Kemper Corporation · NYSE:KMPR
Kemper — Q4 2025 Earnings Presentation
21 slides from Kemper's earnings presentation, Feb 4, 2026
Slide 1: Fourth Quarter 2025 Earnings
Fourth Quarter 2025 Earnings February 4, 2026 Earnings Call Presentation – 4Q 2025
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
Slide 3: Leading Insurer Empowering Specialty and Underserved Markets
Leading Insurer Empowering Specialty and Underserved Markets Delivering appropriate and affordable insurance and financial solutions Specialty auto insurance1 for Life insurance2 for underserved markets; Latino, low/moderate income Hispanic and urban areas customers Market Sizable Require Unique Hav
Slide 4: Quarter At a Glance
Quarter At a Glance 1 Results underperformed expectations driven by continued bodily injury severity and several infrequent items 2 Filed for rate and implemented non-rate actions to restore profitability 3 Implementing efficiency initiatives to reduce costs, optimizing organizational structure, and
Slide 5: Taking Actions to Improve Profitability and Drive Value
Taking Actions to Improve Profitability and Drive Value Focused on disciplined execution, operational excellence, and efficiency across the business ✓ Launched CEO search led by the Board and assisted by an executive search firm Leadership Changes ✓ Implemented leadership changes in claims and techn
Slide 6: Fourth Quarter 2025 Summary
Fourth Quarter 2025 Summary Specialty P&C performance impacted by competitive and severity pressures Financial results below expectations driven by market dynamics and elevated claims severity • 4Q’25 Net Loss attributable to Kemper Corporation of $(8.0) million or $(0.13) per share Financial • 4Q’2
Slide 7: 4Q'25 Sources of Volatility
4Q’25 Sources of Volatility Operating income primarily impacted by Florida statutory refunds 4Q’25 1• Primarily related to fair market value ($ in millions, except per share amounts) $ Per adjustment of tax credit equity investment Share – Remainder split between severance and Net Loss attributable
Slide 8: Well-Capitalized Insurance Subsidiaries
Well-Capitalized Insurance Subsidiaries Balance sheet continues to provide financial flexibility Parent Company Liquidity Risk-Based Capital Ratios¹ HoldCo Cash & Investments Returned Life2 Borrowings Available Under Credit $752 million P&C3 Agreement & from Subs of capital $1,433 $1,348 $1,336 (%)
Slide 9: Diversified Investment Portfolio with Consistent Returns
Diversified Investment Portfolio with Consistent Returns Net Investment Income1 Highlights • High-quality portfolio provides consistent ($ in millions) $103 $101 $105 $103 $96 net investment income; over 70% of fixed $4 $3 $4 $2 income portfolio rated A or higher • 4.7% pre-tax equivalent (PTE) annu
Slide 10: 2026 Reinsurance Program
2026 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 1/1/26 – $50 million excess $50 million $60M xs $100M 95% Placed – $60
Slide 11: Specialty Property & Casualty Insurance Segment
Specialty Property & Casualty Insurance Segment Competitive pressure, challenging liability dynamics, and FL statutory refunds impacted results Highlights Year-Over-Year Growth2 • FL Statutory Profit Limit Refunds of $35 million 4Q'25 TTM % of YoY – Excluding FL stat refunds, Underlying Combined DWP
Slide 12: Specialty Property & Casualty Insurance Segment
Specialty Property & Casualty Insurance Segment California steadily climbed to 70% of PPA DWP; focused on reducing to ~50% over long-term Highlights • Private Passenger written premium concentration in California has increased to ~70% – Increase driven by post-Covid hard market, which created a prof
Slide 13: Life Insurance Segment
Life Insurance Segment Delivering consistent return on capital and distributable cash flow Highlights • Earned premiums remain stable; face value of in-force relatively flat to prior year • Mortality and lapse performance in-line with historical experience • Annual actuarial assumption update favora
Slide 14: Quarter At a Glance
Quarter At a Glance 1 Results underperformed expectations driven by continued bodily injury severity and several infrequent items 2 Filed for rate and implemented non-rate actions to restore profitability 3 Implementing efficiency initiatives to reduce costs, optimizing organizational structure, and
Slide 15: Appendix
Appendix Earnings Call Presentation – 4Q 2025 15
Slide 16: 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 (Loss) Income attributable to Kemper Corporation the after-tax impact of: (i) Change in Fair Value of Equity and Convertible Securities; (ii) Net R
Slide 17: 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 (Loss) Income attributable to Kemper Corporation by the average shareholders’ equity excluding net unrealized gains an
Slide 18: Non-GAAP Financial Measures
Non-GAAP Financial Measures Adjusted Consolidated Net Operating Income attributable to Kemper Corporation Three Months Ended Year Ended ($ in millions) Dec 31, 2025 Dec 31, 2024 Dec 31, 2025 Dec 31, 2024 Net (Loss) Income attributable to Kemper Corporation $(8.0) $97.4 $143.3 $317.8 Less Net (Los
Slide 19: Non-GAAP Financial Measures
Non-GAAP Financial Measures Return on Adjusted Shareholders’ Equity Three Months Ended Year Ended ($ in millions) Dec 31, 2025 Dec 31, 2024 Dec 31, 2025 Dec 31, 2024 Annualized Net (Loss) Income attributable to Kemper $(32.0) $389.6 $143.3 $317.8 Corporation Average Shareholders’ Equity1 $2,706.8
Slide 20: Non-GAAP Financial Measures
Non-GAAP Financial Measures Adjusted Book Value Per Share As of ($ and shares in millions except per share amounts) Dec 31, 2025 Dec 31, 2024 Kemper Corporation Shareholders’ Equity $2,681.4 $2,788.4 Less: Net Unrealized Losses on Fixed Maturities 566.2 696.5 Less: Change in Discount Rate on Futur
Slide 21: Non-GAAP Financial Measures
Non-GAAP Financial Measures Underlying Combined Ratio Three Months Ended 4Q’25 3Q’25 2Q’25 1Q’25 4Q’24 Specialty P&C Insurance Combined Ratio as Reported 106.0% 104.8% 95.4% 92.7% 92.1% Current Year Catastrophe Losses and LAE Ratio (0.1) (0.1) (0.5) (0.4) (0.2) Prior Years Non-Catastrophe Losses and