Slide 1: Third Quarter 2024 Earnings
Third Quarter 2024 Earnings October 30, 2024 Earnings Call Presentation – 3Q 2024
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 Enabled by a dynamic, diverse and innovative team who act like owners Delivering appropriate and affordable insurance and financial solutions Specialty auto insurance1 for Life insurance2 for underserved markets; Latino, low/moderate incom
Slide 4: Third Quarter 2024 Summary
Third Quarter 2024 Summary Strong profitable growth continues Achieved Return on Equity within target range • ROE of 10.8% and Adjusted ROE1 of 16.7% Shareholder • Net Income attributable to Kemper Corporation of $73.7 million or $1.14 per diluted share Value • Adjusted Consolidated Net Operating In
Slide 5: Third Quarter 2024 Financial Summary
Third Quarter 2024 Financial Summary Produced another quarter of strong financial results Quarter Ended ($ in millions, except per share amounts) Sep 30, 2024 Sep 30, 2023 Net Income (Loss) Per Diluted Share attributable to Kemper Corporation $1.14 $(2.28) Adj. Consolidated Net Operating Income (Los
Slide 6: Well-Capitalized Insurance Subsidiaries
Well-Capitalized Insurance Subsidiaries Continued to strengthen balance sheet and enhance financial flexibility Parent Company Liquidity Risk-Based Capital Ratios¹ HoldCo Cash & Investments Life2 Borrowings Available P&C (ex. AACC) Under Credit Agreement & from Subs $1,433 $1,336 (%) $1,270 $1,148 (
Slide 7: Diversified Investment Portfolio with Consistent Returns
Diversified Investment Portfolio with Consistent Returns Net Investment Income1 Highlights • High-quality portfolio provides consistent ($ in millions) $107 $111 $105 $93 $100 $10 net investment income; 72% of fixed income $10 $7 $1 portfolio rated A or higher • 4.6% pre-tax equivalent (PTE) annuali
Slide 8: Specialty Property & Casualty Insurance Segment
Specialty Property & Casualty Insurance Segment Delivered strong margins and sequential quarter PIF growth Highlights Sequential Quarter Growth3 • Underlying Combined Ratio of 91.3% 3Q'24 TTM % of QoQ – Private Passenger Auto: 91.2% DWP DWP PIF Growth – Commercial Auto: 91.8% Private Passenger Auto
Slide 9: Life Insurance Segment
Life Insurance Segment Business trends remained stable; investment performance drove sequential earnings improvement Highlights • Macroeconomic trends continued to pressure low-to-moderate income consumers – Premiums relatively flat to prior-year; lapse performance remained stable • Mortality experi
Slide 10: Key Takeaways
Key Takeaways Specialty P&C • Delivered strong operating and financial results – Underlying Combined Ratio of 91.3% – PIF increased 4.5% from 2Q’24 • Expect continued profitable growth Life • Business fundamentals remain stable and continues to generate strong returns on capital Balance Sheet • Expe
Slide 11: Appendix
Appendix Earnings Call Presentation – 3Q 2024 11
Slide 12: 2024 Reinsurance Program
2024 Reinsurance Program Renewed Catastrophe XoL Reinsurance Catastrophe Reinsurance Program Highlights Catastrophe Excess of Loss Program (XOL): 5% co-participation 3-Year Term 1-Year Term Placed 1/1/22 Placed 1/1/24 • Program consists of two towers: Layer 2: – 3-year term placed in 2022: $100M xs
Slide 13: Non-GAAP Financial Measures
Non-GAAP Financial Measures Adjusted Consolidated Net Operating Income (Loss) is an after-tax, non-GAAP financial measure and is computed by excluding from Net Income (Loss) attributable to Kemper Corporation the after-tax impact of: (i) Change in Fair Value of Equity and Convertible Securities; (ii
Slide 14: Non-GAAP Financial Measures
Non-GAAP Financial Measures Return on Adjusted Shareholders’ Equity is a calculation that uses a non-GAAP financial measure. It is calculated by dividing the period’s net income attributable to Kemper Corporation by the average shareholders’ equity excluding net unrealized gains and losses on fixed
Slide 15: Non-GAAP Financial Measures
Non-GAAP Financial Measures Adjusted Consolidated Net Operating Income (Loss) attributable to Kemper Corporation Three Months Ended ($ in millions) Sep 30, 2024 Sep 30, 2023 Net Income (Loss) attributable to Kemper Corporation $73.7 $(146.3) Less Net (Loss) Income From: Change in Fair Value of Equ
Slide 16: Non-GAAP Financial Measures
Non-GAAP Financial Measures Return on Adjusted Shareholders’ Equity Three Months Ended ($ in millions) Sep 30, 2024 Sep 30, 2023 Annualized Net Income (Loss) attributable to Kemper Corporation $294.8 $(585.2) Average Shareholders’ Equity1 $2,722.3 $2,436.8 Less: Average Net Unrealized Gains and Lo
Slide 17: Non-GAAP Financial Measures
Non-GAAP Financial Measures Adjusted Book Value Per Share As of ($ and shares in millions except per share amounts) Sep 30, 2024 Sep 30, 2023 Kemper Corporation Shareholders’ Equity $2,773.3 $2,361.3 Less: Net Unrealized Gains and Losses on Fixed Maturities 455.8 900.1 Less: Change in Discount Rat
Slide 18: Non-GAAP Financial Measures
Non-GAAP Financial Measures Underlying Combined Ratio Three Months Ended 3Q’24 2Q’24 1Q’24 4Q'23 3Q'23 Specialty P&C Insurance Combined Ratio as Reported 91.7% 90.7% 94.8% 98.5% 109.9% Current Year Catastrophe Losses and LAE Ratio (0.4) (1.2) (0.5) (0.3) (0.7) Prior Years Non-Catastrophe Losses and