Kemper : 2Q 2021 Earnings Call Presentation

Second Quarter 2021 Earnings

July 29, 2021

Earnings Call Presentation - 2Q 2021

Preliminary Matters

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. Forward-looking statements give expectations or forecasts of future events and can be identified by the fact that they relate to future actions, performance or results rather than strictly to historical or current facts.

Any or all forward-looking statements may turn out to be wrong, and, accordingly, readers are cautioned not to place undue reliance on such statements, which speak only as of the date of this presentation. Forward-looking statements involve a number of risks and uncertainties that are difficult to predict and are not guarantees of future performance. Among the general factors that could cause actual results and financial condition to differ materially from estimated results and financial condition are those factors listed in periodic reports filed by Kemper Corporation with the Securities and Exchange Commission ("SEC"). The COVID-19 outbreak and subsequent global pandemic ("Pandemic") is an extraordinary event that creates unique uncertainties and risks. Kemper cannot provide any assurances as to the impacts of the Pandemic and related economic conditions on the Company's operating and financial results.

No assurances can be given that the results and financial condition contemplated in any forward-looking statements will be achieved or will be achieved in any particular timetable. 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, including any such statements related to the Pandemic. The reader is advised, however, to consult any further disclosures Kemper makes on related subjects in its filings with the SEC.

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.

Earnings Call Presentation - 2Q 2021

2

Create Long-Term Shareholder Value

Leverage competitive advantages to grow returns and BVPS1 over time

Sustainable competitive

Diversified sources of earnings;

Growing returns

advantages and build

Strong capital/liquidity

and book value per

core capabilities

Strategic focus:

positions; Disciplined approach to capital management

share over time

Consumer-related businesses with opportunities that:

• Target specialty markets
• Have limited, weak or unfocused competition
• Require unique expertise (underwriting, claim, distribution, analytics and other)

Deliver low double-digit ROE2 over time

¹ Book value per share	Earnings Call Presentation - 2Q 2021	3
2 Return on equity

Second Quarter 2021 Highlights

Swift re-opening from Pandemic creates short-term headwinds to auto insurance businesses

Shareholder

Value Creation

Near-term environmental pressures but well positioned to produce long-term shareholder value

• Net loss of $63 million ($0.97 per share), as reported, or $53 million ($0.82 per share), as adjusted
• Adjusted consolidated net operating loss1 of $99 million ($1.54 per share), as reported, or $89 million ($1.39 per share), as adjusted
• 6% ROAE2, 11% ROAE2 excluding net unrealized gains on fixed maturities and goodwill1
• BVPS ex. net unrealized gains on fixed maturities and goodwill1 decreased 1% (AAC goodwill 8% dilutive)
• Generated $422 million of operating cash flow over the trailing 12 months
• Closed on American Access Casualty ("AAC") acquisition April 1

2nd Quarter

Overview

Capital

Management

and Financial

Strength

Strong growth offset by a number of industry-related environmental challenges

• Specialty P&C produced strong PIF3 and DWP3,4 growth of 5.5% and 13.2% excluding Classic Car
• Earnings were pressured in P&C by environmental trends impacting frequency and severity and by certain Florida PIP5 rulings
• Life & Health experienced improved sales and higher persistency; COVID-related mortality subsiding

Strong capital and liquidity position continues to provide financial flexibility

• Repurchased $112 million worth of shares in 2Q'21
• Holding company remains a source of strength for subsidiaries with more than $900 million of liquidity
• Debt-to-capitalratio of 20.7% is within target range of 17-22%

¹ Non-GAAP financial measure; please see reconciliation in appendix on pages 23-33;2 Return on average	Earnings Call Presentation - 2Q 2021		4
shareholders' equity (5-point average); 3 As adjusted for acquisition; see reconciliation on Pages 23-33;
4 Normalized for premium credits; 5 Personal Injury Protection

Second Quarter Financial Highlights

11% ROATCE and TBV per common share excluding unrealized gains1 decreased 1% primarily due to AAC

		As Reported	As Adjusted1
		Quarter Ended	Quarter Ended
		Jun 30,	Jun 30,	Jun 30,	Jun 30,
(Dollars in millions, except per share amounts)	2021	2020		2021	2020
Net Income	$(63)	$126		$(53)	$149
Net Income - Per Diluted Share	$(0.97)	$1.91		$(0.82)	$2.25
Adjusted Consolidated Net Operating Income1	$(99)	$79		$(89)	$97
Adj. Consolidated Net Op. Income - Per Diluted Share1	$(1.54)	$1.20		$(1.39)	$1.47
Catastrophe Losses	$35	$28
Tangible Book Value Per Common Share excluding unrealized gains1	$37.77	$38.07		AAC goodwill diluted
Return on Avg. Tangible Common Equity1	10.8%	18.8%		TBVPS by $3.07
Dividend Paid to Shareholders Per Share	$0.31	$0.30
Specialty PIF growth (ex. Classic Car)	19.4%	7.5%		5.5%	6.8%

Anticipated environmental challenges emerged more rapidly than expected;

taking proactive corrective actions to return to target profitability

¹ Non-GAAP financial measure; please see reconciliation in appendix on pages 23-33
Earnings Call Presentation - 2Q 2021	5