Exhibit 99.2

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Investor Supplement
Third Quarter 2021
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
Third Quarter 2021
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, FHLB Advances and Ratings
10
Segment Summary Results:
Revenues11
Operating Income12
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
As Adjusted for Acquisition36-39
 






Kemper Corporation
Consolidated Financial Highlights
(Dollars in Millions, Except Per Share Amounts)
(Unaudited)
 Three Months EndedNine Months Ended
Sep 30, 2021Jun 30, 2021Mar 31, 2021Dec 31, 2020Sep 30, 2020Jun 30, 2020Mar 31, 2020Sep 30, 2021Sep 30, 2020
For Period Ended
Earned Premiums
$1,356.1 $1,337.7 $1,200.8 $1,214.0 $1,206.5 $1,085.3 $1,166.4 $3,894.6 $3,458.2 
Net Investment Income
101.9 113.9 103.1 102.7 92.1 67.8 85.6 318.9 245.5 
Change in Value of Alternative Energy Partnership Investments(23.8)(7.7)(15.4)— — — — (46.9)— 
Other Income
12.3 7.0 1.5 1.9 0.9 1.5 90.3 20.8 92.7 
Income (Loss) from Change in Fair Value of Equity and Convertible Securities
(0.6)40.8 52.2 73.1 45.2 71.6 (117.8)92.4 (1.0)
Net Investment Gains (Loss)
9.5 16.0 9.8 0.4 9.0 4.7 4.5 35.3 18.2 
Total Revenues
$1,455.4 $1,507.7 $1,352.0 $1,392.1 $1,353.7 $1,230.9 $1,229.0 $4,315.1 $3,813.6 
Net Income (Loss)$(75.3)$(62.6)$123.2 $97.5 $122.3 $126.1 $64.0 $(14.7)$312.4 
Adjusted Consolidated Net Operating Income (Loss) 1
$(75.8)$(99.4)$87.2 $105.8 $90.9 $79.2 $162.9 $(88.0)$333.0 
Per Unrestricted Common Share Amounts:
Basic:
Net Income (Loss)$(1.18)$(0.97)$1.88 $1.49 $1.87 $1.93 $0.96 $(0.23)$4.75 
Adjusted Consolidated Net Operating Income (Loss) 1
$(1.19)$(1.54)$1.33 $1.62 $1.39 $1.21 $2.45 $(1.36)$5.06 
Diluted:
Net Income (Loss)$(1.18)$(0.97)$1.85 $1.46 $1.83 $1.91 $0.95 $(0.23)$4.67 
Adjusted Consolidated Net Operating Income (Loss) 1
$(1.19)$(1.54)$1.31 $1.59 $1.36 $1.20 $2.43 $(1.36)$4.98 
Dividends Paid to Shareholders Per Share
$0.31 $0.31 $0.31 $0.30 $0.30 $0.30 $0.30 $0.93 $0.90 
At Period End
Total Assets
$14,977.2 $14,950.7 $14,203.7 $14,341.9 $14,090.4 $13,489.4 $12,932.3 
Insurance Reserves
$6,120.3 $5,982.4 $5,541.1 $5,510.0 $5,461.5 $5,375.0 $5,442.4 
Debt
$1,122.1 $1,122.3 $1,122.6 $1,172.8 $1,173.0 $777.7 $778.1 
Shareholders’ Equity
$4,151.2 $4,306.2 $4,339.1 $4,563.4 $4,347.5 $4,187.9 $3,760.8 
Shareholders’ Equity Excluding Goodwill1,2
$2,839.2 $2,994.3 $3,225.1 $3,449.4 $3,233.5 $3,073.9 $2,646.8 
Common Shares Issued and Outstanding (In Millions)
63.652 63.636 65.016 65.436 65.406 65.282 65.365 
Book Value Per Share2
$65.22 $67.67 $66.74 $69.74 $66.47 $64.15 $57.54 
Book Value Per Share Excluding Goodwill1,2
$44.61 $47.05 $49.60 $52.71 $49.44 $47.09 $40.49 
Book Value Per Share Excluding Net Unrealized Gains on Fixed Maturities1,2
$56.94 $58.39 $60.00 $58.67 $56.63 $55.13 $53.53 
Book Value Per Share Excluding Net Unrealized Gains on Fixed Maturities and Goodwill1,2
$36.33 $37.77 $42.87 $41.65 $39.60 $38.07 $36.49 
Debt to Total Capitalization2
21.3 %20.7 %20.6 %20.4 %21.2 %15.7 %17.1 %
Rolling 12 Months Return on 5-point Average Shareholders Equity2,3
1.9 %6.4 %11.1 %9.8 %10.8 %11.4 %11.8 %
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 EndedNine Months Ended
 Sep 30, 2021Jun 30, 2021Mar 31, 2021Dec 31, 2020Sep 30, 2020Jun 30, 2020Mar 31, 2020Sep 30, 2021Sep 30, 2020
Revenues:
Earned Premiums$1,356.1 $1,337.7 $1,200.8 $1,214.0 $1,206.5 $1,085.3 $1,166.4 $3,894.6 $3,458.2 
Net Investment Income101.9 113.9 103.1 102.7 92.1 67.8 85.6 318.9 245.5 
Change in Value of Alternative Energy Partnership Investments(23.8)(7.7)(15.4)— — — — (46.9)— 
Other Income12.3 7.0 1.5 1.9 0.9 1.5 90.3 20.8 92.7 
Income (Loss) from Change in Fair Value of Equity and Convertible Securities(0.6)40.8 52.2 73.1 45.2 71.6 (117.8)92.4 (1.0)
Net Realized Gains (Losses) on Sales of Investments10.1 19.2 13.8 (0.1)10.0 11.7 16.5 43.1 38.2 
Impairment Losses(0.6)(3.2)(4.0)0.5 (1.0)(7.0)(12.0)(7.8)(20.0)
Total Revenues1,455.4 1,507.7 1,352.0 1,392.1 1,353.7 1,230.9 1,229.0 4,315.1 3,813.6 
Expenses:
Policyholders’ Benefits and Incurred Losses and Loss Adjustment Expenses1,211.2 1,224.1 889.5 863.4 877.5 747.5 835.2 3,324.8 2,460.2 
Insurance Expenses311.3 314.0 283.7 279.3 276.9 272.7 271.6 909.0 821.2 
Interest and Other Expenses62.7 59.3 57.2 128.8 47.2 51.0 44.5 179.2 142.7 
Total Expenses1,585.2 1,597.4 1,230.4 1,271.5 1,201.6 1,071.2 1,151.3 4,413.0 3,424.1 
Income (Loss) before Income Taxes(129.8)(89.7)121.6 120.6 152.1 159.7 77.7 (97.9)389.5 
Income Tax Benefit (Expense)54.5 27.1 1.6 (23.1)(29.8)(33.6)(13.7)83.2 (77.1)
Net Income (Loss)$(75.3)$(62.6)$123.2 $97.5 $122.3 $126.1 $64.0 $(14.7)$312.4 
Income (Loss) Per Unrestricted Share:
Basic$(1.18)$(0.97)$1.88 $1.49 $1.87 $1.93 $0.96 $(0.23)$4.75 
Diluted$(1.18)$(0.97)$1.85 $1.46 $1.83 $1.91 $0.95 $(0.23)$4.67 
Net Income (Loss) Per Unrestricted Share:
Basic$(1.18)$(0.97)$1.88 $1.49 $1.87 $1.93 $0.96 $(0.23)$4.75 
Diluted$(1.18)$(0.97)$1.85 $1.46 $1.83 $1.91 $0.95 $(0.23)$4.67 
Dividends Paid to Shareholders Per Share$0.31 $0.31 $0.31 $0.30 $0.30 $0.30 $0.30 $0.93 $0.90 
Weighted Average Unrestricted Common Shares Outstanding (in Millions)63.628 64.377 65.425 65.414 65.363 65.258 66.516 64.470 65.711 
 
4

Kemper Corporation
Consolidated Balance Sheets
(Dollars in Millions)
(Unaudited)
Sep 30, 2021Jun 30, 2021Mar 31, 2021Dec 31, 2020Sep 30, 2020Jun 30, 2020Mar 31, 2020
Assets:
Investments:
Fixed Maturities at Fair Value$7,885.1 $7,835.0 $7,479.4 $7,605.9 $7,504.8 $7,480.4 $6,998.5 
Equity Securities at Fair Value969.6 957.7 897.4 858.5 788.2 783.3 709.8 
Equity Securities at Modified Cost33.0 32.5 36.0 40.1 48.4 48.1 44.8 
Equity Method Limited Liability Investments255.1 245.5 219.2 204.0 206.2 209.9 226.3 
Alternative Energy Partnerships54.2 46.6 54.4 21.3 — — — 
Convertible Securities at Fair Value44.1 43.6 42.6 39.9 36.3 35.0 32.8 
Short-term Investments at Cost which Approximates Fair Value259.7 370.6 196.9 875.4 628.8 154.2 166.7 
Other Investments921.5 910.8 896.8 779.0 762.8 757.5 760.2 
Total Investments10,422.3 10,442.3 9,822.7 10,424.1 9,975.5 9,468.4 8,939.1 
Cash119.8 105.1 547.4 206.1 352.2 389.3 301.3 
Receivables from Policyholders1,481.2 1,479.9 1,260.9 1,194.5 1,249.3 1,165.3 1,219.1 
Other Receivables207.3 214.9 225.4 222.4 214.0 207.1 207.8 
Deferred Policy Acquisition Costs676.6 652.7 611.7 589.3 578.2 560.8 551.5 
Goodwill1,312.0 1,311.9 1,114.0 1,114.0 1,114.0 1,114.0 1,114.0 
Current Income Tax Assets138.7 94.2 65.6 15.6 33.1 3.5 17.8 
Other Assets619.3 649.7 556.0 575.9 574.1 581.0 581.7 
Total Assets$14,977.2 $14,950.7 $14,203.7 $14,341.9 $14,090.4 $13,489.4 $12,932.3 
Liabilities and Shareholders’ Equity:
Insurance Reserves:
Life and Health$3,524.1 $3,551.6 $3,541.6 $3,527.5 $3,511.5 $3,497.7 $3,500.8 
Property and Casualty2,596.2 2,430.8 1,999.5 1,982.5 1,950.0 1,877.3 1,941.6 
Total Insurance Reserves6,120.3 5,982.4 5,541.1 5,510.0 5,461.5 5,375.0 5,442.4 
Unearned Premiums1,965.7 1,968.1 1,713.0 1,615.1 1,681.6 1,642.6 1,621.4 
Policyholder Contract Liabilities481.8 442.7 466.5 467.0 503.7 520.3 430.5 
Deferred Income Tax Liabilities242.4 269.6 227.6 285.7 245.5 226.8 116.0 
Accrued Expenses and Other Liabilities893.7 859.4 793.8 727.9 677.6 759.1 783.1 
Long-term Debt, Current and Non-current, at Amortized Cost1,122.1 1,122.3 1,122.6 1,172.8 1,173.0 777.7 778.1 
Total Liabilities10,826.0 10,644.5 9,864.6 9,778.5 9,742.9 9,301.5 9,171.5 
Shareholders’ Equity:
Common Stock6.4 6.4 6.5 6.5 6.5 6.5 6.5 
Paid-in Capital1,777.0 1,770.9 1,802.1 1,805.2 1,798.5 1,792.5 1,788.2 
Retained Earnings1,888.4 1,985.9 2,140.0 2,071.2 1,993.5 1,891.6 1,791.2 
Accumulated Other Comprehensive Income479.4 543.0 390.5 680.5 549.0 497.3 174.9 
Total Shareholders’ Equity4,151.2 4,306.2 4,339.1 4,563.4 4,347.5 4,187.9 3,760.8 
Total Liabilities and Shareholders’ Equity$14,977.2 $14,950.7 $14,203.7 $14,341.9 $14,090.4 $13,489.4 $12,932.3 
5

Kemper Corporation
Consolidated Statements of Cash Flows
(Dollars in Millions)
 (Unaudited)
 Nine Months Ended
 Sep 30, 2021Sep 30, 2020
Cash Flows from Operating Activities:
Net Income (Loss)$(14.7)$312.4 
Adjustments to Reconcile Net Income (Loss) to Net Cash Provided by Operating Activities:
Net Realized Investment Gains(43.1)(38.2)
Impairment Losses7.8 20.0 
Depreciation and Amortization of Property, Equipment and Software32.8 26.6 
Amortization of Intangibles Assets Acquired46.4 14.1 
Change in Accumulated Undistributed Earnings of Equity Method Limited Liability Investments(50.9)5.6 
(Income) Loss from Alternative Energy Partnership Investments46.9 — 
Decrease (Increase) in Value of Equity and Convertible Securities at Fair Value(92.4)1.0 
Changes in:
Receivables from Policyholders(137.7)(132.2)
Reinsurance Recoverables24.4 13.8 
Deferred Policy Acquisition Costs(87.3)(40.5)
Insurance Reserves429.8 (10.3)
Unearned Premiums172.9 136.1 
Income Taxes(121.5)22.0 
Other94.2 (79.1)
Net Cash Provided by Operating Activities307.6 251.3 
6

Kemper Corporation
Consolidated Statements of Cash Flows
(Dollars in Millions)
 (Unaudited)
 Nine Months Ended
Net Cash Provided by Operating Activities (Carryforward from page 6)$307.6 $251.3 
Cash Flows from Investing Activities:
Proceeds from Sales, Calls, and Maturities of Fixed Maturities1,015.6 707.0 
Proceeds from the Sales of Investments:
Equity Securities139.7 436.5 
Real Estate Investments6.2 5.4 
Mortgage Loans53.1 18.6 
Other Investments39.7 26.5 
Purchases of Investments:
Fixed Maturities(1,322.2)(1,009.7)
Equity Securities(106.0)(324.4)
Real Estate Investments(3.6)(0.5)
Company-Owned Life Insurance(100.0)(100.0)
Mortgage Loans(94.0)(22.7)
Other Investments(92.1)(17.9)
Net Purchases of Short-term Investments715.1 (147.9)
Acquisition of Business, Net of Cash Acquired(316.6)— 
Acquisition of Software and Long-lived Assets(43.9)(46.2)
Other10.0 6.0 
Net Cash Provided (Used In) by Investing Activities(99.0)(469.3)
Cash Flows from Financing Activities:
Net Proceeds from Issuance of Long-term Debt— 395.6 
Repayment of Long-Term Debt(50.0)— 
Proceeds from Policyholder Contract Liabilities298.1 391.8 
Repayment of Policyholder Contract Liabilities(328.1)(192.4)
Proceeds from Shares Issued under Employee Stock Purchase Plan3.9 3.1 
Common Stock Repurchases(161.7)(110.4)
Dividends and Dividend Equivalents Paid(60.8)(59.3)
Other3.7 5.0 
Net Cash Provided by (Used In) Financing Activities(294.9)433.4 
Increase (Decrease) in Cash(86.3)215.4 
Cash, Beginning of Year206.1 136.8 
Cash, End of Period$119.8 $352.2 
7


Kemper Corporation
Capital Metrics
(Dollars and Shares in Millions, Except Per Share Amounts)
(Unaudited)
 Sep 30, 2021Jun 30, 2021Mar 31, 2021Dec 31, 2020Sep 30, 2020Jun 30, 2020Mar 31, 2020
Book Value Per Share   
Numerator
Shareholders’ Equity$4,151.2 $4,306.2 $4,339.1 $4,563.4 $4,347.5 $4,187.9 $3,760.8 
Less: Goodwill(1,312.0)(1,311.9)(1,114.0)(1,114.0)(1,114.0)(1,114.0)(1,114.0)
Shareholders’ Equity Excluding Goodwill1
$2,839.2 $2,994.3 $3,225.1 $3,449.4 $3,233.5 $3,073.9 $2,646.8 
Shareholders’ Equity$4,151.2 $4,306.2 $4,339.1 $4,563.4 $4,347.5 $4,187.9 $3,760.8 
Less: Net Unrealized Gains on Fixed Maturities(526.9)(590.5)(438.0)(724.0)(643.7)(588.6)(261.6)
Shareholders’ Equity Excluding Net Unrealized Gains on Fixed Maturities1
$3,624.3 $3,715.7 $3,901.1 $3,839.4 $3,703.8 $3,599.3 $3,499.2 
Less: Goodwill(1,312.0)(1,311.9)(1,114.0)(1,114.0)(1,114.0)(1,114.0)(1,114.0)
Shareholders’ Equity Excluding Net Unrealized Gains on Fixed Maturities and Goodwill1
$2,312.3 $2,403.8 $2,787.1 $2,725.4 $2,589.8 $2,485.3 $2,385.2 
Denominator
Common Shares Issued and Outstanding63.652 63.636 65.016 65.436 65.406 65.282 65.365 
Book Value Per Share$65.22 $67.67 $66.74 $69.74 $66.47 $64.15 $57.54 
Book Value Per Share Excluding Goodwill1
$44.61 $47.05 $49.60 $52.71 $49.44 $47.09 $40.49 
Book Value Per Share Excluding Net Unrealized Gains on Fixed Maturities1
$56.94 $58.39 $60.00 $58.67 $56.63 $55.13 $53.53 
Book Value Per Share Excluding Net Unrealized Gains on Fixed Maturities and Goodwill1
$36.33 $37.77 $42.87 $41.65 $39.60 $38.07 $36.49 
Return on Shareholders’ Equity
Numerator
Rolling 12 Months Net Income$82.8 $280.4 $469.1 $409.9 $437.1 $443.8 $439.8 
Denominator (5-point Average)
5-point Average Shareholders’ Equity$4,341.5 $4,348.8 $4,239.7 $4,166.4 $4,032.5 $3,899.8 $3,726.2 
Rolling 12 Months Return on Average Shareholders' Equity (5-point Average)1.9 %6.4 %11.1 %9.8 %10.8 %11.4 %11.8 %
Return on Shareholders’ Equity Excluding Goodwill1
Denominator (5-point Average)
5-point Average Shareholders’ Equity Excluding Goodwill1
$3,148.3 $3,195.2 $3,125.7 $3,052.4 $2,918.5 $2,785.8 $2,612.7 
Rolling 12 Months Return on Average Shareholders' Equity Excluding Goodwill (5-point Average)1
2.6 %8.8 %15.0 %13.4 %15.0 %15.9 %16.8 %
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
$3,756.8 $3,751.8 $3,708.5 $3,636.0 $3,554.7 $3,477.1 $3,372.9 
 Rolling 12 Months Return on Average Shareholders' Equity Excluding Net Unrealized Gains on Fixed Maturities (5-point Average)1
2.2 %7.5 %12.6 %11.3 %12.3 %12.8 %13.0 %
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
$2,563.7 $2,598.3 $2,594.5 $2,522.0 $2,440.7 $2,363.1 $2,259.4 
 Rolling 12 Months Return on Average Shareholders' Equity Excluding Net Unrealized Gains on Fixed Maturities and Goodwill (5-point Average)1
3.2 %10.8 %18.1 %16.3 %17.9 %18.8 %19.5 %
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)
 Sep 30, 2021Jun 30, 2021Mar 31, 2021Dec 31, 2020Sep 30, 2020Jun 30, 2020Mar 31, 2020
Debt and Total Capitalization
Debt$1,122.1 $1,122.3 $1,122.6 $1,172.8 $1,173.0 $777.7 $778.1 
Shareholders’ Equity4,151.2 4,306.2 4,339.1 4,563.4 4,347.5 4,187.9 3,760.8 
Total Capitalization$5,273.3 $5,428.5 $5,461.7 $5,736.2 $5,520.5 $4,965.6 $4,538.9 
Ratio of Debt to Shareholders’ Equity27.0 %26.1 %25.9 %25.7 %27.0 %18.6 %20.7 %
Ratio of Debt to Total Capitalization21.3 %20.7 %20.6 %20.4 %21.2 %15.7 %17.1 %
Parent Company Liquidity
Kemper Holding Company Cash and Investments1
$330.6 $214.8 $607.1 $733.2 $738.7 $270.5 $199.1 
Borrowings Available Under Credit Agreement400.0 400.0 400.0 400.0 400.0 400.0 400.0 
Parent Company Liquidity$730.6 $614.8 $1,007.1 $1,133.2 $1,138.7 $670.5 $599.1 
Capital Returned to Shareholders
Cash Dividends Paid 2
$19.7 $20.4 $21.0 $19.7 $19.7 $19.7 $20.0 
1 Includes Kemper's direct non-insurance subsidiaries
2 Three Months Ended
 
9


Kemper Corporation
Debt Outstanding, FHLB Advances and Ratings
(Dollars in Millions)
(Unaudited)
Sep 30, 2021Jun 30, 2021Mar 31, 2021Dec 31, 2020Sep 30, 2020Jun 30, 2020Mar 31, 2020
Kemper Corporation:
Term Loan due July 5, 2023— — — 49.9 49.9 49.9 49.9 
Senior Notes at Amortized Cost:
5.000% Senior Notes due September 19, 2022277.1 277.6 277.9 278.3 278.7 279.1 279.6 
4.350% Senior Notes due February 15, 2025448.9 448.8 448.9 448.8 448.8 448.7 448.6 
2.400% Senior Notes due September 30, 2030396.1 395.9 395.8 395.8 395.6 — — 
Long-term Debt Outstanding$1,122.1 $1,122.3 $1,122.6 $1,172.8 $1,173.0 $777.7 $778.1 
Federal Home Loan Bank Advances to Insurance Subsidiaries:
Reported as Policyholder Contract Liabilities:
Federal Home Loan Bank of Chicago$378.9 $382.8 $407.5 $407.8 $444.1 $454.3 $364.2 
Reported as Debt Outstanding:
Federal Home Loan Bank of Dallas$— $— $— $— $— $— $— 
Federal Home Loan Bank of Chicago$— $— $— $— $— $— $— 
Federal Home Loan Bank of San Francisco$— $— $— $— $— $— $— 
 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 EndedNine Months Ended
 Sep 30, 2021Jun 30, 2021Mar 31, 2021Dec 31, 2020Sep 30, 2020Jun 30, 2020Mar 31, 2020Sep 30, 2021Sep 30, 2020
Revenues:   
Specialty Property & Casualty Insurance:
Earned Premiums:
Specialty Automobile$920.6 $909.6 $785.4 $796.1 $792.2 $689.8 $753.2 $2,615.6 $2,235.2 
Commercial Automobile107.7 100.7 92.2 86.3 79.2 69.2 69.3 300.6 217.7 
Total Specialty Property & Casualty Insurance Earned Premiums1,028.3 1,010.3 877.6 882.4 871.4 759.0 822.5 2,916.2 2,452.9 
Net Investment Income37.0 42.7 35.0 37.9 30.5 16.9 28.8 114.7 76.2 
Change in Value of Alternative Energy Partnership Investments(11.3)(3.7)(7.3)— — — — (22.3)— 
Other Income1.2 1.0 0.9 0.4 0.4 0.1 0.9 3.1 1.4 
Total Specialty Property & Casualty Insurance Revenues1,055.2 1,050.3 906.2 920.7 902.3 776.0 852.2 3,011.7 2,530.5 
Preferred Property & Casualty Insurance:
Earned Premiums:
Preferred Automobile102.6 103.5 103.0 107.1 110.6 99.1 114.9 309.1 324.6 
Homeowners52.5 51.3 50.8 53.3 55.0 55.6 56.8 154.6 167.4 
Other Personal8.6 8.4 8.4 8.8 8.9 8.9 9.2 25.4 27.0 
Total Preferred Property & Casualty Insurance Earned Premiums163.7 163.2 162.2 169.2 174.5 163.6 180.9 489.1 519.0 
Net Investment Income16.1 19.5 15.9 13.4 10.3 4.3 9.7 51.5 24.3 
Change in Value of Alternative Energy Partnership Investments(6.4)(2.0)(4.1)— — — — (12.5)— 
Other Income— — — — — 0.1 — — 0.1 
Total Preferred Property & Casualty Insurance Revenues173.4 180.7 174.0 182.6 184.8 168.0 190.6 528.1 543.4 
Life & Health Insurance:
Earned Premiums:
Life101.5 100.6 98.1 96.5 96.3 95.7 97.2 300.2 289.2 
Accident and Health47.0 47.9 47.4 50.2 48.9 50.8 49.4 142.3 149.1 
Property15.6 15.7 15.5 15.7 15.4 16.2 16.4 46.8 48.0 
Total Life & Health Insurance Earned Premiums164.1 164.2 161.0 162.4 160.6 162.7 163.0 489.3 486.3 
Net Investment Income48.4 52.4 51.1 52.8 50.7 44.3 51.0 151.9 146.0 
Change in Value of Alternative Energy Partnership Investments(6.1)(2.0)(4.0)— — — — (12.1)— 
Other Income0.1 0.1 0.1 — — 0.5 0.1 0.3 0.6 
Total Life & Health Insurance Revenues206.5 214.7 208.2 215.2 211.3 207.5 214.1 629.4 632.9 
Total Segment Revenues1,435.1 1,445.7 1,288.4 1,318.5 1,298.4 1,151.5 1,256.9 4,169.2 3,706.8 
Income (Loss) from Change in Fair Value of Equity and Convertible Securities(0.6)40.8 52.2 73.1 45.2 71.6 (117.8)92.4 (1.0)
Net Realized Gains (Losses) on Sales of Investments10.1 19.2 13.8 (0.1)10.0 11.7 16.5 43.1 38.2 
Impairment Losses(0.6)(3.2)(4.0)0.5 (1.0)(7.0)(12.0)(7.8)(20.0)
Other11.4 5.2 1.6 0.1 1.1 3.1 85.4 18.2 89.6 
Total Revenues$1,455.4 $1,507.7 $1,352.0 $1,392.1 $1,353.7 $1,230.9 $1,229.0 $4,315.1 $3,813.6 
 

11


Kemper Corporation
Segment Operating Results
(Dollars in Millions)
(Unaudited)
 Three Months EndedNine Months Ended
 Sep 30, 2021Jun 30, 2021Mar 31, 2021Dec 31, 2020Sep 30, 2020Jun 30, 2020Mar 31, 2020Sep 30, 2021Sep 30, 2020
Segment Operating Income (Loss):  
Specialty Property & Casualty Insurance$(91.8)$(122.1)$85.2 $111.5 $149.9 $84.5 $75.0 $(128.7)$309.4 
Preferred Property & Casualty Insurance(17.4)(13.4)3.0 19.8 (41.8)0.8 23.0 (27.8)(18.0)
Life & Health Insurance(5.9)13.2 (0.8)9.6 15.2 19.9 26.5 6.5 61.6 
Total Segment Operating Income (Loss)(115.1)(122.3)87.4 140.9 123.3 105.2 124.5 (150.0)353.0 
Partial Satisfaction of Judgment— — — — — — 89.4 — 89.4 
Other(15.5)(13.8)(11.5)(9.7)(11.0)(4.7)(11.1)(40.8)(26.8)
Corporate and Other Operating Income (Loss)(15.5)(13.8)(11.5)(9.7)(11.0)(4.7)78.3 (40.8)62.6 
Total Operating Income (Loss)(130.6)(136.1)75.9 131.2 112.3 100.5 202.8 (190.8)415.6 
Income From:
Change in Fair Value of Equity and Convertible Securities(0.6)40.8 52.2 73.1 45.2 71.6 (117.8)92.4 (1.0)
Net Realized Gains (Losses) on Sales of Investments10.1 19.2 13.8 (0.1)10.0 11.7 16.5 43.1 38.2 
Impairment Losses(0.6)(3.2)(4.0)0.5 (1.0)(7.0)(12.0)(7.8)(20.0)
Acquisition Related Transaction, Integration and Other Costs(8.1)(10.4)(16.3)(20.0)(14.4)(17.1)(11.8)(34.8)(43.3)
Debt Extinguishment, Pension and Other Charges— — — (64.1)— — — — — 
Income (Loss) before Income Taxes$(129.8)$(89.7)$121.6 $120.6 $152.1 $159.7 $77.7 $(97.9)$389.5 
Segment Net Operating Income (Loss):
Specialty Property & Casualty Insurance$(59.3)$(91.7)$80.1 $91.1 $119.2 $67.5 $60.1 $(70.9)$246.8 
Preferred Property & Casualty Insurance(6.4)(8.3)9.6 16.9 (32.7)0.9 18.4 (5.1)(13.4)
Life & Health Insurance2.8 13.0 7.3 9.4 12.2 16.1 22.3 23.1 50.6 
Total Segment Net Operating Income (Loss)(62.9)(87.0)97.0 117.4 98.7 84.5 100.8 (52.9)284.0 
Corporate and Other Net Operating Income (Loss) From:
Partial Satisfaction of Legal Judgment— — — — — — 70.6 — 70.6 
Other(12.9)(12.4)(9.8)(11.6)(7.8)(5.3)(8.5)(35.1)(21.6)
Corporate and Other Net Operating Income (Loss)(12.9)(12.4)(9.8)(11.6)(7.8)(5.3)62.1 (35.1)49.0 
Adjusted Consolidated Net Operating Income (Loss)(75.8)(99.4)87.2 105.8 90.9 79.2 162.9 (88.0)333.0 
Net Income (Loss) From:
Change in Fair Value of Equity and Convertible Securities(0.5)32.3 41.2 57.8 35.7 56.6 (93.1)73.0 (0.8)
Net Realized Gains (Losses) on Sales of Investments7.9 15.2 10.9 (0.1)7.9 9.3 13.0 34.0 30.2 
Impairment Losses(0.5)(2.5)(3.2)0.4 (0.8)(5.5)(9.5)(6.2)(15.8)
Acquisition Related Transaction, Integration and Other Costs(6.4)(8.2)(12.9)(15.8)(11.4)(13.5)(9.3)(27.5)(34.2)
Debt Extinguishment, Pension and Other Charges— — — (50.6)— — — — — 
Net Income (Loss)$(75.3)$(62.6)$123.2 $97.5 $122.3 $126.1 $64.0 $(14.7)$312.4 
 


12


Kemper Corporation
Catastrophe Frequency and Severity
(Dollars in Millions)
(Unaudited)
Nine Months Ended September 30, 2021
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 $542 $13.2 45 $36.5 34 $4.7 49 $48.0 
$5 - $10— — 3 20.4 1 5.4 2 15.9 
$10 - $15— — 1 14.7 1 — — — 
$15 - $20— — — — — — 2 31.0 
$20 - $25— — — — — — — — 
Greater Than $25— — — — — — — — 
Total42 $13.2 49 $71.6 36 $10.1 53 $94.9 
Nine Months Ended September 30, 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 $548 $6.8 48 $38.4 7 $7.1 49 $42.1 
$5 - $10— — 3 21.4 — — 4 31.4 
$10 - $15— — 1 10.6 — — 1 10.7 
$15 - $20— — 1 16.9 — — 1 17.0 
$20 - $25— — — — — — — — 
Greater Than $25— — — — — — — — 
Total48 $6.8 53 $87.3 7 $7.1 55 $101.2 
13

Kemper Corporation
Specialty Property & Casualty Insurance Segment
Results of Operations and Selected Financial Information
(Dollars in Millions)
(Unaudited)
 Three Months EndedNine Months Ended
 Sep 30, 2021Jun 30, 2021Mar 31, 2021Dec 31, 2020Sep 30, 2020Jun 30, 2020Mar 31, 2020Sep 30, 2021Sep 30, 2020
Results of Operations   
Net Premiums Written$1,024.3 $1,082.0 $972.0 $829.2 $914.2 $780.9 $911.2 $3,078.3 $2,606.3 
Total Specialty P&C
Specialty Personal Automobile920.6 909.6 785.4 796.1 792.2 689.8 753.2 2,615.6 2,235.2 
Commercial Automobile107.7 100.7 92.2 86.3 79.2 69.2 69.3 300.6 217.7 
Earned Premium$1,028.3 $1,010.3 $877.6 $882.4 $871.4 $759.0 $822.5 $2,916.2 $2,452.9 
Net Investment Income37.0 42.7 35.0 37.9 30.5 16.9 28.8 114.7 76.2 
Change in Value of Alternative Energy Partnership Investments(11.3)(3.7)(7.3)— — — — (22.3)— 
Other Income1.2 1.0 0.9 0.4 0.4 0.1 0.9 3.1 1.4 
Total Revenues1,055.2 1,050.3 906.2 920.7 902.3 776.0 852.2 3,011.7 2,530.5 
Incurred Losses and LAE related to:
Current Year:
Non-catastrophe Losses and LAE924.4 877.4 650.0 626.2 589.0 515.8 619.8 2,451.8 1,724.6 
Catastrophe Losses and LAE3.4 8.1 1.7 5.5 2.1 4.5 0.2 13.2 6.8 
Prior Years:
Non-catastrophe Losses and LAE25.1 81.3 (1.4)(1.7)1.9 9.6 5.3 105.0 16.8 
Catastrophe Losses and LAE(0.1)— 0.4 0.1 (0.1)— 0.2 0.3 0.1 
Total Incurred Losses and LAE952.8 966.8 650.7 630.1 592.9 529.9 625.5 2,570.3 1,748.3 
Insurance Expenses194.2 205.6 170.3 179.1 159.5 161.2 152.1 570.1 472.8 
Other Expenses— — — — — 0.4 (0.4)— — 
Operating Income (Loss)(91.8)(122.1)85.2 111.5 149.9 84.5 75.0 (128.7)309.4 
Income Tax Benefit (Expense)32.5 30.4 (5.1)(20.4)(30.7)(17.0)(14.9)57.8 (62.6)
Segment Net Operating Income (Loss) $(59.3)$(91.7)$80.1 $91.1 $119.2 $67.5 $60.1 $(70.9)$246.8 
Ratios Based On Earned Premiums
Current Year Non-catastrophe Losses and LAE Ratio90.0 %86.9 %74.1 %71.0 %67.6 %67.9 %75.4 %84.0 %70.3 %
Current Year Catastrophe Losses and LAE Ratio0.3 0.8 0.2 0.6 0.2 0.6 — 0.5 0.3 
Prior Years Non-catastrophe Losses and LAE Ratio2.4 8.0 (0.2)(0.2)0.2 1.3 0.6 3.6 0.7 
Prior Years Catastrophe Losses and LAE Ratio— — — — — — — — — 
Total Incurred Loss and LAE Ratio92.7 95.7 74.1 71.4 68.0 69.8 76.0 88.1 71.3 
Insurance Expense Ratio18.9 20.4 19.4 20.3 18.3 21.2 18.5 19.5 19.3 
Combined Ratio111.6 %116.1 %93.5 %91.7 %86.3 %91.0 %94.5 %107.6 %90.6 %
Underlying Combined Ratio 1
Current Year Non-catastrophe Losses and LAE Ratio90.0 %86.9 %74.1 %71.0 %67.6 %67.9 %75.4 %84.0 %70.3 %
Insurance Expense Ratio18.9 20.4 19.4 20.3 18.3 21.2 18.5 19.5 19.3 
Underlying Combined Ratio108.9 %107.3 %93.5 %91.3 %85.9 %89.1 %93.9 %103.5 %89.6 %
Non-GAAP Measure Reconciliation
Combined Ratio as Reported111.6 %116.1 %93.5 %91.7 %86.3 %91.0 %94.5 %107.6 %90.6 %
Less:
Current Year Catastrophe Losses and LAE Ratio0.3 0.8 0.2 0.6 0.2 0.6 — 0.5 0.3 
Prior Years Non-catastrophe Losses and LAE Ratio2.4 8.0 (0.2)(0.2)0.2 1.3 0.6 3.6 0.7 
Prior Years Catastrophe Losses and LAE Ratio— — — — — — — — — 
Underlying Combined Ratio108.9 %107.3 %93.5 %91.3 %85.9 %89.1 %93.9 %103.5 %89.6 %
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.
14


Kemper Corporation
Specialty Property & Casualty Insurance Segment
Results of Operations and Selected Financial Information (continued)
(Dollars in Millions)
(Unaudited)
Sep 30, 2021Jun 30, 2021Mar 31, 2021Dec 31, 2020Sep 30, 2020Jun 30, 2020Mar 31, 2020
Insurance Reserves:
Non-Standard Automobile$1,841.1 $1,703.1 $1,304.7 $1,308.3 $1,271.9 $1,252.6 $1,326.3 
Commercial Automobile302.4 281.6 257.2 236.5 223.0 221.0 215.1 
Insurance Reserves$2,143.5 $1,984.7 $1,561.9 $1,544.8 $1,494.9 $1,473.6 $1,541.4 
Insurance Reserves:
Loss and Allocated LAE Reserves:
Case and Allocated LAE$1,071.1 $1,005.8 $799.7 $744.6 $718.8 $667.9 $716.0 
Incurred but Not Reported881.6 810.2 614.1 653.6 631.8 660.8 679.1 
Total Loss Reserves1,952.7 1,816.0 1,413.8 1,398.2 1,350.6 1,328.7 1,395.1 
Unallocated LAE Reserves190.8 168.7 148.1 146.6 144.3 144.9 146.3 
Insurance Reserves$2,143.5 $1,984.7 $1,561.9 $1,544.8 $1,494.9 $1,473.6 $1,541.4 

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 EndedNine Months Ended
 Sep 30, 2021Jun 30, 2021Mar 31, 2021Dec 31, 2020Sep 30, 2020Jun 30, 2020Mar 31, 2020Sep 30, 2021Sep 30, 2020
Results of Operations   
Net Premiums Written$902.7 $964.3 $861.5 $736.3 $819.4 $700.5 $830.3 $2,728.5 $2,350.2 
Earned Premiums$920.6 $909.6 $785.4 $796.1 $792.2 $689.8 $753.2 $2,615.6 $2,235.2 
Net Investment Income30.9 35.4 29.1 32.4 26.2 15.2 24.8 95.4 66.2 
Change in Value of Alternative Energy Partnership Investments(8.9)(2.9)(5.8)— — — — (17.6)— 
Other Income1.2 1.0 0.9 0.4 0.4 0.1 0.8 3.1 1.3 
Total Revenues943.8 943.1 809.6 828.9 818.8 705.1 778.8 2,696.5 2,302.7 
Incurred Losses and LAE related to:
Current Year:
Non-catastrophe Losses and LAE843.9 805.1 586.4 569.1 543.4 472.4 576.0 2,235.4 1,591.8 
Catastrophe Losses and LAE3.1 7.4 1.6 5.2 2.0 4.2 0.2 12.1 6.4 
Prior Years:
Non-catastrophe Losses and LAE25.1 76.0 (4.4)(3.1)2.1 11.2 17.8 96.7 31.1 
Catastrophe Losses and LAE(0.1)— 0.4 — (0.1)0.1 0.2 0.3 0.2 
Total Incurred Losses and LAE872.0 888.5 584.0 571.2 547.4 487.9 594.2 2,344.5 1,629.5 
Insurance Expenses176.0 187.7 155.3 162.8 145.6 146.7 139.2 519.0 431.5 
Other Expenses— — — — — 0.4 (0.4)— — 
Operating Income (Loss)(104.2)(133.1)70.3 94.9 125.8 70.1 45.8 (167.0)241.7 
Income Benefit (Expense)32.4 31.8 (4.6)(17.5)(25.7)(14.2)(8.8)59.6 (48.7)
Total Product Line Net Operating Income (Loss)$(71.8)$(101.3)$65.7 $77.4 $100.1 $55.9 $37.0 $(107.4)$193.0 
Ratios Based On Earned Premiums
Current Year Non-catastrophe Losses and LAE Ratio91.7 %88.5 %74.7 %71.4 %68.5 %68.5 %76.5 %85.4 %71.2 %
Current Year Catastrophe Losses and LAE Ratio0.3 0.8 0.2 0.7 0.3 0.6 — 0.5 0.3 
Prior Years Non-catastrophe Losses and LAE Ratio2.7 8.4 (0.6)(0.4)0.3 1.6 2.4 3.7 1.4 
Prior Years Catastrophe Losses and LAE Ratio— — 0.1 — — — — — — 
Total Incurred Loss and LAE Ratio94.7 97.7 74.4 71.7 69.1 70.7 78.9 89.6 72.9 
Insurance Expense Ratio19.1 20.6 19.8 20.4 18.4 21.3 18.5 19.8 19.3 
Combined Ratio113.8 %118.3 %94.2 %92.1 %87.5 %92.0 %97.4 %109.4 %92.2 %
Underlying Combined Ratio 1
Current Year Non-catastrophe Losses and LAE Ratio91.7 %88.5 %74.7 %71.4 %68.5 %68.5 %76.5 %85.4 %71.2 %
Insurance Expense Ratio19.1 20.6 19.8 20.4 18.4 21.3 18.5 19.8 19.3 
Underlying Combined Ratio110.8 %109.1 %94.5 %91.8 %86.9 %89.8 %95.0 %105.2 %90.5 %
Non-GAAP Measure Reconciliation
Combined Ratio113.8 %118.3 %94.2 %92.1 %87.5 %92.0 %97.4 %109.4 %92.2 %
Less:
Current Year Catastrophe Losses and LAE Ratio0.3 0.8 0.2 0.7 0.3 0.6 — 0.5 0.3 
Prior Years Non-catastrophe Losses and LAE Ratio2.7 8.4 (0.6)(0.4)0.3 1.6 2.4 3.7 1.4 
Prior Years Catastrophe Losses and LAE Ratio— — 0.1 — — — — — — 
Underlying Combined Ratio110.8 %109.1 %94.5 %91.8 %86.9 %89.8 %95.0 %105.2 %90.5 %
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 EndedNine Months Ended
 Sep 30, 2021Jun 30, 2021Mar 31, 2021Dec 31, 2020Sep 30, 2020Jun 30, 2020Mar 31, 2020Sep 30, 2021Sep 30, 2020
Results of Operations   
Net Premiums Written$121.6 $117.7 $110.5 $92.9 $94.8 $80.4 $80.9 $349.8 $256.1 
Earned Premiums$107.7 $100.7 $92.2 $86.3 $79.2 $69.2 $69.3 $300.6 $217.7 
Net Investment Income6.1 7.3 5.9 5.5 4.3 1.7 4.0 19.3 10.0 
Change in Value of Alternative Energy Partnership Investments(2.4)(0.8)(1.5)— — — — (4.7)— 
Other Income— — — — — — 0.1 — 0.1 
Total Revenues111.4 107.2 96.6 91.8 83.5 70.9 73.4 315.2 227.8 
Incurred Losses and LAE related to:
Current Year:
Non-catastrophe Losses and LAE80.5 72.3 63.6 57.1 45.6 43.4 43.8 216.4 132.8 
Catastrophe Losses and LAE0.3 0.7 0.1 0.3 0.1 0.3 — 1.1 0.4 
Prior Years:
Non-catastrophe Losses and LAE— 5.3 3.0 1.4 (0.2)(1.6)(12.5)8.3 (14.3)
Catastrophe Losses and LAE— — — 0.1 — (0.1)— — (0.1)
Total Incurred Losses and LAE80.8 78.3 66.7 58.9 45.5 42.0 31.3 225.8 118.8 
Insurance Expenses18.2 17.9 15.0 16.3 13.9 14.5 12.9 51.1 41.3 
Operating Income (Loss)12.4 11.0 14.9 16.6 24.1 14.4 29.2 38.3 67.7 
Income Tax Benefit (Expense)0.1 (1.4)(0.5)(2.9)(5.0)(2.8)(6.1)(1.8)(13.9)
Total Product Line Net Operating Income (Loss)$12.5 $9.6 $14.4 $13.7 $19.1 $11.6 $23.1 $36.5 $53.8 
Ratios Based On Earned Premiums
Current Year Non-catastrophe Losses and LAE Ratio74.7 %71.8 %68.9 %66.3 %57.6 %62.7 %63.2 %71.9 %61.0 %
Current Year Catastrophe Losses and LAE Ratio0.3 0.7 0.1 0.3 0.1 0.4 — 0.4 0.2 
Prior Years Non-catastrophe Losses and LAE Ratio— 5.3 3.3 1.6 (0.3)(2.3)(18.0)2.8 (6.6)
Prior Years Catastrophe Losses and LAE Ratio— — — 0.1 — (0.1)— — — 
Total Incurred Loss and LAE Ratio75.0 77.8 72.3 68.3 57.4 60.7 45.2 75.1 54.6 
Insurance Expense Ratio16.9 17.8 16.3 18.9 17.6 21.0 18.6 17.0 19.0 
Combined Ratio91.9 %95.6 %88.6 %87.2 %75.0 %81.7 %63.8 %92.1 %73.6 %
Underlying Combined Ratio 1
Current Year Non-catastrophe Losses and LAE Ratio74.7 %71.8 %68.9 %66.3 %57.6 %62.7 %63.2 %71.9 %61.0 %
Insurance Expense Ratio16.9 17.8 16.3 18.9 17.6 21.0 18.6 17.0 19.0 
Underlying Combined Ratio91.6 %89.6 %85.2 %85.2 %75.2 %83.7 %81.8 %88.9 %80.0 %
Non-GAAP Measure Reconciliation
Combined Ratio91.9 %95.6 %88.6 %87.2 %75.0 %81.7 %63.8 %92.1 %73.6 %
Less:
Current Year Catastrophe Losses and LAE Ratio0.3 0.7 0.1 0.3 0.1 0.4 — 0.4 0.2 
Prior Years Non-catastrophe Losses and LAE Ratio— 5.3 3.3 1.6 (0.3)(2.3)(18.0)2.8 (6.6)
Prior Years Catastrophe Losses and LAE Ratio— — — 0.1 — (0.1)— — — 
Underlying Combined Ratio91.6 %89.6 %85.2 %85.2 %75.2 %83.7 %81.8 %88.9 %80.0 %
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.
17

Kemper Corporation
Preferred Property & Casualty Insurance Segment
Results of Operations and Selected Financial Information
(Dollars in Millions)
(Unaudited)
 Three Months EndedNine Months Ended
 Sep 30, 2021Jun 30, 2021Mar 31, 2021Dec 31, 2020Sep 30, 2020Jun 30, 2020Mar 31, 2020Sep 30, 2021Sep 30, 2020
Results of Operations   
Net Premiums Written$164.8 $169.6 $154.4 $155.2 $172.2 $161.5 $164.1 $488.8 $497.8 
Earned Premiums$163.7 $163.2 $162.2 $169.2 $174.5 $163.6 $180.9 $489.1 $519.0 
Net Investment Income16.1 19.5 15.9 13.4 10.3 4.3 9.7 51.5 24.3 
Change in Value of Alternative Energy Partnership Investments(6.4)(2.0)(4.1)— — — — (12.5)— 
Other Income— — — — — 0.1 — — 0.1 
Total Revenues173.4 180.7 174.0 182.6 184.8 168.0 190.6 528.1 543.4 
Incurred Losses and LAE related to:
Current Year:
Non-catastrophe Losses and LAE115.6 116.2 96.2 107.1 102.8 82.5 108.5 328.0 293.8 
Catastrophe Losses and LAE23.4 24.2 24.0 (5.3)61.9 20.6 4.8 71.6 87.3 
Prior Years:
Non-catastrophe Losses and LAE— 5.0 0.1 9.5 6.3 8.2 (3.3)5.1 11.2 
Catastrophe Losses and LAE0.1 (3.4)(0.3)0.1 0.1 0.4 (1.1)(3.6)(0.6)
Total Incurred Losses and LAE139.1 142.0 120.0 111.4 171.1 111.7 108.9 401.1 391.7 
Insurance Expenses51.7 52.1 51.0 51.4 55.5 55.5 58.7 154.8 169.7 
Operating Income (Loss)(17.4)(13.4)3.0 19.8 (41.8)0.8 23.0 (27.8)(18.0)
Income Tax Benefit (Expense)11.0 5.1 6.6 (2.9)9.1 0.1 (4.6)22.7 4.6 
Segment Net Operating Income (Loss)$(6.4)$(8.3)$9.6 $16.9 $(32.7)$0.9 $18.4 $(5.1)$(13.4)
Ratios Based On Earned Premiums
Current Year Non-catastrophe Losses and LAE Ratio70.6 %71.2 %59.3 %63.2 %58.9 %50.5 %59.9 %67.1 %56.6 %
Current Year Catastrophe Losses and LAE Ratio14.3 14.8 14.8 (3.1)35.5 12.6 2.7 14.6 16.8 
Prior Years Non-catastrophe Losses and LAE Ratio— 3.1 0.1 5.6 3.6 5.0 (1.8)1.0 2.2 
Prior Years Catastrophe Losses and LAE Ratio0.1 (2.1)(0.2)0.1 0.1 0.2 (0.6)(0.7)(0.1)
Total Incurred Loss and LAE Ratio85.0 87.0 74.0 65.8 98.1 68.3 60.2 82.0 75.5 
Insurance Expense Ratio31.6 31.9 31.4 30.4 31.8 33.9 32.4 31.6 32.7 
Combined Ratio116.6 %118.9 %105.4 %96.2 %129.9 %102.2 %92.6 %113.6 %108.2 %
Underlying Combined Ratio 1
Current Year Non-catastrophe Losses and LAE Ratio70.6 %71.2 %59.3 %63.2 %58.9 %50.5 %59.9 %67.1 %56.6 %
Insurance Expense Ratio31.6 31.9 31.4 30.4 31.8 33.9 32.4 31.6 32.7 
Underlying Combined Ratio102.2 %103.1 %90.7 %93.6 %90.7 %84.4 %92.3 %98.7 %89.3 %
Non-GAAP Measure Reconciliation
Combined Ratio as Reported116.6 %118.9 %105.4 %96.2 %129.9 %102.2 %92.6 %113.6 %108.2 %
Less:
Current Year Catastrophe Losses and LAE Ratio14.3 14.8 14.8 (3.1)35.5 12.6 2.7 14.6 16.8 
Prior Years Non-catastrophe Losses and LAE Ratio— 3.1 0.1 5.6 3.6 5.0 (1.8)1.0 2.2 
Prior Years Catastrophe Losses and LAE Ratio0.1 (2.1)(0.2)0.1 0.1 0.2 (0.6)(0.7)(0.1)
Underlying Combined Ratio102.2 %103.1 %90.7 %93.6 %90.7 %84.4 %92.3 %98.7 %89.3 %
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)
Sep 30, 2021Jun 30, 2021Mar 31, 2021Dec 31, 2020Sep 30, 2020Jun 30, 2020Mar 31, 2020
Insurance Reserves:
Preferred Automobile$290.0 $282.9 $275.9 $281.3 $265.2 $252.8 $254.8 
Homeowners108.5 110.7 107.6 104.0 137.9 99.5 90.8 
Other Personal30.1 31.0 30.7 26.3 25.5 25.7 28.8 
Insurance Reserves$428.6 $424.6 $414.2 $411.6 $428.6 $378.0 $374.4 
Insurance Reserves:
Loss and Allocated LAE Reserves:
Case and Allocated LAE$280.8 $282.3 $282.0 $262.2 $266.8 $230.7 $231.1 
Incurred but Not Reported120.4 116.1 105.6 122.0 134.2 119.6 115.1 
Total Loss Reserves401.2 398.4 387.6 384.2 401.0 350.3 346.2 
Unallocated LAE Reserves27.4 26.2 26.6 27.4 27.6 27.7 28.2 
Insurance Reserves$428.6 $424.6 $414.2 $411.6 $428.6 $378.0 $374.4 

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 EndedNine Months Ended
 Sep 30, 2021Jun 30, 2021Mar 31, 2021Dec 31, 2020Sep 30, 2020Jun 30, 2020Mar 31, 2020Sep 30, 2021Sep 30, 2020
Results of Operations   
Net Premiums Written$99.9 $104.4 $100.4 $98.8 $107.2 $95.6 $105.9 $304.7 $308.7 
Earned Premiums$102.6 $103.5 $103.0 $107.1 $110.6 $99.1 $114.9 $309.1 $324.6 
Net Investment Income7.4 9.0 7.3 7.9 6.1 2.5 5.8 23.7 14.4 
Change in Value of Alternative Energy Partnership Investments(3.0)(0.9)(1.9)— — — — (5.8)— 
Other Income— — — — — 0.1 — — 0.1 
Total Revenues107.0 111.6 108.4 115.0 116.7 101.7 120.7 327.0 339.1 
Incurred Losses and LAE related to:
Current Year:
Non-catastrophe Losses and LAE84.8 81.6 67.8 78.0 72.2 53.8 75.9 234.2 201.9 
Catastrophe Losses and LAE2.7 2.8 0.6 0.4 1.8 2.0 0.2 6.1 4.0 
Prior Years:
Non-catastrophe Losses and LAE0.1 3.6 1.2 9.9 5.9 9.7 2.2 4.9 17.8 
Catastrophe Losses and LAE0.1 (0.2)0.1 (0.4)(0.2)(0.3)(0.1)— (0.6)
Total Incurred Losses and LAE87.7 87.8 69.7 87.9 79.7 65.2 78.2 245.2 223.1 
Insurance Expenses32.7 33.6 32.8 32.3 34.7 34.0 36.1 99.1 104.8 
Operating Income (Loss)(13.4)(9.8)5.9 (5.2)2.3 2.5 6.4 (17.3)11.2 
Income Tax Benefit (Expense)6.2 3.1 2.1 1.9 (0.3)(0.4)(1.2)11.4 (1.9)
Total Product Line Net Operating Income (Loss)$(7.2)$(6.7)$8.0 $(3.3)$2.0 $2.1 $5.2 $(5.9)$9.3 
Ratios Based On Earned Premiums
Current Year Non-catastrophe Losses and LAE Ratio82.7 %78.8 %65.8 %72.9 %65.4 %54.3 %66.1 %75.7 %62.2 %
Current Year Catastrophe Losses and LAE Ratio2.6 2.7 0.6 0.4 1.6 2.0 0.2 2.0 1.2 
Prior Years Non-catastrophe Losses and LAE Ratio0.1 3.5 1.2 9.2 5.3 9.8 1.9 1.6 5.5 
Prior Years Catastrophe Losses and LAE Ratio0.1 (0.2)0.1 (0.4)(0.2)(0.3)(0.1)— (0.2)
Total Incurred Loss and LAE Ratio85.5 84.8 67.7 82.1 72.1 65.8 68.1 79.3 68.7 
Insurance Expense Ratio31.9 32.5 31.8 30.2 31.4 34.3 31.4 32.1 32.3 
Combined Ratio117.4 %117.3 %99.5 %112.3 %103.5 %100.1 %99.5 %111.4 %101.0 %
Underlying Combined Ratio 1
Current Year Non-catastrophe Losses and LAE Ratio82.7 %78.8 %65.8 %72.9 %65.4 %54.3 %66.1 %75.7 %62.2 %
Insurance Expense Ratio31.9 32.5 31.8 30.2 31.4 34.3 31.4 32.1 32.3 
Underlying Combined Ratio114.6 %111.3 %97.6 %103.1 %96.8 %88.6 %97.5 %107.8 %94.5 %
Non-GAAP Measure Reconciliation
Combined Ratio117.4 %117.3 %99.5 %112.3 %103.5 %100.1 %99.5 %111.4 %101.0 %
Less:
Current Year Catastrophe Losses and LAE Ratio2.6 2.7 0.6 0.4 1.6 2.0 0.2 2.0 1.2 
Prior Years Non-catastrophe Losses and LAE Ratio0.1 3.5 1.2 9.2 5.3 9.8 1.9 1.6 5.5 
Prior Years Catastrophe Losses and LAE Ratio0.1 (0.2)0.1 (0.4)(0.2)(0.3)(0.1)— (0.2)
Underlying Combined Ratio114.6 %111.3 %97.6 %103.1 %96.8 %88.6 %97.5 %107.8 %94.5 %
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.
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 EndedNine Months Ended
 Sep 30, 2021Jun 30, 2021Mar 31, 2021Dec 31, 2020Sep 30, 2020Jun 30, 2020Mar 31, 2020Sep 30, 2021Sep 30, 2020
Results of Operations   
Net Premiums Written$64.9 $65.2 $54.0 $56.4 $65.0 $65.9 $58.2 $184.1 $189.1 
Earned Premiums$61.1 $59.7 $59.2 $62.1 $63.9 $64.5 $66.0 $180.0 $194.4 
Net Investment Income8.7 10.5 8.6 5.5 4.2 1.8 3.9 27.8 9.9 
Change in Value of Alternative Energy Partnership Investments(3.4)(1.1)(2.2)— — — — (6.7)— 
Total Revenues66.4 69.1 65.6 67.6 68.1 66.3 69.9 201.1 204.3 
Incurred Losses and LAE related to:
Current Year:
Non-catastrophe Losses and LAE30.8 34.6 28.4 29.1 30.6 28.7 32.6 93.8 91.9 
Catastrophe Losses and LAE20.7 21.4 23.4 (5.7)60.1 18.6 4.6 65.5 83.3 
Prior Years:
Non-catastrophe Losses and LAE(0.1)1.4 (1.1)(0.4)0.4 (1.5)(5.5)0.2 (6.6)
Catastrophe Losses and LAE— (3.2)(0.4)0.5 0.3 0.7 (1.0)(3.6)— 
Total Incurred Losses and LAE51.4 54.2 50.3 23.5 91.4 46.5 30.7 155.9 168.6 
Insurance Expenses19.0 18.5 18.2 19.1 20.8 21.5 22.6 55.7 64.9 
Operating Income (Loss)(4.0)(3.6)(2.9)25.0 (44.1)(1.7)16.6 (10.5)(29.2)
Income Tax Benefit (Expense)4.8 2.0 4.5 (4.8)9.4 0.5 (3.4)11.3 6.5 
Total Product Line Net Operating Income (Loss)$0.8 $(1.6)$1.6 $20.2 $(34.7)$(1.2)$13.2 $0.8 $(22.7)
Ratios Based On Earned Premiums
Current Year Non-catastrophe Losses and LAE Ratio50.4 %58.1 %48.1 %46.8 %47.8 %44.5 %49.3 %52.1 %47.3 %
Current Year Catastrophe Losses and LAE Ratio33.9 35.8 39.5 (9.2)94.1 28.8 7.0 36.4 42.8 
Prior Years Non-catastrophe Losses and LAE Ratio(0.2)2.3 (1.9)(0.6)0.6 (2.3)(8.3)0.1 (3.4)
Prior Years Catastrophe Losses and LAE Ratio— (5.4)(0.7)0.8 0.5 1.1 (1.5)(2.0)— 
Total Incurred Loss and LAE Ratio84.1 90.8 85.0 37.8 143.0 72.1 46.5 86.6 86.7 
Insurance Expense Ratio31.1 31.0 30.7 30.8 32.6 33.3 34.2 30.9 33.4 
Combined Ratio115.2 %121.8 %115.7 %68.6 %175.6 %105.4 %80.7 %117.5 %120.1 %
Underlying Combined Ratio 1
Current Year Non-catastrophe Losses and LAE Ratio50.4 %58.1 %48.1 %46.8 %47.8 %44.5 %49.3 %52.1 %47.3 %
Insurance Expense Ratio31.1 31.0 30.7 30.8 32.6 33.3 34.2 30.9 33.4 
Underlying Combined Ratio81.5 %89.1 %78.8 %77.6 %80.4 %77.8 %83.5 %83.0 %80.7 %
Non-GAAP Measure Reconciliation
Combined Ratio115.2 %121.8 %115.7 %68.6 %175.6 %105.4 %80.7 %117.5 %120.1 %
Less:
Current Year Catastrophe Losses and LAE Ratio33.9 35.8 39.5 (9.2)94.1 28.8 7.0 36.4 42.8 
Prior Years Non-catastrophe Losses and LAE Ratio(0.2)2.3 (1.9)(0.6)0.6 (2.3)(8.3)0.1 (3.4)
Prior Years Catastrophe Losses and LAE Ratio— (5.4)(0.7)0.8 0.5 1.1 (1.5)(2.0)— 
Underlying Combined Ratio81.5 %89.1 %78.8 %77.6 %80.4 %77.8 %83.5 %83.0 %80.7 %
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 EndedNine Months Ended
 Sep 30, 2021Jun 30, 2021Mar 31, 2021Dec 31, 2020Sep 30, 2020Jun 30, 2020Mar 31, 2020Sep 30, 2021Sep 30, 2020
Results of Operations   
Net Premiums Written$56.1 $56.3 $46.1 $48.3 $55.7 $57.2 $49.9 $158.5 $162.8 
Earned Premiums$52.5 $51.3 $50.8 $53.3 $55.0 $55.6 $56.8 $154.6 $167.4 
Net Investment Income7.9 9.6 7.8 5.0 3.8 1.6 3.6 25.3 9.0 
Change in Value of Alternative Energy Partnership Investments(3.1)(1.0)(2.0)— — — — (6.1)— 
Total Revenues57.3 59.9 56.6 58.3 58.8 57.2 60.4 173.8 176.4 
Incurred Losses and LAE related to:
Current Year:
Non-catastrophe Losses and LAE26.6 30.5 24.2 26.5 28.1 25.4 28.7 81.3 82.2 
Catastrophe Losses and LAE20.4 21.8 22.0 (10.1)58.6 18.2 4.5 64.2 81.3 
Prior Years:
Non-catastrophe Losses and LAE(0.2)0.2 (2.5)0.3 2.0 (0.8)(4.3)(2.5)(3.1)
Catastrophe Losses and LAE0.1 (1.8)(0.1)0.6 0.2 0.6 (0.7)(1.8)0.1 
Total Incurred Losses and LAE46.9 50.7 43.6 17.3 88.9 43.4 28.2 141.2 160.5 
Insurance Expenses16.3 16.1 15.7 16.6 18.2 18.6 19.5 48.1 56.3 
Operating Income (Loss)(5.9)(6.9)(2.7)24.4 (48.3)(4.8)12.7 (15.5)(40.4)
Income Tax Benefit (Expense)4.8 2.6 4.1 (4.7)10.3 1.1 (2.6)11.5 8.8 
Total Product Line Net Operating Income (Loss)$(1.1)$(4.3)$1.4 $19.7 $(38.0)$(3.7)$10.1 $(4.0)$(31.6)
Ratios Based On Earned Premiums
Current Year Non-catastrophe Losses and LAE Ratio50.6 %59.4 %47.6 %49.7 %51.1 %45.7 %50.5 %52.6 %49.1 %
Current Year Catastrophe Losses and LAE Ratio38.9 42.5 43.3 (18.9)106.5 32.7 7.9 41.5 48.6 
Prior Years Non-catastrophe Losses and LAE Ratio(0.4)0.4 (4.9)0.6 3.6 (1.4)(7.6)(1.6)(1.9)
Prior Years Catastrophe Losses and LAE Ratio0.2 (3.5)(0.2)1.1 0.4 1.1 (1.2)(1.2)0.1 
Total Incurred Loss and LAE Ratio89.3 98.8 85.8 32.5 161.6 78.1 49.6 91.3 95.9 
Insurance Expense Ratio31.0 31.4 30.9 31.1 33.1 33.5 34.3 31.1 33.6 
Combined Ratio120.3 %130.2 %116.7 %63.6 %194.7 %111.6 %83.9 %122.4 %129.5 %
Underlying Combined Ratio 1
Current Year Non-catastrophe Losses and LAE Ratio50.6 %59.4 %47.6 %49.7 %51.1 %45.7 %50.5 %52.6 %49.1 %
Insurance Expense Ratio31.0 31.4 30.9 31.1 33.1 33.5 34.3 31.1 33.6 
Underlying Combined Ratio81.6 %90.8 %78.5 %80.8 %84.2 %79.2 %84.8 %83.7 %82.7 %
Non-GAAP Measure Reconciliation
Combined Ratio120.3 %130.2 %116.7 %63.6 %194.7 %111.6 %83.9 %122.4 %129.5 %
Less:
Current Year Catastrophe Losses and LAE Ratio38.9 42.5 43.3 (18.9)106.5 32.7 7.9 41.5 48.6 
Prior Years Non-catastrophe Losses and LAE Ratio(0.4)0.4 (4.9)0.6 3.6 (1.4)(7.6)(1.6)(1.9)
Prior Years Catastrophe Losses and LAE Ratio0.2 (3.5)(0.2)1.1 0.4 1.1 (1.2)(1.2)0.1 
Underlying Combined Ratio81.6 %90.8 %78.5 %80.8 %84.2 %79.2 %84.8 %83.7 %82.7 %
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.
22

Kemper Corporation
Preferred Property & Casualty Insurance Segment
Other Personal Insurance - Results of Operations and Selected Financial Information
(Dollars in Millions)
(Unaudited)
 Three Months EndedNine Months Ended
 Sep 30, 2021Jun 30, 2021Mar 31, 2021Dec 31, 2020Sep 30, 2020Jun 30, 2020Mar 31, 2020Sep 30, 2021Sep 30, 2020
Results of Operations   
Net Premiums Written$8.8 $8.9 $7.9 $8.1 $9.3 $8.7 $8.3 $25.6 $26.3 
Earned Premiums$8.6 $8.4 $8.4 $8.8 $8.9 $8.9 $9.2 $25.4 $27.0 
Net Investment Income0.8 0.9 0.8 0.5 0.4 0.2 0.3 2.5 0.9 
Change in Value of Alternative Energy Partnership Investments(0.3)(0.1)(0.2)— — — — (0.6)— 
Total Revenues9.1 9.2 9.0 9.3 9.3 9.1 9.5 27.3 27.9 
Incurred Losses and LAE related to:
Current Year:
Non-catastrophe Losses and LAE4.2 4.1 4.2 2.6 2.5 3.3 3.9 12.5 9.7 
Catastrophe Losses and LAE0.3 (0.4)1.4 4.4 1.5 0.4 0.1 1.3 2.0 
Prior Years:
Non-catastrophe Losses and LAE0.1 1.2 1.4 (0.7)(1.6)(0.7)(1.2)2.7 (3.5)
Catastrophe Losses and LAE(0.1)(1.4)(0.3)(0.1)0.1 0.1 (0.3)(1.8)(0.1)
Total Incurred Losses and LAE4.5 3.5 6.7 6.2 2.5 3.1 2.5 14.7 8.1 
Insurance Expenses2.7 2.4 2.5 2.5 2.6 2.9 3.1 7.6 8.6 
Operating Income (Loss)1.9 3.3 (0.2)0.6 4.2 3.1 3.9 5.0 11.2 
Income Tax Benefit (Expense)— (0.6)0.4 (0.1)(0.9)(0.6)(0.8)(0.2)(2.3)
Total Product Line Net Operating Income (Loss)$1.9 $2.7 $0.2 $0.5 $3.3 $2.5 $3.1 $4.8 $8.9 
Ratios Based On Earned Premiums
Current Year Non-catastrophe Losses and LAE Ratio48.8 %48.9 %50.0 %29.6 %28.1 %37.1 %42.4 %49.3 %36.0 %
Current Year Catastrophe Losses and LAE Ratio3.5 (4.8)16.7 50.0 16.9 4.5 1.1 5.1 7.4 
Prior Years Non-catastrophe Losses and LAE Ratio1.2 14.3 16.7 (8.0)(18.0)(7.9)(13.0)10.6 (13.0)
Prior Years Catastrophe Losses and LAE Ratio(1.2)(16.7)(3.6)(1.1)1.1 1.1 (3.3)(7.1)(0.4)
Total Incurred Loss and LAE Ratio52.3 41.7 79.8 70.5 28.1 34.8 27.2 57.9 30.0 
Insurance Expense Ratio31.4 28.6 29.8 28.4 29.2 32.6 33.7 29.9 31.9 
Combined Ratio83.7 %70.3 %109.6 %98.9 %57.3 %67.4 %60.9 %87.8 %61.9 %
Underlying Combined Ratio 1
Current Year Non-catastrophe Losses and LAE Ratio48.8 %48.9 %50.0 %29.6 %28.1 %37.1 %42.4 %49.3 %36.0 %
Insurance Expense Ratio31.4 28.6 29.8 28.4 29.2 32.6 33.7 29.9 31.9 
Underlying Combined Ratio80.2 %77.5 %79.8 %58.0 %57.3 %69.7 %76.1 %79.2 %67.9 %
Non-GAAP Measure Reconciliation
Combined Ratio83.7 %70.3 %109.6 %98.9 %57.3 %67.4 %60.9 %87.8 %61.9 %
Less:
Current Year Catastrophe Losses and LAE Ratio3.5 (4.8)16.7 50.0 16.9 4.5 1.1 5.1 7.4 
Prior Years Non-catastrophe Losses and LAE Ratio1.2 14.3 16.7 (8.0)(18.0)(7.9)(13.0)10.6 (13.0)
Prior Years Catastrophe Losses and LAE Ratio(1.2)(16.7)(3.6)(1.1)1.1 1.1 (3.3)(7.1)(0.4)
Underlying Combined Ratio80.2 %77.5 %79.8 %58.0 %57.3 %69.7 %76.1 %79.2 %67.9 %
1 Underlying Combined Ratio is a non-GAAP measure, which is computed as the difference between three operating ratios: the combined ratio, the effect of catastrophes (excluding development of prior-year catastrophes) on the combined ratio and the effect of prior-year reserve development at the reporting date (including development on prior-year catastrophes) on the combined ratio.
23


Kemper Corporation
Life & Health Insurance Segment
Results of Operations and Selected Financial Information
(Dollars in Millions)
(Unaudited)
 Three Months EndedNine Months Ended
 Sep 30, 2021Jun 30, 2021Mar 31, 2021Dec 31, 2020Sep 30, 2020Jun 30, 2020Mar 31, 2020Sep 30, 2021Sep 30, 2020
Results of Operations  
Earned Premiums$164.1 $164.2 $161.0 $162.4 $160.6 $162.7 $163.0 $489.3 $486.3 
Net Investment Income48.4 52.4 51.1 52.8 50.7 44.3 51.0 151.9 146.0 
Change in Value of Alternative Energy Partnership Investments(6.1)(2.0)(4.0)— — — — (12.1)— 
Other Income0.1 0.1 0.1 — — 0.5 0.1 0.3 0.6 
Total Revenues206.5 214.7 208.2 215.2 211.3 207.5 214.1 629.4 632.9 
Policyholders’ Benefits and Incurred Losses and LAE119.5 115.3 118.7 121.8 113.6 105.9 100.7 353.5 320.2 
Insurance Expenses92.9 86.2 90.3 83.8 82.5 81.7 86.9 269.4 251.1 
Operating Income (Loss)(5.9)13.2 (0.8)9.6 15.2 19.9 26.5 6.5 61.6 
Income Tax Benefit (Expense)8.7 (0.2)8.1 (0.2)(3.0)(3.8)(4.2)16.6 (11.0)
Segment Net Operating Income (Loss)$2.8 $13.0 $7.3 $9.4 $12.2 $16.1 $22.3 $23.1 $50.6 
 

Sep 30, 2021Jun 30, 2021Mar 31, 2021Dec 31,
2020		Sep 30, 2020Jun 30, 2020Mar 31, 2020
Insurance Reserves:
Future Policyholder Benefits$3,436.1 $3,466.4 $3,448.0 $3,440.5 $3,426.4 $3,407.0 $3,397.1 
Incurred Losses and LAE Reserves:
Life62.3 58.8 68.1 61.1 59.0 61.6 75.5 
Accident and Health25.7 26.4 25.5 25.9 26.1 29.1 28.2 
Property7.4 4.4 5.4 4.6 5.1 3.8 3.1 
Total Incurred Losses and LAE Reserves95.4 89.6 99.0 91.6 90.2 94.5 106.8 
Insurance Reserves$3,531.5 $3,556.0 $3,547.0 $3,532.1 $3,516.6 $3,501.5 $3,503.9 

 

24


Kemper Corporation
Life & Health Insurance Segment
Life Insurance - Results of Operations and Selected Financial Information
(Dollars in Millions)
(Unaudited)
 Three Months EndedNine Months Ended
 Sep 30, 2021Jun 30, 2021Mar 31, 2021Dec 31, 2020Sep 30, 2020Jun 30, 2020Mar 31, 2020Sep 30, 2021Sep 30, 2020
Results of Operations  
Earned Premiums$101.5 $100.6 $98.1 $96.5 $96.3 $95.7 $97.2 $300.2 $289.2 
Net Investment Income47.0 50.9 49.6 52.3 47.5 44.8 48.7 147.5 141.0 
Change in Value of Alternative Energy Partnership Investments(5.8)(1.9)(3.8)— — — — (11.5)— 
Other Income— — — (0.1)— 0.1 — — 0.1 
Total Revenues142.7 149.6 143.9 148.7 143.8 140.6 145.9 436.2 430.3 
Policyholders’ Benefits and Incurred Losses and LAE87.3 81.9 87.9 $89.4 84.0 76.7 68.1 257.1 228.8 
Insurance Expenses61.5 55.6 58.0 52.9 54.7 50.9 60.3 175.1 165.9 
Operating Income (Loss)(6.1)12.1 (2.0)6.4 5.1 13.0 17.5 4.0 35.6 
Income Tax Benefit (Expense)8.4 (0.1)8.0 0.3 (0.8)(2.4)(2.3)16.3 (5.5)
Total Product Line Operating Income (Loss)$2.3 $12.0 $6.0 $6.7 $4.3 $10.6 $15.2 $20.3 $30.1 


Kemper Corporation
Life & Health Insurance Segment
Accident & Health Insurance - Results of Operations and Selected Financial Information
(Dollars in Millions)
(Unaudited)
 Three Months EndedNine Months Ended
 Sep 30, 2021Jun 30, 2021Mar 31, 2021Dec 31, 2020Sep 30, 2020Jun 30, 2020Mar 31, 2020Sep 30, 2021Sep 30, 2020
Results of Operations  
Earned Premiums$47.0 $47.9 $47.4 $50.2 $48.9 $50.8 $49.4 $142.3 $149.1 
Net Investment Income0.9 0.8 1.0 0.3 3.1 (0.4)2.0 2.7 4.7 
Change in Value of Alternative Energy Partnership Investments(0.1)— (0.1)— — — — (0.2)— 
Other Income0.1 0.1 0.1 0.1 — 0.4 0.1 0.3 0.5 
Total Revenues47.9 48.8 48.4 50.6 52.0 50.8 51.5 145.1 154.3 
Policyholders’ Benefits and Incurred Losses and LAE22.9 26.8 24.5 24.5 20.7 22.0 28.1 74.2 70.8 
Insurance Expenses23.5 22.2 24.4 25.1 22.1 24.6 20.1 70.1 66.8 
Operating Income (Loss)1.5 (0.2)(0.5)1.0 9.2 4.2 3.3 0.8 16.7 
Income Tax Benefit (Expense)(0.2)0.1 0.2 — (2.0)(0.9)(0.7)0.1 (3.6)
Total Product Line Net Operating Income (Loss)$1.3 $(0.1)$(0.3)$1.0 $7.2 $3.3 $2.6 $0.9 $13.1 
25


Kemper Corporation
Life & Health Insurance Segment
Property Insurance - Results of Operations and Selected Financial Information
(Dollars in Millions)
(Unaudited)
 Three Months EndedNine Months Ended
 Sep 30, 2021Jun 30, 2021Mar 31, 2021Dec 31, 2020Sep 30, 2020Jun 30, 2020Mar 31, 2020Sep 30, 2021Sep 30, 2020
Results of Operations   
Earned Premiums$15.6 $15.7 $15.5 $15.7 $15.4 $16.2 $16.4 $46.8 $48.0 
Net Investment Income0.5 0.7 0.5 0.2 0.1 (0.1)0.3 1.7 0.3 
Change in Value of Alternative Energy Partnership Investments(0.2)(0.1)(0.1)— — — — (0.4)— 
Total Revenues15.9 16.3 15.9 15.9 15.5 16.1 16.7 48.1 48.3 
Incurred Losses and LAE related to:
Current Year:
Non-catastrophe Losses and LAE3.6 4.2 3.2 2.5 5.2 3.5 4.0 11.0 12.7 
Catastrophe Losses and LAE5.7 2.5 1.9 5.3 3.1 3.2 0.8 10.1 7.1 
Prior Years:
Non-catastrophe Losses and LAE0.4 0.1 0.7 0.1 0.4 0.3 (0.4)1.2 0.3 
Catastrophe Losses and LAE(0.4)(0.2)0.5 — 0.2 0.2 0.1 (0.1)0.5 
Total Incurred Losses and LAE9.3 6.6 6.3 7.9 8.9 7.2 4.5 22.2 20.6 
Insurance Expenses7.9 8.4 7.9 5.8 5.7 6.2 6.5 24.2 18.4 
Operating Income (Loss)(1.3)1.3 1.7 2.2 0.9 2.7 5.7 1.7 9.3 
Income Tax Benefit (Expense)0.5 (0.2)(0.1)(0.5)(0.2)(0.5)(1.2)0.2 (1.9)
Total Product Line Net Operating Income (Loss)$(0.8)$1.1 $1.6 $1.7 $0.7 $2.2 $4.5 $1.9 $7.4 
Ratios Based On Earned Premiums
Current Year Non-catastrophe Losses and LAE Ratio23.1 %26.8 %20.6 %15.9 %33.8 %21.5 %24.3 %23.4 %26.5 %
Current Year Catastrophe Losses and LAE Ratio36.5 15.9 12.3 33.8 20.1 19.8 4.9 21.6 14.8 
Prior Years Non-catastrophe Losses and LAE Ratio2.6 0.6 4.5 0.6 2.6 1.9 (2.4)2.6 0.6 
Prior Years Catastrophe Losses and LAE Ratio(2.6)(1.3)3.2 — 1.3 1.2 0.6 (0.2)1.0 
Total Incurred Loss and LAE Ratio59.6 42.0 40.6 50.3 57.8 44.4 27.4 47.4 42.9 
Insurance Expense Ratio50.6 53.5 51.0 36.9 37.0 38.3 39.6 51.7 38.3 
Combined Ratio110.2 %95.5 %91.6 %87.2 %94.8 %82.7 %67.0 %99.1 %81.2 %
Underlying Combined Ratio 1
Current Year Non-catastrophe Losses and LAE Ratio23.1 %26.8 %20.6 %15.9 %33.8 %21.5 %24.3 %23.4 %26.5 %
Insurance Expense Ratio50.6 53.5 51.0 36.9 37.0 38.3 39.6 51.7 38.3 
Underlying Combined Ratio73.7 %80.3 %71.6 %52.8 %70.8 %59.8 %63.9 %75.1 %64.8 %
Non-GAAP Measure Reconciliation
Combined Ratio110.2 %95.5 %91.6 %87.2 %94.8 %82.7 %67.0 %99.1 %81.2 %
Less:
Current Year Catastrophe Losses and LAE Ratio36.5 15.9 12.3 33.8 20.1 19.8 4.9 21.6 14.8 
Prior Years Non-catastrophe Losses and LAE Ratio2.6 0.6 4.5 0.6 2.6 1.9 (2.4)2.6 0.6 
Prior Years Catastrophe Losses and LAE Ratio(2.6)(1.3)3.2 — 1.3 1.2 0.6 (0.2)1.0 
Underlying Combined Ratio73.7 %80.3 %71.6 %52.8 %70.8 %59.8 %63.9 %75.1 %64.8 %
1 Underlying Combined Ratio is a non-GAAP measure, which is computed as the difference between three operating ratios: the combined ratio, the effect of catastrophes (excluding development of prior-year catastrophes) on the combined ratio and the effect of prior-year reserve development at the reporting date (including development on prior-year catastrophes) on the combined ratio.
26


Kemper Corporation
Expenses
(Dollars in Millions)
(Unaudited)
 Three Months EndedNine Months Ended
 Sep 30, 2021Jun 30, 2021Mar 31, 2021Dec 31, 2020Sep 30, 2020Jun 30, 2020Mar 31, 2020Sep 30, 2021Sep 30, 2020
Insurance Expenses: 
Commissions$210.0 $220.1 $195.2 $183.3 $195.5 $178.2 $188.8 $625.3 $562.5 
General Expenses85.1 82.3 84.6 83.1 74.6 79.2 70.5 252.0 224.3 
Premium Taxes26.5 27.2 25.4 23.0 23.3 23.1 24.8 79.1 71.2 
Total Costs Incurred321.6 329.6 305.2 289.4 293.4 280.5 284.1 956.4 858.0 
Net Policy Acquisition Costs Deferred(23.8)(41.1)(22.4)(11.1)(17.4)(9.3)(13.8)(87.3)(40.5)
Amortization of Valuation of Business Acquired ("VOBA")13.5 25.5 0.9 1.0 0.9 1.5 1.3 39.9 3.7 
Insurance Expenses311.3 314.0 283.7 279.3 276.9 272.7 271.6 909.0 821.2 
Interest and Other Expenses:
Interest Expense10.7 11.2 11.1 11.3 8.3 8.9 7.5 33.0 24.7 
Other Expenses:
Acquisition Related Transaction, Integration and Other Costs8.0 10.4 16.3 20.0 14.4 17.1 11.8 34.7 43.3 
Pension Settlement Expense— — — 64.1 — — — — — 
Other44.0 37.7 29.8 33.4 24.5 25.0 25.2 111.5 74.7 
Other Expenses52.0 48.1 46.1 117.5 38.9 42.1 37.0 146.2 118.0 
Interest and Other Expenses62.7 59.3 57.2 128.8 47.2 51.0 44.5 179.2 142.7 
Total Expenses$374.0 $373.3 $340.9 $408.1 $324.1 $323.7 $316.1 $1,088.2 $963.9 

27


Kemper Corporation
Details of Investment Performance
(Dollars in Millions)
(Unaudited)
 Three Months EndedNine Months Ended
 Sep 30, 2021Jun 30, 2021Mar 31, 2021Dec 31, 2020Sep 30, 2020Jun 30, 2020Mar 31, 2020Sep 30, 2021Sep 30, 2020
Net Investment Income  
Interest on Fixed Income Securities$68.4 $69.7 $69.0 $71.8 $72.7 $74.3 $71.0 $207.1 $218.0 
Dividends on Equity Securities Excluding Alternative Investments2.9 4.8 2.1 4.7 2.8 3.6 4.3 9.8 10.7 
Alternative Investments:
Equity Method Limited Liability Investments12.0 16.4 22.5 7.6 8.2 (12.7)1.8 50.9 (2.7)
Limited Liability Investments Included in Equity Securities9.5 15.3 4.5 14.8 2.4 1.1 3.8 29.3 7.3 
Total Alternative Investments21.5 31.7 27.0 22.4 10.6 (11.6)5.6 80.2 4.6 
Short-term Investments0.2 (0.8)1.2 1.3 2.3 0.3 1.6 0.6 4.2 
Loans to Policyholders5.4 5.4 5.5 5.5 5.5 5.5 5.6 16.3 16.6 
Real Estate2.3 2.4 2.4 2.5 2.3 2.3 2.5 7.1 7.1 
Other9.1 9.3 4.7 3.9 2.7 2.4 4.2 23.1 9.3 
Total Investment Income109.8 122.5 111.9 112.1 98.9 76.8 94.8 344.2 270.5 
Investment Expenses:
Real Estate2.6 2.1 2.1 2.3 1.2 2.7 2.6 6.8 6.5 
Other Investment Expenses5.3 6.5 6.7 7.1 5.6 6.3 6.6 18.5 18.5 
Total Investment Expenses7.9 8.6 8.8 9.4 6.8 9.0 9.2 25.3 25.0 
Net Investment Income$101.9 $113.9 $103.1 $102.7 $92.1 $67.8 $85.6 $318.9 $245.5 
Net Realized Gains (Losses) on Sales of Investments
Fixed Maturities:
Gains on Sales$10.3 $19.2 $13.2 $1.9 $11.9 $10.9 $15.9 $42.7 $38.7 
Losses on Sales(0.4)(0.2)(1.1)(4.4)(1.9)(0.5)(1.1)(1.7)(3.5)
Equity Securities:
Gains on Sales0.1 — 1.7 4.4 0.1 0.1 1.3 1.8 1.5 
Losses on Sales(0.2)— — (1.7)— — (0.2)(0.2)(0.2)
Equity Method Limited Liability Investments:
Gains on Sales0.4 — — — — — — 0.4 — 
Losses on Sales— — — (0.3)(0.1)— — — (0.1)
Real Estate:
Gains (Losses) on Sales(0.1)0.2 — — — 1.2 0.6 0.1 1.8 
Net Realized Gains (Losses) on Sales of Investments$10.1 $19.2 $13.8 $(0.1)$10.0 $11.7 $16.5 $43.1 $38.2 
Net Impairment Losses Recognized in Earnings
Fixed Maturities$0.5 $(0.6)$(3.2)$1.3 $(1.0)$(7.0)$(10.0)$(3.3)$(18.0)
Equity Securities(0.7)(2.6)(0.8)(0.8)— — (2.0)(4.1)(2.0)
Real Estate(0.4)— — — — — — (0.4)— 
Net Impairment Losses Recognized in Earnings$(0.6)$(3.2)$(4.0)$0.5 $(1.0)$(7.0)$(12.0)$(7.8)$(20.0)
 
28


Kemper Corporation
Details of Invested Assets
(Dollars in Millions)
(Unaudited)
 Sep 30, 2021Dec 31, 2020Dec 31, 2019
 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
$502.6 4.8 %$585.3 5.6 %$815.9 8.8 %
States and Political Subdivisions
1,917.3 18.4 1,589.5 15.2 1,515.8 16.4 
Foreign Governments
5.7 0.1 5.2 — 16.8 0.2 
Corporate Securities:
Bonds and Notes
4,433.3 42.5 4,425.4 42.5 3,859.7 41.7 
Redeemable Preferred Stocks
7.4 0.1 7.5 0.1 6.7 0.1 
Collateralized Loan Obligations735.9 7.1 767.7 7.4 618.2 6.7 
Other Mortgage- and Asset-backed
282.9 2.7 225.3 2.2 89.0 1.0 
Total Fixed Maturities Reported at Fair Value
7,885.1 75.7 7,605.9 73.0 6,922.1 74.7 
Equity Securities Reported at Fair Value:
Preferred Stocks
51.7 0.5 59.1 0.6 59.2 0.6 
Common Stocks
42.1 0.4 10.8 0.1 13.2 0.1 
Other Equity Interests:
Exchange Traded Funds
546.9 5.2 496.6 4.8 586.8 6.3 
Limited Liability Companies and Limited Partnerships
328.9 3.2 292.0 2.8 248.1 2.7 
Total Equity Securities Reported at Fair Value
969.6 9.3 858.5 8.2 907.3 9.8 
Equity Securities Reported at Modified Cost:
Preferred Stocks
7.2 0.1 8.1 0.1 9.1 0.1 
Common Stocks
17.5 0.2 16.3 0.2 12.3 0.1 
Limited Liability Companies and Limited Partnerships
8.3 0.1 15.7 0.2 20.5 0.2 
Total Equity Securities Reported at Modified Cost
33.0 0.4 40.1 0.5 41.9 0.4 
Convertible Securities at Fair Value
44.1 0.4 39.9 0.4 37.3 0.4 
Equity Method Limited Liability Investments
255.1 2.4 204.0 2.0 220.4 2.4 
Alternative Energy Partnership Investments54.2 0.5 21.3 0.2 — — 
Short-term Investments at Cost which Approximates Fair Value
259.7 2.5 875.4 8.4 470.9 5.1 
Other Investments:
Company Owned Life Insurance
440.7 4.2 327.4 3.1 217.0 2.3 
Loans to Policyholders at Unpaid Principal 289.6 2.8 297.9 2.9 305.6 3.3 
Real Estate at Depreciated Cost
95.8 0.9 98.7 0.9 111.4 1.2 
Mortgage Loans
94.0 0.9 54.6 0.5 27.5 0.3 
Other
1.4 — 0.4 — — — 
Total Other Investments
921.5 8.8 779.0 7.4 661.5 7.1 
Total Investments
$10,422.3 100.0 %$10,424.1 100.0 %$9,261.4 100.0 %
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)
 Sep 30, 2021Dec 31, 2020Dec 31, 2019
 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
$5,181.5 65.8 %$4,759.9 62.6 %$4,387.1 63.4 %
BBB
2,294.9 29.1 2,355.6 31.0 2,044.1 29.5 
BB, B
295.0 3.7 353.1 4.6 319.2 4.6 
CCC or Lower
113.7 1.4 137.3 1.8 171.7 2.5 
Total Investments in Fixed Maturities
$7,885.1 100.0 %$7,605.9 100.0 %$6,922.1 100.0 %
Duration (in Years)
Total Investments in Fixed Maturities
8.5 7.8 7.1 
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)
 Sep 30, 2021Dec 31, 2020Dec 31, 2019
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
$1,955.8 18.8 %$1,916.3 18.4 %$1,522.8 16.4 %
Manufacturing
1,613.8 15.5 1,633.5 15.7 1,356.4 14.6 
Transportation, Communication and Utilities
827.8 7.9 825.5 7.9 650.2 7.0 
Services
622.1 6.0 581.3 5.6 604.4 6.5 
Mining
269.8 2.6 285.7 2.7 154.5 1.7 
Retail Trade
157.4 1.5 172.6 1.7 183.3 2.0 
Construction10.4 0.1 — — — — 
Wholesale Trade
— — 0.5 — 72.9 0.8 
Agriculture, Forestry and Fishing
— — — — 12.4 0.1 
Other
2.4 — 10.5 0.1 16.6 0.2 
Total Fair Value of Non-governmental Fixed Maturities
$5,459.5 52.4 %$5,425.9 52.1 %$4,573.5 49.3 %
 
Sep 30, 2021
Ten Largest Investment Exposures 1
Fair
Value		Percent
of Total
Investments
Fixed Maturities:
States including their Political Subdivisions:
Texas$149.7 1.4 %
California106.7 1.0 
New York95.2 0.9 
Georgia92.4 0.9 
Colorado81.9 0.8 
Louisiana75.5 0.7 
Florida72.4 0.7 
Pennsylvania71.1 0.7 
Equity Securities at Fair Value—Other Equity Interests:
Vanguard Total World Stock ETF215.0 2.1 
iShares® Core MSCI Total International Stock ETF86.1 0.8 
Total$1,046.0 10.0 %
1Excluding Investments in U.S. Government and Government Agencies and Authorities at September 30, 2021.

 

31


Kemper Corporation
Municipal Bond Securities
(Dollars in Millions)
(Unaudited)
 Sep 30, 2021
State
General
Obligation		Political
Subdivision
General
Obligation		RevenueTotal Fair
Value
Percent
of Total
Muni Bond1
Percent
of Total
Investments1
 Texas $9.0 $23.6 $117.0 $149.6 7.8 %1.4 %
 California 7.2 12.6 86.9 106.7 5.6 1.0 
 New York 6.4 9.0 79.8 95.2 5.0 0.9 
 Georgia 6.5 7.5 78.4 92.4 4.8 0.9 
 Colorado — — 81.9 81.9 4.3 0.8 
 Louisiana 37.6 5.8 32.1 75.5 3.9 0.7 
 Florida — — 72.4 72.4 3.8 0.7 
Pennsylvania6.1 6.4 58.6 71.1 3.7 0.7 
Michigan25.5 — 40.8 66.3 3.5 0.6 
Virginia6.9 17.0 38.9 62.8 3.3 0.6 
Washington18.4 1.8 40.8 61.0 3.2 0.6 
Massachusetts6.4 1.4 52.2 60.0 3.1 0.6 
Oregon32.3 2.9 24.9 60.1 3.1 0.6 
Maryland2.1 8.3 44.1 54.5 2.8 0.5 
Illinois— 0.7 47.3 48.0 2.5 0.5 
Ohio6.4 — 41.1 47.5 2.5 0.5 
Minnesota— 2.3 44.7 47.0 2.5 0.5 
Tennessee3.5 11.8 27.1 42.4 2.2 0.4 
Missouri— 1.3 37.1 38.4 2.0 0.4 
District Of Columbia7.0 — 30.2 37.2 1.9 0.4 
Utah— — 37.1 37.1 1.9 0.4 
New Mexico— — 35.7 35.7 1.9 0.3 
Indiana— — 31.6 31.6 1.6 0.3 
Hawaii22.3 4.5 3.9 30.7 1.6 0.3 
Rhode Island1.8 — 27.6 29.4 1.5 0.3 
Connecticut16.2 — 11.7 27.9 1.5 0.3 
Arizona— 0.8 24.5 25.3 1.3 0.2 
Mississippi14.3 — 10.5 24.8 1.3 0.2 
New Hampshire4.3 0.5 19.3 24.1 1.3 0.2 
South Carolina— 1.7 19.8 21.5 1.1 0.2 
Nebraska— 8.4 12.6 21.0 1.1 0.2 
North Carolina— 2.0 17.4 19.4 1.0 0.2 
Arkansas18.7 — — 18.7 1.0 0.2 
Kentucky— — 18.4 18.4 1.0 0.2 
Alaska— — 17.0 17.0 0.9 0.2 
Oklahoma— — 16.3 16.3 0.9 0.2 
Iowa— — 16.3 16.3 0.9 0.2 
North Dakota— — 14.6 14.6 0.8 0.1 
 Wisconsin 1.0 3.1 9.6 13.7 0.7 0.1 
All Other States2.0 10.6 91.2 103.8 5.4 1.0 
Total$261.9 $144.0 $1,511.4 $1,917.3 100.0 %18.4 %
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 ClassSep 30, 2021Sep 30, 2020Dec 31, 2020
Reported as Equity Method Limited Liability Investments:
Mezzanine Debt$48.3 $111.3 $102.5 
Senior Debt26.8 28.5 28.6 
Distressed Debt— 22.3 14.5 
Secondary Transactions8.5 14.0 11.2 
Leveraged Buyout0.1 7.9 3.5 
Growth Equity— 0.7 0.7 
Real Estate— 30.0 29.9 
Hedge Funds— 25.6 — 
Other— 14.8 13.1 
Total Equity Method Limited Liability Investments83.7 255.1 204.0 
Alternative Energy Partnership Investments— 54.2 21.3 
Reported as Other Equity Interests at Fair Value:
Mezzanine Debt58.3 133.2 118.3 
Senior Debt18.5 29.2 33.9 
Distressed Debt19.9 42.2 31.8 
Secondary Transactions6.8 4.0 4.2 
Hedge Funds— 82.1 71.6 
Leveraged Buyout6.8 35.6 30.7 
Other0.7 2.6 1.5 
Total Reported as Other Equity Interests at Fair Value111.0 328.9 292.0 
Reported as Other Equity Interests at Modified Cost:
Other0.2 8.3 15.7 
Total Reported as Other Equity Interests at Modified Cost0.2 8.3 15.7 
Total Investments in Limited Liability Companies and Limited Partnerships$194.9 $646.5 $533.0 

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:

(i) Income (Loss) from Change in Fair Value of Equity and Convertible Securities;
(ii) Net Realized Gains or Losses on Sales of Investments;
(iii) Impairment Losses;
(iv) Acquisition Related Transaction, Integration and Other Costs;
(v) Debt Extinguishment, Pension and Other Charges; and
(vi) 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). There were no applicable significant non-recurring items that the Company excluded from the calculation of Adjusted Consolidated Net Operating Income for the nine and three months ended September 30, 2021 or 2020.

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 or Losses 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 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. 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 overall profitability of the Company’s businesses.
34

Kemper Corporation
Definitions of Non-GAAP Financial Measures (continued)
A reconciliation of Net Income (Loss) to Adjusted Consolidated Net Operating Income is presented below:
 Three Months EndedNine Months Ended
Dollars in Millions (Unaudited)Sep 30, 2021Jun 30, 2021Mar 31, 2021Dec 31, 2020Sep 30, 2020Jun 30, 2020Mar 31, 2020Sep 30, 2021Sep 30, 2020
Net Income (Loss)$(75.3)$(62.6)$123.2 $97.5 $122.3 $126.1 $64.0 $(14.7)$312.4 
Less Net Income (Loss) From:
Income (Loss) from Change in Fair Value of Equity and Convertible Securities(0.5)32.3 41.2 57.8 35.7 56.6 (93.1)73.0 (0.8)
Net Realized Gains (Losses) on Sales of Investments7.9 15.2 10.9 (0.1)7.9 9.3 13.0 34.0 30.2 
Impairment Losses(0.5)(2.5)(3.2)0.4 (0.8)(5.5)(9.5)(6.2)(15.8)
Acquisition Related Transaction, Integration and Other Costs(6.4)(8.2)(12.9)(15.8)(11.4)(13.5)(9.3)(27.5)(34.2)
Debt Extinguishment, Pension and Other Charges— — — (50.6)— — — — — 
Adjusted Consolidated Net Operating Income (Loss)$(75.8)$(99.4)$87.2 $105.8 $90.9 $79.2 $162.9 $(88.0)$333.0 
Adjusted Consolidated Net Operating Income Per Unrestricted Share is a non-GAAP financial measure. It is computed by dividing Adjusted Consolidated Net Operating Income by the weighted average unrestricted shares outstanding. The most directly comparable GAAP financial measure is Net Income (Loss) Per Unrestricted Share ‐ basic. A reconciliation of Net Income (Loss) Per Unrestricted Share-basic to Adjusted Consolidated Net Operating Income (Loss) Per Unrestricted Share-basic is presented below:
 Three Months EndedNine Months Ended
(Unaudited)Sep 30, 2021Jun 30, 2021Mar 31, 2021Dec 31, 2020Sep 30, 2020Jun 30, 2020Mar 31, 2020Sep 30, 2021Sep 30, 2020
Net Income (Loss) Per Unrestricted Share$(1.18)$(0.97)$1.88 $1.49 $1.87 $1.93 $0.96 $(0.23)$4.75 
Less Net Income (Loss) Per Unrestricted Share From:
Income (Loss) from Change in Fair Value of Equity and Convertible Securities(0.01)0.50 0.63 0.87 0.54 0.87 (1.40)1.13 (0.01)
Net Realized Gains (Losses) on Sales of Investments0.13 0.24 0.17 — 0.12 0.14 0.19 0.53 0.46 
Impairment Losses(0.01)(0.04)(0.05)0.01 (0.01)(0.08)(0.14)(0.10)(0.24)
Acquisition Related Transaction and Integration Costs(0.10)(0.13)(0.20)(0.24)(0.17)(0.21)(0.14)(0.43)(0.52)
Debt Extinguishment, Pension and Other Charges— — — (0.77)— — — — — 
Adjusted Consolidated Net Operating Income (Loss) Per Unrestricted Share$(1.19)$(1.54)$1.33 $1.62 $1.39 $1.21 $2.45 $(1.36)$5.06 

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

The Company believes Underlying Losses and LAE and the Underlying Combined Ratio are useful to investors and uses these financial measures to reveal the trends in the Company’s Property & Casualty Insurance segment that may be obscured by catastrophe losses and prior-year reserve development. These catastrophe losses may cause the Company’s loss trends to vary significantly between periods as a result of their incidence of occurrence and magnitude and can have a significant impact on incurred losses and LAE and the Combined Ratio. Prior-year reserve developments are caused by unexpected loss development on historical reserves. Because reserve development relates to the re-estimation of losses from earlier periods, it has no bearing on the performance of the Company’s insurance products in the current period. The Company believes it is useful for investors to evaluate these components separately and in the aggregate when reviewing the Company’s underwriting performance.
35

Kemper Corporation
As Adjusted for Acquisitions Non-GAAP Financial Measure

As Adjusted for Acquisitions amounts are non-GAAP financial measures. Subsequent to the applicable acquisitions, the As Adjusted for Acquisitions amounts are computed by subtracting the impact of purchase accounting adjustments from the comparable consolidated GAAP financial measure reported by Kemper. The Company believes computing and presenting results on an adjusted basis are useful to investors and are used by management to provide meaningful and comparable year-over-year comparisons.

36

Kemper Corporation
As Adjusted for Acquisitions - Consolidated Financial Highlights
(Dollars in Millions)
(Unaudited)
 Three Months EndedNine Months Ended
 Sep 30, 2021Jun 30, 2021Mar 31, 2021Dec 31, 2020Sep 30, 2020Jun 30, 2020Mar 31, 2020Sep 30, 2021Sep 30, 2020
Earned Premiums
Kemper - GAAP As Reported
$1,356.1 $1,337.7 $1,200.8 $1,214.0 $1,206.5 $1,085.3 $1,166.4 $3,894.6 $3,458.2 
AAC - Prior to Acquisition— — 87.9 91.2 92.6 92.0 90.3 87.9 274.9 
As Adjusted for Acquisitions1
$1,356.1 $1,337.7 $1,288.7 $1,305.2 $1,299.1 $1,177.3 $1,256.7 $3,982.5 $3,733.1 
Adjusted Consolidated Net Operating Income (Loss)
Kemper
$(75.8)$(99.4)$87.2 $105.8 $90.9 $79.2 $162.9 $(88.0)$333.0 
AAC - Prior to Acquisition— — 12.3 9.5 12.4 13.3 10.9 12.3 36.6 
Less: Impact of Purchase Accounting
(6.7)(10.1)(1.8)(3.2)(3.2)(4.4)(4.4)(18.6)(12.0)
As Adjusted for Acquisitions1
$(69.1)$(89.3)$101.3 $118.5 $106.5 $96.9 $178.2 $(57.1)$381.6 
1 As Adjusted for Acquisitions is a non-GAAP financial measure, which is computed by excluding the impact of purchase accounting. See page 36.

37

Kemper Corporation
Selected Financial Information
As Adjusted for Acquisitions - Specialty Property & Casualty Insurance Segment
(Dollars in Millions)
(Unaudited)
 Three Months EndedNine Months Ended
Sep 30, 2021Jun 30, 2021Mar 31, 2021Dec 31, 2020Sep 30, 2020Jun 30, 2020Mar 31, 2020Sep 30, 2021Sep 30, 2020
Earned Premiums
Kemper Specialty P&C - GAAP As Reported$1,028.3 $1,010.3 $877.6 $882.4 $871.4 $759.0 $822.5 $2,916.2 $2,452.9 
AAC - Prior to Acquisition— — 87.9 91.2 92.6 92.0 90.3 87.9 274.9 
As Adjusted for Acquisitions1
$1,028.3 $1,010.3 $965.5 $973.6 $964.0 $851.0 $912.8 $3,004.1 $2,727.8 
Current Year Non-CAT Losses and LAE
Kemper Specialty P&C - GAAP As Reported$924.4 $877.4 $650.0 $626.2 $589.0 $515.8 $619.8 $2,451.8 $1,724.6 
AAC - Prior to Acquisition— — 62.0 62.4 62.6 62.2 62.6 62.0 187.4 
Less: Impact of Purchase Accounting
Amortization of Fair Value Adjustment to Unpaid Loss and LAE0.3 0.3 0.4 0.4 0.3 0.8 0.7 1.0 1.8 
As Adjusted for Acquisitions1
$924.1 $877.1 $711.6 $688.2 $651.3 $577.2 $681.7 $2,512.8 $1,910.2 
Insurance Expenses
Kemper Specialty P&C - GAAP As Reported$194.2 $205.6 $170.3 $179.1 $159.5 $161.2 $152.1 $570.1 $472.8 
AAC - Prior to Acquisition— — 13.1 17.2 18.3 19.7 15.4 13.1 53.4 
Less: Impact of Purchase Accounting
Amortization of VOBA12.8 24.8 0.3 0.3 0.3 0.6 0.6 37.9 1.5 
Amortization of Estimated Legacy AAC Deferred Policy Acquisition Costs ("DPAC")(8.4)(16.0)— — — — — (24.4)— 
Amortization of VOBA, Net of Legacy DPAC4.4 8.8 0.3 0.3 0.3 0.6 0.6 13.5 1.5 
Amortization of Finite Life Intangible Assets Acquired3.1 3.0 0.9 0.9 0.9 0.9 1.2 7.0 3.0 
Other1.1 1.1 1.1 2.9 3.0 3.0 3.4 3.3 9.4 
Total Purchase Accounting Adjustments8.6 12.9 2.3 4.1 4.2 4.5 5.2 23.8 13.9 
As Adjusted for Acquisitions1
$185.6 $192.7 $181.1 $192.2 $173.6 $176.4 $162.3 $559.4 $512.3 
Underlying Combined Ratio1
Kemper Specialty P&C Segment - GAAP As Reported108.9 %107.3 %93.5 %91.3 %85.9 %89.1 %93.9 %103.5 %89.6 %
As Adjusted for Acquisitions1
107.9 %105.9 %92.5 %90.4 %85.6 %88.6 %92.5 %102.3 %88.8 %
1 As Adjusted for Acquisitions is a non-GAAP financial measure, which is computed by excluding the impact of purchase accounting. See page 36.

38

Kemper Corporation
Selected Financial Information
As Adjusted for Acquisitions - Specialty Personal Automobile Insurance
(Dollars in Millions)
(Unaudited)
 Three Months EndedNine Months Ended
Sep 30, 2021Jun 30, 2021Mar 31, 2021Dec 31, 2020Sep 30, 2020Jun 30, 2020Mar 31, 2020Sep 30, 2021Sep 30, 2020
Earned Premiums
Kemper Specialty Personal Automobile Insurance - GAAP As Reported$920.6 $909.6 $785.4 $796.1 $792.2 $689.8 $753.2 $2,615.6 $2,235.2 
AAC - Prior to Acquisition— — 87.9 91.2 92.6 92.0 90.3 87.9 274.9 
As Adjusted for Acquisitions1
$920.6 $909.6 $873.3 $887.3 $884.8 $781.8 $843.5 $2,703.5 $2,510.1 
Current Year Non-CAT Losses and LAE
Kemper Specialty Personal Automobile Insurance - GAAP As Reported$843.9 $805.1 $586.4 $569.1 $543.4 $472.4 $576.0 $2,235.4 $1,591.8 
AAC - Prior to Acquisition— — 62.0 62.4 62.6 62.2 62.6 62.0 187.4 
Less: Impact of Purchase Accounting
Amortization of Fair Value Adjustment to Unpaid Loss and LAE0.3 0.2 0.3 0.3 0.2 0.6 0.6 0.8 1.4 
As Adjusted for Acquisitions1
$843.6 $804.9 $648.1 $631.2 $605.8 $534.0 $638.0 $2,296.6 $1,777.8 
Insurance Expenses
Kemper Specialty Personal Automobile Insurance - GAAP As Reported$176.0 $187.7 $155.3 $162.8 $145.6 $146.7 $139.2 $519.0 $431.5 
AAC - Prior to Acquisition— — 13.1 17.2 18.3 19.7 15.4 13.1 53.4 
Less: Impact of Purchase Accounting
Amortization of VOBA12.8 24.7 0.2 0.2 0.1 0.4 0.4 37.7 0.9 
Amortization of Estimated Legacy AAC Deferred Policy Acquisition Costs ("DPAC")(8.4)(16.0)— — — — — (24.4)— 
Amortization of VOBA, Net of Legacy DPAC4.4 8.7 0.2 0.2 0.1 0.4 0.4 13.3 0.9 
Amortization of Finite Life Intangible Assets Acquired2.9 2.8 0.7 0.7 0.7 0.7 1.1 6.4 2.5 
Other0.8 0.9 0.9 2.4 2.4 2.4 3.0 2.6 7.8 
Total Purchase Accounting Adjustments8.1 12.4 1.8 3.3 3.2 3.5 4.5 22.3 11.2 
As Adjusted for Acquisitions1
$167.9 $175.3 $166.6 $176.7 $160.7 $162.9 $150.1 $509.8 $473.7 
Underlying Combined Ratio1
Kemper Specialty Personal Automobile Insurance - GAAP As Reported110.8 %109.1 %94.5 %91.8 %86.9 %89.8 %95.0 %105.2 %90.5 %
As Adjusted for Acquisitions1
109.9 %107.8 %93.3 %91.1 %86.6 %89.1 %93.4 %103.8 %89.7 %
1 As Adjusted for Acquisitions is a non-GAAP financial measure, which is computed by excluding the impact of purchase accounting. See page 36.

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