kmpr-20220131
0000860748false00008607482022-01-312022-01-31

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): January 31, 2022 
Kemper Corporation
(Exact name of registrant as specified in its charter)
 
Commission File Number: 001-18298
 
DE 95-4255452
(State or other jurisdiction
of incorporation)		 (IRS Employer
Identification No.)
200 E. Randolph Street, Suite 3300, Chicago, IL 60601
(Address of principal executive offices, including zip code)
312-661-4600
(Registrant’s telephone number, including area code)
(Former name or former address, if changed since last report)
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the Registrant under any of the following provisions (see General Instruction A.2.below):
☐Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

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

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


Section 2. – Financial Information
Item 2.02.Results of Operations and Financial Condition.
On January 31, 2022, Kemper Corporation ("Kemper" or the "Registrant") issued a press release announcing its financial results for the fourth quarter of 2021 and the availability of Kemper’s fourth 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 January 31, 2022.
99.2 Fourth Quarter 2021 Investor Supplement of Kemper Corporation.
99.3 Fourth Quarter 2021 Earnings Call Presentation.


SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
  Kemper Corporation
Date:January 31, 2022/s/    JAMES J. MCKINNEY
 James J. McKinney
 Executive Vice President and Chief Financial Officer (principal financial officer)


Exhibit 99.1
 

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

Press Release
Kemper Reports Fourth Quarter 2021 Operating Results
CHICAGO, January 31, 2022 — Kemper Corporation (NYSE: KMPR) reported net loss of $105.8 million, or $(1.66) per diluted share, for the fourth quarter of 2021, compared to net income of $97.5 million, or $1.46 per diluted share, for the fourth quarter of 2020. As Adjusted for Acquisitions1 of American Access Casualty Company (“AAC”) and Infinity Property and Casualty Corporation, net loss was $101.3 million, or $(1.59) per diluted share, for the fourth quarter of 2021, compared to net income of $117.6 million, or $1.76 per diluted share, for the fourth quarter of 2020. In the fourth quarter of 2021, net loss included a $17.5 million after-tax gain, or $0.27 per diluted share, attributable to the change in fair value of equity and convertible securities.
Adjusted Consolidated Net Operating Loss1 was $130.8 million, or $(2.05) per diluted share, for the fourth quarter of 2021, compared to Adjusted Consolidated Net Operating Income1 of $105.8 million, or $1.59 per diluted share, for the fourth quarter of 2020.
Key themes of the quarter include:
•Specialty P&C earned premiums increased 17.0% due to a 17.9% increase in policies-in-force and the initial impact of rate changes; AAC contributed 10.3% and 12.6% for earned premiums and policies-in-force, respectively
•Specialty P&C underlying combined ratio1 was 119.4%, due primarily to higher claim severity trends
•Rate and non-rate actions continued at an accelerated pace, but earned benefit was minimal in the quarter
•Investment portfolio continues to provide stable net investment income supporting long-term business objectives
•Declared dividend of $0.31 per share


“This was another challenging quarter, and it goes without saying we’re disappointed in our profitability,” said President, CEO and Chairman Joseph P. Lacher, Jr. “The pandemic-driven environmental challenges the industry has experienced in the last couple of quarters intensified further in the fourth quarter, impacting results in each of our businesses. That said, we closed the year making significant progress on corrective measures that will become visible in the coming quarters. Overall, I couldn’t be prouder of our team and how our organization has responded to the circumstances and challenges in the last couple of years. We remain focused on managing through these circumstances, and our team will continue to deliver on our promises and provide attractive, long-term intrinsic value for our shareholders.”
1 Non-GAAP financial measure. All Non-GAAP financial measures are denoted with footnote 1 throughout this release. See “Use of Non-GAAP Financial Measures” for additional information.

 Three Months EndedYear Ended
(Dollars in Millions, Except Per Share Amounts) (Unaudited)Dec 31,
2021		Dec 31,
2020		Dec 31,
2021		Dec 31,
2020
Net Income (Loss)$(105.8)$97.5 $(120.5)$409.9 
Adjusted Consolidated Net Operating Income (Loss) 1
$(130.8)$105.8 $(218.8)$438.8 
Impact of Catastrophe Losses and Related Loss Adjustment Expense (LAE) on Net Income
$(10.2)$(4.4)$(85.2)$(84.3)
Diluted Net Income (Loss) Per Share From:
Net Income (Loss)$(1.66)$1.46 $(1.87)$6.14 
Adjusted Consolidated Net Operating Income (Loss) 1
$(2.05)$1.59 $(3.40)$6.57 
Impact of Catastrophe Losses and Related LAE on Net Income (Loss) Per Share$(0.16)$(0.07)$(1.33)$(1.26)
Revenues
Total revenues for the fourth quarter of 2021 increased $101.8 million, or 7 percent, to $1,493.9 million, compared to the fourth quarter of 2020, driven by $149.9 million of higher Specialty P&C earned premiums, partially offset by a $50.9 million decrease attributable to the change in fair value of equity and convertible securities. Specialty P&C earned premiums increased due primarily to the acquisition of AAC and growth in existing portfolio. Net investment income increased $5.7 million to $108.4 million in the fourth quarter of 2021 compared to the fourth quarter of 2020 due primarily to higher levels of investments and rate on Company-Owned Life Insurance. Net realized investment gains were $21.7 million in the fourth quarter of 2021, compared to a net loss of $0.1 million in the fourth quarter of 2020.

2

Segment Results
Unless otherwise noted, (i) the segment results discussed below are presented on an after-tax basis, (ii) prior-year development includes both catastrophe and non-catastrophe losses and LAE, (iii) catastrophe losses and LAE exclude the impact of prior-year development, (iv) loss ratio includes loss and LAE, and (v) all comparisons are made to the prior year quarter unless otherwise stated.
Three Months EndedYear Ended
(Dollars in Millions) (Unaudited)Dec 31,
2021		Dec 31,
2020		Dec 31,
2021		Dec 31,
2020
Segment Net Operating Income (Loss):
Specialty Property & Casualty Insurance$(125.2)$91.1 $(196.1)$337.9 
Preferred Property & Casualty Insurance(7.4)16.9 (12.5)3.5 
Life & Health Insurance5.1 9.4 28.2 60.0 
Total Segment Net Operating Income (Loss)(127.5)117.4 (180.4)401.4 
Corporate and Other Net Operating Income (Loss)(3.3)(11.6)(38.4)37.4 
Adjusted Consolidated Net Operating Income (Loss) 1
(130.8)105.8 (218.8)438.8 
Net Income (Loss) From:
Change in Fair Value of Equity and Convertible Securities17.5 57.8 90.5 57.0 
Net Realized Gains on Sales of Investments17.2 (0.1)51.2 30.1 
Impairment Losses(2.5)0.4 (8.7)(15.4)
Acquisition Related Transaction, Integration and Other Costs(7.2)(15.8)(34.7)(50.0)
Debt Extinguishment, Pension and Other Charges— (50.6)— (50.6)
Net Income (Loss)$(105.8)$97.5 $(120.5)$409.9 
The Specialty Property & Casualty Insurance segment reported net operating loss of $125.2 million for the fourth quarter of 2021, compared to net operating income of $91.1 million in the fourth quarter of 2020. Results decreased due primarily to higher Underlying Combined Ratio1. The segment’s Underlying Combined Ratio1 was 119.4 percent, compared to 91.3 percent in the fourth quarter of 2020.
The Preferred Property & Casualty Insurance segment reported net operating loss of $7.4 million for the fourth quarter of 2021, compared to net operating income of $16.9 million in the fourth quarter of 2020. Results deteriorated due primarily to a higher Underlying Combined Ratio1, higher catastrophe losses and LAE, partially offset by lower adverse prior year development. The segment’s Underlying Combined Ratio1 was 106.9 percent, compared to 93.6 percent in the fourth quarter of 2020.
The Life & Health Insurance segment reported net operating income of $5.1 million for the fourth quarter of 2021, compared to $9.4 million in the fourth quarter of 2020.

Capital
Total Shareholders’ Equity at the end of the quarter was $4,007.7 million, a decrease of $555.7 million, or 12 percent, since year-end 2020 primarily driven by a decrease in the valuation of our fixed income bond portfolio, a net operating loss, repurchases of common stock, and cash dividends. Kemper and its direct non-insurance subsidiaries ended the quarter with cash and investments of $233.9 million, and the $400.0 million revolving credit agreement was undrawn.
On November 3, 2021, Kemper announced that its Board of Directors declared a quarterly dividend of $0.31 per share, or $19.9 million. The dividend was paid on December 1, 2021 to its shareholders of record as of November 15, 2021.
3

Kemper ended the quarter with a book value per share of $62.93, a decrease of 10 percent from $69.74 at the end of 2020. Book Value Per Share Excluding Net Unrealized Gains on Fixed Maturities1 was $55.04, compared to $58.67 at the end of 2020.
4

Unaudited condensed consolidated statements of income for the three and twelve months ended December 31, 2021 and 2020 are presented below.
Three Months EndedYear Ended
(Dollars in Millions, Except Per Share Amounts)
Dec 31,
2021		Dec 31,
2020		Dec 31,
2021		Dec 31,
2020
Revenues:
Earned Premiums
$1,359.1 $1,214.0 $5,253.7 $4,672.2 
Net Investment Income
108.4 102.7 427.3 348.2 
Change in Value of Alternative Energy Partnership Investments2
(14.3)— (61.2)— 
Other Income
— 1.9 4.8 94.6 
Income (Loss) from Change in Fair Value of Equity and Convertible Securities
22.2 73.1 114.6 72.1 
Net Realized Gains on Sales of Investments
21.7 (0.1)64.8 38.1 
Impairment Losses(3.2)0.5 (11.0)(19.5)
Total Revenues1,493.9 1,392.1 5,793.0 5,205.7 
Expenses:
Policyholders’ Benefits and Incurred Losses and Loss Adjustment Expenses
1,276.0 863.4 4,600.8 3,323.6 
Insurance Expenses
309.1 279.3 1,218.1 1,100.5 
Interest and Other Expenses
56.2 128.8 219.4 271.5 
Total Expenses1,641.3 1,271.5 6,038.3 4,695.6 
Income (Loss) before Income Taxes (147.4)120.6 (245.3)510.1 
Income Tax Benefit (Expense)41.6 (23.1)124.8 (100.2)
Net Income (Loss)$(105.8)$97.5 $(120.5)$409.9 
Net Income (Loss) Per Unrestricted Share:
Basic
$(1.66)$1.49 $(1.87)$6.24 
Diluted
$(1.66)$1.46 $(1.87)$6.14 
Weighted-average Outstanding (Shares in Thousands):
Unrestricted Shares - Basic63,654.6 65,413.7 64,264.4 65,636.1 
Unrestricted Shares and Equivalent Shares - Diluted63,654.6 66,528.7 64,264.4 66,729.8 
Dividends Paid to Shareholders Per Share$0.31 $0.30 $1.24 $1.20 

2The Alternative Energy Partnership Investments results are included as a pre-tax loss in the Change in Value of Alternative Energy Partnership Investments of $14.3 million and $61.2 million and benefit in income tax expense of $11.2 million and $79.0 million for a net loss of $3.1 million and net income of $17.8 million for the three and twelve months ended December 31, 2021, respectively.

5

Unaudited business segment revenues for the three and twelve months ended December 31, 2021 and 2020 are presented below.
Three Months EndedYear Ended
(Dollars in Millions)Dec 31,
2021		Dec 31,
2020		Dec 31,
2021		Dec 31,
2020
REVENUES:
Specialty Property & Casualty Insurance:
Earned Premiums:
Specialty Automobile$918.1 $796.1 $3,533.7 $3,031.3 
Commercial Automobile114.2 86.3 414.8 304.0 
Total Earned Premiums1,032.3 882.4 3,948.5 3,335.3 
Net Investment Income37.8 37.9 152.5 114.1 
Change in Value of Alternative Energy Partnership Investments(6.7)— (29.0)— 
Other Income1.0 0.4 4.1 1.8 
Total Specialty Property & Casualty Insurance Revenues1,064.4 920.7 4,076.1 3,451.2 
Preferred Property & Casualty Insurance:
Earned Premiums:
Preferred Automobile101.4 107.1 410.5 431.7 
Homeowners52.7 53.3 207.3 220.7 
Other Personal8.5 8.8 33.9 35.8 
Total Earned Premiums162.6 169.2 651.7 688.2 
Net Investment Income17.1 13.4 68.6 37.7 
Change in Value of Alternative Energy Partnership Investments(3.8)— (16.3)— 
Other Income— — — 0.1 
Total Preferred Property & Casualty Insurance Revenues175.9 182.6 704.0 726.0 
Life & Health Insurance:
Earned Premiums:
Life101.5 96.5 401.7 385.7 
Accident & Health47.6 50.2 189.9 199.3 
Property15.1 15.7 61.9 63.7 
Total Earned Premiums164.2 162.4 653.5 648.7 
Net Investment Income50.8 52.8 202.7 198.8 
Change in Value of Alternative Energy Partnership Investments(3.7)— (15.8)— 
Other Income(1.6)— (1.3)0.6 
Total Life & Health Insurance Revenues209.7 215.2 839.1 848.1 
Total Segment Revenues1,450.0 1,318.5 5,619.2 5,025.3 
Income (Loss) from Change in Fair Value of Equity and Convertible Securities22.2 73.1 114.6 72.1 
Net Realized Gains on Sales of Investments21.7 (0.1)64.8 38.1 
Impairment Losses(3.2)0.5 (11.0)(19.5)
Other3.2 0.1 5.4 89.7 
Total Revenues$1,493.9 $1,392.1 $5,793.0 $5,205.7 
6

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


Dec 31,
2021		Dec 31,
2020
Assets:
Investments:
Fixed Maturities at Fair Value
$7,986.9 $7,605.9 
Equity Securities at Fair Value
830.6 858.5 
Equity Securities at Modified Cost
32.3 40.1 
Equity Method Limited Liability Investments at Cost Plus Cumulative Undistributed Earnings
241.9 204.0 
Alternative Energy Partnership Investments39.6 21.3 
Convertible Securities at Fair Value
46.4 39.9 
Short-term Investments at Cost which Approximates Fair Value
284.1 875.4 
Other Investments
925.6 779.0 
Total Investments
10,387.4 10,424.1 
Cash
148.2 206.1 
Receivables from Policyholders
1,418.7 1,194.5 
Other Receivables
207.3 222.4 
Deferred Policy Acquisition Costs
677.6 589.3 
Goodwill
1,312.0 1,114.0 
Current Income Tax Assets
173.1 15.6 
Other Assets
592.2 575.9 
Total Assets
$14,916.5 $14,341.9 
Liabilities and Shareholders’ Equity:
Insurance Reserves:
Life & Health
$3,540.9 $3,527.5 
Property & Casualty
2,772.7 1,982.5 
Total Insurance Reserves
6,313.6 5,510.0 
Unearned Premiums
1,898.7 1,615.1 
Policyholder Contract Liabilities
504.0 467.0 
Deferred Income Tax Liabilities
227.0 285.7 
Accrued Expenses and Other Liabilities
843.6 727.9 
Debt at Amortized Cost
1,121.9 1,172.8 
Total Liabilities
10,908.8 9,778.5 
Shareholders’ Equity:
Common Stock
6.4 6.5 
Paid-in Capital
1,790.7 1,805.2 
Retained Earnings
1,762.5 2,071.2 
Accumulated Other Comprehensive Income
448.1 680.5 
Total Shareholders’ Equity
4,007.7 4,563.4 
Total Liabilities and Shareholders’ Equity
$14,916.5 $14,341.9 

7

Unaudited selected financial information for the Specialty Property & Casualty Insurance segment follows.
Three Months EndedYear Ended
(Dollars in Millions)Dec 31,
2021		Dec 31,
2020		Dec 31,
2021		Dec 31,
2020
Results of Operations
Net Premiums Written$979.0 $829.2 $4,057.3 $3,435.5 
Earned Premiums$1,032.3 $882.4 $3,948.5 $3,335.3 
Net Investment Income37.8 37.9 152.5 114.1 
Change in Value of Alternative Energy Partnership Investments(6.7)— (29.0)— 
Other Income1.0 0.4 4.1 1.8 
Total Revenues1,064.4 920.7 4,076.1 3,451.2 
Incurred Losses and LAE related to:
Current Year:
Non-catastrophe Losses and LAE1,028.5 626.2 3,480.3 2,350.8 
Catastrophe Losses and LAE2.5 5.5 15.7 12.3 
Prior Years:
Non-catastrophe Losses and LAE(7.6)(1.7)97.4 15.1 
Catastrophe Losses and LAE— 0.1 0.3 0.2 
Total Incurred Losses and LAE1,023.4 630.1 3,593.7 2,378.4 
Insurance Expenses204.4 179.1 774.5 651.9 
Operating Income (Loss)(163.4)111.5 (292.1)420.9 
Income Tax Benefit (Expense)38.2 (20.4)96.0 (83.0)
Segment Net Operating Income (Loss)$(125.2)$91.1 $(196.1)$337.9 
Ratios Based On Earned Premiums
Current Year Non-catastrophe Losses and LAE Ratio99.6 %71.0 %88.1 %70.4 %
Current Year Catastrophe Losses and LAE Ratio0.2 0.6 0.4 0.4 
Prior Years Non-catastrophe Losses and LAE Ratio(0.7)(0.2)2.5 0.5 
Prior Years Catastrophe Losses and LAE Ratio— — — — 
Total Incurred Loss and LAE Ratio99.1 71.4 91.0 71.3 
Insurance Expense Ratio19.8 20.3 19.6 19.5 
Combined Ratio118.9 %91.7 %110.6 %90.8 %
Underlying Combined Ratio1
Current Year Non-catastrophe Losses and LAE Ratio99.6 %71.0 %88.1 %70.4 %
Insurance Expense Ratio19.8 20.3 19.6 19.5 
Underlying Combined Ratio1
119.4 %91.3 %107.7 %89.9 %
Non-GAAP Measure Reconciliation
Combined Ratio118.9 %91.7 %110.6 %90.8 %
Less:
Current Year Catastrophe Losses and LAE Ratio0.2 0.6 0.4 0.4 
Prior Years Non-catastrophe Losses and LAE Ratio(0.7)(0.2)2.5 0.5 
Prior Years Catastrophe Losses and LAE Ratio— — — — 
Underlying Combined Ratio1
119.4 %91.3 %107.7 %89.9 %
8

Unaudited selected financial information for the Preferred Property & Casualty Insurance segment follows.
Three Months EndedYear Ended
(Dollars in Millions)Dec 31,
2021		Dec 31,
2020		Dec 31,
2021		Dec 31,
2020
Results of Operations
Net Premiums Written$153.2 $155.2 $642.0 $653.0 
Earned Premiums$162.6 $169.2 $651.7 $688.2 
Net Investment Income17.1 13.4 68.6 37.7 
Change in Value of Alternative Energy Partnership Investments(3.8)— (16.3)— 
Other Income— — — 0.1 
Total Revenues175.9 182.6 704.0 726.0 
Incurred Losses and LAE related to:
Current Year:
Non-catastrophe Losses and LAE122.4 107.1 450.4 400.9 
Catastrophe Losses and LAE7.5 (5.3)79.1 82.0 
Prior Years:
Non-catastrophe Losses and LAE8.4 9.5 13.5 20.7 
Catastrophe Losses and LAE(2.0)0.1 (5.6)(0.5)
Total Incurred Losses and LAE136.3 111.4 537.4 503.1 
Insurance Expenses51.6 51.4 206.4 221.1 
Operating Income (Loss)(12.0)19.8 (39.8)1.8 
Income Tax Benefit (Expense)4.6 (2.9)27.3 1.7 
Segment Net Operating Income (Loss)$(7.4)$16.9 $(12.5)$3.5 
Ratios Based On Earned Premiums
Current Year Non-catastrophe Losses and LAE Ratio75.2 %63.2 %69.2 %58.3 %
Current Year Catastrophe Losses and LAE Ratio4.6 (3.1)12.1 11.9 
Prior Years Non-catastrophe Losses and LAE Ratio5.2 5.6 2.1 3.0 
Prior Years Catastrophe Losses and LAE Ratio(1.2)0.1 (0.9)(0.1)
Total Incurred Loss and LAE Ratio83.8 65.8 82.5 73.1 
Insurance Expense Ratio31.7 30.4 31.7 32.1 
Combined Ratio115.5 %96.2 %114.2 %105.2 %
Underlying Combined Ratio1
Current Year Non-catastrophe Losses and LAE Ratio75.2 %63.2 %69.2 %58.3 %
Insurance Expense Ratio31.7 30.4 31.7 32.1 
Underlying Combined Ratio1
106.9 %93.6 %100.9 %90.4 %
Non-GAAP Measure Reconciliation
Combined Ratio115.5 %96.2 %114.2 %105.2 %
Less:
Current Year Catastrophe Losses and LAE Ratio4.6 (3.1)12.1 11.9 
Prior Years Non-catastrophe Losses and LAE Ratio5.2 5.6 2.1 3.0 
Prior Years Catastrophe Losses and LAE Ratio(1.2)0.1 (0.9)(0.1)
Underlying Combined Ratio1
106.9 %93.6 %100.9 %90.4 %
9

Unaudited selected financial information for the Life & Health Insurance segment follows.
Three Months EndedYear Ended
(Dollars in Millions)Dec 31,
2021		Dec 31,
2020		Dec 31,
2021		Dec 31,
2020
Results of Operations
Earned Premiums$164.2 $162.4 $653.5 $648.7 
Net Investment Income50.8 52.8 202.7 198.8 
Change in Value of Alternative Energy Partnership Investments(3.7)— (15.8)— 
Other Income (Loss)(1.6)— (1.3)0.6 
Total Revenues209.7 215.2 839.1 848.1 
Policyholders’ Benefits and Incurred Losses and LAE116.2 121.8 469.7 442.0 
Insurance Expenses89.5 83.8 358.9 334.9 
Operating Income (Loss)4.0 9.6 10.5 71.2 
Income Tax Benefit (Expense)1.1 (0.2)17.7 (11.2)
Segment Net Operating Income (Loss)$5.1 $9.4 $28.2 $60.0 
Use of Non-GAAP Financial Measures
Adjusted Consolidated Net Operating Income (Loss)1 is an after-tax, non-GAAP financial measure and is computed by excluding from Net Income (Loss) the after-tax impact of:
(i) Income (Loss) from Change in Fair Value of Equity and Convertible Securities;
(ii) Net Realized Gains or Losses on Sales of Investments;
(iii) Impairment Losses;
(iv) Acquisition Related Transaction, Integration and Other Costs;
(v) Debt Extinguishment, Pension and Other Charges; and
(vi) Significant non-recurring or infrequent items that may not be indicative of ongoing operations

Significant non-recurring items are excluded when (a) the nature of the charge or gain is such that it is reasonably unlikely to recur within two years, and (b) there has been no similar charge or gain within the prior two years. The most directly comparable GAAP financial measure is Net Income (Loss). There were no applicable significant non-recurring items that Kemper excluded from the calculation of Adjusted Consolidated Net Operating Income (Loss)1 for the three and twelve months ended December 31, 2021 or 2020.

Kemper believes that Adjusted Consolidated Net Operating Income (Loss)1 provides investors with a valuable measure of its ongoing performance because it reveals underlying operational performance trends that otherwise might be less apparent if the items were not excluded. Income (Loss) from Change in Fair Value of Equity and Convertible Securities, Net Realized Gains or Losses on Sales of Investments and Impairment Losses related to investments included in Kemper’s results may vary significantly between periods and are generally driven by business decisions and external economic developments such as capital market conditions that impact the values of the Kemper’s investments, the timing of which is unrelated to the insurance underwriting process. Acquisition Related Transaction and Integration Costs may vary significantly between periods and are generally driven by the timing of acquisitions and business decisions which are unrelated to the insurance underwriting process. Debt Extinguishment, Pension and Other Charges relate to (i) loss from early extinguishment of debt, which is driven by Kemper’s financing and refinancing decisions and capital needs, as well as external economic developments such as debt market conditions, the timing of which is unrelated to the insurance underwriting process; (ii) settlement of pension plan obligations which are business decisions made by Kemper, the timing of which is unrelated to the underwriting process; and (iii) other charges that are non-standard, not part of the ordinary course of business, and unrelated to the insurance underwriting process. Significant non-recurring items are excluded because, by their nature, they are not indicative of the Kemper’s business or economic trends. The preceding non-GAAP financial measures should not be considered a substitute for the comparable GAAP financial measures, as they do not fully recognize the overall profitability of the Kemper’s businesses.
10

A reconciliation of Net Income (Loss) to Adjusted Consolidated Net Operating Income (Loss) 1 for the three and twelve months ended December 31, 2021 and 2020 is presented below.
Three Months EndedYear Ended
(Dollars in Millions) (Unaudited)Dec 31,
2021		Dec 31,
2020		Dec 31,
2021		Dec 31,
2020
Net Income (Loss)$(105.8)$97.5 $(120.5)$409.9 
Less Net Income (Loss) From:
Change in Fair Value of Equity and Convertible Securities17.5 57.8 90.5 57.0 
Net Realized Gains on Sales of Investments17.2 (0.1)51.2 30.1 
Impairment Losses(2.5)0.4 (8.7)(15.4)
Acquisition Related Transaction, Integration and Other Costs(7.2)(15.8)(34.7)(50.0)
Debt Extinguishment, Pension and Other Charges— (50.6)— (50.6)
Adjusted Consolidated Net Operating Income (Loss) 1
$(130.8)$105.8 $(218.8)$438.8 
Diluted Adjusted Consolidated Net Operating Income (Loss) Per Unrestricted Share1 is a non-GAAP financial measure computed by dividing Adjusted Consolidated Net Operating Income (Loss)1 attributed to unrestricted shares by the weighted-average unrestricted shares and equivalent shares outstanding. The most directly comparable GAAP financial measure is Diluted Net Income (Loss) Per Unrestricted Share.
A reconciliation of Diluted Net Income (Loss) Per Unrestricted Share to Diluted Adjusted Consolidated Net Operating Income (Loss) Per Unrestricted Share1 for the three and twelve months ended December 31, 2021 and 2020 is presented below.
 Three Months EndedYear Ended
(Unaudited)Dec 31,
2021		Dec 31,
2020		Dec 31,
2021		Dec 31,
2020
Diluted Net Income (Loss) Per Unrestricted Share$(1.66)$1.46 $(1.87)$6.14 
Less Net Income (Loss) Per Unrestricted Share From:
Change in Fair Value of Equity and Convertible Securities0.27 0.86 1.41 0.86 
Net Realized Gains on Sales of Investments0.27 — 0.80 0.45 
Impairment Losses(0.04)0.01 (0.14)(0.23)
Acquisition Related Transaction, Integration and Other Costs(0.11)(0.24)(0.54)(0.75)
Debt Extinguishment, Pension and Other Charges— (0.76)— (0.76)
Diluted Adjusted Consolidated Net Operating Income (Loss) Per Unrestricted Share1
$(2.05)$1.59 $(3.40)$6.57 
Book Value Per Share Excluding Net Unrealized Gains on Fixed Maturities1 is a calculation that uses a non-GAAP financial measure. It is calculated by dividing shareholders’ equity after excluding the after-tax impact of net unrealized gains on fixed income securities by total Common Shares Issued and Outstanding. Book Value Per Share is the most directly comparable GAAP financial measure. Kemper uses the trends in book value per share, excluding the after-tax impact of net unrealized gains on fixed income securities, in conjunction with book value per share to identify and analyze the change in net worth attributable to management efforts between periods. Kemper believes the non-GAAP financial measure is useful to investors because it eliminates the effect of items that can fluctuate significantly from period to period and are generally driven by economic developments, primarily capital market conditions, the magnitude and timing of which are not influenced by management. Kemper believes it enhances understanding and comparability of performance by highlighting underlying business activity and profitability drivers.

11

A reconciliation of the numerator used in the computation of Book Value Per Share Excluding Net Unrealized Gains on Fixed Maturities1 and Book Value Per Share at December 31, 2021 and December 31, 2020 is presented below.
(Dollars in Millions) (Unaudited)Dec 31,
2021		Dec 31,
2020
Shareholders’ Equity$4,007.7 $4,563.4 
Net Unrealized Gains on Fixed Maturities502.6 724.0 
Shareholders’ Equity Excluding Net Unrealized Gains on Fixed Maturities1
$3,505.1 $3,839.4 
Underlying Combined Ratio1 is a non-GAAP financial measure. It is computed by adding the Current Year Non-catastrophe Losses and LAE Ratio with the Insurance Expense Ratio. The most directly comparable GAAP financial measure is the Combined Ratio, which is computed by adding Total Incurred Losses and LAE Ratio, including the impact of catastrophe losses and loss and LAE reserve development from prior years, with the Insurance Expense Ratio.
Kemper believes Underlying Losses and LAE and the Underlying Combined Ratio are useful to investors and uses these financial measures to reveal the trends in Kemper’s Property & Casualty Insurance segment that may be obscured by catastrophe losses and prior-year reserve development. These catastrophe losses may cause the Kemper’s loss trends to vary significantly between periods as a result of their incidence of occurrence and magnitude and can have a significant impact on incurred losses and LAE and the Combined Ratio. Prior-year reserve developments are caused by unexpected loss development on historical reserves. Because reserve development relates to the re-estimation of losses from earlier periods, it has no bearing on the performance of the Kemper’s insurance products in the current period. Kemper believes it is useful for investors to evaluate these components separately and in the aggregate when reviewing the Kemper’s underwriting performance.

12

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

A reconciliation of the As Adjusted for Acquisitions1 non-GAAP financial measures used in this press release to the comparable GAAP financial measure for the three months ended December 31, 2021 is presented below.
(Dollars in Millions, Except Per Share Amounts) (Unaudited)
Kemper Consolidated GAAP Financial MeasureLess Impact of Purchase Accounting Adjustments
As Adjusted for Acquisitions1
Net Income (Loss)$(105.8)$(4.5)$(101.3)
Net Income (Loss) Per Share - Diluted$(1.66)$(0.07)$(1.59)
Specialty Property & Casualty Insurance Segment:
Earned Premiums$1,032.3 $— $1,032.3 
Segment Net Operating Income (Loss)$(125.2)$(4.8)$(120.4)
Specialty Personal Automobile Insurance:
Earned Premiums$918.1 $— $918.1 
Segment Net Operating Income (Loss)$(129.7)$(4.5)$(125.2)
A reconciliation of the As Adjusted for Acquisitions1 non-GAAP financial measures used in this press release to the comparable GAAP financial measure for the three months ended December 31, 2020 is presented below.
(Dollars in Millions, Except Per Share Amounts) (Unaudited)
Kemper Consolidated GAAP Financial MeasureAAC Historical GAAP Financial MeasureLess Impact of Purchase Accounting Adjustments
As Adjusted for Acquisitions1
Net Income (Loss)$97.5 $16.9 $(3.2)$117.6 
Net Income (Loss) Per Share - Diluted$1.46 $0.25 $(0.05)$1.76 
Specialty Property & Casualty Insurance Segment:
Earned Premiums$882.4 $91.2 $— $973.6 
Segment Net Operating Income (Loss)$91.1 $9.5 $(3.6)$104.2 
Specialty Personal Automobile Insurance:
Earned Premiums$796.1 $91.2 $— $887.3 
Segment Net Operating Income (Loss)$77.4 $9.5 $(2.8)$89.7 

13

Conference Call
Kemper will host its conference call to discuss fourth quarter 2021 results on Monday, January 31st, at 5:00 p.m. Eastern (4:00 p.m. Central). The conference call will be accessible via the internet and by telephone at 844.200.6205, access code 863164. 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 fourth quarter of 2021, which is available at the investor section of kemper.com.
About Kemper
The Kemper family of companies is one of the nation’s leading specialized insurers. With approximately $15 billion in assets, Kemper is improving the world of insurance by providing affordable and easy-to-use personalized solutions to individuals, families and businesses through its Auto, Personal Insurance, Life and Health brands. Kemper serves over 6.5 million policies, is represented by approximately 35,400 agents and brokers, and has approximately 10,300 associates dedicated to meeting the ever-changing needs of its customers.
Learn more about Kemper at kemper.com.

Caution Regarding Forward-Looking Statements

This press release may contain or incorporate by reference information that includes or is based on forward-looking statements within the meaning of the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995. We caution investors that these forward-looking statements are not guarantees of future performance, and actual results may differ materially. Such statements involve known and unknown risks, uncertainties, and other factors, including but not limited to:

•changes in the frequency and severity of insurance claims;
•claim development and the process of estimating claim reserves;
•the impacts of inflation;
•product demand and pricing;
•effects of governmental and regulatory actions;
•litigation outcomes;
•investment risks;
•cybersecurity risks;
•impact of catastrophes; and
•other risks and uncertainties detailed in Kemper’s Annual Report on Form 10-K and subsequent filings with the Securities and Exchange Commission (“SEC”).

The COVID-19 outbreak and subsequent global pandemic (“Pandemic”) is an extraordinary catastrophe that creates unique uncertainties and risks. Kemper cannot provide any assurances as to the impacts of the Pandemic and related economic conditions on Kemper’s operating and financial results.

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.
###

Contacts

Investors: Karen Guerra

312.661.4930 or [email protected]
Media: Barbara Ciesemier
312.661.4521 or [email protected]
14
Exhibit 99.2

kemperlogocolorwebfinala05.jpg

Investor Supplement
Fourth Quarter 2021
The financial statements and financial exhibits included herein are unaudited. These financial statements and exhibits should be read in conjunction with the Company’s periodic reports on Forms 10-K, 10-Q and 8-K filed with the U.S. Securities and Exchange Commission (the “SEC”). The results of operations for interim periods should not be considered indicative of results to be expected for the full year.
Caution Regarding Forward-Looking Statements

This Investor Supplement may contain or incorporate by reference information that includes or is based on forward-looking statements within the meaning of the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995. We caution investors that these forward-looking statements are not guarantees of future performance, and actual results may differ materially. Such statements involve known and unknown risks, uncertainties, and other factors, including but not limited to:

•changes in the frequency and severity of insurance claims;
•claim development and the process of estimating claim reserves;
•the impacts of inflation;
•product demand and pricing;
•effects of governmental and regulatory actions;
•litigation outcomes;
•investment risks;
•cybersecurity risks;
•impact of catastrophes; and
•other risks and uncertainties detailed in Kemper’s Annual Report on Form 10-K and subsequent filings with the Securities and Exchange Commission (“SEC”).

The COVID-19 outbreak and subsequent global pandemic (“Pandemic”) is an extraordinary catastrophe that creates unique uncertainties and risks. Kemper cannot provide any assurances as to the impacts of the Pandemic and related economic conditions on Kemper’s operating and financial results.

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.



Exhibit 99.2
Non-GAAP Financial Measures
This document contains non-GAAP financial measures to analyze the Company’s operating performance for the periods presented. Because the Company’s calculation of these measures may differ from similar measures used by other companies, investors should be careful when comparing the Company’s non-GAAP financial measures to those of other companies. For detailed disclosures on non-GAAP financial measures please refer to the “Definitions of Non-GAAP Financial Measures” on Pages 34-35.



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






Kemper Corporation
Consolidated Financial Highlights
(Dollars in Millions, Except Per Share Amounts)
(Unaudited)
 Three Months EndedYear Ended
Dec 31,
2021		Sep 30, 2021Jun 30, 2021Mar 31, 2021Dec 31, 2020Sep 30, 2020Jun 30, 2020Mar 31, 2020Dec 31,
2021		Dec 31,
2020
For Period Ended
Earned Premiums
$1,359.1 $1,356.1 $1,337.7 $1,200.8 $1,214.0 $1,206.5 $1,085.3 $1,166.4 $5,253.7 $4,672.2 
Net Investment Income
108.4 101.9 113.9 103.1 102.7 92.1 67.8 85.6 427.3 348.2 
Change in Value of Alternative Energy Partnership Investments(14.3)(23.8)(7.7)(15.4)— — — — (61.2)— 
Other Income
— 1.5 1.8 1.5 1.9 0.9 1.5 90.3 4.8 94.6 
Income (Loss) from Change in Fair Value of Equity and Convertible Securities
22.2 (0.6)40.8 52.2 73.1 45.2 71.6 (117.8)114.6 72.1 
Net Investment Gains (Loss)
18.5 9.5 16.0 9.8 0.4 9.0 4.7 4.5 53.8 18.6 
Total Revenues
$1,493.9 $1,444.6 $1,502.5 $1,352.0 $1,392.1 $1,353.7 $1,230.9 $1,229.0 $5,793.0 $5,205.7 
Net Income (Loss)$(105.8)$(75.3)$(62.6)$123.2 $97.5 $122.3 $126.1 $64.0 $(120.5)$409.9 
Adjusted Consolidated Net Operating Income (Loss) 1
$(130.8)$(75.8)$(99.4)$87.2 $105.8 $90.9 $79.2 $162.9 $(218.8)$438.8 
Per Unrestricted Common Share Amounts:
Basic:
Net Income (Loss)$(1.66)$(1.18)$(0.97)$1.88 $1.49 $1.87 $1.93 $0.96 $(1.87)$6.24 
Adjusted Consolidated Net Operating Income (Loss) 1
$(2.05)$(1.19)$(1.54)$1.33 $1.62 $1.39 $1.21 $2.45 $(3.40)$6.68 
Diluted:
Net Income (Loss)$(1.66)$(1.18)$(0.97)$1.85 $1.46 $1.83 $1.91 $0.95 $(1.87)$6.14 
Adjusted Consolidated Net Operating Income (Loss) 1
$(2.05)$(1.19)$(1.54)$1.31 $1.59 $1.36 $1.20 $2.43 $(3.40)$6.57 
Dividends Paid to Shareholders Per Share
$0.31 $0.31 $0.31 $0.31 $0.30 $0.30 $0.30 $0.30 $1.24 $1.20 
At Period End
Total Assets
$14,916.5 $14,977.2 $14,950.7 $14,203.7 $14,341.9 $14,090.4 $13,489.4 $12,932.3 
Insurance Reserves
$6,313.6 $6,120.3 $5,982.4 $5,541.1 $5,510.0 $5,461.5 $5,375.0 $5,442.4 
Debt
$1,121.9 $1,122.1 $1,122.3 $1,122.6 $1,172.8 $1,173.0 $777.7 $778.1 
Shareholders’ Equity
$4,007.7 $4,151.2 $4,306.2 $4,339.1 $4,563.4 $4,347.5 $4,187.9 $3,760.8 
Shareholders’ Equity Excluding Goodwill1,2
$2,695.7 $2,839.2 $2,994.3 $3,225.1 $3,449.4 $3,233.5 $3,073.9 $2,646.8 
Common Shares Issued and Outstanding (In Millions)
63.685 63.652 63.636 65.016 65.436 65.406 65.282 65.365 
Book Value Per Share2
$62.93 $65.22 $67.67 $66.74 $69.74 $66.47 $64.15 $57.54 
Book Value Per Share Excluding Goodwill1,2
$42.33 $44.61 $47.05 $49.60 $52.71 $49.44 $47.09 $40.49 
Book Value Per Share Excluding Net Unrealized Gains on Fixed Maturities1,2
$55.04 $56.94 $58.39 $60.00 $58.67 $56.63 $55.13 $53.53 
Book Value Per Share Excluding Net Unrealized Gains on Fixed Maturities and Goodwill1,2
$34.44 $36.33 $37.77 $42.87 $41.65 $39.60 $38.07 $36.49 
Debt to Total Capitalization2
21.9 %21.3 %20.7 %20.6 %20.4 %21.2 %15.7 %17.1 %
Rolling 12 Months Return on 5-point Average Shareholders Equity2,3
(2.8)%1.9 %6.4 %11.1 %9.8 %10.8 %11.4 %11.8 %
1 Non-GAAP Financial Measure. See page 34 for definition.
2 See Capital Metrics on pages 8-9 for detail calculations.
3 Rolling 12 Months Return on 5-point Average Shareholders Equity is calculated by taking the last 12 months of Net Income (Loss) divided by the 5-point average Shareholders’ Equity. The 5-point Average Shareholders’ Equity is calculated by using a 5-point quarter average of Shareholders’ Equity for the 12 month period.
3

Kemper Corporation
Consolidated Statements of Income
(Dollars in Millions, Except Per Share Amounts)
(Unaudited)
 Three Months EndedYear Ended
 Dec 31,
2021		Sep 30, 2021Jun 30, 2021Mar 31, 2021Dec 31, 2020Sep 30, 2020Jun 30, 2020Mar 31, 2020Dec 31,
2021		Dec 31,
2020
Revenues:
Earned Premiums$1,359.1 $1,356.1 $1,337.7 $1,200.8 $1,214.0 $1,206.5 $1,085.3 $1,166.4 $5,253.7 $4,672.2 
Net Investment Income108.4 101.9 113.9 103.1 102.7 92.1 67.8 85.6 427.3 348.2 
Change in Value of Alternative Energy Partnership Investments(14.3)(23.8)(7.7)(15.4)— — — — (61.2)— 
Other Income— 1.5 1.8 1.5 1.9 0.9 1.5 90.3 4.8 94.6 
Income (Loss) from Change in Fair Value of Equity and Convertible Securities22.2 (0.6)40.8 52.2 73.1 45.2 71.6 (117.8)114.6 72.1 
Net Realized Gains (Losses) on Sales of Investments21.7 10.1 19.2 13.8 (0.1)10.0 11.7 16.5 64.8 38.1 
Impairment Losses(3.2)(0.6)(3.2)(4.0)0.5 (1.0)(7.0)(12.0)(11.0)(19.5)
Total Revenues1,493.9 1,444.6 1,502.5 1,352.0 1,392.1 1,353.7 1,230.9 1,229.0 5,793.0 5,205.7 
Expenses:
Policyholders’ Benefits and Incurred Losses and Loss Adjustment Expenses1,276.0 1,211.2 1,224.1 889.5 863.4 877.5 747.5 835.2 4,600.8 3,323.6 
Insurance Expenses309.1 311.3 314.0 283.7 279.3 276.9 272.7 271.6 1,218.1 1,100.5 
Interest and Other Expenses56.2 51.9 54.1 57.2 128.8 47.2 51.0 44.5 219.4 271.5 
Total Expenses1,641.3 1,574.4 1,592.2 1,230.4 1,271.5 1,201.6 1,071.2 1,151.3 6,038.3 4,695.6 
Income (Loss) before Income Taxes(147.4)(129.8)(89.7)121.6 120.6 152.1 159.7 77.7 (245.3)510.1 
Income Tax Benefit (Expense)41.6 54.5 27.1 1.6 (23.1)(29.8)(33.6)(13.7)124.8 (100.2)
Net Income (Loss)$(105.8)$(75.3)$(62.6)$123.2 $97.5 $122.3 $126.1 $64.0 $(120.5)$409.9 
Income (Loss) Per Unrestricted Share:
Basic$(1.66)$(1.18)$(0.97)$1.88 $1.49 $1.87 $1.93 $0.96 $(1.87)$6.24 
Diluted$(1.66)$(1.18)$(0.97)$1.85 $1.46 $1.83 $1.91 $0.95 $(1.87)$6.14 
Net Income (Loss) Per Unrestricted Share:
Basic$(1.66)$(1.18)$(0.97)$1.88 $1.49 $1.87 $1.93 $0.96 $(1.87)$6.24 
Diluted$(1.66)$(1.18)$(0.97)$1.85 $1.46 $1.83 $1.91 $0.95 $(1.87)$6.14 
Dividends Paid to Shareholders Per Share$0.31 $0.31 $0.31 $0.31 $0.30 $0.30 $0.30 $0.30 $1.24 $1.20 
Weighted Average Unrestricted Common Shares Outstanding (in Millions)63.655 63.628 64.377 65.425 65.414 65.363 65.258 66.516 64.264 65.636 
 
4

Kemper Corporation
Consolidated Balance Sheets
(Dollars in Millions)
(Unaudited)
Dec 31,
2021		Sep 30, 2021Jun 30, 2021Mar 31, 2021Dec 31, 2020Sep 30, 2020Jun 30, 2020Mar 31, 2020
Assets:
Investments:
Fixed Maturities at Fair Value$7,986.9 $7,885.1 $7,835.0 $7,479.4 $7,605.9 $7,504.8 $7,480.4 $6,998.5 
Equity Securities at Fair Value830.6 969.6 957.7 897.4 858.5 788.2 783.3 709.8 
Equity Securities at Modified Cost32.3 33.0 32.5 36.0 40.1 48.4 48.1 44.8 
Equity Method Limited Liability Investments241.9 255.1 245.5 219.2 204.0 206.2 209.9 226.3 
Alternative Energy Partnerships39.6 54.2 46.6 54.4 21.3 — — — 
Convertible Securities at Fair Value46.4 44.1 43.6 42.6 39.9 36.3 35.0 32.8 
Short-term Investments at Cost which Approximates Fair Value284.1 259.7 370.6 196.9 875.4 628.8 154.2 166.7 
Other Investments925.6 921.5 910.8 896.8 779.0 762.8 757.5 760.2 
Total Investments10,387.4 10,422.3 10,442.3 9,822.7 10,424.1 9,975.5 9,468.4 8,939.1 
Cash148.2 119.8 105.1 547.4 206.1 352.2 389.3 301.3 
Receivables from Policyholders1,418.7 1,481.2 1,479.9 1,260.9 1,194.5 1,249.3 1,165.3 1,219.1 
Other Receivables207.3 207.3 214.9 225.4 222.4 214.0 207.1 207.8 
Deferred Policy Acquisition Costs677.6 676.6 652.7 611.7 589.3 578.2 560.8 551.5 
Goodwill1,312.0 1,312.0 1,311.9 1,114.0 1,114.0 1,114.0 1,114.0 1,114.0 
Current Income Tax Assets173.1 138.7 94.2 65.6 15.6 33.1 3.5 17.8 
Other Assets592.2 619.3 649.7 556.0 575.9 574.1 581.0 581.7 
Total Assets$14,916.5 $14,977.2 $14,950.7 $14,203.7 $14,341.9 $14,090.4 $13,489.4 $12,932.3 
Liabilities and Shareholders’ Equity:
Insurance Reserves:
Life and Health$3,540.9 $3,524.1 $3,551.6 $3,541.6 $3,527.5 $3,511.5 $3,497.7 $3,500.8 
Property and Casualty2,772.7 2,596.2 2,430.8 1,999.5 1,982.5 1,950.0 1,877.3 1,941.6 
Total Insurance Reserves6,313.6 6,120.3 5,982.4 5,541.1 5,510.0 5,461.5 5,375.0 5,442.4 
Unearned Premiums1,898.7 1,965.7 1,968.1 1,713.0 1,615.1 1,681.6 1,642.6 1,621.4 
Policyholder Contract Liabilities504.0 481.8 442.7 466.5 467.0 503.7 520.3 430.5 
Deferred Income Tax Liabilities227.0 242.4 269.6 227.6 285.7 245.5 226.8 116.0 
Accrued Expenses and Other Liabilities843.6 893.7 859.4 793.8 727.9 677.6 759.1 783.1 
Long-term Debt, Current and Non-current, at Amortized Cost1,121.9 1,122.1 1,122.3 1,122.6 1,172.8 1,173.0 777.7 778.1 
Total Liabilities10,908.8 10,826.0 10,644.5 9,864.6 9,778.5 9,742.9 9,301.5 9,171.5 
Shareholders’ Equity:
Common Stock6.4 6.4 6.4 6.5 6.5 6.5 6.5 6.5 
Paid-in Capital1,790.7 1,777.0 1,770.9 1,802.1 1,805.2 1,798.5 1,792.5 1,788.2 
Retained Earnings1,762.5 1,888.4 1,985.9 2,140.0 2,071.2 1,993.5 1,891.6 1,791.2 
Accumulated Other Comprehensive Income448.1 479.4 543.0 390.5 680.5 549.0 497.3 174.9 
Total Shareholders’ Equity4,007.7 4,151.2 4,306.2 4,339.1 4,563.4 4,347.5 4,187.9 3,760.8 
Total Liabilities and Shareholders’ Equity$14,916.5 $14,977.2 $14,950.7 $14,203.7 $14,341.9 $14,090.4 $13,489.4 $12,932.3 
5

Kemper Corporation
Consolidated Statements of Cash Flows
(Dollars in Millions)
 (Unaudited)
 Year Ended
 Dec 31,
2021		Dec 31,
2020
Cash Flows from Operating Activities:
Net Income (Loss)$(120.5)$409.9 
Adjustments to Reconcile Net Income (Loss) to Net Cash Provided by Operating Activities:
Net Realized Investment (Gains) Losses(64.8)(38.1)
Impairment Losses11.0 19.5 
Depreciation and Amortization of Property, Equipment and Software46.3 36.2 
Amortization of Intangibles Assets Acquired53.5 18.8 
Settlement Costs Related to Defined Benefit Pension Plan— 64.1 
Change in Accumulated Undistributed Earnings of Equity Method Limited Liability Investments(33.5)(4.0)
Loss from Alternative Energy Partnership Investments61.2 — 
(Increase) Decrease in Value of Equity and Convertible Securities(114.6)(72.1)
Changes in:
Receivables from Policyholders(75.2)(77.4)
Reinsurance Recoverables20.6 16.8 
Deferred Policy Acquisition Costs(88.3)(52.3)
Insurance Reserves623.1 38.3 
Unearned Premiums105.9 69.6 
Income Taxes(163.1)46.5 
Other Assets and Liabilities89.1 (27.8)
Net Cash Provided by Operating Activities350.7 448.0 
6

Kemper Corporation
Consolidated Statements of Cash Flows
(Dollars in Millions)
 (Unaudited)
 Year Ended
 Dec 31,
2021		Dec 31,
2020
Net Cash Provided by Operating Activities (Carryforward from page 6)$350.7 $448.0 
Cash Flows from Investing Activities:
Proceeds from Sales, Calls, and Maturities of Fixed Maturities1,388.9 972.4 
Proceeds from the Sales of Investments:
Equity Securities316.6 434.4 
Real Estate Investments8.0 5.4 
Mortgage Loans70.8 25.5 
Other Investments47.5 45.2 
Purchases of Investments:
Fixed Maturities(1,825.4)(1,293.3)
Equity Securities(124.3)(319.1)
Real Estate Investments(5.1)(0.5)
Corporate-Owned Life Insurance(100.0)(100.0)
Mortgage Loans(119.9)(52.7)
Other Investments(104.9)(43.5)
Net Sales (Purchases) of Short-term Investments687.2 (390.8)
Acquisition of Business, Net of Cash Acquired(316.6)— 
Acquisition of Software and Long-lived Assets(57.8)(53.4)
Other16.8 13.4 
Net Cash Provided (Used In) by Investing Activities(118.2)(757.0)
Cash Flows from Financing Activities:
Repayment of Long-Term Debt(50.0)— 
Net Proceeds from Issuance of Long-term Debt— 395.6 
Proceeds from Policyholder Contract Obligations386.8 467.0 
Repayment of Policyholder Contract Obligations(394.0)(304.8)
Proceeds from Shares Issued under Employee Stock Purchase Plan5.4 4.4 
Common Stock Repurchases(161.7)(110.4)
Dividends and Dividend Equivalents Paid(80.6)(78.9)
Other3.7 5.4 
Net Cash Provided by (Used In) Financing Activities(290.4)378.3 
Increase (Decrease) in Cash(57.9)69.3 
Cash, Beginning of Year206.1 136.8 
Cash, End of Period$148.2 $206.1 
7


Kemper Corporation
Capital Metrics
(Dollars and Shares in Millions, Except Per Share Amounts)
(Unaudited)
 Dec 31,
2021		Sep 30, 2021Jun 30, 2021Mar 31, 2021Dec 31, 2020Sep 30, 2020Jun 30, 2020Mar 31, 2020
Book Value Per Share   
Numerator
Shareholders’ Equity$4,007.7 $4,151.2 $4,306.2 $4,339.1 $4,563.4 $4,347.5 $4,187.9 $3,760.8 
Less: Goodwill(1,312.0)(1,312.0)(1,311.9)(1,114.0)(1,114.0)(1,114.0)(1,114.0)(1,114.0)
Shareholders’ Equity Excluding Goodwill1
$2,695.7 $2,839.2 $2,994.3 $3,225.1 $3,449.4 $3,233.5 $3,073.9 $2,646.8 
Shareholders’ Equity$4,007.7 $4,151.2 $4,306.2 $4,339.1 $4,563.4 $4,347.5 $4,187.9 $3,760.8 
Less: Net Unrealized Gains on Fixed Maturities(502.6)(526.9)(590.5)(438.0)(724.0)(643.7)(588.6)(261.6)
Shareholders’ Equity Excluding Net Unrealized Gains on Fixed Maturities1
$3,505.1 $3,624.3 $3,715.7 $3,901.1 $3,839.4 $3,703.8 $3,599.3 $3,499.2 
Less: Goodwill(1,312.0)(1,312.0)(1,311.9)(1,114.0)(1,114.0)(1,114.0)(1,114.0)(1,114.0)
Shareholders’ Equity Excluding Net Unrealized Gains on Fixed Maturities and Goodwill1
$2,193.1 $2,312.3 $2,403.8 $2,787.1 $2,725.4 $2,589.8 $2,485.3 $2,385.2 
Denominator
Common Shares Issued and Outstanding63.685 63.652 63.636 65.016 65.436 65.406 65.282 65.365 
Book Value Per Share$62.93 $65.22 $67.67 $66.74 $69.74 $66.47 $64.15 $57.54 
Book Value Per Share Excluding Goodwill1
$42.33 $44.61 $47.05 $49.60 $52.71 $49.44 $47.09 $40.49 
Book Value Per Share Excluding Net Unrealized Gains on Fixed Maturities1
$55.04 $56.94 $58.39 $60.00 $58.67 $56.63 $55.13 $53.53 
Book Value Per Share Excluding Net Unrealized Gains on Fixed Maturities and Goodwill1
$34.44 $36.33 $37.77 $42.87 $41.65 $39.60 $38.07 $36.49 
Return on Shareholders’ Equity
Numerator
Rolling 12 Months Net Income$(120.5)$82.8 $280.4 $469.1 $409.9 $437.1 $443.8 $439.8 
Denominator (5-point Average)
5-point Average Shareholders’ Equity$4,273.5 $4,341.5 $4,348.8 $4,239.7 $4,166.4 $4,032.5 $3,899.8 $3,726.2 
Rolling 12 Months Return on Average Shareholders' Equity (5-point Average)(2.8)%1.9 %6.4 %11.1 %9.8 %10.8 %11.4 %11.8 %
Return on Shareholders’ Equity Excluding Goodwill1
Denominator (5-point Average)
5-point Average Shareholders’ Equity Excluding Goodwill1
$3,040.7 $3,148.3 $3,195.2 $3,125.7 $3,052.4 $2,918.5 $2,785.8 $2,612.7 
Rolling 12 Months Return on Average Shareholders' Equity Excluding Goodwill (5-point Average)1
(4.0)%2.6 %8.8 %15.0 %13.4 %15.0 %15.9 %16.8 %
Return on Shareholders’ Equity Excluding Net Unrealized Gains on Fixed Maturities1
Denominator (5-point Average)
5-point Average Shareholders’ Equity Excluding Net Unrealized Gains on Fixed Maturities1
$3,717.1 $3,756.8 $3,751.8 $3,708.5 $3,636.0 $3,554.7 $3,477.1 $3,372.9 
 Rolling 12 Months Return on Average Shareholders' Equity Excluding Net Unrealized Gains on Fixed Maturities (5-point Average)1
(3.2)%2.2 %7.5 %12.6 %11.3 %12.3 %12.8 %13.0 %
Return on Shareholders’ Equity Excluding Net Unrealized Gains on Fixed Maturities and Goodwill1
Denominator (5-point Average)
5-point Average Shareholders’ Equity Excluding Net Unrealized Gains on Fixed Maturities and Goodwill1
$2,484.3 $2,563.7 $2,598.3 $2,594.5 $2,522.0 $2,440.7 $2,363.1 $2,259.4 
 Rolling 12 Months Return on Average Shareholders' Equity Excluding Net Unrealized Gains on Fixed Maturities and Goodwill (5-point Average)1
(4.9)%3.2 %10.8 %18.1 %16.3 %17.9 %18.8 %19.5 %
1 Non-GAAP financial measure. See definitions beginning on page 34.
8


Kemper Corporation
Capital Metrics
(Dollars and Shares in Millions, Except Per Share Amounts)
(Unaudited)
 Dec 31,
2021		Sep 30, 2021Jun 30, 2021Mar 31, 2021Dec 31, 2020Sep 30, 2020Jun 30, 2020Mar 31, 2020
Debt and Total Capitalization
Debt$1,121.9 $1,122.1 $1,122.3 $1,122.6 $1,172.8 $1,173.0 $777.7 $778.1 
Shareholders’ Equity4,007.7 4,151.2 4,306.2 4,339.1 4,563.4 4,347.5 4,187.9 3,760.8 
Total Capitalization$5,129.6 $5,273.3 $5,428.5 $5,461.7 $5,736.2 $5,520.5 $4,965.6 $4,538.9 
Ratio of Debt to Shareholders’ Equity28.0 %27.0 %26.1 %25.9 %25.7 %27.0 %18.6 %20.7 %
Ratio of Debt to Total Capitalization21.9 %21.3 %20.7 %20.6 %20.4 %21.2 %15.7 %17.1 %
Parent Company Liquidity
Kemper Holding Company Cash and Investments1
$233.9 $330.6 $214.8 $607.1 $733.2 $738.7 $270.5 $199.1 
Borrowings Available Under Credit Agreement400.0 400.0 400.0 400.0 400.0 400.0 400.0 400.0 
Parent Company Liquidity$633.9 $730.6 $614.8 $1,007.1 $1,133.2 $1,138.7 $670.5 $599.1 
Capital Returned to Shareholders
Cash Dividends Paid 2
$19.9 $19.7 $20.4 $21.0 $19.7 $19.7 $19.7 $20.0 
1 Includes Kemper's direct non-insurance subsidiaries
2 Three Months Ended
 
9


Kemper Corporation
Debt Outstanding, FHLB Advances and Ratings
(Dollars in Millions)
(Unaudited)
Dec 31,
2021		Sep 30, 2021Jun 30, 2021Mar 31, 2021Dec 31, 2020Sep 30, 2020Jun 30, 2020Mar 31, 2020
Kemper Corporation:
Term Loan due July 5, 2023— — — — 49.9 49.9 49.9 49.9 
Senior Notes at Amortized Cost:
5.000% Senior Notes due September 19, 2022276.7 277.1 277.6 277.9 278.3 278.7 279.1 279.6 
4.350% Senior Notes due February 15, 2025449.0 448.9 448.8 448.9 448.8 448.8 448.7 448.6 
2.400% Senior Notes due September 30, 2030396.2 396.1 395.9 395.8 395.8 395.6 — — 
Long-term Debt Outstanding$1,121.9 $1,122.1 $1,122.3 $1,122.6 $1,172.8 $1,173.0 $777.7 $778.1 
Federal Home Loan Bank Advances to Insurance Subsidiaries:
Reported as Policyholder Contract Liabilities:
Federal Home Loan Bank of Chicago$401.9 $378.9 $382.8 $407.5 $407.8 $444.1 $454.3 $364.2 
Reported as Debt Outstanding:
Federal Home Loan Bank of Dallas$— $— $— $— $— $— $— $— 
Federal Home Loan Bank of Chicago$— $— $— $— $— $— $— $— 
Federal Home Loan Bank of San Francisco$— $— $— $— $— $— $— $— 
 A.M. BestMoody’sS&PFitch
As of Date of Financial Supplement
Kemper Debt Ratings:
Senior Unsecured DebtBBBBaa3BBBBBB
Insurance Company Financial Strength Ratings:
Trinity Universal Insurance Company
AA3AA
United Insurance Company of America
AA3A-A-
Reserve National Insurance Company
 ANRNRNR
Infinity Insurance Company
AA3ANR



NR - Not Rated

10


Kemper Corporation
Segment Revenues
(Dollars in Millions)
(Unaudited)
 Three Months EndedYear Ended
 Dec 31,
2021		Sep 30, 2021Jun 30, 2021Mar 31, 2021Dec 31, 2020Sep 30, 2020Jun 30, 2020Mar 31, 2020Dec 31,
2021		Dec 31,
2020
Revenues:   
Specialty Property & Casualty Insurance:
Earned Premiums:
Specialty Automobile$918.1 $920.6 $909.6 $785.4 $796.1 $792.2 $689.8 $753.2 $3,533.7 $3,031.3 
Commercial Automobile114.2 107.7 100.7 92.2 86.3 79.2 69.2 69.3 414.8 304.0 
Total Specialty Property & Casualty Insurance Earned Premiums1,032.3 1,028.3 1,010.3 877.6 882.4 871.4 759.0 822.5 3,948.5 3,335.3 
Net Investment Income37.8 37.0 42.7 35.0 37.9 30.5 16.9 28.8 152.5 114.1 
Change in Value of Alternative Energy Partnership Investments(6.7)(11.3)(3.7)(7.3)— — — — (29.0)— 
Other Income1.0 1.2 1.0 0.9 0.4 0.4 0.1 0.9 4.1 1.8 
Total Specialty Property & Casualty Insurance Revenues1,064.4 1,055.2 1,050.3 906.2 920.7 902.3 776.0 852.2 4,076.1 3,451.2 
Preferred Property & Casualty Insurance:
Earned Premiums:
Preferred Automobile101.4 102.6 103.5 103.0 107.1 110.6 99.1 114.9 410.5 431.7 
Homeowners52.7 52.5 51.3 50.8 53.3 55.0 55.6 56.8 207.3 220.7 
Other Personal8.5 8.6 8.4 8.4 8.8 8.9 8.9 9.2 33.9 35.8 
Total Preferred Property & Casualty Insurance Earned Premiums162.6 163.7 163.2 162.2 169.2 174.5 163.6 180.9 651.7 688.2 
Net Investment Income17.1 16.1 19.5 15.9 13.4 10.3 4.3 9.7 68.6 37.7 
Change in Value of Alternative Energy Partnership Investments(3.8)(6.4)(2.0)(4.1)— — — — (16.3)— 
Other Income— — — — — — 0.1 — — 0.1 
Total Preferred Property & Casualty Insurance Revenues175.9 173.4 180.7 174.0 182.6 184.8 168.0 190.6 704.0 726.0 
Life & Health Insurance:
Earned Premiums:
Life101.5 101.5 100.6 98.1 96.5 96.3 95.7 97.2 401.7 385.7 
Accident and Health47.6 47.0 47.9 47.4 50.2 48.9 50.8 49.4 189.9 199.3 
Property15.1 15.6 15.7 15.5 15.7 15.4 16.2 16.4 61.9 63.7 
Total Life & Health Insurance Earned Premiums164.2 164.1 164.2 161.0 162.4 160.6 162.7 163.0 653.5 648.7 
Net Investment Income50.8 48.4 52.4 51.1 52.8 50.7 44.3 51.0 202.7 198.8 
Change in Value of Alternative Energy Partnership Investments(3.7)(6.1)(2.0)(4.0)— — — — (15.8)— 
Other Income(1.6)0.1 0.1 0.1 — — 0.5 0.1 (1.3)0.6 
Total Life & Health Insurance Revenues209.7 206.5 214.7 208.2 215.2 211.3 207.5 214.1 839.1 848.1 
Total Segment Revenues1,450.0 1,435.1 1,445.7 1,288.4 1,318.5 1,298.4 1,151.5 1,256.9 5,619.2 5,025.3 
Income (Loss) from Change in Fair Value of Equity and Convertible Securities22.2 (0.6)40.8 52.2 73.1 45.2 71.6 (117.8)114.6 72.1 
Net Realized Gains (Losses) on Sales of Investments21.7 10.1 19.2 13.8 (0.1)10.0 11.7 16.5 64.8 38.1 
Impairment Losses(3.2)(0.6)(3.2)(4.0)0.5 (1.0)(7.0)(12.0)(11.0)(19.5)
Other3.2 0.6 — 1.6 0.1 1.1 3.1 85.4 5.4 89.7 
Total Revenues$1,493.9 $1,444.6 $1,502.5 $1,352.0 $1,392.1 $1,353.7 $1,230.9 $1,229.0 $5,793.0 $5,205.7 
 

11


Kemper Corporation
Segment Operating Results
(Dollars in Millions)
(Unaudited)
 Three Months EndedYear Ended
 Dec 31,
2021		Sep 30, 2021Jun 30, 2021Mar 31, 2021Dec 31, 2020Sep 30, 2020Jun 30, 2020Mar 31, 2020Dec 31,
2021		Dec 31,
2020
Segment Operating Income (Loss):  
Specialty Property & Casualty Insurance$(163.4)$(91.8)$(122.1)$85.2 $111.5 $149.9 $84.5 $75.0 $(292.1)$420.9 
Preferred Property & Casualty Insurance(12.0)(17.4)(13.4)3.0 19.8 (41.8)0.8 23.0 (39.8)1.8 
Life & Health Insurance4.0 (5.9)13.2 (0.8)9.6 15.2 19.9 26.5 10.5 71.2 
Total Segment Operating Income (Loss)(171.4)(115.1)(122.3)87.4 140.9 123.3 105.2 124.5 (321.4)493.9 
Partial Satisfaction of Judgment— — — — — — — 89.4 — 89.4 
Other(7.6)(15.5)(13.8)(11.5)(9.7)(11.0)(4.7)(11.1)(48.4)(36.5)
Corporate and Other Operating Income (Loss)(7.6)(15.5)(13.8)(11.5)(9.7)(11.0)(4.7)78.3 (48.4)52.9 
Total Operating Income (Loss)(179.0)(130.6)(136.1)75.9 131.2 112.3 100.5 202.8 (369.8)546.8 
Income From:
Change in Fair Value of Equity and Convertible Securities22.2 (0.6)40.8 52.2 73.1 45.2 71.6 (117.8)114.6 72.1 
Net Realized Gains (Losses) on Sales of Investments21.7 10.1 19.2 13.8 (0.1)10.0 11.7 16.5 64.8 38.1 
Impairment Losses(3.2)(0.6)(3.2)(4.0)0.5 (1.0)(7.0)(12.0)(11.0)(19.5)
Acquisition Related Transaction, Integration and Other Costs(9.1)(8.1)(10.4)(16.3)(20.0)(14.4)(17.1)(11.8)(43.9)(63.3)
Debt Extinguishment, Pension and Other Charges— — — — (64.1)— — — — (64.1)
Income (Loss) before Income Taxes$(147.4)$(129.8)$(89.7)$121.6 $120.6 $152.1 $159.7 $77.7 $(245.3)$510.1 
Segment Net Operating Income (Loss):
Specialty Property & Casualty Insurance$(125.2)$(59.3)$(91.7)$80.1 $91.1 $119.2 $67.5 $60.1 $(196.1)$337.9 
Preferred Property & Casualty Insurance(7.4)(6.4)(8.3)9.6 16.9 (32.7)0.9 18.4 (12.5)3.5 
Life & Health Insurance5.1 2.8 13.0 7.3 9.4 12.2 16.1 22.3 28.2 60.0 
Total Segment Net Operating Income (Loss)(127.5)(62.9)(87.0)97.0 117.4 98.7 84.5 100.8 (180.4)401.4 
Corporate and Other Net Operating Income (Loss) From:
Partial Satisfaction of Legal Judgment— — — — — — — 70.6 — 70.6 
Other(3.3)(12.9)(12.4)(9.8)(11.6)(7.8)(5.3)(8.5)(38.4)(33.2)
Corporate and Other Net Operating Income (Loss)(3.3)(12.9)(12.4)(9.8)(11.6)(7.8)(5.3)62.1 (38.4)37.4 
Adjusted Consolidated Net Operating Income (Loss)(130.8)(75.8)(99.4)87.2 105.8 90.9 79.2 162.9 (218.8)438.8 
Net Income (Loss) From:
Change in Fair Value of Equity and Convertible Securities17.5 (0.5)32.3 41.2 57.8 35.7 56.6 (93.1)90.5 57.0 
Net Realized Gains (Losses) on Sales of Investments17.2 7.9 15.2 10.9 (0.1)7.9 9.3 13.0 51.2 30.1 
Impairment Losses(2.5)(0.5)(2.5)(3.2)0.4 (0.8)(5.5)(9.5)(8.7)(15.4)
Acquisition Related Transaction, Integration and Other Costs(7.2)(6.4)(8.2)(12.9)(15.8)(11.4)(13.5)(9.3)(34.7)(50.0)
Debt Extinguishment, Pension and Other Charges— — — — (50.6)— — — — (50.6)
Net Income (Loss)$(105.8)$(75.3)$(62.6)$123.2 $97.5 $122.3 $126.1 $64.0 $(120.5)$409.9 
 


12


Kemper Corporation
Catastrophe Frequency and Severity
(Dollars in Millions)
(Unaudited)
Year Ended December 31, 2021
Specialty Property & Casualty Insurance SegmentPreferred Property & Casualty Insurance SegmentLife & Health Insurance SegmentConsolidated
Number of EventsLosses and LAENumber of EventsLosses and LAENumber of EventsLosses and LAENumber of EventsLosses and LAE
Range of Losses and LAE Per Event1:
Below $552 $15.7 58 $42.6 47 $5.0 65 $56.1 
$5 - $10— — 3 21.5 1 8.0 2 16.5 
$10 - $15— — 1 15.0 — — — — 
$15 - $20— — — — — — 2 35.2 
$20 - $25— — — — — — — — 
Greater Than $25— — — — — — — — 
Total52 $15.7 62 $79.1 48 $13.0 69 $107.8 
Year Ended December 31, 2020
Specialty Property & Casualty Insurance SegmentPreferred Property & Casualty Insurance SegmentLife & Health Insurance SegmentConsolidated
Number of EventsLosses and LAENumber of EventsLosses and LAENumber of EventsLosses and LAENumber of EventsLosses and LAE
Range of Losses and LAE Per Event1:
Below $555 $12.3 48 $42.0 34 $12.4 60 $51.2 
$5 - $10— — 5 40.0 — — 5 40.2 
$10 - $15— — — — — — — — 
$15 - $20— — — — — — 1 15.3 
$20 - $25— — — — — — — — 
Greater Than $25— — — — — — — — 
Total55 $12.3 53 $82.0 34 $12.4 66 $106.7 
1 Current accident year net incurred catastrophe Losses and LAE only


13

Kemper Corporation
Specialty Property & Casualty Insurance Segment
Results of Operations and Selected Financial Information
(Dollars in Millions)
(Unaudited)
 Three Months EndedYear Ended
 Dec 31,
2021		Sep 30, 2021Jun 30, 2021Mar 31, 2021Dec 31, 2020Sep 30, 2020Jun 30, 2020Mar 31, 2020Dec 31,
2021		Dec 31,
2020
Results of Operations    
Net Premiums Written$979.0 $1,024.3 $1,082.0 $972.0 $829.2 $914.2 $780.9 $911.2 $4,057.3 $3,435.5 
Total Specialty P&C
Specialty Personal Automobile918.1 920.6 909.6 785.4 796.1 792.2 689.8 753.2 3,533.7 3,031.3 
Commercial Automobile114.2 107.7 100.7 92.2 86.3 79.2 69.2 69.3 414.8 304.0 
Earned Premium$1,032.3 $1,028.3 $1,010.3 $877.6 $882.4 $871.4 $759.0 $822.5 $3,948.5 $3,335.3 
Net Investment Income37.8 37.0 42.7 35.0 37.9 30.5 16.9 28.8 152.5 114.1 
Change in Value of Alternative Energy Partnership Investments(6.7)(11.3)(3.7)(7.3)— — — — (29.0)— 
Other Income1.0 1.2 1.0 0.9 0.4 0.4 0.1 0.9 4.1 1.8 
Total Revenues1,064.4 1,055.2 1,050.3 906.2 920.7 902.3 776.0 852.2 4,076.1 3,451.2 
Incurred Losses and LAE related to:
Current Year:
Non-catastrophe Losses and LAE1,028.5 924.4 877.4 650.0 626.2 589.0 515.8 619.8 3,480.3 2,350.8 
Catastrophe Losses and LAE2.5 3.4 8.1 1.7 5.5 2.1 4.5 0.2 15.7 12.3 
Prior Years:
Non-catastrophe Losses and LAE(7.6)25.1 81.3 (1.4)(1.7)1.9 9.6 5.3 97.4 15.1 
Catastrophe Losses and LAE— (0.1)— 0.4 0.1 (0.1)— 0.2 0.3 0.2 
Total Incurred Losses and LAE1,023.4 952.8 966.8 650.7 630.1 592.9 529.9 625.5 3,593.7 2,378.4 
Insurance Expenses204.4 194.2 205.6 170.3 179.1 159.5 161.2 152.1 774.5 651.9 
Other Expenses— — — — — — 0.4 (0.4)— — 
Operating Income (Loss)(163.4)(91.8)(122.1)85.2 111.5 149.9 84.5 75.0 (292.1)420.9 
Income Tax Benefit (Expense)38.2 32.5 30.4 (5.1)(20.4)(30.7)(17.0)(14.9)96.0 (83.0)
Segment Net Operating Income (Loss) $(125.2)$(59.3)$(91.7)$80.1 $91.1 $119.2 $67.5 $60.1 $(196.1)$337.9 
Ratios Based On Earned Premiums
Current Year Non-catastrophe Losses and LAE Ratio99.6 %90.0 %86.9 %74.1 %71.0 %67.6 %67.9 %75.4 %88.1 %70.4 %
Current Year Catastrophe Losses and LAE Ratio0.2 0.3 0.8 0.2 0.6 0.2 0.6 — 0.4 0.4 
Prior Years Non-catastrophe Losses and LAE Ratio(0.7)2.4 8.0 (0.2)(0.2)0.2 1.3 0.6 2.5 0.5 
Prior Years Catastrophe Losses and LAE Ratio— — — — — — — — — — 
Total Incurred Loss and LAE Ratio99.1 92.7 95.7 74.1 71.4 68.0 69.8 76.0 91.0 71.3 
Insurance Expense Ratio19.8 18.9 20.4 19.4 20.3 18.3 21.2 18.5 19.6 19.5 
Combined Ratio118.9 %111.6 %116.1 %93.5 %91.7 %86.3 %91.0 %94.5 %110.6 %90.8 %
Underlying Combined Ratio 1
Current Year Non-catastrophe Losses and LAE Ratio99.6 %90.0 %86.9 %74.1 %71.0 %67.6 %67.9 %75.4 %88.1 %70.4 %
Insurance Expense Ratio19.8 18.9 20.4 19.4 20.3 18.3 21.2 18.5 19.6 19.5 
Underlying Combined Ratio119.4 %108.9 %107.3 %93.5 %91.3 %85.9 %89.1 %93.9 %107.7 %89.9 %
Non-GAAP Measure Reconciliation
Combined Ratio as Reported118.9 %111.6 %116.1 %93.5 %91.7 %86.3 %91.0 %94.5 %110.6 %90.8 %
Less:
Current Year Catastrophe Losses and LAE Ratio0.2 0.3 0.8 0.2 0.6 0.2 0.6 — 0.4 0.4 
Prior Years Non-catastrophe Losses and LAE Ratio(0.7)2.4 8.0 (0.2)(0.2)0.2 1.3 0.6 2.5 0.5 
Prior Years Catastrophe Losses and LAE Ratio— — — — — — — — — — 
Underlying Combined Ratio119.4 %108.9 %107.3 %93.5 %91.3 %85.9 %89.1 %93.9 %107.7 %89.9 %
1 Underlying Combined Ratio is a non-GAAP measure, which is computed as the difference between three operating ratios: the combined ratio, the effect of catastrophes (excluding development of prior-year catastrophes) on the combined ratio and the effect of prior-year reserve development at the reporting date (including development on prior-year catastrophes) on the combined ratio.
14


Kemper Corporation
Specialty Property & Casualty Insurance Segment
Results of Operations and Selected Financial Information (continued)
(Dollars in Millions)
(Unaudited)
Dec 31,
2021		Sep 30, 2021Jun 30, 2021Mar 31, 2021Dec 31, 2020Sep 30, 2020Jun 30, 2020Mar 31, 2020
Insurance Reserves:
Non-Standard Automobile$1,985.8 $1,841.1 $1,703.1 $1,304.7 $1,308.3 $1,271.9 $1,252.6 $1,326.3 
Commercial Automobile333.9 302.4 281.6 257.2 236.5 223.0 221.0 215.1 
Insurance Reserves$2,319.7 $2,143.5 $1,984.7 $1,561.9 $1,544.8 $1,494.9 $1,473.6 $1,541.4 
Insurance Reserves:
Loss and Allocated LAE Reserves:
Case and Allocated LAE$1,157.9 $1,071.1 $1,005.8 $799.7 $744.6 $718.8 $667.9 $716.0 
Incurred but Not Reported953.0 881.6 810.2 614.1 653.6 631.8 660.8 679.1 
Total Loss Reserves2,110.9 1,952.7 1,816.0 1,413.8 1,398.2 1,350.6 1,328.7 1,395.1 
Unallocated LAE Reserves208.8 190.8 168.7 148.1 146.6 144.3 144.9 146.3 
Insurance Reserves$2,319.7 $2,143.5 $1,984.7 $1,561.9 $1,544.8 $1,494.9 $1,473.6 $1,541.4 

15

Kemper Corporation
Specialty Property & Casualty Insurance Segment
Specialty Personal Automobile Insurance - Results of Operations and Selected Financial Information
(Dollars in Millions)
(Unaudited)
 Three Months EndedYear Ended
 Dec 31,
2021		Sep 30, 2021Jun 30, 2021Mar 31, 2021Dec 31, 2020Sep 30, 2020Jun 30, 2020Mar 31, 2020Dec 31,
2021		Dec 31,
2020
Results of Operations   
Net Premiums Written$858.7 $902.7 $964.3 $861.5 $736.3 $819.4 $700.5 $830.3 $3,587.2 $3,086.5 
Earned Premiums$918.1 $920.6 $909.6 $785.4 $796.1 $792.2 $689.8 $753.2 $3,533.7 $3,031.3 
Net Investment Income31.5 30.9 35.4 29.1 32.4 26.2 15.2 24.8 126.9 98.6 
Change in Value of Alternative Energy Partnership Investments(5.3)(8.9)(2.9)(5.8)— — — — (22.9)— 
Other Income1.0 1.2 1.0 0.9 0.4 0.4 0.1 0.8 4.1 1.7 
Total Revenues945.3 943.8 943.1 809.6 828.9 818.8 705.1 778.8 3,641.8 3,131.6 
Incurred Losses and LAE related to:
Current Year:
Non-catastrophe Losses and LAE938.5 843.9 805.1 586.4 569.1 543.4 472.4 576.0 3,173.9 2,160.9 
Catastrophe Losses and LAE2.3 3.1 7.4 1.6 5.2 2.0 4.2 0.2 14.4 11.6 
Prior Years:
Non-catastrophe Losses and LAE(11.7)25.1 76.0 (4.4)(3.1)2.1 11.2 17.8 85.0 28.0 
Catastrophe Losses and LAE— (0.1)— 0.4 — (0.1)0.1 0.2 0.3 0.2 
Total Incurred Losses and LAE929.1 872.0 888.5 584.0 571.2 547.4 487.9 594.2 3,273.6 2,200.7 
Insurance Expenses184.3 176.0 187.7 155.3 162.8 145.6 146.7 139.2 703.3 594.3 
Other Expenses— — — — — — 0.4 (0.4)— — 
Operating Income (Loss)(168.1)(104.2)(133.1)70.3 94.9 125.8 70.1 45.8 (335.1)336.6 
Income Benefit (Expense)38.4 32.4 31.8 (4.6)(17.5)(25.7)(14.2)(8.8)98.0 (66.2)
Total Product Line Net Operating Income (Loss)$(129.7)$(71.8)$(101.3)$65.7 $77.4 $100.1 $55.9 $37.0 $(237.1)$270.4 
Ratios Based On Earned Premiums
Current Year Non-catastrophe Losses and LAE Ratio102.2 %91.7 %88.5 %74.7 %71.4 %68.5 %68.5 %76.5 %89.8 %71.3 %
Current Year Catastrophe Losses and LAE Ratio0.3 0.3 0.8 0.2 0.7 0.3 0.6 — 0.4 0.4 
Prior Years Non-catastrophe Losses and LAE Ratio(1.3)2.7 8.4 (0.6)(0.4)0.3 1.6 2.4 2.4 0.9 
Prior Years Catastrophe Losses and LAE Ratio— — — 0.1 — — — — — — 
Total Incurred Loss and LAE Ratio101.2 94.7 97.7 74.4 71.7 69.1 70.7 78.9 92.6 72.6 
Insurance Expense Ratio20.1 19.1 20.6 19.8 20.4 18.4 21.3 18.5 19.9 19.6 
Combined Ratio121.3 %113.8 %118.3 %94.2 %92.1 %87.5 %92.0 %97.4 %112.5 %92.2 %
Underlying Combined Ratio 1
Current Year Non-catastrophe Losses and LAE Ratio102.2 %91.7 %88.5 %74.7 %71.4 %68.5 %68.5 %76.5 %89.8 %71.3 %
Insurance Expense Ratio20.1 19.1 20.6 19.8 20.4 18.4 21.3 18.5 19.9 19.6 
Underlying Combined Ratio122.3 %110.8 %109.1 %94.5 %91.8 %86.9 %89.8 %95.0 %109.7 %90.9 %
Non-GAAP Measure Reconciliation
Combined Ratio121.3 %113.8 %118.3 %94.2 %92.1 %87.5 %92.0 %97.4 %112.5 %92.2 %
Less:
Current Year Catastrophe Losses and LAE Ratio0.3 0.3 0.8 0.2 0.7 0.3 0.6 — 0.4 0.4 
Prior Years Non-catastrophe Losses and LAE Ratio(1.3)2.7 8.4 (0.6)(0.4)0.3 1.6 2.4 2.4 0.9 
Prior Years Catastrophe Losses and LAE Ratio— — — 0.1 — — — — — — 
Underlying Combined Ratio122.3 %110.8 %109.1 %94.5 %91.8 %86.9 %89.8 %95.0 %109.7 %90.9 %
1 Underlying Combined Ratio is a non-GAAP measure, which is computed as the difference between three operating ratios: the combined ratio, the effect of catastrophes (excluding development of prior-year catastrophes) on the combined ratio and the effect of prior-year reserve development at the reporting date (including development on prior-year catastrophes) on the combined ratio.
16

Kemper Corporation
Specialty Property & Casualty Insurance Segment
Commercial Automobile Insurance - Results of Operations and Selected Financial Information
(Dollars in Millions)
(Unaudited)
 Three Months EndedYear Ended
 Dec 31,
2021		Sep 30, 2021Jun 30, 2021Mar 31, 2021Dec 31, 2020Sep 30, 2020Jun 30, 2020Mar 31, 2020Dec 31,
2021		Dec 31,
2020
Results of Operations   
Net Premiums Written$120.3 $121.6 $117.7 $110.5 $92.9 $94.8 $80.4 $80.9 $470.1 $349.0 
Earned Premiums$114.2 $107.7 $100.7 $92.2 $86.3 $79.2 $69.2 $69.3 $414.8 $304.0 
Net Investment Income6.3 6.1 7.3 5.9 5.5 4.3 1.7 4.0 25.6 15.5 
Change in Value of Alternative Energy Partnership Investments(1.4)(2.4)(0.8)(1.5)— — — — (6.1)— 
Other Income— — — — — — — 0.1 — 0.1 
Total Revenues119.1 111.4 107.2 96.6 91.8 83.5 70.9 73.4 434.3 319.6 
Incurred Losses and LAE related to:
Current Year:
Non-catastrophe Losses and LAE90.0 80.5 72.3 63.6 57.1 45.6 43.4 43.8 306.4 189.9 
Catastrophe Losses and LAE0.2 0.3 0.7 0.1 0.3 0.1 0.3 — 1.3 0.7 
Prior Years:
Non-catastrophe Losses and LAE4.1 — 5.3 3.0 1.4 (0.2)(1.6)(12.5)12.4 (12.9)
Catastrophe Losses and LAE— — — — 0.1 — (0.1)— — — 
Total Incurred Losses and LAE94.3 80.8 78.3 66.7 58.9 45.5 42.0 31.3 320.1 177.7 
Insurance Expenses20.1 18.2 17.9 15.0 16.3 13.9 14.5 12.9 71.2 57.6 
Operating Income (Loss)4.7 12.4 11.0 14.9 16.6 24.1 14.4 29.2 43.0 84.3 
Income Tax Benefit (Expense)(0.2)0.1 (1.4)(0.5)(2.9)(5.0)(2.8)(6.1)(2.0)(16.8)
Total Product Line Net Operating Income (Loss)$4.5 $12.5 $9.6 $14.4 $13.7 $19.1 $11.6 $23.1 $41.0 $67.5 
Ratios Based On Earned Premiums
Current Year Non-catastrophe Losses and LAE Ratio78.8 %74.7 %71.8 %68.9 %66.3 %57.6 %62.7 %63.2 %73.9 %62.5 %
Current Year Catastrophe Losses and LAE Ratio0.2 0.3 0.7 0.1 0.3 0.1 0.4 — 0.3 0.2 
Prior Years Non-catastrophe Losses and LAE Ratio3.6 — 5.3 3.3 1.6 (0.3)(2.3)(18.0)3.0 (4.2)
Prior Years Catastrophe Losses and LAE Ratio— — — — 0.1 — (0.1)— — — 
Total Incurred Loss and LAE Ratio82.6 75.0 77.8 72.3 68.3 57.4 60.7 45.2 77.2 58.5 
Insurance Expense Ratio17.6 16.9 17.8 16.3 18.9 17.6 21.0 18.6 17.2 18.9 
Combined Ratio100.2 %91.9 %95.6 %88.6 %87.2 %75.0 %81.7 %63.8 %94.4 %77.4 %
Underlying Combined Ratio 1
Current Year Non-catastrophe Losses and LAE Ratio78.8 %74.7 %71.8 %68.9 %66.3 %57.6 %62.7 %63.2 %73.9 %62.5 %
Insurance Expense Ratio17.6 16.9 17.8 16.3 18.9 17.6 21.0 18.6 17.2 18.9 
Underlying Combined Ratio96.4 %91.6 %89.6 %85.2 %85.2 %75.2 %83.7 %81.8 %91.1 %81.4 %
Non-GAAP Measure Reconciliation
Combined Ratio100.2 %91.9 %95.6 %88.6 %87.2 %75.0 %81.7 %63.8 %94.4 %77.4 %
Less:
Current Year Catastrophe Losses and LAE Ratio0.2 0.3 0.7 0.1 0.3 0.1 0.4 — 0.3 0.2 
Prior Years Non-catastrophe Losses and LAE Ratio3.6 — 5.3 3.3 1.6 (0.3)(2.3)(18.0)3.0 (4.2)
Prior Years Catastrophe Losses and LAE Ratio— — — — 0.1 — (0.1)— — — 
Underlying Combined Ratio96.4 %91.6 %89.6 %85.2 %85.2 %75.2 %83.7 %81.8 %91.1 %81.4 %
1 Underlying Combined Ratio is a non-GAAP measure, which is computed as the difference between three operating ratios: the combined ratio, the effect of catastrophes (excluding development of prior-year catastrophes) on the combined ratio and the effect of prior-year reserve development at the reporting date (including development on prior-year catastrophes) on the combined ratio.
17

Kemper Corporation
Preferred Property & Casualty Insurance Segment
Results of Operations and Selected Financial Information
(Dollars in Millions)
(Unaudited)
 Three Months EndedYear Ended
 Dec 31,
2021		Sep 30, 2021Jun 30, 2021Mar 31, 2021Dec 31, 2020Sep 30, 2020Jun 30, 2020Mar 31, 2020Dec 31,
2021		Dec 31,
2020
Results of Operations   
Net Premiums Written$153.2 $164.8 $169.6 $154.4 $155.2 $172.2 $161.5 $164.1 $642.0 $653.0 
Earned Premiums$162.6 $163.7 $163.2 $162.2 $169.2 $174.5 $163.6 $180.9 $651.7 $688.2 
Net Investment Income17.1 16.1 19.5 15.9 13.4 10.3 4.3 9.7 68.6 37.7 
Change in Value of Alternative Energy Partnership Investments(3.8)(6.4)(2.0)(4.1)— — — — (16.3)— 
Other Income— — — — — — 0.1 — — 0.1 
Total Revenues175.9 173.4 180.7 174.0 182.6 184.8 168.0 190.6 704.0 726.0 
Incurred Losses and LAE related to:
Current Year:
Non-catastrophe Losses and LAE122.4 115.6 116.2 96.2 107.1 102.8 82.5 108.5 450.4 400.9 
Catastrophe Losses and LAE7.5 23.4 24.2 24.0 (5.3)61.9 20.6 4.8 79.1 82.0 
Prior Years:
Non-catastrophe Losses and LAE8.4 — 5.0 0.1 9.5 6.3 8.2 (3.3)13.5 20.7 
Catastrophe Losses and LAE(2.0)0.1 (3.4)(0.3)0.1 0.1 0.4 (1.1)(5.6)(0.5)
Total Incurred Losses and LAE136.3 139.1 142.0 120.0 111.4 171.1 111.7 108.9 537.4 503.1 
Insurance Expenses51.6 51.7 52.1 51.0 51.4 55.5 55.5 58.7 206.4 221.1 
Operating Income (Loss)(12.0)(17.4)(13.4)3.0 19.8 (41.8)0.8 23.0 (39.8)1.8 
Income Tax Benefit (Expense)4.6 11.0 5.1 6.6 (2.9)9.1 0.1 (4.6)27.3 1.7 
Segment Net Operating Income (Loss)$(7.4)$(6.4)$(8.3)$9.6 $16.9 $(32.7)$0.9 $18.4 $(12.5)$3.5 
Ratios Based On Earned Premiums
Current Year Non-catastrophe Losses and LAE Ratio75.2 %70.6 %71.2 %59.3 %63.2 %58.9 %50.5 %59.9 %69.2 %58.3 %
Current Year Catastrophe Losses and LAE Ratio4.6 14.3 14.8 14.8 (3.1)35.5 12.6 2.7 12.1 11.9 
Prior Years Non-catastrophe Losses and LAE Ratio5.2 — 3.1 0.1 5.6 3.6 5.0 (1.8)2.1 3.0 
Prior Years Catastrophe Losses and LAE Ratio(1.2)0.1 (2.1)(0.2)0.1 0.1 0.2 (0.6)(0.9)(0.1)
Total Incurred Loss and LAE Ratio83.8 85.0 87.0 74.0 65.8 98.1 68.3 60.2 82.5 73.1 
Insurance Expense Ratio31.7 31.6 31.9 31.4 30.4 31.8 33.9 32.4 31.7 32.1 
Combined Ratio115.5 %116.6 %118.9 %105.4 %96.2 %129.9 %102.2 %92.6 %114.2 %105.2 %
Underlying Combined Ratio 1
Current Year Non-catastrophe Losses and LAE Ratio75.2 %70.6 %71.2 %59.3 %63.2 %58.9 %50.5 %59.9 %69.2 %58.3 %
Insurance Expense Ratio31.7 31.6 31.9 31.4 30.4 31.8 33.9 32.4 31.7 32.1 
Underlying Combined Ratio106.9 %102.2 %103.1 %90.7 %93.6 %90.7 %84.4 %92.3 %100.9 %90.4 %
Non-GAAP Measure Reconciliation
Combined Ratio as Reported115.5 %116.6 %118.9 %105.4 %96.2 %129.9 %102.2 %92.6 %114.2 %105.2 %
Less:
Current Year Catastrophe Losses and LAE Ratio4.6 14.3 14.8 14.8 (3.1)35.5 12.6 2.7 12.1 11.9 
Prior Years Non-catastrophe Losses and LAE Ratio5.2 — 3.1 0.1 5.6 3.6 5.0 (1.8)2.1 3.0 
Prior Years Catastrophe Losses and LAE Ratio(1.2)0.1 (2.1)(0.2)0.1 0.1 0.2 (0.6)(0.9)(0.1)
Underlying Combined Ratio106.9 %102.2 %103.1 %90.7 %93.6 %90.7 %84.4 %92.3 %100.9 %90.4 %
1 Underlying Combined Ratio is a non-GAAP measure, which is computed as the difference between three operating ratios: the combined ratio, the effect of catastrophes (excluding development of prior-year catastrophes) on the combined ratio and the effect of prior-year reserve development at the reporting date (including development on prior-year catastrophes) on the combined ratio.
18


Kemper Corporation
Preferred Property & Casualty Insurance Segment
Results of Operations and Selected Financial Information (continued)
(Dollars in Millions)
(Unaudited)
Dec 31,
2021		Sep 30, 2021Jun 30, 2021Mar 31, 2021Dec 31, 2020Sep 30, 2020Jun 30, 2020Mar 31, 2020
Insurance Reserves:
Preferred Automobile$308.6 $290.0 $282.9 $275.9 $281.3 $265.2 $252.8 $254.8 
Homeowners95.4 108.5 110.7 107.6 104.0 137.9 99.5 90.8 
Other Personal29.2 30.1 31.0 30.7 26.3 25.5 25.7 28.8 
Insurance Reserves$433.2 $428.6 $424.6 $414.2 $411.6 $428.6 $378.0 $374.4 
Insurance Reserves:
Loss and Allocated LAE Reserves:
Case and Allocated LAE$272.5 $280.8 $282.3 $282.0 $262.2 $266.8 $230.7 $231.1 
Incurred but Not Reported131.9 120.4 116.1 105.6 122.0 134.2 119.6 115.1 
Total Loss Reserves404.4 401.2 398.4 387.6 384.2 401.0 350.3 346.2 
Unallocated LAE Reserves28.8 27.4 26.2 26.6 27.4 27.6 27.7 28.2 
Insurance Reserves$433.2 $428.6 $424.6 $414.2 $411.6 $428.6 $378.0 $374.4 

19

Kemper Corporation
Preferred Property & Casualty Insurance Segment
Preferred Personal Automobile Insurance - Results of Operations and Selected Financial Information
(Dollars in Millions)
(Unaudited)
 Three Months EndedYear Ended
 Dec 31,
2021		Sep 30, 2021Jun 30, 2021Mar 31, 2021Dec 31, 2020Sep 30, 2020Jun 30, 2020Mar 31, 2020Dec 31,
2021		Dec 31,
2020
Results of Operations   
Net Premiums Written$95.2 $99.9 $104.4 $100.4 $98.8 $107.2 $95.6 $105.9 $399.9 $407.5 
Earned Premiums$101.4 $102.6 $103.5 $103.0 $107.1 $110.6 $99.1 $114.9 $410.5 $431.7 
Net Investment Income7.9 7.4 9.0 7.3 7.9 6.1 2.5 5.8 31.6 22.3 
Change in Value of Alternative Energy Partnership Investments(1.7)(3.0)(0.9)(1.9)— — — — (7.5)— 
Other Income— — — — — — 0.1 — — 0.1 
Total Revenues107.6 107.0 111.6 108.4 115.0 116.7 101.7 120.7 434.6 454.1 
Incurred Losses and LAE related to:
Current Year:
Non-catastrophe Losses and LAE96.2 84.8 81.6 67.8 78.0 72.2 53.8 75.9 330.4 279.9 
Catastrophe Losses and LAE1.3 2.7 2.8 0.6 0.4 1.8 2.0 0.2 7.4 4.4 
Prior Years:
Non-catastrophe Losses and LAE7.3 0.1 3.6 1.2 9.9 5.9 9.7 2.2 12.2 27.7 
Catastrophe Losses and LAE(0.1)0.1 (0.2)0.1 (0.4)(0.2)(0.3)(0.1)(0.1)(1.0)
Total Incurred Losses and LAE104.7 87.7 87.8 69.7 87.9 79.7 65.2 78.2 349.9 311.0 
Insurance Expenses32.7 32.7 33.6 32.8 32.3 34.7 34.0 36.1 131.8 137.1 
Operating Income (Loss)(29.8)(13.4)(9.8)5.9 (5.2)2.3 2.5 6.4 (47.1)6.0 
Income Tax Benefit (Expense)7.2 6.2 3.1 2.1 1.9 (0.3)(0.4)(1.2)18.6 — 
Total Product Line Net Operating Income (Loss)$(22.6)$(7.2)$(6.7)$8.0 $(3.3)$2.0 $2.1 $5.2 $(28.5)$6.0 
Ratios Based On Earned Premiums
Current Year Non-catastrophe Losses and LAE Ratio94.9 %82.7 %78.8 %65.8 %72.9 %65.4 %54.3 %66.1 %80.4 %64.8 %
Current Year Catastrophe Losses and LAE Ratio1.3 2.6 2.7 0.6 0.4 1.6 2.0 0.2 1.8 1.0 
Prior Years Non-catastrophe Losses and LAE Ratio7.2 0.1 3.5 1.2 9.2 5.3 9.8 1.9 3.0 6.4 
Prior Years Catastrophe Losses and LAE Ratio(0.1)0.1 (0.2)0.1 (0.4)(0.2)(0.3)(0.1)— (0.2)
Total Incurred Loss and LAE Ratio103.3 85.5 84.8 67.7 82.1 72.1 65.8 68.1 85.2 72.0 
Insurance Expense Ratio32.2 31.9 32.5 31.8 30.2 31.4 34.3 31.4 32.1 31.8 
Combined Ratio135.5 %117.4 %117.3 %99.5 %112.3 %103.5 %100.1 %99.5 %117.3 %103.8 %
Underlying Combined Ratio 1
Current Year Non-catastrophe Losses and LAE Ratio94.9 %82.7 %78.8 %65.8 %72.9 %65.4 %54.3 %66.1 %80.4 %64.8 %
Insurance Expense Ratio32.2 31.9 32.5 31.8 30.2 31.4 34.3 31.4 32.1 31.8 
Underlying Combined Ratio127.1 %114.6 %111.3 %97.6 %103.1 %96.8 %88.6 %97.5 %112.5 %96.6 %
Non-GAAP Measure Reconciliation
Combined Ratio135.5 %117.4 %117.3 %99.5 %112.3 %103.5 %100.1 %99.5 %117.3 %103.8 %
Less:
Current Year Catastrophe Losses and LAE Ratio1.3 2.6 2.7 0.6 0.4 1.6 2.0 0.2 1.8 1.0 
Prior Years Non-catastrophe Losses and LAE Ratio7.2 0.1 3.5 1.2 9.2 5.3 9.8 1.9 3.0 6.4 
Prior Years Catastrophe Losses and LAE Ratio(0.1)0.1 (0.2)0.1 (0.4)(0.2)(0.3)(0.1)— (0.2)
Underlying Combined Ratio127.1 %114.6 %111.3 %97.6 %103.1 %96.8 %88.6 %97.5 %112.5 %96.6 %
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.
20

Kemper Corporation
Preferred Property & Casualty Insurance Segment
Homeowners and Other Personal Insurance - Results of Operations and Selected Financial Information
(Dollars in Millions)
(Unaudited)
 Three Months EndedYear Ended
 Dec 31,
2021		Sep 30, 2021Jun 30, 2021Mar 31, 2021Dec 31, 2020Sep 30, 2020Jun 30, 2020Mar 31, 2020Dec 31,
2021		Dec 31,
2020
Results of Operations   
Net Premiums Written$58.0 $64.9 $65.2 $54.0 $56.4 $65.0 $65.9 $58.2 $242.1 $245.5 
Earned Premiums$61.2 $61.1 $59.7 $59.2 $62.1 $63.9 $64.5 $66.0 $241.2 $256.5 
Net Investment Income9.2 8.7 10.5 8.6 5.5 4.2 1.8 3.9 37.0 15.4 
Change in Value of Alternative Energy Partnership Investments(2.1)(3.4)(1.1)(2.2)— — — — (8.8)— 
Total Revenues68.3 66.4 69.1 65.6 67.6 68.1 66.3 69.9 269.4 271.9 
Incurred Losses and LAE related to:
Current Year:
Non-catastrophe Losses and LAE26.2 30.8 34.6 28.4 29.1 30.6 28.7 32.6 120.0 121.0 
Catastrophe Losses and LAE6.2 20.7 21.4 23.4 (5.7)60.1 18.6 4.6 71.7 77.6 
Prior Years:
Non-catastrophe Losses and LAE1.1 (0.1)1.4 (1.1)(0.4)0.4 (1.5)(5.5)1.3 (7.0)
Catastrophe Losses and LAE(1.9)— (3.2)(0.4)0.5 0.3 0.7 (1.0)(5.5)0.5 
Total Incurred Losses and LAE31.6 51.4 54.2 50.3 23.5 91.4 46.5 30.7 187.5 192.1 
Insurance Expenses18.9 19.0 18.5 18.2 19.1 20.8 21.5 22.6 74.6 84.0 
Operating Income (Loss)17.8 (4.0)(3.6)(2.9)25.0 (44.1)(1.7)16.6 7.3 (4.2)
Income Tax Benefit (Expense)(2.6)4.8 2.0 4.5 (4.8)9.4 0.5 (3.4)8.7 1.7 
Total Product Line Net Operating Income (Loss)$15.2 $0.8 $(1.6)$1.6 $20.2 $(34.7)$(1.2)$13.2 $16.0 $(2.5)
Ratios Based On Earned Premiums
Current Year Non-catastrophe Losses and LAE Ratio42.8 %50.4 %58.1 %48.1 %46.8 %47.8 %44.5 %49.3 %49.8 %47.1 %
Current Year Catastrophe Losses and LAE Ratio10.1 33.9 35.8 39.5 (9.2)94.1 28.8 7.0 29.7 30.3 
Prior Years Non-catastrophe Losses and LAE Ratio1.8 (0.2)2.3 (1.9)(0.6)0.6 (2.3)(8.3)0.5 (2.7)
Prior Years Catastrophe Losses and LAE Ratio(3.1)— (5.4)(0.7)0.8 0.5 1.1 (1.5)(2.3)0.2 
Total Incurred Loss and LAE Ratio51.6 84.1 90.8 85.0 37.8 143.0 72.1 46.5 77.7 74.9 
Insurance Expense Ratio30.9 31.1 31.0 30.7 30.8 32.6 33.3 34.2 30.9 32.7 
Combined Ratio82.5 %115.2 %121.8 %115.7 %68.6 %175.6 %105.4 %80.7 %108.6 %107.6 %
Underlying Combined Ratio 1
Current Year Non-catastrophe Losses and LAE Ratio42.8 %50.4 %58.1 %48.1 %46.8 %47.8 %44.5 %49.3 %49.8 %47.1 %
Insurance Expense Ratio30.9 31.1 31.0 30.7 30.8 32.6 33.3 34.2 30.9 32.7 
Underlying Combined Ratio73.7 %81.5 %89.1 %78.8 %77.6 %80.4 %77.8 %83.5 %80.7 %79.8 %
Non-GAAP Measure Reconciliation
Combined Ratio82.5 %115.2 %121.8 %115.7 %68.6 %175.6 %105.4 %80.7 %108.6 %107.6 %
Less:
Current Year Catastrophe Losses and LAE Ratio10.1 33.9 35.8 39.5 (9.2)94.1 28.8 7.0 29.7 30.3 
Prior Years Non-catastrophe Losses and LAE Ratio1.8 (0.2)2.3 (1.9)(0.6)0.6 (2.3)(8.3)0.5 (2.7)
Prior Years Catastrophe Losses and LAE Ratio(3.1)— (5.4)(0.7)0.8 0.5 1.1 (1.5)(2.3)0.2 
Underlying Combined Ratio73.7 %81.5 %89.1 %78.8 %77.6 %80.4 %77.8 %83.5 %80.7 %79.8 %
1Underlying Combined Ratio is a non-GAAP measure, which is computed as the difference between three operating ratios: the combined ratio, the effect of catastrophes (excluding development of prior-year catastrophes) on the combined ratio and the effect of prior-year reserve development at the reporting date (including development on prior-year catastrophes) on the combined ratio.
21


Kemper Corporation
Preferred Property & Casualty Insurance Segment
Homeowners Insurance - Results of Operations and Selected Financial Information
(Dollars in Millions)
(Unaudited)
 Three Months EndedYear Ended
 Dec 31,
2021		Sep 30, 2021Jun 30, 2021Mar 31, 2021Dec 31, 2020Sep 30, 2020Jun 30, 2020Mar 31, 2020Dec 31,
2021		Dec 31,
2020
Results of Operations   
Net Premiums Written$49.9 $56.1 $56.3 $46.1 $48.3 $55.7 $57.2 $49.9 $208.4 $211.1 
Earned Premiums$52.7 $52.5 $51.3 $50.8 $53.3 $55.0 $55.6 $56.8 $207.3 $220.7 
Net Investment Income8.3 7.9 9.6 7.8 5.0 3.8 1.6 3.6 33.6 14.0 
Change in Value of Alternative Energy Partnership Investments(1.9)(3.1)(1.0)(2.0)— — — — (8.0)— 
Total Revenues59.1 57.3 59.9 56.6 58.3 58.8 57.2 60.4 232.9 234.7 
Incurred Losses and LAE related to:
Current Year:
Non-catastrophe Losses and LAE22.8 26.6 30.5 24.2 26.5 28.1 25.4 28.7 104.1 108.7 
Catastrophe Losses and LAE6.0 20.4 21.8 22.0 (10.1)58.6 18.2 4.5 70.2 71.2 
Prior Years:
Non-catastrophe Losses and LAE(0.1)(0.2)0.2 (2.5)0.3 2.0 (0.8)(4.3)(2.6)(2.8)
Catastrophe Losses and LAE(2.1)0.1 (1.8)(0.1)0.6 0.2 0.6 (0.7)(3.9)0.7 
Total Incurred Losses and LAE26.6 46.9 50.7 43.6 17.3 88.9 43.4 28.2 167.8 177.8 
Insurance Expenses16.3 16.3 16.1 15.7 16.6 18.2 18.6 19.5 64.4 72.9 
Operating Income (Loss)16.2 (5.9)(6.9)(2.7)24.4 (48.3)(4.8)12.7 0.7 (16.0)
Income Tax Benefit (Expense)(2.4)4.8 2.6 4.1 (4.7)10.3 1.1 (2.6)9.1 4.1 
Total Product Line Net Operating Income (Loss)$13.8 $(1.1)$(4.3)$1.4 $19.7 $(38.0)$(3.7)$10.1 $9.8 $(11.9)
Ratios Based On Earned Premiums
Current Year Non-catastrophe Losses and LAE Ratio43.3 %50.6 %59.4 %47.6 %49.7 %51.1 %45.7 %50.5 %50.2 %49.3 %
Current Year Catastrophe Losses and LAE Ratio11.4 38.9 42.5 43.3 (18.9)106.5 32.7 7.9 33.9 32.3 
Prior Years Non-catastrophe Losses and LAE Ratio(0.2)(0.4)0.4 (4.9)0.6 3.6 (1.4)(7.6)(1.3)(1.3)
Prior Years Catastrophe Losses and LAE Ratio(4.0)0.2 (3.5)(0.2)1.1 0.4 1.1 (1.2)(1.9)0.3 
Total Incurred Loss and LAE Ratio50.5 89.3 98.8 85.8 32.5 161.6 78.1 49.6 80.9 80.6 
Insurance Expense Ratio30.9 31.0 31.4 30.9 31.1 33.1 33.5 34.3 31.1 33.0 
Combined Ratio81.4 %120.3 %130.2 %116.7 %63.6 %194.7 %111.6 %83.9 %112.0 %113.6 %
Underlying Combined Ratio 1
Current Year Non-catastrophe Losses and LAE Ratio43.3 %50.6 %59.4 %47.6 %49.7 %51.1 %45.7 %50.5 %50.2 %49.3 %
Insurance Expense Ratio30.9 31.0 31.4 30.9 31.1 33.1 33.5 34.3 31.1 33.0 
Underlying Combined Ratio74.2 %81.6 %90.8 %78.5 %80.8 %84.2 %79.2 %84.8 %81.3 %82.3 %
Non-GAAP Measure Reconciliation
Combined Ratio81.4 %120.3 %130.2 %116.7 %63.6 %194.7 %111.6 %83.9 %112.0 %113.6 %
Less:
Current Year Catastrophe Losses and LAE Ratio11.4 38.9 42.5 43.3 (18.9)106.5 32.7 7.9 33.9 32.3 
Prior Years Non-catastrophe Losses and LAE Ratio(0.2)(0.4)0.4 (4.9)0.6 3.6 (1.4)(7.6)(1.3)(1.3)
Prior Years Catastrophe Losses and LAE Ratio(4.0)0.2 (3.5)(0.2)1.1 0.4 1.1 (1.2)(1.9)0.3 
Underlying Combined Ratio74.2 %81.6 %90.8 %78.5 %80.8 %84.2 %79.2 %84.8 %81.3 %82.3 %
1 Underlying Combined Ratio is a non-GAAP measure, which is computed as the difference between three operating ratios: the combined ratio, the effect of catastrophes (excluding development of prior-year catastrophes) on the combined ratio and the effect of prior-year reserve development at the reporting date (including development on prior-year catastrophes) on the combined ratio.
22

Kemper Corporation
Preferred Property & Casualty Insurance Segment
Other Personal Insurance - Results of Operations and Selected Financial Information
(Dollars in Millions)
(Unaudited)
 Three Months EndedYear Ended
 Dec 31,
2021		Sep 30, 2021Jun 30, 2021Mar 31, 2021Dec 31, 2020Sep 30, 2020Jun 30, 2020Mar 31, 2020Dec 31,
2021		Dec 31,
2020
Results of Operations   
Net Premiums Written$8.1 $8.8 $8.9 $7.9 $8.1 $9.3 $8.7 $8.3 $33.7 $34.4 
Earned Premiums$8.5 $8.6 $8.4 $8.4 $8.8 $8.9 $8.9 $9.2 $33.9 $35.8 
Net Investment Income0.9 0.8 0.9 0.8 0.5 0.4 0.2 0.3 3.4 1.4 
Change in Value of Alternative Energy Partnership Investments(0.2)(0.3)(0.1)(0.2)— — — — (0.8)— 
Total Revenues9.2 9.1 9.2 9.0 9.3 9.3 9.1 9.5 36.5 37.2 
Incurred Losses and LAE related to:
Current Year:
Non-catastrophe Losses and LAE3.4 4.2 4.1 4.2 2.6 2.5 3.3 3.9 15.9 12.3 
Catastrophe Losses and LAE0.2 0.3 (0.4)1.4 4.4 1.5 0.4 0.1 1.5 6.4 
Prior Years:
Non-catastrophe Losses and LAE1.2 0.1 1.2 1.4 (0.7)(1.6)(0.7)(1.2)3.9 (4.2)
Catastrophe Losses and LAE0.2 (0.1)(1.4)(0.3)(0.1)0.1 0.1 (0.3)(1.6)(0.2)
Total Incurred Losses and LAE5.0 4.5 3.5 6.7 6.2 2.5 3.1 2.5 19.7 14.3 
Insurance Expenses2.6 2.7 2.4 2.5 2.5 2.6 2.9 3.1 10.2 11.1 
Operating Income (Loss)1.6 1.9 3.3 (0.2)0.6 4.2 3.1 3.9 6.6 11.8 
Income Tax Benefit (Expense)(0.2)— (0.6)0.4 (0.1)(0.9)(0.6)(0.8)(0.4)(2.4)
Total Product Line Net Operating Income (Loss)$1.4 $1.9 $2.7 $0.2 $0.5 $3.3 $2.5 $3.1 $6.2 $9.4 
Ratios Based On Earned Premiums
Current Year Non-catastrophe Losses and LAE Ratio39.9 %48.8 %48.9 %50.0 %29.6 %28.1 %37.1 %42.4 %46.9 %34.3 %
Current Year Catastrophe Losses and LAE Ratio2.4 3.5 (4.8)16.7 50.0 16.9 4.5 1.1 4.4 17.9 
Prior Years Non-catastrophe Losses and LAE Ratio14.1 1.2 14.3 16.7 (8.0)(18.0)(7.9)(13.0)11.5 (11.7)
Prior Years Catastrophe Losses and LAE Ratio2.4 (1.2)(16.7)(3.6)(1.1)1.1 1.1 (3.3)(4.7)(0.6)
Total Incurred Loss and LAE Ratio58.8 52.3 41.7 79.8 70.5 28.1 34.8 27.2 58.1 39.9 
Insurance Expense Ratio30.6 31.4 28.6 29.8 28.4 29.2 32.6 33.7 30.1 31.0 
Combined Ratio89.4 %83.7 %70.3 %109.6 %98.9 %57.3 %67.4 %60.9 %88.2 %70.9 %
Underlying Combined Ratio 1
Current Year Non-catastrophe Losses and LAE Ratio39.9 %48.8 %48.9 %50.0 %29.6 %28.1 %37.1 %42.4 %46.9 %34.3 %
Insurance Expense Ratio30.6 31.4 28.6 29.8 28.4 29.2 32.6 33.7 30.1 31.0 
Underlying Combined Ratio70.5 %80.2 %77.5 %79.8 %58.0 %57.3 %69.7 %76.1 %77.0 %65.3 %
Non-GAAP Measure Reconciliation
Combined Ratio89.4 %83.7 %70.3 %109.6 %98.9 %57.3 %67.4 %60.9 %88.2 %70.9 %
Less:
Current Year Catastrophe Losses and LAE Ratio2.4 3.5 (4.8)16.7 50.0 16.9 4.5 1.1 4.4 17.9 
Prior Years Non-catastrophe Losses and LAE Ratio14.1 1.2 14.3 16.7 (8.0)(18.0)(7.9)(13.0)11.5 (11.7)
Prior Years Catastrophe Losses and LAE Ratio2.4 (1.2)(16.7)(3.6)(1.1)1.1 1.1 (3.3)(4.7)(0.6)
Underlying Combined Ratio70.5 %80.2 %77.5 %79.8 %58.0 %57.3 %69.7 %76.1 %77.0 %65.3 %
1 Underlying Combined Ratio is a non-GAAP measure, which is computed as the difference between three operating ratios: the combined ratio, the effect of catastrophes (excluding development of prior-year catastrophes) on the combined ratio and the effect of prior-year reserve development at the reporting date (including development on prior-year catastrophes) on the combined ratio.
23


Kemper Corporation
Life & Health Insurance Segment
Results of Operations and Selected Financial Information
(Dollars in Millions)
(Unaudited)
 Three Months EndedYear Ended
 Dec 31,
2021		Sep 30, 2021Jun 30, 2021Mar 31, 2021Dec 31, 2020Sep 30, 2020Jun 30, 2020Mar 31, 2020Dec 31,
2021		Dec 31,
2020
Results of Operations  
Earned Premiums$164.2 $164.1 $164.2 $161.0 $162.4 $160.6 $162.7 $163.0 $653.5 $648.7 
Net Investment Income50.8 48.4 52.4 51.1 52.8 50.7 44.3 51.0 202.7 198.8 
Change in Value of Alternative Energy Partnership Investments(3.7)(6.1)(2.0)(4.0)— — — — (15.8)— 
Other Income(1.6)0.1 0.1 0.1 — — 0.5 0.1 (1.3)0.6 
Total Revenues209.7 206.5 214.7 208.2 215.2 211.3 207.5 214.1 839.1 848.1 
Policyholders’ Benefits and Incurred Losses and LAE116.2 119.5 115.3 118.7 121.8 113.6 105.9 100.7 469.7 442.0 
Insurance Expenses89.5 92.9 86.2 90.3 83.8 82.5 81.7 86.9 358.9 334.9 
Operating Income (Loss)4.0 (5.9)13.2 (0.8)9.6 15.2 19.9 26.5 10.5 71.2 
Income Tax Benefit (Expense)1.1 8.7 (0.2)8.1 (0.2)(3.0)(3.8)(4.2)17.7 (11.2)
Segment Net Operating Income (Loss)$5.1 $2.8 $13.0 $7.3 $9.4 $12.2 $16.1 $22.3 $28.2 $60.0 
 

Dec 31,
2021		Sep 30, 2021Jun 30, 2021Mar 31, 2021Dec 31,
2020		Sep 30, 2020Jun 30, 2020Mar 31, 2020
Insurance Reserves:
Future Policyholder Benefits$3,454.1 $3,436.1 $3,466.4 $3,448.0 $3,440.5 $3,426.4 $3,407.0 $3,397.1 
Incurred Losses and LAE Reserves:
Life60.7 62.3 58.8 68.1 61.1 59.0 61.6 75.5 
Accident and Health26.1 25.7 26.4 25.5 25.9 26.1 29.1 28.2 
Property3.6 7.4 4.4 5.4 4.6 5.1 3.8 3.1 
Total Incurred Losses and LAE Reserves90.4 95.4 89.6 99.0 91.6 90.2 94.5 106.8 
Insurance Reserves$3,544.5 $3,531.5 $3,556.0 $3,547.0 $3,532.1 $3,516.6 $3,501.5 $3,503.9 

 

24


Kemper Corporation
Life & Health Insurance Segment
Life Insurance - Results of Operations and Selected Financial Information
(Dollars in Millions)
(Unaudited)
 Three Months EndedYear Ended
 Dec 31,
2021		Sep 30, 2021Jun 30, 2021Mar 31, 2021Dec 31, 2020Sep 30, 2020Jun 30, 2020Mar 31, 2020Dec 31,
2021		Dec 31,
2020
Results of Operations  
Earned Premiums$101.5 $101.5 $100.6 $98.1 $96.5 $96.3 $95.7 $97.2 $401.7 $385.7 
Net Investment Income49.3 47.0 50.9 49.6 52.3 47.5 44.8 48.7 196.8 193.3 
Change in Value of Alternative Energy Partnership Investments(3.5)(5.8)(1.9)(3.8)— — — — (15.0)— 
Other Income(1.6)— — — (0.1)— 0.1 — (1.6)— 
Total Revenues145.7 142.7 149.6 143.9 148.7 143.8 140.6 145.9 581.9 579.0 
Policyholders’ Benefits and Incurred Losses and LAE88.2 87.3 81.9 87.9 89.4 84.0 76.7 68.1 345.3 318.2 
Insurance Expenses60.5 61.5 55.6 58.0 52.9 54.7 50.9 60.3 235.6 218.8 
Operating Income (Loss)(3.0)(6.1)12.1 (2.0)6.4 5.1 13.0 17.5 1.0 42.0 
Income Tax Benefit (Expense)2.4 8.4 (0.1)8.0 0.3 (0.8)(2.4)(2.3)18.7 (5.2)
Total Product Line Operating Income (Loss)$(0.6)$2.3 $12.0 $6.0 $6.7 $4.3 $10.6 $15.2 $19.7 $36.8 


Kemper Corporation
Life & Health Insurance Segment
Accident & Health Insurance - Results of Operations and Selected Financial Information
(Dollars in Millions)
(Unaudited)
 Three Months EndedYear Ended
 Dec 31,
2021		Sep 30, 2021Jun 30, 2021Mar 31, 2021Dec 31, 2020Sep 30, 2020Jun 30, 2020Mar 31, 2020Dec 31,
2021		Dec 31,
2020
Results of Operations  
Earned Premiums$47.6 $47.0 $47.9 $47.4 $50.2 $48.9 $50.8 $49.4 $189.9 $199.3 
Net Investment Income0.9 0.9 0.8 1.0 0.3 3.1 (0.4)2.0 3.6 5.0 
Change in Value of Alternative Energy Partnership Investments(0.1)(0.1)— (0.1)— — — — (0.3)— 
Other Income— 0.1 0.1 0.1 0.1 — 0.4 0.1 0.3 0.6 
Total Revenues48.4 47.9 48.8 48.4 50.6 52.0 50.8 51.5 193.5 204.9 
Policyholders’ Benefits and Incurred Losses and LAE21.9 22.9 26.8 24.5 24.5 20.7 22.0 28.1 96.1 95.3 
Insurance Expenses21.5 23.5 22.2 24.4 25.1 22.1 24.6 20.1 91.6 91.9 
Operating Income (Loss)5.0 1.5 (0.2)(0.5)1.0 9.2 4.2 3.3 5.8 17.7 
Income Tax Benefit (Expense)(1.0)(0.2)0.1 0.2 — (2.0)(0.9)(0.7)(0.9)(3.6)
Total Product Line Net Operating Income (Loss)$4.0 $1.3 $(0.1)$(0.3)$1.0 $7.2 $3.3 $2.6 $4.9 $14.1 
25


Kemper Corporation
Life & Health Insurance Segment
Property Insurance - Results of Operations and Selected Financial Information
(Dollars in Millions)
(Unaudited)
 Three Months EndedYear Ended
 Dec 31,
2021		Sep 30, 2021Jun 30, 2021Mar 31, 2021Dec 31, 2020Sep 30, 2020Jun 30, 2020Mar 31, 2020Dec 31,
2021		Dec 31,
2020
Results of Operations   
Earned Premiums$15.1 $15.6 $15.7 $15.5 $15.7 $15.4 $16.2 $16.4 $61.9 $63.7 
Net Investment Income0.6 0.5 0.7 0.5 0.2 0.1 (0.1)0.3 2.3 0.5 
Change in Value of Alternative Energy Partnership Investments(0.1)(0.2)(0.1)(0.1)— — — — (0.5)— 
Total Revenues15.6 15.9 16.3 15.9 15.9 15.5 16.1 16.7 63.7 64.2 
Incurred Losses and LAE related to:
Current Year:
Non-catastrophe Losses and LAE3.2 3.6 4.2 3.2 2.5 5.2 3.5 4.0 14.2 15.2 
Catastrophe Losses and LAE2.9 5.7 2.5 1.9 5.3 3.1 3.2 0.8 13.0 12.4 
Prior Years:
Non-catastrophe Losses and LAE— 0.4 0.1 0.7 0.1 0.4 0.3 (0.4)1.2 0.4 
Catastrophe Losses and LAE— (0.4)(0.2)0.5 — 0.2 0.2 0.1 (0.1)0.5 
Total Incurred Losses and LAE6.1 9.3 6.6 6.3 7.9 8.9 7.2 4.5 28.3 28.5 
Insurance Expenses7.5 7.9 8.4 7.9 5.8 5.7 6.2 6.5 31.7 24.2 
Operating Income (Loss)2.0 (1.3)1.3 1.7 2.2 0.9 2.7 5.7 3.7 11.5 
Income Tax Benefit (Expense)(0.3)0.5 (0.2)(0.1)(0.5)(0.2)(0.5)(1.2)(0.1)(2.4)
Total Product Line Net Operating Income (Loss)$1.7 $(0.8)$1.1 $1.6 $1.7 $0.7 $2.2 $4.5 $3.6 $9.1 
Ratios Based On Earned Premiums
Current Year Non-catastrophe Losses and LAE Ratio21.2 %23.1 %26.8 %20.6 %15.9 %33.8 %21.5 %24.3 %23.0 %23.8 %
Current Year Catastrophe Losses and LAE Ratio19.2 36.5 15.9 12.3 33.8 20.1 19.8 4.9 21.0 19.5 
Prior Years Non-catastrophe Losses and LAE Ratio— 2.6 0.6 4.5 0.6 2.6 1.9 (2.4)1.9 0.6 
Prior Years Catastrophe Losses and LAE Ratio— (2.6)(1.3)3.2 — 1.3 1.2 0.6 (0.2)0.8 
Total Incurred Loss and LAE Ratio40.4 59.6 42.0 40.6 50.3 57.8 44.4 27.4 45.7 44.7 
Insurance Expense Ratio49.7 50.6 53.5 51.0 36.9 37.0 38.3 39.6 51.2 38.0 
Combined Ratio90.1 %110.2 %95.5 %91.6 %87.2 %94.8 %82.7 %67.0 %96.9 %82.7 %
Underlying Combined Ratio 1
Current Year Non-catastrophe Losses and LAE Ratio21.2 %23.1 %26.8 %20.6 %15.9 %33.8 %21.5 %24.3 %23.0 %23.8 %
Insurance Expense Ratio49.7 50.6 53.5 51.0 36.9 37.0 38.3 39.6 51.2 38.0 
Underlying Combined Ratio70.9 %73.7 %80.3 %71.6 %52.8 %70.8 %59.8 %63.9 %74.2 %61.8 %
Non-GAAP Measure Reconciliation
Combined Ratio90.1 %110.2 %95.5 %91.6 %87.2 %94.8 %82.7 %67.0 %96.9 %82.7 %
Less:
Current Year Catastrophe Losses and LAE Ratio19.2 36.5 15.9 12.3 33.8 20.1 19.8 4.9 21.0 19.5 
Prior Years Non-catastrophe Losses and LAE Ratio— 2.6 0.6 4.5 0.6 2.6 1.9 (2.4)1.9 0.6 
Prior Years Catastrophe Losses and LAE Ratio— (2.6)(1.3)3.2 — 1.3 1.2 0.6 (0.2)0.8 
Underlying Combined Ratio70.9 %73.7 %80.3 %71.6 %52.8 %70.8 %59.8 %63.9 %74.2 %61.8 %
1 Underlying Combined Ratio is a non-GAAP measure, which is computed as the difference between three operating ratios: the combined ratio, the effect of catastrophes (excluding development of prior-year catastrophes) on the combined ratio and the effect of prior-year reserve development at the reporting date (including development on prior-year catastrophes) on the combined ratio.
26


Kemper Corporation
Expenses
(Dollars in Millions)
(Unaudited)
 Three Months EndedYear Ended
 Dec 31,
2021		Sep 30, 2021Jun 30, 2021Mar 31, 2021Dec 31, 2020Sep 30, 2020Jun 30, 2020Mar 31, 2020Dec 31,
2021		Dec 31,
2020
Insurance Expenses: 
Commissions$192.3 $210.0 $220.1 $195.2 $183.3 $195.5 $178.2 $188.8 $817.6 $745.8 
General Expenses87.5 85.1 82.3 84.6 83.1 74.6 79.2 70.5 339.5 307.4 
Premium Taxes25.2 26.5 27.2 25.4 23.0 23.3 23.1 24.8 104.3 94.2 
Total Costs Incurred305.0 321.6 329.6 305.2 289.4 293.4 280.5 284.1 1,261.4 1,147.4 
Net Policy Acquisition Costs Deferred(1.0)(23.8)(41.1)(22.4)(11.1)(17.4)(9.3)(13.8)(88.3)(51.6)
Amortization of Valuation of Business Acquired ("VOBA")5.1 13.5 25.5 0.9 1.0 0.9 1.5 1.3 45.0 4.7 
Insurance Expenses309.1 311.3 314.0 283.7 279.3 276.9 272.7 271.6 1,218.1 1,100.5 
Interest and Other Expenses:
Interest Expense10.6 10.7 11.2 11.1 11.3 8.3 8.9 7.5 43.6 36.0 
Other Expenses:
Acquisition Related Transaction, Integration and Other Costs9.2 8.0 10.4 16.3 20.0 14.4 17.1 11.8 43.9 63.3 
Pension Settlement Expense— — — — 64.1 — — — — 64.1 
Other36.4 33.2 32.5 29.8 33.4 24.5 25.0 25.2 131.9 108.1 
Other Expenses45.6 41.2 42.9 46.1 117.5 38.9 42.1 37.0 175.8 235.5 
Interest and Other Expenses56.2 51.9 54.1 57.2 128.8 47.2 51.0 44.5 219.4 271.5 
Total Expenses$365.3 $363.2 $368.1 $340.9 $408.1 $324.1 $323.7 $316.1 $1,437.5 $1,372.0 

27


Kemper Corporation
Details of Investment Performance
(Dollars in Millions)
(Unaudited)
 Three Months EndedYear Ended
 Dec 31,
2021		Sep 30, 2021Jun 30, 2021Mar 31, 2021Dec 31, 2020Sep 30, 2020Jun 30, 2020Mar 31, 2020Dec 31,
2021		Dec 31,
2020
Net Investment Income  
Interest on Fixed Income Securities$70.6 $68.4 $69.7 $69.0 $71.8 $72.7 $74.3 $71.0 $277.7 $289.8 
Dividends on Equity Securities Excluding Alternative Investments6.1 2.9 4.8 2.1 4.7 2.8 3.6 4.3 15.9 15.4 
Alternative Investments:
Equity Method Limited Liability Investments5.8 12.0 16.4 22.5 7.6 8.2 (12.7)1.8 56.7 4.9 
Limited Liability Investments Included in Equity Securities17.6 9.5 15.3 4.5 14.8 2.4 1.1 3.8 46.9 22.1 
Total Alternative Investments23.4 21.5 31.7 27.0 22.4 10.6 (11.6)5.6 103.6 27.0 
Short-term Investments0.4 0.2 (0.8)1.2 1.3 2.3 0.3 1.6 1.0 5.5 
Loans to Policyholders5.4 5.4 5.4 5.5 5.5 5.5 5.5 5.6 21.7 22.1 
Real Estate2.2 2.3 2.4 2.4 2.5 2.3 2.3 2.5 9.3 9.6 
Other9.3 9.1 9.3 4.7 3.9 2.7 2.4 4.2 32.4 13.2 
Total Investment Income117.4 109.8 122.5 111.9 112.1 98.9 76.8 94.8 461.6 382.6 
Investment Expenses:
Real Estate2.9 2.6 2.1 2.1 2.3 1.2 2.7 2.6 9.7 8.8 
Other Investment Expenses6.1 5.3 6.5 6.7 7.1 5.6 6.3 6.6 24.6 25.6 
Total Investment Expenses9.0 7.9 8.6 8.8 9.4 6.8 9.0 9.2 34.3 34.4 
Net Investment Income$108.4 $101.9 $113.9 $103.1 $102.7 $92.1 $67.8 $85.6 $427.3 $348.2 
Net Realized Gains (Losses) on Sales of Investments
Fixed Maturities:
Gains on Sales$20.7 $10.3 $19.2 $13.2 $1.9 $11.9 $10.9 $15.9 $63.4 $40.6 
Losses on Sales(0.4)(0.4)(0.2)(1.1)(4.4)(1.9)(0.5)(1.1)(2.1)(7.9)
Equity Securities:
Gains on Sales2.3 0.1 — 1.7 4.4 0.1 0.1 1.3 4.1 5.9 
Losses on Sales(0.5)(0.2)— — (1.7)— — (0.2)(0.7)(1.9)
Equity Method Limited Liability Investments:
Gains on Sales— 0.4 — — — — — — 0.4 — 
Losses on Sales— — — — (0.3)(0.1)— — — (0.4)
Real Estate:
Gains on Sales— (0.1)0.2 — — — 1.2 0.6 0.1 1.8 
Losses on Sales(0.4)— — — — — — — (0.4)— 
Net Realized Gains (Losses) on Sales of Investments$21.7 $10.1 $19.2 $13.8 $(0.1)$10.0 $11.7 $16.5 $64.8 $38.1 
Net Impairment Losses Recognized in Earnings
Fixed Maturities$(3.1)$0.5 $(0.6)$(3.2)$1.3 $(1.0)$(7.0)$(10.0)$(6.4)$(16.7)
Equity Securities(0.1)(0.7)(2.6)(0.8)(0.8)— — (2.0)(4.2)(2.8)
Real Estate— (0.4)— — — — — — (0.4)— 
Net Impairment Losses Recognized in Earnings$(3.2)$(0.6)$(3.2)$(4.0)$0.5 $(1.0)$(7.0)$(12.0)$(11.0)$(19.5)
 
28


Kemper Corporation
Details of Invested Assets
(Dollars in Millions)
(Unaudited)
 Dec 31, 2021Dec 31, 2020Dec 31, 2019
 Carrying
Value
Percent
of Total1
Carrying
Value
Percent
of Total1
Carrying
Value
Percent
of Total1
Fixed Maturities Reported at Fair Value:
U.S. Government and Government Agencies and Authorities
$637.4 6.1 %$585.3 5.6 %$815.9 8.8 %
States and Political Subdivisions
1,890.1 18.2 1,589.5 15.2 1,515.8 16.4 
Foreign Governments
5.5 0.1 5.2 — 16.8 0.2 
Corporate Securities:
Bonds and Notes
4,386.9 42.2 4,425.4 42.5 3,859.7 41.7 
Redeemable Preferred Stocks
7.4 0.1 7.5 0.1 6.7 0.1 
Collateralized Loan Obligations752.1 7.2 767.7 7.4 618.2 6.7 
Other Mortgage- and Asset-backed
307.5 3.0 225.3 2.2 89.0 1.0 
Total Fixed Maturities Reported at Fair Value
7,986.9 76.9 7,605.9 73.0 6,922.1 74.7 
Equity Securities Reported at Fair Value:
Preferred Stocks
51.8 0.5 59.1 0.6 59.2 0.6 
Common Stocks
21.8 0.2 10.8 0.1 13.2 0.1 
Other Equity Interests:
Exchange Traded Funds
432.0 4.2 496.6 4.8 586.8 6.3 
Limited Liability Companies and Limited Partnerships
325.0 3.1 292.0 2.8 248.1 2.7 
Total Equity Securities Reported at Fair Value
830.6 8.0 858.5 8.2 907.3 9.8 
Equity Securities Reported at Modified Cost:
Preferred Stocks
7.1 0.1 8.1 0.1 9.1 0.1 
Common Stocks
17.4 0.2 16.3 0.2 12.3 0.1 
Limited Liability Companies and Limited Partnerships
7.8 0.1 15.7 0.2 20.5 0.2 
Total Equity Securities Reported at Modified Cost
32.3 0.4 40.1 0.5 41.9 0.4 
Convertible Securities at Fair Value
46.4 0.4 39.9 0.4 37.3 0.4 
Equity Method Limited Liability Investments
241.9 2.3 204.0 2.0 220.4 2.4 
Alternative Energy Partnership Investments39.6 0.4 21.3 0.2 — — 
Short-term Investments at Cost which Approximates Fair Value
284.1 2.7 875.4 8.4 470.9 5.1 
Other Investments:
Company Owned Life Insurance
448.1 4.3 327.4 3.1 217.0 2.3 
Loans to Policyholders at Unpaid Principal 286.2 2.8 297.9 2.9 305.6 3.3 
Real Estate at Depreciated Cost
94.0 0.9 98.7 0.9 111.4 1.2 
Mortgage Loans
96.8 0.9 54.6 0.5 27.5 0.3 
Other
0.5 — 0.4 — — — 
Total Other Investments
925.6 8.9 779.0 7.4 661.5 7.1 
Total Investments
$10,387.4 100.0 %$10,424.1 100.0 %$9,261.4 100.0 %
1 Sum of percentages for individual lines may not equal subtotals and grand total due to rounding.
29

Kemper Corporation
Details of Invested Assets (continued)
(Dollars in Millions)
(Unaudited)
 Dec 31, 2021Dec 31, 2020Dec 31, 2019
 Carrying
Value
Percent
of Total1
Carrying
Value
Percent
of Total1
Carrying
Value
Percent
of Total1
S&P Equivalent Rating for Fixed Maturities
      
AAA, AA, A
$5,351.6 67.0 %$4,759.9 62.6 %$4,387.1 63.4 %
BBB
2,215.1 27.7 2,355.6 31.0 2,044.1 29.5 
BB, B
331.0 4.2 353.1 4.6 319.2 4.6 
CCC or Lower
89.2 1.1 137.3 1.8 171.7 2.5 
Total Investments in Fixed Maturities
$7,986.9 100.0 %$7,605.9 100.0 %$6,922.1 100.0 %
Duration (in Years)
Total Investments in Fixed Maturities
8.5 7.8 7.1 
1 Sum of percentages for individual lines may not equal subtotals and grand total due to rounding.

30


Kemper Corporation
Investment Concentration
(Dollars in Millions)
(Unaudited)
 Dec 31, 2021Dec 31, 2020Dec 31, 2019
Fair Value of Non-governmental Fixed Maturities by Industry
AmountPercent
of Total
Investments		AmountPercent
of Total
Investments		AmountPercent
of Total
Investments
Finance, Insurance and Real Estate
$1,996.7 19.2 %$1,916.3 18.4 %$1,522.8 16.4 %
Manufacturing
1,571.0 15.1 1,633.5 15.7 1,356.4 14.6 
Transportation, Communication and Utilities
815.8 7.9 825.5 7.9 650.2 7.0 
Services
617.5 5.9 581.3 5.6 604.4 6.5 
Mining
254.3 2.4 285.7 2.7 154.5 1.7 
Retail Trade
171.4 1.7 172.6 1.7 183.3 2.0 
Construction13.1 0.1 — — — — 
Wholesale Trade
— — — — 72.9 0.8 
Agriculture, Forestry and Fishing
— — — — 12.4 0.1 
Other
14.1 0.1 11.0 0.1 16.6 0.2 
Total Fair Value of Non-governmental Fixed Maturities
$5,453.9 52.4 %$5,425.9 52.1 %$4,573.5 49.3 %
 
Dec 31, 2021
Ten Largest Investment Exposures 1
Fair
Value		Percent
of Total
Investments
Fixed Maturities:
States including their Political Subdivisions:
Texas$151.4 1.5 %
California107.6 1.0 
Georgia98.0 0.9 
New York95.1 0.9 
Florida74.8 0.7 
Louisiana74.7 0.7 
Colorado70.8 0.7 
Pennsylvania68.6 0.7 
Equity Securities at Fair Value—Other Equity Interests:
Vanguard Total World Stock ETF226.9 2.2 
iShares® Core MSCI Total International Stock ETF86.1 0.8 
Total$1,054.0 10.1 %
1Excluding Investments in U.S. Government and Government Agencies and Authorities at December 31, 2021.

 

31


Kemper Corporation
Municipal Bond Securities
(Dollars in Millions)
(Unaudited)
 Dec 31, 2021
State
General
Obligation		Political
Subdivision
General
Obligation		RevenueTotal Fair
Value
Percent
of Total
Muni Bond1
Percent
of Total
Investments1
 Texas $23.7 $121.2 $6.5 $151.4 8.0 %1.5 %
 California 13.5 86.9 7.2 107.6 5.7 1.0 
Georgia8.4 84.2 5.4 98.0 5.2 0.9 
New York9.0 79.7 6.4 95.1 5.0 0.9 
Florida— 74.8 — 74.8 4.0 0.7 
 Louisiana 5.8 31.8 37.1 74.7 4.0 0.7 
Colorado— 70.8 — 70.8 3.7 0.7 
Pennsylvania3.8 58.7 6.1 68.6 3.6 0.7 
Washington1.7 42.6 18.4 62.7 3.3 0.6 
Virginia16.9 38.9 6.8 62.6 3.3 0.6 
Oregon2.9 27.1 32.3 62.3 3.3 0.6 
Massachusetts1.4 52.4 6.4 60.2 3.2 0.6 
Maryland8.3 44.8 2.0 55.1 2.9 0.5 
Michigan— 40.6 14.3 54.9 2.9 0.5 
Illinois0.7 47.3 — 48.0 2.5 0.5 
Minnesota2.3 42.9 — 45.2 2.4 0.4 
Ohio— 38.6 6.3 44.9 2.4 0.4 
Tennessee11.7 27.7 3.5 42.9 2.3 0.4 
New Mexico— 38.6 — 38.6 2.0 0.4 
Utah— 37.5 — 37.5 2.0 0.4 
Indiana— 37.0 — 37.0 2.0 0.4 
Missouri1.3 32.9 — 34.2 1.8 0.3 
Connecticut— 17.0 16.0 33.0 1.7 0.3 
District of Columbia— 24.6 6.9 31.5 1.7 0.3 
Rhode Island— 27.7 1.8 29.5 1.6 0.3 
Arizona0.8 24.7 — 25.5 1.3 0.2 
Mississippi— 10.6 14.7 25.3 1.3 0.2 
Hawaii4.5 4.0 16.0 24.5 1.3 0.2 
Nebraska8.2 12.8 — 21.0 1.1 0.2 
New Hampshire0.5 19.7 — 20.2 1.1 0.2 
South Carolina— 19.9 — 19.9 1.1 0.2 
North Carolina2.0 17.7 — 19.7 1.0 0.2 
Arkansas— — 18.6 18.6 1.0 0.2 
Kentucky— 17.8 — 17.8 0.9 0.2 
Alaska— 17.6 — 17.6 0.9 0.2 
Iowa— 16.2 — 16.2 0.9 0.2 
Oklahoma— 15.6 — 15.6 0.8 0.2 
North Dakota— 13.7 — 13.7 0.7 0.1 
Delaware1.6 10.8 — 12.4 0.7 0.1 
All Other States9.0 88.9 3.1 101.0 5.3 1.0 
Total$138.0 $1,516.3 $235.8 $1,890.1 100.0 %18.2 %
1 Sum of percentages for individual lines may not equal total due to rounding.
32


Kemper Corporation
Investments in Limited Liability
Companies and Limited Partnerships
(Dollars in Millions)
(Unaudited)
 Unfunded
Commitment		Reported Value
Asset ClassDec 31,
2021		Dec 31,
2021		Dec 31, 2020
Reported as Equity Method Limited Liability Investments:
Mezzanine Debt$43.3 $120.0 $102.5 
Senior Debt46.7 27.5 28.6 
Distressed Debt100.1 21.7 14.5 
Secondary Transactions8.3 11.7 11.2 
Leveraged Buyout0.1 8.7 3.5 
Growth Equity— 0.7 0.7 
Real Estate— 29.9 29.9 
Hedge Funds— 8.7 — 
Other— 13.0 13.1 
Total Equity Method Limited Liability Investments198.5 241.9 204.0 
Alternative Energy Partnership Investments— 39.6 21.3 
Reported as Other Equity Interests at Fair Value:
Mezzanine Debt53.7 129.3 118.3 
Senior Debt15.1 29.9 33.9 
Distressed Debt20.0 44.9 31.8 
Secondary Transactions6.8 4.0 4.2 
Hedge Funds— 82.7 71.6 
Leveraged Buyout6.0 32.2 30.7 
Growth Equity0.7 2.0 — 
Other— — 1.5 
Total Reported as Other Equity Interests at Fair Value102.3 325.0 292.0 
Reported as Other Equity Interests at Modified Cost:
Other— 7.7 15.7 
Total Reported as Other Equity Interests at Modified Cost— 7.7 15.7 
Total Investments in Limited Liability Companies and Limited Partnerships$300.8 $614.2 $533.0 

33

Kemper Corporation
Definitions of Non-GAAP Financial Measures

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

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

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

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

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

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

Significant non-recurring items are excluded when (a) the nature of the charge or gain is such that it is reasonably unlikely to recur within two years, and (b) there has been no similar charge or gain within the prior two years. The most directly comparable GAAP financial measure is Net Income (Loss). There were no applicable significant non-recurring items that the Company excluded from the calculation of Adjusted Consolidated Net Operating Income for the twelve and three months ended December 31, 2021 or 2020.

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

Kemper Corporation
Definitions of Non-GAAP Financial Measures (continued)
A reconciliation of Net Income (Loss) to Adjusted Consolidated Net Operating Income is presented below:
 Three Months EndedYear Ended
Dollars in Millions (Unaudited)Dec 31,
2021		Sep 30, 2021Jun 30, 2021Mar 31, 2021Dec 31, 2020Sep 30, 2020Jun 30, 2020Mar 31, 2020Dec 31,
2021		Dec 31,
2020
Net Income (Loss)$(105.8)$(75.3)$(62.6)$123.2 $97.5 $122.3 $126.1 $64.0 $(120.5)$409.9 
Less Net Income (Loss) From:
Income (Loss) from Change in Fair Value of Equity and Convertible Securities17.5 (0.5)32.3 41.2 57.8 35.7 56.6 (93.1)90.5 57.0 
Net Realized Gains (Losses) on Sales of Investments17.2 7.9 15.2 10.9 (0.1)7.9 9.3 13.0 51.2 30.1 
Impairment Losses(2.5)(0.5)(2.5)(3.2)0.4 (0.8)(5.5)(9.5)(8.7)(15.4)
Acquisition Related Transaction, Integration and Other Costs(7.2)(6.4)(8.2)(12.9)(15.8)(11.4)(13.5)(9.3)(34.7)(50.0)
Debt Extinguishment, Pension and Other Charges— — — — (50.6)— — — — (50.6)
Adjusted Consolidated Net Operating Income (Loss)$(130.8)$(75.8)$(99.4)$87.2 $105.8 $90.9 $79.2 $162.9 $(218.8)$438.8 
Adjusted Consolidated Net Operating Income Per Unrestricted Share is a non-GAAP financial measure. It is computed by dividing Adjusted Consolidated Net Operating Income by the weighted average unrestricted shares outstanding. The most directly comparable GAAP financial measure is Net Income (Loss) Per Unrestricted Share ‐ basic. A reconciliation of Net Income (Loss) Per Unrestricted Share-basic to Adjusted Consolidated Net Operating Income (Loss) Per Unrestricted Share-basic is presented below:
 Three Months EndedYear Ended
(Unaudited)Dec 31,
2021		Sep 30, 2021Jun 30, 2021Mar 31, 2021Dec 31, 2020Sep 30, 2020Jun 30, 2020Mar 31, 2020Dec 31,
2021		Dec 31,
2020
Net Income (Loss) Per Unrestricted Share$(1.66)$(1.18)$(0.97)$1.88 $1.49 $1.87 $1.93 $0.96 $(1.87)$6.24 
Less Net Income (Loss) Per Unrestricted Share From:
Income (Loss) from Change in Fair Value of Equity and Convertible Securities0.27 (0.01)0.50 0.63 0.87 0.54 0.87 (1.40)1.41 0.87 
Net Realized Gains (Losses) on Sales of Investments0.27 0.13 0.24 0.17 — 0.12 0.14 0.19 0.80 0.46 
Impairment Losses(0.04)(0.01)(0.04)(0.05)0.01 (0.01)(0.08)(0.14)(0.14)(0.24)
Acquisition Related Transaction and Integration Costs(0.11)(0.10)(0.13)(0.20)(0.24)(0.17)(0.21)(0.14)(0.54)(0.76)
Debt Extinguishment, Pension and Other Charges— — — (0.77)— — — — (0.77)
Adjusted Consolidated Net Operating Income (Loss) Per Unrestricted Share$(2.05)$(1.19)$(1.54)$1.33 $1.62 $1.39 $1.21 $2.45 $(3.40)$6.68 

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

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

Kemper Corporation
As Adjusted for Acquisitions Non-GAAP Financial Measure

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

36

Kemper Corporation
As Adjusted for Acquisitions - Consolidated Financial Highlights
(Dollars in Millions)
(Unaudited)
 Three Months EndedYear Ended
 Dec 31, 2021Sep 30, 2021Jun 30, 2021Mar 31, 2021Dec 31, 2020Sep 30, 2020Jun 30, 2020Mar 31, 2020Dec 31,
2021		Dec 31,
2020
Earned Premiums
Kemper - GAAP As Reported
$1,359.1 $1,356.1 $1,337.7 $1,200.8 $1,214.0 $1,206.5 $1,085.3 $1,166.4 $5,253.7 $4,672.2 
AAC - Prior to Acquisition— — — 87.9 91.2 92.6 92.0 90.3 87.9 366.1 
As Adjusted for Acquisitions1
$1,359.1 $1,356.1 $1,337.7 $1,288.7 $1,305.2 $1,299.1 $1,177.3 $1,256.7 $5,341.6 $5,038.3 
Adjusted Consolidated Net Operating Income (Loss)
Kemper
$(130.8)$(75.8)$(99.4)$87.2 $105.8 $90.9 $79.2 $162.9 $(218.8)$438.8 
AAC - Prior to Acquisition— — — 12.3 9.5 12.4 13.3 10.9 12.3 46.1 
Less: Impact of Purchase Accounting
(4.5)(6.7)(10.1)(1.8)(3.2)(3.2)(4.4)(4.4)(23.1)(15.2)
As Adjusted for Acquisitions1
$(126.3)$(69.1)$(89.3)$101.3 $118.5 $106.5 $96.9 $178.2 $(183.4)$500.1 
1 As Adjusted for Acquisitions is a non-GAAP financial measure, which is computed by excluding the impact of purchase accounting. See page 36.

37

Kemper Corporation
Selected Financial Information
As Adjusted for Acquisitions - Specialty Property & Casualty Insurance Segment
(Dollars in Millions)
(Unaudited)
 Three Months EndedYear Ended
Dec 31, 2021Sep 30, 2021Jun 30, 2021Mar 31, 2021Dec 31, 2020Sep 30, 2020Jun 30, 2020Mar 31, 2020Dec 31,
2021		Dec 31,
2020
Earned Premiums
Kemper Specialty P&C - GAAP As Reported$1,032.3 $1,028.3 $1,010.3 $877.6 $882.4 $871.4 $759.0 $822.5 $3,948.5 $3,335.3 
AAC - Prior to Acquisition— — — 87.9 91.2 92.6 92.0 90.3 87.9 366.1 
As Adjusted for Acquisitions1
$1,032.3 $1,028.3 $1,010.3 $965.5 $973.6 $964.0 $851.0 $912.8 $4,036.4 $3,701.4 
Current Year Non-CAT Losses and LAE
Kemper Specialty P&C - GAAP As Reported$1,028.5 $924.4 $877.4 $650.0 $626.2 $589.0 $515.8 $619.8 $3,480.3 $2,350.8 
AAC - Prior to Acquisition— — — 62.0 62.4 62.6 62.2 62.6 62.0 249.8 
Less: Impact of Purchase Accounting
Amortization of Fair Value Adjustment to Unpaid Loss and LAE0.2 0.3 0.3 0.4 0.4 0.3 0.8 0.7 1.2 2.2 
As Adjusted for Acquisitions1
$1,028.3 $924.1 $877.1 $711.6 $688.2 $651.3 $577.2 $681.7 $3,541.1 $2,598.4 
Insurance Expenses
Kemper Specialty P&C - GAAP As Reported$204.4 $194.2 $205.6 $170.3 $179.1 $159.5 $161.2 $152.1 $774.5 $651.9 
AAC - Prior to Acquisition— — — 13.1 17.2 18.3 19.7 15.4 13.1 70.6 
Less: Impact of Purchase Accounting
Amortization of VOBA4.5 12.8 24.8 0.3 0.3 0.3 0.6 0.6 42.4 1.8 
Amortization of Estimated Legacy AAC Deferred Policy Acquisition Costs ("DPAC")(2.8)(8.4)(16.0)— — — — — (27.2)— 
Amortization of VOBA, Net of Legacy DPAC1.7 4.4 8.8 0.3 0.3 0.3 0.6 0.6 15.2 1.8 
Amortization of Finite Life Intangible Assets Acquired3.1 3.1 3.0 0.9 0.9 0.9 0.9 1.2 10.1 3.9 
Other1.1 1.1 1.1 1.1 2.9 3.0 3.0 3.4 4.4 12.3 
Total Purchase Accounting Adjustments5.9 8.6 12.9 2.3 4.1 4.2 4.5 5.2 29.7 18.0 
As Adjusted for Acquisitions1
$198.5 $185.6 $192.7 $181.1 $192.2 $173.6 $176.4 $162.3 $757.9 $704.5 
Underlying Combined Ratio1
Kemper Specialty P&C Segment - GAAP As Reported119.4 %108.9 %107.3 %93.5 %91.3 %85.9 %89.1 %93.9 %107.7 %89.9 %
As Adjusted for Acquisitions1
118.8 %107.9 %105.9 %92.5 %90.4 %85.6 %88.6 %92.5 %106.5 %89.2 %
1 As Adjusted for Acquisitions is a non-GAAP financial measure, which is computed by excluding the impact of purchase accounting. See page 36.

38

Kemper Corporation
Selected Financial Information
As Adjusted for Acquisitions - Specialty Personal Automobile Insurance
(Dollars in Millions)
(Unaudited)
 Three Months EndedYear Ended
Dec 31, 2021Sep 30, 2021Jun 30, 2021Mar 31, 2021Dec 31, 2020Sep 30, 2020Jun 30, 2020Mar 31, 2020Dec 31,
2021		Dec 31,
2020
Earned Premiums
Kemper Specialty Personal Automobile Insurance - GAAP As Reported$918.1 $920.6 $909.6 $785.4 $796.1 $792.2 $689.8 $753.2 $3,533.7 $3,031.3 
AAC - Prior to Acquisition— — — 87.9 91.2 92.6 92.0 90.3 87.9 366.1 
As Adjusted for Acquisitions1
$918.1 $920.6 $909.6 $873.3 $887.3 $884.8 $781.8 $843.5 $3,621.6 $3,397.4 
Current Year Non-CAT Losses and LAE
Kemper Specialty Personal Automobile Insurance - GAAP As Reported$938.5 $843.9 $805.1 $586.4 $569.1 $543.4 $472.4 $576.0 $3,173.9 $2,160.9 
AAC - Prior to Acquisition— — — 62.0 62.4 62.6 62.2 62.6 62.0 249.8 
Less: Impact of Purchase Accounting
Amortization of Fair Value Adjustment to Unpaid Loss and LAE0.2 0.3 0.2 0.3 0.3 0.2 0.6 0.6 1.0 1.7 
As Adjusted for Acquisitions1
$938.3 $843.6 $804.9 $648.1 $631.2 $605.8 $534.0 $638.0 $3,234.9 $2,409.0 
Insurance Expenses
Kemper Specialty Personal Automobile Insurance - GAAP As Reported$184.3 $176.0 $187.7 $155.3 $162.8 $145.6 $146.7 $139.2 $703.3 $594.3 
AAC - Prior to Acquisition— — — 13.1 17.2 18.3 19.7 15.4 13.1 70.6 
Less: Impact of Purchase Accounting
Amortization of VOBA4.4 12.8 24.7 0.2 0.2 0.1 0.4 0.4 42.1 1.1 
Amortization of Estimated Legacy AAC Deferred Policy Acquisition Costs ("DPAC")(2.8)(8.4)(16.0)— — — — — (27.2)— 
Amortization of VOBA, Net of Legacy DPAC1.6 4.4 8.7 0.2 0.2 0.1 0.4 0.4 14.9 1.1 
Amortization of Finite Life Intangible Assets Acquired3.0 2.9 2.8 0.7 0.7 0.7 0.7 1.1 9.4 3.2 
Other0.9 0.8 0.9 0.9 2.4 2.4 2.4 3.0 3.5 10.2 
Total Purchase Accounting Adjustments5.5 8.1 12.4 1.8 3.3 3.2 3.5 4.5 27.8 14.5 
As Adjusted for Acquisitions1
$178.8 $167.9 $175.3 $166.6 $176.7 $160.7 $162.9 $150.1 $688.6 $650.4 
Underlying Combined Ratio1
Kemper Specialty Personal Automobile Insurance - GAAP As Reported122.3 %110.8 %109.1 %94.5 %91.8 %86.9 %89.8 %95.0 %109.7 %90.9 %
As Adjusted for Acquisitions1
121.7 %109.9 %107.8 %93.3 %91.1 %86.6 %89.1 %93.4 %108.3 %90.1 %
1 As Adjusted for Acquisitions is a non-GAAP financial measure, which is computed by excluding the impact of purchase accounting. See page 36.

39
Earnings Call Presentation – 4Q 2021 Fourth Quarter 2021 Earnings January 31, 2022

 
Earnings Call Presentation – 4Q 2021 Cautionary Statements Regarding Forward-Looking Information This presentation may contain or incorporate by reference information that includes or is based on forward-looking statements within the meaning of the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995. We caution investors that these forward-looking statements are not guarantees of future performance, and actual results may differ materially. Such statements involve known and unknown risks, uncertainties, and other factors, including but not limited to: • changes in the frequency and severity of insurance claims; • claim development and the process of estimating claim reserves; • the impacts of inflation; • product demand and pricing; • effects of governmental and regulatory actions; • litigation outcomes; • investment risks; • cybersecurity risks; • impact of catastrophes; and • other risks and uncertainties detailed in Kemper’s Annual Report on Form 10-K and subsequent filings with the Securities and Exchange Commission (“SEC”). The COVID-19 outbreak and subsequent global pandemic (“Pandemic”) is an extraordinary catastrophe that creates unique uncertainties and risks. Kemper cannot provide any assurances as to the impacts of the Pandemic and related economic conditions on Kemper’s operating and financial results. 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. Non-GAAP Financial Measures This presentation contains non-GAAP financial measures that the company believes are meaningful to investors. Non-GAAP financial measures have been reconciled to the most comparable GAAP financial measure. Preliminary Matters 2

 
Earnings Call Presentation – 4Q 2021 Deliver low double-digit ROE2 over time Create Long-Term Shareholder Value Leverage competitive advantages to grow returns and BVPS1 over time ¹ Book value per share 2 Return on equity Sustainable competitive advantages and build core capabilities Grow returns and book value per share over time Diversified sources of earnings; Strong capital/liquidity positions; Disciplined approach to capital management Consumer-related businesses with opportunities that: • Target specialty markets • Have limited, weak or unfocused competition • Require unique expertise (underwriting, claim, distribution, analytics and other) Strategic focus: 3

 
Earnings Call Presentation – 4Q 2021 Fourth Quarter 2021 Highlights ¹ Non-GAAP financial measure; please see reconciliation in appendix on pages 20-29 2 Return on average shareholders’ equity (5-point average) 3 As adjusted for acquisition; see reconciliation on Pages 26-29 4 Pandemic headwinds continued to impact margins Taking actions to return to target profitability • Inflation trends related to supply chain issues and labor shortages continued to drive loss costs, exceeding the benefits of rate and underwriting actions • Specialty P&C rate actions: Filed for 8% rate increase on ~57% of book, includes California • Preferred P&C rate actions: Filed for 12% rate increase on ~23% of book, ongoing repositioning of book to improve profitability 4th Quarter Overview Environmental pressures challenged 4Q21 financial results • Net loss of $106 million ($1.66) per share, as reported, or $101 million ($1.59) per share, as adjusted3 • Adjusted consolidated net operating loss1 of $131 million ($2.05) per share, as reported, or $126 million ($1.98) per share, as adjusted3 • (3)% ROAE2, (5)% ROAE2 excluding net unrealized gains on fixed maturities and goodwill1 • Generated $351 million of operating cash flow for the year • Dividends paid of $0.31 Shareholder Value Creation Strong capital and liquidity enables us to navigate environmental challenges • Holding company remains a source of strength for subsidiaries, with more than $900 million of liquidity • Debt-to-capital ratio of 21.9% remains within target range • Upsized and renewed multi-year occurrence and annual aggregate programs Capital Management and Financial Strength

 
Earnings Call Presentation – 4Q 2021 Focus is on restoring profitability and positioning businesses for growth in 2023 Fourth Quarter Financial Highlights Environmental headwinds impacted profitability and TBVPS growth As Reported As Adjusted1 Quarter Ended Quarter Ended (Dollars in millions, except per share amounts) Dec 31, 2021 Dec 31, 2020 Dec 31, 2021 Dec 31, 2020 Net Income (Loss) $(106) $98 $(101) $118 Net Income (Loss) – Per Diluted Share $(1.66) $1.46 $(1.59) $1.77 Adjusted Consolidated Net Operating Income (Loss)1 $(131) $106 $(126) $119 Adj. Consolidated Net Op. Income (Loss) – Per Diluted Share1 $(2.05) $1.59 $(1.98) $1.78 Catastrophe Losses $13 $6 AAC goodwill diluted TBVPS by $3.11 Tangible Book Value Per Common Share excluding unrealized gains1 $34.44 $41.65 Return on Avg. Tangible Common Equity1 (4.9)% 16.3% Dividend Paid to Shareholders Per Share $0.31 $0.30 Specialty PIF growth 17.9% 2.5% 4.5% 2.2% 5 ¹ As adjusted for acquisition; see reconciliation on Pages 26-29

 
Earnings Call Presentation – 4Q 2021 Restoration activities will persist through 2022 Review of Net Operating Income ¹ Non-GAAP financial measure; see reconciliation in appendix pages 20-29 4Q21 financial results pressured by environmental challenges 6 Three Months Ended, As Reported Dec. 31, Sep. 30, Jun. 30, Mar. 31, Dec. 31, Variance Dollars per Unrestricted Share - Diluted 2021 2021 2021 2021 2020 QoQ Net Income (Loss) (1.66)$ (1.18)$ (0.97)$ 1.85$ 1.46$ (3.12) (Income) Loss from Change in FV of Equity & Convertible Securities (0.27) 0.01 (0.50) (0.62) (0.86) 0.59 Investment Related (Gains)/Losses (0.27) (0.13) (0.24) (0.16) - (0.27) Net Impairment Losses 0.04 0.01 0.04 0.05 (0.01) 0.05 Acquisition Related Transaction, Integration & Other Costs 0.11 0.10 0.13 0.19 0.24 (0.13) Debt Extinguishment, Pension and Other Charges - - - - 0.76 (0.76) Adj. Consolidated Net Operating Income (Loss)1 (2.05) (1.19) (1.54) 1.31 1.59 (3.64) Sources of Volatility: Income (Loss) After-Tax From: Catastrophes (0.16) (0.40) (0.43) (0.33) (0.07) (0.09) - Solar Investment (0.05) 0.11 0.01 0.20 0.05 (0.10) Prior-year Reserve Development 0.01 (0.31) (1.01) - (0.10) 0.11 - Alternative Investment Income 0.29 0.27 0.38 0.32 0.27 0.02 - Impact of Purchase Accounting (0.07) (0.10) (0.15) (0.03) (0.05) (0.02) Total from Sources of Volatility 0.02$ (0.43)$ (1.20)$ 0.16$ 0.10$ (0.08)$

 
Earnings Call Presentation – 4Q 2021 Environmental Factors Pressuring Capital Generation & Returns Total Adjusted Return of BVPS Ex. Unrealized Gains on Fixed Maturities and Goodwill Return on Shareholders’ Equity 2016 2017 2018 2019 2020 2021 Book Value Per Share ex. Goodwill and Unrealized¹ Cumulative Dividends Per Share Paid $31.21 $31.10$29.66 $40.27 $46.76 $40.79 1.1% 8.0% 11.4% 24.7% 16.3% (4.9)%0.9% 6.6% 8.3% 16.3% 11.3% (3.2)% 2016 2017 2018 2019 2020 2021 ROATCE ROE ex. Unrealized Gains on Fixed Maturities Growth 38% • AAC goodwill diluted TBVPS by $3.11 • Infinity transaction diluted TBVPS by $3.84 • ROATCE measure captures investors’ compensation on tangible equity ¹ Non-GAAP financial measure; please see reconciliation in appendix on pages 20-29 2 Return on average tangible common equity (rolling 5 point avg.); please see reconciliation in appendix on pages 20-29 3 Return on average shareholder’s equity excluding unrealized gains on fixed maturities (rolling 5 point avg.); please see reconciliation in appendix on pages 20-29 2 3 7 Infinity Acq Closed 7/18 AAC Acq Closed 4/21

 
Earnings Call Presentation – 4Q 2021 27.6% 21.9% 23.0% 16.4% 20.4% 21.9% 2016 2017 2018 2019 2020 2021 Debt-to-Capital <30% Strong Balance Sheet with Well-Funded Insurance Entities Significant capital and liquidity positions Debt Cash Flow from Operating Activities $2.7B $4.8B$4.0B$2.7B Total Capitalization Parent Company Liquidity Risk-Based Capital Ratios¹ $299 $197 $101 $207 $733 $234 $385 $385 $540 $660 $700 $704 2016 2017 2018 2019 2020 2021 Borrowings Available Under Credit Agreement & from Subs HoldCo Cash & Investments (M M ) 415 430 410 355 340 345335 290 285 365 330 225 2016 2017 2018 2019 2020 2021 Life & Health P&C (ex. AU & AACC) (% ) $684 $867 $641$582 (M M ) $241 $241 $539 $534 $448 $351 2016 2017 2018 2019 2020 2021 $1,433 $5.7B Capital and liquidity positions enable us to navigate environment and position business for success $5.1B 8 $938 ¹ The estimated Risk-Based Capital Ratios are calculated at the Company Action Level

 
Earnings Call Presentation – 4Q 2021 2022 Reinsurance Program Highlights1 Renewed programs and upsized our catastrophe excess of loss reinsurance program Program is designed to mitigate risk and reduce cost of capital ▪ Catastrophe Excess of Loss (XOL) Reinsurance Program • Increased limits by $75M for 2022 commensurate with increased size of business • Program covers losses at 95% of $300M in excess of $50M • Limits align with our risk appetite and minimizes our cost of capital ▪ Aggregate Catastrophe Program • Increased retention by $5 million • Coverage: ‒ $50 million in excess of $65 million ‒ $500K deductible per storm ‒ Perils: All perils, excluding named storms (e.g., hurricanes) and earthquakes ‒ Covered Line: Property, Fire and Dwelling ▪ Minimal change in total reinsurance program costs vs 2021 9 $50 $50 $225 $300 2021 Program 2022 Program CAT XOL Program Retention Limit 5 % R eten tio n 5 % R eten tio n Coverage $75M $60 $65 $50 $50 2021 Program 2022 Program CAT Aggregate Retention Limit Retention $5M ¹Further reinsurance program details on slide 19.

 
Earnings Call Presentation – 4Q 2021 4.5% 4.5% 5.0% 4.4% 4.6% 4Q20 1Q21 2Q21 3Q21 4Q21 53% 18% 6% 5% 6% 3% 9% Other States/ Munis 67% 28% 4% 1% Diversified & Highly-Rated Portfolio Fixed Maturity Ratings $8.0 Billion A or Higher ≤ CCC B / BB BBB Diversified Portfolio with Consistent Returns Note: Charts may not balance due to rounding ¹ Equity securities excludes $333 million of Other Equity Interests of LP/LLC’s that have been reclassified into Alternative Investments • Portfolio continues to provide stable net investment income - 4.6% PTE annualized book yield • Investment portfolio is designed for growth of both income and total return • Steady investment income supports long- term business objectives $81 $76 $82 $80 $85 $22 $27 $32 $22 $23 4Q20 1Q21 2Q21 3Q21 4Q21 Core Portfolio Alternative Inv. Portfolio Net Investment Income¹ (M M ) $103 $108$102$114$103 Overview Corporates Short-term Alternatives¹ Equity¹ U.S. Gov’t Portfolio Composition Pre-Tax Equiv. Annualized Book Yield $10.4 Billion 10

 
Earnings Call Presentation – 4Q 2021 (10.0)% (8.0)% (6.0)% (4.0)% (2.0)% 0.0 % 2.0 % 4.0 % 6.0 % 8.0 % 10.0 % Significant, rapid drop in loss trend Implementing Pricing and Underwriting Actions to Combat Trend Actions take time to earn into financials; illustrative earned rate vs. trend comparison 11 Time (Not to Scale) Ea rn e d R at e a n d L o ss T re n d ( N o t to S ca le ) Target margins return when combination of earned rate and other underwriting actions exceed loss trend Δ Earned Rate Loss Trend (frequency & severity) Pre-Pandemic Lockdowns Re-Opening / Future Rate filed Rate to zero Predictable loss trend offset by rate Significant, rapid rise in loss trend Prior to 2020 2Q20 – 1Q21 Current+ Rate earning-in ILLUSTRATIVE LOSS TREND vs. RATE CYCLE Rate meeting / exceeding loss trend early 2022

 
Earnings Call Presentation – 4Q 2021 90.4 92.5 105.9 107.9 118.8 89.2 92.5 99.3 102.3 106.5 4Q20 1Q21 2Q21 3Q21 4Q21 Underlying Combined Ratio2 QTD YTD Specialty Property & Casualty Segment1 Environmental challenges continued to pressure near-term profitability ¹ As adjusted for acquisition; see reconciliation on Pages 26-29; 2 Non-GAAP financial measure; see reconciliation in appendix on pages 20-29; excludes impact of purchase accounting 3 Represents the percent of total book impacted in the quarter and the weighted average rate of actual filings; 4 Period rate goes into effect (% ) Key Highlights Positioned to navigate challenging environment and return to long-term profitability targets Rate Actions3 Overall Impact Filed Effective4 Written Earned % Prem Impacted Wtd Ave Rate % Prem Impacted Wtd Ave Rate Cumulative Impact on Specialty Personal Auto Book 3Q 2021 34% 3% 34% 3% 1.8% 0.1% 4Q 2021 57% 8% 37% 9% 3.6% 0.3% 1Q 2022 ~60% ~7% ~21% ~7% ~5.8% ~1.1% 12 • Inflation trends related to supply chain issues and labor shortages led to an increase in the underlying combined ratio2 • Corrective actions in progress • Unfavorable intra-year development of roughly 2pts related to increasing inflation in BI & metal losses • Earned rate will increase throughout 2022 and 2023 Key Metrics ($ in millions) 4Q’21 4Q’20 Change vs 4Q’20 Earned Premiums2 $1,032 $974 6.0% Underlying Loss & LAE Ratio2 99.6% 70.7% 28.9pts Underlying Expense Ratio2 19.2% 19.7% (0.5pts) Policies In-Force (000) 2,201 2,106 4.5% Specialty PPA (Rate Change Activity Since 2Q21)

 
Earnings Call Presentation – 4Q 2021 Preferred Property & Casualty Insurance Segment Primary focus on restoring profitability Key Highlights 103.1 97.6 111.3 114.6 127.1 77.6 78.8 89.1 81.5 73.7 4Q20 1Q21 2Q21 3Q21 4Q21 Underlying Combined Ratio¹ Auto Home & Other Profitability impacted by severity challenges ¹ Non-GAAP financial measure; please see reconciliation in appendix on pages 20-29 2 Represents the percent of total book impacted in the quarter and the weighted average rate of actual filings; 3 Period rate goes into effect • Underlying combined ratio1 in segment increased to 107% for the quarter • Increase driven by elevated severity trends • Unfavorable intra-year development of roughly 2pts related to increasing inflation in BI & metal losses (% ) 13 Key Metrics ($ in millions) 4Q’21 4Q’20 Change vs 4Q’20 Auto Earned Premiums $101 $107 (5.6)% Policies In-Force (000) 205 219 (6.4)% Home & Other Earned Premiums $61 $62 (0.1)% Policies In-Force (000) 212 213 (0.5)% Rate Actions2 Overall Impact Filed Effective3 Written Earned % Prem Impacted Wtd Ave Rate % Prem Impacted Wtd Ave Rate Cumulative Impact on Preferred Personal Auto Book 3Q 2021 39% 4% 31% 6% 1.6% 0.1% 4Q 2021 23% 12% 21% 6% 2.9% 0.1% 1Q 2022 ~17% ~10% ~17% ~13% ~5.2% ~0.5% Preferred Personal Auto (Rate Change Activity Since 2Q21)

 
Earnings Call Presentation – 4Q 2021 Life & Health Insurance Segment New Covid variants continue to impact Life results Note: Chart may not balance due to rounding ¹ Excludes other income and solar credit impairment (M M ) • Life Earned Premium increased $5.0 million (5%) in Q4’21 to $101.5 million, due to cumulative persistency improvement • Persistency remained elevated over pre-Pandemic levels (2017-2019) • Annualized Life new business sales remain above historical levels • Life claim activity above pre-Pandemic levels and remains in-line with national mortality trends Key Highlights $162 $161 $164 $164 $164 $53 $51 $52 $48 $51 4Q20 1Q21 2Q21 3Q21 4Q21 Revenues1 Earned Premiums Net Investment Income $215$217$212$215 $213 Improved Life persistency and continued growth in new business sales position business for long-term profitability 14 Key Metrics ($ in millions except per policy amounts) 4Q’21 4Q’20 Change vs 4Q’20 L&H Net Operating Income $5 $9 (44.4)% Life Face Value of In-Force $20,430 $19,859 2.9% Avg. Face per Policy $6,192 $5,909 4.8% Avg. Premium per Policy Issued $541 $492 10.0%

 
Earnings Call Presentation – 4Q 2021 Appendix 15

 
Earnings Call Presentation – 4Q 2021 ….to create value for all our stakeholders A Leading Specialized Insurer Taking advantage of a diversified portfolio of niche businesses…. Founded in 1990 and headquartered in Chicago, with subsidiaries writing policies since 1911 ~6.5M Policies ~35,400 Agents/Brokers ~10,300 Employees Preferred personal lines insurance providing preferred automobile, homeowners and other personal insurance products ~$15B Assets Specialty P&C insurance providing personal and commercial automobile insurance products Life and health insurance providing life, supplemental benefits, and other property insurance products 16

 
Earnings Call Presentation – 4Q 2021 Capital Deployment Priorities Dedicated to being good stewards of capital Management and capital deployment priorities focused on maximizing shareholder value 1. Investment in the business • Fund profitable organic growth at appropriate risk-adjusted returns • Strategic investments and acquisitions that enhance the business and meet or exceed our ROE targets over time 2. Return capital to shareholders • Repurchase shares opportunistically • Maintain competitive dividends 17

 
Earnings Call Presentation – 4Q 2021 Solar Energy Investment: In Line with Environmental Impact Goals $100 million commitment to solar energy partnership investment generating attractive returns 18 • In conjunction with Sunrun, invested in a diversified group of residential solar energy projects • Opportunity to provide renewable energy solutions for homeowners that benefits the environment • Expect to earn an attractive return that will primarily be recognized as tax credits / deductions as well as operating cash flows - Due to tax profile of transaction, this investment needs to be evaluated on after-tax basis • Majority of financial benefits will be recognized over the next two years - Will reduce our Effective Tax Rate over next two years - Largest impact is expected to have taken place in 1Q’21 Reporting on Income Statement Line Items Continue to optimize our capital management through investments with attractive returns and cash flows Key Metrics ($ in millions, except per share data) 4Q’20 1Q’21 2Q’21 3Q’21 4Q’21 Cumulative Revenue Reduction $ -- $15.4 $7.7 $23.8 $14.3 $61.2 Per Share $ -- $(0.23) $(0.12) $(0.37) $(0.22) $(0.94) Tax Credit / Deductions $3.2 $28.6 $8.6 $30.6 $11.2 $82.2 Per Share $0.05 $0.43 $0.13 $0.48 $0.18 $1.27 Net Benefit (Loss) $3.2 $13.2 $0.9 $6.8 $(3.1) $21.0 Per Share $0.05 $0.20 $0.01 $0.11 $(0.05) $0.32

 
Earnings Call Presentation – 4Q 2021 2022 Reinsurance Program Renewed programs and upsized our catastrophe reinsurance program • Policy placed at 1/1/22 upsized relative to prior four years - New limit aligned with risk-appetite to cover 1-in-200 occurrence - Minimizes rating agency cost of capital • Total coverage: 95% of $300 million in excess of $50 million Catastrophe Reinsurance Program (Multi-Year) • Increased retention vs. 2021 program – Intended to reduce volatility from high- frequency, low severity events • Coverage – $50 million in excess of $65 million – $500K deductible per storm – Perils: All perils, excluding named storms (e.g., hurricanes) and earthquakes – Covered Line: Property, Fire and Dwelling Aggregate Catastrophe Program 2022 Aggregate Catastrophe Reinsurance Program 19

 
Earnings Call Presentation – 4Q 2021 Book Value Per Share Excluding Net Unrealized Gains on Fixed Maturities is a ratio that uses a non-GAAP financial measure. It is calculated by dividing shareholders’ equity after excluding the after-tax impact of net unrealized gains on fixed income securities by total Common Shares Issued and Outstanding. Book value per share is the most directly comparable GAAP financial measure. The Company uses the trend in book value per share, excluding the after-tax impact of net unrealized gains on fixed income securities in conjunction with book value per share to identify and analyze the change in net worth attributable to management efforts between periods. The Company believes the non-GAAP financial measure is useful to investors because it eliminates the effect of items that can fluctuate significantly from period to period and are generally driven by economic developments, primarily capital market conditions, the magnitude and timing of which are generally not influenced by management. The Company believes it enhances understanding and comparability of performance by highlighting underlying business activity and profitability drivers. Book Value Per Share Excluding Net Unrealized Gains on Fixed Maturities and Goodwill is a calculation that uses a non-GAAP financial measure. It is calculated by dividing shareholders’ equity after excluding the after-tax impact of net unrealized gains on fixed income securities and goodwill by total Common Shares Issued and Outstanding. Book value per share is the most directly comparable GAAP financial measure. The Company uses the trends in book value per share excluding the after-tax impact of net unrealized gains on fixed income securities and goodwill in conjunction with book value per share to identify and analyze the change in net worth excluding goodwill attributable to management efforts between periods. The Company believes the non-GAAP financial measure is useful to investors because it eliminates the effect of items that can fluctuate significantly from period to period and are generally driven by economic developments, primarily capital market conditions, the magnitude and timing of which are not influenced by management. The Company believes it enhances understanding and comparability of performance by highlighting underlying business activity and profitability drivers. Non-GAAP Financial Measures 20 2021 2020 2019 2018 2017 2016 Book Value Per Share 62.93$ 69.74$ 59.59$ 47.10$ 41.11$ 38.52$ Less: Net Unrealized Gains on Fixed Maturities Per Share (7.89) (11.07) (6.51) (1.70) (5.54) (3.52) Book Value Per Share Excluding Net Unrealized Gains on Fixed Maturities 55.04$ 58.67$ 53.08$ 45.40$ 35.57$ 35.00$ Less: Goodwill (20.60) (17.02) (16.72) (17.18) (6.28) (6.30) Book Value Per Share Excluding Net Unrealized Gains on Fixed Maturities and Goodwill 34.44$ 41.65$ 36.36$ 28.22$ 29.29$ 28.70$ For the Periods Ended

 
Earnings Call Presentation – 4Q 2021 Return on Equity Non-GAAP Financial Measures 21 2021 2020 2019 2018 2017 2016 Rolling 12 Month Return on Average Shareholders' Equity (5 Point Avg) (2.8)% 9.8% 14.8% 7.7% 5.9% 0.8% Less: Net Unrealized Gains on Fixed Maturities (0.4)% 1.5% 1.5% 0.6% 0.7% 0.1% Rolling 12 Month Return on Average Shareholders' Equity Excluding Net Unrealized Gains on Fixed Maturities (5 Point Avg) (3.2)% 11.3% 16.3% 8.3% 6.6% 0.9% Less: Goodwill (1.7)% 5.0% 8.4% 3.1% 1.4% 0.2% Rolling 12 Month Return on Average Shareholders' Equity Excluding Net Unrealized Gains on Fixed Maturities and Goodwill (5 Point Avg) (4.9)% 16.3% 24.7% 11.4% 8.0% 1.1% For the Periods Ended

 
Earnings Call Presentation – 4Q 2021 Kemper believes that Adjusted Consolidated Net Operating Income (Loss) provides investors with a valuable measure of its ongoing performance because it reveals underlying operational performance trends that otherwise might be less apparent if the items were not excluded. Income (Loss) from Change in Fair Value of Equity and Convertible Securities, Net Realized Gains on Sales of Investments and Impairment Losses related to investments included in the Company’s results may vary significantly between periods and are generally driven by business decisions and external economic developments such as capital market conditions that impact the values of the Company’s investments, the timing of which is unrelated to the insurance underwriting process. Acquisition Related Transaction and Integration Costs may vary significantly between periods and are generally driven by the timing of acquisitions and business decisions which are unrelated to the insurance underwriting process. Debt Extinguishment, Pension and Other Charges relate to (i) loss from early extinguishment of debt, which is driven by the Company’s financing and refinancing decisions and capital needs, as well as external economic developments such as debt market conditions, the timing of which is unrelated to the insurance underwriting process; (ii) settlement of pension plan obligations which are business decisions are made by the Company, the timing of which is unrelated to the underwriting process; and (iii) other charges that are non-standard, not part of the ordinary course of business, and unrelated to the insurance underwriting process. Significant non-recurring items are excluded because, by their nature, they are not indicative of the Company’s business or economic trends. Non-GAAP Financial Measures 22

 
Earnings Call Presentation – 4Q 2021 Diluted Adjusted Consolidated Net Operating Income (Loss) Per Unrestricted Share is a non-GAAP financial measure computed by dividing Adjusted Consolidated Net Operating Income (Loss) attributed to unrestricted shares by the weighted-average unrestricted shares and equivalent shares outstanding. The most directly comparable GAAP financial measure is Diluted Net Income (Loss) Per Unrestricted Share. Kemper believes that Diluted Adjusted Consolidated Net Operating Income (Loss) Per Unrestricted Share provides investors with a valuable measure of its ongoing performance because it reveals underlying operational performance trends that otherwise might be less apparent if the items were not excluded. Income from change in fair value of equity and convertible securities, net realized gains on sales of investments, impairment losses related to investments, acquisition related transaction, integration and other costs and loss from early extinguishment of debt included in Kemper’s results may vary significantly between periods and are generally driven by business decisions and external economic developments such as capital market conditions that impact the values of the company’s investments, the timing of which is unrelated to the insurance underwriting process. Non-GAAP Financial Measures 23 Per Unrestricted Share 4Q21 3Q21 2Q21 1Q21 4Q20 Net Income (Loss) - Diluted (1.66)$ (1.18)$ (0.97)$ 1.85$ 1.46$ Net (Income) Loss From: Change in Fair Value of Equity & Convertible Securities (0.27) 0.01 (0.50) (0.62) (0.86) Net Realized Gains on Sales of Investments (0.27) (0.13) (0.24) (0.16) - Impairment Losses 0.04 0.01 0.04 0.05 (0.01) Acquisition Related Transaction, Integration and Other Costs 0.11 0.10 0.13 0.19 0.24 Debt Extinguishment, pension and other charges - - - - 0.76 Adj. Consolidated Net Operating Income (Loss) - Diluted (2.05)$ (1.19)$ (1.54)$ 1.31$ 1.59$ For the Three Months Ended

 
Earnings Call Presentation – 4Q 2021 Underlying Combined Ratio is a non-GAAP financial measure. It is computed by adding the Current Year Non-catastrophe Losses and LAE Ratio with the Insurance Expense Ratio. The most directly comparable GAAP financial measure is the Combined Ratio, which is computed by adding total incurred losses and LAE, including the impact of catastrophe losses and loss and LAE reserve development from prior years, with the Insurance Expense Ratio. The Company believes the underlying combined ratio is useful to investors and is used by management to reveal the trends in the Company’s property and casualty insurance businesses that may be obscured by catastrophe losses and prior-year reserve development. These catastrophe losses cause loss trends to vary significantly between periods as a result of their incidence of occurrence and magnitude, and can have a significant impact on the combined ratio. Prior-year reserve developments are caused by unexpected loss development on historical reserves. Because reserve development relates to the re-estimation of losses from earlier periods, it has no bearing on the performance of our insurance products in the current period. The Company believes it is useful for investors to evaluate these components separately and in the aggregate when reviewing the Company’s underwriting performance. The underlying combined ratio should not be considered a substitute for the combined ratio and does not reflect the overall underwriting profitability of our business. Non-GAAP Financial Measures 24

 
Earnings Call Presentation – 4Q 2021 Underlying Combined Ratio – Continued Non-GAAP Financial Measures 25 4Q21 3Q21 2Q21 1Q21 4Q20 Specialty P&C Insurance Combined Ratio as Reported 118.9% 111.6% 116.1% 93.5% 91.7% Current Year Catastrophe Loss and LAE Ratio (0.2)% (0.3)% (0.8)% (0.2)% (0.6)% Prior Years Non-Catastrophe Losses and LAE 0.7% (2.4)% (8.0)% 0.2% 0.2% Prior Years Catastrophe Losses and LAE Ratio 0.0% 0.0% 0.0% 0.0% 0.0% Underlying Combined Ratio 119.4% 108.9% 107.3% 93.5% 91.3% Preferred P&C Insurance Combined Ratio as Reported 115.5% 116.6% 118.9% 105.4% 96.2% Current Year Catastrophe Loss and LAE Ratio (4.6)% (14.3)% (14.8)% (14.8)% 3.1% Prior Years Non-Catastrophe Losses and LAE (5.2)% 0.0% (3.1)% (0.1)% (5.6)% Prior Years Catastrophe Losses and LAE Ratio 1.2% (0.1)% 2.1% 0.2% (0.1)% Underlying Combined Ratio 106.9% 102.2% 103.1% 90.7% 93.6% Preferred Auto Combined Ratio as Reported 135.5% 117.4% 117.3% 99.5% 112.3% Current Year Catastrophe Loss and LAE Ratio (1.3)% (2.6)% (2.7)% (0.6)% (0.4)% Prior Years Non-Catastrophe Losses and LAE (7.2)% (0.1)% (3.5)% (1.2)% (9.2)% Prior Years Catastrophe Losses and LAE Ratio 0.1% (0.1)% 0.2% (0.1)% 0.4% Underlying Combined Ratio 127.1% 114.6% 111.3% 97.6% 103.1% Preferred Home & Other Combined Ratio as Reported 82.5% 115.2% 121.8% 115.7% 68.6% Current Year Catastrophe Loss and LAE Ratio (10.1)% (33.9)% (35.8)% (39.5)% 9.2% Prior Years Non-Catastrophe Losses and LAE (1.8)% 0.2% (2.3)% 1.9% 0.6% Prior Years Catastrophe Losses and LAE Ratio 3.1% 0.0% 5.4% 0.7% (0.8)% Underlying Combined Ratio 73.7% 81.5% 89.1% 78.8% 77.6% For the Three Months Ended

 
Earnings Call Presentation – 4Q 2021 As Adjusted for Acquisition amounts are non-GAAP financial measures. Subsequent to the applicable acquisitions, the As Adjusted for Acquisitions amounts are computed by subtracting the impact of purchase accounting adjustments from the comparable consolidated GAAP financial measure reported by Kemper. The Company believes computing and presenting results on an adjusted basis are useful to investors and are used by management to provide meaningful and comparable year-over-year comparisons. Non-GAAP Financial Measures 26

 
Earnings Call Presentation – 4Q 2021 As Adjusted for Acquisition – Continued Non-GAAP Financial Measures ¹ As Adjusted is a non-GAAP measure, which is comprised by excluding impact of purchase accounting in 2020 and 2021 and including historical results of Kemper and AAC in periods prior to acquisition date of April 1, 2021. 27 ($ in millions, except per share data) 31-Dec-21 30-Sep-21 30-Jun-21 31-Mar-21 31-Dec-20 Earned Premiums Kemper - GAAP As Reported 1,359.1$ 1,356.1$ 1,337.7$ 1,200.8$ 1,214.0$ AAC - Prior to Acquisition - - - 87.9 91.2 As Adjusted 1 1,359.1$ 1,356.1$ 1,337.7$ 1,288.7$ 1,305.2$ Net Income (Loss) Kemper - GAAP As Reported (105.8)$ (75.3)$ (62.6)$ 123.2$ 97.5$ AAC - Prior to Acquisition - - - 6.1 16.9 Less: Impact of Purchase Accounting (4.5) (6.7) (10.1) (1.8) (3.2) As Adjusted 1 (101.3)$ (68.6)$ (52.5)$ 131.1$ 117.6$ As Adjusted 1 - Per Diluted Share (1.59)$ (1.08)$ (0.82)$ 1.97$ 1.77$ Adjusted Consolidated Net Operating Income (Loss) Kemper - GAAP As Reported (130.8)$ (75.8)$ (99.4)$ 87.2$ 105.8$ AAC - Prior to Acquisition - - - 12.3 9.5 Less: Impact of Purchase Accounting (4.5) (6.7) (10.1) (1.8) (3.2) As Adjusted 1 (126.3)$ (69.1)$ (89.3)$ 101.3$ 118.5$ As Adjusted 1 - Per Diluted Share (1.98)$ (1.08)$ (1.39)$ 1.52$ 1.78$ Three Months Ended

 
Earnings Call Presentation – 4Q 2021 As Adjusted for Acquisition – Continued Non-GAAP Financial Measures ¹ As Adjusted is a non-GAAP measure, which is comprised by excluding impact of purchase accounting in 2020 and 2021 and including historical results of Kemper and AAC in periods prior to acquisition date of April 1, 2021. 28 Specialty P&C Insurance Segment ($ in millions) 31-Dec-21 30-Sep-21 30-Jun-21 31-Mar-21 31-Dec-20 Earned Premiums Kemper Specialty P&C - GAAP As Reported 1,032.3$ 1,028.3$ 1,010.3$ 877.6$ 882.4$ AAC - Prior to Acquisition - - - 87.9 91.2 As Adjusted 1 1,032.3$ 1,028.3$ 1,010.3$ 965.5$ 973.6$ Current Year Non-CAT Losses and LAE Kemper Specialty P&C - GAAP As Reported 1,028.5$ 924.4$ 877.4$ 650.0$ 626.2$ AAC - Prior to Acquisition - - - 62.0 62.4 Less: Impact of Purchase Accounting Amortization of Fair Value Adjustment to Unpaid Loss and LAE 0.2 0.3 0.3 0.4 0.4 As Adjusted 1 1,028.3$ 924.1$ 877.1$ 711.6$ 688.2$ Insurance Expenses Kemper Specialty P&C - GAAP As Reported 204.4$ 194.2$ 205.6$ 170.3$ 179.1$ AAC - Prior to Acquisition - - - 13.1 17.2 Less: Impact of Purchase Accounting 5.9 8.6 12.9 2.3 4.1 As Adjusted 1 198.5$ 185.6$ 192.7$ 181.1$ 192.2$ As Adjusted 1 Underlying Combined Ratio As Adjusted 1 Underlying Loss & LAE Ratio 99.6% 89.9% 86.8% 73.7% 70.7% As Adjusted 1 Expense Ratio 19.2% 18.0% 19.2% 18.8% 19.7% As Adjusted 1 Underlying Combined Ratio 118.8% 107.9% 105.9% 92.5% 90.4% Three Months Ended

 
Earnings Call Presentation – 4Q 2021 As Adjusted for Acquisition – Continued Non-GAAP Financial Measures ¹ As Adjusted is a non-GAAP measure, which is comprised by excluding impact of purchase accounting in 2020 and 2021 and including historical results of Kemper and AAC in periods prior to acquisition date of April 1, 2021. 29 Specialty Personal Automobile Insurance ($ in millions) 31-Dec-21 30-Sep-21 30-Jun-21 31-Mar-21 31-Dec-20 Earned Premiums Kemper Specialty P&C - GAAP As Reported 918.1$ 920.6$ 909.6$ 785.4$ 796.1$ AAC - Prior to Acquisition - - - 87.9 91.2 As Adjusted 1 918.1$ 920.6$ 909.6$ 873.3$ 887.3$ Current Year Non-CAT Losses and LAE Kemper Specialty P&C - GAAP As Reported 938.5$ 843.9$ 805.1$ 586.4$ 569.1$ AAC - Prior to Acquisition - - - 62.0 62.4 Less: Impact of Purchase Accounting Amortization of Fair Value Adjustment to Unpaid Loss and LAE 0.2 0.3 0.2 0.3 0.3 As Adjusted 1 938.3$ 843.6$ 804.9$ 648.1$ 631.2$ Insurance Expenses Kemper Specialty P&C - GAAP As Reported 184.3$ 176.0$ 187.7$ 155.3$ 162.8$ AAC - Prior to Acquisition - - - 13.1 17.2 Less: Impact of Purchase Accounting 5.5 8.1 12.4 1.8 3.3 As Adjusted 1 178.8$ 167.9$ 175.3$ 166.6$ 176.7$ As Adjusted 1 Underlying Combined Ratio As Adjusted 1 Underlying Loss & LAE Ratio 102.2% 91.6% 88.5% 74.2% 71.1% As Adjusted 1 Expense Ratio 19.5% 18.2% 19.3% 19.1% 19.9% As Adjusted 1 Underlying Combined Ratio 121.7% 109.9% 107.8% 93.3% 91.1% Three Months Ended