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, 2021 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 Corporation (NYSE:KMPR) Q4 2021 Earnings Conference Call January 31, 2022 5:00 PM ET Company Participants Karen Guerra - Vice President, Investor Relations Joe Lacher - President, Chief Executive Officer and Chairman Jim McKinney - Executive Vice President and Chief Financial Officer Duane Sanders - Executive Vice President and President, Property & Casualty Division Conference Call Participants Greg Peters - Raymond James Paul Newsome - Piper Sandler Gary Ransom - Dowling & Partners Brian Meredith - ...

Third Quarter 2021 Earnings October 28, 2021 KEMPER Earnings Call Presentation – 3Q 2021 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 Act of 1995. Forward-looking statements give expectations or forecasts of future events and can be identified by the fact th ...

Financial Data and Key Metrics Changes - The company reported a net loss of $75 million or $1.18 per share as reported, and an adjusted loss of $69 million or $1.08 per share [21] - Adjusted consolidated net operating loss was $76 million, with an adjusted net loss of $69 million [27] - Return on tangible equity, excluding unrealized gains, was 3%, below the target return [22][32] Business Line Data and Key Metrics Changes - The Property and Casualty (P&C) segments faced environmental headwinds, with a focus on restoring profitability [23] - The Life and Health segment saw higher demand for products and strong policy retention, despite a spike in COVID-related mortality due to the Delta variant [23][49] Market Data and Key Metrics Changes - Auto claim activity increased by 18% to 20%, while severity rose by 8% to 10% due to supply chain challenges and labor shortages [36] - The specialty P&C segment reported an underlying combined ratio increase of 22 points year-over-year, with an underwriting loss of approximately $80 million [42] Company Strategy and Development Direction - The company is prioritizing profit restoration over growth in response to current environmental challenges [44] - Rate increases are being filed to address the imbalance between loss costs and earned rates, with a focus on restoring equilibrium in the system [45][70] Management's Comments on Operating Environment and Future Outlook - Management acknowledged that the pandemic's impact continues to affect results, with expectations of prolonged inflationary pressures [13][19] - The company anticipates a return to normalized mortality rates as the pandemic transitions to an endemic phase [20] Other Important Information - The company generated over $500 million in cash flow over the past twelve months, maintaining a strong balance sheet and liquidity [32] - The debt to capital ratio was reported at 21.3%, within the target range [32] Q&A Session Summary Question: How are labor shortages and materials affecting severity? - Management explained that labor shortages and supply chain issues lead to increased repair times and costs, contributing to overall severity increases [56][60] Question: What is the regulatory environment like regarding rate increases? - Management indicated that regulators are assessing historical results and current loss trends, with expectations for rate increases to be filed in various states [64][70] Question: Can you break down the loss trend in specialty auto? - Management noted that frequency is roughly within 1% of pre-pandemic levels, while severity has seen double-digit inflationary trends [88][90] Question: Is the company still comfortable growing the business amid loss cost challenges? - Management clarified that growth initiatives are being slowed due to the uncertainty of inflation duration, not due to long-term concerns about profitability [92][96] Question: What is the status of the Florida PIP charge? - Management expressed increased comfort with the current situation, noting proactive measures to mitigate future litigation risks [100][110]

PART I. FINANCIAL INFORMATION [Financial Statements](index=6&type=section&id=Item%201.%20Financial%20Statements) Kemper Corporation presents its unaudited condensed consolidated financial statements and notes for the periods ending September 30, 2021, and 2020 [Condensed Consolidated Statements of Income](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) The company shifted from net income to a net loss in Q3 and the first nine months of 2021, driven by increased policyholder benefits and incurred losses Key Income Statement Data (in millions, except per share) | Metric | Q3 2021 | Q3 2020 | Nine Months 2021 | Nine Months 2020 | | :--- | :--- | :--- | :--- | :--- | | **Total Revenues** | $1,455.4 | $1,353.7 | $4,315.1 | $3,813.6 | | **Total Expenses** | $1,585.2 | $1,201.6 | $4,413.0 | $3,424.1 | | **Income (Loss) before Income Taxes** | $(129.8) | $152.1 | $(97.9) | $389.5 | | **Net Income (Loss)** | **$(75.3)** | **$122.3** | **$(14.7)** | **$312.4** | | **Diluted EPS** | **$(1.18)** | **$1.83** | **$(0.23)** | **$4.67** | [Condensed Consolidated Balance Sheets](index=8&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets increased to $14.98 billion, but growing liabilities reduced shareholders' equity to $4.15 billion Balance Sheet Summary (in millions) | Metric | Sep 30, 2021 | Dec 31, 2020 | | :--- | :--- | :--- | | **Total Investments** | $10,422.3 | $10,424.1 | | **Goodwill** | $1,312.0 | $1,114.0 | | **Total Assets** | **$14,977.2** | **$14,341.9** | | **Total Insurance Reserves** | $6,120.3 | $5,510.0 | | **Total Liabilities** | **$10,826.0** | **$9,778.5** | | **Total Shareholders' Equity** | **$4,151.2** | **$4,563.4** | [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Operating cash flow increased to $307.6 million, while investing and financing activities resulted in net cash outflows Cash Flow Summary for Nine Months Ended Sep 30 (in millions) | Activity | 2021 | 2020 | | :--- | :--- | :--- | | **Net Cash Provided by Operating Activities** | $307.6 | $251.3 | | **Net Cash Provided by (Used in) Investing Activities** | $(99.0) | $(469.3) | | **Net Cash (Used in) Provided by Financing Activities** | $(294.9) | $433.4 | | **Increase (Decrease) in Cash** | $(86.3) | $215.4 | [Note 3 - Acquisition of Business](index=16&type=section&id=Note%203%20-%20Acquisition%20of%20Business) Kemper acquired AAC for $370.9 million, recognizing $198.0 million in goodwill from expected synergies - Kemper acquired American Access Casualty Company (AAC) on April 1, 2021, for a total cash consideration of approximately **$370.9 million**[52](index=52&type=chunk) - The acquisition contributed **$198.0 million** to Goodwill, reflecting expected synergies from economies of scale and cost savings opportunities[55](index=55&type=chunk) [Note 5 - Property and Casualty Insurance Reserves](index=21&type=section&id=Note%205%20-%20Property%20and%20Casualty%20Insurance%20Reserves) Adverse development increased property and casualty insurance reserves by $107.9 million, mainly in specialty personal automobile insurance - For the nine months ended September 30, 2021, the company increased its property and casualty insurance reserves by **$107.9 million** due to adverse development from prior accident years[66](index=66&type=chunk) - The adverse development was primarily driven by specialty personal automobile insurance (**$97.0 million**) and commercial automobile insurance (**$8.3 million**), both due to worse-than-expected loss patterns in liability coverage[66](index=66&type=chunk) [Management's Discussion and Analysis (MD&A)](index=43&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q3 2021 net loss due to lower operating income, detailing segment performance, investment results, liquidity, and capital resources Reconciliation of Net Income (Loss) to Adjusted Consolidated Net Operating Income (Loss) (in millions) | Metric | Q3 2021 | Q3 2020 | Nine Months 2021 | Nine Months 2020 | | :--- | :--- | :--- | :--- | :--- | | **Net Income (Loss)** | $(75.3) | $122.3 | $(14.7) | $312.4 | | **Adjusted Consolidated Net Operating Income (Loss)** | **$(75.8)** | **$90.9** | **$(88.0)** | **$333.0** | - The decrease in Net Income for the nine months of 2021 was primarily due to a **$421.0 million** decrease in Adjusted Consolidated Net Operating Income, driven by lower performance in the Specialty P&C and Life & Health segments[176](index=176&type=chunk) [Specialty Property & Casualty Insurance](index=47&type=section&id=Specialty%20Property%20%26%20Casualty%20Insurance) The Specialty P&C segment reported a net operating loss of $(70.9) million, driven by increased loss ratios and adverse reserve development despite premium growth Specialty P&C Performance (Nine Months Ended Sep 30) | Metric | 2021 | 2020 | | :--- | :--- | :--- | | **Segment Net Operating Income (Loss)** | $(70.9)M | $246.8M | | **Earned Premiums** | $2,916.2M | $2,452.9M | | **Combined Ratio** | 107.6% | 90.6% | | **Underlying Combined Ratio** | 103.5% | 89.6% | - The underlying loss ratio deteriorated by **13.7 points** to **84.0%** for the nine-month period, attributed to higher claim frequency and severity trends[202](index=202&type=chunk) - Adverse prior-year reserve development was **$105.3 million** in the first nine months of 2021, compared to **$16.9 million** in 2020, largely driven by increased severity in personal injury protection in Florida[202](index=202&type=chunk) [Preferred Property & Casualty Insurance](index=52&type=section&id=Preferred%20Property%20%26%20Casualty%20Insurance) The Preferred P&C segment narrowed its net operating loss to $(5.1) million due to lower catastrophe losses, despite a deteriorated underlying combined ratio Preferred P&C Performance (Nine Months Ended Sep 30) | Metric | 2021 | 2020 | | :--- | :--- | :--- | | **Segment Net Operating Income (Loss)** | $(5.1)M | $(13.4)M | | **Earned Premiums** | $489.1M | $519.0M | | **Combined Ratio** | 113.6% | 108.2% | | **Underlying Combined Ratio** | 98.7% | 89.3% | - Catastrophe losses decreased to **$71.6 million** from **$87.3 million** year-over-year for the nine-month period, contributing to the reduced net operating loss[230](index=230&type=chunk) [Life & Health Insurance](index=58&type=section&id=Life%20%26%20Health%20Insurance) The Life & Health segment's net operating income decreased to $23.1 million, primarily due to increased policyholder benefits from higher mortality and claims frequency Life & Health Performance (Nine Months Ended Sep 30) | Metric | 2021 | 2020 | | :--- | :--- | :--- | | **Segment Net Operating Income (Loss)** | $23.1M | $50.6M | | **Earned Premiums** | $489.3M | $486.3M | | **Policyholders' Benefits and Incurred Losses** | $353.5M | $320.2M | | **Insurance Expenses** | $269.4M | $251.1M | - The increase in policyholder benefits was attributed to higher mortality in life insurance due to COVID-19, higher policy persistency, and higher accident and health claims[257](index=257&type=chunk) [Investment Results](index=63&type=section&id=Investment%20Results) Net investment income increased to $318.9 million from alternative investments, but total comprehensive investment gains turned into a loss of $(128.2) million Net Investment Income (in millions) | Period | 2021 | 2020 | | :--- | :--- | :--- | | **Nine Months Ended Sep 30** | $318.9 | $245.5 | | **Three Months Ended Sep 30** | $101.9 | $92.1 | - The increase in net investment income was driven by higher valuations and distributions from Alternative Investments, which contributed **$80.2 million** in income for the nine months of 2021, compared to **$4.6 million** in 2020[285](index=285&type=chunk) - The fixed maturity portfolio was **94.9% investment-grade** as of September 30, 2021[292](index=292&type=chunk) [Liquidity and Capital Resources](index=70&type=section&id=Liquidity%20and%20Capital%20Resources) Kemper held $330.6 million in cash and investments, maintained a $400.0 million credit facility, and repurchased $161.7 million of common stock - Kemper (parent company) held cash and investments of **$330.6 million** at September 30, 2021, down from **$733.2 million** at year-end 2020[328](index=328&type=chunk) - Total long-term debt outstanding was **$1.12 billion** as of September 30, 2021. The company repaid a **$50.0 million** term loan in March 2021[315](index=315&type=chunk)[316](index=316&type=chunk) - The company repurchased **$161.7 million** of common stock in the first nine months of 2021. As of September 30, 2021, **$171.6 million** remained under the share repurchase authorization[323](index=323&type=chunk)[324](index=324&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=69&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) There have been no material changes to the company's market risk disclosures from its 2020 Annual Report - There have been no material changes to the Company's disclosures about market risk from the 2020 Annual Report[338](index=338&type=chunk) [Controls and Procedures](index=69&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective, with no material changes to internal control over financial reporting - The CEO and CFO concluded that the company's disclosure controls and procedures are effective[339](index=339&type=chunk) - No material changes to internal control over financial reporting occurred during the fiscal quarter[340](index=340&type=chunk) PART II. OTHER INFORMATION [Legal Proceedings](index=70&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in legal proceedings, including regulatory initiatives requiring proactive death verification for life insurers, with uncertain ultimate outcomes - The company is subject to initiatives requiring life insurers to proactively use death verification databases to identify deceased insureds, which could alter the terms of existing contracts[166](index=166&type=chunk) - Kemper voluntarily began implementing a comprehensive death verification process in 2016. The ultimate financial impact of these industry-wide initiatives remains uncertain[167](index=167&type=chunk)[168](index=168&type=chunk) [Risk Factors](index=70&type=page&id=Item%201A.%20Risk%20Factors) The company refers readers to its 2020 Annual Report on Form 10-K for significant risk factors and other SEC filing disclosures - For a discussion of significant risk factors, the report refers to Item 1A of the 2020 Annual Report on Form 10-K[343](index=343&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=70&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) Kemper repurchased approximately 40,000 shares for $3.0 million in Q3 2021, with $171.6 million remaining under authorization Share Repurchases (Q3 2021) | Period | Total Number of Shares Purchased | Average Price Paid per Share | Maximum Dollar Value that May Yet Be Purchased (in millions) | | :--- | :--- | :--- | :--- | | July 2021 | 40,123 | $74.79 | $171.6 | | August 2021 | — | — | $171.6 | | September 2021 | — | — | $171.6 | [Exhibits](index=71&type=section&id=Item%206.%20Exhibits) This section indexes exhibits filed with the Form 10-Q, including certifications and XBRL data files

Financial Data and Key Metrics Changes - The company reported a net loss of $63 million or $0.97 per share as reported, and $53 million or $0.82 per share as adjusted [11] - Adjusted consolidated net operating loss was $99 million or $1.54 per diluted share as reported, and $89 million or $1.39 per share as adjusted [12] - Tangible book value per share, excluding unrealized gains, declined by 1% [12] - Return on tangible equity, excluding unrealized gains, was 11% [13] - Generated $422 million of cash from operations over the past year [13] Business Line Data and Key Metrics Changes - Specialty Property and Casualty segment generated an adjusted underwriting loss of $60 million with an underlying combined ratio of 106% [14] - Policies in force grew by 5.5% as adjusted, and direct written premium on a normalized basis grew by 13.2% [15] - Life and Health segment reported a segment income of $13 million driven by lower mortality levels and strong policy retention [36] Market Data and Key Metrics Changes - The reopening of the economy led to increased auto frequency and severity due to higher miles driven and supply chain issues [10] - The company experienced strong growth in demand for its Life products, with issuance levels above pre-pandemic levels and a historic high retention rate of 94% [36] Company Strategy and Development Direction - The company is focused on taking corrective actions to return to a more normalized underlying combined ratio within the next few quarters [14] - The acquisition of American Access is expected to enhance the specialty auto franchise value [13] - The company continues to repurchase shares and maintain financial flexibility while enhancing long-term intrinsic value [16] Management's Comments on Operating Environment and Future Outlook - Management noted that the speed of the reopening magnified the financial impact of environmental challenges [10] - The company expects inflationary pressures and supply chain challenges to persist for at least 12 to 18 months [55] - Management remains confident in the long-term profitability of the business despite current challenges [38] Other Important Information - The company highlighted its strong balance sheet and capital stewardship, with a debt-to-capital ratio of 20.7% [23] - Net investment income for the quarter was $114 million, reflecting strong core portfolio performance [25] - The company is actively monitoring and adjusting its operating model in response to legal changes and market conditions [30] Q&A Session Summary Question: Where was the deterioration in the Specialty Property Casualty segment most severe? - Management indicated that the issues were broad, with significant increases in frequency and severity due to supply chain challenges and social inflation [42] Question: How does the company view the impact of the Florida PIP court rulings? - Management stated that the rulings affect multiple policy years and will require adjustments in reserves, but they remain committed to serving the Florida market [30][82] Question: Why not slow down growth while assessing loss costs? - Management expressed confidence in their underwriting practices and the ability to adjust rates and respond to market conditions [80] Question: What is the expected timeline for normalizing the combined ratio? - Management anticipates a timeline of two to four quarters to return to a mid-90s combined ratio range [56] Question: Are there differences in trends between the Specialty and Preferred segments? - Management noted that while both segments face similar challenges, the Specialty segment is experiencing more pronounced issues due to specific market dynamics [74]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 ______________________________________________________ FORM 10-Q ______________________________________________________ ☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the Quarterly Period Ended 06/30/2021 OR ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the Transition Period from to Commission file number 001-18298 Kemper Corporation (Exact n ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 ______________________________________________________ FORM 10-Q ______________________________________________________ ☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the Quarterly Period Ended 03/31/2021 OR ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the Transition Period from to Commission file number 001-18298 Kemper Corporation (Exact n ...

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, 2020 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 ...

| --- | --- | --- | |------------------|-------|-------| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Fourth Quarter | | | | 2020 Earnings | | | | February 1, 2021 | | | | | | | | | | | | | | | Earnings Call Presentation – 4Q 2020 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 Privat ...