Business Segments

3 Months Ended

Mar. 31, 2013

Segment Reporting [Abstract]

Business Segments

Note 10 - 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 four operating segments: Kemper Preferred, Kemper Specialty, Kemper 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 Kemper 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. The Kemper Direct segment distributes personal automobile, homeowners and renters insurance products 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 10 - Business Segments (continued)

Segment Revenues for the three months endedMarch 31, 2013 and 2012 were:

	Three Months Ended
(Dollars in Millions)	Mar 31, 2013			Mar 31, 2012
Revenues:
Kemper Preferred:
Earned Premiums	$	219.2		$	215.0
Net Investment Income	15.0			10.9
Other Income	0.1			0.1
Total Kemper Preferred	234.3			226.0
Kemper Specialty:
Earned Premiums	99.2			106.8
Net Investment Income	6.3			5.2
Other Income	0.1			—
Total Kemper Specialty	105.6			112.0
Kemper Direct:
Earned Premiums	33.7			47.0
Net Investment Income	3.8			3.6
Total Kemper Direct	37.5			50.6
Life and Health Insurance:
Earned Premiums	157.8			160.4
Net Investment Income	53.0			55.7
Other Income	—			0.1
Total Life and Health Insurance	210.8			216.2
Total Segment Revenues	588.2			604.8
Net Realized Gains on Sales of Investments	26.9			4.9
Net Impairment Losses Recognized in Earnings	(1.9		)	(0.5		)
Other	2.7			2.0
Total Revenues	$	615.9		$	611.2

Segment Operating Profit (Loss) for the three months endedMarch 31, 2013 and 2012 was:

	Three Months Ended
(Dollars in Millions)	Mar 31, 2013			Mar 31, 2012
Segment Operating Profit (Loss):
Kemper Preferred	$	26.4		$	13.1
Kemper Specialty	4.2			4.9
Kemper Direct	9.6			(3.0		)
Life and Health Insurance	31.9			43.0
Total Segment Operating Profit	72.1			58.0
Corporate and Other Operating Loss	(12.5		)	(12.0		)
Total Operating Profit	59.6			46.0
Net Realized Gains on Sales of Investments	26.9			4.9
Net Impairment Losses Recognized in Earnings	(1.9		)	(0.5		)
Income from Continuing Operations before Income Taxes	$	84.6		$	50.4

Note 10 - Business Segments (continued)

Segment Net Operating Income (Loss) for the three months endedMarch 31, 2013 and 2012 was:

	Three Months Ended
(Dollars in Millions)	Mar 31, 2013			Mar 31, 2012
Segment Net Operating Income (Loss):
Kemper Preferred	$	18.8		$	10.4
Kemper Specialty	3.5			4.1
Kemper Direct	6.7			(1.3		)
Life and Health Insurance	21.2			27.8
Total Segment Net Operating Income	50.2			41.0
Corporate and Other Net Operating Loss	(7.9		)	(7.6		)
Consolidated Net Operating Income	42.3			33.4
Unallocated Net Income (Loss) From:
Net Realized Gains on Sales of Investments	17.5			3.2
Net Impairment Losses Recognized in Earnings	(1.2		)	(0.3		)
Income from Continuing Operations	$	58.6		$	36.3

Earned Premiums by product line for the three months endedMarch 31, 2013 and 2012 were:

	Three Months Ended
(Dollars in Millions)	Mar 31, 2013		Mar 31, 2012
Life	$	97.9	$	98.5
Accident and Health	40.2		41.5
Property and Casualty:
Personal Lines:
Automobile	245.7		267.7
Homeowners	80.4		77.1
Other Personal	33.6		34.2
Total Personal Lines	359.7		379.0
Commercial Automobile	12.1		10.2
Total Earned Premiums	$	509.9	$	529.2