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“Overall, we’re pleased with our results this quarter,” said Joseph P. Lacher, Jr., President and CEO. “We continued to deliver significantly improved profitability in our Specialty P&C business, where we are now exceeding target returns. We made substantial progress on growing new business applications in the first quarter, delivered our fourth consecutive quarter of underlying business improvement, and our second straight quarter of solid operating and underwriting profits. Our profit restoration actions led to this positive outcome. Moving forward, we’re focused on stabilizing our policy in force levels, further expanding new business availability, and delivering on our ROE commitments.”


	Three Months Ended
(Dollars in Millions, Except Per Share Amounts) (Unaudited)	Mar 31, 2024		Mar 31, 2023
Net Income (Loss)	$	71.3	$	(80.1)

Adjusted Consolidated Net Operating Income (Loss)1	$	69.7	$	(55.7)

Impact of Catastrophe Losses and Related Loss Adjustment Expense (LAE) on Net Income (Loss)	$	(12.6)	$	(20.5)

Diluted Net Income (Loss) Per Share From:
Net Income (Loss)	$	1.10	$	(1.25)

Adjusted Consolidated Net Operating Income (Loss)1	$	1.07	$	(0.87)

Impact of Catastrophe Losses and Related LAE on Net Income (Loss) Per Share	$	(0.20)	$	(0.32)

due to continued lower level of new business volumes resulting from targeted actions to improve profitability, partially offset by higher average earned premium per exposure from rate increases. The decrease was also due to $42.8 million in lower earned premiums from our Preferred Insurance Business, reported as Non-Core Operations, due primarily to lower volumes resulting from the decision to exit and run-off the business as well as ongoing profit improvement actions.

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
(Dollars in Millions) (Unaudited)	Mar 31, 2024		Mar 31, 2023
Segment Adjusted Net Operating Income (Loss):
Specialty Property & Casualty Insurance	$	69.2	$	(58.4)
Life Insurance	11.9		13.2
Total Segment Adjusted Net Operating Income (Loss)	81.1		(45.2)
Corporate and Other Adjusted Net Operating Loss	(12.5)		(10.5)
Less: Net Loss attributable to Noncontrolling Interest	(1.1)		—
Adjusted Consolidated Net Operating Income (Loss)1	69.7		(55.7)
Net Income (Loss) From:
Change in Fair Value of Equity and Convertible Securities	2.7		1.3
Net Realized Investment Gains	5.2		5.1
Impairment Losses	(1.2)		1.7
Acquisition and Disposition Related Transaction, Integration, Restructuring and Other Costs	(10.1)		(23.0)


Non-Core Operations	5.0		(9.5)

Net Income (Loss) attributable to Kemper Corporation	$	71.3	$	(80.1)

The Specialty Property and Casualty Insurance segment reported adjusted net operating income of $69.2 million for the first quarter of 2024, compared to an adjusted net operating loss of $58.4 million in the first quarter of 2023. This increase in results was due primarily to an improvement in the Underlying Combined Ratio1 and lower prior year loss and LAE development. The segment’s Underlying Combined Ratio1 was 93.6 percent compared to 108.0 percent in the first quarter of 2023. The improvement was primarily driven higher average earned premiums per exposure resulting from rate increases, lower underlying claim frequency and moderating increases in claim severity.

The Life Insurance segment reported adjusted net operating income of $11.9 million for the first quarter of 2024, compared to $13.2 million in the first quarter of 2023. The decrease in results was primarily driven by a reduction in net investment income partially offset by changes in mortality experience from life insurance products.

Total Kemper Corporation Shareholders’ Equity at the end of the quarter was $2,589.8 million, an increase of $84.6 million, or 3 percent, since year-end 2023 primarily driven net income for the year. Kemper and its direct non-insurance subsidiaries ended the quarter with cash and investments of $395.6 million, and $424.0 million of available borrowing capacity under the revolving credit agreement.


	Three Months Ended
(Dollars in Millions, Except Per Share Amounts)	Mar 31, 2024		Mar 31, 2023
Revenues:
Earned Premiums (Changes in Deferred Profit Liability for the Three Months Ended: 2024 - $19.7; 2023 - $19.2)	$	1,031.9	$	1,180.9
Net Investment Income	100.4		101.8
Change in Value of Alternative Energy Partnership Investments	0.4		0.7
Other Income	1.8		1.2
Change in Fair Value of Equity and Convertible Securities	3.4		1.7
Net Realized Investment Gains	6.6		6.4



Impairment Losses	(1.5)		2.1
Total Revenues	1,143.0		1,294.8
Expenses:
Policyholders’ Benefits and Incurred Losses and Loss Adjustment Expenses (Changes in Liability for Future Policyholder Benefits for the Three Months Ended: 2024 - $6.0; 2023 - $1.9)	756.0		1,052.0
Insurance Expenses	240.7		269.3

Interest and Other Expenses	59.7		77.4

Total Expenses	1,056.4		1,398.7
Income (Loss) before Income Taxes	86.6		(103.9)
Income Tax (Expense) Benefit	(16.4)		23.8
Net Income (Loss)	70.2		(80.1)




Less: Net Loss attributable to Noncontrolling Interest	(1.1)		—
Net Income (Loss) attributable to Kemper Corporation	$	71.3	$	(80.1)

Net Income (Loss) attributable to Kemper Corporation per Unrestricted Share:
Basic	$	1.11	$	(1.25)
Diluted	$	1.10	$	(1.25)

Weighted-average Outstanding (Shares in Thousands):
Unrestricted Shares - Basic	64,254.5		63,946.6
Unrestricted Shares and Equivalent Shares - Diluted	64,772.8		63,946.6

Dividends Paid to Shareholders per Share	$	0.31	$	0.31


	Three Months Ended
(Dollars in Millions)	Mar 31, 2024		Mar 31, 2023
REVENUES:
Specialty Property & Casualty Insurance:
Earned Premiums:
Personal Automobile	$	675.3	$	787.9
Commercial Automobile	164.7		156.3
Total Earned Premiums	840.0		944.2
Net Investment Income	41.1		38.5
Change in Value of Alternative Energy Partnership Investments	0.3		0.4
Other Income	1.1		0.9
Total Specialty Property & Casualty Insurance Revenues	882.5		984.0
Life Insurance:
Earned Premiums:
Life	80.6		82.2
Accident & Health	5.6		5.9
Property	11.1		11.2
Total Earned Premiums	97.3		99.3
Net Investment Income	44.3		49.8
Change in Value of Alternative Energy Partnership Investments	0.1		0.2
Other Income (Loss)	0.2		(0.4)
Total Life Insurance Revenues	141.9		148.9
Total Segment Revenues	1,024.4		1,132.9
Change in Fair Value of Equity and Convertible Securities	3.4		1.7
Net Realized Investment Gains	6.6		6.4
Net Impairment Losses Recognized in Earnings	(1.5)		2.1
Non-Core Operations	106.2		148.0
Other	3.9		3.7









Total Revenues	$	1,143.0	$	1,294.8


	Mar 31, 2024		Dec 31, 2023
Assets:
Investments:
Fixed Maturities at Fair Value	$	6,771.6	$	6,881.9
Equity Securities at Fair Value	230.1		225.8
Equity Method Limited Liability Investments	215.2		221.7
Alternative Energy Partnership Investments	17.2		17.3
Short-term Investments at Cost which Approximates Fair Value	520.7		520.9
Company-Owned Life Insurance	515.7		513.5
Loans to Policyholders	280.5		281.2
Other Investments	213.6		241.9
Total Investments	8,764.6		8,904.2
Cash	125.9		64.1
Receivables from Policyholders	953.1		959.5
Other Receivables	195.4		200.5
Deferred Policy Acquisition Costs	595.3		591.6
Goodwill	1,250.7		1,250.7
Current Income Tax Assets	52.6		64.5
Deferred Income Tax Assets	199.1		210.4

Other Assets	479.1		492.6
Assets of Consolidated Variable Interest Entity
Fixed Maturities at Fair Value	1.7		1.7
Cash	0.8		—
Short-term Investments at Cost which Approximates Fair Value	4.0		2.0
Receivables from Policyholders	2.7		0.7
Deferred Policy Acquisition Costs	0.6		0.1

Other Assets	0.3		0.1
Total Assets	$	12,625.9	$	12,742.7


	Mar 31, 2024		Dec 31, 2023

Liabilities and Shareholders’ Equity:
Insurance Reserves:
Life & Health	$	3,294.3	$	3,422.4
Property & Casualty	2,597.2		2,680.5
Total Insurance Reserves	5,891.5		6,102.9
Unearned Premiums	1,274.1		1,300.8
Policyholder Obligations	660.9		655.7
Deferred Income Tax Liabilities	61.7		50.6

Accrued Expenses and Other Liabilities	754.8		737.7
Long-term Debt, Current, at Amortized Cost	449.7		—
Long-term Debt, Non-current, at Amortized Cost	940.1		1,389.2
Liabilities of Consolidated Variable Interest Entity
Insurance Reserves	0.7		—
Unearned Premiums	3.1		0.5
Accrued Expenses and Other Liabilities	0.6		0.3
Total Liabilities	10,037.2		10,237.7
Kemper Corporation Shareholders’ Equity:
Common Stock	6.4		6.4
Paid-in Capital	1,852.3		1,845.3
Retained Earnings	1,066.1		1,014.3
Accumulated Other Comprehensive Loss	(335.0)		(360.8)
Total Kemper Corporation Shareholders’ Equity	2,589.8		2,505.2
Noncontrolling Interest	(1.1)		(0.2)
Total Shareholders’ Equity	2,588.7		2,505.0
Total Liabilities and Shareholders’ Equity	$	12,625.9	$	12,742.7


	Three Months Ended
(Dollars in Millions)	Mar 31, 2024			Mar 31, 2023

Results of Operations
Net Premiums Written	$	864.6		$	1,022.1





Earned Premiums	$	840.0		$	944.2
Net Investment Income	41.1			38.5
Change in Value of Alternative Energy Partnership Investments	0.3			0.4
Other Income	1.1			0.9
Total Revenues	882.5			984.0
Incurred Losses and LAE related to:
Current Year:
Non-catastrophe Losses and LAE	609.0			825.4
Catastrophe Losses and LAE	4.1			8.4
Prior Years:
Non-catastrophe Losses and LAE	5.3			31.6
Catastrophe Losses and LAE	0.7			(0.5)
Total Incurred Losses and LAE	619.1			864.9
Insurance Expenses	176.9			193.8

Segment Adjusted Operating Income (Loss)	86.5			(74.7)
Income Tax (Expense) Benefit	(17.3)			16.3
Total Segment Adjusted Net Operating Income (Loss)	$	69.2		$	(58.4)

Ratios Based On Earned Premiums
Current Year Non-catastrophe Losses and LAE Ratio	72.5		%	87.5		%
Current Year Catastrophe Losses and LAE Ratio	0.5			0.9
Prior Years Non-catastrophe Losses and LAE Ratio	0.6			3.3
Prior Years Catastrophe Losses and LAE Ratio	0.1			(0.1)
Total Incurred Loss and LAE Ratio	73.7			91.6
Insurance Expense Ratio	21.1			20.5
Combined Ratio	94.8		%	112.1		%

Underlying Combined Ratio1
Current Year Non-catastrophe Losses and LAE Ratio	72.5		%	87.5		%
Insurance Expense Ratio	21.1			20.5
Underlying Combined Ratio1	93.6		%	108.0		%

Non-GAAP Measure Reconciliation
Combined Ratio	94.8		%	112.1		%
Less:
Current Year Catastrophe Losses and LAE Ratio	0.5			0.9
Prior Years Non-catastrophe Losses and LAE Ratio	0.6			3.3
Prior Years Catastrophe Losses and LAE Ratio	0.1			(0.1)
Underlying Combined Ratio1	93.6		%	108.0		%


	Three Months Ended
(Dollars in Millions)	Mar 31, 2024		Mar 31, 2023

Results of Operations





Earned Premiums	$	97.3	$	99.3
Net Investment Income	44.3		49.8
Change in Value of Alternative Energy Partnership Investments	0.1		0.2
Other Income (Loss)	0.2		(0.4)
Total Revenues	141.9		148.9
Policyholders’ Benefits and Incurred Losses and LAE	63.0		69.9
Insurance Expenses	64.9		64.2
Segment Adjusted Operating Income	14.0		14.8
Income Tax Expense	(2.1)		(1.6)
Total Segment Adjusted Net Operating Income	$	11.9	$	13.2

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 Kemper excluded from the calculation of Adjusted Consolidated Net Operating Income (Loss)1 for the three months ended March 31, 2024 or 2023.

Kemper believes that Adjusted Consolidated Net Operating Income (Loss)1 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. Change in Fair Value of Equity and Convertible Securities, Net Realized Investment Gains (Losses) and Impairment Losses related to investments included in Kemper’s results may vary significantly between periods and are generally driven by business decisions and external economic developments such as capital market conditions that impact the values of Kemper’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 Kemper’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 Kemper, 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 Kemper’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 Kemper’s businesses.


	Three Months Ended
(Dollars in Millions) (Unaudited)	Mar 31, 2024		Mar 31, 2023


Net Income (Loss) attributable to Kemper Corporation	$	71.3	$	(80.1)
Less Net Income (Loss) From:
Change in Fair Value of Equity and Convertible Securities	2.7		1.3
Net Realized Investment Gains	5.2		5.1
Impairment Losses	(1.2)		1.7
Acquisition and Disposition Related Transaction, Integration, Restructuring and Other Costs	(10.1)		(23.0)


Non-Core Operations	5.0		(9.5)

Adjusted Consolidated Net Operating Income (Loss)1	$	69.7	$	(55.7)

Diluted Adjusted Net Operating Income (Loss) per Unrestricted Share1 is a non-GAAP financial measure computed by dividing Adjusted Net Operating Income (Loss)1 attributed to unrestricted shares by the weighted-average unrestricted shares and equivalent shares outstanding. The most directly comparable GAAP financial measure is Diluted Net Loss per Unrestricted Share.


	Three Months Ended
(Unaudited)	Mar 31, 2024		Mar 31, 2023
Diluted Net Income (Loss) attributable to Kemper Corporation per Unrestricted Share	$	1.10	$	(1.25)
Less Net Income (Loss) per Unrestricted Share From:
Change in Fair Value of Equity and Convertible Securities	0.04		0.02
Net Realized Investment Gains	0.09		0.08
Impairment Losses	(0.02)		0.03
Acquisition and Disposition Related Transaction, Integration, Restructuring and Other Costs	(0.16)		(0.36)


Non-Core Operations	0.08		(0.15)

Diluted Adjusted Net Operating Income (Loss) per Unrestricted Share1	$	1.07	$	(0.87)

Return on Tangible Shareholders' Equity1 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 Shareholders’ 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. Kemper 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. Kemper believes it enhances understanding and comparability of performance by highlighting underlying business activity and profitability drivers.


	Three Months Ended
(Dollars in Millions) (Unaudited)	Mar 31, 2024		Mar 31, 2023
Numerator:
Annualized Net Income (Loss) attributable to Kemper Corporation	$	285.2	$	(320.4)

Denominator:
Average Shareholders' Equity2	$	2,547.5	$	2,658.8

Less: Average Net Unrealized Gains and Losses on Fixed Maturities	576.1		645.5
Less: Average Change in Discount Rate on Future Life Policyholder Benefits	(216.3)		(197.7)
Less: Average Goodwill	(1,250.7)		(1,300.3)
Average Tangible Shareholders' Equity	$	1,656.6	$	1,806.3

Return on Shareholders' Equity:
Return on Shareholders' Equity	11.2%		(12.1)%
Return on Tangible Shareholders' Equity1	17.2%		(17.7)%

2 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 Ratio1 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.

Kemper believes Underlying Losses and LAE and the Underlying Combined Ratio are useful to investors and uses these financial measures to reveal the trends in Kemper’s Property & Casualty Insurance segment that may be obscured by catastrophe losses and prior-year reserve development. These catastrophe losses may cause Kemper’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 Kemper’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 Kemper’s underwriting performance.

Tangible Book Value Per Share1 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. Kemper 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. 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.


	As of
(Dollars and Shares in Millions Except Per Share Amounts) (Unaudited)	Mar 31, 2024		Dec 31, 2023
Numerator:
Kemper Corporation Shareholders’ Equity	$	2,589.8	$	2,505.2

Less: Net Unrealized Gains and Losses on Fixed Maturities	618.4		533.8
Less: Change in Discount Rate on Future Life Policyholder Benefits	(272.1)		(160.6)
Less: Goodwill	(1,250.7)		(1,250.7)
Tangible Shareholders’ Equity	$	1,685.4	$	1,627.7

Denominator:
Common Shares Issued and Outstanding	64.358		64.112

Book Value Per Share:
Book Value Per Share	$	40.24	$	39.08

Less: Net Unrealized Gains and Losses on Fixed Maturities	9.61		8.33
Less: Change in Discount Rate on Future Life Policyholder Benefits	(4.23)		(2.51)
Less: Goodwill	(19.43)		(19.51)
Tangible Book Value Per Share	$	26.19	$	25.39

Kemper will host its conference call to discuss first quarter 2024 results on Wednesday, May 1, at 5:00 p.m. Eastern (4:00 p.m. Central). The conference call will be accessible via the internet and by telephone at 888.259.6580, conference ID 70282475. 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.

The Kemper family of companies is one of the nation’s leading specialized insurers. With approximately $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 and Life brands. Kemper serves over 4.8 million policies, is represented by approximately 22,500 agents and brokers, and has approximately 7,700 associates dedicated to meeting the ever-changing needs of its customers.

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. 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:


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


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



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