Kemper Corporation (NYSE: KMPR) reported today net income of $47.7 million, or $0.92 per diluted share, for the third quarter of 2017, compared to a net loss of $16.3 million, or $0.32 per share, for the third quarter of 2016. Consolidated net operating income1 was $44.4 million, or $0.85 per diluted share, for the third quarter of 2017, compared to a consolidated net operating loss of $20.4 million, or $0.40 per share, for the third quarter of 2016. The third quarter 2016 results included a $50.5 million after-tax charge related to the voluntary Life & Health outreach efforts. Excluding this charge, net operating results increased primarily from improved underlying performance in the Property & Casualty division and higher net investment income, partially offset by higher catastrophe losses.

  Three Months Ended   Nine Months Ended
Sep 30,   Sep 30, Sep 30,   Sep 30,
(Dollars in Millions, Except Per Share Amounts) (Unaudited) 2017 2016 2017 2016
Consolidated Net Operating Income (Loss)1 $ 44.4 $ (20.4 ) $ 61.5 $ (16.4 )
Income (Loss) from Continuing Operations 47.8 (18.3 ) 84.0 (16.4 )
Net Income (Loss) 47.7 (16.3 ) 84.0 (14.4 )
 

Impact of Catastrophe Losses and Related Loss Adjustment Expense (LAE) on
Net Income (Loss)

$ (21.5 ) $ (8.2 ) $ (87.2 ) $ (66.6 )
 
Diluted Net Income (Loss) Per Share From:
Consolidated Net Operating Income (Loss)1 $ 0.85 $ (0.40 ) $ 1.19 $ (0.31 )
Continuing Operations 0.92 (0.36 ) 1.62 (0.31 )
Net Income (Loss) 0.92 (0.32 ) 1.62 (0.27 )
 
Impact of Catastrophe Losses and Related LAE on Net Income (Loss) Per Share $ (0.41 ) $ (0.16 ) $ (1.68 ) $ (1.29 )

1 Consolidated net operating income (loss) is an after-tax, non-GAAP financial measure. See “Use of Non-GAAP Financial Measures” for additional information.

“While our turnaround continues, I am pleased with the progress we have accomplished to date. Despite elevated catastrophes, Kemper had a strong quarter producing $44 million in consolidated net operating income. This is a testament to the growing strength of our nonstandard auto business, which grew earned premiums nearly 20 percent over the prior year quarter, the continued stable earnings produced by our life and health business and our strong investment function,” commented Joseph P. Lacher, Jr., Kemper’s President and Chief Executive Officer.

Capital

Kemper’s total capital at the end of the third quarter was $2,674.6 million, an increase of $49.1 million in the quarter. Cash and investments at the holding company were $188.2 million at the end of the third quarter and the $225 million revolving credit agreement was undrawn.

During the third quarter of 2017, Kemper paid dividends of $12.4 million, bringing total dividends paid in the first nine months of the year to $37.1 million.

Kemper ended the quarter with a book value per share of $40.48, up 5 percent from $38.52 at the end of 2016, driven by net income and the impact of lower market yields on the value of our fixed maturity portfolio, partially offset by dividends paid to shareholders. Book value per share excluding net unrealized gains on fixed maturities was $35.87, up 2 percent from $35.00 at the end of 2016 driven by higher net income.

Revenues

Total revenues for the third quarter of 2017 increased $49.6 million, or 8 percent, to $690.3 million, compared to the third quarter of 2016, driven by $39.3 million higher nonstandard personal auto earned premiums. Nonstandard personal auto earned premiums increased from both higher policies in force and higher premium rates. Net investment income increased $8.2 million to $85.9 million in the third quarter of 2017, primarily from $8.0 million higher net investment income on the alternative investments portfolio. Net realized investment gains were $5.2 million in the third quarter of 2017, compared to $3.3 million last year.

The investment portfolio in total generated a pre-tax equivalent annualized book yield of 5.8 percent for the third quarter of 2017, compared to 5.3 percent in 2016.

Segment Results

Unless otherwise noted, (i) the segment results discussed below are presented on an after-tax basis, (ii) prior-year development includes both catastrophe and non-catastrophe losses and LAE, (iii) catastrophe losses and LAE exclude the impact of prior-year development, (iv) underlying loss ratio includes loss and LAE, and (v) all comparisons are made to the prior year quarter unless otherwise stated.

  Three Months Ended   Nine Months Ended
Sep 30,   Sep 30, Sep 30,   Sep 30,
(Dollars in Millions) (Unaudited) 2017 2016 2017 2016
Segment Net Operating Income (Loss):
Property & Casualty Insurance $ 22.9 $ 12.1 $ 5.7 $ (9.9 )
Life & Health Insurance 23.5   (29.4 ) 65.5   7.3  
Total Segment Net Operating Income (Loss) 46.4 (17.3 ) 71.2 (2.6 )
Corporate and Other Net Operating Loss (2.0 ) (3.1 ) (9.7 ) (13.8 )
Consolidated Net Operating Income (Loss) 44.4 (20.4 ) 61.5 (16.4 )
Net Income (Loss) From:
Net Realized Gains on Sales of Investments 5.3 7.5 29.3 15.6
Net Impairment Losses Recognized in Earnings (1.9 ) (5.4 ) (6.8 ) (15.6 )
Income (Loss) from Continuing Operations $ 47.8   $ (18.3 ) $ 84.0   $ (16.4 )

The Property & Casualty Insurance segment reported net operating income of $22.9 million in the third quarter of 2017, compared to $12.1 million in 2016. Results increased primarily from improved underlying performance and $5.5 million higher net investment income, partially offset by higher catastrophe losses. Catastrophe losses were $19.4 million, compared to $7.3 million last year.

The Property & Casualty Insurance segment’s underlying combined ratio improved 6.0 percentage points to 92.6 percent in the third quarter of 2017. The underlying loss ratio improved 4.8 percentage points, primarily from improvement in the nonstandard personal auto line, which improved 11.5 percentage points to 75.2 percent in the quarter, as average earned premium outpaced loss cost trends. Preferred personal auto’s underlying loss ratio increased slightly to 69.7 percent. However, the claims, underwriting and agency management actions taken previously are improving the quarter-over-quarter variance. The underlying loss ratio for homeowners increased 1.7 percentage points to 55.4 percent, primarily related to non-catastrophe weather related losses.

The Property & Casualty Insurance segment’s expense ratio improved 1.2 percentage points as a larger percentage of earned premiums were generated by the nonstandard auto business, which runs at a lower expense ratio. Cost initiatives and the greater premium base also contributed to the improvement.

The Life & Health Insurance segment reported net operating income of $23.5 million for the third quarter of 2017, compared to a net operating loss of $29.4 million in 2016. The prior year results include a $50.5 million charge to implement our voluntary life insurance outreach efforts. Excluding this charge, results improved $2.4 million, primarily from lower expenses and higher net investment income.

Unaudited condensed consolidated statements of operations for the three and nine months ended September 30, 2017 and 2016 are presented below.

  Three Months Ended   Nine Months Ended
Sep 30,   Sep 30, Sep 30,   Sep 30,
(Dollars in Millions, Except Per Share Amounts) 2017 2016 2017 2016
Revenues:
Earned Premiums $ 598.2 $ 558.9 $ 1,744.1 $ 1,658.6
Net Investment Income 85.9 77.7 244.6 218.4
Other Income 1.0 0.8 2.9 2.2
Net Realized Gains on Sales of Investments 8.1 11.6 45.0 24.0
Other-than-temporary Impairment Losses:
Total Other-than-temporary Impairment Losses (2.9 ) (8.3 ) (10.7 ) (24.3 )
Portion of Losses Recognized in Other Comprehensive Income —   —   0.2   0.3  
Net Impairment Losses Recognized in Earnings (2.9 ) (8.3 ) (10.5 ) (24.0 )
Total Revenues 690.3   640.7   2,026.1   1,879.2  
Expenses:
Policyholders’ Benefits and Incurred Losses and Loss Adjustment Expenses 440.1 490.2 1,364.9 1,362.5
Insurance Expenses 163.7 161.7 485.2 488.8
Interest and Other Expenses 18.2   22.0   59.1   65.0  
Total Expenses 622.0   673.9   1,909.2   1,916.3  
Income (Loss) from Continuing Operations before Income Taxes 68.3 (33.2 ) 116.9 (37.1 )
Income Tax Benefit (Expense) (20.5 ) 14.9   (32.9 ) 20.7  
Income (Loss) from Continuing Operations 47.8 (18.3 ) 84.0 (16.4 )
Income (Loss) from Discontinued Operations (0.1 ) 2.0   —   2.0  
Net Income (Loss) $ 47.7   $ (16.3 ) $ 84.0   $ (14.4 )
 
Income (Loss) from Continuing Operations Per Unrestricted Share:
Basic $ 0.92   $ (0.36 ) $ 1.63   $ (0.31 )
Diluted $ 0.92   $ (0.36 ) $ 1.62   $ (0.31 )
 
Net Income (Loss) Per Unrestricted Share:
Basic $ 0.92   $ (0.32 ) $ 1.63   $ (0.27 )
Diluted $ 0.92   $ (0.32 ) $ 1.62   $ (0.27 )
 
Weighted-average Outstanding (Shares in Thousands):
Unrestricted Shares - Basic 51,366.8   51,122.5   51,308.7   51,140.6  
Unrestricted Shares and Equivalent Shares - Diluted 51,566.4   51,122.5   51,480.3   51,140.6  
 
Dividends Paid to Shareholders Per Share $ 0.24   $ 0.24   $ 0.72   $ 0.72  

Unaudited business segment revenues for the three and nine months ended September 30, 2017 and 2016 are presented below.

  Three Months Ended   Nine Months Ended
Sep 30,   Sep 30, Sep 30,   Sep 30,
(Dollars in Millions) 2017 2016 2017 2016
REVENUES:
Property & Casualty Insurance:
Earned Premiums:
Personal Automobile $ 353.0 $ 313.8 $ 1,012.8 $ 927.4
Homeowners 66.7 68.5 199.6 204.2
Other Personal 10.7   11.3   32.2   33.9  
Total Personal 430.4 393.6 1,244.6 1,165.5
Commercial Automobile 13.1   13.3   38.5   40.2  
Total Earned Premiums 443.5 406.9 1,283.1 1,205.7
Net Investment Income 27.8 20.4 72.5 52.0
Other Income 0.4   0.1   0.9   0.4  
Total Property & Casualty Insurance 471.7   427.4   1,356.5   1,258.1  
Life & Health Insurance:
Earned Premiums:
Life 94.5 95.8 285.6 285.7
Accident and Health 42.0 37.6 120.6 111.2
Property 18.2   18.6   54.8   56.0  
Total Earned Premiums 154.7 152.0 461.0 452.9
Net Investment Income 55.9 54.5 163.8 159.6
Other Income 0.7   0.7   1.9   1.9  
Total Life & Health Insurance 211.3   207.2   626.7   614.4  
Total Segment Revenues 683.0 634.6 1,983.2 1,872.5
Net Realized Gains on Sales of Investments 8.1 11.6 45.0 24.0
Net Impairment Losses Recognized in Earnings (2.9 ) (8.3 ) (10.5 ) (24.0 )
Other 2.1   2.8   8.4   6.7  
Total Revenues $ 690.3   $ 640.7   $ 2,026.1   $ 1,879.2  
KEMPER CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in Millions)
  Sep 30,   Dec 31,
2017 2016
Assets: (Unaudited)
Investments:
Fixed Maturities at Fair Value $ 5,242.8 $ 5,124.9
Equity Securities at Fair Value 512.1 481.7
Equity Method Limited Liability Investments at Cost Plus Cumulative Undistributed Earnings 160.1 175.9
Fair Value Option Investments 77.1 111.4
Short-term Investments at Cost which Approximates Fair Value 239.0 273.7
Other Investments 420.0   439.9
Total Investments 6,651.1   6,607.5
Cash 137.6 115.7
Receivables from Policyholders 374.8 336.5
Other Receivables 182.4 198.6
Deferred Policy Acquisition Costs 361.7 332.0
Goodwill 323.0 323.0
Current Income Tax Assets 0.9 15.5
Deferred Income Tax Assets — 25.8
Other Assets 269.5   255.9
Total Assets $ 8,301.0   $ 8,210.5
Liabilities and Shareholders’ Equity:
Insurance Reserves:
Life and Health $ 3,509.8 $ 3,475.3
Property and Casualty 968.5   931.4
Total Insurance Reserves 4,478.3   4,406.7
Unearned Premiums 672.0 618.7
Deferred Income Tax Liabilities 11.9 —
Current Income Tax Liabilities 6.8 5.1
Long-term Debt, Current and Non-current, at Amortized Cost 592.2 751.6
Accrued Expenses and Other Liabilities 457.4   453.2
Total Liabilities 6,218.6   6,235.3
Shareholders’ Equity:
Common Stock 5.1 5.1
Paid-in Capital 672.1 660.3
Retained Earnings 1,218.8 1,172.8
Accumulated Other Comprehensive Income 186.4   137.0
Total Shareholders’ Equity 2,082.4   1,975.2
Total Liabilities and Shareholders’ Equity $ 8,301.0   $ 8,210.5

Unaudited selected financial information for the Property & Casualty Insurance segment follows.

  Three Months Ended   Nine Months Ended
Sep 30,   Sep 30, Sep 30,   Sep 30,
(Dollars in Millions) 2017 2016 2017 2016

Results of Operations

Net Premiums Written $ 466.7   $ 422.7   $ 1,336.3   $ 1,230.8  
 
Earned Premiums $ 443.5 $ 406.9 $ 1,283.1 $ 1,205.7
Net Investment Income 27.8 20.4 72.5 52.0
Other Income 0.4   0.1   0.9   0.4  
Total Revenues 471.7   427.4   1,356.5   1,258.1  
Incurred Losses and LAE related to:
Current Year:
Non-catastrophe Losses and LAE 313.1 306.7 924.5 913.3
Catastrophe Losses and LAE 29.8 11.3 128.2 97.9
Prior Years:
Non-catastrophe Losses and LAE 1.6 3.1 23.0 (1.3 )
Catastrophe Losses and LAE (1.2 ) (3.9 ) (4.4 ) (16.2 )
Total Incurred Losses and LAE 343.3 317.2 1,071.3 993.7
Insurance Expenses 97.6   94.6   287.4   288.8  
Operating Income (Loss) 30.8 15.6 (2.2 ) (24.4 )
Income Tax Benefit (Expense) (7.9 ) (3.5 ) 7.9   14.5  
Segment Net Operating Income (Loss) $ 22.9   $ 12.1   $ 5.7   $ (9.9 )
 

Ratios Based On Earned Premiums

Current Year Non-catastrophe Losses and LAE Ratio 70.6 % 75.4 % 72.0 % 75.7 %
Current Year Catastrophe Losses and LAE Ratio 6.7 2.8 10.0 8.1
Prior Years Non-catastrophe Losses and LAE Ratio 0.4 0.8 1.8 (0.1 )
Prior Years Catastrophe Losses and LAE Ratio (0.3 ) (1.0 ) (0.3 ) (1.3 )
Total Incurred Loss and LAE Ratio 77.4 78.0 83.5 82.4
Insurance Expense Ratio 22.0   23.2   22.4   24.0  
Combined Ratio 99.4 % 101.2 % 105.9 % 106.4 %
 

Underlying Combined Ratio

Current Year Non-catastrophe Losses and LAE Ratio 70.6 % 75.4 % 72.0 % 75.7 %
Insurance Expense Ratio 22.0   23.2   22.4   24.0  
Underlying Combined Ratio 92.6 % 98.6 % 94.4 % 99.7 %
 

Non-GAAP Measure Reconciliation

Underlying Combined Ratio 92.6 % 98.6 % 94.4 % 99.7 %
Current Year Catastrophe Losses and LAE Ratio 6.7 2.8 10.0 8.1
Prior Years Non-catastrophe Losses and LAE Ratio 0.4 0.8 1.8 (0.1 )
Prior Years Catastrophe Losses and LAE Ratio (0.3 ) (1.0 ) (0.3 ) (1.3 )
Combined Ratio as Reported 99.4 % 101.2 % 105.9 % 106.4 %

Unaudited selected financial information for the Life & Health Insurance segment follows.

  Three Months Ended   Nine Months Ended
Sep 30,   Sep 30, Sep 30,   Sep 30,
(Dollars in Millions) 2017 2016 2017 2016

Results of Operations

Earned Premiums $ 154.7 $ 152.0 $ 461.0 $ 452.9
Net Investment Income 55.9 54.5 163.8 159.6
Other Income 0.7   0.7   1.9   1.9  
Total Revenues 211.3   207.2   626.7   614.4  
Policyholders’ Benefits and Incurred Losses and LAE 96.8 173.0 293.6 368.8
Insurance Expenses 78.5   79.9   233.3   235.0  
Operating Profit (Loss) 36.0 (45.7 ) 99.8 10.6
Income Tax Benefit (Expense) (12.5 ) 16.3   (34.3 ) (3.3 )
Segment Net Operating Income (Loss) $ 23.5   $ (29.4 ) $ 65.5   $ 7.3  

Use of Non-GAAP Financial Measures

Consolidated Net Operating Income (Loss)

Consolidated Net Operating Income (Loss) is an after-tax, non-GAAP financial measure computed by excluding from Income (Loss) from Continuing Operations the after-tax impact of 1) net realized gains on sales of investments, 2) net impairment losses recognized in earnings related to investments, 3) loss from early extinguishment of debt and 4) significant non-recurring or infrequent items that may not be indicative of ongoing operations. Significant 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 Income (Loss) from Continuing Operations.

Kemper believes that Consolidated Net Operating Income (Loss) provides investors with a valuable measure of its ongoing performance because it reveals underlying operational performance trends that otherwise might be less apparent if the items were not excluded. Net realized gains on sales of investments and net impairment losses recognized in earnings related to investments included in Kemper’s 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 the company’s investments, the timing of which is unrelated to the insurance underwriting process. Loss from Early Extinguishment of Debt is driven by the company’s 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. Significant non-recurring items are excluded because, by their nature, they are not indicative of Kemper’s business or economic trends.

A reconciliation of Consolidated Net Operating Income (Loss) to Income (Loss) from Continuing Operations for the three and nine months ended September 30, 2017 and 2016 is presented below.

  Three Months Ended   Nine Months Ended
Sep 30,   Sep 30, Sep 30,   Sep 30,
(Dollars in Millions) (Unaudited) 2017 2016 2017 2016
Consolidated Net Operating Income (Loss) $ 44.4 $ (20.4 ) $ 61.5 $ (16.4 )
Net Income (Loss) From:
Net Realized Gains on Sales of Investments 5.3 7.5 29.3 15.6
Net Impairment Losses Recognized in Earnings (1.9 ) (5.4 ) (6.8 ) (15.6 )
Income (Loss) from Continuing Operations $ 47.8   $ (18.3 ) $ 84.0   $ (16.4 )
 

Diluted Consolidated Net Operating Income (Loss) Per Unrestricted Share

Diluted Consolidated Net Operating Income (Loss) Per Unrestricted Share is a non-GAAP financial measure computed by dividing Consolidated Net Operating Income (Loss) attributed to unrestricted shares by the weighted-average unrestricted shares and equivalent shares outstanding. The most directly comparable GAAP financial measure is Diluted Income (Loss) from Continuing Operations Per Unrestricted Share.

A reconciliation of Diluted Consolidated Net Operating Income (Loss) Per Unrestricted Share to Diluted Income (Loss) from Continuing Operations Per Unrestricted Share for the three and nine months ended September 30, 2017 and 2016 is presented below.

  Three Months Ended   Nine Months Ended
Sep 30,   Sep 30, Sep 30,   Sep 30,
(Unaudited) 2017 2016 2017 2016
Diluted Consolidated Net Operating Income (Loss) Per Unrestricted Share $ 0.85 $ (0.40 ) $ 1.19 $ (0.31 )
Net Income (Loss) Per Unrestricted Share From:
Net Realized Gains on Sales of Investments 0.10 0.15 0.56 0.30
Net Impairment Losses Recognized in Earnings (0.03 ) (0.11 ) (0.13 ) (0.30 )
Diluted Income (Loss) from Continuing Operations Per Unrestricted Share $ 0.92   $ (0.36 ) $ 1.62   $ (0.31 )
 

Book Value Per Share Excluding Net Unrealized Gains on Fixed Maturities

Book Value Per Share Excluding Net Unrealized Gains on Fixed Maturities is a ratio that uses a non-GAAP financial measure. It is calculated by dividing shareholders’ equity after excluding the after-tax impact of net unrealized gains on fixed income securities by total Common Shares Issued and Outstanding. Book Value Per Share is the most directly comparable GAAP financial measure. Kemper uses the trends in book value per share, excluding the after-tax impact of net unrealized gains on fixed income securities, in conjunction with book value per share to identify and analyze the change in net worth attributable to management efforts between periods. Kemper believes the non-GAAP financial measure is useful to investors because it eliminates the effect of items that can fluctuate significantly from period to period and are generally driven by economic developments, primarily capital market conditions, the magnitude and timing of which are not influenced by management. Kemper believes it enhances understanding and comparability of performance by highlighting underlying business activity and profitability drivers.

A reconciliation of the numerator used in the computation of Book Value Per Share Excluding Net Unrealized Gains on Fixed Maturities and Book Value Per Share at September 30, 2017 and December 31, 2016 is presented below.

  Sep 30,   Dec 31,
(Dollars in Millions) (Unaudited) 2017 2016
Shareholders’ Equity Excluding Net Unrealized Gains on Fixed Maturities $ 1,845.3 $ 1,794.6
Net Unrealized Gains on Fixed Maturities 237.1   180.6
Shareholders’ Equity $ 2,082.4   $ 1,975.2
 

Underlying Combined Ratio

Underlying Combined Ratio is a non-GAAP financial measure that is computed by adding the current year non-catastrophe losses and LAE ratio with the insurance expense ratio. The most directly comparable GAAP financial measure is the combined ratio, which is computed by adding total incurred losses and LAE, including the impact of catastrophe losses and loss and LAE reserve development from prior years, with the insurance expense ratio. Kemper believes the underlying combined ratio is useful to investors and is used by management to reveal the trends in Kemper’s property and casualty insurance businesses that may be obscured by catastrophe losses and prior-year reserve development. These catastrophe losses may cause loss trends to vary significantly between periods as a result of their incidence of occurrence and magnitude, and can have a significant impact on incurred losses and LAE and the combined ratio. Prior-year reserve development is caused by unexpected loss development on historical reserves. Because reserve development relates to the re-estimation of losses from earlier periods, it has no bearing on the performance of the company’s insurance products in the current period. Kemper believes it is useful for investors to evaluate these components separately and in the aggregate when reviewing its underwriting performance. The underlying combined ratio should not be considered a substitute for the combined ratio and does not reflect the overall underwriting profitability of our business.

Conference Call

Kemper will discuss its third quarter 2017 results in a conference call on Monday, October 30, at 4 p.m. Eastern (3 p.m. Central) Time. Kemper’s conference call will be accessible via the internet and by telephone. The phone number for Kemper’s conference call is 844.826.3041. To listen via webcast, register online at the investor section of kemper.com at least 15 minutes prior to the webcast to download and install any necessary software.

A replay of the call will be available online at the investor section of kemper.com.

More detailed financial information can be found in Kemper’s Investor Financial Supplement and Earnings Call Presentation for the third quarter of 2017, which is available at the investor section of kemper.com.

About Kemper

The Kemper family of companies is one of the nation’s leading insurers. With $8 billion in assets, Kemper is improving the world of insurance by offering personalized solutions for individuals, families and businesses. Kemper's businesses collectively:

  • Offer insurance for home, auto, life, health and valuables
  • Service six million policies
  • Are represented by more than 20,000 independent agents and brokers
  • Employ 5,750 associates dedicated to providing exceptional service
  • Are licensed to sell insurance in 50 states and the District of Columbia

Learn more about Kemper.

Caution Regarding Forward-Looking Statements

This press release 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 that they relate to future actions, performance or results rather than strictly to historical or current facts.

Any or all forward-looking statements may turn out to be wrong, and, accordingly, readers are cautioned not to place undue reliance on such statements, which speak only as of the date of this press release. Forward-looking statements involve a number of risks and uncertainties that are difficult to predict, and are not guarantees of future performance. Among the general factors that could cause actual results and financial condition to differ materially from estimated results and financial condition are those listed in periodic reports filed by Kemper with the Securities and Exchange Commission (the “SEC”). No assurances can be given that the results and financial condition contemplated in any forward-looking statements will be achieved or will be achieved in any particular timetable. Kemper assumes no obligation to publicly correct or update any forward-looking statements as a result of events or developments subsequent to the date of this press release. The reader is advised, however, to consult any further disclosures Kemper makes on related subjects in its filings with the SEC.