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1Q 2023 Kemper Financial Supplement

Exhibit 99.2

Investor Supplement

First Quarter 2023

The financial statements and financial exhibits included herein are unaudited. This supplement recasts previously reported financial information for the provisions of Accounting Standards Update No. 2018-12, "Targeted Improvements to the Accounting for Long-Duration Contracts and related amendments" ("LDTI") adopted as of

January 1, 2023, with a transition date of January 1, 2021 under the modified retrospective method. 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;
  • changes in the interest rate environment;
  • 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").

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 33-34.

Kemper Corporation

Investor Supplement

First Quarter 2023

Table of Contents

Page

Consolidated Impacts of Adoption of Targeted Improvements to Accounting for Long-Duration Contracts

2

Consolidated Financial Highlights

3

Consolidated Statements of Loss

4

Consolidated Balance Sheets

5

Consolidated Statements of Cash Flows

6-7

Capital Metrics

8-9

Debt Outstanding, FHLB Advances and Ratings

10

Segment Summary Results:

Revenues

11

Operating Loss

12

Net Operating Loss

12

Catastrophe Frequency and Severity

13

Specialty Property & Casualty Insurance Segment - Results of Operations and Selected Financial Information

14-15

Personal Automobile Insurance

16

Commercial Automobile Insurance

17

Preferred Property & Casualty Insurance Segment - Results of Operations and Selected Financial Information

18-19

Personal Automobile Insurance

20

Homeowners and Other Personal Insurance

21

Homeowners Insurance

22

Other Personal Insurance

23

Life & Health Insurance Segment - Results of Operations and Selected Financial Information

24

Life Insurance

25

Accident and Health Insurance

25

Property Insurance

26

Expenses

27

Details of Investment Performance

28

Details of Invested Assets

29-30

Investment Concentration

31

Municipal Bond Securities

32

Investments in Limited Liability Companies and Limited Partnerships

33

Definitions ofNon-GAAPFinancial Measures

34-35

Kemper Corporation

Consolidated Impacts of Adoption of Targeted Improvements to Accounting for Long-Duration Contracts

(Dollars in Millions, Except Per Share Amounts)

(Unaudited)

The Company adopted LDTI on a modified retrospective basis as of January 1, 2023, such that those balances were adjusted to conform to ASU 2018-12 on January 1, 2021. As a result of the adoption of LDTI, beginning retained earnings was reduced by $25.1 million and Accumulated Other Comprehensive Income ("AOCI") was reduced by $1,030.3 million as of January 1, 2021.

The following summarizes the increase (decrease) to earnings and earnings per share as a result of the adoption of LDTI.

For the Three Months Ended

Dec 31,

Sep 30,

Jun 30,

Mar 31,

Dec 31,

Sep 30,

Jun 30,

Mar 31,

2022

2022

2022

2022

2021

2021

2021

2021

LDTI Impacts to Net Income (Loss)

$

2.2

$

1.4

$

2.5

$

8.5

$

8.2

$

(4.0)

$

(1.7)

$

(5.7)

LDTI Impacts to Adjusted Consolidated Net Income

(Loss)

$

2.2

$

1.4

$

2.5

$

8.5

$

8.2

$

(4.0)

$

(1.7)

$

(5.7)

LDTI Impact to Income (Loss) Per Unrestricted Share:

Basic - Net Income (Loss)

$

0.03

$

0.02

$

0.04

$

0.13

$

0.13

$

(0.06)

$

(0.03)

$

(0.09)

Basic - Adjusted Consolidated Net Income (Loss)

$

0.03

$

0.02

$

0.04

$

0.13

$

0.13

$

(0.06)

$

(0.03)

$

(0.09)

Diluted - Net Income (Loss)

$

0.03

$

0.02

$

0.04

$

0.13

$

0.13

$

(0.06)

$

(0.03)

$

(0.09)

Diluted - Adjusted Consolidated Net Income (Loss)

$

0.03

$

0.02

$

0.04

$

0.13

$

0.13

$

(0.06)

$

(0.03)

$

(0.09)

For the Year Ended

Dec 31,

Dec 31,

2022

2021

$

14.6

$

(3.2)

$

14.6

$

(3.2)

$

0.22

$

(0.05)

$

0.22

$

(0.05)

$

0.22

$

(0.05)

$

0.22

$

(0.05)

The following summarizes the increase (decrease) to Shareholders' Equity as a result of the adoption of LDTI.

As of

Dec 31,

Sep 30,

Jun 30,

Mar 31,

Dec 31,

Sep 30,

Jun 30,

Mar 31,

Jan 1,

2022

2022

2022

2022

2021

2021

2021

2021

2021

Retained Earnings

$

(13.7)

$

(15.9)

$

(17.3)

$

(19.8)

$

(28.3)

$

(36.5)

$

(32.5)

$

(30.8)

$

(25.1)

Changes in the Discount Rate on Future Life

Policyholder Benefits (AOCI)

241.1

272.8

11.4

(405.5)

(849.7)

(823.9)

(852.9)

(626.1)

(1,030.3)

Increase (Decrease) in Shareholders' Equity

$

227.4

$

256.9

$

(5.9)

$

(425.3)

$

(878.0)

$

(860.4)

$

(885.4)

$

(656.9)

$

(1,055.4)

Kemper Corporation

Consolidated Financial Highlights

(Dollars in Millions, Except Per Share Amounts)

(Unaudited)

For Period Ended

Earned Premiums.................................................................................................................................................................................................

Net Investment Income .......................................................................................................................................................................................

Change in Value of Alternative Energy Partnership Investments........................................................................................................................

Other Income .......................................................................................................................................................................................................

Income (Loss) from Change in Fair Value of Equity and Convertible Securities..................................................................................................

Net Realized Investment Gains (Losses) ..............................................................................................................................................................

Total Revenues.....................................................................................................................................................................................................

Net Loss................................................................................................................................................................................................................

Adjusted Consolidated Net Operating Loss1 ........................................................................................................................................................

Per Unrestricted Common Share Amounts:

Basic:

Net Loss ..........................................................................................................................................................................................................

Adjusted Consolidated Net Operating Loss1 ..................................................................................................................................................

Diluted:

Net Loss ..........................................................................................................................................................................................................

Adjusted Consolidated Net Operating Loss1 ..................................................................................................................................................

Dividends Paid to Shareholders Per Share...........................................................................................................................................................

At Period End

Total Assets ..........................................................................................................................................................................................................

Insurance Reserves ..............................................................................................................................................................................................

Debt......................................................................................................................................................................................................................

Shareholders' Equity ............................................................................................................................................................................................

Shareholders' Equity Excluding Goodwill1,2 .........................................................................................................................................................

Common Shares Issued and Outstanding (In Millions)........................................................................................................................................

Book Value Per Share2 .........................................................................................................................................................................................

Book Value Per Share Excluding Goodwill1,2 ........................................................................................................................................................

Book Value Per Share Excluding Net Unrealized (Gains) Losses on Fixed Maturities and Changes in the Discount Rate on Future Life

Policyholder Benefits1,2 ...................................................................................................................................................................................

Book Value Per Share Excluding Net Unrealized (Gains) Losses on Fixed Maturities, Changes in the Discount Rate on Future Life

Policyholder Benefits and Goodwill1,2 .............................................................................................................................................................

Debt to Total Capitalization2 ................................................................................................................................................................................

Rolling 12 Months Retuon5-pointAverage Shareholders Equity2,3 ...............................................................................................................

  • Non-GAAPFinancial Measure. See page 34 for definition.
    2 See Capital Metrics on pages 8-9 for detail calculations.

Three Months Ended

Mar 31,

Dec 31,

Sep 30,

Jun 30,

Mar 31,

2023

2022

2022

2022

2022

$

1,180.9

$

1,264.9

$

1,290.9

$

1,337.6

$

1,320.0

101.8

106.3

97.8

118.5

100.0

0.7

1.3

0.4

(4.9)

(16.7)

1.2

1.9

4.0

0.9

2.4

1.7

-

(11.2)

(40.5)

(28.2)

8.5

0.2

(20.4)

6.1

(7.4)

$

1,294.8

$

1,374.6

$

1,361.5

$

1,417.7

$

1,370.1

$

(80.1)

$

(53.3)

$

(74.8)

$

(72.2)

$

(86.3)

$

(65.2)

$

(24.4)

$

(29.1)

$

(37.2)

$

(51.6)

$

(1.25)

$

(0.84)

$

(1.17)

$

(1.13)

$

(1.36)

$

(1.02)

$

(0.38)

$

(0.46)

$

(0.58)

$

(0.81)

$

(1.25)

$

(0.84)

$

(1.17)

$

(1.13)

$

(1.36)

$

(1.02)

$

(0.38)

$

(0.46)

$

(0.58)

$

(0.81)

$

0.31

$

0.31

$

0.31

$

0.31

$

0.31

$

13,403.7

$

13,313.6

$

13,399.9

$

13,964.2

$

14,667.7

$

6,120.7

$

6,033.1

$

5,940.1

$

6,343.5

$

6,864.3

$

1,387.5

$

1,386.9

$

1,386.4

$

1,385.8

$

1,385.2

$

2,646.9

$

2,670.6

$

2,694.5

$

2,844.1

$

2,969.2

$

1,346.6

$

1,370.3

$

1,395.7

$

1,532.1

$

1,657.2

63.982

63.913

63.884

63.850

63.800

$

41.37

$

41.79

$

42.18

$

44.54

$

46.54

$

21.05

$

21.44

$

21.85

$

24.00

$

25.97

$

47.93

$

49.23

$

50.16

$

51.76

$

53.11

$

27.61

$

28.88

$

29.83

$

31.21

$

32.55

34.4 %

34.2 %

34.0 %

32.8 %

31.8 %

(10.1)%

(10.0)%

(11.1)%

(10.7)%

(9.9)%
  • Rolling 12 Months Retuon 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

Disclaimer

Kemper Corporation published this content on 08 May 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 08 May 2023 20:29:40 UTC.

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