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First Quarter 2024 Financial Supplement

Investor Supplement

First Quarter 2024

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 and trends;
  • 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").

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 28-31.

Kemper Corporation

Investor Supplement

First Quarter 2024

Table of Contents

Page

Consolidated Financial Highlights

3-4

Consolidated Statements of Income (Loss)

5

Consolidated Balance Sheets

6-7

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 Income (Loss)

13

Adjusted Net Operating Income (Loss)

13

Catastrophe Frequency and Severity

14

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

15-16

Personal Automobile Insurance

17

Commercial Automobile Insurance

18

Life Insurance Segment - Results of Operations and Selected Financial Information

19-20

Expenses

21

Details of Investment Performance

22

Details of Invested Assets

23-24

Investment Concentration

25

Municipal Bond Securities

26

Investments in Limited Liability Companies and Limited Partnerships

27

Definitions ofNon-GAAPFinancial Measures

28-31

Kemper Corporation

Consolidated Financial Highlights

(Dollars in Millions, Except Per Share Amounts)

(Unaudited)

For Period Ended

Three Months Ended

Mar 31,

Dec 31,

Sep 30,

Jun 30,

Mar 31,

2024

2023

2023

2023

2023

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

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

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

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

Change in Fair Value of Equity and Convertible Securities................................................................................................................................

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

Investment and Other Income ..........................................................................................................................................................................

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

Net Income (Loss) ..............................................................................................................................................................................................

Less: Net Loss attributable to Noncontrolling Interest

Net Income (Loss) attributable to Kemper Corporation ...................................................................................................................................

Adjusted Consolidated Net Operating Income (Loss)1 ......................................................................................................................................

Per Unrestricted Common Share Amounts:

Basic:

Net Income (Loss) attributable to Kemper Corporation per Unrestricted Share:.......................................................................................

Adjusted Consolidated Net Operating Income (Loss)1.................................................................................................................................

Diluted:

Net Income (Loss) attributable to Kemper Corporation per Unrestricted Share:.......................................................................................

Adjusted Consolidated Net Operating Income (Loss)1.................................................................................................................................

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

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

Retuon Tangible Shareholders' Equity1 .........................................................................................................................................................

$ 1,031.9

100.4

0.4

1.8

3.4

5.1

111.1

$ 1,143.0

  • 70.2
    (1.1)
  • 71.3
  • 69.7
  • 1.11
  • 1.08
  • 1.10
  • 1.07
  • 0.31

11.2 %

17.2 %

$

1,063.8

$

1,117.8

$

1,166.9

$

1,180.9

104.6

107.0

106.3

101.8

0.6

0.8

0.8

0.7

1.9

2.4

1.7

1.2

(2.2)

2.8

2.4

1.7

18.5

(31.4)

(15.3)

8.5

123.4

81.6

95.9

113.9

$

1,187.2

$

1,199.4

$

1,262.8

$

1,294.8

$

51.3

$

(146.4)

$

(97.1)

$

(80.1)

(0.1)

(0.1)

-

-

$

51.4

$

(146.3)

$

(97.1)

$

(80.1)

$

50.5

$

(27.8)

$

(14.2)

$

(55.7)

$

0.80

$

(2.28)

$

(1.52)

$

(1.25)

$

0.79

$

(0.44)

$

(0.22)

$

(0.87)

$

0.80

$

(2.28)

$

(1.52)

$

(1.25)

$

0.78

$

(0.44)

$

(0.22)

$

(0.87)

$

0.31

$

0.31

$

0.31

$

0.31

8.4 %

(24.0)%

(15.1)%

(12.1)%

12.7 %

(35.4)%

(22.4)%

(17.7)%

3

Kemper Corporation

Consolidated Financial Highlights

(Dollars in Millions, Except Per Share Amounts)

(Unaudited)

At Period End

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

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

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

Kemper Corporation Shareholders' Equity........................................................................................................................................................

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

Tangible Book Value Per Share1,2.......................................................................................................................................................................

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

1Non-GAAP Financial Measure. See pages 28-31 for definition. 2See Capital Metrics on page 10 for detail calculations.

As of

Mar 31,

Dec 31,

Sep 30,

Jun 30,

Mar 31,

2024

2023

2023

2023

2023

$

12,625.9

$

12,742.7

$

12,549.3

$

13,096.3

$

13,403.7

$

5,891.5

$

6,102.9

$

5,822.6

$

6,043.9

$

6,120.7

$

1,389.8

$

1,389.2

$

1,388.6

$

1,388.1

$

1,387.5

$

2,589.8

$

2,505.2

$

2,361.3

$

2,512.2

$

2,646.9

$

40.24

$

39.08

$

36.85

$

39.22

$

41.37

$

26.19

$

25.39

$

24.94

$

26.66

$

27.61

34.9 %

35.7 %

37.0 %

35.6 %

34.4 %

4

Kemper Corporation

Consolidated Statements of Income (Loss)

(Dollars in Millions, Except Per Share Amounts)

(Unaudited)

Revenues:

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

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

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

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

Change in Fair Value of Equity and Convertible Securities................................................................................................................................

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

Impairment Losses.............................................................................................................................................................................................

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

Expenses:

Policyholders' Benefits and Incurred Losses and Loss Adjustment Expenses...................................................................................................

Insurance Expenses............................................................................................................................................................................................

Interest and Other Expenses .............................................................................................................................................................................

Goodwill Impairment.........................................................................................................................................................................................

Total Expenses ...................................................................................................................................................................................................

Income (Loss) before Income Taxes .................................................................................................................................................................

Income Tax (Expense) Benefit ...........................................................................................................................................................................

Net Income (Loss) ..............................................................................................................................................................................................

Less: Net (Loss) Income attributable to Noncontrolling Interest

Net Income (Loss) attributable to Kemper Corporation ...................................................................................................................................

Net Income (Loss) attributable to Kemper Corporation per Unrestricted Share:

Basic ...................................................................................................................................................................................................................

Diluted ...............................................................................................................................................................................................................

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

Weighted Average Unrestricted Common Shares Outstanding (in Millions).................................................................................................

Weighted-Average Unrestricted Shares and Equivalent Shares Outstanding Assuming Dilution (in Millions)............................................

Three Months Ended

Mar 31,

Dec 31,

Sep 30,

Jun 30,

Mar 31,

2024

2023

2023

2023

2023

$

1,031.9

$

1,063.8

$

1,117.8

$

1,166.9

$

1,180.9

100.4

104.6

107.0

106.3

101.8

0.4

0.6

0.8

0.8

0.7

1.8

1.9

2.4

1.7

1.2

3.4

(2.2)

2.8

2.4

1.7

6.6

19.7

(30.3)

(14.4)

6.4

(1.5)

(1.2)

(1.1)

(0.9)

2.1

1,143.0

1,187.2

1,199.4

1,262.8

1,294.8

756.0

808.1

975.2

984.7

1,052.0

240.7

258.0

259.0

266.1

269.3

59.7

57.6

156.0

78.3

77.4

-

-

-

49.6

-

1,056.4

1,123.7

1,390.2

1,378.7

1,398.7

86.6

63.5

(190.8)

(115.9)

(103.9)

(16.4)

(12.2)

44.4

18.8

23.8

70.2

51.3

(146.4)

(97.1)

(80.1)

(1.1)

(0.1)

(0.1)

-

-

$

71.3

$

51.4

$

(146.3)

$

(97.1)

$

(80.1)

$

1.11

$

0.80

$

(2.28)

$

(1.52)

$

(1.25)

$

1.10

$

0.80

$

(2.28)

$

(1.52)

$

(1.25)

$

0.31

$

0.31

$

0.31

$

0.31

$

0.31

64.255

64.088

64.057

64.009

63.947

64.773

64.566

64.057

64.009

63.947

5

Kemper Corporation

Consolidated Balance Sheets

(Dollars in Millions)

(Unaudited)

Mar 31,

Dec 31,

Sep 30,

Jun 30,

Mar 31,

2024

2023

2023

2023

2023

Assets:

Investments:

Fixed Maturities at Fair Value

$

6,771.6

$

6,881.9

$

6,474.5

$

6,943.8

$

7,189.4

Equity Securities at Fair Value

230.1

225.8

233.4

247.0

243.6

Equity Method Limited Liability Investments

215.2

221.7

224.1

225.1

218.7

Alternative Energy Partnerships

17.2

17.3

17.2

16.8

17.0

Short-termInvestments at Cost which Approximates Fair Value

520.7

520.9

418.5

406.3

278.4

Company-OwnedLife Insurance

515.7

513.5

506.9

500.5

595.3

Loans to Policyholders

280.5

281.2

281.8

281.6

283.1

Other Investments

213.6

241.9

273.1

275.6

271.8

Total Investments

8,764.6

8,904.2

8,429.5

8,896.7

9,097.3

Cash

125.9

64.1

110.0

73.6

60.6

Receivables from Policyholders

953.1

959.5

1,102.6

1,246.3

1,344.0

Other Receivables

195.4

200.5

223.4

262.0

249.4

Deferred Policy Acquisition Costs

595.3

591.6

622.2

646.2

651.5

Goodwill

1,250.7

1,250.7

1,250.7

1,250.7

1,300.3

Current Income Tax Assets

52.6

64.5

59.5

9.0

15.0

Deferred Income Tax Assets

199.1

210.4

258.5

208.0

166.0

Other Assets

479.1

492.6

488.7

503.8

519.6

Assets of Consolidated Variable Interest Entity:

Fixed Maturities at Fair Value

1.7

1.7

1.6

-

-

Cash

0.8

-

2.4

-

-

Short-termInvestments at Cost which Approximates Fair Value

4.0

2.0

-

-

-

Receivables from Policyholders

2.7

0.7

0.1

-

-

Deferred Policy Acquisition Costs

0.6

0.1

-

-

-

Other Assets

0.3

0.1

0.1

-

-

Total Assets

$

12,625.9

$

12,742.7

$

12,549.3

$

13,096.3

$

13,403.7

6

Kemper Corporation

Consolidated Balance Sheets

(Dollars in Millions)

(Unaudited)

Mar 31,

Dec 31,

Sep 30,

Jun 30,

Mar 31,

2024

2023

2023

2023

2023

Liabilities and Shareholders' Equity:

Insurance Reserves:

Life and Health

$

3,294.3

$

3,422.4

$

3,098.1

$

3,363.8

$

3,399.6

Property and Casualty

2,597.2

2,680.5

2,724.5

2,680.1

2,721.1

Total Insurance Reserves

5,891.5

6,102.9

5,822.6

6,043.9

6,120.7

Unearned Premiums

1,274.1

1,300.8

1,485.1

1,665.2

1,778.0

Policyholder Obligations

660.9

655.7

656.3

700.2

700.6

Deferred Income Tax Liabilities

61.7

50.6

57.8

-

-

Accrued Expenses and Other Liabilities

754.8

737.7

777.6

786.7

770.0

Long-termDebt, Current, at Amortized Cost

449.7

-

-

-

-

Long-termDebt,Non-Current,at Amortized Cost

940.1

1,389.2

1,388.6

1,388.1

1,387.5

Liabilities of Consolidated Variable Interest Entity:

Insurance Reserves

0.7

-

-

-

-

Unearned Premiums

3.1

0.5

0.1

-

-

Accrued Expenses and Other Liabilities

0.6

0.3

-

-

-

Total Liabilities

10,037.2

10,237.7

10,188.1

10,584.1

10,756.8

Kemper Corporation Shareholders' Equity:

Common Stock

6.4

6.4

6.4

6.4

6.4

Paid-inCapital

1,852.3

1,845.3

1,845.9

1,837.6

1,828.9

Retained Earnings

1,066.1

1,014.3

982.4

1,149.0

1,266.3

Accumulated Other Comprehensive Loss

(335.0)

(360.8)

(473.4)

(480.8)

(454.7)

Total Kemper Corporation Shareholders' Equity

2,589.8

2,505.2

2,361.3

2,512.2

2,646.9

Noncontrolling Interest

(1.1)

(0.2)

(0.1)

-

-

Total Shareholders' Equity

$

2,588.7

$

2,505.0

$

2,361.2

$

2,512.2

$

2,646.9

Total Liabilities and Shareholders' Equity

$

12,625.9

$

12,742.7

$

12,549.3

$

13,096.3

$

13,403.7

7

Kemper Corporation

Consolidated Statements of Cash Flows

(Dollars in Millions)

(Unaudited)

Three Months Ended

Mar 31,

Mar 31,

2024

2023

Cash Flows from Operating Activities:

Net Income (Loss)

$

70.2

$

(80.1)

Adjustments to Reconcile Net Income (Loss) to Net Cash Provided by Operating Activities

Net Realized Investment Gains

(6.6)

(6.4)

Impairment Losses

1.5

(2.1)

Depreciation and Amortization of Property, Equipment and Software

11.4

11.9

Amortization of Intangible Assets Acquired

3.2

4.3

Change in Accumulated Undistributed Earnings of Equity Method Limited Liability Investments

6.0

0.8

Income from Change in Value of Alternative Energy Partnership Investments

(0.4)

(0.7)

Income from Change in Value of Equity and Convertible Securities

(3.4)

(1.7)

Changes in:

Receivables from Policyholders

4.4

(57.4)

Reinsurance Recoverables

1.8

4.1

Deferred Policy Acquisition Costs

(4.2)

(15.9)

Insurance Reserves

(69.0)

(21.8)

Unearned Premiums

(24.1)

73.6

Income Taxes

26.9

106.2

Other Assets and Liabilities

25.3

(9.6)

Net Cash Provided by Operating Activities

43.0

5.2

Cash Flows from Investing Activities:

Proceeds from the Sales, Calls and Maturities of Fixed Maturities

323.2

154.0

Proceeds from the Sales or Paydowns of Investments:

Equity Securities

13.4

19.5

Mortgage Loans

34.1

18.6

Other Investments

3.5

2.6

Purchases of Investments:

Fixed Maturities

(286.9)

(293.3)

Equity Securities

(3.1)

(13.2)

Real Estate Investments

(0.2)

(0.2)

Company-OwnedLife Insurance

-

-

Mortgage Loans

(27.4)

(13.3)

Other Investments

(9.6)

(4.7)

Net Sales ofShort-termInvestments

2.4

0.7

Acquisition of Software andLong-livedAssets

(15.3)

(10.0)

Settlement Proceeds fromCompany-OwnedLife Insurance

4.9

-

Other

0.3

1.1

Net Cash Provided by (Used in) Investing Activities

39.3

(138.2)

8

Kemper Corporation

Consolidated Statements of Cash Flows

(Dollars in Millions)

(Unaudited)

Three Months Ended

Mar 31,

Mar 31,

2024

2023

Net Cash Provided by (Used in) Investing Activities (Carryforward from page 8)

$

39.3

$

(138.2)

Cash Flows from Financing Activities:

Proceeds from Policyholder Contract Obligations

25.5

89.3

Repayment of Policyholder Contract Obligations

(20.6)

(90.0)

Proceeds from Shares Issued under Employee Stock Purchase Plan

0.9

1.0

Dividends Paid

(19.5)

(19.4)

Other

(6.0)

0.3

Net Cash Used in Financing Activities

(19.7)

(18.8)

Net increase (decrease) in cash1

62.6

(151.8)

Cash, Beginning of Year1

64.1

212.4

Cash, End of Period1

$

126.7

$

60.6

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)

Mar 31,

Dec 31,

Sep 30,

Jun 30,

Mar 31,

2024

2023

2023

2023

2023

Book Value Per Share

Book Value Per Share

$

40.24

$

39.08

$

36.85

$

39.22

$

41.37

Tangible Book Value Per Share1

$

26.19

$

25.39

$

24.94

$

26.66

$

27.61

Debt and Total Capitalization

Debt

$

1,389.8

$

1,389.2

$

1,388.6

$

1,388.1

$

1,387.5

Kemper Corporation Shareholders' Equity

2,589.8

2,505.2

2,361.3

2,512.2

2,646.9

Total Capitalization

$

3,979.6

$

3,894.4

$

3,749.9

$

3,900.3

$

4,034.4

Ratio of Debt to Kemper Corporation Shareholders' Equity

53.7 %

55.5 %

58.8 %

55.3 %

52.4 %

Ratio of Debt to Total Capitalization

34.9 %

35.7 %

37.0 %

35.6 %

34.4 %

Debt

$

1,389.8

$

1,389.2

$

1,388.6

$

1,388.1

$

1,387.5

Kemper Corporation Shareholders' Equity

$

2,589.8

$

2,505.2

$

2,361.3

$

2,512.2

$

2,646.9

Less: Accumulated Other Comprehensive Loss

(335.0)

(360.8)

(473.4)

(480.8)

(454.7)

Kemper Corporation Shareholders' Equity Excluding Accumulated Other Comprehensive Loss

$

2,924.8

$

2,866.0

$

2,834.7

$

2,993.0

$

3,101.6

Total Capitalization Excluding Accumulated Other Comprehensive Loss

$

4,314.6

$

4,255.2

$

4,223.3

$

4,381.1

$

4,489.1

Ratio of Debt to Kemper Corporation Shareholders' Equity Excluding Accumulated Other Comprehensive Loss

47.5 %

48.5 %

49.0 %

46.4 %

44.7 %

Ratio of Debt to Total Capitalization Excluding Accumulated Other Comprehensive Loss

32.2 %

32.6 %

32.9 %

31.7 %

30.9 %

Parent Company Liquidity2

Kemper Holding Company Cash and Investments3

$

395.6

$

464.5

$

153.9

$

220.3

$

240.6

Borrowings Available Under Credit Agreement

424.0

393.0

376.0

460.0

520.0

Parent Company Liquidity

$

819.6

$

857.5

$

529.9

$

680.3

$

760.6

Capital Returned to Shareholders

Cash Dividends Paid4

$

19.5

$

20.2

$

20.2

$

20.2

$

19.4

1Non-GAAP Financial Measure. See pages 28-31 for definition. 2Excludes borrowings available from subsidiaries

3Includes Kemper's direct non-insurance subsidiaries

4Three Months Ended

10

Disclaimer

Kemper Corporation published this content on 01 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 01 May 2024 20:44:49 UTC.

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