Kemper (KMPR) 8-K Results of Operations and Financial Condition

Investor Supplement

Third Quarter 2023

Caution Regarding Forward-Looking Statements

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

•changes in the frequency and severity of insurance claims;

•claim development and the process of estimating claim reserves;

•the impacts of inflation;

•changes in the interest rate environment;

•supply chain disruption;

•product demand and pricing;

•effects of governmental and regulatory actions;

•litigation outcomes and trends;

•investment risks;

•cybersecurity risks;

•impact of catastrophes; and

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

Non-GAAP Financial Measures

This document contains non-GAAP financial measures to analyze the Company’s operating performance for the periods presented. Because the Company’s calculation of these measures may differ from similar measures used by other companies, investors should be careful when comparing the Company’s non-GAAP financial measures to those of other companies. For detailed disclosures on non-GAAP financial measures please refer to the “Definitions of Non-GAAP Financial Measures” on pages 31-34.

Kemper Corporation

Investor Supplement

Third Quarter 2023

Table of Contents

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

Kemper Corporation

Summary of Changes to Adjusted Consolidated Operating Loss

(Dollars in Millions, Except Per Share Amounts)

(Unaudited)

The Company has recast all prior period results included in this financial supplement to reflect a change in the calculation of Adjusted Consolidated Net Operating Loss to exclude the results of the Preferred Insurance business that we expect to fully exit. The results of this business, previously reported as a reportable segment, are now reflected as Non-Core Operations and presented as a reconciling item from Net Loss to Adjusted Consolidated Net Operating Loss. Prior period amounts have been recast to reflect the change in calculation of Adjusted Consolidated Operating Net Loss.

A reconciliation of reported and recasted measure of performance and metrics is provided below.

	Three Months Ended												Year to Date
	Jun 30, 2023		Mar 31, 2023		Dec 31, 2022		Sep 30, 2022		Jun 30, 2022		Mar 31, 2022			Dec 31, 2022		Dec 31, 2021
Adjusted Consolidated Operating Loss - As Reported	$	(23.9)	$	(85.0)	$	(37.5)	$	(43.5)	$	(50.3)	$	(71.7)		$	(203.0)	$	(373.8)
Less: Loss from Non-Core Operations	(3.7)		(12.2)		(2.0)		(3.3)		(21.6)		(9.5)			(36.4)		(39.8)
Adjusted Consolidated Operating Loss - As Recasted	$	(20.2)	$	(72.8)	$	(35.5)	$	(40.2)	$	(28.7)	$	(62.2)		$	(166.6)	$	(334.0)
Adjusted Consolidated Net Operating Loss - As Reported	$	(16.9)	$	(65.2)	$	(24.4)	$	(29.1)	$	(37.2)	$	(51.6)		$	(142.3)	$	(222.0)
Less: Net Loss from Non-Core Operations	(2.7)		(9.5)		(0.9)		(2.1)		(16.8)		(6.1)			(25.9)		(12.5)
Adjusted Consolidated Net Operating Loss - As Recasted	$	(14.2)	$	(55.7)	$	(23.5)	$	(27.0)	$	(20.4)	$	(45.5)		$	(116.4)	$	(209.5)
Adjusted Consolidated Net Loss Per Unrestricted Share - As Reported:
Basic - Adjusted Consolidated Net Loss	$	(0.26)	$	(1.02)	$	(0.38)	$	(0.46)	$	(0.58)	$	(0.81)		$	(2.23)	$	(3.45)
Diluted - Adjusted Consolidated Net Loss	$	(0.26)	$	(1.02)	$	(0.38)	$	(0.46)	$	(0.58)	$	(0.81)		$	(2.23)	$	(3.45)
Less: Non-Core Operations Net Loss Per Unrestricted Share:
Basic - Non-Core Operations Net Loss	$	(0.04)	$	(0.15)	$	(0.02)	$	(0.03)	$	(0.26)	$	(0.10)		$	(0.41)	$	(0.19)
Diluted - Non-Core Operations Net Loss	$	(0.04)	$	(0.15)	$	(0.02)	$	(0.03)	$	(0.26)	$	(0.10)		$	(0.41)	$	(0.19)
Adjusted Consolidated Net Loss Per Unrestricted Share - As Recasted:
Basic - Adjusted Consolidated Net Loss	$	(0.22)	$	(0.87)	$	(0.36)	$	(0.43)	$	(0.32)	$	(0.71)		$	(1.82)	$	(3.26)
Diluted - Adjusted Consolidated Net Loss	$	(0.22)	$	(0.87)	$	(0.36)	$	(0.43)	$	(0.32)	$	(0.71)		$	(1.82)	$	(3.26)

2

Kemper Corporation Consolidated Financial Highlights (Dollars in Millions, Except Per Share Amounts) (Unaudited)
	Three Months Ended														Nine Months Ended
	Sep 30, 2023		Jun 30, 2023		Mar 31, 2023		Dec 31, 2022		Sep 30, 2022		Jun 30, 2022		Mar 31, 2022		Sep 30, 2023		Sep 30, 2022
For Period Ended
Earned Premiums	$	1,117.8	$	1,166.9	$	1,180.9	$	1,264.9	$	1,290.9	$	1,337.6	$	1,320.0	$	3,465.6	$	3,948.5
Net Investment Income	107.0		106.3		101.8		106.3		97.8		118.5		100.0		315.1		316.3
Change in Value of Alternative Energy Partnership Investments	0.8		0.8		0.7		1.3		0.4		(4.9)		(16.7)		2.3		(21.2)
Other Income	2.4		1.7		1.2		1.9		4.0		0.9		2.4		5.3		7.3
Income (Loss) from Change in Fair Value of Equity and Convertible Securities	2.8		2.4		1.7		—		(11.2)		(40.5)		(28.2)		6.9		(79.9)
Net Realized Investment (Losses) Gains	(31.4)		(15.3)		8.5		0.2		(20.4)		6.1		(7.4)		(38.2)		(21.7)
Investment and Other Income	81.6		95.9		113.9		109.7		70.6		80.1		50.1		291.4		200.8
Total Revenues	$	1,199.4	$	1,262.8	$	1,294.8	$	1,374.6	$	1,361.5	$	1,417.7	$	1,370.1	$	3,757.0	$	4,149.3
Net Loss	$	(146.4)	$	(97.1)	$	(80.1)	$	(53.3)	$	(74.8)	$	(72.2)	$	(86.3)	$	(323.6)	$	(233.3)
Less: Net Loss attributable to Noncontrolling Interest	(0.1)		—		—		—		—		—		—		(0.1)		—
Net Loss attributable to Kemper Corporation	$	(146.3)	$	(97.1)	$	(80.1)	$	(53.3)	$	(74.8)	$	(72.2)	$	(86.3)	$	(323.5)	$	(233.3)
Adjusted Consolidated Net Operating Loss1	$	(27.9)	$	(14.2)	$	(55.7)	$	(23.5)	$	(27.0)	$	(20.4)	$	(45.5)	$	(97.8)	$	(92.9)
Per Unrestricted Common Share Amounts:
Basic:
Net Loss attributable to Kemper Corporation per Unrestricted Share:	$	(2.28)	$	(1.52)	$	(1.25)	$	(0.84)	$	(1.17)	$	(1.13)	$	(1.36)	$	(5.05)	$	(3.66)
Adjusted Consolidated Net Operating Loss1	$	(0.44)	$	(0.22)	$	(0.87)	$	(0.36)	$	(0.43)	$	(0.32)	$	(0.71)	$	(1.53)	$	(1.46)
Diluted:
Net Loss attributable to Kemper Corporation per Unrestricted Share:	$	(2.28)	$	(1.52)	$	(1.25)	$	(0.84)	$	(1.17)	$	(1.13)	$	(1.36)	$	(5.05)	$	(3.66)
Adjusted Consolidated Net Operating Loss1	$	(0.44)	$	(0.22)	$	(0.87)	$	(0.36)	$	(0.43)	$	(0.32)	$	(0.71)	$	(1.53)	$	(1.46)
Dividends Paid to Shareholders Per Share	$	0.31	$	0.31	$	0.31	$	0.31	$	0.31	$	0.31	$	0.31	$	0.93	$	0.93

3

Kemper Corporation Consolidated Financial Highlights (Dollars in Millions, Except Per Share Amounts) (Unaudited)
	As of
	Sep 30, 2023			Jun 30, 2023			Mar 31, 2023			Dec 31, 2022			Sep 30, 2022			Jun 30, 2022			Mar 31, 2022
At Period End
Total Assets	$	12,549.3		$	13,096.3		$	13,403.7		$	13,313.6		$	13,399.9		$	13,964.2		$	14,667.7
Insurance Reserves	$	5,822.6		$	6,043.9		$	6,120.7		$	6,033.1		$	5,940.1		$	6,343.5		$	6,864.3
Debt	$	1,388.6		$	1,388.1		$	1,387.5		$	1,386.9		$	1,386.4		$	1,385.8		$	1,385.2
Kemper Corporation Shareholders’ Equity	$	2,361.3		$	2,512.2		$	2,646.9		$	2,670.6		$	2,694.5		$	2,844.1		$	2,969.2
Kemper Corporation Shareholders’ Equity Excluding Goodwill1,2	$	1,110.6		$	1,261.5		$	1,346.6		$	1,370.3		$	1,395.7		$	1,532.1		$	1,657.2
Common Shares Issued and Outstanding (In Millions)	64.081			64.054			63.982			63.913			63.884			63.850			63.800
Book Value Per Share2	$	36.85		$	39.22		$	41.37		$	41.79		$	42.18		$	44.54		$	46.54
Book Value Per Share Excluding Goodwill1,2	$	17.33		$	19.69		$	21.05		$	21.44		$	21.85		$	24.00		$	25.97
Book Value Per Share Excluding Net Unrealized Losses on Fixed Maturities and Changes in the Discount Rate on Future Life Policyholder Benefits1,2	$	44.45		$	46.18		$	47.93		$	49.23		$	50.16		$	51.76		$	53.11
Book Value Per Share Excluding Net Unrealized Losses on Fixed Maturities, Changes in the Discount Rate on Future Life Policyholder Benefits and Goodwill1,2	$	24.94		$	26.66		$	27.61		$	28.88		$	29.83		$	31.21		$	32.55
Debt to Total Capitalization2	37.0		%	35.6		%	34.4		%	34.2		%	34.0		%	32.8		%	31.8		%
Rolling 12 Months Return on 5-point Average Kemper Corporation Shareholders’ Equity2,3	(14.6)		%	(11.4)		%	(10.1)		%	(10.0)		%	(11.1)		%	(10.7)		%	(9.9)		%
1 Non-GAAP Financial Measure. See pages 31-32 for definition.
2 See Capital Metrics on pages 9-10 for detail calculations.
3 Rolling 12 Months Return on 5-point Average Kemper Corporation Shareholders’ Equity is calculated by taking the last 12 months of Net Loss attributable to Kemper Corporation divided by the 5-point average Kemper Corporation Shareholders’ Equity. The 5-point Average Kemper Corporation Shareholders’ Equity is calculated by using a 5-point quarter average of Kemper Corporation Shareholders’ Equity for the 12 month period.

4

Kemper Corporation

Consolidated Statements of Loss

(Dollars in Millions, Except Per Share Amounts)

(Unaudited)

	Three Months Ended														Nine Months Ended
	Sep 30, 2023		Jun 30, 2023		Mar 31, 2023		Dec 31, 2022		Sep 30, 2022		Jun 30, 2022		Mar 31, 2022			Sep 30, 2023		Sep 30, 2022
Revenues:
Earned Premiums	$	1,117.8	$	1,166.9	$	1,180.9	$	1,264.9	$	1,290.9	$	1,337.6	$	1,320.0		$	3,465.6	$	3,948.5
Net Investment Income	107.0		106.3		101.8		106.3		97.8		118.5		100.0			315.1		316.3
Change in Value of Alternative Energy Partnership Investments	0.8		0.8		0.7		1.3		0.4		(4.9)		(16.7)			2.3		(21.2)
Other Income	2.4		1.7		1.2		1.9		4.0		0.9		2.4			5.3		7.3
Income (Loss) from Change in Fair Value of Equity and Convertible Securities	2.8		2.4		1.7		—		(11.2)		(40.5)		(28.2)			6.9		(79.9)
Net Realized Investment (Losses) Gains	(30.3)		(14.4)		6.4		3.9		(12.1)		11.0		1.5			(38.3)		0.4
Impairment (Losses) Gains	(1.1)		(0.9)		2.1		(3.7)		(8.3)		(4.9)		(8.9)			0.1		(22.1)
Total Revenues	1,199.4		1,262.8		1,294.8		1,374.6		1,361.5		1,417.7		1,370.1			3,757.0		4,149.3
Expenses:
Policyholders’ Benefits and Incurred Losses and Loss Adjustment Expenses	975.2		984.7		1,052.0		1,073.0		1,085.3		1,151.1		1,123.2			3,011.9		3,359.6
Insurance Expenses	259.0		266.1		269.3		288.0		300.5		307.7		304.8			794.4		913.0
Loss from Early Extinguishment of Debt	—		—		—		—		—		—		3.7			—		3.7
Interest and Other Expenses	156.0		78.3		77.4		86.5		63.5		53.5		54.1			311.7		171.1
Goodwill Impairment	—		49.6		—		—		—		—		—			49.6		—
Total Expenses	1,390.2		1,378.7		1,398.7		1,447.5		1,449.3		1,512.3		1,485.8			4,167.6		4,447.4
Loss before Income Taxes	(190.8)		(115.9)		(103.9)		(72.9)		(87.8)		(94.6)		(115.7)			(410.6)		(298.1)
Income Tax Benefit	44.4		18.8		23.8		19.6		13.0		22.4		29.4			87.0		64.8
Net Loss	(146.4)		(97.1)		(80.1)		(53.3)		(74.8)		(72.2)		(86.3)			(323.6)		(233.3)
Less: Net Loss attributable to Noncontrolling Interest	(0.1)		—		—		—		—		—		—			(0.1)		—
Net Loss attributable to Kemper Corporation	$	(146.3)	$	(97.1)	$	(80.1)	$	(53.3)	$	(74.8)	$	(72.2)	$	(86.3)		$	(323.5)	$	(233.3)
Net Loss attributable to Kemper Corporation per Unrestricted Share:
Basic	$	(2.28)	$	(1.52)	$	(1.25)	$	(0.84)	$	(1.17)	$	(1.13)	$	(1.36)		$	(5.05)	$	(3.66)
Diluted	$	(2.28)	$	(1.52)	$	(1.25)	$	(0.84)	$	(1.17)	$	(1.13)	$	(1.36)		$	(5.05)	$	(3.66)
Dividends Paid to Shareholders Per Share	$	0.31	$	0.31	$	0.31	$	0.31	$	0.31	$	0.31	$	0.31		$	0.93	$	0.93
Weighted Average Unrestricted Common Shares Outstanding (in Millions)	64.057		64.009		63.947		63.888		63.853		63.816		63.744			64.004		63.804

5

Kemper Corporation

Consolidated Balance Sheets

(Dollars in Millions)

(Unaudited)

	Sep 30, 2023		Jun 30, 2023		Mar 31, 2023		Dec 31, 2022		Sep 30, 2022		Jun 30, 2022		Mar 31, 2022
Assets:
Investments:
Fixed Maturities at Fair Value	$	6,474.5	$	6,943.8	$	7,189.4	$	6,894.8	$	6,577.1	$	7,218.8	$	7,783.9
Equity Securities at Fair Value	233.4		247.0		243.6		243.2		322.7		395.0		571.5
Equity Method Limited Liability Investments	224.1		225.1		218.7		217.0		226.0		228.9		230.0
Alternative Energy Partnerships	17.2		16.8		17.0		16.3		16.9		17.0		22.4
Short-term Investments at Cost which Approximates Fair Value	418.5		406.3		278.4		278.4		357.2		230.2		243.8
Company-Owned Life Insurance	506.9		500.5		595.3		586.5		578.6		566.2		556.4
Loans to Policyholders	281.8		281.6		283.1		283.4		283.2		282.3		284.7
Other Investments	273.1		275.6		271.8		269.9		274.2		276.9		275.4
Total Investments	8,429.5		8,896.7		9,097.3		8,789.5		8,635.9		9,215.3		9,968.1
Cash	110.0		73.6		60.6		212.4		249.2		348.6		297.3
Receivables from Policyholders	1,102.6		1,246.3		1,344.0		1,286.6		1,345.8		1,375.1		1,404.5
Other Receivables	223.4		262.0		249.4		262.6		228.7		206.5		203.4
Deferred Policy Acquisition Costs	622.2		646.2		651.5		635.6		645.1		690.1		689.6
Goodwill	1,250.7		1,250.7		1,300.3		1,300.3		1,298.8		1,312.0		1,312.0
Current Income Tax Assets	59.5		9.0		15.0		167.6		165.1		200.8		183.0
Deferred Income Tax Assets	258.5		208.0		166.0		129.0		113.7		58.7		43.4
Assets Held-for-Sale	—		—		—		—		172.8		—		—
Other Assets	488.7		503.8		519.6		530.0		544.8		557.1		566.4
Assets of Consolidated Variable Interest Entity
Fixed Maturities at Fair Value	1.6		—		—		—		—		—		—
Cash	2.4		—		—		—		—		—		—
Receivables from Policyholders	0.1		—		—		—		—		—		—
Other Assets	0.1		—		—		—		—		—		—
Total Assets	$	12,549.3	$	13,096.3	$	13,403.7	$	13,313.6	$	13,399.9	$	13,964.2	$	14,667.7
Liabilities and Shareholders’ Equity:
Insurance Reserves:
Life and Health	$	3,098.1	$	3,363.8	$	3,399.6	$	3,276.2	$	3,219.8	$	3,585.1	$	4,104.2
Property and Casualty	2,724.5		2,680.1		2,721.1		2,756.9		2,720.3		2,758.4		2,760.1
Total Insurance Reserves	5,822.6		6,043.9		6,120.7		6,033.1		5,940.1		6,343.5		6,864.3
Unearned Premiums	1,485.1		1,665.2		1,778.0		1,704.4		1,794.8		1,854.4		1,890.5
Policyholder Contract Liabilities	656.3		700.2		700.6		701.3		704.0		704.5		655.0
Deferred Income Tax Liabilities	57.8		—		—		—		—		—		—
Liabilities Held-for-Sale	—		—		—		—		84.8		—		—
Accrued Expenses and Other Liabilities	777.6		786.7		770.0		817.3		795.3		831.9		903.5
Long-term Debt, Current and Non-current, at Amortized Cost	1,388.6		1,388.1		1,387.5		1,386.9		1,386.4		1,385.8		1,385.2
Liabilities of Consolidated Variable Interest Entity
Insurance Expenses	—		—		—		—		—		—		—
Unearned Premiums	0.1		—		—		—		—		—		—
Accrued Expenses and Other Liabilities	—		—		—		—		—		—		—
Total Liabilities	10,188.1		10,584.1		10,756.8		10,643.0		10,705.4		11,120.1		11,698.5
Kemper Corporation Shareholders’ Equity:
Common Stock	6.4		6.4		6.4		6.4		6.4		6.4		6.4
Paid-in Capital	1,845.9		1,837.6		1,828.9		1,812.7		1,822.2		1,812.5		1,803.1
Retained Earnings	982.4		1,149.0		1,266.3		1,366.4		1,439.7		1,534.6		1,627.5
Accumulated Other Comprehensive Loss	(473.4)		(480.8)		(454.7)		(514.9)		(573.8)		(509.4)		(467.8)
Total Kemper Corporation Shareholders’ Equity	2,361.3		2,512.2		2,646.9		2,670.6		2,694.5		2,844.1		2,969.2
Noncontrolling Interest	$	(0.1)	$	—	$	—	$	—	$	—	$	—	$	—
Total Shareholders’ Equity	$	2,361.2	$	2,512.2	$	2,646.9	$	2,670.6	$	2,694.5	$	2,844.1	$	2,969.2
Total Liabilities and Shareholders’ Equity	$	12,549.3	$	13,096.3	$	13,403.7	$	13,313.6	$	13,399.9	$	13,964.2	$	14,667.7

6

Kemper Corporation Consolidated Statements of Cash Flows (Dollars in Millions)  (Unaudited)
	Nine Months Ended
	Sep 30, 2023		Sep 30, 2022
Cash Flows from Operating Activities:
Net Loss	$	(323.6)	$	(233.3)
Adjustments to Reconcile Net Loss to Net Cash Used in Operating Activities
Net Realized Investment Losses (Gains)	38.3		(0.4)
Impairment (Gains) Losses	(0.1)		22.1
Depreciation and Amortization of Property, Equipment and Software	39.1		38.9
Amortization of Intangible Assets Acquired	11.0		16.0
Settlement Costs Related to Defined Benefit Pension Plan	70.2		—
Loss from Early Extinguishment of Debt	—		3.7
Change in Accumulated Undistributed Earnings of Equity Method Limited Liability Investments	(2.9)		(13.7)
(Income) Loss from Change in Value of Alternative Energy Partnership Investments	(2.3)		21.2
(Increase) Decrease in Value of Equity and Convertible Securities	(6.9)		79.9
Goodwill Impairment	49.6		—
Changes in:
Receivables from Policyholders	184.0		69.6
Reinsurance Recoverables	11.6		(1.8)
Deferred Policy Acquisition Costs	13.4		4.2
Insurance Reserves	7.9		(25.0)
Unearned Premiums	(219.3)		(93.4)
Income Taxes	27.5		(62.9)
Other Assets and Liabilities	(2.0)		4.8
Net Cash Used in Operating Activities	(104.5)		(170.1)
Cash Flows from Investing Activities:
Proceeds from the Sales, Calls and Maturities of Fixed Maturities	529.8		1,019.4
Proceeds from the Sales or Paydowns of Investments:
Equity Securities	73.9		458.3
Mortgage Loans	68.9		69.9
Other Investments	11.2		41.9
Purchases of Investments:
Fixed Maturities	(362.7)		(1,386.7)
Equity Securities	(40.1)		(55.3)
Real Estate Investments	(0.8)		(2.9)
Company-Owned Life Insurance	—		(110.0)
Mortgage Loans	(76.6)		(67.3)
Other Investments	(15.9)		(9.7)
Net Purchases of Short-term Investments	(136.5)		(73.6)
Sale of Infinity Security, Net of Cash Disposed	—		4.9
Acquisition of Software and Long-lived Assets	(39.1)		(27.1)
Settlement Proceeds from Company-Owned Life Insurance	102.2		—
Other	(9.1)		8.6
Net Cash Provided by (Used in) Investing Activities	105.2		(129.6)

7

Kemper Corporation Consolidated Statements of Cash Flows (Dollars in Millions)  (Unaudited)
	Nine Months Ended
	Sep 30, 2023		Sep 30, 2022
Net Cash Provided by (Used in) Investing Activities (Carryforward from page 7)	$	105.2	$	(129.6)
Cash Flows from Financing Activities:
Repayment of Long-term Debt	—		(280.0)
Proceeds from Issuance of 3.80% Senior Notes due February 23, 2032	—		396.3
Issuance Fees on 3.80% Senior Notes due February 23, 2032	—		(1.2)
Proceeds from Issuance of 5.875% Fixed-Rate Reset Junior Subordinated Debentures Due 2062	—		145.6
Issuance Fees on 5.875% Fixed-Rate Reset Junior Subordinated Debentures Due 2062	—		(0.9)
Proceeds from Policyholder Contract Obligations	123.3		319.9
Repayment of Policyholder Contract Obligations	(168.4)		(120.1)
Proceeds from Shares Issued under Employee Stock Purchase Plan	3.3		3.8
Dividends and Dividend Equivalents Paid	(59.8)		(59.9)
Other	0.9		0.3
Net Cash (Used in) Provided by Financing Activities	(100.7)		403.8
Net (decrease) increase in cash	(100.0)		101.0
Cash, Beginning of Year	212.4		148.2
Cash, End of Period	$	112.4	$	249.2
Net Increase in cash, Held-for-Sale	—		3.1
Cash at beginning of year, Held-for-Sale	—		—
Cash at end of period, Held-for-Sale	—		3.1
Net (decrease) increase in cash, Net of Held-for-Sale	(100.0)		97.9
Cash at beginning of year, Net of Held-for-Sale	212.4		148.2
Cash at end of period, Net of Held-for-Sale	$	112.4	$	246.1

8

Kemper Corporation Capital Metrics (Dollars and Shares in Millions, Except Per Share Amounts) (Unaudited)
	Sep 30, 2023			Jun 30, 2023			Mar 31, 2023			Dec 31, 2022			Sep 30, 2022			Jun 30, 2022			Mar 31, 2022
Book Value Per Share
Numerator
Kemper Corporation Shareholders’ Equity	$	2,361.3		$	2,512.2		$	2,646.9		$	2,670.6		$	2,694.5		$	2,844.1		$	2,969.2
Less: Goodwill	(1,250.7)			(1,250.7)			(1,300.3)			(1,300.3)			(1,298.8)			(1,312.0)			(1,312.0)
Kemper Corporation Shareholders’ Equity Excluding Goodwill1	$	1,110.6		$	1,261.5		$	1,346.6		$	1,370.3		$	1,395.7		$	1,532.1		$	1,657.2
Kemper Corporation Shareholders’ Equity	$	2,361.3		$	2,512.2		$	2,646.9		$	2,670.6		$	2,694.5		$	2,844.1		$	2,969.2
Less: Net Unrealized Losses on Fixed Maturities	900.1			640.5			574.2			716.8			782.7			472.2			13.7
Less: Changes in the Discount Rate on Future Life Policyholder Benefits	(412.8)			(194.4)			(154.2)			(241.1)			(272.8)			(11.4)			405.5
Kemper Corporation Shareholders’ Equity Excluding Net Unrealized Losses on Fixed Maturities and Changes in the Discount Rate on Future Life Policyholder Benefits1	$	2,848.6		$	2,958.3		$	3,066.9		$	3,146.3		$	3,204.4		$	3,304.9		$	3,388.4
Less: Goodwill	(1,250.7)			(1,250.7)			(1,300.3)			(1,300.3)			(1,298.8)			(1,312.0)			(1,312.0)
Kemper Corporation Shareholders’ Equity Excluding Net Unrealized Losses on Fixed Maturities, Changes in the Discount Rate on Future Life Policyholder Benefits and Goodwill1	$	1,597.9		$	1,707.6		$	1,766.6		$	1,846.0		$	1,905.6		$	1,992.9		$	2,076.4
Denominator
Common Shares Issued and Outstanding	64.081			64.054			63.982			63.913			63.884			63.850			63.800
Book Value Per Share	$	36.85		$	39.22		$	41.37		$	41.79		$	42.18		$	44.54		$	46.54
Book Value Per Share Excluding Goodwill1	$	17.33		$	19.69		$	21.05		$	21.44		$	21.85		$	24.00		$	25.97
Book Value Per Share Excluding Net Unrealized Losses on Fixed Maturities and Changes in the Discount Rate on Future Life Policyholder Benefits1	$	44.45		$	46.18		$	47.93		$	49.23		$	50.16		$	51.76		$	53.11
Book Value Per Share Excluding Net Unrealized Losses on Fixed Maturities, Changes in the Discount Rate on Future Life Policyholder Benefits and Goodwill1	$	24.94		$	26.66		$	27.61		$	28.88		$	29.83		$	31.21		$	32.55
Return on Kemper Corporation Shareholders’ Equity
Numerator
Rolling 12 Months Net Loss	$	(376.8)		$	(305.3)		$	(280.4)		$	(286.6)		$	(330.9)		$	(335.4)		$	(327.5)
Denominator (5-point Average)
5-point Average Kemper Corporation Shareholders’ Equity	$	2,577.1		$	2,673.7		$	2,765.1		$	2,861.6		$	2,985.7		$	3,130.9		$	3,298.5
Rolling 12 Months Return on Average Kemper Corporation Shareholders’ Equity (5-point Average)	(14.6)		%	(11.4)		%	(10.1)		%	(10.0)		%	(11.1)		%	(10.7)		%	(9.9)		%
Return on Kemper Corporation Shareholders’ Equity Excluding Goodwill1
Denominator (5-point Average)
5-point Average Kemper Corporation Shareholders’ Equity Excluding Goodwill1	$	1,296.9		$	1,381.2		$	1,460.4		$	1,554.6		$	1,676.3		$	1,818.9		$	2,026.2
Rolling 12 Months Return on Average Kemper Corporation Shareholders’ Equity Excluding Goodwill (5-point Average)1	(29.1)		%	(22.1)		%	(19.2)		%	(18.4)		%	(19.7)		%	(18.4)		%	(16.2)		%
Return on Kemper Corporation Shareholders’ Equity Excluding Net Unrealized Losses on Fixed Maturities and Changes in the Discount Rate on Future Life Policyholder Benefits1
Denominator (5-point Average)
5-point Average Kemper Corporation Shareholders’ Equity Excluding Net Unrealized Losses on Fixed Maturities and Changes in the Discount Rate on Future Life Policyholder Benefits1	$	3,044.9		$	3,136.2		$	3,222.2		$	3,304.2		$	3,392.5		$	3,488.2		$	3,601.3
Rolling 12 Months Return on Average Kemper Corporation Shareholders’ Equity Excluding Net Unrealized Losses on Fixed Maturities and Changes in the Discount Rate on Future Life Policyholder Benefits (5-point Average)1	(12.4)		%	(9.7)		%	(8.7)		%	(8.7)		%	(9.8)		%	(9.6)		%	(9.1)		%

9

Kemper Corporation Capital Metrics (Dollars and Shares in Millions, Except Per Share Amounts) (Unaudited)
	Sep 30, 2023			Jun 30, 2023			Mar 31, 2023			Dec 31, 2022			Sep 30, 2022			Jun 30, 2022			Mar 31, 2022
Return on Kemper Corporation Shareholders’ Equity Excluding Net Unrealized Losses on Fixed Maturities, Changes in the Discount Rate on Future Life Policyholder Benefits, and Goodwill1
Denominator (5-point Average)
5-point Average Kemper Corporation Shareholders’ Equity Excluding Net Unrealized Losses on Fixed Maturities, Changes in the Discount Rate on Future Life Policyholder Benefits and Goodwill1	$	1,764.7		$	1,843.7		$	1,917.5		$	1,997.1		$	2,083.1		$	2,176.2		$	2,328.9
Rolling 12 Months Return on Average Kemper Corporation Shareholders’ Equity Excluding Net Unrealized Losses on Fixed Maturities, Changes in the Discount Rate on Future Life Policyholder Benefits and Goodwill (5-point Average)1	(21.4)		%	(16.6)		%	(14.6)		%	(14.4)		%	(15.9)		%	(15.4)		%	(14.1)		%
1 Non-GAAP financial measure. See definitions beginning on page 31.
Debt and Total Capitalization
Debt	$	1,388.6		$	1,388.1		$	1,387.5		$	1,386.9		$	1,386.4		$	1,385.8		$	1,385.2
Kemper Corporation Shareholders’ Equity	2,361.3			2,512.2			2,646.9			2,670.6			2,694.5			2,844.1			2,969.2
Total Capitalization	$	3,749.9		$	3,900.3		$	4,034.4		$	4,057.5		$	4,080.9		$	4,229.9		$	4,354.4
Ratio of Debt to Kemper Corporation Shareholders’ Equity	58.8		%	55.3		%	52.4		%	51.9		%	51.5		%	48.7		%	46.7		%
Ratio of Debt to Total Capitalization	37.0		%	35.6		%	34.4		%	34.2		%	34.0		%	32.8		%	31.8		%
Debt	$	1,388.6		$	1,388.1		$	1,387.5		$	1,386.9		$	1,386.4		$	1,385.8		$	1,385.2
Kemper Corporation Shareholders’ Equity	$	2,361.3		$	2,512.2		$	2,646.9		$	2,670.6		$	2,694.5		$	2,844.1		$	2,969.2
Less: Accumulated Other Comprehensive Loss	(473.4)			(480.8)			(454.7)			(514.9)			(573.8)			(509.4)			(467.8)
Kemper Corporation Shareholders’ Equity Excluding Accumulated Other Comprehensive Loss	$	2,834.7		$	2,993.0		$	3,101.6		$	3,185.5		$	3,268.3		$	3,353.5		$	3,437.0
Total Capitalization Excluding Accumulated Other Comprehensive Loss	$	4,223.3		$	4,381.1		$	4,489.1		$	4,572.4		$	4,654.7		$	4,739.3		$	4,822.2
Ratio of Debt to Kemper Corporation Shareholders’ Equity Excluding Accumulated Other Comprehensive Loss	49.0		%	46.4		%	44.7		%	43.5		%	42.4		%	41.3		%	40.3		%
Ratio of Debt to Total Capitalization Excluding Accumulated Other Comprehensive Loss	32.9		%	31.7		%	30.9		%	30.3		%	29.8		%	29.2		%	28.7		%
Parent Company Liquidity3
Kemper Holding Company Cash and Investments1	$	153.9		$	220.3		$	240.6		$	417.6		$	449.8		$	275.9		$	318.3
Borrowings Available Under Credit Agreement	376.0			460.0			520.0			600.0			600.0			600.0			600.0
Parent Company Liquidity	$	529.9		$	680.3		$	760.6		$	1,017.6		$	1,049.8		$	875.9		$	918.3
Capital Returned to Shareholders
Cash Dividends Paid 2	$	20.2		$	20.2		$	19.4		$	20.1		$	20.1		$	20.6		$	19.6
1 Includes Kemper's direct non-insurance subsidiaries
2 Three Months Ended
3 Excludes borrowings available from subsidiaries

10

Kemper Corporation

Debt Outstanding, FHLB Advances and Ratings

(Dollars in Millions)

(Unaudited)

	Sep 30, 2023		Jun 30, 2023		Mar 31, 2023		Dec 31, 2022		Sep 30, 2022		Jun 30, 2022		Mar 31, 2022
Kemper Corporation:
Senior Notes at Amortized Cost:
4.350% Senior Notes due February 15, 2025	$	449.6	$	449.5	$	449.4	$	449.3	$	449.3	$	449.2	$	449.1
2.400% Senior Notes due September 30, 2030	396.9		396.8		396.7		396.6		396.5		396.4		396.3
3.800% Senior Notes due 2032	395.8		395.7		395.6		395.5		395.3		395.2		395.1
5.875% Fixed-Rate Reset Junior Subordinated Debentures Due 2062 at Amortized Cost	146.3		146.1		145.8		145.5		145.3		145.0		144.7
Long-term Debt Outstanding	$	1,388.6	$	1,388.1	$	1,387.5	$	1,386.9	$	1,386.4	$	1,385.8	$	1,385.2
Federal Home Loan Bank Advances to Insurance Subsidiaries:
Reported as Policyholder Contract Liabilities:
Federal Home Loan Bank of Chicago	$	557.4	$	601.0	$	601.0	$	601.0	$	602.6	$	602.8	$	553.1
Reported as Debt Outstanding:
Federal Home Loan Bank of Dallas	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Federal Home Loan Bank of Chicago	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Federal Home Loan Bank of San Francisco	$	—	$	—	$	—	$	—	$	—	$	—	$	—
	A.M. Best		Moody’s		S&P		Fitch
As of Date of Financial Supplement
Kemper Debt Ratings:
Senior Unsecured Debt	bbb-		Baa3		BBB-		BBB-
Junior Unsecured Debt	bb		Ba1		BB		BB
Insurance Company Financial Strength Ratings:
Trinity Universal Insurance Company	A-		A3		A-		A-
United Insurance Company of America	A-		A3		A-		A-

11

Kemper Corporation

Segment Revenues

(Dollars in Millions)

(Unaudited)

	Three Months Ended														Nine Months Ended
	Sep 30, 2023		Jun 30, 2023		Mar 31, 2023		Dec 31, 2022		Sep 30, 2022		Jun 30, 2022		Mar 31, 2022			Sep 30, 2023		Sep 30, 2022
Revenues:
Specialty Property & Casualty Insurance:
Earned Premiums:
Personal Automobile	$	724.0	$	766.6	$	787.9	$	830.4	$	858.8	$	905.8	$	901.7		$	2,278.5	$	2,666.3
Commercial Automobile	166.4		165.7		156.3		151.2		140.7		137.9		119.9			488.4		398.5
Total Specialty Property & Casualty Insurance Earned Premiums	890.4		932.3		944.2		981.6		999.5		1,043.7		1,021.6			2,766.9		3,064.8
Net Investment Income	42.7		44.5		38.5		37.9		33.9		34.0		34.9			125.7		102.8
Change in Value of Alternative Energy Partnership Investments	0.5		0.4		0.4		0.7		0.3		(2.5)		(8.4)			1.3		(10.6)
Other Income	1.6		0.7		0.9		1.0		2.3		1.0		1.7			3.2		5.0
Total Specialty Property & Casualty Insurance Revenues	935.2		977.9		984.0		1,021.2		1,036.0		1,076.2		1,049.8			2,897.1		3,162.0
Life Insurance:
Earned Premiums:
Life	84.9		84.8		82.2		99.0		84.3		86.8		82.7			251.9		253.8
Accident and Health	5.8		5.8		5.9		31.4		45.9		45.1		45.8			17.5		136.8
Property	11.4		11.6		11.2		12.2		11.9		12.1		14.3			34.2		38.3
Total Life Insurance Earned Premiums	102.1		102.2		99.3		142.6		142.1		144.0		142.8			303.6		428.9
Net Investment Income	49.4		47.1		49.8		52.6		52.6		61.9		49.4			146.3		163.9
Change in Value of Alternative Energy Partnership Investments	0.2		0.2		0.2		0.3		0.1		(1.3)		(4.4)			0.6		(5.6)
Other (Loss) Income	(0.1)		0.1		(0.4)		0.2		—		(0.8)		—			(0.4)		(0.8)
Total Life Insurance Revenues	151.6		149.6		148.9		195.7		194.8		203.8		187.8			450.1		586.4
Total Segment Revenues	1,086.8		1,127.5		1,132.9		1,216.9		1,230.8		1,280.0		1,237.6			3,347.2		3,748.4
Income (Loss) from Change in Fair Value of Equity and Convertible Securities	2.8		2.4		1.7		—		(11.2)		(40.5)		(28.2)			6.9		(79.9)
Net Realized Investment (Losses) Gains	(30.3)		(14.4)		6.4		3.9		(12.1)		11.0		1.5			(38.3)		0.4
Impairment (Losses) Gains	(1.1)		(0.9)		2.1		(3.7)		(8.3)		(4.9)		(8.9)			0.1		(22.1)
Non-Core Operations	138.0		145.7		148.0		154.5		161.1		160.7		164.2			431.7		486.0
Other	3.2		2.5		3.7		3.0		1.2		11.4		3.9			9.4		16.5
Total Revenues	$	1,199.4	$	1,262.8	$	1,294.8	$	1,374.6	$	1,361.5	$	1,417.7	$	1,370.1		$	3,757.0	$	4,149.3

12

Kemper Corporation

Segment Adjusted Operating Results

(Dollars in Millions)

(Unaudited)

	Three Months Ended														Nine Months Ended
	Sep 30, 2023		Jun 30, 2023		Mar 31, 2023		Dec 31, 2022		Sep 30, 2022		Jun 30, 2022		Mar 31, 2022		Sep 30, 2023		Sep 30, 2022
Segment Adjusted Operating (Loss) Income:
Specialty Property & Casualty Insurance	$	(43.2)	$	(15.0)	$	(74.7)	$	(46.5)	$	(39.2)	$	(51.0)	$	(60.2)	$	(132.9)	$	(150.4)
Life Insurance	17.5		10.1		14.8		26.5		15.6		23.9		12.0		42.4		51.5
Total Segment Adjusted Operating Loss	(25.7)		(4.9)		(59.9)		(20.0)		(23.6)		(27.1)		(48.2)		(90.5)		(98.9)
Other	(13.3)		(15.3)		(12.9)		(15.5)		(16.6)		(1.6)		(14.0)		(41.5)		(32.2)
Corporate and Other Adjusted Operating Loss	(13.3)		(15.3)		(12.9)		(15.5)		(16.6)		(1.6)		(14.0)		(41.5)		(32.2)
Adjusted Consolidated Operating Loss	(39.0)		(20.2)		(72.8)		(35.5)		(40.2)		(28.7)		(62.2)		(132.0)		(131.1)
Income From:
Change in Fair Value of Equity and Convertible Securities	2.8		2.4		1.7		—		(11.2)		(40.5)		(28.2)		6.9		(79.9)
Net Realized Investment (Losses) Gains	(30.3)		(14.4)		6.4		3.9		(12.1)		11.0		1.5		(38.3)		0.4
Impairment (Losses) Gains	(1.1)		(0.9)		2.1		(3.7)		(8.3)		(4.9)		(8.9)		0.1		(22.1)
Acquisition and Disposition Related Transaction, Integration, Restructuring and Other Costs	(43.3)		(29.5)		(29.1)		(35.6)		(12.7)		(9.9)		(4.7)		(101.9)		(27.3)
Debt Extinguishment, Pension Settlement and Other Charges	(70.2)		—		—		—		—		—		(3.7)		(70.2)		(3.7)
Goodwill Impairment Charge	—		(49.6)		—		—		—		—		—		(49.6)		—
Non-Core Operations	(9.6)		(3.7)		(12.2)		(2.0)		(3.3)		(21.6)		(9.5)		(25.5)		(34.4)
Loss before Income Taxes attributable to Kemper Corporation	$	(190.7)	$	(115.9)	$	(103.9)	$	(72.9)	$	(87.8)	$	(94.6)	$	(115.7)	$	(410.5)	$	(298.1)
Loss before Income Taxes Noncontrolling Interest	(0.1)		—		—		—		—		—		—		(0.1)		—
Loss before Income Taxes	$	(190.8)	$	(115.9)	$	(103.9)	$	(72.9)	$	(87.8)	$	(94.6)	$	(115.7)	$	(410.6)	$	(298.1)
Segment Adjusted Net Operating (Loss) Income:
Specialty Property & Casualty Insurance	$	(33.2)	$	(10.8)	$	(58.4)	$	(35.1)	$	(28.7)	$	(38.9)	$	(44.7)	$	(102.4)	$	(112.3)
Life Insurance	14.7		8.9		13.2		23.0		14.0		20.2		11.6		36.8		45.8
Total Segment Adjusted Net Operating Loss	(18.5)		(1.9)		(45.2)		(12.1)		(14.7)		(18.7)		(33.1)		(65.6)		(66.5)
Corporate and Other Adjusted Net Operating Loss From:
Other	(9.4)		(12.3)		(10.5)		(11.4)		(12.3)		(1.7)		(12.4)		(32.2)		(26.4)
Corporate and Other Adjusted Net Operating Loss	(9.4)		(12.3)		(10.5)		(11.4)		(12.3)		(1.7)		(12.4)		(32.2)		(26.4)
Adjusted Consolidated Net Operating Loss	(27.9)		(14.2)		(55.7)		(23.5)		(27.0)		(20.4)		(45.5)		(97.8)		(92.9)
Net Income (Loss) From:
Change in Fair Value of Equity and Convertible Securities	2.3		1.9		1.3		—		(8.8)		(32.0)		(22.3)		5.5		(63.1)
Net Realized Investment (Losses) Gains	(22.9)		(12.5)		5.1		3.1		(9.6)		8.7		1.2		(30.3)		0.3
Impairment (Losses) Gains	(0.8)		(0.8)		1.7		(2.9)		(6.6)		(3.9)		(7.0)		0.1		(17.5)
Acquisition and Disposition Related Transaction, Integration, Restructuring and Other Costs	(34.2)		(23.3)		(23.0)		(29.1)		(20.7)		(7.8)		(3.7)		(80.5)		(32.2)
Debt Extinguishment, Pension Settlement and Other Charges	(55.5)		—		—		—		—		—		(2.9)		(55.5)		(2.9)
Goodwill Impairment Charge	—		(45.5)		—		—		—		—		—		(45.5)		—
Non-Core Operations	(7.3)		(2.7)		(9.5)		(0.9)		(2.1)		(16.8)		(6.1)		(19.5)		(25.0)
Net Loss attributable to Kemper Corporation	$	(146.3)	$	(97.1)	$	(80.1)	$	(53.3)	$	(74.8)	$	(72.2)	$	(86.3)	$	(323.5)	$	(233.3)
Net Loss Noncontrolling Interest	(0.1)		—		—		—		—		—		—		(0.1)		—
Net Loss	$	(146.4)	$	(97.1)	$	(80.1)	$	(53.3)	$	(74.8)	$	(72.2)	$	(86.3)	$	(323.6)	$	(233.3)

13

Kemper Corporation

Catastrophe Frequency and Severity

(Dollars in Millions)

(Unaudited)

	Nine Months Ended September 30, 2023
	Specialty Property & Casualty Insurance Segment			Life Insurance Segment			Non-Core Operations			Consolidated
	Number of Events	Losses and LAE		Number of Events	Losses and LAE		Number of Events	Losses and LAE		Number of Events	Losses and LAE
Range of Losses and LAE Per Event1:
Below $5	56	$	26.6	41	$	1.9	61	$	52.3	61	$	74.6
$5 - $10	1	5.4		—	—		—	—		2	11.6
$10 - $15	—	—		—	—		—	—		—	—
$15 - $20	—	—		—	—		—	—		—	—
$20 - $25	—	—		—	—		—	—		—	—
Greater Than $25	—	—		—	—		—	—		—	—
Total	57	$	32.0	41	$	1.9	61	$	52.3	63	$	86.2
	Nine Months Ended September 30, 2022
	Specialty Property & Casualty Insurance Segment			Life Insurance Segment			Non-Core Operations			Consolidated
	Number of Events	Losses and LAE		Number of Events	Losses and LAE		Number of Events	Losses and LAE		Number of Events	Losses and LAE
Range of Losses and LAE Per Event1:
Below $5	39	$	9.5	32	$	2.4	49	$	45.7	49	$	54.0
$5 - $10	—	—		—	—		—	—		—	—
$10 - $15	1	13.6		—	—		—	—		—	—
$15 - $20	—	—		—	—		—	—		1	17.2
$20 - $25	—	—		—	—		—	—		—	—
Greater Than $25	—	—		—	—		—	—		—	—
Total	40	$	23.1	32	$	2.4	49	$	45.7	50	$	71.2
1 Current accident year net incurred catastrophe Losses and LAE only

14

Kemper Corporation

Catastrophe Frequency and Severity (continued)

(Dollars in Millions)

(Unaudited)

	Three Months Ended September 30, 2023
	Specialty Property & Casualty Insurance Segment			Life Insurance Segment			Non-Core Operations			Consolidated
	Number of Events	Losses and LAE		Number of Events	Losses and LAE		Number of Events	Losses and LAE		Number of Events	Losses and LAE
Range of Losses and LAE Per Event1:
Below $5	18	$	6.2	12	$	0.5	20	$	14.1	22	$	20.8
$5 - $10	—	—		—	—		—	—		—	—
$10 - $15	—	—		—	—		—	—		—	—
$15 - $20	—	—		—	—		—	—		—	—
$20 - $25	—	—		—	—		—	—		—	—
Greater Than $25	—	—		—	—		—	—		—	—
Total	18	$	6.2	12	$	0.5	20	$	14.1	22	$	20.8
	Three Months Ended September 30, 2022
	Specialty Property & Casualty Insurance Segment			Life Insurance Segment			Non-Core Operations			Consolidated
	Number of Events	Losses and LAE		Number of Events	Losses and LAE		Number of Events	Losses and LAE		Number of Events	Losses and LAE
Range of Losses and LAE Per Event1:
Below $5	12	$	1.2	7	$	1.4	16	$	10.8	15	$	9.8
$5 - $10	—	—		—	—		—	—		—	—
$10 - $15	1	13.6		—	—		—	—		—	—
$15 - $20	—	—		—	—		—	—		1	17.2
$20 - $25	—	—		—	—		—	—		—	—
Greater Than $25	—	—		—	—		—	—		—	—
Total	13	$	14.8	7	$	1.4	16	$	10.8	16	$	27.0
1 Current accident year net incurred catastrophe Losses and LAE only

15

Kemper Corporation

Specialty Property & Casualty Insurance Segment

Results of Operations and Selected Financial Information

(Dollars in Millions)

(Unaudited)

	Three Months Ended																					Nine Months Ended
	Sep 30, 2023			Jun 30, 2023			Mar 31, 2023			Dec 31, 2022			Sep 30, 2022			Jun 30, 2022			Mar 31, 2022				Sep 30, 2023			Sep 30, 2022
Results of Operations
Net Premiums Written	$	733.0		$	830.6		$	1,022.1		$	922.3		$	968.5		$	1,019.9		$	1,023.7			$	2,585.7		$	3,012.1
Total Specialty P&C:
Personal Automobile	724.0			766.6			787.9			830.4			858.8			905.8			901.7				2,278.5			2,666.3
Commercial Automobile	166.4			165.7			156.3			151.2			140.7			137.9			119.9				488.4			398.5
Earned Premium	$	890.4		$	932.3		$	944.2		$	981.6		$	999.5		$	1,043.7		$	1,021.6			$	2,766.9		$	3,064.8
Net Investment Income	42.7			44.5			38.5			37.9			33.9			34.0			34.9				125.7			102.8
Change in Value of Alternative Energy Partnership Investments	0.5			0.4			0.4			0.7			0.3			(2.5)			(8.4)				1.3			(10.6)
Other Income	1.6			0.7			0.9			1.0			2.3			1.0			1.7				3.2			5.0
Total Revenues	935.2			977.9			984.0			1,021.2			1,036.0			1,076.2			1,049.8				2,897.1			3,162.0
Incurred Losses and LAE related to:
Current Year:
Non-catastrophe Losses and LAE	712.1			763.9			825.4			859.3			868.0			930.2			911.7				2,301.4			2,709.9
Catastrophe Losses and LAE	6.2			17.4			8.4			(0.1)			14.8			6.2			2.1				32.0			23.1
Prior Years:
Non-catastrophe Losses and LAE	78.8			25.0			31.6			10.2			(6.6)			(14.4)			(3.8)				135.4			(24.8)
Catastrophe Losses and LAE	(1.0)			(0.9)			(0.5)			(0.1)			0.2			(0.2)			0.7				(2.4)			0.7
Total Incurred Losses and LAE	796.1			805.4			864.9			869.3			876.4			921.8			910.7				2,466.4			2,708.9
Insurance Expenses	182.3			187.5			193.8			198.4			198.8			205.4			199.3				563.6			603.5
Segment Adjusted Operating Loss	(43.2)			(15.0)			(74.7)			(46.5)			(39.2)			(51.0)			(60.2)				(132.9)			(150.4)
Income Tax Benefit	10.0			4.2			16.3			11.4			10.5			12.1			15.5				30.5			38.1
Total Segment Adjusted Net Operating Loss	$	(33.2)		$	(10.8)		$	(58.4)		$	(35.1)		$	(28.7)		$	(38.9)		$	(44.7)			$	(102.4)		$	(112.3)
Ratios Based On Earned Premiums
Current Year Non-catastrophe Losses and LAE Ratio	80.0		%	81.9		%	87.5		%	87.6		%	86.9		%	89.1		%	89.2		%		83.1		%	88.4		%
Current Year Catastrophe Losses and LAE Ratio	0.7			1.9			0.9			—			1.5			0.6			0.2				1.2			0.8
Prior Years Non-catastrophe Losses and LAE Ratio	8.8			2.7			3.3			1.0			(0.7)			(1.4)			(0.4)				4.9			(0.8)
Prior Years Catastrophe Losses and LAE Ratio	(0.1)			(0.1)			(0.1)			—			—			—			0.1				(0.1)			—
Total Incurred Loss and LAE Ratio	89.4			86.4			91.6			88.6			87.7			88.3			89.1				89.1			88.4
Insurance Expense Ratio	20.5			20.1			20.5			20.2			19.9			19.7			19.5				20.4			19.7
Combined Ratio	109.9		%	106.5		%	112.1		%	108.8		%	107.6		%	108.0		%	108.6		%		109.5		%	108.1		%
Underlying Combined Ratio 1
Current Year Non-catastrophe Losses and LAE Ratio	80.0		%	81.9		%	87.5		%	87.6		%	86.9		%	89.1		%	89.2		%		83.1		%	88.4		%
Insurance Expense Ratio	20.5			20.1			20.5			20.2			19.9			19.7			19.5				20.4			19.7
Underlying Combined Ratio	100.5		%	102.0		%	108.0		%	107.8		%	106.8		%	108.8		%	108.7		%		103.5		%	108.1		%
Non-GAAP Measure Reconciliation
Combined Ratio as Reported	109.9		%	106.5		%	112.1		%	108.8		%	107.6		%	108.0		%	108.6		%		109.5		%	108.1		%
Less:
Current Year Catastrophe Losses and LAE Ratio	0.7			1.9			0.9			—			1.5			0.6			0.2				1.2			0.8
Prior Years Non-catastrophe Losses and LAE Ratio	8.8			2.7			3.3			1.0			(0.7)			(1.4)			(0.4)				4.9			(0.8)
Prior Years Catastrophe Losses and LAE Ratio	(0.1)			(0.1)			(0.1)			—			—			—			0.1				(0.1)			—
Underlying Combined Ratio	100.5		%	102.0		%	108.0		%	107.8		%	106.8		%	108.8		%	108.7		%		103.5		%	108.1		%
1 Underlying Combined Ratio is a non-GAAP measure, which is computed as the difference between three operating ratios: the combined ratio, the effect of catastrophes (excluding development of prior-year catastrophes) on the combined ratio and the effect of prior-year reserve development at the reporting date (including development on prior-year catastrophes) on the combined ratio.

16

Kemper Corporation

Specialty Property & Casualty Insurance Segment

Results of Operations and Selected Financial Information (continued)

(Dollars in Millions)

(Unaudited)

	Sep 30, 2023		Jun 30, 2023		Mar 31, 2023		Dec 31, 2022		Sep 30, 2022		Jun 30, 2022		Mar 31, 2022
Insurance Reserves:
Non-Standard Automobile	$	1,761.6	$	1,741.4	$	1,805.6	$	1,875.8	$	1,857.0	$	1,915.2	$	1,952.3
Commercial Automobile	570.3		530.8		491.4		445.3		417.8		385.9		356.5
Insurance Reserves	$	2,331.9	$	2,272.2	$	2,297.0	$	2,321.1	$	2,274.8	$	2,301.1	$	2,308.8
Insurance Reserves:
Loss and Allocated LAE Reserves:
Case and Allocated LAE	$	1,048.0	$	1,061.7	$	1,094.8	$	1,099.9	$	1,110.7	$	1,151.0	$	1,166.0
Incurred but Not Reported	1,107.7		1,036.7		1,027.0		1,041.2		968.2		940.4		934.0
Total Loss Reserves	2,155.7		2,098.4		2,121.8		2,141.1		2,078.9		2,091.4		2,100.0
Unallocated LAE Reserves	176.2		173.8		175.2		180.0		195.9		209.7		208.8
Insurance Reserves	$	2,331.9	$	2,272.2	$	2,297.0	$	2,321.1	$	2,274.8	$	2,301.1	$	2,308.8

17

Kemper Corporation

Specialty Property & Casualty Insurance Segment

Personal Automobile Insurance - Results of Operations and Selected Financial Information

(Dollars in Millions)

(Unaudited)

	Three Months Ended																					Nine Months Ended
	Sep 30, 2023			Jun 30, 2023			Mar 31, 2023			Dec 31, 2022			Sep 30, 2022			Jun 30, 2022			Mar 31, 2022				Sep 30, 2023			Sep 30, 2022
Results of Operations
Net Premiums Written	$	583.9		$	687.4		$	842.4		$	762.8		$	805.2		$	852.3		$	884.8			$	2,113.7		$	2,542.3
Earned Premiums	$	724.0		$	766.6		$	787.9		$	830.4		$	858.8		$	905.8		$	901.7			$	2,278.5		$	2,666.3
Net Investment Income	32.5			33.8			29.9			29.7			26.5			26.6			27.2				96.2			80.3
Change in Value of Alternative Energy Partnership Investments	0.4			0.3			0.3			0.5			0.3			(1.8)			(6.0)				1.0			(7.5)
Other Income	1.6			0.7			0.9			1.0			2.3			1.0			1.7				3.2			5.0
Total Revenues	758.5			801.4			819.0			861.6			887.9			931.6			924.6				2,378.9			2,744.1
Incurred Losses and LAE related to:
Current Year:
Non-catastrophe Losses and LAE	583.5			638.7			697.6			739.8			757.8			828.6			827.7				1,919.8			2,414.1
Catastrophe Losses and LAE	5.0			15.0			7.7			(0.2)			13.1			5.8			2.0				27.7			20.9
Prior Years:
Non-catastrophe Losses and LAE	71.8			18.0			23.4			14.1			(6.7)			(16.5)			(9.0)				113.2			(32.2)
Catastrophe Losses and LAE	(0.9)			(0.9)			(0.5)			(0.1)			0.1			(0.2)			0.7				(2.3)			0.6
Total Incurred Losses and LAE	659.4			670.8			728.2			753.6			764.3			817.7			821.4				2,058.4			2,403.4
Insurance Expenses	155.3			157.1			162.0			172.2			172.9			179.7			177.3				474.4			529.9
Adjusted Operating Loss	(56.2)			(26.5)			(71.2)			(64.2)			(49.3)			(65.8)			(74.1)				(153.9)			(189.2)
Income Tax Benefit	12.4			6.3			15.5			14.7			12.3			14.9			17.7				34.2			44.9
Total Product Line Adjusted Net Operating Loss	$	(43.8)		$	(20.2)		$	(55.7)		$	(49.5)		$	(37.0)		$	(50.9)		$	(56.4)			$	(119.7)		$	(144.3)
Ratios Based On Earned Premiums
Current Year Non-catastrophe Losses and LAE Ratio	80.6		%	83.3		%	88.5		%	89.1		%	88.3		%	91.5		%	91.8		%		84.2		%	90.5		%
Current Year Catastrophe Losses and LAE Ratio	0.7			2.0			1.0			—			1.5			0.6			0.2				1.2			0.8
Prior Years Non-catastrophe Losses and LAE Ratio	9.9			2.3			3.0			1.7			(0.8)			(1.8)			(1.0)				5.0			(1.2)
Prior Years Catastrophe Losses and LAE Ratio	(0.1)			(0.1)			(0.1)			—			—			—			0.1				(0.1)			—
Total Incurred Loss and LAE Ratio	91.1			87.5			92.4			90.8			89.0			90.3			91.1				90.3			90.1
Insurance Expense Ratio	21.5			20.5			20.6			20.7			20.1			19.8			19.7				20.8			19.9
Combined Ratio	112.6		%	108.0		%	113.0		%	111.5		%	109.1		%	110.1		%	110.8		%		111.1		%	110.0		%
Underlying Combined Ratio 1
Current Year Non-catastrophe Losses and LAE Ratio	80.6		%	83.3		%	88.5		%	89.1		%	88.3		%	91.5		%	91.8		%		84.2		%	90.5		%
Insurance Expense Ratio	21.5			20.5			20.6			20.7			20.1			19.8			19.7				20.8			19.9
Underlying Combined Ratio	102.1		%	103.8		%	109.1		%	109.8		%	108.4		%	111.3		%	111.5		%		105.0		%	110.4		%
Non-GAAP Measure Reconciliation
Combined Ratio	112.6		%	108.0		%	113.0		%	111.5		%	109.1		%	110.1		%	110.8		%		111.1		%	110.0		%
Less:
Current Year Catastrophe Losses and LAE Ratio	0.7			2.0			1.0			—			1.5			0.6			0.2				1.2			0.8
Prior Years Non-catastrophe Losses and LAE Ratio	9.9			2.3			3.0			1.7			(0.8)			(1.8)			(1.0)				5.0			(1.2)
Prior Years Catastrophe Losses and LAE Ratio	(0.1)			(0.1)			(0.1)			—			—			—			0.1				(0.1)			—
Underlying Combined Ratio	102.1		%	103.8		%	109.1		%	109.8		%	108.4		%	111.3		%	111.5		%		105.0		%	110.4		%
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.

18

Kemper Corporation

Specialty Property & Casualty Insurance Segment

Commercial Automobile Insurance - Results of Operations and Selected Financial Information

(Dollars in Millions)

(Unaudited)

	Three Months Ended																					Nine Months Ended
	Sep 30, 2023			Jun 30, 2023			Mar 31, 2023			Dec 31, 2022			Sep 30, 2022			Jun 30, 2022			Mar 31, 2022				Sep 30, 2023			Sep 30, 2022
Results of Operations
Net Premiums Written	$	149.1		$	143.2		$	179.7		$	159.5		$	163.3		$	167.6		$	138.9			$	472.0		$	469.8
Earned Premiums	$	166.4		$	165.7		$	156.3		$	151.2		$	140.7		$	137.9		$	119.9			$	488.4		$	398.5
Net Investment Income	10.2			10.7			8.6			8.2			7.4			7.4			7.7				29.5			22.5
Change in Value of Alternative Energy Partnership Investments	0.1			0.1			0.1			0.2			—			(0.7)			(2.4)				0.3			(3.1)
Total Revenues	176.7			176.5			165.0			159.6			148.1			144.6			125.2				518.2			417.9
Incurred Losses and LAE related to:
Current Year:
Non-catastrophe Losses and LAE	128.6			125.2			127.8			119.5			110.2			101.6			84.0				381.6			295.8
Catastrophe Losses and LAE	1.2			2.4			0.7			0.1			1.7			0.4			0.1				4.3			2.2
Prior Years:
Non-catastrophe Losses and LAE	7.0			7.0			8.2			(3.9)			0.1			2.1			5.2				22.2			7.4
Catastrophe Losses and LAE	(0.1)			—			—			—			0.1			—			—				(0.1)			0.1
Total Incurred Losses and LAE	136.7			134.6			136.7			115.7			112.1			104.1			89.3				408.0			305.5
Insurance Expenses	27.0			30.4			31.8			26.2			25.9			25.7			22.0				89.2			73.6
Adjusted Operating Income (Loss)	13.0			11.5			(3.5)			17.7			10.1			14.8			13.9				21.0			38.8
Income Tax (Expense) Benefit	(2.4)			(2.1)			0.8			(3.3)			(1.8)			(2.8)			(2.2)				(3.7)			(6.8)
Total Product Line Adjusted Net Operating Income (Loss)	$	10.6		$	9.4		$	(2.7)		$	14.4		$	8.3		$	12.0		$	11.7			$	17.3		$	32.0
Ratios Based On Earned Premiums
Current Year Non-catastrophe Losses and LAE Ratio	77.4		%	75.6		%	81.9		%	79.0		%	78.3		%	73.7		%	70.1		%		78.1		%	74.2		%
Current Year Catastrophe Losses and LAE Ratio	0.7			1.4			0.4			0.1			1.2			0.3			0.1				0.9			0.6
Prior Years Non-catastrophe Losses and LAE Ratio	4.2			4.2			5.2			(2.6)			0.1			1.5			4.3				4.5			1.9
Prior Years Catastrophe Losses and LAE Ratio	(0.1)			—			—			—			0.1			—			—				—			—
Total Incurred Loss and LAE Ratio	82.2			81.2			87.5			76.5			79.7			75.5			74.5				83.5			76.7
Insurance Expense Ratio	16.2			18.3			20.3			17.3			18.4			18.6			18.3				18.3			18.5
Combined Ratio	98.4		%	99.5		%	107.8		%	93.8		%	98.1		%	94.1		%	92.8		%		101.8		%	95.2		%
Underlying Combined Ratio 1
Current Year Non-catastrophe Losses and LAE Ratio	77.4		%	75.6		%	81.9		%	79.0		%	78.3		%	73.7		%	70.1		%		78.1		%	74.2		%
Insurance Expense Ratio	16.2			18.3			20.3			17.3			18.4			18.6			18.3				18.3			18.5
Underlying Combined Ratio	93.6		%	93.9		%	102.2		%	96.3		%	96.7		%	92.3		%	88.4		%		96.4		%	92.7		%
Non-GAAP Measure Reconciliation
Combined Ratio	98.4		%	99.5		%	107.8		%	93.8		%	98.1		%	94.1		%	92.8		%		101.8		%	95.2		%
Less:
Current Year Catastrophe Losses and LAE Ratio	0.7			1.4			0.4			0.1			1.2			0.3			0.1				0.9			0.6
Prior Years Non-catastrophe Losses and LAE Ratio	4.2			4.2			5.2			(2.6)			0.1			1.5			4.3				4.5			1.9
Prior Years Catastrophe Losses and LAE Ratio	(0.1)			—			—			—			0.1			—			—				—			—
Underlying Combined Ratio	93.6		%	93.9		%	102.2		%	96.3		%	96.7		%	92.3		%	88.4		%		96.4		%	92.7		%
1 Underlying Combined Ratio is a non-GAAP measure, which is computed as the difference between three operating ratios: the combined ratio, the effect of catastrophes (excluding development of prior-year catastrophes) on the combined ratio and the effect of prior-year reserve development at the reporting date (including development on prior-year catastrophes) on the combined ratio.

19

Kemper Corporation

Life Insurance Segment

Results of Operations and Selected Financial Information

(Dollars in Millions)

(Unaudited)

	Three Months Ended														Nine Months Ended
	Sep 30, 2023		Jun 30, 2023		Mar 31, 2023		Dec 31, 2022		Sep 30, 2022		Jun 30, 2022		Mar 31, 2022		Sep 30, 2023		Sep 30, 2022
Results of Operations
Earned Premiums	$	102.1	$	102.2	$	99.3	$	142.6	$	142.1	$	144.0	$	142.8	$	303.6	$	428.9
Net Investment Income	49.4		47.1		49.8		52.6		52.6		61.9		49.4		146.3		163.9
Change in Value of Alternative Energy Partnership Investments	0.2		0.2		0.2		0.3		0.1		(1.3)		(4.4)		0.6		(5.6)
Other (Loss) Income	(0.1)		0.1		(0.4)		0.2		—		(0.8)		—		(0.4)		(0.8)
Total Revenues	151.6		149.6		148.9		195.7		194.8		203.8		187.8		450.1		586.4
Policyholders’ Benefits and Incurred Losses and LAE	64.7		68.3		69.9		88.1		88.5		94.3		89.9		202.9		272.7
Insurance Expenses	69.4		71.2		64.2		81.1		90.7		85.6		85.9		204.8		262.2
Segment Adjusted Operating Income	17.5		10.1		14.8		26.5		15.6		23.9		12.0		42.4		51.5
Income Tax Expense	(2.8)		(1.2)		(1.6)		(3.5)		(1.6)		(3.7)		(0.4)		(5.6)		(5.7)
Total Segment Adjusted Net Operating Income	$	14.7	$	8.9	$	13.2	$	23.0	$	14.0	$	20.2	$	11.6	$	36.8	$	45.8

20

Kemper Corporation

Life Insurance Segment

Results of Operations and Selected Financial Information (continued)

(Dollars in Millions)

(Unaudited)

	Sep 30, 2023		Jun 30, 2023		Mar 31, 2023		Dec 31, 2022		Sep 30, 2022 1		Jun 30, 2022		Mar 31, 2022
Insurance Reserves:
Future Policyholder Benefits	$	3,048.7	$	3,315.2	$	3,346.9	$	3,218.5	$	3,190.2	$	3,503.4	$	4,015.4
Incurred Losses and LAE Reserves:
Life	44.6		44.2		48.3		53.3		55.7		56.7		63.6
Accident and Health	4.8		4.4		4.4		4.3		23.4		25.0		25.2
Property	2.7		2.6		2.7		2.3		3.6		3.1		3.1
Total Incurred Losses and LAE Reserves	52.1		51.2		55.4		59.9		82.7		84.8		91.9
Insurance Reserves	$	3,100.8	$	3,366.4	$	3,402.3	$	3,278.4	$	3,272.9	$	3,588.2	$	4,107.3
1 Includes reserves classified as Held-for-Sale Liabilities on the Condensed Consolidated Balance Sheets.

21

Kemper Corporation

Life Insurance Segment

Life Insurance - Results of Operations and Selected Financial Information

(Dollars in Millions)

(Unaudited)

	Three Months Ended															Nine Months Ended
		Sep 30, 2023		Jun 30, 2023		Mar 31, 2023		Dec 31, 2022		Sep 30, 2022		Jun 30, 2022		Mar 31, 2022			Sep 30, 2023		Sep 30, 2022
Results of Operations
Earned Premiums		$	84.9	$	84.8	$	82.2	$	99.0	$	84.3	$	86.8	$	82.7		$	251.9	$	253.8
Net Investment Income		49.0		46.6		49.5		51.0		51.0		60.1		47.9			145.1		159.0
Change in Value of Alternative Energy Partnership Investments		0.2		0.2		0.2		0.3		0.1		(1.3)		(4.0)			0.6		(5.2)
Other Income (Loss)		—		—		(0.5)		0.1		(0.1)		(1.1)		—			(0.5)		(1.2)
Total Revenues		134.1		131.6		131.4		150.4		135.3		144.5		126.6			397.1		406.4
Policyholders’ Benefits and Incurred Losses and LAE		59.1		60.0		64.1		70.4		61.5		64.9		60.4			183.2		186.8
Insurance Expenses		59.9		62.3		56.1		58.9		61.7		58.9		58.2			178.3		178.8
Adjusted Operating Income		15.1		9.3		11.2		21.1		12.1		20.7		8.0			35.6		40.8
Income Tax (Expense) Benefit		(2.2)		(1.0)		(0.9)		(2.6)		(0.9)		(3.0)		0.3			(4.1)		(3.6)
Total Product Line Adjusted Net Operating Income		$	12.9	$	8.3	$	10.3	$	18.5	$	11.2	$	17.7	$	8.3		$	31.5	$	37.2

Kemper Corporation

Life Insurance Segment

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

(Dollars in Millions)

(Unaudited)

	Three Months Ended														Nine Months Ended
	Sep 30, 2023		Jun 30, 2023		Mar 31, 2023		Dec 31, 2022		Sep 30, 2022		Jun 30, 2022		Mar 31, 2022			Sep 30, 2023		Sep 30, 2022
Results of Operations
Earned Premiums	$	5.8	$	5.8	$	5.9	$	31.4	$	45.9	$	45.1	$	45.8		$	17.5	$	136.8
Net Investment Income	—		—		—		0.8		0.8		1.0		0.7			—		2.5
Change in Value of Alternative Energy Partnership Investments	—		—		—		—		—		—		(0.1)			—		(0.1)
Other (Loss) Income	(0.1)		0.1		0.1		0.1		0.1		0.3		—			0.1		0.4
Total Revenues	5.7		5.9		6.0		32.3		46.8		46.4		46.4			17.6		139.6
Policyholders’ Benefits and Incurred Losses and LAE	2.5		5.1		2.0		16.2		22.3		24.5		23.5			9.6		70.3
Insurance Expenses	3.4		3.1		2.0		15.8		22.4		20.1		20.8			8.5		63.3
Adjusted Operating (Loss) Income	(0.2)		(2.3)		2.0		0.3		2.1		1.8		2.1			(0.5)		6.0
Income Tax Benefit (Expense)	—		0.5		(0.4)		0.1		(0.4)		(0.4)		(0.4)			0.1		(1.2)
Total Product Line Adjusted Net Operating (Loss) Income	$	(0.2)	$	(1.8)	$	1.6	$	0.4	$	1.7	$	1.4	$	1.7		$	(0.4)	$	4.8

22

Kemper Corporation

Life Insurance Segment

Property Insurance - Results of Operations and Selected Financial Information

(Dollars in Millions)

(Unaudited)

	Three Months Ended																					Nine Months Ended
	Sep 30, 2023			Jun 30, 2023			Mar 31, 2023			Dec 31, 2022			Sep 30, 2022			Jun 30, 2022			Mar 31, 2022				Sep 30, 2023			Sep 30, 2022
Results of Operations
Earned Premiums	$	11.4		$	11.6		$	11.2		$	12.2		$	11.9		$	12.1		$	14.3			$	34.2		$	38.3
Net Investment Income	0.4			0.5			0.3			0.8			0.8			0.8			0.8				1.2			2.4
Change in Value of Alternative Energy Partnership Investments	—			—			—			—			—			—			(0.3)				—			(0.3)
Total Revenues	11.8			12.1			11.5			13.0			12.7			12.9			14.8				35.4			40.4
Incurred Losses and LAE related to:
Current Year:
Non-catastrophe Losses and LAE	2.2			2.2			2.2			2.0			2.8			3.6			4.1				6.6			10.5
Catastrophe Losses and LAE	0.5			0.8			0.6			(0.6)			1.4			0.6			0.4				1.9			2.4
Prior Years:
Non-catastrophe Losses and LAE	0.1			0.2			0.8			0.1			0.1			0.5			0.6				1.1			1.2
Catastrophe Losses and LAE	0.3			—			0.2			—			0.4			0.2			0.9				0.5			1.5
Total Incurred Losses and LAE	3.1			3.2			3.8			1.5			4.7			4.9			6.0				10.1			15.6
Insurance Expenses	6.1			5.8			6.1			6.4			6.6			6.6			6.9				18.0			20.1
Adjusted Operating Income	2.6			3.1			1.6			5.1			1.4			1.4			1.9				7.3			4.7
Income Tax Expense	(0.6)			(0.7)			(0.3)			(1.0)			(0.3)			(0.3)			(0.3)				(1.6)			(0.9)
Total Product Line Adjusted Net Operating Income	$	2.0		$	2.4		$	1.3		$	4.1		$	1.1		$	1.1		$	1.6			$	5.7		$	3.8
Ratios Based On Earned Premiums
Current Year Non-catastrophe Losses and LAE Ratio	19.3		%	19.0		%	19.6		%	16.4		%	23.5		%	29.7		%	28.7		%		19.2		%	27.4		%
Current Year Catastrophe Losses and LAE Ratio	4.4			6.9			5.4			(4.9)			11.8			5.0			2.8				5.6			6.3
Prior Years Non-catastrophe Losses and LAE Ratio	0.9			1.7			7.1			0.8			0.8			4.1			4.2				3.2			3.1
Prior Years Catastrophe Losses and LAE Ratio	2.6			—			1.8			—			3.4			1.7			6.3				1.5			3.9
Total Incurred Loss and LAE Ratio	27.2			27.6			33.9			12.3			39.5			40.5			42.0				29.5			40.7
Insurance Expense Ratio	53.5			50.0			54.5			52.5			55.5			54.5			48.3				52.6			52.5
Combined Ratio	80.7		%	77.6		%	88.4		%	64.8		%	95.0		%	95.0		%	90.3		%		82.1		%	93.2		%
Underlying Combined Ratio 1
Current Year Non-catastrophe Losses and LAE Ratio	19.3		%	19.0		%	19.6		%	16.4		%	23.5		%	29.7		%	28.7		%		19.2		%	27.4		%
Insurance Expense Ratio	53.5			50.0			54.5			52.5			55.5			54.5			48.3				52.6			52.5
Underlying Combined Ratio	72.8		%	69.0		%	74.1		%	68.9		%	79.0		%	84.2		%	77.0		%		71.8		%	79.9		%
Non-GAAP Measure Reconciliation
Combined Ratio	80.7		%	77.6		%	88.4		%	64.8		%	95.0		%	95.0		%	90.3		%		82.1		%	93.2		%
Less:
Current Year Catastrophe Losses and LAE Ratio	4.4			6.9			5.4			(4.9)			11.8			5.0			2.8				5.6			6.3
Prior Years Non-catastrophe Losses and LAE Ratio	0.9			1.7			7.1			0.8			0.8			4.1			4.2				3.2			3.1
Prior Years Catastrophe Losses and LAE Ratio	2.6			—			1.8			—			3.4			1.7			6.3				1.5			3.9
Underlying Combined Ratio	72.8		%	69.0		%	74.1		%	68.9		%	79.0		%	84.2		%	77.0		%		71.8		%	79.9		%
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.

23

Kemper Corporation

Expenses

(Dollars in Millions)

(Unaudited)

	Three Months Ended														Nine Months Ended
	Sep 30, 2023		Jun 30, 2023		Mar 31, 2023		Dec 31, 2022		Sep 30, 2022		Jun 30, 2022		Mar 31, 2022			Sep 30, 2023		Sep 30, 2022
Insurance Expenses:
Commissions	$	130.8	$	165.3	$	166.9	$	165.7	$	176.3	$	190.9	$	191.9		$	463.0	$	559.1
General Expenses	85.9		74.5		94.2		86.4		93.5		91.4		87.1			254.6		272.0
Premium Taxes	17.8		20.5		23.6		25.3		23.6		25.2		25.4			61.9		74.2
Total Costs Incurred	234.5		260.3		284.7		277.4		293.4		307.5		304.4			779.5		905.3
Net Policy Acquisition Costs Amortized (Deferred)	24.0		5.3		(15.9)		9.9		6.5		(0.5)		(1.7)			13.4		4.3
Amortization of Valuation of Business Acquired ("VOBA")	0.5		0.5		0.5		0.7		0.6		0.7		2.1			1.5		3.4
Insurance Expenses	259.0		266.1		269.3		288.0		300.5		307.7		304.8			794.4		913.0
Loss from Early Extinguishment of Debt	—		—		—		—		—		—		3.7			—		3.7
Interest and Other Expenses:
Interest Expense	14.1		14.0		14.1		13.7		14.3		14.0		12.7			42.2		41.0
Other Expenses:
Acquisition and Disposition Related Transaction, Integration, Restructuring and Other Costs	43.3		29.5		29.1		35.6		12.7		9.9		4.7			101.9		27.3
Pension Settlement Expense	70.2		—		—		—		—		—		—			70.2		—
Other	28.4		34.8		34.2		37.2		36.5		29.6		36.7			97.4		102.8
Other Expenses	141.9		64.3		63.3		72.8		49.2		39.5		41.4			269.5		130.1
Interest and Other Expenses	156.0		78.3		77.4		86.5		63.5		53.5		54.1			311.7		171.1
Goodwill Impairment	—		49.6		—		—		—		—		—			49.6		—
Total Expenses	$	415.0	$	394.0	$	346.7	$	374.5	$	364.0	$	361.2	$	362.6		$	1,155.7	$	1,087.8

24

Kemper Corporation

Details of Investment Performance

(Dollars in Millions)

(Unaudited)

	Three Months Ended														Nine Months Ended
	Sep 30, 2023		Jun 30, 2023		Mar 31, 2023		Dec 31, 2022		Sep 30, 2022		Jun 30, 2022		Mar 31, 2022			Sep 30, 2023		Sep 30, 2022
Net Investment Income
Interest on Fixed Income Securities	$	86.5	$	87.1	$	86.2	$	81.7	$	76.9	$	72.8	$	68.7		$	259.8	$	218.4
Dividends on Equity Securities Excluding Alternative Investments	1.2		1.2		1.0		2.0		1.1		1.7		1.5			3.4		4.3
Alternative Investments:
Equity Method Limited Liability Investments	4.3		2.8		1.1		3.3		(0.6)		15.3		13.3			8.2		28.0
Limited Liability Investments Included in Equity Securities	5.4		6.3		2.6		7.2		8.8		18.5		7.6			14.3		34.9
Total Alternative Investments	9.7		9.1		3.7		10.5		8.2		33.8		20.9			22.5		62.9
Short-term Investments	6.0		3.6		2.3		2.3		1.1		0.2		0.1			11.9		1.4
Loans to Policyholders	5.1		5.1		5.4		5.2		5.5		5.3		5.5			15.6		16.3
Real Estate	2.3		1.9		2.4		2.5		3.1		2.3		2.2			6.6		7.6
Company-Owned Life Insurance	6.4		7.4		8.8		9.9		9.9		9.8		8.3			22.6		28.0
Other	1.8		5.3		3.0		2.6		1.7		1.7		1.7			10.1		5.1
Total Investment Income	119.0		120.7		112.8		116.7		107.5		127.6		108.9			352.5		344.0
Investment Expenses:
Real Estate	1.7		2.2		2.1		2.1		2.3		1.0		2.5			6.0		5.8
Other Investment Expenses	10.3		12.2		8.9		8.3		7.4		8.1		6.4			31.4		21.9
Total Investment Expenses	12.0		14.4		11.0		10.4		9.7		9.1		8.9			37.4		27.7
Net Investment Income	$	107.0	$	106.3	$	101.8	$	106.3	$	97.8	$	118.5	$	100.0		$	315.1	$	316.3
Net Realized Investment Gains (Losses)
Fixed Maturities:
Gains on Sales	0.8		$	0.4	$	1.1	$	3.6	14.2		$	13.4	$	0.4		$	2.3	$	28.0
Losses on Sales	(1.2)		(6.0)		(3.3)		(4.4)		(23.9)		(2.8)		(0.8)			(10.5)		(27.5)
(Losses) Gains on Hedging Activity	(29.4)		(8.7)		8.4		1.7		(0.3)		0.3		—			(29.7)		—
Equity Securities:
Gains on Sales	0.5		0.1		—		3.1		4.5		0.1		2.0			0.6		6.6
Losses on Sales	(1.1)		(0.1)		—		(0.1)		(6.6)		—		(0.1)			(1.2)		(6.7)
Other Investments:
Gains on Sales	—		—		0.2		—		—		—		—			0.2		—
Losses on Sales	0.1		(0.1)		—		—		—		—		—			—		—
Net Realized Investment (Losses) Gains	$	(30.3)	$	(14.4)	$	6.4	$	3.9	$	(12.1)	$	11.0	$	1.5		$	(38.3)	$	0.4
Net Impairment (Losses) Gains Recognized in Earnings
Fixed Maturities	$	(2.0)	$	—	$	2.1	$	(3.7)	$	(8.3)	$	(4.9)	$	(8.9)		$	0.1	$	(22.1)
Net Impairment (Losses) Gains Recognized in Earnings	$	(2.0)	$	—	$	2.1	$	(3.7)	$	(8.3)	$	(4.9)	$	(8.9)		$	0.1	$	(22.1)

25

Kemper Corporation

Details of Invested Assets

(Dollars in Millions)

(Unaudited)

	Sep 30, 2023				Dec 31, 2022				Dec 31, 2021
	Carrying Value		Percent of Total1		Carrying Value		Percent of Total1		Carrying Value		Percent of Total1
Fixed Maturities Reported at Fair Value:
U.S. Government and Government Agencies and Authorities	$	487.2	5.8	%	$	528.0	6.0	%	$	637.4	6.1	%
States and Political Subdivisions	1,320.2		15.7		1,568.9		17.8		1,890.1		18.2
Foreign Governments	4.2		—		4.1		—		5.5		0.1
Corporate Securities:
Bonds and Notes	3,394.4		40.3		3,539.4		40.4		4,386.9		42.2
Redeemable Preferred Stocks	7.8		0.1		8.0		0.1		7.4		0.1
Collateralized Loan Obligations	956.2		11.3		953.9		10.9		752.1		7.2
Other Mortgage- and Asset-backed	304.5		3.6		292.5		3.3		307.5		3.0
Total Fixed Maturities Reported at Fair Value	6,474.5		76.8		6,894.8		78.5		7,986.9		76.9
Equity Securities Reported at Fair Value:
Preferred Stocks	31.6		0.4		39.8		0.5		51.8		0.5
Common Stocks	1.2		—		2.1		—		21.8		0.2
Other Equity Interests:
Exchange Traded Funds	7.1		0.1		12.2		0.1		432.0		4.2
Limited Liability Companies and Limited Partnerships	193.5		2.3		189.1		2.2		325.0		3.1
Total Equity Securities Reported at Fair Value	233.4		2.8		243.2		2.8		830.6		8.0
Equity Method Limited Liability Investments	224.1		2.7		217.0		2.5		241.9		2.3
Alternative Energy Partnership Investments	17.2		0.2		16.3		0.2		39.6		0.4
Short-term Investments at Cost which Approximates Fair Value	418.5		5.0		278.4		3.2		284.1		2.7
Company Owned Life Insurance	506.9		6.0		586.5		6.7		448.1		4.3
Loans to Policyholders	281.8		3.3		283.4		3.2		286.2		2.8
Other Investments:
Equity Securities Reported at Modified Cost	33.1		0.4		38.4		0.4		32.3		0.3
Convertible Securities at Fair Value	45.9		0.5		43.3		0.5		46.4		0.5
Real Estate at Depreciated Cost	95.4		1.1		93.6		1.1		94.0		0.9
Mortgage Loans	98.5		1.2		91.1		1.0		96.8		0.9
Other	0.2		—		3.5		—		0.5		—
Total Other Investments	273.1		3.2		269.9		3.0		270.0		2.6
Total Investments	$	8,429.5	100.0	%	$	8,789.5	100.0	%	$	10,387.4	100.0	%
1 Sum of percentages for individual lines may not equal subtotals and grand total due to rounding.

26

Kemper Corporation

Details of Invested Assets (continued)

(Dollars in Millions)

(Unaudited)

	Sep 30, 2023				Dec 31, 2022				Dec 31, 2021
	Carrying Value		Percent of Total1		Carrying Value		Percent of Total1		Carrying Value		Percent of Total1
S&P Equivalent Rating for Fixed Maturities
AAA, AA, A	$	4,638.6	71.6	%	$	4,896.4	71.0	%	$	5,351.6	67.0	%
BBB	1,562.1		24.1		1,687.4		24.5		2,215.1		27.7
BB, B	211.2		3.3		239.7		3.5		331.0		4.2
CCC or Lower	62.6		1.0		71.3		1.0		89.2		1.1
Total Investments in Fixed Maturities	$	6,474.5	100.0	%	$	6,894.8	100.0	%	$	7,986.9	100.0	%
Duration (in Years)
Total Investments in Fixed Maturities	8.1				8.2				8.5

27

Kemper Corporation

Investment Concentration

(Dollars in Millions)

(Unaudited)

	Sep 30, 2023				Dec 31, 2022				Dec 31, 2021
Fair Value of Non-governmental Fixed Maturities by Industry	Amount		Percent of Total Investments		Amount		Percent of Total Investments		Amount		Percent of Total Investments
Finance, Insurance and Real Estate	$	2,011.5	23.8	%	$	2,007.5	22.8	%	$	1,996.7	19.2	%
Manufacturing	999.4		11.8		1,085.9		12.4		1,571.0		15.1
Transportation, Communication and Utilities	723.8		8.6		733.7		8.3		815.8		7.9
Services	589.1		7.0		602.4		6.9		617.5		5.9
Mining	165.4		2.0		173.3		2.0		254.3		2.4
Retail Trade	140.9		1.7		165.1		1.9		171.4		1.7
Construction	4.3		0.1		11.7		0.1		13.1		0.1
Other	28.5		0.3		14.2		0.2		14.1		0.1
Total Fair Value of Non-governmental Fixed Maturities	$	4,662.9	55.3	%	$	4,793.8	54.6	%	$	5,453.9	52.4	%

	Sep 30, 2023
Ten Largest Investment Exposures 1	Fair Value		Percent of Total Investments
Fixed Maturities:
States including their Political Subdivisions:
California	$	119.8	1.4	%
Texas	112.1		1.3
Michigan	77.8		0.9
New York	71.1		0.8
Georgia	67.8		0.8
Louisiana	59.4		0.7
Pennsylvania	52.6		0.6
Florida	51.5		0.6
Colorado	45.7		0.5
Missouri	39.5		0.5
Total	$	697.3	8.1	%

1Excluding Investments in U.S. Government and Government Agencies and Authorities at September 30, 2023.

28

Kemper Corporation

Municipal Bond Securities

(Dollars in Millions)

(Unaudited)

	Sep 30, 2023
	State General Obligation		Political Subdivision General Obligation		Revenue		Total Fair Value		Percent of Total Muni Bond1		Percent of Total Investments1
California	$	8.0	$	111.8	$	—	$	119.8	9.1	%	1.4	%
Texas	9.5		99.4		3.2		112.1		8.4		1.3
Michigan	—		66.8		11.0		77.8		5.9		0.9
New York	11.3		59.8		—		71.1		5.4		0.8
Georgia	3.9		59.8		4.1		67.8		5.1		0.8
Louisiana	4.1		24.2		31.1		59.4		4.4		0.7
Pennsylvania	2.8		49.8		—		52.6		4.0		0.6
Florida	—		51.5		—		51.5		3.9		0.6
Colorado	—		45.7		—		45.7		3.4		0.5
Missouri	1.1		38.4		—		39.5		3.0		0.5
Oregon	2.2		17.4		18.4		38.0		2.9		0.5
Washington	1.3		26.7		5.1		33.1		2.5		0.4
New Mexico	—		31.1		—		31.1		2.4		0.4
Virginia	—		24.4		6.1		30.5		2.3		0.4
Massachusetts	—		25.0		4.9		29.9		2.3		0.4
Indiana	—		29.6		—		29.6		2.2		0.4
Illinois	0.6		28.4		—		29.0		2.2		0.3
Connecticut	—		15.3		12.8		28.1		2.1		0.3
Minnesota	1.0		26.6		—		27.6		2.1		0.3
Ohio	—		26.2		—		26.2		2.0		0.3
Maryland	—		25.4		—		25.4		1.9		0.3
Tennessee	3.2		17.9		—		21.1		1.6		0.3
Oklahoma	—		20.9		—		20.9		1.6		0.2
Mississippi	—		9.6		10.6		20.2		1.5		0.2
Rhode Island	1.5		15.9		—		17.4		1.3		0.2
North Carolina	1.6		15.6		—		17.2		1.3		0.2
District of Columbia	—		14.5		2.7		17.2		1.3		0.2
New Hampshire	0.4		16.2		—		16.6		1.3		0.2
Nebraska	5.7		8.6		—		14.3		1.1		0.2
Arizona	—		13.4		—		13.4		1.0		0.2
Kentucky	—		12.9		—		12.9		1.0		0.2
South Carolina	—		12.8		—		12.8		1.0		0.2
Utah	—		12.8		—		12.8		1.0		0.2
Alabama	—		11.9		—		11.9		0.9		0.1
North Dakota	—		11.8		—		11.8		0.9		0.1
Iowa	—		10.7		—		10.7		0.8		0.1
Montana	—		10.1		—		10.1		0.8		0.1
Hawaii	3.2		2.6		2.8		8.6		0.7		0.1
Maine	—		7.9		—		7.9		0.6		0.1
All Other States	2.4		30.4		3.8		36.6		2.8		0.4
Total	$	63.8	$	1,139.8	$	116.6	$	1,320.2	100.0	%	15.6	%
1 Sum of percentages for individual lines may not equal total due to rounding.

29

Kemper Corporation

Investments in Limited Liability

Companies and Limited Partnerships

(Dollars in Millions)

(Unaudited)

	Unfunded Commitment		Reported Value
Asset Class	Sep 30, 2023		Sep 30, 2023		Dec 31, 2022
Reported as Equity Method Limited Liability Investments:
Mezzanine Debt	$	45.8	$	123.8	$	114.3
Senior Debt	41.3		21.7		21.6
Distressed Debt	—		8.0		9.4
Secondary Transactions	1.7		8.2		9.3
Leveraged Buyout	0.6		9.9		8.9
Growth Equity	—		1.2		1.2
Real Estate	—		41.6		43.3
Hedge Fund	—		0.1		0.5
Other	—		9.6		8.5
Total Equity Method Limited Liability Investments	89.4		224.1		217.0
Alternative Energy Partnership Investments	—		17.2		16.3
Reported as Other Equity Interests at Fair Value:
Mezzanine Debt	62.8		121.9		106.0
Senior Debt	10.5		25.1		21.9
Distressed Debt	13.0		12.8		12.5
Secondary Transactions	3.1		2.9		3.5
Hedge Funds	—		3.0		18.1
Leveraged Buyout	7.0		21.6		21.6
Growth Equity	6.7		6.1		5.4
Real Estate	0.2		0.1		—
Other	—		—		0.1
Total Reported as Other Equity Interests at Fair Value	103.3		193.5		189.1
Reported as Other Equity Interests at Modified Cost:
Other	—		5.3		8.3
Total Reported as Other Equity Interests at Modified Cost	—		5.3		8.3
Total Investments in Limited Liability Companies and Limited Partnerships	$	192.7	$	440.1	$	430.7

30

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

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

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

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

(ii) Net Realized Investment (Losses) Gains;

(iii) Impairment (Losses) Gains;

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

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

(vi) Goodwill Impairment Charges;

(vii) Non-Core Operations; and

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

Significant non-recurring items are excluded when (a) the nature of the charge or gain is such that it is reasonably unlikely to recur within two years, and (b) there has been no similar charge or gain within the prior two years. The most directly comparable GAAP financial measure is Net Loss. There were no applicable significant non-recurring items that the Company excluded from the calculation of Adjusted Consolidated Net Operating Loss for the three and nine months ended September 30, 2023 or 2022.

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

31

Kemper Corporation

Definitions of Non-GAAP Financial Measures (continued)

process. Goodwill impairment charges are excluded because they are infrequent and non-recurring charges. Non-Core Operations includes the results of our Preferred Insurance business which we expect to fully exit. These results are excluded because they are irrelevant to our ongoing operations and do not qualify for Discontinued Operations under Generally Accepted Accounting Principles ("GAAP"). Significant non-recurring items are excluded because, by their nature, they are not indicative of the Company’s business or economic trends. The preceding non-GAAP financial measures should not be considered a substitute for the comparable GAAP financial measures, as they do not fully recognize the profitability of the Company’s businesses.

32

Kemper Corporation

Definitions of Non-GAAP Financial Measures (continued)

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

	Three Months Ended															Nine Months Ended
Dollars in Millions (Unaudited)		Sep 30, 2023		Jun 30, 2023		Mar 31, 2023		Dec 31, 2022		Sep 30, 2022		Jun 30, 2022		Mar 31, 2022		Sep 30, 2023		Sep 30, 2022
Net Loss		$	(146.4)	$	(97.1)	$	(80.1)	$	(53.3)	$	(74.8)	$	(72.2)	$	(86.3)	$	(323.6)	$	(233.3)
Less: Net Loss attributable to Noncontrolling Interest		(0.1)		—		—		—		—		—		—		(0.1)		—
Net Loss attributable to Kemper Corporation		(146.3)		(97.1)		(80.1)		(53.3)		(74.8)		(72.2)		(86.3)		(323.5)		(233.3)
Less Net Income (Loss) From:
Income (Loss) from Change in Fair Value of Equity and Convertible Securities		2.3		1.9		1.3		—		(8.8)		(32.0)		(22.3)		5.5		(63.1)
Net Realized Investment (Losses) Gains		(22.9)		(12.5)		5.1		3.1		(9.6)		8.7		1.2		(30.3)		0.3
Impairment (Losses) Gains		(0.8)		(0.8)		1.7		(2.9)		(6.6)		(3.9)		(7.0)		0.1		(17.5)
Acquisition and Disposition Related Transaction, Integration, Restructuring and Other Costs		(34.2)		(23.3)		(23.0)		(29.1)		(20.7)		(7.8)		(3.7)		(80.5)		(32.2)
Debt Extinguishment, Pension Settlement and Other Charges		(55.5)		—		—		—		—		—		(2.9)		(55.5)		(2.9)
Goodwill Impairment Charge		—		(45.5)		—		—		—		—		—		(45.5)		—
Non-Core Operations		(7.3)		(2.7)		(9.5)		(0.9)		(2.1)		(16.8)		(6.1)		(19.5)		(25.0)
Adjusted Consolidated Net Operating Loss		$	(27.9)	$	(14.2)	$	(55.7)	$	(23.5)	$	(27.0)	$	(20.4)	$	(45.5)	$	(97.8)	$	(92.9)

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

	Three Months Ended														Nine Months Ended
(Unaudited)	Sep 30, 2023		Jun 30, 2023		Mar 31, 2023		Dec 31, 2022		Sep 30, 2022		Jun 30, 2022		Mar 31, 2022		Sep 30, 2023		Sep 30, 2022
Net Loss Per Unrestricted Share attributable to Kemper Corporation	$	(2.28)	$	(1.52)	$	(1.25)	$	(0.84)	$	(1.17)	$	(1.13)	$	(1.36)	$	(5.05)	$	(3.66)
Less Net Income (Loss) Per Unrestricted Share From:
Income (Loss) from Change in Fair Value of Equity and Convertible Securities	0.04		0.03		0.02		—		(0.14)		(0.50)		(0.35)		0.09		(0.99)
Net Realized Investment (Losses) Gains	(0.35)		(0.20)		0.08		0.05		(0.15)		0.13		0.02		(0.47)		—
Impairment (Losses) Gains	(0.01)		(0.02)		0.03		(0.05)		(0.10)		(0.06)		(0.11)		—		(0.27)
Acquisition and Disposition Related Transaction, Integration, Restructuring and Other Costs	(0.54)		(0.36)		(0.36)		(0.46)		(0.32)		(0.12)		(0.06)		(1.26)		(0.50)
Debt Extinguishment, Pension Settlement and Other Charges	(0.87)		—		—		—		—		—		(0.05)		(0.87)		(0.05)
Goodwill Impairment Charge	—		(0.71)		—		—		—		—		—		(0.71)		—
Non-Core Operations	(0.11)		(0.04)		(0.15)		(0.02)		(0.03)		(0.26)		(0.10)		(0.30)		(0.39)
Adjusted Consolidated Net Operating Loss Per Unrestricted Share	$	(0.44)	$	(0.22)	$	(0.87)	$	(0.36)	$	(0.43)	$	(0.32)	$	(0.71)	$	(1.53)	$	(1.46)

33

Kemper Corporation

Definitions of Non-GAAP Financial Measures (continued)

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.

34