8-K - KMPR - Equibles

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): May 7, 2020

Kemper Corporation

(Exact name of registrant as specified in its charter)

Commission File Number: 001-18298

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

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

(Address of principal executive offices, including zip code)

312-661-4600

(Registrant’s telephone number, including area code)

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

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

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

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

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

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

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

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

the Exchange Act. ¨

Section 2. – Financial Information

Item 2.02.	Results of Operations and Financial Condition.

On May 7, 2020, Kemper Corporation ("Kemper" or the "Registrant") issued a press release announcing its financial results for the first quarter of 2020 and the availability of Kemper’s first quarter investor supplement and earnings call presentation on its website, kemper.com. The press release, the investor supplement and the earnings call presentation are furnished as Exhibits 99.1, 99.2 and 99.3, respectively, to this report.

Section 9. – Financial Statements and Exhibits.

Item 9.01.	Financial Statements and Exhibits.

(d) Exhibits

99.1 Registrant’s press release dated May 7, 2020.

99.2 First Quarter 2020 Investor Supplement of Kemper Corporation.

99.3 First Quarter 2020 Earnings Call Presentation.

SIGNATURES

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

		Kemper Corporation
Date:	May 7, 2020	/S/ JAMES J. MCKINNEY
		James J. McKinney
		Executive Vice President and Chief Financial Officer (principal financial officer)

		Exhibit

Exhibit 99.1

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

Kemper Reports Strong First Quarter 2020 Operating Results

CHICAGO, May 7, 2020 — Kemper Corporation (NYSE: KMPR) reported net income of $64.0 million, or $0.95 per diluted share, for the first quarter of 2020, compared to $155.3 million, or $2.35 per diluted share, for the first quarter of 2019. In the first quarter of 2020, net income included a $93.1 million after-tax loss, or $1.39 per diluted share, attributable to the change in fair value of equity and convertible securities. As adjusted for the acquisition of Infinity Property and Casualty Corporation (“as adjusted”)^1^, net income was $68.4 million, or $1.02 per diluted share, for the first quarter of 2020, compared to $153.2 million, or $2.32 per diluted share, for the first quarter of 2019.

Adjusted consolidated net operating income^1^ was $162.9 million, or $2.43 per diluted share, for the first quarter of 2020, compared to $98.9 million, or $1.50 per diluted share, for the first quarter of 2019. These results increased primarily from other income from the satisfaction of the remaining balance due on the judgment against Computer Sciences Corporation (“CSC”).

Highlights of the quarter include:

◦	Consolidated earned premiums increased by 9 percent, or $91.6 million in the quarter
◦	Specialty Property & Casualty Insurance segment’s earned premiums increased by 13 percent, or $93.2 million in the quarter
---	---

“The entire Kemper family offers our thoughts and compassion for the individuals and families that have been impacted by the COVID-19 pandemic," said Joseph P. Lacher, Jr., President and CEO. “We all see the terrible statistics and must not forget that those numbers represent people who are suffering. This crisis deserves everyone’s attention, and we all have a responsibility to do our part. Our priority continues to be the health and safety of our customers, employees and partners. We acted quickly and transitioned nearly 95 percent of our employees to remote working. We announced premium credit relief for our auto policyholders, and we’re extending grace periods for those experiencing financial strain. To support the urgent needs of community organizations focused on food insecurity and supporting front-line medical personnel, we’ve pledged $1 million. I’m extremely proud of the commitment our team has demonstrated to the well-being of our stakeholders.

“It’s important to remember, without a healthy business, these efforts would be challenged. The strength and performance of our business model positions us well to deliver on our promises to all our stakeholders during challenging times. This is evidenced by our first quarter performance, highlighted by a rolling 12-month ROATCE excluding unrealized gains on fixed maturities of 20 percent and solid top-line growth, with overall earned premiums increasing 9 percent and our specialty business growing 13 percent. The strength of our balance sheet is underscored by a low debt-to-capital ratio, no near-term debt maturities and significant committed contingent capital. Although it’s too early to determine the outcome of the crisis, Kemper will remain a source of strength and stability for our stakeholders in uncertain times, and we’ll continue to be there for our customers when they need us most.”

^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
(Dollars in Millions, Except Per Share Amounts) (Unaudited)	Mar 31, <br>2020			Mar 31, <br>2019
Net Income	$	64.0		$	155.3
Adjusted Consolidated Net Operating Income^1^	$	162.9		$	98.9
Impact of Catastrophe Losses and Related Loss Adjustment Expense (LAE) on Net Income	$	(4.6	)	$	(13.8	)
Diluted Net Income Per Share From:
Net Income	$	0.95		$	2.35
Adjusted Consolidated Net Operating Income^1^	$	2.43		$	1.50
Impact of Catastrophe Losses and Related LAE on Net Income Per Share	$	(0.07	)	$	(0.21	)

Capital

Total Shareholders’ Equity at the end of the quarter was $3,760.8 million, a decrease of $211.5 million, or 5 percent, since year-end 2019 primarily driven by unrealized losses on the fixed maturity portfolio. Kemper ended the quarter with cash and investments at the holding company of $199.1 million, and the $400 million revolving credit agreement was undrawn.

During the first quarter of 2020, Kemper paid dividends of $20.0 million and repurchased and retired 1.5 million shares of its common stock at an aggregate cost of $101.2 million.

Kemper ended the quarter with a book value per share of $57.54, a decrease of 3 percent from $59.59 at the end of 2019. Book value per share excluding net unrealized gains on fixed maturities^1^ was $53.53, up 1 percent from $53.08 at the end of 2019.

On February 5, 2020, Kemper announced that its Board of Directors declared an increase in the company’s common dividend per share to $0.30 per share, an increase in 7 percent, or 2 cents over the previous quarterly dividend.

On May 6, 2020, Kemper’s Board of Directors authorized the repurchase of an additional $200 million of Kemper’s common stock, in addition to $133 million remaining under the August 6, 2014 authorization, bringing the remaining share repurchase authorization to approximately $333 million as of May 6, 2020. The amount and timing of any future share repurchases under the authorization will depend on a variety of factors, including market conditions, the Company’s financial condition, results of operations, available liquidity, particular circumstances and other considerations.

Revenues

Total revenues for the first quarter of 2020 decreased $7.3 million, or 0.6 percent, to $1,229.0 million, compared to the first quarter of 2019, driven by a $182.2 million decrease attributable to the change in fair value of equity and convertible securities, offset by $93.2 million of higher Specialty P&C earned premiums and $88.4 million increase in Other Income. Specialty P&C earned premiums increased primarily from higher policies in force. Net investment income increased $2.9 million to $85.6 million in the first quarter of 2020 due primarily to the inclusion of income from company-owned life insurance investments. Net realized investment gains were $16.5 million in the first quarter of 2020, compared to $16.1 million last year. Other income increased from $1.9 million to $90.3 million in the first quarter of 2020 due primarily to satisfaction of the remaining balance due on the judgment against CSC.

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
(Dollars in Millions) (Unaudited)	Mar 31, <br>2020			Mar 31, <br>2019
Segment Net Operating Income:
Specialty Property & Casualty Insurance	60.1			79.6
Preferred Property & Casualty Insurance	18.4			2.8
Life & Health Insurance	22.3			23.1
Total Segment Net Operating Income	100.8			105.5
Corporate and Other Net Operating Income (Loss)	62.1			(6.6		)
Adjusted Consolidated Net Operating Income^1^	162.9			98.9
Net Income (Loss) From:
Change in Fair Value of Equity and Convertible Securities	(93.1		)	50.9
Net Realized Gains on Sales of Investments	13.0			12.7
Impairment Losses	(9.5		)	(2.8		)
Acquisition Related Transaction, Integration and Other Costs	(9.3		)	(4.4		)
Income from Continuing Operations	$	64.0		$	155.3

The Specialty Property & Casualty Insurance segment reported net operating income of $60.1 million for the first quarter of 2020, compared to $79.6 million in 2019. Results deteriorated primarily by a higher underlying losses and insurance expenses as a percentage of earned premiums in specialty personal automobile insurance and the impact of prior year reserve development. The segment’s underlying combined ratio^1^ was 93.9 percent, compared to 91.7 percent in the first quarter of 2019.

The Preferred Property & Casualty Insurance segment reported net operating income of $18.4 million for the first quarter of 2020, compared to $2.8 million in 2019. Improved results were primarily due to lower underlying losses and LAE as a percentage of earned premiums and lower incurred catastrophe losses and LAE, partially offset by higher insurance expenses as a percentage of earned premiums. The Preferred Property & Casualty Insurance segment’s underlying combined ratio^1^ improved 3.7 percent points to 92.3 percent in the first quarter of 2020 due primarily to lower incurred losses and LAE as a percentage of earned premiums in 2020, compared to 2019.

The Life & Health Insurance segment reported net operating income of $22.3 million for the first quarter of 2020, compared to $23.1 million in 2019. Results deteriorated primarily from pressure in global equity markets impacting net investment income and novel coronavirus COVID-19 related items, offset by a reduction of our estimate of the initial impact of using death verification databases.

Unaudited condensed consolidated statements of income for the three months ended March 31, 2020 and 2019 are presented below.		Three Months Ended
(Dollars in Millions, Except Per Share Amounts)	Mar 31, <br>2020			Mar 31, <br>2019
Revenues:
Earned Premiums	$	1,166.4		$	1,074.8
Net Investment Income	85.6			82.7
Other Income	90.3			1.9
Income (Loss) from Change in Fair Value of Equity and Convertible Securities	(117.8		)	64.4
Net Realized Gains on Sales of Investments	16.5			16.1
Impairment Losses	(12.0		)	(3.6		)
Total Revenues	1,229.0			1,236.3
Expenses:
Policyholders’ Benefits and Incurred Losses and Loss Adjustment Expenses	835.2			765.4
Insurance Expenses	271.6			234.8
Interest and Other Expenses	44.5			41.4
Total Expenses	1,151.3			1,041.6
Income from Continuing Operations before Income Taxes	77.7			194.7
Income Tax Expense	(13.7		)	(39.4		)
Net Income	$	64.0		$	155.3
Income from Continuing Operations Per Unrestricted Share:
Basic	$	0.96		$	2.38
Diluted	$	0.95		$	2.35
Net Income Per Unrestricted Share:
Basic	$	0.96		$	2.38
Diluted	$	0.95		$	2.35
Weighted-average Outstanding (Shares in Thousands):
Unrestricted Shares - Basic	66,515.9			64,815.0
Unrestricted Shares and Equivalent Shares - Diluted	66,974.2			65,606.0
Dividends Paid to Shareholders Per Share	$	0.30		$	0.25

Unaudited business segment revenues for the three months ended March 31, 2020 and 2019 are presented below.

	Three Months Ended
(Dollars in Millions)	Mar 31, <br>2020			Mar 31, <br>2019
REVENUES:
Specialty Property & Casualty Insurance:
Earned Premiums:
Specialty Automobile	$	753.2		$	669.6
Commercial Automobile	69.3			59.7
Total Earned Premiums	822.5			729.3
Net Investment Income	28.8			21.5
Other Income	0.9			0.8
Total Specialty Property & Casualty Insurance Revenues	852.2			751.6
Preferred Property & Casualty Insurance:
Earned Premiums:
Preferred Automobile	114.9			115.4
Homeowners	56.8			60.3
Other Personal	9.2			9.9
Total Earned Premiums	180.9			185.6
Net Investment Income	9.7			8.3
Total Preferred Property & Casualty Insurance Revenues	190.6			193.9
Life & Health Insurance:
Earned Premiums:
Life	97.2			95.8
Accident & Health	49.4			46.9
Property	16.4			17.2
Total Earned Premiums	163.0			159.9
Net Investment Income	51.0			51.7
Other Income	0.1			1.1
Total Life & Health Insurance Revenues	214.1			212.7
Total Segment Revenues	1,256.9			1,158.2
Income (Loss) from Change in Fair Value of Equity and Convertible Securities	(117.8		)	64.4
Net Realized Gains on Sales of Investments	16.5			16.1
Impairment Losses	(12.0		)	(3.6		)
Other	85.4			1.2
Total Revenues	$	1,229.0		$	1,236.3

KEMPER CORPORATION AND SUBSIDIARIES<br><br>CONDENSED CONSOLIDATED BALANCE SHEETS<br><br>(Dollars in Millions)<br><br>(Unaudited)
	Mar 31, <br>2020		Dec 31, <br>2019
Assets:
Investments:
Fixed Maturities at Fair Value	$	6,998.5	$	6,922.1
Equity Securities at Fair Value	709.8		907.3
Equity Securities at Modified Cost	44.8		41.9
Equity Method Limited Liability Investments at Cost Plus Cumulative Undistributed Earnings	226.3		220.4
Convertible Securities at Fair Value	32.8		37.3
Short-term Investments at Cost which Approximates Fair Value	166.7		470.9
Other Investments	760.2		661.5
Total Investments	8,939.1		9,261.4
Cash	301.3		136.8
Receivables from Policyholders	1,219.1		1,117.1
Other Receivables	207.8		219.7
Deferred Policy Acquisition Costs	551.5		537.7
Goodwill	1,114.0		1,114.0
Current Income Tax Assets	17.8		44.7
Other Assets	581.7		557.7
Total Assets	$	12,932.3	$	12,989.1
Liabilities and Shareholders’ Equity:
Insurance Reserves:
Life & Health	$	3,500.8	$	3,502.0
Property & Casualty	1,941.6		1,969.8
Total Insurance Reserves	5,442.4		5,471.8
Unearned Premiums	1,621.4		1,545.5
Policyholder Contract Liabilities	430.5		309.8
Deferred Income Tax Liabilities	116.0		178.2
Accrued Expenses and Other Liabilities	783.1		733.1
Debt at Amortized Cost	778.1		778.4
Total Liabilities	9,171.5		9,016.8
Shareholders’ Equity:
Common Stock	6.5		6.7
Paid-in Capital	1,788.2		1,819.2
Retained Earnings	1,791.2		1,810.3
Accumulated Other Comprehensive Income	174.9		336.1
Total Shareholders’ Equity	3,760.8		3,972.3
Total Liabilities and Shareholders’ Equity	$	12,932.3	$	12,989.1

Unaudited selected financial information for the Specialty Property & Casualty Insurance segment follows.		Three Months Ended
(Dollars in Millions)	Mar 31, <br>2020			Mar 31, <br>2019
Results of Operations
Net Premiums Written	$	911.2		$	809.1
Earned Premiums	$	822.5		$	729.3
Net Investment Income	28.8			21.5
Other Income	0.9			0.8
Total Revenues	852.2			751.6
Incurred Losses and LAE related to:
Current Year:
Non-catastrophe Losses and LAE	619.8			544.3
Catastrophe Losses and LAE	0.2			0.6
Prior Years:
Non-catastrophe Losses and LAE	5.3			(18.3		)
Catastrophe Losses and LAE	0.2			0.2
Total Incurred Losses and LAE	625.5			526.8
Insurance Expenses	152.1			124.8
Other Expenses	(0.4		)	0.6
Operating Income	75.0			99.4
Income Tax Benefit	(14.9		)	(19.8		)
Segment Net Operating Income	$	60.1		$	79.6
Ratios Based On Earned Premiums
Current Year Non-catastrophe Losses and LAE Ratio	75.4		%	74.6		%
Current Year Catastrophe Losses and LAE Ratio	—			0.1
Prior Years Non-catastrophe Losses and LAE Ratio	0.6			(2.5		)
Prior Years Catastrophe Losses and LAE Ratio	—			—
Total Incurred Loss and LAE Ratio	76.0			72.2
Insurance Expense Ratio	18.5			17.1
Combined Ratio	94.5		%	89.3		%
Underlying Combined Ratio^1^
Current Year Non-catastrophe Losses and LAE Ratio	75.4		%	74.6		%
Insurance Expense Ratio	18.5			17.1
Underlying Combined Ratio^1^	93.9		%	91.7		%
Non-GAAP Measure Reconciliation
Combined Ratio	94.5		%	89.3		%
Current Year Catastrophe Losses and LAE Ratio	—			0.1
Prior Years Non-catastrophe Losses and LAE Ratio	0.6			(2.5		)
Prior Years Catastrophe Losses and LAE Ratio	—			—
Underlying Combined Ratio^1^	93.9		%	91.7		%

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

	Three Months Ended
(Dollars in Millions)	Mar 31, <br>2020			Mar 31, <br>2019
Results of Operations
Net Premiums Written	$	164.1		$	179.6
Earned Premiums	$	180.9		$	185.6
Net Investment Income	9.7			8.3
Total Revenues	190.6			193.9
Incurred Losses and LAE related to:
Current Year:
Non-catastrophe Losses and LAE	108.5			120.8
Catastrophe Losses and LAE	4.8			16.6
Prior Years:
Non-catastrophe Losses and LAE	(3.3		)	(5.1		)
Catastrophe Losses and LAE	(1.1		)	1.0
Total Incurred Losses and LAE	108.9			133.3
Insurance Expenses	58.7			57.3
Operating Income	23.0			3.3
Income Tax Expense	(4.6		)	(0.5		)
Segment Net Operating Income	$	18.4		$	2.8
Ratios Based On Earned Premiums
Current Year Non-catastrophe Losses and LAE Ratio	59.9		%	65.1		%
Current Year Catastrophe Losses and LAE Ratio	2.7			8.9
Prior Years Non-catastrophe Losses and LAE Ratio	(1.8		)	(2.7		)
Prior Years Catastrophe Losses and LAE Ratio	(0.6		)	0.5
Total Incurred Loss and LAE Ratio	60.2			71.8
Insurance Expense Ratio	32.4			30.9
Combined Ratio	92.6		%	102.7		%
Underlying Combined Ratio^1^
Current Year Non-catastrophe Losses and LAE Ratio	59.9		%	65.1		%
Insurance Expense Ratio	32.4			30.9
Underlying Combined Ratio^1^	92.3		%	96.0		%
Non-GAAP Measure Reconciliation
Combined Ratio	92.6		%	102.7		%
Current Year Catastrophe Losses and LAE Ratio	2.7			8.9
Prior Years Non-catastrophe Losses and LAE Ratio	(1.8		)	(2.7		)
Prior Years Catastrophe Losses and LAE Ratio	(0.6		)	0.5
Underlying Combined Ratio^1^	92.3		%	96.0		%

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

	Three Months Ended
(Dollars in Millions)	Mar 31, <br>2020			Mar 31, <br>2019
Results of Operations
Earned Premiums	$	163.0		$	159.9
Net Investment Income	51.0			51.7
Other Income	0.1			1.1
Total Revenues	214.1			212.7
Policyholders’ Benefits and Incurred Losses and LAE	100.7			105.4
Insurance Expenses	86.9			78.0
Operating Profit	26.5			29.3
Income Tax Expense	(4.2		)	(6.2		)
Segment Net Operating Income	$	22.3		$	23.1

Use of Non-GAAP Financial Measures

Adjusted Consolidated Net Operating Income^1^

Adjusted Consolidated Net Operating Income^1^ is an after-tax, non-GAAP financial measure computed by excluding from Income from Continuing Operations the after-tax impact of 1) loss from change in fair value of equity and convertible securities, 2) net realized gains on sales of investments, 3) impairment losses related to investments, 4) acquisition related transaction, integration and other costs, 5) loss from early extinguishment of debt and 6) significant non-recurring or infrequent items that may not be indicative of ongoing operations. Significant non-recurring items are excluded when (a) the nature of the charge or gain is such that it is reasonably unlikely to recur within two years and (b) there has been no similar charge or gain within the prior two years. The most directly comparable GAAP financial measure is Income from Continuing Operations.

Kemper believes that Adjusted Consolidated Net Operating Income^1^ provides investors with a valuable measure of its ongoing performance because it reveals underlying operational performance trends that otherwise might be less apparent if the items were not excluded. Loss from Change in Fair Value of Equity and Convertible Securities, Net Realized Gains on Sales of Investments and Impairment Losses related to investments included in the Company’s results may vary significantly between periods and are generally driven by business decisions and external economic developments such as capital market conditions that impact the values of the Company’s investments, the timing of which is unrelated to the insurance underwriting process. Loss from Early Extinguishment of Debt is driven by the Company’s financing and refinancing decisions and capital needs, as well as external economic developments such as debt market conditions, the timing of which is unrelated to the insurance underwriting process. Acquisition Related Transaction, Integration and Other Costs may vary significantly between periods and are generally driven by the timing of acquisitions and business decisions which are unrelated to the insurance underwriting process. Significant non-recurring items are excluded because, by their nature, they are not indicative of the Company’s business or economic trends.

A reconciliation of Income from Continuing Operations to Adjusted Consolidated Net Operating Income^1^ for the three months ended March 31, 2020 and 2019 is presented below.

	Three Months Ended
(Dollars in Millions) (Unaudited)	Mar 31, <br>2020			Mar 31, <br>2019
Income from Continuing Operations	$	64.0		$	155.3
Less Net Income (Loss) From:
Change in Fair Value of Equity and Convertible Securities	(93.1		)	50.9
Net Realized Gains on Sales of Investments	13.0			12.7
Impairment Losses	(9.5		)	(2.8		)
Acquisition Related Transaction, Integration and Other Costs	(9.3		)	(4.4		)
Adjusted Consolidated Net Operating Income^1^	$	162.9		$	98.9

Diluted Adjusted Consolidated Net Operating Income Per Unrestricted Share^1^

Diluted Adjusted Consolidated Net Operating Income Per Unrestricted Share^1^ is a non-GAAP financial measure computed by dividing Adjusted Consolidated Net Operating Income^1^ attributed to unrestricted shares by the weighted-average unrestricted shares and equivalent shares outstanding. The most directly comparable GAAP financial measure is Diluted Income from Continuing Operations Per Unrestricted Share.

A reconciliation of Diluted Income from Continuing Operations Per Unrestricted Share to Diluted Adjusted Consolidated Net Operating Income Per Unrestricted Share^1^ for the three months ended March 31, 2020 and 2019 is presented below.

	Three Months Ended
(Unaudited)	Mar 31, <br>2020			Mar 31, <br>2019
Diluted Income from Continuing Operations Per Unrestricted Share	$	0.95		$	2.35
Less Net Income (Loss) Per Unrestricted Share From:
Change in Fair Value of Equity and Convertible Securities	(1.39		)	0.77
Net Realized Gains on Sales of Investments	0.19			0.19
Impairment Losses	(0.14		)	(0.04		)
Acquisition Related Transaction, Integration and Other Costs	(0.14		)	(0.07		)
Diluted Adjusted Consolidated Net Operating Income Per Unrestricted Share^1^	$	2.43		$	1.50

Book Value Per Share Excluding Net Unrealized Gains on Fixed Maturities^1^

Book Value Per Share Excluding Net Unrealized Gains on Fixed Maturities^1^ is a ratio that uses a non-GAAP financial measure. It is calculated by dividing shareholders’ equity after excluding the after-tax impact of net unrealized gains on fixed income securities by total Common Shares Issued and Outstanding. Book Value Per Share is the most directly comparable GAAP financial measure. Kemper uses the trends in book value per share, excluding the after-tax impact of net unrealized gains on fixed income securities, in conjunction with book value per share to identify and analyze the change in net worth attributable to management efforts between periods. Kemper believes the non-GAAP financial measure is useful to investors because it eliminates the effect of items that can fluctuate significantly from period to period and are generally driven by economic developments, primarily capital market conditions, the magnitude and timing of which are not influenced by management. Kemper believes it enhances understanding and comparability of performance by highlighting underlying business activity and profitability drivers.

A reconciliation of the numerator used in the computation of Book Value Per Share Excluding Net Unrealized Gains on Fixed Maturities^1^ and Book Value Per Share at March 31, 2020 and December 31, 2019 is presented below.	(Dollars in Millions) (Unaudited)	Mar 31, <br>2020		Dec 31, <br>2019
Shareholders’ Equity	$	3,760.8	$	3,972.3
Net Unrealized Gains on Fixed Maturities	261.6		434.0
Shareholders’ Equity Excluding Net Unrealized Gains on Fixed Maturities^1^	$	3,499.2	$	3,538.3

Underlying Combined Ratio^1^

Underlying Combined Ratio^1^ is a non-GAAP financial measure that is computed by adding the current year non-catastrophe losses and LAE ratio with the insurance expense ratio. The most directly comparable GAAP financial measure is the combined ratio, which is computed by adding total incurred losses and LAE, including the impact of catastrophe losses and loss and LAE reserve development from prior years, with the insurance expense ratio. Kemper believes the underlying combined ratio is useful to investors and is used by management to reveal the trends in Kemper’s property and casualty insurance businesses that may be obscured by catastrophe losses and prior-year reserve development. These catastrophe losses may cause loss trends to vary significantly between periods as a result of their incidence of occurrence and magnitude, and can have a significant impact on incurred losses and LAE and the combined ratio. Prior-year reserve development is caused by unexpected loss development on historical reserves. Because reserve development relates to the re-estimation of losses from earlier periods, it has no bearing on the performance of the company’s insurance products in the current period. Kemper believes it is useful for investors to evaluate these components separately and in the aggregate when reviewing its underwriting performance. The underlying combined ratio^1^ should not be considered a substitute for the combined ratio and does not reflect the overall underwriting profitability of our business.

As Adjusted for Acquisition^1^

As Adjusted for Acquisition^1^ amounts are non-GAAP financial measures. For three months ended March 31, 2020 and March 31, 2019, as adjusted amounts are computed by subtracting the impact of purchase accounting adjustments from the comparable consolidated GAAP financial measure reported by Kemper. The Company believes computing and presenting results on an adjusted basis are useful to investors and are used by management to provide meaningful and comparable year-over-year comparisons.

A reconciliation of the As Adjusted for Acquisition^1^ non-GAAP financial measures used in this press release to the comparable GAAP financial measure for the three months ended March 31, 2020 is presented below.

(Dollars in Millions, Except Per Share Amounts) (Unaudited)	Kemper Consolidated GAAP Financial Measure		Less Impact of Purchase Accounting Adjustments			As Adjusted for Acquisition^1^
Net Income	$	64.0	$	(4.4	)	$	68.4
Net Income Per Share - Diluted	$	0.95	$	(0.07	)	$	1.02
Specialty Property & Casualty Insurance Segment:
Segment Net Operating Income	$	60.1	$	(4.7	)	$	64.8

(Dollars in Millions) (Unaudited)	Kemper Consolidated GAAP Financial Measure		Less Impact of Purchase Accounting Adjustments		As Adjusted for Acquisition^1^
Net Income	$	155.3	$	2.1	$	153.2
Net Income Per Share - Diluted	$	2.35	$	0.03	$	2.32
Specialty Property & Casualty Insurance Segment:
Segment Net Operating Income	$	79.6	$	1.9	$	77.7

Conference Call

Kemper will discuss its first quarter 2020 results in a conference call on Thursday, May 7, at 5:00 p.m. Eastern (4:00 p.m. Central) Time. Kemper’s conference call will be accessible via the internet and by telephone. The phone number for Kemper’s conference call is 844.826.3041. To listen via webcast, register online at the investor section of kemper.com at least 15 minutes prior to the webcast to download and install any necessary software.

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

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

About Kemper

The Kemper family of companies is one of the nation’s leading specialized insurers. With nearly $13 billion in assets, Kemper is improving the world of insurance by providing affordable and easy-to-use personalized solutions to individuals, families and businesses through its Auto, Personal Insurance, Life and Health brands. Kemper serves over 6.4 million policies, is represented by more than 30,000 agents and brokers, and has over 9,100 associates dedicated to meeting the ever-changing needs of its customers.

Learn more about Kemper.

Caution Regarding Forward-Looking Statements

This press release may contain or incorporate by reference information that includes or is based on forward-looking statements within the meaning of the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements give expectations or forecasts of future events and can be identified by the fact that they relate to future actions, performance or results rather than strictly to historical or current facts.

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

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

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

		Exhibit

Exhibit 99.2

Investor Supplement

First Quarter 2020

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

Non-GAAP Financial Measures

This document contains non-GAAP financial measures to analyze the Company’s operating performance for the periods presented. Because the Company’s calculation of these measures may differ from similar measures used by other companies, investors should be careful when comparing the Company’s non-GAAP financial measures to those of other companies. For detailed disclosures on non-GAAP financial measures please refer to the “Definitions of Non-GAAP Financial Measures” on Page 33.

Caution Regarding Forward-Looking Statements

This Investor Supplement may contain or incorporate by reference information that includes or is based on forward-looking statements within the meaning of the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements give expectations or forecasts of future events and can be identified by the fact that they relate to future actions, performance or results rather than strictly to historical or current facts.

Any or all forward-looking statements may turn out to be wrong, and, accordingly, readers are cautioned not to place undue reliance on such statements, which speak only as of May 7, 2020,, the date this Investor Supplement was included as an exhibit to the Company's Current Report on Form 8-K. Forward-looking statements involve a number of risks and uncertainties that are difficult to predict and are not guarantees of future performance. Among the general factors that could cause actual results and financial condition to differ materially from estimated results and financial condition are those factors listed in periodic reports filed by Kemper Corporation with the SEC. The COVID-19 outbreak and subsequent global pandemic (“Pandemic”) is an extraordinary event that creates unique uncertainties and risks. Kemper cannot provide any assurances as to the impacts of the Pandemic and related economic conditions on the Company’s operating and financial results.

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

Kemper Corporation

Investor Supplement

First Quarter 2020

Table of Contents

	Page
Consolidated Financial Highlights	3
Consolidated Statements of Operations	4
Consolidated Balance Sheets	5
Consolidated Statements of Cash Flows	6-7
Capital Metrics	8-9
Debt Outstanding and Ratings	10
Segment Summary Results:
Revenues	11
Operating Profit (Loss)	12
Net Operating Income (Loss)	12
Catastrophe Frequency and Severity	13
Specialty Property & Casualty Insurance Segment - Results of Operations and Selected Financial Information	14
Specialty Personal Automobile Insurance	15
Commercial Automobile Insurance	16
Preferred Property & Casualty Insurance Segment - Results of Operations and Selected Financial Information	17-18
Preferred Personal Automobile Insurance	19
Homeowners and Other Personal Insurance	20
Homeowners Insurance	21
Other Personal Insurance	22
Life & Health Insurance Segment - Results of Operations and Selected Financial Information	23
Life Insurance	24
Accident and Health Insurance	24
Property Insurance	25
Insurance Expenses and Interest and Other Expenses	26
Details of Investment Performance	27
Details of Invested Assets	28-29
Investment Concentration	30
Municipal Bond Securities	31
Investments in Limited Liability Companies and Limited Partnerships	32
Definitions of Non-GAAP Financial Measures	33-34
As Adjusted for Acquisition	35
As Adjusted - Selected Consolidated Financial Information	36
As Adjusted - Specialty Property & Casualty Insurance Segment Selected Financial Information	37
As Adjusted - Specialty Personal Automobile Insurance Selected Financial Information	38

Kemper Corporation<br><br>Consolidated Financial Highlights<br><br>(Dollars in Millions, Except Per Share Amounts)<br><br>(Unaudited)
	Three Months Ended
	Mar 31, <br>2020			Dec 31, <br>2019			Sep 30, <br>2019			Jun 30, <br>2019			Mar 31, <br>2019
For Period Ended
Earned Premiums	$	1,166.4		$	1,145.8		$	1,135.2		$	1,116.6		$	1,074.8
Net Investment Income	85.6			93.9			91.7			96.0			82.7
Other Income	90.3			3.7			7.2			22.7			1.9
Income (Loss) from Change in Fair Value of Equity and Convertible Securities	(117.8		)	39.2			9.8			25.5			64.4
Net Investment Gains (Loss)	4.5			1.1			(0.1		)	14.6			12.5
Total Revenues	$	1,229.0		$	1,283.7		$	1,243.8		$	1,275.4		$	1,236.3
Net Income	$	64.0		$	124.7		$	129.0		$	122.1		$	155.3
Income from Continuing Operations	$	64.0		$	124.7		$	129.0		$	122.1		$	155.3
Adjusted Consolidated Net Operating Income ^1^	$	162.9		$	97.9		$	130.0		$	91.5		$	98.9
Per Unrestricted Common Share Amounts:
Basic:
Net Income	$	0.96		$	1.87		$	1.93		$	1.87		$	2.38
Income from Continuing Operations	$	0.96		$	1.87		$	1.93		$	1.87		$	2.38
Adjusted Consolidated Net Operating Income ^1^	$	2.45		$	1.46		$	1.95		$	1.39		$	1.52
Diluted:
Net Income	$	0.95		$	1.85		$	1.91		$	1.84		$	2.35
Income from Continuing Operations	$	0.95		$	1.85		$	1.91		$	1.84		$	2.35
Adjusted Consolidated Net Operating Income ^1^	$	2.43		$	1.45		$	1.93		$	1.38		$	1.50
Dividends Paid to Shareholders Per Share	$	0.30		$	0.28		$	0.25		$	0.25		$	0.25
At Period End
Total Assets	$	12,932.3		$	12,989.1		$	12,819.9		$	12,616.5		$	12,182.2
Insurance Reserves	$	5,442.4		$	5,471.8		$	5,441.3		$	5,426.1		$	5,370.4
Debt	$	778.1		$	778.4		$	778.7		$	873.3		$	908.5
Shareholders’ Equity	$	3,760.8		$	3,972.3		$	3,894.2		$	3,683.7		$	3,320.1
Shareholders’ Equity Excluding Goodwill^1,2^	$	2,646.8		$	2,858.3		$	2,780.2		$	2,569.7		$	2,208.6
Common Shares Issued and Outstanding (In Millions)	65.365			66.666			66.642			66.564			64.931
Book Value Per Share^2^	$	57.54		$	59.59		$	58.43		$	55.34		$	51.13
Book Value Per Share Excluding Goodwill^1,2^	$	40.49		$	42.87		$	41.72		$	38.60		$	34.01
Book Value Per Share Excluding Net Unrealized Gains on Fixed Maturities^1,2^	$	53.53		$	53.08		$	51.51		$	49.82		$	47.41
Book Value Per Share Excluding Net Unrealized Gains on Fixed Maturities and Goodwill^1,2^	$	36.49		$	36.36		$	34.80		$	33.08		$	30.29
Debt to Total Capitalization^2^	17.1		%	16.4		%	16.7		%	19.2		%	21.5		%
Rolling 12 Months Return on 5-point Average Shareholders Equity^2,3^	11.8		%	14.8		%	12.1		%	12.4		%	10.8		%
^1^ Non-GAAP Financial Measure. See page 33 for definition.
^2^See Capital Metrics on pages 8-9 for detail calculations.
^3^ Rolling 12 Months Return on 5-point Average Shareholders Equity is calculated by taking the last 12 months of Net Income (Loss) divided by the 5-point average Shareholders’ Equity. The 5-point Average Shareholders’ Equity is calculated by using a 5-point quarter average of Shareholders’ Equity for the 12 month period.

Page 3

Kemper Corporation<br><br>Consolidated Statements of Operations<br><br>(Dollars in Millions, Except Per Share Amounts)<br><br>(Unaudited)
	Three Months Ended
	Mar 31, <br>2020			Dec 31, <br>2019			Sep 30, <br>2019			Jun 30, <br>2019			Mar 31, <br>2019
Revenues:
Earned Premiums	$	1,166.4		$	1,145.8		$	1,135.2		$	1,116.6		$	1,074.8
Net Investment Income	85.6			93.9			91.7			96.0			82.7
Other Income	90.3			3.7			7.2			22.7			1.9
Income from Change in Fair Value of Equity and Convertible Securities	(117.8		)	39.2			9.8			25.5			64.4
Net Realized Gains on Sales of Investments	16.5			2.8			1.7			21.3			16.1
Impairment Losses	(12.0		)	(1.7		)	(1.8		)	(6.7		)	(3.6		)
Total Revenues	1,229.0			1,283.7			1,243.8			1,275.4			1,236.3
Expenses:
Policyholders’ Benefits and Incurred Losses and Loss Adjustment Expenses	835.2			814.9			782.6			825.4			765.4
Insurance Expenses	271.6			265.4			256.0			263.5			234.8
Loss from Early Extinguishment of Debt	—			—			5.8			—			—
Interest and Other Expenses	44.5			46.5			37.9			38.0			41.4
Total Expenses	1,151.3			1,126.8			1,082.3			1,126.9			1,041.6
Income before Income Taxes	77.7			156.9			161.5			148.5			194.7
Income Tax Expense	(13.7		)	(32.2		)	(32.5		)	(26.4		)	(39.4		)
Net Income	$	64.0		$	124.7		$	129.0		$	122.1		$	155.3
Income Per Unrestricted Share:
Basic	$	0.96		$	1.87		$	1.93		$	1.87		$	2.38
Diluted	$	0.95		$	1.85		$	1.91		$	1.84		$	2.35
Net Income Per Unrestricted Share:
Basic	$	0.96		$	1.87		$	1.93		$	1.87		$	2.38
Diluted	$	0.95		$	1.85		$	1.91		$	1.84		$	2.35
Dividends Paid to Shareholders Per Share	$	0.30		$	0.28		$	0.25		$	0.25		$	0.25
Weighted Average Unrestricted Common Shares Outstanding (in Millions)	66.516			66.650			66.622			65.408			64.815

Page 4

Kemper Corporation<br><br>Consolidated Balance Sheets<br><br>(Dollars in Millions)<br><br>(Unaudited)
	Mar 31, <br>2020		Dec 31, <br>2019		Sep 30, <br>2019		Jun 30, <br>2019		Mar 31, <br>2019
Assets:
Investments:
Fixed Maturities at Fair Value	$	6,998.5	$	6,922.1	$	6,883.6	$	6,540.2	$	6,573.1
Equity Securities at Fair Value	709.8		907.3		928.7		923.3		916.9
Equity Securities at Modified Cost	44.8		41.9		41.2		38.1		39.2
Equity Method Limited Liability Investments at Cost Plus Cumulative Undistributed Earnings	226.3		220.4		213.4		219.7		197.8
Convertible Securities at Fair Value	32.8		37.3		35.6		34.3		33.8
Short-term Investments at Cost which Approximates Fair Value	166.7		470.9		424.2		642.5		350.4
Other Investments	760.2		661.5		561.6		554.3		485.9
Total Investments	8,939.1		9,261.4		9,088.3		8,952.4		8,597.1
Cash	301.3		136.8		133.6		104.4		107.0
Receivables from Policyholders	1,219.1		1,117.1		1,139.8		1,095.2		1,048.6
Other Receivables	207.8		219.7		217.1		248.1		254.6
Deferred Policy Acquisition Costs	551.5		537.7		536.5		521.0		499.2
Goodwill	1,114.0		1,114.0		1,114.0		1,114.0		1,111.5
Current Income Tax Assets	17.8		44.7		44.1		41.0		19.7
Other Assets	581.7		557.7		546.5		540.4		544.5
Total Assets	$	12,932.3	$	12,989.1	$	12,819.9	$	12,616.5	$	12,182.2
Liabilities and Shareholders’ Equity:
Insurance Reserves:
Life and Health	$	3,500.8	$	3,502.0	$	3,499.7	$	3,514.2	$	3,501.7
Property and Casualty	1,941.6		1,969.8		1,941.6		1,911.9		1,868.7
Total Insurance Reserves	5,442.4		5,471.8		5,441.3		5,426.1		5,370.4
Unearned Premiums	1,621.4		1,545.5		1,574.9		1,545.6		1,499.5
Policyholder Contract Liabilities	430.5		309.8		204.1		221.8		254.5
Deferred Income Tax Liabilities	116.0		178.2		175.3		124.1		82.6
Liability for Unrecognized Tax Benefits	—		—		—		—		3.9
Accrued Expenses and Other Liabilities	783.1		733.1		751.4		741.9		742.7
Long-term Debt, Current and Non-current, at Amortized Cost	778.1		778.4		778.7		873.3		908.5
Total Liabilities	9,171.5		9,016.8		8,925.7		8,932.8		8,862.1
Shareholders’ Equity:
Common Stock	6.5		6.7		6.7		6.7		6.5
Paid-in Capital	1,788.2		1,819.2		1,812.9		1,806.4		1,673.0
Retained Earnings	1,791.2		1,810.3		1,704.5		1,593.7		1,489.7
Accumulated Other Comprehensive Income	174.9		336.1		370.1		276.9		150.9
Total Shareholders’ Equity	3,760.8		3,972.3		3,894.2		3,683.7		3,320.1
Total Liabilities and Shareholders’ Equity	$	12,932.3	$	12,989.1	$	12,819.9	$	12,616.5	$	12,182.2

Page 5

Kemper Corporation<br><br>Consolidated Statements of Cash Flows<br><br>(Dollars in Millions)<br><br>(Unaudited)
	Three Months Ended
	Mar 31, <br>2020			Mar 31, <br>2019
Operating Activities:
Net Income	$	64.0		$	155.3
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities:
Amortization of Intangible Assets Acquired	4.7			8.7
Equity in Earnings of Equity Method Limited Liability Investments	(1.8		)	(3.6		)
Distribution of Accumulated Earnings of Equity Method Limited Liability Investments	1.1			4.3
Decrease (Increase) in Value of Equity Securities at Fair Value	117.8			(64.4		)
Amortization of Investment Securities and Depreciation of Investment Real Estate	0.4			1.6
Net Realized Gains on Sales of Investments	(16.5		)	(16.1		)
Impairment Losses	12.0			3.6
Depreciation of Property and Equipment	8.0			3.1
Increase in Receivables	(89.4		)	(56.1		)
Increase in Deferred Policy Acquisition Costs	(13.8		)	(29.2		)
Increase (Decrease) in Insurance Reserves	(29.4		)	3.8
Increase in Unearned Premiums	75.9			75.2
Change in Income Taxes	14.7			40.1
Change in Accrued Expenses and Other Liabilities	(76.3		)	(42.4		)
Other, Net	(9.1		)	5.1
Net Cash Provided by Operating Activities (Carryforward to page 7)	62.3			89.0

Page 6

Kemper Corporation<br><br>Consolidated Statements of Cash Flows<br><br>(Dollars in Millions)<br><br>(Unaudited)
	Three Months Ended
	Mar 31, <br>2020			Mar 31, <br>2019
Net Cash Provided by Operating Activities (Carryforward from page 6)	62.3			89.0
Investing Activities:
Sales, Paydowns and Maturities of Fixed Maturities	225.5			402.6
Purchases of Fixed Maturities	(393.9		)	(368.4		)
Sales of Equity Securities	372.1			39.6
Purchases of Equity Securities	(290.0		)	(207.6		)
Return of Investment of Equity Method Limited Liability Investments	4.0			7.1
Acquisitions of Equity Method Limited Liability Investments	(9.2		)	(18.6		)
Decrease (Increase) in Short-term Investments	301.8			(53.3		)
Improvements of Investment Real Estate	(0.1		)	(0.4		)
Acquisitions of Mortgage Loans	(4.6		)	—
Paydowns of Mortgage Loans	8.5			—
Increase (Decrease) in Other Investments	(0.4		)	(10.6		)
Purchase of Corporate-owned Life Insurance	(100.0		)	—
Acquisition of Software and Long-lived Assets	(20.1		)	(9.3		)
Other, Net	(1.5		)	(0.8		)
Net Cash Provided (Used) by Investing Activities	94.0			(219.7		)
Financing Activities:
Proceeds from issuance of common stock, net of shares withheld for tax	(95.9		)	—
Dividends and Dividend Equivalents Paid	(20.0		)	(16.4		)
Proceeds from Policyholder Contract Liabilities	156.6			187.7
Repayment of Policyholder Contract Liabilities	(36.2		)	(10.0		)
Proceeds from Shares Issued under Employee Stock Purchase Plan	1.0			—
Cash Exercise of Stock Options	2.7			1.3
Net Cash Provided by Financing Activities	8.2			162.6
Increase in Cash	164.5			31.9
Cash, Beginning of Year	136.8			75.1
Cash, End of Period	$	301.3		$	107.0

Page 7

Kemper Corporation<br><br>Capital Metrics<br><br>(Dollars and Shares in Millions, Except Per Share Amounts)<br><br>(Unaudited)
	Three Months Ended
	Mar 31, <br>2020			Dec 31, <br>2019			Sep 30, <br>2019			Jun 30, <br>2019			Mar 31, <br>2019
Book Value Per Share
Numerator
Shareholders’ Equity	$	3,760.8		$	3,972.3		$	3,894.2		$	3,683.7		$	3,320.1
Less: Goodwill	(1,114.0		)	(1,114.0		)	(1,114.0		)	(1,114.0		)	(1,111.5		)
Shareholders’ Equity Excluding Goodwill^1^	$	2,646.8		$	2,858.3		$	2,780.2		$	2,569.7		$	2,208.6
Shareholders’ Equity	$	3,760.8		$	3,972.3		$	3,894.2		$	3,683.7		$	3,320.1
Less: Net Unrealized Gains on Fixed Maturities	(261.6		)	(434.0		)	(461.3		)	(367.8		)	(241.9		)
Shareholders’ Equity Excluding Net Unrealized Gains on Fixed Maturities^1^	$	3,499.2		$	3,538.3		$	3,432.9		$	3,315.9		$	3,078.2
Less: Goodwill	(1,114.0		)	(1,114.0		)	(1,114.0		)	(1,114.0		)	(1,111.5		)
Shareholders’ Equity Excluding Net Unrealized Gains on Fixed Maturities and Goodwill1	$	2,385.2		$	2,424.3		$	2,318.9		$	2,201.9		$	1,966.7
Denominator
Common Shares Issued and Outstanding	65.365			66.666			66.642			66.564			64.931
Book Value Per Share	$	57.54		$	59.59		$	58.43		$	55.34		$	51.13
Book Value Per Share Excluding Goodwill^1^	$	40.49		$	42.87		$	41.72		$	38.60		$	34.01
Book Value Per Share Excluding Net Unrealized Gains on Fixed Maturities^1^	$	53.53		$	53.08		$	51.51		$	49.82		$	47.41
Book Value Per Share Excluding Net Unrealized Gains on Fixed Maturities and Goodwill^1^	$	36.49		$	36.36		$	34.80		$	33.08		$	30.29
Return on Shareholders’ Equity
Numerator
Rolling 12 Months Net Income	$	439.8		$	531.1		$	412.9		$	376.1		$	291.6
Denominator (5-point Average)
5-point Average Shareholders’ Equity	$	3,726.2		$	3,584.1		$	3,402.4		$	3,032.7		$	2,708.7
Rolling 12 Months Return on Average Shareholders' Equity (5-point Average)	11.8		%	14.8		%	12.1		%	12.4		%	10.8		%
Return on Shareholders’ Equity Excluding Goodwill^1^
Denominator (5-point Average)
5-point Average Shareholders’ Equity Excluding Goodwill^1^	$	2,612.7		$	2,470.9		$	2,293.8		$	2,082.3		$	1,916.5
Rolling 12 Months Return on Average Shareholders' Equity Excluding Goodwill (5-point Average)^1^	16.8		%	21.5		%	18.0		%	18.1		%	15.2		%
Return on Shareholders’ Equity Excluding Net Unrealized Gains on Fixed Maturities^1^
Denominator (5-point Average)
5-point Average Shareholders’ Equity Excluding Net Unrealized Gains on Fixed Maturities^1^	$	3,372.9		$	3,261.0		$	3,144.6		$	2,838.0		$	2,549.5
Rolling 12 Months Return on Average Shareholders' Equity Excluding Net Unrealized Gains on Fixed Maturities (5-point Average)^1^	13.0		%	16.3		%	13.1		%	13.3		%	11.4		%
Return on Shareholders’ Equity Excluding Net Unrealized Gains on Fixed Maturities and Goodwill^1^
Denominator (5-point Average)
5-point Average Shareholders’ Equity Excluding Net Unrealized Gains on Fixed Maturities and Goodwill^1^	$	2,259.4		$	2,147.8		$	2,036.0		$	1,887.6		$	1,757.3
Rolling 12 Months Return on Average Shareholders' Equity Excluding Net Unrealized Gains on Fixed Maturities and Goodwill (5-point Average)^1^	19.5		%	24.7		%	20.3		%	19.9		%	16.6		%
^1^Non-GAAP financial measure. See definitions beginning on page 33.

Page 8

Kemper Corporation<br><br>Capital Metrics<br><br>(Dollars and Shares in Millions, Except Per Share Amounts)<br><br>(Unaudited)
	Three Months Ended
	Mar 31, <br>2020			Dec 31, <br>2019			Sep 30, <br>2019			Jun 30, <br>2019			Mar 31, <br>2019
Debt and Total Capitalization
Debt	$	778.1		$	778.4		$	778.7		$	873.3		$	908.5
Shareholders’ Equity	3,760.8			3,972.3			3,894.2			3,683.7			3,320.1
Total Capitalization	$	4,538.9		$	4,750.7		$	4,672.9		$	4,557.0		$	4,228.6
Ratio of Debt to Shareholders’ Equity	20.7		%	19.6		%	20.0		%	23.7		%	27.4		%
Ratio of Debt to Total Capitalization	17.1		%	16.4		%	16.7		%	19.2		%	21.5		%
Parent Company Liquidity
Kemper Holding Company Cash and Investments	$	199.1		$	206.8		$	169.1		$	312.7		$	118.6
Borrowings Available Under Credit Agreement	400.0			400.0			400.0			400.0			300.0
Parent Company Liquidity	$	599.1		$	606.8		$	569.1		$	712.7		$	418.6
Capital Returned to Shareholders
Cash Dividends Paid	20.0			18.7			16.7			16.2			16.2

Page 9

Kemper Corporation<br><br>Debt Outstanding, FHLB Advances and Ratings<br><br>(Dollars in Millions)<br><br>(Unaudited)
	Mar 31, 2020		Dec 31, 2019		Sep 30, 2019		Jun 30, 2019		Mar 31, 2019
Kemper Corporation:
Term Loan due June 29, 2020	$	—	$	—	$	—	$	—	$	34.9
Term Loan due July 5, 2023	49.9		49.9		49.9		$	—	$	—
Senior Notes at Amortized Cost:
5.0% Senior Notes due September 19, 2022	279.6		279.9		280.3		280.6		281.0
4.35% Senior Notes due February 15, 2025	448.6		448.6		448.5		448.5		448.4
7.375% Subordinated Debentures due February 27, 2054 at Amortized Cost	—		—		—		144.2		144.2
Debt Outstanding	$	778.1	$	778.4	$	778.7	$	873.3	$	908.5
Federal Home Loan Bank Advances to Insurance Subsidiaries:
Reported as Policyholder Account Liabilities:
Federal Home Loan Bank of Chicago	$	364.2	$	243.4	$	137.6	$	155.0	$	187.7
Reported as Debt Outstanding:
Federal Home Loan Bank of Dallas	$	—	$	—	$	—	$	—	$	—
Federal Home Loan Bank of Chicago	$	—	$	—	$	—	$	—	$	—
	A.M. Best		Moody’s		S&P		Fitch
As of Date of Financial Supplement
Kemper Debt Ratings:
5.0% Senior Notes due September 19, 2022	BBB-		Baa3		BBB		BBB
4.35% Senior Notes due February 15, 2025	BBB-		Baa3		BBB		BBB
Term Loan due July 5, 2023	NR		Baa3		BBB		BBB+
Insurance Company Financial Strength Ratings:
Trinity Universal Insurance Company	A-		A3		A		A
United Insurance Company of America	A-		A3		A-		A-
Reserve National Insurance Company	A-		NR		NR		NR
Infinity Insurance Company	A-		A3		A		NR

NR - Not Rated

Page 10

Kemper Corporation<br><br>Segment Revenues<br><br>(Dollars in Millions)<br><br>(Unaudited)
	Three Months Ended
	Mar 31, <br>2020			Dec 31, <br>2019			Sep 30, <br>2019			Jun 30, <br>2019			Mar 31, <br>2019
Revenues:
Specialty Property & Casualty Insurance:
Earned Premiums:
Specialty Automobile	$	753.2		$	733.1		$	719.2		$	703.7		$	669.6
Commercial Automobile	69.3			66.6			64.2			62.3			59.7
Total Specialty Property & Casualty Insurance Earned Premium	822.5			799.7			783.4			766.0			729.3
Net Investment Income	28.8			28.3			28.8			28.9			21.5
Other Income	0.9			0.8			4.4			1.0			0.8
Total Specialty Property & Casualty Insurance Revenues	852.2			828.8			816.6			795.9			751.6
Preferred Property & Casualty Insurance:
Earned Premiums:
Preferred Automobile	114.9			117.2			119.7			117.9			115.4
Homeowners	56.8			58.7			61.5			60.8			60.3
Other Personal	9.2			9.3			9.8			9.8			9.9
Total Preferred Property & Casualty Insurance Earned Premium	180.9			185.2			191.0			188.5			185.6
Net Investment Income	9.7			11.5			12.0			12.3			8.3
Total Preferred Property & Casualty Insurance Revenues	190.6			196.7			203.0			200.8			193.9
Life & Health Insurance:
Earned Premiums:
Life	97.2			95.6			96.2			97.0			95.8
Accident and Health	49.4			48.5			47.6			47.9			46.9
Property	16.4			16.8			17.0			17.2			17.2
Total Life & Health Insurance Earned Premiums	163.0			160.9			160.8			162.1			159.9
Net Investment Income	51.0			52.0			49.7			53.0			51.7
Other Income	0.1			2.9			2.9			1.6			1.1
Total Life & Health Insurance Revenues	214.1			215.8			213.4			216.7			212.7
Total Segment Revenues	1,256.9			1,241.3			1,233.0			1,213.4			1,158.2
Income (Loss) from Change in Fair Value of Equity and Convertible Securities	(117.8		)	39.2			9.8			25.5			64.4
Net Realized Gains on Sales of Investments	16.5			2.8			1.7			21.3			16.1
Impairment Losses	(12.0		)	(1.7		)	(1.8		)	(6.7		)	(3.6		)
Other	85.4			2.1			1.1			21.9			1.2
Total Revenues	$	1,229.0		$	1,283.7		$	1,243.8		$	1,275.4		$	1,236.3

Page 11

Kemper Corporation<br><br>Segment Operating Results<br><br>(Dollars in Millions)<br><br>(Unaudited)
	Three Months Ended
	Mar 31, <br>2020			Dec 31, <br>2019			Sep 30, <br>2019			Jun 30, <br>2019			Mar 31, <br>2019
Segment Operating Profit:
Specialty Property & Casualty Insurance	$	75.0		$	78.5		$	98.6		$	79.4		$	99.4
Preferred Property & Casualty Insurance	23.0			16.1			26.5			6.4			3.3
Life & Health Insurance	26.5			35.5			41.0			16.1			29.3
Total Segment Operating Profit	124.5			130.1			166.1			101.9			132.0
Partial Satisfaction of Judgment	89.4			—			—			20.1			—
Other	(11.1		)	(7.3		)	(3.1		)	(12.4		)	(8.6		)
Corporate and Other Operating Income(Loss)	78.3			(7.3		)	(3.1		)	7.7			(8.6		)
Total Operating Profit	202.8			122.8			163.0			109.6			123.4
Income From:
Change in Fair Value of Equity and Convertible Securities	(117.8		)	39.2			9.8			25.5			64.4
Net Realized Gains on Sales of Investments	16.5			2.8			1.7			21.3			16.1
Impairment Losses	(12.0		)	(1.7		)	(1.8		)	(6.7		)	(3.6		)
Acquisition Related Transaction Integration and Other Costs	(11.8		)	(6.2		)	(5.4		)	(1.2		)	(5.6		)
Loss from Early Extinguishment of Debt	—			—			(5.8		)	—			—
Income from Continuing Operations before Income Taxes	$	77.7		$	156.9		$	161.5		$	148.5		$	194.7
Segment Net Operating Income:
Specialty Property & Casualty Insurance	$	60.1		$	62.3		$	78.5		$	62.7		$	79.6
Preferred Property & Casualty Insurance	18.4			12.8			21.1			5.2			2.8
Life & Health Insurance	22.3			28.9			33.4			13.3			23.1
Total Segment Net Operating Income	100.8			104.0			133.0			81.2			105.5
Corporate and Other Net Operating Income (Loss) From:
Partial Satisfaction of Legal Judgment	70.6			—			—			15.9			—
Other	(8.5		)	(6.1		)	(3.0		)	(5.6		)	(6.6		)
Corporate and Other Net Operating Income (Loss)	62.1			(6.1		)	(3.0		)	10.3			(6.6		)
Adjusted Consolidated Net Operating Income	162.9			97.9			130.0			91.5			98.9
Net Income (Loss) From:
Change in Fair Value of Equity and Convertible Securities	(93.1		)	30.9			7.8			20.1			50.9
Net Realized Gains on Sales of Investments	13.0			2.2			1.4			16.8			12.7
Impairment Losses	(9.5		)	(1.3		)	(1.5		)	(5.3		)	(2.8		)
Acquisition Related Transaction, Integration and Other Costs	(9.3		)	(5.0		)	(4.1		)	(1.0		)	(4.4		)
Loss from Early Extinguishment of Debt	—			—			(4.6		)	—			—
Income from Continuing Operations	$	64.0		$	124.7		$	129.0		$	122.1		$	155.3

Page 12

Kemper Corporation<br><br>Catastrophe Frequency and Severity<br><br>(Dollars in Millions)<br><br>(Unaudited)
	Three Months Ended Mar 31, 2020
	Specialty Property & Casualty Insurance Segment				Preferred Property & Casualty Insurance Segment			Life & Health Insurance Segment			Consolidated
	Number of Events		Losses and LAE		Number of Events	Losses and LAE		Number of Events	Losses and LAE		Number of Events	Losses and LAE
Range of Losses and LAE Per Event:
Below $5	$	4	$	0.2	7	$	4.8	6	$	0.8	9	$	5.8
$5 - $10	—		—		—	—		—	—		—	—
$10 - $15	—		—		—	—		—	—		—	—
$15 - $20	—		—		—	—		—	—		—	—
$20 - $25	—		—		—	—		—	—		—	—
Greater Than $25	—		—		—	—		—	—		—	—
Total	4		$	0.2	7	$	4.8	6	$	0.8	9	$	5.8
	Three Months Ended Mar 31, 2019
	Specialty Property & Casualty Insurance Segment				Preferred Property & Casualty Insurance Segment			Life & Health Insurance Segment			Consolidated
	Number of Events		Losses and LAE		Number of Events	Losses and LAE		Number of Events	Losses and LAE		Number of Events	Losses and LAE
Range of Losses and LAE Per Event:
Below $5	$	6	$	0.6	9	$	4.3	4	$	0.3	9	$	4.7
$5 - $10	—		—		—	—		—	—		—	—
$10 - $15	—		—		1	12.3		—	—		1	12.8
$15 - $20	—		—		—	—		—	—		—	—
$20 - $25	—		—		—	—		—	—		—	—
Greater Than $25	—		—		—	—		—	—		—	—
Total	6		$	0.6	10	$	16.6	4	$	0.3	10	$	17.5

Page 13

Kemper Corporation<br><br>Specialty Property & Casualty Insurance Segment<br><br>Results of Operations and Selected Financial Information<br><br>(Dollars in Millions)<br><br>(Unaudited)
	Three Months Ended
	Mar 31, <br>2020			Dec 31, <br>2019			Sep 30, <br>2019			Jun 30, <br>2019			Mar 31, <br>2019
Results of Operations
Net Premiums Written	$	911.2		$	782.5		$	815.0		$	804.7		$	809.1
Earned Premiums	$	822.5		$	799.7		$	783.4		$	766.0		$	729.3
Net Investment Income	28.8			28.3			28.8			28.9			21.5
Other Income	0.9			0.8			4.4			1.0			0.8
Total Revenues	852.2			828.8			816.6			795.9			751.6
Incurred Losses and LAE related to:
Current Year:
Non-catastrophe Losses and LAE	619.8			599.5			579.4			579.2			544.3
Catastrophe Losses and LAE	0.2			3.8			2.3			4.4			0.6
Prior Years:
Non-catastrophe Losses and LAE	5.3			(4.1		)	(4.1		)	(8.6		)	(18.3		)
Catastrophe Losses and LAE	0.2			0.2			0.2			(0.1		)	0.2
Total Incurred Losses and LAE	625.5			599.4			577.8			574.9			526.8
Insurance Expenses	152.1			150.7			139.2			140.9			124.8
Other Expenses	(0.4		)	0.2			1.0			0.7			0.6
Operating Profit	75.0			78.5			98.6			79.4			99.4
Income Tax Expense	(14.9		)	(16.2		)	(20.1		)	(16.7		)	(19.8		)
Segment Net Operating Income	$	60.1		$	62.3		$	78.5		$	62.7		$	79.6
Ratios Based On Earned Premiums
Current Year Non-catastrophe Losses and LAE Ratio	75.4		%	75.0		%	74.0		%	75.6		%	74.6		%
Current Year Catastrophe Losses and LAE Ratio	—			0.5			0.3			0.6			0.1
Prior Years Non-catastrophe Losses and LAE Ratio	0.6			(0.5		)	(0.5		)	(1.1		)	(2.5		)
Prior Years Catastrophe Losses and LAE Ratio	—			—			—			—			—
Total Incurred Loss and LAE Ratio	76.0			75.0			73.8			75.1			72.2
Insurance Expense Ratio	18.5			18.8			17.8			18.4			17.1
Combined Ratio	94.5		%	93.8		%	91.6		%	93.5		%	89.3		%
Underlying Combined Ratio ^1^
Current Year Non-catastrophe Losses and LAE Ratio	75.4		%	75.0		%	74.0		%	75.6		%	74.6		%
Insurance Expense Ratio	18.5			18.8			17.8			18.4			17.1
Underlying Combined Ratio	93.9		%	93.8		%	91.8		%	94.0		%	91.7		%
Non-GAAP Measure Reconciliation
Combined Ratio as Reported	94.5		%	93.8		%	91.6		%	93.5		%	89.3		%
Less:
Current Year Catastrophe Losses and LAE Ratio	—			0.5			0.3			0.6			0.1
Prior Years Non-catastrophe Losses and LAE Ratio	0.6			(0.5		)	(0.5		)	(1.1		)	(2.5		)
Prior Years Catastrophe Losses and LAE Ratio	—			—			—			—			—
Underlying Combined Ratio	93.9		%	93.8		%	91.8		%	94.0		%	91.7		%
^1^Underlying Combined Ratio is a non-GAAP measure, which is computed as the difference between three operating ratios: the combined ratio, the effect of catastrophes (excluding development of prior-year catastrophes) on the combined ratio and the effect of prior-year reserve development at the reporting date (including development on prior-year catastrophes) on the combined ratio.

Page 14

Kemper Corporation<br><br>Specialty Property & Casualty Insurance Segment<br><br>Specialty Personal Automobile Insurance - Results of Operations and Selected Financial Information<br><br>(Dollars in Millions)<br><br>(Unaudited)
	Three Months Ended
	Mar 31, <br>2020			Dec 31, <br>2019			Sep 30, <br>2019			Jun 30, <br>2019			Mar 31, <br>2019
Results of Operations
Net Premiums Written	$	830.3		$	714.9		$	749.5		$	734.5		$	742.2
Earned Premiums	$	753.2		$	733.1		$	719.2		$	703.7		$	669.6
Net Investment Income	24.8			24.5			24.9			24.6			18.4
Other Income	0.8			0.8			4.3			0.9			0.8
Total Revenues	778.8			758.4			748.4			729.2			688.8
Incurred Losses and LAE related to:
Current Year:
Non-catastrophe Losses and LAE	576.0			557.5			538.2			537.0			498.8
Catastrophe Losses and LAE	0.2			3.3			2.0			4.1			0.5
Prior Years:
Non-catastrophe Losses and LAE	17.8			(4.4		)	(1.8		)	(3.7		)	(14.4		)
Catastrophe Losses and LAE	0.2			0.2			0.2			—			0.1
Total Incurred Losses and LAE	594.2			556.6			538.6			537.4			485.0
Insurance Expenses	139.2			138.1			128.4			128.9			114.7
Other Expenses	(0.4		)	0.2			1.0			0.7			0.6
Operating Profit	45.8			63.5			80.4			62.2			88.5
Income Tax Expense	(8.8		)	(10.5		)	(18.4		)	(13.0		)	(17.8		)
Total Product Line Net Operating Income	$	37.0		$	53.0		$	62.0		$	49.2		$	70.7
Ratios Based On Earned Premiums
Current Year Non-catastrophe Losses and LAE Ratio	76.5		%	76.0		%	74.9		%	76.3		%	74.5		%
Current Year Catastrophe Losses and LAE Ratio	—			0.5			0.3			0.6			0.1
Prior Years Non-catastrophe Losses and LAE Ratio	2.4			(0.6		)	(0.3		)	(0.5		)	(2.2		)
Prior Years Catastrophe Losses and LAE Ratio	—			—			—			—			—
Total Incurred Loss and LAE Ratio	78.9			75.9			74.9			76.4			72.4
Insurance Expense Ratio	18.5			18.8			17.9			18.3			17.1
Combined Ratio	97.4		%	94.7		%	92.8		%	94.7		%	89.5		%
Underlying Combined Ratio ^1^
Current Year Non-catastrophe Losses and LAE Ratio	76.5		%	76.0		%	74.9		%	76.3		%	74.5		%
Insurance Expense Ratio	18.5			18.8			17.9			18.3			17.1
Underlying Combined Ratio	95.0		%	94.8		%	92.8		%	94.6		%	91.6		%
Non-GAAP Measure Reconciliation
Combined Ratio	97.4		%	94.7		%	92.8		%	94.7		%	89.5		%
Less:
Current Year Catastrophe Losses and LAE Ratio	—			0.5			0.3			0.6			0.1
Prior Years Non-catastrophe Losses and LAE Ratio	2.4			(0.6		)	(0.3		)	(0.5		)	(2.2		)
Prior Years Catastrophe Losses and LAE Ratio	—			—			—			—			—
Underlying Combined Ratio	95.0		%	94.8		%	92.8		%	94.6		%	91.6		%
^1^Underlying Combined Ratio is a non-GAAP measure, which is computed as the difference between three operating ratios: the combined ratio, the effect of catastrophes (excluding development of prior-year catastrophes) on the combined ratio and the effect of prior-year reserve development at the reporting date (including development on prior-year catastrophes) on the combined ratio.

Page 15

Kemper Corporation<br><br>Specialty Property & Casualty Insurance Segment<br><br>Commercial Automobile Insurance - Results of Operations and Selected Financial Information<br><br>(Dollars in Millions)<br><br>(Unaudited)
	Three Months Ended
	Mar 31, <br>2020			Dec 31, <br>2019			Sep 30, <br>2019			Jun 30, <br>2019			Mar 31, <br>2019
Results of Operations
Net Premiums Written	$	80.9		$	67.6		$	65.5		$	70.2		$	66.9
Earned Premiums	$	69.3		$	66.6		$	64.2		$	62.3		$	59.7
Net Investment Income	4.0			3.8			3.9			4.3			3.1
Other Income	0.1			—			0.1			0.1			—
Total Revenues	73.4			70.4			68.2			66.7			62.8
Incurred Losses and LAE related to:
Current Year:
Non-catastrophe Losses and LAE	43.8			42.0			41.2			42.2			45.5
Catastrophe Losses and LAE	—			0.5			0.3			0.3			0.1
Prior Years:
Non-catastrophe Losses and LAE	(12.5		)	0.3			(2.3		)	(4.9		)	(3.9		)
Catastrophe Losses and LAE	—			—			—			(0.1		)	0.1
Total Incurred Losses and LAE	31.3			42.8			39.2			37.5			41.8
Insurance Expenses	12.9			12.6			10.8			12.0			10.1
Operating Profit	29.2			15.0			18.2			17.2			10.9
Income Tax Expense	(6.1		)	(5.7		)	(1.7		)	(3.7		)	(2.0		)
Total Product Line Net Operating Income	$	23.1		$	9.3		$	16.5		$	13.5		$	8.9
Ratios Based On Earned Premiums
Current Year Non-catastrophe Losses and LAE Ratio	63.2		%	63.0		%	64.2		%	67.7		%	76.1		%
Current Year Catastrophe Losses and LAE Ratio	—			0.8			0.5			0.5			0.2
Prior Years Non-catastrophe Losses and LAE Ratio	(18.0		)	0.5			(3.6		)	(7.9		)	(6.5		)
Prior Years Catastrophe Losses and LAE Ratio	—			—			—			(0.1		)	0.2
Total Incurred Loss and LAE Ratio	45.2			64.3			61.1			60.2			70.0
Insurance Expense Ratio	18.6			18.9			16.8			19.3			16.9
Combined Ratio	63.8		%	83.2		%	77.9		%	79.5		%	86.9		%
Underlying Combined Ratio ^1^
Current Year Non-catastrophe Losses and LAE Ratio	63.2		%	63.0		%	64.2		%	67.7		%	76.1		%
Insurance Expense Ratio	18.6			18.9			16.8			19.3			16.9
Underlying Combined Ratio	81.8		%	81.9		%	81.0		%	87.0		%	93.0		%
Non-GAAP Measure Reconciliation
Combined Ratio	63.8		%	83.2		%	77.9		%	79.5		%	86.9		%
Less:
Current Year Catastrophe Losses and LAE Ratio	—			0.8			0.5			0.5			0.2
Prior Years Non-catastrophe Losses and LAE Ratio	(18.0		)	0.5			(3.6		)	(7.9		)	(6.5		)
Prior Years Catastrophe Losses and LAE Ratio	—			—			—			(0.1		)	0.2
Underlying Combined Ratio	81.8		%	81.9		%	81.0		%	87.0		%	93.0		%
^1^Underlying Combined Ratio is a non-GAAP measure, which is computed as the difference between three operating ratios: the combined ratio, the effect of catastrophes (excluding development of prior-year catastrophes) on the combined ratio and the effect of prior-year reserve development at the reporting date (including development on prior-year catastrophes) on the combined ratio.

Page 16

Kemper Corporation<br><br>Preferred Property & Casualty Insurance Segment<br><br>Results of Operations and Selected Financial Information<br><br>(Dollars in Millions)<br><br>(Unaudited)
	Three Months Ended
	Mar 31, <br>2020			Dec 31, <br>2019			Sep 30, <br>2019			Jun 30, <br>2019			Mar 31, <br>2019
Results of Operations
Net Premiums Written	$	164.1		$	172.6		$	189.6		$	197.5		$	179.6
Earned Premiums	$	180.9		$	185.2		$	191.0		$	188.5		$	185.6
Net Investment Income	9.7			11.5			12.0			12.3			8.3
Total Revenues	190.6			196.7			203.0			200.8			193.9
Incurred Losses and LAE related to:
Current Year:
Non-catastrophe Losses and LAE	108.5			120.2			121.7			119.1			120.8
Catastrophe Losses and LAE	4.8			11.9			11.9			22.6			16.6
Prior Years:
Non-catastrophe Losses and LAE	(3.3		)	(7.1		)	(1.1		)	(4.3		)	(5.1		)
Catastrophe Losses and LAE	(1.1		)	(3.1		)	(15.4		)	(0.9		)	1.0
Total Incurred Losses and LAE	108.9			121.9			117.1			136.5			133.3
Insurance Expenses	58.7			58.7			59.4			57.9			57.3
Operating Profit (Loss)	23.0			16.1			26.5			6.4			3.3
Income Tax Benefit (Expense)	(4.6		)	(3.3		)	(5.4		)	(1.2		)	(0.5		)
Segment Net Operating Income (Loss)	$	18.4		$	12.8		$	21.1		$	5.2		$	2.8
Ratios Based On Earned Premiums
Current Year Non-catastrophe Losses and LAE Ratio	59.9		%	64.9		%	63.8		%	63.2		%	65.1		%
Current Year Catastrophe Losses and LAE Ratio	2.7			6.4			6.2			12.0			8.9
Prior Years Non-catastrophe Losses and LAE Ratio	(1.8		)	(3.8		)	(0.6		)	(2.3		)	(2.7		)
Prior Years Catastrophe Losses and LAE Ratio	(0.6		)	(1.7		)	(8.1		)	(0.5		)	0.5
Total Incurred Loss and LAE Ratio	60.2			65.8			61.3			72.4			71.8
Insurance Expense Ratio	32.4			31.7			31.1			30.7			30.9
Combined Ratio	92.6		%	97.5		%	92.4		%	103.1		%	102.7		%
Underlying Combined Ratio ^1^
Current Year Non-catastrophe Losses and LAE Ratio	59.9		%	64.9		%	63.8		%	63.2		%	65.1		%
Insurance Expense Ratio	32.4			31.7			31.1			30.7			30.9
Underlying Combined Ratio	92.3		%	96.6		%	94.9		%	93.9		%	96.0		%
Non-GAAP Measure Reconciliation
Combined Ratio as Reported	92.6		%	97.5		%	92.4		%	103.1		%	102.7		%
Less:
Current Year Catastrophe Losses and LAE Ratio	2.7			6.4			6.2			12.0			8.9
Prior Years Non-catastrophe Losses and LAE Ratio	(1.8		)	(3.8		)	(0.6		)	(2.3		)	(2.7		)
Prior Years Catastrophe Losses and LAE Ratio	(0.6		)	(1.7		)	(8.1		)	(0.5		)	0.5
Underlying Combined Ratio	92.3		%	96.6		%	94.9		%	93.9		%	96.0		%
^1^Underlying Combined Ratio is a non-GAAP measure, which is computed as the difference between three operating ratios: the combined ratio, the effect of catastrophes (excluding development of prior-year catastrophes) on the combined ratio and the effect of prior-year reserve development at the reporting date (including development on prior-year catastrophes) on the combined ratio.

Page 17

Kemper Corporation<br><br>Preferred Property & Casualty Insurance Segment<br><br>Results of Operations and Selected Financial Information (continued)<br><br>(Dollars in Millions)<br><br>(Unaudited)
	Mar 31, 2020		Dec 31, 2019		Sep 30, 2019		Jun 30, 2019		Mar 31, 2019
Insurance Reserves:
Preferred Automobile	$	254.8	$	262.3	$	267.3	$	264.5	$	268.0
Homeowners	90.8		95.3		108.8		131.6		133.5
Other Personal	28.8		30.9		32.2		34.0		34.3
Insurance Reserves	$	374.4	$	388.5	$	408.3	$	430.1	$	435.8
Insurance Reserves:
Loss and Allocated LAE Reserves:
Case and Allocated LAE	$	231.1	$	241.3	$	277.8	$	278.5	$	290.2
Incurred but Not Reported	115.1		118.8		100.4		120.2		113.0
Total Loss Reserves	346.2		360.1		378.2		398.7		403.2
Unallocated LAE Reserves	28.2		28.4		30.1		31.4		32.6
Insurance Reserves	$	374.4	$	388.5	$	408.3	$	430.1	$	435.8

Page 18

Kemper Corporation<br><br>Preferred Property & Casualty Insurance Segment<br><br>Preferred Personal Automobile Insurance - Results of Operations and Selected Financial Information<br><br>(Dollars in Millions)<br><br>(Unaudited)
	Three Months Ended
	Mar 31, <br>2020			Dec 31, <br>2019			Sep 30, <br>2019			Jun 30, <br>2019			Mar 31, <br>2019
Results of Operations
Net Premiums Written	$	105.9		$	111.5		$	117.5		$	123.4		$	116.5
Earned Premiums	$	114.9		$	117.2		$	119.7		$	117.9		$	115.4
Net Investment Income	5.8			5.4			5.6			5.8			3.9
Total Revenues	120.7			122.6			125.3			123.7			119.3
Incurred Losses and LAE related to:
Current Year:
Non-catastrophe Losses and LAE	75.9			86.2			83.2			82.9			80.2
Catastrophe Losses and LAE	0.2			1.5			2.1			1.7			2.5
Prior Years:
Non-catastrophe Losses and LAE	2.2			(2.8		)	(0.5		)	(3.7		)	(1.2		)
Catastrophe Losses and LAE	(0.1		)	0.2			(0.1		)	—			(0.1		)
Total Incurred Losses and LAE	78.2			85.1			84.7			80.9			81.4
Insurance Expenses	36.1			36.3			36.8			35.5			35.0
Operating Profit	6.4			1.2			3.8			7.3			2.9
Income Tax Expense	(1.2		)	(0.2		)	(0.7		)	(1.5		)	(0.5		)
Total Product Line Net Operating Income (Loss)	$	5.2		$	1.0		$	3.1		$	5.8		$	2.4
Ratios Based On Earned Premiums
Current Year Non-catastrophe Losses and LAE Ratio	66.1		%	73.5		%	69.5		%	70.3		%	69.4		%
Current Year Catastrophe Losses and LAE Ratio	0.2			1.3			1.8			1.4			2.2
Prior Years Non-catastrophe Losses and LAE Ratio	1.9			(2.4		)	(0.4		)	(3.1		)	(1.0		)
Prior Years Catastrophe Losses and LAE Ratio	(0.1		)	0.2			(0.1		)	—			(0.1		)
Total Incurred Loss and LAE Ratio	68.1			72.6			70.8			68.6			70.5
Insurance Expense Ratio	31.4			31.0			30.7			30.1			30.3
Combined Ratio	99.5		%	103.6		%	101.5		%	98.7		%	100.8		%
Underlying Combined Ratio ^1^
Current Year Non-catastrophe Losses and LAE Ratio	66.1		%	73.5		%	69.5		%	70.3		%	69.4		%
Insurance Expense Ratio	31.4			31.0			30.7			30.1			30.3
Underlying Combined Ratio	97.5		%	104.5		%	100.2		%	100.4		%	99.7		%
Non-GAAP Measure Reconciliation
Combined Ratio	99.5		%	103.6		%	101.5		%	98.7		%	100.8		%
Less:
Current Year Catastrophe Losses and LAE Ratio	0.2			1.3			1.8			1.4			2.2
Prior Years Non-catastrophe Losses and LAE Ratio	1.9			(2.4		)	(0.4		)	(3.1		)	(1.0		)
Prior Years Catastrophe Losses and LAE Ratio	(0.1		)	0.2			(0.1		)	—			(0.1		)
Underlying Combined Ratio	97.5		%	104.5		%	100.2		%	100.4		%	99.7		%
^1^Underlying Combined Ratio is a non-GAAP measure, which is computed as the difference between three operating ratios: the combined ratio, the effect of catastrophes (excluding development of prior-year catastrophes) on the combined ratio and the effect of prior-year reserve development at the reporting date (including development on prior-year catastrophes) on the combined ratio.

Page 19

Kemper Corporation<br><br>Preferred Property & Casualty Insurance Segment<br><br>Homeowners and Other Personal Insurance - Results of Operations and Selected Financial Information<br><br>(Dollars in Millions)<br><br>(Unaudited)
	Three Months Ended
	Mar 31, <br>2020			Dec 31, <br>2019			Sep 30, <br>2019			Jun 30, <br>2019			Mar 31, <br>2019
Results of Operations
Net Premiums Written	$	58.2		$	61.1		$	72.1		$	74.1		$	63.1
Earned Premiums	$	66.0		$	68.0		$	71.3		$	70.6		$	70.2
Net Investment Income	3.9			6.1			6.4			6.5			4.4
Total Revenues	69.9			74.1			77.7			77.1			74.6
Incurred Losses and LAE related to:
Current Year:
Non-catastrophe Losses and LAE	32.6			34.0			38.5			36.2			40.6
Catastrophe Losses and LAE	4.6			10.4			9.8			20.9			14.1
Prior Years:
Non-catastrophe Losses and LAE	(5.5		)	(4.3		)	(0.6		)	(0.6		)	(3.9		)
Catastrophe Losses and LAE	(1.0		)	(3.3		)	(15.3		)	(0.9		)	1.1
Total Incurred Losses and LAE	30.7			36.8			32.4			55.6			51.9
Insurance Expenses	22.6			22.4			22.6			22.4			22.3
Operating Profit (Loss)	16.6			14.9			22.7			(0.9		)	0.4
Income Tax Benefit (Expense)	(3.4		)	(3.1		)	(4.7		)	0.3			—
Total Product Line Net Operating Income (Loss)	$	13.2		$	11.8		$	18.0		$	(0.6	)	$	0.4
Ratios Based On Earned Premiums
Current Year Non-catastrophe Losses and LAE Ratio	49.3		%	50.0		%	54.0		%	51.3		%	57.8		%
Current Year Catastrophe Losses and LAE Ratio	7.0			15.3			13.7			29.6			20.1
Prior Years Non-catastrophe Losses and LAE Ratio	(8.3		)	(6.3		)	(0.8		)	(0.8		)	(5.6		)
Prior Years Catastrophe Losses and LAE Ratio	(1.5		)	(4.9		)	(21.5		)	(1.3		)	1.6
Total Incurred Loss and LAE Ratio	46.5			54.1			45.4			78.8			73.9
Insurance Expense Ratio	34.2			32.9			31.7			31.7			31.8
Combined Ratio	80.7		%	87.0		%	77.1		%	110.5		%	105.7		%
Underlying Combined Ratio ^1^
Current Year Non-catastrophe Losses and LAE Ratio	49.3		%	50.0		%	54.0		%	51.3		%	57.8		%
Insurance Expense Ratio	34.2			32.9			31.7			31.7			31.8
Underlying Combined Ratio	83.5		%	82.9		%	85.7		%	83.0		%	89.6		%
Non-GAAP Measure Reconciliation
Combined Ratio	80.7		%	87.0		%	77.1		%	110.5		%	105.7		%
Less:
Current Year Catastrophe Losses and LAE Ratio	7.0			15.3			13.7			29.6			20.1
Prior Years Non-catastrophe Losses and LAE Ratio	(8.3		)	(6.3		)	(0.8		)	(0.8		)	(5.6		)
Prior Years Catastrophe Losses and LAE Ratio	(1.5		)	(4.9		)	(21.5		)	(1.3		)	1.6
Underlying Combined Ratio	83.5		%	82.9		%	85.7		%	83.0		%	89.6		%
^1^Underlying Combined Ratio is a non-GAAP measure, which is computed as the difference between three operating ratios: the combined ratio, the effect of catastrophes (excluding development of prior-year catastrophes) on the combined ratio and the effect of prior-year reserve development at the reporting date (including development on prior-year catastrophes) on the combined ratio.

Page 20

Kemper Corporation<br><br>Preferred Property & Casualty Insurance Segment<br><br>Homeowners Insurance - Results of Operations and Selected Financial Information<br><br>(Dollars in Millions)<br><br>(Unaudited)
	Three Months Ended
	Mar 31, <br>2020			Dec 31, <br>2019			Sep 30, <br>2019			Jun 30, <br>2019			Mar 31, <br>2019
Results of Operations
Net Premiums Written	$	49.9		$	52.5		$	62.3		$	64.2		$	54.1
Earned Premiums	$	56.8		$	58.7		$	61.5		$	60.8		$	60.3
Net Investment Income	3.6			5.2			5.5			5.6			3.8
Total Revenues	60.4			63.9			67.0			66.4			64.1
Incurred Losses and LAE related to:
Current Year:
Non-catastrophe Losses and LAE	28.7			30.0			34.2			31.6			35.8
Catastrophe Losses and LAE	4.5			10.3			9.3			20.6			13.8
Prior Years:
Non-catastrophe Losses and LAE	(4.3		)	(2.7		)	0.2			0.9			(1.1		)
Catastrophe Losses and LAE	(0.7		)	(3.4		)	(13.6		)	(1.0		)	1.0
Total Incurred Losses and LAE	28.2			34.2			30.1			52.1			49.5
Insurance Expenses	19.5			19.6			19.8			19.7			19.6
Operating Profit (Loss)	12.7			10.1			17.1			(5.4		)	(5.0		)
Income Tax Benefit (Expense)	(2.6		)	(2.1		)	(3.5		)	1.2			1.1
Total Product Line Net Operating Income (Loss)	$	10.1		$	8.0		$	13.6		$	(4.2	)	$	(3.9	)
Ratios Based On Earned Premiums
Current Year Non-catastrophe Losses and LAE Ratio	50.5		%	51.2		%	55.6		%	51.9		%	59.3		%
Current Year Catastrophe Losses and LAE Ratio	7.9			17.5			15.1			33.9			22.9
Prior Years Non-catastrophe Losses and LAE Ratio	(7.6		)	(4.6		)	0.3			1.5			(1.8		)
Prior Years Catastrophe Losses and LAE Ratio	(1.2		)	(5.8		)	(22.1		)	(1.6		)	1.7
Total Incurred Loss and LAE Ratio	49.6			58.3			48.9			85.7			82.1
Insurance Expense Ratio	34.3			33.4			32.2			32.4			32.5
Combined Ratio	83.9		%	91.7		%	81.1		%	118.1		%	114.6		%
Underlying Combined Ratio ^1^
Current Year Non-catastrophe Losses and LAE Ratio	50.5		%	51.2		%	55.6		%	51.9		%	59.3		%
Insurance Expense Ratio	34.3			33.4			32.2			32.4			32.5
Underlying Combined Ratio	84.8		%	84.6		%	87.8		%	84.3		%	91.8		%
Non-GAAP Measure Reconciliation
Combined Ratio	83.9		%	91.7		%	81.1		%	118.1		%	114.6		%
Less:
Current Year Catastrophe Losses and LAE Ratio	7.9			17.5			15.1			33.9			22.9
Prior Years Non-catastrophe Losses and LAE Ratio	(7.6		)	(4.6		)	0.3			1.5			(1.8		)
Prior Years Catastrophe Losses and LAE Ratio	(1.2		)	(5.8		)	(22.1		)	(1.6		)	1.7
Underlying Combined Ratio	84.8		%	84.6		%	87.8		%	84.3		%	91.8		%
^1^Underlying Combined Ratio is a non-GAAP measure, which is computed as the difference between three operating ratios: the combined ratio, the effect of catastrophes (excluding development of prior-year catastrophes) on the combined ratio and the effect of prior-year reserve development at the reporting date (including development on prior-year catastrophes) on the combined ratio.

Page 21

Kemper Corporation<br><br>Preferred Property & Casualty Insurance Segment<br><br>Other Personal Insurance - Results of Operations and Selected Financial Information<br><br>(Dollars in Millions)<br><br>(Unaudited)
	Three Months Ended
	Mar 31, <br>2020			Dec 31, <br>2019			Sep 30, <br>2019			Jun 30, <br>2019			Mar 31, <br>2019
Results of Operations
Net Premiums Written	$	8.3		$	8.6		$	9.8		$	9.9		$	9.0
Earned Premiums	$	9.2		$	9.3		$	9.8		$	9.8		$	9.9
Net Investment Income	0.3			0.9			0.9			0.9			0.6
Total Revenues	9.5			10.2			10.7			10.7			10.5
Incurred Losses and LAE related to:
Current Year:
Non-catastrophe Losses and LAE	3.9			4.0			4.3			4.6			4.8
Catastrophe Losses and LAE	0.1			0.1			0.5			0.3			0.3
Prior Years:
Non-catastrophe Losses and LAE	(1.2		)	(1.6		)	(0.8		)	(1.5		)	(2.8		)
Catastrophe Losses and LAE	(0.3		)	0.1			(1.7		)	0.1			0.1
Total Incurred Losses and LAE	2.5			2.6			2.3			3.5			2.4
Insurance Expenses	3.1			2.8			2.8			2.7			2.7
Operating Profit	3.9			4.8			5.6			4.5			5.4
Income Tax Expense	(0.8		)	(1.0		)	(1.2		)	(0.9		)	(1.1		)
Total Product Line Net Operating Income	$	3.1		$	3.8		$	4.4		$	3.6		$	4.3
Ratios Based On Earned Premiums
Current Year Non-catastrophe Losses and LAE Ratio	42.4		%	43.0		%	43.9		%	46.9		%	48.5		%
Current Year Catastrophe Losses and LAE Ratio	1.1			1.1			5.1			3.1			3.0
Prior Years Non-catastrophe Losses and LAE Ratio	(13.0		)	(17.2		)	(8.2		)	(15.3		)	(28.3		)
Prior Years Catastrophe Losses and LAE Ratio	(3.3		)	1.1			(17.3		)	1.0			1.0
Total Incurred Loss and LAE Ratio	27.2			28.0			23.5			35.7			24.2
Insurance Expense Ratio	33.7			30.1			28.6			27.6			27.3
Combined Ratio	60.9		%	58.1		%	52.1		%	63.3		%	51.5		%
Underlying Combined Ratio ^1^
Current Year Non-catastrophe Losses and LAE Ratio	42.4		%	43.0		%	43.9		%	46.9		%	48.5		%
Insurance Expense Ratio	33.7			30.1			28.6			27.6			27.3
Underlying Combined Ratio	76.1		%	73.1		%	72.5		%	74.5		%	75.8		%
Non-GAAP Measure Reconciliation
Combined Ratio	60.9		%	58.1		%	52.1		%	63.3		%	51.5		%
Less:
Current Year Catastrophe Losses and LAE Ratio	1.1			1.1			5.1			3.1			3.0
Prior Years Non-catastrophe Losses and LAE Ratio	(13.0		)	(17.2		)	(8.2		)	(15.3		)	(28.3		)
Prior Years Catastrophe Losses and LAE Ratio	(3.3		)	1.1			(17.3		)	1.0			1.0
Underlying Combined Ratio	76.1		%	73.1		%	72.5		%	74.5		%	75.8		%
^1^Underlying Combined Ratio is a non-GAAP measure, which is computed as the difference between three operating ratios: the combined ratio, the effect of catastrophes (excluding development of prior-year catastrophes) on the combined ratio and the effect of prior-year reserve development at the reporting date (including development on prior-year catastrophes) on the combined ratio.

Page 22

Kemper Corporation<br><br>Life & Health Insurance Segment<br><br>Results of Operations and Selected Financial Information<br><br>(Dollars in Millions)<br><br>(Unaudited)
	Three Months Ended
	Mar 31, <br>2020			Dec 31, <br>2019			Sep 30, <br>2019			Jun 30, <br>2019			Mar 31, <br>2019
Results of Operations
Earned Premiums	$	163.0		$	160.9		$	160.8		$	162.1		$	159.9
Net Investment Income	51.0			52.0			49.7			53.0			51.7
Other Income	0.1			2.9			2.9			1.6			1.1
Total Revenues	214.1			215.8			213.4			216.7			212.7
Policyholders’ Benefits and Incurred Losses and LAE	100.7			95.0			88.8			113.5			105.4
Insurance Expenses	86.9			85.3			83.6			87.1			78.0
Operating Profit	26.5			35.5			41.0			16.1			29.3
Income Tax Expense	(4.2		)	(6.6		)	(7.6		)	(2.8		)	(6.2		)
Segment Net Operating Income	$	22.3		$	28.9		$	33.4		$	13.3		$	23.1
	Mar 31, <br>2020		Dec 31, <br>2019		Sep 30, <br>2019		Jun 30, <br>2019		Mar 31, <br>2019
---	---	---	---	---	---	---	---	---	---	---
Insurance Reserves:
Future Policyholder Benefits	$	3,397.1	$	3,385.3	$	3,374.6	$	3,362.6	$	3,346.1
Incurred Losses and LAE Reserves:
Life	75.5		89.2		97.0		121.4		127.0
Accident and Health	28.2		27.5		28.1		30.2		28.6
Property	3.1		3.3		3.5		4.2		3.6
Total Incurred Losses and LAE Reserves	106.8		120.0		128.6		155.8		159.2
Insurance Reserves	$	3,503.9	$	3,505.3	$	3,503.2	$	3,518.4	$	3,505.3

Page 23

Kemper Corporation<br><br>Life & Health Insurance Segment<br><br>Life Insurance - Results of Operations and Selected Financial Information<br><br>(Dollars in Millions)<br><br>(Unaudited)
	Three Months Ended
	Mar 31, <br>2020			Dec 31, <br>2019			Sep 30, <br>2019			Jun 30, <br>2019			Mar 31, <br>2019
Results of Operations
Earned Premiums	$	97.2		$	95.6		$	96.2		$	97.0		$	95.8
Net Investment Income	48.7			50.1			47.8			51.0			49.9
Other Income	—			2.7			2.8			1.6			1.0
Total Revenues	145.9			148.4			146.8			149.6			146.7
Policyholders’ Benefits and Incurred Losses and LAE	68.1			65.4			56.0			75.9			72.8
Insurance Expenses	60.3			55.4			53.3			56.7			49.9
Operating Profit	17.5			27.6			37.5			17.0			24.0
Income Tax Expense	(2.3		)	(4.9		)	(7.0		)	(3.0		)	(5.1		)
Total Product Line Operating Income	$	15.2		$	22.7		$	30.5		$	14.0		$	18.9
Kemper Corporation<br><br>Life & Health Insurance Segment<br><br>Accident & Health Insurance - Results of Operations and Selected Financial Information<br><br>(Dollars in Millions)<br><br>(Unaudited)
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
	Three Months Ended
	Mar 31, <br>2020			Dec 31, <br>2019			Sep 30, <br>2019			Jun 30, <br>2019			Mar 31, <br>2019
Results of Operations
Earned Premiums	$	49.4		$	48.5		$	47.6		$	47.9		$	46.9
Net Investment Income	2.0			1.5			1.5			1.5			1.5
Other Income	0.1			0.2			0.1			—			0.1
Total Revenues	51.5			50.2			49.2			49.4			48.5
Policyholders’ Benefits and Incurred Losses and LAE	28.1			25.3			27.6			30.6			26.3
Insurance Expenses	20.1			22.8			22.7			22.4			20.8
Operating Profit (Loss)	3.3			2.1			(1.1		)	(3.6		)	1.4
Income Tax Benefit (Expense)	(0.7		)	(0.5		)	0.3			0.8			(0.3		)
Total Product Line Net Operating Income (Loss)	$	2.6		$	1.6		$	(0.8	)	$	(2.8	)	$	1.1

Page 24

Kemper Corporation<br><br>Life & Health Insurance Segment<br><br>Property Insurance - Results of Operations and Selected Financial Information<br><br>(Dollars in Millions)<br><br>(Unaudited)
	Three Months Ended
	Mar 31, <br>2020			Dec 31, <br>2019			Sep 30, <br>2019			Jun 30, <br>2019			Mar 31, <br>2019
Results of Operations
Earned Premiums	$	16.4		$	16.8		$	17.0		$	17.2		$	17.2
Net Investment Income	0.3			0.4			0.4			0.5			0.3
Total Revenues	16.7			17.2			17.4			17.7			17.5
Incurred Losses and LAE related to:
Current Year:
Non-catastrophe Losses and LAE	4.0			3.8			4.5			4.7			5.1
Catastrophe Losses and LAE	0.8			0.5			0.5			1.8			0.3
Prior Years:
Non-catastrophe Losses and LAE	(0.4		)	(0.1		)	0.1			0.2			0.6
Catastrophe Losses and LAE	0.1			0.1			0.1			0.3			0.3
Total Incurred Losses and LAE	4.5			4.3			5.2			7.0			6.3
Insurance Expenses	6.5			7.1			7.6			8.0			7.3
Operating Profit	5.7			5.8			4.6			2.7			3.9
Income Tax Expense	(1.2		)	(1.2		)	(0.9		)	(0.6		)	(0.8		)
Total Product Line Net Operating Income	$	4.5		$	4.6		$	3.7		$	2.1		$	3.1
Ratios Based On Earned Premiums
Current Year Non-catastrophe Losses and LAE Ratio	24.3		%	22.6		%	26.5		%	27.3		%	29.7		%
Current Year Catastrophe Losses and LAE Ratio	4.9			3.0			2.9			10.5			1.7
Prior Years Non-catastrophe Losses and LAE Ratio	(2.4		)	(0.6		)	0.6			1.2			3.5
Prior Years Catastrophe Losses and LAE Ratio	0.6			0.6			0.6			1.7			1.7
Total Incurred Loss and LAE Ratio	27.4			25.6			30.6			40.7			36.6
Insurance Expense Ratio	39.6			42.3			44.7			46.5			42.4
Combined Ratio	67.0		%	67.9		%	75.3		%	87.2		%	79.0		%
Underlying Combined Ratio ^1^
Current Year Non-catastrophe Losses and LAE Ratio	24.3		%	22.6		%	26.5		%	27.3		%	29.7		%
Insurance Expense Ratio	39.6			42.3			44.7			46.5			42.4
Underlying Combined Ratio	63.9		%	64.9		%	71.2		%	73.8		%	72.1		%
Non-GAAP Measure Reconciliation
Combined Ratio	67.0		%	67.9		%	75.3		%	87.2		%	79.0		%
Less:
Current Year Catastrophe Losses and LAE Ratio	4.9			3.0			2.9			10.5			1.7
Prior Years Non-catastrophe Losses and LAE Ratio	(2.4		)	(0.6		)	0.6			1.2			3.5
Prior Years Catastrophe Losses and LAE Ratio	0.6			0.6			0.6			1.7			1.7
Underlying Combined Ratio	63.9		%	64.9		%	71.2		%	73.8		%	72.1		%
^1^Underlying Combined Ratio is a non-GAAP measure, which is computed as the difference between three operating ratios: the combined ratio, the effect of catastrophes (excluding development of prior-year catastrophes) on the combined ratio and the effect of prior-year reserve development at the reporting date (including development on prior-year catastrophes) on the combined ratio.

Page 25

Kemper Corporation<br><br>Insurance Expenses and Interest and Other Expenses<br><br>(Dollars in Millions)
	Three Months Ended
	Mar 31, <br>2020			Dec 31, <br>2019			Sep 30, <br>2019			Jun 30, <br>2019			Mar 31, <br>2019
Insurance Expenses:
Commissions	$	188.8		$	172.7		$	178.3		$	183.8		$	174.0
General Expenses	70.5			70.4			68.9			75.8			62.9
Premium Taxes	24.8			22.0			22.7			24.1			24.7
Total Costs Incurred	284.1			265.1			269.9			283.7			261.6
Policy Acquisition Costs:
Deferred	(175.4		)	(105.6		)	(119.9		)	(120.9		)	(128.8		)
Amortized	161.6			104.6			104.7			99.2			99.8
Net Policy Acquisition Costs Deferred	(13.8		)	(1.0		)	(15.2		)	(21.7		)	(29.0		)
Amortization of Valuation of Business Acquired ("VOBA")	1.3			1.3			1.3			1.5			2.2
Insurance Expenses	271.6			265.4			256.0			263.5			234.8
Interest and Other Expenses:
Loss from Early Extinguishment of Debt	—			—			5.8			—			—
Interest Expense	7.5			10.0			9.2			11.8			11.5
Other Expenses:
Acquisition Related Transaction, Integration and Other Costs	11.8			6.2			5.4			1.2			5.6
Other	25.2			30.3			23.3			25.0			24.3
Other Expenses	37.0			36.5			28.7			26.2			29.9
Interest and Other Expenses	44.5			46.5			43.7			38.0			41.4
Total Expenses	$	316.1		$	311.9		$	299.7		$	301.5		$	276.2

Page 26

Kemper Corporation<br><br>Details of Investment Performance<br><br>(Dollars in Millions)
	Three Months Ended
	Mar 31, <br>2020			Dec 31, <br>2019			Sep 30, <br>2019			Jun 30, <br>2019			Mar 31, <br>2019
Net Investment Income
Interest on Fixed Income Securities	$	71.0		$	73.9		$	73.5		$	75.6		$	76.4
Dividends on Equity Securities Excluding Alternative Investments	4.3			8.3			5.2			6.9			2.5
Alternative Investments:
Equity Method Limited Liability Investments	1.8			0.4			1.6			2.6			(3.6		)
Limited Liability Investments Included in Equity Securities	3.8			5.1			5.2			5.1			2.6
Total Alternative Investments	5.6			5.5			6.8			7.7			(1.0		)
Short-term Investments	1.6			1.3			2.5			2.6			1.8
Real Estate	2.5			2.7			2.4			2.2			2.5
Loans to Policyholders	5.6			5.7			5.9			5.7			5.3
Other	4.2			0.6			0.6			0.3			—
Total Investment Income	94.8			98.0			96.9			101.0			87.5
Investment Expenses:
Real Estate	2.6			2.4			2.5			2.3			2.4
Other Investment Expenses	6.6			1.7			2.7			2.7			2.4
Total Investment Expenses	9.2			4.1			5.2			5.0			4.8
Net Investment Income	$	85.6		$	93.9		$	91.7		$	96.0		$	82.7
Net Realized Gains (Losses) on Sales of Investments
Fixed Maturities:
Gains on Sales	$	15.9		$	1.4		$	1.9		$	22.7		$	15.1
Losses on Sales	(1.1		)	—			(0.3		)	(1.9		)	(2.6		)
Equity Securities:
Gains on Sales	1.3			1.3			0.2			0.7			3.6
Losses on Sales	(0.2		)	0.1			(0.1		)	(0.2		)	—
Real Estate:
Gains on Sales	0.6			—			—			—			—
Net Realized Gains on Sales of Investments	$	16.5		$	2.8		$	1.7		$	21.3		$	16.1
Net Impairment Losses Recognized in Earnings
Fixed Maturities	$	(10.0	)	$	(1.7	)	$	(1.7	)	$	(6.3	)	$	(3.6	)
Equity Securities	(2.0		)	—			(0.1		)	(0.4		)	—
Net Impairment Losses Recognized in Earnings	$	(12.0	)	$	(1.7	)	$	(1.8	)	$	(6.7	)	$	(3.6	)

Page 27

Kemper Corporation<br><br>Details of Invested Assets<br><br>(Dollars in Millions)<br><br>(Unaudited)
	Mar 31, 2020				Dec 31, 2019				Dec 31, 2018
	Carrying<br><br>Value		Percent<br><br>of Total^1^		Carrying<br><br>Value		Percent<br><br>of Total^1^		Carrying<br><br>Value		Percent<br><br>of Total^1^
Fixed Maturities Reported at Fair Value:
U.S. Government and Government Agencies and Authorities	$	760.6	8.5	%	$	815.9	8.8	%	$	865.7	10.6	%
States and Political Subdivisions	1,529.0		17.1		1,515.8		16.4		1,619.1		19.9
Foreign Governments	5.0		0.1		16.8		0.2		5.9		0.1
Corporate Securities:
Bonds and Notes	3,934.0		44.0		3,859.7		41.7		3,393.8		41.8
Redeemable Preferred Stocks	6.7		0.1		6.7		0.1		—		—
Collaterized Loan Obligations	593.5		6.6		618.2		6.7		524.0		6.4
Other Mortgage- and Asset-backed	169.7		1.9		89.0		1.0		15.7		0.2
Total Fixed Maturities Reported at Fair Value	6,998.5		78.3		6,922.1		74.7		6,424.2		79.0
Equity Securities Reported at Fair Value:
Preferred Stocks	50.8		0.6		59.2		0.6		54.2		0.7
Common Stocks	9.2		0.1		13.2		0.1		10.9		0.1
Other Equity Interests:
Exchange Traded Funds	374.7		4.2		586.8		6.3		427.3		5.3
Limited Liability Companies and Limited Partnerships	275.1		3.1		248.1		2.7		192.0		2.4
Total Equity Securities Reported at Fair Value	709.8		7.9		907.3		9.8		684.4		8.5
Equity Securities Reported at Modified Cost:
Preferred Stocks	9.1		0.1		9.1		0.1		9.2		0.1
Common Stocks	15.3		0.2		12.3		0.1		8.8		0.1
Limited Liability Companies and Limited Partnerships	20.4		0.2		20.5		0.2		23.5		0.3
Total Equity Securities Reported at Modified Cost	44.8		0.5		41.9		0.4		41.5		0.5
Convertible Securities at Fair Value	32.8		0.4		37.3		0.4		31.5		0.4
Equity Method Limited Liability Investments	226.3		2.5		220.4		2.4		187.0		2.3
Short-term Investments at Cost which Approximates Fair Value	166.7		1.9		470.9		5.1		286.1		3.5
Other Investments:
Company Owned Life Insurance	320.4		3.6		217.0		2.3		59.3		0.7
Loans to Policyholders at Unpaid Principal	307.1		3.4		305.6		3.3		300.6		3.7
Real Estate at Depreciated Cost	108.6		1.2		111.4		1.2		114.2		1.4
Mortgage Loans	24.1		0.3		27.5		0.3		—		—
Total Other Investments	760.2		8.5		661.5		7.1		474.1		5.8
Total Investments	$	8,939.1	100.0	%	$	9,261.4	100.0	%	$	8,128.8	100.0	%
^1^ Sum of percentages for individual lines may not equal subtotals and grand total due to rounding.

Page 28

Kemper Corporation<br><br>Details of Invested Assets (continued)<br><br>(Dollars in Millions)<br><br>(Unaudited)
	Mar 31, 2020				Dec 31, 2019				Dec 31, 2018
	Carrying<br><br>Value		Percent<br><br>of Total^1^		Carrying<br><br>Value		Percent<br><br>of Total^1^		Carrying<br><br>Value		Percent<br><br>of Total^1^
S&P Equivalent Rating for Fixed Maturities
AAA, AA, A	$	4,507.8	64.4	%	$	4,387.1	63.4	%	$	4,156.6	64.7	%
BBB	2,058.3		29.4		2,044.1		29.5		1,752.6		27.3
BB, B	274.1		3.9		319.2		4.6		333.7		5.2
CCC or Lower	158.3		2.3		171.7		2.5		181.3		2.8
Total Investments in Fixed Maturities	$	6,998.5	100.0	%	$	6,922.1	100.0	%	$	6,424.2	100.0	%
Duration (in Years)
Total Investments in Fixed Maturities	7.4				7.1				6.2
^1^ Sum of percentages for individual lines may not equal subtotals and grand total due to rounding.

Page 29

Kemper Corporation<br><br>Investment Concentration<br><br>(Dollars in Millions)<br><br>(Unaudited)
	Mar 31, 2020				Dec 31, 2019				Dec 31, 2018
Fair Value of Non-governmental Fixed Maturities by Industry	Amount		Percent<br><br>of Total<br><br>Investments		Amount		Percent<br><br>of Total<br><br>Investments		Amount		Percent<br><br>of Total<br><br>Investments
Finance, Insurance and Real Estate	$	1,598.8	17.9	%	$	1,522.8	16.4	%	$	1,269.3	15.6	%
Manufacturing	1,281.0		14.3		1,356.4		14.6		1,270.0		15.6
Transportation, Communication and Utilities	691.6		7.7		650.2		7.0		449.0		5.5
Services	640.0		7.2		604.4		6.5		516.4		6.4
Retail Trade	243.5		2.7		183.3		2.0		164.8		2.0
Mining	155.7		1.7		154.5		1.7		158.6		2.0
Wholesale Trade	66.1		0.7		72.9		0.8		78.4		1.0
Agriculture, Forestry and Fishing	12.8		0.1		12.4		0.1		13.7		0.2
Other	14.4		0.2		16.6		0.2		13.3		0.2
Total Fair Value of Non-governmental Fixed Maturities	$	4,703.9	52.5	%	$	4,573.5	49.3	%	$	3,933.5	48.5	%
	Mar 31, 2020
---	---	---	---	---
Ten Largest Investment Exposures ^1^	Fair<br><br>Value		Percent<br><br>of Total<br><br>Investments
Fixed Maturities:
States including their Political Subdivisions:
Texas	$	123.7	1.4	%
Georgia	100.0		1.1
Colorado	92.7		1.0
New York	70.0		0.8
Louisiana	67.0		0.7
Michigan	69.5		0.8
California	68.3		0.8
Ohio	55.4		0.6
Washington	53.6		0.6
Pennsylvania	49.1		0.5
Total	$	749.3	8.3	%
^1^	Excluding Investments in U.S. Government and Government Agencies and Authorities at March 31, 2020.
---	---

Page 30

Kemper Corporation<br><br>Municipal Bond Securities<br><br>(Dollars in Millions)<br><br>(Unaudited)
	Mar 31, 2020
	State<br><br>General<br><br>Obligation		Political<br><br>Subdivision<br><br>General<br><br>Obligation		Revenue		Total Fair<br><br>Value		Percent<br><br>of Total<br><br>Muni Bond^1^		Percent<br><br>of Total<br><br>Investments^1^
Texas	$	7.1	$	13.8	$	102.8	$	123.7	8.1	%	1.4	%
Georgia	47.3		6.0		46.7		100.0		6.5		1.1
Colorado	—		11.1		81.6		92.7		6.1		1.0
New York	6.3		8.9		54.8		70.0		4.6		0.8
Michigan	39.4		—		30.1		69.5		4.5		0.8
California	7.0		5.1		56.2		68.3		4.5		0.8
Louisiana	40.8		5.3		20.9		67.0		4.4		0.7
Ohio	6.2		—		49.2		55.4		3.6		0.6
Washington	15.3		—		38.3		53.6		3.5		0.6
Pennsylvania	11.0		2.6		35.5		49.1		3.2		0.5
Virginia	6.9		19.8		15.0		41.7		2.7		0.5
Florida	7.1		—		33.1		40.2		2.6		0.4
Utah	0.6		—		37.6		38.2		2.5		0.4
Indiana	—		—		37.0		37.0		2.4		0.4
Oregon	32.2		—		4.2		36.4		2.4		0.4
Minnesota	—		—		36.4		36.4		2.4		0.4
Massachusetts	2.6		1.5		29.7		33.8		2.2		0.4
New Mexico	—		—		32.8		32.8		2.1		0.4
District Of Columbia	4.6		—		26.1		30.7		2.0		0.3
South Carolina	17.7		1.8		10.6		30.1		2.0		0.3
Wisconsin	15.0		7.3		7.3		29.6		1.9		0.3
Maryland	2.1		8.5		18.4		29.0		1.9		0.3
Connecticut	25.8		—		—		25.8		1.7		0.3
Missouri	—		—		24.5		24.5		1.6		0.3
Illinois	—		—		24.2		24.2		1.6		0.3
Tennessee	3.6		8.0		10.7		22.3		1.5		0.2
Nebraska	—		7.8		14.4		22.2		1.5		0.2
Hawaii	19.7		0.3		—		20.0		1.3		0.2
Arkansas	18.8		—		—		18.8		1.2		0.2
New Jersey	—		—		18.2		18.2		1.2		0.2
Kentucky	—		—		17.1		17.1		1.1		0.2
Rhode Island	4.5		—		11.3		15.8		1.0		0.2
Mississippi	13.1		—		2.5		15.6		1.0		0.2
Alabama	—		—		14.9		14.9		1.0		0.2
Alaska	1.9		3.0		10.0		14.9		1.0		0.2
Arizona	—		0.8		12.6		13.4		0.9		0.1
Iowa	—		—		12.3		12.3		0.8		0.1
Idaho	—		—		12.3		12.3		0.8		0.1
Oklahoma	—		—		11.2		11.2		0.7		0.1
All Other States	4.7		7.2		48.4		60.3		3.9		0.7
Total	$	361.3	$	118.8	$	1,048.9	$	1,529.0	100.0	%	17.1	%
^1^ Sum of percentages for individual lines may not equal total due to rounding.

Page 31

Kemper Corporation<br><br>Investments in Limited Liability<br><br>Companies and Limited Partnerships<br><br>(Dollars in Millions)<br><br>(Unaudited)
	Unfunded<br><br>Commitment		Reported Value
Asset Class	Mar 31, <br>2020		Mar 31, <br>2020		Dec 31, <br>2019
Reported as Equity Method Limited Liability Investments at Cost Plus Cumulative Undistributed Earnings:
Mezzanine Debt	$	56.4	$	132.4	$	129.3
Senior Debt	17.6		20.4		16.0
Distressed Debt	—		19.5		22.7
Secondary Transactions	15.5		12.2		11.5
Leveraged Buyout	—		0.1		0.1
Growth Equity	—		4.3		5.3
Real Estate	—		30.6		29.9
Other	—		6.8		5.6
Total Equity Method Limited Liability Investments	89.5		226.3		220.4
Reported as Other Equity Interests at Fair Value:
Mezzanine Debt	88.6		134.1		126.1
Senior Debt	21.4		36.4		39.5
Distressed Debt	17.3		18.3		16.8
Secondary Transactions	6.8		4.6		4.9
Hedge Funds	—		68.3		48.2
Leveraged Buyout	2.2		4.6		4.4
Other	7.9		8.8		8.2
Total Reported as Other Equity Interests at Fair Value	144.2		275.1		248.1
Reported as Other Equity Interests at Modified Cost:
Mezzanine Debt	—		2.3		1.6
Other	0.1		18.1		18.9
Total Reported as Other Equity Interests at Modified Cost	0.1		20.4		20.5
Total Investments in Limited Liability Companies and Limited Partnerships	$	233.8	$	521.8	$	489.0

Page 32

Kemper Corporation

Definitions of Non-GAAP Financial Measures

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

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

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

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

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

1) Net Realized Gains on Sales of Investments;

2) Impairment Losses;

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

4) Acquisition Related Transaction, Integration and Other Costs;

5) Loss from Early Extinguishment of Debt; and

6) Significant non-recurring or infrequent items that may not be indicative of ongoing operations.

Significant non-recurring items are excluded when (a) the nature of the charge or gain is such that it is reasonably unlikely to recur within two years and (b) there has been no similar charge or gain within the prior two years. The most directly comparable GAAP financial measure is Income (Loss) from Continuing Operations.

The Company believes that Adjusted Consolidated Net Operating Income (Loss) provides investors with a valuable measure of its ongoing performance because it reveals underlying operational performance trends that otherwise might be less apparent if the items were not excluded. Net Realized Gains on Sales of Investments, Impairment Losses related to investments, and Income (Loss) from Change in Fair Value of Equity and Convertible Securities included in the Company’s results may vary significantly between periods and are generally driven by business decisions and external economic developments such as capital market conditions that impact the values of the Company’s investments, the timing of which is unrelated to the insurance underwriting process. Acquisition Related Transaction, Integration and Other Costs may vary significantly between periods and are generally driven by the timing of acquisitions and business decisions which are unrelated to the insurance underwriting process. Loss from Early Extinguishment of Debt is driven by the Company’s financing and refinancing decisions and capital needs, as well as, external economic developments such as debt market conditions, the timing of which is unrelated to the insurance underwriting process. Significant non-recurring items are excluded because, by their nature, they are not indicative of the Company’s business or economic trends.

Page 33

Kemper Corporation

Definitions of Non-GAAP Financial Measures (continued)

A reconciliation of Income from Continuing Operations to Adjusted Consolidated Net Operating Income is presented below:		Three Months Ended
Dollars in Millions (Unaudited)	Mar 31, <br>2020			Dec 31, <br>2019			Sep 30, <br>2019			Jun 30, <br>2019			Mar 31, <br>2019
Income from Continuing Operations	$	64.0		$	124.7		$	129.0		$	122.1		$	155.3
Less Net Income (Loss) From:
Change in Fair Value of Equity and Convertible Securities	(93.1		)	30.9			7.8			20.1			50.9
Net Realized Gains on Sales of Investments	13.0			2.2			1.4			16.8			12.7
Impairment Losses	(9.5		)	(1.3		)	(1.5		)	(5.3		)	(2.8		)
Acquisition Related Transaction, Integration and Other Costs	(9.3		)	(5.0		)	(4.1		)	(1.0		)	(4.4		)
Loss from Early Extinguishment of Debt	—			—			(4.6		)	—			—
Adjusted Consolidated Net Operating Income	$	162.9		$	97.9		$	130.0		$	91.5		$	98.9

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 Income from Continuing Operations Per Unrestricted Share‐basic. A reconciliation of Income from Continuing Operations Per Unrestricted Share-basic to Adjusted Consolidated Net Operating Income Per Unrestricted Share-basic is presented below:

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

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

Page 34

Kemper Corporation

As Adjusted for Acquisition Non-GAAP Financial Measure

As Adjusted for Acquisition amounts are non-GAAP financial measures. For the periods subsequent to acquisition, the three months ended March 31, 2020, December 31, 2019, September 30, 2019, June 30, 2019 and March 31, 2019 the as adjusted amounts are computed by subtracting the impact of purchase accounting adjustments from the comparable consolidated GAAP financial measure reported by Kemper. The Company believes computing and presenting results on an adjusted basis are useful to investors and are used by management to provide meaningful and comparable year-over-year comparisons.

Page 35

Kemper Corporation

As Adjusted for Acquisition - Consolidated Financial Highlights

(Dollars in Millions)

(Unaudited)

	Three Months Ended
	Mar 31, <br>2020			Dec 31, <br>2019			Sep 30, <br>2019			Jun 30, <br>2019			Mar 31, <br>2019
Earned Premiums
Kemper - GAAP As Reported	$	1,166.4		$	1,145.8		$	1,135.2		$	1,116.6		$	1,074.8
Adjusted Consolidated Net Operating Income (Loss)
Kemper	$	162.9		$	97.9		$	130.0		$	91.5		$	98.9
Less: Impact of Purchase Accounting	(4.4		)	(4.4		)	(6.1		)	(4.2		)	2.1
As Adjusted^1^	$	167.3		$	102.3		$	136.1		$	95.7		$	96.8
^1^As Adjusted is a non-GAAP financial measure, which is computed by excluding the impact of purchase accounting and including the historical results of Legacy Kemper and Legacy Infinity in periods prior to the acquisition date of July 2, 2018.

Page 36

Kemper Corporation

Selected Financial Information

As Adjusted for Acquisition - Specialty Property & Casualty Insurance Segment

(Dollars in Millions)

(Unaudited)

	Three Months Ended
	Mar 31, <br>2020			Dec 31, <br>2019			Sep 30, <br>2019			Jun 30, <br>2019			Mar 31, <br>2019
Earned Premiums
Kemper Specialty P&C - GAAP As Reported	$	822.5		$	799.7		$	783.4		$	766.0		$	729.3
Current Year Non-CAT Losses and LAE
Kemper Specialty P&C - GAAP As Reported	$	619.8		$	599.5		$	579.4		$	579.2		$	544.3
Less: Impact of Purchase Accounting
Amortization of Fair Value Adjustment to Infinity's Unpaid Loss and LAE	0.7			0.8			0.8			1.2			1.5
As Adjusted^1^	$	619.1		$	598.7		$	578.6		$	578.0		$	542.8
Insurance Expenses
Kemper Specialty P&C - GAAP As Reported	$	152.1		$	150.7		$	139.2		$	140.9		$	124.8
Less: Impact of Purchase Accounting
Amortization of VOBA	0.6			0.6			0.6			0.8			1.5
Amortization of Estimated Legacy Infinity Deferred Policy Acquisition Costs ("DPAC")	—			—			—			(3.1		)	(12.1		)
Amortization of VOBA, Net of Legacy Infinity DPAC	0.6			0.6			0.6			(2.3		)	(10.6		)
Amortization of Finite Life Intangible Assets Acquired	1.2			1.2			3.3			3.3			3.3
Other	3.4			3.4			3.4			3.4			3.4
Total Purchase Accounting Adjustments	5.2			5.2			7.3			4.4			(3.9		)
As Adjusted^1^	$	146.9		$	145.5		$	131.9		$	136.5		$	128.7
Underlying Combined Ratio^1^
Kemper Specialty P&C Segment	93.9		%	93.8		%	91.8		%	94.0		%	91.7		%
As Adjusted^1^	93.1		%	93.1		%	90.7		%	93.3		%	92.1		%
^1^As Adjusted is a non-GAAP financial measure, which is computed by excluding the impact of purchase accounting in 2018 and including the historical results of Legacy Kemper and Legacy Infinity in periods prior to the acquisition date of July 2, 2018. See page 33.

Page 37

Kemper Corporation

Selected Financial Information

As Adjusted for Acquisition - Specialty Personal Automobile Insurance

(Dollars in Millions)

(Unaudited)

	Three Months Ended
	Mar 31, <br>2020			Dec 31, <br>2019			Sep 30, <br>2019			Jun 30, <br>2019			Mar 31, <br>2019
Earned Premiums
Kemper Specialty Personal Automobile Insurance - GAAP As Reported	$	753.2		$	733.1		$	719.2		$	703.7		$	669.6
Infinity - Prior to Acquisition	—			—			—			—			—
As Adjusted^1^	$	753.2		$	733.1		$	719.2		$	703.7		$	669.6
Current Year Non-CAT Losses and LAE
Kemper Specialty Personal Automobile Insurance	576.0			$	557.5		$	538.2		$	537.0		498.8
Less: Impact of Purchase Accounting
Amortization of Fair Value Adjustment to Infinity's Unpaid Loss and LAE	0.6			0.6			0.6			0.9			1.3
As Adjusted^1^	$	575.4		$	556.9		$	537.6		$	536.1		$	497.5
Insurance Expenses
Kemper Specialty Personal Automobile Insurance - GAAP As Reported	$	139.2		$	138.1		$	128.4		$	128.9		$	114.7
Less: Impact of Purchase Accounting
Amortization of VOBA	0.4			0.4			0.4			0.7			1.3
Amortization of Estimated Legacy Infinity Deferred Policy Acquisition Costs ("DPAC")	—			—			—			(2.8		)	(9.8		)
Amortization of VOBA, Net of Legacy Infinity DPAC	0.4			0.4			0.4			(2.1		)	(8.5		)
Amortization of Finite Life Intangible Assets Acquired	1.1			1.1			3.0			3.0			3.0
Other	3.0			3.0			3.0			3.0			3.0
Total Purchase Accounting Adjustments	4.5			4.5			6.4			3.9			(2.5		)
As Adjusted^1^	$	134.7		$	133.6		$	122.0		$	125.0		$	117.2
Underlying Combined Ratio^1^
Kemper Specialty Personal Automobile Insurance	95.0		%	94.8		%	92.8		%	94.6		%	91.6		%
As Adjusted^1^	94.3		%	94.2		%	91.7		%	93.9		%	91.8		%
^1^As Adjusted is a non-GAAP financial measure, which is computed by excluding the impact of purchase accounting in 2018 and including the historical results of Legacy Kemper and Legacy Infinity in periods prior to the acquisition date of July 2, 2018. See page 33.

Page 38

a1q2020earningscallprese

Exhibit 99.3 First Quarter 2020 Earnings May 7, 2020 Earnings Call Presentation – 1Q 2020

Preliminary Matters Cautionary Statements Regarding Forward-Looking Information This presentation may contain or incorporate by reference information that includes or is based on forward-looking statements within the meaning of the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements give expectations or forecasts of future events and can be identified by the fact that they relate to future actions, performance or results rather than strictly to historical or current facts. Any or all forward-looking statements may turn out to be wrong, and, accordingly, readers are cautioned not to place undue reliance on such statements, which speak only as of the date of this presentation. Forward-looking statements involve a number of risks and uncertainties that are difficult to predict and are not guarantees of future performance. Among the general factors that could cause actual results and financial condition to differ materially from estimated results and financial condition are those factors listed in periodic reports filed by Kemper Corporation with the Securities and Exchange Commission (“SEC”). The COVID-19 outbreak and subsequent global pandemic (“Pandemic”) is an extraordinary event that creates unique uncertainties and risks. Kemper cannot provide any assurances as to the impacts of the Pandemic and related economic conditions on the Company’s operating and financial results. No assurances can be given that the results and financial condition contemplated in any forward-looking statements will be achieved or will be achieved in any particular timetable. Kemper assumes no obligation to publicly correct or update any forward-looking statements as a result of events or developments subsequent to the date of this presentation, including any such statements related to the Pandemic. The reader is advised, however, to consult any further disclosures Kemper makes on related subjects in its filings with the SEC. Non-GAAP Financial Measures This presentation contains non-GAAP financial measures that the company believes are meaningful to investors. Non-GAAP financial measures have been reconciled to the most comparable GAAP financial measure. Earnings Call Presentation – 1Q 2020 2

Commitment to COVID-19 Relief Solid operating model and financial strength enable ongoing commitment to those we serve Focused on three guiding principles: 1. Protect the health and safety of our customers, agents, employees, and partners. 2. Take responsible actions to mitigate risk and “flatten the curve.” 3. Preserve our ability to deliver on our promises to our stakeholders. Customers and Agents Employees Community • Offering flexible payment • Within days, nearly 95% of our • $1 million to organizations options for customers workforce was transitioned to focused on COVID-19 relief: experiencing financial strain due work remotely while upholding ✓ $200k to Feeding America’s to the pandemic. all service levels. COVID-19 Response Fund. • Ensuring health and safety of • Established critical tools and ✓ $200k to Direct Relief’s home service agents and resources to enable improved campaign to provide personal customers by providing remote working. protective equipment and contactless options for premium • Taking additional precautions to essential medical items to payments. protect the health and safety of COVID-19 health workers. • Providing a 15% credit to our in-office employees. ✓ Matching employee auto policyholders toward April • Cleaning offices in accordance contributions up to $100k. and May premiums; totaling with CDC guidelines. approximately $100 million. • Expanded employee assistance ✓ Remaining funds distributed program resources. to organizations supporting COVID relief efforts over 2020. Well-positioned to meet policyholder and shareholder obligations, and weather the COVID-19 storm 3 Earnings Call Presentation – 1Q 2020

Create Long-Term Shareholder Value Leverage competitive advantages to grow returns and BVPS1 over time Diversified sources of earnings; Sustainable competitive Growing returns Strong capital/liquidity advantages and build and book value per positions; core capabilities share over time Disciplined approach to capital management Strategic focus: Consumer-related businesses with opportunities that: • Target niche markets • Have limited, weak or unfocused competition • Require unique expertise (underwriting, claim, distribution, analytics and other) Deliver low double-digit ROE2 over time ¹ Book value per share Earnings Call Presentation – 1Q 2020 2 Return on equity 4

First Quarter 2020 Highlights Operating model and strong balance sheet enable us to be a source of strength for all stakeholders Continued double-digit return on equity and adjusted consolidated net op. EPS growth • Top line remained solid at 9% in the quarter Shareholder • Net income of $64 million and adjusted consolidated net operating income of $163 million Value Creation • Earnings per share of $0.95, on a diluted basis; solid results in a challenging period • Adjusted consolidated net operating EPS1 increased 62% from $1.50 to $2.43 • 11.8% ROAE2 and 19.5% ROAE2, ex. net unrealized gains on fixed maturities and goodwill1 • Strong balance sheet and capital structure with no near-term debt maturities Specialty P&C performance with continued stable L&H results • Specialty P&C written premiums increased by $102 million, or 13%, benefitting from accelerating 1st Quarter and diversified geographic growth, at an underlying combined ratio1 of 93.9% as reported or 93.1%, Operating as adjusted 1 • Preferred segment income increased due to a broad array of profit improvement actions taken in Performance both our auto and home books resulting in lower overall loss activity • Life & Health results continue to provide cash flow and diversification benefits Strong capital position; significant financial flexibility • S&P upgrade of our key financial strength ratings to ‘A’ and holding company senior debt ratings to ‘BBB’ in February is further recognition of improved performance, strong capitalization and stable life Financial Strength earnings • Debt-to-capital ratio of 17.1%; $871 million of available committed contingent liquidity • Repurchased shares worth $110 million, roughly equal to the shares issued upon redemption of the hybrid notes in 2019 and the net CSC judgment fully paid in Q1’20 ¹ Non-GAAP financial measure; please see reconciliation in appendix on pages 23-32 2 Return on average shareholders’ equity (5-point average) Earnings Call Presentation – 1Q 2020 5

First Quarter Highlights Strategy continued to yield strong results As Adjusted As Reported for Acquisition (1) Quarter Ended Quarter Ended Change Change Mar 31, from 1Q’19 Mar 31, from 1Q’19 (Dollars in millions, except per share amounts) 2020 (%) 2020 (%) Net Income $64 (59%) $68 (56%) Adjusted Consolidated Net Operating Income (1) $163 65% $167 72% Per Share Net Income - Diluted $0.95 (61%) $1.02 (56%) Adj. Consolidated Net Operating Income - Diluted (1) $2.43 62% $2.50 69% 69% increase in adjusted consolidated net operating income (adjusted for acquisition) 1 Non-GAAP financial measure; see reconciliation in appendix on page 23-32 Earnings Call Presentation – 1Q 2020 6

Operating Performance Continued to produce strong operating income Three Months Ended, As Reported Mar. 31, Dec. 31, Sep. 30, Jun. 30, Mar. 31, Variance Dollars per Unrestricted Share - Diluted 2020 2019 2019 2019 2019 QoQ Income from Continuing Operations $ 0.95 $ 1.85 $ 1.91 $ 1.84 $ 2.35 (1.40) (Income) Loss from Change in FV of Equity & Convertible Securities 1.39 (0.46) (0.11) (0.30) (0.77) 2.16 Investment Related (Gains)/Losses (0.19) (0.03) (0.02) (0.25) (0.19) - Net Impairment Losses 0.14 0.02 0.02 0.08 0.04 0.10 Acquisition Related Transaction, Integration & Other Costs 0.14 0.07 0.06 0.01 0.07 0.07 Loss from Early Extinguishment of Debt - - 0.07 - - - Adj. Consolidated Net Operating Income1 2.43 1.45 1.93 1.38 1.50 0.93 Sources of Volatility: Income (Loss) After-Tax From: Catastrophes (0.07) (0.19) (0.17) (0.34) (0.21) 0.14 - Prior-year Reserve Development (0.01) 0.18 0.24 0.16 0.26 (0.27) - Alternative Investment Income 0.07 0.07 0.08 0.09 (0.01) 0.08 - Partial Satisfaction of Judgment 1.05 - - 0.24 - 1.05 Sale of Classic Collectors Auto Business - - 0.04 - - - Refinement of CEI Estimate 0.05 0.07 0.18 - - 0.05 Impact of Purchase Accounting (0.07) (0.07) (0.09) (0.06) 0.03 (0.10) Total from Sources of Volatility $ 1.02 $ 0.06 $ 0.28 $ 0.09 $ 0.07 $ 0.95 Results indicate the business continues to perform well with solid financial results ¹ Non-GAAP financial measure; see reconciliation in appendix pages 23-32 Earnings Call Presentation – 1Q 2020 7

Strong Balance Sheet and Capital Position with Ample Liquidity Strong balance sheet with returns and capital generation in excess of long-term targets Strong Parent Company Liquidity Risk-Based Capital Ratios $867 $871 Life & Health P&C¹ (%) (MM) $741 $684 $641 $582 $400 $385 $660 $672 $385 $540 415 430 410 375 355365 350 $341 $299 330 335 290 285 310 $197 $101 $207 $199 2015 2016 2017 2018 2019 1Q20 Borrowings available under credit agreement & from subs 2015 2016 2017 2018 2019 1Q20E HoldCo Cash & Investments ¹Excludes Alliance United Cash Flow from Operating Activities Debt-to-Capital <30% 27.4% 27.6% 21.9% 23.0% (MM) 16.4% 17.1% Debt $539 $538 $215 $241 $241 $62 2015 2016 2017 2018 2019 1Q20 2015 2016 2017 2018 2019 1Q20 Total Capitalization $2.7B $2.7B $2.7B $4.0B $4.8B $4.5B Balance sheet well positioned to meet operating capital and liquidity needs Earnings Call Presentation – 1Q 2020 8

Capital Generation Metrics Operating and financial model built to provide strong growth through economic cycles Total Adjusted Return of BVPS Ex. Unrealized Gains on Fixed Maturities and Goodwill Growth 34% $40.27 $40.70 $38.43 • Mark-to-market $36.46 $33.42 impacts from equity $31.21 $29.66 $31.10 market volatility offset solid operating results 2016 2017 2018 1Q19 2Q19 3Q19 4Q19 1Q20 Book Value Per Share ex. Goodwill and Unrealized¹ Cumulative Dividends Per Share Paid Return on Shareholders’ Equity 24.7% • Return levels remain strong 19.9% 20.3% 19.5% 16.6% • ROATCE measure appropriately captures 11.4% 16.3% 8.0% 13.3% 13.1% 13.1% how investors are 11.4% compensated for 8.3% 1.1% 6.6% intangibles 0.9% 2016 2017 2018 1Q19 2Q19 3Q19 4Q19 1Q20 ROATCE2 ROE ex. Unrealized Gains on Fixed Maturities 3 ¹ Non-GAAP financial measure; please see reconciliation in appendix on pages 23-32 2 Return on average tangible common equity (rolling 5 point avg.); please see reconciliation in appendix on pages 23-32 Earnings Call Presentation – 1Q 2020 9 3 Return on average shareholders equity excluding unrealized gains on fixed maturities (rolling 5 point avg.); please see reconciliation in appendix on pages 23-32

High Quality & Diversified Portfolio with Consistent Returns Stable Net Investment Income 2 Overview • Investment portfolio continues to be well $98 $95 $84 $98 $86 diversified and expected to continue to (MM) $8 $7 $6 meet business requirements through $6 economic cycles • COLI income included in Core Portfolio Net $92 $85 $90 $89 $80 Investment Income and pre-tax equivalent book yield 1Q19 2Q19 3Q19 4Q19 1Q20 Core Portfolio Alternative Inv. Portfolio Diversified & Highly-Rated Portfolio Pre-Tax Equiv. Annualized Book Yield 2 Portfolio Composition Fixed Maturity Ratings Other ≤ CCC Short-term B / BB Alternatives¹ Corporates 9% 2% 4.7% 4.6% Equity¹ 6% 4.2% 4.4% 4.0% 4%2% 5% 29% U.S. 9% 53% BBB 1Q19 2Q19 3Q19 4Q19 1Q20 Gov’t 64% 17% A or Higher States/ • Portfolio creates consistent yields Munis $8.9 Billion $7.0 Billion ¹ Equity securities excludes $269 million of Other Equity Interests of LP/LLC’s that have been reclassified into Alternative Investments Earnings Call Presentation – 1Q 2020 10 2 Please see reconciliation of COLI’s inclusion in net investment income on page 25

Exposure to COVID-19 Impacted Categories (as of 3/31/2020) Fixed income exposure to COVID-19 industry sectors is manageable $120 1.54% 1.6% $100 1.4% 1.2% $80 0.92% 1.0% 0.86% $60 0.73% $108 0.8% 0.54% $40 0.6% $ Amount (MM) $ Amount $64 $60 0.35% 0.34% $51 0.31% 0.29% 0.4% $20 $38 0.07% 0.05% 0.01% Portfolio Maturity % Fixed of $25 0.13% 0.02% 0.2% $24 $22 $21 $5 $9 $3 $1 $0 $1 0.0% Exposure to COVID-19 sectors is well diversified across high quality assets; Less than 1% of fixed maturity portfolio are in COVID-19 sectors as high yield Earnings Call Presentation – 1Q 2020 11

Fixed Maturities Below Investment Grade Portfolio of $433 Million Below investment grade portfolio is diversified across different asset types $180 2.5% 2.31% $160 2.0% $140 $120 1.58% 1.5% $100 1.07% $80 $162 G $ Amount (MM) $ GAmount - 1.0% $60 $111 0.69% Below I % of Fixed Maturity Portfolio Maturity % Fixed of $40 $75 0.5% 0.33% $20 $48 0.06% 0.11% $23 0.01% $4 $1 $0 $8 0.0% Private Private CLO Public Munis Private Foreign Non-Agency Senior Junior Corp Corp Government MBS Below investment grade portfolio represents roughly 5% of our fixed maturities portfolio Earnings Call Presentation – 1Q 2020 12

Composition of $594 Million CLO Holdings (as of 3/31/2020) CLOs represent 7% of investment holdings $450 80.0% 69.3% $400 70.0% $350 60.0% $300 50.0% $250 40.0% $411 $ Amount (MM) $ Amount $200 % of CLO %Portfolio CLO of 30.0% $150 20.0% $100 14.2% 11.6% $50 10.0% $84 $69 2.3% 2.7% $0 $14 $16 0.0% AAA AA A BBB High Yield Well-diversified CLO book with 83% of holdings classified ‘A’ or higher Earnings Call Presentation – 1Q 2020 13

Alternative Investment Portfolio of $522 Million (as of 3/31/2020) Portfolio is highly diversified with strategies focused on private credit, private equity and hedge funds Private Credit 4% of total investments (65% of Alts portfolio) $68.3 Consists of 100+ funds and investments with over 1,800 underlying portfolio companies Private Equity ~ 1% of total investments (22% of Alts portfolio) $115.4 Consists of 70+ funds and investments with over $338.1 350+ underlying portfolio companies Hedge Funds < 1% of total investments (13% of Alts portfolio) Diversified in strategies with focus on minimum correlation to public markets and additional liquidity relative to Private Credit and Private Equity strategies Private Credit Private Equity Hedge Funds Alternative investment portfolio is 6% of total investments and diversified across underlying investment strategies with primary focus on current income generation Earnings Call Presentation – 1Q 2020 14

Specialty Property & Casualty Insurance Segment1 Solid Specialty P&C growth with strong margins and continued geographic expansion Key Highlights Written Premium Population CAGR State Groupings TTM Growth ’16-’19 Est. ’20-’30 • 9.5% growth in policies in-force, or 10% excluding ($ million) y/o/y Classic Collectors, compared to 1Q’19; California $2,023 6% 0.3% 0.8% • Growth is 50 basis points higher than 4Q’19 Florida / Texas $752 23% 1.3% 1.6% • As adj. underlying combined ratio of 93.1% Expansion States $188 43% 1.0% 1.1% • Prior period development driven by updated view Other $53 - 0.3% 0.4% on salvage and total loss claims based on current Total $3,016 12% economic environment and a one-time legal item US 0.6% • Long-term growth outlook remains strong, but Hispanic 1.6% COVID-19 creates timing uncertainty Key Metrics Change Underlying Combined Ratio¹ ($ in millions) 1Q’20 to 1Q’19 (%) Earned Premiums $823 12.8% U/L Loss & LAE Ratio2 75.3% 90 bps 93.1 93.1 93.1 93.3 U/L Expense Ratio2 17.9% 30 bps 92.1 92.7 92.3 92.1 90.7 Policies In-Force (000) 1,914 9.5% 92.0 Policies In-Force ex. Classic Collectors (000) 1,879 10% 1Q19 2Q19 3Q19 4Q19 1Q20 QTD YTD Strength of franchise continues to create value for policyholders and shareholders ¹ As adjusted2, including legacy Infinity in all prior periods 2 Non-GAAP financial measure; see reconciliation in appendix on pages 23-32 ; excludes impact of purchase accounting Earnings Call Presentation – 1Q 2020 15 Population growth sources include U.S. Census Bureau and The Association Institute

Preferred Property & Casualty Insurance Segment Efforts to bring the Preferred segment to target profitability are ongoing Key Highlights • Underlying combined ratio decreased 370 basis points to 92.3% for the quarter - Auto underlying loss ratio improvement driven by a broad array of profit improvement actions; overall the underlying combined ratio improved 220 basis points to 97.5% compared with the previous year’s quarter - Home & Other underlying combined ratio improvement driven by a decrease in overall loss activity in the quarter Key Metrics Change ($ in millions) 1Q’20 to 1Q’19 Underlying Combined Ratio¹ Home & Other 104.5 (%) 99.7 100.4 100.2 97.5 Earned Premiums $66 (0.4%) 89.6 85.7 83.5 83.0 82.9 Policies In-Force (000) 242 (6.0%) Auto Earned Premiums $115 0.4% 1Q19 2Q19 3Q19 4Q19 1Q20 Policies In-Force (000) 212 (7.3%) Auto Home & Other Focused efforts to reposition the business continue ¹ Non-GAAP financial measure; please see reconciliation in appendix on pages 23-32 Earnings Call Presentation – 1Q 2020 16

Life & Health Insurance Segment Life & Health Segment impacted by COVID-related items Key Highlights • Earned premiums grew 1.9% driven by continued focus on enhancements to distribution capabilities and process improvements • Net operating income impacted by pressure in global equity markets impacting net investment income, and one- time COVID-19 related-items (new sales disruption and agent commissions), offset by a refinement of CEI estimate Revenues1 Key Metrics Change ($ in millions) 1Q’20 to 1Q’19 $213 $216 $213 $214 $214 L&H (MM) $53 $54 $52 $53 $51 Net Operating Income $22.3 (3.4%) Life $160 $162 $161 $161 $163 Face Value of In-Force $19,771 0.1% Policies In-Force (000) 3,424 (3.1%) 1Q19 2Q19 3Q19 4Q19 1Q20 Earned Premiums Net Investment Income Provides diversified cash flow generation ¹ Excludes other income 2 Please see reconciliation of COLI’s inclusion in net investment income on page 25 Earnings Call Presentation – 1Q 2020 17

COVID-19 Considerations Evolving backdrop with continued volatility Specialty and Preferred Auto Business • Premium volumes to be impacted by lower new business; 15% credit for auto policyholders in April and May • Loss costs impacted by meaningful drop in frequency, likely offset by severity deterioration to a degree • Modest expense ratio pressure due to increases in bad debt and lower premium and fee volumes Life Business • New business sales suspended late March, expect gradual resumption to begin in second quarter • At this point, no meaningful information on changes to mortality and morbidity expectations Strong Capital and Liquidity Position • Strong balance sheet to weather the storm with additional contingent and committed facilities supported by systemically important institutions • No near-term or upcoming debt maturities, low fixed obligations and debt-to-capital ratio • Solid operating model to meet the needs of all of our stakeholders • High quality, well-diversified investment portfolio expected to perform through economic cycles Sound balance sheet and operating model are a source of strength for our stakeholders Earnings Call Presentation – 1Q 2020 18

Appendix Earnings Call Presentation – 1Q 2020 19

A Leading Specialized Insurer Taking advantage of a diversified portfolio of niche businesses…. Founded in 1990 and headquartered in Chicago, with subsidiaries writing policies since 1911 ~$13B ~6.4M ~30,000 ~9,100 Assets Policies Agents/Brokers Employees Specialty P&C insurance providing Preferred personal lines insurance Life and health insurance personal and commercial providing preferred automobile, providing life, supplemental automobile insurance products homeowners and other personal benefits, and other property insurance products insurance products ….to create value for all our stakeholders Earnings Call Presentation – 1Q 2020 20

Capital Deployment Priorities Dedicated to being good stewards of capital 1. Investment in the business • Fund profitable organic growth at appropriate risk-adjusted returns • Strategic investments and acquisitions that enhance the business and meet or exceed our ROE targets over time 2. Return capital to shareholders • Repurchase shares opportunistically • Maintain competitive dividends Management and capital deployment priorities focused on maximizing shareholder value Earnings Call Presentation – 1Q 2020 21

2020 Reinsurance Program Both programs were renewed with no significant change Catastrophe Reinsurance Program (Multi-Year) Aggregate Catastrophe Program • Same coverage as 2019 program 1-Year Term Placed 1/1/20 • Intended to reduce volatility from high- $25M xs $250M 95% Placed frequency, low severity events • Coverage 3-Year Term 3-Year Term 3-Year Term – $50 million in excess of $60 million Placed 1/1/18 Placed 1/1/19 Placed 1/1/20 5% Retention – $500k deductible per storm $100M xs $150M $100M xs $150M $100M xs $150M – Perils: All perils, excluding named storms 31.67% Placed 31.67% Placed 31.67% Placed (e.g., hurricanes) and earthquakes of $225M $225M of – Covered Line: Property, Fire and Dwelling Retention 3-Year Term 3-Year Term 3-Year Term xs Placed 1/1/18 Placed 1/1/19 Placed 1/1/20 $50M 2020 Aggregate Catastrophe $100M xs $50M $100M xs $50M $100M xs $50M Reinsurance Program 31.67% Placed 31.67% Placed 31.67% Placed Retention 100% of first $50M • Policy placed at 1/1/20 similar to prior three years • Total coverage: 95% of $225 million excess of $50 million Earnings Call Presentation – 1Q 2020 22

Non-GAAP Financial Measures Book Value Per Share Excluding Net Unrealized Gains on Fixed Maturities is a ratio that uses a non-GAAP financial measure. It is calculated by dividing shareholders’ equity after excluding the after-tax impact of net unrealized gains on fixed income securities by total Common Shares Issued and Outstanding. Book value per share is the most directly comparable GAAP financial measure. The Company uses the trend in book value per share, excluding the after-tax impact of net unrealized gains on fixed income securities in conjunction with book value per share to identify and analyze the change in net worth attributable to management efforts between periods. The Company believes the non-GAAP financial measure is useful to investors because it eliminates the effect of items that can fluctuate significantly from period to period and are generally driven by economic developments, primarily capital market conditions, the magnitude and timing of which are generally not influenced by management. The Company believes it enhances understanding and comparability of performance by highlighting underlying business activity and profitability drivers. Book Value Per Share Excluding Net Unrealized Gains on Fixed Maturities and Goodwill is a calculation that uses a non-GAAP financial measure. It is calculated by dividing shareholders’ equity after excluding the after-tax impact of net unrealized gains on fixed income securities and goodwill by total Common Shares Issued and Outstanding. Book value per share is the most directly comparable GAAP financial measure. The Company uses the trends in book value per share excluding the after-tax impact of net unrealized gains on fixed income securities and goodwill in conjunction with book value per share to identify and analyze the change in net worth excluding goodwill attributable to management efforts between periods. The Company believes the non-GAAP financial measure is useful to investors because it eliminates the effect of items that can fluctuate significantly from period to period and are generally driven by economic developments, primarily capital market conditions, the magnitude and timing of which are not influenced by management. The Company believes it enhances understanding and comparability of performance by highlighting underlying business activity and profitability drivers. For the Periods Ended 1Q'20 4Q'19 3Q'19 2Q'19 1Q'19 2018 2017 2016 Book Value Per Share $ 57.54 $ 59.59 $ 58.43 $ 55.34 $ 51.13 $ 47.10 $ 41.11 $ 38.52 Less: Net Unrealized Gains on Fixed Maturities Per Share (4.01) (6.51) (6.92) (5.52) (3.72) (1.70) (5.54) (3.52) Book Value Per Share Excluding Net Unrealized Gains on Fixed Maturities $ 53.53 $ 53.08 $ 51.51 $ 49.82 $ 47.41 $ 45.40 $ 35.57 $ 35.00 Less: Goodwill (17.04) (16.72) (16.71) (16.74) (17.12) (17.18) (6.28) (6.30) Book Value Per Share Excluding Net Unrealized Gains on Fixed Maturities and Goodwill $ 36.49 $ 36.36 $ 34.80 $ 33.08 $ 30.29 $ 28.22 $ 29.29 $ 28.70 Earnings Call Presentation – 1Q 2020 23

Non-GAAP Financial Measures Return on Equity For the Periods Ended 1Q'20 4Q'19 3Q'19 2Q'19 1Q'19 2018 2017 2016 Rolling 12 Month Return on Average Shareholders' Equity (5 Point Avg) 11.8% 14.8% 12.1% 12.4% 10.8% 7.7% 5.9% 0.8% Less: Net Unrealized Gains on Fixed Maturities 1.2% 1.5% 1.0% 0.9% 0.6% 0.6% 0.7% 0.1% Rolling 12 Month Return on Average Shareholders' Equity Excluding Net Unrealized Gains on Fixed Maturities (5 Point Avg) 13.0% 16.3% 13.1% 13.3% 11.4% 8.3% 6.6% 0.9% Less: Goodwill 6.5% 8.4% 7.2% 6.6% 5.2% 3.1% 1.4% 0.2% Rolling 12 Month Return on Average Shareholders' Equity Excluding Net Unrealized Gains on Fixed Maturities and Goodwill (5 Point Avg) 19.5% 24.7% 20.3% 19.9% 16.6% 11.4% 8.0% 1.1% Earnings Call Presentation – 1Q 2020 24

Non-GAAP Financial Measures Reconciliation of COLI investment into Net Investment Income For the Periods Ended 4Q'19 3Q'19 2Q'19 1Q'19 Reported Net Investment Income $ 93.9 $ 91.7 $ 96.0 $ 82.7 COLI Investment Income $ 3.6 $ 3.6 $ 1.5 $ 1.3 Total Adjusted Net Investment Income $ 97.5 $ 95.3 $ 97.5 $ 84.0 Reported Pre-Tax Equivalent Book Yield 4.5% 4.4% 4.7% 4.2% COLI Pre-Tax Equivalent Book Yield 0.1% 0.1% 0.0% 0.0% Total Pre-Tax Equivalent Book Yield 4.6% 4.6% 4.7% 4.2% Reported Life and A&H Net Investment Income $ 52.0 $ 49.7 $ 53.0 $ 51.7 Life and A&H COLI Investment Income $ 2.7 $ 2.8 $ 1.6 $ 1.0 Total Adjusted Life and A&H Net Investment Income $ 54.7 $ 52.5 $ 54.6 $ 52.7 Earnings Call Presentation – 1Q 2020 25

Non-GAAP Financial Measures Adjusted Consolidated Net Operating Income (Loss) is an after-tax, non-GAAP financial measure computed by excluding from Income (Loss) from Continuing Operations the after-tax impact of 1) income (loss) from change in fair value of equity and convertible securities, 2) net realized gains on sales of investments, 3) impairment losses related to investments, 4) acquisition related transaction, integration and other costs, 5) loss from early extinguishment of debt and 6) significant non-recurring or infrequent items that may not be indicative of ongoing operations. Significant non-recurring items are excluded when (a) the nature of the charge or gain is such that it is reasonably unlikely to recur within two years and (b) there has been no similar charge or gain within the prior two years. The most directly comparable GAAP financial measure is Income (Loss) from Continuing Operations. Kemper believes that Adjusted Consolidated Net Operating Income (Loss) provides investors with a valuable measure of its ongoing performance because it reveals underlying operational performance trends that otherwise might be less apparent if the items were not excluded. Income (loss) from change in fair value of equity and convertible securities, net realized gains on sales of investments and impairment losses recognized in earnings related to investments included in the Company’s results may vary significantly between periods and are generally driven by business decisions and external economic developments such as capital market conditions that impact the values of the Company’s investments, the timing of which is unrelated to the insurance underwriting process. Loss from early extinguishment of debt is driven by the Company’s financing and refinancing decisions and capital needs, as well as external economic developments such as debt market conditions, the timing of which is unrelated to the insurance underwriting process. Acquisition related transaction, integration and other costs may vary significantly between periods and are generally driven by the timing of acquisitions and business decisions which are unrelated to the insurance underwriting process. Significant non-recurring items are excluded because, by their nature, they are not indicative of the Company’s business or economic trends. Earnings Call Presentation – 1Q 2020 26

Non-GAAP Financial Measures Diluted Adjusted Consolidated Net Operating Income (Loss) Per Unrestricted Share is a non-GAAP financial measure computed by dividing Adjusted Consolidated Net Operating Income (Loss) attributed to unrestricted shares by the weighted-average unrestricted shares and equivalent shares outstanding. The most directly comparable GAAP financial measure is Diluted Income (Loss) from Continuing Operations Per Unrestricted Share. Kemper believes that Diluted Adjusted Consolidated Net Operating Income (Loss) Per Unrestricted Share provides investors with a valuable measure of its ongoing performance because it reveals underlying operational performance trends that otherwise might be less apparent if the items were not excluded. Income from change in fair value of equity and convertible securities, net realized gains on sales of investments, impairment losses related to investments, and acquisition related transaction, integration and other costs included in Kemper’s results may vary significantly between periods and are generally driven by business decisions and external economic developments such as capital market conditions that impact the values of the company’s investments, the timing of which is unrelated to the insurance underwriting process. For the Three Months Ended Per Unrestricted Share 1Q20 4Q19 3Q19 2Q19 1Q19 Income from Continuing Operations - Diluted $ 0.95 $ 1.85 $ 1.98 $ 1.84 $ 2.35 Net (Income) Loss From: Change in Fair Value of Equity & Convertible Securities 1.39 (0.45) (0.12) (0.30) (0.77) Net Realized Gains on Sales of Investments (0.19) (0.03) (0.02) (0.25) (0.19) Impairment Losses 0.14 0.02 0.02 0.08 0.04 Acquisition Related Transaction, Integration and Other Costs 0.14 0.07 0.06 0.01 0.07 Loss from Early Extinguishment of Debt - - 0.07 - - Adj. Consolidated Net Operating Income - Diluted $ 2.43 $ 1.46 $ 1.92 $ 1.38 $ 1.50 Earnings Call Presentation – 1Q 2020 27

Non-GAAP Financial Measures Underlying Combined Ratio is a non-GAAP financial measure. It is computed by adding the Current Year Non-catastrophe Losses and LAE Ratio with the Insurance Expense Ratio. The most directly comparable GAAP financial measure is the Combined Ratio, which is computed by adding total incurred losses and LAE, including the impact of catastrophe losses and loss and LAE reserve development from prior years, with the Insurance Expense Ratio. Kemper believes the underlying combined ratio is useful to investors and is used by management to reveal the trends in the Company’s property and casualty insurance businesses that may be obscured by catastrophe losses and prior-year reserve development. These catastrophe losses cause loss trends to vary significantly between periods as a result of their incidence of occurrence and magnitude, and can have a significant impact on the combined ratio. Prior-year reserve developments are caused by unexpected loss development on historical reserves. Because reserve development relates to the re-estimation of losses from earlier periods, it has no bearing on the performance of our insurance products in the current period. The Company believes it is useful for investors to evaluate these components separately and in the aggregate when reviewing the Company’s underwriting performance. The underlying combined ratio should not be considered a substitute for the combined ratio and does not reflect the overall underwriting profitability of our business. Earnings Call Presentation – 1Q 2020 28

Non-GAAP Financial Measures Underlying Combined Ratio – Continued For the Three Months Ended 1Q20 4Q19 3Q19 2Q19 1Q19 Specialty P&C Insurance Combined Ratio as Reported 94.6% 93.8% 91.6% 93.5% 89.3% Current Year Catastrophe Loss and LAE Ratio 0.0% (0.5%) (0.3%) (0.6%) (0.1%) Prior Years Non-Catastrophe Losses and LAE (0.6%) 0.5% 0.5% 1.1% 2.5% Prior Years Catastrophe Losses and LAE Ratio 0.0% 0.0% 0.0% 0.0% 0.0% Underlying Combined Ratio 93.9% 93.8% 91.8% 94.0% 91.7% Preferred P&C Insurance Combined Ratio as Reported 92.6% 97.5% 92.4% 103.1% 102.7% Current Year Catastrophe Loss and LAE Ratio (2.7%) (6.4%) (6.2%) (12.0%) (8.9%) Prior Years Non-Catastrophe Losses and LAE 1.8% 3.8% 0.6% 2.3% 2.7% Prior Years Catastrophe Losses and LAE Ratio 0.6% 1.7% 8.1% 0.5% (0.5%) Underlying Combined Ratio 92.3% 96.6% 94.9% 93.9% 96.0% Preferred Auto Combined Ratio as Reported 99.5% 103.6% 101.5% 98.7% 100.8% Current Year Catastrophe Loss and LAE Ratio (0.2%) (1.3%) (1.8%) (1.4%) (2.2%) Prior Years Non-Catastrophe Losses and LAE (1.9%) 2.4% 0.4% 3.1% 1.0% Prior Years Catastrophe Losses and LAE Ratio 0.1% (0.2%) 0.1% 0.0% 0.1% Underlying Combined Ratio 97.5% 104.5% 100.2% 100.4% 99.7% Preferred Home & Other Combined Ratio as Reported 80.7% 87.0% 77.1% 110.5% 105.7% Current Year Catastrophe Loss and LAE Ratio (7.0%) (15.3%) (13.7%) (29.6%) (20.1%) Prior Years Non-Catastrophe Losses and LAE 8.3% 6.3% 0.8% 0.8% 5.6% Prior Years Catastrophe Losses and LAE Ratio 1.5% 4.9% 21.5% 1.3% (1.6%) Underlying Combined Ratio 83.5% 82.9% 85.7% 83.0% 89.6% Earnings Call Presentation – 1Q 2020 29

Non-GAAP Financial Measures As Adjusted for Acquisition amounts are non-GAAP financial measures. For the three months ended September 30, 2019, as adjusted amounts are computed by subtracting the impact of purchase accounting adjustments from the comparable consolidated GAAP financial measure reported by Kemper. For the three months ended September 30, 2018, as adjusted amounts are computed by adding the historical results of Infinity reported on a GAAP basis to the comparable consolidated GAAP financial measure reported by Kemper. The Company believes computing and presenting results on an adjusted basis are useful to investors and are used by management to provide meaningful and comparable year-over-year comparisons. Three Months Ended 31-Mar-20 31-Mar-19 Net Income Kemper - GAAP As Reported $ 64.0 $ 155.3 Less: Impact of Purchase Accounting (4.4) 2.1 As Adjusted 1 $ 68.4 $ 153.2 As Adjusted 1 - Per Diluted Share $ 1.02 $ 2.32 Adjusted Consolidated Net Operating Income (Loss)1 Kemper $ 162.9 $ 98.9 Less: Impact of Purchase Accounting (4.4) 2.1 As Adjusted 1 $ 167.3 $ 96.8 As Adjusted 1 - Per Diluted Share $ 2.50 $ 1.46 Earnings Call Presentation – 1Q 2020 30

Non-GAAP Financial Measures As Adjusted for Acquisition – Continued Specialty P&C Insurance Segment Three Months Ended 31-Mar-20 31-Dec-19 30-Sep-19 30-Jun-19 31-Mar-19 Earned Premiums Kemper Specialty P&C - GAAP As Reported $ 822.5 $ 799.7 $ 783.4 $ 766.0 $ 729.3 Current Year Non-CAT Losses and LAE Kemper Specialty P&C - GAAP As Reported $ 619.8 $ 599.5 $ 579.4 $ 579.2 $ 544.3 Less: Impact of Purchase Accounting Amortization of Fair Value Adjustment to Infinity's Unpaid Loss and LAE 0.7 0.8 0.8 1.2 1.5 As Adjusted 1 $ 619.1 $ 598.7 $ 578.6 $ 578.0 $ 542.8 Insurance Expenses Kemper Specialty P&C - GAAP As Reported $ 152.1 $ 150.7 $ 139.2 $ 140.9 $ 124.8 Less: Impact of Purchase Accounting 5.2 5.2 7.3 4.4 (3.9) As Adjusted 1 $ 146.9 $ 145.5 $ 131.9 $ 136.5 $ 128.7 As Adjusted 1 Underlying Combined Ratio As Adjusted 1 Underlying Loss & LAE Ratio 75.3% 74.9% 73.9% 75.5% 74.4% As Adjusted 1 Expense Ratio 17.9% 18.2% 16.8% 17.8% 17.6% As Adjusted 1 Underlying Combined Ratio 93.1% 93.1% 90.7% 93.3% 92.1% ¹ As Adjusted is a non-GAAP measure, which is comprised by excluding impact of purchase accounting in 2018 and including historical results of Kemper and Infinity in periods prior to acquisition date of July 2, 2018. Earnings Call Presentation – 1Q 2020 31

Non-GAAP Financial Measures As Adjusted for Acquisition – Continued Specialty Personal Automobile Insurance Three Months Ended 31-Mar-20 31-Dec-19 30-Sep-19 30-Jun-19 31-Mar-19 Earned Premiums Kemper Specialty Auto - GAAP As Reported $ 753.2 $ 733.1 $ 719.2 $ 703.7 $ 669.6 Current Year Non-CAT Losses and LAE Kemper Specialty Auto - GAAP As Reported $ 576.0 $ 557.5 $ 538.2 $ 537.0 $ 498.8 Less: Impact of Purchase Accounting Amortization of Fair Value Adjustment to Infinity's Unpaid Loss and LAE 0.6 0.6 0.6 0.9 1.3 As Adjusted 1 $ 575.4 $ 556.9 $ 537.6 $ 536.1 $ 497.5 Insurance Expenses Kemper Specialty Auto - GAAP As Reported $ 139.2 $ 138.1 $ 128.4 $ 128.9 $ 114.7 Less: Impact of Purchase Accounting 4.5 4.5 6.4 3.9 (2.5) As Adjusted 1 $ 134.7 $ 133.6 $ 122.0 $ 125.0 $ 117.2 As Adjusted 1 Underlying Combined Ratio As Adjusted 1 Underlying Loss & LAE Ratio 76.4% 76.0% 74.7% 76.2% 74.3% As Adjusted 1 Expense Ratio 17.9% 18.2% 17.0% 17.8% 17.5% As Adjusted 1 Underlying Combined Ratio 94.3% 94.2% 91.7% 93.9% 91.8% ¹ As Adjusted is a non-GAAP measure, which is comprised by excluding impact of purchase accounting in 2018 and including historical results of Kemper and Infinity in periods prior to acquisition date of July 2, 2018. Earnings Call Presentation – 1Q 2020 32