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): November 5, 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 November 5, 2018, Kemper Corporation ("Kemper" or the "Registrant") issued a press release announcing its financial results for the third quarter of 2018 and the availability of Kemper’s third 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 9. – Financial Statements and Exhibits.

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits

99.1 Registrant’s press release dated November 5, 2018.

99.2 Third Quarter 2018 Investor Supplement of Kemper Corporation.

99.3 Third Quarter 2018 Earnings Call Presentation

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:	November 5, 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 200 East Randolph Street Chicago, IL 60601 kemper.com
Press Release

Kemper Reports Strong Third Quarter 2018 Results

CHICAGO, November 5, 2018 — Kemper Corporation (NYSE: KMPR) reported net income of $92.2 million, or $1.40 per diluted share, for the third quarter of 2018, compared to $47.7 million, or $0.92 per diluted share, for the third quarter of 2017. As adjusted for the acquisition of Infinity¹, net income was $131.7 million, or $2.01 per diluted share, for the third quarter of 2018, compared to $62.7 million, or $0.96 per diluted share, for the third quarter of 2017.

Adjusted consolidated net operating income² was $104.5 million, or $1.59 per diluted share, for the third quarter of 2018, compared to $44.4 million, or $0.85 per diluted share, for the third quarter of 2017. These results increased primarily from the significant growth in non-standard personal automobile insurance division, partially offset by the amortization of the Infinity purchase accounting adjustments.

Highlights of the quarter include:

◦ Property & Casualty earned premiums increased by 102 percent, or $452 million in the quarter, as reported, or 14 percent, or $107 million, as adjusted ¹ 

◦ Nonstandard personal automobile’s earned premiums increased by 166 percent, or $409 million in the quarter, as reported, or 18 percent, or $101 million, as adjusted ¹ 

◦ Investment portfolio generated a pre-tax equivalent annualized book yield of 5.2 percent in the quarter

“I’m very pleased with our performance this quarter, including strong earnings and double-digit growth in our specialty auto business, continued stability in our life and health results, and solid gains in investment income,” said Joseph P. Lacher, Jr., Kemper’s President and Chief Executive Officer. “In addition, we achieved two important milestones this quarter: the closing of our acquisition of Infinity, accelerating our progress towards becoming the premiere specialty auto franchise, and the introduction of our new brand identity, which will be an important part of strengthening our purpose and our connections with customers, employees, agents, and communities over the long term.”

	Three Months Ended						Nine Months Ended
(Dollars in Millions, Except Per Share Amounts) (Unaudited)	Sep 30, 2018			Sep 30, 2017			Sep 30, 2018			Sep 30, 2017
Adjusted Consolidated Net Operating Income2	$	104.5		$	44.4		$	198.5		$	61.5
Income from Continuing Operations	92.3			47.8			183.4			84.0
Net Income	92.2			47.7			183.6			84.0
Impact of Catastrophe Losses and Related Loss Adjustment Expense (LAE) on Net Income	$	(15.9	)	$	(21.5	)	$	(56.3	)	$	(87.2	)
Diluted Net Income Per Share From:
Adjusted Consolidated Net Operating Income2	$	1.59		$	0.85		$	3.49		$	1.19
Income from Continuing Operations	1.40			0.92			3.23			1.62
Net Income	1.40			0.92			3.23			1.62
Impact of Catastrophe Losses and Related LAE on Net Income Per Share	$	(0.24	)	$	(0.41	)	$	(0.99	)	$	(1.68	)

¹ AsAdjusted is a non-GAAP measure, which is computed by excluding the impact of purchase accounting and including the historical results of Legacy Kemper and Legacy Infinity in periods prior to the acquisition date of July 2, 2018. See “Use of Non-GAAP Financial Measures” for additional information.

² 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 $3,063.8 million, an increase of $948.2 million, or 45 percent, since year-end 2017 driven by our acquisition of Infinity and net income. Kemper ended the quarter with cash and investments at the holding company of $91.3 million, and the $300 million revolving credit agreement was undrawn.

During the third quarter of 2018, Kemper paid dividends of $15.7 million.

Kemper ended the quarter with a book value per share of $47.33, an increase of 15 percent from $41.11 at the end of 2017. Book value per share excluding net unrealized gains on fixed maturities was $45.22, up 27 percent from $35.57 at the end of 2017, driven by the Infinity acquisition and net income, partially offset by dividends paid to shareholders.

Revenues

Total revenues for the third quarter of 2018increased$505.2 million, or 73 percent, to $1,195.5 million, compared to the third quarter of 2017, driven by $408.8 million higher nonstandard personal auto earned premiums. On an as adjusted basis, revenues for the third quarter of 2018 increased $150.5 million, or 14 percent, to $1,195.5 million, compared to the third quarter of 2017, driven by $101.5 million higher nonstandard personal auto earned premiums. Nonstandard personal auto earned premiums increased primarily from higher policies in force. Net investment income increased $6.1 million to $92.0 million in the third quarter of 2018, as an $8.8 million increase in interest on fixed income securities was primarily offset by a $4.2 million reduction in net investment income on the alternative investments portfolio. Net realized investment gains were $3.6 million in the third quarter of 2018, compared to $8.1 million last year. Other income increased$36.8 million to $37.8 million in the third quarter of 2018 almost entirely due to a gain from the partial satisfaction of a judgment against Computer Services Corporation.

The investment portfolio in total generated a pre-tax equivalent annualized book yield of 5.2 percent for the third quarter of 2018, compared to 5.8 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						Nine Months Ended
(Dollars in Millions) (Unaudited)	Sep 30, 2018			Sep 30, 2017			Sep 30, 2018			Sep 30, 2017
Segment Net Operating Income:
Property & Casualty Insurance	$	28.2		$	22.9		$	79.4		$	5.7
Life & Health Insurance	26.7			23.5			76.9			65.5
Total Segment Net Operating Income	54.9			46.4			156.3			71.2
Corporate and Other Net Operating Income (Loss)	49.6			(2.0		)	42.2			(9.7		)
Adjusted Consolidated Net Operating Income	104.5			44.4			198.5			61.5
Net Income (Loss) From:
Change in Fair Value of Equity Securities	8.7			—			9.6			—
Net Realized Gains on Sales of Investments	2.8			5.3			7.9			29.3
Net Impairment Losses Recognized in Earnings	(1.4		)	(1.9		)	(1.8		)	(6.8		)
Acquisition Related Transaction and Integration Costs	(22.3		)	—			(30.8		)	—
Income from Continuing Operations	$	92.3		$	47.8		$	183.4		$	84.0

2

The Property & Casualty Insurance segment reported net operating income of $28.2 million for the third quarter of 2018, compared to $22.9 million in 2017. Results increased primarily from strong nonstandard personal auto growth and profitability and lower catastrophe losses, partially offset by the impact of the amortization of the Infinity purchase accounting adjustments. Catastrophe losses were $19.7 million before taxes in the third quarter of 2018, compared to $29.8 million last year. On an as adjusted basis, the Property & Casualty Insurance segment’s net operating income was $68.0 million in the third quarter of 2018, compared to $39.6 million in 2017.

The Property & Casualty Insurance segment’s underlying combined ratio increased 5.4 percentage points to 98.0 percent in the third quarter of 2018, primarily from an increase in the insurance expense ratio due to the amortization of the Infinity purchase accounting adjustments. The underlying loss ratio increased 1.3 percentage points to 71.9 percent, primarily from a deterioration in homeowners, partially offset by improvements in nonstandard personal auto and preferred personal auto. Nonstandard auto’s underlying loss ratio improved 1.1 percentage points to 74.1 percent in the quarter, as average earned premium outpaced loss cost trends. Preferred personal auto’s underlying loss ratio improved 2.5 percentage points to 67.2 percent, driven by increased earned rate and moderating loss trends. The homeowners underlying loss ratio increased 3.5 percentage points to 58.9 percent due to the cost related to our aggregate catastrophe program and a single large fire loss.

The Property & Casualty Insurance segment’s expense ratio increased 4.1 percentage points primarily due to the amortization of the Infinity purchase accounting adjustments.

The Life & Health Insurance segment reported net operating income of $26.7 million for the third quarter of 2018, compared to $23.5 million in 2017, primarily driven by higher earned premiums, an improved benefits ratio and to a lesser extent, an improved expense ratio. These gains were partially offset by a reduction in investment income in the Life business.

3

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

	Three Months Ended						Nine Months Ended
(Dollars in Millions, Except Per Share Amounts)	Sep 30, 2018			Sep 30, 2017			Sep 30, 2018			Sep 30, 2017
Revenues:
Earned Premiums	$	1,052.9		$	598.2		$	2,320.8		$	1,744.1
Net Investment Income	92.0			85.9			249.6			244.6
Other Income	37.8			1.0			40.2			2.9
Income from Change in Fair Value of Equity Securities	11.0			—			12.1			—
Net Realized Gains on Sales of Investments	3.6			8.1			10.0			45.0
Other-than-temporary Impairment Losses:
Total Other-than-temporary Impairment Losses	(1.8		)	(2.9		)	(2.3		)	(10.7		)
Portion of Losses Recognized in Other Comprehensive Income	—			—			—			0.2
Net Impairment Losses Recognized in Earnings	(1.8		)	(2.9		)	(2.3		)	(10.5		)
Total Revenues	1,195.5			690.3			2,630.4			2,026.1
Expenses:
Policyholders’ Benefits and Incurred Losses and Loss Adjustment Expenses	757.3			440.1			1,693.7			1,364.9
Insurance Expenses	296.0			163.7			627.3			485.2
Interest and Other Expenses	61.7			18.2			116.4			59.1
Total Expenses	1,115.0			622.0			2,437.4			1,909.2
Income from Continuing Operations before Income Taxes	80.5			68.3			193.0			116.9
Income Tax Expense	11.8			(20.5		)	(9.6		)	(32.9		)
Income from Continuing Operations	92.3			47.8			183.4			84.0
Income from Discontinued Operations	(0.1		)	(0.1		)	0.2			—
Net Income	$	92.2		$	47.7		$	183.6		$	84.0
Income from Continuing Operations Per Unrestricted Share:
Basic	$	1.42		$	0.92		$	3.26		$	1.63
Diluted	$	1.40		$	0.92		$	3.23		$	1.62
Net Income Per Unrestricted Share:
Basic	$	1.42		$	0.92		$	3.26		$	1.63
Diluted	$	1.40		$	0.92		$	3.23		$	1.62
Weighted-average Outstanding (Shares in Thousands):
Unrestricted Shares - Basic	64,580.4			51,366.8			55,925.7			51,308.7
Unrestricted Shares and Equivalent Shares - Diluted	65,349.5			51,566.4			56,495.5			51,480.3
Dividends Paid to Shareholders Per Share	$	0.24		$	0.24		$	0.72		$	0.72

4

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

	Three Months Ended						Nine Months Ended
(Dollars in Millions)	Sep 30, 2018			Sep 30, 2017			Sep 30, 2018			Sep 30, 2017
REVENUES:
Property & Casualty Insurance:
Earned Premiums:
Personal Automobile	$	766.7		$	353.0		$	1,554.0		$	1,012.8
Homeowners	62.5			66.7			186.5			199.6
Other Personal	10.1			10.7			30.4			32.2
Total Personal	839.3			430.4			1,770.9			1,244.6
Commercial Automobile	55.9			13.1			80.6			38.5
Total Earned Premiums	895.2			443.5			1,851.5			1,283.1
Net Investment Income	34.0			27.8			79.4			72.5
Other Income	0.9			0.4			1.6			0.9
Total Property & Casualty Insurance	930.1			471.7			1,932.5			1,356.5
Life & Health Insurance:
Earned Premiums:
Life	95.2			94.5			284.3			285.6
Accident & Health	44.9			42.0			132.0			120.6
Property	17.6			18.2			53.0			54.8
Total Earned Premiums	157.7			154.7			469.3			461.0
Net Investment Income	50.5			55.9			157.9			163.8
Other Income	1.2			0.7			2.9			1.9
Total Life & Health Insurance	209.4			211.3			630.1			626.7
Total Segment Revenues	1,139.5			683.0			2,562.6			1,983.2
Income from Change in Fair Value of Equity Securities	11.0			—			12.1			—
Net Realized Gains on Sales of Investments	3.6			8.1			10.0			45.0
Net Impairment Losses Recognized in Earnings	(1.8		)	(2.9		)	(2.3		)	(10.5		)
Other	43.2			2.1			48.0			8.4
Total Revenues	$	1,195.5		$	690.3		$	2,630.4		$	2,026.1

5

KEMPER CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (Dollars in Millions) (Unaudited)
	Sep 30, 2018		Dec 31, 2017
Assets:
Investments:
Fixed Maturities at Fair Value	$	6,108.6	$	5,382.7
Equity Securities at Fair Value	815.8		526.0
Equity Securities at Modified Cost	50.9		—
Equity Method Limited Liability Investments at Cost Plus Cumulative Undistributed Earnings	170.0		161.0
Fair Value Option Investments	—		77.5
Short-term Investments at Cost which Approximates Fair Value	688.5		235.5
Other Investments	412.8		422.2
Total Investments	8,246.6		6,804.9
Cash	92.8		45.7
Receivables from Policyholders	1,029.9		366.0
Other Receivables	243.1		194.3
Deferred Policy Acquisition Costs	447.4		365.3
Goodwill	1,091.2		323.0
Current Income Tax Assets	58.1		6.1
Other Assets	563.5		270.9
Total Assets	$	11,772.6	$	8,376.2
Liabilities and Shareholders’ Equity:
Insurance Reserves:
Life & Health	$	3,551.4	$	3,521.0
Property & Casualty	1,819.1		1,016.8
Total Insurance Reserves	5,370.5		4,537.8
Unearned Premiums	1,470.9		653.9
Deferred Income Tax Liabilities	40.4		14.8
Liabilities for Unrecognized Tax Benefits	4.5		8.1
Debt at Amortized Cost	1,123.7		592.3
Accrued Expenses and Other Liabilities	698.8		453.7
Total Liabilities	8,708.8		6,260.6
Shareholders’ Equity:
Common Stock	6.5		5.1
Paid-in Capital	1,661.3		673.1
Retained Earnings	1,365.1		1,243.0
Accumulated Other Comprehensive Income	30.9		194.4
Total Shareholders’ Equity	3,063.8		2,115.6
Total Liabilities and Shareholders’ Equity	$	11,772.6	$	8,376.2

6

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

	Three Months Ended						Nine Months Ended
(Dollars in Millions)	Sep 30, 2018			Sep 30, 2017			Sep 30, 2018			Sep 30, 2017
Results of Operations
Net Premiums Written	$	931.0		$	466.7		$	1,956.8		$	1,336.3
Earned Premiums	$	895.2		$	443.5		$	1,851.5		$	1,283.1
Net Investment Income	34.0			27.8			79.4			72.5
Other Income	0.9			0.4			1.6			0.9
Total Revenues	930.1			471.7			1,932.5			1,356.5
Incurred Losses and LAE related to:
Current Year:
Non-catastrophe Losses and LAE	644.2			313.1			1,325.7			924.5
Catastrophe Losses and LAE	19.7			29.8			69.6			128.2
Prior Years:
Non-catastrophe Losses and LAE	(3.5		)	1.6			4.9			23.0
Catastrophe Losses and LAE	(0.2		)	(1.2		)	(7.7		)	(4.4		)
Total Incurred Losses and LAE	660.2			343.3			1,392.5			1,071.3
Insurance Expenses	234.0			97.6			441.4			287.4
Other Expenses	1.7			—			1.7			—
Operating Income (Loss)	34.2			30.8			96.9			(2.2		)
Income Tax Benefit (Expense)	(6.0		)	(7.9		)	(17.5		)	7.9
Segment Net Operating Income	$	28.2		$	22.9		$	79.4		$	5.7
Ratios Based On Earned Premiums
Current Year Non-catastrophe Losses and LAE Ratio	71.9		%	70.6		%	71.5		%	72.0		%
Current Year Catastrophe Losses and LAE Ratio	2.2			6.7			3.8			10.0
Prior Years Non-catastrophe Losses and LAE Ratio	(0.4		)	0.4			0.3			1.8
Prior Years Catastrophe Losses and LAE Ratio	—			(0.3		)	(0.4		)	(0.3		)
Total Incurred Loss and LAE Ratio	73.7			77.4			75.2			83.5
Insurance Expense Ratio	26.1			22.0			23.8			22.4
Combined Ratio	99.8		%	99.4		%	99.0		%	105.9		%
Underlying Combined Ratio
Current Year Non-catastrophe Losses and LAE Ratio	71.9		%	70.6		%	71.5		%	72.0		%
Insurance Expense Ratio	26.1			22.0			23.8			22.4
Underlying Combined Ratio	98.0		%	92.6		%	95.3		%	94.4		%
Non-GAAP Measure Reconciliation
Underlying Combined Ratio	98.0		%	92.6		%	95.3		%	94.4		%
Current Year Catastrophe Losses and LAE Ratio	2.2			6.7			3.8			10.0
Prior Years Non-catastrophe Losses and LAE Ratio	(0.4		)	0.4			0.3			1.8
Prior Years Catastrophe Losses and LAE Ratio	—			(0.3		)	(0.4		)	(0.3		)
Combined Ratio as Reported	99.8		%	99.4		%	99.0		%	105.9		%

7

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

	Three Months Ended						Nine Months Ended
(Dollars in Millions)	Sep 30, 2018			Sep 30, 2017			Sep 30, 2018			Sep 30, 2017
Results of Operations
Earned Premiums	$	157.7		$	154.7		$	469.3		$	461.0
Net Investment Income	50.5			55.9			157.9			163.8
Other Income	1.2			0.7			2.9			1.9
Total Revenues	209.4			211.3			630.1			626.7
Policyholders’ Benefits and Incurred Losses and LAE	97.0			96.8			301.1			293.6
Insurance Expenses	79.4			78.5			232.7			233.3
Operating Profit	33.0			36.0			96.3			99.8
Income Tax Expense	(6.3		)	(12.5		)	(19.4		)	(34.3		)
Segment Net Operating Income	$	26.7		$	23.5		$	76.9		$	65.5

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, integration and other 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, Integration and Other Costs may vary significantly between periods and are generally driven by the timing of acquisitions and business decisions which are unrelated to the insurance underwriting process. 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 nine months endedSeptember 30, 2018 and 2017 is presented below.

	Three Months Ended						Nine Months Ended
(Dollars in Millions) (Unaudited)	Sep 30, 2018			Sep 30, 2017			Sep 30, 2018			Sep 30, 2017
Adjusted Consolidated Net Operating Income	$	104.5		$	44.4		$	198.5		$	61.5
Net Income (Loss) From:
Income from Change in Fair Value of Equity Securities	8.7			—			9.6			—
Net Realized Gains on Sales of Investments	2.8			5.3			7.9			29.3
Net Impairment Losses Recognized in Earnings	(1.4		)	(1.9		)	(1.8		)	(6.8		)
Acquisition Related Transaction, Integration and Other Costs	(22.3		)	—			(30.8		)	—
Income from Continuing Operations	$	92.3		$	47.8		$	183.4		$	84.0

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 nine months endedSeptember 30, 2018 and 2017 is presented below.

	Three Months Ended						Nine Months Ended
(Unaudited)	Sep 30, 2018			Sep 30, 2017			Sep 30, 2018			Sep 30, 2017
Diluted Adjusted Consolidated Net Operating Income Per Unrestricted Share	$	1.59		$	0.85		$	3.49		$	1.19
Net Income (Loss) Per Unrestricted Share From:
Income from Change in Fair Value of Equity Securities	0.13			—			0.17			—
Net Realized Gains on Sales of Investments	0.04			0.10			0.14			0.56
Net Impairment Losses Recognized in Earnings	(0.02		)	(0.03		)	(0.03		)	(0.13		)
Acquisition Related Transaction and Integration Costs	(0.34		)	—			(0.54		)	—
Diluted Income from Continuing Operations Per Unrestricted Share	$	1.40		$	0.92		$	3.23		$	1.62

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 September 30, 2018 and December 31, 2017 is presented below.

(Dollars in Millions) (Unaudited)	Sep 30, 2018		Dec 31, 2017
Shareholders’ Equity Excluding Net Unrealized Gains on Fixed Maturities	$	2,927.6	$	1,830.4
Net Unrealized Gains on Fixed Maturities	136.2		285.2
Shareholders’ Equity	$	3,063.8	$	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.

As Adjusted for Acquisition

As Adjusted for Acquisition amounts are non-GAAP financial measures. For three months ended September 30, 2018, as adjusted amounts are computed by subtracting the impact of purchase accounting adjustments from the comparable consolidated GAAP financial measure reported by Kemper. For the three months ended September 30, 2017, as adjusted amounts are computed by adding the historical results of Infinity reported on a GAAP basis to the comparable consolidated GAAP financial measure reported by Kemper. Per share amounts on an acquisition-adjusted basis for the three months ended September 30, 2017 are computed by adjusting the denominator used in the calculation of diluted net income per share by adding the number of shares issued by Kemper on July 2, 2018 in connection with the acquisition to the diluted weighted-average shares outstanding reported by Kemper on a GAAP basis for the three months ended September 30, 2017. The Company believes computing and presenting results on an adjusted basis are useful to investors and are used by management to provide meaningful and comparable year-over-year comparisons.

10

A reconciliation of the As Adjusted for Acquisition non-GAAP financial measures used in this press release to the comparable GAAP financial measure for the three months ended September 30, 2018 is presented below.

(Dollars in Millions, Except Per Share Amounts) (Unaudited)	Kemper Consolidated GAAP Financial Measure		Less Impact of Purchase Accounting Adjustments			As Adjusted for Acquisition
Net Income	$	92.2	$	(39.5	)	$	131.7
Net Income Per Share - Diluted	$	1.40	$	(0.61	)	$	2.01
Property & Casualty Insurance Segment:
Earned Premiums	$	895.2	$	—		$	895.2
Segment Net Income	$	28.2	$	(39.8	)	$	68.0
Non-standard Automobile:
Earned Premiums	$	655.3	$	—		$	655.3

A reconciliation of the As Adjusted for Acquisition non-GAAP financial measures used in this press release to the comparable GAAP financial measure for the three months ended September 30, 2017 is presented below.

(Dollars in Millions) (Unaudited)	Kemper Historical GAAP Financial Measure		Infinity Historical GAAP Financial Measure		As Adjusted for Acquisition
Net Income	$	47.7	$	15.0	$	62.7
Property & Casualty Insurance Segment:
Earned Premiums	$	443.5	$	345.0	$	788.5
Segment Net Income	$	22.9	$	16.7	$	39.6
Non-standard Automobile:
Earned Premiums	$	246.5	$	307.4	$	553.9

A computation of Diluted Net Income Per Share - As Adjusted for Acquisition for the three months ended September 30, 2017 is presented below.

(Dollars and Shares in Millions, Except Per Share Amounts) (Unaudited)	As Adjusted for Acquisition
Dollars in Millions
Net Income - As Adjusted for Acquisition	$	62.7
Less Income from Continuing Operations Attributed to Participating Awards - As Reported	0.4
Diluted Net Income Attributed to Unrestricted Shares - As Adjusted for Acquisition	$	62.3
Shares in Millions
Weighted-average Unrestricted Shares and Equivalent Shares Outstanding Assuming Dilution - As Reported	51.6
Shares Issued in Connection with Acquisition of Infinity	13.2
Weighted-average Unrestricted Shares and Equivalent Shares Outstanding Assuming Dilution - As Adjusted for Acquisition	64.8
In Dollars
Diluted Net Income Per Share - As Adjusted for Acquisition	$	0.96

11

Conference Call

Kemper will discuss its third quarter 2018 results in a conference call on Monday, November 5, 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 third 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

• Services seven million policies 

• Is represented by 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 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 the possibility that the anticipated benefits and synergies from an acquisition may not be fully realized to the extent or within the time frame previously expected and other factors 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 bciesemier@kemper.com

12

EX-99.2

Exhibit 99.2

Investor Supplement

Third 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

Third 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	33-35
As Adjusted - Consolidated Statement of Operations	36
As Adjusted Property & Casualty Insurance Segment Information	37
As Adjusted Non-standard Personal Automobile Insurance	38
As Adjusted Commercial Automobile Insurance	39

Kemper Corporation Consolidated Financial Highlights (Dollars in Millions, Except Per Share Amounts) (Unaudited)
	Three Months Ended																					Nine Months Ended
	Sep 30, 2018			Jun 30, 2018			Mar 31, 2018			Dec 31, 2017			Sep 30, 2017			Jun 30, 2017			Mar 31, 2017			Sep 30, 2018		Sep 30, 2017
For Period Ended
Earned Premiums	$	1,052.9		$	658.1		$	609.8		$	605.9		$	598.2		$	582.5		$	563.4		$	2,320.8	$	1,744.1
Net Investment Income	92.0			78.4			79.2			82.6			85.9			77.1			81.6			249.6		244.6
Other Income	37.8			1.2			1.2			1.1			1.0			1.0			0.9			40.2		2.9
Income from Change in Fair Value of Equity Securities	11.0			0.4			0.7			—			—			—			—			12.1		—
Net Investment Gains (Losses)	1.8			3.8			2.1			7.7			5.2			23.8			5.5			7.7		34.5
Total Revenues	$	1,195.5		$	741.9		$	693.0		$	697.3		$	690.3		$	684.4		$	651.4		$	2,630.4	$	2,026.1
Adjusted Consolidated Net Operating Income (Loss) 1	$	104.5		$	36.5		$	57.5		$	31.0		$	44.4		$	21.0		$	(3.9	)	$	198.5	$	61.5
Income (Loss) from Continuing Operations	$	92.3		$	37.5		$	53.6		$	35.9		$	47.8		$	36.6		$	(0.4	)	$	183.4	$	84.0
Net Income (Loss)	$	92.2		$	37.6		$	53.8		$	36.9		$	47.7		$	36.6		$	(0.3	)	$	183.6	$	84.0
Per Unrestricted Common Share Amounts:
Basic:
Adjusted Consolidated Net Operating Income (Loss) 1	$	1.61		$	0.70		$	1.11		$	0.60		$	0.85		$	0.41		$	(0.08	)	$	3.53	$	1.19
Income (Loss) from Continuing Operations	$	1.42		$	0.73		$	1.03		$	0.69		$	0.92		$	0.71		$	(0.01	)	$	3.26	$	1.63
Net Income (Loss)	$	1.42		$	0.73		$	1.03		$	0.71		$	0.92		$	0.71		$	(0.01	)	$	3.26	$	1.63
Diluted:
Adjusted Consolidated Net Operating Income (Loss) 1	$	1.59		$	0.70		$	1.10		$	0.60		$	0.85		$	0.41		$	(0.08	)	$	3.49	$	1.19
Income (Loss) from Continuing Operations	$	1.40		$	0.73		$	1.02		$	0.69		$	0.92		$	0.71		$	(0.01	)	$	3.23	$	1.62
Net Income (Loss)	$	1.40		$	0.73		$	1.02		$	0.71		$	0.92		$	0.71		$	(0.01	)	$	3.23	$	1.62
Dividends Paid to Shareholders Per Share	$	0.24		$	0.24		$	0.24		$	0.24		$	0.24		$	0.24		$	0.24		$	0.72	$	0.72
At Period End
Total Assets	$	11,772.6		$	8,840.5		$	8,371.0		$	8,376.2		$	8,301.0		$	8,211.4		$	8,306.8
Insurance Reserves	$	5,370.5		$	4,603.2		$	4,539.4		$	4,537.8		$	4,478.3		$	4,466.7		$	4,473.4
Debt	$	1,123.7		$	951.8		$	592.3		$	592.3		$	592.2		$	592.1		$	751.8
Shareholders’ Equity	$	3,063.8		$	2,045.7		$	2,063.8		$	2,115.6		$	2,082.4		$	2,033.4		$	1,983.6
Shareholders’ Equity Excluding Goodwill	$	1,972.6		$	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)	64.738			51.559			51.533			51.462			51.448			51.294			51.295
Book Value Per Share2	$	47.33		$	39.68		$	40.05		$	41.11		$	40.48		$	39.64		$	38.67
Book Value Per Share Excluding Goodwill1,2	$	30.47		$	33.41		$	33.78		$	34.83		$	34.20		$	33.35		$	32.37
Book Value Per Share Excluding Net Unrealized Gains on Fixed Maturities1,2	$	45.22		$	36.85		$	36.35		$	35.57		$	35.87		$	35.13		$	34.81
Debt to Total Capitalization2	26.8		%	31.8		%	22.3		%	21.9		%	22.1		%	22.6		%	27.5		%
Rolling 12 Months Return on 5-point Average Shareholders Equity2,3	9.7		%	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																					Nine Months Ended
	Sep 30, 2018			Jun 30, 2018			Mar 31, 2018			Dec 31, 2017			Sep 30, 2017			Jun 30, 2017			Mar 31, 2017			Sep 30, 2018			Sep 30, 2017
Revenues:
Earned Premiums	$	1,052.9		$	658.1		$	609.8		$	605.9		$	598.2		$	582.5		$	563.4		$	2,320.8		$	1,744.1
Net Investment Income	92.0			78.4			79.2			82.6			85.9			77.1			81.6			249.6			244.6
Other Income	37.8			1.2			1.2			1.1			1.0			1.0			0.9			40.2			2.9
Income from Change in Fair Value of Equity Securities	11.0			0.4			0.7			—			—			—			—			12.1			—
Net Realized Gains on Sales of Investments	3.6			3.8			2.6			11.5			8.1			26.4			10.5			10.0			45.0
Other-than-temporary Impairment Losses:
Total Other-than-temporary Impairment Losses	(1.8		)	—			(0.5		)	(3.7		)	(2.9		)	(2.6		)	(5.2		)	(2.3		)	(10.7		)
Portion of Losses Recognized in Other Comprehensive Income	—			—			—			(0.1		)	—			—			0.2			—			0.2
Net Impairment Losses Recognized in Earnings	(1.8		)	—			(0.5		)	(3.8		)	(2.9		)	(2.6		)	(5.0		)	(2.3		)	(10.5		)
Total Revenues	1,195.5			741.9			693.0			697.3			690.3			684.4			651.4			2,630.4			2,026.1
Expenses:
Policyholders’ Benefits and Incurred Losses and Loss Adjustment Expenses	757.3			499.5			436.9			472.5			440.1			447.4			477.4			1,693.7			1,364.9
Insurance Expenses	296.0			171.2			160.1			159.1			163.7			163.5			158.0			627.3			485.2
Interest and Other Expenses	61.7			25.7			29.0			21.5			18.2			21.4			19.5			116.4			59.1
Total Expenses	1,115.0			696.4			626.0			653.1			622.0			632.3			654.9			2,437.4			1,909.2
Income (Loss) from Continuing Operations before Income Taxes	80.5			45.5			67.0			44.2			68.3			52.1			(3.5		)	193.0			116.9
Income Tax Benefit (Expense)	11.8			(8.0		)	(13.4		)	(8.3		)	(20.5		)	(15.5		)	3.1			(9.6		)	(32.9		)
Income (Loss) from Continuing Operations	92.3			37.5			53.6			35.9			47.8			36.6			(0.4		)	183.4			84.0
Discontinued Operations:
Income (Loss) from Discontinued Operations before Income Taxes	(0.2		)	0.1			0.3			1.5			(0.1		)	—			0.1			0.2			—
Income Tax Expense	0.1			—			(0.1		)	(0.5		)	—			—			—			—			—
Income (Loss) from Discontinued Operations	(0.1		)	0.1			0.2			1.0			(0.1		)	—			0.1			0.2			—
Net Income (Loss)	$	92.2		$	37.6		$	53.8		$	36.9		$	47.7		$	36.6		$	(0.3	)	$	183.6		$	84.0
Income (Loss) from Continuing Operations Per Unrestricted Share:
Basic	$	1.42		$	0.73		$	1.03		$	0.69		$	0.92		$	0.71		$	(0.01	)	$	3.26		$	1.63
Diluted	$	1.40		$	0.73		$	1.02		$	0.69		$	0.92		$	0.71		$	(0.01	)	$	3.23		$	1.62
Net Income (Loss) Per Unrestricted Share:
Basic	$	1.42		$	0.73		$	1.03		$	0.71		$	0.92		$	0.71		$	(0.01	)	$	3.26		$	1.63
Diluted	$	1.40		$	0.73		$	1.02		$	0.71		$	0.92		$	0.71		$	(0.01	)	$	3.23		$	1.62
Dividends Paid to Shareholders Per Share	$	0.24		$	0.24		$	0.24		$	0.24		$	0.24		$	0.24		$	0.24		$	0.72		$	0.72
Weighted Average Unrestricted Common Shares Outstanding (in Millions)	64.580			51.550			51.503			51.456			51.367			51.286			51.273			55.926			51.309

Page 4

Kemper Corporation Consolidated Balance Sheets (Dollars in Millions)  (Unaudited)
	Sep 30, 2018			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	$	6,108.6		$	5,260.3	$	5,301.2	$	5,382.7	$	5,242.8	$	5,263.9	$	5,240.3
Equity Securities at Fair Value	815.8			514.9		568.2		526.0		512.1		500.0		497.4
Equity Securities at Modified Cost	50.9		—	54.1		59.3		—		—		—		—
Equity Method Limited Liability Investments at Cost Plus Cumulative Undistributed Earnings	170.0			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	688.5			169.0		188.8		235.5		239.0		129.9		244.6
Other Investments	412.8			411.7		413.0		422.2		420.0		430.0		437.7
Total Investments	8,246.6			6,580.9		6,699.3		6,804.9		6,651.1		6,553.6		6,667.9
Cash	92.8			649.9		115.4		45.7		137.6		160.9		120.0
Receivables from Policyholders	1,029.9			407.5		386.0		366.0		374.8		353.7		347.9
Other Receivables	243.1			189.2		187.9		194.3		182.4		190.1		206.1
Deferred Policy Acquisition Costs	447.4			388.9		378.0		365.3		361.7		348.5		339.9
Goodwill	1,091.2			323.0		323.0		323.0		323.0		323.0		323.0
Current Income Tax Assets	58.1			0.9		—		6.1		0.9		7.4		10.1
Deferred Income Tax Assets	—			10.6		—		—		—		5.4		26.4
Other Assets	563.5			289.6		281.4		270.9		269.5		268.8		265.5
Total Assets	$	11,772.6		$	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	$	3,551.4		$	3,543.5	$	3,534.3	$	3,521.0	$	3,509.8	$	3,499.7	$	3,489.0
Property and Casualty	1,819.1			1,059.7		1,005.1		1,016.8		968.5		967.0		984.4
Total Insurance Reserves	5,370.5			4,603.2		4,539.4		4,537.8		4,478.3		4,466.7		4,473.4
Unearned Premiums	1,470.9			723.8		690.2		653.9		672.0		650.5		640.1
Current Income Tax Liabilities	—			—		0.2		—		—		—		—
Deferred Income Tax Liabilities	40.4			—		1.1		14.8		11.9		—		—
Liability for Unrecognized Tax Benefits	4.5			9.2		8.1		8.1		6.8		7.0		6.9
Long-term Debt, Current and Non-current, at Amortized Cost	1,123.7			951.8		592.3		592.3		592.2		592.1		751.8
Accrued Expenses and Other Liabilities	698.8			506.8		475.9		453.7		457.4		461.7		451.0
Total Liabilities	8,708.8			6,794.8		6,307.2		6,260.6		6,218.6		6,178.0		6,323.2
Shareholders’ Equity:
Common Stock	6.5			5.2		5.1		5.1		5.1		5.1		5.1
Paid-in Capital	1,661.3			681.5		676.9		673.1		672.1		666.9		663.7
Retained Earnings	1,365.1			1,289.4		1,264.9		1,243.0		1,218.8		1,184.8		1,160.7
Accumulated Other Comprehensive Income	30.9			69.6		116.9		194.4		186.4		176.6		154.1
Total Shareholders’ Equity	3,063.8			2,045.7		2,063.8		2,115.6		2,082.4		2,033.4		1,983.6
Total Liabilities and Shareholders’ Equity	$	11,772.6		$	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)
	Nine Months Ended
	Sep 30, 2018			Sep 30, 2017
Operating Activities:
Net Income	$	183.6		$	84.0
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities:
Amortization of Intangible Assets Acquired	106.1			3.9
Equity in Earnings of Equity Method Limited Liability Investments	(8.1		)	(21.9		)
Distribution of Accumulated Earnings of Equity Method Limited Liability Investments	9.2			15.9
Decrease (Increase) in Value of Fair Value Option Investments Reported in Net Investment Income	—			(0.9		)
Decrease (Increase) in Value of Equity Securities at Fair Value	(12.1		)	—
Amortization of Investment Securities and Depreciation of Investment Real Estate	6.9			12.8
Net Realized Gains on Sales of Investments	(10.0		)	(45.0		)
Net Impairment Losses Recognized in Earnings	2.3			10.5
Depreciation of Property and Equipment	12.2			9.8
Increase in Receivables	(102.3		)	(27.2		)
Increase in Deferred Policy Acquisition Costs	(82.1		)	(29.6		)
Increase in Insurance Reserves	131.8			71.4
Increase in Unearned Premiums	102.3			53.3
Change in Income Taxes	4.6			27.4
Change in Accrued Expenses and Other Liabilities	(10.5		)	(1.5		)
Other, Net	11.4			1.6
Net Cash Provided by Operating Activities (Carryforward to page 7)	345.3			164.5

Page 6

Kemper Corporation Consolidated Statements of Cash Flows (Dollars in Millions)  (Unaudited)
	Nine Months Ended
	Sep 30, 2018			Sep 30, 2017
Net Cash Provided by Operating Activities (Carryforward from page 6)	345.3			164.5
Investing Activities:
Sales, Paydowns and Maturities of Fixed Maturities	2,133.7			367.7
Purchases of Fixed Maturities	(1,520.7		)	(401.8		)
Sales of Equity Securities	186.6			230.3
Purchases of Equity Securities	(344.3		)	(233.5		)
Return of Investment of Equity Method Limited Liability Investments	7.3			36.3
Acquisitions of Equity Method Limited Liability Investments	(17.4		)	(14.5		)
Sales of Fair Value Option Investments	—			42.2
Decrease (Increase) in Short-term Investments	(351.6		)	40.4
Improvements of Investment Real Estate	(1.0		)	(1.3		)
Sales of Investment Real Estate	—			26.2
Increase in Other Investments	0.6			(1.3		)
Acquisition of Software	(53.9		)	(28.8		)
Other, Net	4.6			(4.4		)
Net Cash Provided (Used) by Investing Activities	(516.7		)	50.5
Financing Activities:
Net Proceeds from Issuances of Long-term Debt	249.0			200.2
Repayments of Long-term Debt	—			(360.0		)
Dividends and Dividend Equivalents Paid	(40.7		)	(37.1		)
Proceeds from Advances from FHLB	10.0			—
Cash Exercise of Stock Options	0.7			3.7
Other, Net	(0.5		)	0.1
Net Cash Used by Financing Activities	218.5			(193.1		)
Increase (Decrease) in Cash	47.1			21.9
Cash, Beginning of Year	45.7			115.7
Cash, End of Period	$	92.8		$	137.6

Page 7

Kemper Corporation Capital Metrics (Dollars and Shares in Millions, Except Per Share Amounts) (Unaudited)
	Three Months Ended
	Sep 30, 2018			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	$	3,063.8		$	2,045.7		$	2,063.8		$	2,115.6		$	2,082.4		$	2,033.4		$	1,983.6
Less: Goodwill	(1,091.2		)	(323.0		)	(323.0		)	(323.0		)	(323.0		)	(323.0		)	(323.0		)
Shareholders’ Equity Excluding Goodwill	$	1,972.6		$	1,722.7		$	1,740.8		$	1,792.6		$	1,759.4		$	1,710.4		$	1,660.6
Shareholders’ Equity	$	3,063.8		$	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	(136.2		)	(145.6		)	(190.5		)	(285.2		)	(237.1		)	(231.4		)	(198.2		)
Shareholders’ Equity Excluding Net Unrealized Gains on Fixed Maturities	$	2,927.6		$	1,900.1		$	1,873.3		$	1,830.4		$	1,845.3		$	1,802.0		$	1,785.4
Denominator
Common Shares Issued and Outstanding	64.738			51.559			51.533			51.462			51.448			51.294			51.295
Book Value Per Share	$	47.33		$	39.68		$	40.05		$	41.11		$	40.48		$	39.64		$	38.67
Book Value Per Share Excluding Goodwill	$	30.47		$	33.41		$	33.78		$	34.83		$	34.20		$	33.35		$	32.37
Book Value Per Share Excluding Unrealized on Fixed Maturities	$	45.22		$	36.85		$	36.35		$	35.57		$	35.87		$	35.13		$	34.81
Return on Shareholders’ Equity
Numerator
Rolling 12 Months Net Income	$	220.5		$	176.0		$	175.0		$	120.9		$	115.2		$	51.2		$	18.6
Denominator (5-point Average)
5-point Average Shareholders’ Equity	$	2,274.3		$	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)	9.7		%	8.5		%	8.5		%	5.9		%	5.7		%	2.5		%	0.9		%
Debt and Total Capitalization
Debt	$	1,123.7		$	951.8		$	592.3		$	592.3		$	592.2		$	592.1		$	751.8
Shareholders’ Equity	3,063.8			2,045.7			2,063.8			2,115.6			2,082.4			2,033.4			1,983.6
Total Capitalization	$	4,187.5		$	2,997.5		$	2,656.1		$	2,707.9		$	2,674.6		$	2,625.5		$	2,735.4
Ratio of Debt to Shareholders’ Equity	36.7		%	46.5		%	28.7		%	28.0		%	28.4		%	29.1		%	37.9		%
Ratio of Debt to Total Capitalization	26.8		%	31.8		%	22.3		%	21.9		%	22.1		%	22.6		%	27.5		%
Parent Company Liquidity
Kemper Holding Company Cash and Investments	$	91.3		$	708.6		$	184.4		$	197.3		$	188.2		$	188.4		$	288.2
Borrowings Available Under Credit Agreement	300.0			300.0			225.0			225.0			225.0			225.0			225.0
Parent Company Liquidity	$	391.3		$	1,008.6		$	409.4		$	422.3		$	413.2		$	413.4		$	513.2
Capital Returned to Shareholders
Cash Dividends Paid	15.7			12.4			12.5			12.4			12.4			12.4			12.3
Total Capital Returned to Shareholders	$	15.7		$	12.4		$	12.5		$	12.4		$	12.4		$	12.4		$	12.3

Page 8

Kemper Corporation Debt Outstanding and Ratings (Dollars in Millions) (Unaudited)
	Sep 30, 2018		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	$	448.4	$	448.2	$	448.1	$	448.1	$	448.1	$	448.0	$	247.8
5.0% Senior Notes due September 19, 2022	281.7		—		—		—		—		—		—
7.375% Subordinated Debentures due February 27, 2054 at Amortized Cost	144.2		144.2		144.2		144.2		144.1		144.1		144.1
Term Loan due June 29, 2020	249.4		249.4		—		—		—		—		—
Debt Outstanding	$	1,123.7	$	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	10.0		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
Infinity Property and Casualty	A		A3		A-		NR

NR - Not Rated

Page 9

Kemper Corporation Segment Revenues (Dollars in Millions) (Unaudited)
	Three Months Ended																				Nine Months Ended
	Sep 30, 2018			Jun 30, 2018		Mar 31, 2018			Dec 31, 2017			Sep 30, 2017			Jun 30, 2017			Mar 31, 2017			Sep 30, 2018			Sep 30, 2017
Revenues:
Property & Casualty Insurance:
Earned Premiums:
Personal Automobile	$	766.7		$	416.2	$	371.1		$	364.3		$	353.0		$	339.1		$	320.7		$	1,554.0		$	1,012.8
Homeowners	62.5			62.2		61.8			65.2			66.7			66.6			66.3			186.5			199.6
Other Personal	10.1			10.2		10.1			10.5			10.7			10.8			10.7			30.4			32.2
Total Personal	839.3			488.6		443.0			440.0			430.4			416.5			397.7			1,770.9			1,244.6
Commercial Automobile	55.9			12.5		12.2			12.9			13.1			12.7			12.7			80.6			38.5
Total Earned Premiums	895.2			501.1		455.2			452.9			443.5			429.2			410.4			1,851.5			1,283.1
Net Investment Income	34.0			22.9		22.5			21.8			27.8			20.6			24.1			79.4			72.5
Other Income	0.9			0.4		0.3			0.2			0.4			0.3			0.2			1.6			0.9
Total Property & Casualty Insurance	930.1			524.4		478.0			474.9			471.7			450.1			434.7			1,932.5			1,356.5
Life & Health Insurance:
Earned Premiums:
Life	95.2			95.4		93.7			94.1			94.5			95.4			95.7			284.3			285.6
Accident and Health	44.9			43.8		43.3			41.1			42.0			39.5			39.1			132.0			120.6
Property	17.6			17.8		17.6			17.8			18.2			18.4			18.2			53.0			54.8
Total Earned Premiums	157.7			157.0		154.6			153.0			154.7			153.3			153.0			469.3			461.0
Net Investment Income	50.5			54.1		53.3			57.7			55.9			54.9			53.0			157.9			163.8
Other Income	1.2			0.9		0.8			0.7			0.7			0.6			0.6			2.9			1.9
Total Life & Health Insurance	209.4			212.0		208.7			211.4			211.3			208.8			206.6			630.1			626.7
Total Segment Revenues	1,139.5			736.4		686.7			686.3			683.0			658.9			641.3			2,562.6			1,983.2
Income from Change in Fair Value of Equity Securities	11.0			0.4		0.7			—			—			—			—			12.1			—
Net Realized Gains on Sales of Investments	3.6			3.8		2.6			11.5			8.1			26.4			10.5			10.0			45.0
Net Impairment Losses Recognized in Earnings	(1.8		)	—		(0.5		)	(3.8		)	(2.9		)	(2.6		)	(5.0		)	(2.3		)	(10.5		)
Other	43.2			1.3		3.5			3.3			2.1			1.7			4.6			48.0			8.4
Total Revenues	$	1,195.5		$	741.9	$	693.0		$	697.3		$	690.3		$	684.4		$	651.4		$	2,630.4		$	2,026.1

Page 10

Kemper Corporation Segment Operating Results (Dollars in Millions)  (Unaudited)
	Three Months Ended																					Nine Months Ended
	Sep 30, 2018			Jun 30, 2018			Mar 31, 2018			Dec 31, 2017			Sep 30, 2017			Jun 30, 2017			Mar 31, 2017			Sep 30, 2018			Sep 30, 2017
Segment Operating Profit (Loss):
Property & Casualty Insurance	$	34.2		$	18.2		$	44.5		$	0.8		$	30.8		$	4.2		$	(37.2	)	$	96.9		$	(2.2	)
Life & Health Insurance	33.0			33.4			29.9			38.7			36.0			31.2			32.6			96.3			99.8
Total Segment Operating Profit (Loss)	67.2			51.6			74.4			39.5			66.8			35.4			(4.6		)	193.2			97.6
Corporate and Other Operating Loss	28.7			(6.7		)	(4.0		)	(3.0		)	(3.7		)	(7.1		)	(4.4		)	18.0			(15.2		)
Total Operating Profit (Loss)	95.9			44.9			70.4			36.5			63.1			28.3			(9.0		)	211.2			82.4
Income from Change in Fair Value of Equity Securities	11.0			0.4			0.7			—			—			—			—			12.1			—
Net Realized Gains on Sales of Investments	3.6			3.8			2.6			11.5			8.1			26.4			10.5			10.0			45.0
Net Impairment Losses Recognized in Earnings	(1.8		)	—			(0.5		)	(3.8		)	(2.9		)	(2.6		)	(5.0		)	(2.3		)	(10.5		)
Acquisition Related Transaction Integration and Other Costs	(28.2		)	(8.5		)	(6.2		)	—			—			—			—			(38.0		)	—
Income (Loss) from Continuing Operations before Income Taxes	$	80.5		$	40.6		$	67.0		$	44.2		$	68.3		$	52.1		$	(3.5	)	$	193.0		$	116.9
Segment Net Operating Income (Loss):
Property & Casualty Insurance	$	28.2		$	15.2		$	36.0		$	2.1		$	22.9		$	4.9		$	(22.1	)	$	79.4		$	5.7
Life & Health Insurance	26.7			26.4			23.8			25.3			23.5			20.5			21.5			76.9			65.5
Total Segment Net Operating Income (Loss)	54.9			41.6			59.8			27.4			46.4			25.4			(0.6		)	156.3			71.2
Corporate and Other Net Operating Income (Loss) From:
Effects of Tax Law Changes	26.0			—			—			7.4			—			—			—			26.0			—
Other	(12.1		)	(5.1		)	(2.3		)	(3.8		)	(2.0		)	(4.4		)	(3.3		)	(19.5		)	(9.7		)
Corporate and Other Net Operating Income (Loss)	49.6			(5.1		)	(2.3		)	3.6			(2.0		)	(4.4		)	(3.3		)	42.2			(9.7		)
Adjusted Consolidated Net Operating Income (Loss)	104.5			36.5			57.5			31.0			44.4			21.0			(3.9		)	198.5			61.5
Net Income (Loss) From:
Change in Fair Value of Equity Securities	8.7			0.3			0.6			—			—			—			—			9.6			—
Net Realized Gains on Sales of Investments	2.8			3.0			2.1			7.4			5.3			17.2			6.8			7.9			29.3
Net Impairment Losses Recognized in Earnings	(1.4		)	—			(0.4		)	(2.5		)	(1.9		)	(1.6		)	(3.3		)	(1.8		)	(6.8		)
Acquisition Related Transaction, Integration and Other Costs	(22.3		)	(2.3		)	(6.2		)	—			—			—			—			(30.8		)	—
Income (Loss) from Continuing Operations	$	92.3		$	37.5		$	53.6		$	35.9		$	47.8		$	36.6		$	(0.4	)	$	183.4		$	84.0

Page 11

Kemper Corporation Segment Operating Results (Dollars in Millions)  (Unaudited)
	Three Months Ended																Nine Months Ended
	Sep 30, 2018			Jun 30, 2018			Mar 31, 2018		Dec 31, 2017		Sep 30, 2017		Jun 30, 2017		Mar 31, 2017		Sep 30, 2018			Sep 30, 2017
Earned Premiums by Product:
Personal Automobile	$	766.7		$	416.2		$	371.1	$	364.3	$	353.0	$	339.1	$	320.7	$	1,554.0		$	1,012.8
Homeowners	62.5			62.2			61.8		65.2		66.7		66.6		66.3		186.5			199.6
Other Personal Property and Casualty Insurance	27.7			28.0			27.7		28.3		28.9		29.2		28.9		83.4			87.0
Commercial Automobile	55.9			12.5			12.2		12.9		13.1		12.7		12.7		80.6			38.5
Life	95.2			95.4			93.7		94.1		94.5		95.4		95.7		284.3			285.6
Accident and Health	44.9			43.8			43.3		41.1		42.0		39.5		39.1		132.0			120.6
Total Earned Premiums	$	1,052.9		$	658.1		$	609.8	$	605.9	$	598.2	$	582.5	$	563.4	$	2,320.8		$	1,744.1
Net Investment Income by Segment:
Property & Casualty Insurance:
Equity Method Limited Liability Investments	$	3.8		$	2.2		$	4.3	$	1.5	$	7.3	$	1.8	$	4.6	$	10.3		$	13.7
All Other Net Investment Income	30.2			20.7			18.2		20.3		20.5		18.8		19.5		69.1			58.8
Net Investment Income	34.0			22.9			22.5		21.8		27.8		20.6		24.1		79.4			72.5
Life & Health Insurance:
Equity Method Limited Liability Investments	(3.7		)	(0.9		)	2.4		1.3		3.5		2.0		1.7		(2.2		)	7.2
All Other Net Investment Income	54.2			55.0			50.9		56.4		52.4		52.9		51.3		160.1			156.6
Net Investment Income	50.5			54.1			53.3		57.7		55.9		54.9		53.0		157.9			163.8
Total Segment Net Investment Income	84.5			77.0			75.8		79.5		83.7		75.5		77.1		237.3			236.3
Unallocated Net Investment Income:
Equity Method Limited Liability Investments	(0.5		)	0.1			0.4		0.1		0.3		0.2		0.5		—			1.0
All Other Net Investment Income	8.0			1.3			3.0		3.0		1.9		1.4		4.0		12.3			7.3
Unallocated Net Investment Income	7.5			1.4			3.4		3.1		2.2		1.6		4.5		12.3			8.3
Net Investment Income	$	92.0		$	78.4		$	79.2	$	82.6	$	85.9	$	77.1	$	81.6	$	249.6		$	244.6

Page 12

Kemper Corporation Catastrophe Frequency and Severity (Dollars in Millions) (Unaudited)
	Nine Months Ended Sep 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	36	$	26.1	23	$	1.7	37	$	27.8
$5 - $10	3	20.8		—	—		3	20.8
$10 - $15	2	22.7		—	—		2	22.7
$15 - $20	—	—		—	—		—	—
$20 - $25	—	—		—	—		—	—
Greater Than $25	—	—		—	—		—	—
Total	41	$	69.6	23	$	1.7	42	$	71.3
	Nine Months Ended Sep 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	30	$	53.7	26	$	5.9	29	$	52.1
$5 - $10	1	5.0		—	—		2	10.4
$10 - $15	2	24.3		—	—		1	10.3
$15 - $20	—	—		—	—		1	16.1
$20 - $25	—	—		—	—		—	—
Greater Than $25	1	45.2		—	—		1	45.2
Total	34	$	128.2	26	$	5.9	34	$	134.1

Page 13

Kemper Corporation Property & Casualty Insurance Segment - Results of Operations and Selected Financial Information (Dollars in Millions) (Unaudited)
	Three Months Ended																					Nine Months Ended
	Sep 30, 2018			Jun 30, 2018			Mar 31, 2018			Dec 31, 2017			Sep 30, 2017			Jun 30, 2017			Mar 31, 2017			Sep 30, 2018			Sep 30, 2017
Results of Operations
Net Premiums Written	$	931.0		$	536.9		$	488.9		$	433.3		$	466.7		$	440.7		$	428.9		$	1,956.8		$	1,336.3
Earned Premiums	895.2			501.1			455.2			452.9			443.5			429.2			410.4			1,851.5			1,283.1
Net Investment Income	34.0			22.9			22.5			21.8			27.8			20.6			24.1			79.4			72.5
Other Income	0.9			0.4			0.3			0.2			0.4			0.3			0.2			1.6			0.9
Total Revenues	930.1			524.4			478.0			474.9			471.7			450.1			434.7			1,932.5			1,356.5
Incurred Losses and LAE related to:
Current Year:
Non-catastrophe Losses and LAE	644.2			355.0			326.5			327.0			313.1			308.8			302.6			1,325.7			924.5
Catastrophe Losses and LAE	19.7			42.4			7.5			50.8			29.8			34.5			63.9			69.6			128.2
Prior Years:
Non-catastrophe Losses and LAE	(3.5		)	4.7			3.7			1.5			1.6			9.6			11.8			4.9			23.0
Catastrophe Losses and LAE	(0.2		)	(1.8		)	(5.7		)	(0.6		)	(1.2		)	(2.0		)	(1.2		)	(7.7		)	(4.4		)
Total Incurred Losses and LAE	660.2			400.3			332.0			378.7			343.3			350.9			377.1			1,392.5			1,071.3
Insurance Expenses	234.0			105.9			101.5			95.4			97.6			95.0			94.8			441.4			287.4
Other Expenses	1.7			—			—			—			—			—			—			1.7			—
Operating Profit (Loss)	34.2			18.2			44.5			0.8			30.8			4.2			(37.2		)	96.9			(2.2		)
Income Tax Benefit (Expense)	(6.0		)	(3.0		)	(8.5		)	1.3			(7.9		)	0.7			15.1			(17.5		)	7.9
Segment Net Operating Income (Loss)	$	28.2		$	15.2		$	36.0		$	2.1		$	22.9		$	4.9		$	(22.1	)	$	79.4		$	5.7
Ratios Based On Earned Premiums
Current Year Non-catastrophe Losses and LAE Ratio	71.9		%	70.9		%	71.8		%	72.2		%	70.6		%	72.1		%	73.7		%	71.5		%	72.0		%
Current Year Catastrophe Losses and LAE Ratio	2.2			8.5			1.6			11.2			6.7			8.0			15.6			3.8			10.0
Prior Years Non-catastrophe Losses and LAE Ratio	(0.4		)	0.9			0.8			0.3			0.4			2.2			2.9			0.3			1.8
Prior Years Catastrophe Losses and LAE Ratio	—			(0.4		)	(1.3		)	(0.1		)	(0.3		)	(0.5		)	(0.3		)	(0.4		)	(0.3		)
Total Incurred Loss and LAE Ratio	73.7			79.9			72.9			83.6			77.4			81.8			91.9			75.2			83.5
Insurance Expense Ratio	26.1			21.1			22.3			21.1			22.0			22.1			23.1			23.8			22.4
Combined Ratio	99.8		%	101.0		%	95.2		%	104.7		%	99.4		%	103.9		%	115.0		%	99.0		%	105.9		%
Underlying Combined Ratio 1
Current Year Non-catastrophe Losses and LAE Ratio	71.9		%	70.9		%	71.8		%	72.2		%	70.6		%	72.1		%	73.7		%	71.5		%	72.0		%
Insurance Expense Ratio	26.1			21.1			22.3			21.1			22.0			22.1			23.1			23.8			22.4
Underlying Combined Ratio	98.0		%	92.0		%	94.1		%	93.3		%	92.6		%	94.2		%	96.8		%	95.3		%	94.4		%
Non-GAAP Measure Reconciliation
Underlying Combined Ratio	98.0		%	92.0		%	94.1		%	93.3		%	92.6		%	94.2		%	96.8		%	95.3		%	94.4		%
Current Year Catastrophe Losses and LAE Ratio	2.2			8.5			1.6			11.2			6.7			8.0			15.6			3.8			10.0
Prior Years Non-catastrophe Losses and LAE Ratio	(0.4		)	0.9			0.8			0.3			0.4			2.2			2.9			0.3			1.8
Prior Years Catastrophe Losses and LAE Ratio	—			(0.4		)	(1.3		)	(0.1		)	(0.3		)	(0.5		)	(0.3		)	(0.4		)	(0.3		)
Combined Ratio as Reported	99.8		%	101.0		%	95.2		%	104.7		%	99.4		%	103.9		%	115.0		%	99.0		%	105.9		%
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 14

Kemper Corporation Property & Casualty Insurance Segment - Results of Operations and Selected Financial Information (continued) (Dollars in Millions) (Unaudited)
	Sep 30, 2018		Jun 30, 2018		Mar 31, 2018		Dec 31, 2017		Sep 30, 2017		Jun 30, 2017		Mar 31, 2017
Insurance Reserves:
Automobile	$	1,623.1	$	845.9	$	801.6	$	795.9	$	769.0	$	768.3	$	764.0
Homeowners	139.4		137.2		124.6		139.7		111.8		110.7		133.6
Other Personal	18.6		38.6		39.4		40.7		41.2		43.5		40.3
Insurance Reserves	$	1,781.1	$	1,021.7	$	965.6	$	976.3	$	922.0	$	922.5	$	937.9
Insurance Reserves:
Loss Reserves:
Case	$	905.5	$	608.6	$	580.7	$	602.4	$	570.9	$	588.8	$	599.7
Incurred but Not Reported	582.1		267.8		247.8		239.3		219.2		201.9		204.8
Total Loss Reserves	1,487.6		876.4		828.5		841.7		790.1		790.7		804.5
LAE Reserves	293.5		145.3		137.1		134.6		131.9		131.8		133.4
Insurance Reserves	$	1,781.1	$	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																					Nine Months Ended
	Sep 30, 2018			Jun 30, 2018			Mar 31, 2018			Dec 31, 2017			Sep 30, 2017			Jun 30, 2017			Mar 31, 2017			Sep 30, 2018			Sep 30, 2017
Results of Operations
Net Premiums Written	$	119.3		$	120.9		$	106.2		$	103.0		$	112.6		$	108.7		$	100.1		$	346.4		$	321.4
Earned Premiums	$	111.4		$	108.7		$	104.9		$	106.5		$	106.5		$	105.5		$	104.3		$	325.0		$	316.3
Net Investment Income	6.8			6.0			5.9			5.7			7.8			5.6			6.6			18.7			20.0
Total Revenues	118.2			114.7			110.8			112.2			114.3			111.1			110.9			343.7			336.3
Incurred Losses and LAE related to:
Current Year:
Non-catastrophe Losses and LAE	74.9			74.7			73.6			81.1			74.2			76.8			76.9			223.2			227.9
Catastrophe Losses and LAE	2.3			3.9			0.6			(0.1		)	2.8			3.9			4.7			6.8			11.4
Prior Years:
Non-catastrophe Losses and LAE	(2.6		)	(1.4		)	0.5			1.3			0.8			6.6			10.8			(3.5		)	18.2
Catastrophe Losses and LAE	—			(0.1		)	—			—			—			(0.2		)	—			(0.1		)	(0.2		)
Total Incurred Losses and LAE	74.6			77.1			74.7			82.3			77.8			87.1			92.4			226.4			257.3
Insurance Expenses	34.0			32.1			31.7			29.9			31.5			32.0			32.2			97.8			95.7
Operating Profit (Loss)	9.6			5.5			4.4			—			5.0			(8.0		)	(13.7		)	19.5			(16.7		)
Income Tax Benefit (Expense)	(1.6		)	(1.0		)	(0.7		)	0.5			(3.5		)	3.4			5.3			(3.3		)	5.2
Total Product Line Net Operating Income (Loss)	$	8.0		$	4.5		$	3.7		$	0.5		$	1.5		$	(4.6	)	$	(8.4	)	$	16.2		$	(11.5	)
Ratios Based On Earned Premiums
Current Year Non-catastrophe Losses and LAE Ratio	67.2		%	68.7		%	70.1		%	76.2		%	69.7		%	72.8		%	73.7		%	68.7		%	72.0		%
Current Year Catastrophe Losses and LAE Ratio	2.1			3.6			0.6			(0.1		)	2.6			3.7			4.5			2.1			3.6
Prior Years Non-catastrophe Losses and LAE Ratio	(2.3		)	(1.3		)	0.5			1.2			0.8			6.3			10.4			(1.1		)	5.8
Prior Years Catastrophe Losses and LAE Ratio	—			(0.1		)	—			—			—			(0.2		)	—			—			(0.1		)
Total Incurred Loss and LAE Ratio	67.0			70.9			71.2			77.3			73.1			82.6			88.6			69.7			81.3
Insurance Expense Ratio	30.5			29.5			30.2			28.1			29.6			30.3			30.9			30.1			30.3
Combined Ratio	97.5		%	100.4		%	101.4		%	105.4		%	102.7		%	112.9		%	119.5		%	99.8		%	111.6		%
Underlying Combined Ratio 1
Current Year Non-catastrophe Losses and LAE Ratio	67.2		%	68.7		%	70.1		%	76.2		%	69.7		%	72.8		%	73.7		%	68.7		%	72.0		%
Insurance Expense Ratio	30.5			29.5			30.2			28.1			29.6			30.3			30.9			30.1			30.3
Underlying Combined Ratio	97.7		%	98.2		%	100.3		%	104.3		%	99.3		%	103.1		%	104.6		%	98.8		%	102.3		%
Non-GAAP Measure Reconciliation
Underlying Combined Ratio	97.7		%	98.2		%	100.3		%	104.3		%	99.3		%	103.1		%	104.6		%	98.8		%	102.3		%
Current Year Catastrophe Losses and LAE Ratio	2.1			3.6			0.6			(0.1		)	2.6			3.7			4.5			2.1			3.6
Prior Years Non-catastrophe Losses and LAE Ratio	(2.3		)	(1.3		)	0.5			1.2			0.8			6.3			10.4			(1.1		)	5.8
Prior Years Catastrophe Losses and LAE Ratio	—			(0.1		)	—			—			—			(0.2		)	—			—			(0.1		)
Combined Ratio as Reported	97.5		%	100.4		%	101.4		%	105.4		%	102.7		%	112.9		%	119.5		%	99.8		%	111.6		%
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 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																					Nine Months Ended
	Sep 30, 2018			Jun 30, 2018			Mar 31, 2018			Dec 31, 2017			Sep 30, 2017			Jun 30, 2017			Mar 31, 2017			Sep 30, 2018			Sep 30, 2017
Results of Operations
Net Premiums Written	$	679.1		$	325.4		$	304.9		$	249.8		$	259.8		$	237.5		$	245.2		$	1,309.4		$	742.5
Earned Premiums	$	655.3		$	307.5		$	266.2		$	257.8		$	246.5		$	233.6		$	216.4		$	1,229.0		$	696.5
Net Investment Income	15.9			8.6			8.2			7.8			8.9			7.2			8.2			32.7			24.3
Other Income	0.9			0.3			0.3			0.2			0.3			0.3			0.2			1.5			0.8
Total Revenues	672.1			316.4			274.7			265.8			255.7			241.1			224.8			1,263.2			721.6
Incurred Losses and LAE related to:
Current Year:
Non-catastrophe Losses and LAE	485.6			237.8			202.8			204.6			185.5			183.9			176.4			926.2			545.8
Catastrophe Losses and LAE	1.3			1.7			0.2			(0.8		)	1.5			2.4			1.7			3.2			5.6
Prior Years:
Non-catastrophe Losses and LAE	(1.1		)	4.2			0.2			2.8			2.1			(1.0		)	(0.8		)	3.3			0.3
Catastrophe Losses and LAE	—			—			(0.2		)	—			(0.1		)	—			(0.1		)	(0.2		)	(0.2		)
Total Incurred Losses and LAE	485.8			243.7			203.0			206.6			189.0			185.3			177.2			932.5			551.5
Insurance Expenses	160.8			46.7			45.2			41.5			39.7			36.9			35.5			252.7			112.1
Other Expenses	1.6			—			—			—			—			—			—			1.6			—
Operating Profit (Loss)	23.9			26.0			26.5			17.7			27.0			18.9			12.1			76.4			58.0
Income Tax Benefit (Expense)	(4.5		)	(5.3		)	(5.2		)	(5.4		)	(8.5		)	(5.7		)	(3.4		)	(15.0		)	(17.6		)
Total Product Line Net Operating Income (Loss)	$	19.4		$	20.7		$	21.3		$	12.3		$	18.5		$	13.2		$	8.7		$	61.4		$	40.4
Ratios Based On Earned Premiums
Current Year Non-catastrophe Losses and LAE Ratio	74.1		%	77.3		%	76.2		%	79.3		%	75.2		%	78.7		%	81.5		%	75.3		%	78.4		%
Current Year Catastrophe Losses and LAE Ratio	0.2			0.6			0.1			(0.3		)	0.6			1.0			0.8			0.3			0.8
Prior Years Non-catastrophe Losses and LAE Ratio	(0.2		)	1.4			0.1			1.1			0.9			(0.4		)	(0.4		)	0.3			—
Prior Years Catastrophe Losses and LAE Ratio	—			—			(0.1		)	—			—			—			—			—			—
Total Incurred Loss and LAE Ratio	74.1			79.3			76.3			80.1			76.7			79.3			81.9			75.9			79.2
Insurance Expense Ratio	24.5			15.2			17.0			16.1			16.1			15.8			16.4			20.6			16.1
Combined Ratio	98.6		%	94.5		%	93.3		%	96.2		%	92.8		%	95.1		%	98.3		%	96.5		%	95.3		%
Underlying Combined Ratio 1
Current Year Non-catastrophe Losses and LAE Ratio	74.1		%	77.3		%	76.2		%	79.3		%	75.2		%	78.7		%	81.5		%	75.3		%	78.4		%
Insurance Expense Ratio	24.5			15.2			17.0			16.1			16.1			15.8			16.4			20.6			16.1
Underlying Combined Ratio	98.6		%	92.5		%	93.2		%	95.4		%	91.3		%	94.5		%	97.9		%	95.9		%	94.5		%
Non-GAAP Measure Reconciliation
Underlying Combined Ratio	98.6		%	92.5		%	93.2		%	95.4		%	91.3		%	94.5		%	97.9		%	95.9		%	94.5		%
Current Year Catastrophe Losses and LAE Ratio	0.2			0.6			0.1			(0.3		)	0.6			1.0			0.8			0.3			0.8
Prior Years Non-catastrophe Losses and LAE Ratio	(0.2		)	1.4			0.1			1.1			0.9			(0.4		)	(0.4		)	0.3			—
Prior Years Catastrophe Losses and LAE Ratio	—			—			(0.1		)	—			—			—			—			—			—
Combined Ratio as Reported	98.6		%	94.5		%	93.3		%	96.2		%	92.8		%	95.1		%	98.3		%	96.5		%	95.3		%
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 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																					Nine Months Ended
	Sep 30, 2018			Jun 30, 2018			Mar 31, 2018			Dec 31, 2017			Sep 30, 2017			Jun 30, 2017			Mar 31, 2017			Sep 30, 2018			Sep 30, 2017
Results of Operations
Net Premiums Written	$	798.4		$	446.3		$	411.1		$	352.8		$	372.4		$	346.2		$	345.3		$	1,655.8		$	1,063.9
Earned Premiums	$	766.7		$	416.2		$	371.1		$	364.3		$	353.0		$	339.1		$	320.7		$	1,554.0		$	1,012.8
Net Investment Income	22.7			14.6			14.1			13.5			16.7			12.8			14.8			51.4			44.3
Other Income	0.9			0.3			0.3			0.2			0.3			0.3			0.2			1.5			0.8
Total Revenues	790.3			431.1			385.5			378.0			370.0			352.2			335.7			1,606.9			1,057.9
Incurred Losses and LAE related to:
Current Year:
Non-catastrophe Losses and LAE	560.5			312.5			276.4			285.7			259.7			260.7			253.3			1,149.4			773.7
Catastrophe Losses and LAE	3.6			5.6			0.8			(0.9		)	4.3			6.3			6.4			10.0			17.0
Prior Years:
Non-catastrophe Losses and LAE	(3.7		)	2.8			0.7			4.1			2.9			5.6			10.0			(0.2		)	18.5
Catastrophe Losses and LAE	—			(0.1		)	(0.2		)	—			(0.1		)	(0.2		)	(0.1		)	(0.3		)	(0.4		)
Total Incurred Losses and LAE	560.4			320.8			277.7			288.9			266.8			272.4			269.6			1,158.9			808.8
Insurance Expenses	194.8			78.8			76.9			71.4			71.2			68.9			67.7			350.5			207.8
Other Expenses	1.6			—			—			—			—			—			—			1.6			—
Operating Profit (Loss)	33.5			31.5			30.9			17.7			32.0			10.9			(1.6		)	95.9			41.3
Income Tax Benefit (Expense)	(6.1		)	(6.3		)	(5.9		)	(4.9		)	(12.0		)	(2.3		)	1.9			(18.3		)	(12.4		)
Total Product Line Net Operating Income (Loss)	$	27.4		$	25.2		$	25.0		$	12.8		$	20.0		$	8.6		$	0.3		$	77.6		$	28.9
Ratios Based On Earned Premiums
Current Year Non-catastrophe Losses and LAE Ratio	73.1		%	75.1		%	74.5		%	78.4		%	73.6		%	76.8		%	79.0		%	74.0		%	76.4		%
Current Year Catastrophe Losses and LAE Ratio	0.5			1.3			0.2			(0.2		)	1.2			1.9			2.0			0.6			1.7
Prior Years Non-catastrophe Losses and LAE Ratio	(0.5		)	0.7			0.2			1.1			0.8			1.7			3.1			—			1.8
Prior Years Catastrophe Losses and LAE Ratio	—			—			(0.1		)	—			—			(0.1		)	—			—			—
Total Incurred Loss and LAE Ratio	73.1			77.1			74.8			79.3			75.6			80.3			84.1			74.6			79.9
Insurance Expense Ratio	25.4			18.9			20.7			19.6			20.2			20.3			21.1			22.6			20.5
Combined Ratio	98.5		%	96.0		%	95.5		%	98.9		%	95.8		%	100.6		%	105.2		%	97.2		%	100.4		%
Underlying Combined Ratio 1
Current Year Non-catastrophe Losses and LAE Ratio	73.1		%	75.1		%	74.5		%	78.4		%	73.6		%	76.8		%	79.0		%	74.0		%	76.4		%
Insurance Expense Ratio	25.4			18.9			20.7			19.6			20.2			20.3			21.1			22.6			20.5
Underlying Combined Ratio	98.5		%	94.0		%	95.2		%	98.0		%	93.8		%	97.1		%	100.1		%	96.6		%	96.9		%
Non-GAAP Measure Reconciliation
Underlying Combined Ratio	98.5		%	94.0		%	95.2		%	98.0		%	93.8		%	97.1		%	100.1		%	96.6		%	96.9		%
Current Year Catastrophe Losses and LAE Ratio	0.5			1.3			0.2			(0.2		)	1.2			1.9			2.0			0.6			1.7
Prior Years Non-catastrophe Losses and LAE Ratio	(0.5		)	0.7			0.2			1.1			0.8			1.7			3.1			—			1.8
Prior Years Catastrophe Losses and LAE Ratio	—			—			(0.1		)	—			—			(0.1		)	—			—			—
Combined Ratio as Reported	98.5		%	96.0		%	95.5		%	98.9		%	95.8		%	100.6		%	105.2		%	97.2		%	100.4		%
1 Underlying Combined Ratio is a non-GAAP measure, which is computed as the difference between three operating ratios: the combined ratio, the effect of catastrophes (excluding development of prior-year catastrophes) on the combined ratio and the effect of prior-year reserve development at the reporting date (including development on prior-year catastrophes) on the combined ratio.

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																					Nine Months Ended
	Sep 30, 2018			Jun 30, 2018			Mar 31, 2018			Dec 31, 2017			Sep 30, 2017			Jun 30, 2017			Mar 31, 2017			Sep 30, 2018			Sep 30, 2017
Results of Operations
Net Premiums Written	$	56.3		$	13.5		$	13.5		$	10.6		$	12.6		$	13.3		$	14.7		$	83.3		$	40.6
Earned Premiums	$	55.9		$	12.5		$	12.2		$	12.9		$	13.1		$	12.7		$	12.7		$	80.6		$	38.5
Net Investment Income	3.1			1.3			1.4			1.4			1.8			1.4			1.5			5.8			4.7
Other Income	—			0.1			—			—			0.1			—			—			0.1			0.1
Total Revenues	59.0			13.9			13.6			14.3			15.0			14.1			14.2			86.5			43.3
Incurred Losses and LAE related to:
Current Year:
Non-catastrophe Losses and LAE	42.0			9.4			9.5			10.0			11.3			9.9			9.6			60.9			30.8
Catastrophe Losses and LAE	0.1			0.4			—			—			0.2			0.4			0.1			0.5			0.7
Prior Years:
Non-catastrophe Losses and LAE	(0.5		)	(0.1		)	(0.7		)	(1.1		)	(1.3		)	1.6			1.8			(1.3		)	2.1
Catastrophe Losses and LAE	—			—			(0.1		)	—			(0.1		)	—			—			(0.1		)	(0.1		)
Total Incurred Losses and LAE	41.6			9.7			8.7			8.9			10.1			11.9			11.5			60.0			33.5
Insurance Expenses	16.0			2.3			2.7			2.6			3.0			2.8			3.0			21.0			8.8
Other Expenses	0.1			—			—			—			—			—			—			0.1			—
Operating Profit (Loss)	1.3			1.9			2.2			2.8			1.9			(0.6		)	(0.3		)	5.4			1.0
Income Tax Benefit (Expense)	(0.5		)	(0.4		)	(0.4		)	(0.9		)	(0.5		)	0.3			0.2			(1.3		)	—
Total Product Line Net Operating Income (Loss)	$	0.8		$	1.5		$	1.8		$	1.9		$	1.4		$	(0.3	)	$	(0.1	)	$	4.1		$	1.0
Ratios Based On Earned Premiums
Current Year Non-catastrophe Losses and LAE Ratio	75.1		%	75.2		%	77.8		%	77.5		%	86.3		%	78.0		%	75.6		%	75.5		%	80.0		%
Current Year Catastrophe Losses and LAE Ratio	0.2			3.2			—			—			1.5			3.1			0.8			0.6			1.8
Prior Years Non-catastrophe Losses and LAE Ratio	(0.9		)	(0.8		)	(5.7		)	(8.5		)	(9.9		)	12.6			14.2			(1.6		)	5.5
Prior Years Catastrophe Losses and LAE Ratio	—			—			(0.8		)	—			(0.8		)	—			—			(0.1		)	(0.3		)
Total Incurred Loss and LAE Ratio	74.4			77.6			71.3			69.0			77.1			93.7			90.6			74.4			87.0
Insurance Expense Ratio	28.6			18.4			22.1			20.2			22.9			22.0			23.6			26.1			22.9
Combined Ratio	103.0		%	96.0		%	93.4		%	89.2		%	100.0		%	115.7		%	114.2		%	100.5		%	109.9		%
Underlying Combined Ratio 1
Current Year Non-catastrophe Losses and LAE Ratio	75.1		%	75.2		%	77.8		%	77.5		%	86.3		%	78.0		%	75.6		%	75.5		%	80.0		%
Insurance Expense Ratio	28.6			18.4			22.1			20.2			22.9			22.0			23.6			26.1			22.9
Underlying Combined Ratio	103.7		%	93.6		%	99.9		%	97.7		%	109.2		%	100.0		%	99.2		%	101.6		%	102.9		%
Non-GAAP Measure Reconciliation
Underlying Combined Ratio	103.7		%	93.6		%	99.9		%	97.7		%	109.2		%	100.0		%	99.2		%	101.6		%	102.9		%
Current Year Catastrophe Losses and LAE Ratio	0.2			3.2			—			—			1.5			3.1			0.8			0.6			1.8
Prior Years Non-catastrophe Losses and LAE Ratio	(0.9		)	(0.8		)	(5.7		)	(8.5		)	(9.9		)	12.6			14.2			(1.6		)	5.5
Prior Years Catastrophe Losses and LAE Ratio	—			—			(0.8		)	—			(0.8		)	—			—			(0.1		)	(0.3		)
Combined Ratio as Reported	103.0		%	96.0		%	93.4		%	89.2		%	100.0		%	115.7		%	114.2		%	100.5		%	109.9		%
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																					Nine Months Ended
	Sep 30, 2018			Jun 30, 2018			Mar 31, 2018			Dec 31, 2017			Sep 30, 2017			Jun 30, 2017			Mar 31, 2017			Sep 30, 2018			Sep 30, 2017
Results of Operations
Net Premiums Written	$	854.7		$	459.8		$	424.6		$	363.4		$	385.0		$	359.5		$	360.0		$	1,739.1		$	1,104.5
Earned Premiums	$	822.6		$	428.7		$	383.3		$	377.2		$	366.1		$	351.8		$	333.4		$	1,634.6		$	1,051.3
Net Investment Income	25.8			15.9			15.5			14.9			18.5			14.2			16.3			57.2			49.0
Other Income	0.9			0.4			0.3			0.2			0.4			0.3			0.2			1.6			0.9
Total Revenues	849.3			445.0			399.1			392.3			385.0			366.3			349.9			1,693.4			1,101.2
Incurred Losses and LAE related to:
Current Year:
Non-catastrophe Losses and LAE	602.5			321.9			285.9			295.7			271.0			270.6			262.9			1,210.3			804.5
Catastrophe Losses and LAE	3.7			6.0			0.8			(0.9		)	4.5			6.7			6.5			10.5			17.7
Prior Years:
Non-catastrophe Losses and LAE	(4.2		)	2.7			—			3.0			1.6			7.2			11.8			(1.5		)	20.6
Catastrophe Losses and LAE	—			(0.1		)	(0.3		)	—			(0.2		)	(0.2		)	(0.1		)	(0.4		)	(0.5		)
Total Incurred Losses and LAE	602.0			330.5			286.4			297.8			276.9			284.3			281.1			1,218.9			842.3
Insurance Expenses	210.8			81.1			79.6			74.0			74.2			71.7			70.7			371.5			216.6
Other Expenses	1.7			—			—			—			—			—			—			1.7			—
Operating Profit (Loss)	34.8			33.4			33.1			20.5			33.9			10.3			(1.9		)	101.3			42.3
Income Tax Benefit (Expense)	(6.6		)	(6.7		)	(6.3		)	(5.8		)	(12.5		)	(2.0		)	2.1			(19.6		)	(12.4		)
Total Product Line Net Operating Income (Loss)	$	28.2		$	26.7		$	26.8		$	14.7		$	21.4		$	8.3		$	0.2		$	81.7		$	29.9
Ratios Based On Earned Premiums
Current Year Non-catastrophe Losses and LAE Ratio	73.3		%	75.1		%	74.6		%	78.4		%	74.1		%	77.0		%	78.9		%	74.1		%	76.4		%
Current Year Catastrophe Losses and LAE Ratio	0.4			1.4			0.2			(0.2		)	1.2			1.9			1.9			0.6			1.7
Prior Years Non-catastrophe Losses and LAE Ratio	(0.5		)	0.6			—			0.8			0.4			2.0			3.5			(0.1		)	2.0
Prior Years Catastrophe Losses and LAE Ratio	—			—			(0.1		)	—			(0.1		)	(0.1		)	—			—			—
Total Incurred Loss and LAE Ratio	73.2			77.1			74.7			79.0			75.6			80.8			84.3			74.6			80.1
Insurance Expense Ratio	25.6			18.9			20.8			19.6			20.3			20.4			21.2			22.7			20.6
Combined Ratio	98.8		%	96.0		%	95.5		%	98.6		%	95.9		%	101.2		%	105.5		%	97.3		%	100.7		%
Underlying Combined Ratio 1
Current Year Non-catastrophe Losses and LAE Ratio	73.3		%	75.1		%	74.6		%	78.4		%	74.1		%	77.0		%	78.9		%	74.1		%	76.4		%
Insurance Expense Ratio	25.6			18.9			20.8			19.6			20.3			20.4			21.2			22.7			20.6
Underlying Combined Ratio	98.9		%	94.0		%	95.4		%	98.0		%	94.4		%	97.4		%	100.1		%	96.8		%	97.0		%
Non-GAAP Measure Reconciliation
Underlying Combined Ratio	98.9		%	94.0		%	95.4		%	98.0		%	94.4		%	97.4		%	100.1		%	96.8		%	97.0		%
Current Year Catastrophe Losses and LAE Ratio	0.4			1.4			0.2			(0.2		)	1.2			1.9			1.9			0.6			1.7
Prior Years Non-catastrophe Losses and LAE Ratio	(0.5		)	0.6			—			0.8			0.4			2.0			3.5			(0.1		)	2.0
Prior Years Catastrophe Losses and LAE Ratio	—			—			(0.1		)	—			(0.1		)	(0.1		)	—			—			—
Combined Ratio as Reported	98.8		%	96.0		%	95.5		%	98.6		%	95.9		%	101.2		%	105.5		%	97.3		%	100.7		%
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 20

Kemper Corporation Property & Casualty Insurance Segment Homeowners Insurance - Results of Operations and Selected Financial Information (Dollars in Millions) (Unaudited)
	Three Months Ended																					Nine Months Ended
	Sep 30, 2018			Jun 30, 2018			Mar 31, 2018			Dec 31, 2017			Sep 30, 2017			Jun 30, 2017			Mar 31, 2017			Sep 30, 2018			Sep 30, 2017
Results of Operations
Net Premiums Written	$	66.0		$	66.6		$	55.1		$	60.4		$	70.8		$	70.1		$	59.2		$	187.7		$	200.1
Earned Premiums	$	62.5		$	62.2		$	61.8		$	65.2		$	66.7		$	66.6		$	66.3		$	186.5		$	199.6
Net Investment Income	7.1			6.0			6.0			5.9			7.9			5.7			6.5			19.1			20.1
Total Revenues	69.6			68.2			67.8			71.1			74.6			72.3			72.8			205.6			219.7
Incurred Losses and LAE related to:
Current Year:
Non-catastrophe Losses and LAE	36.8			28.8			35.2			26.3			36.9			32.5			33.8			100.8			103.2
Catastrophe Losses and LAE	16.0			35.9			6.5			49.3			24.8			26.7			56.5			58.4			108.0
Prior Years:
Non-catastrophe Losses and LAE	1.8			2.7			5.6			1.6			0.9			1.5			0.7			10.1			3.1
Catastrophe Losses and LAE	(0.1		)	(1.3		)	(5.1		)	(0.5		)	(0.8		)	(1.8		)	(0.6		)	(6.5		)	(3.2		)
Total Incurred Losses and LAE	54.5			66.1			42.2			76.7			61.8			58.9			90.4			162.8			211.1
Insurance Expenses	20.5			21.9			19.2			18.7			20.3			20.6			21.0			61.6			61.9
Operating Profit (Loss)	(5.4		)	(19.8		)	6.4			(24.3		)	(7.5		)	(7.2		)	(38.6		)	(18.8		)	(53.3		)
Income Tax Benefit (Expense)	1.8			4.4			(1.2		)	8.7			10.5			3.1			14.0			5.0			27.6
Total Product Line Net Operating Income (Loss)	$	(3.6	)	$	(15.4	)	$	5.2		$	(15.6	)	$	3.0		$	(4.1	)	$	(24.6	)	$	(13.8	)	$	(25.7	)
Ratios Based On Earned Premiums
Current Year Non-catastrophe Losses and LAE Ratio	58.9		%	46.4		%	57.0		%	40.3		%	55.4		%	48.7		%	50.9		%	54.1		%	51.7		%
Current Year Catastrophe Losses and LAE Ratio	25.6			57.7			10.5			75.6			37.2			40.1			85.2			31.3			54.1
Prior Years Non-catastrophe Losses and LAE Ratio	2.9			4.3			9.1			2.5			1.3			2.3			1.1			5.4			1.6
Prior Years Catastrophe Losses and LAE Ratio	(0.2		)	(2.1		)	(8.3		)	(0.8		)	(1.2		)	(2.7		)	(0.9		)	(3.5		)	(1.6		)
Total Incurred Loss and LAE Ratio	87.2			106.3			68.3			117.6			92.7			88.4			136.3			87.3			105.8
Insurance Expense Ratio	32.8			35.2			31.1			28.7			30.4			30.9			31.7			33.0			31.0
Combined Ratio	120.0		%	141.5		%	99.4		%	146.3		%	123.1		%	119.3		%	168.0		%	120.3		%	136.8		%
Underlying Combined Ratio 1
Current Year Non-catastrophe Losses and LAE Ratio	58.9		%	46.4		%	57.0		%	40.3		%	55.4		%	48.7		%	50.9		%	54.1		%	51.7		%
Insurance Expense Ratio	32.8			35.2			31.1			28.7			30.4			30.9			31.7			33.0			31.0
Underlying Combined Ratio	91.7		%	81.6		%	88.1		%	69.0		%	85.8		%	79.6		%	82.6		%	87.1		%	82.7		%
Non-GAAP Measure Reconciliation
Underlying Combined Ratio	91.7		%	81.6		%	88.1		%	69.0		%	85.8		%	79.6		%	82.6		%	87.1		%	82.7		%
Current Year Catastrophe Losses and LAE Ratio	25.6			57.7			10.5			75.6			37.2			40.1			85.2			31.3			54.1
Prior Years Non-catastrophe Losses and LAE Ratio	2.9			4.3			9.1			2.5			1.3			2.3			1.1			5.4			1.6
Prior Years Catastrophe Losses and LAE Ratio	(0.2		)	(2.1		)	(8.3		)	(0.8		)	(1.2		)	(2.7		)	(0.9		)	(3.5		)	(1.6		)
Combined Ratio as Reported	120.0		%	141.5		%	99.4		%	146.3		%	123.1		%	119.3		%	168.0		%	120.3		%	136.8		%
1 Underlying Combined Ratio is a non-GAAP measure, which is computed as the difference between three operating ratios: the combined ratio, the effect of catastrophes (excluding development of prior-year catastrophes) on the combined ratio and the effect of prior-year reserve development at the reporting date (including development on prior-year catastrophes) on the combined ratio.

Page 21

Kemper Corporation Property & Casualty Insurance Segment Other Personal Lines - Results of Operations and Selected Financial Information (Dollars in Millions) (Unaudited)
	Three Months Ended																					Nine Months Ended
	Sep 30, 2018			Jun 30, 2018			Mar 31, 2018			Dec 31, 2017			Sep 30, 2017			Jun 30, 2017			Mar 31, 2017			Sep 30, 2018			Sep 30, 2017
Results of Operations
Net Premiums Written	$	10.3		$	10.5		$	9.2		$	9.5		$	10.9		$	11.1		$	9.7		$	30.0		$	31.7
Earned Premiums	$	10.1		$	10.2		$	10.1		$	10.5		$	10.7		$	10.8		$	10.7		$	30.4		$	32.2
Net Investment Income	1.1			1.0			1.0			1.0			1.4			0.7			1.3			3.1			3.4
Total Revenues	11.2			11.2			11.1			11.5			12.1			11.5			12.0			33.5			35.6
Incurred Losses and LAE related to:
Current Year:
Non-catastrophe Losses and LAE	4.9			4.3			5.4			5.0			5.2			5.7			5.9			14.6			16.8
Catastrophe Losses and LAE	—			0.5			0.2			2.4			0.5			1.1			0.9			0.7			2.5
Prior Years:
Non-catastrophe Losses and LAE	(1.1		)	(0.7		)	(1.9		)	(3.1		)	(0.9		)	0.9			(0.7		)	(3.7		)	(0.7		)
Catastrophe Losses and LAE	(0.1		)	(0.4		)	(0.3		)	(0.1		)	(0.2		)	—			(0.5		)	(0.8		)	(0.7		)
Total Incurred Losses and LAE	3.7			3.7			3.4			4.2			4.6			7.7			5.6			10.8			17.9
Insurance Expenses	2.7			2.9			2.7			2.7			3.1			2.7			3.1			8.3			8.9
Operating Profit	4.8			4.6			5.0			4.6			4.4			1.1			3.3			14.4			8.8
Income Tax Expense	(1.2		)	(0.7		)	(1.0		)	(1.6		)	(5.9		)	(0.4		)	(1.0		)	(2.9		)	(7.3		)
Total Product Line Net Operating Income (Loss)	$	3.6		$	3.9		$	4.0		$	3.0		$	(1.5	)	$	0.7		$	2.3		$	11.5		$	1.5
Ratios Based On Earned Premiums
Current Year Non-catastrophe Losses and LAE Ratio	48.5		%	42.2		%	53.5		%	47.6		%	48.6		%	52.8		%	55.1		%	48.0		%	52.2		%
Current Year Catastrophe Losses and LAE Ratio	—			4.9			2.0			22.9			4.7			10.2			8.4			2.3			7.8
Prior Years Non-catastrophe Losses and LAE Ratio	(10.9		)	(6.9		)	(18.8		)	(29.5		)	(8.4		)	8.3			(6.5		)	(12.2		)	(2.2		)
Prior Years Catastrophe Losses and LAE Ratio	(1.0		)	(3.9		)	(3.0		)	(1.0		)	(1.9		)	—			(4.7		)	(2.6		)	(2.2		)
Total Incurred Loss and LAE Ratio	36.6			36.3			33.7			40.0			43.0			71.3			52.3			35.5			55.6
Insurance Expense Ratio	26.7			28.4			26.7			25.7			29.0			25.0			29.0			27.3			27.6
Combined Ratio	63.3		%	64.7		%	60.4		%	65.7		%	72.0		%	96.3		%	81.3		%	62.8		%	83.2		%
Underlying Combined Ratio 1
Current Year Non-catastrophe Losses and LAE Ratio	48.5		%	42.2		%	53.5		%	47.6		%	48.6		%	52.8		%	55.1		%	48.0		%	52.2		%
Insurance Expense Ratio	26.7			28.4			26.7			25.7			29.0			25.0			29.0			27.3			27.6
Underlying Combined Ratio	75.2		%	70.6		%	80.2		%	73.3		%	77.6		%	77.8		%	84.1		%	75.3		%	79.8		%
Non-GAAP Measure Reconciliation
Underlying Combined Ratio	75.2		%	70.6		%	80.2		%	73.3		%	77.6		%	77.8		%	84.1		%	75.3		%	79.8		%
Current Year Catastrophe Losses and LAE Ratio	—			4.9			2.0			22.9			4.7			10.2			8.4			2.3			7.8
Prior Years Non-catastrophe Losses and LAE Ratio	(10.9		)	(6.9		)	(18.8		)	(29.5		)	(8.4		)	8.3			(6.5		)	(12.2		)	(2.2		)
Prior Years Catastrophe Losses and LAE Ratio	(1.0		)	(3.9		)	(3.0		)	(1.0		)	(1.9		)	—			(4.7		)	(2.6		)	(2.2		)
Combined Ratio as Reported	63.3		%	64.7		%	60.4		%	65.7		%	72.0		%	96.3		%	81.3		%	62.8		%	83.2		%
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 22

Kemper Corporation Life & Health Insurance Segment - Results of Operations and Selected Financial Information (Dollars in Millions) (Unaudited)
	Three Months Ended																					Nine Months Ended
	Sep 30, 2018			Jun 30, 2018			Mar 31, 2018			Dec 31, 2017			Sep 30, 2017			Jun 30, 2017			Mar 31, 2017			Sep 30, 2018			Sep 30, 2017
Results of Operations
Earned Premiums	$	157.7		$	157.0		$	154.6		$	153.0		$	154.7		$	153.3		$	153.0		$	469.3		$	461.0
Net Investment Income	50.5			54.1			53.3			57.7			55.9			54.9			53.0			157.9			163.8
Other Income	1.2			0.9			0.8			0.7			0.7			0.6			0.6			2.9			1.9
Total Revenues	209.4			212.0			208.7			211.4			211.3			208.8			206.6			630.1			626.7
Policyholders’ Benefits and Incurred Losses and LAE	97.0			99.2			104.9			93.8			96.8			96.5			100.3			301.1			293.6
Insurance Expenses	79.4			79.4			73.9			78.9			78.5			81.1			73.7			232.7			233.3
Operating Profit	33.0			33.4			29.9			38.7			36.0			31.2			32.6			96.3			99.8
Income Tax Expense	(6.3		)	(7.0		)	(6.1		)	(13.4		)	(12.5		)	(10.7		)	(11.1		)	(19.4		)	(34.3		)
Segment Net Operating Income	$	26.7		$	26.4		$	23.8		$	25.3		$	23.5		$	20.5		$	21.5		$	76.9		$	65.5

	Sep 30, 2018		Jun 30, 2018		Mar 31, 2018		Dec 31, 2017		Sep 30, 2017
Insurance Reserves:
Future Policyholder Benefits	$	3,389.4	$	3,379.8	$	3,366.7	$	3,357.5	$	3,345.7
Incurred Losses and LAE Reserves:
Life	134.3		137.7		142.4		140.0		141.6
Accident and Health	27.7		26.0		25.2		23.5		22.5
Property	4.5		3.8		4.1		4.1		7.3
Total Incurred Losses and LAE Reserves	166.5		167.5		171.7		167.6		171.4
Insurance Reserves	$	3,555.9	$	3,547.3	$	3,538.4	$	3,525.1	$	3,517.1

Page 23

Kemper Corporation Life & Health Insurance Segment Life Insurance - Results of Operations and Selected Financial Information (Dollars in Millions) (Unaudited)
	Three Months Ended																					Nine Months Ended
	Sep 30, 2018			Jun 30, 2018			Mar 31, 2018			Dec 31, 2017			Sep 30, 2017			Jun 30, 2017			Mar 31, 2017			Sep 30, 2018			Sep 30, 2017
Results of Operations
Earned Premiums	$	95.2		$	95.4		$	93.7		$	94.1		$	94.5		$	95.4		$	95.7		$	284.3		$	285.6
Net Investment Income	48.4			52.0			51.3			55.9			54.1			52.9			51.4			151.7			158.4
Other Income	0.9			0.9			0.7			0.7			0.6			0.6			0.5			2.5			1.7
Total Revenues	144.5			148.3			145.7			150.7			149.2			148.9			147.6			438.5			445.7
Policyholders’ Benefits and Incurred Losses and LAE	66.7			69.4			73.4			66.8			66.4			68.8			72.1			209.5			207.3
Insurance Expenses	51.8			51.2			47.4			51.7			53.0			54.8			48.4			150.4			156.2
Operating Profit	26.0			27.7			24.9			32.2			29.8			25.3			27.1			78.6			82.2
Income Tax Expense	(4.4		)	(5.9		)	(5.0		)	(11.1		)	(10.3		)	(8.7		)	(9.2		)	(15.3		)	(28.2		)
Total Product Line Operating Income	$	21.6		$	21.8		$	19.9		$	21.1		$	19.5		$	16.6		$	17.9		$	63.3		$	54.0

Kemper Corporation Life & Health Insurance Segment Accident & Health Insurance - Results of Operations and Selected Financial Information (Dollars in Millions) (Unaudited)
	Three Months Ended																					Nine Months Ended
	Sep 30, 2018			Jun 30, 2018			Mar 31, 2018			Dec 31, 2017			Sep 30, 2017			Jun 30, 2017			Mar 31, 2017			Sep 30, 2018			Sep 30, 2017
Results of Operations
Earned Premiums	$	44.9		$	43.8		$	43.3		$	41.1		$	42.0		$	39.5		$	39.1		$	132.0		$	120.6
Net Investment Income	1.5			1.6			1.5			1.2			1.3			1.4			1.3			4.6			4.0
Other Income	0.3			—			0.1			—			0.1			—			0.1			0.4			0.2
Total Revenues	46.7			45.4			44.9			42.3			43.4			40.9			40.5			137.0			124.8
Policyholders’ Benefits and Incurred Losses and LAE	23.5			24.1			25.2			22.8			22.9			21.8			21.2			72.8			65.9
Insurance Expenses	19.7			19.7			19.5			19.2			17.6			17.6			17.3			58.9			52.5
Operating Profit	3.5			1.6			0.2			0.3			2.9			1.5			2.0			5.3			6.4
Income Tax Expense	(1.0		)	(0.3		)	(0.1		)	(0.1		)	(1.2		)	(0.5		)	(0.7		)	(1.4		)	(2.4		)
Total Product Line Net Operating Income	$	2.5		$	1.3		$	0.1		$	0.2		$	1.7		$	1.0		$	1.3		$	3.9		$	4.0

Page 24

Kemper Corporation Life & Health Insurance Segment Property Insurance - Results of Operations and Selected Financial Information (Dollars in Millions) (Unaudited)
	Three Months Ended																					Nine Months Ended
	Sep 30, 2018			Jun 30, 2018			Mar 31, 2018			Dec 31, 2017			Sep 30, 2017			Jun 30, 2017			Mar 31, 2017			Sep 30, 2018			Sep 30, 2017
Results of Operations
Earned Premiums	$	17.6		$	17.8		$	17.6		$	17.8		$	18.2		$	18.4		$	18.2		$	53.0		$	54.8
Net Investment Income	0.6			0.5			0.5			0.6			0.5			0.6			0.3			1.6			1.4
Other Income	—			—			—			—			—			—			—			—			—
Total Revenues	18.2			18.3			18.1			18.4			18.7			19.0			18.5			54.6			56.2
Incurred Losses and LAE related to:
Current Year:
Non-catastrophe Losses and LAE	5.9			4.5			5.1			4.4			3.9			4.8			4.7			15.5			13.4
Catastrophe Losses and LAE	0.4			1.1			0.2			—			3.3			0.8			1.8			1.7			5.9
Prior Years:
Non-catastrophe Losses and LAE	0.6			0.1			0.9			—			0.1			0.1			0.2			1.6			0.4
Catastrophe Losses and LAE	(0.1		)	—			0.1			(0.2		)	0.2			0.2			0.3			—			0.7
Total Incurred Losses and LAE	6.8			5.7			6.3			4.2			7.5			5.9			7.0			18.8			20.4
Insurance Expenses	7.9			8.5			7.0			8.0			7.9			8.7			8.0			23.4			24.6
Operating Profit	3.5			4.1			4.8			6.2			3.3			4.4			3.5			12.4			11.2
Income Tax Expense	(0.9		)	(0.8		)	(1.0		)	(2.2		)	(1.0		)	(1.5		)	(1.2		)	(2.7		)	(3.7		)
Total Product Line Net Operating Income	$	2.6		$	3.3		$	3.8		$	4.0		$	2.3		$	2.9		$	2.3		$	9.7		$	7.5
Ratios Based On Earned Premiums
Current Year Non-catastrophe Losses and LAE Ratio	33.5		%	25.2		%	29.0		%	24.7		%	21.5		%	26.2		%	25.9		%	29.3		%	24.4		%
Current Year Catastrophe Losses and LAE Ratio	2.3			6.2			1.1			—			18.1			4.3			9.9			3.2			10.8
Prior Years Non-catastrophe Losses and LAE Ratio	3.4			0.6			5.1			—			0.5			0.5			1.1			3.0			0.7
Prior Years Catastrophe Losses and LAE Ratio	(0.6		)	—			0.6			(1.1		)	1.1			1.1			1.6			—			1.3
Total Incurred Loss and LAE Ratio	38.6			32.0			35.8			23.6			41.2			32.1			38.5			35.5			37.2
Insurance Expense Ratio	44.9			47.8			39.8			44.9			43.4			47.3			44.0			44.2			44.9
Combined Ratio	83.5		%	79.8		%	75.6		%	68.5		%	84.6		%	79.4		%	82.5		%	79.7		%	82.1		%
Underlying Combined Ratio 1
Current Year Non-catastrophe Losses and LAE Ratio	33.5		%	25.2		%	29.0		%	24.7		%	21.5		%	26.2		%	25.9		%	29.3		%	24.4		%
Insurance Expense Ratio	44.9			47.8			39.8			44.9			43.4			47.3			44.0			44.2			44.9
Underlying Combined Ratio	78.4		%	73.0		%	68.8		%	69.6		%	64.9		%	73.5		%	69.9		%	73.5		%	69.3		%
Non-GAAP Measure Reconciliation
Underlying Combined Ratio	78.4		%	73.0		%	68.8		%	69.6		%	64.9		%	73.5		%	69.9		%	73.5		%	69.3		%
Current Year Catastrophe Losses and LAE Ratio	2.3			6.2			1.1			—			18.1			4.3			9.9			3.2			10.8
Prior Years Non-catastrophe Losses and LAE Ratio	3.4			0.6			5.1			—			0.5			0.5			1.1			3.0			0.7
Prior Years Catastrophe Losses and LAE Ratio	(0.6		)	—			0.6			(1.1		)	1.1			1.1			1.6			—			1.3
Combined Ratio as Reported	83.5		%	79.8		%	75.6		%	68.5		%	84.6		%	79.4		%	82.5		%	79.7		%	82.1		%
1 Underlying Combined Ratio is a non-GAAP measure, which is computed as the difference between three operating ratios: the combined ratio, the effect of catastrophes (excluding development of prior-year catastrophes) on the combined ratio and the effect of prior-year reserve development at the reporting date (including development on prior-year catastrophes) on the combined ratio.

Page 25

Kemper Corporation Insurance Expenses and Interest and Other Expenses (Dollars in Millions)
	Three Months Ended																					Nine Months Ended
	Sep 30, 2018			Jun 30, 2018			Mar 31, 2018			Dec 31, 2017			Sep 30, 2017			Jun 30, 2017			Mar 31, 2017			Sep 30, 2018			Sep 30, 2017
Insurance Expenses:
Commissions	$	166.6		$	123.1		$	110.3		$	105.1		$	109.6		$	109.0		$	101.9		$	400.0		$	320.5
General Expenses	164.0			42.9			45.7			46.0			50.2			48.3			49.6			252.6			148.1
Taxes, Licenses and Fees	22.8			16.1			14.5			12.4			13.8			13.4			13.2			53.4			40.4
Total Costs Incurred	353.4			182.1			170.5			163.5			173.6			170.7			164.7			706.0			509.0
Policy Acquisition Costs:
Deferred	(156.1		)	(106.1		)	(96.5		)	(89.3		)	(91.6		)	(87.2		)	(83.5		)	(358.7		)	(262.3		)
Amortized	98.2			93.7			85.8			83.7			80.4			78.6			75.6			277.7			234.6
Net Policy Acquisition Costs Deferred	(57.9		)	(12.4		)	(10.7		)	(5.6		)	(11.2		)	(8.6		)	(7.9		)	(81.0		)	(27.7		)
Amortization of Insurance in Force	0.5			1.5			0.3			1.2			1.3			1.4			1.2			2.3			3.9
Insurance Expenses	296.0			171.2			160.1			159.1			163.7			163.5			158.0			627.3			485.2
Interest and Other Expenses:
Interest Expense	13.4			8.0			7.9			8.0			7.8			8.3			10.8			29.3			26.9
Other Expenses:
Loss on Cash Flow Hedge	(0.2		)	—			0.2			—			—			1.1			—			—			1.1
Acquisition Related Transaction, Integration and Other Costs	28.2			3.6			6.2			—			—			—			—			38.0			—
Other	20.3			14.1			14.7			13.5			10.4			12.0			8.7			49.1			31.1
Other Expenses	48.3			17.7			21.1			13.5			10.4			13.1			8.7			87.1			32.2
Interest and Other Expenses	61.7			25.7			29.0			21.5			18.2			21.4			19.5			116.4			59.1
Total Expenses	$	357.7		$	196.9		$	189.1		$	180.6		$	181.9		$	184.9		$	177.5		$	743.7		$	544.3

Page 26

Kemper Corporation Details of Investment Performance (Dollars in Millions)
	Three Months Ended																					Nine Months Ended
	Sep 30, 2018			Jun 30, 2018			Mar 31, 2018			Dec 31, 2017			Sep 30, 2017			Jun 30, 2017			Mar 31, 2017			Sep 30, 2018			Sep 30, 2017
Net Investment Income
Interest on Fixed Income Securities	$	70.6		$	64.4		$	62.4		$	62.6		$	61.8		$	62.1		$	60.1		$	197.4		$	184.0
Dividends on Equity Securities Excluding Alternative Investments	2.5			2.6			1.9			2.3			2.6			2.3			2.1			7.0			7.0
Alternative Investments:
Equity Method Limited Liability Investments	(0.4		)	1.4			7.1			2.9			11.1			4.0			6.8			8.1			21.9
Fair Value Option Investments	—			—			—			0.3			0.5			(0.6		)	1.1			—			1.0
Limited Liability Investments Included in Equity Securities	13.7			5.2			3.9			9.9			5.9			5.4			7.4			22.8			18.7
Total Alternative Investments	13.3			6.6			11.0			13.1			17.5			8.8			15.3			30.9			41.6
Short-term Investments	2.3			1.2			0.8			0.6			0.5			0.2			0.3			4.3			1.0
Real Estate	2.4			2.4			2.4			2.4			2.6			2.8			2.9			7.2			8.3
Loans to Policyholders	5.5			5.5			5.5			5.9			4.9			5.3			5.5			16.5			15.7
Other	0.2			0.4			—			0.3			0.1			0.1			—			0.6			0.2
Total Investment Income	96.8			83.1			84.0			87.2			90.0			81.6			86.2			263.9			257.8
Investment Expenses:
Real Estate	2.6			2.6			2.3			2.8			2.6			2.5			2.6			7.5			7.7
Other Investment Expenses	2.2			2.1			2.5			1.8			1.5			2.0			2.0			6.8			5.5
Total Investment Expenses	4.8			4.7			4.8			4.6			4.1			4.5			4.6			14.3			13.2
Net Investment Income	$	92.0		$	78.4		$	79.2		$	82.6		$	85.9		$	77.1		$	81.6		$	249.6		$	244.6
Net Realized Gains on Sales of Investments
Fixed Maturities:
Gains on Sales	$	5.9		$	1.2		$	4.1		$	1.1		$	2.4		$	3.5		$	1.4		$	11.2		$	7.3
Losses on Sales	(2.5		)	(1.9		)	(2.1		)	(0.5		)	—			(0.2		)	(0.2		)	(6.5		)	(0.4		)
Equity Securities:
Gains on Sales	0.2			4.6			0.6			10.9			3.9			18.3			8.9			5.4			31.1
Losses on Sales	—			—			—			—			—			—			—			—			—
Real Estate:
Gains on Sales	—			—			—			—			1.6			4.7			0.1			—			6.4
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			—			0.7
Net Realized Gains on Sales of Investments	$	3.6		$	3.8		$	2.6		$	11.5		$	8.1		$	26.4		$	10.5		$	10.0		$	45.0
Net Impairment Losses Recognized in Earnings
Fixed Maturities	$	(0.2	)	$	—		$	(0.3	)	$	(2.3	)	$	(2.9	)	$	(2.2	)	$	(4.7	)	$	(0.5	)	$	(9.8	)
Equity Securities	(1.6		)	—			(0.2		)	(1.5		)	—			(0.4		)	(0.3		)	(1.8		)	(0.7		)
Net Impairment Losses Recognized in Earnings	$	(1.8	)	$	—		$	(0.5	)	$	(3.8	)	$	(2.9	)	$	(2.6	)	$	(5.0	)	$	(2.3	)	$	(10.5	)

Page 27

Kemper Corporation Details of Invested Assets (Dollars in Millions) (Unaudited)
	Sep 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	$	858.9	10.4	%	$	556.1	8.2	%	$	336.3	5.1	%
States and Political Subdivisions	1,533.5		18.6		1,701.8		25.0		1,714.9		26.0
Foreign Governments	5.7		0.1		3.2		—		3.4		0.1
Corporate Securities:
Bonds and Notes	3,222.5		39.1		2,980.6		43.8		2,944.8		44.6
Redeemable Preferred Stocks	—		—		0.1		—		0.6		—
Collaterized Loan Obligations	472.1		5.7		139.8		2.1		122.8		1.9
Other Mortgage- and Asset-backed	15.9		0.2		1.1		—		2.1		—
Total Fixed Maturities Reported at Fair Value	6,108.6		74.1		5,382.7		79.1		5,124.9		77.7
Equity Securities Reported at Fair Value:
Preferred Stocks	51.7		0.6		78.8		1.2		82.5		1.2
Common Stocks	103.1		1.3		24.8		0.4		45.2		0.7
Other Equity Interests:
Exchange Traded Funds	458.8		5.6		219.5		3.2		151.1		2.3
Limited Liability Companies and Limited Partnerships	202.2		2.5		202.9		3.0		202.9		3.1
Total Equity Securities Reported at Fair Value	815.8		9.9		526.0		7.7		481.7		7.3
Equity Securities Reported at Modified Cost:
Preferred Stocks	10.8		0.1		—		—		—		—
Common Stocks	11.7		0.1		—		—		—		—
Limited Liability Companies and Limited Partnerships	28.4		0.3		—		—		—		—
Total Equity Securities Reported at Modified Cost	50.9		0.5		—		—		—		—
Equity Method Limited Liability Investments	170.0		2.1		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	688.5		8.3		235.5		3.5		273.7		4.1
Other Investments:
Loans to Policyholders at Unpaid Principal	298.0		3.6		298.6		4.4		294.2		4.5
Real Estate at Depreciated Cost	114.8		1.4		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	412.8		5.0		422.2		6.2		439.9		6.7
Total Investments	$	8,246.6	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)
	Sep 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	$	3,983.6	65.2	%	$	3,481.8	64.7	%	$	3,280.4	64.0	%
BBB	1,621.8		26.5		1,335.2		24.8		1,338.2		26.1
BB, B	325.9		5.3		357.2		6.6		321.6		6.3
CCC or Lower	177.3		2.9		208.5		3.9		184.7		3.6
Total Investments in Fixed Maturities	$	6,108.6	100.0	%	$	5,382.7	100.0	%	$	5,124.9	100.0	%
Duration (in Years)
Total Investments in Fixed Maturities	5.8				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)
	Sep 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	$	1,237.2	15.0	%	$	1,168.8	17.2	%	$	1,227.8	18.6	%
Finance, Insurance and Real Estate	1,218.8		14.8		780.2		11.5		742.6		11.2
Services	439.0		5.3		453.3		6.7		391.6		5.9
Transportation, Communication and Utilities	385.9		4.7		353.7		5.2		364.1		5.5
Mining	167.5		2.0		163.5		2.4		157.2		2.4
Retail Trade	148.2		1.8		102.6		1.5		101.9		1.5
Wholesale Trade	87.2		1.1		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	12.8		0.2		3.7		0.1		1.5		—
Total Fair Value of Non-governmental Fixed Maturities	$	3,710.5	45.1	%	$	3,121.6	46.0	%	$	3,070.3	46.3	%

	Sep 30, 2018
Ten Largest Investment Exposures 1	Fair Value		Percent of Total Investments
Fixed Maturities:
States including their Political Subdivisions:
Texas	$	109.7	1.3	%
Georgia	81.0		1.0
Michigan	80.1		1.0
Colorado	75.2		0.9
Louisiana	68.7		0.8
Virginia	61.7		0.7
California	60.2		0.7
Equity Securities—Other Equity Interests:
Vanguard World Stock ETF	90.3		1.1
iShares® Core MSCI Total International Stock ETF	79.1		1.0
Vanguard Total Stock Market ETF	64.8		0.8
Total	$	770.8	9.3	%

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 September 30, 2018.

Page 30

Kemper Corporation Municipal Bond Securities (Dollars in Millions) (Unaudited)
	Sep 30, 2018
	State General Obligation		Political Subdivision General Obligation		Revenue		Total Fair Value		Percent of Total Muni Bond1		Percent of Total Investments1
Texas	$	7.4	$	17.3	$	85.0	$	109.7	7.2	%	1.3	%
Georgia	50.4		5.1		25.5		81.0		5.3		1.0
Michigan	36.8		—		43.3		80.1		5.2		1.0
Colorado	—		14.6		60.6		75.2		4.9		0.9
Louisiana	41.5		7.9		19.3		68.7		4.5		0.8
Virginia	24.9		18.6		18.2		61.7		4.0		0.7
California	6.9		9.4		43.9		60.2		3.9		0.7
Washington	14.2		0.3		43.4		57.9		3.8		0.7
New York	6.0		2.6		44.5		53.1		3.5		0.6
Ohio	5.8		—		42.8		48.6		3.2		0.6
Massachusetts	2.6		1.4		43.8		47.8		3.1		0.6
Florida	28.0		—		13.6		41.6		2.7		0.5
Oregon	35.6		—		3.3		38.9		2.5		0.5
Wisconsin	24.5		6.8		6.2		37.5		2.4		0.5
Indiana	—		1.4		34.3		35.7		2.3		0.4
Pennsylvania	11.0		2.5		21.1		34.6		2.3		0.4
Minnesota	—		0.4		32.0		32.4		2.1		0.4
Maryland	2.6		20.4		6.1		29.1		1.9		0.4
Nevada	20.4		7.8		—		28.2		1.8		0.3
North Carolina	0.9		2.5		23.9		27.3		1.8		0.3
South Carolina	18.1		2.9		5.3		26.3		1.7		0.3
New Mexico	—		—		25.6		25.6		1.7		0.3
New Jersey	—		—		24.7		24.7		1.6		0.3
Iowa	—		—		24.1		24.1		1.6		0.3
Illinois	—		—		23.2		23.2		1.5		0.3
Connecticut	22.8		—		—		22.8		1.5		0.3
Tennessee	7.5		7.3		7.5		22.3		1.5		0.3
Arkansas	22.2		—		—		22.2		1.4		0.3
District Of Columbia	—		4.7		17.1		21.8		1.4		0.3
Arizona	—		0.8		20.5		21.3		1.4		0.3
Utah	0.7		—		19.9		20.6		1.3		0.2
Rhode Island	4.7		—		15.4		20.1		1.3		0.2
Delaware	10.5		—		9.4		19.9		1.3		0.2
Missouri	—		—		19.9		19.9		1.3		0.2
Hawaii	19.6		—		—		19.6		1.3		0.2
Alaska	1.8		2.8		14.4		19.0		1.2		0.2
Nebraska	—		6.9		11.5		18.4		1.2		0.2
Mississippi	15.7		—		1.7		17.4		1.1		0.2
Kentucky	—		—		15.6		15.6		1.0		0.2
All Other States	5.0		1.9		72.5		79.4		5.2		1.0
Total	$	448.1	$	146.3	$	939.1	$	1,533.5	100.0	%	18.6	%
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	Sep 30, 2018		Sep 30, 2018		Dec 31, 2017
Reported as Equity Method Limited Liability Investments at Cost Plus Cumulative Undistributed Earnings:
Mezzanine Debt	$	55.6	$	86.9	$	73.0
Senior Debt	22.1		7.8		4.8
Distressed Debt	—		36.7		47.5
Secondary Transactions	18.7		21.8		20.6
Leveraged Buyout	—		4.2		3.3
Growth Equity	—		5.3		5.7
Other	—		7.3		6.1
Total Equity Method Limited Liability Investments	96.4		170.0		161.0
Reported as Other Equity Interests at Fair Value:
Mezzanine Debt	95.6		112.1		102.2
Senior Debt	30.6		33.6		35.5
Distressed Debt	3.0		14.7		16.6
Secondary Transactions	10.3		9.9		8.9
Hedge Funds	—		22.6		—
Leveraged Buyout	3.1		4.0		6.3
Real Estate	—		—		—
Other	6.8		5.3		33.4
Total Reported as Other Equity Interests at Fair Value	149.4		202.2		202.9
Reported as Other Equity Interests at Modified Cost:
Mezzanine Debt	—		1.5		—
Other	0.1		26.9		—
Total Reported as Other Equity Interests at Modified Cost	0.1		28.4		—
Reported as Fair Value Option Investments:
Hedge Funds	—		—		77.5
Total Investments in Limited Liability Companies and Limited Partnerships	$	245.9	$	400.6	$	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, Integration and Other 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.

Page 33

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															Nine Months Ended
Dollars in Millions (Unaudited)	Sep 30, 2018			Jun 30, 2018			Mar 31, 2018			Dec 31, 2017			Sep 30, 2017			Sep 30, 2018			Sep 30, 2017
Adjusted Consolidated Net Operating Income (Loss)	$	104.5		$	36.5		$	57.5		$	31.0		$	44.4		$	198.5		$	61.5
Net Income (Loss) From:
Income from Change in Fair Value of Equity Securities	8.7			0.3			0.6			—			—			9.6			—
Net Realized Gains on Sales of Investments	2.8			3.0			2.1			7.4			5.3			7.9			29.3
Net Impairment Losses Recognized in Earnings	(1.4		)	—			(0.4		)	(2.5		)	(1.9		)	(1.8		)	(6.8		)
Acquisition Related Transaction and Integration Costs	(22.3		)	(2.3		)	(6.2		)	—			—			(30.8		)	—
Income (Loss) from Continuing Operations	$	92.3		$	37.5		$	53.6		$	35.9		$	47.8		$	183.4		$	84.0

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															Nine Months Ended
(Unaudited)	Sep 30, 2018			Jun 30, 2018			Mar 31, 2018			Dec 31, 2017			Sep 30, 2017			Sep 30, 2018			Sep 30, 2017
Adjusted Consolidated Net Operating Income (Loss) Per Unrestricted Share	$	1.61		$	0.70		$	1.11		$	0.60		$	0.85		$	3.53		$	1.19
Net Income (Loss) Per Unrestricted Share From:
Income from Change in Fair Value of Equity Securities	0.13			0.01			0.01			—			—			0.17			—
Net Realized Gains on Sales of Investments	0.04			0.06			0.04			0.14			0.10			0.14			0.57
Net Impairment Losses Recognized in Earnings	(0.02		)	—			(0.01		)	(0.05		)	(0.03		)	(0.03		)	(0.13		)
Acquisition Related Transaction and Integration Costs	(0.34		)	(0.04		)	(0.12		)	—			—			(0.55		)	—
Income (Loss) from Continuing Operations Per Unrestricted Share	$	1.42		$	0.73		$	1.03		$	0.69		$	0.92		$	3.26		$	1.63

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.

Page 34

Kemper Corporation

As Adjusted for Acquisition Non-GAAP Financial Measure

As Adjusted for Acquisition amounts are non-GAAP financial measures. For the three months ended September 30, 2018, as adjusted amounts are computed by subtracting the impact of purchase accounting adjustments from the comparable consolidated GAAP financial measure reported by Kemper. For the nine months ended September 30, 2018, as adjusted amounts are computed by adding the historical results of Infinity, the acquired company, for the six months ended June 30, 2018 and subtracting the impact of purchase accounting adjustments from the comparable consolidated GAAP financial measure reported by Kemper. For the three months ended September 30, 2017, as adjusted amounts are computed by adding the historical results of Infinity reported on a GAAP basis to the comparable consolidated GAAP financial measure reported by Kemper.The Company believes computing and presenting results on an adjusted basis are useful to investors and are used by management to provide meaningful and comparable year-over-year comparisons.

Page 35

Kemper Corporation

As Adjusted for Acquisition - Consolidated Statements of Operations

(Dollars in Millions)

(Unaudited)

	Three Months Ended												Nine Months Ended
	Sep 30, 2018									Sep 30, 2017			Sep 30, 2018												Sep 30, 2017
	As Reported			Less Purchase Accounting Adjustments			As Adjusted for Acquisition1			As Adjusted for Acquisition1			As Reported			Legacy Infinity2			Less Purchase Accounting Adjustments			As Adjusted for Acquisition1			As Adjusted for Acquisition1
Revenues:
Earned Premiums	$	1,052.9		$	—		$	1,052.9		$	943.2		$	2,320.8		$	728.2		$	—		$	3,049.0		$	2,769.6
Net Investment Income	92.0			—			92.0			95.7			249.6			21.6			—			271.2			272.1
Other Income	37.8			—			37.8			1.3			40.2			0.9			—			41.1			3.9
Income from Change in Fair Value of Equity Securities	11.0			—			11.0			—			12.1			—			—			12.1			—
Net Realized Gains on Sales of Investments	3.6			—			3.6			7.7			10.0			(3.7		)	—			6.3			47.0
Other-than-temporary Impairment Losses:																$	—								$	—
Total Other-than-temporary Impairment Losses	(1.8		)	—			(1.8		)	(2.9		)	(2.3		)	(0.7		)	—			(3.0		)	(10.8		)
Portion of Losses Recognized in Other Comprehensive Income	—			—			—			—			—			0.3			—			0.3			0.3
Net Impairment Losses Recognized in Earnings	(1.8		)	—			(1.8		)	(2.9		)	(2.3		)	(0.4		)	—			(2.7		)	(10.5		)
Total Revenues	1,195.5			—			1,195.5			1,045.0			2,630.4			746.6			—			3,377.0			3,082.1
Expenses:
Policyholders’ Benefits and Incurred Losses and Loss Adjustment Expenses	757.3			2.5			754.8			703.3			1,693.7			539.8			2.5			2,231.0			2,172.4
Insurance Expenses	296.0			47.9			248.1			228.7			627.3			133.6			47.9			713.0			676.2
Interest and Other Expenses	61.7			(0.4		)	62.1			23.0			116.4			12.8			(0.4		)	129.6			73.3
Total Expenses	1,115.0			50.0			1,065.0			955.0			2,437.4			686.2			50.0			3,073.6			2,921.9
Income (Loss) from Continuing Operations before Income Taxes	80.5			(50.0		)	130.5			90.0			193.0			60.4			(50.0		)	303.4			160.2
Income Tax Benefit (Expense)	11.8			10.5			1.3			(27.2		)	(9.6		)	(12.5		)	10.5			(32.6		)	(45.5		)
Income (Loss) from Continuing Operations	92.3			(39.5		)	131.8			62.8			183.4			47.9			(39.5		)	270.8			114.7
Discontinued Operations:
Income (Loss) from Discontinued Operations before Income Taxes	(0.2		)	—			(0.2		)	(0.1		)	0.2			—			—			0.2			—
Income Tax Expense	0.1			—			0.1			—			—			—			—			—			—
Income (Loss) from Discontinued Operations	(0.1		)	—			(0.1		)	(0.1		)	0.2			—			—			0.2			—
Net Income (Loss)	$	92.2		$	(39.5	)	$	131.7		$	62.7		$	183.6		$	47.9		$	(39.5	)	$	271.0		$	114.7
1 As Adjusted is a non-GAAP measure, which is computed by excluding the impact of purchase accounting and including the historical results of Legacy Kemper and Legacy Infinity in periods prior to the acquisition date of July 2, 2018. See page 35.
2 Legacy Infinity represents results for the period January 1, 2018 through June 30, 2018, when Infinity was not consolidated by Kemper.

Page 36

Kemper Corporation

As Adjusted for Acquisition - Property & Casualty Insurance Segment

(Dollars in Millions)

(Unaudited)

	Three Months Ended												Nine Months Ended
	Sep 30, 2018									Sep 30, 2017			Sep 30, 2018												Sep 30, 2017
	As Reported			Less Purchase Accounting Adjustments			As Adjusted for Acquisition1			As Adjusted for Acquisition1			As Reported			Legacy Infinity2			Less Purchase Accounting Adjustments			As Adjusted for Acquisition1			As Adjusted for Acquisition1
Results of Operations
Net Premiums Written	$	931.0		$	—		$	931.0		$	825.7		$	1,956.8		$	817.1		$	—		$	2,773.9		$	2,387.2
Earned Premiums	895.2			—			895.2			788.5			1,851.5			728.2			—			2,579.7			2,308.6
Net Investment Income	34.0			—			34.0			35.4			79.4			17.5			—			96.9			94.1
Other Income	0.9			—			0.9			0.8			1.6			0.9			—			2.5			1.9
Total Revenues	930.1			—			930.1			824.7			1,932.5			746.6			—			2,679.1			2,404.6
Incurred Losses and LAE related to:
Current Year:
Non-catastrophe Losses and LAE	644.2			2.5			641.7			565.4			1,325.7			550.7			2.5			1,873.9			1,731.0
Catastrophe Losses and LAE	19.7			—			19.7			44.8			69.6			1.5			—			71.1			146.4
Prior Years:
Non-catastrophe Losses and LAE	(3.5		)	—			(3.5		)	(2.6		)	4.9			(12.3		)	—			(7.4		)	5.7
Catastrophe Losses and LAE	(0.2		)	—			(0.2		)	(1.2		)	(7.7		)	(0.2		)	—			(7.9		)	(4.3		)
Total Incurred Losses and LAE	660.2			2.5			657.7			606.4			1,392.5			539.7			2.5			1,929.7			1,878.8
Insurance Expenses	234.0			47.9			186.1			162.7			441.4			133.6			47.9			527.1			478.4
Other Expenses	1.7			—			1.7			0.4			1.7			1.1			—			2.8			0.8
Operating Profit (Loss)	34.2			(50.4		)	84.6			55.2			96.9			72.2			(50.4		)	219.5			46.6
Income Tax Benefit (Expense)	(6.0		)	10.6			(16.6		)	(15.6		)	(17.5		)	(15.4		)	10.6			(43.5		)	(6.9		)
Segment Net Operating Income (Loss)	$	28.2		$	(39.8	)	$	68.0		$	39.6		$	79.4		$	56.8		$	(39.8	)	$	176.0		$	39.7
Ratios Based On Earned Premiums
Current Year Non-catastrophe Losses and LAE Ratio	71.9		%	—		%	71.7		%	71.7		%	71.5		%	75.6		%	—		%	72.6		%	75.1		%
Current Year Catastrophe Losses and LAE Ratio	2.2			—			2.2			5.7			3.8			0.2			—			2.8			6.3
Prior Years Non-catastrophe Losses and LAE Ratio	(0.4		)	—			(0.4		)	(0.3		)	0.3			(1.7		)	—			(0.3		)	0.2
Prior Years Catastrophe Losses and LAE Ratio	—			—			—			(0.2		)	(0.4		)	—			—			(0.3		)	(0.2		)
Total Incurred Loss and LAE Ratio	73.7			—			73.5			76.9			75.2			74.1			—			74.8			81.4
Insurance Expense Ratio	26.1			—			20.8			20.6			23.8			18.3			—			20.4			20.7
Combined Ratio	99.8		%	—		%	94.3		%	97.5		%	99.0		%	92.4		%	—		%	95.2		%	102.1		%
Underlying Combined Ratio
Current Year Non-catastrophe Losses and LAE Ratio	71.9		%	—		%	71.7		%	71.7		%	71.5		%	75.6		%	—		%	72.6		%	75.1		%
Insurance Expense Ratio	26.1			—			20.8			20.6			23.8			18.3			—			20.4			20.7
Underlying Combined Ratio	98.0		%	—		%	92.5		%	92.3		%	95.3		%	93.9		%	—		%	93.0		%	95.8		%
1 As Adjusted is a non-GAAP measure, which is computed by excluding the impact of purchase accounting in 2018 and including the historical results of Legacy Kemper and Legacy Infinity in periods prior to the acquisition date of July 2, 2018. See page 35.
2 Legacy Infinity represents results for the period January 1, 2018 through June 30, 2018, when Infinity was not consolidated by Kemper.

Page 37

Kemper Corporation

Property & Casualty Insurance Segment

As Adjusted for Acquisition - Non-standard Personal Automobile Insurance - Results of Operations and Selected Financial Information

(Dollars in Millions)

(Unaudited)

	Three Months Ended												Nine Months Ended
	Sep 30, 2018									Sep 30, 2017			Sep 30, 2018												Sep 30, 2017
	As Reported			Less Purchase Accounting Adjustments			As Adjusted for Acquisition1			As Adjusted for Acquisition1			As Reported			Legacy Infinity2			Less Purchase Accounting Adjustments			As Adjusted for Acquisition1			As Adjusted for Acquisition1
Results of Operations
Net Premiums Written	$	679.1		$	—		$	679.1		$	581.5		$	1,309.4		$	724.5		$	—		$	2,033.9		$	1,671.7
Earned Premiums	655.3			—			655.3			553.9			1,229.0			646.8			—			1,875.8			1,612.3
Net Investment Income	15.9			—			15.9			15.0			32.7			13.9			—			46.6			41.7
Other Income	0.9			—			0.9			0.3			1.5			—			—			1.5			0.8
Total Revenues	672.1			—			672.1			569.2			1,263.2			660.7			—			1,923.9			1,654.8
Incurred Losses and LAE related to:
Current Year:
Non-catastrophe Losses and LAE	485.6			2.0			483.6			408.2			926.2			486.8			2.0			1,411.0			1,266.7
Catastrophe Losses and LAE	1.3			—			1.3			15.5			3.2			1.4			—			4.6			22.5
Prior Years:
Non-catastrophe Losses and LAE	(1.1		)	—			(1.1		)	(3.0		)	3.3			(14.4		)	—			(11.1		)	(21.1		)
Catastrophe Losses and LAE	—			—			—			(0.1		)	(0.2		)	(0.2		)	—			(0.4		)	(0.1		)
Total Incurred Losses and LAE	485.8			2.0			483.8			420.6			932.5			473.6			2.0			1,404.1			1,268.0
Insurance Expenses	160.8			45.1			115.7			97.5			252.7			119.1			45.1			326.7			282.9
Other Expenses	1.6			—			1.6			—			1.6			—			—			1.6			—
Operating Profit (Loss)	23.9			(47.1		)	71.0			51.1			76.4			68.0			(47.1		)	191.5			103.9
Income Tax Benefit (Expense)	(4.5		)	9.9			(14.4		)	(16.2		)	(15.0		)	(14.7		)	9.9			(39.6		)	(31.6		)
Segment Net Operating Income (Loss)	$	19.4		$	(37.2	)	$	56.6		$	34.9		$	61.4		$	53.3		$	(37.2	)	$	151.9		$	72.3
Ratios Based On Earned Premiums
Current Year Non-catastrophe Losses and LAE Ratio	74.1		%	—		%	73.8		%	73.6		%	75.3		%	75.2		%	—		%	75.3		%	78.5		%
Current Year Catastrophe Losses and LAE Ratio	0.2			—			0.2			2.8			0.3			0.2			—			0.2			1.4
Prior Years Non-catastrophe Losses and LAE Ratio	(0.2		)	—			(0.2		)	(0.5		)	0.3			(2.2		)	—			(0.6		)	(1.3		)
Prior Years Catastrophe Losses and LAE Ratio	—			—			—			—			—			—			—			—			—
Total Incurred Loss and LAE Ratio	74.1			—			73.8			75.9			75.9			73.2			—			74.9			78.6
Insurance Expense Ratio	24.5			—			17.7			17.6			20.6			18.4			—			17.4			17.5
Combined Ratio	98.6		%	—		%	91.5		%	93.5		%	96.5		%	91.6		%	—		%	92.3		%	96.1		%
Underlying Combined Ratio
Current Year Non-catastrophe Losses and LAE Ratio	74.1		%	—		%	73.8		%	73.6		%	75.3		%	75.2		%	—		%	75.3		%	78.5		%
Insurance Expense Ratio	24.5			—			17.7			17.6			20.6			18.4			—			17.4			17.5
Underlying Combined Ratio	98.6		%	—		%	91.5		%	91.2		%	95.9		%	93.6		%	—		%	92.7		%	96.0		%
1 As Adjusted is a non-GAAP measure, which is computed by excluding the impact of purchase accounting in 2018 and including the historical results of Legacy Kemper and Legacy Infinity in periods prior to the acquisition date of July 2, 2018. See page 35.
2 Legacy Infinity represents results for the period January 1, 2018 through June 30, 2018, when Infinity was not consolidated by Kemper.

Page 38

Kemper Corporation

Property & Casualty Insurance Segment

As Adjusted for Acquisition - Commercial Automobile Insurance - Results of Operations and Selected Financial Information

(Dollars in Millions)

(Unaudited)

	Three Months Ended												Nine Months Ended
	Sep 30, 2018									Sep 30, 2017			Sep 30, 2018												Sep 30, 2017
	As Reported			Less Purchase Accounting Adjustments			As Adjusted for Acquisition1			As Adjusted for Acquisition1			As Reported			Legacy Infinity2			Less Purchase Accounting Adjustments			As Adjusted for Acquisition1			As Adjusted for Acquisition1
Results of Operations
Net Premiums Written	$	56.3		$	—		$	56.3		$	49.9		$	83.3		$	92.6		$	—		$	175.9		$	162.3
Earned Premiums	55.9			—			55.9			50.7			80.6			81.5			—			162.1			148.2
Net Investment Income	3.1			—			3.1			3.3			5.8			3.6			—			9.4			8.9
Other Income	—			—			—			0.1			0.1			—			—			0.1			0.1
Total Revenues	59.0			—			59.0			54.1			86.5			85.1			—			171.6			157.2
Incurred Losses and LAE related to:
Current Year:
Non-catastrophe Losses and LAE	42.0			0.5			41.5			40.9			60.9			63.9			0.5			124.3			116.4
Catastrophe Losses and LAE	0.1			—			0.1			1.3			0.5			0.2			—			0.7			2.0
Prior Years:
Non-catastrophe Losses and LAE	(0.5		)	—			(0.5		)	(0.4		)	(1.3		)	2.1			—			0.8			6.1
Catastrophe Losses and LAE	—			—			—			(0.1		)	(0.1		)	—			—			(0.1		)	(0.1		)
Total Incurred Losses and LAE	41.6			0.5			41.1			41.7			60.0			66.2			0.5			125.7			124.4
Insurance Expenses	16.0			2.8			13.2			10.2			21.0			14.5			2.8			32.7			28.9
Other Expenses	0.1			—			0.1			—			0.1			—			—			0.1			—
Operating Profit (Loss)	1.3			(3.3		)	4.6			2.2			5.4			4.4			(3.3		)	13.1			3.9
Income Tax Benefit (Expense)	(0.5		)	0.7			(1.2		)	(0.5		)	(1.3		)	(0.8		)	0.7			(2.8		)	(0.7		)
Segment Net Operating Income (Loss)	$	0.8		$	(2.6	)	$	3.4		$	1.7		$	4.1		$	3.6		$	(2.6	)	$	10.3		$	3.2
Ratios Based On Earned Premiums
Current Year Non-catastrophe Losses and LAE Ratio	75.1		%	—		%	74.2		%	80.6		%	75.5		%	78.4		%	—		%	76.7		%	78.6		%
Current Year Catastrophe Losses and LAE Ratio	0.2			—			0.2			2.6			0.6			0.2			—			0.4			1.3
Prior Years Non-catastrophe Losses and LAE Ratio	(0.9		)	—			(0.9		)	(0.8		)	(1.6		)	2.6			—			0.5			4.1
Prior Years Catastrophe Losses and LAE Ratio	—			—			—			(0.2		)	(0.1		)	—			—			(0.1		)	(0.1		)
Total Incurred Loss and LAE Ratio	74.4			—			73.5			82.2			74.4			81.2			—			77.5			83.9
Insurance Expense Ratio	28.6			—			23.6			20.1			26.1			17.8			—			20.2			19.5
Combined Ratio	103.0		%	—		%	97.1		%	102.3		%	100.5		%	99.0		%	—		%	97.7		%	103.4		%
Underlying Combined Ratio
Current Year Non-catastrophe Losses and LAE Ratio	75.1		%	—		%	74.2		%	80.6		%	75.5		%	78.4		%	—		%	76.7		%	78.6		%
Insurance Expense Ratio	28.6			—			23.6			20.1			26.1			17.8			—			20.2			19.5
Underlying Combined Ratio	103.7		%	—		%	97.8		%	100.7		%	101.6		%	96.2		%	—		%	96.9		%	98.1		%
1 As Adjusted is a non-GAAP measure, which is computed by excluding the impact of purchase accounting in 2018 and including the historical results of Legacy Kemper and Legacy Infinity in periods prior to the acquisition date of July 2, 2018. See page 35.
2 Legacy Infinity represents results for the period January 1, 2018 through June 30, 2018, when Infinity was not consolidated by Kemper.

Page 39

EX-99.3

EXHIBIT 99.3 Third Quarter 2018 Earnings November 5, 2018 Earnings Call Presentation – 3Q 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 the possibility that the anticipated benefits and synergies from an acquisition may not be fully realized to the extent or within the time frame previously expected and other factors 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 – 3Q 2018 2

Kemper Is a Leading Specialized Multi-Line Insurer Taking advantage of the benefits of a diversified platform • Multi-line national insurance company Key Metrics – Post Infinity Acquisition – Provide specialty auto and preferred personal insurance (auto, home & umbrella) Market Cap (11/2/18) $4.9 Billion – Provide basic life, accident & health products Debt-to-Capital Ratio ~27% 1 – Founded in 1990 and headquartered in Chicago, A.M. Best Ratings (Kemper/Infinity) A-/A with subsidiaries writing policies since 1911 Employees >7,800 • Multi-channel distribution network In-force policies ~7MM – 2,200 career agents and ~30,000 independent agents • Strong balance sheet LTM Pro Forma2 Business Mix – Insurance subsidiaries highly rated¹ by A.M. Best – ~90% of Kemper’s fixed maturity portfolio is investment Preferred, grade, of which over 65% is rated A or higher 18% • Successful execution by proven leadership team L&H, 16% Specialty – Materially enhanced operating and financial Auto, 66% performance – Strong momentum from Infinity acquisition – Closed acquisition of Infinity in July 2018; meaningful synergies achieved and more to come LTM Earned Premiums: $4.0bn To create value for all our stakeholders ¹ Alliance United is not rated Earnings Call Presentation – 3Q 2018 2 Latest twelve months Pro forma for the acquisition of Infinity 3

Create Long-Term Shareholder Value Leverage competitive advantages to grow returns and BVPS over time 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, analytics and other) Deliver low double-digit ROE¹ over time ¹ Return on Equity Earnings Call Presentation – 3Q 2018 4

Kemper’s New Brand Identity Powerful brand is foundational to unlock future value • Rationale – Previous architecture had over 20 consumer-facing brands with inconsistent identities hindering ability to leverage brand to enhance performance – Unified purpose, brand architecture and positioning increases awareness of Kemper’s strength, reach and capabilities – Harmonizing brand identity post Infinity acquisition, allows for faster integration and brand recognition – Enables ability to optimize value creation • Implementation & Transition – Thoughtful transition plans to maximize execution effectiveness o Brand dependent transitions to occur over next 6-18 months o No material disruption anticipated – Implementation costs included in estimated acquisition related transaction and integration costs Clear purpose and values consistently delivered increases brand equity, accelerating stakeholder value creation Earnings Call Presentation – 3Q 2018 5

Infinity Update – Transaction Rationale Significant Value Creation Through Combination In addition to scale benefits of a larger specialty player, each side brings complementary skills to the combined entity ✓ Strong product and claim capabilities ✓ Strong product and claim capabilities ✓ Low cost and efficient processes ✓ Low cost and efficient processes ✓ Proven growth track record in core markets ✓ Proven growth track record in core markets ✓ Specialized products and services provide ✓ Diversified national product portfolio with stable meaningful value to the urban and Hispanic L&H earnings provides capital to support growth communities – extensive bilingual capabilities ✓ Strong investment capabilities Additional Benefits of a Larger and Scaled Combined Business ✓ Increased scale yields stronger claim capabilities and better distribution breadth ✓ Ability to retain best in class capabilities and top talent from both organizations ✓ Larger premium base to spread fixed costs and investments into product, service and technology ✓ Geographic and product diversification enable improved capital management Shared core capabilities plus unique strengths and added scale create a dynamic, leading specialty franchise - delivering valuable products at reasonable costs to niche customer segments Earnings Call Presentation – 3Q 2018 6

Infinity Update – Integration Focused integration teams charged with delivery of best-in-class capabilities • Legacy Infinity leadership remains highly involved, adding additional depth and breadth People & Culture • Retained vast majority of product management, claims, sales and customer service employees • Cultures are aligned and teams are integrating/working together well • Ability to leverage increased data and segmentation into product development and pricing Product, Pricing & • Realigning product management geographically to better serve customer base and be positioned Underwriting to benefit from new opportunities in core markets • Transitioning to one P&C claims platform to improve operational efficiencies and data analytics Claims • Using best practices to refine approach to claim operations • Executing comprehensive systems integration plan Systems/Operation • Continue to identify strengths and weaknesses of current systems and platforms Integration • Elimination of duplicate systems over time to reduce expenses and gain efficiencies • Estimate of $55mm of fully phased in p/t synergies to be realized by 2Q 2020 remains unchanged Synergies • Realization of synergies on-track; do not anticipate straight-line realization of benefits; some lumpiness will occur as investments made to capture ultimate synergies Integration remains on track with meaningful benefits achieved and more expected Earnings Call Presentation – 3Q 2018 7

Third Quarter 2018 Highlights Specialty Auto growth is driving the strong performance • Net Income increased from $47.7 million to $92.2 million, as reported, or $131.7 million, as adjusted1, resulting in EPS of $0.92, $1.40 and $2.01, respectively 3Q18 • Adj Consolidated Net Operating EPS1 increased from $0.85 to $1.59, as reported vs • Earned Premiums increased $454.7 million, or 76 percent, as reported; on an as adjusted1 basis, 3Q17 Earned Premiums increased $109.7 million, or 12 percent • Specialty Auto increased Earned Premiums by 166 percent, as reported; on an as adjusted1 basis, Operating Earned Premiums increased $101.4 million, or 18 percent Results • Life & Health net operating income increased $3.2 million • Net Investment Income of $92.0 million continues to provide a consistent income stream • Ample liquidity at holding company post Infinity acquisition Balance Sheet • Approximately $400 million of available and contingent liquidity • Debt-to-capital ratio of approximately 26.8 percent • Closed acquisition of Infinity P&C on July 2, 2018 • Received a $35.7 million payment related to the partial satisfaction of an arbitration judgment Other • Received a $26.0 million tax benefit as a result of an updated analysis of certain provisional amounts recorded for the effect of the Tax Cuts and Jobs Act on deferred income taxes • Announced a Brand refresh to elevate focus on strength, stability and transformation ¹ Non-GAAP financial measure; Please see reconciliation in the appendix Earnings Call Presentation – 3Q 2018 8

Third Quarter Highlights Strong financial results on both an as reported and as adjusted basis Three Months Ended, as Reported Three Months Ended, as Adjusted 1 (Dollars in millions, except per share amounts) Sep. 30, Sep. 30, Variance Sep. 30, Sep. 30, Variance 2018 2017 2018 2017 Net Income $ 92.2 $ 47.7 $ 44.5 $ 131.7 $ 62.7 $ 69.0 Net Income Per Share - Diluted $ 1.40 $ 0.92 $ 0.48 $ 2.01 $ 0.96 $ 1.05 Adj. Consolidated Net Operating Income Per Share - Diluted¹ $ 1.59 $ 0.85 $ 0.74 $ 2.20 $ 0.91 $ 1.29 Earned Premiums $ 1,052.9 $ 598.2 $ 454.7 $ 1,052.9 $ 943.2 $ 109.7 Net Investment Income 92.0 85.9 6.1 92.0 95.7 (3.7) Net Realized Gains & Other Income 50.6 6.2 44.4 50.6 6.1 44.5 Total Revenues $ 1,195.5 $ 690.3 $ 505.2 $ 1,195.5 $ 1,045.0 $ 150.5 Book Value Per Share $ 47.33 $ 40.48 $ 6.85 Book Value Per Share Excluding Net Unrealized Gains on Fixed Maturities¹ $ 45.22 $ 35.87 $ 9.35 P&C Policies In Force (in thousands) 2,158 1,165 993 2,158 1,949 209 P&C Underlying Loss & LAE Ratio 71.9% 70.6% 1.3% 71.7% 71.7% (0.0%) P&C Expense Ratio 26.1% 22.0% 4.1% 20.8% 20.6% 0.2% Life Policies In Force (in thousands) 3,429 3,518 (89) 3,429 3,518 (89) Life Face Value of In-Force (in millions) $ 19,475 $ 19,293 $ 182 $ 19,475 $ 19,293 $ 182 3Q18 results led by strong performance in Specialty Auto ¹ Non-GAAP financial measure; Please see reconciliation in the appendix Earnings Call Presentation – 3Q 2018 9

Improving Underlying Operating Performance Three Months Ended, As Reported Dollars per Unrestricted Share - Diluted Sep. 30, Jun. 30, Mar. 31, Dec. 31, Sep. 30, Variance 2018 2018 2018 2017 2017 QoQ Income from Continuing Operations $ 1.40 $ 0.73 $ 1.02 $ 0.69 $ 0.92 0.48 Income from Change in FV of Equity Securities (0.13) (0.01) (0.01) - - (0.13) Investment Related (Gains)/Losses1 (0.04) (0.06) (0.04) (0.14) (0.10) 0.06 Net Impairment Losses 0.02 - 0.01 0.05 0.03 (0.01) Acquisition Related Transaction and Integration Costs 0.34 0.04 0.12 - - 0.34 Adj. Consolidated Net Operating Income2 1.59 0.70 1.10 0.60 0.85 0.74 Sources of Volatility: Catastrophes 0.24 0.66 0.12 0.64 0.41 (0.17) - Prior-year Reserve Development (0.04) 0.05 (0.02) 0.01 0.01 (0.05) - Alternative Investment Income (0.16) (0.10) (0.17) (0.16) (0.21) 0.05 - Tax Reform (0.40) - - (0.14) - (0.40) Partial Satisfaction of Judgement (0.43) - - - - (0.43) Impact of Purchase Accounting 0.61 - - - - 0.61 Total from Sources of Volatility $ (0.18) $ 0.61 $ (0.07) $ 0.35 $ 0.21 $ (0.39) Underlying Operating Performance2 $ 1.41 $ 1.31 $ 1.03 $ 0.95 $ 1.06 $ 0.35 Accelerated growth of underlying operating performance; Up 33 percent compared to 3Q17 ¹ Includes Income from change in fair value of equity securities, net realized gains on sales of investments and net impairment losses recognized in earnings Earnings Call Presentation – 3Q 2018 10 2 Non-GAAP financial measure; see reconciliation in the appendix

Stable Life & Health Earnings Life & Health continues to provide a diversification benefit and capital for growth Revenues1 (MM) Revenues $211 $211 $208 $211 $208 • Earned premiums continued to show $56 $58 $53 $54 $51 modest growth, reversing years of decline • Investment portfolio delivered a consistent source of cash flow resulting in net $155 $153 $155 $157 $158 investment income of $51 million 3Q17 4Q17 1Q18 2Q18 3Q18 Earned Premiums Net Investment Income Net Operating Income Net Operating Income (MM) • L&H continues to provide stable and diversified cash flows $26 $27 $24 $25 $24 3Q17 4Q17 1Q18 2Q18 3Q18 ¹ Excludes other income Earnings Call Presentation – 3Q 2018 11

Profitably Growing Specialty Auto1 Strong Specialty Auto franchise continues to deliver significant profitable growth (MM) Earned Premiums Revenues $554 $565 $580 $641 $655 • Earned premiums grew $101 million or 18 $333 percent compared to an as adjusted 3Q17; $307 $307 $314 results highlight the combined strength of $655 our specialty auto franchise $247 $258 $266 $308 • 3Q18 to 3Q17, earned premium growth was driven primarily by a 15 percent increase in policies in force 3Q17 4Q17 1Q18 2Q18 3Q18 Kemper Infinity 2 (%) Underlying Combined Ratio Underwriting Results • Underlying combined ratio remained strong, driven by moderating market loss trends, scale benefits and rate actions • Underwriting margin exceeded target 91.2 93.0 94.5 92.1 91.5 profitability ranges; focusing on continued profitable growth 3Q17 4Q17 1Q18 2Q18 3Q18 ¹ Includes Non-standard auto and classic car; Legacy Infinity included in all prior periods 2 Non-GAAP financial measure; see reconciliation in the appendix; excludes impact of purchase accounting Earnings Call Presentation – 3Q 2018 12

Preferred Lines Showing Improvement Continued progress on improving underlying profitability in Auto (MM) Earned Premiums by Line Preferred Auto $185 $183 $177 $181 $184 • Current year non-cat loss ratio improved 2.5 $11 $11 $10 $10 $10 percentage points due to increased rate and $67 $65 $62 $63 $62 flat to moderate frequency trends • Underwriting results improving but work $107 $107 $105 $109 $111 remains to bring to target profitability • Focused on improving profitability through 3Q17 4Q17 1Q18 2Q18 3Q18 product management and claims actions Auto Home Other Preferred Homeowners (%) Underlying Combined Ratio¹ 104.3 99.3 100.3 98.2 97.7 • Underlying combined ratio increased by 5.9 percentage points primarily due to a large 85.8 88.1 91.7 81.6 fire loss (~5 pts) and the aggregate 69.0 catastrophe treaty (~3 pts) • Financial results remain below target margins • Continued focus on profitability with product management and claims actions 3Q17 4Q17 1Q18 2Q18 3Q18 Auto Home Total Preferred Lines ¹ Non-GAAP financial measure; Please see reconciliation in the appendix Earnings Call Presentation – 3Q 2018 13

Consistent Portfolio Returns: High Quality, Moderate Risk Strong Investment Income Despite Low Rates Overview • Investment portfolio produced pre-tax $86 $83 $79 $78 $92 equivalent annualized book yield of 5.2 (MM) $13 percent in 3Q18 compared to 5.8 percent $18 $13 $11 $7 in 3Q17 - Reduction primarily due to mix shift $79 $68 $70 $68 $72 created through addition of Infinity’s portfolio • Alternative investment income slightly 3Q17 4Q17 1Q18 2Q18 3Q18 above expectations Alternative Investment Portfolio Core Portfolio • Increase in core portfolio investment Diversified & Highly-Rated Portfolio income generated primarily from addition of Infinity’s portfolio Portfolio Composition Fixed Maturity Ratings • Portfolio repositioned: 80 percent remains Other ≤ CCC fixed maturity and short-term securities, of Short-term Corporates B / BB 5% 5%3% which over 90 percent are investment Alternatives¹ 8% 5% grade Equity¹ 45% 8% 27% BBB 65% U.S. 10% A or Higher Gov’t 19% States/ Munis $8.2 Billion $6.1 Billion ¹ Equity Securities excludes $231 million of Other Equity Interests of LP/LLC’s that have been reclassified into Alternative Investments Earnings Call Presentation – 3Q 2018 14

Strong Current Capital Position with Ample Liquidity Capital position and liquidity resources provide significant financial flexibility Strong Parent Company Liquidity Risk-Based Capital Ratios $734 $741 (%) Life & Health P&C¹ $684 (MM) $582 $404 $400 $385 $391 $385 415 430 $300 330 335 400 $330 $341 $299 290 280 $197 375 $91 2014 2015 2016 2017 3Q18 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 <30% 26.5% 27.4% 27.6% 26.8% 21.9% (MM) Debt $345 $215 $241 $241 $122 $134 2014 2015 2016 2017 3Q18 2013 2014 2015 2016 2017 9M18 Total Capitalization $2.8B $2.7B $2.7B $2.7B $4.2B Earnings Call Presentation – 3Q 2018 15

Appendix Earnings Call Presentation – 3Q 2018 16

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 Sep. 30, 2018 Sep. 30, 2017 Book Value Per Share $ 47.33 $ 40.48 Less: Net Unrealized Gains on Fixed Maturities Per Share (2.11) (4.61) Book Value Per Share Excluding Net Unrealized Gains on Fixed Maturities $ 45.22 $ 35.87 Earnings Call Presentation – 3Q 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 – 3Q 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 3Q18 2Q18 1Q18 4Q17 3Q17 Adj. Consolidated Net Operating Income - Diluted $ 1.59 $ 0.70 $ 1.10 $ 0.60 $ 0.85 Net Income From: Income from Change in Fair Value of Equity Securities 0.13 0.01 0.01 - - Net Realized Gains on Sales of Investments 0.04 0.06 0.04 0.14 0.10 Net Impairment Losses Recognized in Earnings (0.02) - (0.01) (0.05) (0.03) Acquisition Related Transaction and Integration Costs (0.34) (0.04) (0.12) - - Income from Continuing Operations - Diluted $ 1.40 $ 0.73 $ 1.02 $ 0.69 $ 0.92 Earnings Call Presentation – 3Q 2018 19

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. Earnings Call Presentation – 3Q 2018 20

Non-GAAP Financial Measures Underlying Combined Ratio – Continued Specialty Auto For the Three Months Ended 3Q17 4Q17 1Q18 2Q18 3Q18 1 Earned Premiums: Kemper NSA - As Reported $ 246.5 $ 257.8 $ 266.2 $ 307.5 $ 655.4 Infinity Personal Auto & Classic Car 307.4 307.2 314.2 332.6 - As Adjusted Earned Premiums $ 553.9 $ 565.0 $ 580.4 $ 640.1 $ 655.4 Current Year Non-CAT Losses and LAE: Kemper NSA - As Reported $ 185.5 $ 204.6 $ 202.8 $ 237.8 $ 485.6 Infinity Personal Auto & Classic Car 222.7 219.0 242.3 244.5 (2.0) As Adjusted Current Year Non-CAT Losses and LAE $ 408.2 $ 423.6 $ 445.1 $ 482.3 $ 483.6 Insurance Expenses Kemper NSA - As Reported $ 39.7 $ 41.5 $ 45.2 $ 46.7 $ 160.8 Infinity Personal Auto & Classic Car 57.8 60.2 58.3 60.8 (45.1) As Adjusted Insurance Expenses $ 97.5 $ 101.7 $ 103.5 $ 107.5 $ 115.7 Underlying Combined Ratio: Kemper NSA - As Reported 91.3% 95.4% 93.2% 92.5% 98.6% Infinity Personal Auto & Classic Car 91.2% 90.9% 95.7% 91.8% (7.1%) As Adjusted Underlying Combined Ratio 91.2% 93.0% 94.5% 92.1% 91.5% ¹ Infinity line removes the impact of purchase accounting Earnings Call Presentation – 3Q 2018 21

Non-GAAP Financial Measures Underlying Combined Ratio – Continued For the Three Months Ended 3Q17 4Q17 1Q18 2Q18 3Q18 Preferred Personal Auto Underlying Combined Ratio 99.3% 104.3% 100.3% 98.2% 97.7% Current Year Catastrophe Loss and LAE Ratio 2.6% (0.1%) 0.6% 3.6% 2.1% Prior Years Non-Catastrophe Losses and LAE 0.8% 1.2% 0.5% (1.3%) (2.3%) Prior Years Catastrophe Losses and LAE Ratio 0.0% 0.0% 0.0% (0.1%) 0.0% Combined Ratio as Reported 102.7% 105.4% 101.4% 100.4% 97.5% Homeowners Underlying Combined Ratio 85.8% 69.0% 88.1% 81.6% 91.7% Current Year Catastrophe Loss and LAE Ratio 37.2% 75.6% 10.5% 57.7% 25.6% Prior Years Non-Catastrophe Losses and LAE 1.3% 2.5% 9.1% 4.3% 2.9% Prior Years Catastrophe Losses and LAE Ratio (1.2%) (0.8%) (8.3%) (2.1%) (0.2%) Combined Ratio as Reported 123.1% 146.3% 99.4% 141.5% 120.0% Earnings Call Presentation – 3Q 2018 22

Non-GAAP Financial Measures As Adjusted for Acquisition amounts are non-GAAP financial measures. For three months ended September 30, 2018, as adjusted amounts are computed by subtracting the impact of purchase accounting adjustments from the comparable consolidated GAAP financial measure reported by Kemper. For the three months ended September 30, 2017, as adjusted amounts are computed by adding the historical results of Infinity reported on a GAAP basis to the comparable consolidated GAAP financial measure reported by Kemper. Per share amounts on an acquisition-adjusted basis for the three months ended September 30, 2017 are computed by adjusting the denominator used in the calculation of diluted net income per share by adding the number of shares issued by Kemper on July 2, 2018 in connection with the acquisition to the diluted weighted-average shares outstanding reported by Kemper on a GAAP basis for the three months ended September 30, 2017. The Company believes computing and presenting results on an adjusted basis are useful to investors and are used by management to provide meaningful and comparable year-over-year comparisons. Earnings Call Presentation – 3Q 2018 23

Non-GAAP Financial Measures As Adjusted for Acquisition – Continued Consolidated Three Months Ended 30-Sep-18 30-Sep-17 Purchase As Accounting As As (Dollars in millions, except per share amounts) Reported Adjustments Adjusted 1 Adjusted 1 Revenues: Earned Premiums $ 1,052.9 $ - $ 1,052.9 $ 943.2 Net Investment Income 92.0 - 92.0 95.7 Other Income 37.8 - 37.8 1.3 Income from Change in Fair Value of Equity Securities 11.0 - 11.0 - Net Realized Gains on Sales of Investments 3.6 - 3.6 7.7 Other-than-temporary Impairment Losses: Total Other-than-temporary Impairment Losses (1.8) - (1.8) (2.9) Portion of Losses Recognized in Other Comprehensive Income - - - - Net Impairment Losses Recognized in Earnings (1.8) - (1.8) (2.9) Total Revenues 1,195.5 - 1,195.5 1,045.0 Expenses: Policyholders’ Benefits and Incurred Losses and Loss Adjustment 757.3 2.5 754.8 703.3 Insurance Expenses 296.0 47.9 248.1 228.7 Interest and Other Expenses 61.7 (0.4) 62.1 23.0 Total Expenses 1,115.0 50.0 1,065.0 955.0 Income (Loss) from Continuing Operations before Income Taxes 80.5 (50.0) 130.5 90.0 Income Tax Benefit (Expense) 11.8 10.5 1.3 (27.2) Income (Loss) from Continuing Operations 92.3 (39.5) 131.8 62.8 Discontinued Operations: Income (Loss) from Discontinued Operations before Income (0.2) - (0.2) (0.1) Income Tax Expense 0.1 - 0.1 - Income (Loss) from Discontinued Operations (0.1) - (0.1) (0.1) Net Income (Loss) $ 92.2 $ (39.5) $ 131.7 $ 62.7 Net Income (Loss) Per Unrestricted Share Diluted $ 1.40 $ 2.01 $ 0.96 ¹ As Adjusted is a non-GAAP measure, which is comprised by excluding the impact of purchase accounting in 2018 and including the historical results of Kemper and Infinity in periods prior to the acquisition date of July 2, 2018. Earnings Call Presentation – 3Q 2018 24

Non-GAAP Financial Measures As Adjusted for Acquisition – Continued Property & Casualty Insurance Segment Specialty Auto Three Months Ended Three Months Ended 30-Sep-18 30-Sep-17 30-Sep-18 30-Sep-17 Purchase Purchase As Accounting As As As Accounting As As (Dollars in millions, except per share amounts) Reported Adjustments Adjusted 1 Adjusted 1 Reported Adjustments Adjusted 1 Adjusted 1 Results of Operations Net Premiums Written $ 931.0 $ - $ 931.0 $ 825.7 $ 679.1 $ - $ 679.1 $ 581.5 Earned Premiums 895.3 - 895.3 788.5 655.4 - 655.4 553.9 Net Investment Income 34.0 - 34.0 35.4 15.9 - 15.9 15.0 Other Income 0.8 - 0.8 0.8 0.8 - 0.8 0.3 Total Revenues 930.1 - 930.1 824.7 672.1 - 672.1 569.2 Incurred Losses and LAE related to: Current Year: Non-catastrophe Losses and LAE 644.2 2.5 641.7 565.4 485.6 2.0 483.6 408.2 Catastrophe Losses and LAE 19.7 - 19.7 44.8 1.3 - 1.3 15.5 Prior Years: Non-catastrophe Losses and LAE (3.5) - (3.5) (2.6) (1.1) - (1.1) (3.0) Catastrophe Losses and LAE (0.2) - (0.2) (1.2) - - - (0.2) Total Incurred Losses and LAE 660.2 2.5 657.7 606.4 485.8 2.0 483.8 420.6 Insurance Expenses 234.0 47.9 186.1 162.7 160.8 45.1 115.7 97.5 Other Expenses 1.7 - 1.7 0.4 1.6 - 1.6 - Operating Profit (Loss) 34.2 (50.4) 84.6 55.2 23.9 (47.1) 71.0 51.1 Income Tax Benefit (Expense) (6.0) 10.6 (16.6) (15.6) (4.5) 9.9 (14.4) (16.2) Segment Net Operating Income (Loss) $ 28.2 $ (39.8) $ 68.0 $ 39.6 $ 19.4 $ (37.2) $ 56.6 $ 34.9 Ratios Based On Earned Premiums Current Year Non-catastrophe Losses and LAE Ratio 71.9% 71.7% 71.7% 74.1% 73.8% 73.6% Current Year Catastrophe Losses and LAE Ratio 2.2% 2.2% 5.7% 0.2% 0.2% 2.8% Prior Years Non-catastrophe Losses and LAE Ratio (0.4%) (0.4%) (0.3%) (0.2%) (0.2%) (0.5%) Prior Years Catastrophe Losses and LAE Ratio 0.0% (0.0%) (0.2%) 0.0% 0.0% (0.0%) Total Incurred Loss and LAE Ratio 73.7% 73.5% 76.9% 74.1% 73.8% 75.9% Insurance Expense Ratio 26.1% 20.8% 20.6% 24.5% 17.7% 17.6% Combined Ratio 99.8% 94.3% 97.5% 98.6% 91.5% 93.5% Underlying Combined Ratio Current Year Non-catastrophe Losses and LAE Ratio 71.9% 71.7% 71.7% 74.1% 73.8% 73.6% Insurance Expense Ratio 26.1% 20.8% 20.6% 24.5% 17.7% 17.6% Underlying Combined Ratio 98.0% 92.5% 92.3% 98.6% 91.5% 91.2% ¹ As Adjusted is a non-GAAP measure, which is comprised by excluding the impact of purchase accounting in 2018 and including the historical results of Kemper and Infinity in periods prior to the acquisition date of July 2, 2018. Earnings Call Presentation – 3Q 2018 25