EX-99.2 3 kmpr202312312023ex992suppl.htm EX-99.2 Document

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Investor Supplement
Fourth Quarter 2023

Caution Regarding Forward-Looking Statements

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

•changes in the frequency and severity of insurance claims;
•claim development and the process of estimating claim reserves;
•the impacts of inflation;
•changes in the interest rate environment;
•supply chain disruption;
•product demand and pricing;
•effects of governmental and regulatory actions;
•litigation outcomes and trends;
•investment risks;
•cybersecurity risks;
•impact of catastrophes; and
•other risks and uncertainties detailed in Kemper’s Annual Report on Form 10-K and subsequent filings with the Securities and Exchange Commission (“SEC”).

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





Kemper Corporation
Investor Supplement
Fourth Quarter 2023
Table of Contents
 
 Page
Consolidated Financial Highlights2-3
Consolidated Statements of Income (Loss)
4
Consolidated Balance Sheets5-6
Consolidated Statements of Cash Flows7-8
Capital Metrics9-10
Debt Outstanding, FHLB Advances and Ratings
11
Adjusted Segment Summary Results:
Revenues12
Adjusted Operating Income (Loss)13
Adjusted Net Operating Income (Loss)13
Catastrophe Frequency and Severity14-15
Specialty Property & Casualty Insurance Segment - Results of Operations and Selected Financial Information16-17
Personal Automobile Insurance18
Commercial Automobile Insurance19
Life Insurance Segment - Results of Operations and Selected Financial Information20-21
Life Insurance22
Accident and Health Insurance22
Property Insurance23
Expenses24
Details of Investment Performance25
Details of Invested Assets26-27
Investment Concentration28
Municipal Bond Securities29
Investments in Limited Liability Companies and Limited Partnerships30
Definitions of Non-GAAP Financial Measures31-34














Kemper Corporation
Consolidated Financial Highlights
(Dollars in Millions, Except Per Share Amounts)
(Unaudited)
 Three Months EndedYear Ended
Dec 31,
2023		Sep 30, 2023Jun 30, 2023Mar 31, 2023Dec 31, 2022Sep 30, 2022Jun 30, 2022Mar 31, 2022Dec 31,
2023		Dec 31,
2022
For Period Ended
Earned Premiums
$1,063.8 $1,117.8 $1,166.9 $1,180.9 $1,264.9 $1,290.9 $1,337.6 $1,320.0 $4,529.4 $5,213.4 
Net Investment Income
104.6 107.0 106.3 101.8 106.3 97.8 118.5 100.0 419.7 422.6 
Change in Value of Alternative Energy Partnership Investments0.6 0.8 0.8 0.7 1.3 0.4 (4.9)(16.7)2.9 (19.9)
Other Income1.9 2.4 1.7 1.2 1.9 4.0 0.9 2.4 7.2 9.2 
Income (Loss) from Change in Fair Value of Equity and Convertible Securities(2.2)2.8 2.4 1.7 — (11.2)(40.5)(28.2)4.7 (79.9)
Net Realized Investment (Losses) Gains18.5 (31.4)(15.3)8.5 0.2 (20.4)6.1 (7.4)(19.7)(21.5)
Investment and Other Income123.4 81.6 95.9 113.9 109.7 70.6 80.1 50.1 414.8 310.5 
Total Revenues
$1,187.2 $1,199.4 $1,262.8 $1,294.8 $1,374.6 $1,361.5 $1,417.7 $1,370.1 $4,944.2 $5,523.9 
Net Income (Loss)
$51.3 $(146.4)$(97.1)$(80.1)$(53.3)$(74.8)$(72.2)$(86.3)$(272.3)$(286.6)
Less: Net Loss attributable to Noncontrolling Interest(0.1)(0.1)— — — — — — (0.2)— 
Net Income (Loss) attributable to Kemper Corporation
$51.4 $(146.3)$(97.1)$(80.1)$(53.3)$(74.8)$(72.2)$(86.3)$(272.1)$(286.6)
Adjusted Consolidated Net Operating Income (Loss)1
$50.5 $(27.8)$(14.2)$(55.7)$(23.5)$(27.0)$(20.4)$(45.5)$(47.2)$(116.4)
Per Unrestricted Common Share Amounts:
Basic:
Net Income (Loss) attributable to Kemper Corporation per Unrestricted Share:
$0.80 $(2.28)$(1.52)$(1.25)$(0.84)$(1.17)$(1.13)$(1.36)$(4.25)$(4.50)
Adjusted Consolidated Net Operating Income (Loss)1
$0.79 $(0.44)$(0.22)$(0.87)$(0.36)$(0.43)$(0.32)$(0.71)$(0.74)$(1.82)
Diluted:
Net Income (Loss) attributable to Kemper Corporation per Unrestricted Share:
$0.80 $(2.28)$(1.52)$(1.25)$(0.84)$(1.17)$(1.13)$(1.36)$(4.25)$(4.50)
Adjusted Consolidated Net Operating Income (Loss)1
$0.78 $(0.44)$(0.22)$(0.87)$(0.36)$(0.43)$(0.32)$(0.71)$(0.74)$(1.82)
Dividends Paid to Shareholders Per Share
$0.31 $0.31 $0.31 $0.31 $0.31 $0.31 $0.31 $0.31 $1.24 $1.24 
Return on Shareholders' Equity8.4 %(24.0)%(15.1)%(12.1)%(7.9)%(10.8)%(9.9)%(11.3)%(10.7)%(10.0)%
Return on Tangible Shareholders' Equity1
12.7 %(35.4)%(22.4)%(17.7)%(11.4)%(15.3)%(14.2)%(16.3)%(15.9)%(14.4)%
1In the fourth quarter of 2023, we simplified our presentation to show return on shareholders’ equity and adjusted return on shareholders equity instead of the multiple return on equity calculations that were historically provided. Adjusted return on equity is a non-GAAP Financial Measure and is defined on page 33. In addition, we changed our methodology for the calculations of quarterly and year-to-date return on equity results on interim periods to include (1) a numerator that reflects the annualization of quarterly results rather than using results on a rolling twelve month basis and (2) a denominator that reflects average shareholders' equity for the period rather than using a 5-point average. Average shareholders' equity for the three months ended is the simple average of the beginning and ending balances for the period. Average shareholders equity on a year-to-date basis is the (a) the sum of total shareholders’ equity at the beginning of the year and the ending balance for each quarter within that year divided by (b) the number of quarters in the period presented plus one. There were no changes to the calculations of return on shareholders' equity for full year results. We believe this change in methodology provides clearer information regarding the Company’s results. The prior period amounts presented above have been updated to reflect this change in methodology.
2

Kemper Corporation
Consolidated Financial Highlights
(Dollars in Millions, Except Per Share Amounts)
(Unaudited)
As of
Dec 31,
2023		Sep 30, 2023Jun 30, 2023Mar 31, 2023Dec 31, 2022Sep 30, 2022Jun 30, 2022Mar 31, 2022
At Period End
Total Assets
$12,742.7 $12,549.3 $13,096.3 $13,403.7 $13,313.6 $13,399.9 $13,964.2 $14,667.7 
Insurance Reserves
$6,102.9 $5,822.6 $6,043.9 $6,120.7 $6,033.1 $5,940.1 $6,343.5 $6,864.3 
Debt
$1,389.2 $1,388.6 $1,388.1 $1,387.5 $1,386.9 $1,386.4 $1,385.8 $1,385.2 
Kemper Corporation Shareholders’ Equity$2,505.2 $2,361.3 $2,512.2 $2,646.9 $2,670.6 $2,694.5 $2,844.1 $2,969.2 
Kemper Corporation Shareholders’ Equity Excluding Goodwill1,2
$1,254.5 $1,110.6 $1,261.5 $1,346.6 $1,370.3 $1,395.7 $1,532.1 $1,657.2 
Common Shares Issued and Outstanding (In Millions)
64.112 64.081 64.054 63.982 63.913 63.884 63.850 63.800 
Book Value Per Share2
$39.08 $36.85 $39.22 $41.37 $41.79 $42.18 $44.54 $46.54 
Book Value Per Share Excluding Goodwill1,2
$19.57 $17.33 $19.69 $21.05 $21.44 $21.85 $24.00 $25.97 
Book Value Per Share Excluding Net Unrealized Losses on Fixed Maturities and Changes in the Discount Rate on Future Life Policyholder Benefits1,2
$44.90 $44.45 $46.18 $47.93 $49.23 $50.16 $51.76 $53.11 
Book Value Per Share Excluding Net Unrealized Losses on Fixed Maturities, Changes in the Discount Rate on Future Life Policyholder Benefits and Goodwill1,2
$25.39 $24.94 $26.66 $27.61 $28.88 $29.83 $31.21 $32.55 
Debt to Total Capitalization2
35.7 %37.0 %35.6 %34.4 %34.2 %34.0 %32.8 %31.8 %
1 Non-GAAP Financial Measure. See pages 31-34 for definition.
2 See Capital Metrics on pages 9-10 for detail calculations.
3

Kemper Corporation
Consolidated Statements of Income (Loss)
(Dollars in Millions, Except Per Share Amounts)
(Unaudited)
 Three Months EndedYear Ended
 Dec 31,
2023		Sep 30, 2023Jun 30, 2023Mar 31, 2023Dec 31, 2022Sep 30, 2022Jun 30, 2022Mar 31, 2022Dec 31,
2023		Dec 31,
2022
Revenues:
Earned Premiums$1,063.8 $1,117.8 $1,166.9 $1,180.9 $1,264.9 $1,290.9 $1,337.6 $1,320.0 $4,529.4 $5,213.4 
Net Investment Income104.6 107.0 106.3 101.8 106.3 97.8 118.5 100.0 419.7 422.6 
Change in Value of Alternative Energy Partnership Investments0.6 0.8 0.8 0.7 1.3 0.4 (4.9)(16.7)2.9 (19.9)
Other Income1.9 2.4 1.7 1.2 1.9 4.0 0.9 2.4 7.2 9.2 
(Loss) Income from Change in Fair Value of Equity and Convertible Securities(2.2)2.8 2.4 1.7 — (11.2)(40.5)(28.2)4.7 (79.9)
Net Realized Investment Gains (Losses)19.7 (30.3)(14.4)6.4 3.9 (12.1)11.0 1.5 (18.6)4.3 
Impairment Losses(1.2)(1.1)(0.9)2.1 (3.7)(8.3)(4.9)(8.9)(1.1)(25.8)
Total Revenues1,187.2 1,199.4 1,262.8 1,294.8 1,374.6 1,361.5 1,417.7 1,370.1 4,944.2 5,523.9 
Expenses:
Policyholders’ Benefits and Incurred Losses and Loss Adjustment Expenses808.1 975.2 984.7 1,052.0 1,073.0 1,085.3 1,151.1 1,123.2 3,820.0 4,432.6 
Insurance Expenses258.0 259.0 266.1 269.3 288.0 300.5 307.7 304.8 1,052.4 1,201.0 
Loss from Early Extinguishment of Debt— — — — — — — 3.7 — 3.7 
Interest and Other Expenses57.6 156.0 78.3 77.4 86.5 63.5 53.5 54.1 369.3 257.6 
Goodwill Impairment— — 49.6 — — — — — 49.6 — 
Total Expenses1,123.7 1,390.2 1,378.7 1,398.7 1,447.5 1,449.3 1,512.3 1,485.8 5,291.3 5,894.9 
Income (Loss) before Income Taxes63.5 (190.8)(115.9)(103.9)(72.9)(87.8)(94.6)(115.7)(347.1)(371.0)
Income Tax (Expense) Benefit(12.2)44.4 18.8 23.8 19.6 13.0 22.4 29.4 74.8 84.4 
Net Income (Loss)51.3 (146.4)(97.1)(80.1)(53.3)(74.8)(72.2)(86.3)(272.3)(286.6)
Less: Net Income (Loss) attributable to Noncontrolling Interest
(0.1)(0.1)— — — — — — (0.2)— 
Net Income (Loss) attributable to Kemper Corporation
$51.4 $(146.3)$(97.1)$(80.1)$(53.3)$(74.8)$(72.2)$(86.3)$(272.1)$(286.6)
Net Income (Loss) attributable to Kemper Corporation per Unrestricted Share:
Basic$0.80 $(2.28)$(1.52)$(1.25)$(0.84)$(1.17)$(1.13)$(1.36)$(4.25)$(4.50)
Diluted$0.80 $(2.28)$(1.52)$(1.25)$(0.84)$(1.17)$(1.13)$(1.36)$(4.25)$(4.50)
Dividends Paid to Shareholders Per Share$0.31 $0.31 $0.31 $0.31 $0.31 $0.31 $0.31 $0.31 $1.24 $1.24 
Weighted Average Unrestricted Common Shares Outstanding (in Millions)64.088 64.057 64.009 63.947 63.888 63.853 63.816 63.744 64.026 63.826 
Weighted-Average Unrestricted Shares and Equivalent Shares Outstanding Assuming Dilution (in Millions)64.566 64.057 64.009 63.947 63.888 63.853 63.816 63.744 64.026 63.826 
 
4

Kemper Corporation
Consolidated Balance Sheets
(Dollars in Millions)
 (Unaudited)
Dec 31,
2023		Sep 30, 2023Jun 30, 2023Mar 31, 2023Dec 31, 2022Sep 30, 2022Jun 30, 2022Mar 31, 2022Dec 31, 2021
Assets:
Investments:
Fixed Maturities at Fair Value$6,881.9 $6,474.5 $6,943.8 $7,189.4 $6,894.8 $6,577.1 $7,218.8 $7,783.9 $7,986.9 
Equity Securities at Fair Value225.8 233.4 247.0 243.6 243.2 322.7 395.0 571.5 830.6 
Equity Method Limited Liability Investments221.7 224.1 225.1 218.7 217.0 226.0 228.9 230.0 241.9 
Alternative Energy Partnerships17.3 17.2 16.8 17.0 16.3 16.9 17.0 22.4 39.6 
Short-term Investments at Cost which Approximates Fair Value520.9 418.5 406.3 278.4 278.4 357.2 230.2 243.8 284.1 
Company-Owned Life Insurance
513.5 506.9 500.5 595.3 586.5 578.6 566.2 556.4 448.1 
Loans to Policyholders
281.2 281.8 281.6 283.1 283.4 283.2 282.3 284.7 286.2 
Other Investments241.9 273.1 275.6 271.8 269.9 274.2 276.9 275.4 270.0 
Total Investments8,904.2 8,429.5 8,896.7 9,097.3 8,789.5 8,635.9 9,215.3 9,968.1 10,387.4 
Cash64.1 110.0 73.6 60.6 212.4 249.2 348.6 297.3 148.2 
Receivables from Policyholders959.5 1,102.6 1,246.3 1,344.0 1,286.6 1,345.8 1,375.1 1,404.5 1,418.7 
Other Receivables200.5 223.4 262.0 249.4 262.6 228.7 206.5 203.4 207.3 
Deferred Policy Acquisition Costs591.6 622.2 646.2 651.5 635.6 645.1 690.1 689.6 688.0 
Goodwill1,250.7 1,250.7 1,250.7 1,300.3 1,300.3 1,298.8 1,312.0 1,312.0 1,312.0 
Current Income Tax Assets64.5 59.5 9.0 15.0 167.6 165.1 200.8 183.0 173.1 
Deferred Income Tax Assets210.4 258.5 208.0 166.0 129.0 113.7 58.7 43.4 6.4 
Assets Held-for-Sale— — — — — 172.8 — — — 
Other Assets492.6 488.7 503.8 519.6 530.0 544.8 557.1 566.4 592.2 
Assets of Consolidated Variable Interest Entity:
Fixed Maturities at Fair Value1.7 1.6 — — — — — — — 
Short-term Investments at Cost which Approximates Fair Value2.0 — — — — — — — — 
Cash— 2.4 — — — — — — — 
Receivables from Policyholders0.7 0.1 — — — — — — — 
Deferred Policy Acquisition Costs0.1 — — — — — — — — 
Deferred Income Tax Assets0.1 — — — — — — — — 
Other Assets— 0.1 — — — — — — — 
Total Assets$12,742.7 $12,549.3 $13,096.3 $13,403.7 $13,313.6 $13,399.9 $13,964.2 $14,667.7 $14,933.3 
5

Kemper Corporation
Consolidated Balance Sheets
(Dollars in Millions)
 (Unaudited)
Dec 31,
2023		Sep 30, 2023Jun 30, 2023Mar 31, 2023Dec 31, 2022Sep 30, 2022Jun 30, 2022Mar 31, 2022Dec 31, 2021
Liabilities and Shareholders’ Equity:
Insurance Reserves:
Life and Health$3,422.4 $3,098.1 $3,363.8 $3,399.6 $3,276.2 $3,219.8 $3,585.1 $4,104.2 $4,662.7 
Property and Casualty2,680.5 2,724.5 2,680.1 2,721.1 2,756.9 2,720.3 2,758.4 2,760.1 2,772.7 
Total Insurance Reserves6,102.9 5,822.6 6,043.9 6,120.7 6,033.1 5,940.1 6,343.5 6,864.3 7,435.4 
Unearned Premiums1,300.8 1,485.1 1,665.2 1,778.0 1,704.4 1,794.8 1,854.4 1,890.5 1,898.7 
Policyholder Contract Liabilities655.7 656.3 700.2 700.6 701.3 704.0 704.5 655.0 504.0 
Deferred Income Tax Liabilities50.6 57.8 — — — — — — — 
Liabilities Held-for-Sale— — — — — 84.8 — — — 
Accrued Expenses and Other Liabilities737.7 777.6 786.7 770.0 817.3 795.3 831.9 903.5 843.6 
Long-term Debt, Current and Non-current, at Amortized Cost1,389.2 1,388.6 1,388.1 1,387.5 1,386.9 1,386.4 1,385.8 1,385.2 1,121.9 
Liabilities of Consolidated Variable Interest Entity:
Unearned Premiums0.5 0.1 — — — — — — — 
Accrued Expenses and Other Liabilities0.3 — — — — — — — — 
Total Liabilities10,237.7 10,188.1 10,584.1 10,756.8 10,643.0 10,705.4 11,120.1 11,698.5 11,803.6 
Kemper Corporation Shareholders’ Equity:
Common Stock6.4 6.4 6.4 6.4 6.4 6.4 6.4 6.4 6.4 
Paid-in Capital1,845.3 1,845.9 1,837.6 1,828.9 1,812.7 1,822.2 1,812.5 1,803.1 1,790.7 
Retained Earnings1,014.3 982.4 1,149.0 1,266.3 1,366.4 1,439.7 1,534.6 1,627.5 1,734.2 
Accumulated Other Comprehensive Loss(360.8)(473.4)(480.8)(454.7)(514.9)(573.8)(509.4)(467.8)(401.6)
Total Kemper Corporation Shareholders’ Equity2,505.2 2,361.3 2,512.2 2,646.9 2,670.6 2,694.5 2,844.1 2,969.2 3,129.7 
Noncontrolling Interest(0.2)(0.1)— — — — — — — 
Total Shareholders’ Equity$2,505.0 $2,361.2 $2,512.2 $2,646.9 $2,670.6 $2,694.5 $2,844.1 $2,969.2 $3,129.7 
Total Liabilities and Shareholders’ Equity$12,742.7 $12,549.3 $13,096.3 $13,403.7 $13,313.6 $13,399.9 $13,964.2 $14,667.7 $14,933.3 
6

Kemper Corporation
Consolidated Statements of Cash Flows
(Dollars in Millions)
 (Unaudited)
 Year Ended
 Dec 31,
2023		Dec 31,
2022
Cash Flows from Operating Activities:
Net Loss
$(272.3)$(286.6)
Adjustments to Reconcile Net Loss to Net Cash (Used in) Provided by Operating Activities
Net Realized Investment Losses (Gains)18.6 (4.3)
Impairment Losses1.1 25.8 
Depreciation and Amortization of Property, Equipment and Software44.4 50.5 
Amortization of Intangible Assets Acquired14.2 20.4 
Settlement Costs Related to Defined Benefit Pension Plan70.2 — 
Loss from Early Extinguishment of Debt— 3.7 
Change in Accumulated Undistributed Earnings of Equity Method Limited Liability Investments(1.1)(9.5)
(Income) Loss from Change in Value of Alternative Energy Partnership Investments(2.9)19.9 
(Increase) Decrease in Value of Equity and Convertible Securities(4.7)79.9 
Goodwill Impairment49.6 — 
Changes in:
Receivables from Policyholders326.4 129.4 
Reinsurance Recoverables12.1 (1.9)
Deferred Policy Acquisition Costs43.9 14.2 
Insurance Reserves(30.8)26.5 
Unearned Premiums(403.1)(183.5)
Income Taxes33.2 (83.6)
Other Assets and Liabilities(33.0)(11.2)
Net Cash (Used in) Provided by Operating Activities(134.2)(210.3)
Cash Flows from Investing Activities:
Proceeds from the Sales, Calls and Maturities of Fixed Maturities673.0 1,295.5 
Proceeds from the Sales or Paydowns of Investments:
Equity Securities149.0 536.0 
Mortgage Loans95.2 91.3 
Other Investments18.3 52.1 
Purchases of Investments:
Fixed Maturities(447.4)(1,815.8)
Equity Securities(44.4)(58.9)
Real Estate Investments(1.0)(3.1)
Company-Owned Life Insurance— (110.0)
Mortgage Loans(104.1)(81.1)
Other Investments(19.8)(13.0)
Net (Purchases) Sales of Short-term Investments(238.4)6.1 
Sale of Infinity Security, Net of Cash Disposed— 14.8 
Acquisition of Software and Long-lived Assets(53.8)(30.8)
Settlement Proceeds from Company-Owned Life Insurance102.2 — 
Other(20.9)8.5 
Net Cash Provided by (Used in) Investing Activities107.9 (108.4)
7

Kemper Corporation
Consolidated Statements of Cash Flows
(Dollars in Millions)
 (Unaudited)
 Year Ended
 Dec 31,
2023		Dec 31,
2022
Net Cash Provided by (Used in) Investing Activities (Carryforward from page 7)
$107.9 $(108.4)
Cash Flows from Financing Activities:
Repayment of Long-term Debt— (280.0)
Proceeds from Issuance of 3.80% Senior Notes due February 23, 2032
— 396.3 
Issuance Fees on 3.80% Senior Notes due February 23, 2032
— (1.2)
Proceeds from Issuance of 5.875% Fixed-Rate Reset Junior Subordinated Debentures Due 2062
— 145.6 
Issuance Fees on 5.875% Fixed-Rate Reset Junior Subordinated Debentures Due 2062
— (0.9)
Proceeds from Policyholder Contract Obligations123.3 335.5 
Repayment of Policyholder Contract Obligations(169.0)(138.2)
Proceeds from Shares Issued under Employee Stock Purchase Plan4.3 4.9 
Dividends and Dividend Equivalents Paid(80.1)(79.7)
Other(0.5)0.6 
Net Cash (Used in) Provided by Financing Activities(122.0)382.9 
Net (decrease) increase in cash(148.3)64.2 
Cash, Beginning of Year212.4 148.2 
Cash, End of Year$64.1 $212.4 
8


Kemper Corporation
Capital Metrics
(Dollars and Shares in Millions, Except Per Share Amounts)
(Unaudited)
 Dec 31,
2023		Sep 30, 2023Jun 30, 2023Mar 31, 2023Dec 31, 2022Sep 30, 2022Jun 30, 2022Mar 31, 2022Dec 31, 2021
Book Value Per Share   
Numerator
Kemper Corporation Shareholders’ Equity$2,505.2 $2,361.3 $2,512.2 $2,646.9 $2,670.6 $2,694.5 $2,844.1 $2,969.2 $3,129.7 
Less: Goodwill(1,250.7)(1,250.7)(1,250.7)(1,300.3)(1,300.3)(1,298.8)(1,312.0)(1,312.0)(1,312.0)
Kemper Corporation Shareholders’ Equity Excluding Goodwill1
$1,254.5 $1,110.6 $1,261.5 $1,346.6 $1,370.3 $1,395.7 $1,532.1 $1,657.2 $1,817.7 
Kemper Corporation Shareholders’ Equity$2,505.2 $2,361.3 $2,512.2 $2,646.9 $2,670.6 $2,694.5 $2,844.1 $2,969.2 $3,129.7 
Less: Net Unrealized Losses on Fixed Maturities
533.8 900.1 640.5 574.2 716.8 782.7 472.2 13.7 (502.6)
Less: Changes in the Discount Rate on Future Life Policyholder Benefits$(160.6)(412.8)(194.4)(154.2)(241.1)(272.8)(11.4)405.5 849.7 
Kemper Corporation Shareholders’ Equity Excluding Net Unrealized Losses on Fixed Maturities and Changes in the Discount Rate on Future Life Policyholder Benefits1
$2,878.4 $2,848.6 $2,958.3 $3,066.9 $3,146.3 $3,204.4 $3,304.9 $3,388.4 $3,476.8 
Less: Goodwill(1,250.7)(1,250.7)(1,250.7)(1,300.3)(1,300.3)(1,298.8)(1,312.0)(1,312.0)(1,312.0)
Kemper Corporation Shareholders’ Equity Excluding Net Unrealized Losses on Fixed Maturities, Changes in the Discount Rate on Future Life Policyholder Benefits and Goodwill1
$1,627.7 $1,597.9 $1,707.6 $1,766.6 $1,846.0 $1,905.6 $1,992.9 $2,076.4 $2,164.8 
Denominator
Common Shares Issued and Outstanding64.112 64.081 64.054 63.982 63.913 63.884 63.850 63.800 63.685 
Book Value Per Share$39.08 $36.85 $39.22 $41.37 $41.79 $42.18 $44.54 $46.54 $49.14 
Book Value Per Share Excluding Goodwill1
$19.57 $17.33 $19.69 $21.05 $21.44 $21.85 $24.00 $25.97 $28.54 
Book Value Per Share Excluding Net Unrealized Losses on Fixed Maturities and Changes in the Discount Rate on Future Life Policyholder Benefits1
$44.90 $44.45 $46.18 $47.93 $49.23 $50.16 $51.76 $53.11 $54.59 
Book Value Per Share Excluding Net Unrealized Losses on Fixed Maturities, Changes in the Discount Rate on Future Life Policyholder Benefits and Goodwill1
$25.39 $24.94 $26.66 $27.61 $28.88 $29.83 $31.21 $32.55 $33.99 
9


Kemper Corporation
Capital Metrics
(Dollars and Shares in Millions, Except Per Share Amounts)
(Unaudited)
Dec 31,
2023		Sep 30, 2023Jun 30, 2023Mar 31, 2023Dec 31, 2022Sep 30, 2022Jun 30, 2022Mar 31, 2022Dec 31, 2021
Debt and Total Capitalization
Debt$1,389.2 $1,388.6 $1,388.1 $1,387.5 $1,386.9 $1,386.4 $1,385.8 $1,385.2 $1,121.9 
Kemper Corporation Shareholders’ Equity2,505.2 2,361.3 2,512.2 2,646.9 2,670.6 2,694.5 2,844.1 2,969.2 3,129.7 
Total Capitalization$3,894.4 $3,749.9 $3,900.3 $4,034.4 $4,057.5 $4,080.9 $4,229.9 $4,354.4 $4,251.6 
Ratio of Debt to Kemper Corporation Shareholders’ Equity55.5 %58.8 %55.3 %52.4 %51.9 %51.5 %48.7 %46.7 %35.8 %
Ratio of Debt to Total Capitalization35.7 %37.0 %35.6 %34.4 %34.2 %34.0 %32.8 %31.8 %26.4 %
Debt$1,389.2 $1,388.6 $1,388.1 $1,387.5 $1,386.9 $1,386.4 $1,385.8 $1,385.2 $1,121.9 
Kemper Corporation Shareholders’ Equity$2,505.2 $2,361.3 $2,512.2 $2,646.9 $2,670.6 $2,694.5 $2,844.1 $2,969.2 $3,129.7 
Less: Accumulated Other Comprehensive Loss
(360.8)(473.4)(480.8)(454.7)(514.9)(573.8)(509.4)(467.8)(401.6)
Kemper Corporation Shareholders’ Equity Excluding Accumulated Other Comprehensive Loss
$2,866.0 $2,834.7 $2,993.0 $3,101.6 $3,185.5 $3,268.3 $3,353.5 $3,437.0 $3,531.3 
Total Capitalization Excluding Accumulated Other Comprehensive Loss
$4,255.2 $4,223.3 $4,381.1 $4,489.1 $4,572.4 $4,654.7 $4,739.3 $4,822.2 $4,653.2 
Ratio of Debt to Kemper Corporation Shareholders’ Equity Excluding Accumulated Other Comprehensive Loss
48.5 %49.0 %46.4 %44.7 %43.5 %42.4 %41.3 %40.3 %31.8 %
Ratio of Debt to Total Capitalization Excluding Accumulated Other Comprehensive Loss
32.6 %32.9 %31.7 %30.9 %30.3 %29.8 %29.2 %28.7 %24.1 %
Parent Company Liquidity3
Kemper Holding Company Cash and Investments1
$464.5 $153.9 $220.3 $240.6 $417.6 $449.8 $275.9 $318.3 $233.9 
Borrowings Available Under Credit Agreement393.0 376.0 460.0 520.0 600.0 600.0 600.0 600.0 400.0 
Parent Company Liquidity$857.5 $529.9 $680.3 $760.6 $1,017.6 $1,049.8 $875.9 $918.3 $633.9 
Capital Returned to Shareholders
Cash Dividends Paid2
$20.2 $20.2 $20.2 $19.4 $20.1 $20.1 $20.6 $19.6 $19.9 
1 Includes Kemper's direct non-insurance subsidiaries
2 Three Months Ended
3 Excludes borrowings available from subsidiaries
 
10

Kemper Corporation
Debt Outstanding, FHLB Advances and Ratings
(Dollars in Millions)
(Unaudited)
Dec 31,
2023		Sep 30, 2023Jun 30, 2023Mar 31, 2023Dec 31, 2022Sep 30, 2022Jun 30, 2022Mar 31, 2022
Kemper Corporation:
Senior Notes at Amortized Cost:
4.350% Senior Notes due February 15, 2025449.6 $449.6 $449.5 $449.4 $449.3 $449.3 $449.2 $449.1 
2.400% Senior Notes due September 30, 2030397.0 396.9 396.8 396.7 396.6 396.5 396.4 396.3 
3.800% Senior Notes due 2032396.0 395.8 395.7 395.6 395.5 395.3 395.2 395.1 
5.875% Fixed-Rate Reset Junior Subordinated Debentures Due 2062 at Amortized Cost146.6 146.3 146.1 145.8 145.5 145.3 145.0 144.7 
Long-term Debt Outstanding$1,389.2 $1,388.6 $1,388.1 $1,387.5 $1,386.9 $1,386.4 $1,385.8 $1,385.2 
Federal Home Loan Bank Advances to Insurance Subsidiaries:
Reported as Policyholder Contract Liabilities:
Federal Home Loan Bank of Chicago$557.4 $557.4 $601.0 $601.0 $601.0 $602.6 $602.8 $553.1 
Reported as Debt Outstanding:
Federal Home Loan Bank of Dallas$— $— $— $— $— $— $— $— 
Federal Home Loan Bank of Chicago$— $— $— $— $— $— $— $— 
Federal Home Loan Bank of San Francisco$— $— $— $— $— $— $— $— 
 A.M. BestMoody’sS&PFitch
As of Date of Financial Supplement
Kemper Debt Ratings:
Senior Unsecured Debtbbb-Baa3BBB-BBB-
Junior Unsecured DebtbbBa1BBBB
Insurance Company Financial Strength Ratings:
Trinity Universal Insurance CompanyA-A3A-A-
United Insurance Company of AmericaA-A3A-A-





11

Kemper Corporation
Segment Revenues
(Dollars in Millions)
(Unaudited)
 Three Months EndedYear Ended
 Dec 31,
2023		Sep 30, 2023Jun 30, 2023Mar 31, 2023Dec 31, 2022Sep 30, 2022Jun 30, 2022Mar 31, 2022Dec 31,
2023		Dec 31,
2022
Revenues:   
Specialty Property & Casualty Insurance:
Earned Premiums:
Personal Automobile$699.3 $724.0 $766.6 $787.9 $830.4 $858.8 $905.8 $901.7 $2,977.8 $3,496.7 
Commercial Automobile166.3 166.4 165.7 156.3 151.2 140.7 137.9 119.9 654.7 549.7 
Total Specialty Property & Casualty Insurance Earned Premiums865.6 890.4 932.3 944.2 981.6 999.5 1,043.7 1,021.6 3,632.5 4,046.4 
Net Investment Income42.6 42.7 44.5 38.5 37.9 33.9 34.0 34.9 168.3 140.7 
Change in Value of Alternative Energy Partnership Investments0.3 0.5 0.4 0.4 0.7 0.3 (2.5)(8.4)1.6 (9.9)
Other Income1.3 1.6 0.7 0.9 1.0 2.3 1.0 1.7 4.5 6.0 
Total Specialty Property & Casualty Insurance Revenues909.8 935.2 977.9 984.0 1,021.2 1,036.0 1,076.2 1,049.8 3,806.9 4,183.2 
Life Insurance:
Earned Premiums:
Life67.3 84.9 84.8 82.2 99.0 84.3 86.8 82.7 319.2 352.8 
Accident and Health5.6 5.8 5.8 5.9 31.4 45.9 45.1 45.8 23.1 168.2 
Property11.1 11.4 11.6 11.2 12.2 11.9 12.1 14.3 45.3 50.5 
Total Life Insurance Earned Premiums84.0 102.1 102.2 99.3 142.6 142.1 144.0 142.8 387.6 571.5 
Net Investment Income47.1 49.4 47.1 49.8 52.6 52.6 61.9 49.4 193.4 216.5 
Change in Value of Alternative Energy Partnership Investments0.1 0.2 0.2 0.2 0.3 0.1 (1.3)(4.4)0.7 (5.3)
Other Income (Loss)0.2 (0.1)0.1 (0.4)0.2 — (0.8)— (0.2)(0.6)
Total Life Insurance Revenues131.4 151.6 149.6 148.9 195.7 194.8 203.8 187.8 581.5 782.1 
Total Segment Revenues1,041.2 1,086.8 1,127.5 1,132.9 1,216.9 1,230.8 1,280.0 1,237.6 4,388.4 4,965.3 
(Loss) Income from Change in Fair Value of Equity and Convertible Securities(2.2)2.8 2.4 1.7 — (11.2)(40.5)(28.2)4.7 (79.9)
Net Realized Investment Gains (Losses)19.7 (30.3)(14.4)6.4 3.9 (12.1)11.0 1.5 (18.6)4.3 
Impairment Losses(1.2)(1.1)(0.9)2.1 (3.7)(8.3)(4.9)(8.9)(1.1)(25.8)
Non-Core Operations
126.7 138.0 145.7 148.0 154.5 161.1 160.7 164.2 558.4 640.5 
Other3.0 3.2 2.5 3.7 3.0 1.2 11.4 3.9 12.4 19.5 
Total Revenues$1,187.2 $1,199.4 $1,262.8 $1,294.8 $1,374.6 $1,361.5 $1,417.7 $1,370.1 $4,944.2 $5,523.9 
 

12

Kemper Corporation
Segment Adjusted Operating Results
(Dollars in Millions)
(Unaudited)
 Three Months EndedYear Ended
 Dec 31,
2023		Sep 30, 2023Jun 30, 2023Mar 31, 2023Dec 31, 2022Sep 30, 2022Jun 30, 2022Mar 31, 2022Dec 31,
2023		Dec 31,
2022
Segment Adjusted Operating Income (Loss):  
Specialty Property & Casualty Insurance$56.6 $(43.2)$(15.0)$(74.7)$(46.5)$(39.2)$(51.0)$(60.2)$(76.3)$(196.9)
Life Insurance19.9 17.5 10.1 14.8 26.5 15.6 23.9 12.0 62.3 78.0 
Total Segment Adjusted Operating Income (Loss)76.5 (25.7)(4.9)(59.9)(20.0)(23.6)(27.1)(48.2)(14.0)(118.9)
Corporate and Other Adjusted Operating Loss(13.7)(13.3)(15.3)(12.9)(15.5)(16.6)(1.6)(14.0)(55.2)(47.7)
Less: Loss before Income Taxes attributable to Noncontrolling Interest(0.2)(0.1)— — — — — — (0.3)— 
Adjusted Consolidated Operating Income (Loss)63.0 (38.9)(20.2)(72.8)(35.5)(40.2)(28.7)(62.2)(68.9)(166.6)
Income (Loss) From:
Change in Fair Value of Equity and Convertible Securities(2.2)2.8 2.4 1.7 — (11.2)(40.5)(28.2)4.7 (79.9)
Net Realized Investment Gains (Losses)19.7 (30.3)(14.4)6.4 3.9 (12.1)11.0 1.5 (18.6)4.3 
Impairment Losses(1.2)(1.1)(0.9)2.1 (3.7)(8.3)(4.9)(8.9)(1.1)(25.8)
Acquisition and Disposition Related Transaction, Integration, Restructuring and Other Costs(18.3)(43.4)(29.5)(29.1)(35.6)(12.7)(9.9)(4.7)(120.3)(62.9)
Debt Extinguishment, Pension Settlement and Other Charges
— (70.2)— — — — — (3.7)(70.2)(3.7)
Goodwill Impairment Charge— — (49.6)— — — — — (49.6)— 
Non-Core Operations
2.7 (9.6)(3.7)(12.2)(2.0)(3.3)(21.6)(9.5)(22.8)(36.4)
Income (Loss) before Income Taxes attributable to Kemper Corporation
$63.7 $(190.7)$(115.9)$(103.9)$(72.9)$(87.8)$(94.6)$(115.7)$(346.8)$(371.0)
Segment Adjusted Net Operating Income (Loss):
Specialty Property & Casualty Insurance$45.3 $(33.2)$(10.8)$(58.4)$(35.1)$(28.7)$(38.9)$(44.7)$(57.1)$(147.4)
Life Insurance15.0 14.7 8.9 13.2 23.0 14.0 20.2 11.6 51.8 68.8 
Total Segment Adjusted Net Operating Income (Loss)60.3 (18.5)(1.9)(45.2)(12.1)(14.7)(18.7)(33.1)(5.3)(78.6)
Corporate and Other Adjusted Net Operating Loss(9.9)(9.4)(12.3)(10.5)(11.4)(12.3)(1.7)(12.4)(42.1)(37.8)
Less: Net Loss attributable to Noncontrolling Interest(0.1)(0.1)— — — — — — (0.2)— 
Adjusted Consolidated Net Operating Income (Loss)
50.5 (27.8)(14.2)(55.7)(23.5)(27.0)(20.4)(45.5)(47.2)(116.4)
Net Income (Loss) From:
Change in Fair Value of Equity and Convertible Securities(1.8)2.3 1.9 1.3 — (8.8)(32.0)(22.3)3.7 (63.1)
Net Realized Investment Gains (Losses)15.6 (22.9)(12.5)5.1 3.1 (9.6)8.7 1.2 (14.7)3.4 
Impairment Losses(1.0)(0.8)(0.8)1.7 (2.9)(6.6)(3.9)(7.0)(0.9)(20.4)
Acquisition and Disposition Related Transaction, Integration, Restructuring and Other Costs(14.4)(34.3)(23.3)(23.0)(29.1)(20.7)(7.8)(3.7)(95.0)(61.3)
Debt Extinguishment, Pension Settlement and Other Charges
— (55.5)— — — — — (2.9)(55.5)(2.9)
Goodwill Impairment Charge— — (45.5)— — — — — (45.5)— 
Non-Core Operations
2.5 (7.3)(2.7)(9.5)(0.9)(2.1)(16.8)(6.1)(17.0)(25.9)
Net Income (Loss) attributable to Kemper Corporation
$51.4 $(146.3)$(97.1)$(80.1)$(53.3)$(74.8)$(72.2)$(86.3)$(272.1)$(286.6)
    
 
13

Kemper Corporation
Catastrophe Frequency and Severity
(Dollars in Millions)
(Unaudited)
Year Ended December 31, 2023
Specialty Property & Casualty Insurance SegmentLife Insurance SegmentNon-Core OperationsConsolidated
Number of EventsLosses and LAENumber of EventsLosses and LAENumber of EventsLosses and LAENumber of EventsLosses and LAE
Range of Losses and LAE Per Event1:
Below $563 $29.4 44 $2.2 67 $50.0 68 $77.7 
$5 - $101 5.1 — — 2 10.0 3 19.0 
$10 - $15— — — — — — — — 
$15 - $20— — — — — — — — 
$20 - $25— — — — — — — — 
Greater Than $25— — — — — — — — 
Total64 $34.5 44 $2.2 69 $60.0 71 $96.7 
Year Ended December 31, 2022
Specialty Property & Casualty Insurance SegmentLife Insurance SegmentNon-Core OperationsConsolidated
Number of EventsLosses and LAENumber of EventsLosses and LAENumber of EventsLosses and LAENumber of EventsLosses and LAE
Range of Losses and LAE Per Event1:
Below $550 $10.8 40 $1.8 60 $49.4 59 $54.6 
$5 - $10— — — — 1 5.1 2 10.2 
$10 - $151 12.2 — — — — 1 14.5 
$15 - $20— — — — — — — — 
$20 - $25— — — — — — — — 
Greater Than $25— — — — — — — — 
Total51 $23.0 40 $1.8 61 $54.5 62 $79.3 
1 Current accident year net incurred catastrophe Losses and LAE only






14

Kemper Corporation
Catastrophe Frequency and Severity (continued)
(Dollars in Millions)
(Unaudited)
Three Months Ended December 31, 2023
Specialty Property & Casualty Insurance SegmentLife Insurance SegmentNon-Core OperationsConsolidated
Number of EventsLosses and LAENumber of EventsLosses and LAENumber of EventsLosses and LAENumber of EventsLosses and LAE
Range of Losses and LAE Per Event1:
Below $56 $2.5 1 $0.3 6 $7.7 7 $10.5 
$5 - $10— — — — — — — — 
$10 - $15— — — — — — — — 
$15 - $20— — — — — — — — 
$20 - $25— — — — — — — — 
Greater Than $25— — — — — — — — 
Total6 $2.5 1 $0.3 6 $7.7 7 $10.5 
Three Months Ended December 31, 2022
Specialty Property & Casualty Insurance SegmentLife Insurance SegmentNon-Core OperationsConsolidated
Number of EventsLosses and LAENumber of EventsLosses and LAENumber of EventsLosses and LAENumber of EventsLosses and LAE
Range of Losses and LAE Per Event1:
Below $511 $(0.1)8 $(0.6)11 $3.7 11 $3.0 
$5 - $10— — — — 1 5.1 1 5.1 
$10 - $15— — — — — — — — 
$15 - $20— — — — — — — — 
$20 - $25— — — — — — — — 
Greater Than $25— — — — — — — — 
Total11 $(0.1)8 $(0.6)12 $8.8 12 $8.1 
1 Current accident year net incurred catastrophe Losses and LAE only
15

Kemper Corporation
Specialty Property & Casualty Insurance Segment
Results of Operations and Selected Financial Information
(Dollars in Millions)
(Unaudited)
 Three Months EndedYear Ended
 Dec 31,
2023		Sep 30, 2023Jun 30, 2023Mar 31, 2023Dec 31, 2022Sep 30, 2022Jun 30, 2022Mar 31, 2022Dec 31,
2023		Dec 31,
2022
Results of Operations    
Net Premiums Written$719.7 $733.0 $830.6 $1,022.1 $922.3 $968.5 $1,019.9 $1,023.7 $3,305.4 $3,934.4 
Total Specialty P&C:
Personal Automobile699.3 724.0 766.6 787.9 830.4 858.8 905.8 901.7 2,977.8 3,496.7 
Commercial Automobile166.3 166.4 165.7 156.3 151.2 140.7 137.9 119.9 654.7 549.7 
Earned Premium$865.6 $890.4 $932.3 $944.2 $981.6 $999.5 $1,043.7 $1,021.6 $3,632.5 $4,046.4 
Net Investment Income42.6 42.7 44.5 38.5 37.9 33.9 34.0 34.9 168.3 140.7 
Change in Value of Alternative Energy Partnership Investments0.3 0.5 0.4 0.4 0.7 0.3 (2.5)(8.4)1.6 (9.9)
Other Income1.3 1.6 0.7 0.9 1.0 2.3 1.0 1.7 4.5 6.0 
Total Revenues909.8 935.2 977.9 984.0 1,021.2 1,036.0 1,076.2 1,049.8 3,806.9 4,183.2 
Incurred Losses and LAE related to:
Current Year:
Non-catastrophe Losses and LAE673.1 712.1 763.9 825.4 859.3 868.0 930.2 911.7 2,974.5 3,569.2 
Catastrophe Losses and LAE2.5 6.2 17.4 8.4 (0.1)14.8 6.2 2.1 34.5 23.0 
Prior Years:
Non-catastrophe Losses and LAE(0.2)78.8 25.0 31.6 10.2 (6.6)(14.4)(3.8)135.2 (14.6)
Catastrophe Losses and LAE0.1 (1.0)(0.9)(0.5)(0.1)0.2 (0.2)0.7 (2.3)0.6 
Total Incurred Losses and LAE675.5 796.1 805.4 864.9 869.3 876.4 921.8 910.7 3,141.9 3,578.2 
Insurance Expenses177.7 182.3 187.5 193.8 198.4 198.8 205.4 199.3 741.3 801.9 
Segment Adjusted Operating Income (Loss)56.6 (43.2)(15.0)(74.7)(46.5)(39.2)(51.0)(60.2)(76.3)(196.9)
Income Tax (Expense) Benefit(11.3)10.0 4.2 16.3 11.4 10.5 12.1 15.5 19.2 49.5 
Total Segment Adjusted Net Operating Income (Loss)$45.3 $(33.2)$(10.8)$(58.4)$(35.1)$(28.7)$(38.9)$(44.7)$(57.1)$(147.4)
Ratios Based On Earned Premiums
Current Year Non-catastrophe Losses and LAE Ratio77.7 %80.0 %81.9 %87.5 %87.6 %86.9 %89.1 %89.2 %82.0 %88.2 %
Current Year Catastrophe Losses and LAE Ratio0.3 0.7 1.9 0.9 — 1.5 0.6 0.2 0.9 0.6 
Prior Years Non-catastrophe Losses and LAE Ratio— 8.8 2.7 3.3 1.0 (0.7)(1.4)(0.4)3.7 (0.4)
Prior Years Catastrophe Losses and LAE Ratio— (0.1)(0.1)(0.1)— — — 0.1 (0.1)— 
Total Incurred Loss and LAE Ratio78.0 89.4 86.4 91.6 88.6 87.7 88.3 89.1 86.5 88.4 
Insurance Expense Ratio20.5 20.5 20.1 20.5 20.2 19.9 19.7 19.5 20.4 19.8 
Combined Ratio98.5 %109.9 %106.5 %112.1 %108.8 %107.6 %108.0 %108.6 %106.9 %108.2 %
Underlying Combined Ratio 1
Current Year Non-catastrophe Losses and LAE Ratio77.7 %80.0 %81.9 %87.5 %87.6 %86.9 %89.1 %89.2 %82.0 %88.2 %
Insurance Expense Ratio20.5 20.5 20.1 20.5 20.2 19.9 19.7 19.5 20.4 19.8 
Underlying Combined Ratio98.2 %100.5 %102.0 %108.0 %107.8 %106.8 %108.8 %108.7 %102.4 %108.0 %
Non-GAAP Measure Reconciliation
Combined Ratio as Reported98.5 %109.9 %106.5 %112.1 %108.8 %107.6 %108.0 %108.6 %106.9 %108.2 %
Less:
Current Year Catastrophe Losses and LAE Ratio0.3 0.7 1.9 0.9 — 1.5 0.6 0.2 0.9 0.6 
Prior Years Non-catastrophe Losses and LAE Ratio— 8.8 2.7 3.3 1.0 (0.7)(1.4)(0.4)3.7 (0.4)
Prior Years Catastrophe Losses and LAE Ratio— (0.1)(0.1)(0.1)— — — 0.1 (0.1)— 
Underlying Combined Ratio98.2 %100.5 %102.0 %108.0 %107.8 %106.8 %108.8 %108.7 %102.4 %108.0 %
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.
16

Kemper Corporation
Specialty Property & Casualty Insurance Segment
Results of Operations and Selected Financial Information (continued)
(Dollars in Millions)
(Unaudited)
Dec 31,
2023		Sep 30, 2023Jun 30, 2023Mar 31, 2023Dec 31, 2022Sep 30, 2022Jun 30, 2022Mar 31, 2022
Insurance Reserves:
Non-Standard Automobile$1,711.9 $1,761.6 $1,741.4 $1,805.6 $1,875.8 $1,857.0 $1,915.2 $1,952.3 
Commercial Automobile596.8 570.3 530.8 491.4 445.3 417.8 385.9 356.5 
Insurance Reserves$2,308.7 $2,331.9 $2,272.2 $2,297.0 $2,321.1 $2,274.8 $2,301.1 $2,308.8 
Insurance Reserves:
Loss and Allocated LAE Reserves:
Case and Allocated LAE$999.9 $1,048.0 $1,061.7 $1,094.8 $1,099.9 $1,110.7 $1,151.0 $1,166.0 
Incurred but Not Reported1,132.8 1,107.7 1,036.7 1,027.0 1,041.2 968.2 940.4 934.0 
Total Loss Reserves2,132.7 2,155.7 2,098.4 2,121.8 2,141.1 2,078.9 2,091.4 2,100.0 
Unallocated LAE Reserves176.0 176.2 173.8 175.2 180.0 195.9 209.7 208.8 
Insurance Reserves$2,308.7 $2,331.9 $2,272.2 $2,297.0 $2,321.1 $2,274.8 $2,301.1 $2,308.8 
17

Kemper Corporation
Specialty Property & Casualty Insurance Segment
Personal Automobile Insurance - Results of Operations and Selected Financial Information
(Dollars in Millions)
(Unaudited)
 Three Months EndedYear Ended
 Dec 31,
2023		Sep 30, 2023Jun 30, 2023Mar 31, 2023Dec 31, 2022Sep 30, 2022Jun 30, 2022Mar 31, 2022Dec 31,
2023		Dec 31,
2022
Results of Operations   
Net Premiums Written$563.8 $583.9 $687.4 $842.4 $762.8 $805.2 $852.3 $884.8 $2,677.5 $3,305.1 
Earned Premiums$699.3 $724.0 $766.6 $787.9 $830.4 $858.8 $905.8 $901.7 $2,977.8 $3,496.7 
Net Investment Income32.3 32.5 33.8 29.9 29.7 26.5 26.6 27.2 128.5 110.0 
Change in Value of Alternative Energy Partnership Investments0.2 0.4 0.3 0.3 0.5 0.3 (1.8)(6.0)1.2 (7.0)
Other Income1.3 1.6 0.7 0.9 1.0 2.3 1.0 1.7 4.5 6.0 
Total Revenues733.1 758.5 801.4 819.0 861.6 887.9 931.6 924.6 3,112.0 3,605.7 
Incurred Losses and LAE related to:
Current Year:
Non-catastrophe Losses and LAE544.2 583.5 638.7 697.6 739.8 757.8 828.6 827.7 2,464.0 3,153.9 
Catastrophe Losses and LAE1.9 5.0 15.0 7.7 (0.2)13.1 5.8 2.0 29.6 20.7 
Prior Years:
Non-catastrophe Losses and LAE(2.2)71.8 18.0 23.4 14.1 (6.7)(16.5)(9.0)111.0 (18.1)
Catastrophe Losses and LAE— (0.9)(0.9)(0.5)(0.1)0.1 (0.2)0.7 (2.3)0.5 
Total Incurred Losses and LAE543.9 659.4 670.8 728.2 753.6 764.3 817.7 821.4 2,602.3 3,157.0 
Insurance Expenses151.4 155.3 157.1 162.0 172.2 172.9 179.7 177.3 625.8 702.1 
Adjusted Operating Income (Loss)37.8 (56.2)(26.5)(71.2)(64.2)(49.3)(65.8)(74.1)(116.1)(253.4)
Income Tax (Expense) Benefit(7.5)12.4 6.3 15.5 14.7 12.3 14.9 17.7 26.7 59.6 
Total Product Line Adjusted Net Operating Income (Loss)$30.3 $(43.8)$(20.2)$(55.7)$(49.5)$(37.0)$(50.9)$(56.4)$(89.4)$(193.8)
Ratios Based On Earned Premiums
Current Year Non-catastrophe Losses and LAE Ratio77.8 %80.6 %83.3 %88.5 %89.1 %88.3 %91.5 %91.8 %82.8 %90.2 %
Current Year Catastrophe Losses and LAE Ratio0.3 0.7 2.0 1.0 — 1.5 0.6 0.2 1.0 0.6 
Prior Years Non-catastrophe Losses and LAE Ratio(0.3)9.9 2.3 3.0 1.7 (0.8)(1.8)(1.0)3.7 (0.5)
Prior Years Catastrophe Losses and LAE Ratio— (0.1)(0.1)(0.1)— — — 0.1 (0.1)— 
Total Incurred Loss and LAE Ratio77.8 91.1 87.5 92.4 90.8 89.0 90.3 91.1 87.4 90.3 
Insurance Expense Ratio21.7 21.5 20.5 20.6 20.7 20.1 19.8 19.7 21.0 20.1 
Combined Ratio99.5 %112.6 %108.0 %113.0 %111.5 %109.1 %110.1 %110.8 %108.4 %110.4 %
Underlying Combined Ratio 1
Current Year Non-catastrophe Losses and LAE Ratio77.8 %80.6 %83.3 %88.5 %89.1 %88.3 %91.5 %91.8 %82.8 %90.2 %
Insurance Expense Ratio21.7 21.5 20.5 20.6 20.7 20.1 19.8 19.7 21.0 20.1 
Underlying Combined Ratio99.5 %102.1 %103.8 %109.1 %109.8 %108.4 %111.3 %111.5 %103.8 %110.3 %
Non-GAAP Measure Reconciliation
Combined Ratio99.5 %112.6 %108.0 %113.0 %111.5 %109.1 %110.1 %110.8 %108.4 %110.4 %
Less:
Current Year Catastrophe Losses and LAE Ratio0.3 0.7 2.0 1.0 — 1.5 0.6 0.2 1.0 0.6 
Prior Years Non-catastrophe Losses and LAE Ratio(0.3)9.9 2.3 3.0 1.7 (0.8)(1.8)(1.0)3.7 (0.5)
Prior Years Catastrophe Losses and LAE Ratio— (0.1)(0.1)(0.1)— — — 0.1 (0.1)— 
Underlying Combined Ratio99.5 %102.1 %103.8 %109.1 %109.8 %108.4 %111.3 %111.5 %103.8 %110.3 %
1 Underlying Combined Ratio is a non-GAAP measure, which is computed as the difference between three operating ratios: the combined ratio, the effect of catastrophes (excluding development of prior-year catastrophes) on the combined ratio and the effect of prior-year reserve development at the reporting date (including development on prior-year catastrophes) on the combined ratio.
18

Kemper Corporation
Specialty Property & Casualty Insurance Segment
Commercial Automobile Insurance - Results of Operations and Selected Financial Information
(Dollars in Millions)
(Unaudited)
 Three Months EndedYear Ended
 Dec 31,
2023		Sep 30, 2023Jun 30, 2023Mar 31, 2023Dec 31, 2022Sep 30, 2022Jun 30, 2022Mar 31, 2022Dec 31,
2023		Dec 31,
2022
Results of Operations   
Net Premiums Written$155.9 $149.1 $143.2 $179.7 $159.5 $163.3 $167.6 $138.9 $627.9 $629.3 
Earned Premiums$166.3 $166.4 $165.7 $156.3 $151.2 $140.7 $137.9 $119.9 $654.7 $549.7 
Net Investment Income10.3 10.2 10.7 8.6 8.2 7.4 7.4 7.7 39.8 30.7 
Change in Value of Alternative Energy Partnership Investments0.1 0.1 0.1 0.1 0.2 — (0.7)(2.4)0.4 (2.9)
Total Revenues176.7 176.7 176.5 165.0 159.6 148.1 144.6 125.2 694.9 577.5 
Incurred Losses and LAE related to:
Current Year:
Non-catastrophe Losses and LAE128.9 128.6 125.2 127.8 119.5 110.2 101.6 84.0 510.5 415.3 
Catastrophe Losses and LAE0.6 1.2 2.4 0.7 0.1 1.7 0.4 0.1 4.9 2.3 
Prior Years:
Non-catastrophe Losses and LAE2.0 7.0 7.0 8.2 (3.9)0.1 2.1 5.2 24.2 3.5 
Catastrophe Losses and LAE0.1 (0.1)— — — 0.1 — — — 0.1 
Total Incurred Losses and LAE131.6 136.7 134.6 136.7 115.7 112.1 104.1 89.3 539.6 421.2 
Insurance Expenses26.3 27.0 30.4 31.8 26.2 25.9 25.7 22.0 115.5 99.8 
Adjusted Operating Income (Loss)18.8 13.0 11.5 (3.5)17.7 10.1 14.8 13.9 39.8 56.5 
Income Tax (Expense) Benefit(3.8)(2.4)(2.1)0.8 (3.3)(1.8)(2.8)(2.2)(7.5)(10.1)
Total Product Line Adjusted Net Operating Income (Loss)$15.0 $10.6 $9.4 $(2.7)$14.4 $8.3 $12.0 $11.7 $32.3 $46.4 
Ratios Based On Earned Premiums
Current Year Non-catastrophe Losses and LAE Ratio77.4 %77.4 %75.6 %81.9 %79.0 %78.3 %73.7 %70.1 %78.0 %75.6 %
Current Year Catastrophe Losses and LAE Ratio0.4 0.7 1.4 0.4 0.1 1.2 0.3 0.1 0.7 0.4 
Prior Years Non-catastrophe Losses and LAE Ratio1.2 4.2 4.2 5.2 (2.6)0.1 1.5 4.3 3.7 0.6 
Prior Years Catastrophe Losses and LAE Ratio0.1 (0.1)— — — 0.1 — — — — 
Total Incurred Loss and LAE Ratio79.1 82.2 81.2 87.5 76.5 79.7 75.5 74.5 82.4 76.6 
Insurance Expense Ratio15.8 16.2 18.3 20.3 17.3 18.4 18.6 18.3 17.6 18.2 
Combined Ratio94.9 %98.4 %99.5 %107.8 %93.8 %98.1 %94.1 %92.8 %100.0 %94.8 %
Underlying Combined Ratio 1
Current Year Non-catastrophe Losses and LAE Ratio77.4 %77.4 %75.6 %81.9 %79.0 %78.3 %73.7 %70.1 %78.0 %75.6 %
Insurance Expense Ratio15.8 16.2 18.3 20.3 17.3 18.4 18.6 18.3 17.6 18.2 
Underlying Combined Ratio93.2 %93.6 %93.9 %102.2 %96.3 %96.7 %92.3 %88.4 %95.6 %93.8 %
Non-GAAP Measure Reconciliation
Combined Ratio94.9 %98.4 %99.5 %107.8 %93.8 %98.1 %94.1 %92.8 %100.0 %94.8 %
Less:
Current Year Catastrophe Losses and LAE Ratio0.4 0.7 1.4 0.4 0.1 1.2 0.3 0.1 0.7 0.4 
Prior Years Non-catastrophe Losses and LAE Ratio1.2 4.2 4.2 5.2 (2.6)0.1 1.5 4.3 3.7 0.6 
Prior Years Catastrophe Losses and LAE Ratio0.1 (0.1)— — — 0.1 — — — — 
Underlying Combined Ratio93.2 %93.6 %93.9 %102.2 %96.3 %96.7 %92.3 %88.4 %95.6 %93.8 %
1 Underlying Combined Ratio is a non-GAAP measure, which is computed as the difference between three operating ratios: the combined ratio, the effect of catastrophes (excluding development of prior-year catastrophes) on the combined ratio and the effect of prior-year reserve development at the reporting date (including development on prior-year catastrophes) on the combined ratio.
    
19

Kemper Corporation
Life Insurance Segment
Results of Operations and Selected Financial Information
(Dollars in Millions)
(Unaudited)
 Three Months EndedYear Ended
 Dec 31,
2023		Sep 30, 2023Jun 30, 2023Mar 31, 2023Dec 31, 2022Sep 30, 2022Jun 30, 2022Mar 31, 2022Dec 31,
2023		Dec 31,
2022
Results of Operations  
Earned Premiums 1
$84.0 $102.1 $102.2 $99.3 $142.6 $142.1 $144.0 $142.8 $387.6 $571.5 
Net Investment Income47.1 49.4 47.1 49.8 52.6 52.6 61.9 49.4 193.4 216.5 
Change in Value of Alternative Energy Partnership Investments0.1 0.2 0.2 0.2 0.3 0.1 (1.3)(4.4)0.7 (5.3)
Other Income (Loss)0.2 (0.1)0.1 (0.4)0.2 — (0.8)— (0.2)(0.6)
Total Revenues131.4 151.6 149.6 148.9 195.7 194.8 203.8 187.8 581.5 782.1 
Policyholders’ Benefits and Incurred Losses and LAE 2
40.5 64.7 68.3 69.9 88.1 88.5 94.3 89.9 243.4 360.8 
Insurance Expenses71.0 69.4 71.2 64.2 81.1 90.7 85.6 85.9 275.8 343.3 
Segment Adjusted Operating Income19.9 17.5 10.1 14.8 26.5 15.6 23.9 12.0 62.3 78.0 
Income Tax Expense(4.9)(2.8)(1.2)(1.6)(3.5)(1.6)(3.7)(0.4)(10.5)(9.2)
Total Segment Adjusted Net Operating Income$15.0 $14.7 $8.9 $13.2 $23.0 $14.0 $20.2 $11.6 $51.8 $68.8 
1 Earned Premiums were impacted by changes in deferred profit liability related to the annual review and assumptions update under LDTI that decreased earned premiums by $15.0 million in fourth quarter and full year 2023 and increased earned premiums by $12.7 million in fourth quarter and full year 2022.
2 Policyholders’ Benefits and Incurred Losses and LAE was impacted by changes in the annual assumptions update under LDTI that resulted in a $23.3 million decrease in policyholders’ benefits for fourth quarter and full year 2023 an $8.7 million increase in policyholders’ benefits for fourth quarter and full year 2022.
    

20

Kemper Corporation
Life Insurance Segment
Results of Operations and Selected Financial Information (continued)
(Dollars in Millions)
(Unaudited)

Dec 31,
2023		Sep 30, 2023Jun 30, 2023Mar 31, 2023Dec 31,
2022
Sep 30, 2022 1
Jun 30, 2022Mar 31, 2022
Insurance Reserves:
Future Policyholder Benefits$3,375.6 $3,048.7 $3,315.2 $3,346.9 $3,218.5 $3,190.2 $3,503.4 $4,015.4 
Incurred Losses and LAE Reserves:
Life42.1 44.6 44.2 48.3 53.3 55.7 56.7 63.6 
Accident and Health4.7 4.8 4.4 4.4 4.3 23.4 25.0 25.2 
Property2.9 2.7 2.6 2.7 2.3 3.6 3.1 3.1 
Total Incurred Losses and LAE Reserves49.7 52.1 51.2 55.4 59.9 82.7 84.8 91.9 
Insurance Reserves$3,425.3 $3,100.8 $3,366.4 $3,402.3 $3,278.4 $3,272.9 $3,588.2 $4,107.3 
1 Includes reserves classified as Held-for-Sale Liabilities on the Condensed Consolidated Balance Sheets.


21

Kemper Corporation
Life Insurance Segment
Life Insurance - Results of Operations and Selected Financial Information
(Dollars in Millions)
(Unaudited)
 Three Months EndedYear Ended
 Dec 31,
2023		Sep 30, 2023Jun 30, 2023Mar 31, 2023Dec 31, 2022Sep 30, 2022Jun 30, 2022Mar 31, 2022Dec 31,
2023		Dec 31,
2022
Results of Operations  
Earned Premiums 1
$67.3 $84.9 $84.8 $82.2 $99.0 $84.3 $86.8 $82.7 $319.2 $352.8 
Net Investment Income46.7 49.0 46.6 49.5 51.0 51.0 60.1 47.9 191.8 210.0 
Change in Value of Alternative Energy Partnership Investments0.1 0.2 0.2 0.2 0.3 0.1 (1.3)(4.0)0.7 (4.9)
Other Income (Loss)0.1 — — (0.5)0.1 (0.1)(1.1)— (0.4)(1.1)
Total Revenues114.2 134.1 131.6 131.4 150.4 135.3 144.5 126.6 511.3 556.8 
Policyholders’ Benefits and Incurred Losses and LAE 2
35.5 59.1 60.0 64.1 70.4 61.5 64.9 60.4 218.7 257.2 
Insurance Expenses62.7 59.9 62.3 56.1 58.9 61.7 58.9 58.2 241.0 237.7 
Adjusted Operating Income16.0 15.1 9.3 11.2 21.1 12.1 20.7 8.0 51.6 61.9 
Income Tax (Expense) Benefit(4.1)(2.2)(1.0)(0.9)(2.6)(0.9)(3.0)0.3 (8.2)(6.2)
Total Product Line Adjusted Net Operating Income$11.9 $12.9 $8.3 $10.3 $18.5 $11.2 $17.7 $8.3 $43.4 $55.7 
1 Earned Premiums were impacted by changes in deferred profit liability related to the annual review and assumptions update under LDTI that decreased earned premiums by $15.0 million in fourth quarter and full year 2023 and increased earned premiums by $12.7 million in fourth quarter and full year 2022.
2 Policyholders’ Benefits and Incurred Losses and LAE was impacted by changes in the annual assumptions update under LDTI that resulted in a $23.3 million decrease in policyholders’ benefits for fourth quarter and full year 2023 an $8.7 million increase in policyholders’ benefits for fourth quarter and full year 2022.

Kemper Corporation
Life Insurance Segment
Accident & Health Insurance - Results of Operations and Selected Financial Information
(Dollars in Millions)
(Unaudited)
 Three Months EndedYear Ended
 Dec 31,
2023		Sep 30, 2023Jun 30, 2023Mar 31, 2023Dec 31, 2022Sep 30, 2022Jun 30, 2022Mar 31, 2022Dec 31,
2023		Dec 31,
2022
Results of Operations  
Earned Premiums$5.6 $5.8 $5.8 $5.9 $31.4 $45.9 $45.1 $45.8 $23.1 $168.2 
Net Investment Income— — — — 0.8 0.8 1.0 0.7 — 3.3 
Change in Value of Alternative Energy Partnership Investments— — — — — — — (0.1)— (0.1)
Other Income (Loss)0.1 (0.1)0.1 0.1 0.1 0.1 0.3 — 0.2 0.5 
Total Revenues5.7 5.7 5.9 6.0 32.3 46.8 46.4 46.4 23.3 171.9 
Policyholders’ Benefits and Incurred Losses and LAE1.9 2.5 5.1 2.0 16.2 22.3 24.5 23.5 11.5 86.5 
Insurance Expenses2.7 3.4 3.1 2.0 15.8 22.4 20.1 20.8 11.2 79.1 
Adjusted Operating Income (Loss)1.1 (0.2)(2.3)2.0 0.3 2.1 1.8 2.1 0.6 6.3 
Income Tax (Expense) Benefit(0.3)— 0.5 (0.4)0.1 (0.4)(0.4)(0.4)(0.2)(1.1)
Total Product Line Adjusted Net Operating Income (Loss)$0.8 $(0.2)$(1.8)$1.6 $0.4 $1.7 $1.4 $1.7 $0.4 $5.2 
22

Kemper Corporation
Life Insurance Segment
Property Insurance - Results of Operations and Selected Financial Information
(Dollars in Millions)
(Unaudited)
 Three Months EndedYear Ended
 Dec 31,
2023		Sep 30, 2023Jun 30, 2023Mar 31, 2023Dec 31, 2022Sep 30, 2022Jun 30, 2022Mar 31, 2022Dec 31,
2023		Dec 31,
2022
Results of Operations   
Earned Premiums$11.1 $11.4 $11.6 $11.2 $12.2 $11.9 $12.1 $14.3 $45.3 $50.5 
Net Investment Income0.4 0.4 0.5 0.3 0.8 0.8 0.8 0.8 1.6 3.2 
Change in Value of Alternative Energy Partnership Investments— — — — — — — (0.3)— (0.3)
Total Revenues11.5 11.8 12.1 11.5 13.0 12.7 12.9 14.8 46.9 53.4 
Incurred Losses and LAE related to:
Current Year:
Non-catastrophe Losses and LAE2.3 2.2 2.2 2.2 2.0 2.8 3.6 4.1 8.9 12.5 
Catastrophe Losses and LAE0.3 0.5 0.8 0.6 (0.6)1.4 0.6 0.4 2.2 1.8 
Prior Years:
Non-catastrophe Losses and LAE0.2 0.1 0.2 0.8 0.1 0.1 0.5 0.6 1.3 1.3 
Catastrophe Losses and LAE0.3 0.3 — 0.2 — 0.4 0.2 0.9 0.8 1.5 
Total Incurred Losses and LAE3.1 3.1 3.2 3.8 1.5 4.7 4.9 6.0 13.2 17.1 
Insurance Expenses5.6 6.1 5.8 6.1 6.4 6.6 6.6 6.9 23.6 26.5 
Adjusted Operating Income2.8 2.6 3.1 1.6 5.1 1.4 1.4 1.9 10.1 9.8 
Income Tax Expense(0.5)(0.6)(0.7)(0.3)(1.0)(0.3)(0.3)(0.3)(2.1)(1.9)
Total Product Line Adjusted Net Operating Income$2.3 $2.0 $2.4 $1.3 $4.1 $1.1 $1.1 $1.6 $8.0 $7.9 
Ratios Based On Earned Premiums
Current Year Non-catastrophe Losses and LAE Ratio20.7 %19.3 %19.0 %19.6 %16.4 %23.5 %29.7 %28.7 %19.5 %24.7 %
Current Year Catastrophe Losses and LAE Ratio2.7 4.4 6.9 5.4 (4.9)11.8 5.0 2.8 4.9 3.6 
Prior Years Non-catastrophe Losses and LAE Ratio1.8 0.9 1.7 7.1 0.8 0.8 4.1 4.2 2.9 2.6 
Prior Years Catastrophe Losses and LAE Ratio2.7 2.6 — 1.8 — 3.4 1.7 6.3 1.8 3.0 
Total Incurred Loss and LAE Ratio27.9 27.2 27.6 33.9 12.3 39.5 40.5 42.0 29.1 33.9 
Insurance Expense Ratio50.5 53.5 50.0 54.5 52.5 55.5 54.5 48.3 52.1 52.5 
Combined Ratio78.4 %80.7 %77.6 %88.4 %64.8 %95.0 %95.0 %90.3 %81.2 %86.4 %
Underlying Combined Ratio 1
Current Year Non-catastrophe Losses and LAE Ratio20.7 %19.3 %19.0 %19.6 %16.4 %23.5 %29.7 %28.7 %19.5 %24.7 %
Insurance Expense Ratio50.5 53.5 50.0 54.5 52.5 55.5 54.5 48.3 52.1 52.5 
Underlying Combined Ratio71.2 %72.8 %69.0 %74.1 %68.9 %79.0 %84.2 %77.0 %71.6 %77.2 %
Non-GAAP Measure Reconciliation
Combined Ratio78.4 %80.7 %77.6 %88.4 %64.8 %95.0 %95.0 %90.3 %81.2 %86.4 %
Less:
Current Year Catastrophe Losses and LAE Ratio2.7 4.4 6.9 5.4 (4.9)11.8 5.0 2.8 4.9 3.6 
Prior Years Non-catastrophe Losses and LAE Ratio1.8 0.9 1.7 7.1 0.8 0.8 4.1 4.2 2.9 2.6 
Prior Years Catastrophe Losses and LAE Ratio2.7 2.6 — 1.8 — 3.4 1.7 6.3 1.8 3.0 
Underlying Combined Ratio71.2 %72.8 %69.0 %74.1 %68.9 %79.0 %84.2 %77.0 %71.6 %77.2 %
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.
23

Kemper Corporation
Expenses
(Dollars in Millions)
(Unaudited)
 Three Months EndedYear Ended
 Dec 31,
2023		Sep 30, 2023Jun 30, 2023Mar 31, 2023Dec 31, 2022Sep 30, 2022Jun 30, 2022Mar 31, 2022Dec 31,
2023		Dec 31,
2022
Insurance Expenses: 
Commissions$121.2 $130.8 $165.3 $166.9 $165.7 $176.3 $190.9 $191.9 $584.2 $724.8 
General Expenses88.2 85.9 74.5 94.2 86.4 93.5 91.4 87.1 342.8 358.4 
Premium Taxes17.7 17.8 20.5 23.6 25.3 23.6 25.2 25.4 79.6 99.5 
Total Costs Incurred227.1 234.5 260.3 284.7 277.4 293.4 307.5 304.4 1,006.6 1,182.7 
Net Policy Acquisition Costs Amortized (Deferred)30.4 24.0 5.3 (15.9)9.9 6.5 (0.5)(1.7)43.8 14.2 
Amortization of Valuation of Business Acquired ("VOBA")0.5 0.5 0.5 0.5 0.7 0.6 0.7 2.1 2.0 4.1 
Insurance Expenses$258.0 $259.0 $266.1 $269.3 $288.0 $300.5 $307.7 $304.8 $1,052.4 $1,201.0 
Loss from Early Extinguishment of Debt— — — — — — — 3.7 — 3.7 
Interest and Other Expenses:
Interest Expense$13.9 $14.1 $14.0 $14.1 $13.7 $14.3 $14.0 $12.7 $56.1 $54.7 
Other Expenses:
Acquisition and Disposition Related Transaction, Integration, Restructuring and Other Costs18.4 43.3 29.5 29.1 35.6 12.7 9.9 4.7 120.3 62.9 
Pension Settlement Expense— 70.2 — — — — — — 70.2 — 
Other25.3 28.4 34.8 34.2 37.2 36.5 29.6 36.7 122.7 140.0 
Other Expenses43.7 141.9 64.3 63.3 72.8 49.2 39.5 41.4 313.2 202.9 
Interest and Other Expenses57.6 156.0 78.3 77.4 86.5 63.5 53.5 54.1 369.3 257.6 
Goodwill Impairment— — 49.6 — — — — — 49.6 — 
Total Expenses$315.6 $415.0 $394.0 $346.7 $374.5 $364.0 $361.2 $362.6 $1,471.3 $1,462.3 

24

Kemper Corporation
Details of Investment Performance
(Dollars in Millions)
(Unaudited)
 Three Months EndedYear Ended
 Dec 31,
2023		Sep 30, 2023Jun 30, 2023Mar 31, 2023Dec 31, 2022Sep 30, 2022Jun 30, 2022Mar 31, 2022Dec 31,
2023		Dec 31,
2022
Net Investment Income  
Interest on Fixed Income Securities$86.2 $86.5 $87.1 $86.2 $81.7 $76.9 $72.8 $68.7 $346.0 $300.1 
Dividends on Equity Securities Excluding Alternative Investments1.0 1.2 1.2 1.0 2.0 1.1 1.7 1.5 4.4 6.3 
Alternative Investments:
Equity Method Limited Liability Investments2.3 4.3 2.8 1.1 3.3 (0.6)15.3 13.3 10.5 31.3 
Limited Liability Investments Included in Equity Securities4.7 5.4 6.3 2.6 7.2 8.8 18.5 7.6 19.0 42.1 
Total Alternative Investments7.0 9.7 9.1 3.7 10.5 8.2 33.8 20.9 29.5 73.4 
Short-term Investments6.1 6.0 3.6 2.3 2.3 1.1 0.2 0.1 18.0 3.7 
Loans to Policyholders5.3 5.1 5.1 5.4 5.2 5.5 5.3 5.5 20.9 21.5 
Real Estate2.3 2.3 1.9 2.4 2.5 3.1 2.3 2.2 8.9 10.1 
Company-Owned Life Insurance
6.6 6.4 7.4 8.8 9.9 9.9 9.8 8.3 29.2 37.9 
Other2.8 1.8 5.3 3.0 2.6 1.7 1.7 1.7 12.9 7.7 
Total Investment Income117.3 119.0 120.7 112.8 116.7 107.5 127.6 108.9 469.8 460.7 
Investment Expenses:
Real Estate2.8 1.7 2.2 2.1 2.1 2.3 1.0 2.5 8.8 7.9 
Other Investment Expenses9.9 10.3 12.2 8.9 8.3 7.4 8.1 6.4 41.3 30.2 
Total Investment Expenses12.7 12.0 14.4 11.0 10.4 9.7 9.1 8.9 50.1 38.1 
Net Investment Income$104.6 $107.0 $106.3 $101.8 $106.3 $97.8 $118.5 $100.0 $419.7 $422.6 
Net Realized Investment Gains (Losses)
Fixed Maturities:
Gains on Sales$3.6 $0.8 $0.4 $1.1 3.6 $14.2 $13.4 $0.4 $5.9 $31.6 
Losses on Sales(0.4)(1.2)(6.0)(3.3)(4.4)(23.9)(2.8)(0.8)(10.9)(31.9)
Gains (Losses) on Hedging Activity17.8 (29.4)(8.7)8.4 1.7 (0.3)0.3 — (11.9)1.7 
Equity Securities:
Gains on Sales— 0.5 0.1 — 3.1 4.5 0.1 2.0 0.6 9.7 
Losses on Sales(1.3)(1.1)(0.1)— (0.1)(6.6)— (0.1)(2.5)(6.8)
Other Investments:
Gains on Sales— — — 0.2 — — — — 0.2 — 
Losses on Sales— 0.1 (0.1)— — — — — — — 
Net Realized Investment Gains (Losses)$19.7 $(30.3)$(14.4)$6.4 $3.9 $(12.1)$11.0 $1.5 $(18.6)$4.3 
Net Impairment Losses Recognized in Earnings
Fixed Maturities$(0.7)$(2.0)$— $2.1 $(3.7)$(8.3)$(4.9)$(8.9)$(0.6)$(25.8)
Equity Securities(0.5)— — — — — — — (0.5)— 
Net Impairment Losses Recognized in Earnings$(1.2)$(2.0)$— $2.1 $(3.7)$(8.3)$(4.9)$(8.9)$(1.1)$(25.8)
 
25

Kemper Corporation
Details of Invested Assets
(Dollars in Millions)
(Unaudited)
 Dec 31, 2023Dec 31, 2022Dec 31, 2021
 Carrying
Value
Percent
of Total1
Carrying
Value
Percent
of Total1
Carrying
Value
Percent
of Total1
Fixed Maturities Reported at Fair Value:
U.S. Government and Government Agencies and Authorities$511.5 5.7 %$528.0 6.0 %$637.4 6.1 %
States and Political Subdivisions1,401.9 15.7 1,568.9 17.8 1,890.1 18.2 
Foreign Governments 3.8 — 4.1 — 5.5 0.1 
Corporate Securities:
Bonds and Notes3,690.8 41.4 3,539.4 40.4 4,386.9 42.2 
Redeemable Preferred Stocks8.3 0.1 8.0 0.1 7.4 0.1 
Collateralized Loan Obligations949.8 10.7 953.9 10.9 752.1 7.2 
Other Mortgage- and Asset-backed315.8 3.5 292.5 3.3 307.5 3.0 
Total Fixed Maturities Reported at Fair Value6,881.9 77.1 6,894.8 78.5 7,986.9 76.9 
Equity Securities Reported at Fair Value:
Preferred Stocks25.5 0.3 39.8 0.5 51.8 0.5 
Common Stocks1.2 — 2.1 — 21.8 0.2 
Other Equity Interests:
Exchange Traded Funds7.7 0.1 12.2 0.1 432.0 4.2 
Limited Liability Companies and Limited Partnerships191.4 2.1 189.1 2.2 325.0 3.1 
Total Equity Securities Reported at Fair Value225.8 2.5 243.2 2.8 830.6 8.0 
Equity Method Limited Liability Investments221.7 2.5 217.0 2.5 241.9 2.3 
Alternative Energy Partnership Investments17.3 0.2 16.3 0.2 39.6 0.4 
Short-term Investments at Cost which Approximates Fair Value520.9 5.9 278.4 3.2 284.1 2.7 
Company Owned Life Insurance513.5 5.8 586.5 6.7 448.1 4.3 
Loans to Policyholders281.2 3.2 283.4 3.2 286.2 2.8 
Other Investments:
Equity Securities Reported at Modified Cost32.6 0.4 38.4 0.4 32.3 0.3 
Convertible Securities at Fair Value— — 43.3 0.5 46.4 0.5 
Real Estate at Depreciated Cost94.7 1.1 93.6 1.1 94.0 0.9 
Mortgage Loans99.8 1.1 91.1 1.0 96.8 0.9 
Other14.8 0.2 3.5 — 0.5 — 
Total Other Investments241.9 2.8 269.9 3.0 270.0 2.6 
Total Investments$8,904.2 100.0 %$8,789.5 100.0 %$10,387.4 100.0 %
1 Sum of percentages for individual lines may not equal subtotals and grand total due to rounding.
26

Kemper Corporation
Details of Invested Assets (continued)
(Dollars in Millions)
(Unaudited)
 Dec 31, 2023Dec 31, 2022Dec 31, 2021
 Carrying
Value
Percent
of Total1
Carrying
Value
Percent
of Total1
Carrying
Value
Percent
of Total1
S&P Equivalent Rating for Fixed Maturities
      
AAA, AA, A
$4,962.0 72.1 %$4,896.4 71.0 %$5,351.6 67.0 %
BBB
1,657.3 24.1 1,687.4 24.5 2,215.1 27.7 
BB, B
204.4 3.0 239.7 3.5 331.0 4.2 
CCC or Lower
58.2 0.8 71.3 1.0 89.2 1.1 
Total Investments in Fixed Maturities
$6,881.9 100.0 %$6,894.8 100.0 %$7,986.9 100.0 %
Duration (in Years)
Total Investments in Fixed Maturities
8.1 8.2 8.5 

27

Kemper Corporation
Investment Concentration
(Dollars in Millions)
(Unaudited)
 Dec 31, 2023Dec 31, 2022Dec 31, 2021
Fair Value of Non-governmental Fixed Maturities by IndustryAmountPercent
of Total
Investments		AmountPercent
of Total
Investments		AmountPercent
of Total
Investments
Finance, Insurance and Real Estate$2,070.5 23.3 %$2,007.5 22.8 %$1,996.7 19.2 %
Manufacturing1,077.6 12.1 1,085.9 12.4 1,571.0 15.1 
Transportation, Communication and Utilities807.3 9.1 733.7 8.3 815.8 7.9 
Services639.4 7.2 602.4 6.9 617.5 5.9 
Mining174.3 2.0 173.3 2.0 254.3 2.4 
Retail Trade156.0 1.8 165.1 1.9 171.4 1.7 
Construction4.4 — 11.7 0.1 13.1 0.1 
Other35.2 0.4 14.2 0.2 14.1 0.1 
Total Fair Value of Non-governmental Fixed Maturities$4,964.7 55.9 %$4,793.8 54.6 %$5,453.9 52.4 %
 
Dec 31, 2023
Ten Largest Investment Exposures 1
Fair
Value		Percent
of Total
Investments
Fixed Maturities:
States including their Political Subdivisions:
California $137.4 1.5 %
Texas116.6 1.3 
Michigan83.7 0.9 
New York76.5 0.9 
Georgia73.7 0.8 
Louisiana 62.4 0.7 
Pennsylvania57.9 0.7 
Florida57.6 0.6 
Colorado49.1 0.6 
Missouri42.1 0.5 
Total$757.0 8.5 %
1Excluding Investments in U.S. Government and Government Agencies and Authorities at December 31, 2023.

 

28

Kemper Corporation
Municipal Bond Securities
(Dollars in Millions)
(Unaudited)
 Dec 31, 2023
State
General
Obligation		Political
Subdivision
General
Obligation		RevenueTotal Fair
Value
Percent
of Total
Muni Bond1
Percent
of Total
Investments1
California$8.6 $128.7 $— $137.3 9.8 %1.5 %
Texas10.2 103.0 3.4 116.6 8.3 1.3 
Michigan— 73.5 10.1 83.6 6.0 0.9 
New York11.4 65.1 — 76.5 5.5 0.9 
Georgia4.0 65.2 4.4 73.6 5.3 0.8 
Louisiana4.3 26.2 31.8 62.3 4.4 0.7 
Pennsylvania3.1 54.9 — 58.0 4.1 0.7 
Florida— 57.6 — 57.6 4.1 0.6 
Colorado— 49.1 — 49.1 3.5 0.6 
Missouri1.1 41.0 — 42.1 3.0 0.5 
Washington1.3 28.2 5.4 34.9 2.5 0.4 
New Mexico— 34.2 — 34.2 2.5 0.4 
Virginia— 26.8 6.2 33.0 2.4 0.4 
Massachusetts— 27.5 5.2 32.7 2.3 0.4 
Oregon2.3 18.8 11.4 32.5 2.3 0.4 
Illinois0.6 31.1 — 31.7 2.3 0.4 
Minnesota1.1 28.8 — 29.9 2.1 0.3 
Maryland— 29.2 — 29.2 2.1 0.3 
Ohio— 28.7 — 28.7 2.0 0.3 
Tennessee3.3 20.2 — 23.5 1.7 0.3 
Oklahoma— 23.2 — 23.2 1.7 0.3 
Indiana— 22.6 — 22.6 1.6 0.3 
Mississippi— 11.0 11.1 22.1 1.6 0.2 
Connecticut— 16.9 2.7 19.6 1.4 0.2 
Rhode Island1.6 17.9 — 19.5 1.4 0.2 
North Carolina1.7 17.5 — 19.2 1.4 0.2 
District of Columbia— 15.9 2.8 18.7 1.3 0.2 
New Hampshire0.4 18.0 — 18.4 1.3 0.2 
Nebraska6.0 9.7 — 15.7 1.1 0.2 
Arizona— 14.3 — 14.3 1.0 0.2 
South Carolina— 13.9 — 13.9 1.0 0.2 
Kentucky— 13.7 — 13.7 1.0 0.2 
Utah— 13.3 — 13.3 0.9 0.1 
North Dakota— 13.0 — 13.0 0.9 0.1 
Alabama— 12.5 — 12.5 0.9 0.1 
Iowa— 11.9 — 11.9 0.8 0.1 
Hawaii3.4 2.8 2.9 9.1 0.6 0.1 
Maine— 8.5 — 8.5 0.6 0.1 
South Dakota— 8.3 — 8.3 0.6 0.1 
All Other States2.5 32.5 2.4 37.4 2.7 0.4 
Total$66.9 $1,235.2 $99.8 $1,401.9 100.0 %15.8 %
1 Sum of percentages for individual lines may not equal total due to rounding.
29

Kemper Corporation
Investments in Limited Liability
Companies and Limited Partnerships
(Dollars in Millions)
(Unaudited)
 Unfunded
Commitment		Reported Value
Asset ClassDec 31,
2023		Dec 31,
2023		Dec 31,
2022
Reported as Equity Method Limited Liability Investments:
Mezzanine Debt$43.1 $125.4 $114.3 
Real Estate— 41.9 43.3 
Senior Debt39.9 19.0 21.6 
Leveraged Buyout0.6 8.6 8.9 
Distressed Debt— 7.9 9.4 
Secondary Transactions1.7 7.9 9.3 
Growth Equity— 1.2 1.2 
Hedge Fund— 0.1 0.5 
Other— 9.7 8.5 
Total Equity Method Limited Liability Investments85.3 221.7 217.0 
Alternative Energy Partnership Investments— 17.3 16.3 
Reported as Other Equity Interests at Fair Value:
Mezzanine Debt67.0 124.0 106.0 
Senior Debt10.6 24.8 21.9 
Leveraged Buyout10.0 19.0 21.6 
Distressed Debt13.0 12.4 12.5 
Growth Equity6.5 6.4 5.4 
Secondary Transactions3.1 2.8 3.5 
Hedge Funds— 1.9 18.1 
Real Estate0.2 0.1 — 
Other— — 0.1 
Total Reported as Other Equity Interests at Fair Value110.4 191.4 189.1 
Reported as Other Equity Interests at Modified Cost:
Other— 4.8 8.3 
Total Reported as Other Equity Interests at Modified Cost— 4.8 8.3 
Total Investments in Limited Liability Companies and Limited Partnerships$195.7 $435.2 $430.7 

30

Kemper Corporation
Definitions of Non-GAAP Financial Measures

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

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

(i) (Loss) Income from Change in Fair Value of Equity and Convertible Securities;
(ii) Net Realized Investment Gains (Losses);
(iii) Impairment Losses;
(iv) Acquisition and Disposition Related Transaction, Integration, Restructuring and Other Costs;
(v) Debt Extinguishment, Pension Settlement and Other Charges;
(vi) Goodwill Impairment Charges;
(vii) Non-Core Operations; and
(viii) Significant non-recurring or infrequent items that may not be indicative of ongoing operations;

Significant non-recurring items are excluded when (a) the nature of the charge or gain is such that it is reasonably unlikely to recur within two years, and (b) there has been no similar charge or gain within the prior two years. The most directly comparable GAAP financial measure is Net Income (Loss) attributable to Kemper Corporation. There were no applicable significant non-recurring items that the Company excluded from the calculation of Adjusted Consolidated Net Operating Income (Loss) for the three and year ended December 31, 2023 or 2022.

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. (Loss) Income from Change in Fair Value of Equity and Convertible Securities, Net Realized Investment Gains (Losses) 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. Acquisition and Disposition Related Transaction, Integration, Restructuring and Other Costs may vary significantly between periods and are generally driven by the timing of acquisitions and business decisions which are unrelated to the insurance underwriting process. Debt Extinguishment, Pension Settlement and Other Charges relate to (i) loss from early extinguishment of debt, which is driven by the Company’s financing and refinancing decisions and capital needs, as well as external economic developments such as debt market conditions, the timing of which is unrelated to the insurance underwriting process; (ii) settlement of pension plan obligations which are business decisions made by the Company, the timing of which is unrelated to the underwriting process; and (iii) other charges that are non-standard, not part of the ordinary course of business, and unrelated to the insurance underwriting process. Goodwill impairment charges are excluded because they are infrequent and non-recurring charges. Non-Core Operations includes the results of our Preferred Insurance business which we expect to fully exit. These results are excluded because they are irrelevant to our ongoing operations and do not qualify for Discontinued Operations under Generally Accepted Accounting Principles ("GAAP"). Significant non-recurring items are excluded because, by their nature, they are not indicative of the Company’s business or economic trends. The preceding non-GAAP financial measures should not be considered a substitute for the comparable GAAP financial measures, as they do not fully recognize the profitability of the Company’s businesses.























31

Kemper Corporation
Definitions of Non-GAAP Financial Measures (continued)


A reconciliation of Net Income (Loss) attributable to Kemper Corporation to Adjusted Consolidated Net Operating Income (Loss) is presented below:

 Three Months EndedYear Ended
Dollars in Millions (Unaudited)Dec 31,
2023		Sep 30, 2023Jun 30, 2023Mar 31, 2023Dec 31, 2022Sep 30, 2022Jun 30, 2022Mar 31, 2022Dec 31,
2023		Dec 31,
2022
Net Income (Loss) attributable to Kemper Corporation$51.4 $(146.3)$(97.1)$(80.1)$(53.3)$(74.8)$(72.2)$(86.3)$(272.1)$(286.6)
Less Net (Loss) Income From:
(Loss) Income from Change in Fair Value of Equity and Convertible Securities(1.8)2.3 1.9 1.3 — (8.8)(32.0)(22.3)3.7 (63.1)
Net Realized Investment Gains (Losses)15.6 (22.9)(12.5)5.1 3.1 (9.6)8.7 1.2 (14.7)3.4 
Impairment Losses(1.0)(0.8)(0.8)1.7 (2.9)(6.6)(3.9)(7.0)(0.9)(20.4)
Acquisition and Disposition Related Transaction, Integration, Restructuring and Other Costs(14.4)(34.3)(23.3)(23.0)(29.1)(20.7)(7.8)(3.7)(95.0)(61.3)
Debt Extinguishment, Pension Settlement and Other Charges— (55.5)— — — — — (2.9)(55.5)(2.9)
Goodwill Impairment Charge— — (45.5)— — — — — (45.5)— 
Non-Core Operations2.5 (7.3)(2.7)(9.5)(0.9)(2.1)(16.8)(6.1)(17.0)(25.9)
Adjusted Consolidated Net Operating Income (Loss)$50.5 $(27.8)$(14.2)$(55.7)$(23.5)$(27.0)$(20.4)$(45.5)$(47.2)$(116.4)

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

 Three Months EndedYear Ended
(Unaudited)Dec 31,
2023		Sep 30, 2023Jun 30, 2023Mar 31, 2023Dec 31, 2022Sep 30, 2022Jun 30, 2022Mar 31, 2022Dec 31,
2023		Dec 31,
2022
Net Income (Loss) Per Unrestricted Share attributable to Kemper Corporation
$0.80 $(2.28)$(1.52)$(1.25)$(0.84)$(1.17)$(1.13)$(1.36)$(4.25)$(4.50)
Less Net (Loss) Income Per Unrestricted Share From:
(Loss) Income from Change in Fair Value of Equity and Convertible Securities(0.03)0.04 0.03 0.02 — (0.14)(0.50)(0.35)0.06 (0.99)
Net Realized Investment Gains (Losses)0.24 (0.35)(0.20)0.08 0.05 (0.15)0.13 0.02 (0.23)0.05 
Impairment Losses(0.01)(0.01)(0.02)0.03 (0.05)(0.10)(0.06)(0.11)(0.01)(0.32)
Acquisition and Disposition Related Transaction, Integration, Restructuring and Other Costs(0.23)(0.54)(0.36)(0.36)(0.46)(0.32)(0.12)(0.06)(1.49)(0.96)
Debt Extinguishment, Pension Settlement and Other Charges— (0.87)— — — — — (0.05)(0.87)(0.05)
Goodwill Impairment Charge— — (0.71)— — — — — (0.71)— 
Non-Core Operations0.04 (0.11)(0.04)(0.15)(0.02)(0.03)(0.26)(0.10)(0.26)(0.41)
Adjusted Consolidated Net Operating Income (Loss) Per Unrestricted Share$0.79 $(0.44)$(0.22)$(0.87)$(0.36)$(0.43)$(0.32)$(0.71)$(0.74)$(1.82)





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Kemper Corporation
Definitions of Non-GAAP Financial Measures (continued)


Return on Tangible Shareholders' Equity is a calculation that uses a non-GAAP financial Measure. It is calculated by dividing the period’s net income attributable to Kemper Corporation by the average shareholders’ equity excluding net unrealized gains and losses on fixed maturities, the change in discount rate on future life policyholder benefits and goodwill. Return on Shareholder’s Equity is the most directly comparable GAAP measure. We use this non-GAAP measure to identify and analyze the change in performance attributable to management efforts between periods. The Company believes this 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.

A reconciliation of Return on Shareholders’ Equity to Return on Tangible Shareholders' Equity is presented below:


 Three Months EndedYear Ended
Dec 31,
2023		Sep 30, 2023Jun 30, 2023Mar 31, 2023Dec 31, 2022Sep 30, 2022Jun 30, 2022Mar 31, 2022Dec 31,
2023		Dec 31,
2022
Numerator:
Annualized Net Income (Loss) Attributable to Kemper Corporation$205.6 $(585.2)$(388.4)$(320.4)$(213.2)$(299.2)$(288.8)$(345.2)$(272.1)$(286.6)
Denominator:
Average Shareholders' Equity1
$2,433.3 $2,436.8 $2,579.6 $2,658.8 $2,682.6 $2,769.3 $2,906.7 $3,049.5 $2,539.2 $2,861.6 
Less: Average Net Unrealized Gains and Losses on Fixed Maturities
716.9 770.3 607.3 645.5 749.7 627.4 242.9 (244.5)673.1 296.6 
Less: Average Change in Discount Rate on Future Life Policyholder Benefits
(286.7)(303.6)(174.3)(197.7)(256.9)(142.1)197.1 627.6 (232.6)145.9 
Less: Average Goodwill
(1,250.7)(1,250.7)(1,275.5)(1,300.3)(1,299.6)(1,305.4)(1,312.0)(1,312.0)(1,270.5)(1,307.0)
Average Tangible Shareholders' Equity1
$1,612.8 $1,652.8 $1,737.1 $1,806.3 $1,875.8 $1,949.2 $2,034.7 $2,120.6 $1,709.2 $1,997.1 
Return on Shareholders' Equity:
Return on Shareholders' Equity8.4 %(24.0)%(15.1)%(12.1)%(7.9)%(10.8)%(9.9)%(11.3)%(10.7)%(10.0)%
Return on Tangible Shareholders' Equity12.7 %(35.4)%(22.4)%(17.7)%(11.4)%(15.3)%(14.2)%(16.3)%(15.9)%(14.4)%
1 Average shareholders' equity and average tangible shareholders’ equity for the three months ended is the simple average of the beginning and ending balances for the period. Average shareholders’ equity and average tangible shareholders’ equity on a year-to-date basis is the (a) the sum of the balance at the beginning of the year and the ending balance for each quarter within that year divided by (b) the number of quarters in the period presented plus one.


Underlying Combined Ratio is a non-GAAP financial measure. It is computed by adding the Current Year Non-catastrophe Losses and LAE Ratio with the Insurance Expense Ratio. The most directly comparable GAAP financial measure is the Combined Ratio, which is computed by adding Total Incurred Losses and LAE Ratio, including the impact of catastrophe losses and loss and LAE reserve development from prior years, with the Insurance Expense Ratio.

The Company believes Underlying Losses and LAE and the Underlying Combined Ratio are useful to investors and uses these financial measures to reveal the trends in the Company’s Property & Casualty Insurance segment that may be obscured by catastrophe losses and prior-year reserve development. These catastrophe losses may cause the Company’s loss trends to vary significantly between periods as a result of their incidence of occurrence and magnitude and can have a significant impact on incurred losses and LAE and the Combined Ratio. Prior-year reserve developments are caused by unexpected loss development on historical reserves. Because reserve development relates to the re-estimation of losses from earlier periods, it has no bearing on the performance of the Company’s insurance products in the current period. The Company believes it is useful for investors to evaluate these components separately and in the aggregate when reviewing the Company’s underwriting performance.





33

Kemper Corporation
Definitions of Non-GAAP Financial Measures (continued)


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

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

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


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