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): August 3, 2020 

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 August 3, 2020, Kemper Corporation ("Kemper" or the "Registrant") issued a press release announcing its financial results for the second quarter of 2020 and the availability of Kemper’s second quarter investor supplement and earnings call presentation on its website, kemper.com. The press release, the investor supplement and the earnings call presentation are furnished as Exhibits 99.1, 99.2 and 99.3, respectively, to this report.

Section 9. – Financial Statements and Exhibits.

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits

99.1 Registrant’s press release dated August 3, 2020.

99.2 Second Quarter 2020 Investor Supplement of Kemper Corporation.

99.3 Second Quarter 2020 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:	August 3, 2020	/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 Second Quarter 2020 Operating Results

CHICAGO, August 3, 2020 — Kemper Corporation (NYSE: KMPR) reported net income of $126.1 million, or $1.91 per diluted share, for the second quarter of 2020, compared to $122.1 million, or $1.84 per diluted share, for the second quarter of 2019. In the second quarter of 2020, net income included a $56.6 million after-tax gain, or $0.86 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 $130.5 million, or $1.97 per diluted share, for the second quarter of 2020, compared to $126.3 million, or $1.90 per diluted share, for the second quarter of 2019.

Adjusted Consolidated Net Operating Income¹ was $79.2 million, or $1.20 per diluted share, for the second quarter of 2020, compared to $91.5 million, or $1.38 per diluted share, for the second quarter of 2019.

Highlights of the quarter include:

• Delivered double-digit return on equity and solid adjusted consolidated net operating earnings per share

• Excluding impact of $100 million of premium credits in auto business, earned premiums increased 6% in the quarter

• Specialty P&C earned premiums increased by $80 million or 10%, excluding the impact of premium credits, and segment earnings grew ~8% over the quarter

• Strong capital and liquidity positions continue to provide significant financial flexibility

Including the impact of premium credits, consolidated earned premiums decreased by 3 percent, or $31.3 million in the quarter, compared to the second quarter of 2019. Specialty Property & Casualty Insurance segment’s earned premiums decreased by 1 percent, or $7.0 million in the quarter, compared to the second quarter of 2019.

“We had a strong quarter and successfully delivered profitable growth in an uncertain economic environment,” said Joseph P. Lacher, Jr., President and CEO. “Despite the challenges of the pandemic, our results in the quarter included gains in net income and earnings per share. This was highlighted by continued strong performance and industry-leading growth in our Specialty Auto business, where we generated approximately $68 million of earnings and maintained solid margins. Though a reduction in consumer shopping activity and other pandemic-related activities impacted new business sales, we achieved significant policy growth for the business and enhanced franchise value.

“The value of our diversified model enabled us to generate strong returns over the quarter with a rolling four-quarter return on tangible equity, excluding unrealized gains, of 19%. The positive investments and enhancements we’ve made across our businesses have resulted in significantly improved earnings and stable cash flows through both favorable as well as challenged economic environments. Additionally, the model provides meaningful capital efficiency. Together with strong execution, these advantages enable us to consistently generate attractive returns for our shareholders. Our results highlight all the benefits of this model.

“Our strong balance sheet and ample capital and liquidity positions provide significant financial flexibility. This not only allows us to support our businesses through turbulent times, but also enables us to act on the opportunities that may present themselves in the current environment, strengthening our competitive advantages, and delivering significant value to our shareholders over the long term.”

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.

	Three Months Ended						Six Months Ended
(Dollars in Millions, Except Per Share Amounts) (Unaudited)	Jun 30, 2020			Jun 30, 2019			Jun 30, 2020			Jun 30, 2019
Net Income	$	126.1		$	122.1		$	190.1		$	277.4
Adjusted Consolidated Net Operating Income1	$	79.2		$	91.5		$	242.1		$	190.4
Impact of Catastrophe Losses and Related Loss Adjustment Expense (LAE) on Net Income	$	(22.3	)	$	(22.8	)	$	(26.9	)	$	(36.6	)
Diluted Net Income Per Share From:
Net Income	$	1.91		$	1.84		$	2.85		$	4.20
Adjusted Consolidated Net Operating Income1	$	1.20		$	1.38		$	3.63		$	2.88
Impact of Catastrophe Losses and Related LAE on Net Income Per Share	$	(0.34	)	$	(0.35	)	$	(0.41	)	$	(0.56	)

Capital

Total Shareholders’ Equity at the end of the quarter was $4,187.9 million, an increase of $215.6 million, or 5 percent, since year-end 2019 primarily driven by net income. Kemper ended the quarter with cash and investments at the holding company of $270.5 million, and the $400 million revolving credit agreement was undrawn.

During the second quarter of 2020, Kemper paid dividends of $19.7 million and repurchased and retired 0.1 million shares of its common stock at an aggregate cost of $9.2 million.

On May 6, 2020, Kemper announced that its Board of Directors declared a quarterly dividend of $0.30 per share. Additionally, Kemper’s Board of Directors authorized the repurchase of an additional $200 million of Kemper’s common stock, in addition to $133 million remaining under the August 6, 2014 authorization, bringing the remaining share repurchase authorization to approximately $333 million as of May 6, 2020.  The amount and timing of any future share repurchases under the authorization will depend on a variety of factors, including market conditions, the Company’s financial condition, results of operations, available liquidity, particular circumstances and other considerations.

Kemper ended the quarter with a book value per share of $64.15, an increase of 8 percent from $59.59 at the end of 2019. Book Value Per Share Excluding Net Unrealized Gains on Fixed Maturities¹ was $55.13, up 4 percent from $53.08 at the end of 2019.

Revenues

Total revenues for the second quarter of 2020decreased$44.5 million, or 3.4 percent, to $1,230.9 million, compared to the second quarter of 2019, driven by $7.0 million of lower Specialty P&C earned premiums and a $21.2 million decrease in Other Income, offset by a $46.1 million increase attributable to the change in fair value of equity and convertible securities. Specialty P&C earned premiums decreased due primarily to premium credits issued to policyholders during the second quarter. Net investment income decreased$28.2 million to $67.8 million in the second quarter of 2020 due primarily to a lower rate of return from Alternative Investments, lower yields on fixed income securities, and higher investment expenses. Net realized investment gains were $11.7 million in the second quarter of 2020, compared to $21.3 million in thesecond quarter of 2019. Other income decreased from $22.7 million to $1.5 million in the second quarter of 2020.

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						Six Months Ended
(Dollars in Millions) (Unaudited)	Jun 30, 2020			Jun 30, 2019			Jun 30, 2020			Jun 30, 2019
Segment Net Operating Income:
Specialty Property & Casualty Insurance	$	67.5		$	62.7		$	127.6		$	142.3
Preferred Property & Casualty Insurance	0.9			5.2			19.3			8.0
Life & Health Insurance	16.1			13.3			38.4			36.4
Total Segment Net Operating Income	84.5			81.2			185.3			186.7
Corporate and Other Net Operating Income (Loss)	(5.3		)	10.3			56.8			3.7
Adjusted Consolidated Net Operating Income1	79.2			91.5			242.1			190.4
Net Income (Loss) From:
Change in Fair Value of Equity and Convertible Securities	56.6			20.1			(36.5		)	71.0
Net Realized Gains on Sales of Investments	9.3			16.8			22.3			29.5
Impairment Losses	(5.5		)	(5.3		)	(15.0		)	(8.1		)
Acquisition Related Transaction, Integration and Other Costs	(13.5		)	(1.0		)	(22.8		)	(5.4		)
Net Income	$	126.1		$	122.1		$	190.1		$	277.4

The Specialty Property & Casualty Insurance segment reported net operating income of $67.5 million for the second quarter of 2020, compared to $62.7 million in the second quarter of 2019. Results improved primarily due to an improvement in incurred losses and LAE (excluding loss and LAE reserve development). The segment’s Underlying Combined Ratio¹ was 89.1 percent, compared to 94.0 percent in the second quarter of 2019.

The Preferred Property & Casualty Insurance segment reported net operating income of $0.9 million for the second quarter of 2020, compared to $5.2 million in the second quarter of 2019. Results deteriorated primarily due to lower net investment income and adverse impact of prior year reserve development, partially offset by lower underlying losses and LAE and catastrophe losses and LAE (excluding loss and LAE reserve development). The Preferred Property & Casualty Insurance segment’s Underlying Combined Ratio¹improved9.5 percentage points to 84.4 percent in the second quarter of 2020 due primarily to lower incurred losses and LAE as a percentage of earned premiums in 2020, compared to 2019.

The Life & Health Insurance segment reported net operating income of $16.1 million for the second quarter of 2020, compared to $13.3 million in the second quarter of 2019. Results improved primarily due to lower insurance expenses and a reduction to the Company’s estimate of the ultimate cost of using death verification databases in the Company’s operations, partially offset by lower net investment income.

3

Unaudited condensed consolidated statements of income for the three and six months ended June 30, 2020 and 2019 are presented below.

	Three Months Ended						Six Months Ended
(Dollars in Millions, Except Per Share Amounts)	June 30, 2020			June 30, 2019			June 30, 2020			June 30, 2019
Revenues:
Earned Premiums	$	1,085.3		$	1,116.6		$	2,251.7		$	2,191.4
Net Investment Income	67.8			96.0			153.4			178.7
Other Income	1.5			22.7			91.8			24.6
Income (Loss) from Change in Fair Value of Equity and Convertible Securities	71.6			25.5			(46.2		)	89.9
Net Realized Gains on Sales of Investments	11.7			21.3			28.2			37.4
Impairment Losses	(7.0		)	(6.7		)	(19.0		)	(10.3		)
Total Revenues	1,230.9			1,275.4			2,459.9			2,511.7
Expenses:
Policyholders’ Benefits and Incurred Losses and Loss Adjustment Expenses	747.5			825.4			1,582.7			1,590.8
Insurance Expenses	272.7			263.5			544.3			498.3
Interest and Other Expenses	51.0			38.0			95.5			79.4
Total Expenses	1,071.2			1,126.9			2,222.5			2,168.5
Income from before Income Taxes	159.7			148.5			237.4			343.2
Income Tax Expense	(33.6		)	(26.4		)	(47.3		)	(65.8		)
Net Income	$	126.1		$	122.1		$	190.1		$	277.4
Net Income Per Unrestricted Share:
Basic	$	1.93		$	1.87		$	2.88		$	4.25
Diluted	$	1.91		$	1.84		$	2.85		$	4.20
Weighted-average Outstanding (Shares in Thousands):
Unrestricted Shares - Basic	65,257.6			65,408.1			65,886.8			65,113.2
Unrestricted Shares and Equivalent Shares - Diluted	66,020.8			66,189.9			66,667.9			65,899.6
Dividends Paid to Shareholders Per Share	$	0.30		$	0.25		$	0.60		$	0.50

4

Unaudited business segment revenues for the three and six months ended June 30, 2020 and 2019 are presented below.

	Three Months Ended						Six Months Ended
(Dollars in Millions)	Jun 30, 2020			Jun 30, 2019			Jun 30, 2020			Jun 30, 2019
REVENUES:
Specialty Property & Casualty Insurance:
Earned Premiums:
Specialty Automobile	$	689.8		$	703.7		$	1,443		$	1,373.3
Commercial Automobile	69.2			62.3			138.5			122
Total Earned Premiums	759.0			766.0			1,581.5			1,495.3
Net Investment Income	16.9			28.9			45.7			50.4
Other Income	0.1			1.0			1.0			1.8
Total Specialty Property & Casualty Insurance Revenues	776.0			795.9			1,628.2			1,547.5
Preferred Property & Casualty Insurance:
Earned Premiums:
Preferred Automobile	99.1			117.9			214.0			233.3
Homeowners	55.6			60.8			112.4			121.1
Other Personal	8.9			9.8			18.1			19.7
Total Earned Premiums	163.6			188.5			344.5			374.1
Net Investment Income	4.3			12.3			14.0			20.6
Other Income	0.1			—			0.1			—
Total Preferred Property & Casualty Insurance Revenues	168.0			200.8			358.6			394.7
Life & Health Insurance:
Earned Premiums:
Life	95.7			97.0			192.9			192.8
Accident & Health	50.8			47.9			100.2			94.8
Property	16.2			17.2			32.6			34.4
Total Earned Premiums	162.7			162.1			325.7			322.0
Net Investment Income	44.3			53.0			95.3			104.7
Other Income	0.5			1.6			0.6			2.7
Total Life & Health Insurance Revenues	207.5			216.7			421.6			429.4
Total Segment Revenues	1,151.5			1,213.4			2,408.4			2,371.6
Income (Loss) from Change in Fair Value of Equity and Convertible Securities	71.6			25.5			(46.2		)	89.9
Net Realized Gains on Sales of Investments	11.7			21.3			28.2			37.4
Impairment Losses	(7.0		)	(6.7		)	(19.0		)	(10.3		)
Other	3.1			21.9			88.5			23.1
Total Revenues	$	1,230.9		$	1,275.4		$	2,459.9		$	2,511.7

5

KEMPER CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (Dollars in Millions) (Unaudited)
	Jun 30, 2020		Dec 31, 2019
Assets:
Investments:
Fixed Maturities at Fair Value	$	7,480.4	$	6,922.1
Equity Securities at Fair Value	783.3		907.3
Equity Securities at Modified Cost	48.1		41.9
Equity Method Limited Liability Investments at Cost Plus Cumulative Undistributed Earnings	209.9		220.4
Convertible Securities at Fair Value	35.0		37.3
Short-term Investments at Cost which Approximates Fair Value	154.2		470.9
Other Investments	757.5		661.5
Total Investments	9,468.4		9,261.4
Cash	389.3		136.8
Receivables from Policyholders	1,165.3		1,117.1
Other Receivables	207.1		219.7
Deferred Policy Acquisition Costs	560.8		537.7
Goodwill	1,114.0		1,114.0
Current Income Tax Assets	3.5		44.7
Other Assets	581.0		557.7
Total Assets	$	13,489.4	$	12,989.1
Liabilities and Shareholders’ Equity:
Insurance Reserves:
Life & Health	$	3,497.7	$	3,502.0
Property & Casualty	1,877.3		1,969.8
Total Insurance Reserves	5,375.0		5,471.8
Unearned Premiums	1,642.6		1,545.5
Policyholder Contract Liabilities	520.3		309.8
Deferred Income Tax Liabilities	226.8		178.2
Accrued Expenses and Other Liabilities	759.1		733.1
Debt at Amortized Cost	777.7		778.4
Total Liabilities	9,301.5		9,016.8
Shareholders’ Equity:
Common Stock	6.5		6.7
Paid-in Capital	1,792.5		1,819.2
Retained Earnings	1,891.6		1,810.3
Accumulated Other Comprehensive Income	497.3		336.1
Total Shareholders’ Equity	4,187.9		3,972.3
Total Liabilities and Shareholders’ Equity	$	13,489.4	$	12,989.1

6

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

	Three Months Ended						Six Months Ended
(Dollars in Millions)	Jun 30, 2020			Jun 30, 2019			Jun 30, 2020			Jun 30, 2019
Results of Operations
Net Premiums Written	$	780.9		$	804.7		$	1,692.1		$	1,613.8
Earned Premiums	$	759.0		$	766.0		$	1,581.5		$	1,495.3
Net Investment Income	16.9			28.9			45.7			50.4
Other Income	0.1			1.0			1.0			1.8
Total Revenues	776.0			795.9			1,628.2			1,547.5
Incurred Losses and LAE related to:
Current Year:
Non-catastrophe Losses and LAE	515.8			579.2			1,135.6			1,123.5
Catastrophe Losses and LAE	4.5			4.4			4.7			5.0
Prior Years:
Non-catastrophe Losses and LAE	9.6			(8.6		)	14.9			(26.9		)
Catastrophe Losses and LAE	—			(0.1		)	0.2			0.1
Total Incurred Losses and LAE	529.9			574.9			1,155.4			1,101.7
Insurance Expenses	161.2			140.9			313.3			265.7
Other Expenses	0.4			0.7			—			1.3
Operating Income	84.5			79.4			159.5			178.8
Income Tax Benefit	(17.0		)	(16.7		)	(31.9		)	(36.5		)
Segment Net Operating Income	$	67.5		$	62.7		$	127.6		$	142.3
Ratios Based On Earned Premiums
Current Year Non-catastrophe Losses and LAE Ratio	67.9		%	75.6		%	71.9		%	75.2		%
Current Year Catastrophe Losses and LAE Ratio	0.6			0.6			0.3			0.3
Prior Years Non-catastrophe Losses and LAE Ratio	1.3			(1.1		)	0.9			(1.8		)
Prior Years Catastrophe Losses and LAE Ratio	—			—			—			—
Total Incurred Loss and LAE Ratio	69.8			75.1			73.1			73.7
Insurance Expense Ratio	21.2			18.4			19.8			17.8
Combined Ratio	91.0		%	93.5		%	92.9		%	91.5		%
Underlying Combined Ratio1
Current Year Non-catastrophe Losses and LAE Ratio	67.9		%	75.6		%	71.9		%	75.2		%
Insurance Expense Ratio	21.2			18.4			19.8			17.8
Underlying Combined Ratio1	89.1		%	94.0		%	91.7		%	93.0		%
Non-GAAP Measure Reconciliation
Combined Ratio	91.0		%	93.5		%	92.9		%	91.5		%
Current Year Catastrophe Losses and LAE Ratio	0.6			0.6			0.3			0.3
Prior Years Non-catastrophe Losses and LAE Ratio	1.3			(1.1		)	0.9			(1.8		)
Prior Years Catastrophe Losses and LAE Ratio	—			—			—			—
Underlying Combined Ratio1	89.1		%	94.0		%	91.7		%	93.0		%

7

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

	Three Months Ended						Six Months Ended
(Dollars in Millions)	Jun 30, 2020			Jun 30, 2019			Jun 30, 2020			Jun 30, 2019
Results of Operations
Net Premiums Written	$	161.5		$	197.5		$	325.6		$	377.1
Earned Premiums	$	163.6		$	188.5		$	344.5		$	374.1
Net Investment Income	4.3			12.3			14.0			20.6
Other Income	0.1			—			0.1			—
Total Revenues	168.0			200.8			358.6			394.7
Incurred Losses and LAE related to:
Current Year:
Non-catastrophe Losses and LAE	82.5			119.1			191.0			239.9
Catastrophe Losses and LAE	20.6			22.6			25.4			39.2
Prior Years:
Non-catastrophe Losses and LAE	8.2			(4.3		)	4.9			(9.4		)
Catastrophe Losses and LAE	0.4			(0.9		)	(0.7		)	0.1
Total Incurred Losses and LAE	111.7			136.5			220.6			269.8
Insurance Expenses	55.5			57.9			114.2			115.2
Other Expenses	—			—			—			—
Operating Income	0.8			6.4			23.8			9.7
Income Tax Expense	0.1			(1.2		)	(4.5		)	(1.7		)
Segment Net Operating Income	$	0.9		$	5.2		$	19.3		$	8.0
Ratios Based On Earned Premiums
Current Year Non-catastrophe Losses and LAE Ratio	50.5		%	63.2		%	55.4		%	64.1		%
Current Year Catastrophe Losses and LAE Ratio	12.6			12.0			7.4			10.5
Prior Years Non-catastrophe Losses and LAE Ratio	5.0			(2.3		)	1.4			(2.5		)
Prior Years Catastrophe Losses and LAE Ratio	0.2			(0.5		)	(0.2		)	—
Total Incurred Loss and LAE Ratio	68.3			72.4			64.0			72.1
Insurance Expense Ratio	33.9			30.7			33.1			30.8
Combined Ratio	102.2		%	103.1		%	97.1		%	102.9		%
Underlying Combined Ratio1
Current Year Non-catastrophe Losses and LAE Ratio	50.5		%	63.2		%	55.4		%	64.1		%
Insurance Expense Ratio	33.9			30.7			33.1			30.8
Impact on Ratio from Write-off of Long-lived Asset	—			—			—			—
Underlying Combined Ratio1	84.4		%	93.9		%	88.5		%	94.9		%
Non-GAAP Measure Reconciliation
Combined Ratio	102.2		%	103.1		%	97.1		%	102.9		%
Current Year Catastrophe Losses and LAE Ratio	12.6			12.0			7.4			10.5
Prior Years Non-catastrophe Losses and LAE Ratio	5.0			(2.3		)	1.4			(2.5		)
Prior Years Catastrophe Losses and LAE Ratio	0.2			(0.5		)	(0.2		)	—
Underlying Combined Ratio1	84.4		%	93.9		%	88.5		%	94.9		%

8

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

	Three Months Ended						Six Months Ended
(Dollars in Millions)	Jun 30, 2020			Jun 30, 2019			Jun 30, 2020			Jun 30, 2019
Results of Operations
Earned Premiums	$	162.7		$	162.1		$	325.7		$	322.0
Net Investment Income	44.3			53.0			95.3			104.7
Other Income	0.5			1.6			0.6			2.7
Total Revenues	207.5			216.7			421.6			429.4
Policyholders’ Benefits and Incurred Losses and LAE	105.9			113.5			206.6			218.9
Insurance Expenses	81.7			87.1			168.6			165.1
Operating Profit	19.9			16.1			46.4			45.4
Income Tax Expense	(3.8		)	(2.8		)	(8.0		)	(9.0		)
Segment Net Operating Income	$	16.1		$	13.3		$	38.4		$	36.4

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 Net Income 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) impairment losses 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 Net Income.

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. Income (Loss) from Change in Fair Value of Equity and Convertible Securities, Net Realized Gains on Sales of Investments and Impairment Losses related to investments included in the Company’s results may vary significantly between periods and are generally driven by business decisions and external economic developments such as capital market conditions that impact the values of the Company’s investments, the timing of which is unrelated to the insurance underwriting process. 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 Net Income to Adjusted Consolidated Net Operating Income¹ for the three and six months ended June 30, 2020 and 2019 is presented below.

	Three Months Ended						Six Months Ended
(Dollars in Millions) (Unaudited)	Jun 30, 2020			Jun 30, 2019			Jun 30, 2020			Jun 30, 2019
Net Income	$	126.1		$	122.1		$	190.1		$	277.4
Less Net Income (Loss) From:
Change in Fair Value of Equity and Convertible Securities	56.6			20.1			(36.5		)	71.0
Net Realized Gains on Sales of Investments	9.3			16.8			22.3			29.5
Impairment Losses	(5.5		)	(5.3		)	(15.0		)	(8.1		)
Acquisition Related Transaction, Integration and Other Costs	(13.5		)	(1.0		)	(22.8		)	(5.4		)
Adjusted Consolidated Net Operating Income1	$	79.2		$	91.5		$	242.1		$	190.4

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 Net Income.

A reconciliation of Diluted Net Income to Diluted Adjusted Consolidated Net Operating Income Per Unrestricted Share¹ for the three and six months ended June 30, 2020 and 2019 is presented below.

	Three Months Ended						Six Months Ended
(Unaudited)	Jun 30, 2020			Jun 30, 2019			Jun 30, 2020			Jun 30, 2019
Diluted Net Income	$	1.91		$	1.84		$	2.85		$	4.20
Less Net Income (Loss) Per Unrestricted Share From:
Change in Fair Value of Equity and Convertible Securities	0.86			0.30			(0.55		)	1.07
Net Realized Gains on Sales of Investments	0.14			0.25			0.33			0.45
Impairment Losses	(0.08		)	(0.08		)	(0.22		)	(0.12		)
Acquisition Related Transaction, Integration and Other Costs	(0.21		)	(0.01		)	(0.34		)	(0.08		)
Diluted Adjusted Consolidated Net Operating Income Per Unrestricted Share1	$	1.20		$	1.38		$	3.63		$	2.88

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 June 30, 2020 and December 31, 2019 is presented below.

(Dollars in Millions) (Unaudited)	Jun 30, 2020		Dec 31, 2019
Shareholders’ Equity	$	4,187.9	$	3,972.3
Net Unrealized Gains on Fixed Maturities	588.6		434.0
Shareholders’ Equity Excluding Net Unrealized Gains on Fixed Maturities1	$	3,599.3	$	3,538.3

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 or As Adjusted for Acquisition¹ 

As Adjusted or As Adjusted for Acquisition¹ amounts are non-GAAP financial measures. For three months endedJune 30, 2020 and June 30, 2019, As Adjusted¹ 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 endedJune 30, 2020 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	$	126.1	$	(4.4	)	$	130.5
Net Income Per Share - Diluted	$	1.91	$	(0.06	)	$	1.97
Specialty Property & Casualty Insurance Segment:
Segment Net Operating Income	$	67.5	$	(4.2	)	$	71.7

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 endedJune 30, 2019 is presented below.

(Dollars in Millions) (Unaudited)	Kemper Consolidated GAAP Financial Measure		Less Impact of Purchase Accounting Adjustments			As Adjusted for Acquisition1
Net Income	$	122.1	$	(4.2	)	$	126.3
Net Income Per Share - Diluted	$	1.84	$	(0.06	)	$	1.90
Specialty Property & Casualty Insurance Segment:
Segment Net Operating Income	$	62.7	$	(4.4	)	$	67.1

Conference Call

Kemper will discuss its second quarter 2020 results in a conference call on Monday, August 3, at 5:00 p.m. Eastern (4:00 p.m. Central) Time. Kemper’s conference call will be accessible via the internet and by telephone. The phone number for Kemper’s conference call is 844.826.3041. To listen via webcast, register online at the investor section of kemper.com at least 15 minutes prior to the webcast to download and install any necessary software.

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

More detailed financial information can be found in Kemper’s Investor Financial Supplement and Earnings Call Presentation for the second quarter of 2020, 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 $13 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 9,200 associates dedicated to meeting the ever-changing needs of its customers.

Learn more about Kemper.

Caution Regarding Forward-Looking Statements

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 those factors listed in periodic reports filed by Kemper with the Securities and Exchange Commission (“SEC”). The COVID-19 outbreak and subsequent global pandemic (“Pandemic”) is an extraordinary event that creates unique uncertainties and risks. Kemper cannot provide any assurances as to the impacts of the Pandemic and related economic conditions on the Company’s operating and financial results.

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, including any such statements related to the Pandemic. 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 cpatrick@kemper.com
Media: Barbara Ciesemier	312.661.4521 or bciesemier@kemper.com

13

EX-99.2

Exhibit 99.2

Investor Supplement

Second Quarter 2020

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 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 factors listed in periodic reports filed by Kemper Corporation with the SEC. The COVID-19 outbreak and subsequent global pandemic (“Pandemic”) is an extraordinary event that creates unique uncertainties and risks. Kemper cannot provide any assurances as to the impacts of the Pandemic and related economic conditions on the Company’s operating and financial results.

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, including any such statements related to the Pandemic. The reader is advised, however, to consult any further disclosures Kemper makes on related subjects in its filings with the SEC.

Kemper Corporation

Investor Supplement

Second Quarter 2020

Table of Contents

	Page
Consolidated Financial Highlights	3
Consolidated Statements of Income	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	12
Net Operating Income	12
Catastrophe Frequency and Severity	13
Specialty Property & Casualty Insurance Segment - Results of Operations and Selected Financial Information	14-15
Specialty Personal Automobile Insurance	16
Commercial Automobile Insurance	17
Preferred Property & Casualty Insurance Segment - Results of Operations and Selected Financial Information	18-19
Preferred Personal Automobile Insurance	20
Homeowners and Other Personal Insurance	21
Homeowners Insurance	22
Other Personal Insurance	23
Life & Health Insurance Segment - Results of Operations and Selected Financial Information	24
Life Insurance	25
Accident and Health Insurance	25
Property Insurance	26
Insurance Expenses and Interest and Other Expenses	27
Details of Investment Performance	28
Details of Invested Assets	29-30
Investment Concentration	31
Municipal Bond Securities	32
Investments in Limited Liability Companies and Limited Partnerships	33
Definitions of Non-GAAP Financial Measures	34-35
As Adjusted for Acquisition	36
As Adjusted - Selected Consolidated Financial Information	37
As Adjusted - Specialty Property & Casualty Insurance Segment Selected Financial Information	38
As Adjusted - Specialty Personal Automobile Insurance Selected Financial Information	39

Kemper Corporation Consolidated Financial Highlights (Dollars in Millions, Except Per Share Amounts) (Unaudited)
	Three Months Ended																		Six Months Ended
	Jun 30, 2020			Mar 31, 2020			Dec 31, 2019			Sep 30, 2019			Jun 30, 2019			Mar 31, 2019			Jun 30, 2020			Jun 30, 2019
For Period Ended
Earned Premiums	$	1,085.3		$	1,166.4		$	1,145.8		$	1,135.2		$	1,116.6		$	1,074.8		$	2,251.7		$	2,191.4
Net Investment Income	67.8			85.6			93.9			91.7			96.0			82.7			153.4			178.7
Other Income	1.5			90.3			3.7			7.2			22.7			1.9			91.8			24.6
Income (Loss) from Change in Fair Value of Equity and Convertible Securities	71.6			(117.8		)	39.2			9.8			25.5			64.4			(46.2		)	89.9
Net Investment Gains (Loss)	4.7			4.5			1.1			(0.1		)	14.6			12.5			9.2			27.1
Total Revenues	$	1,230.9		$	1,229.0		$	1,283.7		$	1,243.8		$	1,275.4		$	1,236.3		$	2,459.9		$	2,511.7
Net Income	$	126.1		$	64.0		$	124.7		$	129.0		$	122.1		$	155.3		$	190.1		$	277.4
Adjusted Consolidated Net Operating Income 1	$	79.2		$	162.9		$	97.9		$	130.0		$	91.5		$	98.9		$	242.1		$	190.4
Per Unrestricted Common Share Amounts:
Basic:
Net Income	$	1.93		$	0.96		$	1.87		$	1.93		$	1.87		$	2.38		$	2.88		$	4.25
Adjusted Consolidated Net Operating Income 1	$	1.21		$	2.45		$	1.46		$	1.95		$	1.39		$	1.52		$	3.67		$	2.91
Diluted:
Net Income	$	1.91		$	0.95		$	1.85		$	1.91		$	1.84		$	2.35		$	2.85		$	4.20
Adjusted Consolidated Net Operating Income 1	$	1.20		$	2.43		$	1.45		$	1.93		$	1.38		$	1.50		$	3.63		$	2.88
Dividends Paid to Shareholders Per Share	$	0.30		$	0.30		$	0.28		$	0.25		$	0.25		$	0.25		$	0.60		$	0.50
At Period End
Total Assets	$	13,489.4		$	12,932.3		$	12,989.1		$	12,819.9		$	12,616.5		$	12,182.2
Insurance Reserves	$	5,375.0		$	5,442.4		$	5,471.8		$	5,441.3		$	5,426.1		$	5,370.4
Debt	$	777.7		$	778.1		$	778.4		$	778.7		$	873.3		$	908.5
Shareholders’ Equity	$	4,187.9		$	3,760.8		$	3,972.3		$	3,894.2		$	3,683.7		$	3,320.1
Shareholders’ Equity Excluding Goodwill1,2	$	3,073.9		$	2,646.8		$	2,858.3		$	2,780.2		$	2,569.7		$	2,208.6
Common Shares Issued and Outstanding (In Millions)	65.282			65.365			66.666			66.642			66.564			64.931
Book Value Per Share2	$	64.15		$	57.54		$	59.59		$	58.43		$	55.34		$	51.13
Book Value Per Share Excluding Goodwill1,2	$	47.09		$	40.49		$	42.87		$	41.72		$	38.60		$	34.01
Book Value Per Share Excluding Net Unrealized Gains on Fixed Maturities1,2	$	55.13		$	53.53		$	53.08		$	51.51		$	49.82		$	47.41
Book Value Per Share Excluding Net Unrealized Gains on Fixed Maturities and Goodwill1,2	$	38.07		$	36.49		$	36.36		$	34.80		$	33.08		$	30.29
Debt to Total Capitalization2	15.7		%	17.1		%	16.4		%	16.7		%	19.2		%	21.5		%
Rolling 12 Months Return on 5-point Average Shareholders Equity2,3	11.4		%	11.8		%	14.8		%	12.1		%	12.4		%	10.8		%
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 Income (Dollars in Millions, Except Per Share Amounts)  (Unaudited)
	Three Months Ended																		Six Months Ended
	Jun 30, 2020			Mar 31, 2020			Dec 31, 2019			Sep 30, 2019			Jun 30, 2019			Mar 31, 2019			Jun 30, 2020			Jun 30, 2019
Revenues:
Earned Premiums	$	1,085.3		$	1,166.4		$	1,145.8		$	1,135.2		$	1,116.6		$	1,074.8		$	2,251.7		$	2,191.4
Net Investment Income	67.8			85.6			93.9			91.7			96.0			82.7			153.4			178.7
Other Income	1.5			90.3			3.7			7.2			22.7			1.9			91.8			24.6
Income from Change in Fair Value of Equity and Convertible Securities	71.6			(117.8		)	39.2			9.8			25.5			64.4			(46.2		)	89.9
Net Realized Gains on Sales of Investments	11.7			16.5			2.8			1.7			21.3			16.1			28.2			37.4
Impairment Losses	(7.0		)	(12.0		)	(1.7		)	(1.8		)	(6.7		)	(3.6		)	(19.0		)	(10.3		)
Total Revenues	1,230.9			1,229.0			1,283.7			1,243.8			1,275.4			1,236.3			2,459.9			2,511.7
Expenses:
Policyholders’ Benefits and Incurred Losses and Loss Adjustment Expenses	747.5			835.2			814.9			782.6			825.4			765.4			1,582.7			1,590.8
Insurance Expenses	272.7			271.6			265.4			256.0			263.5			234.8			544.3			498.3
Loss from Early Extinguishment of Debt	—			—			—			5.8			—			—			—			—
Interest and Other Expenses	51.0			44.5			46.5			37.9			38.0			41.4			95.5			79.4
Total Expenses	1,071.2			1,151.3			1,126.8			1,082.3			1,126.9			1,041.6			2,222.5			2,168.5
Income before Income Taxes	159.7			77.7			156.9			161.5			148.5			194.7			237.4			343.2
Income Tax Expense	(33.6		)	(13.7		)	(32.2		)	(32.5		)	(26.4		)	(39.4		)	(47.3		)	(65.8		)
Net Income	$	126.1		$	64.0		$	124.7		$	129.0		$	122.1		$	155.3		$	190.1		$	277.4
Income Per Unrestricted Share:
Basic	$	1.93		$	0.96		$	1.87		$	1.93		$	1.87		$	2.38		$	2.88		$	4.25
Diluted	$	1.91		$	0.95		$	1.85		$	1.91		$	1.84		$	2.35		$	2.85		$	4.20
Net Income Per Unrestricted Share:
Basic	$	1.93		$	0.96		$	1.87		$	1.93		$	1.87		$	2.38		$	2.88		$	4.25
Diluted	$	1.91		$	0.95		$	1.85		$	1.91		$	1.84		$	2.35		$	2.85		$	4.20
Dividends Paid to Shareholders Per Share	$	0.30		$	0.30		$	0.28		$	0.25		$	0.25		$	0.25		$	0.60		$	0.50
Weighted Average Unrestricted Common Shares Outstanding (in Millions)	65.258			66.516			66.650			66.622			65.408			64.815			65.887			65.113

Page 4

Kemper Corporation Consolidated Balance Sheets (Dollars in Millions)  (Unaudited)
	Jun 30, 2020		Mar 31, 2020		Dec 31, 2019		Sep 30, 2019		Jun 30, 2019		Mar 31, 2019
Assets:
Investments:
Fixed Maturities at Fair Value	$	7,480.4	$	6,998.5	$	6,922.1	$	6,883.6	$	6,540.2	$	6,573.1
Equity Securities at Fair Value	783.3		709.8		907.3		928.7		923.3		916.9
Equity Securities at Modified Cost	48.1		44.8		41.9		41.2		38.1		39.2
Equity Method Limited Liability Investments at Cost Plus Cumulative Undistributed Earnings	209.9		226.3		220.4		213.4		219.7		197.8
Convertible Securities at Fair Value	35.0		32.8		37.3		35.6		34.3		33.8
Short-term Investments at Cost which Approximates Fair Value	154.2		166.7		470.9		424.2		642.5		350.4
Other Investments	757.5		760.2		661.5		561.6		554.3		485.9
Total Investments	9,468.4		8,939.1		9,261.4		9,088.3		8,952.4		8,597.1
Cash	389.3		301.3		136.8		133.6		104.4		107.0
Receivables from Policyholders	1,165.3		1,219.1		1,117.1		1,139.8		1,095.2		1,048.6
Other Receivables	207.1		207.8		219.7		217.1		248.1		254.6
Deferred Policy Acquisition Costs	560.8		551.5		537.7		536.5		521.0		499.2
Goodwill	1,114.0		1,114.0		1,114.0		1,114.0		1,114.0		1,111.5
Current Income Tax Assets	3.5		17.8		44.7		44.1		41.0		19.7
Other Assets	581.0		581.7		557.7		546.5		540.4		544.5
Total Assets	$	13,489.4	$	12,932.3	$	12,989.1	$	12,819.9	$	12,616.5	$	12,182.2
Liabilities and Shareholders’ Equity:
Insurance Reserves:
Life and Health	$	3,497.7	$	3,500.8	$	3,502.0	$	3,499.7	$	3,514.2	$	3,501.7
Property and Casualty	1,877.3		1,941.6		1,969.8		1,941.6		1,911.9		1,868.7
Total Insurance Reserves	5,375.0		5,442.4		5,471.8		5,441.3		5,426.1		5,370.4
Unearned Premiums	1,642.6		1,621.4		1,545.5		1,574.9		1,545.6		1,499.5
Policyholder Contract Liabilities	520.3		430.5		309.8		204.1		221.8		254.5
Deferred Income Tax Liabilities	226.8		116.0		178.2		175.3		124.1		82.6
Liability for Unrecognized Tax Benefits	—		—		—		—		—		3.9
Accrued Expenses and Other Liabilities	759.1		783.1		733.1		751.4		741.9		742.7
Long-term Debt, Current and Non-current, at Amortized Cost	777.7		778.1		778.4		778.7		873.3		908.5
Total Liabilities	9,301.5		9,171.5		9,016.8		8,925.7		8,932.8		8,862.1
Shareholders’ Equity:
Common Stock	6.5		6.5		6.7		6.7		6.7		6.5
Paid-in Capital	1,792.5		1,788.2		1,819.2		1,812.9		1,806.4		1,673.0
Retained Earnings	1,891.6		1,791.2		1,810.3		1,704.5		1,593.7		1,489.7
Accumulated Other Comprehensive Income	497.3		174.9		336.1		370.1		276.9		150.9
Total Shareholders’ Equity	4,187.9		3,760.8		3,972.3		3,894.2		3,683.7		3,320.1
Total Liabilities and Shareholders’ Equity	$	13,489.4	$	12,932.3	$	12,989.1	$	12,819.9	$	12,616.5	$	12,182.2

Page 5

Kemper Corporation Consolidated Statements of Cash Flows (Dollars in Millions)  (Unaudited)
	Six Months Ended
	Jun 30, 2020			Jun 30, 2019
Operating Activities:
Net Income	$	190.1		$	277.4
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities:
Increase in Deferred Policy Acquisition Costs	(23.1		)	(51.1		)
Amortization of Intangible Assets Acquired	9.5			16.7
Equity in Earnings of Equity Method Limited Liability Investments	10.9			(1.0		)
Distribution of Accumulated Earnings of Equity Method Limited Liability Investments	—			6.3
Decrease (Increase) in Value of Equity Securities at Fair Value	46.2			(89.9		)
Amortization of Investment Securities and Depreciation of Investment Real Estate	1.0			5.9
Net Realized Gains on Sales of Investments	(28.2		)	(37.4		)
Impairment Losses	19.0			10.3
Depreciation and Amortization of Property, Equipment and Software	16.8			14.8
Increase in Receivables	(36.3		)	(95.0		)
Increase (Decrease) in Insurance Reserves	(96.7		)	56.2
Increase in Unearned Premiums	97.1			121.3
Change in Income Taxes	46.5			23.2
Change in Accrued Expenses and Other Liabilities	10.7			(22.5		)
Other, Net	0.3			1.3
Net Cash Provided by Operating Activities (Carryforward to page 7)	263.8			236.5

Page 6

Kemper Corporation Consolidated Statements of Cash Flows (Dollars in Millions)  (Unaudited)
	Six Months Ended
	Jun 30, 2020			Jun 30, 2019
Net Cash Provided by Operating Activities (Carryforward from page 6)	263.8			236.5
Investing Activities:
Sales, Paydowns and Maturities of Fixed Maturities	482.5			959.0
Purchases of Fixed Maturities	(832.2		)	(721.5		)
Sales of Equity and Convertible Securities	382.6			82.7
Purchases of Equity and Convertible Securities	(309.2		)	(231.7		)
Acquisition and Improvements of Investment Real Estate	(0.1		)	(0.6		)
Sales of Investment Real Estate	5.4			—
Sale of and Return of Investment of Equity Method Limited Liability Investments	12.0			13.7
Acquisitions of Equity Method Limited Liability Investments	(12.4		)	(51.6		)
Decrease (Increase) in Short-term Investments	326.7			(353.4		)
Acquisitions of Mortgage Loans	(10.5		)	—
Paydowns of Mortgage Loans	13.1			—
Increase (Decrease) in Other Investments	0.1			(29.2		)
Purchase of Corporate-owned Life Insurance	(100.0		)	(50.0		)
Acquisition of Software and Long-lived Assets	(39.4		)	(30.7		)
Other, Net	4.6			(0.3		)
Net Cash Provided (Used) by Investing Activities	(76.8		)	(413.6		)
Financing Activities:
Proceeds from Policyholder Contract Liabilities	322.9			259.0
Repayment of Policyholder Contract Liabilities	(112.8		)	(113.9		)
Proceeds from Issuance of Common Stock, Net of Transaction Costs	—			127.5
Repayments of Long-term Debt	—			(35.0		)
Common Stock Repurchases	(110.4		)	—
Dividends and Dividend Equivalents Paid	(39.7		)	(32.8		)
Proceeds from Shares Issued under Employee Stock Purchase Plan	1.9			—
Cash Exercise of Stock Options	3.6			2.0
Other, Net	—			(0.4		)
Net Cash Provided by Financing Activities	65.5			206.4
Increase in Cash	252.5			29.3
Cash, Beginning of Year	136.8			75.1
Cash, End of Period	$	389.3		$	104.4

Page 7

Kemper Corporation Capital Metrics (Dollars and Shares in Millions, Except Per Share Amounts) (Unaudited)
	Three Months Ended
	Jun 30, 2020			Mar 31, 2020			Dec 31, 2019			Sep 30, 2019			Jun 30, 2019			Mar 31, 2019
Book Value Per Share
Numerator
Shareholders’ Equity	$	4,187.9		$	3,760.8		$	3,972.3		$	3,894.2		$	3,683.7		$	3,320.1
Less: Goodwill	(1,114.0		)	(1,114.0		)	(1,114.0		)	(1,114.0		)	(1,114.0		)	(1,111.5		)
Shareholders’ Equity Excluding Goodwill1	$	3,073.9		$	2,646.8		$	2,858.3		$	2,780.2		$	2,569.7		$	2,208.6
Shareholders’ Equity	$	4,187.9		$	3,760.8		$	3,972.3		$	3,894.2		$	3,683.7		$	3,320.1
Less: Net Unrealized Gains on Fixed Maturities	(588.6		)	(261.6		)	(434.0		)	(461.3		)	(367.8		)	(241.9		)
Shareholders’ Equity Excluding Net Unrealized Gains on Fixed Maturities1	$	3,599.3		$	3,499.2		$	3,538.3		$	3,432.9		$	3,315.9		$	3,078.2
Less: Goodwill	(1,114.0		)	(1,114.0		)	(1,114.0		)	(1,114.0		)	(1,114.0		)	(1,111.5		)
Shareholders’ Equity Excluding Net Unrealized Gains on Fixed Maturities and Goodwill1	$	2,485.3		$	2,385.2		$	2,424.3		$	2,318.9		$	2,201.9		$	1,966.7
Denominator
Common Shares Issued and Outstanding	65.282			65.365			66.666			66.642			66.564			64.931
Book Value Per Share	$	64.15		$	57.54		$	59.59		$	58.43		$	55.34		$	51.13
Book Value Per Share Excluding Goodwill1	$	47.09		$	40.49		$	42.87		$	41.72		$	38.60		$	34.01
Book Value Per Share Excluding Net Unrealized Gains on Fixed Maturities1	$	55.13		$	53.53		$	53.08		$	51.51		$	49.82		$	47.41
Book Value Per Share Excluding Net Unrealized Gains on Fixed Maturities and Goodwill1	$	38.07		$	36.49		$	36.36		$	34.80		$	33.08		$	30.29
Return on Shareholders’ Equity
Numerator
Rolling 12 Months Net Income	$	443.8		$	439.8		$	531.1		$	412.9		$	376.1		$	291.6
Denominator (5-point Average)
5-point Average Shareholders’ Equity	$	3,899.8		$	3,726.2		$	3,584.1		$	3,402.4		$	3,032.7		$	2,708.7
Rolling 12 Months Return on Average Shareholders' Equity (5-point Average)	11.4		%	11.8		%	14.8		%	12.1		%	12.4		%	10.8		%
Return on Shareholders’ Equity Excluding Goodwill1
Denominator (5-point Average)
5-point Average Shareholders’ Equity Excluding Goodwill1	$	2,785.8		$	2,612.7		$	2,470.9		$	2,293.8		$	2,082.3		$	1,916.5
Rolling 12 Months Return on Average Shareholders' Equity Excluding Goodwill (5-point Average)1	15.9		%	16.8		%	21.5		%	18.0		%	18.1		%	15.2		%
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	$	3,477.1		$	3,372.9		$	3,261.0		$	3,144.6		$	2,838.0		$	2,549.5
Rolling 12 Months Return on Average Shareholders' Equity Excluding Net Unrealized Gains on Fixed Maturities (5-point Average)1	12.8		%	13.0		%	16.3		%	13.1		%	13.3		%	11.4		%
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	$	2,363.1		$	2,259.4		$	2,147.8		$	2,036.0		$	1,887.6		$	1,757.3
Rolling 12 Months Return on Average Shareholders' Equity Excluding Net Unrealized Gains on Fixed Maturities and Goodwill (5-point Average)1	18.8		%	19.5		%	24.7		%	20.3		%	19.9		%	16.6		%
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
	Jun 30, 2020			Mar 31, 2020			Dec 31, 2019			Sep 30, 2019			Jun 30, 2019			Mar 31, 2019
Debt and Total Capitalization
Debt	$	777.7		$	778.1		$	778.4		$	778.7		$	873.3		$	908.5
Shareholders’ Equity	4,187.9			3,760.8			3,972.3			3,894.2			3,683.7			3,320.1
Total Capitalization	$	4,965.6		$	4,538.9		$	4,750.7		$	4,672.9		$	4,557.0		$	4,228.6
Ratio of Debt to Shareholders’ Equity	18.6		%	20.7		%	19.6		%	20.0		%	23.7		%	27.4		%
Ratio of Debt to Total Capitalization	15.7		%	17.1		%	16.4		%	16.7		%	19.2		%	21.5		%
Parent Company Liquidity
Kemper Holding Company Cash and Investments	$	270.5		$	199.1		$	206.8		$	169.1		$	312.7		$	118.6
Borrowings Available Under Credit Agreement	400.0			400.0			400.0			400.0			400.0			300.0
Parent Company Liquidity	$	670.5		$	599.1		$	606.8		$	569.1		$	712.7		$	418.6
Capital Returned to Shareholders
Cash Dividends Paid	19.7			20.0			18.7			16.7			16.2			16.2

Page 9

Kemper Corporation Debt Outstanding, FHLB Advances and Ratings (Dollars in Millions) (Unaudited)
	Jun 30, 2020		Mar 31, 2020		Dec 31, 2019		Sep 30, 2019		Jun 30, 2019		Mar 31, 2019
Kemper Corporation:
Term Loan due June 29, 2020	$	—	$	—	$	—	$	—	$	—	$	34.9
Term Loan due July 5, 2023	49.9		49.9		49.9		49.9		$	—	$	—
Senior Notes at Amortized Cost:
5.0% Senior Notes due September 19, 2022	279.1		279.6		279.9		280.3		280.6		281.0
4.35% Senior Notes due February 15, 2025	448.7		448.6		448.6		448.5		448.5		448.4
7.375% Subordinated Debentures due February 27, 2054 at Amortized Cost	—		—		—		—		144.2		144.2
Debt Outstanding	$	777.7	$	778.1	$	778.4	$	778.7	$	873.3	$	908.5
Federal Home Loan Bank Advances to Insurance Subsidiaries:
Reported as Policyholder Account Liabilities:
Federal Home Loan Bank of Chicago	$	454.3	$	364.2	$	243.4	$	137.6	$	155.0	$	187.7
Reported as Debt Outstanding:
Federal Home Loan Bank of Dallas	$	—	$	—	$	—	$	—	$	—	$	—
Federal Home Loan Bank of Chicago	—		$	—	$	—	$	—	$	—	$	—
	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		BBB
4.35% Senior Notes due February 15, 2025	BBB-		Baa3		BBB		BBB
Term Loan due July 5, 2023	NR		Baa3		BBB		BBB+
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																		Six Months Ended
	Jun 30, 2020			Mar 31, 2020			Dec 31, 2019			Sep 30, 2019			Jun 30, 2019			Mar 31, 2019			Jun 30, 2020			Jun 30, 2019
Revenues:
Specialty Property & Casualty Insurance:
Earned Premiums:
Specialty Automobile	$	689.8		$	753.2		$	733.1		$	719.2		$	703.7		$	669.6		$	1,443.0		$	1,373.3
Commercial Automobile	69.2			69.3			66.6			64.2			62.3			59.7			138.5			122.0
Total Specialty Property & Casualty Insurance Earned Premiums	759.0			822.5			799.7			783.4			766.0			729.3			1,581.5			1,495.3
Net Investment Income	16.9			28.8			28.3			28.8			28.9			21.5			45.7			50.4
Other Income	0.1			0.9			0.8			4.4			1.0			0.8			1.0			1.8
Total Specialty Property & Casualty Insurance Revenues	776.0			852.2			828.8			816.6			795.9			751.6			1,628.2			1,547.5
Preferred Property & Casualty Insurance:
Earned Premiums:
Preferred Automobile	99.1			114.9			117.2			119.7			117.9			115.4			214.0			233.3
Homeowners	55.6			56.8			58.7			61.5			60.8			60.3			112.4			121.1
Other Personal	8.9			9.2			9.3			9.8			9.8			9.9			18.1			19.7
Total Preferred Property & Casualty Insurance Earned Premiums	163.6			180.9			185.2			191.0			188.5			185.6			344.5			374.1
Net Investment Income	4.3			9.7			11.5			12.0			12.3			8.3			14.0			20.6
Other Income	0.1			—			—			—			—			—			0.1			—
Total Preferred Property & Casualty Insurance Revenues	168.0			190.6			196.7			203.0			200.8			193.9			358.6			394.7
Life & Health Insurance:
Earned Premiums:
Life	95.7			97.2			95.6			96.2			97.0			95.8			192.9			192.8
Accident and Health	50.8			49.4			48.5			47.6			47.9			46.9			100.2			94.8
Property	16.2			16.4			16.8			17.0			17.2			17.2			32.6			34.4
Total Life & Health Insurance Earned Premiums	162.7			163.0			160.9			160.8			162.1			159.9			325.7			322.0
Net Investment Income	44.3			51.0			52.0			49.7			53.0			51.7			95.3			104.7
Other Income	0.5			0.1			2.9			2.9			1.6			1.1			0.6			2.7
Total Life & Health Insurance Revenues	207.5			214.1			215.8			213.4			216.7			212.7			421.6			429.4
Total Segment Revenues	1,151.5			1,256.9			1,241.3			1,233.0			1,213.4			1,158.2			2,408.4			2,371.6
Income (Loss) from Change in Fair Value of Equity and Convertible Securities	71.6			(117.8		)	39.2			9.8			25.5			64.4			(46.2		)	89.9
Net Realized Gains on Sales of Investments	11.7			16.5			2.8			1.7			21.3			16.1			28.2			37.4
Impairment Losses	(7.0		)	(12.0		)	(1.7		)	(1.8		)	(6.7		)	(3.6		)	(19.0		)	(10.3		)
Other	3.1			85.4			2.1			1.1			21.9			1.2			88.5			23.1
Total Revenues	$	1,230.9		$	1,229.0		$	1,283.7		$	1,243.8		$	1,275.4		$	1,236.3		$	2,459.9		$	2,511.7

Page 11

Kemper Corporation Segment Operating Results (Dollars in Millions)  (Unaudited)
	Three Months Ended																		Six Months Ended
	Jun 30, 2020			Mar 31, 2020			Dec 31, 2019			Sep 30, 2019			Jun 30, 2019			Mar 31, 2019			Jun 30, 2020			Jun 30, 2019
Segment Operating Profit:
Specialty Property & Casualty Insurance	$	84.5		$	75.0		$	78.5		$	98.6		$	79.4		$	99.4		$	159.5		$	178.8
Preferred Property & Casualty Insurance	0.8			23.0			16.1			26.5			6.4			3.3			23.8			9.7
Life & Health Insurance	19.9			26.5			35.5			41.0			16.1			29.3			46.4			45.4
Total Segment Operating Profit	105.2			124.5			130.1			166.1			101.9			132.0			229.7			233.9
Partial Satisfaction of Judgment	—			89.4			—			—			20.1			—			89.4			20.1
Other	(4.7		)	(11.1		)	(7.3		)	(3.1		)	(12.4		)	(8.6		)	(15.8		)	(21.0		)
Corporate and Other Operating Income (Loss)	(4.7		)	78.3			(7.3		)	(3.1		)	7.7			(8.6		)	73.6			(0.9		)
Total Operating Profit	100.5			202.8			122.8			163.0			109.6			123.4			303.3			233.0
Income From:
Change in Fair Value of Equity and Convertible Securities	71.6			(117.8		)	39.2			9.8			25.5			64.4			(46.2		)	89.9
Net Realized Gains on Sales of Investments	11.7			16.5			2.8			1.7			21.3			16.1			28.2			37.4
Impairment Losses	(7.0		)	(12.0		)	(1.7		)	(1.8		)	(6.7		)	(3.6		)	(19.0		)	(10.3		)
Acquisition Related Transaction Integration and Other Costs	(17.1		)	(11.8		)	(6.2		)	(5.4		)	(1.2		)	(5.6		)	(28.9		)	(6.8		)
Loss from Early Extinguishment of Debt	—			—			—			(5.8		)	—			—			—			—
Income before Income Taxes	$	159.7		$	77.7		$	156.9		$	161.5		$	148.5		$	194.7		$	237.4		$	343.2
Segment Net Operating Income:
Specialty Property & Casualty Insurance	$	67.5		$	60.1		$	62.3		$	78.5		$	62.7		$	79.6		$	127.6		$	142.3
Preferred Property & Casualty Insurance	0.9			18.4			12.8			21.1			5.2			2.8			19.3			8.0
Life & Health Insurance	16.1			22.3			28.9			33.4			13.3			23.1			38.4			36.4
Total Segment Net Operating Income	84.5			100.8			104.0			133.0			81.2			105.5			185.3			186.7
Corporate and Other Net Operating Income (Loss) From:
Partial Satisfaction of Legal Judgment	—			70.6			—			—			15.9			—			70.6			15.9
Other	(5.3		)	(8.5		)	(6.1		)	(3.0		)	(5.6		)	(6.6		)	(13.8		)	(12.2		)
Corporate and Other Net Operating Income (Loss)	(5.3		)	62.1			(6.1		)	(3.0		)	10.3			(6.6		)	56.8			3.7
Adjusted Consolidated Net Operating Income	79.2			162.9			97.9			130.0			91.5			98.9			242.1			190.4
Net Income (Loss) From:
Change in Fair Value of Equity and Convertible Securities	56.6			(93.1		)	30.9			7.8			20.1			50.9			(36.5		)	71.0
Net Realized Gains on Sales of Investments	9.3			13.0			2.2			1.4			16.8			12.7			22.3			29.5
Impairment Losses	(5.5		)	(9.5		)	(1.3		)	(1.5		)	(5.3		)	(2.8		)	(15.0		)	(8.1		)
Acquisition Related Transaction, Integration and Other Costs	(13.5		)	(9.3		)	(5.0		)	(4.1		)	(1.0		)	(4.4		)	(22.8		)	(5.4		)
Loss from Early Extinguishment of Debt	—			—			—			(4.6		)	—			—			—			—
Net Income	$	126.1		$	64.0		$	124.7		$	129.0		$	122.1		$	155.3		$	190.1		$	277.4

Page 12

Kemper Corporation Catastrophe Frequency and Severity (Dollars in Millions) (Unaudited)
	Six Months Ended June 30, 2020
	Specialty Property & Casualty Insurance Segment				Preferred Property & Casualty Insurance Segment			Life & Health Insurance Segment			Consolidated
	Number of Events		Losses and LAE		Number of Events	Losses and LAE		Number of Events	Losses and LAE		Number of Events	Losses and LAE
Range of Losses and LAE Per Event:
Below $5	$	26	$	4.7	27	$	25.4	7	$	4.0	27	$	27.1
$5 - $10	—		—		—	—		—	—		1	7.0
$10 - $15	—		—		—	—		—	—		—	—
$15 - $20	—		—		—	—		—	—		—	—
$20 - $25	—		—		—	—		—	—		—	—
Greater Than $25	—		—		—	—		—	—		—	—
Total	26		$	4.7	27	$	25.4	7	$	4.0	28	$	34.1
	Six Months Ended June 30, 2019
	Specialty Property & Casualty Insurance Segment				Preferred Property & Casualty Insurance Segment			Life & Health Insurance Segment			Consolidated
	Number of Events		Losses and LAE		Number of Events	Losses and LAE		Number of Events	Losses and LAE		Number of Events	Losses and LAE
Range of Losses and LAE Per Event:
Below $5	$	21	$	5.0	25	$	21.4	17	$	2.1	24	$	16.7
$5 - $10	—		—		1	5.3		—	—		3	16.1
$10 - $15	—		—		1	12.5		—	—		1	13.5
$15 - $20	—		—		—	—		—	—		—	—
$20 - $25	—		—		—	—		—	—		—	—
Greater Than $25	—		—		—	—		—	—		—	—
Total	21		$	5.0	27	$	39.2	17	$	2.1	28	$	46.3

Page 13

Kemper Corporation Specialty Property & Casualty Insurance Segment Results of Operations and Selected Financial Information (Dollars in Millions) (Unaudited)
	Three Months Ended																		Six Months Ended
	Jun 30, 2020			Mar 31, 2020			Dec 31, 2019			Sep 30, 2019			Jun 30, 2019			Mar 31, 2019			Jun 30, 2020			Jun 30, 2019
Results of Operations
Net Premiums Written	$	780.9		$	911.2		$	782.5		$	815.0		$	804.7		$	809.1		$	1,692.1		$	1,613.8
Earned Premiums	$	759.0		$	822.5		$	799.7		$	783.4		$	766.0		$	729.3		$	1,581.5		$	1,495.3
Net Investment Income	16.9			28.8			28.3			28.8			28.9			21.5			45.7			50.4
Other Income	0.1			0.9			0.8			4.4			1.0			0.8			1.0			1.8
Total Revenues	776.0			852.2			828.8			816.6			795.9			751.6			1,628.2			1,547.5
Incurred Losses and LAE related to:
Current Year:
Non-catastrophe Losses and LAE	515.8			619.8			599.5			579.4			579.2			544.3			1,135.6			1,123.5
Catastrophe Losses and LAE	4.5			0.2			3.8			2.3			4.4			0.6			4.7			5.0
Prior Years:
Non-catastrophe Losses and LAE	9.6			5.3			(4.1		)	(4.1		)	(8.6		)	(18.3		)	14.9			(26.9		)
Catastrophe Losses and LAE	—			0.2			0.2			0.2			(0.1		)	0.2			0.2			0.1
Total Incurred Losses and LAE	529.9			625.5			599.4			577.8			574.9			526.8			1,155.4			1,101.7
Insurance Expenses	161.2			152.1			150.7			139.2			140.9			124.8			313.3			265.7
Other Expenses	0.4			(0.4		)	0.2			1.0			0.7			0.6			—			1.3
Operating Profit	84.5			75.0			78.5			98.6			79.4			99.4			159.5			178.8
Income Tax Expense	(17.0		)	(14.9		)	(16.2		)	(20.1		)	(16.7		)	(19.8		)	(31.9		)	(36.5		)
Segment Net Operating Income	$	67.5		$	60.1		$	62.3		$	78.5		$	62.7		$	79.6		$	127.6		$	142.3
Ratios Based On Earned Premiums
Current Year Non-catastrophe Losses and LAE Ratio	67.9		%	75.4		%	75.0		%	74.0		%	75.6		%	74.6		%	71.9		%	75.2		%
Current Year Catastrophe Losses and LAE Ratio	0.6			—			0.5			0.3			0.6			0.1			0.3			0.3
Prior Years Non-catastrophe Losses and LAE Ratio	1.3			0.6			(0.5		)	(0.5		)	(1.1		)	(2.5		)	0.9			(1.8		)
Prior Years Catastrophe Losses and LAE Ratio	—			—			—			—			—			—			—			—
Total Incurred Loss and LAE Ratio	69.8			76.0			75.0			73.8			75.1			72.2			73.1			73.7
Insurance Expense Ratio	21.2			18.5			18.8			17.8			18.4			17.1			19.8			17.8
Combined Ratio	91.0		%	94.5		%	93.8		%	91.6		%	93.5		%	89.3		%	92.9		%	91.5		%
Underlying Combined Ratio1
Current Year Non-catastrophe Losses and LAE Ratio	67.9		%	75.4		%	75.0		%	74.0		%	75.6		%	74.6		%	71.9		%	75.2		%
Insurance Expense Ratio	21.2			18.5			18.8			17.8			18.4			17.1			19.8			17.8
Underlying Combined Ratio	89.1		%	93.9		%	93.8		%	91.8		%	94.0		%	91.7		%	91.7		%	93.0		%
Non-GAAP Measure Reconciliation
Combined Ratio as Reported	91.0		%	94.5		%	93.8		%	91.6		%	93.5		%	89.3		%	92.9		%	91.5		%
Less:
Current Year Catastrophe Losses and LAE Ratio	0.6			—			0.5			0.3			0.6			0.1			0.3			0.3
Prior Years Non-catastrophe Losses and LAE Ratio	1.3			0.6			(0.5		)	(0.5		)	(1.1		)	(2.5		)	0.9			(1.8		)
Prior Years Catastrophe Losses and LAE Ratio	—			—			—			—			—			—			—			—
Underlying Combined Ratio	89.1		%	93.9		%	93.8		%	91.8		%	94.0		%	91.7		%	91.7		%	93.0		%
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 Specialty Property & Casualty Insurance Segment Results of Operations and Selected Financial Information (continued) (Dollars in Millions) (Unaudited)
	Jun 30, 2020		Mar 31, 2020		Dec 31, 2019		Sep 30, 2019		Jun 30, 2019		Mar 31, 2019
Insurance Reserves:
Non-Standard Automobile	$	1,252.6	$	1,326.3	$	1,321.9	$	1,278.7	$	1,229.7	$	1,181.2
Commercial Automobile	221.0		215.1		229.1		223.9		218.9		218.4
Insurance Reserves	$	1,473.6	$	1,541.4	$	1,551.0	$	1,502.6	$	1,448.6	$	1,399.6
Insurance Reserves:
Loss and Allocated LAE Reserves:
Case and Allocated LAE	$	667.9	$	716.0	$	730.0	$	760.2	$	721.6	$	696.1
Incurred but Not Reported	660.8		679.1		672.2		598.8		587.8		565.6
Total Loss Reserves	1,328.7		1,395.1		1,402.2		1,359.0		1,309.4		1,261.7
Unallocated LAE Reserves	144.9		146.3		148.8		143.6		139.2		137.9
Insurance Reserves	$	1,473.6	$	1,541.4	$	1,551.0	$	1,502.6	$	1,448.6	$	1,399.6

Page 15

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																		Six Months Ended
	Jun 30, 2020			Mar 31, 2020			Dec 31, 2019			Sep 30, 2019			Jun 30, 2019			Mar 31, 2019			Jun 30, 2020			Jun 30, 2019
Results of Operations
Net Premiums Written	$	700.5		$	830.3		$	714.9		$	749.5		$	734.5		$	742.2		$	1,530.8		$	1,476.7
Earned Premiums	$	689.8		$	753.2		$	733.1		$	719.2		$	703.7		$	669.6		$	1,443.0		$	1,373.3
Net Investment Income	15.2			24.8			24.5			24.9			24.6			18.4			40.0			43.0
Other Income	0.1			0.8			0.8			4.3			0.9			0.8			0.9			1.7
Total Revenues	705.1			778.8			758.4			748.4			729.2			688.8			1,483.9			1,418.0
Incurred Losses and LAE related to:
Current Year:
Non-catastrophe Losses and LAE	472.4			576.0			557.5			538.2			537.0			498.8			1,048.4			1,035.8
Catastrophe Losses and LAE	4.2			0.2			3.3			2.0			4.1			0.5			4.4			4.6
Prior Years:
Non-catastrophe Losses and LAE	11.2			17.8			(4.4		)	(1.8		)	(3.7		)	(14.4		)	29.0			(18.1		)
Catastrophe Losses and LAE	0.1			0.2			0.2			0.2			—			0.1			0.3			0.1
Total Incurred Losses and LAE	487.9			594.2			556.6			538.6			537.4			485.0			1,082.1			1,022.4
Insurance Expenses	146.7			139.2			138.1			128.4			128.9			114.7			285.9			243.6
Other Expenses	0.4			(0.4		)	0.2			1.0			0.7			0.6			—			1.3
Operating Profit	70.1			45.8			63.5			80.4			62.2			88.5			115.9			150.7
Income Tax Expense	(14.2		)	(8.8		)	(10.5		)	(18.4		)	(13.0		)	(17.8		)	(23.0		)	(30.8		)
Total Product Line Net Operating Income	$	55.9		$	37.0		$	53.0		$	62.0		$	49.2		$	70.7		$	92.9		$	119.9
Ratios Based On Earned Premiums
Current Year Non-catastrophe Losses and LAE Ratio	68.5		%	76.5		%	76.0		%	74.9		%	76.3		%	74.5		%	72.7		%	75.4		%
Current Year Catastrophe Losses and LAE Ratio	0.6			—			0.5			0.3			0.6			0.1			0.3			0.3
Prior Years Non-catastrophe Losses and LAE Ratio	1.6			2.4			(0.6		)	(0.3		)	(0.5		)	(2.2		)	2.0			(1.3		)
Prior Years Catastrophe Losses and LAE Ratio	—			—			—			—			—			—			—			—
Total Incurred Loss and LAE Ratio	70.7			78.9			75.9			74.9			76.4			72.4			75.0			74.4
Insurance Expense Ratio	21.3			18.5			18.8			17.9			18.3			17.1			19.8			17.7
Combined Ratio	92.0		%	97.4		%	94.7		%	92.8		%	94.7		%	89.5		%	94.8		%	92.1		%
Underlying Combined Ratio1
Current Year Non-catastrophe Losses and LAE Ratio	68.5		%	76.5		%	76.0		%	74.9		%	76.3		%	74.5		%	72.7		%	75.4		%
Insurance Expense Ratio	21.3			18.5			18.8			17.9			18.3			17.1			19.8			17.7
Underlying Combined Ratio	89.8		%	95.0		%	94.8		%	92.8		%	94.6		%	91.6		%	92.5		%	93.1		%
Non-GAAP Measure Reconciliation
Combined Ratio	92.0		%	97.4		%	94.7		%	92.8		%	94.7		%	89.5		%	94.8		%	92.1		%
Less:
Current Year Catastrophe Losses and LAE Ratio	0.6			—			0.5			0.3			0.6			0.1			0.3			0.3
Prior Years Non-catastrophe Losses and LAE Ratio	1.6			2.4			(0.6		)	(0.3		)	(0.5		)	(2.2		)	2.0			(1.3		)
Prior Years Catastrophe Losses and LAE Ratio	—			—			—			—			—			—			—			—
Underlying Combined Ratio	89.8		%	95.0		%	94.8		%	92.8		%	94.6		%	91.6		%	92.5		%	93.1		%
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 16

Kemper Corporation Specialty Property & Casualty Insurance Segment Commercial Automobile Insurance - Results of Operations and Selected Financial Information (Dollars in Millions) (Unaudited)
	Three Months Ended																		Six Months Ended
	Jun 30, 2020			Mar 31, 2020			Dec 31, 2019			Sep 30, 2019			Jun 30, 2019			Mar 31, 2019			Jun 30, 2020			Jun 30, 2019
Results of Operations
Net Premiums Written	$	80.4		$	80.9		$	67.6		$	65.5		$	70.2		$	66.9		$	161.3		$	137.1
Earned Premiums	$	69.2		$	69.3		$	66.6		$	64.2		$	62.3		$	59.7		$	138.5		$	122.0
Net Investment Income	1.7			4.0			3.8			3.9			4.3			3.1			5.7			7.4
Other Income	—			0.1			—			0.1			0.1			—			0.1			0.1
Total Revenues	70.9			73.4			70.4			68.2			66.7			62.8			144.3			129.5
Incurred Losses and LAE related to:
Current Year:
Non-catastrophe Losses and LAE	43.4			43.8			42.0			41.2			42.2			45.5			87.2			87.7
Catastrophe Losses and LAE	0.3			—			0.5			0.3			0.3			0.1			0.3			0.4
Prior Years:
Non-catastrophe Losses and LAE	(1.6		)	(12.5		)	0.3			(2.3		)	(4.9		)	(3.9		)	(14.1		)	(8.8		)
Catastrophe Losses and LAE	(0.1		)	—			—			—			(0.1		)	0.1			(0.1		)	—
Total Incurred Losses and LAE	42.0			31.3			42.8			39.2			37.5			41.8			73.3			79.3
Insurance Expenses	14.5			12.9			12.6			10.8			12.0			10.1			27.4			22.1
Operating Profit	14.4			29.2			15.0			18.2			17.2			10.9			43.6			28.1
Income Tax Expense	(2.8		)	(6.1		)	(5.7		)	(1.7		)	(3.7		)	(2.0		)	(8.9		)	(5.7		)
Total Product Line Net Operating Income	$	11.6		$	23.1		$	9.3		$	16.5		$	13.5		$	8.9		$	34.7		$	22.4
Ratios Based On Earned Premiums
Current Year Non-catastrophe Losses and LAE Ratio	62.7		%	63.2		%	63.0		%	64.2		%	67.7		%	76.1		%	63.0		%	71.9		%
Current Year Catastrophe Losses and LAE Ratio	0.4			—			0.8			0.5			0.5			0.2			0.2			0.3
Prior Years Non-catastrophe Losses and LAE Ratio	(2.3		)	(18.0		)	0.5			(3.6		)	(7.9		)	(6.5		)	(10.2		)	(7.2		)
Prior Years Catastrophe Losses and LAE Ratio	(0.1		)	—			—			—			(0.1		)	0.2			(0.1		)	—
Total Incurred Loss and LAE Ratio	60.7			45.2			64.3			61.1			60.2			70.0			52.9			65.0
Insurance Expense Ratio	21.0			18.6			18.9			16.8			19.3			16.9			19.8			18.1
Combined Ratio	81.7		%	63.8		%	83.2		%	77.9		%	79.5		%	86.9		%	72.7		%	83.1		%
Underlying Combined Ratio1
Current Year Non-catastrophe Losses and LAE Ratio	62.7		%	63.2		%	63.0		%	64.2		%	67.7		%	76.1		%	63.0		%	71.9		%
Insurance Expense Ratio	21.0			18.6			18.9			16.8			19.3			16.9			19.8			18.1
Underlying Combined Ratio	83.7		%	81.8		%	81.9		%	81.0		%	87.0		%	93.0		%	82.8		%	90.0		%
Non-GAAP Measure Reconciliation
Combined Ratio	81.7		%	63.8		%	83.2		%	77.9		%	79.5		%	86.9		%	72.7		%	83.1		%
Less:
Current Year Catastrophe Losses and LAE Ratio	0.4			—			0.8			0.5			0.5			0.2			0.2			0.3
Prior Years Non-catastrophe Losses and LAE Ratio	(2.3		)	(18.0		)	0.5			(3.6		)	(7.9		)	(6.5		)	(10.2		)	(7.2		)
Prior Years Catastrophe Losses and LAE Ratio	(0.1		)	—			—			—			(0.1		)	0.2			(0.1		)	—
Underlying Combined Ratio	83.7		%	81.8		%	81.9		%	81.0		%	87.0		%	93.0		%	82.8		%	90.0		%
1 Underlying Combined Ratio is a non-GAAP measure, which is computed as the difference between three operating ratios: the combined ratio, the effect of catastrophes (excluding development of prior-year catastrophes) on the combined ratio and the effect of prior-year reserve development at the reporting date (including development on prior-year catastrophes) on the combined ratio.

Page 17

Kemper Corporation Preferred Property & Casualty Insurance Segment Results of Operations and Selected Financial Information (Dollars in Millions) (Unaudited)
	Three Months Ended																		Six Months Ended
	Jun 30, 2020			Mar 31, 2020			Dec 31, 2019			Sep 30, 2019			Jun 30, 2019			Mar 31, 2019			Jun 30, 2020			Jun 30, 2019
Results of Operations
Net Premiums Written	$	161.5		$	164.1		$	172.6		$	189.6		$	197.5		$	179.6		$	325.6		$	377.1
Earned Premiums	$	163.6		$	180.9		$	185.2		$	191.0		$	188.5		$	185.6		$	344.5		$	374.1
Net Investment Income	4.3			9.7			11.5			12.0			$	12.3		8.3			14.0			20.6
Other Income	0.1			—			—			—			—			—			0.1			—
Total Revenues	168.0			190.6			196.7			203.0			200.8			193.9			358.6			394.7
Incurred Losses and LAE related to:
Current Year:
Non-catastrophe Losses and LAE	82.5			108.5			120.2			121.7			119.1			120.8			191.0			239.9
Catastrophe Losses and LAE	20.6			4.8			11.9			11.9			22.6			16.6			25.4			39.2
Prior Years:
Non-catastrophe Losses and LAE	8.2			(3.3		)	(7.1		)	(1.1		)	(4.3		)	(5.1		)	4.9			(9.4		)
Catastrophe Losses and LAE	0.4			(1.1		)	(3.1		)	(15.4		)	(0.9		)	1.0			(0.7		)	0.1
Total Incurred Losses and LAE	111.7			108.9			121.9			117.1			136.5			133.3			220.6			269.8
Insurance Expenses	55.5			58.7			58.7			59.4			57.9			57.3			114.2			115.2
Operating Profit (Loss)	0.8			23.0			16.1			26.5			6.4			3.3			23.8			9.7
Income Tax Benefit (Expense)	0.1			(4.6		)	(3.3		)	(5.4		)	(1.2		)	(0.5		)	(4.5		)	(1.7		)
Segment Net Operating Income (Loss)	$	0.9		$	18.4		$	12.8		$	21.1		$	5.2		$	2.8		$	19.3		$	8.0
Ratios Based On Earned Premiums
Current Year Non-catastrophe Losses and LAE Ratio	50.5		%	59.9		%	64.9		%	63.8		%	63.2		%	65.1		%	55.4		%	64.1		%
Current Year Catastrophe Losses and LAE Ratio	12.6			2.7			6.4			6.2			12.0			8.9			7.4			10.5
Prior Years Non-catastrophe Losses and LAE Ratio	5.0			(1.8		)	(3.8		)	(0.6		)	(2.3		)	(2.7		)	1.4			(2.5		)
Prior Years Catastrophe Losses and LAE Ratio	0.2			(0.6		)	(1.7		)	(8.1		)	(0.5		)	0.5			(0.2		)	—
Total Incurred Loss and LAE Ratio	68.3			60.2			65.8			61.3			72.4			71.8			64.0			72.1
Insurance Expense Ratio	33.9			32.4			31.7			31.1			30.7			30.9			33.1			30.8
Combined Ratio	102.2		%	92.6		%	97.5		%	92.4		%	103.1		%	102.7		%	97.1		%	102.9		%
Underlying Combined Ratio1
Current Year Non-catastrophe Losses and LAE Ratio	50.5		%	59.9		%	64.9		%	63.8		%	63.2		%	65.1		%	55.4		%	64.1		%
Insurance Expense Ratio	33.9			32.4			31.7			31.1			30.7			30.9			33.1			30.8
Underlying Combined Ratio	84.4		%	92.3		%	96.6		%	94.9		%	93.9		%	96.0		%	88.5		%	94.9		%
Non-GAAP Measure Reconciliation
Combined Ratio as Reported	102.2		%	92.6		%	97.5		%	92.4		%	103.1		%	102.7		%	97.1		%	102.9		%
Less:
Current Year Catastrophe Losses and LAE Ratio	12.6			2.7			6.4			6.2			12.0			8.9			7.4			10.5
Prior Years Non-catastrophe Losses and LAE Ratio	5.0			(1.8		)	(3.8		)	(0.6		)	(2.3		)	(2.7		)	1.4			(2.5		)
Prior Years Catastrophe Losses and LAE Ratio	0.2			(0.6		)	(1.7		)	(8.1		)	(0.5		)	0.5			(0.2		)	—
Underlying Combined Ratio	84.4		%	92.3		%	96.6		%	94.9		%	93.9		%	96.0		%	88.5		%	94.9		%
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 18

Kemper Corporation Preferred Property & Casualty Insurance Segment Results of Operations and Selected Financial Information (continued) (Dollars in Millions) (Unaudited)
	Jun 30, 2020		Mar 31, 2020		Dec 31, 2019		Sep 30, 2019		Jun 30, 2019		Mar 31, 2019
Insurance Reserves:
Preferred Automobile	$	252.8	$	254.8	$	262.3	$	267.3	$	264.5	$	268.0
Homeowners	99.5		90.8		95.3		108.8		131.6		133.5
Other Personal	25.7		28.8		30.9		32.2		34.0		34.3
Insurance Reserves	$	378.0	$	374.4	$	388.5	$	408.3	$	430.1	$	435.8
Insurance Reserves:
Loss and Allocated LAE Reserves:
Case and Allocated LAE	$	230.7	$	231.1	$	241.3	$	277.8	$	278.5	$	290.2
Incurred but Not Reported	119.6		115.1		118.8		100.4		120.2		113.0
Total Loss Reserves	350.3		346.2		360.1		378.2		398.7		403.2
Unallocated LAE Reserves	27.7		28.2		28.4		30.1		31.4		32.6
Insurance Reserves	$	378.0	$	374.4	$	388.5	$	408.3	$	430.1	$	435.8

Page 19

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																		Six Months Ended
	Jun 30, 2020			Mar 31, 2020			Dec 31, 2019			Sep 30, 2019			Jun 30, 2019			Mar 31, 2019			Jun 30, 2020			Jun 30, 2019
Results of Operations
Net Premiums Written	$	95.6		$	105.9		$	111.5		$	117.5		$	123.4		$	116.5		$	201.5		$	239.9
Earned Premiums	$	99.1		$	114.9		$	117.2		$	119.7		$	117.9		$	115.4		$	214.0		$	233.3
Net Investment Income	2.5			5.8			5.4			5.6			5.8			3.9			8.3			9.7
Other Income	0.1			—			—			—			—			—			0.1			—
Total Revenues	101.7			120.7			122.6			125.3			123.7			119.3			222.4			243.0
Incurred Losses and LAE related to:
Current Year:
Non-catastrophe Losses and LAE	53.8			75.9			86.2			83.2			82.9			80.2			129.7			163.1
Catastrophe Losses and LAE	2.0			0.2			1.5			2.1			1.7			2.5			2.2			4.2
Prior Years:
Non-catastrophe Losses and LAE	9.7			2.2			(2.8		)	(0.5		)	(3.7		)	(1.2		)	11.9			(4.9		)
Catastrophe Losses and LAE	(0.3		)	(0.1		)	0.2			(0.1		)	—			(0.1		)	(0.4		)	(0.1		)
Total Incurred Losses and LAE	65.2			78.2			85.1			84.7			80.9			81.4			143.4			162.3
Insurance Expenses	34.0			36.1			36.3			36.8			35.5			35.0			70.1			70.5
Operating Profit	2.5			6.4			1.2			3.8			7.3			2.9			8.9			10.2
Income Tax Expense	(0.4		)	(1.2		)	(0.2		)	(0.7		)	(1.5		)	(0.5		)	(1.6		)	(2.0		)
Total Product Line Net Operating Income (Loss)	$	2.1		$	5.2		$	1.0		$	3.1		$	5.8		$	2.4		$	7.3		$	8.2
Ratios Based On Earned Premiums
Current Year Non-catastrophe Losses and LAE Ratio	54.3		%	66.1		%	73.5		%	69.5		%	70.3		%	69.4		%	60.6		%	69.9		%
Current Year Catastrophe Losses and LAE Ratio	2.0			0.2			1.3			1.8			1.4			2.2			1.0			1.8
Prior Years Non-catastrophe Losses and LAE Ratio	9.8			1.9			(2.4		)	(0.4		)	(3.1		)	(1.0		)	5.6			(2.1		)
Prior Years Catastrophe Losses and LAE Ratio	(0.3		)	(0.1		)	0.2			(0.1		)	—			(0.1		)	(0.2		)	—
Total Incurred Loss and LAE Ratio	65.8			68.1			72.6			70.8			68.6			70.5			67.0			69.6
Insurance Expense Ratio	34.3			31.4			31.0			30.7			30.1			30.3			32.8			30.2
Combined Ratio	100.1		%	99.5		%	103.6		%	101.5		%	98.7		%	100.8		%	99.8		%	99.8		%
Underlying Combined Ratio1
Current Year Non-catastrophe Losses and LAE Ratio	54.3		%	66.1		%	73.5		%	69.5		%	70.3		%	69.4		%	60.6		%	69.9		%
Insurance Expense Ratio	34.3			31.4			31.0			30.7			30.1			30.3			32.8			30.2
Underlying Combined Ratio	88.6		%	97.5		%	104.5		%	100.2		%	100.4		%	99.7		%	93.4		%	100.1		%
Non-GAAP Measure Reconciliation
Combined Ratio	100.1		%	99.5		%	103.6		%	101.5		%	98.7		%	100.8		%	99.8		%	99.8		%
Less:
Current Year Catastrophe Losses and LAE Ratio	2.0			0.2			1.3			1.8			1.4			2.2			1.0			1.8
Prior Years Non-catastrophe Losses and LAE Ratio	9.8			1.9			(2.4		)	(0.4		)	(3.1		)	(1.0		)	5.6			(2.1		)
Prior Years Catastrophe Losses and LAE Ratio	(0.3		)	(0.1		)	0.2			(0.1		)	—			(0.1		)	(0.2		)	—
Underlying Combined Ratio	88.6		%	97.5		%	104.5		%	100.2		%	100.4		%	99.7		%	93.4		%	100.1		%
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 20

Kemper Corporation Preferred Property & Casualty Insurance Segment Homeowners and Other Personal Insurance - Results of Operations and Selected Financial Information (Dollars in Millions) (Unaudited)
	Three Months Ended																		Six Months Ended
	Jun 30, 2020			Mar 31, 2020			Dec 31, 2019			Sep 30, 2019			Jun 30, 2019			Mar 31, 2019			Jun 30, 2020			Jun 30, 2019
Results of Operations
Net Premiums Written	$	65.9		$	58.2		$	61.1		$	72.1		$	74.1		$	63.1		$	124.1		$	137.2
Earned Premiums	$	64.5		$	66.0		$	68.0		$	71.3		$	70.6		$	70.2		$	130.5		$	140.8
Net Investment Income	1.8			3.9			6.1			6.4			6.5			4.4			5.7			10.9
Total Revenues	66.3			69.9			74.1			77.7			77.1			74.6			136.2			151.7
Incurred Losses and LAE related to:
Current Year:
Non-catastrophe Losses and LAE	28.7			32.6			34.0			38.5			36.2			40.6			61.3			76.8
Catastrophe Losses and LAE	18.6			4.6			10.4			9.8			20.9			14.1			23.2			35.0
Prior Years:
Non-catastrophe Losses and LAE	(1.5		)	(5.5		)	(4.3		)	(0.6		)	(0.6		)	(3.9		)	(7.0		)	(4.5		)
Catastrophe Losses and LAE	0.7			(1.0		)	(3.3		)	(15.3		)	(0.9		)	1.1			(0.3		)	0.2
Total Incurred Losses and LAE	46.5			30.7			36.8			32.4			55.6			51.9			77.2			107.5
Insurance Expenses	21.5			22.6			22.4			22.6			22.4			22.3			44.1			44.7
Operating Profit (Loss)	(1.7		)	16.6			14.9			22.7			(0.9		)	0.4			14.9			(0.5		)
Income Tax Benefit (Expense)	0.5			(3.4		)	(3.1		)	(4.7		)	0.3			—			(2.9		)	0.3
Total Product Line Net Operating Income (Loss)	$	(1.2	)	$	13.2		$	11.8		$	18.0		$	(0.6	)	$	0.4		$	12.0		$	(0.2	)
Ratios Based On Earned Premiums
Current Year Non-catastrophe Losses and LAE Ratio	44.5		%	49.3		%	50.0		%	54.0		%	51.3		%	57.8		%	47.0		%	54.5		%
Current Year Catastrophe Losses and LAE Ratio	28.8			7.0			15.3			13.7			29.6			20.1			17.8			24.9
Prior Years Non-catastrophe Losses and LAE Ratio	(2.3		)	(8.3		)	(6.3		)	(0.8		)	(0.8		)	(5.6		)	(5.4		)	(3.2		)
Prior Years Catastrophe Losses and LAE Ratio	1.1			(1.5		)	(4.9		)	(21.5		)	(1.3		)	1.6			(0.2		)	0.1
Total Incurred Loss and LAE Ratio	72.1			46.5			54.1			45.4			78.8			73.9			59.2			76.3
Insurance Expense Ratio	33.3			34.2			32.9			31.7			31.7			31.8			33.8			31.7
Combined Ratio	105.4		%	80.7		%	87.0		%	77.1		%	110.5		%	105.7		%	93.0		%	108.0		%
Underlying Combined Ratio1
Current Year Non-catastrophe Losses and LAE Ratio	44.5		%	49.3		%	50.0		%	54.0		%	51.3		%	57.8		%	47.0		%	54.5		%
Insurance Expense Ratio	33.3			34.2			32.9			31.7			31.7			31.8			33.8			31.7
Underlying Combined Ratio	77.8		%	83.5		%	82.9		%	85.7		%	83.0		%	89.6		%	80.8		%	86.2		%
Non-GAAP Measure Reconciliation
Combined Ratio	105.4		%	80.7		%	87.0		%	77.1		%	110.5		%	105.7		%	93.0		%	108.0		%
Less:
Current Year Catastrophe Losses and LAE Ratio	28.8			7.0			15.3			13.7			29.6			20.1			17.8			24.9
Prior Years Non-catastrophe Losses and LAE Ratio	(2.3		)	(8.3		)	(6.3		)	(0.8		)	(0.8		)	(5.6		)	(5.4		)	(3.2		)
Prior Years Catastrophe Losses and LAE Ratio	1.1			(1.5		)	(4.9		)	(21.5		)	(1.3		)	1.6			(0.2		)	0.1
Underlying Combined Ratio	77.8		%	83.5		%	82.9		%	85.7		%	83.0		%	89.6		%	80.8		%	86.2		%
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 21

Kemper Corporation Preferred Property & Casualty Insurance Segment Homeowners Insurance - Results of Operations and Selected Financial Information (Dollars in Millions) (Unaudited)
	Three Months Ended																		Six Months Ended
	Jun 30, 2020			Mar 31, 2020			Dec 31, 2019			Sep 30, 2019			Jun 30, 2019			Mar 31, 2019			Jun 30, 2020			Jun 30, 2019
Results of Operations
Net Premiums Written	$	57.2		$	49.9		$	52.5		$	62.3		$	64.2		$	54.1		$	107.1		$	118.3
Earned Premiums	$	55.6		$	56.8		$	58.7		$	61.5		$	60.8		$	60.3		$	112.4		$	121.1
Net Investment Income	1.6			3.6			5.2			5.5			5.6			3.8			5.2			9.4
Total Revenues	57.2			60.4			63.9			67.0			66.4			64.1			117.6			130.5
Incurred Losses and LAE related to:
Current Year:
Non-catastrophe Losses and LAE	25.4			28.7			30.0			34.2			31.6			35.8			54.1			67.4
Catastrophe Losses and LAE	18.2			4.5			10.3			9.3			20.6			13.8			22.7			34.4
Prior Years:
Non-catastrophe Losses and LAE	(0.8		)	(4.3		)	(2.7		)	0.2			0.9			(1.1		)	(5.1		)	(0.2		)
Catastrophe Losses and LAE	0.6			(0.7		)	(3.4		)	(13.6		)	(1.0		)	1.0			(0.1		)	—
Total Incurred Losses and LAE	43.4			28.2			34.2			30.1			52.1			49.5			71.6			101.6
Insurance Expenses	18.6			19.5			19.6			19.8			19.7			19.6			38.1			39.3
Operating Profit (Loss)	(4.8		)	12.7			10.1			17.1			(5.4		)	(5.0		)	7.9			(10.4		)
Income Tax Benefit (Expense)	1.1			(2.6		)	(2.1		)	(3.5		)	1.2			1.1			(1.5		)	2.3
Total Product Line Net Operating Income (Loss)	$	(3.7	)	$	10.1		$	8.0		$	13.6		$	(4.2	)	$	(3.9	)	$	6.4		$	(8.1	)
Ratios Based On Earned Premiums
Current Year Non-catastrophe Losses and LAE Ratio	45.7		%	50.5		%	51.2		%	55.6		%	51.9		%	59.3		%	48.1		%	55.7		%
Current Year Catastrophe Losses and LAE Ratio	32.7			7.9			17.5			15.1			33.9			22.9			20.2			28.4
Prior Years Non-catastrophe Losses and LAE Ratio	(1.4		)	(7.6		)	(4.6		)	0.3			1.5			(1.8		)	(4.5		)	(0.2		)
Prior Years Catastrophe Losses and LAE Ratio	1.1			(1.2		)	(5.8		)	(22.1		)	(1.6		)	1.7			(0.1		)	—
Total Incurred Loss and LAE Ratio	78.1			49.6			58.3			48.9			85.7			82.1			63.7			83.9
Insurance Expense Ratio	33.5			34.3			33.4			32.2			32.4			32.5			33.9			32.5
Combined Ratio	111.6		%	83.9		%	91.7		%	81.1		%	118.1		%	114.6		%	97.6		%	116.4		%
Underlying Combined Ratio1
Current Year Non-catastrophe Losses and LAE Ratio	45.7		%	50.5		%	51.2		%	55.6		%	51.9		%	59.3		%	48.1		%	55.7		%
Insurance Expense Ratio	33.5			34.3			33.4			32.2			32.4			32.5			33.9			32.5
Underlying Combined Ratio	79.2		%	84.8		%	84.6		%	87.8		%	84.3		%	91.8		%	82.0		%	88.2		%
Non-GAAP Measure Reconciliation
Combined Ratio	111.6		%	83.9		%	91.7		%	81.1		%	118.1		%	114.6		%	97.6		%	116.4		%
Less:
Current Year Catastrophe Losses and LAE Ratio	32.7			7.9			17.5			15.1			33.9			22.9			20.2			28.4
Prior Years Non-catastrophe Losses and LAE Ratio	(1.4		)	(7.6		)	(4.6		)	0.3			1.5			(1.8		)	(4.5		)	(0.2		)
Prior Years Catastrophe Losses and LAE Ratio	1.1			(1.2		)	(5.8		)	(22.1		)	(1.6		)	1.7			(0.1		)	—
Underlying Combined Ratio	79.2		%	84.8		%	84.6		%	87.8		%	84.3		%	91.8		%	82.0		%	88.2		%
1 Underlying Combined Ratio is a non-GAAP measure, which is computed as the difference between three operating ratios: the combined ratio, the effect of catastrophes (excluding development of prior-year catastrophes) on the combined ratio and the effect of prior-year reserve development at the reporting date (including development on prior-year catastrophes) on the combined ratio.

Page 22

Kemper Corporation Preferred Property & Casualty Insurance Segment Other Personal Insurance - Results of Operations and Selected Financial Information (Dollars in Millions) (Unaudited)
	Three Months Ended																		Six Months Ended
	Jun 30, 2020			Mar 31, 2020			Dec 31, 2019			Sep 30, 2019			Jun 30, 2019			Mar 31, 2019			Jun 30, 2020			Jun 30, 2019
Results of Operations
Net Premiums Written	$	8.7		$	8.3		$	8.6		$	9.8		$	9.9		$	9.0		$	17.0		$	18.9
Earned Premiums	$	8.9		$	9.2		$	9.3		$	9.8		$	9.8		$	9.9		$	18.1		$	19.7
Net Investment Income	0.2			0.3			0.9			0.9			0.9			0.6			0.5			1.5
Total Revenues	9.1			9.5			10.2			10.7			10.7			10.5			18.6			21.2
Incurred Losses and LAE related to:
Current Year:
Non-catastrophe Losses and LAE	3.3			3.9			4.0			4.3			4.6			4.8			7.2			9.4
Catastrophe Losses and LAE	0.4			0.1			0.1			0.5			0.3			0.3			0.5			0.6
Prior Years:
Non-catastrophe Losses and LAE	(0.7		)	(1.2		)	(1.6		)	(0.8		)	(1.5		)	(2.8		)	(1.9		)	(4.3		)
Catastrophe Losses and LAE	0.1			(0.3		)	0.1			(1.7		)	0.1			0.1			(0.2		)	0.2
Total Incurred Losses and LAE	3.1			2.5			2.6			2.3			3.5			2.4			5.6			5.9
Insurance Expenses	2.9			3.1			2.8			2.8			2.7			2.7			6.0			5.4
Operating Profit	3.1			3.9			4.8			5.6			4.5			5.4			7.0			9.9
Income Tax Expense	(0.6		)	(0.8		)	(1.0		)	(1.2		)	(0.9		)	(1.1		)	(1.4		)	(2.0		)
Total Product Line Net Operating Income	$	2.5		$	3.1		$	3.8		$	4.4		$	3.6		$	4.3		$	5.6		$	7.9
Ratios Based On Earned Premiums
Current Year Non-catastrophe Losses and LAE Ratio	37.1		%	42.4		%	43.0		%	43.9		%	46.9		%	48.5		%	39.7		%	47.7		%
Current Year Catastrophe Losses and LAE Ratio	4.5			1.1			1.1			5.1			3.1			3.0			2.8			3.0
Prior Years Non-catastrophe Losses and LAE Ratio	(7.9		)	(13.0		)	(17.2		)	(8.2		)	(15.3		)	(28.3		)	(10.5		)	(21.8		)
Prior Years Catastrophe Losses and LAE Ratio	1.1			(3.3		)	1.1			(17.3		)	1.0			1.0			(1.1		)	1.0
Total Incurred Loss and LAE Ratio	34.8			27.2			28.0			23.5			35.7			24.2			30.9			29.9
Insurance Expense Ratio	32.6			33.7			30.1			28.6			27.6			27.3			33.1			27.4
Combined Ratio	67.4		%	60.9		%	58.1		%	52.1		%	63.3		%	51.5		%	64.0		%	57.3		%
Underlying Combined Ratio1
Current Year Non-catastrophe Losses and LAE Ratio	37.1		%	42.4		%	43.0		%	43.9		%	46.9		%	48.5		%	39.7		%	47.7		%
Insurance Expense Ratio	32.6			33.7			30.1			28.6			27.6			27.3			33.1			27.4
Underlying Combined Ratio	69.7		%	76.1		%	73.1		%	72.5		%	74.5		%	75.8		%	72.8		%	75.1		%
Non-GAAP Measure Reconciliation
Combined Ratio	67.4		%	60.9		%	58.1		%	52.1		%	63.3		%	51.5		%	64.0		%	57.3		%
Less:
Current Year Catastrophe Losses and LAE Ratio	4.5			1.1			1.1			5.1			3.1			3.0			2.8			3.0
Prior Years Non-catastrophe Losses and LAE Ratio	(7.9		)	(13.0		)	(17.2		)	(8.2		)	(15.3		)	(28.3		)	(10.5		)	(21.8		)
Prior Years Catastrophe Losses and LAE Ratio	1.1			(3.3		)	1.1			(17.3		)	1.0			1.0			(1.1		)	1.0
Underlying Combined Ratio	69.7		%	76.1		%	73.1		%	72.5		%	74.5		%	75.8		%	72.8		%	75.1		%
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 23

Kemper Corporation Life & Health Insurance Segment Results of Operations and Selected Financial Information (Dollars in Millions) (Unaudited)
	Three Months Ended																		Six Months Ended
	Jun 30, 2020			Mar 31, 2020			Dec 31, 2019			Sep 30, 2019			Jun 30, 2019			Mar 31, 2019			Jun 30, 2020			Jun 30, 2019
Results of Operations
Earned Premiums	$	162.7		$	163.0		$	160.9		$	160.8		$	162.1		$	159.9		$	325.7		$	322.0
Net Investment Income	44.3			51.0			52.0			49.7			53.0			51.7			95.3			104.7
Other Income	0.5			0.1			2.9			2.9			1.6			1.1			0.6			2.7
Total Revenues	207.5			214.1			215.8			213.4			216.7			212.7			421.6			429.4
Policyholders’ Benefits and Incurred Losses and LAE	105.9			100.7			95.0			88.8			113.5			105.4			206.6			218.9
Insurance Expenses	81.7			86.9			85.3			83.6			87.1			78.0			168.6			165.1
Operating Profit	19.9			26.5			35.5			41.0			16.1			29.3			46.4			45.4
Income Tax Expense	(3.8		)	(4.2		)	(6.6		)	(7.6		)	(2.8		)	(6.2		)	(8.0		)	(9.0		)
Segment Net Operating Income	$	16.1		$	22.3		$	28.9		$	33.4		$	13.3		$	23.1		$	38.4		$	36.4

	Jun 30, 2020		Mar 31, 2020		Dec 31, 2019		Sep 30, 2019		Jun 30, 2019		Mar 31, 2019
Insurance Reserves:
Future Policyholder Benefits	$	3,407.0	$	3,397.1	$	3,385.3	$	3,374.6	$	3,362.6	$	3,346.1
Incurred Losses and LAE Reserves:
Life	61.6		75.5		89.2		97.0		121.4		127.0
Accident and Health	29.1		28.2		27.5		28.1		30.2		28.6
Property	3.8		3.1		3.3		3.5		4.2		3.6
Total Incurred Losses and LAE Reserves	94.5		106.8		120.0		128.6		155.8		159.2
Insurance Reserves	$	3,501.5	$	3,503.9	$	3,505.3	$	3,503.2	$	3,518.4	$	3,505.3

Page 24

Kemper Corporation Life & Health Insurance Segment Life Insurance - Results of Operations and Selected Financial Information (Dollars in Millions) (Unaudited)
	Three Months Ended																		Six Months Ended
	Jun 30, 2020			Mar 31, 2020			Dec 31, 2019			Sep 30, 2019			Jun 30, 2019			Mar 31, 2019			Jun 30, 2020			Jun 30, 2019
Results of Operations
Earned Premiums	$	95.7		$	97.2		$	95.6		$	96.2		$	97.0		$	95.8		$	192.9		$	192.8
Net Investment Income	44.8			48.7			50.1			47.8			51.0			49.9			93.5			100.9
Other Income	0.1			—			2.7			2.8			1.6			1.0			0.1			2.6
Total Revenues	140.6			145.9			148.4			146.8			149.6			146.7			286.5			296.3
Policyholders’ Benefits and Incurred Losses and LAE	76.7			68.1			65.4			$	56.0		75.9			72.8			144.8			148.7
Insurance Expenses	50.9			60.3			55.4			53.3			56.7			49.9			111.2			106.6
Operating Profit	13.0			17.5			27.6			37.5			17.0			24.0			30.5			41.0
Income Tax Expense	(2.4		)	(2.3		)	(4.9		)	(7.0		)	(3.0		)	(5.1		)	(4.7		)	(8.1		)
Total Product Line Operating Income	$	10.6		$	15.2		$	22.7		$	30.5		$	14.0		$	18.9		$	25.8		$	32.9

Kemper Corporation Life & Health Insurance Segment Accident & Health Insurance - Results of Operations and Selected Financial Information (Dollars in Millions) (Unaudited)
	Three Months Ended																		Six Months Ended
	Jun 30, 2020			Mar 31, 2020			Dec 31, 2019			Sep 30, 2019			Jun 30, 2019			Mar 31, 2019			Jun 30, 2020			Jun 30, 2019
Results of Operations
Earned Premiums	$	50.8		$	49.4		$	48.5		$	47.6		$	47.9		$	46.9		$	100.2		$	94.8
Net Investment Income	(0.4		)	2.0			1.5			1.5			1.5			1.5			1.6			3.0
Other Income	0.4			0.1			0.2			0.1			—			0.1			0.5			0.1
Total Revenues	50.8			51.5			50.2			49.2			49.4			48.5			102.3			97.9
Policyholders’ Benefits and Incurred Losses and LAE	22.0			28.1			25.3			27.6			30.6			26.3			50.1			56.9
Insurance Expenses	24.6			20.1			22.8			22.7			22.4			20.8			44.7			43.2
Operating Profit (Loss)	4.2			3.3			2.1			(1.1		)	(3.6		)	1.4			7.5			(2.2		)
Income Tax Benefit (Expense)	(0.9		)	(0.7		)	(0.5		)	0.3			0.8			(0.3		)	(1.6		)	0.5
Total Product Line Net Operating Income (Loss)	$	3.3		$	2.6		$	1.6		$	(0.8	)	$	(2.8	)	$	1.1		$	5.9		$	(1.7	)

Page 25

Kemper Corporation Life & Health Insurance Segment Property Insurance - Results of Operations and Selected Financial Information (Dollars in Millions) (Unaudited)
	Three Months Ended																		Six Months Ended
	Jun 30, 2020			Mar 31, 2020			Dec 31, 2019			Sep 30, 2019			Jun 30, 2019			Mar 31, 2019			Jun 30, 2020			Jun 30, 2019
Results of Operations
Earned Premiums	$	16.2		$	16.4		$	16.8		$	17.0		$	17.2		$	17.2		$	32.6		$	34.4
Net Investment Income	(0.1		)	0.3			0.4			0.4			0.5			0.3			0.2			0.8
Total Revenues	16.1			16.7			17.2			17.4			17.7			17.5			32.8			35.2
Incurred Losses and LAE related to:
Current Year:
Non-catastrophe Losses and LAE	3.5			4.0			3.8			4.5			4.7			5.1			7.5			9.8
Catastrophe Losses and LAE	3.2			0.8			0.5			0.5			1.8			0.3			4.0			2.1
Prior Years:
Non-catastrophe Losses and LAE	0.3			(0.4		)	(0.1		)	0.1			0.2			0.6			(0.1		)	0.8
Catastrophe Losses and LAE	0.2			0.1			0.1			0.1			0.3			0.3			0.3			0.6
Total Incurred Losses and LAE	7.2			4.5			4.3			5.2			7.0			6.3			11.7			13.3
Insurance Expenses	6.2			6.5			7.1			7.6			8.0			7.3			12.7			15.3
Operating Profit	2.7			5.7			5.8			4.6			2.7			3.9			8.4			6.6
Income Tax Expense	(0.5		)	(1.2		)	(1.2		)	(0.9		)	(0.6		)	(0.8		)	(1.7		)	(1.4		)
Total Product Line Net Operating Income	$	2.2		$	4.5		$	4.6		$	3.7		$	2.1		$	3.1		$	6.7		$	5.2
Ratios Based On Earned Premiums
Current Year Non-catastrophe Losses and LAE Ratio	21.5		%	24.3		%	22.6		%	26.5		%	27.3		%	29.7		%	23.0		%	28.6		%
Current Year Catastrophe Losses and LAE Ratio	19.8			4.9			3.0			2.9			10.5			1.7			12.3			6.1
Prior Years Non-catastrophe Losses and LAE Ratio	1.9			(2.4		)	(0.6		)	0.6			1.2			3.5			(0.3		)	2.3
Prior Years Catastrophe Losses and LAE Ratio	1.2			0.6			0.6			0.6			1.7			1.7			0.9			1.7
Total Incurred Loss and LAE Ratio	44.4			27.4			25.6			30.6			40.7			36.6			35.9			38.7
Insurance Expense Ratio	38.3			39.6			42.3			44.7			46.5			42.4			39.0			44.5
Combined Ratio	82.7		%	67.0		%	67.9		%	75.3		%	87.2		%	79.0		%	74.9		%	83.2		%
Underlying Combined Ratio1
Current Year Non-catastrophe Losses and LAE Ratio	21.5		%	24.3		%	22.6		%	26.5		%	27.3		%	29.7		%	23.0		%	28.6		%
Insurance Expense Ratio	38.3			39.6			42.3			44.7			46.5			42.4			39.0			44.5
Underlying Combined Ratio	59.8		%	63.9		%	64.9		%	71.2		%	73.8		%	72.1		%	62.0		%	73.1		%
Non-GAAP Measure Reconciliation
Combined Ratio	82.7		%	67.0		%	67.9		%	75.3		%	87.2		%	79.0		%	74.9		%	83.2		%
Less:
Current Year Catastrophe Losses and LAE Ratio	19.8			4.9			3.0			2.9			10.5			1.7			12.3			6.1
Prior Years Non-catastrophe Losses and LAE Ratio	1.9			(2.4		)	(0.6		)	0.6			1.2			3.5			(0.3		)	2.3
Prior Years Catastrophe Losses and LAE Ratio	1.2			0.6			0.6			0.6			1.7			1.7			0.9			1.7
Underlying Combined Ratio	59.8		%	63.9		%	64.9		%	71.2		%	73.8		%	72.1		%	62.0		%	73.1		%
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 26

Kemper Corporation Insurance Expenses and Interest and Other Expenses (Dollars in Millions)
	Three Months Ended																		Six Months Ended
	Jun 30, 2020			Mar 31, 2020			Dec 31, 2019			Sep 30, 2019			Jun 30, 2019			Mar 31, 2019			Jun 30, 2020			Jun 30, 2019
Insurance Expenses:
Commissions	$	178.2		$	188.8		$	172.7		$	178.3		$	183.8		$	174.0		$	367.0		$	357.8
General Expenses	79.2			70.5			70.4			69.8			74.9			62.9			149.7			137.8
Premium Taxes	23.1			24.8			22.0			21.8			25.0			24.7			47.9			49.7
Total Costs Incurred	280.5			284.1			265.1			269.9			283.7			261.6			564.6			545.3
Net Policy Acquisition Costs Deferred	(9.3		)	(13.8		)	(1.0		)	(15.2		)	(21.7		)	(29.0		)	(23.1		)	(50.7		)
Amortization of Valuation of Business Acquired ("VOBA")	1.5			1.3			1.3			1.3			1.5			2.2			2.8			3.7
Insurance Expenses	272.7			271.6			265.4			256.0			263.5			234.8			544.3			498.3
Interest and Other Expenses:
Loss from Early Extinguishment of Debt	—			—			—			5.8			—			—			—			—
Interest Expense	8.9			7.5			10.0			9.2			11.8			11.5			16.4			23.3
Other Expenses:
Acquisition Related Transaction, Integration and Other Costs	17.1			11.8			6.2			5.4			1.2			5.6			28.9			6.8
Other	25.0			25.2			30.3			23.3			25.0			24.3			50.2			49.3
Other Expenses	42.1			37.0			36.5			28.7			26.2			29.9			79.1			56.1
Interest and Other Expenses	51.0			44.5			46.5			43.7			38.0			41.4			95.5			79.4
Total Expenses	$	323.7		$	316.1		$	311.9		$	299.7		$	301.5		$	276.2		$	639.8		$	577.7

Page 27

Kemper Corporation Details of Investment Performance (Dollars in Millions)
	Three Months Ended																		Six Months Ended
	Jun 30, 2020			Mar 31, 2020			Dec 31, 2019			Sep 30, 2019			Jun 30, 2019			Mar 31, 2019			Jun 30, 2020			Jun 30, 2019
Net Investment Income
Interest on Fixed Income Securities	$	74.3		$	71.0		$	73.9		$	73.5		$	75.6		$	76.4		$	145.3		$	152.0
Dividends on Equity Securities Excluding Alternative Investments	3.6			4.3			8.3			5.2			6.9			2.5			7.9			9.4
Alternative Investments:
Equity Method Limited Liability Investments	(12.7		)	1.8			0.4			1.6			2.6			(3.6		)	(10.9		)	(1.0		)
Limited Liability Investments Included in Equity Securities	1.1			3.8			5.1			5.2			5.1			2.6			4.9			7.7
Total Alternative Investments	(11.6		)	5.6			5.5			6.8			7.7			(1.0		)	(6.0		)	6.7
Short-term Investments	0.3			1.6			1.3			2.5			2.6			1.8			1.9			4.4
Real Estate	2.3			2.5			2.7			2.4			2.2			2.5			4.8			4.7
Loans to Policyholders	5.5			5.6			5.7			5.9			5.7			5.3			11.1			11.0
Other	2.4			4.2			0.6			0.6			0.3			—			6.6			0.3
Total Investment Income	76.8			94.8			98.0			96.9			101.0			87.5			171.6			188.5
Investment Expenses:
Real Estate	2.7			2.6			2.4			2.5			2.3			2.4			5.3			4.7
Other Investment Expenses	6.3			6.6			1.7			2.7			2.7			2.4			12.9			5.1
Total Investment Expenses	9.0			9.2			4.1			5.2			5.0			4.8			18.2			9.8
Net Investment Income	$	67.8		$	85.6		$	93.9		$	91.7		$	96.0		$	82.7		$	153.4		$	178.7
Net Realized Gains (Losses) on Sales of Investments
Fixed Maturities:
Gains on Sales	$	10.9		$	15.9		$	1.4		$	1.9		$	22.7		$	15.1		$	26.8		$	37.8
Losses on Sales	(0.5		)	(1.1		)	—			(0.3		)	(1.9		)	(2.6		)	(1.6		)	(4.5		)
Equity Securities:
Gains on Sales	0.1			1.3			1.3			0.2			0.7			3.6			1.4			4.3
Losses on Sales	—			(0.2		)	0.1			(0.1		)	(0.2		)	—			(0.2		)	(0.2		)
Real Estate:
Gains on Sales	1.2			0.6			—			—			—			—			1.8			—
Net Realized Gains on Sales of Investments	$	11.7		$	16.5		$	2.8		$	1.7		$	21.3		$	16.1		$	28.2		$	37.4
Net Impairment Losses Recognized in Earnings
Fixed Maturities	$	(7.0	)	$	(10.0	)	$	(1.7	)	$	(1.7	)	$	(6.3	)	$	(3.6	)	$	(17.0	)	$	(9.9	)
Equity Securities	—			(2.0		)	—			(0.1		)	(0.4		)	—			(2.0		)	(0.4		)
Net Impairment Losses Recognized in Earnings	$	(7.0	)	$	(12.0	)	$	(1.7	)	$	(1.8	)	$	(6.7	)	$	(3.6	)	$	(19.0	)	$	(10.3	)

Page 28

Kemper Corporation Details of Invested Assets (Dollars in Millions) (Unaudited)
	Jun 30, 2020				Dec 31, 2019				Dec 31, 2018
	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	$	711.6	7.5	%	$	815.9	8.8	%	$	865.7	10.6	%
States and Political Subdivisions	1,508.1		15.9		1,515.8		16.4		1,619.1		19.9
Foreign Governments	5		0.1		16.8		0.2		5.9		0.1
Corporate Securities:
Bonds and Notes	4,324.3		45.7		3,859.7		41.7		3,393.8		41.8
Redeemable Preferred Stocks	6.7		0.1		6.7		0.1		—		—
Collaterized Loan Obligations	711.1		7.5		618.2		6.7		524.0		6.4
Other Mortgage- and Asset-backed	213.6		2.3		89.0		1.0		15.7		0.2
Total Fixed Maturities Reported at Fair Value	7,480.4		79.1		6,922.1		74.7		6,424.2		79.0
Equity Securities Reported at Fair Value:
Preferred Stocks	54.5		0.6		59.2		0.6		54.2		0.7
Common Stocks	8.4		0.1		13.2		0.1		10.9		0.1
Other Equity Interests:
Exchange Traded Funds	445.5		4.7		586.8		6.3		427.3		5.3
Limited Liability Companies and Limited Partnerships	274.9		2.9		248.1		2.7		192.0		2.4
Total Equity Securities Reported at Fair Value	783.3		8.3		907.3		9.8		684.4		8.5
Equity Securities Reported at Modified Cost:
Preferred Stocks	9.1		0.1		9.1		0.1		9.2		0.1
Common Stocks	18.6		0.2		12.3		0.1		8.8		0.1
Limited Liability Companies and Limited Partnerships	20.4		0.2		20.5		0.2		23.5		0.3
Total Equity Securities Reported at Modified Cost	48.1		0.5		41.9		0.4		41.5		0.5
Convertible Securities at Fair Value	35.0		0.4		37.3		0.4		31.5		0.4
Equity Method Limited Liability Investments	209.9		2.2		220.4		2.4		187.0		2.3
Short-term Investments at Cost which Approximates Fair Value	154.2		1.6		470.9		5.1		286.1		3.5
Other Investments:
Company Owned Life Insurance	322.6		3.4		217.0		2.3		59.3		0.7
Loans to Policyholders at Unpaid Principal	301.0		3.2		305.6		3.3		300.6		3.7
Real Estate at Depreciated Cost	101.8		1.1		111.4		1.2		114.2		1.4
Mortgage Loans	30.7		0.3		27.5		0.3		—		—
Other	1.4		—		—		—		—		—
Total Other Investments	757.5		8.0		661.5		7.1		474.1		5.8
Total Investments	$	9,468.4	100.0	%	$	9,261.4	100.0	%	$	8,128.8	100.0	%
1 Sum of percentages for individual lines may not equal subtotals and grand total due to rounding.

Page 29

Kemper Corporation Details of Invested Assets (continued) (Dollars in Millions) (Unaudited)
	Jun 30, 2020				Dec 31, 2019				Dec 31, 2018
	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	$	4,738.9	63.4	%	$	4,387.1	63.4	%	$	4,156.6	64.7	%
BBB	2,241.7		30.0		2,044.1		29.5		1,752.6		27.3
BB, B	325.1		4.3		319.2		4.6		333.7		5.2
CCC or Lower	174.6		2.3		171.7		2.5		181.3		2.8
Total Investments in Fixed Maturities	$	7,480.3	100.1	%	$	6,922.1	100.0	%	$	6,424.2	100.0	%
Duration (in Years)
Total Investments in Fixed Maturities	7.5				7.1				6.2
1 Sum of percentages for individual lines may not equal subtotals and grand total due to rounding.

Page 30

Kemper Corporation Investment Concentration (Dollars in Millions) (Unaudited)
	Jun 30, 2020				Dec 31, 2019				Dec 31, 2018
Fair Value of Non-governmental Fixed Maturities by Industry	Amount		Percent of Total Investments		Amount		Percent of Total Investments		Amount		Percent of Total Investments
Finance, Insurance and Real Estate	$	1,811.3	19.1	%	$	1,522.8	16.4	%	$	1,269.3	15.6	%
Manufacturing	1,597.4		16.9		1,356.4		14.6		1,270.0		15.6
Transportation, Communication and Utilities	794.7		8.4		650.2		7.0		449.0		5.5
Services	561.4		5.9		604.4		6.5		516.4		6.4
Mining	268.1		2.8		154.5		1.7		158.6		2.0
Retail Trade	206.1		2.2		183.3		2.0		164.8		2.0
Wholesale Trade	0.7		—		72.9		0.8		78.4		1.0
Agriculture, Forestry and Fishing	—		—		12.4		0.1		13.7		0.2
Other	16.0		0.2		16.6		0.2		13.3		0.2
Total Fair Value of Non-governmental Fixed Maturities	$	5,255.7	55.5	%	$	4,573.5	49.3	%	$	3,933.5	48.5	%

	Jun 30, 2020
Ten Largest Investment Exposures 1	Fair Value		Percent of Total Investments
Fixed Maturities:
States including their Political Subdivisions:
Texas	$	132.0	1.4	%
Georgia	101.4		1.1
Colorado	95.0		1.0
New York	75.7		0.8
California	69.3		0.7
Louisiana	68.1		0.7
Michigan	68.0		0.7
Ohio	56.6		0.6
Washington	54.8		0.6
Equity Securities at Fair Value—Other Equity Interests:
Vanguard Total World Stock ETF	157.9		1.7
Total	$	878.8	9.3	%

¹  Excluding Investments in U.S. Government and Government Agencies and Authorities at June 30, 2020.

Page 31

Kemper Corporation Municipal Bond Securities (Dollars in Millions) (Unaudited)
	Jun 30, 2020
	State General Obligation		Political Subdivision General Obligation		Revenue		Total Fair Value		Percent of Total Muni Bond1		Percent of Total Investments1
Texas	$	10.3	$	13.9	$	107.8	$	132.0	8.8	%	1.4	%
Georgia	47.3		6.1		48.0		101.4		6.7		1.1
Colorado	—		11.0		84.0		95.0		6.3		1.0
New York	6.8		9.0		59.9		75.7		5.0		0.8
California	7.1		5.1		57.1		69.3		4.6		0.7
Louisiana	41.5		5.4		21.2		68.1		4.5		0.7
Michigan	40.3		—		27.7		68.0		4.5		0.7
Ohio	6.6		—		50.0		56.6		3.8		0.6
Washington	15.7		—		39.1		54.8		3.6		0.6
Virginia	7.0		20.5		17.0		44.5		3.0		0.5
Pennsylvania	6.4		2.6		34.4		43.4		2.9		0.5
Oregon	34.6		—		4.3		38.9		2.6		0.4
Utah	0.6		—		37.5		38.1		2.5		0.4
Minnesota	—		—		35.4		35.4		2.3		0.4
Florida	5.2		—		30.2		35.4		2.3		0.4
Massachusetts	2.7		1.5		30.7		34.9		2.3		0.4
New Mexico	—		—		33.4		33.4		2.2		0.4
Indiana	—		—		33.0		33.0		2.2		0.3
District Of Columbia	4.7		—		28.3		33.0		2.2		0.3
South Carolina	17.5		1.8		10.9		30.2		2.0		0.3
Missouri	—		—		26.4		26.4		1.8		0.3
Illinois	—		—		24.5		24.5		1.6		0.3
Nebraska	—		8.5		14.6		23.1		1.5		0.2
Hawaii	20.7		0.3		—		21.0		1.4		0.2
Tennessee	3.6		8.7		7.9		20.2		1.3		0.2
Arkansas	19.3		—		—		19.3		1.3		0.2
Kentucky	—		—		18.7		18.7		1.2		0.2
New Jersey	—		—		18.4		18.4		1.2		0.2
Maryland	2.1		8.7		7.0		17.8		1.2		0.2
Mississippi	13.6		—		2.6		16.2		1.1		0.2
Alaska	1.9		3.0		10.3		15.2		1.0		0.2
Alabama	—		—		15.1		15.1		1.0		0.2
Wisconsin	—		7.4		7.4		14.8		1.0		0.2
Arizona	—		0.8		12.8		13.6		0.9		0.1
Connecticut	13.5		—		—		13.5		0.9		0.1
Iowa	—		—		12.3		12.3		0.8		0.1
Idaho	—		—		12.1		12.1		0.8		0.1
Oklahoma	—		—		11.7		11.7		0.8		0.1
Rhode Island	—		—		11.3		11.3		0.7		0.1
All Other States	4.7		7.3		49.8		61.8		4.1		0.7
Total	$	333.7	$	121.6	$	1,052.8	$	1,508.1	100.0	%	15.9	%
1 Sum of percentages for individual lines may not equal total due to rounding.

Page 32

Kemper Corporation Investments in Limited Liability Companies and Limited Partnerships (Dollars in Millions) (Unaudited)
	Unfunded Commitment		Reported Value
Asset Class	Jun 30, 2020		Jun 30, 2020		Dec 31, 2019
Reported as Equity Method Limited Liability Investments at Cost Plus Cumulative Undistributed Earnings:
Mezzanine Debt	$	53.5	$	133.3	$	129.3
Senior Debt	15.6		9.9		16.0
Distressed Debt	—		12.9		22.7
Secondary Transactions	15.5		12.0		11.5
Leveraged Buyout	—		0.1		0.1
Growth Equity	—		4.3		5.3
Real Estate	—		30.5		29.9
Other	—		6.9		5.6
Total Equity Method Limited Liability Investments	84.6		209.9		220.4
Reported as Other Equity Interests at Fair Value:
Mezzanine Debt	86.7		136.5		126.1
Senior Debt	21.0		37.0		39.5
Distressed Debt	20.8		16.7		16.8
Secondary Transactions	6.8		4.6		4.9
Hedge Funds	—		66.6		48.2
Leveraged Buyout	2.1		4.3		4.4
Other	6.5		9.2		8.2
Total Reported as Other Equity Interests at Fair Value	143.9		274.9		248.1
Reported as Other Equity Interests at Modified Cost:
Mezzanine Debt	0.2		2.3		1.6
Other	—		18.1		18.9
Total Reported as Other Equity Interests at Modified Cost	0.2		20.4		20.5
Total Investments in Limited Liability Companies and Limited Partnerships	$	228.7	$	505.2	$	489.0

Page 33

Kemper Corporation

Definitions of Non-GAAP Financial Measures

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

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

Book Value Per Share Excluding Net Unrealized Gains 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 Net Income (Loss) the after-tax impact of:

1) Net Realized Gains on Sales of Investments;

2) Impairment Losses;

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 Net Income (Loss).

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, Impairment Losses 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 34

Kemper Corporation

Definitions of Non-GAAP Financial Measures (continued)

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

	Three Months Ended																		Six Months Ended
Dollars in Millions (Unaudited)	Jun 30, 2020			Mar 31, 2020			Dec 31, 2019			Sep 30, 2019			Jun 30, 2019			Mar 31, 2019			Jun 30, 2020			Jun 30, 2019
Net Income	$	126.1		$	64.0		$	124.7		$	129.0		$	122.1		$	155.3		$	190.1		$	277.4
Less Net Income (Loss) From:
Change in Fair Value of Equity and Convertible Securities	56.6			(93.1		)	30.9			7.8			20.1			50.9			(36.5		)	71.0
Net Realized Gains on Sales of Investments	9.3			13.0			2.2			1.4			16.8			12.7			22.3			29.5
Impairment Losses	(5.5		)	(9.5		)	(1.3		)	(1.5		)	(5.3		)	(2.8		)	(15.0		)	(8.1		)
Acquisition Related Transaction, Integration and Other Costs	(13.5		)	(9.3		)	(5.0		)	(4.1		)	(1.0		)	(4.4		)	(22.8		)	(5.4		)
Loss from Early Extinguishment of Debt	—			—			—			(4.6		)	—			—			—			—
Adjusted Consolidated Net Operating Income	$	79.2		$	162.9		$	97.9		$	130.0		$	91.5		$	98.9		$	242.1		$	190.4

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

	Three Months Ended																		Six Months Ended
(Unaudited)	Jun 30, 2020			Mar 31, 2020			Dec 31, 2019			Sep 30, 2019			Jun 30, 2019			Mar 31, 2019			Jun 30, 2020			Jun 30, 2019
Net Income Per Unrestricted Share	$	1.93		$	0.96		$	1.87		$	1.93		$	1.87		$	2.38		$	2.88		$	4.25
Less Net Income (Loss) Per Unrestricted Share From:
Change in Fair Value of Equity and Convertible Securities	0.87			(1.40		)	0.46			0.11			0.31			0.78			(0.55		)	1.09
Net Realized Gains on Sales of Investments	0.14			0.19			0.03			0.02			0.26			0.19			0.34			0.45
Impairment Losses	(0.08		)	(0.14		)	(0.02		)	(0.02		)	(0.08		)	(0.04		)	(0.23		)	(0.12		)
Acquisition Related Transaction and Integration Costs	(0.21		)	(0.14		)	(0.06		)	(0.06		)	(0.01		)	(0.07		)	(0.35		)	(0.08		)
Loss from Early Extinguishment of Debt	—			—			—			(0.07		)	—			—			—			—
Adjusted Consolidated Net Operating Income Per Unrestricted Share	$	1.21		$	2.45		$	1.46		$	1.95		$	1.39		$	1.52		$	3.67		$	2.91

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 35

Kemper Corporation

As Adjusted or As Adjusted for Acquisition Non-GAAP Financial Measure

As Adjusted or As Adjusted for Acquisition amounts are non-GAAP financial measures. For the periods subsequent to acquisition, the three months endedJune 30, 2020, March 31, 2020, December 31, 2019, September 30, 2019, June 30, 2019 and March 31, 2019 the As Adjusted or As Adjusted for Acquisition 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.

Page 36

Kemper Corporation

As Adjusted for Acquisition - Consolidated Financial Highlights

(Dollars in Millions)

(Unaudited)

	Three Months Ended																	Six Months Ended
	Jun 30, 2020			Mar 31, 2020			Dec 31, 2019			Sep 30, 2019			Jun 30, 2019			Mar 31, 2019		Jun 30, 2020			Jun 30, 2019
Earned Premiums
Kemper - GAAP As Reported	$	1,085.3		$	1,166.4		$	1,145.8		$	1,135.2		$	1,116.6		$	1,074.8	$	2,251.7		$	2,191.4
Adjusted Consolidated Net Operating Income (Loss)
Kemper	$	79.2		$	162.9		$	97.9		$	130.0		$	91.5		$	98.9	$	242.1		$	190.4
Less: Impact of Purchase Accounting	(4.4		)	(4.4		)	(4.4		)	(6.1		)	(4.2		)	2.1		(8.8		)	(2.1		)
As Adjusted1	$	83.6		$	167.3		$	102.3		$	136.1		$	95.7		$	96.8	$	250.9		$	192.5
1 As Adjusted is a non-GAAP financial measure, which is computed by excluding the impact of purchase accounting.

Page 37

Kemper Corporation

Selected Financial Information

As Adjusted for Acquisition - Specialty Property & Casualty Insurance Segment

(Dollars in Millions)

(Unaudited)

	Three Months Ended																		Six Months Ended
	Jun 30, 2020			Mar 31, 2020			Dec 31, 2019			Sep 30, 2019			Jun 30, 2019			Mar 31, 2019			Jun 30, 2020			Jun 30, 2019
Earned Premiums
Kemper Specialty P&C - GAAP As Reported	$	759.0		$	822.5		$	799.7		$	783.4		$	766.0		$	729.3		$	1,581.5		$	1,495.3
Current Year Non-CAT Losses and LAE
Kemper Specialty P&C - GAAP As Reported	$	515.8		$	619.8		$	599.5		$	579.4		$	579.2		$	544.3		$	1,135.6		$	1,123.5
Less: Impact of Purchase Accounting
Amortization of Fair Value Adjustment to Infinity's Unpaid Loss and LAE	0.8			0.7			0.8			0.8			1.2			1.5			1.5			2.7
As Adjusted1	$	515.0		$	619.1		$	598.7		$	578.6		$	578.0		$	542.8		$	1,134.1		$	1,120.8
Insurance Expenses
Kemper Specialty P&C - GAAP As Reported	$	161.2		$	152.1		$	150.7		$	139.2		$	140.9		$	124.8		$	313.3		$	265.7
Less: Impact of Purchase Accounting
Amortization of VOBA	0.6			0.6			0.6			0.6			0.8			1.5			1.2			2.3
Amortization of Estimated Legacy Infinity Deferred Policy Acquisition Costs ("DPAC")	—			—			—			—			(3.1		)	(12.1		)	—			(15.2		)
Amortization of VOBA, Net of Legacy Infinity DPAC	0.6			0.6			0.6			0.6			(2.3		)	(10.6		)	1.2			(12.9		)
Amortization of Finite Life Intangible Assets Acquired	0.9			1.2			1.2			3.3			3.3			3.3			1.8			6.6
Other	3.0			3.4			3.4			3.4			3.4			3.4			5.9			6.8
Total Purchase Accounting Adjustments	4.5			5.2			5.2			7.3			4.4			(3.9		)	8.9			0.5
As Adjusted1	$	156.7		$	146.9		$	145.5		$	131.9		$	136.5		$	128.7		$	304.4		$	265.2
Underlying Combined Ratio1
Kemper Specialty P&C Segment - GAAP As Reported	89.1		%	93.9		%	93.8		%	91.8		%	94.0		%	91.7		%	91.7		%	93.0		%
As Adjusted1	88.5		%	93.1		%	93.1		%	90.7		%	93.3		%	92.1		%	91.0		%	92.7		%
1 As Adjusted is a non-GAAP financial measure, which is computed by excluding the impact of purchase accounting. See page 34.

Page 38

Kemper Corporation

Selected Financial Information

As Adjusted for Acquisition - Specialty Personal Automobile Insurance

(Dollars in Millions)

(Unaudited)

	Three Months Ended																		Six Months Ended
	Jun 30, 2020			Mar 31, 2020			Dec 31, 2019			Sep 30, 2019			Jun 30, 2019			Mar 31, 2019			Jun 30, 2020			Jun 30, 2019
Earned Premiums
Kemper Specialty Personal Automobile Insurance - GAAP As Reported	$	689.8		$	753.2		$	733.1		$	719.2		$	703.7		$	669.6		$	1,443.0		$	1,373.3
Infinity - Prior to Acquisition	—			—			—			—			—			—			—			—
As Adjusted1	$	689.8		$	753.2		$	733.1		$	719.2		$	703.7		$	669.6		$	1,443.0		$	1,373.3
Current Year Non-CAT Losses and LAE
Kemper Specialty Personal Automobile Insurance - GAAP As Reported	472.4			$	576.0		$	557.5		$	538.2		537.0			$	498.8		$	1,048.4		$	1,035.8
Less: Impact of Purchase Accounting
Amortization of Fair Value Adjustment to Infinity's Unpaid Loss and LAE	0.6			0.6			0.6			0.6			0.9			1.3			1.2			—
As Adjusted1	$	471.8		$	575.4		$	556.9		$	537.6		$	536.1		$	497.5		$	1,047.2		$	1,035.8
Insurance Expenses
Kemper Specialty Personal Automobile Insurance - GAAP As Reported	$	146.7		$	139.2		$	138.1		$	128.4		$	128.9		$	114.7		$	285.9		$	243.6
Less: Impact of Purchase Accounting
Amortization of VOBA	0.4			0.4			0.4			0.4			0.7			1.3			0.8			2.0
Amortization of Estimated Legacy Infinity Deferred Policy Acquisition Costs ("DPAC")	—			—			—			—			(2.8		)	(9.8		)	—			(12.6		)
Amortization of VOBA, Net of Legacy Infinity DPAC	0.4			0.4			0.4			0.4			(2.1		)	(8.5		)	0.8			(10.6		)
Amortization of Finite Life Intangible Assets Acquired	0.7			1.1			1.1			3.0			3.0			3.0			1.4			6.0
Other	2.4			3.0			3.0			3.0			3.0			3.0			4.8			6.0
Total Purchase Accounting Adjustments	3.5			4.5			4.5			6.4			3.9			(2.5		)	7.0			1.4
As Adjusted1	$	143.2		$	134.7		$	133.6		$	122.0		$	125.0		$	117.2		$	278.9		$	242.2
Underlying Combined Ratio1
Kemper Specialty Personal Automobile Insurance - GAAP As Reported	89.8		%	95.0		%	94.8		%	92.8		%	94.6		%	91.6		%	92.5		%	93.1		%
As Adjusted1	89.2		%	94.3		%	94.2		%	91.7		%	93.9		%	91.8		%	91.9		%	93.1		%
1 As Adjusted is a non-GAAP financial measure, which is computed by excluding the impact of purchase accounting. See page 34.

Page 39

EX-99.3

Exhibit 99.3 Second Quarter 2020 Earnings August 3, 2020 Earnings Call Presentation – 2Q 2020

Preliminary Matters Cautionary Statements Regarding Forward-Looking Information This presentation may contain or incorporate by reference information that includes or is based on forward-looking statements within the meaning of the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements give expectations or forecasts of future events and can be identified by the fact that they relate to future actions, performance or results rather than strictly to historical or current facts. Any or all forward-looking statements may turn out to be wrong, and, accordingly, readers are cautioned not to place undue reliance on such statements, which speak only as of the date of this presentation. Forward-looking statements involve a number of risks and uncertainties that are difficult to predict and are not guarantees of future performance. Among the general factors that could cause actual results and financial condition to differ materially from estimated results and financial condition are those factors listed in periodic reports filed by Kemper Corporation with the Securities and Exchange Commission (“SEC”). The COVID-19 outbreak and subsequent global pandemic (“Pandemic”) is an extraordinary event that creates unique uncertainties and risks. Kemper cannot provide any assurances as to the impacts of the Pandemic and related economic conditions on the Company’s operating and financial results. 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, including any such statements related to the Pandemic. The reader is advised, however, to consult any further disclosures Kemper makes on related subjects in its filings with the SEC. Non-GAAP Financial Measures This presentation contains non-GAAP financial measures that the company believes are meaningful to investors. Non-GAAP financial measures have been reconciled to the most comparable GAAP financial measure. Earnings Call Presentation – 2Q 2020 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 – 2Q 2020 3

Second Quarter 2020 Highlights High quality balance sheet and business model continue to enable us to serve our stakeholders Delivered double-digit return on equity and solid adjusted consolidated net operating EPS • Net income of $126 million and adjusted consolidated net operating income1 of $79 million Shareholder • Earnings per share of $1.91, on a diluted basis; adjusted consolidated net operating EPS1 of $1.20 Value Creation • 11.4% ROAE2 and 18.8% ROAE2, excluding net unrealized gains on fixed maturities and goodwill1 • Book value per share ex. net unrealized gains on fixed maturities and goodwill1 grew 15% year-over-year Results in the quarter were impacted by COVID-19; growth trajectory remains attractive • Earned premiums increased 6%, excluding impact of $100 million of premium credits in auto business 2nd Quarter • Specialty P&C earned premiums increased by $80 million, or 10%, vs. prior year quarter, excluding premium credits; continued growth in new and existing geographies Operating • Preferred P&C net income increased on a year-to-date basis due to continued profit improvement actions Performance and macro environmental factors • Life & Health results were impacted by increased mortality • Net investment income impacted all segments primarily due to alternative investments (reports on lag) Strong capital position provides significant financial flexibility • Debt-to-capital ratio of 15.7%; $943 million of available committed contingent liquidity Financial Strength • High quality balance sheet and capital structure with no near-term debt maturities • Diversified operating model allows us to meet the needs of our customers while delivering consistently attractive returns to shareholders ¹ Non-GAAP financial measure; please see reconciliation in appendix on pages 23-32 2 Return on average shareholders’ equity (5-point average) Earnings Call Presentation – 2Q 2020 4

Second Quarter Financial Highlights Steady strategy execution continues to yield attractive results As Adjusted As Reported for Acquisition1 Quarter Ended Quarter Ended June 30, Change from June 30, Change from (Dollars in millions, except per share amounts) 2020 2Q’19 (%) 2020 2Q’19 (%) Net Income $126 3% $131 3% Adjusted Consolidated Net Operating Income1 $79 (13)% $84 (13)% Per Share Net Income - Diluted $1.91 4% $1.97 4% Adj. Consolidated Net Operating Income - Diluted1 $1.20 (13)% $1.26 (13)% Delivered solid adjusted consolidated net operating income ¹ Non-GAAP financial measure; please see reconciliation in appendix on pages 23-32 Earnings Call Presentation – 2Q 2020 5

Review of Net Operating Income Continuing to produce strong operating income Three Months Ended, As Reported Jun. 30, Mar. 31, Dec. 31, Sep. 30, Jun. 30, Variance Dollars per Unrestricted Share - Diluted 2020 2020 2019 2019 2019 QoQ Net Income $ 1.91 $ 0.95 $ 1.85 $ 1.91 $ 1.84 $ 0.07 (Income) Loss from Change in FV of Equity & Convertible Securities (0.86) 1.39 (0.46) (0.11) (0.30) (0.56) Investment Related (Gains)/Losses (0.14) (0.19) (0.03) (0.02) (0.25) 0.11 Net Impairment Losses 0.08 0.14 0.02 0.02 0.08 - Acquisition Related Transaction, Integration & Other Costs 0.21 0.14 0.07 0.06 0.01 0.20 Loss from Early Extinguishment of Debt - - - 0.07 - - Adj. Consolidated Net Operating Income1 $ 1.20 $ 2.43 $ 1.45 $ 1.93 $ 1.38 $ (0.18) Sources of Volatility: Income (Loss) After-Tax From: Catastrophes (0.34) (0.07) (0.19) (0.17) (0.34) - - Prior-year Reserve Development (0.22) (0.01) 0.18 0.24 0.16 (0.38) - Alternative Investment Income (0.14) 0.07 0.07 0.08 0.09 (0.23) - Partial Satisfaction of Judgment - 1.05 - - 0.24 (0.24) Sale of Classic Collectors Auto Business - - - 0.04 - - Refinement of CEI Estimate 0.06 0.05 0.07 0.18 - 0.06 Impact of Purchase Accounting (0.06) (0.07) (0.07) (0.09) (0.06) - Total from Sources of Volatility $ (0.70) $ 1.02 $ 0.06 $ 0.28 $ 0.09 $ (0.79) Business continues to deliver solid financial performance despite challenging economic conditions ¹ Non-GAAP financial measure; see reconciliation in appendix pages 23-32 Earnings Call Presentation – 2Q 2020 6

High Quality & Diversified Investment Portfolio Net Investment Income¹ Overview $97 $95 $97 $86 $68 • Net investment income and portfolio yield (MM) $8 $7 $6 impacted by reporting lag in alternatives $6 • Investment portfolio continues to be high quality and well diversified $90 $88 $91 $80 $80 • Investment income supports long-term business objectives $(12) 2Q19 3Q19 4Q19 1Q20 2Q20 Core Portfolio Alternative Inv. Portfolio Diversified & Highly-Rated Portfolio Pre-Tax Equiv. Annualized Book Yield¹ Portfolio Composition Fixed Maturity Ratings Other ≤ CCC Alternatives Short-term B / BB Impact vs. 2Q19 4% Alternatives² 8% Corporates Equity² 5% 0.9% 6% 1% 2% 30% 4.7% U.S. 8% 4.6% 4.6% 4.1% Gov’t 56% BBB 63% 3.2% 16% States/ A or Higher Munis 2Q19 3Q19 4Q19 1Q20 2Q20 $9.5 Billion $7.5 Billion Note: Charts may not balance due to rounding ¹ Includes COLI. Please see reconciliation of COLI’s inclusion in net investment income on page 25 Earnings Call Presentation – 2Q 2020 7 2 Equity securities excludes $295 million of Other Equity Interests of LP/LLC’s that have been reclassified into Alternative Investments

Net Investment Income Walk Negatively impacted by broad market pressure Key Highlights • Lower interest rates, lower dividends and portfolio management actions impacting net investment income • Income from alternative portfolio reflects challenging first quarter market environment (reporting lag) $97 ($ in millions) $(3) $(3) $1 $68 $(19) $(2) $(2) 2Q19 Net Fixed Equity Alternative Short Term Other Investment 2Q20 Net Inv. Income Income Dividends Portfolio Investments Investments Expense Inv. Income Investment portfolio well positioned to meet business needs over the long-term Note: Chart may not balance due to rounding. FHLB expenses / interest included in Fixed Income for chart purposes. Report FHLB expenses / interest in Investment Expense in our public filings. Earnings Call Presentation – 2Q 2020 8

Strong Balance Sheet and Capital Position with Ample Liquidity Provides significant financial flexibility Significant Parent Company Liquidity Risk-Based Capital Ratios $943 $867 (%) (MM) $741 $684 $582 $641 $672 $400 $385 $660 415 430 410 $385 $540 375 355 365 360 330 335 290 285 335 $341 $299 $271 $197 $101 $207 2015 2016 2017 2018 2019 2Q20 2015 2016 2017 2018 2019 2Q20E Borrowings Available Under Credit Agreement & from Subs Life & Health P&C (ex. Alliance United) HoldCo Cash & Investments Cash Flow from Operating Activities Debt-to-Capital <30% $562 27.4% 27.6% 2Q20 21.9% 23.0% (MM) $202 16.4% 15.7% Debt $539 $534 $360 $215 $241 $241 2015 2016 2017 2018 2019 2Q20 2015 2016 2017 2018 2019 LTM 2Q20 Total $2.7B $4.0B $5.0B Capitalization $2.7B $2.7B $4.8B Balance sheet well positioned to meet operating capital and liquidity needs Earnings Call Presentation – 2Q 2020 9

Consistent Capital Generation and Attractive Returns Operating model built to provide consistent growth and returns through economic cycles Total Adjusted Return of BVPS Ex. Unrealized Gains on Fixed Maturities and Goodwill Growth 44% $42.58 $40.27 $40.70 $38.43 • Strong execution and $36.46 solid operating results $33.42 $31.21 $31.10 has led to consistent $29.66 book value growth and shareholder returns 2016 2017 2018 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 Book Value Per Share ex. Goodwill and Unrealized¹ Cumulative Dividends Per Share Paid Return on Shareholders’ Equity 24.7% • Attractive returns on 20.3% 19.9% 19.5% 18.8% equity 16.6% • ROATCE measure 11.4% 16.3% appropriately captures 8.0% 13.3% 13.1% 13.0% how investors are 11.4% 12.8% 8.3% compensated for 6.6% 1.1%0.9% intangibles 2016 2017 2018 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 ROATCE 2 ROE ex. Unrealized Gains on Fixed Maturities 3 ¹ Non-GAAP financial measure; please see reconciliation in appendix on pages 23-32 2 Return on average tangible common equity (rolling 5 point avg.); please see reconciliation in appendix on pages 23-32 Earnings Call Presentation – 2Q 2020 10 3 Return on average shareholder’s equity excluding unrealized gains on fixed maturities (rolling 5 point avg.); please see reconciliation in appendix on pages 23-32

Specialty Property & Casualty Insurance Segment1 Growth continues to outperform market trends; solid margins Key Highlights (ex. premium credits) PPA Written Premium Population CAGR TTM YoY • 6.5% growth in policies in-force, 7.5% excluding State Groupings ($ million) Growth ’16-’19 Est. ’20-’30 Classic Collectors, compared to 2Q’19 California $2,025 4.5% 0.3% 0.8% • Earned premiums increased 10%, excluding the Florida / Texas $791 28.2% 1.3% 1.6% impact of premium credits Expansion States $200 36.4% 1.0% 1.1% Other $63 - 0.3% 0.4% • Long-term outlook remains attractive; significant Total $3,079 11.8% growth opportunities at solid margins US 0.6% Hispanic 1.6% Key Metrics Change ($ in millions) 2Q’20 to 2Q’19 Underlying Combined Ratio¹ (%) Earned Premiums $759 (0.9)% Earned Premiums (ex. premium credit) $846 10.4% 93.1 93.1 93.1 Underlying Loss & LAE Ratio2 67.8% (760)bps 93.3 92.3 92.7 92.0 91.0 Underlying Expense Ratio2 20.6% 280 bps 90.7 88.5 Policies In-Force (000) 1,902 6.5% 2Q19 3Q19 4Q19 1Q20 2Q20 Policies In-Force ex. Classic Collectors (000) 1,877 7.5% QTD YTD Strength of franchise continues to create value for policyholders and shareholders Source: Population growth sources include U.S. Census Bureau and The Association Institute ¹ As adjusted, including legacy Infinity in all prior periods Earnings Call Presentation – 2Q 2020 11 2 Non-GAAP financial measure; see reconciliation in appendix on pages 23-32; excludes impact of purchase accounting

Preferred Property & Casualty Insurance Segment Efforts to bring the Preferred segment to target profitability are ongoing Key Highlights • Underlying combined ratio decreased to 84.4% for the quarter; 88.5% on a year-to-date basis • Auto underlying combined ratio improved due to macro trends and ongoing profit improvement actions - ~$9 million of adverse development related to increase demand notices; isolated to small portion of auto book • Home & Other underlying combined ratio improvement driven by underwriting, pricing, and exposure enhancements - Seasonally elevated catastrophe activity (~29 points) in-line with 2Q19 experience; year-to-date catastrophe experience meaningfully below 2019 levels Underlying Combined Ratio¹ Key Metrics Change ($ in millions) 2Q’20 to 2Q’19 (%) 100.4 100.2 104.5 Auto 97.5 85.7 88.6 83.0 82.9 83.5 77.8 Earned Premiums $99 (15.9)% Earned Premiums ex. Prem. Credit $112 (5.2)% Policies In-Force (000) 232 (9.8)% Home & Other Earned Premiums $65 (8.6)% 2Q19 3Q19 4Q19 1Q20 2Q20 Policies In-Force (000) 224 (9.2)% Auto Home & Other Realizing benefits from ongoing profitability improvement actions ¹ Non-GAAP financial measure; please see reconciliation in appendix on pages 23-32 Earnings Call Presentation – 2Q 2020 12

Life & Health Insurance Segment Impacted by COVID-19 related items Key Highlights • Net operating income impacted by broad macro environmental trends including: - Increased mortality experience; largely in-line with country-wide trends - Lower morbidity benefits expense - Net investment income pressure largely related to alternative investment portfolio • Operating model and agents are well equipped to handle the current environment Revenues1 Change Key Metrics $216 $213 $216 $214 $207 ($ in millions) 2Q’20 to 2Q’19 (MM) $54 $53 $55 $51 L&H $44 Net Operating Income $16 21.1% Life $162 $161 $161 $163 $163 Face Value of In-Force $19,603 (1.0)% Policies In-Force (000) 3,390 (3.3)% 2Q19 3Q19 4Q19 1Q20 2Q20 Earned Premiums Net Investment Income² Long-term underlying trends remain consistent; provides diversified cash flow generation Note: Chart may not balance due to rounding ¹ Excludes other income Earnings Call Presentation – 2Q 2020 13 2 Please see reconciliation of COLI’s inclusion in net investment income on page 25

Potential Pandemic-Related Impacts on Our Business COVID-19 driven uncertainty creates fluid economic and operating environment Specialty and Preferred Auto Businesses • Movement in and out of state recovery phases will impact customer behavior • Biggest impacts of state closures/restrictions include shopping behavior and economic health Life and Health Segment • National mortality experience evolving with the spread of COVID-19; expect slightly increased mortality results through 2020 Investment Income • Interest rates lower for longer • Increased market volatility driven by COVID-19 uncertainty Mitigating Factors • High quality balance sheet with strong capital and liquidity positions • Investment portfolio is diversified and remains supportive of business activities (i.e., duration, risk profile) • Diversified businesses provide stable cash flows and consistent returns Strong balance sheet and diversified model are sources of strength for all of our stakeholders Earnings Call Presentation – 2Q 2020 14

Appendix Earnings Call Presentation – 2Q 2020 15

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 ~$13B ~6.4M ~30,000 ~9,200 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 – 2Q 2020 16

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 – 2Q 2020 17

Investment Portfolio Exposure to COVID-19 Impacted Categories Fixed income exposure to COVID-19 industry sectors is manageable $140 1.8% 1.7% 1.6% $120 1.4% $100 1.1% 1.2% $80 1.0% 1.0% 0.9% $126 0.8% $ Amount (MM) $ Amount $60 0.6% $85 0.5% $40 0.5% 0.5% Portfolio Maturity % Fixed of $71 $68 0.4% 0.3% $20 $35 $38 $36 0.2% 0.1% 0.0% 0.2% $20 0.1% 0.1% $10 $2 $13 $0 $4 $4 0.0% AA A BBB High A BBB High BBB High AA A BBB High Yield Yield Yield Yield Energy Retail Leisure Transportation ($55MM | ($259MM | 3% of Port.) ($173MM | 2% of Port.) ($22MM | <1% of Port.) 1% of Port.) Exposure to COVID-19 sectors is well diversified across high quality assets; less than 1% of fixed maturity portfolio is in high yield investments in COVID-19 exposed sectors Earnings Call Presentation – 2Q 2020 18

Below Investment Grade Fixed Maturities Portfolio of $497 Million Portfolio is diversified across different asset types $250 3.0% 2.7% 2.5% $200 2.0% $150 1.5% 1.5% $100 $204 1.1% 1.0% 0.8% $114 Portfolio Maturity % Fixed of $50 Below Investment Grade $ $ Amount (MM) Grade Below Investment $84 0.5% $59 0.3% 0.1% 0.0% 0.1% $22 $4 $9 $1 $0 0.0% Private Private CLO Public Munis Private Foreign Non-Agency Senior Junior Corp Corp Government MBS Below investment grade portfolio represents roughly 7% of our fixed maturities portfolio Earnings Call Presentation – 2Q 2020 19

CLO Composition ($711 Million) CLOs represent 7.5% of investment portfolio $600 80.0% 71.3% 70.0% $500 60.0% $400 50.0% $300 40.0% $ Amount (MM) $ Amount $507 Portfolio % CLO of 30.0% $200 20.0% $100 12.6% 11.7% 10.0% $89 2.0% 2.3% $84 $0 $15 $17 0.0% AAA AA A BBB High Yield Well-diversified CLO book with 86% of holdings classified ‘A’ or higher Earnings Call Presentation – 2Q 2020 20

Alternative Investment Portfolio of $505 Million Portfolio is highly diversified with strategies focused on private credit, private equity and hedge funds Private Credit Funds1 3% of total investments (64% of Alts portfolio) $66.6 Diversification across date of investment, industry and geography Private Equity Funds1 ~ 1% of total investments (23% of Alts portfolio) $115.8 $322.8 Diversification across date of investment, industry and geography Hedge Funds < 1% of total investments (13% of Alts portfolio) Diversified in strategies with focus on minimum correlation to public markets and additional liquidity relative to Private Credit and Private Private Credit Funds¹ Private Equity Funds¹ Hedge Funds Equity strategies Alternative investment portfolio is 5% of total investments and diversified across underlying investment strategies with primary focus on current income generation ¹ Includes small portion of direct investments (non-funds). Earnings Call Presentation – 2Q 2020 21

2020 Reinsurance Program Both programs were renewed with no significant change Catastrophe Reinsurance Program (Multi-Year) Aggregate Catastrophe Program • Same coverage as 2019 program 1-Year Term Placed 1/1/20 • Intended to reduce volatility from high- $25M xs $250M 95% Placed frequency, low severity events • Coverage 3-Year Term 3-Year Term 3-Year Term – $50 million in excess of $60 million Placed 1/1/18 Placed 1/1/19 Placed 1/1/20 5% Retention – $500k deductible per storm $100M xs $150M $100M xs $150M $100M xs $150M – Perils: All perils, excluding named storms 31.67% Placed 31.67% Placed 31.67% Placed (e.g., hurricanes) and earthquakes of $225M $225M of – Covered Line: Property, Fire and Dwelling Retention 3-Year Term 3-Year Term 3-Year Term xs Placed 1/1/18 Placed 1/1/19 Placed 1/1/20 $50M 2020 Aggregate Catastrophe $100M xs $50M $100M xs $50M $100M xs $50M Reinsurance Program 31.67% Placed 31.67% Placed 31.67% Placed Retention 100% of first $50M • Policy placed at 1/1/20 similar to prior three years • Total coverage: 95% of $225 million excess of $50 million Earnings Call Presentation – 2Q 2020 22

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. 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. For the Periods Ended 2Q'20 1Q'20 4Q'19 3Q'19 2Q'19 1Q'19 2018 2017 2016 Book Value Per Share $ 64.15 $ 57.54 $ 59.59 $ 58.43 $ 55.34 $ 51.13 $ 47.10 $ 41.11 $ 38.52 Less: Net Unrealized Gains on Fixed Maturities Per Share (9.02) (4.01) (6.51) (6.92) (5.52) (3.72) (1.70) (5.54) (3.52) Book Value Per Share Excluding Net Unrealized Gains on Fixed Maturities $ 55.13 $ 53.53 $ 53.08 $ 51.51 $ 49.82 $ 47.41 $ 45.40 $ 35.57 $ 35.00 Less: Goodwill (17.06) (17.04) (16.72) (16.71) (16.74) (17.12) (17.18) (6.28) (6.30) Book Value Per Share Ex. Net Unrealized Gains on Fixed Maturities and Goodwill $ 38.07 $ 36.49 $ 36.36 $ 34.80 $ 33.08 $ 30.29 $ 28.22 $ 29.29 $ 28.70 Earnings Call Presentation – 2Q 2020 23

Non-GAAP Financial Measures Return on Equity For the Periods Ended 2Q'20 1Q'20 4Q'19 3Q'19 2Q'19 1Q'19 2018 2017 2016 Rolling 12 Month Return on Average Shareholders' Equity (5 Point Avg) 11.4% 11.8% 14.8% 12.1% 12.4% 10.8% 7.7% 5.9% 0.8% Less: Net Unrealized Gains on Fixed Maturities 1.4% 1.2% 1.5% 1.0% 0.9% 0.6% 0.6% 0.7% 0.1% Rolling 12 Month Return on Average Shareholders' Equity Excluding Net Unrealized 12.8% 13.0% 16.3% 13.1% 13.3% 11.4% 8.3% 6.6% 0.9% Gains on Fixed Maturities (5 Point Avg) Less: Goodwill 6.0% 6.5% 8.4% 7.2% 6.6% 5.2% 3.1% 1.4% 0.2% Rolling 12 Month Return on Average Shareholders' Equity Excluding Net Unrealized 18.8% 19.5% 24.7% 20.3% 19.9% 16.6% 11.4% 8.0% 1.1% Gains on Fixed Maturities and Goodwill (5 Point Avg) Earnings Call Presentation – 2Q 2020 24

Non-GAAP Financial Measures Reconciliation of COLI investment into Net Investment Income. Prior to 1Q 2020, COLI was reported in “Other Income”. Starting in the 1Q 2020, COLI was reported in net investment income. For the Periods Ended 4Q'19 3Q'19 2Q'19 Reported Net Investment Income $ 93.9 $ 91.7 $ 96.0 COLI Investment Income 2.8 2.8 1.2 Total Adjusted Net Investment Income $ 96.7 $ 94.5 $ 97.2 Reported Pre-Tax Equivalent Book Yield 4.5% 4.4% 4.7% Impact of Including COLI on Weighted Average Pre-Tax Equivalent Book Yield 0.1% 0.1% 0.0% Total Pre-Tax Equivalent Book Yield 4.6% 4.6% 4.7% Reported Life and A&H Net Investment Income $ 52.0 $ 49.7 $ 53.0 Life and A&H COLI Investment Income 2.9 2.8 1.2 Total Adjusted Life and A&H Net Investment Income $ 54.9 $ 52.5 $ 54.2 Earnings Call Presentation – 2Q 2020 25

Non-GAAP Financial Measures Adjusted Consolidated Net Operating Income is an after-tax, non-GAAP financial measure computed by excluding from Net Income 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) impairment losses 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 Net Income. 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 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 – 2Q 2020 26

Non-GAAP Financial Measures Diluted Adjusted Consolidated Net Operating Income 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 Net Income Per Unrestricted Share. Kemper believes that Diluted Adjusted Consolidated Net Operating Income 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, impairment losses related to investments, acquisition related transaction, integration and other costs and loss from early extinguishment of debt 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 2Q20 1Q20 4Q19 3Q19 2Q19 Net Income - Diluted $ 1.91 $ 0.95 $ 1.85 $ 1.91 $ 1.84 Net (Income) Loss From: Change in Fair Value of Equity & Convertible Securities (0.86) 1.39 (0.46) (0.11) (0.30) Net Realized Gains on Sales of Investments (0.14) (0.19) (0.03) (0.02) (0.25) Impairment Losses 0.08 0.14 0.02 0.02 0.08 Acquisition Related Transaction, Integration and Other Costs 0.21 0.14 0.07 0.06 0.01 Loss from Early Extinguishment of Debt - - - 0.07 - Adj. Consolidated Net Operating Income - Diluted $ 1.20 $ 2.43 $ 1.45 $ 1.93 $ 1.38 Earnings Call Presentation – 2Q 2020 27

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. 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. Earnings Call Presentation – 2Q 2020 28

Non-GAAP Financial Measures Underlying Combined Ratio – Continued For the Three Months Ended 2Q20 1Q20 4Q19 3Q19 2Q19 Specialty P&C Insurance Combined Ratio as Reported 91.0% 94.5% 93.8% 91.6% 93.5% Current Year Catastrophe Loss and LAE Ratio (0.6%) 0.0% (0.5%) (0.3%) (0.6%) Prior Years Non-Catastrophe Losses and LAE (1.3%) (0.6%) 0.5% 0.5% 1.1% Prior Years Catastrophe Losses and LAE Ratio 0.0% 0.0% 0.0% 0.0% 0.0% Underlying Combined Ratio 89.1% 93.9% 93.8% 91.8% 94.0% Preferred P&C Insurance Combined Ratio as Reported 102.2% 92.6% 97.5% 92.4% 103.1% Current Year Catastrophe Loss and LAE Ratio (12.6%) (2.7%) (6.4%) (6.2%) (12.0%) Prior Years Non-Catastrophe Losses and LAE (5.0%) 1.8% 3.8% 0.6% 2.3% Prior Years Catastrophe Losses and LAE Ratio (0.2%) 0.6% 1.7% 8.1% 0.5% Underlying Combined Ratio 84.4% 92.3% 96.6% 94.9% 93.9% Preferred Auto Combined Ratio as Reported 100.1% 99.5% 103.6% 101.5% 98.7% Current Year Catastrophe Loss and LAE Ratio (2.0%) (0.2%) (1.3%) (1.8%) (1.4%) Prior Years Non-Catastrophe Losses and LAE (9.8%) (1.9%) 2.4% 0.4% 3.1% Prior Years Catastrophe Losses and LAE Ratio 0.3% 0.1% (0.2%) 0.1% 0.0% Underlying Combined Ratio 88.6% 97.5% 104.5% 100.2% 100.4% Preferred Home & Other Combined Ratio as Reported 105.4% 80.7% 87.0% 77.1% 110.5% Current Year Catastrophe Loss and LAE Ratio (28.8%) (7.0%) (15.3%) (13.7%) (29.6%) Prior Years Non-Catastrophe Losses and LAE 2.3% 8.3% 6.3% 0.8% 0.8% Prior Years Catastrophe Losses and LAE Ratio (1.1%) 1.5% 4.9% 21.5% 1.3% Underlying Combined Ratio 77.8% 83.5% 82.9% 85.7% 83.0% Earnings Call Presentation – 2Q 2020 29

Non-GAAP Financial Measures As Adjusted or As Adjusted for Acquisition amounts are non-GAAP financial measures. For the periods subsequent to acquisition, the three months ended June 30, 2020 and June 30, 2019 the As Adjusted or As Adjusted for Acquisition 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 Three Months Ended 30-Jun-20 30-Jun-19 Net Income Kemper - GAAP As Reported $ 126.1 $ 122.1 Less: Impact of Purchase Accounting (4.4) (4.2) As Adjusted 1 $ 130.5 $ 126.3 As Adjusted 1 - Per Diluted Share $ 1.97 $ 1.90 Adjusted Consolidated Net Operating Income (Loss)1 Kemper $ 79.2 $ 91.5 Less: Impact of Purchase Accounting (4.4) (4.2) As Adjusted 1 $ 83.6 $ 95.7 As Adjusted 1 - Per Diluted Share $ 1.26 $ 1.44 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 – 2Q 2020 30

Non-GAAP Financial Measures As Adjusted for Acquisition – Continued Specialty P&C Insurance Segment Three Months Ended 30-Jun-20 31-Mar-20 31-Dec-19 30-Sep-19 30-Jun-19 Earned Premiums Kemper Specialty P&C - GAAP As Reported $ 759.0 $ 822.5 $ 799.7 $ 783.4 $ 766.0 Current Year Non-CAT Losses and LAE Kemper Specialty P&C - GAAP As Reported $ 515.8 $ 619.8 $ 599.5 $ 579.4 $ 579.2 Less: Impact of Purchase Accounting Amortization of Fair Value Adjustment to Infinity's Unpaid Loss and LAE 0.8 0.7 0.8 0.8 1.2 As Adjusted 1 $ 515.0 $ 619.1 $ 598.7 $ 578.6 $ 578.0 Insurance Expenses Kemper Specialty P&C - GAAP As Reported $ 161.2 $ 152.1 $ 150.7 $ 139.2 $ 140.9 Less: Impact of Purchase Accounting 4.5 5.2 5.2 7.3 4.4 As Adjusted 1 $ 156.7 $ 146.9 $ 145.5 $ 131.9 $ 136.5 As Adjusted 1 Underlying Combined Ratio As Adjusted 1 Underlying Loss & LAE Ratio 67.8% 75.3% 74.9% 73.9% 75.5% As Adjusted 1 Expense Ratio 20.6% 17.9% 18.2% 16.8% 17.8% As Adjusted 1 Underlying Combined Ratio 88.5% 93.1% 93.1% 90.7% 93.3% 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 – 2Q 2020 31

Non-GAAP Financial Measures As Adjusted for Acquisition – Continued Specialty Personal Automobile Insurance Three Months Ended 30-Jun-20 31-Mar-20 31-Dec-19 30-Sep-19 30-Jun-19 Earned Premiums Kemper Specialty Auto - GAAP As Reported $ 689.8 $ 753.2 $ 733.1 $ 719.2 $ 703.7 Current Year Non-CAT Losses and LAE Kemper Specialty Auto - GAAP As Reported $ 472.4 $ 576.0 $ 557.5 $ 538.2 $ 537.0 Less: Impact of Purchase Accounting Amortization of Fair Value Adjustment to Infinity's Unpaid Loss and LAE 0.6 0.6 0.6 0.6 0.9 As Adjusted 1 $ 471.8 $ 575.4 $ 556.9 $ 537.6 $ 536.1 Insurance Expenses Kemper Specialty Auto - GAAP As Reported $ 146.7 $ 139.2 $ 138.1 $ 128.4 $ 128.9 Less: Impact of Purchase Accounting 3.5 4.5 4.5 6.4 3.9 As Adjusted 1 $ 143.2 $ 134.7 $ 133.6 $ 122.0 $ 125.0 As Adjusted 1 Underlying Combined Ratio As Adjusted 1 Underlying Loss & LAE Ratio 68.4% 76.4% 76.0% 74.7% 76.2% As Adjusted 1 Expense Ratio 20.8% 17.9% 18.2% 17.0% 17.8% As Adjusted 1 Underlying Combined Ratio 89.2% 94.3% 94.2% 91.7% 93.9% 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 – 2Q 2020 32

XML

Document and Entity Information	Aug. 03, 2020
Cover [Abstract]
Document Type	8-K
Document Period End Date	Aug. 03, 2020
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