Business Segments

9 Months Ended

Sep. 30, 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 insurance and homeowners 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 nine and three months endedSeptember 30, 2013 and 2012 were:

	Nine Months Ended						Three Months Ended
(Dollars in Millions)	Sep 30, 2013			Sep 30, 2012			Sep 30, 2013			Sep 30, 2012
Revenues:
Kemper Preferred:
Earned Premiums	$	661.2		$	655.9		$	220.5		$	222.9
Net Investment Income	41.4			33.6			13.2			10.8
Other Income	0.2			0.3			0.1			0.1
Total Kemper Preferred	702.8			689.8			233.8			233.8
Kemper Specialty:
Earned Premiums	297.9			317.3			98.1			103.9
Net Investment Income	16.4			14.4			5.0			4.5
Other Income	0.2			0.2			—			0.1
Total Kemper Specialty	314.5			331.9			103.1			108.5
Kemper Direct:
Earned Premiums	95.6			131.2			30.1			40.3
Net Investment Income	10.1			10.7			3.1			3.4
Total Kemper Direct	105.7			141.9			33.2			43.7
Life and Health Insurance:
Earned Premiums	475.5			481.9			158.8			160.2
Net Investment Income	159.3			153.5			56.5			48.1
Other Income	0.1			0.1			—			—
Total Life and Health Insurance	634.9			635.5			215.3			208.3
Total Segment Revenues	1,757.9			1,799.1			585.4			594.3
Net Realized Gains on Sales of Investments	78.3			59.9			49.1			50.9
Net Impairment Losses Recognized in Earnings	(6.3		)	(4.1		)	(3.4		)	(3.2		)
Other	10.6			10.8			4.6			3.6
Total Revenues	$	1,840.5		$	1,865.7		$	635.7		$	645.6

Segment Operating Profit for the nine and three months endedSeptember 30, 2013 and 2012 was:

	Nine Months Ended						Three Months Ended
(Dollars in Millions)	Sep 30, 2013			Sep 30, 2012			Sep 30, 2013			Sep 30, 2012
Segment Operating Profit (Loss):
Kemper Preferred	$	55.0		$	4.4		$	14.9		$	10.4
Kemper Specialty	11.7			2.5			7.2			3.2
Kemper Direct	31.3			(6.9		)	10.1			1.6
Life and Health Insurance	98.3			102.7			35.2			29.4
Total Segment Operating Profit	196.3			102.7			67.4			44.6
Corporate and Other Operating Loss	(35.3		)	(30.1		)	(11.1		)	(10.8		)
Total Operating Profit	161.0			72.6			56.3			33.8
Net Realized Gains on Sales of Investments	78.3			59.9			49.1			50.9
Net Impairment Losses Recognized in Earnings	(6.3		)	(4.1		)	(3.4		)	(3.2		)
Income from Continuing Operations before Income Taxes	$	233.0		$	128.4		$	102.0		$	81.5

Note 10 - Business Segments (continued)

Segment Net Operating Income for the nine and three months endedSeptember 30, 2013 and 2012 was:

	Nine Months Ended						Three Months Ended
(Dollars in Millions)	Sep 30, 2013			Sep 30, 2012			Sep 30, 2013			Sep 30, 2012
Segment Net Operating Income (Loss):
Kemper Preferred	$	40.5		$	8.5		$	11.2		$	8.4
Kemper Specialty	9.5			4.0			5.3			2.7
Kemper Direct	21.5			(2.7		)	6.9			1.5
Life and Health Insurance	64.4			66.5			22.9			19.2
Total Segment Net Operating Income	135.9			76.3			46.3			31.8
Corporate and Other Net Operating Loss	(23.0		)	(19.1		)	(7.4		)	(7.2		)
Consolidated Net Operating Income	112.9			57.2			38.9			24.6
Unallocated Net Income (Loss) From:
Net Realized Gains on Sales of Investments	50.9			38.9			31.9			33.0
Net Impairment Losses Recognized in Earnings	(4.1		)	(2.6		)	(2.2		)	(2.0		)
Income from Continuing Operations	$	159.7		$	93.5		$	68.6		$	55.6

Earned Premiums by product line for the nine and three months endedSeptember 30, 2013 and 2012 were:

	Nine Months Ended				Three Months Ended
(Dollars in Millions)	Sep 30, 2013		Sep 30, 2012		Sep 30, 2013		Sep 30, 2012
Life	$	294.9	$	296.0	$	98.4	$	98.4
Accident and Health	121.2		124.2		40.7		41.3
Property and Casualty:
Personal Lines:
Automobile	729.4		794.6		239.1		261.3
Homeowners	244.8		236.6		82.3		80.8
Other Personal	101.2		103.2		33.5		34.5
Total Personal Lines	1,075.4		1,134.4		354.9		376.6
Commercial Automobile	38.7		31.7		13.5		11.0
Total Earned Premiums	$	1,530.2	$	1,586.3	$	507.5	$	527.3