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 4, 2019 

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.)

200 E. Randolph Street, Suite 3300, 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))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, par value $0.10 per share	KMPR	NYSE

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 4, 2019, Kemper Corporation ("Kemper" or the "Registrant") issued a press release announcing its financial results for the third quarter of 2019 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 4, 2019.

99.2 Third Quarter 2019 Investor Supplement of Kemper Corporation.

99.3 Third Quarter 2019 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 4, 2019	/S/    JAMES J. MCKINNEY
		James J. McKinney
		Executive Vice President and Chief Financial Officer (principal financial officer)

EX-99.1

Exhibit 99.1

	Kemper Corporation 200 East Randolph Street Suite 3300 Chicago, IL 60601 kemper.com
Press Release

Kemper Reports Strong Third Quarter 2019 Operating Results

CHICAGO, November 4, 2019 — Kemper Corporation (NYSE: KMPR) reported net income of $129.0 million, or $1.91 per diluted share, for the third quarter of 2019, compared to $92.2 million, or $1.40 per diluted share, for the third quarter of 2018. In the third quarter of 2019, net income included a $7.8 million after-tax gain, or $0.11 per diluted share, attributable to the change in fair value of equity and convertible securities. As adjusted for the acquisition of Infinity Property and Casualty Corporation (“as adjusted”)¹, net income was $135.6 million, or $2.01 per diluted share, for the third quarter of 2019, compared to $131.7 million, or $2.01 per diluted share, for the third quarter of 2018.

Adjusted consolidated net operating income¹ was $130.0 million, or $1.93 per diluted share, for the third quarter of 2019, compared to $104.5 million, or $1.59 per diluted share, for the third quarter of 2018. These results increased primarily from the continued profitable growth in the Specialty Property & Casualty Insurance segment.

Highlights of the quarter include:

◦ Consolidated earned premiums increased by 8 percent, or $82.3 million in the quarter

◦ Specialty Property & Casualty Insurance segment’s earned premiums increased by 10 percent, or $72.2 million in the quarter

“Kemper had a great quarter, and thanks to the ongoing efforts of our committed team, our results demonstrate that our strategy and business model continue to perform well,” said Joseph P. Lacher, Jr., President and CEO. “We generated industry-leading organic growth while maintaining a strong margin and balance sheet. We continued to create shareholder value as demonstrated by strong increases in earned premiums, book value per share and tangible book value per share, as well as our underlying fundamentals including return on equity, earnings per share, and net operating income.”

	Three Months Ended						Nine Months Ended
(Dollars in Millions, Except Per Share Amounts) (Unaudited)	Sep 30, 2019			Sep 30, 2018			Sep 30, 2019			Sep 30, 2018
Net Income	$	129.0		$	92.2		$	406.4		$	183.6
Income from Continuing Operations	$	129.0		$	92.3		$	406.4		$	183.4
Adjusted Consolidated Net Operating Income1	$	130.0		$	104.5		$	320.4		$	198.5
Impact of Catastrophe Losses and Related Loss Adjustment Expense (LAE) on Net Income	$	(11.6	)	$	(15.9	)	$	(48.2	)	$	(56.3	)
Diluted Net Income Per Share From:
Net Income	$	1.91		$	1.40		$	6.10		$	3.23
Income from Continuing Operations	$	1.91		$	1.40		$	6.10		$	3.23
Adjusted Consolidated Net Operating Income1	$	1.93		$	1.59		$	4.81		$	3.49
Impact of Catastrophe Losses and Related LAE on Net Income Per Share	$	(0.17	)	$	(0.24	)	$	(0.73	)	$	(0.99	)

¹ Non-GAAP financial measure. All Non-GAAP financial measures are denoted with footnote 1 throughout this release. See “Use of Non-GAAP Financial Measures” for additional information.

Capital

Total Shareholders’ Equity at the end of the quarter was $3,894.2 million, an increase of $844.1 million, or 28 percent, since year-end 2018 driven by net income, unrealized gains on the fixed maturity portfolio and proceeds from the issuance of stock partially offset by dividends paid to shareholders. Kemper ended the quarter with cash and investments at the holding company of $169.1 million, and the $400 million revolving credit agreement was undrawn.

During the third quarter of 2019, Kemper paid dividends of $16.7 million.

Kemper ended the quarter with a book value per share of $58.43, an increase of 24 percent from $47.10 at the end of 2018. Book value per share excluding net unrealized gains on fixed maturities¹ was $51.51, up 13 percent from $45.40 at the end of 2018, driven by net income partially offset by dividends paid to shareholders.

Revenues

Total revenues for the third quarter of 2019increased$48.3 million, or 4 percent, to $1,243.8 million, compared to the third quarter of 2018, driven by $72.2 million of higher Specialty P&C earned premiums. Specialty P&C earned premiums increased primarily from higher policies in force. Net investment income decreased$0.3 million to $91.7 million in the third quarter of 2019. Net realized investment gains were $1.7 million in the third quarter of 2019, compared to $3.6 million last year. Other income decreased from $37.8 million to $7.2 million in the third quarter of 2019 due primarily to the recognition of a $35.7 million gain for the partial satisfaction of a final judgment against CSC in the third quarter of 2018.

2

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) 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, 2019			Sep 30, 2018			Sep 30, 2019			Sep 30, 2018
Segment Net Operating Income:
Preferred Property & Casualty Insurance	$	21.1		$	12.2		$	29.1		$	19.7
Specialty Property & Casualty Insurance	78.5			21.5			220.8			67.3
Life & Health Insurance	33.4			27.1			69.8			77.9
Total Segment Net Operating Income	133.0			60.8			319.7			164.9
Corporate and Other Net Operating Income (Loss)	(3.0		)	43.7			0.7			33.6
Adjusted Consolidated Net Operating Income1	130.0			104.5			320.4			198.5
Net Income (Loss) From:
Change in Fair Value of Equity and Convertible Securities	7.8			8.7			78.8			9.6
Net Realized Gains on Sales of Investments	1.4			2.8			30.9			7.9
Net Impairment Losses Recognized in Earnings	(1.5		)	(1.4		)	(9.6		)	(1.8		)
Acquisition Related Transaction, Integration and Other Costs	(4.1		)	(22.3		)	(9.5		)	(30.8		)
Loss from Early Extinguishment of Debt	(4.6		)	—			(4.6		)	—
Income from Continuing Operations	$	129.0		$	92.3		$	406.4		$	183.4

The Preferred Property & Casualty Insurance segment reported net operating income of $21.1 million for the third quarter of 2019, compared to $12.2 million in 2018. Improved results were primarily due to lower incurred catastrophe losses and LAE and the sale of the Company’s subrogation rights associated with California wildfires in 2017 and 2018, partially offset by higher underlying losses and LAE as a percentage of earned premiums. The Preferred Property & Casualty Insurance segment’s combined ratio decreased10.9 percentage points to 92.4 percent, while the underlying combined ratio¹increased0.4 percent points to 94.9 percent in the third quarter of 2019, driven by a slight deterioration in the underlying loss ratio¹.

The Specialty Property & Casualty Insurance segment reported net operating income of $78.5 million for the third quarter of 2019, compared to $21.5 million in 2018. Results improved primarily from strong organic Personal Automobile growth and a reduction in amortization of purchase accounting adjustments compared to 2018. The segment’s underlying combined ratio¹ was 91.8 percent compared to 99.1 percent in the third quarter of 2018.

The Life & Health Insurance segment reported net operating income of $33.4 million for the third quarter of 2019, compared to $27.1 million in 2018. Results increased primarily from a decrease in policyholders’ benefits. The decrease in policyholders’ benefits and incurred losses reflected a release in accrued reserves.

3

Unaudited condensed consolidated statements of income for the three and nine months endedSeptember 30, 2019 and 2018 are presented below.

	Three Months Ended						Nine Months Ended
(Dollars in Millions, Except Per Share Amounts)	Sep 30, 2019			Sep 30, 2018			Sep 30, 2019			Sep 30, 2018
Revenues:
Earned Premiums	$	1,135.2		$	1,052.9		$	3,326.6		$	2,320.8
Net Investment Income	91.7			92.0			270.4			249.6
Other Income	7.2			37.8			31.8			40.2
Income from Change in Fair Value of Equity and Convertible Securities	9.8			11.0			99.7			12.1
Net Realized Gains on Sales of Investments	1.7			3.6			39.1			10.0
Other-than-temporary Impairment Losses:
Total Other-than-temporary Impairment Losses	(1.8		)	(1.8		)	(12.0		)	(2.3		)
Portion of Losses Recognized in Other Comprehensive Income	—			—			(0.1		)	—
Net Impairment Losses Recognized in Earnings	(1.8		)	(1.8		)	(12.1		)	(2.3		)
Total Revenues	1,243.8			1,195.5			3,755.5			2,630.4
Expenses:
Policyholders’ Benefits and Incurred Losses and Loss Adjustment Expenses	782.6			757.3			2,373.4			1,693.7
Insurance Expenses	256.0			296.0			754.3			627.3
Loss from Early Extinguishment of Debt	5.8			—			5.8			—
Interest and Other Expenses	37.9			61.7			117.3			116.4
Total Expenses	1,082.3			1,115.0			3,250.8			2,437.4
Income from Continuing Operations before Income Taxes	161.5			80.5			504.7			193.0
Income Tax (Expense) Benefit	(32.5		)	11.8			(98.3		)	(9.6		)
Income from Continuing Operations	129.0			92.3			406.4			183.4
Income (Loss) from Discontinued Operations	—			(0.1		)	—			0.2
Net Income	$	129.0		$	92.2		$	406.4		$	183.6
Income from Continuing Operations Per Unrestricted Share:
Basic	$	1.93		$	1.42		$	6.17		$	3.26
Diluted	$	1.91		$	1.40		$	6.10		$	3.23
Net Income Per Unrestricted Share:
Basic	$	1.93		$	1.42		$	6.17		$	3.26
Diluted	$	1.91		$	1.40		$	6.10		$	3.23
Weighted-average Outstanding (Shares in Thousands):
Unrestricted Shares - Basic	66,622.4			64,580.4			65,621.8			55,925.7
Unrestricted Shares and Equivalent Shares - Diluted	67,207.7			65,349.5			66,341.2			56,495.5

4

Unaudited business segment revenues for the three and nine months endedSeptember 30, 2019 and 2018 are presented below.

	Three Months Ended						Nine Months Ended
(Dollars in Millions)	Sep 30, 2019			Sep 30, 2018			Sep 30, 2019			Sep 30, 2018
REVENUES:
Preferred Property & Casualty Insurance:
Earned Premiums:
Preferred Automobile	$	119.7		$	111.4		$	353.0		$	325.0
Homeowners	61.5			62.5			182.6			186.5
Other Personal	9.8			10.1			29.5			30.4
Total Earned Premiums	191.0			184.0			565.1			541.9
Net Investment Income	12.0			20.1			32.6			47.8
Total Preferred Property & Casualty Insurance Revenues	203.0			204.1			597.7			589.7
Specialty Property & Casualty Insurance:
Earned Premiums:
Specialty Automobile	719.2			655.3			2,092.5			1,229.0
Commercial Automobile	64.2			55.9			186.2			80.6
Total Earned Premiums	783.4			711.2			2,278.7			1,309.6
Net Investment Income	28.8			20.7			79.2			40.8
Other Income	4.4			0.9			6.2			1.6
Total Specialty Property & Casualty Insurance Revenues	816.6			732.8			2,364.1			1,352.0
Life & Health Insurance:
Earned Premiums:
Life	96.2			95.2			289.0			284.3
Accident & Health	47.6			44.9			142.4			132.0
Property	17.0			17.6			51.4			53.0
Total Earned Premiums	160.8			157.7			482.8			469.3
Net Investment Income	49.7			51.0			154.4			159.2
Other Income	2.9			1.2			5.6			2.9
Total Life & Health Insurance Revenues	213.4			209.9			642.8			631.4
Total Segment Revenues	1,233.0			1,146.8			3,604.6			2,573.1
Income from Change in Fair Value of Equity and Convertible Securities	9.8			11.0			99.7			12.1
Net Realized Gains on Sales of Investments	1.7			3.6			39.1			10.0
Net Impairment Losses Recognized in Earnings	(1.8		)	(1.8		)	(12.1		)	(2.3		)
Other	1.1			35.9			24.2			37.5
Total Revenues	$	1,243.8		$	1,195.5		$	3,755.5		$	2,630.4

5

KEMPER CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (Dollars in Millions) (Unaudited)
	Sep 30, 2019		Dec 31, 2018
Assets:
Investments:
Fixed Maturities at Fair Value	$	6,883.6	$	6,424.2
Equity Securities at Fair Value	928.7		684.4
Equity Securities at Modified Cost	41.2		41.5
Equity Method Limited Liability Investments at Cost Plus Cumulative Undistributed Earnings	213.4		187.0
Convertible Securities at Fair Value	35.6		31.5
Short-term Investments at Cost which Approximates Fair Value	424.2		286.1
Other Investments	447.4		414.8
Total Investments	8,974.1		8,069.5
Cash	133.6		75.1
Receivables from Policyholders	1,139.8		1,007.1
Other Receivables	217.1		245.4
Deferred Policy Acquisition Costs	536.5		470.0
Goodwill	1,114.0		1,112.4
Current Income Tax Assets	44.1		38.9
Other Assets	660.7		526.5
Total Assets	$	12,819.9	$	11,544.9
Liabilities and Shareholders’ Equity:
Insurance Reserves:
Life & Health	$	3,566.2	$	3,558.7
Property & Casualty	1,941.6		1,874.9
Total Insurance Reserves	5,507.8		5,433.6
Unearned Premiums	1,574.9		1,424.3
Deferred Income Tax Liabilities	175.3		26.2
Liabilities for Unrecognized Tax Benefits	—		4.4
Collateralized Investment Borrowings at Cost	137.6		10.0
Debt at Amortized Cost	778.7		909.0
Accrued Expenses and Other Liabilities	751.4		687.3
Total Liabilities	8,925.7		8,494.8
Shareholders’ Equity:
Common Stock	6.7		6.5
Paid-in Capital	1,812.9		1,666.3
Retained Earnings	1,704.5		1,355.5
Accumulated Other Comprehensive Income	370.1		21.8
Total Shareholders’ Equity	3,894.2		3,050.1
Total Liabilities and Shareholders’ Equity	$	12,819.9	$	11,544.9

6

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

	Three Months Ended						Nine Months Ended
(Dollars in Millions)	Sep 30, 2019			Sep 30, 2018			Sep 30, 2019			Sep 30, 2018
Results of Operations
Net Premiums Written	$	189.6		$	195.6		$	566.7		$	564.1
Earned Premiums	$	191.0		$	184.0		$	565.1		$	541.9
Net Investment Income	12.0			20.1			32.6			47.8
Total Revenues	203.0			204.1			597.7			589.7
Incurred Losses and LAE related to:
Current Year:
Non-catastrophe Losses and LAE	121.7			116.6			361.6			338.6
Catastrophe Losses and LAE	11.9			18.3			51.1			65.9
Prior Years:
Non-catastrophe Losses and LAE	(1.1		)	(1.9		)	(10.5		)	2.9
Catastrophe Losses and LAE	(15.4		)	(0.2		)	(15.3		)	(7.4		)
Total Incurred Losses and LAE	117.1			132.8			386.9			400.0
Insurance Expenses	59.4			57.2			174.6			167.7
Operating Income	26.5			14.1			36.2			22.0
Income Tax Expense	(5.4		)	(1.9		)	(7.1		)	(2.3		)
Segment Net Operating Income	$	21.1		$	12.2		$	29.1		$	19.7
Ratios Based On Earned Premiums
Current Year Non-catastrophe Losses and LAE Ratio	63.8		%	63.4		%	64.1		%	62.5		%
Current Year Catastrophe Losses and LAE Ratio	6.2			9.9			9.0			12.2
Prior Years Non-catastrophe Losses and LAE Ratio	(0.6		)	(1.0		)	(1.9		)	0.5
Prior Years Catastrophe Losses and LAE Ratio	(8.1		)	(0.1		)	(2.7		)	(1.4		)
Total Incurred Loss and LAE Ratio	61.3			72.2			68.5			73.8
Insurance Expense Ratio	31.1			31.1			30.9			30.9
Combined Ratio	92.4		%	103.3		%	99.4		%	104.7		%
Underlying Combined Ratio1
Current Year Non-catastrophe Losses and LAE Ratio	63.8		%	63.4		%	64.1		%	62.5		%
Insurance Expense Ratio	31.1			31.1			30.9			30.9
Underlying Combined Ratio1	94.9		%	94.5		%	95.0		%	93.4		%
Non-GAAP Measure Reconciliation
Combined Ratio	92.4		%	103.3		%	99.4		%	104.7		%
Current Year Catastrophe Losses and LAE Ratio	6.2			9.9			9.0			12.2
Prior Years Non-catastrophe Losses and LAE Ratio	(0.6		)	(1.0		)	(1.9		)	0.5
Prior Years Catastrophe Losses and LAE Ratio	(8.1		)	(0.1		)	(2.7		)	(1.4		)
Underlying Combined Ratio1	94.9		%	94.5		%	95.0		%	93.4		%

7

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

	Three Months Ended						Nine Months Ended
(Dollars in Millions)	Sep 30, 2019			Sep 30, 2018			Sep 30, 2019			Sep 30, 2018
Results of Operations
Net Premiums Written	$	815.0		$	735.4		$	2,428.8		$	1,392.7
Earned Premiums	$	783.4		$	711.2		$	2,278.7		$	1,309.6
Net Investment Income	28.8			20.7			79.2			40.8
Other Income	4.4			0.9			6.2			1.6
Total Revenues	816.6			732.8			2,364.1			1,352.0
Incurred Losses and LAE related to:
Current Year:
Non-catastrophe Losses and LAE	579.4			527.6			1,702.9			987.1
Catastrophe Losses and LAE	2.3			1.4			7.3			3.7
Prior Years:
Non-catastrophe Losses and LAE	(4.1		)	(1.6		)	(31.0		)	2.0
Catastrophe Losses and LAE	0.2			—			0.3			(0.3		)
Total Incurred Losses and LAE	577.8			527.4			1,679.5			992.5
Insurance Expenses	139.2			176.8			404.9			273.7
Other Expenses	1.0			1.7			2.3			1.7
Operating Income	98.6			26.9			277.4			84.1
Income Tax Benefit	(20.1		)	(5.4		)	(56.6		)	(16.8		)
Segment Net Operating Income	$	78.5		$	21.5		$	220.8		$	67.3
Ratios Based On Earned Premiums
Current Year Non-catastrophe Losses and LAE Ratio	74.0		%	74.2		%	74.8		%	75.3		%
Current Year Catastrophe Losses and LAE Ratio	0.3			0.2			0.3			0.3
Prior Years Non-catastrophe Losses and LAE Ratio	(0.5		)	(0.2		)	(1.4		)	0.2
Prior Years Catastrophe Losses and LAE Ratio	—			—			—			—
Total Incurred Loss and LAE Ratio	73.8			74.2			73.7			75.8
Insurance Expense Ratio	17.8			24.9			17.8			20.9
Combined Ratio	91.6		%	99.1		%	91.5		%	96.7		%
Underlying Combined Ratio1
Current Year Non-catastrophe Losses and LAE Ratio	74.0		%	74.2		%	74.8		%	75.3		%
Insurance Expense Ratio	17.8			24.9			17.8			20.9
Underlying Combined Ratio1	91.8		%	99.1		%	92.6		%	96.2		%
Non-GAAP Measure Reconciliation
Combined Ratio	91.6		%	99.1		%	91.5		%	96.7		%
Current Year Catastrophe Losses and LAE Ratio	0.3			0.2			0.3			0.3
Prior Years Non-catastrophe Losses and LAE Ratio	(0.5		)	(0.2		)	(1.4		)	0.2
Prior Years Catastrophe Losses and LAE Ratio	—			—			—			—
Underlying Combined Ratio1	91.8		%	99.1		%	92.6		%	96.2		%

8

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

	Three Months Ended						Nine Months Ended
(Dollars in Millions)	Sep 30, 2019			Sep 30, 2018			Sep 30, 2019			Sep 30, 2018
Results of Operations
Earned Premiums	$	160.8		$	157.7		$	482.8		$	469.3
Net Investment Income	49.7			51.0			154.4			159.2
Other Income	2.9			1.2			5.6			2.9
Total Revenues	213.4			209.9			642.8			631.4
Policyholders’ Benefits and Incurred Losses and LAE	88.8			97.0			307.7			301.1
Insurance Expenses	83.6			79.4			248.7			232.7
Operating Profit	41.0			33.5			86.4			97.6
Income Tax Expense	(7.6		)	(6.4		)	(16.6		)	(19.7		)
Segment Net Operating Income	$	33.4		$	27.1		$	69.8		$	77.9

Use of Non-GAAP Financial Measures

Adjusted Consolidated Net Operating Income¹ 

Adjusted Consolidated Net Operating Income¹ is an after-tax, non-GAAP financial measure computed by excluding from Income from Continuing Operations the after-tax impact of 1) loss from change in fair value of equity and convertible 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 Income¹ 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. Loss from Change in Fair Value of Equity and Convertible 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.

9

A reconciliation of Income from Continuing Operations to Adjusted Consolidated Net Operating Income¹ for the three and nine months endedSeptember 30, 2019 and 2018 is presented below.

	Three Months Ended						Nine Months Ended
(Dollars in Millions) (Unaudited)	Sep 30, 2019			Sep 30, 2018			Sep 30, 2019			Sep 30, 2018
Income from Continuing Operations	$	129.0		$	92.3		$	406.4		$	183.4
Less Net Income (Loss) From:
Income from Change in Fair Value of Equity and Convertible Securities	7.8			8.7			78.8			9.6
Net Realized Gains on Sales of Investments	1.4			2.8			30.9			7.9
Net Impairment Losses Recognized in Earnings	(1.5		)	(1.4		)	(9.6		)	(1.8		)
Acquisition Related Transaction, Integration and Other Costs	(4.1		)	(22.3		)	(9.5		)	(30.8		)
Loss from Early Extinguishment of Debt	(4.6		)	—			(4.6		)	—
Adjusted Consolidated Net Operating Income1	$	130.0		$	104.5		$	320.4		$	198.5

Diluted Adjusted Consolidated Net Operating Income Per Unrestricted Share¹ 

Diluted Adjusted Consolidated Net Operating Income Per Unrestricted Share¹ is a non-GAAP financial measure computed by dividing Adjusted Consolidated Net Operating Income¹ 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 Income from Continuing Operations Per Unrestricted Share to Diluted Adjusted Consolidated Net Operating Income Per Unrestricted Share¹ for the three and nine months endedSeptember 30, 2019 and 2018 is presented below.

	Three Months Ended						Nine Months Ended
(Unaudited)	Sep 30, 2019			Sep 30, 2018			Sep 30, 2019			Sep 30, 2018
Diluted Income from Continuing Operations Per Unrestricted Share	$	1.91		$	1.40		$	6.10		$	3.23
Less Net Income (Loss) Per Unrestricted Share From:
Income from Change in Fair Value of Equity and Convertible Securities	0.11			0.13			1.18			0.17
Net Realized Gains on Sales of Investments	0.02			0.04			0.46			0.14
Net Impairment Losses Recognized in Earnings	(0.02		)	(0.02		)	(0.14		)	(0.03		)
Acquisition Related Transaction, Integration and Other Costs	(0.06		)	(0.34		)	(0.14		)	(0.54		)
Loss from Early Extinguishment of Debt	(0.07		)	—			(0.07		)	—
Diluted Adjusted Consolidated Net Operating Income Per Unrestricted Share1	$	1.93		$	1.59		$	4.81		$	3.49

Book Value Per Share Excluding Net Unrealized Gains on Fixed Maturities¹ 

Book Value Per Share Excluding Net Unrealized Gains on Fixed Maturities¹ 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.

10

A reconciliation of the numerator used in the computation of Book Value Per Share Excluding Net Unrealized Gains on Fixed Maturities¹ and Book Value Per Share at September 30, 2019 and December 31, 2018 is presented below.

(Dollars in Millions) (Unaudited)	Sep 30, 2019		Dec 31, 2018
Shareholders’ Equity	$	3,894.2	$	3,050.1
Net Unrealized Gains on Fixed Maturities	461.3		110.4
Shareholders’ Equity Excluding Net Unrealized Gains on Fixed Maturities1	$	3,432.9	$	2,939.7

Underlying Combined Ratio¹ 

Underlying Combined Ratio¹ 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 ratio¹ should not be considered a substitute for the combined ratio and does not reflect the overall underwriting profitability of our business.

As Adjusted for Acquisition¹ 

As Adjusted for Acquisition¹ amounts are non-GAAP financial measures. For three months endedSeptember 30, 2019 and 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. 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.

A reconciliation of the As Adjusted for Acquisition¹ non-GAAP financial measures used in this press release to the comparable GAAP financial measure for the three months endedSeptember 30, 2019 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 Acquisition1
Net Income	$	129.0	$	(6.6	)	$	135.6
Net Income Per Share - Diluted	$	1.91	$	(0.10	)	$	2.01
Specialty Property & Casualty Insurance Segment:
Earned Premiums	$	783.4	$	—		$	783.4
Segment Net Operating Income	$	78.5	$	(6.4	)	$	84.9

11

A reconciliation of the As Adjusted for Acquisition¹ non-GAAP financial measures used in this press release to the comparable GAAP financial measure for the three months endedSeptember 30, 2018 is presented below.

(Dollars in Millions) (Unaudited)	Kemper Consolidated GAAP Financial Measure		Less Impact of Purchase Accounting Adjustments			As Adjusted for Acquisition1
Net Income	$	92.2	$	(39.5	)	$	131.7
Net Income Per Share - Diluted	$	1.40	$	(0.61	)	$	2.01
Specialty Property & Casualty Insurance Segment:
Earned Premiums	$	711.2	$	—		$	711.2
Segment Net Operating Income	$	21.5	$	39.7		$	61.2

Conference Call

Kemper will discuss its third quarter 2019 results in a conference call on Monday, November 4, at 4:30 p.m. Eastern (3:30 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 2019, which is available at the investor section of kemper.com.

12

About Kemper

The Kemper family of companies is one of the nation’s leading specialized insurers. With over $12 billion in assets, Kemper is improving the world of insurance by providing affordable and easy-to-use personalized solutions to individuals, families and businesses through its Auto, Personal Insurance, Life and Health brands. Kemper serves over 6.4 million policies, is represented by more than 30,000 agents and brokers, and has over 8,400 associates dedicated to meeting the ever-changing needs of its customers.

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: Christine Patrick	312.661.4803 or investors@kemper.com
Media: Barbara Ciesemier	312.661.4521 or bciesemier@kemper.com

13

EX-99.2

Exhibit 99.2

Investor Supplement

Third Quarter 2019

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

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 November 4, 2019, the date this Investor Supplement was included as an exhibit to the Company's Current Report on Form 8-K. 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 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 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 2019

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	8-9
Debt Outstanding and Ratings	10
Segment Summary Results:
Revenues	11
Operating Profit (Loss)	12
Net Operating Income (Loss)	12
Catastrophe Frequency and Severity	13
Preferred Property & Casualty Insurance Segment - Results of Operations and Selected Financial Information	14 - 15
Preferred Personal Automobile Insurance	16
Homeowners and Other Personal Insurance	17
Homeowners Insurance	18
Other Personal Insurance	19
Specialty Property & Casualty Insurance Segment - Results of Operations and Selected Financial Information	20
Specialty Personal Automobile Insurance	21
Commercial Automobile Insurance	22
Life & Health Insurance Segment - Results of Operations and Selected Financial Information	23
Life Insurance	24
Accident and Health Insurance	24
Property Insurance	25
Insurance Expenses and Interest and Other Expenses	26
Details of Investment Performance	27
Details of Invested Assets	28 - 29
Investment Concentration	30
Municipal Bond Securities	31
Investments in Limited Liability Companies and Limited Partnerships	32
Definitions of Non-GAAP Financial Measures	33 - 34
As Adjusted for Acquisition	35
As Adjusted - Selected Consolidated Financial Information	36
As Adjusted - Specialty Property & Casualty Insurance Segment Selected Financial Information	37
As Adjusted - Specialty Personal Automobile Insurance Selected Financial Information	38

Kemper Corporation Consolidated Financial Highlights (Dollars in Millions, Except Per Share Amounts) (Unaudited)
	Three Months Ended																						Nine Months Ended
		Sep 30, 2019			Jun 30, 2019			Mar 31, 2019			Dec 31, 2018			Sep 30, 2018			Jun 30, 2018			Mar 31, 2018			Sep 30, 2019		Sep 30, 2018
For Period Ended
Earned Premiums		$	1,135.2		1,116.6			$	1,074.8		$	1,063.6		$	1,052.9		$	658.1		$	609.8		$	3,326.6	$	2,320.8
Net Investment Income		91.7			96.0			82.7			91.3			92.0			78.4			79.2			270.4		249.6
Other Income		7.2			22.7			1.9			2.0			37.8			1.2			1.2			31.8		40.2
Income (Loss) from Change in Fair Value of Equity and Convertible Securities		9.8			25.5			64.4			(76.4		)	11.0			0.4			0.7			99.7		12.1
Net Investment Gains		(0.1		)	14.6			12.5			14.2			1.8			3.8			2.1			27.0		7.7
Total Revenues		$	1,243.8		$	1,275.4		$	1,236.3		$	1,094.7		$	1,195.5		$	741.9		$	693.0		$	3,755.5	$	2,630.4
Net Income		$	129.0		$	122.1		$	155.3		$	6.5		$	92.2		$	37.6		$	53.8		$	406.4	$	183.6
Income from Continuing Operations		$	129.0		$	122.1		$	155.3		$	5.0		$	92.3		$	37.5		$	53.6		$	406.4	$	183.4
Adjusted Consolidated Net Operating Income 1		$	130.0		$	91.5		$	98.9		$	59.9		$	104.5		$	36.5		$	57.5		$	320.4	$	198.5
Per Unrestricted Common Share Amounts:
Basic:
Net Income		$	1.93		$	1.87		$	2.38		$	0.10		$	1.42		$	0.73		$	1.03		$	6.17	$	3.26
Income from Continuing Operations		$	1.93		$	1.87		$	2.38		$	0.08		$	1.42		$	0.73		$	1.03		$	6.17	$	3.26
Adjusted Consolidated Net Operating Income 1		$	1.95		$	1.39		$	1.52		$	0.92		$	1.61		$	0.70		$	1.11		$	4.86	$	3.53
Diluted:
Net Income		$	1.91		$	1.84		$	2.35		$	0.10		$	1.40		$	0.73		$	1.02		$	6.10	$	3.23
Income from Continuing Operations		$	1.91		$	1.84		$	2.35		$	0.08		$	1.40		$	0.73		$	1.02		$	6.10	$	3.23
Adjusted Consolidated Net Operating Income 1		$	1.93		$	1.38		$	1.50		$	0.91		$	1.59		$	0.70		$	1.10		$	4.81	$	3.49
Dividends Paid to Shareholders Per Share		$	0.25		$	0.25		$	0.25		$	0.24		$	0.24		$	0.24		$	0.24		$	0.75	$	0.72
At Period End
Total Assets		$	12,819.9		$	12,616.5		$	12,182.2		$	11,544.9		$	11,772.6		$	8,840.5		$	8,371.0
Insurance Reserves		$	5,507.8		$	5,492.9		$	5,437.2		$	5,433.6		$	5,370.5		$	4,603.2		$	4,539.4
Debt		$	778.7		$	873.3		$	908.5		$	909.0		$	1,123.7		$	951.8		$	592.3
Shareholders’ Equity		$	3,894.2		$	3,683.7		$	3,320.1		$	3,050.1		$	3,063.8		$	2,045.7		$	2,063.8
Shareholders’ Equity Excluding Goodwill1,2		$	2,780.2		$	2,569.7		$	2,208.6		$	1,937.7		$	1,972.6		$	1,722.7		$	1,740.8
Common Shares Issued and Outstanding (In Millions)		66.642			66.564			64.931			64.757			64.738			51.559			51.533
Book Value Per Share2		$	58.43		$	55.34		$	51.13		$	47.10		$	47.33		$	39.68		$	40.05
Book Value Per Share Excluding Goodwill1,2		$	41.72		$	38.60		$	34.01		$	29.92		$	30.47		$	33.41		$	33.78
Book Value Per Share Excluding Net Unrealized Gains on Fixed Maturities1,2		$	51.51		$	49.82		$	47.41		$	45.40		$	45.66		$	36.85		36.35
Book Value Per Share Excluding Net Unrealized Gains on Fixed Maturities and Goodwill1,2		$	34.80		$	33.08		$	30.29		$	28.22		$	28.81		$	30.59		30.08
Debt to Total Capitalization2		16.7		%	19.2		%	21.5		%	23.0		%	26.8		%	31.8		%	22.3		%
Rolling 12 Months Return on 5-point Average Shareholders Equity2,3		12.1		%	12.4		%	10.8		%	7.7		%	9.7		%	8.5		%	8.5		%
1 Non-GAAP Financial Measure. See page 33 for definition.
2 See Capital Metrics on pages 8-9 for detail calculations.
3 Rolling 12 Months Return on 5-point Average Shareholders Equity is calculated by taking the last 12 months of Net Income (Loss) divided by the 5-point average Shareholders’ Equity. The 5-point Average Shareholders’ Equity is calculated by using a 5-point quarter average of Shareholders’ Equity for the 12 month period.

Page 3

Kemper Corporation Consolidated Statements of Operations (Dollars in Millions, Except Per Share Amounts)  (Unaudited)
	Three Months Ended																						Nine Months Ended
		Sep 30, 2019			Jun 30, 2019			Mar 31, 2019			Dec 31, 2018			Sep 30, 2018			Jun 30, 2018			Mar 31, 2018			Sep 30, 2019			Sep 30, 2018
Revenues:
Earned Premiums		$	1,135.2		$	1,116.6		$	1,074.8		$	1,063.6		$	1,052.9		$	658.1		$	609.8		$	3,326.6		$	2,320.8
Net Investment Income		91.7			96.0			82.7			91.3			92.0			78.4			79.2			270.4			249.6
Other Income		7.2			22.7			1.9			2.0			37.8			1.2			1.2			31.8			40.2
Income (Loss) from Change in Fair Value of Equity and Convertible Securities		9.8			25.5			64.4			(76.4		)	11.0			0.4			0.7			99.7			12.1
Net Realized Gains on Sales of Investments		1.7			21.3			16.1			16.4			3.6			3.8			2.6			39.1			10.0
Other-than-temporary Impairment Losses:
Total Other-than-temporary Impairment Losses		(1.8		)	(6.7		)	(3.5		)	(2.2		)	(1.8		)	—			(0.5		)	(12.0		)	(2.3		)
Portion of Losses Recognized in Other Comprehensive Income		—			—			(0.1		)	—			—			—			—			(0.1		)	—
Net Impairment Losses Recognized in Earnings		(1.8		)	(6.7		)	(3.6		)	(2.2		)	(1.8		)	—			(0.5		)	(12.1		)	(2.3		)
Total Revenues		1,243.8			1,275.4			1,236.3			1,094.7			1,195.5			741.9			693.0			3,755.5			2,630.4
Expenses:
Policyholders’ Benefits and Incurred Losses and Loss Adjustment Expenses		782.6			825.4			765.4			772.8			757.3			499.5			436.9			2,373.4			1,693.7
Insurance Expenses		256.0			263.5			234.8			273.2			296.0			171.2			160.1			754.3			627.3
Loss from Early Extinguishment of Debt		5.8			—			—			—			—			—			—			5.8			—
Interest and Other Expenses		37.9			38.0			41.4			42.6			61.7			25.7			29.0			117.3			116.4
Total Expenses		1,082.3			1,126.9			1,041.6			1,088.6			1,115.0			696.4			626.0			3,250.8			2,437.4
Income from Continuing Operations before Income Taxes		161.5			148.5			194.7			6.1			80.5			45.5			67.0			504.7			193.0
Income Tax Benefit (Expense)		(32.5		)	(26.4		)	(39.4		)	(1.1		)	11.8			(8.0		)	(13.4		)	(98.3		)	(9.6		)
Income from Continuing Operations		129.0			122.1			155.3			5.0			92.3			37.5			53.6			406.4			183.4
Discontinued Operations:
Income (Loss) from Discontinued Operations before Income Taxes		—			—			—			2.1			(0.2		)	0.1			0.3			—			0.2
Income Tax Expense		—			—			—			(0.6		)	0.1			—			(0.1		)	—			—
Income (Loss) from Discontinued Operations		—			—			—			1.5			(0.1		)	0.1			0.2			—			0.2
Net Income		$	129.0		$	122.1		$	155.3		$	6.5		$	92.2		$	37.6		$	53.8		$	406.4		$	183.6
Income from Continuing Operations Per Unrestricted Share:
Basic		$	1.93		$	1.87		$	2.38		$	0.08		$	1.42		$	0.73		$	1.03		$	6.17		$	3.26
Diluted		$	1.91		$	1.84		$	2.35		$	0.08		$	1.40		$	0.73		$	1.02		$	6.10		$	3.23
Net Income Per Unrestricted Share:
Basic		$	1.93		$	1.87		$	2.38		$	0.10		$	1.42		$	0.73		$	1.03		$	6.17		$	3.26
Diluted		$	1.91		$	1.84		$	2.35		$	0.10		$	1.40		$	0.73		$	1.02		$	6.10		$	3.23
Dividends Paid to Shareholders Per Share		$	0.25		$	0.25		$	0.25		$	0.24		$	0.24		$	0.24		$	0.24		$	0.75		$	0.72
Weighted Average Unrestricted Common Shares Outstanding (in Millions)		66.622			65.408			64.815			64.748			64.580			51.550			51.503			65.622			55.926

Page 4

Kemper Corporation Consolidated Balance Sheets (Dollars in Millions)  (Unaudited)
	Sep 30, 2019		Jun 30, 2019		Mar 31, 2019		Dec 31, 2018		Sep 30, 2018		Jun 30, 2018		Mar 31, 2018
Assets:
Investments:
Fixed Maturities at Fair Value	$	6,883.6	$	6,540.2	$	6,573.1	$	6,424.2	$	6,108.6	$	5,260.3	$	5,301.2
Equity Securities at Fair Value	928.7		923.3		916.9		684.4		815.8		514.9		568.2
Equity Securities at Modified Cost	41.2		38.1		39.2		41.5		50.9		54.1		59.3
Equity Method Limited Liability Investments at Cost Plus Cumulative Undistributed Earnings	213.4		219.7		197.8		187.0		170.0		170.9		168.8
Convertible Securities at Fair Value	35.6		34.3		33.8		31.5		—		—		—
Short-term Investments at Cost which Approximates Fair Value	424.2		642.5		350.4		286.1		688.5		169.0		188.8
Other Investments	447.4		442.8		425.6		414.8		412.8		411.7		413.0
Total Investments	8,974.1		8,840.9		8,536.8		8,069.5		8,246.6		6,580.9		6,699.3
Cash	133.6		104.4		107.0		75.1		92.8		649.9		115.4
Receivables from Policyholders	1,139.8		1,095.2		1,048.6		1,007.1		1,029.9		407.5		386.0
Other Receivables	217.1		248.1		254.6		245.4		243.1		189.2		187.9
Deferred Policy Acquisition Costs	536.5		521.0		499.2		470.0		447.4		388.9		378.0
Goodwill	1,114.0		1,114.0		1,111.5		1,112.4		1,091.2		323.0		323.0
Current Income Tax Assets	44.1		41.0		19.7		38.9		58.1		0.9		—
Deferred Income Tax Assets	—		—		—		—		—		10.6		—
Other Assets	660.7		651.9		604.8		526.5		563.5		289.6		281.4
Total Assets	$	12,819.9	$	12,616.5	$	12,182.2	$	11,544.9	$	11,772.6	$	8,840.5	$	8,371.0
Liabilities and Shareholders’ Equity:
Insurance Reserves:
Life and Health	$	3,566.2	$	3,581.0	$	3,568.5	$	3,558.7	$	3,551.4	$	3,543.5	$	3,534.3
Property and Casualty	1,941.6		1,911.9		1,868.7		1,874.9		1,819.1		1,059.7		1,005.1
Total Insurance Reserves	5,507.8		5,492.9		5,437.2		5,433.6		5,370.5		4,603.2		4,539.4
Unearned Premiums	1,574.9		1,545.6		1,499.5		1,424.3		1,470.9		723.8		690.2
Current Income Tax Liabilities	—		—		—		—		—		—		0.2
Deferred Income Tax Liabilities	175.3		124.1		82.6		26.2		40.4		—		1.1
Liability for Unrecognized Tax Benefits	—		—		3.9		4.4		4.5		9.2		8.1
Collateralized Investment Borrowings	137.6		155.0		187.7		10.0		10.0		10.0		10.0
Long-term Debt, Current and Non-current, at Amortized Cost	778.7		873.3		908.5		909.0		1,123.7		951.8		592.3
Accrued Expenses and Other Liabilities	751.4		741.9		742.7		687.3		688.8		496.8		465.9
Total Liabilities	8,925.7		8,932.8		8,862.1		8,494.8		8,708.8		6,794.8		6,307.2
Shareholders’ Equity:
Common Stock	6.7		6.7		6.5		6.5		6.5		5.2		5.1
Paid-in Capital	1,812.9		1,806.4		1,673.0		1,666.3		1,661.3		681.5		676.9
Retained Earnings	1,704.5		1,593.7		1,489.7		1,355.5		1,365.1		1,289.4		1,264.9
Accumulated Other Comprehensive Income	370.1		276.9		150.9		21.8		30.9		69.6		116.9
Total Shareholders’ Equity	3,894.2		3,683.7		3,320.1		3,050.1		3,063.8		2,045.7		2,063.8
Total Liabilities and Shareholders’ Equity	$	12,819.9	$	12,616.5	$	12,182.2	$	11,544.9	$	11,772.6	$	8,840.5	$	8,371.0

Page 5

Kemper Corporation Consolidated Statements of Cash Flows (Dollars in Millions)  (Unaudited)
	Nine Months Ended
	Sep 30, 2019			Sep 30, 2018
Operating Activities:
Net Income	$	406.4		$	183.6
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities:
Amortization of Intangible Assets Acquired	24.3			106.1
Equity in Earnings of Equity Method Limited Liability Investments	0.5			(8.1		)
Distribution of Accumulated Earnings of Equity Method Limited Liability Investments	9.2			9.2
Payment for Pension Contribution	(55.3		)	(5.1		)
Decrease (Increase) in Value of Fair Value Option Investments Reported in Net Investment Income	—			—
Increase in Value of Equity Securities at Fair Value	(99.7		)	(12.1		)
Amortization of Investment Securities and Depreciation of Investment Real Estate	1.2			6.9
Net Realized Gains on Sales of Investments	(39.1		)	(10.0		)
Net Impairment Losses Recognized in Earnings	12.1			2.3
Loss from Early Extinguishment of Debt	5.8			—
Depreciation of Property and Equipment	21.7			12.2
Increase in Receivables	(104.4		)	(102.3		)
Increase in Deferred Policy Acquisition Costs	(66.5		)	(82.1		)
Increase in Insurance Reserves	71.5			131.8
Increase in Unearned Premiums	150.7			102.3
Change in Income Taxes	46.1			4.6
Change in Accrued Expenses and Other Liabilities	(22.8		)	(5.4		)
Other, Net	4.8			11.4
Net Cash Provided by Operating Activities (Carryforward to page 7)	366.5			345.3

Page 6

Kemper Corporation Consolidated Statements of Cash Flows (Dollars in Millions)  (Unaudited)
	Nine Months Ended
	Sep 30, 2019			Sep 30, 2018
Net Cash Provided by Operating Activities (Carryforward from page 6)	366.5			345.3
Investing Activities:
Sales, Paydowns and Maturities of Fixed Maturities	1,067.9			2,133.7
Purchases of Fixed Maturities	(1,013.7		)	(1,520.7		)
Sales of Equity Securities	99.7			186.6
Purchases of Equity Securities	(248.2		)	(344.3		)
Return of Investment of Equity Method Limited Liability Investments	25.7			7.3
Acquisitions of Equity Method Limited Liability Investments	(61.8		)	(17.4		)
Decrease (Increase) in Short-term Investments	(111.5		)	(351.6		)
Improvements of Investment Real Estate	(1.2		)	(1.0		)
Acquisition of Business, Net of Cash Acquired	—			(560.6		)
Increase (Decrease) in Other Investments	(32.3		)	0.6
Purchase of Corporate-owned Life Insurance	(50.0		)	—
Acquisition of Software and Long-lived Assets	(53.8		)	(53.9		)
Other, Net	(2.0		)	4.6
Net Cash Provided (Used) by Investing Activities	(381.2		)	(516.7		)
Financing Activities:
Net Proceeds from Issuances of Long-term Debt	49.9			249.0
Repayments of Long-term Debt	(185.0		)	—
Dividends and Dividend Equivalents Paid	(49.1		)	(40.7		)
Proceeds from Collateralized Investment Borrowings	385.6			10.0
Repayment of Collateralized Investment Borrowing	(258.0		)	—
Proceeds from Issuance of Common Stock, Net of Transaction Costs	127.5			—
Proceeds from Shares Issued under Employee Stock Purchase Plan	1.0			—
Cash Exercise of Stock Options	2.2			0.7
Other, Net	(0.9		)	(0.5		)
Net Cash Provided by Financing Activities	73.2			218.5
Increase in Cash	58.5			47.1
Cash, Beginning of Year	75.1			45.7
Cash, End of Period	$	133.6		$	92.8

Page 7

Kemper Corporation Capital Metrics (Dollars and Shares in Millions, Except Per Share Amounts) (Unaudited)
	Three Months Ended
		Sep 30, 2019			Jun 30, 2019			Mar 31, 2019			Dec 31, 2018			Sep 30, 2018			Jun 30, 2018			Mar 31, 2018
Book Value Per Share
Numerator
Shareholders’ Equity		$	3,894.2		$	3,683.7		$	3,320.1		$	3,050.1		$	3,063.8		$	2,045.7		$	2,063.8
Less: Goodwill		(1,114.0		)	(1,114.0		)	(1,111.5		)	(1,112.4		)	(1,091.2		)	(323.0		)	(323.0		)
Shareholders’ Equity Excluding Goodwill1		$	2,780.2		$	2,569.7		$	2,208.6		$	1,937.7		$	1,972.6		$	1,722.7		$	1,740.8
Shareholders’ Equity		$	3,894.2		$	3,683.7		$	3,320.1		$	3,050.1		$	3,063.8		$	2,045.7		$	2,063.8
Less: Net Unrealized Gains on Fixed Maturities		(461.3		)	(367.8		)	(241.9		)	(110.4		)	(107.6		)	(145.6		)	(190.5		)
Shareholders’ Equity Excluding Net Unrealized Gains on Fixed Maturities1		$	3,432.9		$	3,315.9		$	3,078.2		$	2,939.7		$	2,956.2		$	1,900.1		$	1,873.3
Less: Goodwill		(1,114.0		)	(1,114.0		)	(1,111.5		)	(1,112.4		)	(1,091.2		)	(323.0		)	(323.0		)
Shareholders’ Equity Excluding Net Unrealized Gains on Fixed Maturities and Goodwill1		$	2,318.9		$	2,201.9		$	1,966.7		$	1,827.3		$	1,865.0		$	1,577.1		$	1,550.3
Denominator
Common Shares Issued and Outstanding		66.642			66.564			64.931			64.757			64.738			51.559			51.533
Book Value Per Share		$	58.43		$	55.34		$	51.13		$	47.10		$	47.33		$	39.68		$	40.05
Book Value Per Share Excluding Goodwill1		$	41.72		$	38.60		$	34.01		$	29.92		$	30.47		$	33.41		$	33.78
Book Value Per Share Excluding Net Unrealized Gains on Fixed Maturities1		$	51.51		$	49.82		$	47.41		$	45.40		$	45.66		$	36.85		$	36.35
Book Value Per Share Excluding Net Unrealized Gains on Fixed Maturities and Goodwill1		$	34.80		$	33.08		$	30.29		$	28.22		$	28.81		$	30.59		$	30.08
Return on Shareholders’ Equity
Numerator
Rolling 12 Months Net Income		$	412.9		$	376.1		$	291.6		$	190.1		$	220.5		$	176.0		$	175.0
Denominator (5-point Average)
5-point Average Shareholders’ Equity		$	3,402.4		$	3,032.7		$	2,708.7		$	2,467.8		$	2,274.3		$	2,068.2		$	2,055.8
Rolling 12 Months Return on Average Shareholders' Equity (5-point Average)		12.1		%	12.4		%	10.8		%	7.7		%	9.7		%	8.5		%	8.5		%
Return on Shareholders’ Equity Excluding Goodwill1
Denominator (5-point Average)
5-point Average Shareholders’ Equity Excluding Goodwill1		$	2,293.8		$	2,082.3		$	1,916.5		$	1,833.3		$	1,797.6		$	1,745.2		$	1,732.8
Rolling 12 Months Return on Average Shareholders' Equity Excluding Goodwill (5-point Average)1		18.0		%	18.1		%	15.2		%	10.4		%	12.3		%	10.1		%	10.1		%
Return on Shareholders’ Equity Excluding Net Unrealized Gains on Fixed Maturities1
Denominator (5-point Average)
5-point Average Shareholders’ Equity Excluding Net Unrealized Gains on Fixed Maturities1		$	3,144.6		$	2,838.0		$	2,549.5		$	2,299.9		$	2,081.0		$	1,850.2		$	1,827.3
Rolling 12 Months Return on Average Shareholders' Equity Excluding Net Unrealized Gains on Fixed Maturities (5-point Average)1		13.1		%	13.3		%	11.4		%	8.3		%	10.6		%	9.5		%	9.6		%
Return on Shareholders’ Equity Excluding Net Unrealized Gains on Fixed Maturities and Goodwill1
Denominator (5-point Average)
5-point Average Shareholders’ Equity Excluding Net Unrealized Gains on Fixed Maturities and Goodwill1		$	2,036.0		$	1,887.6		$	1,757.3		$	1,665.4		$	1,604.4		$	1,527.2		$	1,504.3
Rolling 12 Months Return on Average Shareholders' Equity Excluding Net Unrealized Gains on Fixed Maturities and Goodwill (5-point Average)1		20.3		%	19.9		%	16.6		%	11.4		%	13.7		%	11.5		%	11.6		%
1 Non-GAAP financial measure. See definitions beginning on page 33.

Page 8

Kemper Corporation Capital Metrics (Dollars and Shares in Millions, Except Per Share Amounts) (Unaudited)
	Three Months Ended
		Sep 30, 2019			Jun 30, 2019			Mar 31, 2019			Dec 31, 2018			Sep 30, 2018			Jun 30, 2018			Mar 31, 2018
Debt and Total Capitalization
Debt		$	778.7		$	873.3		$	908.5		$	909.0		$	1,123.7		$	951.8		$	592.3
Shareholders’ Equity		3,894.2			3,683.7			3,320.1			3,050.1			3,063.8			2,045.7			2,063.8
Total Capitalization		$	4,672.9		$	4,557.0		$	4,228.6		$	3,959.1		$	4,187.5		$	2,997.5		$	2,656.1
Ratio of Debt to Shareholders’ Equity		20.0		%	23.7		%	27.4		%	29.8		%	36.7		%	46.5		%	28.7		%
Ratio of Debt to Total Capitalization		16.7		%	19.2		%	21.5		%	23.0		%	26.8		%	31.8		%	22.3		%
Parent Company Liquidity
Kemper Holding Company Cash and Investments		$	169.1		$	312.7		$	118.6		$	100.6		$	91.3		$	708.6		$	184.4
Borrowings Available Under Credit Agreement		400.0			400.0			300.0			300.0			300.0			300.0			225.0
Parent Company Liquidity		$	569.1		$	712.7		$	418.6		$	400.6		$	391.3		$	1,008.6		$	409.4
Capital Returned to Shareholders
Cash Dividends Paid		16.7			16.2			16.2			15.6			15.6			12.4			12.5

Page 9

Kemper Corporation Debt Outstanding and Ratings (Dollars in Millions) (Unaudited)
	Sep 30, 2019		Jun 30, 2019		Mar 31, 2019		Dec 31, 2018		Sep 30, 2018		Jun 30, 2018		Mar 31, 2018
Kemper Corporation:
Term Loan due June 29, 2020	$	—	$	—	$	34.9	$	34.9	$	249.4	$	249.4	$	—
Term Loan due July 5, 2023	49.9		—		—		—		—		$	—	$	—
Senior Notes at Amortized Cost:
5.0% Senior Notes due September 19, 2022	280.3		280.6		281.0		281.5		281.7		—		—
4.35% Senior Notes due February 15, 2025	448.5		448.5		448.4		448.4		448.4		448.2		448.1
7.375% Subordinated Debentures due February 27, 2054 at Amortized Cost	—		144.2		144.2		144.2		144.2		144.2		144.2
Debt Outstanding	$	778.7	$	873.3	$	908.5	$	909.0	$	1,123.7	$	841.8	$	592.3
Federal Home Loan Bank Advances to Insurance Subsidiaries:
Reported as Collateralized Investment Borrowings:
Federal Home Loan Bank of Chicago	$	137.6	$	155.0	$	187.7	$	10.0	$	10.0	$	10.0	$	10.0
Reported as Debt Outstanding:
Federal Home Loan Bank of Dallas	$	—	$	—	$	—	$	—	$	—	$	55.0	$	—
Federal Home Loan Bank of Chicago	—		—		—		—		—		55.0		—
	A.M. Best		Moody’s		S&P		Fitch
As of Date of Financial Supplement
Kemper Debt Ratings:
5.0% Senior Notes due September 19, 2022	bbb-		Baa3		BBB-		—
4.35% Senior Notes due February 15, 2025	bbb-		Baa3		BBB-		BBB-
7.375% Subordinated Debentures due February 27, 2054 at Amortized Cost	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 Insurance Company	A-		A3		A-		NR

NR - Not Rated

Page 10

Kemper Corporation Segment Revenues (Dollars in Millions) (Unaudited)
	Three Months Ended																						Nine Months Ended
		Sep 30, 2019			Jun 30, 2019			Mar 31, 2019			Dec 31, 2018			Sep 30, 2018			Jun 30, 2018			Mar 31, 2018			Sep 30, 2019			Sep 30, 2018
Revenues:
Preferred Property & Casualty Insurance:
Earned Premiums:
Preferred Automobile		$	119.7		$	117.9		$	115.4		$	115.2		$	111.4		$	108.7		$	104.9		$	353.0		$	325.0
Homeowners		61.5			60.8			60.3			63.6			62.5			62.2			61.8			182.6			186.5
Other Personal		9.8			9.8			9.9			10.0			10.1			10.2			10.1			29.5			30.4
Total Preferred Property & Casualty Insurance Earned Premium		191.0			188.5			185.6			188.8			184.0			181.1			176.8			565.1			541.9
Net Investment Income		12.0			12.3			8.3			14.0			20.1			14.0			13.7			32.6			47.8
Total Preferred Property & Casualty Insurance Revenues		203.0			200.8			193.9			202.8			204.1			195.1			190.5			597.7			589.7
Specialty Property & Casualty Insurance:
Earned Premiums:
Specialty Automobile		719.2			703.7			669.6			660.5			655.3			307.5			266.2			2,092.5			1,229.0
Commercial Automobile		64.2			62.3			59.7			57.3			55.9			12.5			12.2			186.2			80.6
Total Specialty Property & Casualty Insurance Earned Premium		783.4			766.0			729.3			717.8			711.2			320.0			278.4			2,278.7			1,309.6
Net Investment Income		28.8			28.9			21.5			22.6			20.7			10.2			9.9			79.2			40.8
Other Income		4.4			1.0			0.8			0.8			0.9			0.4			0.3			6.2			1.6
Total Specialty Property & Casualty Insurance Revenues		816.6			795.9			751.6			741.2			732.8			330.6			288.6			2,364.1			1,352.0
Life & Health Insurance:
Earned Premiums:
Life		96.2			97.0			95.8			94.1			95.2			95.4			93.7			289.0			284.3
Accident and Health		47.6			47.9			46.9			45.5			44.9			43.8			43.3			142.4			132.0
Property		17.0			17.2			17.2			17.4			17.6			17.8			17.6			51.4			53.0
Total Life & Health Insurance Earned Premiums		160.8			162.1			159.9			157.0			157.7			157.0			154.6			482.8			469.3
Net Investment Income		49.7			53.0			51.7			51.7			51.0			54.5			53.7			154.4			159.2
Other Income		2.9			1.6			1.1			1.1			1.2			0.9			0.8			5.6			2.9
Total Life & Health Insurance Revenues		213.4			216.7			212.7			209.8			209.9			212.4			209.1			642.8			631.4
Total Segment Revenues		1,233.0			1,213.4			1,158.2			1,153.8			1,146.8			738.1			688.2			3,604.6			2,573.1
Income (Loss) from Change in Fair Value of Equity and Convertible Securities		9.8			25.5			64.4			(76.4		)	11.0			0.4			0.7			99.7			12.1
Net Realized Gains on Sales of Investments		1.7			21.3			16.1			16.4			3.6			3.8			2.6			39.1			10.0
Net Impairment Losses Recognized in Earnings		(1.8		)	(6.7		)	(3.6		)	(2.2		)	(1.8		)	—			(0.5		)	(12.1		)	(2.3		)
Other		1.1			21.9			1.2			3.1			35.9			(0.4		)	2.0			24.2			37.5
Total Revenues		$	1,243.8		$	1,275.4		$	1,236.3		$	1,094.7		$	1,195.5		$	741.9		$	693.0		$	3,755.5		$	2,630.4

Page 11

Kemper Corporation Segment Operating Results (Dollars in Millions)  (Unaudited)
	Three Months Ended																							Nine Months Ended
		Sep 30, 2019			Jun 30, 2019			Mar 31, 2019			Dec 31, 2018			Sep 30, 2018			Jun 30, 2018				Mar 31, 2018			Sep 30, 2019			Sep 30, 2018
Segment Operating Profit:
Preferred Property & Casualty Insurance		$	26.5		$	6.4		$	3.3		$	6.6		$	14.1		$	(8.7	)		$	16.6		$	36.2		$	22.0
Specialty Property & Casualty Insurance		98.6			79.4			99.4			61.5			26.9			28.2				29.0			277.4			84.1
Life & Health Insurance		41.0			16.1			29.3			18.3			33.5			33.8				30.3			86.4			97.6
Total Segment Operating Profit		166.1			101.9			132.0			86.4			74.5			53.3				75.9			400.0			203.7
Corporate and Other Operating Income(Loss)		(3.1		)	7.7			(8.6		)	(11.4		)	21.4			(8.4		)		(5.5		)	(4.0		)	7.5
Total Operating Profit		163.0			109.6			123.4			75.0			95.9			44.9				70.4			396.0			211.2
Income (Loss) From:
Change in Fair Value of Equity and Convertible Securities		9.8			25.5			64.4			(76.4		)	11.0			0.4				0.7			99.7			12.1
Net Realized Gains on Sales of Investments		1.7			21.3			16.1			16.4			3.6			3.8				2.6			39.1			10.0
Net Impairment Losses Recognized in Earnings		(1.8		)	(6.7		)	(3.6		)	(2.2		)	(1.8		)	—				(0.5		)	(12.1		)	(2.3		)
Acquisition Related Transaction Integration and Other Costs		(5.4		)	(1.2		)	(5.6		)	(6.7		)	(28.2		)	(3.6		)		(6.2		)	(12.2		)	(38.0		)
Loss from Early Extinguishment of Debt		(5.8		)	—			—			—			—			—			—	—			(5.8		)	—
Income from Continuing Operations before Income Taxes		$	161.5		$	148.5		$	194.7		$	6.1		$	80.5		$	45.5			$	67.0		$	504.7		$	193.0
Segment Net Operating Income:
Preferred Property & Casualty Insurance		$	21.1		$	5.2		$	2.8		$	6.0		$	12.2		$	(6.0	)		$	13.5		$	29.1		$	19.7
Specialty Property & Casualty Insurance		78.5			62.7			79.6			48.5			21.5			22.4				23.4			220.8			67.3
Life & Health Insurance		33.4			13.3			23.1			13.6			27.1			26.7				24.1			69.8			77.9
Total Segment Net Operating Income		133.0			81.2			105.5			68.1			60.8			43.1				61.0			319.7			164.9
Corporate and Other Net Operating Income (Loss) From:
Effects of Tax Law Changes		—			—			—			0.4			26.0			—				—			—			26.0
Partial Satisfaction of Legal Judgment		—			15.9			—			—			28.2			—				—			15.9			28.2
Other		(3.0		)	(5.6		)	(6.6		)	(8.6		)	(10.5		)	(6.6		)		(3.5		)	(15.2		)	(20.6		)
Corporate and Other Net Operating Income (Loss)		(3.0		)	10.3			(6.6		)	(8.2		)	43.7			(6.6		)		(3.5		)	0.7			33.6
Adjusted Consolidated Net Operating Income		130.0			91.5			98.9			59.9			104.5			36.5				57.5			320.4			198.5
Net Income (Loss) From:
Change in Fair Value of Equity and Convertible Securities		7.8			20.1			50.9			(60.4		)	8.7			0.3				0.6			78.8			9.6
Net Realized Gains on Sales of Investments		1.4			16.8			12.7			13.0			2.8			3.0				2.1			30.9			7.9
Net Impairment Losses Recognized in Earnings		(1.5		)	(5.3		)	(2.8		)	(1.8		)	(1.4		)	—				(0.4		)	(9.6		)	(1.8		)
Acquisition Related Transaction, Integration and Other Costs		(4.1		)	(1.0		)	(4.4		)	(5.7		)	(22.3		)	(2.3		)		(6.2		)	(9.5		)	(30.8		)
Loss from Early Extinguishment of Debt		(4.6		)	—			—			—			—			—				—			(4.6		)	—
Income from Continuing Operations		$	129.0		$	122.1		$	155.3		$	5.0		$	92.3		$	37.5			$	53.6		$	406.4		$	183.4

Page 12

Kemper Corporation Catastrophe Frequency and Severity (Dollars in Millions) (Unaudited)
	Nine Months Ended Sep 30, 2019
	Preferred Property & Casualty Insurance Segment			Specialty Property & Casualty Insurance Segment				Life & Health Insurance Segment			Consolidated
	Number of Events	Losses and LAE		Number of Events		Losses and LAE		Number of Events	Losses and LAE		Number of Events	Losses and LAE
Range of Losses and LAE Per Event:
Below $5	41	$	25.8	31		$	7.3	19	$	2.6	43	$	33.8
$5 - $10	2	12.0		—		—		—	—		2	13.0
$10 - $15	1	13.3		—		—		—	—		1	14.2
$15 - $20	—	—		—		—		—	—		—	—
$20 - $25	—	—		—		—		—	—		—	—
Greater Than $25	—	—		—		—		—	—		—	—
Total	44	$	51.1	31		$	7.3	19	$	2.6	46	$	61.0
	Nine Months Ended Sep 30, 2018
	Preferred Property & Casualty Insurance Segment			Specialty Property & Casualty Insurance Segment				Life & Health Insurance Segment			Consolidated
	Number of Events	Losses and LAE		Number of Events		Losses and LAE		Number of Events	Losses and LAE		Number of Events	Losses and LAE
Range of Losses and LAE Per Event:
Below $5	37	$	27.5	$	30	$	3.7	23	$	1.7	37	$	27.0
$5 - $10	2	15.4		—		—		—	—		3	21.6
$10 - $15	2	22.3		—		—		—	—		2	22.7
$15 - $20	—	—		—		—		—	—		—	—
$20 - $25	—	—		—		—		—	—		—	—
Greater Than $25	—	—		—		—		—	—		—	—
Total	41	$	65.2	30		$	3.7	23	$	1.7	42	$	71.3

Page 13

Kemper Corporation Preferred Property & Casualty Insurance Segment Results of Operations and Selected Financial Information (Dollars in Millions) (Unaudited)
	Three Months Ended																					Nine Months Ended
	Sep 30, 2019			Jun 30, 2019			Mar 31, 2019			Dec 31, 2018			Sep 30, 2018			Jun 30, 2018			Mar 31, 2018			Sep 30, 2019			Sep 30, 2018
Results of Operations
Net Premiums Written	$	189.6		$	197.5		$	179.6		$	184.7		$	195.6		$	198.0		$	170.5		$	566.7		$	564.1
Earned Premiums	$	191.0		$	188.5		$	185.6		$	188.8		$	184.0		$	181.1		$	176.8		$	565.1		$	541.9
Net Investment Income	12.0			12.3			8.3			14.0			20.1			14.0			13.7			32.6			47.8
Total Revenues	203.0			200.8			193.9			202.8			204.1			195.1			190.5			597.7			589.7
Incurred Losses and LAE related to:
Current Year:
Non-catastrophe Losses and LAE	121.7			119.1			120.8			120.8			116.6			107.8			114.2			361.6			338.6
Catastrophe Losses and LAE	11.9			22.6			16.6			21.4			18.3			40.3			7.3			51.1			65.9
Prior Years:
Non-catastrophe Losses and LAE	(1.1		)	(4.3		)	(5.1		)	(3.0		)	(1.9		)	0.6			4.2			(10.5		)	2.9
Catastrophe Losses and LAE	(15.4		)	(0.9		)	1.0			(0.8		)	(0.2		)	(1.8		)	(5.4		)	(15.3		)	(7.4		)
Total Incurred Losses and LAE	117.1			136.5			133.3			138.4			132.8			146.9			120.3			386.9			400.0
Insurance Expenses	59.4			57.9			57.3			57.8			57.2			56.9			53.6			174.6			167.7
Operating Profit (Loss)	26.5			6.4			3.3			6.6			14.1			(8.7		)	16.6			36.2			22.0
Income Tax Benefit (Expense)	(5.4		)	(1.2		)	(0.5		)	(0.6		)	(1.9		)	2.7			(3.1		)	(7.1		)	(2.3		)
Segment Net Operating Income (Loss)	$	21.1		$	5.2		$	2.8		$	6.0		$	12.2		$	(6.0	)	$	13.5		$	29.1		$	19.7
Ratios Based On Earned Premiums
Current Year Non-catastrophe Losses and LAE Ratio	63.8		%	63.2		%	65.1		%	64.0		%	63.4		%	59.5		%	64.6		%	64.1		%	62.5		%
Current Year Catastrophe Losses and LAE Ratio	6.2			12.0			8.9			11.3			9.9			22.3			4.1			9.0			12.2
Prior Years Non-catastrophe Losses and LAE Ratio	(0.6		)	(2.3		)	(2.7		)	(1.6		)	(1.0		)	0.3			2.4			(1.9		)	0.5
Prior Years Catastrophe Losses and LAE Ratio	(8.1		)	(0.5		)	0.5			(0.4		)	(0.1		)	(1.0		)	(3.1		)	(2.7		)	(1.4		)
Total Incurred Loss and LAE Ratio	61.3			72.4			71.8			73.3			72.2			81.1			68.0			68.5			73.8
Insurance Expense Ratio	31.1			30.7			30.9			30.6			31.1			31.4			30.3			30.9			30.9
Combined Ratio	92.4		%	103.1		%	102.7		%	103.9		%	103.3		%	112.5		%	98.3		%	99.4		%	104.7		%
Underlying Combined Ratio1
Current Year Non-catastrophe Losses and LAE Ratio	63.8		%	63.2		%	65.1		%	64.0		%	63.4		%	59.5		%	64.6		%	64.1		%	62.5		%
Insurance Expense Ratio	31.1			30.7			30.9			30.6			31.1			31.4			30.3			30.9			30.9
Underlying Combined Ratio	94.9		%	93.9		%	96.0		%	94.6		%	94.5		%	90.9		%	94.9		%	95.0		%	93.4		%
Non-GAAP Measure Reconciliation
Combined Ratio as Reported	92.4		%	103.1		%	102.7		%	103.9		%	103.3		%	112.5		%	98.3		%	99.4		%	104.7		%
Less:
Current Year Catastrophe Losses and LAE Ratio	6.2			12.0			8.9			11.3			9.9			22.3			4.1			9.0			12.2
Prior Years Non-catastrophe Losses and LAE Ratio	(0.6		)	(2.3		)	(2.7		)	(1.6		)	(1.0		)	0.3			2.4			(1.9		)	0.5
Prior Years Catastrophe Losses and LAE Ratio	(8.1		)	(0.5		)	0.5			(0.4		)	(0.1		)	(1.0		)	(3.1		)	(2.7		)	(1.4		)
Underlying Combined Ratio	94.9		%	93.9		%	96.0		%	94.6		%	94.5		%	90.9		%	94.9		%	95.0		%	93.4		%
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 14

Kemper Corporation Preferred Property & Casualty Insurance Segment Results of Operations and Selected Financial Information (continued) (Dollars in Millions) (Unaudited)
	Sep 30, 2019		Jun 30, 2019		Mar 31, 2019		Dec 31, 2018		Sep 30, 2018		Jun 30, 2018		Mar 31, 2018
Insurance Reserves:
Preferred Automobile	$	267.3	$	264.5	$	268.0	$	270.0	$	272.3	$	276.3	$	278.8
Homeowners	108.8		131.6		133.5		147.9		139.4		137.2		124.6
Other Personal	32.2		34.0		34.3		35.0		32.6		34.8		35.3
Insurance Reserves	$	408.3	$	430.1	$	435.8	$	452.9	$	444.3	$	448.3	$	438.7
Insurance Reserves:
Loss and Allocated LAE Reserves:
Case and Allocated LAE	$	277.8	$	278.5	$	290.2	$	312.5	$	304.4	$	307.7	$	313.6
Incurred but Not Reported	100.4		120.2		113.0		110.0		109.0		109.6		95.5
Total Loss Reserves	378.2		398.7		403.2		422.5		413.4		417.3		409.1
Unallocated LAE Reserves	30.1		31.4		32.6		30.4		30.9		31.0		29.6
Insurance Reserves	$	408.3	$	430.1	$	435.8	$	452.9	$	444.3	$	448.3	$	438.7

Page 15

Kemper Corporation Preferred 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, 2019			Jun 30, 2019			Mar 31, 2019			Dec 31, 2018			Sep 30, 2018			Jun 30, 2018			Mar 31, 2018			Sep 30, 2019			Sep 30, 2018
Results of Operations
Net Premiums Written		$	117.5		$	123.4		$	116.5		$	115.7		$	119.3		$	120.9		$	106.2		$	357.4		$	346.4
Earned Premiums		$	119.7		$	117.9		$	115.4		$	115.2		$	111.4		$	108.7		$	104.9		$	353.0		$	325.0
Net Investment Income		5.6			5.8			3.9			6.5			9.3			6.5			6.3			15.3			22.1
Total Revenues		125.3			123.7			119.3			121.7			120.7			115.2			111.2			368.3			347.1
Incurred Losses and LAE related to:
Current Year:
Non-catastrophe Losses and LAE		83.2			82.9			80.2			85.6			74.9			74.7			73.6			246.3			223.2
Catastrophe Losses and LAE		2.1			1.7			2.5			0.4			2.3			3.9			0.6			6.3			6.8
Prior Years:
Non-catastrophe Losses and LAE		(0.5		)	(3.7		)	(1.2		)	(2.2		)	(2.6		)	(1.4		)	0.5			(5.4		)	(3.5		)
Catastrophe Losses and LAE		(0.1		)	—			(0.1		)	—			—			(0.1		)	—			(0.2		)	(0.1		)
Total Incurred Losses and LAE		84.7			80.9			81.4			83.8			74.6			77.1			74.7			247.0			226.4
Insurance Expenses		36.8			35.5			35.0			34.9			34.0			32.1			31.7			107.3			97.8
Operating Profit		3.8			7.3			2.9			3.0			12.1			6.0			4.8			14.0			22.9
Income Tax Expense		(0.7		)	(1.5		)	(0.5		)	(0.3		)	(2.0		)	(1.0		)	(0.8		)	(2.7		)	(3.8		)
Total Product Line Net Operating Income (Loss)		$	3.1		$	5.8		$	2.4		$	2.7		$	10.1		$	5.0		$	4.0		$	11.3		$	19.1
Ratios Based On Earned Premiums
Current Year Non-catastrophe Losses and LAE Ratio		69.5		%	70.3		%	69.4		%	74.3		%	67.2		%	68.7		%	70.1		%	69.8		%	68.7		%
Current Year Catastrophe Losses and LAE Ratio		1.8			1.4			2.2			0.3			2.1			3.6			0.6			1.8			2.1
Prior Years Non-catastrophe Losses and LAE Ratio		(0.4		)	(3.1		)	(1.0		)	(1.9		)	(2.3		)	(1.3		)	0.5			(1.5		)	(1.1		)
Prior Years Catastrophe Losses and LAE Ratio		(0.1		)	—			(0.1		)	—			—			(0.1		)	—			(0.1		)	—
Total Incurred Loss and LAE Ratio		70.8			68.6			70.5			72.7			67.0			70.9			71.2			70.0			69.7
Insurance Expense Ratio		30.7			30.1			30.3			30.3			30.5			29.5			30.2			30.4			30.1
Combined Ratio		101.5		%	98.7		%	100.8		%	103.0		%	97.5		%	100.4		%	101.4		%	100.4		%	99.8		%
Underlying Combined Ratio1
Current Year Non-catastrophe Losses and LAE Ratio		69.5		%	70.3		%	69.4		%	74.3		%	67.2		%	68.7		%	70.1		%	69.8		%	68.7		%
Insurance Expense Ratio		30.7			30.1			30.3			30.3			30.5			29.5			30.2			30.4			30.1
Underlying Combined Ratio		100.2		%	100.4		%	99.7		%	104.6		%	97.7		%	98.2		%	100.3		%	100.2		%	98.8		%
Non-GAAP Measure Reconciliation
Combined Ratio		101.5		%	98.7		%	100.8		%	103.0		%	97.5		%	100.4		%	101.4		%	100.4		%	99.8		%
Less:
Current Year Catastrophe Losses and LAE Ratio		1.8			1.4			2.2			0.3			2.1			3.6			0.6			1.8			2.1
Prior Years Non-catastrophe Losses and LAE Ratio		(0.4		)	(3.1		)	(1.0		)	(1.9		)	(2.3		)	(1.3		)	0.5			(1.5		)	(1.1		)
Prior Years Catastrophe Losses and LAE Ratio		(0.1		)	—			(0.1		)	—			—			(0.1		)	—			(0.1		)	—
Underlying Combined Ratio		100.2		%	100.4		%	99.7		%	104.6		%	97.7		%	98.2		%	100.3		%	100.2		%	98.8		%
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 16

Kemper Corporation Preferred Property & Casualty Insurance Segment Homeowners and Other Personal Insurance - Results of Operations and Selected Financial Information (Dollars in Millions) (Unaudited)
	Three Months Ended																						Nine Months Ended
		Sep 30, 2019			Jun 30, 2019			Mar 31, 2019			Dec 31, 2018			Sep 30, 2018			Jun 30, 2018			Mar 31, 2018			Sep 30, 2019			Sep 30, 2018
Results of Operations
Net Premiums Written		$	72.1		$	74.1		$	63.1		$	69.0		$	76.3		$	77.1		$	64.3		$	209.3		$	217.7
Earned Premiums		$	71.3		$	70.6		$	70.2		$	73.6		$	72.6		$	72.4		$	71.9		$	212.1		$	216.9
Net Investment Income		6.4			6.5			4.4			7.5			10.8			7.5			7.4			17.3			25.7
Total Revenues		77.7			77.1			74.6			81.1			83.4			79.9			79.3			229.4			242.6
Incurred Losses and LAE related to:
Current Year:
Non-catastrophe Losses and LAE		38.5			36.2			40.6			35.2			41.7			33.1			40.6			115.3			115.4
Catastrophe Losses and LAE		9.8			20.9			14.1			21.0			16.0			36.4			6.7			44.8			59.1
Prior Years:
Non-catastrophe Losses and LAE		(0.6		)	(0.6		)	(3.9		)	(0.8		)	0.7			2.0			3.7			(5.1		)	6.4
Catastrophe Losses and LAE		(15.3		)	(0.9		)	1.1			(0.8		)	(0.2		)	(1.7		)	(5.4		)	(15.1		)	(7.3		)
Total Incurred Losses and LAE		32.4			55.6			51.9			54.6			58.2			69.8			45.6			139.9			173.6
Insurance Expenses		22.6			22.4			22.3			22.9			23.2			24.8			21.9			67.3			69.9
Operating Profit (Loss)		22.7			(0.9		)	0.4			3.6			2.0			(14.7		)	11.8			22.2			(0.9		)
Income Tax Benefit (Expense)		(4.7		)	0.3			—			(0.3		)	0.1			3.7			(2.3		)	(4.4		)	1.5
Total Product Line Net Operating Income (Loss)		$	18.0		$	(0.6	)	$	0.4		$	3.3		$	2.1		$	(11.0	)	$	9.5		$	17.8		$	0.6
Ratios Based On Earned Premiums
Current Year Non-catastrophe Losses and LAE Ratio		54.0		%	51.3		%	57.8		%	47.9		%	57.5		%	45.6		%	56.5		%	54.4		%	53.2		%
Current Year Catastrophe Losses and LAE Ratio		13.7			29.6			20.1			28.5			22.0			50.3			9.3			21.1			27.2
Prior Years Non-catastrophe Losses and LAE Ratio		(0.8		)	(0.8		)	(5.6		)	(1.1		)	1.0			2.8			5.1			(2.4		)	3.0
Prior Years Catastrophe Losses and LAE Ratio		(21.5		)	(1.3		)	1.6			(1.1		)	(0.3		)	(2.3		)	(7.5		)	(7.1		)	(3.4		)
Total Incurred Loss and LAE Ratio		45.4			78.8			73.9			74.2			80.2			96.4			63.4			66.0			80.0
Insurance Expense Ratio		31.7			31.7			31.8			31.1			32.0			34.3			30.5			31.7			32.2
Combined Ratio		77.1		%	110.5		%	105.7		%	105.3		%	112.2		%	130.7		%	93.9		%	97.7		%	112.2		%
Underlying Combined Ratio1
Current Year Non-catastrophe Losses and LAE Ratio		54.0		%	51.3		%	57.8		%	47.9		%	57.5		%	45.6		%	56.5		%	54.4		%	53.2		%
Insurance Expense Ratio		31.7			31.7			31.8			31.1			32.0			34.3			30.5			31.7			32.2
Underlying Combined Ratio		85.7		%	83.0		%	89.6		%	79.0		%	89.5		%	79.9		%	87.0		%	86.1		%	85.4		%
Non-GAAP Measure Reconciliation
Combined Ratio		77.1		%	110.5		%	105.7		%	105.3		%	112.2		%	130.7		%	93.9		%	97.7		%	112.2		%
Less:
Current Year Catastrophe Losses and LAE Ratio		13.7			29.6			20.1			28.5			22.0			50.3			9.3			21.1			27.2
Prior Years Non-catastrophe Losses and LAE Ratio		(0.8		)	(0.8		)	(5.6		)	(1.1		)	1.0			2.8			5.1			(2.4		)	3.0
Prior Years Catastrophe Losses and LAE Ratio		(21.5		)	(1.3		)	1.6			(1.1		)	(0.3		)	(2.3		)	(7.5		)	(7.1		)	(3.4		)
Underlying Combined Ratio		85.7		%	83.0		%	89.6		%	79.0		%	89.5		%	79.9		%	87.0		%	86.1		%	85.4		%
1Underlying Combined Ratio is a non-GAAP measure, which is computed as the difference between three operating ratios: the combined ratio, the effect of catastrophes (excluding development of prior-year catastrophes) on the combined ratio and the effect of prior-year reserve development at the reporting date (including development on prior-year catastrophes) on the combined ratio.

Page 17

Kemper Corporation Preferred 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, 2019			Jun 30, 2019			Mar 31, 2019			Dec 31, 2018			Sep 30, 2018			Jun 30, 2018			Mar 31, 2018			Sep 30, 2019			Sep 30, 2018
Results of Operations
Net Premiums Written		$	62.3		$	64.2		$	54.1		$	59.6		$	66.0		$	66.6		$	55.1		$	180.6		$	187.7
Earned Premiums		$	61.5		$	60.8		$	60.3		$	63.6		$	62.5		$	62.2		$	61.8		$	182.6		$	186.5
Net Investment Income		5.5			5.6			3.8			6.7			9.3			6.5			6.3			14.9			22.1
Total Revenues		67.0			66.4			64.1			70.3			71.8			68.7			68.1			197.5			208.6
Incurred Losses and LAE related to:
Current Year:
Non-catastrophe Losses and LAE		34.2			31.6			35.8			30.7			36.8			28.8			35.2			101.6			100.8
Catastrophe Losses and LAE		9.3			20.6			13.8			16.8			16.0			35.9			6.5			43.7			58.4
Prior Years:
Non-catastrophe Losses and LAE		0.2			0.9			(1.1		)	0.3			1.8			2.7			5.6			—			10.1
Catastrophe Losses and LAE		(13.6		)	(1.0		)	1.0			(0.7		)	(0.1		)	(1.3		)	(5.1		)	(13.6		)	(6.5		)
Total Incurred Losses and LAE		30.1			52.1			49.5			47.1			54.5			66.1			42.2			131.7			162.8
Insurance Expenses		19.8			19.7			19.6			20.0			20.5			21.9			19.2			59.1			61.6
Operating Profit (Loss)		17.1			(5.4		)	(5.0		)	3.2			(3.2		)	(19.3		)	6.7			6.7			(15.8		)
Income Tax Benefit (Expense)		(3.5		)	1.2			1.1			(0.3		)	1.4			4.4			(1.3		)	(1.2		)	4.5
Total Product Line Net Operating Income (Loss)		$	13.6		$	(4.2	)	$	(3.9	)	$	2.9		$	(1.8	)	$	(14.9	)	$	5.4		$	5.5		$	(11.3	)
Ratios Based On Earned Premiums
Current Year Non-catastrophe Losses and LAE Ratio		55.6		%	51.9		%	59.3		%	48.3		%	58.9		%	46.4		%	57.0		%	55.6		%	54.1		%
Current Year Catastrophe Losses and LAE Ratio		15.1			33.9			22.9			26.4			25.6			57.7			10.5			23.9			31.3
Prior Years Non-catastrophe Losses and LAE Ratio		0.3			1.5			(1.8		)	0.5			2.9			4.3			9.1			—			5.4
Prior Years Catastrophe Losses and LAE Ratio		(22.1		)	(1.6		)	1.7			(1.1		)	(0.2		)	(2.1		)	(8.3		)	(7.4		)	(3.5		)
Total Incurred Loss and LAE Ratio		48.9			85.7			82.1			74.1			87.2			106.3			68.3			72.1			87.3
Insurance Expense Ratio		32.2			32.4			32.5			31.4			32.8			35.2			31.1			32.4			33.0
Combined Ratio		81.1		%	118.1		%	114.6		%	105.5		%	120.0		%	141.5		%	99.4		%	104.5		%	120.3		%
Underlying Combined Ratio1
Current Year Non-catastrophe Losses and LAE Ratio		55.6		%	51.9		%	59.3		%	48.3		%	58.9		%	46.4		%	57.0		%	55.6		%	54.1		%
Insurance Expense Ratio		32.2			32.4			32.5			31.4			32.8			35.2			31.1			32.4			33.0
Underlying Combined Ratio		87.8		%	84.3		%	91.8		%	79.7		%	91.7		%	81.6		%	88.1		%	88.0		%	87.1		%
Non-GAAP Measure Reconciliation
Combined Ratio		81.1		%	118.1		%	114.6		%	105.5		%	120.0		%	141.5		%	99.4		%	104.5		%	120.3		%
Less:
Current Year Catastrophe Losses and LAE Ratio		15.1			33.9			22.9			26.4			25.6			57.7			10.5			23.9			31.3
Prior Years Non-catastrophe Losses and LAE Ratio		0.3			1.5			(1.8		)	0.5			2.9			4.3			9.1			—			5.4
Prior Years Catastrophe Losses and LAE Ratio		(22.1		)	(1.6		)	1.7			(1.1		)	(0.2		)	(2.1		)	(8.3		)	(7.4		)	(3.5		)
Underlying Combined Ratio		87.8		%	84.3		%	91.8		%	79.7		%	91.7		%	81.6		%	88.1		%	88.0		%	87.1		%
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 18

Kemper Corporation Preferred Property & Casualty Insurance Segment Other Personal Insurance - Results of Operations and Selected Financial Information (Dollars in Millions) (Unaudited)
	Three Months Ended																						Nine Months Ended
		Sep 30, 2019			Jun 30, 2019			Mar 31, 2019			Dec 31, 2018			Sep 30, 2018			Jun 30, 2018			Mar 31, 2018			Sep 30, 2019			Sep 30, 2018
Results of Operations
Net Premiums Written		$	9.8		$	9.9		$	9.0		$	9.4		$	10.3		$	10.5		$	9.2		$	28.7		$	30.0
Earned Premiums		$	9.8		$	9.8		$	9.9		$	10.0		$	10.1		$	10.2		$	10.1		$	29.5		$	30.4
Net Investment Income		0.9			0.9			0.6			0.8			1.5			1.0			1.1			2.4			3.6
Total Revenues		10.7			10.7			10.5			10.8			11.6			11.2			11.2			31.9			34.0
Incurred Losses and LAE related to:
Current Year:
Non-catastrophe Losses and LAE		4.3			4.6			4.8			4.5			4.9			4.3			5.4			13.7			14.6
Catastrophe Losses and LAE		0.5			0.3			0.3			4.2			—			0.5			0.2			1.1			0.7
Prior Years:
Non-catastrophe Losses and LAE		(0.8		)	(1.5		)	(2.8		)	(1.1		)	(1.1		)	(0.7		)	(1.9		)	(5.1		)	(3.7		)
Catastrophe Losses and LAE		(1.7		)	0.1			0.1			(0.1		)	(0.1		)	(0.4		)	(0.3		)	(1.5		)	(0.8		)
Total Incurred Losses and LAE		2.3			3.5			2.4			7.5			3.7			3.7			3.4			8.2			10.8
Insurance Expenses		2.8			2.7			2.7			2.9			2.7			2.9			2.7			8.2			8.3
Operating Profit		5.6			4.5			5.4			0.4			5.2			4.6			5.1			15.5			14.9
Income Tax Expense		(1.2		)	(0.9		)	(1.1		)	—			(1.3		)	(0.7		)	(1.0		)	(3.2		)	(3.0		)
Total Product Line Net Operating Income		$	4.4		$	3.6		$	4.3		$	0.4		$	3.9		$	3.9		$	4.1		$	12.3		$	11.9
Ratios Based On Earned Premiums
Current Year Non-catastrophe Losses and LAE Ratio		43.9		%	46.9		%	48.5		%	45.0		%	48.5		%	42.2		%	53.5		%	46.5		%	48.0		%
Current Year Catastrophe Losses and LAE Ratio		5.1			3.1			3.0			42.0			—			4.9			2.0			3.7			2.3
Prior Years Non-catastrophe Losses and LAE Ratio		(8.2		)	(15.3		)	(28.3		)	(11.0		)	(10.9		)	(6.9		)	(18.8		)	(17.3		)	(12.2		)
Prior Years Catastrophe Losses and LAE Ratio		(17.3		)	1.0			1.0			(1.0		)	(1.0		)	(3.9		)	(3.0		)	(5.1		)	(2.6		)
Total Incurred Loss and LAE Ratio		23.5			35.7			24.2			75.0			36.6			36.3			33.7			27.8			35.5
Insurance Expense Ratio		28.6			27.6			27.3			29.0			26.7			28.4			26.7			27.8			27.3
Combined Ratio		52.1		%	63.3		%	51.5		%	104.0		%	63.3		%	64.7		%	60.4		%	55.6		%	62.8		%
Underlying Combined Ratio1
Current Year Non-catastrophe Losses and LAE Ratio		43.9		%	46.9		%	48.5		%	45.0		%	48.5		%	42.2		%	53.5		%	46.5		%	48.0		%
Insurance Expense Ratio		28.6			27.6			27.3			29.0			26.7			28.4			26.7			27.8			27.3
Underlying Combined Ratio		72.5		%	74.5		%	75.8		%	74.0		%	75.2		%	70.6		%	80.2		%	74.3		%	75.3		%
Non-GAAP Measure Reconciliation
Combined Ratio		52.1		%	63.3		%	51.5		%	104.0		%	63.3		%	64.7		%	60.4		%	55.6		%	62.8		%
Less:
Current Year Catastrophe Losses and LAE Ratio		5.1			3.1			3.0			42.0			—			4.9			2.0			3.7			2.3
Prior Years Non-catastrophe Losses and LAE Ratio		(8.2		)	(15.3		)	(28.3		)	(11.0		)	(10.9		)	(6.9		)	(18.8		)	(17.3		)	(12.2		)
Prior Years Catastrophe Losses and LAE Ratio		(17.3		)	1.0			1.0			(1.0		)	(1.0		)	(3.9		)	(3.0		)	(5.1		)	(2.6		)
Underlying Combined Ratio		72.5		%	74.5		%	75.8		%	74.0		%	75.2		%	70.6		%	80.2		%	74.3		%	75.3		%
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 19

Kemper Corporation Specialty Property & Casualty Insurance Segment Results of Operations and Selected Financial Information (Dollars in Millions) (Unaudited)
	Three Months Ended																						Nine Months Ended
		Sep 30, 2019			Jun 30, 2019			Mar 31, 2019			Dec 31, 2018			Sep 30, 2018			Jun 30, 2018			Mar 31, 2018			Sep 30, 2019			Sep 30, 2018
Results of Operations
Net Premiums Written		$	815.0		$	804.7		$	809.1		$	674.7		$	735.4		$	338.9		$	318.4		$	2,428.8		$	1,392.7
Earned Premiums		$	783.4		$	766.0		$	729.3		$	717.8		$	711.2		$	320.0		$	278.4		$	2,278.7		$	1,309.6
Net Investment Income		28.8			28.9			21.5			22.6			20.7			10.2			9.9			79.2			40.8
Other Income		4.4			1.0			0.8			0.8			0.9			0.4			0.3			6.2			1.6
Total Revenues		816.6			795.9			751.6			741.2			732.8			330.6			288.6			2,364.1			1,352.0
Incurred Losses and LAE related to:
Current Year:
Non-catastrophe Losses and LAE		579.4			579.2			544.3			530.3			527.6			247.2			212.3			1,702.9			987.1
Catastrophe Losses and LAE		2.3			4.4			0.6			1.0			1.4			2.1			0.2			7.3			3.7
Prior Years:
Non-catastrophe Losses and LAE		(4.1		)	(8.6		)	(18.3		)	—			(1.6		)	4.1			(0.5		)	(31.0		)	2.0
Catastrophe Losses and LAE		0.2			(0.1		)	0.2			—			—			—			(0.3		)	0.3			(0.3		)
Total Incurred Losses and LAE		577.8			574.9			526.8			531.3			527.4			253.4			211.7			1,679.5			992.5
Insurance Expenses		139.2			140.9			124.8			148.0			176.8			49.0			47.9			404.9			273.7
Other Expenses		1.0			0.7			0.6			0.4			1.7			—			—			2.3			1.7
Operating Profit		98.6			79.4			99.4			61.5			26.9			28.2			29.0			277.4			84.1
Income Tax Expense		(20.1		)	(16.7		)	(19.8		)	(13.0		)	(5.4		)	(5.8		)	(5.6		)	(56.6		)	(16.8		)
Segment Net Operating Income		$	78.5		$	62.7		$	79.6		$	48.5		$	21.5		$	22.4		$	23.4		$	220.8		$	67.3
Ratios Based On Earned Premiums
Current Year Non-catastrophe Losses and LAE Ratio		74.0		%	75.6		%	74.6		%	73.9		%	74.2		%	77.2		%	76.2		%	74.8		%	75.3		%
Current Year Catastrophe Losses and LAE Ratio		0.3			0.6			0.1			0.1			0.2			0.7			0.1			0.3			0.3
Prior Years Non-catastrophe Losses and LAE Ratio		(0.5		)	(1.1		)	(2.5		)	—			(0.2		)	1.3			(0.2		)	(1.4		)	0.2
Prior Years Catastrophe Losses and LAE Ratio		—			—			—			—			—			—			(0.1		)	—			—
Total Incurred Loss and LAE Ratio		73.8			75.1			72.2			74.0			74.2			79.2			76.0			73.7			75.8
Insurance Expense Ratio		17.8			18.4			17.1			20.6			24.9			15.3			17.2			17.8			20.9
Combined Ratio		91.6		%	93.5		%	89.3		%	94.6		%	99.1		%	94.5		%	93.2		%	91.5		%	96.7		%
Underlying Combined Ratio1
Current Year Non-catastrophe Losses and LAE Ratio		74.0		%	75.6		%	74.6		%	73.9		%	74.2		%	77.2		%	76.2		%	74.8		%	75.3		%
Insurance Expense Ratio		17.8			18.4			17.1			20.6			24.9			15.3			17.2			17.8			20.9
Underlying Combined Ratio		91.8		%	94.0		%	91.7		%	94.5		%	99.1		%	92.5		%	93.4		%	92.6		%	96.2		%
Non-GAAP Measure Reconciliation
Combined Ratio as Reported		91.6		%	93.5		%	89.3		%	94.6		%	99.1		%	94.5		%	93.2		%	91.5		%	96.7		%
Less:
Current Year Catastrophe Losses and LAE Ratio		0.3			0.6			0.1			0.1			0.2			0.7			0.1			0.3			0.3
Prior Years Non-catastrophe Losses and LAE Ratio		(0.5		)	(1.1		)	(2.5		)	—			(0.2		)	1.3			(0.2		)	(1.4		)	0.2
Prior Years Catastrophe Losses and LAE Ratio		—			—			—			—			—			—			(0.1		)	—			—
Underlying Combined Ratio		91.8		%	94.0		%	91.7		%	94.5		%	99.1		%	92.5		%	93.4		%	92.6		%	96.2		%
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 20

Kemper Corporation Specialty Property & Casualty Insurance Segment Specialty Personal Automobile Insurance - Results of Operations and Selected Financial Information (Dollars in Millions) (Unaudited)
	Three Months Ended																						Nine Months Ended
		Sep 30, 2019			Jun 30, 2019			Mar 31, 2019			Dec 31, 2018			Sep 30, 2018			Jun 30, 2018			Mar 31, 2018			Sep 30, 2019			Sep 30, 2018
Results of Operations
Net Premiums Written		$	749.5		$	734.5		$	742.2		$	618.5		$	679.1		$	325.4		$	304.9		$	2,226.2		$	1,309.4
Earned Premiums		$	719.2		$	703.7		$	669.6		$	660.5		$	655.3		$	307.5		$	266.2		$	2,092.5		$	1,229.0
Net Investment Income		24.9			24.6			18.4			19.1			17.2			8.8			8.4			67.9			34.4
Other Income		4.3			0.9			0.8			0.7			0.9			0.3			0.3			6.0			1.5
Total Revenues		748.4			729.2			688.8			680.3			673.4			316.6			274.9			2,166.4			1,264.9
Incurred Losses and LAE related to:
Current Year:
Non-catastrophe Losses and LAE		538.2			537.0			498.8			492.0			485.6			237.8			202.8			1,574.0			926.2
Catastrophe Losses and LAE		2.0			4.1			0.5			0.7			1.3			1.7			0.2			6.6			3.2
Prior Years:
Non-catastrophe Losses and LAE		(1.8		)	(3.7		)	(14.4		)	2.4			(1.1		)	4.2			0.2			(19.9		)	3.3
Catastrophe Losses and LAE		0.2			—			0.1			—			—			—			(0.2		)	0.3			(0.2		)
Total Incurred Losses and LAE		538.6			537.4			485.0			495.1			485.8			243.7			203.0			1,561.0			932.5
Insurance Expenses		128.4			128.9			114.7			132.5			160.8			46.7			45.2			372.0			252.7
Other Expenses		1.0			0.7			0.6			0.4			1.6			—			—			2.3			1.6
Operating Profit		80.4			62.2			88.5			52.3			25.2			26.2			26.7			231.1			78.1
Income Tax Expense		(18.4		)	(13.0		)	(17.8		)	(10.9		)	(4.8		)	(5.4		)	(5.2		)	(49.2		)	(15.4		)
Total Product Line Net Operating Income		$	62.0		$	49.2		$	70.7		$	41.4		$	20.4		$	20.8		$	21.5		$	181.9		$	62.7
Ratios Based On Earned Premiums
Current Year Non-catastrophe Losses and LAE Ratio		74.9		%	76.3		%	74.5		%	74.5		%	74.1		%	77.3		%	76.2		%	75.3		%	75.3		%
Current Year Catastrophe Losses and LAE Ratio		0.3			0.6			0.1			0.1			0.2			0.6			0.1			0.3			0.3
Prior Years Non-catastrophe Losses and LAE Ratio		(0.3		)	(0.5		)	(2.2		)	0.4			(0.2		)	1.4			0.1			(1.0		)	0.3
Prior Years Catastrophe Losses and LAE Ratio		—			—			—			—			—			—			(0.1		)	—			—
Total Incurred Loss and LAE Ratio		74.9			76.4			72.4			75.0			74.1			79.3			76.3			74.6			75.9
Insurance Expense Ratio		17.9			18.3			17.1			20.1			24.5			15.2			17.0			17.8			20.6
Combined Ratio		92.8		%	94.7		%	89.5		%	95.1		%	98.6		%	94.5		%	93.3		%	92.4		%	96.5		%
Underlying Combined Ratio1
Current Year Non-catastrophe Losses and LAE Ratio		74.9		%	76.3		%	74.5		%	74.5		%	74.1		%	77.3		%	76.2		%	75.3		%	75.3		%
Insurance Expense Ratio		17.9			18.3			17.1			20.1			24.5			15.2			17.0			17.8			20.6
Underlying Combined Ratio		92.8		%	94.6		%	91.6		%	94.6		%	98.6		%	92.5		%	93.2		%	93.1		%	95.9		%
Non-GAAP Measure Reconciliation
Combined Ratio		92.8		%	94.7		%	89.5		%	95.1		%	98.6		%	94.5		%	93.3		%	92.4		%	96.5		%
Less:
Current Year Catastrophe Losses and LAE Ratio		0.3			0.6			0.1			0.1			0.2			0.6			0.1			0.3			0.3
Prior Years Non-catastrophe Losses and LAE Ratio		(0.3		)	(0.5		)	(2.2		)	0.4			(0.2		)	1.4			0.1			(1.0		)	0.3
Prior Years Catastrophe Losses and LAE Ratio		—			—			—			—			—			—			(0.1		)	—			—
Underlying Combined Ratio		92.8		%	94.6		%	91.6		%	94.6		%	98.6		%	92.5		%	93.2		%	93.1		%	95.9		%
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 21

Kemper Corporation Specialty Property & Casualty Insurance Segment Commercial Automobile Insurance - Results of Operations and Selected Financial Information (Dollars in Millions) (Unaudited)
	Three Months Ended																						Nine Months Ended
		Sep 30, 2019			Jun 30, 2019			Mar 31, 2019			Dec 31, 2018			Sep 30, 2018			Jun 30, 2018			Mar 31, 2018			Sep 30, 2019			Sep 30, 2018
Results of Operations
Net Premiums Written		$	65.5		$	70.2		$	66.9		$	56.2		$	56.3		$	13.5		$	13.5		$	202.6		$	83.3
Earned Premiums		$	64.2		$	62.3		$	59.7		$	57.3		$	55.9		$	12.5		$	12.2		$	186.2		$	80.6
Net Investment Income		3.9			4.3			3.1			3.5			3.5			1.4			1.5			11.3			6.4
Other Income		0.1			0.1			—			0.1			—			0.1			—			0.2			0.1
Total Revenues		68.2			66.7			62.8			60.9			59.4			14.0			13.7			197.7			87.1
Incurred Losses and LAE related to:
Current Year:
Non-catastrophe Losses and LAE		41.2			42.2			45.5			38.3			42.0			9.4			9.5			128.9			60.9
Catastrophe Losses and LAE		0.3			0.3			0.1			0.3			0.1			0.4			—			0.7			0.5
Prior Years:
Non-catastrophe Losses and LAE		(2.3		)	(4.9		)	(3.9		)	(2.4		)	(0.5		)	(0.1		)	(0.7		)	(11.1		)	(1.3		)
Catastrophe Losses and LAE		—			(0.1		)	0.1			—			—			—			(0.1		)	—			(0.1		)
Total Incurred Losses and LAE		39.2			37.5			41.8			36.2			41.6			9.7			8.7			118.5			60.0
Insurance Expenses		10.8			12.0			10.1			15.5			16.0			2.3			2.7			32.9			21.0
Other Expenses		—			—			—			—			0.1			—			—			—			0.1
Operating Profit		18.2			17.2			10.9			9.2			1.7			2.0			2.3			46.3			6.0
Income Tax Expense		(1.7		)	(3.7		)	(2.0		)	(2.1		)	(0.6		)	(0.4		)	(0.4		)	(7.4		)	(1.4		)
Total Product Line Net Operating Income		$	16.5		$	13.5		$	8.9		$	7.1		$	1.1		$	1.6		$	1.9		$	38.9		$	4.6
Ratios Based On Earned Premiums
Current Year Non-catastrophe Losses and LAE Ratio		64.2		%	67.7		%	76.1		%	66.9		%	75.1		%	75.2		%	77.8		%	69.2		%	75.5		%
Current Year Catastrophe Losses and LAE Ratio		0.5			0.5			0.2			0.5			0.2			3.2			—			0.4			0.6
Prior Years Non-catastrophe Losses and LAE Ratio		(3.6		)	(7.9		)	(6.5		)	(4.2		)	(0.9		)	(0.8		)	(5.7		)	(6.0		)	(1.6		)
Prior Years Catastrophe Losses and LAE Ratio		—			(0.1		)	0.2			—			—			—			(0.8		)	—			(0.1		)
Total Incurred Loss and LAE Ratio		61.1			60.2			70.0			63.2			74.4			77.6			71.3			63.6			74.4
Insurance Expense Ratio		16.8			19.3			16.9			27.1			28.6			18.4			22.1			17.7			26.1
Combined Ratio		77.9		%	79.5		%	86.9		%	90.3		%	103.0		%	96.0		%	93.4		%	81.3		%	100.5		%
Underlying Combined Ratio1
Current Year Non-catastrophe Losses and LAE Ratio		64.2		%	67.7		%	76.1		%	66.9		%	75.1		%	75.2		%	77.8		%	69.2		%	75.5		%
Insurance Expense Ratio		16.8			19.3			16.9			27.1			28.6			18.4			22.1			17.7			26.1
Underlying Combined Ratio		81.0		%	87.0		%	93.0		%	94.0		%	103.7		%	93.6		%	99.9		%	86.9		%	101.6		%
Non-GAAP Measure Reconciliation
Combined Ratio		77.9		%	79.5		%	86.9		%	90.3		%	103.0		%	96.0		%	93.4		%	81.3		%	100.5		%
Less:
Current Year Catastrophe Losses and LAE Ratio		0.5			0.5			0.2			0.5			0.2			3.2			—			0.4			0.6
Prior Years Non-catastrophe Losses and LAE Ratio		(3.6		)	(7.9		)	(6.5		)	(4.2		)	(0.9		)	(0.8		)	(5.7		)	(6.0		)	(1.6		)
Prior Years Catastrophe Losses and LAE Ratio		—			(0.1		)	0.2			—			—			—			(0.8		)	—			(0.1		)
Underlying Combined Ratio		81.0		%	87.0		%	93.0		%	94.0		%	103.7		%	93.6		%	99.9		%	86.9		%	101.6		%
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 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, 2019			Jun 30, 2019			Mar 31, 2019			Dec 31, 2018			Sep 30, 2018			Jun 30, 2018			Mar 31, 2018			Sep 30, 2019			Sep 30, 2018
Results of Operations
Earned Premiums:
Life		$	96.2		$	97.0		$	95.8		$	94.1		$	95.2		$	95.4		$	93.7		$	289.0		$	284.3
Accident and Health		47.6			47.9			46.9			45.5			44.9			43.8			43.3			142.4			132.0
Property		17.0			17.2			17.2			17.4			17.6			17.8			17.6			51.4			53.0
Earned Premiums		$	160.8		$	162.1		$	159.9		$	157.0		$	157.7		$	157.0		$	154.6		$	482.8		$	469.3
Net Investment Income		49.7			53.0			51.7			51.7			51.0			54.5			53.7			154.4			159.2
Other Income		2.9			1.6			1.1			1.1			1.2			0.9			0.8			5.6			2.9
Total Revenues		213.4			216.7			212.7			209.8			209.9			212.4			209.1			642.8			631.4
Policyholders’ Benefits and Incurred Losses and LAE		88.8			113.5			105.4			103.1			97.0			99.2			104.9			307.7			301.1
Insurance Expenses		83.6			87.1			78.0			88.4			79.4			79.4			73.9			248.7			232.7
Operating Profit		41.0			16.1			29.3			18.3			33.5			33.8			30.3			86.4			97.6
Income Tax Expense		(7.6		)	(2.8		)	(6.2		)	(4.7		)	(6.4		)	(7.1		)	(6.2		)	(16.6		)	(19.7		)
Segment Net Operating Income		$	33.4		$	13.3		$	23.1		$	13.6		$	27.1		$	26.7		$	24.1		$	69.8		$	77.9

	Sep 30, 2019		Jun 30, 2019		Mar 31, 2019		Dec 31, 2018		Sep 30, 2018		Jun 30, 2018		Mar 31, 2018
Insurance Reserves:
Future Policyholder Benefits	$	3,441.1	$	3,429.4	$	3,412.9	$	3,400.4	$	3,389.4	$	3,379.8	$	3,366.7
Incurred Losses and LAE Reserves:
Life	97.0		121.4		127.0		130.5		134.3		137.7		142.4
Accident and Health	28.1		30.2		28.6		27.8		27.7		26.0		25.2
Property	3.5		4.2		3.6		4.4		4.5		3.8		4.1
Total Incurred Losses and LAE Reserves	128.6		155.8		159.2		162.7		166.5		167.5		171.7
Insurance Reserves	$	3,569.7	$	3,585.2	$	3,572.1	$	3,563.1	$	3,555.9	$	3,547.3	$	3,538.4

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, 2019			Jun 30, 2019			Mar 31, 2019			Dec 31, 2018			Sep 30, 2018			Jun 30, 2018			Mar 31, 2018			Sep 30, 2019			Sep 30, 2018
Results of Operations
Earned Premiums		$	96.2		$	97.0		$	95.8		$	94.1		$	95.2		$	95.4		$	93.7		$	289.0		$	284.3
Net Investment Income		47.8			51.0			49.9			49.6			48.9			52.4			51.7			148.7			153.0
Other Income		2.8			1.6			1.0			1.0			0.9			0.9			0.7			5.4			2.5
Total Revenues		146.8			149.6			146.7			144.7			145.0			148.7			146.1			443.1			439.8
Policyholders’ Benefits and Incurred Losses and LAE		56.0			75.9			72.8			69.9			66.7			69.4			73.4			204.7			209.5
Insurance Expenses		53.3			56.7			49.9			57.3			51.8			51.2			47.4			159.9			150.4
Operating Profit		37.5			17.0			24.0			17.5			26.5			28.1			25.3			78.5			79.9
Income Tax Expense		(7.0		)	(3.0		)	(5.1		)	(5.1		)	(4.5		)	(6.0		)	(5.1		)	(15.1		)	(15.6		)
Total Product Line Operating Income		$	30.5		$	14.0		$	18.9		$	12.4		$	22.0		$	22.1		$	20.2		$	63.4		$	64.3

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, 2019			Jun 30, 2019			Mar 31, 2019			Dec 31, 2018			Sep 30, 2018			Jun 30, 2018			Mar 31, 2018			Sep 30, 2019			Sep 30, 2018
Results of Operations
Earned Premiums	$	47.6		$	47.9		$	46.9		$	45.5		$	44.9		$	43.8		$	43.3		$	142.4		$	132.0
Net Investment Income	1.5			1.5			1.5			1.5			1.5			1.6			1.5			4.5			4.6
Other Income	0.1			—			0.1			0.1			0.3			—			0.1			0.2			0.4
Total Revenues	49.2			49.4			48.5			47.1			46.7			45.4			44.9			147.1			137.0
Policyholders’ Benefits and Incurred Losses and LAE	27.6			30.6			26.3			26.1			23.5			24.1			25.2			84.5			72.8
Insurance Expenses	22.7			22.4			20.8			23.3			19.7			19.7			19.5			65.9			58.9
Operating Profit (Loss)	(1.1		)	(3.6		)	1.4			(2.3		)	3.5			1.6			0.2			(3.3		)	5.3
Income Tax Benefit (Expense)	0.3			0.8			(0.3		)	0.8			(1.0		)	(0.3		)	(0.1		)	0.8			(1.4		)
Total Product Line Net Operating Income (Loss)	$	(0.8	)	$	(2.8	)	$	1.1		$	(1.5	)	$	2.5		$	1.3		$	0.1		$	(2.5	)	$	3.9

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, 2019			Jun 30, 2019			Mar 31, 2019			Dec 31, 2018			Sep 30, 2018			Jun 30, 2018			Mar 31, 2018			Sep 30, 2019			Sep 30, 2018
Results of Operations
Earned Premiums		$	17.0		$	17.2		$	17.2		$	17.4		$	17.6		$	17.8		$	17.6		$	51.4		$	53.0
Net Investment Income		0.4			0.5			0.3			0.6			0.6			0.5			0.5			1.2			1.6
Total Revenues		17.4			17.7			17.5			18.0			18.2			18.3			18.1			52.6			54.6
Incurred Losses and LAE related to:
Current Year:
Non-catastrophe Losses and LAE		4.5			4.7			5.1			5.0			5.9			4.5			5.1			14.3			15.5
Catastrophe Losses and LAE		0.5			1.8			0.3			2.3			0.4			1.1			0.2			2.6			1.7
Prior Years:
Non-catastrophe Losses and LAE		0.1			0.2			0.6			(0.3		)	0.6			0.1			0.9			0.9			1.6
Catastrophe Losses and LAE		0.1			0.3			0.3			0.1			(0.1		)	—			0.1			0.7			—
Total Incurred Losses and LAE		5.2			7.0			6.3			7.1			6.8			5.7			6.3			18.5			18.8
Insurance Expenses		7.6			8.0			7.3			7.8			7.9			8.5			7.0			22.9			23.4
Operating Profit		4.6			2.7			3.9			3.1			3.5			4.1			4.8			11.2			12.4
Income Tax Expense		(0.9		)	(0.6		)	(0.8		)	(0.4		)	(0.9		)	(0.8		)	(1.0		)	(2.3		)	(2.7		)
Total Product Line Net Operating Income		$	3.7		$	2.1		$	3.1		$	2.7		$	2.6		$	3.3		$	3.8		$	8.9		$	9.7
Ratios Based On Earned Premiums
Current Year Non-catastrophe Losses and LAE Ratio		26.5		%	27.3		%	29.7		%	28.7		%	33.5		%	25.2		%	29.0		%	27.7		%	29.3		%
Current Year Catastrophe Losses and LAE Ratio		2.9			10.5			1.7			13.2			2.3			6.2			1.1			5.1			3.2
Prior Years Non-catastrophe Losses and LAE Ratio		0.6			1.2			3.5			(1.7		)	3.4			0.6			5.1			1.8			3.0
Prior Years Catastrophe Losses and LAE Ratio		0.6			1.7			1.7			0.6			(0.6		)	—			0.6			1.4			—
Total Incurred Loss and LAE Ratio		30.6			40.7			36.6			40.8			38.6			32.0			35.8			36.0			35.5
Insurance Expense Ratio		44.7			46.5			42.4			44.8			44.9			47.8			39.8			44.6			44.2
Combined Ratio		75.3		%	87.2		%	79.0		%	85.6		%	83.5		%	79.8		%	75.6		%	80.6		%	79.7		%
Underlying Combined Ratio1
Current Year Non-catastrophe Losses and LAE Ratio		26.5		%	27.3		%	29.7		%	28.7		%	33.5		%	25.2		%	29.0		%	27.7		%	29.3		%
Insurance Expense Ratio		44.7			46.5			42.4			44.8			44.9			47.8			39.8			44.6			44.2
Underlying Combined Ratio		71.2		%	73.8		%	72.1		%	73.5		%	78.4		%	73.0		%	68.8		%	72.3		%	73.5		%
Non-GAAP Measure Reconciliation
Combined Ratio		75.3		%	87.2		%	79.0		%	85.6		%	83.5		%	79.8		%	75.6		%	80.6		%	79.7		%
Less:
Current Year Catastrophe Losses and LAE Ratio		2.9			10.5			1.7			13.2			2.3			6.2			1.1			5.1			3.2
Prior Years Non-catastrophe Losses and LAE Ratio		0.6			1.2			3.5			(1.7		)	3.4			0.6			5.1			1.8			3.0
Prior Years Catastrophe Losses and LAE Ratio		0.6			1.7			1.7			0.6			(0.6		)	—			0.6			1.4			—
Underlying Combined Ratio		71.2		%	73.8		%	72.1		%	73.5		%	78.4		%	73.0		%	68.8		%	72.3		%	73.5		%
1 Underlying Combined Ratio is a non-GAAP measure, which is computed as the difference between three operating ratios: the combined ratio, the effect of catastrophes (excluding development of prior-year catastrophes) on the combined ratio and the effect of prior-year reserve development at the reporting date (including development on prior-year catastrophes) on the combined ratio.

Page 25

Kemper Corporation Insurance Expenses and Interest and Other Expenses (Dollars in Millions)
	Three Months Ended																						Nine Months Ended
		Sep 30, 2019			Jun 30, 2019			Mar 31, 2019			Dec 31, 2018			Sep 30, 2018			Jun 30, 2018			Mar 31, 2018			Sep 30, 2019			Sep 30, 2018
Insurance Expenses:
Commissions		$	178.3		$	183.8		$	174.0		$	158.7		$	166.6		$	123.1		$	110.3		$	536.1		$	400.0
General Expenses		68.4			75.4			62.4			74.4			66.7			42.9			45.7			206.2			155.3
Taxes, Licenses and Fees		23.2			24.5			25.2			19.8			22.8			16.1			14.5			72.9			53.4
Total Costs Incurred		269.9			283.7			261.6			252.9			256.1			182.1			170.5			815.2			608.7
Policy Acquisition Costs:
Deferred		(119.9		)	(120.9		)	(128.8		)	(122.8		)	(156.1		)	(106.1		)	(96.5		)	(369.6		)	(358.7		)
Amortized		104.7			99.2			99.8			99.4			98.2			93.7			85.8			303.7			277.7
Net Policy Acquisition Costs Deferred		(15.2		)	(21.7		)	(29.0		)	(23.4		)	(57.9		)	(12.4		)	(10.7		)	(65.9		)	(81.0		)
Amortization of Valuation of Business Acquired ("VOBA")		1.3			1.5			2.2			43.7			97.8			1.5			0.3			5.0			99.6
Insurance Expenses		256.0			263.5			234.8			273.2			296.0			171.2			160.1			754.3			627.3
Interest and Other Expenses:
Interest Expense		9.2			11.8			11.5			14.1			13.4			8.0			7.9			32.5			29.3
Other Expenses:
Loss (Gain) on Cash Flow Hedge		—			—			—			—			(0.2		)	—			0.2			—			—
Acquisition Related Transaction, Integration and Other Costs		5.4			1.2			5.6			6.7			28.2			3.6			6.2			12.2			38.0
Other		23.3			25.0			24.3			21.8			20.3			14.1			14.7			72.6			49.1
Other Expenses		28.7			26.2			29.9			28.5			48.3			17.7			21.1			84.8			87.1
Interest and Other Expenses		37.9			38.0			41.4			42.6			61.7			25.7			29.0			117.3			116.4
Total Expenses		$	293.9		$	301.5		$	276.2		$	315.8		$	357.7		$	196.9		$	189.1		$	871.6		$	743.7

Page 26

Kemper Corporation Details of Investment Performance (Dollars in Millions)
	Three Months Ended																						Nine Months Ended
		Sep 30, 2019			Jun 30, 2019			Mar 31, 2019			Dec 31, 2018			Sep 30, 2018			Jun 30, 2018			Mar 31, 2018			Sep 30, 2019			Sep 30, 2018
Net Investment Income
Interest on Fixed Income Securities		$	73.5		$	75.6		$	76.4		$	71.5		$	70.6		$	64.4		$	62.4		$	225.5		$	197.4
Dividends on Equity Securities Excluding Alternative Investments		5.2			6.9			2.5			6.6			2.5			2.6			1.9			14.6			7.0
Alternative Investments:
Equity Method Limited Liability Investments		1.6			2.6			(3.6		)	2.9			(0.4		)	1.4			7.1			0.6			8.1
Limited Liability Investments Included in Equity Securities		5.2			5.1			2.6			3.6			13.7			5.2			3.9			12.9			22.8
Total Alternative Investments		6.8			7.7			(1.0		)	6.5			13.3			6.6			11.0			13.5			30.9
Short-term Investments		2.5			2.6			1.8			2.7			2.3			1.2			0.8			6.9			4.3
Real Estate		2.4			2.2			2.5			2.4			2.4			2.4			2.4			7.1			7.2
Loans to Policyholders		5.9			5.7			5.3			6.0			5.5			5.5			5.5			16.9			16.5
Other		0.6			0.3			—			0.3			0.2			0.4			—			0.9			0.6
Total Investment Income		96.9			101.0			87.5			96.0			96.8			83.1			84.0			285.4			263.9
Investment Expenses:
Real Estate		2.5			2.3			2.4			2.2			2.6			2.6			2.3			7.2			7.5
Other Investment Expenses		2.7			2.7			2.4			2.5			2.2			2.1			2.5			7.8			6.8
Total Investment Expenses		5.2			5.0			4.8			4.7			4.8			4.7			4.8			15.0			14.3
Net Investment Income		$	91.7		$	96.0		$	82.7		$	91.3		$	92.0		$	78.4		$	79.2		$	270.4		$	249.6
Net Realized Gains (Losses) on Sales of Investments
Fixed Maturities:
Gains on Sales		$	1.9		$	22.7		$	15.1		$	14.1		$	5.9		$	1.2		$	4.1		$	39.7		$	11.2
Losses on Sales		(0.3		)	(1.9		)	(2.6		)	(4.6		)	(2.5		)	(1.9		)	(2.1		)	(4.8		)	(6.5		)
Equity Securities:
Gains on Sales		0.2			0.7			3.6			6.9			0.2			4.6			0.6			4.5			5.4
Losses on Sales		(0.1		)	(0.2		)	—			—			—			—			—			(0.3		)	—
Other Investments:
Losses on Sales		—			—			—			—			—			(0.1		)	—			—			(0.1		)
Net Realized Gains on Sales of Investments		$	1.7		$	21.3		$	16.1		$	16.4		$	3.6		$	3.8		$	2.6		$	39.1		$	10.0
Net Impairment Losses Recognized in Earnings
Fixed Maturities		$	(1.7	)	$	(6.3	)	$	(3.6	)	$	(1.5	)	$	(0.2	)	$	—		$	(0.3	)	$	(11.6	)	$	(0.5	)
Equity Securities		(0.1		)	(0.4		)	—			(0.7		)	(1.6		)	—			(0.2		)	(0.5		)	(1.8		)
Net Impairment Losses Recognized in Earnings		$	(1.8	)	$	(6.7	)	$	(3.6	)	$	(2.2	)	$	(1.8	)	$	—		$	(0.5	)	$	(12.1	)	$	(2.3	)

Page 27

Kemper Corporation Details of Invested Assets (Dollars in Millions) (Unaudited)
	Sep 30, 2019				Dec 31, 2018				Dec 31, 2017
	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	$	838.9	9.3	%	$	865.7	10.7	%	$	556.1	8.2	%
States and Political Subdivisions	1,545.1		17.2		1,619.1		20.1		1,701.8		25.0
Foreign Governments	14.4		0.2		5.9		0.1		3.2		—
Corporate Securities:
Bonds and Notes	3,907.1		43.5		3,393.8		42.1		2,980.6		43.8
Redeemable Preferred Stocks	—		—		—		—		0.1		—
Collaterized Loan Obligations	536.5		6.0		524.0		6.5		139.8		2.1
Other Mortgage- and Asset-backed	41.6		0.5		15.7		0.2		1.1		—
Total Fixed Maturities Reported at Fair Value	6,883.6		76.7		6,424.2		79.6		5,382.7		79.1
Equity Securities Reported at Fair Value:
Preferred Stocks	58.2		0.6		54.2		0.7		78.8		1.2
Common Stocks	12.9		0.1		10.9		0.1		24.8		0.4
Other Equity Interests:
Exchange Traded Funds	659.3		7.3		427.3		5.3		219.5		3.2
Limited Liability Companies and Limited Partnerships	198.3		2.2		192.0		2.4		202.9		3.0
Total Equity Securities Reported at Fair Value	928.7		10.3		684.4		8.5		526.0		7.7
Equity Securities Reported at Modified Cost:
Preferred Stocks	9.0		0.1		9.2		0.1		—		—
Common Stocks	10.9		0.1		8.8		0.1		—		—
Limited Liability Companies and Limited Partnerships	21.3		0.2		23.5		0.3		—		—
Total Equity Securities Reported at Modified Cost	41.2		0.4		41.5		0.5		—		—
Convertible Securities at Fair Value	35.6		0.4		31.5		0.4		—		—
Equity Method Limited Liability Investments	213.4		2.4		187.0		2.3		161.0		2.4
Fair Value Option Investments	—		—		—		—		77.5		1.1
Short-term Investments at Cost which Approximates Fair Value	424.2		4.7		286.1		3.5		235.5		3.5
Other Investments:
Loans to Policyholders at Unpaid Principal	302.7		3.4		300.6		3.7		298.6		4.4
Real Estate at Depreciated Cost	112.3		1.3		114.2		1.4		116.8		1.7
Mortgage Loans	32.4		0.4		—		—		—		—
Trading Securities at Fair Value	—		—		—		—		6.7		0.1
Other	—		—		—		—		0.1		—
Total Other Investments	447.4		5.1		414.8		5.1		422.2		6.2
Total Investments	$	8,974.1	100.0	%	$	8,069.5	100.0	%	$	6,804.9	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, 2019				Dec 31, 2018				Dec 31, 2017
	Carrying Value		Percent of Total1		Carrying Value		Percent of Total1		Carrying Value		Percent of Total1
S&P Equivalent Rating for Fixed Maturities
AAA, AA, A	$	4,328.7	62.9	%	$	4,156.6	64.7	%	$	3,481.8	64.7	%
BBB	2,039.9		29.6		1,752.6		27.3		1,335.2		24.8
BB, B	360.6		5.3		333.7		5.2		357.2		6.6
CCC or Lower	154.4		2.2		181.3		2.8		208.5		3.9
Total Investments in Fixed Maturities	$	6,883.6	100.0	%	$	6,424.2	100.0	%	$	5,382.7	100.0	%
Duration (in Years)
Total Investments in Fixed Maturities	7.3				6.2				6.2
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, 2019				Dec 31, 2018				Dec 31, 2017
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	$	1,373.1	15.3	%	$	1,270.0	15.7	%	$	1,168.8	17.2	%
Finance, Insurance and Real Estate	1,404.1		15.6		1,269.3		15.7		780.2		11.5
Services	615.7		6.9		516.4		6.4		453.3		6.7
Transportation, Communication and Utilities	635.7		7.1		449.0		5.6		353.7		5.2
Retail Trade	189.1		2.1		164.8		2.0		102.6		1.5
Mining	163.6		1.8		158.6		2.0		163.5		2.4
Wholesale Trade	74.4		0.8		78.4		1.0		81.3		1.2
Agriculture, Forestry and Fishing	12.4		0.1		13.7		0.2		14.5		0.2
Other	17.1		0.2		13.3		0.2		3.7		0.1
Total Fair Value of Non-governmental Fixed Maturities	$	4,485.2	49.9	%	$	3,933.5	48.8	%	$	3,121.6	46.0	%

	Sep 30, 2019
Ten Largest Investment Exposures 1	Fair Value		Percent of Total Investments
Fixed Maturities:
States including their Political Subdivisions:
Texas	$	120.6	1.3	%
Georgia	94.4		1.1
Colorado	87.3		1.0
Louisiana	71.2		0.8
Michigan	70.1		0.8
California	68.9		0.8
Equity Securities at Fair Value—Other Equity Interests:
Vanguard Long-Term Corp Bond ETF	105.8		1.2
iShares® Core MSCI Total International Stock ETF	75.8		0.8
iShares Long-Term Corporate Bond ETF	69.6		0.8
Vanguard Total Stock Market ETF	65.5		0.7
Total	$	829.2	9.3	%

¹  Excluding Investments in U.S. Government and Government Agencies and Authorities at September 30, 2019.

Page 30

Kemper Corporation Municipal Bond Securities (Dollars in Millions) (Unaudited)
	Sep 30, 2019
	State General Obligation		Political Subdivision General Obligation		Revenue		Total Fair Value		Percent of Total Muni Bond1		Percent of Total Investments1
Texas	$	33.3	$	14.1	$	73.1	$	120.5	7.8	%	1.3	%
Georgia	58.8		5.3		30.3		94.4		6.1		1.1
Colorado	—		14.4		72.9		87.3		5.7		1.0
Louisiana	45.8		7.3		18.1		71.2		4.6		0.8
Michigan	39.8		—		30.3		70.1		4.5		0.8
California	13.8		5.1		50.0		68.9		4.5		0.8
New York	6.7		2.7		45.9		55.3		3.6		0.6
Washington	15.4		0.3		39.6		55.3		3.6		0.6
Ohio	6.5		—		48.3		54.8		3.5		0.6
Virginia	8.0		19.9		15.0		42.9		2.8		0.5
Pennsylvania	11.2		2.6		28.1		41.9		2.7		0.5
Utah	5.9		—		34.1		40.0		2.6		0.4
Minnesota	—		—		37.8		37.8		2.4		0.4
Indiana	—		1.6		36.0		37.6		2.4		0.4
Florida	12.8		—		24.2		37.0		2.4		0.4
Massachusetts	2.7		1.5		30.8		35.0		2.3		0.4
New Mexico	—		—		34.8		34.8		2.3		0.4
Oregon	28.8		—		3.5		32.3		2.1		0.4
District Of Columbia	—		4.9		25.9		30.8		2.0		0.3
South Carolina	22.9		1.9		5.7		30.5		2.0		0.3
Maryland	2.1		20.5		6.8		29.4		1.9		0.3
Wisconsin	15.4		7.3		6.7		29.4		1.9		0.3
Nevada	20.1		8.2		—		28.3		1.8		0.3
Connecticut	26.3		—		—		26.3		1.7		0.3
Illinois	—		—		24.4		24.4		1.6		0.3
Tennessee	3.6		8.2		10.8		22.6		1.5		0.3
Missouri	—		—		22.6		22.6		1.5		0.3
Mississippi	19.6		—		2.5		22.1		1.4		0.2
Delaware	10.4		—		10.8		21.2		1.4		0.2
Hawaii	21.1		—		—		21.1		1.4		0.2
Nebraska	—		8.0		12.1		20.1		1.3		0.2
New Jersey	—		—		19.7		19.7		1.3		0.2
Arkansas	19.5		—		—		19.5		1.3		0.2
Kentucky	—		—		17.8		17.8		1.2		0.2
Rhode Island	4.6		—		11.3		15.9		1.0		0.2
Alaska	2.0		3.0		10.2		15.2		1.0		0.2
Iowa	—		—		14.2		14.2		0.9		0.2
Alabama	—		—		14.1		14.1		0.9		0.2
Arizona	—		0.8		12.8		13.6		0.9		0.2
All Other States	5.6		0.3		63.3		69.2		4.5		0.8
Total	$	462.7	$	137.9	$	944.5	$	1,545.1	100.0	%	17.2	%
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, 2019		Sep 30, 2019		Dec 31, 2018
Reported as Equity Method Limited Liability Investments at Cost Plus Cumulative Undistributed Earnings:
Mezzanine Debt	$	57.9	$	129.3	$	99.6
Senior Debt	21.2		16.6		15.4
Distressed Debt	—		24.2		34.5
Secondary Transactions	15.2		12.2		21.2
Leveraged Buyout	—		0.1		4.2
Growth Equity	—		5.3		5.4
Real Estate	—		19.9		—
Other	—		5.8		6.7
Total Equity Method Limited Liability Investments	94.3		213.4		187.0
Reported as Other Equity Interests at Fair Value:
Mezzanine Debt	93.1		122.9		111.7
Senior Debt	18.3		39.2		34.3
Distressed Debt	20.2		15.0		14.5
Secondary Transactions	6.7		5.3		6.7
Hedge Funds	—		3.1		14.7
Leveraged Buyout	2.3		4.9		4.2
Other	4.7		7.9		5.9
Total Reported as Other Equity Interests at Fair Value	145.3		198.3		192.0
Reported as Other Equity Interests at Modified Cost:
Mezzanine Debt	—		1.7		1.5
Other	0.1		19.6		22.1
Total Reported as Other Equity Interests at Modified Cost	0.1		21.3		23.6
Total Investments in Limited Liability Companies and Limited Partnerships	$	239.7	$	433.0	$	402.6

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

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

Adjusted Consolidated Net Operating Income (Loss) is an after-tax, non-GAAP financial measure and is computed by excluding from 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 and Convertible 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 and Convertible 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, 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. 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 Income from Continuing Operations to Adjusted Consolidated Net Operating Income is presented below:

	Three Months Ended																					Nine Months Ended
Dollars in Millions (Unaudited)	Sep 30, 2019			Jun 30, 2019			Mar 31, 2019			Dec 31, 2018			Sep 30, 2018			Jun 30, 2018			Mar 31, 2018			Sep 30, 2019			Sep 30, 2018
Income from Continuing Operations	$	129.0		$	122.1		$	155.3		$	5.0		$	92.3		$	37.5		$	53.6		$	406.4		$	183.4
Less Net Income (Loss) From:
Change in Fair Value of Equity and Convertible Securities	7.8			20.1			50.9			(60.4		)	8.7			0.3			0.6			78.8			9.6
Net Realized Gains on Sales of Investments	1.4			16.8			12.7			13.0			2.8			3.0			2.1			30.9			7.9
Net Impairment Losses Recognized in Earnings	(1.5		)	(5.3		)	(2.8		)	(1.8		)	(1.4		)	—			(0.4		)	(9.6		)	(1.8		)
Acquisition Related Transaction and Integration Costs	(4.1		)	(1.0		)	(4.4		)	(5.7		)	(22.3		)	(2.3		)	(6.2		)	(9.5		)	(30.8		)
Loss from Early Extinguishment of Debt	(4.6		)	—			—			—			—			—			—			(4.6		)	—
Adjusted Consolidated Net Operating Income	$	130.0		$	91.5		$	98.9		$	59.9		$	104.5		$	36.5		$	57.5		$	320.4		$	198.5

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

	Three Months Ended																					Nine Months Ended
(Unaudited)	Sep 30, 2019			Jun 30, 2019			Mar 31, 2019			Dec 31, 2018			Sep 30, 2018			Jun 30, 2018			Mar 31, 2018			Sep 30, 2019			Sep 30, 2018
Income from Continuing Operations Per Unrestricted Share	$	1.93		$	1.87		$	2.38		$	0.08		$	1.42		$	0.73		$	1.03		$	6.17		$	3.26
Less Net Income (Loss) Per Unrestricted Share From:
Change in Fair Value of Equity and Convertible Securities	0.11			0.31			0.78			(0.93		)	0.13			0.01			0.01			1.20			0.17
Net Realized Gains on Sales of Investments	0.02			0.26			0.19			0.20			0.04			0.06			0.04			0.47			0.14
Net Impairment Losses Recognized in Earnings	(0.02		)	(0.08		)	(0.04		)	(0.02		)	(0.02		)	—			(0.01		)	(0.15		)	(0.03		)
Acquisition Related Transaction and Integration Costs	(0.06		)	(0.01		)	(0.07		)	(0.09		)	(0.34		)	(0.04		)	(0.12		)	(0.14		)	(0.55		)
Loss from Early Extinguishment of Debt	(0.07		)	—			—			—			—			—			—			(0.07		)	—
Adjusted Consolidated Net Operating Income Per Unrestricted Share	$	1.95		$	1.39		$	1.52		$	0.92		$	1.61		$	0.70		$	1.11		$	4.86		$	3.53

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 periods subsequent to acquisition, the three months endedSeptember 30, 2019, June 30, 2019, March 31, 2019, December 31, 2018 and September 30, 2018, the 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 periods prior to the acquisition, the three months endedJune 30, 2018 and March 31, 2018, as adjusted amounts are computed by adding the historical results of Infinity 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 Financial Highlights

(Dollars in Millions)

(Unaudited)

	Three Months Ended																			Nine Months Ended
		Sep 30, 2019			Jun 30, 2019			Mar 31, 2019		Dec 31, 2018			Sep 30, 2018			Jun 30, 2018		Mar 31, 2018		Sep 30, 2019			Sep 30, 2018
Earned Premiums
Kemper - GAAP As Reported		$	1,135.2		$	1,116.6		$	1,074.8	$	1,063.6		$	1,052.9		$	658.1	$	609.8	$	3,326.6		$	2,320.8
Infinity - Prior to Acquisition		—			—			—		—			—			374.3		354.0		—			728.3
As Adjusted1		$	1,135.2		$	1,116.6		$	1,074.8	$	1,063.6		$	1,052.9		$	1,032.4	$	963.8	$	3,326.6		$	3,049.1
Adjusted Consolidated Net Operating Income (Loss)
Kemper		$	130.0		$	91.5		$	98.9	$	59.9		$	104.5		$	36.5	$	57.5	$	320.4		$	198.5
Infinity - Prior to Acquisition		—			—			—		—			—			29.5		23.8		—			53.3
Less: Impact of Purchase Accounting		(6.6		)	(4.2		)	2.1		(20.5		)	(39.5		)	—		—		(8.7		)	(39.5		)
As Adjusted1		$	136.6		$	95.7		$	96.8	$	80.4		$	144.0		$	66.0	$	81.3	$	329.1		$	291.3
1 As Adjusted is a non-GAAP financial 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.

Page 36

` Kemper Corporation

Selected Financial Information

As Adjusted for Acquisition - Specialty Property & Casualty Insurance Segment

(Dollars in Millions)

(Unaudited)

	Three Months Ended																					Nine Months Ended
	Sep 30, 2019			Jun 30, 2019			Mar 31, 2019			Dec 31, 2018			Sep 30, 2018			Jun 30, 2018			Mar 31, 2018			Sep 30, 2019			Sep 30, 2018
Earned Premiums
Kemper Specialty P&C - GAAP As Reported	$	783.4		$	766.0		$	729.3		$	717.8		$	711.2		$	320.0		$	278.4		$	2,278.7		$	1,309.6
Infinity - Prior to Acquisition	—			—			—			—			—			374.3			354.0			—			728.3
As Adjusted1	$	783.4		$	766.0		$	729.3		$	717.8		$	711.2		$	694.3		$	632.4		$	2,278.7		$	2,037.9
Current Year Non-CAT Losses and LAE
Kemper Specialty P&C - GAAP As Reported	$	579.4		$	579.2		$	544.3		$	530.3		$	527.6		$	247.2		$	212.3		$	1,702.9		$	987.1
Infinity - Prior to Acquisition	—			—			—			—			—			277.4			273.3			—			550.7
Less: Impact of Purchase Accounting
Amortization of Fair Value Adjustment to Infinity's Unpaid Loss and LAE	0.8			1.2			1.5			1.9			2.5			—			—			3.5			2.5
As Adjusted1	$	578.6		$	578.0		$	542.8		$	528.4		$	525.1		$	524.6		$	485.6		$	1,699.4		$	1,535.3
Insurance Expenses
Kemper Specialty P&C - GAAP As Reported	$	139.2		$	140.9		$	124.8		$	148.0		$	176.8		$	49.0		$	47.9		$	404.9		$	273.7
Infinity - Prior to Acquisition	—			—			—			—			—			68.1			65.4			—			133.5
Less: Impact of Purchase Accounting
Amortization of VOBA	0.6			0.8			1.5			42.0			97.3			—			—			2.9			97.3
Amortization of Estimated Legacy Infinity Deferred Policy Acquisition Costs ("DPAC")	—			(3.1		)	(12.1		)	(24.2		)	(56.2		)	—			—			(15.2		)	(56.2		)
Amortization of VOBA, Net of Legacy Infinity DPAC	0.6			(2.3		)	(10.6		)	17.8			41.1			—			—			(12.3		)	41.1
Amortization of Finite Life Intangible Assets Acquired	3.3			3.3			3.3			3.3			3.3			—			—			9.9			3.3
Other	3.4			3.4			3.4			3.4			3.4			—			—			10.2			3.4
Total Purchase Accounting Adjustments	7.3			4.4			(3.9		)	24.5			47.8			—			—			7.8			47.8
As Adjusted1	$	131.9		$	136.5		$	128.7		$	123.5		$	129.0		$	117.1		$	113.3		$	397.1		$	359.4
Underlying Combined Ratio1
Kemper Specialty P&C Segment	91.8		%	94.0		%	91.7		%	94.5		%	99.1		%	92.5		%	93.4		%	92.6		%	96.2		%
As Adjusted1	90.7		%	93.3		%	92.1		%	90.8		%	92.0		%	92.4		%	94.7		%	92.0		%	93.0		%
1 As Adjusted is a non-GAAP financial 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 33.

Page 37

Kemper Corporation

Selected Financial Information

As Adjusted for Acquisition - Specialty Personal Automobile Insurance

(Dollars in Millions)

(Unaudited)

	Three Months Ended																						Nine Months Ended
		Sep 30, 2019			Jun 30, 2019			Mar 31, 2019			Dec 31, 2018			Sep 30, 2018			Jun 30, 2018			Mar 31, 2018			Sep 30, 2019			Sep 30, 2018
Earned Premiums
Kemper Specialty Personal Automobile Insurance - GAAP As Reported		$	719.2		$	703.7		$	669.6		$	660.5		$	655.3		$	307.5		$	266.2		$	2,092.5		$	1,229.0
Infinity - Prior to Acquisition		—			—			—			—			—			332.6			314.2			—			646.8
As Adjusted1		$	719.2		$	703.7		$	669.6		$	660.5		$	655.3		$	640.1		$	580.4		$	2,092.5		$	1,875.8
Current Year Non-CAT Losses and LAE
Kemper Specialty Personal Automobile Insurance		$	538.2		$	537.0		$	498.8		$	492.0		485.6			$	237.8		$	202.8		$	1,574.0		$	926.2
Infinity - Prior to Acquisition		—			—			—			—			—			244.5			242.3			—			486.8
Less: Impact of Purchase Accounting
Amortization of Fair Value Adjustment to Infinity's Unpaid Loss and LAE		0.6			0.9			1.3			1.5			2.0			—			—			2.8			2.0
As Adjusted1		$	537.6		$	536.1		$	497.5		$	490.5		$	483.6		$	482.3		$	445.1		$	1,571.2		$	1,411.0
Insurance Expenses
Kemper Specialty Personal Automobile Insurance - GAAP As Reported		$	128.4		$	128.9		$	114.7		$	132.5		$	160.8		$	46.7		$	45.2		$	372.0		$	252.7
Infinity - Prior to Acquisition		—			—			—			—			—			60.8			58.5			—			119.3
Less: Impact of Purchase Accounting
Amortization of VOBA		0.4			0.7			1.3			37.7			87.8			—			—			2.4			87.8
Amortization of Estimated Legacy Infinity Deferred Policy Acquisition Costs ("DPAC")		—			(2.8		)	(9.8		)	(21.9		)	(48.7		)	—			—			(12.6		)	(48.7		)
Amortization of VOBA, Net of Legacy Infinity DPAC		0.4			(2.1		)	(8.5		)	15.8			39.1			—			—			(10.2		)	39.1
Amortization of Finite Life Intangible Assets Acquired		3.0			3.0			3.0			3.0			3.0			—			—			9.0			3.0
Other		3.0			3.0			3.0			3.0			3.0			—			—			9.0			3.0
Total Purchase Accounting Adjustments		6.4			3.9			(2.5		)	21.8			45.1			—			—			7.8			45.1
As Adjusted1		$	122.0		$	125.0		$	117.2		$	110.7		$	115.7		$	107.5		$	103.7		$	364.2		$	326.9
Underlying Combined Ratio1
Kemper Specialty Personal Automobile Insurance		92.8		%	94.6		%	91.6		%	94.6		%	98.6		%	92.5		%	93.2		%	93.1		%	95.9		%
As Adjusted1		91.7		%	93.9		%	91.8		%	91.0		%	91.5		%	92.1		%	94.6		%	92.5		%	92.6		%
1 As Adjusted is a non-GAAP financial 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 33.

Page 38

EX-99.3

Third Quarter 2019 Earnings November 4, 2019 Earnings Call Presentation – 3Q 2019

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 2019 2

Create Long-Term Shareholder Value Leverage competitive advantages to grow returns and BVPS1 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 management 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 ROE2 over time ¹ Book value per share 2 Return on equity Earnings Call Presentation – 3Q 2019 3

Third Quarter 2019 Highlights Specialty P&C growth and profitability continues to drive strong results Continued double-digit return on equity and book value per share (BVPS) accretion • Net Income of $129 million and adjusted consolidated net operating income of $130 million • 23% increase in BVPS and 13% increase in BVPS ex. net unrealized gains on fixed maturities1 Shareholder • 37% growth in TBVPS and 21% increase in TBVPS ex. net unrealized gains on fixed maturities1 Value Creation • 12.1% ROAE2, up 240 bps; 13.1% ROAE2, ex. net unrealized gains on fixed maturities1, up 250 bps • Earnings per share increased 36% from $1.40 to $1.91, on a diluted basis • Adjusted consolidated net operating EPS1 increased 21% from $1.59 to $1.93 Strong Specialty P&C performance with return to a more normal L&H result; continued focus on improving Preferred P&C 3rd Quarter • Specialty P&C Insurance underlying combined ratio1 remained strong at 91.8%, as reported or Operating 90.7%, as adjusted 1, earned premiums increased by $72 million, or 10%, benefitting from accelerating diversified geographic growth Performance • Life & Health results returned to a more normalized level; continues to provide stable cash flow and diversification benefits Strong capital position providing significant financial flexibility • Exceptional balance sheet strength Financial • Debt-to-capital ratio of 16.7% with approximately $830 million of available committed contingent Strength liquidity • Contributed $55 million to the pension, bringing the liability within a fully funded range ¹ Non-GAAP financial measure; please see reconciliation in appendix 2 Return on average shareholders’ equity (5-point average) Earnings Call Presentation – 3Q 2019 4

Third Quarter Highlights Strategy continuing to yield strong results As Adjusted As Reported for Acquisition (1) Quarter Ended Quarter Ended Change Change Sept 30, from 3Q’18 Sept 30, from 3Q’18 (Dollars in millions, except per share amounts) 2019 (%) 2019 (%) Net Income $129 39.9% $136 3.0% Adjusted Consolidated Net Operating Income (1) $130 24.4% $137 (5.1%) Per Share Net Income - Diluted $1.91 36.4% $2.01 0.0% Adj. Consolidated Net Operating Income - Diluted (1) $1.93 21.4% $2.03 (7.8%) 24% increase in adjusted consolidated net operating income 1 Non-GAAP financial measure; see reconciliation in appendix Earnings Call Presentation – 3Q 2019 5

Third Quarter Highlights 22% increase in Adjusted Consolidated Operating Income Excluding Discrete Items(1,2) As Adjusted for Acquisition (1,2) Quarter Ended Sept 30, Sept 30, Growth (Dollars in millions, except per share amounts) 2019 2018 (%) Adjusted Consolidated Net Operating Income (1) $ 137 $ 144 (5%) Discrete Items: Sale of Wildfire Subrogation Rights (12) - Refinement of CEI Estimate (12) - Sale of Classic Collectors Auto Business (3) - Partial Satisfaction of Judgement - (28) Tax Reform - (26) Adj. Consolidated Net Operating Income Excluding Discrete Items $ 110 $ 90 22% Operational focus to drive long-term shareholder value 1 Non-GAAP financial measure; see reconciliation in appendix Earnings Call Presentation – 3Q 2019 2 Excludes adjustments in 2018 and 2019 6

Operating Performance Continued to produce strong operating income Three Months Ended, As Reported Sep. 30, Jun. 30, Mar. 31, Dec. 31, Sep. 30, Variance Dollars per Unrestricted Share - Diluted 2019 2019 2019 2018 2018 QoQ Income from Continuing Operations $ 1.91 $ 1.84 $ 2.35 $ 0.08 $ 1.40 0.51 (Income) Loss from Change in FV of Equity & Convertible Securities (0.11) (0.30) (0.77) 0.92 (0.13) 0.02 Investment Related (Gains)/Losses (0.02) (0.25) (0.19) (0.20) (0.04) 0.02 Net Impairment Losses 0.02 0.08 0.04 0.02 0.02 - Acquisition Related Transaction, Integration & Other Costs 0.06 0.01 0.07 0.09 0.34 (0.28) Loss from Early Extinguishment of Debt 0.07 - - - - 0.07 Adj. Consolidated Net Operating Income1 1.93 1.38 1.50 0.91 1.59 0.34 Sources of Volatility: Income (Loss) After-Tax From: Catastrophes (0.17) (0.34) (0.21) (0.30) (0.24) 0.07 - Prior-year Reserve Development 0.24 0.16 0.22 0.05 0.04 0.20 Alternative Investment Income 0.08 0.09 (0.01) 0.08 0.16 (0.08) - Tax Reform - - - - 0.40 (0.40) Partial Satisfaction of Judgment - 0.24 - - 0.43 (0.43) Sale of Classic Collectors Auto Business 0.04 - - - - 0.04 Refinement of CEI Estimate 0.18 - - - - 0.18 Impact of Purchase Accounting (0.10) (0.06) 0.03 (0.31) (0.61) 0.51 Total from Sources of Volatility $ 0.27 $ 0.09 $ 0.03 $ (0.48) $ 0.18 $ 0.09 21% increase in adjusted consolidated net operating income per diluted share1 ¹ Non-GAAP financial measure; see reconciliation in appendix Earnings Call Presentation – 3Q 2019 7

Specialty Property & Casualty Insurance Segment1 Strong, profitable Specialty P&C growth demonstrates value of operating model Key Highlights • 6.7% growth in policies in-force, or 6.9% excluding Classic Collectors, compared to 3Q’18; • Growth one point higher than 2Q’19 • 75% of total growth outside of California • YTD As Adjusted Underlying Combined ratio of 92% • Remain focused on building long-term shareholder value by delivering value to customers, strengthening core capabilities, and generating disciplined profitable growth Underlying Combined Ratio2 Key Metrics Change ($ in millions) 3Q’19 to 3Q’18 (%) Earned Premiums $783 10.2% U/L Loss & LAE Ratio 74.0% (20 bps) 92.0 90.8 92.1 93.3 90.7 U/L Expense Ratio 16.8% (130 bps) Policies In-Force (000) 1,803 6.7% 3Q18 4Q18 1Q19 2Q19 3Q19 Policies In-Force ex. Classic Collectors (000) 1,764 6.9% Strength of franchise creating value for policyholders and shareholders ¹ As adjusted2, including legacy Infinity in all prior periods 2 Non-GAAP financial measure; see reconciliation in appendix; excludes impact of purchase accounting Earnings Call Presentation – 3Q 2019 8

Preferred Property & Casualty Insurance Segment Efforts to restore Preferred P&C franchise to target profitability are ongoing Key Highlights • Underlying combined ratio increased 40 basis points to 94.9% - Auto underlying loss ratio remains elevated as focus to reposition business continues - Home & Other underlying loss ratio improved due to a lower level of non-catastrophe large losses • Sale of subrogation rights associated with 2017 and 2018 California wildfires benefitted net operating income (no impact to underlying) Key Metrics Change ($ in millions) 3Q’19 to 3Q’18 Underlying Combined Ratio¹ 104.6 Home & Other 99.7 100.4 100.2 (%) 97.7 Earned Premiums $71 (1.8%) 89.5 89.6 85.7 79.0 83.0 Policies In-Force (000) 220 (5.2%) Auto Earned Premiums $120 7.4% 3Q18 4Q18 1Q19 2Q19 3Q19 Policies In-Force (000) 252 0.4% Auto Home & Other Business repositioning continues ¹ Non-GAAP financial measure; please see reconciliation in appendix Earnings Call Presentation – 3Q 2019 9

Life & Health Insurance Segment Life & Health Segment demonstrated continued modest premium growth Key Highlights • Earned premiums grew 2.0% driven by continued focus on enhancements to distribution capabilities and process improvements • Benefits and incurred loss returned to a more typical level • Insurance expenses reflect increased life growth and investments to enhance the capabilities of the business Revenues1 Key Metrics Change ($ in millions) 3Q’19 to 3Q’18 $209 $209 $212 $215 $211 (MM) L&H $51 $52 $52 $53 $50 Net Operating Income $33 23.2% Life $158 $157 $160 $162 $161 Face Value of In-Force $19,757 0.8% Policies In-Force (000) 3,480 (2.6%) 3Q18 4Q18 1Q19 2Q19 Q319 Earned Premiums Net Investment Income Provides diversified cash flow generation ¹ Excludes other income Earnings Call Presentation – 3Q 2019 10

High Quality & Diversified Portfolio with Consistent Returns Stable Net Investment Income Overview • Core portfolio investment income in line $92 $91 $83 $96 $92 with the previous year, which did not (MM) include the impact of investment in $7 $8 $7 $13 Corporate owned life insurance (COLI) • COLI income, recognized in the other $79 $85 $84 $88 $85 income line, increased to $3 million from $1 million in 3Q’18, reflecting increased investment allocation 3Q18 4Q18 1Q19 2Q19 3Q19 Core Portfolio Alternative Investment Portfolio Diversified & Highly-Rated Portfolio Pre-Tax Equiv. Annualized Book Yield Portfolio Composition Fixed Maturity Ratings Other ≤ CCC Short-term B / BB 1 Alternatives¹ 5% Corporates 5% 5.2% Equity¹ 5% 4.6% 4.2% 4.7% 4.4% 2% 6% 5% 30% U.S. 9% 53% BBB 3Q18 4Q18 1Q19 2Q19 3Q19 Gov’t 63% 17% • Lower yield primarily due to mix shift from A or Higher States/ addition of Infinity portfolio Munis $9.0 Billion $6.9 Billion ¹ Equity Securities excludes $220 million of Other Equity Interests of LP/LLC’s that have been reclassified into Alternative Investments and excludes $253 million Bond ETF that has been reclassified into Corporates Earnings Call Presentation – 3Q 2019 11

Strong Capital Position with Ample Liquidity Balance sheet strengthened through execution of pension risk mitigation action Strong Parent Company Liquidity Risk-Based Capital Ratios Life & Health P&C¹ $829 (%) (MM) $741 $684 $582 $641 $400 $385 $660 $385 $540 430 375 415 410 410 370 $341 $299 330 335 290 285 $197 $101 $169 2015 2016 2017 2018 3Q19 Borrowings available under credit agreement & from subs 2015 2016 2017 2018 2019E HoldCo Cash & Investments ¹Excludes Alliance United Cash Flow from Operating Activities Debt-to-Capital <30% 27.4% 27.6% 21.9% 23.0% (MM) 16.7% Debt $540 $367 $215 $241 $241 $134 2015 2016 2017 2018 3Q19 2014 2015 2016 2017 2018 9M19 Total Capitalization $2.7B $2.7B $2.7B $3.0B $4.7B Balance sheet well positioned to meet operating capital and liquidity needs Earnings Call Presentation – 3Q 2019 12

Appendix Earnings Call Presentation – 3Q 2019 13

A Leading Specialized Insurer Taking advantage of a diversified portfolio of niche businesses…. Founded in 1990 and headquartered in Chicago, with subsidiaries writing policies since 1911 >$12B ~6.4M ~30,000 >8,400 Assets Policies Agents/Brokers Employees Specialty P&C insurance providing Preferred personal lines insurance Life and health insurance personal and commercial providing preferred automobile, providing life, supplemental automobile insurance products homeowners and other personal benefits, and other property insurance products insurance products ….to create value for all our stakeholders Earnings Call Presentation – 3Q 2019 14

Surpassing Infinity Acquisition Financial Targets Earnings accretion, ROE accretion, and book value earnback targets met Premium Outperformance1,2 Yield Enhancement2 Cost Savings2 >$220mm of written premium above combined Net inv. income benefit from repositioning Realized ~80% of revised target to date; company expectations through 3Q 2019 Infinity’s portfolio is 70% higher than expected ~180bps of expense ratio improvement  $17   >$220 $70 - 75 >$200 $5 - 10 $55 ~$55 Earned Premium Written Premium 2Q20 Target Realized Initial Target Revised Target Realized Key Financial Targets Achieved Over a Year Ahead of Schedule Metric Announced Target Current Status Achieved Target Operating Earnings Year 1: accretive (ex. VOBA3) • High-teens operating earnings accretion Accretion Year 2: 10%+ accretive • Achieving ROE and ROATCE4 targets  Tangible Book 2yr earnback • Tangible book value accretion achieved three quarters Value Earnback (static method) after close  Debt / Total Cap. ~22% by 2Q 2019 • 3Q 2019 debt / total capitalization ratio of 16.7%  Achieved or ahead of schedule on all financial targets 1 Based on PIF growth in excess of combined company expectations (S-4) 2 $ in millions; 3 Value of business acquired; 4 Return on average tangible common equity Earnings Call Presentation – 3Q 2019 15

Capital Deployment Priorities Dedicated to being good stewards of capital 1. Investment in the business • Fund profitable organic growth at appropriate risk-adjusted returns • Strategic investments and acquisitions that enhance the business and meet or exceed our ROE targets over time 2. Return capital to shareholders • Repurchase shares opportunistically • Maintain competitive dividends Management and capital deployment priorities focused on maximizing shareholder value Earnings Call Presentation – 3Q 2019 16

2019 Reinsurance Program Aggregate stop-loss program intended to reduce volatility from high-frequency, low-severity events Catastrophe Reinsurance Program (Multi-Year) Aggregate Catastrophe Program • Same coverage as 2018 program • Coverage – $50 million in excess of $60 million – $500k deductible per storm – Perils: All perils, excluding named storms (e.g., hurricanes) and earthquakes – Covered Line: Preferred homeowners (excludes dwelling fire) 2019 Aggregate Catastrophe Reinsurance Program • Policy placed at 1/1/19 similar to prior two years – Added $25 million excess of $250 million layer for 1-year term • Total coverage: 95% of $225 million excess of $50 million Earnings Call Presentation – 3Q 2019 17

Non-GAAP Financial Measures 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, 2019 Sep. 30, 2018 Book Value Per Share $ 58.43 $ 47.33 Less: Net Unrealized Gains on Fixed Maturities Per Share (6.92) (1.67) Book Value Per Share Excluding Net Unrealized Gains on Fixed Maturities $ 51.51 $ 45.66 Less: Goodwill 16.71 16.86 Book Value Per Share Excluding Net Unrealized Gains on Fixed Maturities and Goodwill $ 34.80 $ 28.81 Earnings Call Presentation – 3Q 2019 18

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 and convertible 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 (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 and convertible 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. Earnings Call Presentation – 3Q 2019 19

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 and convertible securities, net realized gains on sales of investments, net impairment losses recognized in earnings related to investments, and acquisition related transaction, integration and other costs 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 3Q19 2Q19 1Q19 4Q18 3Q18 Income from Continuing Operations - Diluted $ 1.91 $ 1.84 $ 2.35 $ 0.08 $ 1.40 Net (Income) Loss From: Change in Fair Value of Equity & Convertible Securities (0.11) (0.30) (0.77) 0.92 (0.13) Net Realized Gains on Sales of Investments (0.02) (0.25) (0.19) (0.20) (0.04) Net Impairment Losses Recognized in Earnings 0.02 0.08 0.04 0.02 0.02 Acquisition Related Transaction, Integration and Other Costs 0.06 0.01 0.07 0.09 0.34 Loss from Early Extinguishment of Debt 0.07 - - - - Adj. Consolidated Net Operating Income - Diluted $ 1.93 $ 1.38 $ 1.50 $ 0.91 $ 1.59 Earnings Call Presentation – 3Q 2019 20

Non-GAAP Financial Measures 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. Kemper 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. Earnings Call Presentation – 3Q 2019 21

Non-GAAP Financial Measures Underlying Combined Ratio – Continued For the Three Months Ended 3Q19 2Q19 1Q19 4Q18 3Q18 Specialty P&C Insurance Combined Ratio as Reported 91.6% 93.5% 89.3% 94.6% 99.1% Current Year Catastrophe Loss and LAE Ratio (0.3%) (0.6%) (0.1%) (0.1%) (0.2%) Prior Years Non-Catastrophe Losses and LAE 0.5% 1.1% 2.5% 0.0% 0.2% Prior Years Catastrophe Losses and LAE Ratio 0.0% 0.0% 0.0% 0.0% 0.0% Underlying Combined Ratio 91.8% 94.0% 91.7% 94.5% 99.1% Preferred P&C Insurance Combined Ratio as Reported 92.4% 103.1% 102.7% 103.9% 103.3% Current Year Catastrophe Loss and LAE Ratio (6.2%) (12.0%) (8.9%) (11.3%) (9.9%) Prior Years Non-Catastrophe Losses and LAE 0.6% 2.3% 2.7% 1.6% 1.0% Prior Years Catastrophe Losses and LAE Ratio 8.1% 0.5% (0.5%) 0.4% 0.1% Underlying Combined Ratio 94.9% 93.9% 96.0% 94.6% 94.5% Preferred Auto Combined Ratio as Reported 101.5% 98.7% 100.8% 103.0% 97.5% Current Year Catastrophe Loss and LAE Ratio (1.8%) (1.4%) (2.2%) (0.3%) (2.1%) Prior Years Non-Catastrophe Losses and LAE 0.4% 3.1% 1.0% 1.9% 2.3% Prior Years Catastrophe Losses and LAE Ratio 0.1% 0.0% 0.1% 0.0% 0.0% Underlying Combined Ratio 100.2% 100.4% 99.7% 104.6% 97.7% Preferred Home & Other Combined Ratio as Reported 77.1% 110.5% 105.7% 105.3% 112.2% Current Year Catastrophe Loss and LAE Ratio (13.7%) (29.6%) (20.1%) (28.5%) (22.0%) Prior Years Non-Catastrophe Losses and LAE 0.8% 0.8% 5.6% 1.1% (1.0%) Prior Years Catastrophe Losses and LAE Ratio 21.5% 1.3% (1.6%) 1.1% 0.3% Underlying Combined Ratio 85.7% 83.0% 89.6% 79.0% 89.5% Earnings Call Presentation – 3Q 2019 22

Non-GAAP Financial Measures As Adjusted for Acquisition amounts are non-GAAP financial measures. For the three months ended September 30, 2019, 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, 2018, 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. Earnings Call Presentation – 3Q 2019 23

Non-GAAP Financial Measures As Adjusted for Acquisition – Continued Three Months Ended 30-Sep-19 30-Sep-18 Net Income Kemper - GAAP As Reported $ 129.0 $ 92.2 Less: Impact of Purchase Accounting (6.6) (39.5) As Adjusted 1 $ 135.6 $ 131.7 As Adjusted 1 - Per Diluted Share $ 2.01 $ 2.01 Adjusted Consolidated Net Operating Income (Loss)1 Kemper $ 130.0 $ 104.5 Less: Impact of Purchase Accounting (6.6) (39.5) As Adjusted 1 $ 136.6 $ 144.0 As Adjusted 1 - Per Diluted Share $ 2.03 $ 2.20 ¹ As Adjusted is a non-GAAP measure, which is comprised by excluding impact of purchase accounting in 2018 and including historical results of Kemper and Infinity in periods prior to acquisition date of July 2, 2018. Earnings Call Presentation – 3Q 2019 24

Non-GAAP Financial Measures As Adjusted for Acquisition – Continued Specialty P&C Insurance Segment Three Months Ended 30-Sep-19 30-Jun-19 31-Mar-19 31-Dec-18 30-Sep-18 Earned Premiums Kemper Specialty P&C - GAAP As Reported $ 783.4 $ 766.0 $ 729.3 $ 717.8 $ 711.2 Current Year Non-CAT Losses and LAE Kemper Specialty P&C - GAAP As Reported $ 579.4 $ 579.2 $ 544.3 $ 530.3 $ 527.6 Less: Impact of Purchase Accounting Amortization of Fair Value Adjustment to Infinity's Unpaid Loss and LAE 0.8 1.2 1.5 1.9 2.5 As Adjusted 1 $ 578.6 $ 578.0 $ 542.8 $ 528.4 $ 525.1 Insurance Expenses Kemper Specialty P&C - GAAP As Reported $ 139.2 $ 140.9 $ 124.8 $ 148.0 $ 176.8 Less: Impact of Purchase Accounting 7.3 4.4 (3.9) 24.5 47.8 As Adjusted 1 $ 131.9 $ 136.5 $ 128.7 $ 123.5 $ 129.0 As Adjusted 1 Underlying Combined Ratio As Adjusted 1 Underlying Loss & LAE Ratio 73.9% 75.5% 74.4% 73.6% 73.8% As Adjusted 1 Expense Ratio 16.8% 17.8% 17.6% 17.2% 18.1% As Adjusted 1 Underlying Combined Ratio 90.7% 93.3% 92.1% 90.8% 92.0% ¹ As Adjusted is a non-GAAP measure, which is comprised by excluding impact of purchase accounting in 2018 and including historical results of Kemper and Infinity in periods prior to acquisition date of July 2, 2018. Earnings Call Presentation – 3Q 2019 25

Non-GAAP Financial Measures As Adjusted for Acquisition – Continued Specialty Personal Automobile Insurance Three Months Ended 30-Sep-19 30-Jun-19 31-Mar-19 31-Dec-18 30-Sep-18 Earned Premiums Kemper Specialty Auto - GAAP As Reported $ 719.2 $ 703.7 $ 669.6 $ 660.5 $ 655.3 Current Year Non-CAT Losses and LAE Kemper Specialty Auto - GAAP As Reported $ 538.2 $ 537.0 $ 498.8 $ 492.0 $ 485.6 Less: Impact of Purchase Accounting Amortization of Fair Value Adjustment to Infinity's Unpaid Loss and LAE 0.6 0.9 1.3 1.5 2.0 As Adjusted 1 $ 537.6 $ 536.1 $ 497.5 $ 490.5 $ 483.6 Insurance Expenses Kemper Specialty Auto - GAAP As Reported $ 128.4 $ 128.9 $ 114.7 $ 132.5 $ 160.8 Less: Impact of Purchase Accounting 6.4 3.9 (2.5) 21.8 45.1 As Adjusted 1 $ 122.0 $ 125.0 $ 117.2 $ 110.7 $ 115.7 As Adjusted 1 Underlying Combined Ratio As Adjusted 1 Underlying Loss & LAE Ratio 74.7% 76.2% 74.3% 74.3% 73.8% As Adjusted 1 Expense Ratio 17.0% 17.8% 17.5% 16.8% 17.7% As Adjusted 1 Underlying Combined Ratio 91.7% 93.9% 91.8% 91.0% 91.5% ¹ As Adjusted is a non-GAAP measure, which is comprised by excluding impact of purchase accounting in 2018 and including historical results of Kemper and Infinity in periods prior to acquisition date of July 2, 2018. Earnings Call Presentation – 3Q 2019 26

XML

Document and Entity Information	Nov. 04, 2019
Cover page.
Document Type	8-K
Document Period End Date	Nov. 04, 2019
Entity Registrant Name	Kemper Corporation
Entity Central Index Key	0000860748
Amendment Flag	false
Entity File Number	001-18298
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	95-4255452
Entity Address, Address Line One	200 E. Randolph Street
Entity Address, Address Line Two	Suite 3300
Entity Address, City or Town	Chicago
Entity Address, State or Province	IL
Entity Address, Postal Zip Code	60601
City Area Code	312
Local Phone Number	661-4600
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Title of 12(b) Security	Common Stock, par value $0.10 per share
Trading Symbol	KMPR
Security Exchange Name	NYSE
Entity Emerging Growth Company	false