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Investor Supplement
Fourth Quarter 2025

Caution Regarding Forward-Looking Statements

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

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

Non-GAAP Financial Measures
This document contains non-GAAP financial measures to analyze the Company’s operating performance for the periods presented. Because the Company’s calculation of these measures may differ from similar measures used by other companies, investors should be careful when comparing the Company’s non-GAAP financial measures to those of other companies. For detailed disclosures on non-GAAP financial measures please refer to the “Definitions of Non-GAAP Financial Measures” on pages 29-32.





Kemper Corporation
Investor Supplement
Fourth Quarter 2025
Table of Contents
 
 Page
Consolidated Financial Highlights3-4
Consolidated Statements of (Loss) Income
5
Consolidated Balance Sheets6-7
Consolidated Statements of Cash Flows
8-9
Capital Metrics
10
Debt Outstanding, Federal Home Loan Bank Advances and Ratings
11
Adjusted Segment Summary Results:
Revenues
12
Adjusted Operating (Loss) Income
13
Adjusted Net Operating Income
13
Catastrophe Frequency and Severity
14-15
Specialty Property & Casualty Insurance Segment - Results of Operations and Selected Financial Information
16-17
Personal Automobile Insurance
18
Commercial Automobile Insurance
19
Life Insurance Segment - Results of Operations and Selected Financial Information
20-21
Expenses
22
Details of Investment Performance
23
Details of Invested Assets
24-25
Investment Concentration
26
Municipal Bond Securities
27
Investments in Limited Liability Companies and Limited Partnerships
28
Definitions of Non-GAAP Financial Measures
29-32














Kemper Corporation
Consolidated Financial Highlights
(Dollars in Millions, Except Per Share Amounts)
(Unaudited)
 Three Months EndedYear Ended
Dec 31,
2025		Sep 30, 2025Jun 30, 2025Mar 31, 2025Dec 31, 2024Sep 30, 2024Jun 30, 2024Mar 31, 2024Dec 31,
2025		Dec 31,
2024
For Period Ended
Earned Premiums
$1,044.3 $1,133.3 $1,130.8 $1,087.9 $1,081.8 $1,068.5 $1,033.7 $1,031.9 $4,396.3 $4,215.9 
Net Investment Income
103.1 104.8 95.9 101.2 103.0 111.1 93.0 100.4 405.0 407.5 
Other (Loss) Income(10.6)2.9 3.1 2.6 2.6 2.7 3.0 2.2 (2.0)10.5 
Change in Fair Value of Equity and Convertible Securities
(1.8)(2.1)(0.5)0.1 (2.6)(2.3)(1.2)3.4 (4.3)(2.7)
Net Realized Investment Gains (Losses)(3.6)0.8 (3.7)1.2 2.0 (1.1)1.4 5.1 (5.3)7.4 
Investment and Other Income87.1 106.4 94.8 105.1 105.0 110.4 96.2 111.1 393.4 422.7 
Total Revenues
$1,131.4 $1,239.7 $1,225.6 $1,193.0 $1,186.8 $1,178.9 $1,129.9 $1,143.0 $4,789.7 $4,638.6 
Net (Loss) Income
$(10.0)$(24.2)$69.8 $97.0 $95.7 $72.2 $74.4 $70.2 $132.6 $312.5 
Less: Net Loss attributable to Noncontrolling Interest(2.0)(3.2)(2.8)(2.7)(1.7)(1.5)(1.0)(1.1)(10.7)(5.3)
Net (Loss) Income attributable to Kemper Corporation
$(8.0)$(21.0)$72.6 $99.7 $97.4 $73.7 $75.4 $71.3 $143.3 $317.8 
Adjusted Consolidated Net Operating Income1
$14.6 $20.4 $84.1 $106.4 $115.1 $105.0 $91.7 $69.7 $225.5 $381.5 
Per Unrestricted Common Share Amounts:
Basic:
Net (Loss) Income attributable to Kemper Corporation per Unrestricted Share:
$(0.13)$(0.34)$1.13 $1.56 $1.52 $1.15 $1.17 $1.11 $2.31 $4.95 
Adjusted Consolidated Net Operating Income1
$0.25 $0.33 $1.31 $1.67 $1.81 $1.63 $1.43 $1.08 $3.64 $5.95 
Diluted:
Net (Loss) Income attributable to Kemper Corporation per Unrestricted Share1:
$(0.13)$(0.34)$1.12 $1.54 $1.51 $1.14 $1.16 $1.10 $2.29 $4.91 
Adjusted Consolidated Net Operating Income1
$0.25 $0.33 $1.30 $1.65 $1.78 $1.62 $1.42 $1.07 $3.60 $5.89 
Dividends Paid to Shareholders Per Share
$0.32 $0.32 $0.32 $0.32 $0.31 $0.31 $0.31 $0.31 $1.28 $1.24 
Return on Shareholders' Equity(1.2)%(3.0)%9.9 %14.0 %14.0 %10.8 %11.5 %11.2 %5.1 %11.9 %
Return on Adjusted Shareholders' Equity1
(1.9)%(4.6)%14.9 %21.0 %21.4 %16.7 %17.6 %17.2 %7.8 %18.3 %
1Non-GAAP Financial Measure. See pages 29-32 for definition.
3

Kemper Corporation
Consolidated Financial Highlights
(Dollars in Millions, Except Per Share Amounts)
(Unaudited)
As of
Dec 31,
2025		Sep 30, 2025Jun 30, 2025Mar 31, 2025Dec 31, 2024Sep 30, 2024Jun 30, 2024Mar 31, 2024
At Period End
Total Assets
$12,472.7$12,443.4$12,601.1$12,467.3$12,630.4$12,873.0$12,544.3$12,625.9
Insurance Reserves
$6,198.3$6,123.6$5,900.0$5,867.1$5,811.6$6,012.7$5,769.2$5,891.5
Debt
$943.5 $943.1 $942.6 $942.1 $1,391.6$1,390.9$1,390.4$1,389.8
Kemper Corporation Shareholders’ Equity$2,681.4$2,732.1$2,953.4$2,917.6$2,788.4$2,773.3$2,671.2$2,589.8
Book Value Per Share2
$45.71$45.38$46.45$45.60$43.68$43.30$41.46$40.24
Adjusted Book Value Per Share1,2
$28.06$28.55$31.01$30.31$29.04$27.88$27.14$26.19
Debt to Total Capitalization2
26.0 %25.7 %24.2 %24.4 %33.3 %33.4 %34.2 %34.9 %
1Non-GAAP Financial Measure. See pages 29-32 for definition.
2See Capital Metrics on page 10 for detail calculations.
4

Kemper Corporation
Consolidated Statements of (Loss) Income
(Dollars in Millions, Except Per Share Amounts)
(Unaudited)
 Three Months EndedYear Ended
 Dec 31,
2025		Sep 30, 2025Jun 30, 2025Mar 31, 2025Dec 31, 2024Sep 30, 2024Jun 30, 2024Mar 31, 2024Dec 31,
2025		Dec 31,
2024
Revenues:
Earned Premiums$1,044.3 $1,133.3 $1,130.8 $1,087.9 $1,081.8 $1,068.5 $1,033.7 $1,031.9 $4,396.3 $4,215.9 
Net Investment Income103.1 104.8 95.9 101.2 103.0 111.1 93.0 100.4 405.0 407.5 
Other (Loss) Income(10.6)2.9 3.1 2.6 2.6 2.7 3.0 2.2 (2.0)10.5 
Change in Fair Value of Equity and Convertible Securities
(1.8)(2.1)(0.5)0.1 (2.6)(2.3)(1.2)3.4 (4.3)(2.7)
Net Realized Investment Gains (Losses)0.8 3.9 (0.1)0.9 4.0 1.1 1.5 6.6 5.5 13.2 
Impairment Losses(4.4)(3.1)(3.6)0.3 (2.0)(2.2)(0.1)(1.5)(10.8)(5.8)
Total Revenues1,131.4 1,239.7 1,225.6 1,193.0 1,186.8 1,178.9 1,129.9 1,143.0 4,789.7 4,638.6 
Expenses:
Policyholders’ Benefits and Incurred Losses and Loss Adjustment Expenses854.5 924.6 829.1 767.3 743.4 769.3 744.4 756.0 3,375.5 3,013.1 
Insurance and Other Expenses281.4 339.1 300.0 294.5 309.5 304.5 279.7 286.4 1,215.0 1,180.1 
Interest Expense9.0 9.1 9.0 11.4 14.6 14.4 13.9 14.0 38.5 56.9 
Total Expenses1,144.9 1,272.8 1,138.1 1,073.2 1,067.5 1,088.2 1,038.0 1,056.4 4,629.0 4,250.1 
(Loss) Income before Income Taxes(13.5)(33.1)87.5 119.8 119.3 90.7 91.9 86.6 160.7 388.5 
Income Tax (Benefit) Expense(3.5)(8.9)17.7 22.8 23.6 18.5 17.5 16.4 28.1 76.0 
Net (Loss) Income(10.0)(24.2)69.8 97.0 95.7 72.2 74.4 70.2 132.6 312.5 
Less: Net Loss attributable to Noncontrolling Interest(2.0)(3.2)(2.8)(2.7)(1.7)(1.5)(1.0)(1.1)(10.7)(5.3)
Net (Loss) Income attributable to Kemper Corporation
$(8.0)$(21.0)$72.6 $99.7 $97.4 $73.7 $75.4 $71.3 $143.3 $317.8 
Net (Loss) Income attributable to Kemper Corporation per Unrestricted Share:
Basic$(0.13)$(0.34)$1.13 $1.56 $1.52 $1.15 $1.17 $1.11 $2.31 $4.95 
Diluted$(0.13)$(0.34)$1.12 $1.54 $1.51 $1.14 $1.16 $1.10 $2.29 $4.91 
Dividends Paid to Shareholders Per Share$0.32 $0.32 $0.32 $0.32 $0.31 $0.31 $0.31 $0.31 $1.28 $1.24 
Weighted Average Unrestricted Common Shares Outstanding (in Millions)58.801 61.477 63.939 63.887 63.859 64.217 64.395 64.255 62.011 64.180 
Weighted-Average Unrestricted Shares and Equivalent Shares Outstanding Assuming Dilution (in Millions)58.801 61.477 64.600 64.653 64.632 64.898 64.892 64.773 62.606 64.776 
 
5

Kemper Corporation
Consolidated Balance Sheets
(Dollars in Millions)
 (Unaudited)
Dec 31,
2025		Sep 30, 2025Jun 30, 2025Mar 31, 2025Dec 31, 2024Sep 30, 2024Jun 30, 2024Mar 31, 2024
Assets:
Investments:
Fixed Maturities at Fair Value$6,743.3 $6,620.3 $6,669.1 $6,558.6 $6,409.6 $6,872.0 $6,674.7 $6,771.6 
Equity Securities at Fair Value306.4 302.0 284.1 232.3 218.5 228.3 226.6 230.1 
Equity Method Limited Liability Investments176.0 174.9 176.2 185.1 186.3 202.6 205.1 215.2 
Short-term Investments at Cost which Approximates Fair Value313.5 371.2 407.6 545.3 1,037.1 696.9 539.1 520.7 
Company-Owned Life Insurance
579.2 567.9 557.1 546.5 539.2 533.0 523.3 515.7 
Loans to Policyholders
279.9 279.3 278.6 279.8 280.7 280.3 279.8 280.5 
Other Investments271.3 287.0 272.8 244.5 217.1 223.9 219.7 230.8 
Total Investments8,669.6 8,602.6 8,645.5 8,592.1 8,888.5 9,037.0 8,668.3 8,764.6 
Cash124.3 107.4 175.5 115.4 64.4 56.9 107.4 125.9 
Receivables from Policyholders965.2 1,022.9 1,038.7 1,052.7 977.9 982.8 988.0 953.1 
Other Receivables184.7 185.0 192.9 189.2 185.7 202.1 191.5 195.4 
Deferred Policy Acquisition Costs655.4 658.9 658.2 649.7 628.9 621.3 608.0 595.3 
Goodwill1,250.7 1,250.7 1,250.7 1,250.7 1,250.7 1,250.7 1,250.7 1,250.7 
Current Income Tax Assets40.7 57.4 57.5 40.9 63.4 68.8 56.5 52.6 
Deferred Income Tax Assets96.9 66.3 67.6 73.4 93.3 150.5 185.0 199.1 
Other Assets410.7 422.2 448.5 442.2 436.1 468.9 476.4 479.1 
Assets of Consolidated Variable Interest Entity:
Fixed Maturities at Fair Value42.1 36.3 33.3 13.7 1.7 1.7 1.6 1.7 
Short-term Investments at Cost which Approximates Fair Value14.4 17.5 14.9 31.6 28.0 24.0 4.8 4.0 
Cash1.7 — 1.5 — 1.0 — — 0.8 
Receivables from Policyholders10.4 10.7 11.6 11.9 8.2 6.6 5.2 2.7 
Other Receivables0.4 0.4 0.2 0.1 — — — — 
Deferred Policy Acquisition Costs1.3 1.4 1.6 1.5 1.1 0.7 0.3 0.6 
Deferred Income Tax Assets4.2 3.7 2.9 2.2 1.5 1.0 0.6 — 
Other Assets— — — — — — — 0.3 
Total Assets$12,472.7 $12,443.4 $12,601.1 $12,467.3 $12,630.4 $12,873.0 $12,544.3 $12,625.9 
6

Kemper Corporation
Consolidated Balance Sheets
(Dollars in Millions)
 (Unaudited)
Dec 31,
2025		Sep 30, 2025Jun 30, 2025Mar 31, 2025Dec 31, 2024Sep 30, 2024Jun 30, 2024Mar 31, 2024
Liabilities and Shareholders’ Equity:
Insurance Reserves:
Life and Health$3,287.5 $3,317.6 $3,235.3 $3,229.5 $3,199.7 $3,425.8 $3,202.0 $3,294.3 
Property and Casualty2,910.8 2,806.0 2,664.7 2,637.6 2,611.9 2,586.9 2,567.2 2,597.2 
Total Insurance Reserves6,198.3 6,123.6 5,900.0 5,867.1 5,811.6 6,012.7 5,769.2 5,891.5 
Unearned Premiums1,233.1 1,310.6 1,345.0 1,361.6 1,264.1 1,290.3 1,301.5 1,274.1 
Policyholder Obligations608.0 620.0 641.3 632.0 637.7 618.3 644.4 660.9 
Deferred Income Tax Liabilities14.8 13.5 14.7 6.6 14.8 67.1 68.3 61.7 
Accrued Expenses and Other Liabilities762.6 669.5 775.4 715.5 705.2 709.5 693.8 754.8 
Long-term Debt, Current, at Amortized Cost— — — — 449.9 449.9 449.8 449.7 
Long-term Debt, Non-Current, at Amortized Cost943.5 943.1 942.6 942.1 941.7 941.0 940.6 940.1 
Liabilities of Consolidated Variable Interest Entity:
Insurance Reserves29.4 26.3 20.9 14.7 9.4 5.3 2.4 0.7 
Unearned Premiums12.1 13.6 14.5 14.5 11.2 8.1 4.9 3.1 
Accrued Expenses and Other Liabilities1.5 1.6 1.2 1.7 0.5 0.4 0.1 0.6 
Total Liabilities9,803.3 9,721.8 9,655.6 9,555.8 9,846.1 10,102.6 9,875.0 10,037.2 
Kemper Corporation Shareholders’ Equity:
Common Stock5.9 6.0 6.4 6.4 6.4 6.4 6.4 6.4 
Paid-in Capital1,723.9 1,737.2 1,859.3 1,863.6 1,854.9 1,858.0 1,860.9 1,852.3 
Retained Earnings1,157.8 1,216.0 1,345.4 1,308.9 1,231.6 1,161.4 1,121.2 1,066.1 
Accumulated Other Comprehensive Loss(206.2)(227.1)(257.7)(261.3)(304.5)(252.5)(317.3)(335.0)
Total Kemper Corporation Shareholders’ Equity2,681.4 2,732.1 2,953.4 2,917.6 2,788.4 2,773.3 2,671.2 2,589.8 
Noncontrolling Interest(12.0)(10.5)(7.9)(6.1)(4.1)(2.9)(1.9)(1.1)
Total Shareholders’ Equity$2,669.4 $2,721.6 $2,945.5 $2,911.5 $2,784.3 $2,770.4 $2,669.3 $2,588.7 
Total Liabilities and Shareholders’ Equity$12,472.7 $12,443.4 $12,601.1 $12,467.3 $12,630.4 $12,873.0 $12,544.3 $12,625.9 

7

Kemper Corporation
Consolidated Statements of Cash Flows
(Dollars in Millions)
 (Unaudited)
 Year Ended
 Dec 31,
2025		Dec 31,
2024
Cash Flows from Operating Activities:
Net Income (Loss)
$132.6 $312.5 
Adjustments to Reconcile Net Income (Loss) to Net Cash Provided by (Used in) Operating Activities
Net Realized Investment (Gains) Losses(5.5)(13.2)
Impairment Losses10.8 5.8 
Depreciation and Amortization of Property, Equipment, Software and Intangible Assets Acquired
74.3 53.7 
Settlement Related to Defined Benefit Pension Plan— (2.6)
Change in Accumulated Undistributed Earnings of Equity Method Limited Liability Investments7.0 31.1 
Change in Value of Equity and Convertible Securities
4.3 2.7 
Pension Plan assets reverted to the Company— 13.1 
Changes in:
Receivables from Policyholders10.5 (25.9)
Reinsurance Recoverables(0.5)7.0 
Deferred Policy Acquisition Costs(26.7)(38.3)
Insurance Reserves375.4 (2.3)
Unearned Premiums(30.1)(26.0)
Income Taxes(7.0)65.3 
Other
39.4 — 
Net Cash Provided by (Used in) Operating Activities584.5 382.9 
8

Kemper Corporation
Consolidated Statements of Cash Flows
(Dollars in Millions)
 (Unaudited)
 Year Ended
 Dec 31,
2025		Dec 31,
2024
Net Cash Provided by (Used in) Operating Activities (Carryforward from page 8)584.5 382.9 
Cash Flows from Investing Activities:
Proceeds from the Sales, Calls and Maturities of Fixed Maturities1,166.3 1,316.5 
Proceeds from the Sales or Paydowns of Investments:
Equity Securities24.7 37.8 
Real Estate Investments5.5 3.7 
Mortgage Loans124.2 121.6 
Other Investments42.5 21.8 
Purchases of Investments:
Fixed Maturities(1,354.0)(1,012.5)
Equity Securities(115.1)(19.4)
Real Estate Investments(2.5)(1.6)
Company-Owned Life Insurance(1.5)(3.5)
Mortgage Loans(198.6)(109.7)
Other Investments(80.0)(51.2)
Net Sales (Purchases) of Short-term Investments746.9 (521.0)
Acquisition of Software and Long-lived Assets(30.6)(53.2)
Settlement Proceeds from Company-Owned Life Insurance4.3 13.5 
Other4.1 12.8 
Net Cash Provided by (Used in) Investing Activities336.2 (244.4)
Cash Flows from Financing Activities:
Repayment of Long-term Debt(450.0)— 
Proceeds from Policyholder Contract Obligations30.9 102.2 
Repayment of Policyholder Contract Obligations(65.5)(120.6)
Proceeds from Shares Issued under Employee Stock Purchase Plan3.7 3.8 
Common Stock Repurchases(301.9)(38.9)
Dividends Paid(79.6)(80.1)
Other2.3 (3.6)
Net Cash Used in Financing Activities(860.1)(137.2)
Net increase (decrease) in cash1
60.6 1.3 
Cash, Beginning of Year1
65.4 64.1 
Cash, End of Period1
$126.0 $65.4 
1Includes amounts attributable to Kemper Reciprocal reported as non-controlling interest.
9

Kemper Corporation
Capital Metrics
(Dollars and Shares in Millions, Except Per Share Amounts)
(Unaudited)
 Dec 31,
2025		Sep 30, 2025Jun 30, 2025Mar 31, 2025Dec 31, 2024Sep 30, 2024Jun 30, 2024Mar 31, 2024
Book Value Per Share   
Book Value Per Share$45.71 $45.38 $46.45 $45.60 $43.68 $43.30 $41.46 $40.24 
Adjusted Book Value Per Share1
$28.06 $28.55 $31.01 $30.31 $29.04 $27.88 $27.14 $26.19 
Debt and Total Capitalization
Debt$943.5 $943.1 $942.6 $942.1 $1,391.6 $1,390.9 $1,390.4 $1,389.8 
Kemper Corporation Shareholders’ Equity2,681.4 2,732.1 2,953.4 2,917.6 2,788.4 2,773.3 2,671.2 2,589.8 
Total Capitalization$3,624.9 $3,675.2 $3,896.0 $3,859.7 $4,180.0 $4,164.2 $4,061.6 $3,979.6 
Ratio of Debt to Kemper Corporation Shareholders’ Equity35.2 %34.5 %31.9 %32.3 %49.9 %50.2 %52.1 %53.7 %
Ratio of Debt to Total Capitalization26.0 %25.7 %24.2 %24.4 %33.3 %33.4 %34.2 %34.9 %
Debt$943.5 $943.1 $942.6 $942.1 $1,391.6 $1,390.9 $1,390.4 $1,389.8 
Kemper Corporation Shareholders’ Equity$2,681.4 $2,732.1 $2,953.4 $2,917.6 $2,788.4 $2,773.3 $2,671.2 $2,589.8 
Less: Accumulated Other Comprehensive Loss
(206.2)(227.1)(257.7)(261.3)(304.5)(252.5)(317.3)(335.0)
Kemper Corporation Shareholders’ Equity Excluding Accumulated Other Comprehensive Loss
$2,887.6 $2,959.2 $3,211.1 $3,178.9 $3,092.9 $3,025.8 $2,988.5 $2,924.8 
Total Capitalization Excluding Accumulated Other Comprehensive Loss
$3,831.1 $3,902.3 $4,153.7 $4,121.0 $4,484.5 $4,416.7 $4,378.9 $4,314.6 
Ratio of Debt to Kemper Corporation Shareholders’ Equity Excluding Accumulated Other Comprehensive Loss
32.7 %31.9 %29.4 %29.6 %45.0 %46.0 %46.5 %47.5 %
Ratio of Debt to Total Capitalization Excluding Accumulated Other Comprehensive Loss
24.6 %24.2 %22.7 %22.9 %31.0 %31.5 %31.8 %32.2 %
Parent Company Liquidity2
Kemper Holding Company Cash and Investments3
$145.4 $156.8 $223.2 $161.3 $547.6 $503.7 $376.5 $395.6 
Borrowings Available Under Credit Agreement600.0 600.0 600.0 600.0 512.0 477.0 458.0 424.0 
Parent Company Liquidity$745.4 $756.8 $823.2 $761.3 $1,059.6 $980.7 $834.5 $819.6 
Capital Returned to Shareholders
Cash Dividends Paid4
$18.9 $19.7 $20.8 $20.2 $20.0 $20.3 $20.3 $19.5 
1Non-GAAP Financial Measure. See pages 29-32 for definition.
2Excludes borrowings available from subsidiaries
3Includes Kemper's direct non-insurance subsidiaries
4Three Months Ended
 
10

Kemper Corporation
Debt Outstanding, Federal Home Loan Bank Advances and Ratings
(Dollars in Millions)
(Unaudited)
Dec 31,
2025		Sep 30, 2025Jun 30, 2025Mar 31, 2025Dec 31, 2024Sep 30, 2024Jun 30, 2024Mar 31, 2024
Kemper Corporation:
Senior Notes at Amortized Cost:
Current:
4.350% Senior Notes due February 15, 2025$— $— $— $— $449.9 $449.9 $449.8 $449.7 
Non-Current:
2.400% Senior Notes due September 30, 2030397.9 397.8 397.7 397.6 397.5 397.4 397.3 397.1 
3.800% Senior Notes due 2032396.9 396.8 396.7 396.6 396.5 396.3 396.2 396.1 
5.875% Fixed-Rate Reset Junior Subordinated Debentures Due 2062 at Amortized Cost148.7 148.5 148.2 147.9 147.7 147.3 147.1 146.9 
Long-term Debt Outstanding$943.5 $943.1 $942.6 $942.1 $1,391.6 $1,390.9 $1,390.4 $1,389.8 
Federal Home Loan Bank Advances to Insurance Subsidiaries:
Reported as Policyholder Contract Liabilities:
Federal Home Loan Bank of Chicago$513.8 $525.2 $546.2 $536.2 $541.3 $521.3 $547.0 $563.2 
 A.M. BestMoody’sS&PFitch
As of Date of Financial Supplement
Kemper Debt Ratings:
Senior Unsecured Debtbbb-Baa3BBB-BBB-
Junior Unsecured DebtbbBa1BBBB
Insurance Company Financial Strength Ratings:
Trinity Universal Insurance CompanyA-A3A-A-
United Insurance Company of AmericaA-A3A-A-





11

Kemper Corporation
Segment Revenues
(Dollars in Millions)
(Unaudited)
 Three Months EndedYear Ended
 Dec 31,
2025		Sep 30, 2025Jun 30, 2025Mar 31, 2025Dec 31, 2024Sep 30, 2024Jun 30, 2024Mar 31, 2024Dec 31,
2025		Dec 31,
2024
Revenues:   
Specialty Property & Casualty Insurance:
Earned Premiums:
Personal Automobile$696.8 $785.1 $789.3 $753.7 $753.3 $731.3 $691.5 $675.3 $3,024.9 $2,851.4 
Commercial Automobile238.6 232.2 221.5 208.5 201.5 187.7 171.1 164.7 900.8 725.0 
Total Specialty Property & Casualty Insurance Earned Premiums935.4 1,017.3 1,010.8 962.2 954.8 919.0 862.6 840.0 3,925.7 3,576.4 
Net Investment Income57.3 53.8 49.6 50.5 49.9 52.0 46.6 41.1 211.2 189.6 
Other Income2.4 2.5 2.7 1.3 1.5 1.6 1.6 1.4 8.9 6.1 
Total Specialty Property & Casualty Insurance Revenues995.1 1,073.6 1,063.1 1,014.0 1,006.2 972.6 910.8 882.5 4,145.8 3,772.1 
Life Insurance:
Earned Premium93.4 99.8 100.5 99.7 95.2 100.6 100.8 97.3 393.4 393.9 
Net Investment Income47.1 48.0 44.7 48.4 45.5 50.3 30.5 44.3 188.2 170.6 
Other Income0.2 0.4 0.3 0.7 0.4 0.2 0.2 0.3 1.6 1.1 
Total Life Insurance Revenues140.7 148.2 145.5 148.8 141.1 151.1 131.5 141.9 583.2 565.6 
Total Segment Revenues1,135.8 1,221.8 1,208.6 1,162.8 1,147.3 1,123.7 1,042.3 1,024.4 4,729.0 4,337.7 
Change in Fair Value of Equity and Convertible Securities
(1.8)(2.1)(0.5)0.1 (2.6)(2.3)(1.2)3.4 (4.3)(2.7)
Non-Core Operations
17.5 18.2 21.3 27.9 37.6 54.8 83.8 106.2 84.9 282.4 
Net Realized Investment Gains (Losses), Impairment Losses, and Other1
(20.1)1.8 (3.8)2.2 4.5 2.7 5.0 9.0 (19.9)21.2 
Total Revenues$1,131.4 $1,239.7 $1,225.6 $1,193.0 $1,186.8 $1,178.9 $1,129.9 $1,143.0 $4,789.7 $4,638.6 
1In the fourth quarter of 2025, the Company elected to change the presentation of Net Realized Investment Gains (Losses), Impairment Losses, and Other by combining them into a single line item. Prior-period amounts have been recast to conform to the current-period presentation.

12

Kemper Corporation
Segment Adjusted Operating Results
(Dollars in Millions)
(Unaudited)
 Three Months EndedYear Ended
 Dec 31,
2025		Sep 30, 2025Jun 30, 2025Mar 31, 2025Dec 31, 2024Sep 30, 2024Jun 30, 2024Mar 31, 2024Dec 31,
2025		Dec 31,
2024
Segment Adjusted Operating Income:
  
Specialty Property & Casualty Insurance$3.1 $7.9 $98.9 $122.1 $126.7 $129.8 $127.9 $86.5 $232.0 $470.9 
Life Insurance23.5 22.1 14.3 20.2 28.4 18.0 (1.4)14.0 80.1 59.0 
Total Segment Adjusted Operating Income
26.6 30.0 113.2 142.3 155.1 147.8 126.5 100.5 312.1 529.9 
Corporate and Other Adjusted Operating Loss(12.5)(12.3)(11.3)(14.1)(15.2)(17.2)(13.7)(15.6)(50.2)(61.7)
Less: Loss before Income Taxes attributable to Noncontrolling Interest(2.6)(4.1)(3.4)(3.5)(2.2)(1.8)(1.3)(1.4)(13.6)(6.7)
Adjusted Consolidated Operating Income16.7 21.8 105.3 131.7 142.1 132.4 114.1 86.3 275.5 474.9 
(Loss) Income From:
Change in Fair Value of Equity and Convertible Securities
(1.8)(2.1)(0.5)0.1 (2.6)(2.3)(1.2)3.4 (4.3)(2.7)
Net Realized Investment Gains (Losses)0.8 3.9 (0.1)0.9 4.0 1.1 1.5 6.6 5.5 13.2 
Impairment Losses(4.4)(3.1)(3.6)0.3 (2.0)(2.2)(0.1)(1.5)(10.8)(5.8)
Acquisition and Disposition Related Transaction, Integration, Restructuring and Other Costs(18.3)(22.9)(4.8)(5.3)(9.5)(11.5)(6.5)(12.8)(51.3)(40.3)
Debt Extinguishment, Pension Settlement and Other Charges
— — — 0.5 (7.3)(2.8)2.7 — 0.5 (7.4)
Non-Core Operations
(3.9)(26.6)(5.4)(4.9)(3.2)(22.2)(17.3)6.0 (40.8)(36.7)
(Loss) Income before Income Taxes attributable to Kemper Corporation
$(10.9)$(29.0)$90.9 $123.3 $121.5 $92.5 $93.2 $88.0 $174.3 $395.2 
Segment Adjusted Net Operating Income (Loss):
Specialty Property & Casualty Insurance$2.6 $7.6 $79.0 $97.9 $101.2 $103.6 $102.3 $69.2 $187.1 $376.3 
Life Insurance20.1 18.6 12.6 17.2 23.5 15.0 (0.2)11.9 68.5 50.2 
Total Segment Adjusted Net Operating Income22.7 26.2 91.6 115.1 124.7 118.6 102.1 81.1 255.6 426.5 
Corporate and Other Adjusted Net Operating Loss(10.1)(9.0)(10.3)(11.4)(11.3)(15.1)(11.4)(12.5)(40.8)(50.3)
Less: Net Loss attributable to Noncontrolling Interest(2.0)(3.2)(2.8)(2.7)(1.7)(1.5)(1.0)(1.1)(10.7)(5.3)
Adjusted Consolidated Net Operating Income1
14.6 20.4 84.1 106.4 115.1 105.0 91.7 69.7 225.5 381.5 
Net (Loss) Income From:
Change in Fair Value of Equity and Convertible Securities
(1.4)(1.7)(0.4)0.1 (2.0)(1.8)(1.0)2.7 (3.4)(2.1)
Net Realized Investment Gains (Losses)0.6 3.1 (0.1)0.7 3.1 0.9 1.2 5.2 4.3 10.4 
Impairment Losses(3.4)(2.5)(2.8)0.2 (1.6)(1.7)(0.1)(1.2)(8.5)(4.6)
Acquisition and Disposition Related Transaction, Integration, Restructuring and Other Costs(15.5)(19.6)(3.8)(4.2)(7.5)(9.1)(5.1)(10.1)(43.1)(31.8)
Debt Extinguishment, Pension Settlement and Other Charges
— — — 0.4 (7.3)(2.2)2.1 — 0.4 (7.4)
Non-Core Operations
(2.9)(20.7)(4.4)(3.9)(2.4)(17.4)(13.4)5.0 (31.9)(28.2)
Net (Loss) Income attributable to Kemper Corporation
$(8.0)$(21.0)$72.6 $99.7 $97.4 $73.7 $75.4 $71.3 $143.3 $317.8 
1Non-GAAP Financial Measure. See pages 29-32 for definition.
        
13

Kemper Corporation
Catastrophe Frequency and Severity
(Dollars in Millions)
(Unaudited)
Three Months Ended December 31, 2025
Specialty Property & Casualty Insurance SegmentLife Insurance SegmentNon-Core OperationsConsolidated
Number of EventsLosses and LAENumber of EventsLosses and LAENumber of EventsLosses and LAENumber of EventsLosses and LAE
Range of Losses and LAE Per Event1:
Below $543 $1.4 28 $0.2 31 $0.3 47 $1.9 
$5 - $10— — — — — — — — 
$10 - $15— — — — — — — — 
$15 - $20— — — — — — — — 
$20 - $25— — — — — — — — 
Greater Than $25— — — — — — — — 
Total43 $1.4 28 $0.2 31 $0.3 47 $1.9 
Three Months Ended December 31, 2024
Specialty Property & Casualty Insurance SegmentLife Insurance SegmentNon-Core OperationsConsolidated
Number of EventsLosses and LAENumber of EventsLosses and LAENumber of EventsLosses and LAENumber of EventsLosses and LAE
Range of Losses and LAE Per Event1:
Below $56 $1.9 4 $0.4 3 $3.1 7 $5.4 
$5 - $10— — — — — — — — 
$10 - $15— — — — — — — — 
$15 - $20— — — — — — — — 
$20 - $25— — — — — — — — 
Greater Than $25— — — — — — — — 
Total6 $1.9 4 $0.4 3 $3.1 7 $5.4 
1Current accident year net incurred catastrophe Losses and LAE only.













14

Kemper Corporation
Catastrophe Frequency and Severity (continued)
(Dollars in Millions)
(Unaudited)
Year Ended December 31, 2025
Specialty Property & Casualty Insurance SegmentLife Insurance SegmentNon-Core OperationsConsolidated
Number of EventsLosses and LAENumber of EventsLosses and LAENumber of EventsLosses and LAENumber of EventsLosses and LAE
Range of Losses and LAE Per Event1:
Below $553 $11.5 36 $1.2 34 $4.8 55 $17.5 
$5 - $10— — — — — — — — 
$10 - $15— — — — — — — — 
$15 - $20— — — — — — — — 
$20 - $25— — — — — — — — 
Greater Than $25— — — — — — — — 
Total53 $11.5 36 $1.2 34 $4.8 55 $17.5 
Year Ended December 31, 2024
Specialty Property & Casualty Insurance SegmentLife Insurance SegmentNon-Core OperationsConsolidated
Number of EventsLosses and LAENumber of EventsLosses and LAENumber of EventsLosses and LAENumber of EventsLosses and LAE
Range of Losses and LAE Per Event1:
Below $563 $19.9 55 $2.2 60 $43.2 69 $47.7 
$5 - $10— — — — — — 3 17.6 
$10 - $15— — — — — — — — 
$15 - $20— — — — — — — — 
$20 - $25— — — — — — — — 
Greater Than $25— — — — — — — — 
Total63 $19.9 55 $2.2 60 $43.2 72 $65.3 
1Current accident year net incurred catastrophe Losses and LAE only.





15

Kemper Corporation
Specialty Property & Casualty Insurance Segment
Results of Operations and Selected Financial Information
(Dollars in Millions)
(Unaudited)
 Three Months EndedYear Ended
 Dec 31,
2025		Sep 30, 2025Jun 30, 2025Mar 31, 2025Dec 31, 2024Sep 30, 2024Jun 30, 2024Mar 31, 2024Dec 31,
2025		Dec 31,
2024
Results of Operations    
Net Premiums Written$860.3 $982.2 $1,001.5 $1,068.8 $948.9 $938.0 $933.9 $864.6 $3,912.8 $3,685.4 
Total Specialty P&C:
Personal Automobile$696.8 $785.1 $789.3 $753.7 $753.3 $731.3 $691.5 $675.3 $3,024.9 $2,851.4 
Commercial Automobile238.6 232.2 221.5 208.5 201.5 187.7 171.1 164.7 900.8 725.0 
Earned Premiums935.4 1,017.3 1,010.8 962.2 954.8 919.0 862.6 840.0 3,925.7 3,576.4 
Net Investment Income57.3 53.8 49.6 50.5 49.9 52.0 46.6 41.1 211.2 189.6 
Other Income2.4 2.5 2.7 1.3 1.5 1.6 1.6 1.4 8.9 6.1 
Total Revenues995.1 1,073.6 1,063.1 1,014.0 1,006.2 972.6 910.8 882.5 4,145.8 3,772.1 
Incurred Losses and LAE related to:
Current Year:
Non-catastrophe Losses and LAE780.0 798.7 730.1 682.3 668.8 644.2 592.8 609.0 2,991.1 2,514.8 
Catastrophe Losses and LAE1.4 1.0 5.3 3.8 1.9 3.6 10.3 4.1 11.5 19.9 
Prior Years:
Non-catastrophe Losses and LAE9.3 51.4 13.6 0.5 1.9 (0.1)(0.8)5.3 74.8 6.3 
Catastrophe Losses and LAE(0.8)— 0.4 0.2 (0.1)0.2 (0.1)0.7 (0.2)0.7 
Total Incurred Losses and LAE789.9 851.1 749.4 686.8 672.5 647.9 602.2 619.1 3,077.2 2,541.7 
Insurance Expenses202.1 214.6 214.8 205.1 207.0 194.9 180.7 176.9 836.6 759.5 
Segment Adjusted Operating Income3.1 7.9 98.9 122.1 126.7 129.8 127.9 86.5 232.0 470.9 
Income Tax Expense0.5 0.3 19.9 24.2 25.5 26.2 25.6 17.3 44.9 94.6 
Total Segment Adjusted Net Operating Income$2.6 $7.6 $79.0 $97.9 $101.2 $103.6 $102.3 $69.2 $187.1 $376.3 
Ratios Based On Earned Premiums
Current Year Non-catastrophe Losses and LAE Ratio83.4 %78.5 %72.3 %70.9 %70.0 %70.1 %68.7 %72.5 %76.2 %70.3 %
Current Year Catastrophe Losses and LAE Ratio0.1 0.1 0.5 0.4 0.2 0.4 1.2 0.5 0.3 0.6 
Prior Years Non-catastrophe Losses and LAE Ratio1.0 5.1 1.3 0.1 0.2 — (0.1)0.6 1.9 0.2 
Prior Years Catastrophe Losses and LAE Ratio(0.1)— — — — — — 0.1 — — 
Total Incurred Loss and LAE Ratio84.4 83.7 74.1 71.4 70.4 70.5 69.8 73.7 78.4 71.1 
Insurance Expense Ratio21.6 21.1 21.3 21.3 21.7 21.2 20.9 21.1 21.3 21.2 
Combined Ratio106.0 %104.8 %95.4 %92.7 %92.1 %91.7 %90.7 %94.8 %99.7 %92.3 %
Underlying Combined Ratio1
Current Year Non-catastrophe Losses and LAE Ratio83.4 %78.5 %72.3 %70.9 %70.0 %70.1 %68.7 %72.5 %76.2 %70.3 %
Insurance Expense Ratio21.6 21.1 21.3 21.3 21.7 21.2 20.9 21.1 21.3 21.2 
Underlying Combined Ratio105.0 %99.6 %93.6 %92.2 %91.7 %91.3 %89.6 %93.6 %97.5 %91.5 %
Non-GAAP Measure Reconciliation
Combined Ratio as Reported106.0 %104.8 %95.4 %92.7 %92.1 %91.7 %90.7 %94.8 %99.7 %92.3 %
Less:
Current Year Catastrophe Losses and LAE Ratio0.1 0.1 0.5 0.4 0.2 0.4 1.2 0.5 0.3 0.6 
Prior Years Non-catastrophe Losses and LAE Ratio1.0 5.1 1.3 0.1 0.2 — (0.1)0.6 1.9 0.2 
Prior Years Catastrophe Losses and LAE Ratio(0.1)— — — — — — 0.1 — — 
Underlying Combined Ratio105.0 %99.6 %93.6 %92.2 %91.7 %91.3 %89.6 %93.6 %97.5 %91.5 %
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.
16

Kemper Corporation
Specialty Property & Casualty Insurance Segment
Results of Operations and Selected Financial Information (continued)
(Dollars in Millions)
(Unaudited)
Dec 31,
2025		Sep 30, 2025Jun 30, 2025Mar 31, 2025Dec 31, 2024Sep 30, 2024Jun 30, 2024Mar 31, 2024
Insurance Reserves:
Non-Standard Automobile$1,826.8 $1,752.1 $1,661.2 $1,640.3 $1,626.0 $1,605.3 $1,597.1 $1,633.1 
Commercial Automobile942.6 894.2 813.0 771.5 721.9 677.5 640.5 618.1 
Insurance Reserves$2,769.4 $2,646.3 $2,474.2 $2,411.8 $2,347.9 $2,282.8 $2,237.6 $2,251.2 
Insurance Reserves:
Loss and Allocated LAE Reserves:
Case and Allocated LAE$960.4 $932.7 $906.1 $930.1 $921.8 $932.5 $952.8 $965.7 
Incurred but Not Reported1,610.9 1,518.7 1,378.8 1,300.5 1,250.6 1,177.5 1,113.1 1,114.8 
Total Loss Reserves2,571.3 2,451.4 2,284.9 2,230.6 2,172.4 2,110.0 2,065.9 2,080.5 
Unallocated LAE Reserves198.1 194.9 189.3 181.2 175.5 172.8 171.7 170.7 
Insurance Reserves$2,769.4 $2,646.3 $2,474.2 $2,411.8 $2,347.9 $2,282.8 $2,237.6 $2,251.2 
17

Kemper Corporation
Specialty Property & Casualty Insurance Segment
Personal Automobile Insurance - Results of Operations and Selected Financial Information
(Dollars in Millions)
(Unaudited)
 Three Months EndedYear Ended
 Dec 31,
2025		Sep 30, 2025Jun 30, 2025Mar 31, 2025Dec 31, 2024Sep 30, 2024Jun 30, 2024Mar 31, 2024Dec 31,
2025		Dec 31,
2024
Results of Operations   
Net Premiums Written$615.6 $727.6 $767.0 $823.9 $740.6 $735.1 $739.5 $672.5 $2,934.1 $2,887.7 
Earned Premiums$696.8 $785.1 $789.3 $753.7 $753.3 $731.3 $691.5 $675.3 $3,024.9 $2,851.4 
Net Investment Income35.7 33.8 31.3 31.8 31.6 33.0 30.3 26.9 132.6 121.8 
Other Income2.3 2.3 2.6 1.2 1.3 1.5 1.5 1.3 8.4 5.6 
Total Revenues734.8 821.2 823.2 786.7 786.2 765.8 723.3 703.5 3,165.9 2,978.8 
Incurred Losses and LAE related to:
Current Year:
Non-catastrophe Losses and LAE607.6 629.2 571.7 528.4 519.6 507.8 471.6 485.7 2,336.9 1,984.7 
Catastrophe Losses and LAE1.1 0.6 4.3 2.7 1.0 2.1 7.9 3.5 8.7 14.5 
Prior Years:
Non-catastrophe Losses and LAE0.3 8.0 (5.0)(4.7)(5.3)(2.7)0.6 6.5 (1.4)(0.9)
Catastrophe Losses and LAE(0.8)(0.1)0.3 0.1 — 0.1 — 0.6 (0.5)0.7 
Total Incurred Losses and LAE608.2 637.7 571.3 526.5 515.3 507.3 480.1 496.3 2,343.7 1,999.0 
Insurance Expenses159.1 172.5 173.7 166.8 168.8 158.8 148.0 145.6 672.1 621.2 
Adjusted Operating (Loss) Income(32.5)11.0 78.2 93.4 102.1 99.7 95.2 61.6 150.1 358.6 
Income Tax (Benefit) Expense(6.0)1.4 16.1 18.7 20.7 20.2 19.3 12.3 30.2 72.5 
Total Product Line Adjusted Net Operating (Loss) Income$(26.5)$9.6 $62.1 $74.7 $81.4 $79.5 $75.9 $49.3 $119.9 $286.1 
Ratios Based On Earned Premiums
Current Year Non-catastrophe Losses and LAE Ratio87.2 %80.1 %72.5 %70.1 %69.0 %69.5 %68.2 %71.9 %77.2 %69.6 %
Current Year Catastrophe Losses and LAE Ratio0.2 0.1 0.5 0.4 0.1 0.3 1.1 0.5 0.3 0.5 
Prior Years Non-catastrophe Losses and LAE Ratio— 1.0 (0.6)(0.6)(0.7)(0.4)0.1 1.0 — — 
Prior Years Catastrophe Losses and LAE Ratio(0.1)— — — — — — 0.1 — — 
Total Incurred Loss and LAE Ratio87.3 81.2 72.4 69.9 68.4 69.4 69.4 73.5 77.5 70.1 
Insurance Expense Ratio22.8 22.0 22.0 22.1 22.4 21.7 21.4 21.6 22.2 21.8 
Combined Ratio110.1 %103.2 %94.4 %92.0 %90.8 %91.1 %90.8 %95.1 %99.7 %91.9 %
Underlying Combined Ratio1
Current Year Non-catastrophe Losses and LAE Ratio87.2 %80.1 %72.5 %70.1 %69.0 %69.5 %68.2 %71.9 %77.2 %69.6 %
Insurance Expense Ratio22.8 22.0 22.0 22.1 22.4 21.7 21.4 21.6 22.2 21.8 
Underlying Combined Ratio110.0 %102.1 %94.5 %92.2 %91.4 %91.2 %89.6 %93.5 %99.4 %91.4 %
Non-GAAP Measure Reconciliation
Combined Ratio110.1 %103.2 %94.4 %92.0 %90.8 %91.1 %90.8 %95.1 %99.7 %91.9 %
Less:
Current Year Catastrophe Losses and LAE Ratio0.2 0.1 0.5 0.4 0.1 0.3 1.1 0.5 0.3 0.5 
Prior Years Non-catastrophe Losses and LAE Ratio— 1.0 (0.6)(0.6)(0.7)(0.4)0.1 1.0 — — 
Prior Years Catastrophe Losses and LAE Ratio(0.1)— — — — — — 0.1 — — 
Underlying Combined Ratio110.0 %102.1 %94.5 %92.2 %91.4 %91.2 %89.6 %93.5 %99.4 %91.4 %
1Underlying Combined Ratio is a non-GAAP measure, which is computed as the difference between three operating ratios: the combined ratio, the effect of catastrophes (excluding development of prior-year catastrophes) on the combined ratio and the effect of prior-year reserve development at the reporting date (including development on prior-year catastrophes) on the combined ratio.
18

Kemper Corporation
Specialty Property & Casualty Insurance Segment
Commercial Automobile Insurance - Results of Operations and Selected Financial Information
(Dollars in Millions)
(Unaudited)
 Three Months EndedYear Ended
 Dec 31,
2025		Sep 30, 2025Jun 30, 2025Mar 31, 2025Dec 31, 2024Sep 30, 2024Jun 30, 2024Mar 31, 2024Dec 31,
2025		Dec 31,
2024
Results of Operations   
Net Premiums Written$244.7 $254.6 $234.5 $244.9 $208.3 $202.9 $194.4 $192.1 $978.7 $797.7 
Earned Premiums$238.6 $232.2 $221.5 $208.5 $201.5 $187.7 $171.1 $164.7 $900.8 $725.0 
Net Investment Income21.6 20.0 18.3 18.7 18.3 19.0 16.3 14.2 78.6 67.8 
Other Income0.1 0.2 0.1 0.1 0.2 0.1 0.1 0.1 0.5 0.5 
Total Revenues260.3 252.4 239.9 227.3 220.0 206.8 187.5 179.0 979.9 793.3 
Incurred Losses and LAE related to:
Current Year:
Non-catastrophe Losses and LAE172.4 169.5 158.4 153.9 149.2 136.4 121.2 123.3 654.2 530.1 
Catastrophe Losses and LAE0.3 0.4 1.0 1.1 0.9 1.5 2.4 0.6 2.8 5.4 
Prior Years:
Non-catastrophe Losses and LAE9.0 43.4 18.6 5.2 7.2 2.6 (1.4)(1.2)76.2 7.2 
Catastrophe Losses and LAE— 0.1 0.1 0.1 (0.1)0.1 (0.1)0.1 0.3 — 
Total Incurred Losses and LAE181.7 213.4 178.1 160.3 157.2 140.6 122.1 122.8 733.5 542.7 
Insurance Expenses43.0 42.1 41.1 38.3 38.2 36.1 32.7 31.3 164.5 138.3 
Adjusted Operating Income (Loss)35.6 (3.1)20.7 28.7 24.6 30.1 32.7 24.9 81.9 112.3 
Income Tax Expense (Benefit)6.5 (1.1)3.8 5.5 4.8 6.0 6.3 5.0 14.7 22.1 
Total Product Line Adjusted Net Operating Income (Loss)$29.1 $(2.0)$16.9 $23.2 $19.8 $24.1 $26.4 $19.9 $67.2 $90.2 
Ratios Based On Earned Premiums
Current Year Non-catastrophe Losses and LAE Ratio72.3 %73.0 %71.5 %73.9 %74.0 %72.6 %70.9 %74.8 %72.6 %73.2 %
Current Year Catastrophe Losses and LAE Ratio0.1 0.2 0.5 0.5 0.4 0.8 1.4 0.4 0.3 0.7 
Prior Years Non-catastrophe Losses and LAE Ratio3.8 18.7 8.4 2.5 3.6 1.4 (0.8)(0.7)8.5 1.0 
Prior Years Catastrophe Losses and LAE Ratio— — — — — 0.1 (0.1)0.1 — — 
Total Incurred Loss and LAE Ratio76.2 91.9 80.4 76.9 78.0 74.9 71.4 74.6 81.4 74.9 
Insurance Expense Ratio18.0 18.1 18.6 18.4 19.0 19.2 19.1 19.0 18.3 19.1 
Combined Ratio94.2 %110.0 %99.0 %95.3 %97.0 %94.1 %90.5 %93.6 %99.7 %94.0 %
Underlying Combined Ratio1
Current Year Non-catastrophe Losses and LAE Ratio72.3 %73.0 %71.5 %73.9 %74.0 %72.6 %70.9 %74.8 %72.6 %73.2 %
Insurance Expense Ratio18.0 18.1 18.6 18.4 19.0 19.2 19.1 19.0 18.3 19.1 
Underlying Combined Ratio90.3 %91.1 %90.1 %92.3 %93.0 %91.8 %90.0 %93.8 %90.9 %92.3 %
Non-GAAP Measure Reconciliation
Combined Ratio94.2 %110.0 %99.0 %95.3 %97.0 %94.1 %90.5 %93.6 %99.7 %94.0 %
Less:
Current Year Catastrophe Losses and LAE Ratio0.1 0.2 0.5 0.5 0.4 0.8 1.4 0.4 0.3 0.7 
Prior Years Non-catastrophe Losses and LAE Ratio3.8 18.7 8.4 2.5 3.6 1.4 (0.8)(0.7)8.5 1.0 
Prior Years Catastrophe Losses and LAE Ratio— — — — — 0.1 (0.1)0.1 — — 
Underlying Combined Ratio90.3 %91.1 %90.1 %92.3 %93.0 %91.8 %90.0 %93.8 %90.9 %92.3 %
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.
    
19

Kemper Corporation
Life Insurance Segment
Results of Operations and Selected Financial Information
(Dollars in Millions)
(Unaudited)
 Three Months EndedYear Ended
 Dec 31,
2025		Sep 30, 2025Jun 30, 2025Mar 31, 2025Dec 31, 2024Sep 30, 2024Jun 30, 2024Mar 31, 2024Dec 31,
2025		Dec 31,
2024
Results of Operations  
Earned Premiums1
$93.4 $99.8 $100.5 $99.7 $95.2 $100.6 $100.8 $97.3 $393.4 $393.9 
Net Investment Income47.1 48.0 44.7 48.4 45.5 50.3 30.5 44.3 188.2 170.6 
Other Income0.2 0.4 0.3 0.7 0.4 0.2 0.2 0.3 1.6 1.1 
Total Revenues140.7 148.2 145.5 148.8 141.1 151.1 131.5 141.9 583.2 565.6 
Policyholders’ Benefits and Incurred Losses and LAE2
52.5 60.5 63.5 62.2 43.5 64.1 63.9 63.0 238.7 234.5 
Insurance Expenses64.7 65.6 67.7 66.4 69.2 69.0 69.0 64.9 264.4 272.1 
Segment Adjusted Operating Income (Loss)23.5 22.1 14.3 20.2 28.4 18.0 (1.4)14.0 80.1 59.0 
Income Tax Expense (Benefit)3.4 3.5 1.7 3.0 4.9 3.0 (1.2)2.1 11.6 8.8 
Total Segment Adjusted Net Operating Income (Loss)$20.1 $18.6 $12.6 $17.2 $23.5 $15.0 $(0.2)$11.9 $68.5 $50.2 
1 Earned Premiums were impacted by changes in deferred profit liability related to the annual review and assumptions update under LDTI that decreased earned premiums by $6.3 million in fourth quarter and full year 2025 and $4.8 million in fourth quarter and full year 2024.
2 Policyholders’ Benefits and Incurred Losses and LAE was impacted by changes in the annual assumptions update under LDTI that resulted in a $9.3 million decrease in policyholders' benefits for fourth quarter and full year 2025 and a $11.9 million decrease in policyholders’ benefits for fourth quarter and full year 2024.
    

20

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

Dec 31,
2025		Sep 30, 2025Jun 30, 2025Mar 31, 2025Dec 31,
2024		Sep 30, 2024Jun 30, 2024Mar 31, 2024
Insurance Reserves:
Future Policyholder Benefits$3,248.1 $3,282.2 $3,196.5 $3,186.0 $3,154.3 $3,380.8 $3,155.3 $3,248.8 
Incurred Losses and LAE Reserves:
Life35.0 31.1 34.3 39.0 40.8 40.4 42.1 40.7 
Accident and Health4.4 4.3 4.5 4.5 4.6 4.6 4.6 4.7 
Property1.9 2.0 2.1 2.1 2.7 3.0 2.6 2.5 
Total Incurred Losses and LAE Reserves41.3 37.4 40.9 45.6 48.1 48.0 49.3 47.9 
Insurance Reserves$3,289.4 $3,319.6 $3,237.4 $3,231.6 $3,202.4 $3,428.8 $3,204.6 $3,296.7 


21

Kemper Corporation
Expenses
(Dollars in Millions)
(Unaudited)
 Three Months EndedYear Ended
 Dec 31,
2025		Sep 30, 2025Jun 30, 2025Mar 31, 2025Dec 31, 2024Sep 30, 2024Jun 30, 2024Mar 31, 2024Dec 31,
2025		Dec 31,
2024
Insurance and Other Expenses: 
Insurance Expenses:
Policy Acquisition Costs, Net of Amortization
$162.9 $173.8 $177.1 $164.3 $166.2 $161.4 $159.1 $154.9 $678.1 $641.6 
Business Unit Operating Costs70.0 94.2 71.4 75.1 76.3 72.8 64.0 64.3 310.7 277.4 
Corporate Overhead Costs
43.5 43.7 44.6 46.7 47.5 49.3 49.4 48.8 178.5 195.0 
Insurance Expenses276.4 311.7 293.1 286.1 290.0 283.5 272.5 268.0 1,167.3 1,114.0 
Other Expenses:
Acquisition and Disposition Related Transaction, Integration, Restructuring and Other Costs5.0 22.9 4.8 5.3 9.5 11.5 6.5 12.8 38.0 40.3 
Pension Settlement— — — — — 0.1 (2.7)— — (2.6)
Other Corporate Costs
— 4.5 2.1 3.1 10.1 9.4 3.4 5.6 9.7 28.5 
Other Expenses5.0 27.4 6.9 8.4 19.6 21.0 7.2 18.4 47.7 66.2 
Insurance and Other Expenses281.4 339.1 300.0 294.5 309.6 304.5 279.7 286.4 1,215.0 1,180.2 
Interest Expense9.0 9.1 9.0 11.4 14.6 14.4 13.9 14.0 38.5 56.9 
Total Insurance, Interest, and Other Expenses
$290.4 $348.2 $309.0 $305.9 $324.2 $318.9 $293.6 $300.4 $1,253.5 $1,237.1 

22

Kemper Corporation
Details of Investment Performance
(Dollars in Millions)
(Unaudited)
 
Three Months Ended
Year Ended
 Dec 31,
2025		Sep 30, 2025Jun 30, 2025Mar 31, 2025Dec 31, 2024Sep 30, 2024Jun 30, 2024Mar 31, 2024Dec 31,
2025		Dec 31,
2024
Net Investment Income  
Interest on Fixed Income Securities1
$77.0 $79.1 $76.9 $76.4 $76.3 $79.0 $80.2 $79.8 $309.4 $315.3 
Dividends on Equity Securities Excluding Alternative Investments4.4 2.1 0.7 0.8 0.8 0.9 0.9 2.8 8.0 5.4 
Alternative Investments:
Equity Method Limited Liability Investments(1.0)— (5.3)(0.7)(2.3)0.9 (14.7)(2.1)(7.0)(18.2)
Limited Liability Investments Included in Equity Securities2.9 4.0 3.1 3.7 5.8 9.1 6.2 3.4 13.7 24.5 
Total Alternative Investments1.9 4.0 (2.2)3.0 3.5 10.0 (8.5)1.3 6.7 6.3 
Short-term Investments4.0 4.2 6.0 8.6 10.5 8.4 7.3 7.3 22.8 33.5 
Loans to Policyholders5.2 5.2 5.1 5.3 5.2 5.5 5.1 5.2 20.8 21.0 
Real Estate2.4 2.5 2.3 2.2 2.1 2.2 2.2 2.3 9.4 8.8 
Company-Owned Life Insurance
11.4 10.8 10.5 10.2 10.0 9.7 8.9 7.1 42.9 35.7 
Other3.1 3.1 3.3 2.0 0.9 2.2 2.6 2.5 11.5 8.2 
Total Investment Income109.4 111.0 102.6 108.5 109.3 117.9 98.7 108.3 431.5 434.2 
Investment Expenses:
Real Estate2.7 2.0 2.2 2.1 2.6 1.8 2.1 2.2 9.0 8.7 
Other Investment Expenses1
3.6 4.2 4.5 5.2 3.7 5.0 3.6 5.7 17.5 18.0 
Total Investment Expenses6.3 6.2 6.7 7.3 6.3 6.8 5.7 7.9 26.5 26.7 
Net Investment Income$103.1 $104.8 $95.9 $101.2 $103.0 $111.1 $93.0 $100.4 $405.0 $407.5 
Net Realized Investment Gains (Losses)
Fixed Maturities:
Gains on Sales$0.9 $3.7 $0.4 $1.3 $4.3 $0.9 $2.2 $12.8 $6.3 $20.2 
Losses on Sales(0.6)(0.5)(0.5)(0.5)(0.6)— (0.3)(2.3)(2.1)(3.2)
Losses on Hedging Activity
— — — — — — — (7.9)— (7.9)
Equity Securities:
Gains on Sales0.4 0.5 — — 0.1 — — 4.1 0.9 4.2 
Losses on Sales— — — — — — — (0.1)— (0.1)
Other Investments:
Gains on Sales0.1 0.2 — 0.1 0.9 1.8 1.5 — 0.4 4.2 
Losses on Sales— — — — (0.7)(1.6)(1.9)— — (4.2)
Net Realized Investment Gains (Losses)$0.8 $3.9 $(0.1)$0.9 $4.0 $1.1 $1.5 $6.6 $5.5 $13.2 
Net Impairment Losses Recognized in Earnings
Fixed Maturities$(4.6)$(2.9)$(3.6)$0.3 $(2.0)$(2.0)$0.2 $(1.0)$(10.8)$(4.8)
Equity Securities— — — — — — — (0.4)— (0.4)
Real Estate0.2 (0.1)— — (0.1)(0.2)(0.1)— 0.1 (0.4)
Other— (0.1)— — 0.1 — (0.2)(0.1)(0.1)(0.2)
Net Impairment Losses Recognized in Earnings$(4.4)$(3.1)$(3.6)$0.3 $(2.0)$(2.2)$(0.1)$(1.5)$(10.8)$(5.8)
1Reduced by interest expense incurred on FHLB borrowings used for spread lending purposes of $4.4 million, $4.7 million, $4.8 million, $4.8 million, $4.9 million, $4.8 million, $5.4 million, $5.2 million, for the three months ended December 31, 2025, June 30, 2025, March 31, 2025, December 31, 2024, September 30, 2024, June 30, 2024 and March 31, 2024, respectively.



23

 

Kemper Corporation
Details of Invested Assets
(Dollars in Millions)
(Unaudited)
 Dec 31, 2025Dec 31, 2024Dec 31, 2023
 Carrying
Value		Percent
of Total		Carrying
Value		Percent
of Total		Carrying
Value		Percent
of Total
Fixed Maturities Reported at Fair Value:
U.S. Government and Government Agencies and Authorities$622.4 7.2 %$486.8 5.5 %$511.5 5.7 %
States and Political Subdivisions1,253.2 14.5 1,233.2 13.9 1,401.9 15.7 
Foreign Governments 11.0 0.1 6.6 0.1 3.8 — 
Corporate Securities:
Bonds and Notes3,650.3 42.2 3,519.6 39.6 3,690.8 41.4 
Redeemable Preferred Stocks10.2 0.1 8.9 0.1 8.3 0.1 
Collateralized Loan Obligations843.0 9.7 741.5 8.3 949.8 10.7 
Other Mortgage- and Asset-backed353.2 4.1 413.0 4.6 315.8 3.5 
Total Fixed Maturities Reported at Fair Value6,743.3 77.9 6,409.6 72.1 6,881.9 77.1 
Equity Securities Reported at Fair Value:
Preferred Stocks19.2 0.2 22.6 0.3 25.5 0.3 
Common Stocks65.0 0.7 1.4 — 1.2 — 
Other Equity Interests:
Exchange Traded Funds11.9 0.1 10.9 0.1 7.7 0.1 
Limited Liability Companies and Limited Partnerships210.3 2.4 183.6 2.1 191.4 2.1 
Total Equity Securities Reported at Fair Value306.4 3.4 218.5 2.5 225.8 2.5 
Equity Method Limited Liability Investments176.0 2.0 186.3 2.1 221.7 2.5 
Short-term Investments at Cost which Approximates Fair Value313.5 3.6 1,037.1 11.7 520.9 5.9 
Company Owned Life Insurance579.2 6.7 539.2 6.1 513.5 5.8 
Loans to Policyholders279.9 3.2 280.7 3.2 281.2 3.2 
Other Investments:
Equity Securities Reported at Modified Cost21.7 0.3 22.5 0.2 32.6 0.4 
Real Estate at Depreciated Cost92.7 1.1 99.5 1.1 94.7 1.1 
Mortgage Loans149.8 1.7 75.3 0.8 99.8 1.1 
Other1
7.1 0.1 19.8 0.2 32.1 0.4 
Total Other Investments271.3 3.2 217.1 2.3 259.2 3.0 
Total Investments$8,669.6 100.0 %$8,888.5 100.0 %$8,904.2 100.0 %
1In 2025, the Company elected to change the presentation of Alternative Energy Partnership Investments by including them within Other. Prior-period amounts have been recast to conform to the current-period presentation.









24




Kemper Corporation
Details of Invested Assets (continued)
(Dollars in Millions)
(Unaudited)
 Dec 31, 2025Dec 31, 2024Dec 31, 2023
 Carrying
Value		Percent
of Total		Carrying
Value		Percent
of Total		Carrying
Value		Percent
of Total
S&P Equivalent Rating for Fixed Maturities
      
AAA, AA, A
$4,750.5 70.5 %$4,576.4 71.4 %$4,962.0 72.1 %
BBB
1,574.4 23.3 1,557.6 24.3 1,657.3 24.1 
BB, B
375.1 5.6 221.7 3.5 204.4 3.0 
CCC or Lower
43.3 0.6 53.9 0.8 58.2 0.8 
Total Investments in Fixed Maturities
$6,743.3 100.0 %$6,409.6 100.0 %$6,881.9 100.0 %
Duration (in Years)
Total Investments in Fixed Maturities
7.4 7.7 8.1 

25

Kemper Corporation
Investment Concentration
(Dollars in Millions)
(Unaudited)
 Dec 31, 2025Dec 31, 2024Dec 31, 2023
Fair Value of Non-governmental Fixed Maturities by IndustryAmountPercent
of Total
Investments		AmountPercent
of Total
Investments		AmountPercent
of Total
Investments
Finance, Insurance and Real Estate$2,048.2 23.6 %$1,969.1 22.2 %$2,070.5 23.3 %
Manufacturing961.1 11.1 1,014.3 11.4 1,077.6 12.1 
Transportation, Communication and Utilities884.6 10.2 793.0 8.9 807.3 9.1 
Services648.0 7.5 582.9 6.6 639.4 7.2 
Mining177.7 2.0 153.3 1.7 174.3 2.0 
Retail Trade110.1 1.3 125.7 1.4 156.0 1.8 
Construction10.5 0.1 11.7 0.1 4.4 — 
Other34.4 0.4 33.0 0.4 35.2 0.4 
Total Fair Value of Non-governmental Fixed Maturities$4,874.6 56.2 %$4,683.0 52.7 %$4,964.7 55.9 %
 
Dec 31, 2025
Ten Largest Investment Exposures1
Fair
Value		Percent
of Total
Investments
Fixed Maturities:
States including their Political Subdivisions:
California $134.8 1.6 %
Texas105.4 1.2 
Michigan84.8 1.0 
Georgia69.4 0.8 
New York61.2 0.7 
Florida54.2 0.6 
Pennsylvania47.3 0.5 
Virginia 35.6 0.4 
Louisiana35.6 0.4 
Colorado34.9 0.4 
Total$663.2 7.6 %
1Excluding Investments in U.S. Government and Government Agencies and Authorities at December 31, 2025.


 

26

Kemper Corporation
Municipal Bond Securities
(Dollars in Millions)
(Unaudited)
 Dec 31, 2025
Political Subdivision
General
Obligation
Revenue
State
General Obligation
Total Fair
Value		Percent
of Total
Muni Bond		Percent
of Total
Investments
California$9.1 $125.5 $— $134.6 10.7 %1.6 %
Texas10.8 91.1 3.6 105.5 8.4 1.2 
Michigan— 74.3 10.5 84.8 6.8 1.0 
Georgia1.8 62.2 5.5 69.5 5.6 0.8 
New York11.4 49.8 — 61.2 4.9 0.7 
Florida— 54.2 — 54.2 4.3 0.6 
Pennsylvania3.2 44.1 — 47.3 3.8 0.5 
Virginia— 29.6 6.0 35.6 2.8 0.4 
Louisiana1.3 22.0 12.3 35.6 2.8 0.4 
Colorado— 34.9 — 34.9 2.8 0.4 
Ohio— 33.2 — 33.2 2.7 0.4 
Illinois0.6 31.4 — 32.0 2.6 0.4 
Puerto Rico— 31.9 — 31.9 2.6 0.4 
Massachusetts— 24.6 5.2 29.8 2.4 0.3 
Missouri1.1 26.5 — 27.6 2.2 0.3 
Maryland— 26.6 — 26.6 2.1 0.3 
Minnesota1.0 24.9 — 25.9 2.1 0.3 
Oregon2.5 16.4 6.6 25.5 2.0 0.3 
Tennessee3.2 20.1 — 23.3 1.9 0.3 
Oklahoma— 22.7 — 22.7 1.8 0.3 
Washington1.4 18.4 2.5 22.3 1.8 0.3 
Connecticut— 17.0 2.5 19.5 1.6 0.2 
North Carolina1.7 17.7 — 19.4 1.5 0.2 
New Jersey— 19.2 — 19.2 1.5 0.2 
Rhode Island1.5 17.3 — 18.8 1.5 0.2 
New Hampshire0.4 18.0 — 18.4 1.5 0.2 
Indiana— 17.9 — 17.9 1.4 0.2 
Mississippi— 10.6 7.0 17.6 1.4 0.2 
District of Columbia— 15.4 2.1 17.5 1.4 0.2 
Arizona— 14.8 — 14.8 1.2 0.2 
South Carolina— 13.9 — 13.9 1.1 0.2 
North Dakota— 13.1 — 13.1 1.0 0.2 
Alabama— 12.9 — 12.9 1.0 0.1 
Iowa— 12.0 — 12.0 1.0 0.1 
Utah— 11.8 — 11.8 0.9 0.1 
Montana— 9.3 — 9.3 0.7 0.1 
Nebraska— 9.1 — 9.1 0.7 0.1 
South Dakota— 8.5 — 8.5 0.7 0.1 
Maine— 8.1 — 8.1 0.6 0.1 
All Other States5.0 17.6 4.9 27.5 2.2 0.3 
Total$56.0 $1,128.6 $68.7 $1,253.3 100.0 %14.4 %
27

Kemper Corporation
Investments in Limited Liability
Companies and Limited Partnerships
(Dollars in Millions)
(Unaudited)
 Unfunded
Commitment		Reported Value
Asset ClassDec 31,
2025		Dec 31,
2025		Dec 31,
2024
Reported as Equity Method Limited Liability Investments:
Senior Debt$56.9 $21.1 $19.1 
Mezzanine Debt38.8 115.5 116.7 
Secondary Transactions1.6 1.9 5.5 
Leveraged Buyout0.1 6.5 7.5 
Real Estate— 24.1 27.3 
Distressed Debt— 1.4 4.4 
Other0.1 5.5 5.8 
Total Equity Method Limited Liability Investments97.5 176.0 186.3 
Reported as Other Equity Interests at Fair Value:
Mezzanine Debt82.3 115.8 116.9 
Leveraged Buyout41.0 40.5 19.2 
Distressed Debt16.1 10.8 11.7 
Senior Debt6.1 25.5 26.3 
Growth Equity5.7 10.7 7.0 
Secondary Transactions1.0 1.3 2.4 
Real Estate— 0.1 — 
Other0.3 5.6 0.1 
Total Reported as Other Equity Interests at Fair Value152.5 210.3 183.6 
Other Equity Investments1
0.1 5.9 19.4 
Total Investments in Limited Liability Companies and Limited Partnerships$250.1 $392.2 $389.3 
1In 2025, the Company elected to change the presentation of Alternative Energy Partnership Investments and Equity Securities at Modified Costs by including them within Other Equity Investments. Prior-period amounts have been recast to conform to the current-period presentation.

28

Kemper Corporation
Definitions of Non-GAAP Financial Measures


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

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

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

Significant non-recurring items are excluded when (a) the nature of the charge or gain is such that it is reasonably unlikely to recur within two years, and (b) there has been no similar charge or gain within the prior two years. The most directly comparable GAAP financial measure is Net (Loss) Income attributable to Kemper Corporation. There were no applicable significant non-recurring items that the Company excluded from the calculation of Adjusted Consolidated Net Operating Income for the three months and year ended December 31, 2025 or 2024.

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. Change in Fair Value of Equity and Convertible Securities, Net Realized Investment Gains (Losses) and Impairment Losses related to investments included in the Company’s results may vary significantly between periods and are generally driven by business decisions and external economic developments such as capital market conditions that impact the values of the Company’s investments, the timing of which is unrelated to the insurance underwriting process. Acquisition and Disposition Related Transaction, Integration, Restructuring and Other Costs may vary significantly between periods and are generally driven by the timing of acquisitions and business decisions which are unrelated to the insurance underwriting process. In the third quarter of 2025, a restructuring program was launched to achieve operational and organizational efficiencies. The Company will continue to evaluate additional efficiency opportunities through 2027. Debt Extinguishment, Pension Settlement and Other Charges relate to (i) loss from early extinguishment of debt, which is driven by the Company’s financing and refinancing decisions and capital needs, as well as external economic developments such as debt market conditions, the timing of which is unrelated to the insurance underwriting process; (ii) settlement of pension plan obligations which are business decisions made by the Company, the timing of which is unrelated to the underwriting process; and (iii) other charges that are non-standard, not part of the ordinary course of business, and unrelated to the insurance underwriting process. Goodwill Impairment Charges are excluded because they are infrequent and non-recurring charges. Non-Core Operations includes the results of our Preferred Insurance business which we expect to fully exit. These results are excluded because they are irrelevant to our ongoing operations and do not qualify for Discontinued Operations under Generally Accepted Accounting Principles ("GAAP"). Significant non-recurring items are excluded because, by their nature, they are not indicative of the Company’s business or economic trends. The preceding non-GAAP financial measures should not be considered a substitute for the comparable GAAP financial measures, as they do not fully recognize the profitability of the Company’s businesses.






















29

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


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

 Three Months EndedYear Ended
Dollars in Millions (Unaudited)Dec 31,
2025		Sep 30, 2025Jun 30, 2025Mar 31, 2025Dec 31, 2024Sep 30, 2024Jun 30, 2024Mar 31, 2024Dec 31,
2025		Dec 31,
2024
Net (Loss) Income attributable to Kemper Corporation
$(8.0)$(21.0)$72.6 $99.7 $97.4 $73.7 $75.4 $71.3 $143.3 $317.8 
Less Net (Loss) Income From:
Change in Fair Value of Equity and Convertible Securities
(1.4)(1.7)(0.4)0.1 (2.0)(1.8)(1.0)2.7 (3.4)(2.1)
Net Realized Investment Gains (Losses)0.6 3.1 (0.1)0.7 3.1 0.9 1.2 5.2 4.3 10.4 
Impairment Losses(3.4)(2.5)(2.8)0.2 (1.6)(1.7)(0.1)(1.2)(8.5)(4.6)
Acquisition and Disposition Related Transaction, Integration, Restructuring and Other Costs(15.5)(19.6)(3.8)(4.2)(7.5)(9.1)(5.1)(10.1)(43.1)(31.8)
Debt Extinguishment, Pension Settlement and Other Charges— — — 0.4 (7.3)(2.2)2.1 — 0.4 (7.4)
Non-Core Operations(2.9)(20.7)(4.4)(3.9)(2.4)(17.4)(13.4)5.0 (31.9)(28.2)
Adjusted Consolidated Net Operating Income$14.6 $20.4 $84.1 $106.4 $115.1 $105.0 $91.7 $69.7 $225.5 $381.5 

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 (Loss) Income attributable to Kemper Corporation per Unrestricted Share ‐ basic. A reconciliation of Net (Loss) Income attributable to Kemper Corporation per Unrestricted Share - basic to Adjusted Consolidated Net Operating Income per Unrestricted Share is presented below:

 Three Months EndedYear Ended
Dollars in Millions (Unaudited)Dec 31,
2025		Sep 30, 2025Jun 30, 2025Mar 31, 2025Dec 31, 2024Sep 30, 2024Jun 30, 2024Mar 31, 2024Dec 31,
2025		Dec 31,
2024
Net (Loss) Income attributable to Kemper Corporation per Unrestricted Share
$(0.13)$(0.34)$1.13 $1.56 $1.52 $1.15 $1.17 $1.11 $2.31 $4.95 
Less Net (Loss) Income per Unrestricted Share From:
Change in Fair Value of Equity and Convertible Securities
(0.02)(0.03)— — (0.03)(0.02)(0.02)0.04 (0.05)(0.03)
Net Realized Investment Gains0.01 0.05 — 0.01 0.04 0.01 0.02 0.09 0.07 0.16 
Impairment Losses(0.06)(0.04)(0.04)— (0.03)(0.03)— (0.02)(0.14)(0.08)
Acquisition and Disposition Related Transaction, Integration, Restructuring and Other Costs(0.26)(0.32)(0.07)(0.07)(0.12)(0.14)(0.08)(0.16)(0.70)(0.50)
Debt Extinguishment, Pension Settlement and Other Charges— — — 0.01 (0.11)(0.03)0.03 — 0.01 (0.11)
Non-Core Operations(0.05)(0.33)(0.07)(0.06)(0.04)(0.27)(0.21)0.08 (0.52)(0.44)
Adjusted Consolidated Net Operating Income per Unrestricted Share$0.25 $0.33 $1.31 $1.67 $1.81 $1.63 $1.43 $1.08 $3.64 $5.95 






30

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


Return on Adjusted Shareholders' Equity is a calculation that uses a non-GAAP financial measure. It is calculated by dividing the period’s annualized Net (Loss) Income attributable to Kemper Corporation by the average shareholders’ equity excluding net unrealized gains and losses on fixed maturities, the change in discount rate on future life policyholder benefits and goodwill. Return on Shareholders' Equity is the most directly comparable GAAP measure. We use this non-GAAP measure to identify and analyze the change in performance attributable to management efforts between periods. The Company believes this non-GAAP financial measure is useful to investors because it eliminates the effect of items that can fluctuate significantly from period to period and are generally driven by economic developments, primarily capital market conditions, the magnitude and timing of which are not influenced by management. The Company believes it enhances understanding and comparability of performance by highlighting underlying business activity and profitability drivers. The “Return on Adjusted Shareholders’ Equity” metric was referred to as “Return on Tangible Shareholders’ Equity” in prior periods.

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

 Three Months EndedYear Ended
Dollars in Millions (Unaudited)Dec 31, 2025Sep 30, 2025Jun 30, 2025Mar 31, 2025Dec 31, 2024Sep 30, 2024Jun 30, 2024Mar 31, 2024Dec 31,
2025		Dec 31,
2024
Numerator:
Annualized Net (Loss) Income attributable to Kemper Corporation$(32.0)$(84.0)$290.4 $398.8 $389.6 $294.8 $301.6 $285.2 $143.3 $317.8 
Denominator:
Average Shareholders' Equity1
$2,706.8 $2,842.8 $2,935.5 $2,853.0 $2,780.9 $2,722.3 $2,630.5 $2,547.5 $2,814.6 $2,665.6 
Less: Average Net Unrealized Losses on Fixed Maturities
559.8 595.9 638.6 667.6 576.1 570.8 652.2 576.1 618.6 598.1 
Less: Average Change in Discount Rate on Future Life Policyholder Benefits
(333.4)(343.0)(368.0)(373.2)(286.6)(275.4)(315.1)(216.3)(356.6)(272.8)
Less: Average Goodwill
(1,250.7)(1,250.7)(1,250.7)(1,250.7)(1,250.7)(1,250.7)(1,250.7)(1,250.7)(1,250.7)(1,250.7)
Average Adjusted Shareholders' Equity1
$1,682.5 $1,845.0 $1,955.4 $1,896.7 $1,819.7 $1,767.0 $1,716.9 $1,656.6 $1,825.9 $1,740.2 
Return on Shareholders' Equity:
Return on Shareholders' Equity(1.2)%(3.0)%9.9 %14.0 %14.0 %10.8 %11.5 %11.2 %5.1 %11.9 %
Return on Adjusted Shareholders' Equity(1.9)%(4.6)%14.9 %21.0 %21.4 %16.7 %17.6 %17.2 %7.8 %18.3 %
1Average shareholders' equity and average adjusted shareholders’ equity for the three months ended is the simple average of the beginning and ending balances for the period. Average shareholders’ equity and average adjusted shareholders’ equity on a year-to-date basis is the (a) the sum of the balance at the beginning of the year and the ending balance for each quarter within that year divided by (b) the number of quarters in the period presented plus one.

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

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






31

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


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

A reconciliation of Book Value Per Share to Adjusted Book Value Per Share is presented below:

 As of
Dollars and Shares in Millions Except Per Share Amounts (Unaudited)Dec 31, 2025Sep 30, 2025Jun 30, 2025Mar 31, 2025Dec 31, 2024Sep 30, 2024Jun 30, 2024Mar 31, 2024
Numerator:
Kemper Corporation Shareholders’ Equity$2,681.4 $2,732.1 $2,953.4 $2,917.6 $2,788.4 $2,773.3 $2,671.2 $2,589.8 
Less: Net Unrealized Losses on Fixed Maturities
566.2 553.4 638.6 638.6 696.5 455.8 685.9 618.4 
Less: Change in Discount Rate on Future Life Policyholder Benefits
(350.8)(316.0)(370.0)(366.0)(380.3)(192.9)(358.0)(272.1)
Less: Goodwill
(1,250.7)(1,250.7)(1,250.7)(1,250.7)(1,250.7)(1,250.7)(1,250.7)(1,250.7)
Adjusted Shareholders' Equity
$1,646.1 $1,718.8 $1,971.3 $1,939.5 $1,853.9 $1,785.5 $1,748.4 $1,685.4 
Denominator:
Common Shares Issued and Outstanding58.66760.20263.57663.97963.84064.04464.42764.358
Book Value Per Share:
Book Value Per Share
$45.71 $45.38 $46.45 $45.60 $43.68 $43.30 $41.46 $40.24 
Less: Net Unrealized Losses on Fixed Maturities
9.65 9.19 10.04 9.98 10.91 7.12 10.65 9.61 
Less: Change in Discount Rate on Future Life Policyholder Benefits
(5.98)(5.25)(5.82)(5.72)(5.96)(3.01)(5.56)(4.23)
Less: Goodwill
(21.32)(20.77)(19.66)(19.55)(19.59)(19.53)(19.41)(19.43)
Adjusted Book Value Per Share
$28.06 $28.55 $31.01 $30.31 $29.04 $27.88 $27.14 $26.19 
32