Summary of Accounting Policies and Accounting Changes (Tables)

12 Months Ended

Dec. 31, 2023

Premium Receivable, Allowance for Credit Loss

The following table presents a rollforward of changes in the allowance for expected credit losses for the year ended December 31, 2023.


(Dollars in Millions)	Specialty		Life		Total Segments		Non-Core Operations		Total Allowance for Expected Credit Losses
Balance at Beginning of Year	$	12.3	$	—	$	12.3	$	0.8	$	13.1
Provision for Expected Credit Losses	39.3		0.5		39.8		1.8		41.6
Write-offs of Uncollectible Receivables from Policyholders	(38.7)		(0.5)		(39.2)		(1.6)		(40.8)
Balance at End of Year	$	12.9	$	—	$	12.9	$	1.0	$	13.9

Receivable Balance at End of Year	$	875.4	$	11.3	$	886.7	$	73.5	$	960.2

The following table presents a rollforward of changes in the allowance for expected credit losses for the year ended December 31, 2022.


(Dollars in Millions)	Specialty		Life		Total Segments		Non-Core Operations		Total Allowance for Expected Credit Losses
Balance at Beginning of Year	$	12.8	$	—	$	12.8	$	0.8	$	13.6
Provision for Expected Credit Losses	44.4		1.1		45.5		2.5		48.0
Write-offs of Uncollectible Receivables from Policyholders	(44.9)		(1.1)		(46.0)		(2.5)		(48.5)
Balance at End of Year	$	12.3	$	—	$	12.3	$	0.8	$	13.1

Receivable Balance at End of Year	$	1,166.9	$	11.0	$	1,177.9	$	108.7	$	1,286.6

Accounting Standards Update and Change in Accounting Principle

The table below presents the transition adjustment for the adoption of ASU 2018-12:


	Pre-Adoption Balance 12/31/2020		Adjustments to AOCI	Adjustments to Retained Earnings	Post- Adoption Balance 1/1/2021



Retained Earnings	$	2,071.2	—	(25.1)	$	2,046.1
AOCI	$	680.5	(1,030.3)	—	$	(349.8)

The effects of adoption of ASU 2018-12 on the Consolidated Statement of Loss for the years ended December 31, 2022 and 2021 were as follows:


	2022						2021
	Prior to Adoption		Effect of Adoption		Post- Adoption Balance		Prior to Adoption		Effect of Adoption		Post- Adoption Balance
Earned Premiums	$	5,266.3	(52.9)		$	5,213.4	$	5,253.7	(74.5)		$	5,179.2
Policyholders’ Benefits and Incurred Losses and Loss Adjustment Expenses	$	4,504.4	(71.8)		$	4,432.6	$	4,600.8	(81.2)		$	4,519.6
Insurance Expenses	$	1,200.6	0.4		$	1,201.0	$	1,218.1	10.7		$	1,228.8
Income Tax Benefit	$	88.3	(3.9)		$	84.4	$	124.8	0.8		$	125.6
Net Loss attributable to Kemper Corporation	$	(301.2)	14.6		$	(286.6)	$	(120.5)	(3.2)		$	(123.7)

Net Loss Per Unrestricted Share attributable to Kemper Corporation:
Basic	$	(4.72)	$	0.22	$	(4.50)	$	(1.87)	$	(0.05)	$	(1.92)
Diluted	$	(4.72)	$	0.22	$	(4.50)	$	(1.87)	$	(0.05)	$	(1.92)

NOTE 2. SUMMARY OF ACCOUNTING POLICIES AND ACCOUNTING CHANGES (Continued)

The effects of adoption of ASU 2018-12 on the Consolidated Balance Sheet as of December 31, 2022 were as follows:


	Prior to Adoption		Effect of Adoption	Post- Adoption Balance
Deferred Policy Acquisition Costs	$	625.6	10.0	$	635.6
Deferred Income Tax Assets	$	189.4	(60.4)	$	129.0
Total Assets	$	13,364.0	(50.4)	$	13,313.6
Life and Health Insurance Reserves	$	3,554.0	(277.8)	$	3,276.2
Total Liabilities	$	10,920.8	(277.8)	$	10,643.0
Retained Earnings	$	1,380.1	(13.7)	$	1,366.4
Accumulated Other Comprehensive Loss	$	(756.0)	241.1	$	(514.9)
Total Shareholders’ Equity attributable to Kemper Corporation	$	2,443.2	227.4	$	2,670.6

The effects of adoption of ASU 2018-12 on the Consolidated Statement of Comprehensive Loss for the years ended December 31, 2022 and 2021 were as follows:


	2022					2021
	Prior to Adoption		Effect of Adoption	Post- Adoption Balance		Prior to Adoption		Effect of Adoption		Post- Adoption Balance
Change in Discount Rate on Future Life Policyholder Benefits	$	—	1,380.7	$	1,380.7	$	—	$	228.5	$	228.5
Other Comprehensive Loss Before Income Taxes	$	(1,524.4)	1,380.7	$	(143.7)	$	(294.8)	$	228.5	$	(66.3)
Other Comprehensive Income Tax Benefit	$	320.3	(289.9)	$	30.4	$	62.4	$	(47.9)	$	14.5
Other Comprehensive Loss, Net of Taxes	$	(1,204.1)	1,090.8	$	(113.3)	$	(232.4)	$	180.6	$	(51.8)
Total Comprehensive Loss	$	(1,505.3)	1,105.4	$	(399.9)	$	(352.9)	$	177.4	$	(175.5)

The effects of adoption of ASU 2018-12 on the Consolidated Statement of Cash Flows for the years ended December 31, 2022 and 2021 were as follows:


	2022					2021
	Prior to Adoption		Effect of Adoption	Post- Adoption Balance		Prior to Adoption		Effect of Adoption	Post- Adoption Balance
Cash Flows from Operating Activities:
Net Loss	$	(301.2)	14.6	$	(286.6)	$	(120.5)	(3.2)	$	(123.7)
Change in Deferred Policy Acquisition Costs	$	13.8	0.4	$	14.2	$	(88.3)	10.7	$	(77.6)
Change in Insurance Reserves	$	45.4	(18.9)	$	26.5	$	623.1	(6.7)	$	616.4
Change in Income Taxes	$	(87.5)	3.9	$	(83.6)	$	(163.1)	(0.8)	$	(163.9)
Net Cash Used in Operating Activities	$	(210.3)	—	$	(210.3)	$	350.7	—	$	350.7