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Schedule 2 - Parent Company Financial Statements
 12 Months Ended
Dec. 31, 2015
Parent Company Financial Statements [Abstract]  
Parent Company Financial Statements
SCHEDULE II
KEMPER CORPORATION
PARENT COMPANY BALANCE SHEETS
(Dollars in Millions)
 
 
 
December 31,
 
 
2015
 
2014
ASSETS
 
 
 
 
Investments in Subsidiaries
 
$
2,586.6

 
$
2,677.5

Fixed Maturities at Fair Value (Amortized Cost: 2015 – $15.1; 2014 – $12.2)
 
15.1

 
12.2

Equity Securities at Fair Value (Cost: 2015 – $11.1; 2014 – $21.9)
 
10.9

 
21.8

Fair Value Option Investments
 
164.5

 
53.3

Short-term Investments
 
134.8

 
225.1

Cash
 
15.9

 
17.9

Other Receivables
 
5.7

 
6.9

Current and Deferred Income Taxes
 
—

 
4.7

Other Assets
 
6.1

 
5.6

Total Assets
 
$
2,939.6

 
$
3,025.0

LIABILITIES AND SHAREHOLDERS’ EQUITY
 
 
 
 
Senior Notes Payable, 6.00% due 2017 (Fair Value: 2015 – $374.0; 2014 – $390.2)
 
$
359.1

 
$
358.5

Senior Notes Payable, 6.00% due 2015 (Fair Value: 2014 – $260.2)
 
—

 
249.5

Senior Notes Payable, 4.35% due 2025 (Fair Value: 2015 – $248.3)
 
247.4

 
—

Subordinated Debentures due 2054 (Fair Value: 2015 – $159.0; 2014 – $154.0)
 
144.1

 
144.1

Liabilities for Income Taxes
 
33.3

 
14.5

Liabilities for Benefit Plans
 
154.8

 
160.2

Accrued Expenses and Other Liabilities
 
8.5

 
7.5

Total Liabilities
 
947.2

 
934.3

Shareholders’ Equity:
 
 
 
 
Common Stock
 
5.1

 
5.2

Additional Paid-in Capital
 
654.0

 
660.1

Retained Earnings
 
1,209.0

 
1,202.7

Accumulated Other Comprehensive Income
 
124.3

 
222.7

Total Shareholders’ Equity
 
1,992.4

 
2,090.7

Total Liabilities and Shareholders’ Equity
 
$
2,939.6

 
$
3,025.0

See Accompanying Report of Independent Registered Public Accounting Firm.
 



KEMPER CORPORATION
PARENT COMPANY STATEMENTS OF INCOME
(Dollars in Millions)
 
 
 
For The Years Ended December 31,
 
 
2015
 
2014
 
2013
Net Investment Income
 
$
1.7

 
$
0.9

 
$
0.2

Net Realized Gains (Losses) on Sales of Investments
 
(0.1
)
 
(0.2
)
 
0.6

Net Impairment Losses Recognized in Earnings
 
(1.6
)
 
(1.7
)
 
—

Total Revenues
 
—

 
(1.0
)
 
0.8

Interest Expense
 
47.3

 
47.9

 
39.0

Loss from Early Extinguishment of Debt
 
9.1

 
—

 
—

Other Operating Expenses
 
17.6

 
2.7

 
21.6

Total Operating Expenses
 
74.0

 
50.6

 
60.6

Loss before Income Taxes and Equity in Net Income of Subsidiaries
 
(74.0
)
 
(51.6
)
 
(59.8
)
Income Tax Benefit
 
26.5

 
18.9

 
20.8

Loss before Equity in Net Income of Subsidiaries
 
(47.5
)
 
(32.7
)
 
(39.0
)
Equity in Net Income of Subsidiaries
 
133.2

 
147.2

 
256.7

Net Income
 
$
85.7

 
$
114.5

 
$
217.7

See Accompanying Report of Independent Registered Public Accounting Firm.


KEMPER CORPORATION
PARENT COMPANY STATEMENTS OF COMPREHENSIVE INCOME
(Dollars in Millions)
 
 
 
For The Years Ended December 31,
 
 
2015
 
2014
 
2013
Net Income
 
$
85.7

 
$
114.5

 
$
217.7

Other Comprehensive Income (Loss):
 
 
 
 
 
 
Unrealized Holding Gains (Losses) Arising During the Year:
 
 
 
 
 
 
Securities Held by Subsidiaries
 
(150.4
)
 
261.7

 
(324.9
)
Securities Held by Parent
 
(1.5
)
 
(2.0
)
 
—

Reclassification Adjustment for Amounts Included in Net Income:
 
 
 
 
 
 
Securities Held by Subsidiaries
 
(26.9
)
 
(26.8
)
 
(37.9
)
Securities Held by Parent
 
1.5

 
1.7

 
—

Unrealized Holding Gains (Losses)
 
(177.3
)
 
234.6

 
(362.8
)
Unrecognized Postretirement Benefit Costs Arising During the Year
 
3.0

 
(106.4
)
 
61.6

Amortization of Unrecognized Postretirement Benefit Costs
 
23.1

 
7.9

 
25.0

Net Unrecognized Postretirement Benefit Costs
 
26.1

 
(98.5
)
 
86.6

Foreign Currency Translation Adjustments
 
(1.4
)
 
(1.0
)
 
0.2

Reclassification Adjustment for Amounts Included in Net Income
 
—

 
—

 
—

Foreign Currency Translation Adjustments
 
(1.4
)
 
(1.0
)
 
0.2

Other Comprehensive Income (Loss) before Income Taxes
 
(152.6
)
 
135.1

 
(276.0
)
Income Tax Benefit (Expense):
 
 
 
 
 
 
Unrealized Holding Gains and Losses Arising During the Year:
 
 
 
 
 
 
Securities Held by Subsidiaries
 
53.4

 
(92.3
)
 
115.9

Securities Held by Parent
 
0.5

 
0.7

 
—

Reclassification Adjustment for Amounts Included in Net Income:
 
 
 
 
 
 
Securities Held by Subsidiaries
 
9.4

 
9.4

 
13.2

Securities Held by Parent
 
(0.5
)
 
(0.6
)
 
—

Unrealized Holding Gains and Losses
 
62.8

 
(82.8
)
 
129.1

Unrecognized Postretirement Benefit Costs Arising During the Year
 
(1.1
)
 
37.5

 
(21.6
)
Amortization of Unrecognized Postretirement Benefit Costs
 
(8.0
)
 
(2.8
)
 
(8.8
)
Net Unrecognized Postretirement Benefit Costs
 
(9.1
)
 
34.7

 
(30.4
)
Foreign Currency Translation Adjustments
 
0.5

 
0.4

 
(0.1
)
Reclassification Adjustment for Amounts Included in Net Income
 
—

 
—

 
—

Foreign Currency Translation Adjustments
 
0.5

 
0.4

 
(0.1
)
Income Tax Benefit (Expense)
 
54.2

 
(47.7
)
 
98.6

Other Comprehensive Income (Loss)
 
(98.4
)
 
87.4

 
(177.4
)
Total Comprehensive Income (Loss)
 
$
(12.7
)
 
$
201.9

 
$
40.3

See Accompanying Report of Independent Registered Public Accounting Firm.
 


KEMPER CORPORATION
PARENT COMPANY STATEMENTS OF CASH FLOWS
(Dollars in Millions)
 
 
 
For The Years Ended December 31,
 
 
2015
 
2014
 
2013
Operating Activities:
 
 
 
 
 
 
Net Income
 
$
85.7

 
$
114.5

 
$
217.7

Adjustment Required to Reconcile Net Income to Net Cash Provided by Operations:
 
 
 
 
 
 
Equity in Net Income of Subsidiaries
 
(133.2
)
 
(147.2
)
 
(256.7
)
Cash Dividends from Subsidiaries
 
285.0

 
159.1

 
95.0

Cash Contribution to Defined Benefit Plan
 
—

 
—

 
(55.0
)
Net Realized (Gains) Losses on Sales of Investments
 
0.1

 
0.2

 
(0.6
)
Net Impairment Losses Recognized in Earnings
 
1.6

 
1.7

 
—

Loss from Early Extinguishment of Debt
 
9.1

 
—

 
—

Other, Net
 
41.6

 
10.5

 
67.3

Net Cash Provided by Operating Activities
 
289.9

 
138.8

 
67.7

Investing Activities:
 
 
 
 
 
 
Capital Contributed to Subsidiary
 
(105.0
)
 
—

 
—

Capital Distribution from Subsidiary
 
—

 
1.1

 
50.5

Sales, Paydowns and Maturities of Fixed Maturities
 
11.8

 
11.5

 
—

Purchases of Fixed Maturities
 
(14.8
)
 
—

 
—

Sales of Equity Securities
 
9.4

 
15.1

 
—

Sales of Fair Value Option Investments
 
—

 
6.9

 
—

Purchases of Fair Value Option Investments
 
(111.0
)
 
(60.9
)
 
—

Acquisition of Business
 
(71.0
)
 
—

 
—

Change in Short-term Investments
 
90.3

 
(94.3
)
 
52.7

Net Cash Provided (Used) by Investing Activities
 
(190.3
)
 
(120.6
)
 
103.2

Financing Activities:
 
 
 
 
 
 
Net Proceeds from Issuance of Debt
 
247.3

 
144.0

 
—

Repayments of Debt
 
(258.8
)
 
—

 
—

Cash Dividends Paid
 
(49.7
)
 
(51.8
)
 
(54.9
)
Common Stock Repurchases
 
(45.0
)
 
(114.0
)
 
(100.4
)
Cash Exercise of Stock Options
 
3.9

 
0.5

 
1.7

Excess Tax Benefits on Share Based Awards
 
0.7

 
0.2

 
1.3

Net Cash Used by Financing Activities
 
(101.6
)
 
(21.1
)
 
(152.3
)
Increase (Decrease) in Cash
 
(2.0
)
 
(2.9
)
 
18.6

Cash, Beginning of Year
 
17.9

 
20.8

 
2.2

Cash, End of Year
 
$
15.9

 
$
17.9

 
$
20.8

See Accompanying Report of Independent Registered Public Accounting Firm.