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 (losses) 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. 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 months and year ended December 31, 2012 and 2011 is presented below:
Three Months Ended Year Ended
(Dollars in Millions) (Unaudited) Dec 31,2012   Dec 31,2011 Dec 31,2012   Dec 31,2011
Consolidated Net Operating Income (Loss) $ (3.4 ) $ 24.1 $ 53.8 $ 47.1
Net Income (Loss) From:
Net Realized Gains on Sales of Investments 3.6 3.9 42.5 21.9
Net Impairment Losses Recognized in Earnings (1.9 ) (3.0 ) (4.5 ) (7.3 )
Income (Loss) from Continuing Operations $ (1.7 ) $ 25.0   $ 91.8   $ 61.7  

Consolidated Net Operating Income (Loss) Per Unrestricted Share

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

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