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v3.23.2

Basis of Presentation and Accounting Policies (Tables) | 6 Months Ended
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Jun. 30, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract] |
Accounting Standards Update and Change in Accounting Principle | The table below presents the transition adjustment for the adoption of ASU 2018-12:
|  | Pre-Adoption Balance 12/31/2020 |  | Adjustments to AOCI |  | Adjustments to Retained Earnings |  | Post- Adoption Balance 1/1/2021
Retained Earnings |  | $ | 2,071.2 |  |  | — |  |  | (25.1) |  |  | $ | 2,046.1 |
AOCI |  | $ | 680.5 |  |  | (1,030.3) |  |  | — |  |  | $ | (349.8) |
Note 1 - Basis of Presentation and Accounting Policies (Continued) For the liability for future policyholder benefits, the net transition adjustment is related to the difference in the historical discount rates used pre-transition and the discount rate at December 31, 2020. At transition, there were no adjustments related to premium deficiencies, as the balance is only applicable to Kemper’s universal life contracts which are stated at account value. The effects of adoption of ASU 2018-12 on the Condensed Consolidated Statement of Loss for the six months ended June 30, 2022 were as follows:
|  | Prior to Adoption |  | Effect of Adoption |  | Post- Adoption Balance
Earned Premiums |  | $ | 2,692.3 |  |  | (34.7) |  |  | $ | 2,657.6 |
Policyholders’ Benefits and Incurred Losses and Loss Adjustment Expenses |  | $ | 2,323.7 |  |  | (49.4) |  |  | $ | 2,274.3 |
Insurance Expenses |  | $ | 611.7 |  |  | 0.8 |  |  | $ | 612.5 |
Income Tax Benefit |  | $ | 54.7 |  |  | (2.9) |  |  | $ | 51.8 |
Net Loss |  | $ | (169.5) |  |  | 11.0 |  |  | $ | (158.5) |
Net Loss Per Unrestricted Share: |  |  |  |  |  |
Basic |  | $ | (2.66) |  |  | $ | 0.17 |  |  | $ | (2.49) |
Diluted |  | $ | (2.66) |  |  | $ | 0.17 |  |  | $ | (2.49) |
The effects of adoption of ASU 2018-12 on the Condensed Consolidated Statement of Loss for the three months ended June 30, 2022 were as follows:
|  | Prior to Adoption |  | Effect of Adoption |  | Post- Adoption Balance
Earned Premiums |  | $ | 1,353.7 |  |  | (16.1) |  |  | $ | 1,337.6 |
Policyholders’ Benefits and Incurred Losses and Loss Adjustment Expenses |  | $ | 1,170.3 |  |  | (19.2) |  |  | $ | 1,151.1 |
Insurance Expenses |  | $ | 307.7 |  |  | — |  |  | $ | 307.7 |
Income Tax Benefit |  | $ | 23.0 |  |  | (0.6) |  |  | $ | 22.4 |
Net Loss |  | $ | (74.7) |  |  | 2.5 |  |  | $ | (72.2) |
Net Loss Per Unrestricted Share: |  |  |  |  |  |
Basic |  | $ | (1.17) |  |  | $ | 0.04 |  |  | $ | (1.13) |
Diluted |  | $ | (1.17) |  |  | $ | 0.04 |  |  | $ | (1.13) |
The effects of adoption of ASU 2018-12 on the Condensed Consolidated Balance Sheet as of December 31, 2022 were as follows:
|  | Prior to Adoption |  | Effect of Adoption |  | Post- Adoption Balance
Deferred Policy Acquisition Costs |  | $ | 625.6 |  |  | 10.0 |  |  | $ | 635.6 |
Deferred Income Tax Assets |  | $ | 189.4 |  |  | (60.4) |  |  | $ | 129.0 |
Total Assets |  | $ | 13,364.0 |  |  | (50.4) |  |  | $ | 13,313.6 |
Life and Health Insurance Reserves |  | $ | 3,554.0 |  |  | (277.8) |  |  | $ | 3,276.2 |
Total Liabilities |  | $ | 10,920.8 |  |  | (277.8) |  |  | $ | 10,643.0 |
Retained Earnings |  | $ | 1,380.1 |  |  | (13.7) |  |  | $ | 1,366.4 |
Accumulated Other Comprehensive Loss |  | $ | (756.0) |  |  | 241.1 |  |  | $ | (514.9) |
Total Shareholders’ Equity |  | $ | 2,443.2 |  |  | 227.4 |  |  | $ | 2,670.6 |
Note 1 - Basis of Presentation and Accounting Policies (Continued) The effects of adoption of ASU 2018-12 on the Condensed Consolidated Statement of Comprehensive Loss for the six months ended June 30, 2022 were as follows:
|  | Prior to Adoption |  | Effect of Adoption |  | Post- Adoption Balance
Change in Discount Rate on Future Life Policyholder Benefits |  | $ | — |  |  | 1,090.0 |  |  | $ | 1,090.0 |
Other Comprehensive Loss Before Income Taxes |  | $ | (1,226.4) |  |  | 1,090.0 |  |  | $ | (136.4) |
Other Comprehensive Income Tax Benefit |  | $ | 257.5 |  |  | (228.9) |  |  | $ | 28.6 |
Other Comprehensive Loss, Net of Taxes |  | $ | (968.9) |  |  | 861.1 |  |  | $ | (107.8) |
Total Comprehensive Loss |  | $ | (1,138.4) |  |  | 872.1 |  |  | $ | (266.3) |
The effects of adoption of ASU 2018-12 on the Condensed Consolidated Statement of Comprehensive Loss for the three months ended June 30, 2022 were as follows:
|  | Prior to Adoption |  | Effect of Adoption |  | Post- Adoption Balance
Change in Discount Rate on Future Life Policyholder Benefits |  | $ | — |  |  | 527.7 |  |  | $ | 527.7 |
Other Comprehensive Loss Before Income Taxes |  | $ | (580.4) |  |  | 527.7 |  |  | $ | (52.7) |
Other Comprehensive Income Tax Benefit |  | $ | 121.9 |  |  | (110.8) |  |  | $ | 11.1 |
Other Comprehensive Loss, Net of Taxes |  | $ | (458.5) |  |  | 416.9 |  |  | $ | (41.6) |
Total Comprehensive Loss |  | $ | (533.2) |  |  | 419.4 |  |  | $ | (113.8) |
The effects of adoption of ASU 2018-12 on the Condensed Consolidated Statement of Cash Flows for the six months ended June 30, 2022 were as follows:
|  | Prior to Adoption |  | Effect of Adoption |  | Post- Adoption Balance
Cash Flows from Operating Activities: |  |  |  |  |  |
Net Loss |  | $ | (169.5) |  |  | 11.0 |  |  | $ | (158.5) |
Change in Deferred Policy Acquisition Costs |  | $ | (2.9) |  |  | 0.8 |  |  | $ | (2.1) |
Change in Insurance Reserves |  | $ | 12.9 |  |  | (14.7) |  |  | $ | (1.8) |
Change in Income Taxes |  | $ | (49.1) |  |  | 2.9 |  |  | $ | (46.2) |
Net Cash Used in Operating Activities |  | $ | (90.0) |  |  | — |  |  | $ | (90.0) |

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