Core Viewpoint - Kemper (KMPR) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive trend in earnings estimates which is a significant factor influencing stock prices [1][2][10] Earnings Estimates and Stock Price Movement - The Zacks rating system is based on changes in earnings estimates, which are strongly correlated with near-term stock price movements [3][5] - Institutional investors utilize earnings estimates to determine the fair value of stocks, leading to price movements based on their buying or selling actions [3] Company Performance and Outlook - The upgrade for Kemper reflects an improvement in the company's underlying business, suggesting that investor sentiment may drive the stock price higher [4] - Analysts have raised their earnings estimates for Kemper, with a projected earnings per share of $4.50 for the fiscal year ending December 2024, representing a year-over-year increase of 708.1% [7] Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a strong historical performance, particularly for Zacks Rank 1 stocks which have averaged a +25% annual return since 1988 [6][8] - Only the top 20% of Zacks-covered stocks receive a 'Strong Buy' or 'Buy' rating, indicating superior earnings estimate revisions and potential for market-beating returns [8]

Momentum investing revolves around the idea of following a stock's recent trend in either direction. In the 'long' context, investors will be essentially be "buying high, but hoping to sell even higher." With this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving that way. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.Even though momentum is a popular stock char ...

Financial Performance - Book Value Per Share sequentially increased by $1.16 to $40.24[6] - Adjusted Consolidated Net Operating Income was $69.7 million, compared to $(55.7) million in the same quarter of the previous year[50] - Return on Tangible Shareholders' Equity was 17.2%, compared to (17.7)% in the same quarter of the previous year[55] Specialty P&C Insurance - Specialty P&C PIF Sequential Quarterly Change improved by 3.4 points, from (8.9)% to (5.5)%[9] - The underlying combined ratio improved 14.4 points year-over-year and 4.6 points sequentially to 93.6%[13, 102] - Earned premiums decreased by 11.0% year-over-year[89] - New business apps in 1Q'24 were approximately 2.6 times that of 4Q'23[103, 111, 115] Life Insurance - Face Value of In-Force decreased by 0.9% year-over-year[19] - Total Segment Adjusted Net Operating Income decreased by 7.7% to $12 million[24] Liquidity and Capital - Parent company liquidity was approximately $1.1 billion[87]

For the quarter ended March 2024, Kemper (KMPR) reported revenue of $1.13 billion, down 11.7% over the same period last year. EPS came in at $1.07, compared to -$1.02 in the year-ago quarter.The reported revenue represents a surprise of +3.41% over the Zacks Consensus Estimate of $1.09 billion. With the consensus EPS estimate being $1.09, the EPS surprise was -1.83%.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expecta ...

[Caution Regarding Forward-Looking Statements](index=3&type=section&id=Caution%20Regarding%20Forward-Looking%20Statements) [Forward-Looking Statements Disclosure](index=3&type=section&id=Forward-Looking%20Statements%20Disclosure) Forward-looking statements in this report are subject to risks and uncertainties that may cause actual results to differ materially - Forward-looking statements are identified by words such as "believe," "estimate," "anticipate," "forecast," "project," "plan," "intend," and "expect"[11](index=11&type=chunk) - Actual results may differ materially from forward-looking statements due to various factors, including but not limited to[12](index=12&type=chunk)[13](index=13&type=chunk) - **Legal and Regulatory Environment:** Changes in regulations, adverse litigation outcomes, and cybersecurity risks[14](index=14&type=chunk)[16](index=16&type=chunk) - **Insurance Claims and Reserves:** Catastrophe frequency/severity, inflation impact on claims, and changes in reinsurance[15](index=15&type=chunk)[19](index=19&type=chunk) - **Competitive and Business Environment:** Competition, success of strategic initiatives, technology risks, and general economic conditions[17](index=17&type=chunk)[18](index=18&type=chunk) [PART I. FINANCIAL INFORMATION](index=6&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Item 1. Financial Statements](index=6&type=section&id=Item%201.%20Financial%20Statements) Unaudited Q1 2024 consolidated financial statements show a significant turnaround to profitability, driven by improved underwriting results [Condensed Consolidated Statements of Income (Loss)](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income%20(Loss)) Q1 2024 net income reached **$71.3 million**, a significant improvement from a **$80.1 million net loss** in Q1 2023, primarily due to reduced expenses Q1 2024 vs. Q1 2023 Income Statement Highlights | Metric | Q1 2024 (in millions) | Q1 2023 (in millions) | | :--- | :--- | :--- | | Total Revenues | $1,143.0 | $1,294.8 | | Total Expenses | $1,056.4 | $1,398.7 | | Income (Loss) before Income Taxes | $86.6 | $(103.9) | | Net Income (Loss) attributable to Kemper | $71.3 | $(80.1) | | Diluted EPS | $1.10 | $(1.25) | [Condensed Consolidated Balance Sheets](index=8&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of March 31, 2024, total assets were **$12.63 billion**, with shareholders' equity increasing to **$2.59 billion** due to reduced liabilities Balance Sheet Summary | Metric | Mar 31, 2024 (in millions) | Dec 31, 2023 (in millions) | | :--- | :--- | :--- | | Total Investments | $8,764.6 | $8,904.2 | | Total Assets | $12,625.9 | $12,742.7 | | Total Insurance Reserves | $5,891.5 | $6,102.9 | | Total Liabilities | $10,037.2 | $10,237.7 | | Total Shareholders' Equity | $2,588.7 | $2,505.0 | [Condensed Consolidated Statements of Cash Flows](index=10&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash provided by operating activities significantly increased to **$43.0 million** in Q1 2024, with investing activities turning positive, leading to a **$62.6 million** cash increase Cash Flow Summary | Metric | Q1 2024 (in millions) | Q1 2023 (in millions) | | :--- | :--- | :--- | | Net Cash Provided by Operating Activities | $43.0 | $5.2 | | Net Cash Provided by (Used in) Investing Activities | $39.3 | $(138.2) | | Net Cash Used in Financing Activities | $(19.7) | $(18.8) | | Net increase (decrease) in cash | $62.6 | $(151.8) | [Notes to the Condensed Consolidated Financial Statements](index=13&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) Notes provide detailed financial information, highlighting improved Specialty P&C performance, reduced adverse reserve development, and details on investments and debt Segment Adjusted Operating Income (Loss) | Segment (in millions) | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Specialty Property & Casualty Insurance | $86.5 | $(74.7) | | Life Insurance | $14.0 | $14.8 | - Property and Casualty Insurance Reserves saw adverse development of **$8.8 million** from prior accident years in Q1 2024, a significant improvement from the **$41.9 million** adverse development in Q1 2023[61](index=61&type=chunk)[62](index=62&type=chunk)[63](index=63&type=chunk) - The company's fixed maturity investment portfolio had a fair value of **$6.77 billion** against an amortized cost of **$7.56 billion** as of March 31, 2024, indicating a significant unrealized loss position[72](index=72&type=chunk) - Total long-term debt outstanding was **$1.39 billion** as of March 31, 2024, with **$449.7 million** of 4.350% Senior Notes due 2025 classified as current[155](index=155&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=44&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes Q1 2024 profitability to improved Specialty P&C underwriting, driven by rate increases and lower claim frequency Reconciliation of Net Income to Adjusted Consolidated Net Operating Income (Loss) | Metric (in millions) | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Net Income (Loss) attributable to Kemper | $71.3 | $(80.1) | | Adjusted Consolidated Net Operating Income (Loss) | $69.7 | $(55.7) | - The **$151.4 million** increase in Net Income was primarily due to higher Adjusted Consolidated Net Operating Income, improved results from Non-Core Operations, and lower restructuring costs[192](index=192&type=chunk) - Earned Premiums decreased by **$149.0 million**, mainly from a **$104.2 million** reduction in the Specialty P&C segment due to lower new business volumes from actions taken to improve profitability[197](index=197&type=chunk) [Specialty Property & Casualty Insurance Segment](index=47&type=section&id=Specialty%20Property%20%26%20Casualty%20Insurance%20Segment) The Specialty P&C segment achieved a significant turnaround to **$69.2 million** adjusted net operating income in Q1 2024, with the combined ratio improving to **94.8%** Specialty P&C Segment Key Ratios | Ratio | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Total Incurred Loss and LAE Ratio | 73.7% | 91.6% | | Insurance Expense Ratio | 21.1% | 20.5% | | Combined Ratio | 94.8% | 112.1% | | Underlying Combined Ratio | 93.6% | 108.0% | - The improvement in results was driven by higher average earned premiums per exposure (up **25.6% YoY**), lower underlying claims frequency, and moderating claims severity trends[207](index=207&type=chunk) - Adverse prior year reserve development was **$6.0 million**, a significant improvement from **$31.1 million** in the prior-year quarter[207](index=207&type=chunk) [Life Insurance Segment](index=52&type=section&id=Life%20Insurance%20Segment) The Life Insurance segment's adjusted net operating income decreased to **$11.9 million** in Q1 2024 from **$13.2 million** in Q1 2023 Life Insurance Segment Financials | Metric (in millions) | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Earned Premiums | $97.3 | $99.3 | | Net Investment Income | $44.3 | $49.8 | | Segment Adjusted Operating Income | $14.0 | $14.8 | | Total Segment Adjusted Net Operating Income | $11.9 | $13.2 | - Policyholders' Benefits and Incurred Losses and LAE decreased by **$6.9 million** due to changes in mortality experience in life insurance products[223](index=223&type=chunk) [Investment Results](index=53&type=section&id=Investment%20Results) Net investment income slightly decreased to **$100.4 million** in Q1 2024, with total comprehensive investment results reversing to a **$98.1 million loss** - The investment portfolio is primarily high-grade, with **95.8%** of fixed maturity investments rated as investment-grade (NAIC 1 or 2) as of March 31, 2024[234](index=234&type=chunk) Total Comprehensive Investment (Losses) Gains | Metric (in millions) | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Net Gains Recognized in Income | $8.6 | $10.2 | | Recognized in Other Comprehensive Income | $(106.7) | $179.8 | | Total Comprehensive Investment (Losses) Gains | $(98.1) | $190.0 | [Liquidity and Capital Resources](index=61&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains adequate liquidity with **$395.6 million** in parent company cash and investments, supported by an undrawn **$600 million** credit facility - The parent company held cash and investments totaling **$395.6 million** at March 31, 2024[266](index=266&type=chunk) - The company has a **$600 million** unsecured credit agreement maturing in March 2027, with **$424.0 million** available as of March 31, 2024 There were no outstanding borrowings[257](index=257&type=chunk) - As of March 31, 2024, the remaining share repurchase authorization was **$171.6 million** No shares were repurchased in Q1 2024[263](index=263&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=62&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) No material changes to the company's disclosures about market risk have occurred since the 2023 Annual Report on Form 10-K - No material changes to the Company's disclosures about market risk have occurred since the 2023 Annual Report[277](index=277&type=chunk) [Item 4. Controls and Procedures](index=62&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures are effective, with no material changes to internal control over financial reporting during the quarter - Management, including the CEO and CFO, concluded that the company's disclosure controls and procedures were effective as of March 31, 2024[278](index=278&type=chunk) - No changes in internal control over financial reporting occurred during the quarter that have materially affected, or are reasonably likely to materially affect, the company's internal controls[279](index=279&type=chunk) [PART II. OTHER INFORMATION](index=63&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Item 1. Legal Proceedings](index=65&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in various legal proceedings in the ordinary course of business, with no expected material effect on consolidated financial statements - Information regarding legal proceedings is incorporated by reference from Note 18 to the financial statements[281](index=281&type=chunk) [Item 1A. Risk Factors](index=65&type=section&id=Item%201A.%20Risk%20Factors) There have been no material changes to the significant risk factors previously disclosed in the company's 2023 Annual Report on Form 10-K - The company refers readers to the risk factors section of its 2023 Annual Report for a discussion of significant risks[282](index=282&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=65&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) Kemper did not repurchase any common stock during Q1 2024, with **$171.6 million** remaining available under its share repurchase authorization - No shares were repurchased during the quarter ended March 31, 2024[283](index=283&type=chunk) - The remaining share repurchase authorization was **$171.6 million** as of March 31, 2024[283](index=283&type=chunk) [Item 6. Exhibits](index=66&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed as part of the Form 10-Q, including CEO and CFO certifications and XBRL data files

Investor Supplement First Quarter 2024 Caution Regarding Forward-Looking Statements This Investor Supplement 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 Act of 1995. We caution investors that these forward-looking statements are not guarantees of future performance, and actual results may differ materially. Such statements involve known and unknown ris ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission file number: 001-18298 Kemper Corporation (Exact name of registrant as specified in its charter) (State or other jurisdiction of DE 95-4255452 (I.R.S. Employer Identification No.) 200 E. Randolp ...

KEMPER Earnings Call Presentation – 4Q 2023 Cautionary Statements Regarding Forward-Looking Information • changes in the frequency and severity of insurance claims; • claim development and the process of estimating claim reserves; • the impacts of inflation; • changes in interest rate environment; • supply chain disruption; • product demand and pricing; • effects of governmental and regulatory actions; • litigation outcomes and trends; • investment risks; • cybersecurity risks; • impact of catastrophes; and ...

Financial Data and Key Metrics Changes - The company reported a net loss of $2.28 per diluted share for the quarter, with an adjusted consolidated net operating loss of $0.44. This included a non-cash charge of $56 million related to pension obligations and adverse development in specialty auto of $78 million [6][9][10] - Net investment income for the quarter was $107 million, with a pretax equivalent annualized book yield of 4.6% [10] Business Line Data and Key Metrics Changes - The Specialty P&C business saw an underlying combined ratio improvement of 1.5 points sequentially and 6.3 points year-over-year, attributed to earned rate increases and underwriting actions [12][16] - The Life business generated net operating income of $15 million for the third quarter, showing improved profitability compared to the prior year [17] Market Data and Key Metrics Changes - The company noted that the California personal auto rate increase of 30 points, effective in August, had a marginal earned impact in the third quarter but is expected to significantly increase in the following quarters [16][18] - The company is observing hard market conditions, particularly in California, which is contributing to favorable premium retention [12] Company Strategy and Development Direction - The company is focused on returning to profitability and maximizing long-term shareholder value, reaffirming its 2024 financial guidance of achieving a return on equity (ROE) of 10% or greater [5][18] - Strategic initiatives are on track to be completed on time, with expected financial and operational benefits, including the Bermuda project which is anticipated to provide $250 million in life dividends to the parent in the fourth quarter [8][9][80] Management's Comments on Operating Environment and Future Outlook - Management described the current environment as the most dynamic and volatile in the personal auto insurance industry, with expectations that this will persist for at least another year or two [5][18] - The company remains optimistic about future prospects, with confidence in achieving target profitability in 2024 [18][81] Other Important Information - The company is in the process of winding down its preferred P&C business, which is expected to release approximately $175 million of capital by the end of 2024 [80] - The reciprocal exchange has received necessary approvals and began writing business during the quarter, with plans to reinsure select new business from Kemper legal entities [78][80] Q&A Session Summary Question: Decline in policy count in specialty book - Management indicated that the decline is largely driven by a reduction in new business policies, while retention rates remain stable or slightly improved [20][21] Question: Concerns about parent company liquidity - Management acknowledged a decrease in parent company liquidity from $1.3 billion to $821 million, but expects to bolster liquidity by at least $250 million in the fourth quarter from Bermuda Optimization [31][33] Question: Adverse reserve development in personal auto business - Management expressed confidence in current reserves, noting that adverse development was primarily related to claims from the second half of 2022 and that they are closely monitoring trends [35][44] Question: Impact of capital situation on reciprocal - Management clarified that reinsuring business into the reciprocal would provide capital relief for the parent company, allowing for flexibility in capital management [47][52] Question: Target profitability and ROE expectations - Management reiterated the target of achieving a 10% ROE in 2024, emphasizing that combined ratios are expected to improve as new business is selectively written [54][70]

Catastrophe Aggregate Program: Non-GAAP Financial Measures Earnings Call Presentation – 3Q 2023 The Company believes that Adjusted Consolidated Net Operating Loss provides investors with a valuable measure of its ongoing performance because it reveals underlying operational performance trends that otherwise might be less apparent if the items were not excluded. Income (Loss) from Change in Fair Value of Equity and Convertible Securities, Net Realized Investment (Losses) Gains and Impairment (Losses) Gains r ...