Income Taxes (Tables)

12 Months Ended

Dec. 31, 2024

Schedule of Deferred Tax Assets and Liabilities

The tax effects of temporary differences that give rise to significant portions of the Company’s Net Deferred Income Tax Assets and Deferred Income Tax Liabilities at December 31, 2024 and 2023 were:


DOLLARS IN MILLIONS	2024		2023
Deferred Income Tax Assets:

Unearned Premium Reserves	$	52.8	$	54.0
Tax Capitalization of Policy Acquisition Costs	49.5		46.3
Payroll and Employee Benefit Accruals	34.7		34.8
Investments	147.6		103.4
Net Operating Loss and Credit Carryforwards	14.0		114.6
Other	45.9		32.2
Subtotal	344.5		385.3
Valuation Allowance	(38.7)		(27.4)
Total Deferred Income Tax Assets	305.8		357.9
Deferred Income Tax Liabilities:
Insurance Reserves	39.5		12.7
Deferred Policy Acquisition Costs	132.3		124.3

Goodwill and Other Intangible Assets	35.0		35.8
Depreciable Assets	14.6		19.3
Other	4.4		6.0
Total Deferred Income Tax Liabilities	225.8		198.1

Net Deferred Income Tax Assets1	$	80.0	$	159.8
1 Includes $1.5 million attributable to Kemper Reciprocal, which is reported as a consolidated variable interest entity.

Summary of Operating Loss Carryforwards

The expiration of federal net operating loss (“NOL”) carryforwards and their related deferred income tax assets at December 31, 2024 is presented below by year of expiration.


DOLLARS IN MILLIONS	NOL Carry-forwards		Deferred Tax Asset
Expiring in:





2043	0.3		0.1
2044	6.0		1.3
No Expiration	60.2		12.6
Total All Years	$	66.5	$	14.0

Schedule of Components of Income Tax Expense (Benefit)

The components of Income Tax Expense (Benefit) from Operations for the years ended December 31, 2024, 2023 and 2022 were:


DOLLARS IN MILLIONS	2024		2023		2022
Current Income Tax Expense (Benefit)	$	11.9	$	(4.0)	$	6.2
Deferred Income Tax Expense (Benefit)	64.1		(70.8)		(90.6)

Income Tax Expense (Benefit)	$	76.0	$	(74.8)	$	(84.4)

Schedule of Effective Income Tax Rate Reconciliation

A reconciliation of the Statutory Federal Income Tax Expense (Benefit) and Rate to the Company’s Effective Income Tax Expense (Benefit) and Rate from Operations for the years ended December 31, 2024, 2023 and 2022 is presented below.


DOLLARS IN MILLIONS	2024				2023				2022
	Amount		Rate		Amount		Rate		Amount		Rate
Statutory Federal Income Tax Expense (Benefit)	$	81.6	21.0	%	$	(72.8)	21.0	%	$	(77.9)	21.0	%
Tax-exempt Income and Dividends Received Deduction	(3.4)		(0.9)		(4.8)		1.4		(5.3)		1.3




Untaxed Earnings on Company-Owned Life Insurance	(7.5)		(1.9)		(6.1)		1.8		(8.0)		2.1
Tax credits	(1.2)		(0.3)		(3.1)		0.9		(6.5)		1.7
Stock-Based Compensation	(0.1)		—		0.3		(0.1)		1.3		(0.3)
Nondeductible Executive Compensation	3.5		0.9		1.8		(0.5)		1.5		(0.4)
Goodwill impairment	—		—		6.3		(1.8)		—		—
Expense on Transactions	—		—		—		—		11.5		(3.0)
Effect of foreign operations	(11.3)		(2.9)		(27.4)		7.9		—		—
Change in valuation allowance	11.3		2.9		27.4		(7.9)		—		—
Other, Net	3.1		0.8		3.6		(1.1)		(1.0)		0.3
Effective Income Tax Expense (Benefit)	$	76.0	19.6	%	$	(74.8)	21.6	%	$	(84.4)	22.7	%

Comprehensive Income Tax Benefit and Expenses

Comprehensive Income Tax Expense (Benefit) included in the Consolidated Financial Statements for the years ended December 31, 2024, 2023 and 2022 was:


DOLLARS IN MILLIONS	2024		2023		2022
Income Tax Expense (Benefit):
Operations	$	76.0	$	(74.8)	$	(84.4)

Unrealized (Depreciation) Appreciation on Securities	(42.2)		50.3		(325.5)

Tax Effects from Postretirement Benefit Plans	(0.3)		12.4		4.0
Tax Effects on changes in Discount Rate for Life Reserves	58.3		(21.2)		289.9
Tax Effects from Cash Flow Hedge	(0.8)		—		1.2

Comprehensive Income Tax Expense (Benefit)	$	91.0	$	(33.3)	$	(114.8)