XML 72 R44.htm IDEA: XBRL DOCUMENT
v3.25.0.1

Schedule 2 - Parent Company Financial Statements | 12 Months Ended
--- | ---
Dec. 31, 2024
Condensed Financial Information Disclosure [Abstract] |
Parent Company Financial Statements | KEMPER CORPORATION PARENT COMPANY BALANCE SHEETS (Dollars in Millions)
|  | December 31,
|  | 2024 |  | 2023
ASSETS |  |  |  |
Investments in Subsidiaries |  | $ | 3,773.8 |  |  | $ | 3,594.1 |
Fixed Maturities at Fair Value (Amortized Cost: 2024 – $0.5; 2023 - $177.4) |  | 0.5 |  |  | 174.3 |
Equity Securities at Fair Value (Cost: 2024 - $12.8; 2023 - $11.6) |  | 10.9 |  |  | 9.9 |
Short-term Investments |  | 453.8 |  |  | 180.2 |
Other Investments |  | 22.2 |  |  | 18.8 |
Cash |  | 2.3 |  |  | 1.5 |
Other Receivables |  | 60.9 |  |  | 38.5 |
Current Income Taxes |  | 54.3 |  |  | 33.9 |
Right-of-Use Assets |  | 7.2 |  |  | 7.7 |
Other Assets |  | 13.1 |  |  | 32.5 |
Total Assets |  | $ | 4,399.0 |  |  | $ | 4,091.4 |
LIABILITIES AND SHAREHOLDERS’ EQUITY |  |  |  |
Senior Notes Payable, 4.350% due 2025 (Fair Value: 2024 – $448.1; 2023 – $440.8) |  | $ | 449.9 |  |  | $ | 449.6 |
Senior Notes Payable, 2.400% due 2030 (Fair Value: 2024 – $338.9; 2023 – $313.6) |  | 397.5 |  |  | 397.0 |
Senior Notes Payable, 3.800% due 2032 (Fair Value: 2024 - $352.2; 2023 - $338.4) |  | 396.5 |  |  | 396.0 |
Fixed-Rate Reset Junior Subordinated Debentures, 5.875% due 2062 (Fair Value: 2024 - $139.2; 2023 - $120.6) |  | 147.7 |  |  | 146.6 |
Deferred Income Tax Liability |  | 137.0 |  |  | 119.5 |
Liabilities for Benefit Plans |  | 32.1 |  |  | 28.1 |
Right-of-Use Liabilities |  | 21.3 |  |  | 23.3 |
Accrued Expenses and Other Liabilities |  | 28.6 |  |  | 26.3 |
Total Liabilities |  | 1,610.6 |  |  | 1,586.4 |
Shareholders’ Equity: |  |  |  |
Common Stock |  | 6.4 |  |  | 6.4 |
Additional Paid-in Capital |  | 1,854.9 |  |  | 1,845.3 |
Retained Earnings |  | 1,231.6 |  |  | 1,014.3 |
Accumulated Other Comprehensive Loss |  | (304.5) |  |  | (360.8) |
Total Shareholders’ Equity attributable to Kemper Corporation |  | 2,788.4 |  |  | 2,505.2 |
Noncontrolling Interest |  | $ | — |  |  | $ | (0.2) |
Total Shareholders’ Equity |  | 2,788.4 |  |  | 2,505.0 |
Total Liabilities and Shareholders’ Equity |  | $ | 4,399.0 |  |  | $ | 4,091.4 |
See Accompanying Report of Independent Registered Public Accounting Firm. KEMPER CORPORATION PARENT COMPANY STATEMENTS OF INCOME (LOSS) (Dollars in Millions)
|  | For the Year Ended December 31,
|  | 2024 |  | 2023 |  | 2022
Net Investment Income |  | $ | 15.9 |  |  | $ | 8.6 |  |  | $ | 16.6 |
Change in Fair Value of Equity Securities |  | (0.2) |  |  | (1.5) |  |  | (14.8) |
Net Realized Investment (Losses) Gains |  | (10.6) |  |  | (11.9) |  |  | 3.0 |
Impairment Losses |  | — |  |  | (0.4) |  |  | (0.2) |
Other Income |  | — |  |  | — |  |  | 1.1 |
Total Revenues |  | 5.1 |  |  | (5.2) |  |  | 5.7 |
Interest Expense |  | 58.1 |  |  | 56.7 |  |  | 52.6 |
Pension Settlement Expense |  | (2.6) |  |  | 70.2 |  |  | — |
Other Operating Expenses |  | 12.7 |  |  | 6.1 |  |  | 6.6 |
Total Operating Expenses |  | 68.2 |  |  | 133.0 |  |  | 59.2 |
Loss before Income Taxes and Equity in Net Income (Loss) of Subsidiaries |  | (63.1) |  |  | (138.2) |  |  | (53.5) |
Income Tax Benefit |  | (8.8) |  |  | (28.4) |  |  | (14.0) |
Loss before Equity in Net Income (Loss) of Subsidiaries |  | (54.3) |  |  | (109.8) |  |  | (39.5) |
Equity in Net Income (Loss) of Subsidiaries |  | 372.1 |  |  | (162.5) |  |  | (247.1) |
Net Income (Loss) |  | 317.8 |  |  | (272.3) |  |  | (286.6) |
Less: Net Loss attributable to Noncontrolling Interest |  | — |  |  | (0.2) |  |  | — |
Net Income (Loss) attributable to Kemper Corporation |  | $ | 317.8 |  |  | $ | (272.1) |  |  | $ | (286.6) |
See Accompanying Report of Independent Registered Public Accounting Firm. KEMPER CORPORATION PARENT COMPANY STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Dollars in Millions)
|  | For the Year Ended December 31,
|  | 2024 |  | 2023 |  | 2022
Net Income (Loss) |  | $ | 317.8 |  |  | $ | (272.3) |  |  | $ | (286.6) |
Other Comprehensive Income (Loss): |  |  |  |  |  |
Changes in Net Unrealized Gains (Losses) on Investment Securities: |  |  |  |  |  |
Having No Credit Losses Recognized in Consolidated Statements of Loss: |  |  |  |  |  |
Securities Held by Subsidiaries |  | (210.5) |  |  | 235.0 |  |  | (1,535.7) |
Securities Held by Parent |  | 0.6 |  |  | (0.6) |  |  | (2.6) |
Having Credit Losses Recognized in Consolidated Statements of Loss: |  |  |  |  |  |
Securities Held by Subsidiaries |  | (0.6) |  |  | (0.5) |  |  | 1.9 |
Reclassification Adjustment for Securities Having No Credit Losses Included in Net Loss: |  |  |  |  |  |
Securities Held by Subsidiaries |  | 8.8 |  |  | 4.5 |  |  | (12.8) |
Securities Held by Parent |  | 2.4 |  |  | (0.1) |  |  | — |
Reclassification Adjustment for Securities Having Credit Losses Included in Net Loss: |  |  |  |  |  |
Securities Held by Subsidiaries |  | (0.7) |  |  | — |  |  | — |
Unrecognized Postretirement Benefit Costs Arising During the Year: |  |  |  |  |  |
Subsidiaries |  | 0.5 |  |  | 0.1 |  |  | 1.1 |
Parent |  | 1.3 |  |  | (7.4) |  |  | 18.2 |
Reclassification Adjustment for Postretirement Benefit Costs Arising During the Year: |  |  |  |  |  |
Subsidiaries |  | (0.3) |  |  | (0.3) |  |  | — |
Parent |  | (2.8) |  |  | 66.8 |  |  | (0.4) |
Unrecognized Gain (Loss) on Cash Flow Hedges Arising During the Year: |  |  |  |  |  |
Subsidiaries |  | (6.3) |  |  | — |  |  | — |
Reclassification Adjustment for Gain (Loss) on Cash Flow Hedges Arising During the Year: |  |  |  |  |  |
Parent |  | 0.9 |  |  | (0.2) |  |  | 5.9 |
Change in Discount Rate on Future Life Policyholder Benefits |  | 278.0 |  |  | (101.7) |  |  | 1,380.7 |
Other Comprehensive Income (Loss) Before Income Taxes |  | 71.3 |  |  | 195.6 |  |  | (143.7) |
Income Tax Expense (Benefit): |  |  |  |  |  |
Changes in Net Unrealized (Losses) Gains on Investment Securities: |  |  |  |  |  |
Having No Credit Losses Recognized in Consolidated Statements of Loss: |  |  |  |  |  |
Securities Held by Subsidiaries |  | (44.2) |  |  | 49.5 |  |  | (322.7) |
Securities Held by Parent |  | 0.1 |  |  | (0.1) |  |  | (0.5) |
Having Credit Losses Recognized in Consolidated Statements of Loss: |  |  |  |  |  |
Securities Held by Subsidiaries |  | (0.3) |  |  | (0.2) |  |  | 0.4 |
Reclassification Adjustment for Securities Having No Credit Losses Included in Net Loss: |  |  |  |  |  |
Securities Held by Subsidiaries |  | 1.8 |  |  | 1.0 |  |  | (2.7) |
Securities Held by Parent |  | 0.5 |  |  | (0.1) |  |  | — |
Reclassification Adjustment for Securities Having Credit Losses Included in Net Loss: |  |  |  |  |  |
Securities Held by Subsidiaries |  | (0.3) |  |  | — |  |  | — |
Unrecognized Postretirement Benefit Costs Arising During the Year: |  |  |  |  |  |
Subsidiaries |  | 0.1 |  |  | — |  |  | 0.2 |
Parent |  | 0.3 |  |  | (1.3) |  |  | 3.9 |
Reclassification Adjustment for Postretirement Benefit Costs Arising During the Year: |  |  |  |  |  |
Subsidiaries |  | — |  |  | (0.2) |  |  | — |
Parent |  | (0.6) |  |  | 14.0 |  |  | (0.1) |
Unrecognized Gain (Loss) on Cash Flow Hedges Arising During the Year: |  |  |  |  |  |
Subsidiaries |  | (0.9) |  |  | — |  |  | — |
Reclassification Adjustment for Gain (Loss) on Cash Flow Hedges Arising During the Year: |  |  |  |  |  |
Parent |  | 0.2 |  |  | 0.1 |  |  | 1.2 |
Change in Discount Rate on Future Life Policyholder Benefits |  | 58.3 |  |  | (21.2) |  |  | 289.9 |
Income Tax Expense (Benefit) |  | 15.0 |  |  | 41.5 |  |  | (30.4) |
Other Comprehensive Income (Loss) |  | 56.3 |  |  | 154.1 |  |  | (113.3) |
Total Comprehensive Income (Loss) |  | $ | 374.1 |  |  | $ | (118.2) |  |  | $ | (399.9) |
Less: Total Comprehensive Loss attributable to Noncontrolling Interest |  | — |  |  | (0.2) |  |  | — |
Total Comprehensive Income (Loss) attributable to Kemper Corporation |  | $ | 374.1 |  |  | $ | (118.0) |  |  | $ | (399.9) |
See Accompanying Report of Independent Registered Public Accounting Firm. KEMPER CORPORATION PARENT COMPANY STATEMENTS OF CASH FLOWS (Dollars in Millions)
|  | For the Year Ended December 31,
|  | 2024 |  | 2023 |  | 2022
Operating Activities: |  |  |  |  |  |
Net Income (Loss) |  | $ | 317.8 |  |  | $ | (272.3) |  |  | $ | (286.6) |
Adjustment Required to Reconcile Net Income (Loss) to Net Cash Provided by (Used in) Operations: |  |  |  |  |  |
Equity in Net Loss (Income) of Subsidiaries |  | (372.1) |  |  | 162.5 |  |  | 247.1 |
Cash Dividends from Subsidiaries |  | 245.4 |  |  | 320.8 |  |  | 25.3 |
Net Realized Investment Losses (Gains) |  | 10.6 |  |  | 11.9 |  |  | (3.0) |
Settlement Costs Related to Defined Benefit Pension Plan |  | (2.6) |  |  | 70.2 |  |  | — |
Impairment Losses |  | — |  |  | 0.4 |  |  | 0.2 |
Income from Change in Fair Value of Equity and Convertible Securities |  | 0.2 |  |  | 1.5 |  |  | 14.8 |
Other |  | 31.9 |  |  | (30.6) |  |  | (48.9) |
Net Cash Provided by (Used in) Operating Activities |  | 231.2 |  |  | 264.4 |  |  | (51.1) |
Investing Activities: |  |  |  |  |  |
Capital Contributed to Subsidiaries |  | — |  |  | (177.5) |  |  | (537.8) |
Contribution to Non-Controlling Interest |  | (18.0) |  |  | (4.0) |  |  | — |
Proceeds from the Sales, Calls and Maturities of Fixed Maturities |  | 35.3 |  |  | 50.8 |  |  | 0.1 |
Proceeds from the Sales or Paydowns of Investments: |  |  |  |  |  |
Equity Securities |  | 2.7 |  |  | 14.8 |  |  | 71.9 |
Purchases of Investments: |  |  |  |  |  |
Fixed Maturities |  | — |  |  | — |  |  | (40.3) |
Equity Securities |  | (3.8) |  |  | (2.1) |  |  | (5.6) |
Net Sales (Purchases) of Short-term Investments |  | (126.3) |  |  | (112.2) |  |  | 138.9 |
Other |  | (0.1) |  |  | (23.2) |  |  | (3.1) |
Net Cash Used in Investing Activities |  | (110.2) |  |  | (253.4) |  |  | (375.9) |
Financing Activities: |  |  |  |  |  |
Notes Payable Proceeds: |  |  |  |  |  |
Proceeds from Issuance of 3.800% Senior Notes due February 23, 2032 |  | — |  |  | — |  |  | 396.3 |
Issuance Fees from Issuance of 3.800% Senior Notes due February 23, 2032 |  | — |  |  | — |  |  | (1.2) |
Proceeds from Issuance of 5.875% Fixed-Rate Reset Junior Subordinated Debentures due 2062 |  | — |  |  | — |  |  | 145.6 |
Issuance Fees from Issuance of 5.875% Fixed-Rate Reset Junior Subordinated Debentures due 2062 |  | — |  |  | — |  |  | (0.9) |
Proceeds from Shares Issued under Employee Stock Purchase Plan |  | 3.8 |  |  | 4.3 |  |  | 4.9 |
Common Stock Repurchases |  | (38.9) |  |  | — |  |  | — |
Dividends and Dividend Equivalents Paid |  | (80.1) |  |  | (79.6) |  |  | (79.7) |
Other |  | (5.0) |  |  | (0.5) |  |  | 0.6 |
Net Cash (Used in) Provided by Financing Activities |  | (120.2) |  |  | (75.8) |  |  | 465.6 |
Net increase (decrease) in cash |  | 0.8 |  |  | (64.8) |  |  | 38.6 |
Cash, Beginning of Year |  | 1.5 |  |  | 66.3 |  |  | 27.7 |
Cash, End of Year |  | $ | 2.3 |  |  | $ | 1.5 |  |  | $ | 66.3 |
See Accompanying Report of Independent Registered Public Accounting Firm. KEMPER CORPORATION FINANCIAL INFORMATION OF KEMPER CORPORATION NOTES TO FINANCIAL INFORMATION (Dollars in Millions) NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The financial information of Kemper Corporation (“Kemper” or the “Parent Company”) should be read in conjunction with the Consolidated Financial Statements and Notes thereto included in Item 8 of this Form 10-K. Kemper’s subsidiaries are accounted for using the equity method of accounting. Equity in Net Income (Loss) of Subsidiaries of these subsidiaries is presented on the Statements of Operations as Equity in Net Income (Loss) of Subsidiaries. NOTE 2. GUARANTEES On July 1, 2022, Kemper executed an indefinite agreement with its subsidiary, Kemper Bermuda Ltd, which requires Kemper to contribute up to $300.0 million in contributed capital to maintain its minimum Enhanced Capital Requirement (“ECR”) as required by the Bermuda Monetary Authority as a Class C insurer. As of December 31, 2024 and 2023, Kemper had contributed $40.0 million under this agreement. NOTE 3. SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION Kemper did not receive any non-cash dividends from or make any non-cash capital contributions to subsidiaries during 2024. In 2023, Kemper received $385.6 million in non-cash dividends from subsidiaries and made non-cash capital contributions of $336.5 million to subsidiaries. NOTE 4. LEASES Kemper leases certain office space for its current and former corporate headquarters under non-cancelable operating leases. The following table presents operating lease Right-of-Use (“ROU”) assets and lease liabilities at December 31, 2024 and 2023.
DOLLARS IN MILLIONS |  | 2024 |  | 2023
Operating Lease Right-of-Use Assets |  | $ | 7.2 |  |  | $ | 7.7 |
Operating Lease Liabilities |  | 21.3 |  |  | 23.3 |
Supplemental cash flow information related to Kemper’s operating leases for the year-ended December 31, 2024 and December 31, 2023 respectively are presented follows.
DOLLARS IN MILLIONS |  | 2024 |  | 2023
Operating Cash Flows from Operating Leases (Fixed Payments) |  | $ | 3.0 |  |  | $ | 5.8 |
Operating Cash Flows from Operating Leases (Liability Reduction) |  | 2.1 |  |  | 4.8 |
Significant judgments and assumptions for determining lease asset and liability as December 31, 2024 and December 31, 2023 respectively are presented below.
DOLLARS IN MILLIONS |  | 2024 |  | 2023
Weighted-average Remaining Lease Term - Operating Leases |  | 9.0 years |  | 10.0 years
Weighted-average Discount Rate - Operating Leases |  | 4.0 | % |  | 4.1 | %
KEMPER CORPORATION FINANCIAL INFORMATION OF KEMPER CORPORATION NOTES TO FINANCIAL INFORMATION (Dollars in Millions) NOTE 4. LEASES (Continued) Kemper’s leases do not provide an implicit rate. Accordingly, Kemper uses its incremental borrowing rate based on the information available at the commencement date in determining the present value of its lease payments. Future minimum operating lease payments at December 31, 2024 were:
DOLLARS IN MILLIONS |  | Operating Leases
2025 |  | $ | 2.6 |
2026 |  | 2.6 |
2027 |  | 2.7 |
2028 |  | 2.8 |
2029 |  | 2.8 |
2030 and Thereafter |  | 12.1 |
Total Future Payments |  | $ | 25.6 |
Less Discount |  | 4.3 |
Present Value of Minimum Lease Payments |  | $ | 21.3 |
NOTE 5. DEBT 4.350% Senior Notes Due 2025 Kemper has $450.0 million aggregate principal of 4.350% senior notes due February 15, 2025 (the “2025 Senior Notes”). Kemper initially issued $250.0 million of the notes in February of 2015 and issued an additional $200.0 million of the notes in June of 2017. The additional notes are fungible with the initial notes issued in 2015, and together are treated as part of a single series for all purposes under the indenture governing the 2025 Senior Notes. The 2025 Senior Notes are unsecured and may be redeemed in whole at any time or in part from time to time at Kemper’s option at specified redemption prices. 2.400% Senior Notes Due 2030 Kemper has $400.0 million aggregate principal of 2.400% senior notes due September 30, 2030 (the “2030 Senior Notes”). The net proceeds of issuance were $395.8 million, net of discount and transaction costs for an effective yield of 2.52%. The 2030 Senior Notes are unsecured and may be redeemed in whole at any time or in part from time to time, at Kemper’s option, at specified redemption prices. 3.800% Senior Notes Due 2032 On February 15, 2022, Kemper offered and sold $400.0 million aggregate principal of 3.800% senior notes due February 23, 2032 (the “2032 Senior Notes”). The net proceeds of issuance were $395.1 million, net of discount and transaction costs for an effective yield of 3.950%. The 2032 Senior Notes are unsecured and may be redeemed in whole at any time or in part from time to time, at Kemper’s option, at specified redemption prices. KEMPER CORPORATION FINANCIAL INFORMATION OF KEMPER CORPORATION NOTES TO FINANCIAL INFORMATION (Dollars in Millions) NOTE 5. DEBT (Continued) In anticipation of the issuance of the 2032 Senior Notes and for risk management purposes, the Company entered into a derivative transaction to hedge the risk of changes in the debt cash flows attributable to changes in the benchmark U.S. Treasury interest rate during the period leading up to the debt issuance (“Treasury Lock”). The effective portion of the gain on the derivative instrument upon discontinuance was $5.9 million before taxes, and is reported as a component of Accumulated Other Comprehensive Loss. Beginning with the issuance of the 2032 Senior Notes described in the preceding paragraph, such gain is being amortized into earnings and reported in Interest Expense in the same periods that the hedged items affect earnings. Amortization, reported in Interest Expense, was $0.6 million for the year ended December 31, 2024. The Company expects to reclassify $0.5 million of net gain on derivative instruments from AOCI to earnings for the twelve months ended December 31, 2025 as interest expense on the debt is recognized. 5.875% Fixed-Rate Reset Junior Subordinated Debentures Due 2062 On March 10, 2022, Kemper issued $150.0 million aggregate principal amount of 5.875% Fixed-Rate Reset Junior Subordinated Debentures due March 15, 2062 (the “2062 Junior Debentures”). The net proceeds from issuance were $144.7 million, net of discount and transaction costs. The 2062 Junior Debentures will bear interest from and including the date of original issue to, but excluding, March 15, 2027 (the “First Reset Date”) at the fixed rate of 5.875% per annum. The interest rate on the First Reset Date, and subsequent Reset Dates, will be equal to the Five-Year Treasury Rate as of the most recent Reset Date plus 4.140% to be reset on each Reset Date. Interest is due quarterly in arrears beginning on June 15, 2022. The Company has the option to defer interest payments for one or more optional deferral periods of up to five consecutive years, provided that no optional deferral period shall extend beyond March 15, 2062, or any earlier accelerated maturity date arising from an event of default or any earlier redemption of the 2062 Junior Debentures. The 2062 Junior Debentures are unsecured and may be redeemed in whole or in part on the First Reset Date or any time thereafter, at a redemption price equal to the principal amount of the debentures being redeemed plus any accrued and unpaid interest.

X
- References No definition available. + Details
Name: | srt_CondensedFinancialInformationOfParentCompanyOnlyDisclosureAbstract
Namespace Prefix: | srt_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for condensed financial information, including the financial position, cash flows, and the results of operations of the registrant (parent company) as of the same dates or for the same periods for which audited consolidated financial statements are being presented. Alternatively, the details of this disclosure can be reported by the specific parent company taxonomy elements, indicating the appropriate date and period contexts in an instance document. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 235 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 3 -Subparagraph (SX 210.12-04(a)) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480678/235-10-S99-3 Reference 2: http://www.xbrl.org/2003/role/recommendedDisclosureRef -Topic 810 -SubTopic 10 -Name Accounting Standards Codification -Section 45 -Paragraph 11 -Publisher FASB -URI https://asc.fasb.org/1943274/2147481231/810-10-45-11 + Details
Name: | us-gaap_CondensedFinancialInformationOfParentCompanyOnlyDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration