Exhibit 99.2

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Investor Supplement
First Quarter 2022
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.
Caution Regarding Forward-Looking Statements

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

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

The COVID-19 outbreak and subsequent global pandemic (“Pandemic”) is an extraordinary catastrophe that creates unique uncertainties and risks. Kemper cannot provide any assurances as to the impacts of the Pandemic and related economic conditions on Kemper’s operating and financial results.

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.



Exhibit 99.2
Non-GAAP Financial Measures
This document contains non-GAAP financial measures to analyze the Company’s operating performance for the periods presented. Because the Company’s calculation of these measures may differ from similar measures used by other companies, investors should be careful when comparing the Company’s non-GAAP financial measures to those of other companies. For detailed disclosures on non-GAAP financial measures please refer to the “Definitions of Non-GAAP Financial Measures” on Pages 34-35.



Kemper Corporation
Investor Supplement
First Quarter 2022
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
Personal Automobile Insurance16
Commercial Automobile Insurance17
Preferred Property & Casualty Insurance Segment - Results of Operations and Selected Financial Information18-19
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 Ended
Mar 31, 2022Dec 31, 2021Sep 30, 2021Jun 30, 2021Mar 31, 2021
For Period Ended
Earned Premiums
$1,338.6 $1,359.1 $1,356.1 $1,337.7 $1,200.8 
Net Investment Income
100.0 108.4 101.9 113.9 103.1 
Change in Value of Alternative Energy Partnership Investments(16.7)(14.3)(23.8)(7.7)(15.4)
Other Income
2.4 — 1.5 1.8 1.5 
Income (Loss) from Change in Fair Value of Equity and Convertible Securities
(28.2)22.2 (0.6)40.8 52.2 
Net Investment Gains (Loss)
(7.4)18.5 9.5 16.0 9.8 
Total Revenues
$1,388.7 $1,493.9 $1,444.6 $1,502.5 $1,352.0 
Net Income (Loss)$(94.8)$(105.8)$(75.3)$(62.6)$123.2 
Adjusted Consolidated Net Operating Income (Loss) 1
$(60.1)$(130.8)$(75.8)$(99.4)$87.2 
Per Unrestricted Common Share Amounts:
Basic:
Net Income (Loss)$(1.49)$(1.66)$(1.18)$(0.97)$1.88 
Adjusted Consolidated Net Operating Income (Loss) 1
$(0.94)$(2.05)$(1.19)$(1.54)$1.33 
Diluted:
Net Income (Loss)$(1.49)$(1.66)$(1.18)$(0.97)$1.85 
Adjusted Consolidated Net Operating Income (Loss) 1
$(0.94)$(2.05)$(1.19)$(1.54)$1.31 
Dividends Paid to Shareholders Per Share
$0.31 $0.31 $0.31 $0.31 $0.31 
At Period End
Total Assets
$14,614.7 $14,916.5 $14,977.2 $14,950.7 $14,203.7 
Insurance Reserves
$6,316.4 $6,313.6 $6,120.3 $5,982.4 $5,541.1 
Debt
$1,385.2 $1,121.9 $1,122.1 $1,122.3 $1,122.6 
Shareholders’ Equity
$3,394.5 $4,007.7 $4,151.2 $4,306.2 $4,339.1 
Shareholders’ Equity Excluding Goodwill1,2
$2,082.5 $2,695.7 $2,839.2 $2,994.3 $3,225.1 
Common Shares Issued and Outstanding (In Millions)
63.800 63.685 63.652 63.636 65.016 
Book Value Per Share2
$53.21 $62.93 $65.22 $67.67 $66.74 
Book Value Per Share Excluding Goodwill1,2
$32.64 $42.33 $44.61 $47.05 $49.60 
Book Value Per Share Excluding Net Unrealized (Gains) Losses on Fixed Maturities1,2
$53.42 $55.04 $56.94 $58.39 $60.00 
Book Value Per Share Excluding Net Unrealized (Gains) Losses on Fixed Maturities and Goodwill1,2
$32.86 $34.44 $36.33 $37.77 $42.87 
Debt to Total Capitalization2
29.0 %21.9 %21.3 %20.7 %20.6 %
Rolling 12 Months Return on 5-point Average Shareholders Equity2,3
(8.4)%(2.8)%1.9 %6.4 %11.1 %
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 Ended
 Mar 31, 2022Dec 31, 2021Sep 30, 2021Jun 30, 2021Mar 31, 2021
Revenues:
Earned Premiums$1,338.6 $1,359.1 $1,356.1 $1,337.7 $1,200.8 
Net Investment Income100.0 108.4 101.9 113.9 103.1 
Change in Value of Alternative Energy Partnership Investments(16.7)(14.3)(23.8)(7.7)(15.4)
Other Income2.4 — 1.5 1.8 1.5 
Income (Loss) from Change in Fair Value of Equity and Convertible Securities(28.2)22.2 (0.6)40.8 52.2 
Net Realized Gains (Losses) on Sales of Investments1.5 21.7 10.1 19.2 13.8 
Impairment Losses(8.9)(3.2)(0.6)(3.2)(4.0)
Total Revenues1,388.7 1,493.9 1,444.6 1,502.5 1,352.0 
Expenses:
Policyholders’ Benefits and Incurred Losses and Loss Adjustment Expenses1,153.4 1,276.0 1,211.2 1,224.1 889.5 
Insurance Expenses304.0 309.1 311.3 314.0 283.7 
Loss from Early Extinguishment of Debt3.7 — — — — 
Interest and Other Expenses54.1 56.2 51.9 54.1 57.2 
Total Expenses1,515.2 1,641.3 1,574.4 1,592.2 1,230.4 
Income (Loss) before Income Taxes(126.5)(147.4)(129.8)(89.7)121.6 
Income Tax Benefit (Expense)31.7 41.6 54.5 27.1 1.6 
Net Income (Loss)$(94.8)$(105.8)$(75.3)$(62.6)$123.2 
Income (Loss) Per Unrestricted Share:
Basic$(1.49)$(1.66)$(1.18)$(0.97)$1.88 
Diluted$(1.49)$(1.66)$(1.18)$(0.97)$1.85 
Net Income (Loss) Per Unrestricted Share:
Basic$(1.49)$(1.66)$(1.18)$(0.97)$1.88 
Diluted$(1.49)$(1.66)$(1.18)$(0.97)$1.85 
Dividends Paid to Shareholders Per Share$0.31 $0.31 $0.31 $0.31 $0.31 
Weighted Average Unrestricted Common Shares Outstanding (in Millions)63.744 63.655 63.628 64.377 65.425 
 
4

Kemper Corporation
Consolidated Balance Sheets
(Dollars in Millions)
(Unaudited)
Mar 31, 2022Dec 31, 2021Sep 30, 2021Jun 30, 2021Mar 31, 2021
Assets:
Investments:
Fixed Maturities at Fair Value$7,783.9 $7,986.9 $7,885.1 $7,835.0 $7,479.4 
Equity Securities at Fair Value571.5 830.6 969.6 957.7 897.4 
Equity Securities at Modified Cost35.2 32.3 33.0 32.5 36.0 
Equity Method Limited Liability Investments230.0 241.9 255.1 245.5 219.2 
Alternative Energy Partnerships22.4 39.6 54.2 46.6 54.4 
Convertible Securities at Fair Value46.1 46.4 44.1 43.6 42.6 
Short-term Investments at Cost which Approximates Fair Value243.8 284.1 259.7 370.6 196.9 
Other Investments1,035.2 925.6 921.5 910.8 896.8 
Total Investments9,968.1 10,387.4 10,422.3 10,442.3 9,822.7 
Cash297.3 148.2 119.8 105.1 547.4 
Receivables from Policyholders1,404.5 1,418.7 1,481.2 1,479.9 1,260.9 
Other Receivables203.4 207.3 207.3 214.9 225.4 
Deferred Policy Acquisition Costs680.0 677.6 676.6 652.7 611.7 
Goodwill1,312.0 1,312.0 1,312.0 1,311.9 1,114.0 
Current Income Tax Assets183.0 173.1 138.7 94.2 65.6 
Other Assets566.4 592.2 619.3 649.7 556.0 
Total Assets$14,614.7 $14,916.5 $14,977.2 $14,950.7 $14,203.7 
Liabilities and Shareholders’ Equity:
Insurance Reserves:
Life and Health$3,556.3 $3,540.9 $3,524.1 $3,551.6 $3,541.6 
Property and Casualty2,760.1 2,772.7 2,596.2 2,430.8 1,999.5 
Total Insurance Reserves6,316.4 6,313.6 6,120.3 5,982.4 5,541.1 
Unearned Premiums1,890.5 1,898.7 1,965.7 1,968.1 1,713.0 
Policyholder Contract Liabilities655.0 504.0 481.8 442.7 466.5 
Deferred Income Tax Liabilities69.6 227.0 242.4 269.6 227.6 
Accrued Expenses and Other Liabilities903.5 843.6 893.7 859.4 793.8 
Long-term Debt, Current and Non-current, at Amortized Cost1,385.2 1,121.9 1,122.1 1,122.3 1,122.6 
Total Liabilities11,220.2 10,908.8 10,826.0 10,644.5 9,864.6 
Shareholders’ Equity:
Common Stock6.4 6.4 6.4 6.4 6.5 
Paid-in Capital1,803.1 1,790.7 1,777.0 1,770.9 1,802.1 
Retained Earnings1,647.3 1,762.5 1,888.4 1,985.9 2,140.0 
Accumulated Other Comprehensive Income (Loss)(62.3)448.1 479.4 543.0 390.5 
Total Shareholders’ Equity3,394.5 4,007.7 4,151.2 4,306.2 4,339.1 
Total Liabilities and Shareholders’ Equity$14,614.7 $14,916.5 $14,977.2 $14,950.7 $14,203.7 
5

Kemper Corporation
Consolidated Statements of Cash Flows
(Dollars in Millions)
 (Unaudited)
 Three Months Ended
 Mar 31,
2022		Mar 31,
2021
Cash Flows from Operating Activities:
Net Income (Loss)$(94.8)$123.2 
Adjustments to Reconcile Net Income (Loss) to Net Cash Provided by (Used in) Operating Activities:
Net Realized Investment (Gains) Losses(1.5)(13.8)
Impairment Losses8.9 4.0 
Depreciation and Amortization of Property, Equipment and Software13.4 11.1 
Amortization of Intangibles Assets Acquired6.2 3.2 
Loss from Early Extinguishment of Debt3.7 — 
Change in Accumulated Undistributed Earnings of Equity Method Limited Liability Investments(5.8)(18.1)
(Income) Loss from Change in Value of Alternative Energy Partnership Investments16.7 15.4 
(Increase) Decrease in Value of Equity and Convertible Securities28.2 (52.2)
Changes in:
Receivables from Policyholders14.2 (66.7)
Reinsurance Recoverables(0.3)5.0 
Deferred Policy Acquisition Costs(2.4)(21.3)
Insurance Reserves2.9 29.8 
Unearned Premiums(8.2)97.9 
Income Taxes(30.5)(37.3)
Other Assets and Liabilities31.1 60.4 
Net Cash Provided by (Used in) Operating Activities(18.2)140.6 
6

Kemper Corporation
Consolidated Statements of Cash Flows
(Dollars in Millions)
 (Unaudited)
 Three Months Ended
 Mar 31,
2022		Mar 31,
2021
Net Cash Provided by Operating Activities (Carryforward from page 6)$(18.2)$140.6 
Cash Flows from Investing Activities:
Proceeds from Sales, Calls, and Maturities of Fixed Maturities128.6 291.2 
Proceeds from the Sales of Investments:
Equity Securities249.7 27.3 
Mortgage Loans22.8 12.8 
Other Investments20.5 7.0 
Purchases of Investments:
Fixed Maturities(527.2)(503.2)
Equity Securities(21.3)(12.5)
Real Estate Investments— (0.2)
Corporate-Owned Life Insurance(100.0)(100.0)
Mortgage Loans(21.3)(33.7)
Other Investments(1.9)(50.1)
Net Sales (Purchases) of Short-term Investments40.3 677.4 
Acquisition of Software and Long-lived Assets(16.0)(9.2)
Other0.7 4.9 
Net Cash Provided by (Used In) Investing Activities(225.1)311.7 
Cash Flows from Financing Activities:
Repayment of Long-Term Debt(280.0)(50.0)
Proceeds from Issuance of 3.800% Senior Notes due February 23, 2032
396.3 — 
Issuance Fees on 3.800% Senior Notes due February 23, 2032
(1.2)— 
Proceeds from Issuance of 5.875% Fixed-Rate Reset Junior Subordinated Debentures Due 2062
145.6 — 
Issuance Fees on 5.875% Fixed-Rate Reset Junior Subordinated Debentures Due 2062
(0.9)— 
Proceeds from Policyholder Contract Obligations208.6 60.7 
Repayment of Policyholder Contract Obligations(57.8)(61.5)
Proceeds from Shares Issued under Employee Stock Purchase Plan1.3 1.2 
Common Stock Repurchases— (42.1)
Dividends and Dividend Equivalents Paid(19.8)(21.0)
Other0.3 1.7 
Net Cash Provided by (Used In) Financing Activities392.4 (111.0)
Increase (Decrease) in Cash149.1 341.3 
Cash, Beginning of Year148.2 206.1 
Cash, End of Period$297.3 $547.4 
7


Kemper Corporation
Capital Metrics
(Dollars and Shares in Millions, Except Per Share Amounts)
(Unaudited)
 Mar 31, 2022Dec 31, 2021Sep 30, 2021Jun 30, 2021Mar 31, 2021
Book Value Per Share  
Numerator
Shareholders’ Equity$3,394.5 $4,007.7 $4,151.2 $4,306.2 $4,339.1 
Less: Goodwill(1,312.0)(1,312.0)(1,312.0)(1,311.9)(1,114.0)
Shareholders’ Equity Excluding Goodwill1
$2,082.5 $2,695.7 $2,839.2 $2,994.3 $3,225.1 
Shareholders’ Equity$3,394.5 $4,007.7 $4,151.2 $4,306.2 $4,339.1 
Less: Net Unrealized (Gains) Losses on Fixed Maturities13.7 (502.6)(526.9)(590.5)(438.0)
Shareholders’ Equity Excluding Net Unrealized (Gains) Losses on Fixed Maturities1
$3,408.2 $3,505.1 $3,624.3 $3,715.7 $3,901.1 
Less: Goodwill(1,312.0)(1,312.0)(1,312.0)(1,311.9)(1,114.0)
Shareholders’ Equity Excluding Net Unrealized (Gains) Losses on Fixed Maturities and Goodwill1
$2,096.2 $2,193.1 $2,312.3 $2,403.8 $2,787.1 
Denominator
Common Shares Issued and Outstanding63.800 63.685 63.652 63.636 65.016 
Book Value Per Share$53.21 $62.93 $65.22 $67.67 $66.74 
Book Value Per Share Excluding Goodwill1
$32.64 $42.33 $44.61 $47.05 $49.60 
Book Value Per Share Excluding Net Unrealized (Gains) Losses on Fixed Maturities1
$53.42 $55.04 $56.94 $58.39 $60.00 
Book Value Per Share Excluding Net Unrealized (Gains) Losses on Fixed Maturities and Goodwill1
$32.86 $34.44 $36.33 $37.77 $42.87 
Return on Shareholders’ Equity
Numerator
Rolling 12 Months Net Income$(338.5)$(120.5)$82.8 $280.4 $469.1 
Denominator (5-point Average)
5-point Average Shareholders’ Equity$4,039.7 $4,273.5 $4,341.5 $4,348.8 $4,239.7 
Rolling 12 Months Return on Average Shareholders' Equity (5-point Average)(8.4)%(2.8)%1.9 %6.4 %11.1 %
Return on Shareholders’ Equity Excluding Goodwill1
Denominator (5-point Average)
5-point Average Shareholders’ Equity Excluding Goodwill1
$2,767.4 $3,040.7 $3,148.3 $3,195.2 $3,125.7 
Rolling 12 Months Return on Average Shareholders' Equity Excluding Goodwill (5-point Average)1
(12.2)%(4.0)%2.6 %8.8 %15.0 %
Return on Shareholders’ Equity Excluding Net Unrealized (Gains) Losses on Fixed Maturities1
Denominator (5-point Average)
5-point Average Shareholders’ Equity Excluding Net Unrealized (Gains) Losses on Fixed Maturities1
$3,630.9 $3,717.1 $3,756.8 $3,751.8 $3,708.5 
 Rolling 12 Months Return on Average Shareholders' Equity Excluding Net Unrealized (Gains) Losses on Fixed Maturities (5-point Average)1
(9.3)%(3.2)%2.2 %7.5 %12.6 %
Return on Shareholders’ Equity Excluding Net Unrealized (Gains) Losses on Fixed Maturities and Goodwill1
Denominator (5-point Average)
5-point Average Shareholders’ Equity Excluding Net Unrealized (Gains) Losses on Fixed Maturities and Goodwill1
$2,358.5 $2,484.3 $2,563.7 $2,598.3 $2,594.5 
 Rolling 12 Months Return on Average Shareholders' Equity Excluding Net Unrealized (Gains) Losses on Fixed Maturities and Goodwill (5-point Average)1
(14.4)%(4.9)%3.2 %10.8 %18.1 %
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)
 Mar 31, 2022Dec 31, 2021Sep 30, 2021Jun 30, 2021Mar 31, 2021
Debt and Total Capitalization
Debt$1,385.2 $1,121.9 $1,122.1 $1,122.3 $1,122.6 
Shareholders’ Equity3,394.5 4,007.7 4,151.2 4,306.2 4,339.1 
Total Capitalization$4,779.7 $5,129.6 $5,273.3 $5,428.5 $5,461.7 
Ratio of Debt to Shareholders’ Equity40.8 %28.0 %27.0 %26.1 %25.9 %
Ratio of Debt to Total Capitalization29.0 %21.9 %21.3 %20.7 %20.6 %
Parent Company Liquidity
Kemper Holding Company Cash and Investments1
$318.3 $233.9 $330.6 $214.8 $607.1 
Borrowings Available Under Credit Agreement600.0 400.0 400.0 400.0 400.0 
Parent Company Liquidity$918.3 $633.9 $730.6 $614.8 $1,007.1 
Capital Returned to Shareholders
Cash Dividends Paid 2
$19.6 $19.9 $19.7 $20.4 $21.0 
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)
Mar 31, 2022Dec 31, 2021Sep 30, 2021Jun 30, 2021Mar 31, 2021
Kemper Corporation:
Senior Notes at Amortized Cost:
5.000% Senior Notes due September 19, 2022— 276.7 277.1 277.6 277.9 
4.350% Senior Notes due February 15, 2025449.1 449.0 448.9 448.8 448.9 
2.400% Senior Notes due September 30, 2030396.3 396.2 396.1 395.9 395.8 
3.800% Subordinated Debentures due 2032395.1 — — — — 
5.875% Fixed-Rate Reset Junior Subordinated Debentures Due 2062 at Amortized Cost144.7 — — — — 
Long-term Debt Outstanding$1,385.2 $1,121.9 $1,122.1 $1,122.3 $1,122.6 
Federal Home Loan Bank Advances to Insurance Subsidiaries:
Reported as Policyholder Contract Liabilities:
Federal Home Loan Bank of Chicago$553.1 $401.9 $378.9 $382.8 $407.5 
Reported as Debt Outstanding:
Federal Home Loan Bank of Dallas$— $— $— $— $— 
Federal Home Loan Bank of Chicago$— $— $— $— $— 
Federal Home Loan Bank of San Francisco$— $— $— $— $— 
 A.M. BestMoody’sS&PFitch
As of Date of Financial Supplement
Kemper Debt Ratings:
Senior Unsecured DebtBBBBaa3BBBBBB
Junior Unsecured DebtBB+Ba1BB+BB+
Insurance Company Financial Strength Ratings:
Trinity Universal Insurance Company
AA3AA
United Insurance Company of America
AA3A-A-



NR - Not Rated

10


Kemper Corporation
Segment Revenues
(Dollars in Millions)
(Unaudited)
 Three Months Ended
 Mar 31, 2022Dec 31, 2021Sep 30, 2021Jun 30, 2021Mar 31, 2021
Revenues:  
Specialty Property & Casualty Insurance:
Earned Premiums:
Personal Automobile$901.7 $918.1 $920.6 $909.6 $785.4 
Commercial Automobile119.9 114.2 107.7 100.7 92.2 
Total Specialty Property & Casualty Insurance Earned Premiums1,021.6 1,032.3 1,028.3 1,010.3 877.6 
Net Investment Income34.9 37.8 37.0 42.7 35.0 
Change in Value of Alternative Energy Partnership Investments(8.4)(6.7)(11.3)(3.7)(7.3)
Other Income1.7 1.0 1.2 1.0 0.9 
Total Specialty Property & Casualty Insurance Revenues1,049.8 1,064.4 1,055.2 1,050.3 906.2 
Preferred Property & Casualty Insurance:
Earned Premiums:
Personal Automobile96.0 101.4 102.6 103.5 103.0 
Homeowners51.3 52.7 52.5 51.3 50.8 
Other Personal8.3 8.5 8.6 8.4 8.4 
Total Preferred Property & Casualty Insurance Earned Premiums155.6 162.6 163.7 163.2 162.2 
Net Investment Income12.5 17.1 16.1 19.5 15.9 
Change in Value of Alternative Energy Partnership Investments(3.9)(3.8)(6.4)(2.0)(4.1)
Total Preferred Property & Casualty Insurance Revenues164.2 175.9 173.4 180.7 174.0 
Life & Health Insurance:
Earned Premiums:
Life101.3 101.5 101.5 100.6 98.1 
Accident and Health45.8 47.6 47.0 47.9 47.4 
Property14.3 15.1 15.6 15.7 15.5 
Total Life & Health Insurance Earned Premiums161.4 164.2 164.1 164.2 161.0 
Net Investment Income49.4 50.8 48.4 52.4 51.1 
Change in Value of Alternative Energy Partnership Investments(4.4)(3.7)(6.1)(2.0)(4.0)
Other Income— (1.6)0.1 0.1 0.1 
Total Life & Health Insurance Revenues206.4 209.7 206.5 214.7 208.2 
Total Segment Revenues1,420.4 1,450.0 1,435.1 1,445.7 1,288.4 
Income (Loss) from Change in Fair Value of Equity and Convertible Securities(28.2)22.2 (0.6)40.8 52.2 
Net Realized Gains (Losses) on Sales of Investments1.5 21.7 10.1 19.2 13.8 
Impairment Losses(8.9)(3.2)(0.6)(3.2)(4.0)
Other3.9 3.2 0.6 — 1.6 
Total Revenues$1,388.7 $1,493.9 $1,444.6 $1,502.5 $1,352.0 
 

11


Kemper Corporation
Segment Operating Results
(Dollars in Millions)
(Unaudited)
 Three Months Ended
 Mar 31, 2022Dec 31, 2021Sep 30, 2021Jun 30, 2021Mar 31, 2021
Segment Operating Income (Loss): 
Specialty Property & Casualty Insurance$(60.2)$(163.4)$(91.8)$(122.1)$85.2 
Preferred Property & Casualty Insurance(9.5)(12.0)(17.4)(13.4)3.0 
Life & Health Insurance1.2 4.0 (5.9)13.2 (0.8)
Total Segment Operating Income (Loss)(68.5)(171.4)(115.1)(122.3)87.4 
Other(14.0)(7.6)(15.5)(13.8)(11.5)
Corporate and Other Operating Income (Loss)(14.0)(7.6)(15.5)(13.8)(11.5)
Total Operating Income (Loss)(82.5)(179.0)(130.6)(136.1)75.9 
Income From:
Change in Fair Value of Equity and Convertible Securities(28.2)22.2 (0.6)40.8 52.2 
Net Realized Gains (Losses) on Sales of Investments1.5 21.7 10.1 19.2 13.8 
Impairment Losses(8.9)(3.2)(0.6)(3.2)(4.0)
Acquisition Related Transaction, Integration and Other Costs(4.7)(9.1)(8.1)(10.4)(16.3)
Loss from Early Extinguishment of Debt(3.7)— — — — 
Income (Loss) before Income Taxes$(126.5)$(147.4)$(129.8)$(89.7)$121.6 
Segment Net Operating Income (Loss):
Specialty Property & Casualty Insurance$(44.7)$(125.2)$(59.3)$(91.7)$80.1 
Preferred Property & Casualty Insurance(6.1)(7.4)(6.4)(8.3)9.6 
Life & Health Insurance3.1 5.1 2.8 13.0 7.3 
Total Segment Net Operating Income (Loss)(47.7)(127.5)(62.9)(87.0)97.0 
Corporate and Other Net Operating Income (Loss) From:
Other(12.4)(3.3)(12.9)(12.4)(9.8)
Corporate and Other Net Operating Income (Loss)(12.4)(3.3)(12.9)(12.4)(9.8)
Adjusted Consolidated Net Operating Income (Loss)(60.1)(130.8)(75.8)(99.4)87.2 
Net Income (Loss) From:
Change in Fair Value of Equity and Convertible Securities(22.3)17.5 (0.5)32.3 41.2 
Net Realized Gains (Losses) on Sales of Investments1.2 17.2 7.9 15.2 10.9 
Impairment Losses(7.0)(2.5)(0.5)(2.5)(3.2)
Acquisition Related Transaction, Integration and Other Costs(3.7)(7.2)(6.4)(8.2)(12.9)
Loss from Early Extinguishment of Debt(2.9)— — — — 
Net Income (Loss)$(94.8)$(105.8)$(75.3)$(62.6)$123.2 
    
 


12


Kemper Corporation
Catastrophe Frequency and Severity
(Dollars in Millions)
(Unaudited)
Three Months Ended March 31, 2022
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 Event1:
Below $511 $2.1 11 $11.4 10 $0.4 11 $13.9 
$5 - $10— — — — — — — — 
$10 - $15— — — — — — — — 
$15 - $20— — — — — — — — 
$20 - $25— — — — — — — — 
Greater Than $25— — — — — — — — 
Total11 $2.1 11 $11.4 10 $0.4 11 $13.9 
Three Months Ended March 31, 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 Event1:
Below $59 $1.7 11 $8.9 8 $1.9 12 $11.4 
$5 - $10— — — — — — — — 
$10 - $15— — — — — — — — 
$15 - $20— — 1 15.1 — — 1 16.2 
$20 - $25— — — — — — — — 
Greater Than $25— — — — — — — — 
Total9 $1.7 12 $24.0 8 $1.9 13 $27.6 
1 Current accident year net incurred catastrophe Losses and LAE only


13

Kemper Corporation
Specialty Property & Casualty Insurance Segment
Results of Operations and Selected Financial Information
(Dollars in Millions)
(Unaudited)
 Three Months Ended
 Mar 31, 2022Dec 31, 2021Sep 30, 2021Jun 30, 2021Mar 31, 2021
Results of Operations   
Net Premiums Written$1,023.7 $979.0 $1,024.3 $1,082.0 $972.0 
Total Specialty P&C
Personal Automobile901.7 918.1 920.6 909.6 785.4 
Commercial Automobile119.9 114.2 107.7 100.7 92.2 
Earned Premium$1,021.6 $1,032.3 $1,028.3 $1,010.3 $877.6 
Net Investment Income34.9 37.8 37.0 42.7 35.0 
Change in Value of Alternative Energy Partnership Investments(8.4)(6.7)(11.3)(3.7)(7.3)
Other Income1.7 1.0 1.2 1.0 0.9 
Total Revenues1,049.8 1,064.4 1,055.2 1,050.3 906.2 
Incurred Losses and LAE related to:
Current Year:
Non-catastrophe Losses and LAE911.7 1,028.5 924.4 877.4 650.0 
Catastrophe Losses and LAE2.1 2.5 3.4 8.1 1.7 
Prior Years:
Non-catastrophe Losses and LAE(3.8)(7.6)25.1 81.3 (1.4)
Catastrophe Losses and LAE0.7 — (0.1)— 0.4 
Total Incurred Losses and LAE910.7 1,023.4 952.8 966.8 650.7 
Insurance Expenses199.3 204.4 194.2 205.6 170.3 
Operating Income (Loss)(60.2)(163.4)(91.8)(122.1)85.2 
Income Tax Benefit (Expense)15.5 38.2 32.5 30.4 (5.1)
Segment Net Operating Income (Loss) $(44.7)$(125.2)$(59.3)$(91.7)$80.1 
Ratios Based On Earned Premiums
Current Year Non-catastrophe Losses and LAE Ratio89.2 %99.6 %90.0 %86.9 %74.1 %
Current Year Catastrophe Losses and LAE Ratio0.2 0.2 0.3 0.8 0.2 
Prior Years Non-catastrophe Losses and LAE Ratio(0.4)(0.7)2.4 8.0 (0.2)
Prior Years Catastrophe Losses and LAE Ratio0.1 — — — — 
Total Incurred Loss and LAE Ratio89.1 99.1 92.7 95.7 74.1 
Insurance Expense Ratio19.5 19.8 18.9 20.4 19.4 
Combined Ratio108.6 %118.9 %111.6 %116.1 %93.5 %
Underlying Combined Ratio 1
Current Year Non-catastrophe Losses and LAE Ratio89.2 %99.6 %90.0 %86.9 %74.1 %
Insurance Expense Ratio19.5 19.8 18.9 20.4 19.4 
Underlying Combined Ratio108.7 %119.4 %108.9 %107.3 %93.5 %
Non-GAAP Measure Reconciliation
Combined Ratio as Reported108.6 %118.9 %111.6 %116.1 %93.5 %
Less:
Current Year Catastrophe Losses and LAE Ratio0.2 0.2 0.3 0.8 0.2 
Prior Years Non-catastrophe Losses and LAE Ratio(0.4)(0.7)2.4 8.0 (0.2)
Prior Years Catastrophe Losses and LAE Ratio0.1 — — — — 
Underlying Combined Ratio108.7 %119.4 %108.9 %107.3 %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.
14


Kemper Corporation
Specialty Property & Casualty Insurance Segment
Results of Operations and Selected Financial Information (continued)
(Dollars in Millions)
(Unaudited)
Mar 31, 2022Dec 31, 2021Sep 30, 2021Jun 30, 2021Mar 31, 2021
Insurance Reserves:
Non-Standard Automobile$1,952.3 $1,985.8 $1,841.1 $1,703.1 $1,304.7 
Commercial Automobile356.5 333.9 302.4 281.6 257.2 
Insurance Reserves$2,308.8 $2,319.7 $2,143.5 $1,984.7 $1,561.9 
Insurance Reserves:
Loss and Allocated LAE Reserves:
Case and Allocated LAE$1,166.0 $1,157.9 $1,071.1 $1,005.8 $799.7 
Incurred but Not Reported934.0 953.0 881.6 810.2 614.1 
Total Loss Reserves2,100.0 2,110.9 1,952.7 1,816.0 1,413.8 
Unallocated LAE Reserves208.8 208.8 190.8 168.7 148.1 
Insurance Reserves$2,308.8 $2,319.7 $2,143.5 $1,984.7 $1,561.9 

15

Kemper Corporation
Specialty Property & Casualty Insurance Segment
Personal Automobile Insurance - Results of Operations and Selected Financial Information
(Dollars in Millions)
(Unaudited)
 Three Months Ended
 Mar 31, 2022Dec 31, 2021Sep 30, 2021Jun 30, 2021Mar 31, 2021
Results of Operations  
Net Premiums Written$884.8 $858.7 $902.7 $964.3 $861.5 
Earned Premiums$901.7 $918.1 $920.6 $909.6 $785.4 
Net Investment Income27.2 31.5 30.9 35.4 29.1 
Change in Value of Alternative Energy Partnership Investments(6.0)(5.3)(8.9)(2.9)(5.8)
Other Income1.7 1.0 1.2 1.0 0.9 
Total Revenues924.6 945.3 943.8 943.1 809.6 
Incurred Losses and LAE related to:
Current Year:
Non-catastrophe Losses and LAE827.7 938.5 843.9 805.1 586.4 
Catastrophe Losses and LAE2.0 2.3 3.1 7.4 1.6 
Prior Years:
Non-catastrophe Losses and LAE(9.0)(11.7)25.1 76.0 (4.4)
Catastrophe Losses and LAE0.7 — (0.1)— 0.4 
Total Incurred Losses and LAE821.4 929.1 872.0 888.5 584.0 
Insurance Expenses177.3 184.3 176.0 187.7 155.3 
Operating Income (Loss)(74.1)(168.1)(104.2)(133.1)70.3 
Income Benefit (Expense)17.7 38.4 32.4 31.8 (4.6)
Total Product Line Net Operating Income (Loss)$(56.4)$(129.7)$(71.8)$(101.3)$65.7 
Ratios Based On Earned Premiums
Current Year Non-catastrophe Losses and LAE Ratio91.8 %102.2 %91.7 %88.5 %74.7 %
Current Year Catastrophe Losses and LAE Ratio0.2 0.3 0.3 0.8 0.2 
Prior Years Non-catastrophe Losses and LAE Ratio(1.0)(1.3)2.7 8.4 (0.6)
Prior Years Catastrophe Losses and LAE Ratio0.1 — — — 0.1 
Total Incurred Loss and LAE Ratio91.1 101.2 94.7 97.7 74.4 
Insurance Expense Ratio19.7 20.1 19.1 20.6 19.8 
Combined Ratio110.8 %121.3 %113.8 %118.3 %94.2 %
Underlying Combined Ratio 1
Current Year Non-catastrophe Losses and LAE Ratio91.8 %102.2 %91.7 %88.5 %74.7 %
Insurance Expense Ratio19.7 20.1 19.1 20.6 19.8 
Underlying Combined Ratio111.5 %122.3 %110.8 %109.1 %94.5 %
Non-GAAP Measure Reconciliation
Combined Ratio110.8 %121.3 %113.8 %118.3 %94.2 %
Less:
Current Year Catastrophe Losses and LAE Ratio0.2 0.3 0.3 0.8 0.2 
Prior Years Non-catastrophe Losses and LAE Ratio(1.0)(1.3)2.7 8.4 (0.6)
Prior Years Catastrophe Losses and LAE Ratio0.1 — — — 0.1 
Underlying Combined Ratio111.5 %122.3 %110.8 %109.1 %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.
16

Kemper Corporation
Specialty Property & Casualty Insurance Segment
Commercial Automobile Insurance - Results of Operations and Selected Financial Information
(Dollars in Millions)
(Unaudited)
 Three Months Ended
 Mar 31, 2022Dec 31, 2021Sep 30, 2021Jun 30, 2021Mar 31, 2021
Results of Operations  
Net Premiums Written$138.9 $120.3 $121.6 $117.7 $110.5 
Earned Premiums$119.9 $114.2 $107.7 $100.7 $92.2 
Net Investment Income7.7 6.3 6.1 7.3 5.9 
Change in Value of Alternative Energy Partnership Investments(2.4)(1.4)(2.4)(0.8)(1.5)
Total Revenues125.2 119.1 111.4 107.2 96.6 
Incurred Losses and LAE related to:
Current Year:
Non-catastrophe Losses and LAE84.0 90.0 80.5 72.3 63.6 
Catastrophe Losses and LAE0.1 0.2 0.3 0.7 0.1 
Prior Years:
Non-catastrophe Losses and LAE5.2 4.1 — 5.3 3.0 
Catastrophe Losses and LAE— — — — — 
Total Incurred Losses and LAE89.3 94.3 80.8 78.3 66.7 
Insurance Expenses22.0 20.1 18.2 17.9 15.0 
Operating Income (Loss)13.9 4.7 12.4 11.0 14.9 
Income Tax Benefit (Expense)(2.2)(0.2)0.1 (1.4)(0.5)
Total Product Line Net Operating Income (Loss)$11.7 $4.5 $12.5 $9.6 $14.4 
Ratios Based On Earned Premiums
Current Year Non-catastrophe Losses and LAE Ratio70.1 %78.8 %74.7 %71.8 %68.9 %
Current Year Catastrophe Losses and LAE Ratio0.1 0.2 0.3 0.7 0.1 
Prior Years Non-catastrophe Losses and LAE Ratio4.3 3.6 — 5.3 3.3 
Prior Years Catastrophe Losses and LAE Ratio— — — — — 
Total Incurred Loss and LAE Ratio74.5 82.6 75.0 77.8 72.3 
Insurance Expense Ratio18.3 17.6 16.9 17.8 16.3 
Combined Ratio92.8 %100.2 %91.9 %95.6 %88.6 %
Underlying Combined Ratio 1
Current Year Non-catastrophe Losses and LAE Ratio70.1 %78.8 %74.7 %71.8 %68.9 %
Insurance Expense Ratio18.3 17.6 16.9 17.8 16.3 
Underlying Combined Ratio88.4 %96.4 %91.6 %89.6 %85.2 %
Non-GAAP Measure Reconciliation
Combined Ratio92.8 %100.2 %91.9 %95.6 %88.6 %
Less:
Current Year Catastrophe Losses and LAE Ratio0.1 0.2 0.3 0.7 0.1 
Prior Years Non-catastrophe Losses and LAE Ratio4.3 3.6 — 5.3 3.3 
Prior Years Catastrophe Losses and LAE Ratio— — — — — 
Underlying Combined Ratio88.4 %96.4 %91.6 %89.6 %85.2 %
1 Underlying Combined Ratio is a non-GAAP measure, which is computed as the difference between three operating ratios: the combined ratio, the effect of catastrophes (excluding development of prior-year catastrophes) on the combined ratio and the effect of prior-year reserve development at the reporting date (including development on prior-year catastrophes) on the combined ratio.
17

Kemper Corporation
Preferred Property & Casualty Insurance Segment
Results of Operations and Selected Financial Information
(Dollars in Millions)
(Unaudited)
 Three Months Ended
 Mar 31, 2022Dec 31, 2021Sep 30, 2021Jun 30, 2021Mar 31, 2021
Results of Operations  
Net Premiums Written$137.4 $153.2 $164.8 $169.6 $154.4 
Earned Premiums$155.6 $162.6 $163.7 $163.2 $162.2 
Net Investment Income12.5 17.1 16.1 19.5 15.9 
Change in Value of Alternative Energy Partnership Investments(3.9)(3.8)(6.4)(2.0)(4.1)
Total Revenues164.2 175.9 173.4 180.7 174.0 
Incurred Losses and LAE related to:
Current Year:
Non-catastrophe Losses and LAE112.2 122.4 115.6 116.2 96.2 
Catastrophe Losses and LAE11.4 7.5 23.4 24.2 24.0 
Prior Years:
Non-catastrophe Losses and LAE2.1 8.4 — 5.0 0.1 
Catastrophe Losses and LAE(3.2)(2.0)0.1 (3.4)(0.3)
Total Incurred Losses and LAE122.5 136.3 139.1 142.0 120.0 
Insurance Expenses51.2 51.6 51.7 52.1 51.0 
Operating Income (Loss)(9.5)(12.0)(17.4)(13.4)3.0 
Income Tax Benefit (Expense)3.4 4.6 11.0 5.1 6.6 
Segment Net Operating Income (Loss)$(6.1)$(7.4)$(6.4)$(8.3)$9.6 
Ratios Based On Earned Premiums
Current Year Non-catastrophe Losses and LAE Ratio72.2 %75.2 %70.6 %71.2 %59.3 %
Current Year Catastrophe Losses and LAE Ratio7.3 4.6 14.3 14.8 14.8 
Prior Years Non-catastrophe Losses and LAE Ratio1.3 5.2 — 3.1 0.1 
Prior Years Catastrophe Losses and LAE Ratio(2.1)(1.2)0.1 (2.1)(0.2)
Total Incurred Loss and LAE Ratio78.7 83.8 85.0 87.0 74.0 
Insurance Expense Ratio32.9 31.7 31.6 31.9 31.4 
Combined Ratio111.6 %115.5 %116.6 %118.9 %105.4 %
Underlying Combined Ratio 1
Current Year Non-catastrophe Losses and LAE Ratio72.2 %75.2 %70.6 %71.2 %59.3 %
Insurance Expense Ratio32.9 31.7 31.6 31.9 31.4 
Underlying Combined Ratio105.1 %106.9 %102.2 %103.1 %90.7 %
Non-GAAP Measure Reconciliation
Combined Ratio as Reported111.6 %115.5 %116.6 %118.9 %105.4 %
Less:
Current Year Catastrophe Losses and LAE Ratio7.3 4.6 14.3 14.8 14.8 
Prior Years Non-catastrophe Losses and LAE Ratio1.3 5.2 — 3.1 0.1 
Prior Years Catastrophe Losses and LAE Ratio(2.1)(1.2)0.1 (2.1)(0.2)
Underlying Combined Ratio105.1 %106.9 %102.2 %103.1 %90.7 %
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.

Kemper Corporation
18

Preferred Property & Casualty Insurance Segment
Results of Operations and Selected Financial Information (continued)
(Dollars in Millions)
(Unaudited)
Mar 31, 2022Dec 31, 2021Sep 30, 2021Jun 30, 2021Mar 31, 2021
Insurance Reserves:
Personal Automobile$307.9 $308.6 $290.0 $282.9 $275.9 
Homeowners93.1 95.4 108.5 110.7 107.6 
Other Personal30.6 29.2 30.1 31.0 30.7 
Insurance Reserves$431.6 $433.2 $428.6 $424.6 $414.2 
Insurance Reserves:
Loss and Allocated LAE Reserves:
Case and Allocated LAE$271.1 $272.5 $280.8 $282.3 $282.0 
Incurred but Not Reported131.8 131.9 120.4 116.1 105.6 
Total Loss Reserves402.9 404.4 401.2 398.4 387.6 
Unallocated LAE Reserves28.7 28.8 27.4 26.2 26.6 
Insurance Reserves$431.6 $433.2 $428.6 $424.6 $414.2 

19

Kemper Corporation
Preferred Property & Casualty Insurance Segment
Personal Automobile Insurance - Results of Operations and Selected Financial Information
(Dollars in Millions)
(Unaudited)
 Three Months Ended
 Mar 31, 2022Dec 31, 2021Sep 30, 2021Jun 30, 2021Mar 31, 2021
Results of Operations  
Net Premiums Written$84.2 $95.2 $99.9 $104.4 $100.4 
Earned Premiums$96.0 $101.4 $102.6 $103.5 $103.0 
Net Investment Income6.0 7.9 7.4 9.0 7.3 
Change in Value of Alternative Energy Partnership Investments(1.9)(1.7)(3.0)(0.9)(1.9)
Total Revenues100.1 107.6 107.0 111.6 108.4 
Incurred Losses and LAE related to:
Current Year:
Non-catastrophe Losses and LAE80.5 96.2 84.8 81.6 67.8 
Catastrophe Losses and LAE0.5 1.3 2.7 2.8 0.6 
Prior Years:
Non-catastrophe Losses and LAE1.5 7.3 0.1 3.6 1.2 
Catastrophe Losses and LAE0.1 (0.1)0.1 (0.2)0.1 
Total Incurred Losses and LAE82.6 104.7 87.7 87.8 69.7 
Insurance Expenses31.2 32.7 32.7 33.6 32.8 
Operating Income (Loss)(13.7)(29.8)(13.4)(9.8)5.9 
Income Tax Benefit (Expense)3.6 7.2 6.2 3.1 2.1 
Total Product Line Net Operating Income (Loss)$(10.1)$(22.6)$(7.2)$(6.7)$8.0 
Ratios Based On Earned Premiums
Current Year Non-catastrophe Losses and LAE Ratio83.8 %94.9 %82.7 %78.8 %65.8 %
Current Year Catastrophe Losses and LAE Ratio0.5 1.3 2.6 2.7 0.6 
Prior Years Non-catastrophe Losses and LAE Ratio1.6 7.2 0.1 3.5 1.2 
Prior Years Catastrophe Losses and LAE Ratio0.1 (0.1)0.1 (0.2)0.1 
Total Incurred Loss and LAE Ratio86.0 103.3 85.5 84.8 67.7 
Insurance Expense Ratio32.5 32.2 31.9 32.5 31.8 
Combined Ratio118.5 %135.5 %117.4 %117.3 %99.5 %
Underlying Combined Ratio 1
Current Year Non-catastrophe Losses and LAE Ratio83.8 %94.9 %82.7 %78.8 %65.8 %
Insurance Expense Ratio32.5 32.2 31.9 32.5 31.8 
Underlying Combined Ratio116.3 %127.1 %114.6 %111.3 %97.6 %
Non-GAAP Measure Reconciliation
Combined Ratio118.5 %135.5 %117.4 %117.3 %99.5 %
Less:
Current Year Catastrophe Losses and LAE Ratio0.5 1.3 2.6 2.7 0.6 
Prior Years Non-catastrophe Losses and LAE Ratio1.6 7.2 0.1 3.5 1.2 
Prior Years Catastrophe Losses and LAE Ratio0.1 (0.1)0.1 (0.2)0.1 
Underlying Combined Ratio116.3 %127.1 %114.6 %111.3 %97.6 %
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.
20

Kemper Corporation
Preferred Property & Casualty Insurance Segment
Homeowners and Other Personal Insurance - Results of Operations and Selected Financial Information
(Dollars in Millions)
(Unaudited)
 Three Months Ended
 Mar 31, 2022Dec 31, 2021Sep 30, 2021Jun 30, 2021Mar 31, 2021
Results of Operations  
Net Premiums Written$53.2 $58.0 $64.9 $65.2 $54.0 
Earned Premiums$59.6 $61.2 $61.1 $59.7 $59.2 
Net Investment Income6.5 9.2 8.7 10.5 8.6 
Change in Value of Alternative Energy Partnership Investments(2.0)(2.1)(3.4)(1.1)(2.2)
Total Revenues64.1 68.3 66.4 69.1 65.6 
Incurred Losses and LAE related to:
Current Year:
Non-catastrophe Losses and LAE31.7 26.2 30.8 34.6 28.4 
Catastrophe Losses and LAE10.9 6.2 20.7 21.4 23.4 
Prior Years:
Non-catastrophe Losses and LAE0.6 1.1 (0.1)1.4 (1.1)
Catastrophe Losses and LAE(3.3)(1.9)— (3.2)(0.4)
Total Incurred Losses and LAE39.9 31.6 51.4 54.2 50.3 
Insurance Expenses20.0 18.9 19.0 18.5 18.2 
Operating Income (Loss)4.2 17.8 (4.0)(3.6)(2.9)
Income Tax Benefit (Expense)(0.2)(2.6)4.8 2.0 4.5 
Total Product Line Net Operating Income (Loss)$4.0 $15.2 $0.8 $(1.6)$1.6 
Ratios Based On Earned Premiums
Current Year Non-catastrophe Losses and LAE Ratio53.1 %42.8 %50.4 %58.1 %48.1 %
Current Year Catastrophe Losses and LAE Ratio18.3 10.1 33.9 35.8 39.5 
Prior Years Non-catastrophe Losses and LAE Ratio1.0 1.8 (0.2)2.3 (1.9)
Prior Years Catastrophe Losses and LAE Ratio(5.5)(3.1)— (5.4)(0.7)
Total Incurred Loss and LAE Ratio66.9 51.6 84.1 90.8 85.0 
Insurance Expense Ratio33.6 30.9 31.1 31.0 30.7 
Combined Ratio100.5 %82.5 %115.2 %121.8 %115.7 %
Underlying Combined Ratio 1
Current Year Non-catastrophe Losses and LAE Ratio53.1 %42.8 %50.4 %58.1 %48.1 %
Insurance Expense Ratio33.6 30.9 31.1 31.0 30.7 
Underlying Combined Ratio86.7 %73.7 %81.5 %89.1 %78.8 %
Non-GAAP Measure Reconciliation
Combined Ratio100.5 %82.5 %115.2 %121.8 %115.7 %
Less:
Current Year Catastrophe Losses and LAE Ratio18.3 10.1 33.9 35.8 39.5 
Prior Years Non-catastrophe Losses and LAE Ratio1.0 1.8 (0.2)2.3 (1.9)
Prior Years Catastrophe Losses and LAE Ratio(5.5)(3.1)— (5.4)(0.7)
Underlying Combined Ratio86.7 %73.7 %81.5 %89.1 %78.8 %
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 Ended
 Mar 31, 2022Dec 31, 2021Sep 30, 2021Jun 30, 2021Mar 31, 2021
Results of Operations  
Net Premiums Written$45.5 $49.9 $56.1 $56.3 $46.1 
Earned Premiums$51.3 $52.7 $52.5 $51.3 $50.8 
Net Investment Income5.4 8.3 7.9 9.6 7.8 
Change in Value of Alternative Energy Partnership Investments(1.7)(1.9)(3.1)(1.0)(2.0)
Total Revenues55.0 59.1 57.3 59.9 56.6 
Incurred Losses and LAE related to:
Current Year:
Non-catastrophe Losses and LAE27.5 22.8 26.6 30.5 24.2 
Catastrophe Losses and LAE10.8 6.0 20.4 21.8 22.0 
Prior Years:
Non-catastrophe Losses and LAE(1.6)(0.1)(0.2)0.2 (2.5)
Catastrophe Losses and LAE(2.8)(2.1)0.1 (1.8)(0.1)
Total Incurred Losses and LAE33.9 26.6 46.9 50.7 43.6 
Insurance Expenses17.5 16.3 16.3 16.1 15.7 
Operating Income (Loss)3.6 16.2 (5.9)(6.9)(2.7)
Income Tax Benefit (Expense)(0.2)(2.4)4.8 2.6 4.1 
Total Product Line Net Operating Income (Loss)$3.4 $13.8 $(1.1)$(4.3)$1.4 
Ratios Based On Earned Premiums
Current Year Non-catastrophe Losses and LAE Ratio53.6 %43.3 %50.6 %59.4 %47.6 %
Current Year Catastrophe Losses and LAE Ratio21.1 11.4 38.9 42.5 43.3 
Prior Years Non-catastrophe Losses and LAE Ratio(3.1)(0.2)(0.4)0.4 (4.9)
Prior Years Catastrophe Losses and LAE Ratio(5.5)(4.0)0.2 (3.5)(0.2)
Total Incurred Loss and LAE Ratio66.1 50.5 89.3 98.8 85.8 
Insurance Expense Ratio34.1 30.9 31.0 31.4 30.9 
Combined Ratio100.2 %81.4 %120.3 %130.2 %116.7 %
Underlying Combined Ratio 1
Current Year Non-catastrophe Losses and LAE Ratio53.6 %43.3 %50.6 %59.4 %47.6 %
Insurance Expense Ratio34.1 30.9 31.0 31.4 30.9 
Underlying Combined Ratio87.7 %74.2 %81.6 %90.8 %78.5 %
Non-GAAP Measure Reconciliation
Combined Ratio100.2 %81.4 %120.3 %130.2 %116.7 %
Less:
Current Year Catastrophe Losses and LAE Ratio21.1 11.4 38.9 42.5 43.3 
Prior Years Non-catastrophe Losses and LAE Ratio(3.1)(0.2)(0.4)0.4 (4.9)
Prior Years Catastrophe Losses and LAE Ratio(5.5)(4.0)0.2 (3.5)(0.2)
Underlying Combined Ratio87.7 %74.2 %81.6 %90.8 %78.5 %
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.
22

Kemper Corporation
Preferred Property & Casualty Insurance Segment
Other Personal Insurance - Results of Operations and Selected Financial Information
(Dollars in Millions)
(Unaudited)
 Three Months Ended
 Mar 31, 2022Dec 31, 2021Sep 30, 2021Jun 30, 2021Mar 31, 2021
Results of Operations  
Net Premiums Written$7.7 $8.1 $8.8 $8.9 $7.9 
Earned Premiums$8.3 $8.5 $8.6 $8.4 $8.4 
Net Investment Income1.1 0.9 0.8 0.9 0.8 
Change in Value of Alternative Energy Partnership Investments(0.3)(0.2)(0.3)(0.1)(0.2)
Total Revenues9.1 9.2 9.1 9.2 9.0 
Incurred Losses and LAE related to:
Current Year:
Non-catastrophe Losses and LAE4.2 3.4 4.2 4.1 4.2 
Catastrophe Losses and LAE0.1 0.2 0.3 (0.4)1.4 
Prior Years:
Non-catastrophe Losses and LAE2.2 1.2 0.1 1.2 1.4 
Catastrophe Losses and LAE(0.5)0.2 (0.1)(1.4)(0.3)
Total Incurred Losses and LAE6.0 5.0 4.5 3.5 6.7 
Insurance Expenses2.5 2.6 2.7 2.4 2.5 
Operating Income (Loss)0.6 1.6 1.9 3.3 (0.2)
Income Tax Benefit (Expense)— (0.2)— (0.6)0.4 
Total Product Line Net Operating Income (Loss)$0.6 $1.4 $1.9 $2.7 $0.2 
Ratios Based On Earned Premiums
Current Year Non-catastrophe Losses and LAE Ratio50.6 %39.9 %48.8 %48.9 %50.0 %
Current Year Catastrophe Losses and LAE Ratio1.2 2.4 3.5 (4.8)16.7 
Prior Years Non-catastrophe Losses and LAE Ratio26.5 14.1 1.2 14.3 16.7 
Prior Years Catastrophe Losses and LAE Ratio(6.0)2.4 (1.2)(16.7)(3.6)
Total Incurred Loss and LAE Ratio72.3 58.8 52.3 41.7 79.8 
Insurance Expense Ratio30.1 30.6 31.4 28.6 29.8 
Combined Ratio102.4 %89.4 %83.7 %70.3 %109.6 %
Underlying Combined Ratio 1
Current Year Non-catastrophe Losses and LAE Ratio50.6 %39.9 %48.8 %48.9 %50.0 %
Insurance Expense Ratio30.1 30.6 31.4 28.6 29.8 
Underlying Combined Ratio80.7 %70.5 %80.2 %77.5 %79.8 %
Non-GAAP Measure Reconciliation
Combined Ratio102.4 %89.4 %83.7 %70.3 %109.6 %
Less:
Current Year Catastrophe Losses and LAE Ratio1.2 2.4 3.5 (4.8)16.7 
Prior Years Non-catastrophe Losses and LAE Ratio26.5 14.1 1.2 14.3 16.7 
Prior Years Catastrophe Losses and LAE Ratio(6.0)2.4 (1.2)(16.7)(3.6)
Underlying Combined Ratio80.7 %70.5 %80.2 %77.5 %79.8 %
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.
23


Kemper Corporation
Life & Health Insurance Segment
Results of Operations and Selected Financial Information
(Dollars in Millions)
(Unaudited)
 Three Months Ended
 Mar 31, 2022Dec 31, 2021Sep 30, 2021Jun 30, 2021Mar 31, 2021
Results of Operations 
Earned Premiums$161.4 $164.2 $164.1 $164.2 $161.0 
Net Investment Income49.4 50.8 48.4 52.4 51.1 
Change in Value of Alternative Energy Partnership Investments(4.4)(3.7)(6.1)(2.0)(4.0)
Other Income— (1.6)0.1 0.1 0.1 
Total Revenues206.4 209.7 206.5 214.7 208.2 
Policyholders’ Benefits and Incurred Losses and LAE120.1 116.2 119.5 115.3 118.7 
Insurance Expenses85.1 89.5 92.9 86.2 90.3 
Operating Income (Loss)1.2 4.0 (5.9)13.2 (0.8)
Income Tax Benefit (Expense)1.9 1.1 8.7 (0.2)8.1 
Segment Net Operating Income (Loss)$3.1 $5.1 $2.8 $13.0 $7.3 
 

Mar 31, 2022Dec 31,
2021		Sep 30, 2021Jun 30, 2021Mar 31, 2021
Insurance Reserves:
Future Policyholder Benefits$3,467.5 $3,454.1 $3,436.1 $3,466.4 $3,448.0 
Incurred Losses and LAE Reserves:
Life63.6 60.7 62.3 58.8 68.1 
Accident and Health25.2 26.1 25.7 26.4 25.5 
Property3.1 3.6 7.4 4.4 5.4 
Total Incurred Losses and LAE Reserves91.9 90.4 95.4 89.6 99.0 
Insurance Reserves$3,559.4 $3,544.5 $3,531.5 $3,556.0 $3,547.0 

 

24


Kemper Corporation
Life & Health Insurance Segment
Life Insurance - Results of Operations and Selected Financial Information
(Dollars in Millions)
(Unaudited)
 Three Months Ended
 Mar 31, 2022Dec 31, 2021Sep 30, 2021Jun 30, 2021Mar 31, 2021
Results of Operations 
Earned Premiums$101.3 $101.5 $101.5 $100.6 $98.1 
Net Investment Income47.9 49.3 47.0 50.9 49.6 
Change in Value of Alternative Energy Partnership Investments(4.0)(3.5)(5.8)(1.9)(3.8)
Other Income— (1.6)— — — 
Total Revenues145.2 145.7 142.7 149.6 143.9 
Policyholders’ Benefits and Incurred Losses and LAE90.6 88.2 87.3 81.9 87.9 
Insurance Expenses57.4 60.5 61.5 55.6 58.0 
Operating Income (Loss)(2.8)(3.0)(6.1)12.1 (2.0)
Income Tax Benefit (Expense)2.6 2.4 8.4 (0.1)8.0 
Total Product Line Operating Income (Loss)$(0.2)$(0.6)$2.3 $12.0 $6.0 


Kemper Corporation
Life & Health Insurance Segment
Accident & Health Insurance - Results of Operations and Selected Financial Information
(Dollars in Millions)
(Unaudited)
 Three Months Ended
 Mar 31, 2022Dec 31, 2021Sep 30, 2021Jun 30, 2021Mar 31, 2021
Results of Operations 
Earned Premiums$45.8 $47.6 $47.0 $47.9 $47.4 
Net Investment Income0.7 0.9 0.9 0.8 1.0 
Change in Value of Alternative Energy Partnership Investments(0.1)(0.1)(0.1)— (0.1)
Other Income— — 0.1 0.1 0.1 
Total Revenues46.4 48.4 47.9 48.8 48.4 
Policyholders’ Benefits and Incurred Losses and LAE23.5 21.9 22.9 26.8 24.5 
Insurance Expenses20.8 21.5 23.5 22.2 24.4 
Operating Income (Loss)2.1 5.0 1.5 (0.2)(0.5)
Income Tax Benefit (Expense)(0.4)(1.0)(0.2)0.1 0.2 
Total Product Line Net Operating Income (Loss)$1.7 $4.0 $1.3 $(0.1)$(0.3)
25

Kemper Corporation
Life & Health Insurance Segment
Property Insurance - Results of Operations and Selected Financial Information
(Dollars in Millions)
(Unaudited)
 Three Months Ended
 Mar 31, 2022Dec 31, 2021Sep 30, 2021Jun 30, 2021Mar 31, 2021
Results of Operations  
Earned Premiums$14.3 $15.1 $15.6 $15.7 $15.5 
Net Investment Income0.8 0.6 0.5 0.7 0.5 
Change in Value of Alternative Energy Partnership Investments(0.3)(0.1)(0.2)(0.1)(0.1)
Total Revenues14.8 15.6 15.9 16.3 15.9 
Incurred Losses and LAE related to:
Current Year:
Non-catastrophe Losses and LAE4.1 3.2 3.6 4.2 3.2 
Catastrophe Losses and LAE0.4 2.9 5.7 2.5 1.9 
Prior Years:
Non-catastrophe Losses and LAE0.6 — 0.4 0.1 0.7 
Catastrophe Losses and LAE0.9 — (0.4)(0.2)0.5 
Total Incurred Losses and LAE6.0 6.1 9.3 6.6 6.3 
Insurance Expenses6.9 7.5 7.9 8.4 7.9 
Operating Income (Loss)1.9 2.0 (1.3)1.3 1.7 
Income Tax Benefit (Expense)(0.3)(0.3)0.5 (0.2)(0.1)
Total Product Line Net Operating Income (Loss)$1.6 $1.7 $(0.8)$1.1 $1.6 
Ratios Based On Earned Premiums
Current Year Non-catastrophe Losses and LAE Ratio28.7 %21.2 %23.1 %26.8 %20.6 %
Current Year Catastrophe Losses and LAE Ratio2.8 19.2 36.5 15.9 12.3 
Prior Years Non-catastrophe Losses and LAE Ratio4.2 — 2.6 0.6 4.5 
Prior Years Catastrophe Losses and LAE Ratio6.3 — (2.6)(1.3)3.2 
Total Incurred Loss and LAE Ratio42.0 40.4 59.6 42.0 40.6 
Insurance Expense Ratio48.3 49.7 50.6 53.5 51.0 
Combined Ratio90.3 %90.1 %110.2 %95.5 %91.6 %
Underlying Combined Ratio 1
Current Year Non-catastrophe Losses and LAE Ratio28.7 %21.2 %23.1 %26.8 %20.6 %
Insurance Expense Ratio48.3 49.7 50.6 53.5 51.0 
Underlying Combined Ratio77.0 %70.9 %73.7 %80.3 %71.6 %
Non-GAAP Measure Reconciliation
Combined Ratio90.3 %90.1 %110.2 %95.5 %91.6 %
Less:
Current Year Catastrophe Losses and LAE Ratio2.8 19.2 36.5 15.9 12.3 
Prior Years Non-catastrophe Losses and LAE Ratio4.2 — 2.6 0.6 4.5 
Prior Years Catastrophe Losses and LAE Ratio6.3 — (2.6)(1.3)3.2 
Underlying Combined Ratio77.0 %70.9 %73.7 %80.3 %71.6 %
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.
26


Kemper Corporation
Expenses
(Dollars in Millions)
(Unaudited)
 Three Months Ended
 Mar 31, 2022Dec 31, 2021Sep 30, 2021Jun 30, 2021Mar 31, 2021
Insurance Expenses: 
Commissions$191.9 $192.3 $210.0 $220.1 $195.2 
General Expenses87.1 87.5 85.1 82.3 84.6 
Premium Taxes25.4 25.2 26.5 27.2 25.4 
Total Costs Incurred304.4 305.0 321.6 329.6 305.2 
Net Policy Acquisition Costs Deferred(2.5)(1.0)(23.8)(41.1)(22.4)
Amortization of Valuation of Business Acquired ("VOBA")2.1 5.1 13.5 25.5 0.9 
Insurance Expenses304.0 309.1 311.3 314.0 283.7 
Loss from Early Extinguishment of Debt3.7 — — — — 
Interest and Other Expenses:
Interest Expense12.7 10.6 10.7 11.2 11.1 
Other Expenses:
Acquisition Related Transaction, Integration and Other Costs4.7 9.2 8.0 10.4 16.3 
Other36.7 36.4 33.2 32.5 29.8 
Other Expenses41.4 45.6 41.2 42.9 46.1 
Interest and Other Expenses54.1 56.2 51.9 54.1 57.2 
Total Expenses$361.8 $365.3 $363.2 $368.1 $340.9 

27


Kemper Corporation
Details of Investment Performance
(Dollars in Millions)
(Unaudited)
 Three Months Ended
 Mar 31, 2022Dec 31, 2021Sep 30, 2021Jun 30, 2021Mar 31, 2021
Net Investment Income 
Interest on Fixed Income Securities$68.7 $70.6 $68.4 $69.7 $69.0 
Dividends on Equity Securities Excluding Alternative Investments1.5 6.1 2.9 4.8 2.1 
Alternative Investments:
Equity Method Limited Liability Investments13.3 5.8 12.0 16.4 22.5 
Limited Liability Investments Included in Equity Securities7.6 17.6 9.5 15.3 4.5 
Total Alternative Investments20.9 23.4 21.5 31.7 27.0 
Short-term Investments0.1 0.4 0.2 (0.8)1.2 
Loans to Policyholders5.5 5.4 5.4 5.4 5.5 
Real Estate2.2 2.2 2.3 2.4 2.4 
Other10.0 9.3 9.1 9.3 4.7 
Total Investment Income108.9 117.4 109.8 122.5 111.9 
Investment Expenses:
Real Estate2.5 2.9 2.6 2.1 2.1 
Other Investment Expenses6.4 6.1 5.3 6.5 6.7 
Total Investment Expenses8.9 9.0 7.9 8.6 8.8 
Net Investment Income$100.0 $108.4 $101.9 $113.9 $103.1 
Net Realized Gains (Losses) on Sales of Investments
Fixed Maturities:
Gains on Sales$0.4 $20.7 $10.3 $19.2 $13.2 
Losses on Sales(0.8)(0.4)(0.4)(0.2)(1.1)
Equity Securities:
Gains on Sales2.0 2.3 0.1 — 1.7 
Losses on Sales(0.1)(0.5)(0.2)— — 
Equity Method Limited Liability Investments:
Gains on Sales— — 0.4 — — 
Losses on Sales— — — — — 
Real Estate:
Gains on Sales— — (0.1)0.2 — 
Losses on Sales— (0.4)— — — 
Net Realized Gains (Losses) on Sales of Investments$1.5 $21.7 $10.1 $19.2 $13.8 
Net Impairment Losses Recognized in Earnings
Fixed Maturities$(8.9)$(3.1)$0.5 $(0.6)$(3.2)
Equity Securities— (0.1)(0.7)(2.6)(0.8)
Real Estate— — (0.4)— — 
Net Impairment Losses Recognized in Earnings$(8.9)$(3.2)$(0.6)$(3.2)$(4.0)
 
28


Kemper Corporation
Details of Invested Assets
(Dollars in Millions)
(Unaudited)
 Mar 31, 2022Dec 31, 2021Dec 31, 2020
 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
$630.4 6.3 %$637.4 6.1 %$585.3 5.6 %
States and Political Subdivisions
1,770.2 17.8 1,890.1 18.2 1,589.5 15.2 
Foreign Governments
5.0 0.1 5.5 0.1 5.2 — 
Corporate Securities:
Bonds and Notes
4,156.1 41.7 4,386.9 42.2 4,425.4 42.5 
Redeemable Preferred Stocks
6.8 0.1 7.4 0.1 7.5 0.1 
Collateralized Loan Obligations897.9 9.0 752.1 7.2 767.7 7.4 
Other Mortgage- and Asset-backed
317.5 3.2 307.5 3.0 225.3 2.2 
Total Fixed Maturities Reported at Fair Value
7,783.9 78.2 7,986.9 76.9 7,605.9 73.0 
Equity Securities Reported at Fair Value:
Preferred Stocks
49.4 0.5 51.8 0.5 59.1 0.6 
Common Stocks
2.7 — 21.8 0.2 10.8 0.1 
Other Equity Interests:
Exchange Traded Funds
201.6 2.0 432.0 4.2 496.6 4.8 
Limited Liability Companies and Limited Partnerships
317.8 3.2 325.0 3.1 292.0 2.8 
Total Equity Securities Reported at Fair Value
571.5 5.7 830.6 8.0 858.5 8.2 
Equity Securities Reported at Modified Cost:
Preferred Stocks
7.1 0.1 7.1 0.1 8.1 0.1 
Common Stocks
20.5 0.2 17.4 0.2 16.3 0.2 
Limited Liability Companies and Limited Partnerships
7.6 0.1 7.8 0.1 15.7 0.2 
Total Equity Securities Reported at Modified Cost
35.2 0.4 32.3 0.4 40.1 0.5 
Convertible Securities at Fair Value
46.1 0.5 46.4 0.4 39.9 0.4 
Equity Method Limited Liability Investments
230.0 2.3 241.9 2.3 204.0 2.0 
Alternative Energy Partnership Investments22.4 0.2 39.6 0.4 21.3 0.2 
Short-term Investments at Cost which Approximates Fair Value
243.8 2.4 284.1 2.7 875.4 8.4 
Other Investments:
Company Owned Life Insurance
556.4 5.6 448.1 4.3 327.4 3.1 
Loans to Policyholders at Unpaid Principal 284.7 2.9 286.2 2.8 297.9 2.9 
Real Estate at Depreciated Cost
93.3 0.9 94.0 0.9 98.7 0.9 
Mortgage Loans
99.8 1.0 96.8 0.9 54.6 0.5 
Other
1.0 — 0.5 — 0.4 — 
Total Other Investments
1,035.2 10.4 925.6 8.9 779.0 7.4 
Total Investments
$9,968.1 100.0 %$10,387.4 100.0 %$10,424.1 100.0 %
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)
 Mar 31, 2022Dec 31, 2021Dec 31, 2020
 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
$5,302.9 68.1 %$5,351.6 67.0 %$4,759.9 62.6 %
BBB
2,087.4 26.8 2,215.1 27.7 2,355.6 31.0 
BB, B
307.0 4.0 331.0 4.2 353.1 4.6 
CCC or Lower
86.6 1.1 89.2 1.1 137.3 1.8 
Total Investments in Fixed Maturities
$7,783.9 100.0 %$7,986.9 100.0 %$7,605.9 100.0 %
Duration (in Years)
Total Investments in Fixed Maturities
8.1 8.5 7.8 
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)
 Mar 31, 2022Dec 31, 2021Dec 31, 2020
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
$2,135.8 21.4 %$1,996.7 19.2 %$1,916.3 18.4 %
Manufacturing
1,445.9 14.5 1,571.0 15.1 1,633.5 15.7 
Transportation, Communication and Utilities
769.1 7.7 815.8 7.9 825.5 7.9 
Services
597.7 6.0 617.5 5.9 581.3 5.6 
Mining
239.0 2.4 254.3 2.4 285.7 2.7 
Retail Trade
162.4 1.6 171.4 1.7 172.6 1.7 
Construction20.4 0.2 13.1 0.1 — — 
Wholesale Trade
0.2 — — — — — 
Other
7.9 0.1 14.1 0.1 11.0 0.1 
Total Fair Value of Non-governmental Fixed Maturities
$5,378.4 53.9 %$5,453.9 52.4 %$5,425.9 52.1 %
 
Mar 31, 2022
Ten Largest Investment Exposures 1
Fair
Value		Percent
of Total
Investments
Fixed Maturities:
States including their Political Subdivisions:
Texas$136.6 1.4 %
California103.7 1.0 
New York91.4 0.9 
Georgia89.8 0.9 
Michigan76.6 0.8 
Florida70.8 0.7 
Louisiana69.7 0.7 
Colorado65.2 0.7 
Equity Securities at Fair Value—Other Equity Interests:
Vanguard Total World Stock ETF112.1 1.1 
iShares® Core MSCI Total International Stock ETF75.6 0.8 
Total$891.5 9.0 %
1Excluding Investments in U.S. Government and Government Agencies and Authorities at March 31, 2022.

 

31


Kemper Corporation
Municipal Bond Securities
(Dollars in Millions)
(Unaudited)
 Mar 31, 2022
State
General
Obligation		Political
Subdivision
General
Obligation		RevenueTotal Fair
Value
Percent
of Total
Muni Bond1
Percent
of Total
Investments1
Texas$22.2 $108.3 $6.1 $136.6 7.7 %1.4 %
California12.3 84.7 6.8 103.8 5.9 1.0 
New York8.3 77.4 5.8 91.5 5.2 0.9 
Georgia8.0 76.9 4.9 89.8 5.1 0.9 
Michigan— 62.5 14.0 76.5 4.3 0.8 
Florida— 70.8 — 70.8 4.0 0.7 
Louisiana5.5 29.3 35.0 69.8 3.9 0.7 
Colorado— 65.2 — 65.2 3.7 0.7 
Pennsylvania3.3 53.6 5.6 62.5 3.5 0.6 
Virginia15.5 35.6 6.5 57.6 3.3 0.6 
Washington1.5 37.7 17.1 56.3 3.2 0.6 
Oregon2.6 23.7 29.7 56.0 3.2 0.6 
Massachusetts1.4 48.2 5.9 55.5 3.1 0.6 
Maryland7.8 38.1 2.0 47.9 2.7 0.5 
Illinois0.6 41.6 — 42.2 2.4 0.4 
Minnesota2.2 38.7 — 40.9 2.3 0.4 
Ohio— 34.8 5.8 40.6 2.3 0.4 
Tennessee10.7 26.4 3.3 40.4 2.3 0.4 
Indiana— 36.4 — 36.4 2.1 0.4 
New Mexico— 34.7 — 34.7 2.0 0.3 
Utah— 34.1 — 34.1 1.9 0.3 
Connecticut— 17.3 14.7 32.0 1.8 0.3 
Missouri1.2 29.5 — 30.7 1.7 0.3 
District of Columbia— 21.8 6.5 28.3 1.6 0.3 
Rhode Island1.7 22.8 — 24.5 1.4 0.2 
Mississippi— 10.2 13.6 23.8 1.3 0.2 
Arizona0.8 22.3 — 23.1 1.3 0.2 
North Carolina1.9 21.1 — 23.0 1.3 0.2 
Hawaii4.1 3.6 15.1 22.8 1.3 0.2 
Nebraska7.3 11.1 — 18.4 1.0 0.2 
Arkansas— — 18.3 18.3 1.0 0.2 
South Carolina— 18.0 — 18.0 1.0 0.2 
New Hampshire0.5 16.8 — 17.3 1.0 0.2 
Iowa— 16.6 — 16.6 0.9 0.2 
Kentucky— 16.0 — 16.0 0.9 0.2 
Alabama— 15.8 — 15.8 0.9 0.2 
North Dakota— 14.6 — 14.6 0.8 0.1 
Oklahoma— 14.3 — 14.3 0.8 0.1 
South Dakota— 11.7 — 11.7 0.7 0.1 
All Other States10.2 79.3 2.7 92.2 5.2 0.9 
Total$129.6 $1,421.5 $219.4 $1,770.5 100.0 %17.8 %
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 ClassMar 31,
2022		Mar 31,
2022		Dec 31, 2021
Reported as Equity Method Limited Liability Investments:
Mezzanine Debt$40.2 $121.0 $120.0 
Senior Debt49.0 25.8 27.5 
Distressed Debt— 18.9 21.7 
Secondary Transactions2.1 12.9 11.7 
Leveraged Buyout0.9 9.2 8.7 
Growth Equity— 1.3 0.7 
Real Estate— 29.7 29.9 
Hedge Fund— 0.5 8.7 
Other— 10.7 13.0 
Total Equity Method Limited Liability Investments92.2 230.0 241.9 
Alternative Energy Partnership Investments— 22.4 39.6 
Reported as Other Equity Interests at Fair Value:
Mezzanine Debt52.5 131.8 129.3 
Senior Debt15.7 30.2 29.9 
Distressed Debt18.6 45.2 44.9 
Secondary Transactions5.6 3.7 4.0 
Hedge Funds— 68.1 82.7 
Leveraged Buyout8.3 34.8 32.2 
Growth Equity0.5 4.0 2.0 
Total Reported as Other Equity Interests at Fair Value101.2 317.8 325.0 
Reported as Other Equity Interests at Modified Cost:
Other— 7.6 7.7 
Total Reported as Other Equity Interests at Modified Cost— 7.6 7.7 
Total Investments in Limited Liability Companies and Limited Partnerships$193.4 $577.8 $614.2 

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) Losses 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) losses 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) losses 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) Losses 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) losses 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) losses 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 three months ended March 31, 2022 or 2021.

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 Ended
Dollars in Millions (Unaudited)Mar 31, 2022Dec 31, 2021Sep 30, 2021Jun 30, 2021Mar 31, 2021
Net Income (Loss)$(94.8)$(105.8)$(75.3)$(62.6)$123.2 
Less Net Income (Loss) From:
Income (Loss) from Change in Fair Value of Equity and Convertible Securities(22.3)17.5 (0.5)32.3 41.2 
Net Realized Gains (Losses) on Sales of Investments1.2 17.2 7.9 15.2 10.9 
Impairment Losses(7.0)(2.5)(0.5)(2.5)(3.2)
Acquisition Related Transaction, Integration and Other Costs(3.7)(7.2)(6.4)(8.2)(12.9)
Debt Extinguishment, Pension and Other Charges(2.9)— — — — 
Adjusted Consolidated Net Operating Income (Loss)$(60.1)$(130.8)$(75.8)$(99.4)$87.2 
Adjusted Consolidated Net Operating Income Per Unrestricted Share is a non-GAAP financial measure. It is computed by dividing Adjusted Consolidated Net Operating Income by the weighted average unrestricted shares outstanding. The most directly comparable GAAP financial measure is Net Income (Loss) Per Unrestricted Share ‐ basic. A reconciliation of Net Income (Loss) Per Unrestricted Share-basic to Adjusted Consolidated Net Operating Income (Loss) Per Unrestricted Share-basic is presented below:
 Three Months Ended
(Unaudited)Mar 31, 2022Dec 31, 2021Sep 30, 2021Jun 30, 2021Mar 31, 2021
Net Income (Loss) Per Unrestricted Share$(1.49)$(1.66)$(1.18)$(0.97)$1.88 
Less Net Income (Loss) Per Unrestricted Share From:
Income (Loss) from Change in Fair Value of Equity and Convertible Securities(0.35)0.27 (0.01)0.50 0.63 
Net Realized Gains (Losses) on Sales of Investments0.02 0.27 0.13 0.24 0.17 
Impairment Losses(0.11)(0.04)(0.01)(0.04)(0.05)
Acquisition Related Transaction and Integration Costs(0.06)(0.11)(0.10)(0.13)(0.20)
Debt Extinguishment, Pension and Other Charges(0.05)— — — — 
Adjusted Consolidated Net Operating Income (Loss) Per Unrestricted Share$(0.94)$(2.05)$(1.19)$(1.54)$1.33 

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 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 Ended
 Mar 31, 2022Dec 31, 2021Sep 30, 2021Jun 30, 2021Mar 31, 2021
Earned Premiums
Kemper - GAAP As Reported
$1,338.6 $1,359.1 $1,356.1 $1,337.7 $1,200.8 
AAC - Prior to Acquisition— — — — 87.9 
As Adjusted for Acquisitions1
$1,338.6 $1,359.1 $1,356.1 $1,337.7 $1,288.7 
Adjusted Consolidated Net Operating Income (Loss)
Kemper
$(60.1)$(130.8)$(75.8)$(99.4)$87.2 
AAC - Prior to Acquisition— — — — 12.3 
Less: Impact of Purchase Accounting
(3.5)(4.5)(6.7)(10.1)(1.8)
As Adjusted for Acquisitions1
$(56.6)$(126.3)$(69.1)$(89.3)$101.3 
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 Ended
Mar 31, 2022Dec 31, 2021Sep 30, 2021Jun 30, 2021Mar 31, 2021
Earned Premiums
Kemper Specialty P&C - GAAP As Reported$1,021.6 $1,032.3 $1,028.3 $1,010.3 $877.6 
AAC - Prior to Acquisition— — — — 87.9 
As Adjusted for Acquisitions1
$1,021.6 $1,032.3 $1,028.3 $1,010.3 $965.5 
Current Year Non-CAT Losses and LAE
Kemper Specialty P&C - GAAP As Reported$911.7 $1,028.5 $924.4 $877.4 $650.0 
AAC - Prior to Acquisition— — — — 62.0 
Less: Impact of Purchase Accounting
Amortization of Fair Value Adjustment to Unpaid Loss and LAE0.3 0.2 0.3 0.3 0.4 
As Adjusted for Acquisitions1
$911.4 $1,028.3 $924.1 $877.1 $711.6 
Insurance Expenses
Kemper Specialty P&C - GAAP As Reported$199.3 $204.4 $194.2 $205.6 $170.3 
AAC - Prior to Acquisition— — — — 13.1 
Less: Impact of Purchase Accounting
Amortization of VOBA1.4 4.5 12.8 24.8 0.3 
Amortization of Estimated Legacy AAC Deferred Policy Acquisition Costs ("DPAC")(0.8)(2.8)(8.4)(16.0)— 
Amortization of VOBA, Net of Legacy DPAC0.6 1.7 4.4 8.8 0.3 
Amortization of Finite Life Intangible Assets Acquired3.1 3.1 3.1 3.0 0.9 
Other1.0 1.1 1.1 1.1 1.1 
Total Purchase Accounting Adjustments4.7 5.9 8.6 12.9 2.3 
As Adjusted for Acquisitions1
$194.6 $198.5 $185.6 $192.7 $181.1 
Underlying Combined Ratio1
Kemper Specialty P&C Segment - GAAP As Reported108.7 %119.4 %108.9 %107.3 %93.5 %
As Adjusted for Acquisitions1
108.3 %118.8 %107.9 %105.9 %92.5 %
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 Ended
Mar 31, 2022Dec 31, 2021Sep 30, 2021Jun 30, 2021Mar 31, 2021
Earned Premiums
Kemper Specialty Personal Automobile Insurance - GAAP As Reported$901.7 $918.1 $920.6 $909.6 $785.4 
AAC - Prior to Acquisition— — — — 87.9 
As Adjusted for Acquisitions1
$901.7 $918.1 $920.6 $909.6 $873.3 
Current Year Non-CAT Losses and LAE
Kemper Specialty Personal Automobile Insurance - GAAP As Reported$827.7 $938.5 $843.9 $805.1 $586.4 
AAC - Prior to Acquisition— — — — 62.0 
Less: Impact of Purchase Accounting
Amortization of Fair Value Adjustment to Unpaid Loss and LAE0.3 0.2 0.3 0.2 0.3 
As Adjusted for Acquisitions1
$827.4 $938.3 $843.6 $804.9 $648.1 
Insurance Expenses
Kemper Specialty Personal Automobile Insurance - GAAP As Reported$177.3 $184.3 $176.0 $187.7 $155.3 
AAC - Prior to Acquisition— — — — 13.1 
Less: Impact of Purchase Accounting
Amortization of VOBA1.4 4.4 12.8 24.7 0.2 
Amortization of Estimated Legacy AAC Deferred Policy Acquisition Costs ("DPAC")(0.8)(2.8)(8.4)(16.0)— 
Amortization of VOBA, Net of Legacy DPAC0.6 1.6 4.4 8.7 0.2 
Amortization of Finite Life Intangible Assets Acquired2.9 3.0 2.9 2.8 0.7 
Other0.8 0.9 0.8 0.9 0.9 
Total Purchase Accounting Adjustments4.3 5.5 8.1 12.4 1.8 
As Adjusted for Acquisitions1
$173.0 $178.8 $167.9 $175.3 $166.6 
Underlying Combined Ratio1
Kemper Specialty Personal Automobile Insurance - GAAP As Reported111.5 %122.3 %110.8 %109.1 %94.5 %
As Adjusted for Acquisitions1
110.9 %121.7 %109.9 %107.8 %93.3 %
1 As Adjusted for Acquisitions is a non-GAAP financial measure, which is computed by excluding the impact of purchase accounting. See page 36.

39