Acquisition of Business (Notes)

6 Months Ended

Jun. 30, 2015

Acquisition of Business [Abstract]

Business Combination Disclosure

Note 2 - Acquisition of Business

On April 30, 2015, Kemper acquired 100% of the outstanding common stock of Alliance United Group and its wholly-owned subsidiaries, Alliance United Insurance Company and Alliance United Insurance Services, (individually and collectively referred to herein as “Alliance United”) in a cash transaction for a total purchase price of $71.0 million, subject to certain post-closing indemnifications. After completing the transaction, Kemper contributed $75.0 million to support the book of business acquired. The results of Alliance United are included in the Condensed Consolidated Financial Statements from the date of acquisition and are reported in the Company’s Property & Casualty Insurance segment. Alliance United is a provider of nonstandard personal automobile insurance in California. As a result of the acquisition, the Company increased its presence in the California nonstandard automobile insurance market by gaining access to additional independent agents and brokers and by gaining expertise in serving the Hispanic market.

The Company has not yet completed the process of estimating the fair value of assets acquired and liabilities assumed, including, but not limited to, receivables, intangible assets, unearned premium reserves, certain tax-related balances and certain other assets and liabilities. Accordingly, the Company’s preliminary estimates and the allocation of the purchase price to the assets acquired and liabilities assumed may change as the Company completes the process, which would also likely impact the Company’s allocation of the purchase price to Goodwill. The Company expects to finalize the purchase price allocation in the third quarter of 2015. In accordance with Accounting Standards Codification (“ASC”) 805, Business Combinations, changes, if any, to the preliminary estimates and allocation will be reported in the Company’s financial statements retroactively. Based on the Company’s preliminary allocation of the purchase price, the fair values of the assets acquired and liabilities assumed were:

(Dollars in Millions)
Investments	$	187.0
Cash	13.4
Receivables from Policyholders	44.4
Other Receivables	49.2
Value of Intangible Assets Acquired (Reported in Other Assets)	26.3
Goodwill	6.7
Current Income Taxes	1.7
Other Assets	9.2
Property and Casualty Insurance Reserves	(155.8		)
Unearned Premiums	(72.4		)
Liabilities for Income Taxes	(3.9		)
Accrued Expenses and Other Liabilities	(34.8		)
Total Purchase Price	$	71.0