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Deferred Policy Acquisition Costs
 12 Months Ended
Dec. 31, 2024
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 Specialty Property and Casualty Insurance segment, Life Insurance segment, and Non-Core Operations business for the years ended December 31, 2024, 2023 and 2022:
DOLLARS IN MILLIONS
Specialty
Life
Segment Total
Non-Core Operations
Total
Balance, January 1, 2022
$219.0 $419.8 $638.8 $49.2 $688.0 
Capitalizations1
543.4 27.0 570.4 82.4 652.8 
Amortization Expense2
(569.7)(42.0)(611.7)(93.5)(705.2)
Balance, December 31, 2022
$192.7 $404.8 $597.5 $38.1 $635.6 
Capitalizations446.3 62.1 508.4 54.9 563.3 
Amortization Expense2
(496.4)(39.9)(536.3)(71.0)(607.3)
Balance, December 31, 2023
$142.6 $427.0 $569.6 $22.0 $591.6 
Capitalizations494.3 68.7 563.0 13.4 576.4 
Amortization Expense2
(474.1)(32.6)(506.7)(31.3)(538.0)
Balance, December 31, 20243
$162.8 $463.1 $625.9 $4.1 $630.0 
1 Capitalizations for the Life Insurance segment includes a reduction of $38.7 million related to divested business.
2 The Life Insurance segment includes increases to amortization expense related to experience adjustments of $7.4 million, $15.6 million, and $8.7 million for the years ended December 31, 2024, 2023, and 2022, respectively.
3 Includes $1.1 million attributable to Kemper Reciprocal as of December 31, 2024, which is reported as a consolidated variable interest entity.
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 are updated concurrently.
The Company made changes to future assumptions in the fourth quarter for the Life and Health business for the years ended December 31, 2024, 2023, and 2022.