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Business Segments
 12 Months Ended
Dec. 31, 2023
Segment Reporting [Abstract]  
Business Segments BUSINESS SEGMENTS
In 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 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 reclassified to reflect the change in reportable segments and the segment measure of performance.
The Company is engaged, through its subsidiaries, in the property and casualty insurance and life and health insurance businesses. The Company conducts its operations through two operating segments: Specialty Property & Casualty Insurance, and Life Insurance.
The Specialty Property & Casualty Insurance segment’s principal products are specialty automobile and commercial automobile insurance. These products are distributed primarily through independent agents and brokers. The Life Insurance segment’s (formerly referred to as “Life & Health Insurance”) principal products are individual life, accident, supplemental health and property insurance. Career agents employed by the Company distribute these products. 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.
NOTE 5. BUSINESS SEGMENTS (Continued)
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 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.
The Company’s earned premiums are derived in the United States. The accounting policies of the segments are the same as those described in Note 2, “Summary of Accounting Policies and Accounting Changes,” to the Consolidated Financial Statements. Capital expenditures for long-lived assets by operating segment are immaterial.
It is the Company’s management practice to allocate certain corporate expenses, primarily compensation costs for corporate employees and related facility costs, included in Interest and Other Expenses in the Consolidated Statements of (Loss) Income to its insurance operations. The amount of such allocated corporate expenses was $114.4 million, $127.8 million and $121.9 million for the years ended December 31, 2023, 2022 and 2021, respectively. The Company does not allocate Income (Loss) from Change in Fair Value of Equity and Convertible Securities, Net Realized Investment (Losses) Gains, Impairment Losses, Acquisition and Disposition Related Transaction, Integration, Restructuring and Other Costs, Debt Extinguishment, Pension Settlement and Other Charges, Goodwill Impairment Charge, Non-Core Operations, and Significant non-recurring or infrequent items that may not be indicative of ongoing operations to its operating segments.
Total Segment, Non-Core Operations, and Corporate and Other assets at December 31, 2023 and 2022 were:
DOLLARS IN MILLIONS20232022
Segment Assets:
Specialty Property & Casualty Insurance$6,145.9 $6,535.3 
Life Insurance4,898.1 5,008.0 
Total Segment Assets11,044.0 11,543.3 
Corporate and Other623.7 545.4 
Non-Core Operations1,075.0 1,224.9 
Total Assets$12,742.7 $13,313.6 
NOTE 5. BUSINESS SEGMENTS (Continued)
Earned Premiums by product line for the years ended December 31, 2023, 2022 and 2021 were:
DOLLARS IN MILLIONS202320222021
Specialty Property & Casualty Insurance:
Personal Automobile$2,977.8 $3,496.7 $3,533.7 
Commercial Automobile654.7 549.7 414.8 
Life Insurance:
Life319.2 352.8 327.2 
Accident and Health23.1 168.2 189.9 
Property45.3 50.5 61.9 
Total Segment Earned Premiums4,020.1 4,617.9 4,527.5 
Non-Core Operations509.3 595.5 651.7 
Total Earned Premiums$4,529.4 $5,213.4 $5,179.2 
Segment Revenues, including a reconciliation to Total Revenues, for the years ended December 31, 2023, 2022 and 2021 were:
DOLLARS IN MILLIONS202320222021
Segment Revenues:
Specialty Property & Casualty Insurance:
Earned Premiums$3,632.5 $4,046.4 $3,948.5 
Net Investment Income168.3 140.7 152.5 
Change in Value of Alternative Energy Partnership Investments1.6 (9.9)(29.0)
Other Income4.5 6.0 4.1 
Total Specialty Property & Casualty Insurance3,806.9 4,183.2 4,076.1 
Life Insurance:
Earned Premiums387.6 571.5 579.0 
Net Investment Income193.4 216.5 202.7 
Change in Value of Alternative Energy Partnership Investments0.7 (5.3)(15.8)
Other Income(0.2)(0.6)(1.3)
Total Life Insurance581.5 782.1 764.6 
Total Segment Revenues4,388.4 4,965.3 4,840.7 
Income (Loss) from Change in Fair Value of Equity and Convertible Securities4.7 (79.9)114.6 
Net Realized Investment (Losses) Gains(18.6)4.3 64.8 
Net Impairment Losses Recognized in Earnings(1.1)(25.8)(11.0)
Non-Core Operations558.4 640.5 704.0 
Other12.4 19.5 5.4 
Total Revenues$4,944.2 $5,523.9 $5,718.5 
NOTE 5. BUSINESS SEGMENTS (Continued)
Adjusted Consolidated Operating Loss, including a reconciliation to Loss before Income Taxes attributable to Kemper Corporation, for the years ended December 31, 2023, 2022 and 2021 was:
DOLLARS IN MILLIONS202320222021
Segment Adjusted Operating (Loss) Income:
Specialty Property & Casualty Insurance$(76.3)$(196.9)$(292.1)
Life Insurance62.3 78.0 6.5 
Total Segment Adjusted Operating Loss
(14.0)(118.9)(285.6)
Corporate and Other Adjusted Operating Loss
(55.2)(47.7)(48.4)
Less: Loss before Income Taxes attributable to Noncontrolling Interest(0.3)— — 
Adjusted Consolidated Operating Loss
(68.9)(166.6)(334.0)
Income (Loss) from Change in Fair Value of Equity and Convertible Securities
4.7 (79.9)114.6 
Net Realized Investment (Losses) Gains
(18.6)4.3 64.8 
Impairment Losses(1.1)(25.8)(11.0)
Acquisition and Disposition Related Transaction, Integration, Restructuring and Other Costs(120.3)(62.9)(43.9)
Debt Extinguishment, Pension Settlement, and Other Charges(70.2)(3.7)— 
Goodwill Impairment Charge(49.6)— — 
Non-Core Operations(22.8)(36.4)(39.8)
Loss before Income Taxes attributable to Kemper Corporation
$(346.8)$(371.0)$(249.3)
Adjusted Consolidated Net Operating Loss, including a reconciliation to Net Loss attributable to Kemper Corporation, for the years ended December 31, 2023, 2022 and 2021 was:
DOLLARS IN MILLIONS202320222021
Segment Adjusted Net Operating (Loss) Income:
Specialty Property & Casualty Insurance$(57.1)$(147.4)$(196.1)
Life Insurance51.8 68.8 25.0 
Total Segment Adjusted Net Operating Loss
(5.3)(78.6)(171.1)
Corporate and Other Adjusted Net Operating Loss(42.1)(37.8)(38.4)
Less: Net Loss attributable to Noncontrolling Interest(0.2)— — 
Adjusted Consolidated Net Operating Loss
(47.2)(116.4)(209.5)
Net Income (Loss) From:
Change in Fair Value of Equity and Convertible Securities3.7 (63.1)90.5 
Net Realized Investment (Losses) Gains
(14.7)3.4 51.2 
Impairment Losses(0.9)(20.4)(8.7)
Acquisition and Disposition Related Transaction, Integration, Restructuring and Other Costs(95.0)(61.3)(34.7)
Debt Extinguishment, Pension Settlement, and Other Charges(55.5)(2.9)— 
Goodwill Impairment Charges(45.5)— — 
Non-Core Operations(17.0)(25.9)(12.5)
Net Loss Attributable to Kemper Corporation
$(272.1)$(286.6)$(123.7)