Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 |
Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |||||||
(Address of principal executive offices) | (Zip Code) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
☒ | Accelerated filer | ☐ | Non-accelerated filer | ☐ | |||||||||||||
Smaller reporting company | Emerging growth company |
Page | |||||||||||
PART I. | |||||||||||
Item 1. | |||||||||||
Item 2. | |||||||||||
Item 3. | |||||||||||
Item 4. | |||||||||||
PART II. | |||||||||||
Item 1. | |||||||||||
Item 1A. | |||||||||||
Item 2. | |||||||||||
Item 5 | |||||||||||
Item 6. | |||||||||||
Nine Months Ended | Three Months Ended | |||||||||||||||||||||||||
Sep 30, 2023 | Sep 30, 20221 | Sep 30, 2023 | Sep 30, 20221 | |||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||
Earned Premiums (Changes in Deferred Profit Liability for the Nine and Three Months Ended: 2023 - $ | $ | $ | $ | $ | ||||||||||||||||||||||
Net Investment Income | ||||||||||||||||||||||||||
Change in Value of Alternative Energy Partnership Investments | ( | |||||||||||||||||||||||||
Other Income | ||||||||||||||||||||||||||
Income (Loss) from Change in Fair Value of Equity and Convertible Securities | ( | ( | ||||||||||||||||||||||||
Net Realized Investment (Losses) Gains | ( | ( | ( | |||||||||||||||||||||||
Impairment Gains (Losses) | ( | ( | ( | |||||||||||||||||||||||
Total Revenues | ||||||||||||||||||||||||||
Expenses: | ||||||||||||||||||||||||||
Policyholders’ Benefits and Incurred Losses and Loss Adjustment Expenses (Changes in Liability for Future Policyholder Benefits for the Nine and Three Months Ended: 2023 - $ | ||||||||||||||||||||||||||
Insurance Expenses | ||||||||||||||||||||||||||
Loss from Early Extinguishment of Debt | ||||||||||||||||||||||||||
Interest and Other Expenses | ||||||||||||||||||||||||||
Goodwill Impairment | ||||||||||||||||||||||||||
Total Expenses | ||||||||||||||||||||||||||
Loss before Income Taxes | ( | ( | ( | ( | ||||||||||||||||||||||
Income Tax Benefit | ||||||||||||||||||||||||||
Net Loss | ( | ( | ( | ( | ||||||||||||||||||||||
Less: Net Loss attributable to Noncontrolling Interest | ( | ( | ||||||||||||||||||||||||
Net Loss attributable to Kemper Corporation | $ | ( | $ | ( | $ | ( | $ | ( | ||||||||||||||||||
Net Loss attributable to Kemper Corporation per Unrestricted Share: | ||||||||||||||||||||||||||
Basic | $ | ( | $ | ( | $ | ( | $ | ( | ||||||||||||||||||
Diluted | $ | ( | $ | ( | $ | ( | $ | ( |
Nine Months Ended | Three Months Ended | |||||||||||||||||||||||||
Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2023 | Sep 30, 2022 | |||||||||||||||||||||||
Net Loss | $ | ( | $ | ( | $ | ( | $ | ( | ||||||||||||||||||
Other Comprehensive Income (Loss) Before Income Taxes | ||||||||||||||||||||||||||
Changes in Net Unrealized Holding Losses on Investment Securities with: | ||||||||||||||||||||||||||
No Credit Losses Recognized in Condensed Consolidated Statements of Loss | ( | ( | ( | ( | ||||||||||||||||||||||
Credit Losses Recognized in Condensed Consolidated Statements of Loss | ( | ( | ( | ( | ||||||||||||||||||||||
Change in Net Unrecognized Postretirement Benefit Costs | ( | ( | ||||||||||||||||||||||||
(Loss) Gain on Cash Flow Hedges | ( | |||||||||||||||||||||||||
Change in Discount Rate on Future Life Policyholder Benefits | ||||||||||||||||||||||||||
Other Comprehensive Income (Loss) Before Income Taxes | ( | ( | ||||||||||||||||||||||||
Other Comprehensive Income Tax (Expense) Benefit | ( | ( | ||||||||||||||||||||||||
Other Comprehensive Income (Loss), Net of Taxes | ( | ( | ||||||||||||||||||||||||
Total Comprehensive Loss | ( | ( | ( | ( | ||||||||||||||||||||||
Less: Net Loss attributable to Noncontrolling Interest | ( | ( | ||||||||||||||||||||||||
Less: Other Comprehensive Income attributable to Noncontrolling Interest | ||||||||||||||||||||||||||
Less: Total Comprehensive Loss attributable to Noncontrolling Interest | ( | ( | ||||||||||||||||||||||||
Comprehensive Loss attributable to Kemper Corporation | $ | ( | $ | ( | $ | ( | $ | ( |
Sep 30, 2023 | Dec 31, 20221 | ||||||||||
Assets: | |||||||||||
Investments: | |||||||||||
Fixed Maturities at Fair Value (Amortized Cost: 2023 - $ Allowance for Credit Losses: 2023 - $ | $ | $ | |||||||||
Equity Securities at Fair Value (Cost: 2023 - $ | |||||||||||
Equity Method Limited Liability Investments | |||||||||||
Alternative Energy Partnership Investments | |||||||||||
Short-term Investments at Cost which Approximates Fair Value | |||||||||||
Company-Owned Life Insurance | |||||||||||
Loans to Policyholders | |||||||||||
Other Investments | |||||||||||
Total Investments | |||||||||||
Cash | |||||||||||
Receivables from Policyholders (Allowance for Credit Losses: 2023 - $ | |||||||||||
Other Receivables | |||||||||||
Deferred Policy Acquisition Costs | |||||||||||
Goodwill | |||||||||||
Current Income Tax Assets | |||||||||||
Deferred Income Tax Assets | |||||||||||
Other Assets | |||||||||||
Assets of Consolidated Variable Interest Entity | |||||||||||
Fixed Maturities at Fair Value (Amortized Cost: 2023 - $ Allowance for Credit Losses: 2023 - $ | |||||||||||
Cash | |||||||||||
Receivables from Policyholders | |||||||||||
Other Assets | |||||||||||
Total Assets | $ | $ | |||||||||
Liabilities and Shareholders’ Equity: | |||||||||||
Insurance Reserves: | |||||||||||
Life and Health | $ | $ | |||||||||
Property and Casualty | |||||||||||
Total Insurance Reserves | |||||||||||
Unearned Premiums | |||||||||||
Policyholder Obligations | |||||||||||
Deferred Income Tax Liabilities | |||||||||||
Accrued Expenses and Other Liabilities | |||||||||||
Long-term Debt, Current and Non-current, at Amortized Cost (Fair Value: 2023 - $ | |||||||||||
Liabilities of Consolidated Variable Interest Entity | |||||||||||
Insurance Reserves | |||||||||||
Unearned Premiums | |||||||||||
Accrued Expenses and Other Liabilities | |||||||||||
Total Liabilities | |||||||||||
Kemper Corporation Shareholders’ Equity: | |||||||||||
Common Stock, $ | |||||||||||
Paid-in Capital | |||||||||||
Retained Earnings | |||||||||||
Accumulated Other Comprehensive Loss | ( | ( | |||||||||
Total Kemper Corporation Shareholders’ Equity | |||||||||||
Noncontrolling Interest | ( | ||||||||||
Total Shareholders’ Equity | |||||||||||
Total Liabilities and Shareholders’ Equity | $ | $ |
Nine Months Ended | |||||||||||
Sep 30, 2023 | Sep 30, 20221 | ||||||||||
Cash Flows from Operating Activities: | |||||||||||
Net Loss | $ | ( | $ | ( | |||||||
Adjustments to Reconcile Net Loss to Net Cash Used in Operating Activities | |||||||||||
Net Realized Investment Losses (Gains) | ( | ||||||||||
Impairment (Gains) Losses | ( | ||||||||||
Depreciation and Amortization of Property, Equipment and Software | |||||||||||
Amortization of Intangibles Assets Acquired | |||||||||||
Settlement Costs Related to Defined Benefit Pension Plan | |||||||||||
Loss from Early Extinguishment of Debt | |||||||||||
Change in Accumulated Undistributed Earnings of Equity Method Limited Liability Investments | ( | ( | |||||||||
(Income) Loss from Change in Value of Alternative Energy Partnership Investments | ( | ||||||||||
(Increase) Decrease in Value of Equity and Convertible Securities | ( | ||||||||||
Goodwill Impairment | |||||||||||
Changes in: | |||||||||||
Receivables from Policyholders | |||||||||||
Reinsurance Recoverables | ( | ||||||||||
Deferred Policy Acquisition Costs | |||||||||||
Insurance Reserves | ( | ||||||||||
Unearned Premiums | ( | ( | |||||||||
Income Taxes | ( | ||||||||||
Other Assets and Liabilities | ( | ||||||||||
Net Cash Used in Operating Activities | ( | ( | |||||||||
Cash Flows from Investing Activities: | |||||||||||
Proceeds from Sales, Calls and Maturities of Fixed Maturities | |||||||||||
Proceeds from the Sales or Paydowns of Investments: | |||||||||||
Equity Securities | |||||||||||
Mortgage Loans | |||||||||||
Other Investments | |||||||||||
Purchases of Investments: | |||||||||||
Fixed Maturities | ( | ( | |||||||||
Equity Securities | ( | ( | |||||||||
Real Estate Investments | ( | ( | |||||||||
Company-Owned Life Insurance | ( | ||||||||||
Mortgage Loans | ( | ( | |||||||||
Other Investments | ( | ( | |||||||||
Net Purchases of Short-term Investments | ( | ( | |||||||||
Sale of Businesses, Net of Cash Acquired | |||||||||||
Acquisition of Software and Long-lived Assets | ( | ( | |||||||||
Settlement Proceeds from Company-Owned Life Insurance | |||||||||||
Other | ( | ||||||||||
Net Cash Provided by (Used in) Investing Activities | ( |
Nine Months Ended | |||||||||||
Sep 30, 2023 | Sep 30, 20221 | ||||||||||
Net Cash Provided by (Used in) Investing Activities (Carryforward from page 7) | ( | ||||||||||
Cash Flows from Financing Activities: | |||||||||||
Repayment of Long-term Debt | ( | ||||||||||
Proceeds from Issuance of | |||||||||||
Issuance Fees on | ( | ||||||||||
Proceeds from Issuance of | |||||||||||
Issuance Fees on | ( | ||||||||||
Proceeds from Policyholder Contract Obligations | |||||||||||
Repayment of Policyholder Contract Obligations | ( | ( | |||||||||
Proceeds from Shares Issued under Employee Stock Purchase Plan | |||||||||||
Dividends Paid | ( | ( | |||||||||
Other | |||||||||||
Net Cash (Used in) Provided by Financing Activities | ( | ||||||||||
Net increase (decrease) in cash, Including Held-for-Sale | ( | ||||||||||
Cash at beginning of year, Including Held-for-Sale | |||||||||||
Cash at end of period, Including Held-for-Sale | |||||||||||
Net increase (decrease) in cash, Held-for-Sale | |||||||||||
Cash at beginning of year, Held-for-Sale | |||||||||||
Cash at end of period, Held-for-Sale | |||||||||||
Net (decrease) increase in cash | ( | ||||||||||
Cash, Beginning of Year | |||||||||||
Cash, End of Period | $ | $ |
Nine Months Ended September 30, 2023 | ||||||||||||||||||||||||||||||||||||||||||||
Number of Shares | Common Stock | Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive (Loss) Income | Noncontrolling Interest | Total Shareholders’ Equity | ||||||||||||||||||||||||||||||||||||||
Balance, December 31, 20221 | $ | $ | $ | $ | ( | $ | — | $ | ||||||||||||||||||||||||||||||||||||
Net Loss | — | — | — | ( | — | ( | ( | |||||||||||||||||||||||||||||||||||||
Other Comprehensive Income, Net of Taxes (Note 13) | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Cash Dividends and Dividend Equivalents to Shareholders ($ | — | — | — | ( | — | — | ( | |||||||||||||||||||||||||||||||||||||
Shares Issued Under Employee Stock Purchase Plan (Note 14) | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||
Equity-based Compensation Cost | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Equity-based Awards, Net of Shares Exchanged | ( | — | — | ( | ||||||||||||||||||||||||||||||||||||||||
Balance, September 30, 2023 | $ | $ | $ | $ | ( | $ | ( | $ |
Nine Months Ended September 30, 20221 | ||||||||||||||||||||||||||||||||||||||
Number of Shares | Common Stock | Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Total Shareholders’ Equity | |||||||||||||||||||||||||||||||||
Balance, December 31, 2021 | $ | $ | $ | $ | ( | $ | ||||||||||||||||||||||||||||||||
Net Loss | — | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||
Other Comprehensive Loss, Net of Taxes (Note 13) | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||
Cash Dividends and Dividend Equivalents to Shareholders ($ | — | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||
Shares Issued Under Employee Stock Purchase Plan (Note 14) | — | — | — | |||||||||||||||||||||||||||||||||||
Equity-based Compensation Cost | — | — | — | — | ||||||||||||||||||||||||||||||||||
Equity-based Awards, Net of Shares Exchanged | ( | ( | — | ( | ||||||||||||||||||||||||||||||||||
Balance, September 30, 2022 | $ | $ | $ | $ | ( | $ |
Three Months Ended September 30, 2023 | ||||||||||||||||||||||||||||||||||||||||||||
Number of Shares | Common Stock | Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive (Loss) Income | Noncontrolling Interest | Total Shareholders’ Equity | ||||||||||||||||||||||||||||||||||||||
Balance, June 30, 2023 | $ | $ | $ | $ | ( | $ | — | $ | ||||||||||||||||||||||||||||||||||||
Net Loss | — | — | — | ( | — | ( | ( | |||||||||||||||||||||||||||||||||||||
Other Comprehensive Income, Net of Taxes (Note 13) | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Cash Dividends and Dividend Equivalents to Shareholders ($ | — | — | — | ( | — | — | ( | |||||||||||||||||||||||||||||||||||||
Shares Issued Under Employee Stock Purchase Plan (Note 14) | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||
Equity-based Compensation Cost | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Equity-based Awards, Net of Shares Exchanged | ( | — | — | ( | ||||||||||||||||||||||||||||||||||||||||
Balance, September 30, 2023 | $ | $ | $ | $ | ( | $ | ( | $ |
Three Months Ended September 30, 20221 | ||||||||||||||||||||||||||||||||||||||
Number of Shares | Common Stock | Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Total Shareholders’ Equity | |||||||||||||||||||||||||||||||||
Balance, June 30, 2022 | $ | $ | $ | $ | ( | $ | ||||||||||||||||||||||||||||||||
Net Loss | — | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||
Other Comprehensive Loss, Net of Taxes (Note 13) | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||
Cash Dividends and Dividend Equivalents to Shareholders ($ | — | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||
Shares Issued Under Employee Stock Purchase Plan (Note 14) | — | — | — | |||||||||||||||||||||||||||||||||||
Equity-based Compensation Cost | — | — | — | — | ||||||||||||||||||||||||||||||||||
Equity-based Awards, Net of Shares Exchanged | — | |||||||||||||||||||||||||||||||||||||
Balance, September 30, 2022 | $ | $ | $ | $ | ( | $ |
Pre-Adoption Balance 12/31/2020 | Adjustments to AOCI | Adjustments to Retained Earnings | Post- Adoption Balance 1/1/2021 | |||||||||||||||||||||||
Retained Earnings | $ | ( | $ | |||||||||||||||||||||||
AOCI | $ | ( | $ | ( |
Prior to Adoption | Effect of Adoption | Post- Adoption Balance | ||||||||||||||||||
Earned Premiums | $ | ( | $ | |||||||||||||||||
Policyholders’ Benefits and Incurred Losses and Loss Adjustment Expenses | $ | ( | $ | |||||||||||||||||
Insurance Expenses | $ | $ | ||||||||||||||||||
Income Tax Benefit | $ | ( | $ | |||||||||||||||||
Net Loss attributable to Kemper Corporation | $ | ( | $ | ( | ||||||||||||||||
Net Loss Per Unrestricted Share attributable to Kemper Corporation: | ||||||||||||||||||||
Basic | $ | ( | $ | $ | ( | |||||||||||||||
Diluted | $ | ( | $ | $ | ( |
Prior to Adoption | Effect of Adoption | Post- Adoption Balance | ||||||||||||||||||
Earned Premiums | $ | ( | $ | |||||||||||||||||
Policyholders’ Benefits and Incurred Losses and Loss Adjustment Expenses | $ | ( | $ | |||||||||||||||||
Insurance Expenses | $ | ( | $ | |||||||||||||||||
Income Tax Benefit | $ | ( | $ | |||||||||||||||||
Net Loss attributable to Kemper Corporation | $ | ( | $ | ( | ||||||||||||||||
Net Loss Per Unrestricted Share attributable to Kemper Corporation: | ||||||||||||||||||||
Basic | $ | ( | $ | $ | ( | |||||||||||||||
Diluted | $ | ( | $ | $ | ( |
Prior to Adoption | Effect of Adoption | Post- Adoption Balance | ||||||||||||||||||
Deferred Policy Acquisition Costs | $ | $ | ||||||||||||||||||
Deferred Income Tax Assets | $ | ( | $ | |||||||||||||||||
Total Assets | $ | ( | $ | |||||||||||||||||
Life and Health Insurance Reserves | $ | ( | $ | |||||||||||||||||
Total Liabilities | $ | ( | $ | |||||||||||||||||
Retained Earnings | $ | ( | $ | |||||||||||||||||
Accumulated Other Comprehensive Loss | $ | ( | $ | ( | ||||||||||||||||
Total Shareholders’ Equity attributable to Kemper Corporation | $ | $ |
Prior to Adoption | Effect of Adoption | Post- Adoption Balance | ||||||||||||||||||
Change in Discount Rate on Future Life Policyholder Benefits | $ | $ | ||||||||||||||||||
Other Comprehensive Loss Before Income Taxes | $ | ( | $ | ( | ||||||||||||||||
Other Comprehensive Income Tax Benefit | $ | ( | $ | |||||||||||||||||
Other Comprehensive Loss, Net of Taxes | $ | ( | $ | ( | ||||||||||||||||
Total Comprehensive Loss | $ | ( | $ | ( |
Prior to Adoption | Effect of Adoption | Post- Adoption Balance | ||||||||||||||||||
Change in Discount Rate on Future Life Policyholder Benefits | $ | $ | ||||||||||||||||||
Other Comprehensive Loss Before Income Taxes | $ | ( | $ | ( | ||||||||||||||||
Other Comprehensive Income Tax Benefit | $ | ( | $ | |||||||||||||||||
Other Comprehensive Loss, Net of Taxes | $ | ( | $ | ( | ||||||||||||||||
Total Comprehensive Loss | $ | ( | $ | ( |
Prior to Adoption | Effect of Adoption | Post- Adoption Balance | ||||||||||||||||||
Cash Flows from Operating Activities: | ||||||||||||||||||||
Net Loss | $ | ( | $ | ( | ||||||||||||||||
Change in Deferred Policy Acquisition Costs | $ | $ | ||||||||||||||||||
Change in Insurance Reserves | $ | ( | ( | $ | ( | |||||||||||||||
Change in Income Taxes | $ | ( | $ | ( | ||||||||||||||||
Net Cash Used in Operating Activities | $ | ( | $ | ( |
Nine Months Ended | Three Months Ended | |||||||||||||||||||||||||
(Dollars in Millions, except per share amounts) | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2023 | Sep 30, 2022 | ||||||||||||||||||||||
Net Loss attributable to Kemper Corporation | $ | ( | $ | ( | $ | ( | $ | ( | ||||||||||||||||||
Less: Net Loss Attributed to Participating Awards | ||||||||||||||||||||||||||
Net Loss Attributed to Unrestricted Shares | ( | ( | ( | ( | ||||||||||||||||||||||
Dilutive Effect on Income of Equity-based Compensation Equivalent Shares | ||||||||||||||||||||||||||
Diluted Net Loss Attributed to Unrestricted Shares | $ | ( | $ | ( | $ | ( | $ | ( | ||||||||||||||||||
(Number of Shares in Thousands) | ||||||||||||||||||||||||||
Weighted-average Unrestricted Shares Outstanding | ||||||||||||||||||||||||||
Equity-based Compensation Equivalent Shares | ||||||||||||||||||||||||||
Weighted-average Unrestricted Shares and Equivalent Shares Outstanding Assuming Dilution | ||||||||||||||||||||||||||
Net Loss attributable to Kemper Corporation per Unrestricted Share: | ||||||||||||||||||||||||||
(Per Unrestricted Share in Whole Dollars) | ||||||||||||||||||||||||||
Basic Net Loss Per Unrestricted Share | $ | ( | $ | ( | $ | ( | $ | ( | ||||||||||||||||||
Diluted Net Loss Per Unrestricted Share | $ | ( | $ | ( | $ | ( | $ | ( |
Nine Months Ended | Three Months Ended | |||||||||||||||||||||||||
(Dollars in Millions) | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2023 | Sep 30, 2022 | ||||||||||||||||||||||
Specialty Property & Casualty Insurance: | ||||||||||||||||||||||||||
Personal Automobile | $ | $ | $ | $ | ||||||||||||||||||||||
Commercial Automobile | ||||||||||||||||||||||||||
Life Insurance: | ||||||||||||||||||||||||||
Life | ||||||||||||||||||||||||||
Accident and Health | ||||||||||||||||||||||||||
Property | ||||||||||||||||||||||||||
Total Segment Earned Premiums | $ | $ | $ | $ | ||||||||||||||||||||||
Non-Core Operations | ||||||||||||||||||||||||||
Total Earned Premiums | $ | $ | $ | $ |
Nine Months Ended | Three Months Ended | |||||||||||||||||||||||||
(Dollars in Millions) | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2023 | Sep 30, 2022 | ||||||||||||||||||||||
Segment Revenues: | ||||||||||||||||||||||||||
Specialty Property & Casualty Insurance: | ||||||||||||||||||||||||||
Earned Premiums | $ | $ | $ | $ | ||||||||||||||||||||||
Net Investment Income | ||||||||||||||||||||||||||
Change in Value of Alternative Energy Partnership Investments | ( | |||||||||||||||||||||||||
Other Income | ||||||||||||||||||||||||||
Total Specialty Property & Casualty Insurance | ||||||||||||||||||||||||||
Life Insurance: | ||||||||||||||||||||||||||
Earned Premiums | ||||||||||||||||||||||||||
Net Investment Income | ||||||||||||||||||||||||||
Change in Value of Alternative Energy Partnership Investments | ( | |||||||||||||||||||||||||
Other (Loss) Income | ( | ( | ( | |||||||||||||||||||||||
Total Life Insurance | ||||||||||||||||||||||||||
Total Segment Revenues | ||||||||||||||||||||||||||
Income (Loss) from Change in Fair Value of Equity and Convertible Securities | ( | ( | ||||||||||||||||||||||||
Net Realized Investment (Losses) Gains | ( | ( | ( | |||||||||||||||||||||||
Net Impairment Gains (Losses) Recognized in Earnings | ( | ( | ( | |||||||||||||||||||||||
Non-Core Operations | ||||||||||||||||||||||||||
Other | ||||||||||||||||||||||||||
Total Revenues | $ | $ | $ | $ |
Nine Months Ended | Three Months Ended | |||||||||||||||||||||||||
(Dollars in Millions) | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2023 | Sep 30, 2022 | ||||||||||||||||||||||
Segment Adjusted Operating (Loss) Income: | ||||||||||||||||||||||||||
Specialty Property & Casualty Insurance | $ | ( | $ | ( | $ | ( | $ | ( | ||||||||||||||||||
Life Insurance | ||||||||||||||||||||||||||
Total Segment Adjusted Operating Loss | ( | ( | ( | ( | ||||||||||||||||||||||
Corporate and Other Adjusted Operating Loss From: | ||||||||||||||||||||||||||
Other | ( | ( | ( | ( | ||||||||||||||||||||||
Corporate and Other Adjusted Operating Loss | ( | ( | ( | ( | ||||||||||||||||||||||
Adjusted Consolidated Operating Loss | ( | ( | ( | ( | ||||||||||||||||||||||
Income (Loss) from Change in Fair Value of Equity and Convertible Securities | ( | ( | ||||||||||||||||||||||||
Net Realized Investment (Losses) Gains | ( | ( | ( | |||||||||||||||||||||||
Impairment Gains (Losses) | ( | ( | ( | |||||||||||||||||||||||
Acquisition and Disposition Related Transaction, Integration, Restructuring and Other Costs | ( | ( | ( | ( | ||||||||||||||||||||||
Debt Extinguishment, Pension Settlement and Other Charges | ( | ( | ( | |||||||||||||||||||||||
Goodwill Impairment Charge | ( | |||||||||||||||||||||||||
Non-Core Operations | ( | ( | ( | ( | ||||||||||||||||||||||
Loss before Income Taxes attributable to Kemper Corporation | $ | ( | $ | ( | $ | ( | $ | ( | ||||||||||||||||||
Loss before Income Taxes Noncontrolling Interest | ( | ( | ||||||||||||||||||||||||
Loss before Income Taxes | $ | ( | $ | ( | $ | ( | $ | ( |
Nine Months Ended | Three Months Ended | |||||||||||||||||||||||||
(Dollars in Millions and Net of Income Taxes) | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2023 | Sep 30, 2022 | ||||||||||||||||||||||
Segment Adjusted Net Operating (Loss) Income: | ||||||||||||||||||||||||||
Specialty Property & Casualty Insurance | $ | ( | $ | ( | $ | ( | $ | ( | ||||||||||||||||||
Life Insurance | ||||||||||||||||||||||||||
Total Segment Adjusted Net Operating Loss | ( | ( | ( | ( | ||||||||||||||||||||||
Corporate and Other Adjusted Net Operating Loss From: | ||||||||||||||||||||||||||
Other | ( | ( | ( | ( | ||||||||||||||||||||||
Total Corporate and Other Adjusted Net Operating Loss | ( | ( | ( | ( | ||||||||||||||||||||||
Adjusted Consolidated Net Operating Loss | ( | ( | ( | ( | ||||||||||||||||||||||
Net Income (Loss) From: | ||||||||||||||||||||||||||
Change in Fair Value of Equity and Convertible Securities | ( | ( | ||||||||||||||||||||||||
Net Realized Investment (Losses) Gains | ( | ( | ( | |||||||||||||||||||||||
Impairment Gains (Losses) | ( | ( | ( | |||||||||||||||||||||||
Acquisition and Disposition Related Transaction, Integration, Restructuring and Other Costs | ( | ( | ( | ( | ||||||||||||||||||||||
Debt Extinguishment, Pension Settlement and Other Charges | ( | ( | ( | |||||||||||||||||||||||
Goodwill Impairment Charge | ( | |||||||||||||||||||||||||
Non-Core Operations | ( | ( | ( | ( | ||||||||||||||||||||||
Net Loss attributable to Kemper Corporation | $ | ( | $ | ( | $ | ( | $ | ( | ||||||||||||||||||
Net Loss Noncontrolling Interest | ( | ( | ||||||||||||||||||||||||
Net Loss | $ | ( | $ | ( | $ | ( | $ | ( |
Nine Months Ended | ||||||||||||||
(Dollars in Millions) | Sep 30, 2023 | Sep 30, 2022 | ||||||||||||
Property and Casualty Insurance Reserves: | ||||||||||||||
Gross of Reinsurance at Beginning of Year | $ | $ | ||||||||||||
Less Reinsurance Recoverables at Beginning of Year | ||||||||||||||
Property and Casualty Insurance Reserves, Net of Reinsurance at Beginning of Year | ||||||||||||||
Incurred Losses and Loss Adjustment Expenses (“ LAE”) Related to: | ||||||||||||||
Current Year | ||||||||||||||
Prior Years | ( | |||||||||||||
Total Incurred Losses and LAE | ||||||||||||||
Paid Losses and LAE Related to: | ||||||||||||||
Current Year | ||||||||||||||
Prior Years | ||||||||||||||
Total Paid Losses and LAE | ||||||||||||||
Property and Casualty Insurance Reserves, Net of Reinsurance at End of Period | ||||||||||||||
Plus Reinsurance Recoverables at End of Period | ||||||||||||||
Property and Casualty Insurance Reserves, Gross of Reinsurance at End of Period | $ | $ |
(Dollars in Millions) | Receivables from Policyholders, Net of Allowance for Expected Credit Losses | Allowance for Expected Credit Losses | ||||||||||||
Balance at Beginning of Year | $ | $ | ||||||||||||
Provision for Expected Credit Losses | ||||||||||||||
Write-offs of Uncollectible Receivables from Policyholders | ( | |||||||||||||
Balance at End of Period | $ | $ |
(Dollars in Millions) | Receivables from Policyholders, Net of Allowance for Expected Credit Losses | Allowance for Expected Credit Losses | ||||||||||||
Balance at Beginning of Year | $ | $ | ||||||||||||
Provision for Expected Credit Losses | ||||||||||||||
Write-offs of Uncollectible Receivables from Policyholders | ( | |||||||||||||
Balance at End of Period | $ | $ |
Nine Months Ended | Three Months Ended | |||||||||||||||||||||||||
Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2023 | Sep 30, 2022 | |||||||||||||||||||||||
Present Value of Expected Net Premiums | Balance, Beginning of Period | $ | $ | $ | $ | |||||||||||||||||||||
Beginning Balance at Original Discount Rate | $ | $ | $ | $ | ||||||||||||||||||||||
Effect of Changes in Cash Flow Assumptions | ||||||||||||||||||||||||||
Effect of Actual Variances from Expected Experience | ( | ( | ( | |||||||||||||||||||||||
Adjusted Beginning of Period Balance | ||||||||||||||||||||||||||
Issuances | ||||||||||||||||||||||||||
Interest Accrual | ||||||||||||||||||||||||||
Net Premiums Collected | ( | ( | ( | ( | ||||||||||||||||||||||
Ending Balance at Original Discount Rate | ||||||||||||||||||||||||||
Effect of Changes in Discount Rate Assumptions | ( | ( | ( | ( | ||||||||||||||||||||||
Balance, End of Period | $ | $ | $ | $ | ||||||||||||||||||||||
Present Value of Expected Future Policyholder Benefits | Balance, Beginning of Period | $ | $ | $ | $ | |||||||||||||||||||||
Beginning Balance at Original Discount Rate | $ | $ | $ | $ | ||||||||||||||||||||||
Effect of Changes in Cash Flow Assumptions | ||||||||||||||||||||||||||
Effect of Actual Variances From Expected Experience | ( | ( | ( | |||||||||||||||||||||||
Adjusted Beginning of Period Balance | ||||||||||||||||||||||||||
Issuances | ||||||||||||||||||||||||||
Interest Accrual | ||||||||||||||||||||||||||
Benefit Payments | ( | ( | ( | ( | ||||||||||||||||||||||
Ending Balance at Original Discount Rate | ||||||||||||||||||||||||||
Effect of Changes in Discount Rate Assumptions | ( | ( | ( | ( | ||||||||||||||||||||||
Balance, End of Period | $ | $ | $ | $ | ||||||||||||||||||||||
Net Liability for Future Policyholder Benefits | $ | $ | $ | $ | ||||||||||||||||||||||
Less: Reinsurance Recoverable | ||||||||||||||||||||||||||
Net Liability for Future Policyholder Benefits, After Reinsurance Recoverable | $ | $ | $ | $ |
Sep 30, 2023 | Sep 30, 2022 | ||||||||||
Weighted-Average Liability Duration of the Liability for Future Policyholder Benefits (Years) |
Sep 30, 2023 | Sep 30, 2022 | ||||||||||
Net Liability for Future Policyholder Benefits | |||||||||||
Deferred Profit Liability | |||||||||||
Other1 | |||||||||||
Total Life and Health Insurance Reserves | $ | $ |
Sep 30, 2023 | Sep 30, 2022 | ||||||||||
Expected Future Benefit Payments, undiscounted | $ | $ | |||||||||
Expected Future Gross Premiums, undiscounted | $ | $ | |||||||||
Expected Future Gross Premiums, discounted | $ | $ |
Nine Months Ended | Three Months Ended | |||||||||||||||||||||||||
Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2023 | Sep 30, 2022 | |||||||||||||||||||||||
Gross Premiums or Assessments | $ | $ | $ | $ | ||||||||||||||||||||||
Interest Expense | $ | $ | $ | $ |
Sep 30, 2023 | Sep 30, 2022 | ||||||||||
Interest Accretion Rate | % | % | |||||||||
Current Discount Rate | % | % |
Sep 30, 2023 | Sep 30, 2022 | |||||||||||||||||||||||||||||||||||||
Property and Casualty | Life and Health | Total | Property and Casualty | Life and Health | Total | |||||||||||||||||||||||||||||||||
Balance, Beginning of Year | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
Capitalizations | ||||||||||||||||||||||||||||||||||||||
Amortization Expense | ( | ( | ( | ( | ( | ( | ||||||||||||||||||||||||||||||||
Experience Adjustment | ( | ( | ( | ( | ||||||||||||||||||||||||||||||||||
Balance | ||||||||||||||||||||||||||||||||||||||
Less: | ||||||||||||||||||||||||||||||||||||||
Deferred Policy Acquisition Costs Asset Held-for-Sale | — | — | — | — | ||||||||||||||||||||||||||||||||||
Balance, End of Period | $ | 199.1 | $ | 423.1 | $ | 622.2 | $ | 244.5 | $ | 400.6 | $ | 645.1 |
Amortized Cost | Gross Unrealized | Allowance for Expected Credit Losses | Fair Value | |||||||||||||||||||||||||||||
(Dollars in Millions) | Gains | Losses | ||||||||||||||||||||||||||||||
U.S. Government and Government Agencies and Authorities | $ | $ | $ | ( | $ | $ | ||||||||||||||||||||||||||
States and Political Subdivisions | ( | ( | ||||||||||||||||||||||||||||||
Foreign Governments | ( | |||||||||||||||||||||||||||||||
Corporate Securities: | ||||||||||||||||||||||||||||||||
Bonds and Notes | ( | ( | ||||||||||||||||||||||||||||||
Redeemable Preferred Stocks | ( | |||||||||||||||||||||||||||||||
Collateralized Loan Obligations | ( | |||||||||||||||||||||||||||||||
Other Mortgage- and Asset-backed | ( | |||||||||||||||||||||||||||||||
Investments in Fixed Maturities | $ | $ | $ | ( | $ | ( | $ |
Amortized Cost | Gross Unrealized | Allowance for Expected Credit Losses | Fair Value | |||||||||||||||||||||||||||||
(Dollars in Millions) | Gains | Losses | ||||||||||||||||||||||||||||||
U.S. Government and Government Agencies and Authorities | $ | $ | $ | ( | $ | $ | ||||||||||||||||||||||||||
States and Political Subdivisions | ( | ( | ||||||||||||||||||||||||||||||
Foreign Governments | ( | |||||||||||||||||||||||||||||||
Corporate Securities: | ||||||||||||||||||||||||||||||||
Bonds and Notes | ( | ( | ||||||||||||||||||||||||||||||
Redeemable Preferred Stocks | ( | |||||||||||||||||||||||||||||||
Collateralized Loan Obligations | ( | |||||||||||||||||||||||||||||||
Other Mortgage- and Asset-backed | ( | |||||||||||||||||||||||||||||||
Investments in Fixed Maturities | $ | $ | $ | ( | $ | ( | $ |
(Dollars in Millions) | Amortized Cost | Fair Value | ||||||||||||
Due in One Year or Less | $ | $ | ||||||||||||
Due after One Year to Five Years | ||||||||||||||
Due after Five Years to Ten Years | ||||||||||||||
Due after Ten Years | ||||||||||||||
Mortgage- and Asset-backed Securities Not Due at a Single Maturity Date | ||||||||||||||
Investments in Fixed Maturities | $ | $ |
Less Than 12 Months | 12 Months or Longer | Total | ||||||||||||||||||||||||||||||||||||
(Dollars in Millions) | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | ||||||||||||||||||||||||||||||||
Fixed Maturities: | ||||||||||||||||||||||||||||||||||||||
U.S. Government and Government Agencies and Authorities | $ | $ | ( | $ | $ | ( | $ | $ | ( | |||||||||||||||||||||||||||||
States and Political Subdivisions | ( | ( | ( | |||||||||||||||||||||||||||||||||||
Foreign Governments | ( | ( | ||||||||||||||||||||||||||||||||||||
Corporate Securities: | ||||||||||||||||||||||||||||||||||||||
Bonds and Notes | ( | ( | ( | |||||||||||||||||||||||||||||||||||
Redeemable Preferred Stocks | ( | ( | ||||||||||||||||||||||||||||||||||||
Collateralized Loan Obligations | ( | ( | ( | |||||||||||||||||||||||||||||||||||
Other Mortgage- and Asset-backed | ( | ( | ( | |||||||||||||||||||||||||||||||||||
Total Fixed Maturities | $ | $ | ( | $ | $ | ( | $ | $ | ( | |||||||||||||||||||||||||||||
Less Than 12 Months | 12 Months or Longer | Total | ||||||||||||||||||||||||||||||||||||
(Dollars in Millions) | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | ||||||||||||||||||||||||||||||||
Fixed Maturities: | ||||||||||||||||||||||||||||||||||||||
U.S. Government and Government Agencies and Authorities | $ | $ | ( | $ | $ | ( | $ | $ | ( | |||||||||||||||||||||||||||||
States and Political Subdivisions | ( | ( | ( | |||||||||||||||||||||||||||||||||||
Foreign Governments | ( | ( | ||||||||||||||||||||||||||||||||||||
Corporate Securities: | ||||||||||||||||||||||||||||||||||||||
Bonds and Notes | ( | ( | ( | |||||||||||||||||||||||||||||||||||
Redeemable Preferred Stocks | ( | ( | ||||||||||||||||||||||||||||||||||||
Collateralized Loan Obligations | ( | ( | ( | |||||||||||||||||||||||||||||||||||
Other Mortgage- and Asset-backed | ( | ( | ( | |||||||||||||||||||||||||||||||||||
Total Fixed Maturities | $ | $ | ( | $ | $ | ( | $ | $ | ( | |||||||||||||||||||||||||||||
States and Political Subdivisions | Corporate Bonds and Notes | Total | ||||||||||||||||||
(Dollars in Millions) | ||||||||||||||||||||
Beginning of the Year | $ | $ | $ | |||||||||||||||||
Additions for Securities for which No Previous Expected Credit Losses were Recognized | ||||||||||||||||||||
Reduction Due to Sales | ( | ( | ( | |||||||||||||||||
Net Increase (Decrease) in Allowance on Securities for which Expected Credit Losses were Previously Recognized | ( | ( | ||||||||||||||||||
Write-offs Charged Against Allowance | ||||||||||||||||||||
End of the Period | $ | $ | $ |
States and Political Subdivisions | Corporate Bonds and Notes | Total | ||||||||||||||||||
(Dollars in Millions) | ||||||||||||||||||||
Beginning of the Year | $ | $ | $ | |||||||||||||||||
Additions for Securities for which No Previous Expected Credit Losses were Recognized | ||||||||||||||||||||
Net Increase in Allowance on Securities for which Expected Credit Losses were Previously Recognized | ||||||||||||||||||||
Write-offs Charged Against Allowance | ( | ( | ||||||||||||||||||
End of the Period | $ | $ | $ |
(Dollars in Millions) | Sep 30, 2023 | Dec 31, 2022 | ||||||||||||
Equity Securities at Modified Cost | $ | $ | ||||||||||||
Convertible Securities at Fair Value | ||||||||||||||
Real Estate at Depreciated Cost | ||||||||||||||
Mortgage Loans | ||||||||||||||
Other | ||||||||||||||
Total | $ | $ |
Nine Months Ended | Three Months Ended | |||||||||||||||||||||||||
(Dollars in Millions) | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2023 | Sep 30, 2022 | ||||||||||||||||||||||
Investment Income: | ||||||||||||||||||||||||||
Interest on Fixed Income Securities | $ | $ | $ | $ | ||||||||||||||||||||||
Dividends on Equity Securities Excluding Alternative Investments | ||||||||||||||||||||||||||
Alternative Investments: | ||||||||||||||||||||||||||
Equity Method Limited Liability Investments | ( | |||||||||||||||||||||||||
Limited Liability Investments Included in Equity Securities | ||||||||||||||||||||||||||
Total Alternative Investments | ||||||||||||||||||||||||||
Short-term Investments | ||||||||||||||||||||||||||
Loans to Policyholders | ||||||||||||||||||||||||||
Real Estate | ||||||||||||||||||||||||||
Company-Owned Life Insurance | ||||||||||||||||||||||||||
Other | ||||||||||||||||||||||||||
Total Investment Income | ||||||||||||||||||||||||||
Investment Expenses: | ||||||||||||||||||||||||||
Real Estate | ||||||||||||||||||||||||||
Other Investment Expenses | ||||||||||||||||||||||||||
Total Investment Expenses | ||||||||||||||||||||||||||
Net Investment Income | $ | $ | $ | $ |
Nine Months Ended | Three Months Ended | |||||||||||||||||||||||||
(Dollars in Millions) | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2023 | Sep 30, 2022 | ||||||||||||||||||||||
Fixed Maturities: | ||||||||||||||||||||||||||
Gains on Sales | $ | $ | $ | $ | ||||||||||||||||||||||
Losses on Sales | ( | ( | ( | ( | ||||||||||||||||||||||
(Losses) Gains on Hedging Activity | ( | ( | ( | |||||||||||||||||||||||
September 30, 2023 | December 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||
(Dollars in Millions) | Fair Value | Fair Value | ||||||||||||||||||||||||||||||||||||||||||
Derivative Instrument | Primary Underlying Risk Exposure | Gross Notional Amount | Assets | Liabilities | Gross Notional Amount | Assets | Liabilities | |||||||||||||||||||||||||||||||||||||
Derivatives Designated as Hedging Instruments: | ||||||||||||||||||||||||||||||||||||||||||||
Interest Swap Lock | Interest Rate Risk | $ | $ | — | $ | $ | $ | — | $ | |||||||||||||||||||||||||||||||||||
Derivatives Not Designated or Not Qualifying as Hedging Instruments: | ||||||||||||||||||||||||||||||||||||||||||||
Treasury Futures | Interest Rate Risk | $ | $ | — | $ | $ | $ | — | $ | — | ||||||||||||||||||||||||||||||||||
Reverse Treasury Lock | Interest Rate Risk | $ | $ | — | $ | — | $ | $ | $ | — |
Fair Value Measurements | ||||||||||||||||||||||||||||||||
(Dollars in Millions) | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Measured at Net Asset Value | Total Fair Value | |||||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||||||||
Fixed Maturities: | ||||||||||||||||||||||||||||||||
U.S. Government and Government Agencies and Authorities | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
States and Political Subdivisions | ||||||||||||||||||||||||||||||||
Foreign Governments | ||||||||||||||||||||||||||||||||
Corporate Securities: | ||||||||||||||||||||||||||||||||
Bonds and Notes | ||||||||||||||||||||||||||||||||
Redeemable Preferred Stock | ||||||||||||||||||||||||||||||||
Collateralized Loan Obligations | ||||||||||||||||||||||||||||||||
Other Mortgage and Asset-backed | ||||||||||||||||||||||||||||||||
Total Investments in Fixed Maturities | ||||||||||||||||||||||||||||||||
Equity Securities at Fair Value: | ||||||||||||||||||||||||||||||||
Preferred Stocks: | ||||||||||||||||||||||||||||||||
Finance, Insurance and Real Estate | ||||||||||||||||||||||||||||||||
Other Industries | ||||||||||||||||||||||||||||||||
Common Stocks: | ||||||||||||||||||||||||||||||||
Finance, Insurance and Real Estate | ||||||||||||||||||||||||||||||||
Other Industries | ||||||||||||||||||||||||||||||||
Other Equity Interests: | ||||||||||||||||||||||||||||||||
Exchange Traded Funds | ||||||||||||||||||||||||||||||||
Limited Liability Companies and Limited Partnerships | ||||||||||||||||||||||||||||||||
Total Investments in Equity Securities at Fair Value | ||||||||||||||||||||||||||||||||
Other Investments: | ||||||||||||||||||||||||||||||||
Convertible Securities at Fair Value | ||||||||||||||||||||||||||||||||
Total Assets | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||||||||
Accrued Expenses and Other Liabilities: | ||||||||||||||||||||||||||||||||
Derivative Instruments Not Designated as Cash Flow Hedges | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
Total Liabilities | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
Fair Value Measurements | ||||||||||||||||||||||||||||||||
(Dollars in Millions) | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Measured at Net Asset Value | Total Fair Value | |||||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||||||||
Fixed Maturities: | ||||||||||||||||||||||||||||||||
U.S. Government and Government Agencies and Authorities | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
States and Political Subdivisions | ||||||||||||||||||||||||||||||||
Foreign Governments | ||||||||||||||||||||||||||||||||
Corporate Securities: | ||||||||||||||||||||||||||||||||
Bonds and Notes | ||||||||||||||||||||||||||||||||
Redeemable Preferred Stocks | ||||||||||||||||||||||||||||||||
Collateralized Loan Obligations | ||||||||||||||||||||||||||||||||
Other Mortgage and Asset-backed | ||||||||||||||||||||||||||||||||
Total Investments in Fixed Maturities | ||||||||||||||||||||||||||||||||
Equity Securities at Fair Value: | ||||||||||||||||||||||||||||||||
Preferred Stocks: | ||||||||||||||||||||||||||||||||
Finance, Insurance and Real Estate | ||||||||||||||||||||||||||||||||
Other Industries | ||||||||||||||||||||||||||||||||
Common Stocks: | ||||||||||||||||||||||||||||||||
Finance, Insurance and Real Estate | ||||||||||||||||||||||||||||||||
Other Industries | ||||||||||||||||||||||||||||||||
Other Equity Interests: | ||||||||||||||||||||||||||||||||
Exchange Traded Funds | ||||||||||||||||||||||||||||||||
Limited Liability Companies and Limited Partnerships | ||||||||||||||||||||||||||||||||
Total Investments in Equity Securities at Fair Value | ||||||||||||||||||||||||||||||||
Other Investments: | ||||||||||||||||||||||||||||||||
Convertible Securities at Fair Value | ||||||||||||||||||||||||||||||||
Other Assets: | ||||||||||||||||||||||||||||||||
Derivative Instruments Not Designated as Hedges | ||||||||||||||||||||||||||||||||
Total Assets | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||||||||
Accrued Expenses and Other Liabilities: | ||||||||||||||||||||||||||||||||
Derivative Instruments Designated as Fair Value Hedges | $ | $ | ( | $ | $ | $ | ( | |||||||||||||||||||||||||
Total Liabilities | $ | $ | ( | $ | $ | $ | ( |
(Dollars in Millions) | Unobservable Input | Total Fair Value | Range of Unobservable Inputs | Weighted-average Yield | ||||||||||||||||||||||||||||
Investment-grade | Market Yield | $ | % | - | % | % | ||||||||||||||||||||||||||
Non-investment-grade: | ||||||||||||||||||||||||||||||||
Senior Debt | Market Yield | - | ||||||||||||||||||||||||||||||
Junior Debt | Market Yield | - | ||||||||||||||||||||||||||||||
Other | Various | |||||||||||||||||||||||||||||||
Total Level 3 Fixed Maturity Investments | $ |
(Dollars in Millions) | Unobservable Input | Total Fair Value | Range of Unobservable Inputs | Weighted-average Yield | ||||||||||||||||||||||||||||
Investment-grade | Market Yield | $ | % | - | % | % | ||||||||||||||||||||||||||
Non-investment-grade: | ||||||||||||||||||||||||||||||||
Senior Debt | Market Yield | - | ||||||||||||||||||||||||||||||
Junior Debt | Market Yield | - | ||||||||||||||||||||||||||||||
Other | Various | |||||||||||||||||||||||||||||||
Total Level 3 Fixed Maturity Investments | $ |
Fixed Maturities | Equity Securities | |||||||||||||||||||||||||||||||||||||
(Dollars in Millions) | Corporate Bonds and Notes | States and Political Sub- divisions | Redeemable Preferred Stocks | Other Mortgage- and Asset- backed | Preferred and Common Stocks | Total | ||||||||||||||||||||||||||||||||
Balance at Beginning of Year | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
Total Gains (Losses): | ||||||||||||||||||||||||||||||||||||||
Included in Condensed Consolidated Statements of Loss | ||||||||||||||||||||||||||||||||||||||
Included in Other Comprehensive Income | ( | ( | ( | |||||||||||||||||||||||||||||||||||
Purchases | ||||||||||||||||||||||||||||||||||||||
Settlements | ||||||||||||||||||||||||||||||||||||||
Sales | ( | ( | ||||||||||||||||||||||||||||||||||||
Transfers into Level 3 | ||||||||||||||||||||||||||||||||||||||
Transfers out of Level 3 | ( | ( | ||||||||||||||||||||||||||||||||||||
Balance at End of Period | $ | $ | $ | $ | $ | $ |
Fixed Maturities | Equity Securities | |||||||||||||||||||||||||||||||||||||
(Dollars in Millions) | Corporate Bonds and Notes | States and Political Sub- divisions | Redeemable Preferred Stocks | Other Mortgage- and Asset- backed | Preferred and Common Stocks | Total | ||||||||||||||||||||||||||||||||
Balance at Beginning of Period | $ | $ | — | $ | $ | $ | $ | |||||||||||||||||||||||||||||||
Total Gains (Losses): | ||||||||||||||||||||||||||||||||||||||
Included in Condensed Consolidated Statements of Loss | ||||||||||||||||||||||||||||||||||||||
Included in Other Comprehensive Income | ( | ( | ( | ( | ||||||||||||||||||||||||||||||||||
Purchases | ||||||||||||||||||||||||||||||||||||||
Settlements | ||||||||||||||||||||||||||||||||||||||
Sales | ( | ( | ||||||||||||||||||||||||||||||||||||
Transfers into Level 3 | ||||||||||||||||||||||||||||||||||||||
Transfers out of Level 3 | ||||||||||||||||||||||||||||||||||||||
Balance at End of Period | $ | $ | $ | $ | $ | $ |
Fixed Maturities | Equity Securities | |||||||||||||||||||||||||||||||
(Dollars in Millions) | Corporate Bonds and Notes | Redeemable Preferred Stocks | Other Mortgage- and Asset- backed | Preferred and Common Stocks | Total | |||||||||||||||||||||||||||
Balance at Beginning of Year | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
Total (Losses) Gains: | ||||||||||||||||||||||||||||||||
Included in Condensed Consolidated Statements of Loss | ( | ( | ||||||||||||||||||||||||||||||
Included in Other Comprehensive Loss | ( | ( | ( | ( | ||||||||||||||||||||||||||||
Purchases | ||||||||||||||||||||||||||||||||
Settlements | ||||||||||||||||||||||||||||||||
Sales | ( | ( | ( | |||||||||||||||||||||||||||||
Transfers into Level 3 | ||||||||||||||||||||||||||||||||
Transfers out of Level 3 | ( | ( | ||||||||||||||||||||||||||||||
Balance at End of Period | $ | $ | $ | $ | $ |
Fixed Maturities | Equity Securities | |||||||||||||||||||||||||||||||
(Dollars in Millions) | Corporate Bonds and Notes | Redeemable Preferred Stocks | Other Mortgage- and Asset- backed | Preferred and Common Stocks | Total | |||||||||||||||||||||||||||
Balance at Beginning of Period | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
Total (Losses) Gains: | ||||||||||||||||||||||||||||||||
Included in Condensed Consolidated Statements of Loss | ( | ( | ||||||||||||||||||||||||||||||
Included in Other Comprehensive Loss | ( | ( | ( | ( | ||||||||||||||||||||||||||||
Purchases | ||||||||||||||||||||||||||||||||
Settlements | ||||||||||||||||||||||||||||||||
Sales | ( | ( | ( | |||||||||||||||||||||||||||||
Transfers into Level 3 | ||||||||||||||||||||||||||||||||
Transfers out of Level 3 | ||||||||||||||||||||||||||||||||
Balance at End of Period | $ | $ | $ | $ | $ |
September 30, 2023 | December 31, 2022 | |||||||||||||||||||||||||
Asset Class | Fair Value Using NAV | Unfunded Commitments | Fair Value Using NAV | Unfunded Commitments | ||||||||||||||||||||||
Reported as Equity Method Limited Liability Investments at Cost Plus Cumulative Undistributed Earnings: | ||||||||||||||||||||||||||
Mezzanine Debt | $ | $ | $ | $ | ||||||||||||||||||||||
Senior Debt | ||||||||||||||||||||||||||
Distressed Debt | ||||||||||||||||||||||||||
Secondary Transactions | ||||||||||||||||||||||||||
Hedge Fund | ||||||||||||||||||||||||||
Leveraged Buyout | ||||||||||||||||||||||||||
Growth Equity | ||||||||||||||||||||||||||
Real Estate | ||||||||||||||||||||||||||
Other | ||||||||||||||||||||||||||
Total Equity Method Limited Liability Investments | ||||||||||||||||||||||||||
Alternative Energy Partnership Investments | ||||||||||||||||||||||||||
Reported as Other Equity Interests at Fair Value: | ||||||||||||||||||||||||||
Mezzanine Debt | ||||||||||||||||||||||||||
Senior Debt | ||||||||||||||||||||||||||
Distressed Debt | ||||||||||||||||||||||||||
Secondary Transactions | ||||||||||||||||||||||||||
Hedge Funds | ||||||||||||||||||||||||||
Leveraged Buyout | ||||||||||||||||||||||||||
Growth Equity | ||||||||||||||||||||||||||
Real Estate | ||||||||||||||||||||||||||
Other | ||||||||||||||||||||||||||
Total Reported as Other Equity Interests at Fair Value | ||||||||||||||||||||||||||
Reported as Equity Securities at Modified Cost: | ||||||||||||||||||||||||||
Other | ||||||||||||||||||||||||||
Total Reported as Equity Securities at Modified Cost | ||||||||||||||||||||||||||
Total Investments in Limited Liability Companies and Limited Partnerships | $ | $ | $ | $ |
Asset Class | Investment Category Includes | |||||||
Mezzanine Debt | Funds with investments in junior or subordinated debt and potentially minority equity securities issued by private companies. | |||||||
Senior Debt | Funds with investments in senior or first lien debt and potentially minority equity securities typically issued by private companies. | |||||||
Distressed Debt | Funds with debt or minority equity investments that are made opportunistically in companies that are in or near default or under financial strain with potential to have an active role in restructuring company. | |||||||
Secondary Transactions | Funds that focus on purchasing third party fund interests from investors seeking liquidity within their own portfolio. | |||||||
Hedge Fund | Funds that focus primarily on investing in public securities with strategy of generating uncorrelated returns to the public markets. | |||||||
Leveraged Buyout | Funds with control equity investments in more mature, positive cash flowing, private companies that are typically purchased with the use of financial leverage. | |||||||
Growth Equity | Funds that invest in early or venture stage companies with high growth potential with view towards generating realizations through sale or initial public offering (“IPO”) of company. | |||||||
Real Estate | Funds with investments in multi-family housing properties. | |||||||
Other | Consists of direct investments of preferred equity or minority common equity investments into private companies structured as limited partnerships or limited liability companies. |
September 30, 2023 | December 31, 2022 | |||||||||||||||||||||||||
(Dollars in Millions) | Carrying Value | Fair Value | Carrying Value | Fair Value | ||||||||||||||||||||||
Financial Assets: | ||||||||||||||||||||||||||
Loans to Policyholders | $ | $ | $ | $ | ||||||||||||||||||||||
Short-term Investments | ||||||||||||||||||||||||||
Mortgage Loans | ||||||||||||||||||||||||||
Company-Owned Life Insurance | ||||||||||||||||||||||||||
Equity Securities at Modified Cost | ||||||||||||||||||||||||||
Financial Liabilities: | ||||||||||||||||||||||||||
Long-term Debt | $ | $ | $ | $ | ||||||||||||||||||||||
Policyholder Obligations |
Nine Months Ended | Three Months Ended | |||||||||||||||||||||||||
(Dollars in millions) | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2023 | Sep 30, 2022 | ||||||||||||||||||||||
Fundings | $ | $ | $ | $ | ||||||||||||||||||||||
Cash Distribution from Investment | ||||||||||||||||||||||||||
Income (Loss) on Investments in Alternative Energy Partnership | ( | |||||||||||||||||||||||||
Income Tax (Recaptures) Credits Recognized | ( | |||||||||||||||||||||||||
Tax (Expense) Benefit Recognized from Alternative Energy Partnership | ( | ( | ( |
(Dollars in millions) | Sep 30, 2023 | Dec 31, 2022 | ||||||||||||
Cash | $ | $ | ||||||||||||
Equipment, Net of Depreciation | ||||||||||||||
Other Assets | ||||||||||||||
Total Unconsolidated Assets | ||||||||||||||
Maximum Loss Exposure |
(Dollars in Millions) | Net Unrealized Losses on Other Investments | Net Unrealized Losses on Investments with an Allowance for Credit Losses | Net Unrecognized Postretirement Benefit Costs | Gain on Cash Flow Hedge | Change in Discount Rate on Future Life Policyholder Benefits | Total | ||||||||||||||||||||||||||||||||
Balance as of January 1, 2023 | $ | ( | $ | ( | $ | ( | $ | $ | ( | |||||||||||||||||||||||||||||
Other Comprehensive (Loss) Income Before Reclassifications | ( | ( | ( | |||||||||||||||||||||||||||||||||||
Amounts Reclassified from Accumulated Other Comprehensive Loss Net of Tax (Expense) Benefit of $( | ( | ( | ||||||||||||||||||||||||||||||||||||
Other Comprehensive (Loss) Income Net of Tax Benefit (Expense) of $ | ( | ( | ( | |||||||||||||||||||||||||||||||||||
Balance as of September 30, 2023 | $ | ( | $ | ( | $ | $ | $ | $ | ( |
(Dollars in Millions) | Net Unrealized Gains (Losses) on Other Investments | Net Unrealized Losses on Investments with an Allowance for Credit Losses | Net Unrecognized Postretirement Benefit Costs | (Loss) Gain on Cash Flow Hedge | Change in Discount Rate on Future Life Policyholder Benefits | Total | ||||||||||||||||||||||||||||||||
Balance as of January 1, 2022 | $ | $ | ( | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||||||||||||||
Other Comprehensive (Loss) Income Before Reclassifications | ( | ( | ( | |||||||||||||||||||||||||||||||||||
Amounts Reclassified from Accumulated Other Comprehensive Loss Net of Tax Benefit of $ | ( | ( | ( | |||||||||||||||||||||||||||||||||||
Other Comprehensive (Loss) Income Net of Tax Benefit (Expense) of $ | ( | ( | ( | ( | ||||||||||||||||||||||||||||||||||
Balance as of September 30, 2022 | $ | ( | $ | ( | $ | ( | $ | $ | $ | ( |
(Dollars in Millions) | Net Unrealized Losses on Other Investments | Net Unrealized Losses on Investments with an Allowance for Credit Losses | Net Unrecognized Postretirement Benefit Costs | Gain on Cash Flow Hedge | Change in Discount Rate on Future Life Policyholder Benefits | Total | ||||||||||||||||||||||||||||||||
Balance as of June 30, 2023 | $ | ( | $ | ( | $ | ( | $ | $ | $ | ( | ||||||||||||||||||||||||||||
Other Comprehensive (Loss) Income Before Reclassifications | ( | ( | ( | ( | ||||||||||||||||||||||||||||||||||
Amounts Reclassified from Accumulated Other Comprehensive Loss Net of Tax Benefit (Expense) of $ | ( | |||||||||||||||||||||||||||||||||||||
Other Comprehensive (Loss) Income Net of Tax Benefit (Expense) of $ | ( | ( | ||||||||||||||||||||||||||||||||||||
Balance as of September 30, 2023 | $ | ( | $ | ( | $ | $ | $ | $ | ( |
(Dollars in Millions) | Net Unrealized Losses on Other Investments | Net Unrealized Losses on Investments with an Allowance for Credit Losses | Net Unrecognized Postretirement Benefit Costs | Gain on Cash Flow Hedge | Change in Discount Rate on Future Life Policyholder Benefits | Total | ||||||||||||||||||||||||||||||||
Balance as of June 30, 2022 | $ | ( | $ | ( | $ | ( | $ | $ | $ | ( | ||||||||||||||||||||||||||||
Other Comprehensive (Loss) Income Before Reclassifications | ( | ( | ( | |||||||||||||||||||||||||||||||||||
Amounts Reclassified from Accumulated Other Comprehensive Loss Net of Tax Benefit of $4.3, $ | ( | ( | ( | |||||||||||||||||||||||||||||||||||
Other Comprehensive (Loss) Income Net of Tax Benefit (Expense) of $ | ( | ( | ( | ( | ||||||||||||||||||||||||||||||||||
Balance as of September 30, 2022 | $ | ( | $ | ( | $ | ( | $ | $ | $ | ( |
Components of AOCI | Consolidated Statements of Loss Line Item Affected by Reclassifications | ||||
Net Unrealized Gains (Losses) on Other Investments and Net Unrealized Gains (Losses) on Investments with an Allowance for Credit Losses | Net Realized Investment (Losses) Gains and Impairment Gains (Losses) | ||||
Net Unrecognized Postretirement Benefit Costs | Policyholders’ Benefits and Incurred Losses and Loss Adjustment Expenses, Insurance Expenses, and Interest and Other Expenses | ||||
(Loss) Gain on Cash Flow Hedges | Interest and Other Expenses | ||||
Change in Discount Rate on Future Life Policyholder Benefits | Not Applicable |
Nine Months Ended | Three Months Ended | |||||||||||||||||||||||||
(Dollars in Millions) | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2023 | Sep 30, 2022 | ||||||||||||||||||||||
Interest Cost on Projected Benefit Obligation | $ | $ | $ | $ | ||||||||||||||||||||||
Expected Return on Plan Assets | ( | ( | ( | ( | ||||||||||||||||||||||
Amortization of Prior Service Cost | ||||||||||||||||||||||||||
Amortization of Net Actuarial Loss | ||||||||||||||||||||||||||
Pension Settlement Expense | ||||||||||||||||||||||||||
Total Pension Expense | $ | $ | $ | $ | ||||||||||||||||||||||
Nine Months Ended | Three Months Ended | |||||||||||||||||||||||||
(Dollars in Millions) | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2023 | Sep 30, 2022 | ||||||||||||||||||||||
Service Cost | $ | $ | $ | $ | ||||||||||||||||||||||
Interest Cost on Accumulated Postretirement Benefit Obligation | ||||||||||||||||||||||||||
Amortization of Prior Service Credit | ( | ( | ( | ( | ||||||||||||||||||||||
Amortization of Net Gain | ( | ( | ( | ( | ||||||||||||||||||||||
Total OPEB Benefit | $ | ( | $ | ( | $ | ( | $ | ( |
(Dollars in Millions) | Sep 30, 2023 | Dec 31, 2022 | ||||||||||||
FHLB Funding Agreements | $ | $ | ||||||||||||
Universal Life-type Policyholder Account Balances | ||||||||||||||
Total | $ | $ |
(Dollars in Millions) | Sep 30, 2023 | Dec 31, 2022 | ||||||||||||
Liability under Funding Agreements | $ | $ | ||||||||||||
Fair Value of Collateral Pledged | ||||||||||||||
FHLB of Chicago Common Stock Owned at Cost |
(Dollars in Millions) | Sep 30, 2023 | Dec 31, 2022 | ||||||||||||
Senior Notes: | ||||||||||||||
$ | $ | |||||||||||||
Total Long-term Debt Outstanding | $ | $ |
(Dollars in Millions) | Sep 30, 2023 | Dec 31, 2022 | ||||||||||||
Operating Lease Right-of-Use Assets | $ | $ | ||||||||||||
Operating Lease Liabilities |
Nine Months Ended | Three Months Ended | |||||||||||||||||||||||||
(Dollars in Millions) | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2023 | Sep 30, 2022 | ||||||||||||||||||||||
Lease Cost: | ||||||||||||||||||||||||||
Operating Lease Cost | $ | $ | $ | $ | ||||||||||||||||||||||
Variable Lease Cost | ||||||||||||||||||||||||||
Short-Term Lease Cost1 | ( | |||||||||||||||||||||||||
Total Lease Expense | $ | $ | $ | $ | ||||||||||||||||||||||
Less: Sub-Lease Income | ||||||||||||||||||||||||||
Total Lease Cost | $ | $ | $ | $ | ||||||||||||||||||||||
Nine Months Ended | ||||||||||||||
(Dollars in Millions) | Sep 30, 2023 | Sep 30, 2022 | ||||||||||||
Operating Cash Flows from Operating Lease (Fixed Payments) | $ | $ | ||||||||||||
Operating Cash Flows from Operating Lease (Liability Reduction) | ||||||||||||||
Right-of-Use Assets Obtained in Exchange for New Operating Lease Liabilities |
Nine Months Ended | ||||||||||||||
Sep 30, 2023 | Sep 30, 2022 | |||||||||||||
Weighted-average Remaining Lease Term - Finance Leases | N/A | |||||||||||||
Weighted-average Remaining Lease Term - Operating Leases | ||||||||||||||
Weighted-average Discount Rate - Finance Leases | N/A | % | ||||||||||||
Weighted-average Discount Rate - Operating Leases | % | % |
(Dollars in Millions) | Sep 30, 2023 | |||||||
Remainder of 2023 | $ | |||||||
2024 | ||||||||
2025 | ||||||||
2026 | ||||||||
2027 | ||||||||
2028 and Thereafter | ||||||||
Total Future Payments | $ | |||||||
Less Imputed Interest | ||||||||
Present Value of Minimum Lease Payments | $ |
Nine Months Ended | Three Months Ended | |||||||||||||||||||||||||||||||||||||
(Dollars in Millions and Net of Income Taxes) | Sep 30, 2023 | Sep 30, 2022 | Change | Sep 30, 2023 | Sep 30, 2022 | Change | ||||||||||||||||||||||||||||||||
Net Loss | $ | (323.6) | $ | (233.3) | $ | (90.3) | $ | (146.4) | $ | (74.8) | $ | (71.6) | ||||||||||||||||||||||||||
Less: Net Loss Attributable to Noncontrolling Interest | (0.1) | — | (0.1) | (0.1) | — | (0.1) | ||||||||||||||||||||||||||||||||
Net Loss attributable to Kemper Corporation | (323.5) | (233.3) | (90.2) | (146.3) | (74.8) | (71.5) | ||||||||||||||||||||||||||||||||
Less: | ||||||||||||||||||||||||||||||||||||||
Income (Loss) from Change in Fair Value of Equity and Convertible Securities | 5.5 | (63.1) | 68.6 | 2.3 | (8.8) | 11.1 | ||||||||||||||||||||||||||||||||
Net Realized Investment (Losses) Gains | (30.3) | 0.3 | (30.6) | (22.9) | (9.6) | (13.3) | ||||||||||||||||||||||||||||||||
Impairment Gains (Losses) | 0.1 | (17.5) | 17.6 | (0.8) | (6.6) | 5.8 | ||||||||||||||||||||||||||||||||
Acquisition and Disposition Related Transaction, Integration, Restructuring and Other Costs | (80.5) | (32.2) | (48.3) | (34.2) | (20.7) | (13.5) | ||||||||||||||||||||||||||||||||
Debt Extinguishment, Pension Settlement, and Other Charges | (55.5) | (2.9) | (52.6) | (55.5) | — | (55.5) | ||||||||||||||||||||||||||||||||
Goodwill Impairment Charge | (45.5) | — | (45.5) | — | — | — | ||||||||||||||||||||||||||||||||
Non-Core Operations | $ | (19.5) | $ | (25.0) | $ | 5.5 | $ | (7.3) | $ | (2.1) | $ | (5.2) | ||||||||||||||||||||||||||
Adjusted Consolidated Net Operating Loss | $ | (97.8) | $ | (92.9) | $ | (4.9) | $ | (27.9) | $ | (27.0) | $ | (0.9) | ||||||||||||||||||||||||||
Components of Adjusted Consolidated Net Operating Loss: | ||||||||||||||||||||||||||||||||||||||
Segment Adjusted Net Operating (Loss) Income: | ||||||||||||||||||||||||||||||||||||||
Specialty Property & Casualty Insurance | $ | (102.4) | $ | (112.3) | $ | 9.9 | $ | (33.2) | $ | (28.7) | $ | (4.5) | ||||||||||||||||||||||||||
Life Insurance | 36.8 | 45.8 | (9.0) | 14.7 | 14.0 | 0.7 | ||||||||||||||||||||||||||||||||
Total Segment Adjusted Net Operating Loss | (65.6) | (66.5) | 0.9 | (18.5) | (14.7) | (3.8) | ||||||||||||||||||||||||||||||||
Corporate and Other Adjusted Net Operating Loss From: | ||||||||||||||||||||||||||||||||||||||
Other | (32.2) | (26.4) | (5.8) | (9.4) | (12.3) | 2.9 | ||||||||||||||||||||||||||||||||
Total Corporate and Other Adjusted Net Operating Loss | (32.2) | (26.4) | (5.8) | (9.4) | (12.3) | 2.9 | ||||||||||||||||||||||||||||||||
Adjusted Consolidated Net Operating Loss | $ | (97.8) | $ | (92.9) | $ | (4.9) | $ | (27.9) | $ | (27.0) | $ | (0.9) |
Nine Months Ended | Three Months Ended | |||||||||||||||||||||||||
(Dollars in Millions) | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2023 | Sep 30, 2022 | ||||||||||||||||||||||
Net Premiums Written | $ | 2,585.7 | $ | 3,012.1 | $ | 733.0 | $ | 968.5 | ||||||||||||||||||
Earned Premiums | $ | 2,766.9 | $ | 3,064.8 | $ | 890.4 | $ | 999.5 | ||||||||||||||||||
Net Investment Income | 125.7 | 102.8 | 42.7 | 33.9 | ||||||||||||||||||||||
Change in Value of Alternative Energy Partnership Investments | 1.3 | (10.6) | 0.5 | 0.3 | ||||||||||||||||||||||
Other Income | 3.2 | 5.0 | 1.6 | 2.3 | ||||||||||||||||||||||
Total Revenues | 2,897.1 | 3,162.0 | 935.2 | 1,036.0 | ||||||||||||||||||||||
Incurred Losses and LAE related to: | ||||||||||||||||||||||||||
Current Year: | ||||||||||||||||||||||||||
Non-catastrophe Losses and LAE | 2,301.4 | 2,709.9 | 712.1 | 868.0 | ||||||||||||||||||||||
Catastrophe Losses and LAE | 32.0 | 23.1 | 6.2 | 14.8 | ||||||||||||||||||||||
Prior Years: | ||||||||||||||||||||||||||
Non-catastrophe Losses and LAE | 135.4 | (24.8) | 78.8 | (6.6) | ||||||||||||||||||||||
Catastrophe Losses and LAE | (2.4) | 0.7 | (1.0) | 0.2 | ||||||||||||||||||||||
Total Incurred Losses and LAE | 2,466.4 | 2,708.9 | 796.1 | 876.4 | ||||||||||||||||||||||
Insurance Expenses | 563.6 | 603.5 | 182.3 | 198.8 | ||||||||||||||||||||||
Segment Adjusted Operating Loss | (132.9) | (150.4) | (43.2) | (39.2) | ||||||||||||||||||||||
Income Tax Benefit | 30.5 | 38.1 | 10.0 | 10.5 | ||||||||||||||||||||||
Total Segment Adjusted Net Operating Loss | $ | (102.4) | $ | (112.3) | $ | (33.2) | $ | (28.7) | ||||||||||||||||||
Ratios Based On Earned Premiums | ||||||||||||||||||||||||||
Current Year Non-catastrophe Losses and LAE Ratio | 83.1 | % | 88.4 | % | 80.0 | % | 86.9 | % | ||||||||||||||||||
Current Year Catastrophe Losses and LAE Ratio | 1.2 | 0.8 | 0.7 | 1.5 | ||||||||||||||||||||||
Prior Years Non-catastrophe Losses and LAE Ratio | 4.9 | (0.8) | 8.8 | (0.7) | ||||||||||||||||||||||
Prior Years Catastrophe Losses and LAE Ratio | (0.1) | — | (0.1) | — | ||||||||||||||||||||||
Total Incurred Loss and LAE Ratio | 89.1 | 88.4 | 89.4 | 87.7 | ||||||||||||||||||||||
Insurance Expense Ratio | 20.4 | 19.7 | 20.5 | 19.9 | ||||||||||||||||||||||
Combined Ratio | 109.5 | % | 108.1 | % | 109.9 | % | 107.6 | % | ||||||||||||||||||
Underlying Combined Ratio | ||||||||||||||||||||||||||
Current Year Non-catastrophe Losses and LAE Ratio | 83.1 | % | 88.4 | % | 80.0 | % | 86.9 | % | ||||||||||||||||||
Insurance Expense Ratio | 20.4 | 19.7 | 20.5 | 19.9 | ||||||||||||||||||||||
Underlying Combined Ratio | 103.5 | % | 108.1 | % | 100.5 | % | 106.8 | % | ||||||||||||||||||
Non-GAAP Measure Reconciliation | ||||||||||||||||||||||||||
Combined Ratio | 109.5 | % | 108.1 | % | 109.9 | % | 107.6 | % | ||||||||||||||||||
Less: | ||||||||||||||||||||||||||
Current Year Catastrophe Losses and LAE Ratio | 1.2 | 0.8 | 0.7 | 1.5 | ||||||||||||||||||||||
Prior Years Non-catastrophe Losses and LAE Ratio | 4.9 | (0.8) | 8.8 | (0.7) | ||||||||||||||||||||||
Prior Years Catastrophe Losses and LAE Ratio | (0.1) | — | (0.1) | — | ||||||||||||||||||||||
Underlying Combined Ratio | 103.5 | % | 108.1 | % | 100.5 | % | 106.8 | % |
(Dollars in Millions) | Sep 30, 2023 | Dec 31, 2022 | ||||||||||||
Insurance Reserves: | ||||||||||||||
Personal Automobile | $ | 1,761.6 | $ | 1,875.8 | ||||||||||
Commercial Automobile | 570.3 | 445.3 | ||||||||||||
Insurance Reserves | $ | 2,331.9 | $ | 2,321.1 | ||||||||||
Insurance Reserves: | ||||||||||||||
Loss and Allocated LAE Reserves: | ||||||||||||||
Case and Allocated LAE | $ | 1,048.0 | $ | 1,099.9 | ||||||||||
Incurred But Not Reported | 1,107.7 | 1,041.2 | ||||||||||||
Total Loss and LAE Reserves | 2,155.7 | 2,141.1 | ||||||||||||
Unallocated LAE Reserves | 176.2 | 180.0 | ||||||||||||
Insurance Reserves | $ | 2,331.9 | $ | 2,321.1 |
Nine Months Ended | Three Months Ended | |||||||||||||||||||||||||
(Dollars in Millions) | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2023 | Sep 30, 2022 | ||||||||||||||||||||||
Net Premiums Written | $ | 2,113.7 | $ | 2,542.3 | $ | 583.9 | $ | 805.2 | ||||||||||||||||||
Earned Premiums | $ | 2,278.5 | $ | 2,666.3 | $ | 724.0 | $ | 858.8 | ||||||||||||||||||
Incurred Losses and LAE related to: | ||||||||||||||||||||||||||
Current Year: | ||||||||||||||||||||||||||
Non-catastrophe Losses and LAE | $ | 1,919.8 | $ | 2,414.1 | $ | 583.5 | $ | 757.8 | ||||||||||||||||||
Catastrophe Losses and LAE | 27.7 | 20.9 | 5.0 | 13.1 | ||||||||||||||||||||||
Prior Years: | ||||||||||||||||||||||||||
Non-catastrophe Losses and LAE | 113.2 | (32.2) | 71.8 | (6.7) | ||||||||||||||||||||||
Catastrophe Losses and LAE | (2.3) | 0.6 | (0.9) | 0.1 | ||||||||||||||||||||||
Total Incurred Losses and LAE | $ | 2,058.4 | $ | 2,403.4 | $ | 659.4 | $ | 764.3 | ||||||||||||||||||
Ratios Based On Earned Premiums | ||||||||||||||||||||||||||
Current Year Non-catastrophe Losses and LAE Ratio | 84.2 | % | 90.5 | % | 80.6 | % | 88.3 | % | ||||||||||||||||||
Current Year Catastrophe Losses and LAE Ratio | 1.2 | 0.8 | 0.7 | 1.5 | ||||||||||||||||||||||
Prior Years Non-catastrophe Losses and LAE Ratio | 5.0 | (1.2) | 9.9 | (0.8) | ||||||||||||||||||||||
Prior Years Catastrophe Losses and LAE Ratio | (0.1) | — | (0.1) | — | ||||||||||||||||||||||
Total Incurred Loss and LAE Ratio | 90.3 | % | 90.1 | % | 91.1 | % | 89.0 | % |
Nine Months Ended | Three Months Ended | |||||||||||||||||||||||||
(Dollars in Millions) | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2023 | Sep 30, 2022 | ||||||||||||||||||||||
Net Premiums Written | $ | 472.0 | $ | 469.8 | $ | 149.1 | $ | 163.3 | ||||||||||||||||||
Earned Premiums | $ | 488.4 | $ | 398.5 | $ | 166.4 | $ | 140.7 | ||||||||||||||||||
Incurred Losses and LAE related to: | ||||||||||||||||||||||||||
Current Year: | ||||||||||||||||||||||||||
Non-catastrophe Losses and LAE | $ | 381.6 | $ | 295.8 | $ | 128.6 | $ | 110.2 | ||||||||||||||||||
Catastrophe Losses and LAE | 4.3 | 2.2 | 1.2 | 1.7 | ||||||||||||||||||||||
Prior Years: | ||||||||||||||||||||||||||
Non-catastrophe Losses and LAE | 22.2 | 7.4 | 7.0 | 0.1 | ||||||||||||||||||||||
Catastrophe Losses and LAE | (0.1) | 0.1 | (0.1) | 0.1 | ||||||||||||||||||||||
Total Incurred Losses and LAE | $ | 408.0 | $ | 305.5 | $ | 136.7 | $ | 112.1 | ||||||||||||||||||
Ratios Based On Earned Premiums | ||||||||||||||||||||||||||
Current Year Non-catastrophe Losses and LAE Ratio | 78.1 | % | 74.2 | % | 77.4 | % | 78.3 | % | ||||||||||||||||||
Current Year Catastrophe Losses and LAE Ratio | 0.9 | 0.6 | 0.7 | 1.2 | ||||||||||||||||||||||
Prior Years Non-catastrophe Losses and LAE Ratio | 4.5 | 1.9 | 4.2 | 0.1 | ||||||||||||||||||||||
Prior Years Catastrophe Losses and LAE Ratio | — | — | (0.1) | 0.1 | ||||||||||||||||||||||
Total Incurred Loss and LAE Ratio | 83.5 | % | 76.7 | % | 82.2 | % | 79.7 | % |
Nine Months Ended | Three Months Ended | |||||||||||||||||||||||||
(Dollars in Millions) | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2023 | Sep 30, 2022 | ||||||||||||||||||||||
Earned Premiums | $ | 303.6 | $ | 428.9 | $ | 102.1 | $ | 142.1 | ||||||||||||||||||
Net Investment Income | 146.3 | 163.9 | 49.4 | 52.6 | ||||||||||||||||||||||
Changes in Value of Alternative Energy Partnership Investments | 0.6 | (5.6) | 0.2 | 0.1 | ||||||||||||||||||||||
Other (Loss) Income | (0.4) | (0.8) | (0.1) | — | ||||||||||||||||||||||
Total Revenues | 450.1 | 586.4 | 151.6 | 194.8 | ||||||||||||||||||||||
Policyholders’ Benefits and Incurred Losses and LAE | 202.9 | 272.7 | 64.7 | 88.5 | ||||||||||||||||||||||
Insurance Expenses | 204.8 | 262.2 | 69.4 | 90.7 | ||||||||||||||||||||||
Segment Adjusted Operating Income | 42.4 | 51.5 | 17.5 | 15.6 | ||||||||||||||||||||||
Income Tax Expense | (5.6) | (5.7) | (2.8) | (1.6) | ||||||||||||||||||||||
Total Segment Adjusted Net Operating Income | $ | 36.8 | $ | 45.8 | $ | 14.7 | $ | 14.0 |
(Dollars in Millions) | Sep 30, 2023 | Dec 31, 2022 | ||||||||||||
Insurance Reserves: | ||||||||||||||
Future Policyholder Benefits | $ | 3,048.7 | $ | 3,218.5 | ||||||||||
Incurred Losses and LAE Reserves: | ||||||||||||||
Life | 44.6 | 53.3 | ||||||||||||
Accident and Health | 4.8 | 4.3 | ||||||||||||
Property | 2.7 | 2.3 | ||||||||||||
Total Incurred Losses and LAE Reserves | 52.1 | 59.9 | ||||||||||||
Insurance Reserves | $ | 3,100.8 | $ | 3,278.4 |
Nine Months Ended | Three Months Ended | |||||||||||||||||||||||||
(Dollars in Millions) | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2023 | Sep 30, 2022 | ||||||||||||||||||||||
Earned Premiums | $ | 251.9 | $ | 253.8 | $ | 84.9 | $ | 84.3 | ||||||||||||||||||
Net Investment Income | 145.1 | 159.0 | 49.0 | 51.0 | ||||||||||||||||||||||
Changes in Value of Alternative Energy Partnership Investments | 0.6 | (5.2) | 0.2 | 0.1 | ||||||||||||||||||||||
Other (Loss) Income | (0.5) | (1.2) | — | (0.1) | ||||||||||||||||||||||
Total Revenues | 397.1 | 406.4 | 134.1 | 135.3 | ||||||||||||||||||||||
Policyholders’ Benefits and Incurred Losses and LAE | 183.2 | 186.8 | 59.1 | 61.5 | ||||||||||||||||||||||
Insurance Expenses | 178.3 | 178.8 | 59.9 | 61.7 | ||||||||||||||||||||||
Adjusted Operating Income | 35.6 | 40.8 | 15.1 | 12.1 | ||||||||||||||||||||||
Income Tax Expense | (4.1) | (3.6) | (2.2) | (0.9) | ||||||||||||||||||||||
Total Product Line Adjusted Net Operating Income | $ | 31.5 | $ | 37.2 | $ | 12.9 | $ | 11.2 |
Nine Months Ended | Three Months Ended | |||||||||||||||||||||||||
(Dollars in Millions) | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2023 | Sep 30, 2022 | ||||||||||||||||||||||
Earned Premiums | $ | 17.5 | $ | 136.8 | $ | 5.8 | $ | 45.9 | ||||||||||||||||||
Net Investment Income | — | 2.5 | — | 0.8 | ||||||||||||||||||||||
Changes in Value of Alternative Energy Partnership Investments | — | (0.1) | — | — | ||||||||||||||||||||||
Other Income (Loss) | 0.1 | 0.4 | (0.1) | 0.1 | ||||||||||||||||||||||
Total Revenues | 17.6 | 139.6 | 5.7 | 46.8 | ||||||||||||||||||||||
Policyholders’ Benefits and Incurred Losses and LAE | 9.6 | 70.3 | 2.5 | 22.3 | ||||||||||||||||||||||
Insurance Expenses | 8.5 | 63.3 | 3.4 | 22.4 | ||||||||||||||||||||||
Adjusted Operating (Loss) Income | (0.5) | 6.0 | (0.2) | 2.1 | ||||||||||||||||||||||
Income Tax Benefit (Expense) | 0.1 | (1.2) | — | (0.4) | ||||||||||||||||||||||
Total Product Line Adjusted Net Operating (Loss) Income | $ | (0.4) | $ | 4.8 | $ | (0.2) | $ | 1.7 |
Nine Months Ended | Three Months Ended | |||||||||||||||||||||||||
(Dollars in Millions) | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2023 | Sep 30, 2022 | ||||||||||||||||||||||
Earned Premiums | $ | 34.2 | $ | 38.3 | $ | 11.4 | $ | 11.9 | ||||||||||||||||||
Net Investment Income | 1.2 | 2.4 | 0.4 | 0.8 | ||||||||||||||||||||||
Changes in Value of Alternative Energy Partnership Investments | — | (0.3) | — | — | ||||||||||||||||||||||
Total Revenues | 35.4 | 40.4 | 11.8 | 12.7 | ||||||||||||||||||||||
Incurred Losses and LAE related to: | ||||||||||||||||||||||||||
Current Year: | ||||||||||||||||||||||||||
Non-catastrophe Losses and LAE | 6.6 | 10.5 | 2.2 | 2.8 | ||||||||||||||||||||||
Catastrophe Losses and LAE | 1.9 | 2.4 | 0.5 | 1.4 | ||||||||||||||||||||||
Prior Years: | ||||||||||||||||||||||||||
Non-catastrophe Losses and LAE | 1.1 | 1.2 | 0.1 | 0.1 | ||||||||||||||||||||||
Catastrophe Losses and LAE | 0.5 | 1.5 | 0.3 | 0.4 | ||||||||||||||||||||||
Total Incurred Losses and LAE | 10.1 | 15.6 | 3.1 | 4.7 | ||||||||||||||||||||||
Insurance Expenses | 18.0 | 20.1 | 6.1 | 6.6 | ||||||||||||||||||||||
Adjusted Operating Income | 7.3 | 4.7 | 2.6 | 1.4 | ||||||||||||||||||||||
Income Tax Expense | (1.6) | (0.9) | (0.6) | (0.3) | ||||||||||||||||||||||
Total Product Line Adjusted Net Operating Income | $ | 5.7 | $ | 3.8 | $ | 2.0 | $ | 1.1 | ||||||||||||||||||
Ratios Based On Earned Premiums | ||||||||||||||||||||||||||
Current Year Non-catastrophe Losses and LAE Ratio | 19.2 | % | 27.4 | % | 19.3 | % | 23.5 | % | ||||||||||||||||||
Current Year Catastrophe Losses and LAE Ratio | 5.6 | 6.3 | 4.4 | 11.8 | ||||||||||||||||||||||
Prior Years Non-catastrophe Losses and LAE Ratio | 3.2 | 3.1 | 0.9 | 0.8 | ||||||||||||||||||||||
Prior Years Catastrophe Losses and LAE Ratio | 1.5 | 3.9 | 2.6 | 3.4 | ||||||||||||||||||||||
Total Incurred Loss and LAE Ratio | 29.5 | % | 40.7 | % | 27.2 | % | 39.5 | % |
Nine Months Ended | Three Months Ended | |||||||||||||||||||||||||
(Dollars in Millions) | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2023 | Sep 30, 2022 | ||||||||||||||||||||||
Investment Income: | ||||||||||||||||||||||||||
Interest on Fixed Income Securities | $ | 259.8 | $ | 218.4 | $ | 86.5 | $ | 76.9 | ||||||||||||||||||
Dividends on Equity Securities Excluding Alternative Investments | 3.4 | 4.3 | 1.2 | 1.1 | ||||||||||||||||||||||
Alternative Investments: | ||||||||||||||||||||||||||
Equity Method Limited Liability Investments | 8.2 | 28.0 | 4.3 | (0.6) | ||||||||||||||||||||||
Limited Liability Investments Included in Equity Securities | 14.3 | 34.9 | 5.4 | 8.8 | ||||||||||||||||||||||
Total Alternative Investments | 22.5 | 62.9 | 9.7 | 8.2 | ||||||||||||||||||||||
Short-term Investments | 11.9 | 1.4 | 6.0 | 1.1 | ||||||||||||||||||||||
Loans to Policyholders | 15.6 | 16.3 | 5.1 | 5.5 | ||||||||||||||||||||||
Real Estate | 6.6 | 7.6 | 2.3 | 3.1 | ||||||||||||||||||||||
Company-Owned Life Insurance | 22.6 | 28.0 | 6.4 | 9.9 | ||||||||||||||||||||||
Other | 10.1 | 5.1 | 1.8 | 1.7 | ||||||||||||||||||||||
Total Investment Income | 352.5 | 344.0 | 119.0 | 107.5 | ||||||||||||||||||||||
Investment Expenses: | ||||||||||||||||||||||||||
Real Estate | 6.0 | 5.8 | 1.7 | 2.3 | ||||||||||||||||||||||
Other Investment Expenses | 31.4 | 21.9 | 10.3 | 7.4 | ||||||||||||||||||||||
Total Investment Expenses | 37.4 | 27.7 | 12.0 | 9.7 | ||||||||||||||||||||||
Net Investment Income | $ | 315.1 | $ | 316.3 | $ | 107.0 | $ | 97.8 |
Nine Months Ended | Three Months Ended | |||||||||||||||||||||||||
(Dollars in Millions) | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2023 | Sep 30, 2022 | ||||||||||||||||||||||
Recognized in Condensed Consolidated Statements of Loss: | ||||||||||||||||||||||||||
Income (Loss) from Change in Fair Value of Equity and Convertible Securities | $ | 6.9 | $ | (79.9) | $ | 2.8 | $ | (11.2) | ||||||||||||||||||
Gains on Sales | 3.1 | 34.6 | 1.3 | 18.7 | ||||||||||||||||||||||
Losses on Sales | (11.7) | (34.2) | (2.2) | (30.5) | ||||||||||||||||||||||
(Losses) Gains on Hedging Activity | (29.7) | — | (29.4) | (0.3) | ||||||||||||||||||||||
Impairment Gains (Losses) | 0.1 | (22.1) | (1.1) | (8.3) | ||||||||||||||||||||||
Net Losses Recognized in Condensed Consolidated Statements of Loss | (31.3) | (101.6) | (28.6) | (31.6) | ||||||||||||||||||||||
Recognized in Other Comprehensive Income (Loss) | (226.7) | (1,644.5) | (330.6) | (412.3) | ||||||||||||||||||||||
Total Comprehensive Investment Losses | $ | (258.0) | $ | (1,746.1) | $ | (359.2) | $ | (443.9) |
Nine Months Ended | Three Months Ended | |||||||||||||||||||||||||
(Dollars in Millions) | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2023 | Sep 30, 2022 | ||||||||||||||||||||||
Preferred Stocks | $ | 1.5 | $ | (8.4) | $ | 1.2 | $ | (2.5) | ||||||||||||||||||
Common Stocks | (0.2) | (0.5) | — | 0.8 | ||||||||||||||||||||||
Other Equity Interests: | ||||||||||||||||||||||||||
Exchange Traded Funds | 0.2 | (52.1) | (0.2) | (6.6) | ||||||||||||||||||||||
Limited Liability Companies and Limited Partnerships | 4.7 | (14.5) | 2.1 | (2.3) | ||||||||||||||||||||||
Total Other Equity Interests | 4.9 | (66.6) | 1.9 | (8.9) | ||||||||||||||||||||||
Income (Loss) from Change in Fair Value of Equity Securities | 6.2 | (75.5) | 3.1 | (10.6) | ||||||||||||||||||||||
Income (Loss) from Change in Fair Value of Convertible Securities | 0.7 | (4.4) | (0.3) | (0.6) | ||||||||||||||||||||||
Income (Loss) from Change in Fair Value of Equity and Convertible Securities | $ | 6.9 | $ | (79.9) | $ | 2.8 | $ | (11.2) |
Nine Months Ended | Three Months Ended | |||||||||||||||||||||||||
(Dollars in Millions) | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2023 | Sep 30, 2022 | ||||||||||||||||||||||
Fixed Maturities: | ||||||||||||||||||||||||||
Gains on Sales | $ | 2.3 | $ | 28.0 | $ | 0.8 | $ | 14.2 | ||||||||||||||||||
Losses on Sales | (10.5) | (27.5) | (1.2) | (23.9) | ||||||||||||||||||||||
(Losses) Gains on Hedging Activity | (29.7) | — | (29.4) | (0.3) | ||||||||||||||||||||||
Equity Securities: | ||||||||||||||||||||||||||
Gains on Sales | 0.6 | 6.6 | 0.5 | 4.5 | ||||||||||||||||||||||
Losses on Sales | (1.2) | (6.7) | (1.1) | (6.6) | ||||||||||||||||||||||
Other: | ||||||||||||||||||||||||||
Gains on Sales | 0.2 | — | — | — | ||||||||||||||||||||||
Losses on Sales | — | — | 0.1 | — | ||||||||||||||||||||||
Net Realized Investment (Losses) Gains | $ | (38.3) | $ | 0.4 | $ | (30.3) | $ | (12.1) | ||||||||||||||||||
Gross Gains on Sales | $ | 3.1 | $ | 34.6 | $ | 1.3 | $ | 18.7 | ||||||||||||||||||
Gross Losses on Sales | (11.7) | (34.2) | (2.2) | (30.5) | ||||||||||||||||||||||
(Losses) Gains on Hedging Activity | (29.7) | — | (29.4) | (0.3) | ||||||||||||||||||||||
Net Realized Investment (Losses) Gains | $ | (38.3) | $ | 0.4 | $ | (30.3) | $ | (12.1) |
Nine Months Ended | Three Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||
Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2023 | Sep 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in Millions) | Amount | Number of Issuers | Amount | Number of Issuers | Amount | Number of Issuers | Amount | Number of Issuers | ||||||||||||||||||||||||||||||||||||||||||
Fixed Maturities | $ | 0.6 | 18 | $ | (22.1) | 39 | $ | (1.5) | 14 | $ | (8.3) | 34 | ||||||||||||||||||||||||||||||||||||||
Securities Receivable | — | 1 | — | — | 0.8 | 1 | — | — | ||||||||||||||||||||||||||||||||||||||||||
Mortgage Loans | (0.2) | 5 | — | — | (0.1) | 3 | — | — | ||||||||||||||||||||||||||||||||||||||||||
Other | (0.3) | 1 | — | — | (0.3) | 1 | — | — | ||||||||||||||||||||||||||||||||||||||||||
Impairment Gains (Losses) | $ | 0.1 | $ | (22.1) | $ | (1.1) | $ | (8.3) |
(Dollars in Millions) | Sep 30, 2023 | Dec 31, 2022 | ||||||||||||||||||||||||||||||
NAIC Rating | Rating | Fair Value | Percentage | Fair Value | Percentage | |||||||||||||||||||||||||||
1 | AAA, AA, A | $ | 4,638.6 | 71.6 | % | $ | 4,896.4 | 71.0 | % | |||||||||||||||||||||||
2 | BBB | 1,562.1 | 24.1 | 1,687.4 | 24.5 | |||||||||||||||||||||||||||
3-4 | BB, B | 211.2 | 3.3 | 239.7 | 3.5 | |||||||||||||||||||||||||||
5-6 | CCC or Lower | 62.6 | 1.0 | 71.3 | 1.0 | |||||||||||||||||||||||||||
Total Investments in Fixed Maturities | $ | 6,474.5 | 100.0 | % | $ | 6,894.8 | 100.0 | % |
Sep 30, 2023 | Dec 31, 2022 | |||||||||||||||||||||||||
(Dollars in Millions) | Fair Value | Percentage of Total Investments | Fair Value | Percentage of Total Investments | ||||||||||||||||||||||
U.S. Government and Government Agencies and Authorities | $ | 487.2 | 5.8 | % | $ | 528.0 | 6.0 | % | ||||||||||||||||||
States and Political Subdivisions: | ||||||||||||||||||||||||||
Revenue Bonds | 1,139.8 | 13.5 | 1,324.3 | 15.1 | ||||||||||||||||||||||
States | 116.6 | 1.4 | 143.8 | 1.6 | ||||||||||||||||||||||
Political Subdivisions | 63.8 | 0.8 | 100.8 | 1.1 | ||||||||||||||||||||||
Foreign Governments | 4.2 | — | 4.1 | — | ||||||||||||||||||||||
Total Investments in Governmental Fixed Maturities | $ | 1,811.6 | 21.5 | % | $ | 2,101.0 | 23.8 | % |
Sep 30, 2023 | Dec 31, 2022 | |||||||||||||||||||||||||
(Dollars in Millions) | Fair Value | Percentage of Total Investments | Fair Value | Percentage of Total Investments | ||||||||||||||||||||||
Finance, Insurance and Real Estate | $ | 2,011.5 | 23.8 | % | $ | 2,007.5 | 22.8 | % | ||||||||||||||||||
Manufacturing | 999.4 | 11.8 | 1,085.9 | 12.4 | ||||||||||||||||||||||
Transportation, Communication and Utilities | 723.8 | 8.6 | 733.7 | 8.3 | ||||||||||||||||||||||
Services | 589.1 | 7.0 | 602.4 | 6.9 | ||||||||||||||||||||||
Mining | 165.4 | 2.0 | 173.3 | 2.0 | ||||||||||||||||||||||
Retail Trade | 140.9 | 1.7 | 165.1 | 1.9 | ||||||||||||||||||||||
Construction | 4.3 | 0.1 | 11.7 | 0.1 | ||||||||||||||||||||||
Other | 28.5 | 0.3 | 14.2 | 0.2 | ||||||||||||||||||||||
Total Investments in Non-governmental Fixed Maturities | $ | 4,662.9 | 55.3 | % | $ | 4,793.8 | 54.6 | % |
(Dollars in Millions) | Number of Issues | Aggregate Fair Value | ||||||||||||
Below $5 | 699 | $ | 1,423.7 | |||||||||||
$5 -$10 | 194 | 1,436.3 | ||||||||||||
$10 - $20 | 99 | 1,331.8 | ||||||||||||
$20 - $30 | 15 | 363.6 | ||||||||||||
Greater Than $30 | 3 | 107.5 | ||||||||||||
Total | 1,010 | $ | 4,662.9 |
(Dollars in Millions) | Fair Value | Percentage of Total Investments | ||||||||||||||||||
Fixed Maturities: | ||||||||||||||||||||
States including their Political Subdivisions: | ||||||||||||||||||||
California | $ | 119.8 | 1.4 | % | ||||||||||||||||
Texas | 112.1 | 1.3 | ||||||||||||||||||
Michigan | 77.8 | 0.9 | ||||||||||||||||||
New York | 71.1 | 0.8 | ||||||||||||||||||
Georgia | 67.8 | 0.8 | ||||||||||||||||||
Louisiana | 59.4 | 0.7 | ||||||||||||||||||
Pennsylvania | 52.6 | 0.6 | ||||||||||||||||||
Florida | 51.5 | 0.6 | ||||||||||||||||||
Colorado | 45.7 | 0.5 | ||||||||||||||||||
Missouri | 39.5 | 0.5 | ||||||||||||||||||
Total | $ | 697.3 | 8.1 | % |
Unfunded Commitment | Reported Value | |||||||||||||||||||
(Dollars in Millions) | Sep 30, 2023 | Sep 30, 2023 | Dec 31, 2022 | |||||||||||||||||
Reported as Equity Method Limited Liability Investments: | ||||||||||||||||||||
Mezzanine Debt | $ | 45.8 | $ | 123.8 | $ | 114.3 | ||||||||||||||
Senior Debt | 41.3 | 21.7 | 21.6 | |||||||||||||||||
Distressed Debt | — | 8.0 | 9.4 | |||||||||||||||||
Secondary Transactions | 1.7 | 8.2 | 9.3 | |||||||||||||||||
Leveraged Buyout | 0.6 | 9.9 | 8.9 | |||||||||||||||||
Growth Equity | — | 1.2 | 1.2 | |||||||||||||||||
Real Estate | — | 41.6 | 43.3 | |||||||||||||||||
Hedge Fund | — | 0.1 | 0.5 | |||||||||||||||||
Other | — | 9.6 | 8.5 | |||||||||||||||||
Total Equity Method Limited Liability Investments | 89.4 | 224.1 | 217.0 | |||||||||||||||||
Alternative Energy Partnership Investments | — | 17.2 | 16.3 | |||||||||||||||||
Reported as Other Equity Interests at Fair Value: | ||||||||||||||||||||
Mezzanine Debt | 62.8 | 121.9 | 106.0 | |||||||||||||||||
Senior Debt | 10.5 | 25.1 | 21.9 | |||||||||||||||||
Distressed Debt | 13.0 | 12.8 | 12.5 | |||||||||||||||||
Secondary Transactions | 3.1 | 2.9 | 3.5 | |||||||||||||||||
Hedge Funds | — | 3.0 | 18.1 | |||||||||||||||||
Leveraged Buyout | 7.0 | 21.6 | 21.6 | |||||||||||||||||
Growth Equity | 6.7 | 6.1 | 5.4 | |||||||||||||||||
Real Estate | 0.2 | 0.1 | — | |||||||||||||||||
Other | — | — | 0.1 | |||||||||||||||||
Total Reported as Other Equity Interests at Fair Value | 103.3 | 193.5 | 189.1 | |||||||||||||||||
Reported as Equity Securities at Modified Cost: | ||||||||||||||||||||
Other | — | 5.3 | 8.3 | |||||||||||||||||
Total Reported as Equity Securities at Modified Cost | — | 5.3 | 8.3 | |||||||||||||||||
Total Investments in Limited Liability Companies and Limited Partnerships | $ | 192.7 | $ | 440.1 | $ | 430.7 |
Nine Months Ended | Three Months Ended | |||||||||||||||||||||||||
(Dollars in Millions) | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2023 | Sep 30, 2022 | ||||||||||||||||||||||
Insurance Expenses: | ||||||||||||||||||||||||||
Commissions | $ | 463.0 | $ | 559.1 | $ | 130.8 | $ | 176.3 | ||||||||||||||||||
General Expenses | 254.6 | 272.0 | 85.9 | 93.5 | ||||||||||||||||||||||
Taxes, Licenses and Fees | 61.9 | 74.2 | 17.8 | 23.6 | ||||||||||||||||||||||
Total Costs Incurred | 779.5 | 905.3 | 234.5 | 293.4 | ||||||||||||||||||||||
Net Policy Acquisition Costs Amortized | 13.4 | 4.3 | 24.0 | 6.5 | ||||||||||||||||||||||
Amortization of Value of Business Acquired (“VOBA”) | 1.5 | 3.4 | 0.5 | 0.6 | ||||||||||||||||||||||
Insurance Expenses | 794.4 | 913.0 | 259.0 | 300.5 | ||||||||||||||||||||||
Loss from Early Extinguishment of Debt | — | 3.7 | — | — | ||||||||||||||||||||||
Interest and Other Expenses: | ||||||||||||||||||||||||||
Interest Expense | 42.2 | 41.0 | 14.1 | 14.3 | ||||||||||||||||||||||
Other Expenses: | ||||||||||||||||||||||||||
Acquisition and Disposition Related Transaction, Integration, Restructuring and Other Costs | 101.9 | 27.3 | 43.3 | 12.7 | ||||||||||||||||||||||
Pension Settlement Expense | 70.2 | — | 70.2 | — | ||||||||||||||||||||||
Other | 97.4 | 102.8 | 28.4 | 36.5 | ||||||||||||||||||||||
Other Expenses | 269.5 | 130.1 | 141.9 | 49.2 | ||||||||||||||||||||||
Interest and Other Expenses | 311.7 | 171.1 | 156.0 | 63.5 | ||||||||||||||||||||||
Goodwill Impairment | 49.6 | — | — | — | ||||||||||||||||||||||
Total Expenses | $ | 1,155.7 | $ | 1,087.8 | $ | 415.0 | $ | 364.0 |
(Dollars in Millions) | Sep 30, 2023 | Dec 31, 2022 | ||||||||||||
Senior Notes: | ||||||||||||||
4.350% Senior Notes due February 15, 2025 | $ | 449.6 | $ | 449.3 | ||||||||||
2.400% Senior Notes due September 30, 2030 | 396.9 | 396.6 | ||||||||||||
3.800% Senior Notes due February 23, 2032 | 395.8 | 395.5 | ||||||||||||
5.875% Fixed-Rate Reset Junior Subordinated Debentures Due 2062 | 146.3 | 145.5 | ||||||||||||
Total Long-term Debt Outstanding | $ | 1,388.6 | $ | 1,386.9 |
DOLLARS IN MILLIONS | Sep 30, 2023 | Sep 30, 2022 | ||||||||||||
Net Cash Used in Operating Activities | $ | (104.5) | $ | (170.1) | ||||||||||
Net Cash Provided by (Used in) Investing Activities | 105.2 | (129.6) | ||||||||||||
Net Cash (Used in) Provided by Financing Activities | (100.7) | 403.8 |
Incorporated by Reference | ||||||||||||||||||||||||||||||||||||||
Exhibit Number | Exhibit Description | Form | File Number | Exhibit | Filing Date | Filed or Furnished Herewith | ||||||||||||||||||||||||||||||||
31.1 | X | |||||||||||||||||||||||||||||||||||||
31.2 | X | |||||||||||||||||||||||||||||||||||||
32.1 | X | |||||||||||||||||||||||||||||||||||||
32.2 | X | |||||||||||||||||||||||||||||||||||||
101.1 | XBRL Instance Document | X | ||||||||||||||||||||||||||||||||||||
101.2 | XBRL Taxonomy Extension Schema Document | X | ||||||||||||||||||||||||||||||||||||
101.3 | XBRL Taxonomy Extension Calculation Linkbase Document | X | ||||||||||||||||||||||||||||||||||||
101.4 | XBRL Taxonomy Extension Label Linkbase Document | X | ||||||||||||||||||||||||||||||||||||
101.5 | XBRL Taxonomy Extension Presentation Linkbase Document | X | ||||||||||||||||||||||||||||||||||||
101.6 | XBRL Taxonomy Extension Definition Linkbase Document | X | ||||||||||||||||||||||||||||||||||||
104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) | X |
Kemper Corporation | ||||||||
Date: | October 30, 2023 | /s/ JOSEPH P. LACHER, JR. | ||||||
Joseph P. Lacher, Jr. | ||||||||
Chairman of the Board, President and Chief Executive Officer (Principal Executive Officer) | ||||||||
Date: | October 30, 2023 | /s/ BRADLEY T. CAMDEN | ||||||
Bradley T. Camden | ||||||||
Senior Vice President and Interim Chief Financial Officer (Principal Financial Officer) | ||||||||
Date: | October 30, 2023 | /s/ JAMES A. ALEXANDER | ||||||
James A. Alexander | ||||||||
Senior Vice President and Chief Accounting Officer (Principal Accounting Officer) |
/s/ JOSEPH P. LACHER, JR. | |||||
Joseph P. Lacher, Jr. | |||||
Chairman of the Board, President and Chief Executive Officer |
/s/ BRADLEY T. CAMDEN | |||||
Bradley T. Camden | |||||
Senior Vice President and Interim Chief Financial Officer |
/s/ JOSEPH P. LACHER, JR. | |||||||||||
Name: | Joseph P. Lacher, Jr. | ||||||||||
Title: | Chairman of the Board, President and Chief Executive Officer | ||||||||||
Date: | October 30, 2023 |
/s/ BRADLEY T. CAMDEN | |||||||||||
Name: | Bradley T. Camden | ||||||||||
Title: | Senior Vice President and Interim Chief Financial Officer | ||||||||||
Date: | October 30, 2023 |
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions |
Sep. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Fixed maturities, at amortized cost | $ 7,622.5 | $ 7,811.8 |
Fixed maturities, allowance for credit losses | 8.6 | 9.6 |
Equity securities, at cost | 215.5 | 247.6 |
Premium receivables, allowance for credit losses | 13.5 | 13.1 |
Long-term Debt | $ 1,158.0 | $ 1,195.1 |
Common stock, par value (in dollars per share) | $ 0.10 | $ 0.10 |
Common stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock, shares issued (in shares) | 64,081,099 | 63,912,762 |
Common stock, shares outstanding (in shares) | 64,081,099 | 63,912,762 |
Variable Interest Entity, Primary Beneficiary | ||
Fixed maturities, at amortized cost | $ 1.6 | $ 0.0 |
Fixed maturities, allowance for credit losses | $ 0.0 | $ 0.0 |
Interim Condensed Consolidated Statements of Income (Parenthetical) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Income Statement [Abstract] | ||||
Changes in liability for future policyholder benefits | $ 6.1 | $ 1.6 | $ 8.6 | $ 21.9 |
Changes in deferred profit liability | 15.9 | 19.1 | 51.6 | 56.8 |
Less: Net Loss attributable to Noncontrolling Interest | (0.1) | 0.0 | (0.1) | 0.0 |
Net Loss | (146.3) | (74.8) | (323.5) | (233.3) |
Net Loss | (146.4) | (74.8) | (323.6) | (233.3) |
Loss before Income Taxes | $ (190.8) | $ (87.8) | $ (410.6) | $ (298.1) |
Basis of Presentation and Accounting Policies |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Basis of Presentation and Accounting Policies | Basis of Presentation and Accounting Policies The unaudited Condensed Consolidated Financial Statements include the accounts of Kemper Corporation (“Kemper”) and its subsidiaries which include property and casualty subsidiaries, life subsidiaries, a health subsidiary through the date of its sale of December 1, 2022 (collectively referred to herein as the “Company”), and a variable interest entity (“VIE”) in which the Company is considered the primary beneficiary. The unaudited Condensed Consolidated Financial Statements included herein have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) on a basis consistent with reporting interim financial information pursuant to the rules and regulations for Form 10-Q and Article 10 of Regulation S-X of the SEC and include the accounts of Kemper Corporation and its subsidiaries. All intercompany accounts and transactions have been eliminated. Certain financial information that is included in the annual financial statements, including certain financial statement footnote disclosures, prepared in accordance with GAAP is not required by the rules and regulations of the SEC for interim financial reporting and has been condensed or omitted. In the opinion of the Company’s management, the Condensed Consolidated Financial Statements include all adjustments necessary to fairly present the financial position, results of operations and cash flows for the periods presented. The preparation of financial statements requires significant management estimates. Due to this factor and other factors, such as the seasonal nature of some portions of the insurance business, annualizing the results of operations for the nine months ended September 30, 2023 would not necessarily be indicative of the results expected for the full fiscal year. The accompanying Condensed Consolidated Financial Statements should be read in conjunction with the Company’s Consolidated Financial Statements and related notes included in Kemper’s Annual Report for the year ended December 31, 2022, except for Note 7 “Liability for Future Policyholder Benefits”, Note 8 “Deferred Policy Acquisition Costs”, Note 13 “Other Comprehensive Income (Loss) and Accumulated Other Comprehensive Loss” and Note 16 “Policyholder Obligations”, which were impacted due to the implementation of Financial Accounting Standards Board (FASB) Accounting Standards Update (ASU) 2018-12 Financial Services-Insurance (Topic 944): Targeted Improvements to Accounting for Long-Duration Contracts. Adoption of New Accounting Guidance The Company has adopted all recently issued accounting pronouncements with effective dates prior to September 30, 2023. Other than discussed below, there were no adoptions of accounting pronouncements during the nine months ended September 30, 2023 that had a material impact on the Company’s Condensed Consolidated Financial Statements. Guidance Adopted in 2023 The Company adopted ASU 2018-12 for the liability for future policyholder benefits and deferred acquisition costs on a modified retrospective basis as of January 1, 2023, such that those balances were adjusted to conform to ASU 2018-12 on January 1, 2021. The new standard requires cash flow assumptions used to measure the liability for future policyholder benefits for nonparticipating traditional and limited pay long-duration contracts be reviewed at least annually, and if there is a change, updated with the recognition and remeasurement recorded in net income. It also requires the discount rate used in measuring the liability to be an upper-medium grade fixed-income instrument yield, which is to be updated at each reporting period, and recognized in other comprehensive income. ASU 2018-12 simplifies the amortization of deferred acquisition costs to a constant level basis over the expected term of the contract, requires all market risk benefits to be measured at fair value, and enhances certain presentation and disclosure requirements, as discussed in Note 7 and Note 8. As a result of the adoption of ASU 2018-12, beginning retained earnings was reduced by $25.1 million and Accumulated Other Comprehensive Income (“AOCI”) reduced by $1,030.3 million as of January 1, 2021. The table below presents the transition adjustment for the adoption of ASU 2018-12:
Note 1 - Basis of Presentation and Accounting Policies (Continued) For the liability for future policyholder benefits, the net transition adjustment is related to the difference in the historical discount rates used pre-transition and the discount rate at December 31, 2020. At transition, there were no adjustments related to premium deficiencies, as the balance is only applicable to Kemper’s universal life contracts which are stated at account value. The effects of adoption of ASU 2018-12 on the Condensed Consolidated Statement of Loss for the nine months ended September 30, 2022 were as follows:
The effects of adoption of ASU 2018-12 on the Condensed Consolidated Statement of Loss for the three months ended September 30, 2022 were as follows:
The effects of adoption of ASU 2018-12 on the Condensed Consolidated Balance Sheet as of December 31, 2022 were as follows:
Note 1 - Basis of Presentation and Accounting Policies (Continued) The effects of adoption of ASU 2018-12 on the Condensed Consolidated Statement of Comprehensive Loss for the nine months ended September 30, 2022 were as follows:
The effects of adoption of ASU 2018-12 on the Condensed Consolidated Statement of Comprehensive Loss for the three months ended September 30, 2022 were as follows:
The effects of adoption of ASU 2018-12 on the Condensed Consolidated Statement of Cash Flows for the nine months ended September 30, 2022 were as follows:
Guidance Not Yet Adopted In March 2023, the FASB issued ASU 2023-02 Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method, which expands the use of the proportional amortization method of accounting to equity investments in other tax credit structures that meet certain criteria. The proportional amortization method results in the tax credit investment being amortized in proportion to the allocation of tax credits and other tax benefits in each period, and a net presentation within the income tax line item. ASU 2023-02 is effective for annual periods beginning after December 15, 2023 and interim periods within those annual periods. The Company is currently evaluating the impact of this guidance on its financial statements. Significant Accounting Policies Related to ASU 2018-12 The below outlines those significant accounting policies related to ASU 2018-12 that were effective January 1, 2023. Liability for Future Policyholder Benefits A liability for future policyholder benefits, which is the present value of estimated future policyholder benefits to be paid to or on behalf of policyholders and certain related expenses, less the present value of estimated future net premiums to be collected from policyholders, is accrued as premium revenue is recognized. The liability is estimated using current assumptions that Note 1 - Basis of Presentation and Accounting Policies (Continued) include discount rate, mortality, lapses and expenses. These current assumptions are based on judgments that consider the Company’s historical experience, industry data, and other factors. The liability is adjusted for differences between actual and expected experience. The Company reviews and updates its estimate of cash flows expected over the lifetime of a group of contracts using actual historical experience quarterly and current future cash flow assumptions at least annually to calculate its revised net premium ratio. The revised net premium ratios are then used to calculate an updated liability for future policyholder benefits for the current reporting period, discounted at the original contract issuance discount rate. The Company has elected to use expense assumptions that are locked in at contract inception and are not subsequently reviewed or updated. Resulting changes in the liability due to differences in actual versus expected experience, changes in current cash flow assumptions, and prefunding and payout of benefits compared to the carrying amount of the liability as of that same date are recorded as a separate component of benefit expense in the Condensed Consolidated Statements of Loss. The current discount rate assumption is an equivalent spot rate curve of annually compounded rates at monthly increments that is derived based on A-credit rated fixed-income instruments reflecting the duration characteristics of the liability. The Company utilizes published corporate yield curves from Bloomberg’s BVAL Investment Grade Corporate Sector curve. The current discount rate assumption is updated quarterly and used to remeasure the liability at the reporting date, with the resulting change reflected in Other Comprehensive Income (Loss). For liability cash flows that are projected beyond the maximum observable point on the yield curve, the yield grades to an ultimate forward rate. Deferred Profit Liability For limited-payment products, gross premiums received in excess of net premiums are deferred at initial recognition as a deferred profit liability (“DPL”). Gross premiums are measured using assumptions consistent with those used in the measurement of the liability for future policyholder benefits, including discount rate, mortality, lapses, and expenses. The DPL is amortized and recognized as premium revenue in proportion to insurance in force for nonparticipating limited-payment contracts. Interest is accreted on the balance of the DPL using the discount rate determined at contract issuance. The Company reviews and updates its estimates of cash flows for the DPL at the same time as the estimates of cash flows for the liability for future policyholder benefits. When cash flows are updated, the updated estimates are used to recalculate the DPL at contract issuance. The recalculated DPL as of the beginning of the current reporting period is compared to the carrying amount of the DPL as of the beginning of the current reporting period, and any difference is recognized as either an increase or decrease to Earned Premiums. Deferred Policy Acquisition Costs Deferred costs are grouped by contract type and issue year into cohorts consistent with the grouping used in estimating the associated liability. These deferred costs are amortized on a constant level basis for grouped contracts over the expected term of the related contracts to approximate straight-line amortization. The expected term of the contract used for amortization is determined using mortality and termination assumptions that are based on the Company’s experience, industry data, and other factors and are consistent with those used for the liability for future policyholder benefits. If those projected assumptions change in future periods, they will be reflected in the straight-line amortization horizon at that time. Unexpected terminations, due to higher mortality and termination experience than expected, are recognized in the current period as a reduction of the capitalized balances. Amortization of deferred policy acquisition costs is included in Insurance Expenses in the Condensed Consolidated Statements of Loss.
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Net Income Per Unrestricted Share |
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Earnings Per Share [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Income Per Unrestricted Share | Per Unrestricted ShareThe Company’s awards of deferred stock units granted to Kemper’s non-employee directors prior to 2019 contain rights to receive non-forfeitable dividend equivalents and participate in the undistributed earnings with common shareholders. Accordingly, the Company is required to apply the two-class method of computing basic and diluted earnings per share. Note 2 - Net Loss Per Unrestricted Share (Continued) A reconciliation of the numerator and denominator used in the calculation of Basic Net Loss Per Unrestricted Share and Diluted Net Loss Per Unrestricted Share for the nine and three months ended September 30, 2023 and 2022 is presented below.
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Dispositions |
9 Months Ended |
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Sep. 30, 2023 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Dispositions | Dispositions Disposition of Reserve National Insurance Company In July 2022, the Company entered into a definitive agreement to sell Reserve National Insurance Company and its wholly-owned subsidiaries (collectively, “Reserve National”) to Medical Mutual of Ohio, for approximately $90.0 million in total consideration. The sale closed on December 1, 2022 and a loss of $1.6 million, net of income tax, was recorded for the year ended December 31, 2022. Subsequent adjustments to this purchase price could occur pursuant to the definitive agreement but are not expected to be material. The Company reported Reserve National’s results of operations in the Life Insurance segment through December 1, 2022.
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Intangible Assets, Goodwill and Other |
9 Months Ended |
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Sep. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill Disclosure | GoodwillDuring the second quarter of 2023, the Company identified impairment indicators impacting the fair value of the Preferred Property & Casualty Insurance business in connection with ongoing evaluation of strategic alternatives for the Preferred Insurance business. As a result, the business’s fair value was determined using a combination of available market information, market comparisons and a discounted cash flow valuation method based on the present value of future earnings. The fair value calculated in the second quarter of 2023 was lower than the carrying value of the business, resulting in a pre-tax impairment charge of $49.6 million and an after-tax impairment charge of $45.5 million. A substantial portion of the goodwill that was impaired was not tax deductible. The goodwill impairment charge is reported separately in the Condensed Consolidated Statements of Loss for the nine months ended September 30, 2023, with a corresponding reduction to goodwill in the Condensed Consolidated Balance Sheet as of September 30, 2023. |
Business Segments |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Segments | Business SegmentsIn the third quarter of 2023, the Company announced that it will exit the Preferred Property and Casualty Insurance business and will actively reduce the business beginning in third quarter 2023, with all policies being non-renewed or canceled in accordance with applicable state regulations. In connection with the exit, the Company changed its segment measure of performance to exclude the results of the Preferred Property and Casualty Insurance business from Segment Adjusted Net Operating Loss effective July 1, 2023, since the results are irrelevant to ongoing operations of the Company and do not qualify for Discontinued Operations under U.S. GAAP. The results of this business, previously reported as a reportable segment, are Note 5 - Business Segments (Continued) now reflected as Non-Core Operations and presented as a reconciling item between Segment Adjusted Operating Net Loss and Net Loss. Prior period amounts have been recast to reflect the change in reportable segments and the segment measure of performance. As of September 30, 2023, the Company principally conducts its operations through two segments: Specialty Property & Casualty Insurance and Life Insurance. The Specialty Property & Casualty Insurance segment’s principal products are specialty and commercial automobile insurance. These products are distributed primarily through independent agents and brokers. The Life Insurance segment’s principal products are individual life, accident, supplemental health and property insurance. Career agents employed by the Company distribute these products. This segment has historically been referred to as “Life & Health Insurance.” The results of the segment are unchanged. Corporate and Other operations include interest expense, board of director fees, and general corporate expenses incurred by the Company which are not allocated to other businesses. Segment Adjusted Operating (Loss) Income The Company analyzes the operating performance of each segment using segment adjusted operating (loss) income. Segment adjusted operating (loss) income does not equate to “loss before income taxes” or “net loss” as determined in accordance with U.S. GAAP but is the measure of segment profit or loss used by the Company’s Chief Operating Decision Maker (“CODM”) to evaluate segment performance and allocate resources, and consistent with authoritative guidance, is the measure of segment performance presented below. Segment adjusted operating (loss) income is calculated by adjusting each segment’s loss before income taxes for the following items: (i) Income (Loss) from Change in Fair Value of Equity and Convertible Securities; (ii) Net Realized Investment (Losses) Gains; (iii) Impairment Gains (Losses); (iv) Acquisition and Disposition Related Transaction, Integration, Restructuring and Other Costs; (v) Debt Extinguishment, Pension Settlement and Other Charges; (vi) Goodwill Impairment Charge; (vii) Non-Core Operations; and (viii) Significant non-recurring or infrequent items that may not be indicative of ongoing operations These items are important to an understanding of overall results of operations. Segment adjusted operating (loss) income is not a substitute for income determined in accordance with U.S. GAAP, and the Company’s definition of segment adjusted operating (loss) income may differ from that used by other companies. The Company, however, believes that the presentation of segment adjusted consolidated operating (loss) income as measured for management purposes enhances the understanding of results of operations by highlighting the results from ongoing operations and the underlying profitability factors of its businesses. Note 5 - Business Segments (Continued) Earned Premiums by product line, including a reconciliation to Total Earned Premiums, for the nine and three months ended September 30, 2023 and 2022 were:
Segment Revenues, including a reconciliation to Total Revenues, for the nine and three months ended September 30, 2023 and 2022 were:
Note 5 - Business Segments (Continued) Adjusted Consolidated Operating (Loss) Income, including a reconciliation to Loss before Income Taxes, for the nine and three months ended September 30, 2023 and 2022 was:
Note 5 - Business Segments (Continued) Adjusted Consolidated Net Operating Loss, including a reconciliation to Net Loss, for the nine and three months ended September 30, 2023 and 2022 was:
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Property and Casualty Insurance Reserves |
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Liability for Future Policy Benefits and Unpaid Claims and Claims Adjustment Expense [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property and Casualty Insurance Reserves | Property and Casualty Insurance Reserves Property and casualty insurance reserve activity for the nine months ended September 30, 2023 and 2022 was:
Property and casualty insurance reserves are estimated based on historical experience patterns and current economic trends. Actual loss experience and loss trends are likely to differ from these historical experience patterns and economic conditions. Loss experience and loss trends emerge over several years from the dates of loss inception. The Company monitors such emerging loss trends on a quarterly basis. Changes in such estimates are included in the Condensed Consolidated Statements of Loss in the period of change. For the nine months ended September 30, 2023, the Company increased its property and casualty insurance reserves by $158.5 million to recognize adverse development of loss and LAE reserves from prior accident years. Specialty personal automobile insurance loss and LAE reserves developed adversely by $110.9 million due primarily to higher than expected emergence in loss patterns related to third and fourth accident quarters of 2022 within the bodily injury and physical damage coverages as well as an increase in Florida personal injury protection driven by higher than expected frequency and severity resulting from an increase in litigated claim activity, mainly from policy years 2020 through 2022. Commercial automobile insurance loss and LAE reserves developed adversely by $22.2 million due to higher than expected emergence in loss patterns related to policy years 2021 and 2022 bodily injury coverages. Non-Core personal automobile insurance loss and LAE reserves developed adversely by $18.3 million due to higher than expected emergence in loss patterns related to the third and fourth accident quarters of 2022 within the bodily injury and physical damage coverages. Non-Core homeowners loss and LAE reserves developed adversely by $3.8 million. None-Core other lines loss and LAE reserves developed adversely by $3.3 million. For the nine months ended September 30, 2022, the Company decreased its property and casualty insurance reserves by $22.5 million to recognize favorable development of loss and LAE reserves from prior accident years. Specialty personal automobile insurance loss and LAE reserves developed favorably by $31.6 million due primarily to the emergence of more favorable loss patterns than expected for liability and physical damage insurance. Commercial automobile insurance loss and LAE reserves developed adversely by $7.5 million due primarily to the emergence of more adverse loss patterns than expected for liability insurance. Non-Core personal automobile insurance loss and LAE reserves developed adversely by $1.9 million due primarily to the emergence of more adverse loss patterns than expected for liability insurance. Homeowners loss and LAE reserves developed favorably by $6.1 million due primarily to the emergence of more favorable loss patterns than expected. Other lines loss and LAE reserves developed adversely by $5.8 million due primarily to the emergence of more adverse loss patterns than expected for prior accident years. Note 6 - Property and Casualty Insurance Reserves (Continued) The Company cannot predict whether loss and LAE reserves will develop favorably or adversely from the amounts reported in the Company’s Condensed Consolidated Financial Statements. The Company believes that any such development will not have a material effect on the Company’s Condensed Consolidated Shareholders’ Equity, but could have a material effect on the Company’s consolidated financial results for a given period. Receivables from Policyholders - Allowance for Expected Credit Losses The following table presents receivables from policyholders, net of the allowance for expected credit losses including a roll forward of changes in the allowance for expected credit losses for the nine months ended September 30, 2023.
The following table presents receivables from policyholders, net of the allowance for expected credit losses including a roll forward of changes in the allowance for expected credit losses for the nine months ended September 30, 2022.
The following tables summarize balances and changes in the present value of expected net premiums, present value of expected future policyholder benefits and net liability for future policyholder benefits as of and for the nine and three months ended September 30, 2023 and September 30, 2022:
The weighted-average liability duration of the liability for future policyholder benefits as calculated under current rates is as follows:
Note 7 - Liability for Future Policyholder Benefits (Continued) The reconciliation of the net liability for future policyholder benefits to Life and Health Insurance Reserves in the Condensed Consolidated Balance Sheets is as follows:
1Other primarily consists of Accident and Health and Universal Life reserves The amounts of expected undiscounted future benefit payments, expected undiscounted future gross premiums and expected discounted future gross premiums, were as follows:
The amount of revenue and interest recognized in the Condensed Consolidated Statements of Loss is as follows:
The weighted-average interest rate is as follows:
Significant assumption inputs to the calculation of the liability for future policyholder benefits include mortality, lapses, and discount rates (both accretion and current). The Company reviewed all significant assumptions and did not make any changes to mortality and lapse assumptions. Market data that underlies current discount rates was updated from June 30, 2023.
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Financial Services, Insurance |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Insurance [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property and Casualty Insurance Reserves | Property and Casualty Insurance Reserves Property and casualty insurance reserve activity for the nine months ended September 30, 2023 and 2022 was:
Property and casualty insurance reserves are estimated based on historical experience patterns and current economic trends. Actual loss experience and loss trends are likely to differ from these historical experience patterns and economic conditions. Loss experience and loss trends emerge over several years from the dates of loss inception. The Company monitors such emerging loss trends on a quarterly basis. Changes in such estimates are included in the Condensed Consolidated Statements of Loss in the period of change. For the nine months ended September 30, 2023, the Company increased its property and casualty insurance reserves by $158.5 million to recognize adverse development of loss and LAE reserves from prior accident years. Specialty personal automobile insurance loss and LAE reserves developed adversely by $110.9 million due primarily to higher than expected emergence in loss patterns related to third and fourth accident quarters of 2022 within the bodily injury and physical damage coverages as well as an increase in Florida personal injury protection driven by higher than expected frequency and severity resulting from an increase in litigated claim activity, mainly from policy years 2020 through 2022. Commercial automobile insurance loss and LAE reserves developed adversely by $22.2 million due to higher than expected emergence in loss patterns related to policy years 2021 and 2022 bodily injury coverages. Non-Core personal automobile insurance loss and LAE reserves developed adversely by $18.3 million due to higher than expected emergence in loss patterns related to the third and fourth accident quarters of 2022 within the bodily injury and physical damage coverages. Non-Core homeowners loss and LAE reserves developed adversely by $3.8 million. None-Core other lines loss and LAE reserves developed adversely by $3.3 million. For the nine months ended September 30, 2022, the Company decreased its property and casualty insurance reserves by $22.5 million to recognize favorable development of loss and LAE reserves from prior accident years. Specialty personal automobile insurance loss and LAE reserves developed favorably by $31.6 million due primarily to the emergence of more favorable loss patterns than expected for liability and physical damage insurance. Commercial automobile insurance loss and LAE reserves developed adversely by $7.5 million due primarily to the emergence of more adverse loss patterns than expected for liability insurance. Non-Core personal automobile insurance loss and LAE reserves developed adversely by $1.9 million due primarily to the emergence of more adverse loss patterns than expected for liability insurance. Homeowners loss and LAE reserves developed favorably by $6.1 million due primarily to the emergence of more favorable loss patterns than expected. Other lines loss and LAE reserves developed adversely by $5.8 million due primarily to the emergence of more adverse loss patterns than expected for prior accident years. Note 6 - Property and Casualty Insurance Reserves (Continued) The Company cannot predict whether loss and LAE reserves will develop favorably or adversely from the amounts reported in the Company’s Condensed Consolidated Financial Statements. The Company believes that any such development will not have a material effect on the Company’s Condensed Consolidated Shareholders’ Equity, but could have a material effect on the Company’s consolidated financial results for a given period. Receivables from Policyholders - Allowance for Expected Credit Losses The following table presents receivables from policyholders, net of the allowance for expected credit losses including a roll forward of changes in the allowance for expected credit losses for the nine months ended September 30, 2023.
The following table presents receivables from policyholders, net of the allowance for expected credit losses including a roll forward of changes in the allowance for expected credit losses for the nine months ended September 30, 2022.
The following tables summarize balances and changes in the present value of expected net premiums, present value of expected future policyholder benefits and net liability for future policyholder benefits as of and for the nine and three months ended September 30, 2023 and September 30, 2022:
The weighted-average liability duration of the liability for future policyholder benefits as calculated under current rates is as follows:
Note 7 - Liability for Future Policyholder Benefits (Continued) The reconciliation of the net liability for future policyholder benefits to Life and Health Insurance Reserves in the Condensed Consolidated Balance Sheets is as follows:
1Other primarily consists of Accident and Health and Universal Life reserves The amounts of expected undiscounted future benefit payments, expected undiscounted future gross premiums and expected discounted future gross premiums, were as follows:
The amount of revenue and interest recognized in the Condensed Consolidated Statements of Loss is as follows:
The weighted-average interest rate is as follows:
Significant assumption inputs to the calculation of the liability for future policyholder benefits include mortality, lapses, and discount rates (both accretion and current). The Company reviewed all significant assumptions and did not make any changes to mortality and lapse assumptions. Market data that underlies current discount rates was updated from June 30, 2023.
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Deferred Costs, Capitalized, Prepaid, and Other Assets |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Deferred Policy Acquisition Costs | Deferred Policy Acquisition Costs The following table presents the balances and changes in Deferred Policy Acquisition Costs for the Property and Casualty and Life and Health and business for the nine months ended September 30, 2023 and 2022:
Costs directly associated with the successful acquisition of business, principally commissions and certain premium taxes and policy issuance costs, are deferred. Costs deferred on property and casualty insurance contracts are amortized over the period in which premiums are earned. Costs deferred on traditional life insurance products and other long-duration insurance contracts are amortized on a constant level basis over the expected life of the contracts in accordance with the assumptions used to estimate the liability for future policyholder benefits for nonparticipating traditional and limited-payment contracts. The underlying assumptions for deferred policy acquisition costs and the liability for future policyholder benefits were updated concurrently. The Company did not make any changes to future assumptions for both the nine months ended September 30, 2023 and 2022.
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Investments |
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Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments | Note 9 - Investments Fixed Maturities The amortized cost and fair values of the Company’s Investments in Fixed Maturities at September 30, 2023 were:
The amortized cost and fair values of the Company’s Investments in Fixed Maturities at December 31, 2022 were:
Other Receivables included $0.9 million and $5.8 million of unsettled sales of Investments in Fixed Maturities at September 30, 2023 and December 31, 2022, respectively. Accrued Expenses and Other Liabilities included unsettled purchases of Investments in Fixed Maturities of $1.0 million and $25.9 million at September 30, 2023 and December 31, 2022, respectively. Note 9 - Investments (Continued) The amortized cost and fair values of the Company’s Investments in Fixed Maturities at September 30, 2023 by contractual maturity were:
The expected maturities of the Company’s Investments in Fixed Maturities may differ from the contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties. Investments in Mortgage- and Asset-backed Securities Not Due at a Single Maturity Date at September 30, 2023 consisted of securities issued by the Government National Mortgage Association with a fair value of $231.3 million, securities issued by the Federal National Mortgage Association with a fair value of $85.9 million, securities issued by the Federal Home Loan Mortgage Corporation with a fair value of $59.2 million, and securities issued by other non-governmental issuers with a fair value of $1,260.6 million. An aging of unrealized losses on the Company’s Investments in Fixed Maturities at September 30, 2023 is presented below.
Investment-grade fixed maturity investments comprised $1,120.1 million and below-investment-grade Fixed Maturity Investments comprised $28.9 million of the unrealized losses on investments in fixed maturities at September 30, 2023. For below-investment-grade fixed maturity investments in an unrealized loss position, the unrealized loss amount, on average, was approximately 9.4% of the amortized cost basis of the investment. Note 9 - Investments (Continued) An aging of unrealized losses on the Company’s Investments in Fixed Maturities at December 31, 2022 is presented below.
Investment-grade fixed maturity investments comprised $904.0 million and below-investment-grade Fixed Maturity Investments comprised $32.8 million of the unrealized losses on Investments in Fixed Maturities at December 31, 2022. For below-investment-grade fixed maturity investments in an unrealized loss position, the unrealized loss amount, on average, was approximately 11% of the amortized cost basis of the investment. Fixed Maturities - Expected Credit Losses The following table sets forth the change in allowance for credit losses on fixed maturities available-for-sale by major security type for nine months ended September 30, 2023.
Note 9 - Investments (Continued) The following table sets forth the change in allowance for credit losses on fixed maturities available-for-sale by major security type for the nine months ended September 30, 2022.
Equity Securities at Fair Value Investments in Equity Securities at Fair Value were $233.4 million and $243.2 million at September 30, 2023 and December 31, 2022, respectively. Net unrealized gains arising during the nine months ended September 30, 2023 and recognized in earnings, related to such investments still held as of September 30, 2023, were $5.1 million. There were no unsettled purchases of Investments in Equity Securities at Fair Value at September 30, 2023 or December 31, 2022. There were $20.7 million and $0.0 million in unsettled sales of Investments in Equity Securities at Fair Value at September 30, 2023 and December 31, 2022, respectively. Equity Method Limited Liability Investments Equity Method Limited Liability Investments include investments in limited liability investment companies and limited partnerships in which the Company’s interests are not deemed minor and are accounted for under the equity method of accounting. The Company’s investments in Equity Method Limited Liability Investments are generally of a passive nature in that the Company does not take an active role in the management of the investment entity. The Company’s maximum exposure to loss at September 30, 2023 is limited to the total carrying value of $224.1 million. In addition, the Company had outstanding commitments totaling approximately $89.4 million to fund Equity Method Limited Liability Investments at September 30, 2023. At September 30, 2023, 2.5% of Equity Method Limited Liability Investments were reported without a reporting lag. Of the total carrying value, 5.5% was reported with a one month lag and the remainder was reported with more than a one-month lag. There were no unsettled purchases of Equity Method Limited Liability Investments at September 30, 2023 or December 31, 2022. There were $2.1 million and $35.2 million unsettled sales of Equity Method Limited Liability Investments at September 30, 2023 and December 31, 2022, respectively. Unsettled sales of Equity Method Limited Liability Investments are carried within Other Receivables on the Condensed Consolidated Balance Sheets. Alternative Energy Partnership Investments Alternative Energy Partnership Investments include partnerships formed to invest in newly installed residential solar leases and power purchase agreements. As a result of this investment, the Company has the right to certain investment tax credits and tax depreciation benefits, and to a lesser extent, cash flows generated from the installed solar systems leased to individual consumers for a fixed period of time. The Hypothetical Liquidation Book Value (“HLBV”) equity method of accounting is used for the Company’s investments in Alternative Energy Partnership Investments. The Company’s maximum exposure to loss at September 30, 2023 is limited to the total carrying value of $17.2 million. The Company had no outstanding commitments to fund Alternative Energy Partnership Investments as of September 30, 2023. Alternative Energy Partnership Investments are reported on a three-month lag. Note 9 - Investments (Continued) Loans to Policyholders Loans to Policyholders represents funds loaned to policyholders up to the cash surrender value of the associated insurance policies and are carried at the unpaid principal balances due to the Company from the policyholders. Interest income on policy loans is recognized in Net Investment Income at the contract interest rate when earned. Policy loans are fully collateralized by the cash surrender value of the associated insurance policies. The carrying values of the Company’s Loans to Policyholders at Unpaid Principal investment at September 30, 2023 and December 31, 2022 were $281.8 million and $283.4 million, respectively. Other Investments The carrying values of the Company’s Other Investments at September 30, 2023 and December 31, 2022 were:
The Company performs a qualitative impairment analysis of its Other Investments on a quarterly basis consisting of various factors such as earnings performance, current market conditions, changes in credit ratings, changes in the regulatory environment and other factors. If the qualitative analysis identifies the presence of impairment indicators, the Company estimates the fair value of the investment. If the estimated fair value is below the carrying value, the Company records an impairment in the Condensed Consolidated Statements of Loss to reduce the carrying value to the estimated fair value. When the Company identifies observable transactions of the same or similar securities to those held by the Company, the Company increases or decreases the carrying value to the observable transaction price. The Company did not recognize any changes in carrying value due to observable transactions for the nine months ended September 30, 2023. The Company did not recognize any impairment on Equity Securities at Modified Cost for nine months ended September 30, 2023 as a result of the Company’s impairment analysis. The Company recognized no cumulative increases or decreases in the carrying value due to observable transactions and $7.5 million of cumulative impairments on Equity Securities at Modified Cost held as of September 30, 2023. Note 9 - Investments (Continued) Net Investment Income Net Investment Income for the nine and three months ended September 30, 2023 and 2022 was:
Gross gains and losses on sales of investments in fixed maturities and gains and losses associated with Ultra-Long Treasury Futures for the nine and three months ended September 30, 2023 and 2022 were:
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Derivative Instruments and Hedging Activities |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure | Note 10 - Derivatives The Company’s earnings, cash flows, and financial position are subject to fluctuations due to changes in prevailing interest rates. The Company entered into derivative agreements with maturity dates throughout 2023. Derivative instruments are carried at fair value on the Condensed Consolidated Balance Sheets. Derivative instruments in a gain position are presented within Other Investments and those in a loss position are included in Accrued Expenses and Other Liabilities. Changes in the fair values of derivatives are recorded on the Condensed Consolidated Statements of Loss within Net Realized Investment Gains or Accumulated Other Comprehensive Loss along with the corresponding change in the designated hedge assets. As of September 30, 2023, no derivatives qualified for hedge accounting, therefore, amounts previously held in Accumulated Other Comprehensive Loss have been recognized through the Condensed Consolidated Statements of Loss. Note 10 - Derivatives (Continued) Interest Rate Risk The Company’s debt securities valuations utilize the Treasury designated benchmark rate, exposing the Company to variability due to changes in interest rates. Interest Swap Lock The Company entered into an interest swap lock agreement in the third quarter of 2022 classified as cash flow hedges to manage exposure to changes in future purchase prices of fixed maturity securities attributable to changes in the benchmark (Treasury) interest rate. The Company assesses the effectiveness of cash flow hedges using the hypothetical derivative method. Based on the results of the assessment, the hedge was determined to be effective. The interest swap lock agreement was closed out in the first quarter of 2023. Ultra-Long Treasury Futures During 2023, the Company entered into two transactions of exchange-traded ultra-long Treasury futures (“Treasury Futures”) in order to manage exposure to upcoming changes in the benchmark (Treasury) interest rate of forecasted transactions. These derivatives expire quarterly. The Treasury Futures renewed in the third quarter of 2023. The open treasury futures do not qualify for hedge accounting. The results are shown in the Primary Risks Managed by Derivatives section below. Reverse Treasury Lock During 2022, the Company entered into a Reverse Treasury Lock agreement to manage reinvestment risk on future purchases of fixed maturity securities. The Reverse Treasury Lock agreement did not qualify for hedge accounting and matured in the first quarter of 2023. The results are shown in the Primary Risks Managed by Derivatives section below. Primary Risks Managed by Derivatives The following table presents the derivative instruments, primary underlying risk exposure, gross notional amount, and fair value of the Company’s derivatives:
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Fair Value Measurements |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements | Fair Value MeasurementsThe Company classifies its Investments in Fixed Maturities as available-for-sale and reports these investments at fair value. The Company reports equity investments with readily determinable fair values as Equity Securities at Fair Value. Certain investments that are measured at fair value using the net asset value practical expedient are not required to be classified using the fair value hierarchy, but are presented in the following two tables to permit reconciliation of the fair value hierarchy to the amounts presented in the Condensed Consolidated Balance Sheets. Note 11 - Fair Value Measurements (Continued) The valuation of assets and liabilities measured at fair value in Company’s Condensed Consolidated Balance Sheets at September 30, 2023 is summarized below.
At September 30, 2023, the Company had unfunded commitments to invest an additional $103.3 million in certain limited liability investment companies and limited partnerships that will be included in Other Equity Interests if funded. Note 11 - Fair Value Measurements (Continued) The valuation of assets measured at fair value in the Company’s Consolidated Balance Sheets at December 31, 2022 is summarized below.
Note 11 - Fair Value Measurements (Continued) The Company’s investments in Fixed Maturities that are classified as Level 1 primarily consist of U.S. Treasury Bonds and Notes. The Company’s investments in Equity Securities at Fair Value that are classified as Level 1 consist of either investments in publicly-traded common stocks or exchange traded funds. The Company’s investments in Fixed Maturities that are classified as Level 2 primarily consist of investments in corporate bonds, obligations of states and political subdivisions, collateralized loan obligations, and mortgage-backed securities of U.S. government agencies. The Company’s investments in Equity Securities at Fair Value that are classified as Level 2 primarily consist of investments in preferred stocks. The Company’s Derivative Instruments Designated as Fair Value Hedges that are classified as Level 2 primarily consist of hedges against the Company’s available for sale debt securities portfolio. The Company uses a leading, nationally recognized provider of market data and analytics to price the vast majority of the Company’s Level 2 measurements. The provider utilizes evaluated pricing models that vary by asset class and incorporate available trade, bid and other market information. Because many fixed maturity securities do not trade on a daily basis, the provider’s evaluated pricing applications apply available information through processes such as benchmark curves, benchmarking of like securities, sector groupings and matrix pricing to prepare evaluations. In addition, the provider uses model processes to develop prepayment and interest rate scenarios. The pricing provider’s models and processes also take into account market convention. For each asset class, teams of its evaluators gather information from market sources and integrate relevant credit information, perceived market movements and sector news into the evaluated pricing applications and models. The Company generally validates the measurements obtained from its primary pricing provider by comparing them with measurements obtained from one additional pricing provider that provides either prices from recent market transactions, quotes in inactive markets or evaluations based on its own proprietary models. The Company investigates significant differences related to the values provided. On completion of its investigation, management exercises judgment to determine the price selected and whether adjustments, if any, to the price obtained from the Company’s primary pricing provider would warrant classification of the price as Level 3. In instances where a measurement cannot be obtained from either pricing provider, the Company generally will evaluate bid prices from one or more binding quotes obtained from market makers to value investments in inactive markets and classified by the Company as Level 2. The Company generally classifies securities when it receives non-binding quotes or indications as Level 3 securities unless the Company can validate the quote or indication against recent transactions in the market. The table below presents quantitative information about the significant unobservable inputs utilized by the Company in determining fair values for fixed maturity investments classified as Level 3 at September 30, 2023.
The table below presents quantitative information about the significant unobservable inputs utilized by the Company in determining fair values for fixed maturity investments classified as Level 3 at December 31, 2022.
Note 11 - Fair Value Measurements (Continued) For an investment in a fixed maturity security, an increase in the yield used to determine the fair value of the security will decrease the fair value of the security. A decrease in the yield used to determine fair value will increase the fair value of the security, but for callable securities the fair value increase is generally limited to par, unless security is currently callable at a premium. Information by security type pertaining to the changes in the fair value of the Company’s investments classified as Level 3 for the nine months ended September 30, 2023 is presented below.
The transfers into and out of Level 3 were due primarily to changes in the availability of market observable inputs. Information by security type pertaining to the changes in the fair value of the Company’s investments classified as Level 3 for the three months ended September 30, 2023 is presented below.
The transfers into and out of Level 3 were due to changes in the availability of market observable inputs. Note 11 - Fair Value Measurements (Continued) Information by security type pertaining to the changes in the fair value of the Company’s investments classified as Level 3 for the nine months ended September 30, 2022 is presented below.
The transfers into and out of Level 3 were due to changes in the availability of market observable inputs. Information by security type pertaining to the changes in the fair value of the Company’s investments classified as Level 3 for the three months ended September 30, 2022 is presented below.
Note 11 - Fair Value Measurements (Continued) The table below shows investments reported at fair value using net asset value (“NAV”) and their unfunded commitments by asset class as of September 30, 2023 and December 31, 2022.
At September 30, 2023, the Company had unfunded commitments to invest an additional $192.7 million in certain limited liability investment companies and limited partnerships that will be included in Other Equity Interests and Equity Method Limited Liability Investments if funded. Note 11 - Fair Value Measurements (Continued) The fund investments included above (excluding Hedge Funds) are not redeemable, because distributions from the funds will be received when underlying investments of the funds are liquidated. The funds are generally expected to have approximately 10 year lives at their inception, but these lives may be extended at the fund manager’s discretion, typically in one or two-year increments. The hedge fund investments included above, which are carried at fair value, are generally redeemable subject to the redemption notices period. The majority of the hedge fund investments are redeemable monthly or quarterly. The following table includes information related to the Company’s investments in certain private equity funds or hedge funds that calculate a net asset value per share:
Presented below are the carrying values and fair value estimates of financial instruments not carried at fair value.
Note 11 - Fair Value Measurements (Continued) Loans to policyholders are carried at unpaid principal balance which approximates fair value and are categorized as Level 3 within the fair value hierarchy. The nature of policy loans is to have a negligible default risk as the loans are fully collateralized by the value of the policy. Policy loans do not have a stated maturity and the balances and accrued interest are repaid either by the policyholder or with proceeds from the policy. Due to the collateralized nature of policy loans and unpredictable timing of payments, the Company believes the carrying value of policy loans approximates fair value. The fair value measurement of Short-term Investments is estimated using inputs that are considered either Level 1 or Level 2 measurements. The Mortgage Loans fair value measurement is considered equal to amortized cost given the short-term nature of the investments. The fair value measurement of Equity Securities at Modified Cost is estimated using inputs that are considered Level 3 measurements. The cash surrender value of Company-Owned Life Insurance approximates fair value and is considered to be a Level 2 investment. The fair value of Long-term Debt is estimated using quoted prices for similar liabilities in markets that are not active. The inputs used in the valuation are considered Level 2 measurements. Policyholder Obligations presented in the preceding table consist of advances from the Federal Home Loan Bank (“FHLB”) of Chicago, and the inputs used in the valuation are considered Level 2 measurements.
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Variable Interest Entities |
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Equity Method Investments and Joint Ventures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Variable Interest Entity Disclosure | Variable Interest Entities A VIE is a legal entity that does not have sufficient equity at risk to finance its activities without additional subordinated financial support or is structured such that equity investors lack the ability to make significant decisions relating to the entity's operations through voting rights or do not substantively participate in the gains and losses of the entity. The Company consolidates VIEs in which the Company is deemed the primary beneficiary. The primary beneficiary is the entity that has both (1) the power to direct the activities of the VIE that most significantly affect that entity's economic performance and (2) the obligation to absorb losses or the right to receive benefits that could be potentially significant to the VIE. Reciprocal Exchange The Company has formed a management company that acts as attorney-in-fact (“AIF”) for Kemper Reciprocal (the “Reciprocal Exchange” or “Exchange”), an Illinois-domiciled reciprocal insurance exchange. The Exchange principally writes specialty personal automobile policies sold to subscribers of the Exchange. The establishment of Kemper Reciprocal was completed in the third quarter of 2023. The Company consolidates the Exchange since (1) the AIF manages the business operations of the Exchange and therefore has the power to direct the activities that most significantly impact the economic performance of the Exchange and (2) the Company has provided capital to the Exchange and would absorb any expected losses that could potentially be significant to the Exchange. The Exchange’s anticipated economic performance is the product of its underwriting and investment results. The AIF receives a management fee for the services provided to the Reciprocal Exchange. The management fee revenues are based upon all premiums written or assumed by the Exchange. The AIF determines the management fee rate to be paid by the Exchange. This rate cannot exceed 30% of the Exchange’s gross written and assumed premiums. The assets of the Reciprocal Exchange can be used only to settle the obligations of the Reciprocal Exchange for which creditors and other beneficial owners have no recourse to the Company. The Company has no obligation related to any underwriting and/or investment losses experienced by the Exchange. As of September 30, 2023, the Company contributed $4.0 million of surplus to the Reciprocal Exchange. The effects of the transactions between the Company and the Reciprocal Exchange are eliminated in consolidation to derive consolidated Net Loss. However, the management fee income earned by the AIF is reported in Net Loss attributable to Kemper Corporation and is included in the basic and diluted earnings per share. Noncontrolling interest is the portion of equity (net assets) not attributable, directly or indirectly, to a parent. Since the Company has no ownership interest in the Exchange, the difference between the value of the Exchange’s assets and liabilities represents noncontrolling interest and any income or loss generated by the net assets of the Exchange is presented as income or loss attributable to noncontrolling interest. Alternative Energy Partnership The Company invests in an Alternative Energy Partnership formed to provide sustainable energy projects that are designed to generate a return primarily through the realization of federal tax credits. This entity was formed to invest in newly installed residential solar leases and power purchase agreements. As a result of this investment, the Company has the right to certain investment tax credits and tax depreciation benefits, and to a lesser extent, cash flows generated from the installed solar systems leased to individual consumers. Note 12 - Variable Interest Entities (Continued) The Company’s interest in the Alternative Energy Partnership Investment is considered an investment in a VIE. The Company has determined that it is not the primary beneficiary as it does not have the power to direct the activities that most significantly impact the economic performance of the entity and therefore is not required to consolidate the VIE. The project sponsor governs the entity and the Company only has consent rights that have been deemed protective in nature and does not participate in key economic decisions of the entity. The investment is accounted for using the equity method of accounting and included in Alternative Energy Partnership Investments in the Condensed Consolidated Balance Sheets. The Company uses the HLBV equity method to account for earnings and losses. This method provides an earnings allocation that appropriately reflects the substantive economics of the investment. Earnings and losses on the investment are reported in Change in Value of Alternative Energy Partnership Investments and investment tax credits are recognized in Income Tax Benefit on the Consolidated Statements of Loss. The following table presents information regarding activity in the Company’s Alternative Energy Partnership Investments for the nine and three months ended September 30, 2023 and 2022.
The following table represents the carrying value of the associated assets and liabilities and the associated maximum loss exposure of the Alternative Energy Partnership Investments as of September 30, 2023 and December 31, 2022.
The Company’s maximum loss exposure in the event that all of the assets in the Alternative Energy Partnership are deemed worthless is $17.2 million and $16.3 million, which is the carrying value of the investment at September 30, 2023 and December 31, 2022, respectively.
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Other Comprehensive Income (Loss) and Accumulated Other Comprehensive Income |
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Statement of Comprehensive Income [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Comprehensive Income (Loss) and Accumulated Other Comprehensive Income | and Accumulated Other Comprehensive Loss The tables below display the changes in Accumulated Other Comprehensive Loss by component for the nine months ended September 30, 2023 and 2022.
Note 13 - Other Comprehensive Income (Loss) and Accumulated Other Comprehensive Loss (Continued) The tables below display the changes in Accumulated Other Comprehensive Loss by component for the three months ended September 30, 2023 and 2022.
Amounts reclassified from Accumulated Other Comprehensive Loss shown above are reported in Net Loss as follows:
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Stockholders’ Equity |
9 Months Ended |
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Sep. 30, 2023 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | Shareholders’ Equity Common Stock Repurchases On May 6, 2020, Kemper’s Board of Directors authorized the repurchase of up to an additional $200.0 million of Kemper’s common stock, in addition to $133.3 million remaining under the August 6, 2014 authorization, bringing the remaining share repurchase authorization to approximately $333.3 million. As of September 30, 2023, the remaining share repurchase authorization was $171.6 million under the repurchase program. During the nine and three months ended September 30, 2023 and 2022, Kemper did not repurchase any shares of its common stock. Employee Stock Purchase Plan During the nine months ended September 30, 2023 and 2022, the Company issued 68,000 and 79,000 shares under the Kemper Employee Stock Purchase Plan (“ESPP”), respectively, at an average discounted price of $40.61 and $40.54 per share. Compensation costs charged against income were $0.5 million and $0.6 million for the nine months ended September 30, 2023 and 2022, respectively. During the three months ended September 30, 2023 and 2022, the Company issued 24,000 and 31,000 shares under the ESPP at a discounted price of $35.73 and $35.07 per share, respectively. Compensation costs charged against income were $0.2 million and $0.2 million for the three months ended September 30, 2023 and 2022, respectively.
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Pension Benefits and Postretirement Benefits Other Than Pensions |
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Retirement Benefits [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pension Benefits and Postretirement Benefits Other Than Pensions | Pension Benefits and Postretirement Benefits Other Than Pensions The Company sponsored a qualified defined benefit pension plan (the “Pension Plan”) that covered approximately 3,100 participants and beneficiaries. Effective January 1, 2006, the Pension Plan was closed to new hires and, effective June 30, 2016, benefit accruals were frozen for substantially all of the participants under the Pension Plan. The Pension Plan was generally non-contributory, but participation required some employees to contribute 3% of pay, as defined, per year. Benefits for participants who were required to contribute to the Pension Plan were based on compensation during plan participation and the number of years of participation. Benefits for the vast majority of participants who are not required to contribute to the Pension Plan are based on years of service and final average pay, as defined. The Company funded the Pension Plan in accordance with the requirements of the Employee Retirement Income Security Act of 1974 (“ERISA”). In the third quarter of 2023, the Company's Pension Plan made lump-sum payments to certain inactive vested plan participants that are not currently receiving benefit payments and elected to receive lump-sum payments and purchased annuities on behalf of remaining plan participants. For plan participants who elected lump-sum payments during the election window, payments of $90.0 million were distributed. Group annuity contracts were purchased from Banner Life Insurance Company for $205.7 million for the remaining plan participants for whom Banner irrevocably assumed the pension obligations. These transactions resulted in a full settlement of the Pension Plan and a $70.2 million noncash settlement charge ($55.5 million after-tax) for the unamortized net unrecognized postretirement benefit costs related to the settled obligations recorded in Interest and Other Expenses on the Condensed Consolidated Statements of Loss. The Pension Plan continues to have approximately $16.0 million of net assets remaining in the trust after the termination and was included within Other Assets in the accompanying consolidated balance sheet as of September 30, 2023. Note 15 - Pension Benefits and Postretirement Benefits Other Than Pensions (Continued) The components of Pension Expense for the Pension Plan for the nine and three months ended September 30, 2023 and 2022 were:
The Company sponsors two other than pension postretirement benefit (“OPEB”) plans (together the “OPEB Plans”) that together provide medical, dental and/or life insurance benefits to approximately 300 retired and 500 active employees. The components of OPEB Benefit for the OPEB Plans for the nine and three months ended September 30, 2023 and 2022 were:
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Policyholder Contract Liabilities |
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Insurance [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Policyholder Contract Liabilities | Policyholder Obligations Policyholder Obligations at September 30, 2023 and December 31, 2022 were as follows:
FHLB Funding Agreements Kemper’s subsidiary, United Insurance Company of America (“United Insurance”) has entered into funding agreements with the FHLB of Chicago in exchange for cash, which it uses for spread lending purposes. During the nine months ended September 30, 2023, United Insurance received advances of $122.5 million from the FHLB of Chicago and made repayments of $166.1 million under the spread lending program. When a funding agreement is issued, United Insurance is then required to post collateral in the form of eligible securities including mortgage-backed, government, and agency debt instruments for each of the advances that are entered. The fair value of the collateral pledged must be maintained at certain specified levels above the borrowed amount, which can vary depending on the assets pledged. If the fair value of the collateral declines below these specified levels of the amount borrowed, United Insurance would be required to pledge additional collateral or repay outstanding borrowings. Upon any event of default by Note 16 - Policyholder Obligations (Continued) United Insurance, the FHLB’s recovery on the collateral is limited to the amount of United Insurance’s liability under the funding agreements to the FHLB of Chicago. United Insurance’s liability under the funding agreements with the FHLB of Chicago, the amount of collateral pledged under such agreements and FHLB of Chicago common stock owned by United Insurance at September 30, 2023 and December 31, 2022 is presented below.
Universal Life-type Policyholder Account Balances The Company’s weighted-average crediting rate for Universal Life-type Policyholder Account Balances was 5.1% as of September 30, 2023 and 2022. Guaranteed minimum benefit amounts in excess of the current account balances for these contracts were $298.2 million and $311.4 million as of September 30, 2023 and December 31, 2022, respectively. The cash surrender value of the Company’s policyholder obligations for these contracts were $97.8 million and $100.0 million as of September 30, 2023 and December 31, 2022, respectively.
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Debt | Debt Amended and Extended Credit Agreement and Term Loan Facility On March 15, 2022, the Company entered into an amended and extended credit agreement. The amended and extended credit agreement increased the borrowing capacity of the existing unsecured credit agreement to $600.0 million and extended the maturity date to March 15, 2027. Furthermore, the amended and extended credit agreement provides for an accordion feature whereby the Company can increase the revolving credit borrowing capacity by an additional $200.0 million for a total maximum capacity of $800.0 million. Financial covenants within the agreement limit the Company from accessing the maximum capacity. The amount available as of September 30, 2023 was $376.0 million. There were no outstanding borrowings under the credit agreement at either September 30, 2023 or December 31, 2022. Long-term Debt Total amortized cost of Long-term Debt outstanding at September 30, 2023 and December 31, 2022 was:
4.350% Senior Notes Due 2025 Kemper has $450.0 million aggregate principal of 4.350% senior notes due February 15, 2025 (the “2025 Senior Notes”). Kemper initially issued $250.0 million of the notes in February of 2015 and issued an additional $200.0 million of the notes in June of 2017. The additional notes are fungible with the initial notes issued in 2015, and together are treated as part of a single series for all purposes under the indenture governing the 2025 Senior Notes. The 2025 Senior Notes are unsecured and may be redeemed in whole at any time or in part from time to time at Kemper’s option at specified redemption prices. Note 17 - Debt (Continued) 2.400% Senior Notes Due 2030 Kemper has $400.0 million aggregate principal of 2.400% senior notes due September 30, 2030 (the “2030 Senior Notes”). The net issuance proceeds were $395.8 million, net of discount and transaction costs for an effective yield of 2.52%. The 2030 Senior Notes are unsecured and may be redeemed in whole at any time or in part from time to time, at Kemper’s option, at specified redemption prices. 3.800% Senior Notes Due 2032 On February 15, 2022, Kemper offered and sold $400.0 million aggregate principal of 3.800% senior notes due February 23, 2032 (the “2032 Senior Notes”). The net proceeds of issuance were $395.1 million, net of discount and transaction costs, for an effective yield of 3.950%. The 2032 Senior Notes are unsecured and may be redeemed in whole at any time or in part from time to time, at Kemper’s option, at specified redemption prices. In anticipation of the issuance of the 2032 Senior Notes and for risk management purposes, the Company entered into a derivative transaction to hedge the risk of changes in the debt cash flows attributable to changes in the benchmark U.S. Treasury interest rate during the period leading up to the debt issuance (“Treasury Lock”). The effective portion of the gain on the derivative instrument upon discontinuance was $5.9 million before taxes, and is reported as a component of Accumulated Other Comprehensive Income (Loss). Beginning with the issuance of the 2032 Senior Notes described in the preceding paragraph, such gain is being amortized into earnings and reported in Interest and Other Expenses in the same periods that the hedged items affect earnings. Amortization, reported in Interest and Other Expenses, was $0.4 million for the nine months ended September 30, 2023. The Company expects to reclassify $0.5 million of net gain on derivative instruments from AOCI to earnings for the twelve months ended September 30, 2024 as interest expense on the debt is recognized. 5.875% Fixed-Rate Reset Junior Subordinated Debentures Due 2062 On March 10, 2022, Kemper issued $150.0 million aggregate principal amount of 5.875% Fixed-Rate Reset Junior Subordinated Debentures due March 15, 2062 (the “2062 Junior Debentures”). The net proceeds from issuance were $144.7 million, net of discount and transaction costs. The 2062 Junior Debentures will bear interest from and including the date of original issue to, but excluding, March 15, 2027 (the “First Reset Date”) at the fixed rate of 5.875% per annum. The interest rate on the First Reset Date, and subsequent Reset Dates, will be equal to the Five-Year Treasury Rate as of the most recent Reset Date plus 4.140% to be reset on each Reset Date. Interest is due quarterly in arrears beginning on June 15, 2022. The Company has the option to defer interest payments for one or more optional deferral periods of up to five consecutive years, provided that no optional deferral period shall extend beyond March 15, 2062, or any earlier accelerated maturity date arising from an event of default or any earlier redemption of the 2062 Junior Debentures. The 2062 Junior Debentures are unsecured and may be redeemed in whole or in part on the First Reset Date or any time thereafter, at a redemption price equal to the principal amount of the debentures being redeemed plus any accrued and unpaid interest. Short-term Debt Kemper’s subsidiaries, United Insurance, Trinity Universal Insurance Company (“Trinity”) and American Access Casualty Company (“AAC”), are members of the FHLBs of Chicago, Dallas and Chicago, respectively. Alliance United Insurance Company (“Alliance”) was a member of the FHLB of San Francisco until it surrendered all California licenses on January 30, 2023, and ceased to exist as an insurance company. As a requirement of membership in the FHLBs, United Insurance, Trinity, and AAC maintain a certain level of investment in FHLB stock. The Company periodically uses short-term FHLB borrowings for cash management and risk management purposes, in addition to long-term FHLB borrowings for the spread lending program. No short-term debt advances from the FHLBs of Chicago or Dallas were outstanding on September 30, 2023 or December 31, 2022. For information on United Insurance’s funding agreement with the FHLB of Chicago in connection with the spread lending program, see Note 16, “Policyholder Obligations,” to the Condensed Consolidated Financial Statements. Interest Expense and Interest Paid Interest Expense, including facility fees, accretion of discount, amortization of premium and amortization of issuance costs, was $42.2 million and $14.1 million for the nine and three months ended September 30, 2023 and, respectively. Interest Note 17 - Debt (Continued) paid, including facility fees, was $47.2 million and $19.9 million for the nine and three months ended September 30, 2023, respectively. Interest Expense, including facility fees, accretion of discount and amortization of issuance costs, was $41.0 million and $14.3 million for the nine and three months ended September 30, 2022, respectively. Interest paid, including facility fees, was $49.4 million and $25.0 million for the nine and three months ended September 30, 2022, respectively.
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Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases | Leases The Company leases certain office space under non-cancelable operating leases, with initial terms typically ranging from to fifteen years, along with options that permit renewals for additional periods. The Company also leases certain vehicles and equipment under non-cancelable operating leases, with initial terms typically ranging from to five years. Minimum rent is expensed on a straight-line basis over the term of the lease. The following table presents operating lease right-of-use assets and lease liabilities.
Lease expenses are primarily included in Insurance Expenses in the Condensed Consolidated Statements of Loss. Additional information regarding the Company’s lease cost is presented below.
The Company incurred expenses of $18.0 million and $14.8 million during the nine and three months ended September 30, 2023, respectively, associated with lease abandonments. The Company had no expenses during the nine and three months ended September 30, 2022, respectively, associated with lease abandonments. Other Information on Operating Leases Supplemental cash flow information related to the Company’s operating leases for the nine months ended September 30, 2023 and 2022 is as follows:
As of September 30, 2023, the Company does not have any finance leases. Note 18 - Leases (Continued) Significant judgments and assumptions for determining lease asset and liability at September 30, 2023 and 2022 are presented below.
Most of the Company’s leases do not provide an implicit rate. Accordingly, the Company uses its incremental borrowing rate based on the information available at the commencement date to determine its lease payments’ present value. Future minimum lease payments under operating leases at September 30, 2023 are presented below. There are no significant future minimum lease payments under finance leases.
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Leases | Leases The Company leases certain office space under non-cancelable operating leases, with initial terms typically ranging from to fifteen years, along with options that permit renewals for additional periods. The Company also leases certain vehicles and equipment under non-cancelable operating leases, with initial terms typically ranging from to five years. Minimum rent is expensed on a straight-line basis over the term of the lease. The following table presents operating lease right-of-use assets and lease liabilities.
Lease expenses are primarily included in Insurance Expenses in the Condensed Consolidated Statements of Loss. Additional information regarding the Company’s lease cost is presented below.
The Company incurred expenses of $18.0 million and $14.8 million during the nine and three months ended September 30, 2023, respectively, associated with lease abandonments. The Company had no expenses during the nine and three months ended September 30, 2022, respectively, associated with lease abandonments. Other Information on Operating Leases Supplemental cash flow information related to the Company’s operating leases for the nine months ended September 30, 2023 and 2022 is as follows:
As of September 30, 2023, the Company does not have any finance leases. Note 18 - Leases (Continued) Significant judgments and assumptions for determining lease asset and liability at September 30, 2023 and 2022 are presented below.
Most of the Company’s leases do not provide an implicit rate. Accordingly, the Company uses its incremental borrowing rate based on the information available at the commencement date to determine its lease payments’ present value. Future minimum lease payments under operating leases at September 30, 2023 are presented below. There are no significant future minimum lease payments under finance leases.
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Income Taxes |
9 Months Ended |
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Sep. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The statute of limitations related to Kemper and its eligible subsidiaries’ consolidated Federal income tax returns is closed for all tax years up to and including 2011 and 2018. As a result of the Company filing amended federal income tax returns, tax years 2012 and 2013 are under limited examination for carry-back adjustments associated with the amended returns. The statute of limitations related to tax years 2014, 2015, 2016 and 2017 has been extended to June 30, 2024. Tax years 2019, 2020 and 2021 are subject to a statute of three years from the extended due dates of October 15, 2020, 2021, and 2022, respectively. The expiration of the statute of limitations related to the various state income tax returns that Kemper and its subsidiaries file varies by state. There were no Unrecognized Tax Benefits at September 30, 2023, or December 31, 2022. The Company recognizes interest and penalties, if any, related to unrecognized tax benefits in Income Tax Benefit. For the nine months ended September 30, 2023 and 2022, federal income tax refunds received, net of income taxes paid, were $113.6 million and $0.4 million, respectively. For the nine months ended September 30, 2023, state income taxes paid, net of refunds received, were $0.1 million. For the nine months ended September 30, 2022, state income taxes paid, net of refunds received, were negligible. No foreign income taxes were paid or refunds received for the nine months ended September 30, 2023 and September 30, 2022, respectively.
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Commitments and Contingencies |
9 Months Ended |
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Sep. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and ContingenciesIn the ordinary course of its businesses, the Company is involved in legal proceedings including lawsuits, arbitration, regulatory examinations, audits and inquiries. Based on currently available information, the Company does not believe that it is reasonably possible that any of its pending legal proceedings will have a material effect on the Company’s Condensed Consolidated Financial Statements and Notes to the Condensed Consolidated Financial Statements. |
Basis of Presentation and Accounting Policies (Policies) |
9 Months Ended |
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Sep. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Adoption of New Accounting Guidance and Guidance Not Yet Adopted | Adoption of New Accounting Guidance The Company has adopted all recently issued accounting pronouncements with effective dates prior to September 30, 2023. Other than discussed below, there were no adoptions of accounting pronouncements during the nine months ended September 30, 2023 that had a material impact on the Company’s Condensed Consolidated Financial Statements. Guidance Adopted in 2023
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Basis of Presentation and Accounting Policies (Tables) |
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounting Standards Update and Change in Accounting Principle | The table below presents the transition adjustment for the adoption of ASU 2018-12:
Note 1 - Basis of Presentation and Accounting Policies (Continued) For the liability for future policyholder benefits, the net transition adjustment is related to the difference in the historical discount rates used pre-transition and the discount rate at December 31, 2020. At transition, there were no adjustments related to premium deficiencies, as the balance is only applicable to Kemper’s universal life contracts which are stated at account value. The effects of adoption of ASU 2018-12 on the Condensed Consolidated Statement of Loss for the nine months ended September 30, 2022 were as follows:
The effects of adoption of ASU 2018-12 on the Condensed Consolidated Statement of Loss for the three months ended September 30, 2022 were as follows:
The effects of adoption of ASU 2018-12 on the Condensed Consolidated Balance Sheet as of December 31, 2022 were as follows:
Note 1 - Basis of Presentation and Accounting Policies (Continued) The effects of adoption of ASU 2018-12 on the Condensed Consolidated Statement of Comprehensive Loss for the nine months ended September 30, 2022 were as follows:
The effects of adoption of ASU 2018-12 on the Condensed Consolidated Statement of Comprehensive Loss for the three months ended September 30, 2022 were as follows:
The effects of adoption of ASU 2018-12 on the Condensed Consolidated Statement of Cash Flows for the nine months ended September 30, 2022 were as follows:
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Net Income Per Unrestricted Share (Tables) |
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Earnings Per Share [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Calculation of Numerator and Denominator in Earnings Per Share | A reconciliation of the numerator and denominator used in the calculation of Basic Net Loss Per Unrestricted Share and Diluted Net Loss Per Unrestricted Share for the nine and three months ended September 30, 2023 and 2022 is presented below.
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Business Segments (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue from External Customers by Products and Services | Earned Premiums by product line, including a reconciliation to Total Earned Premiums, for the nine and three months ended September 30, 2023 and 2022 were:
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Reconciliation of Revenue from Segments to Consolidated | Segment Revenues, including a reconciliation to Total Revenues, for the nine and three months ended September 30, 2023 and 2022 were:
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Reconciliation of Operating Profit (Loss) from Segments to Consolidated | , including a reconciliation to Loss before Income Taxes, for the nine and three months ended September 30, 2023 and 2022 was:
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Reconciliation of Other Significant Reconciling Items from Segments to Consolidated | , including a reconciliation to Net Loss, for the nine and three months ended September 30, 2023 and 2022 was:
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Property and Casualty Insurance Reserves (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Liability for Future Policy Benefits and Unpaid Claims and Claims Adjustment Expense [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Liability for Unpaid Claims Adjustment Expense by Expense Type | Property and casualty insurance reserve activity for the nine months ended September 30, 2023 and 2022 was:
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Premium Receivable, Allowance for Credit Loss | The following table presents receivables from policyholders, net of the allowance for expected credit losses including a roll forward of changes in the allowance for expected credit losses for the nine months ended September 30, 2023.
The following table presents receivables from policyholders, net of the allowance for expected credit losses including a roll forward of changes in the allowance for expected credit losses for the nine months ended September 30, 2022.
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Financial Services, Insurance (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Insurance [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Liability for Future Policy Benefit, Activity | The following tables summarize balances and changes in the present value of expected net premiums, present value of expected future policyholder benefits and net liability for future policyholder benefits as of and for the nine and three months ended September 30, 2023 and September 30, 2022:
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Weighted-Average Liability Duration | The weighted-average liability duration of the liability for future policyholder benefits as calculated under current rates is as follows:
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Reconciliation of Net Liability for Future Policyholder Benefits | The reconciliation of the net liability for future policyholder benefits to Life and Health Insurance Reserves in the Condensed Consolidated Balance Sheets is as follows:
1Other primarily consists of Accident and Health and Universal Life reserves
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Undiscounted Expected Gross Premiums and Expected Future Benefit Payments | The amounts of expected undiscounted future benefit payments, expected undiscounted future gross premiums and expected discounted future gross premiums, were as follows:
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Liability for Future Policy Benefits Interest Expense and Premiums | The amount of revenue and interest recognized in the Condensed Consolidated Statements of Loss is as follows:
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Weighted Average Interest Rate for Future Policyholder Benfits | The weighted-average interest rate is as follows:
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Deferred Costs, Capitalized, Prepaid, and Other Assets (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Deferred Policy Acquisition Costs | The following table presents the balances and changes in Deferred Policy Acquisition Costs for the Property and Casualty and Life and Health and business for the nine months ended September 30, 2023 and 2022:
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Investments (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Securities, Available-for-sale [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments Classified by Contractual Maturity Date | The amortized cost and fair values of the Company’s Investments in Fixed Maturities at September 30, 2023 by contractual maturity were:
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Schedule of Unrealized Loss on Investments | An aging of unrealized losses on the Company’s Investments in Fixed Maturities at September 30, 2023 is presented below.
An aging of unrealized losses on the Company’s Investments in Fixed Maturities at December 31, 2022 is presented below.
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Schedule of Other Investments | The carrying values of the Company’s Other Investments at September 30, 2023 and December 31, 2022 were:
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Investment Income | Net Investment Income for the nine and three months ended September 30, 2023 and 2022 was:
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Schedule of Realized Gain (Loss) | Gross gains and losses on sales of investments in fixed maturities and gains and losses associated with Ultra-Long Treasury Futures for the nine and three months ended September 30, 2023 and 2022 were:
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Investments in Fixed Maturities | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Securities, Available-for-sale [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Available-for-sale Securities Reconciliation | The amortized cost and fair values of the Company’s Investments in Fixed Maturities at September 30, 2023 were:
The amortized cost and fair values of the Company’s Investments in Fixed Maturities at December 31, 2022 were:
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Derivative Instruments and Hedging Activities (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Derivatives Instruments Statements of Financial Performance and Financial Position, Location | The following table presents the derivative instruments, primary underlying risk exposure, gross notional amount, and fair value of the Company’s derivatives:
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Fair Value Measurements (Tables) |
3 Months Ended | 9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2022 |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | The valuation of assets and liabilities measured at fair value in Company’s Condensed Consolidated Balance Sheets at September 30, 2023 is summarized below.
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The valuation of assets measured at fair value in the Company’s Consolidated Balance Sheets at December 31, 2022 is summarized below.
Note 11 - Fair Value Measurements (Continued) The Company’s investments in Fixed Maturities that are classified as Level 1 primarily consist of U.S. Treasury Bonds and Notes. The Company’s investments in Equity Securities at Fair Value that are classified as Level 1 consist of either investments in publicly-traded common stocks or exchange traded funds. The Company’s investments in Fixed Maturities that are classified as Level 2 primarily consist of investments in corporate bonds, obligations of states and political subdivisions, collateralized loan obligations, and mortgage-backed securities of U.S. government agencies. The Company’s investments in Equity Securities at Fair Value that are classified as Level 2 primarily consist of investments in preferred stocks. The Company’s Derivative Instruments Designated as Fair Value Hedges that are classified as Level 2 primarily consist of hedges against the Company’s available for sale debt securities portfolio. The Company uses a leading, nationally recognized provider of market data and analytics to price the vast majority of the Company’s Level 2 measurements. The provider utilizes evaluated pricing models that vary by asset class and incorporate available trade, bid and other market information. Because many fixed maturity securities do not trade on a daily basis, the provider’s evaluated pricing applications apply available information through processes such as benchmark curves, benchmarking of like securities, sector groupings and matrix pricing to prepare evaluations. In addition, the provider uses model processes to develop prepayment and interest rate scenarios. The pricing provider’s models and processes also take into account market convention. For each asset class, teams of its evaluators gather information from market sources and integrate relevant credit information, perceived market movements and sector news into the evaluated pricing applications and models. The Company generally validates the measurements obtained from its primary pricing provider by comparing them with measurements obtained from one additional pricing provider that provides either prices from recent market transactions, quotes in inactive markets or evaluations based on its own proprietary models.
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Fair Value Measurement Inputs and Valuation Techniques | The table below presents quantitative information about the significant unobservable inputs utilized by the Company in determining fair values for fixed maturity investments classified as Level 3 at December 31, 2022.
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The table below presents quantitative information about the significant unobservable inputs utilized by the Company in determining fair values for fixed maturity investments classified as Level 3 at September 30, 2023.
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Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation | Information by security type pertaining to the changes in the fair value of the Company’s investments classified as Level 3 for the nine months ended September 30, 2023 is presented below.
The transfers into and out of Level 3 were due primarily to changes in the availability of market observable inputs. Information by security type pertaining to the changes in the fair value of the Company’s investments classified as Level 3 for the three months ended September 30, 2023 is presented below.
The transfers into and out of Level 3 were due to changes in the availability of market observable inputs. Note 11 - Fair Value Measurements (Continued) Information by security type pertaining to the changes in the fair value of the Company’s investments classified as Level 3 for the nine months ended September 30, 2022 is presented below.
The transfers into and out of Level 3 were due to changes in the availability of market observable inputs. Information by security type pertaining to the changes in the fair value of the Company’s investments classified as Level 3 for the three months ended September 30, 2022 is presented below.
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Fair Value, by Balance Sheet Grouping | Presented below are the carrying values and fair value estimates of financial instruments not carried at fair value.
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Variable Interest Entities (Tables) |
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Equity Method Investments and Joint Ventures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Variable Interest Entities | The following table presents information regarding activity in the Company’s Alternative Energy Partnership Investments for the nine and three months ended September 30, 2023 and 2022.
The following table represents the carrying value of the associated assets and liabilities and the associated maximum loss exposure of the Alternative Energy Partnership Investments as of September 30, 2023 and December 31, 2022.
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Other Comprehensive Income (Loss) and Accumulated Other Comprehensive Income (Tables) |
3 Months Ended | 9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
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Statement of Comprehensive Income [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Comprehensive Income | The tables below display the changes in Accumulated Other Comprehensive Loss by component for the three months ended September 30, 2023 and 2022.
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The tables below display the changes in Accumulated Other Comprehensive Loss by component for the nine months ended September 30, 2023 and 2022.
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Pension Benefits and Postretirement Benefits Other Than Pensions (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pension Plans | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Defined Benefit Plans Disclosures | The components of Pension Expense for the Pension Plan for the nine and three months ended September 30, 2023 and 2022 were:
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Postretirement Benefits Other than Pensions | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Defined Benefit Plans Disclosures | The components of OPEB Benefit for the OPEB Plans for the nine and three months ended September 30, 2023 and 2022 were:
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Policyholder Contract Liabilities (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Insurance [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Liability for Future Policy Benefits, by Product Segment | Policyholder Obligations at September 30, 2023 and December 31, 2022 were as follows:
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Schedule of Federal Home Loan Bank, Advances, by Branch of FHLB Bank | United Insurance’s liability under the funding agreements with the FHLB of Chicago, the amount of collateral pledged under such agreements and FHLB of Chicago common stock owned by United Insurance at September 30, 2023 and December 31, 2022 is presented below.
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Debt (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Long-term Debt Instruments | Total amortized cost of Long-term Debt outstanding at September 30, 2023 and December 31, 2022 was:
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Leases (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Lease, Cost | The following table presents operating lease right-of-use assets and lease liabilities.
Lease expenses are primarily included in Insurance Expenses in the Condensed Consolidated Statements of Loss. Additional information regarding the Company’s lease cost is presented below.
Supplemental cash flow information related to the Company’s operating leases for the nine months ended September 30, 2023 and 2022 is as follows:
As of September 30, 2023, the Company does not have any finance leases. Note 18 - Leases (Continued) Significant judgments and assumptions for determining lease asset and liability at September 30, 2023 and 2022 are presented below.
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Lessee, Operating Lease, Liability, to be Paid, Maturity | Future minimum lease payments under operating leases at September 30, 2023 are presented below. There are no significant future minimum lease payments under finance leases.
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Intangible Assets, Goodwill and Other (Details) $ in Millions |
3 Months Ended |
---|---|
Sep. 30, 2023
USD ($)
| |
Goodwill [Line Items] | |
Goodwill, Impaired, Accumulated Impairment Loss | $ 49.6 |
Preferred Property & Casualty Insurance [Member] | |
Goodwill [Line Items] | |
Goodwill, net of tax impairment charge | $ 45.5 |
Property and Casualty Insurance Reserves - Allowance for Credit Losses from Policyholders (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2022 |
Sep. 30, 2023 |
Dec. 31, 2022 |
Dec. 31, 2021 |
|
Premium Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Premium Receivable, Allowance for Credit Loss, Beginning Balance | $ 13.1 | |||
Premium Receivable, Allowance for Credit Loss, Ending Balance | $ 12.5 | 13.5 | ||
Receivables from Policyholders (Allowance for Credit Losses: 2023 - $13.5; 2022 - $13.1) | 1,349.1 | 1,102.6 | $ 1,286.6 | $ 1,418.7 |
Receivables from policyholders, net of allowance for expected credit losses | 1,102.6 | 1,286.6 | ||
Premium receivables, allowance for credit losses | 12.5 | 13.5 | $ 13.1 | $ 13.6 |
Provision for Expected Credit Losses | 36.7 | 32.8 | ||
Premium Receivable, Allowance for Credit Loss, Writeoff | $ 37.8 | $ 32.4 |
Investments - Schedule of Other Investments (Details) - USD ($) $ in Millions |
Sep. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Investments, Debt and Equity Securities [Abstract] | ||
Convertible Securities at Fair Value | $ 45.9 | $ 43.3 |
Real Estate at Depreciated Cost | 95.4 | 93.6 |
Mortgage Loans | 98.5 | 91.1 |
Investments and Other Noncurrent Assets | 0.2 | 3.5 |
Total | 273.1 | 269.9 |
Equity Securities at Modified Cost | $ 33.1 | $ 38.4 |
Investments - Net Realized Gains on Sales of Investments (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
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Fixed Maturities | ||||
Net Investment Income [Line Items] | ||||
Gains on Sales | $ 0.8 | $ 14.2 | $ 2.3 | $ 28.0 |
Losses on Sales | (1.2) | (23.9) | (10.5) | (27.5) |
Derivative | ||||
Net Investment Income [Line Items] | ||||
Gain (Loss) on Hedging Activity | $ (29.4) | $ (0.3) | $ (29.7) | $ 0.0 |
Derivative Instruments and Hedging Activities (Details) - USD ($) $ in Millions |
Sep. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Derivative [Line Items] | ||
Derivative Assets (Liabilities), at Fair Value, Net | $ 0.0 | |
Not Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Derivative Assets (Liabilities), at Fair Value, Net | 15.6 | $ 1.7 |
Fair Value Hedging | Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Derivative Assets (Liabilities), at Fair Value, Net | 0.4 | |
Interest Rate Swap | Fair Value Hedging | Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | 0.0 | 5.0 |
Treasury Lock | Not Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | 202.5 | 0.0 |
Reverse Treasury Lock | Not Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | $ 0.0 | $ 100.0 |
Pension Benefits and Postretirement Benefits Other Than Pensions - Narrative (Details) $ in Millions |
3 Months Ended | 9 Months Ended |
---|---|---|
Sep. 30, 2023
USD ($)
employees
|
Sep. 30, 2023
USD ($)
|
|
Pension Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Number of participants and beneficiaries | employees | 3,100 | |
Percentage of compensation (as a percent) | 3.00% | |
Payments to participants of pension plan | $ 90.0 | |
Contract purchase amount | 205.7 | $ 205.7 |
Noncash settlement charge | 70.2 | |
Net assets of pension plan | 16.0 | $ 16.0 |
Noncash settlement charge, after tax | $ 55.5 | |
Postretirement Benefits Other than Pensions | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Number of retired employees covered | employees | 300 | |
Number of active employees covered | employees | 500 |
Pension Benefits and Postretirement Benefits Other Than Pensions - Pension Income (Details) - Pension Plans - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Defined Benefit Plan Disclosure [Line Items] | ||||
Interest Cost on Projected Benefit Obligation | $ 1.5 | $ 2.2 | $ 8.4 | $ 6.5 |
Expected Return on Plan Assets | (1.4) | (1.9) | (7.9) | (5.6) |
Amortization of Prior Service Credit | 0.1 | 0.2 | 0.4 | 0.5 |
Amortization of Net Actuarial Loss | 0.0 | 0.4 | 0.0 | 1.3 |
Defined Benefit Plan, Plan Assets, Payment for Settlement | 70.2 | 0.0 | 70.2 | 0.0 |
Total Pension Expense | $ 70.4 | $ 0.9 | $ 71.1 | $ 2.7 |
Pension Benefits and Postretirement Benefits Other Than Pensions - Components of OPEB Benefits (Details) - Postretirement Benefits Other than Pensions - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Service Cost | $ 0.0 | $ 0.0 | $ 0.1 | $ 0.1 |
Interest Cost on Accumulated Postretirement Benefit Obligation | 0.1 | 0.0 | 0.3 | 0.1 |
Amortization of Prior Service Credit | (0.3) | (0.3) | (1.0) | (1.0) |
Amortization of Net Gain | (0.4) | (0.5) | (1.3) | (1.3) |
Total Pension Expense | $ (0.6) | $ (0.8) | $ (1.9) | $ (2.1) |
Policyholder Contract Liabilities - Policyholder Contract Liabilities (Details) - USD ($) $ in Millions |
Sep. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Policyholder Obligations | $ 656.3 | $ 701.3 |
United Insurance Company of America | Federal Home Loan Bank of Chicago | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
FHLB of Chicago Common Stock Owned at Cost | 16.6 | 17.5 |
FHLB Funding Agreements | United Insurance Company of America | Federal Home Loan Bank of Chicago | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Policyholder Obligations | 557.4 | 601.0 |
Universal Life-type Policyholder Account Balances | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Policyholder Obligations | $ 98.9 | $ 100.3 |
Policyholder Contract Liabilities - Narrative (Details) - USD ($) $ in Millions |
9 Months Ended | |
---|---|---|
Sep. 30, 2023 |
Dec. 31, 2022 |
|
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Policyholder Account Balance, Weighted Average Crediting Rate | 5.10% | |
Liabilities for Guarantees on Long-Duration Contracts, Guaranteed Benefit Liability, Net | $ 298.2 | $ 311.4 |
Policyholder Account Balance, Cash Surrender Value | 97.8 | $ 100.0 |
United Insurance Company of America | Federal Home Loan Bank of Chicago | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Federal Home Loan Bank, amount of advances | 122.5 | |
Payments of FHLBank borrowings | $ 166.1 |
Policyholder Contract Liabilities - Supplemental Financial Information (Details) - USD ($) $ in Millions |
Sep. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Policyholder Obligations | $ 656.3 | $ 701.3 |
Federal Home Loan Bank of Chicago | United Insurance Company of America | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Fair Value of Collateral Pledged | 619.1 | 744.6 |
Federal Home Loan Bank of Chicago | United Insurance Company of America | FHLB Funding Agreements | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Policyholder Obligations | $ 557.4 | $ 601.0 |
Leases - Narrative (Details) $ in Millions |
3 Months Ended | 9 Months Ended |
---|---|---|
Sep. 30, 2023
USD ($)
|
Sep. 30, 2023
USD ($)
|
|
Lessee, Lease, Description [Line Items] | ||
Gain (Loss) on Termination of Lease | $ 14.8 | $ 18.0 |
Minimum | Building | ||
Lessee, Lease, Description [Line Items] | ||
Lessee, operating lease, term of contract | 1 year | 1 year |
Minimum | Equipment | ||
Lessee, Lease, Description [Line Items] | ||
Lessee, operating lease, term of contract | 1 year | 1 year |
Maximum | Building | ||
Lessee, Lease, Description [Line Items] | ||
Lessee, operating lease, term of contract | 15 years | 15 years |
Maximum | Equipment | ||
Lessee, Lease, Description [Line Items] | ||
Lessee, operating lease, term of contract | 5 years | 5 years |
Leases - Right of Use Assets and Liabilities (Details) (Details) - USD ($) $ in Millions |
Sep. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Leases [Abstract] | ||
Operating Lease Right-of-Use Assets | $ 34.7 | $ 45.1 |
Operating Lease Liabilities | $ 60.6 | $ 72.6 |
Leases - Lease Cost (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Lease Cost | ||||
Operating Lease Cost | $ 4.0 | $ 5.8 | $ 11.9 | $ 17.2 |
Variable Lease, Cost | 1.0 | 0.1 | 3.2 | 0.2 |
Short-Term Lease Cost | (0.3) | 1.0 | 0.5 | 3.2 |
Total Lease Expense | 4.7 | 6.9 | 15.6 | 20.6 |
Less: Sublease Income | 0.0 | 0.0 | 0.0 | 0.1 |
Lease, Cost | $ 4.7 | $ 6.9 | $ 15.6 | $ 20.5 |
Leases - Supplemental Cash Flow Information (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended |
---|---|---|
Sep. 30, 2022 |
Sep. 30, 2023 |
|
Leases [Abstract] | ||
Operating Cash Flows from Operating Lease (Fixed Payments) | $ 19.1 | $ 19.6 |
Operating Cash Flows from Operating Lease (Liability Reduction) | 17.1 | 17.8 |
Right-of-Use Assets Obtained in Exchange for New Operating Lease Liabilities | $ 10.1 | $ 6.6 |
Leases - Lease Weighted Average (Details) |
Sep. 30, 2023 |
Sep. 30, 2022 |
---|---|---|
Leases [Abstract] | ||
Weighted-average Remaining Lease Term - Finance Leases | 3 months 18 days | |
Weighted-average Remaining Lease Term - Operating Leases | 5 years 7 months 6 days | 5 years 7 months 6 days |
Weighted-average Discount Rate - Finance Leases | 0.60% | |
Weighted-average Discount Rate - Operating Leases | 4.00% | 3.40% |
Leases - Future Minimum Lease Payments Under Finance and Operating Leases (Details) - USD ($) $ in Millions |
Sep. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | ||
Remainder of 2023 | $ 5.7 | |
2024 | 19.3 | |
2025 | 14.5 | |
2026 | 8.5 | |
2027 | 6.3 | |
2028 and Thereafter | 19.1 | |
Total Future Payments | 73.4 | |
Less Imputed Interest | 12.8 | |
Present Value of Minimum Lease Payments | $ 60.6 | $ 72.6 |
Income Taxes - Narrative (Details) - USD ($) |
9 Months Ended | |
---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Income Tax Disclosure [Abstract] | ||
Unrecognized tax benefits | $ 0 | |
Proceeds from Income Tax Refunds | 113,600,000 | $ 400,000 |
Income taxes paid, net | $ 100,000 |
Label | Element | Value |
---|---|---|
Cash, Cash Equivalents, Restricted Cash, and Restricted Cash Equivalents, Including Disposal Group and Discontinued Operations | us-gaap_CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsIncludingDisposalGroupAndDiscontinuedOperations | $ 148,200,000 |
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