Kemper (KMPR) 8-K Kemper Corporation Reports Second Quarter 2015 Earnings

Exhibit 99.2

Investor Supplement

Second Quarter 2015

The financial statements and financial exhibits included herein are unaudited. These financial statements and exhibits should be read in conjunction with the Company’s periodic reports on Form 10-K, Form 10-Q and Form 8-K. The results of operations for interim periods should not be considered indicative of results to be expected for the full year.

Non-GAAP Financial Measures

This document contains non-GAAP financial measures to analyze the Company’s operating performance for the periods presented. Because the Company’s calculation of these measures may differ from similar measures used by other companies, investors should be careful when comparing the Company’s non-GAAP financial measures to those of other companies. For detailed disclosures on non-GAAP financial measures please refer to the “Definitions of Non-GAAP Financial Measures” on Page 29.

Kemper Corporation

Investor Supplement

Second Quarter 2015

Table of Contents

	Page
Consolidated Financial Highlights	3
Consolidated Statements of Income	4
Consolidated Balance Sheets	5
Consolidated Statements of Cash Flows	6-7
Capital Metrics	8
Debt Outstanding and Ratings	9
Segment Summary Results:
Revenues	10
Operating Profit (Loss)	11
Net Operating Income (Loss)	11
Earned Premiums by Product	12
Net Investment Income by Segment	12
Catastrophe Frequency and Severity	13
Property & Casualty Insurance Segment - Results of Operations and Selected Financial Information	14-15
Property & Casualty Insurance Segment - Results of Operations and Selected Financial Information by Product:
Standard Personal Automobile Insurance	16
Non-standard Personal Automobile Insurance	17
Total Personal Automobile Insurance	18
Commercial Automobile Insurance	19
Total Automobile Insurance	20
Homeowners Insurance	21
Other Personal Lines	22
Life & Health Insurance Segment - Results of Operations and Selected Financial Information	23
Details of Investment Performance	24
Details of Invested Assets	25
Investment Concentration	26
Municipal Bond Securities	27
Investments in Limited Liability Companies and Limited Partnerships	28
Definitions of Non-GAAP Financial Measures	29-30

Page 2

Kemper Corporation Consolidated Financial Highlights (Dollars in Millions, Except Per Share Amounts) (Unaudited)
	Three Months Ended																		Six Months Ended
	Jun 30, 2015			Mar 31, 2015			Dec 31, 2014			Sep 30, 2014			Jun 30, 2014			Mar 31, 2014			Jun 30, 2015		Jun 30, 2014
For Period Ended
Earned Premiums	$	500.1		$	431.3		$	451.5		$	462.8		$	470.3		$	477.6		$	931.4	$	947.9
Net Investment Income	76.7			70.6			93.1			72.3			72.6			71.1			147.3		143.7
Net Investment Gains (Losses) and Other Income	32.4			(2.7		)	15.1			4.7			(0.4		)	5.9			29.7		5.5
Total Revenues	$	609.2		$	499.2		$	559.7		$	539.8		$	542.5		$	554.6		$	1,108.4	$	1,097.1
Consolidated Net Operating Income 1	$	6.7		$	21.8		$	53.9		$	2.1		$	9.6		$	31.5		$	28.5	$	41.1
Income from Continuing Operations	$	27.4		$	13.5		$	63.3		$	4.8		$	9.3		$	35.2		$	40.9	$	44.5
Net Income	$	29.7		$	13.5		$	65.4		$	4.7		$	9.3		$	35.1		$	43.2	$	44.4
Per Unrestricted Common Share Amounts:
Basic:
Consolidated Net Operating Income 1	$	0.13		$	0.42		$	1.02		$	0.04		$	0.18		$	0.56		$	0.55	$	0.74
Income from Continuing Operations	$	0.53		$	0.26		$	1.20		$	0.09		$	0.17		$	0.63		$	0.79	$	0.80
Net Income	$	0.57		$	0.26		$	1.24		$	0.09		$	0.17		$	0.63		$	0.83	$	0.80
Diluted:
Consolidated Net Operating Income 1	$	0.13		$	0.42		$	1.02		$	0.04		$	0.18		$	0.56		$	0.55	$	0.74
Income from Continuing Operations	$	0.53		$	0.26		$	1.20		$	0.09		$	0.17		$	0.63		$	0.79	$	0.80
Net Income	$	0.57		$	0.26		$	1.24		$	0.09		$	0.17		$	0.63		$	0.83	$	0.80
Dividends Paid to Shareholders Per Share	$	0.24		$	0.24		$	0.24		$	0.24		$	0.24		$	0.24		$	0.48	$	0.48
At Period End
Total Assets	$	8,055.1		$	7,885.0		$	7,833.4		$	7,905.3		$	7,969.8		$	7,944.2
Insurance Reserves	$	4,187.2		$	4,019.6		$	4,007.6		$	4,041.7		$	4,064.2		$	4,067.3
Debt	$	750.2		$	750.0		$	752.1		$	751.9		$	751.7		$	751.4
Shareholders’ Equity	$	2,012.3		$	2,109.9		$	2,090.7		$	2,104.5		$	2,138.6		$	2,144.7
Shareholders’ Equity Excluding Goodwill	$	1,693.8		$	1,798.1		$	1,778.9		$	1,792.7		$	1,826.8		$	1,832.9
Common Shares Issued and Outstanding (In Millions)	51.803			51.826			52.418			52.666			53.497			55.408
Book Value Per Share2	$	38.85		$	40.71		$	39.88		$	39.96		$	39.98		$	38.71
Book Value Per Share Excluding Goodwill1,2	$	32.70		$	34.69		$	33.94		$	34.04		$	34.15		$	33.08
Book Value Per Share Excluding Net Unrealized Gains on Fixed Maturities1,2	$	34.71		$	34.64		$	34.50		$	35.31		$	35.32		$	35.13
Debt to Total Capitalization2	27.2		%	26.2		%	26.5		%	26.3		%	26.0		%	25.9		%
Rolling 12 Months Return on 5-point AverageShareholders Equity2,3	5.4		%	4.4		%	5.4		%	5.0		%	8.2		%	9.4		%
1 Non-GAAP Measure. See page 29 for definition.
2 See Capital Metrics on page 8 for detail calculations.
3 Rolling 12 Months Return on 5-point Average Shareholders Equity is calculated by taking the last 12 months of Net Income (Loss) divided by the 5-point average Shareholders’ Equity. The 5-point Average Shareholders’ Equity is calculated by using a 5-point quarter average of Shareholders’ Equity for the 12 month period.

Page 3

Kemper Corporation Consolidated Statements of Income (Dollars in Millions, Except Per Share Amounts)  (Unaudited)
	Three Months Ended																		Six Months Ended
	Jun 30, 2015			Mar 31, 2015			Dec 31, 2014			Sep 30, 2014			Jun 30, 2014			Mar 31, 2014			Jun 30, 2015			Jun 30, 2014
Revenues:
Earned Premiums	$	500.1		$	431.3		$	451.5		$	462.8		$	470.3		$	477.6		$	931.4		$	947.9
Net Investment Income	76.7			70.6			93.1			72.3			72.6			71.1			147.3			143.7
Other Income	0.6			0.9			0.6			0.5			0.2			0.1			1.5			0.3
Net Realized Gains on Sales of Investments	34.0			3.4			21.0			8.0			3.5			6.6			37.4			10.1
Other-than-temporary Impairment Losses:
Total Other-than-temporary Impairment Losses	(2.2		)	(7.0		)	(6.5		)	(3.8		)	(4.1		)	(0.8		)	(9.2		)	(4.9		)
Portion of Losses Recognized in Other Comprehensive Income	—			—			—			—			—			—			—			—
Net Impairment Losses Recognized in Earnings	(2.2		)	(7.0		)	(6.5		)	(3.8		)	(4.1		)	(0.8		)	(9.2		)	(4.9		)
Total Revenues	609.2			499.2			559.7			539.8			542.5			554.6			1,108.4			1,097.1
Expenses:
Policyholders’ Benefits and Incurred Losses and Loss Adjustment Expenses	375.1			297.7			285.8			300.5			347.5			327.9			672.8			675.4
Insurance Expenses	162.1			144.9			156.4			158.6			161.3			152.1			307.0			313.4
Write-off of Long-lived Asset	11.1			—			—			54.6			—			—			11.1			—
Loss from Early Extinguishment of Debt	—			9.1			—			—			—			—			9.1			—
Interest and Other Expenses	26.6			29.7			24.4			22.1			22.5			22.7			56.3			45.2
Total Expenses	574.9			481.4			466.6			535.8			531.3			502.7			1,056.3			1,034.0
Income from Continuing Operations before Income Taxes	34.3			17.8			93.1			4.0			11.2			51.9			52.1			63.1
Income Tax Benefit (Expense)	(6.9		)	(4.3		)	(29.8		)	0.8			(1.9		)	(16.7		)	(11.2		)	(18.6		)
Income from Continuing Operations	27.4			13.5			63.3			4.8			9.3			35.2			40.9			44.5
Discontinued Operations:
Income (Loss) from Discontinued Operations before Income Taxes	3.5			—			3.4			(0.2		)	—			(0.2		)	3.5			(0.2		)
Income Tax Benefit (Expense)	(1.2		)	—			(1.3		)	0.1			—			0.1			(1.2		)	0.1
Income (Loss) from Discontinued Operations	2.3			—			2.1			(0.1		)	—			(0.1		)	2.3			(0.1		)
Net Income	$	29.7		$	13.5		$	65.4		$	4.7		$	9.3		$	35.1		$	43.2		$	44.4
Income from Continuing Operations Per Unrestricted Share:
Basic	$	0.53		$	0.26		$	1.20		$	0.09		$	0.17		$	0.63		$	0.79		$	0.80
Diluted	$	0.53		$	0.26		$	1.20		$	0.09		$	0.17		$	0.63		$	0.79		$	0.80
Net Income Per Unrestricted Share:
Basic	$	0.57		$	0.26		$	1.24		$	0.09		$	0.17		$	0.63		$	0.83		$	0.80
Diluted	$	0.57		$	0.26		$	1.24		$	0.09		$	0.17		$	0.63		$	0.83		$	0.80
Dividends Paid to Shareholders Per Share	$	0.24		$	0.24		$	0.24		$	0.24		$	0.24		$	0.24		$	0.48		$	0.48
Weighted Average Unrestricted Common Shares Outstanding (in Millions)	51.728			51.873			52.465			52.605			54.667			55.313			51.801			54.990

Page 4

Kemper Corporation Consolidated Balance Sheets (Dollars in Millions)  (Unaudited)
	Jun 30, 2015		Mar 31, 2015		Dec 31, 2014		Sep 30, 2014		Jun 30, 2014		Mar 31, 2014
Assets:
Investments:
Fixed Maturities at Fair Value	$	4,764.0	$	4,803.1	$	4,777.6	$	4,697.2	$	4,680.0	$	4,619.5
Equity Securities at Fair Value	562.9		628.6		632.2		661.4		646.2		648.3
Equity Method Limited Liability Investments at Cost Plus Cumulative Undistributed Earnings	173.5		168.1		184.8		222.8		227.1		239.0
Fair Value Option Investments	160.0		54.2		53.3		50.6		40.3		—
Short-term Investments at Cost which Approximates Fair Value	338.4		357.3		342.2		316.2		480.1		506.9
Other Investments	451.0		450.1		449.6		450.5		448.3		448.2
Total Investments	6,449.8		6,461.4		6,439.7		6,398.7		6,522.0		6,461.9
Cash	93.8		87.7		76.1		93.1		61.8		65.0
Receivables from Policyholders	335.2		293.1		295.3		314.4		313.5		319.5
Other Receivables	267.1		197.0		187.0		247.5		190.5		225.5
Deferred Policy Acquisition Costs	317.5		305.6		303.3		306.7		304.8		301.8
Goodwill	318.5		311.8		311.8		311.8		311.8		311.8
Current and Deferred Income Tax Assets	34.2		10.9		—		4.3		10.1		—
Other Assets	239.0		217.5		220.2		228.8		255.3		258.7
Total Assets	$	8,055.1	$	7,885.0	$	7,833.4	$	7,905.3	$	7,969.8	$	7,944.2
Liabilities and Shareholders’ Equity:
Insurance Reserves:
Life and Health	$	3,312.8	$	3,299.5	$	3,273.7	$	3,260.8	$	3,249.0	$	3,237.7
Property and Casualty	874.4		720.1		733.9		780.9		815.2		829.6
Total Insurance Reserves	4,187.2		4,019.6		4,007.6		4,041.7		4,064.2		4,067.3
Unearned Premiums	606.2		530.0		536.9		568.2		571.8		582.5
Liabilities for Income Taxes	3.6		58.2		36.5		48.7		53.4		30.6
Debt at Amortized Cost	750.2		750.0		752.1		751.9		751.7		751.4
Accrued Expenses and Other Liabilities	495.6		417.3		409.6		390.3		390.1		367.7
Total Liabilities	6,042.8		5,775.1		5,742.7		5,800.8		5,831.2		5,799.5
Shareholders’ Equity:
Common Stock	5.2		5.2		5.2		5.3		5.3		5.5
Paid-in Capital	657.1		655.1		660.1		662.2		671.3		693.5
Retained Earnings	1,204.7		1,189.3		1,202.7		1,155.6		1,183.4		1,231.5
Accumulated Other Comprehensive Income	145.3		260.3		222.7		281.4		278.6		214.2
Total Shareholders’ Equity	2,012.3		2,109.9		2,090.7		2,104.5		2,138.6		2,144.7
Total Liabilities and Shareholders’ Equity	$	8,055.1	$	7,885.0	$	7,833.4	$	7,905.3	$	7,969.8	$	7,944.2

Page 5

Kemper Corporation Consolidated Statements of Cash Flows (Dollars in Millions)  (Unaudited)
	Six Months Ended
	Jun 30, 2015			Jun 30, 2014
Operating Activities:
Net Income	$	43.2		$	44.4
Adjustments to Reconcile Net Income to Net Cash Provided (Used) by Operating Activities:
Increase in Deferred Policy Acquisition Costs	(14.2		)	(1.9		)
Amortization of Intangible Assets Acquired	4.5			3.7
Equity in Earnings of Equity Method Limited Liability Investments	(3.5		)	(4.8		)
Distribution of Accumulated Earnings of Equity Method Limited Liability Investments	1.3			12.4
Increase in Value of Fair Value Option Investments Reported in Net Investment Income	(2.7		)	(0.3		)
Amortization of Investment Securities and Depreciation of Investment Real Estate	7.0			7.3
Net Realized Gains on Sales of Investments	(37.4		)	(10.1		)
Net Impairment Losses Recognized in Earnings	9.2			4.9
Loss from Early Extinguishment of Debt	9.1			—
Depreciation of Property and Equipment	6.5			8.8
Write-off of Long-lived Asset	11.1			—
Decrease in Receivables	7.9			28.9
Increase in Insurance Reserves	23.3			2.6
Decrease in Unearned Premiums	(3.1		)	(27.1		)
Change in Income Taxes	(27.9		)	(12.4		)
Increase in Accrued Expenses and Other Liabilities	27.5			5.5
Other, Net	18.9			10.7
Net Cash Provided by Operating Activities (Carryforward to page 7)	80.7			72.6

Page 6

Kemper Corporation Consolidated Statements of Cash Flows (Dollars in Millions)  (Unaudited)
	Six Months Ended
	Jun 30, 2015			Jun 30, 2014
Net Cash Provided by Operating Activities (Carryforward from page 6)	80.7			72.6
Investing Activities:
Sales, Paydowns and Maturities of Fixed Maturities	404.0			342.8
Purchases of Fixed Maturities	(309.7		)	(225.7		)
Sales of Equity Securities	143.4			69.9
Purchases of Equity Securities	(103.7		)	(81.0		)
Return of Investment of Equity Method Limited Liability Investments	21.0			26.4
Acquisitions of Equity Method Limited Liability Investments	(10.5		)	(16.0		)
Sales of Fair Value Option Investments	—			2.9
Purchases of Fair Value Option Investments	(104.0		)	(42.9		)
Decrease (Increase) in Short-term Investments	22.2			(198.0		)
Improvements of Investment Real Estate	(0.8		)	(1.3		)
Sales of Investment Real Estate	—			0.9
Acquisition of Business, Net of Cash Acquired	(57.6		)	—
Increase in Other Investments	(1.4		)	(2.4		)
Acquisition of Software	(5.6		)	(5.6		)
Disposition of Subsidiary, Net of Cash Disposed	—			8.9
Other, Net	(1.4		)	(4.6		)
Net Cash Used by Investing Activities	(4.1		)	(125.7		)
Financing Activities:
Net Proceeds from Issuances of Debt	288.8			144.2
Repayments of Debt	(300.3		)	—
Common Stock Repurchases	(25.2		)	(70.1		)
Dividends and Dividend Equivalents Paid	(24.8		)	(26.6		)
Cash Exercise of Stock Options	1.9			—
Other, Net	0.7			0.9
Net Cash Provided (Used) by Financing Activities	(58.9		)	48.4
Increase (Decrease) in Cash	17.7			(4.7		)
Cash, Beginning of Year	76.1			66.5
Cash, End of Period	$	93.8		$	61.8

Page 7

Kemper Corporation Capital Metrics (Dollars and Shares in Millions, Except Per Share Amounts) (Unaudited)
	Three Months Ended
	Jun 30, 2015			Mar 31, 2015			Dec 31, 2014			Sep 30, 2014			Jun 30, 2014			Mar 31, 2014
Book Value Per Share
Numerator
Shareholders’ Equity	$	2,012.3		$	2,109.9		$	2,090.7		$	2,104.5		$	2,138.6		$	2,144.7
Less: Goodwill	(318.5		)	(311.8		)	(311.8		)	(311.8		)	(311.8		)	(311.8		)
Shareholders’ Equity Excluding Goodwill	$	1,693.8		$	1,798.1		$	1,778.9		$	1,792.7		$	1,826.8		$	1,832.9
Shareholders’ Equity	$	2,012.3		$	2,109.9		$	2,090.7		$	2,104.5		$	2,138.6		$	2,144.7
Less: Net Unrealized Gains on Fixed Maturities	(214.4		)	(314.6		)	(282.2		)	(244.9		)	(249.0		)	(198.3		)
Shareholders’ Equity Excluding Net Unrealized Gains on Fixed Maturities	$	1,797.9		$	1,795.3		$	1,808.5		$	1,859.6		$	1,889.6		$	1,946.4
Denominator
Common Shares Issued and Outstanding	51.803			51.826			52.418			52.666			53.497			55.408
Book Value Per Share	$	38.85		$	40.71		$	39.88		$	39.96		$	39.98		$	38.71
Book Value Per Share Excluding Goodwill	$	32.70		$	34.69		$	33.94		$	34.04		$	34.15		$	33.08
Book Value Per Share Excluding Unrealized on Fixed Maturities	$	34.71		$	34.64		$	34.50		$	35.31		$	35.32		$	35.13
Return on Shareholders’ Equity
Numerator
Rolling 12 Months Net Income	$	113.3		$	92.9		$	114.5		$	104.3		$	169.7		$	194.4
Denominator (5-point Average)
5-point Average Shareholders’ Equity	$	2,091.2		$	2,117.7		$	2,106.0		$	2,089.7		$	2,069.8		$	2,076.5
Rolling 12 Months Return on Average Shareholders' Equity (5-point Average)	5.4		%	4.4		%	5.4		%	5.0		%	8.2		%	9.4		%
Debt and Total Capitalization
Debt	$	750.2		$	750.0		$	752.1		$	751.9		$	751.7		$	751.4
Shareholders’ Equity	2,012.3			2,109.9			2,090.7			2,104.5			2,138.6			2,144.7
Total Capitalization	$	2,762.5		$	2,859.9		$	2,842.8		$	2,856.4		$	2,890.3		$	2,896.1
Ratio of Debt to Shareholders’ Equity	37.3		%	35.5		%	36.0		%	35.7		%	35.1		%	35.0		%
Ratio of Debt to Total Capitalization	27.2		%	26.2		%	26.5		%	26.3		%	26.0		%	25.9		%
Parent Company Liquidity
Kemper Holding Company Cash and Investments	$	378.8		$	290.2		$	330.3		$	302.4		$	302.7		$	255.9
Borrowings Available Under Credit Agreement	225.0			225.0			225.0			225.0			225.0			225.0
Parent Company Liquidity	$	603.8		$	515.2		$	555.3		$	527.4		$	527.7		$	480.9
Capital Returned to Shareholders
Common Stock Repurchased	$	1.8		$	21.9		$	9.0		$	29.9		$	68.3		$	8.3
Cash Dividends Paid	12.5			12.3			12.6			12.6			13.3			13.3
Total Capital Returned to Shareholders	$	14.3		$	34.2		$	21.6		$	42.5		$	81.6		$	21.6

Page 8

Kemper Corporation Debt Outstanding and Ratings (Dollars in Millions) (Unaudited)
	Jun 30, 2015		Mar 31, 2015		Dec 31, 2014		Sep 30, 2014		Jun 30, 2014		Mar 31, 2014
Kemper Corporation:
Notes Payable under Revolving Credit Agreement	$	—	$	—	$	—	$	—	$	—	$	—
Senior Notes at Amortized Cost:
6.00% Senior Notes due November 30, 2015	—		—		249.5		249.4		249.3		249.2
6.00% Senior Notes due May 15, 2017	358.8		358.6		358.5		358.3		358.2		358.0
4.35% Senior Notes due February 15, 2025	247.3		247.3		—		—		—		—
7.375% Subordinated Debentures due February 27, 2054 at Amortized Cost	144.1		144.1		144.1		144.2		144.2		144.2
Debt Outstanding	$	750.2	$	750.0	$	752.1	$	751.9	$	751.7	$	751.4
Subsidiary Debt:
Federal Home Loan Bank of Dallas	—		—		—		—		—		—
Federal Home Loan Bank of Chicago	—		—		—		—		—		—
	A.M. Best		Moody’s		S&P		Fitch
As of Date of Financial Supplement
Kemper Debt Ratings:
Senior Notes Payable	bbb-		Baa3		BBB-		BBB-
Subordinated Debentures	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-
Reserve National Insurance Company	A-		NR		NR		NR

NR - Not Rated

Page 9

Kemper Corporation Segment Revenues (Dollars in Millions) (Unaudited)
	Three Months Ended																		Six Months Ended
	Jun 30, 2015			Mar 31, 2015			Dec 31, 2014			Sep 30, 2014			Jun 30, 2014			Mar 31, 2014			Jun 30, 2015			Jun 30, 2014
Revenues:
Property & Casualty Insurance:
Earned Premiums:
Personal Automobile	$	252.6		$	189.8		$	198.0		$	205.1		$	212.0		$	216.3		$	442.4		$	428.3
Homeowners	71.6			72.6			75.8			77.9			79.0			79.7			144.2			158.7
Other Personal	11.7			11.7			12.2			12.6			12.9			13.2			23.4			26.1
Total Personal	335.9			274.1			286.0			295.6			303.9			309.2			610.0			613.1
Commercial Automobile	13.5			13.5			14.0			14.1			13.6			13.1			27.0			26.7
Total Earned Premiums	349.4			287.6			300.0			309.7			317.5			322.3			637.0			639.8
Net Investment Income	18.6			14.8			17.1			18.5			19.5			17.6			33.4			37.1
Other Income	0.1			0.3			0.1			0.1			0.2			0.1			0.4			0.3
Total Property & Casualty Insurance	368.1			302.7			317.2			328.3			337.2			340.0			670.8			677.2
Life & Health Insurance:
Earned Premiums:
Life	96.0			88.0			96.0			96.8			97.2			97.6			184.0			194.8
Accident and Health	35.7			36.8			36.5			37.1			36.2			38.8			72.5			75.0
Property	19.0			18.9			19.0			19.2			19.4			18.9			37.9			38.3
Total Earned Premiums	150.7			143.7			151.5			153.1			152.8			155.3			294.4			308.1
Net Investment Income	53.5			50.4			71.3			49.2			48.0			50.2			103.9			98.2
Other Income	0.2			0.8			0.5			0.4			—			—			1.0			—
Total Life & Health Insurance	204.4			194.9			223.3			202.7			200.8			205.5			399.3			406.3
Total Segment Revenues	572.5			497.6			540.5			531.0			538.0			545.5			1,070.1			1,083.5
Net Realized Gains on Sales of Investments	34.0			3.4			21.0			8.0			3.5			6.6			37.4			10.1
Net Impairment Losses Recognized in Earnings	(2.2		)	(7.0		)	(6.5		)	(3.8		)	(4.1		)	(0.8		)	(9.2		)	(4.9		)
Other	4.9			5.2			4.7			4.6			5.1			3.3			10.1			8.4
Total Revenues	$	609.2		$	499.2		$	559.7		$	539.8		$	542.5		$	554.6		$	1,108.4		$	1,097.1

Page 10

Kemper Corporation Segment Operating Results (Dollars in Millions)  (Unaudited)
	Three Months Ended																		Six Months Ended
	Jun 30, 2015			Mar 31, 2015			Dec 31, 2014			Sep 30, 2014			Jun 30, 2014			Mar 31, 2014			Jun 30, 2015			Jun 30, 2014
Segment Operating Profit (Loss):
Property & Casualty Insurance	$	(8.4	)	$	18.0		$	36.0		$	(23.9	)	$	(4.3	)	$	19.3		$	9.6		$	15.0
Life & Health Insurance	22.2			24.8			51.2			31.4			24.7			34.6			47.0			59.3
Total Segment Operating Profit	13.8			42.8			87.2			7.5			20.4			53.9			56.6			74.3
Corporate and Other Operating Loss	(11.3		)	(12.3		)	(8.6		)	(7.7		)	(8.6		)	(7.8		)	(23.6		)	(16.4		)
Total Operating Profit (Loss)	2.5			30.5			78.6			(0.2		)	11.8			46.1			33.0			57.9
Net Realized Gains on Sales of Investments	34.0			3.4			21.0			8.0			3.5			6.6			37.4			10.1
Net Impairment Losses Recognized in Earnings	(2.2		)	(7.0		)	(6.5		)	(3.8		)	(4.1		)	(0.8		)	(9.2		)	(4.9		)
Loss from Early Extinguishment of Debt	—			(9.1		)	—			—			—			—			(9.1		)	—
Income from Continuing Operations before Income Taxes	$	34.3		$	17.8		$	93.1		$	4.0		$	11.2		$	51.9		$	52.1		$	63.1
Segment Net Operating Income (Loss):
Property & Casualty Insurance	$	(2.6	)	$	13.4		$	25.3		$	(13.6	)	$	(1.2	)	$	14.4		$	10.8		$	13.2
Life & Health Insurance	14.3			16.1			33.5			20.3			15.9			22.1			30.4			38.0
Total Segment Net Operating Income	11.7			29.5			58.8			6.7			14.7			36.5			41.2			51.2
Corporate and Other Net Operating Loss	(5.0		)	(7.7		)	(4.9		)	(4.6		)	(5.1		)	(5.0		)	(12.7		)	(10.1		)
Consolidated Operating Income	6.7			21.8			53.9			2.1			9.6			31.5			28.5			41.1
Net Income (Loss) From:
Net Realized Gains on Sales of Investments	22.1			2.2			13.6			5.2			2.4			4.2			24.3			6.6
Net Impairment Losses Recognized in Earnings	(1.4		)	(4.6		)	(4.2		)	(2.5		)	(2.7		)	(0.5		)	(6.0		)	(3.2		)
Loss from Early Extinguishment of Debt	—			(5.9		)	—			—			—			—			(5.9		)	—
Income from Continuing Operations	$	27.4		$	13.5		$	63.3		$	4.8		$	9.3		$	35.2		$	40.9		$	44.5

Page 11

Kemper Corporation Segment Operating Results (Dollars in Millions)  (Unaudited)
	Three Months Ended															Six Months Ended
	Jun 30, 2015		Mar 31, 2015			Dec 31, 2014			Sep 30, 2014		Jun 30, 2014			Mar 31, 2014		Jun 30, 2015			Jun 30, 2014
Earned Premiums by Product:
Personal Automobile	$	252.6	$	189.8		$	198.0		$	205.1	$	212.0		$	216.3	$	442.4		$	428.3
Homeowners	71.6		72.6			75.8			77.9		79.0			79.7		144.2			158.7
Other Personal Property and Casualty Insurance	30.7		30.6			31.2			31.8		32.3			32.1		61.3			64.4
Commercial Automobile	13.5		13.5			14.0			14.1		13.6			13.1		27.0			26.7
Life	96.0		88.0			96.0			96.8		97.2			97.6		184.0			194.8
Accident and Health	35.7		36.8			36.5			37.1		36.2			38.8		72.5			75.0
Total Earned Premiums	$	500.1	$	431.3		$	451.5		$	462.8	$	470.3		$	477.6	$	931.4		$	947.9
Net Investment Income by Segment:
Property & Casualty Insurance:
Equity Method Limited Liability Investments	$	3.0	$	0.2		$	(0.5	)	$	4.3	$	2.1		$	2.5	$	3.2		$	4.6
All Other Net Investment Income	15.6		14.6			17.6			14.2		17.4			15.1		30.2			32.5
Net Investment Income	18.6		14.8			17.1			18.5		19.5			17.6		33.4			37.1
Life & Health Insurance:
Equity Method Limited Liability Investments	0.9		(1.0		)	(0.1		)	0.1		(1.1		)	0.7		(0.1		)	(0.4		)
All Other Net Investment Income	52.6		51.4			71.4			49.1		49.1			49.5		104.0			98.6
Net Investment Income	53.5		50.4			71.3			49.2		48.0			50.2		103.9			98.2
Total Segment Net Investment Income	72.1		65.2			88.4			67.7		67.5			67.8		137.3			135.3
Unallocated Net Investment Income:
Equity Method Limited Liability Investments	0.3		0.1			(0.1		)	0.5		0.3			0.3		0.4			0.6
All Other Net Investment Income	4.3		5.3			4.8			4.1		4.8			3.0		9.6			7.8
Unallocated Net Investment Income	4.6		5.4			4.7			4.6		5.1			3.3		10.0			8.4
Net Investment Income	$	76.7	$	70.6		$	93.1		$	72.3	$	72.6		$	71.1	$	147.3		$	143.7

Page 12

Kemper Corporation Catastrophe Frequency and Severity (Dollars in Millions) (Unaudited)
	Six Months Ended Jun 30, 2015
	Property & Casualty Insurance Segment			Life & Health Insurance Segment			Consolidated
	Number of Events	Losses and LAE		Number of Events	Losses and LAE		Number of Events	Losses and LAE
Range of Losses and LAE Per Event:
Below $5	23	$	29.6	15	$	1.8	23	$	30.6
$5 - $10	2	16.1		—	—		2	16.9
$10 - $15	—	—		—	—		—	—
$15 - $20	—	—		—	—		—	—
$20 - $25	—	—		—	—		—	—
Greater Than $25	—	—		—	—		—	—
Total	25	$	45.7	15	$	1.8	25	$	47.5
	Six Months Ended Jun 30, 2014
	Property & Casualty Insurance Segment			Life & Health Insurance Segment			Consolidated
	Number of Events	Losses and LAE		Number of Events	Losses and LAE		Number of Events	Losses and LAE
Range of Losses and LAE Per Event:
Below $5	15	$	21.0	13	$	1.7	15	$	21.7
$5 - $10	3	18.5		—	—		3	19.2
$10 - $15	1	11.8		—	—		1	12.1
$15 - $20	—	—		—	—		—	—
$20 - $25	—	—		—	—		—	—
Greater Than $25	1	26.6		—	—		1	26.6
Total	20	$	77.9	13	$	1.7	20	$	79.6

Page 13

Kemper Corporation Property & Casualty Insurance Segment - Results of Operations and Selected Financial Information (Dollars in Millions) (Unaudited)
	Three Months Ended																			Six Months Ended
	Jun 30, 2015			Mar 31, 2015			Dec 31, 2014			Sep 30, 2014			Jun 30, 2014				Mar 31, 2014			Jun 30, 2015			Jun 30, 2014
Results of Operations
Net Premiums Written	$	348.2		$	279.7		$	269.1		$	307.0		$	308.7			$	304.3		$	627.9		$	613.0
Earned Premiums	349.4			287.6			300.0			309.7			317.5				322.3			637.0			639.8
Net Investment Income	18.6			14.8			17.1			18.5			19.5				17.6			33.4			37.1
Other Income	0.1			0.3			0.1			0.1			0.2				0.1			0.4			0.3
Total Revenues	368.1			302.7			317.2			328.3			337.2				340.0			670.8			677.2
Incurred Losses and LAE related to:
Current Year:
Non-catastrophe Losses and LAE	245.5			198.5			198.6			206.8			209.4				230.4			444.0			439.8
Catastrophe Losses and LAE	35.4			10.3			4.4			14.2			61.9				16.0			45.7			77.9
Prior Years:
Non-catastrophe Losses and LAE	(1.4		)	(5.0		)	(8.1		)	(3.3		)	(14.5		)		(12.7		)	(6.4		)	(27.2		)
Catastrophe Losses and LAE	(2.4		)	(2.2		)	(0.8		)	(7.2		)	(5.1		)		(2.7		)	(4.6		)	(7.8		)
Total Incurred Losses and LAE	277.1			201.6			194.1			210.5			251.7				231.0			478.7			482.7
Insurance Expenses, Excluding Write-off of Long-lived Assets	88.3			83.1			87.1			87.1			89.8			��	89.7			171.4			179.5
Write-off of Long-lived Asset2	11.1			—			—			54.6			—				—			11.1			—
Operating Profit (Loss)	(8.4		)	18.0			36.0			(23.9		)	(4.3		)		19.3			9.6			15.0
Income Tax Benefit (Expense)	5.8			(4.6		)	(10.7		)	10.3			3.1				(4.9		)	1.2			(1.8		)
Segment Net Operating Income (Loss)	$	(2.6	)	$	13.4		$	25.3		$	(13.6	)	$	(1.2	)		$	14.4		$	10.8		$	13.2
Ratios Based On Earned Premiums
Current Year Non-catastrophe Losses and LAE Ratio	70.3		%	69.0		%	66.2		%	66.8		%	66.0		%		71.4		%	69.6		%	68.7		%
Current Year Catastrophe Losses and LAE Ratio	10.1			3.6			1.5			4.6			19.5				5.0			7.2			12.2
Prior Years Non-catastrophe Losses and LAE Ratio	(0.4		)	(1.7		)	(2.7		)	(1.1		)	(4.6		)		(3.9		)	(1.0		)	(4.3		)
Prior Years Catastrophe Losses and LAE Ratio	(0.7		)	(0.8		)	(0.3		)	(2.3		)	(1.6		)		(0.8		)	(0.7		)	(1.2		)
Total Incurred Loss and LAE Ratio	79.3			70.1			64.7			68.0			79.3				71.7			75.1			75.4
Insurance Expense Ratio, Excluding Write-off of Long-lived Asset	25.3			28.9			29.0			28.1			28.3				27.8			26.9			28.1
Impact on Ratio from Write-off of Long-lived Asset	3.2			—			—			17.6			—				—			1.7			—
Combined Ratio	107.8		%	99.0		%	93.7		%	113.7		%	107.6		%		99.5		%	103.7		%	103.5		%
Underlying Combined Ratio 1
Current Year Non-catastrophe Losses and LAE Ratio	70.3		%	69.0		%	66.2		%	66.8		%	66.0		%		71.4		%	69.6		%	68.7		%
Insurance Expense Ratio, Excluding write-off of Long-lived Asset	25.3			28.9			29.0			28.1			28.3				27.8			26.9			28.1
Impact on Ratio from Write-off of Long-lived Asset	3.2			—			—			17.6			—				—			1.7			—
Underlying Combined Ratio	98.8		%	97.9		%	95.2		%	112.5		%	94.3		%		99.2		%	98.2		%	96.8		%
Non-GAAP Measure Reconciliation
Underlying Combined Ratio	98.8		%	97.9		%	95.2		%	112.5		%	94.3		%		99.2		%	98.2		%	96.8		%
Current Year Catastrophe Losses and LAE Ratio	10.1			3.6			1.5			4.6			19.5				5.0			7.2			12.2
Prior Years Non-catastrophe Losses and LAE Ratio	(0.4		)	(1.7		)	(2.7		)	(1.1		)	(4.6		)		(3.9		)	(1.0		)	(4.3		)
Prior Years Catastrophe Losses and LAE Ratio	(0.7		)	(0.8		)	(0.3		)	(2.3		)	(1.6		)		(0.8		)	(0.7		)	(1.2		)
Combined Ratio as Reported	107.8		%	99.0		%	93.7		%	113.7		%	107.6		%		99.5		%	103.7		%	103.5		%
1 Underlying Combined Ratio is a non-GAAP measure, which is computed as the difference between three operating ratios: the combined ratio, the effect of catastrophes (excluding development of prior-year catastrophes) on the combined ratio and the effect of prior-year reserve development at the reporting date (including development on prior-year catastrophes) on the combined ratio.
2 The Write-off of Long-lived Assets has not been allocated to product lines. Accordingly, Results of Operations and Selected Financial Information presented on pages 16 to 22 of this Investor Supplement exclude the write-off.

Page 14

Kemper Corporation Property & Casualty Insurance Segment - Results of Operations and Selected Financial Information (continued) (Dollars in Millions) (Unaudited)
	Jun 30, 2015		Mar 31, 2015		Dec 31, 2014		Sep 30, 2014		Jun 30, 2014		Mar 31, 2014
Insurance Reserves:
Automobile	$	631.8	$	483.4	$	501.4	$	524.2	$	545.4	$	568.9
Homeowners	119.4		108.1		102.4		118.8		128.3		114.4
Other Personal	50.3		48.5		47.3		47.5		47.2		47.9
Insurance Reserves	$	801.5	$	640.0	$	651.1	$	690.5	$	720.9	$	731.2
Insurance Reserves:
Loss Reserves:
Case	$	540.5	$	426.8	$	423.6	$	447.6	$	460.8	$	468.1
Incurred but Not Reported	142.8		124.1		135.8		148.9		162.5		164.2
Total Loss Reserves	683.3		550.9		559.4		596.5		623.3		632.3
LAE Reserves	118.2		89.1		91.7		94.0		97.6		98.9
Insurance Reserves	$	801.5	$	640.0	$	651.1	$	690.5	$	720.9	$	731.2

Page 15

Kemper Corporation Property & Casualty Insurance Segment Standard Personal Automobile Insurance - Results of Operations and Selected Financial Information (Dollars in Millions) (Unaudited)
	Three Months Ended																		Six Months Ended
	Jun 30, 2015			Mar 31, 2015			Dec 31, 2014			Sep 30, 2014			Jun 30, 2014			Mar 31, 2014			Jun 30, 2015			Jun 30, 2014
Results of Operations
Net Premiums Written	$	112.2		$	106.5		$	110.6		$	123.9		$	126.9		$	124.8		$	218.7		$	251.7
Earned Premiums	$	113.4		$	115.9		$	122.8		$	129.2		$	134.6		$	139.3		$	229.3		$	273.9
Net Investment Income	6.7			5.6			8.3			8.8			9.6			8.9			12.3			18.5
Other Income	—			0.2			—			—			—			—			0.2			—
Total Revenues	120.1			121.7			131.1			138.0			144.2			148.2			241.8			292.4
Incurred Losses and LAE related to:
Current Year:
Non-catastrophe Losses and LAE	78.1			81.8			90.8			91.3			93.1			102.2			159.9			195.3
Catastrophe Losses and LAE	2.3			0.2			0.1			1.2			6.8			0.8			2.5			7.6
Prior Years:
Non-catastrophe Losses and LAE	(4.0		)	(7.2		)	(6.1		)	(4.0		)	(10.3		)	(11.1		)	(11.2		)	(21.4		)
Catastrophe Losses and LAE	(0.1		)	(0.1		)	—			(0.1		)	—			(0.2		)	(0.2		)	(0.2		)
Total Incurred Losses and LAE	76.3			74.7			84.8			88.4			89.6			91.7			151.0			181.3
Insurance Expenses	33.1			34.4			36.4			37.0			39.3			38.8			67.5			78.1
Operating Profit	10.7			12.6			9.9			12.6			15.3			17.7			23.3			33.0
Income Tax Expense	(2.9		)	(3.7		)	(2.6		)	(3.5		)	(4.6		)	(5.2		)	(6.6		)	(9.8		)
Segment Net Operating Income	$	7.8		$	8.9		$	7.3		$	9.1		$	10.7		$	12.5		$	16.7		$	23.2
Ratios Based On Earned Premiums
Current Year Non-catastrophe Losses and LAE Ratio	68.9		%	70.6		%	74.0		%	70.7		%	69.2		%	73.3		%	69.8		%	71.3		%
Current Year Catastrophe Losses and LAE Ratio	2.0			0.2			0.1			0.9			5.1			0.6			1.1			2.8
Prior Years Non-catastrophe Losses and LAE Ratio	(3.5		)	(6.2		)	(5.0		)	(3.1		)	(7.7		)	(8.0		)	(4.9		)	(7.8		)
Prior Years Catastrophe Losses and LAE Ratio	(0.1		)	(0.1		)	—			(0.1		)	—			(0.1		)	(0.1		)	(0.1		)
Total Incurred Loss and LAE Ratio	67.3			64.5			69.1			68.4			66.6			65.8			65.9			66.2
Insurance Expense Ratio	29.2			29.7			29.6			28.6			29.2			27.9			29.4			28.5
Combined Ratio	96.5		%	94.2		%	98.7		%	97.0		%	95.8		%	93.7		%	95.3		%	94.7		%
Underlying Combined Ratio 1
Current Year Non-catastrophe Losses and LAE Ratio	68.9		%	70.6		%	74.0		%	70.7		%	69.2		%	73.3		%	69.8		%	71.3		%
Insurance Expense Ratio	29.2			29.7			29.6			28.6			29.2			27.9			29.4			28.5
Underlying Combined Ratio	98.1		%	100.3		%	103.6		%	99.3		%	98.4		%	101.2		%	99.2		%	99.8		%
Non-GAAP Measure Reconciliation
Underlying Combined Ratio	98.1		%	100.3		%	103.6		%	99.3		%	98.4		%	101.2		%	99.2		%	99.8		%
Current Year Catastrophe Losses and LAE Ratio	2.0			0.2			0.1			0.9			5.1			0.6			1.1			2.8
Prior Years Non-catastrophe Losses and LAE Ratio	(3.5		)	(6.2		)	(5.0		)	(3.1		)	(7.7		)	(8.0		)	(4.9		)	(7.8		)
Prior Years Catastrophe Losses and LAE Ratio	(0.1		)	(0.1		)	—			(0.1		)	—			(0.1		)	(0.1		)	(0.1		)
Combined Ratio as Reported	96.5		%	94.2		%	98.7		%	97.0		%	95.8		%	93.7		%	95.3		%	94.7		%
1 Underlying Combined Ratio is a non-GAAP measure, which is computed as the difference between three operating ratios: the combined ratio, the effect of catastrophes (excluding development of prior-year catastrophes) on the combined ratio and the effect of prior-year reserve development at the reporting date (including development on prior-year catastrophes) on the combined ratio.

Page 16

Kemper Corporation Property & Casualty Insurance Segment Non-standard Personal Automobile Insurance - Results of Operations and Selected Financial Information (Dollars in Millions) (Unaudited)
	Three Months Ended																		Six Months Ended
	Jun 30, 2015			Mar 31, 2015			Dec 31, 2014			Sep 30, 2014			Jun 30, 2014			Mar 31, 2014			Jun 30, 2015			Jun 30, 2014
Results of Operations
Net Premiums Written	$	135.3		$	85.6		$	68.5		$	78.2		$	73.2		$	82.9		$	220.9		$	156.1
Earned Premiums	$	139.2		$	73.9		$	75.2		$	75.9		$	77.4		$	77.0		$	213.1		$	154.4
Net Investment Income	3.8			2.6			2.6			3.1			3.2			2.9			6.4			6.1
Other Income	0.1			0.1			0.1			0.1			0.1			0.1			0.2			0.2
Total Revenues	143.1			76.6			77.9			79.1			80.7			80.0			219.7			160.7
Incurred Losses and LAE related to:
Current Year:
Non-catastrophe Losses and LAE	115.9			59.3			59.2			58.5			60.0			60.9			175.2			120.9
Catastrophe Losses and LAE	3.0			0.2			0.3			0.4			3.0			0.1			3.2			3.1
Prior Years:
Non-catastrophe Losses and LAE	2.9			2.2			1.4			0.9			(1.6		)	(0.2		)	5.1			(1.8		)
Catastrophe Losses and LAE	(0.1		)	—			—			(0.2		)	(0.1		)	—			(0.1		)	(0.1		)
Total Incurred Losses and LAE	121.7			61.7			60.9			59.6			61.3			60.8			183.4			122.1
Insurance Expenses	25.5			18.5			18.8			18.8			18.3			18.4			44.0			36.7
Operating Profit (Loss)	(4.1		)	(3.6		)	(1.8		)	0.7			1.1			0.8			(7.7		)	1.9
Income Tax Benefit (Expense)	2.5			1.5			0.9			0.2			(0.1		)	—			4.0			(0.1		)
Segment Net Operating Income (Loss)	$	(1.6	)	$	(2.1	)	$	(0.9	)	$	0.9		$	1.0		$	0.8		$	(3.7	)	$	1.8
Ratios Based On Earned Premiums
Current Year Non-catastrophe Losses and LAE Ratio	83.2		%	80.2		%	78.7		%	77.1		%	77.5		%	79.2		%	82.2		%	78.4		%
Current Year Catastrophe Losses and LAE Ratio	2.2			0.3			0.4			0.5			3.9			0.1			1.5			2.0
Prior Years Non-catastrophe Losses and LAE Ratio	2.1			3.0			1.9			1.2			(2.1		)	(0.3		)	2.4			(1.2		)
Prior Years Catastrophe Losses and LAE Ratio	(0.1		)	—			—			(0.3		)	(0.1		)	—			—			(0.1		)
Total Incurred Loss and LAE Ratio	87.4			83.5			81.0			78.5			79.2			79.0			86.1			79.1
Insurance Expense Ratio	18.3			25.0			25.0			24.8			23.6			23.9			20.6			23.8
Combined Ratio	105.7		%	108.5		%	106.0		%	103.3		%	102.8		%	102.9		%	106.7		%	102.9		%
Underlying Combined Ratio 1
Current Year Non-catastrophe Losses and LAE Ratio	83.2		%	80.2		%	78.7		%	77.1		%	77.5		%	79.2		%	82.2		%	78.4		%
Insurance Expense Ratio	18.3			25.0			25.0			24.8			23.6			23.9			20.6			23.8
Underlying Combined Ratio	101.5		%	105.2		%	103.7		%	101.9		%	101.1		%	103.1		%	102.8		%	102.2		%
Non-GAAP Measure Reconciliation
Underlying Combined Ratio	101.5		%	105.2		%	103.7		%	101.9		%	101.1		%	103.1		%	102.8		%	102.2		%
Current Year Catastrophe Losses and LAE Ratio	2.2			0.3			0.4			0.5			3.9			0.1			1.5			2.0
Prior Years Non-catastrophe Losses and LAE Ratio	2.1			3.0			1.9			1.2			(2.1		)	(0.3		)	2.4			(1.2		)
Prior Years Catastrophe Losses and LAE Ratio	(0.1		)	—			—			(0.3		)	(0.1		)	—			—			(0.1		)
Combined Ratio as Reported	105.7		%	108.5		%	106.0		%	103.3		%	102.8		%	102.9		%	106.7		%	102.9		%
1 Underlying Combined Ratio is a non-GAAP measure, which is computed as the difference between three operating ratios: the combined ratio, the effect of catastrophes (excluding development of prior-year catastrophes) on the combined ratio and the effect of prior-year reserve development at the reporting date (including development on prior-year catastrophes) on the combined ratio.

Page 17

Kemper Corporation Property & Casualty Insurance Segment Total Personal Automobile Insurance - Results of Operations and Selected Financial Information (Dollars in Millions) (Unaudited)
	Three Months Ended																		Six Months Ended
	Jun 30, 2015			Mar 31, 2015			Dec 31, 2014			Sep 30, 2014			Jun 30, 2014			Mar 31, 2014			Jun 30, 2015			Jun 30, 2014
Results of Operations
Net Premiums Written	$	247.5		$	192.1		$	179.1		$	202.1		$	200.1		$	207.7		$	439.6		$	407.8
Earned Premiums	$	252.6		$	189.8		$	198.0		$	205.1		$	212.0		$	216.3		$	442.4		$	428.3
Net Investment Income	10.5			8.2			10.9			11.9			12.8			11.8			18.7			24.6
Other Income	0.1			0.3			0.1			0.1			0.1			0.1			0.4			0.2
Total Revenues	263.2			198.3			209.0			217.1			224.9			228.2			461.5			453.1
Incurred Losses and LAE related to:
Current Year:
Non-catastrophe Losses and LAE	194.0			141.1			150.0			149.8			153.1			163.1			335.1			316.2
Catastrophe Losses and LAE	5.3			0.4			0.4			1.6			9.8			0.9			5.7			10.7
Prior Years:
Non-catastrophe Losses and LAE	(1.1		)	(5.0		)	(4.7		)	(3.1		)	(11.9		)	(11.3		)	(6.1		)	(23.2		)
Catastrophe Losses and LAE	(0.2		)	(0.1		)	—			(0.3		)	(0.1		)	(0.2		)	(0.3		)	(0.3		)
Total Incurred Losses and LAE	198.0			136.4			145.7			148.0			150.9			152.5			334.4			303.4
Insurance Expenses	58.6			52.9			55.2			55.8			57.6			57.2			111.5			114.8
Operating Profit	6.6			9.0			8.1			13.3			16.4			18.5			15.6			34.9
Income Tax Expense	(0.4		)	(2.2		)	(1.7		)	(3.3		)	(4.7		)	(5.2		)	(2.6		)	(9.9		)
Segment Net Operating Income	$	6.2		$	6.8		$	6.4		$	10.0		$	11.7		$	13.3		$	13.0		$	25.0
Ratios Based On Earned Premiums
Current Year Non-catastrophe Losses and LAE Ratio	76.8		%	74.4		%	75.8		%	73.0		%	72.2		%	75.4		%	75.8		%	73.8		%
Current Year Catastrophe Losses and LAE Ratio	2.1			0.2			0.2			0.8			4.6			0.4			1.3			2.5
Prior Years Non-catastrophe Losses and LAE Ratio	(0.4		)	(2.6		)	(2.4		)	(1.5		)	(5.6		)	(5.2		)	(1.4		)	(5.4		)
Prior Years Catastrophe Losses and LAE Ratio	(0.1		)	(0.1		)	—			(0.1		)	—			(0.1		)	(0.1		)	(0.1		)
Total Incurred Loss and LAE Ratio	78.4			71.9			73.6			72.2			71.2			70.5			75.6			70.8
Insurance Expense Ratio	23.2			27.9			27.9			27.2			27.2			26.4			25.2			26.8
Combined Ratio	101.6		%	99.8		%	101.5		%	99.4		%	98.4		%	96.9		%	100.8		%	97.6		%
Underlying Combined Ratio 1
Current Year Non-catastrophe Losses and LAE Ratio	76.8		%	74.4		%	75.8		%	73.0		%	72.2		%	75.4		%	75.8		%	73.8		%
Insurance Expense Ratio	23.2			27.9			27.9			27.2			27.2			26.4			25.2			26.8
Underlying Combined Ratio	100.0		%	102.3		%	103.7		%	100.2		%	99.4		%	101.8		%	101.0		%	100.6		%
Non-GAAP Measure Reconciliation
Underlying Combined Ratio	100.0		%	102.3		%	103.7		%	100.2		%	99.4		%	101.8		%	101.0		%	100.6		%
Current Year Catastrophe Losses and LAE Ratio	2.1			0.2			0.2			0.8			4.6			0.4			1.3			2.5
Prior Years Non-catastrophe Losses and LAE Ratio	(0.4		)	(2.6		)	(2.4		)	(1.5		)	(5.6		)	(5.2		)	(1.4		)	(5.4		)
Prior Years Catastrophe Losses and LAE Ratio	(0.1		)	(0.1		)	—			(0.1		)	—			(0.1		)	(0.1		)	(0.1		)
Combined Ratio as Reported	101.6		%	99.8		%	101.5		%	99.4		%	98.4		%	96.9		%	100.8		%	97.6		%
1 Underlying Combined Ratio is a non-GAAP measure, which is computed as the difference between three operating ratios: the combined ratio, the effect of catastrophes (excluding development of prior-year catastrophes) on the combined ratio and the effect of prior-year reserve development at the reporting date (including development on prior-year catastrophes) on the combined ratio.

Page 18

Kemper Corporation Property & Casualty Insurance Segment Commercial Automobile Insurance - Results of Operations and Selected Financial Information (Dollars in Millions) (Unaudited)
	Three Months Ended																		Six Months Ended
	Jun 30, 2015			Mar 31, 2015			Dec 31, 2014			Sep 30, 2014			Jun 30, 2014			Mar 31, 2014			Jun 30, 2015			Jun 30, 2014
Results of Operations
Net Premiums Written	$	14.5		$	14.0		$	12.3		$	13.7		$	15.3		$	14.3		$	28.5		$	29.6
Earned Premiums	$	13.5		$	13.5		$	14.0		$	14.1		$	13.6		$	13.1		$	27.0		$	26.7
Net Investment Income	1.1			1.0			0.9			0.9			1.0			1.0			2.1			2.0
Other Income	—			—			—			—			—			—			—			—
Total Revenues	14.6			14.5			14.9			15.0			14.6			14.1			29.1			28.7
Incurred Losses and LAE related to:
Current Year:
Non-catastrophe Losses and LAE	10.0			10.8			10.4			11.5			11.6			11.1			20.8			22.7
Catastrophe Losses and LAE	0.2			—			—			0.1			0.1			—			0.2			0.1
Prior Years:
Non-catastrophe Losses and LAE	(0.6		)	(0.2		)	(1.9		)	(0.6		)	0.4			(0.5		)	(0.8		)	(0.1		)
Catastrophe Losses and LAE	—			—			—			—			—			—			—			—
Total Incurred Losses and LAE	9.6			10.6			8.5			11.0			12.1			10.6			20.2			22.7
Insurance Expenses	3.6			3.8			4.3			3.6			3.5			3.5			7.4			7.0
Operating Profit (Loss)	1.4			0.1			2.1			0.4			(1.0		)	—			1.5			(1.0		)
Income Tax Benefit (Expense)	(0.4		)	0.1			(0.6		)	(0.1		)	0.4			0.1			(0.3		)	0.5
Segment Net Operating Income (Loss)	$	1.0		$	0.2		$	1.5		$	0.3		$	(0.6	)	$	0.1		$	1.2		$	(0.5	)
Ratios Based On Earned Premiums
Current Year Non-catastrophe Losses and LAE Ratio	74.0		%	80.0		%	74.3		%	81.6		%	85.4		%	84.7		%	77.1		%	85.0		%
Current Year Catastrophe Losses and LAE Ratio	1.5			—			—			0.7			0.7			—			0.7			0.4
Prior Years Non-catastrophe Losses and LAE Ratio	(4.4		)	(1.5		)	(13.6		)	(4.3		)	2.9			(3.8		)	(3.0		)	(0.4		)
Prior Years Catastrophe Losses and LAE Ratio	—			—			—			—			—			—			—			—
Total Incurred Loss and LAE Ratio	71.1			78.5			60.7			78.0			89.0			80.9			74.8			85.0
Insurance Expense Ratio	26.7			28.1			30.7			25.5			25.7			26.7			27.4			26.2
Combined Ratio	97.8		%	106.6		%	91.4		%	103.5		%	114.7		%	107.6		%	102.2		%	111.2		%
Underlying Combined Ratio 1
Current Year Non-catastrophe Losses and LAE Ratio	74.0		%	80.0		%	74.3		%	81.6		%	85.4		%	84.7		%	77.1		%	85.0		%
Insurance Expense Ratio	26.7			28.1			30.7			25.5			25.7			26.7			27.4			26.2
Underlying Combined Ratio	100.7		%	108.1		%	105.0		%	107.1		%	111.1		%	111.4		%	104.5		%	111.2		%
Non-GAAP Measure Reconciliation
Underlying Combined Ratio	100.7		%	108.1		%	105.0		%	107.1		%	111.1		%	111.4		%	104.5		%	111.2		%
Current Year Catastrophe Losses and LAE Ratio	1.5			—			—			0.7			0.7			—			0.7			0.4
Prior Years Non-catastrophe Losses and LAE Ratio	(4.4		)	(1.5		)	(13.6		)	(4.3		)	2.9			(3.8		)	(3.0		)	(0.4		)
Prior Years Catastrophe Losses and LAE Ratio	—			—			—			—			—			—			—			—
Combined Ratio as Reported	97.8		%	106.6		%	91.4		%	103.5		%	114.7		%	107.6		%	102.2		%	111.2		%
1 Underlying Combined Ratio is a non-GAAP measure, which is computed as the difference between three operating ratios: the combined ratio, the effect of catastrophes (excluding development of prior-year catastrophes) on the combined ratio and the effect of prior-year reserve development at the reporting date (including development on prior-year catastrophes) on the combined ratio.

Page 19

Kemper Corporation Property & Casualty Insurance Segment Total Automobile Insurance - Results of Operations and Selected Financial Information (Dollars in Millions) (Unaudited)
	Three Months Ended																		Six Months Ended
	Jun 30, 2015			Mar 31, 2015			Dec 31, 2014			Sep 30, 2014			Jun 30, 2014			Mar 31, 2014			Jun 30, 2015			Jun 30, 2014
Results of Operations
Net Premiums Written	$	262.0		$	206.1		$	191.4		$	215.8		$	215.4		$	222.0		$	468.1		$	437.4
Earned Premiums	$	266.1		$	203.3		$	212.0		$	219.2		$	225.6		$	229.4		$	469.4		$	455.0
Net Investment Income	11.6			9.2			11.8			12.8			13.8			12.8			20.8			26.6
Other Income	0.1			0.3			0.1			0.1			0.1			0.1			0.4			0.2
Total Revenues	277.8			212.8			223.9			232.1			239.5			242.3			490.6			481.8
Incurred Losses and LAE related to:
Current Year:
Non-catastrophe Losses and LAE	204.0			151.9			160.4			161.3			164.7			174.2			355.9			338.9
Catastrophe Losses and LAE	5.5			0.4			0.4			1.7			9.9			0.9			5.9			10.8
Prior Years:
Non-catastrophe Losses and LAE	(1.7		)	(5.2		)	(6.6		)	(3.7		)	(11.5		)	(11.8		)	(6.9		)	(23.3		)
Catastrophe Losses and LAE	(0.2		)	(0.1		)	—			(0.3		)	(0.1		)	(0.2		)	(0.3		)	(0.3		)
Total Incurred Losses and LAE	207.6			147.0			154.2			159.0			163.0			163.1			354.6			326.1
Insurance Expenses	62.2			56.7			59.5			59.4			61.1			60.7			118.9			121.8
Operating Profit	8.0			9.1			10.2			13.7			15.4			18.5			17.1			33.9
Income Tax Expense	(0.8		)	(2.1		)	(2.3		)	(3.4		)	(4.3		)	(5.1		)	(2.9		)	(9.4		)
Segment Net Operating Income	$	7.2		$	7.0		$	7.9		$	10.3		$	11.1		$	13.4		$	14.2		$	24.5
Ratios Based On Earned Premiums
Current Year Non-catastrophe Losses and LAE Ratio	76.6		%	74.7		%	75.6		%	73.5		%	73.0		%	75.9		%	75.8		%	74.5		%
Current Year Catastrophe Losses and LAE Ratio	2.1			0.2			0.2			0.8			4.4			0.4			1.3			2.4
Prior Years Non-catastrophe Losses and LAE Ratio	(0.6		)	(2.6		)	(3.1		)	(1.7		)	(5.1		)	(5.1		)	(1.5		)	(5.1		)
Prior Years Catastrophe Losses and LAE Ratio	(0.1		)	—			—			(0.1		)	—			(0.1		)	(0.1		)	(0.1		)
Total Incurred Loss and LAE Ratio	78.0			72.3			72.7			72.5			72.3			71.1			75.5			71.7
Insurance Expense Ratio	23.4			27.9			28.1			27.1			27.1			26.5			25.3			26.8
Combined Ratio	101.4		%	100.2		%	100.8		%	99.6		%	99.4		%	97.6		%	100.8		%	98.5		%
Underlying Combined Ratio 1
Current Year Non-catastrophe Losses and LAE Ratio	76.6		%	74.7		%	75.6		%	73.5		%	73.0		%	75.9		%	75.8		%	74.5		%
Insurance Expense Ratio	23.4			27.9			28.1			27.1			27.1			26.5			25.3			26.8
Underlying Combined Ratio	100.0		%	102.6		%	103.7		%	100.6		%	100.1		%	102.4		%	101.1		%	101.3		%
Non-GAAP Measure Reconciliation
Underlying Combined Ratio	100.0		%	102.6		%	103.7		%	100.6		%	100.1		%	102.4		%	101.1		%	101.3		%
Current Year Catastrophe Losses and LAE Ratio	2.1			0.2			0.2			0.8			4.4			0.4			1.3			2.4
Prior Years Non-catastrophe Losses and LAE Ratio	(0.6		)	(2.6		)	(3.1		)	(1.7		)	(5.1		)	(5.1		)	(1.5		)	(5.1		)
Prior Years Catastrophe Losses and LAE Ratio	(0.1		)	—			—			(0.1		)	—			(0.1		)	(0.1		)	(0.1		)
Combined Ratio as Reported	101.4		%	100.2		%	100.8		%	99.6		%	99.4		%	97.6		%	100.8		%	98.5		%
1 Underlying Combined Ratio is a non-GAAP measure, which is computed as the difference between three operating ratios: the combined ratio, the effect of catastrophes (excluding development of prior-year catastrophes) on the combined ratio and the effect of prior-year reserve development at the reporting date (including development on prior-year catastrophes) on the combined ratio.

Page 20

Kemper Corporation Property & Casualty Insurance Segment Homeowners Insurance - Results of Operations and Selected Financial Information (Dollars in Millions) (Unaudited)
	Three Months Ended																		Six Months Ended
	Jun 30, 2015			Mar 31, 2015			Dec 31, 2014			Sep 30, 2014			Jun 30, 2014			Mar 31, 2014			Jun 30, 2015			Jun 30, 2014
Results of Operations
Net Premiums Written	$	74.2		$	63.1		$	66.5		$	78.6		$	80.5		$	70.9		$	137.3		$	151.4
Earned Premiums	$	71.6		$	72.6		$	75.8		$	77.9		$	79.0		$	79.7		$	144.2		$	158.7
Net Investment Income	5.9			4.8			4.3			4.6			4.6			3.9			10.7			8.5
Other Income	—			—			—			—			0.1			—			—			0.1
Total Revenues	77.5			77.4			80.1			82.5			83.7			83.6			154.9			167.3
Incurred Losses and LAE related to:
Current Year:
Non-catastrophe Losses and LAE	36.5			39.8			31.4			38.1			37.9			49.1			76.3			87.0
Catastrophe Losses and LAE	28.4			9.6			3.8			12.3			50.4			14.3			38.0			64.7
Prior Years:
Non-catastrophe Losses and LAE	0.1			(0.4		)	(0.7		)	1.5			(1.6		)	(0.7		)	(0.3		)	(2.3		)
Catastrophe Losses and LAE	(2.1		)	(2.2		)	(0.8		)	(6.0		)	(4.4		)	(2.1		)	(4.3		)	(6.5		)
Total Incurred Losses and LAE	62.9			46.8			33.7			45.9			82.3			60.6			109.7			142.9
Insurance Expenses	22.9			23.0			24.0			24.1			25.1			25.4			45.9			50.5
Operating Profit (Loss)	(8.3		)	7.6			22.4			12.5			(23.7		)	(2.4		)	(0.7		)	(26.1		)
Income Tax Benefit (Expense)	3.6			(2.1		)	(7.3		)	(3.9		)	8.7			1.2			1.5			9.9
Segment Net Operating Income (Loss)	$	(4.7	)	$	5.5		$	15.1		$	8.6		$	(15.0	)	$	(1.2	)	$	0.8		$	(16.2	)
Ratios Based On Earned Premiums
Current Year Non-catastrophe Losses and LAE Ratio	50.9		%	54.9		%	41.5		%	48.9		%	48.0		%	61.6		%	52.9		%	54.7		%
Current Year Catastrophe Losses and LAE Ratio	39.7			13.2			5.0			15.8			63.8			17.9			26.4			40.8
Prior Years Non-catastrophe Losses and LAE Ratio	0.1			(0.6		)	(0.9		)	1.9			(2.0		)	(0.9		)	(0.2		)	(1.4		)
Prior Years Catastrophe Losses and LAE Ratio	(2.9		)	(3.0		)	(1.1		)	(7.7		)	(5.6		)	(2.6		)	(3.0		)	(4.1		)
Total Incurred Loss and LAE Ratio	87.8			64.5			44.5			58.9			104.2			76.0			76.1			90.0
Insurance Expense Ratio	32.0			31.7			31.7			30.9			31.8			31.9			31.8			31.8
Combined Ratio	119.8		%	96.2		%	76.2		%	89.8		%	136.0		%	107.9		%	107.9		%	121.8		%
Underlying Combined Ratio 1
Current Year Non-catastrophe Losses and LAE Ratio	50.9		%	54.9		%	41.5		%	48.9		%	48.0		%	61.6		%	52.9		%	54.7		%
Insurance Expense Ratio	32.0			31.7			31.7			30.9			31.8			31.9			31.8			31.8
Underlying Combined Ratio	82.9		%	86.6		%	73.2		%	79.8		%	79.8		%	93.5		%	84.7		%	86.5		%
Non-GAAP Measure Reconciliation
Underlying Combined Ratio	82.9		%	86.6		%	73.2		%	79.8		%	79.8		%	93.5		%	84.7		%	86.5		%
Current Year Catastrophe Losses and LAE Ratio	39.7			13.2			5.0			15.8			63.8			17.9			26.4			40.8
Prior Years Non-catastrophe Losses and LAE Ratio	0.1			(0.6		)	(0.9		)	1.9			(2.0		)	(0.9		)	(0.2		)	(1.4		)
Prior Years Catastrophe Losses and LAE Ratio	(2.9		)	(3.0		)	(1.1		)	(7.7		)	(5.6		)	(2.6		)	(3.0		)	(4.1		)
Combined Ratio as Reported	119.8		%	96.2		%	76.2		%	89.8		%	136.0		%	107.9		%	107.9		%	121.8		%
1 Underlying Combined Ratio is a non-GAAP measure, which is computed as the difference between three operating ratios: the combined ratio, the effect of catastrophes (excluding development of prior-year catastrophes) on the combined ratio and the effect of prior-year reserve development at the reporting date (including development on prior-year catastrophes) on the combined ratio.

Page 21

Kemper Corporation Property & Casualty Insurance Segment Other Personal Lines - Results of Operations and Selected Financial Information (Dollars in Millions) (Unaudited)
	Three Months Ended																		Six Months Ended
	Jun 30, 2015			Mar 31, 2015			Dec 31, 2014			Sep 30, 2014			Jun 30, 2014			Mar 31, 2014			Jun 30, 2015			Jun 30, 2014
Results of Operations
Net Premiums Written	$	12.0		$	10.5		$	11.2		$	12.6		$	12.8		$	11.4		$	22.5		$	24.2
Earned Premiums	$	11.7		$	11.7		$	12.2		$	12.6		$	12.9		$	13.2		$	23.4		$	26.1
Net Investment Income	1.1			0.8			1.0			1.1			1.1			0.9			1.9			2.0
Other Income	—			—			—			—			—			—			—			—
Total Revenues	12.8			12.5			13.2			13.7			14.0			14.1			25.3			28.1
Incurred Losses and LAE related to:
Current Year:
Non-catastrophe Losses and LAE	5.0			6.8			6.8			7.4			6.8			7.1			11.8			13.9
Catastrophe Losses and LAE	1.5			0.3			0.2			0.2			1.6			0.8			1.8			2.4
Prior Years:
Non-catastrophe Losses and LAE	0.2			0.6			(0.8		)	(1.1		)	(1.4		)	(0.2		)	0.8			(1.6		)
Catastrophe Losses and LAE	(0.1		)	0.1			—			(0.9		)	(0.6		)	(0.4		)	—			(1.0		)
Total Incurred Losses and LAE	6.6			7.8			6.2			5.6			6.4			7.3			14.4			13.7
Insurance Expenses	3.2			3.4			3.6			3.6			3.6			3.6			6.6			7.2
Operating Profit	3.0			1.3			3.4			4.5			4.0			3.2			4.3			7.2
Income Tax Expense	(0.9		)	(0.4		)	(1.1		)	(1.5		)	(1.3		)	(1.0		)	(1.3		)	(2.3		)
Segment Net Operating Income	$	2.1		$	0.9		$	2.3		$	3.0		$	2.7		$	2.2		$	3.0		$	4.9
Ratios Based On Earned Premiums
Current Year Non-catastrophe Losses and LAE Ratio	42.8		%	58.1		%	55.8		%	58.6		%	52.8		%	53.7		%	50.4		%	53.2		%
Current Year Catastrophe Losses and LAE Ratio	12.8			2.6			1.6			1.6			12.4			6.1			7.7			9.2
Prior Years Non-catastrophe Losses and LAE Ratio	1.7			5.1			(6.6		)	(8.7		)	(10.9		)	(1.5		)	3.4			(6.1		)
Prior Years Catastrophe Losses and LAE Ratio	(0.9		)	0.9			—			(7.1		)	(4.7		)	(3.0		)	—			(3.8		)
Total Incurred Loss and LAE Ratio	56.4			66.7			50.8			44.4			49.6			55.3			61.5			52.5
Insurance Expense Ratio	27.4			29.1			29.5			28.6			27.9			27.3			28.2			27.6
Combined Ratio	83.8		%	95.8		%	80.3		%	73.0		%	77.5		%	82.6		%	89.7		%	80.1		%
Underlying Combined Ratio 1
Current Year Non-catastrophe Losses and LAE Ratio	42.8		%	58.1		%	55.8		%	58.6		%	52.8		%	53.7		%	50.4		%	53.2		%
Insurance Expense Ratio	27.4			29.1			29.5			28.6			27.9			27.3			28.2			27.6
Underlying Combined Ratio	70.2		%	87.2		%	85.3		%	87.2		%	80.7		%	81.0		%	78.6		%	80.8		%
Non-GAAP Measure Reconciliation
Underlying Combined Ratio	70.2		%	87.2		%	85.3		%	87.2		%	80.7		%	81.0		%	78.6		%	80.8		%
Current Year Catastrophe Losses and LAE Ratio	12.8			2.6			1.6			1.6			12.4			6.1			7.7			9.2
Prior Years Non-catastrophe Losses and LAE Ratio	1.7			5.1			(6.6		)	(8.7		)	(10.9		)	(1.5		)	3.4			(6.1		)
Prior Years Catastrophe Losses and LAE Ratio	(0.9		)	0.9			—			(7.1		)	(4.7		)	(3.0		)	—			(3.8		)
Combined Ratio as Reported	83.8		%	95.8		%	80.3		%	73.0		%	77.5		%	82.6		%	89.7		%	80.1		%
1 Underlying Combined Ratio is a non-GAAP measure, which is computed as the difference between three operating ratios: the combined ratio, the effect of catastrophes (excluding development of prior-year catastrophes) on the combined ratio and the effect of prior-year reserve development at the reporting date (including development on prior-year catastrophes) on the combined ratio.

Page 22

Kemper Corporation Life & Health Insurance Segment - Results of Operations and Selected Financial Information (Dollars in Millions) (Unaudited)
	Three Months Ended																		Six Months Ended
	Jun 30, 2015			Mar 31, 2015			Dec 31, 2014			Sep 30, 2014			Jun 30, 2014			Mar 31, 2014			Jun 30, 2015			Jun 30, 2014
Results of Operations
Earned Premiums:
Life	$	96.0		$	88.0		$	96.0		$	96.8		$	97.2		$	97.6		$	184.0		$	194.8
Accident and Health	35.7			36.8			36.5			37.1			36.2			38.8			72.5			75.0
Property	19.0			18.9			19.0			19.2			19.4			18.9			37.9			38.3
Total Earned Premiums	150.7			143.7			151.5			153.1			152.8			155.3			294.4			308.1
Net Investment Income	53.5			50.4			71.3			49.2			48.0			50.2			103.9			98.2
Other Income	0.2			0.8			0.5			0.4			—			—			1.0			—
Total Revenues	204.4			194.9			223.3			202.7			200.8			205.5			399.3			406.3
Policyholders’ Benefits and Incurred Losses and LAE	98.0			96.1			91.7			89.9			95.8			97.0			194.1			192.8
Insurance Expenses	84.2			74.0			80.4			81.4			80.3			73.9			158.2			154.2
Operating Profit	22.2			24.8			51.2			31.4			24.7			34.6			47.0			59.3
Income Tax Expense	(7.9		)	(8.7		)	(17.7		)	(11.1		)	(8.8		)	(12.5		)	(16.6		)	(21.3		)
Segment Net Operating Income	$	14.3		$	16.1		$	33.5		$	20.3		$	15.9		$	22.1		$	30.4		$	38.0

	Jun 30, 2015		Mar 31, 2015		Dec 31, 2014		Sep 30, 2014		Jun 30, 2014		Mar 31, 2014
Insurance Reserves:
Future Policyholder Benefits	$	3,255.7	$	3,238.9	$	3,214.7	$	3,202.5	$	3,189.5	$	3,173.8
Incurred Losses and LAE Reserves:
Life	37.5		40.2		38.8		38.7		39.4		42.6
Accident and Health	19.6		20.4		20.2		19.6		20.1		21.3
Property	5.2		3.7		4.5		4.3		5.3		5.6
Total Incurred Losses and LAE Reserves	62.3		64.3		63.5		62.6		64.8		69.5
Insurance Reserves	$	3,318.0	$	3,303.2	$	3,278.2	$	3,265.1	$	3,254.3	$	3,243.3

Page 23

Kemper Corporation Details of Investment Performance (Dollars in Millions)
	Three Months Ended																		Six Months Ended
	Jun 30, 2015			Mar 31, 2015			Dec 31, 2014			Sep 30, 2014			Jun 30, 2014			Mar 31, 2014			Jun 30, 2015			Jun 30, 2014
Net Investment Income
Interest and Dividends on Fixed Maturities	$	58.3		$	59.5		$	57.4		$	56.1		$	56.9		$	57.0		$	117.8		$	113.9
Dividends on Equity Securities	8.7			7.7			34.1			7.7			10.8			7.3			16.4			18.1
Equity Method Limited Liability Investments	4.2			(0.7		)	(0.7		)	4.9			1.3			3.5			3.5			4.8
Fair Value Option Investments	1.8			0.9			(1.3		)	0.3			0.3			—			2.7			0.3
Short-term Investments	0.1			—			0.1			0.1			0.2			0.2			0.1			0.4
Real Estate	3.0			2.9			2.9			3.1			2.9			3.2			5.9			6.1
Loans to Policyholders	5.1			5.3			5.2			5.2			5.0			5.1			10.4			10.1
Other	—			—			0.1			—			—			—			—			—
Total Investment Income	81.2			75.6			97.8			77.4			77.4			76.3			156.8			153.7
Investment Expenses:
Real Estate	2.9			2.7			2.7			3.1			2.7			2.8			5.6			5.5
Other Investment Expenses	1.6			2.3			2.0			2.0			2.1			2.4			3.9			4.5
Total Investment Expenses	4.5			5.0			4.7			5.1			4.8			5.2			9.5			10.0
Net Investment Income	$	76.7		$	70.6		$	93.1		$	72.3		$	72.6		$	71.1		$	147.3		$	143.7
Net Realized Gains on Sales of Investments
Fixed Maturities:
Gains on Sales	$	3.9		$	2.0		$	2.0		$	0.2		$	0.4		$	4.4		$	5.9		$	4.8
Losses on Sales	(0.5		)	(0.1		)	(0.2		)	—			—			—			(0.6		)	—
Equity Securities:
Gains on Sales	31.4			1.5			21.4			7.9			3.0			0.8			32.9			3.8
Losses on Sales	(0.7		)	—			(2.0		)	—			—			—			(0.7		)	—
Real Estate:
Losses on Sales	—			—			—			—			—			(0.2		)	—			(0.2		)
Other Investments:
Gain on Sale of Subsidiary	—			—			—			—			—			1.6			—			1.6
Losses on Sales	(0.1		)	—			—			—			(0.1		)	—			(0.1		)	(0.1		)
Trading Securities Net Gains (Losses)	—			—			(0.2		)	(0.1		)	0.2			—			—			0.2
Net Realized Gains on Sales of Investments	$	34.0		$	3.4		$	21.0		$	8.0		$	3.5		$	6.6		$	37.4		$	10.1
Net Impairment Losses Recognized in Earnings
Fixed Maturities	$	(1.6	)	$	(2.4	)	$	(0.1	)	$	(2.2	)	$	(3.1	)	$	(0.3	)	$	(4.0	)	$	(3.4	)
Equity Securities	(0.6		)	(4.6		)	(4.0		)	(1.6		)	(1.0		)	(0.5		)	(5.2		)	(1.5		)
Real Estate	—			—			(2.4		)	—			—			—			—			—
Net Impairment Losses Recognized in Earnings	$	(2.2	)	$	(7.0	)	$	(6.5	)	$	(3.8	)	$	(4.1	)	$	(0.8	)	$	(9.2	)	$	(4.9	)

Page 24

Kemper Corporation Details of Invested Assets (Dollars in Millions) (Unaudited)
	Jun 30, 2015				Dec 31, 2014				Dec 31, 2013
	Carrying Value		Percent of Total1		Carrying Value		Percent of Total1		Carrying Value		Percent of Total1
Fixed Maturities Reported at Fair Value:
U.S. Government and Government Agencies and Authorities	$	341.2	5.3	%	$	345.5	5.4	%	$	362.2	5.9	%
States and Political Subdivisions	1,531.3		23.7		1,477.1		22.9		1,361.0		22.1
Corporate Securities:
Bonds and Notes	2,810.2		43.6		2,878.5		44.7		2,793.7		45.4
Redeemable Preferred Stocks	5.4		0.1		6.7		0.1		7.4		0.1
Collaterized Loan Obligations	70.4		1.1		64.4		1.0		44.7		0.7
Other Mortgage- and Asset-backed	5.5		0.1		5.4		0.1		6.0		0.1
Subtotal Fixed Maturities Reported at Fair Value	4,764.0		73.9		4,777.6		74.2		4,575.0		74.3
Equity Securities Reported at Fair Value:
Preferred Stocks	112.1		1.7		109.5		1.7		110.2		1.8
Common Stocks	38.8		0.6		133.8		2.1		189.5		3.1
Other Equity Interests:
Exchange Traded Funds	212.1		3.3		202.7		3.1		124.9		2.0
Limited Liability Companies and Limited Partnerships	199.9		3.1		186.2		2.9		173.9		2.8
Subtotal Equity Securities Reported at Fair Value	562.9		8.7		632.2		9.8		598.5		9.7
Equity Method Limited Liability Investments	173.5		2.7		184.8		2.9		245.1		4.0
Fair Value Option Investments	160.0		2.5		53.3		0.8		—		—
Short-term Investments at Cost which Approximates Fair Value	338.4		5.2		342.2		5.3		284.7		4.6
Other Investments:
Loans to Policyholders at Unpaid Principal	284.8		4.4		283.4		4.4		275.4		4.5
Real Estate at Depreciated Cost	159.1		2.5		160.9		2.5		167.1		2.7
Trading Securities at Fair Value	5.0		0.1		4.9		0.1		5.0		0.1
Other	2.1		—		0.4		—		0.5		—
Subtotal Other Investments	451.0		7.0		449.6		7.0		448.0		7.3
Total Investments	$	6,449.8	100.0	%	$	6,439.7	100.0	%	$	6,151.3	100.0	%
S&P Equivalent Rating for Fixed Maturities
AAA, AA, A	$	3,241.2	68.0	%	$	3,249.3	68.0	%	$	3,128.1	68.4	%
BBB	1,078.0		22.6		1,156.4		24.2		1,119.9		24.5
BB, B	211.0		4.4		166.7		3.5		144.6		3.1
CCC or Lower	233.8		4.9		205.2		4.3		182.4		4.0
Total Investments in Fixed Maturities	$	4,764.0	100.0	%	$	4,777.6	100.0	%	$	4,575.0	100.0	%
Duration (in Years)
Total Investments in Fixed Maturities	6.6				6.9				6.8
1 Sum of percentages for individual lines may not equal subtotals and grand total due to rounding.

Page 25

Kemper Corporation Investment Concentration (Dollars in Millions) (Unaudited)
	Jun 30, 2015				Dec 31, 2014				Dec 31, 2013
Fair Value of Non-governmental Fixed Maturities by Industry	Amount		Percent of Total Investments		Amount		Percent of Total Investments		Amount		Percent of Total Investments
Manufacturing	$	1,175.9	18.2	%	$	1,247.4	19.4	%	$	1,196.9	19.5	%
Finance, Insurance and Real Estate	713.6		11.1		785.6		12.2		767.9		12.5
Services	358.7		5.6		305.0		4.7		277.5		4.5
Transportation, Communication and Utilities	330.6		5.1		312.9		4.9		306.7		5.0
Mining	143.4		2.2		139.7		2.2		143.1		2.3
Wholesale Trade	74.6		1.2		69.7		1.1		60.7		1.0
Retail Trade	74.6		1.2		74.5		1.2		75.6		1.2
Agriculture, Forestry and Fishing	15.9		0.2		15.3		0.2		18.8		0.3
Other	4.2		0.1		4.9		0.1		4.6		0.1
Total Fair Value of Non-governmental Fixed Maturities	$	2,891.5	44.9	%	$	2,955.0	46.0	%	$	2,851.8	46.4	%

	Jun 30, 2015
Ten Largest Investment Exposures 1	Fair Value		Percent of Total Investments
Fixed Maturities:
States and Political Subdivisions:
Texas	$	85.5	1.3	%
Ohio	74.8		1.2
Michigan	71.9		1.1
Georgia	71.2		1.1
Florida	65.6		1.0
Colorado	63.3		1.0
Wisconsin	58.7		0.9
Louisiana	54.7		0.8
Equity Securities - Other Equity Interests:
Vanguard Total Stock Market ETF	88.8		1.4
iShares® Core S&P 500 ETF	71.2		1.1
Total	$	705.7	10.9	%

¹  Excluding Investments in U.S. Government and Government Agencies and Authorities and Obligations of States and Political Subdivisions pre-refunded with U.S. government and government agencies obligations held in Trust at June 30, 2015.

Page 26

Kemper Corporation Municipal Bonds (excluding Pre-refunded Bonds) (Dollars in Millions) (Unaudited)
	Jun 30, 2015
	State General Obligation		Political Subdivision General Obligation		Revenue		Total Fair Value		Percent of Total Muni Bond1		Percent of Total Investments1
Texas	$	17.7	$	19.3	$	48.5	$	85.5	6.0	%	1.3	%
Ohio	40.0		4.9		29.9		74.8		5.3		1.2
Michigan	37.0		—		34.9		71.9		5.1		1.1
Georgia	51.0		7.1		13.1		71.2		5.0		1.1
Florida	49.4		—		16.2		65.6		4.6		1.0
Colorado	—		15.9		47.4		63.3		4.5		1.0
Wisconsin	50.4		6.9		1.4		58.7		4.1		0.9
Louisiana	24.9		4.3		25.5		54.7		3.9		0.8
Arkansas	52.1		—		—		52.1		3.7		0.8
New York	6.2		2.6		41.9		50.7		3.6		0.8
Washington	18.1		0.3		31.5		49.9		3.5		0.8
North Carolina	17.5		3.3		23.1		43.9		3.1		0.7
Oregon	40.1		—		1.1		41.2		2.9		0.6
Massachusetts	2.7		1.5		30.3		34.5		2.4		0.5
Minnesota	26.4		0.4		5.5		32.3		2.3		0.5
Utah	16.6		1.6		14.0		32.2		2.3		0.5
Virginia	—		19.4		11.3		30.7		2.2		0.5
Connecticut	24.2		—		5.3		29.5		2.1		0.5
Nevada	22.2		7.2		—		29.4		2.1		0.5
Indiana	—		—		27.9		27.9		2.0		0.4
Delaware	17.4		—		9.2		26.6		1.9		0.4
Maryland	0.6		21.4		3.5		25.5		1.8		0.4
New Jersey	—		5.4		19.6		25.0		1.8		0.4
California	0.3		—		24.7		25.0		1.8		0.4
Pennsylvania	11.5		2.7		10.4		24.6		1.7		0.4
South Carolina	20.0		3.1		—		23.1		1.6		0.4
Tennessee	4.4		7.3		9.7		21.4		1.5		0.3
Missouri	—		—		18.5		18.5		1.3		0.3
Iowa	—		—		17.2		17.2		1.2		0.3
District of Columbia	—		4.9		12.0		16.9		1.2		0.3
Illinois	2.6		5.1		9.0		16.7		1.2		0.3
Idaho	—		10.6		5.3		15.9		1.1		0.2
Rhode Island	10.7		—		5.1		15.8		1.1		0.2
Kentucky	—		—		15.2		15.2		1.1		0.2
Hawaii	15.0		—		—		15.0		1.1		0.2
Alabama	6.1		—		8.7		14.8		1.0		0.2
Arizona	—		0.8		13.7		14.5		1.0		0.2
New Mexico	—		—		13.0		13.0		0.9		0.2
Nebraska	—		6.6		5.3		11.9		0.8		0.2
All Other States	21.6		—		39.9		61.5		4.3		1.0
Total (1)	$	606.7	$	162.6	$	648.8	$	1,418.1	100.0	%	22.0	%
1 Sum of percentages for individual lines may not equal total due to rounding.

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Kemper Corporation Investments in Limited Liability Companies and Limited Partnerships (Dollars in Millions) (Unaudited)
	Unfunded Commitment		Reported Value
Asset Class	Jun 30, 2015		Jun 30, 2015		Dec 31, 2014
Reported as Equity Method Limited Liability Investments at Cost Plus Cumulative Undistributed Earnings:
Distressed Debt	$	—	$	82.2	$	93.0
Secondary Transactions	17.9		43.9		48.9
Mezzanine Debt	26.0		26.0		27.0
Senior Debt	3.4		9.0		5.0
Growth Equity	—		4.9		5.3
Leveraged Buyout	0.1		4.8		3.9
Other	—		2.7		1.7
Total Equity Method Limited Liability Investments	47.4		173.5		184.8
Reported as Other Equity Interests at Fair Value:
Mezzanine Debt	62.0		73.4		69.7
Senior Debt	21.8		31.7		21.4
Distressed Debt	6.5		18.1		18.2
Secondary Transactions	11.4		13.5		15.6
Hedge Fund	—		9.4		9.1
Leveraged Buyout	2.0		6.3		8.0
Other	1.6		47.5		44.2
Total Reported as Other Equity Interests at Fair Value	105.3		199.9		186.2
Reported as Fair Value Option Investments:
Hedge Fund	—		160.0		53.3
Total Investments in Limited Liability Companies and Limited Partnerships	$	152.7	$	533.4	$	424.3

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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.

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

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

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

1) Net Realized Gains on Sales of Investments;

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

3) Loss from Early Extinguishment of Debt; and

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

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

The Company believes that 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. Net Realized Gains on Sales of Investments and Net Impairment Losses Recognized in Earnings related to investments included in the Company’s results may vary significantly between periods and are generally driven by business decisions and external economic developments such as capital market conditions that impact the values of the Company’s investments, the timing of which is unrelated to the insurance underwriting process. Loss from Early Extinguishment of Debt is driven by the Company’s financing and refinancing decisions and capital needs, as well as, external economic developments such as debt market conditions, the timing of which is unrelated to the insurance underwriting process. Significant non-recurring items are excluded because, by their nature, they are not indicative of the Company’s business or economic trends.

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Kemper Corporation

Definitions of Non-GAAP Financial Measures (continued)

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

	Three Months Ended																		Six Months Ended
Dollars in Millions (Unaudited)	Jun 30, 2015			Mar 31, 2015			Dec 31, 2014			Sep 30, 2014			Jun 30, 2014			Mar 31, 2014			Jun 30, 2015			Jun 30, 2014
Consolidated Net Operating Income	$	6.7		$	21.8		$	53.9		$	2.1		$	9.6		$	31.5		$	28.5		$	41.1
Net Income (Loss) From:
Net Realized Gains on Sales of Investments	22.1			2.2			13.6			5.2			2.4			4.2			24.3			6.6
Net Impairment Losses Recognized in Earnings	(1.4		)	(4.6		)	(4.2		)	(2.5		)	(2.7		)	(0.5		)	(6.0		)	(3.2		)
Loss from Early Extinguishment of Debt	—			(5.9		)	—			—			—			—			(5.9		)	—
Income from Continuing Operations	$	27.4		$	13.5		$	63.3		$	4.8		$	9.3		$	35.2		$	40.9		$	44.5

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

A reconciliation of Consolidated Net Operating Income Per Unrestricted Share-basic to Income from Continuing Operations Per Unrestricted Share-basic is presented below:

	Three Months Ended																		Six Months Ended
(Unaudited)	Jun 30, 2015			Mar 31, 2015			Dec 31, 2014			Sep 30, 2014			Jun 30, 2014			Mar 31, 2014			Jun 30, 2015			Jun 30, 2014
Consolidated Net Operating Income Per Unrestricted Share	$	0.13		$	0.42		$	1.02		$	0.04		$	0.18		$	0.56		$	0.55		$	0.74
Net Income (Loss) Per Unrestricted Share From:
Net Realized Gains on Sales of Investments	0.43			0.04			0.26			0.10			0.04			0.08			0.47			0.12
Net Impairment Losses Recognized in Earnings	(0.03		)	(0.09		)	(0.08		)	(0.05		)	(0.05		)	(0.01		)	(0.12		)	(0.06		)
Loss from Early Extinguishment of Debt	—			(0.11		)	—			—			—			—			(0.11		)	—
Income from Continuing Operations Per Unrestricted Share	$	0.53		$	0.26		$	1.20		$	0.09		$	0.17		$	0.63		$	0.79		$	0.80

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

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