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Kemper (NYSE: KMPB) posts Q1 2026 loss as auto insurance margins weaken

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Rhea-AI Filing Summary

Kemper Corporation reported a weak first quarter of 2026, swinging to a small net loss as its personal auto business deteriorated. Net loss was $1.7 million, or $(0.03) per share, compared with net income of $99.7 million, or $1.54 per diluted share, a year earlier.

Adjusted Consolidated Net Operating Income fell to $12.5 million, or $0.21 per share, from $106.4 million, or $1.65 per diluted share. Total revenues declined to $1,107.2 million from $1,193.0 million, mainly due to lower Specialty Personal Automobile volumes, a $28.0 million Florida statutory profit limit refund, and runoff in Non-Core Operations.

The Specialty Property & Casualty segment’s adjusted net operating income dropped to $0.1 million from $97.9 million, driven by an increase in Specialty Personal Automobile underlying loss and LAE ratio to 87.7% from 70.1%, and a combined ratio of 110.9%. By contrast, Specialty Commercial Automobile earned premiums rose to $238.2 million, with an underlying combined ratio of 92.4%. The Life segment generated adjusted net operating income of $18.0 million, up from $17.2 million.

Shareholders’ equity was $2,649.6 million as of March 31, 2026, with book value per share of $45.05 and adjusted book value per share of $27.79. Kemper highlighted restructuring initiatives, citing $60 million of run-rate savings identified and $50 million already actioned, and paid a quarterly dividend of $0.32 per share.

Positive

  • None.

Negative

  • Profitability deteriorated sharply, with Kemper swinging from Q1 2025 net income of $99.7 million to a Q1 2026 net loss of $1.7 million and adjusted net operating income falling from $106.4 million to $12.5 million.
  • Specialty Personal Automobile results weakened significantly, as the underlying loss and LAE ratio rose to 87.7% from 70.1% and the combined ratio climbed to 110.9%, driving Specialty Property & Casualty adjusted net operating income down to $0.1 million from $97.9 million.

Insights

Kemper’s Q1 2026 shows a sharp profit deterioration driven by personal auto, partly offset by solid commercial and life results.

Kemper moved from net income of $99.7 million in Q1 2025 to a net loss of $1.7 million in Q1 2026. Adjusted Consolidated Net Operating Income dropped to $12.5 million from $106.4 million, reflecting pressure in the Specialty Property & Casualty segment.

The key drag is Specialty Personal Automobile, where the underlying loss and LAE ratio rose to 87.7% from 70.1%, and the combined ratio reached 110.9%. Management attributes this to higher claim severity and frequency in California, lower volumes, and a $28.0 million Florida statutory profit limit refund, partly offset by rate increases.

Other areas are performing better. Specialty Commercial Automobile grew earned premiums to $238.2 million and delivered an underlying combined ratio of 92.4%. The Life segment’s adjusted net operating income improved to $18.0 million. Capital remains reasonable with shareholders’ equity of $2,649.6 million and debt-to-total-capitalization of 26.3%. Restructuring initiatives targeting $60 million of run-rate savings, with $50 million already actioned, are intended to restore profitability, though execution and the pace of improvement in California personal auto will be important factors in future results.

Item 2.02 Results of Operations and Financial Condition Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01 Financial Statements and Exhibits Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Net (Loss) Income $(1.7) million Three months ended March 31, 2026 vs $99.7 million in 2025
Adjusted Consolidated Net Operating Income $12.5 million Q1 2026 vs $106.4 million in Q1 2025
Total Revenues $1,107.2 million Q1 2026 vs $1,193.0 million in Q1 2025
Specialty P&C Adjusted Net Operating Income $0.1 million Q1 2026 vs $97.9 million in Q1 2025
Specialty Personal Auto Combined Ratio 110.9% Q1 2026 combined ratio based on earned premiums
Specialty Commercial Auto Underlying Combined Ratio 92.4% Q1 2026, indicates profitable core underwriting
Book Value Per Share $45.05 As of March 31, 2026 vs $45.71 at Dec 31, 2025
Debt to Total Capitalization 26.3% As of March 31, 2026
Adjusted Consolidated Net Operating Income financial
"Adjusted Consolidated Net Operating Income1 was $12.5 million, or $0.21 per share, for the first quarter of 2026"
Adjusted consolidated net operating income is a company’s total operating profit across all subsidiaries after removing one-time items and accounting distortions so the number reflects ongoing business results. Investors use it like a cleaned-up monthly paycheck—by stripping out unusual gains, losses, interest and taxes, it shows the recurring earning power of the core operations and helps compare performance across periods and peers when valuing the business.
Underlying Combined Ratio financial
"Specialty Commercial Automobile grew PIF at 10% YoY while producing an Underlying Combined Ratio1 of 92.4%"
The underlying combined ratio is an insurer’s core underwriting profit measure: it compares claims paid plus operating costs to premiums earned, after removing one-off or unusual items (like major catastrophe losses, reserve adjustments or accounting timing effects). It matters to investors because it reveals the steady, repeatable strength of an insurer’s business—like a car’s average fuel efficiency when you ignore a single outlier trip—helping separate true performance from temporary noise.
Non-Core Operations financial
"a $12.7 million reduction in earned premiums from Non-Core Operations given the run-off of the Preferred Insurance business"
Catastrophe Losses and LAE financial
"Impact of Catastrophe Losses and Related Loss Adjustment Expense (LAE) on Net (Loss) Income"
Return on Adjusted Shareholders' Equity financial
"Return on Adjusted Shareholders' Equity1 is a calculation that uses a non-GAAP financial measure"
Total Revenues $1,107.2 million
Net (Loss) Income attributable to Kemper Corporation $(1.7) million
Adjusted Consolidated Net Operating Income $12.5 million
Diluted Adjusted Net Operating Income per Share $0.21
Understanding 8-K Material Events →
0000860748false00008607482026-05-062026-05-060000860748us-gaap:CommonStockMember2026-05-062026-05-060000860748kmpr:A5875FixedRateResetJuniorSubordinatedDebenturesDue2062Member2026-05-062026-05-06

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
Form 8-K
 
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): May 6, 2026 
Kemper Corporation
(Exact name of registrant as specified in its charter)
 
Commission File Number: 001-18298
 
DE 95-4255452
(State or other jurisdiction
of incorporation)		 (IRS Employer
Identification No.)
200 E. Randolph Street, Suite 3300, Chicago, IL 60601
(Address of principal executive offices, including zip code)
312-661-4600
(Registrant’s telephone number, including area code)
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the Registrant under any of the following provisions (see General Instruction A.2.below):
☐Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock, par value $0.10 per shareKMPRNYSE
5.875% Fixed-Rate Reset Junior Subordinated Debentures due 2062KMPBNYSE

Indicate by check mark whether the registrant is an emerging growth company as defined in as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging Growth Company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition
period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of
the Exchange Act.    ¨


Section 2. – Financial Information
Item 2.02.Results of Operations and Financial Condition.
On May 6, 2026, Kemper Corporation ("Kemper" or the "Registrant") issued a press release announcing its financial results for the first quarter of 2026 and the availability of Kemper’s first quarter investor supplement and earnings call presentation on its website, kemper.com. The press release, the investor supplement and the earnings call presentation are furnished as Exhibits 99.1, 99.2 and 99.3, respectively, to this report.
Section 9. – Financial Statements and Exhibits.
Item 9.01.Financial Statements and Exhibits.
(d) Exhibits

99.1 Registrant’s press release dated May 6, 2026.
99.2 First Quarter 2026 Investor Supplement of Kemper Corporation.
99.3 First Quarter 2026 Earnings Call Presentation.


SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
  Kemper Corporation
Date:May 6, 2026/s/    BRADLEY T. CAMDEN
 Bradley T. Camden
 Executive Vice President and Chief Financial Officer (Principal Financial Officer)


Exhibit 99.1
 

kemperlogocolorwebfinala05a.jpg
Kemper Corporation
200 East Randolph Street
Suite 3300
Chicago, IL 60601
kemper.com

Press Release
Kemper Reports First Quarter 2026 Operating Results*
CHICAGO, May 6, 2026 — Kemper Corporation (NYSE: KMPR) reported a net loss of $1.7 million, or $(0.03) per share, for the first quarter of 2026, compared to net income of $99.7 million, or $1.54 per diluted share, for the first quarter of 2025.

Adjusted Consolidated Net Operating Income1 was $12.5 million, or $0.21 per share, for the first quarter of 2026, compared to Adjusted Consolidated Net Operating Income1 of $106.4 million, or $1.65 per diluted share, for the first quarter of 2025.
Summary of quarterly performance:
•Adjusted Consolidated Net Operating Income1 of $12.5 million or $0.21 per share
•Specialty Personal Automobile’s operating results impacted by losses in California; taking rate and non-rate actions to improve profitability
•Specialty Commercial Automobile grew PIF at 10% YoY while producing an Underlying Combined Ratio1 of 92.4%
•Life business generated solid results driven by underwriting performance and management actions
•Restructuring initiatives well underway with $60 million run-rate savings identified and $50 million already actioned


“Our results this quarter reflect continued pressure in parts of the business, particularly California personal auto, while other areas of the portfolio are performing well and contributing positively,” said C. Thomas Evans, Jr., Interim CEO. “This includes strong results in our commercial auto business and continued personal auto diversification into key markets like Florida and Texas. We are taking decisive actions across underwriting, claims, and expense to return the business to profitability and drive more consistent performance over time.”



*Unless otherwise specified, discussion of our first quarter 2026 results is focused on net income attributable to Kemper Corporation common shareholders, which does not include financial results from Kemper Reciprocal that are presented within the condensed consolidated financial results in this release. The results of Kemper Reciprocal are consolidated under US GAAP.
1 Non-GAAP financial measure. All Non-GAAP financial measures are denoted with footnote 1 throughout this release. See “Use of Non-GAAP Financial Measures” for additional information.




 Three Months Ended
(Dollars in Millions, Except Per Share Amounts) (Unaudited)Mar 31,
2026		Mar 31,
2025
Net (Loss) Income$(1.7)$99.7 
Adjusted Consolidated Net Operating Income1
$12.5 $106.4 
Impact of Catastrophe Losses and Related Loss Adjustment Expense (LAE) on Net (Loss) Income
$(3.0)$(5.6)
Diluted Net (Loss) Income Per Share From:
Net (Loss) Income$(0.03)$1.54 
Adjusted Consolidated Net Operating Income1
$0.21 $1.65 
Impact of Catastrophe Losses and Related LAE on Net (Loss) Income Per Share
$(0.05)$(0.09)
Revenues
Total revenues for the first quarter of 2026 decreased $85.8 million to $1,107.2 million compared to the first quarter of 2025. The decline was primarily due to lower Specialty Personal Automobile volumes, a $28.0 million Florida Statutory Profit Limit Refund in the Specialty Property & Casualty Insurance segment, and a $12.7 million reduction in earned premiums from Non-Core Operations given the run-off of the Preferred Insurance business.




2

Segment Results
Unless otherwise noted, (i) the segment results discussed below are presented on an after-tax basis, (ii) prior-year development includes both catastrophe and non-catastrophe losses and LAE, (iii) catastrophe losses and LAE exclude the impact of prior-year development, (iv) loss ratio includes loss and LAE, and (v) all comparisons are made to the prior year quarter unless otherwise stated.
Three Months Ended
(Dollars in Millions) (Unaudited)Mar 31,
2026		Mar 31,
2025
Segment Adjusted Net Operating Income:
Specialty Property & Casualty Insurance$0.1 $97.9 
Life Insurance18.0 17.2 
Total Segment Adjusted Net Operating Income18.1 115.1 
Corporate and Other Adjusted Net Operating Loss(8.3)(11.4)
Less: Net Loss attributable to Noncontrolling Interest(2.7)(2.7)
Adjusted Consolidated Net Operating Income1
12.5 106.4 
Net (Loss) Income From:
Change in Fair Value of Equity and Convertible Securities
(1.0)0.1 
Net Realized Investment Gains0.3 0.7 
Impairment Losses(1.3)0.2 
Acquisition and Disposition Related Transaction, Integration, Restructuring and Other Costs(5.0)(4.2)
Debt Extinguishment, Pension Settlement and Other Charges
— 0.4 
Non-Core Operations(7.2)(3.9)
Net (Loss) Income attributable to Kemper Corporation
$(1.7)$99.7 
The Specialty Property and Casualty Insurance segment reported adjusted net operating income of $0.1 million in the first quarter of 2026, compared to adjusted net operating income of $97.9 million in the first quarter of 2025. This decrease was due primarily to an increase in our Specialty Personal Automobile Underlying loss and LAE ratio1. Specialty Personal Automobile’s Underlying loss and LAE ratio1 was 87.7 percent, compared to 70.1 percent in the first quarter of 2025. The increase was primarily driven by higher claim severity and frequency in California, lower business volumes, as well as a $28.0 million Florida Statutory Profit Limit Refund, partially offset by higher average earned premiums per exposure resulting from rate increases.

The Life Insurance segment reported adjusted net operating income of $18.0 million for the first quarter of 2026, compared to adjusted net operating income of $17.2 million in the first quarter of 2025. The improvement was primarily driven by lower Insurance Expenses and higher Earned Premiums, partially offset by higher Policyholders’ Benefits from life insurance products.

3

Capital
Total Kemper Corporation Shareholders’ Equity as of March 31, 2026 was $2,649.6 million, a decrease of $31.8 million, or 1 percent, since year-end 2025 primarily driven by comprehensive losses and dividend payments. Kemper and its direct non-insurance subsidiaries ended the quarter with cash and investments of $80.2 million, and $600.0 million of available borrowing capacity under the revolving credit agreement.

On February 4, 2026, Kemper announced that its Board of Directors declared a quarterly dividend of $0.32 per share, or $18.3 million. The dividend was paid on March 3, 2026, to its shareholders of record as of February 17, 2026.
Kemper ended the quarter with a book value per share of $45.05, a decrease of 1 percent from $45.71 at the end of 2025. Adjusted book value per share1 was $27.79 at the end of the quarter, compared to $28.06 at the end of 2025.
4

Unaudited Condensed Consolidated Statements of (Loss) Income for the three months ended March 31, 2026 and 2025 are presented below.
Three Months Ended
(Dollars in Millions, Except Per Share Amounts)Mar 31,
2026		Mar 31,
2025
Revenues:
Earned Premiums2
$999.3 $1,087.9 
Net Investment Income107.1 101.2 
Other Income3.4 2.6 
Change in Fair Value of Equity and Convertible Securities
(1.3)0.1 
Net Realized Investment Gains0.4 0.9 
Impairment Losses(1.7)0.3 
Total Revenues1,107.2 1,193.0 
Expenses:
Policyholders’ Benefits and Incurred Losses and Loss Adjustment Expenses3
828.8 767.3 
Insurance and Other Expenses277.0 294.5 
Interest Expense9.3 11.4 
Total Expenses1,115.1 1,073.2 
(Loss) Income before Income Taxes(7.9)119.8 
Income Tax (Benefit) Expense(3.5)22.8 
Net (Loss) Income(4.4)97.0 
Less: Net Loss attributable to Noncontrolling Interest(2.7)(2.7)
Net (Loss) Income attributable to Kemper Corporation
$(1.7)$99.7 
Net (Loss) Income attributable to Kemper Corporation per Unrestricted Share:
Basic$(0.03)$1.56 
Diluted$(0.03)$1.54 
Weighted-average Outstanding (Shares in Thousands):
Unrestricted Shares - Basic58,742.8 63,886.7 
Unrestricted Shares and Equivalent Shares - Diluted58,742.8 64,652.8 
Dividends Paid to Shareholders per Share$0.32 $0.32 
2 Includes a remeasurement gain related to the deferred profit liability within the Life insurance business of $0.9 million and $0.2 million for the three months ended March 31, 2026 and 2025, respectively.
3 Includes a remeasurement gain of $0.4 million and a remeasurement loss of $0.2 million related to the liability for future policyholder benefits within the Life insurance business for the three months ended March 31, 2026 and 2025, respectively.



5

Unaudited business segment revenues for the three months ended March 31, 2026 and 2025 are presented below.
Three Months Ended
(Dollars in Millions)Mar 31,
2026		Mar 31,
2025
REVENUES:
Specialty Property & Casualty Insurance:
Earned Premiums:
Personal Automobile$647.0 $753.7 
Commercial Automobile238.2 208.5 
Total Earned Premiums885.2 962.2 
Net Investment Income55.3 50.5 
Other Income2.7 1.3 
Total Specialty Property & Casualty Insurance Revenues943.2 1,014.0 
Life Insurance:
Earned Premiums:
Life
85.6 83.7 
Accident & Health5.3 5.5 
Property9.9 10.5 
Total Earned Premiums100.8 99.7 
Net Investment Income48.7 48.4 
Other Income0.3 0.7 
Total Life Insurance Revenues149.8 148.8 
Total Segment Revenues1,093.0 1,162.8 
Change in Fair Value of Equity and Convertible Securities
(1.3)0.1 
Non-Core Operations15.4 27.9 
Net Realized Investment Gains, Impairment Losses, and Other2
0.1 2.2 
Total Revenues$1,107.2 $1,193.0 
2 In 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.
6

KEMPER CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in Millions)
(Unaudited)

Mar 31,
2026		Dec 31,
2025
Assets:
Investments:
Fixed Maturities at Fair Value
$6,672.2 $6,743.3 
Equity Securities at Fair Value
308.4 306.4 
Equity Method Limited Liability Investments176.1 176.0 
Short-term Investments at Cost which Approximates Fair Value296.6 313.5 
Company-Owned Life Insurance
586.2 579.2 
Loans to Policyholders
279.6 279.9 
Other Investments283.9 271.3 
Total Investments
8,603.0 8,669.6 
Cash
92.1 124.3 
Receivables from Policyholders
997.1 965.2 
Other Receivables
185.3 184.7 
Deferred Policy Acquisition Costs
669.6 655.4 
Goodwill
1,250.7 1,250.7 
Current Income Tax Assets
40.2 40.7 
Deferred Income Tax Assets95.2 96.9 
Other Assets
406.2 410.7 
Assets of Consolidated Variable Interest Entity
Fixed Maturities at Fair Value47.2 42.1 
Short-term Investments at Cost which Approximates Fair Value9.2 14.4 
Cash0.5 1.7 
Receivables from Policyholders7.7 10.4 
Other Receivables
0.5 0.4 
Deferred Policy Acquisition Costs1.0 1.3 
Deferred Income Tax Assets5.0 4.2 
Total Assets$12,410.5 $12,472.7 



















7

KEMPER CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS (Continued)
(Dollars in Millions)
(Unaudited)
Mar 31,
2026		Dec 31,
2025
Liabilities and Shareholders’ Equity:
Insurance Reserves:
Life & Health$3,238.9 $3,287.5 
Property & Casualty
2,999.5 2,910.8 
Total Insurance Reserves
6,238.4 6,198.3 
Unearned Premiums
1,274.1 1,233.1 
Policyholder Obligations568.2 608.0 
Deferred Income Tax Liabilities
4.3 14.8 
Accrued Expenses and Other Liabilities
702.4 762.6 
Long-term Debt, Non-current, at Amortized Cost944.0 943.5 
Liabilities of Consolidated Variable Interest Entity
Insurance Reserves31.8 29.4 
Unearned Premiums9.9 12.1 
Accrued Expenses and Other Liabilities2.3 1.5 
Total Liabilities9,775.4 9,803.3 
Kemper Corporation Shareholders’ Equity:
Common Stock
5.9 5.9 
Paid-in Capital
1,732.6 1,723.9 
Retained Earnings
1,137.8 1,157.8 
Accumulated Other Comprehensive Loss(226.7)(206.2)
Total Kemper Corporation Shareholders’ Equity2,649.6 2,681.4 
Noncontrolling Interest(14.5)(12.0)
Total Shareholders’ Equity2,635.1 2,669.4 
Total Liabilities and Shareholders’ Equity$12,410.5 $12,472.7 
8

Unaudited selected financial information for the Specialty Property & Casualty Insurance segment follows.
Three Months Ended
(Dollars in Millions)Mar 31,
2026		Mar 31,
2025
Results of Operations
Net Premiums Written$925.0 $1,068.8 
Earned Premiums$885.2 $962.2 
Net Investment Income55.3 50.5 
Other Income2.7 1.3 
Total Revenues943.2 1,014.0 
Incurred Losses and LAE related to:
Current Year:
Non-catastrophe Losses and LAE742.8 682.3 
Catastrophe Losses and LAE1.3 3.8 
Prior Years:
Non-catastrophe Losses and LAE3.2 0.5 
Catastrophe Losses and LAE0.4 0.2 
Total Incurred Losses and LAE747.7 686.8 
Insurance Expenses196.2 205.1 
Segment Adjusted Operating (Loss) Income(0.7)122.1 
Income Tax (Benefit) Expense(0.8)24.2 
Total Segment Adjusted Net Operating Income$0.1 $97.9 
Ratios Based On Earned Premiums
Current Year Non-catastrophe Losses and LAE Ratio84.0 %70.9 %
Current Year Catastrophe Losses and LAE Ratio0.1 0.4 
Prior Years Non-catastrophe Losses and LAE Ratio0.4 0.1 
Prior Years Catastrophe Losses and LAE Ratio— — 
Total Incurred Loss and LAE Ratio84.5 71.4 
Insurance Expense Ratio22.2 21.3 
Combined Ratio106.7 %92.7 %
Underlying Combined Ratio1
Current Year Non-catastrophe Losses and LAE Ratio84.0 %70.9 %
Insurance Expense Ratio22.2 21.3 
Underlying Combined Ratio1
106.2 %92.2 %
Non-GAAP Measure Reconciliation
Combined Ratio106.7 %92.7 %
Less:
Current Year Catastrophe Losses and LAE Ratio0.1 0.4 
Prior Years Non-catastrophe Losses and LAE Ratio0.4 0.1 
Prior Years Catastrophe Losses and LAE Ratio— — 
Underlying Combined Ratio1
106.2 %92.2 %
9

Unaudited selected financial information for the Life Insurance segment follows.
Three Months Ended
(Dollars in Millions)Mar 31,
2026		Mar 31,
2025
Results of Operations
Earned Premiums$100.8 $99.7 
Net Investment Income48.7 48.4 
Other Income0.3 0.7 
Total Revenues149.8 148.8 
Policyholders’ Benefits and Incurred Losses and LAE64.0 62.2 
Insurance Expenses64.6 66.4 
Segment Adjusted Operating Income21.2 20.2 
Income Tax Expense3.2 3.0 
Total Segment Adjusted Net Operating Income$18.0 $17.2 
Use of Non-GAAP Financial Measures
Adjusted Consolidated Net Operating Income1 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;
(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 Kemper excluded from the calculation of Adjusted Consolidated Net Operating Income1 for the three months ended March 31, 2026 or 2025.

10

Kemper believes that Adjusted Consolidated Net Operating Income1 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 and Impairment Losses related to investments included in Kemper’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 Kemper’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 Kemper’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 Kemper, 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 Kemper’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 Kemper’s businesses.

A reconciliation of Net (Loss) Income attributable to Kemper Corporation to Adjusted Consolidated Net Operating Income1 for the three months ended March 31, 2026 and 2025 is presented below.
Three Months Ended
(Dollars in Millions) (Unaudited)Mar 31,
2026		Mar 31,
2025
Net (Loss) Income attributable to Kemper Corporation
$(1.7)$99.7 
Less Net (Loss) Income From:
Change in Fair Value of Equity and Convertible Securities(1.0)0.1 
Net Realized Investment Gains0.3 0.7 
Impairment Losses(1.3)0.2 
Acquisition and Disposition Related Transaction, Integration, Restructuring and Other Costs(5.0)(4.2)
Debt Extinguishment, Pension Settlement and Other Charges— 0.4 
Non-Core Operations(7.2)(3.9)
Adjusted Consolidated Net Operating Income1
$12.5 $106.4 
11

Diluted Adjusted Net Operating Income per Unrestricted Share1 is a non-GAAP financial measure computed by dividing Adjusted Net Operating Income1 by the weighted-average unrestricted shares and equivalent shares outstanding. The most directly comparable GAAP financial measure is Diluted Net (Loss) Income per Unrestricted Share.
A reconciliation of Diluted Net Operating (Loss) Income per Unrestricted Share to Diluted Adjusted Net Operating Income per Unrestricted Share1 for the three months ended March 31, 2026 and 2025 is presented below.
 Three Months Ended
(Unaudited)Mar 31,
2026		Mar 31,
2025
Diluted Net Operating (Loss) Income attributable to Kemper Corporation per Unrestricted Share
$(0.03)$1.54 
Less Net (Loss) Income per Unrestricted Share From:
Change in Fair Value of Equity and Convertible Securities
(0.02)— 
Net Realized Investment Gains0.01 0.01 
Impairment Losses(0.02)— 
Acquisition and Disposition Related Transaction, Integration, Restructuring and Other Costs(0.09)(0.07)
Debt Extinguishment, Pension Settlement and Other Charges— 0.01 
Non-Core Operations(0.12)(0.06)
Diluted Adjusted Net Operating Income per Unrestricted Share1
$0.21 $1.65 
12

Return on Adjusted Shareholders' Equity1 is a calculation that uses a non-GAAP financial measure. It is calculated by dividing the period’s annualized net 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. Kemper 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. Kemper believes it enhances understanding and comparability of performance by highlighting underlying business activity and profitability drivers.
A reconciliation of Return on Shareholders’ Equity to Return on Adjusted Shareholders’ Equity1 is presented below:
 Three Months Ended
(Dollars in Millions) (Unaudited)Mar 31,
2026		Mar 31,
2025
Numerator:
Annualized Net (Loss) Income attributable to Kemper Corporation
$(6.8)$398.8 
Denominator:
Average Shareholders' Equity2
$2,665.5 $2,853.0 
Less: Average Net Unrealized Losses on Fixed Maturities
601.5 667.6 
Less: Average Change in Discount Rate on Future Life Policyholder Benefits
(376.0)(373.2)
Less: Average Goodwill
(1,250.7)(1,250.7)
Average Adjusted Shareholders' Equity2
$1,640.3 $1,896.7 
Return on Shareholders' Equity:
Return on Shareholders' Equity(0.3)%14.0%
Return on Adjusted Shareholders' Equity1
(0.4)%21.0%
2 Average shareholders' equity and average adjusted shareholders’ equity 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 (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 Ratio1 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.
Kemper believes Underlying Losses and LAE and the Underlying Combined Ratio are useful to investors and uses these financial measures to reveal the trends in Kemper’s Property & Casualty Insurance segment that may be obscured by catastrophe losses and prior-year reserve development. These catastrophe losses may cause Kemper’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 Kemper’s insurance products in the current period. Kemper believes it is useful for investors to evaluate these components separately and in the aggregate when reviewing Kemper’s underwriting performance.
13

Adjusted Book Value Per Share1 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. Kemper 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. Kemper 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. Kemper believes it enhances understanding and comparability of performance by highlighting underlying business activity and profitability drivers.

A reconciliation of Book Value Per Share to Adjusted Book Value Per Share1 is presented below:
As of
(Dollars and Shares in Millions Except Per Share Amounts) (Unaudited)Mar 31,
2026		Dec 31, 2025
Numerator:
Kemper Corporation Shareholders’ Equity$2,649.6 $2,681.4 
Less: Net Unrealized Losses on Fixed Maturities
636.7 566.2 
Less: Change in Discount Rate on Future Life Policyholder Benefits(401.1)(350.8)
Less: Goodwill(1,250.7)(1,250.7)
Adjusted Shareholders’ Equity$1,634.5 $1,646.1 
Denominator:
Common Shares Issued and Outstanding58.821 58.667 
Book Value Per Share:
Book Value Per Share$45.05 $45.71 
Less: Net Unrealized Losses on Fixed Maturities
10.82 9.65 
Less: Change in Discount Rate on Future Life Policyholder Benefits(6.82)(5.98)
Less: Goodwill(21.26)(21.32)
Adjusted Book Value Per Share1
$27.79 $28.06 
Conference Call
Kemper will host its conference call to discuss first quarter 2026 results on Wednesday, May 6, at 5:00 p.m. Eastern (4:00 p.m. Central). The conference call will be accessible via the internet and by telephone at 833.461.5787, Conference ID 496484973. To listen via webcast, register online at the investor section of kemper.com at least 15 minutes prior to the webcast to download and install any necessary software. A replay of the call will be available online at the investor section of kemper.com.

More detailed financial information can be found in Kemper’s Investor Financial Supplement and Earnings Call Presentation for the first quarter of 2026, which is available at the investor section of kemper.com.

14

About Kemper
The Kemper family of companies is one of the nation’s leading specialized insurers. With approximately $12 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 4.5 million policies, is represented by approximately 24,000 agents and brokers, and has approximately 7,300 associates dedicated to meeting the ever-changing needs of its customers.
Learn more about Kemper at kemper.com.

Caution Regarding Forward-Looking Statements
This press release 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 interest rate environment;
•supply chain disruption;
•product demand and pricing;
•effects of legislative, 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”).

Kemper assumes no obligation to publicly correct or update any forward-looking statements as a result of events or developments subsequent to the date of this press release.
###

Contacts

Investors: Michael Marinaccio

312.661.4930 or investors@kemper.com
Media: Barbara Ciesemier
312.661.4521 or bciesemier@kemper.com

15

kemperlogocolorwebfinala051.jpg

Investor Supplement
First Quarter 2026

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 interest rate environment;
•supply chain disruption;
•product demand and pricing;
•effects of legislative, 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 26-29.





Kemper Corporation
Investor Supplement
First Quarter 2026
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 Severity14
Specialty Property & Casualty Insurance Segment - Results of Operations and Selected Financial Information15-16
Personal Automobile Insurance17
Commercial Automobile Insurance18
Life Insurance Segment - Results of Operations and Selected Financial Information19-20
Expenses21
Details of Investment Performance22
Details of Invested Assets23-24
Investments in Limited Liability Companies and Limited Partnerships25
Definitions of Non-GAAP Financial Measures26-29














Kemper Corporation
Consolidated Financial Highlights
(Dollars in Millions, Except Per Share Amounts)
(Unaudited)
 Quarter To Date Ended
Mar 31, 2026Dec 31, 2025Sep 30, 2025Jun 30, 2025Mar 31, 2025
For Period Ended
Earned Premiums
$999.3 $1,044.3 $1,133.3 $1,130.8 $1,087.9 
Net Investment Income
107.1 103.1 104.8 95.9 101.2 
Other Income (Loss)3.4 (10.6)2.9 3.1 2.6 
Change in Fair Value of Equity and Convertible Securities
(1.3)(1.8)(2.1)(0.5)0.1 
Net Investment (Losses) Gains(1.3)(3.6)0.8 (3.7)1.2 
Investment and Other Income107.9 87.1 106.4 94.8 105.1 
Total Revenues
$1,107.2 $1,131.4 $1,239.7 $1,225.6 $1,193.0 
Net (Loss) Income
$(4.4)$(10.0)$(24.2)$69.8 $97.0 
Less: Net Loss attributable to Noncontrolling Interest(2.7)(2.0)(3.2)(2.8)(2.7)
Net (Loss) Income attributable to Kemper Corporation
$(1.7)$(8.0)$(21.0)$72.6 $99.7 
Adjusted Consolidated Net Operating Income1
$12.5 $14.6 $20.4 $84.1 $106.4 
Per Unrestricted Common Share Amounts:
Basic:
Net (Loss) Income attributable to Kemper Corporation per Unrestricted Share:
$(0.03)$(0.13)$(0.34)$1.13 $1.56 
Adjusted Consolidated Net Operating Income1
$0.21 $0.25 $0.33 $1.31 $1.67 
Diluted:
Net (Loss) Income attributable to Kemper Corporation per Unrestricted Share:
$(0.03)$(0.13)$(0.34)$1.12 $1.54 
Adjusted Consolidated Net Operating Income1
$0.21 $0.25 $0.33 $1.30 $1.65 
Dividends Paid to Shareholders Per Share
$0.32 $0.32 $0.32 $0.32 $0.32 
Return on Shareholders' Equity(0.3)%(1.2)%(3.0)%9.9 %14.0 %
Return on Adjusted Shareholders' Equity1
(0.4)%(1.9)%(4.6)%14.9 %21.0 %
1Non-GAAP Financial Measure. See pages 26-29 for definition.
3

Kemper Corporation
Consolidated Financial Highlights (Continued)
(Dollars in Millions, Except Per Share Amounts)
(Unaudited)
As of
Mar 31, 2026Dec 31, 2025Sep 30, 2025Jun 30, 2025Mar 31, 2025
At Period End
Total Assets
$12,410.5 $12,472.7 $12,443.4 $12,601.1 $12,467.3 
Insurance Reserves
$6,238.4 $6,198.3 $6,123.6 $5,900.0 $5,867.1 
Debt
$944.0 $943.5 $943.1 $942.6 $942.1 
Kemper Corporation Shareholders’ Equity$2,649.6 $2,681.4 $2,732.1 $2,953.4 $2,917.6 
Book Value Per Share2
$45.05 $45.71 $45.38 $46.45 $45.60 
Adjusted Book Value Per Share1, 2
$27.79 $28.06 $28.55 $31.01 $30.31 
Debt to Total Capitalization2
26.3 %26.0 %25.7 %24.2 %24.4 %
1Non-GAAP Financial Measure. See pages 26-29 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)
 Quarter To Date Ended
 Mar 31, 2026Dec 31, 2025Sep 30, 2025Jun 30, 2025Mar 31, 2025
Revenues:
Earned Premiums$999.3 $1,044.3 $1,133.3 $1,130.8 $1,087.9 
Net Investment Income107.1 103.1 104.8 95.9 101.2 
Other Income (Loss)3.4 (10.6)2.9 3.1 2.6 
Change in Fair Value of Equity and Convertible Securities
(1.3)(1.8)(2.1)(0.5)0.1 
Net Realized Investment Gains (Losses)0.4 0.8 3.9 (0.1)0.9 
Impairment Losses(1.7)(4.4)(3.1)(3.6)0.3 
Total Revenues1,107.2 1,131.4 1,239.7 1,225.6 1,193.0 
Expenses:
Policyholders’ Benefits and Incurred Losses and Loss Adjustment Expenses828.8 854.5 924.6 829.1 767.3 
Insurance and Other Expenses277.0 281.4 339.1 300.0 294.5 
Interest Expense9.3 9.0 9.1 9.0 11.4 
Total Expenses1,115.1 1,144.9 1,272.8 1,138.1 1,073.2 
(Loss) Income before Income Taxes(7.9)(13.5)(33.1)87.5 119.8 
Income Tax (Benefit) Expense(3.5)(3.5)(8.9)17.7 22.8 
Net (Loss) Income(4.4)(10.0)(24.2)69.8 97.0 
Less: Net Loss attributable to Noncontrolling Interest(2.7)(2.0)(3.2)(2.8)(2.7)
Net (Loss) Income attributable to Kemper Corporation
$(1.7)$(8.0)$(21.0)$72.6 $99.7 
Net (Loss) Income attributable to Kemper Corporation per Unrestricted Share:
Basic$(0.03)$(0.13)$(0.34)$1.13 $1.56 
Diluted$(0.03)$(0.13)$(0.34)$1.12 $1.54 
Dividends Paid to Shareholders Per Share$0.32 $0.32 $0.32 $0.32 $0.32 
Weighted Average Unrestricted Common Shares Outstanding (in Millions)58.743 58.801 61.477 63.939 63.887 
Weighted-Average Unrestricted Shares and Equivalent Shares Outstanding Assuming Dilution (in Millions)58.743 58.801 61.477 64.600 64.653 
 
5

Kemper Corporation
Consolidated Balance Sheets
(Dollars in Millions)
 (Unaudited)
Mar 31, 2026Dec 31, 2025Sep 30, 2025Jun 30, 2025Mar 31, 2025
Assets:
Investments:
Fixed Maturities at Fair Value$6,672.2 $6,743.3 $6,620.3 $6,669.1 $6,558.6 
Equity Securities at Fair Value308.4 306.4 302.0 284.1 232.3 
Equity Method Limited Liability Investments176.1 176.0 174.9 176.2 185.1 
Short-term Investments at Cost which Approximates Fair Value296.6 313.5 371.2 407.6 545.3 
Company-Owned Life Insurance
586.2 579.2 567.9 557.1 546.5 
Loans to Policyholders
279.6 279.9 279.3 278.6 279.8 
Other Investments283.9 271.3 287.0 272.8 244.5 
Total Investments8,603.0 8,669.6 8,602.6 8,645.5 8,592.1 
Cash92.1 124.3 107.4 175.5 115.4 
Receivables from Policyholders997.1 965.2 1,022.9 1,038.7 1,052.7 
Other Receivables185.3 184.7 185.0 192.9 189.2 
Deferred Policy Acquisition Costs669.6 655.4 658.9 658.2 649.7 
Goodwill1,250.7 1,250.7 1,250.7 1,250.7 1,250.7 
Current Income Tax Assets40.2 40.7 57.4 57.5 40.9 
Deferred Income Tax Assets95.2 96.9 66.3 67.6 73.4 
Other Assets406.2 410.7 422.2 448.5 442.2 
Assets of Consolidated Variable Interest Entity:
Fixed Maturities at Fair Value47.2 42.1 36.3 33.3 13.7 
Short-term Investments at Cost which Approximates Fair Value9.2 14.4 17.5 14.9 31.6 
Cash0.5 1.7 — 1.5 — 
Receivables from Policyholders7.7 10.4 10.7 11.6 11.9 
Other Receivables0.5 0.4 0.4 0.2 0.1 
Deferred Policy Acquisition Costs1.0 1.3 1.4 1.6 1.5 
Deferred Income Tax Assets5.0 4.2 3.7 2.9 2.2 
Total Assets$12,410.5 $12,472.7 $12,443.4 $12,601.1 $12,467.3 
6

Kemper Corporation
Consolidated Balance Sheets
(Dollars in Millions)
 (Unaudited)
Mar 31, 2026Dec 31, 2025Sep 30, 2025Jun 30, 2025Mar 31, 2025
Liabilities and Shareholders’ Equity:
Insurance Reserves:
Life and Health$3,238.9 $3,287.5 $3,317.6 $3,235.3 $3,229.5 
Property and Casualty2,999.5 2,910.8 2,806.0 2,664.7 2,637.6 
Total Insurance Reserves6,238.4 6,198.3 6,123.6 5,900.0 5,867.1 
Unearned Premiums1,274.1 1,233.1 1,310.6 1,345.0 1,361.6 
Policyholder Obligations568.2 608.0 620.0 641.3 632.0 
Deferred Income Tax Liabilities4.3 14.8 13.5 14.7 6.6 
Accrued Expenses and Other Liabilities702.4 762.6 669.5 775.4 715.5 
Long-term Debt, Non-Current, at Amortized Cost944.0 943.5 943.1 942.6 942.1 
Liabilities of Consolidated Variable Interest Entity:
Insurance Reserves31.8 29.4 26.3 20.9 14.7 
Unearned Premiums9.9 12.1 13.6 14.5 14.5 
Accrued Expenses and Other Liabilities2.3 1.5 1.6 1.2 1.7 
Total Liabilities9,775.4 9,803.3 9,721.8 9,655.6 9,555.8 
Kemper Corporation Shareholders’ Equity:
Common Stock5.9 5.9 6.0 6.4 6.4 
Paid-in Capital1,732.6 1,723.9 1,737.2 1,859.3 1,863.6 
Retained Earnings1,137.8 1,157.8 1,216.0 1,345.4 1,308.9 
Accumulated Other Comprehensive Loss(226.7)(206.2)(227.1)(257.7)(261.3)
Total Kemper Corporation Shareholders’ Equity2,649.6 2,681.4 2,732.1 2,953.4 2,917.6 
Noncontrolling Interest(14.5)(12.0)(10.5)(7.9)(6.1)
Total Shareholders’ Equity$2,635.1 $2,669.4 $2,721.6 $2,945.5 $2,911.5 
Total Liabilities and Shareholders’ Equity$12,410.5 $12,472.7 $12,443.4 $12,601.1 $12,467.3 

7

Kemper Corporation
Consolidated Statements of Cash Flows
(Dollars in Millions)
 (Unaudited)
 Three Months Ended
 Mar 31,
2026		Mar 31,
2025
Cash Flows from Operating Activities:
Net (Loss) Income
$(4.4)$97.0 
Adjustments to Reconcile Net (Loss) Income to Net Cash Provided by Operating Activities:
Net Realized Investment Gains(0.4)(0.9)
Impairment Losses1.7 (0.3)
Depreciation and Amortization of Property, Equipment, Software and Intangible Assets Acquired
11.6 12.5 
Change in Accumulated Undistributed Earnings of Equity Method Limited Liability Investments(0.6)0.6 
Change in Value of Equity and Convertible Securities
1.3 (0.1)
Changes in:
Receivables from Policyholders(29.2)(78.5)
Reinsurance Recoverables2.8 (0.9)
Deferred Policy Acquisition Costs(13.9)(21.2)
Insurance Reserves106.6 43.1 
Unearned Premiums38.8 100.8 
Income Taxes(3.5)22.7 
Other
(22.0)5.2 
Net Cash Provided by Operating Activities88.8 180.0 
8

Kemper Corporation
Consolidated Statements of Cash Flows
(Dollars in Millions)
 (Unaudited)
 Three Months Ended
 Mar 31,
2026		Mar 31,
2025
Net Cash Provided by Operating Activities (Carryforward from page 8)88.8 180.0 
Cash Flows from Investing Activities:
Proceeds from the Sales, Calls and Maturities of Fixed Maturities309.4 215.1 
Proceeds from the Sales or Paydowns of Investments:
Equity Securities10.2 7.3 
Mortgage Loans29.0 24.1 
Other Investments5.4 5.9 
Purchases of Investments:
Fixed Maturities(358.8)(302.5)
Equity Securities(13.3)(20.5)
Real Estate Investments(0.8)(1.1)
Mortgage Loans(41.6)(51.7)
Other Investments(18.0)(15.0)
Net Sales of Short-term Investments22.7 493.6 
Acquisition of Software and Long-lived Assets(10.9)(7.7)
Settlement Proceeds from Company-Owned Life Insurance4.7 2.9 
Other(1.1)0.7 
Net Cash (Used in) Provided by Investing Activities(63.1)351.1 
Cash Flows from Financing Activities:
Repayment of Long-term Debt— (450.0)
Proceeds from Policyholder Contract Obligations— 20.0 
Repayment of Policyholder Contract Obligations(39.9)(25.9)
Proceeds from Shares Issued under Employee Stock Purchase Plan0.8 0.8 
Common Stock Repurchases— (4.0)
Dividends Paid(18.3)(20.2)
Other(1.7)(1.8)
Net Cash Used in Financing Activities(59.1)(481.1)
Net (decrease) increase in cash1
(33.4)50.0 
Cash, Beginning of Year1
126.0 65.4 
Cash, End of Period1
$92.6 $115.4 
1Includes amounts attributable to Kemper Reciprocal reported as noncontrolling interest.
9

Kemper Corporation
Capital Metrics
(Dollars and Shares in Millions, Except Per Share Amounts)
(Unaudited)
 Mar 31, 2026Dec 31, 2025Sep 30, 2025Jun 30, 2025Mar 31, 2025
Book Value Per Share  
Book Value Per Share$45.05 $45.71 $45.38 $46.45 $45.60 
Adjusted Book Value Per Share1
$27.79 $28.06 $28.55 $31.01 $30.31 
Debt and Total Capitalization
Debt$944.0 $943.5 $943.1 $942.6 $942.1 
Kemper Corporation Shareholders’ Equity2,649.6 2,681.4 2,732.1 2,953.4 2,917.6 
Total Capitalization$3,593.6 $3,624.9 $3,675.2 $3,896.0 $3,859.7 
Ratio of Debt to Kemper Corporation Shareholders’ Equity35.6 %35.2 %34.5 %31.9 %32.3 %
Ratio of Debt to Total Capitalization26.3 %26.0 %25.7 %24.2 %24.4 %
Debt$944.0 $943.5 $943.1 $942.6 $942.1 
Kemper Corporation Shareholders’ Equity$2,649.6 $2,681.4 $2,732.1 $2,953.4 $2,917.6 
Less: Accumulated Other Comprehensive Loss
(226.7)(206.2)(227.1)(257.7)(261.3)
Kemper Corporation Shareholders’ Equity Excluding Accumulated Other Comprehensive Loss
$2,876.3 $2,887.6 $2,959.2 $3,211.1 $3,178.9 
Total Capitalization Excluding Accumulated Other Comprehensive Loss
$3,820.3 $3,831.1 $3,902.3 $4,153.7 $4,121.0 
Ratio of Debt to Kemper Corporation Shareholders’ Equity Excluding Accumulated Other Comprehensive Loss
32.8 %32.7 %31.9 %29.4 %29.6 %
Ratio of Debt to Total Capitalization Excluding Accumulated Other Comprehensive Loss
24.7 %24.6 %24.2 %22.7 %22.9 %
Parent Company Liquidity2
Kemper Holding Company Cash and Investments3
$80.2 $145.4 $156.8 $223.2 $161.3 
Borrowings Available Under Credit Agreement600.0 600.0 600.0 600.0 600.0 
Parent Company Liquidity$680.2 $745.4 $756.8 $823.2 $761.3 
Capital Returned to Shareholders
Cash Dividends Paid4
$18.3 $18.9 $19.7 $20.8 $20.2 
1Non-GAAP Financial Measure. See pages 26-29 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)
Mar 31, 2026Dec 31, 2025Sep 30, 2025Jun 30, 2025Mar 31, 2025
Kemper Corporation:
Non-Current:
2.400% Senior Notes due September 30, 2030398.0 397.9 397.8 397.7 397.6 
3.800% Senior Notes due 2032397.1 396.9 396.8 396.7 396.6 
5.875% Fixed-Rate Reset Junior Subordinated Debentures Due 2062148.9 148.7 148.5 148.2 147.9 
Long-term Debt Outstanding at Amortized Cost$944.0 $943.5 $943.1 $942.6 $942.1 
Federal Home Loan Bank Advances to Insurance Subsidiaries:
Reported as Policyholder Contract Liabilities:
Federal Home Loan Bank of Chicago$475.0 $513.8 $525.2 $546.2 $536.2 
 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)
 Quarter To Date Ended
 Mar 31, 2026Dec 31, 2025Sep 30, 2025Jun 30, 2025Mar 31, 2025
Revenues:  
Specialty Property & Casualty Insurance:
Earned Premiums:
Personal Automobile$647.0 $696.8 $785.1 $789.3 $753.7 
Commercial Automobile238.2 238.6 232.2 221.5 208.5 
Total Specialty Property & Casualty Insurance Earned Premiums885.2 935.4 1,017.3 1,010.8 962.2 
Net Investment Income55.3 57.3 53.8 49.6 50.5 
Other Income2.7 2.4 2.5 2.7 1.3 
Total Specialty Property & Casualty Insurance Revenues943.2 995.1 1,073.6 1,063.1 1,014.0 
Life Insurance:
Earned Premiums100.8 93.4 99.8 100.5 99.7 
Net Investment Income48.7 47.1 48.0 44.7 48.4 
Other Income0.3 0.2 0.4 0.3 0.7 
Total Life Insurance Revenues149.8 140.7 148.2 145.5 148.8 
Total Segment Revenues1,093.0 1,135.8 1,221.8 1,208.6 1,162.8 
Change in Fair Value of Equity and Convertible Securities
(1.3)(1.8)(2.1)(0.5)0.1 
Non-Core Operations
15.4 17.5 18.2 21.3 27.9 
Net Realized Investment Gains (Losses), Impairment Losses, and Other0.1 (20.1)1.8 (3.8)2.2 
Total Revenues$1,107.2 $1,131.4 $1,239.7 $1,225.6 $1,193.0 

12

Kemper Corporation
Segment Adjusted Operating Results
(Dollars in Millions)
(Unaudited)
 Quarter To Date Ended
 Mar 31, 2026Dec 31, 2025Sep 30, 2025Jun 30, 2025Mar 31, 2025
Segment Adjusted Operating Income (Loss):
 
Specialty Property & Casualty Insurance$(0.7)$3.1 $7.9 $98.9 $122.1 
Life Insurance21.2 23.5 22.1 14.3 20.2 
Total Segment Adjusted Operating Income
20.5 26.6 30.0 113.2 142.3 
Corporate and Other Adjusted Operating Loss(10.3)(12.5)(12.3)(11.3)(14.1)
Less: Loss before Income Taxes attributable to Noncontrolling Interest(3.4)(2.6)(4.1)(3.4)(3.5)
Adjusted Consolidated Operating Income13.6 16.7 21.8 105.3 131.7 
(Loss) Income From:
Change in Fair Value of Equity and Convertible Securities
(1.3)(1.8)(2.1)(0.5)0.1 
Net Realized Investment Gains (Losses)0.4 0.8 3.9 (0.1)0.9 
Impairment Losses(1.7)(4.4)(3.1)(3.6)0.3 
Acquisition and Disposition Related Transaction, Integration, Restructuring and Other Costs(6.3)(18.3)(22.9)(4.8)(5.3)
Debt Extinguishment, Pension Settlement and Other Charges
— — — — 0.5 
Non-Core Operations
(9.2)(3.9)(26.6)(5.4)(4.9)
(Loss) Income before Income Taxes attributable to Kemper Corporation
$(4.5)$(10.9)$(29.0)$90.9 $123.3 
Segment Adjusted Net Operating Income:
Specialty Property & Casualty Insurance$0.1 $2.6 $7.6 $79.0 $97.9 
Life Insurance18.0 20.1 18.6 12.6 17.2 
Total Segment Adjusted Net Operating Income18.1 22.7 26.2 91.6 115.1 
Corporate and Other Adjusted Net Operating Loss(8.3)(10.1)(9.0)(10.3)(11.4)
Less: Net Loss attributable to Noncontrolling Interest(2.7)(2.0)(3.2)(2.8)(2.7)
Adjusted Consolidated Net Operating Income1
12.5 14.6 20.4 84.1 106.4 
Net (Loss) Income From:
Change in Fair Value of Equity and Convertible Securities
(1.0)(1.4)(1.7)(0.4)0.1 
Net Realized Investment Gains (Losses)0.3 0.6 3.1 (0.1)0.7 
Impairment Losses(1.3)(3.4)(2.5)(2.8)0.2 
Acquisition and Disposition Related Transaction, Integration, Restructuring and Other Costs(5.0)(15.5)(19.6)(3.8)(4.2)
Debt Extinguishment, Pension Settlement and Other Charges
— — — — 0.4 
Non-Core Operations
(7.2)(2.9)(20.7)(4.4)(3.9)
Net (Loss) Income attributable to Kemper Corporation
$(1.7)$(8.0)$(21.0)$72.6 $99.7 
1Non-GAAP Financial Measure. See pages 26-29 for definition.
        
13

Kemper Corporation
Catastrophe Frequency and Severity
(Dollars in Millions)
(Unaudited)
Three Months Ended March 31, 2026
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 $512 $1.3 2 $0.1 9 $2.4 16 $3.8 
$5 - $10— — — — — — — — 
$10 - $15— — — — — — — — 
$15 - $20— — — — — — — — 
$20 - $25— — — — — — — — 
Greater Than $25— — — — — — — — 
Total12 $1.3 2 $0.1 9 $2.4 16 $3.8 
Three Months Ended March 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 $515 $3.8 6 $0.3 11 $3.1 16 $7.2 
$5 - $10— — — — — — — — 
$10 - $15— — — — — — — — 
$15 - $20— — — — — — — — 
$20 - $25— — — — — — — — 
Greater Than $25— — — — — — — — 
Total15 $3.8 6 $0.3 11 $3.1 16 $7.2 
1Current accident year net incurred catastrophe Losses and LAE only.







14

Kemper Corporation
Specialty Property & Casualty Insurance Segment
Results of Operations and Selected Financial Information
(Dollars in Millions)
(Unaudited)
 Quarter To Date Ended
 Mar 31, 2026Dec 31, 2025Sep 30, 2025Jun 30, 2025Mar 31, 2025
Results of Operations   
Net Premiums Written$925.0 $860.3 $982.2 $1,001.5 $1,068.8 
Total Specialty P&C:
Personal Automobile$647.0 $696.8 $785.1 $789.3 $753.7 
Commercial Automobile238.2 238.6 232.2 221.5 208.5 
Earned Premiums885.2 935.4 1,017.3 1,010.8 962.2 
Net Investment Income55.3 57.3 53.8 49.6 50.5 
Other Income2.7 2.4 2.5 2.7 1.3 
Total Revenues943.2 995.1 1,073.6 1,063.1 1,014.0 
Incurred Losses and LAE related to:
Current Year:
Non-catastrophe Losses and LAE742.8 780.0 798.7 730.1 682.3 
Catastrophe Losses and LAE1.3 1.4 1.0 5.3 3.8 
Prior Years:
Non-catastrophe Losses and LAE3.2 9.3 51.4 13.6 0.5 
Catastrophe Losses and LAE0.4 (0.8)— 0.4 0.2 
Total Incurred Losses and LAE747.7 789.9 851.1 749.4 686.8 
Insurance Expenses196.2 202.1 214.6 214.8 205.1 
Segment Adjusted Operating (Loss) Income(0.7)3.1 7.9 98.9 122.1 
Income Tax (Benefit) Expense(0.8)0.5 0.3 19.9 24.2 
Total Segment Adjusted Net Operating Income$0.1 $2.6 $7.6 $79.0 $97.9 
Ratios Based On Earned Premiums
Current Year Non-catastrophe Losses and LAE Ratio84.0 %83.4 %78.5 %72.3 %70.9 %
Current Year Catastrophe Losses and LAE Ratio0.1 0.1 0.1 0.5 0.4 
Prior Years Non-catastrophe Losses and LAE Ratio0.4 1.0 5.1 1.3 0.1 
Prior Years Catastrophe Losses and LAE Ratio— (0.1)— — — 
Total Incurred Loss and LAE Ratio84.5 84.4 83.7 74.1 71.4 
Insurance Expense Ratio22.2 21.6 21.1 21.3 21.3 
Combined Ratio106.7 %106.0 %104.8 %95.4 %92.7 %
Underlying Combined Ratio1
Current Year Non-catastrophe Losses and LAE Ratio84.0 %83.4 %78.5 %72.3 %70.9 %
Insurance Expense Ratio22.2 21.6 21.1 21.3 21.3 
Underlying Combined Ratio106.2 %105.0 %99.6 %93.6 %92.2 %
Non-GAAP Measure Reconciliation
Combined Ratio as Reported106.7 %106.0 %104.8 %95.4 %92.7 %
Less:
Current Year Catastrophe Losses and LAE Ratio0.1 0.1 0.1 0.5 0.4 
Prior Years Non-catastrophe Losses and LAE Ratio0.4 1.0 5.1 1.3 0.1 
Prior Years Catastrophe Losses and LAE Ratio— (0.1)— — — 
Underlying Combined Ratio106.2 %105.0 %99.6 %93.6 %92.2 %
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.
15

Kemper Corporation
Specialty Property & Casualty Insurance Segment
Results of Operations and Selected Financial Information (continued)
(Dollars in Millions)
(Unaudited)
Mar 31, 2026Dec 31, 2025Sep 30, 2025Jun 30, 2025Mar 31, 2025
Insurance Reserves:
Non-Standard Automobile$1,880.0 $1,826.8 $1,752.1 $1,661.2 $1,640.3 
Commercial Automobile996.1 942.6 894.2 813.0 771.5 
Insurance Reserves$2,876.1 $2,769.4 $2,646.3 $2,474.2 $2,411.8 
Insurance Reserves:
Loss and Allocated LAE Reserves:
Case and Allocated LAE$1,027.9 $960.4 $932.7 $906.1 $930.1 
Incurred but Not Reported1,651.8 1,610.9 1,518.7 1,378.8 1,300.5 
Total Loss Reserves2,679.7 2,571.3 2,451.4 2,284.9 2,230.6 
Unallocated LAE Reserves196.4 198.1 194.9 189.3 181.2 
Insurance Reserves$2,876.1 $2,769.4 $2,646.3 $2,474.2 $2,411.8 
16

Kemper Corporation
Specialty Property & Casualty Insurance Segment
Personal Automobile Insurance - Results of Operations and Selected Financial Information
(Dollars in Millions)
(Unaudited)
 Quarter To Date Ended
 Mar 31, 2026Dec 31, 2025Sep 30, 2025Jun 30, 2025Mar 31, 2025
Results of Operations  
Net Premiums Written$650.4 $615.6 $727.6 $767.0 $823.9 
Earned Premiums$647.0 $696.8 $785.1 $789.3 $753.7 
Net Investment Income34.0 35.7 33.8 31.3 31.8 
Other Income2.7 2.3 2.3 2.6 1.2 
Total Revenues683.7 734.8 821.2 823.2 786.7 
Incurred Losses and LAE related to:
Current Year:
Non-catastrophe Losses and LAE568.1 607.6 629.2 571.7 528.4 
Catastrophe Losses and LAE1.1 1.1 0.6 4.3 2.7 
Prior Years:
Non-catastrophe Losses and LAE(2.9)0.3 8.0 (5.0)(4.7)
Catastrophe Losses and LAE0.4 (0.8)(0.1)0.3 0.1 
Total Incurred Losses and LAE566.7 608.2 637.7 571.3 526.5 
Insurance Expenses150.6 159.1 172.5 173.7 166.8 
Adjusted Operating (Loss) Income(33.6)(32.5)11.0 78.2 93.4 
Income Tax (Benefit) Expense(7.4)(6.0)1.4 16.1 18.7 
Total Product Line Adjusted Net Operating (Loss) Income$(26.2)$(26.5)$9.6 $62.1 $74.7 
Ratios Based On Earned Premiums
Current Year Non-catastrophe Losses and LAE Ratio87.7 %87.2 %80.1 %72.5 %70.1 %
Current Year Catastrophe Losses and LAE Ratio0.2 0.2 0.1 0.5 0.4 
Prior Years Non-catastrophe Losses and LAE Ratio(0.4)— 1.0 (0.6)(0.6)
Prior Years Catastrophe Losses and LAE Ratio0.1 (0.1)— — — 
Total Incurred Loss and LAE Ratio87.6 87.3 81.2 72.4 69.9 
Insurance Expense Ratio23.3 22.8 22.0 22.0 22.1 
Combined Ratio110.9 %110.1 %103.2 %94.4 %92.0 %
Underlying Combined Ratio1
Current Year Non-catastrophe Losses and LAE Ratio87.7 %87.2 %80.1 %72.5 %70.1 %
Insurance Expense Ratio23.3 22.8 22.0 22.0 22.1 
Underlying Combined Ratio111.0 %110.0 %102.1 %94.5 %92.2 %
Non-GAAP Measure Reconciliation
Combined Ratio110.9 %110.1 %103.2 %94.4 %92.0 %
Less:
Current Year Catastrophe Losses and LAE Ratio0.2 0.2 0.1 0.5 0.4 
Prior Years Non-catastrophe Losses and LAE Ratio(0.4)— 1.0 (0.6)(0.6)
Prior Years Catastrophe Losses and LAE Ratio0.1 (0.1)— — — 
Underlying Combined Ratio111.0 %110.0 %102.1 %94.5 %92.2 %
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.
17

Kemper Corporation
Specialty Property & Casualty Insurance Segment
Commercial Automobile Insurance - Results of Operations and Selected Financial Information
(Dollars in Millions)
(Unaudited)
 Quarter To Date Ended
 Mar 31, 2026Dec 31, 2025Sep 30, 2025Jun 30, 2025Mar 31, 2025
Results of Operations  
Net Premiums Written$274.6 $244.7 $254.6 $234.5 $244.9 
Earned Premiums$238.2 $238.6 $232.2 $221.5 $208.5 
Net Investment Income21.3 21.6 20.0 18.3 18.7 
Other Income— 0.1 0.2 0.1 0.1 
Total Revenues259.5 260.3 252.4 239.9 227.3 
Incurred Losses and LAE related to:
Current Year:
Non-catastrophe Losses and LAE174.7 172.4 169.5 158.4 153.9 
Catastrophe Losses and LAE0.2 0.3 0.4 1.0 1.1 
Prior Years:
Non-catastrophe Losses and LAE6.1 9.0 43.4 18.6 5.2 
Catastrophe Losses and LAE— — 0.1 0.1 0.1 
Total Incurred Losses and LAE181.0 181.7 213.4 178.1 160.3 
Insurance Expenses45.6 43.0 42.1 41.1 38.3 
Adjusted Operating Income (Loss)32.9 35.6 (3.1)20.7 28.7 
Income Tax Expense (Benefit)6.6 6.5 (1.1)3.8 5.5 
Total Product Line Adjusted Net Operating Income (Loss)$26.3 $29.1 $(2.0)$16.9 $23.2 
Ratios Based On Earned Premiums
Current Year Non-catastrophe Losses and LAE Ratio73.3 %72.3 %73.0 %71.5 %73.9 %
Current Year Catastrophe Losses and LAE Ratio0.1 0.1 0.2 0.5 0.5 
Prior Years Non-catastrophe Losses and LAE Ratio2.6 3.8 18.7 8.4 2.5 
Prior Years Catastrophe Losses and LAE Ratio— — — — — 
Total Incurred Loss and LAE Ratio76.0 76.2 91.9 80.4 76.9 
Insurance Expense Ratio19.1 18.0 18.1 18.6 18.4 
Combined Ratio95.1 %94.2 %110.0 %99.0 %95.3 %
Underlying Combined Ratio1
Current Year Non-catastrophe Losses and LAE Ratio73.3 %72.3 %73.0 %71.5 %73.9 %
Insurance Expense Ratio19.1 18.0 18.1 18.6 18.4 
Underlying Combined Ratio92.4 %90.3 %91.1 %90.1 %92.3 %
Non-GAAP Measure Reconciliation
Combined Ratio95.1 %94.2 %110.0 %99.0 %95.3 %
Less:
Current Year Catastrophe Losses and LAE Ratio0.1 0.1 0.2 0.5 0.5 
Prior Years Non-catastrophe Losses and LAE Ratio2.6 3.8 18.7 8.4 2.5 
Prior Years Catastrophe Losses and LAE Ratio— — — — — 
Underlying Combined Ratio92.4 %90.3 %91.1 %90.1 %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.
    
18

Kemper Corporation
Life Insurance Segment
Results of Operations and Selected Financial Information
(Dollars in Millions)
(Unaudited)
 Quarter To Date Ended
 Mar 31, 2026Dec 31, 2025Sep 30, 2025Jun 30, 2025Mar 31, 2025
Results of Operations 
Earned Premiums$100.8 $93.4 $99.8 $100.5 $99.7 
Net Investment Income48.7 47.1 48.0 44.7 48.4 
Other Income0.3 0.2 0.4 0.3 0.7 
Total Revenues149.8 140.7 148.2 145.5 148.8 
Policyholders’ Benefits and Incurred Losses and LAE64.0 52.5 60.5 63.5 62.2 
Insurance Expenses64.6 64.7 65.6 67.7 66.4 
Segment Adjusted Operating Income21.2 23.5 22.1 14.3 20.2 
Income Tax Expense3.2 3.4 3.5 1.7 3.0 
Total Segment Adjusted Net Operating Income$18.0 $20.1 $18.6 $12.6 $17.2 
    

19

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

Mar 31, 2026Dec 31, 2025Sep 30, 2025Jun 30, 2025Mar 31, 2025
Insurance Reserves:
Future Policyholder Benefits$3,199.9 $3,248.1 $3,282.2 $3,196.5 $3,186.0 
Incurred Losses and LAE Reserves:
Life34.4 35.0 31.1 34.3 39.0 
Accident and Health4.6 4.4 4.3 4.5 4.5 
Property1.8 1.9 2.0 2.1 2.1 
Total Incurred Losses and LAE Reserves40.8 41.3 37.4 40.9 45.6 
Insurance Reserves$3,240.7 $3,289.4 $3,319.6 $3,237.4 $3,231.6 


20

Kemper Corporation
Expenses
(Dollars in Millions)
(Unaudited)
 Three Months Ended
 Mar 31, 2026Dec 31, 2025Sep 30, 2025Jun 30, 2025Mar 31, 2025
Insurance and Other Expenses: 
Insurance Expenses:
Policy Acquisition Costs, Net of Amortization
$152.7 $162.9 $173.8 $177.1 $164.3 
Business Unit Operating Costs69.2 70.0 94.2 71.4 75.1 
Corporate Overhead Costs
46.4 43.5 43.7 44.6 46.7 
Insurance Expenses268.3 276.4 311.7 293.1 286.1 
Other Expenses:
Acquisition and Disposition Related Transaction, Integration, Restructuring and Other Costs6.3 5.0 22.9 4.8 5.3 
Other Corporate Costs
2.4 — 4.5 2.1 3.1 
Other Expenses8.7 5.0 27.4 6.9 8.4 
Insurance and Other Expenses277.0 281.4 339.1 300.0 294.5 
Interest Expense9.3 9.0 9.1 9.0 11.4 
Total Insurance, Interest, and Other Expenses
$286.3 $290.4 $348.2 $309.0 $305.9 

21

Kemper Corporation
Details of Investment Performance
(Dollars in Millions)
(Unaudited)
 
Three Months Ended
 Mar 31, 2026Dec 31, 2025Sep 30, 2025Jun 30, 2025Mar 31, 2025
Net Investment Income 
Interest on Fixed Income Securities1
$79.4 $77.0 $79.1 $76.9 $76.4 
Dividends on Equity Securities Excluding Alternative Investments0.7 4.4 2.1 0.7 0.8 
Alternative Investments:
Equity Method Limited Liability Investments0.6 (1.0)— (5.3)(0.7)
Limited Liability Investments Included in Equity Securities7.1 2.9 4.0 3.1 3.7 
Total Alternative Investments7.7 1.9 4.0 (2.2)3.0 
Short-term Investments3.1 4.0 4.2 6.0 8.6 
Loans to Policyholders5.3 5.2 5.2 5.1 5.3 
Real Estate2.3 2.4 2.5 2.3 2.2 
Company-Owned Life Insurance
11.5 11.4 10.8 10.5 10.2 
Other4.0 3.1 3.1 3.3 2.0 
Total Investment Income114.0 109.4 111.0 102.6 108.5 
Investment Expenses:
Real Estate1.8 2.7 2.0 2.2 2.1 
Other Investment Expenses1
5.1 3.6 4.2 4.5 5.2 
Total Investment Expenses6.9 6.3 6.2 6.7 7.3 
Net Investment Income$107.1 $103.1 $104.8 $95.9 $101.2 
Net Realized Investment Gains (Losses)
Fixed Maturities:
Gains on Sales$2.6 $0.9 $3.7 $0.4 $1.3 
Losses on Sales(2.4)(0.6)(0.5)(0.5)(0.5)
Equity Securities:
Gains on Sales0.2 0.4 0.5 — — 
Losses on Sales— — — — — 
Other Investments:
Gains on Sales— 0.1 0.2 — 0.1 
Losses on Sales— — — — — 
Net Realized Investment Gains (Losses)$0.4 $0.8 $3.9 $(0.1)$0.9 
Net Impairment Losses Recognized in Earnings
Fixed Maturities$(0.8)$(4.6)$(2.9)$(3.6)$0.3 
Real Estate(0.2)0.2 (0.1)— — 
Other(0.7)— (0.1)— — 
Net Impairment Losses Recognized in Earnings$(1.7)$(4.4)$(3.1)$(3.6)$0.3 
1Reduced by interest expense incurred on FHLB borrowings used for spread lending purposes of $3.9 million, $4.4 million, $4.7 million, $4.8 million, $4.8 million, for the three months ended March 31, 2026, December 31, 2025, September 30, 2025, June 30, 2025 and March 31, 2025, respectively.



 

22

Kemper Corporation
Details of Invested Assets
(Dollars in Millions)
(Unaudited)
 Mar 31, 2026Dec 31, 2025Dec 31, 2024
 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$627.4 7.3 %$622.4 7.2 %$486.8 5.5 %
States and Political Subdivisions1,233.3 14.3 1,253.2 14.5 1,233.2 13.9 
Foreign Governments 14.5 0.2 11.0 0.1 6.6 0.1 
Corporate Securities:
Bonds and Notes3,642.3 42.4 3,650.3 42.2 3,519.6 39.6 
Redeemable Preferred Stocks9.7 0.1 10.2 0.1 8.9 0.1 
Collateralized Loan Obligations794.5 9.2 843.0 9.7 741.5 8.3 
Other Mortgage- and Asset-backed350.5 4.1 353.2 4.1 413.0 4.6 
Total Fixed Maturities Reported at Fair Value6,672.2 77.6 6,743.3 77.9 6,409.6 72.1 
Equity Securities Reported at Fair Value:
Preferred Stocks19.1 0.2 19.2 0.2 22.6 0.3 
Common Stocks61.0 0.7 65.0 0.7 1.4 — 
Other Equity Interests:
Exchange Traded Funds10.6 0.1 11.9 0.1 10.9 0.1 
Limited Liability Companies and Limited Partnerships217.7 2.5 210.3 2.4 183.6 2.1 
Total Equity Securities Reported at Fair Value308.4 3.5 306.4 3.4 218.5 2.5 
Equity Method Limited Liability Investments176.1 2.0 176.0 2.0 186.3 2.1 
Short-term Investments at Cost which Approximates Fair Value296.6 3.4 313.5 3.6 1,037.1 11.7 
Company Owned Life Insurance586.2 6.8 579.2 6.7 539.2 6.1 
Loans to Policyholders279.6 3.3 279.9 3.2 280.7 3.2 
Other Investments:
Equity Securities Reported at Modified Cost21.2 0.3 21.7 0.3 22.5 0.2 
Real Estate at Depreciated Cost92.9 1.1 92.7 1.1 99.5 1.1 
Mortgage Loans161.4 1.9 149.8 1.7 75.3 0.8 
Other8.4 0.1 7.1 0.1 19.8 0.2 
Total Other Investments283.9 3.4 271.3 3.2 217.1 2.3 
Total Investments$8,603.0 100.0 %$8,669.6 100.0 %$8,888.5 100.0 %













23

Kemper Corporation
Details of Invested Assets (continued)
(Dollars in Millions)
(Unaudited)
 Mar 31, 2026Dec 31, 2025Dec 31, 2024
 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
$4,651.8 69.7 %$4,750.5 70.5 %$4,576.4 71.4 %
BBB
1,589.2 23.8 1,574.4 23.3 1,557.6 24.3 
BB, B
393.1 5.9 375.1 5.6 221.7 3.5 
CCC or Lower
38.1 0.6 43.3 0.6 53.9 0.8 
Total Investments in Fixed Maturities
$6,672.2 100.0 %$6,743.3 100.0 %$6,409.6 100.0 %
Duration (in Years)
Total Investments in Fixed Maturities
7.4 7.4 7.7 

24

Kemper Corporation
Investments in Limited Liability
Companies and Limited Partnerships
(Dollars in Millions)
(Unaudited)
 Unfunded
Commitment		Reported Value
Asset ClassMar 31,
2026		Mar 31,
2026		Dec 31,
2025
Reported as Equity Method Limited Liability Investments:
Senior Debt$54.8 $19.4 $21.1 
Mezzanine Debt43.5 117.1 115.5 
Secondary Transactions1.6 1.2 1.9 
Leveraged Buyout8.1 6.3 6.5 
Real Estate— 24.1 24.1 
Distressed Debt— 1.4 1.4 
Other0.2 6.6 5.5 
Total Equity Method Limited Liability Investments108.2 176.1 176.0 
Reported as Other Equity Interests at Fair Value:
Mezzanine Debt84.1 117.0 115.8 
Leveraged Buyout41.6 44.0 40.5 
Distressed Debt17.2 9.6 10.8 
Senior Debt7.4 25.6 25.5 
Growth Equity5.2 11.3 10.7 
Secondary Transactions1.0 1.0 1.3 
Real Estate0.2 0.1 0.1 
Other2.7 9.1 5.6 
Total Reported as Other Equity Interests at Fair Value159.4 217.7 210.3 
Other Equity Investments— 5.8 5.9 
Total Investments in Limited Liability Companies and Limited Partnerships$267.6 $399.6 $392.2 

25

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 ended March 31, 2026 or 2025.

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.






















26

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 Ended
Dollars in Millions (Unaudited)Mar 31, 2026Dec 31, 2025Sep 30, 2025Jun 30, 2025Mar 31, 2025
Net (Loss) Income attributable to Kemper Corporation
$(1.7)$(8.0)$(21.0)$72.6 $99.7 
Less Net (Loss) Income From:
Change in Fair Value of Equity and Convertible Securities
(1.0)(1.4)(1.7)(0.4)0.1 
Net Realized Investment Gains (Losses)0.3 0.6 3.1 (0.1)0.7 
Impairment Losses(1.3)(3.4)(2.5)(2.8)0.2 
Acquisition and Disposition Related Transaction, Integration, Restructuring and Other Costs(5.0)(15.5)(19.6)(3.8)(4.2)
Debt Extinguishment, Pension Settlement and Other Charges— — — — 0.4 
Non-Core Operations(7.2)(2.9)(20.7)(4.4)(3.9)
Adjusted Consolidated Net Operating Income$12.5 $14.6 $20.4 $84.1 $106.4 

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 Ended
Dollars in Millions (Unaudited)Mar 31, 2026Dec 31, 2025Sep 30, 2025Jun 30, 2025Mar 31, 2025
Net (Loss) Income attributable to Kemper Corporation per Unrestricted Share
$(0.03)$(0.13)$(0.34)$1.13 $1.56 
Less Net (Loss) Income per Unrestricted Share From:
Change in Fair Value of Equity and Convertible Securities
(0.02)(0.02)(0.03)— — 
Net Realized Investment Gains0.01 0.01 0.05 — 0.01 
Impairment Losses(0.02)(0.06)(0.04)(0.04)— 
Acquisition and Disposition Related Transaction, Integration, Restructuring and Other Costs(0.09)(0.26)(0.32)(0.07)(0.07)
Debt Extinguishment, Pension Settlement and Other Charges— — — — 0.01 
Non-Core Operations(0.12)(0.05)(0.33)(0.07)(0.06)
Adjusted Consolidated Net Operating Income per Unrestricted Share$0.21 $0.25 $0.33 $1.31 $1.67 






27

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 Ended
Dollars in Millions (Unaudited)Mar 31, 2026Dec 31, 2025Sep 30, 2025Jun 30, 2025Mar 31, 2025
Numerator:
Annualized Net (Loss) Income attributable to Kemper Corporation$(6.8)$(32.0)$(84.0)$290.4 $398.8 
Denominator:
Average Shareholders' Equity1
$2,665.5 $2,706.8 $2,842.8 $2,935.5 $2,853.0 
Less: Average Net Unrealized Losses on Fixed Maturities
601.5 559.8 595.9 638.6 667.6 
Less: Average Change in Discount Rate on Future Life Policyholder Benefits
(376.0)(333.4)(343.0)(368.0)(373.2)
Less: Average Goodwill
(1,250.7)(1,250.7)(1,250.7)(1,250.7)(1,250.7)
Average Adjusted Shareholders' Equity1
$1,640.3 $1,682.5 $1,845.0 $1,955.4 $1,896.7 
Return on Shareholders' Equity:
Return on Shareholders' Equity(0.3)%(1.2)%(3.0)%9.9 %14.0 %
Return on Adjusted Shareholders' Equity(0.4)%(1.9)%(4.6)%14.9 %21.0 %
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.






28

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)Mar 31, 2026Dec 31, 2025Sep 30, 2025Jun 30, 2025Mar 31, 2025
Numerator:
Kemper Corporation Shareholders’ Equity$2,649.6 $2,681.4 $2,732.1 $2,953.4 $2,917.6 
Less: Net Unrealized Losses on Fixed Maturities
636.7 566.2 553.4 638.6 638.6 
Less: Change in Discount Rate on Future Life Policyholder Benefits
(401.1)(350.8)(316.0)(370.0)(366.0)
Less: Goodwill
(1,250.7)(1,250.7)(1,250.7)(1,250.7)(1,250.7)
Adjusted Shareholders' Equity
$1,634.5 $1,646.1 $1,718.8 $1,971.3 $1,939.5 
Denominator:
Common Shares Issued and Outstanding58.82158.66760.20263.57663.979
Book Value Per Share:
Book Value Per Share
$45.05 $45.71 $45.38 $46.45 $45.60 
Less: Net Unrealized Losses on Fixed Maturities
10.82 9.65 9.19 10.04 9.98 
Less: Change in Discount Rate on Future Life Policyholder Benefits
(6.82)(5.98)(5.25)(5.82)(5.72)
Less: Goodwill
(21.26)(21.32)(20.77)(19.66)(19.55)
Adjusted Book Value Per Share
$27.79 $28.06 $28.55 $31.01 $30.31 
29
Earnings Call Presentation – 1Q 2026 First Quarter 2026 Earnings May 6, 2026

 

Earnings Call Presentation – 1Q 2026 Preliminary Matters 2 Cautionary Statements Regarding Forward-Looking Information This presentation 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: Non-GAAP Financial Measures This presentation contains non-GAAP financial measures that the company believes are meaningful to investors. Non- GAAP financial measures have been reconciled to the most comparable GAAP financial measure. • changes in the frequency and severity of insurance claims • claim development and the process of estimating claim reserves • the impacts of inflation • changes in interest rate environment • supply chain disruption • product demand and pricing • effects of legislative, governmental and regulatory actions • heightened competition • litigation outcomes and trends • investment risks • cybersecurity risks or incidents • impact of catastrophes • other risks and uncertainties detailed in Kemper’s Annual Report on Form 10-K and subsequent filings with the Securities and Exchange Commission (“SEC”) Kemper assumes no obligation to publicly correct or update any forward-looking statements as a result of events or developments subsequent to the date of this presentation.

 

Earnings Call Presentation – 1Q 2026 Leading Insurer Empowering Specialty Markets 3 Auto insurance for specialty markets, including Latino, Hispanic and urban areas Life insurance and supplemental accident and health insurance products for low/moderate income customers Specialty Property & Casualty Insurance Segment • Targets demographics and markets with unmet needs • Focused on specialized markets where deep customer insight enables differentiated underwriting and service • Personal and Commercial Lines product offerings across geographies • Disciplined underwriting and pricing tailored to unique customer and risk profiles • Broad independent agent and broker distribution Life Insurance Segment • Focused on demographics and income segments with unmet protection needs • Specializes in niches where proprietary insights inform product structure and customer experience • Provides simple Life and supplemental protection products enabled by underwriting and customer perspectives • Distributed through a dedicated career agency model with high-touch customer engagement Providing affordable, easy-to-use personalized solutions to individuals, families and businesses

 

Earnings Call Presentation – 1Q 2026 1 5 3 2 4 Key Takeaways for the Quarter 4 Financial performance challenged by California Personal Auto and Florida Statutory Profit Limit Refunds Strong performance in other parts of the business – Florida1/Texas Personal Auto, Commercial Auto and Life are profitable and growing Initiatives underway to improve Specialty Auto performance in California, including rate and non-rate actions Implementing further expense and efficiency initiatives with additional $30+ million of run-rate savings identified, totaling $60+ million since inception Investment portfolio continues to deliver solid results while the balance sheet provides financial flexibility to support core businesses 1 Excluding $28 million impact of FL Statutory Profit Limit Refunds

 

Earnings Call Presentation – 1Q 2026 First Quarter 2026 Financial Summary 5 Company-wide financial performance was dampened by CA PPA and FL statutory refunds • Net Loss attributable to Kemper Corporation of $(1.7) million or $(0.03) per share • Adjusted Consolidated Net Operating Income2 of $12.5 million or $0.21 per share • Normalized Adj. Consol. Net Operating Income3 of $34.6 million or $0.59 per share • Trailing twelve-month Operating Cash Flow of $493 million • Net Investment Income increased $4 million QoQ to $107 million Financial Results Personal Auto performance reflected increasing loss costs in CA and statutory refunds in FL • Combined Ratio of 110.9%; normalized ULCR1 of 106.5% • Performance was strong in FL1/TX with PIF up 4.9% QoQ and an ULCR2 of 93.7% Commercial Auto delivered record production with continued strong U/W performance • PIF increased 3.2% QoQ; ULCR2 of 92.4% Life Insurance continued to generate stable profitability • Life produced $18 million of Net Operating Income driven by lower insurance expenses Business Performance 1 Excluding $28 million impact of FL Statutory Profit Limit Refunds 2 Non-GAAP financial measure; please see reconciliation in appendix on pages 17-23 3 Adjusted Consolidated NOI normalized to exclude impact of FL Statutory Profit Limit Refunds; see page 13

 

Earnings Call Presentation – 1Q 2026 Taking Actions to Improve Profitability and Deliver Shareholder Value 6 Focused on disciplined execution, operational improvements and efficiency Taking rate and non-rate actions to improve underwriting performance • California Personal Auto rate increases approved, effective 2Q’26 • Expanding production in profitable markets and repositioning new business in unprofitable markets • Life pricing and underwriting actions driving improved new business margins Pricing and Underwriting Actions Initiatives underway to support geographic diversification and growth • Pricing adjustments in Florida and Texas supported sequential quarter PIF growth of 4.3% and 5.6%, respectively • New auto product expansion went live in Florida and approved for rollout in Texas • Modernizing Life distribution to grow new business and improve persistency Growth Initiatives Executing restructuring program to support profitability and growth • Identified cumulative run-rate savings of $60+ million since inception • Focused on creating efficiencies in organizational design and process improvements • Investing in new technology and digital capabilities to enhance scale and profitability Expense and Other Initiatives

 

Earnings Call Presentation – 1Q 2026 Improving Execution and Operating Efficiency 7 $33M in run-rate savings already delivered • Implemented restructuring actions to simplify operations and reduce costs • Outlined actions to support expansion plan in Florida, Texas and other regions with strong growth potential $30M+ in additional run-rate savings identified • Focused on creating efficiencies in organizational design and process improvements • Improving claims management processes, with focus on third- party liability management <20% expense ratio target • Working with advisors to identify, evaluate and execute additional actions to improve cost structure and processes • Opportunities include further efficiencies in organizational structure, claims management and operational processes • Initiative expected to improve both the expense ratio and the Loss and LAE ratio Phase 1 (3Q’25) Phase 2 (1Q’26) Phase 3 (Medium Term) 19% 21% 22% <20% 2019 - 2021 Average 2022 - 2025 Average 1Q'26 Medium Term Target SPECIALTY AUTO EXPENSE RATIO – TAKING ACTION TO RETURN EFFICIENCY TO HISTORICAL LEVELS Continuing to identify and execute on savings opportunities

 

Earnings Call Presentation – 1Q 2026 Specialty Property & Casualty Insurance Segment California PPA liability trends and Florida statutory refunds negatively impacted financial performance; Florida3/Texas PPA and Commercial Auto performance remained strong 8 1 Non-GAAP financial measure; see reconciliation in appendix on pages 17-23 2 Excluding Classic Car 3 Adjusted for $35 and $28 million reduction to earned premium in 4Q’25 and 1Q’26, respectively, for estimated FL Statutory Profit Limit Refunds 3 • Performance reflected losses in CA and $28 million of FL Statutory Profit Limit Refunds – ULCR1 of 106.2%; normalized ULCR3 of 102.8% • CA profit actions underway; PIF declined 4.6% QoQ • FL3/TX PPA remains strong; PIF growth of 4.9% QoQ and ULCR¹ of 93.7% • Commercial Auto PIF growth of 3.2% QoQ and ULCR¹ of 92.4% HIGHLIGHTS PRODUCTION AND PIF2 METRICS ($M) 1Q’26 1Q’25 VARIANCE Earned Premiums $885 $962 (8.0)% Underlying Loss & LAE Ratio1 84.0% 70.9% 13.1 pts Expense Ratio 22.2% 21.3% 0.9 pts Policies In-Force (000s) 1,158 1,304 (11.2)% 92.2 93.6 99.6 105.0 106.2 101.2 102.8 1Q'25 2Q'25 3Q'25 4Q'25 1Q'26 3 3 UNDERLYING COMBINED RATIO1 (%) 1Q’26 TTM % of PIF Growth DWP DWP YoY QoQ Personal Auto California $1,973 51.4% (14.7)% (4.6)% Florida3/Texas 622 16.2 (4.9) 4.9 Other 232 6.1 (24.8) (8.1) Total PPA $2,827 73.7% (13.9)% (3.0)% CV 1,009 26.3 10.0 3.2 Total KA $3,836 100.0% (11.2)% (2.2)%

 

Earnings Call Presentation – 1Q 2026 • Represents ~22% of Earned Premiums1 in 1Q’26 – Geographic diversification gaining momentum with strong new business DWP growth – Sequential quarter PIF growth in FL and TX of 4.3% and 5.6%, respectively • ULCR2 of 93.7% • New auto product expansion live in FL (already in AZ/OR) – Received approval for TX rollout in 2Q’26 • $28 million in FL Statutory Profit Limit Refunds • Represents ~69% of Earned Premiums1 in 1Q’26 – Deemphasizing growth in CA – reduced PIF by 4.6% – California only represents ~35% of PPA new business • ULCR2 of 109.2% • CA rate increases effective in April and June; will begin supporting financial results in 2Q’26 Specialty Property & Casualty Insurance – PPA Key State Metrics Portfolio and geographic diversification in Personal Auto expected to reduce earnings volatility 9 CALIFORNIA FLORIDA + TEXAS 1 Adjusted for $35 and $28 million reduction to earned premium in 4Q’25 and 1Q’26, respectively, for estimated FL Statutory Profit Limit Refunds 2 Non-GAAP financial measure; see reconciliation in appendix on pages 17-23 METRICS ($M) 1Q’26 4Q’25 VARIANCE Earned Premiums $467 $510 (8.4)% Underlying Loss & LAE Ratio2 87.4% 87.5% (0.1) pts Underlying Combined Ratio2 109.2% 108.1% 1.1 pts Policies In-Force (000s) 662 693 (4.6)% METRICS ($M) 1Q’261 4Q’251 VARIANCE Earned Premiums $151 $160 (5.6)% Underlying Loss & LAE Ratio2 71.2% 70.8% 0.4 pts Underlying Combined Ratio2 93.7% 93.5% 0.2 pts Policies In-Force (000s) 224 213 4.9%

 

Earnings Call Presentation – 1Q 2026 Specialty Property & Casualty Insurance – Commercial Auto Record production with strong underlying combined ratio performance 10 • Record production with growth in multiple geographies – PIF increased 10.0% YoY – DWP CAGR of ~23% since 2019 • Strong ULCR performance – Average ULCR1 of 90.2% from 2019 – 1Q’26 TTM • Opportunistically increasing rates where justified – California rate increase effective in July • Focused on expanding with existing small-business customer base and disciplined underwriting HIGHLIGHTS DIRECT WRITTEN PREMIUMS ($M) 1 Non-GAAP financial measure; see reconciliation in appendix on pages 17-23 85.6 81.4 91.1 93.8 95.6 92.3 90.9 91.0 81.8 77.4 94.4 94.8 100.0 94.0 99.7 99.5 2019 2020 2021 2022 2023 2024 2025 1Q'26 TTM UL Combined Ratio Combined Ratio $271 $349 $471 $631 $629 $799 $979 $1,009 2019 2020 2021 2022 2023 2024 2025 1Q'26 TTM 1 Avg. ULCR1: 90.2% | Avg. CR: 92.7% COMBINED RATIO (%)METRICS ($M) 1Q’26 1Q’25 VARIANCE Earned Premiums $238 $209 13.9% Underlying Loss & LAE Ratio1 73.3% 73.9% (0.6) pts Expense Ratio 19.1% 18.4% 0.7 pts Underlying Combined Ratio1 92.4% 92.3% 0.1 pts Policies In-Force (000s) 165 150 10.0%

 

Earnings Call Presentation – 1Q 2026 Life Insurance Segment Continues to deliver stable Net Operating Income with steady YoY in-force premiums 11 $100 $100 $100 $100 $101 $48 $45 $48 $47 $49 $148 $145 $148 $147 $150 1Q'25 2Q'25 3Q'25 4Q'25 1Q'26 Earned Premiums Net Investment Income METRICS ($M, except per policy) 1Q’26 1Q’25 VARIANCE Adjusted Net Operating Income $18 $17 5.9% Face Value of In-Force $19,698 $19,799 (0.5)% Avg. Face Value per Policy $6,603 $6,489 1.8% Avg. Premium per Policy Issued1 $697 $654 6.6% • Net Operating Income improvement driven by expense management and favorable lapse and mortality • Product repricing and tighter underwriting improving mix and margin • Modernizing Life distribution to grow new business and improve persistency HIGHLIGHTS 1 Annual basis 2 Normalized for annual assumption update for Deferred Profit Liability (4Q'25: -$6 million) NORMALIZED REVENUES2 ($M)

 

Earnings Call Presentation – 1Q 2026 Appendix 12

 

Earnings Call Presentation – 1Q 2026 1Q’26 Sources of Volatility Operating earnings volatility primarily related to Florida statutory refunds 13 1Q’26 ​​($ in millions, except per share amounts) $ Per Share Net Loss attributable to Kemper Corporation $(1.7) $(0.03) Less Net (Loss) Income From: Investment-Related Items1 (2.0) (0.03) Acquisition and Disposition Related Transaction, Integration, Restructuring and Other Costs (5.0) (0.09) Non-Core Operations (7.2) (0.12) Adjusted Consolidated Net Operating Income2 $12.5 $0.21 Additional Sources of Volatility FL Statutory Profit Limit Refunds $22.1 $0.38 Normalized Adj. Consol. Net Op. Income $34.6 $0.59 Includes $3.1 million after-tax restructuring charge to generate $30+ million pre-tax in annual run-rate savings Non-core results impacted by business run-off and winter storms in New York Represents reduction to earned premium due to impact of FL Statutory Profit Limit Refunds • Excluding FL statutory refunds: ULCR2 reduced from 106.2% to 102.8%3 1 2 2 1 3 3 1 Includes Change in Fair Value of Equity and Convertible Securities, Net Realized Investment Gains and Impairment Losses 2 Non-GAAP financial measure; see reconciliation on pages 17-23 | 3 Underlying Combined Ratio as further adjusted for $28 million reduction to earned premium for estimated FL Statutory Profit Limit Refunds

 

Earnings Call Presentation – 1Q 2026 Diversified Investment Portfolio with Consistent Returns 14 1 Non-Core Operations reflects $2 million related to Preferred P&C for each period presented 2 Other category includes Equity Securities, which excludes $218 million of Other Equity Interests of LPs/LLCs that have been reclassified into Alternative Investments; COLI represents Company Owned Life Insurance 4.3% 4.3% 4.4% 4.5% 4.4% 0.1% (0.1)% 0.2% 0.1% 0.3% 4.4% 4.2% 4.6% 4.6% 4.7% 1Q'25 2Q'25 3Q'25 4Q'25 1Q'26 Core Portfolio Alt. Inv. Portfolio (ex. Solar) 56% 14% 8% 7% 5% 7% 3% Other States/ Munis COLI 70% 24% 6% Fixed Maturity Ratings A or Higher B / BB BBB • High-quality portfolio provides consistent net investment income; approximately 70% of fixed income portfolio rated A or higher • 4.6% pre-tax equivalent (PTE) annualized book yield on core portfolio • Average investment grade new money yields approximately 5.4% for the quarter $98 $98 $101 $101 $99 $3 $(2) $4 $2 $8 $101 $96 $105 $103 $107 1Q'25 2Q'25 3Q'25 4Q'25 1Q'26 Core Portfolio Alternative Inv. Portfolio Corporates Alternatives U.S Gov’t Portfolio Composition2 Short Term $8.6 Billion $6.7 Billion NET INVESTMENT INCOME ($M)1 HIGHLIGHTS DIVERSIFIED AND HIGHLY-RATED PORTFOLIO PTE ANNUALIZED BOOK YIELD CONTRIBUTION

 

Earnings Call Presentation – 1Q 2026 Well-Capitalized Insurance Subsidiaries Balance sheet continues to provide financial flexibility to support core businesses 15 1 1Q’26 Risk-Based Capital Ratios shown are estimates calculated at the Company Action Level from aggregate financials of all separate insurance companies within each segment. NAIC annually reported entity-level RBCs will differ | 2 Excludes business ceded to Kemper Bermuda Ltd. (KBL) | 3 Excludes AACC and Reciprocal | 4 Excludes AOCI 24.1% 30.3% 32.6% 31.0% 24.6% 24.7% 2021 2022 2023 2024 2025 1Q'26 DEBT-TO-CAPITAL4 PARENT COMPANY LIQUIDITY ($M) RISK-BASED CAPITAL RATIOS (%)¹ $704 $918 $683 $800 $886 $886 $234 $418 $465 $548 $145 $80 $938 $1,336 $1,148 $1,348 $1,031 $966 2021 2022 2023 2024 2025 1Q'26 Debt CASH FLOW FROM OPERATING ACTIVITIES ($M) $351 $(210) $(134) $383 $585 $493 2021 2022 2023 2024 2025 1Q'26 TTM HoldCo Cash & Investments Borrowings Available Under Credit Agreement & from Subs P&C3 Life2 Returned $752M of capital Retired $450M of Debt 355 645 465 525 515 590 220 240 275 305 230 225 2021 2022 2023 2024 2025 1Q'26

 

Earnings Call Presentation – 1Q 2026 2026 Reinsurance Program Catastrophe XoL Reinsurance 16 New policy effective January 1, 2026: ̶ New limit aligned with risk-appetite ̶ New structure improves overall cost of capital HIGHLIGHTS Catastrophe Excess of Loss Program (XOL): • One year program consists of two layers: – $50 million excess $50 million – $60 million excess $100 million – 5% co-participation of both layers • 2026 purchase limit reflects exposure changes largely due to Preferred P&C exit 100% Retention of first $50M 1-Year Term Placed 1/1/26 $50M xs $50M 95% Placed 1-Year Term Placed 1/1/26 $60M xs $100M 95% Placed Layer 1 : 5 % co - p articip atio n Laye r 2 : 5 % co - p articip atio n CATASTROPHE REINSURANCE PROGRAM

 

Earnings Call Presentation – 1Q 2026 Non-GAAP Financial Measures 17 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; (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 ended March 31, 2026 or 2025. 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 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. 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. The Company believes that Adjusted Consolidated Net Operating Income Per Unrestricted Share provides investors with a valuable measure of its ongoing performance because it reveals underlying operational performance trends that otherwise might be less apparent if the items were not excluded. Income from Change in Fair Value of Equity and Convertible Securities, Net Realized Investment Gains, Impairment Losses related to investments, Acquisition and Disposition Related Transaction, Integration, Restructuring and Other Costs, Debt Extinguishment, Pension Settlement and Goodwill Impairment Charges 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.

 

Earnings Call Presentation – 1Q 2026 Non-GAAP Financial Measures 18 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. 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. 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.

 

Earnings Call Presentation – 1Q 2026 Non-GAAP Financial Measures Adjusted Consolidated Net Operating Income attributable to Kemper Corporation 19 Three Months Ended ​​($ per share) Mar 31, 2026​ Mar 31, 2025 Net (Loss) Income attributable to Kemper Corporation Per Unrestricted Share $(0.03) $1.56 Less Net (Loss) Income Per Unrestricted Share From: Change in Fair Value of Equity and Convertible Securities (0.02) - Net Realized Investment Gains 0.01 0.01 Impairment Losses (0.02) - Acquisition and Disposition Related Transaction, Integration, Restructuring and Other Costs (0.09) (0.07) Debt Extinguishment, Pension Settlement and Other Charges - 0.01 Non-Core Operations (0.12) (0.06) Adjusted Consolidated Net Operating Income Per Unrestricted Share $0.21 $1.67 Three Months Ended ​​($ in millions) Mar 31, 2026 Mar 31, 2025 Net (Loss) Income attributable to Kemper Corporation $(1.7) $99.7 Less Net (Loss) Income From: Change in Fair Value of Equity and Convertible Securities (1.0) 0.1 Net Realized Investment Gains 0.3 0.7 Impairment Losses (1.3) 0.2 Acquisition and Disposition Related Transaction, Integration, Restructuring and Other Costs (5.0) (4.2) Debt Extinguishment, Pension Settlement and Other Charges - 0.4 Non-Core Operations (7.2) (3.9) Adjusted Consolidated Net Operating Income $12.5 $106.4

 

Earnings Call Presentation – 1Q 2026 Non-GAAP Financial Measures Return on Adjusted Shareholders’ Equity 20 1 Average 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. Three Months Ended ​​($ in millions) Mar 31, 2026​ Mar 31, 2025 Annualized Net (Loss) Income attributable to Kemper Corporation $(6.8) $398.8 Average Shareholders’ Equity1 $2,665.5 $2,853.0 Less: Average Net Unrealized Losses on Fixed Maturities 601.5 667.6 Less: Average Change in Discount Rate on Future Life Policyholder Benefits (376.0) (373.2) Less: Average Goodwill (1,250.7) (1,250.7) Average Adjusted Shareholders’ Equity1 $1,640.3 $1,896.7 Return on Shareholders’ Equity (0.3)% 14.0% Return on Adjusted Shareholders’ Equity (0.4)% 21.0%

 

Earnings Call Presentation – 1Q 2026 Non-GAAP Financial Measures Adjusted Book Value Per Share 21 As of ​​($ and shares in millions except per share amounts) Mar 31, 2026​ Mar 31, 2025 Kemper Corporation Shareholders’ Equity $2,649.6 $2,917.6 Less: Net Unrealized Losses on Fixed Maturities 636.7 638.6 Less: Change in Discount Rate on Future Life Policyholder Benefits (401.1) (366.0) Less: Goodwill (1,250.7) (1,250.7) Adjusted Shareholders’ Equity $1,634.5 $1,939.5 Common Shares Issued and Outstanding 58.821 63.979 Book Value Per Share $45.05 $45.60 Less: Net Unrealized Losses on Fixed Maturities 10.82 9.98 Less: Change in Discount Rate on Future Life Policyholder Benefits (6.82) (5.72) Less: Goodwill (21.26) (19.55) Adjusted Book Value Per Share $27.79 $30.31

 

Earnings Call Presentation – 1Q 2026 Non-GAAP Financial Measures Underlying Combined Ratio 22 Three Months Ended 1Q’26 4Q’25 3Q’25 2Q’25 1Q’25 Specialty P&C Insurance Combined Ratio as Reported 106.7% 106.0% 104.8% 95.4% 92.7% Current Year Catastrophe Losses and LAE Ratio (0.1) (0.1) (0.1) (0.5) (0.4) Prior Years Non-Catastrophe Losses and LAE Ratio (0.4) (1.0) (5.1) (1.3) (0.1) Prior Years Catastrophe Losses and LAE Ratio - 0.1 - - - Underlying Combined Ratio 106.2% 105.0% 99.6% 93.6% 92.2% Personal Auto Insurance Combined Ratio as Reported 110.9% 110.1% 103.2% 94.4% 92.0% Current Year Catastrophe Losses and LAE Ratio (0.2) (0.2) (0.1) (0.5) (0.4) Prior Years Non-Catastrophe Losses and LAE Ratio 0.4 - (1.0) 0.6 0.6 Prior Years Catastrophe Losses and LAE Ratio (0.1) 0.1 - - - Underlying Combined Ratio 111.0% 110.0% 102.1% 94.5% 92.2% Commercial Auto Insurance Combined Ratio as Reported 95.1% 94.2% 110.0% 99.0% 95.3% Current Year Catastrophe Losses and LAE Ratio (0.1) (0.1) (0.2) (0.5) (0.5) Prior Years Non-Catastrophe Losses and LAE Ratio (2.6) (3.8) (18.7) (8.4) (2.5) Prior Years Catastrophe Losses and LAE Ratio - - - - Underlying Combined Ratio 92.4% 90.3% 91.1% 90.1% 92.3%

 

Earnings Call Presentation – 1Q 2026 Non-GAAP Financial Measures Underlying Combined Ratio 23 Three Months Ended 1Q’26 4Q’25 Specialty P&C Insurance – California PPA Combined Ratio 110.6% 108.1% Current Year Catastrophe Losses and LAE Ratio (0.1) - Prior Years Non-Catastrophe Losses and LAE Ratio (1.2) - Prior Years Catastrophe Losses and LAE Ratio (0.1) - Underlying Combined Ratio 109.2% 108.1% Specialty P&C Insurance – Florida1/Texas PPA Combined Ratio 88.6% 95.5% Current Year Catastrophe Losses and LAE Ratio (0.3) (0.5) Prior Years Non-Catastrophe Losses and LAE Ratio 5.4 (1.5) Prior Years Catastrophe Losses and LAE Ratio - - Underlying Combined Ratio 93.7% 93.5% 1 Adjusted for $35 and $28 million reduction to earned premium in 4Q’25 and 1Q’26, respectively, for estimated FL Statutory Profit Limit Refunds

 

Source: View Original Filing on SEC EDGAR

FAQ

How did Kemper (KMPB) perform financially in Q1 2026?

Kemper reported a small net loss of $1.7 million, or $(0.03) per share, in Q1 2026. This compares with net income of $99.7 million, or $1.54 per diluted share, in Q1 2025, reflecting a sharp year-over-year profit decline.

What was Kemper (KMPB)’s adjusted net operating income in Q1 2026?

Adjusted Consolidated Net Operating Income for Q1 2026 was $12.5 million, or $0.21 per share. This was substantially lower than the prior-year quarter’s $106.4 million, or $1.65 per diluted share, mainly due to weaker Specialty Property & Casualty performance.

Why did Kemper’s Specialty Property & Casualty segment weaken in Q1 2026?

Specialty Property & Casualty adjusted net operating income fell to $0.1 million from $97.9 million, primarily because Specialty Personal Automobile’s underlying loss and LAE ratio increased to 87.7%. Higher claim severity and frequency in California and a $28.0 million Florida refund contributed.

How did Kemper’s Specialty Commercial Automobile business perform in Q1 2026?

Specialty Commercial Automobile delivered comparatively strong results in Q1 2026. Earned premiums rose to $238.2 million, up from $208.5 million in Q1 2025, and the business produced an Underlying Combined Ratio of 92.4%, indicating profitable underwriting excluding catastrophes and prior-year development.

What were Kemper (KMPB)’s Q1 2026 revenues and main drivers of change?

Total revenues in Q1 2026 were $1,107.2 million, down from $1,193.0 million a year earlier. The decline was mainly driven by lower Specialty Personal Automobile volumes, a $28.0 million Florida statutory profit limit refund, and reduced earned premiums from run-off Non-Core Operations.

What is Kemper’s capital position and book value per share after Q1 2026?

As of March 31, 2026, Kemper reported $2,649.6 million of shareholders’ equity and total debt of $944.0 million. Book value per share was $45.05, while Adjusted Book Value Per Share, excluding certain items, was $27.79, both slightly lower than year-end 2025.

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