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Schedule 2 - Parent Company Financial Statements (Tables) | 12 Months Ended
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Dec. 31, 2024
Condensed Financial Information Disclosure [Abstract] |
Parent Company Balance Sheets | 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.
Parent Company Statements of Income (Loss) | 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.
Parent Company Statements of Comprehensive Income | 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.
Parent Company Statements of Cash Flows | 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.
Lease, Cost | The following table presents operating lease right-of-use assets and lease liabilities.
(Dollars in Millions) |  | Dec 31, 2024 |  | Dec 31, 2023
Operating Lease Right-of-Use Assets |  | $ | 33.9 |  |  | $ | 38.4 |
Operating Lease Liabilities |  | 51.6 |  |  | 62.3 |
Lease expenses are included in Insurance and Other Expenses in the Consolidated Statements of Income (Loss). Additional information regarding the Company’s operating leases for the year ended December 31, 2024 and 2023 is presented below.
(Dollars in Millions) |  | 2024 |  | 2023
Lease Cost: |  |  |  |
Operating Lease Cost |  | $ | 15.5 |  |  | $ | 15.7 |
Variable Lease Cost |  | 4.7 |  |  | 3.2 |
Short-Term Lease Cost 1 |  | 1.1 |  |  | 0.3 |
Total Lease Cost |  | $ | 21.3 |  |  | $ | 19.2 |
1 Leases with an initial term of twelve months or less are not recorded on the Consolidated Balance Sheets.
|  | 2024 |  | 2023
Weighted-average Remaining Lease Term - Operating Leases |  | 4.5 years |  | 5.5 years
Weighted-average Discount Rate - Operating Leases |  | 4.5 | % |  | 4.3 | %
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 | %
Schedule of Future Minimum Lease Payments for Operating Leases | Future minimum lease payments under operating leases at December 31, 2024 are presented below.
(Dollars in Millions) |  |  |  |
2025 |  |  |  | $ | 18.2 |
2026 |  |  |  | 11.3 |
2027 |  |  |  | 9.9 |
2028 |  |  |  | 7.1 |
2029 |  |  |  | 5.4 |
2030 and Thereafter |  |  |  | 12.9 |
Total Future Payments |  |  |  | $ | 64.8 |
Less: Discount |  |  |  | 13.2 |
Present Value of Minimum Lease Payments |  |  |  | $ | 51.6 |
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 |

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