EX-99.2 3 kmpr202409302024ex992suppl.htm EX-99.2 Document

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Investor Supplement
Third Quarter 2024

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 and trends;
•investment risks;
•cybersecurity risks or incidents;
•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”).

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 29-32.





Kemper Corporation
Investor Supplement
Third Quarter 2024
Table of Contents
 
 Page
Consolidated Financial Highlights3-4
Consolidated Statements of Income (Loss)
5
Consolidated Balance Sheets6-7
Consolidated Statements of Cash Flows8-9
Capital Metrics10
Debt Outstanding, Federal Home Loan Bank Advances and Ratings
11
Adjusted Segment Summary Results:
Revenues12
Adjusted Operating Income (Loss)13
Adjusted Net Operating Income (Loss)13
Catastrophe Frequency and Severity14-15
Specialty Property & Casualty Insurance Segment - Results of Operations and Selected Financial Information16-17
Personal Automobile Insurance18
Commercial Automobile Insurance19
Life Insurance Segment - Results of Operations and Selected Financial Information20-21
Expenses22
Details of Investment Performance23
Details of Invested Assets24-25
Investment Concentration26
Municipal Bond Securities27
Investments in Limited Liability Companies and Limited Partnerships28
Definitions of Non-GAAP Financial Measures29-32














Kemper Corporation
Consolidated Financial Highlights
(Dollars in Millions, Except Per Share Amounts)
(Unaudited)
 Three Months EndedNine Months Ended
Sep 30, 2024Jun 30, 2024Mar 31, 2024Dec 31, 2023Sep 30, 2023Jun 30, 2023Mar 31, 2023Sep 30,
2024		Sep 30,
2023
For Period Ended
Earned Premiums
$1,068.5 $1,033.7 $1,031.9 $1,063.8 $1,117.8 $1,166.9 $1,180.9 $3,134.1 $3,465.6 
Net Investment Income
111.1 93.0 100.4 104.6 107.0 106.3 101.8 304.5 315.1 
Change in Value of Alternative Energy Partnership Investments0.5 0.6 0.4 0.6 0.8 0.8 0.7 1.5 2.3 
Other Income2.2 2.4 1.8 1.9 2.4 1.7 1.2 6.4 5.3 
Change in Fair Value of Equity and Convertible Securities(2.3)(1.2)3.4 (2.2)2.8 2.4 1.7 (0.1)6.9 
Net Realized Investment Gains (Losses)(1.1)1.4 5.1 18.5 (31.4)(15.3)8.5 5.4 (38.2)
Investment and Other Income110.4 96.2 111.1 123.4 81.6 95.9 113.9 317.7 291.4 
Total Revenues
$1,178.9 $1,129.9 $1,143.0 $1,187.2 $1,199.4 $1,262.8 $1,294.8 $3,451.8 $3,757.0 
Net Income (Loss)
$72.2 $74.4 $70.2 $51.3 $(146.4)$(97.1)$(80.1)$216.8 $(323.6)
Less: Net Loss attributable to Noncontrolling Interest(1.5)(1.0)(1.1)(0.1)(0.1)— — (3.6)(0.1)
Net Income (Loss) attributable to Kemper Corporation
$73.7 $75.4 $71.3 $51.4 $(146.3)$(97.1)$(80.1)$220.4 $(323.5)
Adjusted Consolidated Net Operating Income (Loss)1
$105.0 $91.7 $69.7 $50.5 $(27.8)$(14.2)$(55.7)$266.4 $(97.7)
Per Unrestricted Common Share Amounts:
Basic:
Net Income (Loss) attributable to Kemper Corporation per Unrestricted Share:
$1.15 $1.17 $1.11 $0.80 $(2.28)$(1.52)$(1.25)$3.43 $(5.05)
Adjusted Consolidated Net Operating Income (Loss)1
$1.63 $1.43 $1.08 $0.79 $(0.44)$(0.22)$(0.87)$4.14 $(1.53)
Diluted:
Net Income (Loss) attributable to Kemper Corporation per Unrestricted Share:
$1.14 $1.16 $1.10 $0.80 $(2.28)$(1.52)$(1.25)$3.40 $(5.05)
Adjusted Consolidated Net Operating Income (Loss)1
$1.62 $1.42 $1.07 $0.78 $(0.44)$(0.22)$(0.87)$4.11 $(1.53)
Dividends Paid to Shareholders Per Share
$0.31 $0.31 $0.31 $0.31 $0.31 $0.31 $0.31 $0.93 $0.93 
Return on Shareholders' Equity10.8 %11.5 %11.2 %8.4 %(24.0)%(15.1)%(12.1)%11.2 %(16.9)%
Return on Adjusted Shareholders' Equity1
16.7 %17.6 %17.2 %12.7 %(35.4)%(22.4)%(17.7)%17.2 %(24.9)%
1Non-GAAP Financial Measure. See pages 29-32 for definition.
3

Kemper Corporation
Consolidated Financial Highlights
(Dollars in Millions, Except Per Share Amounts)
(Unaudited)
As of
Sep 30, 2024Jun 30, 2024Mar 31, 2024Dec 31, 2023Sep 30, 2023Jun 30, 2023Mar 31, 2023
At Period End
Total Assets
$12,873.0 $12,544.3 $12,625.9 $12,742.7 $12,549.3 $13,096.3 $13,403.7 
Insurance Reserves
$6,012.7 $5,769.2 $5,891.5 $6,102.9 $5,822.6 $6,043.9 $6,120.7 
Debt
$1,390.9 $1,390.4 $1,389.8 $1,389.2 $1,388.6 $1,388.1 $1,387.5 
Kemper Corporation Shareholders’ Equity$2,773.3 $2,671.2 $2,589.8 $2,505.2 $2,361.3 $2,512.2 $2,646.9 
Book Value Per Share2
$43.30 $41.46 $40.24 $39.08 $36.85 $39.22 $41.37 
Adjusted Book Value Per Share1,2
$27.88 $27.14 $26.19 $25.39 $24.94 $26.66 $27.61 
Debt to Total Capitalization2
33.4 %34.2 %34.9 %35.7 %37.0 %35.6 %34.4 %
1Non-GAAP Financial Measure. See pages 29-32 for definition.
2See Capital Metrics on page 10 for detail calculations.
4

Kemper Corporation
Consolidated Statements of Income (Loss)
(Dollars in Millions, Except Per Share Amounts)
(Unaudited)
 Three Months EndedNine Months Ended
 Sep 30, 2024Jun 30, 2024Mar 31, 2024Dec 31, 2023Sep 30, 2023Jun 30, 2023Mar 31, 2023Sep 30,
2024		Sep 30,
2023
Revenues:
Earned Premiums$1,068.5 $1,033.7 $1,031.9 $1,063.8 $1,117.8 $1,166.9 $1,180.9 $3,134.1 $3,465.6 
Net Investment Income111.1 93.0 100.4 104.6 107.0 106.3 101.8 304.5 315.1 
Change in Value of Alternative Energy Partnership Investments0.5 0.6 0.4 0.6 0.8 0.8 0.7 1.5 2.3 
Other Income2.2 2.4 1.8 1.9 2.4 1.7 1.2 6.4 5.3 
Change in Fair Value of Equity and Convertible Securities(2.3)(1.2)3.4 (2.2)2.8 2.4 1.7 (0.1)6.9 
Net Realized Investment Gains (Losses)1.1 1.5 6.6 19.7 (30.3)(14.4)6.4 9.2 (38.3)
Impairment Losses(2.2)(0.1)(1.5)(1.2)(1.1)(0.9)2.1 (3.8)0.1 
Total Revenues1,178.9 1,129.9 1,143.0 1,187.2 1,199.4 1,262.8 1,294.8 3,451.8 3,757.0 
Expenses:
Policyholders’ Benefits and Incurred Losses and Loss Adjustment Expenses769.3 744.4 756.0 808.1 975.2 984.7 1,052.0 2,269.7 3,011.9 
Insurance Expenses254.3 244.3 240.7 258.0 259.0 266.1 269.3 739.3 794.4 
Interest and Other Expenses64.6 49.3 59.7 57.6 156.0 78.3 77.4 173.6 311.7 
Goodwill Impairment— — — — — 49.6 — — 49.6 
Total Expenses1,088.2 1,038.0 1,056.4 1,123.7 1,390.2 1,378.7 1,398.7 3,182.6 4,167.6 
Income (Loss) before Income Taxes90.7 91.9 86.6 63.5 (190.8)(115.9)(103.9)269.2 (410.6)
Income Tax (Expense) Benefit(18.5)(17.5)(16.4)(12.2)44.4 18.8 23.8 (52.4)87.0 
Net Income (Loss)72.2 74.4 70.2 51.3 (146.4)(97.1)(80.1)216.8 (323.6)
Less: Net Loss attributable to Noncontrolling Interest(1.5)(1.0)(1.1)(0.1)(0.1)— — (3.6)(0.1)
Net Income (Loss) attributable to Kemper Corporation
$73.7 $75.4 $71.3 $51.4 $(146.3)$(97.1)$(80.1)$220.4 $(323.5)
Net Income (Loss) attributable to Kemper Corporation per Unrestricted Share:
Basic$1.15 $1.17 $1.11 $0.80 $(2.28)$(1.52)$(1.25)$3.43 $(5.05)
Diluted$1.14 $1.16 $1.10 $0.80 $(2.28)$(1.52)$(1.25)$3.40 $(5.05)
Dividends Paid to Shareholders Per Share$0.31 $0.31 $0.31 $0.31 $0.31 $0.31 $0.31 $0.93 $0.93 
Weighted Average Unrestricted Common Shares Outstanding (in Millions)64.217 64.395 64.255 64.088 64.057 64.009 63.947 64.288 64.004 
Weighted-Average Unrestricted Shares and Equivalent Shares Outstanding Assuming Dilution (in Millions)64.898 64.892 64.773 64.566 64.057 64.009 63.947 64.864 64.004 
 
5

Kemper Corporation
Consolidated Balance Sheets
(Dollars in Millions)
 (Unaudited)
Sep 30, 2024Jun 30, 2024Mar 31, 2024Dec 31, 2023Sep 30, 2023Jun 30, 2023Mar 31, 2023
Assets:
Investments:
Fixed Maturities at Fair Value$6,872.0 $6,674.7 $6,771.6 $6,881.9 $6,474.5 $6,943.8 $7,189.4 
Equity Securities at Fair Value228.3 226.6 230.1 225.8 233.4 247.0 243.6 
Equity Method Limited Liability Investments202.6 205.1 215.2 221.7 224.1 225.1 218.7 
Alternative Energy Partnerships17.4 17.3 17.2 17.3 17.2 16.8 17.0 
Short-term Investments at Cost which Approximates Fair Value696.9 539.1 520.7 520.9 418.5 406.3 278.4 
Company-Owned Life Insurance
533.0 523.3 515.7 513.5 506.9 500.5 595.3 
Loans to Policyholders
280.3 279.8 280.5 281.2 281.8 281.6 283.1 
Other Investments206.5 202.4 213.6 241.9 273.1 275.6 271.8 
Total Investments9,037.0 8,668.3 8,764.6 8,904.2 8,429.5 8,896.7 9,097.3 
Cash56.9 107.4 125.9 64.1 110.0 73.6 60.6 
Receivables from Policyholders982.8 988.0 953.1 959.5 1,102.6 1,246.3 1,344.0 
Other Receivables202.1 191.5 195.4 200.5 223.4 262.0 249.4 
Deferred Policy Acquisition Costs621.3 608.0 595.3 591.6 622.2 646.2 651.5 
Goodwill1,250.7 1,250.7 1,250.7 1,250.7 1,250.7 1,250.7 1,300.3 
Current Income Tax Assets68.8 56.5 52.6 64.5 59.5 9.0 15.0 
Deferred Income Tax Assets150.5 185.0 199.1 210.4 258.5 208.0 166.0 
Other Assets468.9 476.4 479.1 492.6 488.7 503.8 519.6 
Assets of Consolidated Variable Interest Entity:
Fixed Maturities at Fair Value1.7 1.6 1.7 1.7 1.6 — — 
Short-term Investments at Cost which Approximates Fair Value24.0 4.8 4.0 2.0 — — — 
Cash— — 0.8 — 2.4 — — 
Receivables from Policyholders6.6 5.2 2.7 0.7 0.1 — — 
Deferred Policy Acquisition Costs0.7 0.3 0.6 0.1 — — — 
Deferred Income Tax Assets1.0 0.6 — — — — — 
Other Assets— — 0.3 0.1 0.1 — — 
Total Assets$12,873.0 $12,544.3 $12,625.9 $12,742.7 $12,549.3 $13,096.3 $13,403.7 
6

Kemper Corporation
Consolidated Balance Sheets
(Dollars in Millions)
 (Unaudited)
Sep 30, 2024Jun 30, 2024Mar 31, 2024Dec 31, 2023Sep 30, 2023Jun 30, 2023Mar 31, 2023
Liabilities and Shareholders’ Equity:
Insurance Reserves:
Life and Health$3,425.8 $3,202.0 $3,294.3 $3,422.4 $3,098.1 $3,363.8 $3,399.6 
Property and Casualty2,586.9 2,567.2 2,597.2 2,680.5 2,724.5 2,680.1 2,721.1 
Total Insurance Reserves6,012.7 5,769.2 5,891.5 6,102.9 5,822.6 6,043.9 6,120.7 
Unearned Premiums1,290.3 1,301.5 1,274.1 1,300.8 1,485.1 1,665.2 1,778.0 
Policyholder Obligations618.3 644.4 660.9 655.7 656.3 700.2 700.6 
Deferred Income Tax Liabilities67.1 68.3 61.7 50.6 57.8 — — 
Accrued Expenses and Other Liabilities709.5 693.8 754.8 737.7 777.6 786.7 770.0 
Long-term Debt, Current, at Amortized Cost449.9 449.8 449.7 — — — — 
Long-term Debt, Non-Current, at Amortized Cost941.0 940.6 940.1 1,389.2 1,388.6 1,388.1 1,387.5 
Liabilities of Consolidated Variable Interest Entity:
Insurance Reserves5.3 2.4 0.7 — — — — 
Unearned Premiums8.1 4.9 3.1 0.5 0.1 — — 
Accrued Expenses and Other Liabilities0.4 0.1 0.6 0.3 — — — 
Total Liabilities10,102.6 9,875.0 10,037.2 10,237.7 10,188.1 10,584.1 10,756.8 
Kemper Corporation Shareholders’ Equity:
Common Stock6.4 6.4 6.4 6.4 6.4 6.4 6.4 
Paid-in Capital1,858.0 1,860.9 1,852.3 1,845.3 1,845.9 1,837.6 1,828.9 
Retained Earnings1,161.4 1,121.2 1,066.1 1,014.3 982.4 1,149.0 1,266.3 
Accumulated Other Comprehensive Loss(252.5)(317.3)(335.0)(360.8)(473.4)(480.8)(454.7)
Total Kemper Corporation Shareholders’ Equity2,773.3 2,671.2 2,589.8 2,505.2 2,361.3 2,512.2 2,646.9 
Noncontrolling Interest(2.9)(1.9)(1.1)(0.2)(0.1)— — 
Total Shareholders’ Equity$2,770.4 $2,669.3 $2,588.7 $2,505.0 $2,361.2 $2,512.2 $2,646.9 
Total Liabilities and Shareholders’ Equity$12,873.0 $12,544.3 $12,625.9 $12,742.7 $12,549.3 $13,096.3 $13,403.7 

7

Kemper Corporation
Consolidated Statements of Cash Flows
(Dollars in Millions)
 (Unaudited)
 Nine Months Ended
 Sep 30,
2024		Sep 30,
2023
Cash Flows from Operating Activities:
Net Income (Loss)
$216.8 $(323.6)
Adjustments to Reconcile Net Income (Loss) to Net Cash Provided by (Used in) Operating Activities
Net Realized Investment (Gains) Losses(9.2)38.3 
Impairment Losses3.8 (0.1)
Depreciation and Amortization of Property, Equipment and Software33.3 39.1 
Amortization of Intangible Assets Acquired7.5 11.0 
Settlement Related to Defined Benefit Pension Plan(2.6)70.2 
Change in Accumulated Undistributed Earnings of Equity Method Limited Liability Investments24.7 (2.9)
Change in Value of Alternative Energy Partnership Investments(1.5)(2.3)
Change in Value of Equity and Convertible Securities0.1 (6.9)
Goodwill Impairment— 49.6 
Changes in:
Receivables from Policyholders(28.4)184.0 
Reinsurance Recoverables4.6 11.6 
Deferred Policy Acquisition Costs(30.3)13.4 
Insurance Reserves(43.1)7.9 
Unearned Premiums(2.9)(219.3)
Income Taxes42.5 27.5 
Other Assets and Liabilities(7.5)(2.0)
Net Cash Provided by (Used in) Operating Activities207.8 (104.5)
Cash Flows from Investing Activities:
Proceeds from the Sales, Calls and Maturities of Fixed Maturities929.2 529.8 
Proceeds from the Sales or Paydowns of Investments:
Equity Securities15.8 73.9 
Mortgage Loans96.5 68.9 
Other Investments10.9 11.2 
Purchases of Investments:
Fixed Maturities(792.2)(362.7)
Equity Securities(12.1)(40.1)
Real Estate Investments(0.9)(0.8)
Mortgage Loans(87.8)(76.6)
Other Investments(40.7)(15.9)
Net Purchases of Short-term Investments(184.1)(136.5)
Acquisition of Software and Long-lived Assets(43.5)(39.1)
Settlement Proceeds from Company-Owned Life Insurance6.2 102.2 
Other13.1 (9.1)
Net Cash (Used in) Provided by Investing Activities(89.6)105.2 
8

Kemper Corporation
Consolidated Statements of Cash Flows
(Dollars in Millions)
 (Unaudited)
 Nine Months Ended
 Sep 30,
2024		Sep 30,
2023
Net Cash (Used in) Provided by Investing Activities (Carryforward from page 8)
$(89.6)$105.2 
Cash Flows from Financing Activities:
Proceeds from Policyholder Contract Obligations62.8 123.3 
Repayment of Policyholder Contract Obligations(100.6)(168.4)
Proceeds from Shares Issued under Employee Stock Purchase Plan2.9 3.3 
Common Stock Repurchases(25.0)— 
Dividends Paid(60.1)(59.8)
Other(5.4)0.9 
Net Cash Used in Financing Activities(125.4)(100.7)
Net increase (decrease) in cash1
(7.2)(100.0)
Cash, Beginning of Year1
64.1 212.4 
Cash, End of Period1
$56.9 $112.4 
1Includes amounts attributable to Kemper Reciprocal reported as non-controlling interest.
9

Kemper Corporation
Capital Metrics
(Dollars and Shares in Millions, Except Per Share Amounts)
(Unaudited)
 Sep 30, 2024Jun 30, 2024Mar 31, 2024Dec 31, 2023Sep 30, 2023Jun 30, 2023Mar 31, 2023
Book Value Per Share   
Book Value Per Share$43.30 $41.46 $40.24 $39.08 $36.85 $39.22 $41.37 
Adjusted Book Value Per Share1
$27.88 $27.14 $26.19 $25.39 $24.94 $26.66 $27.61 
Debt and Total Capitalization
Debt$1,390.9 $1,390.4 $1,389.8 $1,389.2 $1,388.6 $1,388.1 $1,387.5 
Kemper Corporation Shareholders’ Equity2,773.3 2,671.2 2,589.8 2,505.2 2,361.3 2,512.2 2,646.9 
Total Capitalization$4,164.2 $4,061.6 $3,979.6 $3,894.4 $3,749.9 $3,900.3 $4,034.4 
Ratio of Debt to Kemper Corporation Shareholders’ Equity50.2 %52.1 %53.7 %55.5 %58.8 %55.3 %52.4 %
Ratio of Debt to Total Capitalization33.4 %34.2 %34.9 %35.7 %37.0 %35.6 %34.4 %
Debt$1,390.9 $1,390.4 $1,389.8 $1,389.2 $1,388.6 $1,388.1 $1,387.5 
Kemper Corporation Shareholders’ Equity$2,773.3 $2,671.2 $2,589.8 $2,505.2 $2,361.3 $2,512.2 $2,646.9 
Less: Accumulated Other Comprehensive Loss
(252.5)(317.3)(335.0)(360.8)(473.4)(480.8)(454.7)
Kemper Corporation Shareholders’ Equity Excluding Accumulated Other Comprehensive Loss
$3,025.8 $2,988.5 $2,924.8 $2,866.0 $2,834.7 $2,993.0 $3,101.6 
Total Capitalization Excluding Accumulated Other Comprehensive Loss
$4,416.7 $4,378.9 $4,314.6 $4,255.2 $4,223.3 $4,381.1 $4,489.1 
Ratio of Debt to Kemper Corporation Shareholders’ Equity Excluding Accumulated Other Comprehensive Loss
46.0 %46.5 %47.5 %48.5 %49.0 %46.4 %44.7 %
Ratio of Debt to Total Capitalization Excluding Accumulated Other Comprehensive Loss
31.5 %31.8 %32.2 %32.6 %32.9 %31.7 %30.9 %
Parent Company Liquidity2
Kemper Holding Company Cash and Investments3
$503.7 $376.5 $395.6 $464.5 $153.9 $220.3 $240.6 
Borrowings Available Under Credit Agreement477.0 458.0 424.0 393.0 376.0 460.0 520.0 
Parent Company Liquidity$980.7 $834.5 $819.6 $857.5 $529.9 $680.3 $760.6 
Capital Returned to Shareholders
Cash Dividends Paid4
$20.3 $20.3 $19.5 $20.2 $20.2 $20.2 $19.4 
1Non-GAAP Financial Measure. See pages 29-32 for definition.
2Excludes borrowings available from subsidiaries
3Includes Kemper's direct non-insurance subsidiaries
4Three Months Ended
 
10

Kemper Corporation
Debt Outstanding, Federal Home Loan Bank Advances and Ratings
(Dollars in Millions)
(Unaudited)
Sep 30, 2024Jun 30, 2024Mar 31, 2024Dec 31, 2023Sep 30, 2023Jun 30, 2023Mar 31, 2023
Kemper Corporation:
Senior Notes at Amortized Cost:
Current:
4.350% Senior Notes due February 15, 2025$449.9 $449.8 $449.7 $— $— $— $— 
Non-Current:
4.350% Senior Notes due February 15, 2025$— $— $— $449.6 $449.6 $449.5 $449.4 
2.400% Senior Notes due September 30, 2030397.4 397.3 397.1 397.0 396.9 396.8 396.7 
3.800% Senior Notes due 2032396.3 396.2 396.1 396.0 395.8 395.7 395.6 
5.875% Fixed-Rate Reset Junior Subordinated Debentures Due 2062 at Amortized Cost147.3 147.1 146.9 146.6 146.3 146.1 145.8 
Long-term Debt Outstanding$1,390.9 $1,390.4 $1,389.8 $1,389.2 $1,388.6 $1,388.1 $1,387.5 
Federal Home Loan Bank Advances to Insurance Subsidiaries:
Reported as Policyholder Contract Liabilities:
Federal Home Loan Bank of Chicago$521.3 $547.0 $563.2 $557.4 $557.4 $601.0 $601.0 
 A.M. BestMoody’sS&PFitch
As of Date of Financial Supplement
Kemper Debt Ratings:
Senior Unsecured Debtbbb-Baa3BBB-BBB-
Junior Unsecured DebtbbBa1BBBB
Insurance Company Financial Strength Ratings:
Trinity Universal Insurance CompanyA-A3A-A-
United Insurance Company of AmericaA-A3A-A-





11

Kemper Corporation
Segment Revenues
(Dollars in Millions)
(Unaudited)
 Three Months EndedNine Months Ended
 Sep 30, 2024Jun 30, 2024Mar 31, 2024Dec 31, 2023Sep 30, 2023Jun 30, 2023Mar 31, 2023Sep 30,
2024		Sep 30,
2023
Revenues:   
Specialty Property & Casualty Insurance:
Earned Premiums:
Personal Automobile$731.3 $691.5 $675.3 $699.3 $724.0 $766.6 $787.9 $2,098.1 $2,278.5 
Commercial Automobile187.7 171.1 164.7 166.3 166.4 165.7 156.3 523.5 488.4 
Total Specialty Property & Casualty Insurance Earned Premiums919.0 862.6 840.0 865.6 890.4 932.3 944.2 2,621.6 2,766.9 
Net Investment Income52.0 46.6 41.1 42.6 42.7 44.5 38.5 139.7 125.7 
Change in Value of Alternative Energy Partnership Investments0.2 0.3 0.3 0.3 0.5 0.4 0.4 0.8 1.3 
Other Income1.4 1.3 1.1 1.3 1.6 0.7 0.9 3.8 3.2 
Total Specialty Property & Casualty Insurance Revenues972.6 910.8 882.5 909.8 935.2 977.9 984.0 2,765.9 2,897.1 
Life Insurance:
Earned Premium100.6 100.8 97.3 84.0 102.1 102.2 99.3 298.7 303.6 
Net Investment Income50.3 30.5 44.3 47.1 49.4 47.1 49.8 125.1 146.3 
Change in Value of Alternative Energy Partnership Investments0.2 0.1 0.1 0.1 0.2 0.2 0.2 0.4 0.6 
Other Income (Loss)— 0.1 0.2 0.2 (0.1)0.1 (0.4)0.3 (0.4)
Total Life Insurance Revenues151.1 131.5 141.9 131.4 151.6 149.6 148.9 424.5 450.1 
Total Segment Revenues1,123.7 1,042.3 1,024.4 1,041.2 1,086.8 1,127.5 1,132.9 3,190.4 3,347.2 
Change in Fair Value of Equity and Convertible Securities(2.3)(1.2)3.4 (2.2)2.8 2.4 1.7 (0.1)6.9 
Net Realized Investment Gains (Losses)1.1 1.5 6.6 19.7 (30.3)(14.4)6.4 9.2 (38.3)
Impairment Losses(2.2)(0.1)(1.5)(1.2)(1.1)(0.9)2.1 (3.8)0.1 
Non-Core Operations
54.8 83.8 106.2 126.7 138.0 145.7 148.0 244.8 431.7 
Other3.8 3.6 3.9 3.0 3.2 2.5 3.7 11.3 9.4 
Total Revenues$1,178.9 $1,129.9 $1,143.0 $1,187.2 $1,199.4 $1,262.8 $1,294.8 $3,451.8 $3,757.0 

12

Kemper Corporation
Segment Adjusted Operating Results
(Dollars in Millions)
(Unaudited)
 Three Months EndedNine Months Ended
 Sep 30, 2024Jun 30, 2024Mar 31, 2024Dec 31, 2023Sep 30, 2023Jun 30, 2023Mar 31, 2023Sep 30,
2024		Sep 30,
2023
Segment Adjusted Operating Income (Loss):
  
Specialty Property & Casualty Insurance$129.8 $127.9 $86.5 $56.6 $(43.2)$(15.0)$(74.7)$344.2 $(132.9)
Life Insurance18.0 (1.4)14.0 19.9 17.5 10.1 14.8 30.6 42.4 
Total Segment Adjusted Operating Income (Loss)
147.8 126.5 100.5 76.5 (25.7)(4.9)(59.9)374.8 (90.5)
Corporate and Other Adjusted Operating Loss(17.2)(13.7)(15.6)(13.7)(13.3)(15.3)(12.9)(46.5)(41.5)
Less: Loss before Income Taxes attributable to Noncontrolling Interest(1.8)(1.3)(1.4)(0.2)(0.1)— — (4.5)(0.1)
Adjusted Consolidated Operating Income (Loss)132.4 114.1 86.3 63.0 (38.9)(20.2)(72.8)332.8 (131.9)
(Loss) Income From:
Change in Fair Value of Equity and Convertible Securities(2.3)(1.2)3.4 (2.2)2.8 2.4 1.7 (0.1)6.9 
Net Realized Investment Gains (Losses)1.1 1.5 6.6 19.7 (30.3)(14.4)6.4 9.2 (38.3)
Impairment Losses(2.2)(0.1)(1.5)(1.2)(1.1)(0.9)2.1 (3.8)0.1 
Acquisition and Disposition Related Transaction, Integration, Restructuring and Other Costs(11.5)(6.5)(12.8)(18.3)(43.4)(29.5)(29.1)(30.8)(102.0)
Debt Extinguishment, Pension Settlement and Other Charges
(2.8)2.7 — — (70.2)— — (0.1)(70.2)
Goodwill Impairment Charge— — — — — (49.6)— — (49.6)
Non-Core Operations
(22.2)(17.3)6.0 2.7 (9.6)(3.7)(12.2)(33.5)(25.5)
Income (Loss) before Income Taxes attributable to Kemper Corporation
$92.5 $93.2 $88.0 $63.7 $(190.7)$(115.9)$(103.9)$273.7 $(410.5)
Segment Adjusted Net Operating Income (Loss):
Specialty Property & Casualty Insurance$103.6 $102.3 $69.2 $45.3 $(33.2)$(10.8)$(58.4)$275.1 $(102.4)
Life Insurance15.0 (0.2)11.9 15.0 14.7 8.9 13.2 26.7 36.8 
Total Segment Adjusted Net Operating Income (Loss)118.6 102.1 81.1 60.3 (18.5)(1.9)(45.2)301.8 (65.6)
Corporate and Other Adjusted Net Operating Loss(15.1)(11.4)(12.5)(9.9)(9.4)(12.3)(10.5)(39.0)(32.2)
Less: Net Loss attributable to Noncontrolling Interest(1.5)(1.0)(1.1)(0.1)(0.1)— — (3.6)(0.1)
Adjusted Consolidated Net Operating Income (Loss)1
105.0 91.7 69.7 50.5 (27.8)(14.2)(55.7)266.4 (97.7)
Net (Loss) Income From:
Change in Fair Value of Equity and Convertible Securities(1.8)(1.0)2.7 (1.8)2.3 1.9 1.3 (0.1)5.5 
Net Realized Investment Gains (Losses)0.9 1.2 5.2 15.6 (22.9)(12.5)5.1 7.3 (30.3)
Impairment Losses(1.7)(0.1)(1.2)(1.0)(0.8)(0.8)1.7 (3.0)0.1 
Acquisition and Disposition Related Transaction, Integration, Restructuring and Other Costs(9.1)(5.1)(10.1)(14.4)(34.3)(23.3)(23.0)(24.3)(80.6)
Debt Extinguishment, Pension Settlement and Other Charges
(2.2)2.1 — — (55.5)— — (0.1)(55.5)
Goodwill Impairment Charge— — — — — (45.5)— — (45.5)
Non-Core Operations
(17.4)(13.4)5.0 2.5 (7.3)(2.7)(9.5)(25.8)(19.5)
Net Income (Loss) attributable to Kemper Corporation
$73.7 $75.4 $71.3 $51.4 $(146.3)$(97.1)$(80.1)$220.4 $(323.5)
1Non-GAAP Financial Measure. See pages 29-32 for definition.
            
13

Kemper Corporation
Catastrophe Frequency and Severity
(Dollars in Millions)
(Unaudited)
Three Months Ended September 30, 2024
Specialty Property & Casualty Insurance SegmentLife Insurance SegmentNon-Core OperationsConsolidated
Number of EventsLosses and LAENumber of EventsLosses and LAENumber of EventsLosses and LAENumber of EventsLosses and LAE
Range of Losses and LAE Per Event1:
Below $515 $3.6 15 $1.2 15 $10.8 19 $15.6 
$5 - $10— — — — — — — — 
$10 - $15— — — — — — — — 
$15 - $20— — — — — — — — 
$20 - $25— — — — — — — — 
Greater Than $25— — — — — — — — 
Total15 $3.6 15 $1.2 15 $10.8 19 $15.6 
Three Months Ended September 30, 2023
Specialty Property & Casualty Insurance SegmentLife Insurance SegmentNon-Core OperationsConsolidated
Number of EventsLosses and LAENumber of EventsLosses and LAENumber of EventsLosses and LAENumber of EventsLosses and LAE
Range of Losses and LAE Per Event1:
Below $518 $6.2 12 $0.5 20 $14.1 22 $20.8 
$5 - $10— — — — — — — — 
$10 - $15— — — — — — — — 
$15 - $20— — — — — — — — 
$20 - $25— — — — — — — — 
Greater Than $25— — — — — — — — 
Total18 $6.2 12 $0.5 20 $14.1 22 $20.8 
1Current accident year net incurred catastrophe Losses and LAE only.













14


Kemper Corporation
Catastrophe Frequency and Severity (continued)
(Dollars in Millions)
(Unaudited)
Nine Months Ended September 30, 2024
Specialty Property & Casualty Insurance SegmentLife Insurance SegmentNon-Core OperationsConsolidated
Number of EventsLosses and LAENumber of EventsLosses and LAENumber of EventsLosses and LAENumber of EventsLosses and LAE
Range of Losses and LAE Per Event1:
Below $557 $18.0 51 $1.8 57 $40.1 65 $59.9 
$5 - $10— — — — — — — — 
$10 - $15— — — — — — — — 
$15 - $20— — — — — — — — 
$20 - $25— — — — — — — — 
Greater Than $25— — — — — — — — 
Total57 $18.0 51 $1.8 57 $40.1 65 $59.9 
Nine Months Ended September 30, 2023
Specialty Property & Casualty Insurance SegmentLife Insurance SegmentNon-Core OperationsConsolidated
Number of EventsLosses and LAENumber of EventsLosses and LAENumber of EventsLosses and LAENumber of EventsLosses and LAE
Range of Losses and LAE Per Event1:
Below $556 $26.6 41 $1.9 61 $52.3 61 $74.6 
$5 - $101 5.4 — — — — 2 11.6 
$10 - $15— — — — — — — — 
$15 - $20— — — — — — — — 
$20 - $25— — — — — — — — 
Greater Than $25— — — — — — — — 
Total57 $32.0 41 $1.9 61 $52.3 63 $86.2 
1Current accident year net incurred catastrophe Losses and LAE only.





15

Kemper Corporation
Specialty Property & Casualty Insurance Segment
Results of Operations and Selected Financial Information
(Dollars in Millions)
(Unaudited)
 Three Months EndedNine Months Ended
 Sep 30, 2024Jun 30, 2024Mar 31, 2024Dec 31, 2023Sep 30, 2023Jun 30, 2023Mar 31, 2023Sep 30,
2024		Sep 30,
2023
Results of Operations    
Net Premiums Written$938.0 $933.9 $864.6 $719.7 $733.0 $830.6 $1,022.1 $2,736.5 $2,585.7 
Total Specialty P&C:
Personal Automobile$731.3 $691.5 $675.3 $699.3 $724.0 $766.6 $787.9 2,098.1 2,278.5 
Commercial Automobile187.7 171.1 164.7 166.3 166.4 165.7 156.3 523.5 488.4 
Earned Premiums919.0 862.6 840.0 865.6 890.4 932.3 944.2 $2,621.6 $2,766.9 
Net Investment Income52.0 46.6 41.1 42.6 42.7 44.5 38.5 139.7 125.7 
Change in Value of Alternative Energy Partnership Investments0.2 0.3 0.3 0.3 0.5 0.4 0.4 0.8 1.3 
Other Income1.4 1.3 1.1 1.3 1.6 0.7 0.9 3.8 3.2 
Total Revenues972.6 910.8 882.5 909.8 935.2 977.9 984.0 2,765.9 2,897.1 
Incurred Losses and LAE related to:
Current Year:
Non-catastrophe Losses and LAE644.2 592.8 609.0 673.1 712.1 763.9 825.4 1,846.0 2,301.4 
Catastrophe Losses and LAE3.6 10.3 4.1 2.5 6.2 17.4 8.4 18.0 32.0 
Prior Years:
Non-catastrophe Losses and LAE(0.1)(0.8)5.3 (0.2)78.8 25.0 31.6 4.4 135.4 
Catastrophe Losses and LAE0.2 (0.1)0.7 0.1 (1.0)(0.9)(0.5)0.8 (2.4)
Total Incurred Losses and LAE647.9 602.2 619.1 675.5 796.1 805.4 864.9 1,869.2 2,466.4 
Insurance Expenses194.9 180.7 176.9 177.7 182.3 187.5 193.8 552.5 563.6 
Segment Adjusted Operating Income (Loss)129.8 127.9 86.5 56.6 (43.2)(15.0)(74.7)344.2 (132.9)
Income Tax (Expense) Benefit(26.2)(25.6)(17.3)(11.3)10.0 4.2 16.3 (69.1)30.5 
Total Segment Adjusted Net Operating Income (Loss)$103.6 $102.3 $69.2 $45.3 $(33.2)$(10.8)$(58.4)$275.1 $(102.4)
Ratios Based On Earned Premiums
Current Year Non-catastrophe Losses and LAE Ratio70.1 %68.7 %72.5 %77.7 %80.0 %81.9 %87.5 %70.4 %83.1 %
Current Year Catastrophe Losses and LAE Ratio0.4 1.2 0.5 0.3 0.7 1.9 0.9 0.7 1.2 
Prior Years Non-catastrophe Losses and LAE Ratio— (0.1)0.6 — 8.8 2.7 3.3 0.2 4.9 
Prior Years Catastrophe Losses and LAE Ratio— — 0.1 — (0.1)(0.1)(0.1)— (0.1)
Total Incurred Loss and LAE Ratio70.5 69.8 73.7 78.0 89.4 86.4 91.6 71.3 89.1 
Insurance Expense Ratio21.2 20.9 21.1 20.5 20.5 20.1 20.5 21.1 20.4 
Combined Ratio91.7 %90.7 %94.8 %98.5 %109.9 %106.5 %112.1 %92.4 %109.5 %
Underlying Combined Ratio1
Current Year Non-catastrophe Losses and LAE Ratio70.1 %68.7 %72.5 %77.7 %80.0 %81.9 %87.5 %70.4 %83.1 %
Insurance Expense Ratio21.2 20.9 21.1 20.5 20.5 20.1 20.5 21.1 20.4 
Underlying Combined Ratio91.3 %89.6 %93.6 %98.2 %100.5 %102.0 %108.0 %91.5 %103.5 %
Non-GAAP Measure Reconciliation
Combined Ratio as Reported91.7 %90.7 %94.8 %98.5 %109.9 %106.5 %112.1 %92.4 %109.5 %
Less:
Current Year Catastrophe Losses and LAE Ratio0.4 1.2 0.5 0.3 0.7 1.9 0.9 0.7 1.2 
Prior Years Non-catastrophe Losses and LAE Ratio— (0.1)0.6 — 8.8 2.7 3.3 0.2 4.9 
Prior Years Catastrophe Losses and LAE Ratio— — 0.1 — (0.1)(0.1)(0.1)— (0.1)
Underlying Combined Ratio91.3 %89.6 %93.6 %98.2 %100.5 %102.0 %108.0 %91.5 %103.5 %
1Underlying Combined Ratio is a non-GAAP measure, which is computed as the difference between three operating ratios: the combined ratio, the effect of catastrophes (excluding development of prior-year catastrophes) on the combined ratio and the effect of prior-year reserve development at the reporting date (including development on prior-year catastrophes) on the combined ratio.
16

Kemper Corporation
Specialty Property & Casualty Insurance Segment
Results of Operations and Selected Financial Information (continued)
(Dollars in Millions)
(Unaudited)
Sep 30, 2024Jun 30, 2024Mar 31, 2024Dec 31, 2023Sep 30, 2023Jun 30, 2023Mar 31, 2023
Insurance Reserves:
Non-Standard Automobile$1,605.3 $1,597.1 $1,633.1 $1,711.9 $1,761.6 $1,741.4 $1,805.6 
Commercial Automobile677.5 640.5 618.1 596.8 570.3 530.8 491.4 
Insurance Reserves$2,282.8 $2,237.6 $2,251.2 $2,308.7 $2,331.9 $2,272.2 $2,297.0 
Insurance Reserves:
Loss and Allocated LAE Reserves:
Case and Allocated LAE$932.5 $952.8 $965.7 $999.9 $1,048.0 $1,061.7 $1,094.8 
Incurred but Not Reported1,177.5 1,113.1 1,114.8 1,132.8 1,107.7 1,036.7 1,027.0 
Total Loss Reserves2,110.0 2,065.9 2,080.5 2,132.7 2,155.7 2,098.4 2,121.8 
Unallocated LAE Reserves172.8 171.7 170.7 176.0 176.2 173.8 175.2 
Insurance Reserves$2,282.8 $2,237.6 $2,251.2 $2,308.7 $2,331.9 $2,272.2 $2,297.0 
17

Kemper Corporation
Specialty Property & Casualty Insurance Segment
Personal Automobile Insurance - Results of Operations and Selected Financial Information
(Dollars in Millions)
(Unaudited)
 Three Months EndedNine Months Ended
 Sep 30, 2024Jun 30, 2024Mar 31, 2024Dec 31, 2023Sep 30, 2023Jun 30, 2023Mar 31, 2023Sep 30,
2024		Sep 30,
2023
Results of Operations   
Net Premiums Written$735.1 $739.5 $672.5 $563.8 $583.9 $687.4 $842.4 $2,147.1 $2,113.7 
Earned Premiums$731.3 $691.5 $675.3 $699.3 $724.0 $766.6 $787.9 $2,098.1 $2,278.5 
Net Investment Income33.0 30.3 26.9 32.3 32.5 33.8 29.9 90.2 96.2 
Change in Value of Alternative Energy Partnership Investments0.1 0.2 0.2 0.2 0.4 0.3 0.3 0.5 1.0 
Other Income1.4 1.3 1.1 1.3 1.6 0.7 0.9 3.8 3.2 
Total Revenues765.8 723.3 703.5 733.1 758.5 801.4 819.0 2,192.6 2,378.9 
Incurred Losses and LAE related to:
Current Year:
Non-catastrophe Losses and LAE507.8 471.6 485.7 544.2 583.5 638.7 697.6 1,465.1 1,919.8 
Catastrophe Losses and LAE2.1 7.9 3.5 1.9 5.0 15.0 7.7 13.5 27.7 
Prior Years:
Non-catastrophe Losses and LAE(2.7)0.6 6.5 (2.2)71.8 18.0 23.4 4.4 113.2 
Catastrophe Losses and LAE0.1 — 0.6 — (0.9)(0.9)(0.5)0.7 (2.3)
Total Incurred Losses and LAE507.3 480.1 496.3 543.9 659.4 670.8 728.2 1,483.7 2,058.4 
Insurance Expenses158.8 148.0 145.6 151.4 155.3 157.1 162.0 452.4 474.4 
Adjusted Operating Income (Loss)99.7 95.2 61.6 37.8 (56.2)(26.5)(71.2)256.5 (153.9)
Income Tax (Expense) Benefit(20.2)(19.3)(12.3)(7.5)12.4 6.3 15.5 (51.8)34.2 
Total Product Line Adjusted Net Operating Income (Loss)$79.5 $75.9 $49.3 $30.3 $(43.8)$(20.2)$(55.7)$204.7 $(119.7)
Ratios Based On Earned Premiums
Current Year Non-catastrophe Losses and LAE Ratio69.5 %68.2 %71.9 %77.8 %80.6 %83.3 %88.5 %69.9 %84.2 %
Current Year Catastrophe Losses and LAE Ratio0.3 1.1 0.5 0.3 0.7 2.0 1.0 0.6 1.2 
Prior Years Non-catastrophe Losses and LAE Ratio(0.4)0.1 1.0 (0.3)9.9 2.3 3.0 0.2 5.0 
Prior Years Catastrophe Losses and LAE Ratio— — 0.1 — (0.1)(0.1)(0.1)— (0.1)
Total Incurred Loss and LAE Ratio69.4 69.4 73.5 77.8 91.1 87.5 92.4 70.7 90.3 
Insurance Expense Ratio21.7 21.4 21.6 21.7 21.5 20.5 20.6 21.6 20.8 
Combined Ratio91.1 %90.8 %95.1 %99.5 %112.6 %108.0 %113.0 %92.3 %111.1 %
Underlying Combined Ratio1
Current Year Non-catastrophe Losses and LAE Ratio69.5 %68.2 %71.9 %77.8 %80.6 %83.3 %88.5 %69.9 %84.2 %
Insurance Expense Ratio21.7 21.4 21.6 21.7 21.5 20.5 20.6 21.6 20.8 
Underlying Combined Ratio91.2 %89.6 %93.5 %99.5 %102.1 %103.8 %109.1 %91.5 %105.0 %
Non-GAAP Measure Reconciliation
Combined Ratio91.1 %90.8 %95.1 %99.5 %112.6 %108.0 %113.0 %92.3 %111.1 %
Less:
Current Year Catastrophe Losses and LAE Ratio0.3 1.1 0.5 0.3 0.7 2.0 1.0 0.6 1.2 
Prior Years Non-catastrophe Losses and LAE Ratio(0.4)0.1 1.0 (0.3)9.9 2.3 3.0 0.2 5.0 
Prior Years Catastrophe Losses and LAE Ratio— — 0.1 — (0.1)(0.1)(0.1)— (0.1)
Underlying Combined Ratio91.2 %89.6 %93.5 %99.5 %102.1 %103.8 %109.1 %91.5 %105.0 %
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.
18

Kemper Corporation
Specialty Property & Casualty Insurance Segment
Commercial Automobile Insurance - Results of Operations and Selected Financial Information
(Dollars in Millions)
(Unaudited)
 Three Months EndedNine Months Ended
 Sep 30, 2024Jun 30, 2024Mar 31, 2024Dec 31, 2023Sep 30, 2023Jun 30, 2023Mar 31, 2023Sep 30,
2024		Sep 30,
2023
Results of Operations   
Net Premiums Written$202.9 $194.4 $192.1 $155.9 $149.1 $143.2 $179.7 $589.4 $472.0 
Earned Premiums$187.7 $171.1 $164.7 $166.3 $166.4 $165.7 $156.3 $523.5 $488.4 
Net Investment Income19.0 16.3 14.2 10.3 10.2 10.7 8.6 49.5 29.5 
Change in Value of Alternative Energy Partnership Investments0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.3 0.3 
Total Revenues206.8 187.5 179.0 176.7 176.7 176.5 165.0 573.3 518.2 
Incurred Losses and LAE related to:
Current Year:
Non-catastrophe Losses and LAE136.4 121.2 123.3 128.9 128.6 125.2 127.8 380.9 381.6 
Catastrophe Losses and LAE1.5 2.4 0.6 0.6 1.2 2.4 0.7 4.5 4.3 
Prior Years:
Non-catastrophe Losses and LAE2.6 (1.4)(1.2)2.0 7.0 7.0 8.2 — 22.2 
Catastrophe Losses and LAE0.1 (0.1)0.1 0.1 (0.1)— — 0.1 (0.1)
Total Incurred Losses and LAE140.6 122.1 122.8 131.6 136.7 134.6 136.7 385.5 408.0 
Insurance Expenses36.1 32.7 31.3 26.3 27.0 30.4 31.8 100.1 89.2 
Adjusted Operating Income (Loss)30.1 32.7 24.9 18.8 13.0 11.5 (3.5)87.7 21.0 
Income Tax (Expense) Benefit(6.0)(6.3)(5.0)(3.8)(2.4)(2.1)0.8 (17.3)(3.7)
Total Product Line Adjusted Net Operating Income (Loss)$24.1 $26.4 $19.9 $15.0 $10.6 $9.4 $(2.7)$70.4 $17.3 
Ratios Based On Earned Premiums
Current Year Non-catastrophe Losses and LAE Ratio72.6 %70.9 %74.8 %77.4 %77.4 %75.6 %81.9 %72.7 %78.1 %
Current Year Catastrophe Losses and LAE Ratio0.8 1.4 0.4 0.4 0.7 1.4 0.4 0.9 0.9 
Prior Years Non-catastrophe Losses and LAE Ratio1.4 (0.8)(0.7)1.2 4.2 4.2 5.2 — 4.5 
Prior Years Catastrophe Losses and LAE Ratio0.1 (0.1)0.1 0.1 (0.1)— — — — 
Total Incurred Loss and LAE Ratio74.9 71.4 74.6 79.1 82.2 81.2 87.5 73.6 83.5 
Insurance Expense Ratio19.2 19.1 19.0 15.8 16.2 18.3 20.3 19.1 18.3 
Combined Ratio94.1 %90.5 %93.6 %94.9 %98.4 %99.5 %107.8 %92.7 %101.8 %
Underlying Combined Ratio1
Current Year Non-catastrophe Losses and LAE Ratio72.6 %70.9 %74.8 %77.4 %77.4 %75.6 %81.9 %72.7 %78.1 %
Insurance Expense Ratio19.2 19.1 19.0 15.8 16.2 18.3 20.3 19.1 18.3 
Underlying Combined Ratio91.8 %90.0 %93.8 %93.2 %93.6 %93.9 %102.2 %91.8 %96.4 %
Non-GAAP Measure Reconciliation
Combined Ratio94.1 %90.5 %93.6 %94.9 %98.4 %99.5 %107.8 %92.7 %101.8 %
Less:
Current Year Catastrophe Losses and LAE Ratio0.8 1.4 0.4 0.4 0.7 1.4 0.4 0.9 0.9 
Prior Years Non-catastrophe Losses and LAE Ratio1.4 (0.8)(0.7)1.2 4.2 4.2 5.2 — 4.5 
Prior Years Catastrophe Losses and LAE Ratio0.1 (0.1)0.1 0.1 (0.1)— — — — 
Underlying Combined Ratio91.8 %90.0 %93.8 %93.2 %93.6 %93.9 %102.2 %91.8 %96.4 %
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.
    
19

Kemper Corporation
Life Insurance Segment
Results of Operations and Selected Financial Information
(Dollars in Millions)
(Unaudited)
 Three Months EndedNine Months Ended
 Sep 30, 2024Jun 30, 2024Mar 31, 2024Dec 31, 2023Sep 30, 2023Jun 30, 2023Mar 31, 2023Sep 30,
2024		Sep 30,
2023
Results of Operations  
Earned Premiums$100.6 $100.8 $97.3 $84.0 $102.1 $102.2 $99.3 $298.7 $303.6 
Net Investment Income50.3 30.5 44.3 47.1 49.4 47.1 49.8 125.1 146.3 
Change in Value of Alternative Energy Partnership Investments0.2 0.1 0.1 0.1 0.2 0.2 0.2 0.4 0.6 
Other Income (Loss)— 0.1 0.2 0.2 (0.1)0.1 (0.4)0.3 (0.4)
Total Revenues151.1 131.5 141.9 131.4 151.6 149.6 148.9 424.5 450.1 
Policyholders’ Benefits and Incurred Losses and LAE64.1 63.9 63.0 40.5 64.7 68.3 69.9 191.0 202.9 
Insurance Expenses69.0 69.0 64.9 71.0 69.4 71.2 64.2 202.9 204.8 
Segment Adjusted Operating Income (Loss)18.0 (1.4)14.0 19.9 17.5 10.1 14.8 30.6 42.4 
Income Tax (Expense) Benefit(3.0)1.2 (2.1)(4.9)(2.8)(1.2)(1.6)(3.9)(5.6)
Total Segment Adjusted Net Operating Income (Loss)$15.0 $(0.2)$11.9 $15.0 $14.7 $8.9 $13.2 $26.7 $36.8 
    

20

Kemper Corporation
Life Insurance Segment
Results of Operations and Selected Financial Information (continued)
(Dollars in Millions)
(Unaudited)

Sep 30, 2024Jun 30, 2024Mar 31, 2024Dec 31,
2023		Sep 30, 2023Jun 30, 2023Mar 31, 2023
Insurance Reserves:
Future Policyholder Benefits$3,380.8 $3,155.3 $3,248.8 $3,375.6 $3,048.7 $3,315.2 $3,346.9 
Incurred Losses and LAE Reserves:
Life40.4 42.1 40.7 42.1 44.6 44.2 48.3 
Accident and Health4.6 4.6 4.7 4.7 4.8 4.4 4.4 
Property3.0 2.6 2.5 2.9 2.7 2.6 2.7 
Total Incurred Losses and LAE Reserves48.0 49.3 47.9 49.7 52.1 51.2 55.4 
Insurance Reserves$3,428.8 $3,204.6 $3,296.7 $3,425.3 $3,100.8 $3,366.4 $3,402.3 


21

Kemper Corporation
Expenses
(Dollars in Millions)
(Unaudited)
 Three Months EndedNine Months Ended
 Sep 30, 2024Jun 30, 2024Mar 31, 2024Dec 31, 2023Sep 30, 2023Jun 30, 2023Mar 31, 2023Sep 30,
2024		Sep 30,
2023
Insurance Expenses: 
Commissions$153.2 $152.0 $139.9 $121.2 $130.8 $165.3 $166.9 $445.1 $463.0 
General Expenses92.3 84.6 85.3 88.2 85.9 74.5 94.2 262.2 254.6 
Premium Taxes21.9 19.6 19.1 17.7 17.8 20.5 23.6 60.6 61.9 
Total Costs Incurred267.4 256.2 244.3 227.1 234.5 260.3 284.7 767.9 779.5 
Net Policy Acquisition Costs (Deferred) Amortized(13.7)(12.5)(4.1)30.4 24.0 5.3 (15.9)(30.3)13.4 
Amortization of Valuation of Business Acquired ("VOBA")0.6 0.6 0.5 0.5 0.5 0.5 0.5 1.7 1.5 
Insurance Expenses$254.3 $244.3 $240.7 $258.0 $259.0 $266.1 $269.3 $739.3 $794.4 
Interest and Other Expenses:
Interest Expense$14.4 $13.9 $14.0 $13.9 $14.1 $14.0 $14.1 $42.3 $42.2 
Other Expenses:
Acquisition and Disposition Related Transaction, Integration, Restructuring and Other Costs11.5 6.5 12.8 18.4 43.3 29.5 29.1 30.8 101.9 
Pension Settlement0.1 (2.7)— — 70.2 — — (2.6)70.2 
Other38.6 31.6 32.9 25.3 28.4 34.8 34.2 103.1 97.4 
Other Expenses50.2 35.4 45.7 43.7 141.9 64.3 63.3 131.3 269.5 
Interest and Other Expenses64.6 49.3 59.7 57.6 156.0 78.3 77.4 173.6 311.7 
Goodwill Impairment— — — — — 49.6 — — 49.6 
Total Expenses$318.9 $293.6 $300.4 $315.6 $415.0 $394.0 $346.7 $912.9 $1,155.7 

22

Kemper Corporation
Details of Investment Performance
(Dollars in Millions)
(Unaudited)
 
Three Months Ended
Nine Months Ended
 Sep 30, 2024Jun 30, 2024Mar 31, 2024Dec 31, 2023Sep 30, 2023Jun 30, 2023Mar 31, 2023Sep 30,
2024		Sep 30,
2023
Net Investment Income  
Interest on Fixed Income Securities1,2
$79.0 $80.2 $79.8 $81.0 $81.2 $79.6 $81.5 $239.0 $242.3 
Dividends on Equity Securities Excluding Alternative Investments0.9 0.9 2.8 1.0 1.2 1.2 1.0 4.6 3.4 
Alternative Investments:
Equity Method Limited Liability Investments0.9 (14.7)(2.1)2.3 4.3 2.8 1.1 (15.9)8.2 
Limited Liability Investments Included in Equity Securities9.1 6.2 3.4 4.7 5.4 6.3 2.6 18.7 14.3 
Total Alternative Investments10.0 (8.5)1.3 7.0 9.7 9.1 3.7 2.8 22.5 
Short-term Investments8.4 7.3 7.3 6.1 6.0 3.6 2.3 23.0 11.9 
Loans to Policyholders5.5 5.1 5.2 5.3 5.1 5.1 5.4 15.8 15.6 
Real Estate2.2 2.2 2.3 2.3 2.3 1.9 2.4 6.7 6.6 
Company-Owned Life Insurance
9.7 8.9 7.1 6.6 6.4 7.4 8.8 25.7 22.6 
Other2.2 2.6 2.5 2.8 1.8 5.3 3.0 7.3 10.1 
Total Investment Income117.9 98.7 108.3 112.1 113.7 113.2 108.1 324.9 335.0 
Investment Expenses:
Real Estate1.8 2.1 2.2 2.8 1.7 2.2 2.1 6.1 6.0 
Other Investment Expenses1,2
5.0 3.6 5.7 4.7 5.0 4.7 4.2 14.3 13.9 
Total Investment Expenses6.8 5.7 7.9 7.5 6.7 6.9 6.3 20.4 19.9 
Net Investment Income$111.1 $93.0 $100.4 $104.6 $107.0 $106.3 $101.8 $304.5 $315.1 
Net Realized Investment Gains (Losses)
Fixed Maturities:
Gains on Sales$0.9 $2.2 $12.8 $3.6 $0.8 $0.4 $1.1 $15.9 $2.3 
Losses on Sales— (0.3)(2.3)(0.4)(1.2)(6.0)(3.3)(2.6)(10.5)
Gains (Losses) on Hedging Activity— — (7.9)17.8 (29.4)(8.7)8.4 (7.9)(29.7)
Equity Securities:
Gains on Sales— — 4.1 — 0.5 0.1 — 4.1 0.6 
Losses on Sales— — (0.1)(1.3)(1.1)(0.1)— (0.1)(1.2)
Other Investments:
Gains on Sales1.8 1.5 — — — — 0.2 3.3 0.2 
Losses on Sales(1.6)(1.9)— — 0.1 (0.1)— (3.5)— 
Net Realized Investment Gains (Losses)$1.1 $1.5 $6.6 $19.7 $(30.3)$(14.4)$6.4 $9.2 $(38.3)
Net Impairment Losses Recognized in Earnings
Fixed Maturities$(2.0)$0.2 $(1.0)$(0.7)$(2.0)$— $2.1 $(2.8)$0.1 
Equity Securities— — (0.4)(0.5)— — — (0.4)— 
Real Estate(0.2)(0.1)— — — — — (0.3)— 
Other— (0.2)(0.1)— — — — (0.3)— 
Net Impairment Losses Recognized in Earnings$(2.2)$(0.1)$(1.5)$(1.2)$(2.0)$— $2.1 $(3.8)$0.1 
1In the first quarter of 2024, the Company changed its presentation of the details of investment performance to report interest expense incurred on Federal Home Loan Bank ("FHLB") borrowings as an offset to interest on fixed income securities since FHLB borrowings are used for spread lending purposes. The interest expense incurred on FHLB borrowings was previously reported within Other Investment Expenses. The prior period amounts presented above have been updated to reflect this change in presentation.
2Reduced by interest expense incurred on FHLB borrowings used for spread lending purposes of $4.8 million, $5.4 million, $5.2 million, $5.2 million, $5.3 million, $7.5 million, $4.7 million, for the three months ended September 30, 2024, June 30, 2024, March 31, 2024, December 31, 2023, September 30, 2023, June 30, 2023 and March 31, 2023, respectively.
 
23

Kemper Corporation
Details of Invested Assets
(Dollars in Millions)
(Unaudited)
 Sep 30, 2024Dec 31, 2023Dec 31, 2022
 Carrying
Value		Percent
of Total		Carrying
Value		Percent
of Total		Carrying
Value		Percent
of Total
Fixed Maturities Reported at Fair Value:
U.S. Government and Government Agencies and Authorities$521.9 5.8 %$511.5 5.7 %$528.0 6.0 %
States and Political Subdivisions1,373.7 15.2 1,401.9 15.7 1,568.9 17.8 
Foreign Governments 5.1 0.1 3.8 — 4.1 — 
Corporate Securities:
Bonds and Notes3,753.3 41.5 3,690.8 41.4 3,539.4 40.4 
Redeemable Preferred Stocks10.3 0.1 8.3 0.1 8.0 0.1 
Collateralized Loan Obligations796.5 8.8 949.8 10.7 953.9 10.9 
Other Mortgage- and Asset-backed411.2 4.6 315.8 3.5 292.5 3.3 
Total Fixed Maturities Reported at Fair Value6,872.0 76.1 6,881.9 77.1 6,894.8 78.5 
Equity Securities Reported at Fair Value:
Preferred Stocks25.7 0.3 25.5 0.3 39.8 0.5 
Common Stocks2.4 — 1.2 — 2.1 — 
Other Equity Interests:
Exchange Traded Funds11.0 0.1 7.7 0.1 12.2 0.1 
Limited Liability Companies and Limited Partnerships189.2 2.1 191.4 2.1 189.1 2.2 
Total Equity Securities Reported at Fair Value228.3 2.5 225.8 2.5 243.2 2.8 
Equity Method Limited Liability Investments202.6 2.2 221.7 2.5 217.0 2.5 
Alternative Energy Partnership Investments17.4 0.2 17.3 0.2 16.3 0.2 
Short-term Investments at Cost which Approximates Fair Value696.9 7.7 520.9 5.9 278.4 3.2 
Company Owned Life Insurance533.0 5.9 513.5 5.8 586.5 6.7 
Loans to Policyholders280.3 3.1 281.2 3.2 283.4 3.2 
Other Investments:
Equity Securities Reported at Modified Cost22.1 0.3 32.6 0.4 38.4 0.4 
Convertible Securities at Fair Value— — — — 43.3 0.5 
Real Estate at Depreciated Cost103.1 1.1 94.7 1.1 93.6 1.1 
Mortgage Loans80.9 0.9 99.8 1.1 91.1 1.0 
Other0.4 — 14.8 0.2 3.5 — 
Total Other Investments206.5 2.3 241.9 2.8 269.9 3.0 
Total Investments$9,037.0 100.0 %$8,904.2 100.0 %$8,789.5 100.0 %
24

Kemper Corporation
Details of Invested Assets (continued)
(Dollars in Millions)
(Unaudited)
 Sep 30, 2024Dec 31, 2023Dec 31, 2022
 Carrying
Value		Percent
of Total		Carrying
Value		Percent
of Total		Carrying
Value		Percent
of Total
S&P Equivalent Rating for Fixed Maturities
      
AAA, AA, A
$4,937.0 71.8 %$4,962.0 72.1 %$4,896.4 71.0 %
BBB
1,622.5 23.6 1,657.3 24.1 1,687.4 24.5 
BB, B
257.2 3.8 204.4 3.0 239.7 3.5 
CCC or Lower
55.3 0.8 58.2 0.8 71.3 1.0 
Total Investments in Fixed Maturities
$6,872.0 100.0 %$6,881.9 100.0 %$6,894.8 100.0 %
Duration (in Years)
Total Investments in Fixed Maturities
8.0 8.1 8.2 

25

Kemper Corporation
Investment Concentration
(Dollars in Millions)
(Unaudited)
 Sep 30, 2024Dec 31, 2023Dec 31, 2022
Fair Value of Non-governmental Fixed Maturities by IndustryAmountPercent
of Total
Investments		AmountPercent
of Total
Investments		AmountPercent
of Total
Investments
Finance, Insurance and Real Estate$2,048.8 22.7 %$2,070.5 23.3 %$2,007.5 22.8 %
Manufacturing1,080.9 12.0 1,077.6 12.1 1,085.9 12.4 
Transportation, Communication and Utilities852.4 9.4 807.3 9.1 733.7 8.3 
Services634.0 7.0 639.4 7.2 602.4 6.9 
Mining160.5 1.8 174.3 2.0 173.3 2.0 
Retail Trade137.8 1.5 156.0 1.8 165.1 1.9 
Construction21.6 0.2 4.4 — 11.7 0.1 
Other35.3 0.4 35.2 0.4 14.2 0.2 
Total Fair Value of Non-governmental Fixed Maturities$4,971.3 55.0 %$4,964.7 55.9 %$4,793.8 54.6 %
 
Sep 30, 2024
Ten Largest Investment Exposures1
Fair
Value		Percent
of Total
Investments
Fixed Maturities:
States including their Political Subdivisions:
California $142.6 1.6 %
Texas114.6 1.3 
Michigan88.7 1.0 
New York73.6 0.8 
Georgia72.0 0.8 
Pennsylvania59.6 0.7 
Florida57.1 0.6 
Louisiana51.5 0.6 
Colorado46.2 0.5 
Missouri40.1 0.4 
Total$746.0 8.3 %
1Excluding Investments in U.S. Government and Government Agencies and Authorities at September 30, 2024.


 

26

Kemper Corporation
Municipal Bond Securities
(Dollars in Millions)
(Unaudited)
 Sep 30, 2024
State
General
Obligation		Political
Subdivision
General
Obligation		RevenueTotal Fair
Value		Percent
of Total
Muni Bond		Percent
of Total
Investments
California$8.9 $133.7 $— $142.6 10.4 %1.6 %
Texas10.7 100.3 3.6 114.6 8.3 1.3 
Michigan— 78.3 10.4 88.7 6.5 1.0 
New York12.6 61.0 — 73.6 5.4 0.8 
Georgia2.8 64.7 4.5 72.0 5.2 0.8 
Louisiana4.3 25.4 21.8 51.5 3.8 0.6 
Pennsylvania3.2 56.4 — 59.6 4.3 0.7 
Florida— 57.1 — 57.1 4.2 0.6 
Colorado— 46.2 — 46.2 3.4 0.5 
Missouri1.1 39.0 — 40.1 2.9 0.4 
Virginia— 32.0 6.2 38.2 2.8 0.4 
New Mexico— 33.4 — 33.4 2.4 0.4 
Ohio— 33.4 — 33.4 2.4 0.4 
Illinois0.6 31.5 — 32.1 2.3 0.4 
Oregon2.5 18.4 11.6 32.5 2.4 0.4 
Massachusetts— 25.0 5.3 30.3 2.2 0.3 
Minnesota1.1 26.9 — 28.0 2.0 0.3 
Maryland— 27.2 — 27.2 2.0 0.3 
Tennessee3.2 20.4 — 23.6 1.7 0.3 
Oklahoma— 23.8 — 23.8 1.7 0.3 
Washington1.4 19.3 2.6 23.3 1.7 0.3 
Rhode Island1.6 17.3 — 18.9 1.4 0.2 
North Carolina1.7 17.7 — 19.4 1.4 0.2 
Connecticut— 16.9 2.6 19.5 1.4 0.2 
New Hampshire0.4 18.4 — 18.8 1.4 0.2 
District of Columbia— 16.1 2.7 18.8 1.4 0.2 
Mississippi— 10.9 7.7 18.6 1.4 0.2 
Indiana— 18.1 — 18.1 1.3 0.2 
Arizona— 14.9 — 14.9 1.1 0.2 
South Carolina— 14.2 — 14.2 1.0 0.2 
Kentucky— 13.9 — 13.9 1.0 0.2 
North Dakota— 13.2 — 13.2 1.0 0.1 
Alabama— 13.0 — 13.0 0.9 0.1 
Utah— 12.2 — 12.2 0.9 0.1 
Iowa— 12.0 — 12.0 0.9 0.1 
New Jersey— 10.6 — 10.6 0.8 0.1 
Nebraska— 9.6 — 9.6 0.7 0.1 
Montana— 9.5 — 9.5 0.7 0.1 
Hawaii3.5 2.9 2.7 9.1 0.7 0.1 
All Other States2.5 32.7 2.4 37.6 2.6 0.4 
Total$62.1 $1,227.5 $84.1 $1,373.7 100.0 %15.3 %
27

Kemper Corporation
Investments in Limited Liability
Companies and Limited Partnerships
(Dollars in Millions)
(Unaudited)
 Unfunded
Commitment		Reported Value
Asset ClassSep 30,
2024		Sep 30,
2024		Dec 31,
2023
Reported as Equity Method Limited Liability Investments:
Mezzanine Debt$38.6 $127.9 $125.4 
Senior Debt36.1 20.2 19.0 
Secondary Transactions1.6 6.0 7.9 
Leveraged Buyout0.6 7.9 8.6 
Real Estate— 27.1 41.9 
Distressed Debt— 5.0 7.9 
Growth Equity— 0.5 1.2 
Hedge Fund— 0.1 0.1 
Other0.1 7.9 9.7 
Total Equity Method Limited Liability Investments77.0 202.6 221.7 
Alternative Energy Partnership Investments— 17.4 17.3 
Reported as Other Equity Interests at Fair Value:
Mezzanine Debt63.4 122.6 124.0 
Distressed Debt15.0 10.9 12.4 
Leveraged Buyout12.9 20.2 19.0 
Growth Equity8.2 6.9 6.4 
Senior Debt6.5 26.0 24.8 
Secondary Transactions1.6 2.5 2.8 
Hedge Funds— — 1.9 
Other0.2 0.1 0.1 
Total Reported as Other Equity Interests at Fair Value107.8 189.2 191.4 
Reported as Other Equity Interests at Modified Cost:
Other— 1.8 4.8 
Total Reported as Other Equity Interests at Modified Cost— 1.8 4.8 
Total Investments in Limited Liability Companies and Limited Partnerships$184.8 $411.0 $435.2 

28

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.

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

(i) 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 Settlement and Other Charges;
(vi) Goodwill Impairment Charges;
(vii) Non-Core Operations; and
(viii) 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) attributable to Kemper Corporation. There were no applicable significant non-recurring items that the Company excluded from the calculation of Adjusted Consolidated Net Operating Income (Loss) for the three and nine months ended September 30, 2024 or 2023.

The Company believes that Adjusted Consolidated Net Operating Income (Loss) provides investors with a valuable measure of its ongoing performance because it reveals underlying operational performance trends that otherwise might be less apparent if the items were not excluded. 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 Settlement 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. Goodwill Impairment Charges are excluded because they are infrequent and non-recurring charges. Non-Core Operations includes the results of our Preferred Insurance business which we expect to fully exit. These results are excluded because they are irrelevant to our ongoing operations and do not qualify for Discontinued Operations under Generally Accepted Accounting Principles ("GAAP"). 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 profitability of the Company’s businesses.























29

Kemper Corporation
Definitions of Non-GAAP Financial Measures (continued)


A reconciliation of Net Income (Loss) attributable to Kemper Corporation to Adjusted Consolidated Net Operating Income (Loss) is presented below:

 Three Months EndedNine Months Ended
Dollars in Millions (Unaudited)Sep 30, 2024Jun 30, 2024Mar 31, 2024Dec 31, 2023Sep 30, 2023Jun 30, 2023Mar 31, 2023Sep 30,
2024		Sep 30,
2023
Net Income (Loss) attributable to Kemper Corporation$73.7 $75.4 $71.3 $51.4 $(146.3)$(97.1)$(80.1)$220.4 $(323.5)
Less Net (Loss) Income From:
Change in Fair Value of Equity and Convertible Securities(1.8)(1.0)2.7 (1.8)2.3 1.9 1.3 (0.1)5.5 
Net Realized Investment Gains (Losses)0.9 1.2 5.2 15.6 (22.9)(12.5)5.1 7.3 (30.3)
Impairment Losses(1.7)(0.1)(1.2)(1.0)(0.8)(0.8)1.7 (3.0)0.1 
Acquisition and Disposition Related Transaction, Integration, Restructuring and Other Costs(9.1)(5.1)(10.1)(14.4)(34.3)(23.3)(23.0)(24.3)(80.6)
Debt Extinguishment, Pension Settlement and Other Charges(2.2)2.1 — — (55.5)— — (0.1)(55.5)
Goodwill Impairment Charge— — — — — (45.5)— — (45.5)
Non-Core Operations(17.4)(13.4)5.0 2.5 (7.3)(2.7)(9.5)(25.8)(19.5)
Adjusted Consolidated Net Operating Income (Loss)$105.0 $91.7 $69.7 $50.5 $(27.8)$(14.2)$(55.7)$266.4 $(97.7)

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

 Three Months EndedNine Months Ended
Dollars in Millions (Unaudited)Sep 30, 2024Jun 30, 2024Mar 31, 2024Dec 31, 2023Sep 30, 2023Jun 30, 2023Mar 31, 2023Sep 30,
2024		Sep 30,
2023
Net Income (Loss) attributable to Kemper Corporation per Unrestricted Share
$1.15 $1.17 $1.11 $0.80 $(2.28)$(1.52)$(1.25)$3.43 $(5.05)
Less Net (Loss) Income per Unrestricted Share From:
Change in Fair Value of Equity and Convertible Securities(0.02)(0.02)0.04 (0.03)0.04 0.03 0.02 — 0.09 
Net Realized Investment Gains (Losses)0.01 0.02 0.09 0.24 (0.35)(0.20)0.08 0.12 (0.47)
Impairment Losses(0.03)— (0.02)(0.01)(0.01)(0.02)0.03 (0.05)— 
Acquisition and Disposition Related Transaction, Integration, Restructuring and Other Costs(0.14)(0.08)(0.16)(0.23)(0.54)(0.36)(0.36)(0.38)(1.26)
Debt Extinguishment, Pension Settlement and Other Charges(0.03)0.03 — — (0.87)— — — (0.87)
Goodwill Impairment Charge— — — — — (0.71)— — (0.71)
Non-Core Operations(0.27)(0.21)0.08 0.04 (0.11)(0.04)(0.15)(0.40)(0.30)
Adjusted Consolidated Net Operating Income (Loss) per Unrestricted Share$1.63 $1.43 $1.08 $0.79 $(0.44)$(0.22)$(0.87)$4.14 $(1.53)






30

Kemper Corporation
Definitions of Non-GAAP Financial Measures (continued)


Return on Adjusted Shareholders' Equity is a calculation that uses a non-GAAP financial measure. It is calculated by dividing the period’s net income attributable to Kemper Corporation by the average shareholders’ equity excluding net unrealized gains and losses on fixed maturities, the change in discount rate on future life policyholder benefits and goodwill. Return on Shareholders' Equity is the most directly comparable GAAP measure. We use this non-GAAP measure to identify and analyze the change in performance attributable to management efforts between periods. The Company believes this 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. The “Return on Adjusted Shareholders’ Equity” metric was referred to as “Return on Tangible Shareholders’ Equity” in prior periods.

A reconciliation of Return on Shareholders’ Equity to Return on Adjusted Shareholders' Equity is presented below:

 Three Months EndedNine Months Ended
Dollars in Millions (Unaudited)Sep 30, 2024Jun 30, 2024Mar 31, 2024Dec 31, 2023Sep 30, 2023Jun 30, 2023Mar 31, 2023Sep 30,
2024		Sep 30,
2023
Numerator:
Annualized Net Income (Loss) attributable to Kemper Corporation$294.8 $301.6 $285.2 $205.6 $(585.2)$(388.4)$(320.4)$293.9 $(431.3)
Denominator:
Average Shareholders' Equity1
$2,722.3 $2,630.5 $2,547.5 $2,433.3 $2,436.8 $2,579.6 $2,658.8 $2,634.9 $2,547.8 
Less: Average Net Unrealized Gains and Losses on Fixed Maturities
570.8 652.2 576.1 716.9 770.3 607.3 645.5 573.5 707.9 
Less: Average Change in Discount Rate on Future Life Policyholder Benefits
(275.4)(315.1)(216.3)(286.7)(303.6)(174.3)(197.7)(245.9)(250.7)
Less: Average Goodwill
(1,250.7)(1,250.7)(1,250.7)(1,250.7)(1,250.7)(1,275.5)(1,300.3)(1,250.7)(1,275.5)
Average Adjusted Shareholders' Equity1
$1,767.0 $1,716.9 $1,656.6 $1,612.8 $1,652.8 $1,737.1 $1,806.3 $1,711.8 $1,729.5 
Return on Shareholders' Equity:
Return on Shareholders' Equity10.8 %11.5 %11.2 %8.4 %(24.0)%(15.1)%(12.1)%11.2 %(16.9)%
Return on Adjusted Shareholders' Equity16.7 %17.6 %17.2 %12.7 %(35.4)%(22.4)%(17.7)%17.2 %(24.9)%
1Average shareholders' equity and average adjusted shareholders’ equity for the three months ended is the simple average of the beginning and ending balances for the period. Average shareholders’ equity and average adjusted shareholders’ equity on a year-to-date basis is the (a) the sum of the balance at the beginning of the year and the ending balance for each quarter within that year divided by (b) the number of quarters in the period presented plus one.

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.






31

Kemper Corporation
Definitions of Non-GAAP Financial Measures (continued)


Adjusted Book Value Per Share 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 and 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 and 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. The “Adjusted Book Value Per Share” metric was referred to as “Tangible Book Value Per Share” in prior periods.

A reconciliation of Book Value Per Share to Adjusted Book Value Per Share is presented below:

 As of
Dollars and Shares in Millions Except Per Share Amounts (Unaudited)Sep 30, 2024Jun 30, 2024Mar 31, 2024Dec 31, 2023Sep 30, 2023Jun 30, 2023Mar 31, 2023
Numerator:
Kemper Corporation Shareholders’ Equity$2,773.3 $2,671.2 $2,589.8 $2,505.2 $2,361.3 $2,512.2 $2,646.9 
Less: Net Unrealized Gains and Losses on Fixed Maturities
455.8 685.9 618.4 533.8 900.1 640.5 574.2 
Less: Change in Discount Rate on Future Life Policyholder Benefits
(192.9)(358.0)(272.1)(160.6)(412.8)(194.4)(154.2)
Less: Goodwill
(1,250.7)(1,250.7)(1,250.7)(1,250.7)(1,250.7)(1,250.7)(1,300.3)
Adjusted Shareholders' Equity
$1,785.5 $1,748.4 $1,685.4 $1,627.7 $1,597.9 $1,707.6 $1,766.6 
Denominator:
Common Shares Issued and Outstanding64.04464.42764.35864.11264.08164.05463.982
Book Value Per Share:
Book Value Per Share
$43.30 $41.46 $40.24 $39.08 $36.85 $39.22 $41.37 
Less: Net Unrealized Gains and Losses on Fixed Maturities
7.12 10.65 9.61 8.33 14.05 10.00 8.97 
Less: Change in Discount Rate on Future Life Policyholder Benefits
(3.01)(5.56)(4.23)(2.51)(6.44)(3.03)(2.41)
Less: Goodwill
(19.53)(19.41)(19.43)(19.51)(19.52)(19.53)(20.32)
Adjusted Book Value Per Share
$27.88 $27.14 $26.19 $25.39 $24.94 $26.66 $27.61 
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