kmpr-20210429

Exhibit 99.1


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



Press Release

Kemper Reports Strong First Quarter 2021 Operating Results

CHICAGO, April 29, 2021 — Kemper Corporation (NYSE: KMPR) reported net income of $123.2 million, or $1.85 per diluted share, for the first quarter of 2021, compared to $64.0 million, or $0.95 per diluted share, for the first quarter of 2020. In the first quarter of 2021, net income included a $41.2 million after-tax gain, or $0.62 per diluted share, attributable to the change in fair value of equity and convertible securities.

Adjusted Consolidated Net Operating Income1 was $87.2 million, or $1.31 per diluted share, for the first quarter of 2021, compared to $162.9 million, or $2.43 per diluted share, for the first quarter of 2020.

Highlights of the quarter include:

•Specialty P&C earned premiums increased 7% and policies-in-force (ex. Classic Car) grew ~2%, reflecting headwinds from continued state shut-downs early in the quarter impacting shopping behavior

•Underlying Specialty combined ratio was 94%, in line with 1Q’20 as miles driven and corresponding accident frequency are increasing

• Repurchased shares worth $47 million

• Kemper remains well positioned to support customers and grow long-term shareholder value

“I’m pleased to report that Kemper, despite some short-term headwinds, continued to deliver solid results and intrinsic value to our shareholders,” said Joseph P. Lacher, Jr., President and Chief Executive Officer. “This quarter, we continued to generate double-digit ROE and growth in tangible book value per share excluding fixed income unrealized gains and losses. Our Specialty Auto business continues to produce strong earnings, and although we saw impacts from slower state re-openings, our Specialty Auto business reported net operating income of $80 million, or 33% over the prior year quarter, with the top line increasing by 7%. The business remains well-positioned for attractive long-term growth and returns.”

“Further, since the beginning of the year, we have deployed roughly $500 million of capital through several actions. These demonstrate our thoughtful approach to capital deployment. Notable items include the repurchase of approximately $85 million in stock, the repayment of a $50 million term loan, an increase in our annual dividend to $1.24 per share, and the close of our acquisition of American Access. The strength of Kemper’s business model and our history of effective strategy execution positions us to navigate through the pandemic recovery. We feel confident that we will continue to meet the ongoing needs of our customers, as well as provide quality results and value creation for our stakeholders.”

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


	Three Months Ended
(Dollars in Millions, Except Per Share Amounts) (Unaudited)	Mar 31, 2021		Mar 31, 2020
Net Income	$	123.2	$	64.0

Adjusted Consolidated Net Operating Income (Loss) 1	$	87.2	$	162.9

Impact of Catastrophe Losses and Related Loss Adjustment Expense (LAE) on Net Income	$	(21.8)	$	(4.6)

Diluted Net Income Per Share From:
Net Income	$	1.85	$	0.95

Adjusted Consolidated Net Operating Income (Loss) 1	$	1.31	$	2.43

Impact of Catastrophe Losses and Related LAE on Net Income Per Share	$	(0.33)	$	(0.07)

Capital

Total Shareholders’ Equity at the end of the quarter was $4,339.1 million, a decrease of $224.3 million, or 5 percent, since year-end 2020 primarily driven by a decrease in the valuation of our fixed income bond portfolio, cash dividends and repurchases of common stock, partially offset by net income. Kemper and its direct non-insurance subsidiaries ended the quarter with cash and investments of $607.1 million, and the $400.0 million revolving credit agreement was undrawn.

During the first quarter of 2021, Kemper paid dividends of $21.0 million.

On February 23, 2021, Kemper announced that its Board of Directors declared a quarterly dividend of $0.31 per share.

Kemper ended the quarter with a book value per share of $66.74, a decrease of 4 percent from $69.74 at the end of 2020. Book Value Per Share Excluding Net Unrealized Gains on Fixed Maturities1 was $60.00, up 2 percent from $58.67 at the end of 2020.

Revenues

Total revenues for the first quarter of 2021 increased $123.0 million, or 10.0 percent, to $1,352.0 million, compared to the first quarter of 2020, driven by $55.1 million of higher Specialty P&C earned premiums and a $170.0 million increase attributable to the change in fair value of equity and convertible securities. Specialty P&C earned premiums increased due primarily to higher premium volume. Net investment income increased $17.5 million to $103.1 million in the first quarter of 2021 due primarily to the continued recovery of Alternative Investments and higher levels of investments in fixed income securities, partially offset by lower yields on fixed income securities. Net realized investment gains were $13.8 million in the first quarter of 2021, compared to $16.5 million in the first quarter of 2020. Other income decreased from $90.3 million to $1.5 million in the first quarter of 2021. The first quarter of 2020 included a final judgment received by the Company in connection with an arbitration award against Computer Sciences Corporation.

Segment Results

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


	Three Months Ended
(Dollars in Millions) (Unaudited)	Mar 31, 2021		Mar 31, 2020
Segment Net Operating Income (Loss):
Specialty Property & Casualty Insurance	$	80.1	$	60.1
Preferred Property & Casualty Insurance	9.6		18.4
Life & Health Insurance	7.3		22.3
Total Segment Net Operating Income (Loss)	97.0		100.8
Corporate and Other Net Operating Income (Loss)	(9.8)		62.1
Adjusted Consolidated Net Operating Income (Loss) 1	87.2		162.9
Net Income (Loss) From:
Change in Fair Value of Equity and Convertible Securities	41.2		(93.1)
Net Realized Gains on Sales of Investments	10.9		13.0
Impairment Losses	(3.2)		(9.5)
Acquisition Related Transaction, Integration and Other Costs	(12.9)		(9.3)
Loss from Early Extinguishment of Debt	—		—
Net Income	$	123.2	$	64.0

The Specialty Property & Casualty Insurance segment reported net operating income of $80.1 million for the first quarter of 2021, compared to $60.1 million in the first quarter of 2020. Results improved due primarily to higher premium volume and an improvement in underlying losses and LAE. The segment’s Underlying Combined Ratio1 was 93.5 percent, compared to 93.9 percent in the first quarter of 2020.

The Preferred Property & Casualty Insurance segment reported net operating income of $9.6 million for the first quarter of 2021, compared to net operating income of $18.4 million in the first quarter of 2020. Results deteriorated due primarily to catastrophe losses and LAE (excluding loss and LAE reserve development), partially offset by an improvement in underlying losses and LAE. The Preferred Property & Casualty Insurance segment’s Underlying Combined Ratio1 improved 1.6 percentage points to 90.7 percent in the first quarter of 2021 due primarily to lower incurred losses and LAE as well as ongoing profit improvement actions.

The Life & Health Insurance segment reported net operating income of $7.3 million for the first quarter of 2021, compared to $22.3 million in the first quarter of 2020. Results deteriorated due primarily to an increase in COVID-related mortality, in line with country-wide trends.

Unaudited condensed consolidated statements of income for the three months ended March 31, 2021 and 2020 are presented below.


	Three Months Ended
(Dollars in Millions, Except Per Share Amounts)	Mar 31, 2021		Mar 31, 2020
Revenues:
Earned Premiums	$	1,200.8	$	1,166.4
Net Investment Income	103.1		85.6
Change in Value of Alternative Energy Partnership Investments2	(15.4)		—
Other Income	1.5		90.3
Income (Loss) from Change in Fair Value of Equity and Convertible Securities	52.2		(117.8)
Net Realized Gains on Sales of Investments	13.8		16.5



Impairment Losses	(4.0)		(12.0)
Total Revenues	1,352.0		1,229.0
Expenses:
Policyholders’ Benefits and Incurred Losses and Loss Adjustment Expenses	889.5		835.2
Insurance Expenses	283.7		271.6
Loss from Early Extinguishment of Debt	—		—
Interest and Other Expenses	57.2		44.5
Total Expenses	1,230.4		1,151.3
Income from before Income Taxes	121.6		77.7
Income Tax Expense	1.6		(13.7)







Net Income	$	123.2	$	64.0

Income from Continuing Operations Per Unrestricted Share:
Basic	$	1.88	$	0.96
Diluted	$	1.85	$	0.95

Net Income Per Unrestricted Share:
Basic	$	1.88	$	0.96
Diluted	$	1.85	$	0.95

Weighted-average Outstanding (Shares in Thousands):
Unrestricted Shares - Basic	65,424.6		66,515.9
Unrestricted Shares and Equivalent Shares - Diluted	66,552.8		66,974.2

Dividends Paid to Shareholders Per Share	$	0.31	$	0.30

2The Alternative Energy Partnership Investments results are included as a pre-tax loss in the Change in Value of Alternative Energy Partnership Investments of $15.4 million and benefit in income tax expense of $28.6 million for a net income impact of $13.2 million.

Unaudited business segment revenues for the three months ended March 31, 2021 and 2020 are presented below.


	Three Months Ended
(Dollars in Millions)	Mar 31, 2021		Mar 31, 2020
REVENUES:
Specialty Property & Casualty Insurance:
Earned Premiums:
Specialty Automobile	$	785.4	$	753.2
Commercial Automobile	92.2		69.3
Total Earned Premiums	877.6		822.5
Net Investment Income	35.0		28.8
Change in Value of Alternative Energy Partnership Investments	(7.3)		—
Other Income	0.9		0.9
Total Specialty Property & Casualty Insurance Revenues	906.2		852.2
Preferred Property & Casualty Insurance:
Earned Premiums:
Preferred Automobile	103.0		114.9
Homeowners	50.8		56.8
Other Personal	8.4		9.2
Total Earned Premiums	162.2		180.9
Net Investment Income	15.9		9.7
Change in Value of Alternative Energy Partnership Investments	(4.1)		—

Total Preferred Property & Casualty Insurance Revenues	174.0		190.6
Life & Health Insurance:
Earned Premiums:
Life	98.1		97.2
Accident & Health	47.4		49.4
Property	15.5		16.4
Total Earned Premiums	161.0		163.0
Net Investment Income	51.1		51.0
Change in Value of Alternative Energy Partnership Investments	(4.0)		—
Other Income	0.1		0.1
Total Life & Health Insurance Revenues	208.2		214.1
Total Segment Revenues	1,288.4		1,256.9
Income (Loss) from Change in Fair Value of Equity and Convertible Securities	52.2		(117.8)
Net Realized Gains on Sales of Investments	13.8		16.5
Impairment Losses	(4.0)		(12.0)
Other	1.6		85.4
Total Revenues	$	1,352.0	$	1,229.0

KEMPER CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(Dollars in Millions)

(Unaudited)


	Mar 31, 2021		Dec 31, 2020
Assets:
Investments:
Fixed Maturities at Fair Value	$	7,479.4	$	7,605.9
Equity Securities at Fair Value	897.4		858.5
Equity Securities at Modified Cost	36.0		40.1
Equity Method Limited Liability Investments at Cost Plus Cumulative Undistributed Earnings	219.2		204.0
Alternative Energy Partnership Investments	54.4		21.3
Convertible Securities at Fair Value	42.6		39.9

Short-term Investments at Cost which Approximates Fair Value	196.9		875.4
Other Investments	896.8		779.0
Total Investments	9,822.7		10,424.1
Cash	547.4		206.1
Receivables from Policyholders	1,260.9		1,194.5
Other Receivables	225.4		222.4
Deferred Policy Acquisition Costs	611.7		589.3
Goodwill	1,114.0		1,114.0
Current Income Tax Assets	65.6		15.6

Other Assets	556.0		575.9
Total Assets	$	14,203.7	$	14,341.9
Liabilities and Shareholders’ Equity:
Insurance Reserves:
Life & Health	$	3,541.6	$	3,527.5
Property & Casualty	1,999.5		1,982.5
Total Insurance Reserves	5,541.1		5,510.0
Unearned Premiums	1,713.0		1,615.1
Policyholder Contract Liabilities	466.5		467.0

Deferred Income Tax Liabilities	227.6		285.7

Accrued Expenses and Other Liabilities	793.8		727.9
Debt at Amortized Cost	1,122.6		1,172.8
Total Liabilities	9,864.6		9,778.5
Shareholders’ Equity:
Common Stock	6.5		6.5
Paid-in Capital	1,802.1		1,805.2
Retained Earnings	2,140.0		2,071.2
Accumulated Other Comprehensive Income	390.5		680.5
Total Shareholders’ Equity	4,339.1		4,563.4
Total Liabilities and Shareholders’ Equity	$	14,203.7	$	14,341.9

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


	Three Months Ended
(Dollars in Millions)	Mar 31, 2021			Mar 31, 2020

Results of Operations
Net Premiums Written	$	972.0		$	911.2





Earned Premiums	$	877.6		$	822.5
Net Investment Income	35.0			28.8
Change in Value of Alternative Energy Partnership Investments	(7.3)			—
Other Income	0.9			0.9
Total Revenues	906.2			852.2
Incurred Losses and LAE related to:
Current Year:
Non-catastrophe Losses and LAE	650.0			619.8
Catastrophe Losses and LAE	1.7			0.2
Prior Years:
Non-catastrophe Losses and LAE	(1.4)			5.3
Catastrophe Losses and LAE	0.4			0.2
Total Incurred Losses and LAE	650.7			625.5
Insurance Expenses	170.3			152.1
Other Expenses	—			(0.4)

Operating Income (Loss)	85.2			75.0
Income Tax Benefit (Expense)	(5.1)			(14.9)
Segment Net Operating Income (Loss)	$	80.1		$	60.1

Ratios Based On Earned Premiums
Current Year Non-catastrophe Losses and LAE Ratio	74.1		%	75.4		%
Current Year Catastrophe Losses and LAE Ratio	0.2			—
Prior Years Non-catastrophe Losses and LAE Ratio	(0.2)			0.6
Prior Years Catastrophe Losses and LAE Ratio	—			—
Total Incurred Loss and LAE Ratio	74.1			76.0
Insurance Expense Ratio	19.4			18.5

Combined Ratio	93.5		%	94.5		%

Underlying Combined Ratio1
Current Year Non-catastrophe Losses and LAE Ratio	74.1		%	75.4		%
Insurance Expense Ratio	19.4			18.5

Underlying Combined Ratio1	93.5		%	93.9		%

Non-GAAP Measure Reconciliation
Combined Ratio	93.5		%	94.5		%
Less:
Current Year Catastrophe Losses and LAE Ratio	0.2			—
Prior Years Non-catastrophe Losses and LAE Ratio	(0.2)			0.6
Prior Years Catastrophe Losses and LAE Ratio	—			—
Underlying Combined Ratio1	93.5		%	93.9		%

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


	Three Months Ended
(Dollars in Millions)	Mar 31, 2021			Mar 31, 2020

Results of Operations
Net Premiums Written	$	154.4		$	164.1






Earned Premiums	$	162.2		$	180.9
Net Investment Income	15.9			9.7
Change in Value of Alternative Energy Partnership Investments	(4.1)			—

Total Revenues	174.0			190.6
Incurred Losses and LAE related to:
Current Year:
Non-catastrophe Losses and LAE	96.2			108.5
Catastrophe Losses and LAE	24.0			4.8
Prior Years:
Non-catastrophe Losses and LAE	0.1			(3.3)
Catastrophe Losses and LAE	(0.3)			(1.1)
Total Incurred Losses and LAE	120.0			108.9
Insurance Expenses	51.0			58.7


Operating Income (Loss)	3.0			23.0
Income Tax Benefit (Expense)	6.6			(4.6)
Segment Net Operating Income (Loss)	$	9.6		$	18.4

Ratios Based On Earned Premiums
Current Year Non-catastrophe Losses and LAE Ratio	59.3		%	59.9		%
Current Year Catastrophe Losses and LAE Ratio	14.8			2.7
Prior Years Non-catastrophe Losses and LAE Ratio	0.1			(1.8)
Prior Years Catastrophe Losses and LAE Ratio	(0.2)			(0.6)
Total Incurred Loss and LAE Ratio	74.0			60.2
Insurance Expense Ratio	31.4			32.4

Combined Ratio	105.4		%	92.6		%

Underlying Combined Ratio1
Current Year Non-catastrophe Losses and LAE Ratio	59.3		%	59.9		%
Insurance Expense Ratio	31.4			32.4

Underlying Combined Ratio1	90.7		%	92.3		%

Non-GAAP Measure Reconciliation
Combined Ratio	105.4		%	92.6		%
Less:
Current Year Catastrophe Losses and LAE Ratio	14.8			2.7
Prior Years Non-catastrophe Losses and LAE Ratio	0.1			(1.8)
Prior Years Catastrophe Losses and LAE Ratio	(0.2)			(0.6)
Underlying Combined Ratio1	90.7		%	92.3		%

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


	Three Months Ended
(Dollars in Millions)	Mar 31, 2021		Mar 31, 2020

Results of Operations





Earned Premiums	$	161.0	$	163.0
Net Investment Income	51.1		51.0
Change in Value of Alternative Energy Partnership Investments	(4.0)		—
Other Income	0.1		0.1
Total Revenues	208.2		214.1
Policyholders’ Benefits and Incurred Losses and LAE	118.7		100.7
Insurance Expenses	90.3		86.9
Operating Income (Loss)	(0.8)		26.5
Income Tax Benefit (Expense)	8.1		(4.2)
Segment Net Operating Income (Loss)	$	7.3	$	22.3

Use of Non-GAAP Financial Measures

Adjusted Consolidated Net Operating Income (Loss) 1

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

Kemper believes that Adjusted Consolidated Net Operating Income (Loss) 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 on sales of investments and impairment losses related to investments included in the Company’s results may vary significantly between periods and are generally driven by business decisions and external economic developments such as capital market conditions that impact the values of the Company’s investments, the timing of which is unrelated to the insurance underwriting process. Loss from early extinguishment of debt is driven by the Company’s financing and refinancing decisions and capital needs, as well as external economic developments such as debt market conditions, the timing of which is unrelated to the insurance underwriting process. Acquisition related transaction, integration and other costs may vary significantly between periods and are generally driven by the timing of acquisitions and business decisions which are unrelated to the insurance underwriting process. Significant non-recurring items are excluded because, by their nature, they are not indicative of the Company’s business or economic trends.

A reconciliation of Net Income to Adjusted Consolidated Net Operating Income (Loss) 1 for the three months ended March 31, 2021 and 2020 is presented below.


	Three Months Ended
(Dollars in Millions) (Unaudited)	Mar 31, 2021		Mar 31, 2020
Net Income	$	123.2	$	64.0
Less Net Income (Loss) From:
Change in Fair Value of Equity and Convertible Securities	41.2		(93.1)
Net Realized Gains on Sales of Investments	10.9		13.0
Impairment Losses	(3.2)		(9.5)
Acquisition Related Transaction, Integration and Other Costs	(12.9)		(9.3)

Adjusted Consolidated Net Operating Income (Loss) 1	$	87.2	$	162.9

Diluted Adjusted Consolidated Net Operating Income Per Unrestricted Share1

Diluted Adjusted Consolidated Net Operating Income Per Unrestricted Share1 is a non-GAAP financial measure computed by dividing Adjusted Consolidated Net Operating 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.

A reconciliation of Diluted Net Income to Diluted Adjusted Consolidated Net Operating Income Per Unrestricted Share1 for the three months ended March 31, 2021 and 2020 is presented below.


	Three Months Ended
(Unaudited)	Mar 31, 2021		Mar 31, 2020
Diluted Net Income	$	1.85	$	0.95
Less Net Income (Loss) Per Unrestricted Share From:
Change in Fair Value of Equity and Convertible Securities	0.62		(1.39)
Net Realized Gains on Sales of Investments	0.16		0.19
Impairment Losses	(0.05)		(0.14)
Acquisition Related Transaction, Integration and Other Costs	(0.19)		(0.14)

Diluted Adjusted Consolidated Net Operating Income Per Unrestricted Share1	$	1.31	$	2.43

Book Value Per Share Excluding Net Unrealized Gains on Fixed Maturities1

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

A reconciliation of the numerator used in the computation of Book Value Per Share Excluding Net Unrealized Gains on Fixed Maturities1 and Book Value Per Share at March 31, 2021 and December 31, 2020 is presented below.


(Dollars in Millions) (Unaudited)	Mar 31, 2021		Dec 31, 2020
Shareholders’ Equity	$	4,339.1	$	4,563.4
Net Unrealized Gains on Fixed Maturities	438.0		724.0
Shareholders’ Equity Excluding Net Unrealized Gains on Fixed Maturities1	$	3,901.1	$	3,839.4

Underlying Combined Ratio1

Underlying Combined Ratio1 is a non-GAAP financial measure that is computed by adding the current year non-catastrophe losses and LAE ratio with the insurance expense ratio. The most directly comparable GAAP financial measure is the combined ratio, which is computed by adding total incurred losses and LAE, including the impact of catastrophe losses and loss and LAE reserve development from prior years, with the insurance expense ratio. Kemper believes the Underlying Combined Ratio is useful to investors and is used by management to reveal the trends in Kemper’s property and casualty insurance businesses that may be obscured by catastrophe losses and prior-year reserve development. These catastrophe losses may cause loss trends to vary significantly between periods as a result of their incidence of occurrence and magnitude, and can have a significant impact on incurred losses and LAE and the combined ratio. Prior-year reserve development is caused by unexpected loss development on historical reserves. Because reserve development relates to the re-estimation of losses from earlier periods, it has no bearing on the performance of the company’s insurance products in the current period. Kemper believes it is useful for investors to evaluate these components separately and in the aggregate when reviewing its underwriting performance. The Underlying Combined Ratio1 should not be considered a substitute for the combined ratio and does not reflect the overall underwriting profitability of our business.

Conference Call

Kemper will discuss its first quarter 2021 results in a conference call on Thursday, April 29th, at 5:00 p.m. Eastern (4:00 p.m. Central) Time. Kemper’s conference call will be accessible via the internet and by telephone. The phone number for Kemper’s conference call is 844.826.3041. To listen via webcast, register online at the investor section of kemper.com at least 15 minutes prior to the webcast to download and install any necessary software.

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

More detailed financial information can be found in Kemper’s Investor Financial Supplement and Earnings Call Presentation for the first quarter of 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 $14.2 billion in assets, Kemper is improving the world of insurance by providing affordable and easy-to-use personalized solutions to individuals, families and businesses through its Auto, Personal Insurance, Life and Health brands. Kemper serves over 6.3 million policies, is represented by more than 30,000 agents and brokers, and has over 9,500 associates dedicated to meeting the ever-changing needs of its customers.

Learn more about Kemper at the Company’s website, kemper.com.

Caution Regarding Forward-Looking Statements

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

statements involve a number of risks and uncertainties that are difficult to predict and are not guarantees of future performance. Among the general factors that could cause actual results and financial condition to differ materially from estimated results and financial condition are those factors listed in periodic reports filed by Kemper with the Securities and Exchange Commission (“SEC”). The COVID-19 outbreak and subsequent global pandemic (“Pandemic”) is an extraordinary event that creates unique uncertainties and risks. Kemper cannot provide any assurances as to the impacts of the Pandemic and related economic conditions on the Company’s operating and financial results.

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

###


Contacts
Investors: Christine Patrick			312.661.4803 or [email protected]
Media: Barbara Ciesemier			312.661.4521 or [email protected]

Exhibit 99.2

Investor Supplement

First Quarter 2021

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

Non-GAAP Financial Measures

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

Caution Regarding Forward-Looking Statements

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

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

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

Kemper Corporation

Investor Supplement

First Quarter 2021

Table of Contents



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

Kemper Corporation

Consolidated Financial Highlights

(Dollars in Millions, Except Per Share Amounts)

(Unaudited)


	Three Months Ended
		Mar 31, 2021			Dec 31, 2020			Sep 30, 2020			Jun 30, 2020			Mar 31, 2020
For Period Ended
Earned Premiums		$	1,200.8		$	1,214.0		$	1,206.5		$	1,085.3		$	1,166.4
Net Investment Income		103.1			102.7			92.1			67.8			85.6
Change in Value of Alternative Energy Partnership Investments		(15.4)			—			—			—			—
Other Income		1.5			1.9			0.9			1.5			90.3
Income (Loss) from Change in Fair Value of Equity and Convertible Securities		52.2			73.1			45.2			71.6			(117.8)
Net Investment Gains (Loss)		9.8			0.4			9.0			4.7			4.5
Total Revenues		$	1,352.0		$	1,392.1		$	1,353.7		$	1,230.9		$	1,229.0

Net Income		$	123.2		$	97.5		$	122.3		$	126.1		$	64.0

Adjusted Consolidated Net Operating Income (Loss) 1		$	87.2		$	105.8		$	90.9		$	79.2		$	162.9

Per Unrestricted Common Share Amounts:
Basic:
Net Income		$	1.88		$	1.49		$	1.87		$	1.93		$	0.96

Adjusted Consolidated Net Operating Income (Loss) 1		$	1.33		$	1.62		$	1.39		$	1.21		$	2.45
Diluted:
Net Income		$	1.85		$	1.46		$	1.83		$	1.91		$	0.95

Adjusted Consolidated Net Operating Income (Loss) 1		$	1.31		$	1.59		$	1.36		$	1.20		$	2.43

Dividends Paid to Shareholders Per Share		$	0.31		$	0.30		$	0.30		$	0.30		$	0.30

At Period End
Total Assets		$	14,203.7		$	14,341.9		$	14,090.4		$	13,489.4		$	12,932.3
Insurance Reserves		$	5,541.1		$	5,510.0		$	5,461.5		$	5,375.0		$	5,442.4
Debt		$	1,122.6		$	1,172.8		$	1,173.0		$	777.7		$	778.1
Shareholders’ Equity		$	4,339.1		$	4,563.4		$	4,347.5		$	4,187.9		$	3,760.8
Shareholders’ Equity Excluding Goodwill1,2		$	3,225.1		$	3,449.4		$	3,233.5		$	3,073.9		$	2,646.8
Common Shares Issued and Outstanding (In Millions)		65.016			65.436			65.406			65.282			65.365
Book Value Per Share2		$	66.74		$	69.74		$	66.47		$	64.15		$	57.54
Book Value Per Share Excluding Goodwill1,2		$	49.60		$	52.71		$	49.44		$	47.09		$	40.49
Book Value Per Share Excluding Net Unrealized Gains on Fixed Maturities1,2		$	60.00		$	58.67		$	56.63		$	55.13		$	53.53
Book Value Per Share Excluding Net Unrealized Gains on Fixed Maturities and Goodwill1,2		$	42.87		$	41.65		$	39.60		$	38.07		$	36.49
Debt to Total Capitalization2		20.6		%	20.4		%	21.2		%	15.7		%	17.1		%
Rolling 12 Months Return on 5-point Average Shareholders Equity2,3		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.

Kemper Corporation

Consolidated Statements of Income

(Dollars in Millions, Except Per Share Amounts)

(Unaudited)


	Three Months Ended
		Mar 31, 2021		Dec 31, 2020		Sep 30, 2020		Jun 30, 2020		Mar 31, 2020
Revenues:
Earned Premiums		$	1,200.8	$	1,214.0	$	1,206.5	$	1,085.3	$	1,166.4
Net Investment Income		103.1		102.7		92.1		67.8		85.6
Change in Value of Alternative Energy Partnership Investments		(15.4)		—		—		—		—
Other Income		1.5		1.9		0.9		1.5		90.3
Income (Loss) from Change in Fair Value of Equity and Convertible Securities		52.2		73.1		45.2		71.6		(117.8)
Net Realized Gains on Sales of Investments		13.8		(0.1)		10.0		11.7		16.5



Impairment Losses		(4.0)		0.5		(1.0)		(7.0)		(12.0)
Total Revenues		1,352.0		1,392.1		1,353.7		1,230.9		1,229.0
Expenses:
Policyholders’ Benefits and Incurred Losses and Loss Adjustment Expenses		889.5		863.4		877.5		747.5		835.2
Insurance Expenses		283.7		279.3		276.9		272.7		271.6

Interest and Other Expenses		57.2		128.8		47.2		51.0		44.5
Total Expenses		1,230.4		1,271.5		1,201.6		1,071.2		1,151.3
Income before Income Taxes		121.6		120.6		152.1		159.7		77.7
Income Tax Benefit (Expense)		1.6		(23.1)		(29.8)		(33.6)		(13.7)







Net Income		$	123.2	$	97.5	$	122.3	$	126.1	$	64.0
Income Per Unrestricted Share:
Basic		$	1.88	$	1.49	$	1.87	$	1.93	$	0.96
Diluted		$	1.85	$	1.46	$	1.83	$	1.91	$	0.95
Net Income Per Unrestricted Share:
Basic		$	1.88	$	1.49	$	1.87	$	1.93	$	0.96
Diluted		$	1.85	$	1.46	$	1.83	$	1.91	$	0.95
Dividends Paid to Shareholders Per Share		$	0.31	$	0.30	$	0.30	$	0.30	$	0.30
Weighted Average Unrestricted Common Shares Outstanding (in Millions)		65.425		65.414		65.363		65.258		66.516

Kemper Corporation

Consolidated Balance Sheets

(Dollars in Millions)

(Unaudited)


	Mar 31, 2021		Dec 31, 2020		Sep 30, 2020		Jun 30, 2020		Mar 31, 2020
Assets:
Investments:
Fixed Maturities at Fair Value	$	7,479.4	$	7,605.9	$	7,504.8	$	7,480.4	$	6,998.5
Equity Securities at Fair Value	897.4		858.5		788.2		783.3		709.8
Equity Securities at Modified Cost	36.0		40.1		48.4		48.1		44.8
Equity Method Limited Liability Investments	219.2		204.0		206.2		209.9		226.3
Alternative Energy Partnerships	54.4		21.3		—		—		—
Convertible Securities at Fair Value	42.6		39.9		36.3		35.0		32.8
Short-term Investments at Cost which Approximates Fair Value	196.9		875.4		628.8		154.2		166.7
Other Investments	896.8		779.0		762.8		757.5		760.2
Total Investments	9,822.7		10,424.1		9,975.5		9,468.4		8,939.1
Cash	547.4		206.1		352.2		389.3		301.3
Receivables from Policyholders	1,260.9		1,194.5		1,249.3		1,165.3		1,219.1
Other Receivables	225.4		222.4		214.0		207.1		207.8
Deferred Policy Acquisition Costs	611.7		589.3		578.2		560.8		551.5
Goodwill	1,114.0		1,114.0		1,114.0		1,114.0		1,114.0
Current Income Tax Assets	65.6		15.6		33.1		3.5		17.8

Other Assets	556.0		575.9		574.1		581.0		581.7
Total Assets	$	14,203.7	$	14,341.9	$	14,090.4	$	13,489.4	$	12,932.3
Liabilities and Shareholders’ Equity:
Insurance Reserves:
Life and Health	$	3,541.6	$	3,527.5	$	3,511.5	$	3,497.7	$	3,500.8
Property and Casualty	1,999.5		1,982.5		1,950.0		1,877.3		1,941.6
Total Insurance Reserves	5,541.1		5,510.0		5,461.5		5,375.0		5,442.4
Unearned Premiums	1,713.0		1,615.1		1,681.6		1,642.6		1,621.4
Policyholder Contract Liabilities	466.5		467.0		503.7		520.3		430.5

Deferred Income Tax Liabilities	227.6		285.7		245.5		226.8		116.0

Accrued Expenses and Other Liabilities	793.8		727.9		677.6		759.1		783.1
Long-term Debt, Current and Non-current, at Amortized Cost	1,122.6		1,172.8		1,173.0		777.7		778.1
Total Liabilities	9,864.6		9,778.5		9,742.9		9,301.5		9,171.5
Shareholders’ Equity:
Common Stock	6.5		6.5		6.5		6.5		6.5
Paid-in Capital	1,802.1		1,805.2		1,798.5		1,792.5		1,788.2
Retained Earnings	2,140.0		2,071.2		1,993.5		1,891.6		1,791.2
Accumulated Other Comprehensive Income	390.5		680.5		549.0		497.3		174.9
Total Shareholders’ Equity	4,339.1		4,563.4		4,347.5		4,187.9		3,760.8
Total Liabilities and Shareholders’ Equity	$	14,203.7	$	14,341.9	$	14,090.4	$	13,489.4	$	12,932.3


Kemper Corporation Consolidated Statements of Cash Flows (Dollars in Millions) (Unaudited)
	Three Months Ended
	Mar 31, 2021		Mar 31, 2020
Cash Flows from Operating Activities:
Net Income	$	123.2	$	64.0
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities:
Net Realized Investment Gains	(13.8)		(16.5)
Impairment Losses	4.0		12.0
Depreciation and Amortization of Property, Equipment and Software	11.1		8.0
Amortization of Intangibles Assets Acquired	3.2		4.7



Change in Accumulated Undistributed Earnings of Equity Method Limited Liability Investments	(18.1)		(0.7)
(Income) Loss from Alternative Energy Partnership Investments	15.4		—
Decrease (Increase) in Value of Equity and Convertible Securities at Fair Value	(52.2)		117.8
Changes in:
Receivables from Policyholders	(66.7)		(94.3)
Reinsurance Recoverables	5.0		9.8
Deferred Policy Acquisition Costs	(21.3)		(13.8)
Insurance Reserves	29.8		(29.4)
Unearned Premiums	97.9		75.9
Income Taxes	(37.3)		14.7
Other	60.4		(89.9)
Net Cash Provided by Operating Activities	140.6		62.3


Kemper Corporation Consolidated Statements of Cash Flows (Dollars in Millions) (Unaudited)
	Three Months Ended
Net Cash Provided by Operating Activities (Carryforward from page 6)	$	140.6	$	62.3
Cash Flows from Investing Activities:
Proceeds from Sales, Calls, and Maturities of Fixed Maturities	291.2		225.5
Proceeds from the Sales of Investments:

Equity Securities	27.3		372.1
Real Estate Investments	—		1.9
Mortgage Loans	12.8		8.5
Other Investments	7.0		4.0
Purchases of Investments:
Fixed Maturities	(503.2)		(393.9)
Equity Securities	(12.5)		(290.0)
Real Estate Investments	(0.2)		(0.1)
Corporate-owned Life Insurance	(100.0)		(100.0)
Mortgage Loans	(33.7)		(4.6)
Other Investments	(50.1)		(9.2)
Net Purchases of Short-term Investments	677.4		301.8
Acquisition of Software and Long-lived Assets	(9.2)		(20.1)
Other	4.9		(1.9)
Net Cash Provided (Used In) by Investing Activities	311.7		94.0
Cash Flows from Financing Activities:

Repayment of Long-Term Debt	(50.0)		—
Proceeds from Policyholder Contract Liabilities	60.7		156.6
Repayment of Policyholder Contract Liabilities	(61.5)		(36.2)

Proceeds from Shares Issued under Employee Stock Purchase Plan	1.2		1.0
Common Stock Repurchases	(42.1)		(95.9)
Dividends and Dividend Equivalents Paid	(21.0)		(20.0)
Other	1.7		2.7
Net Cash Provided by Financing Activities	(111.0)		8.2
Increase in Cash	341.3		164.5
Cash, Beginning of Year	206.1		136.8
Cash, End of Period	$	547.4	$	301.3


Kemper Corporation Capital Metrics (Dollars and Shares in Millions, Except Per Share Amounts) (Unaudited)
	Three Months Ended
		Mar 31, 2021			Dec 31, 2020			Sep 30, 2020			Jun 30, 2020			Mar 31, 2020
Book Value Per Share
Numerator
Shareholders’ Equity		$	4,339.1		$	4,563.4		$	4,347.5		$	4,187.9		$	3,760.8
Less: Goodwill		(1,114.0)			(1,114.0)			(1,114.0)			(1,114.0)			(1,114.0)
Shareholders’ Equity Excluding Goodwill1		$	3,225.1		$	3,449.4		$	3,233.5		$	3,073.9		$	2,646.8
Shareholders’ Equity		$	4,339.1		$	4,563.4		$	4,347.5		$	4,187.9		$	3,760.8
Less: Net Unrealized Gains on Fixed Maturities		(438.0)			(724.0)			(643.7)			(588.6)			(261.6)
Shareholders’ Equity Excluding Net Unrealized Gains on Fixed Maturities1		$	3,901.1		$	3,839.4		$	3,703.8		$	3,599.3		$	3,499.2
Less: Goodwill		(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		$	2,787.1		$	2,725.4		$	2,589.8		$	2,485.3		$	2,385.2
Denominator
Common Shares Issued and Outstanding		65.016			65.436			65.406			65.282			65.365
Book Value Per Share		$	66.74		$	69.74		$	66.47		$	64.15		$	57.54
Book Value Per Share Excluding Goodwill1		$	49.60		$	52.71		$	49.44		$	47.09		$	40.49
Book Value Per Share Excluding Net Unrealized Gains on Fixed Maturities1		$	60.00		$	58.67		$	56.63		$	55.13		$	53.53
Book Value Per Share Excluding Net Unrealized Gains on Fixed Maturities and Goodwill1		$	42.87		$	41.65		$	39.60		$	38.07		$	36.49

Return on Shareholders’ Equity
Numerator
Rolling 12 Months Net Income		$	469.1		$	409.9		$	437.1		$	443.8		$	439.8
Denominator (5-point Average)
5-point Average Shareholders’ Equity		$	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)		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		$	3,125.7		$	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		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		$	3,708.5		$	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		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		$	2,594.5		$	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		18.1		%	16.3		%	17.9		%	18.8		%	19.5		%
1 Non-GAAP financial measure. See definitions beginning on page 34.


Kemper Corporation Capital Metrics (Dollars and Shares in Millions, Except Per Share Amounts) (Unaudited)
	Three Months Ended
		Mar 31, 2021			Dec 31, 2020			Sep 30, 2020			Jun 30, 2020			Mar 31, 2020

Debt and Total Capitalization
Debt		$	1,122.6		$	1,172.8		$	1,173.0		$	777.7		$	778.1
Shareholders’ Equity		4,339.1			4,563.4			4,347.5			4,187.9			3,760.8
Total Capitalization		$	5,461.7		$	5,736.2		$	5,520.5		$	4,965.6		$	4,538.9
Ratio of Debt to Shareholders’ Equity		25.9		%	25.7		%	27.0		%	18.6		%	20.7		%
Ratio of Debt to Total Capitalization		20.6		%	20.4		%	21.2		%	15.7		%	17.1		%

Parent Company Liquidity
Kemper Holding Company Cash and Investments1		$	607.1		$	733.2		$	738.7		$	270.5		$	199.1
Borrowings Available Under Credit Agreement		400.0			400.0			400.0			400.0			400.0
Parent Company Liquidity		$	1,007.1		$	1,133.2		$	1,138.7		$	670.5		$	599.1

Capital Returned to Shareholders
Cash Dividends Paid		$	21.0		$	19.7		$	19.7		$	19.7		$	20.0
1 Includes Kemper's direct non-insurance subsidiaries

Kemper Corporation

Debt Outstanding, FHLB Advances and Ratings

(Dollars in Millions)

(Unaudited)


	Mar 31, 2021		Dec 31, 2020		Sep 30, 2020		Jun 30, 2020		Mar 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, 2022	277.9		278.3		278.7		279.1		279.6
4.350% Senior Notes due February 15, 2025	448.9		448.8		448.8		448.7		448.6
2.400% Senior Notes due September 30, 2030	395.8		395.8		395.6		—		—

Long-term Debt Outstanding	$	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	$	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. Best		Moody’s		S&P		Fitch
As of Date of Financial Supplement
Kemper Debt Ratings:
Senior Unsecured Debt	BBB		Baa3		BBB		BBB
Insurance Company Financial Strength Ratings:
Trinity Universal Insurance Company	A		A3		A		A
United Insurance Company of America	A		A3		A-		A-
Reserve National Insurance Company	A		NR		NR		NR
Infinity Insurance Company	A		A3		A		NR

NR - Not Rated

Kemper Corporation

Segment Revenues

(Dollars in Millions)

(Unaudited)


	Three Months Ended
	Mar 31, 2021		Dec 31, 2020		Sep 30, 2020		Jun 30, 2020		Mar 31, 2020
Revenues:
Specialty Property & Casualty Insurance:
Earned Premiums:
Specialty Automobile	$	785.4	$	796.1	$	792.2	$	689.8	$	753.2
Commercial Automobile	92.2		86.3		79.2		69.2		69.3
Total Specialty Property & Casualty Insurance Earned Premiums	877.6		882.4		871.4		759.0		822.5
Net Investment Income	35.0		37.9		30.5		16.9		28.8
Change in Value of Alternative Energy Partnership Investments	(7.3)		—		—		—		—
Other Income	0.9		0.4		0.4		0.1		0.9
Total Specialty Property & Casualty Insurance Revenues	906.2		920.7		902.3		776.0		852.2
Preferred Property & Casualty Insurance:
Earned Premiums:
Preferred Automobile	103.0		107.1		110.6		99.1		114.9
Homeowners	50.8		53.3		55.0		55.6		56.8
Other Personal	8.4		8.8		8.9		8.9		9.2
Total Preferred Property & Casualty Insurance Earned Premiums	162.2		169.2		174.5		163.6		180.9
Net Investment Income	15.9		13.4		10.3		4.3		9.7
Change in Value of Alternative Energy Partnership Investments	(4.1)		—		—		—		—
Other Income	—		—		—		0.1		—
Total Preferred Property & Casualty Insurance Revenues	174.0		182.6		184.8		168.0		190.6
Life & Health Insurance:
Earned Premiums:
Life	98.1		96.5		96.3		95.7		97.2
Accident and Health	47.4		50.2		48.9		50.8		49.4
Property	15.5		15.7		15.4		16.2		16.4
Total Life & Health Insurance Earned Premiums	161.0		162.4		160.6		162.7		163.0
Net Investment Income	51.1		52.8		50.7		44.3		51.0
Change in Value of Alternative Energy Partnership Investments	(4.0)		—		—		—		—
Other Income	0.1		—		—		0.5		0.1
Total Life & Health Insurance Revenues	208.2		215.2		211.3		207.5		214.1
Total Segment Revenues	1,288.4		1,318.5		1,298.4		1,151.5		1,256.9
Income (Loss) from Change in Fair Value of Equity and Convertible Securities	52.2		73.1		45.2		71.6		(117.8)
Net Realized Gains on Sales of Investments	13.8		(0.1)		10.0		11.7		16.5
Impairment Losses	(4.0)		0.5		(1.0)		(7.0)		(12.0)
Other	1.6		0.1		1.1		3.1		85.4
Total Revenues	$	1,352.0	$	1,392.1	$	1,353.7	$	1,230.9	$	1,229.0

Kemper Corporation

Segment Operating Results

(Dollars in Millions)

(Unaudited)


	Three Months Ended
	Mar 31, 2021		Dec 31, 2020		Sep 30, 2020		Jun 30, 2020		Mar 31, 2020
Segment Operating Income (Loss):
Specialty Property & Casualty Insurance	$	85.2	$	111.5	$	149.9	$	84.5	$	75.0
Preferred Property & Casualty Insurance	3.0		19.8		(41.8)		0.8		23.0
Life & Health Insurance	(0.8)		9.6		15.2		19.9		26.5
Total Segment Operating Income (Loss)	87.4		140.9		123.3		105.2		124.5
Partial Satisfaction of Judgment	—		—		—		—		89.4
Other	(11.5)		(9.7)		(11.0)		(4.7)		(11.1)
Corporate and Other Operating Income (Loss)	(11.5)		(9.7)		(11.0)		(4.7)		78.3
Total Operating Income (Loss)	75.9		131.2		112.3		100.5		202.8
Income From:
Change in Fair Value of Equity and Convertible Securities	52.2		73.1		45.2		71.6		(117.8)
Net Realized Gains on Sales of Investments	13.8		(0.1)		10.0		11.7		16.5
Impairment Losses	(4.0)		0.5		(1.0)		(7.0)		(12.0)
Acquisition Related Transaction, Integration and Other Costs	(16.3)		(20.0)		(14.4)		(17.1)		(11.8)
Debt Extinguishment, Pension and Other Charges	—		(64.1)		—		—		—
Income before Income Taxes	$	121.6	$	120.6	$	152.1	$	159.7	$	77.7
Segment Net Operating Income (Loss):
Specialty Property & Casualty Insurance	$	80.1	$	91.1	$	119.2	$	67.5	$	60.1
Preferred Property & Casualty Insurance	9.6		16.9		(32.7)		0.9		18.4
Life & Health Insurance	7.3		9.4		12.2		16.1		22.3
Total Segment Net Operating Income (Loss)	97.0		117.4		98.7		84.5		100.8
Corporate and Other Net Operating Income (Loss) From:

Partial Satisfaction of Legal Judgment	—		—		—		—		70.6
Other	(9.8)		(11.6)		(7.8)		(5.3)		(8.5)
Corporate and Other Net Operating Income (Loss)	(9.8)		(11.6)		(7.8)		(5.3)		62.1
Adjusted Consolidated Net Operating Income (Loss)	87.2		105.8		90.9		79.2		162.9
Net Income (Loss) From:
Change in Fair Value of Equity and Convertible Securities	41.2		57.8		35.7		56.6		(93.1)
Net Realized Gains on Sales of Investments	10.9		(0.1)		7.9		9.3		13.0
Impairment Losses	(3.2)		0.4		(0.8)		(5.5)		(9.5)
Acquisition Related Transaction, Integration and Other Costs	(12.9)		(15.8)		(11.4)		(13.5)		(9.3)
Debt Extinguishment, Pension and Other Charges	—		(50.6)		—		—		—
Net Income	$	123.2	$	97.5	$	122.3	$	126.1	$	64.0

Kemper Corporation

Catastrophe Frequency and Severity

(Dollars in Millions)

(Unaudited)


	Three Months Ended March 31, 2021
	Specialty Property & Casualty Insurance Segment			Preferred Property & Casualty Insurance Segment			Life & Health Insurance Segment			Consolidated
	Number of Events	Losses and LAE		Number of Events	Losses and LAE		Number of Events	Losses and LAE		Number of Events	Losses and LAE
Range of Losses and LAE Per Event:
Below $5	9	$	1.7	11	$	8.9	8	$	1.9	12	$	11.4
$5 - $10	—	—		—	—		—	—		—	—
$10 - $15	—	—		—	—		—	—		—	—
$15 - $20	—	—		1	15.1		—	—		1	16.2
$20 - $25	—	—		—	—		—	—		—	—
Greater Than $25	—	—		—	—		—	—		—	—
Total	9	$	1.7	12	$	24.0	8	$	1.9	13	$	27.6

	Three Months Ended March 31, 2020
	Specialty Property & Casualty Insurance Segment			Preferred Property & Casualty Insurance Segment			Life & Health Insurance Segment			Consolidated
	Number of Events	Losses and LAE		Number of Events	Losses and LAE		Number of Events	Losses and LAE		Number of Events	Losses and LAE
Range of Losses and LAE Per Event:
Below $5	4	$	0.2	7	$	4.8	6	$	0.8	9	$	5.8
$5 - $10	—	—		—	—		—	—		—	—
$10 - $15	—	—		—	—		—	—		—	—
$15 - $20	—	—		—	—		—	—		—	—
$20 - $25	—	—		—	—		—	—		—	—
Greater Than $25	—	—		—	—		—	—		—	—
Total	4	$	0.2	7	$	4.8	6	$	0.8	9	$	5.8

Kemper Corporation

Specialty Property & Casualty Insurance Segment

Results of Operations and Selected Financial Information

(Dollars in Millions)

(Unaudited)


	Three Months Ended
	March 31, 2021			Dec 31, 2020			Sep 30, 2020			Jun 30, 2020			Mar 31, 2020
Results of Operations
Net Premiums Written	$	972.0		$	829.2		$	914.2		$	780.9		$	911.2

Total Specialty P&C
Specialty Personal Automobile	785.4			796.1			792.2			689.8			753.2
Commercial Automobile	92.2			86.3			79.2			69.2			69.3
Earned Premium	$	877.6		$	882.4		$	871.4		$	759.0		$	822.5

Net Investment Income	35.0			37.9			30.5			16.9			28.8
Change in Value of Alternative Energy Partnership Investments	(7.3)			—			—			—			—
Other Income	0.9			0.4			0.4			0.1			0.9
Total Revenues	906.2			920.7			902.3			776.0			852.2
Incurred Losses and LAE related to:
Current Year:
Non-catastrophe Losses and LAE	650.0			626.2			589.0			515.8			619.8
Catastrophe Losses and LAE	1.7			5.5			2.1			4.5			0.2
Prior Years:
Non-catastrophe Losses and LAE	(1.4)			(1.7)			1.9			9.6			5.3
Catastrophe Losses and LAE	0.4			0.1			(0.1)			—			0.2
Total Incurred Losses and LAE	650.7			630.1			592.9			529.9			625.5
Insurance Expenses	170.3			179.1			159.5			161.2			152.1
Other Expenses	—			—			—			0.4			(0.4)
Operating Income (Loss)	85.2			111.5			149.9			84.5			75.0
Income Tax Benefit (Expense)	(5.1)			(20.4)			(30.7)			(17.0)			(14.9)
Segment Net Operating Income (Loss)	$	80.1		$	91.1		$	119.2		$	67.5		$	60.1
Ratios Based On Earned Premiums
Current Year Non-catastrophe Losses and LAE Ratio	74.1		%	71.0		%	67.6		%	67.9		%	75.4		%
Current Year Catastrophe Losses and LAE Ratio	0.2			0.6			0.2			0.6			—
Prior Years Non-catastrophe Losses and LAE Ratio	(0.2)			(0.2)			0.2			1.3			0.6
Prior Years Catastrophe Losses and LAE Ratio	—			—			—			—			—
Total Incurred Loss and LAE Ratio	74.1			71.4			68.0			69.8			76.0
Insurance Expense Ratio	19.4			20.3			18.3			21.2			18.5
Combined Ratio	93.5		%	91.7		%	86.3		%	91.0		%	94.5		%
Underlying Combined Ratio 1
Current Year Non-catastrophe Losses and LAE Ratio	74.1		%	71.0		%	67.6		%	67.9		%	75.4		%
Insurance Expense Ratio	19.4			20.3			18.3			21.2			18.5
Underlying Combined Ratio	93.5		%	91.3		%	85.9		%	89.1		%	93.9		%
Non-GAAP Measure Reconciliation
Combined Ratio as Reported	93.5		%	91.7		%	86.3		%	91.0		%	94.5		%
Less:
Current Year Catastrophe Losses and LAE Ratio	0.2			0.6			0.2			0.6			—
Prior Years Non-catastrophe Losses and LAE Ratio	(0.2)			(0.2)			0.2			1.3			0.6
Prior Years Catastrophe Losses and LAE Ratio	—			—			—			—			—
Underlying Combined Ratio	93.5		%	91.3		%	85.9		%	89.1		%	93.9		%
1 Underlying Combined Ratio is a non-GAAP measure, which is computed as the difference between three operating ratios: the combined ratio, the effect of catastrophes (excluding development of prior-year catastrophes) on the combined ratio and the effect of prior-year reserve development at the reporting date (including development on prior-year catastrophes) on the combined ratio.

Kemper Corporation

Specialty Property & Casualty Insurance Segment

Results of Operations and Selected Financial Information (continued)

(Dollars in Millions)

(Unaudited)


	Mar 31, 2021		Dec 31, 2020		Sep 30, 2020		Jun 30, 2020		Mar 31, 2020
Insurance Reserves:
Non-Standard Automobile	$	1,304.7	$	1,308.3	$	1,271.9	$	1,252.6	$	1,326.3
Commercial Automobile	257.2		236.5		223.0		221.0		215.1
Insurance Reserves	$	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	$	799.7	$	744.6	$	718.8	$	667.9	$	716.0
Incurred but Not Reported	614.1		653.6		631.8		660.8		679.1
Total Loss Reserves	1,413.8		1,398.2		1,350.6		1,328.7		1,395.1
Unallocated LAE Reserves	148.1		146.6		144.3		144.9		146.3
Insurance Reserves	$	1,561.9	$	1,544.8	$	1,494.9	$	1,473.6	$	1,541.4

Kemper Corporation

Specialty Property & Casualty Insurance Segment

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

(Dollars in Millions)

(Unaudited)


	Three Months Ended
	Mar 31, 2021			Dec 31, 2020			Sep 30, 2020			Jun 30, 2020			Mar 31, 2020
Results of Operations
Net Premiums Written	$	861.5		$	736.3		$	819.4		$	700.5		$	830.3

Earned Premiums	$	785.4		$	796.1		$	792.2		$	689.8		$	753.2
Net Investment Income	29.1			32.4			26.2			15.2			24.8
Change in Value of Alternative Energy Partnership Investments	(5.8)			—			—			—			—
Other Income	0.9			0.4			0.4			0.1			0.8
Total Revenues	809.6			828.9			818.8			705.1			778.8
Incurred Losses and LAE related to:
Current Year:
Non-catastrophe Losses and LAE	586.4			569.1			543.4			472.4			576.0
Catastrophe Losses and LAE	1.6			5.2			2.0			4.2			0.2
Prior Years:
Non-catastrophe Losses and LAE	(4.4)			(3.1)			2.1			11.2			17.8
Catastrophe Losses and LAE	0.4			—			(0.1)			0.1			0.2
Total Incurred Losses and LAE	584.0			571.2			547.4			487.9			594.2
Insurance Expenses	155.3			162.8			145.6			146.7			139.2
Other Expenses	—			—			—			0.4			(0.4)
Operating Income (Loss)	70.3			94.9			125.8			70.1			45.8
Income Benefit (Expense)	(4.6)			(17.5)			(25.7)			(14.2)			(8.8)
Total Product Line Net Operating Income (Loss)	$	65.7		$	77.4		$	100.1		$	55.9		$	37.0
Ratios Based On Earned Premiums
Current Year Non-catastrophe Losses and LAE Ratio	74.7		%	71.4		%	68.5		%	68.5		%	76.5		%
Current Year Catastrophe Losses and LAE Ratio	0.2			0.7			0.3			0.6			—
Prior Years Non-catastrophe Losses and LAE Ratio	(0.6)			(0.4)			0.3			1.6			2.4
Prior Years Catastrophe Losses and LAE Ratio	0.1			—			—			—			—
Total Incurred Loss and LAE Ratio	74.4			71.7			69.1			70.7			78.9
Insurance Expense Ratio	19.8			20.4			18.4			21.3			18.5
Combined Ratio	94.2		%	92.1		%	87.5		%	92.0		%	97.4		%
Underlying Combined Ratio 1
Current Year Non-catastrophe Losses and LAE Ratio	74.7		%	71.4		%	68.5		%	68.5		%	76.5		%
Insurance Expense Ratio	19.8			20.4			18.4			21.3			18.5
Underlying Combined Ratio	94.5		%	91.8		%	86.9		%	89.8		%	95.0		%
Non-GAAP Measure Reconciliation
Combined Ratio	94.2		%	92.1		%	87.5		%	92.0		%	97.4		%
Less:
Current Year Catastrophe Losses and LAE Ratio	0.2			0.7			0.3			0.6			—
Prior Years Non-catastrophe Losses and LAE Ratio	(0.6)			(0.4)			0.3			1.6			2.4
Prior Years Catastrophe Losses and LAE Ratio	0.1			—			—			—			—
Underlying Combined Ratio	94.5		%	91.8		%	86.9		%	89.8		%	95.0		%

1 Underlying Combined Ratio is a non-GAAP measure, which is computed as the difference between three operating ratios: the combined ratio, the effect of catastrophes (excluding development of prior-year catastrophes) on the combined ratio and the effect of prior-year reserve development at the reporting date (including development on prior-year catastrophes) on the combined ratio.

Kemper Corporation

Specialty Property & Casualty Insurance Segment

Commercial Automobile Insurance - Results of Operations and Selected Financial Information

(Dollars in Millions)

(Unaudited)


	Three Months Ended
	Mar 31, 2021			Dec 31, 2020			Sep 30, 2020			Jun 30, 2020			Mar 31, 2020
Results of Operations
Net Premiums Written	$	110.5		$	92.9		$	94.8		$	80.4		$	80.9

Earned Premiums	$	92.2		$	86.3		$	79.2		$	69.2		$	69.3
Net Investment Income	5.9			5.5			4.3			1.7			4.0
Change in Value of Alternative Energy Partnership Investments	(1.5)			—			—			—			—
Other Income	—			—			—			—			0.1
Total Revenues	96.6			91.8			83.5			70.9			73.4
Incurred Losses and LAE related to:
Current Year:
Non-catastrophe Losses and LAE	63.6			57.1			45.6			43.4			43.8
Catastrophe Losses and LAE	0.1			0.3			0.1			0.3			—
Prior Years:
Non-catastrophe Losses and LAE	3.0			1.4			(0.2)			(1.6)			(12.5)
Catastrophe Losses and LAE	—			0.1			—			(0.1)			—
Total Incurred Losses and LAE	66.7			58.9			45.5			42.0			31.3
Insurance Expenses	15.0			16.3			13.9			14.5			12.9
Other Expenses	—			—			—			—			—
Operating Income (Loss)	14.9			16.6			24.1			14.4			29.2
Income Tax Benefit (Expense)	(0.5)			(2.9)			(5.0)			(2.8)			(6.1)
Total Product Line Net Operating Income (Loss)	$	14.4		$	13.7		$	19.1		$	11.6		$	23.1
Ratios Based On Earned Premiums
Current Year Non-catastrophe Losses and LAE Ratio	68.9		%	66.3		%	57.6		%	62.7		%	63.2		%
Current Year Catastrophe Losses and LAE Ratio	0.1			0.3			0.1			0.4			—
Prior Years Non-catastrophe Losses and LAE Ratio	3.3			1.6			(0.3)			(2.3)			(18.0)
Prior Years Catastrophe Losses and LAE Ratio	—			0.1			—			(0.1)			—
Total Incurred Loss and LAE Ratio	72.3			68.3			57.4			60.7			45.2
Insurance Expense Ratio	16.3			18.9			17.6			21.0			18.6
Combined Ratio	88.6		%	87.2		%	75.0		%	81.7		%	63.8		%
Underlying Combined Ratio 1
Current Year Non-catastrophe Losses and LAE Ratio	68.9		%	66.3		%	57.6		%	62.7		%	63.2		%
Insurance Expense Ratio	16.3			18.9			17.6			21.0			18.6
Underlying Combined Ratio	85.2		%	85.2		%	75.2		%	83.7		%	81.8		%
Non-GAAP Measure Reconciliation
Combined Ratio	88.6		%	87.2		%	75.0		%	81.7		%	63.8		%
Less:
Current Year Catastrophe Losses and LAE Ratio	0.1			0.3			0.1			0.4			—
Prior Years Non-catastrophe Losses and LAE Ratio	3.3			1.6			(0.3)			(2.3)			(18.0)
Prior Years Catastrophe Losses and LAE Ratio	—			0.1			—			(0.1)			—
Underlying Combined Ratio	85.2		%	85.2		%	75.2		%	83.7		%	81.8		%

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.

Kemper Corporation

Preferred Property & Casualty Insurance Segment

Results of Operations and Selected Financial Information

(Dollars in Millions)

(Unaudited)


	Three Months Ended
	Mar 31, 2021			Dec 31, 2020			Sep 30, 2020			Jun 30, 2020			Mar 31, 2020
Results of Operations
Net Premiums Written	$	154.4		$	155.2		$	172.2		$	161.5		$	164.1







Earned Premiums	$	162.2		$	169.2		$	174.5		$	163.6		$	180.9
Net Investment Income	15.9			13.4			10.3			4.3			9.7
Change in Value of Alternative Energy Partnership Investments	(4.1)			—			—			—			—
Other Income	—			—			—			0.1			—
Total Revenues	174.0			182.6			184.8			168.0			190.6
Incurred Losses and LAE related to:
Current Year:
Non-catastrophe Losses and LAE	96.2			107.1			102.8			82.5			108.5
Catastrophe Losses and LAE	24.0			(5.3)			61.9			20.6			4.8
Prior Years:
Non-catastrophe Losses and LAE	0.1			9.5			6.3			8.2			(3.3)
Catastrophe Losses and LAE	(0.3)			0.1			0.1			0.4			(1.1)
Total Incurred Losses and LAE	120.0			111.4			171.1			111.7			108.9
Insurance Expenses	51.0			51.4			55.5			55.5			58.7
Other Expenses	—			—			—			—			—
Operating Income (Loss)	3.0			19.8			(41.8)			0.8			23.0
Income Tax Benefit (Expense)	6.6			(2.9)			9.1			0.1			(4.6)
Segment Net Operating Income (Loss)	$	9.6		$	16.9		$	(32.7)		$	0.9		$	18.4
Ratios Based On Earned Premiums
Current Year Non-catastrophe Losses and LAE Ratio	59.3		%	63.2		%	58.9		%	50.5		%	59.9		%
Current Year Catastrophe Losses and LAE Ratio	14.8			(3.1)			35.5			12.6			2.7
Prior Years Non-catastrophe Losses and LAE Ratio	0.1			5.6			3.6			5.0			(1.8)
Prior Years Catastrophe Losses and LAE Ratio	(0.2)			0.1			0.1			0.2			(0.6)
Total Incurred Loss and LAE Ratio	74.0			65.8			98.1			68.3			60.2
Insurance Expense Ratio	31.4			30.4			31.8			33.9			32.4

Combined Ratio	105.4		%	96.2		%	129.9		%	102.2		%	92.6		%
Underlying Combined Ratio 1
Current Year Non-catastrophe Losses and LAE Ratio	59.3		%	63.2		%	58.9		%	50.5		%	59.9		%
Insurance Expense Ratio	31.4			30.4			31.8			33.9			32.4

Underlying Combined Ratio	90.7		%	93.6		%	90.7		%	84.4		%	92.3		%
Non-GAAP Measure Reconciliation
Combined Ratio as Reported	105.4		%	96.2		%	129.9		%	102.2		%	92.6		%
Less:
Current Year Catastrophe Losses and LAE Ratio	14.8			(3.1)			35.5			12.6			2.7
Prior Years Non-catastrophe Losses and LAE Ratio	0.1			5.6			3.6			5.0			(1.8)
Prior Years Catastrophe Losses and LAE Ratio	(0.2)			0.1			0.1			0.2			(0.6)
Underlying Combined Ratio	90.7		%	93.6		%	90.7		%	84.4		%	92.3		%


1 Underlying Combined Ratio is a non-GAAP measure, which is computed as the difference between three operating ratios: the combined ratio, the effect of catastrophes (excluding development of prior-year catastrophes) on the combined ratio and the effect of prior-year reserve development at the reporting date (including development on prior-year catastrophes) on the combined ratio.

Kemper Corporation

Preferred Property & Casualty Insurance Segment

Results of Operations and Selected Financial Information (continued)

(Dollars in Millions)

(Unaudited)


	Mar 31, 2021		Dec 31, 2020		Sep 30, 2020		Jun 30, 2020		Mar 31, 2020
Insurance Reserves:
Preferred Automobile	$	275.9	$	281.3	$	265.2	$	252.8	$	254.8
Homeowners	107.6		104.0		137.9		99.5		90.8
Other Personal	30.7		26.3		25.5		25.7		28.8
Insurance Reserves	$	414.2	$	411.6	$	428.6	$	378.0	$	374.4
Insurance Reserves:
Loss and Allocated LAE Reserves:
Case and Allocated LAE	$	282.0	$	262.2	$	266.8	$	230.7	$	231.1
Incurred but Not Reported	105.6		122.0		134.2		119.6		115.1
Total Loss Reserves	387.6		384.2		401.0		350.3		346.2
Unallocated LAE Reserves	26.6		27.4		27.6		27.7		28.2
Insurance Reserves	$	414.2	$	411.6	$	428.6	$	378.0	$	374.4

Kemper Corporation

Preferred Property & Casualty Insurance Segment

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

(Dollars in Millions)

(Unaudited)


	Three Months Ended
	Mar 31, 2021			Dec 31, 2020			Sep 30, 2020			Jun 30, 2020			Mar 31, 2020
Results of Operations
Net Premiums Written	$	100.4		$	98.8		$	107.2		$	95.6		$	105.9

Earned Premiums	$	103.0		$	107.1		$	110.6		$	99.1		$	114.9
Net Investment Income	7.3			7.9			6.1			2.5			5.8
Change in Value of Alternative Energy Partnership Investments	(1.9)			—			—			—			—
Other Income	—			—			—			0.1			—
Total Revenues	108.4			115.0			116.7			101.7			120.7
Incurred Losses and LAE related to:
Current Year:
Non-catastrophe Losses and LAE	67.8			78.0			72.2			53.8			75.9
Catastrophe Losses and LAE	0.6			0.4			1.8			2.0			0.2
Prior Years:
Non-catastrophe Losses and LAE	1.2			9.9			5.9			9.7			2.2
Catastrophe Losses and LAE	0.1			(0.4)			(0.2)			(0.3)			(0.1)
Total Incurred Losses and LAE	69.7			87.9			79.7			65.2			78.2
Insurance Expenses	32.8			32.3			34.7			34.0			36.1

Operating Income (Loss)	5.9			(5.2)			2.3			2.5			6.4
Income Tax Benefit (Expense)	2.1			1.9			(0.3)			(0.4)			(1.2)
Total Product Line Net Operating Income (Loss)	$	8.0		$	(3.3)		$	2.0		$	2.1		$	5.2
Ratios Based On Earned Premiums
Current Year Non-catastrophe Losses and LAE Ratio	65.8		%	72.9		%	65.4		%	54.3		%	66.1		%
Current Year Catastrophe Losses and LAE Ratio	0.6			0.4			1.6			2.0			0.2
Prior Years Non-catastrophe Losses and LAE Ratio	1.2			9.2			5.3			9.8			1.9
Prior Years Catastrophe Losses and LAE Ratio	0.1			(0.4)			(0.2)			(0.3)			(0.1)
Total Incurred Loss and LAE Ratio	67.7			82.1			72.1			65.8			68.1
Insurance Expense Ratio	31.8			30.2			31.4			34.3			31.4
Combined Ratio	99.5		%	112.3		%	103.5		%	100.1		%	99.5		%
Underlying Combined Ratio 1
Current Year Non-catastrophe Losses and LAE Ratio	65.8		%	72.9		%	65.4		%	54.3		%	66.1		%
Insurance Expense Ratio	31.8			30.2			31.4			34.3			31.4
Underlying Combined Ratio	97.6		%	103.1		%	96.8		%	88.6		%	97.5		%
Non-GAAP Measure Reconciliation
Combined Ratio	99.5		%	112.3		%	103.5		%	100.1		%	99.5		%
Less:
Current Year Catastrophe Losses and LAE Ratio	0.6			0.4			1.6			2.0			0.2
Prior Years Non-catastrophe Losses and LAE Ratio	1.2			9.2			5.3			9.8			1.9
Prior Years Catastrophe Losses and LAE Ratio	0.1			(0.4)			(0.2)			(0.3)			(0.1)
Underlying Combined Ratio	97.6		%	103.1		%	96.8		%	88.6		%	97.5		%

1 Underlying Combined Ratio is a non-GAAP measure, which is computed as the difference between three operating ratios: the combined ratio, the effect of catastrophes (excluding development of prior-year catastrophes) on the combined ratio and the effect of prior-year reserve development at the reporting date (including development on prior-year catastrophes) on the combined ratio.

Kemper Corporation

Preferred Property & Casualty Insurance Segment

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

(Dollars in Millions)

(Unaudited)


	Three Months Ended
	Mar 31, 2021			Dec 31, 2020			Sep 30, 2020			Jun 30, 2020			Mar 31, 2020
Results of Operations
Net Premiums Written	$	54.0		$	56.4		$	65.0		$	65.9		$	58.2

Earned Premiums	$	59.2		$	62.1		$	63.9		$	64.5		$	66.0
Net Investment Income	8.6			5.5			4.2			1.8			3.9
Change in Value of Alternative Energy Partnership Investments	(2.2)			—			—			—			—
Total Revenues	65.6			67.6			68.1			66.3			69.9
Incurred Losses and LAE related to:
Current Year:
Non-catastrophe Losses and LAE	28.4			29.1			30.6			28.7			32.6
Catastrophe Losses and LAE	23.4			(5.7)			60.1			18.6			4.6
Prior Years:
Non-catastrophe Losses and LAE	(1.1)			(0.4)			0.4			(1.5)			(5.5)
Catastrophe Losses and LAE	(0.4)			0.5			0.3			0.7			(1.0)
Total Incurred Losses and LAE	50.3			23.5			91.4			46.5			30.7
Insurance Expenses	18.2			19.1			20.8			21.5			22.6
Operating Income (Loss)	(2.9)			25.0			(44.1)			(1.7)			16.6
Income Tax Benefit (Expense)	4.5			(4.8)			9.4			0.5			(3.4)
Total Product Line Net Operating Income (Loss)	$	1.6		$	20.2		$	(34.7)		$	(1.2)		$	13.2
Ratios Based On Earned Premiums
Current Year Non-catastrophe Losses and LAE Ratio	48.1		%	46.8		%	47.8		%	44.5		%	49.3		%
Current Year Catastrophe Losses and LAE Ratio	39.5			(9.2)			94.1			28.8			7.0
Prior Years Non-catastrophe Losses and LAE Ratio	(1.9)			(0.6)			0.6			(2.3)			(8.3)
Prior Years Catastrophe Losses and LAE Ratio	(0.7)			0.8			0.5			1.1			(1.5)
Total Incurred Loss and LAE Ratio	85.0			37.8			143.0			72.1			46.5
Insurance Expense Ratio	30.7			30.8			32.6			33.3			34.2
Combined Ratio	115.7		%	68.6		%	175.6		%	105.4		%	80.7		%
Underlying Combined Ratio 1
Current Year Non-catastrophe Losses and LAE Ratio	48.1		%	46.8		%	47.8		%	44.5		%	49.3		%
Insurance Expense Ratio	30.7			30.8			32.6			33.3			34.2
Underlying Combined Ratio	78.8		%	77.6		%	80.4		%	77.8		%	83.5		%
Non-GAAP Measure Reconciliation
Combined Ratio	115.7		%	68.6		%	175.6		%	105.4		%	80.7		%
Less:
Current Year Catastrophe Losses and LAE Ratio	39.5			(9.2)			94.1			28.8			7.0
Prior Years Non-catastrophe Losses and LAE Ratio	(1.9)			(0.6)			0.6			(2.3)			(8.3)
Prior Years Catastrophe Losses and LAE Ratio	(0.7)			0.8			0.5			1.1			(1.5)
Underlying Combined Ratio	78.8		%	77.6		%	80.4		%	77.8		%	83.5		%

1Underlying Combined Ratio is a non-GAAP measure, which is computed as the difference between three operating ratios: the combined ratio, the effect of catastrophes (excluding development of prior-year catastrophes) on the combined ratio and the effect of prior-year reserve development at the reporting date (including development on prior-year catastrophes) on the combined ratio.

Kemper Corporation

Preferred Property & Casualty Insurance Segment

Homeowners Insurance - Results of Operations and Selected Financial Information

(Dollars in Millions)

(Unaudited)


	Three Months Ended
	Mar 31, 2021			Dec 31, 2020			Sep 30, 2020			Jun 30, 2020			Mar 31, 2020
Results of Operations
Net Premiums Written	$	46.1		$	48.3		$	55.7		$	57.2		$	49.9

Earned Premiums	$	50.8		$	53.3		$	55.0		$	55.6		$	56.8
Net Investment Income	7.8			5.0			3.8			1.6			3.6
Change in Value of Alternative Energy Partnership Investments	(2.0)			—			—			—			—
Total Revenues	56.6			58.3			58.8			57.2			60.4
Incurred Losses and LAE related to:
Current Year:
Non-catastrophe Losses and LAE	24.2			26.5			28.1			25.4			28.7
Catastrophe Losses and LAE	22.0			(10.1)			58.6			18.2			4.5
Prior Years:
Non-catastrophe Losses and LAE	(2.5)			0.3			2.0			(0.8)			(4.3)
Catastrophe Losses and LAE	(0.1)			0.6			0.2			0.6			(0.7)
Total Incurred Losses and LAE	43.6			17.3			88.9			43.4			28.2
Insurance Expenses	15.7			16.6			18.2			18.6			19.5

Operating Income (Loss)	(2.7)			24.4			(48.3)			(4.8)			12.7
Income Tax Benefit (Expense)	4.1			(4.7)			10.3			1.1			(2.6)
Total Product Line Net Operating Income (Loss)	$	1.4		$	19.7		$	(38.0)		$	(3.7)		$	10.1
Ratios Based On Earned Premiums
Current Year Non-catastrophe Losses and LAE Ratio	47.6		%	49.7		%	51.1		%	45.7		%	50.5		%
Current Year Catastrophe Losses and LAE Ratio	43.3			(18.9)			106.5			32.7			7.9
Prior Years Non-catastrophe Losses and LAE Ratio	(4.9)			0.6			3.6			(1.4)			(7.6)
Prior Years Catastrophe Losses and LAE Ratio	(0.2)			1.1			0.4			1.1			(1.2)
Total Incurred Loss and LAE Ratio	85.8			32.5			161.6			78.1			49.6
Insurance Expense Ratio	30.9			31.1			33.1			33.5			34.3
Combined Ratio	116.7		%	63.6		%	194.7		%	111.6		%	83.9		%
Underlying Combined Ratio 1
Current Year Non-catastrophe Losses and LAE Ratio	47.6		%	49.7		%	51.1		%	45.7		%	50.5		%
Insurance Expense Ratio	30.9			31.1			33.1			33.5			34.3
Underlying Combined Ratio	78.5		%	80.8		%	84.2		%	79.2		%	84.8		%
Non-GAAP Measure Reconciliation
Combined Ratio	116.7		%	63.6		%	194.7		%	111.6		%	83.9		%
Less:
Current Year Catastrophe Losses and LAE Ratio	43.3			(18.9)			106.5			32.7			7.9
Prior Years Non-catastrophe Losses and LAE Ratio	(4.9)			0.6			3.6			(1.4)			(7.6)
Prior Years Catastrophe Losses and LAE Ratio	(0.2)			1.1			0.4			1.1			(1.2)
Underlying Combined Ratio	78.5		%	80.8		%	84.2		%	79.2		%	84.8		%
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.

Kemper Corporation

Preferred Property & Casualty Insurance Segment

Other Personal Insurance - Results of Operations and Selected Financial Information

(Dollars in Millions)

(Unaudited)


	Three Months Ended
	Mar 31, 2021			Dec 31, 2020			Sep 30, 2020			Jun 30, 2020			Mar 31, 2020
Results of Operations
Net Premiums Written	$	7.9		$	8.1		$	9.3		$	8.7		$	8.3

Earned Premiums	$	8.4		$	8.8		$	8.9		$	8.9		$	9.2
Net Investment Income	0.8			0.5			0.4			0.2			0.3
Change in Value of Alternative Energy Partnership Investments	(0.2)			—			—			—			—
Total Revenues	9.0			9.3			9.3			9.1			9.5
Incurred Losses and LAE related to:
Current Year:
Non-catastrophe Losses and LAE	4.2			2.6			2.5			3.3			3.9
Catastrophe Losses and LAE	1.4			4.4			1.5			0.4			0.1
Prior Years:
Non-catastrophe Losses and LAE	1.4			(0.7)			(1.6)			(0.7)			(1.2)
Catastrophe Losses and LAE	(0.3)			(0.1)			0.1			0.1			(0.3)
Total Incurred Losses and LAE	6.7			6.2			2.5			3.1			2.5
Insurance Expenses	2.5			2.5			2.6			2.9			3.1
Operating Income (Loss)	(0.2)			0.6			4.2			3.1			3.9
Income Tax Benefit (Expense)	0.4			(0.1)			(0.9)			(0.6)			(0.8)
Total Product Line Net Operating Income (Loss)	$	0.2		$	0.5		$	3.3		$	2.5		$	3.1
Ratios Based On Earned Premiums
Current Year Non-catastrophe Losses and LAE Ratio	50.0		%	29.6		%	28.1		%	37.1		%	42.4		%
Current Year Catastrophe Losses and LAE Ratio	16.7			50.0			16.9			4.5			1.1
Prior Years Non-catastrophe Losses and LAE Ratio	16.7			(8.0)			(18.0)			(7.9)			(13.0)
Prior Years Catastrophe Losses and LAE Ratio	(3.6)			(1.1)			1.1			1.1			(3.3)
Total Incurred Loss and LAE Ratio	79.8			70.5			28.1			34.8			27.2
Insurance Expense Ratio	29.8			28.4			29.2			32.6			33.7
Combined Ratio	109.6		%	98.9		%	57.3		%	67.4		%	60.9		%
Underlying Combined Ratio 1
Current Year Non-catastrophe Losses and LAE Ratio	50.0		%	29.6		%	28.1		%	37.1		%	42.4		%
Insurance Expense Ratio	29.8			28.4			29.2			32.6			33.7
Underlying Combined Ratio	79.8		%	58.0		%	57.3		%	69.7		%	76.1		%
Non-GAAP Measure Reconciliation
Combined Ratio	109.6		%	98.9		%	57.3		%	67.4		%	60.9		%
Less:
Current Year Catastrophe Losses and LAE Ratio	16.7			50.0			16.9			4.5			1.1
Prior Years Non-catastrophe Losses and LAE Ratio	16.7			(8.0)			(18.0)			(7.9)			(13.0)
Prior Years Catastrophe Losses and LAE Ratio	(3.6)			(1.1)			1.1			1.1			(3.3)
Underlying Combined Ratio	79.8		%	58.0		%	57.3		%	69.7		%	76.1		%
1 Underlying Combined Ratio is a non-GAAP measure, which is computed as the difference between three operating ratios: the combined ratio, the effect of catastrophes (excluding development of prior-year catastrophes) on the combined ratio and the effect of prior-year reserve development at the reporting date (including development on prior-year catastrophes) on the combined ratio.

Kemper Corporation

Life & Health Insurance Segment

Results of Operations and Selected Financial Information

(Dollars in Millions)

(Unaudited)


	Three Months Ended
	Mar 31, 2021		Dec 31, 2020		Sep 30, 2020		Jun 30, 2020		Mar 31, 2020
Results of Operations




Earned Premiums	$	161.0	$	162.4	$	160.6	$	162.7	$	163.0
Net Investment Income	51.1		52.8		50.7		44.3		51.0
Change in Value of Alternative Energy Partnership Investments	(4.0)		—		—		—		—
Other Income	0.1		—		—		0.5		0.1
Total Revenues	208.2		215.2		211.3		207.5		214.1
Policyholders’ Benefits and Incurred Losses and LAE	118.7		121.8		113.6		105.9		100.7
Insurance Expenses	90.3		83.8		82.5		81.7		86.9

Operating Income (Loss)	(0.8)		9.6		15.2		19.9		26.5
Income Tax Benefit (Expense)	8.1		(0.2)		(3.0)		(3.8)		(4.2)
Segment Net Operating Income (Loss)	$	7.3	$	9.4	$	12.2	$	16.1	$	22.3


	Mar 31, 2021		Dec 31, 2020		Sep 30, 2020		Jun 30, 2020		Mar 31, 2020
Insurance Reserves:
Future Policyholder Benefits	$	3,448.0	$	3,440.5	$	3,426.4	$	3,407.0	$	3,397.1
Incurred Losses and LAE Reserves:
Life	68.1		61.1		59.0		61.6		75.5
Accident and Health	25.5		25.9		26.1		29.1		28.2
Property	5.4		4.6		5.1		3.8		3.1
Total Incurred Losses and LAE Reserves	99.0		91.6		90.2		94.5		106.8
Insurance Reserves	$	3,547.0	$	3,532.1	$	3,516.6	$	3,501.5	$	3,503.9

Kemper Corporation

Life & Health Insurance Segment

Life Insurance - Results of Operations and Selected Financial Information

(Dollars in Millions)

(Unaudited)


	Three Months Ended
	Mar 31, 2021		Dec 31, 2020		Sep 30, 2020		Jun 30, 2020		Mar 31, 2020
Results of Operations
Earned Premiums	$	98.1	$	96.5	$	96.3	$	95.7	$	97.2
Net Investment Income	49.6		52.3		47.5		44.8		48.7
Change in Value of Alternative Energy Partnership Investments	(3.8)		—		—		—		—
Other Income	—		(0.1)		—		0.1		—
Total Revenues	143.9		148.7		143.8		140.6		145.9
Policyholders’ Benefits and Incurred Losses and LAE	87.9		$	89.4	84.0		76.7		68.1
Insurance Expenses	58.0		52.9		54.7		50.9		60.3

Operating Income (Loss)	(2.0)		6.4		5.1		13.0		17.5
Income Tax Benefit (Expense)	8.0		0.3		(0.8)		(2.4)		(2.3)
Total Product Line Operating Income (Loss)	$	6.0	$	6.7	$	4.3	$	10.6	$	15.2

Kemper Corporation

Life & Health Insurance Segment

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

(Dollars in Millions)

(Unaudited)


	Three Months Ended
	Mar 31, 2021		Dec 31, 2020		Sep 30, 2020		Jun 30, 2020		Mar 31, 2020
Results of Operations
Earned Premiums	$	47.4	$	50.2	$	48.9	$	50.8	$	49.4
Net Investment Income	1.0		0.3		3.1		(0.4)		2.0
Change in Value of Alternative Energy Partnership Investments	(0.1)		—		—		—		—
Other Income	0.1		0.1		—		0.4		0.1
Total Revenues	48.4		50.6		52.0		50.8		51.5
Policyholders’ Benefits and Incurred Losses and LAE	24.5		24.5		20.7		22.0		28.1
Insurance Expenses	24.4		25.1		22.1		24.6		20.1
Operating Income (Loss)	(0.5)		1.0		9.2		4.2		3.3
Income Tax Benefit (Expense)	0.2		—		(2.0)		(0.9)		(0.7)
Total Product Line Net Operating Income (Loss)	$	(0.3)	$	1.0	$	7.2	$	3.3	$	2.6

Kemper Corporation

Life & Health Insurance Segment

Property Insurance - Results of Operations and Selected Financial Information

(Dollars in Millions)

(Unaudited)


	Three Months Ended
		Mar 31, 2021			Dec 31, 2020			Sep 30, 2020			Jun 30, 2020			Mar 31, 2020
Results of Operations
Earned Premiums		$	15.5		$	15.7		$	15.4		$	16.2		$	16.4
Net Investment Income		0.5			0.2			0.1			(0.1)			0.3
Change in Value of Alternative Energy Partnership Investments		(0.1)			—			—			—			—

Total Revenues		15.9			15.9			15.5			16.1			16.7
Incurred Losses and LAE related to:
Current Year:
Non-catastrophe Losses and LAE		3.2			2.5			5.2			3.5			4.0
Catastrophe Losses and LAE		1.9			5.3			3.1			3.2			0.8
Prior Years:
Non-catastrophe Losses and LAE		0.7			0.1			0.4			0.3			(0.4)
Catastrophe Losses and LAE		0.5			—			0.2			0.2			0.1
Total Incurred Losses and LAE		6.3			7.9			8.9			7.2			4.5
Insurance Expenses		7.9			5.8			5.7			6.2			6.5
Operating Income (Loss)		1.7			2.2			0.9			2.7			5.7
Income Tax Benefit (Expense)		(0.1)			(0.5)			(0.2)			(0.5)			(1.2)
Total Product Line Net Operating Income (Loss)		$	1.6		$	1.7		$	0.7		$	2.2		$	4.5
Ratios Based On Earned Premiums
Current Year Non-catastrophe Losses and LAE Ratio		20.6		%	15.9		%	33.8		%	21.5		%	24.3		%
Current Year Catastrophe Losses and LAE Ratio		12.3			33.8			20.1			19.8			4.9
Prior Years Non-catastrophe Losses and LAE Ratio		4.5			0.6			2.6			1.9			(2.4)
Prior Years Catastrophe Losses and LAE Ratio		3.2			—			1.3			1.2			0.6
Total Incurred Loss and LAE Ratio		40.6			50.3			57.8			44.4			27.4
Insurance Expense Ratio		51.0			36.9			37.0			38.3			39.6
Combined Ratio		91.6		%	87.2		%	94.8		%	82.7		%	67.0		%
Underlying Combined Ratio 1
Current Year Non-catastrophe Losses and LAE Ratio		20.6		%	15.9		%	33.8		%	21.5		%	24.3		%
Insurance Expense Ratio		51.0			36.9			37.0			38.3			39.6
Underlying Combined Ratio		71.6		%	52.8		%	70.8		%	59.8		%	63.9		%
Non-GAAP Measure Reconciliation
Combined Ratio		91.6		%	87.2		%	94.8		%	82.7		%	67.0		%
Less:
Current Year Catastrophe Losses and LAE Ratio		12.3			33.8			20.1			19.8			4.9
Prior Years Non-catastrophe Losses and LAE Ratio		4.5			0.6			2.6			1.9			(2.4)
Prior Years Catastrophe Losses and LAE Ratio		3.2			—			1.3			1.2			0.6
Underlying Combined Ratio		71.6		%	52.8		%	70.8		%	59.8		%	63.9		%

1 Underlying Combined Ratio is a non-GAAP measure, which is computed as the difference between three operating ratios: the combined ratio, the effect of catastrophes (excluding development of prior-year catastrophes) on the combined ratio and the effect of prior-year reserve development at the reporting date (including development on prior-year catastrophes) on the combined ratio.

Kemper Corporation

Expenses

(Dollars in Millions)


	Three Months Ended
		Mar 31, 2021		Dec 31, 2020		Sep 30, 2020		Jun 30, 2020		Mar 31, 2020
Insurance Expenses:
Commissions		$	195.2	$	183.3	$	195.5	$	178.2	$	188.8
General Expenses		84.6		83.1		74.6		79.2		70.5
Premium Taxes		25.4		23.0		23.3		23.1		24.8
Total Costs Incurred		305.2		289.4		293.4		280.5		284.1



Net Policy Acquisition Costs Deferred		(22.4)		(11.1)		(17.4)		(9.3)		(13.8)
Amortization of Valuation of Business Acquired ("VOBA")		0.9		1.0		0.9		1.5		1.3

Insurance Expenses		283.7		279.3		276.9		272.7		271.6
Loss from Early Extinguishment of Debt		—		—		—		—		—
Interest and Other Expenses:
Interest Expense		11.1		11.3		8.3		8.9		7.5
Other Expenses:
Acquisition Related Transaction, Integration and Other Costs		16.3		20.0		14.4		17.1		11.8
Pension Settlement Expense		—		64.1		—		—		—
Other		29.8		33.4		24.5		25.0		25.2
Other Expenses		46.1		117.5		38.9		42.1		37.0
Interest and Other Expenses		57.2		128.8		47.2		51.0		44.5
Total Expenses		$	340.9	$	408.1	$	324.1	$	323.7	$	316.1

Kemper Corporation

Details of Investment Performance

(Dollars in Millions)


	Three Months Ended
	Mar 31, 2021		Dec 31, 2020		Sep 30, 2020		Jun 30, 2020		Mar 31, 2020
Net Investment Income
Interest on Fixed Income Securities	$	69.0	$	71.8	$	72.7	$	74.3	$	71.0
Dividends on Equity Securities Excluding Alternative Investments	2.1		4.7		2.8		3.6		4.3
Alternative Investments:
Equity Method Limited Liability Investments	22.5		7.6		8.2		(12.7)		1.8

Limited Liability Investments Included in Equity Securities	4.5		14.8		2.4		1.1		3.8
Total Alternative Investments	27.0		22.4		10.6		(11.6)		5.6
Short-term Investments	1.2		1.3		2.3		0.3		1.6
Loans to Policyholders	5.5		5.5		5.5		5.5		5.6
Real Estate	2.4		2.5		2.3		2.3		2.5
Other	4.7		3.9		2.7		2.4		4.2
Total Investment Income	111.9		112.1		98.9		76.8		94.8
Investment Expenses:
Real Estate	2.1		2.3		1.2		2.7		2.6
Other Investment Expenses	6.7		7.1		5.6		6.3		6.6
Total Investment Expenses	8.8		9.4		6.8		9.0		9.2
Net Investment Income	$	103.1	$	102.7	$	92.1	$	67.8	$	85.6
Net Realized Gains (Losses) on Sales of Investments
Fixed Maturities:
Gains on Sales	$	13.2	$	1.9	$	11.9	$	10.9	$	15.9
Losses on Sales	(1.1)		(4.4)		(1.9)		(0.5)		(1.1)
Equity Securities:
Gains on Sales	1.7		4.4		0.1		0.1		1.3
Losses on Sales	—		(1.7)		—		—		(0.2)
Equity Method Limited Liability Investments:
Losses on Sales	—		(0.3)		(0.1)		—		—
Real Estate:
Gains on Sales	—		—		—		1.2		0.6






Net Realized Gains on Sales of Investments	$	13.8	$	(0.1)	$	10.0	$	11.7	$	16.5
Net Impairment Losses Recognized in Earnings
Fixed Maturities	$	(3.2)	$	1.3	$	(1.0)	$	(7.0)	$	(10.0)
Equity Securities	(0.8)		(0.8)		—		—		(2.0)

Net Impairment Losses Recognized in Earnings	$	(4.0)	$	0.5	$	(1.0)	$	(7.0)	$	(12.0)

Kemper Corporation

Details of Invested Assets

(Dollars in Millions)

(Unaudited)


	Mar 31, 2021				Dec 31, 2020				Dec 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	$	532.4	5.4	%	$	585.3	5.6	%	$	815.9	8.8	%
States and Political Subdivisions	1,667.9		17.0		1,589.5		15.2		1,515.8		16.4
Foreign Governments	4.8		—		5.2		—		16.8		0.2
Corporate Securities:
Bonds and Notes	4,270.8		43.5		4,425.4		42.5		3,859.7		41.7
Redeemable Preferred Stocks	7.0		0.1		7.5		0.1		6.7		0.1
Collateralized Loan Obligations	782.9		8.0		767.7		7.4		618.2		6.7
Other Mortgage- and Asset-backed	213.6		2.2		225.3		2.2		89.0		1.0
Total Fixed Maturities Reported at Fair Value	7,479.4		76.2		7,605.9		73.0		6,922.1		74.7
Equity Securities Reported at Fair Value:
Preferred Stocks	54.6		0.6		59.1		0.6		59.2		0.6


Common Stocks	11.4		0.1		10.8		0.1		13.2		0.1
Other Equity Interests:
Exchange Traded Funds	522.4		5.3		496.6		4.8		586.8		6.3
Limited Liability Companies and Limited Partnerships	308.9		3.1		292.0		2.8		248.1		2.7
Total Equity Securities Reported at Fair Value	897.3		9.1		858.5		8.2		907.3		9.8
Equity Securities Reported at Modified Cost:
Preferred Stocks	8.1		0.1		8.1		0.1		9.1		0.1
Common Stocks	16.3		0.2		16.3		0.2		12.3		0.1
Limited Liability Companies and Limited Partnerships	11.6		0.1		15.7		0.2		20.5		0.2
Total Equity Securities Reported at Modified Cost	36.0		0.4		40.1		0.5		41.9		0.4
Convertible Securities at Fair Value	42.6		0.4		39.9		0.4		37.3		0.4
Equity Method Limited Liability Investments	219.2		2.2		204.0		2.0		220.4		2.4
Alternative Energy Partnership Investments	54.4		0.6		21.3		0.2		—		—

Short-term Investments at Cost which Approximates Fair Value	196.9		2.0		875.4		8.4		470.9		5.1
Other Investments:
Company Owned Life Insurance	429.5		4.4		327.4		3.1		217.0		2.3
Loans to Policyholders at Unpaid Principal	295.1		3.0		297.9		2.9		305.6		3.3
Real Estate at Depreciated Cost	98.0		1.0		98.7		0.9		111.4		1.2
Mortgage Loans	73.2		0.7		54.6		0.5		27.5		0.3

Other	1.0		—		0.4		—		—		—
Total Other Investments	896.8		9.1		779.0		7.4		661.5		7.1
Total Investments	$	9,822.6	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.

Kemper Corporation

Details of Invested Assets (continued)

(Dollars in Millions)

(Unaudited)


	Mar 31, 2021				Dec 31, 2020				Dec 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	$	4,742.9	63.3	%	$	4,759.9	62.6	%	$	4,387.1	63.4	%
BBB	2,286.7		30.6		2,355.6		31.0		2,044.1		29.5
BB, B	318.3		4.3		353.1		4.6		319.2		4.6
CCC or Lower	131.5		1.8		137.3		1.8		171.7		2.5
Total Investments in Fixed Maturities	$	7,479.4	100.0	%	$	7,605.9	100.0	%	$	6,922.1	100.0	%
Duration (in Years)
Total Investments in Fixed Maturities	7.9				7.8				7.1

1 Sum of percentages for individual lines may not equal subtotals and grand total due to rounding.

Kemper Corporation

Investment Concentration

(Dollars in Millions)

(Unaudited)


	Mar 31, 2021				Dec 31, 2020				Dec 31, 2019
Fair Value of Non-governmental Fixed Maturities by Industry	Amount		Percent of Total Investments		Amount		Percent of Total Investments		Amount		Percent of Total Investments
Finance, Insurance and Real Estate	$	1,911.7	19.5	%	$	1,916.3	18.4	%	$	1,522.8	16.4	%
Manufacturing	1,575.3		16.0		1,633.5		15.7		1,356.4		14.6
Transportation, Communication and Utilities	775.5		7.9		825.5		7.9		650.2		7.0
Services	552.5		5.6		581.3		5.6		604.4		6.5
Mining	270.4		2.8		285.7		2.7		154.5		1.7
Retail Trade	176.6		1.8		172.6		1.7		183.3		2.0
Wholesale Trade	0.5		—		0.5		—		72.9		0.8
Agriculture, Forestry and Fishing	—		—		—		—		12.4		0.1
Other	11.8		0.1		10.5		0.1		16.6		0.2
Total Fair Value of Non-governmental Fixed Maturities	$	5,274.3	53.7	%	$	5,425.9	52.1	%	$	4,573.5	49.3	%


	Mar 31, 2021
Ten Largest Investment Exposures 1	Fair Value		Percent of Total Investments
Fixed Maturities:
States including their Political Subdivisions:
Texas	$	136.1	1.4	%
California	85.1		0.9
New York	83.5		0.9
Colorado	83.1		0.8
Michigan	75.5		0.8
Georgia	71.9		0.7
Louisiana	69.2		0.7
Pennsylvania	65.5		0.7


Equity Securities at Fair Value—Other Equity Interests:

Vanguard Total World Stock ETF	205.4		2.1
iShares® Core MSCI Total International Stock ETF	79.8		0.8

Total	$	955.1	9.8	%

1Excluding Investments in U.S. Government and Government Agencies and Authorities at March 31, 2021.

Kemper Corporation

Municipal Bond Securities

(Dollars in Millions)

(Unaudited)


	Mar 31, 2021
	State General Obligation		Political Subdivision General Obligation		Revenue		Total Fair Value		Percent of Total Muni Bond1		Percent of Total Investments1
Texas	$	10.0	$	12.7	$	113.3	$	136.0	8.2	%	1.4	%
Georgia	8.1		6.2		57.5		71.8		4.3		0.7
Colorado	—		1.0		82.1		83.1		5.0		0.8
New York	6.4		8.9		68.2		83.5		5.0		0.9
Louisiana	37.1		5.3		26.8		69.2		4.1		0.7
Michigan	39.6		—		35.9		75.5		4.5		0.8
California	7.3		3.4		74.4		85.1		5.1		0.9
Pennsylvania	6.2		2.6		56.7		65.5		3.9		0.7
Massachusetts	4.1		1.5		45.1		50.7		3.0		0.5
Virginia	6.9		16.7		23.7		47.3		2.8		0.5
Florida	5.0		—		52.9		57.9		3.5		0.6
Minnesota	—		—		43.3		43.3		2.6		0.4
Washington	15.3		—		33.7		49.0		2.9		0.5
Oregon	34.1		—		11.6		45.7		2.7		0.5
Ohio	6.3		—		41.6		47.9		2.9		0.5
Utah	0.6		—		38.5		39.1		2.3		0.4
District of Columbia	4.6		—		29.4		34.0		2.0		0.3
South Carolina	—		1.8		17.3		19.1		1.1		0.2
New Mexico	—		—		34.6		34.6		2.1		0.4
Illinois	—		—		43.4		43.4		2.6		0.4
Indiana	—		—		30.7		30.7		1.8		0.3
Maryland	2.1		8.6		38.7		49.4		3.0		0.5
Hawaii	20.0		0.3		3.4		23.7		1.4		0.2
Alabama	—		—		10.4		10.4		0.6		0.1
Missouri	—		—		33.2		33.2		2.0		0.3
Tennessee	3.5		8.2		19.2		30.9		1.9		0.3
Arkansas	18.7		—		—		18.7		1.1		0.2
Kentucky	—		—		17.5		17.5		1.0		0.2
Mississippi	13.2		—		4.4		17.6		1.1		0.2
Arizona	—		0.8		20.0		20.8		1.2		0.2
Alaska	2.0		2.8		10.0		14.8		0.9		0.2
New Hampshire	4.3		0.4		12.0		16.7		1.0		0.2
Nebraska	—		7.8		12.9		20.7		1.2		0.2
Oklahoma	—		—		14.7		14.7		0.9		0.1
Wisconsin	—		7.3		6.1		13.4		0.8		0.1
North Dakota	—		—		12.8		12.8		0.8		0.1
New Jersey	—		—		11.4		11.4		0.7		0.1
Delaware	—		—		10.5		10.5		0.6		0.1
Connecticut	13.2		—		5.6		18.8		1.1		0.2
All Other States	0.1		8.2		91.2		99.5		6.0		1.0
Total	$	268.7	$	104.5	$	1,294.7	$	1,667.9	100.0	%	17.0	%

1 Sum of percentages for individual lines may not equal total due to rounding.

Kemper Corporation

Investments in Limited Liability

Companies and Limited Partnerships

(Dollars in Millions)

(Unaudited)


	Unfunded Commitment		Reported Value
Asset Class	Mar 31, 2021		Mar 31, 2021		Dec 31, 2020
Reported as Equity Method Limited Liability Investments:
Mezzanine Debt	$	58.8	$	105.9	$	102.5
Senior Debt	22.9		32.9		28.6
Distressed Debt	—		19.4		14.5
Secondary Transactions	12.8		12.4		11.2
Leveraged Buyout	0.1		3.8		3.5
Growth Equity	—		0.7		0.7
Real Estate	—		31.5		29.9
Other	—		12.6		13.1
Total Equity Method Limited Liability Investments	94.6		219.2		204.0

Alternative Energy Partnership Investments	31.5		54.4		21.3

Reported as Other Equity Interests at Fair Value:
Mezzanine Debt	69.6		125.8		118.3
Senior Debt	18.4		30.0		33.9
Distressed Debt	22.0		34.5		31.8
Secondary Transactions	6.2		4.0		4.2
Hedge Funds	—		78.7		71.6
Leveraged Buyout	7.0		33.8		30.7

Other	0.9		2.2		1.5
Total Reported as Other Equity Interests at Fair Value	124.1		309.0		292.0
Reported as Other Equity Interests at Modified Cost:

Other	0.2		11.6		15.7
Total Reported as Other Equity Interests at Modified Cost	0.2		11.6		15.7


Total Investments in Limited Liability Companies and Limited Partnerships	$	250.4	$	594.2	$	533.0

Kemper Corporation

Definitions of Non-GAAP Financial Measures

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

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

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

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

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

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

2) Net Realized Gains on Sales of Investments;

3) Impairment Losses;

4) Acquisition Related Transaction, Integration and Other Costs;

5) Debt Extinguishment, Pension and Other Charges; and

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

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

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

Kemper Corporation

Definitions of Non-GAAP Financial Measures (continued)

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


	Three Months Ended
Dollars in Millions (Unaudited)		Mar 31, 2021		Dec 31, 2020		Sep 30, 2020		Jun 30, 2020		Mar 31, 2020
Net Income		$	123.2	$	97.5	$	122.3	$	126.1	$	64.0
Less Net Income (Loss) From:
Income (Loss) from Change in Fair Value of Equity and Convertible Securities		41.2		57.8		35.7		56.6		(93.1)
Net Realized Gains on Sales of Investments		10.9		(0.1)		7.9		9.3		13.0
Impairment Losses		(3.2)		0.4		(0.8)		(5.5)		(9.5)
Acquisition Related Transaction, Integration and Other Costs		(12.9)		(15.8)		(11.4)		(13.5)		(9.3)
Debt Extinguishment, Pension and Other Charges		—		(50.6)		—		—		—

Adjusted Consolidated Net Operating Income (Loss)		$	87.2	$	105.8	$	90.9	$	79.2	$	162.9

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


	Three Months Ended
(Unaudited)		Mar 31, 2021		Dec 31, 2020		Sep 30, 2020		Jun 30, 2020		Mar 31, 2020
Net Income Per Unrestricted Share		$	1.88	$	1.49	$	1.87	$	1.93	$	0.96
Less Net Income (Loss) Per Unrestricted Share From:
Income (Loss) from Change in Fair Value of Equity and Convertible Securities		0.63		0.87		0.54		0.87		(1.40)
Net Realized Gains on Sales of Investments		0.17		—		0.12		0.14		0.19
Impairment Losses		(0.05)		0.01		(0.01)		(0.08)		(0.14)
Acquisition Related Transaction and Integration Costs		(0.20)		(0.24)		(0.17)		(0.21)		(0.14)
Debt Extinguishment, Pension and Other Charges		—		(0.77)		—		—		—

Adjusted Consolidated Net Operating Income Per Unrestricted Share		$	1.33	$	1.62	$	1.39	$	1.21	$	2.45

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

Earnings Call Presentation – 1Q 2021 First Quarter 2021 Earnings April 29, 2021

Earnings Call Presentation – 1Q 2021 Cautionary Statements Regarding Forward-Looking Information This presentation may contain or incorporate by reference information that includes or is based on forward-looking statements within the meaning of the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements give expectations or forecasts of future events and can be identified by the fact that they relate to future actions, performance or results rather than strictly to historical or current facts. Any or all forward-looking statements may turn out to be wrong, and, accordingly, readers are cautioned not to place undue reliance on such statements, which speak only as of the date of this presentation. Forward-looking statements involve a number of risks and uncertainties that are difficult to predict and are not guarantees of future performance. Among the general factors that could cause actual results and financial condition to differ materially from estimated results and financial condition are those factors listed in periodic reports filed by Kemper Corporation with the Securities and Exchange Commission (“SEC”). The COVID-19 outbreak and subsequent global pandemic (“Pandemic”) is an extraordinary event that creates unique uncertainties and risks. Kemper cannot provide any assurances as to the impacts of the Pandemic and related economic conditions on the Company’s operating and financial results. No assurances can be given that the results and financial condition contemplated in any forward-looking statements will be achieved or will be achieved in any particular timetable. Kemper assumes no obligation to publicly correct or update any forward-looking statements as a result of events or developments subsequent to the date of this presentation, including any such statements related to the Pandemic. The reader is advised, however, to consult any further disclosures Kemper makes on related subjects in its filings with the SEC. Non-GAAP Financial Measures This presentation contains non-GAAP financial measures that the company believes are meaningful to investors. Non-GAAP financial measures have been reconciled to the most comparable GAAP financial measure. Preliminary Matters 2

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

Earnings Call Presentation – 1Q 2021 First Quarter 2021 Highlights Despite top-line headwinds, produced solid returns and cash generation Solid financial results despite environmental changes • Specialty Auto continues to produce strong earnings, though top line headwinds persist; 1.8% growth in PIF (ex. Classic Car sale) reflects state shutdowns early in the year • Preferred P&C was impacted by catastrophe losses from winter weather events – no change to anticipated annual catastrophe loss expectations • Life & Health results continue to reflect increased COVID-related mortality and policy retention • Solar energy investment drove $13 million of net operating income 1st Quarter Overview Delivered double-digit ROE and growth in book value per share ex. unrealized gain and goodwill • Net income of $123 million and adjusted consolidated net operating income1 of $87 million; earnings per share of $1.85 on a diluted basis; adjusted consolidated net operating EPS1 of $1.31 on a diluted basis • 11% ROAE2, 18% ROAE2 excluding net unrealized gains on fixed maturities and goodwill1 • Book value per share ex. net unrealized gains on fixed maturities and goodwill1 grew 17% year-over-year • Generated $526 million of operating cash flow over the trailing 12 months • Closed on American Access Casualty acquisition April 1 Shareholder Value Creation ¹ Non-GAAP financial measure; please see reconciliation in appendix on pages 22-30 2 Return on average shareholders’ equity (5-point average) Strong capital and liquidity position provides financial flexibility • Repurchased $47 million worth of shares • Holding company remains a source of strength for subsidiaries with greater than $1.3 billion of liquidity • Debt-to-capital ratio of 20.6% is within target range of 17-22% Capital Management and Financial Strength 4

Earnings Call Presentation – 1Q 2021 Focused and consistent strategy execution yields solid value creation for all stakeholders First Quarter Financial Highlights 18% ROATCE and 17% YoY growth in TBV per common share excluding unrealized gains1 As Reported Quarter Ended (Dollars in millions, except per share amounts) Mar 31, 2021 Mar 31, 2020 Net Income $123 $64 Net Income – Per Diluted Share $1.85 $0.95 Adjusted Consolidated Net Operating Income1 $87 $163 Adj. Consolidated Net Op. Income – Per Diluted Share1 $1.31 $2.43 Catastrophe Losses $28 $6 Tangible Book Value Per Common Share excluding unrealized gains1 $42.87 $36.49 Return on Avg. Tangible Common Equity1 18.1% 19.5% Dividend Paid to Shareholders Per Share $0.31 $0.30 Specialty PIF growth (ex. Classic Car) 1.8% 10% 5 ¹ Non-GAAP financial measure; please see reconciliation in appendix on pages 22-30

Earnings Call Presentation – 1Q 2021 Despite market challenges, business model continues to produce high-quality earnings Review of Net Operating Income ¹ Non-GAAP financial measure; see reconciliation in appendix pages 22-30 *All Other includes partial satisfaction of judgment ($89 million), refinement of CEI estimate and impact of purchase accounting Continue to produce sound Operating Income 6 Three Months Ended, As Reported Mar. 31, Dec. 31, Sep. 30, Jun. 30, Mar. 31, Variance Dollars per Unrestricted Share - Diluted 2021 2020 2020 2020 2020 QoQ Net Income 1.85$ 1.46$ 1.83$ 1.91$ 0.95$ 0.90 (Income) Loss from Change in FV of Equity & Convertible Securities (0.62) (0.86) (0.53) (0.86) 1.39 (2.01) Investment Related (Gains)/Losses (0.16) - (0.12) (0.14) (0.19) 0.03 Net Impairment Losses 0.05 (0.01) 0.01 0.08 0.14 (0.09) Acquisition Related Transaction, Integration & Other Costs 0.19 0.24 0.17 0.21 0.14 0.05 Debt Extinguishment, Pension and Other Charges - 0.76 - - - - Adj. Consolidated Net Operating Income 1 1.31 1.59 1.36 1.20 2.43 (1.12) Sources of Volatility: Income (Loss) After-Tax From: Catastrophes (0.33) (0.07) (0.80) (0.34) (0.07) (0.26) - Solar Investment 0.20 0.05 - - - 0.20 Prior-year Reserve Development - (0.10) (0.10) (0.22) (0.01) 0.01 - Alternative Investment Income 0.32 0.27 0.12 (0.14) 0.07 0.25 - All Other* (0.03) (0.05) (0.05) - 1.03 (1.06) Total from Sources of Volatility 0.16$ 0.10$ (0.83)$ (0.70)$ 1.02$ (0.86)$

Earnings Call Presentation – 1Q 2021 Consistent Capital Generation and Attractive Returns Steady growth through various economic cycles Total Adjusted Return of BVPS Ex. Unrealized Gains on Fixed Maturities and Goodwill Return on Shareholders’ Equity 2016 2017 2018 2019 1Q20 2Q20 3Q20 4Q20 1Q21 Book Value Per Share ex. Goodwill and Unrealized¹ Cumulative Dividends Per Share Paid $31.21 $31.10$29.66 $40.27 $40.70 $44.41$42.58 $46.76 $48.29 1.1% 8.0% 11.4% 24.7% 19.5% 18.8% 17.9% 16.3% 18.1% 0.9% 6.6% 8.3% 16.3% 13.0% 12.8% 12.3% 11.3% 12.6% 2016 2017 2018 2019 1Q20 2Q20 3Q20 4Q20 1Q21 ROATCE ROE ex. Unrealized Gains on Fixed Maturities Growth 63% • Strong execution and solid operating results have led to consistent book value growth and shareholder returns • Book value growth reflects efficient capital deployment decisions and focus on intrinsic value creation • Attractive returns on equity through economic cycles • ROATCE measure appropriately captures investors compensation on tangible equity ¹ Non-GAAP financial measure; please see reconciliation in appendix on pages 22-30 2 Return on average tangible common equity (rolling 5 point avg.); please see reconciliation in appendix on pages 22-30 3 Return on average shareholder’s equity excluding unrealized gains on fixed maturities (rolling 5 point avg.); please see reconciliation in appendix on pages 22-30 2 3 7

Earnings Call Presentation – 1Q 2021 27.6% 21.9% 23.0% 16.4% 20.4% 20.6% 2016 2017 2018 2019 2020 1Q21 Debt-to-Capital <30% Strong Balance Sheet with Well-Funded Insurance Entities Significant capital and liquidity positions Debt Cash Flow from Operating Activities $2.7B $4.8B$4.0B$2.7B Total Capitalization Parent Company Liquidity Risk-Based Capital Ratios $299 $197 $101 $207 $733 $607 $385 $385 $540 $660 $700 $704 2016 2017 2018 2019 2020 1Q21 Borrowings Available Under Credit Agreement & from Subs HoldCo Cash & Investments (M M ) 415 430 410 355 340 335335 290 285 365 330 325 2016 2017 2018 2019 2020 1Q21 Life & Health P&C (ex. Alliance United) (% ) $684 $867 $641$582 (M M ) $241 $241 $539 $534 $448 $526 2016 2017 2018 2019 2020 1Q21 TTM $1,433 $5.7B Substantial financial flexibility for growth, investments and capital management $5.5B 8 $1,311

Earnings Call Presentation – 1Q 2021 Capital Actions Taken in 2021 Nearly $500 million of capital management actions taken year-to-date 9 • $47 million worth of common stock repurchased in the quarter • 590 thousand shares repurchased • Roughly 1% of outstanding shares • Repaid $50 million of our term loan due in 2023 • Third consecutive annual increase in dividend to $1.24 from $1.20 (at February 2021 Board meeting) • Closed on acquisition of American Access Casualty April 1 (~$372 million purchase price) Demonstrates strong capital stewardship and value creation for shareholders

Earnings Call Presentation – 1Q 2021 4.1% 3.2% 4.2% 4.5% 4.5% 0.2% 0.9% 1Q20 2Q20* 3Q20 4Q20 1Q21 55% 17% 6% 5% 6% 2% 9% Other States/ Munis 64% 30% 4% 2% Diversified & Highly-Rated Portfolio Fixed Maturity Ratings $7.5 Billion A or Higher ≤ CCC B / BB BBB Diversified Portfolio with Consistent Returns Note: Charts may not balance due to rounding ¹ I Equity securities excludes $295 million of Other Equity Interests of LP/LLC’s that have been reclassified into Alternative Investments • Net investment income and portfolio yield benefitted from strong alternative investment performance • Investment portfolio is designed for growth of both income and total return • Stable investment income supports long- term business objectives $80 $80 $81 $81 $76 $6 $(12) $11 $22 $27 1Q20 2Q20 3Q20 4Q20 1Q21 Core Portfolio Alternative Inv. Portfolio Net Investment Income¹ (M M ) $86 $103$103$92$68 Overview Corporates Short-term Alternatives¹ Equity¹ U.S. Gov’t Portfolio Composition Pre-Tax Equiv. Annualized Book Yield $9.8 Billion 10 *90 BPS adverse impact from alternatives Annualized Solar Yield

Earnings Call Presentation – 1Q 2021 Solar Energy Investment: In Line with Environmental Impact Goals $100 million commitment to solar energy tax credit equity generating attractive returns 11 • In conjunction with Sunrun, invested in a diversified basket of residential solar energy projects • Opportunity to provide renewable energy solutions for homeowners that benefits the environment • Expect to earn an attractive return that will primarily be recognized as tax credits and deductions as well as operating cash flows • Majority of financial benefits will be recognized over the next two years • Largest impact is expected to have taken place in 1Q’21 Reporting on Income Statement Line Items ▪ $15.4 million reduction to Total Revenues in 1Q’21 ($0.23) per share ▪ ($28.6) million benefit to Tax Expense in 1Q’21 $0.43 per share ▪ $13.2 million net benefit in 1Q’21 $0.20 per share ▪ Will reduce our Effective Tax Rate over next two years Continue to optimize our capital management through investments with attractive returns and cash flows

Earnings Call Presentation – 1Q 2021 93.1 88.5 85.4 90.8 93.2 93.1 91.0 88.9 89.4 93.2 1Q20 2Q20 3Q20 Q420 Q121 Underlying Combined Ratio¹ QTD YTD Specialty Auto Insurance Segment1 Environment continues to normalize with state-specific geographic re-openings Source: Population growth sources include U.S. Census Bureau and The Association Institute ¹ As adjusted for acquisition; see reconciliation on Pages 22-30 2 Non-GAAP financial measure; see reconciliation in appendix on pages 22-30 (% ) Key Highlights Strength of franchise continues to create value for our stakeholders Written Premium Population CAGR State Groupings TTM ($ million) YoY Growth ’16-’19 Est. ’20-’30 California $2,051 1.4% 0.3% 0.8% Florida / Texas $878 16.7% 1.3% 1.6% Expansion States $225 19.7% 1.0% 1.1% Other $51 - 0.3% 0.4% Total $3,205 6.3% US 0.6% Hispanic 1.6% 12 Key Metrics ($ in millions) 1Q’21 Change to 1Q’20 Earned Premiums $878 6.7% Underlying Loss & LAE Ratio2 74.0% (130)bps Underlying Expense Ratio2 19.1% 120 bps Policies In-Force (000) 1,915 0.1% Policies In-Force ex. Classic Car (000) 1,912 1.8% • Slow state re-openings • 1.8% growth in PIF, excluding Classic Car • Slow shopping behavior (particularly in CA) impacted early in the quarter with improved customer demand and growth in March • Pre-COVID levels of frequency are returning • Written premium increased 7%, led by continued opportunities in core and emerging geographies, and strong commercial vehicle growth

Earnings Call Presentation – 1Q 2021 Preferred Property & Casualty Insurance Segment Ongoing efforts to bring segment to target profitability continue Key Highlights 97.5 88.6 96.8 103.1 97.6 83.5 77.8 80.4 77.6 78.8 1Q20 2Q20 3Q20 4Q20 1Q21 Underlying Combined Ratio¹ Auto Home & Other Profitability improvement actions continue ¹ Non-GAAP financial measure; please see reconciliation in appendix on pages 22-30 • Underlying combined ratio in the segment decreased to 90.7% for the quarter • Auto PIF and underlying combined ratio results reflect efforts to reposition the business for profitability • Home & Other absorbed seasonally-elevated catastrophe activity driven by winter weather • While Q1 was elevated from a historical perspective, no change to full year expected catastrophe impact range (% ) 13 Key Metrics ($ in millions) 1Q’21 Change to 1Q’20 Auto Earned Premiums $103 (10.4)% Policies In-Force (000) 215 (11.3)% Home & Other Earned Premiums $59 (10.3)% Policies In-Force (000) 210 (9.1)%

Earnings Call Presentation – 1Q 2021 Life & Health Insurance Segment Positive momentum as “P&C catastrophe-like” impact declines Note: Chart may not balance due to rounding ¹ Excludes other income and solar credit impairment (M M ) • Business remains profitable, despite challenging pandemic impact - Increased mortality experience remains largely in line with country-wide trends - Stronger policy retention continues to elevate ongoing benefit cost while creating long-term value • Product demand increasing with an improving environment Key Highlights $163 $163 $161 $162 $161 $51 $44 $51 $53 $51 1Q20 2Q20 3Q20 4Q20 1Q21 Revenues1 Earned Premiums Net Investment Income $212$211$207$214 $215 Long-term cash flow and value creation remain strong Key Metrics ($ in millions) 1Q’21 Change to 1Q’20 L&H Net Operating Income $7.3 (67.3)% Life Face Value of In-Force $20,046 1.6% Policies In-Force (000) 3,342 (2.4)% 14

Earnings Call Presentation – 1Q 2021 Appendix 15

Earnings Call Presentation – 1Q 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 ~6.3M Policies ~30,000 Agents/Brokers ~9,500 Employees Preferred personal lines insurance providing preferred automobile, homeowners and other personal insurance products ~$14B 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 – 1Q 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 – 1Q 2021 Below Investment Grade Fixed Maturities Portfolio of $450 Million 18 Portfolio is diversified across different asset types Below investment grade portfolio represents 6% of our fixed maturities portfolio $184 $98 $94 $56 $13 $4 $1 40.9% 21.7% 20.9% 12.5% 2.9% 0.9% 0.2% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 40.0% 45.0% $0 $20 $40 $60 $80 $100 $120 $140 $160 $180 $200 Private Senior CLO Private Junior Public Corp Munis Foreign Government Non-Agency MBS B e lo w I n v e st m e n t G ra d e $ A m o u n t (M M ) % o f F ix e d M a tu ri ty P o rt fo li o

Earnings Call Presentation – 1Q 2021 CLO Composition ($783 Million) 19 $97 $529 $36 $23 $97 12.4% 67.5% 4.7% 2.9% 12.4% 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% $0 $100 $200 $300 $400 $500 $600 AAA AA A BBB High Yield Well-diversified CLO book with 85% of holdings classified ‘A’ or higher $ A m o u n t (M M ) % o f C LO P o rt fo li o CLOs represent 8% of investment portfolio

Earnings Call Presentation – 1Q 2021 Alternative Investment Portfolio of $594 Million 20 Portfolio is highly diversified with strategies focused on private credit, private equity and hedge funds Alternative investment portfolio is ~6% of total investments and diversified across underlying investment strategies with primary focus on current income generation $348.4 $112.6 $78.7 $54.4 Private Credit Private Equity Hedge Funds Tax Equity Funds Private Credit ~3% of total investments (59% of Alts portfolio) Diversification across date of investment, industry and geography Private Equity ~ 1% of total investments (19% of Alts portfolio) Diversification across date of investment, industry and geography Hedge Funds < 1% of total investments (13% of Alts portfolio) Diversified in strategies with focus on minimum correlation to public markets and additional liquidity relative to Private Credit and Private Equity strategies Tax Equity Funds < 1% of total investments (9% of Alts portfolio)

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

Earnings Call Presentation – 1Q 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 22 1Q'21 4Q'20 3Q'20 2Q'20 1Q'20 2019 2018 2017 2016 Book Value Per Share 66.74$ 69.74$ 66.47$ 64.15$ 57.54$ 59.59$ 47.10$ 41.11$ 38.52$ Less: Net Unrealized Gains on Fixed Maturities Per Share (6.74) (11.07) (9.84) (9.02) (4.01) (6.51) (1.70) (5.54) (3.52) Book Value Per Share Excluding Net Unrealized Gains on Fixed Maturities 60.00$ 58.67$ 56.63$ 55.13$ 53.53$ 53.08$ 45.40$ 35.57$ 35.00$ Less: Goodwill (17.13) (17.02) (17.03) (17.06) (17.04) (16.72) (17.18) (6.28) (6.30) Book Value Per Share Excluding Net Unrealized Gains on Fixed Maturities and Goodwill 42.87$ 41.65$ 39.60$ 38.07$ 36.49$ 36.36$ 28.22$ 29.29$ 28.70$ For the Periods Ended

Earnings Call Presentation – 1Q 2021 Return on Equity Non-GAAP Financial Measures 23 1Q'21 4Q'20 3Q'20 2Q'20 1Q'20 2019 2018 2017 2016 Rolling 12 Month Return on Average Shareholders' Equity (5 Point Avg) 11.1% 9.8% 10.8% 11.4% 11.8% 14.8% 7.7% 5.9% 0.8% Less: Net Unrealized Gains on Fixed Maturities 1.5% 1.5% 1.5% 1.4% 1.2% 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) 12.6% 11.3% 12.3% 12.8% 13.0% 16.3% 8.3% 6.6% 0.9% Less: Goodwill 5.5% 5.0% 5.6% 6.0% 6.5% 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) 18.1% 16.3% 17.9% 18.8% 19.5% 24.7% 11.4% 8.0% 1.1% For the Periods Ended

Earnings Call Presentation – 1Q 2021 Reconciliation of “All Other” Sources of Volatility Non-GAAP Financial Measures 24 Three Months Ended, As Reported Mar. 31, Dec. 31, Sep. 30, Jun. 30, Mar. 31, Variance Dollars per Unrestricted Share - Diluted 2021 2020 2020 2020 2020 QoQ - - All Other Volatility Partial Satisfaction of Judgment - - - - 1.05 (1.05) Sale of Classic Collectors Auto Business - - - - - - Refinement of CEI Estimate - - - 0.06 0.05 (0.05) Impact of Purchase Accounting (0.03) (0.05) (0.05) (0.06) (0.07) 0.04 Total All Other (0.03) (0.05) (0.05) - 1.03 (1.06)

Earnings Call Presentation – 1Q 2021 Kemper believes that Adjusted Consolidated Net Operating Income provides investors with a valuable measure of its ongoing performance because it reveals underlying operational performance trends that otherwise might be less apparent if the items were not excluded. 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 25

Earnings Call Presentation – 1Q 2021 Diluted Adjusted Consolidated Net Operating Income Per Unrestricted Share is a non-GAAP financial measure computed by dividing Adjusted Consolidated Net Operating Income (Loss) attributed to unrestricted shares by the weighted-average unrestricted shares and equivalent shares outstanding. The most directly comparable GAAP financial measure is Diluted Net Income Per Unrestricted Share. Kemper believes that Diluted Adjusted Consolidated Net Operating Income Per Unrestricted Share provides investors with a valuable measure of its ongoing performance because it reveals underlying operational performance trends that otherwise might be less apparent if the items were not excluded. Income from change in fair value of equity and convertible securities, net realized gains on sales of investments, impairment losses related to investments, acquisition related transaction, integration and other costs and loss from early extinguishment of debt included in Kemper’s results may vary significantly between periods and are generally driven by business decisions and external economic developments such as capital market conditions that impact the values of the company’s investments, the timing of which is unrelated to the insurance underwriting process. Non-GAAP Financial Measures 26 Per Unrestricted Share 1Q21 4Q20 3Q20 2Q20 1Q20 Net Income - Diluted 1.85$ 1.46$ 1.83$ 1.91$ 0.95$ Net (Income) Loss From: Change in Fair Value of Equity & Convertible Securities (0.62) (0.86) (0.53) (0.86) 1.39 Net Realized Gains on Sales of Investments (0.16) - (0.12) (0.14) (0.19) Impairment Losses 0.05 (0.01) 0.01 0.08 0.14 Acquisition Related Transaction, Integration and Other Costs 0.19 0.24 0.17 0.21 0.14 Debt Extinguishment, pension and other charges - 0.76 - - - Adj. Consolidated Net Operating Income - Diluted 1.31$ 1.59$ 1.36$ 1.20$ 2.43$ For the Three Months Ended

Earnings Call Presentation – 1Q 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 27

Earnings Call Presentation – 1Q 2021 Underlying Combined Ratio – Continued Non-GAAP Financial Measures 28 1Q21 4Q20 3Q20 2Q20 1Q20 Specialty P&C Insurance Combined Ratio as Reported 93.5% 91.7% 86.3% 91.0% 94.5% Current Year Catastrophe Loss and LAE Ratio (0.2%) (0.6%) (0.2%) (0.6%) 0.0% Prior Years Non-Catastrophe Losses and LAE 0.2% 0.2% (0.2%) (1.3%) (0.6%) Prior Years Catastrophe Losses and LAE Ratio 0.0% 0.0% 0.0% 0.0% 0.0% Underlying Combined Ratio 93.5% 91.3% 85.9% 89.1% 93.9% Preferred P&C Insurance Combined Ratio as Reported 105.4% 96.2% 129.9% 102.2% 92.6% Current Year Catastrophe Loss and LAE Ratio (14.8%) 3.1% (35.5%) (12.6%) (2.7%) Prior Years Non-Catastrophe Losses and LAE (0.1%) (5.6%) (3.6%) (5.0%) 1.8% Prior Years Catastrophe Losses and LAE Ratio 0.2% (0.1%) (0.1%) (0.2%) 0.6% Underlying Combined Ratio 90.7% 93.6% 90.7% 84.4% 92.3% Preferred Auto Combined Ratio as Reported 99.5% 112.3% 103.5% 100.1% 99.5% Current Year Catastrophe Loss and LAE Ratio (0.6%) (0.4%) (1.6%) (2.0%) (0.2%) Prior Years Non-Catastrophe Losses and LAE (1.2%) (9.2%) (5.3%) (9.8%) (1.9%) Prior Years Catastrophe Losses and LAE Ratio (0.1%) 0.4% 0.2% 0.3% 0.1% Underlying Combined Ratio 97.6% 103.1% 96.8% 88.6% 97.5% Preferred Home & Other Combined Ratio as Reported 115.7% 68.6% 175.6% 105.4% 80.7% Current Year Catastrophe Loss and LAE Ratio (39.5%) 9.2% (94.1%) (28.8%) (7.0%) Prior Years Non-Catastrophe Losses and LAE 1.9% 0.6% (0.6%) 2.3% 8.3% Prior Years Catastrophe Losses and LAE Ratio 0.7% (0.8%) (0.5%) (1.1%) 1.5% Underlying Combined Ratio 78.8% 77.6% 80.4% 77.8% 83.5% For the Three Months Ended

Earnings Call Presentation – 1Q 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 2018 and including historical results of Kemper and Infinity in periods prior to acquisition date of July 2, 2018. 29 Specialty P&C Insurance Segment 31-Mar-21 31-Dec-20 30-Sep-20 30-Jun-20 31-Mar-20 Earned Premiums Kemper Specialty P&C - GAAP As Reported 877.6$ 882.4$ 871.4$ 759.0$ 822.5$ Current Year Non-CAT Losses and LAE Kemper Specialty P&C - GAAP As Reported 650.0$ 626.2$ 589.0$ 515.8$ 619.8$ Less: Impact of Purchase Accounting Amortization of Fair Value Adjustment to Infinity's Unpaid Loss and LAE 0.4 0.4 0.3 0.8 0.7 As Adjusted 1 649.6$ 625.8$ 588.7$ 515.0$ 619.1$ Insurance Expenses Kemper Specialty P&C - GAAP As Reported 170.3$ 179.1$ 159.5$ 161.2$ 152.1$ Less: Impact of Purchase Accounting 2.3 4.1 4.2 4.5 5.2 As Adjusted 1 168.0$ 175.0$ 155.3$ 156.7$ 146.9$ As Adjusted 1 Underlying Combined Ratio As Adjusted 1 Underlying Loss & LAE Ratio 74.0% 70.9% 67.6% 67.8% 75.3% As Adjusted 1 Expense Ratio 19.1% 19.8% 17.8% 20.6% 17.9% As Adjusted 1 Underlying Combined Ratio 93.2% 90.8% 85.4% 88.5% 93.1% Three Months Ended

Earnings Call Presentation – 1Q 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 2018 and including historical results of Kemper and Infinity in periods prior to acquisition date of July 2, 2018. 30 Specialty Personal Automobile Insurance 31-Mar-21 31-Dec-20 30-Sep-20 30-Jun-20 31-Mar-20 Earned Premiums Kemper Specialty Auto - GAAP As Reported 785.4$ 796.1$ 792.2$ 689.8$ 753.2$ Current Year Non-CAT Losses and LAE Kemper Specialty Auto - GAAP As Reported 586.4$ 569.1$ 543.4$ 472.4$ 576.0$ Less: Impact of Purchase Accounting Amortization of Fair Value Adjustment to Infinity's Unpaid Loss and LAE 0.3 0.3 0.2 0.6 0.6 As Adjusted 1 586.1$ 568.8$ 543.2$ 471.8$ 575.4$ Insurance Expenses Kemper Specialty Auto - GAAP As Reported 155.3$ 162.8$ 145.6$ 146.7$ 139.2$ Less: Impact of Purchase Accounting 1.8 3.3 3.2 3.5 4.5 As Adjusted 1 153.5$ 159.5$ 142.4$ 143.2$ 134.7$ As Adjusted 1 Underlying Combined Ratio As Adjusted 1 Underlying Loss & LAE Ratio 74.6% 71.4% 68.6% 68.4% 76.4% As Adjusted 1 Expense Ratio 19.5% 20.0% 18.0% 20.8% 17.9% As Adjusted 1 Underlying Combined Ratio 94.2% 91.5% 86.5% 89.2% 94.3% Three Months Ended



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


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


☐			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))


Item 9.01.			Financial Statements and Exhibits.