\n\u201cWe are pleased with the improvement in our third quarter results, but we have more work to do,\u201d said Stephen J. McAnena, President and Chief Executive Officer. \u201cOur focus remains on disciplined execution and returning Kemper to consistent, sustainable profitability.\u201d<\/p>\n
Preliminary Third Quarter Financial Highlights*<\/b><\/p>\n Third Quarter Earnings Announcement<\/b><\/p>\n \nKemper expects to release its complete third quarter 2026 financial results on Monday, November 9, 2026<\/b>, followed by its previously scheduled earnings conference call on Tuesday, November 10, 2026, at 7:00 a.m. Central Time.<\/b><\/p>\n \n*Unless otherwise specified, discussion of our third quarter 2026 results is focused on net income attributable to Kemper Corporation common shareholders, which does not include financial results from Kemper Reciprocal. The results of Kemper Reciprocal are consolidated under US GAAP.<\/p>\n<\/td>\n<\/tr>\n 1 <\/sup>Non-GAAP financial measure. All Non-GAAP financial measures are denoted with footnote 1 throughout this release. See \u201cUse of Non-GAAP Financial Measures\u201d for additional information.<\/p>\n<\/td>\n<\/tr>\n<\/table>\n Use of Non-GAAP Financial Measures<\/b><\/p>\n Adjusted Consolidated Net Operating Income<\/span> is an after-tax, non-GAAP financial measure and is computed by excluding from Net Income (Loss) attributable to Kemper Corporation the after-tax impact of:<\/p>\n \n(i) Change in Fair Value of Equity and Convertible Securities; \nSignificant non-recurring items are excluded when (a) the nature of the charge or gain is such that it is reasonably unlikely to recur within two years, and (b) there has been no similar charge or gain within the prior two years. The most directly comparable GAAP financial measure is Net Income (Loss) attributable to Kemper Corporation. There were no applicable significant non-recurring items that Kemper excluded from the calculation of Adjusted Consolidated Net Operating Income for the three months ended June 30, 2026 or September 30, 2026.<\/p>\n \nKemper believes that Adjusted Consolidated Net Operating Income 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. Change in Fair Value of Equity and Convertible Securities, Net Realized Investment (Losses) Gains and Impairment Losses related to investments included in Kemper\u2019s results may vary significantly between periods and are generally driven by business decisions and external economic developments such as capital market conditions that impact the values of Kemper\u2019s investments, the timing of which is unrelated to the insurance underwriting process. Acquisition and Disposition Related Transaction, Integration, Restructuring and Other Costs may vary significantly between periods and are generally driven by the timing of business decisions which are unrelated to the insurance underwriting process. In the second quarter of 2026, the Company completed the sale of Newins and recorded a gain in connection with the transaction. In the third quarter of 2025, a restructuring program was launched to achieve operational and organizational efficiencies. The Company will continue to evaluate additional efficiency opportunities through 2027. Debt Extinguishment and Other Charges relate to (i) loss from early extinguishment of debt, which is driven by Kemper\u2019s financing and refinancing decisions and capital needs, as well as external economic developments such as debt market conditions, the timing of which is unrelated to the insurance underwriting process; and (ii) other charges that are non-standard, not part of the ordinary course of business, and unrelated to the insurance underwriting process. Goodwill Impairments are excluded because they are infrequent and non-recurring charges. Non-Core Operations includes the results of our Preferred Insurance business which we expect to fully exit. These results are excluded because they are irrelevant to our ongoing operations and do not qualify for Discontinued Operations under GAAP. Significant non-recurring items are excluded because, by their nature, they are not indicative of Kemper\u2019s business or economic trends. The preceding non-GAAP financial measures should not be considered a substitute for the comparable GAAP financial measures, as they do not fully recognize the profitability of Kemper\u2019s businesses.<\/p>\n \nA reconciliation of Net Income (Loss) attributable to Kemper Corporation to Adjusted Consolidated Net Operating Income for the three months ended September 30, 2026 and June 30, 2026 is presented below.<\/p>\n\n
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(ii) Net Realized Investment (Losses) Gains;
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(iii) Impairment Losses;
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(iv) Acquisition and Disposition Related Transaction, Integration, Restructuring and Other Costs;
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(v) Debt Extinguishment and Other Charges;
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(vi) Goodwill Impairment;
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(vii) Non-Core Operations; and
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(viii) Significant non-recurring or infrequent items that may not be indicative of ongoing operations<\/p>\n
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