Goodwill and Intangible Assets

12 Months Ended

Dec. 31, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

GOODWILL AND INTANGIBLE ASSETS

Goodwill balances by business segment at December 31, 2019 and 2018 were:



DOLLARS IN MILLIONS	2019		2018
Specialty Property & Casualty Insurance	$	845.0	$	843.4
Preferred Property & Casualty Insurance	49.6		49.6
Life & Health Insurance	219.4		219.4
Total	$	1,114.0	$	1,112.4

The Company tests goodwill for recoverability at the reporting unit level on an annual basis, or whenever events or circumstances indicate the fair value of a reporting unit may have declined below its carrying value. The Company performed a qualitative goodwill impairment assessment for all reporting units with goodwill as of October 1, 2019. The qualitative assessment takes into consideration changes in macroeconomic conditions, industry and market considerations, cost factors, overall financial performance, changes in management or key personnel, changes in strategy and changes in Kemper’s stock price since the last quantitative assessment, which was performed on January 1, 2017. Based on its qualitative assessment, the Company concluded that the associated goodwill was recoverable for each reporting unit tested.

Definite and indefinite life intangible assets at December 31, 2019 and 2018 were:



DOLLARS IN MILLIONS	2019		2018
Definite Life Intangible Assets:
Value of Business Acquired	$	24.1	$	30.2
Customer Relationships	4.3		6.7
Agent Relationships	62.5		68.0
Trade Names	—		7.0
Internal-Use Software	189.7		149.1
Total Definite Life Intangible Assets	280.6		261.0
Indefinite Life Intangible Assets:
Trade Names	5.2		5.2
Insurance Licenses	42.6		42.6
Total Indefinite Life Intangible Assets	47.8		47.8
Total Intangible Assets	$	328.4	$	308.8

The Company records intangible assets acquired in business combinations and certain costs incurred developing and customizing internal-use software within Other Assets on the Consolidated Balance Sheets. Definite life intangible assets are amortized over the estimated profit emergence period or estimated useful life of the asset. Indefinite life intangible assets are not amortized, but rather tested annually for impairment. In 2019 and 2018, the Company recognized amortization expense on definite life intangible assets of $37.8 million and $166.4 million, respectively.

NOTE 5. GOODWILL AND INTANGIBLE ASSETS (Continued)

The amount of amortization expense expected to be recorded in the next five years for definite life intangible assets is as follows:



DOLLARS IN MILLIONS	2020		2021		2022		2023		2024
Definite Life Intangible Assets:
Value of Business Acquired	$	4.0	$	3.1	$	2.7	$	2.5	$	2.4
Customer Relationships	0.9		0.8		0.6		0.5		0.4
Agent Relationships	5.0		5.0		5.0		5.0		5.0
Internal-Use Software	24.1		19.1		17.9		16.5		14.0
Total	$	34.0	$	28.0	$	26.2	$	24.5	$	21.8