Slide 1: First Quarter 2025 Earnings
First Quarter 2025 Earnings May 7, 2025 Earnings Call Presentation – 1Q 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 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
Slide 4: First Quarter 2025 Summary
First Quarter 2025 Summary Strong profitable growth continues Double-digit Return on Equity and BVPS accretion • 1Q’25 Net Income attributable to Kemper Corporation of $99.7 million or $1.54 per diluted share Shareholder • 1Q’25 Adjusted Consolidated Net Operating Income1 of $106.4 million or $1.65
Slide 5: First Quarter 2025 Financial Summary
First Quarter 2025 Financial Summary Delivered another quarter of strong financial results Quarter Ended ($ in millions, except per share amounts) Mar 31, 2025 Mar 31, 2024 Net Income Per Diluted Share attributable to Kemper Corporation $1.54 $1.10 Adj. Consolidated Net Operating Income – Per Dilute
Slide 6: Well-Capitalized Insurance Subsidiaries
Well-Capitalized Insurance Subsidiaries Balance sheet continued to strengthen, enhancing financial flexibility Parent Company Liquidity Risk-Based Capital Ratios¹ HoldCo Cash & Investments Life2 Borrowings Available Under Credit P&C (ex. AACC) Agreement & from Subs $1,433 $1,348 $1,336 (%) $1,148 ($
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) $111 $100 $93 $103 $101 net investment income; 71% of fixed income $10 $4 $1 $3 portfolio rated A or higher • 4.4% pre-tax equivalent (PTE) annualiz
Slide 8: Specialty Property & Casualty Insurance Segment
Specialty Property & Casualty Insurance Segment Delivered strong margins and PIF growth Highlights Year-Over-Year Growth2 • Underlying Combined Ratio of 92.2% 1Q'25 TTM % of YoY – Private Passenger Auto: 92.2% DWP DWP PIF Growth – Commercial Auto: 92.3% Private Passenger Auto California $2,018 51.8%
Slide 9: Life Insurance Segment
Life Insurance Segment Business trends remained stable Highlights • Inflation continues to disproportionately pressure low-to-moderate income consumers – Premiums relatively flat to prior year – Lapse performance in-line with historical trends • Mortality in-line to historical experience1 Normalized
Slide 10: Key Takeaways
Key Takeaways Delivered strong operating results • Specialty Auto grew Written Premium 24%, Earned Premium and PIF ~14% with a 92.2% UCR1 • 14% ROE and 21% Adjusted ROE1 • BVPS and Adjusted BVPS1 increased 13% and 16% YoY, respectively Business strengths and current starting position provides confid
Slide 11: Appendix
Appendix Earnings Call Presentation – 1Q 2025 11
Slide 12: 2025 Reinsurance Program
2025 Reinsurance Program Renewed 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 $110M 95% Place
Slide 13: Non-GAAP Financial Measures
Non-GAAP Financial Measures Adjusted Consolidated Net Operating Income is an after-tax, non-GAAP financial measure and is computed by excluding from Net Income attributable to Kemper Corporation the after-tax impact of: (i) Change in Fair Value of Equity and Convertible Securities; (ii) Net Realized
Slide 14: Non-GAAP Financial Measures
Non-GAAP Financial Measures Return on Adjusted Shareholders’ Equity is a calculation that uses a non-GAAP financial measure. It is calculated by dividing the period’s Net Income attributable to Kemper Corporation by the average shareholders’ equity excluding net unrealized gains and losses on fixed
Slide 15: Non-GAAP Financial Measures
Non-GAAP Financial Measures Adjusted Consolidated Net Operating Income attributable to Kemper Corporation Three Months Ended ($ in millions) Mar 31, 2025 Mar 31, 2024 Net Income attributable to Kemper Corporation $99.7 $71.3 Less Net Income (Loss) From: Change in Fair Value of Equity and Convertibl
Slide 16: Non-GAAP Financial Measures
Non-GAAP Financial Measures Return on Adjusted Shareholders’ Equity Three Months Ended ($ in millions) Mar 31, 2025 Mar 31, 2024 Annualized Net Income attributable to Kemper Corporation $398.8 $285.2 Average Shareholders’ Equity1 $2,853.0 $2,547.5 Less: Average Net Unrealized Losses on Fixed Matur
Slide 17: Non-GAAP Financial Measures
Non-GAAP Financial Measures Adjusted Book Value Per Share As of ($ and shares in millions except per share amounts) Mar 31, 2025 Mar 31, 2024 Kemper Corporation Shareholders’ Equity $2,917.6 $2,589.8 Less: Net Unrealized Losses on Fixed Maturities 638.6 618.4 Less: Change in Discount Rate on Futur
Slide 18: Non-GAAP Financial Measures
Non-GAAP Financial Measures Underlying Combined Ratio Three Months Ended 1Q’25 4Q’24 3Q’24 2Q’24 1Q’24 Specialty P&C Insurance Combined Ratio as Reported 92.7% 92.1% 91.7% 90.7% 94.8% Current Year Catastrophe Losses and LAE Ratio (0.4) (0.2) (0.4) (1.2) (0.5) Prior Years Non-Catastrophe Losses and L