2024 Annual Report

Kemper Corporation2024 Annual Report

KEMPER AT A GLANCE

The Kemper (NYSE: KMPR) family of companies is one of the nation's leading specialized insurers. With approximately $13 billion in assets, Kemper is improving the world of insurance by providing affordable and easy-to-use personalized solutions to individuals, families and businesses through its Kemper Auto and Kemper Life brands. Kemper serves over 4.7 million policies, is represented by 22,200 agents and brokers, and has approximately 7,400 associates who are dedicated to meeting the ever-changing needs of its customers.

Financial Highlights

Earned Premiums$ in millionsEarnings Per Diluted Share

Book Value Per Share

Net IncomeAdj. Net Operating

BVPSAdj. BVPS1

(Loss)

Income (Loss)1

$5.89

$49.14

$5,179

$5,213

$4.91

$43.68

$39.08

$4,216$33.99

$28.88

$29.04$25.39

$(0.74)

$(1.92)

$(1.82)

$(3.45)

$(4.25)

$(4.50)

2021

2022

2023

2024

2021

2022

2023

2024

2021

2022

2023

2024

Retuon Shareholders' Equity

Retuon EquityRetuon Adj. Equity1

Cash Flow From Operating Activities$ in millions

18.3%

11.9%

(3.6)%

(5.0)%

(10.0)%

$(210)

(14.4)%

(15.9)%

2021

2022

2023

2024

2021

2022

2023

2024

1Adjusted Consolidated Net Operating Income (Loss) Per Unrestricted Share, Book Value Per Share Excluding Net Unrealized Losses on Fixed Maturities and Changes in the Discount Rate on Future Life Policyholder Benefits, and Retuon Tangible Shareholders' Equity are non-GAAP measures of performance. Refer to the Investor Supplement for more information.

TO OUR SHAREHOLDERS,

At Kemper, we continue to deliver on our promise to empower growing specialty and underserved markets with affordable and easy-to-use insurance solutions to help meet the needs of our customers while creating long-term value for our shareholders. Our mission is achieved through the creation and cultivation of systematic, sustainable competitive advantages (SSCAs), which have proven resilient in navigating both routine and challenging times.

Delivering on Our Growth Plan

Our retuto strong, profitable growth was driven directly by the SSCAs we established. While the three prior years presented significant challenges, with our financial performance impacted by economic and market imbalances caused by the pandemic, we had confidence in the strength of our team and capabilities, knowing we were well positioned to restore balance, even if it would take time. The strategic actions we implemented to address this imbalance culminated in a retuto underwriting profitability at the end of 2023, as we had promised.

Following this milestone and with further visibility into future margins, we shifted our focus to driving profitable growth. In 2024, we began selectively removing non-rate actions to accelerate the growth of our Specialty P&C business. This strategy resulted in three consecutive quarters of policy-in-force growth, leading to our first year-over-year increase in policies in force since the fourth quarter of 2021.

Joseph P. Lacher, Jr.

President and

Chief Executive Officer Kemper Corporation

2024 was a pivotal year, with Kemper returning to strong operating performance. We generated net income of $318 million, or $4.91 per diluted share, compared to a net loss of $272 million, or ($4.25) per diluted share, in 2023. Adjusted consolidated net operating income1was $382 million, or $5.89 per diluted share, up from an adjusted consolidated net operating loss1of $47 million, or ($0.74) per diluted share, in 2023. These results led to a

1Non-GAAP financial measure. All Non-GAAP financial measures are denoted with footnote 1. See "Use of Non-GAAP Financial Measures" within the Investor Supplement for additional information.

2Kemper2024 Annual Report

12% increase in book value per share, a 14% increase in adjusted book value per share, a 12% retuon shareholders' equity, and an 18% retuon adjusted shareholders' equity.

Our insurance companies remain well-capitalized, with substantial sources of liquidity. As of the end of 2024, we held $1.3 billion in holding company liquidity, ensuring our ability to pay dividends and interest on holding company debt, while also providing support to our operating subsidiaries as needed.

As we move through 2025, we will continue to deliver on our promise of empowering growing specialty and underserved markets with affordable, easy-to-use insurance solutions, while creating long-term value for our shareholders.

In Specialty Auto, we are uniquely positioned to drive significant profitable growth in the years ahead by continuing to cultivate our SSCAs. These advantages include our ability to effectively serve a broad range of customers, including the unique needs of Hispanic and Latino drivers. Our deep understanding of this market, coupled with tailored products and responsive service, strengthens our competitive position while allowing us to meet the evolving needs of all the communities we serve.

In the Life segment, we expect to maintain consistent, diversified income and cash flow. What sets us apart is our relationship-driven approach, with a dedicated career agent force that provides personalized service where customers need it most-often in their homes. These agents develop long-standing relationships with policyholders, fostering trust, accessibility and a high level of service that strengthens customer loyalty and reinforces our market position.

Long-term financial stability remains a cornerstone of our strategy. With the announced redemption and retirement in early 2025 of the $450 million of 4.35% senior notes, we further enhanced our balance sheet and financial flexibility. Our insurance businesses remain well-capitalized, and we maintain a healthy liquidity position.

Creating long-term value for our shareholders goes hand-in-hand with serving our customers and communities with care and integrity. Throughout 2025, we will continue to execute on our strategy with discipline, driving sustainable growth and making a positive impact in the markets we serve.

We are deeply grateful to our shareholders, employees and customers for their trust and support in Kemper, especially through the challenges of recent years. With a strong foundation and strategic focus, we are confident in our ability to deliver significant profitable growth in the years ahead.

President and Chief Executive Officer Kemper Corporation

Supporting our communities-Kemper Auto team members connected with local residents at the Tweedy Street Fair in South Gate, California, partnering with Griffith Insurance to provide valuable resources.

At Kemper, our commitment to responsible business practices is rooted in our ownership culture and dedication to those we serve. We prioritize delivering a strong customer experience, fostering a workplace where employees thrive, and making a meaningful impact in our communities. Through our governance framework, we maintain transparency, accountability, and sound decision-making to ensure the long-term success of our company and stakeholders.

Supporting Our Customers

Our ability deliver on the needs of those in underserved markets is at the heart of our business. We are committed to delivering quality products and services that meet our customers' needs, enhance their financial security, and provide peace of mind. We continually invest in digital solutions, customer support, and operational improvements to create a seamless and reliable experience.

Investing in Our People

Our employees are the foundation of our success. We foster an environment where individuals can grow, develop and contribute meaningfully to our business. Key priorities include:

• •Talent Development:Providing opportunities for learning, leadership and career advancement.

• •Performance and Recognition:Encouraging excellence through a strong performance-driven culture.

• •Workplace Connection:Supporting engagement through purposeful collaboration and a dynamic work environment.

Making a Difference in Our Communities

Supporting the communities where we live and work is an essential part of who we are. Through corporate philanthropy, employee volunteerism, and financial contributions, we invest in programs that create lasting positive impact. We focus on initiatives that align with our mission, particularly those that support education, health and community development.

Strong Governance and Accountability

Earning and maintaining trust is fundamental to our business. We uphold rigorous corporate governance standards to ensure ethical conduct, transparency, and sound decision-making.

Oversight of our Corporate Responsibility efforts is provided by the Governance Committee of Kemper's Board of Directors, reinforcing alignment with our strategic priorities.

By maintaining a disciplined approach to governance, investing in our people, and supporting our customers and communities, we continue to build a strong and responsible company that creates lasting value for all those we serve.

6Kemper2024 Annual Report

Enriching The Communities We Serve

Kemper is committed to building stronger communities through education, health, and community development. We create lasting impact through our own initiatives, strategic partnerships, charitable contributions, and employee generosity. In 2024, our combined philanthropic efforts with The Kemper Foundation totaled over $2.27 million, supporting nonprofits through donations, grants, sponsorships, and matching gifts.

Our employees contributed more than $66,000 and volunteered approximately 3,200 hours to support their communities. Giving back is a core part of who we are. We're proud of the positive impact made in 2024 and remain dedicated to driving meaningful change in the years to come.

EDUCATION

Education is key to long-term success. Together with The Kemper Foundation, we are committed to strengthening communities in our largest underserved markets. Through targeted programs, we provide financial support to schools and teachers with the greatest need, while nurturing emerging talent and developing future business leaders.

Kemper Scholars Program

The Kemper Scholars Program provides need-based scholarships, funding for student organizations, and support for academic research through partnerships with 10 colleges and universities, including six Historically Black Colleges and Universities and Hispanic-Serving Institutions. In 2024, the program awarded nearly $1 million in scholarships, faculty grants, and student organization funding. Additionally, Kemper Corporation partnered with the Foundation to offer year-round internships for Kemper Scholar interns across our offices nationwide.

Read Conmigo Grant Program

The Read Conmigo Grant Program supports Hispanic and Latino students in developing critical biliteracy skills, preparing them for success in an interconnected world. The Read Conmigo Educator Grants provide $3,000 to public and charter elementary school educators in dual-language (Spanish-English) programs, funding classroom resources and/or professional development. Educators report measurable improvements in students' biliteracy skills through formal and informal assessments.

In 2024, The Kemper Foundation awarded $297,000 to 99 educators, primarily in Title I schools in the Dallas, Greater Los Angeles, and Miami areas. Since 2022, the program has granted $750,000 to advance dual-language education for nearly 7,500 bilingual students.

Building on this success, The Kemper Foundation announced in December 2024 the expansion of the Read Conmigo Grant Program. Launching in 2025, the Read Conmigo School Impact Grants will provide $10,000 grants to Title I elementary schools to support school- or program-wide dual-language initiatives.

HEALTH

To help combat common and challenging diseases, Kemper funds national organizations focused on medical research, health education, and improving patient and caregiver outcomes. Through corporate contributions and employee initiatives, we proudly support programs that positively impact communities nationwide.

American Cancer Society

As a strong advocate for cancer research, education and patient care, Kemper is a proud supporter of the American Cancer Society and its mission to improve the lives of people affected by cancer. In 2024, our employees led fundraisers for cancer awareness events such as Relay For Life, Men Wear Pink and Making Strides Against Breast Cancer. They also

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volunteered at Hope Lodges, providing free housing to patients and their families during treatment. Kemper also sponsored ACS' mission driven events, including Taste of Hope, the Discovery Ball, and ResearcHers, a campaign dedicated to innovative women-led cancer research. In total, our collective impact in 2024 exceeded $123,000.

Kemper proudly champions Breakthrough T1D, formerly JDRF, the leading global type 1 diabetes (T1D) research and advocacy organization helping make everyday life with T1D better while driving toward cures. In 2024, through charitable contributions and employee volunteerism, we supported Breakthrough T1D's Early Detection Program, expanding access to screening in rural and medically underserved communities in partnership with local clinics. Through this initiative, more than 1,200 individuals received T1D autoantibodies screenings in 2024. We also participated in Breakthrough T1D walks in multiple cities, reinforcing our commitment to raising awareness and funding research. Our collective impact in 2024 was over $136,000.

American Heart Association

Kemper is proud to support the American Heart Association's programs in Chicago and its mission to promote longer, healthier lives by combating heart disease and stroke. As part of the AHA's Nation of Lifesavers Initiative, we played a key role in supporting the distribution of CPR Anytime and Anywhere kits to high-risk communities. Kemper's support has allowed the American Heart Association to provide CPR education to over 3,000 individuals in Dallas, Los Angeles, and Miami in 2024. We also supported women's heart health awareness through the AHA's Go Red for Women movement, with employees organizing fundraisers and participating in National Wear Red Day. Additionally, our employees mentored young women through the STEM Goes Red program, inspiring the next

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Kemper Corporation published this content on March 26, 2025, and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on March 26, 2025 at 15:35:32.000.