Kemper (KMPR) 8-K Kemper Reports Second Quarter 2022 Operating Results

Exhibit 99.2

Investor Supplement

Second Quarter 2022

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

Caution Regarding Forward-Looking Statements

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

•changes in the frequency and severity of insurance claims;

•claim development and the process of estimating claim reserves;

•the impacts of inflation;

•supply chain disruption;

•product demand and pricing;

•effects of governmental and regulatory actions;

•litigation outcomes;

•investment risks;

•cybersecurity risks;

•impact of catastrophes; and

•other risks and uncertainties detailed in Kemper’s Annual Report on Form 10-K and subsequent filings with the Securities and Exchange Commission (“SEC”).

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

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

Exhibit 99.2

Non-GAAP Financial Measures

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

Kemper Corporation

Investor Supplement

Second Quarter 2022

Table of Contents

	Page
Consolidated Financial Highlights	3
Consolidated Statements of Income (Loss)	4
Consolidated Balance Sheets	5
Consolidated Statements of Cash Flows	6-7
Capital Metrics	8-9
Debt Outstanding, FHLB Advances and Ratings	10
Segment Summary Results:
Revenues	11
Operating Income (Loss)	12
Net Operating Income (Loss)	12
Catastrophe Frequency and Severity	13
Specialty Property & Casualty Insurance Segment - Results of Operations and Selected Financial Information	14-15
Personal Automobile Insurance	16
Commercial Automobile Insurance	17
Preferred Property & Casualty Insurance Segment - Results of Operations and Selected Financial Information	18-19
Personal Automobile Insurance	20
Homeowners and Other Personal Insurance	21
Homeowners Insurance	22
Other Personal Insurance	23
Life & Health Insurance Segment - Results of Operations and Selected Financial Information	24
Life Insurance	25
Accident and Health Insurance	25
Property Insurance	26
Expenses	27
Details of Investment Performance	28
Details of Invested Assets	29-30
Investment Concentration	31
Municipal Bond Securities	32
Investments in Limited Liability Companies and Limited Partnerships	33
Definitions of Non-GAAP Financial Measures	34-35
As Adjusted for Acquisition	36-39

Kemper Corporation

Consolidated Financial Highlights

(Dollars in Millions, Except Per Share Amounts)

(Unaudited)

	Three Months Ended																			Six Months Ended
		Jun 30, 2022			Mar 31, 2022			Dec 31, 2021			Sep 30, 2021			Jun 30, 2021			Mar 31, 2021			Jun 30, 2022		Jun 30, 2021
For Period Ended
Earned Premiums		$	1,353.7		$	1,338.6		$	1,359.1		$	1,356.1		$	1,337.7		$	1,200.8		$	2,692.3	$	2,538.5
Net Investment Income		118.5			100.0			108.4			101.9			113.9			103.1			218.5		217.0
Change in Value of Alternative Energy Partnership Investments		(4.9)			(16.7)			(14.3)			(23.8)			(7.7)			(15.4)			(21.6)		(23.1)
Other Income		0.9			2.4			—			1.5			1.8			1.5			3.3		3.3
Income (Loss) from Change in Fair Value of Equity and Convertible Securities		(40.5)			(28.2)			22.2			(0.6)			40.8			52.2			(68.7)		93.0
Net Realized Investment Gains (Losses)		6.1			(7.4)			18.5			9.5			16.0			9.8			(1.3)		25.8
Total Revenues		$	1,433.8		$	1,388.7		$	1,493.9		$	1,444.6		$	1,502.5		$	1,352.0		$	2,822.5	$	2,854.5
Net Income (Loss)		$	(74.7)		$	(94.8)		$	(105.8)		$	(75.3)		$	(62.6)		$	123.2		$	(169.5)	$	60.6
Adjusted Consolidated Net Operating Income (Loss) 1		$	(39.7)		$	(60.1)		$	(130.8)		$	(75.8)		$	(99.4)		$	87.2		$	(99.8)	$	(12.2)
Per Unrestricted Common Share Amounts:
Basic:
Net Income (Loss)		$	(1.17)		$	(1.49)		$	(1.66)		$	(1.18)		$	(0.97)		$	1.88		$	(2.66)	$	0.93
Adjusted Consolidated Net Operating Income (Loss) 1		$	(0.62)		$	(0.94)		$	(2.05)		$	(1.19)		$	(1.54)		$	1.33		$	(1.56)	$	(0.19)
Diluted:
Net Income (Loss)		$	(1.17)		$	(1.49)		$	(1.66)		$	(1.18)		$	(0.97)		$	1.85		$	(2.66)	$	0.92
Adjusted Consolidated Net Operating Income (Loss) 1		$	(0.62)		$	(0.94)		$	(2.05)		$	(1.19)		$	(1.54)		$	1.31		$	(1.56)	$	(0.19)
Dividends Paid to Shareholders Per Share		$	0.31		$	0.31		$	0.31		$	0.31		$	0.31		$	0.31		$	0.62	$	0.62
At Period End
Total Assets		$	13,953.0		$	14,614.7		$	14,916.5		$	14,977.2		$	14,950.7		$	14,203.7
Insurance Reserves		$	6,326.4		$	6,316.4		$	6,313.6		$	6,120.3		$	5,982.4		$	5,541.1
Debt		$	1,385.8		$	1,385.2		$	1,121.9		$	1,122.1		$	1,122.3		$	1,122.6
Shareholders’ Equity		$	2,850.0		$	3,394.5		$	4,007.7		$	4,151.2		$	4,306.2		$	4,339.1
Shareholders’ Equity Excluding Goodwill1,2		$	1,538.0		$	2,082.5		$	2,695.7		$	2,839.2		$	2,994.3		$	3,225.1
Common Shares Issued and Outstanding (In Millions)		63.850			63.800			63.685			63.652			63.636			65.016
Book Value Per Share2		$	44.64		$	53.21		$	62.93		$	65.22		$	67.67		$	66.74
Book Value Per Share Excluding Goodwill1,2		$	24.09		$	32.64		$	42.33		$	44.61		$	47.05		$	49.60
Book Value Per Share Excluding Net Unrealized (Gains) Losses on Fixed Maturities1,2		$	52.03		$	53.42		$	55.04		$	56.94		$	58.39		$	60.00
Book Value Per Share Excluding Net Unrealized (Gains) Losses on Fixed Maturities and Goodwill1,2		$	31.48		$	32.86		$	34.44		$	36.33		$	37.77		$	42.87
Debt to Total Capitalization2		32.7		%	29.0		%	21.9		%	21.3		%	20.7		%	20.6		%
Rolling 12 Months Return on 5-point Average Shareholders Equity2,3		(9.4)		%	(8.4)		%	(2.8)		%	1.9		%	6.4		%	11.1		%
1 Non-GAAP Financial Measure. See page 34 for definition.
2 See Capital Metrics on pages 8-9 for detail calculations.
3 Rolling 12 Months Return on 5-point Average Shareholders Equity is calculated by taking the last 12 months of Net Income (Loss) divided by the 5-point average Shareholders’ Equity. The 5-point Average Shareholders’ Equity is calculated by using a 5-point quarter average of Shareholders’ Equity for the 12 month period.

3

Kemper Corporation

Consolidated Statements of Income (Loss)

(Dollars in Millions, Except Per Share Amounts)

(Unaudited)

	Three Months Ended												Six Months Ended
	Jun 30, 2022		Mar 31, 2022		Dec 31, 2021		Sep 30, 2021		Jun 30, 2021		Mar 31, 2021		Jun 30, 2022		Jun 30, 2021
Revenues:
Earned Premiums	$	1,353.7	$	1,338.6	$	1,359.1	$	1,356.1	$	1,337.7	$	1,200.8	$	2,692.3	$	2,538.5
Net Investment Income	118.5		100.0		108.4		101.9		113.9		103.1		218.5		217.0
Change in Value of Alternative Energy Partnership Investments	(4.9)		(16.7)		(14.3)		(23.8)		(7.7)		(15.4)		(21.6)		(23.1)
Other Income	0.9		2.4		—		1.5		1.8		1.5		3.3		3.3
Income (Loss) from Change in Fair Value of Equity and Convertible Securities	(40.5)		(28.2)		22.2		(0.6)		40.8		52.2		(68.7)		93.0
Net Realized Investment Gains (Losses)	11.0		1.5		21.7		10.1		19.2		13.8		12.5		33.0
Impairment Losses	(4.9)		(8.9)		(3.2)		(0.6)		(3.2)		(4.0)		(13.8)		(7.2)
Total Revenues	1,433.8		1,388.7		1,493.9		1,444.6		1,502.5		1,352.0		2,822.5		2,854.5
Expenses:
Policyholders’ Benefits and Incurred Losses and Loss Adjustment Expenses	1,170.3		1,153.4		1,276.0		1,211.2		1,224.1		889.5		2,323.7		2,113.6
Insurance Expenses	307.7		304.0		309.1		311.3		314.0		283.7		611.7		597.7
Loss from Early Extinguishment of Debt	—		3.7		—		—		—		—		3.7		—
Interest and Other Expenses	53.5		54.1		56.2		51.9		54.1		57.2		107.6		111.3
Total Expenses	1,531.5		1,515.2		1,641.3		1,574.4		1,592.2		1,230.4		3,046.7		2,822.6
Income (Loss) before Income Taxes	(97.7)		(126.5)		(147.4)		(129.8)		(89.7)		121.6		(224.2)		31.9
Income Tax Benefit (Expense)	23.0		31.7		41.6		54.5		27.1		1.6		54.7		28.7
Net Income (Loss)	$	(74.7)	$	(94.8)	$	(105.8)	$	(75.3)	$	(62.6)	$	123.2	$	(169.5)	$	60.6
Income (Loss) Per Unrestricted Share:
Basic	$	(1.17)	$	(1.49)	$	(1.66)	$	(1.18)	$	(0.97)	$	1.88	$	(2.66)	$	0.93
Diluted	$	(1.17)	$	(1.49)	$	(1.66)	$	(1.18)	$	(0.97)	$	1.85	$	(2.66)	$	0.92
Net Income (Loss) Per Unrestricted Share:
Basic	$	(1.17)	$	(1.49)	$	(1.66)	$	(1.18)	$	(0.97)	$	1.88	$	(2.66)	$	0.93
Diluted	$	(1.17)	$	(1.49)	$	(1.66)	$	(1.18)	$	(0.97)	$	1.85	$	(2.66)	$	0.92
Dividends Paid to Shareholders Per Share	$	0.31	$	0.31	$	0.31	$	0.31	$	0.31	$	0.31	$	0.62	$	0.62
Weighted Average Unrestricted Common Shares Outstanding (in Millions)	63.816		63.744		63.655		63.628		64.377		65.425		63.780		64.898

4

Kemper Corporation

Consolidated Balance Sheets

(Dollars in Millions)

(Unaudited)

	Jun 30, 2022		Mar 31, 2022		Dec 31, 2021		Sep 30, 2021		Jun 30, 2021		Mar 31, 2021
Assets:
Investments:
Fixed Maturities at Fair Value	$	7,218.8	$	7,783.9	$	7,986.9	$	7,885.1	$	7,835.0	$	7,479.4
Equity Securities at Fair Value	395.0		571.5		830.6		969.6		957.7		897.4
Equity Method Limited Liability Investments	228.9		230.0		241.9		255.1		245.5		219.2
Alternative Energy Partnerships	17.0		22.4		39.6		54.2		46.6		54.4
Short-term Investments at Cost which Approximates Fair Value	230.2		243.8		284.1		259.7		370.6		196.9
Company-Owned Life Insurance	566.2		556.4		448.1		440.7		433.5		429.5
Loans to Policyholders	282.3		284.7		286.2		289.6		291.7		295.1
Other Investments	276.9		275.4		270.0		268.3		261.7		250.8
Total Investments	9,215.3		9,968.1		10,387.4		10,422.3		10,442.3		9,822.7
Cash	348.6		297.3		148.2		119.8		105.1		547.4
Receivables from Policyholders	1,375.1		1,404.5		1,418.7		1,481.2		1,479.9		1,260.9
Other Receivables	206.5		203.4		207.3		207.3		214.9		225.4
Deferred Policy Acquisition Costs	680.5		680.0		677.6		676.6		652.7		611.7
Goodwill	1,312.0		1,312.0		1,312.0		1,312.0		1,311.9		1,114.0
Current Income Tax Assets	200.8		183.0		173.1		138.7		94.2		65.6
Deferred Income Tax Assets	57.1		—		—		—		—		—
Other Assets	557.1		566.4		592.2		619.3		649.7		556.0
Total Assets	$	13,953.0	$	14,614.7	$	14,916.5	$	14,977.2	$	14,950.7	$	14,203.7
Liabilities and Shareholders’ Equity:
Insurance Reserves:
Life and Health	$	3,568.0	$	3,556.3	$	3,540.9	$	3,524.1	$	3,551.6	$	3,541.6
Property and Casualty	2,758.4		2,760.1		2,772.7		2,596.2		2,430.8		1,999.5
Total Insurance Reserves	6,326.4		6,316.4		6,313.6		6,120.3		5,982.4		5,541.1
Unearned Premiums	1,854.4		1,890.5		1,898.7		1,965.7		1,968.1		1,713.0
Policyholder Contract Liabilities	704.5		655.0		504.0		481.8		442.7		466.5
Deferred Income Tax Liabilities	—		69.6		227.0		242.4		269.6		227.6
Accrued Expenses and Other Liabilities	831.9		903.5		843.6		893.7		859.4		793.8
Long-term Debt, Current and Non-current, at Amortized Cost	1,385.8		1,385.2		1,121.9		1,122.1		1,122.3		1,122.6
Total Liabilities	11,103.0		11,220.2		10,908.8		10,826.0		10,644.5		9,864.6
Shareholders’ Equity:
Common Stock	6.4		6.4		6.4		6.4		6.4		6.5
Paid-in Capital	1,812.5		1,803.1		1,790.7		1,777.0		1,770.9		1,802.1
Retained Earnings	1,551.9		1,647.3		1,762.5		1,888.4		1,985.9		2,140.0
Accumulated Other Comprehensive Income (Loss)	(520.8)		(62.3)		448.1		479.4		543.0		390.5
Total Shareholders’ Equity	2,850.0		3,394.5		4,007.7		4,151.2		4,306.2		4,339.1
Total Liabilities and Shareholders’ Equity	$	13,953.0	$	14,614.7	$	14,916.5	$	14,977.2	$	14,950.7	$	14,203.7

5

Kemper Corporation Consolidated Statements of Cash Flows (Dollars in Millions)  (Unaudited)
	Six Months Ended
	Jun 30, 2022		Jun 30, 2021
Cash Flows from Operating Activities:
Net Income (Loss)	$	(169.5)	$	60.6
Adjustments to Reconcile Net Income (Loss) to Net Cash Provided by (Used in) Operating Activities:
Net Realized Investment Gains (Losses)	(12.5)		(33.1)
Impairment Losses	13.8		7.2
Depreciation and Amortization of Property, Equipment and Software	26.5		22.2
Amortization of Intangibles Assets Acquired	11.2		30.6
Loss from Early Extinguishment of Debt	3.7		—
Change in Accumulated Undistributed Earnings of Equity Method Limited Liability Investments	(18.3)		(38.9)
(Income) Loss from Change in Value of Alternative Energy Partnership Investments	21.6		23.1
(Increase) Decrease in Value of Equity and Convertible Securities	68.7		(93.0)
Changes in:
Receivables from Policyholders	43.6		(136.4)
Reinsurance Recoverables	0.3		21.2
Deferred Policy Acquisition Costs	(2.9)		(63.5)
Insurance Reserves	12.9		248.8
Unearned Premiums	(44.3)		175.2
Income Taxes	(49.1)		(67.3)
Other Assets and Liabilities	4.3		81.0
Net Cash Provided by (Used in) Operating Activities	(90.0)		237.7

6

Kemper Corporation Consolidated Statements of Cash Flows (Dollars in Millions)  (Unaudited)
	Six Months Ended
	Jun 30, 2022		Jun 30, 2021
Net Cash Provided by Operating Activities (Carryforward from page 6)	$	(90.0)	$	237.7
Cash Flows from Investing Activities:
Proceeds from Sales, Calls, and Maturities of Fixed Maturities	564.9		726.1
Proceeds from the Sales of Investments:
Equity Securities	403.7		81.6
Real Estate Investments	—		2.3
Mortgage Loans	46.6		30.3
Other Investments	36.9		57.9
Purchases of Investments:
Fixed Maturities	(1,025.9)		(967.1)
Equity Securities	(39.1)		(38.4)
Real Estate Investments	(2.9)		(1.3)
Corporate-Owned Life Insurance	(100.0)		(100.0)
Mortgage Loans	(45.0)		(65.5)
Other Investments	(4.9)		(72.8)
Net Sales (Purchases) of Short-term Investments	54.0		605.7
Acquisition of Business, Net of Cash Acquired	—		(316.5)
Acquisition of Software and Long-lived Assets	(23.7)		(25.5)
Other	2.9		5.3
Net Cash Provided by (Used In) Investing Activities	(132.5)		(77.9)
Cash Flows from Financing Activities:
Repayment of Long-Term Debt	(280.0)		(50.0)
Proceeds from Issuance of 3.800% Senior Notes due February 23, 2032	396.3		—
Issuance Fees on 3.800% Senior Notes due February 23, 2032	(1.2)		—
Proceeds from Issuance of 5.875% Fixed-Rate Reset Junior Subordinated Debentures Due 2062	145.6		—
Issuance Fees on 5.875% Fixed-Rate Reset Junior Subordinated Debentures Due 2062	(0.9)		—
Proceeds from Policyholder Contract Obligations	289.6		132.7
Repayment of Policyholder Contract Obligations	(89.3)		(156.8)
Proceeds from Shares Issued under Employee Stock Purchase Plan	2.5		2.5
Common Stock Repurchases	—		(151.7)
Dividends and Dividend Equivalents Paid	(40.0)		(41.2)
Other	0.3		3.7
Net Cash Provided by (Used In) Financing Activities	422.9		(260.8)
Increase (Decrease) in Cash	200.4		(101.0)
Cash, Beginning of Year	148.2		206.1
Cash, End of Period	$	348.6	$	105.1

7

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

8

Kemper Corporation Capital Metrics (Dollars and Shares in Millions, Except Per Share Amounts) (Unaudited)
	Jun 30, 2022			Mar 31, 2022			Dec 31, 2021			Sep 30, 2021			Jun 30, 2021			Mar 31, 2021
Debt and Total Capitalization
Debt	$	1,385.8		$	1,385.2		$	1,121.9		$	1,122.1		$	1,122.3		$	1,122.6
Shareholders’ Equity	2,850.0			3,394.5			4,007.7			4,151.2			4,306.2			4,339.1
Total Capitalization	$	4,235.8		$	4,779.7		$	5,129.6		$	5,273.3		$	5,428.5		$	5,461.7
Ratio of Debt to Shareholders’ Equity	48.6		%	40.8		%	28.0		%	27.0		%	26.1		%	25.9		%
Ratio of Debt to Total Capitalization	32.7		%	29.0		%	21.9		%	21.3		%	20.7		%	20.6		%
Parent Company Liquidity
Kemper Holding Company Cash and Investments1	$	275.9		$	318.3		$	233.9		$	330.6		$	214.8		$	607.1
Borrowings Available Under Credit Agreement	600.0			600.0			400.0			400.0			400.0			400.0
Parent Company Liquidity	$	875.9		$	918.3		$	633.9		$	730.6		$	614.8		$	1,007.1
Capital Returned to Shareholders
Cash Dividends Paid 2	$	20.6		$	19.6		$	19.9		$	19.7		$	20.4		$	21.0
1 Includes Kemper's direct non-insurance subsidiaries
2 Three Months Ended

9

Kemper Corporation

Debt Outstanding, FHLB Advances and Ratings

(Dollars in Millions)

(Unaudited)

	Jun 30, 2022		Mar 31, 2022		Dec 31, 2021		Sep 30, 2021		Jun 30, 2021		Mar 31, 2021
Kemper Corporation:
Senior Notes at Amortized Cost:
5.000% Senior Notes due September 19, 2022	—		—		276.7		277.1		277.6		277.9
4.350% Senior Notes due February 15, 2025	449.2		449.1		449.0		448.9		448.8		448.9
2.400% Senior Notes due September 30, 2030	396.4		396.3		396.2		396.1		395.9		395.8
3.800% Subordinated Debentures due 2032	395.2		395.1		—		—		—		—
5.875% Fixed-Rate Reset Junior Subordinated Debentures Due 2062 at Amortized Cost	145.0		144.7		—		—		—		—
Long-term Debt Outstanding	$	1,385.8	$	1,385.2	$	1,121.9	$	1,122.1	$	1,122.3	$	1,122.6
Federal Home Loan Bank Advances to Insurance Subsidiaries:
Reported as Policyholder Contract Liabilities:
Federal Home Loan Bank of Chicago	$	602.8	$	553.1	$	401.9	$	378.9	$	382.8	$	407.5
Reported as Debt Outstanding:
Federal Home Loan Bank of Dallas	$	—	$	—	$	—	$	—	$	—	$	—
Federal Home Loan Bank of Chicago	$	—	$	—	$	—	$	—	$	—	$	—
Federal Home Loan Bank of San Francisco	$	—	$	—	$	—	$	—	$	—	$	—
	A.M. 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-

NR - Not Rated

10

Kemper Corporation

Segment Revenues

(Dollars in Millions)

(Unaudited)

	Three Months Ended												Six Months Ended
	Jun 30, 2022		Mar 31, 2022		Dec 31, 2021		Sep 30, 2021		Jun 30, 2021		Mar 31, 2021		Jun 30, 2022		Jun 30, 2021
Revenues:
Specialty Property & Casualty Insurance:
Earned Premiums:
Personal Automobile	$	905.8	$	901.7	$	918.1	$	920.6	$	909.6	$	785.4	$	1,807.5	$	1,695.0
Commercial Automobile	137.9		119.9		114.2		107.7		100.7		92.2		257.8		192.9
Total Specialty Property & Casualty Insurance Earned Premiums	1,043.7		1,021.6		1,032.3		1,028.3		1,010.3		877.6		2,065.3		1,887.9
Net Investment Income	34.0		34.9		37.8		37.0		42.7		35.0		68.9		77.7
Change in Value of Alternative Energy Partnership Investments	(2.5)		(8.4)		(6.7)		(11.3)		(3.7)		(7.3)		(10.9)		(11.0)
Other Income	1.0		1.7		1.0		1.2		1.0		0.9		2.7		1.9
Total Specialty Property & Casualty Insurance Revenues	1,076.2		1,049.8		1,064.4		1,055.2		1,050.3		906.2		2,126.0		1,956.5
Preferred Property & Casualty Insurance:
Earned Premiums:
Personal Automobile	94.0		96.0		101.4		102.6		103.5		103.0		190.0		206.5
Homeowners	47.7		51.3		52.7		52.5		51.3		50.8		99.0		102.1
Other Personal	8.2		8.3		8.5		8.6		8.4		8.4		16.5		16.8
Total Preferred Property & Casualty Insurance Earned Premiums	149.9		155.6		162.6		163.7		163.2		162.2		305.5		325.4
Net Investment Income	11.9		12.5		17.1		16.1		19.5		15.9		24.4		35.4
Change in Value of Alternative Energy Partnership Investments	(1.1)		(3.9)		(3.8)		(6.4)		(2.0)		(4.1)		(5.0)		(6.1)
Total Preferred Property & Casualty Insurance Revenues	160.7		164.2		175.9		173.4		180.7		174.0		324.9		354.7
Life & Health Insurance:
Earned Premiums:
Life	102.9		101.3		101.5		101.5		100.6		98.1		204.2		198.7
Accident and Health	45.1		45.8		47.6		47.0		47.9		47.4		90.9		95.3
Property	12.1		14.3		15.1		15.6		15.7		15.5		26.4		31.2
Total Life & Health Insurance Earned Premiums	160.1		161.4		164.2		164.1		164.2		161.0		321.5		325.2
Net Investment Income	61.9		49.4		50.8		48.4		52.4		51.1		111.3		103.5
Change in Value of Alternative Energy Partnership Investments	(1.3)		(4.4)		(3.7)		(6.1)		(2.0)		(4.0)		(5.7)		(6.0)
Other Income	(0.8)		—		(1.6)		0.1		0.1		0.1		(0.8)		0.2
Total Life & Health Insurance Revenues	219.9		206.4		209.7		206.5		214.7		208.2		426.3		422.9
Total Segment Revenues	1,456.8		1,420.4		1,450.0		1,435.1		1,445.7		1,288.4		2,877.2		2,734.1
Income (Loss) from Change in Fair Value of Equity and Convertible Securities	(40.5)		(28.2)		22.2		(0.6)		40.8		52.2		(68.7)		93.0
Net Realized Investment Gains (Losses)	11.0		1.5		21.7		10.1		19.2		13.8		12.5		33.0
Impairment Losses	(4.9)		(8.9)		(3.2)		(0.6)		(3.2)		(4.0)		(13.8)		(7.2)
Other	11.4		3.9		3.2		0.6		—		1.6		15.3		1.6
Total Revenues	$	1,433.8	$	1,388.7	$	1,493.9	$	1,444.6	$	1,502.5	$	1,352.0	$	2,822.5	$	2,854.5

11

Kemper Corporation

Segment Operating Results

(Dollars in Millions)

(Unaudited)

	Three Months Ended												Six Months Ended
	Jun 30, 2022		Mar 31, 2022		Dec 31, 2021		Sep 30, 2021		Jun 30, 2021		Mar 31, 2021		Jun 30, 2022		Jun 30, 2021
Segment Operating Income (Loss):
Specialty Property & Casualty Insurance	$	(51.0)	$	(60.2)	$	(163.4)	$	(91.8)	$	(122.1)	$	85.2	$	(111.2)	$	(36.9)
Preferred Property & Casualty Insurance	(21.6)		(9.5)		(12.0)		(17.4)		(13.4)		3.0		(31.1)		(10.4)
Life & Health Insurance	20.8		1.2		4.0		(5.9)		13.2		(0.8)		22.0		12.4
Total Segment Operating Income (Loss)	(51.8)		(68.5)		(171.4)		(115.1)		(122.3)		87.4		(120.3)		(34.9)
Other	(1.6)		(14.0)		(7.6)		(15.5)		(13.8)		(11.5)		(15.6)		(25.3)
Corporate and Other Operating Income (Loss)	(1.6)		(14.0)		(7.6)		(15.5)		(13.8)		(11.5)		(15.6)		(25.3)
Total Operating Income (Loss)	(53.4)		(82.5)		(179.0)		(130.6)		(136.1)		75.9		(135.9)		(60.2)
Income From:
Change in Fair Value of Equity and Convertible Securities	(40.5)		(28.2)		22.2		(0.6)		40.8		52.2		(68.7)		93.0
Net Realized Investment Gains (Losses)	11.0		1.5		21.7		10.1		19.2		13.8		12.5		33.0
Impairment Losses	(4.9)		(8.9)		(3.2)		(0.6)		(3.2)		(4.0)		(13.8)		(7.2)
Acquisition Related Transaction, Integration and Other Costs	(9.9)		(4.7)		(9.1)		(8.1)		(10.4)		(16.3)		(14.6)		(26.7)
Loss from Early Extinguishment of Debt	—		(3.7)		—		—		—		—		(3.7)		—
Income (Loss) before Income Taxes	$	(97.7)	$	(126.5)	$	(147.4)	$	(129.8)	$	(89.7)	$	121.6	$	(224.2)	$	31.9
Segment Net Operating Income (Loss):
Specialty Property & Casualty Insurance	$	(38.9)	$	(44.7)	$	(125.2)	$	(59.3)	$	(91.7)	$	80.1	$	(83.6)	$	(11.6)
Preferred Property & Casualty Insurance	(16.8)		(6.1)		(7.4)		(6.4)		(8.3)		9.6		(22.9)		1.3
Life & Health Insurance	17.7		3.1		5.1		2.8		13.0		7.3		20.8		20.3
Total Segment Net Operating Income (Loss)	(38.0)		(47.7)		(127.5)		(62.9)		(87.0)		97.0		(85.7)		10.0
Corporate and Other Net Operating Income (Loss) From:
Other	(1.7)		(12.4)		(3.3)		(12.9)		(12.4)		(9.8)		(14.1)		(22.2)
Corporate and Other Net Operating Income (Loss)	(1.7)		(12.4)		(3.3)		(12.9)		(12.4)		(9.8)		(14.1)		(22.2)
Adjusted Consolidated Net Operating Income (Loss)	(39.7)		(60.1)		(130.8)		(75.8)		(99.4)		87.2		(99.8)		(12.2)
Net Income (Loss) From:
Change in Fair Value of Equity and Convertible Securities	(32.0)		(22.3)		17.5		(0.5)		32.3		41.2		(54.3)		73.5
Net Realized Investment Gains (Losses)	8.7		1.2		17.2		7.9		15.2		10.9		9.9		26.1
Impairment Losses	(3.9)		(7.0)		(2.5)		(0.5)		(2.5)		(3.2)		(10.9)		(5.7)
Acquisition Related Transaction, Integration and Other Costs	(7.8)		(3.7)		(7.2)		(6.4)		(8.2)		(12.9)		(11.5)		(21.1)
Loss from Early Extinguishment of Debt	—		(2.9)		—		—		—		—		(2.9)		—
Net Income (Loss)	$	(74.7)	$	(94.8)	$	(105.8)	$	(75.3)	$	(62.6)	$	123.2	$	(169.5)	$	60.6

12

Kemper Corporation

Catastrophe Frequency and Severity

(Dollars in Millions)

(Unaudited)

	Six Months Ended June 30, 2022
	Specialty Property & Casualty Insurance Segment			Preferred Property & Casualty Insurance Segment			Life & Health Insurance Segment			Consolidated
	Number of Events	Losses and LAE		Number of Events	Losses and LAE		Number of Events	Losses and LAE		Number of Events	Losses and LAE
Range of Losses and LAE Per Event1:
Below $5	27	$	8.3	33	$	34.9	25	$	1.0	34	$	44.2
$5 - $10	—	—		—	—		—	—		—	—
$10 - $15	—	—		—	—		—	—		—	—
$15 - $20	—	—		—	—		—	—		—	—
$20 - $25	—	—		—	—		—	—		—	—
Greater Than $25	—	—		—	—		—	—		—	—
Total	27	$	8.3	33	$	34.9	25	$	1.0	34	$	44.2
	Six Months Ended June 30, 2021
	Specialty Property & Casualty Insurance Segment			Preferred Property & Casualty Insurance Segment			Life & Health Insurance Segment			Consolidated
	Number of Events	Losses and LAE		Number of Events	Losses and LAE		Number of Events	Losses and LAE		Number of Events	Losses and LAE
Range of Losses and LAE Per Event1:
Below $5	25	$	9.8	26	$	22.3	23	$	4.4	28	$	32.2
$5 - $10	—	—		2	10.8		—	—		2	14.0
$10 - $15	—	—		—	—		—	—		—	—
$15 - $20	—	—		1	15.1		—	—		1	16.2
$20 - $25	—	—		—	—		—	—		—	—
Greater Than $25	—	—		—	—		—	—		—	—
Total	25	$	9.8	29	$	48.2	23	$	4.4	31	$	62.4
1 Current accident year net incurred catastrophe Losses and LAE only

13

Kemper Corporation

Specialty Property & Casualty Insurance Segment

Results of Operations and Selected Financial Information

(Dollars in Millions)

(Unaudited)

	Three Months Ended																		Six Months Ended
	Jun 30, 2022			Mar 31, 2022			Dec 31, 2021			Sep 30, 2021			Jun 30, 2021			Mar 31, 2021			Jun 30, 2022			Jun 30, 2021
Results of Operations
Net Premiums Written	$	1,019.9		$	1,023.7		$	979.0		$	1,024.3		$	1,082.0		$	972.0		$	2,043.6		$	2,054.0
Total Specialty P&C
Personal Automobile	905.8			901.7			918.1			920.6			909.6			785.4			1,807.5			1,695.0
Commercial Automobile	137.9			119.9			114.2			107.7			100.7			92.2			257.8			192.9
Earned Premium	$	1,043.7		$	1,021.6		$	1,032.3		$	1,028.3		$	1,010.3		$	877.6		$	2,065.3		$	1,887.9
Net Investment Income	34.0			34.9			37.8			37.0			42.7			35.0			68.9			77.7
Change in Value of Alternative Energy Partnership Investments	(2.5)			(8.4)			(6.7)			(11.3)			(3.7)			(7.3)			(10.9)			(11.0)
Other Income	1.0			1.7			1.0			1.2			1.0			0.9			2.7			1.9
Total Revenues	1,076.2			1,049.8			1,064.4			1,055.2			1,050.3			906.2			2,126.0			1,956.5
Incurred Losses and LAE related to:
Current Year:
Non-catastrophe Losses and LAE	930.2			911.7			1,028.5			924.4			877.4			650.0			1,841.9			1,527.4
Catastrophe Losses and LAE	6.2			2.1			2.5			3.4			8.1			1.7			8.3			9.8
Prior Years:
Non-catastrophe Losses and LAE	(14.4)			(3.8)			(7.6)			25.1			81.3			(1.4)			(18.2)			79.9
Catastrophe Losses and LAE	(0.2)			0.7			—			(0.1)			—			0.4			0.5			0.4
Total Incurred Losses and LAE	921.8			910.7			1,023.4			952.8			966.8			650.7			1,832.5			1,617.5
Insurance Expenses	205.4			199.3			204.4			194.2			205.6			170.3			404.7			375.9
Operating Income (Loss)	(51.0)			(60.2)			(163.4)			(91.8)			(122.1)			85.2			(111.2)			(36.9)
Income Tax Benefit (Expense)	12.1			15.5			38.2			32.5			30.4			(5.1)			27.6			25.3
Segment Net Operating Income (Loss)	$	(38.9)		$	(44.7)		$	(125.2)		$	(59.3)		$	(91.7)		$	80.1		$	(83.6)		$	(11.6)
Ratios Based On Earned Premiums
Current Year Non-catastrophe Losses and LAE Ratio	89.1		%	89.2		%	99.6		%	90.0		%	86.9		%	74.1		%	89.2		%	81.0		%
Current Year Catastrophe Losses and LAE Ratio	0.6			0.2			0.2			0.3			0.8			0.2			0.4			0.5
Prior Years Non-catastrophe Losses and LAE Ratio	(1.4)			(0.4)			(0.7)			2.4			8.0			(0.2)			(0.9)			4.2
Prior Years Catastrophe Losses and LAE Ratio	—			0.1			—			—			—			—			—			—
Total Incurred Loss and LAE Ratio	88.3			89.1			99.1			92.7			95.7			74.1			88.7			85.7
Insurance Expense Ratio	19.7			19.5			19.8			18.9			20.4			19.4			19.6			19.9
Combined Ratio	108.0		%	108.6		%	118.9		%	111.6		%	116.1		%	93.5		%	108.3		%	105.6		%
Underlying Combined Ratio 1
Current Year Non-catastrophe Losses and LAE Ratio	89.1		%	89.2		%	99.6		%	90.0		%	86.9		%	74.1		%	89.2		%	81.0		%
Insurance Expense Ratio	19.7			19.5			19.8			18.9			20.4			19.4			19.6			19.9
Underlying Combined Ratio	108.8		%	108.7		%	119.4		%	108.9		%	107.3		%	93.5		%	108.8		%	100.9		%
Non-GAAP Measure Reconciliation
Combined Ratio as Reported	108.0		%	108.6		%	118.9		%	111.6		%	116.1		%	93.5		%	108.3		%	105.6		%
Less:
Current Year Catastrophe Losses and LAE Ratio	0.6			0.2			0.2			0.3			0.8			0.2			0.4			0.5
Prior Years Non-catastrophe Losses and LAE Ratio	(1.4)			(0.4)			(0.7)			2.4			8.0			(0.2)			(0.9)			4.2
Prior Years Catastrophe Losses and LAE Ratio	—			0.1			—			—			—			—			—			—
Underlying Combined Ratio	108.8		%	108.7		%	119.4		%	108.9		%	107.3		%	93.5		%	108.8		%	100.9		%
1 Underlying Combined Ratio is a non-GAAP measure, which is computed as the difference between three operating ratios: the combined ratio, the effect of catastrophes (excluding development of prior-year catastrophes) on the combined ratio and the effect of prior-year reserve development at the reporting date (including development on prior-year catastrophes) on the combined ratio.

14

Kemper Corporation

Specialty Property & Casualty Insurance Segment

Results of Operations and Selected Financial Information (continued)

(Dollars in Millions)

(Unaudited)

	Jun 30, 2022		Mar 31, 2022		Dec 31, 2021		Sep 30, 2021		Jun 30, 2021		Mar 31, 2021
Insurance Reserves:
Non-Standard Automobile	$	1,915.2	$	1,952.3	$	1,985.8	$	1,841.1	$	1,703.1	$	1,304.7
Commercial Automobile	385.9		356.5		333.9		302.4		281.6		257.2
Insurance Reserves	$	2,301.1	$	2,308.8	$	2,319.7	$	2,143.5	$	1,984.7	$	1,561.9
Insurance Reserves:
Loss and Allocated LAE Reserves:
Case and Allocated LAE	$	1,151.0	$	1,166.0	$	1,157.9	$	1,071.1	$	1,005.8	$	799.7
Incurred but Not Reported	940.4		934.0		953.0		881.6		810.2		614.1
Total Loss Reserves	2,091.4		2,100.0		2,110.9		1,952.7		1,816.0		1,413.8
Unallocated LAE Reserves	209.7		208.8		208.8		190.8		168.7		148.1
Insurance Reserves	$	2,301.1	$	2,308.8	$	2,319.7	$	2,143.5	$	1,984.7	$	1,561.9

15

Kemper Corporation

Specialty Property & Casualty Insurance Segment

Personal Automobile Insurance - Results of Operations and Selected Financial Information

(Dollars in Millions)

(Unaudited)

	Three Months Ended																		Six Months Ended
	Jun 30, 2022			Mar 31, 2022			Dec 31, 2021			Sep 30, 2021			Jun 30, 2021			Mar 31, 2021			Jun 30, 2022			Jun 30, 2021
Results of Operations
Net Premiums Written	$	852.3		$	884.8		$	858.7		$	902.7		$	964.3		$	861.5		$	1,737.1		$	1,825.8
Earned Premiums	$	905.8		$	901.7		$	918.1		$	920.6		$	909.6		$	785.4		$	1,807.5		$	1,695.0
Net Investment Income	26.6			27.2			31.5			30.9			35.4			29.1			53.8			64.5
Change in Value of Alternative Energy Partnership Investments	(1.8)			(6.0)			(5.3)			(8.9)			(2.9)			(5.8)			(7.8)			(8.7)
Other Income	1.0			1.7			1.0			1.2			1.0			0.9			2.7			1.9
Total Revenues	931.6			924.6			945.3			943.8			943.1			809.6			1,856.2			1,752.7
Incurred Losses and LAE related to:
Current Year:
Non-catastrophe Losses and LAE	828.6			827.7			938.5			843.9			805.1			586.4			1,656.3			1,391.5
Catastrophe Losses and LAE	5.8			2.0			2.3			3.1			7.4			1.6			7.8			9.0
Prior Years:
Non-catastrophe Losses and LAE	(16.5)			(9.0)			(11.7)			25.1			76.0			(4.4)			(25.5)			71.6
Catastrophe Losses and LAE	(0.2)			0.7			—			(0.1)			—			0.4			0.5			0.4
Total Incurred Losses and LAE	817.7			821.4			929.1			872.0			888.5			584.0			1,639.1			1,472.5
Insurance Expenses	179.7			177.3			184.3			176.0			187.7			155.3			357.0			343.0
Operating Income (Loss)	(65.8)			(74.1)			(168.1)			(104.2)			(133.1)			70.3			(139.9)			(62.8)
Income Benefit (Expense)	14.9			17.7			38.4			32.4			31.8			(4.6)			32.6			27.2
Total Product Line Net Operating Income (Loss)	$	(50.9)		$	(56.4)		$	(129.7)		$	(71.8)		$	(101.3)		$	65.7		$	(107.3)		$	(35.6)
Ratios Based On Earned Premiums
Current Year Non-catastrophe Losses and LAE Ratio	91.5		%	91.8		%	102.2		%	91.7		%	88.5		%	74.7		%	91.7		%	82.2		%
Current Year Catastrophe Losses and LAE Ratio	0.6			0.2			0.3			0.3			0.8			0.2			0.4			0.5
Prior Years Non-catastrophe Losses and LAE Ratio	(1.8)			(1.0)			(1.3)			2.7			8.4			(0.6)			(1.4)			4.2
Prior Years Catastrophe Losses and LAE Ratio	—			0.1			—			—			—			0.1			—			—
Total Incurred Loss and LAE Ratio	90.3			91.1			101.2			94.7			97.7			74.4			90.7			86.9
Insurance Expense Ratio	19.8			19.7			20.1			19.1			20.6			19.8			19.8			20.2
Combined Ratio	110.1		%	110.8		%	121.3		%	113.8		%	118.3		%	94.2		%	110.5		%	107.1		%
Underlying Combined Ratio 1
Current Year Non-catastrophe Losses and LAE Ratio	91.5		%	91.8		%	102.2		%	91.7		%	88.5		%	74.7		%	91.7		%	82.2		%
Insurance Expense Ratio	19.8			19.7			20.1			19.1			20.6			19.8			19.8			20.2
Underlying Combined Ratio	111.3		%	111.5		%	122.3		%	110.8		%	109.1		%	94.5		%	111.5		%	102.4		%
Non-GAAP Measure Reconciliation
Combined Ratio	110.1		%	110.8		%	121.3		%	113.8		%	118.3		%	94.2		%	110.5		%	107.1		%
Less:
Current Year Catastrophe Losses and LAE Ratio	0.6			0.2			0.3			0.3			0.8			0.2			0.4			0.5
Prior Years Non-catastrophe Losses and LAE Ratio	(1.8)			(1.0)			(1.3)			2.7			8.4			(0.6)			(1.4)			4.2
Prior Years Catastrophe Losses and LAE Ratio	—			0.1			—			—			—			0.1			—			—
Underlying Combined Ratio	111.3		%	111.5		%	122.3		%	110.8		%	109.1		%	94.5		%	111.5		%	102.4		%
1 Underlying Combined Ratio is a non-GAAP measure, which is computed as the difference between three operating ratios: the combined ratio, the effect of catastrophes (excluding development of prior-year catastrophes) on the combined ratio and the effect of prior-year reserve development at the reporting date (including development on prior-year catastrophes) on the combined ratio.

16

Kemper Corporation

Specialty Property & Casualty Insurance Segment

Commercial Automobile Insurance - Results of Operations and Selected Financial Information

(Dollars in Millions)

(Unaudited)

	Three Months Ended																		Six Months Ended
	Jun 30, 2022			Mar 31, 2022			Dec 31, 2021			Sep 30, 2021			Jun 30, 2021			Mar 31, 2021			Jun 30, 2022			Jun 30, 2021
Results of Operations
Net Premiums Written	$	167.6		$	138.9		$	120.3		$	121.6		$	117.7		$	110.5		$	306.5		$	228.2
Earned Premiums	$	137.9		$	119.9		$	114.2		$	107.7		$	100.7		$	92.2		$	257.8		$	192.9
Net Investment Income	7.4			7.7			6.3			6.1			7.3			5.9			15.1			13.2
Change in Value of Alternative Energy Partnership Investments	(0.7)			(2.4)			(1.4)			(2.4)			(0.8)			(1.5)			(3.1)			(2.3)
Total Revenues	144.6			125.2			119.1			111.4			107.2			96.6			269.8			203.8
Incurred Losses and LAE related to:
Current Year:
Non-catastrophe Losses and LAE	101.6			84.0			90.0			80.5			72.3			63.6			185.6			135.9
Catastrophe Losses and LAE	0.4			0.1			0.2			0.3			0.7			0.1			0.5			0.8
Prior Years:
Non-catastrophe Losses and LAE	2.1			5.2			4.1			—			5.3			3.0			7.3			8.3
Catastrophe Losses and LAE	—			—			—			—			—			—			—			—
Total Incurred Losses and LAE	104.1			89.3			94.3			80.8			78.3			66.7			193.4			145.0
Insurance Expenses	25.7			22.0			20.1			18.2			17.9			15.0			47.7			32.9
Operating Income (Loss)	14.8			13.9			4.7			12.4			11.0			14.9			28.7			25.9
Income Tax Benefit (Expense)	(2.8)			(2.2)			(0.2)			0.1			(1.4)			(0.5)			(5.0)			(1.9)
Total Product Line Net Operating Income (Loss)	$	12.0		$	11.7		$	4.5		$	12.5		$	9.6		$	14.4		$	23.7		$	24.0
Ratios Based On Earned Premiums
Current Year Non-catastrophe Losses and LAE Ratio	73.7		%	70.1		%	78.8		%	74.7		%	71.8		%	68.9		%	72.0		%	70.5		%
Current Year Catastrophe Losses and LAE Ratio	0.3			0.1			0.2			0.3			0.7			0.1			0.2			0.4
Prior Years Non-catastrophe Losses and LAE Ratio	1.5			4.3			3.6			—			5.3			3.3			2.8			4.3
Prior Years Catastrophe Losses and LAE Ratio	—			—			—			—			—			—			—			—
Total Incurred Loss and LAE Ratio	75.5			74.5			82.6			75.0			77.8			72.3			75.0			75.2
Insurance Expense Ratio	18.6			18.3			17.6			16.9			17.8			16.3			18.5			17.1
Combined Ratio	94.1		%	92.8		%	100.2		%	91.9		%	95.6		%	88.6		%	93.5		%	92.3		%
Underlying Combined Ratio 1
Current Year Non-catastrophe Losses and LAE Ratio	73.7		%	70.1		%	78.8		%	74.7		%	71.8		%	68.9		%	72.0		%	70.5		%
Insurance Expense Ratio	18.6			18.3			17.6			16.9			17.8			16.3			18.5			17.1
Underlying Combined Ratio	92.3		%	88.4		%	96.4		%	91.6		%	89.6		%	85.2		%	90.5		%	87.6		%
Non-GAAP Measure Reconciliation
Combined Ratio	94.1		%	92.8		%	100.2		%	91.9		%	95.6		%	88.6		%	93.5		%	92.3		%
Less:
Current Year Catastrophe Losses and LAE Ratio	0.3			0.1			0.2			0.3			0.7			0.1			0.2			0.4
Prior Years Non-catastrophe Losses and LAE Ratio	1.5			4.3			3.6			—			5.3			3.3			2.8			4.3
Prior Years Catastrophe Losses and LAE Ratio	—			—			—			—			—			—			—			—
Underlying Combined Ratio	92.3		%	88.4		%	96.4		%	91.6		%	89.6		%	85.2		%	90.5		%	87.6		%
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.

17

Kemper Corporation

Preferred Property & Casualty Insurance Segment

Results of Operations and Selected Financial Information

(Dollars in Millions)

(Unaudited)

	Three Months Ended																		Six Months Ended
	Jun 30, 2022			Mar 31, 2022			Dec 31, 2021			Sep 30, 2021			Jun 30, 2021			Mar 31, 2021			Jun 30, 2022			Jun 30, 2021
Results of Operations
Net Premiums Written	$	141.3		$	137.4		$	153.2		$	164.8		$	169.6		$	154.4		$	278.7		$	324.0
Earned Premiums	$	149.9		$	155.6		$	162.6		$	163.7		$	163.2		$	162.2		$	305.5		$	325.4
Net Investment Income	11.9			12.5			17.1			16.1			19.5			15.9			24.4			35.4
Change in Value of Alternative Energy Partnership Investments	(1.1)			(3.9)			(3.8)			(6.4)			(2.0)			(4.1)			(5.0)			(6.1)
Total Revenues	160.7			164.2			175.9			173.4			180.7			174.0			324.9			354.7
Incurred Losses and LAE related to:
Current Year:
Non-catastrophe Losses and LAE	110.5			112.2			122.4			115.6			116.2			96.2			222.7			212.4
Catastrophe Losses and LAE	23.5			11.4			7.5			23.4			24.2			24.0			34.9			48.2
Prior Years:
Non-catastrophe Losses and LAE	1.8			2.1			8.4			—			5.0			0.1			3.9			5.1
Catastrophe Losses and LAE	(0.8)			(3.2)			(2.0)			0.1			(3.4)			(0.3)			(4.0)			(3.7)
Total Incurred Losses and LAE	135.0			122.5			136.3			139.1			142.0			120.0			257.5			262.0
Insurance Expenses	47.3			51.2			51.6			51.7			52.1			51.0			98.5			103.1
Operating Income (Loss)	(21.6)			(9.5)			(12.0)			(17.4)			(13.4)			3.0			(31.1)			(10.4)
Income Tax Benefit (Expense)	4.8			3.4			4.6			11.0			5.1			6.6			8.2			11.7
Segment Net Operating Income (Loss)	$	(16.8)		$	(6.1)		$	(7.4)		$	(6.4)		$	(8.3)		$	9.6		$	(22.9)		$	1.3
Ratios Based On Earned Premiums
Current Year Non-catastrophe Losses and LAE Ratio	73.7		%	72.2		%	75.2		%	70.6		%	71.2		%	59.3		%	72.9		%	65.2		%
Current Year Catastrophe Losses and LAE Ratio	15.7			7.3			4.6			14.3			14.8			14.8			11.4			14.8
Prior Years Non-catastrophe Losses and LAE Ratio	1.2			1.3			5.2			—			3.1			0.1			1.3			1.6
Prior Years Catastrophe Losses and LAE Ratio	(0.5)			(2.1)			(1.2)			0.1			(2.1)			(0.2)			(1.3)			(1.1)
Total Incurred Loss and LAE Ratio	90.1			78.7			83.8			85.0			87.0			74.0			84.3			80.5
Insurance Expense Ratio	31.6			32.9			31.7			31.6			31.9			31.4			32.2			31.7
Combined Ratio	121.7		%	111.6		%	115.5		%	116.6		%	118.9		%	105.4		%	116.5		%	112.2		%
Underlying Combined Ratio 1
Current Year Non-catastrophe Losses and LAE Ratio	73.7		%	72.2		%	75.2		%	70.6		%	71.2		%	59.3		%	72.9		%	65.2		%
Insurance Expense Ratio	31.6			32.9			31.7			31.6			31.9			31.4			32.2			31.7
Underlying Combined Ratio	105.3		%	105.1		%	106.9		%	102.2		%	103.1		%	90.7		%	105.1		%	96.9		%
Non-GAAP Measure Reconciliation
Combined Ratio as Reported	121.7		%	111.6		%	115.5		%	116.6		%	118.9		%	105.4		%	116.5		%	112.2		%
Less:
Current Year Catastrophe Losses and LAE Ratio	15.7			7.3			4.6			14.3			14.8			14.8			11.4			14.8
Prior Years Non-catastrophe Losses and LAE Ratio	1.2			1.3			5.2			—			3.1			0.1			1.3			1.6
Prior Years Catastrophe Losses and LAE Ratio	(0.5)			(2.1)			(1.2)			0.1			(2.1)			(0.2)			(1.3)			(1.1)
Underlying Combined Ratio	105.3		%	105.1		%	106.9		%	102.2		%	103.1		%	90.7		%	105.1		%	96.9		%
1 Underlying Combined Ratio is a non-GAAP measure, which is computed as the difference between three operating ratios: the combined ratio, the effect of catastrophes (excluding development of prior-year catastrophes) on the combined ratio and the effect of prior-year reserve development at the reporting date (including development on prior-year catastrophes) on the combined ratio.

18

Kemper Corporation

Preferred Property & Casualty Insurance Segment

Results of Operations and Selected Financial Information (continued)

(Dollars in Millions)

(Unaudited)

	Jun 30, 2022		Mar 31, 2022		Dec 31, 2021		Sep 30, 2021		Jun 30, 2021		Mar 31, 2021
Insurance Reserves:
Personal Automobile	$	306.8	$	307.9	$	308.6	$	290.0	$	282.9	$	275.9
Homeowners	100.6		93.1		95.4		108.5		110.7		107.6
Other Personal	31.6		30.6		29.2		30.1		31.0		30.7
Insurance Reserves	$	439.0	$	431.6	$	433.2	$	428.6	$	424.6	$	414.2
Insurance Reserves:
Loss and Allocated LAE Reserves:
Case and Allocated LAE	$	270.0	$	271.1	$	272.5	$	280.8	$	282.3	$	282.0
Incurred but Not Reported	139.9		131.8		131.9		120.4		116.1		105.6
Total Loss Reserves	409.9		402.9		404.4		401.2		398.4		387.6
Unallocated LAE Reserves	29.1		28.7		28.8		27.4		26.2		26.6
Insurance Reserves	$	439.0	$	431.6	$	433.2	$	428.6	$	424.6	$	414.2

19

Kemper Corporation

Preferred Property & Casualty Insurance Segment

Personal Automobile Insurance - Results of Operations and Selected Financial Information

(Dollars in Millions)

(Unaudited)

	Three Months Ended																		Six Months Ended
	Jun 30, 2022			Mar 31, 2022			Dec 31, 2021			Sep 30, 2021			Jun 30, 2021			Mar 31, 2021			Jun 30, 2022			Jun 30, 2021
Results of Operations
Net Premiums Written	$	84.6		$	84.2		$	95.2		$	99.9		$	104.4		$	100.4		$	168.8		$	204.8
Earned Premiums	$	94.0		$	96.0		$	101.4		$	102.6		$	103.5		$	103.0		$	190.0		$	206.5
Net Investment Income	5.8			6.0			7.9			7.4			9.0			7.3			11.8			16.3
Change in Value of Alternative Energy Partnership Investments	(0.5)			(1.9)			(1.7)			(3.0)			(0.9)			(1.9)			(2.4)			(2.8)
Total Revenues	99.3			100.1			107.6			107.0			111.6			108.4			199.4			220.0
Incurred Losses and LAE related to:
Current Year:
Non-catastrophe Losses and LAE	77.8			80.5			96.2			84.8			81.6			67.8			158.3			149.4
Catastrophe Losses and LAE	1.6			0.5			1.3			2.7			2.8			0.6			2.1			3.4
Prior Years:
Non-catastrophe Losses and LAE	—			1.5			7.3			0.1			3.6			1.2			1.5			4.8
Catastrophe Losses and LAE	—			0.1			(0.1)			0.1			(0.2)			0.1			0.1			(0.1)
Total Incurred Losses and LAE	79.4			82.6			104.7			87.7			87.8			69.7			162.0			157.5
Insurance Expenses	28.4			31.2			32.7			32.7			33.6			32.8			59.6			66.4
Operating Income (Loss)	(8.5)			(13.7)			(29.8)			(13.4)			(9.8)			5.9			(22.2)			(3.9)
Income Tax Benefit (Expense)	1.9			3.6			7.2			6.2			3.1			2.1			5.5			5.2
Total Product Line Net Operating Income (Loss)	$	(6.6)		$	(10.1)		$	(22.6)		$	(7.2)		$	(6.7)		$	8.0		$	(16.7)		$	1.3
Ratios Based On Earned Premiums
Current Year Non-catastrophe Losses and LAE Ratio	82.8		%	83.8		%	94.9		%	82.7		%	78.8		%	65.8		%	83.3		%	72.4		%
Current Year Catastrophe Losses and LAE Ratio	1.7			0.5			1.3			2.6			2.7			0.6			1.1			1.6
Prior Years Non-catastrophe Losses and LAE Ratio	—			1.6			7.2			0.1			3.5			1.2			0.8			2.3
Prior Years Catastrophe Losses and LAE Ratio	—			0.1			(0.1)			0.1			(0.2)			0.1			0.1			—
Total Incurred Loss and LAE Ratio	84.5			86.0			103.3			85.5			84.8			67.7			85.3			76.3
Insurance Expense Ratio	30.2			32.5			32.2			31.9			32.5			31.8			31.4			32.2
Combined Ratio	114.7		%	118.5		%	135.5		%	117.4		%	117.3		%	99.5		%	116.7		%	108.5		%
Underlying Combined Ratio 1
Current Year Non-catastrophe Losses and LAE Ratio	82.8		%	83.8		%	94.9		%	82.7		%	78.8		%	65.8		%	83.3		%	72.4		%
Insurance Expense Ratio	30.2			32.5			32.2			31.9			32.5			31.8			31.4			32.2
Underlying Combined Ratio	113.0		%	116.3		%	127.1		%	114.6		%	111.3		%	97.6		%	114.7		%	104.6		%
Non-GAAP Measure Reconciliation
Combined Ratio	114.7		%	118.5		%	135.5		%	117.4		%	117.3		%	99.5		%	116.7		%	108.5		%
Less:
Current Year Catastrophe Losses and LAE Ratio	1.7			0.5			1.3			2.6			2.7			0.6			1.1			1.6
Prior Years Non-catastrophe Losses and LAE Ratio	—			1.6			7.2			0.1			3.5			1.2			0.8			2.3
Prior Years Catastrophe Losses and LAE Ratio	—			0.1			(0.1)			0.1			(0.2)			0.1			0.1			—
Underlying Combined Ratio	113.0		%	116.3		%	127.1		%	114.6		%	111.3		%	97.6		%	114.7		%	104.6		%
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.

20

Kemper Corporation

Preferred Property & Casualty Insurance Segment

Homeowners and Other Personal Insurance - Results of Operations and Selected Financial Information

(Dollars in Millions)

(Unaudited)

	Three Months Ended																		Six Months Ended
	Jun 30, 2022			Mar 31, 2022			Dec 31, 2021			Sep 30, 2021			Jun 30, 2021			Mar 31, 2021			Jun 30, 2022			Jun 30, 2021
Results of Operations
Net Premiums Written	$	56.7		$	53.2		$	58.0		$	64.9		$	65.2		$	54.0		$	109.9		$	119.2
Earned Premiums	$	55.9		$	59.6		$	61.2		$	61.1		$	59.7		$	59.2		$	115.5		$	118.9
Net Investment Income	6.1			6.5			9.2			8.7			10.5			8.6			12.6			19.1
Change in Value of Alternative Energy Partnership Investments	(0.6)			(2.0)			(2.1)			(3.4)			(1.1)			(2.2)			(2.6)			(3.3)
Total Revenues	61.4			64.1			68.3			66.4			69.1			65.6			125.5			134.7
Incurred Losses and LAE related to:
Current Year:
Non-catastrophe Losses and LAE	32.7			31.7			26.2			30.8			34.6			28.4			64.4			63.0
Catastrophe Losses and LAE	21.9			10.9			6.2			20.7			21.4			23.4			32.8			44.8
Prior Years:
Non-catastrophe Losses and LAE	1.8			0.6			1.1			(0.1)			1.4			(1.1)			2.4			0.3
Catastrophe Losses and LAE	(0.8)			(3.3)			(1.9)			—			(3.2)			(0.4)			(4.1)			(3.6)
Total Incurred Losses and LAE	55.6			39.9			31.6			51.4			54.2			50.3			95.5			104.5
Insurance Expenses	18.9			20.0			18.9			19.0			18.5			18.2			38.9			36.7
Operating Income (Loss)	(13.1)			4.2			17.8			(4.0)			(3.6)			(2.9)			(8.9)			(6.5)
Income Tax Benefit (Expense)	2.9			(0.2)			(2.6)			4.8			2.0			4.5			2.7			6.5
Total Product Line Net Operating Income (Loss)	$	(10.2)		$	4.0		$	15.2		$	0.8		$	(1.6)		$	1.6		$	(6.2)		$	—
Ratios Based On Earned Premiums
Current Year Non-catastrophe Losses and LAE Ratio	58.5		%	53.1		%	42.8		%	50.4		%	58.1		%	48.1		%	55.7		%	52.9		%
Current Year Catastrophe Losses and LAE Ratio	39.2			18.3			10.1			33.9			35.8			39.5			28.4			37.7
Prior Years Non-catastrophe Losses and LAE Ratio	3.2			1.0			1.8			(0.2)			2.3			(1.9)			2.1			0.3
Prior Years Catastrophe Losses and LAE Ratio	(1.4)			(5.5)			(3.1)			—			(5.4)			(0.7)			(3.5)			(3.0)
Total Incurred Loss and LAE Ratio	99.5			66.9			51.6			84.1			90.8			85.0			82.7			87.9
Insurance Expense Ratio	33.8			33.6			30.9			31.1			31.0			30.7			33.7			30.9
Combined Ratio	133.3		%	100.5		%	82.5		%	115.2		%	121.8		%	115.7		%	116.4		%	118.8		%
Underlying Combined Ratio 1
Current Year Non-catastrophe Losses and LAE Ratio	58.5		%	53.1		%	42.8		%	50.4		%	58.1		%	48.1		%	55.7		%	52.9		%
Insurance Expense Ratio	33.8			33.6			30.9			31.1			31.0			30.7			33.7			30.9
Underlying Combined Ratio	92.3		%	86.7		%	73.7		%	81.5		%	89.1		%	78.8		%	89.4		%	83.8		%
Non-GAAP Measure Reconciliation
Combined Ratio	133.3		%	100.5		%	82.5		%	115.2		%	121.8		%	115.7		%	116.4		%	118.8		%
Less:
Current Year Catastrophe Losses and LAE Ratio	39.2			18.3			10.1			33.9			35.8			39.5			28.4			37.7
Prior Years Non-catastrophe Losses and LAE Ratio	3.2			1.0			1.8			(0.2)			2.3			(1.9)			2.1			0.3
Prior Years Catastrophe Losses and LAE Ratio	(1.4)			(5.5)			(3.1)			—			(5.4)			(0.7)			(3.5)			(3.0)
Underlying Combined Ratio	92.3		%	86.7		%	73.7		%	81.5		%	89.1		%	78.8		%	89.4		%	83.8		%
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.

21

Kemper Corporation

Preferred 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, 2022			Mar 31, 2022			Dec 31, 2021			Sep 30, 2021			Jun 30, 2021			Mar 31, 2021			Jun 30, 2022			Jun 30, 2021
Results of Operations
Net Premiums Written	$	49.2		$	45.5		$	49.9		$	56.1		$	56.3		$	46.1		$	94.7		$	102.4
Earned Premiums	$	47.7		$	51.3		$	52.7		$	52.5		$	51.3		$	50.8		$	99.0		$	102.1
Net Investment Income	5.1			5.4			8.3			7.9			9.6			7.8			10.5			17.4
Change in Value of Alternative Energy Partnership Investments	(0.5)			(1.7)			(1.9)			(3.1)			(1.0)			(2.0)			(2.2)			(3.0)
Total Revenues	52.3			55.0			59.1			57.3			59.9			56.6			107.3			116.5
Incurred Losses and LAE related to:
Current Year:
Non-catastrophe Losses and LAE	28.6			27.5			22.8			26.6			30.5			24.2			56.1			54.7
Catastrophe Losses and LAE	21.3			10.8			6.0			20.4			21.8			22.0			32.1			43.8
Prior Years:
Non-catastrophe Losses and LAE	(0.1)			(1.6)			(0.1)			(0.2)			0.2			(2.5)			(1.7)			(2.3)
Catastrophe Losses and LAE	(0.8)			(2.8)			(2.1)			0.1			(1.8)			(0.1)			(3.6)			(1.9)
Total Incurred Losses and LAE	49.0			33.9			26.6			46.9			50.7			43.6			82.9			94.3
Insurance Expenses	16.3			17.5			16.3			16.3			16.1			15.7			33.8			31.8
Operating Income (Loss)	(13.0)			3.6			16.2			(5.9)			(6.9)			(2.7)			(9.4)			(9.6)
Income Tax Benefit (Expense)	2.9			(0.2)			(2.4)			4.8			2.6			4.1			2.7			6.7
Total Product Line Net Operating Income (Loss)	$	(10.1)		$	3.4		$	13.8		$	(1.1)		$	(4.3)		$	1.4		$	(6.7)		$	(2.9)
Ratios Based On Earned Premiums
Current Year Non-catastrophe Losses and LAE Ratio	59.9		%	53.6		%	43.3		%	50.6		%	59.4		%	47.6		%	56.6		%	53.7		%
Current Year Catastrophe Losses and LAE Ratio	44.7			21.1			11.4			38.9			42.5			43.3			32.4			42.9
Prior Years Non-catastrophe Losses and LAE Ratio	(0.2)			(3.1)			(0.2)			(0.4)			0.4			(4.9)			(1.7)			(2.3)
Prior Years Catastrophe Losses and LAE Ratio	(1.7)			(5.5)			(4.0)			0.2			(3.5)			(0.2)			(3.6)			(1.9)
Total Incurred Loss and LAE Ratio	102.7			66.1			50.5			89.3			98.8			85.8			83.7			92.4
Insurance Expense Ratio	34.2			34.1			30.9			31.0			31.4			30.9			34.1			31.1
Combined Ratio	136.9		%	100.2		%	81.4		%	120.3		%	130.2		%	116.7		%	117.8		%	123.5		%
Underlying Combined Ratio 1
Current Year Non-catastrophe Losses and LAE Ratio	59.9		%	53.6		%	43.3		%	50.6		%	59.4		%	47.6		%	56.6		%	53.7		%
Insurance Expense Ratio	34.2			34.1			30.9			31.0			31.4			30.9			34.1			31.1
Underlying Combined Ratio	94.1		%	87.7		%	74.2		%	81.6		%	90.8		%	78.5		%	90.7		%	84.8		%
Non-GAAP Measure Reconciliation
Combined Ratio	136.9		%	100.2		%	81.4		%	120.3		%	130.2		%	116.7		%	117.8		%	123.5		%
Less:
Current Year Catastrophe Losses and LAE Ratio	44.7			21.1			11.4			38.9			42.5			43.3			32.4			42.9
Prior Years Non-catastrophe Losses and LAE Ratio	(0.2)			(3.1)			(0.2)			(0.4)			0.4			(4.9)			(1.7)			(2.3)
Prior Years Catastrophe Losses and LAE Ratio	(1.7)			(5.5)			(4.0)			0.2			(3.5)			(0.2)			(3.6)			(1.9)
Underlying Combined Ratio	94.1		%	87.7		%	74.2		%	81.6		%	90.8		%	78.5		%	90.7		%	84.8		%
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.

22

Kemper Corporation

Preferred Property & Casualty Insurance Segment

Other Personal Insurance - Results of Operations and Selected Financial Information

(Dollars in Millions)

(Unaudited)

	Three Months Ended																		Six Months Ended
	Jun 30, 2022			Mar 31, 2022			Dec 31, 2021			Sep 30, 2021			Jun 30, 2021			Mar 31, 2021			Jun 30, 2022			Jun 30, 2021
Results of Operations
Net Premiums Written	$	7.5		$	7.7		$	8.1		$	8.8		$	8.9		$	7.9		$	15.2		$	16.8
Earned Premiums	$	8.2		$	8.3		$	8.5		$	8.6		$	8.4		$	8.4		$	16.5		$	16.8
Net Investment Income	1.0			1.1			0.9			0.8			0.9			0.8			2.1			1.7
Change in Value of Alternative Energy Partnership Investments	(0.1)			(0.3)			(0.2)			(0.3)			(0.1)			(0.2)			(0.4)			(0.3)
Total Revenues	9.1			9.1			9.2			9.1			9.2			9.0			18.2			18.2
Incurred Losses and LAE related to:
Current Year:
Non-catastrophe Losses and LAE	4.1			4.2			3.4			4.2			4.1			4.2			8.3			8.3
Catastrophe Losses and LAE	0.6			0.1			0.2			0.3			(0.4)			1.4			0.7			1.0
Prior Years:
Non-catastrophe Losses and LAE	1.9			2.2			1.2			0.1			1.2			1.4			4.1			2.6
Catastrophe Losses and LAE	—			(0.5)			0.2			(0.1)			(1.4)			(0.3)			(0.5)			(1.7)
Total Incurred Losses and LAE	6.6			6.0			5.0			4.5			3.5			6.7			12.6			10.2
Insurance Expenses	2.6			2.5			2.6			2.7			2.4			2.5			5.1			4.9
Operating Income (Loss)	(0.1)			0.6			1.6			1.9			3.3			(0.2)			0.5			3.1
Income Tax Benefit (Expense)	—			—			(0.2)			—			(0.6)			0.4			—			(0.2)
Total Product Line Net Operating Income (Loss)	$	(0.1)		$	0.6		$	1.4		$	1.9		$	2.7		$	0.2		$	0.5		$	2.9
Ratios Based On Earned Premiums
Current Year Non-catastrophe Losses and LAE Ratio	50.0		%	50.6		%	39.9		%	48.8		%	48.9		%	50.0		%	50.4		%	49.3		%
Current Year Catastrophe Losses and LAE Ratio	7.3			1.2			2.4			3.5			(4.8)			16.7			4.2			6.0
Prior Years Non-catastrophe Losses and LAE Ratio	23.2			26.5			14.1			1.2			14.3			16.7			24.8			15.5
Prior Years Catastrophe Losses and LAE Ratio	—			(6.0)			2.4			(1.2)			(16.7)			(3.6)			(3.0)			(10.1)
Total Incurred Loss and LAE Ratio	80.5			72.3			58.8			52.3			41.7			79.8			76.4			60.7
Insurance Expense Ratio	31.7			30.1			30.6			31.4			28.6			29.8			30.9			29.2
Combined Ratio	112.2		%	102.4		%	89.4		%	83.7		%	70.3		%	109.6		%	107.3		%	89.9		%
Underlying Combined Ratio 1
Current Year Non-catastrophe Losses and LAE Ratio	50.0		%	50.6		%	39.9		%	48.8		%	48.9		%	50.0		%	50.4		%	49.3		%
Insurance Expense Ratio	31.7			30.1			30.6			31.4			28.6			29.8			30.9			29.2
Underlying Combined Ratio	81.7		%	80.7		%	70.5		%	80.2		%	77.5		%	79.8		%	81.3		%	78.5		%
Non-GAAP Measure Reconciliation
Combined Ratio	112.2		%	102.4		%	89.4		%	83.7		%	70.3		%	109.6		%	107.3		%	89.9		%
Less:
Current Year Catastrophe Losses and LAE Ratio	7.3			1.2			2.4			3.5			(4.8)			16.7			4.2			6.0
Prior Years Non-catastrophe Losses and LAE Ratio	23.2			26.5			14.1			1.2			14.3			16.7			24.8			15.5
Prior Years Catastrophe Losses and LAE Ratio	—			(6.0)			2.4			(1.2)			(16.7)			(3.6)			(3.0)			(10.1)
Underlying Combined Ratio	81.7		%	80.7		%	70.5		%	80.2		%	77.5		%	79.8		%	81.3		%	78.5		%
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.

23

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, 2022		Mar 31, 2022		Dec 31, 2021		Sep 30, 2021		Jun 30, 2021		Mar 31, 2021		Jun 30, 2022		Jun 30, 2021
Results of Operations
Earned Premiums	$	160.1	$	161.4	$	164.2	$	164.1	$	164.2	$	161.0	$	321.5	$	325.2
Net Investment Income	61.9		49.4		50.8		48.4		52.4		51.1		111.3		103.5
Change in Value of Alternative Energy Partnership Investments	(1.3)		(4.4)		(3.7)		(6.1)		(2.0)		(4.0)		(5.7)		(6.0)
Other Income	(0.8)		—		(1.6)		0.1		0.1		0.1		(0.8)		0.2
Total Revenues	219.9		206.4		209.7		206.5		214.7		208.2		426.3		422.9
Policyholders’ Benefits and Incurred Losses and LAE	113.5		120.1		116.2		119.5		115.3		118.7		233.6		234.0
Insurance Expenses	85.6		85.1		89.5		92.9		86.2		90.3		170.7		176.5
Operating Income (Loss)	20.8		1.2		4.0		(5.9)		13.2		(0.8)		22.0		12.4
Income Tax Benefit (Expense)	(3.1)		1.9		1.1		8.7		(0.2)		8.1		(1.2)		7.9
Segment Net Operating Income (Loss)	$	17.7	$	3.1	$	5.1	$	2.8	$	13.0	$	7.3	$	20.8	$	20.3

	Jun 30, 2022		Mar 31, 2022		Dec 31, 2021		Sep 30, 2021		Jun 30, 2021		Mar 31, 2021
Insurance Reserves:
Future Policyholder Benefits	$	3,486.3	$	3,467.5	$	3,454.1	$	3,436.1	$	3,466.4	$	3,448.0
Incurred Losses and LAE Reserves:
Life	56.7		63.6		60.7		62.3		58.8		68.1
Accident and Health	25.0		25.2		26.1		25.7		26.4		25.5
Property	3.1		3.1		3.6		7.4		4.4		5.4
Total Incurred Losses and LAE Reserves	84.8		91.9		90.4		95.4		89.6		99.0
Insurance Reserves	$	3,571.1	$	3,559.4	$	3,544.5	$	3,531.5	$	3,556.0	$	3,547.0

24

Kemper Corporation

Life & Health Insurance Segment

Life Insurance - Results of Operations and Selected Financial Information

(Dollars in Millions)

(Unaudited)

	Three Months Ended												Six Months Ended
	Jun 30, 2022		Mar 31, 2022		Dec 31, 2021		Sep 30, 2021		Jun 30, 2021		Mar 31, 2021		Jun 30, 2022		Jun 30, 2021
Results of Operations
Earned Premiums	$	102.9	$	101.3	$	101.5	$	101.5	$	100.6	$	98.1	$	204.2	$	198.7
Net Investment Income	60.1		47.9		49.3		47.0		50.9		49.6		108.0		100.5
Change in Value of Alternative Energy Partnership Investments	(1.3)		(4.0)		(3.5)		(5.8)		(1.9)		(3.8)		(5.3)		(5.7)
Other Income	(1.1)		—		(1.6)		—		—		—		(1.1)		—
Total Revenues	160.6		145.2		145.7		142.7		149.6		143.9		305.8		293.5
Policyholders’ Benefits and Incurred Losses and LAE	84.1		90.6		88.2		87.3		81.9		87.9		174.7		169.8
Insurance Expenses	58.9		57.4		60.5		61.5		55.6		58.0		116.3		113.6
Operating Income (Loss)	17.6		(2.8)		(3.0)		(6.1)		12.1		(2.0)		14.8		10.1
Income Tax Benefit (Expense)	(2.4)		2.6		2.4		8.4		(0.1)		8.0		0.2		7.9
Total Product Line Operating Income (Loss)	$	15.2	$	(0.2)	$	(0.6)	$	2.3	$	12.0	$	6.0	$	15.0	$	18.0

Kemper Corporation

Life & Health Insurance Segment

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

(Dollars in Millions)

(Unaudited)

	Three Months Ended												Six Months Ended
	Jun 30, 2022		Mar 31, 2022		Dec 31, 2021		Sep 30, 2021		Jun 30, 2021		Mar 31, 2021		Jun 30, 2022		Jun 30, 2021
Results of Operations
Earned Premiums	$	45.1	$	45.8	$	47.6	$	47.0	$	47.9	$	47.4	$	90.9	$	95.3
Net Investment Income	1.0		0.7		0.9		0.9		0.8		1.0		1.7		1.8
Change in Value of Alternative Energy Partnership Investments	—		(0.1)		(0.1)		(0.1)		—		(0.1)		(0.1)		(0.1)
Other Income	0.3		—		—		0.1		0.1		0.1		0.3		0.2
Total Revenues	46.4		46.4		48.4		47.9		48.8		48.4		92.8		97.2
Policyholders’ Benefits and Incurred Losses and LAE	24.5		23.5		21.9		22.9		26.8		24.5		48.0		51.3
Insurance Expenses	20.1		20.8		21.5		23.5		22.2		24.4		40.9		46.6
Operating Income (Loss)	1.8		2.1		5.0		1.5		(0.2)		(0.5)		3.9		(0.7)
Income Tax Benefit (Expense)	(0.4)		(0.4)		(1.0)		(0.2)		0.1		0.2		(0.8)		0.3
Total Product Line Net Operating Income (Loss)	$	1.4	$	1.7	$	4.0	$	1.3	$	(0.1)	$	(0.3)	$	3.1	$	(0.4)

25

Kemper Corporation

Life & Health Insurance Segment

Property Insurance - Results of Operations and Selected Financial Information

(Dollars in Millions)

(Unaudited)

	Three Months Ended																		Six Months Ended
	Jun 30, 2022			Mar 31, 2022			Dec 31, 2021			Sep 30, 2021			Jun 30, 2021			Mar 31, 2021			Jun 30, 2022			Jun 30, 2021
Results of Operations
Earned Premiums	$	12.1		$	14.3		$	15.1		$	15.6		$	15.7		$	15.5		$	26.4		$	31.2
Net Investment Income	0.8			0.8			0.6			0.5			0.7			0.5			1.6			1.2
Change in Value of Alternative Energy Partnership Investments	—			(0.3)			(0.1)			(0.2)			(0.1)			(0.1)			(0.3)			(0.2)
Total Revenues	12.9			14.8			15.6			15.9			16.3			15.9			27.7			32.2
Incurred Losses and LAE related to:
Current Year:
Non-catastrophe Losses and LAE	3.6			4.1			3.2			3.6			4.2			3.2			7.7			7.4
Catastrophe Losses and LAE	0.6			0.4			2.9			5.7			2.5			1.9			1.0			4.4
Prior Years:
Non-catastrophe Losses and LAE	0.5			0.6			—			0.4			0.1			0.7			1.1			0.8
Catastrophe Losses and LAE	0.2			0.9			—			(0.4)			(0.2)			0.5			1.1			0.3
Total Incurred Losses and LAE	4.9			6.0			6.1			9.3			6.6			6.3			10.9			12.9
Insurance Expenses	6.6			6.9			7.5			7.9			8.4			7.9			13.5			16.3
Operating Income (Loss)	1.4			1.9			2.0			(1.3)			1.3			1.7			3.3			3.0
Income Tax Benefit (Expense)	(0.3)			(0.3)			(0.3)			0.5			(0.2)			(0.1)			(0.6)			(0.3)
Total Product Line Net Operating Income (Loss)	$	1.1		$	1.6		$	1.7		$	(0.8)		$	1.1		$	1.6		$	2.7		$	2.7
Ratios Based On Earned Premiums
Current Year Non-catastrophe Losses and LAE Ratio	29.7		%	28.7		%	21.2		%	23.1		%	26.8		%	20.6		%	29.1		%	23.6		%
Current Year Catastrophe Losses and LAE Ratio	5.0			2.8			19.2			36.5			15.9			12.3			3.8			14.1
Prior Years Non-catastrophe Losses and LAE Ratio	4.1			4.2			—			2.6			0.6			4.5			4.2			2.6
Prior Years Catastrophe Losses and LAE Ratio	1.7			6.3			—			(2.6)			(1.3)			3.2			4.2			1.0
Total Incurred Loss and LAE Ratio	40.5			42.0			40.4			59.6			42.0			40.6			41.3			41.3
Insurance Expense Ratio	54.5			48.3			49.7			50.6			53.5			51.0			51.1			52.2
Combined Ratio	95.0		%	90.3		%	90.1		%	110.2		%	95.5		%	91.6		%	92.4		%	93.5		%
Underlying Combined Ratio 1
Current Year Non-catastrophe Losses and LAE Ratio	29.7		%	28.7		%	21.2		%	23.1		%	26.8		%	20.6		%	29.1		%	23.6		%
Insurance Expense Ratio	54.5			48.3			49.7			50.6			53.5			51.0			51.1			52.2
Underlying Combined Ratio	84.2		%	77.0		%	70.9		%	73.7		%	80.3		%	71.6		%	80.2		%	75.8		%
Non-GAAP Measure Reconciliation
Combined Ratio	95.0		%	90.3		%	90.1		%	110.2		%	95.5		%	91.6		%	92.4		%	93.5		%
Less:
Current Year Catastrophe Losses and LAE Ratio	5.0			2.8			19.2			36.5			15.9			12.3			3.8			14.1
Prior Years Non-catastrophe Losses and LAE Ratio	4.1			4.2			—			2.6			0.6			4.5			4.2			2.6
Prior Years Catastrophe Losses and LAE Ratio	1.7			6.3			—			(2.6)			(1.3)			3.2			4.2			1.0
Underlying Combined Ratio	84.2		%	77.0		%	70.9		%	73.7		%	80.3		%	71.6		%	80.2		%	75.8		%
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.

26

Kemper Corporation

Expenses

(Dollars in Millions)

(Unaudited)

	Three Months Ended													Six Months Ended
		Jun 30, 2022		Mar 31, 2022		Dec 31, 2021		Sep 30, 2021		Jun 30, 2021		Mar 31, 2021		Jun 30, 2022		Jun 30, 2021
Insurance Expenses:
Commissions		$	190.9	$	191.9	$	192.3	$	210.0	$	220.1	$	195.2	$	382.8	$	415.3
General Expenses		91.4		87.1		87.5		85.1		82.3		84.6		178.5		166.9
Premium Taxes		25.2		25.4		25.2		26.5		27.2		25.4		50.6		52.6
Total Costs Incurred		307.5		304.4		305.0		321.6		329.6		305.2		611.9		634.8
Net Policy Acquisition Costs Deferred		(0.5)		(2.5)		(1.0)		(23.8)		(41.1)		(22.4)		(3.0)		(63.5)
Amortization of Valuation of Business Acquired ("VOBA")		0.7		2.1		5.1		13.5		25.5		0.9		2.8		26.4
Insurance Expenses		307.7		304.0		309.1		311.3		314.0		283.7		611.7		597.7
Loss from Early Extinguishment of Debt		—		3.7		—		—		—		—		3.7		—
Interest and Other Expenses:
Interest Expense		14.0		12.7		10.6		10.7		11.2		11.1		26.7		22.3
Other Expenses:
Acquisition Related Transaction, Integration and Other Costs		9.9		4.7		9.2		8.0		10.4		16.3		14.6		26.7
Other		29.6		36.7		36.4		33.2		32.5		29.8		66.3		62.3
Other Expenses		39.5		41.4		45.6		41.2		42.9		46.1		80.9		89.0
Interest and Other Expenses		53.5		54.1		56.2		51.9		54.1		57.2		107.6		111.3
Total Expenses		$	361.2	$	361.8	$	365.3	$	363.2	$	368.1	$	340.9	$	723.0	$	709.0

27

Kemper Corporation

Details of Investment Performance

(Dollars in Millions)

(Unaudited)

	Three Months Ended												Six Months Ended
	Jun 30, 2022		Mar 31, 2022		Dec 31, 2021		Sep 30, 2021		Jun 30, 2021		Mar 31, 2021		Jun 30, 2022		Jun 30, 2021
Net Investment Income
Interest on Fixed Income Securities	$	72.8	$	68.7	$	70.6	$	68.4	$	69.7	$	69.0	$	141.5	$	138.7
Dividends on Equity Securities Excluding Alternative Investments	1.7		1.5		6.1		2.9		4.8		2.1		3.2		6.9
Alternative Investments:
Equity Method Limited Liability Investments	15.3		13.3		5.8		12.0		16.4		22.5		28.6		38.9
Limited Liability Investments Included in Equity Securities	18.5		7.6		17.6		9.5		15.3		4.5		26.1		19.8
Total Alternative Investments	33.8		20.9		23.4		21.5		31.7		27.0		54.7		58.7
Short-term Investments	0.2		0.1		0.4		0.2		(0.8)		1.2		0.3		0.4
Loans to Policyholders	5.3		5.5		5.4		5.4		5.4		5.5		10.8		10.9
Real Estate	2.3		2.2		2.2		2.3		2.4		2.4		4.5		4.8
Company-Owned Life Insurance	9.8		8.3		7.4		7.2		6.5		4.6		18.1		11.1
Other	1.7		1.7		1.9		1.9		2.8		0.1		3.4		2.9
Total Investment Income	127.6		108.9		117.4		109.8		122.5		111.9		236.5		234.4
Investment Expenses:
Real Estate	1.0		2.5		2.9		2.6		2.1		2.1		3.5		4.2
Other Investment Expenses	8.1		6.4		6.1		5.3		6.5		6.7		14.5		13.2
Total Investment Expenses	9.1		8.9		9.0		7.9		8.6		8.8		18.0		17.4
Net Investment Income	$	118.5	$	100.0	$	108.4	$	101.9	$	113.9	$	103.1	$	218.5	$	217.0
Net Realized Investment Gains (Losses)
Fixed Maturities:
Gains on Sales	$	13.4	$	0.4	$	20.7	$	10.3	$	19.2	$	13.2	$	13.8	$	32.4
Losses on Sales	(2.8)		(0.8)		(0.4)		(0.4)		(0.2)		(1.1)		(3.6)		(1.3)
Gains (Losses) on Hedging Activity	0.3		—		—		—		—		—		0.3		—
Equity Securities:
Gains on Sales	0.1		2.0		2.3		0.1		—		1.7		2.1		1.7
Losses on Sales	—		(0.1)		(0.5)		(0.2)		—		—		(0.1)		—
Equity Method Limited Liability Investments:
Gains on Sales	—		—		—		0.4		—		—		—		—
Losses on Sales	—		—		—		—		—		—		—		—
Real Estate:
Gains on Sales	—		—		—		(0.1)		0.2		—		—		0.2
Losses on Sales	—		—		(0.4)		—		—		—		—		—
Net Realized Investment Gains (Losses)	$	11.0	$	1.5	$	21.7	$	10.1	$	19.2	$	13.8	$	12.5	$	33.0
Net Impairment Losses Recognized in Earnings
Fixed Maturities	$	(4.9)	$	(8.9)	$	(3.1)	$	0.5	$	(0.6)	$	(3.2)	$	(13.8)	$	(3.8)
Equity Securities	—		—		(0.1)		(0.7)		(2.6)		(0.8)		—		(3.4)
Real Estate	—		—		—		(0.4)		—		—		—		—
Net Impairment Losses Recognized in Earnings	$	(4.9)	$	(8.9)	$	(3.2)	$	(0.6)	$	(3.2)	$	(4.0)	$	(13.8)	$	(7.2)

28

Kemper Corporation

Details of Invested Assets

(Dollars in Millions)

(Unaudited)

	Jun 30, 2022				Dec 31, 2021				Dec 31, 2020
	Carrying Value		Percent of Total1		Carrying Value		Percent of Total1		Carrying Value		Percent of Total1
Fixed Maturities Reported at Fair Value:
U.S. Government and Government Agencies and Authorities	$	575.9	6.2	%	$	637.4	6.1	%	$	585.3	5.6	%
States and Political Subdivisions	1,731.2		18.8		1,890.1		18.2		1,589.5		15.2
Foreign Governments	5.5		0.1		5.5		0.1		5.2		—
Corporate Securities:
Bonds and Notes	3,633.9		39.4		4,386.9		42.2		4,425.4		42.5
Redeemable Preferred Stocks	8.1		0.1		7.4		0.1		7.5		0.1
Collateralized Loan Obligations	960.3		10.4		752.1		7.2		767.7		7.4
Other Mortgage- and Asset-backed	303.9		3.3		307.5		3.0		225.3		2.2
Total Fixed Maturities Reported at Fair Value	7,218.8		78.3		7,986.9		76.9		7,605.9		73.0
Equity Securities Reported at Fair Value:
Preferred Stocks	45.8		0.5		51.8		0.5		59.1		0.6
Common Stocks	1.5		—		21.8		0.2		10.8		0.1
Other Equity Interests:
Exchange Traded Funds	75.8		0.8		432.0		4.2		496.6		4.8
Limited Liability Companies and Limited Partnerships	271.9		3.0		325.0		3.1		292.0		2.8
Total Equity Securities Reported at Fair Value	395.0		4.3		830.6		8.0		858.5		8.2
Equity Method Limited Liability Investments	228.9		2.5		241.9		2.3		204.0		2.0
Alternative Energy Partnership Investments	17.0		0.2		39.6		0.4		21.3		0.2
Short-term Investments at Cost which Approximates Fair Value	230.2		2.5		284.1		2.7		875.4		8.4
Company Owned Life Insurance	566.2		6.1		448.1		4.3		327.4		3.1
Loans to Policyholders	282.3		3.1		286.2		2.8		297.9		2.9
Other Investments:
Equity Securities Reported at Modified Cost	37.2		0.4		32.3		0.3		40.1		0.4
Convertible Securities at Fair Value	43.5		0.5		46.4		0.5		39.9		0.4
Real Estate at Depreciated Cost	95.2		1.0		94.0		0.9		98.7		0.9
Mortgage Loans	99.7		1.1		96.8		0.9		54.6		0.5
Other	1.3		—		0.5		—		0.4		—
Total Other Investments	276.9		3.0		270.0		2.6		233.7		2.2
Total Investments	$	9,215.3	100.0	%	$	10,387.4	100.0	%	$	10,424.1	100.0	%
1 Sum of percentages for individual lines may not equal subtotals and grand total due to rounding.

29

Kemper Corporation

Details of Invested Assets (continued)

(Dollars in Millions)

(Unaudited)

	Jun 30, 2022				Dec 31, 2021				Dec 31, 2020
	Carrying Value		Percent of Total1		Carrying Value		Percent of Total1		Carrying Value		Percent of Total1
S&P Equivalent Rating for Fixed Maturities
AAA, AA, A	$	5,027.3	69.7	%	$	5,351.6	67.0	%	$	4,759.9	62.6	%
BBB	1,810.5		25.1		2,215.1		27.7		2,355.6		31.0
BB, B	298.1		4.1		331.0		4.2		353.1		4.6
CCC or Lower	82.9		1.1		89.2		1.1		137.3		1.8
Total Investments in Fixed Maturities	$	7,218.8	100.0	%	$	7,986.9	100.0	%	$	7,605.9	100.0	%
Duration (in Years)
Total Investments in Fixed Maturities	7.9				8.5				7.8
1 Sum of percentages for individual lines may not equal subtotals and grand total due to rounding.

30

Kemper Corporation

Investment Concentration

(Dollars in Millions)

(Unaudited)

	Jun 30, 2022				Dec 31, 2021				Dec 31, 2020
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	$	2,084.5	22.6	%	$	1,996.7	19.2	%	$	1,916.3	18.4	%
Manufacturing	1,157.6		12.6		1,571.0		15.1		1,633.5		15.7
Transportation, Communication and Utilities	695.1		7.5		815.8		7.9		825.5		7.9
Services	581.2		6.3		617.5		5.9		581.3		5.6
Mining	197.3		2.1		254.3		2.4		285.7		2.7
Retail Trade	153.2		1.7		171.4		1.7		172.6		1.7
Construction	24.6		0.3		13.1		0.1		—		—
Wholesale Trade	0.1		—		—		—		—		—
Other	12.6		0.1		14.1		0.1		11.0		0.1
Total Fair Value of Non-governmental Fixed Maturities	$	4,906.2	53.2	%	$	5,453.9	52.4	%	$	5,425.9	52.1	%

	Jun 30, 2022
Ten Largest Investment Exposures 1	Fair Value		Percent of Total Investments
Fixed Maturities:
States including their Political Subdivisions:
Texas	$	146.0	1.6	%
California	101.2		1.1
Georgia	84.3		0.9
Michigan	84.0		0.9
New York	81.1		0.9
Pennsylvania	69.7		0.8
Florida	68.7		0.7
Louisiana	66.9		0.7
Colorado	58.5		0.6
Equity Securities at Fair Value—Other Equity Interests:
Vanguard Total World Stock ETF	63.2		0.7
Total	$	823.6	8.9	%

1Excluding Investments in U.S. Government and Government Agencies and Authorities at June 30, 2022.

31

Kemper Corporation

Municipal Bond Securities

(Dollars in Millions)

(Unaudited)

	Jun 30, 2022
	State General Obligation		Political Subdivision General Obligation		Revenue		Total Fair Value		Percent of Total Muni Bond1		Percent of Total Investments1
Texas	$	21.3	$	119.1	$	5.7	$	146.1	8.4	%	1.6	%
California	11.3		83.4		6.5		101.2		5.8		1.1
Georgia	7.8		72.0		4.5		84.3		4.9		0.9
Michigan	—		70.1		13.9		84.0		4.9		0.9
New York	7.9		67.6		5.6		81.1		4.7		0.9
Pennsylvania	3.1		61.2		5.4		69.7		4.0		0.8
Florida	—		68.7		—		68.7		4.0		0.7
Louisiana	5.3		27.3		34.3		66.9		3.9		0.7
Colorado	—		58.5		—		58.5		3.4		0.6
Virginia	14.8		33.6		6.3		54.7		3.2		0.6
Massachusetts	1.3		45.6		5.7		52.6		3.0		0.6
Washington	1.4		34.6		16.5		52.5		3.0		0.6
Oregon	2.4		21.8		27.8		52.0		3.0		0.6
Maryland	7.5		35.5		2.0		45.0		2.6		0.5
Illinois	0.6		44.1		—		44.7		2.6		0.5
Minnesota	2.1		40.1		—		42.2		2.4		0.5
Ohio	—		35.2		5.5		40.7		2.4		0.4
Indiana	—		39.7		—		39.7		2.3		0.4
New Mexico	—		37.8		—		37.8		2.2		0.4
Tennessee	10.1		22.9		3.3		36.3		2.1		0.4
Utah	—		31.8		—		31.8		1.8		0.3
Connecticut	—		17.3		14.0		31.3		1.8		0.3
Missouri	1.1		29.8		—		30.9		1.8		0.3
District of Columbia	—		20.5		6.4		26.9		1.6		0.3
Arizona	0.8		24.5		—		25.3		1.5		0.3
Rhode Island	1.6		23.3		—		24.9		1.4		0.3
Mississippi	—		9.4		13.1		22.5		1.3		0.2
North Carolina	1.8		19.3		—		21.1		1.2		0.2
Hawaii	3.8		3.3		13.9		21.0		1.2		0.2
Arkansas	—		—		17.9		17.9		1.0		0.2
Iowa	—		16.8		—		16.8		1.0		0.2
South Carolina	—		16.8		—		16.8		1.0		0.2
North Dakota	—		16.5		—		16.5		1.0		0.2
Nebraska	6.5		9.8		—		16.3		0.9		0.2
Alabama	—		15.1		—		15.1		0.9		0.2
New Hampshire	0.4		14.5		—		14.9		0.9		0.2
Kentucky	—		14.3		—		14.3		0.8		0.2
Montana	—		11.4		—		11.4		0.7		0.1
Alaska	2.7		6.3		1.7		10.7		0.6		0.1
All Other States	7.2		78.1		0.8		86.1		5.0		0.9
Total	$	122.8	$	1,397.6	$	210.8	$	1,731.2	100.0	%	18.8	%
1 Sum of percentages for individual lines may not equal total due to rounding.

32

Kemper Corporation

Investments in Limited Liability

Companies and Limited Partnerships

(Dollars in Millions)

(Unaudited)

	Unfunded Commitment		Reported Value
Asset Class	Jun 30, 2022		Jun 30, 2022		Dec 31, 2021
Reported as Equity Method Limited Liability Investments:
Mezzanine Debt	$	38.8	$	120.6	$	120.0
Senior Debt	46.4		25.7		27.5
Distressed Debt	—		5.0		21.7
Secondary Transactions	1.9		13.2		11.7
Leveraged Buyout	0.8		9.2		8.7
Growth Equity	—		1.3		0.7
Real Estate	—		43.3		29.9
Hedge Fund	—		0.5		8.7
Other	—		10.1		13.0
Total Equity Method Limited Liability Investments	87.9		228.9		241.9
Alternative Energy Partnership Investments	—		17.0		39.6
Reported as Other Equity Interests at Fair Value:
Mezzanine Debt	50.9		133.5		129.3
Senior Debt	14.0		30.1		29.9
Distressed Debt	20.2		41.4		44.9
Secondary Transactions	5.7		3.6		4.0
Hedge Funds	—		24.4		82.7
Leveraged Buyout	6.6		33.8		32.2
Growth Equity	4.8		5.1		2.0
Total Reported as Other Equity Interests at Fair Value	102.2		271.9		325.0
Reported as Other Equity Interests at Modified Cost:
Other	—		8.3		7.7
Total Reported as Other Equity Interests at Modified Cost	—		8.3		7.7
Total Investments in Limited Liability Companies and Limited Partnerships	$	190.1	$	526.1	$	614.2

33

Kemper Corporation

Definitions of Non-GAAP Financial Measures

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

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

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

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

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

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

(ii) Net Realized Investment Gains (Losses);

(iii) Impairment Losses;

(iv) Acquisition Related Transaction, Integration and Other Costs;

(v) Debt Extinguishment, Pension and Other Charges; and

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

Significant non-recurring items are excluded when (a) the nature of the charge or gain is such that it is reasonably unlikely to recur within two years, and (b) there has been no similar charge or gain within the prior two years. The most directly comparable GAAP financial measure is Net Income (Loss). There were no applicable significant non-recurring items that the Company excluded from the calculation of Adjusted Consolidated Net Operating Income for the six months ended June 30, 2022 or 2021.

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

34

Kemper Corporation

Definitions of Non-GAAP Financial Measures (continued)

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

	Three Months Ended													Six Months Ended
Dollars in Millions (Unaudited)		Jun 30, 2022		Mar 31, 2022		Dec 31, 2021		Sep 30, 2021		Jun 30, 2021		Mar 31, 2021		Jun 30, 2022		Jun 30, 2021
Net Income (Loss)		$	(74.7)	$	(94.8)	$	(105.8)	$	(75.3)	$	(62.6)	$	123.2	$	(169.5)	$	60.6
Less Net Income (Loss) From:
Income (Loss) from Change in Fair Value of Equity and Convertible Securities		(32.0)		(22.3)		17.5		(0.5)		32.3		41.2		(54.3)		73.5
Net Realized Investment Gains (Losses)		8.7		1.2		17.2		7.9		15.2		10.9		9.9		26.1
Impairment Losses		(3.9)		(7.0)		(2.5)		(0.5)		(2.5)		(3.2)		(10.9)		(5.7)
Acquisition Related Transaction, Integration and Other Costs		(7.8)		(3.7)		(7.2)		(6.4)		(8.2)		(12.9)		(11.5)		(21.1)
Debt Extinguishment, Pension and Other Charges		—		(2.9)		—		—		—		—		(2.9)		—
Adjusted Consolidated Net Operating Income (Loss)		$	(39.7)	$	(60.1)	$	(130.8)	$	(75.8)	$	(99.4)	$	87.2	$	(99.8)	$	(12.2)

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

	Three Months Ended													Six Months Ended
(Unaudited)		Jun 30, 2022		Mar 31, 2022		Dec 31, 2021		Sep 30, 2021		Jun 30, 2021		Mar 31, 2021		Jun 30, 2022		Jun 30, 2021
Net Income (Loss) Per Unrestricted Share		$	(1.17)	$	(1.49)	$	(1.66)	$	(1.18)	$	(0.97)	$	1.88	$	(2.66)	$	0.93
Less Net Income (Loss) Per Unrestricted Share From:
Income (Loss) from Change in Fair Value of Equity and Convertible Securities		(0.50)		(0.35)		0.27		(0.01)		0.50		0.63		(0.85)		1.14
Net Realized Investment Gains (Losses)		0.13		0.02		0.27		0.13		0.24		0.17		0.15		0.40
Impairment Losses		(0.06)		(0.11)		(0.04)		(0.01)		(0.04)		(0.05)		(0.17)		(0.09)
Acquisition Related Transaction and Integration Costs		(0.12)		(0.06)		(0.11)		(0.10)		(0.13)		(0.20)		(0.18)		(0.33)
Debt Extinguishment, Pension and Other Charges		—		(0.05)		—		—		—		—		(0.05)		—
Adjusted Consolidated Net Operating Income (Loss) Per Unrestricted Share		$	(0.62)	$	(0.94)	$	(2.05)	$	(1.19)	$	(1.54)	$	1.33	$	(1.56)	$	(0.19)

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

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

35

Kemper Corporation

As Adjusted for Acquisitions Non-GAAP Financial Measure

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

36

Kemper Corporation

As Adjusted for Acquisitions - Consolidated Financial Highlights

(Dollars in Millions)

(Unaudited)

	Three Months Ended													Six Months Ended
		Jun 30, 2022		Mar 31, 2022		Dec 31, 2021		Sep 30, 2021		Jun 30, 2021		Mar 31, 2021		Jun 30, 2022		Jun 30, 2021
Earned Premiums
Kemper - GAAP As Reported		$	1,353.7	$	1,338.6	$	1,359.1	$	1,356.1	$	1,337.7	$	1,200.8	$	2,692.3	$	2,538.5
AAC - Prior to Acquisition		—		—		—		—		—		87.9		—		87.9
As Adjusted for Acquisitions1		$	1,353.7	$	1,338.6	$	1,359.1	$	1,356.1	$	1,337.7	$	1,288.7	$	2,692.3	$	2,626.4
Adjusted Consolidated Net Operating Income (Loss)
Kemper		$	(39.7)	$	(60.1)	$	(130.8)	$	(75.8)	$	(99.4)	$	87.2	$	(99.8)	$	(12.2)
AAC - Prior to Acquisition		—		—		—		—		—		12.3		—		12.3
Less: Impact of Purchase Accounting		(3.4)		(3.5)		(4.5)		(6.7)		(10.1)		(1.8)		(6.9)		(11.9)
As Adjusted for Acquisitions1		$	(36.3)	$	(56.6)	$	(126.3)	$	(69.1)	$	(89.3)	$	101.3	$	(92.9)	$	12.0
1 As Adjusted for Acquisitions is a non-GAAP financial measure, which is computed by excluding the impact of purchase accounting. See page 36.

37

Kemper Corporation

Selected Financial Information

As Adjusted for Acquisitions - Specialty Property & Casualty Insurance Segment

(Dollars in Millions)

(Unaudited)

	Three Months Ended																			Six Months Ended
		Jun 30, 2022			Mar 31, 2022			Dec 31, 2021			Sep 30, 2021			Jun 30, 2021			Mar 31, 2021			Jun 30, 2022			Jun 30, 2021
Earned Premiums
Kemper Specialty P&C - GAAP As Reported		$	1,043.7		$	1,021.6		$	1,032.3		$	1,028.3		$	1,010.3		$	877.6		$	2,065.3		$	1,887.9
AAC - Prior to Acquisition		—			—			—			—			—			87.9			—			87.9
As Adjusted for Acquisitions1		$	1,043.7		$	1,021.6		$	1,032.3		$	1,028.3		$	1,010.3		$	965.5		$	2,065.3		$	1,975.8
Current Year Non-CAT Losses and LAE
Kemper Specialty P&C - GAAP As Reported		$	930.2		$	911.7		$	1,028.5		$	924.4		$	877.4		$	650.0		$	1,841.9		$	1,527.4
AAC - Prior to Acquisition		—			—			—			—			—			62.0			—			62.0
Less: Impact of Purchase Accounting
Amortization of Fair Value Adjustment to Unpaid Loss and LAE		0.1			0.3			0.2			0.3			0.3			0.4			0.4			0.7
As Adjusted for Acquisitions1		$	930.1		$	911.4		$	1,028.3		$	924.1		$	877.1		$	711.6		$	1,841.5		$	1,588.7
Insurance Expenses
Kemper Specialty P&C - GAAP As Reported		$	205.4		$	199.3		$	204.4		$	194.2		$	205.6		$	170.3		$	404.7		$	375.9
AAC - Prior to Acquisition		—			—			—			—			—			13.1			—			13.1
Less: Impact of Purchase Accounting
Amortization of VOBA		0.1			1.4			4.5			12.8			24.8			0.3			1.5			25.1
Amortization of Estimated Legacy AAC Deferred Policy Acquisition Costs ("DPAC")		—			(0.8)			(2.8)			(8.4)			(16.0)			—			(0.8)			(16.0)
Amortization of VOBA, Net of Legacy DPAC		0.1			0.6			1.7			4.4			8.8			0.3			0.7			9.1
Amortization of Finite Life Intangible Assets Acquired		2.9			3.1			3.1			3.1			3.0			0.9			6.0			3.9
Other		1.2			1.0			1.1			1.1			1.1			1.1			2.2			2.2
Total Purchase Accounting Adjustments		4.2			4.7			5.9			8.6			12.9			2.3			8.9			15.2
As Adjusted for Acquisitions1		$	201.2		$	194.6		$	198.5		$	185.6		$	192.7		$	181.1		$	395.8		$	373.8
Underlying Combined Ratio1
Kemper Specialty P&C Segment - GAAP As Reported		108.8		%	108.7		%	119.4		%	108.9		%	107.3		%	93.5		%	108.8		%	100.9		%
As Adjusted for Acquisitions1		108.4		%	108.3		%	118.8		%	107.9		%	105.9		%	92.5		%	108.3		%	99.3		%
1 As Adjusted for Acquisitions is a non-GAAP financial measure, which is computed by excluding the impact of purchase accounting. See page 36.

38

Kemper Corporation

Selected Financial Information

As Adjusted for Acquisitions - Specialty Personal Automobile Insurance

(Dollars in Millions)

(Unaudited)

	Three Months Ended																			Six Months Ended
		Jun 30, 2022			Mar 31, 2022			Dec 31, 2021			Sep 30, 2021			Jun 30, 2021			Mar 31, 2021			Jun 30, 2022			Jun 30, 2021
Earned Premiums
Kemper Specialty Personal Automobile Insurance - GAAP As Reported		$	905.8		$	901.7		$	918.1		$	920.6		$	909.6		$	785.4		$	1,807.5		$	1,695.0
AAC - Prior to Acquisition		—			—			—			—			—			87.9			—			87.9
As Adjusted for Acquisitions1		$	905.8		$	901.7		$	918.1		$	920.6		$	909.6		$	873.3		$	1,807.5		$	1,782.9
Current Year Non-CAT Losses and LAE
Kemper Specialty Personal Automobile Insurance - GAAP As Reported		$	828.6		$	827.7		$	938.5		$	843.9		$	805.1		$	586.4		$	1,656.3		$	1,391.5
AAC - Prior to Acquisition		—			—			—			—			—			62.0			—			62.0
Less: Impact of Purchase Accounting
Amortization of Fair Value Adjustment to Unpaid Loss and LAE		—			0.3			0.2			0.3			0.2			0.3			0.3			0.5
As Adjusted for Acquisitions1		$	828.6		$	827.4		$	938.3		$	843.6		$	804.9		$	648.1		$	1,656.0		$	1,453.0
Insurance Expenses
Kemper Specialty Personal Automobile Insurance - GAAP As Reported		$	179.7		$	177.3		$	184.3		$	176.0		$	187.7		$	155.3		$	357.0		$	343.0
AAC - Prior to Acquisition		—			—			—			—			—			13.1			—			13.1
Less: Impact of Purchase Accounting
Amortization of VOBA		0.1			1.4			4.4			12.8			24.7			0.2			1.5			24.9
Amortization of Estimated Legacy AAC Deferred Policy Acquisition Costs ("DPAC")		—			(0.8)			(2.8)			(8.4)			(16.0)			—			(0.8)			(16.0)
Amortization of VOBA, Net of Legacy DPAC		0.1			0.6			1.6			4.4			8.7			0.2			0.7			8.9
Amortization of Finite Life Intangible Assets Acquired		2.7			2.9			3.0			2.9			2.8			0.7			5.6			3.5
Other		1.0			0.8			0.9			0.8			0.9			0.9			1.8			1.8
Total Purchase Accounting Adjustments		3.8			4.3			5.5			8.1			12.4			1.8			8.1			14.2
As Adjusted for Acquisitions1		$	175.9		$	173.0		$	178.8		$	167.9		$	175.3		$	166.6		$	348.9		$	341.9
Underlying Combined Ratio1
Kemper Specialty Personal Automobile Insurance - GAAP As Reported		111.3		%	111.5		%	122.3		%	110.8		%	109.1		%	94.5		%	111.5		%	102.4		%
As Adjusted for Acquisitions1		110.9		%	110.9		%	121.7		%	109.9		%	107.8		%	93.3		%	110.9		%	100.7		%
1 As Adjusted for Acquisitions is a non-GAAP financial measure, which is computed by excluding the impact of purchase accounting. See page 36.

39