kmpr-20230202
0000860748false00008607482023-02-022023-02-020000860748us-gaap:CommonStockMember2023-02-022023-02-020000860748kmpr:A5875FixedRateResetJuniorSubordinatedDebenturesDue2062Member2023-02-022023-02-02

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
Form 8-K
 
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): February 2, 2023 
Kemper Corporation
(Exact name of registrant as specified in its charter)
 
Commission File Number: 001-18298
 
DE 95-4255452
(State or other jurisdiction
of incorporation)		 (IRS Employer
Identification No.)
200 E. Randolph Street, Suite 3300, Chicago, IL 60601
(Address of principal executive offices, including zip code)
312-661-4600
(Registrant’s telephone number, including area code)
(Former name or former address, if changed since last report)
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the Registrant under any of the following provisions (see General Instruction A.2.below):
☐Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock, par value $0.10 per shareKMPRNYSE
5.875% Fixed-Rate Reset Junior Subordinated Debentures due 2062KMPBNYSE

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


Section 2. – Financial Information
Item 2.02.Results of Operations and Financial Condition.
On February 2, 2023, Kemper Corporation ("Kemper" or the "Registrant") issued a press release announcing its financial results for the fourth quarter of 2022 and the availability of Kemper’s fourth quarter investor supplement and earnings call presentation on its website, kemper.com. The press release, the investor supplement and the earnings call presentation are furnished as Exhibits 99.1, 99.2 and 99.3, respectively, to this report.
Section 9. – Financial Statements and Exhibits.
Item 9.01.Financial Statements and Exhibits.
(d) Exhibits

99.1 Registrant’s press release dated February 2, 2023.
99.2 Fourth Quarter 2022 Investor Supplement of Kemper Corporation.
99.3 Fourth Quarter 2022 Earnings Call Presentation.


SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
  Kemper Corporation
Date:February 2, 2023/s/    JAMES J. MCKINNEY
 James J. McKinney
 Executive Vice President and Chief Financial Officer (Principal Financial Officer)


Exhibit 99.1
 

kemperlogocolorwebfinala05a.jpg
Kemper Corporation
200 East Randolph Street
Suite 3300
Chicago, IL 60601
kemper.com

Press Release
Kemper Reports Fourth Quarter 2022 Operating Results
CHICAGO, February 2, 2023 — Kemper Corporation (NYSE: KMPR) reported a net loss of $55.5 million, or $(0.87) per diluted share, for the fourth quarter of 2022, compared to a net loss of $105.8 million, or $(1.66) per diluted share, for the fourth quarter of 2021. As Adjusted for Acquisitions1 of American Access Casualty Company (“AAC”) and Infinity Property and Casualty Corporation, the net loss was $52.5 million, or $(0.82) per diluted share, for the fourth quarter of 2022, compared to a net loss of $101.3 million, or $(1.59) per diluted share, for the fourth quarter of 2021.
Adjusted Consolidated Net Operating Loss1 was $26.6 million, or $(0.41) per diluted share, for the fourth quarter of 2022, compared to Adjusted Consolidated Net Operating Loss1 of $130.8 million, or $(2.05) per diluted share, for the fourth quarter of 2021.
Key themes of the quarter include:
•Focus remains on restoring profitability; actions taken earning in at an accelerated rate
•Higher seasonality and modest current year prior quarter reserve development impacted results
•Rate-taking activities continue ahead of schedule:
◦Specialty P&C Personal Auto - Filed an additional 20% increase on 58% of the book
◦Preferred P&C Personal Auto - Filed an additional 16% increase on 15% of the book
•Continued strong profitable growth momentum in Commercial Vehicle, net written premiums grew 33% year-over-year
•Improving Life profitability as mortality continues to moderate
•Strategic initiatives announced to reduce costs and enhance our capabilities are on track
◦Submitted initial filing with the Illinois Department of Insurance with respect to reciprocal’s formation
◦Restructuring program run rate savings of $61 million to date
◦Completed the divestiture of Reserve National Insurance Company and its subsidiaries—otherwise known as Kemper Health
•Declared dividend of $0.31 per share

“In the fourth quarter we demonstrated continuing improvement in the underlying profitability of our core businesses masked by a few infrequent items that impacted financial results. I am confident in the accelerating path of our return to profitability,” said Joseph P. Lacher, Jr., President, CEO and Chairman. “Our rate and non-rate actions, cost structure measures, and improving profitability in our Life business are each earning in at an accelerating rate. The strength of Kemper’s differentiated capabilities, market focus, and enhancement initiatives position the company to provide attractive near- and long-term returns to shareholders."
1 Non-GAAP financial measure. All Non-GAAP financial measures are denoted with footnote 1 throughout this release. See “Use of Non-GAAP Financial Measures” for additional information.

 Three Months EndedYear Ended
(Dollars in Millions, Except Per Share Amounts) (Unaudited)Dec 31,
2022		Dec 31,
2021		Dec 31,
2022		Dec 31,
2021
Net Income (Loss)$(55.5)$(105.8)$(301.2)$(120.5)
Adjusted Consolidated Net Operating Income (Loss) 1
$(26.6)$(130.8)$(156.9)$(218.8)
Impact of Catastrophe Losses and Related Loss Adjustment Expense (LAE) on Net Income$(6.4)$(10.2)$(62.6)$(85.2)
Diluted Net Income (Loss) Per Share From:
Net Income (Loss)$(0.87)$(1.66)$(4.72)$(1.87)
Adjusted Consolidated Net Operating Income (Loss) 1
$(0.41)$(2.05)$(2.46)$(3.40)
Impact of Catastrophe Losses and Related LAE on Net Income (Loss) Per Share$(0.10)$(0.16)$(0.98)$(1.33)
Revenues
Total revenues for the fourth quarter of 2022 decreased $117.2 million, or 8 percent, to $1,376.7 million, compared to the fourth quarter of 2021, driven by $50.7 million of lower Specialty P&C earned premiums, $22.2 million decrease in the change in fair value of equity and convertible securities, $21.9 million of lower Preferred P&C earned premiums, $19.5 million of lower Life & Health earned premiums, and a $17.8 million decrease in net realized investment gains. Net investment income decreased $2.1 million to $106.3 million in the fourth quarter of 2022 compared to the fourth quarter of 2021 due primarily to lower returns from Alternative Investments and level of investment in Equity Securities, partially offset by higher levels and yields on Fixed Income securities and level of investment in Company-Owned Life Insurance.




2

Segment Results
Unless otherwise noted, (i) the segment results discussed below are presented on an after-tax basis, (ii) prior-year development includes both catastrophe and non-catastrophe losses and LAE, (iii) catastrophe losses and LAE exclude the impact of prior-year development, (iv) loss ratio includes loss and LAE, and (v) all comparisons are made to the prior year quarter unless otherwise stated.
Three Months EndedYear Ended
(Dollars in Millions) (Unaudited)Dec 31,
2022		Dec 31,
2021		Dec 31,
2022		Dec 31,
2021
Segment Net Operating Income (Loss):
Specialty Property & Casualty Insurance$(35.1)$(125.2)$(147.4)$(196.1)
Preferred Property & Casualty Insurance(0.9)(7.4)(25.9)(12.5)
Life & Health Insurance20.8 5.1 54.2 28.2 
Total Segment Net Operating Income (Loss)(15.2)(127.5)(119.1)(180.4)
Corporate and Other Net Operating Income (Loss)(11.4)(3.3)(37.8)(38.4)
Adjusted Consolidated Net Operating Income (Loss) 1
(26.6)(130.8)(156.9)(218.8)
Net Income (Loss) From:
Change in Fair Value of Equity and Convertible Securities— 17.5 (63.1)90.5 
Net Realized Investment Gains (Losses)3.1 17.2 3.4 51.2 
Impairment Losses(2.9)(2.5)(20.4)(8.7)
Acquisition and Disposition Related Transaction, Integration, Restructuring and Other Costs(29.1)(7.2)(61.3)(34.7)
Loss from Early Extinguishment of Debt— — (2.9)— 
Net Income (Loss)$(55.5)$(105.8)$(301.2)$(120.5)
The Specialty Property and Casualty Insurance segment reported net operating loss of $35.1 million for the fourth quarter of 2022, compared to net operating loss of $125.2 million in the fourth quarter of 2021. Results improved due primarily to a lower underlying loss ratio. The segment’s Underlying Combined Ratio1 was 107.8 percent, compared to 119.4 percent in the fourth quarter of 2021. This decrease is driven primarily by higher earned premiums per exposure and lower frequency trends as a result of ongoing profit improvement initiatives.

The Preferred Property and Casualty Insurance segment reported net operating loss of $0.9 million for the fourth quarter of 2022, compared to a net operating loss of $7.4 million in the fourth quarter of 2021. Results improved due primarily to lower prior year development. The segment’s Underlying Combined Ratio1 was 106.6 percent, compared to 106.9 percent in the fourth quarter of 2021. This decrease is driven primarily by higher than expected non-CAT weather in Homeowners.

The Life and Health Insurance segment reported net operating income of $20.8 million for the fourth quarter of 2022, compared to a net operating income of $5.1 million in the fourth quarter of 2021. This increase is primarily driven by lower mortality in life insurance products.







3


Capital
Total Shareholders’ Equity at the end of the quarter was $2,443.2 million, a decrease of $1,564.5 million, or 39 percent, since year-end 2021 primarily driven by a decrease in the fair value of the Company’s fixed income bond portfolio, a net operating loss, and cash dividends to shareholders. Kemper and its direct non-insurance subsidiaries ended the quarter with cash and investments of $417.6 million, and the $600.0 million revolving credit agreement was undrawn.
On November 2, 2022, Kemper announced that its Board of Directors declared a quarterly dividend of $0.31 per share, or $20.1 million. The dividend was paid on December 1, 2022 to its shareholders of record as of November 15, 2022.
Kemper ended the quarter with a book value per share of $38.23, a decrease of 39 percent from $62.93 at the end of 2021. Book Value Per Share Excluding Net Unrealized (Gains) Losses on Fixed Maturities1 was $49.44, compared to $55.04 at the end of 2021.
4

Unaudited condensed consolidated statements of income (loss) for the three and twelve months ended December 31, 2022 and 2021 are presented below.
Three Months EndedYear Ended
(Dollars in Millions, Except Per Share Amounts)
Dec 31,
2022		Dec 31,
2021		Dec 31,
2022		Dec 31,
2021
Revenues:
Earned Premiums
$1,267.0 $1,359.1 $5,266.3 $5,253.7 
Net Investment Income
106.3 108.4 422.6 427.3 
Change in Value of Alternative Energy Partnership Investments2
1.3 (14.3)(19.9)(61.2)
Other Income
1.9 — 9.2 4.8 
Income (Loss) from Change in Fair Value of Equity and Convertible Securities
— 22.2 (79.9)114.6 
Net Realized Investment Gains (Losses)3.9 21.7 4.3 64.8 
Impairment Losses(3.7)(3.2)(25.8)(11.0)
Total Revenues1,376.7 1,493.9 5,576.8 5,793.0 
Expenses:
Policyholders’ Benefits and Incurred Losses and Loss Adjustment Expenses
1,078.3 1,276.0 4,504.4 4,600.8 
Insurance Expenses
287.6 309.1 1,200.6 1,218.1 
Loss from Early Extinguishment of Debt— — 3.7 — 
Interest and Other Expenses
86.5 56.2 257.6 219.4 
Total Expenses1,452.4 1,641.3 5,966.3 6,038.3 
Income (Loss) before Income Taxes (75.7)(147.4)(389.5)(245.3)
Income Tax Benefit (Expense)20.2 41.6 88.3 124.8 
Net Income (Loss)$(55.5)$(105.8)$(301.2)$(120.5)
Net Income (Loss) Per Unrestricted Share:
Basic
$(0.87)$(1.66)$(4.72)$(1.87)
Diluted
$(0.87)$(1.66)$(4.72)$(1.87)
Weighted-average Outstanding (Shares in Thousands):
Unrestricted Shares - Basic63,888.1 63,654.6 63,825.5 64,264.4 
Unrestricted Shares and Equivalent Shares - Diluted63,888.1 63,654.6 63,825.5 64,264.4 
Dividends Paid to Shareholders Per Share$0.31 $0.31 $1.24 $1.24 

2Income related to Changes in Value of Alternative Energy Partnership Investments was $1.3 million for the three months ended December 31, 2022, compared to a loss of $14.3 million for the same period in 2021. Tax expense related to the Alternative Energy Partnership Investments were $0.0 million for the three months ended December 31, 2022, compared to tax benefits of $11.2 million for the same period in 2021. This resulted in a net income of $1.3 million and a net loss of $3.1 million attributable to Alternative Energy Partnership Investments for the three months ended December 31, 2022 and 2021, respectively.

2Loss related to Changes in Value of Alternative Energy Partnership Investments was $19.9 million for the year ended December 31, 2022, compared to loss of $61.2 million for the same period in 2021. Tax benefits related to the Alternative Energy Partnership Investments were $8.0 million, compared to tax benefits of $79.0 million for the year ended December 31, 2022 and 2021, respectively. This resulted in a net loss of $11.9 million and a net income of $17.8 million attributable to Alternative Energy Partnership Investments for the year ended December 31, 2022 and 2021, respectively.
5

Unaudited business segment revenues for the three and twelve months ended December 31, 2022 and 2021 are presented below.
Three Months EndedYear Ended
(Dollars in Millions)Dec 31,
2022		Dec 31,
2021		Dec 31,
2022		Dec 31,
2021
REVENUES:
Specialty Property & Casualty Insurance:
Earned Premiums:
Personal Automobile$830.4 $918.1 $3,496.7 $3,533.7 
Commercial Automobile151.2 114.2 549.7 414.8 
Total Earned Premiums981.6 1,032.3 4,046.4 3,948.5 
Net Investment Income37.9 37.8 140.7 152.5 
Change in Value of Alternative Energy Partnership Investments0.7 (6.7)(9.9)(29.0)
Other Income1.0 1.0 6.0 4.1 
Total Specialty Property & Casualty Insurance Revenues1,021.2 1,064.4 4,183.2 4,076.1 
Preferred Property & Casualty Insurance:
Earned Premiums:
Personal Automobile84.2 101.4 363.7 410.5 
Homeowners49.1 52.7 200.0 207.3 
Other Personal7.4 8.5 31.8 33.9 
Total Earned Premiums140.7 162.6 595.5 651.7 
Net Investment Income13.5 17.1 49.7 68.6 
Change in Value of Alternative Energy Partnership Investments0.3 (3.8)(4.7)(16.3)
Total Preferred Property & Casualty Insurance Revenues154.5 175.9 640.5 704.0 
Life & Health Insurance:
Earned Premiums:
Life101.1 101.5 405.7 401.7 
Accident & Health31.4 47.6 168.2 189.9 
Property12.2 15.1 50.5 61.9 
Total Earned Premiums144.7 164.2 624.4 653.5 
Net Investment Income52.6 50.8 216.5 202.7 
Change in Value of Alternative Energy Partnership Investments0.3 (3.7)(5.3)(15.8)
Other Income0.2 (1.6)(0.6)(1.3)
Total Life & Health Insurance Revenues197.8 209.7 835.0 839.1 
Total Segment Revenues1,373.5 1,450.0 5,658.7 5,619.2 
Income (Loss) from Change in Fair Value of Equity and Convertible Securities— 22.2 (79.9)114.6 
Net Realized Investment Gains (Losses)3.9 21.7 4.3 64.8 
Impairment Losses(3.7)(3.2)(25.8)(11.0)
Other3.0 3.2 19.5 5.4 
Total Revenues$1,376.7 $1,493.9 $5,576.8 $5,793.0 
6

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


Dec 31,
2022		Dec 31,
2021
Assets:
Investments:
Fixed Maturities at Fair Value
$6,894.8 $7,986.9 
Equity Securities at Fair Value
243.2 830.6 
Equity Method Limited Liability Investments217.0 241.9 
Alternative Energy Partnership Investments16.3 39.6 
Short-term Investments at Cost which Approximates Fair Value278.4 284.1 
Company-Owned Life Insurance
586.5 448.1 
Loans to Policyholders
283.4 286.2 
Other Investments269.9 270.0 
Total Investments
8,789.5 10,387.4 
Cash
212.4 148.2 
Receivables from Policyholders
1,286.6 1,418.7 
Other Receivables
262.6 207.3 
Deferred Policy Acquisition Costs
625.6 677.6 
Goodwill
1,300.3 1,312.0 
Current Income Tax Assets
167.6 173.1 
Deferred Income Tax Assets189.4 — 
Other Assets
530.0 592.2 
Total Assets
$13,364.0 $14,916.5 
Liabilities and Shareholders’ Equity:
Insurance Reserves:
Life & Health
$3,554.0 $3,540.9 
Property & Casualty
2,756.9 2,772.7 
Total Insurance Reserves
6,310.9 6,313.6 
Unearned Premiums
1,704.4 1,898.7 
Policyholder Contract Liabilities
701.3 504.0 
Deferred Income Tax Liabilities
— 227.0 
Accrued Expenses and Other Liabilities
817.3 843.6 
Long-term Debt, Current and Non-current, at Amortized Cost1,386.9 1,121.9 
Total Liabilities
10,920.8 10,908.8 
Shareholders’ Equity:
Common Stock
6.4 6.4 
Paid-in Capital
1,812.7 1,790.7 
Retained Earnings
1,380.1 1,762.5 
Accumulated Other Comprehensive (Loss) Income(756.0)448.1 
Total Shareholders’ Equity
2,443.2 4,007.7 
Total Liabilities and Shareholders’ Equity
$13,364.0 $14,916.5 

7

Unaudited selected financial information for the Specialty Property & Casualty Insurance segment follows.
Three Months EndedYear Ended
(Dollars in Millions)Dec 31,
2022		Dec 31,
2021		Dec 31,
2022		Dec 31,
2021
Results of Operations
Net Premiums Written$922.3 $979.0 $3,934.4 $4,057.3 
Earned Premiums$981.6 $1,032.3 $4,046.4 $3,948.5 
Net Investment Income37.9 37.8 140.7 152.5 
Change in Value of Alternative Energy Partnership Investments0.7 (6.7)(9.9)(29.0)
Other Income1.0 1.0 6.0 4.1 
Total Revenues1,021.2 1,064.4 4,183.2 4,076.1 
Incurred Losses and LAE related to:
Current Year:
Non-catastrophe Losses and LAE859.3 1,028.5 3,569.2 3,480.3 
Catastrophe Losses and LAE(0.1)2.5 23.0 15.7 
Prior Years:
Non-catastrophe Losses and LAE10.2 (7.6)(14.6)97.4 
Catastrophe Losses and LAE(0.1)— 0.6 0.3 
Total Incurred Losses and LAE869.3 1,023.4 3,578.2 3,593.7 
Insurance Expenses198.4 204.4 801.9 774.5 
Operating Income (Loss)(46.5)(163.4)(196.9)(292.1)
Income Tax Benefit (Expense)11.4 38.2 49.5 96.0 
Segment Net Operating Income (Loss)$(35.1)$(125.2)$(147.4)$(196.1)
Ratios Based On Earned Premiums
Current Year Non-catastrophe Losses and LAE Ratio87.6 %99.6 %88.2 %88.1 %
Current Year Catastrophe Losses and LAE Ratio— 0.2 0.6 0.4 
Prior Years Non-catastrophe Losses and LAE Ratio1.0 (0.7)(0.4)2.5 
Prior Years Catastrophe Losses and LAE Ratio— — — — 
Total Incurred Loss and LAE Ratio88.6 99.1 88.4 91.0 
Insurance Expense Ratio20.2 19.8 19.8 19.6 
Combined Ratio108.8 %118.9 %108.2 %110.6 %
Underlying Combined Ratio1
Current Year Non-catastrophe Losses and LAE Ratio87.6 %99.6 %88.2 %88.1 %
Insurance Expense Ratio20.2 19.8 19.8 19.6 
Underlying Combined Ratio1
107.8 %119.4 %108.0 %107.7 %
Non-GAAP Measure Reconciliation
Combined Ratio108.8 %118.9 %108.2 %110.6 %
Less:
Current Year Catastrophe Losses and LAE Ratio— 0.2 0.6 0.4 
Prior Years Non-catastrophe Losses and LAE Ratio1.0 (0.7)(0.4)2.5 
Prior Years Catastrophe Losses and LAE Ratio— — — — 
Underlying Combined Ratio1
107.8 %119.4 %108.0 %107.7 %
8

Unaudited selected financial information for the Preferred Property & Casualty Insurance segment follows.
Three Months EndedYear Ended
(Dollars in Millions)Dec 31,
2022		Dec 31,
2021		Dec 31,
2022		Dec 31,
2021
Results of Operations
Net Premiums Written$115.1 $153.2 $527.1 $642.0 
Earned Premiums$140.7 $162.6 $595.5 $651.7 
Net Investment Income13.5 17.1 49.7 68.6 
Change in Value of Alternative Energy Partnership Investments0.3 (3.8)(4.7)(16.3)
Total Revenues154.5 175.9 640.5 704.0 
Incurred Losses and LAE related to:
Current Year:
Non-catastrophe Losses and LAE108.9 122.4 442.3 450.4 
Catastrophe Losses and LAE8.8 7.5 54.5 79.1 
Prior Years:
Non-catastrophe Losses and LAE(0.8)8.4 2.8 13.5 
Catastrophe Losses and LAE(1.5)(2.0)(6.2)(5.6)
Total Incurred Losses and LAE115.4 136.3 493.4 537.4 
Insurance Expenses41.1 51.6 183.5 206.4 
Operating Income (Loss)(2.0)(12.0)(36.4)(39.8)
Income Tax Benefit (Expense)1.1 4.6 10.5 27.3 
Segment Net Operating Income (Loss)$(0.9)$(7.4)$(25.9)$(12.5)
Ratios Based On Earned Premiums
Current Year Non-catastrophe Losses and LAE Ratio77.4 %75.2 %74.2 %69.2 %
Current Year Catastrophe Losses and LAE Ratio6.3 4.6 9.2 12.1 
Prior Years Non-catastrophe Losses and LAE Ratio(0.6)5.2 0.5 2.1 
Prior Years Catastrophe Losses and LAE Ratio(1.1)(1.2)(1.0)(0.9)
Total Incurred Loss and LAE Ratio82.0 83.8 82.9 82.5 
Insurance Expense Ratio29.2 31.7 30.8 31.7 
Combined Ratio111.2 %115.5 %113.7 %114.2 %
Underlying Combined Ratio1
Current Year Non-catastrophe Losses and LAE Ratio77.4 %75.2 %74.2 %69.2 %
Insurance Expense Ratio29.2 31.7 30.8 31.7 
Underlying Combined Ratio1
106.6 %106.9 %105.0 %100.9 %
Non-GAAP Measure Reconciliation
Combined Ratio111.2 %115.5 %113.7 %114.2 %
Less:
Current Year Catastrophe Losses and LAE Ratio6.3 4.6 9.2 12.1 
Prior Years Non-catastrophe Losses and LAE Ratio(0.6)5.2 0.5 2.1 
Prior Years Catastrophe Losses and LAE Ratio(1.1)(1.2)(1.0)(0.9)
Underlying Combined Ratio1
106.6 %106.9 %105.0 %100.9 %
9

Unaudited selected financial information for the Life & Health Insurance segment follows.
Three Months EndedYear Ended
(Dollars in Millions)Dec 31,
2022		Dec 31,
2021		Dec 31,
2022		Dec 31,
2021
Results of Operations
Earned Premiums$144.7 $164.2 $624.4 $653.5 
Net Investment Income52.6 50.8 216.5 202.7 
Change in Value of Alternative Energy Partnership Investments0.3 (3.7)(5.3)(15.8)
Other Income (Loss)0.2 (1.6)(0.6)(1.3)
Total Revenues197.8 209.7 835.0 839.1 
Policyholders’ Benefits and Incurred Losses and LAE93.4 116.2 432.6 469.7 
Insurance Expenses80.7 89.5 342.9 358.9 
Operating Income (Loss)23.7 4.0 59.5 10.5 
Income Tax Benefit (Expense)(2.9)1.1 (5.3)17.7 
Segment Net Operating Income (Loss)$20.8 $5.1 $54.2 $28.2 
Use of Non-GAAP Financial Measures
Adjusted Consolidated Net Operating Income (Loss)1 is an after-tax, non-GAAP financial measure and is computed by excluding from Net Income (Loss) the after-tax impact of:
(i) Income (Loss) from Change in Fair Value of Equity and Convertible Securities;
(ii) Net Realized Investment Gains (Losses);
(iii) Impairment Losses;
(iv) Acquisition and Disposition Related Transaction, Integration, Restructuring and Other Costs;
(v) Debt Extinguishment, Pension and Other Charges; and
(vi) Significant non-recurring or infrequent items that may not be indicative of ongoing operations

Significant non-recurring items are excluded when (a) the nature of the charge or gain is such that it is reasonably unlikely to recur within two years, and (b) there has been no similar charge or gain within the prior two years. The most directly comparable GAAP financial measure is Net Income (Loss). There were no applicable significant non-recurring items that Kemper excluded from the calculation of Adjusted Consolidated Net Operating Income (Loss)1 for the three and twelve months ended December 31, 2022 or 2021.

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 Investment Gains (Losses) and Impairment Losses related to investments included in Kemper’s results may vary significantly between periods and are generally driven by business decisions and external economic developments such as capital market conditions that impact the values of the Kemper’s investments, the timing of which is unrelated to the insurance underwriting process. Acquisition and Disposition Related Transaction, Integration, Restructuring and Other Costs may vary significantly between periods and are generally driven by the timing of acquisitions and business decisions which are unrelated to the insurance underwriting process. Debt Extinguishment, Pension and Other Charges relate to (i) loss from early extinguishment of debt, which is driven by Kemper’s financing and refinancing decisions and capital needs, as well as external economic developments such as debt market conditions, the timing of which is unrelated to the insurance underwriting process; (ii) settlement of pension plan obligations which are business decisions made by Kemper, the timing of which is unrelated to the underwriting process; and (iii) other charges that are non-standard, not part of the ordinary course of business, and unrelated to the insurance underwriting process. Significant non-recurring items are excluded because, by their nature, they are not indicative of the Kemper’s business or economic trends. The preceding non-GAAP financial measures should not be considered a substitute for the
10

comparable GAAP financial measures, as they do not fully recognize the overall profitability of the Kemper’s businesses.
11

A reconciliation of Net Income (Loss) to Adjusted Consolidated Net Operating Income (Loss) 1 for the three and twelve months ended December 31, 2022 and 2021 is presented below.
Three Months EndedYear Ended
(Dollars in Millions) (Unaudited)Dec 31,
2022		Dec 31,
2021		Dec 31,
2022		Dec 31,
2021
Net Income (Loss)$(55.5)$(105.8)$(301.2)$(120.5)
Less Net Income (Loss) From:
Change in Fair Value of Equity and Convertible Securities— 17.5 (63.1)90.5 
Net Realized Investment Gains (Losses)3.1 17.2 3.4 51.2 
Impairment Losses(2.9)(2.5)(20.4)(8.7)
Acquisition and Disposition Related Transaction, Integration, Restructuring and Other Costs(29.1)(7.2)(61.3)(34.7)
Debt Extinguishment, Pension and Other Charges— — (2.9)— 
Adjusted Consolidated Net Operating Income (Loss) 1
$(26.6)$(130.8)$(156.9)$(218.8)
Diluted Adjusted Consolidated Net Operating Income (Loss) Per Unrestricted Share1 is a non-GAAP financial measure computed by dividing Adjusted Consolidated Net Operating Income (Loss)1 attributed to unrestricted shares by the weighted-average unrestricted shares and equivalent shares outstanding. The most directly comparable GAAP financial measure is Diluted Net Income (Loss) Per Unrestricted Share.
A reconciliation of Diluted Net Income (Loss) Per Unrestricted Share to Diluted Adjusted Consolidated Net Operating Income (Loss) Per Unrestricted Share1 for the three and twelve months ended December 31, 2022 and 2021 is presented below.
 Three Months EndedYear Ended
(Unaudited)Dec 31,
2022		Dec 31,
2021		Dec 31,
2022		Dec 31,
2021
Diluted Net Income (Loss) Per Unrestricted Share$(0.87)$(1.66)$(4.72)$(1.87)
Less Net Income (Loss) Per Unrestricted Share From:
Change in Fair Value of Equity and Convertible Securities— 0.27 (0.99)1.41 
Net Realized Investment Gains (Losses)0.05 0.27 0.05 0.80 
Impairment Losses(0.05)(0.04)(0.32)(0.14)
Acquisition and Disposition Related Transaction, Integration, Restructuring and Other Costs(0.46)(0.11)(0.95)(0.54)
Debt Extinguishment, Pension and Other Charges— — (0.05)— 
Diluted Adjusted Consolidated Net Operating Income (Loss) Per Unrestricted Share1
$(0.41)$(2.05)$(2.46)$(3.40)
Book Value Per Share Excluding Net Unrealized (Gains) Losses on Fixed Maturities1 is a calculation that uses a non-GAAP financial measure. It is calculated by dividing shareholders’ equity after excluding the after-tax impact of net unrealized (gains) losses 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) losses 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.

12

A reconciliation of the numerator used in the computation of Book Value Per Share Excluding Net Unrealized (Gains) Losses on Fixed Maturities1 and Book Value Per Share at December 31, 2022 and December 31, 2021 is presented below.
(Dollars in Millions) (Unaudited)Dec 31,
2022		Dec 31,
2021
Shareholders’ Equity$2,443.2 $4,007.7 
Less: Net Unrealized Gains (Losses) on Fixed Maturities(716.8)502.6 
Shareholders’ Equity Excluding Net Unrealized (Gains) Losses on Fixed Maturities1
$3,160.0 $3,505.1 
Underlying Combined Ratio1 is a non-GAAP financial measure. It is computed by adding the Current Year Non-catastrophe Losses and LAE Ratio with the Insurance Expense Ratio. The most directly comparable GAAP financial measure is the Combined Ratio, which is computed by adding Total Incurred Losses and LAE Ratio, including the impact of catastrophe losses and loss and LAE reserve development from prior years, with the Insurance Expense Ratio.
Kemper believes Underlying Losses and LAE and the Underlying Combined Ratio are useful to investors and uses these financial measures to reveal the trends in Kemper’s Property & Casualty Insurance segment that may be obscured by catastrophe losses and prior-year reserve development. These catastrophe losses may cause the Kemper’s loss trends to vary significantly between periods as a result of their incidence of occurrence and magnitude and can have a significant impact on incurred losses and LAE and the Combined Ratio. Prior-year reserve developments are caused by unexpected loss development on historical reserves. Because reserve development relates to the re-estimation of losses from earlier periods, it has no bearing on the performance of the Kemper’s insurance products in the current period. Kemper believes it is useful for investors to evaluate these components separately and in the aggregate when reviewing the Kemper’s underwriting performance.

13

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

A reconciliation of the As Adjusted for Acquisitions1 non-GAAP financial measures used in this press release to the comparable GAAP financial measure for the three months ended December 31, 2022 is presented below.
(Dollars in Millions, Except Per Share Amounts) (Unaudited)
Kemper Consolidated GAAP Financial MeasureLess Impact of Purchase Accounting Adjustments
As Adjusted for Acquisitions1
Net Income (Loss)$(55.5)$(3.0)$(52.5)
Net Income (Loss) Per Share - Diluted$(0.87)$(0.05)$(0.82)
Specialty Property & Casualty Insurance Segment:
Earned Premiums$981.6 $— $981.6 
Segment Net Operating Income (Loss)$(35.1)$(3.0)$(32.1)
Specialty Personal Automobile Insurance:
Earned Premiums$830.4 $— $830.4 
Segment Net Operating Income (Loss)$(49.5)$(2.7)$(46.8)
A reconciliation of the As Adjusted for Acquisitions1 non-GAAP financial measures used in this press release to the comparable GAAP financial measure for the three months ended December 31, 2021 is presented below.
(Dollars in Millions, Except Per Share Amounts) (Unaudited)
Kemper Consolidated GAAP Financial MeasureLess Impact of Purchase Accounting Adjustments
As Adjusted for Acquisitions1
Net Income (Loss)$(105.8)$(4.5)$(101.3)
Net Income (Loss) Per Share - Diluted$(1.66)$(0.07)$(1.59)
Specialty Property & Casualty Insurance Segment:
Earned Premiums$1,032.3 $— $1,032.3 
Segment Net Operating Income (Loss)$(125.2)$(4.8)$(120.4)
Specialty Personal Automobile Insurance:
Earned Premiums$918.1 $— $918.1 
Segment Net Operating Income (Loss)$(129.7)$(4.5)$(125.2)

14

Conference Call
Kemper will host its conference call to discuss fourth quarter 2022 results on Thursday, February 2nd, at 5:00 p.m. Eastern (4:00 p.m. Central). The conference call will be accessible via the internet and by telephone at 844.200.6205, access code 906245. To listen via webcast, register online at the investor section of kemper.com at least 15 minutes prior to the webcast to download and install any necessary software.
A replay of the call will be available online at the investor section of kemper.com.
More detailed financial information can be found in Kemper’s Investor Financial Supplement and Earnings Call Presentation for the fourth quarter of 2022, which is available at the investor section of kemper.com.
About Kemper
The Kemper family of companies is one of the nation’s leading specialized insurers. With approximately $13 billion in assets, Kemper is improving the world of insurance by providing affordable and easy-to-use personalized solutions to individuals, families and businesses through its Auto, Personal Insurance, and Life brands. Kemper serves over 5.3 million policies, is represented by approximately 29,000 agents and brokers, and has approximately 9,500 associates dedicated to meeting the ever-changing needs of its customers.
Learn more about Kemper at kemper.com.

Caution Regarding Forward-Looking Statements

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

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

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

Kemper assumes no obligation to publicly correct or update any forward-looking statements as a result of events or developments subsequent to the date of this press release, including any such statements related to the Pandemic.
###
15


Contacts

Investors: Karen Guerra

312.661.4930 or investors@kemper.com
Media: Barbara Ciesemier
312.661.4521 or bciesemier@kemper.com

16
Exhibit 99.2

kemperlogocolorwebfinala051a.jpg

Investor Supplement
Fourth Quarter 2022
The financial statements and financial exhibits included herein are unaudited. These financial statements and exhibits should be read in conjunction with the Company’s periodic reports on Forms 10-K, 10-Q and 8-K filed with the U.S. Securities and Exchange Commission (the “SEC”). The results of operations for interim periods should not be considered indicative of results to be expected for the full year.
Caution Regarding Forward-Looking Statements

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

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

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

Kemper assumes no obligation to publicly correct or update any forward-looking statements as a result of events or developments subsequent to the date of this Investor Supplement, including any such statements related to the Pandemic.



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



Kemper Corporation
Investor Supplement
Fourth Quarter 2022
Table of Contents
 
 Page
Consolidated Financial Highlights3
Consolidated Statements of Income (Loss)4
Consolidated Balance Sheets5
Consolidated Statements of Cash Flows6-7
Capital Metrics8-9
Debt Outstanding, FHLB Advances and Ratings
10
Segment Summary Results:
Revenues11
Operating Income (Loss)12
Net Operating Income (Loss)12
Catastrophe Frequency and Severity13
Specialty Property & Casualty Insurance Segment - Results of Operations and Selected Financial Information14-15
Personal Automobile Insurance16
Commercial Automobile Insurance17
Preferred Property & Casualty Insurance Segment - Results of Operations and Selected Financial Information18-19
Personal Automobile Insurance20
Homeowners and Other Personal Insurance21
Homeowners Insurance22
Other Personal Insurance23
Life & Health Insurance Segment - Results of Operations and Selected Financial Information24
Life Insurance25
Accident and Health Insurance25
Property Insurance26
Expenses27
Details of Investment Performance28
Details of Invested Assets29-30
Investment Concentration31
Municipal Bond Securities32
Investments in Limited Liability Companies and Limited Partnerships33
Definitions of Non-GAAP Financial Measures34-35
As Adjusted for Acquisition36-39
 






Kemper Corporation
Consolidated Financial Highlights
(Dollars in Millions, Except Per Share Amounts)
(Unaudited)
 Three Months EndedYear Ended
Dec 31,
2022		Sep 30, 2022Jun 30, 2022Mar 31, 2022Dec 31, 2021Sep 30, 2021Jun 30, 2021Mar 31, 2021Dec 31,
2022		Dec 31,
2021
For Period Ended
Earned Premiums
$1,267.0 $1,307.0 $1,353.7 $1,338.6 $1,359.1 $1,356.1 $1,337.7 $1,200.8 $5,266.3 $5,253.7 
Net Investment Income
106.3 97.8 118.5 100.0 108.4 101.9 113.9 103.1 422.6 427.3 
Change in Value of Alternative Energy Partnership Investments1.3 0.4 (4.9)(16.7)(14.3)(23.8)(7.7)(15.4)(19.9)(61.2)
Other Income
1.9 4.0 0.9 2.4 — 1.5 1.8 1.5 9.2 4.8 
Income (Loss) from Change in Fair Value of Equity and Convertible Securities
— (11.2)(40.5)(28.2)22.2 (0.6)40.8 52.2 (79.9)114.6 
Net Realized Investment Gains (Losses)0.2 (20.4)6.1 (7.4)18.5 9.5 16.0 9.8 (21.5)53.8 
Total Revenues
$1,376.7 $1,377.6 $1,433.8 $1,388.7 $1,493.9 $1,444.6 $1,502.5 $1,352.0 $5,576.8 $5,793.0 
Net Income (Loss)$(55.5)$(76.2)$(74.7)$(94.8)$(105.8)$(75.3)$(62.6)$123.2 $(301.2)$(120.5)
Adjusted Consolidated Net Operating Income (Loss) 1
$(26.6)$(30.5)$(39.7)$(60.1)$(130.8)$(75.8)$(99.4)$87.2 $(156.9)$(218.8)
Per Unrestricted Common Share Amounts:
Basic:
Net Income (Loss)$(0.87)$(1.19)$(1.17)$(1.49)$(1.66)$(1.18)$(0.97)$1.88 $(4.72)$(1.87)
Adjusted Consolidated Net Operating Income (Loss) 1
$(0.41)$(0.48)$(0.62)$(0.94)$(2.05)$(1.19)$(1.54)$1.33 $(2.46)$(3.40)
Diluted:
Net Income (Loss)$(0.87)$(1.19)$(1.17)$(1.49)$(1.66)$(1.18)$(0.97)$1.85 $(4.72)$(1.87)
Adjusted Consolidated Net Operating Income (Loss) 1
$(0.41)$(0.48)$(0.62)$(0.94)$(2.05)$(1.19)$(1.54)$1.31 $(2.46)$(3.40)
Dividends Paid to Shareholders Per Share
$0.31 $0.31 $0.31 $0.31 $0.31 $0.31 $0.31 $0.31 $1.24 $1.24 
At Period End
Total Assets
$13,364.0 $13,457.8 $13,953.0 $14,614.7 $14,916.5 $14,977.2 $14,950.7 $14,203.7 
Insurance Reserves
$6,310.9 $6,254.9 $6,326.4 $6,316.4 $6,313.6 $6,120.3 $5,982.4 $5,541.1 
Debt
$1,386.9 $1,386.4 $1,385.8 $1,385.2 $1,121.9 $1,122.1 $1,122.3 $1,122.6 
Shareholders’ Equity
$2,443.2 $2,437.6 $2,850.0 $3,394.5 $4,007.7 $4,151.2 $4,306.2 $4,339.1 
Shareholders’ Equity Excluding Goodwill1,2
$1,142.9 $1,138.8 $1,538.0 $2,082.5 $2,695.7 $2,839.2 $2,994.3 $3,225.1 
Common Shares Issued and Outstanding (In Millions)
63.913 63.884 63.850 63.800 63.685 63.652 63.636 65.016 
Book Value Per Share2
$38.23 $38.16 $44.64 $53.21 $62.93 $65.22 $67.67 $66.74 
Book Value Per Share Excluding Goodwill1,2
$17.88 $17.83 $24.09 $32.64 $42.33 $44.61 $47.05 $49.60 
Book Value Per Share Excluding Net Unrealized (Gains) Losses on Fixed Maturities1,2
$49.44 $50.41 $52.03 $53.42 $55.04 $56.94 $58.39 $60.00 
Book Value Per Share Excluding Net Unrealized (Gains) Losses on Fixed Maturities and Goodwill1,2
$29.10 $30.08 $31.48 $32.86 $34.44 $36.33 $37.77 $42.87 
Debt to Total Capitalization2
36.2 %36.3 %32.7 %29.0 %21.9 %21.3 %20.7 %20.6 %
Rolling 12 Months Return on 5-point Average Shareholders Equity2,3
(10.0)%(10.4)%(9.4)%(8.4)%(2.8)%1.9 %6.4 %11.1 %
1 Non-GAAP Financial Measure. See page 34 for definition.
2 See Capital Metrics on pages 8-9 for detail calculations.
3 Rolling 12 Months Return on 5-point Average Shareholders Equity is calculated by taking the last 12 months of Net Income (Loss) divided by the 5-point average Shareholders’ Equity. The 5-point Average Shareholders’ Equity is calculated by using a 5-point quarter average of Shareholders’ Equity for the 12 month period.
3

Kemper Corporation
Consolidated Statements of Income (Loss)
(Dollars in Millions, Except Per Share Amounts)
(Unaudited)
 Three Months EndedYear Ended
 Dec 31,
2022		Sep 30, 2022Jun 30, 2022Mar 31, 2022Dec 31, 2021Sep 30, 2021Jun 30, 2021Mar 31, 2021Dec 31,
2022		Dec 31,
2021
Revenues:
Earned Premiums$1,267.0 $1,307.0 $1,353.7 $1,338.6 $1,359.1 $1,356.1 $1,337.7 $1,200.8 $5,266.3 $5,253.7 
Net Investment Income106.3 97.8 118.5 100.0 108.4 101.9 113.9 103.1 422.6 427.3 
Change in Value of Alternative Energy Partnership Investments1.3 0.4 (4.9)(16.7)(14.3)(23.8)(7.7)(15.4)(19.9)(61.2)
Other Income1.9 4.0 0.9 2.4 — 1.5 1.8 1.5 9.2 4.8 
Income (Loss) from Change in Fair Value of Equity and Convertible Securities— (11.2)(40.5)(28.2)22.2 (0.6)40.8 52.2 (79.9)114.6 
Net Realized Investment Gains (Losses)3.9 (12.1)11.0 1.5 21.7 10.1 19.2 13.8 4.3 64.8 
Impairment Losses(3.7)(8.3)(4.9)(8.9)(3.2)(0.6)(3.2)(4.0)(25.8)(11.0)
Total Revenues1,376.7 1,377.6 1,433.8 1,388.7 1,493.9 1,444.6 1,502.5 1,352.0 5,576.8 5,793.0 
Expenses:
Policyholders’ Benefits and Incurred Losses and Loss Adjustment Expenses1,078.3 1,102.4 1,170.3 1,153.4 1,276.0 1,211.2 1,224.1 889.5 4,504.4 4,600.8 
Insurance Expenses287.6 301.3 307.7 304.0 309.1 311.3 314.0 283.7 1,200.6 1,218.1 
Loss from Early Extinguishment of Debt— — — 3.7 — — — — 3.7 — 
Interest and Other Expenses86.5 63.5 53.5 54.1 56.2 51.9 54.1 57.2 257.6 219.4 
Total Expenses1,452.4 1,467.2 1,531.5 1,515.2 1,641.3 1,574.4 1,592.2 1,230.4 5,966.3 6,038.3 
Income (Loss) before Income Taxes(75.7)(89.6)(97.7)(126.5)(147.4)(129.8)(89.7)121.6 (389.5)(245.3)
Income Tax Benefit (Expense)20.2 13.4 23.0 31.7 41.6 54.5 27.1 1.6 88.3 124.8 
Net Income (Loss)$(55.5)$(76.2)$(74.7)$(94.8)$(105.8)$(75.3)$(62.6)$123.2 $(301.2)$(120.5)
Income (Loss) Per Unrestricted Share:
Basic$(0.87)$(1.19)$(1.17)$(1.49)$(1.66)$(1.18)$(0.97)$1.88 $(4.72)$(1.87)
Diluted$(0.87)$(1.19)$(1.17)$(1.49)$(1.66)$(1.18)$(0.97)$1.85 $(4.72)$(1.87)
Net Income (Loss) Per Unrestricted Share:
Basic$(0.87)$(1.19)$(1.17)$(1.49)$(1.66)$(1.18)$(0.97)$1.88 $(4.72)$(1.87)
Diluted$(0.87)$(1.19)$(1.17)$(1.49)$(1.66)$(1.18)$(0.97)$1.85 $(4.72)$(1.87)
Dividends Paid to Shareholders Per Share$0.31 $0.31 $0.31 $0.31 $0.31 $0.31 $0.31 $0.31 $1.24 $1.24 
Weighted Average Unrestricted Common Shares Outstanding (in Millions)63.888 63.853 63.816 63.744 63.655 63.628 64.377 65.425 63.826 64.264 
 
4

Kemper Corporation
Consolidated Balance Sheets
(Dollars in Millions)
(Unaudited)
Dec 31,
2022		Sep 30, 2022Jun 30, 2022Mar 31, 2022Dec 31, 2021Sep 30, 2021Jun 30, 2021Mar 31, 2021
Assets:
Investments:
Fixed Maturities at Fair Value$6,894.8 $6,577.1 $7,218.8 $7,783.9 $7,986.9 $7,885.1 $7,835.0 $7,479.4 
Equity Securities at Fair Value243.2 322.7 395.0 571.5 830.6 969.6 957.7 897.4 
Equity Method Limited Liability Investments217.0 226.0 228.9 230.0 241.9 255.1 245.5 219.2 
Alternative Energy Partnerships16.3 16.9 17.0 22.4 39.6 54.2 46.6 54.4 
Short-term Investments at Cost which Approximates Fair Value278.4 357.2 230.2 243.8 284.1 259.7 370.6 196.9 
Company-Owned Life Insurance
586.5 578.6 566.2 556.4 448.1 440.7 433.5 429.5 
Loans to Policyholders
283.4 283.2 282.3 284.7 286.2 289.6 291.7 295.1 
Other Investments269.9 274.2 276.9 275.4 270.0 268.3 261.7 250.8 
Total Investments8,789.5 8,635.9 9,215.3 9,968.1 10,387.4 10,422.3 10,442.3 9,822.7 
Cash212.4 249.2 348.6 297.3 148.2 119.8 105.1 547.4 
Receivables from Policyholders1,286.6 1,345.8 1,375.1 1,404.5 1,418.7 1,481.2 1,479.9 1,260.9 
Other Receivables262.6 228.7 206.5 203.4 207.3 207.3 214.9 225.4 
Deferred Policy Acquisition Costs625.6 634.7 680.5 680.0 677.6 676.6 652.7 611.7 
Goodwill1,300.3 1,298.8 1,312.0 1,312.0 1,312.0 1,312.0 1,311.9 1,114.0 
Current Income Tax Assets167.6 165.1 200.8 183.0 173.1 138.7 94.2 65.6 
Deferred Income Tax Assets189.4 182.0 57.1 — — — — — 
Assets Held-for-Sale— 172.8 — — — — — — 
Other Assets530.0 544.8 557.1 566.4 592.2 619.3 649.7 556.0 
Total Assets$13,364.0 $13,457.8 $13,953.0 $14,614.7 $14,916.5 $14,977.2 $14,950.7 $14,203.7 
Liabilities and Shareholders’ Equity:
Insurance Reserves:
Life and Health$3,554.0 $3,534.6 $3,568.0 $3,556.3 $3,540.9 $3,524.1 $3,551.6 $3,541.6 
Property and Casualty2,756.9 2,720.3 2,758.4 2,760.1 2,772.7 2,596.2 2,430.8 1,999.5 
Total Insurance Reserves6,310.9 6,254.9 6,326.4 6,316.4 6,313.6 6,120.3 5,982.4 5,541.1 
Unearned Premiums1,704.4 1,794.8 1,854.4 1,890.5 1,898.7 1,965.7 1,968.1 1,713.0 
Policyholder Contract Liabilities701.3 704.0 704.5 655.0 504.0 481.8 442.7 466.5 
Deferred Income Tax Liabilities— — — 69.6 227.0 242.4 269.6 227.6 
Liabilities Held-for-Sale— 84.8 — — — — — — 
Accrued Expenses and Other Liabilities817.3 795.3 831.9 903.5 843.6 893.7 859.4 793.8 
Long-term Debt, Current and Non-current, at Amortized Cost1,386.9 1,386.4 1,385.8 1,385.2 1,121.9 1,122.1 1,122.3 1,122.6 
Total Liabilities10,920.8 11,020.2 11,103.0 11,220.2 10,908.8 10,826.0 10,644.5 9,864.6 
Shareholders’ Equity:
Common Stock6.4 6.4 6.4 6.4 6.4 6.4 6.4 6.5 
Paid-in Capital1,812.7 1,822.2 1,812.5 1,803.1 1,790.7 1,777.0 1,770.9 1,802.1 
Retained Earnings1,380.1 1,455.6 1,551.9 1,647.3 1,762.5 1,888.4 1,985.9 2,140.0 
Accumulated Other Comprehensive (Loss) Income(756.0)(846.6)(520.8)(62.3)448.1 479.4 543.0 390.5 
Total Shareholders’ Equity2,443.2 2,437.6 2,850.0 3,394.5 4,007.7 4,151.2 4,306.2 4,339.1 
Total Liabilities and Shareholders’ Equity$13,364.0 $13,457.8 $13,953.0 $14,614.7 $14,916.5 $14,977.2 $14,950.7 $14,203.7 
5

Kemper Corporation
Consolidated Statements of Cash Flows
(Dollars in Millions)
 (Unaudited)
 Year Ended
 Dec 31,
2022		Dec 31,
2021
Cash Flows from Operating Activities:
Net (Losses) Income$(301.2)$(120.5)
Adjustments to Reconcile Net (Loss) Income to Net Cash Provided by (Used in) Operating Activities:
Net Realized Investment Gains(4.3)(64.8)
Impairment Losses25.8 11.0 
Depreciation and Amortization of Property, Equipment and Software50.5 46.3 
Amortization of Intangible Assets Acquired20.4 53.5 
Loss from Early Extinguishment of Debt3.7 — 
Change in Accumulated Undistributed Earnings of Equity Method Limited Liability Investments(9.5)(33.5)
Loss from Change in Value of Alternative Energy Partnership Investments19.9 61.2 
Decrease (Increase) in Value of Equity and Convertible Securities79.9 (114.6)
Changes in:
Receivables from Policyholders129.4 (75.2)
Reinsurance Recoverables(1.9)20.6 
Deferred Policy Acquisition Costs13.8 (88.3)
Insurance Reserves45.4 623.1 
Unearned Premiums(183.5)105.9 
Income Taxes(87.5)(163.1)
Other Assets and Liabilities(21.3)89.1 
Net Cash (Used) Provided by Operating Activities(220.4)350.7 
Cash Flows from Investing Activities:
Proceeds from the Sales, Calls and Maturities of Fixed Maturities1,308.7 1,388.9 
Proceeds from the Sales or Paydowns of Investments:
Equity Securities536.8 316.6 
Real Estate Investments— 8.0 
Mortgage Loans91.3 70.8 
Other Investments52.1 47.5 
Purchases of Investments:
Fixed Maturities(1,818.9)(1,825.4)
Equity Securities(59.7)(124.3)
Real Estate Investments(3.1)(5.1)
Corporate-Owned Life Insurance(110.0)(100.0)
Mortgage Loans(81.1)(119.9)
Other Investments(13.0)(104.9)
Net Sales (Purchases) of Short-term Investments6.1 687.2 
Acquisition of Business, Net of Cash Acquired— (316.6)
Sale of Infinity Security, Net of Cash Disposed4.9 — 
Sale of Reserve National, Net of Cash Disposed9.9 — 
Acquisition of Software and Long-lived Assets(30.8)(57.8)
Other8.5 16.8 
Net Cash Used by Investing Activities(98.3)(118.2)
6

Kemper Corporation
Consolidated Statements of Cash Flows
(Dollars in Millions)
 (Unaudited)
 Year Ended
 Dec 31,
2022		Dec 31,
2021
Net Cash Provided (Used) by Investing Activities (Carryforward from page 6)$(98.3)$(118.2)
Cash Flows from Financing Activities:
Repayment of Long-term Debt(280.0)(50.0)
Proceeds from Issuance of 3.80% Senior Notes due February 23, 2032
396.3 — 
Issuance Fees on 3.80% Senior Notes due February 23, 2032
(1.2)— 
Proceeds from Issuance of 5.875% Fixed-Rate Reset Junior Subordinated Debentures Due 2062
145.6 — 
Issuance Fees on 5.875% Fixed-Rate Reset Junior Subordinated Debentures Due 2062
(0.9)— 
Proceeds from Policyholder Contract Obligations416.5 386.8 
Repayment of Policyholder Contract Obligations(219.2)(394.0)
Proceeds from Shares Issued under Employee Stock Purchase Plan4.9 5.4 
Common Stock Repurchases— (161.7)
Dividends and Dividend Equivalents Paid(79.7)(80.6)
Other0.6 3.7 
Net Cash Provided (Used) by Financing Activities382.9 (290.4)
Net increase (decrease) in cash64.2 (57.9)
Cash, Beginning of Year148.2 206.1 
Cash, End of Period$212.4 $148.2 
7


Kemper Corporation
Capital Metrics
(Dollars and Shares in Millions, Except Per Share Amounts)
(Unaudited)
 Dec 31,
2022		Sep 30, 2022Jun 30, 2022Mar 31, 2022Dec 31, 2021Sep 30, 2021Jun 30, 2021Mar 31, 2021
Book Value Per Share   
Numerator
Shareholders’ Equity$2,443.2 $2,437.6 $2,850.0 $3,394.5 $4,007.7 $4,151.2 $4,306.2 $4,339.1 
Less: Goodwill(1,300.3)(1,298.8)(1,312.0)(1,312.0)(1,312.0)(1,312.0)(1,311.9)(1,114.0)
Shareholders’ Equity Excluding Goodwill1
$1,142.9 $1,138.8 $1,538.0 $2,082.5 $2,695.7 $2,839.2 $2,994.3 $3,225.1 
Shareholders’ Equity$2,443.2 $2,437.6 $2,850.0 $3,394.5 $4,007.7 $4,151.2 $4,306.2 $4,339.1 
Less: Net Unrealized (Gains) Losses on Fixed Maturities716.8 782.7 472.2 13.7 (502.6)(526.9)(590.5)(438.0)
Shareholders’ Equity Excluding Net Unrealized (Gains) Losses on Fixed Maturities1
$3,160.0 $3,220.3 $3,322.2 $3,408.2 $3,505.1 $3,624.3 $3,715.7 $3,901.1 
Less: Goodwill(1,300.3)(1,298.8)(1,312.0)(1,312.0)(1,312.0)(1,312.0)(1,311.9)(1,114.0)
Shareholders’ Equity Excluding Net Unrealized (Gains) Losses on Fixed Maturities and Goodwill1
$1,859.7 $1,921.5 $2,010.2 $2,096.2 $2,193.1 $2,312.3 $2,403.8 $2,787.1 
Denominator
Common Shares Issued and Outstanding63.913 63.884 63.850 63.800 63.685 63.652 63.636 65.016 
Book Value Per Share$38.23 $38.16 $44.64 $53.21 $62.93 $65.22 $67.67 $66.74 
Book Value Per Share Excluding Goodwill1
$17.88 $17.83 $24.09 $32.64 $42.33 $44.61 $47.05 $49.60 
Book Value Per Share Excluding Net Unrealized (Gains) Losses on Fixed Maturities1
$49.44 $50.41 $52.03 $53.42 $55.04 $56.94 $58.39 $60.00 
Book Value Per Share Excluding Net Unrealized (Gains) Losses on Fixed Maturities and Goodwill1
$29.10 $30.08 $31.48 $32.86 $34.44 $36.33 $37.77 $42.87 
Return on Shareholders’ Equity
Numerator
Rolling 12 Months Net Income$(301.2)$(351.5)$(350.6)$(338.5)$(120.5)$82.8 $280.4 $469.1 
Denominator (5-point Average)
5-point Average Shareholders’ Equity$3,026.6 $3,368.2 $3,741.9 $4,039.7 $4,273.5 $4,341.5 $4,348.8 $4,239.7 
Rolling 12 Months Return on Average Shareholders' Equity (5-point Average)(10.0)%(10.4)%(9.4)%(8.4)%(2.8)%1.9 %6.4 %11.1 %
Return on Shareholders’ Equity Excluding Goodwill1
Denominator (5-point Average)
5-point Average Shareholders’ Equity Excluding Goodwill1
$1,719.6 $2,058.8 $2,429.9 $2,767.4 $3,040.7 $3,148.3 $3,195.2 $3,125.7 
Rolling 12 Months Return on Average Shareholders' Equity Excluding Goodwill (5-point Average)1
(17.5)%(17.1)%(14.4)%(12.2)%(4.0)%2.6 %8.8 %15.0 %
Return on Shareholders’ Equity Excluding Net Unrealized (Gains) Losses on Fixed Maturities1
Denominator (5-point Average)
5-point Average Shareholders’ Equity Excluding Net Unrealized (Gains) Losses on Fixed Maturities1
$3,323.2 $3,416.0 $3,515.1 $3,630.9 $3,717.1 $3,756.8 $3,751.8 $3,708.5 
 Rolling 12 Months Return on Average Shareholders' Equity Excluding Net Unrealized (Gains) Losses on Fixed Maturities (5-point Average)1
(9.1)%(10.3)%(10.0)%(9.3)%(3.2)%2.2 %7.5 %12.6 %
Return on Shareholders’ Equity Excluding Net Unrealized (Gains) Losses on Fixed Maturities and Goodwill1
Denominator (5-point Average)
5-point Average Shareholders’ Equity Excluding Net Unrealized (Gains) Losses on Fixed Maturities and Goodwill1
$2,016.1 $2,106.7 $2,203.1 $2,358.5 $2,484.3 $2,563.7 $2,598.3 $2,594.5 
 Rolling 12 Months Return on Average Shareholders' Equity Excluding Net Unrealized (Gains) Losses on Fixed Maturities and Goodwill (5-point Average)1
(14.9)%(16.7)%(15.9)%(14.4)%(4.9)%3.2 %10.8 %18.1 %
1 Non-GAAP financial measure. See definitions beginning on page 34.
8


Kemper Corporation
Capital Metrics
(Dollars and Shares in Millions, Except Per Share Amounts)
(Unaudited)
 Dec 31,
2022		Sep 30, 2022Jun 30, 2022Mar 31, 2022Dec 31, 2021Sep 30, 2021Jun 30, 2021Mar 31, 2021
Debt and Total Capitalization
Debt$1,386.9 $1,386.4 $1,385.8 $1,385.2 $1,121.9 $1,122.1 $1,122.3 $1,122.6 
Shareholders’ Equity2,443.2 2,437.6 2,850.0 3,394.5 4,007.7 4,151.2 4,306.2 4,339.1 
Total Capitalization$3,830.1 $3,824.0 $4,235.8 $4,779.7 $5,129.6 $5,273.3 $5,428.5 $5,461.7 
Ratio of Debt to Shareholders’ Equity56.8 %56.9 %48.6 %40.8 %28.0 %27.0 %26.1 %25.9 %
Ratio of Debt to Total Capitalization36.2 %36.3 %32.7 %29.0 %21.9 %21.3 %20.7 %20.6 %
Debt$1,386.9 $1,386.4 $1,385.8 $1,385.2 $1,121.9 $1,122.1 $1,122.3 $1,122.6 
Shareholders’ Equity2,443.2 2,437.6 2,850.0 3,394.5 4,007.7 4,151.2 4,306.2 4,339.1 
Less: Accumulated Other Comprehensive Income (Loss)(756.0)(846.6)(520.8)(62.3)448.1 479.4 543.0 390.5 
Shareholders’ Equity Excluding Accumulated Other Comprehensive Income (Loss)$3,199.2 $3,284.2 $3,370.8 $3,456.8 $3,559.6 $3,671.8 $3,763.2 $3,948.6 
Total Capitalization Excluding Accumulated Other Comprehensive Income (Loss)$4,586.1 $4,670.6 $4,756.6 $4,842.0 $4,681.5 $4,793.9 $4,885.5 $5,071.2 
Ratio of Debt to Shareholders’ Equity Excluding Accumulated Other Comprehensive Income (Loss)43.4 %42.2 %41.1 %40.1 %31.5 %30.6 %29.8 %28.4 %
Ratio of Debt to Total Capitalization Excluding Accumulated Other Comprehensive Income (Loss)30.2 %29.7 %29.1 %28.6 %24.0 %23.4 %23.0 %22.1 %
Parent Company Liquidity
Kemper Holding Company Cash and Investments1
$417.6 $449.8 $275.9 $318.3 $233.9 $330.6 $214.8 $607.1 
Borrowings Available Under Credit Agreement600.0 600.0 600.0 600.0 400.0 400.0 400.0 400.0 
Parent Company Liquidity$1,017.6 $1,049.8 $875.9 $918.3 $633.9 $730.6 $614.8 $1,007.1 
Capital Returned to Shareholders
Cash Dividends Paid 2
$20.1 $20.1 $20.6 $19.6 $19.9 $19.7 $20.4 $21.0 
1 Includes Kemper's direct non-insurance subsidiaries
2 Three Months Ended
 
9


Kemper Corporation
Debt Outstanding, FHLB Advances and Ratings
(Dollars in Millions)
(Unaudited)
Dec 31,
2022		Sep 30, 2022Jun 30, 2022Mar 31, 2022Dec 31, 2021Sep 30, 2021Jun 30, 2021Mar 31, 2021
Kemper Corporation:
Senior Notes at Amortized Cost:
5.000% Senior Notes due September 19, 2022— $— $— $— $276.7 $277.1 $277.6 $277.9 
4.350% Senior Notes due February 15, 2025449.3 449.3 449.2 449.1 449.0 448.9 448.8 448.9 
2.400% Senior Notes due September 30, 2030396.6 396.5 396.4 396.3 396.2 396.1 395.9 395.8 
3.800% Senior Notes due 2032395.5 395.3 395.2 395.1 — — — — 
5.875% Fixed-Rate Reset Junior Subordinated Debentures Due 2062 at Amortized Cost$145.5 145.3 145.0 144.7 — — — — 
Long-term Debt Outstanding$1,386.9 $1,386.4 $1,385.8 $1,385.2 $1,121.9 $1,122.1 $1,122.3 $1,122.6 
Federal Home Loan Bank Advances to Insurance Subsidiaries:
Reported as Policyholder Contract Liabilities:
Federal Home Loan Bank of Chicago$601.0 $602.6 $602.8 $553.1 $401.9 $378.9 $382.8 $407.5 
Reported as Debt Outstanding:
Federal Home Loan Bank of Dallas$— $— $— $— $— $— $— $— 
Federal Home Loan Bank of Chicago$— $— $— $— $— $— $— $— 
Federal Home Loan Bank of San Francisco$— $— $— $— $— $— $— $— 
 A.M. BestMoody’sS&PFitch
As of Date of Financial Supplement
Kemper Debt Ratings:
Senior Unsecured Debtbbb-Baa3BBBBBB
Junior Unsecured DebtbbBa1BB+BB+
Insurance Company Financial Strength Ratings:
Trinity Universal Insurance Company
A-A3AA
United Insurance Company of America
A-A3A-A-





10


Kemper Corporation
Segment Revenues
(Dollars in Millions)
(Unaudited)
 Three Months EndedYear Ended
 Dec 31,
2022		Sep 30, 2022Jun 30, 2022Mar 31, 2022Dec 31, 2021Sep 30, 2021Jun 30, 2021Mar 31, 2021Dec 31,
2022		Dec 31,
2021
Revenues:   
Specialty Property & Casualty Insurance:
Earned Premiums:
Personal Automobile$830.4 $858.8 $905.8 $901.7 $918.1 $920.6 $909.6 $785.4 $3,496.7 $3,533.7 
Commercial Automobile151.2 140.7 137.9 119.9 114.2 107.7 100.7 92.2 549.7 414.8 
Total Specialty Property & Casualty Insurance Earned Premiums981.6 999.5 1,043.7 1,021.6 1,032.3 1,028.3 1,010.3 877.6 4,046.4 3,948.5 
Net Investment Income37.9 33.9 34.0 34.9 37.8 37.0 42.7 35.0 140.7 152.5 
Change in Value of Alternative Energy Partnership Investments0.7 0.3 (2.5)(8.4)(6.7)(11.3)(3.7)(7.3)(9.9)(29.0)
Other Income1.0 2.3 1.0 1.7 1.0 1.2 1.0 0.9 6.0 4.1 
Total Specialty Property & Casualty Insurance Revenues1,021.2 1,036.0 1,076.2 1,049.8 1,064.4 1,055.2 1,050.3 906.2 4,183.2 4,076.1 
Preferred Property & Casualty Insurance:
Earned Premiums:
Personal Automobile84.2 89.5 94.0 96.0 101.4 102.6 103.5 103.0 363.7 410.5 
Homeowners49.1 51.9 47.7 51.3 52.7 52.5 51.3 50.8 200.0 207.3 
Other Personal7.4 7.9 8.2 8.3 8.5 8.6 8.4 8.4 31.8 33.9 
Total Preferred Property & Casualty Insurance Earned Premiums140.7 149.3 149.9 155.6 162.6 163.7 163.2 162.2 595.5 651.7 
Net Investment Income13.5 11.8 11.9 12.5 17.1 16.1 19.5 15.9 49.7 68.6 
Change in Value of Alternative Energy Partnership Investments0.3 — (1.1)(3.9)(3.8)(6.4)(2.0)(4.1)(4.7)(16.3)
Total Preferred Property & Casualty Insurance Revenues154.5 161.1 160.7 164.2 175.9 173.4 180.7 174.0 640.5 704.0 
Life & Health Insurance:
Earned Premiums:
Life101.1 100.4 102.9 101.3 101.5 101.5 100.6 98.1 405.7 401.7 
Accident and Health31.4 45.9 45.1 45.8 47.6 47.0 47.9 47.4 168.2 189.9 
Property12.2 11.9 12.1 14.3 15.1 15.6 15.7 15.5 50.5 61.9 
Total Life & Health Insurance Earned Premiums144.7 158.2 160.1 161.4 164.2 164.1 164.2 161.0 624.4 653.5 
Net Investment Income52.6 52.6 61.9 49.4 50.8 48.4 52.4 51.1 216.5 202.7 
Change in Value of Alternative Energy Partnership Investments0.3 0.1 (1.3)(4.4)(3.7)(6.1)(2.0)(4.0)(5.3)(15.8)
Other Income0.2 — (0.8)— (1.6)0.1 0.1 0.1 (0.6)(1.3)
Total Life & Health Insurance Revenues197.8 210.9 219.9 206.4 209.7 206.5 214.7 208.2 835.0 839.1 
Total Segment Revenues1,373.5 1,408.0 1,456.8 1,420.4 1,450.0 1,435.1 1,445.7 1,288.4 5,658.7 5,619.2 
Income (Loss) from Change in Fair Value of Equity and Convertible Securities— (11.2)(40.5)(28.2)22.2 (0.6)40.8 52.2 (79.9)114.6 
Net Realized Investment Gains (Losses)3.9 (12.1)11.0 1.5 21.7 10.1 19.2 13.8 4.3 64.8 
Impairment Losses(3.7)(8.3)(4.9)(8.9)(3.2)(0.6)(3.2)(4.0)(25.8)(11.0)
Other3.0 1.2 11.4 3.9 3.2 0.6 — 1.6 19.5 5.4 
Total Revenues$1,376.7 $1,377.6 $1,433.8 $1,388.7 $1,493.9 $1,444.6 $1,502.5 $1,352.0 $5,576.8 $5,793.0 
 

11


Kemper Corporation
Segment Operating Results
(Dollars in Millions)
(Unaudited)
 Three Months EndedYear Ended
 Dec 31,
2022		Sep 30, 2022Jun 30, 2022Mar 31, 2022Dec 31, 2021Sep 30, 2021Jun 30, 2021Mar 31, 2021Dec 31,
2022		Dec 31,
2021
Segment Operating Income (Loss):  
Specialty Property & Casualty Insurance$(46.5)$(39.2)$(51.0)$(60.2)$(163.4)$(91.8)$(122.1)$85.2 $(196.9)$(292.1)
Preferred Property & Casualty Insurance(2.0)(3.3)(21.6)(9.5)(12.0)(17.4)(13.4)3.0 (36.4)(39.8)
Life & Health Insurance23.7 13.8 20.8 1.2 4.0 (5.9)13.2 (0.8)59.5 10.5 
Total Segment Operating Income (Loss)(24.8)(28.7)(51.8)(68.5)(171.4)(115.1)(122.3)87.4 (173.8)(321.4)
Other(15.5)(16.6)(1.6)(14.0)(7.6)(15.5)(13.8)(11.5)(47.7)(48.4)
Corporate and Other Operating Income (Loss)(15.5)(16.6)(1.6)(14.0)(7.6)(15.5)(13.8)(11.5)(47.7)(48.4)
Total Operating Income (Loss)(40.3)(45.3)(53.4)(82.5)(179.0)(130.6)(136.1)75.9 (221.5)(369.8)
Income From:
Change in Fair Value of Equity and Convertible Securities— (11.2)(40.5)(28.2)22.2 (0.6)40.8 52.2 (79.9)114.6 
Net Realized Investment Gains (Losses)3.9 (12.1)11.0 1.5 21.7 10.1 19.2 13.8 4.3 64.8 
Impairment Losses(3.7)(8.3)(4.9)(8.9)(3.2)(0.6)(3.2)(4.0)(25.8)(11.0)
Acquisition and Disposition Related Transaction, Integration, Restructuring and Other Costs(35.6)(12.7)(9.9)(4.7)(9.1)(8.1)(10.4)(16.3)(62.9)(43.9)
Loss from Early Extinguishment of Debt— — — (3.7)— — — — (3.7)— 
Income (Loss) before Income Taxes$(75.7)$(89.6)$(97.7)$(126.5)$(147.4)$(129.8)$(89.7)$121.6 $(389.5)$(245.3)
Segment Net Operating Income (Loss):
Specialty Property & Casualty Insurance$(35.1)$(28.7)$(38.9)$(44.7)$(125.2)$(59.3)$(91.7)$80.1 $(147.4)$(196.1)
Preferred Property & Casualty Insurance(0.9)(2.1)(16.8)(6.1)(7.4)(6.4)(8.3)9.6 (25.9)(12.5)
Life & Health Insurance20.8 12.6 17.7 3.1 5.1 2.8 13.0 7.3 54.2 28.2 
Total Segment Net Operating Income (Loss)(15.2)(18.2)(38.0)(47.7)(127.5)(62.9)(87.0)97.0 (119.1)(180.4)
Corporate and Other Net Operating Income (Loss) From:
Other(11.4)(12.3)(1.7)(12.4)(3.3)(12.9)(12.4)(9.8)(37.8)(38.4)
Corporate and Other Net Operating Income (Loss)(11.4)(12.3)(1.7)(12.4)(3.3)(12.9)(12.4)(9.8)(37.8)(38.4)
Adjusted Consolidated Net Operating Income (Loss)(26.6)(30.5)(39.7)(60.1)(130.8)(75.8)(99.4)87.2 (156.9)(218.8)
Net Income (Loss) From:
Change in Fair Value of Equity and Convertible Securities— (8.8)(32.0)(22.3)17.5 (0.5)32.3 41.2 (63.1)90.5 
Net Realized Investment Gains (Losses)3.1 (9.6)8.7 1.2 17.2 7.9 15.2 10.9 3.4 51.2 
Impairment Losses(2.9)(6.6)(3.9)(7.0)(2.5)(0.5)(2.5)(3.2)(20.4)(8.7)
Acquisition and Disposition Related Transaction, Integration, Restructuring and Other Costs(29.1)(20.7)(7.8)(3.7)(7.2)(6.4)(8.2)(12.9)(61.3)(34.7)
Loss from Early Extinguishment of Debt— — — (2.9)— — — — (2.9)— 
Net Income (Loss)$(55.5)$(76.2)$(74.7)$(94.8)$(105.8)$(75.3)$(62.6)$123.2 $(301.2)$(120.5)
    
 


12


Kemper Corporation
Catastrophe Frequency and Severity
(Dollars in Millions)
(Unaudited)
Year Ended December 31, 2022
Specialty Property & Casualty Insurance SegmentPreferred Property & Casualty Insurance SegmentLife & Health Insurance SegmentConsolidated
Number of EventsLosses and LAENumber of EventsLosses and LAENumber of EventsLosses and LAENumber of EventsLosses and LAE
Range of Losses and LAE Per Event1:
Below $550 $10.8 60 $49.4 40 $1.8 59 $54.6 
$5 - $10— — 1 5.1 — — 2 10.2 
$10 - $151 12.2 — — — — 1 14.5 
$15 - $20— — — — — — — — 
$20 - $25— — — — — — — — 
Greater Than $25— — — — — — — — 
Total51 $23.0 61 $54.5 40 $1.8 62 $79.3 
Year Ended December 31, 2021
Specialty Property & Casualty Insurance SegmentPreferred Property & Casualty Insurance SegmentLife & Health Insurance SegmentConsolidated
Number of EventsLosses and LAENumber of EventsLosses and LAENumber of EventsLosses and LAENumber of EventsLosses and LAE
Range of Losses and LAE Per Event1:
Below $552 $15.7 58 $42.6 47 $5.0 65 $56.1 
$5 - $10— — 3 21.5 1 8.0 2 16.5 
$10 - $15— — 1 15.0 — — — — 
$15 - $20— — — — — — 2 35.2 
$20 - $25— — — — — — — — 
Greater Than $25— — — — — — — — 
Total52 $15.7 62 $79.1 48 $13.0 69 $107.8 
1 Current accident year net incurred catastrophe Losses and LAE only


13

Kemper Corporation
Specialty Property & Casualty Insurance Segment
Results of Operations and Selected Financial Information
(Dollars in Millions)
(Unaudited)
 Three Months EndedYear Ended
 Dec 31,
2022		Sep 30, 2022Jun 30, 2022Mar 31, 2022Dec 31, 2021Sep 30, 2021Jun 30, 2021Mar 31, 2021Dec 31,
2022		Dec 31,
2021
Results of Operations    
Net Premiums Written$922.3 $968.5 $1,019.9 $1,023.7 $979.0 $1,024.3 $1,082.0 $972.0 $3,934.4 $4,057.3 
Total Specialty P&C
Personal Automobile830.4 858.8 905.8 901.7 918.1 920.6 909.6 785.4 3,496.7 3,533.7 
Commercial Automobile151.2 140.7 137.9 119.9 114.2 107.7 100.7 92.2 549.7 414.8 
Earned Premium$981.6 $999.5 $1,043.7 $1,021.6 $1,032.3 $1,028.3 $1,010.3 $877.6 $4,046.4 $3,948.5 
Net Investment Income37.9 33.9 34.0 34.9 37.8 37.0 42.7 35.0 140.7 152.5 
Change in Value of Alternative Energy Partnership Investments0.7 0.3 (2.5)(8.4)(6.7)(11.3)(3.7)(7.3)(9.9)(29.0)
Other Income1.0 2.3 1.0 1.7 1.0 1.2 1.0 0.9 6.0 4.1 
Total Revenues1,021.2 1,036.0 1,076.2 1,049.8 1,064.4 1,055.2 1,050.3 906.2 4,183.2 4,076.1 
Incurred Losses and LAE related to:
Current Year:
Non-catastrophe Losses and LAE859.3 868.0 930.2 911.7 1,028.5 924.4 877.4 650.0 3,569.2 3,480.3 
Catastrophe Losses and LAE(0.1)14.8 6.2 2.1 2.5 3.4 8.1 1.7 23.0 15.7 
Prior Years:
Non-catastrophe Losses and LAE10.2 (6.6)(14.4)(3.8)(7.6)25.1 81.3 (1.4)(14.6)97.4 
Catastrophe Losses and LAE(0.1)0.2 (0.2)0.7 — (0.1)— 0.4 0.6 0.3 
Total Incurred Losses and LAE869.3 876.4 921.8 910.7 1,023.4 952.8 966.8 650.7 3,578.2 3,593.7 
Insurance Expenses198.4 198.8 205.4 199.3 204.4 194.2 205.6 170.3 801.9 774.5 
Operating Income (Loss)(46.5)(39.2)(51.0)(60.2)(163.4)(91.8)(122.1)85.2 (196.9)(292.1)
Income Tax Benefit (Expense)11.4 10.5 12.1 15.5 38.2 32.5 30.4 (5.1)49.5 96.0 
Segment Net Operating Income (Loss) $(35.1)$(28.7)$(38.9)$(44.7)$(125.2)$(59.3)$(91.7)$80.1 $(147.4)$(196.1)
Ratios Based On Earned Premiums
Current Year Non-catastrophe Losses and LAE Ratio87.6 %86.9 %89.1 %89.2 %99.6 %90.0 %86.9 %74.1 %88.2 %88.1 %
Current Year Catastrophe Losses and LAE Ratio— 1.5 0.6 0.2 0.2 0.3 0.8 0.2 0.6 0.4 
Prior Years Non-catastrophe Losses and LAE Ratio1.0 (0.7)(1.4)(0.4)(0.7)2.4 8.0 (0.2)(0.4)2.5 
Prior Years Catastrophe Losses and LAE Ratio— — — 0.1 — — — — — — 
Total Incurred Loss and LAE Ratio88.6 87.7 88.3 89.1 99.1 92.7 95.7 74.1 88.4 91.0 
Insurance Expense Ratio20.2 19.9 19.7 19.5 19.8 18.9 20.4 19.4 19.8 19.6 
Combined Ratio108.8 %107.6 %108.0 %108.6 %118.9 %111.6 %116.1 %93.5 %108.2 %110.6 %
Underlying Combined Ratio 1
Current Year Non-catastrophe Losses and LAE Ratio87.6 %86.9 %89.1 %89.2 %99.6 %90.0 %86.9 %74.1 %88.2 %88.1 %
Insurance Expense Ratio20.2 19.9 19.7 19.5 19.8 18.9 20.4 19.4 19.8 19.6 
Underlying Combined Ratio107.8 %106.8 %108.8 %108.7 %119.4 %108.9 %107.3 %93.5 %108.0 %107.7 %
Non-GAAP Measure Reconciliation
Combined Ratio as Reported108.8 %107.6 %108.0 %108.6 %118.9 %111.6 %116.1 %93.5 %108.2 %110.6 %
Less:
Current Year Catastrophe Losses and LAE Ratio— 1.5 0.6 0.2 0.2 0.3 0.8 0.2 0.6 0.4 
Prior Years Non-catastrophe Losses and LAE Ratio1.0 (0.7)(1.4)(0.4)(0.7)2.4 8.0 (0.2)(0.4)2.5 
Prior Years Catastrophe Losses and LAE Ratio— — — 0.1 — — — — — — 
Underlying Combined Ratio107.8 %106.8 %108.8 %108.7 %119.4 %108.9 %107.3 %93.5 %108.0 %107.7 %
1 Underlying Combined Ratio is a non-GAAP measure, which is computed as the difference between three operating ratios: the combined ratio, the effect of catastrophes (excluding development of prior-year catastrophes) on the combined ratio and the effect of prior-year reserve development at the reporting date (including development on prior-year catastrophes) on the combined ratio.
14


Kemper Corporation
Specialty Property & Casualty Insurance Segment
Results of Operations and Selected Financial Information (continued)
(Dollars in Millions)
(Unaudited)
Dec 31,
2022		Sep 30, 2022Jun 30, 2022Mar 31, 2022Dec 31, 2021Sep 30, 2021Jun 30, 2021Mar 31, 2021
Insurance Reserves:
Non-Standard Automobile$1,875.8 $1,857.0 $1,915.2 $1,952.3 $1,985.8 $1,841.1 $1,703.1 $1,304.7 
Commercial Automobile445.3 417.8 385.9 356.5 333.9 302.4 281.6 257.2 
Insurance Reserves$2,321.1 $2,274.8 $2,301.1 $2,308.8 $2,319.7 $2,143.5 $1,984.7 $1,561.9 
Insurance Reserves:
Loss and Allocated LAE Reserves:
Case and Allocated LAE$1,099.9 $1,110.7 $1,151.0 $1,166.0 $1,157.9 $1,071.1 $1,005.8 $799.7 
Incurred but Not Reported1,041.2 968.2 940.4 934.0 953.0 881.6 810.2 614.1 
Total Loss Reserves2,141.1 2,078.9 2,091.4 2,100.0 2,110.9 1,952.7 1,816.0 1,413.8 
Unallocated LAE Reserves180.0 195.9 209.7 208.8 208.8 190.8 168.7 148.1 
Insurance Reserves$2,321.1 $2,274.8 $2,301.1 $2,308.8 $2,319.7 $2,143.5 $1,984.7 $1,561.9 

15

Kemper Corporation
Specialty Property & Casualty Insurance Segment
Personal Automobile Insurance - Results of Operations and Selected Financial Information
(Dollars in Millions)
(Unaudited)
 Three Months EndedYear Ended
 Dec 31,
2022		Sep 30, 2022Jun 30, 2022Mar 31, 2022Dec 31, 2021Sep 30, 2021Jun 30, 2021Mar 31, 2021Dec 31,
2022		Dec 31,
2021
Results of Operations   
Net Premiums Written$762.8 $805.2 $852.3 $884.8 $858.7 $902.7 $964.3 $861.5 $3,305.1 $3,587.2 
Earned Premiums$830.4 $858.8 $905.8 $901.7 $918.1 $920.6 $909.6 $785.4 $3,496.7 $3,533.7 
Net Investment Income29.7 26.5 26.6 27.2 31.5 30.9 35.4 29.1 110.0 126.9 
Change in Value of Alternative Energy Partnership Investments0.5 0.3 (1.8)(6.0)(5.3)(8.9)(2.9)(5.8)(7.0)(22.9)
Other Income1.0 2.3 1.0 1.7 1.0 1.2 1.0 0.9 6.0 4.1 
Total Revenues861.6 887.9 931.6 924.6 945.3 943.8 943.1 809.6 3,605.7 3,641.8 
Incurred Losses and LAE related to:
Current Year:
Non-catastrophe Losses and LAE739.8 757.8 828.6 827.7 938.5 843.9 805.1 586.4 3,153.9 3,173.9 
Catastrophe Losses and LAE(0.2)13.1 5.8 2.0 2.3 3.1 7.4 1.6 20.7 14.4 
Prior Years:
Non-catastrophe Losses and LAE14.1 (6.7)(16.5)(9.0)(11.7)25.1 76.0 (4.4)(18.1)85.0 
Catastrophe Losses and LAE(0.1)0.1 (0.2)0.7 — (0.1)— 0.4 0.5 0.3 
Total Incurred Losses and LAE753.6 764.3 817.7 821.4 929.1 872.0 888.5 584.0 3,157.0 3,273.6 
Insurance Expenses172.2 172.9 179.7 177.3 184.3 176.0 187.7 155.3 702.1 703.3 
Operating Income (Loss)(64.2)(49.3)(65.8)(74.1)(168.1)(104.2)(133.1)70.3 (253.4)(335.1)
Income Benefit (Expense)14.7 12.3 14.9 17.7 38.4 32.4 31.8 (4.6)59.6 98.0 
Total Product Line Net Operating Income (Loss)$(49.5)$(37.0)$(50.9)$(56.4)$(129.7)$(71.8)$(101.3)$65.7 $(193.8)$(237.1)
Ratios Based On Earned Premiums
Current Year Non-catastrophe Losses and LAE Ratio89.1 %88.3 %91.5 %91.8 %102.2 %91.7 %88.5 %74.7 %90.2 %89.8 %
Current Year Catastrophe Losses and LAE Ratio— 1.5 0.6 0.2 0.3 0.3 0.8 0.2 0.6 0.4 
Prior Years Non-catastrophe Losses and LAE Ratio1.7 (0.8)(1.8)(1.0)(1.3)2.7 8.4 (0.6)(0.5)2.4 
Prior Years Catastrophe Losses and LAE Ratio— — — 0.1 — — — 0.1 — — 
Total Incurred Loss and LAE Ratio90.8 89.0 90.3 91.1 101.2 94.7 97.7 74.4 90.3 92.6 
Insurance Expense Ratio20.7 20.1 19.8 19.7 20.1 19.1 20.6 19.8 20.1 19.9 
Combined Ratio111.5 %109.1 %110.1 %110.8 %121.3 %113.8 %118.3 %94.2 %110.4 %112.5 %
Underlying Combined Ratio 1
Current Year Non-catastrophe Losses and LAE Ratio89.1 %88.3 %91.5 %91.8 %102.2 %91.7 %88.5 %74.7 %90.2 %89.8 %
Insurance Expense Ratio20.7 20.1 19.8 19.7 20.1 19.1 20.6 19.8 20.1 19.9 
Underlying Combined Ratio109.8 %108.4 %111.3 %111.5 %122.3 %110.8 %109.1 %94.5 %110.3 %109.7 %
Non-GAAP Measure Reconciliation
Combined Ratio111.5 %109.1 %110.1 %110.8 %121.3 %113.8 %118.3 %94.2 %110.4 %112.5 %
Less:
Current Year Catastrophe Losses and LAE Ratio— 1.5 0.6 0.2 0.3 0.3 0.8 0.2 0.6 0.4 
Prior Years Non-catastrophe Losses and LAE Ratio1.7 (0.8)(1.8)(1.0)(1.3)2.7 8.4 (0.6)(0.5)2.4 
Prior Years Catastrophe Losses and LAE Ratio— — — 0.1 — — — 0.1 — — 
Underlying Combined Ratio109.8 %108.4 %111.3 %111.5 %122.3 %110.8 %109.1 %94.5 %110.3 %109.7 %
1 Underlying Combined Ratio is a non-GAAP measure, which is computed as the difference between three operating ratios: the combined ratio, the effect of catastrophes (excluding development of prior-year catastrophes) on the combined ratio and the effect of prior-year reserve development at the reporting date (including development on prior-year catastrophes) on the combined ratio.
16

Kemper Corporation
Specialty Property & Casualty Insurance Segment
Commercial Automobile Insurance - Results of Operations and Selected Financial Information
(Dollars in Millions)
(Unaudited)
 Three Months EndedYear Ended
 Dec 31,
2022		Sep 30, 2022Jun 30, 2022Mar 31, 2022Dec 31, 2021Sep 30, 2021Jun 30, 2021Mar 31, 2021Dec 31,
2022		Dec 31,
2021
Results of Operations   
Net Premiums Written$159.5 $163.3 $167.6 $138.9 $120.3 $121.6 $117.7 $110.5 $629.3 $470.1 
Earned Premiums$151.2 $140.7 $137.9 $119.9 $114.2 $107.7 $100.7 $92.2 $549.7 $414.8 
Net Investment Income8.2 7.4 7.4 7.7 6.3 6.1 7.3 5.9 30.7 25.6 
Change in Value of Alternative Energy Partnership Investments0.2 — (0.7)(2.4)(1.4)(2.4)(0.8)(1.5)(2.9)(6.1)
Total Revenues159.6 148.1 144.6 125.2 119.1 111.4 107.2 96.6 577.5 434.3 
Incurred Losses and LAE related to:
Current Year:
Non-catastrophe Losses and LAE119.5 110.2 101.6 84.0 90.0 80.5 72.3 63.6 415.3 306.4 
Catastrophe Losses and LAE0.1 1.7 0.4 0.1 0.2 0.3 0.7 0.1 2.3 1.3 
Prior Years:
Non-catastrophe Losses and LAE(3.9)0.1 2.1 5.2 4.1 — 5.3 3.0 3.5 12.4 
Catastrophe Losses and LAE— 0.1 — — — — — — 0.1 — 
Total Incurred Losses and LAE115.7 112.1 104.1 89.3 94.3 80.8 78.3 66.7 421.2 320.1 
Insurance Expenses26.2 25.9 25.7 22.0 20.1 18.2 17.9 15.0 99.8 71.2 
Operating Income (Loss)17.7 10.1 14.8 13.9 4.7 12.4 11.0 14.9 56.5 43.0 
Income Tax Benefit (Expense)(3.3)(1.8)(2.8)(2.2)(0.2)0.1 (1.4)(0.5)(10.1)(2.0)
Total Product Line Net Operating Income (Loss)$14.4 $8.3 $12.0 $11.7 $4.5 $12.5 $9.6 $14.4 $46.4 $41.0 
Ratios Based On Earned Premiums
Current Year Non-catastrophe Losses and LAE Ratio79.0 %78.3 %73.7 %70.1 %78.8 %74.7 %71.8 %68.9 %75.6 %73.9 %
Current Year Catastrophe Losses and LAE Ratio0.1 1.2 0.3 0.1 0.2 0.3 0.7 0.1 0.4 0.3 
Prior Years Non-catastrophe Losses and LAE Ratio(2.6)0.1 1.5 4.3 3.6 — 5.3 3.3 0.6 3.0 
Prior Years Catastrophe Losses and LAE Ratio— 0.1 — — — — — — — — 
Total Incurred Loss and LAE Ratio76.5 79.7 75.5 74.5 82.6 75.0 77.8 72.3 76.6 77.2 
Insurance Expense Ratio17.3 18.4 18.6 18.3 17.6 16.9 17.8 16.3 18.2 17.2 
Combined Ratio93.8 %98.1 %94.1 %92.8 %100.2 %91.9 %95.6 %88.6 %94.8 %94.4 %
Underlying Combined Ratio 1
Current Year Non-catastrophe Losses and LAE Ratio79.0 %78.3 %73.7 %70.1 %78.8 %74.7 %71.8 %68.9 %75.6 %73.9 %
Insurance Expense Ratio17.3 18.4 18.6 18.3 17.6 16.9 17.8 16.3 18.2 17.2 
Underlying Combined Ratio96.3 %96.7 %92.3 %88.4 %96.4 %91.6 %89.6 %85.2 %93.8 %91.1 %
Non-GAAP Measure Reconciliation
Combined Ratio93.8 %98.1 %94.1 %92.8 %100.2 %91.9 %95.6 %88.6 %94.8 %94.4 %
Less:
Current Year Catastrophe Losses and LAE Ratio0.1 1.2 0.3 0.1 0.2 0.3 0.7 0.1 0.4 0.3 
Prior Years Non-catastrophe Losses and LAE Ratio(2.6)0.1 1.5 4.3 3.6 — 5.3 3.3 0.6 3.0 
Prior Years Catastrophe Losses and LAE Ratio— 0.1 — — — — — — — — 
Underlying Combined Ratio96.3 %96.7 %92.3 %88.4 %96.4 %91.6 %89.6 %85.2 %93.8 %91.1 %
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.
    
17

Kemper Corporation
Preferred Property & Casualty Insurance Segment
Results of Operations and Selected Financial Information
(Dollars in Millions)
(Unaudited)
 Three Months EndedYear Ended
 Dec 31,
2022		Sep 30, 2022Jun 30, 2022Mar 31, 2022Dec 31, 2021Sep 30, 2021Jun 30, 2021Mar 31, 2021Dec 31,
2022		Dec 31,
2021
Results of Operations   
Net Premiums Written$115.1 $133.3 $141.3 $137.4 $153.2 $164.8 $169.6 $154.4 $527.1 $642.0 
Earned Premiums$140.7 $149.3 $149.9 $155.6 $162.6 $163.7 $163.2 $162.2 $595.5 $651.7 
Net Investment Income13.5 11.8 11.9 12.5 17.1 16.1 19.5 15.9 49.7 68.6 
Change in Value of Alternative Energy Partnership Investments0.3 — (1.1)(3.9)(3.8)(6.4)(2.0)(4.1)(4.7)(16.3)
Total Revenues154.5 161.1 160.7 164.2 175.9 173.4 180.7 174.0 640.5 704.0 
Incurred Losses and LAE related to:
Current Year:
Non-catastrophe Losses and LAE108.9 110.7 110.5 112.2 122.4 115.6 116.2 96.2 442.3 450.4 
Catastrophe Losses and LAE8.8 10.8 23.5 11.4 7.5 23.4 24.2 24.0 54.5 79.1 
Prior Years:
Non-catastrophe Losses and LAE(0.8)(0.3)1.8 2.1 8.4 — 5.0 0.1 2.8 13.5 
Catastrophe Losses and LAE(1.5)(0.7)(0.8)(3.2)(2.0)0.1 (3.4)(0.3)(6.2)(5.6)
Total Incurred Losses and LAE115.4 120.5 135.0 122.5 136.3 139.1 142.0 120.0 493.4 537.4 
Insurance Expenses41.1 43.9 47.3 51.2 51.6 51.7 52.1 51.0 183.5 206.4 
Operating Income (Loss)(2.0)(3.3)(21.6)(9.5)(12.0)(17.4)(13.4)3.0 (36.4)(39.8)
Income Tax Benefit (Expense)1.1 1.2 4.8 3.4 4.6 11.0 5.1 6.6 10.5 27.3 
Segment Net Operating Income (Loss)$(0.9)$(2.1)$(16.8)$(6.1)$(7.4)$(6.4)$(8.3)$9.6 $(25.9)$(12.5)
Ratios Based On Earned Premiums
Current Year Non-catastrophe Losses and LAE Ratio77.4 %74.2 %73.7 %72.2 %75.2 %70.6 %71.2 %59.3 %74.2 %69.2 %
Current Year Catastrophe Losses and LAE Ratio6.3 7.2 15.7 7.3 4.6 14.3 14.8 14.8 9.2 12.1 
Prior Years Non-catastrophe Losses and LAE Ratio(0.6)(0.2)1.2 1.3 5.2 — 3.1 0.1 0.5 2.1 
Prior Years Catastrophe Losses and LAE Ratio(1.1)(0.5)(0.5)(2.1)(1.2)0.1 (2.1)(0.2)(1.0)(0.9)
Total Incurred Loss and LAE Ratio82.0 80.7 90.1 78.7 83.8 85.0 87.0 74.0 82.9 82.5 
Insurance Expense Ratio29.2 29.4 31.6 32.9 31.7 31.6 31.9 31.4 30.8 31.7 
Combined Ratio111.2 %110.1 %121.7 %111.6 %115.5 %116.6 %118.9 %105.4 %113.7 %114.2 %
Underlying Combined Ratio 1
Current Year Non-catastrophe Losses and LAE Ratio77.4 %74.2 %73.7 %72.2 %75.2 %70.6 %71.2 %59.3 %74.2 %69.2 %
Insurance Expense Ratio29.2 29.4 31.6 32.9 31.7 31.6 31.9 31.4 30.8 31.7 
Underlying Combined Ratio106.6 %103.6 %105.3 %105.1 %106.9 %102.2 %103.1 %90.7 %105.0 %100.9 %
Non-GAAP Measure Reconciliation
Combined Ratio as Reported111.2 %110.1 %121.7 %111.6 %115.5 %116.6 %118.9 %105.4 %113.7 %114.2 %
Less:
Current Year Catastrophe Losses and LAE Ratio6.3 7.2 15.7 7.3 4.6 14.3 14.8 14.8 9.2 12.1 
Prior Years Non-catastrophe Losses and LAE Ratio(0.6)(0.2)1.2 1.3 5.2 — 3.1 0.1 0.5 2.1 
Prior Years Catastrophe Losses and LAE Ratio(1.1)(0.5)(0.5)(2.1)(1.2)0.1 (2.1)(0.2)(1.0)(0.9)
Underlying Combined Ratio106.6 %103.6 %105.3 %105.1 %106.9 %102.2 %103.1 %90.7 %105.0 %100.9 %
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.

18

Kemper Corporation
Preferred Property & Casualty Insurance Segment
Results of Operations and Selected Financial Information (continued)
(Dollars in Millions)
(Unaudited)
Dec 31,
2022		Sep 30, 2022Jun 30, 2022Mar 31, 2022Dec 31, 2021Sep 30, 2021Jun 30, 2021Mar 31, 2021
Insurance Reserves:
Personal Automobile$298.4 $303.6 $306.8 $307.9 $308.6 $290.0 $282.9 $275.9 
Homeowners91.8 93.7 100.6 93.1 95.4 108.5 110.7 107.6 
Other Personal28.9 29.7 31.6 30.6 29.2 30.1 31.0 30.7 
Insurance Reserves$419.1 $427.0 $439.0 $431.6 $433.2 $428.6 $424.6 $414.2 
Insurance Reserves:
Loss and Allocated LAE Reserves:
Case and Allocated LAE$251.6 $259.6 $270.0 $271.1 $272.5 $280.8 $282.3 $282.0 
Incurred but Not Reported139.0 138.1 139.9 131.8 131.9 120.4 116.1 105.6 
Total Loss Reserves390.6 397.7 409.9 402.9 404.4 401.2 398.4 387.6 
Unallocated LAE Reserves28.5 29.3 29.1 28.7 28.8 27.4 26.2 26.6 
Insurance Reserves$419.1 $427.0 $439.0 $431.6 $433.2 $428.6 $424.6 $414.2 

19

Kemper Corporation
Preferred Property & Casualty Insurance Segment
Personal Automobile Insurance - Results of Operations and Selected Financial Information
(Dollars in Millions)
(Unaudited)
 Three Months EndedYear Ended
 Dec 31,
2022		Sep 30, 2022Jun 30, 2022Mar 31, 2022Dec 31, 2021Sep 30, 2021Jun 30, 2021Mar 31, 2021Dec 31,
2022		Dec 31,
2021
Results of Operations   
Net Premiums Written$66.1 $73.3 $84.6 $84.2 $95.2 $99.9 $104.4 $100.4 $308.2 $399.9 
Earned Premiums$84.2 $89.5 $94.0 $96.0 $101.4 $102.6 $103.5 $103.0 $363.7 $410.5 
Net Investment Income6.5 5.7 5.8 6.0 7.9 7.4 9.0 7.3 24.0 31.6 
Change in Value of Alternative Energy Partnership Investments0.1 — (0.5)(1.9)(1.7)(3.0)(0.9)(1.9)(2.3)(7.5)
Total Revenues90.8 95.2 99.3 100.1 107.6 107.0 111.6 108.4 385.4 434.6 
Incurred Losses and LAE related to:
Current Year:
Non-catastrophe Losses and LAE75.7 76.7 77.8 80.5 96.2 84.8 81.6 67.8 310.7 330.4 
Catastrophe Losses and LAE0.6 1.1 1.6 0.5 1.3 2.7 2.8 0.6 3.8 7.4 
Prior Years:
Non-catastrophe Losses and LAE0.1 0.2 — 1.5 7.3 0.1 3.6 1.2 1.8 12.2 
Catastrophe Losses and LAE(0.2)0.1 — 0.1 (0.1)0.1 (0.2)0.1 — (0.1)
Total Incurred Losses and LAE76.2 78.1 79.4 82.6 104.7 87.7 87.8 69.7 316.3 349.9 
Insurance Expenses23.9 26.5 28.4 31.2 32.7 32.7 33.6 32.8 110.0 131.8 
Operating Income (Loss)(9.3)(9.4)(8.5)(13.7)(29.8)(13.4)(9.8)5.9 (40.9)(47.1)
Income Tax Benefit (Expense)2.3 2.2 1.9 3.6 7.2 6.2 3.1 2.1 10.0 18.6 
Total Product Line Net Operating Income (Loss)$(7.0)$(7.2)$(6.6)$(10.1)$(22.6)$(7.2)$(6.7)$8.0 $(30.9)$(28.5)
Ratios Based On Earned Premiums
Current Year Non-catastrophe Losses and LAE Ratio89.9 %85.8 %82.8 %83.8 %94.9 %82.7 %78.8 %65.8 %85.5 %80.4 %
Current Year Catastrophe Losses and LAE Ratio0.7 1.2 1.7 0.5 1.3 2.6 2.7 0.6 1.0 1.8 
Prior Years Non-catastrophe Losses and LAE Ratio0.1 0.2 — 1.6 7.2 0.1 3.5 1.2 0.5 3.0 
Prior Years Catastrophe Losses and LAE Ratio(0.2)0.1 — 0.1 (0.1)0.1 (0.2)0.1 — — 
Total Incurred Loss and LAE Ratio90.5 87.3 84.5 86.0 103.3 85.5 84.8 67.7 87.0 85.2 
Insurance Expense Ratio28.4 29.6 30.2 32.5 32.2 31.9 32.5 31.8 30.2 32.1 
Combined Ratio118.9 %116.9 %114.7 %118.5 %135.5 %117.4 %117.3 %99.5 %117.2 %117.3 %
Underlying Combined Ratio 1
Current Year Non-catastrophe Losses and LAE Ratio89.9 %85.8 %82.8 %83.8 %94.9 %82.7 %78.8 %65.8 %85.5 %80.4 %
Insurance Expense Ratio28.4 29.6 30.2 32.5 32.2 31.9 32.5 31.8 30.2 32.1 
Underlying Combined Ratio118.3 %115.4 %113.0 %116.3 %127.1 %114.6 %111.3 %97.6 %115.7 %112.5 %
Non-GAAP Measure Reconciliation
Combined Ratio118.9 %116.9 %114.7 %118.5 %135.5 %117.4 %117.3 %99.5 %117.2 %117.3 %
Less:
Current Year Catastrophe Losses and LAE Ratio0.7 1.2 1.7 0.5 1.3 2.6 2.7 0.6 1.0 1.8 
Prior Years Non-catastrophe Losses and LAE Ratio0.1 0.2 — 1.6 7.2 0.1 3.5 1.2 0.5 3.0 
Prior Years Catastrophe Losses and LAE Ratio(0.2)0.1 — 0.1 (0.1)0.1 (0.2)0.1 — — 
Underlying Combined Ratio118.3 %115.4 %113.0 %116.3 %127.1 %114.6 %111.3 %97.6 %115.7 %112.5 %
1 Underlying Combined Ratio is a non-GAAP measure, which is computed as the difference between three operating ratios: the combined ratio, the effect of catastrophes (excluding development of prior-year catastrophes) on the combined ratio and the effect of prior-year reserve development at the reporting date (including development on prior-year catastrophes) on the combined ratio.
20

Kemper Corporation
Preferred Property & Casualty Insurance Segment
Homeowners and Other Personal Insurance - Results of Operations and Selected Financial Information
(Dollars in Millions)
(Unaudited)
 Three Months EndedYear Ended
 Dec 31,
2022		Sep 30, 2022Jun 30, 2022Mar 31, 2022Dec 31, 2021Sep 30, 2021Jun 30, 2021Mar 31, 2021Dec 31,
2022		Dec 31,
2021
Results of Operations   
Net Premiums Written$49.0 $60.0 $56.7 $53.2 $58.0 $64.9 $65.2 $54.0 $218.9 $242.1 
Earned Premiums$56.5 $59.8 $55.9 $59.6 $61.2 $61.1 $59.7 $59.2 $231.8 $241.2 
Net Investment Income7.0 6.1 6.1 6.5 9.2 8.7 10.5 8.6 25.7 37.0 
Change in Value of Alternative Energy Partnership Investments0.2 — (0.6)(2.0)(2.1)(3.4)(1.1)(2.2)(2.4)(8.8)
Total Revenues63.7 65.9 61.4 64.1 68.3 66.4 69.1 65.6 255.1 269.4 
Incurred Losses and LAE related to:
Current Year:
Non-catastrophe Losses and LAE33.2 34.0 32.7 31.7 26.2 30.8 34.6 28.4 131.6 120.0 
Catastrophe Losses and LAE8.2 9.7 21.9 10.9 6.2 20.7 21.4 23.4 50.7 71.7 
Prior Years:
Non-catastrophe Losses and LAE(0.9)(0.5)1.8 0.6 1.1 (0.1)1.4 (1.1)1.0 1.3 
Catastrophe Losses and LAE(1.3)(0.8)(0.8)(3.3)(1.9)— (3.2)(0.4)(6.2)(5.5)
Total Incurred Losses and LAE39.2 42.4 55.6 39.9 31.6 51.4 54.2 50.3 177.1 187.5 
Insurance Expenses17.2 17.4 18.9 20.0 18.9 19.0 18.5 18.2 73.5 74.6 
Operating Income (Loss)7.3 6.1 (13.1)4.2 17.8 (4.0)(3.6)(2.9)4.5 7.3 
Income Tax Benefit (Expense)(1.2)(1.0)2.9 (0.2)(2.6)4.8 2.0 4.5 0.5 8.7 
Total Product Line Net Operating Income (Loss)$6.1 $5.1 $(10.2)$4.0 $15.2 $0.8 $(1.6)$1.6 $5.0 $16.0 
Ratios Based On Earned Premiums
Current Year Non-catastrophe Losses and LAE Ratio58.8 %56.8 %58.5 %53.1 %42.8 %50.4 %58.1 %48.1 %56.8 %49.8 %
Current Year Catastrophe Losses and LAE Ratio14.5 16.2 39.2 18.3 10.1 33.9 35.8 39.5 21.9 29.7 
Prior Years Non-catastrophe Losses and LAE Ratio(1.6)(0.8)3.2 1.0 1.8 (0.2)2.3 (1.9)0.4 0.5 
Prior Years Catastrophe Losses and LAE Ratio(2.3)(1.3)(1.4)(5.5)(3.1)— (5.4)(0.7)(2.7)(2.3)
Total Incurred Loss and LAE Ratio69.4 70.9 99.5 66.9 51.6 84.1 90.8 85.0 76.4 77.7 
Insurance Expense Ratio30.4 29.1 33.8 33.6 30.9 31.1 31.0 30.7 31.7 30.9 
Combined Ratio99.8 %100.0 %133.3 %100.5 %82.5 %115.2 %121.8 %115.7 %108.1 %108.6 %
Underlying Combined Ratio 1
Current Year Non-catastrophe Losses and LAE Ratio58.8 %56.8 %58.5 %53.1 %42.8 %50.4 %58.1 %48.1 %56.8 %49.8 %
Insurance Expense Ratio30.4 29.1 33.8 33.6 30.9 31.1 31.0 30.7 31.7 30.9 
Underlying Combined Ratio89.2 %85.9 %92.3 %86.7 %73.7 %81.5 %89.1 %78.8 %88.5 %80.7 %
Non-GAAP Measure Reconciliation
Combined Ratio99.8 %100.0 %133.3 %100.5 %82.5 %115.2 %121.8 %115.7 %108.1 %108.6 %
Less:
Current Year Catastrophe Losses and LAE Ratio14.5 16.2 39.2 18.3 10.1 33.9 35.8 39.5 21.9 29.7 
Prior Years Non-catastrophe Losses and LAE Ratio(1.6)(0.8)3.2 1.0 1.8 (0.2)2.3 (1.9)0.4 0.5 
Prior Years Catastrophe Losses and LAE Ratio(2.3)(1.3)(1.4)(5.5)(3.1)— (5.4)(0.7)(2.7)(2.3)
Underlying Combined Ratio89.2 %85.9 %92.3 %86.7 %73.7 %81.5 %89.1 %78.8 %88.5 %80.7 %
1Underlying Combined Ratio is a non-GAAP measure, which is computed as the difference between three operating ratios: the combined ratio, the effect of catastrophes (excluding development of prior-year catastrophes) on the combined ratio and the effect of prior-year reserve development at the reporting date (including development on prior-year catastrophes) on the combined ratio.
21


Kemper Corporation
Preferred Property & Casualty Insurance Segment
Homeowners Insurance - Results of Operations and Selected Financial Information
(Dollars in Millions)
(Unaudited)
 Three Months EndedYear Ended
 Dec 31,
2022		Sep 30, 2022Jun 30, 2022Mar 31, 2022Dec 31, 2021Sep 30, 2021Jun 30, 2021Mar 31, 2021Dec 31,
2022		Dec 31,
2021
Results of Operations   
Net Premiums Written$42.4 $52.8 $49.2 $45.5 $49.9 $56.1 $56.3 $46.1 $189.9 $208.4 
Earned Premiums$49.1 $51.9 $47.7 $51.3 $52.7 $52.5 $51.3 $50.8 $200.0 $207.3 
Net Investment Income5.8 5.1 5.1 5.4 8.3 7.9 9.6 7.8 21.4 33.6 
Change in Value of Alternative Energy Partnership Investments0.1 0.1 (0.5)(1.7)(1.9)(3.1)(1.0)(2.0)(2.0)(8.0)
Total Revenues55.0 57.1 52.3 55.0 59.1 57.3 59.9 56.6 219.4 232.9 
Incurred Losses and LAE related to:
Current Year:
Non-catastrophe Losses and LAE30.1 28.8 28.6 27.5 22.8 26.6 30.5 24.2 115.0 104.1 
Catastrophe Losses and LAE8.3 9.4 21.3 10.8 6.0 20.4 21.8 22.0 49.8 70.2 
Prior Years:
Non-catastrophe Losses and LAE(0.3)— (0.1)(1.6)(0.1)(0.2)0.2 (2.5)(2.0)(2.6)
Catastrophe Losses and LAE(1.2)(0.8)(0.8)(2.8)(2.1)0.1 (1.8)(0.1)(5.6)(3.9)
Total Incurred Losses and LAE36.9 37.4 49.0 33.9 26.6 46.9 50.7 43.6 157.2 167.8 
Insurance Expenses14.9 15.2 16.3 17.5 16.3 16.3 16.1 15.7 63.9 64.4 
Operating Income (Loss)3.2 4.5 (13.0)3.6 16.2 (5.9)(6.9)(2.7)(1.7)0.7 
Income Tax Benefit (Expense)(0.4)(0.7)2.9 (0.2)(2.4)4.8 2.6 4.1 1.6 9.1 
Total Product Line Net Operating Income (Loss)$2.8 $3.8 $(10.1)$3.4 $13.8 $(1.1)$(4.3)$1.4 $(0.1)$9.8 
Ratios Based On Earned Premiums
Current Year Non-catastrophe Losses and LAE Ratio61.3 %55.5 %59.9 %53.6 %43.3 %50.6 %59.4 %47.6 %57.5 %50.2 %
Current Year Catastrophe Losses and LAE Ratio16.9 18.1 44.7 21.1 11.4 38.9 42.5 43.3 24.9 33.9 
Prior Years Non-catastrophe Losses and LAE Ratio(0.6)— (0.2)(3.1)(0.2)(0.4)0.4 (4.9)(1.0)(1.3)
Prior Years Catastrophe Losses and LAE Ratio(2.4)(1.5)(1.7)(5.5)(4.0)0.2 (3.5)(0.2)(2.8)(1.9)
Total Incurred Loss and LAE Ratio75.2 72.1 102.7 66.1 50.5 89.3 98.8 85.8 78.6 80.9 
Insurance Expense Ratio30.3 29.3 34.2 34.1 30.9 31.0 31.4 30.9 32.0 31.1 
Combined Ratio105.5 %101.4 %136.9 %100.2 %81.4 %120.3 %130.2 %116.7 %110.6 %112.0 %
Underlying Combined Ratio 1
Current Year Non-catastrophe Losses and LAE Ratio61.3 %55.5 %59.9 %53.6 %43.3 %50.6 %59.4 %47.6 %57.5 %50.2 %
Insurance Expense Ratio30.3 29.3 34.2 34.1 30.9 31.0 31.4 30.9 32.0 31.1 
Underlying Combined Ratio91.6 %84.8 %94.1 %87.7 %74.2 %81.6 %90.8 %78.5 %89.5 %81.3 %
Non-GAAP Measure Reconciliation
Combined Ratio105.5 %101.4 %136.9 %100.2 %81.4 %120.3 %130.2 %116.7 %110.6 %112.0 %
Less:
Current Year Catastrophe Losses and LAE Ratio16.9 18.1 44.7 21.1 11.4 38.9 42.5 43.3 24.9 33.9 
Prior Years Non-catastrophe Losses and LAE Ratio(0.6)— (0.2)(3.1)(0.2)(0.4)0.4 (4.9)(1.0)(1.3)
Prior Years Catastrophe Losses and LAE Ratio(2.4)(1.5)(1.7)(5.5)(4.0)0.2 (3.5)(0.2)(2.8)(1.9)
Underlying Combined Ratio91.6 %84.8 %94.1 %87.7 %74.2 %81.6 %90.8 %78.5 %89.5 %81.3 %
1 Underlying Combined Ratio is a non-GAAP measure, which is computed as the difference between three operating ratios: the combined ratio, the effect of catastrophes (excluding development of prior-year catastrophes) on the combined ratio and the effect of prior-year reserve development at the reporting date (including development on prior-year catastrophes) on the combined ratio.
22

Kemper Corporation
Preferred Property & Casualty Insurance Segment
Other Personal Insurance - Results of Operations and Selected Financial Information
(Dollars in Millions)
(Unaudited)
 Three Months EndedYear Ended
 Dec 31,
2022		Sep 30, 2022Jun 30, 2022Mar 31, 2022Dec 31, 2021Sep 30, 2021Jun 30, 2021Mar 31, 2021Dec 31,
2022		Dec 31,
2021
Results of Operations   
Net Premiums Written$6.6 $7.2 $7.5 $7.7 $8.1 $8.8 $8.9 $7.9 $29.0 $33.7 
Earned Premiums$7.4 $7.9 $8.2 $8.3 $8.5 $8.6 $8.4 $8.4 $31.8 $33.9 
Net Investment Income1.2 1.0 1.0 1.1 0.9 0.8 0.9 0.8 4.3 3.4 
Change in Value of Alternative Energy Partnership Investments0.1 (0.1)(0.1)(0.3)(0.2)(0.3)(0.1)(0.2)(0.4)(0.8)
Total Revenues8.7 8.8 9.1 9.1 9.2 9.1 9.2 9.0 35.7 36.5 
Incurred Losses and LAE related to:
Current Year:
Non-catastrophe Losses and LAE3.1 5.2 4.1 4.2 3.4 4.2 4.1 4.2 16.6 15.9 
Catastrophe Losses and LAE(0.1)0.3 0.6 0.1 0.2 0.3 (0.4)1.4 0.9 1.5 
Prior Years:
Non-catastrophe Losses and LAE(0.6)(0.5)1.9 2.2 1.2 0.1 1.2 1.4 3.0 3.9 
Catastrophe Losses and LAE(0.1)— — (0.5)0.2 (0.1)(1.4)(0.3)(0.6)(1.6)
Total Incurred Losses and LAE2.3 5.0 6.6 6.0 5.0 4.5 3.5 6.7 19.9 19.7 
Insurance Expenses2.3 2.2 2.6 2.5 2.6 2.7 2.4 2.5 9.6 10.2 
Operating Income (Loss)4.1 1.6 (0.1)0.6 1.6 1.9 3.3 (0.2)6.2 6.6 
Income Tax Benefit (Expense)(0.8)(0.3)— — (0.2)— (0.6)0.4 (1.1)(0.4)
Total Product Line Net Operating Income (Loss)$3.3 $1.3 $(0.1)$0.6 $1.4 $1.9 $2.7 $0.2 $5.1 $6.2 
Ratios Based On Earned Premiums
Current Year Non-catastrophe Losses and LAE Ratio42.0 %65.8 %50.0 %50.6 %39.9 %48.8 %48.9 %50.0 %52.3 %46.9 %
Current Year Catastrophe Losses and LAE Ratio(1.4)3.8 7.3 1.2 2.4 3.5 (4.8)16.7 2.8 4.4 
Prior Years Non-catastrophe Losses and LAE Ratio(8.1)(6.3)23.2 26.5 14.1 1.2 14.3 16.7 9.4 11.5 
Prior Years Catastrophe Losses and LAE Ratio(1.4)— — (6.0)2.4 (1.2)(16.7)(3.6)(1.9)(4.7)
Total Incurred Loss and LAE Ratio31.1 63.3 80.5 72.3 58.8 52.3 41.7 79.8 62.6 58.1 
Insurance Expense Ratio31.1 27.8 31.7 30.1 30.6 31.4 28.6 29.8 30.2 30.1 
Combined Ratio62.2 %91.1 %112.2 %102.4 %89.4 %83.7 %70.3 %109.6 %92.8 %88.2 %
Underlying Combined Ratio 1
Current Year Non-catastrophe Losses and LAE Ratio42.0 %65.8 %50.0 %50.6 %39.9 %48.8 %48.9 %50.0 %52.3 %46.9 %
Insurance Expense Ratio31.1 27.8 31.7 30.1 30.6 31.4 28.6 29.8 30.2 30.1 
Underlying Combined Ratio73.1 %93.6 %81.7 %80.7 %70.5 %80.2 %77.5 %79.8 %82.5 %77.0 %
Non-GAAP Measure Reconciliation
Combined Ratio62.2 %91.1 %112.2 %102.4 %89.4 %83.7 %70.3 %109.6 %92.8 %88.2 %
Less:
Current Year Catastrophe Losses and LAE Ratio(1.4)3.8 7.3 1.2 2.4 3.5 (4.8)16.7 2.8 4.4 
Prior Years Non-catastrophe Losses and LAE Ratio(8.1)(6.3)23.2 26.5 14.1 1.2 14.3 16.7 9.4 11.5 
Prior Years Catastrophe Losses and LAE Ratio(1.4)— — (6.0)2.4 (1.2)(16.7)(3.6)(1.9)(4.7)
Underlying Combined Ratio73.1 %93.6 %81.7 %80.7 %70.5 %80.2 %77.5 %79.8 %82.5 %77.0 %
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.
23


Kemper Corporation
Life & Health Insurance Segment
Results of Operations and Selected Financial Information
(Dollars in Millions)
(Unaudited)
 Three Months EndedYear Ended
 Dec 31,
2022		Sep 30, 2022Jun 30, 2022Mar 31, 2022Dec 31, 2021Sep 30, 2021Jun 30, 2021Mar 31, 2021Dec 31,
2022		Dec 31,
2021
Results of Operations  
Earned Premiums$144.7 $158.2 $160.1 $161.4 $164.2 $164.1 $164.2 $161.0 $624.4 $653.5 
Net Investment Income52.6 52.6 61.9 49.4 50.8 48.4 52.4 51.1 216.5 202.7 
Change in Value of Alternative Energy Partnership Investments0.3 0.1 (1.3)(4.4)(3.7)(6.1)(2.0)(4.0)(5.3)(15.8)
Other Income0.2 — (0.8)— (1.6)0.1 0.1 0.1 (0.6)(1.3)
Total Revenues197.8 210.9 219.9 206.4 209.7 206.5 214.7 208.2 835.0 839.1 
Policyholders’ Benefits and Incurred Losses and LAE93.4 105.6 113.5 120.1 116.2 119.5 115.3 118.7 432.6 469.7 
Insurance Expenses80.7 91.5 85.6 85.1 89.5 92.9 86.2 90.3 342.9 358.9 
Operating Income (Loss)23.7 13.8 20.8 1.2 4.0 (5.9)13.2 (0.8)59.5 10.5 
Income Tax Benefit (Expense)(2.9)(1.2)(3.1)1.9 1.1 8.7 (0.2)8.1 (5.3)17.7 
Segment Net Operating Income (Loss)$20.8 $12.6 $17.7 $3.1 $5.1 $2.8 $13.0 $7.3 $54.2 $28.2 
 


Dec 31,
2022
Sep 30, 2022 1
Jun 30, 2022Mar 31, 2022Dec 31,
2021		Sep 30, 2021Jun 30, 2021Mar 31, 2021
Insurance Reserves:
Future Policyholder Benefits$3,496.4 $3,505.0 $3,486.3 $3,467.5 $3,454.1 $3,436.1 $3,466.4 $3,448.0 
Incurred Losses and LAE Reserves:
Life53.3 55.7 56.7 63.6 60.7 62.3 58.8 68.1 
Accident and Health4.3 23.4 25.0 25.2 26.1 25.7 26.4 25.5 
Property2.3 3.6 3.1 3.1 3.6 7.4 4.4 5.4 
Total Incurred Losses and LAE Reserves59.9 82.7 84.8 91.9 90.4 95.4 89.6 99.0 
Insurance Reserves$3,556.3 $3,587.7 $3,571.1 $3,559.4 $3,544.5 $3,531.5 $3,556.0 $3,547.0 
1 Includes reserves classified as Held-for-Sale Liabilities on the Condensed Consolidated Balance Sheets. See Note 5, “Dispositions,” for more information.

 

24


Kemper Corporation
Life & Health Insurance Segment
Life Insurance - Results of Operations and Selected Financial Information
(Dollars in Millions)
(Unaudited)
 Three Months EndedYear Ended
 Dec 31,
2022		Sep 30, 2022Jun 30, 2022Mar 31, 2022Dec 31, 2021Sep 30, 2021Jun 30, 2021Mar 31, 2021Dec 31,
2022		Dec 31,
2021
Results of Operations  
Earned Premiums$101.1 $100.4 $102.9 $101.3 $101.5 $101.5 $100.6 $98.1 $405.7 $401.7 
Net Investment Income51.0 51.0 60.1 47.9 49.3 47.0 50.9 49.6 210.0 196.8 
Change in Value of Alternative Energy Partnership Investments0.3 0.1 (1.3)(4.0)(3.5)(5.8)(1.9)(3.8)(4.9)(15.0)
Other Income0.1 (0.1)(1.1)— (1.6)— — — (1.1)(1.6)
Total Revenues152.5 151.4 160.6 145.2 145.7 142.7 149.6 143.9 609.7 581.9 
Policyholders’ Benefits and Incurred Losses and LAE75.7 78.6 84.1 90.6 88.2 87.3 81.9 87.9 329.0 345.3 
Insurance Expenses58.5 62.5 58.9 57.4 60.5 61.5 55.6 58.0 237.3 235.6 
Operating Income (Loss)18.3 10.3 17.6 (2.8)(3.0)(6.1)12.1 (2.0)43.4 1.0 
Income Tax Benefit (Expense)(2.0)(0.5)(2.4)2.6 2.4 8.4 (0.1)8.0 (2.3)18.7 
Total Product Line Operating Income (Loss)$16.3 $9.8 $15.2 $(0.2)$(0.6)$2.3 $12.0 $6.0 $41.1 $19.7 


Kemper Corporation
Life & Health Insurance Segment
Accident & Health Insurance - Results of Operations and Selected Financial Information
(Dollars in Millions)
(Unaudited)
 Three Months EndedYear Ended
 Dec 31,
2022		Sep 30, 2022Jun 30, 2022Mar 31, 2022Dec 31, 2021Sep 30, 2021Jun 30, 2021Mar 31, 2021Dec 31,
2022		Dec 31,
2021
Results of Operations  
Earned Premiums$31.4 $45.9 $45.1 $45.8 $47.6 $47.0 $47.9 $47.4 $168.2 $189.9 
Net Investment Income0.8 0.8 1.0 0.7 0.9 0.9 0.8 1.0 3.3 3.6 
Change in Value of Alternative Energy Partnership Investments— — — (0.1)(0.1)(0.1)— (0.1)(0.1)(0.3)
Other Income0.1 0.1 0.3 — — 0.1 0.1 0.1 0.5 0.3 
Total Revenues32.3 46.8 46.4 46.4 48.4 47.9 48.8 48.4 171.9 193.5 
Policyholders’ Benefits and Incurred Losses and LAE16.2 22.3 24.5 23.5 21.9 22.9 26.8 24.5 86.5 96.1 
Insurance Expenses15.8 22.4 20.1 20.8 21.5 23.5 22.2 24.4 79.1 91.6 
Operating Income (Loss)0.3 2.1 1.8 2.1 5.0 1.5 (0.2)(0.5)6.3 5.8 
Income Tax Benefit (Expense)0.1 (0.4)(0.4)(0.4)(1.0)(0.2)0.1 0.2 (1.1)(0.9)
Total Product Line Net Operating Income (Loss)$0.4 $1.7 $1.4 $1.7 $4.0 $1.3 $(0.1)$(0.3)$5.2 $4.9 
25

Kemper Corporation
Life & Health Insurance Segment
Property Insurance - Results of Operations and Selected Financial Information
(Dollars in Millions)
(Unaudited)
 Three Months EndedYear Ended
 Dec 31,
2022		Sep 30, 2022Jun 30, 2022Mar 31, 2022Dec 31, 2021Sep 30, 2021Jun 30, 2021Mar 31, 2021Dec 31,
2022		Dec 31,
2021
Results of Operations   
Earned Premiums$12.2 $11.9 $12.1 $14.3 $15.1 $15.6 $15.7 $15.5 $50.5 $61.9 
Net Investment Income0.8 0.8 0.8 0.8 0.6 0.5 0.7 0.5 3.2 2.3 
Change in Value of Alternative Energy Partnership Investments— — — (0.3)(0.1)(0.2)(0.1)(0.1)(0.3)(0.5)
Total Revenues13.0 12.7 12.9 14.8 15.6 15.9 16.3 15.9 53.4 63.7 
Incurred Losses and LAE related to:
Current Year:
Non-catastrophe Losses and LAE2.0 2.8 3.6 4.1 3.2 3.6 4.2 3.2 12.5 14.2 
Catastrophe Losses and LAE(0.6)1.4 0.6 0.4 2.9 5.7 2.5 1.9 1.8 13.0 
Prior Years:
Non-catastrophe Losses and LAE0.1 0.1 0.5 0.6 — 0.4 0.1 0.7 1.3 1.2 
Catastrophe Losses and LAE— 0.4 0.2 0.9 — (0.4)(0.2)0.5 1.5 (0.1)
Total Incurred Losses and LAE1.5 4.7 4.9 6.0 6.1 9.3 6.6 6.3 17.1 28.3 
Insurance Expenses6.4 6.6 6.6 6.9 7.5 7.9 8.4 7.9 26.5 31.7 
Operating Income (Loss)5.1 1.4 1.4 1.9 2.0 (1.3)1.3 1.7 9.8 3.7 
Income Tax Benefit (Expense)(1.0)(0.3)(0.3)(0.3)(0.3)0.5 (0.2)(0.1)(1.9)(0.1)
Total Product Line Net Operating Income (Loss)$4.1 $1.1 $1.1 $1.6 $1.7 $(0.8)$1.1 $1.6 $7.9 $3.6 
Ratios Based On Earned Premiums
Current Year Non-catastrophe Losses and LAE Ratio16.4 %23.5 %29.7 %28.7 %21.2 %23.1 %26.8 %20.6 %24.7 %23.0 %
Current Year Catastrophe Losses and LAE Ratio(4.9)11.8 5.0 2.8 19.2 36.5 15.9 12.3 3.6 21.0 
Prior Years Non-catastrophe Losses and LAE Ratio0.8 0.8 4.1 4.2 — 2.6 0.6 4.5 2.6 1.9 
Prior Years Catastrophe Losses and LAE Ratio— 3.4 1.7 6.3 — (2.6)(1.3)3.2 3.0 (0.2)
Total Incurred Loss and LAE Ratio12.3 39.5 40.5 42.0 40.4 59.6 42.0 40.6 33.9 45.7 
Insurance Expense Ratio52.5 55.5 54.5 48.3 49.7 50.6 53.5 51.0 52.5 51.2 
Combined Ratio64.8 %95.0 %95.0 %90.3 %90.1 %110.2 %95.5 %91.6 %86.4 %96.9 %
Underlying Combined Ratio 1
Current Year Non-catastrophe Losses and LAE Ratio16.4 %23.5 %29.7 %28.7 %21.2 %23.1 %26.8 %20.6 %24.7 %23.0 %
Insurance Expense Ratio52.5 55.5 54.5 48.3 49.7 50.6 53.5 51.0 52.5 51.2 
Underlying Combined Ratio68.9 %79.0 %84.2 %77.0 %70.9 %73.7 %80.3 %71.6 %77.2 %74.2 %
Non-GAAP Measure Reconciliation
Combined Ratio64.8 %95.0 %95.0 %90.3 %90.1 %110.2 %95.5 %91.6 %86.4 %96.9 %
Less:
Current Year Catastrophe Losses and LAE Ratio(4.9)11.8 5.0 2.8 19.2 36.5 15.9 12.3 3.6 21.0 
Prior Years Non-catastrophe Losses and LAE Ratio0.8 0.8 4.1 4.2 — 2.6 0.6 4.5 2.6 1.9 
Prior Years Catastrophe Losses and LAE Ratio— 3.4 1.7 6.3 — (2.6)(1.3)3.2 3.0 (0.2)
Underlying Combined Ratio68.9 %79.0 %84.2 %77.0 %70.9 %73.7 %80.3 %71.6 %77.2 %74.2 %
1 Underlying Combined Ratio is a non-GAAP measure, which is computed as the difference between three operating ratios: the combined ratio, the effect of catastrophes (excluding development of prior-year catastrophes) on the combined ratio and the effect of prior-year reserve development at the reporting date (including development on prior-year catastrophes) on the combined ratio.
26


Kemper Corporation
Expenses
(Dollars in Millions)
(Unaudited)
 Three Months EndedYear Ended
 Dec 31,
2022		Sep 30, 2022Jun 30, 2022Mar 31, 2022Dec 31, 2021Sep 30, 2021Jun 30, 2021Mar 31, 2021Dec 31,
2022		Dec 31,
2021
Insurance Expenses: 
Commissions$165.7 $176.3 $190.9 $191.9 $192.3 $210.0 $220.1 $195.2 $724.8 $817.6 
General Expenses86.4 93.5 91.4 87.1 87.5 85.1 82.3 84.6 358.4 339.5 
Premium Taxes25.3 23.6 25.2 25.4 25.2 26.5 27.2 25.4 99.5 104.3 
Total Costs Incurred277.4 293.4 307.5 304.4 305.0 321.6 329.6 305.2 1,182.7 1,261.4 
Net Policy Acquisition Costs Deferred9.5 7.3 (0.5)(2.5)(1.0)(23.8)(41.1)(22.4)13.8 (88.3)
Amortization of Valuation of Business Acquired ("VOBA")0.7 0.6 0.7 2.1 5.1 13.5 25.5 0.9 4.1 45.0 
Insurance Expenses287.6 301.3 307.7 304.0 309.1 311.3 314.0 283.7 1,200.6 1,218.1 
Loss from Early Extinguishment of Debt— — — 3.7 — — — — 3.7 — 
Interest and Other Expenses:
Interest Expense13.7 14.3 14.0 12.7 10.6 10.7 11.2 11.1 54.7 43.6 
Other Expenses:
Acquisition and Disposition Related Transaction, Integration, Restructuring and Other Costs35.6 12.7 9.9 4.7 9.2 8.0 10.4 16.3 62.9 43.9 
Other37.2 36.5 29.6 36.7 36.4 33.2 32.5 29.8 140.0 131.9 
Other Expenses72.8 49.2 39.5 41.4 45.6 41.2 42.9 46.1 202.9 175.8 
Interest and Other Expenses86.5 63.5 53.5 54.1 56.2 51.9 54.1 57.2 257.6 219.4 
Total Expenses$374.1 $364.8 $361.2 $361.8 $365.3 $363.2 $368.1 $340.9 $1,461.9 $1,437.5 

27


Kemper Corporation
Details of Investment Performance
(Dollars in Millions)
(Unaudited)
 Three Months EndedYear Ended
 Dec 31,
2022		Sep 30, 2022Jun 30, 2022Mar 31, 2022Dec 31, 2021Sep 30, 2021Jun 30, 2021Mar 31, 2021Dec 31,
2022		Dec 31,
2021
Net Investment Income  
Interest on Fixed Income Securities$81.7 $76.9 $72.8 $68.7 $70.6 $68.4 $69.7 $69.0 $300.1 $277.7 
Dividends on Equity Securities Excluding Alternative Investments2.0 1.1 1.7 1.5 6.1 2.9 4.8 2.1 6.3 15.9 
Alternative Investments:
Equity Method Limited Liability Investments3.3 (0.6)15.3 13.3 5.8 12.0 16.4 22.5 31.3 56.7 
Limited Liability Investments Included in Equity Securities7.2 8.8 18.5 7.6 17.6 9.5 15.3 4.5 42.1 46.9 
Total Alternative Investments10.5 8.2 33.8 20.9 23.4 21.5 31.7 27.0 73.4 103.6 
Short-term Investments2.3 1.1 0.2 0.1 0.4 0.2 (0.8)1.2 3.7 1.0 
Loans to Policyholders5.2 5.5 5.3 5.5 5.4 5.4 5.4 5.5 21.5 21.7 
Real Estate2.5 3.1 2.3 2.2 2.2 2.3 2.4 2.4 10.1 9.3 
Company-Owned Life Insurance
9.9 9.9 9.8 8.3 7.4 7.2 6.5 4.6 37.9 25.7 
Other2.6 1.7 1.7 1.7 1.9 1.9 2.8 0.1 7.7 6.7 
Total Investment Income116.7 107.5 127.6 108.9 117.4 109.8 122.5 111.9 460.7 461.6 
Investment Expenses:
Real Estate2.1 2.3 1.0 2.5 2.9 2.6 2.1 2.1 7.9 9.7 
Other Investment Expenses8.3 7.4 8.1 6.4 6.1 5.3 6.5 6.7 30.2 24.6 
Total Investment Expenses10.4 9.7 9.1 8.9 9.0 7.9 8.6 8.8 38.1 34.3 
Net Investment Income$106.3 $97.8 $118.5 $100.0 $108.4 $101.9 $113.9 $103.1 $422.6 $427.3 
Net Realized Investment Gains (Losses)
Fixed Maturities:
Gains on Sales3.6 $14.2 $13.4 $0.4 20.7 $10.3 $19.2 $13.2 $31.6 $63.4 
Losses on Sales(4.4)(23.9)(2.8)(0.8)(0.4)(0.4)(0.2)(1.1)(31.9)(2.1)
Gains (Losses) on Hedging Activity1.7 (0.3)0.3 — — — — — 1.7 — 
Equity Securities:
Gains on Sales3.1 4.5 0.1 2.0 2.3 0.1 — 1.7 9.7 4.1 
Losses on Sales(0.1)(6.6)— (0.1)(0.5)(0.2)— — (6.8)(0.7)
Equity Method Limited Liability Investments:
Gains on Sales— — — — — 0.4 — — — 0.4 
Losses on Sales— — — — — — — — — — 
Real Estate:
Gains on Sales— — — — — (0.1)0.2 — — 0.1 
Losses on Sales— — — — (0.4)— — — — (0.4)
Net Realized Investment Gains (Losses)$3.9 $(12.1)$11.0 $1.5 $21.7 $10.1 $19.2 $13.8 $4.3 $64.8 
Net Impairment Losses Recognized in Earnings
Fixed Maturities$(3.7)$(8.3)$(4.9)$(8.9)$(3.1)$0.5 $(0.6)$(3.2)$(25.8)$(6.4)
Equity Securities— — — — (0.1)(0.7)(2.6)(0.8)— (4.2)
Real Estate— — — — — (0.4)— — — (0.4)
Net Impairment Losses Recognized in Earnings$(3.7)$(8.3)$(4.9)$(8.9)$(3.2)$(0.6)$(3.2)$(4.0)$(25.8)$(11.0)
 
28


Kemper Corporation
Details of Invested Assets
(Dollars in Millions)
(Unaudited)
 Dec 31, 2022Dec 31, 2021Dec 31, 2020
 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
$528.0 6.0 %$637.4 6.1 %$585.3 5.6 %
States and Political Subdivisions
1,568.9 17.8 1,890.1 18.2 1,589.5 15.2 
Foreign Governments
4.1 — 5.5 0.1 5.2 — 
Corporate Securities:
Bonds and Notes
3,539.4 40.4 4,386.9 42.2 4,425.4 42.5 
Redeemable Preferred Stocks
8.0 0.1 7.4 0.1 7.5 0.1 
Collateralized Loan Obligations953.9 10.9 752.1 7.2 767.7 7.4 
Other Mortgage- and Asset-backed
292.5 3.3 307.5 3.0 225.3 2.2 
Total Fixed Maturities Reported at Fair Value
6,894.8 78.5 7,986.9 76.9 7,605.9 73.0 
Equity Securities Reported at Fair Value:
Preferred Stocks
39.8 0.5 51.8 0.5 59.1 0.6 
Common Stocks
2.1 — 21.8 0.2 10.8 0.1 
Other Equity Interests:
Exchange Traded Funds
12.2 0.1 432.0 4.2 496.6 4.8 
Limited Liability Companies and Limited Partnerships
189.1 2.2 325.0 3.1 292.0 2.8 
Total Equity Securities Reported at Fair Value
243.2 2.8 830.6 8.0 858.5 8.2 
Equity Method Limited Liability Investments
217.0 2.5 241.9 2.3 204.0 2.0 
Alternative Energy Partnership Investments16.3 0.2 39.6 0.4 21.3 0.2 
Short-term Investments at Cost which Approximates Fair Value
278.4 3.2 284.1 2.7 875.4 8.4 
Company Owned Life Insurance586.5 6.7 448.1 4.3 327.4 3.1 
Loans to Policyholders283.4 3.2 286.2 2.8 297.9 2.9 
Other Investments:
Equity Securities Reported at Modified Cost38.4 0.4 32.3 0.3 40.1 0.4 
Convertible Securities at Fair Value43.3 0.5 46.4 0.5 39.9 0.4 
Real Estate at Depreciated Cost93.6 1.1 94.0 0.9 98.7 0.9 
Mortgage Loans91.1 1.0 96.8 0.9 54.6 0.5 
Other3.5 — 0.5 — 0.4 — 
Total Other Investments
269.9 3.0 270.0 2.6 233.7 2.2 
Total Investments
$8,789.5 100.0 %$10,387.4 100.0 %$10,424.1 100.0 %
1 Sum of percentages for individual lines may not equal subtotals and grand total due to rounding.
29

Kemper Corporation
Details of Invested Assets (continued)
(Dollars in Millions)
(Unaudited)
 Dec 31, 2022Dec 31, 2021Dec 31, 2020
 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
$4,896.4 71.0 %$5,351.6 67.0 %$4,759.9 62.6 %
BBB
1,687.4 24.5 2,215.1 27.7 2,355.6 31.0 
BB, B
239.7 3.5 331.0 4.2 353.1 4.6 
CCC or Lower
71.3 1.0 89.2 1.1 137.3 1.8 
Total Investments in Fixed Maturities
$6,894.8 100.0 %$7,986.9 100.0 %$7,605.9 100.0 %
Duration (in Years)
Total Investments in Fixed Maturities
8.2 8.5 7.8 

30


Kemper Corporation
Investment Concentration
(Dollars in Millions)
(Unaudited)
 Dec 31, 2022Dec 31, 2021Dec 31, 2020
Fair Value of Non-governmental Fixed Maturities by Industry
AmountPercent
of Total
Investments		AmountPercent
of Total
Investments		AmountPercent
of Total
Investments
Finance, Insurance and Real Estate
$2,007.5 22.8 %$1,996.7 19.2 %$1,916.3 18.4 %
Manufacturing
1,085.9 12.4 1,571.0 15.1 1,633.5 15.7 
Transportation, Communication and Utilities
733.7 8.3 815.8 7.9 825.5 7.9 
Services
602.4 6.9 617.5 5.9 581.3 5.6 
Mining
173.3 2.0 254.3 2.4 285.7 2.7 
Retail Trade
165.1 1.9 171.4 1.7 172.6 1.7 
Construction11.7 0.1 13.1 0.1 — — 
Other
14.2 0.2 14.1 0.1 11.0 0.1 
Total Fair Value of Non-governmental Fixed Maturities
$4,793.8 54.6 %$5,453.9 52.4 %$5,425.9 52.1 %
 
Dec 31, 2022
Ten Largest Investment Exposures 1
Fair
Value		Percent
of Total
Investments
Fixed Maturities:
States including their Political Subdivisions:
Texas$139.0 1.6 %
California126.7 1.4 
New York85.8 1.0 
Michigan83.9 1.0 
Georgia78.5 0.9 
Louisiana64.3 0.7 
Pennsylvania60.9 0.7 
Florida57.1 0.6 
Colorado50.5 0.6 
Massachusetts47.9 0.5 
Total$794.6 9.0 %
1Excluding Investments in U.S. Government and Government Agencies and Authorities at December 31, 2022.

 

31


Kemper Corporation
Municipal Bond Securities
(Dollars in Millions)
(Unaudited)
 Dec 31, 2022
State
General
Obligation		Political
Subdivision
General
Obligation		RevenueTotal Fair
Value
Percent
of Total
Muni Bond1
Percent
of Total
Investments1
Texas$20.3 $113.4 $5.3 $139.0 8.9 %1.6 %
California10.5 116.2 — 126.7 8.1 1.4 
New York17.9 67.9 — 85.8 5.5 1.0 
Michigan— 73.0 10.9 83.9 5.3 1.0 
Georgia5.9 68.4 4.2 78.5 5.0 0.9 
Louisiana5.1 27.0 32.2 64.3 4.1 0.7 
Pennsylvania2.7 58.2 — 60.9 3.9 0.7 
Florida— 57.1 — 57.1 3.6 0.6 
Colorado— 50.5 — 50.5 3.2 0.6 
Massachusetts1.3 39.2 7.4 47.9 3.1 0.5 
Oregon2.2 20.8 24.7 47.7 3.0 0.5 
Missouri1.1 41.0 — 42.1 2.7 0.5 
Washington1.3 30.3 7.7 39.3 2.5 0.4 
Ohio— 38.5 — 38.5 2.5 0.4 
New Mexico— 38.5 — 38.5 2.5 0.4 
Illinois0.5 36.3 — 36.8 2.3 0.4 
Virginia— 28.9 6.3 35.2 2.2 0.4 
Minnesota2.1 32.9 — 35.0 2.2 0.4 
Indiana— 33.7 — 33.7 2.1 0.4 
Maryland2.4 27.7 2.0 32.1 2.0 0.4 
Connecticut— 16.4 13.2 29.6 1.9 0.3 
Tennessee4.2 19.0 3.2 26.4 1.7 0.3 
District of Columbia— 20.1 6.3 26.4 1.7 0.3 
Mississippi— 10.5 12.2 22.7 1.4 0.3 
Rhode Island1.6 20.4 — 22.0 1.4 0.3 
Oklahoma— 21.9 — 21.9 1.4 0.2 
Arizona0.8 20.2 — 21.0 1.3 0.2 
North Carolina1.7 18.3 — 20.0 1.3 0.2 
New Hampshire0.4 17.7 — 18.1 1.2 0.2 
Utah— 16.7 — 16.7 1.1 0.2 
South Carolina— 15.6 — 15.6 1.0 0.2 
Nebraska5.9 9.3 — 15.2 1.0 0.2 
North Dakota— 14.9 — 14.9 0.9 0.2 
Alabama— 14.1 — 14.1 0.9 0.2 
Kentucky— 13.3 — 13.3 0.8 0.2 
Iowa— 11.4 — 11.4 0.7 0.1 
Montana— 10.6 — 10.6 0.7 0.1 
Alaska2.7 5.9 1.6 10.2 0.6 0.1 
Idaho— 9.7 — 9.7 0.6 0.1 
All Other States10.4 40.2 6.5 57.1 3.6 0.6 
Total$101.0 $1,325.7 $143.7 $1,570.4 100.0 %17.9 %
1 Sum of percentages for individual lines may not equal total due to rounding.
32


Kemper Corporation
Investments in Limited Liability
Companies and Limited Partnerships
(Dollars in Millions)
(Unaudited)
 Unfunded
Commitment		Reported Value
Asset ClassDec 31,
2022		Dec 31,
2022		Dec 31, 2021
Reported as Equity Method Limited Liability Investments:
Mezzanine Debt$51.6 $114.3 $120.0 
Senior Debt42.0 21.6 27.5 
Distressed Debt— 9.4 21.7 
Secondary Transactions1.7 9.3 11.7 
Leveraged Buyout0.6 8.9 8.7 
Growth Equity— 1.2 0.7 
Real Estate— 43.3 29.9 
Hedge Fund— 0.5 8.7 
Other— 8.5 13.0 
Total Equity Method Limited Liability Investments95.9 217.0 241.9 
Alternative Energy Partnership Investments— 16.3 39.6 
Reported as Other Equity Interests at Fair Value:
Mezzanine Debt56.0 106.0 129.3 
Senior Debt6.0 21.9 29.9 
Distressed Debt13.0 12.5 44.9 
Secondary Transactions4.2 3.5 4.0 
Hedge Funds— 18.1 82.7 
Leveraged Buyout9.0 21.6 32.2 
Growth Equity7.9 5.4 2.0 
Other0.2 0.1 — 
Total Reported as Other Equity Interests at Fair Value96.3 189.1 325.0 
Reported as Other Equity Interests at Modified Cost:
Other— 8.3 7.7 
Total Reported as Other Equity Interests at Modified Cost— 8.3 7.7 
Total Investments in Limited Liability Companies and Limited Partnerships$192.2 $430.7 $614.2 

33

Kemper Corporation
Definitions of Non-GAAP Financial Measures

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

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

Book Value Per Share Excluding Net Unrealized (Gains) Losses 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) losses 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) losses 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) Losses 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) losses 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) losses on fixed income securities and goodwill in conjunction with book value per share to identify and analyze the change in net worth excluding goodwill attributable to management efforts between periods. The Company believes the non-GAAP financial measure is useful to investors because it eliminates the effect of items that can fluctuate significantly from period to period and are generally driven by economic developments, primarily capital market conditions, the magnitude and timing of which are not influenced by management. The Company believes it enhances understanding and comparability of performance by highlighting underlying business activity and profitability drivers.

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

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

Significant non-recurring items are excluded when (a) the nature of the charge or gain is such that it is reasonably unlikely to recur within two years, and (b) there has been no similar charge or gain within the prior two years. The most directly comparable GAAP financial measure is Net Income (Loss). There were no applicable significant non-recurring items that the Company excluded from the calculation of Adjusted Consolidated Net Operating Income for the year ended December 31, 2022 or 2021.

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

Kemper Corporation
Definitions of Non-GAAP Financial Measures (continued)
A reconciliation of Net Income (Loss) to Adjusted Consolidated Net Operating Income is presented below:
 Three Months EndedYear Ended
Dollars in Millions (Unaudited)Dec 31,
2022		Sep 30, 2022Jun 30, 2022Mar 31, 2022Dec 31, 2021Sep 30, 2021Jun 30, 2021Mar 31, 2021Dec 31,
2022		Dec 31,
2021
Net Income (Loss)$(55.5)$(76.2)$(74.7)$(94.8)$(105.8)$(75.3)$(62.6)$123.2 $(301.2)$(120.5)
Less Net Income (Loss) From:
Income (Loss) from Change in Fair Value of Equity and Convertible Securities— (8.8)(32.0)(22.3)17.5 (0.5)32.3 41.2 (63.1)90.5 
Net Realized Investment Gains (Losses)3.1 (9.6)8.7 1.2 17.2 7.9 15.2 10.9 3.4 51.2 
Impairment Losses(2.9)(6.6)(3.9)(7.0)(2.5)(0.5)(2.5)(3.2)(20.4)(8.7)
Acquisition and Disposition Related Transaction, Integration, Restructuring and Other Costs(29.1)(20.7)(7.8)(3.7)(7.2)(6.4)(8.2)(12.9)(61.3)(34.7)
Debt Extinguishment, Pension and Other Charges— — — (2.9)— — — — (2.9)— 
Adjusted Consolidated Net Operating Income (Loss)$(26.6)$(30.5)$(39.7)$(60.1)$(130.8)$(75.8)$(99.4)$87.2 $(156.9)$(218.8)
Adjusted Consolidated Net Operating Income Per Unrestricted Share is a non-GAAP financial measure. It is computed by dividing Adjusted Consolidated Net Operating Income by the weighted average unrestricted shares outstanding. The most directly comparable GAAP financial measure is Net Income (Loss) Per Unrestricted Share ‐ basic. A reconciliation of Net Income (Loss) Per Unrestricted Share-basic to Adjusted Consolidated Net Operating Income (Loss) Per Unrestricted Share-basic is presented below:
 Three Months EndedYear Ended
(Unaudited)Dec 31,
2022		Sep 30, 2022Jun 30, 2022Mar 31, 2022Dec 31, 2021Sep 30, 2021Jun 30, 2021Mar 31, 2021Dec 31,
2022		Dec 31,
2021
Net Income (Loss) Per Unrestricted Share$(0.87)$(1.19)$(1.17)$(1.49)$(1.66)$(1.18)$(0.97)$1.88 $(4.72)$(1.87)
Less Net Income (Loss) Per Unrestricted Share From:
Income (Loss) from Change in Fair Value of Equity and Convertible Securities— (0.14)(0.50)(0.35)0.27 (0.01)0.50 0.63 (0.99)1.41 
Net Realized Investment Gains (Losses)0.05 (0.15)0.13 0.02 0.27 0.13 0.24 0.17 0.05 0.80 
Impairment Losses(0.05)(0.10)(0.06)(0.11)(0.04)(0.01)(0.04)(0.05)(0.32)(0.14)
Acquisition and Disposition Related Transaction, Integration, Restructuring and Other Costs(0.46)(0.32)(0.12)(0.06)(0.11)(0.10)(0.13)(0.20)(0.95)(0.54)
Debt Extinguishment, Pension and Other Charges— — — (0.05)— — — — (0.05)— 
Adjusted Consolidated Net Operating Income (Loss) Per Unrestricted Share$(0.41)$(0.48)$(0.62)$(0.94)$(2.05)$(1.19)$(1.54)$1.33 $(2.46)$(3.40)
    

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

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

Kemper Corporation
As Adjusted for Acquisitions Non-GAAP Financial Measure

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

36

Kemper Corporation
As Adjusted for Acquisitions - Consolidated Financial Highlights
(Dollars in Millions)
(Unaudited)
 Three Months EndedYear Ended
 Dec 31, 2022Sep 30, 2022Jun 30, 2022Mar 31, 2022Dec 31, 2021Sep 30, 2021Jun 30, 2021Mar 31, 2021Dec 31,
2022		Dec 31,
2021
Earned Premiums
Kemper - GAAP As Reported
$1,267.0 $1,307.0 $1,353.7 $1,338.6 $1,359.1 $1,356.1 $1,337.7 $1,200.8 $5,266.3 $5,253.7 
AAC - Prior to Acquisition— — — — — — — 87.9 — 87.9 
As Adjusted for Acquisitions1
$1,267.0 $1,307.0 $1,353.7 $1,338.6 $1,359.1 $1,356.1 $1,337.7 $1,288.7 $5,266.3 $5,341.6 
Adjusted Consolidated Net Operating Income (Loss)
Kemper
$(26.6)$(30.5)$(39.7)$(60.1)$(130.8)$(75.8)$(99.4)$87.2 $(156.9)$(218.8)
AAC - Prior to Acquisition— — — — — — — 12.3 — 12.3 
Less: Impact of Purchase Accounting
(3.0)(3.5)(3.4)(3.5)(4.5)(6.7)(10.1)(1.8)(13.4)(23.1)
As Adjusted for Acquisitions1
$(23.6)$(27.0)$(36.3)$(56.6)$(126.3)$(69.1)$(89.3)$101.3 $(143.5)$(183.4)
1 As Adjusted for Acquisitions is a non-GAAP financial measure, which is computed by excluding the impact of purchase accounting. See page 36.

37

Kemper Corporation
Selected Financial Information
As Adjusted for Acquisitions - Specialty Property & Casualty Insurance Segment
(Dollars in Millions)
(Unaudited)
 Three Months EndedYear Ended
Dec 31, 2022Sep 30, 2022Jun 30, 2022Mar 31, 2022Dec 31, 2021Sep 30, 2021Jun 30, 2021Mar 31, 2021Dec 31,
2022		Dec 31,
2021
Earned Premiums
Kemper Specialty P&C - GAAP As Reported$981.6 $999.5 $1,043.7 $1,021.6 $1,032.3 $1,028.3 $1,010.3 $877.6 $4,046.4 $3,948.5 
AAC - Prior to Acquisition— — — — — — — 87.9 — 87.9 
As Adjusted for Acquisitions1
$981.6 $999.5 $1,043.7 $1,021.6 $1,032.3 $1,028.3 $1,010.3 $965.5 $4,046.4 $4,036.4 
Current Year Non-CAT Losses and LAE
Kemper Specialty P&C - GAAP As Reported$859.3 $868.0 $930.2 $911.7 $1,028.5 $924.4 $877.4 $650.0 $3,569.2 $3,480.3 
AAC - Prior to Acquisition— — — — — — — 62.0 — 62.0 
Less: Impact of Purchase Accounting
Amortization of Fair Value Adjustment to Unpaid Loss and LAE— 0.1 0.1 0.3 0.2 0.3 0.3 0.4 0.5 1.2 
As Adjusted for Acquisitions1
$859.3 $867.9 $930.1 $911.4 $1,028.3 $924.1 $877.1 $711.6 $3,568.7 $3,541.1 
Insurance Expenses
Kemper Specialty P&C - GAAP As Reported$198.4 $198.8 $205.4 $199.3 $204.4 $194.2 $205.6 $170.3 $801.9 $774.5 
AAC - Prior to Acquisition— — — — — — — 13.1 — 13.1 
Less: Impact of Purchase Accounting
Amortization of VOBA0.1 0.1 0.1 1.4 4.5 12.8 24.8 0.3 1.7 42.4 
Amortization of Estimated Legacy AAC Deferred Policy Acquisition Costs ("DPAC")— — — (0.8)(2.8)(8.4)(16.0)— (0.8)(27.2)
Amortization of VOBA, Net of Legacy DPAC0.1 0.1 0.1 0.6 1.7 4.4 8.8 0.3 0.9 15.2 
Amortization of Finite Life Intangible Assets Acquired2.5 3.2 2.9 3.1 3.1 3.1 3.0 0.9 11.7 10.1 
Other1.2 1.0 1.2 1.0 1.1 1.1 1.1 1.1 4.4 4.4 
Total Purchase Accounting Adjustments3.8 4.3 4.2 4.7 5.9 8.6 12.9 2.3 17.0 29.7 
As Adjusted for Acquisitions1
$194.6 $194.5 $201.2 $194.6 $198.5 $185.6 $192.7 $181.1 $784.9 $757.9 
Underlying Combined Ratio1
Kemper Specialty P&C Segment - GAAP As Reported107.8 %106.8 %108.8 %108.7 %119.4 %108.9 %107.3 %93.5 %108.0 %107.7 %
As Adjusted for Acquisitions1
107.4 %106.3 %108.4 %108.3 %118.8 %107.9 %105.9 %92.5 %107.6 %106.5 %
1 As Adjusted for Acquisitions is a non-GAAP financial measure, which is computed by excluding the impact of purchase accounting. See page 36.

38

Kemper Corporation
Selected Financial Information
As Adjusted for Acquisitions - Specialty Personal Automobile Insurance
(Dollars in Millions)
(Unaudited)
 Three Months EndedYear Ended
Dec 31, 2022Sep 30, 2022Jun 30, 2022Mar 31, 2022Dec 31, 2021Sep 30, 2021Jun 30, 2021Mar 31, 2021Dec 31,
2022		Dec 31,
2021
Earned Premiums
Kemper Specialty Personal Automobile Insurance - GAAP As Reported$830.4 $858.8 $905.8 $901.7 $918.1 $920.6 $909.6 $785.4 $3,496.7 $3,533.7 
AAC - Prior to Acquisition— — — — — — — 87.9 — 87.9 
As Adjusted for Acquisitions1
$830.4 $858.8 $905.8 $901.7 $918.1 $920.6 $909.6 $873.3 $3,496.7 $3,621.6 
Current Year Non-CAT Losses and LAE
Kemper Specialty Personal Automobile Insurance - GAAP As Reported$739.8 $757.8 $828.6 $827.7 $938.5 $843.9 $805.1 $586.4 $3,153.9 $3,173.9 
AAC - Prior to Acquisition— — — — — — — 62.0 — 62.0 
Less: Impact of Purchase Accounting
Amortization of Fair Value Adjustment to Unpaid Loss and LAE— 0.1 — 0.3 0.2 0.3 0.2 0.3 0.4 1.0 
As Adjusted for Acquisitions1
$739.8 $757.7 $828.6 $827.4 $938.3 $843.6 $804.9 $648.1 $3,153.5 $3,234.9 
Insurance Expenses
Kemper Specialty Personal Automobile Insurance - GAAP As Reported$172.2 $172.9 $179.7 $177.3 $184.3 $176.0 $187.7 $155.3 $702.1 $703.3 
AAC - Prior to Acquisition— — — — — — — 13.1 — 13.1 
Less: Impact of Purchase Accounting
Amortization of VOBA0.1 — 0.1 1.4 4.4 12.8 24.7 0.2 1.6 42.1 
Amortization of Estimated Legacy AAC Deferred Policy Acquisition Costs ("DPAC")— — — (0.8)(2.8)(8.4)(16.0)— (0.8)(27.2)
Amortization of VOBA, Net of Legacy DPAC0.1 — 0.1 0.6 1.6 4.4 8.7 0.2 0.8 14.9 
Amortization of Finite Life Intangible Assets Acquired2.4 3.0 2.7 2.9 3.0 2.9 2.8 0.7 11.0 9.4 
Other0.9 0.8 1.0 0.8 0.9 0.8 0.9 0.9 3.5 3.5 
Total Purchase Accounting Adjustments3.4 3.8 3.8 4.3 5.5 8.1 12.4 1.8 15.3 27.8 
As Adjusted for Acquisitions1
$168.8 $169.1 $175.9 $173.0 $178.8 $167.9 $175.3 $166.6 $686.8 $688.6 
Underlying Combined Ratio1
Kemper Specialty Personal Automobile Insurance - GAAP As Reported109.8 %108.4 %111.3 %111.5 %122.3 %110.8 %109.1 %94.5 %110.3 %109.7 %
As Adjusted for Acquisitions1
109.4 %107.9 %110.9 %110.9 %121.7 %109.9 %107.8 %93.3 %109.8 %108.3 %
1 As Adjusted for Acquisitions is a non-GAAP financial measure, which is computed by excluding the impact of purchase accounting. See page 36.

39
Earnings Call Presentation – 4Q 2022 Fourth Quarter  2022 Earnings  February 2, 2023

 
Earnings Call Presentation – 4Q 2022 Preliminary Matters 2 Cautionary Statements Regarding Forward‐Looking Information This presentation may contain or incorporate by reference information that includes or is based on forward‐looking statements  within the meaning of the safe‐harbor provisions of the Private Securities Litigation Reform Act of 1995. We caution investors  that these forward‐looking statements are not guarantees of future performance, and actual results may differ materially. Such  statements involve known and unknown risks, uncertainties, and other factors, including but not limited to: • changes in the frequency and severity of insurance claims; • claim development and the process of estimating claim reserves; • the impacts of inflation; • supply chain disruption;  • product demand and pricing;  • effects of governmental and regulatory actions; • litigation outcomes; • investment risks; • cybersecurity risks; • impact of catastrophes; and  • other risks and uncertainties detailed in Kemper’s Annual Report on Form 10‐K and subsequent filings with the  Securities and Exchange Commission (“SEC”). The COVID‐19 outbreak and subsequent global pandemic (“Pandemic”) is an extraordinary catastrophe that creates unique  uncertainties and risks. Kemper cannot provide any assurances as to the impacts of the Pandemic and related economic  conditions on Kemper’s operating and financial results. Kemper assumes no obligation to publicly correct or update any forward‐looking statements as a result of events or  developments subsequent to the date of this presentation, including any such statements related to the Pandemic.  Non‐GAAP Financial Measures This presentation contains non‐GAAP financial measures that the company believes are meaningful to investors. Non‐GAAP  financial measures have been reconciled to the most comparable GAAP financial measure.

 
Earnings Call Presentation – 4Q 2022 Leading Insurer Empowering Specialty and Underserved Markets 3 Enabled by a dynamic, diverse and innovative team who act like owners 1 Kemper Auto is equivalent to the Specialty Property & Casualty Insurance Segment Target top quartile value creation for customers, employees and shareholders Require unique  expertise Have limited or  unfocused competition Enable systematic, sustainable  competitive advantages Delivering appropriate  and affordable  insurance and financial  solutions Specialty auto insurance for  underserved markets; Latino,  Hispanic and urban areas Life insurance for  low/modest income customers Target Markets Differentiated Capabilities Product  sophisticationEase of useLow‐cost  management 1 Distribution

 
Earnings Call Presentation – 4Q 2022 Fourth Quarter 2022 Highlights 1 As adjusted for acquisition; see reconciliation on pages 26‐28 2 Non‐GAAP financial measure; please see reconciliation in appendix on pages 20‐25 3 Return on average shareholders’ equity (5‐point average) 4 Normalized profitability improving; results impacted by seasonality and modest adverse development Inflation pressures continued to impact the insurance sector • Elevated severity continues to impact auto insurers, but sequential increases continue to moderate • Economic slowdown beginning to reduce used car prices and salvage values; albeit at different rates Macroeconomic  Environment Profit restoration ongoing; aggressively pursuing all improvement opportunities • Rate‐taking activities exceeded forecast: • Specialty P&C Personal Auto – Filed an additional 20% increase on 58% of the book • Preferred P&C Personal Auto – Filed an additional 16% increase on 15% of the book • Cumulative written rate benefits will continue to earn in at an accelerated rate • Specialty P&C Personal Auto – 49 points of rate on 43% of the book since Q2’21 • Preferred P&C Personal Auto – 18 points of rate on 75% of the book since Q2’21 • LAE, Expense, and Real Estate initiatives ahead of planned targets Actions Taken Underlying profitability improvement offset by seasonality and modest prior quarter development • Net loss of $56M (‐$0.87/sh), as reported, or $53M (‐$0.82/sh), as adjusted1 • Adjusted consolidated net operating loss2 of $27M (‐$0.41/sh), as reported, or $24M (‐$0.37/sh), as adjusted1 • ‐10% ROAE2,3, ‐15% ROAE2,3 excluding net unrealized (gain)/loss on fixed maturities and goodwill1 4th Quarter  Results Capital and liquidity positions enable the company to continue to invest in core capability  enhancements and navigate environmental challenges • Holding company remains a source of strength for subsidiaries with nearly $1.3B of liquidity • Focused on deleveraging to return to our long‐term target of 17–22% debt‐to‐capital range Balance Sheet  Strength

 
Earnings Call Presentation – 4Q 2022 Fourth Quarter 2022 Financial Highlights 5 Focus remains on restoring business to profitability Actions continue to take hold and earn into financial results Quarter Ended Year Ended ($ in millions, except per share amounts) Dec 31, 2022 Dec 31,  2021 Dec 31,  2022 Dec 31,  2021 Net Income (Loss) – Per Diluted Share $(0.87) $(1.66) $(4.72) $(1.87) Adj. Consolidated Net Op. Income (Loss) – Per Diluted Share1 $(0.41) $(2.05) $(2.46) $(3.40) Tangible BV Per Common Share excluding unrealized gains1  $29.10 $34.44 $29.10 $34.44 Return on Avg. Tangible Common Equity1 (14.9)% (4.9)% (14.9)% (4.9)% Dividend Paid to Shareholders Per Share $0.31 $0.31 $1.24 $1.24 Life Face Value of In‐Force Growth / (Decline) (2.0)% 3.0% (2.0)% 3.0% Specialty P&C Earned Premium Growth2 / (Decline) (4.8)% 6.0% 0.2% 9.1% Specialty P&C PIF Growth / (Decline) (19.2)% 4.5% (19.2)% 4.5% As Adjusted2 Net Income (Loss) – Per Diluted Share $(0.82) $(1.59) $(4.51) $(1.42) Adj. Consolidated Net Op. Income (Loss) – Per Diluted Share1 $(0.37) $(1.98) $(2.25) $(2.85) 1 Non‐GAAP financial measure; see reconciliation in appendix on pages 20‐25; excludes impact of purchase accounting 2 As adjusted for acquisition; see reconciliation on pages 26‐28

 
Earnings Call Presentation – 4Q 2022 Fourth Quarter Normalizing Adjustments 6 Results impacted by seasonality and modest development 1 Non‐GAAP financial measure; see reconciliation in appendix on pages 20‐25 Optimistic on underwriting improvement in 2023 given normalized results Fourth Quarter 2022 Ratios Specialty  P&C (%) Preferred  P&C (%) Pre‐tax Impact ($M) P&C Underlying Combined Ratios1 107.8 106.6 ‐ Adjustments Estimated Seasonality Impact (Range Mid‐point) (1.7) (1.6) 19.0 Net Intra‐year Development Recognized in the Qtr. (0.9) (2.0) 11.3 P&C Other 0.8 ‐ (8.1) Normalized P&C Underlying Combined Ratios 106.0 103.0 $22.2

 
Earnings Call Presentation – 4Q 2022 Kemper P&C Business Reserve Update 7 Strong data and analytics enable efficient reserving practice that appropriately reflects environment 1 Specialty P&C is represented by the Kemper Auto Brand 2 Preferred P&C is equivalent to Kemper Personal Insurance Full Year Prior Year Development Favorable, Inclusive of Modest Adverse Q4 Development • Kemper P&C insurance businesses favorable $17.4M YTD, adverse $7.8M this quarter • Specialty P&C1 favorable $14.0M YTD, adverse $10.1M this quarter • Preferred P&C2 favorable $3.4M YTD, favorable $2.3M this quarter Current Year Prior Quarter Loss and Legal Cost Development this Quarter • Specialty P&C1 adverse of $7.2M • Preferred P&C2 adverse of $2.7M • Driven by: • Elongated settlement timelines for third party claims • Additional defense costs driven by an increased ratio of litigated PIP claims • Salvage values increasing, but less than total loss values The quality and speed with which we generate information continues to allow us to identify and  quickly address loss pattern developments

 
Earnings Call Presentation – 4Q 2022 Streamlining Our Cost Structure 8 Advancing differentiated capabilities to strengthen systematic, sustainable competitive advantages Initiatives accelerate return to profitability and enhance long‐term value creation 61  150  4Q'22 1Q'23 2Q'23 3Q'23 4Q'23 FY'24‐FY'25 Proj. Prog. Total Program Savings ($ millions)• Restructuring and integration pre‐tax  charges of $150M ‐ $200M will produce an  annualized savings of $150M or greater • Since its inception, this program has driven  total run rate savings of $61M, and we have  incurred total pre‐tax charges of $36M (Pre‐tax, $ in millions) 4Q’22 Run Rate Total Program % Reached Ru n  Ra te  S av in gs Loss Adjustment Expense (LAE)  Improvements $34 $80‐$120 28‐43% Enterprise Expense Initiatives (ex‐Real Estate & LAE) $18 $60‐$70 26‐30% Real Estate Optimization $9 $10 90% Total Run Rate Program Savings $61 $150+ 42‐60% Total Earned on Run Rate Savings $14 Associated Charges $36 $150‐$200 18%‐24%

 
Earnings Call Presentation – 4Q 2022 Strong Balance Sheet with Well‐Funded Insurance Entities 9 Significant capital and liquidity positions Initiatives accelerate return to profitability and enhance long‐term value creation 1 The 4Q’22 Risk‐Based Capital Ratios are calculated at the Company Action Level and are estimated. Actual RBC levels are likely to differ materially from these estimates, as  they will be affected by numerous market inputs, none of which will be known prior to February 2, 2023 2 Excludes AOCI: closely aligns with rating agencies and post LDTI implementation 29.0% 23.6% 23.1% 17.6% 23.2% 24.0% 30.2% 2016 2017 2018 2019 2020 2021 2022 Debt‐to‐Capital2 Parent Company Liquidity Risk‐Based Capital Ratios¹ $299  $197  $101  $207  $733  $234  $418  $385  $385  $540  $660  $700  $704  $918  2016 2017 2018 2019 2020 2021 2022 Borrowings Available Under Credit Agreement & from Subs HoldCo Cash & Investments ($ M ) 415 430 410 355 340 355 645 335 290 285 365 330 220 250 2016 2017 2018 2019 2020 2021 2022 Life P&C (ex. AU & AACC) (% ) $684 $867 $641$582 $1,433 $938 $1,336 Debt Cash Flow from Operating Activities  ($ M ) $241  $241  $539  $534  $448  $351  $(220) 2016 2017 2018 2019 2020 2021 2022

 
Earnings Call Presentation – 4Q 2022 Diversified Investment Portfolio with Consistent Returns 10 1Other category includes Equity Securities, which excludes $197M of Other Equity Interests of LP/LLC’s that have been  reclassified into Alternative Investments; COLI represents Company Owned Life Insurance; 2 Bloomberg single‐A rated corporate  credit index, December 31 2022 4.6% 4.2% 5.0% 4.2% 4.6% 4Q'21 1Q'22 2Q'22 3Q'22 4Q'22 55% 18% 6% 6% 5% 7% 3% Other States/ Munis COLI 71% 24% 4% 1% Diversified & Highly‐Rated Portfolio Fixed Maturity Ratings $6.9 Billion A or Higher ≤ CCCB / BB BBB • High quality and liquid portfolio provides safety and  opportunity in volatile markets • New investment yields up 250‐3002 bps over prior‐ year • 4.6% PTE annualized book yield, increase in core  portfolio investment income reflective of the higher  rate environment $85  $79  $85  $90  $95  $23  $21  $34  $8  $11  4Q'21 1Q'22 2Q'22 3Q'22 4Q'22 Core Portfolio Alternative Inv. Portfolio Net Investment Income ($ M ) $119 $100 $108 Highlights Corporates Alternatives U.S Gov’t Portfolio Composition¹ Pre‐Tax Equiv. Annualized Book Yield $8.8 Billion $98 Short Term $106

 
Earnings Call Presentation – 4Q 2022 Fourth Quarter 2022 – Strategic Updates 11 Reciprocal set‐up is underway; review of Kemper Personal Insurance ongoing Initiatives focused on creating long‐term shareholder value 1. Establishment of Reciprocal Exchange Structure: • Submitted initial filing with the Illinois Department of Insurance with respect to reciprocal's formation • Formed Kemper Management LLC to serve as the reciprocal's attorney‐in‐fact • Anticipate writing auto business in the structure during 3Q’23 • Deconsolidation of the exchange is expected within 5 to 7 years 2. Completed the sale of Reserve National Insurance Company (Kemper Health) • Transaction closed on December 1, 2022 3. Strategic review of Kemper Personal Insurance¹ • Business assessment continues; expect additional updates when available 1 Property & Casualty Insurance Segment is represented by our Kemper Personal Insurance brand.

 
Earnings Call Presentation – 4Q 2022 Specialty Property & Casualty Insurance Segment 12 Normalized underwriting profits improving; quarter noise driven by seasonality and modest loss pattern 1 Non‐GAAP financial measure; see reconciliation in appendix on pages 20‐25; excludes impact of purchase accounting; 2 Represents the percent of total book impacted in the quarter and the weighted average rate of actual filings;  3 Period rate goes into effect Business expected to be profitable in 1H’23 with underwriting income by 2H’23 119.4 108.7 108.8 106.8 107.8107.7 108.7 108.8 108.1 108.0 4Q'21 1Q'22 2Q'22 3Q'22 4Q'22 Underlying Combined Ratio1 QTD YTD (% ) Highlights Rate Actions2 Overall Impact Filed Effective3 Written Earned % Prem  Impacted  Wtd Avg Rate % Prem  Impacted  Wtd Avg Rate Cumulative Impact on  Specialty Personal Auto Book 3Q’22 7% 16% 6% 15% 13.7% 4.7% 4Q’22 58% 20% 31% 12% 15.2% 8.0% 1Q’23 ~34% ~28% ~60% ~7% ~22.0% ~11.8% • Atypical adverse prior‐quarter development and seasonality  drove underlying combined ratio change • Sequential improvement in normalized underlying combined  ratio of ~1 pt driven by accelerated earn‐in of rate and  underwriting actions • Filed actions continue to outpace projections • PPA earned rate continues to accelerate • Continued strong profitable Commercial Vehicle growth • Net written premium growth of 33% • Quarter and full year combined ratios of 93.8% and  94.8% respectively Metrics  ($ in millions) 4Q’22 4Q’21 Change vs. 4Q’21 Earned Premiums $982 $1,032 (4.8%) Underlying Loss & LAE Ratio1 87.6% 99.6% (12.0pts) Expense Ratio 20.2% 19.8% 0.4pts Policies In‐Force (000s) 1,779 2,201 (19.2%) Specialty Personal Auto (Rate Activity Since 2Q’21))

 
Earnings Call Presentation – 4Q 2022 Preferred Property & Casualty Insurance Segment [  ] 13 Seasonality, development on prior quarters, and non cat weather impacted results 1 Non‐GAAP financial measure; please see reconciliation in appendix on pages 20‐25 2 Represents the percent of total book impacted in the quarter and the weighted average rate of actual filings  3 Period rate goes into effect Focus remains on restoring profitability 127.1  116.3  113.0  115.4  118.3  73.7  86.7  92.3  85.9  89.2  4Q'21 1Q'22 2Q'22 3Q'22 4Q'22 Underlying Combined Ratio¹ Auto Home & Other Highlights • Underlying loss ratios increased sequentially due to  seasonality, non‐CAT weather, and development on  prior quarters (~$3M) • Filed rate and earned rate activity exceeded  expectations • Catastrophe losses of $8.8M are in line with  expectations • Business remains under strategic review; will share  additional details when available (% ) Metrics ($ in millions) 4Q’22 4Q’21 Change vs. 4Q’21 Auto Earned Premiums $84 $101 (16.8)% Policies In‐Force (000s) 157 205 (23.4)% Home & Other Earned Premiums $57 $61 (6.6)% Policies In‐Force (000s) 170 212 (19.8)% Rate Actions2 Overall Impact Filed Effective3 Written Earned % Prem  Impacted  Wtd Avg  Rate % Prem  Impacted  Wtd Avg  Rate Cumulative Impact on  Preferred Personal Auto Book 3Q’22 40% 18% 33% 7% 9.2% 2.5% 4Q’22 15% 16% 31% 14% 12.2% 4.2% 1Q’23 ~28% ~9% ~23% ~18% ~17.3% ~6.3% Preferred Personal Auto (Rate Activity Since 2Q’21)

 
Earnings Call Presentation – 4Q 2022 Life & Health Insurance Segment 14 On path to achieve pre‐pandemic profitability during second half of 2023 1 Excludes other income and solar credit impairment 2 Annual basis 3 The Life & Health Insurance Segment includes the results of Reserve National through December 1, 2022, the date it was sold. Profitability improving as mortality normalizes towards pre‐pandemic levels $164  $161  $160  $158  $145  $51  $49  $62  $53  $53  4Q'21 1Q'22 2Q'22 3Q'22 4Q'22 Revenues1 ($M) Earned Premiums Net Investment Income Note: Chart may not balance, due to rounding • Annualized Life new business sales at pre‐pandemic levels • Excess mortality continues to moderate • Pre‐tax profitability improvement driven by subsiding pandemic‐related headwinds • Completed the divestiture of Reserve National Insurance Company (Kemper Health) in 4Q’22 • New money yields are at or above our spread assumptions • Expected to provide additional information related to LDTI presentation impact during Investor Day Highlights $198 $222$210$215 $211 Metrics ($ in millions, except per policy amounts) 4Q’223 4Q’21 Change vs. 4Q’21 L&H Net Operating Income $21 $5 320% Life Face Value of In‐Force $20,022 $20,430 (2.0)% Avg. Face Value per Policy $6,246 $6,192 0.9% Avg. Premium per Policy Issued2 $591 $541 9.2% 3

 
Earnings Call Presentation – 4Q 2022 Fourth Quarter Wrap‐Up 15 Business on track to return to profitability during first half of 2023 Remain focused on profit restoration and shareholder value creation Key Takeaways • The financial benefits of strategic initiatives are expected to earn into the book on an accelerated basis • Inputs that underly profitability continue to trend positively • Rate in excess of trend • Mortality improving • Interest rates above pricing assumptions • Restructuring and integration efforts on track to produce targeted expense savings • Reciprocal and Bermuda¹ capital initiatives provide short‐ and long‐term opportunities to further optimize  capital and reduce risk 1 In 3Q'22 Kemper completed the cessation of 80% of Kemper’s Life business to Kemper Bermuda Ltd.

 
Earnings Call Presentation – 4Q 2022 Appendix 16

 
Earnings Call Presentation – 4Q 2022 Significant, rapid  drop in loss trend Actions take time to earn into financials  |  illustrative earned rate vs. loss trend comparison 17 Time (not to scale) Ea rn ed  R at e  an d  Lo ss  T re nd Δ Earned Rate Loss Trend (frequency & severity) Pre‐Pandemic Lockdowns Re‐Opening / Future Rate  filed Rate to zero Predictable loss trend  offset by rate Significant, rapid  rise in loss trend Prior to 2020 2Q’20 – 1Q’21 Current+ Rate  earning‐in ILLUSTRATIVE LOSS  TREND vs. RATE CYCLE Rate meeting /  exceeding loss trend  Implementing Pricing and Underwriting Actions to Combat Trend Target margins return when combination of earned rate and other underwriting actions exceed loss trend

 
Earnings Call Presentation – 4Q 2022 Auto Severity Remains Elevated from Continued Inflationary Pressures 18Source: U.S. Bureau of Labor Statistics • Physical damage severity increased due to higher used car values, replacement parts, and labor costs – Body Work‐related costs increased in Q4, growing at approximately double the rate of US Core Inflation – Value of used cars continued to sharply drop in Q4, but has significantly outpaced other severity inputs since   the beginning of 2021 • Casualty severity moderated in Q4 but remains elevated due to more severe injuries, medical inflation, and  greater attorney representation Price Indices (Indexed to Q4 2018)

 
Earnings Call Presentation – 4Q 2022 2023 Reinsurance Program 19 Renewed Catastrophe XoL Reinsurance; discontinued the Catastrophe Aggregate for 2023 1 Includes year‐end 2022 treaty adjustment for 2021 and 2022 treaty years • Policy placed at 01/01/23 ‐ New limit aligned with risk‐appetite to cover 1‐in‐200  occurrence ‐ Minimizes rating agency cost of capital Catastrophe Excess of Loss Program (XOL): • Total coverage: 95% of $275M in excess of  $50M • Purchased limit was reduced by $25M  versus the prior year due to exposure  changes and model enhancements • Total cost increased by $3.7M1 from 2022 Catastrophe Aggregate Program: • Program was discontinued for 2023 HighlightsCatastrophe Reinsurance Program (Multi‐Year)

 
Earnings Call Presentation – 4Q 2022 Non‐GAAP Financial Measures 20 Book Value Per Share Excluding Net Unrealized (Gains) Losses 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) Losses 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. Kemper believes that Adjusted Consolidated Net Operating Income (Loss) provides investors with a valuable measure of its ongoing performance  because it reveals underlying operational performance trends that otherwise might be less apparent if the items were not excluded. Income (Loss)  from Change in Fair Value of Equity and Convertible Securities, Net Realized Investment Gains (Losses) and Impairment Losses related to investments  included in the Company’s results may vary significantly between periods and are generally driven by business decisions and external economic  developments such as capital market conditions that impact the values of the Company’s investments, the timing of which is unrelated to the  insurance underwriting process. Acquisition 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.

 
Earnings Call Presentation – 4Q 2022 Non‐GAAP Financial Measures 21 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.  As Adjusted for Acquisition amounts are non‐GAAP financial measures. Subsequent to the applicable acquisitions, the As Adjusted for Acquisitions  amounts are computed by subtracting the impact of purchase accounting adjustments from the comparable consolidated GAAP financial measure  reported by Kemper. The Company believes computing and presenting results on an adjusted basis are useful to investors and are used by  management to provide meaningful and comparable year‐over‐year comparisons.

 
Earnings Call Presentation – 4Q 2022 Non‐GAAP Financial Measures 22 Book Value 4Q'22 3Q'22 2Q'22 1Q'22 4Q'21 Book Value Per Share 38.23$     38.16$     44.64$     53.21$     62.93$     Less: Net Unrealized (Gains) Losses on Fixed Maturities Per Share 11.21       12.25       7.39         0.21         (7.89)        Book Value Per Share Excluding Net Unrealized (Gains) Losses on Fixed Maturities 49.44$     50.41$     52.03$     53.42$     55.04$     Less: Goodwill (20.34)     (20.33)     (20.55)     (20.56)     (20.60)     Book Value Per Share Excluding Net Unrealized (Gains) Losses on Fixed Maturities and  Goodwill 29.10$     30.08$     31.48$     32.86$     34.44$     For the Periods Ended 2021 2020 2019 2018 2017 Book Value Per Share 62.93$     69.74$     59.59$     47.10$     41.11$     Less: Net Unrealized (Gains) Losses on Fixed Maturities Per Share (7.89)        (11.07)     (6.51)        (1.70)        (5.54)        Book Value Per Share Excluding Net Unrealized (Gains) Losses on Fixed Maturities 55.04$     58.67$     53.08$     45.40$     35.57$     Less: Goodwill (20.60)     (17.02)     (16.72)     (17.18)     (6.28)        Book Value Per Share Excluding Net Unrealized (Gains) Losses on Fixed Maturities and  Goodwill 34.44$     41.65$     36.36$     28.22$     29.29$     For the Periods Ended

 
Earnings Call Presentation – 4Q 2022 Non‐GAAP Financial Measures 23 Return on Equity 4Q'22 3Q'22 2Q'22 1Q'22 4Q'21 Rolling 12 Month Return on Average Shareholders' Equity (5 Point Avg)  (10.0)%  (10.4)%  (9.4)%  (8.4)%  (2.8)% Less: Net Unrealized (Gains) Losses on Fixed Maturities 0.9% 0.1%  (0.6)%  (0.9)%  (0.4)% Rolling 12 Month Return on Average Shareholders’ Equity Excluding Net Unrealized (Gains)  Losses on Fixed Maturities (5 Point Avg)  (9.1)%  (10.3)%  (10.0)%  (9.3)%  (3.2)% Excluding: Net Unrealized (Gains) Losses on Fixed Maturities (5 Point Avg)  (5.8)%  (6.4)%  (5.9)%  (5.1)%  (1.7)% Excluding: Net Unrealized (Gains) Losses on Fixed Maturities and Goodwill (5 Point Avg)  (14.9)%  (16.7)%  (15.9)%  (14.4)%  (4.9)% For the Periods Ended 2021 2020 2019 2018 2017 Rolling 12 Month Return on Average Shareholders' Equity (5 Point Avg)  (2.8)% 9.8% 14.8% 7.7% 5.9% Less: Net Unrealized (Gains) Losses on Fixed Maturities  (0.4)% 1.5% 1.5% 0.6% 0.7% Rolling 12 Month Return on Average Shareholders’ Equity Excluding Net Unrealized (Gains)  Losses on Fixed Maturities (5 Point Avg)  (3.2)% 11.3% 16.3% 8.3% 6.6% Excluding: Net Unrealized (Gains) Losses on Fixed Maturities (5 Point Avg)  (1.7)% 5.0% 8.4% 3.1% 1.4% Excluding: Net Unrealized (Gains) Losses on Fixed Maturities and Goodwill (5 Point Avg)  (4.9)% 16.3% 24.7% 11.4% 8.0% For the Periods Ended

 
Earnings Call Presentation – 4Q 2022 Non‐GAAP Financial Measures 24 Diluted Adjusted Consolidated Net Operating Income (Loss) Per Unrestricted Share is a non‐GAAP financial measure computed by dividing Adjusted  Consolidated Net Operating Income (Loss) attributed to unrestricted shares by the weighted‐average unrestricted shares and equivalent shares  outstanding. The most directly comparable GAAP financial measure is Diluted Net Income (Loss) Per Unrestricted Share. Kemper believes that Diluted Adjusted Consolidated Net Operating Income (Loss) Per Unrestricted Share provides investors with a valuable measure  of its ongoing performance because it reveals underlying operational performance trends that otherwise might be less apparent if the items were  not excluded. Income from change in fair value of equity and convertible securities, net realized investment gains (losses), 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. Per Unrestricted Share 4Q22 3Q22 2Q22 1Q22 4Q21 Net Income (Loss) ‐ Diluted (0.87)$       (1.19)$       (1.17)$       (1.49)$       (1.66)$       Net (Income) Loss From: Change in Fair Value of Equity & Convertible Securities ‐             0.14           0.50           0.35           (0.27)          Net Realized Investment Gains (Losses) (0.05)          0.15           (0.13)          (0.02)          (0.27)          Impairment Losses 0.05           0.10           0.06           0.11           0.04           Acquisition Related Transaction, Integration and Other Costs 0.46           0.32           0.12           0.06           0.11           Debt Extinguishment, pension and other charges ‐             ‐             ‐             0.05           ‐             Adj. Consolidated Net Operating Income (Loss) ‐ Diluted (0.41)$       (0.48)$       (0.62)$       (0.94)$       (2.05)$       For the Three Months Ended

 
Earnings Call Presentation – 4Q 2022 Non‐GAAP Financial Measures 25 Underlying Combined Ratio – Continued  4Q22 3Q22 2Q22 1Q22 4Q21 Specialty P&C Insurance Combined Ratio as Reported 108.8% 107.6% 108.0% 108.6% 118.9% Current Year Catastrophe Loss and LAE Ratio 0.0%  (1.5)%  (0.6)%  (0.2)%  (0.2)% Prior Years Non‐Catastrophe Losses and LAE Ratio  (1.0)% 0.7% 1.4% 0.4% 0.7% Prior Years Catastrophe Losses and LAE Ratio 0.0% 0.0% 0.0%  (0.1)% 0.0% Underlying Combined Ratio 107.8% 106.8% 108.8% 108.7% 119.4% Preferred P&C Insurance Combined Ratio as Reported 111.2% 110.1% 121.7% 111.6% 115.5% Current Year Catastrophe Loss and LAE Ratio  (6.3)%  (7.2)%  (15.7)%  (7.3)%  (4.6)% Prior Years Non‐Catastrophe Losses and LAE Ratio 0.6% 0.2%  (1.2)%  (1.3)%  (5.2)% Prior Years Catastrophe Losses and LAE Ratio 1.1% 0.5% 0.5% 2.1% 1.2% Underlying Combined Ratio 106.6% 103.6% 105.3% 105.1% 106.9% Preferred Auto Combined Ratio as Reported 118.9% 116.9% 114.7% 118.5% 135.5% Current Year Catastrophe Loss and LAE Ratio  (0.7)%  (1.2)%  (1.7)%  (0.5)%  (1.3)% Prior Years Non‐Catastrophe Losses and LAE Ratio  (0.1)%  (0.2)% 0.0%  (1.6)%  (7.2)% Prior Years Catastrophe Losses and LAE Ratio 0.2%  (0.1)% 0.0%  (0.1)% 0.1% Underlying Combined Ratio 118.3% 115.4% 113.0% 116.3% 127.1% Preferred Home & Other Combined Ratio as Reported 99.8% 100.0% 133.3% 100.5% 82.5% Current Year Catastrophe Loss and LAE Ratio  (14.5)%  (16.2)%  (39.2)%  (18.3)%  (10.1)% Prior Years Non‐Catastrophe Losses and LAE Ratio 1.6% 0.8%  (3.2)%  (1.0)%  (1.8)% Prior Years Catastrophe Losses and LAE Ratio 2.3% 1.3% 1.4% 5.5% 3.1% Underlying Combined Ratio 89.2% 85.9% 92.3% 86.7% 73.7% For the Three Months Ended

 
Earnings Call Presentation – 4Q 2022 Non‐GAAP Financial Measures 26 As Adjusted for Acquisition – Continued Consolidated Financial Highlights ($ in millions, except per share data) 31‐Dec‐22 30‐Sep‐22 30‐Jun‐22 31‐Mar‐22 31‐Dec‐21 Earned Premiums Kemper ‐ GAAP As Reported 1,267.0$      1,307.0$      1,353.7$      1,338.6$    1,359.1$      AAC ‐ Prior to Acquisition ‐                 ‐                 ‐                 ‐                ‐                  As Adjusted 1  1,267.0$      1,307.0$      1,353.7$      1,338.6$    1,359.1$      Net Income (Loss) Kemper ‐ GAAP As Reported (55.5)$          (76.2)$          (74.7)$          (94.8)$        (105.8)$        AAC ‐ Prior to Acquisition ‐                 ‐                 ‐                 ‐                ‐                  Less: Impact of Purchase Accounting (3.0)              (3.5)              (3.4)              (3.5)            (4.5)               As Adjusted 1  (52.5)$          (72.7)$          (71.3)$          (91.3)$        (101.3)$        As Adjusted  1 ‐ Per Diluted Share (0.82)$         (1.14)$         (1.12)$         (1.43)$       (1.59)$         Adjusted Consolidated Net Operating Income (Loss) Kemper ‐ GAAP As Reported (26.6)$          (30.5)$          (39.7)$          (60.1)$        (130.8)$        AAC ‐ Prior to Acquisition ‐                 ‐                 ‐                 ‐                ‐                  Less: Impact of Purchase Accounting (3.0)              (3.5)              (3.4)              (3.5)            (4.5)               As Adjusted 1  (23.6)$          (27.0)$          (36.3)$          (56.6)$        (126.3)$        As Adjusted  1 ‐ Per Diluted Share (0.37)$         (0.42)$         (0.57)$         (0.89)$       (1.98)$         Three Months Ended 1 As Adjusted is a non‐GAAP measure, which is comprised by excluding impact of purchase accounting in 2021 and 2022  and including historical results of Kemper and AAC in periods prior to acquisition date of April 1, 2021

 
Earnings Call Presentation – 4Q 2022 Non‐GAAP Financial Measures 27 As Adjusted for Acquisition – Continued 1 As Adjusted is a non‐GAAP measure, which is comprised by excluding impact of purchase accounting in 2021 and 2022  and including historical results of Kemper and AAC in periods prior to acquisition date of April 1, 2021 Specialty P&C Insurance Segment ($ in millions) 31‐Dec‐22 30‐Sep‐22 30‐Jun‐22 31‐Mar‐22 31‐Dec‐21 Earned Premiums Kemper Specialty P&C ‐ GAAP As Reported 981.6$           999.5$           1,043.7$       1,021.6$    1,032.3$    AAC ‐ Prior to Acquisition ‐                   ‐                   ‐                   ‐                ‐                As Adjusted 1  981.6$           999.5$           1,043.7$       1,021.6$    1,032.3$    Current Year Non‐CAT Losses and LAE Kemper Specialty P&C ‐ GAAP As Reported 859.3$           868.0$           930.2$          911.7$       1,028.5$    AAC ‐ Prior to Acquisition ‐                   ‐                   ‐                   ‐                ‐                Less: Impact of Purchase Accounting Amortization of Fair Value Adjustment to Unpaid Loss and LAE ‐                   0.1                 0.1                 0.3              0.2              As Adjusted 1  859.3$           867.9$           930.1$          911.4$       1,028.3$    Insurance Expenses Kemper Specialty P&C ‐ GAAP As Reported 198.4$           198.8$           205.4$          199.3$       204.4$       AAC ‐ Prior to Acquisition ‐                   ‐                   ‐                   ‐                ‐                Less: Impact of Purchase Accounting 3.8                 4.3                 4.2                 4.7              5.9              As Adjusted 1  194.6$           194.5$           201.2$          194.6$       198.5$       As Adjusted 1 Underlying Combined Ratio  As Adjusted 1 Underlying Loss & LAE Ratio 87.5% 86.8% 89.1% 89.2% 99.6% As Adjusted 1 Expense Ratio 19.9% 19.5% 19.3% 19.1% 19.2% As Adjusted 1 Underlying Combined Ratio 107.4% 106.3% 108.4% 108.3% 118.8% Three Months Ended

 
Earnings Call Presentation – 4Q 2022 Non‐GAAP Financial Measures 28 As Adjusted for Acquisition – Continued  1 As Adjusted is a non‐GAAP measure, which is comprised by excluding impact of purchase accounting in 2021 and 2022  and including historical results of Kemper and AAC in periods prior to acquisition date of April 1, 2021 Specialty Personal Automobile Insurance ($ in millions) 31‐Dec‐22 30‐Sep‐22 30‐Jun‐22 31‐Mar‐22 31‐Dec‐21 Earned Premiums Kemper Specialty P&C ‐ GAAP As Reported 830.4$           858.8$           905.8$         901.7$       918.1$         AAC ‐ Prior to Acquisition ‐                   ‐                   ‐                  ‐                ‐                  As Adjusted 1  830.4$           858.8$           905.8$         901.7$       918.1$         Current Year Non‐CAT Losses and LAE Kemper Specialty P&C ‐ GAAP As Reported 739.8$           757.8$           828.6$         827.7$       938.5$         AAC ‐ Prior to Acquisition ‐                   ‐                   ‐                  ‐                ‐                  Less: Impact of Purchase Accounting Amortization of Fair Value Adjustment to Unpaid Loss and LAE ‐                   0.1                 ‐                  0.3              0.2                As Adjusted 1  739.8$           757.7$           828.6$         827.4$       938.3$         Insurance Expenses Kemper Specialty P&C ‐ GAAP As Reported 172.2$           172.9$           179.7$         177.3$       184.3$         AAC ‐ Prior to Acquisition ‐                   ‐                   ‐                  ‐                ‐                  Less: Impact of Purchase Accounting 3.4                 3.8                 3.8                4.3              5.5                As Adjusted 1  168.8$           169.1$           175.9$         173.0$       178.8$         As Adjusted 1 Underlying Combined Ratio  As Adjusted 1 Underlying Loss & LAE Ratio 89.1% 88.2% 91.5% 91.8% 102.2% As Adjusted 1 Expense Ratio 20.3% 19.7% 19.4% 19.2% 19.5% As Adjusted 1 Underlying Combined Ratio 109.4% 107.9% 110.9% 110.9% 121.7% Three Months Ended