{"success":true,"data":{"pressRelease":{"id":"23998","rtpr_id":"nBw7WGQCya","ticker":"KMPR","exchange":"NYSE","all_tickers":["KMPR"],"title":"Kemper Reports First Quarter 2026 Operating Results*","author":"Business Wire","published_at":"2026-05-06T20:05:00.639Z","article_body":"Kemper Reports First Quarter 2026 Operating Results*\n\nKemper Corporation (NYSE: KMPR) reported a net loss of $1.7 million, or\n$(0.03) per share, for the first quarter of 2026, compared to net income of\n$99.7 million, or $1.54 per diluted share, for the first quarter of 2025.\n\nAdjusted Consolidated Net Operating Income(1) was $12.5 million, or $0.21 per\nshare, for the first quarter of 2026, compared to Adjusted Consolidated Net\nOperating Income(1 )of $106.4 million, or $1.65 per diluted share, for the\nfirst quarter of 2025.\n\nSummary of quarterly performance:\n\n\n * Adjusted Consolidated Net Operating Income(1) of $12.5 million or $0.21 per\nshare\n\n * Specialty Personal Automobile’s operating results impacted by losses in\nCalifornia; taking rate and non-rate actions to improve profitability\n\n * Specialty Commercial Automobile grew PIF at 10% YoY while producing an\nUnderlying Combined Ratio(1) of 92.4%\n\n * Life business generated solid results driven by underwriting performance and\nmanagement actions\n\n * Restructuring initiatives well underway with $60 million run-rate savings\nidentified and $50 million already actioned\n\n“Our results this quarter reflect continued pressure in parts of the\nbusiness, particularly California personal auto, while other areas of the\nportfolio are performing well and contributing positively,” said C. Thomas\nEvans, Jr., Interim CEO. “This includes strong results in our commercial\nauto business and continued personal auto diversification into key markets\nlike Florida and Texas. We are taking decisive actions across underwriting,\nclaims, and expense to return the business to profitability and drive more\nconsistent performance over time.”\n *Unless otherwise specified, discussion of our first quarter 2026 results is \n focused on net income attributable to Kemper Corporation common shareholders, \n which does not include financial results from Kemper Reciprocal that are \n presented within the condensed consolidated financial results in this release. \n The results of Kemper Reciprocal are consolidated under US GAAP. \n (1 )Non-GAAP financial measure. All Non-GAAP financial measures are denoted \n with footnote 1 throughout this release. See “Use of Non-GAAP Financial \n Measures” for additional information. \n\n     Three Months Ended \n (Dollars in Millions, Except Per Share Amounts) (Unaudited)   Mar 31,   Mar 31, \n \n2026 \n2025 \n Net (Loss) Income   $ (1.7 )   $ 99.7   \n Adjusted Consolidated Net Operating Income(1)   $ 12.5     $ 106.4   \n           \n Impact of Catastrophe Losses and Related Loss Adjustment Expense (LAE) on Net   $ (3.0 )   $ (5.6 ) \n (Loss) Income \n           \n Diluted Net (Loss) Income Per Share From:         \n Net (Loss) Income   $ (0.03 )   $ 1.54   \n Adjusted Consolidated Net Operating Income(1)   $ 0.21     $ 1.65   \n           \n Impact of Catastrophe Losses and Related LAE on Net (Loss) Income Per Share   $ (0.05 )   $ (0.09 ) \n\n\nRevenues\n\nTotal revenues for the first quarter of 2026 decreased $85.8 million to\n$1,107.2 million compared to the first quarter of 2025. The decline was\nprimarily due to lower Specialty Personal Automobile volumes, a $28.0 million\nFlorida Statutory Profit Limit Refund in the Specialty Property & Casualty\nInsurance segment, and a $12.7 million reduction in earned premiums from\nNon-Core Operations given the run-off of the Preferred Insurance business.\n\nSegment Results\n\nUnless otherwise noted, (i) the segment results discussed below are presented\non an after-tax basis, (ii) prior-year development includes both catastrophe\nand non-catastrophe losses and LAE, (iii) catastrophe losses and LAE exclude\nthe impact of prior-year development, (iv) loss ratio includes loss and LAE,\nand (v) all comparisons are made to the prior year quarter unless otherwise\nstated.\n     Three Months Ended \n (Dollars in Millions) (Unaudited)   Mar 31,   Mar 31, \n \n2026 \n2025 \n Segment Adjusted Net Operating Income:         \n Specialty Property & Casualty Insurance   $ 0.1     $ 97.9   \n Life Insurance     18.0       17.2   \n Total Segment Adjusted Net Operating Income     18.1       115.1   \n Corporate and Other Adjusted Net Operating Loss     (8.3 )     (11.4 ) \n Less: Net Loss attributable to Noncontrolling Interest     (2.7 )     (2.7 ) \n Adjusted Consolidated Net Operating Income(1)     12.5       106.4   \n Net (Loss) Income From:         \n Change in Fair Value of Equity and Convertible Securities     (1.0 )     0.1   \n Net Realized Investment Gains     0.3       0.7   \n Impairment Losses     (1.3 )     0.2   \n Acquisition and Disposition Related Transaction, Integration, Restructuring     (5.0 )     (4.2 ) \n and Other Costs \n Debt Extinguishment, Pension Settlement and Other Charges     —       0.4   \n Non-Core Operations     (7.2 )     (3.9 ) \n Net (Loss) Income attributable to Kemper Corporation   $ (1.7 )   $ 99.7   \n\n\nThe Specialty Property and Casualty Insurance segment reported adjusted net\noperating income of $0.1 million in the first quarter of 2026, compared to\nadjusted net operating income of $97.9 million in the first quarter of 2025.\nThis decrease was due primarily to an increase in our Specialty Personal\nAutomobile Underlying loss and LAE ratio(1). Specialty Personal Automobile’s\nUnderlying loss and LAE ratio(1) was 87.7 percent, compared to 70.1 percent in\nthe first quarter of 2025. The increase was primarily driven by higher claim\nseverity and frequency in California, lower business volumes, as well as a\n$28.0 million Florida Statutory Profit Limit Refund, partially offset by\nhigher average earned premiums per exposure resulting from rate increases.\n\nThe Life Insurance segment reported adjusted net operating income of $18.0\nmillion for the first quarter of 2026, compared to adjusted net operating\nincome of $17.2 million in the first quarter of 2025. The improvement was\nprimarily driven by lower Insurance Expenses and higher Earned Premiums,\npartially offset by higher Policyholders’ Benefits from life insurance\nproducts.\n\nCapital\n\nTotal Kemper Corporation Shareholders’ Equity as of March 31, 2026 was\n$2,649.6 million, a decrease of $31.8 million, or 1 percent, since year-end\n2025 primarily driven by comprehensive losses and dividend payments. Kemper\nand its direct non-insurance subsidiaries ended the quarter with cash and\ninvestments of $80.2 million, and $600.0 million of available borrowing\ncapacity under the revolving credit agreement.\n\nOn February 4, 2026, Kemper announced that its Board of Directors declared a\nquarterly dividend of $0.32 per share, or $18.3 million. The dividend was paid\non March 3, 2026, to its shareholders of record as of February 17, 2026.\n\nKemper ended the quarter with a book value per share of $45.05, a decrease of\n1 percent from $45.71 at the end of 2025. Adjusted book value per share(1) was\n$27.79 at the end of the quarter, compared to $28.06 at the end of 2025.\n\nUnaudited Condensed Consolidated Statements of (Loss) Income for the three\nmonths ended March 31, 2026 and 2025 are presented below.\n     Three Months Ended \n (Dollars in Millions, Except Per Share Amounts)   Mar 31,   Mar 31, \n \n2026 \n2025 \n Revenues:         \n Earned Premiums(2)   $ 999.3     $ 1,087.9   \n Net Investment Income     107.1       101.2   \n Other Income     3.4       2.6   \n Change in Fair Value of Equity and Convertible Securities     (1.3 )     0.1   \n Net Realized Investment Gains     0.4       0.9   \n Impairment Losses     (1.7 )     0.3   \n Total Revenues     1,107.2       1,193.0   \n Expenses:         \n Policyholders’ Benefits and Incurred Losses and Loss Adjustment Expenses(3)     828.8       767.3   \n Insurance and Other Expenses     277.0       294.5   \n Interest Expense     9.3       11.4   \n Total Expenses     1,115.1       1,073.2   \n (Loss) Income before Income Taxes     (7.9 )     119.8   \n Income Tax (Benefit) Expense     (3.5 )     22.8   \n Net (Loss) Income     (4.4 )     97.0   \n Less: Net Loss attributable to Noncontrolling Interest     (2.7 )     (2.7 ) \n Net (Loss) Income attributable to Kemper Corporation   $ (1.7 )   $ 99.7   \n           \n Net (Loss) Income attributable to Kemper Corporation per Unrestricted Share:         \n Basic   $ (0.03 )   $ 1.56   \n Diluted   $ (0.03 )   $ 1.54   \n           \n Weighted-average Outstanding (Shares in Thousands):         \n Unrestricted Shares - Basic     58,742.8       63,886.7   \n Unrestricted Shares and Equivalent Shares - Diluted     58,742.8       64,652.8   \n           \n Dividends Paid to Shareholders per Share   $ 0.32     $ 0.32   \n           \n (2) Includes a remeasurement gain related to the deferred profit liability \n within the Life insurance business of $0.9 million and $0.2 million for the \n three months ended March 31, 2026 and 2025, respectively. \n (3) Includes a remeasurement gain of $0.4 million and a remeasurement loss of \n $0.2 million related to the liability for future policyholder benefits within \n the Life insurance business for the three months ended March 31, 2026 and \n 2025, respectively. \n\n\nUnaudited business segment revenues for the three months ended March 31, 2026\nand 2025 are presented below.\n     Three Months Ended \n (Dollars in Millions)   Mar 31,   Mar 31, \n \n2026 \n2025 \n REVENUES:         \n Specialty Property & Casualty Insurance:         \n Earned Premiums:         \n Personal Automobile   $ 647.0     $ 753.7 \n Commercial Automobile     238.2       208.5 \n Total Earned Premiums     885.2       962.2 \n Net Investment Income     55.3       50.5 \n Other Income     2.7       1.3 \n Total Specialty Property & Casualty Insurance Revenues     943.2       1,014.0 \n Life Insurance:         \n Earned Premiums:         \n Life     85.6       83.7 \n Accident & Health     5.3       5.5 \n Property     9.9       10.5 \n Total Earned Premiums     100.8       99.7 \n Net Investment Income     48.7       48.4 \n Other Income     0.3       0.7 \n Total Life Insurance Revenues     149.8       148.8 \n Total Segment Revenues     1,093.0       1,162.8 \n Change in Fair Value of Equity and Convertible Securities     (1.3 )     0.1 \n Non-Core Operations     15.4       27.9 \n Net Realized Investment Gains, Impairment Losses, and Other(2)     0.1       2.2 \n Total Revenues   $ 1,107.2     $ 1,193.0 \n           \n (2 )In the fourth quarter of 2025, the Company elected to change the \n presentation of Net Realized Investment Gains (Losses), Impairment Losses, and \n Other by combining them into a single line item. Prior-period amounts have \n been recast to conform to the current-period presentation. \n \n\n KEMPER CORPORATION AND SUBSIDIARIES \n CONDENSED CONSOLIDATED BALANCE SHEETS \n (Dollars in Millions) \n (Unaudited) \n   Mar 31,   Dec 31, \n \n2026 \n2025 \n Assets:       \n Investments:       \n Fixed Maturities at Fair Value $ 6,672.2   $ 6,743.3 \n Equity Securities at Fair Value   308.4     306.4 \n Equity Method Limited Liability Investments   176.1     176.0 \n Short-term Investments at Cost which Approximates Fair Value   296.6     313.5 \n Company-Owned Life Insurance   586.2     579.2 \n Loans to Policyholders   279.6     279.9 \n Other Investments   283.9     271.3 \n Total Investments   8,603.0     8,669.6 \n Cash   92.1     124.3 \n Receivables from Policyholders   997.1     965.2 \n Other Receivables   185.3     184.7 \n Deferred Policy Acquisition Costs   669.6     655.4 \n Goodwill   1,250.7     1,250.7 \n Current Income Tax Assets   40.2     40.7 \n Deferred Income Tax Assets   95.2     96.9 \n Other Assets   406.2     410.7 \n Assets of Consolidated Variable Interest Entity       \n Fixed Maturities at Fair Value   47.2     42.1 \n Short-term Investments at Cost which Approximates Fair Value   9.2     14.4 \n Cash   0.5     1.7 \n Receivables from Policyholders   7.7     10.4 \n Other Receivables   0.5     0.4 \n Deferred Policy Acquisition Costs   1.0     1.3 \n Deferred Income Tax Assets   5.0     4.2 \n Total Assets $ 12,410.5   $ 12,472.7 \n   \n\n KEMPER CORPORATION AND SUBSIDIARIES \n CONDENSED CONSOLIDATED BALANCE SHEETS (Continued) \n (Dollars in Millions) \n (Unaudited) \n   Mar 31,   Dec 31, \n \n2026 \n2025 \n         \n Liabilities and Shareholders’ Equity:       \n Insurance Reserves:       \n Life & Health $ 3,238.9     $ 3,287.5   \n Property & Casualty   2,999.5       2,910.8   \n Total Insurance Reserves   6,238.4       6,198.3   \n Unearned Premiums   1,274.1       1,233.1   \n Policyholder Obligations   568.2       608.0   \n Deferred Income Tax Liabilities   4.3       14.8   \n Accrued Expenses and Other Liabilities   702.4       762.6   \n Long-term Debt, Non-current, at Amortized Cost   944.0       943.5   \n Liabilities of Consolidated Variable Interest Entity       \n Insurance Reserves   31.8       29.4   \n Unearned Premiums   9.9       12.1   \n Accrued Expenses and Other Liabilities   2.3       1.5   \n Total Liabilities   9,775.4       9,803.3   \n Kemper Corporation Shareholders’ Equity:       \n Common Stock   5.9       5.9   \n Paid-in Capital   1,732.6       1,723.9   \n Retained Earnings   1,137.8       1,157.8   \n Accumulated Other Comprehensive Loss   (226.7 )     (206.2 ) \n Total Kemper Corporation Shareholders’ Equity   2,649.6       2,681.4   \n Noncontrolling Interest   (14.5 )     (12.0 ) \n Total Shareholders’ Equity   2,635.1       2,669.4   \n Total Liabilities and Shareholders’ Equity $ 12,410.5     $ 12,472.7   \n   \n\n\nUnaudited selected financial information for the Specialty Property &\nCasualty Insurance segment follows.\n     Three Months Ended \n (Dollars in Millions)   Mar 31,   Mar 31, \n \n2026 \n2025 \n           \n Results of Operations \n Net Premiums Written   $ 925.0     $ 1,068.8   \n           \n Earned Premiums   $ 885.2     $ 962.2   \n Net Investment Income     55.3       50.5   \n Other Income     2.7       1.3   \n Total Revenues     943.2       1,014.0   \n Incurred Losses and LAE related to:         \n Current Year:         \n Non-catastrophe Losses and LAE     742.8       682.3   \n Catastrophe Losses and LAE     1.3       3.8   \n Prior Years:         \n Non-catastrophe Losses and LAE     3.2       0.5   \n Catastrophe Losses and LAE     0.4       0.2   \n Total Incurred Losses and LAE     747.7       686.8   \n Insurance Expenses     196.2       205.1   \n Segment Adjusted Operating (Loss) Income     (0.7 )     122.1   \n Income Tax (Benefit) Expense     (0.8 )     24.2   \n Total Segment Adjusted Net Operating Income   $ 0.1     $ 97.9   \n           \n Ratios Based On Earned Premiums \n Current Year Non-catastrophe Losses and LAE Ratio     84.0 %     70.9 % \n Current Year Catastrophe Losses and LAE Ratio     0.1       0.4   \n Prior Years Non-catastrophe Losses and LAE Ratio     0.4       0.1   \n Prior Years Catastrophe Losses and LAE Ratio     —       —   \n Total Incurred Loss and LAE Ratio     84.5       71.4   \n Insurance Expense Ratio     22.2       21.3   \n Combined Ratio     106.7 %     92.7 % \n           \n Underlying Combined Ratio(1) \n Current Year Non-catastrophe Losses and LAE Ratio     84.0 %     70.9 % \n Insurance Expense Ratio     22.2       21.3   \n Underlying Combined Ratio(1)     106.2 %     92.2 % \n           \n Non-GAAP Measure Reconciliation \n Combined Ratio     106.7 %     92.7 % \n Less:         \n Current Year Catastrophe Losses and LAE Ratio     0.1       0.4   \n Prior Years Non-catastrophe Losses and LAE Ratio     0.4       0.1   \n Prior Years Catastrophe Losses and LAE Ratio     —       —   \n Underlying Combined Ratio(1)     106.2 %     92.2 % \n\n\nUnaudited selected financial information for the Life Insurance segment\nfollows.\n     Three Months Ended \n (Dollars in Millions)   Mar 31,   Mar 31, \n \n2026 \n2025 \n           \n Results of Operations \n Earned Premiums   $ 100.8   $ 99.7 \n Net Investment Income     48.7     48.4 \n Other Income     0.3     0.7 \n Total Revenues     149.8     148.8 \n Policyholders’ Benefits and Incurred Losses and LAE     64.0     62.2 \n Insurance Expenses     64.6     66.4 \n Segment Adjusted Operating Income     21.2     20.2 \n Income Tax Expense     3.2     3.0 \n Total Segment Adjusted Net Operating Income   $ 18.0   $ 17.2 \n\n\nUse of Non-GAAP Financial Measures\n\nAdjusted Consolidated Net Operating Income(1 )is an after-tax, non-GAAP\nfinancial measure and is computed by excluding from Net (Loss) Income\nattributable to Kemper Corporation the after-tax impact of:\n\n(i) Change in Fair Value of Equity and Convertible Securities;\n\n(ii) Net Realized Investment Gains;\n\n(iii) Impairment Losses;\n\n(iv) Acquisition and Disposition Related Transaction, Integration,\nRestructuring and Other Costs;\n\n(v) Debt Extinguishment, Pension Settlement and Other Charges;\n\n(vi) Goodwill Impairment Charges;\n\n(vii) Non-Core Operations; and\n\n(viii) Significant non-recurring or infrequent items that may not be\nindicative of ongoing operations\n\nSignificant non-recurring items are excluded when (a) the nature of the charge\nor gain is such that it is reasonably unlikely to recur within two years, and\n(b) there has been no similar charge or gain within the prior two years. The\nmost directly comparable GAAP financial measure is Net (Loss) Income\nattributable to Kemper Corporation. There were no applicable significant\nnon-recurring items that Kemper excluded from the calculation of Adjusted\nConsolidated Net Operating Income(1) for the three months ended March 31, 2026\nor 2025.\n\nKemper believes that Adjusted Consolidated Net Operating Income(1) provides\ninvestors with a valuable measure of its ongoing performance because it\nreveals underlying operational performance trends that otherwise might be less\napparent if the items were not excluded. Change in Fair Value of Equity and\nConvertible Securities, Net Realized Investment Gains and Impairment Losses\nrelated to investments included in Kemper’s results may vary significantly\nbetween periods and are generally driven by business decisions and external\neconomic developments such as capital market conditions that impact the values\nof Kemper’s investments, the timing of which is unrelated to the insurance\nunderwriting process. Acquisition and Disposition Related Transaction,\nIntegration, Restructuring and Other Costs may vary significantly between\nperiods and are generally driven by the timing of acquisitions and business\ndecisions which are unrelated to the insurance underwriting process. In the\nthird quarter of 2025, a restructuring program was launched to achieve\noperational and organizational efficiencies. The Company will continue to\nevaluate additional efficiency opportunities through 2027. Debt\nExtinguishment, Pension Settlement and Other Charges relate to (i) loss from\nearly extinguishment of debt, which is driven by Kemper’s financing and\nrefinancing decisions and capital needs, as well as external economic\ndevelopments such as debt market conditions, the timing of which is unrelated\nto the insurance underwriting process; (ii) settlement of pension plan\nobligations which are business decisions made by Kemper, the timing of which\nis unrelated to the underwriting process; and (iii) other charges that are\nnon-standard, not part of the ordinary course of business, and unrelated to\nthe insurance underwriting process. Goodwill Impairment Charges are excluded\nbecause they are infrequent and non-recurring charges. Non-Core Operations\nincludes the results of our Preferred Insurance business which we expect to\nfully exit. These results are excluded because they are irrelevant to our\nongoing operations and do not qualify for Discontinued Operations under\nGenerally Accepted Accounting Principles (\"GAAP\"). Significant non-recurring\nitems are excluded because, by their nature, they are not indicative of\nKemper’s business or economic trends. The preceding non-GAAP financial\nmeasures should not be considered a substitute for the comparable GAAP\nfinancial measures, as they do not fully recognize the profitability of\nKemper’s businesses.\n\nA reconciliation of Net (Loss) Income attributable to Kemper Corporation to\nAdjusted Consolidated Net Operating Income(1) for the three months ended March\n31, 2026 and 2025 is presented below.\n     Three Months Ended \n (Dollars in Millions) (Unaudited)   Mar 31,   Mar 31, \n \n2026 \n2025 \n Net (Loss) Income attributable to Kemper Corporation   $ (1.7 )   $ 99.7   \n Less Net (Loss) Income From:         \n Change in Fair Value of Equity and Convertible Securities     (1.0 )     0.1   \n Net Realized Investment Gains     0.3       0.7   \n Impairment Losses     (1.3 )     0.2   \n Acquisition and Disposition Related Transaction, Integration, Restructuring     (5.0 )     (4.2 ) \n and Other Costs \n Debt Extinguishment, Pension Settlement and Other Charges     —       0.4   \n Non-Core Operations     (7.2 )     (3.9 ) \n Adjusted Consolidated Net Operating Income(1)   $ 12.5     $ 106.4   \n\n\nDiluted Adjusted Net Operating Income per Unrestricted Share(1 )is a non-GAAP\nfinancial measure computed by dividing Adjusted Net Operating Income(1) by the\nweighted-average unrestricted shares and equivalent shares outstanding. The\nmost directly comparable GAAP financial measure is Diluted Net (Loss) Income\nper Unrestricted Share.\n\nA reconciliation of Diluted Net Operating (Loss) Income per Unrestricted Share\nto Diluted Adjusted Net Operating Income per Unrestricted Share(1) for the\nthree months ended March 31, 2026 and 2025 is presented below.\n     Three Months Ended \n (Unaudited)   Mar 31,   Mar 31, \n \n2026 \n2025 \n Diluted Net Operating (Loss) Income attributable to Kemper Corporation per   $ (0.03 )   $ 1.54   \n Unrestricted Share \n Less Net (Loss) Income per Unrestricted Share From:         \n Change in Fair Value of Equity and Convertible Securities     (0.02 )     —   \n Net Realized Investment Gains     0.01       0.01   \n Impairment Losses     (0.02 )     —   \n Acquisition and Disposition Related Transaction, Integration, Restructuring     (0.09 )     (0.07 ) \n and Other Costs \n Debt Extinguishment, Pension Settlement and Other Charges     —       0.01   \n Non-Core Operations     (0.12 )     (0.06 ) \n Diluted Adjusted Net Operating Income per Unrestricted Share(1)   $ 0.21     $ 1.65   \n\n\nReturn on Adjusted Shareholders' Equity(1) is a calculation that uses a\nnon-GAAP financial measure. It is calculated by dividing the period’s\nannualized net income attributable to Kemper Corporation by the average\nshareholders’ equity excluding net unrealized gains and losses on fixed\nmaturities, the change in discount rate on future life policyholder benefits\nand goodwill. Return on Shareholders’ Equity is the most directly comparable\nGAAP measure. We use this non-GAAP measure to identify and analyze the change\nin performance attributable to management efforts between periods. Kemper\nbelieves this non-GAAP financial measure is useful to investors because it\neliminates the effect of items that can fluctuate significantly from period to\nperiod and are generally driven by economic developments, primarily capital\nmarket conditions, the magnitude and timing of which are not influenced by\nmanagement. Kemper believes it enhances understanding and comparability of\nperformance by highlighting underlying business activity and profitability\ndrivers.\n\nA reconciliation of Return on Shareholders’ Equity to Return on Adjusted\nShareholders’ Equity(1) is presented below:\n     Three Months Ended \n (Dollars in Millions) (Unaudited)   Mar 31,   Mar 31, \n \n2026 \n2025 \n Numerator:         \n Annualized Net (Loss) Income attributable to Kemper Corporation   $ (6.8 )   $ 398.8   \n           \n Denominator:         \n Average Shareholders' Equity(2)   $ 2,665.5     $ 2,853.0   \n           \n Less: Average Net Unrealized Losses on Fixed Maturities     601.5       667.6   \n Less: Average Change in Discount Rate on Future Life Policyholder Benefits     (376.0 )     (373.2 ) \n Less: Average Goodwill     (1,250.7 )     (1,250.7 ) \n Average Adjusted Shareholders' Equity(2)   $ 1,640.3     $ 1,896.7   \n           \n Return on Shareholders' Equity:         \n Return on Shareholders' Equity     (0.3 )%     14.0 % \n Return on Adjusted Shareholders' Equity(1)     (0.4 )%     21.0 % \n           \n (2 )Average shareholders' equity and average adjusted shareholders’ equity \n is the simple average of the beginning and ending balances for the period. \n Average shareholders’ equity and average adjusted shareholders’ equity on \n a year-to-date basis is (a) the sum of the balance at the beginning of the \n year and the ending balance for each quarter within that year divided by (b) \n the number of quarters in the period presented plus one. \n\n\nUnderlying Combined Ratio(1 )is a non-GAAP financial measure. It is computed\nby adding the Current Year Non-catastrophe Losses and LAE Ratio with the\nInsurance Expense Ratio. The most directly comparable GAAP financial measure\nis the Combined Ratio, which is computed by adding Total Incurred Losses and\nLAE Ratio, including the impact of catastrophe losses and loss and LAE reserve\ndevelopment from prior years, with the Insurance Expense Ratio.\n\nKemper believes Underlying Losses and LAE and the Underlying Combined Ratio\nare useful to investors and uses these financial measures to reveal the trends\nin Kemper’s Property & Casualty Insurance segment that may be obscured\nby catastrophe losses and prior-year reserve development. These catastrophe\nlosses may cause Kemper’s loss trends to vary significantly between periods\nas a result of their incidence of occurrence and magnitude and can have a\nsignificant impact on incurred losses and LAE and the Combined Ratio.\nPrior-year reserve developments are caused by unexpected loss development on\nhistorical reserves. Because reserve development relates to the re-estimation\nof losses from earlier periods, it has no bearing on the performance of\nKemper’s insurance products in the current period. Kemper believes it is\nuseful for investors to evaluate these components separately and in the\naggregate when reviewing Kemper’s underwriting performance.\n\nAdjusted Book Value Per Share(1) is a calculation that uses a non-GAAP\nfinancial measure. It is calculated by dividing shareholders’ equity after\nexcluding the after-tax impact of net unrealized gains and losses on fixed\nincome securities, the change in discount rate on future life policyholder\nbenefits and goodwill by total Common Shares Issued and Outstanding. Book\nvalue per share is the most directly comparable GAAP financial measure. Kemper\nuses the trends in book value per share excluding the after-tax impact of net\nunrealized gains and losses on fixed income securities, the change in discount\nrate on future life policyholder benefits and goodwill in conjunction with\nbook value per share to identify and analyze the change in net worth excluding\ngoodwill attributable to management efforts between periods. Kemper believes\nthe non-GAAP financial measure is useful to investors because it eliminates\nthe effect of items that can fluctuate significantly from period to period and\nare generally driven by economic developments, primarily capital market\nconditions, the magnitude and timing of which are not influenced by\nmanagement. Kemper believes it enhances understanding and comparability of\nperformance by highlighting underlying business activity and profitability\ndrivers.\n\nA reconciliation of Book Value Per Share to Adjusted Book Value Per Share(1)\nis presented below:\n     As of \n (Dollars and Shares in Millions Except Per Share Amounts) (Unaudited)   Mar 31,   Dec 31, \n \n2026 \n2025 \n Numerator:         \n Kemper Corporation Shareholders’ Equity   $ 2,649.6     $ 2,681.4   \n           \n Less: Net Unrealized Losses on Fixed Maturities     636.7       566.2   \n Less: Change in Discount Rate on Future Life Policyholder Benefits     (401.1 )     (350.8 ) \n Less: Goodwill     (1,250.7 )     (1,250.7 ) \n Adjusted Shareholders’ Equity   $ 1,634.5     $ 1,646.1   \n           \n Denominator:         \n Common Shares Issued and Outstanding     58.821       58.667   \n           \n Book Value Per Share:         \n Book Value Per Share   $ 45.05     $ 45.71   \n           \n Less: Net Unrealized Losses on Fixed Maturities     10.82       9.65   \n Less: Change in Discount Rate on Future Life Policyholder Benefits     (6.82 )     (5.98 ) \n Less: Goodwill     (21.26 )     (21.32 ) \n Adjusted Book Value Per Share(1)   $ 27.79     $ 28.06   \n\n\nConference Call\n\nKemper will host its conference call to discuss first quarter 2026 results on\nWednesday, May 6, at 5:00 p.m. Eastern (4:00 p.m. Central). The conference\ncall will be accessible via the internet and by telephone at 833.461.5787,\nConference ID 496484973. To listen via webcast, register online at the\ninvestor section of kemper.com (http://kemper.com) at least 15 minutes prior\nto the webcast to download and install any necessary software. A replay of the\ncall will be available online at the investor section of kemper.com\n(http://kemper.com) .\n\nMore detailed financial information can be found in Kemper’s Investor\nFinancial Supplement and Earnings Call Presentation for the first quarter of\n2026, which is available at the investor section of kemper.com\n(http://kemper.com) .\n\nAbout Kemper\n\nThe Kemper family of companies is one of the nation’s leading specialized\ninsurers. With approximately $12 billion in assets, Kemper is improving the\nworld of insurance by providing affordable and easy-to-use personalized\nsolutions to individuals, families and businesses through its Kemper Auto and\nKemper Life brands. Kemper serves over 4.5 million policies, is represented by\napproximately 24,000 agents and brokers, and has approximately 7,300\nassociates dedicated to meeting the ever-changing needs of its customers.\n\nLearn more about Kemper at kemper.com (http://kemper.com) .\n\nCaution Regarding Forward-Looking Statements\n\nThis press release may contain or incorporate by reference information that\nincludes or is based on forward-looking statements within the meaning of the\nsafe-harbor provisions of the Private Securities Litigation Reform Act of\n1995. We caution investors that these forward-looking statements are not\nguarantees of future performance, and actual results may differ materially.\nSuch statements involve known and unknown risks, uncertainties, and other\nfactors, including but not limited to:\n\n\n * changes in the frequency and severity of insurance claims;\n\n * claim development and the process of estimating claim reserves;\n\n * the impacts of inflation;\n\n * changes in interest rate environment;\n\n * supply chain disruption;\n\n * product demand and pricing;\n\n * effects of legislative, governmental and regulatory actions;\n\n * heightened competition;\n\n * litigation outcomes and trends;\n\n * investment risks;\n\n * cybersecurity risks or incidents;\n\n * impact of catastrophes; and\n\n * other risks and uncertainties detailed in Kemper’s Annual Report on Form\n10-K and subsequent filings with the Securities and Exchange Commission\n(“SEC”).\n\nKemper assumes no obligation to publicly correct or update any forward-looking\nstatements as a result of events or developments subsequent to the date of\nthis press release.\n\n\n\nView source version on businesswire.com:\nhttps://www.businesswire.com/news/home/20260506230954/en/\n(https://www.businesswire.com/news/home/20260506230954/en/)\n\nInvestors: Michael Marinaccio\n\n312.661.4930 or investors@kemper.com (mailto:investors@kemper.com)\n\nMedia: Barbara Ciesemier\n\n312.661.4521 or bciesemier@kemper.com (mailto:bciesemier@kemper.com)\n\n\nCopyright Business Wire 2026","article_body_html":"","raw_payload":{"data":{"id":"nBw7WGQCya","title":"Kemper Reports First Quarter 2026 Operating Results*","author":"Business Wire","ticker":"KMPR","created":"2026-05-06T20:05:00.639Z","tickers":["KMPR"],"exchange":"NYSE","article_body":"Kemper Reports First Quarter 2026 Operating Results*\n\nKemper Corporation (NYSE: KMPR) reported a net loss of $1.7 million, or\n$(0.03) per share, for the first quarter of 2026, compared to net income of\n$99.7 million, or $1.54 per diluted share, for the first quarter of 2025.\n\nAdjusted Consolidated Net Operating Income(1) was $12.5 million, or $0.21 per\nshare, for the first quarter of 2026, compared to Adjusted Consolidated Net\nOperating Income(1 )of $106.4 million, or $1.65 per diluted share, for the\nfirst quarter of 2025.\n\nSummary of quarterly performance:\n\n\n * Adjusted Consolidated Net Operating Income(1) of $12.5 million or $0.21 per\nshare\n\n * Specialty Personal Automobile’s operating results impacted by losses in\nCalifornia; taking rate and non-rate actions to improve profitability\n\n * Specialty Commercial Automobile grew PIF at 10% YoY while producing an\nUnderlying Combined Ratio(1) of 92.4%\n\n * Life business generated solid results driven by underwriting performance and\nmanagement actions\n\n * Restructuring initiatives well underway with $60 million run-rate savings\nidentified and $50 million already actioned\n\n“Our results this quarter reflect continued pressure in parts of the\nbusiness, particularly California personal auto, while other areas of the\nportfolio are performing well and contributing positively,” said C. Thomas\nEvans, Jr., Interim CEO. “This includes strong results in our commercial\nauto business and continued personal auto diversification into key markets\nlike Florida and Texas. We are taking decisive actions across underwriting,\nclaims, and expense to return the business to profitability and drive more\nconsistent performance over time.”\n *Unless otherwise specified, discussion of our first quarter 2026 results is \n focused on net income attributable to Kemper Corporation common shareholders, \n which does not include financial results from Kemper Reciprocal that are \n presented within the condensed consolidated financial results in this release. \n The results of Kemper Reciprocal are consolidated under US GAAP. \n (1 )Non-GAAP financial measure. All Non-GAAP financial measures are denoted \n with footnote 1 throughout this release. See “Use of Non-GAAP Financial \n Measures” for additional information. \n\n     Three Months Ended \n (Dollars in Millions, Except Per Share Amounts) (Unaudited)   Mar 31,   Mar 31, \n \n2026 \n2025 \n Net (Loss) Income   $ (1.7 )   $ 99.7   \n Adjusted Consolidated Net Operating Income(1)   $ 12.5     $ 106.4   \n           \n Impact of Catastrophe Losses and Related Loss Adjustment Expense (LAE) on Net   $ (3.0 )   $ (5.6 ) \n (Loss) Income \n           \n Diluted Net (Loss) Income Per Share From:         \n Net (Loss) Income   $ (0.03 )   $ 1.54   \n Adjusted Consolidated Net Operating Income(1)   $ 0.21     $ 1.65   \n           \n Impact of Catastrophe Losses and Related LAE on Net (Loss) Income Per Share   $ (0.05 )   $ (0.09 ) \n\n\nRevenues\n\nTotal revenues for the first quarter of 2026 decreased $85.8 million to\n$1,107.2 million compared to the first quarter of 2025. The decline was\nprimarily due to lower Specialty Personal Automobile volumes, a $28.0 million\nFlorida Statutory Profit Limit Refund in the Specialty Property & Casualty\nInsurance segment, and a $12.7 million reduction in earned premiums from\nNon-Core Operations given the run-off of the Preferred Insurance business.\n\nSegment Results\n\nUnless otherwise noted, (i) the segment results discussed below are presented\non an after-tax basis, (ii) prior-year development includes both catastrophe\nand non-catastrophe losses and LAE, (iii) catastrophe losses and LAE exclude\nthe impact of prior-year development, (iv) loss ratio includes loss and LAE,\nand (v) all comparisons are made to the prior year quarter unless otherwise\nstated.\n     Three Months Ended \n (Dollars in Millions) (Unaudited)   Mar 31,   Mar 31, \n \n2026 \n2025 \n Segment Adjusted Net Operating Income:         \n Specialty Property & Casualty Insurance   $ 0.1     $ 97.9   \n Life Insurance     18.0       17.2   \n Total Segment Adjusted Net Operating Income     18.1       115.1   \n Corporate and Other Adjusted Net Operating Loss     (8.3 )     (11.4 ) \n Less: Net Loss attributable to Noncontrolling Interest     (2.7 )     (2.7 ) \n Adjusted Consolidated Net Operating Income(1)     12.5       106.4   \n Net (Loss) Income From:         \n Change in Fair Value of Equity and Convertible Securities     (1.0 )     0.1   \n Net Realized Investment Gains     0.3       0.7   \n Impairment Losses     (1.3 )     0.2   \n Acquisition and Disposition Related Transaction, Integration, Restructuring     (5.0 )     (4.2 ) \n and Other Costs \n Debt Extinguishment, Pension Settlement and Other Charges     —       0.4   \n Non-Core Operations     (7.2 )     (3.9 ) \n Net (Loss) Income attributable to Kemper Corporation   $ (1.7 )   $ 99.7   \n\n\nThe Specialty Property and Casualty Insurance segment reported adjusted net\noperating income of $0.1 million in the first quarter of 2026, compared to\nadjusted net operating income of $97.9 million in the first quarter of 2025.\nThis decrease was due primarily to an increase in our Specialty Personal\nAutomobile Underlying loss and LAE ratio(1). Specialty Personal Automobile’s\nUnderlying loss and LAE ratio(1) was 87.7 percent, compared to 70.1 percent in\nthe first quarter of 2025. The increase was primarily driven by higher claim\nseverity and frequency in California, lower business volumes, as well as a\n$28.0 million Florida Statutory Profit Limit Refund, partially offset by\nhigher average earned premiums per exposure resulting from rate increases.\n\nThe Life Insurance segment reported adjusted net operating income of $18.0\nmillion for the first quarter of 2026, compared to adjusted net operating\nincome of $17.2 million in the first quarter of 2025. The improvement was\nprimarily driven by lower Insurance Expenses and higher Earned Premiums,\npartially offset by higher Policyholders’ Benefits from life insurance\nproducts.\n\nCapital\n\nTotal Kemper Corporation Shareholders’ Equity as of March 31, 2026 was\n$2,649.6 million, a decrease of $31.8 million, or 1 percent, since year-end\n2025 primarily driven by comprehensive losses and dividend payments. Kemper\nand its direct non-insurance subsidiaries ended the quarter with cash and\ninvestments of $80.2 million, and $600.0 million of available borrowing\ncapacity under the revolving credit agreement.\n\nOn February 4, 2026, Kemper announced that its Board of Directors declared a\nquarterly dividend of $0.32 per share, or $18.3 million. The dividend was paid\non March 3, 2026, to its shareholders of record as of February 17, 2026.\n\nKemper ended the quarter with a book value per share of $45.05, a decrease of\n1 percent from $45.71 at the end of 2025. Adjusted book value per share(1) was\n$27.79 at the end of the quarter, compared to $28.06 at the end of 2025.\n\nUnaudited Condensed Consolidated Statements of (Loss) Income for the three\nmonths ended March 31, 2026 and 2025 are presented below.\n     Three Months Ended \n (Dollars in Millions, Except Per Share Amounts)   Mar 31,   Mar 31, \n \n2026 \n2025 \n Revenues:         \n Earned Premiums(2)   $ 999.3     $ 1,087.9   \n Net Investment Income     107.1       101.2   \n Other Income     3.4       2.6   \n Change in Fair Value of Equity and Convertible Securities     (1.3 )     0.1   \n Net Realized Investment Gains     0.4       0.9   \n Impairment Losses     (1.7 )     0.3   \n Total Revenues     1,107.2       1,193.0   \n Expenses:         \n Policyholders’ Benefits and Incurred Losses and Loss Adjustment Expenses(3)     828.8       767.3   \n Insurance and Other Expenses     277.0       294.5   \n Interest Expense     9.3       11.4   \n Total Expenses     1,115.1       1,073.2   \n (Loss) Income before Income Taxes     (7.9 )     119.8   \n Income Tax (Benefit) Expense     (3.5 )     22.8   \n Net (Loss) Income     (4.4 )     97.0   \n Less: Net Loss attributable to Noncontrolling Interest     (2.7 )     (2.7 ) \n Net (Loss) Income attributable to Kemper Corporation   $ (1.7 )   $ 99.7   \n           \n Net (Loss) Income attributable to Kemper Corporation per Unrestricted Share:         \n Basic   $ (0.03 )   $ 1.56   \n Diluted   $ (0.03 )   $ 1.54   \n           \n Weighted-average Outstanding (Shares in Thousands):         \n Unrestricted Shares - Basic     58,742.8       63,886.7   \n Unrestricted Shares and Equivalent Shares - Diluted     58,742.8       64,652.8   \n           \n Dividends Paid to Shareholders per Share   $ 0.32     $ 0.32   \n           \n (2) Includes a remeasurement gain related to the deferred profit liability \n within the Life insurance business of $0.9 million and $0.2 million for the \n three months ended March 31, 2026 and 2025, respectively. \n (3) Includes a remeasurement gain of $0.4 million and a remeasurement loss of \n $0.2 million related to the liability for future policyholder benefits within \n the Life insurance business for the three months ended March 31, 2026 and \n 2025, respectively. \n\n\nUnaudited business segment revenues for the three months ended March 31, 2026\nand 2025 are presented below.\n     Three Months Ended \n (Dollars in Millions)   Mar 31,   Mar 31, \n \n2026 \n2025 \n REVENUES:         \n Specialty Property & Casualty Insurance:         \n Earned Premiums:         \n Personal Automobile   $ 647.0     $ 753.7 \n Commercial Automobile     238.2       208.5 \n Total Earned Premiums     885.2       962.2 \n Net Investment Income     55.3       50.5 \n Other Income     2.7       1.3 \n Total Specialty Property & Casualty Insurance Revenues     943.2       1,014.0 \n Life Insurance:         \n Earned Premiums:         \n Life     85.6       83.7 \n Accident & Health     5.3       5.5 \n Property     9.9       10.5 \n Total Earned Premiums     100.8       99.7 \n Net Investment Income     48.7       48.4 \n Other Income     0.3       0.7 \n Total Life Insurance Revenues     149.8       148.8 \n Total Segment Revenues     1,093.0       1,162.8 \n Change in Fair Value of Equity and Convertible Securities     (1.3 )     0.1 \n Non-Core Operations     15.4       27.9 \n Net Realized Investment Gains, Impairment Losses, and Other(2)     0.1       2.2 \n Total Revenues   $ 1,107.2     $ 1,193.0 \n           \n (2 )In the fourth quarter of 2025, the Company elected to change the \n presentation of Net Realized Investment Gains (Losses), Impairment Losses, and \n Other by combining them into a single line item. Prior-period amounts have \n been recast to conform to the current-period presentation. \n \n\n KEMPER CORPORATION AND SUBSIDIARIES \n CONDENSED CONSOLIDATED BALANCE SHEETS \n (Dollars in Millions) \n (Unaudited) \n   Mar 31,   Dec 31, \n \n2026 \n2025 \n Assets:       \n Investments:       \n Fixed Maturities at Fair Value $ 6,672.2   $ 6,743.3 \n Equity Securities at Fair Value   308.4     306.4 \n Equity Method Limited Liability Investments   176.1     176.0 \n Short-term Investments at Cost which Approximates Fair Value   296.6     313.5 \n Company-Owned Life Insurance   586.2     579.2 \n Loans to Policyholders   279.6     279.9 \n Other Investments   283.9     271.3 \n Total Investments   8,603.0     8,669.6 \n Cash   92.1     124.3 \n Receivables from Policyholders   997.1     965.2 \n Other Receivables   185.3     184.7 \n Deferred Policy Acquisition Costs   669.6     655.4 \n Goodwill   1,250.7     1,250.7 \n Current Income Tax Assets   40.2     40.7 \n Deferred Income Tax Assets   95.2     96.9 \n Other Assets   406.2     410.7 \n Assets of Consolidated Variable Interest Entity       \n Fixed Maturities at Fair Value   47.2     42.1 \n Short-term Investments at Cost which Approximates Fair Value   9.2     14.4 \n Cash   0.5     1.7 \n Receivables from Policyholders   7.7     10.4 \n Other Receivables   0.5     0.4 \n Deferred Policy Acquisition Costs   1.0     1.3 \n Deferred Income Tax Assets   5.0     4.2 \n Total Assets $ 12,410.5   $ 12,472.7 \n   \n\n KEMPER CORPORATION AND SUBSIDIARIES \n CONDENSED CONSOLIDATED BALANCE SHEETS (Continued) \n (Dollars in Millions) \n (Unaudited) \n   Mar 31,   Dec 31, \n \n2026 \n2025 \n         \n Liabilities and Shareholders’ Equity:       \n Insurance Reserves:       \n Life & Health $ 3,238.9     $ 3,287.5   \n Property & Casualty   2,999.5       2,910.8   \n Total Insurance Reserves   6,238.4       6,198.3   \n Unearned Premiums   1,274.1       1,233.1   \n Policyholder Obligations   568.2       608.0   \n Deferred Income Tax Liabilities   4.3       14.8   \n Accrued Expenses and Other Liabilities   702.4       762.6   \n Long-term Debt, Non-current, at Amortized Cost   944.0       943.5   \n Liabilities of Consolidated Variable Interest Entity       \n Insurance Reserves   31.8       29.4   \n Unearned Premiums   9.9       12.1   \n Accrued Expenses and Other Liabilities   2.3       1.5   \n Total Liabilities   9,775.4       9,803.3   \n Kemper Corporation Shareholders’ Equity:       \n Common Stock   5.9       5.9   \n Paid-in Capital   1,732.6       1,723.9   \n Retained Earnings   1,137.8       1,157.8   \n Accumulated Other Comprehensive Loss   (226.7 )     (206.2 ) \n Total Kemper Corporation Shareholders’ Equity   2,649.6       2,681.4   \n Noncontrolling Interest   (14.5 )     (12.0 ) \n Total Shareholders’ Equity   2,635.1       2,669.4   \n Total Liabilities and Shareholders’ Equity $ 12,410.5     $ 12,472.7   \n   \n\n\nUnaudited selected financial information for the Specialty Property &\nCasualty Insurance segment follows.\n     Three Months Ended \n (Dollars in Millions)   Mar 31,   Mar 31, \n \n2026 \n2025 \n           \n Results of Operations \n Net Premiums Written   $ 925.0     $ 1,068.8   \n           \n Earned Premiums   $ 885.2     $ 962.2   \n Net Investment Income     55.3       50.5   \n Other Income     2.7       1.3   \n Total Revenues     943.2       1,014.0   \n Incurred Losses and LAE related to:         \n Current Year:         \n Non-catastrophe Losses and LAE     742.8       682.3   \n Catastrophe Losses and LAE     1.3       3.8   \n Prior Years:         \n Non-catastrophe Losses and LAE     3.2       0.5   \n Catastrophe Losses and LAE     0.4       0.2   \n Total Incurred Losses and LAE     747.7       686.8   \n Insurance Expenses     196.2       205.1   \n Segment Adjusted Operating (Loss) Income     (0.7 )     122.1   \n Income Tax (Benefit) Expense     (0.8 )     24.2   \n Total Segment Adjusted Net Operating Income   $ 0.1     $ 97.9   \n           \n Ratios Based On Earned Premiums \n Current Year Non-catastrophe Losses and LAE Ratio     84.0 %     70.9 % \n Current Year Catastrophe Losses and LAE Ratio     0.1       0.4   \n Prior Years Non-catastrophe Losses and LAE Ratio     0.4       0.1   \n Prior Years Catastrophe Losses and LAE Ratio     —       —   \n Total Incurred Loss and LAE Ratio     84.5       71.4   \n Insurance Expense Ratio     22.2       21.3   \n Combined Ratio     106.7 %     92.7 % \n           \n Underlying Combined Ratio(1) \n Current Year Non-catastrophe Losses and LAE Ratio     84.0 %     70.9 % \n Insurance Expense Ratio     22.2       21.3   \n Underlying Combined Ratio(1)     106.2 %     92.2 % \n           \n Non-GAAP Measure Reconciliation \n Combined Ratio     106.7 %     92.7 % \n Less:         \n Current Year Catastrophe Losses and LAE Ratio     0.1       0.4   \n Prior Years Non-catastrophe Losses and LAE Ratio     0.4       0.1   \n Prior Years Catastrophe Losses and LAE Ratio     —       —   \n Underlying Combined Ratio(1)     106.2 %     92.2 % \n\n\nUnaudited selected financial information for the Life Insurance segment\nfollows.\n     Three Months Ended \n (Dollars in Millions)   Mar 31,   Mar 31, \n \n2026 \n2025 \n           \n Results of Operations \n Earned Premiums   $ 100.8   $ 99.7 \n Net Investment Income     48.7     48.4 \n Other Income     0.3     0.7 \n Total Revenues     149.8     148.8 \n Policyholders’ Benefits and Incurred Losses and LAE     64.0     62.2 \n Insurance Expenses     64.6     66.4 \n Segment Adjusted Operating Income     21.2     20.2 \n Income Tax Expense     3.2     3.0 \n Total Segment Adjusted Net Operating Income   $ 18.0   $ 17.2 \n\n\nUse of Non-GAAP Financial Measures\n\nAdjusted Consolidated Net Operating Income(1 )is an after-tax, non-GAAP\nfinancial measure and is computed by excluding from Net (Loss) Income\nattributable to Kemper Corporation the after-tax impact of:\n\n(i) Change in Fair Value of Equity and Convertible Securities;\n\n(ii) Net Realized Investment Gains;\n\n(iii) Impairment Losses;\n\n(iv) Acquisition and Disposition Related Transaction, Integration,\nRestructuring and Other Costs;\n\n(v) Debt Extinguishment, Pension Settlement and Other Charges;\n\n(vi) Goodwill Impairment Charges;\n\n(vii) Non-Core Operations; and\n\n(viii) Significant non-recurring or infrequent items that may not be\nindicative of ongoing operations\n\nSignificant non-recurring items are excluded when (a) the nature of the charge\nor gain is such that it is reasonably unlikely to recur within two years, and\n(b) there has been no similar charge or gain within the prior two years. The\nmost directly comparable GAAP financial measure is Net (Loss) Income\nattributable to Kemper Corporation. There were no applicable significant\nnon-recurring items that Kemper excluded from the calculation of Adjusted\nConsolidated Net Operating Income(1) for the three months ended March 31, 2026\nor 2025.\n\nKemper believes that Adjusted Consolidated Net Operating Income(1) provides\ninvestors with a valuable measure of its ongoing performance because it\nreveals underlying operational performance trends that otherwise might be less\napparent if the items were not excluded. Change in Fair Value of Equity and\nConvertible Securities, Net Realized Investment Gains and Impairment Losses\nrelated to investments included in Kemper’s results may vary significantly\nbetween periods and are generally driven by business decisions and external\neconomic developments such as capital market conditions that impact the values\nof Kemper’s investments, the timing of which is unrelated to the insurance\nunderwriting process. Acquisition and Disposition Related Transaction,\nIntegration, Restructuring and Other Costs may vary significantly between\nperiods and are generally driven by the timing of acquisitions and business\ndecisions which are unrelated to the insurance underwriting process. In the\nthird quarter of 2025, a restructuring program was launched to achieve\noperational and organizational efficiencies. The Company will continue to\nevaluate additional efficiency opportunities through 2027. Debt\nExtinguishment, Pension Settlement and Other Charges relate to (i) loss from\nearly extinguishment of debt, which is driven by Kemper’s financing and\nrefinancing decisions and capital needs, as well as external economic\ndevelopments such as debt market conditions, the timing of which is unrelated\nto the insurance underwriting process; (ii) settlement of pension plan\nobligations which are business decisions made by Kemper, the timing of which\nis unrelated to the underwriting process; and (iii) other charges that are\nnon-standard, not part of the ordinary course of business, and unrelated to\nthe insurance underwriting process. Goodwill Impairment Charges are excluded\nbecause they are infrequent and non-recurring charges. Non-Core Operations\nincludes the results of our Preferred Insurance business which we expect to\nfully exit. These results are excluded because they are irrelevant to our\nongoing operations and do not qualify for Discontinued Operations under\nGenerally Accepted Accounting Principles (\"GAAP\"). Significant non-recurring\nitems are excluded because, by their nature, they are not indicative of\nKemper’s business or economic trends. The preceding non-GAAP financial\nmeasures should not be considered a substitute for the comparable GAAP\nfinancial measures, as they do not fully recognize the profitability of\nKemper’s businesses.\n\nA reconciliation of Net (Loss) Income attributable to Kemper Corporation to\nAdjusted Consolidated Net Operating Income(1) for the three months ended March\n31, 2026 and 2025 is presented below.\n     Three Months Ended \n (Dollars in Millions) (Unaudited)   Mar 31,   Mar 31, \n \n2026 \n2025 \n Net (Loss) Income attributable to Kemper Corporation   $ (1.7 )   $ 99.7   \n Less Net (Loss) Income From:         \n Change in Fair Value of Equity and Convertible Securities     (1.0 )     0.1   \n Net Realized Investment Gains     0.3       0.7   \n Impairment Losses     (1.3 )     0.2   \n Acquisition and Disposition Related Transaction, Integration, Restructuring     (5.0 )     (4.2 ) \n and Other Costs \n Debt Extinguishment, Pension Settlement and Other Charges     —       0.4   \n Non-Core Operations     (7.2 )     (3.9 ) \n Adjusted Consolidated Net Operating Income(1)   $ 12.5     $ 106.4   \n\n\nDiluted Adjusted Net Operating Income per Unrestricted Share(1 )is a non-GAAP\nfinancial measure computed by dividing Adjusted Net Operating Income(1) by the\nweighted-average unrestricted shares and equivalent shares outstanding. The\nmost directly comparable GAAP financial measure is Diluted Net (Loss) Income\nper Unrestricted Share.\n\nA reconciliation of Diluted Net Operating (Loss) Income per Unrestricted Share\nto Diluted Adjusted Net Operating Income per Unrestricted Share(1) for the\nthree months ended March 31, 2026 and 2025 is presented below.\n     Three Months Ended \n (Unaudited)   Mar 31,   Mar 31, \n \n2026 \n2025 \n Diluted Net Operating (Loss) Income attributable to Kemper Corporation per   $ (0.03 )   $ 1.54   \n Unrestricted Share \n Less Net (Loss) Income per Unrestricted Share From:         \n Change in Fair Value of Equity and Convertible Securities     (0.02 )     —   \n Net Realized Investment Gains     0.01       0.01   \n Impairment Losses     (0.02 )     —   \n Acquisition and Disposition Related Transaction, Integration, Restructuring     (0.09 )     (0.07 ) \n and Other Costs \n Debt Extinguishment, Pension Settlement and Other Charges     —       0.01   \n Non-Core Operations     (0.12 )     (0.06 ) \n Diluted Adjusted Net Operating Income per Unrestricted Share(1)   $ 0.21     $ 1.65   \n\n\nReturn on Adjusted Shareholders' Equity(1) is a calculation that uses a\nnon-GAAP financial measure. It is calculated by dividing the period’s\nannualized net income attributable to Kemper Corporation by the average\nshareholders’ equity excluding net unrealized gains and losses on fixed\nmaturities, the change in discount rate on future life policyholder benefits\nand goodwill. Return on Shareholders’ Equity is the most directly comparable\nGAAP measure. We use this non-GAAP measure to identify and analyze the change\nin performance attributable to management efforts between periods. Kemper\nbelieves this non-GAAP financial measure is useful to investors because it\neliminates the effect of items that can fluctuate significantly from period to\nperiod and are generally driven by economic developments, primarily capital\nmarket conditions, the magnitude and timing of which are not influenced by\nmanagement. Kemper believes it enhances understanding and comparability of\nperformance by highlighting underlying business activity and profitability\ndrivers.\n\nA reconciliation of Return on Shareholders’ Equity to Return on Adjusted\nShareholders’ Equity(1) is presented below:\n     Three Months Ended \n (Dollars in Millions) (Unaudited)   Mar 31,   Mar 31, \n \n2026 \n2025 \n Numerator:         \n Annualized Net (Loss) Income attributable to Kemper Corporation   $ (6.8 )   $ 398.8   \n           \n Denominator:         \n Average Shareholders' Equity(2)   $ 2,665.5     $ 2,853.0   \n           \n Less: Average Net Unrealized Losses on Fixed Maturities     601.5       667.6   \n Less: Average Change in Discount Rate on Future Life Policyholder Benefits     (376.0 )     (373.2 ) \n Less: Average Goodwill     (1,250.7 )     (1,250.7 ) \n Average Adjusted Shareholders' Equity(2)   $ 1,640.3     $ 1,896.7   \n           \n Return on Shareholders' Equity:         \n Return on Shareholders' Equity     (0.3 )%     14.0 % \n Return on Adjusted Shareholders' Equity(1)     (0.4 )%     21.0 % \n           \n (2 )Average shareholders' equity and average adjusted shareholders’ equity \n is the simple average of the beginning and ending balances for the period. \n Average shareholders’ equity and average adjusted shareholders’ equity on \n a year-to-date basis is (a) the sum of the balance at the beginning of the \n year and the ending balance for each quarter within that year divided by (b) \n the number of quarters in the period presented plus one. \n\n\nUnderlying Combined Ratio(1 )is a non-GAAP financial measure. It is computed\nby adding the Current Year Non-catastrophe Losses and LAE Ratio with the\nInsurance Expense Ratio. The most directly comparable GAAP financial measure\nis the Combined Ratio, which is computed by adding Total Incurred Losses and\nLAE Ratio, including the impact of catastrophe losses and loss and LAE reserve\ndevelopment from prior years, with the Insurance Expense Ratio.\n\nKemper believes Underlying Losses and LAE and the Underlying Combined Ratio\nare useful to investors and uses these financial measures to reveal the trends\nin Kemper’s Property & Casualty Insurance segment that may be obscured\nby catastrophe losses and prior-year reserve development. These catastrophe\nlosses may cause Kemper’s loss trends to vary significantly between periods\nas a result of their incidence of occurrence and magnitude and can have a\nsignificant impact on incurred losses and LAE and the Combined Ratio.\nPrior-year reserve developments are caused by unexpected loss development on\nhistorical reserves. Because reserve development relates to the re-estimation\nof losses from earlier periods, it has no bearing on the performance of\nKemper’s insurance products in the current period. Kemper believes it is\nuseful for investors to evaluate these components separately and in the\naggregate when reviewing Kemper’s underwriting performance.\n\nAdjusted Book Value Per Share(1) is a calculation that uses a non-GAAP\nfinancial measure. It is calculated by dividing shareholders’ equity after\nexcluding the after-tax impact of net unrealized gains and losses on fixed\nincome securities, the change in discount rate on future life policyholder\nbenefits and goodwill by total Common Shares Issued and Outstanding. Book\nvalue per share is the most directly comparable GAAP financial measure. Kemper\nuses the trends in book value per share excluding the after-tax impact of net\nunrealized gains and losses on fixed income securities, the change in discount\nrate on future life policyholder benefits and goodwill in conjunction with\nbook value per share to identify and analyze the change in net worth excluding\ngoodwill attributable to management efforts between periods. Kemper believes\nthe non-GAAP financial measure is useful to investors because it eliminates\nthe effect of items that can fluctuate significantly from period to period and\nare generally driven by economic developments, primarily capital market\nconditions, the magnitude and timing of which are not influenced by\nmanagement. Kemper believes it enhances understanding and comparability of\nperformance by highlighting underlying business activity and profitability\ndrivers.\n\nA reconciliation of Book Value Per Share to Adjusted Book Value Per Share(1)\nis presented below:\n     As of \n (Dollars and Shares in Millions Except Per Share Amounts) (Unaudited)   Mar 31,   Dec 31, \n \n2026 \n2025 \n Numerator:         \n Kemper Corporation Shareholders’ Equity   $ 2,649.6     $ 2,681.4   \n           \n Less: Net Unrealized Losses on Fixed Maturities     636.7       566.2   \n Less: Change in Discount Rate on Future Life Policyholder Benefits     (401.1 )     (350.8 ) \n Less: Goodwill     (1,250.7 )     (1,250.7 ) \n Adjusted Shareholders’ Equity   $ 1,634.5     $ 1,646.1   \n           \n Denominator:         \n Common Shares Issued and Outstanding     58.821       58.667   \n           \n Book Value Per Share:         \n Book Value Per Share   $ 45.05     $ 45.71   \n           \n Less: Net Unrealized Losses on Fixed Maturities     10.82       9.65   \n Less: Change in Discount Rate on Future Life Policyholder Benefits     (6.82 )     (5.98 ) \n Less: Goodwill     (21.26 )     (21.32 ) \n Adjusted Book Value Per Share(1)   $ 27.79     $ 28.06   \n\n\nConference Call\n\nKemper will host its conference call to discuss first quarter 2026 results on\nWednesday, May 6, at 5:00 p.m. Eastern (4:00 p.m. Central). The conference\ncall will be accessible via the internet and by telephone at 833.461.5787,\nConference ID 496484973. To listen via webcast, register online at the\ninvestor section of kemper.com (http://kemper.com) at least 15 minutes prior\nto the webcast to download and install any necessary software. A replay of the\ncall will be available online at the investor section of kemper.com\n(http://kemper.com) .\n\nMore detailed financial information can be found in Kemper’s Investor\nFinancial Supplement and Earnings Call Presentation for the first quarter of\n2026, which is available at the investor section of kemper.com\n(http://kemper.com) .\n\nAbout Kemper\n\nThe Kemper family of companies is one of the nation’s leading specialized\ninsurers. With approximately $12 billion in assets, Kemper is improving the\nworld of insurance by providing affordable and easy-to-use personalized\nsolutions to individuals, families and businesses through its Kemper Auto and\nKemper Life brands. Kemper serves over 4.5 million policies, is represented by\napproximately 24,000 agents and brokers, and has approximately 7,300\nassociates dedicated to meeting the ever-changing needs of its customers.\n\nLearn more about Kemper at kemper.com (http://kemper.com) .\n\nCaution Regarding Forward-Looking Statements\n\nThis press release may contain or incorporate by reference information that\nincludes or is based on forward-looking statements within the meaning of the\nsafe-harbor provisions of the Private Securities Litigation Reform Act of\n1995. We caution investors that these forward-looking statements are not\nguarantees of future performance, and actual results may differ materially.\nSuch statements involve known and unknown risks, uncertainties, and other\nfactors, including but not limited to:\n\n\n * changes in the frequency and severity of insurance claims;\n\n * claim development and the process of estimating claim reserves;\n\n * the impacts of inflation;\n\n * changes in interest rate environment;\n\n * supply chain disruption;\n\n * product demand and pricing;\n\n * effects of legislative, governmental and regulatory actions;\n\n * heightened competition;\n\n * litigation outcomes and trends;\n\n * investment risks;\n\n * cybersecurity risks or incidents;\n\n * impact of catastrophes; and\n\n * other risks and uncertainties detailed in Kemper’s Annual Report on Form\n10-K and subsequent filings with the Securities and Exchange Commission\n(“SEC”).\n\nKemper assumes no obligation to publicly correct or update any forward-looking\nstatements as a result of events or developments subsequent to the date of\nthis press release.\n\n\n\nView source version on businesswire.com:\nhttps://www.businesswire.com/news/home/20260506230954/en/\n(https://www.businesswire.com/news/home/20260506230954/en/)\n\nInvestors: Michael Marinaccio\n\n312.661.4930 or investors@kemper.com (mailto:investors@kemper.com)\n\nMedia: Barbara Ciesemier\n\n312.661.4521 or bciesemier@kemper.com (mailto:bciesemier@kemper.com)\n\n\nCopyright Business Wire 2026"},"type":"article","timestamp":"2026-05-06T20:05:00.752863652Z","server_sent_at_ms":1778097900752},"received_at":"2026-05-06T20:05:00.827Z","source_url":"https://www.businesswire.com/news/home/20260506230954/en/"},"analysis":{"id":"18834","press_release_id":"23998","analysis_json":{"industry":{"label":"Insurance","sector":"Financials"},"redFlags":["Specialty P&C Combined Ratio deteriorated to 106.7%","Net loss of $(0.03) per share vs net income of $1.54 in prior year"],"eventType":"earnings","narrative":"Kemper reported a first-quarter net loss of $1.7 million, or $(0.03) per share, reversing a year-ago profit of $99.7 million as losses in the California Personal Auto business pressured results.\n\nAdjusted Net Operating Income fell to $12.5 million, or $0.21 per share, while the Specialty P&C segment’s combined ratio deteriorated significantly to 106.7% from 92.7% a year prior.\n\nThe company declared a $0.32 per share dividend and noted that restructuring initiatives are underway with $60 million in run-rate savings identified to address profitability issues.","sentiment":"mixed","agentHooks":{"shouldPost":false,"suggestedAngle":"Earnings miss driven by California auto losses, offsetting positive Life segment results and restructuring efforts."},"keyFigures":{"revenue":"$1,107.2 million","customDimensions":{"adjusted_eps":0.21,"combined_ratio":"106.7%","dividend_per_share":0.32,"book_value_per_share":45.05,"adjusted_operating_income":"$12.5 million","underlying_combined_ratio":"106.2%"}},"quotedText":"Our results this quarter reflect continued pressure in parts of the business, particularly California personal auto, while other areas of the portfolio are performing well and contributing positively","namedEntities":{"people":[{"name":"C. Thomas Evans, Jr.","role":"Interim CEO"}],"products":[],"companies":[{"name":"Kemper Corporation","ticker":"KMPR"}],"dollarAmounts":[{"amount":"$1.7 million","context":"Q1 2026 net loss"},{"amount":"$12.5 million","context":"Adjusted Consolidated Net Operating Income"},{"amount":"$28.0 million","context":"Florida Statutory Profit Limit Refund"},{"amount":"$60 million","context":"run-rate savings identified from restructuring"},{"amount":"$0.32 per share","context":"quarterly dividend"}]},"materialImpact":{"score":3,"reasoning":"Kemper reported a significant swing to a net loss of $0.03 per share from a profit of $1.54 a year ago, driven by severe deterioration in the Specialty Personal Auto segment due to California losses. However, Adjusted Operating Income remained positive at $0.21 per share, and the Life segment showed growth. The company is actively restructuring with identified savings, but the elevated combined ratio signals ongoing underwriting challenges."},"tickerRelevance":{"others":[],"primary":"KMPR"},"globalImportance":30,"audienceRelevance":35,"eventTypeSecondary":["dividend"],"importanceComponents":{"tickerTier":"mid-cap","eventGravity":"earnings-miss-with-operational-issues","sectorWeight":"insurance","householdBrandBoost":false}},"event_type":"earnings","event_type_secondary":["dividend"],"sentiment":"mixed","material_impact_score":3,"narrative":"Kemper reported a first-quarter net loss of $1.7 million, or $(0.03) per share, reversing a year-ago profit of $99.7 million as losses in the California Personal Auto business pressured results.\n\nAdjusted Net Operating Income fell to $12.5 million, or $0.21 per share, while the Specialty P&C segment’s combined ratio deteriorated significantly to 106.7% from 92.7% a year prior.\n\nThe company declared a $0.32 per share dividend and noted that restructuring initiatives are underway with $60 million in run-rate savings identified to address profitability issues.","key_figures":{"revenue":"$1,107.2 million","customDimensions":{"adjusted_eps":0.21,"combined_ratio":"106.7%","dividend_per_share":0.32,"book_value_per_share":45.05,"adjusted_operating_income":"$12.5 million","underlying_combined_ratio":"106.2%"}},"named_entities":{"people":[{"name":"C. Thomas Evans, Jr.","role":"Interim CEO"}],"products":[],"companies":[{"name":"Kemper Corporation","ticker":"KMPR"}],"dollarAmounts":[{"amount":"$1.7 million","context":"Q1 2026 net loss"},{"amount":"$12.5 million","context":"Adjusted Consolidated Net Operating Income"},{"amount":"$28.0 million","context":"Florida Statutory Profit Limit Refund"},{"amount":"$60 million","context":"run-rate savings identified from restructuring"},{"amount":"$0.32 per share","context":"quarterly dividend"}]},"model_name":"glm-4.7","prompt_hash":"sha256:6c7fa2f5e3b62e83","schema_hash":"sha256:ee8f711bc9bfba0d","created_at":"2026-05-07T13:32:38.473Z","global_importance":30,"audience_relevance":35,"importance_components":{"tickerTier":"mid-cap","eventGravity":"earnings-miss-with-operational-issues","sectorWeight":"insurance","householdBrandBoost":false}},"durationMs":null,"modelName":"glm-4.7"}}