Kemper Corporation · NYSE:KMPR
Kemper — Q3 2025 Earnings Presentation
19 slides from Kemper's earnings presentation, Nov 5, 2025
Slide 1: Third Quarter 2025 Earnings
Third Quarter 2025 Earnings November 5, 2025 Earnings Call Presentation – 3Q 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: Key Themes of the Quarter
Key Themes of the Quarter Results did not meet expectations; actions underway to improve profitability and growth Navigating a dynamic and evolving market Strong balance sheet with financial flexibility Sharpened focus on disciplined execution, operational excellence, and efficiency Realigning the o
Slide 5: Third Quarter 2025 Summary
Third Quarter 2025 Summary Specialty P&C performance impacted by competitive and severity pressures Financial results below expectations driven by market competition and elevated claims severity • 3Q’25 Net Loss attributable to Kemper Corporation of $(21.0) million or $(0.34) per diluted share Share
Slide 6: 3Q'25 Sources of Volatility
3Q’25 Sources of Volatility Restructuring program positioned to enhance operational effectiveness 3Q’25 1• Restructuring program launched in 3Q’25 to ($ in millions, except per share amounts) Per Diluted enhance organizational efficiencies $ Share – Actions taken expected to generate ~$30 Net Loss
Slide 7: Well-Capitalized Insurance Subsidiaries
Well-Capitalized Insurance Subsidiaries Strong balance sheet with 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 (%) $1,148 ($ in millions) $1,045 $733 $938 $4
Slide 8: Diversified Investment Portfolio with Consistent Returns
Diversified Investment Portfolio with Consistent Returns Net Investment Income1 Highlights • High-quality portfolio provides consistent ($ in millions) $111 $103 $101 $105 $10 $96 net investment income; 71% of fixed income $4 $3 $4 portfolio rated A or higher • 4.6% pre-tax equivalent (PTE) annualiz
Slide 9: Specialty Property & Casualty Insurance Segment
Specialty Property & Casualty Insurance Segment Increased competition and bodily injury severity trends impacted results Highlights Year-Over-Year Growth2 • Underlying Combined Ratio1 of 99.6% 3Q'25 TTM % of YoY – Private Passenger Auto: 102.1% DWP DWP PIF Growth Private Passenger Auto – Commercial
Slide 10: Life Insurance Segment
Life Insurance Segment Stable performance and trends Highlights • Earned premiums and face value of in-force relatively flat to prior year • Favorable mortality and disciplined expense management improved results Normalized Revenues2 ($ in millions) Metrics $151 $146 $148 $145 $148 ($ in millions, e
Slide 11: Key Themes of the Quarter
Key Themes of the Quarter Results did not meet expectations; actions underway to improve profitability and growth Navigating a dynamic and evolving market Strong balance sheet with financial flexibility Sharpened focus on disciplined execution, operational excellence, and efficiency Realigning the o
Slide 12: Appendix
Appendix Earnings Call Presentation – 3Q 2025 12
Slide 13: 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 – $65
Slide 14: Non-GAAP Financial Measures
Non-GAAP Financial Measures Adjusted Consolidated Net Operating Income is an after-tax, non-GAAP financial measure and is computed by excluding from Net (Loss) Income attributable to Kemper Corporation the after-tax impact of: (i) Change in Fair Value of Equity and Convertible Securities; (ii) Net R
Slide 15: Non-GAAP Financial Measures
Non-GAAP Financial Measures Return on Adjusted Shareholders’ Equity is a calculation that uses a non-GAAP financial measure. It is calculated by dividing the period’s annualized Net (Loss) Income attributable to Kemper Corporation by the average shareholders’ equity excluding net unrealized gains an
Slide 16: Non-GAAP Financial Measures
Non-GAAP Financial Measures Adjusted Consolidated Net Operating Income attributable to Kemper Corporation Three Months Ended ($ in millions) Sep 30, 2025 Sep 30, 2024 Net (Loss) Income attributable to Kemper Corporation $(21.0) $73.7 Less Net (Loss) Income From: Change in Fair Value of Equity and C
Slide 17: Non-GAAP Financial Measures
Non-GAAP Financial Measures Return on Adjusted Shareholders’ Equity Three Months Ended ($ in millions) Sep 30, 2025 Sep 30, 2024 Annualized Net (Loss) Income attributable to Kemper Corporation $(84.0) $294.8 Average Shareholders’ Equity1 $2,842.8 $2,722.3 Less: Average Net Unrealized Losses on Fixe
Slide 18: Non-GAAP Financial Measures
Non-GAAP Financial Measures Adjusted Book Value Per Share As of ($ and shares in millions except per share amounts) Sep 30, 2025 Sep 30, 2024 Kemper Corporation Shareholders’ Equity $2,732.1 $2,773.3 Less: Net Unrealized Losses on Fixed Maturities 553.4 455.8 Less: Change in Discount Rate on Futur
Slide 19: Non-GAAP Financial Measures
Non-GAAP Financial Measures Underlying Combined Ratio Three Months Ended 3Q’25 2Q’25 1Q’25 4Q’24 3Q’24 Specialty P&C Insurance Combined Ratio as Reported 104.8% 95.4% 92.7% 92.1% 91.7% Current Year Catastrophe Losses and LAE Ratio (0.1) (0.5) (0.4) (0.2) (0.4) Prior Years Non-Catastrophe Losses and