Kemper Corporation (NYSE:KMPR) reported net income of $97.4 million, or $1.51 per diluted share, for the fourth quarter of 2024, compared to net income of $51.4 million, or $0.80 per diluted share, for the fourth quarter of 2023.

Adjusted Consolidated Net Operating Income¹ was $115.1 million, or $1.78 per diluted share, for the fourth quarter of 2024, compared to Adjusted Consolidated Net Operating Income¹of $50.5 million, or $0.78 per diluted share, for the fourth quarter of 2023.

Key themes of the quarter include:

Delivered another quarter of strong operating and financial results
Generated a 14.0% ROE and a 21.4% Adjusted ROE¹ for the quarter; 11.9% and 18.3%, respectively, for FY'24
Specialty P&C achieved 5.1% YoY (1.8% QoQ) PIF growth; 91.5% annual underlying combined ratio¹ (91.7% quarterly)
Life business continued to generate strong return on capital and distributable cash flows
Parent liquidity remains strong at $1.3 billion; repurchased ~$14 million of stock, increased quarterly dividend, and retiring $450 million of senior notes due February 2025

"I'm pleased to report that we delivered very strong results for the year and even stronger results for the quarter," said Joseph P. Lacher, Jr., President and CEO. "Our core businesses are performing very well, led by Specialty Auto's operating results including solid policies in force growth and an underlying combined ratio outperforming long-term expectations. We further strengthened our balance sheet, providing us with ongoing financial flexibility. Our competitive advantages position us very well to continue to meet the needs of our underserved markets, grow our business, and deliver strong financial results."

*Unless otherwise specified, discussion of our fourth quarter 2024 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.

¹Non-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						Year Ended
(Dollars in Millions, Except Per Share Amounts) (Unaudited)	Dec 31, 2024			Dec 31, 2023			Dec 31, 2024			Dec 31, 2023
Net Income (Loss)	$	97.4		$	51.4		$	317.8		$	(272.1	)
Adjusted Consolidated Net Operating Income (Loss)¹	$	115.1		$	50.5		$	381.5		$	(47.2	)

Impact of Catastrophe Losses and Related Loss Adjustment Expense (LAE) on Net Income (Loss)	$	(4.3	)	$	(8.3	)	$	(51.6	)	$	(76.4	)

Diluted Net Income (Loss) Per Share From:
Net Income (Loss)	$	1.51		$	0.80		$	4.91		$	(4.25	)
Adjusted Consolidated Net Operating Income (Loss)¹	$	1.78		$	0.78		$	5.89		$	(0.74	)

Impact of Catastrophe Losses and Related LAE on Net Income (Loss) Per Share	$	(0.07	)	$	(0.16	)	$	(0.80	)	$	(1.51	)

Revenues

Total revenues for the fourth quarter of 2024 decreased $0.4 million to $1,186.8 million compared to the fourth quarter of 2023 that included an $82.4 million reduction in earned premium from our Non-Core Operations, due primarily to lower volumes resulting from the exit and run-off of the Preferred Insurance business, offset by an $89.2 million increase in Specialty Property & Casualty Insurance earned premiums resulting from higher new business volumes and higher average earned premium per exposure from rate increases.

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						Year Ended
(Dollars in Millions) (Unaudited)	Dec 31, 2024			Dec 31, 2023			Dec 31, 2024			Dec 31, 2023
Segment Adjusted Net Operating Income (Loss):
Specialty Property & Casualty Insurance	$	101.2		$	45.3		$	376.3		$	(57.1	)
Life Insurance		23.5			15.0			50.2			51.8
Total Segment Adjusted Net Operating Income		124.7			60.3			426.5			(5.3	)
Corporate and Other Adjusted Net Operating Loss		(11.3	)		(9.9	)		(50.3	)		(42.1	)
Less: Net Loss attributable to Noncontrolling Interest		(1.7	)		(0.1	)		(5.3	)		(0.2	)
Adjusted Consolidated Net Operating Income (Loss)¹		115.1			50.5			381.5			(47.2	)
Net Income (Loss) From:
Change in Fair Value of Equity and Convertible Securities		(2.0	)		(1.8	)		(2.1	)		3.7
Net Realized Investment Gains (Losses)		3.1			15.6			10.4			(14.7	)
Impairment Losses		(1.6	)		(1.0	)		(4.6	)		(0.9	)
Acquisition and Disposition Related Transaction, Integration, Restructuring and Other Costs		(7.5	)		(14.4	)		(31.8	)		(95.0	)
Debt Extinguishment, Pension Settlement and Other Charges		(7.3	)		—			(7.4	)		(55.5	)
Goodwill Impairment Charge		—			—			—			(45.5	)
Non-Core Operations		(2.4	)		2.5			(28.2	)		(17.0	)
Net Income (Loss) attributable to Kemper Corporation	$	97.4		$	51.4		$	317.8		$	(272.1	)

The Specialty Property and Casualty Insurance segment reported adjusted net operating income of $101.2 million for the fourth quarter of 2024, compared to adjusted net operating income of $45.3 million in the fourth quarter of 2023. This increase was due primarily to an improvement in the Underlying Combined Ratio¹. The segment's Underlying Combined Ratio¹ was 91.7 percent compared to 98.2 percent in the fourth quarter of 2023. The improvement was primarily driven by higher average earned premiums per exposure resulting from rate increases and lower underlying claim frequency.

The Life Insurance segment reported adjusted net operating income of $23.5 million for the fourth quarter of 2024, compared to adjusted net operating income of $15.0 million in the fourth quarter of 2023, primarily driven by favorable mortality experience from life insurance products.

Capital

Total Kemper Corporation Shareholders' Equity as of December 31, 2024 was $2,788.4 million, an increase of $283.2 million, or 11 percent, since year-end 2023 primarily driven by net income for the year. Kemper and its direct non-insurance subsidiaries ended the quarter with cash and investments of $547.6 million, and $512.0 million of available borrowing capacity under the revolving credit agreement.

On November 7, 2024, Kemper announced that its Board of Directors declared a quarterly dividend of $0.31 per share, or $20.0 million. The dividend was paid on December 4, 2024, to its shareholders of record as of November 18, 2024.

Kemper ended the year with a book value per share of $43.68, an increase of 12 percent from $39.08 at the end of 2023. Adjusted book value per share¹ was $29.04 at the end of the year, compared to $25.39 at the end of 2023.

Unaudited Condensed Consolidated Statements of Income (Loss) for the three months and year ended December 31, 2024 and 2023 are presented below.

	Three Months Ended						Year Ended
(Dollars in Millions, Except Per Share Amounts)	Dec 31, 2024			Dec 31, 2023			Dec 31, 2024			Dec 31, 2023
Revenues:
Earned Premiums¹	$	1,081.8		$	1,063.8		$	4,215.9		$	4,529.4
Net Investment Income		103.0			104.6			407.5			419.7
Change in Value of Alternative Energy Partnership Investments		0.8			0.6			2.3			2.9
Other Income		1.8			1.9			8.2			7.2
Change in Fair Value of Equity and Convertible Securities		(2.6	)		(2.2	)		(2.7	)		4.7
Net Realized Investment Gains (Losses)		4.0			19.7			13.2			(18.6	)
Impairment Losses		(2.0	)		(1.2	)		(5.8	)		(1.1	)
Total Revenues		1,186.8			1,187.2			4,638.6			4,944.2
Expenses:
Policyholders' Benefits and Incurred Losses and Loss Adjustment Expenses²		743.4			808.1			3,013.1			3,820.0
Insurance and Other Expenses		309.5			301.7			1,180.1			1,365.6
Interest Expense		14.6			13.9			56.9			56.1
Goodwill Impairment		—			—			—			49.6
Total Expenses		1,067.5			1,123.7			4,250.1			5,291.3
Income (Loss) before Income Taxes		119.3			63.5			388.5			(347.1	)
Income Tax Expense (Benefit)		23.6			12.2			76.0			(74.8	)
Net Income (Loss)		95.7			51.3			312.5			(272.3	)
Less: Net Loss attributable to Noncontrolling Interest		(1.7	)		(0.1	)		(5.3	)		(0.2	)
Net Income (Loss) attributable to Kemper Corporation	$	97.4		$	51.4		$	317.8		$	(272.1	)

Net Income (Loss) attributable to Kemper Corporation per Unrestricted Share:
Basic	$	1.52		$	0.80		$	4.95		$	(4.25	)
Diluted	$	1.51		$	0.80		$	4.91		$	(4.25	)

Weighted-average Outstanding (Shares in Thousands):
Unrestricted Shares - Basic		63,858.6			64,088.3			64,179.5			64,025.6
Unrestricted Shares and Equivalent Shares - Diluted		64,631.8			64,566.0			64,776.0			64,025.6

Dividends Paid to Shareholders per Share	$	0.31		$	0.31		$	1.24		$	1.24

¹ Includes a remeasurement loss related to the deferred profit liability within the Life Insurance business of $6.0 million and $7.2 million for the three months and year ended December 31, 2024, respectively, and a remeasurement loss of $17.3 million and $19.1 million for the three months and year ended December 31, 2023, respectively.
² Includes a remeasurement gain related to the liability for future policyholder benefits within the Life Insurance business of $16.5 million and $19.2 million for the three months and year ended December 31, 2024, respectively, and a remeasurement gain of $27.2 million and $30.3 million for the three months and year ended December 31, 2023, respectively.

Unaudited business segment revenues for the three months and year ended December 31, 2024 and 2023 are presented below.

	Three Months Ended						Year Ended
(Dollars in Millions)	Dec 31, 2024			Dec 31, 2023			Dec 31, 2024			Dec 31, 2023
REVENUES:
Specialty Property & Casualty Insurance:
Earned Premiums:
Personal Automobile	$	753.3		$	699.3		$	2,851.4		$	2,977.8
Commercial Automobile		201.5			166.3			725.0			654.7
Total Earned Premiums		954.8			865.6			3,576.4			3,632.5
Net Investment Income		49.9			42.6			189.6			168.3
Change in Value of Alternative Energy Partnership Investments		0.6			0.3			1.4			1.6
Other Income		0.9			1.3			4.7			4.5
Total Specialty Property & Casualty Insurance Revenues		1,006.2			909.8			3,772.1			3,806.9
Life Insurance:
Earned Premiums:
Life¹		78.9			67.3			328.1			319.2
Accident & Health		5.5			5.6			22.3			23.1
Property		10.8			11.1			43.5			45.3
Total Earned Premiums		95.2			84.0			393.9			387.6
Net Investment Income		45.5			47.1			170.6			193.4
Change in Value of Alternative Energy Partnership Investments		0.2			0.1			0.6			0.7
Other Income (Loss)		0.2			0.2			0.5			(0.2	)
Total Life Insurance Revenues		141.1			131.4			565.6			581.5
Total Segment Revenues		1,147.3			1,041.2			4,337.7			4,388.4
Change in Fair Value of Equity and Convertible Securities		(2.6	)		(2.2	)		(2.7	)		4.7
Net Realized Investment Gains (Losses)		4.0			19.7			13.2			(18.6	)
Net Impairment Losses Recognized in Earnings		(2.0	)		(1.2	)		(5.8	)		(1.1	)
Non-Core Operations		37.6			126.7			282.4			558.4
Other Income		2.5			3.0			13.8			12.4
Total Revenues	$	1,186.8		$	1,187.2		$	4,638.6		$	4,944.2

¹Earned premiums were impacted by changes in deferred profit liability related to the annual review and assumptions update under LDTI that decreased earned premiums by $4.8 million in the fourth quarter and full year 2024 and decreased earned premiums by $15.0 million in the fourth quarter and full year 2023.


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

	Dec 31, 2024		Dec 31, 2023
Assets:
Investments:
Fixed Maturities at Fair Value	$	6,409.6	$	6,881.9
Equity Securities at Fair Value		218.5		225.8
Equity Method Limited Liability Investments		186.3		221.7
Alternative Energy Partnership Investments		17.6		17.3
Short-term Investments at Cost which Approximates Fair Value		1,037.1		520.9
Company-Owned Life Insurance		539.2		513.5
Loans to Policyholders		280.7		281.2
Other Investments		199.5		241.9
Total Investments		8,888.5		8,904.2
Cash		64.4		64.1
Receivables from Policyholders		977.9		959.5
Other Receivables		185.7		200.5
Deferred Policy Acquisition Costs		628.9		591.6
Goodwill		1,250.7		1,250.7
Current Income Tax Assets		63.4		64.5
Deferred Income Tax Assets		93.3		210.4
Other Assets		436.1		492.6
Assets of Consolidated Variable Interest Entity
Fixed Maturities at Fair Value		1.7		1.7
Short-term Investments at Cost which Approximates Fair Value		28.0		2.0
Receivables from Policyholders		8.2		0.7
Deferred Policy Acquisition Costs		1.1		0.1
Deferred Income Tax Assets		1.5		—
Other Assets		—		0.1
Total Assets	$	12,630.4	$	12,742.7


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

	Dec 31, 2024			Dec 31, 2023

Liabilities and Shareholders' Equity:
Insurance Reserves:
Life & Health	$	3,199.7		$	3,422.4
Property & Casualty		2,611.9			2,680.5
Total Insurance Reserves		5,811.6			6,102.9
Unearned Premiums		1,264.1			1,300.8
Policyholder Obligations		637.7			655.7
Deferred Income Tax Liabilities		14.8			50.6
Accrued Expenses and Other Liabilities		705.2			737.7
Long-term Debt, Current, at Amortized Cost		449.9			—
Long-term Debt, Non-current, at Amortized Cost		941.7			1,389.2
Liabilities of Consolidated Variable Interest Entity
Insurance Reserves		9.4			—
Unearned Premiums		11.2			0.5
Accrued Expenses and Other Liabilities		0.5			0.3
Total Liabilities		9,846.1			10,237.7
Kemper Corporation Shareholders' Equity:
Common Stock		6.4			6.4
Paid-in Capital		1,854.9			1,845.3
Retained Earnings		1,231.6			1,014.3
Accumulated Other Comprehensive Loss		(304.5	)		(360.8	)
Total Kemper Corporation Shareholders' Equity		2,788.4			2,505.2
Noncontrolling Interest		(4.1	)		(0.2	)
Total Shareholders' Equity		2,784.3			2,505.0
Total Liabilities and Shareholders' Equity	$	12,630.4		$	12,742.7

Unaudited selected financial information for the Specialty Property & Casualty Insurance segment follows.

	Three Months Ended						Year Ended
(Dollars in Millions)	Dec 31, 2024			Dec 31, 2023			Dec 31, 2024			Dec 31, 2023

Results of Operations
Net Premiums Written	$	948.9		$	719.7		$	3,685.4		$	3,305.4

Earned Premiums	$	954.8		$	865.6		$	3,576.4		$	3,632.5
Net Investment Income		49.9			42.6			189.6			168.3
Change in Value of Alternative Energy Partnership Investments		0.6			0.3			1.4			1.6
Other Income		0.9			1.3			4.7			4.5
Total Revenues		1,006.2			909.8			3,772.1			3,806.9
Incurred Losses and LAE related to:
Current Year:
Non-catastrophe Losses and LAE		668.8			673.1			2,514.8			2,974.5
Catastrophe Losses and LAE		1.9			2.5			19.9			34.5
Prior Years:
Non-catastrophe Losses and LAE		1.9			(0.2	)		6.3			135.2
Catastrophe Losses and LAE		(0.1	)		0.1			0.7			(2.3	)
Total Incurred Losses and LAE		672.5			675.5			2,541.7			3,141.9
Insurance Expenses		207.0			177.7			759.5			741.3
Segment Adjusted Operating Income (Loss)		126.7			56.6			470.9			(76.3	)
Income Tax Expense (Benefit)		25.5			11.3			94.6			(19.2	)
Total Segment Adjusted Net Operating Income (Loss)	$	101.2		$	45.3		$	376.3		$	(57.1	)

Ratios Based On Earned Premiums
Current Year Non-catastrophe Losses and LAE Ratio		70.0	%		77.7	%		70.3	%		82.0	%
Current Year Catastrophe Losses and LAE Ratio		0.2			0.3			0.6			0.9
Prior Years Non-catastrophe Losses and LAE Ratio		0.2			—			0.2			3.7
Prior Years Catastrophe Losses and LAE Ratio		—			—			—			(0.1	)
Total Incurred Loss and LAE Ratio		70.4			78.0			71.1			86.5
Insurance Expense Ratio		21.7			20.5			21.2			20.4
Combined Ratio		92.1	%		98.5	%		92.3	%		106.9	%

Underlying Combined Ratio¹
Current Year Non-catastrophe Losses and LAE Ratio		70.0	%		77.7	%		70.3	%		82.0	%
Insurance Expense Ratio		21.7			20.5			21.2			20.4
Underlying Combined Ratio¹		91.7	%		98.2	%		91.5	%		102.4	%

Non-GAAP Measure Reconciliation
Combined Ratio		92.1	%		98.5	%		92.3	%		106.9	%
Less:
Current Year Catastrophe Losses and LAE Ratio		0.2			0.3			0.6			0.9
Prior Years Non-catastrophe Losses and LAE Ratio		0.2			—			0.2			3.7
Prior Years Catastrophe Losses and LAE Ratio		—			—			—			(0.1	)
Underlying Combined Ratio¹		91.7	%		98.2	%		91.5	%		102.4	%

Unaudited selected financial information for the Life Insurance segment follows.

	Three Months Ended				Year Ended
(Dollars in Millions)	Dec 31, 2024		Dec 31, 2023		Dec 31, 2024		Dec 31, 2023

Results of Operations
Earned Premiums	$	95.2	$	84.0	$	393.9	$	387.6
Net Investment Income		45.5		47.1		170.6		193.4
Change in Value of Alternative Energy Partnership Investments		0.2		0.1		0.6		0.7
Other Income (Loss)		0.2		0.2		0.5		(0.2	)
Total Revenues		141.1		131.4		565.6		581.5
Policyholders' Benefits and Incurred Losses and LAE		43.5		40.5		234.5		243.4
Insurance Expenses		69.2		71.0		272.1		275.8
Segment Adjusted Operating Income		28.4		19.9		59.0		62.3
Income Tax Expense		4.9		4.9		8.8		10.5
Total Segment Adjusted Net Operating Income	$	23.5	$	15.0	$	50.2	$	51.8

Use of Non-GAAP Financial Measures

Adjusted Consolidated Net Operating Income (Loss)¹is an after-tax, non-GAAP financial measure and is computed by excluding from Net Income (Loss) 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 Income (Loss) attributable to Kemper Corporation. There were no applicable significant non-recurring items that Kemper excluded from the calculation of Adjusted Consolidated Net Operating Income (Loss)¹ for the three months and year ended December 31, 2024 or 2023.

Kemper believes that Adjusted Consolidated Net Operating Income (Loss)¹ 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 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. 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 Income (Loss) attributable to Kemper Corporation to Adjusted Consolidated Net Operating Income (Loss)¹ for the three months and year ended December 31, 2024 and 2023 is presented below.

	Three Months Ended						Year Ended
(Dollars in Millions) (Unaudited)	Dec 31, 2024			Dec 31, 2023			Dec 31, 2024			Dec 31, 2023
Net Income (Loss) attributable to Kemper Corporation	$	97.4		$	51.4		$	317.8		$	(272.1	)
Less Net (Loss) Income From:
Change in Fair Value of Equity and Convertible Securities		(2.0	)		(1.8	)		(2.1	)		3.7
Net Realized Investment Gains (Losses)		3.1			15.6			10.4			(14.7	)
Impairment Losses		(1.6	)		(1.0	)		(4.6	)		(0.9	)
Acquisition and Disposition Related Transaction, Integration, Restructuring and Other Costs		(7.5	)		(14.4	)		(31.8	)		(95.0	)
Debt Extinguishment, Pension Settlement and Other Charges		(7.3	)		—			(7.4	)		(55.5	)
Goodwill Impairment Charge		—			—			—			(45.5	)
Non-Core Operations		(2.4	)		2.5			(28.2	)		(17.0	)
Adjusted Consolidated Net Operating Income (Loss)¹	$	115.1		$	50.5		$	381.5		$	(47.2	)

Diluted Adjusted Net Operating Income (Loss) per Unrestricted Share¹is a non-GAAP financial measure computed by dividing Adjusted Net Operating Income (Loss)¹ attributed to unrestricted shares by the weighted-average unrestricted shares and equivalent shares outstanding. The most directly comparable GAAP financial measure is Diluted Net Loss per Unrestricted Share.

A reconciliation of Diluted Net Income (Loss) per Unrestricted Share to Diluted Adjusted Net Operating Income (Loss) per Unrestricted Share¹ for the three months and year ended December 31, 2024 and 2023 is presented below.

	Three Months Ended						Year Ended
(Unaudited)	Dec 31, 2024			Dec 31, 2023			Dec 31, 2024			Dec 31, 2023
Diluted Net Income (Loss) attributable to Kemper Corporation per Unrestricted Share	$	1.51		$	0.80		$	4.91		$	(4.25	)
Less Net (Loss) Income per Unrestricted Share From:
Change in Fair Value of Equity and Convertible Securities		(0.03	)		(0.03	)		(0.03	)		0.06
Net Realized Investment Gains (Losses)		0.06			0.24			0.18			(0.23	)
Impairment Losses		(0.03	)		(0.01	)		(0.08	)		(0.01	)
Acquisition and Disposition Related Transaction, Integration, Restructuring and Other Costs		(0.12	)		(0.22	)		(0.50	)		(1.49	)
Debt Extinguishment, Pension Settlement and Other Charges		(0.11	)		—			(0.11	)		(0.87	)
Goodwill Impairment Charge		—			—			—			(0.71	)
Non-Core Operations		(0.04	)		0.04			(0.44	)		(0.26	)
Diluted Adjusted Net Operating Income (Loss) per Unrestricted Share¹	$	1.78		$	0.78		$	5.89		$	(0.74	)

Return on Adjusted Shareholders' Equity¹ is a calculation that uses a non-GAAP financial measure. It is calculated by dividing the period's 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. 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' Equity¹ is presented below:

	Three Months Ended						Year Ended
(Dollars in Millions) (Unaudited)	Dec 31, 2024			Dec 31, 2023			Dec 31, 2024			Dec 31, 2023
Numerator:
Annualized Net Income (Loss) attributable to Kemper Corporation	$	389.6		$	205.6		$	317.8		$	(272.1	)

Denominator:
Average Shareholders' Equity²	$	2,780.9		$	2,433.3		$	2,665.6		$	2,539.2

Less: Average Net Unrealized Losses on Fixed Maturities		576.1			716.9			598.1			673.1
Less: Average Change in Discount Rate on Future Life Policyholder Benefits		(286.6	)		(286.7	)		(272.8	)		(232.6	)
Less: Average Goodwill		(1,250.7	)		(1,250.7	)		(1,250.7	)		(1,270.5	)
Average Adjusted Shareholders' Equity²	$	1,819.7		$	1,652.8		$	1,740.2		$	1,709.2

Return on Shareholders' Equity:
Return on Shareholders' Equity		14.0	%		8.4	%		11.9	%		(10.7	)%
Return on Adjusted Shareholders' Equity¹		21.4	%		12.7	%		18.3	%		(15.9	)%

²Average shareholders' equity and average adjusted shareholders' equity for the three months and year 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 Ratio¹is 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.

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. 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 Share¹ is presented below:

	As of
(Dollars and Shares in Millions Except Per Share Amounts) (Unaudited)	Dec 31, 2024			Dec 31, 2023
Numerator:
Kemper Corporation Shareholders' Equity	$	2,788.4		$	2,505.2

Less: Net Unrealized Losses on Fixed Maturities		696.5			533.8
Less: Change in Discount Rate on Future Life Policyholder Benefits		(380.3	)		(160.6	)
Less: Goodwill		(1,250.7	)		(1,250.7	)
Adjusted Shareholders' Equity	$	1,853.9		$	1,627.7

Denominator:
Common Shares Issued and Outstanding		63.840			64.112

Book Value Per Share:
Book Value Per Share	$	43.68		$	39.08

Less: Net Unrealized Losses on Fixed Maturities		10.91			8.33
Less: Change in Discount Rate on Future Life Policyholder Benefits		(5.96	)		(2.51	)
Less: Goodwill		(19.59	)		(19.51	)
Adjusted Book Value Per Share¹	$	29.04		$	25.39

Conference Call

Kemper will host its conference call to discuss fourth quarter 2024 results on Wednesday, February 5, at 5:00 p.m. Eastern (4:00 p.m. Central). The conference call will be accessible via the internet and by telephone at 888.259.6580, Conference ID 79586. 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 fourth quarter of 2024, which is available at the investor section of kemper.com.

About Kemper

The Kemper family of companies is one of the nation's leading specialized insurers. With approximately $13 billion in assets, Kemper is improving the world of insurance by providing affordable and easy-to-use personalized solutions to individuals, families and businesses through its Kemper Auto and Kemper Life brands. Kemper serves over 4.7 million policies, is represented by approximately 22,200 agents and brokers, and has approximately 7,400 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 the interest rate environment;
supply chain disruption;
product demand and pricing;
effects of governmental and regulatory actions;
litigation outcomes and trends;
investment risks;
cybersecurity risks 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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250205566308/en/

Investors: Michael Marinaccio 312.661.4930 or investors@kemper.com

Media: Barbara Ciesemier 312.661.4521 or bciesemier@kemper.com

Kemper Reports Fourth Quarter 2024 Operating Results*