EX-99.2 3 kmpr202212312022ex992suppl.htm EXHIBIT 99.2 INVESTOR SUPPLEMENT Document
Exhibit 99.2

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

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

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

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

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



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



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






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

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

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

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

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


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


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


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





10


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

11


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


12


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


13

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


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

15

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

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

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

18

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

19

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

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


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

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


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


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

 

24


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


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

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


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

27


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


Kemper Corporation
Details of Invested Assets
(Dollars in Millions)
(Unaudited)
 Dec 31, 2022Dec 31, 2021Dec 31, 2020
 Carrying
Value
Percent
of Total1
Carrying
Value
Percent
of Total1
Carrying
Value
Percent
of Total1
Fixed Maturities Reported at Fair Value:
U.S. Government and Government Agencies and Authorities
$528.0 6.0 %$637.4 6.1 %$585.3 5.6 %
States and Political Subdivisions
1,568.9 17.8 1,890.1 18.2 1,589.5 15.2 
Foreign Governments
4.1 — 5.5 0.1 5.2 — 
Corporate Securities:
Bonds and Notes
3,539.4 40.4 4,386.9 42.2 4,425.4 42.5 
Redeemable Preferred Stocks
8.0 0.1 7.4 0.1 7.5 0.1 
Collateralized Loan Obligations953.9 10.9 752.1 7.2 767.7 7.4 
Other Mortgage- and Asset-backed
292.5 3.3 307.5 3.0 225.3 2.2 
Total Fixed Maturities Reported at Fair Value
6,894.8 78.5 7,986.9 76.9 7,605.9 73.0 
Equity Securities Reported at Fair Value:
Preferred Stocks
39.8 0.5 51.8 0.5 59.1 0.6 
Common Stocks
2.1 — 21.8 0.2 10.8 0.1 
Other Equity Interests:
Exchange Traded Funds
12.2 0.1 432.0 4.2 496.6 4.8 
Limited Liability Companies and Limited Partnerships
189.1 2.2 325.0 3.1 292.0 2.8 
Total Equity Securities Reported at Fair Value
243.2 2.8 830.6 8.0 858.5 8.2 
Equity Method Limited Liability Investments
217.0 2.5 241.9 2.3 204.0 2.0 
Alternative Energy Partnership Investments16.3 0.2 39.6 0.4 21.3 0.2 
Short-term Investments at Cost which Approximates Fair Value
278.4 3.2 284.1 2.7 875.4 8.4 
Company Owned Life Insurance586.5 6.7 448.1 4.3 327.4 3.1 
Loans to Policyholders283.4 3.2 286.2 2.8 297.9 2.9 
Other Investments:
Equity Securities Reported at Modified Cost38.4 0.4 32.3 0.3 40.1 0.4 
Convertible Securities at Fair Value43.3 0.5 46.4 0.5 39.9 0.4 
Real Estate at Depreciated Cost93.6 1.1 94.0 0.9 98.7 0.9 
Mortgage Loans91.1 1.0 96.8 0.9 54.6 0.5 
Other3.5 — 0.5 — 0.4 — 
Total Other Investments
269.9 3.0 270.0 2.6 233.7 2.2 
Total Investments
$8,789.5 100.0 %$10,387.4 100.0 %$10,424.1 100.0 %
1 Sum of percentages for individual lines may not equal subtotals and grand total due to rounding.
29

Kemper Corporation
Details of Invested Assets (continued)
(Dollars in Millions)
(Unaudited)
 Dec 31, 2022Dec 31, 2021Dec 31, 2020
 Carrying
Value
Percent
of Total1
Carrying
Value
Percent
of Total1
Carrying
Value
Percent
of Total1
S&P Equivalent Rating for Fixed Maturities
      
AAA, AA, A
$4,896.4 71.0 %$5,351.6 67.0 %$4,759.9 62.6 %
BBB
1,687.4 24.5 2,215.1 27.7 2,355.6 31.0 
BB, B
239.7 3.5 331.0 4.2 353.1 4.6 
CCC or Lower
71.3 1.0 89.2 1.1 137.3 1.8 
Total Investments in Fixed Maturities
$6,894.8 100.0 %$7,986.9 100.0 %$7,605.9 100.0 %
Duration (in Years)
Total Investments in Fixed Maturities
8.2 8.5 7.8 

30


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

 

31


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


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

33

Kemper Corporation
Definitions of Non-GAAP Financial Measures

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

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

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

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

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

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

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

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

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

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

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

Kemper Corporation
As Adjusted for Acquisitions Non-GAAP Financial Measure

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

36

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

37

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

38

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

39