8-K

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 10, 2020 

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

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

Emerging Growth Company ☐

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

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

the Exchange Act.    ¨

Section 2. – Financial Information

Item 2.02. Results of Operations and Financial Condition.

On February 10, 2020, Kemper Corporation ("Kemper" or the "Registrant") issued a press release announcing its financial results for the fourth quarter of 2019 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 10, 2020.

99.2 Fourth Quarter 2019 Investor Supplement of Kemper Corporation.

99.3 Fourth Quarter 2019 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 10, 2020	/S/    JAMES J. MCKINNEY
		James J. McKinney
		Executive Vice President and Chief Financial Officer (principal financial officer)

EX-99.1

Exhibit 99.1

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

Kemper Reports Strong Fourth Quarter and Full Year 2019 Operating Results

CHICAGO, February 10, 2020 — Kemper Corporation (NYSE: KMPR) reported net income of $124.7 million, or $1.85 per diluted share, for the fourth quarter of 2019, compared to $6.5 million, or $0.10 per diluted share, for the fourth quarter of 2018. In the fourth quarter of 2019, net income included a $30.9 million after-tax gain, or $0.46 per diluted share, attributable to the change in fair value of equity and convertible securities. As adjusted for the acquisition of Infinity Property and Casualty Corporation (“as adjusted”)¹, net income was $129.1 million, or $1.92 per diluted share, for the fourth quarter of 2019, compared to $27.0 million, or $0.41 per diluted share, for the fourth quarter of 2018.

Adjusted consolidated net operating income¹ was $97.9 million, or $1.45 per diluted share, for the fourth quarter of 2019, compared to $59.9 million, or $0.91 per diluted share, for the fourth quarter of 2018. These results increased primarily from the continued profitable growth in the Specialty Property & Casualty Insurance segment and Life & Health earnings.

Highlights of the quarter include:

◦ Consolidated earned premiums increased by 8 percent, or $82.2 million in the quarter

◦ Specialty Property & Casualty Insurance segment’s earned premiums increased by 11 percent, or $81.9 million in the quarter

“This quarter was highlighted by continued strength of earnings, strong underlying profitability, and industry-leading growth in our Specialty Auto segment,” said Joseph P. Lacher, Jr., president and CEO. “In addition, our recent dividend increase and ratings agency recognitions are further evidence of the strength and performance of our business model and balance sheet.”

	Three Months Ended						Year Ended
(Dollars in Millions, Except Per Share Amounts) (Unaudited)	Dec 31, 2019			Dec 31, 2018			Dec 31, 2019			Dec 31, 2018
Net Income	$	124.7		$	6.5		$	531.1		$	190.1
Income from Continuing Operations	$	124.7		$	5.0		$	531.1		$	188.4
Adjusted Consolidated Net Operating Income1	$	97.9		$	59.9		$	418.3		$	258.4
Impact of Catastrophe Losses and Related Loss Adjustment Expense (LAE) on Net Income	$	(12.8	)	$	(19.5	)	$	(61.0	)	$	(75.8	)
Diluted Net Income Per Share From:
Net Income	$	1.85		$	0.10		$	7.96		$	3.22
Income from Continuing Operations	$	1.85		$	0.08		$	7.96		$	3.19
Adjusted Consolidated Net Operating Income1	$	1.45		$	0.91		$	6.27		$	4.37
Impact of Catastrophe Losses and Related LAE on Net Income Per Share	$	(0.19	)	$	(0.30	)	$	(0.91	)	$	(1.30	)

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.

Capital

Total Shareholders’ Equity at the end of the quarter was $3,972.3 million, an increase of $922.2 million, or 30 percent, since year-end 2018 primarily driven by net income, unrealized gains on the fixed maturity portfolio and proceeds from the issuance of stock partially offset by dividends paid to shareholders. Kemper ended the quarter with cash and investments at the holding company of $206.8 million, and the $400 million revolving credit agreement was undrawn.

During the fourth quarter of 2019, Kemper paid dividends of $18.7 million.

Kemper ended the quarter with a book value per share of $59.59, an increase of 27 percent from $47.10 at the end of 2018. Book value per share excluding net unrealized gains on fixed maturities¹ was $53.08, up 17 percent from $45.40 at the end of 2018, primarily driven by net income partially offset by dividends paid to shareholders.

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

Revenues

Total revenues for the fourth quarter of 2019increased$189.0 million, or 17 percent, to $1,283.7 million, compared to the fourth quarter of 2018, driven by a $115.6 million increase attributable to the change in fair value of equity and convertible securities and $81.9 million of higher Specialty P&C earned premiums. Specialty P&C earned premiums increased primarily from higher policies in force. Net investment income increased$2.6 million to $93.9 million in the fourth quarter of 2019. Net realized investment gains were $2.8 million in the fourth quarter of 2019, compared to $16.4 million last year. Other income increased from $2.0 million to $3.7 million in the fourth quarter of 2019 primarily due to increased income from investments in corporate 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 Ended						Year Ended
(Dollars in Millions) (Unaudited)	Dec 31, 2019			Dec 31, 2018			Dec 31, 2019			Dec 31, 2018
Segment Net Operating Income:
Specialty Property & Casualty Insurance	62.3			48.5			283.1			115.8
Preferred Property & Casualty Insurance	12.8			6.0			41.9			25.7
Life & Health Insurance	28.9			13.6			98.7			91.5
Total Segment Net Operating Income	104.0			68.1			423.7			233.0
Corporate and Other Net Operating Income (Loss)	(6.1		)	(8.2		)	(5.4		)	25.4
Adjusted Consolidated Net Operating Income1	97.9			59.9			418.3			258.4
Net Income (Loss) From:
Change in Fair Value of Equity and Convertible Securities	30.9			(60.4		)	109.7			(50.8		)
Net Realized Gains on Sales of Investments	2.2			13.0			33.1			20.9
Net Impairment Losses Recognized in Earnings	(1.3		)	(1.8		)	(10.9		)	(3.6		)
Acquisition Related Transaction, Integration and Other Costs	(5.0		)	(5.7		)	(14.5		)	(36.5		)
Loss from Early Extinguishment of Debt	—			—			(4.6		)	—
Income from Continuing Operations	$	124.7		$	5.0		$	531.1		$	188.4

The Specialty Property & Casualty Insurance segment reported net operating income of $62.3 million for the fourth quarter of 2019, compared to $48.5 million in 2018. Results improved primarily from strong organic Personal Automobile growth. The segment’s underlying combined ratio¹ was 93.8 percent compared to 94.5 percent in the fourth quarter of 2018.

The Preferred Property & Casualty Insurance segment reported net operating income of $12.8 million for the fourth quarter of 2019, compared to $6.0 million in 2018. Improved results were primarily due to lower incurred catastrophe losses and LAE and favorable development on prior year losses and LAE, partially offset by higher underlying losses and LAE and insurance expenses as a percentage of earned premiums. The Preferred Property & Casualty Insurance segment’s underlying combined ratio¹increased2.0 percent points to 96.6 percent in the fourth quarter of 2019, driven by a deterioration in both the expense and underlying loss ratios¹.

The Life & Health Insurance segment reported net operating income of $28.9 million for the fourth quarter of 2019, compared to $13.6 million in 2018. Results increased primarily from an increase in earned premiums as well as decreases in policyholders’ benefits and insurance expenses. The decrease in policyholders’ benefits and incurred losses reflected a release in accrued reserves.

3

Unaudited condensed consolidated statements of income for the three months and year endedDecember 31, 2019 and 2018 are presented below.

	Three Months Ended						Year Ended
(Dollars in Millions, Except Per Share Amounts)	Dec 31, 2019			Dec 31, 2018			Dec 31, 2019			Dec 31, 2018
Revenues:
Earned Premiums	$	1,145.8		$	1,063.6		$	4,472.4		$	3,384.4
Net Investment Income	93.9			91.3			364.3			340.9
Other Income	3.7			2.0			35.5			42.2
Income from Change in Fair Value of Equity and Convertible Securities	39.2			(76.4		)	138.9			(64.3		)
Net Realized Gains on Sales of Investments	2.8			16.4			41.9			26.4
Other-than-temporary Impairment Losses:
Total Other-than-temporary Impairment Losses	(1.7		)	(2.2		)	(13.7		)	(4.5		)
Portion of Losses Recognized in Other Comprehensive Income	—			—			(0.1		)	—
Net Impairment Losses Recognized in Earnings	(1.7		)	(2.2		)	(13.8		)	(4.5		)
Total Revenues	1,283.7			1,094.7			5,039.2			3,725.1
Expenses:
Policyholders’ Benefits and Incurred Losses and Loss Adjustment Expenses	814.9			772.8			3,188.3			2,466.5
Insurance Expenses	265.4			273.2			1,019.7			900.5
Loss from Early Extinguishment of Debt	—			—			5.8			—
Interest and Other Expenses	46.5			42.6			163.8			159.0
Total Expenses	1,126.8			1,088.6			4,377.6			3,526.0
Income from Continuing Operations before Income Taxes	156.9			6.1			661.6			199.1
Income Tax Expense	(32.2		)	(1.1		)	(130.5		)	(10.7		)
Income from Continuing Operations	124.7			5.0			531.1			188.4
Income from Discontinued Operations	—			1.5			—			1.7
Net Income	$	124.7		$	6.5		$	531.1		$	190.1
Income from Continuing Operations Per Unrestricted Share:
Basic	$	1.87		$	0.08		$	8.04		$	3.22
Diluted	$	1.85		$	0.08		$	7.96		$	3.19
Net Income Per Unrestricted Share:
Basic	$	1.87		$	0.10		$	8.04		$	3.25
Diluted	$	1.85		$	0.10		$	7.96		$	3.22
Weighted-average Outstanding (Shares in Thousands):
Unrestricted Shares - Basic	66,649.7			64,748.2			65,880.9			58,149.4
Unrestricted Shares and Equivalent Shares - Diluted	67,160.5			65,448.8			66,548.1			58,751.9
Dividends Paid to Shareholders Per Share	$	0.28		$	0.24		$	1.03		$	0.96

4

Unaudited business segment revenues for the three months and year endedDecember 31, 2019 and 2018 are presented below.

	Three Months Ended						Year Ended
(Dollars in Millions)	Dec 31, 2019			Dec 31, 2018			Dec 31, 2019			Dec 31, 2018
REVENUES:
Specialty Property & Casualty Insurance:
Earned Premiums:
Specialty Automobile	733.1			660.5			2,825.6			1,889.5
Commercial Automobile	66.6			57.3			252.8			137.9
Total Earned Premiums	799.7			717.8			3,078.4			2,027.4
Net Investment Income	28.3			22.6			107.5			63.4
Other Income	0.8			0.8			7.0			2.4
Total Specialty Property & Casualty Insurance Revenues	828.8			741.2			3,192.9			2,093.2
Preferred Property & Casualty Insurance:
Earned Premiums:
Preferred Automobile	$	117.2		$	115.2		$	470.2		$	440.2
Homeowners	58.7			63.6			241.3			250.1
Other Personal	9.3			10.0			38.8			40.4
Total Earned Premiums	185.2			188.8			750.3			730.7
Net Investment Income	11.5			14.0			44.1			61.8
Total Preferred Property & Casualty Insurance Revenues	196.7			202.8			794.4			792.5
Life & Health Insurance:
Earned Premiums:
Life	95.6			94.1			384.6			378.4
Accident & Health	48.5			45.5			190.9			177.5
Property	16.8			17.4			68.2			70.4
Total Earned Premiums	160.9			157.0			643.7			626.3
Net Investment Income	52.0			51.7			206.4			210.9
Other Income	2.9			1.1			8.5			4.0
Total Life & Health Insurance Revenues	215.8			209.8			858.6			841.2
Total Segment Revenues	1,241.3			1,153.8			4,845.9			3,726.9
Income (Loss) from Change in Fair Value of Equity and Convertible Securities	39.2			(76.4		)	138.9			(64.3		)
Net Realized Gains on Sales of Investments	2.8			16.4			41.9			26.4
Net Impairment Losses Recognized in Earnings	(1.7		)	(2.2		)	(13.8		)	(4.5		)
Other	2.1			3.1			26.3			40.6
Total Revenues	$	1,283.7		$	1,094.7		$	5,039.2		$	3,725.1

5

KEMPER CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (Dollars in Millions) (Unaudited)
	Dec 31, 2019		Dec 31, 2018
Assets:
Investments:
Fixed Maturities at Fair Value	$	6,922.1	$	6,424.2
Equity Securities at Fair Value	907.3		684.4
Equity Securities at Modified Cost	41.9		41.5
Equity Method Limited Liability Investments at Cost Plus Cumulative Undistributed Earnings	220.4		187.0
Convertible Securities at Fair Value	37.3		31.5
Short-term Investments at Cost which Approximates Fair Value	470.9		286.1
Other Investments	444.5		414.8
Total Investments	9,044.4		8,069.5
Cash	136.8		75.1
Receivables from Policyholders	1,117.1		1,007.1
Other Receivables	219.7		245.4
Deferred Policy Acquisition Costs	537.7		470.0
Goodwill	1,114.0		1,112.4
Current Income Tax Assets	44.7		38.9
Other Assets	774.7		526.5
Total Assets	$	12,989.1	$	11,544.9
Liabilities and Shareholders’ Equity:
Insurance Reserves:
Life & Health	$	3,502.0	$	3,491.9
Property & Casualty	1,969.8		1,874.9
Total Insurance Reserves	5,471.8		5,366.8
Unearned Premiums	1,545.5		1,424.3
Policyholder Contract Liabilities	309.8		76.8
Deferred Income Tax Liabilities	178.2		26.2
Liabilities for Unrecognized Tax Benefits	—		4.4
Accrued Expenses and Other Liabilities	733.1		687.3
Debt at Amortized Cost	778.4		909.0
Total Liabilities	9,016.8		8,494.8
Shareholders’ Equity:
Common Stock	6.7		6.5
Paid-in Capital	1,819.2		1,666.3
Retained Earnings	1,810.3		1,355.5
Accumulated Other Comprehensive Income	336.1		21.8
Total Shareholders’ Equity	3,972.3		3,050.1
Total Liabilities and Shareholders’ Equity	$	12,989.1	$	11,544.9

6

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

	Three Months Ended						Year Ended
(Dollars in Millions)	Dec 31, 2019			Dec 31, 2018			Dec 31, 2019			Dec 31, 2018
Results of Operations
Net Premiums Written	$	782.5		$	674.7		$	3,211.3		$	2,067.4
Earned Premiums	$	799.7		$	717.8		$	3,078.4		$	2,027.4
Net Investment Income	28.3			22.6			107.5			63.4
Other Income	0.8			0.8			7.0			2.4
Total Revenues	828.8			741.2			3,192.9			2,093.2
Incurred Losses and LAE related to:
Current Year:
Non-catastrophe Losses and LAE	599.5			530.3			2,302.4			1,517.4
Catastrophe Losses and LAE	3.8			1.0			11.1			4.7
Prior Years:
Non-catastrophe Losses and LAE	(4.1		)	—			(35.1		)	2.0
Catastrophe Losses and LAE	0.2			—			0.5			(0.3		)
Total Incurred Losses and LAE	599.4			531.3			2,278.9			1,523.8
Insurance Expenses	150.7			148.0			555.6			421.7
Other Expenses	0.2			0.4			2.5			2.1
Operating Income	78.5			61.5			355.9			145.6
Income Tax Benefit	(16.2		)	(13.0		)	(72.8		)	(29.8		)
Segment Net Operating Income	$	62.3		$	48.5		$	283.1		$	115.8
Ratios Based On Earned Premiums
Current Year Non-catastrophe Losses and LAE Ratio	75.0		%	73.9		%	74.7		%	74.9		%
Current Year Catastrophe Losses and LAE Ratio	0.5			0.1			0.4			0.2
Prior Years Non-catastrophe Losses and LAE Ratio	(0.5		)	—			(1.1		)	0.1
Prior Years Catastrophe Losses and LAE Ratio	—			—			—			—
Total Incurred Loss and LAE Ratio	75.0			74.0			74.0			75.2
Insurance Expense Ratio	18.8			20.6			18.0			20.8
Combined Ratio	93.8		%	94.6		%	92.0		%	96.0		%
Underlying Combined Ratio1
Current Year Non-catastrophe Losses and LAE Ratio	75.0		%	73.9		%	74.7		%	74.9		%
Insurance Expense Ratio	18.8			20.6			18.0			20.8
Underlying Combined Ratio1	93.8		%	94.5		%	92.7		%	95.7		%
Non-GAAP Measure Reconciliation
Combined Ratio	93.8		%	94.6		%	92.0		%	96.0		%
Current Year Catastrophe Losses and LAE Ratio	0.5			0.1			0.4			0.2
Prior Years Non-catastrophe Losses and LAE Ratio	(0.5		)	—			(1.1		)	0.1
Prior Years Catastrophe Losses and LAE Ratio	—			—			—			—
Underlying Combined Ratio1	93.8		%	94.5		%	92.7		%	95.7		%

7

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

	Three Months Ended						Year Ended
(Dollars in Millions)	Dec 31, 2019			Dec 31, 2018			Dec 31, 2019			Dec 31, 2018
Results of Operations
Net Premiums Written	$	172.6		$	184.7		$	739.3		$	748.8
Earned Premiums	$	185.2		$	188.8		$	750.3		$	730.7
Net Investment Income	11.5			14.0			44.1			61.8
Total Revenues	196.7			202.8			794.4			792.5
Incurred Losses and LAE related to:
Current Year:
Non-catastrophe Losses and LAE	120.2			120.8			481.8			459.4
Catastrophe Losses and LAE	11.9			21.4			63.0			87.3
Prior Years:
Non-catastrophe Losses and LAE	(7.1		)	(3.0		)	(17.6		)	(0.1		)
Catastrophe Losses and LAE	(3.1		)	(0.8		)	(18.4		)	(8.2		)
Total Incurred Losses and LAE	121.9			138.4			508.8			538.4
Insurance Expenses	58.7			57.8			233.3			225.5
Operating Income	16.1			6.6			52.3			28.6
Income Tax Expense	(3.3		)	(0.6		)	(10.4		)	(2.9		)
Segment Net Operating Income	$	12.8		$	6.0		$	41.9		$	25.7
Ratios Based On Earned Premiums
Current Year Non-catastrophe Losses and LAE Ratio	64.9		%	64.0		%	64.2		%	62.9		%
Current Year Catastrophe Losses and LAE Ratio	6.4			11.3			8.4			11.9
Prior Years Non-catastrophe Losses and LAE Ratio	(3.8		)	(1.6		)	(2.3		)	—
Prior Years Catastrophe Losses and LAE Ratio	(1.7		)	(0.4		)	(2.5		)	(1.1		)
Total Incurred Loss and LAE Ratio	65.8			73.3			67.8			73.7
Insurance Expense Ratio	31.7			30.6			31.1			30.9
Combined Ratio	97.5		%	103.9		%	98.9		%	104.6		%
Underlying Combined Ratio1
Current Year Non-catastrophe Losses and LAE Ratio	64.9		%	64.0		%	64.2		%	62.9		%
Insurance Expense Ratio	31.7			30.6			31.1			30.9
Underlying Combined Ratio1	96.6		%	94.6		%	95.3		%	93.8		%
Non-GAAP Measure Reconciliation
Combined Ratio	97.5		%	103.9		%	98.9		%	104.6		%
Current Year Catastrophe Losses and LAE Ratio	6.4			11.3			8.4			11.9
Prior Years Non-catastrophe Losses and LAE Ratio	(3.8		)	(1.6		)	(2.3		)	—
Prior Years Catastrophe Losses and LAE Ratio	(1.7		)	(0.4		)	(2.5		)	(1.1		)
Underlying Combined Ratio1	96.6		%	94.6		%	95.3		%	93.8		%

8

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

	Three Months Ended						Year Ended
(Dollars in Millions)	Dec 31, 2019			Dec 31, 2018			Dec 31, 2019			Dec 31, 2018
Results of Operations
Earned Premiums	$	160.9		$	157.0		$	643.7		$	626.3
Net Investment Income	52.0			51.7			206.4			210.9
Other Income	2.9			1.1			8.5			4.0
Total Revenues	215.8			209.8			858.6			841.2
Policyholders’ Benefits and Incurred Losses and LAE	95.0			103.1			402.7			404.2
Insurance Expenses	85.3			88.4			334.0			321.1
Operating Profit	35.5			18.3			121.9			115.9
Income Tax Expense	(6.6		)	(4.7		)	(23.2		)	(24.4		)
Segment Net Operating Income	$	28.9		$	13.6		$	98.7		$	91.5

Use of Non-GAAP Financial Measures

Adjusted Consolidated Net Operating Income¹ 

Adjusted Consolidated Net Operating Income¹ is an after-tax, non-GAAP financial measure computed by excluding from Income from Continuing Operations the after-tax impact of 1) loss from change in fair value of equity and convertible securities, 2) net realized gains on sales of investments, 3) net impairment losses recognized in earnings related to investments, 4) acquisition related transaction, integration and other costs, 5) loss from early extinguishment of debt and 6) significant non-recurring or infrequent items that may not be indicative of ongoing operations. Significant non-recurring items are excluded when (a) the nature of the charge or gain is such that it is reasonably unlikely to recur within two years and (b) there has been no similar charge or gain within the prior two years. The most directly comparable GAAP financial measure is Income from Continuing Operations.

Kemper believes that Adjusted Consolidated Net Operating Income¹ provides investors with a valuable measure of its ongoing performance because it reveals underlying operational performance trends that otherwise might be less apparent if the items were not excluded. Loss from Change in Fair Value of Equity and Convertible Securities, Net Realized Gains on Sales of Investments and Net Impairment Losses Recognized in Earnings related to investments included in the Company’s results may vary significantly between periods and are generally driven by business decisions and external economic developments such as capital market conditions that impact the values of the Company’s investments, the timing of which is unrelated to the insurance underwriting process. Loss from Early Extinguishment of Debt is driven by the Company’s financing and refinancing decisions and capital needs, as well as external economic developments such as debt market conditions, the timing of which is unrelated to the insurance underwriting process. Acquisition Related Transaction, Integration and Other Costs may vary significantly between periods and are generally driven by the timing of acquisitions and business decisions which are unrelated to the insurance underwriting process. Significant non-recurring items are excluded because, by their nature, they are not indicative of the Company’s business or economic trends.

9

A reconciliation of Income from Continuing Operations to Adjusted Consolidated Net Operating Income¹ for the three months and year endedDecember 31, 2019 and 2018 is presented below.

	Three Months Ended						Year Ended
(Dollars in Millions) (Unaudited)	Dec 31, 2019			Dec 31, 2018			Dec 31, 2019			Dec 31, 2018
Income from Continuing Operations	$	124.7		$	5.0		$	531.1		$	188.4
Less Net Income (Loss) From:
Change in Fair Value of Equity and Convertible Securities	30.9			(60.4		)	109.7			(50.8		)
Net Realized Gains on Sales of Investments	2.2			13.0			33.1			20.9
Net Impairment Losses Recognized in Earnings	(1.3		)	(1.8		)	(10.9		)	(3.6		)
Acquisition Related Transaction, Integration and Other Costs	(5.0		)	(5.7		)	(14.5		)	(36.5		)
Loss from Early Extinguishment of Debt	—			—			(4.6		)	—
Adjusted Consolidated Net Operating Income1	$	97.9		$	59.9		$	418.3		$	258.4

Diluted Adjusted Consolidated Net Operating Income Per Unrestricted Share¹ 

Diluted Adjusted Consolidated Net Operating Income Per Unrestricted Share¹ is a non-GAAP financial measure computed by dividing Adjusted Consolidated Net Operating Income¹ attributed to unrestricted shares by the weighted-average unrestricted shares and equivalent shares outstanding. The most directly comparable GAAP financial measure is Diluted Income from Continuing Operations Per Unrestricted Share.

A reconciliation of Diluted Income from Continuing Operations Per Unrestricted Share to Diluted Adjusted Consolidated Net Operating Income Per Unrestricted Share¹ for the three months and year endedDecember 31, 2019 and 2018 is presented below.

	Three Months Ended						Year Ended
(Unaudited)	Dec 31, 2019			Dec 31, 2018			Dec 31, 2019			Dec 31, 2018
Diluted Income from Continuing Operations Per Unrestricted Share	$	1.85		$	0.08		$	7.96		$	3.19
Less Net Income (Loss) Per Unrestricted Share From:
Change in Fair Value of Equity and Convertible Securities	0.46			(0.92		)	1.64			(0.86		)
Net Realized Gains on Sales of Investments	0.03			0.20			0.50			0.35
Net Impairment Losses Recognized in Earnings	(0.02		)	(0.02		)	(0.16		)	(0.06		)
Acquisition Related Transaction, Integration and Other Costs	(0.07		)	(0.09		)	(0.22		)	(0.61		)
Loss from Early Extinguishment of Debt	—			—			(0.07		)	—
Diluted Adjusted Consolidated Net Operating Income Per Unrestricted Share1	$	1.45		$	0.91		$	6.27		$	4.37

Book Value Per Share Excluding Net Unrealized Gains on Fixed Maturities¹ 

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

10

A reconciliation of the numerator used in the computation of Book Value Per Share Excluding Net Unrealized Gains on Fixed Maturities¹ and Book Value Per Share at December 31, 2019 and December 31, 2018 is presented below.

(Dollars in Millions) (Unaudited)	Dec 31, 2019		Dec 31, 2018
Shareholders’ Equity	$	3,972.3	$	3,050.1
Net Unrealized Gains on Fixed Maturities	434.0		110.4
Shareholders’ Equity Excluding Net Unrealized Gains on Fixed Maturities1	$	3,538.3	$	2,939.7

Underlying Combined Ratio¹ 

Underlying Combined Ratio¹ is a non-GAAP financial measure that is computed by adding the current year non-catastrophe losses and LAE ratio with the insurance expense ratio. The most directly comparable GAAP financial measure is the combined ratio, which is computed by adding total incurred losses and LAE, including the impact of catastrophe losses and loss and LAE reserve development from prior years, with the insurance expense ratio. Kemper believes the underlying combined ratio is useful to investors and is used by management to reveal the trends in Kemper’s property and casualty insurance businesses that may be obscured by catastrophe losses and prior-year reserve development. These catastrophe losses may cause loss trends to vary significantly between periods as a result of their incidence of occurrence and magnitude, and can have a significant impact on incurred losses and LAE and the combined ratio. Prior-year reserve development is caused by unexpected loss development on historical reserves. Because reserve development relates to the re-estimation of losses from earlier periods, it has no bearing on the performance of the company’s insurance products in the current period. Kemper believes it is useful for investors to evaluate these components separately and in the aggregate when reviewing its underwriting performance. The underlying combined ratio¹ should not be considered a substitute for the combined ratio and does not reflect the overall underwriting profitability of our business.

As Adjusted for Acquisition¹ 

As Adjusted for Acquisition¹ amounts are non-GAAP financial measures. For three months endedDecember 31, 2019 and December 31, 2018, as adjusted amounts are computed by subtracting the impact of purchase accounting adjustments from the comparable consolidated GAAP financial measure reported by Kemper. The Company believes computing and presenting results on an adjusted basis are useful to investors and are used by management to provide meaningful and comparable year-over-year comparisons.

A reconciliation of the As Adjusted for Acquisition¹ non-GAAP financial measures used in this press release to the comparable GAAP financial measure for the three months endedDecember 31, 2019 is presented below.

(Dollars in Millions, Except Per Share Amounts) (Unaudited)	Kemper Consolidated GAAP Financial Measure		Less Impact of Purchase Accounting Adjustments			As Adjusted for Acquisition1
Net Income	$	124.7	$	(4.4	)	$	129.1
Net Income Per Share - Diluted	$	1.85	$	(0.07	)	$	1.92
Specialty Property & Casualty Insurance Segment:
Segment Net Operating Income	$	62.3	$	(4.7	)	$	67.0

11

A reconciliation of the As Adjusted for Acquisition¹ non-GAAP financial measures used in this press release to the comparable GAAP financial measure for the three months endedDecember 31, 2018 is presented below.

(Dollars in Millions) (Unaudited)	Kemper Consolidated GAAP Financial Measure		Less Impact of Purchase Accounting Adjustments			As Adjusted for Acquisition1
Net Income	$	6.5	$	(20.5	)	$	27.0
Net Income Per Share - Diluted	$	0.10	$	(0.31	)	$	0.41
Specialty Property & Casualty Insurance Segment:
Segment Net Operating Income	$	48.5	$	(20.8	)	$	69.3

Conference Call

Kemper will discuss its fourth quarter 2019 results in a conference call on Monday, February 10, at 5:00 p.m. Eastern (4:00 p.m. Central) Time. Kemper’s conference call will be accessible via the internet and by telephone. The phone number for Kemper’s conference call is 844.826.3041. To listen via webcast, register online at the investor section of kemper.com at least 15 minutes prior to the webcast to download and install any necessary software.

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

More detailed financial information can be found in Kemper’s Investor Financial Supplement and Earnings Call Presentation for the fourth quarter of 2019, which is available at the investor section of kemper.com.

12

About Kemper

The Kemper family of companies is one of the nation’s leading specialized insurers. With nearly $13 billion in assets, Kemper is improving the world of insurance by providing affordable and easy-to-use personalized solutions to individuals, families and businesses through its Auto, Personal Insurance, Life and Health brands. Kemper serves over 6.4 million policies, is represented by more than 30,000 agents and brokers, and has over 8,900 associates dedicated to meeting the ever-changing needs of its customers.

Learn more about Kemper.

Cautionary Statements Regarding Forward-Looking Information

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

Any or all forward-looking statements may turn out to be wrong, and, accordingly, readers are cautioned not to place undue reliance on such statements, which speak only as of the date of this press release. Forward-looking statements involve a number of risks and uncertainties that are difficult to predict, and are not guarantees of future performance. Among the general factors that could cause actual results and financial condition to differ materially from estimated results and financial condition are the possibility that the anticipated benefits and synergies from an acquisition may not be fully realized to the extent or within the time frame previously expected and other factors listed in periodic reports filed by Kemper with the Securities and Exchange Commission (the “SEC”). No assurances can be given that the results and financial condition contemplated in any forward-looking statements will be achieved or will be achieved in any particular timetable. Kemper assumes no obligation to publicly correct or update any forward-looking statements as a result of events or developments subsequent to the date of this press release. The reader is advised, however, to consult any further disclosures Kemper makes on related subjects in its filings with the SEC.

###

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

13

EX-99.2

Exhibit 99.2

Investor Supplement

Fourth Quarter 2019

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

Non-GAAP Financial Measures

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

Caution Regarding Forward-Looking Statements

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

Any or all forward-looking statements may turn out to be wrong, and, accordingly, readers are cautioned not to place undue reliance on such statements, which speak only as of February 10, 2020, the date this Investor Supplement was included as an exhibit to the Company's Current Report on Form 8-K. Forward-looking statements involve a number of risks and uncertainties that are difficult to predict, and are not guarantees of future performance. Among the general factors that could cause actual results and financial condition to differ materially from estimated results and financial condition are those listed in periodic reports filed by Kemper with the SEC. No assurances can be given that the results and financial condition contemplated in any forward-looking statements will be achieved or will be achieved in any particular timetable. Kemper assumes no obligation to publicly correct or update any forward-looking statements as a result of events or developments subsequent to the date of this Investor Supplement. The reader is advised, however, to consult any further disclosures Kemper makes on related subjects in its filings with the SEC.

Kemper Corporation

Investor Supplement

Fourth Quarter 2019

Table of Contents

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

Kemper Corporation Consolidated Financial Highlights (Dollars in Millions, Except Per Share Amounts) (Unaudited)
	Three Months Ended																								Year Ended
	Dec 31, 2019			Sep 30, 2019			Jun 30, 2019			Mar 31, 2019			Dec 31, 2018			Sep 30, 2018			Jun 30, 2018			Mar 31, 2018			Dec 31, 2019		Dec 31, 2018
For Period Ended
Earned Premiums	$	1,145.8		1,135.2			1,116.6			$	1,074.8		$	1,063.6		$	1,052.9		$	658.1		$	609.8		$	4,472.4	$	3,384.4
Net Investment Income	93.9			91.7			96.0			82.7			91.3			92.0			78.4			79.2			364.3		340.9
Other Income	3.7			7.2			22.7			1.9			2.0			37.8			1.2			1.2			35.5		42.2
Income (Loss) from Change in Fair Value of Equity and Convertible Securities	39.2			9.8			25.5			64.4			(76.4		)	11.0			0.4			0.7			138.9		(64.3		)
Net Investment Gains (Loss)	1.1			(0.1		)	14.6			12.5			14.2			1.8			3.8			2.1			28.1		21.9
Total Revenues	$	1,283.7		$	1,243.8		$	1,275.4		$	1,236.3		$	1,094.7		$	1,195.5		$	741.9		$	693.0		$	5,039.2	$	3,725.1
Net Income	$	124.7		$	129.0		$	122.1		$	155.3		$	6.5		$	92.2		$	37.6		$	53.8		$	531.1	$	190.1
Income from Continuing Operations	$	124.7		$	129.0		$	122.1		$	155.3		$	5.0		$	92.3		$	37.5		$	53.6		$	531.1	$	188.4
Adjusted Consolidated Net Operating Income 1	$	97.9		$	130.0		$	91.5		$	98.9		$	59.9		$	104.5		$	36.5		$	57.5		$	418.3	$	258.4
Per Unrestricted Common Share Amounts:
Basic:
Net Income	$	1.87		$	1.93		$	1.87		$	2.38		$	0.10		$	1.42		$	0.73		$	1.03		$	8.04	$	3.25
Income from Continuing Operations	$	1.87		$	1.93		$	1.87		$	2.38		$	0.08		$	1.42		$	0.73		$	1.03		$	8.04	$	3.22
Adjusted Consolidated Net Operating Income 1	$	1.46		$	1.95		$	1.39		$	1.52		$	0.92		$	1.61		$	0.70		$	1.11		$	6.33	$	4.42
Diluted:
Net Income	$	1.85		$	1.91		$	1.84		$	2.35		$	0.10		$	1.40		$	0.73		$	1.02		$	7.96	$	3.22
Income from Continuing Operations	$	1.85		$	1.91		$	1.84		$	2.35		$	0.08		$	1.40		$	0.73		$	1.02		$	7.96	$	3.19
Adjusted Consolidated Net Operating Income 1	$	1.45		$	1.93		$	1.38		$	1.50		$	0.91		$	1.59		$	0.70		$	1.10		$	6.27	$	4.37
Dividends Paid to Shareholders Per Share	$	0.28		$	0.25		$	0.25		$	0.25		$	0.24		$	0.24		$	0.24		$	0.24		$	1.03	$	0.96
At Period End
Total Assets	$	12,989.1		$	12,819.9		$	12,616.5		$	12,182.2		$	11,544.9		$	11,772.6		$	8,840.5		$	8,371.0
Insurance Reserves	$	5,471.8		$	5,441.3		$	5,426.1		$	5,370.4		$	5,366.8		$	5,303.4		$	4,536.4		$	4,472.6
Debt	$	778.4		$	778.7		$	873.3		$	908.5		$	909.0		$	1,123.7		$	951.8		$	592.3
Shareholders’ Equity	$	3,972.3		$	3,894.2		$	3,683.7		$	3,320.1		$	3,050.1		$	3,063.8		$	2,045.7		$	2,063.8
Shareholders’ Equity Excluding Goodwill1,2	$	2,858.3		$	2,780.2		$	2,569.7		$	2,208.6		$	1,937.7		$	1,972.6		$	1,722.7		$	1,740.8
Common Shares Issued and Outstanding (In Millions)	66.666			66.642			66.564			64.931			64.757			64.738			51.559			51.533
Book Value Per Share2	$	59.59		$	58.43		$	55.34		$	51.13		$	47.10		$	47.33		$	39.68		$	40.05
Book Value Per Share Excluding Goodwill1,2	$	42.87		$	41.72		$	38.60		$	34.01		$	29.92		$	30.47		$	33.41		$	33.78
Book Value Per Share Excluding Net Unrealized Gains on Fixed Maturities1,2	$	53.08		$	51.51		$	49.82		$	47.41		$	45.40		$	45.66		$	36.85		36.35
Book Value Per Share Excluding Net Unrealized Gains on Fixed Maturities and Goodwill1,2	$	36.36		$	34.80		$	33.08		$	30.29		$	28.22		$	28.81		$	30.59		30.08
Debt to Total Capitalization2	16.4		%	16.7		%	19.2		%	21.5		%	23.0		%	26.8		%	31.8		%	22.3		%
Rolling 12 Months Return on 5-point Average Shareholders Equity2,3	14.8		%	12.1		%	12.4		%	10.8		%	7.7		%	9.7		%	8.5		%	8.5		%
1 Non-GAAP Financial Measure. See page 33 for definition.
2 See Capital Metrics on pages 8-9 for detail calculations.
3 Rolling 12 Months Return on 5-point Average Shareholders Equity is calculated by taking the last 12 months of Net Income (Loss) divided by the 5-point average Shareholders’ Equity. The 5-point Average Shareholders’ Equity is calculated by using a 5-point quarter average of Shareholders’ Equity for the 12 month period.

Page 3

Kemper Corporation Consolidated Statements of Operations (Dollars in Millions, Except Per Share Amounts)  (Unaudited)
	Three Months Ended																								Year Ended
	Dec 31, 2019			Sep 30, 2019			Jun 30, 2019			Mar 31, 2019			Dec 31, 2018			Sep 30, 2018			Jun 30, 2018			Mar 31, 2018			Dec 31, 2019			Dec 31, 2018
Revenues:
Earned Premiums	$	1,145.8		$	1,135.2		$	1,116.6		$	1,074.8		$	1,063.6		$	1,052.9		$	658.1		$	609.8		$	4,472.4		$	3,384.4
Net Investment Income	93.9			91.7			96.0			82.7			91.3			92.0			78.4			79.2			364.3			340.9
Other Income	3.7			7.2			22.7			1.9			2.0			37.8			1.2			1.2			35.5			42.2
Income (Loss) from Change in Fair Value of Equity and Convertible Securities	39.2			9.8			25.5			64.4			(76.4		)	11.0			0.4			0.7			138.9			(64.3		)
Net Realized Gains on Sales of Investments	2.8			1.7			21.3			16.1			16.4			3.6			3.8			2.6			41.9			26.4
Other-than-temporary Impairment Losses:
Total Other-than-temporary Impairment Losses	(1.7		)	(1.8		)	(6.7		)	(3.5		)	(2.2		)	(1.8		)	—			(0.5		)	(13.7		)	(4.5		)
Portion of Losses Recognized in Other Comprehensive Income	—			—			—			(0.1		)	—			—			—			—			(0.1		)	—
Net Impairment Losses Recognized in Earnings	(1.7		)	(1.8		)	(6.7		)	(3.6		)	(2.2		)	(1.8		)	—			(0.5		)	(13.8		)	(4.5		)
Total Revenues	1,283.7			1,243.8			1,275.4			1,236.3			1,094.7			1,195.5			741.9			693.0			5,039.2			3,725.1
Expenses:
Policyholders’ Benefits and Incurred Losses and Loss Adjustment Expenses	814.9			782.6			825.4			765.4			772.8			757.3			499.5			436.9			3,188.3			2,466.5
Insurance Expenses	265.4			256.0			263.5			234.8			273.2			296.0			171.2			160.1			1,019.7			900.5
Loss from Early Extinguishment of Debt	—			5.8			—			—			—			—			—			—			5.8			—
Interest and Other Expenses	46.5			37.9			38.0			41.4			42.6			61.7			25.7			29.0			163.8			159.0
Total Expenses	1,126.8			1,082.3			1,126.9			1,041.6			1,088.6			1,115.0			696.4			626.0			4,377.6			3,526.0
Income from Continuing Operations before Income Taxes	156.9			161.5			148.5			194.7			6.1			80.5			45.5			67.0			661.6			199.1
Income Tax Benefit (Expense)	(32.2		)	(32.5		)	(26.4		)	(39.4		)	(1.1		)	11.8			(8.0		)	(13.4		)	(130.5		)	(10.7		)
Income from Continuing Operations	124.7			129.0			122.1			155.3			5.0			92.3			37.5			53.6			531.1			188.4
Discontinued Operations:
Income (Loss) from Discontinued Operations before Income Taxes	—			—			—			—			2.1			(0.2		)	0.1			0.3			—			2.3
Income Tax Benefit (Expense)	—			—			—			—			(0.6		)	0.1			—			(0.1		)	—			(0.6		)
Income (Loss) from Discontinued Operations	—			—			—			—			1.5			(0.1		)	0.1			0.2			—			1.7
Net Income	$	124.7		$	129.0		$	122.1		$	155.3		$	6.5		$	92.2		$	37.6		$	53.8		$	531.1		$	190.1
Income from Continuing Operations Per Unrestricted Share:
Basic	$	1.87		$	1.93		$	1.87		$	2.38		$	0.08		$	1.42		$	0.73		$	1.03		$	8.04		$	3.22
Diluted	$	1.85		$	1.91		$	1.84		$	2.35		$	0.08		$	1.40		$	0.73		$	1.02		$	7.96		$	3.19
Net Income Per Unrestricted Share:
Basic	$	1.87		$	1.93		$	1.87		$	2.38		$	0.10		$	1.42		$	0.73		$	1.03		$	8.04		$	3.25
Diluted	$	1.85		$	1.91		$	1.84		$	2.35		$	0.10		$	1.40		$	0.73		$	1.02		$	7.96		$	3.22
Dividends Paid to Shareholders Per Share	$	0.28		$	0.25		$	0.25		$	0.25		$	0.24		$	0.24		$	0.24		$	0.24		$	1.03		$	0.96
Weighted Average Unrestricted Common Shares Outstanding (in Millions)	66.650			66.622			65.408			64.815			64.748			64.580			51.550			51.503			65.881			58.149

Page 4

Kemper Corporation Consolidated Balance Sheets (Dollars in Millions)  (Unaudited)
	Dec 31, 2019		Sep 30, 2019		Jun 30, 2019		Mar 31, 2019		Dec 31, 2018		Sep 30, 2018		Jun 30, 2018		Mar 31, 2018
Assets:
Investments:
Fixed Maturities at Fair Value	$	6,922.1	$	6,883.6	$	6,540.2	$	6,573.1	$	6,424.2	$	6,108.6	$	5,260.3	$	5,301.2
Equity Securities at Fair Value	907.3		928.7		923.3		916.9		684.4		815.8		514.9		568.2
Equity Securities at Modified Cost	41.9		41.2		38.1		39.2		41.5		50.9		54.1		59.3
Equity Method Limited Liability Investments at Cost Plus Cumulative Undistributed Earnings	220.4		213.4		219.7		197.8		187.0		170.0		170.9		168.8
Convertible Securities at Fair Value	37.3		35.6		34.3		33.8		31.5		—		—		—
Short-term Investments at Cost which Approximates Fair Value	470.9		424.2		642.5		350.4		286.1		688.5		169.0		188.8
Other Investments	444.5		447.4		442.8		425.6		414.8		412.8		411.7		413.0
Total Investments	9,044.4		8,974.1		8,840.9		8,536.8		8,069.5		8,246.6		6,580.9		6,699.3
Cash	136.8		133.6		104.4		107.0		75.1		92.8		649.9		115.4
Receivables from Policyholders	1,117.1		1,139.8		1,095.2		1,048.6		1,007.1		1,029.9		407.5		386.0
Other Receivables	219.7		217.1		248.1		254.6		245.4		243.1		189.2		187.9
Deferred Policy Acquisition Costs	537.7		536.5		521.0		499.2		470.0		447.4		388.9		378.0
Goodwill	1,114.0		1,114.0		1,114.0		1,111.5		1,112.4		1,091.2		323.0		323.0
Current Income Tax Assets	44.7		44.1		41.0		19.7		38.9		58.1		0.9		—
Deferred Income Tax Assets	—		—		—		—		—		—		10.6		—
Other Assets	774.7		660.7		651.9		604.8		526.5		563.5		289.6		281.4
Total Assets	$	12,989.1	$	12,819.9	$	12,616.5	$	12,182.2	$	11,544.9	$	11,772.6	$	8,840.5	$	8,371.0
Liabilities and Shareholders’ Equity:
Insurance Reserves:
Life and Health	$	3,502.0	$	3,499.7	$	3,514.2	$	3,501.7	$	3,491.9	$	3,484.3	$	3,476.7	$	3,467.5
Property and Casualty	1,969.8		1,941.6		1,911.9		1,868.7		1,874.9		1,819.1		1,059.7		1,005.1
Total Insurance Reserves	5,471.8		5,441.3		5,426.1		5,370.4		5,366.8		5,303.4		4,536.4		4,472.6
Unearned Premiums	1,545.5		1,574.9		1,545.6		1,499.5		1,424.3		1,470.9		723.8		690.2
Policyholder Contract Liabilities	309.8		204.1		221.8		254.5		76.8		77.1		76.8		76.8
Current Income Tax Liabilities	—		—		—		—		—		—		—		0.2
Deferred Income Tax Liabilities	178.2		175.3		124.1		82.6		26.2		40.4		—		1.1
Liability for Unrecognized Tax Benefits	—		—		—		3.9		4.4		4.5		9.2		8.1
Accrued Expenses and Other Liabilities	733.1		751.4		741.9		742.7		687.3		688.8		496.8		465.9
Long-term Debt, Current and Non-current, at Amortized Cost	778.4		778.7		873.3		908.5		909.0		1,123.7		951.8		592.3
Total Liabilities	9,016.8		8,925.7		8,932.8		8,862.1		8,494.8		8,708.8		6,794.8		6,307.2
Shareholders’ Equity:
Common Stock	6.7		6.7		6.7		6.5		6.5		6.5		5.2		5.1
Paid-in Capital	1,819.2		1,812.9		1,806.4		1,673.0		1,666.3		1,661.3		681.5		676.9
Retained Earnings	1,810.3		1,704.5		1,593.7		1,489.7		1,355.5		1,365.1		1,289.4		1,264.9
Accumulated Other Comprehensive Income	336.1		370.1		276.9		150.9		21.8		30.9		69.6		116.9
Total Shareholders’ Equity	3,972.3		3,894.2		3,683.7		3,320.1		3,050.1		3,063.8		2,045.7		2,063.8
Total Liabilities and Shareholders’ Equity	$	12,989.1	$	12,819.9	$	12,616.5	$	12,182.2	$	11,544.9	$	11,772.6	$	8,840.5	$	8,371.0

Page 5

Kemper Corporation Consolidated Statements of Cash Flows (Dollars in Millions)  (Unaudited)
	Year Ended
	Dec 31, 2019			Dec 31, 2018
Operating Activities:
Net Income	$	531.1		$	190.1
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities:
Amortization of Intangible Assets Acquired	29.7			156.3
Equity in Earnings of Equity Method Limited Liability Investments	(1.0		)	(11.0		)
Distribution of Accumulated Earnings of Equity Method Limited Liability Investments	11.9			13.9
Contribution to Pension Plan	(55.3		)	—
Increase in Value of Equity Securities at Fair Value	(138.9		)	64.3
Amortization of Investment Securities and Depreciation of Investment Real Estate	0.6			7.7
Net Realized Gains on Sales of Investments	(41.9		)	(26.4		)
Net Impairment Losses Recognized in Earnings	13.8			4.5
Loss from Early Extinguishment of Debt	5.8			—
Depreciation of Property and Equipment	32.8			15.6
Increase in Receivables	(84.3		)	(80.7		)
Increase in Deferred Policy Acquisition Costs	(66.9		)	(104.6		)
Increase in Insurance Reserves	102.3			183.2
Increase in Unearned Premiums	121.2			54.7
Change in Income Taxes	58.8			13.1
Change in Accrued Expenses and Other Liabilities	13.1			49.9
Other, Net	5.3			8.6
Net Cash Provided by Operating Activities (Carryforward to page 7)	538.1			539.2

Page 6

Kemper Corporation Consolidated Statements of Cash Flows (Dollars in Millions)  (Unaudited)
	Year Ended
	Dec 31, 2019			Dec 31, 2018
Net Cash Provided by Operating Activities (Carryforward from page 6)	538.1			539.2
Investing Activities:
Sales, Paydowns and Maturities of Fixed Maturities	1,299.0			2,643.3
Purchases of Fixed Maturities	(1,354.9		)	(2,413.2		)
Sales of Equity Securities	217.3			351.9
Purchases of Equity Securities	(307.0		)	(478.5		)
Return of Investment of Equity Method Limited Liability Investments	29.5			14.1
Acquisitions of Equity Method Limited Liability Investments	(73.8		)	(43.1		)
Decrease (Increase) in Short-term Investments	(176.0		)	52.7
Improvements of Investment Real Estate	(1.3		)	(1.5		)
Acquisition of Business, Net of Cash Acquired	—			(560.6		)
Acquisitions of Mortgage Loans	(44.6		)	—
Paydowns of Mortgage Loans	17.2			—
Increase (Decrease) in Other Investments	(0.1		)	(2.0		)
Purchase of Corporate-owned Life Insurance	(150.0		)	—
Acquisition of Software and Long-lived Assets	(83.9		)	(65.3		)
Other, Net	(4.8		)	4.6
Net Cash Provided (Used) by Investing Activities	(633.4		)	(497.6		)
Financing Activities:
Net Proceeds from Issuances of Long-term Debt	49.9			249.4
Repayments of Long-term Debt	(185.0		)	(215.0		)
Dividends and Dividend Equivalents Paid	(67.8		)	(56.4		)
Proceeds from Policyholder Contract Liabilities	615.7			11.4
Repayment of Policyholder Contract Liabilities	(383.6		)	(2.5		)
Proceeds from Issuance of Common Stock, Net of Transaction Costs	127.5			—
Proceeds from Shares Issued under Employee Stock Purchase Plan	(2.1		)	—
Cash Exercise of Stock Options	2.4			0.9
Net Cash Provided by Financing Activities	157.0			(12.2		)
Increase in Cash	61.7			29.4
Cash, Beginning of Year	75.1			45.7
Cash, End of Period	$	136.8		$	75.1

Page 7

Kemper Corporation Capital Metrics (Dollars and Shares in Millions, Except Per Share Amounts) (Unaudited)
	Three Months Ended
	Dec 31, 2019			Sep 30, 2019			Jun 30, 2019			Mar 31, 2019			Dec 31, 2018			Sep 30, 2018			Jun 30, 2018			Mar 31, 2018
Book Value Per Share
Numerator
Shareholders’ Equity	$	3,972.3		$	3,894.2		$	3,683.7		$	3,320.1		$	3,050.1		$	3,063.8		$	2,045.7		$	2,063.8
Less: Goodwill	(1,114.0		)	(1,114.0		)	(1,114.0		)	(1,111.5		)	(1,112.4		)	(1,091.2		)	(323.0		)	(323.0		)
Shareholders’ Equity Excluding Goodwill1	$	2,858.3		$	2,780.2		$	2,569.7		$	2,208.6		$	1,937.7		$	1,972.6		$	1,722.7		$	1,740.8
Shareholders’ Equity	$	3,972.3		$	3,894.2		$	3,683.7		$	3,320.1		$	3,050.1		$	3,063.8		$	2,045.7		$	2,063.8
Less: Net Unrealized Gains on Fixed Maturities	(434.0		)	(461.3		)	(367.8		)	(241.9		)	(110.4		)	(107.6		)	(145.6		)	(190.5		)
Shareholders’ Equity Excluding Net Unrealized Gains on Fixed Maturities1	$	3,538.3		$	3,432.9		$	3,315.9		$	3,078.2		$	2,939.7		$	2,956.2		$	1,900.1		$	1,873.3
Less: Goodwill	(1,114.0		)	(1,114.0		)	(1,114.0		)	(1,111.5		)	(1,112.4		)	(1,091.2		)	(323.0		)	(323.0		)
Shareholders’ Equity Excluding Net Unrealized Gains on Fixed Maturities and Goodwill1	$	2,424.3		$	2,318.9		$	2,201.9		$	1,966.7		$	1,827.3		$	1,865.0		$	1,577.1		$	1,550.3
Denominator
Common Shares Issued and Outstanding	66.666			66.642			66.564			64.931			64.757			64.738			51.559			51.533
Book Value Per Share	$	59.59		$	58.43		$	55.34		$	51.13		$	47.10		$	47.33		$	39.68		$	40.05
Book Value Per Share Excluding Goodwill1	$	42.87		$	41.72		$	38.60		$	34.01		$	29.92		$	30.47		$	33.41		$	33.78
Book Value Per Share Excluding Net Unrealized Gains on Fixed Maturities1	$	53.08		$	51.51		$	49.82		$	47.41		$	45.40		$	45.66		$	36.85		$	36.35
Book Value Per Share Excluding Net Unrealized Gains on Fixed Maturities and Goodwill1	$	36.36		$	34.80		$	33.08		$	30.29		$	28.22		$	28.81		$	30.59		$	30.08
Return on Shareholders’ Equity
Numerator
Rolling 12 Months Net Income	$	531.1		$	412.9		$	376.1		$	291.6		$	190.1		$	220.5		$	176.0		$	175.0
Denominator (5-point Average)
5-point Average Shareholders’ Equity	$	3,584.1		$	3,402.4		$	3,032.7		$	2,708.7		$	2,467.8		$	2,274.3		$	2,068.2		$	2,055.8
Rolling 12 Months Return on Average Shareholders' Equity (5-point Average)	14.8		%	12.1		%	12.4		%	10.8		%	7.7		%	9.7		%	8.5		%	8.5		%
Return on Shareholders’ Equity Excluding Goodwill1
Denominator (5-point Average)
5-point Average Shareholders’ Equity Excluding Goodwill1	$	2,470.9		$	2,293.8		$	2,082.3		$	1,916.5		$	1,833.3		$	1,797.6		$	1,745.2		$	1,732.8
Rolling 12 Months Return on Average Shareholders' Equity Excluding Goodwill (5-point Average)1	21.5		%	18.0		%	18.1		%	15.2		%	10.4		%	12.3		%	10.1		%	10.1		%
Return on Shareholders’ Equity Excluding Net Unrealized Gains on Fixed Maturities1
Denominator (5-point Average)
5-point Average Shareholders’ Equity Excluding Net Unrealized Gains on Fixed Maturities1	$	3,261.0		$	3,144.6		$	2,838.0		$	2,549.5		$	2,299.9		$	2,081.0		$	1,850.2		$	1,827.3
Rolling 12 Months Return on Average Shareholders' Equity Excluding Net Unrealized Gains on Fixed Maturities (5-point Average)1	16.3		%	13.1		%	13.3		%	11.4		%	8.3		%	10.6		%	9.5		%	9.6		%
Return on Shareholders’ Equity Excluding Net Unrealized Gains on Fixed Maturities and Goodwill1
Denominator (5-point Average)
5-point Average Shareholders’ Equity Excluding Net Unrealized Gains on Fixed Maturities and Goodwill1	$	2,147.8		$	2,036.0		$	1,887.6		$	1,757.3		$	1,665.4		$	1,604.4		$	1,527.2		$	1,504.3
Rolling 12 Months Return on Average Shareholders' Equity Excluding Net Unrealized Gains on Fixed Maturities and Goodwill (5-point Average)1	24.7		%	20.3		%	19.9		%	16.6		%	11.4		%	13.7		%	11.5		%	11.6		%
1 Non-GAAP financial measure. See definitions beginning on page 33.

Page 8

Kemper Corporation Capital Metrics (Dollars and Shares in Millions, Except Per Share Amounts) (Unaudited)
	Three Months Ended
	Dec 31, 2019			Sep 30, 2019			Jun 30, 2019			Mar 31, 2019			Dec 31, 2018			Sep 30, 2018			Jun 30, 2018			Mar 31, 2018
Debt and Total Capitalization
Debt	$	778.4		$	778.7		$	873.3		$	908.5		$	909.0		$	1,123.7		$	951.8		$	592.3
Shareholders’ Equity	3,972.3			3,894.2			3,683.7			3,320.1			3,050.1			3,063.8			2,045.7			2,063.8
Total Capitalization	$	4,750.7		$	4,672.9		$	4,557.0		$	4,228.6		$	3,959.1		$	4,187.5		$	2,997.5		$	2,656.1
Ratio of Debt to Shareholders’ Equity	19.6		%	20.0		%	23.7		%	27.4		%	29.8		%	36.7		%	46.5		%	28.7		%
Ratio of Debt to Total Capitalization	16.4		%	16.7		%	19.2		%	21.5		%	23.0		%	26.8		%	31.8		%	22.3		%
Parent Company Liquidity
Kemper Holding Company Cash and Investments	$	206.8		$	169.1		$	312.7		$	118.6		$	100.6		$	91.3		$	708.6		$	184.4
Borrowings Available Under Credit Agreement	400.0			400.0			400.0			300.0			300.0			300.0			300.0			225.0
Parent Company Liquidity	$	606.8		$	569.1		$	712.7		$	418.6		$	400.6		$	391.3		$	1,008.6		$	409.4
Capital Returned to Shareholders
Cash Dividends Paid	18.7			16.7			16.2			16.2			15.6			15.6			12.4			12.5

Page 9

Kemper Corporation Debt Outstanding, FHLB Advances and Ratings (Dollars in Millions) (Unaudited)
	Dec 31, 2019		Sep 30, 2019		Jun 30, 2019		Mar 31, 2019		Dec 31, 2018		Sep 30, 2018		Jun 30, 2018		Mar 31, 2018
Kemper Corporation:
Term Loan due June 29, 2020	$	—	$	—	$	—	$	34.9	$	34.9	$	249.4	$	249.4	$	—
Term Loan due July 5, 2023	49.9		49.9		—		—		—		—		$	—	$	—
Senior Notes at Amortized Cost:
5.0% Senior Notes due September 19, 2022	279.9		280.3		280.6		281.0		281.5		281.7		—		—
4.35% Senior Notes due February 15, 2025	448.6		448.5		448.5		448.4		448.4		448.4		448.2		448.1
7.375% Subordinated Debentures due February 27, 2054 at Amortized Cost	—		—		144.2		144.2		144.2		144.2		144.2		144.2
Debt Outstanding	$	778.4	$	778.7	$	873.3	$	908.5	$	909.0	$	1,123.7	$	841.8	$	592.3
Federal Home Loan Bank Advances to Insurance Subsidiaries:
Reported as Policyholder Account Liabilities:
Federal Home Loan Bank of Chicago	$	243.4	$	137.6	$	155.0	$	187.7	$	10.0	$	10.0	$	10.0	$	10.0
Reported as Debt Outstanding:
Federal Home Loan Bank of Dallas	$	—	$	—	$	—	$	—	$	—	$	—	$	55.0	$	—
Federal Home Loan Bank of Chicago	—		—		—		—		—		—		55.0		—
	A.M. Best		Moody’s		S&P		Fitch
As of Date of Financial Supplement
Kemper Debt Ratings:
5.0% Senior Notes due September 19, 2022	bbb-		Baa3		BBB-		—
4.35% Senior Notes due February 15, 2025	bbb-		Baa3		BBB-		BBB
Term Loan due July 5, 2023	NR		Baa3		BBB-		BBB+
Insurance Company Financial Strength Ratings:
Trinity Universal Insurance Company	A-		A3		A-		A
United Insurance Company of America	A-		A3		A-		A-
Reserve National Insurance Company	A-		NR		NR		NR
Infinity Insurance Company	A-		A3		A-		NR

NR - Not Rated

Page 10

Kemper Corporation Segment Revenues (Dollars in Millions) (Unaudited)
	Three Months Ended																								Year Ended
	Dec 31, 2019			Sep 30, 2019			Jun 30, 2019			Mar 31, 2019			Dec 31, 2018			Sep 30, 2018			Jun 30, 2018			Mar 31, 2018			Dec 31, 2019			Dec 31, 2018
Revenues:
Specialty Property & Casualty Insurance:
Earned Premiums:
Specialty Automobile	$	733.1		$	719.2		$	703.7		$	669.6		$	660.5		$	655.3		$	307.5		$	266.2		$	2,825.6		$	1,889.5
Commercial Automobile	66.6			64.2			62.3			59.7			57.3			55.9			12.5			12.2			252.8			137.9
Total Specialty Property & Casualty Insurance Earned Premium	799.7			783.4			766.0			729.3			717.8			711.2			320.0			278.4			3,078.4			2,027.4
Net Investment Income	28.3			28.8			28.9			21.5			22.6			20.7			10.2			9.9			107.5			63.4
Other Income	0.8			4.4			1.0			0.8			0.8			0.9			0.4			0.3			7.0			2.4
Total Specialty Property & Casualty Insurance Revenues	828.8			816.6			795.9			751.6			741.2			732.8			330.6			288.6			3,192.9			2,093.2
Preferred Property & Casualty Insurance:
Earned Premiums:
Preferred Automobile	117.2			119.7			117.9			115.4			115.2			111.4			108.7			104.9			470.2			440.2
Homeowners	58.7			61.5			60.8			60.3			63.6			62.5			62.2			61.8			241.3			250.1
Other Personal	9.3			9.8			9.8			9.9			10.0			10.1			10.2			10.1			38.8			40.4
Total Preferred Property & Casualty Insurance Earned Premium	185.2			191.0			188.5			185.6			188.8			184.0			181.1			176.8			750.3			730.7
Net Investment Income	11.5			12.0			12.3			8.3			14.0			20.1			14.0			13.7			44.1			61.8
Total Preferred Property & Casualty Insurance Revenues	196.7			203.0			200.8			193.9			202.8			204.1			195.1			190.5			794.4			792.5
Life & Health Insurance:
Earned Premiums:
Life	95.6			96.2			97.0			95.8			94.1			95.2			95.4			93.7			384.6			378.4
Accident and Health	48.5			47.6			47.9			46.9			45.5			44.9			43.8			43.3			190.9			177.5
Property	16.8			17.0			17.2			17.2			17.4			17.6			17.8			17.6			68.2			70.4
Total Life & Health Insurance Earned Premiums	160.9			160.8			162.1			159.9			157.0			157.7			157.0			154.6			643.7			626.3
Net Investment Income	52.0			49.7			53.0			51.7			51.7			51.0			54.5			53.7			206.4			210.9
Other Income	2.9			2.9			1.6			1.1			1.1			1.2			0.9			0.8			8.5			4.0
Total Life & Health Insurance Revenues	215.8			213.4			216.7			212.7			209.8			209.9			212.4			209.1			858.6			841.2
Total Segment Revenues	1,241.3			1,233.0			1,213.4			1,158.2			1,153.8			1,146.8			738.1			688.2			4,845.9			3,726.9
Income (Loss) from Change in Fair Value of Equity and Convertible Securities	39.2			9.8			25.5			64.4			(76.4		)	11.0			0.4			0.7			138.9			(64.3		)
Net Realized Gains on Sales of Investments	2.8			1.7			21.3			16.1			16.4			3.6			3.8			2.6			41.9			26.4
Net Impairment Losses Recognized in Earnings	(1.7		)	(1.8		)	(6.7		)	(3.6		)	(2.2		)	(1.8		)	—			(0.5		)	(13.8		)	(4.5		)
Other	2.1			1.1			21.9			1.2			3.1			35.9			(0.4		)	2.0			26.3			40.6
Total Revenues	$	1,283.7		$	1,243.8		$	1,275.4		$	1,236.3		$	1,094.7		$	1,195.5		$	741.9		$	693.0		$	5,039.2		$	3,725.1

Page 11

Kemper Corporation Segment Operating Results (Dollars in Millions)  (Unaudited)
	Three Months Ended																								Year Ended
	Dec 31, 2019			Sep 30, 2019			Jun 30, 2019			Mar 31, 2019			Dec 31, 2018			Sep 30, 2018			Jun 30, 2018			Mar 31, 2018			Dec 31, 2019			Dec 31, 2018
Segment Operating Profit:
Specialty Property & Casualty Insurance	$	78.5		$	98.6		$	79.4		$	99.4		$	61.5		$	26.9		$	28.2		$	29.0		$	355.9		$	145.6
Preferred Property & Casualty Insurance	16.1			26.5			6.4			3.3			6.6			14.1			(8.7		)	16.6			52.3			28.6
Life & Health Insurance	35.5			41.0			16.1			29.3			18.3			33.5			33.8			30.3			121.9			115.9
Total Segment Operating Profit	130.1			166.1			101.9			132.0			86.4			74.5			53.3			75.9			530.1			290.1
Partial Satisfaction of Judgment	—			—			20.1			—			—			35.7			—			—			20.1			35.7
Other	(7.3		)	(3.1		)	(12.4		)	(8.6		)	(11.4		)	(14.3		)	(8.4		)	(5.5		)	(31.4		)	(39.6		)
Corporate and Other Operating Income(Loss)	(7.3		)	(3.1		)	7.7			(8.6		)	(11.4		)	21.4			(8.4		)	(5.5		)	(11.3		)	(3.9		)
Total Operating Profit	122.8			163.0			109.6			123.4			75.0			95.9			44.9			70.4			518.8			286.2
Income (Loss) From:
Change in Fair Value of Equity and Convertible Securities	39.2			9.8			25.5			64.4			(76.4		)	11.0			0.4			0.7			138.9			(64.3		)
Net Realized Gains on Sales of Investments	2.8			1.7			21.3			16.1			16.4			3.6			3.8			2.6			41.9			26.4
Net Impairment Losses Recognized in Earnings	(1.7		)	(1.8		)	(6.7		)	(3.6		)	(2.2		)	(1.8		)	—			(0.5		)	(13.8		)	(4.5		)
Acquisition Related Transaction Integration and Other Costs	(6.2		)	(5.4		)	(1.2		)	(5.6		)	(6.7		)	(28.2		)	(3.6		)	(6.2		)	(18.4		)	(44.7		)
Loss from Early Extinguishment of Debt	—			(5.8		)	—			—			—			—			—			—			(5.8		)	—
Income from Continuing Operations before Income Taxes	$	156.9		$	161.5		$	148.5		$	194.7		$	6.1		$	80.5		$	45.5		$	67.0		$	661.6		$	199.1
Segment Net Operating Income:
Specialty Property & Casualty Insurance	$	62.3		$	78.5		$	62.7		$	79.6		$	48.5		$	21.5		$	22.4		$	23.4		$	283.1		$	115.8
Preferred Property & Casualty Insurance	12.8			21.1			5.2			2.8			6.0			12.2			(6.0		)	13.5			41.9			25.7
Life & Health Insurance	28.9			33.4			13.3			23.1			13.6			27.1			26.7			24.1			98.7			91.5
Total Segment Net Operating Income	104.0			133.0			81.2			105.5			68.1			60.8			43.1			61.0			423.7			233.0
Corporate and Other Net Operating Income (Loss) From:
Effects of Tax Law Changes	—			—			—			—			0.4			26.0			—			—			—			26.4
Partial Satisfaction of Legal Judgment	—			—			15.9			—			—			28.2			—			—			15.9			28.2
Other	(6.1		)	(3.0		)	(5.6		)	(6.6		)	(8.6		)	(10.5		)	(6.6		)	(3.5		)	(21.3		)	(29.2		)
Corporate and Other Net Operating Income (Loss)	(6.1		)	(3.0		)	10.3			(6.6		)	(8.2		)	43.7			(6.6		)	(3.5		)	(5.4		)	25.4
Adjusted Consolidated Net Operating Income	97.9			130.0			91.5			98.9			59.9			104.5			36.5			57.5			418.3			258.4
Net Income (Loss) From:
Change in Fair Value of Equity and Convertible Securities	30.9			7.8			20.1			50.9			(60.4		)	8.7			0.3			0.6			109.7			(50.8		)
Net Realized Gains on Sales of Investments	2.2			1.4			16.8			12.7			13.0			2.8			3.0			2.1			33.1			20.9
Net Impairment Losses Recognized in Earnings	(1.3		)	(1.5		)	(5.3		)	(2.8		)	(1.8		)	(1.4		)	—			(0.4		)	(10.9		)	(3.6		)
Acquisition Related Transaction, Integration and Other Costs	(5.0		)	(4.1		)	(1.0		)	(4.4		)	(5.7		)	(22.3		)	(2.3		)	(6.2		)	(14.5		)	(36.5		)
Loss from Early Extinguishment of Debt	—			(4.6		)	—			—			—			—			—			—			(4.6		)	—
Income from Continuing Operations	$	124.7		$	129.0		$	122.1		$	155.3		$	5.0		$	92.3		$	37.5		$	53.6		$	531.1		$	188.4

Page 12

Kemper Corporation Catastrophe Frequency and Severity (Dollars in Millions) (Unaudited)
	Year Ended Dec 31, 2019
	Specialty Property & Casualty Insurance Segment				Preferred Property & Casualty Insurance Segment			Life & Health Insurance Segment			Consolidated
	Number of Events		Losses and LAE		Number of Events	Losses and LAE		Number of Events	Losses and LAE		Number of Events	Losses and LAE
Range of Losses and LAE Per Event:
Below $5	41		$	11.1	53	30.9		29	$	3.1	56	$	42.4
$5 - $10	—		—		3	19.0		—	—		3	20.8
$10 - $15	—		—		1	13.1		—	—		1	14.0
$15 - $20	—		—		—	—		—	—		—	—
$20 - $25	—		—		—	—		—	—		—	—
Greater Than $25	—		—		—	—		—	—		—	—
Total	41		$	11.1	57	$	63.0	29	$	3.1	60	$	77.2
	Year Ended Dec 31, 2018
	Specialty Property & Casualty Insurance Segment				Preferred Property & Casualty Insurance Segment			Life & Health Insurance Segment			Consolidated
	Number of Events		Losses and LAE		Number of Events	Losses and LAE		Number of Events	Losses and LAE		Number of Events	Losses and LAE
Range of Losses and LAE Per Event:
Below $5	$	35	$	4.7	45	32.9		24	$	4.0	45	$	34.7
$5 - $10	—		—		3	21.3		—	—		4	27.6
$10 - $15	—		—		—	—		—	—		—	—
$15 - $20	—		—		—	—		—	—		—	—
$20 - $25	—		—		—	—		—	—		—	—
Greater Than $25	—		—		1	33.1		—	—		1	33.7
Total	35		$	4.7	49	$	87.3	24	$	4.0	50	$	96.0

Page 13

Kemper Corporation Specialty Property & Casualty Insurance Segment Results of Operations and Selected Financial Information (Dollars in Millions) (Unaudited)
	Three Months Ended																								Year Ended
	Dec 31, 2019			Sep 30, 2019			Jun 30, 2019			Mar 31, 2019			Dec 31, 2018			Sep 30, 2018			Jun 30, 2018			Mar 31, 2018			Dec 31, 2019			Dec 31, 2018
Results of Operations
Net Premiums Written	$	782.5		$	815.0		$	804.7		$	809.1		$	674.7		$	735.4		$	338.9		$	318.4		$	3,211.3		$	2,067.4
Earned Premiums	$	799.7		$	783.4		$	766.0		$	729.3		$	717.8		$	711.2		$	320.0		$	278.4		$	3,078.4		$	2,027.4
Net Investment Income	28.3			28.8			28.9			21.5			22.6			20.7			10.2			9.9			107.5			63.4
Other Income	0.8			4.4			1.0			0.8			0.8			0.9			0.4			0.3			7.0			2.4
Total Revenues	828.8			816.6			795.9			751.6			741.2			732.8			330.6			288.6			3,192.9			2,093.2
Incurred Losses and LAE related to:
Current Year:
Non-catastrophe Losses and LAE	599.5			579.4			579.2			544.3			530.3			527.6			247.2			212.3			2,302.4			1,517.4
Catastrophe Losses and LAE	3.8			2.3			4.4			0.6			1.0			1.4			2.1			0.2			11.1			4.7
Prior Years:
Non-catastrophe Losses and LAE	(4.1		)	(4.1		)	(8.6		)	(18.3		)	—			(1.6		)	4.1			(0.5		)	(35.1		)	2.0
Catastrophe Losses and LAE	0.2			0.2			(0.1		)	0.2			—			—			—			(0.3		)	0.5			(0.3		)
Total Incurred Losses and LAE	599.4			577.8			574.9			526.8			531.3			527.4			253.4			211.7			2,278.9			1,523.8
Insurance Expenses	150.7			139.2			140.9			124.8			148.0			176.8			49.0			47.9			555.6			421.7
Other Expenses	0.2			1.0			0.7			0.6			0.4			1.7			—			—			2.5			2.1
Operating Profit	78.5			98.6			79.4			99.4			61.5			26.9			28.2			29.0			355.9			145.6
Income Tax Expense	(16.2		)	(20.1		)	(16.7		)	(19.8		)	(13.0		)	(5.4		)	(5.8		)	(5.6		)	(72.8		)	(29.8		)
Segment Net Operating Income	$	62.3		$	78.5		$	62.7		$	79.6		$	48.5		$	21.5		$	22.4		$	23.4		$	283.1		$	115.8
Ratios Based On Earned Premiums
Current Year Non-catastrophe Losses and LAE Ratio	75.0		%	74.0		%	75.6		%	74.6		%	73.9		%	74.2		%	77.2		%	76.2		%	74.7		%	74.9		%
Current Year Catastrophe Losses and LAE Ratio	0.5			0.3			0.6			0.1			0.1			0.2			0.7			0.1			0.4			0.2
Prior Years Non-catastrophe Losses and LAE Ratio	(0.5		)	(0.5		)	(1.1		)	(2.5		)	—			(0.2		)	1.3			(0.2		)	(1.1		)	0.1
Prior Years Catastrophe Losses and LAE Ratio	—			—			—			—			—			—			—			(0.1		)	—			—
Total Incurred Loss and LAE Ratio	75.0			73.8			75.1			72.2			74.0			74.2			79.2			76.0			74.0			75.2
Insurance Expense Ratio	18.8			17.8			18.4			17.1			20.6			24.9			15.3			17.2			18.0			20.8
Combined Ratio	93.8		%	91.6		%	93.5		%	89.3		%	94.6		%	99.1		%	94.5		%	93.2		%	92.0		%	96.0		%
Underlying Combined Ratio1
Current Year Non-catastrophe Losses and LAE Ratio	75.0		%	74.0		%	75.6		%	74.6		%	73.9		%	74.2		%	77.2		%	76.2		%	74.7		%	74.9		%
Insurance Expense Ratio	18.8			17.8			18.4			17.1			20.6			24.9			15.3			17.2			18.0			20.8
Underlying Combined Ratio	93.8		%	91.8		%	94.0		%	91.7		%	94.5		%	99.1		%	92.5		%	93.4		%	92.7		%	95.7		%
Non-GAAP Measure Reconciliation
Combined Ratio as Reported	93.8		%	91.6		%	93.5		%	89.3		%	94.6		%	99.1		%	94.5		%	93.2		%	92.0		%	96.0		%
Less:
Current Year Catastrophe Losses and LAE Ratio	0.5			0.3			0.6			0.1			0.1			0.2			0.7			0.1			0.4			0.2
Prior Years Non-catastrophe Losses and LAE Ratio	(0.5		)	(0.5		)	(1.1		)	(2.5		)	—			(0.2		)	1.3			(0.2		)	(1.1		)	0.1
Prior Years Catastrophe Losses and LAE Ratio	—			—			—			—			—			—			—			(0.1		)	—			—
Underlying Combined Ratio	93.8		%	91.8		%	94.0		%	91.7		%	94.5		%	99.1		%	92.5		%	93.4		%	92.7		%	95.7		%
1 Underlying Combined Ratio is a non-GAAP measure, which is computed as the difference between three operating ratios: the combined ratio, the effect of catastrophes (excluding development of prior-year catastrophes) on the combined ratio and the effect of prior-year reserve development at the reporting date (including development on prior-year catastrophes) on the combined ratio.

Page 14

Kemper Corporation Specialty Property & Casualty Insurance Segment Specialty Personal Automobile Insurance - Results of Operations and Selected Financial Information (Dollars in Millions) (Unaudited)
	Three Months Ended																								Year Ended
	Dec 31, 2019			Sep 30, 2019			Jun 30, 2019			Mar 31, 2019			Dec 31, 2018			Sep 30, 2018			Jun 30, 2018			Mar 31, 2018			Dec 31, 2019			Dec 31, 2018
Results of Operations
Net Premiums Written	$	714.9		$	749.5		$	734.5		$	742.2		$	618.5		$	679.1		$	325.4		$	304.9		$	2,941.1		$	1,927.9
Earned Premiums	$	733.1		$	719.2		$	703.7		$	669.6		$	660.5		$	655.3		$	307.5		$	266.2		$	2,825.6		$	1,889.5
Net Investment Income	24.5			24.9			24.6			18.4			19.1			17.2			8.8			8.4			92.4			53.5
Other Income	0.8			4.3			0.9			0.8			0.7			0.9			0.3			0.3			6.8			2.2
Total Revenues	758.4			748.4			729.2			688.8			680.3			673.4			316.6			274.9			2,924.8			1,945.2
Incurred Losses and LAE related to:
Current Year:
Non-catastrophe Losses and LAE	557.5			538.2			537.0			498.8			492.0			485.6			237.8			202.8			2,131.5			1,418.2
Catastrophe Losses and LAE	3.3			2.0			4.1			0.5			0.7			1.3			1.7			0.2			9.9			3.9
Prior Years:
Non-catastrophe Losses and LAE	(4.4		)	(1.8		)	(3.7		)	(14.4		)	2.4			(1.1		)	4.2			0.2			(24.3		)	5.7
Catastrophe Losses and LAE	0.2			0.2			—			0.1			—			—			—			(0.2		)	0.5			(0.2		)
Total Incurred Losses and LAE	556.6			538.6			537.4			485.0			495.1			485.8			243.7			203.0			2,117.6			1,427.6
Insurance Expenses	138.1			128.4			128.9			114.7			132.5			160.8			46.7			45.2			510.1			385.2
Other Expenses	0.2			1.0			0.7			0.6			0.4			1.6			—			—			2.5			2.0
Operating Profit	63.5			80.4			62.2			88.5			52.3			25.2			26.2			26.7			294.6			130.4
Income Tax Expense	(10.5		)	(18.4		)	(13.0		)	(17.8		)	(10.9		)	(4.8		)	(5.4		)	(5.2		)	(59.7		)	(26.3		)
Total Product Line Net Operating Income	$	53.0		$	62.0		$	49.2		$	70.7		$	41.4		$	20.4		$	20.8		$	21.5		$	234.9		$	104.1
Ratios Based On Earned Premiums
Current Year Non-catastrophe Losses and LAE Ratio	76.0		%	74.9		%	76.3		%	74.5		%	74.5		%	74.1		%	77.3		%	76.2		%	75.4		%	75.1		%
Current Year Catastrophe Losses and LAE Ratio	0.5			0.3			0.6			0.1			0.1			0.2			0.6			0.1			0.4			0.2
Prior Years Non-catastrophe Losses and LAE Ratio	(0.6		)	(0.3		)	(0.5		)	(2.2		)	0.4			(0.2		)	1.4			0.1			(0.9		)	0.3
Prior Years Catastrophe Losses and LAE Ratio	—			—			—			—			—			—			—			(0.1		)	—			—
Total Incurred Loss and LAE Ratio	75.9			74.9			76.4			72.4			75.0			74.1			79.3			76.3			74.9			75.6
Insurance Expense Ratio	18.8			17.9			18.3			17.1			20.1			24.5			15.2			17.0			18.1			20.4
Combined Ratio	94.7		%	92.8		%	94.7		%	89.5		%	95.1		%	98.6		%	94.5		%	93.3		%	93.0		%	96.0		%
Underlying Combined Ratio1
Current Year Non-catastrophe Losses and LAE Ratio	76.0		%	74.9		%	76.3		%	74.5		%	74.5		%	74.1		%	77.3		%	76.2		%	75.4		%	75.1		%
Insurance Expense Ratio	18.8			17.9			18.3			17.1			20.1			24.5			15.2			17.0			18.1			20.4
Underlying Combined Ratio	94.8		%	92.8		%	94.6		%	91.6		%	94.6		%	98.6		%	92.5		%	93.2		%	93.5		%	95.5		%
Non-GAAP Measure Reconciliation
Combined Ratio	94.7		%	92.8		%	94.7		%	89.5		%	95.1		%	98.6		%	94.5		%	93.3		%	93.0		%	96.0		%
Less:
Current Year Catastrophe Losses and LAE Ratio	0.5			0.3			0.6			0.1			0.1			0.2			0.6			0.1			0.4			0.2
Prior Years Non-catastrophe Losses and LAE Ratio	(0.6		)	(0.3		)	(0.5		)	(2.2		)	0.4			(0.2		)	1.4			0.1			(0.9		)	0.3
Prior Years Catastrophe Losses and LAE Ratio	—			—			—			—			—			—			—			(0.1		)	—			—
Underlying Combined Ratio	94.8		%	92.8		%	94.6		%	91.6		%	94.6		%	98.6		%	92.5		%	93.2		%	93.5		%	95.5		%
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.

Page 15

Kemper Corporation Specialty Property & Casualty Insurance Segment Commercial Automobile Insurance - Results of Operations and Selected Financial Information (Dollars in Millions) (Unaudited)
	Three Months Ended																								Year Ended
	Dec 31, 2019			Sep 30, 2019			Jun 30, 2019			Mar 31, 2019			Dec 31, 2018			Sep 30, 2018			Jun 30, 2018			Mar 31, 2018			Dec 31, 2019			Dec 31, 2018
Results of Operations
Net Premiums Written	$	67.6		$	65.5		$	70.2		$	66.9		$	56.2		$	56.3		$	13.5		$	13.5		$	270.2		$	139.5
Earned Premiums	$	66.6		$	64.2		$	62.3		$	59.7		$	57.3		$	55.9		$	12.5		$	12.2		$	252.8		$	137.9
Net Investment Income	3.8			3.9			4.3			3.1			3.5			3.5			1.4			1.5			15.1			9.9
Other Income	—			0.1			0.1			—			0.1			—			0.1			—			0.2			0.2
Total Revenues	70.4			68.2			66.7			62.8			60.9			59.4			14.0			13.7			268.1			148.0
Incurred Losses and LAE related to:
Current Year:
Non-catastrophe Losses and LAE	42.0			41.2			42.2			45.5			38.3			42.0			9.4			9.5			170.9			99.2
Catastrophe Losses and LAE	0.5			0.3			0.3			0.1			0.3			0.1			0.4			—			1.2			0.8
Prior Years:
Non-catastrophe Losses and LAE	0.3			(2.3		)	(4.9		)	(3.9		)	(2.4		)	(0.5		)	(0.1		)	(0.7		)	(10.8		)	(3.7		)
Catastrophe Losses and LAE	—			—			(0.1		)	0.1			—			—			—			(0.1		)	—			(0.1		)
Total Incurred Losses and LAE	42.8			39.2			37.5			41.8			36.2			41.6			9.7			8.7			161.3			96.2
Insurance Expenses	12.6			10.8			12.0			10.1			15.5			16.0			2.3			2.7			45.5			36.5
Other Expenses	—			—			—			—			—			0.1			—			—			—			0.1
Operating Profit	15.0			18.2			17.2			10.9			9.2			1.7			2.0			2.3			61.3			15.2
Income Tax Expense	(5.7		)	(1.7		)	(3.7		)	(2.0		)	(2.1		)	(0.6		)	(0.4		)	(0.4		)	(13.1		)	(3.5		)
Total Product Line Net Operating Income	$	9.3		$	16.5		$	13.5		$	8.9		$	7.1		$	1.1		$	1.6		$	1.9		$	48.2		$	11.7
Ratios Based On Earned Premiums
Current Year Non-catastrophe Losses and LAE Ratio	63.0		%	64.2		%	67.7		%	76.1		%	66.9		%	75.1		%	75.2		%	77.8		%	67.6		%	72.0		%
Current Year Catastrophe Losses and LAE Ratio	0.8			0.5			0.5			0.2			0.5			0.2			3.2			—			0.5			0.6
Prior Years Non-catastrophe Losses and LAE Ratio	0.5			(3.6		)	(7.9		)	(6.5		)	(4.2		)	(0.9		)	(0.8		)	(5.7		)	(4.3		)	(2.7		)
Prior Years Catastrophe Losses and LAE Ratio	—			—			(0.1		)	0.2			—			—			—			(0.8		)	—			(0.1		)
Total Incurred Loss and LAE Ratio	64.3			61.1			60.2			70.0			63.2			74.4			77.6			71.3			63.8			69.8
Insurance Expense Ratio	18.9			16.8			19.3			16.9			27.1			28.6			18.4			22.1			18.0			26.5
Combined Ratio	83.2		%	77.9		%	79.5		%	86.9		%	90.3		%	103.0		%	96.0		%	93.4		%	81.8		%	96.3		%
Underlying Combined Ratio1
Current Year Non-catastrophe Losses and LAE Ratio	63.0		%	64.2		%	67.7		%	76.1		%	66.9		%	75.1		%	75.2		%	77.8		%	67.6		%	72.0		%
Insurance Expense Ratio	18.9			16.8			19.3			16.9			27.1			28.6			18.4			22.1			18.0			26.5
Underlying Combined Ratio	81.9		%	81.0		%	87.0		%	93.0		%	94.0		%	103.7		%	93.6		%	99.9		%	85.6		%	98.5		%
Non-GAAP Measure Reconciliation
Combined Ratio	83.2		%	77.9		%	79.5		%	86.9		%	90.3		%	103.0		%	96.0		%	93.4		%	81.8		%	96.3		%
Less:
Current Year Catastrophe Losses and LAE Ratio	0.8			0.5			0.5			0.2			0.5			0.2			3.2			—			0.5			0.6
Prior Years Non-catastrophe Losses and LAE Ratio	0.5			(3.6		)	(7.9		)	(6.5		)	(4.2		)	(0.9		)	(0.8		)	(5.7		)	(4.3		)	(2.7		)
Prior Years Catastrophe Losses and LAE Ratio	—			—			(0.1		)	0.2			—			—			—			(0.8		)	—			(0.1		)
Underlying Combined Ratio	81.9		%	81.0		%	87.0		%	93.0		%	94.0		%	103.7		%	93.6		%	99.9		%	85.6		%	98.5		%
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.

Page 16

Kemper Corporation Preferred Property & Casualty Insurance Segment Results of Operations and Selected Financial Information (Dollars in Millions) (Unaudited)
	Three Months Ended																								Year Ended
	Dec 31, 2019			Sep 30, 2019			Jun 30, 2019			Mar 31, 2019			Dec 31, 2018			Sep 30, 2018			Jun 30, 2018			Mar 31, 2018			Dec 31, 2019			Dec 31, 2018
Results of Operations
Net Premiums Written	$	172.6		$	189.6		$	197.5		$	179.6		$	184.7		$	195.6		$	198.0		$	170.5		$	739.3		$	748.8
Earned Premiums	$	185.2		$	191.0		$	188.5		$	185.6		$	188.8		$	184.0		$	181.1		$	176.8		$	750.3		$	730.7
Net Investment Income	11.5			12.0			12.3			8.3			14.0			20.1			14.0			13.7			44.1			61.8
Total Revenues	196.7			203.0			200.8			193.9			202.8			204.1			195.1			190.5			794.4			792.5
Incurred Losses and LAE related to:
Current Year:
Non-catastrophe Losses and LAE	120.2			121.7			119.1			120.8			120.8			116.6			107.8			114.2			481.8			459.4
Catastrophe Losses and LAE	11.9			11.9			22.6			16.6			21.4			18.3			40.3			7.3			63.0			87.3
Prior Years:
Non-catastrophe Losses and LAE	(7.1		)	(1.1		)	(4.3		)	(5.1		)	(3.0		)	(1.9		)	0.6			4.2			(17.6		)	(0.1		)
Catastrophe Losses and LAE	(3.1		)	(15.4		)	(0.9		)	1.0			(0.8		)	(0.2		)	(1.8		)	(5.4		)	(18.4		)	(8.2		)
Total Incurred Losses and LAE	121.9			117.1			136.5			133.3			138.4			132.8			146.9			120.3			508.8			538.4
Insurance Expenses	58.7			59.4			57.9			57.3			57.8			57.2			56.9			53.6			233.3			225.5
Operating Profit (Loss)	16.1			26.5			6.4			3.3			6.6			14.1			(8.7		)	16.6			52.3			28.6
Income Tax Benefit (Expense)	(3.3		)	(5.4		)	(1.2		)	(0.5		)	(0.6		)	(1.9		)	2.7			(3.1		)	(10.4		)	(2.9		)
Segment Net Operating Income (Loss)	$	12.8		$	21.1		$	5.2		$	2.8		$	6.0		$	12.2		$	(6.0	)	$	13.5		$	41.9		$	25.7
Ratios Based On Earned Premiums
Current Year Non-catastrophe Losses and LAE Ratio	64.9		%	63.8		%	63.2		%	65.1		%	64.0		%	63.4		%	59.5		%	64.6		%	64.2		%	62.9		%
Current Year Catastrophe Losses and LAE Ratio	6.4			6.2			12.0			8.9			11.3			9.9			22.3			4.1			8.4			11.9
Prior Years Non-catastrophe Losses and LAE Ratio	(3.8		)	(0.6		)	(2.3		)	(2.7		)	(1.6		)	(1.0		)	0.3			2.4			(2.3		)	—
Prior Years Catastrophe Losses and LAE Ratio	(1.7		)	(8.1		)	(0.5		)	0.5			(0.4		)	(0.1		)	(1.0		)	(3.1		)	(2.5		)	(1.1		)
Total Incurred Loss and LAE Ratio	65.8			61.3			72.4			71.8			73.3			72.2			81.1			68.0			67.8			73.7
Insurance Expense Ratio	31.7			31.1			30.7			30.9			30.6			31.1			31.4			30.3			31.1			30.9
Combined Ratio	97.5		%	92.4		%	103.1		%	102.7		%	103.9		%	103.3		%	112.5		%	98.3		%	98.9		%	104.6		%
Underlying Combined Ratio1
Current Year Non-catastrophe Losses and LAE Ratio	64.9		%	63.8		%	63.2		%	65.1		%	64.0		%	63.4		%	59.5		%	64.6		%	64.2		%	62.9		%
Insurance Expense Ratio	31.7			31.1			30.7			30.9			30.6			31.1			31.4			30.3			31.1			30.9
Underlying Combined Ratio	96.6		%	94.9		%	93.9		%	96.0		%	94.6		%	94.5		%	90.9		%	94.9		%	95.3		%	93.8		%
Non-GAAP Measure Reconciliation
Combined Ratio as Reported	97.5		%	92.4		%	103.1		%	102.7		%	103.9		%	103.3		%	112.5		%	98.3		%	98.9		%	104.6		%
Less:
Current Year Catastrophe Losses and LAE Ratio	6.4			6.2			12.0			8.9			11.3			9.9			22.3			4.1			8.4			11.9
Prior Years Non-catastrophe Losses and LAE Ratio	(3.8		)	(0.6		)	(2.3		)	(2.7		)	(1.6		)	(1.0		)	0.3			2.4			(2.3		)	—
Prior Years Catastrophe Losses and LAE Ratio	(1.7		)	(8.1		)	(0.5		)	0.5			(0.4		)	(0.1		)	(1.0		)	(3.1		)	(2.5		)	(1.1		)
Underlying Combined Ratio	96.6		%	94.9		%	93.9		%	96.0		%	94.6		%	94.5		%	90.9		%	94.9		%	95.3		%	93.8		%
1 Underlying Combined Ratio is a non-GAAP measure, which is computed as the difference between three operating ratios: the combined ratio, the effect of catastrophes (excluding development of prior-year catastrophes) on the combined ratio and the effect of prior-year reserve development at the reporting date (including development on prior-year catastrophes) on the combined ratio.

Page 17

Kemper Corporation Preferred Property & Casualty Insurance Segment Results of Operations and Selected Financial Information (continued) (Dollars in Millions) (Unaudited)
	Dec 31, 2019		Sep 30, 2019		Jun 30, 2019		Mar 31, 2019		Dec 31, 2018		Sep 30, 2018		Jun 30, 2018		Mar 31, 2018
Insurance Reserves:
Preferred Automobile	$	262.3	$	267.3	$	264.5	$	268.0	$	270.0	$	272.3	$	276.3	$	278.8
Homeowners	95.3		108.8		131.6		133.5		147.9		139.4		137.2		124.6
Other Personal	30.9		32.2		34.0		34.3		35.0		32.6		34.8		35.3
Insurance Reserves	$	388.5	$	408.3	$	430.1	$	435.8	$	452.9	$	444.3	$	448.3	$	438.7
Insurance Reserves:
Loss and Allocated LAE Reserves:
Case and Allocated LAE	$	264.1	$	277.8	$	278.5	$	290.2	$	312.5	$	304.4	$	307.7	$	313.6
Incurred but Not Reported	96.0		100.4		120.2		113.0		110.0		109.0		109.6		95.5
Total Loss Reserves	360.1		378.2		398.7		403.2		422.5		413.4		417.3		409.1
Unallocated LAE Reserves	28.4		30.1		31.4		32.6		30.4		30.9		31.0		29.6
Insurance Reserves	$	388.5	$	408.3	$	430.1	$	435.8	$	452.9	$	444.3	$	448.3	$	438.7

Page 18

Kemper Corporation Preferred Property & Casualty Insurance Segment Preferred Personal Automobile Insurance - Results of Operations and Selected Financial Information (Dollars in Millions) (Unaudited)
	Three Months Ended																								Year Ended
	Dec 31 2019			Sep 30, 2019			Jun 30, 2019			Mar 31, 2019			Dec 31, 2018			Sep 30, 2018			Jun 30, 2018			Mar 31, 2018			Dec 31, 2019			Dec 31, 2018
Results of Operations
Net Premiums Written	$	111.5		$	117.5		$	123.4		$	116.5		$	115.7		$	119.3		$	120.9		$	106.2		$	468.9		$	462.1
Earned Premiums	$	117.2		$	119.7		$	117.9		$	115.4		$	115.2		$	111.4		$	108.7		$	104.9		$	470.2		$	440.2
Net Investment Income	5.4			5.6			5.8			3.9			6.5			9.3			6.5			6.3			20.7			28.6
Total Revenues	122.6			125.3			123.7			119.3			121.7			120.7			115.2			111.2			490.9			468.8
Incurred Losses and LAE related to:
Current Year:
Non-catastrophe Losses and LAE	86.2			83.2			82.9			80.2			85.6			74.9			74.7			73.6			332.5			308.8
Catastrophe Losses and LAE	1.5			2.1			1.7			2.5			0.4			2.3			3.9			0.6			7.8			7.2
Prior Years:
Non-catastrophe Losses and LAE	(2.8		)	(0.5		)	(3.7		)	(1.2		)	(2.2		)	(2.6		)	(1.4		)	0.5			(8.2		)	(5.7		)
Catastrophe Losses and LAE	0.2			(0.1		)	—			(0.1		)	—			—			(0.1		)	—			—			(0.1		)
Total Incurred Losses and LAE	85.1			84.7			80.9			81.4			83.8			74.6			77.1			74.7			332.1			310.2
Insurance Expenses	36.3			36.8			35.5			35.0			34.9			34.0			32.1			31.7			143.6			132.7
Operating Profit	1.2			3.8			7.3			2.9			3.0			12.1			6.0			4.8			15.2			25.9
Income Tax Expense	(0.2		)	(0.7		)	(1.5		)	(0.5		)	(0.3		)	(2.0		)	(1.0		)	(0.8		)	(2.9		)	(4.1		)
Total Product Line Net Operating Income (Loss)	$	1.0		$	3.1		$	5.8		$	2.4		$	2.7		$	10.1		$	5.0		$	4.0		$	12.3		$	21.8
Ratios Based On Earned Premiums
Current Year Non-catastrophe Losses and LAE Ratio	73.5		%	69.5		%	70.3		%	69.4		%	74.3		%	67.2		%	68.7		%	70.1		%	70.6		%	70.2		%
Current Year Catastrophe Losses and LAE Ratio	1.3			1.8			1.4			2.2			0.3			2.1			3.6			0.6			1.7			1.6
Prior Years Non-catastrophe Losses and LAE Ratio	(2.4		)	(0.4		)	(3.1		)	(1.0		)	(1.9		)	(2.3		)	(1.3		)	0.5			(1.7		)	(1.3		)
Prior Years Catastrophe Losses and LAE Ratio	0.2			(0.1		)	—			(0.1		)	—			—			(0.1		)	—			—			—
Total Incurred Loss and LAE Ratio	72.6			70.8			68.6			70.5			72.7			67.0			70.9			71.2			70.6			70.5
Insurance Expense Ratio	31.0			30.7			30.1			30.3			30.3			30.5			29.5			30.2			30.5			30.1
Combined Ratio	103.6		%	101.5		%	98.7		%	100.8		%	103.0		%	97.5		%	100.4		%	101.4		%	101.1		%	100.6		%
Underlying Combined Ratio1
Current Year Non-catastrophe Losses and LAE Ratio	73.5		%	69.5		%	70.3		%	69.4		%	74.3		%	67.2		%	68.7		%	70.1		%	70.6		%	70.2		%
Insurance Expense Ratio	31.0			30.7			30.1			30.3			30.3			30.5			29.5			30.2			30.5			30.1
Underlying Combined Ratio	104.5		%	100.2		%	100.4		%	99.7		%	104.6		%	97.7		%	98.2		%	100.3		%	101.1		%	100.3		%
Non-GAAP Measure Reconciliation
Combined Ratio	103.6		%	101.5		%	98.7		%	100.8		%	103.0		%	97.5		%	100.4		%	101.4		%	101.1		%	100.6		%
Less:
Current Year Catastrophe Losses and LAE Ratio	1.3			1.8			1.4			2.2			0.3			2.1			3.6			0.6			1.7			1.6
Prior Years Non-catastrophe Losses and LAE Ratio	(2.4		)	(0.4		)	(3.1		)	(1.0		)	(1.9		)	(2.3		)	(1.3		)	0.5			(1.7		)	(1.3		)
Prior Years Catastrophe Losses and LAE Ratio	0.2			(0.1		)	—			(0.1		)	—			—			(0.1		)	—			—			—
Underlying Combined Ratio	104.5		%	100.2		%	100.4		%	99.7		%	104.6		%	97.7		%	98.2		%	100.3		%	101.1		%	100.3		%
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.

Page 19

Kemper Corporation Preferred Property & Casualty Insurance Segment Homeowners and Other Personal Insurance - Results of Operations and Selected Financial Information (Dollars in Millions) (Unaudited)
	Three Months Ended																								Year Ended
	Dec 31, 2019			Sep 30, 2019			Jun 30, 2019			Mar 31, 2019			Dec 31, 2018			Sep 30, 2018			Jun 30, 2018			Mar 31, 2018			Dec 31, 2019			Dec 31, 2018
Results of Operations
Net Premiums Written	$	61.1		$	72.1		$	74.1		$	63.1		$	69.0		$	76.3		$	77.1		$	64.3		$	270.4		$	286.7
Earned Premiums	$	68.0		$	71.3		$	70.6		$	70.2		$	73.6		$	72.6		$	72.4		$	71.9		$	280.1		$	290.5
Net Investment Income	6.1			6.4			6.5			4.4			7.5			10.8			7.5			7.4			23.4			33.2
Total Revenues	74.1			77.7			77.1			74.6			81.1			83.4			79.9			79.3			303.5			323.7
Incurred Losses and LAE related to:
Current Year:
Non-catastrophe Losses and LAE	34.0			38.5			36.2			40.6			35.2			41.7			33.1			40.6			149.3			150.6
Catastrophe Losses and LAE	10.4			9.8			20.9			14.1			21.0			16.0			36.4			6.7			55.2			80.1
Prior Years:
Non-catastrophe Losses and LAE	(4.3		)	(0.6		)	(0.6		)	(3.9		)	(0.8		)	0.7			2.0			3.7			(9.4		)	5.6
Catastrophe Losses and LAE	(3.3		)	(15.3		)	(0.9		)	1.1			(0.8		)	(0.2		)	(1.7		)	(5.4		)	(18.4		)	(8.1		)
Total Incurred Losses and LAE	36.8			32.4			55.6			51.9			54.6			58.2			69.8			45.6			176.7			228.2
Insurance Expenses	22.4			22.6			22.4			22.3			22.9			23.2			24.8			21.9			89.7			92.8
Operating Profit (Loss)	14.9			22.7			(0.9		)	0.4			3.6			2.0			(14.7		)	11.8			37.1			2.7
Income Tax Benefit (Expense)	(3.1		)	(4.7		)	0.3			—			(0.3		)	0.1			3.7			(2.3		)	(7.5		)	1.2
Total Product Line Net Operating Income (Loss)	$	11.8		$	18.0		$	(0.6	)	$	0.4		$	3.3		$	2.1		$	(11.0	)	$	9.5		$	29.6		$	3.9
Ratios Based On Earned Premiums
Current Year Non-catastrophe Losses and LAE Ratio	50.0		%	54.0		%	51.3		%	57.8		%	47.9		%	57.5		%	45.6		%	56.5		%	53.4		%	51.9		%
Current Year Catastrophe Losses and LAE Ratio	15.3			13.7			29.6			20.1			28.5			22.0			50.3			9.3			19.7			27.6
Prior Years Non-catastrophe Losses and LAE Ratio	(6.3		)	(0.8		)	(0.8		)	(5.6		)	(1.1		)	1.0			2.8			5.1			(3.4		)	1.9
Prior Years Catastrophe Losses and LAE Ratio	(4.9		)	(21.5		)	(1.3		)	1.6			(1.1		)	(0.3		)	(2.3		)	(7.5		)	(6.6		)	(2.8		)
Total Incurred Loss and LAE Ratio	54.1			45.4			78.8			73.9			74.2			80.2			96.4			63.4			63.1			78.6
Insurance Expense Ratio	32.9			31.7			31.7			31.8			31.1			32.0			34.3			30.5			32.0			31.9
Combined Ratio	87.0		%	77.1		%	110.5		%	105.7		%	105.3		%	112.2		%	130.7		%	93.9		%	95.1		%	110.5		%
Underlying Combined Ratio1
Current Year Non-catastrophe Losses and LAE Ratio	50.0		%	54.0		%	51.3		%	57.8		%	47.9		%	57.5		%	45.6		%	56.5		%	53.4		%	51.9		%
Insurance Expense Ratio	32.9			31.7			31.7			31.8			31.1			32.0			34.3			30.5			32.0			31.9
Underlying Combined Ratio	82.9		%	85.7		%	83.0		%	89.6		%	79.0		%	89.5		%	79.9		%	87.0		%	85.4		%	83.8		%
Non-GAAP Measure Reconciliation
Combined Ratio	87.0		%	77.1		%	110.5		%	105.7		%	105.3		%	112.2		%	130.7		%	93.9		%	95.1		%	110.5		%
Less:
Current Year Catastrophe Losses and LAE Ratio	15.3			13.7			29.6			20.1			28.5			22.0			50.3			9.3			19.7			27.6
Prior Years Non-catastrophe Losses and LAE Ratio	(6.3		)	(0.8		)	(0.8		)	(5.6		)	(1.1		)	1.0			2.8			5.1			(3.4		)	1.9
Prior Years Catastrophe Losses and LAE Ratio	(4.9		)	(21.5		)	(1.3		)	1.6			(1.1		)	(0.3		)	(2.3		)	(7.5		)	(6.6		)	(2.8		)
Underlying Combined Ratio	82.9		%	85.7		%	83.0		%	89.6		%	79.0		%	89.5		%	79.9		%	87.0		%	85.4		%	83.8		%
1Underlying Combined Ratio is a non-GAAP measure, which is computed as the difference between three operating ratios: the combined ratio, the effect of catastrophes (excluding development of prior-year catastrophes) on the combined ratio and the effect of prior-year reserve development at the reporting date (including development on prior-year catastrophes) on the combined ratio.

Page 20

Kemper Corporation Preferred Property & Casualty Insurance Segment Homeowners Insurance - Results of Operations and Selected Financial Information (Dollars in Millions) (Unaudited)
	Three Months Ended																								Year Ended
	Dec 31, 2019			Sep 30, 2019			Jun 30, 2019			Mar 31, 2019			Dec 31, 2018			Sep 30, 2018			Jun 30, 2018			Mar 31, 2018			Dec 31, 2019			Dec 31, 2018
Results of Operations
Net Premiums Written	$	52.5		$	62.3		$	64.2		$	54.1		$	59.6		$	66.0		$	66.6		$	55.1		$	233.1		$	247.3
Earned Premiums	$	58.7		$	61.5		$	60.8		$	60.3		$	63.6		$	62.5		$	62.2		$	61.8		$	241.3		$	250.1
Net Investment Income	5.2			5.5			5.6			3.8			6.7			9.3			6.5			6.3			20.1			28.8
Total Revenues	63.9			67.0			66.4			64.1			70.3			71.8			68.7			68.1			261.4			278.9
Incurred Losses and LAE related to:
Current Year:
Non-catastrophe Losses and LAE	30.0			34.2			31.6			35.8			30.7			36.8			28.8			35.2			131.6			131.5
Catastrophe Losses and LAE	10.3			9.3			20.6			13.8			16.8			16.0			35.9			6.5			54.0			75.2
Prior Years:
Non-catastrophe Losses and LAE	(2.7		)	0.2			0.9			(1.1		)	0.3			1.8			2.7			5.6			(2.7		)	10.4
Catastrophe Losses and LAE	(3.4		)	(13.6		)	(1.0		)	1.0			(0.7		)	(0.1		)	(1.3		)	(5.1		)	(17.0		)	(7.2		)
Total Incurred Losses and LAE	34.2			30.1			52.1			49.5			47.1			54.5			66.1			42.2			165.9			209.9
Insurance Expenses	19.6			19.8			19.7			19.6			20.0			20.5			21.9			19.2			78.7			81.6
Operating Profit (Loss)	10.1			17.1			(5.4		)	(5.0		)	3.2			(3.2		)	(19.3		)	6.7			16.8			(12.6		)
Income Tax Benefit (Expense)	(2.1		)	(3.5		)	1.2			1.1			(0.3		)	1.4			4.4			(1.3		)	(3.3		)	4.2
Total Product Line Net Operating Income (Loss)	$	8.0		$	13.6		$	(4.2	)	$	(3.9	)	$	2.9		$	(1.8	)	$	(14.9	)	$	5.4		$	13.5		$	(8.4	)
Ratios Based On Earned Premiums
Current Year Non-catastrophe Losses and LAE Ratio	51.2		%	55.6		%	51.9		%	59.3		%	48.3		%	58.9		%	46.4		%	57.0		%	54.5		%	52.5		%
Current Year Catastrophe Losses and LAE Ratio	17.5			15.1			33.9			22.9			26.4			25.6			57.7			10.5			22.4			30.1
Prior Years Non-catastrophe Losses and LAE Ratio	(4.6		)	0.3			1.5			(1.8		)	0.5			2.9			4.3			9.1			(1.1		)	4.2
Prior Years Catastrophe Losses and LAE Ratio	(5.8		)	(22.1		)	(1.6		)	1.7			(1.1		)	(0.2		)	(2.1		)	(8.3		)	(7.0		)	(2.9		)
Total Incurred Loss and LAE Ratio	58.3			48.9			85.7			82.1			74.1			87.2			106.3			68.3			68.8			83.9
Insurance Expense Ratio	33.4			32.2			32.4			32.5			31.4			32.8			35.2			31.1			32.6			32.6
Combined Ratio	91.7		%	81.1		%	118.1		%	114.6		%	105.5		%	120.0		%	141.5		%	99.4		%	101.4		%	116.5		%
Underlying Combined Ratio1
Current Year Non-catastrophe Losses and LAE Ratio	51.2		%	55.6		%	51.9		%	59.3		%	48.3		%	58.9		%	46.4		%	57.0		%	54.5		%	52.5		%
Insurance Expense Ratio	33.4			32.2			32.4			32.5			31.4			32.8			35.2			31.1			32.6			32.6
Underlying Combined Ratio	84.6		%	87.8		%	84.3		%	91.8		%	79.7		%	91.7		%	81.6		%	88.1		%	87.1		%	85.1		%
Non-GAAP Measure Reconciliation
Combined Ratio	91.7		%	81.1		%	118.1		%	114.6		%	105.5		%	120.0		%	141.5		%	99.4		%	101.4		%	116.5		%
Less:
Current Year Catastrophe Losses and LAE Ratio	17.5			15.1			33.9			22.9			26.4			25.6			57.7			10.5			22.4			30.1
Prior Years Non-catastrophe Losses and LAE Ratio	(4.6		)	0.3			1.5			(1.8		)	0.5			2.9			4.3			9.1			(1.1		)	4.2
Prior Years Catastrophe Losses and LAE Ratio	(5.8		)	(22.1		)	(1.6		)	1.7			(1.1		)	(0.2		)	(2.1		)	(8.3		)	(7.0		)	(2.9		)
Underlying Combined Ratio	84.6		%	87.8		%	84.3		%	91.8		%	79.7		%	91.7		%	81.6		%	88.1		%	87.1		%	85.1		%
1 Underlying Combined Ratio is a non-GAAP measure, which is computed as the difference between three operating ratios: the combined ratio, the effect of catastrophes (excluding development of prior-year catastrophes) on the combined ratio and the effect of prior-year reserve development at the reporting date (including development on prior-year catastrophes) on the combined ratio.

Page 21

Kemper Corporation Preferred Property & Casualty Insurance Segment Other Personal Insurance - Results of Operations and Selected Financial Information (Dollars in Millions) (Unaudited)
	Three Months Ended																								Year Ended
	Dec 31, 2019			Sep 30, 2019			Jun 30, 2019			Mar 31, 2019			Dec 31, 2018			Sep 30, 2018			Jun 30, 2018			Mar 31, 2018			Dec 31, 2019			Dec 31, 2018
Results of Operations
Net Premiums Written	$	8.6		$	9.8		$	9.9		$	9.0		$	9.4		$	10.3		$	10.5		$	9.2		$	37.3		$	39.4
Earned Premiums	$	9.3		$	9.8		$	9.8		$	9.9		$	10.0		$	10.1		$	10.2		$	10.1		$	38.8		$	40.4
Net Investment Income	0.9			0.9			0.9			0.6			0.8			1.5			1.0			1.1			3.3			4.4
Total Revenues	10.2			10.7			10.7			10.5			10.8			11.6			11.2			11.2			42.1			44.8
Incurred Losses and LAE related to:
Current Year:
Non-catastrophe Losses and LAE	4.0			4.3			4.6			4.8			4.5			4.9			4.3			5.4			17.7			19.1
Catastrophe Losses and LAE	0.1			0.5			0.3			0.3			4.2			—			0.5			0.2			1.2			4.9
Prior Years:
Non-catastrophe Losses and LAE	(1.6		)	(0.8		)	(1.5		)	(2.8		)	(1.1		)	(1.1		)	(0.7		)	(1.9		)	(6.7		)	(4.8		)
Catastrophe Losses and LAE	0.1			(1.7		)	0.1			0.1			(0.1		)	(0.1		)	(0.4		)	(0.3		)	(1.4		)	(0.9		)
Total Incurred Losses and LAE	2.6			2.3			3.5			2.4			7.5			3.7			3.7			3.4			10.8			18.3
Insurance Expenses	2.8			2.8			2.7			2.7			2.9			2.7			2.9			2.7			11.0			11.2
Operating Profit	4.8			5.6			4.5			5.4			0.4			5.2			4.6			5.1			20.3			15.3
Income Tax Expense	(1.0		)	(1.2		)	(0.9		)	(1.1		)	—			(1.3		)	(0.7		)	(1.0		)	(4.2		)	(3.0		)
Total Product Line Net Operating Income	$	3.8		$	4.4		$	3.6		$	4.3		$	0.4		$	3.9		$	3.9		$	4.1		$	16.1		$	12.3
Ratios Based On Earned Premiums
Current Year Non-catastrophe Losses and LAE Ratio	43.0		%	43.9		%	46.9		%	48.5		%	45.0		%	48.5		%	42.2		%	53.5		%	45.6		%	47.3		%
Current Year Catastrophe Losses and LAE Ratio	1.1			5.1			3.1			3.0			42.0			—			4.9			2.0			3.1			12.1
Prior Years Non-catastrophe Losses and LAE Ratio	(17.2		)	(8.2		)	(15.3		)	(28.3		)	(11.0		)	(10.9		)	(6.9		)	(18.8		)	(17.3		)	(11.9		)
Prior Years Catastrophe Losses and LAE Ratio	1.1			(17.3		)	1.0			1.0			(1.0		)	(1.0		)	(3.9		)	(3.0		)	(3.6		)	(2.2		)
Total Incurred Loss and LAE Ratio	28.0			23.5			35.7			24.2			75.0			36.6			36.3			33.7			27.8			45.3
Insurance Expense Ratio	30.1			28.6			27.6			27.3			29.0			26.7			28.4			26.7			28.4			27.7
Combined Ratio	58.1		%	52.1		%	63.3		%	51.5		%	104.0		%	63.3		%	64.7		%	60.4		%	56.2		%	73.0		%
Underlying Combined Ratio1
Current Year Non-catastrophe Losses and LAE Ratio	43.0		%	43.9		%	46.9		%	48.5		%	45.0		%	48.5		%	42.2		%	53.5		%	45.6		%	47.3		%
Insurance Expense Ratio	30.1			28.6			27.6			27.3			29.0			26.7			28.4			26.7			28.4			27.7
Underlying Combined Ratio	73.1		%	72.5		%	74.5		%	75.8		%	74.0		%	75.2		%	70.6		%	80.2		%	74.0		%	75.0		%
Non-GAAP Measure Reconciliation
Combined Ratio	58.1		%	52.1		%	63.3		%	51.5		%	104.0		%	63.3		%	64.7		%	60.4		%	56.2		%	73.0		%
Less:
Current Year Catastrophe Losses and LAE Ratio	1.1			5.1			3.1			3.0			42.0			—			4.9			2.0			3.1			12.1
Prior Years Non-catastrophe Losses and LAE Ratio	(17.2		)	(8.2		)	(15.3		)	(28.3		)	(11.0		)	(10.9		)	(6.9		)	(18.8		)	(17.3		)	(11.9		)
Prior Years Catastrophe Losses and LAE Ratio	1.1			(17.3		)	1.0			1.0			(1.0		)	(1.0		)	(3.9		)	(3.0		)	(3.6		)	(2.2		)
Underlying Combined Ratio	73.1		%	72.5		%	74.5		%	75.8		%	74.0		%	75.2		%	70.6		%	80.2		%	74.0		%	75.0		%
1 Underlying Combined Ratio is a non-GAAP measure, which is computed as the difference between three operating ratios: the combined ratio, the effect of catastrophes (excluding development of prior-year catastrophes) on the combined ratio and the effect of prior-year reserve development at the reporting date (including development on prior-year catastrophes) on the combined ratio.

Page 22

Kemper Corporation Life & Health Insurance Segment Results of Operations and Selected Financial Information (Dollars in Millions) (Unaudited)
	Three Months Ended																								Year Ended
	Dec 31, 2019			Sep 30, 2019			Jun 30, 2019			Mar 31, 2019			Dec 31, 2018			Sep 30, 2018			Jun 30, 2018			Mar 31, 2018			Dec 31, 2019			Dec 31, 2018
Results of Operations
Earned Premiums	$	160.9		$	160.8		$	162.1		$	159.9		$	157.0		$	157.7		$	157.0		$	154.6		$	643.7		$	626.3
Net Investment Income	52.0			49.7			53.0			51.7			51.7			51.0			54.5			53.7			206.4			210.9
Other Income	2.9			2.9			1.6			1.1			1.1			1.2			0.9			0.8			8.5			4.0
Total Revenues	215.8			213.4			216.7			212.7			209.8			209.9			212.4			209.1			858.6			841.2
Policyholders’ Benefits and Incurred Losses and LAE	95.0			88.8			113.5			105.4			103.1			97.0			99.2			104.9			402.7			404.2
Insurance Expenses	85.3			83.6			87.1			78.0			88.4			79.4			79.4			73.9			334.0			321.1
Operating Profit	35.5			41.0			16.1			29.3			18.3			33.5			33.8			30.3			121.9			115.9
Income Tax Expense	(6.6		)	(7.6		)	(2.8		)	(6.2		)	(4.7		)	(6.4		)	(7.1		)	(6.2		)	(23.2		)	(24.4		)
Segment Net Operating Income	$	28.9		$	33.4		$	13.3		$	23.1		$	13.6		$	27.1		$	26.7		$	24.1		$	98.7		$	91.5

	Dec 31, 2019		Sep 30, 2019		Jun 30, 2019		Mar 31, 2019		Dec 31, 2018		Sep 30, 2018		Jun 30, 2018		Mar 31, 2018
Insurance Reserves:
Future Policyholder Benefits	$	3,385.3	$	3,374.6	$	3,362.6	$	3,346.1	$	3,333.6	$	3,322.3	$	3,313.0	$	3,299.9
Incurred Losses and LAE Reserves:
Life	89.2		97.0		121.4		127.0		130.5		134.3		137.7		142.4
Accident and Health	27.5		28.1		30.2		28.6		27.8		27.7		26.0		25.2
Property	3.3		3.5		4.2		3.6		4.4		4.5		3.8		4.1
Total Incurred Losses and LAE Reserves	120.0		128.6		155.8		159.2		162.7		166.5		167.5		171.7
Insurance Reserves	$	3,505.3	$	3,503.2	$	3,518.4	$	3,505.3	$	3,496.3	$	3,488.8	$	3,480.5	$	3,471.6

Page 23

Kemper Corporation Life & Health Insurance Segment Life Insurance - Results of Operations and Selected Financial Information (Dollars in Millions) (Unaudited)
	Three Months Ended																								Year Ended
	Dec 31, 2019			Sep 30, 2019			Jun 30, 2019			Mar 31, 2019			Dec 31, 2018			Sep 30, 2018			Jun 30, 2018			Mar 31, 2018			Dec 31, 2019			Dec 31, 2018
Results of Operations
Earned Premiums	$	95.6		$	96.2		$	97.0		$	95.8		$	94.1		$	95.2		$	95.4		$	93.7		$	384.6		$	378.4
Net Investment Income	50.1			47.8			51.0			49.9			49.6			48.9			52.4			51.7			198.8			202.6
Other Income	2.7			2.8			1.6			1.0			1.0			0.9			0.9			0.7			8.1			3.5
Total Revenues	148.4			146.8			149.6			146.7			144.7			145.0			148.7			146.1			591.5			584.5
Policyholders’ Benefits and Incurred Losses and LAE	65.4			56.0			75.9			72.8			69.9			66.7			69.4			73.4			270.1			279.4
Insurance Expenses	55.4			53.3			56.7			49.9			57.3			51.8			51.2			47.4			215.3			207.7
Operating Profit	27.6			37.5			17.0			24.0			17.5			26.5			28.1			25.3			106.1			97.4
Income Tax Expense	(4.9		)	(7.0		)	(3.0		)	(5.1		)	(5.1		)	(4.5		)	(6.0		)	(5.1		)	(20.0		)	(20.7		)
Total Product Line Operating Income	$	22.7		$	30.5		$	14.0		$	18.9		$	12.4		$	22.0		$	22.1		$	20.2		$	86.1		$	76.7

Kemper Corporation Life & Health Insurance Segment Accident & Health Insurance - Results of Operations and Selected Financial Information (Dollars in Millions) (Unaudited)
	Three Months Ended																								Year Ended
	Dec 31, 2019			Sep 30, 2019			Jun 30, 2019			Mar 31, 2019			Dec 31, 2018			Sep 30, 2018			Jun 30, 2018			Mar 31, 2018			Dec 31, 2019			Dec 31, 2018
Results of Operations
Earned Premiums	$	48.5		$	47.6		$	47.9		$	46.9		$	45.5		$	44.9		$	43.8		$	43.3		$	190.9		$	177.5
Net Investment Income	1.5			1.5			1.5			1.5			1.5			1.5			1.6			1.5			6.0			6.1
Other Income	0.2			0.1			—			0.1			0.1			0.3			—			0.1			0.4			0.5
Total Revenues	50.2			49.2			49.4			48.5			47.1			46.7			45.4			44.9			197.3			184.1
Policyholders’ Benefits and Incurred Losses and LAE	25.3			27.6			30.6			26.3			26.1			23.5			24.1			25.2			109.8			98.9
Insurance Expenses	22.8			22.7			22.4			20.8			23.3			19.7			19.7			19.5			88.7			82.2
Operating Profit (Loss)	2.1			(1.1		)	(3.6		)	1.4			(2.3		)	3.5			1.6			0.2			(1.2		)	3.0
Income Tax Benefit (Expense)	(0.5		)	0.3			0.8			(0.3		)	0.8			(1.0		)	(0.3		)	(0.1		)	0.3			(0.6		)
Total Product Line Net Operating Income (Loss)	$	1.6		$	(0.8	)	$	(2.8	)	$	1.1		$	(1.5	)	$	2.5		$	1.3		$	0.1		$	(0.9	)	$	2.4

Page 24

Kemper Corporation Life & Health Insurance Segment Property Insurance - Results of Operations and Selected Financial Information (Dollars in Millions) (Unaudited)
	Three Months Ended																								Year Ended
	Dec 31, 2019			Sep 30, 2019			Jun 30, 2019			Mar 31, 2019			Dec 31, 2018			Sep 30, 2018			Jun 30, 2018			Mar 31, 2018			Dec 31, 2019			Dec 31, 2018
Results of Operations
Earned Premiums	$	16.8		$	17.0		$	17.2		$	17.2		$	17.4		$	17.6		$	17.8		$	17.6		$	68.2		$	70.4
Net Investment Income	0.4			0.4			0.5			0.3			0.6			0.6			0.5			0.5			1.6			2.2
Total Revenues	17.2			17.4			17.7			17.5			18.0			18.2			18.3			18.1			69.8			72.6
Incurred Losses and LAE related to:
Current Year:
Non-catastrophe Losses and LAE	3.8			4.5			4.7			5.1			5.0			5.9			4.5			5.1			18.1			20.5
Catastrophe Losses and LAE	0.5			0.5			1.8			0.3			2.3			0.4			1.1			0.2			3.1			4.0
Prior Years:
Non-catastrophe Losses and LAE	(0.1		)	0.1			0.2			0.6			(0.3		)	0.6			0.1			0.9			0.8			1.3
Catastrophe Losses and LAE	0.1			0.1			0.3			0.3			0.1			(0.1		)	—			0.1			0.8			0.1
Total Incurred Losses and LAE	4.3			5.2			7.0			6.3			7.1			6.8			5.7			6.3			22.8			25.9
Insurance Expenses	7.1			7.6			8.0			7.3			7.8			7.9			8.5			7.0			30.0			31.2
Operating Profit	5.8			4.6			2.7			3.9			3.1			3.5			4.1			4.8			17.0			15.5
Income Tax Expense	(1.2		)	(0.9		)	(0.6		)	(0.8		)	(0.4		)	(0.9		)	(0.8		)	(1.0		)	(3.5		)	(3.1		)
Total Product Line Net Operating Income	$	4.6		$	3.7		$	2.1		$	3.1		$	2.7		$	2.6		$	3.3		$	3.8		$	13.5		$	12.4
Ratios Based On Earned Premiums
Current Year Non-catastrophe Losses and LAE Ratio	22.6		%	26.5		%	27.3		%	29.7		%	28.7		%	33.5		%	25.2		%	29.0		%	26.5		%	29.2		%
Current Year Catastrophe Losses and LAE Ratio	3.0			2.9			10.5			1.7			13.2			2.3			6.2			1.1			4.5			5.7
Prior Years Non-catastrophe Losses and LAE Ratio	(0.6		)	0.6			1.2			3.5			(1.7		)	3.4			0.6			5.1			1.2			1.8
Prior Years Catastrophe Losses and LAE Ratio	0.6			0.6			1.7			1.7			0.6			(0.6		)	—			0.6			1.2			0.1
Total Incurred Loss and LAE Ratio	25.6			30.6			40.7			36.6			40.8			38.6			32.0			35.8			33.4			36.8
Insurance Expense Ratio	42.3			44.7			46.5			42.4			44.8			44.9			47.8			39.8			44.0			44.3
Combined Ratio	67.9		%	75.3		%	87.2		%	79.0		%	85.6		%	83.5		%	79.8		%	75.6		%	77.4		%	81.1		%
Underlying Combined Ratio1
Current Year Non-catastrophe Losses and LAE Ratio	22.6		%	26.5		%	27.3		%	29.7		%	28.7		%	33.5		%	25.2		%	29.0		%	26.5		%	29.2		%
Insurance Expense Ratio	42.3			44.7			46.5			42.4			44.8			44.9			47.8			39.8			44.0			44.3
Underlying Combined Ratio	64.9		%	71.2		%	73.8		%	72.1		%	73.5		%	78.4		%	73.0		%	68.8		%	70.5		%	73.5		%
Non-GAAP Measure Reconciliation
Combined Ratio	67.9		%	75.3		%	87.2		%	79.0		%	85.6		%	83.5		%	79.8		%	75.6		%	77.4		%	81.1		%
Less:
Current Year Catastrophe Losses and LAE Ratio	3.0			2.9			10.5			1.7			13.2			2.3			6.2			1.1			4.5			5.7
Prior Years Non-catastrophe Losses and LAE Ratio	(0.6		)	0.6			1.2			3.5			(1.7		)	3.4			0.6			5.1			1.2			1.8
Prior Years Catastrophe Losses and LAE Ratio	0.6			0.6			1.7			1.7			0.6			(0.6		)	—			0.6			1.2			0.1
Underlying Combined Ratio	64.9		%	71.2		%	73.8		%	72.1		%	73.5		%	78.4		%	73.0		%	68.8		%	70.5		%	73.5		%
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.

Page 25

Kemper Corporation Insurance Expenses and Interest and Other Expenses (Dollars in Millions)
	Three Months Ended																								Year Ended
	Dec 31, 2019			Sep 30, 2019			Jun 30, 2019			Mar 31, 2019			Dec 31, 2018			Sep 30, 2018			Jun 30, 2018			Mar 31, 2018			Dec 31, 2019			Dec 31, 2018
Insurance Expenses:
Commissions	$	172.7		$	178.3		$	183.8		$	174.0		$	158.7		$	166.6		$	123.1		$	110.3		$	708.8		$	558.7
General Expenses	70.4			68.9			75.8			62.9			74.9			67.0			43.9			46.1			278.0			231.9
Premium Taxes	22.0			22.7			24.1			24.7			19.3			22.5			15.1			14.1			93.5			71.0
Total Costs Incurred	265.1			269.9			283.7			261.6			252.9			256.1			182.1			170.5			1,080.3			861.6
Policy Acquisition Costs:
Deferred	(105.6		)	(119.9		)	(120.9		)	(128.8		)	(122.8		)	(156.1		)	(106.1		)	(96.5		)	(475.2		)	(481.5		)
Amortized	104.6			104.7			99.2			99.8			99.4			98.2			93.7			85.8			408.3			377.1
Net Policy Acquisition Costs Deferred	(1.0		)	(15.2		)	(21.7		)	(29.0		)	(23.4		)	(57.9		)	(12.4		)	(10.7		)	(66.9		)	(104.4		)
Amortization of Valuation of Business Acquired ("VOBA")	1.3			1.3			1.5			2.2			43.7			97.8			1.5			0.3			6.3			143.3
Insurance Expenses	265.4			256.0			263.5			234.8			273.2			296.0			171.2			160.1			1,019.7			900.5
Interest and Other Expenses:
Loss from Early Extinguishment of Debt	—			5.8			—			—			—			—			—			—			5.8			—
Interest Expense	10.0			9.2			11.8			11.5			14.1			13.4			8.0			7.9			42.5			43.4
Other Expenses:
Loss (Gain) on Cash Flow Hedge	—			—			—			—			—			(0.2		)	—			0.2			—			—
Acquisition Related Transaction, Integration and Other Costs	6.2			5.4			1.2			5.6			6.7			28.2			3.6			6.2			18.4			44.7
Other	30.3			23.3			25.0			24.3			21.8			20.3			14.1			14.7			102.9			70.9
Other Expenses	36.5			28.7			26.2			29.9			28.5			48.3			17.7			21.1			121.3			115.6
Interest and Other Expenses	46.5			43.7			38.0			41.4			42.6			61.7			25.7			29.0			169.6			159.0
Total Expenses	$	311.9		$	299.7		$	301.5		$	276.2		$	315.8		$	357.7		$	196.9		$	189.1		$	1,189.3		$	1,059.5

Page 26

Kemper Corporation Details of Investment Performance (Dollars in Millions)
	Three Months Ended																								Year Ended
	Dec 31, 2019			Sep 30, 2019			Jun 30, 2019			Mar 31, 2019			Dec 31, 2018			Sep 30, 2018			Jun 30, 2018			Mar 31, 2018			Dec 31, 2019			Dec 31, 2018
Net Investment Income
Interest on Fixed Income Securities	$	73.9		$	73.5		$	75.6		$	76.4		$	71.5		$	70.6		$	64.4		$	62.4		$	299.4		$	268.9
Dividends on Equity Securities Excluding Alternative Investments	8.3			5.2			6.9			2.5			6.6			2.5			2.6			1.9			22.9			13.6
Alternative Investments:
Equity Method Limited Liability Investments	0.4			1.6			2.6			(3.6		)	2.9			(0.4		)	1.4			7.1			1.0			11.0
Limited Liability Investments Included in Equity Securities	5.1			5.2			5.1			2.6			3.6			13.7			5.2			3.9			18.0			26.4
Total Alternative Investments	5.5			6.8			7.7			(1.0		)	6.5			13.3			6.6			11.0			19.0			37.4
Short-term Investments	1.3			2.5			2.6			1.8			2.7			2.3			1.2			0.8			8.2			7.0
Real Estate	2.7			2.4			2.2			2.5			2.4			2.4			2.4			2.4			9.8			9.6
Loans to Policyholders	5.7			5.9			5.7			5.3			6.0			5.5			5.5			5.5			22.6			22.5
Other	0.6			0.6			0.3			—			0.3			0.2			0.4			—			1.5			0.9
Total Investment Income	98.0			96.9			101.0			87.5			96.0			96.8			83.1			84.0			383.4			359.9
Investment Expenses:
Real Estate	2.4			2.5			2.3			2.4			2.2			2.6			2.6			2.3			9.6			9.7
Other Investment Expenses	1.7			2.7			2.7			2.4			2.5			2.2			2.1			2.5			9.5			9.3
Total Investment Expenses	4.1			5.2			5.0			4.8			4.7			4.8			4.7			4.8			19.1			19.0
Net Investment Income	$	93.9		$	91.7		$	96.0		$	82.7		$	91.3		$	92.0		$	78.4		$	79.2		$	364.3		$	340.9
Net Realized Gains (Losses) on Sales of Investments
Fixed Maturities:
Gains on Sales	$	1.4		$	1.9		$	22.7		$	15.1		$	14.1		$	5.9		$	1.2		$	4.1		$	41.1		$	25.3
Losses on Sales	—			(0.3		)	(1.9		)	(2.6		)	(4.6		)	(2.5		)	(1.9		)	(2.1		)	(4.8		)	(11.1		)
Equity Securities:
Gains on Sales	1.3			0.2			0.7			3.6			6.9			0.2			4.6			0.6			5.8			12.3
Losses on Sales	0.1			(0.1		)	(0.2		)	—			—			—			—			—			(0.2		)	—
Other Investments:
Losses on Sales	—			—			—			—			—			—			(0.1		)	—			—			(0.1		)
Net Realized Gains on Sales of Investments	$	2.8		$	1.7		$	21.3		$	16.1		$	16.4		$	3.6		$	3.8		$	2.6		$	41.9		$	26.4
Net Impairment Losses Recognized in Earnings
Fixed Maturities	$	(1.7	)	$	(1.7	)	$	(6.3	)	$	(3.6	)	$	(1.5	)	$	(0.2	)	$	—		$	(0.3	)	$	(13.3	)	$	(2.0	)
Equity Securities	—			(0.1		)	(0.4		)	—			(0.7		)	(1.6		)	—			(0.2		)	(0.5		)	(2.5		)
Net Impairment Losses Recognized in Earnings	$	(1.7	)	$	(1.8	)	$	(6.7	)	$	(3.6	)	$	(2.2	)	$	(1.8	)	$	—		$	(0.5	)	$	(13.8	)	$	(4.5	)

Page 27

Kemper Corporation Details of Invested Assets (Dollars in Millions) (Unaudited)
	Dec 31, 2019				Dec 31, 2018				Dec 31, 2017
	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	$	815.9	9.0	%	$	865.7	10.7	%	$	556.1	8.2	%
States and Political Subdivisions	1,515.8		16.8		1,619.1		20.1		1,701.8		25.0
Foreign Governments	16.8		0.2		5.9		0.1		3.2		—
Corporate Securities:
Bonds and Notes	3,859.7		42.7		3,393.8		42.1		2,980.6		43.8
Redeemable Preferred Stocks	6.7		0.1		—		—		0.1		—
Collaterized Loan Obligations	618.2		6.8		524.0		6.5		139.8		2.1
Other Mortgage- and Asset-backed	89.0		1.0		15.7		0.2		1.1		—
Total Fixed Maturities Reported at Fair Value	6,922.1		76.5		6,424.2		79.6		5,382.7		79.1
Equity Securities Reported at Fair Value:
Preferred Stocks	59.2		0.7		54.2		0.7		78.8		1.2
Common Stocks	13.2		0.1		10.9		0.1		24.8		0.4
Other Equity Interests:
Exchange Traded Funds	586.8		6.5		427.3		5.3		219.5		3.2
Limited Liability Companies and Limited Partnerships	248.1		2.7		192.0		2.4		202.9		3.0
Total Equity Securities Reported at Fair Value	907.3		10.0		684.4		8.5		526.0		7.7
Equity Securities Reported at Modified Cost:
Preferred Stocks	9.1		0.1		9.2		0.1		—		—
Common Stocks	12.3		0.1		8.8		0.1		—		—
Limited Liability Companies and Limited Partnerships	20.5		0.2		23.5		0.3		—		—
Total Equity Securities Reported at Modified Cost	41.9		0.4		41.5		0.5		—		—
Convertible Securities at Fair Value	37.3		0.4		31.5		0.4		—		—
Equity Method Limited Liability Investments	220.4		2.4		187.0		2.3		161.0		2.4
Fair Value Option Investments	—		—		—		—		77.5		1.1
Short-term Investments at Cost which Approximates Fair Value	470.9		5.2		286.1		3.5		235.5		3.5
Other Investments:
Loans to Policyholders at Unpaid Principal	305.6		3.4		300.6		3.7		298.6		4.4
Real Estate at Depreciated Cost	111.4		1.2		114.2		1.4		116.8		1.7
Mortgage Loans	27.5		0.3		—		—		—		—
Trading Securities at Fair Value	—		—		—		—		6.7		0.1
Other	—		—		—		—		0.1		—
Total Other Investments	444.5		4.9		414.8		5.1		422.2		6.2
Total Investments	$	9,044.4	100.0	%	$	8,069.5	100.0	%	$	6,804.9	100.0	%
1 Sum of percentages for individual lines may not equal subtotals and grand total due to rounding.

Page 28

Kemper Corporation Details of Invested Assets (continued) (Dollars in Millions) (Unaudited)
	Dec 31, 2019				Dec 31, 2018				Dec 31, 2017
	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	$	4,387.1	63.4	%	$	4,156.6	64.7	%	$	3,481.8	64.7	%
BBB	2,044.1		29.5		1,752.6		27.3		1,335.2		24.8
BB, B	319.2		4.6		333.7		5.2		357.2		6.6
CCC or Lower	171.7		2.5		181.3		2.8		208.5		3.9
Total Investments in Fixed Maturities	$	6,922.1	100.0	%	$	6,424.2	100.0	%	$	5,382.7	100.0	%
Duration (in Years)
Total Investments in Fixed Maturities	7.1				6.2				6.2
1 Sum of percentages for individual lines may not equal subtotals and grand total due to rounding.

Page 29

Kemper Corporation Investment Concentration (Dollars in Millions) (Unaudited)
	Dec 31, 2019				Dec 31, 2018				Dec 31, 2017
Fair Value of Non-governmental Fixed Maturities by Industry	Amount		Percent of Total Investments		Amount		Percent of Total Investments		Amount		Percent of Total Investments
Finance, Insurance and Real Estate	$	1,522.8	16.8	%	$	1,269.3	15.7	%	$	780.2	11.5	%
Manufacturing	1,356.4		15.0		1,270.0		15.7		1,168.8		17.2
Transportation, Communication and Utilities	650.2		7.2		449.0		5.6		353.7		5.2
Services	604.4		6.7		516.4		6.4		453.3		6.7
Retail Trade	183.3		2.0		164.8		2.0		102.6		1.5
Mining	154.5		1.7		158.6		2.0		163.5		2.4
Wholesale Trade	72.9		0.8		78.4		1.0		81.3		1.2
Agriculture, Forestry and Fishing	12.4		0.1		13.7		0.2		14.5		0.2
Other	16.6		0.2		13.3		0.2		3.7		0.1
Total Fair Value of Non-governmental Fixed Maturities	$	4,573.5	50.5	%	$	3,933.5	48.8	%	$	3,121.6	46.0	%

	Dec 31, 2019
Ten Largest Investment Exposures 1	Fair Value		Percent of Total Investments
Fixed Maturities:
States including their Political Subdivisions:
Texas	$	118.6	1.3	%
Georgia	101.8		1.1
Colorado	86.0		1.0
Louisiana	70.9		0.8
Michigan	69.6		0.8
California	67.8		0.7
New York	60.4		0.7
Ohio	55.1		0.6
Equity Securities at Fair Value—Other Equity Interests:
Vanguard Long-Term Corp Bond ETF	106.1		1.2
iShares Long-Term Corporate Bond ETF	69.7		0.8
Total	$	806.0	9.0	%

¹  Excluding Investments in U.S. Government and Government Agencies and Authorities at December 31, 2019.

Page 30

Kemper Corporation Municipal Bond Securities (Dollars in Millions) (Unaudited)
	Dec 31, 2019
	State General Obligation		Political Subdivision General Obligation		Revenue		Total Fair Value		Percent of Total Muni Bond1		Percent of Total Investments1
Texas	$	32.5	$	14.0	$	72.1	$	118.6	7.8	%	1.3	%
Georgia	60.7		5.2		35.9		101.8		6.7		1.1
Colorado	—		11.2		74.8		86.0		5.7		1.0
Louisiana	47.4		5.9		17.7		71.0		4.7		0.8
Michigan	39.5		—		30.1		69.6		4.6		0.8
California	13.6		5.1		49.1		67.8		4.5		0.7
New York	6.3		2.7		51.5		60.5		4.0		0.7
Ohio	6.3		—		48.8		55.1		3.6		0.6
Washington	15.1		0.3		38.4		53.8		3.5		0.6
Pennsylvania	11.1		2.6		31.0		44.7		2.9		0.5
Virginia	8.0		19.5		14.8		42.3		2.8		0.5
Utah	5.8		—		34.3		40.1		2.6		0.4
Florida	12.7		—		27.2		39.9		2.6		0.4
Minnesota	—		—		37.1		37.1		2.4		0.4
Indiana	—		1.6		35.4		37.0		2.4		0.4
Oregon	32.4		—		3.5		35.9		2.4		0.4
Massachusetts	2.7		1.5		29.9		34.1		2.2		0.4
New Mexico	—		—		33.8		33.8		2.2		0.4
District Of Columbia	—		4.9		26.7		31.6		2.1		0.3
South Carolina	22.6		1.8		5.6		30.0		2.0		0.3
Maryland	2.1		20.4		6.7		29.2		1.9		0.3
Wisconsin	15.2		7.3		6.6		29.1		1.9		0.3
Connecticut	25.8		—		—		25.8		1.7		0.3
Illinois	—		—		24.2		24.2		1.6		0.3
Nebraska	—		7.7		15.6		23.3		1.5		0.3
Tennessee	3.6		8.0		10.6		22.2		1.5		0.2
Missouri	—		—		21.9		21.9		1.4		0.2
Hawaii	20.1		—		—		20.1		1.3		0.2
New Jersey	—		—		19.4		19.4		1.3		0.2
Arkansas	19.2		—		—		19.2		1.3		0.2
Kentucky	—		—		17.1		17.1		1.1		0.2
Rhode Island	4.5		—		11.3		15.8		1.0		0.2
Mississippi	12.9		—		2.5		15.4		1.0		0.2
Alabama	—		—		15.0		15.0		1.0		0.2
Alaska	1.9		2.9		10.1		14.9		1.0		0.2
Iowa	—		—		13.9		13.9		0.9		0.2
Arizona	—		0.8		12.8		13.6		0.9		0.2
Idaho	—		—		12.5		12.5		0.8		0.1
Oklahoma	—		—		11.2		11.2		0.7		0.1
All Other States	5.5		6.3		49.5		61.3		4.0		0.7
Total	$	427.5	$	129.7	$	958.6	$	1,515.8	100.0	%	16.8	%
1 Sum of percentages for individual lines may not equal total due to rounding.

Page 31

Kemper Corporation Investments in Limited Liability Companies and Limited Partnerships (Dollars in Millions) (Unaudited)
	Unfunded Commitment		Reported Value
Asset Class	Dec 31, 2019		Dec 31, 2019		Dec 31, 2018
Reported as Equity Method Limited Liability Investments at Cost Plus Cumulative Undistributed Earnings:
Mezzanine Debt	$	59.9	$	129.3	$	99.6
Senior Debt	21.7		16.0		15.4
Distressed Debt	—		22.7		34.5
Secondary Transactions	15.6		11.5		21.2
Leveraged Buyout	—		0.1		4.2
Growth Equity	—		5.3		5.4
Real Estate	—		29.9		—
Other	—		5.6		6.7
Total Equity Method Limited Liability Investments	97.2		220.4		187.0
Reported as Other Equity Interests at Fair Value:
Mezzanine Debt	94.7		126.1		111.7
Senior Debt	23.2		39.5		34.3
Distressed Debt	18.7		16.8		14.5
Secondary Transactions	6.8		4.9		6.7
Hedge Funds	—		48.2		14.7
Leveraged Buyout	2.2		4.4		4.2
Other	8.0		8.2		5.9
Total Reported as Other Equity Interests at Fair Value	153.6		248.1		192.0
Reported as Other Equity Interests at Modified Cost:
Mezzanine Debt	—		1.6		1.5
Other	0.1		18.9		22.1
Total Reported as Other Equity Interests at Modified Cost	0.1		20.5		23.6
Total Investments in Limited Liability Companies and Limited Partnerships	$	250.9	$	489.0	$	402.6

Page 32

Kemper Corporation

Definitions of Non-GAAP Financial Measures

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

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

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

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

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

1) Net Realized Gains on Sales of Investments;

2) Net Impairment Losses Recognized in Earnings related to investments;

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

4) Acquisition Related Transaction, Integration and Other Costs;

5) Loss from Early Extinguishment of Debt; and

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

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

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

Page 33

Kemper Corporation

Definitions of Non-GAAP Financial Measures (continued)

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

	Three Months Ended																								Year Ended
Dollars in Millions (Unaudited)	Dec 31, 2019			Sep 30, 2019			Jun 30, 2019			Mar 31, 2019			Dec 31, 2018			Sep 30, 2018			Jun 30, 2018			Mar 31, 2018			Dec 31, 2019			Dec 31, 2018
Income from Continuing Operations	$	124.7		$	129.0		$	122.1		$	155.3		$	5.0		$	92.3		$	37.5		$	53.6		$	531.1		$	188.4
Less Net Income (Loss) From:
Change in Fair Value of Equity and Convertible Securities	30.9			7.8			20.1			50.9			(60.4		)	8.7			0.3			0.6			109.7			(50.8		)
Net Realized Gains on Sales of Investments	2.2			1.4			16.8			12.7			13.0			2.8			3.0			2.1			33.1			20.9
Net Impairment Losses Recognized in Earnings	(1.3		)	(1.5		)	(5.3		)	(2.8		)	(1.8		)	(1.4		)	—			(0.4		)	(10.9		)	(3.6		)
Acquisition Related Transaction and Integration Costs	(5.0		)	(4.1		)	(1.0		)	(4.4		)	(5.7		)	(22.3		)	(2.3		)	(6.2		)	(14.5		)	(36.5		)
Loss from Early Extinguishment of Debt	—			(4.6		)	—			—			—			—			—			—			(4.6		)	—
Adjusted Consolidated Net Operating Income	$	97.9		$	130.0		$	91.5		$	98.9		$	59.9		$	104.5		$	36.5		$	57.5		$	418.3		$	258.4

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

	Three Months Ended																								Year Ended
(Unaudited)	Dec 31, 2019			Sep 30, 2019			Jun 30, 2019			Mar 31, 2019			Dec 31, 2018			Sep 30, 2018			Jun 30, 2018			Mar 31, 2018			Dec 31, 2019			Dec 31, 2018
Income from Continuing Operations Per Unrestricted Share	$	1.87		$	1.93		$	1.87		$	2.38		$	0.08		$	1.42		$	0.73		$	1.03		$	8.04		$	3.22
Less Net Income (Loss) Per Unrestricted Share From:
Change in Fair Value of Equity and Convertible Securities	0.46			0.11			0.31			0.78			(0.93		)	0.13			0.01			0.01			1.66			(0.87		)
Net Realized Gains on Sales of Investments	0.03			0.02			0.26			0.19			0.20			0.04			0.06			0.04			0.50			0.36
Net Impairment Losses Recognized in Earnings	(0.02		)	(0.02		)	(0.08		)	(0.04		)	(0.02		)	(0.02		)	—			(0.01		)	(0.16		)	(0.06		)
Acquisition Related Transaction and Integration Costs	(0.06		)	(0.06		)	(0.01		)	(0.07		)	(0.09		)	(0.34		)	(0.04		)	(0.12		)	(0.22		)	(0.63		)
Loss from Early Extinguishment of Debt	—			(0.07		)	—			—			—			—			—			—			(0.07		)	—
Adjusted Consolidated Net Operating Income Per Unrestricted Share	$	1.46		$	1.95		$	1.39		$	1.52		$	0.92		$	1.61		$	0.70		$	1.11		$	6.33		$	4.42

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

Page 34

Kemper Corporation

As Adjusted for Acquisition Non-GAAP Financial Measure

As Adjusted for Acquisition amounts are non-GAAP financial measures. For the periods subsequent to acquisition, the three months endedDecember 31, 2019, September 30, 2019, June 30, 2019, March 31, 2019, December 31, 2018 and September 30, 2018, the as adjusted amounts are computed by subtracting the impact of purchase accounting adjustments from the comparable consolidated GAAP financial measure reported by Kemper. For the periods prior to the acquisition, the three months endedJune 30, 2018 and March 31, 2018, as adjusted amounts are computed by adding the historical results of Infinity to the comparable consolidated GAAP financial measure reported by Kemper. The Company believes computing and presenting results on an adjusted basis are useful to investors and are used by management to provide meaningful and comparable year-over-year comparisons.

Page 35

Kemper Corporation

As Adjusted for Acquisition - Consolidated Financial Highlights

(Dollars in Millions)

(Unaudited)

	Three Months Ended																					Year Ended
	Dec 31, 2019			Sep 30, 2019			Jun 30, 2019			Mar 31, 2019		Dec 31, 2018			Sep 30, 2018			Jun 30, 2018		Mar 31, 2018		Dec 31, 2019			Dec 31, 2018
Earned Premiums
Kemper - GAAP As Reported	$	1,145.8		$	1,135.2		$	1,116.6		$	1,074.8	$	1,063.6		$	1,052.9		$	658.1	$	609.8	$	4,472.4		$	3,384.4
Infinity - Prior to Acquisition	—			—			—			—		—			—			374.3		354.0		—			728.3
As Adjusted1	$	1,145.8		$	1,135.2		$	1,116.6		$	1,074.8	$	1,063.6		$	1,052.9		$	1,032.4	$	963.8	$	4,472.4		$	4,112.7
Adjusted Consolidated Net Operating Income (Loss)
Kemper	$	97.9		$	130.0		$	91.5		$	98.9	$	59.9		$	104.5		$	36.5	$	57.5	$	418.3		$	258.4
Infinity - Prior to Acquisition	—			—			—			—		—			—			29.5		23.8		—			53.3
Less: Impact of Purchase Accounting	(4.4		)	(6.1		)	(4.2		)	2.1		(20.5		)	(39.5		)	—		—		(12.6		)	(60.0		)
As Adjusted1	$	102.3		$	136.1		$	95.7		$	96.8	$	80.4		$	144.0		$	66.0	$	81.3	$	430.9		$	371.7
1 As Adjusted is a non-GAAP financial measure, which is computed by excluding the impact of purchase accounting and including the historical results of Legacy Kemper and Legacy Infinity in periods prior to the acquisition date of July 2, 2018.

Page 36

Kemper Corporation

Selected Financial Information

As Adjusted for Acquisition - Specialty Property & Casualty Insurance Segment

(Dollars in Millions)

(Unaudited)

	Three Months Ended																								Year Ended
	Dec 31, 2019			Sep 30, 2019			Jun 30, 2019			Mar 31, 2019			Dec 31, 2018			Sep 30, 2018			Jun 30, 2018			Mar 31, 2018			Dec 31, 2019			Dec 31, 2018
Earned Premiums
Kemper Specialty P&C - GAAP As Reported	$	799.7		$	783.4		$	766.0		$	729.3		$	717.8		$	711.2		$	320.0		$	278.4		$	3,078.4		$	2,027.4
Infinity - Prior to Acquisition	—			—			—			—			—			—			374.3			354.0			—			728.3
As Adjusted1	$	799.7		$	783.4		$	766.0		$	729.3		$	717.8		$	711.2		$	694.3		$	632.4		$	3,078.4		$	2,755.7
Current Year Non-CAT Losses and LAE
Kemper Specialty P&C - GAAP As Reported	$	599.5		$	579.4		$	579.2		$	544.3		$	530.3		$	527.6		$	247.2		$	212.3		$	2,302.4		$	1,517.4
Infinity - Prior to Acquisition	—			—			—			—			—			—			277.4			273.3			—			550.7
Less: Impact of Purchase Accounting
Amortization of Fair Value Adjustment to Infinity's Unpaid Loss and LAE	0.8			0.8			1.2			1.5			1.9			2.5			—			—			4.3			4.4
As Adjusted1	$	598.7		$	578.6		$	578.0		$	542.8		$	528.4		$	525.1		$	524.6		$	485.6		$	2,298.1		$	2,063.7
Insurance Expenses
Kemper Specialty P&C - GAAP As Reported	$	150.7		$	139.2		$	140.9		$	124.8		$	148.0		$	176.8		$	49.0		$	47.9		$	555.6		$	421.7
Infinity - Prior to Acquisition	—			—			—			—			—			—			68.1			65.4			—			133.5
Less: Impact of Purchase Accounting
Amortization of VOBA	0.6			0.6			0.8			1.5			42.0			97.3			—			—			3.5			139.3
Amortization of Estimated Legacy Infinity Deferred Policy Acquisition Costs ("DPAC")	—			—			(3.1		)	(12.1		)	(24.2		)	(56.2		)	—			—			(15.2		)	(80.4		)
Amortization of VOBA, Net of Legacy Infinity DPAC	0.6			0.6			(2.3		)	(10.6		)	17.8			41.1			—			—			(11.7		)	58.9
Amortization of Finite Life Intangible Assets Acquired	1.2			3.3			3.3			3.3			3.3			3.3			—			—			11.1			6.6
Other	3.4			3.4			3.4			3.4			3.4			3.4			—			—			13.6			6.8
Total Purchase Accounting Adjustments	5.2			7.3			4.4			(3.9		)	24.5			47.8			—			—			13.0			72.3
As Adjusted1	$	145.5		$	131.9		$	136.5		$	128.7		$	123.5		$	129.0		$	117.1		$	113.3		$	542.6		$	482.9
Underlying Combined Ratio1
Kemper Specialty P&C Segment	93.8		%	91.8		%	94.0		%	91.7		%	94.5		%	99.1		%	92.5		%	93.4		%	92.7		%	95.7		%
As Adjusted1	93.1		%	90.7		%	93.3		%	92.1		%	90.8		%	92.0		%	92.4		%	94.7		%	92.3		%	92.4		%
1 As Adjusted is a non-GAAP financial measure, which is computed by excluding the impact of purchase accounting in 2018 and including the historical results of Legacy Kemper and Legacy Infinity in periods prior to the acquisition date of July 2, 2018. See page 33.

Page 37

Kemper Corporation

Selected Financial Information

As Adjusted for Acquisition - Specialty Personal Automobile Insurance

(Dollars in Millions)

(Unaudited)

	Three Months Ended																								Year Ended
	Dec 31, 2019			Sep 30, 2019			Jun 30, 2019			Mar 31, 2019			Dec 31, 2018			Sep 30, 2018			Jun 30, 2018			Mar 31, 2018			Dec 31, 2019			Dec 31, 2018
Earned Premiums
Kemper Specialty Personal Automobile Insurance - GAAP As Reported	$	733.1		$	719.2		$	703.7		$	669.6		$	660.5		$	655.3		$	307.5		$	266.2		$	2,825.6		$	1,889.5
Infinity - Prior to Acquisition	—			—			—			—			—			—			332.6			314.2			—			646.8
As Adjusted1	$	733.1		$	719.2		$	703.7		$	669.6		$	660.5		$	655.3		$	640.1		$	580.4		$	2,825.6		$	2,536.3
Current Year Non-CAT Losses and LAE
Kemper Specialty Personal Automobile Insurance	$	557.5		$	538.2		$	537.0		$	498.8		492.0			$	485.6		$	237.8		$	202.8		$	2,131.5		$	1,418.2
Infinity - Prior to Acquisition	—			—			—			—			—			—			244.5			242.3			—			486.8
Less: Impact of Purchase Accounting
Amortization of Fair Value Adjustment to Infinity's Unpaid Loss and LAE	0.6			0.6			0.9			1.3			1.5			2.0			—			—			3.4			3.5
As Adjusted1	$	556.9		$	537.6		$	536.1		$	497.5		$	490.5		$	483.6		$	482.3		$	445.1		$	2,128.1		$	1,901.5
Insurance Expenses
Kemper Specialty Personal Automobile Insurance - GAAP As Reported	$	138.1		$	128.4		$	128.9		$	114.7		$	132.5		$	160.8		$	46.7		$	45.2		$	510.1		$	385.2
Infinity - Prior to Acquisition	—			—			—			—			—			—			60.8			58.5			—			119.3
Less: Impact of Purchase Accounting
Amortization of VOBA	0.4			0.4			0.7			1.3			37.7			87.8			—			—			2.8			125.5
Amortization of Estimated Legacy Infinity Deferred Policy Acquisition Costs ("DPAC")	—			—			(2.8		)	(9.8		)	(21.9		)	(48.7		)	—			—			(12.6		)	(70.6		)
Amortization of VOBA, Net of Legacy Infinity DPAC	0.4			0.4			(2.1		)	(8.5		)	15.8			39.1			—			—			(9.8		)	54.9
Amortization of Finite Life Intangible Assets Acquired	1.1			3.0			3.0			3.0			3.0			3.0			—			—			10.1			6.0
Other	3.0			3.0			3.0			3.0			3.0			3.0			—			—			12.0			6.0
Total Purchase Accounting Adjustments	4.5			6.4			3.9			(2.5		)	21.8			45.1			—			—			12.3			66.9
As Adjusted1	$	133.6		$	122.0		$	125.0		$	117.2		$	110.7		$	115.7		$	107.5		$	103.7		$	497.8		$	437.6
Underlying Combined Ratio1
Kemper Specialty Personal Automobile Insurance	94.8		%	92.8		%	94.6		%	91.6		%	94.6		%	98.6		%	92.5		%	93.2		%	93.5		%	95.5		%
As Adjusted1	94.2		%	91.7		%	93.9		%	91.8		%	91.0		%	91.5		%	92.1		%	94.6		%	92.9		%	92.2		%
1 As Adjusted is a non-GAAP financial measure, which is computed by excluding the impact of purchase accounting in 2018 and including the historical results of Legacy Kemper and Legacy Infinity in periods prior to the acquisition date of July 2, 2018. See page 33.

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EX-99.3

Fourth Quarter 2019 Earnings February 10, 2020 Earnings Call Presentation – 4Q 2019

Preliminary Matters Cautionary Statements Regarding Forward-Looking Information This presentation may contain or incorporate by reference information that includes or is based on forward-looking statements within the meaning of the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements give expectations or forecasts of future events, and can be identified by the fact that they relate to future actions, performance or results rather than strictly to historical or current facts. Any or all forward-looking statements may turn out to be wrong, and, accordingly, readers are cautioned not to place undue reliance on such statements, which speak only as of the date of this presentation. Forward-looking statements involve a number of risks and uncertainties that are difficult to predict, and are not guarantees of future performance. Among the general factors that could cause actual results and financial condition to differ materially from estimated results and financial condition are the possibility that the anticipated benefits and synergies from an acquisition may not be fully realized to the extent or within the time frame previously expected and other factors listed in periodic reports filed by Kemper Corporation with the Securities and Exchange Commission (SEC). No assurances can be given that the results and financial condition contemplated in any forward-looking statements will be achieved or will be achieved in any particular timetable. Kemper assumes no obligation to publicly correct or update any forward-looking statements as a result of events or developments subsequent to the date of this presentation. The reader is advised, however, to consult any further disclosures Kemper makes on related subjects in its filings with the SEC. Non-GAAP Financial Measures This presentation contains non-GAAP financial measures that the company believes are meaningful to investors. Non-GAAP financial measures have been reconciled to the most comparable GAAP financial measure. Earnings Call Presentation – 4Q 2019 2

Create Long-Term Shareholder Value Leverage competitive advantages to grow returns and BVPS1 over time Diversified sources of earnings; Sustainable competitive Growing returns Strong capital/liquidity advantages and build and book value per positions; core capabilities share over time Disciplined approach to capital management Strategic focus: Consumer-related businesses with opportunities that: • Target niche markets • Have limited, weak or unfocused competition • Require unique expertise (underwriting, claim, distribution, analytics and other) Deliver low double-digit ROE2 over time ¹ Book value per share Earnings Call Presentation – 4Q 2019 2 Return on equity 3

Fourth Quarter 2019 Highlights Specialty P&C growth and stable Life earnings continue to drive strong results Continued double-digit return on equity and book value per share (BVPS) accretion • Net Income of $125 million and adjusted consolidated net operating income of $98 million • 27% increase in BVPS and 17% increase in BVPS ex. net unrealized gains on fixed maturities1 YTD Shareholder • 43% growth in TBVPS and 29% increase in TBVPS ex. net unrealized gains on fixed maturities1 YTD Value Creation • 14.8% ROAE2 and 24.7% ROAE2, ex. net unrealized gains on fixed maturities and goodwill1 • Earnings per share increased from $0.10 to $1.85, on a diluted basis • Adjusted consolidated net operating EPS1 increased 59% from $0.91 to $1.45 Strong Specialty P&C performance with continued stable L&H results • Specialty P&C Insurance underlying combined ratio1 remained strong at 93.8%, as reported or 4th Quarter 93.1%, as adjusted 1, earned premiums increased by $82 million, or 11%, benefitting from Operating accelerating diversified geographic growth • Life & Health results continue to provide stable cash flow and diversification benefits Performance • Refinement of CEI estimate had a $5 million after-tax favorable impact on L&H results • Exceeded all targeted financial synergies forecast with the acquisition of Infinity Strong capital position; significant financial flexibility • Debt-to-capital ratio of 16.4%; $867 million of available committed contingent liquidity Financial • In January, Fitch upgraded key financial strength ratings to ‘A’ and holding company senior debt Strength ratings to ‘BBB’; AM Best revised the outlook to positive from stable • The Board of Directors increased the quarterly dividend to $0.30 per share, an increase of 7% over the previous quarterly dividend and 20% increase over the February 2019 dividend ¹ Non-GAAP financial measure; please see reconciliation in appendix on pages 18-26 2 Return on average shareholders’ equity (5-point average) Earnings Call Presentation – 4Q 2019 4

Fourth Quarter Highlights Strategy continuing to yield strong results As Adjusted As Reported for Acquisition (1) Quarter Ended Quarter Ended Change Change Dec 31, from 4Q’18 Dec 31, from 4Q’18 (Dollars in millions, except per share amounts) 2019 (%) 2019 (%) Net Income $125 1,818% $129 378% Adjusted Consolidated Net Operating Income (1) $98 63% $102 27% Per Share Net Income - Diluted $1.85 1,750% $1.92 368% Adj. Consolidated Net Operating Income - Diluted (1) $1.45 59% $1.52 24% 27% increase in adjusted consolidated net operating income (adjusted for acquisition) 1 Non-GAAP financial measure; see reconciliation in appendix on page 24 Earnings Call Presentation – 4Q 2019 5

Operating Performance Continued to produce strong operating income Three Months Ended, As Reported Dec. 31, Sep. 30, Jun. 30, Mar. 31, Dec. 31, Variance Dollars per Unrestricted Share - Diluted 2019 2019 2019 2019 2018 QoQ Income from Continuing Operations $ 1.85 $ 1.91 $ 1.84 $ 2.35 $ 0.08 1.77 (Income) Loss from Change in FV of Equity & Convertible Securities (0.46) (0.11) (0.30) (0.77) 0.92 (1.38) Investment Related (Gains)/Losses (0.03) (0.02) (0.25) (0.19) (0.20) 0.17 Net Impairment Losses 0.02 0.02 0.08 0.04 0.02 - Acquisition Related Transaction, Integration & Other Costs 0.07 0.06 0.01 0.07 0.09 (0.02) Loss from Early Extinguishment of Debt - 0.07 - - - - Adj. Consolidated Net Operating Income1 1.45 1.93 1.38 1.50 0.91 0.54 Sources of Volatility: Income (Loss) After-Tax From: Catastrophes (0.19) (0.17) (0.34) (0.21) (0.30) 0.11 - Prior-year Reserve Development 0.18 0.24 0.16 0.22 0.05 0.13 - Alternative Investment Income 0.07 0.08 0.09 (0.01) 0.08 (0.01) - Partial Satisfaction of Judgment - - 0.24 - - - Sale of Classic Collectors Auto Business - 0.04 - - - - Refinement of CEI Estimate 0.07 0.18 - - - 0.07 Impact of Purchase Accounting (0.07) (0.09) (0.06) 0.03 (0.31) 0.24 Total from Sources of Volatility $ 0.06 $ 0.28 $ 0.09 $ 0.03 $ (0.48) $ 0.54 59% increase in adjusted consolidated net operating income per diluted share1 ¹ Non-GAAP financial measure; see reconciliation in appendix pages 18-26 Earnings Call Presentation – 4Q 2019 6

High Quality & Diversified Portfolio with Consistent Returns Stable Net Investment Income Overview • Core portfolio investment income largely in $93 $84 $98 $95 $98 line with the previous year, which did not (MM) $2 $1 $1 $4 $4 include the impact of investment in $7 ($1) $8 $7 $6 Corporate owned life insurance (COLI) • COLI income, recognized in the other $85 $84 $88 $85 $88 income line, increased to $3.6 million from $1.3 million in 4Q’18, reflecting increased investment allocation during the year 4Q18 1Q19 2Q19 3Q19 4Q19 Core Portfolio Alternative Inv. Portfolio Coli Investment Diversified & Highly-Rated Portfolio Pre-Tax Equiv. Annualized Book Yield 4.6% Portfolio Composition Fixed Maturity Ratings 4.6% 4.2% 4.7% 4.4% Other ≤ CCC 0.0% 0.0% 0.1% 0.1% Short-term B / BB 0.0% 1 Alternatives¹ 5% Corporates 5% 4.7% Equity¹ 6% 4.6% 4.2% 4.4% 4.5% 5% 2% 5% 30% U.S. 9% 53% BBB 63% 4Q18 1Q19 2Q19 3Q19 4Q19 Gov’t Core Portfolio COLI 17% A or Higher States/ • Portfolio creates consistent yields Munis $9.0 Billion $6.9 Billion ¹ Equity securities excludes $269 million of Other Equity Interests of LP/LLC’s that have been reclassified into Alternative Investments and excludes $253 million Bond ETF that has been reclassified into Corporates Earnings Call Presentation – 4Q 2019 7

Capital Generation Metrics Capital generation continues to grow as we deliver on strategic objectives Total Adjusted Return of BVPS Ex. Unrealized Gains on Fixed Maturities and Goodwill Growth 36% Book value cross-over from Infinity acquisition $40.27 • TBVPS ex. unrealized Infinity acquisition $38.43 closed 7/1/2018 $36.46 exceeded pre- $32.24 $32.99 $33.42 acquisition level four $31.21 $31.45 $31.10 $29.66 quarters ahead of plan • CAGR of 10.6% since 2016 2016 2017 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 Book Value Per Share ex. Goodwill and Unrealized¹ Cumulative Dividends Per Share Paid Return on Shareholders’ Equity 24.7% • Return levels are in 19.9% 20.3% line/above “over time 16.6% return” guidance levels 13.7% • ROATCE measure 11.6% 11.5% 11.4% 16.3% 8.0% 13.3% 13.1% appropriately captures 10.6% 11.4% how investors are 9.6% 9.5% 8.3% 1.1% 6.6% compensated for 0.9% intangibles 2016 2017 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 ROATCE2 ROE ex. Unrealized Gains on Fixed Maturities 3 ¹ Non-GAAP financial measure; please see reconciliation in appendix on pages 18-26 2 Return on average tangible common equity (rolling 5 point avg.); please see reconciliation in appendix on pages 18-26Earnings Call Presentation – 4Q 2019 8 3 Return on average shareholders equity excluding unrealized gains on fixed maturities (rolling 5 point avg.); please see reconciliation in appendix on pages 18-26

Strong Capital Position with Ample Liquidity Strong balance sheet with returns and capital generation in excess of long-term targets Strong Parent Company Liquidity Risk-Based Capital Ratios Life & Health P&C¹ $867 (%) (MM) $741 $684 $582 $641 $400 $385 $660 $385 $540 430 375 415 410 380 $341 $299 330 335 290 285 320 $197 $101 $207 2015 2016 2017 2018 2019 Borrowings available under credit agreement & from subs 2015 2016 2017 2018 2019 HoldCo Cash & Investments ¹Excludes Alliance United Cash Flow from Operating Activities Debt-to-Capital <30% 27.4% 27.6% 21.9% 23.0% (MM) 16.4% Debt $539 $538 $215 $241 $241 $134 2015 2016 2017 2018 2019 2014 2015 2016 2017 2018 2019 Total Capitalization $2.7B $2.7B $2.7B $4.0B $4.8B Balance sheet well positioned to meet operating capital and liquidity needs Earnings Call Presentation – 4Q 2019 9

Infinity Acquisition a Proven Success Financial targets achieved with continued upside expected Premium Outperformance1,2 Yield Enhancement2 Total Synergies2 (Cost Savings + Yield) ~$250mm of written premium above combined Net inv. income benefit from repositioning Revised synergy target achieved; expect add’l company expectations through 2019 Infinity’s portfolio is 70% higher than expected savings in claims, IT, and other support areas ✓ $17 ✓ $75 - 85 >$85 ✓ >$230 ~$250 $60 - 65 $5 - 10 Earned Premium Written Premium 2Q20 Target Recognized Initial Target Revised Target Recognized Key Financial Targets Achieved Metric Announced Target Current Status Achieved Target Operating Earnings Year 1: accretive (ex. VOBA3) • Operating earnings accretion greater than 20% Accretion Year 2: 10%+ accretive • Achieving ROE and ROATCE4 targets ✓ Tangible Book 2yr earnback • Tangible book value accretion achieved three quarters Value Earnback (static method) after close ✓ Debt / Total Cap. ~22% by 2Q 2019 • 3Q 2019 debt / total capitalization ratio of 16.4% ✓ Infinity acquisition has provided significant value to shareholders 1 Based on PIF growth in excess of combined company expectations (S-4) 2 $ in millions; 3 Value of business acquired; 4 Return on average tangible common equity Earnings Call Presentation – 4Q 2019 10

Specialty Property & Casualty Insurance Segment1 Strong, profitable Specialty P&C growth driven by strong foundations of the operating model Key Highlights Written Premium Population CAGR State Groupings 2019 Growth ’16-’19 Est. ’20-’30 • 9.0% growth in policies in-force, or 9.3% excluding ($ million) y/o/y Classic Collectors, compared to 4Q’18; California $2,011 8% 0.3% 0.8% • Growth two points higher than 3Q’19 Florida / Texas $685 13% 1.3% 1.6% • 66% of 4Q premium growth outside of California Expansion States $176 51% 1.0% 1.1% • YTD As Adj. Underlying Combined ratio of 92.3% Other $55 - 0.3% 0.4% • Commission expense increase drives further Total $2,926 10% premium growth US 0.6% Hispanic 1.6% Key Metrics Change ($ in millions) 4Q’19 to 4Q’18 Underlying Combined Ratio¹ (%) Earned Premiums $800 11.4% U/L Loss & LAE Ratio2 74.9% (120 bps) U/L Expense Ratio2 18.2% (100 bps) 93.3 93.1 92.4 92.0 92.3 92.1 92.7 Policies In-Force (000) 1,820 9.0% 92.1 90.8 90.7 Policies In-Force ex. Classic Collectors (000) 1,782 9.3% 4Q18 1Q19 2Q19 3Q19 4Q19 QTD YTD Strength of franchise creating value for policyholders and shareholders ¹ As adjusted2, including legacy Infinity in all prior periods 2 Non-GAAP financial measure; see reconciliation in appendix on pages 18-26 ; excludes impact of purchase accounting Earnings Call Presentation – 4Q 2019 11 Population growth sources include U.S. Census Bureau and The Association Institute

Preferred Property & Casualty Insurance Segment Efforts to bring the Preferred segment to target profitability are ongoing Key Highlights • Underlying combined ratio increased 150 basis points to 95.3% for the year - Auto underlying combined ratio remains elevated as we continue to reposition the business to achieve profitability; loss ratio improvement focused on product/underwriting and segmentation enhancements - Successful broad repositioning hindered by TX and NY Prime new business through early 4Q’19 - Home & Other underlying loss ratio increased due to non-catastrophe large losses Key Metrics Change ($ in millions) 4Q’19 to 4Q’18 Underlying Combined Ratio¹ Home & Other 104.6 104.5 (%) 99.7 100.4 100.2 Earned Premiums $68 (7.6%) 89.6 83.0 85.7 82.9 79.0 Policies In-Force (000) 236 (6.4%) Auto Earned Premiums $117 1.7% 4Q18 1Q19 2Q19 3Q19 4Q19 Policies In-Force (000) 248 (3.1%) Auto Home & Other Business repositioning continues ¹ Non-GAAP financial measure; please see reconciliation in appendix on pages 18-26 Earnings Call Presentation – 4Q 2019 12

Life & Health Insurance Segment Life & Health Segment demonstrated stable earnings and continued modest premium growth Key Highlights • Earned premiums grew 2.5% driven by continued focus on enhancements to distribution capabilities and process improvements • Refinement of CEI estimate had a $5 million after-tax favorable impact on Life results Revenues1 Key Metrics Change ($ in millions) 4Q’19 to 4Q’18 $209 $212 $215 $211 $213 L&H (MM) $52 $52 $53 $50 $52 Net Operating Income $28.9 113% Life $157 $160 $162 $161 $161 Face Value of In-Force $19,608 0.2% Policies In-Force (000) 3,448 (2.6%) 4Q18 1Q19 2Q19 Q319 Q419 Earned Premiums Net Investment Income Provides diversified cash flow generation ¹ Excludes other income Earnings Call Presentation – 4Q 2019 13

Appendix Earnings Call Presentation – 4Q 2019 14

A Leading Specialized Insurer Taking advantage of a diversified portfolio of niche businesses…. Founded in 1990 and headquartered in Chicago, with subsidiaries writing policies since 1911 ~$13B ~6.4M ~30,000 ~8,900 Assets Policies Agents/Brokers Employees Specialty P&C insurance providing Preferred personal lines insurance Life and health insurance personal and commercial providing preferred automobile, providing life, supplemental automobile insurance products homeowners and other personal benefits, and other property insurance products insurance products ….to create value for all our stakeholders Earnings Call Presentation – 4Q 2019 15

Capital Deployment Priorities Dedicated to being good stewards of capital 1. Investment in the business • Fund profitable organic growth at appropriate risk-adjusted returns • Strategic investments and acquisitions that enhance the business and meet or exceed our ROE targets over time 2. Return capital to shareholders • Repurchase shares opportunistically • Maintain competitive dividends Management and capital deployment priorities focused on maximizing shareholder value Earnings Call Presentation – 4Q 2019 16

2020 Reinsurance Program Both programs were renewed with no significant change Catastrophe Reinsurance Program (Multi-Year) Aggregate Catastrophe Program • Same coverage as 2019 program 1-Year Term Placed 1/1/20 • Intended to reduce volatility from high- $25M xs $250M 95% Placed frequency, low severity events • Coverage 3-Year Term 3-Year Term 3-Year Term – $50 million in excess of $60 million Placed 1/1/18 Placed 1/1/19 Placed 1/1/20 5% Retention – $500k deductible per storm $100M xs $150M $100M xs $150M $100M xs $150M – Perils: All perils, excluding named storms 31.67% Placed 31.67% Placed 31.67% Placed (e.g., hurricanes) and earthquakes of $225M $225M of – Covered Line: Property, Fire and Dwelling Retention 3-Year Term 3-Year Term 3-Year Term xs Placed 1/1/18 Placed 1/1/19 Placed 1/1/20 $50M 2020 Aggregate Catastrophe $100M xs $50M $100M xs $50M $100M xs $50M Reinsurance Program 31.67% Placed 31.67% Placed 31.67% Placed Retention 100% of first $50M • Policy placed at 1/1/20 similar to prior three years • Total coverage: 95% of $225 million excess of $50 million Earnings Call Presentation – 4Q 2019 17

Non-GAAP Financial Measures Book Value Per Share Excluding Net Unrealized Gains on Fixed Maturities is a ratio that uses a non-GAAP financial measure. It is calculated by dividing shareholders’ equity after excluding the after-tax impact of net unrealized gains on fixed income securities by total Common Shares Issued and Outstanding. Book value per share is the most directly comparable GAAP financial measure. The Company uses the trend in book value per share, excluding the after-tax impact of net unrealized gains on fixed income securities in conjunction with book value per share to identify and analyze the change in net worth attributable to management efforts between periods. The Company believes the non-GAAP financial measure is useful to investors because it eliminates the effect of items that can fluctuate significantly from period to period and are generally driven by economic developments, primarily capital market conditions, the magnitude and timing of which are generally not influenced by management. The Company believes it enhances understanding and comparability of performance by highlighting underlying business activity and profitability drivers. Book Value Per Share Excluding Net Unrealized Gains on Fixed Maturities and Goodwill is a calculation that uses a non-GAAP financial measure. It is calculated by dividing shareholders’ equity after excluding the after-tax impact of net unrealized gains on fixed income securities and goodwill by total Common Shares Issued and Outstanding. Book value per share is the most directly comparable GAAP financial measure. The Company uses the trends in book value per share excluding the after-tax impact of net unrealized gains on fixed income securities and goodwill in conjunction with book value per share to identify and analyze the change in net worth excluding goodwill attributable to management efforts between periods. The Company believes the non-GAAP financial measure is useful to investors because it eliminates the effect of items that can fluctuate significantly from period to period and are generally driven by economic developments, primarily capital market conditions, the magnitude and timing of which are not influenced by management. The Company believes it enhances understanding and comparability of performance by highlighting underlying business activity and profitability drivers. For the Periods Ended 4Q'19 3Q'19 2Q'19 1Q'19 4Q'18 3Q'18 2Q'18 1Q'18 2017 2016 Book Value Per Share $ 59.59 $ 58.43 $ 55.34 $ 51.13 $ 47.10 $ 47.33 $ 39.68 $ 40.05 $ 41.11 $ 38.52 Less: Net Unrealized Gains on Fixed Maturities Per Share (6.51) (6.92) (5.52) (3.72) (1.70) (1.67) (2.83) (3.70) (5.54) (3.52) Book Value Per Share Excluding Net Unrealized Gains on Fixed Maturities $ 53.08 $ 51.51 $ 49.82 $ 47.41 $ 45.40 $ 45.66 $ 36.85 $ 36.35 $ 35.57 $ 35.00 Less: Goodwill (16.72) (16.71) (16.74) (17.12) (17.18) (16.85) (6.26) (6.27) (6.28) (6.30) Book Value Per Share Excluding Net Unrealized Gains on Fixed Maturities and Goodwill $ 36.36 $ 34.80 $ 33.08 $ 30.29 $ 28.22 $ 28.81 $ 30.59 $ 30.08 $ 29.29 $ 28.70 Earnings Call Presentation – 4Q 2019 18

Non-GAAP Financial Measures Return on Equity For the Periods Ended 4Q'19 3Q'19 2Q'19 1Q'19 4Q'18 3Q'18 2Q'18 1Q'18 2017 2016 Rolling 12 Month Return on Average Shareholders' Equity (5 Point Avg) 14.8% 12.1% 12.4% 10.8% 7.7% 9.7% 8.5% 8.5% 5.9% 0.8% Less: Net Unrealized Gains on Fixed Maturities 1.5% 1.0% 0.9% 0.6% 0.6% 0.9% 1.0% 1.1% 0.7% 0.1% Rolling 12 Month Return on Average Shareholders' Equity Excluding Net Unrealized Gains on Fixed Maturities (5 Point Avg) 16.3% 13.1% 13.3% 11.4% 8.3% 10.6% 9.5% 9.6% 6.6% 0.9% Less: Goodwill 8.4% 7.2% 6.6% 5.2% 3.1% 3.1% 2.0% 2.0% 1.4% 0.2% Rolling 12 Month Return on Average Shareholders' Equity Excluding Net Unrealized Gains on Fixed Maturities and Goodwill (5 Point Avg) 24.7% 20.3% 19.9% 16.6% 11.4% 13.7% 11.5% 11.6% 8.0% 1.1% ¹ As Adjusted is a non-GAAP measure, which is comprised by excluding impact of purchase accounting in 2018 and including historical results of Kemper and Infinity in periods prior to acquisition date of July 2, 2018. Earnings Call Presentation – 4Q 2019 19

Non-GAAP Financial Measures Adjusted Consolidated Net Operating Income (Loss) is an after-tax, non-GAAP financial measure computed by excluding from Income (Loss) from Continuing Operations the after-tax impact of 1) income (loss) from change in fair value of equity and convertible securities, 2) net realized gains on sales of investments, 3) net impairment losses recognized in earnings related to investments, 4) acquisition related transaction, integration and other costs, 5) loss from early extinguishment of debt and 6) significant non-recurring or infrequent items that may not be indicative of ongoing operations. Significant non-recurring items are excluded when (a) the nature of the charge or gain is such that it is reasonably unlikely to recur within two years and (b) there has been no similar charge or gain within the prior two years. The most directly comparable GAAP financial measure is Income (Loss) from Continuing Operations. Kemper believes that Adjusted Consolidated Net Operating Income (Loss) provides investors with a valuable measure of its ongoing performance because it reveals underlying operational performance trends that otherwise might be less apparent if the items were not excluded. Income (loss) from change in fair value of equity and convertible securities, net realized gains on sales of investments and net impairment losses recognized in earnings related to investments included in the Company’s results may vary significantly between periods and are generally driven by business decisions and external economic developments such as capital market conditions that impact the values of the Company’s investments, the timing of which is unrelated to the insurance underwriting process. Loss from early extinguishment of debt is driven by the Company’s financing and refinancing decisions and capital needs, as well as external economic developments such as debt market conditions, the timing of which is unrelated to the insurance underwriting process. Acquisition related transaction, integration and other costs may vary significantly between periods and are generally driven by the timing of acquisitions and business decisions which are unrelated to the insurance underwriting process. Significant non-recurring items are excluded because, by their nature, they are not indicative of the Company’s business or economic trends. Earnings Call Presentation – 4Q 2019 20

Non-GAAP Financial Measures Diluted Adjusted Consolidated Net Operating Income (Loss) Per Unrestricted Share is a non-GAAP financial measure computed by dividing Adjusted Consolidated Net Operating Income (Loss) attributed to unrestricted shares by the weighted-average unrestricted shares and equivalent shares outstanding. The most directly comparable GAAP financial measure is Diluted Income (Loss) from Continuing Operations Per Unrestricted Share. Kemper believes that Diluted Adjusted Consolidated Net Operating Income (Loss) Per Unrestricted Share provides investors with a valuable measure of its ongoing performance because it reveals underlying operational performance trends that otherwise might be less apparent if the items were not excluded. Income from change in fair value of equity and convertible securities, net realized gains on sales of investments, net impairment losses recognized in earnings related to investments, and acquisition related transaction, integration and other costs included in Kemper’s results may vary significantly between periods and are generally driven by business decisions and external economic developments such as capital market conditions that impact the values of the company’s investments, the timing of which is unrelated to the insurance underwriting process. For the Three Months Ended Per Unrestricted Share 4Q19 3Q19 2Q19 1Q19 4Q18 Income from Continuing Operations - Diluted $ 1.85 $ 1.91 $ 1.84 $ 2.35 $ 0.08 Net (Income) Loss From: Change in Fair Value of Equity & Convertible Securities (0.46) (0.11) (0.30) (0.77) 0.92 Net Realized Gains on Sales of Investments (0.03) (0.02) (0.25) (0.19) (0.20) Net Impairment Losses Recognized in Earnings 0.02 0.02 0.08 0.04 0.02 Acquisition Related Transaction, Integration and Other Costs 0.07 0.06 0.01 0.07 0.09 Loss from Early Extinguishment of Debt - 0.07 - - - Adj. Consolidated Net Operating Income - Diluted $ 1.45 $ 1.93 $ 1.38 $ 1.50 $ 0.91 Earnings Call Presentation – 4Q 2019 21

Non-GAAP Financial Measures Underlying Combined Ratio is a non-GAAP financial measure. It is computed by adding the Current Year Non-catastrophe Losses and LAE Ratio with the Insurance Expense Ratio. The most directly comparable GAAP financial measure is the Combined Ratio, which is computed by adding total incurred losses and LAE, including the impact of catastrophe losses and loss and LAE reserve development from prior years, with the Insurance Expense Ratio. Kemper believes the underlying combined ratio is useful to investors and is used by management to reveal the trends in the Company’s property and casualty insurance businesses that may be obscured by catastrophe losses and prior-year reserve development. These catastrophe losses cause loss trends to vary significantly between periods as a result of their incidence of occurrence and magnitude, and can have a significant impact on the combined ratio. Prior-year reserve developments are caused by unexpected loss development on historical reserves. Because reserve development relates to the re-estimation of losses from earlier periods, it has no bearing on the performance of our insurance products in the current period. The Company believes it is useful for investors to evaluate these components separately and in the aggregate when reviewing the Company’s underwriting performance. The underlying combined ratio should not be considered a substitute for the combined ratio and does not reflect the overall underwriting profitability of our business. Earnings Call Presentation – 4Q 2019 22

Non-GAAP Financial Measures Underlying Combined Ratio – Continued For the Three Months Ended 4Q19 3Q19 2Q19 1Q19 4Q18 Specialty P&C Insurance Combined Ratio as Reported 93.8% 91.6% 93.5% 89.3% 94.6% Current Year Catastrophe Loss and LAE Ratio (0.5%) (0.3%) (0.6%) (0.1%) (0.1%) Prior Years Non-Catastrophe Losses and LAE 0.5% 0.5% 1.1% 2.5% 0.0% Prior Years Catastrophe Losses and LAE Ratio 0.0% 0.0% 0.0% 0.0% 0.0% Underlying Combined Ratio 93.8% 91.8% 94.0% 91.7% 94.5% Preferred P&C Insurance Combined Ratio as Reported 97.5% 92.4% 103.1% 102.7% 103.9% Current Year Catastrophe Loss and LAE Ratio (6.4%) (6.2%) (12.0%) (8.9%) (11.3%) Prior Years Non-Catastrophe Losses and LAE 3.8% 0.6% 2.3% 2.7% 1.6% Prior Years Catastrophe Losses and LAE Ratio 1.7% 8.1% 0.5% (0.5%) 0.4% Underlying Combined Ratio 96.6% 94.9% 93.9% 96.0% 94.6% Preferred Auto Combined Ratio as Reported 103.4% 101.5% 98.7% 100.8% 103.0% Current Year Catastrophe Loss and LAE Ratio (1.3%) (1.8%) (1.4%) (2.2%) (0.3%) Prior Years Non-Catastrophe Losses and LAE 2.4% 0.4% 3.1% 1.0% 1.9% Prior Years Catastrophe Losses and LAE Ratio 0.0% 0.1% 0.0% 0.1% 0.0% Underlying Combined Ratio 104.5% 100.2% 100.4% 99.7% 104.6% Preferred Home & Other Combined Ratio as Reported 87.0% 77.1% 110.5% 105.7% 105.3% Current Year Catastrophe Loss and LAE Ratio (15.3%) (13.7%) (29.6%) (20.1%) (28.5%) Prior Years Non-Catastrophe Losses and LAE 6.3% 0.8% 0.8% 5.6% 1.1% Prior Years Catastrophe Losses and LAE Ratio 4.9% 21.5% 1.3% (1.6%) 1.1% Underlying Combined Ratio 82.9% 85.7% 83.0% 89.6% 79.0% Earnings Call Presentation – 4Q 2019 23

Non-GAAP Financial Measures As Adjusted for Acquisition amounts are non-GAAP financial measures. For the three months ended September 30, 2019, as adjusted amounts are computed by subtracting the impact of purchase accounting adjustments from the comparable consolidated GAAP financial measure reported by Kemper. For the three months ended September 30, 2018, as adjusted amounts are computed by adding the historical results of Infinity reported on a GAAP basis to the comparable consolidated GAAP financial measure reported by Kemper. The Company believes computing and presenting results on an adjusted basis are useful to investors and are used by management to provide meaningful and comparable year-over-year comparisons. Three Months Ended 31-Dec-19 31-Dec-18 Net Income Kemper - GAAP As Reported $ 124.7 $ 6.5 Less: Impact of Purchase Accounting (4.4) (20.5) As Adjusted 1 $ 129.1 $ 27.0 As Adjusted 1 - Per Diluted Share $ 1.92 $ 0.41 Adjusted Consolidated Net Operating Income (Loss)1 Kemper $ 97.9 $ 59.9 Less: Impact of Purchase Accounting (4.4) (20.5) As Adjusted 1 $ 102.3 $ 80.4 As Adjusted 1 - Per Diluted Share $ 1.52 $ 1.23 Earnings Call Presentation – 4Q 2019 24

Non-GAAP Financial Measures As Adjusted for Acquisition – Continued Specialty P&C Insurance Segment Three Months Ended 31-Dec-19 30-Sep-19 30-Jun-19 31-Mar-19 31-Dec-18 Earned Premiums Kemper Specialty P&C - GAAP As Reported $ 799.7 $ 783.4 $ 766.0 $ 729.3 $ 717.8 Current Year Non-CAT Losses and LAE Kemper Specialty P&C - GAAP As Reported $ 599.5 $ 579.4 $ 579.2 $ 544.3 $ 530.3 Less: Impact of Purchase Accounting Amortization of Fair Value Adjustment to Infinity's Unpaid Loss and LAE 0.8 0.8 1.2 1.5 1.9 As Adjusted 1 $ 598.7 $ 578.6 $ 578.0 $ 542.8 $ 528.4 Insurance Expenses Kemper Specialty P&C - GAAP As Reported $ 150.7 $ 139.2 $ 140.9 $ 124.8 $ 148.0 Less: Impact of Purchase Accounting 5.2 7.3 4.4 (3.9) 24.5 As Adjusted 1 $ 145.5 $ 131.9 $ 136.5 $ 128.7 $ 123.5 As Adjusted 1 Underlying Combined Ratio As Adjusted 1 Underlying Loss & LAE Ratio 74.9% 73.9% 75.5% 74.4% 73.6% As Adjusted 1 Expense Ratio 18.2% 16.8% 17.8% 17.6% 17.2% As Adjusted 1 Underlying Combined Ratio 93.1% 90.7% 93.3% 92.1% 90.8% ¹ As Adjusted is a non-GAAP measure, which is comprised by excluding impact of purchase accounting in 2018 and including historical results of Kemper and Infinity in periods prior to acquisition date of July 2, 2018. Earnings Call Presentation – 4Q 2019 25

Non-GAAP Financial Measures As Adjusted for Acquisition – Continued Specialty Personal Automobile Insurance Three Months Ended 31-Dec-19 30-Sep-19 30-Jun-19 31-Mar-19 31-Dec-18 Earned Premiums Kemper Specialty Auto - GAAP As Reported $ 733.1 $ 719.2 $ 703.7 $ 669.6 $ 660.5 Current Year Non-CAT Losses and LAE Kemper Specialty Auto - GAAP As Reported $ 557.5 $ 538.2 $ 537.0 $ 498.8 $ 492.0 Less: Impact of Purchase Accounting Amortization of Fair Value Adjustment to Infinity's Unpaid Loss and LAE 0.6 0.6 0.9 1.3 1.5 As Adjusted 1 $ 556.9 $ 537.6 $ 536.1 $ 497.5 $ 490.5 Insurance Expenses Kemper Specialty Auto - GAAP As Reported $ 138.1 $ 128.4 $ 128.9 $ 114.7 $ 132.5 Less: Impact of Purchase Accounting 4.5 6.4 3.9 (2.5) 21.8 As Adjusted 1 $ 133.6 $ 122.0 $ 125.0 $ 117.2 $ 110.7 As Adjusted 1 Underlying Combined Ratio As Adjusted 1 Underlying Loss & LAE Ratio 76.0% 74.7% 76.2% 74.3% 74.3% As Adjusted 1 Expense Ratio 18.2% 17.0% 17.8% 17.5% 16.8% As Adjusted 1 Underlying Combined Ratio 94.2% 91.7% 93.9% 91.8% 91.0% ¹ As Adjusted is a non-GAAP measure, which is comprised by excluding impact of purchase accounting in 2018 and including historical results of Kemper and Infinity in periods prior to acquisition date of July 2, 2018. Earnings Call Presentation – 4Q 2019 26

XML

Document and Entity Information	Feb. 10, 2020
Cover page.
Document Type	8-K
Document Period End Date	Feb. 10, 2020
Entity Registrant Name	Kemper Corporation
Entity Central Index Key	0000860748
Amendment Flag	false
Entity File Number	001-18298
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	95-4255452
Entity Address, Address Line One	200 E. Randolph Street
Entity Address, Address Line Two	Suite 3300
Entity Address, City or Town	Chicago
Entity Address, State or Province	IL
Entity Address, Postal Zip Code	60601
City Area Code	312
Local Phone Number	661-4600
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Title of 12(b) Security	Common Stock, par value $0.10 per share
Trading Symbol	KMPR
Security Exchange Name	NYSE
Entity Emerging Growth Company	false