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v3.25.3

Business Segments | 9 Months Ended
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Sep. 30, 2025
Segment Reporting [Abstract] |
Business Segments | Business Segments The Company is engaged, through its subsidiaries, in the property and casualty insurance and life and health insurance businesses. The Company conducts its operations through two operating segments: Specialty Property & Casualty Insurance and Life Insurance. The Specialty Property & Casualty Insurance segment’s principal products are specialty personal automobile 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. Corporate and Other operations include interest expense, board of directors’ fees, and general corporate expenses incurred by the Company which are not allocated to other businesses. Non-Core Operations includes the results of the Preferred Insurance business which the Company expects to fully exit. Segment Adjusted Net Operating Income The Company analyzes the operating performance of each segment using segment adjusted net operating income. Segment adjusted net operating income does not equate to “net (loss) income” 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 net operating income is calculated by adjusting each segment’s income after income taxes for the following items: (i) Change in Fair Value of Equity and Convertible Securities; (ii) Net Realized Investment Gains; (iii) Impairment Losses; (iv) Acquisition and Disposition Related Transaction, Integration, Restructuring and Other Costs; (v) Debt Extinguishment, Pension Settlement and Other Charges; (vi) Goodwill Impairment Charges; (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 net operating income is not a substitute for income determined in accordance with U.S. GAAP, and the Company’s definition of segment adjusted net operating income may differ from that used by other companies. The Company, however, believes that the presentation of segment adjusted net operating income, as measured for management purposes, enhances the understanding of results of operations by highlighting the underlying profitability factors of its businesses. Total Segment, Non-Core Operations, and Corporate and Other assets at September 30, 2025 and December 31, 2024 were:
(Dollars in Millions) |  | Sep 30, 2025 |  | Dec 31, 2024
Segment Assets: |  |  |  |
Specialty Property & Casualty Insurance 1 |  | $ | 6,642.1 |  |  | $ | 6,352.9 |
Life Insurance |  | 4,879.0 |  |  | 4,731.7 |
Total Segment Assets |  | 11,521.1 |  |  | 11,084.6 |
Corporate and Other |  | 262.9 |  |  | 774.7 |
Non-Core Operations |  | 659.4 |  |  | 771.1 |
Total Assets 1 |  | $ | 12,443.4 |  |  | $ | 12,630.4 |
1 Includes $70.0 million and $41.5 million attributable to Kemper Reciprocal as of September 30, 2025 and December 31, 2024, respectively, which is reported as a consolidated variable interest entity.
Note 3 - Business Segments (Continued) Earned Premiums by product line, including a reconciliation to Total Earned Premiums, for the three and nine months ended September 30, 2025 and 2024 were:
|  | Three Months Ended |  | Nine Months Ended
(Dollars in Millions) |  | Sep 30, 2025 |  | Sep 30, 2024 |  | Sep 30, 2025 |  | Sep 30, 2024
Specialty Property & Casualty Insurance: |  |  |  |  |  |  |  |
Personal Automobile |  | $ | 785.1 |  |  | $ | 731.3 |  |  | $ | 2,328.1 |  |  | $ | 2,098.1 |
Commercial Automobile |  | 232.2 |  |  | 187.7 |  |  | 662.2 |  |  | 523.5 |
Total Specialty Property & Casualty Insurance |  | 1,017.3 |  |  | 919.0 |  |  | 2,990.3 |  |  | 2,621.6 |
Life Insurance: |  |  |  |  |  |  |  |
Life |  | 84.1 |  |  | 84.2 |  |  | 252.6 |  |  | 249.2 |
Accident and Health |  | 5.5 |  |  | 5.6 |  |  | 16.4 |  |  | 16.8 |
Property |  | 10.2 |  |  | 10.8 |  |  | 31.0 |  |  | 32.7 |
Total Life Insurance |  | 99.8 |  |  | 100.6 |  |  | 300.0 |  |  | 298.7 |
Total Segment Earned Premiums |  | 1,117.1 |  |  | 1,019.6 |  |  | 3,290.3 |  |  | 2,920.3 |
Non-Core Operations |  | 16.2 |  |  | 48.9 |  |  | 61.7 |  |  | 213.8 |
Total Earned Premiums |  | $ | 1,133.3 |  |  | $ | 1,068.5 |  |  | $ | 3,352.0 |  |  | $ | 3,134.1 |
Segment Revenues, including a reconciliation to Total Revenues, for the three and nine months ended September 30, 2025 and 2024 were:
|  | Three Months Ended |  | Nine Months Ended
(Dollars in Millions) |  | Sep 30, 2025 |  | Sep 30, 2024 |  | Sep 30, 2025 |  | Sep 30, 2024
Segment Revenues: |  |  |  |  |  |  |  |
Specialty Property & Casualty Insurance: |  |  |  |  |  |  |  |
Earned Premiums |  | $ | 1,017.3 |  |  | $ | 919.0 |  |  | $ | 2,990.3 |  |  | $ | 2,621.6 |
Net Investment Income |  | 53.8 |  |  | 52.0 |  |  | 153.9 |  |  | 139.7 |
Other Income |  | 2.5 |  |  | 1.6 |  |  | 6.5 |  |  | 4.6 |
Total Specialty Property & Casualty Insurance |  | 1,073.6 |  |  | 972.6 |  |  | 3,150.7 |  |  | 2,765.9 |
Life Insurance: |  |  |  |  |  |  |  |
Earned Premiums |  | 99.8 |  |  | 100.6 |  |  | 300.0 |  |  | 298.7 |
Net Investment Income |  | 48.0 |  |  | 50.3 |  |  | 141.1 |  |  | 125.1 |
Other Income |  | 0.4 |  |  | 0.2 |  |  | 1.4 |  |  | 0.7 |
Total Life Insurance |  | 148.2 |  |  | 151.1 |  |  | 442.5 |  |  | 424.5 |
Total Segment Revenues |  | 1,221.8 |  |  | 1,123.7 |  |  | 3,593.2 |  |  | 3,190.4 |
Change in Fair Value of Equity and Convertible Securities |  | (2.1) |  |  | (2.3) |  |  | (2.5) |  |  | (0.1) |
Net Realized Investment Gains |  | 3.9 |  |  | 1.1 |  |  | 4.7 |  |  | 9.2 |
Impairment Losses |  | (3.1) |  |  | (2.2) |  |  | (6.4) |  |  | (3.8) |
Non-Core Operations |  | 18.2 |  |  | 54.8 |  |  | 67.4 |  |  | 244.8 |
Other |  | 1.0 |  |  | 3.8 |  |  | 1.9 |  |  | 11.3 |
Total Revenues |  | $ | 1,239.7 |  |  | $ | 1,178.9 |  |  | $ | 3,658.3 |  |  | $ | 3,451.8 |
Note 3 - Business Segments (Continued) Significant Segment Expenses that were regularly provided to the CODM for the three and nine months ended September 30, 2025 and 2024 were:
|  | Three Months Ended |  | Nine Months Ended
(Dollars in Millions) |  | Sep 30, 2025 |  | Sep 30, 2024 |  | Sep 30, 2025 |  | Sep 30, 2024
Segment Expenses: |  |  |  |  |  |  |  |
Specialty Property & Casualty Insurance: |  |  |  |  |  |  |  |
Current Year |  |  |  |  |  |  |  |
Non-catastrophe Losses and LAE |  | $ | 798.7 |  |  | $ | 644.2 |  |  | $ | 2,211.1 |  |  | $ | 1,846.0 |
Catastrophe Losses and LAE |  | 1.0 |  |  | 3.6 |  |  | 10.1 |  |  | 18.0 |
Prior Years |  |  |  |  |  |  |  |
Non-catastrophe Losses and LAE |  | 51.4 |  |  | (0.1) |  |  | 65.5 |  |  | 4.4 |
Catastrophe Losses and LAE |  | — |  |  | 0.2 |  |  | 0.6 |  |  | 0.8 |
Total Incurred Losses and LAE |  | 851.1 |  |  | 647.9 |  |  | 2,287.3 |  |  | 1,869.2 |
Policy Acquisition Costs 1 |  | 137.0 |  |  | 119.6 |  |  | 409.4 |  |  | 349.0 |
Business Unit Operating Costs 2 |  | 44.2 |  |  | 40.5 |  |  | 122.6 |  |  | 101.4 |
Corporate Overhead Costs 3 |  | 33.4 |  |  | 34.8 |  |  | 102.5 |  |  | 102.1 |
Total Insurance Expenses |  | 214.6 |  |  | 194.9 |  |  | 634.5 |  |  | 552.5 |
Income Tax Expense |  | 0.3 |  |  | 26.2 |  |  | 44.4 |  |  | 69.1 |
Total Specialty Property & Casualty Insurance |  | 1,066.0 |  |  | 869.0 |  |  | 2,966.2 |  |  | 2,490.8 |
Life Insurance: |  |  |  |  |  |  |  |
Policyholders’ Benefits and Incurred Losses and LAE |  | 60.5 |  |  | 64.1 |  |  | 186.2 |  |  | 191.0 |
Policy Acquisition Costs 1 |  | 32.8 |  |  | 34.9 |  |  | 97.7 |  |  | 100.3 |
Business Unit Operating Costs 2 |  | 24.6 |  |  | 24.1 |  |  | 76.1 |  |  | 71.6 |
Corporate Overhead Costs 3 |  | 8.2 |  |  | 10.0 |  |  | 25.9 |  |  | 31.0 |
Total Insurance Expenses |  | 65.6 |  |  | 69.0 |  |  | 199.7 |  |  | 202.9 |
Income Tax Expense |  | 3.5 |  |  | 3.0 |  |  | 8.2 |  |  | 3.9 |
Total Life Insurance |  | 129.6 |  |  | 136.1 |  |  | 394.1 |  |  | 397.8 |
Total Segment Expenses |  | $ | 1,195.6 |  |  | $ | 1,005.1 |  |  | $ | 3,360.3 |  |  | $ | 2,888.6 |
1 Policy acquisition costs primarily represents commissions and premium taxes that are incurred by the Company as a result of underwriting insurance policies and reflect the impacts of deferral and amortization of certain of these costs in accordance with the Company’s accounting policies.
2 Business unit operating costs are general expenses incurred by the Company's segments as part of ongoing operations and includes employee, IT, and facilities expenses.
3 Corporate overhead costs represents general expenses and other shared service expenses which are allocated across the Company.
Note 3 - Business Segments (Continued) Total Segment Adjusted Net Operating Income, including a reconciliation to Net (Loss) Income attributable to Kemper Corporation, for the three and nine months ended September 30, 2025 and 2024 was:
|  | Three Months Ended |  | Nine Months Ended
(Dollars in Millions) |  | Sep 30, 2025 |  | Sep 30, 2024 |  | Sep 30, 2025 |  | Sep 30, 2024
Segment Adjusted Net Operating Income: |  |  |  |  |  |  |  |
Specialty Property & Casualty Insurance |  |  |  |  |  |  |  |
Revenues |  | $ | 1,073.6 |  |  | $ | 972.6 |  |  | $ | 3,150.7 |  |  | $ | 2,765.9 |
Expenses |  | (1,066.0) |  |  | (869.0) |  |  | (2,966.2) |  |  | (2,490.8) |
Specialty Property & Casualty Insurance Adjusted Net Operating Income |  | 7.6 |  |  | 103.6 |  |  | 184.5 |  |  | 275.1 |
Life Insurance |  |  |  |  |  |  |  |
Revenues |  | 148.2 |  |  | 151.1 |  |  | 442.5 |  |  | 424.5 |
Expenses |  | (129.6) |  |  | (136.1) |  |  | (394.1) |  |  | (397.8) |
Life Insurance Adjusted Net Operating Income |  | 18.6 |  |  | 15.0 |  |  | 48.4 |  |  | 26.7 |
Total Segment Adjusted Net Operating Income |  | 26.2 |  |  | 118.6 |  |  | 232.9 |  |  | 301.8 |
Corporate and Other Adjusted Net Operating Loss |  | (9.0) |  |  | (15.1) |  |  | (30.7) |  |  | (39.0) |
Less: Net Loss attributable to Noncontrolling Interest |  | (3.2) |  |  | (1.5) |  |  | (8.7) |  |  | (3.6) |
Net Income (Loss) From: |  |  |  |  |  |  |  |
Change in Fair Value of Equity and Convertible Securities |  | (1.7) |  |  | (1.8) |  |  | (2.0) |  |  | (0.1) |
Net Realized Investment Gains |  | 3.1 |  |  | 0.9 |  |  | 3.7 |  |  | 7.3 |
Impairment Losses |  | (2.5) |  |  | (1.7) |  |  | (5.1) |  |  | (3.0) |
Acquisition and Disposition Related Transaction, Integration, Restructuring and Other Costs |  | (19.6) |  |  | (9.1) |  |  | (27.6) |  |  | (24.3) |
Debt Extinguishment, Pension Settlement and Other Charges |  | — |  |  | (2.2) |  |  | 0.4 |  |  | (0.1) |
Non-Core Operations |  | (20.7) |  |  | (17.4) |  |  | (29.0) |  |  | (25.8) |
Net (Loss) Income attributable to Kemper Corporation |  | $ | (21.0) |  |  | $ | 73.7 |  |  | $ | 151.3 |  |  | $ | 220.4 |

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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 21 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-21 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name 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