EX-99.2 3 kmpr202503312025ex992suppl.htm EX-99.2

Investor Supplement

First Quarter 2025

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 28-31.

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Kemper Corporation

Investor Supplement

First Quarter 2025

Table of Contents

 

			Page
Consolidated Financial Highlights			3-4
Consolidated Statements of Income			5
Consolidated Balance Sheets			6-7
Consolidated Statements of Cash Flows			8-9
Capital Metrics			10
Debt Outstanding, Federal Home Loan Bank Advances and Ratings			11
Adjusted Segment Summary Results:
Revenues			12
Adjusted Operating Income			13
Adjusted Net Operating Income			13
Catastrophe Frequency and Severity			14
Specialty Property & Casualty Insurance Segment - Results of Operations and Selected Financial Information			15-16
Personal Automobile Insurance			17
Commercial Automobile Insurance			18
Life Insurance Segment - Results of Operations and Selected Financial Information			19-20
Expenses			21
Details of Investment Performance			22
Details of Invested Assets			23-24
Investment Concentration			25
Municipal Bond Securities			26
Investments in Limited Liability Companies and Limited Partnerships			27
Definitions of Non-GAAP Financial Measures			28-31

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Kemper Corporation Consolidated Financial Highlights (Dollars in Millions, Except Per Share Amounts) (Unaudited)
																								Three Months Ended
																								Mar 31, 2025						Dec 31, 2024						Sep 30, 2024						Jun 30, 2024						Mar 31, 2024
For Period Ended
Earned Premiums																								$	1,087.9					$	1,081.8					$	1,068.5					$	1,033.7					$	1,031.9
Net Investment Income																								101.2						103.0						111.1						93.0						100.4
Other Income																								2.6						2.6						2.7						3.0						2.2
Change in Fair Value of Equity and Convertible Securities																								0.1						(2.6)						(2.3)						(1.2)						3.4
Net Realized Investment Gains																								1.2						2.0						(1.1)						1.4						5.1
Investment and Other Income																								105.1						105.0						110.4						96.2						111.1
Total Revenues																								$	1,193.0					$	1,186.8					$	1,178.9					$	1,129.9					$	1,143.0
Net Income																								$	97.0					$	95.7					$	72.2					$	74.4					$	70.2
Less: Net Loss attributable to Noncontrolling Interest																								(2.7)						(1.7)						(1.5)						(1.0)						(1.1)
Net Income attributable to Kemper Corporation																								$	99.7					$	97.4					$	73.7					$	75.4					$	71.3
Adjusted Consolidated Net Operating Income (Loss)1																								$	106.4					$	115.1					$	105.0					$	91.7					$	69.7
Per Unrestricted Common Share Amounts:
Basic:
Net Income attributable to Kemper Corporation per Unrestricted Share:																								$	1.56					$	1.52					$	1.15					$	1.17					$	1.11
Adjusted Consolidated Net Operating Income1																								$	1.67					$	1.81					$	1.63					$	1.43					$	1.08
Diluted:
Net Income attributable to Kemper Corporation per Unrestricted Share:																								$	1.54					$	1.51					$	1.14					$	1.16					$	1.10
Adjusted Consolidated Net Operating Income1																								$	1.65					$	1.78					$	1.62					$	1.42					$	1.07
Dividends Paid to Shareholders Per Share																								$	0.32					$	0.31					$	0.31					$	0.31					$	0.31
Return on Shareholders' Equity																								14.0		%				14.0		%				10.8		%				11.5		%				11.2		%
Return on Adjusted Shareholders' Equity1																								21.0		%				21.4		%				16.7		%				17.6		%				17.2		%

3

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Kemper Corporation Consolidated Financial Highlights (Dollars in Millions, Except Per Share Amounts) (Unaudited)
																								As of
																								Mar 31, 2025						Dec 31, 2024						Sep 30, 2024						Jun 30, 2024						Mar 31, 2024
At Period End
Total Assets																								$	12,467.3					$	12,630.4					$	12,873.0					$	12,544.3					$	12,625.9
Insurance Reserves																								$	5,867.1					$	5,811.6					$	6,012.7					$	5,769.2					$	5,891.5
Debt																								$	942.1					$	1,391.6					$	1,390.9					$	1,390.4					$	1,389.8
Kemper Corporation Shareholders’ Equity																								$	2,917.6					$	2,788.4					$	2,773.3					$	2,671.2					$	2,589.8
Book Value Per Share2																								$	45.60					$	43.68					$	43.30					$	41.46					$	40.24
Adjusted Book Value Per Share1,2																								$	30.31					$	29.04					$	27.88					$	27.14					$	26.19
Debt to Total Capitalization2																								24.4		%				33.3		%				33.4		%				34.2		%				34.9		%
1Non-GAAP Financial Measure. See pages 28-31 for definition.
2See Capital Metrics on page 10 for detail calculations.

4

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Kemper Corporation

Consolidated Statements of Income

(Dollars in Millions, Except Per Share Amounts)

(Unaudited)

																								Three Months Ended
																								Mar 31, 2025						Dec 31, 2024						Sep 30, 2024						Jun 30, 2024						Mar 31, 2024
Revenues:
Earned Premiums																								$	1,087.9					$	1,081.8					$	1,068.5					$	1,033.7					$	1,031.9
Net Investment Income																								101.2						103.0						111.1						93.0						100.4
Other Income																								2.6						2.6						2.7						3.0						2.2
Change in Fair Value of Equity and Convertible Securities																								0.1						(2.6)						(2.3)						(1.2)						3.4
Net Realized Investment Gains																								0.9						4.0						1.1						1.5						6.6
Impairment Losses																								0.3						(2.0)						(2.2)						(0.1)						(1.5)
Total Revenues																								1,193.0						1,186.8						1,178.9						1,129.9						1,143.0
Expenses:
Policyholders’ Benefits and Incurred Losses and Loss Adjustment Expenses																								767.3						743.4						769.3						744.4						756.0
Insurance and Other Expenses																								294.5						309.5						304.5						279.7						286.4
Interest Expense																								11.4						14.6						14.4						13.9						14.0
Total Expenses																								1,073.2						1,067.5						1,088.2						1,038.0						1,056.4
Income before Income Taxes																								119.8						119.3						90.7						91.9						86.6
Income Tax Expense																								22.8						23.6						18.5						17.5						16.4
Net Income																								97.0						95.7						72.2						74.4						70.2
Less: Net Loss attributable to Noncontrolling Interest																								(2.7)						(1.7)						(1.5)						(1.0)						(1.1)
Net Income attributable to Kemper Corporation																								$	99.7					$	97.4					$	73.7					$	75.4					$	71.3
Net Income attributable to Kemper Corporation per Unrestricted Share:
Basic																								$	1.56					$	1.52					$	1.15					$	1.17					$	1.11
Diluted																								$	1.54					$	1.51					$	1.14					$	1.16					$	1.10
Dividends Paid to Shareholders Per Share																								$	0.32					$	0.31					$	0.31					$	0.31					$	0.31
Weighted Average Unrestricted Common Shares Outstanding (in Millions)																								63.887						63.859						64.217						64.395						64.255
Weighted-Average Unrestricted Shares and Equivalent Shares Outstanding Assuming Dilution (in Millions)																								64.653						64.632						64.898						64.892						64.773

 

5

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Kemper Corporation Consolidated Balance Sheets (Dollars in Millions)  (Unaudited)
																								Mar 31, 2025						Dec 31, 2024						Sep 30, 2024						Jun 30, 2024						Mar 31, 2024
Assets:
Investments:
Fixed Maturities at Fair Value																								$	6,558.6					$	6,409.6					$	6,872.0					$	6,674.7					$	6,771.6
Equity Securities at Fair Value																								232.3						218.5						228.3						226.6						230.1
Equity Method Limited Liability Investments																								185.1						186.3						202.6						205.1						215.2
Short-term Investments at Cost which Approximates Fair Value																								545.3						1,037.1						696.9						539.1						520.7
Company-Owned Life Insurance																								546.5						539.2						533.0						523.3						515.7
Loans to Policyholders																								279.8						280.7						280.3						279.8						280.5
Other Investments																								244.5						217.1						223.9						219.7						230.8
Total Investments																								8,592.1						8,888.5						9,037.0						8,668.3						8,764.6
Cash																								115.4						64.4						56.9						107.4						125.9
Receivables from Policyholders																								1,052.7						977.9						982.8						988.0						953.1
Other Receivables																								189.2						185.7						202.1						191.5						195.4
Deferred Policy Acquisition Costs																								649.7						628.9						621.3						608.0						595.3
Goodwill																								1,250.7						1,250.7						1,250.7						1,250.7						1,250.7
Current Income Tax Assets																								40.9						63.4						68.8						56.5						52.6
Deferred Income Tax Assets																								73.4						93.3						150.5						185.0						199.1
Other Assets																								442.2						436.1						468.9						476.4						479.1
Assets of Consolidated Variable Interest Entity:
Fixed Maturities at Fair Value																								13.7						1.7						1.7						1.6						1.7
Short-term Investments at Cost which Approximates Fair Value																								31.6						28.0						24.0						4.8						4.0
Cash																								—						1.0						—						—						0.8
Receivables from Policyholders																								11.9						8.2						6.6						5.2						2.7
Other Receivables																								0.1						—						—						—						—
Deferred Policy Acquisition Costs																								1.5						1.1						0.7						0.3						0.6
Deferred Income Tax Assets																								2.2						1.5						1.0						0.6						—
Other Assets																								—						—						—						—						0.3
Total Assets																								$	12,467.3					$	12,630.4					$	12,873.0					$	12,544.3					$	12,625.9

6

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Kemper Corporation Consolidated Balance Sheets (Dollars in Millions)  (Unaudited)
																								Mar 31, 2025						Dec 31, 2024						Sep 30, 2024						Jun 30, 2024						Mar 31, 2024
Liabilities and Shareholders’ Equity:
Insurance Reserves:
Life and Health																								$	3,229.5					$	3,199.7					$	3,425.8					$	3,202.0					$	3,294.3
Property and Casualty																								2,637.6						2,611.9						2,586.9						2,567.2						2,597.2
Total Insurance Reserves																								5,867.1						5,811.6						6,012.7						5,769.2						5,891.5
Unearned Premiums																								1,361.6						1,264.1						1,290.3						1,301.5						1,274.1
Policyholder Obligations																								632.0						637.7						618.3						644.4						660.9
Deferred Income Tax Liabilities																								6.6						14.8						67.1						68.3						61.7
Accrued Expenses and Other Liabilities																								715.5						705.2						709.5						693.8						754.8
Long-term Debt, Current, at Amortized Cost																								—						449.9						449.9						449.8						449.7
Long-term Debt, Non-Current, at Amortized Cost																								942.1						941.7						941.0						940.6						940.1
Liabilities of Consolidated Variable Interest Entity:
Insurance Reserves																								14.7						9.4						5.3						2.4						0.7
Unearned Premiums																								14.5						11.2						8.1						4.9						3.1
Accrued Expenses and Other Liabilities																								1.7						0.5						0.4						0.1						0.6
Total Liabilities																								9,555.8						9,846.1						10,102.6						9,875.0						10,037.2
Kemper Corporation Shareholders’ Equity:
Common Stock																								6.4						6.4						6.4						6.4						6.4
Paid-in Capital																								1,863.6						1,854.9						1,858.0						1,860.9						1,852.3
Retained Earnings																								1,308.9						1,231.6						1,161.4						1,121.2						1,066.1
Accumulated Other Comprehensive Loss																								(261.3)						(304.5)						(252.5)						(317.3)						(335.0)
Total Kemper Corporation Shareholders’ Equity																								2,917.6						2,788.4						2,773.3						2,671.2						2,589.8
Noncontrolling Interest																								(6.1)						(4.1)						(2.9)						(1.9)						(1.1)
Total Shareholders’ Equity																								$	2,911.5					$	2,784.3					$	2,770.4					$	2,669.3					$	2,588.7
Total Liabilities and Shareholders’ Equity																								$	12,467.3					$	12,630.4					$	12,873.0					$	12,544.3					$	12,625.9

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Kemper Corporation Consolidated Statements of Cash Flows (Dollars in Millions)  (Unaudited)
			Three Months Ended
			Mar 31, 2025									Mar 31, 2024
Cash Flows from Operating Activities:
Net Income			$	97.0								$	70.2
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities
Net Realized Investment Gains			(0.9)									(6.6)
Impairment Losses			(0.3)									1.5
Depreciation and Amortization of Property, Equipment, Software and Intangible Assets Acquired			12.5									14.6
Change in Accumulated Undistributed Earnings of Equity Method Limited Liability Investments			0.6									6.0
Change in Value of Equity and Convertible Securities			(0.1)									(3.4)
Changes in:
Receivables from Policyholders			(78.5)									4.4
Reinsurance Recoverables			(0.9)									1.8
Deferred Policy Acquisition Costs			(21.2)									(4.2)
Insurance Reserves			43.1									(69.0)
Unearned Premiums			100.8									(24.1)
Income Taxes			22.7									26.9
Other			5.2									24.9
Net Cash Provided by Operating Activities			180.0									43.0

8

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Kemper Corporation Consolidated Statements of Cash Flows (Dollars in Millions)  (Unaudited)
			Three Months Ended
			Mar 31, 2025									Mar 31, 2024
Net Cash Provided by (Used in) Operating Activities (Carryforward from page 8)			180.0									43.0
Cash Flows from Investing Activities:
Proceeds from the Sales, Calls and Maturities of Fixed Maturities			215.1									323.2
Proceeds from the Sales or Paydowns of Investments:
Equity Securities			7.3									13.4
Mortgage Loans			24.1									34.1
Other Investments			5.9									3.5
Purchases of Investments:
Fixed Maturities			(302.5)									(286.9)
Equity Securities			(20.5)									(3.1)
Real Estate Investments			(1.1)									(0.2)
Mortgage Loans			(51.7)									(27.4)
Other Investments			(15.0)									(9.6)
Net Sales of Short-term Investments			493.6									2.4
Acquisition of Software and Long-lived Assets			(7.7)									(15.3)
Settlement Proceeds from Company-Owned Life Insurance			2.9									4.9
Other			0.7									0.3
Net Cash Provided by Investing Activities			351.1									39.3
Cash Flows from Financing Activities:
Repayment of Long-term Debt			(450.0)									—
Proceeds from Policyholder Contract Obligations			20.0									25.5
Repayment of Policyholder Contract Obligations			(25.9)									(20.6)
Proceeds from Shares Issued under Employee Stock Purchase Plan			0.8									0.9
Common Stock Repurchases			(4.0)									—
Dividends Paid			(20.2)									(19.5)
Other			(1.8)									(6.0)
Net Cash Used in Financing Activities			(481.1)									(19.7)
Net increase (decrease) in cash1			50.0									62.6
Cash, Beginning of Year1			65.4									64.1
Cash, End of Period1			$	115.4								$	126.7
1Includes amounts attributable to Kemper Reciprocal reported as non-controlling interest.

9

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Kemper Corporation Capital Metrics (Dollars and Shares in Millions, Except Per Share Amounts) (Unaudited)
																								Mar 31, 2025						Dec 31, 2024						Sep 30, 2024						Jun 30, 2024						Mar 31, 2024
Book Value Per Share
Book Value Per Share																								$	45.60					$	43.68					$	43.30					$	41.46					$	40.24
Adjusted Book Value Per Share1																								$	30.31					$	29.04					$	27.88					$	27.14					$	26.19
Debt and Total Capitalization
Debt																								$	942.1					$	1,391.6					$	1,390.9					$	1,390.4					$	1,389.8
Kemper Corporation Shareholders’ Equity																								2,917.6						2,788.4						2,773.3						2,671.2						2,589.8
Total Capitalization																								$	3,859.7					$	4,180.0					$	4,164.2					$	4,061.6					$	3,979.6
Ratio of Debt to Kemper Corporation Shareholders’ Equity																								32.3		%				49.9		%				50.2		%				52.1		%				53.7		%
Ratio of Debt to Total Capitalization																								24.4		%				33.3		%				33.4		%				34.2		%				34.9		%
Debt																								$	942.1					$	1,391.6					$	1,390.9					$	1,390.4					$	1,389.8
Kemper Corporation Shareholders’ Equity																								$	2,917.6					$	2,788.4					$	2,773.3					$	2,671.2					$	2,589.8
Less: Accumulated Other Comprehensive Loss																								(261.3)						(304.5)						(252.5)						(317.3)						(335.0)
Kemper Corporation Shareholders’ Equity Excluding Accumulated Other Comprehensive Loss																								$	3,178.9					$	3,092.9					$	3,025.8					$	2,988.5					$	2,924.8
Total Capitalization Excluding Accumulated Other Comprehensive Loss																								$	4,121.0					$	4,484.5					$	4,416.7					$	4,378.9					$	4,314.6
Ratio of Debt to Kemper Corporation Shareholders’ Equity Excluding Accumulated Other Comprehensive Loss																								29.6		%				45.0		%				46.0		%				46.5		%				47.5		%
Ratio of Debt to Total Capitalization Excluding Accumulated Other Comprehensive Loss																								22.9		%				31.0		%				31.5		%				31.8		%				32.2		%
Parent Company Liquidity2
Kemper Holding Company Cash and Investments3																								$	161.3					$	547.6					$	503.7					$	376.5					$	395.6
Borrowings Available Under Credit Agreement																								600.0						512.0						477.0						458.0						424.0
Parent Company Liquidity																								$	761.3					$	1,059.6					$	980.7					$	834.5					$	819.6
Capital Returned to Shareholders
Cash Dividends Paid4																								$	20.2					$	20.0					$	20.3					$	20.3					$	19.5
1Non-GAAP Financial Measure. See pages 28-31 for definition.
2Excludes borrowings available from subsidiaries
3Includes Kemper's direct non-insurance subsidiaries
4Three Months Ended

 

10

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Kemper Corporation

Debt Outstanding, Federal Home Loan Bank Advances and Ratings

(Dollars in Millions)

(Unaudited)

																								Mar 31, 2025						Dec 31, 2024						Sep 30, 2024						Jun 30, 2024						Mar 31, 2024
Kemper Corporation:
Senior Notes at Amortized Cost:
Current:
4.350% Senior Notes due February 15, 2025																								$	—					$	449.9					$	449.9					$	449.8					$	449.7
Non-Current:
2.400% Senior Notes due September 30, 2030																								397.6						397.5						397.4						397.3						397.1
3.800% Senior Notes due 2032																								396.6						396.5						396.3						396.2						396.1
5.875% Fixed-Rate Reset Junior Subordinated Debentures Due 2062 at Amortized Cost																								147.9						147.7						147.3						147.1						146.9
Long-term Debt Outstanding																								$	942.1					$	1,391.6					$	1,390.9					$	1,390.4					$	1,389.8
Federal Home Loan Bank Advances to Insurance Subsidiaries:
Reported as Policyholder Contract Liabilities:
Federal Home Loan Bank of Chicago																								$	536.2					$	541.3					$	521.3					$	547.0					$	563.2
																								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-

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Kemper Corporation

Segment Revenues

(Dollars in Millions)

(Unaudited)

																								Three Months Ended
																								Mar 31, 2025						Dec 31, 2024						Sep 30, 2024						Jun 30, 2024						Mar 31, 2024
Revenues:
Specialty Property & Casualty Insurance:
Earned Premiums:
Personal Automobile																								$	753.7					$	753.3					$	731.3					$	691.5					$	675.3
Commercial Automobile																								208.5						201.5						187.7						171.1						164.7
Total Specialty Property & Casualty Insurance Earned Premiums																								962.2						954.8						919.0						862.6						840.0
Net Investment Income																								50.5						49.9						52.0						46.6						41.1
Other Income																								1.3						1.5						1.6						1.6						1.4
Total Specialty Property & Casualty Insurance Revenues																								1,014.0						1,006.2						972.6						910.8						882.5
Life Insurance:
Earned Premium																								99.7						95.2						100.6						100.8						97.3
Net Investment Income																								48.4						45.5						50.3						30.5						44.3
Other Income																								0.7						0.4						0.2						0.2						0.3
Total Life Insurance Revenues																								148.8						141.1						151.1						131.5						141.9
Total Segment Revenues																								1,162.8						1,147.3						1,123.7						1,042.3						1,024.4
Change in Fair Value of Equity and Convertible Securities																								0.1						(2.6)						(2.3)						(1.2)						3.4
Net Realized Investment Gains																								0.9						4.0						1.1						1.5						6.6
Impairment Losses																								0.3						(2.0)						(2.2)						(0.1)						(1.5)
Non-Core Operations																								27.9						37.6						54.8						83.8						106.2
Other																								1.0						2.5						3.8						3.6						3.9
Total Revenues																								$	1,193.0					$	1,186.8					$	1,178.9					$	1,129.9					$	1,143.0

12

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Kemper Corporation

Segment Adjusted Operating Results

(Dollars in Millions)

(Unaudited)

																								Three Months Ended
																								Mar 31, 2025						Dec 31, 2024						Sep 30, 2024						Jun 30, 2024						Mar 31, 2024
Segment Adjusted Operating Income:
Specialty Property & Casualty Insurance																								$	122.1					$	126.7					$	129.8					$	127.9					$	86.5
Life Insurance																								20.2						28.4						18.0						(1.4)						14.0
Total Segment Adjusted Operating Income																								142.3						155.1						147.8						126.5						100.5
Corporate and Other Adjusted Operating Loss																								(14.1)						(15.2)						(17.2)						(13.7)						(15.6)
Less: Loss before Income Taxes attributable to Noncontrolling Interest																								(3.5)						(2.2)						(1.8)						(1.3)						(1.4)
Adjusted Consolidated Operating Income																								131.7						142.1						132.4						114.1						86.3
Income (Loss) From:
Change in Fair Value of Equity and Convertible Securities																								0.1						(2.6)						(2.3)						(1.2)						3.4
Net Realized Investment Gains																								0.9						4.0						1.1						1.5						6.6
Impairment Losses																								0.3						(2.0)						(2.2)						(0.1)						(1.5)
Acquisition and Disposition Related Transaction, Integration, Restructuring and Other Costs																								(5.3)						(9.5)						(11.5)						(6.5)						(12.8)
Debt Extinguishment, Pension Settlement and Other Charges																								0.5						(7.3)						(2.8)						2.7						—
Non-Core Operations																								(4.9)						(3.2)						(22.2)						(17.3)						6.0
Income before Income Taxes attributable to Kemper Corporation																								$	123.3					$	121.5					$	92.5					$	93.2					$	88.0
Segment Adjusted Net Operating Income (Loss):
Specialty Property & Casualty Insurance																								$	97.9					$	101.2					$	103.6					$	102.3					$	69.2
Life Insurance																								17.2						23.5						15.0						(0.2)						11.9
Total Segment Adjusted Net Operating Income																								115.1						124.7						118.6						102.1						81.1
Corporate and Other Adjusted Net Operating Loss																								(11.4)						(11.3)						(15.1)						(11.4)						(12.5)
Less: Net Loss attributable to Noncontrolling Interest																								(2.7)						(1.7)						(1.5)						(1.0)						(1.1)
Adjusted Consolidated Net Operating Income1																								106.4						115.1						105.0						91.7						69.7
Net Income (Loss) From:
Change in Fair Value of Equity and Convertible Securities																								0.1						(2.0)						(1.8)						(1.0)						2.7
Net Realized Investment Gains																								0.7						3.1						0.9						1.2						5.2
Impairment Losses																								0.2						(1.6)						(1.7)						(0.1)						(1.2)
Acquisition and Disposition Related Transaction, Integration, Restructuring and Other Costs																								(4.2)						(7.5)						(9.1)						(5.1)						(10.1)
Debt Extinguishment, Pension Settlement and Other Charges																								0.4						(7.3)						(2.2)						2.1						—
Non-Core Operations																								(3.9)						(2.4)						(17.4)						(13.4)						5.0
Net Income attributable to Kemper Corporation																								$	99.7					$	97.4					$	73.7					$	75.4					$	71.3
1Non-GAAP Financial Measure. See pages 28-31 for definition.

        

13

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Kemper Corporation

Catastrophe Frequency and Severity

(Dollars in Millions)

(Unaudited)

						Three Months Ended March 31, 2025
						Specialty Property & Casualty Insurance Segment												Life Insurance Segment												Non-Core Operations												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						15						$	3.8					6						$	0.3					11						$	3.1					16						$	7.2
$5 - $10						—						—						—						—						—						—						—						—
$10 - $15						—						—						—						—						—						—						—						—
$15 - $20						—						—						—						—						—						—						—						—
$20 - $25						—						—						—						—						—						—						—						—
Greater Than $25						—						—						—						—						—						—						—						—
Total						15						$	3.8					6						$	0.3					11						$	3.1					16						$	7.2
						Three Months Ended March 31, 2024
						Specialty Property & Casualty Insurance Segment												Life Insurance Segment												Non-Core Operations												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						19						$	4.1					11						$	0.2					18						$	11.7					19						$	16.0
$5 - $10						—						—						—						—						—						—						—						—
$10 - $15						—						—						—						—						—						—						—						—
$15 - $20						—						—						—						—						—						—						—						—
$20 - $25						—						—						—						—						—						—						—						—
Greater Than $25						—						—						—						—						—						—						—						—
Total						19						$	4.1					11						$	0.2					18						$	11.7					19						$	16.0
1Current accident year net incurred catastrophe Losses and LAE only.

14

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Kemper Corporation

Specialty Property & Casualty Insurance Segment

Results of Operations and Selected Financial Information

(Dollars in Millions)

(Unaudited)

																								Three Months Ended
																								Mar 31, 2025						Dec 31, 2024						Sep 30, 2024						Jun 30, 2024						Mar 31, 2024
Results of Operations
Net Premiums Written																								$	1,068.8					$	948.9					$	938.0					$	933.9					$	864.6
Total Specialty P&C:
Personal Automobile																								$	753.7					$	753.3					$	731.3					$	691.5					$	675.3
Commercial Automobile																								208.5						201.5						187.7						171.1						164.7
Earned Premiums																								962.2						954.8						919.0						862.6						840.0
Net Investment Income																								50.5						49.9						52.0						46.6						41.1
Other Income																								1.3						1.5						1.6						1.6						1.4
Total Revenues																								1,014.0						1,006.2						972.6						910.8						882.5
Incurred Losses and LAE related to:
Current Year:
Non-catastrophe Losses and LAE																								682.3						668.8						644.2						592.8						609.0
Catastrophe Losses and LAE																								3.8						1.9						3.6						10.3						4.1
Prior Years:
Non-catastrophe Losses and LAE																								0.5						1.9						(0.1)						(0.8)						5.3
Catastrophe Losses and LAE																								0.2						(0.1)						0.2						(0.1)						0.7
Total Incurred Losses and LAE																								686.8						672.5						647.9						602.2						619.1
Insurance Expenses																								205.1						207.0						194.9						180.7						176.9
Segment Adjusted Operating Income																								122.1						126.7						129.8						127.9						86.5
Income Tax Expense																								24.2						25.5						26.2						25.6						17.3
Total Segment Adjusted Net Operating Income																								$	97.9					$	101.2					$	103.6					$	102.3					$	69.2
Ratios Based On Earned Premiums
Current Year Non-catastrophe Losses and LAE Ratio																								70.9		%				70.0		%				70.1		%				68.7		%				72.5		%
Current Year Catastrophe Losses and LAE Ratio																								0.4						0.2						0.4						1.2						0.5
Prior Years Non-catastrophe Losses and LAE Ratio																								0.1						0.2						—						(0.1)						0.6
Prior Years Catastrophe Losses and LAE Ratio																								—						—						—						—						0.1
Total Incurred Loss and LAE Ratio																								71.4						70.4						70.5						69.8						73.7
Insurance Expense Ratio																								21.3						21.7						21.2						20.9						21.1
Combined Ratio																								92.7		%				92.1		%				91.7		%				90.7		%				94.8		%
Underlying Combined Ratio1
Current Year Non-catastrophe Losses and LAE Ratio																								70.9		%				70.0		%				70.1		%				68.7		%				72.5		%
Insurance Expense Ratio																								21.3						21.7						21.2						20.9						21.1
Underlying Combined Ratio																								92.2		%				91.7		%				91.3		%				89.6		%				93.6		%
Non-GAAP Measure Reconciliation
Combined Ratio as Reported																								92.7		%				92.1		%				91.7		%				90.7		%				94.8		%
Less:
Current Year Catastrophe Losses and LAE Ratio																								0.4						0.2						0.4						1.2						0.5
Prior Years Non-catastrophe Losses and LAE Ratio																								0.1						0.2						—						(0.1)						0.6
Prior Years Catastrophe Losses and LAE Ratio																								—						—						—						—						0.1
Underlying Combined Ratio																								92.2		%				91.7		%				91.3		%				89.6		%				93.6		%
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.

15

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Kemper Corporation

Specialty Property & Casualty Insurance Segment

Results of Operations and Selected Financial Information (continued)

(Dollars in Millions)

(Unaudited)

																								Mar 31, 2025						Dec 31, 2024						Sep 30, 2024						Jun 30, 2024						Mar 31, 2024
Insurance Reserves:
Non-Standard Automobile																								$	1,640.3					$	1,626.0					$	1,605.3					$	1,597.1					$	1,633.1
Commercial Automobile																								771.5						721.9						677.5						640.5						618.1
Insurance Reserves																								$	2,411.8					$	2,347.9					$	2,282.8					$	2,237.6					$	2,251.2
Insurance Reserves:
Loss and Allocated LAE Reserves:
Case and Allocated LAE																								$	930.1					$	921.8					$	932.5					$	952.8					$	965.7
Incurred but Not Reported																								1,300.5						1,250.6						1,177.5						1,113.1						1,114.8
Total Loss Reserves																								2,230.6						2,172.4						2,110.0						2,065.9						2,080.5
Unallocated LAE Reserves																								181.2						175.5						172.8						171.7						170.7
Insurance Reserves																								$	2,411.8					$	2,347.9					$	2,282.8					$	2,237.6					$	2,251.2

16

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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, 2025						Dec 31, 2024						Sep 30, 2024						Jun 30, 2024						Mar 31, 2024
Results of Operations
Net Premiums Written																								$	823.9					$	740.6					$	735.1					$	739.5					$	672.5
Earned Premiums																								$	753.7					$	753.3					$	731.3					$	691.5					$	675.3
Net Investment Income																								31.8						31.6						33.0						30.3						26.9
Other Income																								1.2						1.3						1.5						1.5						1.3
Total Revenues																								786.7						786.2						765.8						723.3						703.5
Incurred Losses and LAE related to:
Current Year:
Non-catastrophe Losses and LAE																								528.4						519.6						507.8						471.6						485.7
Catastrophe Losses and LAE																								2.7						1.0						2.1						7.9						3.5
Prior Years:
Non-catastrophe Losses and LAE																								(4.7)						(5.3)						(2.7)						0.6						6.5
Catastrophe Losses and LAE																								0.1						—						0.1						—						0.6
Total Incurred Losses and LAE																								526.5						515.3						507.3						480.1						496.3
Insurance Expenses																								166.8						168.8						158.8						148.0						145.6
Adjusted Operating Income																								93.4						102.1						99.7						95.2						61.6
Income Tax Expense																								18.7						20.7						20.2						19.3						12.3
Total Product Line Adjusted Net Operating Income																								$	74.7					$	81.4					$	79.5					$	75.9					$	49.3
Ratios Based On Earned Premiums
Current Year Non-catastrophe Losses and LAE Ratio																								70.1		%				69.0		%				69.5		%				68.2		%				71.9		%
Current Year Catastrophe Losses and LAE Ratio																								0.4						0.1						0.3						1.1						0.5
Prior Years Non-catastrophe Losses and LAE Ratio																								(0.6)						(0.7)						(0.4)						0.1						1.0
Prior Years Catastrophe Losses and LAE Ratio																								—						—						—						—						0.1
Total Incurred Loss and LAE Ratio																								69.9						68.4						69.4						69.4						73.5
Insurance Expense Ratio																								22.1						22.4						21.7						21.4						21.6
Combined Ratio																								92.0		%				90.8		%				91.1		%				90.8		%				95.1		%
Underlying Combined Ratio1
Current Year Non-catastrophe Losses and LAE Ratio																								70.1		%				69.0		%				69.5		%				68.2		%				71.9		%
Insurance Expense Ratio																								22.1						22.4						21.7						21.4						21.6
Underlying Combined Ratio																								92.2		%				91.4		%				91.2		%				89.6		%				93.5		%
Non-GAAP Measure Reconciliation
Combined Ratio																								92.0		%				90.8		%				91.1		%				90.8		%				95.1		%
Less:
Current Year Catastrophe Losses and LAE Ratio																								0.4						0.1						0.3						1.1						0.5
Prior Years Non-catastrophe Losses and LAE Ratio																								(0.6)						(0.7)						(0.4)						0.1						1.0
Prior Years Catastrophe Losses and LAE Ratio																								—						—						—						—						0.1
Underlying Combined Ratio																								92.2		%				91.4		%				91.2		%				89.6		%				93.5		%
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.

17

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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, 2025						Dec 31, 2024						Sep 30, 2024						Jun 30, 2024						Mar 31, 2024
Results of Operations
Net Premiums Written																								$	244.9					$	208.3					$	202.9					$	194.4					$	192.1
Earned Premiums																								$	208.5					$	201.5					$	187.7					$	171.1					$	164.7
Net Investment Income																								18.7						18.3						19.0						16.3						14.2
Other Income																								0.1						0.2						0.1						0.1						0.1
Total Revenues																								227.3						220.0						206.8						187.5						179.0
Incurred Losses and LAE related to:
Current Year:
Non-catastrophe Losses and LAE																								153.9						149.2						136.4						121.2						123.3
Catastrophe Losses and LAE																								1.1						0.9						1.5						2.4						0.6
Prior Years:
Non-catastrophe Losses and LAE																								5.2						7.2						2.6						(1.4)						(1.2)
Catastrophe Losses and LAE																								0.1						(0.1)						0.1						(0.1)						0.1
Total Incurred Losses and LAE																								160.3						157.2						140.6						122.1						122.8
Insurance Expenses																								38.3						38.2						36.1						32.7						31.3
Adjusted Operating Income																								28.7						24.6						30.1						32.7						24.9
Income Tax Expense																								5.5						4.8						6.0						6.3						5.0
Total Product Line Adjusted Net Operating Income																								$	23.2					$	19.8					$	24.1					$	26.4					$	19.9
Ratios Based On Earned Premiums
Current Year Non-catastrophe Losses and LAE Ratio																								73.9		%				74.0		%				72.6		%				70.9		%				74.8		%
Current Year Catastrophe Losses and LAE Ratio																								0.5						0.4						0.8						1.4						0.4
Prior Years Non-catastrophe Losses and LAE Ratio																								2.5						3.6						1.4						(0.8)						(0.7)
Prior Years Catastrophe Losses and LAE Ratio																								—						—						0.1						(0.1)						0.1
Total Incurred Loss and LAE Ratio																								76.9						78.0						74.9						71.4						74.6
Insurance Expense Ratio																								18.4						19.0						19.2						19.1						19.0
Combined Ratio																								95.3		%				97.0		%				94.1		%				90.5		%				93.6		%
Underlying Combined Ratio1
Current Year Non-catastrophe Losses and LAE Ratio																								73.9		%				74.0		%				72.6		%				70.9		%				74.8		%
Insurance Expense Ratio																								18.4						19.0						19.2						19.1						19.0
Underlying Combined Ratio																								92.3		%				93.0		%				91.8		%				90.0		%				93.8		%
Non-GAAP Measure Reconciliation
Combined Ratio																								95.3		%				97.0		%				94.1		%				90.5		%				93.6		%
Less:
Current Year Catastrophe Losses and LAE Ratio																								0.5						0.4						0.8						1.4						0.4
Prior Years Non-catastrophe Losses and LAE Ratio																								2.5						3.6						1.4						(0.8)						(0.7)
Prior Years Catastrophe Losses and LAE Ratio																								—						—						0.1						(0.1)						0.1
Underlying Combined Ratio																								92.3		%				93.0		%				91.8		%				90.0		%				93.8		%
1Underlying Combined Ratio is a non-GAAP measure, which is computed as the difference between three operating ratios: the combined ratio, the effect of catastrophes (excluding development of prior-year catastrophes) on the combined ratio and the effect of prior-year reserve development at the reporting date (including development on prior-year catastrophes) on the combined ratio.

    

18

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Kemper Corporation

Life Insurance Segment

Results of Operations and Selected Financial Information

(Dollars in Millions)

(Unaudited)

																								Three Months Ended
																								Mar 31, 2025						Dec 31, 2024						Sep 30, 2024						Jun 30, 2024						Mar 31, 2024
Results of Operations
Earned Premiums																								$	99.7					$	95.2					$	100.6					$	100.8					$	97.3
Net Investment Income																								48.4						45.5						50.3						30.5						44.3
Other Income																								0.7						0.4						0.2						0.2						0.3
Total Revenues																								148.8						141.1						151.1						131.5						141.9
Policyholders’ Benefits and Incurred Losses and LAE2																								62.2						43.5						64.1						63.9						63.0
Insurance Expenses																								66.4						69.2						69.0						69.0						64.9
Segment Adjusted Operating Income (Loss)																								20.2						28.4						18.0						(1.4)						14.0
Income Tax Expense (Benefit)																								3.0						4.9						3.0						(1.2)						2.1
Total Segment Adjusted Net Operating Income (Loss)																								$	17.2					$	23.5					$	15.0					$	(0.2)					$	11.9

    

19

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Kemper Corporation

Life Insurance Segment

Results of Operations and Selected Financial Information (continued)

(Dollars in Millions)

(Unaudited)

																								Mar 31, 2025						Dec 31, 2024						Sep 30, 2023						Jun 30, 2024						Mar 31, 2024
Insurance Reserves:
Future Policyholder Benefits																								$	3,186.0					$	3,154.3					$	3,380.8					$	3,155.3					$	3,248.8
Incurred Losses and LAE Reserves:
Life																								39.0						40.8						40.4						42.1						40.7
Accident and Health																								4.5						4.6						4.6						4.6						4.7
Property																								2.1						2.7						3.0						2.6						2.5
Total Incurred Losses and LAE Reserves																								45.6						48.1						48.0						49.3						47.9
Insurance Reserves																								$	3,231.6					$	3,202.4					$	3,428.8					$	3,204.6					$	3,296.7

20

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Kemper Corporation

Expenses

(Dollars in Millions)

(Unaudited)

																								Three Months Ended
																								Mar 31, 2025						Dec 31, 2024						Sep 30, 2024						Jun 30, 2024						Mar 31, 2024
Insurance and Other Expenses:
Insurance Expenses:
Policy Acquisition Costs, Net of Amortization																								$	164.3					$	166.2					$	161.4					$	159.1					$	154.9
Business Unit Operating Costs																								75.1						76.3						72.8						64.0						64.3
Corporate Overhead Costs																								46.7						47.4						49.3						49.4						48.8
Insurance Expenses																								286.1						289.9						283.5						272.5						268.0
Other Expenses:
Acquisition and Disposition Related Transaction, Integration, Restructuring and Other Costs																								5.3						9.5						11.5						6.5						12.8
Pension Settlement																								—						—						0.1						(2.7)						—
Other Corporate Costs																								3.1						10.1						9.4						3.4						5.6
Other Expenses																								8.4						19.6						21.0						7.2						18.4
Insurance and Other Expenses																								294.5						309.5						304.5						279.7						286.4
Interest Expense																								11.4						14.6						14.4						13.9						14.0
Total Insurance, Interest, and Other Expenses																								$	305.9					$	324.1					$	318.9					$	293.6					$	300.4

21

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Kemper Corporation

Details of Investment Performance

(Dollars in Millions)

(Unaudited)

																								Three Months Ended
																								Mar 31, 2025						Dec 31, 2024						Sep 30, 2024						Jun 30, 2024						Mar 31, 2024
Net Investment Income
Interest on Fixed Income Securities1																								$	76.4					$	76.3					$	79.0					$	80.2					$	79.8
Dividends on Equity Securities Excluding Alternative Investments																								0.8						0.8						0.9						0.9						2.8
Alternative Investments:
Equity Method Limited Liability Investments																								(0.7)						(2.3)						0.9						(14.7)						(2.1)
Limited Liability Investments Included in Equity Securities																								3.7						5.8						9.1						6.2						3.4
Total Alternative Investments																								3.0						3.5						10.0						(8.5)						1.3
Short-term Investments																								8.6						10.5						8.4						7.3						7.3
Loans to Policyholders																								5.3						5.2						5.5						5.1						5.2
Real Estate																								2.2						2.1						2.2						2.2						2.3
Company-Owned Life Insurance																								10.2						10.0						9.7						8.9						7.1
Other																								2.0						0.9						2.2						2.6						2.5
Total Investment Income																								108.5						109.3						117.9						98.7						108.3
Investment Expenses:
Real Estate																								2.1						2.6						1.8						2.1						2.2
Other Investment Expenses1																								5.2						3.7						5.0						3.6						5.7
Total Investment Expenses																								7.3						6.3						6.8						5.7						7.9
Net Investment Income																								$	101.2					$	103.0					$	111.1					$	93.0					$	100.4
Net Realized Investment Gains (Losses)
Fixed Maturities:
Gains on Sales																								$	1.3					$	4.3					$	0.9					$	2.2					$	12.8
Losses on Sales																								(0.5)						(0.6)						—						(0.3)						(2.3)
Losses on Hedging Activity																								—						—						—						—						(7.9)
Equity Securities:
Gains on Sales																								—						0.1						—						—						4.1
Losses on Sales																								—						—						—						—						(0.1)
Other Investments:
Gains on Sales																								0.1						0.9						1.8						1.5						—
Losses on Sales																								—						(0.7)						(1.6)						(1.9)						—
Net Realized Investment Gains																								$	0.9					$	4.0					$	1.1					$	1.5					$	6.6
Net Impairment Losses Recognized in Earnings
Fixed Maturities																								$	0.3					$	(2.0)					$	(2.0)					$	0.2					$	(1.0)
Equity Securities																								—						—						—						—						(0.4)
Real Estate																								—						(0.1)						(0.2)						(0.1)						—
Other																								—						0.1						—						(0.2)						(0.1)
Net Impairment Losses Recognized in Earnings																								$	0.3					$	(2.0)					$	(2.2)					$	(0.1)					$	(1.5)
1Reduced by interest expense incurred on FHLB borrowings used for spread lending purposes of $4.8 million, $4.9 million, $4.8 million, $5.4 million, $5.2 million, for the three months ended March 31, 2025, December 31, 2024, September 30, 2024, June 30, 2024 and March 31, 2024, respectively.

 

22

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Kemper Corporation

Details of Invested Assets

(Dollars in Millions)

(Unaudited)

						Mar 31, 2025												Dec 31, 2024												Dec 31, 2023
						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						$	511.8					6.0		%				$	486.8					5.5		%				$	511.5					5.7		%
States and Political Subdivisions						1,232.2						14.3						1,233.2						13.9						1,401.9						15.7
Foreign Governments						6.6						0.1						6.6						0.1						3.8						—
Corporate Securities:
Bonds and Notes						3,615.3						42.0						3,519.6						39.6						3,690.8						41.4
Redeemable Preferred Stocks						9.0						0.1						8.9						0.1						8.3						0.1
Collateralized Loan Obligations						789.3						9.2						741.5						8.3						949.8						10.7
Other Mortgage- and Asset-backed						394.4						4.6						413.0						4.6						315.8						3.5
Total Fixed Maturities Reported at Fair Value						6,558.6						76.3						6,409.6						72.1						6,881.9						77.1
Equity Securities Reported at Fair Value:
Preferred Stocks						23.3						0.3						22.6						0.3						25.5						0.3
Common Stocks						2.1						—						1.4						—						1.2						—
Other Equity Interests:
Exchange Traded Funds						10.2						0.1						10.9						0.1						7.7						0.1
Limited Liability Companies and Limited Partnerships						196.7						2.3						183.6						2.1						191.4						2.1
Total Equity Securities Reported at Fair Value						232.3						2.7						218.5						2.5						225.8						2.5
Equity Method Limited Liability Investments						185.1						2.1						186.3						2.1						221.7						2.5
Short-term Investments at Cost which Approximates Fair Value						545.3						6.3						1,037.1						11.7						520.9						5.9
Company Owned Life Insurance						546.5						6.4						539.2						6.1						513.5						5.8
Loans to Policyholders						279.8						3.3						280.7						3.2						281.2						3.2
Other Investments:
Equity Securities Reported at Modified Cost						21.7						0.3						22.5						0.2						32.6						0.4
Real Estate at Depreciated Cost						99.7						1.2						99.5						1.1						94.7						1.1
Mortgage Loans						103.1						1.2						75.3						0.8						99.8						1.1
Alternative Energy Partnership Investments						17.3						0.2						17.6						0.2						17.3						0.2
Other						2.7						—						2.2						—						14.8						0.2
Total Other Investments						244.5						2.9						217.1						2.3						259.2						3.0
Total Investments						$	8,592.1					100.0		%				$	8,888.5					100.0		%				$	8,904.2					100.0		%

23

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Kemper Corporation

Details of Invested Assets (continued)

(Dollars in Millions)

(Unaudited)

						Mar 31, 2025												Dec 31, 2024												Dec 31, 2023
						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						$	4,670.1					71.2		%				$	4,576.4					71.4		%				$	4,962.0					72.1		%
BBB						1,526.2						23.3						1,557.6						24.3						1,657.3						24.1
BB, B						310.1						4.7						221.7						3.5						204.4						3.0
CCC or Lower						52.2						0.8						53.9						0.8						58.2						0.8
Total Investments in Fixed Maturities						$	6,558.6					100.0		%				$	6,409.6					100.0		%				$	6,881.9					100.0		%
Duration (in Years)
Total Investments in Fixed Maturities						7.5												7.7												8.1

24

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Kemper Corporation

Investment Concentration

(Dollars in Millions)

(Unaudited)

						Mar 31, 2025												Dec 31, 2024												Dec 31, 2023
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						$	2,094.1					24.4		%				$	1,969.1					22.2		%				$	2,070.5					23.3		%
Manufacturing						1,014.5						11.8						1,014.3						11.4						1,077.6						12.1
Transportation, Communication and Utilities						797.9						9.3						793.0						8.9						807.3						9.1
Services						589.0						6.9						582.9						6.6						639.4						7.2
Mining						156.1						1.8						153.3						1.7						174.3						2.0
Retail Trade						130.0						1.5						125.7						1.4						156.0						1.8
Construction						9.8						0.1						11.7						0.1						4.4						—
Other						26.1						0.3						33.0						0.4						35.2						0.4
Total Fair Value of Non-governmental Fixed Maturities						$	4,817.5					56.1		%				$	4,683.0					52.7		%				$	4,964.7					55.9		%

 

												Mar 31, 2025
Ten Largest Investment Exposures1												Fair Value						Percent of Total Investments
Fixed Maturities:
States including their Political Subdivisions:
California												$	134.6					1.6		%
Texas												102.3						1.2
Michigan												83.2						1.0
Georgia												70.1						0.8
New York												60.5						0.7
Florida												52.8						0.6
Pennsylvania												47.7						0.6
Louisiana												38.3						0.4
Virginia												36.5						0.4
Colorado												35.1						0.4
Total												$	661.1					7.7		%
1Excluding Investments in U.S. Government and Government Agencies and Authorities at March 31, 2025.

 

25

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Kemper Corporation

Municipal Bond Securities

(Dollars in Millions)

(Unaudited)

						Mar 31, 2025
						State General Obligation						Political Subdivision General Obligation						Revenue						Total Fair Value						Percent of Total Muni Bond						Percent of Total Investments
California						$	8.8					$	125.8					$	—					$	134.6					10.9		%				1.6		%
Texas						10.5						88.3						3.5						102.3						8.3						1.2
Michigan						—						72.9						10.3						83.2						6.8						1.0
Georgia						3.2						61.5						5.4						70.1						5.7						0.8
New York						11.6						48.9						—						60.5						4.9						0.7
Florida						—						52.8						—						52.8						4.3						0.6
Pennsylvania						3.1						44.6						—						47.7						3.9						0.6
Louisiana						1.3						21.7						15.3						38.3						3.1						0.4
Virginia						—						30.4						6.1						36.5						3.0						0.4
Colorado						—						35.1						—						35.1						2.9						0.4
New Mexico						—						32.0						—						32.0						2.6						0.4
Ohio						—						31.1						—						31.1						2.5						0.4
Illinois						0.6						30.2						—						30.8						2.5						0.4
Massachusetts						—						24.0						5.2						29.2						2.4						0.3
Oregon						2.4						17.8						7.9						28.1						2.3						0.3
Missouri						1.1						26.9						—						28.0						2.3						0.3
Minnesota						1.0						25.1						—						26.1						2.1						0.3
Maryland						—						25.3						—						25.3						2.1						0.3
Oklahoma						—						22.5						—						22.5						1.8						0.3
Tennessee						4.0						18.3						—						22.3						1.8						0.3
Washington						1.4						18.0						2.5						21.9						1.8						0.3
Connecticut						—						16.3						2.6						18.9						1.5						0.2
North Carolina						1.7						16.8						—						18.5						1.5						0.2
Rhode Island						1.5						16.4						—						17.9						1.5						0.2
District of Columbia						—						15.0						2.7						17.7						1.4						0.2
New Hampshire						0.4						17.3						—						17.7						1.4						0.2
Mississippi						—						10.1						7.5						17.6						1.4						0.2
Indiana						—						17.3						—						17.3						1.4						0.2
Arizona						—						14.6						—						14.6						1.2						0.2
South Carolina						—						13.6						—						13.6						1.1						0.2
North Dakota						—						12.7						—						12.7						1.0						0.1
Alabama						—						12.6						—						12.6						1.0						0.1
Utah						—						11.8						—						11.8						1.0						0.1
Iowa						—						11.4						—						11.4						0.9						0.1
New Jersey						—						9.5						—						9.5						0.8						0.1
Montana						—						9.1						—						9.1						0.7						0.1
Nebraska						—						9.0						—						9.0						0.7						0.1
Hawaii						2.5						2.8						2.7						8.0						0.6						0.1
All Other States						2.5						30.7						2.4						35.6						2.9						0.4
Total						$	57.6					$	1,100.2					$	74.1					$	1,231.9					100.0		%				14.3		%

26

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Kemper Corporation

Investments in Limited Liability

Companies and Limited Partnerships

(Dollars in Millions)

(Unaudited)

						Unfunded Commitment						Reported Value
Asset Class						Mar 31, 2025						Mar 31, 2025						Dec 31, 2024
Reported as Equity Method Limited Liability Investments:
Senior Debt						$	47.6					$	21.2					$	19.1
Mezzanine Debt						41.9						115.1						116.7
Secondary Transactions						1.6						5.1						5.5
Leveraged Buyout						0.6						7.4						7.5
Real Estate						—						27.4						27.3
Distressed Debt						—						3.6						4.4
Hedge Fund						—						0.1						0.1
Other						0.1						5.2						5.7
Total Equity Method Limited Liability Investments						91.8						185.1						186.3
Reported as Other Equity Interests at Fair Value:
Mezzanine Debt						66.2						118.4						116.9
Leveraged Buyout						31.3						30.8						19.2
Distressed Debt						15.7						11.1						11.7
Senior Debt						7.7						26.3						26.3
Growth Equity						7.2						7.7						7.0
Secondary Transactions						1.6						2.2						2.4
Other						0.2						0.1						0.1
Total Reported as Other Equity Interests at Fair Value						129.9						196.6						183.6
Reported as Other Investments:
Alternative Energy Partnership Investments						—						17.3						17.6
Equity Interests at Modified Cost						—						1.8						1.8
Total Reported as Other Equity Investments						—						19.1						19.4
Total Investments in Limited Liability Companies and Limited Partnerships						$	221.7					$	400.8					$	389.3

27

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

(i) Change in Fair Value of Equity and Convertible Securities;

(ii) Net Realized Investment Gains;

(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 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 for the three months ended March 31, 2025 or 2024.

The Company believes that Adjusted Consolidated Net Operating Income provides investors with a valuable measure of its ongoing performance because it reveals underlying operational performance trends that otherwise might be less apparent if the items were not excluded. Change in Fair Value of Equity and Convertible Securities, Net Realized Investment Gains 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.

28

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Kemper Corporation

Definitions of Non-GAAP Financial Measures (continued)

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

																								Three Months Ended
Dollars in Millions (Unaudited)																								Mar 31, 2025						Dec 31, 2024						Sep 30, 2024						Jun 30, 2024						Mar 31, 2024
Net Income (Loss) attributable to Kemper Corporation																								$	99.7					$	97.4					$	73.7					$	75.4					$	71.3
Less Net Income (Loss) From:
Change in Fair Value of Equity and Convertible Securities																								0.1						(2.0)						(1.8)						(1.0)						2.7
Net Realized Investment Gains																								0.7						3.1						0.9						1.2						5.2
Impairment Losses																								0.2						(1.6)						(1.7)						(0.1)						(1.2)
Acquisition and Disposition Related Transaction, Integration, Restructuring and Other Costs																								(4.2)						(7.5)						(9.1)						(5.1)						(10.1)
Debt Extinguishment, Pension Settlement and Other Charges																								0.4						(7.3)						(2.2)						2.1						—
Non-Core Operations																								(3.9)						(2.4)						(17.4)						(13.4)						5.0
Adjusted Consolidated Net Operating Income																								$	106.4					$	115.1					$	105.0					$	91.7					$	69.7

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

																								Three Months Ended
Dollars in Millions (Unaudited)																								Mar 31, 2025						Dec 31, 2024						Sep 30, 2024						Jun 30, 2024						Mar 31, 2024
Net Income attributable to Kemper Corporation per Unrestricted Share																								$	1.56					$	1.52					$	1.15					$	1.17					$	1.11
Less Net Income (Loss) per Unrestricted Share From:
Change in Fair Value of Equity and Convertible Securities																								—						(0.03)						(0.02)						(0.02)						0.04
Net Realized Investment Gains																								0.01						0.04						0.01						0.02						0.09
Impairment Losses																								—						(0.03)						(0.03)						—						(0.02)
Acquisition and Disposition Related Transaction, Integration, Restructuring and Other Costs																								(0.07)						(0.12)						(0.14)						(0.08)						(0.16)
Debt Extinguishment, Pension Settlement and Other Charges																								0.01						(0.11)						(0.03)						0.03						—
Non-Core Operations																								(0.06)						(0.04)						(0.27)						(0.21)						0.08
Adjusted Consolidated Net Operating Income per Unrestricted Share																								$	1.67					$	1.81					$	1.63					$	1.43					$	1.08

29

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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 Ended
Dollars in Millions (Unaudited)																								Mar 31, 2025						Dec 31, 2024						Sep 30, 2024						Jun 30, 2024						Mar 31, 2024
Numerator:
Annualized Net Income (Loss) attributable to Kemper Corporation																								$	398.8					$	389.6					$	294.8					$	301.6					$	285.2
Denominator:
Average Shareholders' Equity1																								$	2,853.0					$	2,780.9					$	2,722.3					$	2,630.5					$	2,547.5
Less: Average Net Unrealized Losses on Fixed Maturities																								667.6						576.1						570.8						652.2						576.1
Less: Average Change in Discount Rate on Future Life Policyholder Benefits																								(373.2)						(286.6)						(275.4)						(315.1)						(216.3)
Less: Average Goodwill																								(1,250.7)						(1,250.7)						(1,250.7)						(1,250.7)						(1,250.7)
Average Adjusted Shareholders' Equity1																								$	1,896.7					$	1,819.7					$	1,767.0					$	1,716.9					$	1,656.6
Return on Shareholders' Equity:
Return on Shareholders' Equity																								14.0		%				14.0		%				10.8		%				11.5		%				11.2		%
Return on Adjusted Shareholders' Equity																								21.0		%				21.4		%				16.7		%				17.6		%				17.2		%
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.

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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)																								Mar 31, 2025						Dec 31, 2024						Sep 30, 2024						Jun 30, 2024						Mar 31, 2024
Numerator:
Kemper Corporation Shareholders’ Equity																								$	2,917.6					$	2,788.4					$	2,773.3					$	2,671.2					$	2,589.8
Less: Net Unrealized Losses on Fixed Maturities																								638.6						696.5						455.8						685.9						618.4
Less: Change in Discount Rate on Future Life Policyholder Benefits																								(366.0)						(380.3)						(192.9)						(358.0)						(272.1)
Less: Goodwill																								(1,250.7)						(1,250.7)						(1,250.7)						(1,250.7)						(1,250.7)
Adjusted Shareholders' Equity																								$	1,939.5					$	1,853.9					$	1,785.5					$	1,748.4					$	1,685.4
Denominator:
Common Shares Issued and Outstanding																								63.979						63.840						64.044						64.427						64.358
Book Value Per Share:
Book Value Per Share																								$	45.60					$	43.68					$	43.30					$	41.46					$	40.24
Less: Net Unrealized Losses on Fixed Maturities																								9.98						10.91						7.12						10.65						9.61
Less: Change in Discount Rate on Future Life Policyholder Benefits																								(5.72)						(5.96)						(3.01)						(5.56)						(4.23)
Less: Goodwill																								(19.55)						(19.59)						(19.53)						(19.41)						(19.43)
Adjusted Book Value Per Share																								$	30.31					$	29.04					$	27.88					$	27.14					$	26.19

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