Exhibit 99.2

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Investor Supplement
Fourth Quarter 2020
The financial statements and financial exhibits included herein are unaudited. These financial statements and exhibits should be read in conjunction with the Company’s periodic reports on Forms 10-K, 10-Q and 8-K filed with the U.S. Securities and Exchange Commission (the “SEC”). The results of operations for interim periods should not be considered indicative of results to be expected for the full year.
Non-GAAP Financial Measures
This document contains non-GAAP financial measures to analyze the Company’s operating performance for the periods presented. Because the Company’s calculation of these measures may differ from similar measures used by other companies, investors should be careful when comparing the Company’s non-GAAP financial measures to those of other companies. For detailed disclosures on non-GAAP financial measures please refer to the “Definitions of Non-GAAP Financial Measures” on Page 34.
Caution Regarding Forward-Looking Statements

This Investor Supplement may contain or incorporate by reference information that includes or is based on forward-looking statements within the meaning of the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements give expectations or forecasts of future events and can be identified by the fact that they relate to future actions, performance or results rather than strictly to historical or current facts.

Any or all forward-looking statements may turn out to be wrong, and, accordingly, readers are cautioned not to place undue reliance on such statements, which speak only as of the date this Investor Supplement was included as an exhibit to the Company's Current Report on Form 8-K. Forward-looking statements involve a number of risks and uncertainties that are difficult to predict and are not guarantees of future performance. Among the general factors that could cause actual results and financial condition to differ materially from estimated results and financial condition are those factors listed in periodic reports filed by Kemper Corporation with the SEC. The COVID-19 outbreak and subsequent global pandemic (“Pandemic”) is an extraordinary event that creates unique uncertainties and risks. Kemper cannot provide any assurances as to the impacts of the Pandemic and related economic conditions on the Company’s operating and financial results.

No assurances can be given that the results and financial condition contemplated in any forward-looking statements will be achieved or will be achieved in any particular timetable. Kemper assumes no obligation to publicly correct or update any forward-looking statements as a result of events or developments subsequent to the date of this Investor Supplement, including any such statements related to the Pandemic. The reader is advised, however, to consult any further disclosures Kemper makes on related subjects in its filings with the SEC.



Kemper Corporation
Investor Supplement
Fourth Quarter 2020
Table of Contents
 
 Page
Consolidated Financial Highlights3
Consolidated Statements of Income4
Consolidated Balance Sheets5
Consolidated Statements of Cash Flows6-7
Capital Metrics8-9
Debt Outstanding and Ratings10
Segment Summary Results:
Revenues11
Operating Profit12
Net Operating Income12
Catastrophe Frequency and Severity13
Specialty Property & Casualty Insurance Segment - Results of Operations and Selected Financial Information14-15
Specialty Personal Automobile Insurance16
Commercial Automobile Insurance17
Preferred Property & Casualty Insurance Segment - Results of Operations and Selected Financial Information18-19
Preferred Personal Automobile Insurance20
Homeowners and Other Personal Insurance21
Homeowners Insurance22
Other Personal Insurance23
Life & Health Insurance Segment - Results of Operations and Selected Financial Information24
Life Insurance25
Accident and Health Insurance25
Property Insurance26
Expenses27
Details of Investment Performance28
Details of Invested Assets29-30
Investment Concentration31
Municipal Bond Securities32
Investments in Limited Liability Companies and Limited Partnerships33
Definitions of Non-GAAP Financial Measures34-35
 




Kemper Corporation
Consolidated Financial Highlights
(Dollars in Millions, Except Per Share Amounts)
(Unaudited)
 Three Months EndedYear Ended
Dec 31,
2020		Sep 30,
2020		Jun 30,
2020		Mar 31,
2020		Dec 31,
2019		Sep 30,
2019		Jun 30,
2019		Mar 31,
2019		Dec 31,
2020		Dec 31,
2019
For Period Ended
Earned Premiums
$1,214.0 $1,206.5 $1,085.3 $1,166.4 $1,145.8 $1,135.2 $1,116.6 $1,074.8 $4,672.2 $4,472.4 
Net Investment Income
102.7 92.1 67.8 85.6 93.9 91.7 96.0 82.7 348.2 364.3 
Other Income
1.9 0.9 1.5 90.3 3.7 7.2 22.7 1.9 94.6 35.5 
Income (Loss) from Change in Fair Value of Equity and Convertible Securities
73.1 45.2 71.6 (117.8)39.2 9.8 25.5 64.4 72.1 138.9 
Net Investment Gains (Loss)
0.4 9.0 4.7 4.5 1.1 (0.1)14.6 12.5 18.6 28.1 
Total Revenues
$1,392.1 $1,353.7 $1,230.9 $1,229.0 $1,283.7 $1,243.8 $1,275.4 $1,236.3 $5,205.7 $5,039.2 
Net Income
$97.5 $122.3 $126.1 $64.0 $124.7 $129.0 $122.1 $155.3 $409.9 $531.1 
Adjusted Consolidated Net Operating Income 1
$105.8 $90.9 $79.2 $162.9 $97.9 $130.0 $91.5 $98.9 $438.8 $418.3 
Per Unrestricted Common Share Amounts:
Basic:
Net Income
$1.49 $1.87 $1.93 $0.96 $1.87 $1.93 $1.87 $2.38 $6.24 $8.04 
Adjusted Consolidated Net Operating Income 1
$1.62 $1.39 $1.21 $2.45 $1.46 $1.95 $1.39 $1.52 $6.68 $6.33 
Diluted:
Net Income
$1.46 $1.83 $1.91 $0.95 $1.85 $1.91 $1.84 $2.35 $6.14 $7.96 
Adjusted Consolidated Net Operating Income 1
$1.59 $1.36 $1.20 $2.43 $1.45 $1.93 $1.38 $1.50 $6.57 $6.27 
Dividends Paid to Shareholders Per Share
$0.30 $0.30 $0.30 $0.30 $0.28 $0.25 $0.25 $0.25 $1.20 $1.03 
At Period End
Total Assets
$14,341.9 $14,090.4 $13,489.4 $12,932.3 $12,989.1 $12,819.9 $12,616.5 $12,182.2 
Insurance Reserves
$5,510.0 $5,461.5 $5,375.0 $5,442.4 $5,471.8 $5,441.3 $5,426.1 $5,370.4 
Debt
$1,172.8 $1,173.0 $777.7 $778.1 $778.4 $778.7 $873.3 $908.5 
Shareholders’ Equity
$4,563.4 $4,347.5 $4,187.9 $3,760.8 $3,972.3 $3,894.2 $3,683.7 $3,320.1 
Shareholders’ Equity Excluding Goodwill1,2
$3,449.4 $3,233.5 $3,073.9 $2,646.8 $2,858.3 $2,780.2 $2,569.7 $2,208.6 
Common Shares Issued and Outstanding (In Millions)
65.436 65.406 65.282 65.365 66.666 66.642 66.564 64.931 
Book Value Per Share2
$69.74 $66.47 $64.15 $57.54 $59.59 $58.43 $55.34 $51.13 
Book Value Per Share Excluding Goodwill1,2
$52.71 $49.44 $47.09 $40.49 $42.87 $41.72 $38.60 $34.01 
Book Value Per Share Excluding Net Unrealized Gains on Fixed Maturities1,2
$58.67 $56.63 $55.13 $53.53 $53.08 $51.51 $49.82 $47.41 
Book Value Per Share Excluding Net Unrealized Gains on Fixed Maturities and Goodwill1,2
$41.65 $39.60 $38.07 $36.49 $36.36 $34.80 $33.08 $30.29 
Debt to Total Capitalization2
20.4 %21.2 %15.7 %17.1 %16.4 %16.7 %19.2 %21.5 %
Rolling 12 Months Return on 5-point Average Shareholders Equity2,3
9.8 %10.8 %11.4 %11.8 %14.8 %12.1 %12.4 %10.8 %
1 Non-GAAP Financial Measure. See page 34 for definition.
2 See Capital Metrics on pages 8-9 for detail calculations.
3 Rolling 12 Months Return on 5-point Average Shareholders Equity is calculated by taking the last 12 months of Net Income (Loss) divided by the 5-point average Shareholders’ Equity. The 5-point Average Shareholders’ Equity is calculated by using a 5-point quarter average of Shareholders’ Equity for the 12 month period.
3


Kemper Corporation
Consolidated Statements of Income
(Dollars in Millions, Except Per Share Amounts)
(Unaudited)
 Three Months EndedYear Ended
 Dec 31,
2020		Sep 30,
2020		Jun 30,
2020		Mar 31,
2020		Dec 31,
2019		Sep 30,
2019		Jun 30,
2019		Mar 31,
2019		Dec 31,
2020		Dec 31,
2019
Revenues:
Earned Premiums$1,214.0 $1,206.5 $1,085.3 $1,166.4 $1,145.8 $1,135.2 $1,116.6 $1,074.8 $4,672.2 $4,472.4 
Net Investment Income102.7 92.1 67.8 85.6 93.9 91.7 96.0 82.7 348.2 364.3 
Other Income1.9 0.9 1.5 90.3 3.7 7.2 22.7 1.9 94.6 35.5 
Income (Loss) from Change in Fair Value of Equity and Convertible Securities73.1 45.2 71.6 (117.8)39.2 9.8 25.5 64.4 72.1 138.9 
Net Realized Gains (Losses) on Sales of Investments(0.1)10.0 11.7 16.5 2.8 1.7 21.3 16.1 38.1 41.9 
Impairment Losses0.5 (1.0)(7.0)(12.0)(1.7)(1.8)(6.7)(3.6)(19.5)(13.8)
Total Revenues1,392.1 1,353.7 1,230.9 1,229.0 1,283.7 1,243.8 1,275.4 1,236.3 5,205.7 5,039.2 
Expenses:
Policyholders’ Benefits and Incurred Losses and Loss Adjustment Expenses863.4 877.5 747.5 835.2 814.9 782.6 825.4 765.4 3,323.6 3,188.3 
Insurance Expenses279.3 276.9 272.7 271.6 265.4 256.0 263.5 234.8 1,100.5 1,019.7 
Loss from Early Extinguishment of Debt— — — — — 5.8 — — — 5.8 
Interest and Other Expenses128.8 47.2 51.0 44.5 46.5 37.9 38.0 41.4 271.5 163.8 
Total Expenses1,271.5 1,201.6 1,071.2 1,151.3 1,126.8 1,082.3 1,126.9 1,041.6 4,695.6 4,377.6 
Income before Income Taxes120.6 152.1 159.7 77.7 156.9 161.5 148.5 194.7 510.1 661.6 
Income Tax Expense(23.1)(29.8)(33.6)(13.7)(32.2)(32.5)(26.4)(39.4)(100.2)(130.5)
Net Income $97.5 $122.3 $126.1 $64.0 $124.7 $129.0 $122.1 $155.3 $409.9 $531.1 
Income Per Unrestricted Share:
Basic$1.49 $1.87 $1.93 $0.96 $1.87 $1.93 $1.87 $2.38 $6.24 $8.04 
Diluted$1.46 $1.83 $1.91 $0.95 $1.85 $1.91 $1.84 $2.35 $6.14 $7.96 
Net Income Per Unrestricted Share:
Basic$1.49 $1.87 $1.93 $0.96 $1.87 $1.93 $1.87 $2.38 $6.24 $8.04 
Diluted$1.46 $1.83 $1.91 $0.95 $1.85 $1.91 $1.84 $2.35 $6.14 $7.96 
Dividends Paid to Shareholders Per Share$0.30 $0.30 $0.30 $0.30 $0.28 $0.25 $0.25 $0.25 $1.20 $1.03 
Weighted Average Unrestricted Common Shares Outstanding (in Millions)65.414 65.363 65.258 66.516 66.650 66.622 65.408 64.815 65.636 65.881 
 

4


Kemper Corporation
Consolidated Balance Sheets
(Dollars in Millions)
(Unaudited)
Dec 31,
2020		Sep 30,
2020		Jun 30,
2020		Mar 31,
2020		Dec 31,
2019		Sep 30,
2019		Jun 30,
2019		Mar 31,
2019
Assets:
Investments:
Fixed Maturities at Fair Value$7,605.9 $7,504.8 $7,480.4 $6,998.5 $6,922.1 $6,883.6 $6,540.2 $6,573.1 
Equity Securities at Fair Value858.5 788.2 783.3 709.8 907.3 928.7 923.3 916.9 
Equity Securities at Modified Cost40.1 48.4 48.1 44.8 41.9 41.2 38.1 39.2 
Equity Method Limited Liability Investments225.3 206.2 209.9 226.3 220.4 213.4 219.7 197.8 
Convertible Securities at Fair Value39.9 36.3 35.0 32.8 37.3 35.6 34.3 33.8 
Short-term Investments at Cost which Approximates Fair Value875.4 628.8 154.2 166.7 470.9 424.2 642.5 350.4 
Other Investments779.0 762.8 757.5 760.2 661.5 561.6 554.3 485.9 
Total Investments10,424.1 9,975.5 9,468.4 8,939.1 9,261.4 9,088.3 8,952.4 8,597.1 
Cash206.1 352.2 389.3 301.3 136.8 133.6 104.4 107.0 
Receivables from Policyholders1,194.5 1,249.3 1,165.3 1,219.1 1,117.1 1,139.8 1,095.2 1,048.6 
Other Receivables222.4 214.0 207.1 207.8 219.7 217.1 248.1 254.6 
Deferred Policy Acquisition Costs589.3 578.2 560.8 551.5 537.7 536.5 521.0 499.2 
Goodwill1,114.0 1,114.0 1,114.0 1,114.0 1,114.0 1,114.0 1,114.0 1,111.5 
Current Income Tax Assets15.6 33.1 3.5 17.8 44.7 44.1 41.0 19.7 
Other Assets575.9 574.1 581.0 581.7 557.7 546.5 540.4 544.5 
Total Assets$14,341.9 $14,090.4 $13,489.4 $12,932.3 $12,989.1 $12,819.9 $12,616.5 $12,182.2 
Liabilities and Shareholders’ Equity:
Insurance Reserves:
Life and Health$3,527.5 $3,511.5 $3,497.7 $3,500.8 $3,502.0 $3,499.7 $3,514.2 $3,501.7 
Property and Casualty1,982.5 1,950.0 1,877.3 1,941.6 1,969.8 1,941.6 1,911.9 1,868.7 
Total Insurance Reserves5,510.0 5,461.5 5,375.0 5,442.4 5,471.8 5,441.3 5,426.1 5,370.4 
Unearned Premiums1,615.1 1,681.6 1,642.6 1,621.4 1,545.5 1,574.9 1,545.6 1,499.5 
Policyholder Contract Liabilities467.0 503.7 520.3 430.5 309.8 204.1 221.8 254.5 
Deferred Income Tax Liabilities285.7 245.5 226.8 116.0 178.2 175.3 124.1 82.6 
Liability for Unrecognized Tax Benefits— — — — — — — 3.9 
Accrued Expenses and Other Liabilities727.9 677.6 759.1 783.1 733.1 751.4 741.9 742.7 
Long-term Debt, Current and Non-current, at Amortized Cost1,172.8 1,173.0 777.7 778.1 778.4 778.7 873.3 908.5 
Total Liabilities9,778.5 9,742.9 9,301.5 9,171.5 9,016.8 8,925.7 8,932.8 8,862.1 
Shareholders’ Equity:
Common Stock6.5 6.5 6.5 6.5 6.7 6.7 6.7 6.5 
Paid-in Capital1,805.2 1,798.5 1,792.5 1,788.2 1,819.2 1,812.9 1,806.4 1,673.0 
Retained Earnings2,071.2 1,993.5 1,891.6 1,791.2 1,810.3 1,704.5 1,593.7 1,489.7 
Accumulated Other Comprehensive Income680.5 549.0 497.3 174.9 336.1 370.1 276.9 150.9 
Total Shareholders’ Equity4,563.4 4,347.5 4,187.9 3,760.8 3,972.3 3,894.2 3,683.7 3,320.1 
Total Liabilities and Shareholders’ Equity$14,341.9 $14,090.4 $13,489.4 $12,932.3 $12,989.1 $12,819.9 $12,616.5 $12,182.2 
5


Kemper Corporation
Consolidated Statements of Cash Flows
(Dollars in Millions)
 (Unaudited)
 Year Ended
 Dec 31,
2020		Dec 31,
2019
Cash Flows from Operating Activities:
Net Income$409.9 $531.1 
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities:
Net Realized Investment Gains(38.1)(41.9)
Impairment Losses19.5 13.8 
Depreciation and Amortization of Property, Equipment and Software36.2 32.8 
Amortization of Intangibles Assets Acquired18.8 29.7 
Settlement Costs Related to Defined Benefit Pension Plan64.1 — 
Contribution to Defined Benefit Pension Plan — (55.3)
Loss from Early Extinguishment of Debt— 5.8 
Change in Accumulated Undistributed Earnings of Equity Method Limited Liability Investments(4.0)10.9 
Decrease (Increase) in Value of Equity and Convertible Securities at Fair Value(72.1)(138.9)
Changes in:
Receivables from Policyholders(77.4)(110.1)
Reinsurance Recoverables16.8 35.6 
Deferred Policy Acquisition Costs(52.3)(66.9)
Insurance Reserves38.3 102.3 
Unearned Premiums69.6 121.2 
Income Taxes60.5 58.8 
Other(64.7)5.4 
Net Cash Provided by Operating Activities425.1 534.3 
6


Kemper Corporation
Consolidated Statements of Cash Flows
(Dollars in Millions)
 (Unaudited)
 Year Ended
 Dec 31,
2020		Dec 31,
2019
Cash Flows from Investing Activities:
Proceeds from Sales, Calls, and Maturities of Fixed Maturities975.9 1,229.1 
Proceeds from the Sales of Investments:
Equity Securities463.0 217.3 
Real Estate Investments5.4 — 
Mortgage Loans25.5 17.2 
Other Investments45.2 29.5 
Fixed Maturities(1,293.3)(1,284.9)
Equity Securities(347.7)(307.0)
Real Estate Investments(0.5)(1.4)
Corporate-owned Life Insurance(100.0)(150.0)
Mortgage Loans(52.7)(44.5)
Other Investments(43.5)(73.8)
Net Purchases of Short-term Investments(394.3)(176.0)
Acquisition of Software and Long-lived Assets(53.4)(84.0)
Other13.4 (4.9)
Net Cash Provided (Used In) by Investing Activities(757.0)(633.4)
Cash Flows from Financing Activities:
Net Proceeds from Issuance of Long-term Debt395.6 49.9 
Repayment of Long-term Debt— (185.0)
Proceeds from Policyholder Contract Liabilities454.4 615.8 
Repayment of Policyholder Contract Liabilities(269.3)(383.6)
Proceeds from Issuance of Common Stock, Net of Transaction Costs— 127.5 
Proceeds from Shares Issued under Employee Stock Purchase Plan4.4 1.6 
Common Stock Repurchases(110.4)— 
Dividends and Dividend Equivalents Paid(78.9)(67.8)
Other5.4 2.4 
Net Cash Provided by Financing Activities401.2 160.8 
Increase in Cash69.3 61.7 
Cash, Beginning of Year136.8 75.1 
Cash, End of Period$206.1 $136.8 
7


Kemper Corporation
Capital Metrics
(Dollars and Shares in Millions, Except Per Share Amounts)
(Unaudited)
 Three Months Ended
 Dec 31,
2020		Sep 30,
2020		Jun 30,
2020		Mar 31,
2020		Dec 31,
2019		Sep 30,
2019		Jun 30,
2019		Mar 31,
2019
Book Value Per Share   
Numerator
Shareholders’ Equity$4,563.4 $4,347.5 $4,187.9 $3,760.8 $3,972.3 $3,894.2 $3,683.7 $3,320.1 
Less: Goodwill(1,114.0)(1,114.0)(1,114.0)(1,114.0)(1,114.0)(1,114.0)(1,114.0)(1,111.5)
Shareholders’ Equity Excluding Goodwill1
$3,449.4 $3,233.5 $3,073.9 $2,646.8 $2,858.3 $2,780.2 $2,569.7 $2,208.6 
Shareholders’ Equity$4,563.4 $4,347.5 $4,187.9 $3,760.8 $3,972.3 $3,894.2 $3,683.7 $3,320.1 
Less: Net Unrealized Gains on Fixed Maturities(724.0)(643.7)(588.6)(261.6)(434.0)(461.3)(367.8)(241.9)
Shareholders’ Equity Excluding Net Unrealized Gains on Fixed Maturities1
$3,839.4 $3,703.8 $3,599.3 $3,499.2 $3,538.3 $3,432.9 $3,315.9 $3,078.2 
Less: Goodwill(1,114.0)(1,114.0)(1,114.0)(1,114.0)(1,114.0)(1,114.0)(1,114.0)(1,111.5)
Shareholders’ Equity Excluding Net Unrealized Gains on Fixed Maturities and Goodwill1
$2,725.4 $2,589.8 $2,485.3 $2,385.2 $2,424.3 $2,318.9 $2,201.9 $1,966.7 
Denominator
Common Shares Issued and Outstanding65.436 65.406 65.282 65.365 66.666 66.642 66.564 64.931 
Book Value Per Share$69.74 $66.47 $64.15 $57.54 $59.59 $58.43 $55.34 $51.13 
Book Value Per Share Excluding Goodwill1
$52.71 $49.44 $47.09 $40.49 $42.87 $41.72 $38.60 $34.01 
Book Value Per Share Excluding Net Unrealized Gains on Fixed Maturities1
$58.67 $56.63 $55.13 $53.53 $53.08 $51.51 $49.82 $47.41 
Book Value Per Share Excluding Net Unrealized Gains on Fixed Maturities and Goodwill1
$41.65 $39.60 $38.07 $36.49 $36.36 $34.80 $33.08 $30.29 
Return on Shareholders’ Equity
Numerator
Rolling 12 Months Net Income$409.9 $437.1 $443.8 $439.8 $531.1 $412.9 $376.1 $291.6 
Denominator (5-point Average)
5-point Average Shareholders’ Equity$4,166.4 $4,032.5 $3,899.8 $3,726.2 $3,584.1 $3,402.4 $3,032.7 $2,708.7 
Rolling 12 Months Return on Average Shareholders' Equity (5-point Average)9.8 %10.8 %11.4 %11.8 %14.8 %12.1 %12.4 %10.8 %
Return on Shareholders’ Equity Excluding Goodwill1
Denominator (5-point Average)
5-point Average Shareholders’ Equity Excluding Goodwill1
$3,052.4 $2,918.5 $2,785.8 $2,612.7 $2,470.9 $2,293.8 $2,082.3 $1,916.5 
Rolling 12 Months Return on Average Shareholders' Equity Excluding Goodwill (5-point Average)1
13.4 %15.0 %15.9 %16.8 %21.5 %18.0 %18.1 %15.2 %
Return on Shareholders’ Equity Excluding Net Unrealized Gains on Fixed Maturities1
Denominator (5-point Average)
5-point Average Shareholders’ Equity Excluding Net Unrealized Gains on Fixed Maturities1
$3,636.0 $3,554.7 $3,477.1 $3,372.9 $3,261.0 $3,144.6 $2,838.0 $2,549.5 
Rolling 12 Months Return on Average Shareholders' Equity Excluding Net Unrealized Gains on Fixed Maturities (5-point Average)1
11.3 %12.3 %12.8 %13.0 %16.3 %13.1 %13.3 %11.4 %
Return on Shareholders’ Equity Excluding Net Unrealized Gains on Fixed Maturities and Goodwill1
Denominator (5-point Average)
5-point Average Shareholders’ Equity Excluding Net Unrealized Gains on Fixed Maturities and Goodwill1
$2,522.0 $2,440.7 $2,363.1 $2,259.4 $2,147.8 $2,036.0 $1,887.6 $1,757.3 
Rolling 12 Months Return on Average Shareholders' Equity Excluding Net Unrealized Gains on Fixed Maturities and Goodwill (5-point Average)1
16.3 %17.9 %18.8 %19.5 %24.7 %20.3 %19.9 %16.6 %
1 Non-GAAP financial measure. See definitions beginning on page 34
8


Kemper Corporation
Capital Metrics
(Dollars and Shares in Millions, Except Per Share Amounts)
(Unaudited)
 Three Months Ended
 Dec 31,
2020		Sep 30,
2020		Jun 30,
2020		Mar 31,
2020		Dec 31,
2019		Sep 30,
2019		Jun 30,
2019		Mar 31,
2019
Debt and Total Capitalization
Debt$1,172.8 $1,173.0 $777.7 $778.1 $778.4 $778.7 $873.3 $908.5 
Shareholders’ Equity4,563.4 4,347.5 4,187.9 3,760.8 3,972.3 3,894.2 3,683.7 3,320.1 
Total Capitalization$5,736.2 $5,520.5 $4,965.6 $4,538.9 $4,750.7 $4,672.9 $4,557.0 $4,228.6 
Ratio of Debt to Shareholders’ Equity25.7 %27.0 %18.6 %20.7 %19.6 %20.0 %23.7 %27.4 %
Ratio of Debt to Total Capitalization20.4 %21.2 %15.7 %17.1 %16.4 %16.7 %19.2 %21.5 %
Parent Company Liquidity
Kemper Holding Company Cash and Investments$733.2 $738.7 $270.5 $199.1 $206.8 $169.1 $312.7 $118.6 
Borrowings Available Under Credit Agreement400.0 400.0 400.0 400.0 400.0 400.0 400.0 300.0 
Parent Company Liquidity$1,133.2 $1,138.7 $670.5 $599.1 $606.8 $569.1 $712.7 $418.6 
Capital Returned to Shareholders
Cash Dividends Paid$19.7 $19.7 $19.7 $20.0 $18.7 $16.7 $16.2 $16.2 
 

9


Kemper Corporation
Debt Outstanding, FHLB Advances and Ratings
(Dollars in Millions)
(Unaudited)
Dec 31,
2020		Sep 30,
2020		Jun 30,
2020		Mar 31, 2020Dec 31, 2019Sep 30, 2019Jun 30, 2019Mar 31, 2019
Kemper Corporation:
Term Loan due June 29, 2020$— $— $— $— $— $— $— $34.9 
Term Loan due July 5, 202349.9 49.9 49.9 49.9 49.9 49.9 — — 
Senior Notes at Amortized Cost:
5.000% Senior Notes due September 19, 2022278.3 278.7 279.1 279.6 279.9 280.3 280.6 281.0 
4.350% Senior Notes due February 15, 2025448.8 448.8 448.7 448.6 448.6 448.5 448.5 448.4 
2.400% Senior Notes due September 30, 2030395.8 395.6 — — — — — — 
7.375% Subordinated Debentures due February 27, 2054 at Amortized Cost— — — — — — 144.2 144.2 
Long-term Debt Outstanding$1,172.8 $1,173.0 $777.7 $778.1 $778.4 $778.7 $873.3 $908.5 
Federal Home Loan Bank Advances to Insurance Subsidiaries:
Reported as Policyholder Contract Liabilities:
Federal Home Loan Bank of Chicago$407.8 $444.1 $454.3 $364.2 $243.4 $137.6 $155.0 $187.7 
Reported as Debt Outstanding:
Federal Home Loan Bank of Dallas$— $— $— $— $— $— $— $— 
Federal Home Loan Bank of Chicago$— $— $— $— $— $— $— $— 
Federal Home Loan Bank of San Francisco$— $— $— $— $— $— $— $— 
 A.M. BestMoody’sS&PFitch 
As of Date of Financial Supplement
Kemper Debt Ratings:
Senior Unsecured DebtBBBBaa3BBBBBB
Insurance Company Financial Strength Ratings:
Trinity Universal Insurance Company
AA3AA
United Insurance Company of America
AA3A-A-
Reserve National Insurance Company
ANRNRNR
Infinity Insurance Company
AA3ANR



NR - Not Rated

10


Kemper Corporation
Segment Revenues
(Dollars in Millions)
(Unaudited)
 Three Months EndedYear Ended
 Dec 31,
2020		Sep 30,
2020		Jun 30,
2020		Mar 31,
2020		Dec 31,
2019		Sep 30,
2019		Jun 30,
2019		Mar 31,
2019		Dec 31,
2020		Dec 31,
2019
Revenues:   
Specialty Property & Casualty Insurance:
Earned Premiums:
Specialty Automobile$796.1 $792.2 $689.8 $753.2 $733.1 $719.2 $703.7 $669.6 $3,031.3 $2,825.6 
Commercial Automobile86.3 79.2 69.2 69.3 66.6 64.2 62.3 59.7 304.0 252.8 
Total Specialty Property & Casualty Insurance Earned Premiums882.4 871.4 759.0 822.5 799.7 783.4 766.0 729.3 3,335.3 3,078.4 
Net Investment Income37.9 30.5 16.9 28.8 28.3 28.8 28.9 21.5 114.1 107.5 
Other Income0.4 0.4 0.1 0.9 0.8 4.4 1.0 0.8 1.8 7.0 
Total Specialty Property & Casualty Insurance Revenues920.7 902.3 776.0 852.2 828.8 816.6 795.9 751.6 3,451.2 3,192.9 
Preferred Property & Casualty Insurance:
Earned Premiums:
Preferred Automobile107.1 110.6 99.1 114.9 117.2 119.7 117.9 115.4 431.7 470.2 
Homeowners53.3 55.0 55.6 56.8 58.7 61.5 60.8 60.3 220.7 241.3 
Other Personal8.8 8.9 8.9 9.2 9.3 9.8 9.8 9.9 35.8 38.8 
Total Preferred Property & Casualty Insurance Earned Premiums169.2 174.5 163.6 180.9 185.2 191.0 188.5 185.6 688.2 750.3 
Net Investment Income13.4 10.3 4.3 9.7 11.5 12.0 12.3 8.3 37.7 44.1 
Other Income— — 0.1 — — — — — 0.1 — 
Total Preferred Property & Casualty Insurance Revenues182.6 184.8 168.0 190.6 196.7 203.0 200.8 193.9 726.0 794.4 
Life & Health Insurance:
Earned Premiums:
Life96.5 96.3 95.7 97.2 95.6 96.2 97.0 95.8 385.7 384.6 
Accident and Health50.2 48.9 50.8 49.4 48.5 47.6 47.9 46.9 199.3 190.9 
Property15.7 15.4 16.2 16.4 16.8 17.0 17.2 17.2 63.7 68.2 
Total Life & Health Insurance Earned Premiums162.4 160.6 162.7 163.0 160.9 160.8 162.1 159.9 648.7 643.7 
Net Investment Income52.8 50.7 44.3 51.0 52.0 49.7 53.0 51.7 198.8 206.4 
Other Income— — 0.5 0.1 2.9 2.9 1.6 1.1 0.6 8.5 
Total Life & Health Insurance Revenues215.2 211.3 207.5 214.1 215.8 213.4 216.7 212.7 848.1 858.6 
Total Segment Revenues1,318.5 1,298.4 1,151.5 1,256.9 1,241.3 1,233.0 1,213.4 1,158.2 5,025.3 4,845.9 
Income (Loss) from Change in Fair Value of Equity and Convertible Securities73.1 45.2 71.6 (117.8)39.2 9.8 25.5 64.4 72.1 138.9 
Net Realized Gains on Sales of Investments(0.1)10.0 11.7 16.5 2.8 1.7 21.3 16.1 38.1 41.9 
Impairment Losses0.5 (1.0)(7.0)(12.0)(1.7)(1.8)(6.7)(3.6)(19.5)(13.8)
Other0.1 1.1 3.1 85.4 2.1 1.1 21.9 1.2 89.7 26.3 
Total Revenues$1,392.1 $1,353.7 $1,230.9 $1,229.0 $1,283.7 $1,243.8 $1,275.4 $1,236.3 $5,205.7 $5,039.2 
 

11


Kemper Corporation
Segment Operating Results
(Dollars in Millions)
(Unaudited)
 Three Months EndedYear Ended
 Dec 31,
2020		Sep 30,
2020		Jun 30,
2020		Mar 31,
2020		Dec 31,
2019		Sep 30,
2019		Jun 30,
2019		Mar 31,
2019		Dec 31,
2020		Dec 31,
2019
Segment Operating Profit:  
Specialty Property & Casualty Insurance$111.5 $149.9 $84.5 $75.0 $78.5 $98.6 $79.4 $99.4 $420.9 $355.9 
Preferred Property & Casualty Insurance19.8 (41.8)0.8 23.0 16.1 26.5 6.4 3.3 1.8 52.3 
Life & Health Insurance9.6 15.2 19.9 26.5 35.5 41.0 16.1 29.3 71.2 121.9 
Total Segment Operating Profit140.9 123.3 105.2 124.5 130.1 166.1 101.9 132.0 493.9 530.1 
Partial Satisfaction of Judgment— — — 89.4 — — 20.1 — 89.4 20.1 
Other(9.7)(11.0)(4.7)(11.1)(7.3)(3.1)(12.4)(8.6)(36.5)(31.4)
Corporate and Other Operating Income (Loss)(9.7)(11.0)(4.7)78.3 (7.3)(3.1)7.7 (8.6)52.9 (11.3)
Total Operating Profit131.2 112.3 100.5 202.8 122.8 163.0 109.6 123.4 546.8 518.8 
Income From:
Change in Fair Value of Equity and Convertible Securities73.1 45.2 71.6 (117.8)39.2 9.8 25.5 64.4 72.1 138.9 
Net Realized Gains on Sales of Investments(0.1)10.0 11.7 16.5 2.8 1.7 21.3 16.1 38.1 41.9 
Impairment Losses0.5 (1.0)(7.0)(12.0)(1.7)(1.8)(6.7)(3.6)(19.5)(13.8)
Acquisition Related Transaction Integration and Other Costs(20.0)(14.4)(17.1)(11.8)(6.2)(5.4)(1.2)(5.6)(63.3)(18.4)
Debt Extinguishment, Pension and Other Charges(64.1)— — — — (5.8)— — (64.1)(5.8)
Income before Income Taxes$120.6 $152.1 $159.7 $77.7 $156.9 $161.5 $148.5 $194.7 $510.1 $661.6 
Segment Net Operating Income:
Specialty Property & Casualty Insurance$91.1 $119.2 $67.5 $60.1 $62.3 $78.5 $62.7 $79.6 $337.9 $283.1 
Preferred Property & Casualty Insurance16.9 (32.7)0.9 18.4 12.8 21.1 5.2 2.8 3.5 41.9 
Life & Health Insurance9.4 12.2 16.1 22.3 28.9 33.4 13.3 23.1 60.0 98.7 
Total Segment Net Operating Income117.4 98.7 84.5 100.8 104.0 133.0 81.2 105.5 401.4 423.7 
Corporate and Other Net Operating Income (Loss) From:
Partial Satisfaction of Legal Judgment— — — 70.6 — — 15.9 — 70.6 15.9 
Other(11.6)(7.8)(5.3)(8.5)(6.1)(3.0)(5.6)(6.6)(33.2)(21.3)
Corporate and Other Net Operating Income (Loss)(11.6)(7.8)(5.3)62.1 (6.1)(3.0)10.3 (6.6)37.4 (5.4)
Adjusted Consolidated Net Operating Income105.8 90.9 79.2 162.9 97.9 130.0 91.5 98.9 438.8 418.3 
Net Income (Loss) From:
Change in Fair Value of Equity and Convertible Securities57.8 35.7 56.6 (93.1)30.9 7.8 20.1 50.9 57.0 109.7 
Net Realized Gains on Sales of Investments(0.1)7.9 9.3 13.0 2.2 1.4 16.8 12.7 30.1 33.1 
Impairment Losses0.4 (0.8)(5.5)(9.5)(1.3)(1.5)(5.3)(2.8)(15.4)(10.9)
Acquisition Related Transaction, Integration and Other Costs(15.8)(11.4)(13.5)(9.3)(5.0)(4.1)(1.0)(4.4)(50.0)(14.5)
Debt Extinguishment, Pension and Other Charges(50.6)— — — — (4.6)— — (50.6)(4.6)
Net Income$97.5 $122.3 $126.1 $64.0 $124.7 $129.0 $122.1 $155.3 $409.9 $531.1 
 


12


Kemper Corporation
Catastrophe Frequency and Severity
(Dollars in Millions)
(Unaudited)
Year ended December 31, 2020
Specialty Property & Casualty Insurance SegmentPreferred Property & Casualty Insurance SegmentLife & Health Insurance SegmentConsolidated
Number of EventsLosses and LAENumber of EventsLosses and LAENumber of EventsLosses and LAENumber of EventsLosses and LAE
Range of Losses and LAE Per Event:
Below $555 $12.3 48 $42.0 34 $12.4 60 $51.2 
$5 - $10— — 5 40.0 — — 5 40.2 
$10 - $15— — — — — — — — 
$15 - $20— — — — — — 1 15.3 
$20 - $25— — — — — — — — 
Greater Than $25— — — — — — — — 
Total55 $12.3 53 $82.0 34 $12.4 66 $106.7 
Year ended December 31, 2019
Specialty Property & Casualty Insurance SegmentPreferred Property & Casualty Insurance SegmentLife & Health Insurance SegmentConsolidated
Number of EventsLosses and LAENumber of EventsLosses and LAENumber of EventsLosses and LAENumber of EventsLosses and LAE
Range of Losses and LAE Per Event:
Below $541 $11.1 53 $30.9 29 $3.1 56 $42.4 
$5 - $10— — 3 19.0 — — 3 20.8 
$10 - $15— — 1 13.1 — — 1 14.0 
$15 - $20— — — — — — — — 
$20 - $25— — — — — — — — 
Greater Than $25— — — — — — — — 
Total41 $11.1 57 $63.0 29 $3.1 60 $77.2 
13

Kemper Corporation
Specialty Property & Casualty Insurance Segment
Results of Operations and Selected Financial Information
(Dollars in Millions)
(Unaudited)
 Three Months EndedYear Ended
 Dec 31,
2020		Sep 30,
2020		Jun 30,
2020		Mar 31,
2020		Dec 31,
2019		Sep 30,
2019		Jun 30,
2019		Mar 31,
2019		Dec 31,
2020		Dec 31,
2019
Results of Operations   
Net Premiums Written$829.2 $914.2 $780.9 $911.2 $782.5 $815.0 $804.7 $809.1 $3,435.5 $3,211.3 
Earned Premiums$882.4 $871.4 $759.0 $822.5 $799.7 $783.4 $766.0 $729.3 $3,335.3 $3,078.4 
Net Investment Income37.9 30.5 16.9 28.8 28.3 28.8 28.9 21.5 114.1 107.5 
Other Income0.4 0.4 0.1 0.9 0.8 4.4 1.0 0.8 1.8 7.0 
Total Revenues920.7 902.3 776.0 852.2 828.8 816.6 795.9 751.6 3,451.2 3,192.9 
Incurred Losses and LAE related to:
Current Year:
Non-catastrophe Losses and LAE626.2 589.0 515.8 619.8 599.5 579.4 579.2 544.3 2,350.8 2,302.4 
Catastrophe Losses and LAE5.5 2.1 4.5 0.2 3.8 2.3 4.4 0.6 12.3 11.1 
Prior Years:
Non-catastrophe Losses and LAE(1.7)1.9 9.6 5.3 (4.1)(4.1)(8.6)(18.3)15.1 (35.1)
Catastrophe Losses and LAE0.1 (0.1)— 0.2 0.2 0.2 (0.1)0.2 0.2 0.5 
Total Incurred Losses and LAE630.1 592.9 529.9 625.5 599.4 577.8 574.9 526.8 2,378.4 2,278.9 
Insurance Expenses179.1 159.5 161.2 152.1 150.7 139.2 140.9 124.8 651.9 555.6 
Other Expenses— — 0.4 (0.4)0.2 1.0 0.7 0.6 — 2.5 
Operating Profit111.5 149.9 84.5 75.0 78.5 98.6 79.4 99.4 420.9 355.9 
Income Tax Expense(20.4)(30.7)(17.0)(14.9)(16.2)(20.1)(16.7)(19.8)(83.0)(72.8)
Segment Net Operating Income $91.1 $119.2 $67.5 $60.1 $62.3 $78.5 $62.7 $79.6 $337.9 $283.1 
Ratios Based On Earned Premiums
Current Year Non-catastrophe Losses and LAE Ratio71.0 %67.6 %67.9 %75.4 %75.0 %74.0 %75.6 %74.6 %70.4 %74.7 %
Current Year Catastrophe Losses and LAE Ratio0.6 0.2 0.6 — 0.5 0.3 0.6 0.1 0.4 0.4 
Prior Years Non-catastrophe Losses and LAE Ratio(0.2)0.2 1.3 0.6 (0.5)(0.5)(1.1)(2.5)0.5 (1.1)
Prior Years Catastrophe Losses and LAE Ratio— — — — — — — — — — 
Total Incurred Loss and LAE Ratio71.4 68.0 69.8 76.0 75.0 73.8 75.1 72.2 71.3 74.0 
Insurance Expense Ratio20.3 18.3 21.2 18.5 18.8 17.8 18.4 17.1 19.5 18.0 
Combined Ratio91.7 %86.3 %91.0 %94.5 %93.8 %91.6 %93.5 %89.3 %90.8 %92.0 %
Underlying Combined Ratio 1
Current Year Non-catastrophe Losses and LAE Ratio71.0 %67.6 %67.9 %75.4 %75.0 %74.0 %75.6 %74.6 %70.4 %74.7 %
Insurance Expense Ratio20.3 18.3 21.2 18.5 18.8 17.8 18.4 17.1 19.5 18.0 
Underlying Combined Ratio91.3 %85.9 %89.1 %93.9 %93.8 %91.8 %94.0 %91.7 %89.9 %92.7 %
Non-GAAP Measure Reconciliation
Combined Ratio as Reported91.7 %86.3 %91.0 %94.5 %93.8 %91.6 %93.5 %89.3 %90.8 %92.0 %
Less:
Current Year Catastrophe Losses and LAE Ratio0.6 0.2 0.6 — 0.5 0.3 0.6 0.1 0.4 0.4 
Prior Years Non-catastrophe Losses and LAE Ratio(0.2)0.2 1.3 0.6 (0.5)(0.5)(1.1)(2.5)0.5 (1.1)
Prior Years Catastrophe Losses and LAE Ratio— — — — — — — — — — 
Underlying Combined Ratio91.3 %85.9 %89.1 %93.9 %93.8 %91.8 %94.0 %91.7 %89.9 %92.7 %
1 Underlying Combined Ratio is a non-GAAP measure, which is computed as the difference between three operating ratios: the combined ratio, the effect of catastrophes (excluding development of prior-year catastrophes) on the combined ratio and the effect of prior-year reserve development at the reporting date (including development on prior-year catastrophes) on the combined ratio.
14

Kemper Corporation
Specialty Property & Casualty Insurance Segment
Results of Operations and Selected Financial Information (continued)
(Dollars in Millions)
(Unaudited)
Dec 31,
2020		Sep 30,
2020		Jun 30,
2020		Mar 31, 2020Dec 31, 2019Sep 30, 2019Jun 30, 2019Mar 31, 2019
Insurance Reserves:
Non-Standard Automobile$1,308.3 $1,271.9 $1,252.6 $1,326.3 $1,321.9 $1,278.7 $1,229.7 $1,181.2 
Commercial Automobile236.5 223.0 221.0 215.1 229.1 223.9 218.9 218.4 
Insurance Reserves$1,544.8 $1,494.9 $1,473.6 $1,541.4 $1,551.0 $1,502.6 $1,448.6 $1,399.6 
Insurance Reserves:
Loss and Allocated LAE Reserves:
Case and Allocated LAE$744.6 $718.8 $667.9 $716.0 $730.0 $760.2 $721.6 $696.1 
Incurred but Not Reported653.6 631.8 660.8 679.1 672.2 598.8 587.8 565.6 
Total Loss Reserves1,398.2 1,350.6 1,328.7 1,395.1 1,402.2 1,359.0 1,309.4 1,261.7 
Unallocated LAE Reserves146.6 144.3 144.9 146.3 148.8 143.6 139.2 137.9 
Insurance Reserves$1,544.8 $1,494.9 $1,473.6 $1,541.4 $1,551.0 $1,502.6 $1,448.6 $1,399.6 

15


Kemper Corporation
Specialty Property & Casualty Insurance Segment
Specialty Personal Automobile Insurance - Results of Operations and Selected Financial Information
(Dollars in Millions)
(Unaudited)
 Three Months EndedYear Ended
 Dec 31,
2020		Sep 30,
2020		Jun 30,
2020		Mar 31,
2020		Dec 31,
2019		Sep 30,
2019		Jun 30,
2019		Mar 31,
2019		Dec 31,
2020		Dec 31,
2019
Results of Operations   
Net Premiums Written$736.3 $819.4 $700.5 $830.3 $714.9 $749.5 $734.5 $742.2 $3,086.5 $2,941.1 
Earned Premiums$796.1 $792.2 $689.8 $753.2 $733.1 $719.2 $703.7 $669.6 $3,031.3 $2,825.6 
Net Investment Income32.4 26.2 15.2 24.8 24.5 24.9 24.6 18.4 98.6 92.4 
Other Income0.4 0.4 0.1 0.8 0.8 4.3 0.9 0.8 1.7 6.8 
Total Revenues828.9 818.8 705.1 778.8 758.4 748.4 729.2 688.8 3,131.6 2,924.8 
Incurred Losses and LAE related to:
Current Year:
Non-catastrophe Losses and LAE569.1 543.4 472.4 576.0 557.5 538.2 537.0 498.8 2,160.9 2,131.5 
Catastrophe Losses and LAE5.2 2.0 4.2 0.2 3.3 2.0 4.1 0.5 11.6 9.9 
Prior Years:
Non-catastrophe Losses and LAE(3.1)2.1 11.2 17.8 (4.4)(1.8)(3.7)(14.4)28.0 (24.3)
Catastrophe Losses and LAE— (0.1)0.1 0.2 0.2 0.2 — 0.1 0.2 0.5 
Total Incurred Losses and LAE571.2 547.4 487.9 594.2 556.6 538.6 537.4 485.0 2,200.7 2,117.6 
Insurance Expenses162.8 145.6 146.7 139.2 138.1 128.4 128.9 114.7 594.3 510.1 
Other Expenses— — 0.4 (0.4)0.2 1.0 0.7 0.6 — 2.5 
Operating Profit94.9 125.8 70.1 45.8 63.5 80.4 62.2 88.5 336.6 294.6 
Income Tax Expense(17.5)(25.7)(14.2)(8.8)(10.5)(18.4)(13.0)(17.8)(66.2)(59.7)
Total Product Line Net Operating Income$77.4 $100.1 $55.9 $37.0 $53.0 $62.0 $49.2 $70.7 $270.4 $234.9 
Ratios Based On Earned Premiums
Current Year Non-catastrophe Losses and LAE Ratio71.4 %68.5 %68.5 %76.5 %76.0 %74.9 %76.3 %74.5 %71.3 %75.4 %
Current Year Catastrophe Losses and LAE Ratio0.7 0.3 0.6 — 0.5 0.3 0.6 0.1 0.4 0.4 
Prior Years Non-catastrophe Losses and LAE Ratio(0.4)0.3 1.6 2.4 (0.6)(0.3)(0.5)(2.2)0.9 (0.9)
Prior Years Catastrophe Losses and LAE Ratio— — — — — — — — — — 
Total Incurred Loss and LAE Ratio71.7 69.1 70.7 78.9 75.9 74.9 76.4 72.4 72.6 74.9 
Insurance Expense Ratio20.4 18.4 21.3 18.5 18.8 17.9 18.3 17.1 19.6 18.1 
Combined Ratio92.1 %87.5 %92.0 %97.4 %94.7 %92.8 %94.7 %89.5 %92.2 %93.0 %
Underlying Combined Ratio 1
Current Year Non-catastrophe Losses and LAE Ratio71.4 %68.5 %68.5 %76.5 %76.0 %74.9 %76.3 %74.5 %71.3 %75.4 %
Insurance Expense Ratio20.4 18.4 21.3 18.5 18.8 17.9 18.3 17.1 19.6 18.1 
Underlying Combined Ratio91.8 %86.9 %89.8 %95.0 %94.8 %92.8 %94.6 %91.6 %90.9 %93.5 %
Non-GAAP Measure Reconciliation
Combined Ratio92.1 %87.5 %92.0 %97.4 %94.7 %92.8 %94.7 %89.5 %92.2 %93.0 %
Less:
Current Year Catastrophe Losses and LAE Ratio0.7 0.3 0.6 — 0.5 0.3 0.6 0.1 0.4 0.4 
Prior Years Non-catastrophe Losses and LAE Ratio(0.4)0.3 1.6 2.4 (0.6)(0.3)(0.5)(2.2)0.9 (0.9)
Prior Years Catastrophe Losses and LAE Ratio— — — — — — — — — — 
Underlying Combined Ratio91.8 %86.9 %89.8 %95.0 %94.8 %92.8 %94.6 %91.6 %90.9 %93.5 %
1 Underlying Combined Ratio is a non-GAAP measure, which is computed as the difference between three operating ratios: the combined ratio, the effect of catastrophes (excluding development of prior-year catastrophes) on the combined ratio and the effect of prior-year reserve development at the reporting date (including development on prior-year catastrophes) on the combined ratio.
16


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,
2020		Sep 30,
2020		Jun 30,
2020		Mar 31,
2020		Dec 31,
2019		Sep 30,
2019		Jun 30,
2019		Mar 31,
2019		Dec 31,
2020		Dec 31,
2019
Results of Operations   
Net Premiums Written$92.9 $94.8 $80.4 $80.9 $67.6 $65.5 $70.2 $66.9 $349.0 $270.2 
Earned Premiums$86.3 $79.2 $69.2 $69.3 $66.6 $64.2 $62.3 $59.7 $304.0 $252.8 
Net Investment Income5.5 4.3 1.7 4.0 3.8 3.9 4.3 3.1 15.5 15.1 
Other Income— — — 0.1 — 0.1 0.1 — 0.1 0.2 
Total Revenues91.8 83.5 70.9 73.4 70.4 68.2 66.7 62.8 319.6 268.1 
Incurred Losses and LAE related to:
Current Year:
Non-catastrophe Losses and LAE57.1 45.6 43.4 43.8 42.0 41.2 42.2 45.5 189.9 170.9 
Catastrophe Losses and LAE0.3 0.1 0.3 — 0.5 0.3 0.3 0.1 0.7 1.2 
Prior Years:
Non-catastrophe Losses and LAE1.4 (0.2)(1.6)(12.5)0.3 (2.3)(4.9)(3.9)(12.9)(10.8)
Catastrophe Losses and LAE0.1 — (0.1)— — — (0.1)0.1 — — 
Total Incurred Losses and LAE58.9 45.5 42.0 31.3 42.8 39.2 37.5 41.8 177.7 161.3 
Insurance Expenses16.3 13.9 14.5 12.9 12.6 10.8 12.0 10.1 57.6 45.5 
Operating Profit16.6 24.1 14.4 29.2 15.0 18.2 17.2 10.9 84.3 61.3 
Income Tax Expense(2.9)(5.0)(2.8)(6.1)(5.7)(1.7)(3.7)(2.0)(16.8)(13.1)
Total Product Line Net Operating Income$13.7 $19.1 $11.6 $23.1 $9.3 $16.5 $13.5 $8.9 $67.5 $48.2 
Ratios Based On Earned Premiums
Current Year Non-catastrophe Losses and LAE Ratio66.3 %57.6 %62.7 %63.2 %63.0 %64.2 %67.7 %76.1 %62.5 %67.6 %
Current Year Catastrophe Losses and LAE Ratio0.3 0.1 0.4 — 0.8 0.5 0.5 0.2 0.2 0.5 
Prior Years Non-catastrophe Losses and LAE Ratio1.6 (0.3)(2.3)(18.0)0.5 (3.6)(7.9)(6.5)(4.2)(4.3)
Prior Years Catastrophe Losses and LAE Ratio0.1 — (0.1)— — — (0.1)0.2 — — 
Total Incurred Loss and LAE Ratio68.3 57.4 60.7 45.2 64.3 61.1 60.2 70.0 58.5 63.8 
Insurance Expense Ratio18.9 17.6 21.0 18.6 18.9 16.8 19.3 16.9 18.9 18.0 
Combined Ratio87.2 %75.0 %81.7 %63.8 %83.2 %77.9 %79.5 %86.9 %77.4 %81.8 %
Underlying Combined Ratio 1
Current Year Non-catastrophe Losses and LAE Ratio66.3 %57.6 %62.7 %63.2 %63.0 %64.2 %67.7 %76.1 %62.5 %67.6 %
Insurance Expense Ratio18.9 17.6 21.0 18.6 18.9 16.8 19.3 16.9 18.9 18.0 
Underlying Combined Ratio85.2 %75.2 %83.7 %81.8 %81.9 %81.0 %87.0 %93.0 %81.4 %85.6 %
Non-GAAP Measure Reconciliation
Combined Ratio87.2 %75.0 %81.7 %63.8 %83.2 %77.9 %79.5 %86.9 %77.4 %81.8 %
Less:
Current Year Catastrophe Losses and LAE Ratio0.3 0.1 0.4 — 0.8 0.5 0.5 0.2 0.2 0.5 
Prior Years Non-catastrophe Losses and LAE Ratio1.6 (0.3)(2.3)(18.0)0.5 (3.6)(7.9)(6.5)(4.2)(4.3)
Prior Years Catastrophe Losses and LAE Ratio0.1 — (0.1)— — — (0.1)0.2 — — 
Underlying Combined Ratio85.2 %75.2 %83.7 %81.8 %81.9 %81.0 %87.0 %93.0 %81.4 %85.6 %
1 Underlying Combined Ratio is a non-GAAP measure, which is computed as the difference between three operating ratios: the combined ratio, the effect of catastrophes (excluding development of prior-year catastrophes) on the combined ratio and the effect of prior-year reserve development at the reporting date (including development on prior-year catastrophes) on the combined ratio.
17


Kemper Corporation
Preferred Property & Casualty Insurance Segment
Results of Operations and Selected Financial Information
(Dollars in Millions)
(Unaudited)
 Three Months EndedYear Ended
 Dec 31,
2020		Sep 30,
2020		Jun 30,
2020		Mar 31,
2020		Dec 31,
2019		Sep 30,
2019		Jun 30,
2019		Mar 31,
2019		Dec 31,
2020		Dec 31,
2019
Results of Operations   
Net Premiums Written$155.2 $172.2 $161.5 $164.1 $172.6 $189.6 $197.5 $179.6 $653.0 $739.3 
Earned Premiums$169.2 $174.5 $163.6 $180.9 $185.2 $191.0 $188.5 $185.6 $688.2 $750.3 
Net Investment Income13.4 10.3 4.3 9.7 11.5 12.0 12.3 8.3 37.7 44.1 
Other Income— — 0.1 — — — — — 0.1 — 
Total Revenues182.6 184.8 168.0 190.6 196.7 203.0 200.8 193.9 726.0 794.4 
Incurred Losses and LAE related to:
Current Year:
Non-catastrophe Losses and LAE107.1 102.8 82.5 108.5 120.2 121.7 119.1 120.8 400.9 481.8 
Catastrophe Losses and LAE(5.3)61.9 20.6 4.8 11.9 11.9 22.6 16.6 82.0 63.0 
Prior Years:
Non-catastrophe Losses and LAE9.5 6.3 8.2 (3.3)(7.1)(1.1)(4.3)(5.1)20.7 (17.6)
Catastrophe Losses and LAE0.1 0.1 0.4 (1.1)(3.1)(15.4)(0.9)1.0 (0.5)(18.4)
Total Incurred Losses and LAE111.4 171.1 111.7 108.9 121.9 117.1 136.5 133.3 503.1 508.8 
Insurance Expenses51.4 55.5 55.5 58.7 58.7 59.4 57.9 57.3 221.1 233.3 
Operating Profit (Loss)19.8 (41.8)0.8 23.0 16.1 26.5 6.4 3.3 1.8 52.3 
Income Tax Benefit (Expense)(2.9)9.1 0.1 (4.6)(3.3)(5.4)(1.2)(0.5)1.7 (10.4)
Segment Net Operating Income (Loss)$16.9 $(32.7)$0.9 $18.4 $12.8 $21.1 $5.2 $2.8 $3.5 $41.9 
Ratios Based On Earned Premiums
Current Year Non-catastrophe Losses and LAE Ratio63.2 %58.9 %50.5 %59.9 %64.9 %63.8 %63.2 %65.1 %58.3 %64.2 %
Current Year Catastrophe Losses and LAE Ratio(3.1)35.5 12.6 2.7 6.4 6.2 12.0 8.9 11.9 8.4 
Prior Years Non-catastrophe Losses and LAE Ratio5.6 3.6 5.0 (1.8)(3.8)(0.6)(2.3)(2.7)3.0 (2.3)
Prior Years Catastrophe Losses and LAE Ratio0.1 0.1 0.2 (0.6)(1.7)(8.1)(0.5)0.5 (0.1)(2.5)
Total Incurred Loss and LAE Ratio65.8 98.1 68.3 60.2 65.8 61.3 72.4 71.8 73.1 67.8 
Insurance Expense Ratio30.4 31.8 33.9 32.4 31.7 31.1 30.7 30.9 32.1 31.1 
Combined Ratio96.2 %129.9 %102.2 %92.6 %97.5 %92.4 %103.1 %102.7 %105.2 %98.9 %
Underlying Combined Ratio 1
Current Year Non-catastrophe Losses and LAE Ratio63.2 %58.9 %50.5 %59.9 %64.9 %63.8 %63.2 %65.1 %58.3 %64.2 %
Insurance Expense Ratio30.4 31.8 33.9 32.4 31.7 31.1 30.7 30.9 32.1 31.1 
Underlying Combined Ratio93.6 %90.7 %84.4 %92.3 %96.6 %94.9 %93.9 %96.0 %90.4 %95.3 %
Non-GAAP Measure Reconciliation
Combined Ratio as Reported96.2 %129.9 %102.2 %92.6 %97.5 %92.4 %103.1 %102.7 %105.2 %98.9 %
Less:
Current Year Catastrophe Losses and LAE Ratio(3.1)35.5 12.6 2.7 6.4 6.2 12.0 8.9 11.9 8.4 
Prior Years Non-catastrophe Losses and LAE Ratio5.6 3.6 5.0 (1.8)(3.8)(0.6)(2.3)(2.7)3.0 (2.3)
Prior Years Catastrophe Losses and LAE Ratio0.1 0.1 0.2 (0.6)(1.7)(8.1)(0.5)0.5 (0.1)(2.5)
Underlying Combined Ratio93.6 %90.7 %84.4 %92.3 %96.6 %94.9 %93.9 %96.0 %90.4 %95.3 %
1 Underlying Combined Ratio is a non-GAAP measure, which is computed as the difference between three operating ratios: the combined ratio, the effect of catastrophes (excluding development of prior-year catastrophes) on the combined ratio and the effect of prior-year reserve development at the reporting date (including development on prior-year catastrophes) on the combined ratio.
18


Kemper Corporation
Preferred Property & Casualty Insurance Segment
Results of Operations and Selected Financial Information (continued)
(Dollars in Millions)
(Unaudited)
Dec 31,
2020		Sep 30,
2020		Jun 30,
2020		Mar 31, 2020Dec 31, 2019Sep 30, 2019Jun 30, 2019Mar 31, 2019
Insurance Reserves:
Preferred Automobile$281.3 $265.2 $252.8 $254.8 $262.3 $267.3 $264.5 $268.0 
Homeowners104.0 137.9 99.5 90.8 95.3 108.8 131.6 133.5 
Other Personal26.3 25.5 25.7 28.8 30.9 32.2 34.0 34.3 
Insurance Reserves$411.6 $428.6 $378.0 $374.4 $388.5 $408.3 $430.1 $435.8 
Insurance Reserves:
Loss and Allocated LAE Reserves:
Case and Allocated LAE$262.2 $266.8 $230.7 $231.1 $241.3 $277.8 $278.5 $290.2 
Incurred but Not Reported122.0 134.2 119.6 115.1 118.8 100.4 120.2 113.0 
Total Loss Reserves384.2 401.0 350.3 346.2 360.1 378.2 398.7 403.2 
Unallocated LAE Reserves27.4 27.6 27.7 28.2 28.4 30.1 31.4 32.6 
Insurance Reserves$411.6 $428.6 $378.0 $374.4 $388.5 $408.3 $430.1 $435.8 

19

Kemper Corporation
Preferred Property & Casualty Insurance Segment
Preferred Personal Automobile Insurance - Results of Operations and Selected Financial Information
(Dollars in Millions)
(Unaudited)
 Three Months EndedYear Ended
 Dec 31,
2020		Sep 30,
2020		Jun 30,
2020		Mar 31,
2020		Dec 31,
2019		Sep 30,
2019		Jun 30,
2019		Mar 31,
2019		Dec 31,
2020		Dec 31,
2019
Results of Operations   
Net Premiums Written$98.8 $107.2 $95.6 $105.9 $111.5 $117.5 $123.4 $116.5 $407.5 $468.9 
Earned Premiums$107.1 $110.6 $99.1 $114.9 $117.2 $119.7 $117.9 $115.4 $431.7 $470.2 
Net Investment Income7.9 6.1 2.5 5.8 5.4 5.6 5.8 3.9 22.3 20.7 
Other Income— — 0.1 — — — — — 0.1 — 
Total Revenues115.0 116.7 101.7 120.7 122.6 125.3 123.7 119.3 454.1 490.9 
Incurred Losses and LAE related to:
Current Year:
Non-catastrophe Losses and LAE78.0 72.2 53.8 75.9 86.2 83.2 82.9 80.2 279.9 332.5 
Catastrophe Losses and LAE0.4 1.8 2.0 0.2 1.5 2.1 1.7 2.5 4.4 7.8 
Prior Years:
Non-catastrophe Losses and LAE9.9 5.9 9.7 2.2 (2.8)(0.5)(3.7)(1.2)27.7 (8.2)
Catastrophe Losses and LAE(0.4)(0.2)(0.3)(0.1)0.2 (0.1)— (0.1)(1.0)— 
Total Incurred Losses and LAE87.9 79.7 65.2 78.2 85.1 84.7 80.9 81.4 311.0 332.1 
Insurance Expenses32.3 34.7 34.0 36.1 36.3 36.8 35.5 35.0 137.1 143.6 
Operating Profit(5.2)2.3 2.5 6.4 1.2 3.8 7.3 2.9 6.0 15.2 
Income Tax Expense1.9 (0.3)(0.4)(1.2)(0.2)(0.7)(1.5)(0.5)— (2.9)
Total Product Line Net Operating Income (Loss)$(3.3)$2.0 $2.1 $5.2 $1.0 $3.1 $5.8 $2.4 $6.0 $12.3 
Ratios Based On Earned Premiums
Current Year Non-catastrophe Losses and LAE Ratio72.9 %65.4 %54.3 %66.1 %73.5 %69.5 %70.3 %69.4 %64.8 %70.6 %
Current Year Catastrophe Losses and LAE Ratio0.4 1.6 2.0 0.2 1.3 1.8 1.4 2.2 1.0 1.7 
Prior Years Non-catastrophe Losses and LAE Ratio9.2 5.3 9.8 1.9 (2.4)(0.4)(3.1)(1.0)6.4 (1.7)
Prior Years Catastrophe Losses and LAE Ratio(0.4)(0.2)(0.3)(0.1)0.2 (0.1)— (0.1)(0.2)— 
Total Incurred Loss and LAE Ratio82.1 72.1 65.8 68.1 72.6 70.8 68.6 70.5 72.0 70.6 
Insurance Expense Ratio30.2 31.4 34.3 31.4 31.0 30.7 30.1 30.3 31.8 30.5 
Combined Ratio112.3 %103.5 %100.1 %99.5 %103.6 %101.5 %98.7 %100.8 %103.8 %101.1 %
Underlying Combined Ratio 1
Current Year Non-catastrophe Losses and LAE Ratio72.9 %65.4 %54.3 %66.1 %73.5 %69.5 %70.3 %69.4 %64.8 %70.6 %
Insurance Expense Ratio30.2 31.4 34.3 31.4 31.0 30.7 30.1 30.3 31.8 30.5 
Underlying Combined Ratio103.1 %96.8 %88.6 %97.5 %104.5 %100.2 %100.4 %99.7 %96.6 %101.1 %
Non-GAAP Measure Reconciliation
Combined Ratio112.3 %103.5 %100.1 %99.5 %103.6 %101.5 %98.7 %100.8 %103.8 %101.1 %
Less:
Current Year Catastrophe Losses and LAE Ratio0.4 1.6 2.0 0.2 1.3 1.8 1.4 2.2 1.0 1.7 
Prior Years Non-catastrophe Losses and LAE Ratio9.2 5.3 9.8 1.9 (2.4)(0.4)(3.1)(1.0)6.4 (1.7)
Prior Years Catastrophe Losses and LAE Ratio(0.4)(0.2)(0.3)(0.1)0.2 (0.1)— (0.1)(0.2)— 
Underlying Combined Ratio103.1 %96.8 %88.6 %97.5 %104.5 %100.2 %100.4 %99.7 %96.6 %101.1 %
1 Underlying Combined Ratio is a non-GAAP measure, which is computed as the difference between three operating ratios: the combined ratio, the effect of catastrophes (excluding development of prior-year catastrophes) on the combined ratio and the effect of prior-year reserve development at the reporting date (including development on prior-year catastrophes) on the combined ratio.
20

Kemper Corporation
Preferred Property & Casualty Insurance Segment
Homeowners and Other Personal Insurance - Results of Operations and Selected Financial Information
(Dollars in Millions)
(Unaudited)
 Three Months EndedYear Ended
 Dec 31,
2020		Sep 30,
2020		Jun 30,
2020		Mar 31,
2020		Dec 31,
2019		Sep 30,
2019		Jun 30,
2019		Mar 31,
2019		Dec 31,
2020		Dec 31,
2019
Results of Operations   
Net Premiums Written$56.4 $65.0 $65.9 $58.2 $61.1 $72.1 $74.1 $63.1 $245.5 $270.4 
Earned Premiums$62.1 $63.9 $64.5 $66.0 $68.0 $71.3 $70.6 $70.2 $256.5 $280.1 
Net Investment Income5.5 4.2 1.8 3.9 6.1 6.4 6.5 4.4 15.4 23.4 
Total Revenues67.6 68.1 66.3 69.9 74.1 77.7 77.1 74.6 271.9 303.5 
Incurred Losses and LAE related to:
Current Year:
Non-catastrophe Losses and LAE29.1 30.6 28.7 32.6 34.0 38.5 36.2 40.6 121.0 149.3 
Catastrophe Losses and LAE(5.7)60.1 18.6 4.6 10.4 9.8 20.9 14.1 77.6 55.2 
Prior Years:
Non-catastrophe Losses and LAE(0.4)0.4 (1.5)(5.5)(4.3)(0.6)(0.6)(3.9)(7.0)(9.4)
Catastrophe Losses and LAE0.5 0.3 0.7 (1.0)(3.3)(15.3)(0.9)1.1 0.5 (18.4)
Total Incurred Losses and LAE23.5 91.4 46.5 30.7 36.8 32.4 55.6 51.9 192.1 176.7 
Insurance Expenses19.1 20.8 21.5 22.6 22.4 22.6 22.4 22.3 84.0 89.7 
Operating Profit (Loss)25.0 (44.1)(1.7)16.6 14.9 22.7 (0.9)0.4 (4.2)37.1 
Income Tax Benefit (Expense)(4.8)9.4 0.5 (3.4)(3.1)(4.7)0.3 — 1.7 (7.5)
Total Product Line Net Operating Income (Loss)$20.2 $(34.7)$(1.2)$13.2 $11.8 $18.0 $(0.6)$0.4 $(2.5)$29.6 
Ratios Based On Earned Premiums
Current Year Non-catastrophe Losses and LAE Ratio46.8 %47.8 %44.5 %49.3 %50.0 %54.0 %51.3 %57.8 %47.1 %53.4 %
Current Year Catastrophe Losses and LAE Ratio(9.2)94.1 28.8 7.0 15.3 13.7 29.6 20.1 30.3 19.7 
Prior Years Non-catastrophe Losses and LAE Ratio(0.6)0.6 (2.3)(8.3)(6.3)(0.8)(0.8)(5.6)(2.7)(3.4)
Prior Years Catastrophe Losses and LAE Ratio0.8 0.5 1.1 (1.5)(4.9)(21.5)(1.3)1.6 0.2 (6.6)
Total Incurred Loss and LAE Ratio37.8 143.0 72.1 46.5 54.1 45.4 78.8 73.9 74.9 63.1 
Insurance Expense Ratio30.8 32.6 33.3 34.2 32.9 31.7 31.7 31.8 32.7 32.0 
Combined Ratio68.6 %175.6 %105.4 %80.7 %87.0 %77.1 %110.5 %105.7 %107.6 %95.1 %
Underlying Combined Ratio 1
Current Year Non-catastrophe Losses and LAE Ratio46.8 %47.8 %44.5 %49.3 %50.0 %54.0 %51.3 %57.8 %47.1 %53.4 %
Insurance Expense Ratio30.8 32.6 33.3 34.2 32.9 31.7 31.7 31.8 32.7 32.0 
Underlying Combined Ratio77.6 %80.4 %77.8 %83.5 %82.9 %85.7 %83.0 %89.6 %79.8 %85.4 %
Non-GAAP Measure Reconciliation
Combined Ratio68.6 %175.6 %105.4 %80.7 %87.0 %77.1 %110.5 %105.7 %107.6 %95.1 %
Less:
Current Year Catastrophe Losses and LAE Ratio(9.2)94.1 28.8 7.0 15.3 13.7 29.6 20.1 30.3 19.7 
Prior Years Non-catastrophe Losses and LAE Ratio(0.6)0.6 (2.3)(8.3)(6.3)(0.8)(0.8)(5.6)(2.7)(3.4)
Prior Years Catastrophe Losses and LAE Ratio0.8 0.5 1.1 (1.5)(4.9)(21.5)(1.3)1.6 0.2 (6.6)
Underlying Combined Ratio77.6 %80.4 %77.8 %83.5 %82.9 %85.7 %83.0 %89.6 %79.8 %85.4 %
1Underlying Combined Ratio is a non-GAAP measure, which is computed as the difference between three operating ratios: the combined ratio, the effect of catastrophes (excluding development of prior-year catastrophes) on the combined ratio and the effect of prior-year reserve development at the reporting date (including development on prior-year catastrophes) on the combined ratio.
21


Kemper Corporation
Preferred Property & Casualty Insurance Segment
Homeowners Insurance - Results of Operations and Selected Financial Information
(Dollars in Millions)
(Unaudited)
 Three Months EndedYear Ended
 Dec 31,
2020		Sep 30,
2020		Jun 30,
2020		Mar 31,
2020		Dec 31,
2019		Sep 30,
2019		Jun 30,
2019		Mar 31,
2019		Dec 31,
2020		Dec 31,
2019
Results of Operations   
Net Premiums Written$48.3 $55.7 $57.2 $49.9 $52.5 $62.3 $64.2 $54.1 $211.1 $233.1 
Earned Premiums$53.3 $55.0 $55.6 $56.8 $58.7 $61.5 $60.8 $60.3 $220.7 $241.3 
Net Investment Income5.0 3.8 1.6 3.6 5.2 5.5 5.6 3.8 14.0 20.1 
Total Revenues58.3 58.8 57.2 60.4 63.9 67.0 66.4 64.1 234.7 261.4 
Incurred Losses and LAE related to:
Current Year:
Non-catastrophe Losses and LAE26.5 28.1 25.4 28.7 30.0 34.2 31.6 35.8 108.7 131.6 
Catastrophe Losses and LAE(10.1)58.6 18.2 4.5 10.3 9.3 20.6 13.8 71.2 54.0 
Prior Years:
Non-catastrophe Losses and LAE0.3 2.0 (0.8)(4.3)(2.7)0.2 0.9 (1.1)(2.8)(2.7)
Catastrophe Losses and LAE0.6 0.2 0.6 (0.7)(3.4)(13.6)(1.0)1.0 0.7 (17.0)
Total Incurred Losses and LAE17.3 88.9 43.4 28.2 34.2 30.1 52.1 49.5 177.8 165.9 
Insurance Expenses16.6 18.2 18.6 19.5 19.6 19.8 19.7 19.6 72.9 78.7 
Operating Profit (Loss)24.4 (48.3)(4.8)12.7 10.1 17.1 (5.4)(5.0)(16.0)16.8 
Income Tax Benefit (Expense)(4.7)10.3 1.1 (2.6)(2.1)(3.5)1.2 1.1 4.1 (3.3)
Total Product Line Net Operating Income (Loss)$19.7 $(38.0)$(3.7)$10.1 $8.0 $13.6 $(4.2)$(3.9)$(11.9)$13.5 
Ratios Based On Earned Premiums
Current Year Non-catastrophe Losses and LAE Ratio49.7 %51.1 %45.7 %50.5 %51.2 %55.6 %51.9 %59.3 %49.3 %54.5 %
Current Year Catastrophe Losses and LAE Ratio(18.9)106.5 32.7 7.9 17.5 15.1 33.9 22.9 32.3 22.4 
Prior Years Non-catastrophe Losses and LAE Ratio0.6 3.6 (1.4)(7.6)(4.6)0.3 1.5 (1.8)(1.3)(1.1)
Prior Years Catastrophe Losses and LAE Ratio1.1 0.4 1.1 (1.2)(5.8)(22.1)(1.6)1.7 0.3 (7.0)
Total Incurred Loss and LAE Ratio32.5 161.6 78.1 49.6 58.3 48.9 85.7 82.1 80.6 68.8 
Insurance Expense Ratio31.1 33.1 33.5 34.3 33.4 32.2 32.4 32.5 33.0 32.6 
Combined Ratio63.6 %194.7 %111.6 %83.9 %91.7 %81.1 %118.1 %114.6 %113.6 %101.4 %
Underlying Combined Ratio 1
Current Year Non-catastrophe Losses and LAE Ratio49.7 %51.1 %45.7 %50.5 %51.2 %55.6 %51.9 %59.3 %49.3 %54.5 %
Insurance Expense Ratio31.1 33.1 33.5 34.3 33.4 32.2 32.4 32.5 33.0 32.6 
Underlying Combined Ratio80.8 %84.2 %79.2 %84.8 %84.6 %87.8 %84.3 %91.8 %82.3 %87.1 %
Non-GAAP Measure Reconciliation
Combined Ratio63.6 %194.7 %111.6 %83.9 %91.7 %81.1 %118.1 %114.6 %113.6 %101.4 %
Less:
Current Year Catastrophe Losses and LAE Ratio(18.9)106.5 32.7 7.9 17.5 15.1 33.9 22.9 32.3 22.4 
Prior Years Non-catastrophe Losses and LAE Ratio0.6 3.6 (1.4)(7.6)(4.6)0.3 1.5 (1.8)(1.3)(1.1)
Prior Years Catastrophe Losses and LAE Ratio1.1 0.4 1.1 (1.2)(5.8)(22.1)(1.6)1.7 0.3 (7.0)
Underlying Combined Ratio80.8 %84.2 %79.2 %84.8 %84.6 %87.8 %84.3 %91.8 %82.3 %87.1 %
1 Underlying Combined Ratio is a non-GAAP measure, which is computed as the difference between three operating ratios: the combined ratio, the effect of catastrophes (excluding development of prior-year catastrophes) on the combined ratio and the effect of prior-year reserve development at the reporting date (including development on prior-year catastrophes) on the combined ratio.
22

Kemper Corporation
Preferred Property & Casualty Insurance Segment
Other Personal Insurance - Results of Operations and Selected Financial Information
(Dollars in Millions)
(Unaudited)
 Three Months EndedYear Ended
 Dec 31,
2020		Sep 30,
2020		Jun 30,
2020		Mar 31,
2020		Dec 31,
2019		Sep 30,
2019		Jun 30,
2019		Mar 31,
2019		Dec 31,
2020		Dec 31,
2019
Results of Operations   
Net Premiums Written$8.1 $9.3 $8.7 $8.3 $8.6 $9.8 $9.9 $9.0 $34.4 $37.3 
Earned Premiums$8.8 $8.9 $8.9 $9.2 $9.3 $9.8 $9.8 $9.9 $35.8 $38.8 
Net Investment Income0.5 0.4 0.2 0.3 0.9 0.9 0.9 0.6 1.4 3.3 
Total Revenues9.3 9.3 9.1 9.5 10.2 10.7 10.7 10.5 37.2 42.1 
Incurred Losses and LAE related to:
Current Year:
Non-catastrophe Losses and LAE2.6 2.5 3.3 3.9 4.0 4.3 4.6 4.8 12.3 17.7 
Catastrophe Losses and LAE4.4 1.5 0.4 0.1 0.1 0.5 0.3 0.3 6.4 1.2 
Prior Years:
Non-catastrophe Losses and LAE(0.7)(1.6)(0.7)(1.2)(1.6)(0.8)(1.5)(2.8)(4.2)(6.7)
Catastrophe Losses and LAE(0.1)0.1 0.1 (0.3)0.1 (1.7)0.1 0.1 (0.2)(1.4)
Total Incurred Losses and LAE6.2 2.5 3.1 2.5 2.6 2.3 3.5 2.4 14.3 10.8 
Insurance Expenses2.5 2.6 2.9 3.1 2.8 2.8 2.7 2.7 11.1 11.0 
Operating Profit 0.6 4.2 3.1 3.9 4.8 5.6 4.5 5.4 11.8 20.3 
Income Tax Expense(0.1)(0.9)(0.6)(0.8)(1.0)(1.2)(0.9)(1.1)(2.4)(4.2)
Total Product Line Net Operating Income$0.5 $3.3 $2.5 $3.1 $3.8 $4.4 $3.6 $4.3 $9.4 $16.1 
Ratios Based On Earned Premiums
Current Year Non-catastrophe Losses and LAE Ratio29.6 %28.1 %37.1 %42.4 %43.0 %43.9 %46.9 %48.5 %34.3 %45.6 %
Current Year Catastrophe Losses and LAE Ratio50.0 16.9 4.5 1.1 1.1 5.1 3.1 3.0 17.9 3.1 
Prior Years Non-catastrophe Losses and LAE Ratio(8.0)(18.0)(7.9)(13.0)(17.2)(8.2)(15.3)(28.3)(11.7)(17.3)
Prior Years Catastrophe Losses and LAE Ratio(1.1)1.1 1.1 (3.3)1.1 (17.3)1.0 1.0 (0.6)(3.6)
Total Incurred Loss and LAE Ratio70.5 28.1 34.8 27.2 28.0 23.5 35.7 24.2 39.9 27.8 
Insurance Expense Ratio28.4 29.2 32.6 33.7 30.1 28.6 27.6 27.3 31.0 28.4 
Combined Ratio98.9 %57.3 %67.4 %60.9 %58.1 %52.1 %63.3 %51.5 %70.9 %56.2 %
Underlying Combined Ratio 1
Current Year Non-catastrophe Losses and LAE Ratio29.6 %28.1 %37.1 %42.4 %43.0 %43.9 %46.9 %48.5 %34.3 %45.6 %
Insurance Expense Ratio28.4 29.2 32.6 33.7 30.1 28.6 27.6 27.3 31.0 28.4 
Underlying Combined Ratio58.0 %57.3 %69.7 %76.1 %73.1 %72.5 %74.5 %75.8 %65.3 %74.0 %
Non-GAAP Measure Reconciliation
Combined Ratio98.9 %57.3 %67.4 %60.9 %58.1 %52.1 %63.3 %51.5 %70.9 %56.2 %
Less:
Current Year Catastrophe Losses and LAE Ratio50.0 16.9 4.5 1.1 1.1 5.1 3.1 3.0 17.9 3.1 
Prior Years Non-catastrophe Losses and LAE Ratio(8.0)(18.0)(7.9)(13.0)(17.2)(8.2)(15.3)(28.3)(11.7)(17.3)
Prior Years Catastrophe Losses and LAE Ratio(1.1)1.1 1.1 (3.3)1.1 (17.3)1.0 1.0 (0.6)(3.6)
Underlying Combined Ratio58.0 %57.3 %69.7 %76.1 %73.1 %72.5 %74.5 %75.8 %65.3 %74.0 %
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.
23


Kemper Corporation
Life & Health Insurance Segment
Results of Operations and Selected Financial Information
(Dollars in Millions)
(Unaudited)
 Three Months EndedYear Ended
 Dec 31,
2020		Sep 30,
2020		Jun 30,
2020		Mar 31,
2020		Dec 31,
2019		Sep 30,
2019		Jun 30,
2019		Mar 31,
2019		Dec 31,
2020		Dec 31,
2019
Results of Operations  
Earned Premiums$162.4 $160.6 $162.7 $163.0 $160.9 $160.8 $162.1 $159.9 $648.7 $643.7 
Net Investment Income52.8 50.7 44.3 51.0 52.0 49.7 53.0 51.7 198.8 206.4 
Other Income— — 0.5 0.1 2.9 2.9 1.6 1.1 0.6 8.5 
Total Revenues215.2 211.3 207.5 214.1 215.8 213.4 216.7 212.7 848.1 858.6 
Policyholders’ Benefits and Incurred Losses and LAE121.8 113.6 105.9 100.7 95.0 88.8 113.5 105.4 442.0 402.7 
Insurance Expenses83.8 82.5 81.7 86.9 85.3 83.6 87.1 78.0 334.9 334.0 
Operating Profit9.6 15.2 19.9 26.5 35.5 41.0 16.1 29.3 71.2 121.9 
Income Tax Expense(0.2)(3.0)(3.8)(4.2)(6.6)(7.6)(2.8)(6.2)(11.2)(23.2)
Segment Net Operating Income$9.4 $12.2 $16.1 $22.3 $28.9 $33.4 $13.3 $23.1 $60.0 $98.7 
 

Dec 31, 2020Sep 30, 2020Jun 30, 2020Mar 31, 2020Dec 31, 2019Sep 30, 2019Jun 30, 2019Mar 31, 2019
Insurance Reserves:
Future Policyholder Benefits$3,440.5 $3,426.4 $3,407.0 $3,397.1 $3,385.3 $3,374.6 $3,362.6 $3,346.1 
Incurred Losses and LAE Reserves:
Life61.1 59.0 61.6 75.5 89.2 97.0 121.4 127.0 
Accident and Health25.9 26.1 29.1 28.2 27.5 28.1 30.2 28.6 
Property4.6 5.1 3.8 3.1 3.3 3.5 4.2 3.6 
Total Incurred Losses and LAE Reserves91.6 90.2 94.5 106.8 120.0 128.6 155.8 159.2 
Insurance Reserves$3,532.1 $3,516.6 $3,501.5 $3,503.9 $3,505.3 $3,503.2 $3,518.4 $3,505.3 

 

24


Kemper Corporation
Life & Health Insurance Segment
Life Insurance - Results of Operations and Selected Financial Information
(Dollars in Millions)
(Unaudited)
 Three Months EndedYear Ended
 Dec 31,
2020		Sep 30, 2020Jun 30, 2020Mar 31, 2020Dec 31, 2019Sep 30, 2019Jun 30,
2019		Mar 31,
2019		Dec 31,
2020		Dec 31,
2019
Results of Operations  
Earned Premiums$96.5 $96.3 $95.7 $97.2 $95.6 $96.2 $97.0 $95.8 $385.7 $384.6 
Net Investment Income52.3 47.5 44.8 48.7 50.1 47.8 51.0 49.9 193.3 198.8 
Other Income(0.1)— 0.1 — 2.7 2.8 1.6 1.0 — 8.1 
Total Revenues148.7 143.8 140.6 145.9 148.4 146.8 149.6 146.7 579.0 591.5 
Policyholders’ Benefits and Incurred Losses and LAE89.4 84.0 76.7 68.1 65.4 56.0 75.9 72.8 318.2 270.1 
Insurance Expenses52.9 54.7 50.9 60.3 55.4 53.3 56.7 49.9 218.8 215.3 
Operating Profit 6.4 5.1 13.0 17.5 27.6 37.5 17.0 24.0 42.0 106.1 
Income Tax Expense0.3 (0.8)(2.4)(2.3)(4.9)(7.0)(3.0)(5.1)(5.2)(20.0)
Total Product Line Operating Income$6.7 $4.3 $10.6 $15.2 $22.7 $30.5 $14.0 $18.9 $36.8 $86.1 


Kemper Corporation
Life & Health Insurance Segment
Accident & Health Insurance - Results of Operations and Selected Financial Information
(Dollars in Millions)
(Unaudited)
 Three Months EndedYear Ended
 Dec 31,
2020		Sep 30, 2020Jun 30, 2020Mar 31, 2020Dec 31, 2019Sep 30, 2019Jun 30,
2019		Mar 31,
2019		Dec 31,
2020		Dec 31,
2019
Results of Operations  
Earned Premiums$50.2 $48.9 $50.8 $49.4 $48.5 $47.6 $47.9 $46.9 $199.3 $190.9 
Net Investment Income0.3 3.1 (0.4)2.0 1.5 1.5 1.5 1.5 5.0 6.0 
Other Income0.1 — 0.4 0.1 0.2 0.1 — 0.1 0.6 0.4 
Total Revenues50.6 52.0 50.8 51.5 50.2 49.2 49.4 48.5 204.9 197.3 
Policyholders’ Benefits and Incurred Losses and LAE24.5 20.7 22.0 28.1 25.3 27.6 30.6 26.3 95.3 109.8 
Insurance Expenses25.1 22.1 24.6 20.1 22.8 22.7 22.4 20.8 91.9 88.7 
Operating Profit (Loss)1.0 9.2 4.2 3.3 2.1 (1.1)(3.6)1.4 17.7 (1.2)
Income Tax Benefit (Expense)— (2.0)(0.9)(0.7)(0.5)0.3 0.8 (0.3)(3.6)0.3 
Total Product Line Net Operating Income (Loss)$1.0 $7.2 $3.3 $2.6 $1.6 $(0.8)$(2.8)$1.1 $14.1 $(0.9)
25


Kemper Corporation
Life & Health Insurance Segment
Property Insurance - Results of Operations and Selected Financial Information
(Dollars in Millions)
(Unaudited)
 Three Months EndedYear Ended
 Dec 31,
2020		Sep 30, 2020Jun 30, 2020Mar 31, 2020Dec 31, 2019Sep 30, 2019Jun 30,
2019		Mar 31,
2019		Dec 31,
2020		Dec 31,
2019
Results of Operations   
Earned Premiums$15.7 $15.4 $16.2 $16.4 $16.8 $17.0 $17.2 $17.2 $63.7 $68.2 
Net Investment Income0.2 0.1 (0.1)0.3 0.4 0.4 0.5 0.3 0.5 1.6 
Total Revenues15.9 15.5 16.1 16.7 17.2 17.4 17.7 17.5 64.2 69.8 
Incurred Losses and LAE related to:
Current Year:
Non-catastrophe Losses and LAE2.5 5.2 3.5 4.0 3.8 4.5 4.7 5.1 15.2 18.1 
Catastrophe Losses and LAE5.3 3.1 3.2 0.8 0.5 0.5 1.8 0.3 12.4 3.1 
Prior Years:
Non-catastrophe Losses and LAE0.1 0.4 0.3 (0.4)(0.1)0.1 0.2 0.6 0.4 0.8 
Catastrophe Losses and LAE— 0.2 0.2 0.1 0.1 0.1 0.3 0.3 0.5 0.8 
Total Incurred Losses and LAE7.9 8.9 7.2 4.5 4.3 5.2 7.0 6.3 28.5 22.8 
Insurance Expenses5.8 5.7 6.2 6.5 7.1 7.6 8.0 7.3 24.2 30.0 
Operating Profit 2.2 0.9 2.7 5.7 5.8 4.6 2.7 3.9 11.5 17.0 
Income Tax Expense(0.5)(0.2)(0.5)(1.2)(1.2)(0.9)(0.6)(0.8)(2.4)(3.5)
Total Product Line Net Operating Income $1.7 $0.7 $2.2 $4.5 $4.6 $3.7 $2.1 $3.1 $9.1 $13.5 
Ratios Based On Earned Premiums
Current Year Non-catastrophe Losses and LAE Ratio15.9 %33.8 %21.5 %24.3 %22.6 %26.5 %27.3 %29.7 %23.8 %26.5 %
Current Year Catastrophe Losses and LAE Ratio33.8 20.1 19.8 4.9 3.0 2.9 10.5 1.7 19.5 4.5 
Prior Years Non-catastrophe Losses and LAE Ratio0.6 2.6 1.9 (2.4)(0.6)0.6 1.2 3.5 0.6 1.2 
Prior Years Catastrophe Losses and LAE Ratio— 1.3 1.2 0.6 0.6 0.6 1.7 1.7 0.8 1.2 
Total Incurred Loss and LAE Ratio50.3 57.8 44.4 27.4 25.6 30.6 40.7 36.6 44.7 33.4 
Insurance Expense Ratio36.9 37.0 38.3 39.6 42.3 44.7 46.5 42.4 38.0 44.0 
Combined Ratio87.2 %94.8 %82.7 %67.0 %67.9 %75.3 %87.2 %79.0 %82.7 %77.4 %
Underlying Combined Ratio 1
Current Year Non-catastrophe Losses and LAE Ratio15.9 %33.8 %21.5 %24.3 %22.6 %26.5 %27.3 %29.7 %23.8 %26.5 %
Insurance Expense Ratio36.9 37.0 38.3 39.6 42.3 44.7 46.5 42.4 38.0 44.0 
Underlying Combined Ratio52.8 %70.8 %59.8 %63.9 %64.9 %71.2 %73.8 %72.1 %61.8 %70.5 %
Non-GAAP Measure Reconciliation
Combined Ratio87.2 %94.8 %82.7 %67.0 %67.9 %75.3 %87.2 %79.0 %82.7 %77.4 %
Less:
Current Year Catastrophe Losses and LAE Ratio33.8 20.1 19.8 4.9 3.0 2.9 10.5 1.7 19.5 4.5 
Prior Years Non-catastrophe Losses and LAE Ratio0.6 2.6 1.9 (2.4)(0.6)0.6 1.2 3.5 0.6 1.2 
Prior Years Catastrophe Losses and LAE Ratio— 1.3 1.2 0.6 0.6 0.6 1.7 1.7 0.8 1.2 
Underlying Combined Ratio52.8 %70.8 %59.8 %63.9 %64.9 %71.2 %73.8 %72.1 %61.8 %70.5 %
1 Underlying Combined Ratio is a non-GAAP measure, which is computed as the difference between three operating ratios: the combined ratio, the effect of catastrophes (excluding development of prior-year catastrophes) on the combined ratio and the effect of prior-year reserve development at the reporting date (including development on prior-year catastrophes) on the combined ratio.
26


Kemper Corporation
Expenses
(Dollars in Millions)
 Three Months EndedYear Ended
 Dec 31,
2020		Sep 30,
2020		Jun 30, 2020Mar 31, 2020Dec 31, 2019Sep 30, 2019Jun 30,
2019		Mar 31,
2019		Dec 31,
2020		Dec 31,
2019
Insurance Expenses: 
Commissions$183.3 $195.5 $178.2 $188.8 $172.7 $178.3 $183.8 $174.0 $745.8 $708.8 
General Expenses83.1 74.6 79.2 70.5 70.4 69.8 74.9 62.9 307.4 278.0 
Premium Taxes23.0 23.3 23.1 24.8 22.0 21.8 25.0 24.7 94.2 93.5 
Total Costs Incurred289.4 293.4 280.5 284.1 265.1 269.9 283.7 261.6 1,147.4 1,080.3 
Net Policy Acquisition Costs Deferred(11.1)(17.4)(9.3)(13.8)(1.0)(15.2)(21.7)(29.0)(51.6)(66.9)
Amortization of Valuation of Business Acquired ("VOBA")1.0 0.9 1.5 1.3 1.3 1.3 1.5 2.2 4.7 6.3 
Insurance Expenses279.3 276.9 272.7 271.6 265.4 256.0 263.5 234.8 1,100.5 1,019.7 
Loss from Early Extinguishment of Debt— — — — — 5.8 — — — 5.8 
Interest and Other Expenses:
Interest Expense11.3 8.3 8.9 7.5 10.0 9.2 11.8 11.5 36.0 42.5 
Other Expenses:
Acquisition Related Transaction, Integration and Other Costs20.0 14.4 17.1 11.8 6.2 5.4 1.2 5.6 63.3 18.4 
Pension Settlement Expense64.1 — — — — — — — 64.1 — 
Other33.4 24.5 25.0 25.2 30.3 23.3 25.0 24.3 108.1 102.9 
Other Expenses117.5 38.9 42.1 37.0 36.5 28.7 26.2 29.9 235.5 121.3 
Interest and Other Expenses128.8 47.2 51.0 44.5 46.5 37.9 38.0 41.4 271.5 163.8 
Total Expenses$408.1 $324.1 $323.7 $316.1 $311.9 $299.7 $301.5 $276.2 $1,372.0 $1,189.3 

27


Kemper Corporation
Details of Investment Performance
(Dollars in Millions)
 Three Months EndedYear Ended
 Dec 31,
2020		Sep 30,
2020		Jun 30, 2020Mar 31, 2020Dec 31, 2019Sep 30, 2019Jun 30,
2019		Mar 31,
2019		Dec 31,
2020		Dec 31,
2019
Net Investment Income  
Interest on Fixed Income Securities$71.8 $72.7 $74.3 $71.0 $73.9 $73.5 $75.6 $76.4 $289.8 $299.4 
Dividends on Equity Securities Excluding Alternative Investments4.7 2.8 3.6 4.3 8.3 5.2 6.9 2.5 15.4 22.9 
Alternative Investments:
Equity Method Limited Liability Investments7.6 8.2 (12.7)1.8 0.4 1.6 2.6 (3.6)4.9 1.0 
Limited Liability Investments Included in Equity Securities14.8 2.4 1.1 3.8 5.1 5.2 5.1 2.6 22.1 18.0 
Total Alternative Investments22.4 10.6 (11.6)5.6 5.5 6.8 7.7 (1.0)27.0 19.0 
Short-term Investments1.3 2.3 0.3 1.6 1.3 2.5 2.6 1.8 5.5 8.2 
Loans to Policyholders5.5 5.5 5.5 5.6 5.7 5.9 5.7 5.3 22.1 22.6 
Real Estate2.5 2.3 2.3 2.5 2.7 2.4 2.2 2.5 9.6 9.8 
Other3.9 2.7 2.4 4.2 0.6 0.6 0.3 — 13.2 1.5 
Total Investment Income112.1 98.9 76.8 94.8 98.0 96.9 101.0 87.5 382.6 383.4 
Investment Expenses:
Real Estate2.3 1.2 2.7 2.6 2.4 2.5 2.3 2.4 8.8 9.6 
Other Investment Expenses7.1 5.6 6.3 6.6 1.7 2.7 2.7 2.4 25.6 9.5 
Total Investment Expenses9.4 6.8 9.0 9.2 4.1 5.2 5.0 4.8 34.4 19.1 
Net Investment Income$102.7 $92.1 $67.8 $85.6 $93.9 $91.7 $96.0 $82.7 $348.2 $364.3 
Net Realized Gains (Losses) on Sales of Investments
Fixed Maturities:
Gains on Sales$1.9 $11.9 $10.9 $15.9 $1.4 $1.9 $22.7 $15.1 $40.6 $41.1 
Losses on Sales(4.4)(1.9)(0.5)(1.1)— (0.3)(1.9)(2.6)(7.9)(4.8)
Equity Securities:
Gains on Sales4.4 0.1 0.1 1.3 1.3 0.2 0.7 3.6 5.9 5.8 
Losses on Sales(1.7)— — (0.2)0.1 (0.1)(0.2)— (1.9)(0.2)
Equity Method Limited Liability Investments:
Losses on Sales(0.3)(0.1)— — — — — — (0.4)— 
Real Estate:
Gains on Sales— — 1.2 0.6 — — — — 1.8 — 
Net Realized Gains on Sales of Investments$(0.1)$10.0 $11.7 $16.5 $2.8 $1.7 $21.3 $16.1 $38.1 $41.9 
Net Impairment Losses Recognized in Earnings
Fixed Maturities$1.3 $(1.0)$(7.0)$(10.0)$(1.7)$(1.7)$(6.3)$(3.6)$(16.7)$(13.3)
Equity Securities(0.8)— — (2.0)— (0.1)(0.4)— (2.8)(0.5)
Net Impairment Losses Recognized in Earnings$0.5 $(1.0)$(7.0)$(12.0)$(1.7)$(1.8)$(6.7)$(3.6)$(19.5)$(13.8)
 
28


Kemper Corporation
Details of Invested Assets
(Dollars in Millions)
(Unaudited)
 Dec 31, 2020Dec 31, 2019Dec 31, 2018
 Carrying
Value
Percent
of Total1
Carrying
Value
Percent
of Total1
Carrying
Value
Percent
of Total1
Fixed Maturities Reported at Fair Value:
U.S. Government and Government Agencies and Authorities
$585.3 5.6 %$815.9 8.8 %$865.7 10.6 %
States and Political Subdivisions
1,589.5 15.2 1,515.8 16.4 1,619.1 19.9 
Foreign Governments
5.2 — 16.8 0.2 5.9 0.1 
Corporate Securities:
Bonds and Notes
4,425.4 42.5 3,859.7 41.7 3,393.8 41.8 
Redeemable Preferred Stocks
7.5 0.1 6.7 0.1 — — 
Collateralized Loan Obligations767.7 7.4 618.2 6.7 524.0 6.4 
Other Mortgage- and Asset-backed
225.3 2.2 89.0 1.0 15.7 0.2 
Total Fixed Maturities Reported at Fair Value
7,605.9 73.0 6,922.1 74.7 6,424.2 79.0 
Equity Securities Reported at Fair Value:
Preferred Stocks
59.1 0.6 59.2 0.6 54.2 0.7 
Common Stocks
10.8 0.1 13.2 0.1 10.9 0.1 
Other Equity Interests:
Exchange Traded Funds
496.6 4.8 586.8 6.3 427.3 5.3 
Limited Liability Companies and Limited Partnerships
292.0 2.8 248.1 2.7 192.0 2.4 
Total Equity Securities Reported at Fair Value
858.5 8.2 907.3 9.8 684.4 8.5 
Equity Securities Reported at Modified Cost:
Preferred Stocks
8.1 0.1 9.1 0.1 9.2 0.1 
Common Stocks
16.3 0.2 12.3 0.1 8.8 0.1 
Limited Liability Companies and Limited Partnerships
15.7 0.2 20.5 0.2 23.5 0.3 
Total Equity Securities Reported at Modified Cost
40.1 0.5 41.9 0.4 41.5 0.5 
Convertible Securities at Fair Value
39.9 0.4 37.3 0.4 31.5 0.4 
Equity Method Limited Liability Investments
225.3 2.2 220.4 2.4 187.0 2.3 
Short-term Investments at Cost which Approximates Fair Value
875.4 8.4 470.9 5.1 286.1 3.5 
Other Investments:
Company Owned Life Insurance
327.4 3.1 217.0 2.3 59.3 0.7 
Loans to Policyholders at Unpaid Principal 297.9 2.9 305.6 3.3 300.6 3.7 
Real Estate at Depreciated Cost
98.7 0.9 111.4 1.2 114.2 1.4 
Mortgage Loans
54.6 0.5 27.5 0.3 — — 
Other
0.4 — — — — — 
Total Other Investments
779.0 7.4 661.5 7.1 474.1 5.8 
Total Investments
$10,424.1 100.0 %$9,261.4 100.0 %$8,128.8 100.0 %
1 Sum of percentages for individual lines may not equal subtotals and grand total due to rounding.
29

Kemper Corporation
Details of Invested Assets (continued)
(Dollars in Millions)
(Unaudited)
 Dec 31, 2020Dec 31, 2019Dec 31, 2018
 Carrying
Value
Percent
of Total1
Carrying
Value
Percent
of Total1
Carrying
Value
Percent
of Total1
S&P Equivalent Rating for Fixed Maturities
      
AAA, AA, A
$4,759.9 62.6 %$4,387.1 63.4 %$4,156.6 64.7 %
BBB
2,355.6 31.0 2,044.1 29.5 1,752.6 27.3 
BB, B
353.1 4.6 319.2 4.6 333.7 5.2 
CCC or Lower
137.3 1.8 171.7 2.5 181.3 2.8 
Total Investments in Fixed Maturities
$7,605.9 100.0 %$6,922.1 100.0 %$6,424.2 100.0 %
Duration (in Years)
Total Investments in Fixed Maturities
7.8 7.1 6.2 
1 Sum of percentages for individual lines may not equal subtotals and grand total due to rounding.

30


Kemper Corporation
Investment Concentration
(Dollars in Millions)
(Unaudited)
 Dec 31, 2020Dec 31, 2019Dec 31, 2018
Fair Value of Non-governmental Fixed Maturities by Industry
AmountPercent
of Total
Investments		AmountPercent
of Total
Investments		AmountPercent
of Total
Investments
Finance, Insurance and Real Estate
$1,916.3 18.4 %$1,522.8 16.4 %$1,269.3 15.6 %
Manufacturing
1,633.5 15.7 1,356.4 14.6 1,270.0 15.6 
Transportation, Communication and Utilities
825.5 7.9 650.2 7.0 449.0 5.5 
Services
581.3 5.6 604.4 6.5 516.4 6.4 
Mining
285.7 2.7 154.5 1.7 158.6 2.0 
Retail Trade
172.6 1.7 183.3 2.0 164.8 2.0 
Wholesale Trade
0.5 — 72.9 0.8 78.4 1.0 
Agriculture, Forestry and Fishing
— — 12.4 0.1 13.7 0.2 
Other
10.5 0.1 16.6 0.2 13.3 0.2 
Total Fair Value of Non-governmental Fixed Maturities
$5,425.9 52.1 %$4,573.5 49.3 %$3,933.5 48.5 %
 
Dec 31, 2020
Ten Largest Investment Exposures 1
Fair
Value		Percent
of Total
Investments
Fixed Maturities:
States including their Political Subdivisions:
Texas$140.6 1.3 %
Georgia107.9 1.0 
Colorado85.6 0.8 
New York76.1 0.7 
Michigan73.1 0.7 
Louisiana71.7 0.7 
California70.4 0.7 
Pennsylvania58.1 0.6 
Equity Securities at Fair Value—Other Equity Interests:
iShares® Core MSCI Total International Stock ETF76.3 0.7 
Vanguard Total World Stock ETF195.5 1.9 
Total$955.3 9.1 %
1Excluding Investments in U.S. Government and Government Agencies and Authorities at December 31, 2020.

 

31


Kemper Corporation
Municipal Bond Securities
(Dollars in Millions)
(Unaudited)
 Dec 31, 2020
State
General
Obligation		Political
Subdivision
General
Obligation		RevenueTotal Fair
Value
Percent
of Total
Muni Bond1
Percent
of Total
Investments1
Texas$10.4 $10.9 $119.3 $140.6 8.8 %1.3 %
Georgia46.6 6.1 55.2 107.9 6.8 1.0 
Colorado— 1.0 84.6 85.6 5.4 0.8 
New York6.7 9.3 60.1 76.1 4.8 0.7 
Louisiana40.5 5.4 25.9 71.8 4.5 0.7 
Michigan40.2 — 32.8 73.0 4.6 0.7 
California7.2 1.1 62.1 70.4 4.4 0.7 
Pennsylvania6.3 2.6 49.2 58.1 3.7 0.6 
Massachusetts4.2 1.5 43.3 49.0 3.1 0.5 
Virginia7.1 17.7 21.6 46.4 2.9 0.4 
Florida5.1 — 43.7 48.8 3.1 0.5 
Minnesota— — 40.3 40.3 2.5 0.4 
Washington15.7 — 30.2 45.9 2.9 0.4 
Oregon34.6 — 10.7 45.3 2.9 0.4 
Ohio6.7 — 34.6 41.3 2.6 0.4 
Utah0.6 — 39.3 39.9 2.5 0.4 
District of Columbia4.7 — 28.9 33.6 2.1 0.3 
South Carolina17.1 1.8 15.9 34.8 2.2 0.3 
New Mexico— — 34.0 34.0 2.1 0.3 
Illinois— — 31.0 31.0 2.0 0.3 
Indiana— — 29.3 29.3 1.8 0.3 
Maryland2.1 8.8 18.5 29.4 1.8 0.3 
Hawaii20.7 0.3 2.7 23.7 1.5 0.2 
Alabama— — 16.0 16.0 1.0 0.2 
Missouri— — 26.4 26.4 1.7 0.3 
Tennessee3.6 8.7 11.4 23.7 1.5 0.2 
Arkansas19.2 — — 19.2 1.2 0.2 
Kentucky— — 18.8 18.8 1.2 0.2 
Mississippi13.7 — 2.6 16.3 1.0 0.2 
Arizona— 0.8 15.1 15.9 1.0 0.2 
Alaska2.0 3.0 10.3 15.3 1.0 0.1 
New Hampshire4.5 0.5 10.4 15.4 1.0 0.1 
Nebraska— 8.6 6.6 15.2 1.0 0.1 
Oklahoma— — 14.2 14.2 0.9 0.1 
Wisconsin— 7.4 7.8 15.2 1.0 0.1 
North Dakota— — 13.1 13.1 0.8 0.1 
New Jersey— — 12.1 12.1 0.8 0.1 
Delaware— — 11.4 11.4 0.7 0.1 
Connecticut13.7 — — 13.7 0.9 0.1 
All Other States0.1 7.3 63.9 71.3 4.5 0.7 
Total$333.3 $102.8 $1,153.3 $1,589.4 100.0 %15.2 %
1 Sum of percentages for individual lines may not equal total due to rounding.
32


Kemper Corporation
Investments in Limited Liability
Companies and Limited Partnerships
(Dollars in Millions)
(Unaudited)
 Unfunded
Commitment		Reported Value
Asset ClassDec 31,
2020		Dec 31,
2020		Dec 31,
2019
Reported as Equity Method Limited Liability Investments:
Mezzanine Debt$57.4 $102.5 $129.3 
Senior Debt22.3 28.6 16.0 
Alternative Energy Partnerships80.0 21.3 — 
Distressed Debt— 14.5 22.7 
Secondary Transactions13.0 11.2 11.5 
Leveraged Buyout0.1 3.5 0.1 
Growth Equity— 0.7 5.3 
Real Estate— 29.9 29.9 
Other— 13.1 5.6 
Total Equity Method Limited Liability Investments172.8 225.3 220.4 
Reported as Other Equity Interests at Fair Value:
Mezzanine Debt72.9 118.3 126.1 
Senior Debt18.9 33.9 39.5 
Distressed Debt24.1 31.8 16.8 
Secondary Transactions6.2 4.2 4.9 
Hedge Funds— 71.6 48.2 
Leveraged Buyout7.6 30.7 4.4 
Other1.1 1.5 8.2 
Total Reported as Other Equity Interests at Fair Value130.8 292.0 248.1 
Reported as Other Equity Interests at Modified Cost:
Mezzanine Debt— — 1.6 
Other0.2 15.7 18.9 
Total Reported as Other Equity Interests at Modified Cost0.2 15.7 20.5 
Total Investments in Limited Liability Companies and Limited Partnerships$303.8 $533.0 $489.0 

33

Kemper Corporation
Definitions of Non-GAAP Financial Measures
The Company believes that investors’ understanding of Kemper’s performance is enhanced by the disclosure of the following non-GAAP financial measures. The methods for calculating these measures may differ from those used by other companies and therefore comparability may be limited.
Book Value Per Share Excluding Goodwill is a calculation that uses a non-GAAP financial measure. It is calculated by dividing shareholders’ equity excluding goodwill by total Common Shares Issued and Outstanding. Book value per share is the most directly comparable GAAP financial measure. Book Value Per Share Excluding Goodwill is a common measure used by analysts and investors to compare similar companies.
Book Value Per Share Excluding Net Unrealized Gains on Fixed Maturities is a calculation that uses a non-GAAP financial measure. It is calculated by dividing shareholders’ equity after excluding the after-tax impact of net unrealized gains on fixed income securities by total Common Shares Issued and Outstanding. Book value per share is the most directly comparable GAAP financial measure. The Company uses the trends in book value per share excluding the after-tax impact of net unrealized gains on fixed income securities in conjunction with book value per share to identify and analyze the change in net worth attributable to management efforts between periods. The Company believes the non-GAAP financial measure is useful to investors because it eliminates the effect of items that can fluctuate significantly from period to period and are generally driven by economic developments, primarily capital market conditions, the magnitude and timing of which are not influenced by management. The Company believes it enhances understanding and comparability of performance by highlighting underlying business activity and profitability drivers. 
Book Value Per Share Excluding Net Unrealized Gains on Fixed Maturities and Goodwill is a calculation that uses a non-GAAP financial measure. It is calculated by dividing shareholders’ equity after excluding the after-tax impact of net unrealized gains on fixed income securities and goodwill by total Common Shares Issued and Outstanding. Book value per share is the most directly comparable GAAP financial measure. The Company uses the trends in book value per share excluding the after-tax impact of net unrealized gains on fixed income securities and goodwill in conjunction with book value per share to identify and analyze the change in net worth excluding goodwill attributable to management efforts between periods. The Company believes the non-GAAP financial measure is useful to investors because it eliminates the effect of items that can fluctuate significantly from period to period and are generally driven by economic developments, primarily capital market conditions, the magnitude and timing of which are not influenced by management. The Company believes it enhances understanding and comparability of performance by highlighting underlying business activity and profitability drivers.
Adjusted Consolidated Net Operating Income (Loss) is an after-tax, non-GAAP financial measure and is computed by excluding from Net Income (Loss) the after-tax impact of:
1) Income (Loss) from Change in Fair Value of Equity and Convertible Securities;
2) Net Realized Gains on Sales of Investments;
3) Impairment Losses;
4) Acquisition Related Transaction, Integration and Other Costs;
5) Debt Extinguishment, Pension and Other Charges; and
6) Significant non-recurring or infrequent items that may not be indicative of ongoing operations.
Significant non-recurring items are excluded when (a) the nature of the charge or gain is such that it is reasonably unlikely to recur within two years and (b) there has been no similar charge or gain within the prior two years. The most directly comparable GAAP financial measure is Net Income (Loss).
The Company believes that Adjusted Consolidated Net Operating Income provides investors with a valuable measure of its ongoing performance because it reveals underlying operational performance trends that otherwise might be less apparent if the items were not excluded. Income (Loss) from Change in Fair Value of Equity and Convertible Securities, Net Realized Gains on Sales of Investments and Impairment Losses related to investments included in the Company’s results may vary significantly between periods and are generally driven by business decisions and external economic developments such as capital market conditions that impact the values of the Company’s investments, the timing of which is unrelated to the insurance underwriting process. Acquisition Related Transaction and Integration Costs may vary significantly between periods and are generally driven by the timing of acquisitions and business decisions which are unrelated to the insurance underwriting process. Debt Extinguishment, Pension 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 are 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. Significant non-recurring items are excluded because, by their nature, they are not indicative of the Company’s business or economic trends.
34

Kemper Corporation
Definitions of Non-GAAP Financial Measures (continued)
A reconciliation of Net Income to Adjusted Consolidated Net Operating Income is presented below:
 Three Months EndedYear Ended
Dollars in Millions (Unaudited)Dec 31,
2020		Sep 30,
2020		Jun 30,
2020		Mar 31,
2020		Dec 31,
2019		Sep 30,
2019		Jun 30,
2019		Mar 31,
2019		Dec 31,
2020		Dec 31,
2019
Net Income$97.5 $122.3 $126.1 $64.0 $124.7 $129.0 $122.1 $155.3 $409.9 $531.1 
Less Net Income (Loss) From:
Change in Fair Value of Equity and Convertible Securities57.8 35.7 56.6 (93.1)30.9 7.8 20.1 50.9 57.0 109.7 
Net Realized Gains on Sales of Investments(0.1)7.9 9.3 13.0 2.2 1.4 16.8 12.7 30.1 33.1 
Impairment Losses0.4 (0.8)(5.5)(9.5)(1.3)(1.5)(5.3)(2.8)(15.4)(10.9)
Acquisition Related Transaction, Integration and Other Costs(15.8)(11.4)(13.5)(9.3)(5.0)(4.1)(1.0)(4.4)(50.0)(14.5)
Debt Extinguishment, Pension and Other Charges(50.6)— — — — (4.6)— — (50.6)(4.6)
Adjusted Consolidated Net Operating Income$105.8 $90.9 $79.2 $162.9 $97.9 $130.0 $91.5 $98.9 $438.8 $418.3 
Adjusted Consolidated Net Operating Income Per Unrestricted Share is a non-GAAP financial measure. It is computed by dividing Adjusted Consolidated Net Operating Income by the weighted average unrestricted shares outstanding. The most directly comparable GAAP financial measure is Net Income Per Unrestricted Share‐basic. A reconciliation of Net Income Per Unrestricted Share-basic to Adjusted Consolidated Net Operating Income Per Unrestricted Share-basic is presented below:
 Three Months EndedYear Ended
(Unaudited)Dec 31,
2020		Sep 30,
2020		Jun 30,
2020		Mar 31,
2020		Dec 31,
2019		Sep 30,
2019		Jun 30,
2019		Mar 31,
2019		Dec 31,
2020		Dec 31,
2019
Net Income Per Unrestricted Share$1.49 $1.87 $1.93 $0.96 $1.87 $1.93 $1.87 $2.38 $6.24 $8.04 
Less Net Income (Loss) Per Unrestricted Share From:
Change in Fair Value of Equity and Convertible Securities0.87 0.54 0.87 (1.40)0.46 0.11 0.31 0.78 0.87 1.66 
Net Realized Gains on Sales of Investments— 0.12 0.14 0.19 0.03 0.02 0.26 0.19 0.46 0.50 
Impairment Losses0.01 (0.01)(0.08)(0.14)(0.02)(0.02)(0.08)(0.04)(0.24)(0.16)
Acquisition Related Transaction and Integration Costs(0.24)(0.17)(0.21)(0.14)(0.06)(0.06)(0.01)(0.07)(0.76)(0.22)
Debt Extinguishment, Pension and Other Charges(0.77)— — — — (0.07)— — (0.77)(0.07)
Adjusted Consolidated Net Operating Income Per Unrestricted Share$1.62 $1.39 $1.21 $2.45 $1.46 $1.95 $1.39 $1.52 $6.68 $6.33 
Underlying Combined Ratio is a non-GAAP financial measure. It is computed by adding the Current Year Non-catastrophe Losses and LAE Ratio with the Insurance Expense Ratio. The most directly comparable GAAP financial measure is the Combined Ratio, which is computed by adding total incurred losses and LAE, including the impact of catastrophe losses and loss and LAE reserve development from prior years, with the Insurance Expense Ratio. The Company believes the underlying combined ratio is useful to investors and is used by management to reveal the trends in the Company’s property and casualty insurance businesses that may be obscured by catastrophe losses and prior-year reserve development. These catastrophe losses cause loss trends to vary significantly between periods as a result of their incidence of occurrence and magnitude, and can have a significant impact on the combined ratio. Prior-year reserve developments are caused by unexpected loss development on historical reserves. Because reserve development relates to the re-estimation of losses from earlier periods, it has no bearing on the performance of our insurance products in the current period. The Company believes it is useful for investors to evaluate these components separately and in the aggregate when reviewing the Company’s underwriting performance. The underlying combined ratio should not be considered a substitute for the combined ratio and does not reflect the overall underwriting profitability of our business. 
35