8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): May 8, 2023 

Kemper Corporation

(Exact name of registrant as specified in its charter)

Commission File Number: 001-18298

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

200 E. Randolph Street, Suite 3300, Chicago, IL 60601

(Address of principal executive offices, including zip code)

312-661-4600

(Registrant’s telephone number, including area code)

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the Registrant under any of the following provisions (see General Instruction A.2.below):

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, par value $0.10 per share	KMPR	NYSE
5.875% Fixed-Rate Reset Junior Subordinated Debentures due 2062	KMPB	NYSE

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

Emerging Growth Company ☐

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

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

the Exchange Act.    ¨

Section 2. – Financial Information

Item 2.02. Results of Operations and Financial Condition.

On May 8, 2023, Kemper Corporation ("Kemper" or the "Registrant") issued a press release announcing its financial results for the first quarter of 2023 and the availability of Kemper’s first quarter investor supplement and earnings call presentation on its website, kemper.com. The press release, the investor supplement and the earnings call presentation are furnished as Exhibits 99.1, 99.2 and 99.3, respectively, to this report.

Section 9. – Financial Statements and Exhibits.

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits

99.1 Registrant’s press release dated May 8, 2023.

99.2 First Quarter 2023 Investor Supplement of Kemper Corporation.

99.3 First Quarter 2023 Earnings Call Presentation.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

		Kemper Corporation
Date:	May 8, 2023	/s/    JAMES J. MCKINNEY
		James J. McKinney
		Executive Vice President and Chief Financial Officer (Principal Financial Officer)

EX-99.1

Exhibit 99.1

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

Kemper Reports First Quarter 2023 Operating Results

CHICAGO, May 8, 2023 — Kemper Corporation (NYSE: KMPR) reported a net loss of $80.1 million, or $(1.25) per diluted share, for the first quarter of 2023, compared to a net loss of $86.3 million, or $(1.36) per diluted share, for the first quarter of 2022.

Adjusted Consolidated Net Operating Loss1 was $65.2 million, or $(1.02) per diluted share, for the first quarter of 2023, compared to Adjusted Consolidated Net Operating Loss1 of $51.6 million, or $(0.81) per diluted share, for the first quarter of 2022.

Key themes of the quarter include:

•Profitability impacted by catastrophe losses, prior year adverse development, and higher-than-anticipated frequency

•Excess mortality at or near pre-pandemic levels, albeit sequentially; claims increased in first quarter

•Rate actions continue to earn in at an accelerated pace

•Declared dividend of $0.31 per share

“First quarter results were below our expectations, and we are not satisfied with where we stand today,” said Joseph P. Lacher, Jr., President, CEO and Chairman. “Results were impacted by the combination of elevated catastrophe losses, prior year adverse development, and higher-than-anticipated frequency, and we believe weather was a significant contributor to the frequency increase and episodic in nature. We are taking the necessary steps intended to restore profitability and the inputs we control are trending positively, including increased rates earning in, incremental rate filings, tightened underwriting, and targeted expense reductions. We are relentlessly focused on taking actions intended to make the necessary improvements and deliver long-term value to our shareholders. We continue to expect a return to underwriting profitability by the end of 2023 and to achieve our financial targets in 2024.”

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

	Three Months Ended
(Dollars in Millions, Except Per Share Amounts) (Unaudited)	Mar 31, 2023		Mar 31, 20222
Net Loss	$	(80.1)	$	(86.3)
Adjusted Consolidated Net Operating Loss1	$	(65.2)	$	(51.6)
Impact of Catastrophe Losses and Related Loss Adjustment Expense (LAE) on Net Loss	$	(20.5)	$	(11.0)
Diluted Net Loss Per Share From:
Net Loss	$	(1.25)	$	(1.36)
Adjusted Consolidated Net Operating Loss1	$	(1.02)	$	(0.81)
Impact of Catastrophe Losses and Related LAE on Net Loss Per Share	$	(0.32)	$	(0.17)
2 This press release recasts previously reported financial information for the provisions of Accounting Standards Update No. 2018-12, “Targeted Improvements to the Accounting for Long-Duration Contracts and related amendments” (“LDTI”) adopted as of January 1, 2023, with a transition date of January 1, 2021 under the modified retrospective method.

Revenues

Total revenues for the first quarter of 2023 decreased $75.3 million, or 5.50%, to $1,294.8 million, compared to the first quarter of 2022, mostly driven by $77.4 million of lower Specialty P&C earned premiums due to a decrease in new business resulting from targeted underwriting actions to improve profitability, partially offset by higher average earned premium per exposure from rate increases. The decrease was also driven by $43.5 million of lower Life & Health earned premiums mostly due to the disposition of Kemper Health that was completed in December 2022, and $18.2 million of lower Preferred P&C earned premiums. These decreases were partially offset by $29.9 million of higher revenue from changes in fair value of equity and convertible securities and $17.4 million of higher revenue from changes in fair value of alternative energy partnership investments.

2

Segment Results

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

	Three Months Ended
(Dollars in Millions) (Unaudited)	Mar 31, 2023		Mar 31, 2022
Segment Net Operating Income (Loss):
Specialty Property & Casualty Insurance	$	(58.4)	$	(44.7)
Preferred Property & Casualty Insurance	(9.5)		(6.1)
Life & Health Insurance	13.2		11.6
Total Segment Net Operating Loss	(54.7)		(39.2)
Corporate and Other Net Operating Loss	(10.5)		(12.4)
Adjusted Consolidated Net Operating Loss 1	(65.2)		(51.6)
Net Income (Loss) From:
Change in Fair Value of Equity and Convertible Securities	1.3		(22.3)
Net Realized Investment Gains	5.1		1.2
Impairment Gains (Losses)	1.7		(7.0)
Acquisition and Disposition Related Transaction, Integration, Restructuring and Other Costs	(23.0)		(3.7)
Loss from Early Extinguishment of Debt	—		(2.9)
Net Loss	$	(80.1)	$	(86.3)

The Specialty Property and Casualty Insurance segment reported net operating loss of $58.4 million for the first quarter of 2023, compared to net operating loss of $44.7 million in the first quarter of 2022. The unfavorable results were due primarily to adverse prior year loss and LAE development and underlying losses and LAE as a percentage of earned premium. The segment’s Underlying Combined Ratio1 was 108.0 percent, compared to 108.7 percent in the first quarter of 2022. This improvement is driven primarily by higher average earned premiums per exposure resulting from rate increases mostly offset by higher claims frequency from commercial automobile insurance.

The Preferred Property and Casualty Insurance segment reported net operating loss of $9.5 million for the first quarter of 2023, compared to a net operating loss of $6.1 million in the first quarter of 2022. The unfavorable results were due primarily to higher prior year loss and LAE development and higher levels of catastrophe activity. The segment’s Underlying Combined Ratio1 was 97.1 percent, compared to 105.1 percent in the first quarter of 2022. This improvement is driven primarily by higher average earned premiums per exposure resulting from rate increases and lower frequency of auto claims.

The Life and Health Insurance segment reported net operating income of $13.2 million for the first quarter of 2023, compared to a net operating income of $11.6 million in the first quarter of 2022.

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Capital

Total Shareholders’ Equity at the end of the quarter was $2,646.9 million, a decrease of $23.7 million, or 1 percent, since year-end 2022 primarily driven by the net operating loss for the quarter, partially offset by a reduction in the net accumulated other comprehensive loss mostly driven by a decrease in interest rates. Kemper and its direct non-insurance subsidiaries ended the quarter with cash and investments of $240.6 million, and $520.0 million of available borrowing capacity under the revolving credit agreement.

On February 1, 2023, Kemper announced that its Board of Directors declared a quarterly dividend of $0.31 per share, or $19.4 million. The dividend was paid on February 28, 2023 to its shareholders of record as of February 13, 2023.

Kemper ended the quarter with a book value per share of $41.37, a decrease of 1 percent from $41.79 at the end of 2022. Book Value Per Share Excluding Net Unrealized (Gains) Losses and Changes in the Discount Rate on Future Life Policyholder Benefits1 was $47.83 compared to $49.23 at the end of 2022.

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Unaudited condensed consolidated statements of loss for the three months ended March 31, 2023 and 2022 are presented below.

	Three Months Ended
(Dollars in Millions, Except Per Share Amounts)	Mar 31, 2023		Mar 31, 2022
Revenues:
Earned Premiums	$	1,180.9	$	1,320.0
Net Investment Income	101.8		100.0
Change in Value of Alternative Energy Partnership Investments2	0.7		(16.7)
Other Income	1.2		2.4
Income (Loss) from Change in Fair Value of Equity and Convertible Securities	1.7		(28.2)
Net Realized Investment Gains	6.4		1.5
Impairment Gains (Losses)	2.1		(8.9)
Total Revenues	1,294.8		1,370.1
Expenses:
Policyholders’ Benefits and Incurred Losses and Loss Adjustment Expenses	1,052.0		1,123.2
Insurance Expenses	269.3		304.8
Loss from Early Extinguishment of Debt	—		3.7
Interest and Other Expenses	77.4		54.1
Total Expenses	1,398.7		1,485.8
Loss before Income Taxes	(103.9)		(115.7)
Income Tax Benefit	23.8		29.4
Net Loss	$	(80.1)	$	(86.3)
Net Loss Per Unrestricted Share:
Basic	$	(1.25)	$	(1.36)
Diluted	$	(1.25)	$	(1.36)
Weighted-average Outstanding (Shares in Thousands):
Unrestricted Shares - Basic	63,946.6		63,743.7
Unrestricted Shares and Equivalent Shares - Diluted	63,946.6		63,743.7
Dividends Paid to Shareholders Per Share	$	0.31	$	0.31

2 Income related to Changes in Value of Alternative Energy Partnership Investments was $0.7 million for the three months ended March 31, 2023, compared to a loss of $16.7 million for the same period in 2022. Tax expense related to the Alternative Energy Partnership Investments were $0.3 million for the three months ended March 31, 2023, compared to tax benefits of $7.0 million for the same period in 2022. This resulted in net income of $0.4 million and a net loss of $9.7 million attributable to Alternative Energy Partnership Investments for the three months ended March 31, 2023 and 2022, respectively.

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Unaudited business segment revenues for the three months ended March 31, 2023 and 2022 are presented below.

	Three Months Ended
(Dollars in Millions)	Mar 31, 2023		Mar 31, 2022
REVENUES:
Specialty Property & Casualty Insurance:
Earned Premiums:
Personal Automobile	$	787.9	$	901.7
Commercial Automobile	156.3		119.9
Total Earned Premiums	944.2		1,021.6
Net Investment Income	38.5		34.9
Change in Value of Alternative Energy Partnership Investments	0.4		(8.4)
Other Income	0.9		1.7
Total Specialty Property & Casualty Insurance Revenues	984.0		1,049.8
Preferred Property & Casualty Insurance:
Earned Premiums:
Personal Automobile	78.2		96.0
Homeowners	52.2		51.3
Other Personal	7.0		8.3
Total Earned Premiums	137.4		155.6
Net Investment Income	10.5		12.5
Change in Value of Alternative Energy Partnership Investments	0.1		(3.9)
Total Preferred Property & Casualty Insurance Revenues	148.0		164.2
Life & Health Insurance:
Earned Premiums:
Life	82.2		82.7
Accident & Health	5.9		45.8
Property	11.2		14.3
Total Earned Premiums	99.3		142.8
Net Investment Income	49.8		49.4
Change in Value of Alternative Energy Partnership Investments	0.2		(4.4)
Other Loss	(0.4)		—
Total Life & Health Insurance Revenues	148.9		187.8
Total Segment Revenues	1,280.9		1,401.8
Income (Loss) from Change in Fair Value of Equity and Convertible Securities	1.7		(28.2)
Net Realized Investment Gains	6.4		1.5
Impairment Gains (Losses)	2.1		(8.9)
Other	3.7		3.9
Total Revenues	$	1,294.8	$	1,370.1

6

KEMPER CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(Dollars in Millions)

(Unaudited)

	Mar 31, 2023		Dec 31, 2022
Assets:
Investments:
Fixed Maturities at Fair Value	$	7,189.4	$	6,894.8
Equity Securities at Fair Value	243.6		243.2
Equity Method Limited Liability Investments	218.7		217.0
Alternative Energy Partnership Investments	17.0		16.3
Short-term Investments at Cost which Approximates Fair Value	278.4		278.4
Company-Owned Life Insurance	595.3		586.5
Loans to Policyholders	283.1		283.4
Other Investments	271.8		269.9
Total Investments	9,097.3		8,789.5
Cash	60.6		212.4
Receivables from Policyholders	1,344.0		1,286.6
Other Receivables	249.4		262.6
Deferred Policy Acquisition Costs	651.5		635.6
Goodwill	1,300.3		1,300.3
Current Income Tax Assets	15.0		167.6
Deferred Income Tax Assets	166.0		129.0
Other Assets	519.6		530.0
Total Assets	$	13,403.7	$	13,313.6
Liabilities and Shareholders’ Equity:
Insurance Reserves:
Life & Health	$	3,399.6	$	3,276.2
Property & Casualty	2,721.1		2,756.9
Total Insurance Reserves	6,120.7		6,033.1
Unearned Premiums	1,778.0		1,704.4
Policyholder Contract Liabilities	700.6		701.3
Accrued Expenses and Other Liabilities	770.0		817.3
Long-term Debt, Current and Non-current, at Amortized Cost	1,387.5		1,386.9
Total Liabilities	10,756.8		10,643.0
Shareholders’ Equity:
Common Stock	6.4		6.4
Paid-in Capital	1,828.9		1,812.7
Retained Earnings	1,266.3		1,366.4
Accumulated Other Comprehensive Loss	(454.7)		(514.9)
Total Shareholders’ Equity	2,646.9		2,670.6
Total Liabilities and Shareholders’ Equity	$	13,403.7	$	13,313.6

7

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

	Three Months Ended
(Dollars in Millions)	Mar 31, 2023			Mar 31, 2022
Results of Operations
Net Premiums Written	$	1,022.1		$	1,023.7
Earned Premiums	$	944.2		$	1,021.6
Net Investment Income	38.5			34.9
Change in Value of Alternative Energy Partnership Investments	0.4			(8.4)
Other Income	0.9			1.7
Total Revenues	984.0			1,049.8
Incurred Losses and LAE related to:
Current Year:
Non-catastrophe Losses and LAE	825.4			911.7
Catastrophe Losses and LAE	8.4			2.1
Prior Years:
Non-catastrophe Losses and LAE	31.6			(3.8)
Catastrophe Losses and LAE	(0.5)			0.7
Total Incurred Losses and LAE	864.9			910.7
Insurance Expenses	193.8			199.3
Operating Loss	(74.7)			(60.2)
Income Tax Benefit	16.3			15.5
Segment Net Operating Loss	$	(58.4)		$	(44.7)
Ratios Based On Earned Premiums
Current Year Non-catastrophe Losses and LAE Ratio	87.5		%	89.2		%
Current Year Catastrophe Losses and LAE Ratio	0.9			0.2
Prior Years Non-catastrophe Losses and LAE Ratio	3.3			(0.4)
Prior Years Catastrophe Losses and LAE Ratio	(0.1)			0.1
Total Incurred Loss and LAE Ratio	91.6			89.1
Insurance Expense Ratio	20.5			19.5
Combined Ratio	112.1		%	108.6		%
Underlying Combined Ratio1
Current Year Non-catastrophe Losses and LAE Ratio	87.5		%	89.2		%
Insurance Expense Ratio	20.5			19.5
Underlying Combined Ratio1	108.0		%	108.7		%
Non-GAAP Measure Reconciliation
Combined Ratio	112.1		%	108.6		%
Less:
Current Year Catastrophe Losses and LAE Ratio	0.9			0.2
Prior Years Non-catastrophe Losses and LAE Ratio	3.3			(0.4)
Prior Years Catastrophe Losses and LAE Ratio	(0.1)			0.1
Underlying Combined Ratio1	108.0		%	108.7		%

8

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

	Three Months Ended
(Dollars in Millions)	Mar 31, 2023			Mar 31, 2022
Results of Operations
Net Premiums Written	$	124.0		$	137.4
Earned Premiums	$	137.4		$	155.6
Net Investment Income	10.5			12.5
Change in Value of Alternative Energy Partnership Investments	0.1			(3.9)
Total Revenues	148.0			164.2
Incurred Losses and LAE related to:
Current Year:
Non-catastrophe Losses and LAE	90.4			112.2
Catastrophe Losses and LAE	17.0			11.4
Prior Years:
Non-catastrophe Losses and LAE	6.9			2.1
Catastrophe Losses and LAE	2.9			(3.2)
Total Incurred Losses and LAE	117.2			122.5
Insurance Expenses	43.0			51.2
Operating Loss	(12.2)			(9.5)
Income Tax Benefit	2.7			3.4
Segment Net Operating Loss	$	(9.5)		$	(6.1)
Ratios Based On Earned Premiums
Current Year Non-catastrophe Losses and LAE Ratio	65.8		%	72.2		%
Current Year Catastrophe Losses and LAE Ratio	12.4			7.3
Prior Years Non-catastrophe Losses and LAE Ratio	5.0			1.3
Prior Years Catastrophe Losses and LAE Ratio	2.1			(2.1)
Total Incurred Loss and LAE Ratio	85.3			78.7
Insurance Expense Ratio	31.3			32.9
Combined Ratio	116.6		%	111.6		%
Underlying Combined Ratio1
Current Year Non-catastrophe Losses and LAE Ratio	65.8		%	72.2		%
Insurance Expense Ratio	31.3			32.9
Underlying Combined Ratio1	97.1		%	105.1		%
Non-GAAP Measure Reconciliation
Combined Ratio	116.6		%	111.6		%
Less:
Current Year Catastrophe Losses and LAE Ratio	12.4			7.3
Prior Years Non-catastrophe Losses and LAE Ratio	5.0			1.3
Prior Years Catastrophe Losses and LAE Ratio	2.1			(2.1)
Underlying Combined Ratio1	97.1		%	105.1		%

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

	Three Months Ended
(Dollars in Millions)	Mar 31, 2023		Mar 31, 2022
Results of Operations
Earned Premiums	$	99.3	$	142.8
Net Investment Income	49.8		49.4
Change in Value of Alternative Energy Partnership Investments	0.2		(4.4)
Other Loss	(0.4)		—
Total Revenues	148.9		187.8
Policyholders’ Benefits and Incurred Losses and LAE	69.9		89.9
Insurance Expenses	64.2		85.9
Operating Income	14.8		12.0
Income Tax Expense	(1.6)		(0.4)
Segment Net Operating Income	$	13.2	$	11.6

Use of Non-GAAP Financial Measures

Adjusted Consolidated Net Operating Loss1 is an after-tax, non-GAAP financial measure and is computed by excluding from Net 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 Loss. There were no applicable significant non-recurring items that Kemper excluded from the calculation of Adjusted Consolidated Net Operating Loss1 for the three months ended March 31, 2023 or 2022.

Kemper believes that Adjusted Consolidated Net Operating Loss1 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 and Impairment Gains (Losses) related to investments included in Kemper’s results may vary significantly between periods and are generally driven by business decisions and external economic developments such as capital market conditions that impact the values of the Kemper’s investments, the timing of which is unrelated to the insurance underwriting process. Acquisition and Disposition Related Transaction, Integration, Restructuring and Other Costs may vary significantly between periods and are generally driven by the timing of acquisitions and business decisions which are unrelated to the insurance underwriting process. Debt Extinguishment, Pension and Other Charges relate to (i) loss from early extinguishment of debt, which is driven by Kemper’s financing and refinancing decisions and capital needs, as well as external economic developments such as debt market conditions, the timing of which is unrelated to the insurance underwriting process; (ii) settlement of pension plan obligations which are business decisions made by Kemper, the timing of which is unrelated to the underwriting process; and (iii) other charges that are non-standard, not part of the ordinary course of business, and unrelated to the insurance underwriting process. Significant non-recurring items are excluded because, by their nature, they are not indicative of the Kemper’s business or economic trends. The preceding non-GAAP financial measures should not be considered a substitute for the

10

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

11

A reconciliation of Net Loss to Adjusted Consolidated Net Operating (Loss) 1 for the three months ended March 31, 2023 and 2022 is presented below.

	Three Months Ended
(Dollars in Millions) (Unaudited)	Mar 31, 2023		Mar 31, 2022
Net Loss	$	(80.1)	$	(86.3)
Less Net Income (Loss) From:
Change in Fair Value of Equity and Convertible Securities	1.3		(22.3)
Net Realized Investment Gains	5.1		1.2
Impairment Gains (Losses)	1.7		(7.0)
Acquisition and Disposition Related Transaction, Integration, Restructuring and Other Costs	(23.0)		(3.7)
Debt Extinguishment, Pension and Other Charges	—		(2.9)
Adjusted Consolidated Net Operating Loss 1	$	(65.2)	$	(51.6)

Diluted Adjusted Consolidated Net Operating Loss Per Unrestricted Share1 is a non-GAAP financial measure computed by dividing Adjusted Consolidated Net Operating Loss1 attributed to unrestricted shares by the weighted-average unrestricted shares and equivalent shares outstanding. The most directly comparable GAAP financial measure is Diluted Net Loss Per Unrestricted Share.

A reconciliation of Diluted Net Loss Per Unrestricted Share to Diluted Adjusted Consolidated Net Operating (Loss) Per Unrestricted Share1 for the three March 31, 2023 and 2022 is presented below.

	Three Months Ended
(Unaudited)	Mar 31, 2023		Mar 31, 2022
Diluted Net Loss Per Unrestricted Share	$	(1.25)	$	(1.36)
Less Net Income (Loss) Per Unrestricted Share From:
Change in Fair Value of Equity and Convertible Securities	0.02		(0.35)
Net Realized Investment Gains	0.08		0.02
Impairment Gains (Losses)	0.03		(0.11)
Acquisition and Disposition Related Transaction, Integration, Restructuring and Other Costs	(0.36)		(0.06)
Debt Extinguishment, Pension and Other Charges	—		(0.05)
Diluted Adjusted Consolidated Net Operating Loss Per Unrestricted Share1	$	(1.02)	$	(0.81)

Book Value Per Share Excluding Net Unrealized (Gains) Losses on Fixed Maturitiesand the Change in Discount Rate on Future Life Policyholder Benefits1is 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 the change in discount rate on future life policyholder benefits 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 the change in discount rate on future life policyholder benefits 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.

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A reconciliation of the numerator used in the computation of Book Value Per Share Excluding Net Unrealized (Gains) Losses on Fixed Maturities and the Change in Discount Rate on Future Life Policyholder Benefits1 and Book Value Per Share at March 31, 2023 and December 31, 2022 is presented below.

(Dollars in Millions) (Unaudited)	Mar 31, 2023		Dec 31, 2022
Shareholders’ Equity	$	2,646.9	$	2,670.6
Less: Net Unrealized Losses on Fixed Maturities	(574.2)		(716.8)
Less: Change in Discount Rate on Future Life Policyholder Benefits	154.2		241.1
Shareholders’ Equity Excluding Net Unrealized (Gains) Losses on Fixed Maturities and Change in Discount Rate on Future Life Policyholder Benefits1	$	3,066.9	$	3,146.3

Underlying Combined Ratio1 is a non-GAAP financial measure. It is computed by adding the Current Year Non-catastrophe Losses and LAE Ratio with the Insurance Expense Ratio. The most directly comparable GAAP financial measure is the Combined Ratio, which is computed by adding Total Incurred Losses and LAE Ratio, including the impact of catastrophe losses and loss and LAE reserve development from prior years, with the Insurance Expense Ratio.

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

Conference Call

Kemper will host its conference call to discuss first quarter 2023 results on Monday May 8th, at 5:00 p.m. Eastern (4:00 p.m. Central). The conference call will be accessible via the internet and by telephone at 833.470.1428, access code 670294. To listen via webcast, register online at the investor section of kemper.com at least 15 minutes prior to the webcast to download and install any necessary software.

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

More detailed financial information can be found in Kemper’s Investor Financial Supplement and Earnings Call Presentation for the first quarter of 2023, which is available at the investor section of kemper.com.

About Kemper

The Kemper family of companies is one of the nation’s leading specialized insurers. With approximately $13 billion in assets, Kemper is improving the world of insurance by providing affordable and easy-to-use personalized solutions to individuals, families and businesses through its Auto, Personal Insurance, and Life brands. Kemper serves over 5.3 million policies, is represented by approximately 26,000 agents and brokers, and has approximately 9,100 associates dedicated to meeting the ever-changing needs of its customers.

Learn more about Kemper at kemper.com.

Caution Regarding Forward-Looking Statements

This press release may contain or incorporate by reference information that includes or is based on forward-looking statements within the meaning of the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995. We caution investors that these forward-looking statements are not guarantees of future performance,

13

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;

•changes in the interest rate environment;

•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”).

Kemper assumes no obligation to publicly correct or update any forward-looking statements as a result of events or developments subsequent to the date of this press release.

###

Contacts
Investors: Karen Guerra	312.668.9720 or investors@kemper.com
Media: Barbara Ciesemier	312.661.4521 or bciesemier@kemper.com

14

EX-99.2

Exhibit 99.2

Investor Supplement

First Quarter 2023

The financial statements and financial exhibits included herein are unaudited. This supplement recasts previously reported financial information for the provisions of Accounting Standards Update No. 2018-12, “Targeted Improvements to the Accounting for Long-Duration Contracts and related amendments” (“LDTI”) adopted as of January 1, 2023, with a transition date of January 1, 2021 under the modified retrospective method.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;

•changes in the interest rate environment;

•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”).

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 33-34.

Kemper Corporation

Investor Supplement

First Quarter 2023

Table of Contents

	Page
Consolidated Impacts of Adoption of Targeted Improvements to Accounting for Long-Duration Contracts	2
Consolidated Financial Highlights	3
Consolidated Statements of Loss	4
Consolidated Balance Sheets	5
Consolidated Statements of Cash Flows	6-7
Capital Metrics	8-9
Debt Outstanding, FHLB Advances and Ratings	10
Segment Summary Results:
Revenues	11
Operating Loss	12
Net Operating Loss	12
Catastrophe Frequency and Severity	13
Specialty Property & Casualty Insurance Segment - Results of Operations and Selected Financial Information	14-15
Personal Automobile Insurance	16
Commercial Automobile Insurance	17
Preferred Property & Casualty Insurance Segment - Results of Operations and Selected Financial Information	18-19
Personal Automobile Insurance	20
Homeowners and Other Personal Insurance	21
Homeowners Insurance	22
Other Personal Insurance	23
Life & Health Insurance Segment - Results of Operations and Selected Financial Information	24
Life Insurance	25
Accident and Health Insurance	25
Property Insurance	26
Expenses	27
Details of Investment Performance	28
Details of Invested Assets	29-30
Investment Concentration	31
Municipal Bond Securities	32
Investments in Limited Liability Companies and Limited Partnerships	33
Definitions of Non-GAAP Financial Measures	34-35

Kemper Corporation

Consolidated Impacts of Adoption of Targeted Improvements to Accounting for Long-Duration Contracts

(Dollars in Millions, Except Per Share Amounts)

(Unaudited)

The Company adopted LDTIon a modified retrospective basis as of January 1, 2023, such that those balances were adjusted to conform to ASU 2018-12 on January 1, 2021. As a result of the adoption of LDTI, beginning retained earnings was reduced by $25.1 million and Accumulated Other Comprehensive Income (“AOCI”) was reduced by $1,030.3 million as of January 1, 2021.

The following summarizes the increase (decrease) to earnings and earnings per share as a result of the adoption of LDTI.

	For the Three Months Ended																For the Year Ended
	Dec 31, 2022		Sep 30, 2022		Jun 30, 2022		Mar 31, 2022		Dec 31, 2021		Sep 30, 2021		Jun 30, 2021		Mar 31, 2021		Dec 31, 2022		Dec 31, 2021
LDTI Impacts to Net Income (Loss)	$	2.2	$	1.4	$	2.5	$	8.5	$	8.2	$	(4.0)	$	(1.7)	$	(5.7)	$	14.6	$	(3.2)
LDTI Impacts to Adjusted Consolidated Net Income (Loss)	$	2.2	$	1.4	$	2.5	$	8.5	$	8.2	$	(4.0)	$	(1.7)	$	(5.7)	$	14.6	$	(3.2)
LDTI Impact to Income (Loss) Per Unrestricted Share:
Basic - Net Income (Loss)	$	0.03	$	0.02	$	0.04	$	0.13	$	0.13	$	(0.06)	$	(0.03)	$	(0.09)	$	0.22	$	(0.05)
Basic - Adjusted Consolidated Net Income (Loss)	$	0.03	$	0.02	$	0.04	$	0.13	$	0.13	$	(0.06)	$	(0.03)	$	(0.09)	$	0.22	$	(0.05)
Diluted - Net Income (Loss)	$	0.03	$	0.02	$	0.04	$	0.13	$	0.13	$	(0.06)	$	(0.03)	$	(0.09)	$	0.22	$	(0.05)
Diluted - Adjusted Consolidated Net Income (Loss)	$	0.03	$	0.02	$	0.04	$	0.13	$	0.13	$	(0.06)	$	(0.03)	$	(0.09)	$	0.22	$	(0.05)

The following summarizes the increase (decrease) to Shareholders’ Equity as a result of the adoption of LDTI.

	As of
	Dec 31, 2022		Sep 30, 2022		Jun 30, 2022		Mar 31, 2022		Dec 31, 2021		Sep 30, 2021		Jun 30, 2021		Mar 31, 2021		Jan 1, 2021
Retained Earnings	$	(13.7)	$	(15.9)	$	(17.3)	$	(19.8)	$	(28.3)	$	(36.5)	$	(32.5)	$	(30.8)	$	(25.1)
Changes in the Discount Rate on Future Life Policyholder Benefits (AOCI)	241.1		272.8		11.4		(405.5)		(849.7)		(823.9)		(852.9)		(626.1)		(1,030.3)
Increase (Decrease) in Shareholders’ Equity	$	227.4	$	256.9	$	(5.9)	$	(425.3)	$	(878.0)	$	(860.4)	$	(885.4)	$	(656.9)	$	(1,055.4)

Kemper Corporation

Consolidated Financial Highlights

(Dollars in Millions, Except Per Share Amounts)

(Unaudited)

	Three Months Ended
	Mar 31, 2023			Dec 31, 2022			Sep 30, 2022			Jun 30, 2022			Mar 31, 2022
For Period Ended
Earned Premiums	$	1,180.9		$	1,264.9		$	1,290.9		$	1,337.6		$	1,320.0
Net Investment Income	101.8			106.3			97.8			118.5			100.0
Change in Value of Alternative Energy Partnership Investments	0.7			1.3			0.4			(4.9)			(16.7)
Other Income	1.2			1.9			4.0			0.9			2.4
Income (Loss) from Change in Fair Value of Equity and Convertible Securities	1.7			—			(11.2)			(40.5)			(28.2)
Net Realized Investment Gains (Losses)	8.5			0.2			(20.4)			6.1			(7.4)
Total Revenues	$	1,294.8		$	1,374.6		$	1,361.5		$	1,417.7		$	1,370.1
Net Loss	$	(80.1)		$	(53.3)		$	(74.8)		$	(72.2)		$	(86.3)
Adjusted Consolidated Net Operating Loss1	$	(65.2)		$	(24.4)		$	(29.1)		$	(37.2)		$	(51.6)
Per Unrestricted Common Share Amounts:
Basic:
Net Loss	$	(1.25)		$	(0.84)		$	(1.17)		$	(1.13)		$	(1.36)
Adjusted Consolidated Net Operating Loss1	$	(1.02)		$	(0.38)		$	(0.46)		$	(0.58)		$	(0.81)
Diluted:
Net Loss	$	(1.25)		$	(0.84)		$	(1.17)		$	(1.13)		$	(1.36)
Adjusted Consolidated Net Operating Loss1	$	(1.02)		$	(0.38)		$	(0.46)		$	(0.58)		$	(0.81)
Dividends Paid to Shareholders Per Share	$	0.31		$	0.31		$	0.31		$	0.31		$	0.31
At Period End
Total Assets	$	13,403.7		$	13,313.6		$	13,399.9		$	13,964.2		$	14,667.7
Insurance Reserves	$	6,120.7		$	6,033.1		$	5,940.1		$	6,343.5		$	6,864.3
Debt	$	1,387.5		$	1,386.9		$	1,386.4		$	1,385.8		$	1,385.2
Shareholders’ Equity	$	2,646.9		$	2,670.6		$	2,694.5		$	2,844.1		$	2,969.2
Shareholders’ Equity Excluding Goodwill1,2	$	1,346.6		$	1,370.3		$	1,395.7		$	1,532.1		$	1,657.2
Common Shares Issued and Outstanding (In Millions)	63.982			63.913			63.884			63.850			63.800
Book Value Per Share2	$	41.37		$	41.79		$	42.18		$	44.54		$	46.54
Book Value Per Share Excluding Goodwill1,2	$	21.05		$	21.44		$	21.85		$	24.00		$	25.97
Book Value Per Share Excluding Net Unrealized (Gains) Losses on Fixed Maturities and Changes in the Discount Rate on Future Life Policyholder Benefits1,2	$	47.93		$	49.23		$	50.16		$	51.76		$	53.11
Book Value Per Share Excluding Net Unrealized (Gains) Losses on Fixed Maturities, Changes in the Discount Rate on Future Life Policyholder Benefits and Goodwill1,2	$	27.61		$	28.88		$	29.83		$	31.21		$	32.55
Debt to Total Capitalization2	34.4		%	34.2		%	34.0		%	32.8		%	31.8		%
Rolling 12 Months Return on 5-point Average Shareholders Equity2,3	(10.1)		%	(10.0)		%	(11.1)		%	(10.7)		%	(9.9)		%
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 Loss

(Dollars in Millions, Except Per Share Amounts)

(Unaudited)

	Three Months Ended
	Mar 31, 2023		Dec 31, 2022		Sep 30, 2022		Jun 30, 2022		Mar 31, 2022
Revenues:
Earned Premiums	$	1,180.9	$	1,264.9	$	1,290.9	$	1,337.6	$	1,320.0
Net Investment Income	101.8		106.3		97.8		118.5		100.0
Change in Value of Alternative Energy Partnership Investments	0.7		1.3		0.4		(4.9)		(16.7)
Other Income	1.2		1.9		4.0		0.9		2.4
Income (Loss) from Change in Fair Value of Equity and Convertible Securities	1.7		—		(11.2)		(40.5)		(28.2)
Net Realized Investment Gains (Losses)	6.4		3.9		(12.1)		11.0		1.5
Impairment Gains (Losses)	2.1		(3.7)		(8.3)		(4.9)		(8.9)
Total Revenues	1,294.8		1,374.6		1,361.5		1,417.7		1,370.1
Expenses:
Policyholders’ Benefits and Incurred Losses and Loss Adjustment Expenses	1,052.0		1,073.0		1,085.3		1,151.1		1,123.2
Insurance Expenses	269.3		288.0		300.5		307.7		304.8
Loss from Early Extinguishment of Debt	—		—		—		—		3.7
Interest and Other Expenses	77.4		86.5		63.5		53.5		54.1
Total Expenses	1,398.7		1,447.5		1,449.3		1,512.3		1,485.8
Loss before Income Taxes	(103.9)		(72.9)		(87.8)		(94.6)		(115.7)
Income Tax Benefit	23.8		19.6		13.0		22.4		29.4
Net Loss	$	(80.1)	$	(53.3)	$	(74.8)	$	(72.2)	$	(86.3)
Loss Per Unrestricted Share:
Basic	$	(1.25)	$	(0.84)	$	(1.17)	$	(1.13)	$	(1.36)
Diluted	$	(1.25)	$	(0.84)	$	(1.17)	$	(1.13)	$	(1.36)
Net Loss Per Unrestricted Share:
Basic	$	(1.25)	$	(0.84)	$	(1.17)	$	(1.13)	$	(1.36)
Diluted	$	(1.25)	$	(0.84)	$	(1.17)	$	(1.13)	$	(1.36)
Dividends Paid to Shareholders Per Share	$	0.31	$	0.31	$	0.31	$	0.31	$	0.31
Weighted Average Unrestricted Common Shares Outstanding (in Millions)	63.947		63.888		63.853		63.816		63.744

4

Kemper Corporation

Consolidated Balance Sheets

(Dollars in Millions)

(Unaudited)

	Mar 31, 2023		Dec 31, 2022		Sep 30, 2022		Jun 30, 2022		Mar 31, 2022
Assets:
Investments:
Fixed Maturities at Fair Value	$	7,189.4	$	6,894.8	$	6,577.1	$	7,218.8	$	7,783.9
Equity Securities at Fair Value	243.6		243.2		322.7		395.0		571.5
Equity Method Limited Liability Investments	218.7		217.0		226.0		228.9		230.0
Alternative Energy Partnerships	17.0		16.3		16.9		17.0		22.4
Short-term Investments at Cost which Approximates Fair Value	278.4		278.4		357.2		230.2		243.8
Company-Owned Life Insurance	595.3		586.5		578.6		566.2		556.4
Loans to Policyholders	283.1		283.4		283.2		282.3		284.7
Other Investments	271.8		269.9		274.2		276.9		275.4
Total Investments	9,097.3		8,789.5		8,635.9		9,215.3		9,968.1
Cash	60.6		212.4		249.2		348.6		297.3
Receivables from Policyholders	1,344.0		1,286.6		1,345.8		1,375.1		1,404.5
Other Receivables	249.4		262.6		228.7		206.5		203.4
Deferred Policy Acquisition Costs	651.5		635.6		645.1		690.1		689.6
Goodwill	1,300.3		1,300.3		1,298.8		1,312.0		1,312.0
Current Income Tax Assets	15.0		167.6		165.1		200.8		183.0
Deferred Income Tax Assets	166.0		129.0		113.7		58.7		43.4
Assets Held-for-Sale	—		—		172.8		—		—
Other Assets	519.6		530.0		544.8		557.1		566.4
Total Assets	$	13,403.7	$	13,313.6	$	13,399.9	$	13,964.2	$	14,667.7
Liabilities and Shareholders’ Equity:
Insurance Reserves:
Life and Health	$	3,399.6	$	3,276.2	$	3,219.8	$	3,585.1	$	4,104.2
Property and Casualty	2,721.1		2,756.9		2,720.3		2,758.4		2,760.1
Total Insurance Reserves	6,120.7		6,033.1		5,940.1		6,343.5		6,864.3
Unearned Premiums	1,778.0		1,704.4		1,794.8		1,854.4		1,890.5
Policyholder Contract Liabilities	700.6		701.3		704.0		704.5		655.0
Deferred Income Tax Liabilities	—		—		—		—		—
Liabilities Held-for-Sale	—		—		84.8		—		—
Accrued Expenses and Other Liabilities	770.0		817.3		795.3		831.9		903.5
Long-term Debt, Current and Non-current, at Amortized Cost	1,387.5		1,386.9		1,386.4		1,385.8		1,385.2
Total Liabilities	10,756.8		10,643.0		10,705.4		11,120.1		11,698.5
Shareholders’ Equity:
Common Stock	6.4		6.4		6.4		6.4		6.4
Paid-in Capital	1,828.9		1,812.7		1,822.2		1,812.5		1,803.1
Retained Earnings	1,266.3		1,366.4		1,439.7		1,534.6		1,627.5
Accumulated Other Comprehensive (Loss) Income	(454.7)		(514.9)		(573.8)		(509.4)		(467.8)
Total Shareholders’ Equity	2,646.9		2,670.6		2,694.5		2,844.1		2,969.2
Total Liabilities and Shareholders’ Equity	$	13,403.7	$	13,313.6	$	13,399.9	$	13,964.2	$	14,667.7

5

Kemper Corporation Consolidated Statements of Cash Flows (Dollars in Millions)  (Unaudited)
	Three Months Ended
	Mar 31, 2023		Mar 31, 2022
Cash Flows from Operating Activities:
Net Loss	$	(80.1)	$	(86.3)
Adjustments to Reconcile Net (Loss) Income to Net Cash Provided by (Used in) Operating Activities:
Net Realized Investment Gains	(6.4)		(1.5)
Impairment (Gains) Losses	(2.1)		8.9
Depreciation and Amortization of Property, Equipment and Software	11.9		13.4
Amortization of Intangible Assets Acquired	4.3		6.2
Loss from Early Extinguishment of Debt	—		3.7
Change in Accumulated Undistributed Earnings of Equity Method Limited Liability Investments	0.8		(5.8)
Loss from Change in Value of Alternative Energy Partnership Investments	(0.7)		16.7
(Increase) Decrease in Value of Equity and Convertible Securities	(1.7)		28.2
Changes in:
Receivables from Policyholders	(57.4)		14.2
Reinsurance Recoverables	4.1		(0.3)
Deferred Policy Acquisition Costs	(15.9)		(1.6)
Insurance Reserves	(21.8)		(8.7)
Unearned Premiums	73.6		(8.2)
Income Taxes	106.2		(28.2)
Other Assets and Liabilities	(9.6)		31.1
Net Cash Provided by (Used in) Operating Activities	5.2		(18.2)
Cash Flows from Investing Activities:
Proceeds from the Sales, Calls and Maturities of Fixed Maturities	154.0		128.6
Proceeds from the Sales or Paydowns of Investments:
Equity Securities	19.5		249.7
Mortgage Loans	18.6		22.8
Other Investments	2.6		20.5
Purchases of Investments:
Fixed Maturities	(293.3)		(527.2)
Equity Securities	(13.2)		(21.3)
Real Estate Investments	(0.2)		—
Corporate-Owned Life Insurance	—		(100.0)
Mortgage Loans	(13.3)		(21.3)
Other Investments	(4.7)		(1.9)
Net Sales of Short-term Investments	0.7		40.3
Acquisition of Software and Long-lived Assets	(10.0)		(16.0)
Other	1.1		0.7
Net Cash Used in Investing Activities	(138.2)		(225.1)

6

Kemper Corporation Consolidated Statements of Cash Flows (Dollars in Millions)  (Unaudited)
	Three Months Ended
	Mar 31, 2023		Mar 31, 2022
Net Cash Provided by (Used in) Investing Activities (Carryforward from page 6)	$	(138.2)	$	(225.1)
Cash Flows from Financing Activities:
Repayment of Long-term Debt	—		(280.0)
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 Obligations	89.3		208.6
Repayment of Policyholder Contract Obligations	(90.0)		(57.8)
Proceeds from Shares Issued under Employee Stock Purchase Plan	1.0		1.3
Dividends and Dividend Equivalents Paid	(19.4)		(19.8)
Other	0.3		0.3
Net Cash (Used in) Provided by Financing Activities	(18.8)		392.4
Net (decrease) increase in cash	(151.8)		149.1
Cash, Beginning of Year	212.4		148.2
Cash, End of Period	$	60.6	$	297.3

7

Kemper Corporation Capital Metrics (Dollars and Shares in Millions, Except Per Share Amounts) (Unaudited)
	Mar 31, 2023			Dec 31, 2022			Sep 30, 2022			Jun 30, 2022			Mar 31, 2022
Book Value Per Share
Numerator
Shareholders’ Equity	$	2,646.9		$	2,670.6		$	2,694.5		$	2,844.1		$	2,969.2
Less: Goodwill	(1,300.3)			(1,300.3)			(1,298.8)			(1,312.0)			(1,312.0)
Shareholders’ Equity Excluding Goodwill1	$	1,346.6		$	1,370.3		$	1,395.7		$	1,532.1		$	1,657.2
Shareholders’ Equity	$	2,646.9		$	2,670.6		$	2,694.5		$	2,844.1		$	2,969.2
Less: Net Unrealized Losses on Fixed Maturities	574.2			716.8			782.7			472.2			13.7
Less: Changes in the Discount Rate on Future Life Policyholder Benefits	(154.2)			(241.1)			(272.8)			(11.4)			405.5
Shareholders’ Equity Excluding Net Unrealized Losses on Fixed Maturities and Changes in the Discount Rate on Future Life Policyholder Benefits1	$	3,066.9		$	3,146.3		$	3,204.4		$	3,304.9		$	3,388.4
Less: Goodwill	(1,300.3)			(1,300.3)			(1,298.8)			(1,312.0)			(1,312.0)
Shareholders’ Equity Excluding Net Unrealized Losses on Fixed Maturities, Changes in the Discount Rate on Future Life Policyholder Benefits and Goodwill1	$	1,766.6		$	1,846.0		$	1,905.6		$	1,992.9		$	2,076.4
Denominator
Common Shares Issued and Outstanding	63.982			63.913			63.884			63.850			63.800
Book Value Per Share	$	41.37		$	41.79		$	42.18		$	44.54		$	46.54
Book Value Per Share Excluding Goodwill1	$	21.05		$	21.44		$	21.85		$	24.00		$	25.97
Book Value Per Share Excluding Net Unrealized Losses on Fixed Maturities and Changes in the Discount Rate on Future Life Policyholder Benefits1	$	47.93		$	49.23		$	50.16		$	51.76		$	53.11
Book Value Per Share Excluding Net Unrealized Losses on Fixed Maturities, Changes in the Discount Rate on Future Life Policyholder Benefits and Goodwill1	$	27.61		$	28.88		$	29.83		$	31.21		$	32.55
Return on Shareholders’ Equity
Numerator
Rolling 12 Months Net Loss	$	(280.4)		$	(286.6)		$	(330.9)		$	(335.4)		$	(327.5)
Denominator (5-point Average)
5-point Average Shareholders’ Equity	$	2,765.1		$	2,861.6		$	2,985.7		$	3,130.9		$	3,298.5
Rolling 12 Months Return on Average Shareholders' Equity (5-point Average)	(10.1)		%	(10.0)		%	(11.1)		%	(10.7)		%	(9.9)		%
Return on Shareholders’ Equity Excluding Goodwill1
Denominator (5-point Average)
5-point Average Shareholders’ Equity Excluding Goodwill1	$	1,460.4		$	1,554.6		$	1,676.3		$	1,818.9		$	2,026.2
Rolling 12 Months Return on Average Shareholders' Equity Excluding Goodwill (5-point Average)1	(19.2)		%	(18.4)		%	(19.7)		%	(18.4)		%	(16.2)		%
Return on Shareholders’ Equity Excluding Net Unrealized (Gains) Losses on Fixed Maturities and Changes in the Discount Rate on Future Life Policyholder Benefits1
Denominator (5-point Average)
5-point Average Shareholders’ Equity Excluding Net Unrealized (Gains) Losses on Fixed Maturities and Changes in the Discount Rate on Future Life Policyholder Benefits1	$	3,277.0		$	3,053.0		$	2,928.3		$	2,798.9		$	2,784.5
Rolling 12 Months Return on Average Shareholders' Equity Excluding Net Unrealized (Gains) Losses on Fixed Maturities and Changes in the Discount Rate on Future Life Policyholder Benefits (5-point Average)1	(8.6)		%	(9.4)		%	(11.3)		%	(12.0)		%	(11.8)		%

8

Kemper Corporation Capital Metrics (Dollars and Shares in Millions, Except Per Share Amounts) (Unaudited)
	Mar 31, 2023			Dec 31, 2022			Sep 30, 2022			Jun 30, 2022			Mar 31, 2022
Return on Shareholders’ Equity Excluding Net Unrealized (Gains) Losses on Fixed Maturities, Changes in the Discount Rate on Future Life Policyholder Benefits, and Goodwill1
Denominator (5-point Average)
5-point Average Shareholders’ Equity Excluding Net Unrealized Losses on Fixed Maturities, Changes in the Discount Rate on Future Life Policyholder Benefits and Goodwill1	$	1,972.3		$	1,746.0		$	1,619.0		$	1,487.0		$	1,512.2
Rolling 12 Months Return on Average Shareholders' Equity Excluding Net Unrealized Losses on Fixed Maturities, Changes in the Discount Rate on Future Life Policyholder Benefits and Goodwill (5-point Average)1	(14.2)		%	(16.4)		%	(20.4)		%	(22.6)		%	(21.7)		%
1 Non-GAAP financial measure. See definitions beginning on page 34.
Debt and Total Capitalization
Debt	$	1,387.5		$	1,386.9		$	1,386.4		$	1,385.8		$	1,385.2
Shareholders’ Equity	2,646.9			2,670.6			2,694.5			2,844.1			2,969.2
Total Capitalization	$	4,034.4		$	4,057.5		$	4,080.9		$	4,229.9		$	4,354.4
Ratio of Debt to Shareholders’ Equity	52.4		%	51.9		%	51.5		%	48.7		%	46.7		%
Ratio of Debt to Total Capitalization	34.4		%	34.2		%	34.0		%	32.8		%	31.8		%
Debt	$	1,387.5		$	1,386.9		$	1,386.4		$	1,385.8		$	1,385.2
Shareholders’ Equity	$	2,646.9		$	2,670.6		$	2,694.5		$	2,844.1		$	2,969.2
Less: Accumulated Other Comprehensive Income (Loss)	(454.7)			(514.9)			(573.8)			(509.4)			(467.8)
Shareholders’ Equity Excluding Accumulated Other Comprehensive Income (Loss)	$	3,101.6		$	3,185.5		$	3,268.3		$	3,353.5		$	3,437.0
Total Capitalization Excluding Accumulated Other Comprehensive Income (Loss)	$	4,489.1		$	4,572.4		$	4,654.7		$	4,739.3		$	4,822.2
Ratio of Debt to Shareholders’ Equity Excluding Accumulated Other Comprehensive Income (Loss)	44.7		%	43.5		%	42.4		%	41.3		%	40.3		%
Ratio of Debt to Total Capitalization Excluding Accumulated Other Comprehensive Income (Loss)	30.9		%	30.3		%	29.8		%	29.2		%	28.7		%
Parent Company Liquidity3
Kemper Holding Company Cash and Investments1	$	240.6		$	417.6		$	449.8		$	275.9		$	318.3
Borrowings Available Under Credit Agreement	520.0			600.0			600.0			600.0			600.0
Parent Company Liquidity	$	760.6		$	1,017.6		$	1,049.8		$	875.9		$	918.3
Capital Returned to Shareholders
Cash Dividends Paid 2	$	19.4		$	20.1		$	20.1		$	20.6		$	19.6
1 Includes Kemper's direct non-insurance subsidiaries
2 Three Months Ended
3 Excludes borrowings available from subsidiaries

9

Kemper Corporation

Debt Outstanding, FHLB Advances and Ratings

(Dollars in Millions)

(Unaudited)

	Mar 31, 2023		Dec 31, 2022		Sep 30, 2022		Jun 30, 2022		Mar 31, 2022
Kemper Corporation:
Senior Notes at Amortized Cost:
4.350% Senior Notes due February 15, 2025	449.4		449.3		449.3		449.2		449.1
2.400% Senior Notes due September 30, 2030	396.7		396.6		396.5		396.4		396.3
3.800% Senior Notes due 2032	395.6		395.5		395.3		395.2		395.1
5.875% Fixed-Rate Reset Junior Subordinated Debentures Due 2062 at Amortized Cost	145.8		145.5		145.3		145.0		144.7
Long-term Debt Outstanding	$	1,387.5	$	1,386.9	$	1,386.4	$	1,385.8	$	1,385.2
Federal Home Loan Bank Advances to Insurance Subsidiaries:
Reported as Policyholder Contract Liabilities:
Federal Home Loan Bank of Chicago	$	601.0	$	601.0	$	602.6	$	602.8	$	553.1
Reported as Debt Outstanding:
Federal Home Loan Bank of Dallas	$	—	$	—	$	—	$	—	$	—
Federal Home Loan Bank of Chicago	$	—	$	—	$	—	$	—	$	—
Federal Home Loan Bank of San Francisco	$	—	$	—	$	—	$	—	$	—
	A.M. Best		Moody’s		S&P		Fitch
As of Date of Financial Supplement
Kemper Debt Ratings:
Senior Unsecured Debt	bbb-		Baa3		BBB-		BBB
Junior Unsecured Debt	bb		Ba1		BB		BB+
Insurance Company Financial Strength Ratings:
Trinity Universal Insurance Company	A-		A3		A-		A
United Insurance Company of America	A-		A3		A-		A-

10

Kemper Corporation

Segment Revenues

(Dollars in Millions)

(Unaudited)

	Three Months Ended
	Mar 31, 2023		Dec 31, 2022		Sep 30, 2022		Jun 30, 2022		Mar 31, 2022
Revenues:
Specialty Property & Casualty Insurance:
Earned Premiums:
Personal Automobile	$	787.9	$	830.4	$	858.8	$	905.8	$	901.7
Commercial Automobile	156.3		151.2		140.7		137.9		119.9
Total Specialty Property & Casualty Insurance Earned Premiums	944.2		981.6		999.5		1,043.7		1,021.6
Net Investment Income	38.5		37.9		33.9		34.0		34.9
Change in Value of Alternative Energy Partnership Investments	0.4		0.7		0.3		(2.5)		(8.4)
Other Income	0.9		1.0		2.3		1.0		1.7
Total Specialty Property & Casualty Insurance Revenues	984.0		1,021.2		1,036.0		1,076.2		1,049.8
Preferred Property & Casualty Insurance:
Earned Premiums:
Personal Automobile	78.2		84.2		89.5		94.0		96.0
Homeowners	52.2		49.1		51.9		47.7		51.3
Other Personal	7.0		7.4		7.9		8.2		8.3
Total Preferred Property & Casualty Insurance Earned Premiums	137.4		140.7		149.3		149.9		155.6
Net Investment Income	10.5		13.5		11.8		11.9		12.5
Change in Value of Alternative Energy Partnership Investments	0.1		0.3		—		(1.1)		(3.9)
Total Preferred Property & Casualty Insurance Revenues	148.0		154.5		161.1		160.7		164.2
Life & Health Insurance:
Earned Premiums:
Life	82.2		99.0		84.3		86.8		82.7
Accident and Health	5.9		31.4		45.9		45.1		45.8
Property	11.2		12.2		11.9		12.1		14.3
Total Life & Health Insurance Earned Premiums	99.3		142.6		142.1		144.0		142.8
Net Investment Income	49.8		52.6		52.6		61.9		49.4
Change in Value of Alternative Energy Partnership Investments	0.2		0.3		0.1		(1.3)		(4.4)
Other (Loss) Income	(0.4)		0.2		—		(0.8)		—
Total Life & Health Insurance Revenues	148.9		195.7		194.8		203.8		187.8
Total Segment Revenues	1,280.9		1,371.4		1,391.9		1,440.7		1,401.8
Income (Loss) from Change in Fair Value of Equity and Convertible Securities	1.7		—		(11.2)		(40.5)		(28.2)
Net Realized Investment Gains (Losses)	6.4		3.9		(12.1)		11.0		1.5
Impairment Gains (Losses)	2.1		(3.7)		(8.3)		(4.9)		(8.9)
Other	3.7		3.0		1.2		11.4		3.9
Total Revenues	$	1,294.8	$	1,374.6	$	1,361.5	$	1,417.7	$	1,370.1

11

Kemper Corporation

Segment Operating Results

(Dollars in Millions)

(Unaudited)

	Three Months Ended
	Mar 31, 2023		Dec 31, 2022		Sep 30, 2022		Jun 30, 2022		Mar 31, 2022
Segment Operating Income (Loss):
Specialty Property & Casualty Insurance	$	(74.7)	$	(46.5)	$	(39.2)	$	(51.0)	$	(60.2)
Preferred Property & Casualty Insurance	(12.2)		(2.0)		(3.3)		(21.6)		(9.5)
Life & Health Insurance	14.8		26.5		15.6		23.9		12.0
Total Segment Operating Loss	(72.1)		(22.0)		(26.9)		(48.7)		(57.7)
Other	(12.9)		(15.5)		(16.6)		(1.6)		(14.0)
Corporate and Other Operating Loss	(12.9)		(15.5)		(16.6)		(1.6)		(14.0)
Total Operating Loss	(85.0)		(37.5)		(43.5)		(50.3)		(71.7)
Income From:
Change in Fair Value of Equity and Convertible Securities	1.7		—		(11.2)		(40.5)		(28.2)
Net Realized Investment Gains (Losses)	6.4		3.9		(12.1)		11.0		1.5
Impairment Losses	2.1		(3.7)		(8.3)		(4.9)		(8.9)
Acquisition and Disposition Related Transaction, Integration, Restructuring and Other Costs	(29.1)		(35.6)		(12.7)		(9.9)		(4.7)
Loss from Early Extinguishment of Debt	—		—		—		—		(3.7)
Loss before Income Taxes	$	(103.9)	$	(72.9)	$	(87.8)	$	(94.6)	$	(115.7)
Segment Net Operating Income (Loss):
Specialty Property & Casualty Insurance	$	(58.4)	$	(35.1)	$	(28.7)	$	(38.9)	$	(44.7)
Preferred Property & Casualty Insurance	(9.5)		(0.9)		(2.1)		(16.8)		(6.1)
Life & Health Insurance	13.2		23.0		14.0		20.2		11.6
Total Segment Net Operating Loss	(54.7)		(13.0)		(16.8)		(35.5)		(39.2)
Corporate and Other Net Operating Loss From:
Other	(10.5)		(11.4)		(12.3)		(1.7)		(12.4)
Corporate and Other Net Operating Loss	(10.5)		(11.4)		(12.3)		(1.7)		(12.4)
Adjusted Consolidated Net Operating Loss	(65.2)		(24.4)		(29.1)		(37.2)		(51.6)
Net Income (Loss) From:
Change in Fair Value of Equity and Convertible Securities	1.3		—		(8.8)		(32.0)		(22.3)
Net Realized Investment Gains (Losses)	5.1		3.1		(9.6)		8.7		1.2
Impairment Losses	1.7		(2.9)		(6.6)		(3.9)		(7.0)
Acquisition and Disposition Related Transaction, Integration, Restructuring and Other Costs	(23.0)		(29.1)		(20.7)		(7.8)		(3.7)
Loss from Early Extinguishment of Debt	—		—		—		—		(2.9)
Net Loss	$	(80.1)	$	(53.3)	$	(74.8)	$	(72.2)	$	(86.3)

12

Kemper Corporation

Catastrophe Frequency and Severity

(Dollars in Millions)

(Unaudited)

	Three Months Ended March 31, 2023
	Specialty Property & Casualty Insurance Segment			Preferred Property & Casualty Insurance Segment			Life & Health Insurance Segment			Consolidated
	Number of Events	Losses and LAE		Number of Events	Losses and LAE		Number of Events	Losses and LAE		Number of Events	Losses and LAE
Range of Losses and LAE Per Event1:
Below $5	20	$	8.3	24	$	17.0	12	$	0.6	24	$	25.9
$5 - $10	—	—		—	—		—	—		—	—
$10 - $15	—	—		—	—		—	—		—	—
$15 - $20	—	—		—	—		—	—		—	—
$20 - $25	—	—		—	—		—	—		—	—
Greater Than $25	—	—		—	—		—	—		—	—
Total	20	$	8.3	24	$	17.0	12	$	0.6	24	$	25.9
	Three Months Ended March 31, 2022
	Specialty Property & Casualty Insurance Segment			Preferred Property & Casualty Insurance Segment			Life & Health Insurance Segment			Consolidated
	Number of Events	Losses and LAE		Number of Events	Losses and LAE		Number of Events	Losses and LAE		Number of Events	Losses and LAE
Range of Losses and LAE Per Event1:
Below $5	11	$	2.1	11	$	11.4	10	$	0.4	11	$	13.9
$5 - $10	—	—		—	—		—	—		—	—
$10 - $15	—	—		—	—		—	—		—	—
$15 - $20	—	—		—	—		—	—		—	—
$20 - $25	—	—		—	—		—	—		—	—
Greater Than $25	—	—		—	—		—	—		—	—
Total	11	$	2.1	11	$	11.4	10	$	0.4	11	$	13.9
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 Ended
	Mar 31, 2023			Dec 31, 2022			Sep 30, 2022			Jun 30, 2022			Mar 31, 2022
Results of Operations
Net Premiums Written	$	1,022.1		$	922.3		$	968.5		$	1,019.9		$	1,023.7
Total Specialty P&C
Personal Automobile	787.9			830.4			858.8			905.8			901.7
Commercial Automobile	156.3			151.2			140.7			137.9			119.9
Earned Premium	$	944.2		$	981.6		$	999.5		$	1,043.7		$	1,021.6
Net Investment Income	38.5			37.9			33.9			34.0			34.9
Change in Value of Alternative Energy Partnership Investments	0.4			0.7			0.3			(2.5)			(8.4)
Other Income	0.9			1.0			2.3			1.0			1.7
Total Revenues	984.0			1,021.2			1,036.0			1,076.2			1,049.8
Incurred Losses and LAE related to:
Current Year:
Non-catastrophe Losses and LAE	825.4			859.3			868.0			930.2			911.7
Catastrophe Losses and LAE	8.4			(0.1)			14.8			6.2			2.1
Prior Years:
Non-catastrophe Losses and LAE	31.6			10.2			(6.6)			(14.4)			(3.8)
Catastrophe Losses and LAE	(0.5)			(0.1)			0.2			(0.2)			0.7
Total Incurred Losses and LAE	864.9			869.3			876.4			921.8			910.7
Insurance Expenses	193.8			198.4			198.8			205.4			199.3
Operating Loss	(74.7)			(46.5)			(39.2)			(51.0)			(60.2)
Income Tax Benefit	16.3			11.4			10.5			12.1			15.5
Segment Net Operating Loss	$	(58.4)		$	(35.1)		$	(28.7)		$	(38.9)		$	(44.7)
Ratios Based On Earned Premiums
Current Year Non-catastrophe Losses and LAE Ratio	87.5		%	87.6		%	86.9		%	89.1		%	89.2		%
Current Year Catastrophe Losses and LAE Ratio	0.9			—			1.5			0.6			0.2
Prior Years Non-catastrophe Losses and LAE Ratio	3.3			1.0			(0.7)			(1.4)			(0.4)
Prior Years Catastrophe Losses and LAE Ratio	(0.1)			—			—			—			0.1
Total Incurred Loss and LAE Ratio	91.6			88.6			87.7			88.3			89.1
Insurance Expense Ratio	20.5			20.2			19.9			19.7			19.5
Combined Ratio	112.1		%	108.8		%	107.6		%	108.0		%	108.6		%
Underlying Combined Ratio 1
Current Year Non-catastrophe Losses and LAE Ratio	87.5		%	87.6		%	86.9		%	89.1		%	89.2		%
Insurance Expense Ratio	20.5			20.2			19.9			19.7			19.5
Underlying Combined Ratio	108.0		%	107.8		%	106.8		%	108.8		%	108.7		%
Non-GAAP Measure Reconciliation
Combined Ratio as Reported	112.1		%	108.8		%	107.6		%	108.0		%	108.6		%
Less:
Current Year Catastrophe Losses and LAE Ratio	0.9			—			1.5			0.6			0.2
Prior Years Non-catastrophe Losses and LAE Ratio	3.3			1.0			(0.7)			(1.4)			(0.4)
Prior Years Catastrophe Losses and LAE Ratio	(0.1)			—			—			—			0.1
Underlying Combined Ratio	108.0		%	107.8		%	106.8		%	108.8		%	108.7		%
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)

	Mar 31, 2023		Dec 31, 2022		Sep 30, 2022		Jun 30, 2022		Mar 31, 2022
Insurance Reserves:
Non-Standard Automobile	$	1,805.6	$	1,875.8	$	1,857.0	$	1,915.2	$	1,952.3
Commercial Automobile	491.4		445.3		417.8		385.9		356.5
Insurance Reserves	$	2,297.0	$	2,321.1	$	2,274.8	$	2,301.1	$	2,308.8
Insurance Reserves:
Loss and Allocated LAE Reserves:
Case and Allocated LAE	$	1,094.8	$	1,099.9	$	1,110.7	$	1,151.0	$	1,166.0
Incurred but Not Reported	1,027.0		1,041.2		968.2		940.4		934.0
Total Loss Reserves	2,121.8		2,141.1		2,078.9		2,091.4		2,100.0
Unallocated LAE Reserves	175.2		180.0		195.9		209.7		208.8
Insurance Reserves	$	2,297.0	$	2,321.1	$	2,274.8	$	2,301.1	$	2,308.8

15

Kemper Corporation

Specialty Property & Casualty Insurance Segment

Personal Automobile Insurance - Results of Operations and Selected Financial Information

(Dollars in Millions)

(Unaudited)

	Three Months Ended
	Mar 31, 2023			Dec 31, 2022			Sep 30, 2022			Jun 30, 2022			Mar 31, 2022
Results of Operations
Net Premiums Written	$	842.4		$	762.8		$	805.2		$	852.3		$	884.8
Earned Premiums	$	787.9		$	830.4		$	858.8		$	905.8		$	901.7
Net Investment Income	29.9			29.7			26.5			26.6			27.2
Change in Value of Alternative Energy Partnership Investments	0.3			0.5			0.3			(1.8)			(6.0)
Other Income	0.9			1.0			2.3			1.0			1.7
Total Revenues	819.0			861.6			887.9			931.6			924.6
Incurred Losses and LAE related to:
Current Year:
Non-catastrophe Losses and LAE	697.6			739.8			757.8			828.6			827.7
Catastrophe Losses and LAE	7.7			(0.2)			13.1			5.8			2.0
Prior Years:
Non-catastrophe Losses and LAE	23.4			14.1			(6.7)			(16.5)			(9.0)
Catastrophe Losses and LAE	(0.5)			(0.1)			0.1			(0.2)			0.7
Total Incurred Losses and LAE	728.2			753.6			764.3			817.7			821.4
Insurance Expenses	162.0			172.2			172.9			179.7			177.3
Operating Loss	(71.2)			(64.2)			(49.3)			(65.8)			(74.1)
Income Benefit	15.5			14.7			12.3			14.9			17.7
Total Product Line Net Operating Loss	$	(55.7)		$	(49.5)		$	(37.0)		$	(50.9)		$	(56.4)
Ratios Based On Earned Premiums
Current Year Non-catastrophe Losses and LAE Ratio	88.5		%	89.1		%	88.3		%	91.5		%	91.8		%
Current Year Catastrophe Losses and LAE Ratio	1.0			—			1.5			0.6			0.2
Prior Years Non-catastrophe Losses and LAE Ratio	3.0			1.7			(0.8)			(1.8)			(1.0)
Prior Years Catastrophe Losses and LAE Ratio	(0.1)			—			—			—			0.1
Total Incurred Loss and LAE Ratio	92.4			90.8			89.0			90.3			91.1
Insurance Expense Ratio	20.6			20.7			20.1			19.8			19.7
Combined Ratio	113.0		%	111.5		%	109.1		%	110.1		%	110.8		%
Underlying Combined Ratio 1
Current Year Non-catastrophe Losses and LAE Ratio	88.5		%	89.1		%	88.3		%	91.5		%	91.8		%
Insurance Expense Ratio	20.6			20.7			20.1			19.8			19.7
Underlying Combined Ratio	109.1		%	109.8		%	108.4		%	111.3		%	111.5		%
Non-GAAP Measure Reconciliation
Combined Ratio	113.0		%	111.5		%	109.1		%	110.1		%	110.8		%
Less:
Current Year Catastrophe Losses and LAE Ratio	1.0			—			1.5			0.6			0.2
Prior Years Non-catastrophe Losses and LAE Ratio	3.0			1.7			(0.8)			(1.8)			(1.0)
Prior Years Catastrophe Losses and LAE Ratio	(0.1)			—			—			—			0.1
Underlying Combined Ratio	109.1		%	109.8		%	108.4		%	111.3		%	111.5		%
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.

16

Kemper Corporation

Specialty Property & Casualty Insurance Segment

Commercial Automobile Insurance - Results of Operations and Selected Financial Information

(Dollars in Millions)

(Unaudited)

	Three Months Ended
	Mar 31, 2023			Dec 31, 2022			Sep 30, 2022			Jun 30, 2022			Mar 31, 2022
Results of Operations
Net Premiums Written	$	179.7		$	159.5		$	163.3		$	167.6		$	138.9
Earned Premiums	$	156.3		$	151.2		$	140.7		$	137.9		$	119.9
Net Investment Income	8.6			8.2			7.4			7.4			7.7
Change in Value of Alternative Energy Partnership Investments	0.1			0.2			—			(0.7)			(2.4)
Total Revenues	165.0			159.6			148.1			144.6			125.2
Incurred Losses and LAE related to:
Current Year:
Non-catastrophe Losses and LAE	127.8			119.5			110.2			101.6			84.0
Catastrophe Losses and LAE	0.7			0.1			1.7			0.4			0.1
Prior Years:
Non-catastrophe Losses and LAE	8.2			(3.9)			0.1			2.1			5.2
Catastrophe Losses and LAE	—			—			0.1			—			—
Total Incurred Losses and LAE	136.7			115.7			112.1			104.1			89.3
Insurance Expenses	31.8			26.2			25.9			25.7			22.0
Operating (Loss) Income	(3.5)			17.7			10.1			14.8			13.9
Income Tax Benefit (Expense)	0.8			(3.3)			(1.8)			(2.8)			(2.2)
Total Product Line Net Operating (Loss) Income	$	(2.7)		$	14.4		$	8.3		$	12.0		$	11.7
Ratios Based On Earned Premiums
Current Year Non-catastrophe Losses and LAE Ratio	81.9		%	79.0		%	78.3		%	73.7		%	70.1		%
Current Year Catastrophe Losses and LAE Ratio	0.4			0.1			1.2			0.3			0.1
Prior Years Non-catastrophe Losses and LAE Ratio	5.2			(2.6)			0.1			1.5			4.3
Prior Years Catastrophe Losses and LAE Ratio	—			—			0.1			—			—
Total Incurred Loss and LAE Ratio	87.5			76.5			79.7			75.5			74.5
Insurance Expense Ratio	20.3			17.3			18.4			18.6			18.3
Combined Ratio	107.8		%	93.8		%	98.1		%	94.1		%	92.8		%
Underlying Combined Ratio 1
Current Year Non-catastrophe Losses and LAE Ratio	81.9		%	79.0		%	78.3		%	73.7		%	70.1		%
Insurance Expense Ratio	20.3			17.3			18.4			18.6			18.3
Underlying Combined Ratio	102.2		%	96.3		%	96.7		%	92.3		%	88.4		%
Non-GAAP Measure Reconciliation
Combined Ratio	107.8		%	93.8		%	98.1		%	94.1		%	92.8		%
Less:
Current Year Catastrophe Losses and LAE Ratio	0.4			0.1			1.2			0.3			0.1
Prior Years Non-catastrophe Losses and LAE Ratio	5.2			(2.6)			0.1			1.5			4.3
Prior Years Catastrophe Losses and LAE Ratio	—			—			0.1			—			—
Underlying Combined Ratio	102.2		%	96.3		%	96.7		%	92.3		%	88.4		%
1 Underlying Combined Ratio is a non-GAAP measure, which is computed as the difference between three operating ratios: the combined ratio, the effect of catastrophes (excluding development of prior-year catastrophes) on the combined ratio and the effect of prior-year reserve development at the reporting date (including development on prior-year catastrophes) on the combined ratio.

17

Kemper Corporation

Preferred Property & Casualty Insurance Segment

Results of Operations and Selected Financial Information

(Dollars in Millions)

(Unaudited)

	Three Months Ended
	Mar 31, 2023			Dec 31, 2022			Sep 30, 2022			Jun 30, 2022			Mar 31, 2022
Results of Operations
Net Premiums Written	$	124.0		$	115.1		$	133.3		$	141.3		$	137.4
Earned Premiums	$	137.4		$	140.7		$	149.3		$	149.9		$	155.6
Net Investment Income	10.5			13.5			11.8			11.9			12.5
Change in Value of Alternative Energy Partnership Investments	0.1			0.3			—			(1.1)			(3.9)
Total Revenues	148.0			154.5			161.1			160.7			164.2
Incurred Losses and LAE related to:
Current Year:
Non-catastrophe Losses and LAE	90.4			108.9			110.7			110.5			112.2
Catastrophe Losses and LAE	17.0			8.8			10.8			23.5			11.4
Prior Years:
Non-catastrophe Losses and LAE	6.9			(0.8)			(0.3)			1.8			2.1
Catastrophe Losses and LAE	2.9			(1.5)			(0.7)			(0.8)			(3.2)
Total Incurred Losses and LAE	117.2			115.4			120.5			135.0			122.5
Insurance Expenses	43.0			41.1			43.9			47.3			51.2
Operating Loss	(12.2)			(2.0)			(3.3)			(21.6)			(9.5)
Income Tax Benefit	2.7			1.1			1.2			4.8			3.4
Segment Net Operating Loss	$	(9.5)		$	(0.9)		$	(2.1)		$	(16.8)		$	(6.1)
Ratios Based On Earned Premiums
Current Year Non-catastrophe Losses and LAE Ratio	65.8		%	77.4		%	74.2		%	73.7		%	72.2		%
Current Year Catastrophe Losses and LAE Ratio	12.4			6.3			7.2			15.7			7.3
Prior Years Non-catastrophe Losses and LAE Ratio	5.0			(0.6)			(0.2)			1.2			1.3
Prior Years Catastrophe Losses and LAE Ratio	2.1			(1.1)			(0.5)			(0.5)			(2.1)
Total Incurred Loss and LAE Ratio	85.3			82.0			80.7			90.1			78.7
Insurance Expense Ratio	31.3			29.2			29.4			31.6			32.9
Combined Ratio	116.6		%	111.2		%	110.1		%	121.7		%	111.6		%
Underlying Combined Ratio 1
Current Year Non-catastrophe Losses and LAE Ratio	65.8		%	77.4		%	74.2		%	73.7		%	72.2		%
Insurance Expense Ratio	31.3			29.2			29.4			31.6			32.9
Underlying Combined Ratio	97.1		%	106.6		%	103.6		%	105.3		%	105.1		%
Non-GAAP Measure Reconciliation
Combined Ratio as Reported	116.6		%	111.2		%	110.1		%	121.7		%	111.6		%
Less:
Current Year Catastrophe Losses and LAE Ratio	12.4			6.3			7.2			15.7			7.3
Prior Years Non-catastrophe Losses and LAE Ratio	5.0			(0.6)			(0.2)			1.2			1.3
Prior Years Catastrophe Losses and LAE Ratio	2.1			(1.1)			(0.5)			(0.5)			(2.1)
Underlying Combined Ratio	97.1		%	106.6		%	103.6		%	105.3		%	105.1		%
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.

18

Kemper Corporation

Preferred Property & Casualty Insurance Segment

Results of Operations and Selected Financial Information (continued)

(Dollars in Millions)

(Unaudited)

	Mar 31, 2023		Dec 31, 2022		Sep 30, 2022		Jun 30, 2022		Mar 31, 2022
Insurance Reserves:
Personal Automobile	$	284.1	$	298.4	$	303.6	$	306.8	$	307.9
Homeowners	94.7		91.8		93.7		100.6		93.1
Other Personal	29.1		28.9		29.7		31.6		30.6
Insurance Reserves	$	407.9	$	419.1	$	427.0	$	439.0	$	431.6
Insurance Reserves:
Loss and Allocated LAE Reserves:
Case and Allocated LAE	$	250.3	$	251.6	$	259.6	$	270.0	$	271.1
Incurred but Not Reported	129.0		139.0		138.1		139.9		131.8
Total Loss Reserves	379.3		390.6		397.7		409.9		402.9
Unallocated LAE Reserves	28.6		28.5		29.3		29.1		28.7
Insurance Reserves	$	407.9	$	419.1	$	427.0	$	439.0	$	431.6

19

Kemper Corporation

Preferred Property & Casualty Insurance Segment

Personal Automobile Insurance - Results of Operations and Selected Financial Information

(Dollars in Millions)

(Unaudited)

	Three Months Ended
	Mar 31, 2023			Dec 31, 2022			Sep 30, 2022			Jun 30, 2022			Mar 31, 2022
Results of Operations
Net Premiums Written	$	71.8		$	66.1		$	73.3		$	84.6		$	84.2
Earned Premiums	$	78.2		$	84.2		$	89.5		$	94.0		$	96.0
Net Investment Income	5.4			6.5			5.7			5.8			6.0
Change in Value of Alternative Energy Partnership Investments	0.1			0.1			—			(0.5)			(1.9)
Total Revenues	83.7			90.8			95.2			99.3			100.1
Incurred Losses and LAE related to:
Current Year:
Non-catastrophe Losses and LAE	62.7			75.7			76.7			77.8			80.5
Catastrophe Losses and LAE	1.2			0.6			1.1			1.6			0.5
Prior Years:
Non-catastrophe Losses and LAE	2.9			0.1			0.2			—			1.5
Catastrophe Losses and LAE	0.5			(0.2)			0.1			—			0.1
Total Incurred Losses and LAE	67.3			76.2			78.1			79.4			82.6
Insurance Expenses	24.6			23.9			26.5			28.4			31.2
Operating Loss	(8.2)			(9.3)			(9.4)			(8.5)			(13.7)
Income Tax Benefit	1.8			2.3			2.2			1.9			3.6
Total Product Line Net Operating Loss	$	(6.4)		$	(7.0)		$	(7.2)		$	(6.6)		$	(10.1)
Ratios Based On Earned Premiums
Current Year Non-catastrophe Losses and LAE Ratio	80.3		%	89.9		%	85.8		%	82.8		%	83.8		%
Current Year Catastrophe Losses and LAE Ratio	1.5			0.7			1.2			1.7			0.5
Prior Years Non-catastrophe Losses and LAE Ratio	3.7			0.1			0.2			—			1.6
Prior Years Catastrophe Losses and LAE Ratio	0.6			(0.2)			0.1			—			0.1
Total Incurred Loss and LAE Ratio	86.1			90.5			87.3			84.5			86.0
Insurance Expense Ratio	31.5			28.4			29.6			30.2			32.5
Combined Ratio	117.6		%	118.9		%	116.9		%	114.7		%	118.5		%
Underlying Combined Ratio 1
Current Year Non-catastrophe Losses and LAE Ratio	80.3		%	89.9		%	85.8		%	82.8		%	83.8		%
Insurance Expense Ratio	31.5			28.4			29.6			30.2			32.5
Underlying Combined Ratio	111.8		%	118.3		%	115.4		%	113.0		%	116.3		%
Non-GAAP Measure Reconciliation
Combined Ratio	117.6		%	118.9		%	116.9		%	114.7		%	118.5		%
Less:
Current Year Catastrophe Losses and LAE Ratio	1.5			0.7			1.2			1.7			0.5
Prior Years Non-catastrophe Losses and LAE Ratio	3.7			0.1			0.2			—			1.6
Prior Years Catastrophe Losses and LAE Ratio	0.6			(0.2)			0.1			—			0.1
Underlying Combined Ratio	111.8		%	118.3		%	115.4		%	113.0		%	116.3		%
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.

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 Ended
	Mar 31, 2023			Dec 31, 2022			Sep 30, 2022			Jun 30, 2022			Mar 31, 2022
Results of Operations
Net Premiums Written	$	52.2		$	49.0		$	60.0		$	56.7		$	53.2
Earned Premiums	$	59.2		$	56.5		$	59.8		$	55.9		$	59.6
Net Investment Income	5.1			7.0			6.1			6.1			6.5
Change in Value of Alternative Energy Partnership Investments	—			0.2			—			(0.6)			(2.0)
Total Revenues	64.3			63.7			65.9			61.4			64.1
Incurred Losses and LAE related to:
Current Year:
Non-catastrophe Losses and LAE	27.7			33.2			34.0			32.7			31.7
Catastrophe Losses and LAE	15.8			8.2			9.7			21.9			10.9
Prior Years:
Non-catastrophe Losses and LAE	4.0			(0.9)			(0.5)			1.8			0.6
Catastrophe Losses and LAE	2.4			(1.3)			(0.8)			(0.8)			(3.3)
Total Incurred Losses and LAE	49.9			39.2			42.4			55.6			39.9
Insurance Expenses	18.4			17.2			17.4			18.9			20.0
Operating (Loss) Income	(4.0)			7.3			6.1			(13.1)			4.2
Income Tax Benefit (Expense)	0.9			(1.2)			(1.0)			2.9			(0.2)
Total Product Line Net Operating (Loss) Income	$	(3.1)		$	6.1		$	5.1		$	(10.2)		$	4.0
Ratios Based On Earned Premiums
Current Year Non-catastrophe Losses and LAE Ratio	46.7		%	58.8		%	56.8		%	58.5		%	53.1		%
Current Year Catastrophe Losses and LAE Ratio	26.7			14.5			16.2			39.2			18.3
Prior Years Non-catastrophe Losses and LAE Ratio	6.8			(1.6)			(0.8)			3.2			1.0
Prior Years Catastrophe Losses and LAE Ratio	4.1			(2.3)			(1.3)			(1.4)			(5.5)
Total Incurred Loss and LAE Ratio	84.3			69.4			70.9			99.5			66.9
Insurance Expense Ratio	31.1			30.4			29.1			33.8			33.6
Combined Ratio	115.4		%	99.8		%	100.0		%	133.3		%	100.5		%
Underlying Combined Ratio 1
Current Year Non-catastrophe Losses and LAE Ratio	46.7		%	58.8		%	56.8		%	58.5		%	53.1		%
Insurance Expense Ratio	31.1			30.4			29.1			33.8			33.6
Underlying Combined Ratio	77.8		%	89.2		%	85.9		%	92.3		%	86.7		%
Non-GAAP Measure Reconciliation
Combined Ratio	115.4		%	99.8		%	100.0		%	133.3		%	100.5		%
Less:
Current Year Catastrophe Losses and LAE Ratio	26.7			14.5			16.2			39.2			18.3
Prior Years Non-catastrophe Losses and LAE Ratio	6.8			(1.6)			(0.8)			3.2			1.0
Prior Years Catastrophe Losses and LAE Ratio	4.1			(2.3)			(1.3)			(1.4)			(5.5)
Underlying Combined Ratio	77.8		%	89.2		%	85.9		%	92.3		%	86.7		%
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 Ended
	Mar 31, 2023			Dec 31, 2022			Sep 30, 2022			Jun 30, 2022			Mar 31, 2022
Results of Operations
Net Premiums Written	$	46.2		$	42.4		$	52.8		$	49.2		$	45.5
Earned Premiums	$	52.2		$	49.1		$	51.9		$	47.7		$	51.3
Net Investment Income	4.2			5.8			5.1			5.1			5.4
Change in Value of Alternative Energy Partnership Investments	—			0.1			0.1			(0.5)			(1.7)
Total Revenues	56.4			55.0			57.1			52.3			55.0
Incurred Losses and LAE related to:
Current Year:
Non-catastrophe Losses and LAE	23.9			30.1			28.8			28.6			27.5
Catastrophe Losses and LAE	14.9			8.3			9.4			21.3			10.8
Prior Years:
Non-catastrophe Losses and LAE	3.1			(0.3)			—			(0.1)			(1.6)
Catastrophe Losses and LAE	2.4			(1.2)			(0.8)			(0.8)			(2.8)
Total Incurred Losses and LAE	44.3			36.9			37.4			49.0			33.9
Insurance Expenses	16.6			14.9			15.2			16.3			17.5
Operating (Loss) Income	(4.5)			3.2			4.5			(13.0)			3.6
Income Tax Benefit (Expense)	1.0			(0.4)			(0.7)			2.9			(0.2)
Total Product Line Net Operating (Loss) Income	$	(3.5)		$	2.8		$	3.8		$	(10.1)		$	3.4
Ratios Based On Earned Premiums
Current Year Non-catastrophe Losses and LAE Ratio	45.9		%	61.3		%	55.5		%	59.9		%	53.6		%
Current Year Catastrophe Losses and LAE Ratio	28.5			16.9			18.1			44.7			21.1
Prior Years Non-catastrophe Losses and LAE Ratio	5.9			(0.6)			—			(0.2)			(3.1)
Prior Years Catastrophe Losses and LAE Ratio	4.6			(2.4)			(1.5)			(1.7)			(5.5)
Total Incurred Loss and LAE Ratio	84.9			75.2			72.1			102.7			66.1
Insurance Expense Ratio	31.8			30.3			29.3			34.2			34.1
Combined Ratio	116.7		%	105.5		%	101.4		%	136.9		%	100.2		%
Underlying Combined Ratio 1
Current Year Non-catastrophe Losses and LAE Ratio	45.9		%	61.3		%	55.5		%	59.9		%	53.6		%
Insurance Expense Ratio	31.8			30.3			29.3			34.2			34.1
Underlying Combined Ratio	77.7		%	91.6		%	84.8		%	94.1		%	87.7		%
Non-GAAP Measure Reconciliation
Combined Ratio	116.7		%	105.5		%	101.4		%	136.9		%	100.2		%
Less:
Current Year Catastrophe Losses and LAE Ratio	28.5			16.9			18.1			44.7			21.1
Prior Years Non-catastrophe Losses and LAE Ratio	5.9			(0.6)			—			(0.2)			(3.1)
Prior Years Catastrophe Losses and LAE Ratio	4.6			(2.4)			(1.5)			(1.7)			(5.5)
Underlying Combined Ratio	77.7		%	91.6		%	84.8		%	94.1		%	87.7		%
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.

22

Kemper Corporation

Preferred Property & Casualty Insurance Segment

Other Personal Insurance - Results of Operations and Selected Financial Information

(Dollars in Millions)

(Unaudited)

	Three Months Ended
	Mar 31, 2023			Dec 31, 2022			Sep 30, 2022			Jun 30, 2022			Mar 31, 2022
Results of Operations
Net Premiums Written	$	6.0		$	6.6		$	7.2		$	7.5		$	7.7
Earned Premiums	$	7.0		$	7.4		$	7.9		$	8.2		$	8.3
Net Investment Income	0.9			1.2			1.0			1.0			1.1
Change in Value of Alternative Energy Partnership Investments	—			0.1			(0.1)			(0.1)			(0.3)
Total Revenues	7.9			8.7			8.8			9.1			9.1
Incurred Losses and LAE related to:
Current Year:
Non-catastrophe Losses and LAE	3.8			3.1			5.2			4.1			4.2
Catastrophe Losses and LAE	0.9			(0.1)			0.3			0.6			0.1
Prior Years:
Non-catastrophe Losses and LAE	0.9			(0.6)			(0.5)			1.9			2.2
Catastrophe Losses and LAE	—			(0.1)			—			—			(0.5)
Total Incurred Losses and LAE	5.6			2.3			5.0			6.6			6.0
Insurance Expenses	1.8			2.3			2.2			2.6			2.5
Operating Income (Loss)	0.5			4.1			1.6			(0.1)			0.6
Income Tax Expense	(0.1)			(0.8)			(0.3)			—			—
Total Product Line Net Operating Income (Loss)	$	0.4		$	3.3		$	1.3		$	(0.1)		$	0.6
Ratios Based On Earned Premiums
Current Year Non-catastrophe Losses and LAE Ratio	54.2		%	42.0		%	65.8		%	50.0		%	50.6		%
Current Year Catastrophe Losses and LAE Ratio	12.9			(1.4)			3.8			7.3			1.2
Prior Years Non-catastrophe Losses and LAE Ratio	12.9			(8.1)			(6.3)			23.2			26.5
Prior Years Catastrophe Losses and LAE Ratio	—			(1.4)			—			—			(6.0)
Total Incurred Loss and LAE Ratio	80.0			31.1			63.3			80.5			72.3
Insurance Expense Ratio	25.7			31.1			27.8			31.7			30.1
Combined Ratio	105.7		%	62.2		%	91.1		%	112.2		%	102.4		%
Underlying Combined Ratio 1
Current Year Non-catastrophe Losses and LAE Ratio	54.2		%	42.0		%	65.8		%	50.0		%	50.6		%
Insurance Expense Ratio	25.7			31.1			27.8			31.7			30.1
Underlying Combined Ratio	79.9		%	73.1		%	93.6		%	81.7		%	80.7		%
Non-GAAP Measure Reconciliation
Combined Ratio	105.7		%	62.2		%	91.1		%	112.2		%	102.4		%
Less:
Current Year Catastrophe Losses and LAE Ratio	12.9			(1.4)			3.8			7.3			1.2
Prior Years Non-catastrophe Losses and LAE Ratio	12.9			(8.1)			(6.3)			23.2			26.5
Prior Years Catastrophe Losses and LAE Ratio	—			(1.4)			—			—			(6.0)
Underlying Combined Ratio	79.9		%	73.1		%	93.6		%	81.7		%	80.7		%
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.

23

Kemper Corporation

Life & Health Insurance Segment

Results of Operations and Selected Financial Information

(Dollars in Millions)

(Unaudited)

	Three Months Ended
	Mar 31, 2023		Dec 31, 2022		Sep 30, 2022		Jun 30, 2022		Mar 31, 2022
Results of Operations
Earned Premiums	$	99.3	$	142.6	$	142.1	$	144.0	$	142.8
Net Investment Income	49.8		52.6		52.6		61.9		49.4
Change in Value of Alternative Energy Partnership Investments	0.2		0.3		0.1		(1.3)		(4.4)
Other Income	(0.4)		0.2		—		(0.8)		—
Total Revenues	148.9		195.7		194.8		203.8		187.8
Policyholders’ Benefits and Incurred Losses and LAE	69.9		88.1		88.5		94.3		89.9
Insurance Expenses	64.2		81.1		90.7		85.6		85.9
Operating Income	14.8		26.5		15.6		23.9		12.0
Income Tax Expense	(1.6)		(3.5)		(1.6)		(3.7)		(0.4)
Segment Net Operating Income	$	13.2	$	23.0	$	14.0	$	20.2	$	11.6

	Mar 31, 2023		Dec 31, 2022		Sep 30, 2022 1		Jun 30, 2022		Mar 31, 2022
Insurance Reserves:
Future Policyholder Benefits	$	3,346.9	$	3,218.5	$	3,190.2	$	3,503.4	$	4,015.4
Incurred Losses and LAE Reserves:
Life	48.3		53.3		55.7		56.7		63.6
Accident and Health	4.4		4.3		23.4		25.0		25.2
Property	2.7		2.3		3.6		3.1		3.1
Total Incurred Losses and LAE Reserves	55.4		59.9		82.7		84.8		91.9
Insurance Reserves	$	3,402.3	$	3,278.4	$	3,272.9	$	3,588.2	$	4,107.3
1 Includes reserves classified as Held-for-Sale Liabilities on the Condensed Consolidated Balance Sheets. See Note 3, “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 Ended
	Mar 31, 2023		Dec 31, 2022		Sep 30, 2022		Jun 30, 2022		Mar 31, 2022
Results of Operations
Earned Premiums	$	82.2	$	99.0	$	84.3	$	86.8	$	82.7
Net Investment Income	49.5		51.0		51.0		60.1		47.9
Change in Value of Alternative Energy Partnership Investments	0.2		0.3		0.1		(1.3)		(4.0)
Other (Loss) Income	(0.5)		0.1		(0.1)		(1.1)		—
Total Revenues	131.4		150.4		135.3		144.5		126.6
Policyholders’ Benefits and Incurred Losses and LAE	64.1		70.4		61.5		64.9		60.4
Insurance Expenses	56.1		58.9		61.7		58.9		58.2
Operating Income	11.2		21.1		12.1		20.7		8.0
Income Tax (Expense) Benefit	(0.9)		(2.6)		(0.9)		(3.0)		0.3
Total Product Line Net Operating Income	$	10.3	$	18.5	$	11.2	$	17.7	$	8.3

Kemper Corporation

Life & Health Insurance Segment

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

(Dollars in Millions)

(Unaudited)

	Three Months Ended
	Mar 31, 2023		Dec 31, 2022		Sep 30, 2022		Jun 30, 2022		Mar 31, 2022
Results of Operations
Earned Premiums	$	5.9	$	31.4	$	45.9	$	45.1	$	45.8
Net Investment Income	—		0.8		0.8		1.0		0.7
Change in Value of Alternative Energy Partnership Investments	—		—		—		—		(0.1)
Other Income	0.1		0.1		0.1		0.3		—
Total Revenues	6.0		32.3		46.8		46.4		46.4
Policyholders’ Benefits and Incurred Losses and LAE	2.0		16.2		22.3		24.5		23.5
Insurance Expenses	2.0		15.8		22.4		20.1		20.8
Operating Income	2.0		0.3		2.1		1.8		2.1
Income Tax (Expense) Benefit	(0.4)		0.1		(0.4)		(0.4)		(0.4)
Total Product Line Net Operating Income	$	1.6	$	0.4	$	1.7	$	1.4	$	1.7

25

Kemper Corporation

Life & Health Insurance Segment

Property Insurance - Results of Operations and Selected Financial Information

(Dollars in Millions)

(Unaudited)

	Three Months Ended
	Mar 31, 2023			Dec 31, 2022			Sep 30, 2022			Jun 30, 2022			Mar 31, 2022
Results of Operations
Earned Premiums	$	11.2		$	12.2		$	11.9		$	12.1		$	14.3
Net Investment Income	0.3			0.8			0.8			0.8			0.8
Change in Value of Alternative Energy Partnership Investments	—			—			—			—			(0.3)
Total Revenues	11.5			13.0			12.7			12.9			14.8
Incurred Losses and LAE related to:
Current Year:
Non-catastrophe Losses and LAE	2.2			2.0			2.8			3.6			4.1
Catastrophe Losses and LAE	0.6			(0.6)			1.4			0.6			0.4
Prior Years:
Non-catastrophe Losses and LAE	0.8			0.1			0.1			0.5			0.6
Catastrophe Losses and LAE	0.2			—			0.4			0.2			0.9
Total Incurred Losses and LAE	3.8			1.5			4.7			4.9			6.0
Insurance Expenses	6.1			6.4			6.6			6.6			6.9
Operating Income	1.6			5.1			1.4			1.4			1.9
Income Tax Expense	(0.3)			(1.0)			(0.3)			(0.3)			(0.3)
Total Product Line Net Operating Income	$	1.3		$	4.1		$	1.1		$	1.1		$	1.6
Ratios Based On Earned Premiums
Current Year Non-catastrophe Losses and LAE Ratio	19.6		%	16.4		%	23.5		%	29.7		%	28.7		%
Current Year Catastrophe Losses and LAE Ratio	5.4			(4.9)			11.8			5.0			2.8
Prior Years Non-catastrophe Losses and LAE Ratio	7.1			0.8			0.8			4.1			4.2
Prior Years Catastrophe Losses and LAE Ratio	1.8			—			3.4			1.7			6.3
Total Incurred Loss and LAE Ratio	33.9			12.3			39.5			40.5			42.0
Insurance Expense Ratio	54.5			52.5			55.5			54.5			48.3
Combined Ratio	88.4		%	64.8		%	95.0		%	95.0		%	90.3		%
Underlying Combined Ratio 1
Current Year Non-catastrophe Losses and LAE Ratio	19.6		%	16.4		%	23.5		%	29.7		%	28.7		%
Insurance Expense Ratio	54.5			52.5			55.5			54.5			48.3
Underlying Combined Ratio	74.1		%	68.9		%	79.0		%	84.2		%	77.0		%
Non-GAAP Measure Reconciliation
Combined Ratio	88.4		%	64.8		%	95.0		%	95.0		%	90.3		%
Less:
Current Year Catastrophe Losses and LAE Ratio	5.4			(4.9)			11.8			5.0			2.8
Prior Years Non-catastrophe Losses and LAE Ratio	7.1			0.8			0.8			4.1			4.2
Prior Years Catastrophe Losses and LAE Ratio	1.8			—			3.4			1.7			6.3
Underlying Combined Ratio	74.1		%	68.9		%	79.0		%	84.2		%	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.

26

Kemper Corporation

Expenses

(Dollars in Millions)

(Unaudited)

	Three Months Ended
	Mar 31, 2023		Dec 31, 2022		Sep 30, 2022		Jun 30, 2022		Mar 31, 2022
Insurance Expenses:
Commissions	$	166.9	$	165.7	$	176.3	$	190.9	$	191.9
General Expenses	94.2		86.4		93.5		91.4		87.1
Premium Taxes	23.6		25.3		23.6		25.2		25.4
Total Costs Incurred	284.7		277.4		293.4		307.5		304.4
Net Policy Acquisition Costs (Deferred) Amortized	(15.9)		9.9		6.5		(0.5)		(1.7)
Amortization of Valuation of Business Acquired ("VOBA")	0.5		0.7		0.6		0.7		2.1
Insurance Expenses	269.3		288.0		300.5		307.7		304.8
Loss from Early Extinguishment of Debt	—		—		—		—		3.7
Interest and Other Expenses:
Interest Expense	14.1		13.7		14.3		14.0		12.7
Other Expenses:
Acquisition and Disposition Related Transaction, Integration, Restructuring and Other Costs	29.1		35.6		12.7		9.9		4.7
Other	34.2		37.2		36.5		29.6		36.7
Other Expenses	63.3		72.8		49.2		39.5		41.4
Interest and Other Expenses	77.4		86.5		63.5		53.5		54.1
Total Expenses	$	346.7	$	374.5	$	364.0	$	361.2	$	362.6

27

Kemper Corporation

Details of Investment Performance

(Dollars in Millions)

(Unaudited)

	Three Months Ended
	Mar 31, 2023		Dec 31, 2022		Sep 30, 2022		Jun 30, 2022		Mar 31, 2022
Net Investment Income
Interest on Fixed Income Securities	$	86.2	$	81.7	$	76.9	$	72.8	$	68.7
Dividends on Equity Securities Excluding Alternative Investments	1.0		2.0		1.1		1.7		1.5
Alternative Investments:
Equity Method Limited Liability Investments	1.1		3.3		(0.6)		15.3		13.3
Limited Liability Investments Included in Equity Securities	2.6		7.2		8.8		18.5		7.6
Total Alternative Investments	3.7		10.5		8.2		33.8		20.9
Short-term Investments	2.3		2.3		1.1		0.2		0.1
Loans to Policyholders	5.4		5.2		5.5		5.3		5.5
Real Estate	2.4		2.5		3.1		2.3		2.2
Company-Owned Life Insurance	8.8		9.9		9.9		9.8		8.3
Other	3.0		2.6		1.7		1.7		1.7
Total Investment Income	112.8		116.7		107.5		127.6		108.9
Investment Expenses:
Real Estate	2.1		2.1		2.3		1.0		2.5
Other Investment Expenses	8.9		8.3		7.4		8.1		6.4
Total Investment Expenses	11.0		10.4		9.7		9.1		8.9
Net Investment Income	$	101.8	$	106.3	$	97.8	$	118.5	$	100.0
Net Realized Investment Gains (Losses)
Fixed Maturities:
Gains on Sales	1.1		$	3.6	$	14.2	$	13.4	0.4
Losses on Sales	(3.3)		(4.4)		(23.9)		(2.8)		(0.8)
Gains (Losses) on Hedging Activity	—		1.7		(0.3)		0.3		—
Equity Securities:
Gains on Sales	—		3.1		4.5		0.1		2.0
Losses on Sales	—		(0.1)		(6.6)		—		(0.1)
Other Investments:
Gains on Sales	8.6		—		—		—		—
Net Realized Investment Gains (Losses)	$	6.4	$	3.9	$	(12.1)	$	11.0	$	1.5
Net Impairment Losses Recognized in Earnings
Fixed Maturities	$	2.1	$	(3.7)	$	(8.3)	$	(4.9)	$	(8.9)
Net Impairment Gains (Losses) Recognized in Earnings	$	2.1	$	(3.7)	$	(8.3)	$	(4.9)	$	(8.9)

28

Kemper Corporation

Details of Invested Assets

(Dollars in Millions)

(Unaudited)

	Mar 31, 2023				Dec 31, 2022				Dec 31, 2021
	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	$	564.0	6.2	%	$	528.0	6.0	%	$	585.3	5.8	%
States and Political Subdivisions	1,622.9		17.8		1,568.9		17.8		1,589.5		15.9
Foreign Governments	4.0		—		4.1		—		5.2		0.1
Corporate Securities:
Bonds and Notes	3,703.3		40.8		3,539.4		40.4		4,425.4		44.1
Redeemable Preferred Stocks	8.0		0.1		8.0		0.1		7.5		0.1
Collateralized Loan Obligations	981.9		10.8		953.9		10.9		767.7		7.7
Other Mortgage- and Asset-backed	305.3		3.4		292.5		3.3		225.3		2.3
Total Fixed Maturities Reported at Fair Value	7,189.4		79.1		6,894.8		78.5		7,605.9		75.9
Equity Securities Reported at Fair Value:
Preferred Stocks	40.0		0.4		39.8		0.5		51.8		0.5
Common Stocks	1.2		—		2.1		—		21.8		0.2
Other Equity Interests:
Exchange Traded Funds	6.8		0.1		12.2		0.1		432.0		4.3
Limited Liability Companies and Limited Partnerships	195.6		2.2		189.1		2.2		325.0		3.2
Total Equity Securities Reported at Fair Value	243.6		2.7		243.2		2.8		830.6		8.3
Equity Method Limited Liability Investments	218.7		2.4		217.0		2.5		241.9		2.4
Alternative Energy Partnership Investments	17.0		0.2		16.3		0.2		39.6		0.4
Short-term Investments at Cost which Approximates Fair Value	278.4		3.1		278.4		3.2		284.1		2.8
Company Owned Life Insurance	595.3		6.5		586.5		6.7		448.1		4.5
Loans to Policyholders	283.1		3.1		283.4		3.2		286.2		2.9
Other Investments:
Equity Securities Reported at Modified Cost	37.1		0.4		38.4		0.4		32.3		0.3
Convertible Securities at Fair Value	45.3		0.5		43.3		0.5		46.4		0.6
Real Estate at Depreciated Cost	93.0		1.0		93.6		1.1		94.0		0.9
Mortgage Loans	85.7		0.9		91.1		1.0		96.8		1.0
Other	10.7		0.1		3.5		—		0.5		—
Total Other Investments	271.8		2.9		269.9		3.0		270.0		2.8
Total Investments	$	9,097.3	100.0	%	$	8,789.5	100.0	%	$	10,006.4	100.0	%
1 Sum of percentages for individual lines may not equal subtotals and grand total due to rounding.

29

Kemper Corporation

Details of Invested Assets (continued)

(Dollars in Millions)

(Unaudited)

	Mar 31, 2023				Dec 31, 2022				Dec 31, 2021
	Carrying Value		Percent of Total1		Carrying Value		Percent of Total1		Carrying Value		Percent of Total1
S&P Equivalent Rating for Fixed Maturities
AAA, AA, A	$	5,179.6	72.0	%	$	4,896.4	71.0	%	$	5,351.6	67.0	%
BBB	1,718.7		23.9		1,687.4		24.5		2,215.1		27.7
BB, B	225.2		3.2		239.7		3.5		331.0		4.2
CCC or Lower	65.9		0.9		71.3		1.0		89.2		1.1
Total Investments in Fixed Maturities	$	7,189.4	100.0	%	$	6,894.8	100.0	%	$	7,986.9	100.0	%
Duration (in Years)
Total Investments in Fixed Maturities	8.7				8.2				8.5

30

Kemper Corporation

Investment Concentration

(Dollars in Millions)

(Unaudited)

	Mar 31, 2023				Dec 31, 2022				Dec 31, 2021
Fair Value of Non-governmental Fixed Maturities by Industry	Amount		Percent of Total Investments		Amount		Percent of Total Investments		Amount		Percent of Total Investments
Finance, Insurance and Real Estate	$	2,086.3	22.9	%	$	2,007.5	22.8	%	$	1,996.7	19.2	%
Manufacturing	1,100.1		12.1		1,085.9		12.4		1,571.0		15.1
Transportation, Communication and Utilities	804.7		8.8		733.7		8.3		815.8		7.9
Services	640.7		7.0		602.4		6.9		617.5		5.9
Mining	182.2		2.0		173.3		2.0		254.3		2.4
Retail Trade	158.8		1.7		165.1		1.9		171.4		1.7
Construction	8.8		0.1		11.7		0.1		13.1		0.1
Other	16.9		0.2		14.2		0.2		14.1		0.1
Total Fair Value of Non-governmental Fixed Maturities	$	4,998.5	54.8	%	$	4,793.8	54.6	%	$	5,453.9	52.4	%

	Mar 31, 2023
Ten Largest Investment Exposures 1	Fair Value		Percent of Total Investments
Fixed Maturities:
States including their Political Subdivisions:
Texas	$	143.6	1.6	%
California	133.1		1.5
Michigan	93.6		1.0
New York	89.5		1.0
Georgia	80.3		0.9
Louisiana	65.5		0.7
Florida	59.2		0.7
Pennsylvania	59.2		0.7
Colorado	52.9		0.6
Massachusetts	49.2		0.5
Total	$	826.1	9.2	%

1Excluding Investments in U.S. Government and Government Agencies and Authorities at March 31, 2023.

31

Kemper Corporation

Municipal Bond Securities

(Dollars in Millions)

(Unaudited)

	Mar 31, 2023
	State General Obligation		Political Subdivision General Obligation		Revenue		Total Fair Value		Percent of Total Muni Bond1		Percent of Total Investments1
Texas	$	20.7	$	117.4	$	5.5	$	143.6	8.8	%	1.6	%
California	11.1		122.0		—		133.1		8.2		1.5
Michigan	—		82.6		11.0		93.6		5.8		1.0
New York	18.9		70.6		—		89.5		5.5		1.0
Georgia	5.9		69.9		4.5		80.3		4.9		0.9
Louisiana	5.2		28.0		32.3		65.5		4.0		0.7
Florida	—		59.2		—		59.2		3.6		0.7
Pennsylvania	3.0		56.2		—		59.2		3.6		0.7
Colorado	—		52.9		—		52.9		3.3		0.6
Massachusetts	1.3		40.3		7.6		49.2		3.0		0.5
Oregon	2.3		21.4		25.3		49.0		3.0		0.5
Missouri	1.1		42.9		—		44.0		2.7		0.5
Washington	1.3		31.6		7.7		40.6		2.5		0.4
New Mexico	—		39.6		—		39.6		2.4		0.4
Virginia	—		32.0		6.3		38.3		2.4		0.4
Illinois	0.6		37.3		—		37.9		2.3		0.4
Ohio	—		36.0		—		36.0		2.2		0.4
Indiana	—		34.9		—		34.9		2.1		0.4
Minnesota	1.1		33.7		—		34.8		2.1		0.4
Maryland	2.4		29.0		2.0		33.4		2.1		0.4
Connecticut	—		17.1		13.4		30.5		1.9		0.3
District of Columbia	—		20.8		6.3		27.1		1.7		0.3
Tennessee	3.3		19.6		2.1		25.0		1.5		0.3
Mississippi	—		10.9		12.4		23.3		1.4		0.3
Oklahoma	—		23.0		—		23.0		1.4		0.3
Rhode Island	1.6		21.1		—		22.7		1.4		0.2
North Carolina	1.7		18.6		—		20.3		1.3		0.2
Arizona	0.8		18.5		—		19.3		1.2		0.2
New Hampshire	0.4		18.3		—		18.7		1.2		0.2
Utah	—		17.4		—		17.4		1.1		0.2
South Carolina	—		16.2		—		16.2		1.0		0.2
Nebraska	6.1		10.0		—		16.1		1.0		0.2
North Dakota	—		15.7		—		15.7		1.0		0.2
Alabama	—		14.4		—		14.4		0.9		0.2
Kentucky	—		14.1		—		14.1		0.9		0.2
Iowa	—		11.7		—		11.7		0.7		0.1
Montana	—		11.0		—		11.0		0.7		0.1
Alaska	2.7		6.2		1.6		10.5		0.6		0.1
Hawaii	3.4		3.3		3.2		9.9		0.6		0.1
All Other States	9.1		49.2		3.5		61.8		3.8		0.7
Total	$	104.0	$	1,374.6	$	144.7	$	1,623.3	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 Class	Mar 31, 2023		Mar 31, 2023		Dec 31, 2022
Reported as Equity Method Limited Liability Investments:
Mezzanine Debt	$	53.3	$	117.3	$	114.3
Senior Debt	40.7		21.8		21.6
Distressed Debt	—		8.3		9.4
Secondary Transactions	1.7		9.1		9.3
Leveraged Buyout	0.7		9.2		8.9
Growth Equity	—		1.2		1.2
Real Estate	—		43.3		43.3
Hedge Fund	—		0.1		0.5
Other	—		8.4		8.5
Total Equity Method Limited Liability Investments	96.4		218.7		217.0
Alternative Energy Partnership Investments	—		17.0		16.3
Reported as Other Equity Interests at Fair Value:
Mezzanine Debt	62.4		111.4		106.0
Senior Debt	6.0		21.9		21.9
Distressed Debt	13.0		12.7		12.5
Secondary Transactions	4.3		3.1		3.5
Hedge Funds	—		17.7		18.1
Leveraged Buyout	7.9		22.3		21.6
Growth Equity	6.7		6.3		5.4
Real Estate	0.2		0.2		—
Other	—		—		0.1
Total Reported as Other Equity Interests at Fair Value	100.5		195.6		189.1
Reported as Other Equity Interests at Modified Cost:
Other	—		8.3		8.3
Total Reported as Other Equity Interests at Modified Cost	—		8.3		8.3
Total Investments in Limited Liability Companies and Limited Partnerships	$	196.9	$	439.6	$	430.7

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 Maturitiesand the Change in Discount Rate on Future Life Policyholder Benefits 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 the change in discount rate on future life policyholder benefits 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 the change in discount rate on future life policyholder benefits 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, the Change in Discount Rate on Future Life Policyholder Benefits 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, the change in discount rate on future life policyholder benefits 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, the change in discount rate on future life policyholder benefits 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 Loss is an after-tax, non-GAAP financial measure and is computed by excluding from Net 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 three months ended March 31, 2023 or 2022.

The Company believes that Adjusted Consolidated Net Operating Loss provides investors with a valuable measure of its ongoing performance because it reveals underlying operational performance trends that otherwise might be less apparent if the items were not excluded. Income (Loss) from Change in Fair Value of Equity and Convertible Securities, Net Realized Investment Gains (Losses) and Impairment Losses related to investments included in the Company’s results may vary significantly between periods and are generally driven by business decisions and external economic developments such as capital market conditions that impact the values of the Company’s investments, the timing of which is unrelated to the insurance underwriting process. Acquisition 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 Loss to Adjusted Consolidated Net Operating Loss is presented below:

	Three Months Ended
Dollars in Millions (Unaudited)	Mar 31, 2023		Dec 31, 2022		Sep 30, 2022		Jun 30, 2022		Mar 31, 2022
Net Loss	$	(80.1)	$	(53.3)	$	(74.8)	$	(72.2)	$	(86.3)
Less Net Income (Loss) From:
Income (Loss) from Change in Fair Value of Equity and Convertible Securities	1.3		—		(8.8)		(32.0)		(22.3)
Net Realized Investment Gains (Losses)	5.1		3.1		(9.6)		8.7		1.2
Impairment Losses	1.7		(2.9)		(6.6)		(3.9)		(7.0)
Acquisition and Disposition Related Transaction, Integration, Restructuring and Other Costs	(23.0)		(29.1)		(20.7)		(7.8)		(3.7)
Debt Extinguishment, Pension and Other Charges	—		—		—		—		(2.9)
Adjusted Consolidated Net Operating Loss	$	(65.2)	$	(24.4)	$	(29.1)	$	(37.2)	$	(51.6)

Adjusted Consolidated Net Operating Loss 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 Loss Per Unrestricted Share-basic to Adjusted Consolidated Net Operating Income Loss Per Unrestricted Share-basic is presented below:

	Three Months Ended
(Unaudited)	Mar 31, 2023		Dec 31, 2022		Sep 30, 2022		Jun 30, 2022		Mar 31, 2022
Net Loss Per Unrestricted Share	$	(1.25)	$	(0.84)	$	(1.17)	$	(1.13)	$	(1.36)
Less Net Income (Loss) Per Unrestricted Share From:
Income (Loss) from Change in Fair Value of Equity and Convertible Securities	0.02		—		(0.14)		(0.50)		(0.35)
Net Realized Investment Gains (Losses)	0.08		0.05		(0.15)		0.13		0.02
Impairment Losses	0.03		(0.05)		(0.10)		(0.06)		(0.11)
Acquisition and Disposition Related Transaction, Integration, Restructuring and Other Costs	(0.36)		(0.46)		(0.32)		(0.12)		(0.06)
Debt Extinguishment, Pension and Other Charges	—		—		—		—		(0.05)
Adjusted Consolidated Net Operating Loss Per Unrestricted Share	$	(1.02)	$	(0.38)	$	(0.46)	$	(0.58)	$	(0.81)

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

EX-99.3

Earnings Call Presentation – 1Q 2023 First Quarter 2023 Earnings May 8, 2023

Earnings Call Presentation – 1Q 2023 Preliminary Matters 2 Cautionary Statements Regarding Forward-Looking Information This presentation may contain or incorporate by reference information that includes or is based on forward-looking statements within the meaning of the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995. We caution investors that these forward-looking statements are not guarantees of future performance, and actual results may differ materially. Such statements involve known and unknown risks, uncertainties, and other factors, including but not limited to: • changes in the frequency and severity of insurance claims; • claim development and the process of estimating claim reserves; • the impacts of inflation; • changes in interest rate environment; • 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”). Kemper assumes no obligation to publicly correct or update any forward-looking statements as a result of events or developments subsequent to the date of this presentation. Non-GAAP Financial Measures This presentation contains non-GAAP financial measures that the company believes are meaningful to investors. Non-GAAP financial measures have been reconciled to the most comparable GAAP financial measure.

Earnings Call Presentation – 1Q 2023 Target top quartile value creation for customers, employees, and shareholders Leading Insurer Empowering Specialty and Underserved Markets Enabled by a dynamic, diverse, and innovative team who act like owners 3 Distribution Have Limited or Unfocused Competition Require Unique Expertise Sizable Market Delivering appropriate and affordable insurance and financial solutions Specialty auto insurance for underserved markets; Latino, Hispanic and urban areas Life insurance for low/modest income customers Market Characteristics Differentiated Capabilities Product SophisticationEase of UseLow-Cost Management 1 Enable Systematic, Sustainable Competitive Advantages (SSCAs) 2 1 Kemper Auto is equivalent to the Specialty Property & Casualty Insurance Segment 2 Kemper Life is equivalent to the Life & Health Insurance Segment

Earnings Call Presentation – 1Q 2023 First Quarter 2023 Summary 4 Financials impacted and actions taken to combat a continued dynamic operating environment Committed to profit restoration; aggressively pursuing improvement opportunities • Rate actions: ̶ Specialty P&C Private Passenger Auto – Filed an additional 24% increase on 41% of the book ̶ Preferred P&C Personal Auto – Filed an additional 12% increase on 45% of the book • Cumulative written rate benefits continue to earn in at an accelerated rate ̶ Specialty P&C Private Passenger Auto – 27 points of rate on 99% of the book since 2Q’21 ̶ Preferred P&C Personal Auto – 26 points of rate on 76% of the book since 2Q’21 • Further underwriting actions taken including suppressing new business growth until profitability is restored • LAE, expense, and real estate initiatives in line with planned targets • Enhancing tools and cost projection capabilities to minimize environmental uncertainties Actions Taken Weather, mix, and evolving development patterns pressure financial results • Net loss of $80 million ($1.25/sh), as reported • Adjusted consolidated net operating loss1 of $65 million ($1.02/sh), as reported • (10)% ROAE1,2; (14)% ROAE1,2 excluding net unrealized (gains) losses on fixed maturities, changes in the discount rate on future life policyholder benefits, and goodwill1 • Total pre-tax catastrophe losses of $29 million • Pre-tax non-catastrophe results driven by: ̶ Unfavorable prior year reserve development of $42 million (inclusive of $3M of catastrophe losses) ̶ Elevated frequency driven by non-catastrophe weather and mix (state and coverage, new / renewal) 1st Quarter Results Capital and liquidity positions enable the company to navigate current environment • Holding company remains a source of strength for subsidiaries with approximately $1 billion of liquidity • Insurance companies appropriately capitalized with significant sources of liquidity Balance Sheet Strength 1 Non-GAAP financial measure; please see reconciliation in appendix on pages 24-30 2 Return on average shareholders’ equity (5-point average)

Earnings Call Presentation – 1Q 2023 Quarter and Post-Pandemic Reopening Themes1 5 Re-opening defined by evolving reporting patterns and continued severity inflation Enhancing tools and cost projection capabilities to minimize environmental uncertainties 1Q’23 Severity Index (Indexed to 1Q’19) Long-Term Themes • Loss costs continue to be pressured by rising: ̶ Used car prices ̶ Repairs cost (labor rates, car parts, etc.) ̶ Medical care costs Sequential Quarter Frequency Short-Term Themes • An atypical frequency pattern was experienced this quarter driven by: ̶ Non-catastrophe weather ̶ Mix (state and coverage, new / renewal business) (6.3)% 3.7% 4Q'21 to 1Q'22 4Q'22 to 1Q'23 35.9% 12.3% Severity Index Average Earned Premium Index 23.6 pts Gap 1 Themes and figures representative of Kemper Specialty Private Passenger Auto

Earnings Call Presentation – 1Q 2023 First Quarter 2023 Financial Summary 6 Focus remains on restoring business to profitability Continuing to take rate, non-rate and cost structure actions to restore profitability Quarter Ended ($ in millions, except per share amounts) Mar 31, 2023 Mar 31, 2022 Net Loss – Per Diluted Share $(1.25) $(1.36) Adj. Consolidated Net Operating Loss – Per Diluted Share1 $(1.02) $(0.81) Tangible Book Value – Per Diluted Share1 $27.61 $32.55 Return on Avg. Tangible Common Equity1 (14.2)% (21.7)% Dividends Paid to Shareholders Per Share $0.31 $0.31 Life Face Value of In-Force YoY Growth / (Decline) (0.4)% 2.2% Specialty P&C Earned Premium YoY Growth / (Decline)2 (7.6)% 5.8% Specialty P&C PIF YoY Growth / (Decline)2 (21.3)% (0.9)% 1 Non-GAAP financial measure; please see reconciliation in appendix on pages 24-30 2 As adjusted for acquisitions

Earnings Call Presentation – 1Q 2023 Kemper P&C Business Reserve Update 7 Unanticipated extension in claim reporting timelines with more claims closing with payment Prior year adverse development of approximately $42 million • Specialty P&C1 adverse development of $31 million ̶ Private Passenger Auto development driven by adverse Bodily Injury and Property Damage patterns • Elongated development patterns • More claims closing with payment ̶ Commercial Vehicle driven by adverse Bodily Injury • Preferred P&C2 adverse development of $10 million ̶ Unexpected delay in medical treatments ̶ Additional development on 4Q'22 catastrophes losses and non-catastrophe weather events • Property Insurance3 adverse development of $1 million Quickly recognized and reacted to pattern changes to address impact of evolving trends 1 Specialty P&C is represented by the Kemper Auto Brand 2 Preferred P&C is represented by Kemper Personal Insurance 3 Property Insurance is part of the Life & Health Insurance Segment Specialty P&C PYD Preferred P&C PYD $19 $12 $31 3Q'22 & 4Q'22 Frequency Other Total ($ M ) ($ M ) $(1) $11 $10 3Q'22 & 4Q'22 Frequency Other Total

Earnings Call Presentation – 1Q 2023 First Quarter Normalizing Adjustments 8 Results impacted by weather, mix, and evolving development patterns Expect accelerated underwriting improvements to positively impact profit restoration First Quarter 2023 Ratios Specialty P&C (%) Preferred P&C (%) 4Q’22 Reported Underlying Combined Ratios1 107.8 106.6 Base Year Adjustment (Prior Year Development) (0.3) (1.7) P&C 4Q’22 Base Yr. Adj. Underlying Combined Ratios 107.5 104.9 Traditional Seasonality Pattern (Q1 vs. Q4)² (6.5) (2.2) Frequency Trend 3.2 (2.0) Severity Trend 5.8 1.7 Earned Rate (4.2) (1.9) Other³ 2.2 (3.4) 1Q’23 Reported Underlying Combined Ratios 108.0 97.1 1 Non-GAAP financial measure; see reconciliation in appendix on pages 24-30 2 Based on historical frequency seasonality patterns for frequency and severity 3 Includes A&O, operating expenses, and other items

Earnings Call Presentation – 1Q 2023 Forecasting underwriting improvement in 2023 due to rate and non-rate actions taken Specialty P&C Path to Underwriting Profit Modestly revising guidance to incorporate unanticipated higher loss ratio starting point 9 1Q’23 Actuals and Assumptions Included in Guidance1 1Q’23 Actual 2Q’23 Estimate 2H’23 Estimate Earned Rate 4.2 pts​ 5 – 6 pts​ 8.5 – 9.5 pts​ Frequency 2.0 pts (1) - 0 pts (1) – 0 pts Severity (4-9% annual inflation) (0.4) pts 1 – 2 pts 2 – 4 pts Net Loss Trend 1.6 pts​ 1 – 2 pts​ 1 – 4 pts​ Expense Savings 0 pts 0 – 1 pts 0 – 1 pts Catastrophe Losses 0.9 pts 0.5 – 1.5 pts 0.5 – 1.0 pts PY & CYPQ Development2 3.2 pts – pts – pts 1 Not normalized; intra-year development assumed to be zero 2 Denotes Prior Year & Current Year Prior Quarter Development • 2Q'23 underlying combined ratio between 103% and 107% • Underlying combined ratio below 100% in the second half of 2023 • 2024 Return on Equity (ROE) greater than 10%

Earnings Call Presentation – 1Q 2023 1. Takeaways • Guidance modestly updated to incorporate unanticipated base-year adjustment • Business expected to reach target returns in 2024 • Unit growth suppressed until the business reports a 97 combined ratio or better • Environment continues to be dynamic 2. Risks • Frequency materially above 2019 levels • Weather / event-risk • Changes to loss development patterns • Rate approval delays (particularly CA) Aggressive and comprehensive approach underway to realign pricing to cost inflation Specialty P&C Path to Underwriting Profit Overcoming loss cost pressures through rate, non-rate, and expense actions 10 Fighting loss cost pressure through rate, non-rate, nd expense actions

Earnings Call Presentation – 1Q 2023 Life & Health – Summary of LDTI Impact 11 Largest impact from LDTI is the fair value of Life liabilities within the balance sheet Standard provides transparency into how liability valuations align with asset valuation changes Long Duration Targeted Improvements (LDTI): • New accounting standard was adopted on a modified retrospective basis as of January 1, 2023 • Recast year-end shareholders’ equity reflects an increase of $227M; AOCI increased by $241M Presentation Differences: • Fair value of life liabilities enables asset liability matching transparency • Expect greater movements for deferred profit liability than under FAS 60 due to changes to net premiums • Experience is updated quarterly • Future assumptions are reviewed at least annually; any changes typically updated in Q4 • Deferred acquisition costs are amortized on a straight-line basis

Earnings Call Presentation – 1Q 2023 Strategic Initiatives Update 12 Projects proceeding to expectations On track to realize benefits of strategic initiatives 1. Establishment of Reciprocal Exchange Structure: • Engagement with regulators to complete approval process • On-track to write auto business in the structure during 3Q’23 2. Proceeding with the Bermuda Optimization effort to release an additional ~$100M in Life dividends to parent 3. Strategic review of Kemper Personal Insurance¹: • Business assessment continues • Expect additional details prior to the end of 2Q’23 4. Streamlining Cost Structure • On-track to provide greater than $125M of run rate savings by year end 2023 and $150M or greater in annual benefits by 2025 1 Kemper Personal Insurance is equivalent to the Preferred P&C Insurance Segment

Company Confidential – DO NOT DISTRIBUTE Streamlining Our Cost Structure 13 Advancing differentiated capabilities to strengthen systematic, sustainable competitive advantages Initiatives accelerate return to profitability and enhance long-term value creation 87 61 150 4Q'22 1Q'23 2Q'23 3Q'23 4Q'23 FY'24-FY'25 Proj. Prog. Total Run Rate Program Savings ($ millions)• Restructuring and integration pre-tax charges of $150M - $200M will produce an annualized savings of $150M or greater • Since its inception, this program has driven total run rate savings of $87M, and we have incurred total pre-tax charges of $65M (Pre-tax, $ in millions) 1Q’23 Total Program % Reached R u n R at e S av in gs Loss Adjustment Expense (LAE) Improvements $36 $80-$120 30-45% Enterprise Expense Initiatives (ex-Real Estate & LAE) $41 $60-$70 59-68% Real Estate Optimization $10 $10 100% Total Program Savings $87 $150+ 44-58% Cumulative Earned Savings $20 Cumulative Associated Charges $65 $150-$200 33%-43%

Earnings Call Presentation – 1Q 2023 410 355 340 355 645 625 285 365 330 220 240 245 2018 2019 2020 2021 2022 1Q'23 Well-Capitalized Insurance Subsidiaries 14 Continued access to significant sources of liquidity Profit initiatives underway to restore cash flow from operating activities and return debt-to-capital to target range of 17% to 22% 23.1% 17.6% 23.2% 24.1% 30.3% 30.9% 2018 2019 2020 2021 2022 1Q'23 Debt-to-Capital 3 Parent Company Liquidity Risk-Based Capital Ratios¹ $540 $660 $700 $704 $918 $810 $101 $207 $733 $234 $418 $241 $641 $867 $1,433 $938 $1,336 $1,051 2018 2019 2020 2021 2022 1Q'23 ($ M ) (% ) Debt Cash Flow from Operating Activities ($ M ) $539 $534 $448 $351 $(220) $(197) 2018 2019 2020 2021 2022 1Q'23 TTM HoldCo Cash & Investments Borrowings Available Under Credit Agreement & from Subs P&C (ex. AACC) Life2 1 1Q’23 Risk-Based Capital Ratios are calculated at the Company Action Level and are estimated; actual RBC levels are likely to differ, but will not be known prior to May 8, 2023 | 2 Life Risk-Based Capital Ratios exclude business ceded to Kemper Bermuda Ltd. (KBL) | 3 Excludes AOCI: closely aligns with rating agencies and post-LDTI implementation

Earnings Call Presentation – 1Q 2023 Diversified Investment Portfolio with Consistent Returns 15 55% 18% 6% 6% 5% 7% 3% Other States/ Munis COLI 72% 24% 3% 1% Diversified and Highly-Rated Portfolio Fixed Maturity Ratings $7.2 Billion A or Higher ≤ CCCB / BB BBB • High quality and liquid portfolio provides consistent net investment income; 72% of fixed income portfolio rated A or higher • Banking sector exposure of ~3% concentrated in large money center banks; no exposure to failed or assumed institutions • New investment yields up 225 – 250 bps over prior year • Strong ALM philosophy that mitigates long- term economic and short-term valuation mismatches $79 $85 $90 $95 $98 $21 $34 $8 $11 $4 $100 $119 $98 $106 $102 1Q'22 2Q'22 3Q'22 4Q'22 1Q'23 Core Portfolio Alternative Inv. Portfolio Net Investment Income ($ M ) Highlights Corporates Alternatives U.S Gov’t Portfolio Composition1 Pre-Tax Equiv. Annualized Book Yield $9.1 Billion Short Term 1 Other category includes Equity Securities, which excludes $204M of Other Equity Interests of LPs/LLCs that have been reclassified into Alternative Investments; COLI represents Company Owned Life Insurance

Earnings Call Presentation – 1Q 2023 Specialty Property & Casualty Insurance Segment 16 Weather and mix pressured financial results 108.7 108.8 106.8 107.8 108.0 1Q'22 2Q'22 3Q'22 4Q'22 1Q'23 Underlying Combined Ratio2 (% ) Highlights • Non-catastrophe weather and mix impacted profit restoration actions • Rate of severity increase is moderating • Current year catastrophe losses of $8M located in California and Texas • 6.9% California rate approval, effective in January • Florida tort reform is expected to improve long- term litigation climate Metrics ($ in millions) 1Q’23 1Q’22 Change vs. 1Q’22 Earned Premiums $944 $1,022 (7.6)% Underlying Loss & LAE Ratio2 87.5% 89.2% (1.7)pts Expense Ratio 20.5% 19.5% 1.0pts Policies In-Force (000s) 1,689 2,146 (21.3)% Cumulative PPA Rate Activity Since 2Q’211 11.9% 45.4% 6.1% 22.7% 1.0% 12.5% ~51% ~24% ~17% 3Q'21 4Q'21 1Q'22 2Q'22 3Q'22 4Q'22 1Q'23 2Q'23E Filed Rate Written rate Earned rate 1 Represents the percent of total book impacted in the quarter and the weighted average rate of actual filings 2 Non-GAAP financial measure; see reconciliation in appendix on pages 24-30 Committed to reaching target profitability in 2024 despite dynamic environment

Earnings Call Presentation – 1Q 2023 Preferred Property & Casualty Insurance Segment 17 Benefits of profit restoration actions and lower frequency offset by higher catastrophes 116.3 113.0 115.4 118.3 111.8 86.7 92.3 85.9 89.2 77.8 1Q'22 2Q'22 3Q'22 4Q'22 1Q'23 Underlying Combined Ratio2 Auto Home & Other Highlights • Underlying combined ratio improved sequentially due to lower frequency from profit restoration actions & seasonality • Current year catastrophe losses of $17M • Business remains under strategic review (% )Metrics ($ in millions) 1Q’23 1Q’22 Change vs. 1Q’22 Auto Earned Premiums $78 $96 (18.8)% Policies In-Force (000s) 146 195 (25.1)% Home & Other Earned Premiums $59 $60 (1.7)% Policies In-Force (000s) 161 204 (21.1)% Cumulative PPA Rate Activity Since 2Q’211 12.0% 32.1% 5.2% 17.4% 0.6% 6.6% ~33% ~21% ~10% 3Q'21 4Q'21 1Q'22 2Q'22 3Q'22 4Q'22 1Q'23 2Q'23E Filed Rate Written rate Earned rate Committed to restoring profitability and optimizing the use of shareholder capital 1 Represents the percent of total book impacted in the quarter and the weighted average rate of actual filings 2 Non-GAAP financial measure; see reconciliation in appendix on pages 24-30

Earnings Call Presentation – 1Q 2023 Life & Health Insurance Segment 18 Business trends remain stable; mortality continues to normalize toward pre-pandemic levels Progressing to pre-pandemic profitability as result of underwriting and expense actions as well as mortality decreasing to pre-pandemic levels $102 $104 $102 $117 $99 $49 $62 $52 $52 $50 $151 $166 $154 $169 $149 1Q'22 2Q'22 3Q'22 4Q'22 1Q'23 Revenues3 ($M) Earned Premiums Net Investment Income • Effective January 1, 2023, financials reflect recently issued LDTI accounting pronouncement • Mortality over the last four quarters near pre-pandemic levels, albeit claims modestly increased sequentially • New money yields are at or above spread assumptions Highlights Metrics1 ($ in millions, except per policy amounts) 1Q’23 1Q’22 Change vs. 1Q’22 L&H Net Operating Income $13 $12 8.3% Life Face Value of In-Force $20,090 $20,164 (0.4)% Avg. Face Value per Policy $6,292 $6,172 1.9% Avg. Premium per Policy Issued2 $583 $554 5.2% 1 Excludes Reserve National | 2 Annual basis 3 Excludes other income and solar credit impairment, Reserve National revenues due to sale, and reflects accounting under new accounting standard (ASU 2018-12)

Earnings Call Presentation – 1Q 2023 On Track to Return to Profitability in 2023 19 Committed to restoring profit and delivering value to shareholders Key Takeaways • Re-opening defined by evolving reporting patterns and continued severity inflation • Expect accelerated underwriting improvements to positively impact profit restoration • Guidance modestly revised to incorporate unanticipated base-year adjustment • The financial benefits of restructuring and integration initiatives on track to produce targeted expense savings

Earnings Call Presentation – 1Q 2023 Appendix 20

Earnings Call Presentation – 1Q 2023 U.S. Bank Exposure Summary 21 Banking / Broker sector represents ~3% of Portfolio AA 4% A 62% BBB 24% < BBB 10% $0.3 Billion1 Average rating of A Focus is on high quality, investment grade banks Several bank failures have led to contagion fears for banking industry Issuer Market Value ($M) % of Bank Exposure1 JPMorgan $37 13% Bank of America $32 11% Morgan Stanley $24 8% Wells Fargo $23 8% Goldman Sachs $22 7% Citigroup $19 7% Royal Bank of Canada $16 5% Charles Schwab $14 5% Truist Financial $13 5% Suntrust Banks $10 3% Top 10 Issuers $210 72% 1 Breakdown includes fixed maturities, preferred stocks, and convertible securities

Earnings Call Presentation – 1Q 2023 22 Elevated Auto Severity Persists Due to Continued Inflationary Pressures • Physical damage severity remains elevated due to higher used car values, replacement parts, and labor costs ̶ Body Work-related costs steadily increased in Q1, growing nearly double the rate of US Core Inflation ̶ Value of used cars continued to decline in Q1 • Casualty severity tempered in Q1 but remains elevated due to more severe injuries, medical inflation, and greater attorney representation Price Indices (Indexed to Q4 2018) Source: U.S. Bureau of Labor Statistics

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

Earnings Call Presentation – 1Q 2023 Non-GAAP Financial Measures 24 Book Value Per Share Excluding Net Unrealized (Gains) Losses on Fixed Maturities and the Change in Discount Rate on Future Life Policyholder Benefits 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 the change in discount rate on future life policyholder benefits 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 the change in discount rate on future life policyholder benefits 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, the Change in Discount Rate on Future Life Policyholder Benefits 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, the change in discount rate on future life policyholder benefits 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, the change in discount rate on future life policyholder benefits 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. 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.

Earnings Call Presentation – 1Q 2023 Non-GAAP Financial Measures 25 Kemper believes that Adjusted Consolidated Net Operating Income (Loss) provides investors with a valuable measure of its ongoing performance because it reveals underlying operational performance trends that otherwise might be less apparent if the items were not excluded. Income (Loss) from Change in Fair Value of Equity and Convertible Securities, Net Realized Investment Gains (Losses) and Impairment Losses related to investments included in the Company’s results may vary significantly between periods and are generally driven by business decisions and external economic developments such as capital market conditions that impact the values of the Company’s investments, the timing of which is unrelated to the insurance underwriting process. Acquisition Related Transaction and Integration Costs may vary significantly between periods and are generally driven by the timing of acquisitions and business decisions which are unrelated to the insurance underwriting process. Debt Extinguishment, Pension and Other Charges relate to (i) loss from early extinguishment of debt, which is driven by the Company’s financing and refinancing decisions and capital needs, as well as external economic developments such as debt market conditions, the timing of which is unrelated to the insurance underwriting process; (ii) settlement of pension plan obligations which are business decisions are made by the Company, the timing of which is unrelated to the underwriting process; and (iii) other charges that are non-standard, not part of the ordinary course of business, and unrelated to the insurance underwriting process. Significant non-recurring items are excluded because, by their nature, they are not indicative of the Company’s business or economic trends. Underlying Combined Ratio is a non-GAAP financial measure. It is computed by adding the Current Year Non-catastrophe Losses and LAE Ratio with the Insurance Expense Ratio. The most directly comparable GAAP financial measure is the Combined Ratio, which is computed by adding total incurred losses and LAE, including the impact of catastrophe losses and loss and LAE reserve development from prior years, with the Insurance Expense Ratio. The Company believes the underlying combined ratio is useful to investors and is used by management to reveal the trends in the Company’s property and casualty insurance businesses that may be obscured by catastrophe losses and prior-year reserve development. These catastrophe losses cause loss trends to vary significantly between periods as a result of their incidence of occurrence and magnitude and can have a significant impact on the combined ratio. Prior-year reserve developments are caused by unexpected loss development on historical reserves. Because reserve development relates to the re-estimation of losses from earlier periods, it has no bearing on the performance of our insurance products in the current period. The Company believes it is useful for investors to evaluate these components separately and in the aggregate when reviewing the Company’s underwriting performance. The underlying combined ratio should not be considered a substitute for the combined ratio and does not reflect the overall underwriting profitability of our business.

Earnings Call Presentation – 1Q 2023 Non-GAAP Financial Measures 26 Book Value As of ​($ per share) March 31, 2023 March 31, 2022​ Book Value $41.37 $46.54​ Less: Net Unrealized (Gains) Losses on Fixed Maturities 6.56 6.57​ Book Value Excluding Net Unrealized (Gains) Losses on Fixed Maturities and Changes in the Discount Rate on Future Life Policyholder Benefits $47.93 $53.11​ Less: Goodwill​ (20.32)​ (20.56)​ Book Value Excluding Net Unrealized (Gains) Losses on Fixed Maturities, Changes in the Discount Rate on Future Life Policyholder Benefits, and Goodwill $27.61 $32.55

Earnings Call Presentation – 1Q 2023 Non-GAAP Financial Measures 27 Return on Equity As of March 31, 2023​ March 31, 2022 Rolling 12 Months Return on Average Shareholders' Equity (5-point Average) (10.1)%​ (9.9)%​ Less: Net Unrealized (Gains) Losses on Fixed Maturities 1.5 (1.9) Rolling 12 Months Return on Average Shareholders' Equity Excluding Net Unrealized (Gains) Losses on Fixed Maturities and Changes in the Discount Rate on Future Life Policyholder Benefits (5-point Average) (8.6)%​ (11.8)%​ Less: Goodwill (5.6) (9.9) Rolling 12 Months Return on Average Shareholders' Equity Excluding Net Unrealized (Gains) Losses on Fixed Maturities, Changes in the Discount Rate on Future Life Policyholder Benefits, and Goodwill (5-point Average) (14.2)% (21.7)%

Earnings Call Presentation – 1Q 2023 Non-GAAP Financial Measures 28 Diluted Adjusted Consolidated Net Operating Income (Loss) Per Unrestricted Share is a non-GAAP financial measure computed by dividing Adjusted Consolidated Net Operating Income (Loss) attributed to unrestricted shares by the weighted-average unrestricted shares and equivalent shares outstanding. The most directly comparable GAAP financial measure is Diluted Net Income (Loss) Per Unrestricted Share. Kemper believes that Diluted Adjusted Consolidated Net Operating Income (Loss) Per Unrestricted Share provides investors with a valuable measure of its ongoing performance because it reveals underlying operational performance trends that otherwise might be less apparent if the items were not excluded. Income from change in fair value of equity and convertible securities, net realized investment gains (losses), impairment losses related to investments, acquisition related transaction, integration and other costs and loss from early extinguishment of debt included in Kemper’s results may vary significantly between periods and are generally driven by business decisions and external economic developments such as capital market conditions that impact the values of the company’s investments, the timing of which is unrelated to the insurance underwriting process. Three Months Ended ​​($ per share) March 31, 2023​ March 31, 2022 Net Loss – Diluted $(1.25) $(1.36) Net (Income) Loss From: Change in Fair Value of Equity & Convertible Securities (0.02) 0.35 Net Realized Investment (Gains) Losses (0.08) (0.02) Impairment Losses (0.03) 0.11 Acquisition and Disposition Related Transaction, Integration, Restructuring, and Other Costs 0.36 0.06 Debt Extinguishment, Pension, and Other Charges - 0.05 Adjusted Consolidated Net Operating Loss – Diluted $(1.02) $(0.81)

Earnings Call Presentation – 1Q 2023 Three Months Ended 1Q'23 4Q'22 3Q'22 2Q'22 1Q'22 Specialty P&C Insurance Combined Ratio as Reported 112.1% 108.8% 107.6% 108.0% 108.6% Current Year Catastrophe Losses and LAE Ratio (0.9) 0.0 (1.5) (0.6) (0.2) Prior Years Non-Catastrophe Losses and LAE Ratio (3.3) (1.0) 0.7 1.4 0.4 Prior Years Catastrophe Losses and LAE Ratio 0.1 0.0 0.0 0.0 (0.1) Underlying Combined Ratio 108.0% 107.8% 106.8% 108.8% 108.7% Preferred P&C Insurance Combined Ratio as Reported 116.6% 111.2% 110.1% 121.7% 111.6% Current Year Catastrophe Losses and LAE Ratio (12.4) (6.3) (7.2) (15.7) (7.3) Prior Years Non-Catastrophe Losses and LAE Ratio (5.0) 0.6 0.2 (1.2) (1.3) Prior Years Catastrophe Losses and LAE Ratio (2.1) 1.1 0.5 0.5 2.1 Underlying Combined Ratio 97.1% 106.6% 103.6% 105.3% 105.1% Preferred Auto Combined Ratio as Reported 117.6% 118.9% 116.9% 114.7% 118.5% Current Year Catastrophe Losses and LAE Ratio (1.5) (0.7) (1.2) (1.7) (0.5) Prior Years Non-Catastrophe Losses and LAE Ratio (3.7) (0.1) (0.2) 0.0 (1.6) Prior Years Catastrophe Losses and LAE Ratio (0.6) 0.2 (0.1) 0.0 (0.1) Underlying Combined Ratio 111.8% 118.3% 115.4% 113.0% 116.3% Preferred Home & Other Combined Ratio as Reported 115.4% 99.8% 100.0% 133.3% 100.5% Current Year Catastrophe Losses and LAE Ratio (26.7) (14.5) (16.2) (39.2) (18.3) Prior Years Non-Catastrophe Losses and LAE Ratio (6.8) 1.6 0.8 (3.2) (1.0) Prior Years Catastrophe Losses and LAE Ratio (4.1) 2.3 1.3 1.4 5.5 Underlying Combined Ratio 77.8% 89.2% 85.9% 92.3% 86.7% Non-GAAP Financial Measures 29 Underlying Combined Ratio

Earnings Call Presentation – 1Q 2023 Non-GAAP Financial Measures 30 Life & Health Revenue Reconciliation Three Months Ended ($ in millions) 1Q'23 4Q'22 3Q'22 2Q'22 1Q'22 Earned Premiums Earned Premiums – As Reported $99.3 $142.6 $142.1 $144.0 $142.8 Less: Reserve National Earned Premiums - 25.6 40.2 39.8 40.6 Adjusted Earned Premiums $99.3 $117.0 $101.9 $104.2 $102.2 Net Investment Income Net Investment Income – As Reported $49.8 $52.6 $52.6 $61.9 $49.4 Less: Reserve National Net Investment Income - 0.2 0.3 0.3 0.3 Adjusted Net Investment Income $49.8 $52.4 $52.3 $61.6 $49.1

Earnings Call Presentation – 1Q 2023 LDTI Summary 31 Three Months Ended March 31, 2022 Twelve Months Ended December 31, 2022 ($ in millions, except per share amounts) Prior to Adoption Effect of Adoption Post- Adoption Prior to Adoption Effect of Adoption Post- Adoption LDTI Impact on Net Income (Loss) Earned Premiums $1,338.6 (18.6) $1,320.0 $5,266.3 (52.9) $5,213.4 Policy Holders Benefits and Incurred Losses and LAE $1,153.4 (30.2) $1,123.2 $4,504.4 (71.8) $4,432.6 Total Insurance Expenses $304.0 0.8 $304.8 $1,200.6 0.4 $1,201.0 Pre-Tax Operating Income $(126.5) 10.8 $(115.7) $(389.5) 18.5 $(371.0) Tax Benefit (Expense) $31.7 (2.3) $29.4 $88.3 (3.9) $84.4 LDTI Impacts to Net Income (Loss) $(94.8) 8.5 $(86.3) $(301.2) 14.6 $(286.6) LDTI Impact to Income (Loss) Per Unrestricted Share Basic - Net Income (Loss) $(1.49) $0.13 $(1.36) $(4.72) $0.23 $(4.49) Basic - Adjusted Consolidated Net Income (Loss) $(1.49) $0.13 $(1.36) $(4.72) $0.23 $(4.49) Diluted – Net Income (Loss) $(1.49) $0.13 $(1.36) $(4.72) $0.23 $(4.49) Diluted – Adjusted Consolidated Net Income (Loss) $(1.49) $0.13 $(1.36) $(4.72) $0.23 $(4.49) As of ($ in millions) December 31, 2022 December 31, 2021 December 31, 2020 Equity Retained Earnings $(13.7) $(28.3) $(25.1) Insurance Reserves – Discount Rate 305.0 (1,075.7) (1,304.2) Insurance Reserves – Discount Rate Taxes (63.9) 226.0 273.9 Net Increase (Decrease) to AOCI 241.1 (849.7) (1,030.3) Total Equity Impact $227.4 $(878.0) $(1,055.4)

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Document and Entity Information	May 08, 2023
Cover [Abstract]
Document Type	8-K
Document Period End Date	May 08, 2023
Entity Registrant Name	Kemper Corporation
Entity Central Index Key	0000860748
Amendment Flag	false
Entity File Number	001-18298
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	95-4255452
Entity Address, Address Line One	200 E. Randolph Street
Entity Address, Address Line Two	Suite 3300
Entity Address, City or Town	Chicago
Entity Address, State or Province	IL
Entity Address, Postal Zip Code	60601
City Area Code	312
Local Phone Number	661-4600
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Entity Emerging Growth Company	false
Common Stock
Cover [Abstract]
Title of 12(b) Security	Common Stock, par value $0.10 per share
Trading Symbol	KMPR
Security Exchange Name	NYSE
Entity Listings [Line Items]
Trading Symbol	KMPR
Security Exchange Name	NYSE
Title of 12(b) Security	Common Stock, par value $0.10 per share
5.875% Fixed-Rate Reset Junior Subordinated Debentures due 2062
Cover [Abstract]
Title of 12(b) Security	5.875% Fixed-Rate Reset Junior Subordinated Debentures due 2062
Trading Symbol	KMPB
Security Exchange Name	NYSE
Entity Listings [Line Items]
Trading Symbol	KMPB
Security Exchange Name	NYSE
Title of 12(b) Security	5.875% Fixed-Rate Reset Junior Subordinated Debentures due 2062