Kemper Corporation · NYSE:KMPR

Kemper — Q2 2025 Earnings Presentation

18 slides from Kemper's earnings presentation, Aug 5, 2025

  1. Slide 1: Second Quarter 2025 Earnings

    Second Quarter 2025 Earnings August 5, 2025 Earnings Call Presentation – 2Q 2025

  2. Slide 2: Preliminary Matters

    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 A

  3. Slide 3: Leading Insurer Empowering Specialty and Underserved Markets

    Leading Insurer Empowering Specialty and Underserved Markets Enabled by a dynamic, innovative team with broad expertise who act like owners Delivering appropriate and affordable insurance and financial solutions Specialty auto insurance1 for Life insurance2 for underserved markets; Latino, low/moder

  4. Slide 4: Second Quarter 2025 Summary

    Second Quarter 2025 Summary Strong underlying operating results continued as auto market competition increased Strong Return on Adjusted Equity1 and Adjusted BVPS1 accretion • 2Q’25 Net Income attributable to Kemper Corporation of $72.6 million or $1.12 per diluted share Shareholder • 2Q’25 Adjusted

  5. Slide 5: Second Quarter 2025 Financial Summary

    Second Quarter 2025 Financial Summary Delivered another quarter of solid financial results Quarter Ended ($ in millions, except per share amounts) Jun 30, 2025 Jun 30, 2024 Net Income Per Diluted Share attributable to Kemper Corporation $1.12 $1.16 Adj. Consolidated Net Operating Income – Per Dilute

  6. Slide 6: Diversified Investment Portfolio with Consistent Returns

    Diversified Investment Portfolio with Consistent Returns Net Investment Income1 Highlights • High-quality portfolio provides consistent ($ in millions) $111 $93 $103 $101 $96 net investment income; 71% of fixed income $10 $4 $3 portfolio rated A or higher • 4.5% pre-tax equivalent (PTE) annualized b

  7. Slide 7: Well-Capitalized Insurance Subsidiaries

    Well-Capitalized Insurance Subsidiaries Strong balance sheet with significant financial flexibility Parent Company Liquidity Risk-Based Capital Ratios¹ HoldCo Cash & Investments Life2 Borrowings Available Under Credit P&C3 Agreement & from Subs $1,433 $1,348 $1,336 (%) $1,148 $1,111 ($ in millions)

  8. Slide 8: Specialty Property & Casualty Insurance Segment

    Specialty Property & Casualty Insurance Segment Delivered strong margins and YoY PIF growth Highlights Year-Over-Year Growth2 • Underlying Combined Ratio1 of 93.6% 2Q'25 TTM % of YoY – Private Passenger Auto: 94.5% DWP DWP PIF Growth – Commercial Auto: 90.1% Private Passenger Auto California $2,081

  9. Slide 9: Life Insurance Segment

    Life Insurance Segment Business trends remained stable Highlights • Earned premiums remain stable; face value of in-force relatively flat to prior year • Lapse performance in-line with historical trends • Mortality in-line with historical experience1 Normalized Revenues3 ($ in millions) Metrics $151

  10. Slide 10: Key Takeaways

    Key Takeaways Delivered solid operating results • 14.9% Adjusted ROE1 • Adjusted BVPS1 increased ~14% YoY Specialty Auto produced strong underlying results • Underlying combined ratio1 of 93.6% • Written Premium increased ~7%, Earned Premium up ~17% • PIF grew by ~8% Competitive advantages provide c

  11. Slide 11: Appendix

    Appendix Earnings Call Presentation – 2Q 2025 11

  12. Slide 12: 2025 Reinsurance Program

    2025 Reinsurance Program Catastrophe XoL Reinsurance Catastrophe Reinsurance Program Highlights Catastrophe Excess of Loss Program (XOL): 5% co-participation 1-Year Term • One year program consists of two layers: Layer 2: Placed 1/1/25 – $60 million excess $50 million $65M xs $110M 95% Placed – $65

  13. Slide 13: Non-GAAP Financial Measures

    Non-GAAP Financial Measures Adjusted Consolidated Net Operating Income is an after-tax, non-GAAP financial measure and is computed by excluding from Net Income attributable to Kemper Corporation the after-tax impact of: (i) Change in Fair Value of Equity and Convertible Securities; (ii) Net Realized

  14. Slide 14: Non-GAAP Financial Measures

    Non-GAAP Financial Measures 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 Income attributable to Kemper Corporation by the average shareholders’ equity excluding net unrealized gains and losse

  15. Slide 15: Non-GAAP Financial Measures

    Non-GAAP Financial Measures Adjusted Consolidated Net Operating Income attributable to Kemper Corporation Three Months Ended ​($ in millions) Jun 30, 2025 Jun 30, 2024 Net Income attributable to Kemper Corporation $72.6 $75.4 Less Net (Loss) Income From: Change in Fair Value of Equity and Convertibl

  16. Slide 16: Non-GAAP Financial Measures

    Non-GAAP Financial Measures Return on Adjusted Shareholders’ Equity Three Months Ended ​($ in millions) Jun 30, 2025​ Jun 30, 2024 Annualized Net Income attributable to Kemper Corporation $290.4 $301.6 Average Shareholders’ Equity1 $2,935.5 $2,630.5 Less: Average Net Unrealized Losses on Fixed Matur

  17. Slide 17: Non-GAAP Financial Measures

    Non-GAAP Financial Measures Adjusted Book Value Per Share As of ​($ and shares in millions except per share amounts) Jun 30, 2025​ Jun 30, 2024 Kemper Corporation Shareholders’ Equity $2,953.4 $2,671.2 Less: Net Unrealized Losses on Fixed Maturities 638.6 685.9 Less: Change in Discount Rate on Futur

  18. Slide 18: Non-GAAP Financial Measures

    Non-GAAP Financial Measures Underlying Combined Ratio Three Months Ended 2Q’25 1Q’25 4Q’24 3Q’24 2Q’24 Specialty P&C Insurance Combined Ratio as Reported 95.4% 92.7% 92.1% 91.7% 90.7% Current Year Catastrophe Losses and LAE Ratio (0.5) (0.4) (0.2) (0.4) (1.2) Prior Years Non-Catastrophe Losses and L

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