On May 7, 2025 (“2023 A&R Omnibus Plan Effective Date”), Kemper’s shareholders approved the Second Amended and Restated Kemper Corporation 2023 Omnibus Equity Plan (“2023 A&R Omnibus Plan”). The maximum number of shares of Kemper common stock authorized for issuance under the 2023 A&R Omnibus Plan is (i) 3,275,000 shares less (ii) one (1) share for every one (1) share granted after February 15, 2025 and prior to the 2023 A&R Omnibus Plan Effective Date (the “Share Authorization”). Since May 3, 2023, no new awards have been granted under the 2020 Omnibus Equity Plan (“2020 Omnibus Plan”) that had been approved by Kemper’s Shareholders on May 6, 2020, but awards previously granted under the 2020 Omnibus Plan remain outstanding in accordance with their original terms. As of December 31, 2025, there were 2,411,430 common shares available for future grants, subject to adjustment in accordance with the plans’ terms and the respective grant agreements.

Outstanding equity-based compensation awards as of December 31, 2025 consisted of time-based Restricted Stock Units that typically vest over three years (“RSU”), stock option and stock appreciation rights (“Tandem Awards”), PSUs and Deferred Stock Units (“DSUs”) that were previously granted to Kemper’s Non-employee Directors under the 2011 Omnibus Equity Plan. In 2024, grants were made of RSUs that had performance vesting conditions (“pRSUs”). Unless otherwise specified in this Note 21, references to RSUs include pRSUs. RSUs, PSUs and DSUs give the recipient the right to receive one share of Kemper common stock for each RSU, PSU or DSU issued. Recipients of DSUs received full dividend equivalents on the same basis as all other outstanding shares of Kemper common stock, but do not receive voting rights until such shares are issued.

For grants under the 2023 A&R Omnibus Plan and the 2020 Omnibus Plan, recipients of RSUs and PSUs receive dividend equivalents on the same basis as all other outstanding shares of Kemper common stock only if, to the extent, and at the time that they vest and on subsequent dividend payment dates after they vest until the awards are settled, and do not receive voting rights until such shares are issued. For awards subject to a performance condition, the Company recognizes compensation expense based upon the probable outcome of the performance condition. The estimate is revised if the actual number of PSUs expected to vest is likely to differ from the previous estimate. Compensation expense for awards is recognized on a straight-line basis over the requisite service period. For equity-based compensation awards with a graded vesting schedule, the Company recognizes compensation expense on a straight-line basis over the requisite service period for each separately-vesting portion of the awards as if each award were, in substance, multiple awards. Compensation expense is recognized only for those awards expected to vest, with forfeitures estimated at the date of grant based on the Company’s historical experience and future expectations . Equity-based compensation expense was $29.4 million, $29.2 million and $29.0 million for the years ended December 31, 2025, 2024 and 2023, respectively. Total unamortized compensation expense related to unvested awards at December 31, 2025 was $24.2 million, which is expected to be recognized over the next three years ending December 31, 2026, 2027 and 2028.

The Human Resources and Compensation Committee of the Board of Directors, or, in limited circumstances, the Interim CEO as the Board’s authorized designee, has sole discretion to determine the persons to whom awards under the 2023 A&R Omnibus Plan are granted, and the material terms of the awards. For Tandem Awards, material terms include the number of shares covered by such awards and the exercise price, vesting and expiration dates of such awards. Tandem Awards are non-transferable. The exercise price of Tandem Awards is the fair value of Kemper’s common stock on the date of grant. Tandem Awards and RSU awards granted to employees generally vest in three equal annual installments over a period of three years, with the Tandem Awards expiring ten years from the date of grant. Employee PSU awards generally vest over a period of three years, subject to performance results and other restrictions. pRSU awards vest in three equal installments on the first three anniversaries of the grant date, assuming performance conditions are satisfied prior to each vesting date and that the executive remains employed by the Company. The performance conditions are measured using full-year 2024 results and full-year 2025 results.

Under the Non-employee Director compensation program in effect for 2025, each Non-employee Director elected at the 2025 annual shareholder meeting received an annual RSU award with an aggregate grant date fair value of $150,000 (“Director RSUs”) at the conclusion of the meeting, and new Non-employee Directors who joined the Board received an initial award of Director RSUs valued at the percentage of the full grant date fair value of $150,000 that represents the number of quarterly

Board meetings the new director was expected to attend during the remaining portion of the then-current annual compensation period that ends on the date of the next annual shareholder meeting. The Director RSUs vest over a period of one year, enable the award holder to make an election to defer the conversion to shares of common stock in accordance with applicable deferral rules, and include the right to receive dividend equivalents on the same basis as all other outstanding shares of Kemper common stock only if, to the extent, and at the time that they vest and on subsequent dividend payment dates after they vest until the awards are settled. Each Non-employee Director elected at the 2024 annual shareholder meeting received an annual Director RSU award with an aggregate grant date fair value of $150,000 at the conclusion of the meeting, and, each Non-employee Director elected at the 2023 annual shareholder meeting received an annual Director RSU award with an aggregate grant date fair value of $130,000 at the conclusion of the meeting, under the Non-employee Director compensation program in effect for the applicable year.

The Company uses the Black-Scholes option pricing model to estimate the fair value of each Tandem Award on the date of grant. The expected terms of Tandem Awards are developed by considering the Company’s historical Tandem Award exercise experience, demographic profiles, historical share retention practices of employees and assumptions about their propensity for early exercise in the future. Expected volatility is estimated using weekly historical volatility over the estimated life of each tranche of the award. The Company believes that historical volatility is currently the best estimate of expected volatility. The dividend yield in 2025, 2024 and 2023 was calculated by taking the natural logarithm of the annualized yield divided by the


	Shares Subject to Awards	Weighted- average Exercise Price Per Share ($)		Weighted- average Remaining Contractual Life (in Years)	Aggregate Intrinsic Value ($ In Millions)
Outstanding at Beginning of the Year	2,355,780	$	58.62
Granted	188,438	65.67
Exercised	(254,306)	37.33
Forfeited or Expired	(81,195)	71.03
Outstanding at December 31, 2025	2,208,717	$	61.22	4.18	$	0.5
Vested and Expected to Vest at December 31, 2025	2,201,375	$	61.23	4.17	$	0.5
Exercisable at December 31, 2025	1,816,368	$	61.14	3.26	$	0.5

The weighted-average grant-date fair values of Tandem Awards granted during 2025, 2024 and 2023 were $21.44, $18.80 and $18.85, respectively. Total intrinsic value of Tandem Awards exercised was $3.6 million, $0.9 million and $0.6 million for the years ended December 31, 2025, 2024 and 2023, respectively. Cash received from exercises of Tandem Awards was $9.5 million, $4.7 million and $1.9 million for the years ended December 31, 2025, 2024 and 2023, respectively. Total tax benefit realized for tax deductions from exercises of Tandem Awards was $0.8 million, $0.2 million and $0.1 million for the years ended December 31, 2025, 2024 and 2023, respectively.


				Outstanding				Exercisable
Range of Exercise Prices ($)				Shares Subject to Awards	Weighted- average Exercise Price Per Share ($)		Weighted- average Remaining Contractual Life (in Years)	Shares Subject to Awards	Weighted- average Exercise Price Per Share ($)

$	20.01	-	30.00	7,496	$	27.71	0.16	7,496	$	27.71
30.01		-	40.00	43,219	31.01		0.34	43,219	31.01
40.01		-	50.00	225,128	43.49		0.74	221,765	43.43
50.01		-	60.00	1,023,331	56.58		5.49	817,045	56.21
60.01		-	70.00	427,580	67.71		5.66	244,880	69.08
70.01		-	80.00	465,549	76.59		2.06	465,549	76.59
80.01		-	90.00	16,414	83.86		3.18	16,414	83.86



20.01		-	90.00	2,208,717	61.22		4.18	1,816,368	61.14

The initial number of PSUs awarded to each participant represents the number of Kemper common shares that would vest and be issued if the performance level attained were to be at the “target” performance level. For performance above the target level, each participant would receive a grant of additional shares of stock up to a maximum of 100% of the initial number of PSUs awarded to the participant. The final payout of these awards, and any forfeitures of PSUs for performance below the “target” performance level, will be determined based on the Company’s performance. If, at the end of the applicable performance period, the Company’s performance:

The number of additional shares that would be granted if the Company were to meet or exceed the maximum performance levels related to the outstanding PSU awards for the 2025, 2024 and 2023 three-year performance periods was 176,360 common shares, 179,173 common shares and 159,035 common shares, respectively, (as “full value awards,” the equivalent of 176,360 shares, 179,173 shares, and 159,035 shares, respectively, under the Share Authorization) at December 31, 2025.

The grant date fair values of the PSU awards with a market performance condition are determined using the Monte Carlo simulation method. The Monte Carlo simulation model produces a risk-neutral simulation of the daily returns on the common stock of Kemper and each of the other companies included in the peer group. Returns generated by the simulation depend on the risk-free interest rate used and the volatilities of, and the correlation between, these stocks. The model simulates stock prices and dividend payouts to the end of the three-year performance period. Total shareholder returns are generated for each of these stocks based on the simulated prices and dividend payouts. The total shareholder returns are then ranked, and Kemper’s simulated ranking is converted to a payout percentage based on the terms of the PSU awards. The payout percentage is applied to the simulated stock price at the end of the performance period, reinvested dividends are added back, and the total is

Sixty-seven percent of the PSU awards granted to employees in 2024 and sixty-seven percent of the PSU awards granted to employees in 2023 are measured using a market performance condition. Fair value for these awards was estimated using the Monte Carlo simulation method described above. Final payout for these awards, and any forfeitures of units for performance below the “target” performance level, will be based on Kemper’s total shareholder return, relative to a peer group comprised of all the companies in the S&P Supercomposite Insurance Index, over a three-year performance period. The three-year performance periods for the 2025, 2024 and 2023 awards end on January 31, 2027, January 31, 2026 and January 31, 2025, respectively. Compensation cost for these awards is recognized ratably over the requisite service period. In the event that the market performance condition is not satisfied, previously recognized compensation cost would not reverse, but it would reverse if the requisite service period is not met.

Beginning in 2025, sixty-seven percent of the PSU awards granted to employees are measured using a combination of a Company-specific metric and a market performance condition. Final payout for these awards, and any forfeitures of shares for performance below the “target” performance level, will be determined based on Kemper’s adjusted book value per share growth and Kemper’s total shareholder return, relative to a peer group comprised of all the companies in the S&P Supercomposite Insurance Index over a three-year performance period. The three-year performance periods for the 2025 awards end on December 31, 2027. Fair value for these awards was determined using both the closing price of Kemper common stock on the date of grant and the Monte Carlo Simulation method described above. Accruals of compensation cost for these awards are estimated based on the probable outcome of the performance condition.

Thirty-three percent of the PSU awards granted to employees in 2025, thirty-three percent of the PSU awards granted to employees in 2024 and thirty-three percent of the PSU awards granted to employees in 2023 are measured solely using a Company-specific metric. Final payout for these awards, and any forfeitures of shares for performance below the “target” performance level, will be determined based on Kemper’s adjusted return on equity over a three-year performance period. The three-year performance periods for the 2025, 2024 and 2023 awards end on December 31, 2027, December 31, 2026 and December 31, 2025, respectively. Fair value for these awards was determined using the closing price of Kemper common stock on the date of grant. Accruals of compensation cost for these awards are estimated based on the probable outcome of the performance condition.

The total fair value of RSUs and PSUs that vested during the year ended December 31, 2025 was $16.0 million. The tax benefits for tax deductions realized from such awards was $3.4 million. The total fair value of RSUs and PSUs that vested during the year ended December 31, 2024 was $21.7 million. The tax benefits for tax deductions realized from such awards was $4.5 million. The total fair value of RSUs and PSUs that vested during the year ended December 31, 2023 was $5.2 million. The tax benefits for tax deductions realized from such awards was $1.1 million.

The grant-date fair values of DSU awards issued under the 2011 Omnibus Plan granted to Non-employee Directors were determined using the closing price of Kemper common stock on the date of grant. Beginning in 2019 DSU awards are no longer issued to Non-employee Directors. All previously granted shares had vested upon issuance and as such, no DSUs vested during the years ended December 31, 2025, 2024 and 2023.