper Corporation, excluding the annualization of the after-tax goodwill impairment and the credit loss allowance recognized on the Reciprocal Exchange surplus notes, by the average shareholders’ equity excluding net unrealized gains and losses on fixed maturities, the change in discount rate on future life policyholder benefits and goodwill. Return on Shareholders’ Equity is the most directly comparable GAAP measure. We use this non-GAAP measure to identify and analyze the change in performance attributable to management efforts between periods. The Company believes this non-GAAP financial measure is useful to investors because it eliminates the effect of items that can fluctuate significantly from period to period and are generally driven by economic developments, primarily capital market conditions, the magnitude and timing of which are not influenced by management. The Company believes it enhances understanding and comparability of performance by highlighting underlying business activity and profitability drivers. Adjusted Book Value Per Share is a calculation that uses a non-GAAP financial measure. It is calculated by dividing shareholders’ equity after excluding the after-tax impact of net unrealized gains and losses on fixed income securities, the change in discount rate on future life policyholder benefits and goodwill by total Common Shares Issued and Outstanding. Book value per share is the most directly comparable GAAP financial measure. The Company uses the trends in book value per share excluding the after-tax impact of net unrealized gains and losses on fixed income securities, the change in discount rate on future life policyholder benefits and goodwill in conjunction with book value per share to identify and analyze the change in net worth excluding goodwill attributable to management efforts between periods. The Company believes the non-GAAP financial measure is useful to investors because it eliminates the effect of items that can fluctuate significantly from period to period and are generally driven by economic developments, primarily capital market conditions, the magnitude and timing of which are not influenced by management. The Company believes it enhances understanding and comparability of performance by highlighting underlying business activity and profitability drivers. Underlying Combined Ratio is a non-GAAP financial measure. It is computed by adding the Current Year Non-catastrophe Losses and LAE Ratio with the Insurance Expense Ratio. The most directly comparable GAAP financial measure is the Combined Ratio, which is computed by adding Total Incurred Losses and LAE Ratio, including the impact of catastrophe losses and loss and LAE reserve development from prior years, with the Insurance Expense Ratio. The Company believes Underlying Losses and LAE and the Underlying Combined Ratio are useful to investors and uses these financial measures to reveal the trends in the Company’s Property & Casualty Insurance segment that may be obscured by catastrophe losses and prior-year reserve development. These catastrophe losses may cause the Company’s loss trends to vary significantly between periods as a result of their incidence of occurrence and magnitude and can have a significant impact on incurred losses and LAE and the Combined Ratio. Prior-year reserve developments are caused by unexpected loss development on historical reserves. Because reserve development relates to the re-estimation of losses from earlier periods, it has no bearing on the performance of the Company’s insurance products in the current period. The Company believes it is useful for investors to evaluate these components separately and in the aggregate when reviewing the Company’s underwriting performance.
Earnings Call Presentation – 2Q 2026 Non-GAAP Financial Measures Adjusted Consolidated Net Operating Income attributable to Kemper Corporation 19 Three Months Ended ($ per share) Jun 30, 2026 Jun 30, 2025 Net (Loss) Income attributable to Kemper Corporation Per Unrestricted Share $(7.90) $1.13 Less Net (Loss) Income Per Unrestricted Share From: Change in Fair Value of Equity and Convertible Securities (0.02) - Net Realized Investment Gains - - Impairment Losses (0.32) (0.04) Acquisition and Disposition Related Transaction, Integration, Restructuring and Other Costs (0.19) (0.07) Goodwill Impairment (7.82) - Non-Core Operations - (0.07) Adjusted Consolidated Net Operating Income Per Unrestricted Share $0.45 $1.31 Three Months Ended ($ in millions) Jun 30, 2026 Jun 30, 2025 Net (Loss) Income attributable to Kemper Corporation $(464.8) $72.6 Less Net (Loss) Income From: Change in Fair Value of Equity and Convertible Securities (1.4) (0.4) Net Realized Investment Gains (Losses) 0.5 (0.1) Impairment Losses (18.8) (2.8) Acquisition and Disposition Related Transaction, Integration, Restructuring and Other Costs (11.6) (3.8) Goodwill Impairment (460.0) - Non-Core Operations 0.2 (4.4) Adjusted Consolidated Net Operating Income $26.3 $84.1
Earnings Call Presentation – 2Q 2026 Non-GAAP Financial Measures Return on Adjusted Shareholders’ Equity 20 1 Excludes the annualization of the $460.0 million after-tax goodwill impairment and the $16.6 million after-tax credit loss allowance ($21.0 million pre-tax) recognized on the Reciprocal Exchange surplus notes for the three months ended June 30, 2026. 2 Average shareholders' equity and average adjusted shareholders’ equity for the three months ended is the simple average of the beginning and ending balances for the period. Average shareholders’ equity and average Adjusted shareholders’ equity on a year-to-date basis is the (a) the sum of the balance at the beginning of the year and the ending balance for each quarter within that year divided by (b) the number of quarters in the period presented plus one. Three Months Ended ($ in millions) Jun 30, 2026 Jun 30, 2025 Annualized Net (Loss) Income attributable to Kemper Corporation1 $(429.4) $290.4 Average Shareholders’ Equity2 $2,421.2 $2,935.5 Less: Average Net Unrealized Losses on Fixed Maturities 616.6 638.6 Less: Average Change in Discount Rate on Future Life Policyholder Benefits (391.9) (368.0) Less: Average Goodwill (1,017.1) (1,250.7) Average Adjusted Shareholders’ Equity2 $1,628.8 $1,955.4 Return on Shareholders’ Equity (17.7)% 9.9% Return on Adjusted Shareholders’ Equity (26.4)% 14.9%
Earnings Call Presentation – 2Q 2026 Non-GAAP Financial Measures Adjusted Book Value Per Share 21 As of ($ and shares in millions except per share amounts) Jun 30, 2026 Jun 30, 2025 Kemper Corporation Shareholders’ Equity $2,192.8 $2,953.4 Less: Net Unrealized Losses on Fixed Maturities 596.5 638.6 Less: Change in Discount Rate on Future Life Policyholder Benefits (382.7) (370.0) Less: Goodwill (783.5) (1,250.7) Adjusted Shareholders’ Equity $1,623.1 $1,971.3 Common Shares Issued and Outstanding 58.922 63.576 Book Value Per Share $37.22 $46.45 Less: Net Unrealized Losses on Fixed Maturities 10.13 10.04 Less: Change in Discount Rate on Future Life Policyholder Benefits (6.50) (5.82) Less: Goodwill (13.30) (19.66) Adjusted Book Value Per Share $27.55 $31.01
Earnings Call Presentation – 2Q 2026 Non-GAAP Financial Measures Underlying Combined Ratio 22 Three Months Ended 2Q’26 1Q’26 4Q’25 3Q’25 2Q’25 Specialty P&C Insurance Combined Ratio as Reported 104.0% 106.7% 106.0% 104.8% 95.4% Current Year Catastrophe Losses and LAE Ratio (0.7) (0.1) (0.1) (0.1) (0.5) Prior Years Non-Catastrophe Losses and LAE Ratio (1.0) (0.4) (1.0) (5.1) (1.3) Prior Years Catastrophe Losses and LAE Ratio - - 0.1 - - Underlying Combined Ratio 102.3% 106.2% 105.0% 99.6% 93.6% Personal Auto Insurance Combined Ratio as Reported 105.0% 110.9% 110.1% 103.2% 94.4% Current Year Catastrophe Losses and LAE Ratio (0.8) (0.2) (0.2) (0.1) (0.5) Prior Years Non-Catastrophe Losses and LAE Ratio 1.3 0.4 - (1.0) 0.6 Prior Years Catastrophe Losses and LAE Ratio - (0.1) 0.1 - - Underlying Combined Ratio 105.5% 111.0% 110.0% 102.1% 94.5% Commercial Auto Insurance Combined Ratio as Reported 101.2% 95.1% 94.2% 110.0% 99.0% Current Year Catastrophe Losses and LAE Ratio (0.4) (0.1) (0.1) (0.2) (0.5) Prior Years Non-Catastrophe Losses and LAE Ratio (7.1) (2.6) (3.8) (18.7) (8.4) Prior Years Catastrophe Losses and LAE Ratio - - - - - Underlying Combined Ratio 93.7% 92.4% 90.3% 91.1% 90.1%
Earnings Call Presentation – 2Q 2026 Non-GAAP Financial Measures Underlying Combined Ratio 23 Three Months Ended 2Q’26 1Q’26 Specialty P&C Insurance – California PPA Combined Ratio 108.1% 110.6% Current Year Catastrophe Losses and LAE Ratio - (0.1) Prior Years Non-Catastrophe Losses and LAE Ratio (0.8) (1.2) Prior Years Catastrophe Losses and LAE Ratio - (0.1) Underlying Combined Ratio 107.3% 109.2% Specialty P&C Insurance – Florida1/Texas PPA Combined Ratio 94.3% 88.6% Current Year Catastrophe Losses and LAE Ratio (3.2) (0.3) Prior Years Non-Catastrophe Losses and LAE Ratio 4.4 5.4 Prior Years Catastrophe Losses and LAE Ratio - - Underlying Combined Ratio 95.5% 93.7% 1 Adjusted for $28 and $2 million reduction to earned premium in 1Q’26 and 2Q’26, respectively, for estimated FL Statutory Profit Limit Refunds