Business Segments

9 Months Ended

Sep. 30, 2011

Segment Reporting [Abstract]

Business Segments

Note 11 - Business Segments

The Company is engaged, through its subsidiaries, in the property and casualty insurance and life and health insurance. The Company conducts its operations through four operating segments: Kemper Preferred, Unitrin Specialty, Unitrin Direct and Life and Health Insurance.

The Kemper Preferred segment provides preferred and standard risk personal automobile insurance, homeowners insurance and other personal insurance through independent agents. The Unitrin Specialty segment provides automobile insurance to individuals and businesses in the non-standard and specialty market through independent agents. The non-standard automobile insurance market consists of individuals and companies that have difficulty obtaining standard or preferred risk insurance, usually because of their adverse driving records or claim or credit histories. Unitrin Direct markets personal automobile, homeowners and renters insurance through direct mail and the Internet through web insurance portals, click-thrus and its own website and through employer-sponsored voluntary benefit programs and other affinity relationships. The Life and Health Insurance segment provides individual life, accident, health and property insurance.

Note 11 - Business Segments (continued)

Segment Revenues for the nine and three months ended September 30, 2011 and 2010 were:

	Nine Months Ended						Three Months Ended
(Dollars in Millions)	Sep 30, 2011			Sep 30, 2010			Sep 30, 2011			Sep 30, 2010
Revenues:
Kemper Preferred:
Earned Premiums	$	642.8		$	667.1		$	216.5		$	221.8
Net Investment Income	38.1			38.6			8.4			12.3
Other Income	0.2			0.3			0.1			0.1
Total Kemper Preferred	681.1			706.0			225.0			234.2
Unitrin Specialty:
Earned Premiums	336.7			359.9			111.0			117.0
Net Investment Income	16.4			18.5			3.3			5.7
Other Income	0.4			0.5			0.2			0.2
Total Unitrin Specialty	353.5			378.9			114.5			122.9
Unitrin Direct:
Earned Premiums	171.8			217.6			54.4			68.6
Net Investment Income	13.9			16.0			2.9			4.8
Other Income	0.1			0.1			0.1			—
Total Unitrin Direct	185.8			233.7			57.4			73.4
Life and Health Insurance:
Earned Premiums	485.8			483.2			161.1			160.8
Net Investment Income	148.3			158.4			42.9			53.8
Other Income	0.1			0.1			—			0.1
Total Life and Health Insurance	634.2			641.7			204.0			214.7
Total Segment Revenues	1,854.6			1,960.3			600.9			645.2
Net Realized Gains (Losses) on Sales of Investments	27.8			14.6			(4.2		)	7.2
Net Impairment Losses Recognized in Earnings	(6.7		)	(12.7		)	(5.0		)	(4.6		)
Other	6.0			9.5			1.1			2.8
Total Revenues	$	1,881.7		$	1,971.7		$	592.8		$	650.6

Note 11 - Business Segments (continued)

Segment Operating Profit (Loss) for the nine and three months ended September 30, 2011 and 2010 was:

	Nine Months Ended						Three Months Ended
(Dollars in Millions)	Sep 30, 2011			Sep 30, 2010			Sep 30, 2011			Sep 30, 2010
Segment Operating Profit (Loss):
Kemper Preferred	$	(55.7	)	$	54.0		$	(15.7	)	$	17.1
Unitrin Specialty	17.8			23.0			6.7			8.0
Unitrin Direct	(19.3		)	(1.7		)	(3.7		)	(1.5		)
Life and Health Insurance	117.8			100.9			34.3			26.9
Total Segment Operating Profit	60.6			176.2			21.6			50.5
Unallocated Operating Loss	(31.8		)	(18.0		)	(13.2		)	(6.2		)
Total Operating Profit	28.8			158.2			8.4			44.3
Net Realized Gains (Losses) on Sales of Investments	27.8			14.6			(4.2		)	7.2
Net Impairment Losses Recognized in Earnings	(6.7		)	(12.7		)	(5.0		)	(4.6		)
Income (Loss) from Continuing Operations before Income Taxes and Equity in Net Loss of Investee	$	49.9		$	160.1		$	(0.8	)	$	46.9

Segment Net Operating Income (Loss) for the nine and three months ended September 30, 2011 and 2010 was:

	Nine Months Ended						Three Months Ended
(Dollars in Millions)	Sep 30, 2011			Sep 30, 2010			Sep 30, 2011			Sep 30, 2010
Segment Net Operating Income (Loss):
Kemper Preferred	$	(29.7	)	$	41.6		$	(8.0	)	$	13.5
Unitrin Specialty	14.4			18.0			5.3			6.2
Unitrin Direct	(10.1		)	0.8			(1.6		)	0.3
Life and Health Insurance	76.0			60.3			22.4			12.4
Total Segment Net Operating Income	50.6			120.7			18.1			32.4
Unallocated Net Operating Loss	(19.5		)	(8.5		)	(8.3		)	(1.8		)
Net Operating Income	31.1			112.2			9.8			30.6
Unallocated Net Income (Loss) From:
Net Realized Gains (Losses) on Sales of Investments	18.0			9.5			(2.7		)	4.7
Net Impairment Losses Recognized in Earnings	(4.3		)	(8.3		)	(3.3		)	(3.0		)
Income from Continuing Operations	$	44.8		$	113.4		$	3.8		$	32.3

Note 11 - Business Segments (continued)

Earned Premiums by product line for the nine and three months ended September 30, 2011 and 2010 were:

	Nine Months Ended				Three Months Ended
(Dollars in Millions)	Sep 30, 2011		Sep 30, 2010		Sep 30, 2011		Sep 30, 2010
Life	$	297.1	$	298.3	$	98.0	$	98.8
Accident and Health	124.6		120.5		41.9		40.5
Property and Casualty:
Personal Lines:
Automobile	854.7		947.4		281.4		308.3
Homeowners	226.4		223.7		76.6		75.1
Other Personal	104.5		104.6		35.0		34.8
Total Personal Lines	1,185.6		1,275.7		393.0		418.2
Commercial Automobile	29.8		33.3		10.1		10.7
Total Earned Premiums	$	1,637.1	$	1,727.8	$	543.0	$	568.2