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v3.23.3

Business Segments | 9 Months Ended
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Sep. 30, 2023
Segment Reporting [Abstract] |
Business Segments | Business SegmentsIn the third quarter of 2023, the Company announced that it will exit the Preferred Property and Casualty Insurance business and will actively reduce the business beginning in third quarter 2023, with all policies being non-renewed or canceled in accordance with applicable state regulations. In connection with the exit, the Company changed its segment measure of performance to exclude the results of the Preferred Property and Casualty Insurance business from Segment Adjusted Net Operating Loss effective July 1, 2023, since the results are irrelevant to ongoing operations of the Company and do not qualify for Discontinued Operations under U.S. GAAP. The results of this business, previously reported as a reportable segment, are Note 5 - Business Segments (Continued) now reflected as Non-Core Operations and presented as a reconciling item between Segment Adjusted Operating Net Loss and Net Loss. Prior period amounts have been recast to reflect the change in reportable segments and the segment measure of performance. As of September 30, 2023, the Company principally conducts its operations through two segments: Specialty Property & Casualty Insurance and Life Insurance. The Specialty Property & Casualty Insurance segment’s principal products are specialty and commercial automobile insurance. These products are distributed primarily through independent agents and brokers. The Life Insurance segment’s principal products are individual life, accident, supplemental health and property insurance. Career agents employed by the Company distribute these products. This segment has historically been referred to as “Life & Health Insurance.” The results of the segment are unchanged. Corporate and Other operations include interest expense, board of director fees, and general corporate expenses incurred by the Company which are not allocated to other businesses. Segment Adjusted Operating (Loss) Income The Company analyzes the operating performance of each segment using segment adjusted operating (loss) income. Segment adjusted operating (loss) income does not equate to “loss before income taxes” or “net loss” as determined in accordance with U.S. GAAP but is the measure of segment profit or loss used by the Company’s Chief Operating Decision Maker (“CODM”) to evaluate segment performance and allocate resources, and consistent with authoritative guidance, is the measure of segment performance presented below. Segment adjusted operating (loss) income is calculated by adjusting each segment’s loss before income taxes for the following items: (i) Income (Loss) from Change in Fair Value of Equity and Convertible Securities; (ii) Net Realized Investment (Losses) Gains; (iii) Impairment Gains (Losses); (iv) Acquisition and Disposition Related Transaction, Integration, Restructuring and Other Costs; (v) Debt Extinguishment, Pension Settlement and Other Charges; (vi) Goodwill Impairment Charge; (vii) Non-Core Operations; and (viii) Significant non-recurring or infrequent items that may not be indicative of ongoing operations These items are important to an understanding of overall results of operations. Segment adjusted operating (loss) income is not a substitute for income determined in accordance w ith U.S. GAAP, and the Company’s definition of segment adjusted operating (loss) income may differ from that used by other companies. The Company, however, believes that the presentation of segment adjusted consolidated operating (loss) income as measured for management purposes enhances the understanding of results of operations by highlighting the results from ongoing operations and the underlying profitability factors of its businesses. Note 5 - Business Segments (Continued) Earned Premiums by product line, including a reconciliation to Total Earned Premiums, for the nine and three months ended September 30, 2023 and 2022 were:
|  | Nine Months Ended |  |  | Three Months Ended
(Dollars in Millions) |  | Sep 30, 2023 |  | Sep 30, 2022 |  |  | Sep 30, 2023 |  | Sep 30, 2022
Specialty Property & Casualty Insurance: |  |  |  |  |  |  |  |  |
Personal Automobile |  | $ | 2,278.5 |  |  | $ | 2,666.3 |  |  |  | $ | 724.0 |  |  | $ | 858.8 |
Commercial Automobile |  | 488.4 |  |  | 398.5 |  |  |  | 166.4 |  |  | 140.7 |
Life Insurance: |  |  |  |  |  |  |  |  |
Life |  | 251.9 |  |  | 253.8 |  |  |  | 84.9 |  |  | 84.3 |
Accident and Health |  | 17.5 |  |  | 136.8 |  |  |  | 5.8 |  |  | 45.9 |
Property |  | 34.2 |  |  | 38.3 |  |  |  | 11.4 |  |  | 11.9 |
Total Segment Earned Premiums |  | $ | 3,070.5 |  |  | $ | 3,493.7 |  |  |  | $ | 992.5 |  |  | $ | 1,141.6 |
Non-Core Operations |  | 395.1 |  |  | 454.8 |  |  |  | 125.3 |  |  | 149.3 |
Total Earned Premiums |  | $ | 3,465.6 |  |  | $ | 3,948.5 |  |  |  | $ | 1,117.8 |  |  | $ | 1,290.9 |
Segment Revenues, including a reconciliation to Total Revenues, for the nine and three months ended September 30, 2023 and 2022 were:
|  | Nine Months Ended |  |  | Three Months Ended
(Dollars in Millions) |  | Sep 30, 2023 |  | Sep 30, 2022 |  |  | Sep 30, 2023 |  | Sep 30, 2022
Segment Revenues: |  |  |  |  |  |  |  |  |
Specialty Property & Casualty Insurance: |  |  |  |  |  |  |  |  |
Earned Premiums |  | $ | 2,766.9 |  |  | $ | 3,064.8 |  |  |  | $ | 890.4 |  |  | $ | 999.5 |
Net Investment Income |  | 125.7 |  |  | 102.8 |  |  |  | 42.7 |  |  | 33.9 |
Change in Value of Alternative Energy Partnership Investments |  | 1.3 |  |  | (10.6) |  |  |  | 0.5 |  |  | 0.3 |
Other Income |  | 3.2 |  |  | 5.0 |  |  |  | 1.6 |  |  | 2.3 |
Total Specialty Property & Casualty Insurance |  | 2,897.1 |  |  | 3,162.0 |  |  |  | 935.2 |  |  | 1,036.0 |
Life Insurance: |  |  |  |  |  |  |  |  |
Earned Premiums |  | 303.6 |  |  | 428.9 |  |  |  | 102.1 |  |  | 142.1 |
Net Investment Income |  | 146.3 |  |  | 163.9 |  |  |  | 49.4 |  |  | 52.6 |
Change in Value of Alternative Energy Partnership Investments |  | 0.6 |  |  | (5.6) |  |  |  | 0.2 |  |  | 0.1 |
Other (Loss) Income |  | (0.4) |  |  | (0.8) |  |  |  | (0.1) |  |  | — |
Total Life Insurance |  | 450.1 |  |  | 586.4 |  |  |  | 151.6 |  |  | 194.8 |
Total Segment Revenues |  | 3,347.2 |  |  | 3,748.4 |  |  |  | 1,086.8 |  |  | 1,230.8 |
Income (Loss) from Change in Fair Value of Equity and Convertible Securities |  | 6.9 |  |  | (79.9) |  |  |  | 2.8 |  |  | (11.2) |
Net Realized Investment (Losses) Gains |  | (38.3) |  |  | 0.4 |  |  |  | (30.3) |  |  | (12.1) |
Net Impairment Gains (Losses) Recognized in Earnings |  | 0.1 |  |  | (22.1) |  |  |  | (1.1) |  |  | (8.3) |
Non-Core Operations |  | 431.7 |  |  | 486.0 |  |  |  | 138.0 |  |  | 161.1 |
Other |  | 9.4 |  |  | 16.5 |  |  |  | 3.2 |  |  | 1.2 |
Total Revenues |  | $ | 3,757.0 |  |  | $ | 4,149.3 |  |  |  | $ | 1,199.4 |  |  | $ | 1,361.5 |
Note 5 - Business Segments (Continued) Adjusted Consolidated Operating (Loss) Income, including a reconciliation to Loss before Income Taxes, for the nine and three months ended September 30, 2023 and 2022 was:
|  | Nine Months Ended |  |  | Three Months Ended
(Dollars in Millions) |  | Sep 30, 2023 |  | Sep 30, 2022 |  |  | Sep 30, 2023 |  | Sep 30, 2022
Segment Adjusted Operating (Loss) Income: |  |  |  |  |  |  |  |  |
Specialty Property & Casualty Insurance |  | $ | (132.9) |  |  | $ | (150.4) |  |  |  | $ | (43.2) |  |  | $ | (39.2) |
Life Insurance |  | 42.4 |  |  | 51.5 |  |  |  | 17.5 |  |  | 15.6 |
Total Segment Adjusted Operating Loss |  | (90.5) |  |  | (98.9) |  |  |  | (25.7) |  |  | (23.6) |
Corporate and Other Adjusted Operating Loss From: |  |  |  |  |  |  |  |  |
Other |  | (41.5) |  |  | (32.2) |  |  |  | (13.3) |  |  | (16.6) |
Corporate and Other Adjusted Operating Loss |  | (41.5) |  |  | (32.2) |  |  |  | (13.3) |  |  | (16.6) |
Adjusted Consolidated Operating Loss |  | (132.0) |  |  | (131.1) |  |  |  | (39.0) |  |  | (40.2) |
Income (Loss) from Change in Fair Value of Equity and Convertible Securities |  | 6.9 |  |  | (79.9) |  |  |  | 2.8 |  |  | (11.2) |
Net Realized Investment (Losses) Gains |  | (38.3) |  |  | 0.4 |  |  |  | (30.3) |  |  | (12.1) |
Impairment Gains (Losses) |  | 0.1 |  |  | (22.1) |  |  |  | (1.1) |  |  | (8.3) |
Acquisition and Disposition Related Transaction, Integration, Restructuring and Other Costs |  | (101.9) |  |  | (27.3) |  |  |  | (43.3) |  |  | (12.7) |
Debt Extinguishment, Pension Settlement and Other Charges |  | (70.2) |  |  | (3.7) |  |  |  | (70.2) |  |  | — |
Goodwill Impairment Charge |  | (49.6) |  |  | — |  |  |  | — |  |  | — |
Non-Core Operations |  | (25.5) |  |  | (34.4) |  |  |  | (9.6) |  |  | (3.3) |
Loss before Income Taxes attributable to Kemper Corporation |  | $ | (410.5) |  |  | $ | (298.1) |  |  |  | $ | (190.7) |  |  | $ | (87.8) |
Loss before Income Taxes Noncontrolling Interest |  | (0.1) |  |  | — |  |  |  | (0.1) |  |  | — |
Loss before Income Taxes |  | $ | (410.6) |  |  | $ | (298.1) |  |  |  | $ | (190.8) |  |  | $ | (87.8) |
Note 5 - Business Segments (Continued) Adjusted Consolidated Net Operating Loss, including a reconciliation to Net Loss, for the nine and three months ended September 30, 2023 and 2022 was:
|  | Nine Months Ended |  |  | Three Months Ended
(Dollars in Millions and Net of Income Taxes) |  | Sep 30, 2023 |  | Sep 30, 2022 |  |  | Sep 30, 2023 |  | Sep 30, 2022
Segment Adjusted Net Operating (Loss) Income: |  |  |  |  |  |  |  |  |
Specialty Property & Casualty Insurance |  | $ | (102.4) |  |  | $ | (112.3) |  |  |  | $ | (33.2) |  |  | $ | (28.7) |
Life Insurance |  | 36.8 |  |  | 45.8 |  |  |  | 14.7 |  |  | 14.0 |
Total Segment Adjusted Net Operating Loss |  | (65.6) |  |  | (66.5) |  |  |  | (18.5) |  |  | (14.7) |
Corporate and Other Adjusted Net Operating Loss From: |  |  |  |  |  |  |  |  |
Other |  | (32.2) |  |  | (26.4) |  |  |  | (9.4) |  |  | (12.3) |
Total Corporate and Other Adjusted Net Operating Loss |  | (32.2) |  |  | (26.4) |  |  |  | (9.4) |  |  | (12.3) |
Adjusted Consolidated Net Operating Loss |  | (97.8) |  |  | (92.9) |  |  |  | (27.9) |  |  | (27.0) |
Net Income (Loss) From: |  |  |  |  |  |  |  |  |
Change in Fair Value of Equity and Convertible Securities |  | 5.5 |  |  | (63.1) |  |  |  | 2.3 |  |  | (8.8) |
Net Realized Investment (Losses) Gains |  | (30.3) |  |  | 0.3 |  |  |  | (22.9) |  |  | (9.6) |
Impairment Gains (Losses) |  | 0.1 |  |  | (17.5) |  |  |  | (0.8) |  |  | (6.6) |
Acquisition and Disposition Related Transaction, Integration, Restructuring and Other Costs |  | (80.5) |  |  | (32.2) |  |  |  | (34.2) |  |  | (20.7) |
Debt Extinguishment, Pension Settlement and Other Charges |  | (55.5) |  |  | (2.9) |  |  |  | (55.5) |  |  | — |
Goodwill Impairment Charge |  | (45.5) |  |  | — |  |  |  | — |  |  | — |
Non-Core Operations |  | (19.5) |  |  | (25.0) |  |  |  | (7.3) |  |  | (2.1) |
Net Loss attributable to Kemper Corporation |  | $ | (323.5) |  |  | $ | (233.3) |  |  |  | $ | (146.3) |  |  | $ | (74.8) |
Net Loss Noncontrolling Interest |  | (0.1) |  |  | — |  |  |  | (0.1) |  |  | — |
Net Loss |  | $ | (323.6) |  |  | $ | (233.3) |  |  |  | $ | (146.4) |  |  | $ | (74.8) |

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 22 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-22 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-15 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 31 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-31 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 42 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-42 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 40 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-40 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//280/tableOfContent Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 26 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-26 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 34 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-34 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 41 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-41 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-21 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-21 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 + Details
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