8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): July 30, 2018

Kemper Corporation

(Exact name of registrant as specified in its charter)

Commission File Number: 001-18298

DE	95-4255452
(State or other jurisdiction of incorporation)	(IRS Employer Identification No.)

One East Wacker Drive, Chicago, IL 60601

(Address of principal executive offices, including zip code)

312-661-4600

(Registrant’s telephone number, including area code)

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the Registrant under any of the following provisions (see General Instruction A.2.below):

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging Growth Company ¨

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition

period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of

the Exchange Act.    ¨

Section 2. – Financial Information

Item 2.02. Results of Operations and Financial Condition.

On July 30, 2018, Kemper Corporation ("Kemper" or the "Registrant") issued a press release announcing its financial results for the second quarter of 2018 and the availability of Kemper’s second quarter investor supplement and earnings call presentation on its website, kemper.com. The press release, the investor supplement and the earnings call presentation are furnished as Exhibits 99.1, 99.2 and 99.3, respectively, to this report.

Section 7. – Regulation FD.

Item 7.01. Regulation FD Disclosure.

On July 30, 2018, the Registrant made available on its website, kemper.com, certain historical financial results of Infinity Property and Casualty Corporation ("Infinity") for the second quarter of 2018 (the "Infinity Supplementary Financial Information"). Kemper completed its acquisition of Infinity on July 2, 2018 and accordingly the historical financial results of Infinity are not included in Kemper's financial results for the second quarter of 2018. The Infinity Supplementary Financial Information is furnished as Exhibit 99.4 to this report.

Section 9. – Financial Statements and Exhibits.

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits

99.1    Registrant’s press release dated July 30, 2018.

99.2    Second Quarter 2018 Investor Supplement of Kemper Corporation.

99.3    Second Quarter 2018 Earnings Call Presentation

99.4    Infinity Property and Casualty Corporation Supplementary Financial Information - June 30, 2018

Exhibit Index

99.1	Registrant’s press release dated June 30, 2018.
99.2	Second Quarter 2018 Investor Supplement of Kemper Corporation.
99.3	Second Quarter 2018 Earnings Call Presentation.
99.4	Infinity Property and Casualty Corporation Supplementary Financial Information - June 30, 2018.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

		Kemper Corporation
Date:	July 30, 2018	/S/    JAMES J. MCKINNEY
		James J. McKinney
		Senior Vice President and Chief Financial Officer (principal financial officer)

EX-99.1

Exhibit 99.1

	Kemper Corporation One East Wacker Drive Chicago, IL 60601 kemper.com
Press Release

Kemper Reports Strong Second Quarter 2018 Results

◦ Property & Casualty earned premiums increased by 17 percent, or $72 million in the quarter

◦ Nonstandard personal automobile’s underlying combined ratio improved 2.0 percentage points in the quarter

◦ Investment portfolio generated a pre-tax equivalent annualized book yield of 5.0 percent in the quarter

CHICAGO, July 30, 2018 — Kemper Corporation (NYSE: KMPR) reported net income of $37.6 million, or $0.73 per diluted share, for the second quarter of 2018, compared to $36.6 million, or $0.71 per diluted share, for the second quarter of 2017. Adjusted consolidated net operating income¹ was $36.5 million, or $0.70 per diluted share, for the second quarter of 2018, compared to $21 million, or $0.41 per diluted share, for the second quarter of 2017. These results increased primarily from significant growth and improved underlying performance in personal automobile insurance division.

“Our strong second quarter results indicate sustained, positive momentum on the execution of our strategy,” said Joseph P. Lacher, Jr., Kemper’s President and Chief Executive Officer. “We’ve achieved steady, quarter-over-quarter growth that demonstrates the value of Kemper’s strategy of building strength in core businesses which focus on growing niche and undeserved markets. Our recent acquisition of Infinity is an important milestone in accelerating our position in one of these businesses - to become the premiere specialty auto franchise.”

	Three Months Ended						Six Months Ended
(Dollars in Millions, Except Per Share Amounts) (Unaudited)	Jun 30, 2018			Jun 30, 2017			Jun 30, 2018			Jun 30, 2017
Adjusted Consolidated Net Operating Income1	$	36.5		$	21.0		$	94.0		$	17.1
Income from Continuing Operations	37.5			36.6			91.1			36.2
Net Income	37.6			36.6			91.4			36.3
Impact of Catastrophe Losses and Related Loss Adjustment Expense (LAE) on Net Income	$	(34.3	)	$	(23.0	)	$	(40.4	)	$	(65.7	)
Diluted Net Income Per Share From:
Adjusted Consolidated Net Operating Income1	$	0.70		$	0.41		$	1.80		$	0.34
Income from Continuing Operations	0.73			0.71			1.75			0.70
Net Income	0.73			0.71			1.76			0.70
Impact of Catastrophe Losses and Related LAE on Net Income Per Share	$	(0.66	)	$	(0.44	)	$	(0.78	)	$	(1.27	)

¹ Adjusted consolidated net operating income is an after-tax, non-GAAP financial measure. See “Use of Non-GAAP Financial Measures” for additional information.

Capital

Total Shareholders’ Equity at the end of the quarter was $2,045.7 million, a decrease of $69.9 million, or 3 percent, since year-end 2017 driven by the impact of higher market yields on the value of our fixed maturity portfolio, partially offset by net income. Kemper ended the quarter with cash and investments at the holding company of $708.6 million, and the $300 million revolving credit agreement was undrawn.

During the second quarter of 2018, Kemper paid dividends of $12.4 million.

Kemper ended the quarter with a book value per share of $39.68, down 3 percent from $41.11 at the end of 2017. Book value per share excluding net unrealized gains on fixed maturities was $36.85, up 4 percent from $35.57 at the end of 2017, driven by net income, partially offset by dividends paid to shareholders.

Revenues

Total revenues for the second quarter of 2018increased$57.5 million, or 8 percent, to $741.9 million, compared to the second quarter of 2017, driven by $73.9 million higher nonstandard personal auto earned premiums. Nonstandard personal auto earned premiums increased primarily from higher policies in force. Net investment income increased $1.3 million to $78.4 million in the second quarter of 2018, a $2.3 million increase in interest on fixed income securities was primarily offset by a $2.2 million reduction in net investment income on the alternative investments portfolio. Net realized investment gains were $3.8 million in the second quarter of 2018, compared to $26.4 million last year.

The investment portfolio in total generated a pre-tax equivalent annualized book yield of 5.0 percent for the second quarter of 2018, compared to 5.2 percent in 2017.

Segment Results

Unless otherwise noted, (i) the segment results discussed below are presented on an after-tax basis, (ii) prior-year development includes both catastrophe and non-catastrophe losses and LAE, (iii) catastrophe losses and LAE exclude the impact of prior-year development, (iv) underlying loss ratio includes loss and LAE, and (v) all comparisons are made to the prior year quarter unless otherwise stated.

	Three Months Ended						Six Months Ended
(Dollars in Millions) (Unaudited)	Jun 30, 2018			Jun 30, 2017			Jun 30, 2018			Jun 30, 2017
Segment Net Operating Income (Loss):
Property & Casualty Insurance	$	15.2		$	4.9		$	51.2		$	(17.2	)
Life & Health Insurance	26.4			20.5			50.2			42.0
Total Segment Net Operating Income	41.6			25.4			101.4			24.8
Corporate and Other Net Operating Income (Loss)	(5.1		)	(4.4		)	(7.4		)	(7.7		)
Adjusted Consolidated Net Operating Income	36.5			21.0			94.0			17.1
Net Income (Loss) From:
Change in Fair Value of Equity Securities	0.3			—			0.9			—
Net Realized Gains on Sales of Investments	3.0			17.2			5.1			24.0
Net Impairment Losses Recognized in Earnings	—			(1.6		)	(0.4		)	(4.9		)
Acquisition Related Transaction and Integration Costs	(2.3		)	—			(8.5		)	—
Income from Continuing Operations	$	37.5		$	36.6		$	91.1		$	36.2

2

The Property & Casualty Insurance segment reported net operating income of $15.2 million in the second quarter of 2018, compared to $4.9 million in 2017. Results increased primarily from strong nonstandard personal auto growth and profitability and a reduction in loss and LAE as a percentage of earned premium in preferred personal auto, partially offset by higher catastrophe losses. Catastrophe losses were $42.4 million before taxes in the second quarter of 2018, compared to $34.5 million last year.

The Property & Casualty Insurance segment’s underlying combined ratio improved 2.2 percentage points to 92.0 percent in the second quarter of 2018. The underlying loss ratio improved 1.2 percentage points to 70.9 percent, primarily from improvement in nonstandard personal auto, preferred personal auto and homeowners. Nonstandard auto’s underlying loss ratio improved 1.4 percentage points to 77.3 percent in the quarter, as average earned premium outpaced loss cost trends. Preferred personal auto’s underlying loss ratio improved 4.1 percentage points to 68.7 percent, driven by increased earned rate and moderating loss trends. The homeowners underlying loss ratio improved 2.3 percentage points to 46.4 percent due to a lower frequency of claims and increased earned rate partially offset by the cost related to our aggregate catastrophe program.

The Property & Casualty Insurance segment’s expense ratio improved 1.0 percentage points as an even larger percentage of earned premiums were generated by the nonstandard auto business, which grew at 32 percent and runs at a lower expense ratio. Additionally, the larger premium base also generated expense ratio improvement as premium growth outpaced fixed expenses.

The Life & Health Insurance segment reported net operating income of $26.4 million for the second quarter of 2018, compared to $20.5 million in 2017, primarily due to growth in supplemental A&H business. These gains were partially offset by higher policyholders’ benefits in both supplemental A&H and Life products. Both the supplemental A&H and Life businesses witnessed an increase in operating profit which was further enhanced by the impact of tax code changes.

3

Unaudited condensed consolidated statements of income for the three and six months endedJune 30, 2018 and 2017 are presented below.

	Three Months Ended						Six Months Ended
(Dollars in Millions, Except Per Share Amounts)	Jun 30, 2018			Jun 30, 2017			Jun 30, 2018			Jun 30, 2017
Revenues:
Earned Premiums	$	658.1		$	582.5		$	1,267.9		$	1,145.9
Net Investment Income	78.4			77.1			157.6			158.7
Other Income	1.2			1.0			2.4			1.9
Income from Change in Fair Value of Equity Securities	0.4			—			1.1			—
Net Realized Gains on Sales of Investments	3.8			26.4			6.4			36.9
Other-than-temporary Impairment Losses:
Total Other-than-temporary Impairment Losses	—			(2.6		)	(0.5		)	(7.8		)
Portion of Losses Recognized in Other Comprehensive Income	—			—			—			0.2
Net Impairment Losses Recognized in Earnings	—			(2.6		)	(0.5		)	(7.6		)
Total Revenues	741.9			684.4			1,434.9			1,335.8
Expenses:
Policyholders’ Benefits and Incurred Losses and Loss Adjustment Expenses	499.5			447.4			936.4			924.8
Insurance Expenses	171.2			163.5			331.3			321.5
Interest and Other Expenses	25.7			21.4			54.7			40.9
Total Expenses	696.4			632.3			1,322.4			1,287.2
Income from Continuing Operations before Income Taxes	45.5			52.1			112.5			48.6
Income Tax Expense	(8.0		)	(15.5		)	(21.4		)	(12.4		)
Income from Continuing Operations	37.5			36.6			91.1			36.2
Income from Discontinued Operations	0.1			—			0.3			0.1
Net Income	$	37.6		$	36.6		$	91.4		$	36.3
Income from Continuing Operations Per Unrestricted Share:
Basic	$	0.73		$	0.71		$	1.76		$	0.70
Diluted	$	0.73		$	0.71		$	1.75		$	0.70
Net Income Per Unrestricted Share:
Basic	$	0.73		$	0.71		$	1.77		$	0.71
Diluted	$	0.73		$	0.71		$	1.76		$	0.70
Weighted-average Outstanding (Shares in Thousands):
Unrestricted Shares - Basic	51,549.9			51,286.2			51,526.6			51,279.6
Unrestricted Shares and Equivalent Shares - Diluted	52,076.4			51,411.1			51,996.7			51,437.2
Dividends Paid to Shareholders Per Share	$	0.24		$	0.24		$	0.48		$	0.48

4

Unaudited business segment revenues for the three and six months endedJune 30, 2018 and 2017 are presented below.

	Three Months Ended					Six Months Ended
(Dollars in Millions)	Jun 30, 2018		Jun 30, 2017			Jun 30, 2018			Jun 30, 2017
REVENUES:
Property & Casualty Insurance:
Earned Premiums:
Personal Automobile	$	416.2	$	339.1		$	787.3		$	659.8
Homeowners	62.2		66.6			124.0			132.9
Other Personal	10.2		10.8			20.3			21.5
Total Personal	488.6		416.5			931.6			814.2
Commercial Automobile	12.5		12.7			24.7			25.4
Total Earned Premiums	501.1		429.2			956.3			839.6
Net Investment Income	22.9		20.6			45.4			44.7
Other Income	0.4		0.3			0.7			0.5
Total Property & Casualty Insurance	524.4		450.1			1,002.4			884.8
Life & Health Insurance:
Earned Premiums:
Life	95.4		95.4			189.1			191.1
Accident & Health	43.8		39.5			87.1			78.6
Property	17.8		18.4			35.4			36.6
Total Earned Premiums	157.0		153.3			311.6			306.3
Net Investment Income	54.1		54.9			107.4			107.9
Other Income	0.9		0.6			1.7			1.2
Total Life & Health Insurance	212.0		208.8			420.7			415.4
Total Segment Revenues	736.4		658.9			1,423.1			1,300.2
Income from Change in Fair Value of Equity Securities	0.4		—			1.1			—
Net Realized Gains on Sales of Investments	3.8		26.4			6.4			36.9
Net Impairment Losses Recognized in Earnings	—		(2.6		)	(0.5		)	(7.6		)
Other	1.3		1.7			4.8			6.3
Total Revenues	$	741.9	$	684.4		$	1,434.9		$	1,335.8

5

KEMPER CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (Dollars in Millions) (Unaudited)
	Jun 30, 2018		Dec 31, 2017
Assets:
Investments:
Fixed Maturities at Fair Value	$	5,260.3	$	5,382.7
Equity Securities at Fair Value	514.9		526.0
Equity Securities at Modified Cost	$	54.1	—
Equity Method Limited Liability Investments at Cost Plus Cumulative Undistributed Earnings	170.9		161.0
Fair Value Option Investments	—		77.5
Short-term Investments at Cost which Approximates Fair Value	169.0		235.5
Other Investments	411.7		422.2
Total Investments	6,580.9		6,804.9
Cash	649.9		45.7
Receivables from Policyholders	407.5		366.0
Other Receivables	189.2		194.3
Deferred Policy Acquisition Costs	388.9		365.3
Goodwill	323.0		323.0
Current Income Tax Assets	0.9		6.1
Deferred Income Tax Assets	10.6		—
Other Assets	289.6		270.9
Total Assets	$	8,840.5	$	8,376.2
Liabilities and Shareholders’ Equity:
Insurance Reserves:
Life & Health	$	3,543.5	$	3,521.0
Property & Casualty	1,059.7		1,016.8
Total Insurance Reserves	4,603.2		4,537.8
Unearned Premiums	723.8		653.9
Deferred Income Tax Liabilities	—		14.8
Liabilities for Unrecognized Tax Benefits	9.2		8.1
Debt at Amortized Cost	951.8		592.3
Accrued Expenses and Other Liabilities	506.8		453.7
Total Liabilities	6,794.8		6,260.6
Shareholders’ Equity:
Common Stock	5.2		5.1
Paid-in Capital	681.5		673.1
Retained Earnings	1,289.4		1,243.0
Accumulated Other Comprehensive Income	69.6		194.4
Total Shareholders’ Equity	2,045.7		2,115.6
Total Liabilities and Shareholders’ Equity	$	8,840.5	$	8,376.2

6

Unaudited selected financial information for the Property & Casualty Insurance segment follows.

	Three Months Ended						Six Months Ended
(Dollars in Millions)	Jun 30, 2018			Jun 30, 2017			Jun 30, 2018			Jun 30, 2017
Results of Operations
Net Premiums Written	$	536.9		$	440.7		$	1,025.8		$	869.6
Earned Premiums	$	501.1		$	429.2		$	956.3		$	839.6
Net Investment Income	22.9			20.6			45.4			44.7
Other Income	0.4			0.3			0.7			0.5
Total Revenues	524.4			450.1			1,002.4			884.8
Incurred Losses and LAE related to:
Current Year:
Non-catastrophe Losses and LAE	355.0			308.8			681.5			611.4
Catastrophe Losses and LAE	42.4			34.5			49.9			98.4
Prior Years:
Non-catastrophe Losses and LAE	4.7			9.6			8.4			21.4
Catastrophe Losses and LAE	(1.8		)	(2.0		)	(7.5		)	(3.2		)
Total Incurred Losses and LAE	400.3			350.9			732.3			728.0
Insurance Expenses	105.9			95.0			207.4			189.8
Operating Income (Loss)	18.2			4.2			62.7			(33.0		)
Income Tax Benefit (Expense)	(3.0		)	0.7			(11.5		)	15.8
Segment Net Operating Income (Loss)	$	15.2		$	4.9		$	51.2		$	(17.2	)
Ratios Based On Earned Premiums
Current Year Non-catastrophe Losses and LAE Ratio	70.9		%	72.1		%	71.3		%	72.9		%
Current Year Catastrophe Losses and LAE Ratio	8.5			8.0			5.2			11.7
Prior Years Non-catastrophe Losses and LAE Ratio	0.9			2.2			0.9			2.5
Prior Years Catastrophe Losses and LAE Ratio	(0.4		)	(0.5		)	(0.8		)	(0.4		)
Total Incurred Loss and LAE Ratio	79.9			81.8			76.6			86.7
Insurance Expense Ratio	21.1			22.1			21.7			22.6
Combined Ratio	101.0		%	103.9		%	98.3		%	109.3		%
Underlying Combined Ratio
Current Year Non-catastrophe Losses and LAE Ratio	70.9		%	72.1		%	71.3		%	72.9		%
Insurance Expense Ratio	21.1			22.1			21.7			22.6
Underlying Combined Ratio	92.0		%	94.2		%	93.0		%	95.5		%
Non-GAAP Measure Reconciliation
Underlying Combined Ratio	92.0		%	94.2		%	93.0		%	95.5		%
Current Year Catastrophe Losses and LAE Ratio	8.5			8.0			5.2			11.7
Prior Years Non-catastrophe Losses and LAE Ratio	0.9			2.2			0.9			2.5
Prior Years Catastrophe Losses and LAE Ratio	(0.4		)	(0.5		)	(0.8		)	(0.4		)
Combined Ratio as Reported	101.0		%	103.9		%	98.3		%	109.3		%

7

Unaudited selected financial information for the Life & Health Insurance segment follows.

	Three Months Ended						Six Months Ended
(Dollars in Millions)	Jun 30, 2018			Jun 30, 2017			Jun 30, 2018			Jun 30, 2017
Results of Operations
Earned Premiums	$	157.0		$	153.3		$	311.6		$	306.3
Net Investment Income	54.1			54.9			107.4			107.9
Other Income	0.9			0.6			1.7			1.2
Total Revenues	212.0			208.8			420.7			415.4
Policyholders’ Benefits and Incurred Losses and LAE	99.2			96.5			204.1			196.8
Insurance Expenses	79.4			81.1			153.3			154.8
Operating Profit	33.4			31.2			63.3			63.8
Income Tax Expense	(7.0		)	(10.7		)	(13.1		)	(21.8		)
Segment Net Operating Income	$	26.4		$	20.5		$	50.2		$	42.0

Use of Non-GAAP Financial Measures

Adjusted Consolidated Net Operating Income

Adjusted Consolidated Net Operating Income is an after-tax, non-GAAP financial measure computed by excluding from Income from Continuing Operations the after-tax impact of 1) income (loss) from change in fair value of equity securities, 2) net realized gains on sales of investments, 3) net impairment losses recognized in earnings related to investments, 4) acquisition related transaction and integration costs, 5) loss from early extinguishment of debt and 6) significant non-recurring or infrequent items that may not be indicative of ongoing operations. Significant non-recurring items are excluded when (a) the nature of the charge or gain is such that it is reasonably unlikely to recur within two years and (b) there has been no similar charge or gain within the prior two years. The most directly comparable GAAP financial measure is Income from Continuing Operations.

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

8

A reconciliation of Adjusted Consolidated Net Operating Income to Income from Continuing Operations for the three and six months endedJune 30, 2018 and 2017 is presented below.

	Three Months Ended						Six Months Ended
(Dollars in Millions) (Unaudited)	Jun 30, 2018			Jun 30, 2017			Jun 30, 2018			Jun 30, 2017
Adjusted Consolidated Net Operating Income	$	36.5		$	21.0		$	94.0		$	17.1
Net Income (Loss) From:
Income from Change in Fair Value of Equity Securities	0.3			—			0.9			—
Net Realized Gains on Sales of Investments	3.0			17.2			5.1			24.0
Net Impairment Losses Recognized in Earnings	—			(1.6		)	(0.4		)	(4.9		)
Acquisition Related Transaction and Integration Costs	(2.3		)	—			(8.5		)	—
Income from Continuing Operations	$	37.5		$	36.6		$	91.1		$	36.2

Diluted Adjusted Consolidated Net Operating Income Per Unrestricted Share

Diluted Adjusted Consolidated Net Operating Income Per Unrestricted Share is a non-GAAP financial measure computed by dividing Adjusted Consolidated Net Operating Income attributed to unrestricted shares by the weighted-average unrestricted shares and equivalent shares outstanding. The most directly comparable GAAP financial measure is Diluted Income from Continuing Operations Per Unrestricted Share.

A reconciliation of Diluted Adjusted Consolidated Net Operating Income Per Unrestricted Share to Diluted Income from Continuing Operations Per Unrestricted Share for the three and six months endedJune 30, 2018 and 2017 is presented below.

	Three Months Ended						Six Months Ended
(Unaudited)	Jun 30, 2018			Jun 30, 2017			Jun 30, 2018			Jun 30, 2017
Diluted Adjusted Consolidated Net Operating Income Per Unrestricted Share	$	0.70		$	0.41		$	1.80		$	0.34
Net Income (Loss) Per Unrestricted Share From:
Income from Change in Fair Value of Equity Securities	0.01			—			0.02			—
Net Realized Gains on Sales of Investments	0.06			0.33			0.10			0.46
Net Impairment Losses Recognized in Earnings	—			(0.03		)	(0.01		)	(0.10		)
Acquisition Related Transaction and Integration Costs	(0.04		)	—			(0.16		)	—
Diluted Income from Continuing Operations Per Unrestricted Share	$	0.73		$	0.71		$	1.75		$	0.70

Book Value Per Share Excluding Net Unrealized Gains on Fixed Maturities

Book Value Per Share Excluding Net Unrealized Gains on Fixed Maturities is a ratio that uses a non-GAAP financial measure. It is calculated by dividing shareholders’ equity after excluding the after-tax impact of net unrealized gains on fixed income securities by total Common Shares Issued and Outstanding. Book Value Per Share is the most directly comparable GAAP financial measure. Kemper uses the trends in book value per share, excluding the after-tax impact of net unrealized gains on fixed income securities, in conjunction with book value per share to identify and analyze the change in net worth attributable to management efforts between periods. Kemper 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. Kemper believes it enhances understanding and comparability of performance by highlighting underlying business activity and profitability drivers.

9

A reconciliation of the numerator used in the computation of Book Value Per Share Excluding Net Unrealized Gains on Fixed Maturities and Book Value Per Share at June 30, 2018 and December 31, 2017 is presented below.

(Dollars in Millions) (Unaudited)	Jun 30, 2018		Dec 31, 2017
Shareholders’ Equity Excluding Net Unrealized Gains on Fixed Maturities	$	1,900.1	$	1,830.4
Net Unrealized Gains on Fixed Maturities	145.6		285.2
Shareholders’ Equity	$	2,045.7	$	2,115.6

Underlying Combined Ratio

Underlying Combined Ratio is a non-GAAP financial measure that 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, including the impact of catastrophe losses and loss and LAE reserve development from prior years, with the insurance expense ratio. Kemper believes the underlying combined ratio is useful to investors and is used by management to reveal the trends in Kemper’s property and casualty insurance businesses that may be obscured by catastrophe losses and prior-year reserve development. These catastrophe losses may cause loss trends to vary significantly between periods as a result of their incidence of occurrence and magnitude, and can have a significant impact on incurred losses and LAE and the combined ratio. Prior-year reserve development is 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. Kemper believes it is useful for investors to evaluate these components separately and in the aggregate when reviewing its underwriting performance. The underlying combined ratio should not be considered a substitute for the combined ratio and does not reflect the overall underwriting profitability of our business.

Conference Call

Kemper will discuss its second quarter 2018 results in a conference call on Monday, July 30, at 4:15 p.m. Eastern (3:15 p.m. Central) Time. Kemper’s conference call will be accessible via the internet and by telephone. The phone number for Kemper’s conference call is 844.826.3041. To listen via webcast, register online at the investor section of kemper.com at least 15 minutes prior to the webcast to download and install any necessary software.

A replay of the call will be available online at the investor section of kemper.com.

More detailed financial information can be found in Kemper’s Investor Financial Supplement and Earnings Call Presentation for the second quarter of 2018, which is available at the investor section of kemper.com.

About Kemper

The Kemper family of companies is one of the nation’s leading insurers. With $11 billion in assets, Kemper is improving the world of insurance by offering personalized solutions for individuals, families and businesses. Through our businesses, Kemper: 

• Offer insurance for auto, home, life, health and valuables

• Service approximately seven million policies 

• Is represented by more than 30,000 agents and brokers

• Employs over 7,800 associates dedicated to providing exceptional service 

• Is licensed to sell insurance in 50 states and the District of Columbia

Learn more about Kemper.

Cautionary Statements Regarding Forward-Looking Information

This press release 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

10

of 1995. Forward-looking statements give expectations or forecasts of future events, and can be identified by the fact that they relate to future actions, performance or results rather than strictly to historical or current facts.

Any or all forward-looking statements may turn out to be wrong, and, accordingly, readers are cautioned not to place undue reliance on such statements, which speak only as of the date of this press release. Forward-looking statements involve a number of risks and uncertainties that are difficult to predict, and are not guarantees of future performance. Among the general factors that could cause actual results and financial condition to differ materially from estimated results and financial condition are those listed in periodic reports filed by Kemper with the Securities and Exchange Commission (the “SEC”). No assurances can be given that the results and financial condition contemplated in any forward-looking statements will be achieved or will be achieved in any particular timetable. 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 press release. The reader is advised, however, to consult any further disclosures Kemper makes on related subjects in its filings with the SEC.

###

Contacts
Investors: Michael Marinaccio	312.661.4930 or investors@kemper.com
Media: Barbara Ciesemier	312.661.4521 or media@kemper.com

11

EX-99.2

Exhibit 99.2

Investor Supplement

Second Quarter 2018

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

Non-GAAP Financial Measures

This document contains non-GAAP financial measures to analyze the Company’s operating performance for the periods presented. Because the Company’s calculation of these measures may differ from similar measures used by other companies, investors should be careful when comparing the Company’s non-GAAP financial measures to those of other companies. For detailed disclosures on non-GAAP financial measures please refer to the “Definitions of Non-GAAP Financial Measures” on Page 33.

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. Forward-looking statements give expectations or forecasts of future events, and can be identified by the fact that they relate to future actions, performance or results rather than strictly to historical or current facts.

Any or all forward-looking statements may turn out to be wrong, and, accordingly, readers are cautioned not to place undue reliance on such statements, which speak only as of the date of this press release. Forward-looking statements involve a number of risks and uncertainties that are difficult to predict, and are not guarantees of future performance. Among the general factors that could cause actual results and financial condition to differ materially from estimated results and financial condition are those listed in periodic reports filed by Kemper with the Securities and Exchange Commission (the “SEC”). No assurances can be given that the results and financial condition contemplated in any forward-looking statements will be achieved or will be achieved in any particular timetable. 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 2018 Investor Supplement. The reader is advised, however, to consult any further disclosures Kemper makes on related subjects in its filings with the SEC.

Kemper Corporation

Investor Supplement

Second Quarter 2018

Table of Contents

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

Page 2

Kemper Corporation Consolidated Financial Highlights (Dollars in Millions, Except Per Share Amounts) (Unaudited)
	Three Months Ended																		Six Months Ended
	Jun 30, 2018			Mar 31, 2018			Dec 31, 2017			Sep 30, 2017			Jun 30, 2017			Mar 31, 2017			Jun 30, 2018		Jun 30, 2017
For Period Ended
Earned Premiums	$	658.1		$	609.8		$	605.9		$	598.2		$	582.5		$	563.4		$	1,267.9	$	1,145.9
Net Investment Income	78.4			79.2			82.6			85.9			77.1			81.6			157.6		158.7
Other Income	1.2			1.2			1.1			1.0			1.0			0.9			2.4		1.9
Income from Change in Fair Value of Equity Securities	0.4			0.7			—			—			—			—			1.1		—
Net Investment Gains (Losses)	3.8			2.1			7.7			5.2			23.8			5.5			5.9		29.3
Total Revenues	$	741.9		$	693.0		$	697.3		$	690.3		$	684.4		$	651.4		$	1,434.9	$	1,335.8
Adjusted Consolidated Net Operating Income (Loss) 1	$	36.5		$	57.5		$	31.0		$	44.4		$	21.0		$	(3.9	)	$	94.0	$	17.1
Income (Loss) from Continuing Operations	$	37.5		$	53.6		$	35.9		$	47.8		$	36.6		$	(0.4	)	$	91.1	$	36.2
Net Income (Loss)	$	37.6		$	53.8		$	36.9		$	47.7		$	36.6		$	(0.3	)	$	91.4	$	36.3
Per Unrestricted Common Share Amounts:
Basic:
Adjusted Consolidated Net Operating Income (Loss) 1	$	0.70		$	1.11		$	0.60		$	0.85		$	0.41		$	(0.08	)	$	1.81	$	0.34
Income (Loss) from Continuing Operations	$	0.73		$	1.03		$	0.69		$	0.92		$	0.71		$	(0.01	)	$	1.76	$	0.70
Net Income (Loss)	$	0.73		$	1.03		$	0.71		$	0.92		$	0.71		$	(0.01	)	$	1.77	$	0.71
Diluted:
Adjusted Consolidated Net Operating Income (Loss) 1	$	0.70		$	1.10		$	0.60		$	0.85		$	0.41		$	(0.08	)	$	1.80	$	0.34
Income (Loss) from Continuing Operations	$	0.73		$	1.02		$	0.69		$	0.92		$	0.71		$	(0.01	)	$	1.75	$	0.70
Net Income (Loss)	$	0.73		$	1.02		$	0.71		$	0.92		$	0.71		$	(0.01	)	$	1.76	$	0.70
Dividends Paid to Shareholders Per Share	$	0.24		$	0.24		$	0.24		$	0.24		$	0.24		$	0.24		$	0.48	$	0.48
At Period End
Total Assets	$	8,840.5		$	8,371.0		$	8,376.2		$	8,301.0		$	8,211.4		$	8,306.8
Insurance Reserves	$	4,603.2		$	4,539.4		$	4,537.8		$	4,478.3		$	4,466.7		$	4,473.4
Debt	$	951.8		$	592.3		$	592.3		$	592.2		$	592.1		$	751.8
Shareholders’ Equity	$	2,045.7		$	2,063.8		$	2,115.6		$	2,082.4		$	2,033.4		$	1,983.6
Shareholders’ Equity Excluding Goodwill	$	1,722.7		$	1,740.8		$	1,792.6		$	1,759.4		$	1,710.4		$	1,660.6
Common Shares Issued and Outstanding (In Millions)	51.559			51.533			51.462			51.448			51.294			51.295
Book Value Per Share2	$	39.68		$	40.05		$	41.11		$	40.48		$	39.64		$	38.67
Book Value Per Share Excluding Goodwill1,2	$	33.41		$	33.78		$	34.83		$	34.20		$	33.35		$	32.37
Book Value Per Share Excluding Net Unrealized Gains on Fixed Maturities1,2	$	36.85		$	36.35		$	35.57		$	35.87		$	35.13		$	34.81
Debt to Total Capitalization2	31.8		%	22.3		%	21.9		%	22.1		%	22.6		%	27.5		%
Rolling 12 Months Return on 5-point Average Shareholders Equity2,3	8.5		%	8.5		%	5.9		%	5.7		%	2.5		%	0.9		%
1 Non-GAAP Measure. See page 33 for definition.
2 See Capital Metrics on page 8 for detail calculations.
3 Rolling 12 Months Return on 5-point Average Shareholders Equity is calculated by taking the last 12 months of Net Income (Loss) divided by the 5-point average Shareholders’ Equity. The 5-point Average Shareholders’ Equity is calculated by using a 5-point quarter average of Shareholders’ Equity for the 12 month period.

Page 3

Kemper Corporation Consolidated Statements of Operations (Dollars in Millions, Except Per Share Amounts)  (Unaudited)
	Three Months Ended																		Six Months Ended
	Jun 30, 2018			Mar 31, 2018			Dec 31, 2017			Sep 30, 2017			Jun 30, 2017			Mar 31, 2017			Jun 30, 2018			Jun 30, 2017
Revenues:
Earned Premiums	$	658.1		$	609.8		$	605.9		$	598.2		$	582.5		$	563.4		$	1,267.9		$	1,145.9
Net Investment Income	78.4			79.2			82.6			85.9			77.1			81.6			157.6			158.7
Other Income	1.2			1.2			1.1			1.0			1.0			0.9			2.4			1.9
Income from Change in Fair Value of Equity Securities	0.4			0.7			—			—			—			—			1.1			—
Net Realized Gains on Sales of Investments	3.8			2.6			11.5			8.1			26.4			10.5			6.4			36.9
Other-than-temporary Impairment Losses:
Total Other-than-temporary Impairment Losses	—			(0.5		)	(3.7		)	(2.9		)	(2.6		)	(5.2		)	(0.5		)	(7.8		)
Portion of Losses Recognized in Other Comprehensive Income	—			—			(0.1		)	—			—			0.2			—			0.2
Net Impairment Losses Recognized in Earnings	—			(0.5		)	(3.8		)	(2.9		)	(2.6		)	(5.0		)	(0.5		)	(7.6		)
Total Revenues	741.9			693.0			697.3			690.3			684.4			651.4			1,434.9			1,335.8
Expenses:
Policyholders’ Benefits and Incurred Losses and Loss Adjustment Expenses	499.5			436.9			472.5			440.1			447.4			477.4			936.4			924.8
Insurance Expenses	171.2			160.1			159.1			163.7			163.5			158.0			331.3			321.5
Interest and Other Expenses	25.7			29.0			21.5			18.2			21.4			19.5			54.7			40.9
Total Expenses	696.4			626.0			653.1			622.0			632.3			654.9			1,322.4			1,287.2
Income (Loss) from Continuing Operations before Income Taxes	45.5			67.0			44.2			68.3			52.1			(3.5		)	112.5			48.6
Income Tax Benefit (Expense)	(8.0		)	(13.4		)	(8.3		)	(20.5		)	(15.5		)	3.1			(21.4		)	(12.4		)
Income (Loss) from Continuing Operations	37.5			53.6			35.9			47.8			36.6			(0.4		)	91.1			36.2
Discontinued Operations:
Income (Loss) from Discontinued Operations before Income Taxes	0.1			0.3			1.5			(0.1		)	—			0.1			0.4			0.1
Income Tax Expense	—			(0.1		)	(0.5		)	—			—			—			(0.1		)	—
Income (Loss) from Discontinued Operations	0.1			0.2			1.0			(0.1		)	—			0.1			0.3			0.1
Net Income (Loss)	$	37.6		$	53.8		$	36.9		$	47.7		$	36.6		$	(0.3	)	$	91.4		$	36.3
Income (Loss) from Continuing Operations Per Unrestricted Share:
Basic	$	0.73		$	1.03		$	0.69		$	0.92		$	0.71		$	(0.01	)	$	1.76		$	0.70
Diluted	$	0.73		$	1.02		$	0.69		$	0.92		$	0.71		$	(0.01	)	$	1.75		$	0.70
Net Income (Loss) Per Unrestricted Share:
Basic	$	0.73		$	1.03		$	0.71		$	0.92		$	0.71		$	(0.01	)	$	1.77		$	0.71
Diluted	$	0.73		$	1.02		$	0.71		$	0.92		$	0.71		$	(0.01	)	$	1.76		$	0.70
Dividends Paid to Shareholders Per Share	$	0.24		$	0.24		$	0.24		$	0.24		$	0.24		$	0.24		$	0.48		$	0.48
Weighted Average Unrestricted Common Shares Outstanding (in Millions)	51.550			51.503			51.456			51.367			51.286			51.273			51.527			51.280

Page 4

Kemper Corporation Consolidated Balance Sheets (Dollars in Millions)  (Unaudited)
	Jun 30, 2018		Mar 31, 2018		Dec 31, 2017		Sep 30, 2017		Jun 30, 2017		Mar 31, 2017
Assets:
Investments:
Fixed Maturities at Fair Value	$	5,260.3	$	5,301.2	$	5,382.7	$	5,242.8	$	5,263.9	$	5,240.3
Equity Securities at Fair Value	514.9		568.2		526.0		512.1		500.0		497.4
Equity Securities at Modified Cost	54.1		59.3		—		—		—		—
Equity Method Limited Liability Investments at Cost Plus Cumulative Undistributed Earnings	170.9		168.8		161.0		160.1		152.8		157.4
Fair Value Option Investments	—		—		77.5		77.1		77.0		90.5
Short-term Investments at Cost which Approximates Fair Value	169.0		188.8		235.5		239.0		129.9		244.6
Other Investments	411.7		413.0		422.2		420.0		430.0		437.7
Total Investments	6,580.9		6,699.3		6,804.9		6,651.1		6,553.6		6,667.9
Cash	649.9		115.4		45.7		137.6		160.9		120.0
Receivables from Policyholders	407.5		386.0		366.0		374.8		353.7		347.9
Other Receivables	189.2		187.9		194.3		182.4		190.1		206.1
Deferred Policy Acquisition Costs	388.9		378.0		365.3		361.7		348.5		339.9
Goodwill	323.0		323.0		323.0		323.0		323.0		323.0
Current Income Tax Assets	0.9		—		6.1		0.9		7.4		10.1
Deferred Income Tax Assets	10.6		—		—		—		5.4		26.4
Other Assets	289.6		281.4		270.9		269.5		268.8		265.5
Total Assets	$	8,840.5	$	8,371.0	$	8,376.2	$	8,301.0	$	8,211.4	$	8,306.8
Liabilities and Shareholders’ Equity:
Insurance Reserves:
Life and Health	$	3,543.5	$	3,534.3	$	3,521.0	$	3,509.8	$	3,499.7	$	3,489.0
Property and Casualty	1,059.7		1,005.1		1,016.8		968.5		967.0		984.4
Total Insurance Reserves	4,603.2		4,539.4		4,537.8		4,478.3		4,466.7		4,473.4
Unearned Premiums	723.8		690.2		653.9		672.0		650.5		640.1
Current Income Tax Liabilities	—		0.2		—		—		—		—
Deferred Income Tax Liabilities	—		1.1		14.8		11.9		—		—
Liability for Unrecognized Tax Benefits	9.2		8.1		8.1		6.8		7.0		6.9
Long-term Debt, Current and Non-current, at Amortized Cost	951.8		592.3		592.3		592.2		592.1		751.8
Accrued Expenses and Other Liabilities	506.8		475.9		453.7		457.4		461.7		451.0
Total Liabilities	6,794.8		6,307.2		6,260.6		6,218.6		6,178.0		6,323.2
Shareholders’ Equity:
Common Stock	5.2		5.1		5.1		5.1		5.1		5.1
Paid-in Capital	681.5		676.9		673.1		672.1		666.9		663.7
Retained Earnings	1,289.4		1,264.9		1,243.0		1,218.8		1,184.8		1,160.7
Accumulated Other Comprehensive Income	69.6		116.9		194.4		186.4		176.6		154.1
Total Shareholders’ Equity	2,045.7		2,063.8		2,115.6		2,082.4		2,033.4		1,983.6
Total Liabilities and Shareholders’ Equity	$	8,840.5	$	8,371.0	$	8,376.2	$	8,301.0	$	8,211.4	$	8,306.8

Page 5

Kemper Corporation Consolidated Statements of Cash Flows (Dollars in Millions)  (Unaudited)
	Six Months Ended
	Jun 30, 2018			Jun 30, 2017
Operating Activities:
Net Income	$	91.4		$	36.3
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities:
Amortization of Intangible Assets Acquired	1.8			2.6
Equity in Earnings of Equity Method Limited Liability Investments	(8.5		)	(10.8		)
Distribution of Accumulated Earnings of Equity Method Limited Liability Investments	5.0			11.1
Decrease (Increase) in Value of Fair Value Option Investments Reported in Net Investment Income	—			(0.5		)
Decrease (Increase) in Value of Equity Securities at Fair Value	(1.1		)	—
Amortization of Investment Securities and Depreciation of Investment Real Estate	2.9			8.7
Net Realized Gains on Sales of Investments	(6.4		)	(36.9		)
Net Impairment Losses Recognized in Earnings	0.5			7.6
Depreciation of Property and Equipment	8.2			6.2
Increase in Receivables	(38.7		)	(9.2		)
Increase in Deferred Policy Acquisition Costs	(23.5		)	(16.5		)
Increase in Insurance Reserves	65.8			59.8
Increase in Unearned Premiums	69.9			31.8
Change in Income Taxes	18.8			9.4
Change in Accrued Expenses and Other Liabilities	0.3			6.5
Other, Net	5.0			(2.1		)
Net Cash Provided by Operating Activities (Carryforward to page 7)	191.4			104.0

Page 6

Kemper Corporation Consolidated Statements of Cash Flows (Dollars in Millions)  (Unaudited)
	Six Months Ended
	Jun 30, 2018			Jun 30, 2017
Net Cash Provided by Operating Activities (Carryforward from page 6)	191.4			104.0
Investing Activities:
Sales, Paydowns and Maturities of Fixed Maturities	607.5			205.4
Purchases of Fixed Maturities	(633.7		)	(264.4		)
Sales of Equity Securities	122.9			191.1
Purchases of Equity Securities	(61.9		)	(197.4		)
Return of Investment of Equity Method Limited Liability Investments	6.2			32.2
Acquisitions of Equity Method Limited Liability Investments	(12.6		)	(9.3		)
Sales of Fair Value Option Investments	—			34.9
Decrease (Increase) in Short-term Investments	67.6			144.2
Improvements of Investment Real Estate	(0.4		)	(1.0		)
Sales of Investment Real Estate	—			14.7
Increase in Other Investments	2.1			(0.9		)
Acquisition of Software	(32.8		)	(21.3		)
Other, Net	3.3			(3.6		)
Net Cash Provided (Used) by Investing Activities	68.2			124.6
Financing Activities:
Net Proceeds from Issuances of Long-term Debt	249.4			200.2
Repayments of Long-term Debt	—			(360.0		)
Dividends and Dividend Equivalents Paid	(24.9		)	(24.7		)
Proceeds from Advances from FHLB	120.0			—
Cash Exercise of Stock Options	0.6			0.9
Other, Net	(0.5		)	0.2
Net Cash Used by Financing Activities	344.6			(183.4		)
Increase (Decrease) in Cash	604.2			45.2
Cash, Beginning of Year	45.7			115.7
Cash, End of Period	$	649.9		$	160.9

Page 7

Kemper Corporation Capital Metrics (Dollars and Shares in Millions, Except Per Share Amounts) (Unaudited)
	Three Months Ended
	Jun 30, 2018			Mar 31, 2018			Dec 31, 2017			Sep 30, 2017			Jun 30, 2017			Mar 31, 2017
Book Value Per Share
Numerator
Shareholders’ Equity	$	2,045.7		$	2,063.8		$	2,115.6		$	2,082.4		$	2,033.4		$	1,983.6
Less: Goodwill	(323.0		)	(323.0		)	(323.0		)	(323.0		)	(323.0		)	(323.0		)
Shareholders’ Equity Excluding Goodwill	$	1,722.7		$	1,740.8		$	1,792.6		$	1,759.4		$	1,710.4		$	1,660.6
Shareholders’ Equity	$	2,045.7		$	2,063.8		$	2,115.6		$	2,082.4		$	2,033.4		$	1,983.6
Less: Net Unrealized Gains on Fixed Maturities	(145.6		)	(190.5		)	(285.2		)	(237.1		)	(231.4		)	(198.2		)
Shareholders’ Equity Excluding Net Unrealized Gains on Fixed Maturities	$	1,900.1		$	1,873.3		$	1,830.4		$	1,845.3		$	1,802.0		$	1,785.4
Denominator
Common Shares Issued and Outstanding	51.559			51.533			51.462			51.448			51.294			51.295
Book Value Per Share	$	39.68		$	40.05		$	41.11		$	40.48		$	39.64		$	38.67
Book Value Per Share Excluding Goodwill	$	33.41		$	33.78		$	34.83		$	34.20		$	33.35		$	32.37
Book Value Per Share Excluding Unrealized on Fixed Maturities	$	36.85		$	36.35		$	35.57		$	35.87		$	35.13		$	34.81
Return on Shareholders’ Equity
Numerator
Rolling 12 Months Net Income	$	176.0		$	175.0		$	120.9		$	115.2		$	51.2		$	18.6
Denominator (5-point Average)
5-point Average Shareholders’ Equity	$	2,068.2		$	2,055.8		$	2,038.0		$	2,029.6		$	2,034.2		$	2,035.7
Rolling 12 Months Return on Average Shareholders' Equity (5-point Average)	8.5		%	8.5		%	5.9		%	5.7		%	2.5		%	0.9		%
Debt and Total Capitalization
Debt	$	951.8		$	592.3		$	592.3		$	592.2		$	592.1		$	751.8
Shareholders’ Equity	2,045.7			2,063.8			2,115.6			2,082.4			2,033.4			1,983.6
Total Capitalization	$	2,997.5		$	2,656.1		$	2,707.9		$	2,674.6		$	2,625.5		$	2,735.4
Ratio of Debt to Shareholders’ Equity	46.5		%	28.7		%	28.0		%	28.4		%	29.1		%	37.9		%
Ratio of Debt to Total Capitalization	31.8		%	22.3		%	21.9		%	22.1		%	22.6		%	27.5		%
Parent Company Liquidity
Kemper Holding Company Cash and Investments	$	708.6		$	184.4		$	197.3		$	188.2		$	188.4		$	288.2
Borrowings Available Under Credit Agreement	300.0			225.0			225.0			225.0			225.0			225.0
Parent Company Liquidity	$	1,008.6		$	409.4		$	422.3		$	413.2		$	413.4		$	513.2
Capital Returned to Shareholders
Cash Dividends Paid	12.4			12.5			12.4			12.4			12.4			12.3
Total Capital Returned to Shareholders	$	12.4		$	12.5		$	12.4		$	12.4		$	12.4		$	12.3

Page 8

Kemper Corporation Debt Outstanding and Ratings (Dollars in Millions) (Unaudited)
	Jun 30, 2018		Mar 31, 2018		Dec 31, 2017		Sep 30, 2017		Jun 30, 2017		Mar 31, 2017
Kemper Corporation:
4.35% Senior Notes due February 15, 2025	448.2		448.1		448.1		448.1		448.0		247.8
7.375% Subordinated Debentures due February 27, 2054 at Amortized Cost	144.2		144.2		144.2		144.1		144.1		144.1
Term Loan due June 29, 2020	249.4		—		—		—		—		—
Debt Outstanding	$	841.8	$	592.3	$	592.3	$	592.2	$	592.1	$	751.8
Subsidiary Debt:
Federal Home Loan Bank of Dallas	55.0		—		—		—		—		—
Federal Home Loan Bank of Chicago	65.0		10.0		—		—		—		—
	A.M. Best		Moody’s		S&P		Fitch
As of Date of Financial Supplement
Kemper Debt Ratings:
Senior Notes Payable	bbb-		Baa3		BBB-		BBB-
Subordinated Debentures	bb+		Ba1		BB		BB
Insurance Company Financial Strength Ratings:
Trinity Universal Insurance Company	A-		A3		A-		A-
United Insurance Company of America	A-		A3		A-		A-
Reserve National Insurance Company	A-		NR		NR		NR

NR - Not Rated

Page 9

Kemper Corporation Segment Revenues (Dollars in Millions) (Unaudited)
	Three Months Ended																	Six Months Ended
	Jun 30, 2018		Mar 31, 2018			Dec 31, 2017			Sep 30, 2017			Jun 30, 2017			Mar 31, 2017			Jun 30, 2018			Jun 30, 2017
Revenues:
Property & Casualty Insurance:
Earned Premiums:
Personal Automobile	$	416.2	$	371.1		$	364.3		$	353.0		$	339.1		$	320.7		$	787.3		$	659.8
Homeowners	62.2		61.8			65.2			66.7			66.6			66.3			124.0			132.9
Other Personal	10.2		10.1			10.5			10.7			10.8			10.7			20.3			21.5
Total Personal	488.6		443.0			440.0			430.4			416.5			397.7			931.6			814.2
Commercial Automobile	12.5		12.2			12.9			13.1			12.7			12.7			24.7			25.4
Total Earned Premiums	501.1		455.2			452.9			443.5			429.2			410.4			956.3			839.6
Net Investment Income	22.9		22.5			21.8			27.8			20.6			24.1			45.4			44.7
Other Income	0.4		0.3			0.2			0.4			0.3			0.2			0.7			0.5
Total Property & Casualty Insurance	524.4		478.0			474.9			471.7			450.1			434.7			1,002.4			884.8
Life & Health Insurance:
Earned Premiums:
Life	95.4		93.7			94.1			94.5			95.4			95.7			189.1			191.1
Accident and Health	43.8		43.3			41.1			42.0			39.5			39.1			87.1			78.6
Property	17.8		17.6			17.8			18.2			18.4			18.2			35.4			36.6
Total Earned Premiums	157.0		154.6			153.0			154.7			153.3			153.0			311.6			306.3
Net Investment Income	54.1		53.3			57.7			55.9			54.9			53.0			107.4			107.9
Other Income	0.9		0.8			0.7			0.7			0.6			0.6			1.7			1.2
Total Life & Health Insurance	212.0		208.7			211.4			211.3			208.8			206.6			420.7			415.4
Total Segment Revenues	736.4		686.7			686.3			683.0			658.9			641.3			1,423.1			1,300.2
Income from Change in Fair Value of Equity Securities	0.4		0.7			—			—			—			—			1.1			—
Net Realized Gains on Sales of Investments	3.8		2.6			11.5			8.1			26.4			10.5			6.4			36.9
Net Impairment Losses Recognized in Earnings	—		(0.5		)	(3.8		)	(2.9		)	(2.6		)	(5.0		)	(0.5		)	(7.6		)
Other	1.3		3.5			3.3			2.1			1.7			4.6			4.8			6.3
Total Revenues	$	741.9	$	693.0		$	697.3		$	690.3		$	684.4		$	651.4		$	1,434.9		$	1,335.8

Page 10

Kemper Corporation Segment Operating Results (Dollars in Millions)  (Unaudited)
	Three Months Ended																		Six Months Ended
	Jun 30, 2018			Mar 31, 2018			Dec 31, 2017			Sep 30, 2017			Jun 30, 2017			Mar 31, 2017			Jun 30, 2018			Jun 30, 2017
Segment Operating Profit (Loss):
Property & Casualty Insurance	$	18.2		$	44.5		$	0.8		$	30.8		$	4.2		$	(37.2	)	$	62.7		$	(33.0	)
Life & Health Insurance	33.4			29.9			38.7			36.0			31.2			32.6			63.3			63.8
Total Segment Operating Profit (Loss)	51.6			74.4			39.5			66.8			35.4			(4.6		)	126.0			30.8
Corporate and Other Operating Loss	(6.7		)	(4.0		)	(3.0		)	(3.7		)	(7.1		)	(4.4		)	(10.7		)	(11.5		)
Total Operating Profit (Loss)	44.9			70.4			36.5			63.1			28.3			(9.0		)	115.3			19.3
Income from Change in Fair Value of Equity Securities	0.4			0.7			—			—			—			—			1.1			—
Net Realized Gains on Sales of Investments	3.8			2.6			11.5			8.1			26.4			10.5			6.4			36.9
Net Impairment Losses Recognized in Earnings	—			(0.5		)	(3.8		)	(2.9		)	(2.6		)	(5.0		)	(0.5		)	(7.6		)
Acquisition Related Transaction and Integration Costs	(8.5		)	(6.2		)	—			—			—			—			(9.8		)	—
Income (Loss) from Continuing Operations before Income Taxes	$	40.6		$	67.0		$	44.2		$	68.3		$	52.1		$	(3.5	)	$	112.5		$	48.6
Segment Net Operating Income (Loss):
Property & Casualty Insurance	$	15.2		$	36.0		$	2.1		$	22.9		$	4.9		$	(22.1	)	$	51.2		$	(17.2	)
Life & Health Insurance	26.4			23.8			25.3			23.5			20.5			21.5			50.2			42.0
Total Segment Net Operating Income (Loss)	41.6			59.8			27.4			46.4			25.4			(0.6		)	101.4			24.8
Corporate and Other Net Operating Income (Loss) From:
Effects of Tax Law Changes	—			—			7.4			—			—			—			—			—
Other	(5.1		)	(2.3		)	(3.8		)	(2.0		)	(4.4		)	(3.3		)	(7.4		)	(7.7		)
Corporate and Other Net Operating Income (Loss)	(5.1		)	(2.3		)	3.6			(2.0		)	(4.4		)	(3.3		)	(7.4		)	(7.7		)
Adjusted Consolidated Net Operating Income (Loss)	36.5			57.5			31.0			44.4			21.0			(3.9		)	94.0			17.1
Net Income (Loss) From:
Change in Fair Value of Equity Securities	0.3			0.6			—			—			—			—			0.9			—
Net Realized Gains on Sales of Investments	3.0			2.1			7.4			5.3			17.2			6.8			5.1			24.0
Net Impairment Losses Recognized in Earnings	—			(0.4		)	(2.5		)	(1.9		)	(1.6		)	(3.3		)	(0.4		)	(4.9		)
Acquisition Related Transaction and Integration Costs	(2.3		)	(6.2		)	—			—			—			—			(8.5		)	—
Income (Loss) from Continuing Operations	$	37.5		$	53.6		$	35.9		$	47.8		$	36.6		$	(0.4	)	$	91.1		$	36.2

Page 11

Kemper Corporation Segment Operating Results (Dollars in Millions)  (Unaudited)
	Three Months Ended													Six Months Ended
	Jun 30, 2018			Mar 31, 2018		Dec 31, 2017		Sep 30, 2017		Jun 30, 2017		Mar 31, 2017		Jun 30, 2018		Jun 30, 2017
Earned Premiums by Product:
Personal Automobile	$	416.2		$	371.1	$	364.3	$	353.0	$	339.1	$	320.7	$	787.3	$	659.8
Homeowners	62.2			61.8		65.2		66.7		66.6		66.3		124.0		132.9
Other Personal Property and Casualty Insurance	28.0			27.7		28.3		28.9		29.2		28.9		55.7		58.1
Commercial Automobile	12.5			12.2		12.9		13.1		12.7		12.7		24.7		25.4
Life	95.4			93.7		94.1		94.5		95.4		95.7		189.1		191.1
Accident and Health	43.8			43.3		41.1		42.0		39.5		39.1		87.1		78.6
Total Earned Premiums	$	658.1		$	609.8	$	605.9	$	598.2	$	582.5	$	563.4	$	1,267.9	$	1,145.9
Net Investment Income by Segment:
Property & Casualty Insurance:
Equity Method Limited Liability Investments	$	2.2		$	4.3	$	1.5	$	7.3	$	1.8	$	4.6	$	6.5	$	6.4
All Other Net Investment Income	20.7			18.2		20.3		20.5		18.8		19.5		38.9		38.3
Net Investment Income	22.9			22.5		21.8		27.8		20.6		24.1		45.4		44.7
Life & Health Insurance:
Equity Method Limited Liability Investments	(0.9		)	2.4		1.3		3.5		2.0		1.7		1.5		3.7
All Other Net Investment Income	55.0			50.9		56.4		52.4		52.9		51.3		105.9		104.2
Net Investment Income	54.1			53.3		57.7		55.9		54.9		53.0		107.4		107.9
Total Segment Net Investment Income	77.0			75.8		79.5		83.7		75.5		77.1		152.8		152.6
Unallocated Net Investment Income:
Equity Method Limited Liability Investments	0.1			0.4		0.1		0.3		0.2		0.5		0.5		0.7
All Other Net Investment Income	1.3			3.0		3.0		1.9		1.4		4.0		4.3		5.4
Unallocated Net Investment Income	1.4			3.4		3.1		2.2		1.6		4.5		4.8		6.1
Net Investment Income	$	78.4		$	79.2	$	82.6	$	85.9	$	77.1	$	81.6	$	157.6	$	158.7

Page 12

Kemper Corporation Catastrophe Frequency and Severity (Dollars in Millions) (Unaudited)
	Six Months Ended Jun 30, 2018
	Property & Casualty Insurance Segment			Life & Health Insurance Segment			Consolidated
	Number of Events	Losses and LAE		Number of Events	Losses and LAE		Number of Events	Losses and LAE
Range of Losses and LAE Per Event:
Below $5	24	$	25.1	15	$	1.2	23	$	21.0
$5 - $10	—	—		—	—		1	5.1
$10 - $15	2	24.8		—	—		2	25.0
$15 - $20	—	—		—	—		—	—
$20 - $25	—	—		—	—		—	—
Greater Than $25	—	—		—	—		—	—
Total	26	$	49.9	15	$	1.2	26	$	51.1
	Six Months Ended Jun 30, 2017
	Property & Casualty Insurance Segment			Life & Health Insurance Segment			Consolidated
	Number of Events	Losses and LAE		Number of Events	Losses and LAE		Number of Events	Losses and LAE
Range of Losses and LAE Per Event:
Below $5	27	$	47.3	22	$	2.6	27	$	49.9
$5 - $10	1	8.6		—	—		1	8.6
$10 - $15	—	—		—	—		—	—
$15 - $20	—	—		—	—		—	—
$20 - $25	—	—		—	—		—	—
Greater Than $25	1	42.5		—	—		1	42.5
Total	29	$	98.4	22	$	2.6	29	$	101.0

Page 13

Kemper Corporation Property & Casualty Insurance Segment - Results of Operations and Selected Financial Information (Dollars in Millions) (Unaudited)
	Three Months Ended																		Six Months Ended
	Jun 30, 2018			Mar 31, 2018			Dec 31, 2017			Sep 30, 2017			Jun 30, 2017			Mar 31, 2017			Jun 30, 2018			Jun 30, 2017
Results of Operations
Net Premiums Written	$	536.9		$	488.9		$	433.3		$	466.7		$	440.7		$	428.9		$	1,025.8		$	869.6
Earned Premiums	501.1			455.2			452.9			443.5			429.2			410.4			956.3			839.6
Net Investment Income	22.9			22.5			21.8			27.8			20.6			24.1			45.4			44.7
Other Income	0.4			0.3			0.2			0.4			0.3			0.2			0.7			0.5
Total Revenues	524.4			478.0			474.9			471.7			450.1			434.7			1,002.4			884.8
Incurred Losses and LAE related to:
Current Year:
Non-catastrophe Losses and LAE	355.0			326.5			327.0			313.1			308.8			302.6			681.5			611.4
Catastrophe Losses and LAE	42.4			7.5			50.8			29.8			34.5			63.9			49.9			98.4
Prior Years:
Non-catastrophe Losses and LAE	4.7			3.7			1.5			1.6			9.6			11.8			8.4			21.4
Catastrophe Losses and LAE	(1.8		)	(5.7		)	(0.6		)	(1.2		)	(2.0		)	(1.2		)	(7.5		)	(3.2		)
Total Incurred Losses and LAE	400.3			332.0			378.7			343.3			350.9			377.1			732.3			728.0
Insurance Expenses	105.9			101.5			95.4			97.6			95.0			94.8			207.4			189.8
Operating Profit (Loss)	18.2			44.5			0.8			30.8			4.2			(37.2		)	62.7			(33.0		)
Income Tax Benefit (Expense)	(3.0		)	(8.5		)	1.3			(7.9		)	0.7			15.1			(11.5		)	15.8
Segment Net Operating Income (Loss)	$	15.2		$	36.0		$	2.1		$	22.9		$	4.9		$	(22.1	)	$	51.2		$	(17.2	)
Ratios Based On Earned Premiums
Current Year Non-catastrophe Losses and LAE Ratio	70.9		%	71.8		%	72.2		%	70.6		%	72.1		%	73.7		%	71.3		%	72.9		%
Current Year Catastrophe Losses and LAE Ratio	8.5			1.6			11.2			6.7			8.0			15.6			5.2			11.7
Prior Years Non-catastrophe Losses and LAE Ratio	0.9			0.8			0.3			0.4			2.2			2.9			0.9			2.5
Prior Years Catastrophe Losses and LAE Ratio	(0.4		)	(1.3		)	(0.1		)	(0.3		)	(0.5		)	(0.3		)	(0.8		)	(0.4		)
Total Incurred Loss and LAE Ratio	79.9			72.9			83.6			77.4			81.8			91.9			76.6			86.7
Insurance Expense Ratio	21.1			22.3			21.1			22.0			22.1			23.1			21.7			22.6
Combined Ratio	101.0		%	95.2		%	104.7		%	99.4		%	103.9		%	115.0		%	98.3		%	109.3		%
Underlying Combined Ratio 1
Current Year Non-catastrophe Losses and LAE Ratio	70.9		%	71.8		%	72.2		%	70.6		%	72.1		%	73.7		%	71.3		%	72.9		%
Insurance Expense Ratio	21.1			22.3			21.1			22.0			22.1			23.1			21.7			22.6
Underlying Combined Ratio	92.0		%	94.1		%	93.3		%	92.6		%	94.2		%	96.8		%	93.0		%	95.5		%
Non-GAAP Measure Reconciliation
Underlying Combined Ratio	92.0		%	94.1		%	93.3		%	92.6		%	94.2		%	96.8		%	93.0		%	95.5		%
Current Year Catastrophe Losses and LAE Ratio	8.5			1.6			11.2			6.7			8.0			15.6			5.2			11.7
Prior Years Non-catastrophe Losses and LAE Ratio	0.9			0.8			0.3			0.4			2.2			2.9			0.9			2.5
Prior Years Catastrophe Losses and LAE Ratio	(0.4		)	(1.3		)	(0.1		)	(0.3		)	(0.5		)	(0.3		)	(0.8		)	(0.4		)
Combined Ratio as Reported	101.0		%	95.2		%	104.7		%	99.4		%	103.9		%	115.0		%	98.3		%	109.3		%
1 Underlying Combined Ratio is a non-GAAP measure, which is computed as the difference between three operating ratios: the combined ratio, the effect of catastrophes (excluding development of prior-year catastrophes) on the combined ratio and the effect of prior-year reserve development at the reporting date (including development on prior-year catastrophes) on the combined ratio.

Page 14

Kemper Corporation Property & Casualty Insurance Segment - Results of Operations and Selected Financial Information (continued) (Dollars in Millions) (Unaudited)
	Jun 30, 2018		Mar 31, 2018		Dec 31, 2017		Sep 30, 2017		Jun 30, 2017		Mar 31, 2017
Insurance Reserves:
Automobile	$	845.9	$	801.6	$	795.9	$	769.0	$	768.3	$	764.0
Homeowners	137.2		124.6		139.7		111.8		110.7		133.6
Other Personal	38.6		39.4		40.7		41.2		43.5		40.3
Insurance Reserves	$	1,021.7	$	965.6	$	976.3	$	922.0	$	922.5	$	937.9
Insurance Reserves:
Loss Reserves:
Case	$	608.6	$	580.7	$	602.4	$	570.9	$	588.8	$	599.7
Incurred but Not Reported	267.8		247.8		239.3		219.2		201.9		204.8
Total Loss Reserves	876.4		828.5		841.7		790.1		790.7		804.5
LAE Reserves	145.3		137.1		134.6		131.9		131.8		133.4
Insurance Reserves	$	1,021.7	$	965.6	$	976.3	$	922.0	$	922.5	$	937.9

Page 15

Kemper Corporation Property & Casualty Insurance Segment Preferred Personal Automobile Insurance - Results of Operations and Selected Financial Information (Dollars in Millions) (Unaudited)
	Three Months Ended																		Six Months Ended
	Jun 30, 2018			Mar 31, 2018			Dec 31, 2017			Sep 30, 2017			Jun 30, 2017			Mar 31, 2017			Jun 30, 2018			Jun 30, 2017
Results of Operations
Net Premiums Written	$	120.9		$	106.2		$	103.0		$	112.6		$	108.7		$	100.1		$	227.1		$	208.8
Earned Premiums	$	108.7		$	104.9		$	106.5		$	106.5		$	105.5		$	104.3		$	213.6		$	209.8
Net Investment Income	6.0			5.9			5.7			7.8			5.6			6.6			11.9			12.2
Total Revenues	114.7			110.8			112.2			114.3			111.1			110.9			225.5			222.0
Incurred Losses and LAE related to:
Current Year:
Non-catastrophe Losses and LAE	74.7			73.6			81.1			74.2			76.8			76.9			148.3			153.7
Catastrophe Losses and LAE	3.9			0.6			(0.1		)	2.8			3.9			4.7			4.5			8.6
Prior Years:
Non-catastrophe Losses and LAE	(1.4		)	0.5			1.3			0.8			6.6			10.8			(0.9		)	17.4
Catastrophe Losses and LAE	(0.1		)	—			—			—			(0.2		)	—			(0.1		)	(0.2		)
Total Incurred Losses and LAE	77.1			74.7			82.3			77.8			87.1			92.4			151.8			179.5
Insurance Expenses	32.1			31.7			29.9			31.5			32.0			32.2			63.8			64.2
Operating Profit (Loss)	5.5			4.4			—			5.0			(8.0		)	(13.7		)	9.9			(21.7		)
Income Tax Benefit (Expense)	(1.0		)	(0.7		)	0.5			(3.5		)	3.4			5.3			(1.7		)	8.7
Total Product Line Net Operating Income (Loss)	$	4.5		$	3.7		$	0.5		$	1.5		$	(4.6	)	$	(8.4	)	$	8.2		$	(13.0	)
Ratios Based On Earned Premiums
Current Year Non-catastrophe Losses and LAE Ratio	68.7		%	70.1		%	76.2		%	69.7		%	72.8		%	73.7		%	69.4		%	73.3		%
Current Year Catastrophe Losses and LAE Ratio	3.6			0.6			(0.1		)	2.6			3.7			4.5			2.1			4.1
Prior Years Non-catastrophe Losses and LAE Ratio	(1.3		)	0.5			1.2			0.8			6.3			10.4			(0.4		)	8.3
Prior Years Catastrophe Losses and LAE Ratio	(0.1		)	—			—			—			(0.2		)	—			—			(0.1		)
Total Incurred Loss and LAE Ratio	70.9			71.2			77.3			73.1			82.6			88.6			71.1			85.6
Insurance Expense Ratio	29.5			30.2			28.1			29.6			30.3			30.9			29.9			30.6
Combined Ratio	100.4		%	101.4		%	105.4		%	102.7		%	112.9		%	119.5		%	101.0		%	116.2		%
Underlying Combined Ratio 1
Current Year Non-catastrophe Losses and LAE Ratio	68.7		%	70.1		%	76.2		%	69.7		%	72.8		%	73.7		%	69.4		%	73.3		%
Insurance Expense Ratio	29.5			30.2			28.1			29.6			30.3			30.9			29.9			30.6
Underlying Combined Ratio	98.2		%	100.3		%	104.3		%	99.3		%	103.1		%	104.6		%	99.3		%	103.9		%
Non-GAAP Measure Reconciliation
Underlying Combined Ratio	98.2		%	100.3		%	104.3		%	99.3		%	103.1		%	104.6		%	99.3		%	103.9		%
Current Year Catastrophe Losses and LAE Ratio	3.6			0.6			(0.1		)	2.6			3.7			4.5			2.1			4.1
Prior Years Non-catastrophe Losses and LAE Ratio	(1.3		)	0.5			1.2			0.8			6.3			10.4			(0.4		)	8.3
Prior Years Catastrophe Losses and LAE Ratio	(0.1		)	—			—			—			(0.2		)	—			—			(0.1		)
Combined Ratio as Reported	100.4		%	101.4		%	105.4		%	102.7		%	112.9		%	119.5		%	101.0		%	116.2		%
1 Underlying Combined Ratio is a non-GAAP measure, which is computed as the difference between three operating ratios: the combined ratio, the effect of catastrophes (excluding development of prior-year catastrophes) on the combined ratio and the effect of prior-year reserve development at the reporting date (including development on prior-year catastrophes) on the combined ratio.

Page 16

Kemper Corporation Property & Casualty Insurance Segment Non-standard Personal Automobile Insurance - Results of Operations and Selected Financial Information (Dollars in Millions) (Unaudited)
	Three Months Ended																		Six Months Ended
	Jun 30, 2018			Mar 31, 2018			Dec 31, 2017			Sep 30, 2017			Jun 30, 2017			Mar 31, 2017			Jun 30, 2018			Jun 30, 2017
Results of Operations
Net Premiums Written	$	325.4		$	304.9		$	249.8		$	259.8		$	237.5		$	245.2		$	630.3		$	482.7
Earned Premiums	$	307.5		$	266.2		$	257.8		$	246.5		$	233.6		$	216.4		$	573.7		$	450.0
Net Investment Income	8.6			8.2			7.8			8.9			7.2			8.2			16.8			15.4
Other Income	0.3			0.3			0.2			0.3			0.3			0.2			0.6			0.5
Total Revenues	316.4			274.7			265.8			255.7			241.1			224.8			591.1			465.9
Incurred Losses and LAE related to:
Current Year:
Non-catastrophe Losses and LAE	237.8			202.8			204.6			185.5			183.9			176.4			440.6			360.3
Catastrophe Losses and LAE	1.7			0.2			(0.8		)	1.5			2.4			1.7			1.9			4.1
Prior Years:
Non-catastrophe Losses and LAE	4.2			0.2			2.8			2.1			(1.0		)	(0.8		)	4.4			(1.8		)
Catastrophe Losses and LAE	—			(0.2		)	—			(0.1		)	—			(0.1		)	(0.2		)	(0.1		)
Total Incurred Losses and LAE	243.7			203.0			206.6			189.0			185.3			177.2			446.7			362.5
Insurance Expenses	46.7			45.2			41.5			39.7			36.9			35.5			91.9			72.4
Operating Profit (Loss)	26.0			26.5			17.7			27.0			18.9			12.1			52.5			31.0
Income Tax Benefit (Expense)	(5.3		)	(5.2		)	(5.4		)	(8.5		)	(5.7		)	(3.4		)	(10.5		)	(9.1		)
Total Product Line Net Operating Income (Loss)	$	20.7		$	21.3		$	12.3		$	18.5		$	13.2		$	8.7		$	42.0		$	21.9
Ratios Based On Earned Premiums
Current Year Non-catastrophe Losses and LAE Ratio	77.3		%	76.2		%	79.3		%	75.2		%	78.7		%	81.5		%	76.8		%	80.1		%
Current Year Catastrophe Losses and LAE Ratio	0.6			0.1			(0.3		)	0.6			1.0			0.8			0.3			0.9
Prior Years Non-catastrophe Losses and LAE Ratio	1.4			0.1			1.1			0.9			(0.4		)	(0.4		)	0.8			(0.4		)
Prior Years Catastrophe Losses and LAE Ratio	—			(0.1		)	—			—			—			—			—			—
Total Incurred Loss and LAE Ratio	79.3			76.3			80.1			76.7			79.3			81.9			77.9			80.6
Insurance Expense Ratio	15.2			17.0			16.1			16.1			15.8			16.4			16.0			16.1
Combined Ratio	94.5		%	93.3		%	96.2		%	92.8		%	95.1		%	98.3		%	93.9		%	96.7		%
Underlying Combined Ratio 1
Current Year Non-catastrophe Losses and LAE Ratio	77.3		%	76.2		%	79.3		%	75.2		%	78.7		%	81.5		%	76.8		%	80.1		%
Insurance Expense Ratio	15.2			17.0			16.1			16.1			15.8			16.4			16.0			16.1
Underlying Combined Ratio	92.5		%	93.2		%	95.4		%	91.3		%	94.5		%	97.9		%	92.8		%	96.2		%
Non-GAAP Measure Reconciliation
Underlying Combined Ratio	92.5		%	93.2		%	95.4		%	91.3		%	94.5		%	97.9		%	92.8		%	96.2		%
Current Year Catastrophe Losses and LAE Ratio	0.6			0.1			(0.3		)	0.6			1.0			0.8			0.3			0.9
Prior Years Non-catastrophe Losses and LAE Ratio	1.4			0.1			1.1			0.9			(0.4		)	(0.4		)	0.8			(0.4		)
Prior Years Catastrophe Losses and LAE Ratio	—			(0.1		)	—			—			—			—			—			—
Combined Ratio as Reported	94.5		%	93.3		%	96.2		%	92.8		%	95.1		%	98.3		%	93.9		%	96.7		%
1 Underlying Combined Ratio is a non-GAAP measure, which is computed as the difference between three operating ratios: the combined ratio, the effect of catastrophes (excluding development of prior-year catastrophes) on the combined ratio and the effect of prior-year reserve development at the reporting date (including development on prior-year catastrophes) on the combined ratio.

Page 17

Kemper Corporation Property & Casualty Insurance Segment Total Personal Automobile Insurance - Results of Operations and Selected Financial Information (Dollars in Millions) (Unaudited)
	Three Months Ended																		Six Months Ended
	Jun 30, 2018			Mar 31, 2018			Dec 31, 2017			Sep 30, 2017			Jun 30, 2017			Mar 31, 2017			Jun 30, 2018			Jun 30, 2017
Results of Operations
Net Premiums Written	$	446.3		$	411.1		$	352.8		$	372.4		$	346.2		$	345.3		$	857.4		$	691.5
Earned Premiums	$	416.2		$	371.1		$	364.3		$	353.0		$	339.1		$	320.7		$	787.3		$	659.8
Net Investment Income	14.6			14.1			13.5			16.7			12.8			14.8			28.7			27.6
Other Income	0.3			0.3			0.2			0.3			0.3			0.2			0.6			0.5
Total Revenues	431.1			385.5			378.0			370.0			352.2			335.7			816.6			687.9
Incurred Losses and LAE related to:
Current Year:
Non-catastrophe Losses and LAE	312.5			276.4			285.7			259.7			260.7			253.3			588.9			514.0
Catastrophe Losses and LAE	5.6			0.8			(0.9		)	4.3			6.3			6.4			6.4			12.7
Prior Years:
Non-catastrophe Losses and LAE	2.8			0.7			4.1			2.9			5.6			10.0			3.5			15.6
Catastrophe Losses and LAE	(0.1		)	(0.2		)	—			(0.1		)	(0.2		)	(0.1		)	(0.3		)	(0.3		)
Total Incurred Losses and LAE	320.8			277.7			288.9			266.8			272.4			269.6			598.5			542.0
Insurance Expenses	78.8			76.9			71.4			71.2			68.9			67.7			155.7			136.6
Operating Profit (Loss)	31.5			30.9			17.7			32.0			10.9			(1.6		)	62.4			9.3
Income Tax Benefit (Expense)	(6.3		)	(5.9		)	(4.9		)	(12.0		)	(2.3		)	1.9			(12.2		)	(0.4		)
Total Product Line Net Operating Income (Loss)	$	25.2		$	25.0		$	12.8		$	20.0		$	8.6		$	0.3		$	50.2		$	8.9
Ratios Based On Earned Premiums
Current Year Non-catastrophe Losses and LAE Ratio	75.1		%	74.5		%	78.4		%	73.6		%	76.8		%	79.0		%	74.8		%	77.8		%
Current Year Catastrophe Losses and LAE Ratio	1.3			0.2			(0.2		)	1.2			1.9			2.0			0.8			1.9
Prior Years Non-catastrophe Losses and LAE Ratio	0.7			0.2			1.1			0.8			1.7			3.1			0.4			2.4
Prior Years Catastrophe Losses and LAE Ratio	—			(0.1		)	—			—			(0.1		)	—			—			—
Total Incurred Loss and LAE Ratio	77.1			74.8			79.3			75.6			80.3			84.1			76.0			82.1
Insurance Expense Ratio	18.9			20.7			19.6			20.2			20.3			21.1			19.8			20.7
Combined Ratio	96.0		%	95.5		%	98.9		%	95.8		%	100.6		%	105.2		%	95.8		%	102.8		%
Underlying Combined Ratio 1
Current Year Non-catastrophe Losses and LAE Ratio	75.1		%	74.5		%	78.4		%	73.6		%	76.8		%	79.0		%	74.8		%	77.8		%
Insurance Expense Ratio	18.9			20.7			19.6			20.2			20.3			21.1			19.8			20.7
Underlying Combined Ratio	94.0		%	95.2		%	98.0		%	93.8		%	97.1		%	100.1		%	94.6		%	98.5		%
Non-GAAP Measure Reconciliation
Underlying Combined Ratio	94.0		%	95.2		%	98.0		%	93.8		%	97.1		%	100.1		%	94.6		%	98.5		%
Current Year Catastrophe Losses and LAE Ratio	1.3			0.2			(0.2		)	1.2			1.9			2.0			0.8			1.9
Prior Years Non-catastrophe Losses and LAE Ratio	0.7			0.2			1.1			0.8			1.7			3.1			0.4			2.4
Prior Years Catastrophe Losses and LAE Ratio	—			(0.1		)	—			—			(0.1		)	—			—			—
Combined Ratio as Reported	96.0		%	95.5		%	98.9		%	95.8		%	100.6		%	105.2		%	95.8		%	102.8		%
1 Underlying Combined Ratio is a non-GAAP measure, which is computed as the difference between three operating ratios: the combined ratio, the effect of catastrophes (excluding development of prior-year catastrophes) on the combined ratio and the effect of prior-year reserve development at the reporting date (including development on prior-year catastrophes) on the combined ratio.

Page 18

Kemper Corporation Property & Casualty Insurance Segment Commercial Automobile Insurance - Results of Operations and Selected Financial Information (Dollars in Millions) (Unaudited)
	Three Months Ended																		Six Months Ended
	Jun 30, 2018			Mar 31, 2018			Dec 31, 2017			Sep 30, 2017			Jun 30, 2017			Mar 31, 2017			Jun 30, 2018			Jun 30, 2017
Results of Operations
Net Premiums Written	$	13.5		$	13.5		$	10.6		$	12.6		$	13.3		$	14.7		$	27.0		$	28.0
Earned Premiums	$	12.5		$	12.2		$	12.9		$	13.1		$	12.7		$	12.7		$	24.7		$	25.4
Net Investment Income	1.3			1.4			1.4			1.8			1.4			1.5			2.7			2.9
Other Income	0.1			—			—			0.1			—			—			0.1			—
Total Revenues	13.9			13.6			14.3			15.0			14.1			14.2			27.5			28.3
Incurred Losses and LAE related to:
Current Year:
Non-catastrophe Losses and LAE	9.4			9.5			10.0			11.3			9.9			9.6			18.9			19.5
Catastrophe Losses and LAE	0.4			—			—			0.2			0.4			0.1			0.4			0.5
Prior Years:
Non-catastrophe Losses and LAE	(0.1		)	(0.7		)	(1.1		)	(1.3		)	1.6			1.8			(0.8		)	3.4
Catastrophe Losses and LAE	—			(0.1		)	—			(0.1		)	—			—			(0.1		)	—
Total Incurred Losses and LAE	9.7			8.7			8.9			10.1			11.9			11.5			18.4			23.4
Insurance Expenses	2.3			2.7			2.6			3.0			2.8			3.0			5.0			5.8
Operating Profit (Loss)	1.9			2.2			2.8			1.9			(0.6		)	(0.3		)	4.1			(0.9		)
Income Tax Benefit (Expense)	(0.4		)	(0.4		)	(0.9		)	(0.5		)	0.3			0.2			(0.8		)	0.5
Total Product Line Net Operating Income (Loss)	$	1.5		$	1.8		$	1.9		$	1.4		$	(0.3	)	$	(0.1	)	$	3.3		$	(0.4	)
Ratios Based On Earned Premiums
Current Year Non-catastrophe Losses and LAE Ratio	75.2		%	77.8		%	77.5		%	86.3		%	78.0		%	75.6		%	76.5		%	76.7		%
Current Year Catastrophe Losses and LAE Ratio	3.2			—			—			1.5			3.1			0.8			1.6			2.0
Prior Years Non-catastrophe Losses and LAE Ratio	(0.8		)	(5.7		)	(8.5		)	(9.9		)	12.6			14.2			(3.2		)	13.4
Prior Years Catastrophe Losses and LAE Ratio	—			(0.8		)	—			(0.8		)	—			—			(0.4		)	—
Total Incurred Loss and LAE Ratio	77.6			71.3			69.0			77.1			93.7			90.6			74.5			92.1
Insurance Expense Ratio	18.4			22.1			20.2			22.9			22.0			23.6			20.2			22.8
Combined Ratio	96.0		%	93.4		%	89.2		%	100.0		%	115.7		%	114.2		%	94.7		%	114.9		%
Underlying Combined Ratio 1
Current Year Non-catastrophe Losses and LAE Ratio	75.2		%	77.8		%	77.5		%	86.3		%	78.0		%	75.6		%	76.5		%	76.7		%
Insurance Expense Ratio	18.4			22.1			20.2			22.9			22.0			23.6			20.2			22.8
Underlying Combined Ratio	93.6		%	99.9		%	97.7		%	109.2		%	100.0		%	99.2		%	96.7		%	99.5		%
Non-GAAP Measure Reconciliation
Underlying Combined Ratio	93.6		%	99.9		%	97.7		%	109.2		%	100.0		%	99.2		%	96.7		%	99.5		%
Current Year Catastrophe Losses and LAE Ratio	3.2			—			—			1.5			3.1			0.8			1.6			2.0
Prior Years Non-catastrophe Losses and LAE Ratio	(0.8		)	(5.7		)	(8.5		)	(9.9		)	12.6			14.2			(3.2		)	13.4
Prior Years Catastrophe Losses and LAE Ratio	—			(0.8		)	—			(0.8		)	—			—			(0.4		)	—
Combined Ratio as Reported	96.0		%	93.4		%	89.2		%	100.0		%	115.7		%	114.2		%	94.7		%	114.9		%
1 Underlying Combined Ratio is a non-GAAP measure, which is computed as the difference between three operating ratios: the combined ratio, the effect of catastrophes (excluding development of prior-year catastrophes) on the combined ratio and the effect of prior-year reserve development at the reporting date (including development on prior-year catastrophes) on the combined ratio.

Page 19

Kemper Corporation Property & Casualty Insurance Segment Total Automobile Insurance - Results of Operations and Selected Financial Information (Dollars in Millions) (Unaudited)
	Three Months Ended																		Six Months Ended
	Jun 30, 2018			Mar 31, 2018			Dec 31, 2017			Sep 30, 2017			Jun 30, 2017			Mar 31, 2017			Jun 30, 2018			Jun 30, 2017
Results of Operations
Net Premiums Written	$	459.8		$	424.6		$	363.4		$	385.0		$	359.5		$	360.0		$	884.4		$	719.5
Earned Premiums	$	428.7		$	383.3		$	377.2		$	366.1		$	351.8		$	333.4		$	812.0		$	685.2
Net Investment Income	15.9			15.5			14.9			18.5			14.2			16.3			31.4			30.5
Other Income	0.4			0.3			0.2			0.4			0.3			0.2			0.7			0.5
Total Revenues	445.0			399.1			392.3			385.0			366.3			349.9			844.1			716.2
Incurred Losses and LAE related to:
Current Year:
Non-catastrophe Losses and LAE	321.9			285.9			295.7			271.0			270.6			262.9			607.8			533.5
Catastrophe Losses and LAE	6.0			0.8			(0.9		)	4.5			6.7			6.5			6.8			13.2
Prior Years:
Non-catastrophe Losses and LAE	2.7			—			3.0			1.6			7.2			11.8			2.7			19.0
Catastrophe Losses and LAE	(0.1		)	(0.3		)	—			(0.2		)	(0.2		)	(0.1		)	(0.4		)	(0.3		)
Total Incurred Losses and LAE	330.5			286.4			297.8			276.9			284.3			281.1			616.9			565.4
Insurance Expenses	81.1			79.6			74.0			74.2			71.7			70.7			160.7			142.4
Operating Profit (Loss)	33.4			33.1			20.5			33.9			10.3			(1.9		)	66.5			8.4
Income Tax Benefit (Expense)	(6.7		)	(6.3		)	(5.8		)	(12.5		)	(2.0		)	2.1			(13.0		)	0.1
Total Product Line Net Operating Income (Loss)	$	26.7		$	26.8		$	14.7		$	21.4		$	8.3		$	0.2		$	53.5		$	8.5
Ratios Based On Earned Premiums
Current Year Non-catastrophe Losses and LAE Ratio	75.1		%	74.6		%	78.4		%	74.1		%	77.0		%	78.9		%	74.9		%	77.8		%
Current Year Catastrophe Losses and LAE Ratio	1.4			0.2			(0.2		)	1.2			1.9			1.9			0.8			1.9
Prior Years Non-catastrophe Losses and LAE Ratio	0.6			—			0.8			0.4			2.0			3.5			0.3			2.8
Prior Years Catastrophe Losses and LAE Ratio	—			(0.1		)	—			(0.1		)	(0.1		)	—			—			—
Total Incurred Loss and LAE Ratio	77.1			74.7			79.0			75.6			80.8			84.3			76.0			82.5
Insurance Expense Ratio	18.9			20.8			19.6			20.3			20.4			21.2			19.8			20.8
Combined Ratio	96.0		%	95.5		%	98.6		%	95.9		%	101.2		%	105.5		%	95.8		%	103.3		%
Underlying Combined Ratio 1
Current Year Non-catastrophe Losses and LAE Ratio	75.1		%	74.6		%	78.4		%	74.1		%	77.0		%	78.9		%	74.9		%	77.8		%
Insurance Expense Ratio	18.9			20.8			19.6			20.3			20.4			21.2			19.8			20.8
Underlying Combined Ratio	94.0		%	95.4		%	98.0		%	94.4		%	97.4		%	100.1		%	94.7		%	98.6		%
Non-GAAP Measure Reconciliation
Underlying Combined Ratio	94.0		%	95.4		%	98.0		%	94.4		%	97.4		%	100.1		%	94.7		%	98.6		%
Current Year Catastrophe Losses and LAE Ratio	1.4			0.2			(0.2		)	1.2			1.9			1.9			0.8			1.9
Prior Years Non-catastrophe Losses and LAE Ratio	0.6			—			0.8			0.4			2.0			3.5			0.3			2.8
Prior Years Catastrophe Losses and LAE Ratio	—			(0.1		)	—			(0.1		)	(0.1		)	—			—			—
Combined Ratio as Reported	96.0		%	95.5		%	98.6		%	95.9		%	101.2		%	105.5		%	95.8		%	103.3		%
1 Underlying Combined Ratio is a non-GAAP measure, which is computed as the difference between three operating ratios: the combined ratio, the effect of catastrophes (excluding development of prior-year catastrophes) on the combined ratio and the effect of prior-year reserve development at the reporting date (including development on prior-year catastrophes) on the combined ratio.

Page 20

Kemper Corporation Property & Casualty Insurance Segment Homeowners Insurance - Results of Operations and Selected Financial Information (Dollars in Millions) (Unaudited)
	Three Months Ended																		Six Months Ended
	Jun 30, 2018			Mar 31, 2018			Dec 31, 2017			Sep 30, 2017			Jun 30, 2017			Mar 31, 2017			Jun 30, 2018			Jun 30, 2017
Results of Operations
Net Premiums Written	$	66.6		$	55.1		$	60.4		$	70.8		$	70.1		$	59.2		$	121.7		$	129.3
Earned Premiums	$	62.2		$	61.8		$	65.2		$	66.7		$	66.6		$	66.3		$	124.0		$	132.9
Net Investment Income	6.0			6.0			5.9			7.9			5.7			6.5			12.0			12.2
Total Revenues	68.2			67.8			71.1			74.6			72.3			72.8			136.0			145.1
Incurred Losses and LAE related to:
Current Year:
Non-catastrophe Losses and LAE	28.8			35.2			26.3			36.9			32.5			33.8			64.0			66.3
Catastrophe Losses and LAE	35.9			6.5			49.3			24.8			26.7			56.5			42.4			83.2
Prior Years:
Non-catastrophe Losses and LAE	2.7			5.6			1.6			0.9			1.5			0.7			8.3			2.2
Catastrophe Losses and LAE	(1.3		)	(5.1		)	(0.5		)	(0.8		)	(1.8		)	(0.6		)	(6.4		)	(2.4		)
Total Incurred Losses and LAE	66.1			42.2			76.7			61.8			58.9			90.4			108.3			149.3
Insurance Expenses	21.9			19.2			18.7			20.3			20.6			21.0			41.1			41.6
Operating Profit (Loss)	(19.8		)	6.4			(24.3		)	(7.5		)	(7.2		)	(38.6		)	(13.4		)	(45.8		)
Income Tax Benefit (Expense)	4.4			(1.2		)	8.7			10.5			3.1			14.0			3.2			17.1
Total Product Line Net Operating Income (Loss)	$	(15.4	)	$	5.2		$	(15.6	)	$	3.0		$	(4.1	)	$	(24.6	)	$	(10.2	)	$	(28.7	)
Ratios Based On Earned Premiums
Current Year Non-catastrophe Losses and LAE Ratio	46.4		%	57.0		%	40.3		%	55.4		%	48.7		%	50.9		%	51.6		%	49.8		%
Current Year Catastrophe Losses and LAE Ratio	57.7			10.5			75.6			37.2			40.1			85.2			34.2			62.6
Prior Years Non-catastrophe Losses and LAE Ratio	4.3			9.1			2.5			1.3			2.3			1.1			6.7			1.7
Prior Years Catastrophe Losses and LAE Ratio	(2.1		)	(8.3		)	(0.8		)	(1.2		)	(2.7		)	(0.9		)	(5.2		)	(1.8		)
Total Incurred Loss and LAE Ratio	106.3			68.3			117.6			92.7			88.4			136.3			87.3			112.3
Insurance Expense Ratio	35.2			31.1			28.7			30.4			30.9			31.7			33.1			31.3
Combined Ratio	141.5		%	99.4		%	146.3		%	123.1		%	119.3		%	168.0		%	120.4		%	143.6		%
Underlying Combined Ratio 1
Current Year Non-catastrophe Losses and LAE Ratio	46.4		%	57.0		%	40.3		%	55.4		%	48.7		%	50.9		%	51.6		%	49.8		%
Insurance Expense Ratio	35.2			31.1			28.7			30.4			30.9			31.7			33.1			31.3
Underlying Combined Ratio	81.6		%	88.1		%	69.0		%	85.8		%	79.6		%	82.6		%	84.7		%	81.1		%
Non-GAAP Measure Reconciliation
Underlying Combined Ratio	81.6		%	88.1		%	69.0		%	85.8		%	79.6		%	82.6		%	84.7		%	81.1		%
Current Year Catastrophe Losses and LAE Ratio	57.7			10.5			75.6			37.2			40.1			85.2			34.2			62.6
Prior Years Non-catastrophe Losses and LAE Ratio	4.3			9.1			2.5			1.3			2.3			1.1			6.7			1.7
Prior Years Catastrophe Losses and LAE Ratio	(2.1		)	(8.3		)	(0.8		)	(1.2		)	(2.7		)	(0.9		)	(5.2		)	(1.8		)
Combined Ratio as Reported	141.5		%	99.4		%	146.3		%	123.1		%	119.3		%	168.0		%	120.4		%	143.6		%
1 Underlying Combined Ratio is a non-GAAP measure, which is computed as the difference between three operating ratios: the combined ratio, the effect of catastrophes (excluding development of prior-year catastrophes) on the combined ratio and the effect of prior-year reserve development at the reporting date (including development on prior-year catastrophes) on the combined ratio.

Page 21

Kemper Corporation Property & Casualty Insurance Segment Other Personal Lines - Results of Operations and Selected Financial Information (Dollars in Millions) (Unaudited)
	Three Months Ended																		Six Months Ended
	Jun 30, 2018			Mar 31, 2018			Dec 31, 2017			Sep 30, 2017			Jun 30, 2017			Mar 31, 2017			Jun 30, 2018			Jun 30, 2017
Results of Operations
Net Premiums Written	$	10.5		$	9.2		$	9.5		$	10.9		$	11.1		$	9.7		$	19.7		$	20.8
Earned Premiums	$	10.2		$	10.1		$	10.5		$	10.7		$	10.8		$	10.7		$	20.3		$	21.5
Net Investment Income	1.0			1.0			1.0			1.4			0.7			1.3			2.0			2.0
Total Revenues	11.2			11.1			11.5			12.1			11.5			12.0			22.3			23.5
Incurred Losses and LAE related to:
Current Year:
Non-catastrophe Losses and LAE	4.3			5.4			5.0			5.2			5.7			5.9			9.7			11.6
Catastrophe Losses and LAE	0.5			0.2			2.4			0.5			1.1			0.9			0.7			2.0
Prior Years:
Non-catastrophe Losses and LAE	(0.7		)	(1.9		)	(3.1		)	(0.9		)	0.9			(0.7		)	(2.6		)	0.2
Catastrophe Losses and LAE	(0.4		)	(0.3		)	(0.1		)	(0.2		)	—			(0.5		)	(0.7		)	(0.5		)
Total Incurred Losses and LAE	3.7			3.4			4.2			4.6			7.7			5.6			7.1			13.3
Insurance Expenses	2.9			2.7			2.7			3.1			2.7			3.1			5.6			5.8
Operating Profit	4.6			5.0			4.6			4.4			1.1			3.3			9.6			4.4
Income Tax Expense	(0.7		)	(1.0		)	(1.6		)	(5.9		)	(0.4		)	(1.0		)	(1.7		)	(4.4		)
Total Product Line Net Operating Income (Loss)	$	3.9		$	4.0		$	3.0		$	(1.5	)	$	0.7		$	2.3		$	7.9		$	—
Ratios Based On Earned Premiums
Current Year Non-catastrophe Losses and LAE Ratio	42.2		%	53.5		%	47.6		%	48.6		%	52.8		%	55.1		%	47.8		%	54.0		%
Current Year Catastrophe Losses and LAE Ratio	4.9			2.0			22.9			4.7			10.2			8.4			3.4			9.3
Prior Years Non-catastrophe Losses and LAE Ratio	(6.9		)	(18.8		)	(29.5		)	(8.4		)	8.3			(6.5		)	(12.8		)	0.9
Prior Years Catastrophe Losses and LAE Ratio	(3.9		)	(3.0		)	(1.0		)	(1.9		)	—			(4.7		)	(3.4		)	(2.3		)
Total Incurred Loss and LAE Ratio	36.3			33.7			40.0			43.0			71.3			52.3			35.0			61.9
Insurance Expense Ratio	28.4			26.7			25.7			29.0			25.0			29.0			27.6			27.0
Combined Ratio	64.7		%	60.4		%	65.7		%	72.0		%	96.3		%	81.3		%	62.6		%	88.9		%
Underlying Combined Ratio 1
Current Year Non-catastrophe Losses and LAE Ratio	42.2		%	53.5		%	47.6		%	48.6		%	52.8		%	55.1		%	47.8		%	54.0		%
Insurance Expense Ratio	28.4			26.7			25.7			29.0			25.0			29.0			27.6			27.0
Underlying Combined Ratio	70.6		%	80.2		%	73.3		%	77.6		%	77.8		%	84.1		%	75.4		%	81.0		%
Non-GAAP Measure Reconciliation
Underlying Combined Ratio	70.6		%	80.2		%	73.3		%	77.6		%	77.8		%	84.1		%	75.4		%	81.0		%
Current Year Catastrophe Losses and LAE Ratio	4.9			2.0			22.9			4.7			10.2			8.4			3.4			9.3
Prior Years Non-catastrophe Losses and LAE Ratio	(6.9		)	(18.8		)	(29.5		)	(8.4		)	8.3			(6.5		)	(12.8		)	0.9
Prior Years Catastrophe Losses and LAE Ratio	(3.9		)	(3.0		)	(1.0		)	(1.9		)	—			(4.7		)	(3.4		)	(2.3		)
Combined Ratio as Reported	64.7		%	60.4		%	65.7		%	72.0		%	96.3		%	81.3		%	62.6		%	88.9		%
1 Underlying Combined Ratio is a non-GAAP measure, which is computed as the difference between three operating ratios: the combined ratio, the effect of catastrophes (excluding development of prior-year catastrophes) on the combined ratio and the effect of prior-year reserve development at the reporting date (including development on prior-year catastrophes) on the combined ratio.

Page 22

Kemper Corporation Life & Health Insurance Segment - Results of Operations and Selected Financial Information (Dollars in Millions) (Unaudited)
	Three Months Ended																		Six Months Ended
	Jun 30, 2018			Mar 31, 2018			Dec 31, 2017			Sep 30, 2017			Jun 30, 2017			Mar 31, 2017			Jun 30, 2018			Jun 30, 2017
Results of Operations
Earned Premiums	$	157.0		$	154.6		$	153.0		$	154.7		$	153.3		$	153.0		$	311.6		$	306.3
Net Investment Income	54.1			53.3			57.7			55.9			54.9			53.0			107.4			107.9
Other Income	0.9			0.8			0.7			0.7			0.6			0.6			1.7			1.2
Total Revenues	212.0			208.7			211.4			211.3			208.8			206.6			420.7			415.4
Policyholders’ Benefits and Incurred Losses and LAE	99.2			104.9			93.8			96.8			96.5			100.3			204.1			196.8
Insurance Expenses	79.4			73.9			78.9			78.5			81.1			73.7			153.3			154.8
Operating Profit	33.4			29.9			38.7			36.0			31.2			32.6			63.3			63.8
Income Tax Expense	(7.0		)	(6.1		)	(13.4		)	(12.5		)	(10.7		)	(11.1		)	(13.1		)	(21.8		)
Segment Net Operating Income	$	26.4		$	23.8		$	25.3		$	23.5		$	20.5		$	21.5		$	50.2		$	42.0

	Jun 30, 2018		Mar 31, 2018		Dec 31, 2017		Sep 30, 2017		Jun 30, 2017
Insurance Reserves:
Future Policyholder Benefits	$	3,379.8	$	3,366.7	$	3,357.5	$	3,345.7	$	3,335.7
Incurred Losses and LAE Reserves:
Life	137.7		142.4		140.0		141.6		141.8
Accident and Health	26.0		25.2		23.5		22.5		22.2
Property	3.8		4.1		4.1		7.3		4.2
Total Incurred Losses and LAE Reserves	167.5		171.7		167.6		171.4		168.2
Insurance Reserves	$	3,547.3	$	3,538.4	$	3,525.1	$	3,517.1	$	3,503.9

Page 23

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, 2018			Mar 31, 2018			Dec 31, 2017			Sep 30, 2017			Jun 30, 2017			Mar 31, 2017			Jun 30, 2018			Jun 30, 2017
Results of Operations
Earned Premiums	$	95.4		$	93.7		$	94.1		$	94.5		$	95.4		$	95.7		$	189.1		$	191.1
Net Investment Income	52.0			51.3			55.9			54.1			52.9			51.4			103.3			104.3
Other Income	0.9			0.7			0.7			0.6			0.6			0.5			1.6			1.1
Total Revenues	148.3			145.7			150.7			149.2			148.9			147.6			294.0			296.5
Policyholders’ Benefits and Incurred Losses and LAE	69.4			73.4			66.8			66.4			68.8			72.1			142.8			140.9
Insurance Expenses	51.2			47.4			51.7			53.0			54.8			48.4			98.6			103.2
Operating Profit	27.7			24.9			32.2			29.8			25.3			27.1			52.6			52.4
Income Tax Expense	(5.9		)	(5.0		)	(11.1		)	(10.3		)	(8.7		)	(9.2		)	(10.9		)	(17.9		)
Total Product Line Operating Income	$	21.8		$	19.9		$	21.1		$	19.5		$	16.6		$	17.9		$	41.7		$	34.5

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, 2018			Mar 31, 2018			Dec 31, 2017			Sep 30, 2017			Jun 30, 2017			Mar 31, 2017			Jun 30, 2018			Jun 30, 2017
Results of Operations
Earned Premiums	$	43.8		$	43.3		$	41.1		$	42.0		$	39.5		$	39.1		$	87.1		$	78.6
Net Investment Income	1.6			1.5			1.2			1.3			1.4			1.3			3.1			2.7
Other Income	—			0.1			—			0.1			—			0.1			0.1			0.1
Total Revenues	45.4			44.9			42.3			43.4			40.9			40.5			90.3			81.4
Policyholders’ Benefits and Incurred Losses and LAE	24.1			25.2			22.8			22.9			21.8			21.2			49.3			43.0
Insurance Expenses	19.7			19.5			19.2			17.6			17.6			17.3			39.2			34.9
Operating Profit	1.6			0.2			0.3			2.9			1.5			2.0			1.8			3.5
Income Tax Expense	(0.3		)	(0.1		)	(0.1		)	(1.2		)	(0.5		)	(0.7		)	(0.4		)	(1.2		)
Total Product Line Net Operating Income	$	1.3		$	0.1		$	0.2		$	1.7		$	1.0		$	1.3		$	1.4		$	2.3

Page 24

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, 2018			Mar 31, 2018			Dec 31, 2017			Sep 30, 2017			Jun 30, 2017			Mar 31, 2017			Jun 30, 2018			Jun 30, 2017
Results of Operations
Earned Premiums	$	17.8		$	17.6		$	17.8		$	18.2		$	18.4		$	18.2		$	35.4		$	36.6
Net Investment Income	0.5			0.5			0.6			0.5			0.6			0.3			1.0			0.9
Other Income	—			—			—			—			—			—			—			—
Total Revenues	18.3			18.1			18.4			18.7			19.0			18.5			36.4			37.5
Incurred Losses and LAE related to:
Current Year:
Non-catastrophe Losses and LAE	4.5			5.1			4.4			3.9			4.8			4.7			9.6			9.5
Catastrophe Losses and LAE	1.1			0.2			—			3.3			0.8			1.8			1.3			2.6
Prior Years:
Non-catastrophe Losses and LAE	0.1			0.9			—			0.1			0.1			0.2			1.0			0.3
Catastrophe Losses and LAE	—			0.1			(0.2		)	0.2			0.2			0.3			0.1			0.5
Total Incurred Losses and LAE	5.7			6.3			4.2			7.5			5.9			7.0			12.0			12.9
Insurance Expenses	8.5			7.0			8.0			7.9			8.7			8.0			15.5			16.7
Operating Profit	4.1			4.8			6.2			3.3			4.4			3.5			8.9			7.9
Income Tax Expense	(0.8		)	(1.0		)	(2.2		)	(1.0		)	(1.5		)	(1.2		)	(1.8		)	(2.7		)
Total Product Line Net Operating Income	$	3.3		$	3.8		$	4.0		$	2.3		$	2.9		$	2.3		$	7.1		$	5.2
Ratios Based On Earned Premiums
Current Year Non-catastrophe Losses and LAE Ratio	25.2		%	29.0		%	24.7		%	21.5		%	26.2		%	25.9		%	27.1		%	25.9		%
Current Year Catastrophe Losses and LAE Ratio	6.2			1.1			—			18.1			4.3			9.9			3.7			7.1
Prior Years Non-catastrophe Losses and LAE Ratio	0.6			5.1			—			0.5			0.5			1.1			2.8			0.8
Prior Years Catastrophe Losses and LAE Ratio	—			0.6			(1.1		)	1.1			1.1			1.6			0.3			1.4
Total Incurred Loss and LAE Ratio	32.0			35.8			23.6			41.2			32.1			38.5			33.9			35.2
Insurance Expense Ratio	47.8			39.8			44.9			43.4			47.3			44.0			43.8			45.6
Combined Ratio	79.8		%	75.6		%	68.5		%	84.6		%	79.4		%	82.5		%	77.7		%	80.8		%
Underlying Combined Ratio 1
Current Year Non-catastrophe Losses and LAE Ratio	25.2		%	29.0		%	24.7		%	21.5		%	26.2		%	25.9		%	27.1		%	25.9		%
Insurance Expense Ratio	47.8			39.8			44.9			43.4			47.3			44.0			43.8			45.6
Underlying Combined Ratio	73.0		%	68.8		%	69.6		%	64.9		%	73.5		%	69.9		%	70.9		%	71.5		%
Non-GAAP Measure Reconciliation
Underlying Combined Ratio	73.0		%	68.8		%	69.6		%	64.9		%	73.5		%	69.9		%	70.9		%	71.5		%
Current Year Catastrophe Losses and LAE Ratio	6.2			1.1			—			18.1			4.3			9.9			3.7			7.1
Prior Years Non-catastrophe Losses and LAE Ratio	0.6			5.1			—			0.5			0.5			1.1			2.8			0.8
Prior Years Catastrophe Losses and LAE Ratio	—			0.6			(1.1		)	1.1			1.1			1.6			0.3			1.4
Combined Ratio as Reported	79.8		%	75.6		%	68.5		%	84.6		%	79.4		%	82.5		%	77.7		%	80.8		%
1 Underlying Combined Ratio is a non-GAAP measure, which is computed as the difference between three operating ratios: the combined ratio, the effect of catastrophes (excluding development of prior-year catastrophes) on the combined ratio and the effect of prior-year reserve development at the reporting date (including development on prior-year catastrophes) on the combined ratio.

Page 25

Kemper Corporation Insurance Expenses and Interest and Other Expenses (Dollars in Millions)
	Three Months Ended																		Six Months Ended
	Jun 30, 2018			Mar 31, 2018			Dec 31, 2017			Sep 30, 2017			Jun 30, 2017			Mar 31, 2017			Jun 30, 2018			Jun 30, 2017
Insurance Expenses:
Commissions	$	123.1		$	110.3		$	105.1		$	109.6		$	109.0		$	101.9		$	233.4		$	210.9
General Expenses	42.9			45.7			46.0			50.2			48.3			49.6			88.6			97.9
Taxes, Licenses and Fees	16.1			14.5			12.4			13.8			13.4			13.2			30.6			26.6
Total Costs Incurred	182.1			170.5			163.5			173.6			170.7			164.7			352.6			335.4
Policy Acquisition Costs:
Deferred	(106.1		)	(96.5		)	(89.3		)	(91.6		)	(87.2		)	(83.5		)	(202.6		)	(170.7		)
Amortized	93.7			85.8			83.7			80.4			78.6			75.6			179.5			154.2
Net Policy Acquisition Costs Deferred	(12.4		)	(10.7		)	(5.6		)	(11.2		)	(8.6		)	(7.9		)	(23.1		)	(16.5		)
Amortization of Insurance in Force	1.5			0.3			1.2			1.3			1.4			1.2			1.8			2.6
Insurance Expenses	171.2			160.1			159.1			163.7			163.5			158.0			331.3			321.5
Interest and Other Expenses:
Interest Expense	8.0			7.9			8.0			7.8			8.3			10.8			15.9			19.1
Other Expenses:
Loss on Cash Flow Hedge	—			0.2			—			—			1.1			—			0.2			1.1
Acquisition Related Transaction and Integration Costs	3.6			6.2			—			—			—			—			9.8			—
Other	14.1			14.7			13.5			10.4			12.0			8.7			28.8			20.7
Other Expenses	17.7			21.1			13.5			10.4			13.1			8.7			38.8			21.8
Interest and Other Expenses	25.7			29.0			21.5			18.2			21.4			19.5			54.7			40.9
Total Expenses	$	196.9		$	189.1		$	180.6		$	181.9		$	184.9		$	177.5		$	386.0		$	362.4

Page 26

Kemper Corporation Details of Investment Performance (Dollars in Millions)
	Three Months Ended																		Six Months Ended
	Jun 30, 2018			Mar 31, 2018			Dec 31, 2017			Sep 30, 2017			Jun 30, 2017			Mar 31, 2017			Jun 30, 2018			Jun 30, 2017
Net Investment Income
Interest on Fixed Income Securities	$	64.4		$	62.4		$	62.6		$	61.8		$	62.1		$	60.1		$	126.8		$	122.2
Dividends on Equity Securities Excluding Alternative Investments	2.6			1.9			2.3			2.6			2.3			2.1			4.5			4.4
Alternative Investments:
Equity Method Limited Liability Investments	1.4			7.1			2.9			11.1			4.0			6.8			8.5			10.8
Fair Value Option Investments	—			—			0.3			0.5			(0.6		)	1.1			—			0.5
Limited Liability Investments Included in Equity Securities	5.2			3.9			9.9			5.9			5.4			7.4			9.1			12.8
Total Alternative Investments	6.6			11.0			13.1			17.5			8.8			15.3			17.6			24.1
Short-term Investments	1.2			0.8			0.6			0.5			0.2			0.3			2.0			0.5
Real Estate	2.4			2.4			2.4			2.6			2.8			2.9			4.8			5.7
Loans to Policyholders	5.5			5.5			5.9			4.9			5.3			5.5			11.0			10.8
Other	0.4			—			0.3			0.1			0.1			—			0.4			0.1
Total Investment Income	83.1			84.0			87.2			90.0			81.6			86.2			167.1			167.8
Investment Expenses:
Real Estate	2.6			2.3			2.8			2.6			2.5			2.6			4.9			5.1
Other Investment Expenses	2.1			2.5			1.8			1.5			2.0			2.0			4.6			4.0
Total Investment Expenses	4.7			4.8			4.6			4.1			4.5			4.6			9.5			9.1
Net Investment Income	$	78.4		$	79.2		$	82.6		$	85.9		$	77.1		$	81.6		$	157.6		$	158.7
Net Realized Gains on Sales of Investments
Fixed Maturities:
Gains on Sales	$	1.2		$	4.1		$	1.1		$	2.4		$	3.5		$	1.4		$	5.3		$	4.9
Losses on Sales	(1.9		)	(2.1		)	(0.5		)	—			(0.2		)	(0.2		)	(4.0		)	(0.4		)
Equity Securities:
Gains on Sales	4.6			0.6			10.9			3.9			18.3			8.9			5.2			27.2
Losses on Sales	—			—			—			—			—			—			—			—
Real Estate:
Gains on Sales	—			—			—			1.6			4.7			0.1			—			4.8
Other Investments:
Gains on Sales	—			—			0.1			—			—			—			—			—
Losses on Sales	(0.1		)	—			—			—			(0.1		)	—			(0.1		)	(0.1		)
Trading Securities Net Gains (Losses)	—			—			(0.1		)	0.2			0.2			0.3			—			0.5
Net Realized Gains on Sales of Investments	$	3.8		$	2.6		$	11.5		$	8.1		$	26.4		$	10.5		$	6.4		$	36.9
Net Impairment Losses Recognized in Earnings
Fixed Maturities	$	—		$	(0.3	)	$	(2.3	)	$	(2.9	)	$	(2.2	)	$	(4.7	)	$	(0.3	)	$	(6.9	)
Equity Securities	—			(0.2		)	(1.5		)	—			(0.4		)	(0.3		)	(0.2		)	(0.7		)
Net Impairment Losses Recognized in Earnings	$	—		$	(0.5	)	$	(3.8	)	$	(2.9	)	$	(2.6	)	$	(5.0	)	$	(0.5	)	$	(7.6	)

Page 27

Kemper Corporation Details of Invested Assets (Dollars in Millions) (Unaudited)
	Jun 30, 2018				Dec 31, 2017				Dec 31, 2016
	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	$	649.4	9.9	%	$	556.1	8.2	%	$	336.3	5.1	%
States and Political Subdivisions	1,532.4		23.3		1,701.8		25.0		1,714.9		26.0
Foreign Governments	4.3		0.1		3.2		—		3.4		0.1
Corporate Securities:
Bonds and Notes	2,839.4		43.1		2,980.6		43.8		2,944.8		44.6
Redeemable Preferred Stocks	—		—		0.1		—		0.6		—
Collaterized Loan Obligations	229.2		3.5		139.8		2.1		122.8		1.9
Other Mortgage- and Asset-backed	5.6		0.1		1.1		—		2.1		—
Total Fixed Maturities Reported at Fair Value	5,260.3		79.9		5,382.7		79.1		5,124.9		77.7
Equity Securities Reported at Fair Value:
Preferred Stocks	56.5		0.9		78.8		1.2		82.5		1.2
Common Stocks	9.7		0.1		24.8		0.4		45.2		0.7
Other Equity Interests:
Exchange Traded Funds	219.5		3.3		219.5		3.2		151.1		2.3
Limited Liability Companies and Limited Partnerships	229.2		3.5		202.9		3.0		202.9		3.1
Total Equity Securities Reported at Fair Value	514.9		7.8		526.0		7.7		481.7		7.3
Equity Securities Reported at Modified Cost:
Preferred Stocks	12.2		0.2		—		—		—		—
Common Stocks	10.8		0.2		—		—		—		—
Limited Liability Companies and Limited Partnerships	31.1		0.5		—		—		—		—
Total Equity Securities Reported at Modified Cost	54.1		0.9		—		—		—		—
Equity Method Limited Liability Investments	170.9		2.6		161.0		2.4		175.9		2.7
Fair Value Option Investments	—		—		77.5		1.1		111.4		1.7
Short-term Investments at Cost which Approximates Fair Value	169.0		2.6		235.5		3.5		273.7		4.1
Other Investments:
Loans to Policyholders at Unpaid Principal	296.5		4.5		298.6		4.4		294.2		4.5
Real Estate at Depreciated Cost	115.2		1.8		116.8		1.7		140.2		2.1
Trading Securities at Fair Value	—		—		6.7		0.1		5.3		0.1
Other	—		—		0.1		—		0.2		—
Total Other Investments	411.7		6.3		422.2		6.2		439.9		6.7
Total Investments	$	6,580.9	100.0	%	$	6,804.9	100.0	%	$	6,607.5	100.0	%
1 Sum of percentages for individual lines may not equal subtotals and grand total due to rounding.

Page 28

Kemper Corporation Details of Invested Assets (continued) (Dollars in Millions) (Unaudited)
	Jun 30, 2018				Dec 31, 2017				Dec 31, 2016
	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	$	3,343.6	63.6	%	$	3,481.8	64.7	%	$	3,280.4	64.0	%
BBB	1,388.5		26.4		1,335.2		24.8		1,338.2		26.1
BB, B	340.2		6.5		357.2		6.6		321.6		6.3
CCC or Lower	188.0		3.6		208.5		3.9		184.7		3.6
Total Investments in Fixed Maturities	$	5,260.3	100.0	%	$	5,382.7	100.0	%	$	5,124.9	100.0	%
Duration (in Years)
Total Investments in Fixed Maturities	6.1				6.2				6.3
1 Sum of percentages for individual lines may not equal subtotals and grand total due to rounding.

Page 29

Kemper Corporation Investment Concentration (Dollars in Millions) (Unaudited)
	Jun 30, 2018				Dec 31, 2017				Dec 31, 2016
Fair Value of Non-governmental Fixed Maturities by Industry	Amount		Percent of Total Investments		Amount		Percent of Total Investments		Amount		Percent of Total Investments
Manufacturing	$	1,068.7	16.2	%	$	1,168.8	17.2	%	$	1,227.8	18.6	%
Finance, Insurance and Real Estate	853.3		13.0		780.2		11.5		742.6		11.2
Services	448.5		6.8		453.3		6.7		391.6		5.9
Transportation, Communication and Utilities	337.8		5.1		353.7		5.2		364.1		5.5
Mining	148.8		2.3		163.5		2.4		157.2		2.4
Retail Trade	123.3		1.9		102.6		1.5		101.9		1.5
Wholesale Trade	75.8		1.2		81.3		1.2		69.2		1.0
Agriculture, Forestry and Fishing	13.9		0.2		14.5		0.2		14.4		0.2
Other	4.1		0.1		3.7		0.1		1.5		—
Total Fair Value of Non-governmental Fixed Maturities	$	3,074.2	46.8	%	$	3,121.6	46.0	%	$	3,070.3	46.3	%

	Jun 30, 2018
Ten Largest Investment Exposures 1	Fair Value		Percent of Total Investments
Fixed Maturities:
States including their Political Subdivisions:
Texas	$	111.7	1.7	%
Georgia	83.7		1.3
Michigan	81.1		1.2
Colorado	76.4		1.2
Louisiana	68.7		1.0
Virginia	62.6		1.0
Washington	57.2		0.9
New York	54.3		0.8
Massachusetts	48.7		0.7
Ohio	46.7		0.7
Total	$	691.1	10.5	%

¹  Excluding Investments in U.S. Government and Government Agencies and Authorities and Obligations of States and Political Subdivisions pre-refunded with U.S. government and government agencies obligations held in Trust at June 30, 2018.

Page 30

Kemper Corporation Municipal Bond Securities (Dollars in Millions) (Unaudited)
	Jun 30, 2018
	State General Obligation		Political Subdivision General Obligation		Revenue		Total Fair Value		Percent of Total Muni Bond1		Percent of Total Investments1
Texas	$	23.4	$	18.0	$	70.3	$	111.7	7.3	%	1.7	%
Georgia	48.6		8.0		27.1		83.7		5.5		1.3
Michigan	37.4		—		43.7		81.1		5.3		1.2
Colorado	—		14.7		61.7		76.4		5.0		1.2
Louisiana	43.7		6.9		18.1		68.7		4.5		1.0
Virginia	25.2		18.9		18.5		62.6		4.1		1.0
Washington	14.5		0.3		42.4		57.2		3.7		0.9
New York	6.2		2.6		45.5		54.3		3.5		0.8
Massachusetts	2.6		1.5		44.6		48.7		3.2		0.7
Ohio	5.9		—		40.8		46.7		3.0		0.7
California	7.0		—		38.9		45.9		3.0		0.7
Florida	28.4		—		13.7		42.1		2.7		0.6
Oregon	36.2		—		3.4		39.6		2.6		0.6
Wisconsin	24.7		6.9		6.3		37.9		2.5		0.6
Indiana	1.4		—		34.9		36.3		2.4		0.6
Pennsylvania	11.1		2.5		21.4		35.0		2.3		0.5
Maryland	7.9		15.4		6.1		29.4		1.9		0.4
Minnesota	—		0.4		28.3		28.7		1.9		0.4
Nevada	27.4		1.1		—		28.5		1.9		0.4
North Carolina	0.9		2.5		24.2		27.6		1.8		0.4
South Carolina	18.4		2.9		5.4		26.7		1.7		0.4
New Mexico	—		—		26.1		26.1		1.7		0.4
Arkansas	25.9		—		—		25.9		1.7		0.4
New Jersey	—		5.1		20.3		25.4		1.7		0.4
Illinois	—		—		23.6		23.6		1.5		0.4
Connecticut	23.1		—		—		23.1		1.5		0.4
District Of Columbia	—		4.8		17.3		22.1		1.4		0.3
Arizona	—		0.8		20.7		21.5		1.4		0.3
Iowa	—		—		21.4		21.4		1.4		0.3
Utah	0.7		—		20.3		21.0		1.4		0.3
Missouri	—		—		20.4		20.4		1.3		0.3
Rhode Island	4.8		—		15.6		20.4		1.3		0.3
Delaware	10.7		—		9.5		20.2		1.3		0.3
Hawaii	20.0		—		—		20.0		1.3		0.3
Tennessee	7.6		7.4		4.6		19.6		1.3		0.3
Alaska	1.8		2.9		14.6		19.3		1.3		0.3
Nebraska	—		7.2		11.7		18.9		1.2		0.3
Mississippi	16.1		—		0.5		16.6		1.1		0.3
Kentucky	—		—		15.9		15.9		1.0		0.2
All Other States	8.2		2.2		71.8		82.2		5.4		1.2
Total	$	489.8	$	133.0	$	909.6	$	1,532.4	100.0	%	23.3	%
1 Sum of percentages for individual lines may not equal total due to rounding.

Page 31

Kemper Corporation Investments in Limited Liability Companies and Limited Partnerships (Dollars in Millions) (Unaudited)
	Unfunded Commitment		Reported Value
Asset Class	Jun 30, 2018		Jun 30, 2018		Dec 31, 2017
Reported as Equity Method Limited Liability Investments at Cost Plus Cumulative Undistributed Earnings:
Mezzanine Debt	$	57.4	$	82.6	$	73.0
Senior Debt	21.3		7.0		4.8
Distressed Debt	—		43.0		47.5
Secondary Transactions	18.8		20.9		20.6
Leveraged Buyout	—		4.1		3.3
Growth Equity	—		5.4		5.7
Other	—		7.9		6.1
Total Equity Method Limited Liability Investments	97.5		170.9		161.0
Reported as Other Equity Interests at Fair Value:
Mezzanine Debt	85.8		107.6		102.2
Senior Debt	32.4		33.0		35.5
Distressed Debt	3.4		16.3		16.6
Secondary Transactions	10.4		8.1		8.9
Hedge Funds	—		55.3		—
Leveraged Buyout	3.1		5.4		6.3
Real Estate	—		—		—
Other	8.1		3.4		33.4
Total Reported as Other Equity Interests at Fair Value	143.2		229.1		202.9
Reported as Other Equity Interests at Modified Cost:
Mezzanine Debt	—		1.5		—
Other	0.1		29.5		—
Total Reported as Other Equity Interests at Modified Cost	0.1		31.0		—
Reported as Fair Value Option Investments:
Hedge Funds	—		—		77.5
Total Investments in Limited Liability Companies and Limited Partnerships	$	240.8	$	431.0	$	441.4

Page 32

Kemper Corporation

Definitions of Non-GAAP Financial Measures

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

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

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

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

1) Net Realized Gains on Sales of Investments;

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

3) Income (Loss) from Change in Fair Value of Equity Securities;

4) Acquisition Related Transaction and Integration Costs;

5) Loss from Early Extinguishment of Debt; and

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

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

The Company believes that Adjusted Consolidated Net Operating Income (Loss) provides investors with a valuable measure of its ongoing performance because it reveals underlying operational performance trends that otherwise might be less apparent if the items were not excluded. Net Realized Gains on Sales of Investments, Net Impairment Losses Recognized in Earnings related to investments, and Income (Loss) from Change in Fair Value of Equity Securities 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. Loss from Early Extinguishment of Debt is driven by the Company’s financing and refinancing decisions and capital needs, as well as, external economic developments such as debt market conditions, the timing of which is unrelated to the insurance underwriting process. Significant non-recurring items are excluded because, by their nature, they are not indicative of the Company’s business or economic trends.

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Kemper Corporation

Definitions of Non-GAAP Financial Measures (continued)

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

	Three Months Ended															Six Months Ended
Dollars in Millions (Unaudited)	Jun 30, 2018			Mar 31, 2018			Dec 31, 2017			Sep 30, 2017			Jun 30, 2017			Jun 30, 2018			Jun 30, 2017
Adjusted Consolidated Net Operating Income (Loss)	$	36.5		$	57.5		$	31.0		$	44.4		$	21.0		$	94.0		$	17.1
Net Income (Loss) From:
Income from Change in Fair Value of Equity Securities	0.3			0.6			—			—			—			0.9			—
Net Realized Gains on Sales of Investments	3.0			2.1			7.4			5.3			17.2			5.1			24.0
Net Impairment Losses Recognized in Earnings	—			(0.4		)	(2.5		)	(1.9		)	(1.6		)	(0.4		)	(4.9		)
Acquisition Related Transaction and Integration Costs	(2.3		)	(6.2		)	—			—			—			(8.5		)	—
Income (Loss) from Continuing Operations	$	37.5		$	53.6		$	35.9		$	47.8		$	36.6		$	91.1		$	36.2

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

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

	Three Months Ended															Six Months Ended
(Unaudited)	Jun 30, 2018			Mar 31, 2018			Dec 31, 2017			Sep 30, 2017			Jun 30, 2017			Jun 30, 2018			Jun 30, 2017
Adjusted Consolidated Net Operating Income (Loss) Per Unrestricted Share	$	0.70		$	1.11		$	0.60		$	0.85		$	0.41		$	1.81		$	0.34
Net Income (Loss) Per Unrestricted Share From:
Income from Change in Fair Value of Equity Securities	0.01			0.01			—			—			—			0.02			—
Net Realized Gains on Sales of Investments	0.06			0.04			0.14			0.10			0.33			0.10			0.46
Net Impairment Losses Recognized in Earnings	—			(0.01		)	(0.05		)	(0.03		)	(0.03		)	(0.01		)	(0.10		)
Acquisition Related Transaction and Integration Costs	(0.04		)	(0.12		)	—			—			—			(0.16		)	—
Income (Loss) from Continuing Operations Per Unrestricted Share	$	0.73		$	1.03		$	0.69		$	0.92		$	0.71		$	1.76		$	0.70

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

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EX-99.3

Second Quarter  2018 Earnings  July 30, 2018

Preliminary Matters Cautionary Statements Regarding Forward‐Looking Information This presentation 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. Forward‐looking statements give expectations or forecasts of future events, and can be identified by  the fact that they relate to future actions, performance or results rather than strictly to historical or current facts.  Any or all forward‐looking statements may turn out to be wrong, and, accordingly, readers are cautioned not to  place undue reliance on such statements, which speak only as of the date of this presentation. Forward‐looking  statements involve a number of risks and uncertainties that are difficult to predict, and are not guarantees of  future performance. Among the general factors that could cause actual results and financial condition to differ  materially from estimated results and financial condition are those listed in periodic reports filed by Kemper  Corporation with the Securities and Exchange Commission (SEC). No assurances can be given that the results and  financial condition contemplated in any forward‐looking statements will be achieved or will be achieved in any  particular timetable. 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 presentation. The reader is advised,  however, to consult any further disclosures Kemper makes on related subjects in its filings with the SEC. Non‐GAAP Financial Measures This presentation contains non‐GAAP financial measures that the company believes are meaningful to investors.  Non‐GAAP financial measures have been reconciled to the most comparable GAAP financial measure. Earnings Call Presentation –2Q 2018 2

Kemper Is a Leading Multi‐Line Insurer • Multi‐line national insurance company Key Metrics –Post Infinity Acquisition –Provide specialty auto and preferred personal  insurance (auto, home & umbrella) Market Cap (7/26/18) $4.9 Billion –Provide basic life, accident & health products Debt‐to‐Capital Ratio ~27% – Founded in 1990 and headquartered in Chicago,  A.M. Best Ratings (Kemper/Infinity)1 A‐/A with subsidiaries writing policies since 1911 Excess Capital  >$100 MM • Multi‐channel distribution network Employees >7,800 – 2,200 career agents In‐force policies ~7MM – Approximately 30,000 independent agents • Strong balance sheet – Insurance subsidiaries highly rated¹ by A.M. Best 2017 Pro Forma2 Business Mix – ~90% of Kemper’s fixed maturity portfolio is  investment grade • Successful execution by proven leadership  Preferred,  20% team L&H, 16% –Kemper results have exceeded analysts’ expectations  Specialty  for last 9 quarters Auto, 64% –Kemper closed acquisition of Infinity P&C in  July 2018 2017 Earned Premium: $3.7bn ¹ Alliance United is not rated Earnings Call Presentation –2Q 2018 2 Pro forma for the acquisition of Infinity 3

Create Long‐Term Shareholder Value Diversified sources  of earnings; Sustainable competitive Growing returns Strong capital/liquidity advantages and build  and book value per positions; core capabilities share over time Disciplined approach to capital mgmt Strategic focus: Consumer‐related businesses with opportunities that:  • Target niche markets • Have limited, weak or unfocused competition • Require unique expertise (underwriting, claim, distribution, other) Deliver low double‐digit ROE¹ over time 1 Return on Equity Earnings Call Presentation –2Q 2018 4

Second Quarter 2018 Highlights • Net Income increased from $36.6 million to $37.6 million resulting in EPS of $0.71 and $0.73,  respectively 2Q18  • Adj Consolidated Net Operating EPS increased from $0.41 to $0.70 vs  • Earned Premiums increased $76 million, or 13 percent; improvements continue to be driven by  2Q17 policies‐in‐force growth in the Nonstandard Auto business • Nonstandard Auto increased earned premium by 32 percent and policies in force by 29 percent  Operating  while improving the Underlying Combined Ratio by 2.0 percentage points Results • Life & Health net operating income increased $6 million • Net Investment Income of $78 million continues to provide a consistent income stream • Ample liquidity at holding company post Infinity acquisition ‐ Approximately $500 million of available and contingent liquidity Balance Sheet ‐ More than $100 million of excess capital ‐ Debt‐to‐capital ratio of approximately 27 percent • Amended and extended credit agreement on June 8, 2018 ‐ Increased revolver capacity to $300 million Other • Closed acquisition of Infinity P&C on July 2, 2018 • Teresa A. Canida elected to Board of Directors effective upon Infinity close Earnings Call Presentation –2Q 2018 5

Second Quarter & YTD 2018 Highlights – Strong Results Three Months Ended Six Months Ended (Dollars in millions, except per share amounts) Jun. 30, Jun. 30, Variance Jun. 30, Jun. 30, Variance 2018 2017 2018 2017 Net Income$           37.6 $          36.6 $            1.0 $          91.4 $          36.3 $          55.1 Net Income Per Share ‐ Diluted$           0.73 $          0.71 $          0.02 $          1.76 $          0.70 $          1.06 Adj. Consolidated Net Operating Income Per Share ‐ Diluted¹ $         0.70 $          0.41 $         0.29 $         1.80 $         0.34 $         1.46 Earned Premiums$         658.1 $        582.5 $          75.6 $    1,267.9 $    1,145.9 $        122.0 Net Investment Income             78.4             77.1                1.3           157.6           158.7              (1.1) Net Realized Gains & Other Income                5.4             24.8            (19.4)                9.4             31.2            (21.8) Total Revenues$         741.9 $        684.4 $          57.5 $    1,434.9 $    1,335.8 $          99.1 Book Value Per Share$         39.68 $        39.64 $          0.04 $        39.68 $        39.64 $          0.04 Book Value Per Share Excluding Net Unrealized Gains on Fixed  Maturities¹ $        36.85 $        35.13 $          1.72 $        36.85 $        35.13 $          1.72 P&C Policies In Force (in thousands)           1,365           1,197               168           1,365           1,197               168 P&C Underlying Loss & LAE Ratio 70.9% 72.1%  (1.2%) 71.3% 72.9%  (1.6%) P&C Expense Ratio 21.1% 22.1%  (1.0%) 21.7% 22.6%  (0.9%) Life Policies In Force (in thousands)           3,581           3,660               (79)           3,581           3,660               (79) Life Face Value of In‐Force (in millions)$      19,412 $     19,848 $          (436) $     19,412 $     19,848 $          (436) Solid 2Q18 results led by strong performance in Nonstandard Auto ¹ Non‐GAAP financial measure; Please see reconciliation in the appendix Earnings Call Presentation –2Q 2018 6

Improving Underlying Operating Performance Three Months Ended Dollars per Unrestricted Share ‐ Diluted Jun. 30, Mar. 31, Dec. 31, Sep. 30, Jun. 30, Variance 2018 2018 2017 2017 2017 QoQ Income from Continuing Operations$           0.73 $          1.02 $          0.69 $          0.92 $          0.71             0.02 Investment Related (Gains)/Losses1          (0.07)          (0.04)           (0.09)          (0.07)          (0.30)           0.23 Acquisition Related Transaction and Integration Costs             0.04             0.12                ‐                ‐                ‐             0.04 Adj. Consolidated Net Operating Income¹            0.70            1.10             0.60            0.85            0.41            0.29 Sources of Volatility: Catastrophes             0.66             0.12             0.64             0.41             0.44             0.22 Prior‐year Reserve Development             0.05            (0.02)             0.01             0.01             0.10            (0.05) Alternative Investment Income          (0.10)          (0.17)           (0.16)          (0.21)          (0.12)           0.02 Tax Reform               ‐                ‐            (0.14)                ‐                ‐                ‐ Total from Sources of Volatility$           0.61 $        (0.07) $          0.35 $          0.21 $          0.42 $          0.19 Underlying Operating Performance2 $         1.31 $         1.03 $         0.95 $         1.06 $         0.83 $         0.48 Accelerated growth of underlying operating performance; Up 58 percent compared to 2Q17 ¹ Includes Income from change in fair value of equity securities, net  realized gains on sales of investments and net impairment losses  Earnings Call Presentation –2Q 2018 recognized in earnings 7 2Non‐GAAP financial measure; see reconciliation in the appendix

Stable Life & Health Earnings  Revenues1 (MM) Revenues $208 $211 $211 $208 $211 • Earned premiums grew at a modest pace,  $55  $56  $58  $53  $54  driven by an 11 percent increase in A&H • Portfolio composition led to continued  stable investment income; a 5.5 percent to  $153  $155  $153  $155  $157  5.1 percent decrease in yield was offset by  3 percent increase in the portfolio size 2Q17 3Q17 4Q17 1Q18 2Q18 Earned Premiums Net Investment Income Net Operating Income Net Operating Income (MM) • L&H continues to provide stable and  diversified cash flows  • Both the Life and the A&H businesses  produced higher operating profits  $26  $24  $25  $24  compared to 2Q17 due to lower income  $21  tax rates, lower net commissions and  higher earned premiums 2Q17 3Q17 4Q17 1Q18 2Q18 ¹ Excludes other income Earnings Call Presentation –2Q 2018 8

Profitably Growing Nonstandard Auto Earned Premiums Revenues • Direct written premiums grew $88 million  or 37 percent; Access accounted for  roughly $30 million;  results highlight our  $308  strong NSA market positioning   $234  $247  $258  $266  • 2Q18 to 2Q17, earned premiums  increased $74 million, or 32 percent,  driven primarily by a 29 percent increase  2Q17 3Q17 4Q17 1Q18 2Q18 in volume; Access accounted for  approximately $20 million (%)Underlying Combined (MM)  Ratio¹ Underwriting Results • Underlying combined ratio improved 2.0  percentage points in 2Q18 compared to  2Q17, driven by rate actions, scale  benefits and moderating market loss  94.5  92.5  trends 91.3  95.4  93.2  • Underwriting margin exceeded target  profitability ranges; focusing on continued  2Q17 3Q17 4Q17 1Q18 2Q18 profitable growth ¹ Non‐GAAP financial measure; see reconciliation in the appendix. Strong Nonstandard Auto franchise continuing to demonstrate profitable growth  Earnings Call Presentation –2Q 2018 9

Preferred Lines Showing Improvement Earned Premiums by Line Preferred Auto (MM) $184 $181 $185 $183 $177 • Underlying combined ratio improved 4.9 $11  $11  $11  $10  $10  percentage points over 2Q17 due to  $67  $67  $65  $62  $62  increased rate and moderating market loss  trends $106  $107  $107  $105  $109  • Underwriting results are below target  profitability objectives 2Q17 3Q17 4Q17 1Q18 2Q18 • Focusing on improving profitability through  Auto Home Other claims, rate and underwriting actions Homeowners (%) Underlying Combined Ratio¹ 104.3  103.1  99.3  100.3  98.2  • Underlying combined ratio increased by 2.0 percentage points primarily as a result of the  88.1  79.6  85.8  81.6  aggregate catastrophe treaty 69.0  • Financial results are below target margins • Continued focus on profitability with claims,  rate and underwriting actions • Results include, one‐time TWIA assessment  2Q17 3Q17 4Q17 1Q18 2Q18 related to Hurricane Harvey contributing  approximately 3 percentage points to  Auto Home Total Preferred Lines elevated Q2 expense ratio Continued progress on improving underlying profitability in Auto ¹Non‐GAAP financial measure; Please see reconciliation in the appendix Earnings Call Presentation –2Q 2018 10

Consistent Portfolio Returns: High Quality, Moderate Risk  Strong Investment Income Despite Low Rates Overview • Investment portfolio produced a pre‐tax  $77$86 $83 $79 $78 equivalent annualized book yield of 5.0  (MM) $18  percent in 2Q18 compared to 5.2 percent  $9  $13  $11  $7  in 2Q17 • After‐tax yield increased from 3.4 percent  $68  $68  $70  $68  $71  to 3.9 percent due primarily to the tax law  change. This resulted in an increase of  $10.5 million after‐tax net income  2Q17 3Q17 4Q17 1Q18 2Q18 • Alternative investment portfolio, which is  Alternative Investments Portfolio Core Portfolio designed to provide enhanced returns over  time, produced investment income of $7  Diversified & Highly‐Rated Portfolio million in 2Q18 Portfolio Composition Fixed Maturity Ratings • Core portfolio continues to provide  Other ≤ CCC consistent and predictable cash flows; $3  Short‐term Corporates B / BB 3% 6% 4% million increase was driven by higher  Alternatives¹ 7% 7% investment base generated by growth in  Equity¹  5% the Life and Specialty books 47% U.S.  26% 64% • More than 80 percent of the total  Gov’t 10% BBB A or Higher investment portfolio remains comprised of  fixed maturity and short‐term securities, of  States/ 23% Munis which 90 percent is rated investment grade $6.6 Billion $5.3 Billion 1 Equity Securities excludes $260 million of Other Equity Interests of  LP/LLC’s that have been reclassified into Alternative Investments Earnings Call Presentation –2Q 2018 11

Strong Current Capital Position with Ample Liquidity Strong Parent Company Liquidity Risk‐Based Capital Ratios (%) Life & Health Legacy P&C¹ (MM) $1,059 $734 $741 $350  $684 $582 $494 $404  $400  $385  415 335 430 $385  $709  330 310 $350  375 290 360 $330  $341  $299  $197  $144  2014 2015 2016 2017 2Q181 Today Borrowings available under credit agreement & from subs 2015 2016 2017 2018E HoldCo Cash & Investments ¹Excludes Alliance United Cash Flow from Operating Activities  Debt‐to‐Capital Historically <30% 31.8% 27.4% 27.6% (MM) 26.5% ~ 27% Debt 21.9% $241  $241  $215  $202  $122  $134  2014 2015 2016 2017 2Q18 Today 2013 2014 2015 2016 2017 6M18 Total  Capitalization $2.8B $2.7B $2.7B $2.7B $3.0B ~ $4.1B Capital position and liquidity resources provide significant financial flexibility 1 Holdco cash resulted from pre‐funding $564.6 million of cash for the  Infinity acquisition Earnings Call Presentation –2Q 2018 12

Acquisition of Infinity Consummation of Transaction • Acquisition of Infinity ‐ July 2, 2018, completed acquisition of Infinity o Issued 13.2 million shares of Kemper Stock o Paid $564.6 million in cash consideration, partially funded by  . $250 million 2‐year term loan . $110 million of FHLB borrowings; repaid in full on July 13, 2018 Transaction Economics Announcement Date February 13, 2018 Aggregate Purchase Price Announced (based on 20‐Day VWAP of $64.40 per share) $1.4 billion Closing Date July 2, 2018 Consideration Paid Cash $0.6 billion Stock (based on $74.525 per share) $1.0 billion Total Consideration Paid $1.6 billion Transaction closed on July 2, 2018; is not included in Kemper 2Q18 results Earnings Call Presentation –2Q 2018 13

Infinity 2Q 2018 Performance –Not Included in Kemper’s 2Q18 Results Earned Premiums Revenues • Earned premiums increased 10 percent  over the 2Q17, driven by: ‐ 5 percent growth of policy‐in‐force $339  $345  $346  $354  $374  ‐ Higher average premiums  • Written premium increased in all states as  well as in Commercial Auto 2Q17 3Q17 4Q17 1Q18 2Q18 (%)GAAP Combined (MM)  Ratio Underwriting Results • Combined ratio improved by 8.1  percentage points over 2Q17 driven by:  ‐ Improving loss cost trends in CA & FL ‐ Higher average premiums as rate  99.4  94.6  90.0  92.6  91.3  increases earned in • 2Q17 artificially high by 3.6 percentage  points as a result of premium refunds to  2Q17 3Q17 4Q17 1Q18 2Q18 CA policyholders Infinity’s strong performance validates our thesis for the acquisition Earnings Call Presentation –2Q 2018 14

Appendix

Non‐GAAP Financial Measures Underlying Operating Performance is a non‐GAAP financial measure that is computed by excluding from the Diluted Income (Loss)  from Continuing Operations Per Unrestricted Share the after‐tax per unrestricted share impact of  1) income (loss) from change in  fair value of equity securities, 2) net realized gains on sales of investments, 3) net impairment losses recognized in earnings related  to investments, 4) acquisition related transaction and integration costs, 5) loss from early extinguishment of debt, and 6) significant  non‐recurring or infrequent items that may not be indicative of ongoing operations. The most directly comparable GAAP financial  measure is Diluted Income (Loss) from Continuing Operations Per Unrestricted Share. Kemper believes Underlying Operating Performance provides investors with a valuable measure of its ongoing performance because  it reveals underlying operational trends that otherwise might be less apparent if the items were not excluded. Underlying Operating  Performance should not be considered a substitute for the Diluted Income (Loss) from Continuing Operations Per Unrestricted Share  and does not reflect the overall profitability of our business. Book Value Per Share Excluding Net Unrealized Gains on Fixed Maturities, is a ratio that uses a non‐GAAP financial measure. It is  calculated by dividing shareholders’ equity after excluding the after‐tax impact of net unrealized gains on fixed income securities by  total Common Shares Issued and Outstanding. Book value per share is the most directly comparable GAAP financial measure. The  Company uses the trend in book value per share, excluding the after‐tax impact of net unrealized gains on fixed income securities in  conjunction with book value per share to identify and analyze the change in net worth attributable to management efforts between periods. The Company believes the non‐GAAP financial measure is useful to investors because it eliminates the effect of items that  can fluctuate significantly from period to period and are generally driven by economic developments, primarily capital market conditions, the magnitude and timing of which are generally not influenced by management. The Company believes it enhances  understanding and comparability of performance by highlighting underlying business activity and profitability drivers. For the Periods Ended Jun. 30, 2018 Jun. 30, 2017 Book Value Per Share$          39.68 $         39.64 Less: Net Unrealized Gains on Fixed Maturities Per Share              (2.83)              (4.51) Book Value Per Share Excluding Net Unrealized Gains on Fixed  Maturities $          36.85 $          35.13 Earnings Call Presentation –2Q 2018 17

Non‐GAAP Financial Measures Adjusted Consolidated Net Operating Income (Loss) is an after‐tax, non‐GAAP financial measure computed by excluding from  Income (Loss) from Continuing Operations the after‐tax impact of 1) income (loss) from change in fair value of equity securities, 2)  net realized gains on sales of investments, 3) net impairment losses recognized in earnings related to investments, 4) acquisition  related transaction and integration costs, 5) loss from early extinguishment of debt and 6) significant non‐recurring or infrequent  items that may not be indicative of ongoing operations. Significant non‐recurring items are excluded when (a) the nature of the  charge or gain is such that it is reasonably unlikely to recur within two years and (b) there has been no similar charge or gain within  the prior two years. The most directly comparable GAAP financial measure is Income (Loss) from Continuing Operations. Kemper believes that Adjusted Consolidated Net Operating Income (Loss) provides investors with a valuable measure of its ongoing performance because it reveals underlying operational performance trends that otherwise might be less apparent if the items were not excluded. Income (loss) from change in fair value of equity securities, net realized gains on sales of investments and net  impairment losses recognized in earnings related to investments included in the Company’s results may vary significantly between periods and are generally driven by business decisions and external economic developments such as capital market conditions that impact the values of the Company’s investments, the timing of which is unrelated to the insurance underwriting process. Loss from  early extinguishment of debt is driven by the Company’s financing and refinancing decisions and capital needs, as well as external  economic developments such as debt market conditions, the timing of which is unrelated to the insurance underwriting process. 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. Significant non‐recurring items are  excluded because, by their nature, they are not indicative of the Company’s business or economic trends. Earnings Call Presentation –2Q 2018 18

Non‐GAAP Financial Measures Diluted Adjusted Consolidated Net Operating Income (Loss) Per Unrestricted Share is a non‐GAAP financial measure computed by  dividing Adjusted Consolidated Net Operating Income (Loss) attributed to unrestricted shares by the weighted‐average unrestricted  shares and equivalent shares outstanding. The most directly comparable GAAP financial measure is Diluted Income (Loss) from  Continuing Operations Per Unrestricted Share. Kemper believes that Diluted Adjusted Consolidated Net Operating Income (Loss) Per Unrestricted Share 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 from change in fair value of equity securities, net realized gains on sales of  investments and net impairment losses recognized in earnings related to investments included in Kemper’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. For the Three Months Ended Per Unrestricted Share 2Q18 1Q18 4Q17 3Q17 2Q17 Adj. Consolidated Net Operating Income ‐ Diluted$        0.70 $        1.10 $       0.60 $       0.85 $       0.41 Net Income From: Income from Change in Fair Value of Equity Securities         0.01          0.01            ‐            ‐            ‐ Net Realized Gains on Sales of Investments         0.06          0.04         0.14         0.10         0.33 Net Impairment Losses Recognized in Earnings           ‐        (0.01)        (0.05)        (0.03)        (0.03) Acquisition Related Transaction and Integration Costs       (0.04)        (0.12)            ‐            ‐            ‐ Income from Continuing Operations ‐ Diluted $        0.73 $        1.02 $        0.69 $        0.92 $        0.71 Earnings Call Presentation –2Q 2018 19

Non‐GAAP Financial Measures Diluted Adjusted Consolidated Net Operating Income (Loss) Per Unrestricted Share ‐ Continued For the Six Months Ended Per Unrestricted Share 2Q18 2Q17 Adj. Consolidated Net Operating Income ‐ Diluted$             1.80 $            0.34 Net Income From: Income from Change in Fair Value of Equity Securities               0.02                 ‐ Net Realized Gains on Sales of Investments               0.10              0.46 Net Impairment Losses Recognized in Earnings             (0.01)             (0.10) Acquisition Related Transaction and Integration Costs             (0.16)                 ‐ Income from Continuing Operations ‐ Diluted $             1.75 $             0.70 Earnings Call Presentation –2Q 2018 20

Non‐GAAP Financial Measures Underlying Combined Ratio is a non‐GAAP financial measure that is computed by excluding the current year catastrophe and LAE ratio and the  prior‐year reserve development ratio (both non‐catastrophe and catastrophes) from the combined ratio. The most directly comparable GAAP  financial measure is the combined ratio, which is computed by adding the total incurred loss and LAE ratio, including the impact of catastrophe  losses and loss and LAE reserve development from prior years, with the insurance expense ratio. Kemper believes the underlying combined ratio is useful to investors and is used by management to reveal the trends in Kemper’s property and  casualty insurance businesses that may be obscured by catastrophe losses and prior‐year reserve development. These catastrophe losses may  cause loss trends to vary significantly between periods as a result of their incidence of occurrence and magnitude, and can have a significant  impact on incurred losses and LAE and the combined ratio. Prior‐year reserve development is 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. Kemper believes it is useful for investors to evaluate these components separately  and in the aggregate when reviewing its underwriting performance. The underlying combined ratio should not be considered a substitute for the  combined ratio and does not reflect the overall underwriting profitability of our business. For the Three Months Ended 2Q17 3Q17 4Q17 1Q18 2Q18 Total Nonstandard Personal Automobile Underlying Combined Ratio 94.5% 91.3% 95.4% 93.2% 92.5% Current Year Catastrophe Loss and LAE Ratio 1.0% 0.6% (0.3%) 0.1% 0.6% Prior Years Non‐Catastrophe Losses and LAE Ratio (0.4%) 0.9% 1.1% 0.1% 1.4% Prior Years Catastrophe Losses and LAE Ratio0.0%0.0%0.0%(0.1%) 0.0% Combined Ratio as Reported 95.1% 92.8% 96.2% 93.3% 94.5% Earnings Call Presentation –2Q 2018 21

Non‐GAAP Financial Measures Underlying Combined Ratio  ‐ Continued For the Three Months Ended 2Q17 3Q17 4Q17 1Q18 2Q18 Preferred Personal Automobile Underlying Combined Ratio 103.1% 99.3% 104.3% 100.3% 98.2% Current Year Catastrophe Loss and LAE Ratio 3.7% 2.6% (0.1%) 0.6% 3.6% Prior Years Non‐Catastrophe Losses and LAE  6.3% 0.8% 1.2% 0.5%  (1.3%) Prior Years Catastrophe Losses and LAE Ratio (0.2%) 0.0% 0.0% 0.0% (0.1%) Combined Ratio as Reported 112.9% 102.7% 105.4% 101.4% 100.4% Homeowners Underlying Combined Ratio 79.6% 85.8% 69.0% 88.1% 81.6% Current Year Catastrophe Loss and LAE Ratio 40.1% 37.2% 75.6% 10.5% 57.7% Prior Years Non‐Catastrophe Losses and LAE  2.3% 1.3% 2.5% 9.1% 4.3% Prior Years Catastrophe Losses and LAE Ratio (2.7%) (1.2%) (0.8%) (8.3%) (2.1%) Combined Ratio as Reported 119.3% 123.1% 146.3% 99.4% 141.5% Earnings Call Presentation –2Q 2018 22

EX-99.4

INFINITY PROPERTY & CASUALTY CORPORATION Supplementary Financial Information June 30, 2018

Supplementary Financial Information Table of Contents Infinity Property and Casualty Corporation Page # Highlights GAAP Highlights 1 (a) Statutory Highlights 1 (b) Consolidated Earnings 2 (a) Footnotes to Consolidated Earnings 2 (b) Consolidated Balance Sheet 3 (a) Shareholders' Equity Progression 3 (b) Consolidated Statement of Cash Flows 4 Investment Portfolio 5 Insurance Operations Underwriting Results 6 State Detail Policies in Force 7 Gross Written Premium 8 Combined Ratios 9 Reconciliation of non-GAAP disclosures 10 Forward Looking Statements This financial release contains certain statements that may be deemed to be “forward‐looking statements” that anticipate results based on our estimates, assumptions and plans that are subject to uncertainty. These statements are made subject to the safe‐ harbor provisions of the Private Securities Litigation Reform Act of 1995. All statements in this financial release not dealing with  historical results or current facts are forward‐looking and are based on estimates, assumptions, and projections. Statements which  include the words "assumes," "believes," "seeks," "expects," "may," "should," "intends," "likely," "targets," "plans," "anticipates,"  "estimates" or the negative version of those words and similar statements of a future or forward‐looking nature identify forward‐ looking statements. Examples of such forward‐looking statements include statements relating to expectations concerning market  conditions, premium  growth, earnings, investment performance, expected losses, rate changes and loss experience.  The primary events or circumstances that could cause actual results to differ materially from what we expect include  determinations with respect to reserve adequacy, realized gains or losses on the investment portfolio (including other‐than‐ temporary impairments for credit losses), loss cost trends and competitive conditions in our key Focus States. For a more detailed  discussion of some of the foregoing risks and uncertainties which could cause actual results to differ from those contained in the  forward‐looking statements, see Infinity’s filings with the Securities and Exchange Commission.

INFINITY PROPERTY & CASUALTY CORPORATION GAAP HIGHLIGHTS (in millions, except per share amounts and ratios) Incr/Decr Three months ended YTD YTD 3 months 6 months June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, Dec 31, June 30, June 30, June 30, June 30, 2018 2018 2017 2017 2017 2017 2017 2018 2017 2018 2018 (as adjusted) (as adjusted) GAAP Info Total revenues $ 414.1 $ 388.8 $ 382.8 $ 380.7 $ 377.1 $ 377.6 $ 1,518.2 $ 802.8 $ 754.7 $ 37.0 $ 48.2 Revenue growth rate 9.8% 3.0% 6.4% EBIT (1) Including realized gains $ 39.0 $ 28.4 $ 41.1 $ 25.2 $ 10.3 $ 18.4 $ 95.0 $ 67.4 $ 28.6 $ 28.7 $ 38.8 Excluding realized gains $ 40.3 $ 31.3 $ 40.9 $ 25.6 $ 8.4 $ 17.9 $ 92.8 $ 71.6 $ 26.2 $ 31.9 $ 45.3 Pre-Tax Earnings (2) Including realized gains $ 35.4 $ 24.9 $ 37.6 $ 21.7 $ 6.8 $ 14.9 $ 80.9 $ 60.4 $ 21.6 $ 28.7 $ 38.8 Excluding realized gains $ 36.8 $ 27.8 $ 37.4 $ 22.1 $ 4.9 $ 14.4 $ 78.7 $ 64.6 $ 19.2 $ 31.9 $ 45.3 After-Tax Earnings (3) Including realized gains ("net earnings") $ 27.8 $ 20.1 $ 14.1 $ 15.0 $ 5.2 $ 10.5 $ 44.7 $ 47.9 $ 15.7 $ 22.6 $ 32.2 Excluding realized gains ("operating earnings $ 28.8 $ 22.3 $ 13.9 $ 15.3 $ 3.9 $ 10.2 $ 43.3 $ 51.2 $ 14.1 $ 24.9 $ 37.0 Net earnings per share (fully diluted) (3) $ 2.52 $ 1.82 $ 1.28 $ 1.35 $ 0.47 $ 0.94 $ 4.04 $ 4.34 $ 1.41 $ 2.05 $ 2.93 Net earnings excluding net realized gains (losses) on investments per share (fully $ 2.62 $ 2.03 $ 1.27 $ 1.38 $ 0.36 $ 0.91 $ 3.91 $ 4.64 $ 1.27 $ 2.26 $ 3.37 Total assets $ 2,582.2 $ 2,551.5 $ 2,474.5 $ 2,509.8 $ 2,453.3 $ 2,441.2 $ 2,474.5 $ 2,582.2 $ 2,453.3 $ 128.8 Total shareholders' equity $ 735.8 $ 717.9 $ 715.8 $ 714.8 $ 708.3 $ 705.2 $ 715.8 $ 735.8 $ 708.3 $ 27.5 Total shareholders' equity ex FAS 115 $ 752.6 $ 729.8 $ 696.6 $ 691.9 $ 689.8 $ 691.4 $ 696.6 $ 752.6 $ 689.8 $ 62.8 Total tangible shareholders' equity $ 660.6 $ 642.6 $ 640.5 $ 639.5 $ 633.0 $ 629.9 $ 640.5 $ 660.6 $ 633.0 $ 27.5 Annualized return on average GAAP equity (based on Net Earnings) 15.3% 11.2% 7.9% 8.4% 2.9% 6.0% 6.3% 13.2% 4.5% 12.4% 8.7% Annualized returns (based on operating earnings) Return on revenues 7.0% 5.7% 3.6% 4.0% 1.0% 2.7% 2.9% 6.4% 1.9% 5.9% 4.5% Return on average assets 4.5% 3.6% 2.2% 2.5% 0.6% 1.7% 1.8% 4.0% 1.2% 3.8% 2.9% Return on average GAAP equity 15.9% 12.5% 7.8% 8.6% 2.2% 5.8% 6.1% 14.1% 4.0% 13.6% 10.1% Return on average GAAP equity ex FAS 115 15.6% 12.5% 8.0% 8.8% 2.3% 5.9% 6.3% 14.1% 4.1% 13.3% 10.0% Shares outstanding used in book value calculation 10.942 10.942 10.935 10.968 11.043 11.053 10.935 10.942 11.043 (0.101) Book value per share $ 67.25 $ 65.61 $ 65.46 $ 65.17 $ 64.14 $ 63.80 $ 65.46 $ 67.25 $ 64.14 $ 3.11 Book value per share ex FAS 115 $ 68.78 $ 66.69 $ 63.70 $ 63.08 $ 62.46 $ 62.55 $ 63.70 $ 68.78 $ 62.46 $ 6.32 Loss and loss adjustment expense ratio 73.5% 74.7% 71.2% 76.3% 80.7% 79.3% 76.8% 74.1% 80.0% -7.1% -5.9% Underwriting expense ratio 17.8% 17.8% 18.9% 18.4% 18.7% 17.3% 18.3% 17.8% 18.0% -1.0% -0.3% Calendar year combined ratio 91.3% 92.6% 90.0% 94.6% 99.4% 96.6% 95.2% 91.9% 98.0% -8.1% -6.1% Senior Debt Rating (as of July 30, 2018) AM Best BBB (stable outlook) Standard & Poors BBB- (stable outlook) Moody's Baa3 (stable outlook) Notes: (1)Please refer to Note 1 on page 2(b). (2)Please refer to Note 1 on page 2(b). (3)Please refer to Note 1 on page 2(b). 1 (a)

INFINITY PROPERTY & CASUALTY CORPORATION STATUTORY HIGHLIGHTS ($ in millions) Incr/Decr Three months endedYTD YTD 3 months 6 months June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, Dec 31, June 30, June 30, June 30, June 30, 2018 2018 2017 2017 2017 2017 2017 2018 2017 2018 2018 SAP Info Gross written premium $ 402.2 $ 421.6 $ 340.6 $ 362.2 $ 323.8 $ 370.7 $ 1,397.3 $ 823.8 $ 694.5 $ 78.4 $ 129.3 Gross written premium growth 24.2% 13.7% 18.6% Net written premium $ 399.2 $ 417.9 $ 335.9 $ 359.0 $ 323.8 $ 368.1 $ 1,386.9 $ 817.1 $ 691.9 75.4 125.2 Net written premium growth 23.3% 13.5% 18.1% Policyholder surplus (1) (2) $ 682.8 $ 666.3 $ 665.5 $ 672.3 $ 668.9 $ 668.8 $ 665.5 $ 682.8 $ 668.9 13.8 Net written premium to policyholder surplus (annualized) 2.3 2.5 2.0 2.1 1.9 2.2 2.1 2.4 2.1 0.3 Loss and loss adjustment expense ratio 73.8% 75.0% 71.4% 76.5% 80.9% 79.5% 77.1% 74.4% 80.2% -7.2% -5.9% Net underwriting expense ratio 16.0% 16.3% 16.7% 16.6% 17.0% 15.9% 16.5% 16.2% 16.4% -1.0% -0.2% Calendar year combined ratio (3) 89.8% 91.3% 88.2% 93.1% 97.9% 95.4% 93.6% 90.5% 96.6% -8.2% -6.1% Financial Strength Rating (as of July 30, 2018) AM Best A (stable outlook) Standard & Poors A- (stable outlook) Moody's A3 (stable outlook) Notes: (1) Policyholder surplus does not include the earned surplus of Infinity County Mutual Insurance Company (2) Dividends paid out of / (contributions to) insurance companies 16.8 16.8 18.5 18.5 14.5 14.5 66.0 33.5 29.0 (3) Excluding premium receivables charged off, including installment and other fee income. See page 6 for reconciliation to GAAP calendar year combined ratio. 1 (b)

INFINITY PROPERTY & CASUALTY CORPORATION CONSOLIDATED EARNINGS (in millions, except per share amounts and ratios) Incr/Decr Three months endedYTD YTD 3 months 6 months June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, Dec 31, June 30, June 30, June 30, June 30, 2018 2018 2017 2017 2017 2017 2017 2018 2017 2018 2018 (as adjusted) (as adjusted) Revenues: Earned Premium (1) $ 374.3 $ 354.0 $ 345.9 $ 345.0 $ 339.1 $ 341.4 $ 1,371.3 $ 728.2 $ 680.5 $ 35.1 $ 47.7 Installment and other fee income 28.8 27.4 26.6 26.0 26.7 26.7 106.0 56.2 53.4 2.2 $ 2.9 Net investment income (2) 11.8 9.8 9.8 9.8 9.0 8.7 37.3 21.6 17.7 2.8 3.9 Net realized gains (losses) on investments (3) (1.3) (2.8) 0.3 (0.4) 1.9 0.5 2.2 (4.2) 2.4 (3.2) (6.6) Other income 0.5 0.4 0.4 0.4 0.4 0.3 1.4 0.9 0.7 0.1 0.3 Total revenues 414.1 388.8 382.8 380.7 377.1 377.6 1,518.2 802.8 754.7 37.0 48.2 Costs and Expenses: Loss expenses (4) 231.6 228.3 207.9 223.2 233.0 230.5 894.6 459.9 463.5 (1.4) (3.6) Loss adjustment expenses (4) 43.6 36.3 38.3 40.0 40.6 40.2 159.1 79.9 80.8 3.0 (0.9) Commissions and other underwriting expenses 95.3 90.5 91.8 89.3 90.2 85.9 357.3 185.8 176.2 5.0 9.6 Interest expense 3.5 3.5 3.5 3.5 3.5 3.5 14.0 7.0 7.0 (0.0) (0.0) Corporate general and administrative expenses 3.7 4.7 2.9 2.2 2.4 2.3 9.8 8.4 4.7 1.2 3.7 Other expenses 0.9 0.5 0.8 0.8 0.5 0.3 2.5 1.4 0.8 0.4 0.6 Total costs and expenses 378.6 363.8 345.2 359.0 370.3 362.7 1,437.3 742.4 733.0 8.3 9.4 Earnings before income taxes 35.4 24.9 37.6 21.7 6.8 14.9 80.9 60.4 21.6 28.7 38.8 Provision for income taxes (5) 7.7 4.9 23.6 6.7 1.6 4.4 36.2 12.5 5.9 6.1 6.6 Net Earnings $ 27.8 $ 20.1 $ 14.1 $ 15.0 $ 5.2 $ 10.5 $ 44.7 $ 47.9 $ 15.7 $ 22.6 $ 32.2 Net Earnings excluding net realized gains (losses) on investments $ 28.8 $ 22.3 $ 13.9 $ 15.3 $ 3.9 $ 10.2 $ 43.3 51.2 14.1 $ 24.9 $ 37.0 Earnings per Common Share: Net Earnings Basic $ 2.54 $ 1.84 $ 1.29 $ 1.36 $ 0.47 $ 0.96 $ 4.07 $ 4.38 $ 1.43 $ 2.07 $ 2.95 Diluted $ 2.52 $ 1.82 $ 1.28 $ 1.35 $ 0.47 $ 0.94 $ 4.04 $ 4.34 $ 1.41 $ 2.05 $ 2.93 Net Earnings excluding net realized gains (losses) on investments (6)(7) Basic $ 2.64 $ 2.05 $ 1.27 $ 1.39 $ 0.36 $ 0.93 $ 3.94 $ 4.69 $ 1.28 $ 2.28 $ 3.41 Diluted $ 2.62 $ 2.03 $ 1.27 $ 1.38 $ 0.36 $ 0.91 $ 3.91 $ 4.64 $ 1.27 $ 2.26 $ 3.37 Average Number of Common Shares (8) Basic 10.9 10.9 10.9 11.0 11.0 11.0 11.0 10.9 11.0 (0.1) (0.1) Diluted 11.0 11.0 11.0 11.1 11.1 11.1 11.1 11.0 11.1 (0.1) (0.1) Operating Ratios (GAAP Basis) (9): Loss ratio 61.9% 64.5% 60.1% 64.7% 68.7% 67.5% 65.2% 63.1% 68.1% -6.8% -5.0% Loss adjustment expense ratio 11.7% 10.2% 11.1% 11.6% 12.0% 11.8% 11.6% 11.0% 11.9% -0.3% -0.9% Loss & LAE ratio 73.5% 74.7% 71.2% 76.3% 80.7% 79.3% 76.8% 74.1% 80.0% -7.1% -5.9% Expense ratio (incl Fee Income) 17.8% 17.8% 18.9% 18.4% 18.7% 17.3% 18.3% 17.8% 18.0% -1.0% -0.3% Combined ratio 91.3% 92.6% 90.0% 94.6% 99.4% 96.6% 95.2% 91.9% 98.0% -8.1% -6.1% Debt to Total Capital 27.2 27.7 27.8 27.8 28.0 28.1 27.8 27.2 28.0 (0.8) (0.8) Debt to Tangible Capital (7) 29.4 30.0 30.0 30.1 30.3 30.4 30.0 29.4 30.3 (0.9) (0.9) Fixed Coverage Ratio 10.4 7.6 10.9 6.7 2.8 4.9 6.3 9.0 3.8 7.6 5.1 Interest Coverage Ratio 11.1 8.1 11.7 7.2 2.9 5.2 6.8 9.6 4.1 8.2 5.5 Quarterly average investments (at cost) $ 1,651.4 $ 1,610.3 $ 1,583.0 $ 1,575.5 $ 1,556.7 $ 1,542.2 $ 1,563.7 $ 1,628.7 $ 1,550.9 $ 94.7 $ 77.8 GAAP book yield (gross of investment expenses) [annualized yield] 3.0% 2.6% 2.6% 2.6% 2.5% 2.4% 2.5% 2.8% 2.4% 0.5% 0.4% NM = not meaningful 2 (a)

INFINITY PROPERTY & CASUALTY CORPORATION FOOTNOTES TO CONSOLIDATED EARNINGS (in millions, except per share amounts and ratios) Incr/Decr Three months endedYTD YTD 3 months 6 months June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, Dec 31, June 30, June 30, June 30, June 30, 2018 2018 2017 2017 2017 2017 2017 2018 2017 2018 2018 (as adjusted) (as adjusted) (1) Earned Premium Earned premium reduced by the following amounts for premiums to be returned to California poliycholders: $ - $ - $ - $ - $ 12.4 $ 3.8 $ 16.2 $ - $ 16.2 Please refer to Note 13 - Legal and Regulatory Procedures to the Consolidated Financial Statements in our 2017 Form 10K for more details on these two separate events. (2) Investment Income Detail Investment income gross of expenses $ 12.4 $ 10.3 $ 10.4 $ 10.3 $ 9.5 $ 9.3 $ 39.5 $ 22.7 $ 18.8 2.8 3.9 Investment expenses (0.6) (0.5) (0.6) (0.5) (0.5) (0.6) (2.2) (1.1) (1.1) (0.0) (0.0) Net Investment Income $ 11.8 $ 9.8 $ 9.8 $ 9.8 $ 9.0 $ 8.7 $ 37.3 $ 21.6 $ 17.7 2.8 3.9 (3) Realized gains (losses) detail Net realized gains (losses) from sale of securities, before impairment losses $ (0.6) $ 1.4 $ 3.3 $ (0.4) $ 1.9 $ 0.5 $ 5.3 $ 0.8 $ 2.4 (2.5) (1.6) Net holding period gains (losses) on equity securities (0.3) (2.6) (2.9) (0.3) Total other-than-temporary impairment (OTTI) losses (0.8) (1.5) (2.8) (0.1) - (0.0) (2.9) (2.2) $ (0.0) (0.8) (2.2) Non-credit portion in other comprehensive income 0.4 0.2 0.0 0.0 - 0.0 0.1 0.5 0.0 0.4 0.5 OTTI losses reclassified from other comprehensive income (0.1) (0.3) (0.3) - - - (0.3) (0.4) $ - (0.1) (0.4) Net impairment losses recognized in earnings (0.5) (1.6) (3.1) (0.0) $ - (0.0) (3.1) (2.0) $ (0.0) (0.5) (2.0) Total net realized gains (losses) on investments $ (1.3) $ (2.8) $ 0.3 $ (0.4) $ 1.9 $ 0.5 $ 2.2 $ (4.2) $ 2.4 $ (3.2) (3.7) (4) Favorable (Unfavorable) development on prior accident year loss and LAE incurred (pre-tax): $ 3.6 $ 8.9 $ 1.3 $ 4.1 $ 6.7 $ 6.4 $ 18.5 12.5 $ 13.1 (3.1) (0.6) Impact to net combined ratio -1.0% -2.5% -0.4% -1.2% -2.0% -1.9% -1.3% -1.7% -1.9% 1.0% 0.2% After-tax Impact to net earnings $ 0.26 $ 0.64 $ 0.07 $ 0.24 $ 0.40 $ 0.37 $ 1.09 $ 0.90 $ 0.77 $ (0.14) $ 0.13 After-tax Impact to net earnings excluding net realized gains (losses) on investments $ 0.26 $ 0.64 $ 0.07 $ 0.24 $ 0.40 $ 0.37 $ 1.09 $ 0.90 $ 0.77 $ (0.14) $ 0.13 (5) Income Tax Rate Reconciliation GAAP tax expense (21% for 2018 and 35% for 2017) $ 7.4 $ 5.2 $ 13.2 $ 7.6 $ 2.4 $ 5.2 $ 28.3 $ 12.7 $ 7.6 5.1 5.1 Tax exempt interest (0.2) (0.3) (0.6) (0.6) (0.6) (0.6) (2.4) (0.5) (1.2) 0.4 0.7 Dividend received deduction (0.1) (0.0) (0.1) (0.1) (0.1) (0.1) (0.5) (0.1) (0.2) 0.1 0.1 Adjustment to valuation allowance - - - - - - - - - - - Prior Period Tax Adjustment - - - - - - - - - - - Gain on sale - - - - - - - - - - - Deferred tax rate adjustment - - 10.2 - - - 10.2 - - - - Other 0.5 (0.1) 0.2 (0.2) (0.0) (0.1) (0.2) 0.5 (0.2) 0.6 0.6 Total GAAP tax expense $ 7.7 $ 4.9 $ 22.8 $ 6.7 $ 1.6 $ 4.4 $ 35.4 12.5 $ 5.9 6.1 6.6 Effective tax rate 21.6% 19.5% 62.6% 30.9% 23.4% 29.3% 44.7% 20.7% 27.5% -1.8% -6.7% Operating tax rate 21.6% 19.6% 60.7% 31.0% 18.9% 29.1% 31.1% 20.8% 26.5% 2.7% -5.8% (6) Impact of Retrospective Adoption of ASU 2014-09 Revenue from Contracts with Customers . Line items on the Statement of Earnings have been adjusted as follows: Fee Income $ 0.2 $ (0.0) $ 0.2 $ (0.2) $ 0.2 $ (0.0) Provision for income taxes 0.9 (0.0) 0.1 (0.1) 0.9 (0.0) Net Earnings $ (0.6) $ (0.0) $ 0.1 $ (0.1) $ (0.7) $ (0.0) Net Earnings Per Common Share - Basic $ (0.06) $ (0.00) $ 0.01 $ (0.01) $ (0.06) $ - Net Earnings Per Common Share - Diluted $ (0.06) $ (0.00) $ 0.01 $ (0.02) $ (0.06) $ - (7) Net Earnings excluding net realized gains (losses) on investments and Tangible Capital are Non-GAAP measures. Please see page 10 for a definition and reconcilation to the most comparable GAAP measure. (8) Shares Outstanding Calculation Average basic shares outstanding 10.920 10.915 10.922 10.993 11.006 10.998 10.984 10.917 10.998 (0.086) (0.081) Restricted stock not yet vested 0.011 0.008 0.006 0.017 0.036 0.033 0.022 0.010 0.033 (0.025) (0.024) Dilutive effect of performance share plan 0.088 0.086 0.058 0.052 0.041 0.096 0.062 0.087 0.096 0.047 (0.009) Average diluted shares outstanding 11.019 11.009 10.986 11.062 11.082 11.127 11.067 11.014 11.127 (0.064) (0.113) (9) Impact to Combined Ratio from Catastrophes Catastrophe losses (recoveries), pretax $ 1.4 $ (0.1) $ (0.9) $ 15.1 $ 1.7 $ 1.5 $ 17.4 $ 1.4 $ 3.2 (0.3) (1.9) Impact to net combined ratio 0.4% 0.0% -0.3% 4.4% 0.5% 0.5% 1.3% 0.2% 0.5% -0.1% -0.3% 2 (b)

INFINITY PROPERTY & CASUALTY CORPORATION CONSOLIDATED BALANCE SHEETS ($ in millions) June 30, March 31, Dec. 31, June 30, March 31, Dec. 31, Dec. 31, 2018 2018 2017 2018 2018 2017 2016 (as adjusted) (as adjusted) (as adjusted) ASSETS LIABILITIES Investments (1) Unpaid losses and loss adjustment expenses (2) $ 714.2 $ 701.0 $ 715.1 $ 685.5 Fixed maturities - at fair value $ 1,479.5 $ 1,497.9 $ 1,441.1 Unearned premium 716.5 691.5 627.6 614.3 (amortized cost $1,500.7, $1,512.9, $1,439.9, and $1,392.7) Long-term debt 273.9 273.9 273.8 273.6 Equity securities - at fair value 90.3 90.5 96.0 Commissions payable 16.4 15.8 16.7 16.2 (cost $66.0, $65.9, $68.8, and $77.0) Payable for securities purchased 4.0 40.4 5.6 13.9 Short-term investments - at fair value - - 2.5 Other liabilities 121.3 111.0 119.8 105.6 (amortized cost $0, $0, $2.5, and $2.9) TOTAL LIABILITIES 1,846.3 1,833.6 1,758.7 1,709.1 . Total investments 1,569.8 1,588.4 1,539.7 Cash and cash equivalents (1) 102.8 88.8 107.6 Accrued investment income 13.1 10.1 13.1 Agents' balances and premium receivable 584.2 557.2 508.0 Property and equipment (net of depreciation) 75.9 78.7 82.5 Prepaid reinsurance premium - 0.5 1.0 SHAREHOLDERS' EQUITY Recoverable from reinsurers 18.7 22.7 30.3 Common stock 21.9 21.9 21.9 21.8 Deferred policy acquisition costs 102.9 98.7 88.3 Additional paid-in capital 386.7 385.3 383.6 378.7 Current and deferred income taxes 19.2 9.1 10.5 Retained earnings 846.4 824.9 793.1 773.9 Receivable for securities sold 0.1 0.1 1.7 Accumulated other comprehensive income, net of tax (16.1) (11.2) 19.8 7.9 Other assets 20.3 21.9 16.6 Treasury stock, at cost (3) (503.1) (503.1) (502.5) (487.0) Goodwill 75.3 75.3 75.3 TOTAL SHAREHOLDERS' EQUITY 735.8 717.9 715.8 695.4 TOTAL LIABILITIES AND SHAREHOLDERS' TOTAL ASSETS$ 2,582.2 $ 2,551.5 $ 2,474.5 EQUITY $ 2,582.2 $ 2,551.5 $ 2,474.5 $ 2,404.5 Notes: Unrestricted cash and investments at the (1)holding company $ 180.4 $ 170.7 $ 171.0 (2) Net unpaid losses and loss adjustment expenses$ 695.7 $ 681.5 $ 683.5 $ 668.3 Ceded unpaid losses and loss adjustment expenses 18.6 19.5 31.6 17.1 (2) December 2016 - December 2017 updated for retrospective adoption of ASU 2014-09 Revenue Gross unpaid losses and loss adjustment expenses $ 714.2 $ 701.0 $ 715.1 $ 685.5 from Contracts with Customers. Agents' balances and premium receivable, current and deferred income taxes, other liabilities (unearned fees) and retained earnings have been adjusted. QTD Net paid losses & LAE $ 261.0 $ 266.6 $ 258.9 385.4 following amounts: QTD Gross paid losses & LAE $ 262.0 $ 278.6 $ 260.4 368.2 Agents' balances and premium receivable $ (0.1) Current and deferred income taxes $ 1.2 YTD Net paid losses & LAE $ 527.6 $ 266.6 $ 1,038.5 $ 1,083.7 Total assets $ 1.1 YTD Gross paid losses & LAE $ 540.7 $ 278.6 $ 1,024.1 $ 1,081.3 Other liabilities (unearned fees) $ 5.5 Retained earnings $ (4.5) (3) Shares repurchased during quarter - - 48,700 15,163 Total liablities and shareholders' equity $ 1.1 Shares surrendered during quarter - 5,030 - - Cumulative number of treasury shares 10,937,569 10,937,569 10,932,539 10,766,211 3 (a)

INFINITY PROPERTY & CASUALTY CORPORATION SHAREHOLDERS' EQUITY PROGRESSION ($ in millions) Three months endedYTD YTD June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, Dec 31, June 30, June 30, 2018 2018 2017 2017 2017 2017 2017 2018 2017 (as adjusted) (as adjusted Shareholders' Equity Balance at Beginning of Period $ 717.9 $ 715.8 $ 714.8 $ 708.3 $ 705.2 $ 699.2 $ 699.2 $ 715.8 $ 699.2 Cumulative effect of change in accounting principle - (0.0) - - - (3.8) (3.8) (0.0) (3.8) Net earnings 27.8 20.1 14.1 15.0 5.2 10.5 44.7 47.9 15.7 Net change in postretirement benefit liability, net of tax (0.0) (0.0) (0.1) (0.0) (0.0) (0.0) (0.1) (0.0) (0.0) Change in unrealized gain (loss) on fixed maturity investments, net of tax (1) (5.0) (13.0) (3.9) 4.4 4.6 6.6 11.7 (18.0) 11.2 Change in non-credit component of impairment losses on fixed maturities, net of tax 0.1 0.2 0.2 0.0 0.1 0.0 0.3 0.2 0.1 Comprehensive income (loss) 22.9 7.3 10.3 19.3 9.8 17.1 56.6 30.1 23.1 Dividends paid to common shareholders (6.3) (6.3) (6.3) (6.4) (6.4) (6.4) (25.5) (12.7) (12.8) Shares issued and share-based compensation expense, including tax benefit 1.4 1.8 1.7 0.5 1.3 1.4 4.9 3.2 2.8 Acquisition of treasury stock - (0.6) (4.6) (6.9) (1.6) (2.3) (15.5) (0.6) (4.0) Shareholders' Equity Balance at End of Period $ 735.8 $ 717.9 $ 715.8 $ 714.8 $ 708.3 $ 705.2 $ 715.8 $ 735.8 $ 708.3 Notes: (1) The amounts for 2018 are for fixed maturities, only. (2) 2017 has been updated for the retrospective adoption of ASU 2014-09 Revenue from Contracts with Customers . Net earnings and Ending Shareholders' Equity Balances have been adjusted by the following amounts: Net earnings $ (0.6) $ (0.0) $ 0.1 $ (0.1) $ (0.7) (0.0) Shareholders' Equity Balance at End of Period $ (4.5) $ (3.8) $ (3.8) $ (3.9) $ (4.5) (7.8) 3 (b)

INFINITY PROPERTY & CASUALTY CORPORATION CONSOLIDATED STATEMENTS OF CASHFLOWS ($ in millions) Incr/Decr Three months endedYTD YTD 3 months 6 months June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, Dec 31, June 30, June 30, June 30, June 30, 2018 2018 2017 2017 2017 2017 2017 2018 2017 2018 2018 (as adjusted) (as adjusted) Operating Activities: Net earnings: $ 27.8 $ 20.1 $ 14.1 $ 15.0 $ 5.2 $ 10.5 $ 44.7 $ 47.9 $ 15.7 $ 22.6 $ 32.2 Adjustments: Depreciation 3.4 3.7 4.0 4.0 4.1 4.2 16.3 7.1 8.3 (0.7) (1.2) Amortization 3.7 4.8 5.0 5.4 5.7 5.3 21.5 8.5 11.0 (2.0) (2.5) Net realized (gains) losses on investments 1.3 2.8 (0.3) 0.4 (1.9) (0.5) (2.2) 4.2 (2.4) 3.2 6.6 (Gain) loss on disposal of property and equipment 0.0 0.0 0.1 0.0 (0.0) (0.0) 0.0 0.0 (0.0) 0.0 0.0 Share-based compensation expense 1.4 1.7 1.6 0.4 1.2 1.4 4.6 3.1 2.6 0.2 0.5 Activity related to rabbi trust 0.0 (0.0) 0.0 0.1 0.1 0.1 0.2 0.0 0.1 (0.0) (0.1) Change in accrued investment income (3.0) 3.0 (0.7) 1.1 (1.2) 0.2 (0.6) (0.0) (1.0) (1.8) 1.0 Change in agents' balances and premium receivable (27.0) (49.2) 1.1 (11.1) 14.2 (17.1) (13.0) (76.2) (2.9) (41.1) (73.3) Change in reinsurance receivables 4.5 8.2 8.0 (18.3) (1.3) 0.9 (10.7) 12.7 (0.4) 5.8 13.1 Change in deferred policy acquisition costs (4.2) (10.4) 3.1 (1.0) 3.7 (3.0) 2.8 (14.6) 0.7 (7.9) (15.3) Change in other assets (7.7) (0.8) 17.7 0.3 (8.7) (4.5) 4.7 (8.5) (13.2) 1.0 4.7 Change in unpaid losses and loss adjustment expenses 13.2 (14.1) (14.2) 28.2 22.2 (6.5) 29.6 (0.9) 15.6 (8.9) (16.5) Change in unearned premium 25.0 63.9 (9.9) 14.0 (17.8) 26.9 13.2 88.9 9.1 42.8 79.8 Change in other liabilities 10.9 (9.8) (7.7) 12.1 4.8 5.6 14.7 1.1 10.4 6.1 (9.3) Net cash provided by (used in) operating activities 49.3 23.9 21.8 50.5 30.1 23.5 126.0 73.3 53.7 19.2 19.6 Investing Activities: Purchases of: Fixed maturities (139.6) (403.5) (78.1) (136.8) (155.0) (120.8) (490.7) (543.1) (275.8) 15.4 (267.2) Equity securities - - - - - (1.9) (1.9) - (1.9) - 1.9 Short-term investments - - - (2.6) (0.4) - (3.0) - (0.4) 0.4 0.4 Property and equipment (0.6) (0.3) (2.0) (1.0) (0.7) (0.9) (4.6) (0.9) (1.6) 0.1 0.7 Maturities and redemptions of fixed maturities 32.9 32.5 36.8 73.4 65.2 43.3 218.6 65.4 108.5 (32.3) (43.1) Maturities and redemptions of short-term investments - - - 0.4 0.5 - 0.9 - 0.5 (0.5) (0.5) Proceeds from sales of: Fixed maturities 78.5 328.1 29.0 44.2 81.5 37.7 192.4 406.5 119.2 (3.0) 287.4 Equity securities - 5.0 9.0 - 5.0 2.0 16.0 5.0 7.0 (5.0) (2.0) Short-term investments - 2.5 - - - 2.4 2.4 2.5 2.4 - 0.1 Property and equipment - - (0.0) 0.0 0.0 0.0 0.0 - 0.0 (0.0) (0.0) Net cash provided by (used in) investing activities (28.8) (35.7) (5.2) (22.4) (4.0) (38.2) (69.8) (64.5) (42.2) (24.8) (22.4) Financing Activities: Proceeds from stock options exercised and - 0.1 0.1 0.1 0.1 0.1 0.3 0.1 0.1 (0.1) (0.1) Change in restricted cash related to planned redemption of debt - - - - - - - - - - - Principal payments under capital lease obligations (0.1) (0.1) (0.1) (0.1) (0.1) (0.1) (0.5) (0.3) (0.3) (0.0) (0.0) Acquisition of treasury stock - (0.6) (4.9) (6.9) (1.5) (2.3) (15.5) (0.6) (3.7) 1.5 3.2 Dividends paid to shareholders (6.3) (6.3) (6.3) (6.4) (6.4) (6.4) (25.5) (12.7) (12.8) 0.1 0.1 Net cash provided by (used in) financing activities (6.5) (7.0) (11.3) (13.3) (7.9) (8.8) (41.3) (13.5) (16.7) 1.4 3.2 Net Increase (Decrease) in Cash and Cash Equivalents 14.0 (18.8) 5.2 14.7 18.2 (23.4) 14.8 (4.8) (5.2) (4.2) 0.4 Cash and cash equivalents at beginning of period 88.8 107.6 102.4 87.6 69.4 92.8 92.8 107.6 92.8 19.4 14.8 Cash and Cash Equivalents at End of Period $ 102.8 $ 88.8 $ 107.6 $ 102.4 $ 87.6 $ 69.4 $ 107.6 $ 102.8 $ 87.6 $ 15.2 $ 15.2 Notes: (1) 2017 has been updated for the retrospective adoption of ASU 2014-09 Revenue from Contracts with Customers . 4

INFINITY PROPERTY & CASUALTY CORPORATION INVESTMENT PORTFOLIO ($ in millions) Fair Value Pre-tax Pre-tax Option Fair Value Pre-tax Pre-tax Option June 30, % of Book Market Adj. Dec. 31, % of Book Market Adj. 2018 Total Yield Yield Duration 2017 Total Yield Yield Duration Fixed Maturities NAIC Rating 1 $ 1,149.1 68.7% 2.6% 3.0% 4.1 $ 1,176.1 71.4% 2.2% 2.3% 3.4 NAIC Rating 2 210.5 12.6% 3.4% 3.8% 3.6 130.6 7.9% 3.0% 2.8% 2.9 Total investment grade 1,359.6 81.3% 2.8% 3.1% 4.1 1,306.7 79.3% 2.3% 2.3% 3.3 Non-investment grade (NAIC Rating 3-6) 119.9 7.2% 5.3% 5.4% 3.7 134.4 8.2% 5.1% 4.4% 3.3 Total fixed maturities 1,479.5 88.5% 3.0% 3.3% 4.0 1,441.1 87.5% 2.6% 2.5% 3.3 Cash and cash equivalents 102.8 6.1% 107.6 6.5% Equities 90.3 5.4% 96.0 5.8% Short-term investments - 0.0% 2.5 0.2% Total Cash and Investments $ 1,672.7 100.0% $ 1,647.2 100.0% Unrealized Gain (Loss): Fixed maturities - at amortized cost 1,500.7 $ 1,439.9 Fixed maturities - at fair value 1,479.5 1,441.1 Unrealized gain (loss) (21.2) 1.2 Equities - at cost 68.8 Equities - at fair value 96.0 Unrealized gain (loss) 27.2 Short-term investments - at cost - 2.5 Short-term investments - at fair value - 2.5 Unrealized gain (loss) - (0.0) Total Unrealized Gain (Loss) (21.2) 28.4 Fixed Maturities U.S. governments & agencies $ 130.6 7.8% 2.1% 2.6% 2.8 $ 60.5 3.7% 1.6% 2.0% 2.9 Foreign governments 0.8 0.0% 4.2% 4.1% 5.8 State and municipals 341.7 20.4% 2.3% 2.3% 4.1 494.2 30.0% 1.9% 1.8% 3.0 MBS, ABS and CMO: Residential mortgage-backed securities ("RMBS") 298.5 17.8% 3.0% 3.5% 5.6 351.0 21.3% 2.8% 2.9% 4.3 Commercial mortgage-backed securities ("CMBS") 68.4 4.1% 2.8% 3.2% 3.7 30.6 1.9% 1.8% 3.0% 3.6 Asset backed securities ("ABS"): Auto loans 39.8 2.4% 2.8% 3.2% 3.1 29.4 1.8% 2.2% 2.3% 2.2 Credit card receivables 24.5 1.5% 2.4% 2.9% 2.6 22.6 1.4% 2.2% 2.2% 3.6 Equipment leases 6.0 0.4% 2.6% 2.8% 1.8 5.0 0.3% 2.3% 2.3% 1.8 Collateralized Loan Obligation ("CLO") 49.7 3.0% 3.3% 3.7% 5.4 All other ABS 14.3 0.9% 3.8% 4.0% 4.1 5.5 0.3% 3.1% 3.1% 4.4 Total ABS 134.2 8.0% 3.0% 3.4% 3.9 62.4 3.8% 2.3% 2.3% 2.8 Total MBS, ABS and CMO 501.1 30.0% 3.0% 3.4% 4.9 444.0 27.0% 2.6% 2.8% 4.1 Corporates(1) Investment grade 385.6 23.1% 3.1% 3.6% 3.3 309.4 18.8% 2.7% 2.6% 2.8 Non-investment grade 119.6 7.2% 5.3% 5.4% 3.7 133.0 8.1% 5.1% 4.4% 3.3 505.2 30.2% 3.6% 4.0% 3.4 442.4 26.9% 3.4% 3.1% 2.9 Total 1,479.5 88.5% 3.0% 3.3% 4.0 1,441.1 87.5% 2.6% 2.5% 3.3 (1) Classification in investment grade or non-investment grade category is based on the middle of Standard and Poor's, Moody's or Fitch's ratings if all three ratings are available. 5

INFINITY PROPERTY & CASUALTY CORPORATION INSURANCE UNDERWRITING RESULTS ($ in millions) Incr/Decr Three months ended YTD YTD 3 months 6 months June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, Dec 31, June 30, June 30, June 30, June 30, 2018 2018 2017 2017 2017 2017 2017 2018 2017 2018 2018 (as adjusted) (as adjusted) GAAP Results Net written premium $ 399.2 $ 417.9 $ 335.9 $ 359.0 $ 323.8 $ 368.1 $ 1,386.9 $ 817.1 $ 691.9 $ 75.4 $ 125.2 Net earned premium 374.3 354.0 345.9 345.0 339.1 341.4 1,371.3 728.2 680.5 35.1 47.7 Loss expenses 231.6 228.3 207.9 223.2 233.0 230.5 894.6 459.9 463.5 (1.4) (3.6) Loss adjustment expenses 43.6 36.3 38.3 40.0 40.6 40.2 159.1 79.9 80.8 3.0 (0.9) Commission and other underwriting expenses (1) 95.3 90.5 91.8 89.3 90.2 85.9 357.3 185.8 176.2 5.0 9.6 Underwriting income (loss) $ 3.8 $ (1.1) $ 7.9 $ (7.5) $ (24.7) $ (15.2) $ (39.6) $ 2.7 $ (40.0) $ 28.5 $ 42.6 Installment and other fee income (2) 28.8 27.4 26.6 26.0 26.7 26.7 106.0 56.2 53.4 2.2 2.9 Underwriting income (loss) after considering fee income $ 32.6 $ 26.3 $ 34.4 $ 18.5 $ 1.9 $ 11.5 66.3 $ 58.9 $ 13.4 30.7 45.5 Operating Ratios: Loss ratio 61.9% 64.5% 60.1% 64.7% 68.7% 67.5% 65.2% 63.1% 68.1% -6.8% -5.0% Loss adjustment expense ratio 11.7% 10.2% 11.1% 11.6% 12.0% 11.8% 11.6% 11.0% 11.9% -0.3% -0.9% Loss & LAE ratio 73.5% 74.7% 71.2% 76.3% 80.7% 79.3% 76.8% 74.1% 80.0% -7.1% -5.9% Expense ratio 17.8% 17.8% 18.9% 18.4% 18.7% 17.3% 18.3% 17.8% 18.0% -1.0% -0.3% Combined Ratio 91.3% 92.6% 90.0% 94.6% 99.4% 96.6% 95.2% 91.9% 98.0% -8.1% -6.1% Statutory Results Net written premium $ 399.2 $ 417.9 $ 335.9 $ 359.0 $ 323.8 $ 368.1 $ 1,386.9 $ 817.1 $ 691.9 $ 75.4 $ 125.2 Net earned premium 374.3 354.0 345.9 345.0 339.1 341.4 1,371.3 728.2 680.5 35.1 47.7 Loss expenses 231.5 228.3 207.9 223.1 233.0 230.5 894.5 459.8 463.5 (1.5) (3.6) Loss adjustment expenses 44.5 37.2 39.1 40.8 41.4 41.0 162.4 81.7 82.5 3.1 (0.7) Commission and other underwriting expenses (1) 90.5 92.3 78.5 81.8 78.0 82.3 320.7 182.8 160.4 12.5 22.4 Underwriting income (loss) $ 7.7 $ (3.8) $ 20.3 $ (0.8) $ (13.3) $ (12.4) $ (6.3) $ 3.9 $ (25.8) $ 21.0 $ 29.7 Installment and other fee income 26.6 24.1 22.3 22.3 23.0 23.9 91.5 50.7 46.9 3.7 3.8 Underwriting income (loss) after considering fee income $ 34.3 $ 20.3 $ 42.5 $ 21.5 $ 9.6 $ 11.5 $ 85.1 $ 54.6 $ 21.1 $ 24.7 $ 33.5 Operating Ratios: Loss ratio 61.9% 64.5% 60.1% 64.7% 68.7% 67.5% 65.2% 63.1% 68.1% -6.8% -5.0% Loss adjustment expense ratio 11.9% 10.5% 11.3% 11.8% 12.2% 12.0% 11.8% 11.2% 12.1% -0.3% -0.9% Loss & LAE Ratio 73.8% 75.0% 71.4% 76.5% 80.9% 79.5% 77.1% 74.4% 80.2% -7.2% -5.9% Gross expense ratio 22.7% 22.1% 23.4% 22.8% 24.1% 22.4% 23.1% 22.4% 23.2% -1.4% -0.8% Combined Ratio 96.4% 97.1% 94.8% 99.3% 105.0% 101.9% 100.2% 96.7% 103.4% -8.6% -6.7% Fee income -6.7% -5.8% -6.6% -6.2% -7.1% -6.5% -6.6% -6.2% -6.8% 0.4% 0.6% Combined Ratio Including Fee Income 89.8% 91.3% 88.2% 93.1% 97.9% 95.4% 93.6% 90.5% 96.6% -8.2% -6.1% Net expense ratio (including fee income) 16.0% 16.3% 16.7% 16.6% 17.0% 15.9% 16.5% 16.2% 16.4% -1.0% -0.2% NM = Not Meaningful Notes: (1) Stat-to-GAAP Reconciliation of commission and other underwriting expenses Stat commission and other underwriting expenses $ 90.5 $ 92.3 $ 78.5 $ 81.8 $ 78.0 $ 82.3 $ 320.7 $ 182.8 $ 160.4 Plus: Premium receivables charged off 5.2 3.6 5.1 3.9 4.2 2.6 15.8 8.8 6.7 Less: Deferred acquisition costs (4.2) (10.4) 3.1 (1.0) 3.7 (3.0) 2.8 (14.6) 0.7 Other Stat-to-GAAP adjustments 3.8 5.0 5.0 4.6 4.3 4.0 18.0 8.8 8.3 GAAP commission and other underwriting expenses $ 95.3 $ 90.5 $ 91.8 $ 89.3 $ 90.2 $ 85.9 $ 357.3 $ 185.8 $ 176.2 (2) See Note (6) on page 2(b) 6

INFINITY PROPERTY & CASUALTY CORPORATION POLICIES IN FORCE DETAIL Incr/Decr from % Incr/Decr from June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, March 31, June 30, March 31, June 30, 2018 2018 2017 2017 2017 2017 2018 2017 2018 2017 PERSONAL AUTO 731,604 712,893 683,802 687,251 697,005 706,783 18,711 34,599 2.6% 5.0% COMMERCIAL AUTO 60,971 58,708 56,818 55,935 55,214 53,756 2,263 5,757 3.9% 10.4% CLASSIC COLLECTOR 40,610 41,009 41,118 41,268 41,442 41,547 (399) (832) -1.0% -2.0% TOTAL ALL LINES 833,185 812,610 781,738 784,454 793,661 802,086 20,575 39,524 2.5% 5.0% Policy Mix Personal Auto - 6 Month 31.3% 32.3% 32.5% 32.9% 32.3% 31.1% -1.1% -1.0% Personal Auto - 12 Month 68.7% 67.7% 67.5% 67.1% 67.7% 68.9% 1.1% 1.0% Commercial Auto - 6 Month 7.3% 7.1% 7.0% 6.8% 6.7% 6.7% 0.2% 0.5% Commercial Auto - 12 Month 92.7% 92.9% 93.0% 93.2% 93.3% 93.3% -0.2% -0.5% 7

INFINITY PROPERTY & CASUALTY CORPORATION GROSS WRITTEN PREMIUM ($ in millions) Three Months ended YTD Twelve Months Ended *Adjusted June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, June 30, June 30, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, 2018 2018 2017 2017 2017 2017 2018 2017 2017 2016 2016 2015 2014 PERSONAL AUTO $ 349.4 $ 370.2 $ 296.9 $ 319.2 $ 276.9 $ 324.4 $ 719.6 $ 601.3 $ 1,217.4 $ 1,223.8 $ 1,240.0 $ 1,246.5 $ 1,237.8 Growth Rate 26.2% 14.1% 19.7% -1.8% -1.8% -0.5% 0.7% -0.3% COMMERCIAL AUTO $ 47.7 $ 47.7 $ 40.2 $ 38.6 $ 41.8 $ 42.8 $ 95.5 $ 84.6 $ 163.4 $ 143.7 $ 145.3 $ 126.0 $ 108.6 Growth Rate 14.2% 11.6% 12.9% 12.5% 14.0% 15.3% 16.0% 27.4% CLASSIC COLLECTOR $ 5.1 $ 3.7 $ 3.5 $ 4.4 $ 5.1 $ 3.6 $ 8.7 $ 8.6 $ 16.5 $ 15.9 $ 16.1 $ 15.3 $ 14.5 Growth Rate -0.1% 2.7% 1.0% 2.6% 3.7% 5.0% 6.1% 8.6% TOTAL ALL LINES / ALL STATES $ 402.2 $ 421.6 $ 340.6 $ 362.2 $ 323.8 $ 370.7 $ 823.8 $ 694.5 $ 1,397.3 $ 1,383.4 $ 1,401.4 $ 1,387.9 $ 1,360.9 Growth Rate 24.2% 13.7% 18.6% -0.3% -0.3% 1.0% 2.0% 1.6% Notes: *It is Infinity's policy to close the books on the last Friday of the month, which resulted in a fourteen week quarter during the fourth quarter of 2016. These columns present the growth for the fourth quarter and full year 2016 excluding the extra week. NM = not meaningful 8

INFINITY PROPERTY & CASUALTY CORPORATION STATUTORY COMBINED RATIOS ($ in millions) THREE MONTHS ENDED YEAR TO DATE March 31, 2018 March 31, 2017 Written Earned Loss & LAE U/W Combined Written Earned Loss & LAE U/W Combined Premium Premium Ratio Ratio Ratio Premium Premium Ratio Ratio Ratio PERSONAL AUTO $ 368.1 $ 310.3 74.3% 16.2% 90.5% $ 323.4 $ 302.4 79.6% 15.6% 95.2% COMMERCIAL AUTO 46.4 39.8 81.7% 16.1% 97.8% 41.4 35.2 81.0% 16.1% 97.1% CLASSIC COLLECTOR 3.4 3.9 62.9% 35.3% 98.2% 3.4 3.8 51.0% 37.2% 88.3% GRAND TOTAL $ 417.9 $ 354.0 75.0% 16.3% 91.3% $ 368.1 $ 341.4 79.5% 15.9% 95.4% June 30, 2018 June 30, 2017 June 30, 2018 June 30, 2017 Written Earned Loss & LAE U/W Combined Written Earned Loss & LAE U/W Combined Written Earned Loss & LAE U/W Combined Written Earned Loss & LAE U/W Combined Premium Premium Ratio Ratio Ratio Premium Premium Ratio Ratio Ratio Premium Premium Ratio Ratio Ratio Premium Premium Ratio Ratio Ratio PERSONAL AUTO $ 348.1 $ 328.7 73.2% 15.8% 89.0% $ 275.9 $ 298.4 80.8% 17.0% 97.8% $ 716.3 $ 639.0 73.7% 16.0% 89.7% $ 599.3 $ 600.8 80.2% 16.2% 96.4% COMMERCIAL AUTO 46.3 41.7 81.1% 15.9% 97.1% 43.1 36.9 84.0% 15.0% 99.0% 92.6 81.5 81.4% 16.0% 97.4% 84.4 72.1 82.5% 15.5% 98.0% CLASSIC COLLECTOR 4.8 3.9 46.4% 35.7% 82.1% 4.8 3.8 61.1% 33.9% 95.0% 8.2 7.8 54.6% 35.6% 90.1% 8.2 7.6 56.1% 35.3% 91.4% GRAND TOTAL $ 399.2 $ 374.3 73.8% 16.0% 89.8% $ 323.8 $ 339.1 80.9% 17.0% 97.9% $ 817.1 $ 728.2 74.4% 16.2% 90.5% $ 691.9 $ 680.5 80.2% 16.4% 96.6% Sept. 30, 2018 Sept. 30, 2017 Sept. 30, 2018 Sept. 30, 2017 Written Earned Loss & LAE U/W Combined Written Earned Loss & LAE U/W Combined Written Earned Loss & LAE U/W Combined Written Earned Loss & LAE U/W Combined Premium Premium Ratio Ratio Ratio Premium Premium Ratio Ratio Ratio Premium Premium Ratio Ratio Ratio Premium Premium Ratio Ratio Ratio PERSONAL AUTO $ 317.6 $ 303.5 75.5% 16.3% 91.7% $ 916.9 $ 904.4 78.6% 16.2% 94.9% COMMERCIAL AUTO 37.3 37.6 84.0% 16.6% 100.6% 121.7 109.7 83.0% 15.9% 98.9% CLASSIC COLLECTOR 4.1 3.8 91.4% 33.0% 124.4% 12.3 11.4 67.9% 34.5% 102.4% GRAND TOTAL $ 359.0 $ 345.0 76.5% 16.6% 93.1% $ 1,050.9 $ 1,025.5 79.0% 16.5% 95.4% Dec. 31, 2018 Dec. 31, 2017 Dec. 31, 2018 Dec. 31, 2017 Written Earned Loss & LAE U/W Combined Written Earned Loss & LAE U/W Combined Written Earned Loss & LAE U/W Combined Written Earned Loss & LAE U/W Combined Premium Premium Ratio Ratio Ratio Premium Premium Ratio Ratio Ratio Premium Premium Ratio Ratio Ratio Premium Premium Ratio Ratio Ratio PERSONAL AUTO $ 294.1 $ 303.6 70.7% 16.7% 87.4% $ 1,211.0 $ 1,208.0 76.6% 16.3% 93.0% COMMERCIAL AUTO 38.8 38.7 79.2% 16.5% 95.6% 160.5 148.3 82.0% 16.0% 98.0% CLASSIC COLLECTOR 3.1 3.6 46.3% 39.5% 85.8% 15.3 15.1 62.7% 35.5% 98.2% GRAND TOTAL $ 335.9 $ 345.9 71.4% 16.7% 88.2% $ 1,386.9 $ 1,371.3 77.1% 16.5% 93.6% NM = Not Meaningful Notes: Statutory combined ratios exclude premium receivables charged off, include fee income. See page 6 for reconciliation to GAAP calendar year combined ratio. 9

INFINITY PROPERTY & CASUALTY CORPORATION DEFINITIONS OF NON-GAAP FINANCIAL AND OPERATING MEASURES ($ in millions, except per share amounts) Gross written premium is the amount of premium charged for policies issued during a fiscal period (including assumed premium). Management uses gross written premium as a measure of production levels. Earned premiumGross written is the most premium comparableis the amount GAAP measure.of premium charged for policies issued during a fiscal period (including assumed premium). Management uses gross written premium as a measure of production levels. Earned premium is the most comparable GAAP measure. Net earnings excluding net realized gains (losses) Management uses net earnings excluding net realized gains (losses) on investments as a measure to evaluate the insurance business. The Company believes that net earningsOperating excluding earnings netis realized defined gains as net (losses) earnings, on invvestmentsbefore realized provides gains and investors losses aon valuable investments, measure after of tax. the performanceManagement without uses operating being obscured earnings by as the a measurenet effect to of evaluate realized thecapi insurancetal gains and business. losses, Thewhich Company can be volatile believes on athat quarterly operating basis. earnings Net earnings provides is investorsthe most comparablea valuable measure GAAP measure. of the performance without being obscured by the net effect of realized capital gains and losses, which can be volatile on a quarterly basis. Net earnings is the most comparable GAAP measure. Underwriting income measures the insurer's profit on insurance sales after all losses and expenses have been paid and is calculated by deducting losses and loss adjustment expenses and commissions and other underwritingUnderwriting expenses income frommeasures earned the premium. insurer's Management profit on insurance uses underwriting sales after allincome losses to and measure expenses the success have been of itspaid pricing and isand calculated underwriting by deducting strategies. lo sses It is usefuland loss for adjustment investors to expenses evaluate andthe componentscommissions of and our other profitability underwriting expenses from earned premium. Management uses underwriting income to measure the success of its pricing and underwriting strategies. It is useful for investors to evaluate the components of our separatelyprofitability from separately investments. from investments. Net earnings Net is the earnings most comparable is the most GAAPcomparable measure. GAAP measure. TangibleTangible capital capitalisis defined defined as as total total capital capital (face (long-term value ofdebt long-term plus total debt shareholders plus total shareholders'' equity) less intangibleequity) less assets. intangible Infinity assets. reports Infinity this nonreports-GAAP this measure non-GAAP because measure it is because a measure it is often a measure used by often management, used by management, debt-holders debt-holdersand rating agencies and rating when agencies evaluating when financial evaluating leverage. financial Total leverage. capital Total is the capital most comparableis the most comparableGAAP measure. GAAP measure. Incr/Decr Three months ended YTD YTD 3 months 6 months June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, Dec 31, June 30, June 30, June 30, June 30, 2018 2018 2017 2017 2017 2017 2017 2018 2017 2018 2018 (as adjusted) (as adjusted) The following schedule reconciles earned premium to gross written premium: Earned premium $ 374.3 $ 354.0 $ 345.9 $ 345.0 $ 339.1 $ 341.4 $ 1,371.3 $ 728.2 $ 680.5 $ 35.1 $ 47.7 Less: Change in unearned premium (25.0) (63.9) 9.9 (14.0) 15.3 (26.7) (15.5) (88.9) (11.4) (40.3) (77.5) Net written premium 399.2 417.9 335.9 359.0 323.8 368.1 1,386.9 817.1 691.9 75.4 125.2 Less: Ceded reinsurance (3.0) (3.7) (4.7) (3.2) 0.0 (2.6) (10.4) (6.7) (2.6) (3.0) (4.1) Gross written premium $ 402.2 $ 421.6 $ 340.6 $ 362.2 $ 323.8 $ 370.7 $ 1,397.3 $ 823.8 $ 694.5 $ 78.4 $ 129.3 The following schedule reconciles net earnings to operating earnings and underwriting income: Net Earnings $ 27.8 $ 20.1 $ 14.1 $ 15.0 $ 5.2 $ 10.5 $ 44.7 47.9 15.7 $ 22.6 $ 32.2 Less: Realized gains (losses) on investments (1.3) (2.8) 0.3 (0.4) 1.9 0.5 2.2 (4.2) 2.4 (3.2) (6.6) (Provision) benefit for income taxes 0.3 0.6 (0.1) 0.2 (0.7) (0.2) (0.8) 0.9 (0.8) 0.9 1.7 Adjustments, after-tax (1.1) (2.2) 0.2 (0.3) 1.2 0.3 1.4 (3.3) 1.6 (2.3) (4.9) Net Earnings excluding net realized gains (losses) on investments, after-tax $ 28.8 $ 22.3 $ 13.9 $ 15.3 $ 3.9 $ 10.2 $ 43.3 51.2 14.1 24.9 37.0 Less: Provision for income taxes (8.0) (5.4) (23.5) (6.9) (0.9) (4.2) (35.4) (13.4) (5.1) (7.0) (8.3) Pre-tax net earnings excluding net realized gains (losses) on investments 36.8 27.8 37.4 22.1 4.9 14.4 78.7 64.6 19.2 31.9 45.3 Less: Net investment income 11.8 9.8 9.8 9.8 9.0 8.7 37.3 21.6 17.7 2.8 3.9 Other income 0.5 0.4 0.4 0.4 0.4 0.3 1.4 0.9 0.7 0.1 0.3 Interest expense (3.5) (3.5) (3.5) (3.5) (3.5) (3.5) (14.0) (7.0) (7.0) 0.0 0.0 Corporate general and administrative expenses (3.7) (4.7) (2.9) (2.2) (2.4) (2.3) (9.8) (8.4) (4.7) (1.2) (3.7) Other expenses (0.9) (0.5) (0.8) (0.8) (0.5) (0.3) (2.5) (1.4) (0.8) (0.4) (0.6) Underwriting Income (Loss) $ 32.6 $ 26.3 $ 34.4 $ 18.5 $ 1.9 $ 11.5 $ 66.3 58.9 13.4 30.7 45.5 Net Earnings per Diluted Share $ 2.52 $ 1.82 $ 1.28 $ 1.35 $ 0.47 $ 0.94 $ 4.04 $ 4.34 $ 1.41 $ 2.05 $ 2.93 Less: Net realized gains (losses) on investments (0.10) (0.21) 0.01 (0.03) 0.11 0.03 0.13 (0.30) 0.14 (0.21) (0.44) Net Earnings excluding net realized gains (losses) on investments per Diluted Share $ 2.62 $ 2.03 $ 1.27 $ 1.38 $ 0.36 $ 0.91 $ 3.91 $ 4.64 $ 1.27 $ 2.26 $ 3.37 The following schedule reconciles total capital to tangible capital: Total Capital $ 1,010.8 $ 992.9 $ 990.8 $ 989.8 $ 983.3 $ 980.2 990.8 $ 1,010.8 $ 983.3 $ 27.5 $ 27.5 Less:Goodwill 75.3 75.3 75.3 75.3 75.3 75.3 75.3 75.3 75.3 - - Tangible Capital $ 935.6 $ 917.6 $ 915.5 $ 914.5 $ 908.0 $ 904.9 915.5 $ 935.6 $ 908.0 $ 27.5 $ 27.5 NM = not meaningful 10