Discontinued Operations

9 Months Ended

Sep. 30, 2011

Discontinued Operations and Disposal Groups [Abstract]

Disposal Groups, Including Discontinued Operations, Disclosure [Text Block]

Note 2 - Discontinued Operations

In the first quarter of 2011, Kemper's subsidiary, Fireside Bank, paid $0.6 million in incentives, in lieu of future interest, to holders of certificates of deposits to voluntarily close their accounts in advance of their scheduled maturity dates. Fireside Bank redeemed $12.4 million of certificates of deposits in connection with such incentive offers.

In the first quarter of 2011, Fireside Bank also paid $85.2 million, plus $3.6 million of future interest payable through the respective maturity dates, to redeem and close certain certificates of deposits. In the second quarter of 2011, Fireside Bank paid $172.7 million, plus future interest payable of $6.9 million through the respective maturity dates, to redeem and close all certificates of deposits that remained outstanding at March 31, 2011.

During the third quarter of 2011, Fireside Bank sold its active portfolio of automobile loan receivables with a carrying value of $214.2 million, net of Reserve for Loan Losses of $22.9 million, at a gain of $4.5 million before tax. The Company has accounted for Fireside Bank as a discontinued operation beginning with these financial statements and has reclassified the results of Fireside Bank and the related disclosures for the nine and three months endedSeptember 30, 2010 to conform to the current presentation.

Fireside Bank had total capital of $266.2 million at September 30, 2011. Following approval from its regulators, Fireside Bank distributed $250.0 million of its capital to its parent company, Fireside Securities Corporation ("Fireside Securities") in October 2011. Fireside Securities, then in turn, distributed the same amount to its parent company, Kemper Corporation.

The Company has retained Property and Casualty Insurance Reserves for unpaid insured losses of its former Unitrin Business Insurance operations that occurred prior to June 1, 2008, the effective date of the sale of such operations to AmTrust Financial Services, Inc. Property and Casualty Insurance Reserves reported in the Company's Condensed Consolidated Balance Sheets include $134.3 million and $155.0 million at September 30, 2011 and December 31, 2010, respectively, for such retained liabilities. Changes in the Company's estimate of such retained liabilities after the sale are reported as a separate component of the results of discontinued operations.

Note 2 - Discontinued Operations (continued)

Summary financial information included in Income from Discontinued Operations for the nine and three months endedSeptember 30, 2011 and 2010 is presented below:

	Nine Months Ended						Three Months Ended
(Dollars in Millions, Except Per Share Amounts)	Sep 30, 2011			Sep 30, 2010			Sep 30, 2011			Sep 30, 2010
Interest, Loan Fees and Earned Discounts	$	31.8		$	78.9		$	3.8		$	22.4
Other Automobile Finance Revenues	1.4			1.0			1.1			0.2
Gain on Sale of Portfolio of Automobile Loan Receivables	4.5			—			4.5			—
Total Automobile Finance Revenues	37.7			79.9			9.4			22.6
Net Investment Income	0.5			1.5			—			0.5
Net Realized Gains on Sales of Investments	0.4			—			—			—
Total Revenues Included in Discontinued Operations	$	38.6		$	81.4		$	9.4		$	23.1
Income (Loss) from Discontinued Operations before Income Taxes:
Fireside Bank:
Results of Operations	$	17.8		$	14.7		$	(2.0	)	$	5.3
Gain on Sale of Portfolio of Automobile Loan Receivables	4.5			—			4.5			—
Unitrin Business Insurance:
Change in Estimate of Retained Liabilities Arising from Discontinued Operations	(3.0		)	(1.0		)	(1.9		)	0.3
Income from Discontinued Operations before Income Taxes	19.3			13.7			0.6			5.6
Income Tax Benefit (Expense)	(5.8		)	(5.4		)	0.3			(2.2		)
Income from Discontinued Operations	$	13.5		$	8.3		$	0.9		$	3.4
Income from Discontinued Operations Per Unrestricted Share:
Basic	$	0.22		$	0.13		$	0.02		$	0.06
Diluted	$	0.22		$	0.13		$	0.02		$	0.06