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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): February 1, 2024
Kemper Corporation
(Exact name of registrant as specified in its charter)
Commission File Number: 001-18298
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| DE | | 95-4255452 |
(State or other jurisdiction
of incorporation) | | (IRS Employer
Identification No.) |
200 E. Randolph Street, Suite 3300, Chicago, IL 60601
(Address of principal executive offices, including zip code)
312-661-4600
(Registrant’s telephone number, including area code)
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the Registrant under any of the following provisions (see General Instruction A.2.below):
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| ☐ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
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| ☐ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
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| ☐ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
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| ☐ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities registered pursuant to Section 12(b) of the Act:
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| Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
| Common Stock, par value $0.10 per share | KMPR | NYSE |
| 5.875% Fixed-Rate Reset Junior Subordinated Debentures due 2062 | KMPB | NYSE |
Indicate by check mark whether the registrant is an emerging growth company as defined in as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
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| Emerging Growth Company | ☐ |
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition
period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of
the Exchange Act. ¨
Section 2. – Financial Information
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| Item 2.02. | Results of Operations and Financial Condition. |
On February 1, 2024, Kemper Corporation ("Kemper" or the "Registrant") issued a press release announcing its financial results for the fourth quarter of 2023 and the availability of Kemper’s fourth quarter investor supplement and earnings call presentation on its website, kemper.com. The press release, the investor supplement and the earnings call presentation are furnished as Exhibits 99.1, 99.2 and 99.3, respectively, to this report.
Section 9. – Financial Statements and Exhibits.
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| Item 9.01. | Financial Statements and Exhibits. |
(d) Exhibits
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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| | | | Kemper Corporation |
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| Date: | February 1, 2024 | | | /s/ BRADLEY T. CAMDEN |
| | | | Bradley T. Camden |
| | | | Senior Vice President and Interim Chief Financial Officer |
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| Kemper Corporation 200 East Randolph Street Suite 3300 Chicago, IL 60601 kemper.com
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| Press Release | |
Kemper Reports Fourth Quarter 2023 Operating Results*
CHICAGO, February 1, 2024 — Kemper Corporation (NYSE: KMPR) reported net income of $51.4 million, or $0.80 per diluted share, for the fourth quarter of 2023, compared to a net loss of $53.3 million, or $(0.84) per share, for the fourth quarter of 2022.
Adjusted Consolidated Net Operating Income1 was $50.5 million, or $0.78 per diluted share, for the fourth quarter of 2023, compared to Adjusted Consolidated Net Operating Loss1,2 of $23.5 million, or $(0.36) per share, for the fourth quarter of 2022.
Key themes of the quarter include:
•Specialty P&C underlying combined ratio improved 2.3% sequentially to 98.2%
•Life business continues to produce stable earnings
•Parent liquidity increased to $1.1 billion, up $325 million from prior quarter; insurance companies remain well capitalized
•Achieved multi-year target of $150 million in expense savings in first year of program
•Bermuda optimization generated approximately $330 million of dividends to parent
“I’m pleased we closed 2023 with a return to profitability and we are clearly on the path to return to target margins in 2024,” said Joseph P. Lacher, Jr., President, CEO and Chairman. “The benefits from our planned profit actions have generated improvement in our Specialty P&C underlying combined ratio for three consecutive quarters. The strategic initiatives we completed during the quarter exceeded expectations, significantly increasing liquidity and strengthening our low-cost operating platform. With these solid results, we are transitioning to the next phase of our journey and are focused on a thoughtful balance between continued improvement in underwriting profitability and new business generation to optimize long-term profitable growth.”
*NOTE: In third quarter 2023, the Company finalized the establishment of Kemper Reciprocal, an Illinois-domiciled reciprocal insurance exchange that began writing policies in September 2023. The results of Kemper Reciprocal are consolidated under US GAAP.
Unless specified otherwise, discussion of our fourth quarter 2023 results is focused on net income attributable to Kemper Corporation common shareholders, which does not include financial results from Kemper Reciprocal that are presented within the consolidated financial results in this release.
1 Non-GAAP financial measure. All Non-GAAP financial measures are denoted with footnote 1 throughout this release. See “Use of Non-GAAP Financial Measures” for additional information.
2 The Company has recast all prior period results to reflect a change in the Adjusted Consolidated Operating Net Income (Loss) calculation to exclude the results of the Preferred Insurance business that we expect to fully exit (referred to as "Non-Core Operations"). The results of this business were previously reported as a reportable segment. Prior period amounts have been recast to reflect the change in reportable segments and the new segment measure of profitability.
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| | | Three Months Ended | | Year Ended |
| (Dollars in Millions, Except Per Share Amounts) (Unaudited) | | Dec 31,
2023 | | | Dec 31, 20223 | | Dec 31,
2023 | | Dec 31, 20223 |
| Net Income (Loss) | | $ | 51.4 | | | | $ | (53.3) | | | $ | (272.1) | | | $ | (286.6) | |
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Adjusted Consolidated Net Operating Income (Loss) 1,2 | | $ | 50.5 | | | | $ | (23.5) | | | $ | (47.2) | | | $ | (116.4) | |
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| Impact of Catastrophe Losses and Related Loss Adjustment Expense (LAE) on Net Loss | | $ | (8.3) | | | | $ | (6.4) | | | $ | (76.4) | | | $ | (62.6) | |
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Diluted Net Income (Loss) Per Share From: | | | | | | | | | |
| Net Income (Loss) | | $ | 0.80 | | | | $ | (0.84) | | | $ | (4.25) | | | $ | (4.50) | |
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Adjusted Consolidated Net Operating Income (Loss)1,2 | | $ | 0.78 | | | | $ | (0.36) | | | $ | (0.74) | | | $ | (1.82) | |
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| Impact of Catastrophe Losses and Related LAE on Net Loss Per Share | | $ | (0.16) | | | | $ | (0.10) | | | $ | (1.51) | | | $ | (0.98) | |
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3 This press release recasts previously reported financial information for the provisions of Accounting Standards Update No. 2018-12, “Targeted Improvements to the Accounting for Long-Duration Contracts and related amendments” (“LDTI”) adopted as of January 1, 2023, with a transition date of January 1, 2021, under the modified retrospective method. |
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Revenues
Total revenues for the fourth quarter of 2023 decreased $187.4 million, or 13.6 percent, to $1,187.2 million, compared to the fourth quarter of 2022, mostly driven by $116.0 million of reduced Specialty P&C earned premiums due to continued lower new business writings, partially offset by higher average earned premium per exposure from rate increases. The decrease in total revenues was also driven by $58.6 million of lower Life earned premiums mostly due to the disposition of Kemper Health that was completed in December 2022, and the annual review and update of assumptions under LDTI for deferred profit liability.
Segment Results
Unless otherwise noted, (i) the segment results discussed below are presented on an after-tax basis, (ii) prior-year development includes both catastrophe and non-catastrophe losses and LAE, (iii) catastrophe losses and LAE exclude the impact of prior-year development, (iv) loss ratio includes loss and LAE, and (v) all comparisons are made to the prior year quarter unless otherwise stated.
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| | Three Months Ended | | Year Ended |
| (Dollars in Millions) (Unaudited) | | Dec 31,
2023 | | | Dec 31, 20223 | | Dec 31,
2023 | | Dec 31, 20223 |
| Segment Adjusted Net Operating Income (Loss): | | | | | | | | | |
| Specialty Property & Casualty Insurance | | $ | 45.3 | | | | $ | (35.1) | | | $ | (57.1) | | | $ | (147.4) | |
| Life Insurance | | 15.0 | | | | 23.0 | | | 51.8 | | | 68.8 | |
| Total Segment Adjusted Net Operating Income (Loss) | | 60.3 | | | | (12.1) | | | (5.3) | | | (78.6) | |
| Corporate and Other Adjusted Net Operating Loss | | (9.9) | | | | (11.4) | | | (42.1) | | | (37.8) | |
| Less: Net Loss Attributable to Noncontrolling Interest | | (0.1) | | | | — | | | (0.2) | | | — | |
Adjusted Consolidated Net Operating Income (Loss)1,2 | | 50.5 | | | | (23.5) | | | (47.2) | | | (116.4) | |
| Net (Loss) Income From: | | | | | | | | | |
| Change in Fair Value of Equity and Convertible Securities | | (1.8) | | | | — | | | 3.7 | | | (63.1) | |
| Net Realized Investment Gains (Losses) | | 15.6 | | | | 3.1 | | | (14.7) | | | 3.4 | |
| Impairment Losses | | (1.0) | | | | (2.9) | | | (0.9) | | | (20.4) | |
| Acquisition and Disposition Related Transaction, Integration, Restructuring and Other Costs | | (14.4) | | | | (29.1) | | | (95.0) | | | (61.3) | |
Debt Extinguishment, Pension Settlement and Other Charges | | — | | | | — | | | (55.5) | | | (2.9) | |
| Goodwill Impairment Charge | | — | | | | — | | | (45.5) | | | — | |
| Non-Core Operations | | 2.5 | | | | (0.9) | | | (17.0) | | | (25.9) | |
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Net Income (Loss) Attributable to Kemper Corporation | | $ | 51.4 | | | | $ | (53.3) | | | $ | (272.1) | | | $ | (286.6) | |
The Specialty Property and Casualty Insurance segment reported adjusted net operating income of $45.3 million for the fourth quarter of 2023, compared to an adjusted net operating loss of $35.1 million in the fourth quarter of 2022. Results increased due primarily to an improvement in the Underlying Combined Ratio1 and the absence of adverse prior year loss and LAE development. The segment’s Underlying Combined Ratio was 98.2 percent compared to 107.8 percent in the fourth quarter of 2022. The improvement was primarily driven by higher average earned premiums per exposure resulting from rate increases and lower underlying claim frequency.
The Life Insurance segment reported net operating income of $15.0 million for the fourth quarter of 2023, compared to a net operating income of $23.0 million in the fourth quarter of 2022. The decrease in adjusted net operating income was primarily due to lower Net Investment Income driven by lower returns from equity method limited liability investments and lower income from company-owned life insurance.
Capital
Total Shareholders’ Equity at year-end 2023 was $2,505.2 million, a decrease of $165.4 million, or 6 percent, since year-end 2022 primarily driven by the net loss for the year, partially offset by a decrease in net unrealized losses on our fixed income portfolio. Kemper and its direct non-insurance subsidiaries ended the year with cash and investments of $464.5 million, and $393.0 million of available borrowing capacity under the revolving credit agreement.
On October 31, 2023, Kemper announced that its Board of Directors declared a quarterly dividend of $0.31 per share, or $20.2 million. The dividend was paid on November 30, 2023, to its shareholders of record as of November 14, 2023.
Kemper ended the year with a book value per share of $39.08, a decrease of 6 percent from $41.79 at the end of 2022. Book Value Per Share Excluding Net Unrealized Losses on Fixed Maturities and Changes in the Discount Rate on Future Life Policyholder Benefits1 was $44.90, compared to $49.23 at the end of 2022.
Unaudited Condensed Consolidated Statements of Income (Loss) for the three months and year ended December 31, 2023 and 2022 are presented below.
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| | Three Months Ended | | Year Ended |
| (Dollars in Millions, Except Per Share Amounts) | | Dec 31,
2023 | | Dec 31, 20223 | | Dec 31,
2023 | | Dec 31, 20223 |
| Revenues: | | | | | | | | |
Earned Premiums (Changes in Deferred Profit Liability for the Three Months and Year Ended: 2023 - $32.6 and $84.2; 2022 - $3.4 and $60.2) | | $ | 1,063.8 | | | $ | 1,264.9 | | | $ | 4,529.4 | | | $ | 5,213.4 | |
| Net Investment Income | | 104.6 | | | 106.3 | | | 419.7 | | | 422.6 | |
Change in Value of Alternative Energy Partnership Investments4 | | 0.6 | | | 1.3 | | | 2.9 | | | (19.9) | |
| Other Income | | 1.9 | | | 1.9 | | | 7.2 | | | 9.2 | |
| (Loss) Income from Change in Fair Value of Equity and Convertible Securities | | (2.2) | | | — | | | 4.7 | | | (79.9) | |
| Net Realized Investment Gains (Losses) | | 19.7 | | | 3.9 | | | (18.6) | | | 4.3 | |
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| Impairment Losses | | (1.2) | | | (3.7) | | | (1.1) | | | (25.8) | |
| Total Revenues | | 1,187.2 | | | 1,374.6 | | | 4,944.2 | | | 5,523.9 | |
| Expenses: | | | | | | | | |
Policyholders’ Benefits and Incurred Losses and Loss Adjustment Expenses (Changes in Liability for Future Policyholder Benefits for the Three Months and Year Ended: 2023 - $24.9 and $33.5; 2022 - $(9.9) and $12.0) | | 808.1 | | | 1,073.0 | | | 3,820.0 | | | 4,432.6 | |
| Insurance Expenses | | 258.0 | | | 288.0 | | | 1,052.4 | | | 1,201.0 | |
| Loss from Early Extinguishment of Debt | | — | | | — | | | — | | | 3.7 | |
| Interest and Other Expenses | | 57.6 | | | 86.5 | | | 369.3 | | | 257.6 | |
| Goodwill Impairment | | — | | | — | | | 49.6 | | | — | |
| Total Expenses | | 1,123.7 | | | 1,447.5 | | | 5,291.3 | | | 5,894.9 | |
| Income (Loss) before Income Taxes | | 63.5 | | | (72.9) | | | (347.1) | | | (371.0) | |
| Income Tax (Expense) Benefit | | (12.2) | | | 19.6 | | | 74.8 | | | 84.4 | |
| Net Income (Loss) | | $ | 51.3 | | | $ | (53.3) | | | $ | (272.3) | | | $ | (286.6) | |
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| Less: Net Loss Attributable to Noncontrolling Interest | | (0.1) | | | — | | | (0.2) | | | — | |
Net Income (Loss) Attributable to Kemper Corporation | | $ | 51.4 | | | $ | (53.3) | | | $ | (272.1) | | | $ | (286.6) | |
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Net Income (Loss) Per Unrestricted Share: | | | | | | | | |
| Basic | | $ | 0.80 | | | $ | (0.84) | | | $ | (4.25) | | | $ | (4.50) | |
| Diluted | | $ | 0.80 | | | $ | (0.84) | | | $ | (4.25) | | | $ | (4.50) | |
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| Weighted-average Outstanding (Shares in Thousands): | | | | | | | | |
| Unrestricted Shares - Basic | | 64,088.3 | | | 63,888.1 | | | 64,025.6 | | | 63,825.5 | |
| Unrestricted Shares and Equivalent Shares - Diluted | | 64,566.0 | | | 63,888.1 | | | 64,025.6 | | | 63,825.5 | |
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| Dividends Paid to Shareholders Per Share | | $ | 0.31 | | | $ | 0.31 | | | $ | 1.24 | | | $ | 1.24 | |
4 Income related to Changes in Value of Alternative Energy Partnership Investments was $0.6 million for the three months ended December 31, 2023, compared to income of $1.3 million for the same period in 2022. Tax benefits related to the Alternative Energy Partnership Investments was $0.1 million for the three months ended December 31, 2023, compared to tax expense of $0.0 million for the same period in 2022. This resulted in net income of $0.7 million and net income of $1.3 million attributable to Alternative Energy Partnership Investments for the three months ended December 31, 2023 and 2022, respectively.
Income related to Changes in Value of Alternative Energy Partnership Investments was $2.9 million for the year ended December 31, 2023, compared to a loss of $19.9 million for the same period in 2022. Tax expense related to the Alternative Energy Partnership Investments was $0.5 million for the year ended December 31, 2023, compared to tax benefit of $8.0 million for the same period in 2022. This resulted in net income of $2.4 million and a net loss of $11.9 million attributable to Alternative Energy Partnership Investments for the year ended December 31, 2023 and 2022, respectively.
Unaudited business segment revenues for the three months and year ended December 31, 2023 and 2022 are presented below.
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| | Three Months Ended | | Year Ended |
| (Dollars in Millions) | | Dec 31,
2023 | | | Dec 31, 20223 | | Dec 31,
2023 | | Dec 31, 20223 |
| REVENUES: | | | | | | | | | |
| Specialty Property & Casualty Insurance: | | | | | | | | | |
| Earned Premiums: | | | | | | | | | |
| Personal Automobile | | $ | 699.3 | | | | $ | 830.4 | | | $ | 2,977.8 | | | $ | 3,496.7 | |
| Commercial Automobile | | 166.3 | | | | 151.2 | | | 654.7 | | | 549.7 | |
| Total Earned Premiums | | 865.6 | | | | 981.6 | | | 3,632.5 | | | 4,046.4 | |
| Net Investment Income | | 42.6 | | | | 37.9 | | | 168.3 | | | 140.7 | |
| Change in Value of Alternative Energy Partnership Investments | | 0.3 | | | | 0.7 | | | 1.6 | | | (9.9) | |
| Other Income | | 1.3 | | | | 1.0 | | | 4.5 | | | 6.0 | |
| Total Specialty Property & Casualty Insurance Revenues | | 909.8 | | | | 1,021.2 | | | 3,806.9 | | | 4,183.2 | |
| Life Insurance: | | | | | | | | | |
| Earned Premiums: | | | | | | | | | |
Life1 | | 67.3 | | | | 99.0 | | | 319.2 | | | 352.8 | |
| Accident & Health | | 5.6 | | | | 31.4 | | | 23.1 | | | 168.2 | |
| Property | | 11.1 | | | | 12.2 | | | 45.3 | | | 50.5 | |
| Total Earned Premiums | | 84.0 | | | | 142.6 | | | 387.6 | | | 571.5 | |
| Net Investment Income | | 47.1 | | | | 52.6 | | | 193.4 | | | 216.5 | |
| Change in Value of Alternative Energy Partnership Investments | | 0.1 | | | | 0.3 | | | 0.7 | | | (5.3) | |
| Other Income (Loss) | | 0.2 | | | | 0.2 | | | (0.2) | | | (0.6) | |
| Total Life Insurance Revenues | | 131.4 | | | | 195.7 | | | 581.5 | | | 782.1 | |
| Total Segment Revenues | | 1,041.2 | | | | 1,216.9 | | | 4,388.4 | | | 4,965.3 | |
| (Loss) Income from Change in Fair Value of Equity and Convertible Securities | | (2.2) | | | | — | | | 4.7 | | | (79.9) | |
| Net Realized Investment Gains (Losses) | | 19.7 | | | | 3.9 | | | (18.6) | | | 4.3 | |
| Impairment Losses | | (1.2) | | | | (3.7) | | | (1.1) | | | (25.8) | |
| Non-Core Operations | | 126.7 | | | | 154.5 | | | 558.4 | | | 640.5 | |
| Other | | 3.0 | | | | 3.0 | | | 12.4 | | | 19.5 | |
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| Total Revenues | | $ | 1,187.2 | | | | $ | 1,374.6 | | | $ | 4,944.2 | | | $ | 5,523.9 | |
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1 Earned premiums were impacted by changes in deferred profit liability related to the annual review and assumptions update under LDTI that decreased earned premiums by $15.0 million in fourth quarter and full year 2023 and increased earned premiums by $12.7 million in fourth quarter and full year 2022. |
KEMPER CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in Millions)
(Unaudited)
| | | | | | | | | | | |
| Dec 31,
2023 | | Dec 31, 20223 |
Assets: | | | |
Investments: | | | |
Fixed Maturities at Fair Value | $ | 6,881.9 | | | $ | 6,894.8 | |
Equity Securities at Fair Value | 225.8 | | | 243.2 | |
| Equity Method Limited Liability Investments | 221.7 | | | 217.0 | |
| Alternative Energy Partnership Investments | 17.3 | | | 16.3 | |
| Short-term Investments at Cost which Approximates Fair Value | 520.9 | | | 278.4 | |
Company-Owned Life Insurance | 513.5 | | | 586.5 | |
Loans to Policyholders | 281.2 | | | 283.4 | |
| Other Investments | 241.9 | | | 269.9 | |
Total Investments | 8,904.2 | | | 8,789.5 | |
Cash | 64.1 | | | 212.4 | |
Receivables from Policyholders | 959.5 | | | 1,286.6 | |
Other Receivables | 200.5 | | | 262.6 | |
Deferred Policy Acquisition Costs | 591.6 | | | 635.6 | |
Goodwill | 1,250.7 | | | 1,300.3 | |
Current Income Tax Assets | 64.5 | | | 167.6 | |
| Deferred Income Tax Assets | 210.4 | | | 129.0 | |
| | | |
Other Assets | 492.6 | | | 530.0 | |
| Assets of Consolidated Variable Interest Entity | | | |
| Fixed Maturities at Fair Value | 1.7 | | | — | |
| Short-term Investments at Cost which Approximates Fair Value | 2.0 | | | — | |
| | | |
| Receivables from Policyholders | 0.7 | | | — | |
| Deferred Policy Acquisition Costs | 0.1 | | | — | |
| Deferred Income Tax Assets | 0.1 | | | — | |
| | | |
Total Assets | $ | 12,742.7 | | | $ | 13,313.6 | |
Liabilities and Shareholders’ Equity: | | | |
Insurance Reserves: | | | |
| Life & Health | $ | 3,422.4 | | | $ | 3,276.2 | |
Property & Casualty | 2,680.5 | | | 2,756.9 | |
Total Insurance Reserves | 6,102.9 | | | 6,033.1 | |
Unearned Premiums | 1,300.8 | | | 1,704.4 | |
Policyholder Contract Liabilities | 655.7 | | | 701.3 | |
Deferred Income Tax Liabilities | 50.6 | | | — | |
| | | |
Accrued Expenses and Other Liabilities | 737.7 | | | 817.3 | |
| Long-term Debt, Current and Non-current, at Amortized Cost | 1,389.2 | | | 1,386.9 | |
| Liabilities of Consolidated Variable Interest Entity | | | |
| | | |
| Unearned Premiums | 0.5 | | | — | |
| Accrued Expenses and Other Liabilities | 0.3 | | | — | |
Total Liabilities | 10,237.7 | | | 10,643.0 | |
Shareholders’ Equity: | | | |
Common Stock | 6.4 | | | 6.4 | |
Paid-in Capital | 1,845.3 | | | 1,812.7 | |
Retained Earnings | 1,014.3 | | | 1,366.4 | |
| Accumulated Other Comprehensive Loss | (360.8) | | | (514.9) | |
| Total Kemper Corporation Shareholders’ Equity | 2,505.2 | | | 2,670.6 | |
| Noncontrolling Interest | (0.2) | | | — | |
| Total Shareholders’ Equity | 2,505.0 | | | 2,670.6 | |
| Total Liabilities and Shareholders’ Equity | $ | 12,742.7 | | | $ | 13,313.6 | |
Unaudited selected financial information for the Specialty Property & Casualty Insurance segment follows.
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| | Three Months Ended | | Year Ended |
| (Dollars in Millions) | | Dec 31,
2023 | | | Dec 31, 2022 | | Dec 31,
2023 | | Dec 31, 2022 |
| | | | | | | | | |
Results of Operations |
| Net Premiums Written | | $ | 719.7 | | | | $ | 922.3 | | | $ | 3,305.4 | | | $ | 3,934.4 | |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| Earned Premiums | | $ | 865.6 | | | | $ | 981.6 | | | $ | 3,632.5 | | | $ | 4,046.4 | |
| Net Investment Income | | 42.6 | | | | 37.9 | | | 168.3 | | | 140.7 | |
| Change in Value of Alternative Energy Partnership Investments | | 0.3 | | | | 0.7 | | | 1.6 | | | (9.9) | |
| Other Income | | 1.3 | | | | 1.0 | | | 4.5 | | | 6.0 | |
| Total Revenues | | 909.8 | | | | 1,021.2 | | | 3,806.9 | | | 4,183.2 | |
| Incurred Losses and LAE related to: | | | | | | | | | |
| Current Year: | | | | | | | | | |
| Non-catastrophe Losses and LAE | | 673.1 | | | | 859.3 | | | 2,974.5 | | | 3,569.2 | |
| Catastrophe Losses and LAE | | 2.5 | | | | (0.1) | | | 34.5 | | | 23.0 | |
| Prior Years: | | | | | | | | | |
| Non-catastrophe Losses and LAE | | (0.2) | | | | 10.2 | | | 135.2 | | | (14.6) | |
| Catastrophe Losses and LAE | | 0.1 | | | | (0.1) | | | (2.3) | | | 0.6 | |
| Total Incurred Losses and LAE | | 675.5 | | | | 869.3 | | | 3,141.9 | | | 3,578.2 | |
| Insurance Expenses | | 177.7 | | | | 198.4 | | | 741.3 | | | 801.9 | |
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| Segment Adjusted Operating Income (Loss) | | 56.6 | | | | (46.5) | | | (76.3) | | | (196.9) | |
| Income Tax (Expense) Benefit | | (11.3) | | | | 11.4 | | | 19.2 | | | 49.5 | |
| Total Segment Adjusted Net Operating Income (Loss) | | $ | 45.3 | | | | $ | (35.1) | | | $ | (57.1) | | | $ | (147.4) | |
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| Ratios Based On Earned Premiums |
| Current Year Non-catastrophe Losses and LAE Ratio | | 77.7 | % | | | 87.6 | % | | 82.0 | % | | 88.2 | % |
| Current Year Catastrophe Losses and LAE Ratio | | 0.3 | | | | — | | | 0.9 | | | 0.6 | |
| Prior Years Non-catastrophe Losses and LAE Ratio | | — | | | | 1.0 | | | 3.7 | | | (0.4) | |
| Prior Years Catastrophe Losses and LAE Ratio | | — | | | | — | | | (0.1) | | | — | |
| Total Incurred Loss and LAE Ratio | | 78.0 | | | | 88.6 | | | 86.5 | | | 88.4 | |
| Insurance Expense Ratio | | 20.5 | | | | 20.2 | | | 20.4 | | | 19.8 | |
| Combined Ratio | | 98.5 | % | | | 108.8 | % | | 106.9 | % | | 108.2 | % |
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Underlying Combined Ratio1 |
| Current Year Non-catastrophe Losses and LAE Ratio | | 77.7 | % | | | 87.6 | % | | 82.0 | % | | 88.2 | % |
| Insurance Expense Ratio | | 20.5 | | | | 20.2 | | | 20.4 | | | 19.8 | |
Underlying Combined Ratio1 | | 98.2 | % | | | 107.8 | % | | 102.4 | % | | 108.0 | % |
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| Non-GAAP Measure Reconciliation |
| Combined Ratio | | 98.5 | % | | | 108.8 | % | | 106.9 | % | | 108.2 | % |
| Less: | | | | | | | | | |
| Current Year Catastrophe Losses and LAE Ratio | | 0.3 | | | | — | | | 0.9 | | | 0.6 | |
| Prior Years Non-catastrophe Losses and LAE Ratio | | — | | | | 1.0 | | | 3.7 | | | (0.4) | |
| Prior Years Catastrophe Losses and LAE Ratio | | — | | | | — | | | (0.1) | | | — | |
Underlying Combined Ratio1 | | 98.2 | % | | | 107.8 | % | | 102.4 | % | | 108.0 | % |
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Unaudited selected financial information for the Life Insurance segment follows.
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| | Three Months Ended | | Year Ended |
| (Dollars in Millions) | | Dec 31,
2023 | | | Dec 31, 20223 | | Dec 31,
2023 | | Dec 31, 20223 |
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Results of Operations |
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| Earned Premiums | | $ | 84.0 | | | | $ | 142.6 | | | $ | 387.6 | | | $ | 571.5 | |
| Net Investment Income | | 47.1 | | | | 52.6 | | | 193.4 | | | 216.5 | |
| Change in Value of Alternative Energy Partnership Investments | | 0.1 | | | | 0.3 | | | 0.7 | | | (5.3) | |
| Other Income (Loss) | | 0.2 | | | | 0.2 | | | (0.2) | | | (0.6) | |
| Total Revenues | | 131.4 | | | | 195.7 | | | 581.5 | | | 782.1 | |
| Policyholders’ Benefits and Incurred Losses and LAE | | 40.5 | | | | 88.1 | | | 243.4 | | | 360.8 | |
| Insurance Expenses | | 71.0 | | | | 81.1 | | | 275.8 | | | 343.3 | |
| Segment Adjusted Operating Income | | 19.9 | | | | 26.5 | | | 62.3 | | | 78.0 | |
| Income Tax Expense | | (4.9) | | | | (3.5) | | | (10.5) | | | (9.2) | |
| Total Segment Adjusted Net Operating Income | | $ | 15.0 | | | | $ | 23.0 | | | $ | 51.8 | | | $ | 68.8 | |
Use of Non-GAAP Financial Measures
Adjusted Consolidated Net Operating Income (Loss)1 is an after-tax, non-GAAP financial measure and is computed by excluding from Net Income (Loss) Attributable to Kemper Corporation the after-tax impact of:
(i) (Loss) Income from Change in Fair Value of Equity and Convertible Securities;
(ii) Net Realized Investment Gains (Losses);
(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 Charges;
(vii) Non-Core Operations; and
(viii) Significant non-recurring or infrequent items that may not be indicative of ongoing operations
Significant non-recurring items are excluded when (a) the nature of the charge or gain is such that it is reasonably unlikely to recur within two years, and (b) there has been no similar charge or gain within the prior two years. The most directly comparable GAAP financial measure is Net Income (Loss) Attributable to Kemper Corporation. There were no applicable significant non-recurring items that Kemper excluded from the calculation of Adjusted Consolidated Net Operating Income (Loss)1 for the three and twelve months ended December 31, 2023 or 2022.
Kemper believes that Adjusted Consolidated Net Operating Income (Loss)1 provides investors with a valuable measure of its ongoing performance because it reveals underlying operational performance trends that otherwise might be less apparent if the items were not excluded. (Loss) Income from Change in Fair Value of Equity and Convertible Securities, Net Realized Investment Gains (Losses) and Impairment Losses related to investments included in Kemper’s results may vary significantly between periods and are generally driven by business decisions and external economic developments such as capital market conditions that impact the values of Kemper’s investments, the timing of which is unrelated to the insurance underwriting process. Acquisition and Disposition Related Transaction, Integration, Restructuring and Other Costs may vary significantly between periods and are generally driven by the timing of acquisitions and business decisions which are unrelated to the insurance underwriting process. Debt Extinguishment, Pension Settlement and Other Charges relate to (i) loss from early extinguishment of debt, which is driven by Kemper’s financing and refinancing decisions and capital needs, as well as external economic developments such as debt market conditions, the timing of which is unrelated to the insurance underwriting process; (ii) settlement of pension plan obligations which are business decisions made by Kemper, the timing of which is unrelated to the underwriting process; and (iii) other charges that are non-standard, not part of the ordinary course of business, and unrelated to the insurance underwriting process.
Goodwill impairment charges are excluded because they are infrequent and non-recurring charges. Non-Core Operations includes the results of our Preferred Insurance business which we expect to fully exit. These results are excluded because they are irrelevant to our ongoing operations and do not qualify for Discontinued Operations under Generally Accepted Accounting Principles ("GAAP"). Significant non-recurring items are excluded because, by their nature, they are not indicative of Kemper’s business or economic trends.
The preceding non-GAAP financial measures should not be considered a substitute for the comparable GAAP financial measures, as they do not fully recognize the profitability of Kemper’s businesses.
A reconciliation of Net Income (Loss) Attributable to Kemper Corporation to Adjusted Consolidated Net Operating Income (Loss)1 for the three and twelve months ended December 31, 2023 and 2022 is presented below.
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| | Three Months Ended | | Year Ended |
| (Dollars in Millions) (Unaudited) | | Dec 31,
2023 | | | Dec 31, 20223 | | Dec 31,
2023 | | Dec 31, 20223 |
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Net Income (Loss) Attributable to Kemper Corporation | | $ | 51.4 | | | | $ | (53.3) | | | $ | (272.1) | | | $ | (286.6) | |
Less Net (Loss) Income From: | | | | | | | | | |
| Change in Fair Value of Equity and Convertible Securities | | (1.8) | | | | — | | | 3.7 | | | (63.1) | |
| Net Realized Investment Gains (Losses) | | 15.6 | | | | 3.1 | | | (14.7) | | | 3.4 | |
| Impairment Losses | | (1.0) | | | | (2.9) | | | (0.9) | | | (20.4) | |
| Acquisition and Disposition Related Transaction, Integration, Restructuring and Other Costs | | (14.4) | | | | (29.1) | | | (95.0) | | | (61.3) | |
| Debt Extinguishment, Pension Settlement and Other Charges | | — | | | | — | | | (55.5) | | | (2.9) | |
| Goodwill Impairment Charge | | — | | | | — | | | (45.5) | | | — | |
| Non-Core Operations | | 2.5 | | | | (0.9) | | | (17.0) | | | (25.9) | |
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Adjusted Consolidated Net Operating Income (Loss)1,2 | | $ | 50.5 | | | | $ | (23.5) | | | $ | (47.2) | | | $ | (116.4) | |
Diluted Adjusted Net Operating Income (Loss) Per Unrestricted Share1 is a non-GAAP financial measure computed by dividing Adjusted Net Operating Income (Loss)1 attributed to unrestricted shares by the weighted-average unrestricted shares and equivalent shares outstanding. The most directly comparable GAAP financial measure is Diluted Net Loss Per Unrestricted Share.
A reconciliation of Diluted Net Income (Loss) Per Unrestricted Share to Diluted Adjusted Net Operating Income (Loss) Per Unrestricted Share1 for the three and twelve months ended December 31, 2023 and 2022 is presented below.
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| | | Three Months Ended | | Year Ended |
| (Unaudited) | | Dec 31,
2023 | | Dec 31, 20223 | | Dec 31,
2023 | | Dec 31, 20223 |
Diluted Net Income (Loss) Per Unrestricted Share | | $ | 0.80 | | | $ | (0.84) | | | $ | (4.25) | | | $ | (4.50) | |
Less Net (Loss) Income Per Unrestricted Share From: | | | | | | | | |
| Change in Fair Value of Equity and Convertible Securities | | (0.03) | | | — | | | 0.06 | | | (0.99) | |
| Net Realized Investment Gains (Losses) | | 0.24 | | | 0.05 | | | (0.23) | | | 0.05 | |
| Impairment Losses | | (0.01) | | | (0.05) | | | (0.01) | | | (0.32) | |
| Acquisition and Disposition Related Transaction, Integration, Restructuring and Other Costs | | (0.22) | | | (0.46) | | | (1.49) | | | (0.96) | |
| Debt Extinguishment, Pension Settlement and Other Charges | | — | | | — | | | (0.87) | | | (0.05) | |
| Goodwill Impairment Charge | | — | | | — | | | (0.71) | | | — | |
| Non-Core Operations | | 0.04 | | | (0.02) | | | (0.26) | | | (0.41) | |
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Diluted Adjusted Net Operating Income (Loss) Per Unrestricted Share1,2 | | $ | 0.78 | | | $ | (0.36) | | | $ | (0.74) | | | $ | (1.82) | |
Return on Tangible Shareholders' Equity1 is a calculation that uses a non-GAAP financial Measure. It is calculated by dividing the period’s net income attributable to Kemper Corporation by the average shareholders’ equity excluding net unrealized gains and losses on fixed maturities, the change in discount rate on future life policyholder benefits and goodwill. Return on Shareholder’s Equity is the most directly comparable GAAP measure. We use this non-GAAP measure to identify and analyze the change in performance attributable to management efforts between periods. The Company believes this non-GAAP financial measure is useful to investors because it eliminates the effect of items that can fluctuate significantly from period to period and are generally driven by economic developments, primarily capital market conditions, the magnitude and timing of which are not influenced by management. The Company believes it enhances understanding and comparability of performance by highlighting underlying business activity and profitability drivers.
A reconciliation of Return on Shareholders’ Equity to Return on Shareholders' Equity Excluding Net Unrealized Gains and Losses on Fixed Maturities, the Change in Discount Rate on Future Life Policyholder Benefits and Goodwill is presented below:
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Three Months Ended | | Year Ended |
| (Dollars in Millions) (Unaudited) | | Dec 31,
2023 | | Dec 31, 20223 | | Dec 31,
2023 | | Dec 31, 20223 |
| | | | | | | | |
| Numerator: | | | | | | | | |
| Annualized Net Income (Loss) Attributable to Kemper Corporation | | $ | 205.6 | | | $ | (213.2) | | | $ | (272.1) | | | $ | (286.6) | |
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| Denominator: | | | | | | | | |
Average Shareholders' Equity2 | | $ | 2,433.3 | | | $ | 2,682.6 | | | $ | 2,539.2 | | | $ | 2,861.6 | |
| | | | | | | | |
Less: Average Net Unrealized Gains and Losses on Fixed Maturities | | 716.9 | | | 749.7 | | | 673.1 | | | 296.6 | |
Less: Average Change in Discount Rate on Future Life Policyholder Benefits | | (286.7) | | | (256.9) | | | (232.6) | | | 145.9 | |
Less: Average Goodwill | | (1,250.7) | | | (1,299.6) | | | (1,270.5) | | | (1,307.0) | |
Average Tangible Shareholders' Equity2 | | $ | 1,612.8 | | | $ | 1,875.8 | | | $ | 1,709.2 | | | $ | 1,997.1 | |
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Return on Shareholders' Equity: | | | | | | | | |
| Return on Shareholders' Equity | | 8.4% | | (7.9)% | | (10.7)% | | (10.0)% |
Return on Tangible Shareholders' Equity1 | | 12.7% | | (11.4)% | | (15.9)% | | (14.4)% |
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2 Average shareholders' equity and average tangible shareholders’ equity for the three months ended is the simple average of the beginning and ending balances for the period. Average shareholders’ equity and average tangible shareholders’ equity on a year-to-date basis is the (a) the sum of the balance at the beginning of the year and the ending balance for each quarter within that year divided by (b) the number of quarters in the period presented plus one. |
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Underlying Combined Ratio1 is a non-GAAP financial measure. It is computed by adding the Current Year Non-catastrophe Losses and LAE Ratio with the Insurance Expense Ratio. The most directly comparable GAAP financial measure is the Combined Ratio, which is computed by adding Total Incurred Losses and LAE Ratio, including the impact of catastrophe losses and loss and LAE reserve development from prior years, with the Insurance Expense Ratio.
Kemper believes Underlying Losses and LAE and the Underlying Combined Ratio are useful to investors and uses these financial measures to reveal the trends in Kemper’s Property & Casualty Insurance segment that may be obscured by catastrophe losses and prior-year reserve development. These catastrophe losses may cause Kemper’s loss trends to vary significantly between periods as a result of their incidence of occurrence and magnitude and can have a significant impact on incurred losses and LAE and the Combined Ratio. Prior-year reserve developments are caused by unexpected loss development on historical reserves. Because reserve development relates to the re-estimation of losses from earlier periods, it has no bearing on the performance of Kemper’s insurance products in the current period. Kemper believes it is useful for investors to evaluate these components separately and in the aggregate when reviewing Kemper’s underwriting performance.
Book Value Per Share Excluding Net Unrealized Gains and Losses on Fixed Maturities and the Change in Discount Rate on Future Life Policyholder Benefits1 is a calculation that uses a non-GAAP financial measure. It is calculated by dividing shareholders’ equity after excluding the after-tax impact of net unrealized gains and losses on fixed income securities and the change in discount rate on future life policyholder benefits by total Common Shares Issued and Outstanding. Book value per share is the most directly comparable GAAP financial measure. The Company uses the trends in book value per share excluding the after-tax impact of net unrealized gains and losses on fixed income securities and the change in discount rate on future life policyholder benefits in conjunction with book value per share to identify and analyze the change in net worth attributable to management efforts between periods. The Company believes the non-GAAP financial measure is useful to investors because it eliminates the effect of items that can fluctuate significantly from period to period and are generally driven by economic developments, primarily capital market conditions, the magnitude and timing of which are not influenced by management. The Company believes it enhances understanding and comparability of performance by highlighting underlying business activity and profitability drivers.
A reconciliation of the numerator used in the computation of Book Value Per Share Excluding Net Unrealized Gains and Losses on Fixed Maturities and the Change in Discount Rate on Future Life Policyholder Benefits1 and Book Value Per Share at December 31, 2023 and December 31, 2022 is presented below.
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| (Dollars in Millions) (Unaudited) | | Dec 31,
2023 | | Dec 31, 20223 |
| Shareholders’ Equity | | $ | 2,505.2 | | | $ | 2,670.6 | |
Less: Net Unrealized Losses on Fixed Maturities | | (533.8) | | | (716.8) | |
| Less: Change in Discount Rate on Future Life Policyholder Benefits | | 160.6 | | | 241.1 | |
Kemper Corporation Shareholders’ Equity Excluding Net Unrealized Losses on Fixed Maturities and Change in Discount Rate on Future Life Policyholder Benefits1 | | $ | 2,878.4 | | | $ | 3,146.3 | |
Conference Call
Kemper will host its conference call to discuss fourth quarter 2023 results on Thursday, February 1, at 5:00 p.m. Eastern (4:00 p.m. Central). The conference call will be accessible via the internet and by telephone at 888.259.6580, conference ID 47100078. To listen via webcast, register online at the investor section of kemper.com at least 15 minutes prior to the webcast to download and install any necessary software.
A replay of the call will be available online at the investor section of kemper.com.
More detailed financial information can be found in Kemper’s Investor Financial Supplement and Earnings Call Presentation for the fourth quarter of 2023, which is available at the investor section of kemper.com.
About Kemper
The Kemper family of companies is one of the nation’s leading specialized insurers. With approximately $13 billion in assets, Kemper is improving the world of insurance by providing affordable and easy-to-use personalized solutions to individuals, families and businesses through its Auto and Life brands. Kemper serves over 4.9 million policies, is represented by approximately 23,700 agents and brokers, and has approximately 8,100 associates dedicated to meeting the ever-changing needs of its customers.
Learn more about Kemper at kemper.com.
Caution Regarding Forward-Looking Statements
This press release may contain or incorporate by reference information that includes or is based on forward-looking statements within the meaning of the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995. We caution investors that these forward-looking statements are not guarantees of future performance, and actual results may differ materially. Such statements involve known and unknown risks, uncertainties, and other factors, including but not limited to:
•changes in the frequency and severity of insurance claims;
•claim development and the process of estimating claim reserves;
•the impacts of inflation;
•changes in the interest rate environment;
•supply chain disruption;
•product demand and pricing;
•effects of governmental and regulatory actions;
•litigation outcomes and trends;
•investment risks;
•cybersecurity risks;
•impact of catastrophes; and
•other risks and uncertainties detailed in Kemper’s Annual Report on Form 10-K and subsequent filings with the Securities and Exchange Commission (“SEC”).
Kemper assumes no obligation to publicly correct or update any forward-looking statements as a result of events or developments subsequent to the date of this press release.
###
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Contacts | |
Investors: Karen Guerra |
312.668.9720 or investors@kemper.com |
| Media: Barbara Ciesemier | 312.661.4521 or bciesemier@kemper.com |
Investor Supplement
Fourth Quarter 2023
Caution Regarding Forward-Looking Statements
This Investor Supplement may contain or incorporate by reference information that includes or is based on forward-looking statements within the meaning of the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995. We caution investors that these forward-looking statements are not guarantees of future performance, and actual results may differ materially. Such statements involve known and unknown risks, uncertainties, and other factors, including but not limited to:
•changes in the frequency and severity of insurance claims;
•claim development and the process of estimating claim reserves;
•the impacts of inflation;
•changes in the interest rate environment;
•supply chain disruption;
•product demand and pricing;
•effects of governmental and regulatory actions;
•litigation outcomes and trends;
•investment risks;
•cybersecurity risks;
•impact of catastrophes; and
•other risks and uncertainties detailed in Kemper’s Annual Report on Form 10-K and subsequent filings with the Securities and Exchange Commission (“SEC”).
Non-GAAP Financial Measures
This document contains non-GAAP financial measures to analyze the Company’s operating performance for the periods presented. Because the Company’s calculation of these measures may differ from similar measures used by other companies, investors should be careful when comparing the Company’s non-GAAP financial measures to those of other companies. For detailed disclosures on non-GAAP financial measures please refer to the “Definitions of Non-GAAP Financial Measures” on pages 31-34.
Kemper Corporation
Investor Supplement
Fourth Quarter 2023
Table of Contents
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| Consolidated Financial Highlights | 2-3 |
Consolidated Statements of Income (Loss) | 4 |
| Consolidated Balance Sheets | 5-6 |
| Consolidated Statements of Cash Flows | 7-8 |
| Capital Metrics | 9-10 |
Debt Outstanding, FHLB Advances and Ratings | 11 |
| Adjusted Segment Summary Results: | |
| Revenues | 12 |
| Adjusted Operating Income (Loss) | 13 |
| Adjusted Net Operating Income (Loss) | 13 |
| Catastrophe Frequency and Severity | 14-15 |
| Specialty Property & Casualty Insurance Segment - Results of Operations and Selected Financial Information | 16-17 |
| Personal Automobile Insurance | 18 |
| Commercial Automobile Insurance | 19 |
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| Life Insurance Segment - Results of Operations and Selected Financial Information | 20-21 |
| Life Insurance | 22 |
| Accident and Health Insurance | 22 |
| Property Insurance | 23 |
| Expenses | 24 |
| Details of Investment Performance | 25 |
| Details of Invested Assets | 26-27 |
| Investment Concentration | 28 |
| Municipal Bond Securities | 29 |
| Investments in Limited Liability Companies and Limited Partnerships | 30 |
| Definitions of Non-GAAP Financial Measures | 31-34 |
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Kemper Corporation Consolidated Financial Highlights (Dollars in Millions, Except Per Share Amounts) (Unaudited) |
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| | | Three Months Ended | | Year Ended |
| | Dec 31,
2023 | | Sep 30, 2023 | | Jun 30, 2023 | | Mar 31, 2023 | | Dec 31, 2022 | | Sep 30, 2022 | | Jun 30, 2022 | | Mar 31, 2022 | | Dec 31,
2023 | | Dec 31,
2022 |
| For Period Ended | | | | | | | | | | | | | | | | | | | | |
Earned Premiums | | $ | 1,063.8 | | | $ | 1,117.8 | | | $ | 1,166.9 | | | $ | 1,180.9 | | | $ | 1,264.9 | | | $ | 1,290.9 | | | $ | 1,337.6 | | | $ | 1,320.0 | | | $ | 4,529.4 | | | $ | 5,213.4 | |
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Net Investment Income | | 104.6 | | | 107.0 | | | 106.3 | | | 101.8 | | | 106.3 | | | 97.8 | | | 118.5 | | | 100.0 | | | 419.7 | | | 422.6 | |
| Change in Value of Alternative Energy Partnership Investments | | 0.6 | | | 0.8 | | | 0.8 | | | 0.7 | | | 1.3 | | | 0.4 | | | (4.9) | | | (16.7) | | | 2.9 | | | (19.9) | |
| Other Income | | 1.9 | | | 2.4 | | | 1.7 | | | 1.2 | | | 1.9 | | | 4.0 | | | 0.9 | | | 2.4 | | | 7.2 | | | 9.2 | |
| Income (Loss) from Change in Fair Value of Equity and Convertible Securities | | (2.2) | | | 2.8 | | | 2.4 | | | 1.7 | | | — | | | (11.2) | | | (40.5) | | | (28.2) | | | 4.7 | | | (79.9) | |
| Net Realized Investment (Losses) Gains | | 18.5 | | | (31.4) | | | (15.3) | | | 8.5 | | | 0.2 | | | (20.4) | | | 6.1 | | | (7.4) | | | (19.7) | | | (21.5) | |
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| Investment and Other Income | | 123.4 | | | 81.6 | | | 95.9 | | | 113.9 | | | 109.7 | | | 70.6 | | | 80.1 | | | 50.1 | | | 414.8 | | | 310.5 | |
Total Revenues | | $ | 1,187.2 | | | $ | 1,199.4 | | | $ | 1,262.8 | | | $ | 1,294.8 | | | $ | 1,374.6 | | | $ | 1,361.5 | | | $ | 1,417.7 | | | $ | 1,370.1 | | | $ | 4,944.2 | | | $ | 5,523.9 | |
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Net Income (Loss) | | $ | 51.3 | | | $ | (146.4) | | | $ | (97.1) | | | $ | (80.1) | | | $ | (53.3) | | | $ | (74.8) | | | $ | (72.2) | | | $ | (86.3) | | | $ | (272.3) | | | $ | (286.6) | |
| Less: Net Loss attributable to Noncontrolling Interest | | (0.1) | | | (0.1) | | | — | | | — | | | — | | | — | | | — | | | — | | | (0.2) | | | — | |
Net Income (Loss) attributable to Kemper Corporation | | $ | 51.4 | | | $ | (146.3) | | | $ | (97.1) | | | $ | (80.1) | | | $ | (53.3) | | | $ | (74.8) | | | $ | (72.2) | | | $ | (86.3) | | | $ | (272.1) | | | $ | (286.6) | |
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Adjusted Consolidated Net Operating Income (Loss)1 | | $ | 50.5 | | | $ | (27.8) | | | $ | (14.2) | | | $ | (55.7) | | | $ | (23.5) | | | $ | (27.0) | | | $ | (20.4) | | | $ | (45.5) | | | $ | (47.2) | | | $ | (116.4) | |
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Per Unrestricted Common Share Amounts: | | | | | | | | | | | | | | | | | | | | |
Basic: | | | | | | | | | | | | | | | | | | | | |
Net Income (Loss) attributable to Kemper Corporation per Unrestricted Share: | | $ | 0.80 | | | $ | (2.28) | | | $ | (1.52) | | | $ | (1.25) | | | $ | (0.84) | | | $ | (1.17) | | | $ | (1.13) | | | $ | (1.36) | | | $ | (4.25) | | | $ | (4.50) | |
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Adjusted Consolidated Net Operating Income (Loss)1 | | $ | 0.79 | | | $ | (0.44) | | | $ | (0.22) | | | $ | (0.87) | | | $ | (0.36) | | | $ | (0.43) | | | $ | (0.32) | | | $ | (0.71) | | | $ | (0.74) | | | $ | (1.82) | |
Diluted: | | | | | | | | | | | | | | | | | | | | |
Net Income (Loss) attributable to Kemper Corporation per Unrestricted Share: | | $ | 0.80 | | | $ | (2.28) | | | $ | (1.52) | | | $ | (1.25) | | | $ | (0.84) | | | $ | (1.17) | | | $ | (1.13) | | | $ | (1.36) | | | $ | (4.25) | | | $ | (4.50) | |
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Adjusted Consolidated Net Operating Income (Loss)1 | | $ | 0.78 | | | $ | (0.44) | | | $ | (0.22) | | | $ | (0.87) | | | $ | (0.36) | | | $ | (0.43) | | | $ | (0.32) | | | $ | (0.71) | | | $ | (0.74) | | | $ | (1.82) | |
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Dividends Paid to Shareholders Per Share | | $ | 0.31 | | | $ | 0.31 | | | $ | 0.31 | | | $ | 0.31 | | | $ | 0.31 | | | $ | 0.31 | | | $ | 0.31 | | | $ | 0.31 | | | $ | 1.24 | | | $ | 1.24 | |
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| Return on Shareholders' Equity | | 8.4 | % | | (24.0) | % | | (15.1) | % | | (12.1) | % | | (7.9) | % | | (10.8) | % | | (9.9) | % | | (11.3) | % | | (10.7) | % | | (10.0) | % |
Return on Tangible Shareholders' Equity1 | | 12.7 | % | | (35.4) | % | | (22.4) | % | | (17.7) | % | | (11.4) | % | | (15.3) | % | | (14.2) | % | | (16.3) | % | | (15.9) | % | | (14.4) | % |
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1In the fourth quarter of 2023, we simplified our presentation to show return on shareholders’ equity and adjusted return on shareholders equity instead of the multiple return on equity calculations that were historically provided. Adjusted return on equity is a non-GAAP Financial Measure and is defined on page 33. In addition, we changed our methodology for the calculations of quarterly and year-to-date return on equity results on interim periods to include (1) a numerator that reflects the annualization of quarterly results rather than using results on a rolling twelve month basis and (2) a denominator that reflects average shareholders' equity for the period rather than using a 5-point average. Average shareholders' equity for the three months ended is the simple average of the beginning and ending balances for the period. Average shareholders equity on a year-to-date basis is the (a) the sum of total shareholders’ equity at the beginning of the year and the ending balance for each quarter within that year divided by (b) the number of quarters in the period presented plus one. There were no changes to the calculations of return on shareholders' equity for full year results. We believe this change in methodology provides clearer information regarding the Company’s results. The prior period amounts presented above have been updated to reflect this change in methodology. |
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Kemper Corporation Consolidated Financial Highlights (Dollars in Millions, Except Per Share Amounts) (Unaudited) |
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| | As of |
| | Dec 31,
2023 | | Sep 30, 2023 | | Jun 30, 2023 | | Mar 31, 2023 | | Dec 31, 2022 | | Sep 30, 2022 | | Jun 30, 2022 | | Mar 31, 2022 |
| At Period End | | | | | | | | | | | | | | | | |
Total Assets | | $ | 12,742.7 | | | $ | 12,549.3 | | | $ | 13,096.3 | | | $ | 13,403.7 | | | $ | 13,313.6 | | | $ | 13,399.9 | | | $ | 13,964.2 | | | $ | 14,667.7 | |
Insurance Reserves | | $ | 6,102.9 | | | $ | 5,822.6 | | | $ | 6,043.9 | | | $ | 6,120.7 | | | $ | 6,033.1 | | | $ | 5,940.1 | | | $ | 6,343.5 | | | $ | 6,864.3 | |
Debt | | $ | 1,389.2 | | | $ | 1,388.6 | | | $ | 1,388.1 | | | $ | 1,387.5 | | | $ | 1,386.9 | | | $ | 1,386.4 | | | $ | 1,385.8 | | | $ | 1,385.2 | |
| Kemper Corporation Shareholders’ Equity | | $ | 2,505.2 | | | $ | 2,361.3 | | | $ | 2,512.2 | | | $ | 2,646.9 | | | $ | 2,670.6 | | | $ | 2,694.5 | | | $ | 2,844.1 | | | $ | 2,969.2 | |
Kemper Corporation Shareholders’ Equity Excluding Goodwill1,2 | | $ | 1,254.5 | | | $ | 1,110.6 | | | $ | 1,261.5 | | | $ | 1,346.6 | | | $ | 1,370.3 | | | $ | 1,395.7 | | | $ | 1,532.1 | | | $ | 1,657.2 | |
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Common Shares Issued and Outstanding (In Millions) | | 64.112 | | | 64.081 | | | 64.054 | | | 63.982 | | | 63.913 | | | 63.884 | | | 63.850 | | | 63.800 | |
Book Value Per Share2 | | $ | 39.08 | | | $ | 36.85 | | | $ | 39.22 | | | $ | 41.37 | | | $ | 41.79 | | | $ | 42.18 | | | $ | 44.54 | | | $ | 46.54 | |
Book Value Per Share Excluding Goodwill1,2 | | $ | 19.57 | | | $ | 17.33 | | | $ | 19.69 | | | $ | 21.05 | | | $ | 21.44 | | | $ | 21.85 | | | $ | 24.00 | | | $ | 25.97 | |
Book Value Per Share Excluding Net Unrealized Losses on Fixed Maturities and Changes in the Discount Rate on Future Life Policyholder Benefits1,2 | | $ | 44.90 | | | $ | 44.45 | | | $ | 46.18 | | | $ | 47.93 | | | $ | 49.23 | | | $ | 50.16 | | | $ | 51.76 | | | $ | 53.11 | |
Book Value Per Share Excluding Net Unrealized Losses on Fixed Maturities, Changes in the Discount Rate on Future Life Policyholder Benefits and Goodwill1,2 | | $ | 25.39 | | | $ | 24.94 | | | $ | 26.66 | | | $ | 27.61 | | | $ | 28.88 | | | $ | 29.83 | | | $ | 31.21 | | | $ | 32.55 | |
Debt to Total Capitalization2 | | 35.7 | % | | 37.0 | % | | 35.6 | % | | 34.4 | % | | 34.2 | % | | 34.0 | % | | 32.8 | % | | 31.8 | % |
1 Non-GAAP Financial Measure. See pages 31-34 for definition. | | | | |
2 See Capital Metrics on pages 9-10 for detail calculations. | | | | |
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Kemper Corporation
Consolidated Statements of Income (Loss)
(Dollars in Millions, Except Per Share Amounts)
(Unaudited)
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| | | Three Months Ended | | Year Ended |
| | | Dec 31,
2023 | | Sep 30, 2023 | | Jun 30, 2023 | | Mar 31, 2023 | | Dec 31, 2022 | | Sep 30, 2022 | | Jun 30, 2022 | | Mar 31, 2022 | | Dec 31,
2023 | | Dec 31,
2022 |
| Revenues: | | | | | | | | | | | | | | | | | | | | |
| Earned Premiums | | $ | 1,063.8 | | | $ | 1,117.8 | | | $ | 1,166.9 | | | $ | 1,180.9 | | | $ | 1,264.9 | | | $ | 1,290.9 | | | $ | 1,337.6 | | | $ | 1,320.0 | | | $ | 4,529.4 | | | $ | 5,213.4 | |
| Net Investment Income | | 104.6 | | | 107.0 | | | 106.3 | | | 101.8 | | | 106.3 | | | 97.8 | | | 118.5 | | | 100.0 | | | 419.7 | | | 422.6 | |
| Change in Value of Alternative Energy Partnership Investments | | 0.6 | | | 0.8 | | | 0.8 | | | 0.7 | | | 1.3 | | | 0.4 | | | (4.9) | | | (16.7) | | | 2.9 | | | (19.9) | |
| Other Income | | 1.9 | | | 2.4 | | | 1.7 | | | 1.2 | | | 1.9 | | | 4.0 | | | 0.9 | | | 2.4 | | | 7.2 | | | 9.2 | |
| (Loss) Income from Change in Fair Value of Equity and Convertible Securities | | (2.2) | | | 2.8 | | | 2.4 | | | 1.7 | | | — | | | (11.2) | | | (40.5) | | | (28.2) | | | 4.7 | | | (79.9) | |
| Net Realized Investment Gains (Losses) | | 19.7 | | | (30.3) | | | (14.4) | | | 6.4 | | | 3.9 | | | (12.1) | | | 11.0 | | | 1.5 | | | (18.6) | | | 4.3 | |
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| Impairment Losses | | (1.2) | | | (1.1) | | | (0.9) | | | 2.1 | | | (3.7) | | | (8.3) | | | (4.9) | | | (8.9) | | | (1.1) | | | (25.8) | |
| Total Revenues | | 1,187.2 | | | 1,199.4 | | | 1,262.8 | | | 1,294.8 | | | 1,374.6 | | | 1,361.5 | | | 1,417.7 | | | 1,370.1 | | | 4,944.2 | | | 5,523.9 | |
| Expenses: | | | | | | | | | | | | | | | | | | | | |
| Policyholders’ Benefits and Incurred Losses and Loss Adjustment Expenses | | 808.1 | | | 975.2 | | | 984.7 | | | 1,052.0 | | | 1,073.0 | | | 1,085.3 | | | 1,151.1 | | | 1,123.2 | | | 3,820.0 | | | 4,432.6 | |
| Insurance Expenses | | 258.0 | | | 259.0 | | | 266.1 | | | 269.3 | | | 288.0 | | | 300.5 | | | 307.7 | | | 304.8 | | | 1,052.4 | | | 1,201.0 | |
| Loss from Early Extinguishment of Debt | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | 3.7 | | | — | | | 3.7 | |
| Interest and Other Expenses | | 57.6 | | | 156.0 | | | 78.3 | | | 77.4 | | | 86.5 | | | 63.5 | | | 53.5 | | | 54.1 | | | 369.3 | | | 257.6 | |
| Goodwill Impairment | | — | | | — | | | 49.6 | | | — | | | — | | | — | | | — | | | — | | | 49.6 | | | — | |
| Total Expenses | | 1,123.7 | | | 1,390.2 | | | 1,378.7 | | | 1,398.7 | | | 1,447.5 | | | 1,449.3 | | | 1,512.3 | | | 1,485.8 | | | 5,291.3 | | | 5,894.9 | |
| Income (Loss) before Income Taxes | | 63.5 | | | (190.8) | | | (115.9) | | | (103.9) | | | (72.9) | | | (87.8) | | | (94.6) | | | (115.7) | | | (347.1) | | | (371.0) | |
| Income Tax (Expense) Benefit | | (12.2) | | | 44.4 | | | 18.8 | | | 23.8 | | | 19.6 | | | 13.0 | | | 22.4 | | | 29.4 | | | 74.8 | | | 84.4 | |
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| Net Income (Loss) | | 51.3 | | | (146.4) | | | (97.1) | | | (80.1) | | | (53.3) | | | (74.8) | | | (72.2) | | | (86.3) | | | (272.3) | | | (286.6) | |
Less: Net Income (Loss) attributable to Noncontrolling Interest | | (0.1) | | | (0.1) | | | — | | | — | | | — | | | — | | | — | | | — | | | (0.2) | | | — | |
Net Income (Loss) attributable to Kemper Corporation | | $ | 51.4 | | | $ | (146.3) | | | $ | (97.1) | | | $ | (80.1) | | | $ | (53.3) | | | $ | (74.8) | | | $ | (72.2) | | | $ | (86.3) | | | $ | (272.1) | | | $ | (286.6) | |
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Net Income (Loss) attributable to Kemper Corporation per Unrestricted Share: | | | | | | | | | | | | | | | | | | | | |
| Basic | | $ | 0.80 | | | $ | (2.28) | | | $ | (1.52) | | | $ | (1.25) | | | $ | (0.84) | | | $ | (1.17) | | | $ | (1.13) | | | $ | (1.36) | | | $ | (4.25) | | | $ | (4.50) | |
| Diluted | | $ | 0.80 | | | $ | (2.28) | | | $ | (1.52) | | | $ | (1.25) | | | $ | (0.84) | | | $ | (1.17) | | | $ | (1.13) | | | $ | (1.36) | | | $ | (4.25) | | | $ | (4.50) | |
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| Dividends Paid to Shareholders Per Share | | $ | 0.31 | | | $ | 0.31 | | | $ | 0.31 | | | $ | 0.31 | | | $ | 0.31 | | | $ | 0.31 | | | $ | 0.31 | | | $ | 0.31 | | | $ | 1.24 | | | $ | 1.24 | |
| Weighted Average Unrestricted Common Shares Outstanding (in Millions) | | 64.088 | | | 64.057 | | | 64.009 | | | 63.947 | | | 63.888 | | | 63.853 | | | 63.816 | | | 63.744 | | | 64.026 | | | 63.826 | |
| Weighted-Average Unrestricted Shares and Equivalent Shares Outstanding Assuming Dilution (in Millions) | | 64.566 | | | 64.057 | | | 64.009 | | | 63.947 | | | 63.888 | | | 63.853 | | | 63.816 | | | 63.744 | | | 64.026 | | | 63.826 | |
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Kemper Corporation Consolidated Balance Sheets (Dollars in Millions) (Unaudited) |
| | Dec 31,
2023 | | Sep 30, 2023 | | Jun 30, 2023 | | Mar 31, 2023 | | Dec 31, 2022 | | Sep 30, 2022 | | Jun 30, 2022 | | Mar 31, 2022 | | Dec 31, 2021 |
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| Assets: | | | | | | | | | | | | | | | | | | |
| Investments: | | | | | | | | | | | | | | | | | | |
| Fixed Maturities at Fair Value | | $ | 6,881.9 | | | $ | 6,474.5 | | | $ | 6,943.8 | | | $ | 7,189.4 | | | $ | 6,894.8 | | | $ | 6,577.1 | | | $ | 7,218.8 | | | $ | 7,783.9 | | | $ | 7,986.9 | |
| Equity Securities at Fair Value | | 225.8 | | | 233.4 | | | 247.0 | | | 243.6 | | | 243.2 | | | 322.7 | | | 395.0 | | | 571.5 | | | 830.6 | |
| Equity Method Limited Liability Investments | | 221.7 | | | 224.1 | | | 225.1 | | | 218.7 | | | 217.0 | | | 226.0 | | | 228.9 | | | 230.0 | | | 241.9 | |
| Alternative Energy Partnerships | | 17.3 | | | 17.2 | | | 16.8 | | | 17.0 | | | 16.3 | | | 16.9 | | | 17.0 | | | 22.4 | | | 39.6 | |
| Short-term Investments at Cost which Approximates Fair Value | | 520.9 | | | 418.5 | | | 406.3 | | | 278.4 | | | 278.4 | | | 357.2 | | | 230.2 | | | 243.8 | | | 284.1 | |
Company-Owned Life Insurance | | 513.5 | | | 506.9 | | | 500.5 | | | 595.3 | | | 586.5 | | | 578.6 | | | 566.2 | | | 556.4 | | | 448.1 | |
Loans to Policyholders | | 281.2 | | | 281.8 | | | 281.6 | | | 283.1 | | | 283.4 | | | 283.2 | | | 282.3 | | | 284.7 | | | 286.2 | |
| Other Investments | | 241.9 | | | 273.1 | | | 275.6 | | | 271.8 | | | 269.9 | | | 274.2 | | | 276.9 | | | 275.4 | | | 270.0 | |
| Total Investments | | 8,904.2 | | | 8,429.5 | | | 8,896.7 | | | 9,097.3 | | | 8,789.5 | | | 8,635.9 | | | 9,215.3 | | | 9,968.1 | | | 10,387.4 | |
| Cash | | 64.1 | | | 110.0 | | | 73.6 | | | 60.6 | | | 212.4 | | | 249.2 | | | 348.6 | | | 297.3 | | | 148.2 | |
| Receivables from Policyholders | | 959.5 | | | 1,102.6 | | | 1,246.3 | | | 1,344.0 | | | 1,286.6 | | | 1,345.8 | | | 1,375.1 | | | 1,404.5 | | | 1,418.7 | |
| Other Receivables | | 200.5 | | | 223.4 | | | 262.0 | | | 249.4 | | | 262.6 | | | 228.7 | | | 206.5 | | | 203.4 | | | 207.3 | |
| Deferred Policy Acquisition Costs | | 591.6 | | | 622.2 | | | 646.2 | | | 651.5 | | | 635.6 | | | 645.1 | | | 690.1 | | | 689.6 | | | 688.0 | |
| Goodwill | | 1,250.7 | | | 1,250.7 | | | 1,250.7 | | | 1,300.3 | | | 1,300.3 | | | 1,298.8 | | | 1,312.0 | | | 1,312.0 | | | 1,312.0 | |
| Current Income Tax Assets | | 64.5 | | | 59.5 | | | 9.0 | | | 15.0 | | | 167.6 | | | 165.1 | | | 200.8 | | | 183.0 | | | 173.1 | |
| Deferred Income Tax Assets | | 210.4 | | | 258.5 | | | 208.0 | | | 166.0 | | | 129.0 | | | 113.7 | | | 58.7 | | | 43.4 | | | 6.4 | |
| Assets Held-for-Sale | | — | | | — | | | — | | | — | | | — | | | 172.8 | | | — | | | — | | | — | |
| Other Assets | | 492.6 | | | 488.7 | | | 503.8 | | | 519.6 | | | 530.0 | | | 544.8 | | | 557.1 | | | 566.4 | | | 592.2 | |
| Assets of Consolidated Variable Interest Entity: | | | | | | | | | | | | | | | | | | |
| Fixed Maturities at Fair Value | | 1.7 | | | 1.6 | | | — | | | — | | | — | | | — | | | — | | | — | | | — | |
| Short-term Investments at Cost which Approximates Fair Value | | 2.0 | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | |
| Cash | | — | | | 2.4 | | | — | | | — | | | — | | | — | | | — | | | — | | | — | |
| Receivables from Policyholders | | 0.7 | | | 0.1 | | | — | | | — | | | — | | | — | | | — | | | — | | | — | |
| Deferred Policy Acquisition Costs | | 0.1 | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | |
| Deferred Income Tax Assets | | 0.1 | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | |
| Other Assets | | — | | | 0.1 | | | — | | | — | | | — | | | — | | | — | | | — | | | — | |
| Total Assets | | $ | 12,742.7 | | | $ | 12,549.3 | | | $ | 13,096.3 | | | $ | 13,403.7 | | | $ | 13,313.6 | | | $ | 13,399.9 | | | $ | 13,964.2 | | | $ | 14,667.7 | | | $ | 14,933.3 | |
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Kemper Corporation Consolidated Balance Sheets (Dollars in Millions) (Unaudited) |
| | Dec 31,
2023 | | Sep 30, 2023 | | Jun 30, 2023 | | Mar 31, 2023 | | Dec 31, 2022 | | Sep 30, 2022 | | Jun 30, 2022 | | Mar 31, 2022 | | Dec 31, 2021 |
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| Liabilities and Shareholders’ Equity: | | | | | | | | | | | | | | | | | | |
| Insurance Reserves: | | | | | | | | | | | | | | | | | | |
| Life and Health | | $ | 3,422.4 | | | $ | 3,098.1 | | | $ | 3,363.8 | | | $ | 3,399.6 | | | $ | 3,276.2 | | | $ | 3,219.8 | | | $ | 3,585.1 | | | $ | 4,104.2 | | | $ | 4,662.7 | |
| Property and Casualty | | 2,680.5 | | | 2,724.5 | | | 2,680.1 | | | 2,721.1 | | | 2,756.9 | | | 2,720.3 | | | 2,758.4 | | | 2,760.1 | | | 2,772.7 | |
| Total Insurance Reserves | | 6,102.9 | | | 5,822.6 | | | 6,043.9 | | | 6,120.7 | | | 6,033.1 | | | 5,940.1 | | | 6,343.5 | | | 6,864.3 | | | 7,435.4 | |
| Unearned Premiums | | 1,300.8 | | | 1,485.1 | | | 1,665.2 | | | 1,778.0 | | | 1,704.4 | | | 1,794.8 | | | 1,854.4 | | | 1,890.5 | | | 1,898.7 | |
| Policyholder Contract Liabilities | | 655.7 | | | 656.3 | | | 700.2 | | | 700.6 | | | 701.3 | | | 704.0 | | | 704.5 | | | 655.0 | | | 504.0 | |
| Deferred Income Tax Liabilities | | 50.6 | | | 57.8 | | | — | | | — | | | — | | | — | | | — | | | — | | | — | |
| Liabilities Held-for-Sale | | — | | | — | | | — | | | — | | | — | | | 84.8 | | | — | | | — | | | — | |
| Accrued Expenses and Other Liabilities | | 737.7 | | | 777.6 | | | 786.7 | | | 770.0 | | | 817.3 | | | 795.3 | | | 831.9 | | | 903.5 | | | 843.6 | |
| Long-term Debt, Current and Non-current, at Amortized Cost | | 1,389.2 | | | 1,388.6 | | | 1,388.1 | | | 1,387.5 | | | 1,386.9 | | | 1,386.4 | | | 1,385.8 | | | 1,385.2 | | | 1,121.9 | |
| Liabilities of Consolidated Variable Interest Entity: | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | |
| Unearned Premiums | | 0.5 | | | 0.1 | | | — | | | — | | | — | | | — | | | — | | | — | | | — | |
| Accrued Expenses and Other Liabilities | | 0.3 | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | |
| Total Liabilities | | 10,237.7 | | | 10,188.1 | | | 10,584.1 | | | 10,756.8 | | | 10,643.0 | | | 10,705.4 | | | 11,120.1 | | | 11,698.5 | | | 11,803.6 | |
| Kemper Corporation Shareholders’ Equity: | | | | | | | | | | | | | | | | | | |
| Common Stock | | 6.4 | | | 6.4 | | | 6.4 | | | 6.4 | | | 6.4 | | | 6.4 | | | 6.4 | | | 6.4 | | | 6.4 | |
| Paid-in Capital | | 1,845.3 | | | 1,845.9 | | | 1,837.6 | | | 1,828.9 | | | 1,812.7 | | | 1,822.2 | | | 1,812.5 | | | 1,803.1 | | | 1,790.7 | |
| Retained Earnings | | 1,014.3 | | | 982.4 | | | 1,149.0 | | | 1,266.3 | | | 1,366.4 | | | 1,439.7 | | | 1,534.6 | | | 1,627.5 | | | 1,734.2 | |
| Accumulated Other Comprehensive Loss | | (360.8) | | | (473.4) | | | (480.8) | | | (454.7) | | | (514.9) | | | (573.8) | | | (509.4) | | | (467.8) | | | (401.6) | |
| Total Kemper Corporation Shareholders’ Equity | | 2,505.2 | | | 2,361.3 | | | 2,512.2 | | | 2,646.9 | | | 2,670.6 | | | 2,694.5 | | | 2,844.1 | | | 2,969.2 | | | 3,129.7 | |
| Noncontrolling Interest | | (0.2) | | | (0.1) | | | — | | | — | | | — | | | — | | | — | | | — | | | — | |
| Total Shareholders’ Equity | | $ | 2,505.0 | | | $ | 2,361.2 | | | $ | 2,512.2 | | | $ | 2,646.9 | | | $ | 2,670.6 | | | $ | 2,694.5 | | | $ | 2,844.1 | | | $ | 2,969.2 | | | $ | 3,129.7 | |
| Total Liabilities and Shareholders’ Equity | | $ | 12,742.7 | | | $ | 12,549.3 | | | $ | 13,096.3 | | | $ | 13,403.7 | | | $ | 13,313.6 | | | $ | 13,399.9 | | | $ | 13,964.2 | | | $ | 14,667.7 | | | $ | 14,933.3 | |
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Kemper Corporation Consolidated Statements of Cash Flows (Dollars in Millions) (Unaudited) |
| | Year Ended |
| | Dec 31,
2023 | | | Dec 31,
2022 |
| Cash Flows from Operating Activities: | | | | |
Net Loss | $ | (272.3) | | | | $ | (286.6) | |
| Adjustments to Reconcile Net Loss to Net Cash (Used in) Provided by Operating Activities | | | | |
| Net Realized Investment Losses (Gains) | 18.6 | | | | (4.3) | |
| Impairment Losses | 1.1 | | | | 25.8 | |
| Depreciation and Amortization of Property, Equipment and Software | 44.4 | | | | 50.5 | |
| Amortization of Intangible Assets Acquired | 14.2 | | | | 20.4 | |
| Settlement Costs Related to Defined Benefit Pension Plan | 70.2 | | | | — | |
| Loss from Early Extinguishment of Debt | — | | | | 3.7 | |
| Change in Accumulated Undistributed Earnings of Equity Method Limited Liability Investments | (1.1) | | | | (9.5) | |
| (Income) Loss from Change in Value of Alternative Energy Partnership Investments | (2.9) | | | | 19.9 | |
| (Increase) Decrease in Value of Equity and Convertible Securities | (4.7) | | | | 79.9 | |
| Goodwill Impairment | 49.6 | | | | — | |
| Changes in: | | | | |
| Receivables from Policyholders | 326.4 | | | | 129.4 | |
| Reinsurance Recoverables | 12.1 | | | | (1.9) | |
| Deferred Policy Acquisition Costs | 43.9 | | | | 14.2 | |
| Insurance Reserves | (30.8) | | | | 26.5 | |
| Unearned Premiums | (403.1) | | | | (183.5) | |
| Income Taxes | 33.2 | | | | (83.6) | |
| Other Assets and Liabilities | (33.0) | | | | (11.2) | |
| Net Cash (Used in) Provided by Operating Activities | (134.2) | | | | (210.3) | |
| Cash Flows from Investing Activities: | | | | |
| Proceeds from the Sales, Calls and Maturities of Fixed Maturities | 673.0 | | | | 1,295.5 | |
| Proceeds from the Sales or Paydowns of Investments: | | | | |
| Equity Securities | 149.0 | | | | 536.0 | |
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| Mortgage Loans | 95.2 | | | | 91.3 | |
| Other Investments | 18.3 | | | | 52.1 | |
| Purchases of Investments: | | | | |
| Fixed Maturities | (447.4) | | | | (1,815.8) | |
| Equity Securities | (44.4) | | | | (58.9) | |
| Real Estate Investments | (1.0) | | | | (3.1) | |
| Company-Owned Life Insurance | — | | | | (110.0) | |
| Mortgage Loans | (104.1) | | | | (81.1) | |
| Other Investments | (19.8) | | | | (13.0) | |
| Net (Purchases) Sales of Short-term Investments | (238.4) | | | | 6.1 | |
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| Sale of Infinity Security, Net of Cash Disposed | — | | | | 14.8 | |
| Acquisition of Software and Long-lived Assets | (53.8) | | | | (30.8) | |
| Settlement Proceeds from Company-Owned Life Insurance | 102.2 | | | | — | |
| Other | (20.9) | | | | 8.5 | |
| Net Cash Provided by (Used in) Investing Activities | 107.9 | | | | (108.4) | |
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Kemper Corporation Consolidated Statements of Cash Flows (Dollars in Millions) (Unaudited) |
| | Year Ended |
| | Dec 31,
2023 | | | Dec 31,
2022 |
Net Cash Provided by (Used in) Investing Activities (Carryforward from page 7) | $ | 107.9 | | | | $ | (108.4) | |
| Cash Flows from Financing Activities: | | | | |
| Repayment of Long-term Debt | — | | | | (280.0) | |
Proceeds from Issuance of 3.80% Senior Notes due February 23, 2032 | — | | | | 396.3 | |
Issuance Fees on 3.80% Senior Notes due February 23, 2032 | — | | | | (1.2) | |
Proceeds from Issuance of 5.875% Fixed-Rate Reset Junior Subordinated Debentures Due 2062 | — | | | | 145.6 | |
Issuance Fees on 5.875% Fixed-Rate Reset Junior Subordinated Debentures Due 2062 | — | | | | (0.9) | |
| Proceeds from Policyholder Contract Obligations | 123.3 | | | | 335.5 | |
| Repayment of Policyholder Contract Obligations | (169.0) | | | | (138.2) | |
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| Proceeds from Shares Issued under Employee Stock Purchase Plan | 4.3 | | | | 4.9 | |
| | | | |
| Dividends and Dividend Equivalents Paid | (80.1) | | | | (79.7) | |
| Other | (0.5) | | | | 0.6 | |
| Net Cash (Used in) Provided by Financing Activities | (122.0) | | | | 382.9 | |
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| Net (decrease) increase in cash | (148.3) | | | | 64.2 | |
| Cash, Beginning of Year | 212.4 | | | | 148.2 | |
| Cash, End of Year | $ | 64.1 | | | | $ | 212.4 | |
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Kemper Corporation Capital Metrics (Dollars and Shares in Millions, Except Per Share Amounts) (Unaudited) |
| | | Dec 31,
2023 | | Sep 30, 2023 | | Jun 30, 2023 | | Mar 31, 2023 | | Dec 31, 2022 | | Sep 30, 2022 | | Jun 30, 2022 | | Mar 31, 2022 | | Dec 31, 2021 |
| Book Value Per Share | | | | | | | | | | | | | | | | | | |
| Numerator | | | | | | | | | | | | | | | | | | |
| Kemper Corporation Shareholders’ Equity | | $ | 2,505.2 | | | $ | 2,361.3 | | | $ | 2,512.2 | | | $ | 2,646.9 | | | $ | 2,670.6 | | | $ | 2,694.5 | | | $ | 2,844.1 | | | $ | 2,969.2 | | | $ | 3,129.7 | |
| Less: Goodwill | | (1,250.7) | | | (1,250.7) | | | (1,250.7) | | | (1,300.3) | | | (1,300.3) | | | (1,298.8) | | | (1,312.0) | | | (1,312.0) | | | (1,312.0) | |
Kemper Corporation Shareholders’ Equity Excluding Goodwill1 | | $ | 1,254.5 | | | $ | 1,110.6 | | | $ | 1,261.5 | | | $ | 1,346.6 | | | $ | 1,370.3 | | | $ | 1,395.7 | | | $ | 1,532.1 | | | $ | 1,657.2 | | | $ | 1,817.7 | |
| Kemper Corporation Shareholders’ Equity | | $ | 2,505.2 | | | $ | 2,361.3 | | | $ | 2,512.2 | | | $ | 2,646.9 | | | $ | 2,670.6 | | | $ | 2,694.5 | | | $ | 2,844.1 | | | $ | 2,969.2 | | | $ | 3,129.7 | |
Less: Net Unrealized Losses on Fixed Maturities | | 533.8 | | | 900.1 | | | 640.5 | | | 574.2 | | | 716.8 | | | 782.7 | | | 472.2 | | | 13.7 | | | (502.6) | |
| Less: Changes in the Discount Rate on Future Life Policyholder Benefits | | $ | (160.6) | | | (412.8) | | | (194.4) | | | (154.2) | | | (241.1) | | | (272.8) | | | (11.4) | | | 405.5 | | | 849.7 | |
Kemper Corporation Shareholders’ Equity Excluding Net Unrealized Losses on Fixed Maturities and Changes in the Discount Rate on Future Life Policyholder Benefits1 | | $ | 2,878.4 | | | $ | 2,848.6 | | | $ | 2,958.3 | | | $ | 3,066.9 | | | $ | 3,146.3 | | | $ | 3,204.4 | | | $ | 3,304.9 | | | $ | 3,388.4 | | | $ | 3,476.8 | |
| Less: Goodwill | | (1,250.7) | | | (1,250.7) | | | (1,250.7) | | | (1,300.3) | | | (1,300.3) | | | (1,298.8) | | | (1,312.0) | | | (1,312.0) | | | (1,312.0) | |
Kemper Corporation Shareholders’ Equity Excluding Net Unrealized Losses on Fixed Maturities, Changes in the Discount Rate on Future Life Policyholder Benefits and Goodwill1 | | $ | 1,627.7 | | | $ | 1,597.9 | | | $ | 1,707.6 | | | $ | 1,766.6 | | | $ | 1,846.0 | | | $ | 1,905.6 | | | $ | 1,992.9 | | | $ | 2,076.4 | | | $ | 2,164.8 | |
| Denominator | | | | | | | | | | | | | | | | | | |
| Common Shares Issued and Outstanding | | 64.112 | | | 64.081 | | | 64.054 | | | 63.982 | | | 63.913 | | | 63.884 | | | 63.850 | | | 63.800 | | | 63.685 | |
| Book Value Per Share | | $ | 39.08 | | | $ | 36.85 | | | $ | 39.22 | | | $ | 41.37 | | | $ | 41.79 | | | $ | 42.18 | | | $ | 44.54 | | | $ | 46.54 | | | $ | 49.14 | |
Book Value Per Share Excluding Goodwill1 | | $ | 19.57 | | | $ | 17.33 | | | $ | 19.69 | | | $ | 21.05 | | | $ | 21.44 | | | $ | 21.85 | | | $ | 24.00 | | | $ | 25.97 | | | $ | 28.54 | |
Book Value Per Share Excluding Net Unrealized Losses on Fixed Maturities and Changes in the Discount Rate on Future Life Policyholder Benefits1 | | $ | 44.90 | | | $ | 44.45 | | | $ | 46.18 | | | $ | 47.93 | | | $ | 49.23 | | | $ | 50.16 | | | $ | 51.76 | | | $ | 53.11 | | | $ | 54.59 | |
Book Value Per Share Excluding Net Unrealized Losses on Fixed Maturities, Changes in the Discount Rate on Future Life Policyholder Benefits and Goodwill1 | | $ | 25.39 | | | $ | 24.94 | | | $ | 26.66 | | | $ | 27.61 | | | $ | 28.88 | | | $ | 29.83 | | | $ | 31.21 | | | $ | 32.55 | | | $ | 33.99 | |
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Kemper Corporation Capital Metrics (Dollars and Shares in Millions, Except Per Share Amounts) (Unaudited) |
| | Dec 31,
2023 | | Sep 30, 2023 | | Jun 30, 2023 | | Mar 31, 2023 | | Dec 31, 2022 | | Sep 30, 2022 | | Jun 30, 2022 | | Mar 31, 2022 | | Dec 31, 2021 |
| Debt and Total Capitalization | | | | | | | | | | | | | | | | | | |
| Debt | | $ | 1,389.2 | | | $ | 1,388.6 | | | $ | 1,388.1 | | | $ | 1,387.5 | | | $ | 1,386.9 | | | $ | 1,386.4 | | | $ | 1,385.8 | | | $ | 1,385.2 | | | $ | 1,121.9 | |
| Kemper Corporation Shareholders’ Equity | | 2,505.2 | | | 2,361.3 | | | 2,512.2 | | | 2,646.9 | | | 2,670.6 | | | 2,694.5 | | | 2,844.1 | | | 2,969.2 | | | 3,129.7 | |
| Total Capitalization | | $ | 3,894.4 | | | $ | 3,749.9 | | | $ | 3,900.3 | | | $ | 4,034.4 | | | $ | 4,057.5 | | | $ | 4,080.9 | | | $ | 4,229.9 | | | $ | 4,354.4 | | | $ | 4,251.6 | |
| Ratio of Debt to Kemper Corporation Shareholders’ Equity | | 55.5 | % | | 58.8 | % | | 55.3 | % | | 52.4 | % | | 51.9 | % | | 51.5 | % | | 48.7 | % | | 46.7 | % | | 35.8 | % |
| Ratio of Debt to Total Capitalization | | 35.7 | % | | 37.0 | % | | 35.6 | % | | 34.4 | % | | 34.2 | % | | 34.0 | % | | 32.8 | % | | 31.8 | % | | 26.4 | % |
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| Debt | | $ | 1,389.2 | | | $ | 1,388.6 | | | $ | 1,388.1 | | | $ | 1,387.5 | | | $ | 1,386.9 | | | $ | 1,386.4 | | | $ | 1,385.8 | | | $ | 1,385.2 | | | $ | 1,121.9 | |
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| Kemper Corporation Shareholders’ Equity | | $ | 2,505.2 | | | $ | 2,361.3 | | | $ | 2,512.2 | | | $ | 2,646.9 | | | $ | 2,670.6 | | | $ | 2,694.5 | | | $ | 2,844.1 | | | $ | 2,969.2 | | | $ | 3,129.7 | |
Less: Accumulated Other Comprehensive Loss | | (360.8) | | | (473.4) | | | (480.8) | | | (454.7) | | | (514.9) | | | (573.8) | | | (509.4) | | | (467.8) | | | (401.6) | |
Kemper Corporation Shareholders’ Equity Excluding Accumulated Other Comprehensive Loss | | $ | 2,866.0 | | | $ | 2,834.7 | | | $ | 2,993.0 | | | $ | 3,101.6 | | | $ | 3,185.5 | | | $ | 3,268.3 | | | $ | 3,353.5 | | | $ | 3,437.0 | | | $ | 3,531.3 | |
Total Capitalization Excluding Accumulated Other Comprehensive Loss | | $ | 4,255.2 | | | $ | 4,223.3 | | | $ | 4,381.1 | | | $ | 4,489.1 | | | $ | 4,572.4 | | | $ | 4,654.7 | | | $ | 4,739.3 | | | $ | 4,822.2 | | | $ | 4,653.2 | |
Ratio of Debt to Kemper Corporation Shareholders’ Equity Excluding Accumulated Other Comprehensive Loss | | 48.5 | % | | 49.0 | % | | 46.4 | % | | 44.7 | % | | 43.5 | % | | 42.4 | % | | 41.3 | % | | 40.3 | % | | 31.8 | % |
Ratio of Debt to Total Capitalization Excluding Accumulated Other Comprehensive Loss | | 32.6 | % | | 32.9 | % | | 31.7 | % | | 30.9 | % | | 30.3 | % | | 29.8 | % | | 29.2 | % | | 28.7 | % | | 24.1 | % |
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Parent Company Liquidity3 | | | | | | | | | | | | | | | | | | |
Kemper Holding Company Cash and Investments1 | | $ | 464.5 | | | $ | 153.9 | | | $ | 220.3 | | | $ | 240.6 | | | $ | 417.6 | | | $ | 449.8 | | | $ | 275.9 | | | $ | 318.3 | | | $ | 233.9 | |
| Borrowings Available Under Credit Agreement | | 393.0 | | | 376.0 | | | 460.0 | | | 520.0 | | | 600.0 | | | 600.0 | | | 600.0 | | | 600.0 | | | 400.0 | |
| Parent Company Liquidity | | $ | 857.5 | | | $ | 529.9 | | | $ | 680.3 | | | $ | 760.6 | | | $ | 1,017.6 | | | $ | 1,049.8 | | | $ | 875.9 | | | $ | 918.3 | | | $ | 633.9 | |
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| Capital Returned to Shareholders | | | | | | | | | | | | | | | | | | |
Cash Dividends Paid2 | | $ | 20.2 | | | $ | 20.2 | | | $ | 20.2 | | | $ | 19.4 | | | $ | 20.1 | | | $ | 20.1 | | | $ | 20.6 | | | $ | 19.6 | | | $ | 19.9 | |
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1 Includes Kemper's direct non-insurance subsidiaries | | |
2 Three Months Ended | | | | | | | | | | | | | | | | | | |
3 Excludes borrowings available from subsidiaries | | | | | | | | | | | | | | | | | | |
Kemper Corporation
Debt Outstanding, FHLB Advances and Ratings
(Dollars in Millions)
(Unaudited)
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| | Dec 31,
2023 | | Sep 30, 2023 | | Jun 30, 2023 | | Mar 31, 2023 | | Dec 31, 2022 | | Sep 30, 2022 | | Jun 30, 2022 | | Mar 31, 2022 |
| Kemper Corporation: | | | | | | | | | | | | | | | | |
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| Senior Notes at Amortized Cost: | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| 4.350% Senior Notes due February 15, 2025 | | 449.6 | | | $ | 449.6 | | | $ | 449.5 | | | $ | 449.4 | | | $ | 449.3 | | | $ | 449.3 | | | $ | 449.2 | | | $ | 449.1 | |
| 2.400% Senior Notes due September 30, 2030 | | 397.0 | | | 396.9 | | | 396.8 | | | 396.7 | | | 396.6 | | | 396.5 | | | 396.4 | | | 396.3 | |
| 3.800% Senior Notes due 2032 | | 396.0 | | | 395.8 | | | 395.7 | | | 395.6 | | | 395.5 | | | 395.3 | | | 395.2 | | | 395.1 | |
| 5.875% Fixed-Rate Reset Junior Subordinated Debentures Due 2062 at Amortized Cost | | 146.6 | | | 146.3 | | | 146.1 | | | 145.8 | | | 145.5 | | | 145.3 | | | 145.0 | | | 144.7 | |
| Long-term Debt Outstanding | | $ | 1,389.2 | | | $ | 1,388.6 | | | $ | 1,388.1 | | | $ | 1,387.5 | | | $ | 1,386.9 | | | $ | 1,386.4 | | | $ | 1,385.8 | | | $ | 1,385.2 | |
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| Federal Home Loan Bank Advances to Insurance Subsidiaries: | | | | | | | | | | | | | | | | |
| Reported as Policyholder Contract Liabilities: | | | | | | | | | | | | | | | | |
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| Federal Home Loan Bank of Chicago | | $ | 557.4 | | | $ | 557.4 | | | $ | 601.0 | | | $ | 601.0 | | | $ | 601.0 | | | $ | 602.6 | | | $ | 602.8 | | | $ | 553.1 | |
| Reported as Debt Outstanding: | | | | | | | | | | | | | | | | |
| Federal Home Loan Bank of Dallas | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | |
| Federal Home Loan Bank of Chicago | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | |
| Federal Home Loan Bank of San Francisco | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | |
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| | | A.M. Best | | Moody’s | | S&P | | Fitch | | | | | | | | |
| As of Date of Financial Supplement | | | | | | | | | | | | | | | | |
| Kemper Debt Ratings: | | | | | | | | | | | | | | | | |
| Senior Unsecured Debt | | bbb- | | Baa3 | | BBB- | | BBB- | | | | | | | | |
| Junior Unsecured Debt | | bb | | Ba1 | | BB | | BB | | | | | | | | |
| Insurance Company Financial Strength Ratings: | | | | | | | | | | | | | | | | |
| Trinity Universal Insurance Company | | A- | | A3 | | A- | | A- | | | | | | | | |
| United Insurance Company of America | | A- | | A3 | | A- | | A- | | | | | | | | |
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Kemper Corporation
Segment Revenues
(Dollars in Millions)
(Unaudited)
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| | | Three Months Ended | | Year Ended |
| | | Dec 31,
2023 | | Sep 30, 2023 | | | Jun 30, 2023 | | Mar 31, 2023 | | Dec 31, 2022 | | Sep 30, 2022 | | Jun 30, 2022 | | Mar 31, 2022 | | Dec 31,
2023 | | Dec 31,
2022 |
| Revenues: | | | | | | | | | | | | | | | | | | | | | |
| Specialty Property & Casualty Insurance: | | | | | | | | | | | | | | | | | | | | | |
| Earned Premiums: | | | | | | | | | | | | | | | | | | | | | |
| Personal Automobile | | $ | 699.3 | | | $ | 724.0 | | | | $ | 766.6 | | | $ | 787.9 | | | $ | 830.4 | | | $ | 858.8 | | | $ | 905.8 | | | $ | 901.7 | | | $ | 2,977.8 | | | $ | 3,496.7 | |
| Commercial Automobile | | 166.3 | | | 166.4 | | | | 165.7 | | | 156.3 | | | 151.2 | | | 140.7 | | | 137.9 | | | 119.9 | | | 654.7 | | | 549.7 | |
| Total Specialty Property & Casualty Insurance Earned Premiums | | 865.6 | | | 890.4 | | | | 932.3 | | | 944.2 | | | 981.6 | | | 999.5 | | | 1,043.7 | | | 1,021.6 | | | 3,632.5 | | | 4,046.4 | |
| Net Investment Income | | 42.6 | | | 42.7 | | | | 44.5 | | | 38.5 | | | 37.9 | | | 33.9 | | | 34.0 | | | 34.9 | | | 168.3 | | | 140.7 | |
| Change in Value of Alternative Energy Partnership Investments | | 0.3 | | | 0.5 | | | | 0.4 | | | 0.4 | | | 0.7 | | | 0.3 | | | (2.5) | | | (8.4) | | | 1.6 | | | (9.9) | |
| Other Income | | 1.3 | | | 1.6 | | | | 0.7 | | | 0.9 | | | 1.0 | | | 2.3 | | | 1.0 | | | 1.7 | | | 4.5 | | | 6.0 | |
| Total Specialty Property & Casualty Insurance Revenues | | 909.8 | | | 935.2 | | | | 977.9 | | | 984.0 | | | 1,021.2 | | | 1,036.0 | | | 1,076.2 | | | 1,049.8 | | | 3,806.9 | | | 4,183.2 | |
| Life Insurance: | | | | | | | | | | | | | | | | | | | | | |
| Earned Premiums: | | | | | | | | | | | | | | | | | | | | | |
| Life | | 67.3 | | | 84.9 | | | | 84.8 | | | 82.2 | | | 99.0 | | | 84.3 | | | 86.8 | | | 82.7 | | | 319.2 | | | 352.8 | |
| Accident and Health | | 5.6 | | | 5.8 | | | | 5.8 | | | 5.9 | | | 31.4 | | | 45.9 | | | 45.1 | | | 45.8 | | | 23.1 | | | 168.2 | |
| Property | | 11.1 | | | 11.4 | | | | 11.6 | | | 11.2 | | | 12.2 | | | 11.9 | | | 12.1 | | | 14.3 | | | 45.3 | | | 50.5 | |
| Total Life Insurance Earned Premiums | | 84.0 | | | 102.1 | | | | 102.2 | | | 99.3 | | | 142.6 | | | 142.1 | | | 144.0 | | | 142.8 | | | 387.6 | | | 571.5 | |
| Net Investment Income | | 47.1 | | | 49.4 | | | | 47.1 | | | 49.8 | | | 52.6 | | | 52.6 | | | 61.9 | | | 49.4 | | | 193.4 | | | 216.5 | |
| Change in Value of Alternative Energy Partnership Investments | | 0.1 | | | 0.2 | | | | 0.2 | | | 0.2 | | | 0.3 | | | 0.1 | | | (1.3) | | | (4.4) | | | 0.7 | | | (5.3) | |
| Other Income (Loss) | | 0.2 | | | (0.1) | | | | 0.1 | | | (0.4) | | | 0.2 | | | — | | | (0.8) | | | — | | | (0.2) | | | (0.6) | |
| Total Life Insurance Revenues | | 131.4 | | | 151.6 | | | | 149.6 | | | 148.9 | | | 195.7 | | | 194.8 | | | 203.8 | | | 187.8 | | | 581.5 | | | 782.1 | |
| Total Segment Revenues | | 1,041.2 | | | 1,086.8 | | | | 1,127.5 | | | 1,132.9 | | | 1,216.9 | | | 1,230.8 | | | 1,280.0 | | | 1,237.6 | | | 4,388.4 | | | 4,965.3 | |
| (Loss) Income from Change in Fair Value of Equity and Convertible Securities | | (2.2) | | | 2.8 | | | | 2.4 | | | 1.7 | | | — | | | (11.2) | | | (40.5) | | | (28.2) | | | 4.7 | | | (79.9) | |
| Net Realized Investment Gains (Losses) | | 19.7 | | | (30.3) | | | | (14.4) | | | 6.4 | | | 3.9 | | | (12.1) | | | 11.0 | | | 1.5 | | | (18.6) | | | 4.3 | |
| Impairment Losses | | (1.2) | | | (1.1) | | | | (0.9) | | | 2.1 | | | (3.7) | | | (8.3) | | | (4.9) | | | (8.9) | | | (1.1) | | | (25.8) | |
Non-Core Operations | | 126.7 | | | 138.0 | | | | 145.7 | | | 148.0 | | | 154.5 | | | 161.1 | | | 160.7 | | | 164.2 | | | 558.4 | | | 640.5 | |
| Other | | 3.0 | | | 3.2 | | | | 2.5 | | | 3.7 | | | 3.0 | | | 1.2 | | | 11.4 | | | 3.9 | | | 12.4 | | | 19.5 | |
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| Total Revenues | | $ | 1,187.2 | | | $ | 1,199.4 | | | | $ | 1,262.8 | | | $ | 1,294.8 | | | $ | 1,374.6 | | | $ | 1,361.5 | | | $ | 1,417.7 | | | $ | 1,370.1 | | | $ | 4,944.2 | | | $ | 5,523.9 | |
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Kemper Corporation
Segment Adjusted Operating Results
(Dollars in Millions)
(Unaudited)
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| | | Three Months Ended | | Year Ended |
| | | Dec 31,
2023 | | Sep 30, 2023 | | Jun 30, 2023 | | Mar 31, 2023 | | Dec 31, 2022 | | Sep 30, 2022 | | Jun 30, 2022 | | Mar 31, 2022 | | Dec 31,
2023 | | Dec 31,
2022 |
| Segment Adjusted Operating Income (Loss): | | | | | | | | | | | | | | | | | | | | |
| Specialty Property & Casualty Insurance | | $ | 56.6 | | | $ | (43.2) | | | $ | (15.0) | | | $ | (74.7) | | | $ | (46.5) | | | $ | (39.2) | | | $ | (51.0) | | | $ | (60.2) | | | $ | (76.3) | | | $ | (196.9) | |
| Life Insurance | | 19.9 | | | 17.5 | | | 10.1 | | | 14.8 | | | 26.5 | | | 15.6 | | | 23.9 | | | 12.0 | | | 62.3 | | | 78.0 | |
| Total Segment Adjusted Operating Income (Loss) | | 76.5 | | | (25.7) | | | (4.9) | | | (59.9) | | | (20.0) | | | (23.6) | | | (27.1) | | | (48.2) | | | (14.0) | | | (118.9) | |
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| Corporate and Other Adjusted Operating Loss | | (13.7) | | | (13.3) | | | (15.3) | | | (12.9) | | | (15.5) | | | (16.6) | | | (1.6) | | | (14.0) | | | (55.2) | | | (47.7) | |
| Less: Loss before Income Taxes attributable to Noncontrolling Interest | | (0.2) | | | (0.1) | | | — | | | — | | | — | | | — | | | — | | | — | | | (0.3) | | | — | |
| Adjusted Consolidated Operating Income (Loss) | | 63.0 | | | (38.9) | | | (20.2) | | | (72.8) | | | (35.5) | | | (40.2) | | | (28.7) | | | (62.2) | | | (68.9) | | | (166.6) | |
| Income (Loss) From: | | | | | | | | | | | | | | | | | | | | |
| Change in Fair Value of Equity and Convertible Securities | | (2.2) | | | 2.8 | | | 2.4 | | | 1.7 | | | — | | | (11.2) | | | (40.5) | | | (28.2) | | | 4.7 | | | (79.9) | |
| Net Realized Investment Gains (Losses) | | 19.7 | | | (30.3) | | | (14.4) | | | 6.4 | | | 3.9 | | | (12.1) | | | 11.0 | | | 1.5 | | | (18.6) | | | 4.3 | |
| Impairment Losses | | (1.2) | | | (1.1) | | | (0.9) | | | 2.1 | | | (3.7) | | | (8.3) | | | (4.9) | | | (8.9) | | | (1.1) | | | (25.8) | |
| Acquisition and Disposition Related Transaction, Integration, Restructuring and Other Costs | | (18.3) | | | (43.4) | | | (29.5) | | | (29.1) | | | (35.6) | | | (12.7) | | | (9.9) | | | (4.7) | | | (120.3) | | | (62.9) | |
Debt Extinguishment, Pension Settlement and Other Charges | | — | | | (70.2) | | | — | | | — | | | — | | | — | | | — | | | (3.7) | | | (70.2) | | | (3.7) | |
| Goodwill Impairment Charge | | — | | | — | | | (49.6) | | | — | | | — | | | — | | | — | | | — | | | (49.6) | | | — | |
Non-Core Operations | | 2.7 | | | (9.6) | | | (3.7) | | | (12.2) | | | (2.0) | | | (3.3) | | | (21.6) | | | (9.5) | | | (22.8) | | | (36.4) | |
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Income (Loss) before Income Taxes attributable to Kemper Corporation | | $ | 63.7 | | | $ | (190.7) | | | $ | (115.9) | | | $ | (103.9) | | | $ | (72.9) | | | $ | (87.8) | | | $ | (94.6) | | | $ | (115.7) | | | $ | (346.8) | | | $ | (371.0) | |
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| Segment Adjusted Net Operating Income (Loss): | | | | | | | | | | | | | | | | | | | | |
| Specialty Property & Casualty Insurance | | $ | 45.3 | | | $ | (33.2) | | | $ | (10.8) | | | $ | (58.4) | | | $ | (35.1) | | | $ | (28.7) | | | $ | (38.9) | | | $ | (44.7) | | | $ | (57.1) | | | $ | (147.4) | |
| Life Insurance | | 15.0 | | | 14.7 | | | 8.9 | | | 13.2 | | | 23.0 | | | 14.0 | | | 20.2 | | | 11.6 | | | 51.8 | | | 68.8 | |
| Total Segment Adjusted Net Operating Income (Loss) | | 60.3 | | | (18.5) | | | (1.9) | | | (45.2) | | | (12.1) | | | (14.7) | | | (18.7) | | | (33.1) | | | (5.3) | | | (78.6) | |
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| Corporate and Other Adjusted Net Operating Loss | | (9.9) | | | (9.4) | | | (12.3) | | | (10.5) | | | (11.4) | | | (12.3) | | | (1.7) | | | (12.4) | | | (42.1) | | | (37.8) | |
| Less: Net Loss attributable to Noncontrolling Interest | | (0.1) | | | (0.1) | | | — | | | — | | | — | | | — | | | — | | | — | | | (0.2) | | | — | |
Adjusted Consolidated Net Operating Income (Loss) | | 50.5 | | | (27.8) | | | (14.2) | | | (55.7) | | | (23.5) | | | (27.0) | | | (20.4) | | | (45.5) | | | (47.2) | | | (116.4) | |
| Net Income (Loss) From: | | | | | | | | | | | | | | | | | | | | |
| Change in Fair Value of Equity and Convertible Securities | | (1.8) | | | 2.3 | | | 1.9 | | | 1.3 | | | — | | | (8.8) | | | (32.0) | | | (22.3) | | | 3.7 | | | (63.1) | |
| Net Realized Investment Gains (Losses) | | 15.6 | | | (22.9) | | | (12.5) | | | 5.1 | | | 3.1 | | | (9.6) | | | 8.7 | | | 1.2 | | | (14.7) | | | 3.4 | |
| Impairment Losses | | (1.0) | | | (0.8) | | | (0.8) | | | 1.7 | | | (2.9) | | | (6.6) | | | (3.9) | | | (7.0) | | | (0.9) | | | (20.4) | |
| Acquisition and Disposition Related Transaction, Integration, Restructuring and Other Costs | | (14.4) | | | (34.3) | | | (23.3) | | | (23.0) | | | (29.1) | | | (20.7) | | | (7.8) | | | (3.7) | | | (95.0) | | | (61.3) | |
Debt Extinguishment, Pension Settlement and Other Charges | | — | | | (55.5) | | | — | | | — | | | — | | | — | | | — | | | (2.9) | | | (55.5) | | | (2.9) | |
| Goodwill Impairment Charge | | — | | | — | | | (45.5) | | | — | | | — | | | — | | | — | | | — | | | (45.5) | | | — | |
Non-Core Operations | | 2.5 | | | (7.3) | | | (2.7) | | | (9.5) | | | (0.9) | | | (2.1) | | | (16.8) | | | (6.1) | | | (17.0) | | | (25.9) | |
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Net Income (Loss) attributable to Kemper Corporation | | $ | 51.4 | | | $ | (146.3) | | | $ | (97.1) | | | $ | (80.1) | | | $ | (53.3) | | | $ | (74.8) | | | $ | (72.2) | | | $ | (86.3) | | | $ | (272.1) | | | $ | (286.6) | |
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Kemper Corporation
Catastrophe Frequency and Severity
(Dollars in Millions)
(Unaudited)
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| | Year Ended December 31, 2023 |
| | Specialty Property & Casualty Insurance Segment | | Life Insurance Segment | | Non-Core Operations | | Consolidated |
| | Number of Events | | Losses and LAE | | Number of Events | | Losses and LAE | | Number of Events | | Losses and LAE | | Number of Events | | Losses and LAE |
Range of Losses and LAE Per Event1: | | | | | | | | | | | | | | | | |
| Below $5 | | 63 | | | $ | 29.4 | | | 44 | | | $ | 2.2 | | | 67 | | | $ | 50.0 | | | 68 | | | $ | 77.7 | |
| $5 - $10 | | 1 | | | 5.1 | | | — | | | — | | | 2 | | | 10.0 | | | 3 | | | 19.0 | |
| $10 - $15 | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | |
| $15 - $20 | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | |
| $20 - $25 | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | |
| Greater Than $25 | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | |
| Total | | 64 | | | $ | 34.5 | | | 44 | | | $ | 2.2 | | | 69 | | | $ | 60.0 | | | 71 | | | $ | 96.7 | |
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| | Year Ended December 31, 2022 |
| | Specialty Property & Casualty Insurance Segment | | Life Insurance Segment | | Non-Core Operations | | Consolidated |
| | Number of Events | | Losses and LAE | | Number of Events | | Losses and LAE | | Number of Events | | Losses and LAE | | Number of Events | | Losses and LAE |
Range of Losses and LAE Per Event1: | | | | | | | | | | | | | | | | |
| Below $5 | | 50 | | | $ | 10.8 | | | 40 | | | $ | 1.8 | | | 60 | | | $ | 49.4 | | | 59 | | | $ | 54.6 | |
| $5 - $10 | | — | | | — | | | — | | | — | | | 1 | | | 5.1 | | | 2 | | | 10.2 | |
| $10 - $15 | | 1 | | | 12.2 | | | — | | | — | | | — | | | — | | | 1 | | | 14.5 | |
| $15 - $20 | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | |
| $20 - $25 | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | |
| Greater Than $25 | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | |
| Total | | 51 | | | $ | 23.0 | | | 40 | | | $ | 1.8 | | | 61 | | | $ | 54.5 | | | 62 | | | $ | 79.3 | |
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1 Current accident year net incurred catastrophe Losses and LAE only | | | | | | | | | | | | | | | | |
Kemper Corporation
Catastrophe Frequency and Severity (continued)
(Dollars in Millions)
(Unaudited)
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| | Three Months Ended December 31, 2023 |
| | Specialty Property & Casualty Insurance Segment | | Life Insurance Segment | | Non-Core Operations | | Consolidated |
| | Number of Events | | Losses and LAE | | Number of Events | | Losses and LAE | | Number of Events | | Losses and LAE | | Number of Events | | Losses and LAE |
Range of Losses and LAE Per Event1: | | | | | | | | | | | | | | | | |
| Below $5 | | 6 | | | $ | 2.5 | | | 1 | | | $ | 0.3 | | | 6 | | | $ | 7.7 | | | 7 | | | $ | 10.5 | |
| $5 - $10 | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | |
| $10 - $15 | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | |
| $15 - $20 | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | |
| $20 - $25 | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | |
| Greater Than $25 | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | |
| Total | | 6 | | | $ | 2.5 | | | 1 | | | $ | 0.3 | | | 6 | | | $ | 7.7 | | | 7 | | | $ | 10.5 | |
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| | Three Months Ended December 31, 2022 |
| | Specialty Property & Casualty Insurance Segment | | Life Insurance Segment | | Non-Core Operations | | Consolidated |
| | Number of Events | | Losses and LAE | | Number of Events | | Losses and LAE | | Number of Events | | Losses and LAE | | Number of Events | | Losses and LAE |
Range of Losses and LAE Per Event1: | | | | | | | | | | | | | | | | |
| Below $5 | | 11 | | | $ | (0.1) | | | 8 | | | $ | (0.6) | | | 11 | | | $ | 3.7 | | | 11 | | | $ | 3.0 | |
| $5 - $10 | | — | | | — | | | — | | | — | | | 1 | | | 5.1 | | | 1 | | | 5.1 | |
| $10 - $15 | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | |
| $15 - $20 | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | |
| $20 - $25 | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | |
| Greater Than $25 | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | |
| Total | | 11 | | | $ | (0.1) | | | 8 | | | $ | (0.6) | | | 12 | | | $ | 8.8 | | | 12 | | | $ | 8.1 | |
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1 Current accident year net incurred catastrophe Losses and LAE only | | | | | | | | | | | | | | | | |
Kemper Corporation
Specialty Property & Casualty Insurance Segment
Results of Operations and Selected Financial Information
(Dollars in Millions)
(Unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Three Months Ended | | Year Ended |
| | | Dec 31,
2023 | | Sep 30, 2023 | | | Jun 30, 2023 | | Mar 31, 2023 | | Dec 31, 2022 | | Sep 30, 2022 | | Jun 30, 2022 | | Mar 31, 2022 | | Dec 31,
2023 | | Dec 31,
2022 |
| Results of Operations | | | | | | | | | | | | | | | | | | | | | |
| Net Premiums Written | | $ | 719.7 | | | $ | 733.0 | | | | $ | 830.6 | | | $ | 1,022.1 | | | $ | 922.3 | | | $ | 968.5 | | | $ | 1,019.9 | | | $ | 1,023.7 | | | $ | 3,305.4 | | | $ | 3,934.4 | |
| | | | | | | | | | | | | | | | | | | | | |
| Total Specialty P&C: | | | | | | | | | | | | | | | | | | | | | |
| Personal Automobile | | 699.3 | | | 724.0 | | | | 766.6 | | | 787.9 | | | 830.4 | | | 858.8 | | | 905.8 | | | 901.7 | | | 2,977.8 | | | 3,496.7 | |
| Commercial Automobile | | 166.3 | | | 166.4 | | | | 165.7 | | | 156.3 | | | 151.2 | | | 140.7 | | | 137.9 | | | 119.9 | | | 654.7 | | | 549.7 | |
| Earned Premium | | $ | 865.6 | | | $ | 890.4 | | | | $ | 932.3 | | | $ | 944.2 | | | $ | 981.6 | | | $ | 999.5 | | | $ | 1,043.7 | | | $ | 1,021.6 | | | $ | 3,632.5 | | | $ | 4,046.4 | |
| | | | | | | | | | | | | | | | | | | | | |
| Net Investment Income | | 42.6 | | | 42.7 | | | | 44.5 | | | 38.5 | | | 37.9 | | | 33.9 | | | 34.0 | | | 34.9 | | | 168.3 | | | 140.7 | |
| Change in Value of Alternative Energy Partnership Investments | | 0.3 | | | 0.5 | | | | 0.4 | | | 0.4 | | | 0.7 | | | 0.3 | | | (2.5) | | | (8.4) | | | 1.6 | | | (9.9) | |
| Other Income | | 1.3 | | | 1.6 | | | | 0.7 | | | 0.9 | | | 1.0 | | | 2.3 | | | 1.0 | | | 1.7 | | | 4.5 | | | 6.0 | |
| Total Revenues | | 909.8 | | | 935.2 | | | | 977.9 | | | 984.0 | | | 1,021.2 | | | 1,036.0 | | | 1,076.2 | | | 1,049.8 | | | 3,806.9 | | | 4,183.2 | |
| Incurred Losses and LAE related to: | | | | | | | | | | | | | | | | | | | | | |
| Current Year: | | | | | | | | | | | | | | | | | | | | | |
| Non-catastrophe Losses and LAE | | 673.1 | | | 712.1 | | | | 763.9 | | | 825.4 | | | 859.3 | | | 868.0 | | | 930.2 | | | 911.7 | | | 2,974.5 | | | 3,569.2 | |
| Catastrophe Losses and LAE | | 2.5 | | | 6.2 | | | | 17.4 | | | 8.4 | | | (0.1) | | | 14.8 | | | 6.2 | | | 2.1 | | | 34.5 | | | 23.0 | |
| Prior Years: | | | | | | | | | | | | | | | | | | | | | |
| Non-catastrophe Losses and LAE | | (0.2) | | | 78.8 | | | | 25.0 | | | 31.6 | | | 10.2 | | | (6.6) | | | (14.4) | | | (3.8) | | | 135.2 | | | (14.6) | |
| Catastrophe Losses and LAE | | 0.1 | | | (1.0) | | | | (0.9) | | | (0.5) | | | (0.1) | | | 0.2 | | | (0.2) | | | 0.7 | | | (2.3) | | | 0.6 | |
| Total Incurred Losses and LAE | | 675.5 | | | 796.1 | | | | 805.4 | | | 864.9 | | | 869.3 | | | 876.4 | | | 921.8 | | | 910.7 | | | 3,141.9 | | | 3,578.2 | |
| Insurance Expenses | | 177.7 | | | 182.3 | | | | 187.5 | | | 193.8 | | | 198.4 | | | 198.8 | | | 205.4 | | | 199.3 | | | 741.3 | | | 801.9 | |
| | | | | | | | | | | | | | | | | | | | | |
| Segment Adjusted Operating Income (Loss) | | 56.6 | | | (43.2) | | | | (15.0) | | | (74.7) | | | (46.5) | | | (39.2) | | | (51.0) | | | (60.2) | | | (76.3) | | | (196.9) | |
| Income Tax (Expense) Benefit | | (11.3) | | | 10.0 | | | | 4.2 | | | 16.3 | | | 11.4 | | | 10.5 | | | 12.1 | | | 15.5 | | | 19.2 | | | 49.5 | |
| Total Segment Adjusted Net Operating Income (Loss) | | $ | 45.3 | | | $ | (33.2) | | | | $ | (10.8) | | | $ | (58.4) | | | $ | (35.1) | | | $ | (28.7) | | | $ | (38.9) | | | $ | (44.7) | | | $ | (57.1) | | | $ | (147.4) | |
| Ratios Based On Earned Premiums | | | | | | | | | | | | | | | | | | | | | |
| Current Year Non-catastrophe Losses and LAE Ratio | | 77.7 | % | | 80.0 | % | | | 81.9 | % | | 87.5 | % | | 87.6 | % | | 86.9 | % | | 89.1 | % | | 89.2 | % | | 82.0 | % | | 88.2 | % |
| Current Year Catastrophe Losses and LAE Ratio | | 0.3 | | | 0.7 | | | | 1.9 | | | 0.9 | | | — | | | 1.5 | | | 0.6 | | | 0.2 | | | 0.9 | | | 0.6 | |
| Prior Years Non-catastrophe Losses and LAE Ratio | | — | | | 8.8 | | | | 2.7 | | | 3.3 | | | 1.0 | | | (0.7) | | | (1.4) | | | (0.4) | | | 3.7 | | | (0.4) | |
| Prior Years Catastrophe Losses and LAE Ratio | | — | | | (0.1) | | | | (0.1) | | | (0.1) | | | — | | | — | | | — | | | 0.1 | | | (0.1) | | | — | |
| Total Incurred Loss and LAE Ratio | | 78.0 | | | 89.4 | | | | 86.4 | | | 91.6 | | | 88.6 | | | 87.7 | | | 88.3 | | | 89.1 | | | 86.5 | | | 88.4 | |
| Insurance Expense Ratio | | 20.5 | | | 20.5 | | | | 20.1 | | | 20.5 | | | 20.2 | | | 19.9 | | | 19.7 | | | 19.5 | | | 20.4 | | | 19.8 | |
| Combined Ratio | | 98.5 | % | | 109.9 | % | | | 106.5 | % | | 112.1 | % | | 108.8 | % | | 107.6 | % | | 108.0 | % | | 108.6 | % | | 106.9 | % | | 108.2 | % |
Underlying Combined Ratio 1 | | | | | | | | | | | | | | | | | | | | | |
| Current Year Non-catastrophe Losses and LAE Ratio | | 77.7 | % | | 80.0 | % | | | 81.9 | % | | 87.5 | % | | 87.6 | % | | 86.9 | % | | 89.1 | % | | 89.2 | % | | 82.0 | % | | 88.2 | % |
| Insurance Expense Ratio | | 20.5 | | | 20.5 | | | | 20.1 | | | 20.5 | | | 20.2 | | | 19.9 | | | 19.7 | | | 19.5 | | | 20.4 | | | 19.8 | |
| Underlying Combined Ratio | | 98.2 | % | | 100.5 | % | | | 102.0 | % | | 108.0 | % | | 107.8 | % | | 106.8 | % | | 108.8 | % | | 108.7 | % | | 102.4 | % | | 108.0 | % |
| Non-GAAP Measure Reconciliation | | | | | | | | | | | | | | | | | | | | | |
| Combined Ratio as Reported | | 98.5 | % | | 109.9 | % | | | 106.5 | % | | 112.1 | % | | 108.8 | % | | 107.6 | % | | 108.0 | % | | 108.6 | % | | 106.9 | % | | 108.2 | % |
| Less: | | | | | | | | | | | | | | | | | | | | | |
| Current Year Catastrophe Losses and LAE Ratio | | 0.3 | | | 0.7 | | | | 1.9 | | | 0.9 | | | — | | | 1.5 | | | 0.6 | | | 0.2 | | | 0.9 | | | 0.6 | |
| Prior Years Non-catastrophe Losses and LAE Ratio | | — | | | 8.8 | | | | 2.7 | | | 3.3 | | | 1.0 | | | (0.7) | | | (1.4) | | | (0.4) | | | 3.7 | | | (0.4) | |
| Prior Years Catastrophe Losses and LAE Ratio | | — | | | (0.1) | | | | (0.1) | | | (0.1) | | | — | | | — | | | — | | | 0.1 | | | (0.1) | | | — | |
| Underlying Combined Ratio | | 98.2 | % | | 100.5 | % | | | 102.0 | % | | 108.0 | % | | 107.8 | % | | 106.8 | % | | 108.8 | % | | 108.7 | % | | 102.4 | % | | 108.0 | % |
1 Underlying Combined Ratio is a non-GAAP measure, which is computed as the difference between three operating ratios: the combined ratio, the effect of catastrophes (excluding development of prior-year catastrophes) on the combined ratio and the effect of prior-year reserve development at the reporting date (including development on prior-year catastrophes) on the combined ratio. |
Kemper Corporation
Specialty Property & Casualty Insurance Segment
Results of Operations and Selected Financial Information (continued)
(Dollars in Millions)
(Unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Dec 31,
2023 | | Sep 30, 2023 | | Jun 30, 2023 | | Mar 31, 2023 | | Dec 31, 2022 | | Sep 30, 2022 | | Jun 30, 2022 | | Mar 31, 2022 |
| Insurance Reserves: | | | | | | | | | | | | | | | | |
| Non-Standard Automobile | | $ | 1,711.9 | | | $ | 1,761.6 | | | $ | 1,741.4 | | | $ | 1,805.6 | | | $ | 1,875.8 | | | $ | 1,857.0 | | | $ | 1,915.2 | | | $ | 1,952.3 | |
| Commercial Automobile | | 596.8 | | | 570.3 | | | 530.8 | | | 491.4 | | | 445.3 | | | 417.8 | | | 385.9 | | | 356.5 | |
| Insurance Reserves | | $ | 2,308.7 | | | $ | 2,331.9 | | | $ | 2,272.2 | | | $ | 2,297.0 | | | $ | 2,321.1 | | | $ | 2,274.8 | | | $ | 2,301.1 | | | $ | 2,308.8 | |
| Insurance Reserves: | | | | | | | | | | | | | | | | |
| Loss and Allocated LAE Reserves: | | | | | | | | | | | | | | | | |
| Case and Allocated LAE | | $ | 999.9 | | | $ | 1,048.0 | | | $ | 1,061.7 | | | $ | 1,094.8 | | | $ | 1,099.9 | | | $ | 1,110.7 | | | $ | 1,151.0 | | | $ | 1,166.0 | |
| Incurred but Not Reported | | 1,132.8 | | | 1,107.7 | | | 1,036.7 | | | 1,027.0 | | | 1,041.2 | | | 968.2 | | | 940.4 | | | 934.0 | |
| Total Loss Reserves | | 2,132.7 | | | 2,155.7 | | | 2,098.4 | | | 2,121.8 | | | 2,141.1 | | | 2,078.9 | | | 2,091.4 | | | 2,100.0 | |
| Unallocated LAE Reserves | | 176.0 | | | 176.2 | | | 173.8 | | | 175.2 | | | 180.0 | | | 195.9 | | | 209.7 | | | 208.8 | |
| Insurance Reserves | | $ | 2,308.7 | | | $ | 2,331.9 | | | $ | 2,272.2 | | | $ | 2,297.0 | | | $ | 2,321.1 | | | $ | 2,274.8 | | | $ | 2,301.1 | | | $ | 2,308.8 | |
Kemper Corporation
Specialty Property & Casualty Insurance Segment
Personal Automobile Insurance - Results of Operations and Selected Financial Information
(Dollars in Millions)
(Unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Three Months Ended | | Year Ended |
| | | Dec 31,
2023 | | Sep 30, 2023 | | | Jun 30, 2023 | | Mar 31, 2023 | | Dec 31, 2022 | | Sep 30, 2022 | | Jun 30, 2022 | | Mar 31, 2022 | | Dec 31,
2023 | | Dec 31,
2022 |
| Results of Operations | | | | | | | | | | | | | | | | | | | | | |
| Net Premiums Written | | $ | 563.8 | | | $ | 583.9 | | | | $ | 687.4 | | | $ | 842.4 | | | $ | 762.8 | | | $ | 805.2 | | | $ | 852.3 | | | $ | 884.8 | | | $ | 2,677.5 | | | $ | 3,305.1 | |
| | | | | | | | | | | | | | | | | | | | | |
| Earned Premiums | | $ | 699.3 | | | $ | 724.0 | | | | $ | 766.6 | | | $ | 787.9 | | | $ | 830.4 | | | $ | 858.8 | | | $ | 905.8 | | | $ | 901.7 | | | $ | 2,977.8 | | | $ | 3,496.7 | |
| Net Investment Income | | 32.3 | | | 32.5 | | | | 33.8 | | | 29.9 | | | 29.7 | | | 26.5 | | | 26.6 | | | 27.2 | | | 128.5 | | | 110.0 | |
| Change in Value of Alternative Energy Partnership Investments | | 0.2 | | | 0.4 | | | | 0.3 | | | 0.3 | | | 0.5 | | | 0.3 | | | (1.8) | | | (6.0) | | | 1.2 | | | (7.0) | |
| Other Income | | 1.3 | | | 1.6 | | | | 0.7 | | | 0.9 | | | 1.0 | | | 2.3 | | | 1.0 | | | 1.7 | | | 4.5 | | | 6.0 | |
| Total Revenues | | 733.1 | | | 758.5 | | | | 801.4 | | | 819.0 | | | 861.6 | | | 887.9 | | | 931.6 | | | 924.6 | | | 3,112.0 | | | 3,605.7 | |
| Incurred Losses and LAE related to: | | | | | | | | | | | | | | | | | | | | | |
| Current Year: | | | | | | | | | | | | | | | | | | | | | |
| Non-catastrophe Losses and LAE | | 544.2 | | | 583.5 | | | | 638.7 | | | 697.6 | | | 739.8 | | | 757.8 | | | 828.6 | | | 827.7 | | | 2,464.0 | | | 3,153.9 | |
| Catastrophe Losses and LAE | | 1.9 | | | 5.0 | | | | 15.0 | | | 7.7 | | | (0.2) | | | 13.1 | | | 5.8 | | | 2.0 | | | 29.6 | | | 20.7 | |
| Prior Years: | | | | | | | | | | | | | | | | | | | | | |
| Non-catastrophe Losses and LAE | | (2.2) | | | 71.8 | | | | 18.0 | | | 23.4 | | | 14.1 | | | (6.7) | | | (16.5) | | | (9.0) | | | 111.0 | | | (18.1) | |
| Catastrophe Losses and LAE | | — | | | (0.9) | | | | (0.9) | | | (0.5) | | | (0.1) | | | 0.1 | | | (0.2) | | | 0.7 | | | (2.3) | | | 0.5 | |
| Total Incurred Losses and LAE | | 543.9 | | | 659.4 | | | | 670.8 | | | 728.2 | | | 753.6 | | | 764.3 | | | 817.7 | | | 821.4 | | | 2,602.3 | | | 3,157.0 | |
| Insurance Expenses | | 151.4 | | | 155.3 | | | | 157.1 | | | 162.0 | | | 172.2 | | | 172.9 | | | 179.7 | | | 177.3 | | | 625.8 | | | 702.1 | |
| | | | | | | | | | | | | | | | | | | | | |
| Adjusted Operating Income (Loss) | | 37.8 | | | (56.2) | | | | (26.5) | | | (71.2) | | | (64.2) | | | (49.3) | | | (65.8) | | | (74.1) | | | (116.1) | | | (253.4) | |
| Income Tax (Expense) Benefit | | (7.5) | | | 12.4 | | | | 6.3 | | | 15.5 | | | 14.7 | | | 12.3 | | | 14.9 | | | 17.7 | | | 26.7 | | | 59.6 | |
| Total Product Line Adjusted Net Operating Income (Loss) | | $ | 30.3 | | | $ | (43.8) | | | | $ | (20.2) | | | $ | (55.7) | | | $ | (49.5) | | | $ | (37.0) | | | $ | (50.9) | | | $ | (56.4) | | | $ | (89.4) | | | $ | (193.8) | |
| Ratios Based On Earned Premiums | | | | | | | | | | | | | | | | | | | | | |
| Current Year Non-catastrophe Losses and LAE Ratio | | 77.8 | % | | 80.6 | % | | | 83.3 | % | | 88.5 | % | | 89.1 | % | | 88.3 | % | | 91.5 | % | | 91.8 | % | | 82.8 | % | | 90.2 | % |
| Current Year Catastrophe Losses and LAE Ratio | | 0.3 | | | 0.7 | | | | 2.0 | | | 1.0 | | | — | | | 1.5 | | | 0.6 | | | 0.2 | | | 1.0 | | | 0.6 | |
| Prior Years Non-catastrophe Losses and LAE Ratio | | (0.3) | | | 9.9 | | | | 2.3 | | | 3.0 | | | 1.7 | | | (0.8) | | | (1.8) | | | (1.0) | | | 3.7 | | | (0.5) | |
| Prior Years Catastrophe Losses and LAE Ratio | | — | | | (0.1) | | | | (0.1) | | | (0.1) | | | — | | | — | | | — | | | 0.1 | | | (0.1) | | | — | |
| Total Incurred Loss and LAE Ratio | | 77.8 | | | 91.1 | | | | 87.5 | | | 92.4 | | | 90.8 | | | 89.0 | | | 90.3 | | | 91.1 | | | 87.4 | | | 90.3 | |
| Insurance Expense Ratio | | 21.7 | | | 21.5 | | | | 20.5 | | | 20.6 | | | 20.7 | | | 20.1 | | | 19.8 | | | 19.7 | | | 21.0 | | | 20.1 | |
| Combined Ratio | | 99.5 | % | | 112.6 | % | | | 108.0 | % | | 113.0 | % | | 111.5 | % | | 109.1 | % | | 110.1 | % | | 110.8 | % | | 108.4 | % | | 110.4 | % |
Underlying Combined Ratio 1 | | | | | | | | | | | | | | | | | | | | | |
| Current Year Non-catastrophe Losses and LAE Ratio | | 77.8 | % | | 80.6 | % | | | 83.3 | % | | 88.5 | % | | 89.1 | % | | 88.3 | % | | 91.5 | % | | 91.8 | % | | 82.8 | % | | 90.2 | % |
| Insurance Expense Ratio | | 21.7 | | | 21.5 | | | | 20.5 | | | 20.6 | | | 20.7 | | | 20.1 | | | 19.8 | | | 19.7 | | | 21.0 | | | 20.1 | |
| Underlying Combined Ratio | | 99.5 | % | | 102.1 | % | | | 103.8 | % | | 109.1 | % | | 109.8 | % | | 108.4 | % | | 111.3 | % | | 111.5 | % | | 103.8 | % | | 110.3 | % |
| Non-GAAP Measure Reconciliation | | | | | | | | | | | | | | | | | | | | | |
| Combined Ratio | | 99.5 | % | | 112.6 | % | | | 108.0 | % | | 113.0 | % | | 111.5 | % | | 109.1 | % | | 110.1 | % | | 110.8 | % | | 108.4 | % | | 110.4 | % |
| Less: | | | | | | | | | | | | | | | | | | | | | |
| Current Year Catastrophe Losses and LAE Ratio | | 0.3 | | | 0.7 | | | | 2.0 | | | 1.0 | | | — | | | 1.5 | | | 0.6 | | | 0.2 | | | 1.0 | | | 0.6 | |
| Prior Years Non-catastrophe Losses and LAE Ratio | | (0.3) | | | 9.9 | | | | 2.3 | | | 3.0 | | | 1.7 | | | (0.8) | | | (1.8) | | | (1.0) | | | 3.7 | | | (0.5) | |
| Prior Years Catastrophe Losses and LAE Ratio | | — | | | (0.1) | | | | (0.1) | | | (0.1) | | | — | | | — | | | — | | | 0.1 | | | (0.1) | | | — | |
| Underlying Combined Ratio | | 99.5 | % | | 102.1 | % | | | 103.8 | % | | 109.1 | % | | 109.8 | % | | 108.4 | % | | 111.3 | % | | 111.5 | % | | 103.8 | % | | 110.3 | % |
1 Underlying Combined Ratio is a non-GAAP measure, which is computed as the difference between three operating ratios: the combined ratio, the effect of catastrophes (excluding development of prior-year catastrophes) on the combined ratio and the effect of prior-year reserve development at the reporting date (including development on prior-year catastrophes) on the combined ratio. |
Kemper Corporation
Specialty Property & Casualty Insurance Segment
Commercial Automobile Insurance - Results of Operations and Selected Financial Information
(Dollars in Millions)
(Unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Three Months Ended | | Year Ended |
| | | Dec 31,
2023 | | Sep 30, 2023 | | | Jun 30, 2023 | | Mar 31, 2023 | | Dec 31, 2022 | | Sep 30, 2022 | | Jun 30, 2022 | | Mar 31, 2022 | | Dec 31,
2023 | | Dec 31,
2022 |
| Results of Operations | | | | | | | | | | | | | | | | | | | | | |
| Net Premiums Written | | $ | 155.9 | | | $ | 149.1 | | | | $ | 143.2 | | | $ | 179.7 | | | $ | 159.5 | | | $ | 163.3 | | | $ | 167.6 | | | $ | 138.9 | | | $ | 627.9 | | | $ | 629.3 | |
| | | | | | | | | | | | | | | | | | | | | |
| Earned Premiums | | $ | 166.3 | | | $ | 166.4 | | | | $ | 165.7 | | | $ | 156.3 | | | $ | 151.2 | | | $ | 140.7 | | | $ | 137.9 | | | $ | 119.9 | | | $ | 654.7 | | | $ | 549.7 | |
| Net Investment Income | | 10.3 | | | 10.2 | | | | 10.7 | | | 8.6 | | | 8.2 | | | 7.4 | | | 7.4 | | | 7.7 | | | 39.8 | | | 30.7 | |
| Change in Value of Alternative Energy Partnership Investments | | 0.1 | | | 0.1 | | | | 0.1 | | | 0.1 | | | 0.2 | | | — | | | (0.7) | | | (2.4) | | | 0.4 | | | (2.9) | |
| | | | | | | | | | | | | | | | | | | | | |
| Total Revenues | | 176.7 | | | 176.7 | | | | 176.5 | | | 165.0 | | | 159.6 | | | 148.1 | | | 144.6 | | | 125.2 | | | 694.9 | | | 577.5 | |
| Incurred Losses and LAE related to: | | | | | | | | | | | | | | | | | | | | | |
| Current Year: | | | | | | | | | | | | | | | | | | | | | |
| Non-catastrophe Losses and LAE | | 128.9 | | | 128.6 | | | | 125.2 | | | 127.8 | | | 119.5 | | | 110.2 | | | 101.6 | | | 84.0 | | | 510.5 | | | 415.3 | |
| Catastrophe Losses and LAE | | 0.6 | | | 1.2 | | | | 2.4 | | | 0.7 | | | 0.1 | | | 1.7 | | | 0.4 | | | 0.1 | | | 4.9 | | | 2.3 | |
| Prior Years: | | | | | | | | | | | | | | | | | | | | | |
| Non-catastrophe Losses and LAE | | 2.0 | | | 7.0 | | | | 7.0 | | | 8.2 | | | (3.9) | | | 0.1 | | | 2.1 | | | 5.2 | | | 24.2 | | | 3.5 | |
| Catastrophe Losses and LAE | | 0.1 | | | (0.1) | | | | — | | | — | | | — | | | 0.1 | | | — | | | — | | | — | | | 0.1 | |
| Total Incurred Losses and LAE | | 131.6 | | | 136.7 | | | | 134.6 | | | 136.7 | | | 115.7 | | | 112.1 | | | 104.1 | | | 89.3 | | | 539.6 | | | 421.2 | |
| Insurance Expenses | | 26.3 | | | 27.0 | | | | 30.4 | | | 31.8 | | | 26.2 | | | 25.9 | | | 25.7 | | | 22.0 | | | 115.5 | | | 99.8 | |
| | | | | | | | | | | | | | | | | | | | | |
| Adjusted Operating Income (Loss) | | 18.8 | | | 13.0 | | | | 11.5 | | | (3.5) | | | 17.7 | | | 10.1 | | | 14.8 | | | 13.9 | | | 39.8 | | | 56.5 | |
| Income Tax (Expense) Benefit | | (3.8) | | | (2.4) | | | | (2.1) | | | 0.8 | | | (3.3) | | | (1.8) | | | (2.8) | | | (2.2) | | | (7.5) | | | (10.1) | |
| Total Product Line Adjusted Net Operating Income (Loss) | | $ | 15.0 | | | $ | 10.6 | | | | $ | 9.4 | | | $ | (2.7) | | | $ | 14.4 | | | $ | 8.3 | | | $ | 12.0 | | | $ | 11.7 | | | $ | 32.3 | | | $ | 46.4 | |
| Ratios Based On Earned Premiums | | | | | | | | | | | | | | | | | | | | | |
| Current Year Non-catastrophe Losses and LAE Ratio | | 77.4 | % | | 77.4 | % | | | 75.6 | % | | 81.9 | % | | 79.0 | % | | 78.3 | % | | 73.7 | % | | 70.1 | % | | 78.0 | % | | 75.6 | % |
| Current Year Catastrophe Losses and LAE Ratio | | 0.4 | | | 0.7 | | | | 1.4 | | | 0.4 | | | 0.1 | | | 1.2 | | | 0.3 | | | 0.1 | | | 0.7 | | | 0.4 | |
| Prior Years Non-catastrophe Losses and LAE Ratio | | 1.2 | | | 4.2 | | | | 4.2 | | | 5.2 | | | (2.6) | | | 0.1 | | | 1.5 | | | 4.3 | | | 3.7 | | | 0.6 | |
| Prior Years Catastrophe Losses and LAE Ratio | | 0.1 | | | (0.1) | | | | — | | | — | | | — | | | 0.1 | | | — | | | — | | | — | | | — | |
| Total Incurred Loss and LAE Ratio | | 79.1 | | | 82.2 | | | | 81.2 | | | 87.5 | | | 76.5 | | | 79.7 | | | 75.5 | | | 74.5 | | | 82.4 | | | 76.6 | |
| Insurance Expense Ratio | | 15.8 | | | 16.2 | | | | 18.3 | | | 20.3 | | | 17.3 | | | 18.4 | | | 18.6 | | | 18.3 | | | 17.6 | | | 18.2 | |
| Combined Ratio | | 94.9 | % | | 98.4 | % | | | 99.5 | % | | 107.8 | % | | 93.8 | % | | 98.1 | % | | 94.1 | % | | 92.8 | % | | 100.0 | % | | 94.8 | % |
Underlying Combined Ratio 1 | | | | | | | | | | | | | | | | | | | | | |
| Current Year Non-catastrophe Losses and LAE Ratio | | 77.4 | % | | 77.4 | % | | | 75.6 | % | | 81.9 | % | | 79.0 | % | | 78.3 | % | | 73.7 | % | | 70.1 | % | | 78.0 | % | | 75.6 | % |
| Insurance Expense Ratio | | 15.8 | | | 16.2 | | | | 18.3 | | | 20.3 | | | 17.3 | | | 18.4 | | | 18.6 | | | 18.3 | | | 17.6 | | | 18.2 | |
| Underlying Combined Ratio | | 93.2 | % | | 93.6 | % | | | 93.9 | % | | 102.2 | % | | 96.3 | % | | 96.7 | % | | 92.3 | % | | 88.4 | % | | 95.6 | % | | 93.8 | % |
| Non-GAAP Measure Reconciliation | | | | | | | | | | | | | | | | | | | | | |
| Combined Ratio | | 94.9 | % | | 98.4 | % | | | 99.5 | % | | 107.8 | % | | 93.8 | % | | 98.1 | % | | 94.1 | % | | 92.8 | % | | 100.0 | % | | 94.8 | % |
| Less: | | | | | | | | | | | | | | | | | | | | | |
| Current Year Catastrophe Losses and LAE Ratio | | 0.4 | | | 0.7 | | | | 1.4 | | | 0.4 | | | 0.1 | | | 1.2 | | | 0.3 | | | 0.1 | | | 0.7 | | | 0.4 | |
| Prior Years Non-catastrophe Losses and LAE Ratio | | 1.2 | | | 4.2 | | | | 4.2 | | | 5.2 | | | (2.6) | | | 0.1 | | | 1.5 | | | 4.3 | | | 3.7 | | | 0.6 | |
| Prior Years Catastrophe Losses and LAE Ratio | | 0.1 | | | (0.1) | | | | — | | | — | | | — | | | 0.1 | | | — | | | — | | | — | | | — | |
| Underlying Combined Ratio | | 93.2 | % | | 93.6 | % | | | 93.9 | % | | 102.2 | % | | 96.3 | % | | 96.7 | % | | 92.3 | % | | 88.4 | % | | 95.6 | % | | 93.8 | % |
1 Underlying Combined Ratio is a non-GAAP measure, which is computed as the difference between three operating ratios: the combined ratio, the effect of catastrophes (excluding development of prior-year catastrophes) on the combined ratio and the effect of prior-year reserve development at the reporting date (including development on prior-year catastrophes) on the combined ratio. |
Kemper Corporation
Life Insurance Segment
Results of Operations and Selected Financial Information
(Dollars in Millions)
(Unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Three Months Ended | | Year Ended |
| | | Dec 31,
2023 | | | Sep 30, 2023 | | Jun 30, 2023 | | Mar 31, 2023 | | Dec 31, 2022 | | Sep 30, 2022 | | Jun 30, 2022 | | Mar 31, 2022 | | Dec 31,
2023 | | Dec 31,
2022 |
| Results of Operations | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
Earned Premiums 1 | | $ | 84.0 | | | | $ | 102.1 | | | $ | 102.2 | | | $ | 99.3 | | | $ | 142.6 | | | $ | 142.1 | | | $ | 144.0 | | | $ | 142.8 | | | $ | 387.6 | | | $ | 571.5 | |
| Net Investment Income | | 47.1 | | | | 49.4 | | | 47.1 | | | 49.8 | | | 52.6 | | | 52.6 | | | 61.9 | | | 49.4 | | | 193.4 | | | 216.5 | |
| Change in Value of Alternative Energy Partnership Investments | | 0.1 | | | | 0.2 | | | 0.2 | | | 0.2 | | | 0.3 | | | 0.1 | | | (1.3) | | | (4.4) | | | 0.7 | | | (5.3) | |
| Other Income (Loss) | | 0.2 | | | | (0.1) | | | 0.1 | | | (0.4) | | | 0.2 | | | — | | | (0.8) | | | — | | | (0.2) | | | (0.6) | |
| Total Revenues | | 131.4 | | | | 151.6 | | | 149.6 | | | 148.9 | | | 195.7 | | | 194.8 | | | 203.8 | | | 187.8 | | | 581.5 | | | 782.1 | |
Policyholders’ Benefits and Incurred Losses and LAE 2 | | 40.5 | | | | 64.7 | | | 68.3 | | | 69.9 | | | 88.1 | | | 88.5 | | | 94.3 | | | 89.9 | | | 243.4 | | | 360.8 | |
| Insurance Expenses | | 71.0 | | | | 69.4 | | | 71.2 | | | 64.2 | | | 81.1 | | | 90.7 | | | 85.6 | | | 85.9 | | | 275.8 | | | 343.3 | |
| | | | | | | | | | | | | | | | | | | | | |
| Segment Adjusted Operating Income | | 19.9 | | | | 17.5 | | | 10.1 | | | 14.8 | | | 26.5 | | | 15.6 | | | 23.9 | | | 12.0 | | | 62.3 | | | 78.0 | |
| Income Tax Expense | | (4.9) | | | | (2.8) | | | (1.2) | | | (1.6) | | | (3.5) | | | (1.6) | | | (3.7) | | | (0.4) | | | (10.5) | | | (9.2) | |
| Total Segment Adjusted Net Operating Income | | $ | 15.0 | | | | $ | 14.7 | | | $ | 8.9 | | | $ | 13.2 | | | $ | 23.0 | | | $ | 14.0 | | | $ | 20.2 | | | $ | 11.6 | | | $ | 51.8 | | | $ | 68.8 | |
| | | | | | | | | | | | | | | | | | | | | |
1 Earned Premiums were impacted by changes in deferred profit liability related to the annual review and assumptions update under LDTI that decreased earned premiums by $15.0 million in fourth quarter and full year 2023 and increased earned premiums by $12.7 million in fourth quarter and full year 2022. |
2 Policyholders’ Benefits and Incurred Losses and LAE was impacted by changes in the annual assumptions update under LDTI that resulted in a $23.3 million decrease in policyholders’ benefits for fourth quarter and full year 2023 an $8.7 million increase in policyholders’ benefits for fourth quarter and full year 2022. |
Kemper Corporation
Life Insurance Segment
Results of Operations and Selected Financial Information (continued)
(Dollars in Millions)
(Unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Dec 31,
2023 | | Sep 30, 2023 | | Jun 30, 2023 | | Mar 31, 2023 | | Dec 31,
2022 | | Sep 30, 2022 1 | | Jun 30, 2022 | | Mar 31, 2022 |
| Insurance Reserves: | | | | | | | | | | | | | | | | |
| Future Policyholder Benefits | | $ | 3,375.6 | | | $ | 3,048.7 | | | $ | 3,315.2 | | | $ | 3,346.9 | | | $ | 3,218.5 | | | $ | 3,190.2 | | | $ | 3,503.4 | | | $ | 4,015.4 | |
| Incurred Losses and LAE Reserves: | | | | | | | | | | | | | | | | |
| Life | | 42.1 | | | 44.6 | | | 44.2 | | | 48.3 | | | 53.3 | | | 55.7 | | | 56.7 | | | 63.6 | |
| Accident and Health | | 4.7 | | | 4.8 | | | 4.4 | | | 4.4 | | | 4.3 | | | 23.4 | | | 25.0 | | | 25.2 | |
| Property | | 2.9 | | | 2.7 | | | 2.6 | | | 2.7 | | | 2.3 | | | 3.6 | | | 3.1 | | | 3.1 | |
| Total Incurred Losses and LAE Reserves | | 49.7 | | | 52.1 | | | 51.2 | | | 55.4 | | | 59.9 | | | 82.7 | | | 84.8 | | | 91.9 | |
| Insurance Reserves | | $ | 3,425.3 | | | $ | 3,100.8 | | | $ | 3,366.4 | | | $ | 3,402.3 | | | $ | 3,278.4 | | | $ | 3,272.9 | | | $ | 3,588.2 | | | $ | 4,107.3 | |
1 Includes reserves classified as Held-for-Sale Liabilities on the Condensed Consolidated Balance Sheets. |
Kemper Corporation
Life Insurance Segment
Life Insurance - Results of Operations and Selected Financial Information
(Dollars in Millions)
(Unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Three Months Ended | | Year Ended |
| | | Dec 31,
2023 | | Sep 30, 2023 | | Jun 30, 2023 | | Mar 31, 2023 | | Dec 31, 2022 | | Sep 30, 2022 | | Jun 30, 2022 | | Mar 31, 2022 | | Dec 31,
2023 | | Dec 31,
2022 |
| Results of Operations | | | | | | | | | | | | | | | | | | | | |
Earned Premiums 1 | | $ | 67.3 | | | $ | 84.9 | | | $ | 84.8 | | | $ | 82.2 | | | $ | 99.0 | | | $ | 84.3 | | | $ | 86.8 | | | $ | 82.7 | | | $ | 319.2 | | | $ | 352.8 | |
| Net Investment Income | | 46.7 | | | 49.0 | | | 46.6 | | | 49.5 | | | 51.0 | | | 51.0 | | | 60.1 | | | 47.9 | | | 191.8 | | | 210.0 | |
| Change in Value of Alternative Energy Partnership Investments | | 0.1 | | | 0.2 | | | 0.2 | | | 0.2 | | | 0.3 | | | 0.1 | | | (1.3) | | | (4.0) | | | 0.7 | | | (4.9) | |
| Other Income (Loss) | | 0.1 | | | — | | | — | | | (0.5) | | | 0.1 | | | (0.1) | | | (1.1) | | | — | | | (0.4) | | | (1.1) | |
| Total Revenues | | 114.2 | | | 134.1 | | | 131.6 | | | 131.4 | | | 150.4 | | | 135.3 | | | 144.5 | | | 126.6 | | | 511.3 | | | 556.8 | |
Policyholders’ Benefits and Incurred Losses and LAE 2 | | 35.5 | | | 59.1 | | | 60.0 | | | 64.1 | | | 70.4 | | | 61.5 | | | 64.9 | | | 60.4 | | | 218.7 | | | 257.2 | |
| Insurance Expenses | | 62.7 | | | 59.9 | | | 62.3 | | | 56.1 | | | 58.9 | | | 61.7 | | | 58.9 | | | 58.2 | | | 241.0 | | | 237.7 | |
| | | | | | | | | | | | | | | | | | | | |
| Adjusted Operating Income | | 16.0 | | | 15.1 | | | 9.3 | | | 11.2 | | | 21.1 | | | 12.1 | | | 20.7 | | | 8.0 | | | 51.6 | | | 61.9 | |
| Income Tax (Expense) Benefit | | (4.1) | | | (2.2) | | | (1.0) | | | (0.9) | | | (2.6) | | | (0.9) | | | (3.0) | | | 0.3 | | | (8.2) | | | (6.2) | |
| Total Product Line Adjusted Net Operating Income | | $ | 11.9 | | | $ | 12.9 | | | $ | 8.3 | | | $ | 10.3 | | | $ | 18.5 | | | $ | 11.2 | | | $ | 17.7 | | | $ | 8.3 | | | $ | 43.4 | | | $ | 55.7 | |
| | | | | | | | | | | | | | | | | | | | |
1 Earned Premiums were impacted by changes in deferred profit liability related to the annual review and assumptions update under LDTI that decreased earned premiums by $15.0 million in fourth quarter and full year 2023 and increased earned premiums by $12.7 million in fourth quarter and full year 2022. |
2 Policyholders’ Benefits and Incurred Losses and LAE was impacted by changes in the annual assumptions update under LDTI that resulted in a $23.3 million decrease in policyholders’ benefits for fourth quarter and full year 2023 an $8.7 million increase in policyholders’ benefits for fourth quarter and full year 2022. |
Kemper Corporation
Life Insurance Segment
Accident & Health Insurance - Results of Operations and Selected Financial Information
(Dollars in Millions)
(Unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | Three Months Ended | | Year Ended |
| | | | Dec 31,
2023 | | Sep 30, 2023 | | Jun 30, 2023 | | Mar 31, 2023 | | Dec 31, 2022 | | Sep 30, 2022 | | Jun 30, 2022 | | Mar 31, 2022 | | Dec 31,
2023 | | Dec 31,
2022 |
| Results of Operations | | | | | | | | | | | | | | | | | | | | | |
| Earned Premiums | | | $ | 5.6 | | | $ | 5.8 | | | $ | 5.8 | | | $ | 5.9 | | | $ | 31.4 | | | $ | 45.9 | | | $ | 45.1 | | | $ | 45.8 | | | $ | 23.1 | | | $ | 168.2 | |
| Net Investment Income | | | — | | | — | | | — | | | — | | | 0.8 | | | 0.8 | | | 1.0 | | | 0.7 | | | — | | | 3.3 | |
| Change in Value of Alternative Energy Partnership Investments | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | (0.1) | | | — | | | (0.1) | |
| Other Income (Loss) | | | 0.1 | | | (0.1) | | | 0.1 | | | 0.1 | | | 0.1 | | | 0.1 | | | 0.3 | | | — | | | 0.2 | | | 0.5 | |
| Total Revenues | | | 5.7 | | | 5.7 | | | 5.9 | | | 6.0 | | | 32.3 | | | 46.8 | | | 46.4 | | | 46.4 | | | 23.3 | | | 171.9 | |
| Policyholders’ Benefits and Incurred Losses and LAE | | | 1.9 | | | 2.5 | | | 5.1 | | | 2.0 | | | 16.2 | | | 22.3 | | | 24.5 | | | 23.5 | | | 11.5 | | | 86.5 | |
| Insurance Expenses | | | 2.7 | | | 3.4 | | | 3.1 | | | 2.0 | | | 15.8 | | | 22.4 | | | 20.1 | | | 20.8 | | | 11.2 | | | 79.1 | |
| Adjusted Operating Income (Loss) | | | 1.1 | | | (0.2) | | | (2.3) | | | 2.0 | | | 0.3 | | | 2.1 | | | 1.8 | | | 2.1 | | | 0.6 | | | 6.3 | |
| Income Tax (Expense) Benefit | | | (0.3) | | | — | | | 0.5 | | | (0.4) | | | 0.1 | | | (0.4) | | | (0.4) | | | (0.4) | | | (0.2) | | | (1.1) | |
| Total Product Line Adjusted Net Operating Income (Loss) | | | $ | 0.8 | | | $ | (0.2) | | | $ | (1.8) | | | $ | 1.6 | | | $ | 0.4 | | | $ | 1.7 | | | $ | 1.4 | | | $ | 1.7 | | | $ | 0.4 | | | $ | 5.2 | |
| | | | | | | | | | | | | | | | | | | | | |
Kemper Corporation
Life Insurance Segment
Property Insurance - Results of Operations and Selected Financial Information
(Dollars in Millions)
(Unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Three Months Ended | | Year Ended |
| | | Dec 31,
2023 | | Sep 30, 2023 | | | Jun 30, 2023 | | Mar 31, 2023 | | Dec 31, 2022 | | Sep 30, 2022 | | Jun 30, 2022 | | Mar 31, 2022 | | Dec 31,
2023 | | Dec 31,
2022 |
| Results of Operations | | | | | | | | | | | | | | | | | | | | | |
| Earned Premiums | | $ | 11.1 | | | $ | 11.4 | | | | $ | 11.6 | | | $ | 11.2 | | | $ | 12.2 | | | $ | 11.9 | | | $ | 12.1 | | | $ | 14.3 | | | $ | 45.3 | | | $ | 50.5 | |
| Net Investment Income | | 0.4 | | | 0.4 | | | | 0.5 | | | 0.3 | | | 0.8 | | | 0.8 | | | 0.8 | | | 0.8 | | | 1.6 | | | 3.2 | |
| Change in Value of Alternative Energy Partnership Investments | | — | | | — | | | | — | | | — | | | — | | | — | | | — | | | (0.3) | | | — | | | (0.3) | |
| | | | | | | | | | | | | | | | | | | | | |
| Total Revenues | | 11.5 | | | 11.8 | | | | 12.1 | | | 11.5 | | | 13.0 | | | 12.7 | | | 12.9 | | | 14.8 | | | 46.9 | | | 53.4 | |
| Incurred Losses and LAE related to: | | | | | | | | | | | | | | | | | | | | | |
| Current Year: | | | | | | | | | | | | | | | | | | | | | |
| Non-catastrophe Losses and LAE | | 2.3 | | | 2.2 | | | | 2.2 | | | 2.2 | | | 2.0 | | | 2.8 | | | 3.6 | | | 4.1 | | | 8.9 | | | 12.5 | |
| Catastrophe Losses and LAE | | 0.3 | | | 0.5 | | | | 0.8 | | | 0.6 | | | (0.6) | | | 1.4 | | | 0.6 | | | 0.4 | | | 2.2 | | | 1.8 | |
| Prior Years: | | | | | | | | | | | | | | | | | | | | | |
| Non-catastrophe Losses and LAE | | 0.2 | | | 0.1 | | | | 0.2 | | | 0.8 | | | 0.1 | | | 0.1 | | | 0.5 | | | 0.6 | | | 1.3 | | | 1.3 | |
| Catastrophe Losses and LAE | | 0.3 | | | 0.3 | | | | — | | | 0.2 | | | — | | | 0.4 | | | 0.2 | | | 0.9 | | | 0.8 | | | 1.5 | |
| Total Incurred Losses and LAE | | 3.1 | | | 3.1 | | | | 3.2 | | | 3.8 | | | 1.5 | | | 4.7 | | | 4.9 | | | 6.0 | | | 13.2 | | | 17.1 | |
| Insurance Expenses | | 5.6 | | | 6.1 | | | | 5.8 | | | 6.1 | | | 6.4 | | | 6.6 | | | 6.6 | | | 6.9 | | | 23.6 | | | 26.5 | |
| Adjusted Operating Income | | 2.8 | | | 2.6 | | | | 3.1 | | | 1.6 | | | 5.1 | | | 1.4 | | | 1.4 | | | 1.9 | | | 10.1 | | | 9.8 | |
| Income Tax Expense | | (0.5) | | | (0.6) | | | | (0.7) | | | (0.3) | | | (1.0) | | | (0.3) | | | (0.3) | | | (0.3) | | | (2.1) | | | (1.9) | |
| Total Product Line Adjusted Net Operating Income | | $ | 2.3 | | | $ | 2.0 | | | | $ | 2.4 | | | $ | 1.3 | | | $ | 4.1 | | | $ | 1.1 | | | $ | 1.1 | | | $ | 1.6 | | | $ | 8.0 | | | $ | 7.9 | |
| Ratios Based On Earned Premiums | | | | | | | | | | | | | | | | | | | | | |
| Current Year Non-catastrophe Losses and LAE Ratio | | 20.7 | % | | 19.3 | % | | | 19.0 | % | | 19.6 | % | | 16.4 | % | | 23.5 | % | | 29.7 | % | | 28.7 | % | | 19.5 | % | | 24.7 | % |
| Current Year Catastrophe Losses and LAE Ratio | | 2.7 | | | 4.4 | | | | 6.9 | | | 5.4 | | | (4.9) | | | 11.8 | | | 5.0 | | | 2.8 | | | 4.9 | | | 3.6 | |
| Prior Years Non-catastrophe Losses and LAE Ratio | | 1.8 | | | 0.9 | | | | 1.7 | | | 7.1 | | | 0.8 | | | 0.8 | | | 4.1 | | | 4.2 | | | 2.9 | | | 2.6 | |
| Prior Years Catastrophe Losses and LAE Ratio | | 2.7 | | | 2.6 | | | | — | | | 1.8 | | | — | | | 3.4 | | | 1.7 | | | 6.3 | | | 1.8 | | | 3.0 | |
| Total Incurred Loss and LAE Ratio | | 27.9 | | | 27.2 | | | | 27.6 | | | 33.9 | | | 12.3 | | | 39.5 | | | 40.5 | | | 42.0 | | | 29.1 | | | 33.9 | |
| Insurance Expense Ratio | | 50.5 | | | 53.5 | | | | 50.0 | | | 54.5 | | | 52.5 | | | 55.5 | | | 54.5 | | | 48.3 | | | 52.1 | | | 52.5 | |
| Combined Ratio | | 78.4 | % | | 80.7 | % | | | 77.6 | % | | 88.4 | % | | 64.8 | % | | 95.0 | % | | 95.0 | % | | 90.3 | % | | 81.2 | % | | 86.4 | % |
Underlying Combined Ratio 1 | | | | | | | | | | | | | | | | | | | | | |
| Current Year Non-catastrophe Losses and LAE Ratio | | 20.7 | % | | 19.3 | % | | | 19.0 | % | | 19.6 | % | | 16.4 | % | | 23.5 | % | | 29.7 | % | | 28.7 | % | | 19.5 | % | | 24.7 | % |
| Insurance Expense Ratio | | 50.5 | | | 53.5 | | | | 50.0 | | | 54.5 | | | 52.5 | | | 55.5 | | | 54.5 | | | 48.3 | | | 52.1 | | | 52.5 | |
| Underlying Combined Ratio | | 71.2 | % | | 72.8 | % | | | 69.0 | % | | 74.1 | % | | 68.9 | % | | 79.0 | % | | 84.2 | % | | 77.0 | % | | 71.6 | % | | 77.2 | % |
| Non-GAAP Measure Reconciliation | | | | | | | | | | | | | | | | | | | | | |
| Combined Ratio | | 78.4 | % | | 80.7 | % | | | 77.6 | % | | 88.4 | % | | 64.8 | % | | 95.0 | % | | 95.0 | % | | 90.3 | % | | 81.2 | % | | 86.4 | % |
| Less: | | | | | | | | | | | | | | | | | | | | | |
| Current Year Catastrophe Losses and LAE Ratio | | 2.7 | | | 4.4 | | | | 6.9 | | | 5.4 | | | (4.9) | | | 11.8 | | | 5.0 | | | 2.8 | | | 4.9 | | | 3.6 | |
| Prior Years Non-catastrophe Losses and LAE Ratio | | 1.8 | | | 0.9 | | | | 1.7 | | | 7.1 | | | 0.8 | | | 0.8 | | | 4.1 | | | 4.2 | | | 2.9 | | | 2.6 | |
| Prior Years Catastrophe Losses and LAE Ratio | | 2.7 | | | 2.6 | | | | — | | | 1.8 | | | — | | | 3.4 | | | 1.7 | | | 6.3 | | | 1.8 | | | 3.0 | |
| Underlying Combined Ratio | | 71.2 | % | | 72.8 | % | | | 69.0 | % | | 74.1 | % | | 68.9 | % | | 79.0 | % | | 84.2 | % | | 77.0 | % | | 71.6 | % | | 77.2 | % |
1 Underlying Combined Ratio is a non-GAAP measure, which is computed as the difference between three operating ratios: the combined ratio, the effect of catastrophes (excluding development of prior-year catastrophes) on the combined ratio and the effect of prior-year reserve development at the reporting date (including development on prior-year catastrophes) on the combined ratio. |
Kemper Corporation
Expenses
(Dollars in Millions)
(Unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Three Months Ended | | Year Ended |
| | | Dec 31,
2023 | | Sep 30, 2023 | | | Jun 30, 2023 | | Mar 31, 2023 | | Dec 31, 2022 | | Sep 30, 2022 | | Jun 30, 2022 | | Mar 31, 2022 | | Dec 31,
2023 | | Dec 31,
2022 |
| Insurance Expenses: | | | | | | | | | | | | | | | | | | | | | |
| Commissions | | $ | 121.2 | | | $ | 130.8 | | | | $ | 165.3 | | | $ | 166.9 | | | $ | 165.7 | | | $ | 176.3 | | | $ | 190.9 | | | $ | 191.9 | | | $ | 584.2 | | | $ | 724.8 | |
| General Expenses | | 88.2 | | | 85.9 | | | | 74.5 | | | 94.2 | | | 86.4 | | | 93.5 | | | 91.4 | | | 87.1 | | | 342.8 | | | 358.4 | |
| Premium Taxes | | 17.7 | | | 17.8 | | | | 20.5 | | | 23.6 | | | 25.3 | | | 23.6 | | | 25.2 | | | 25.4 | | | 79.6 | | | 99.5 | |
| Total Costs Incurred | | 227.1 | | | 234.5 | | | | 260.3 | | | 284.7 | | | 277.4 | | | 293.4 | | | 307.5 | | | 304.4 | | | 1,006.6 | | | 1,182.7 | |
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| Net Policy Acquisition Costs Amortized (Deferred) | | 30.4 | | | 24.0 | | | | 5.3 | | | (15.9) | | | 9.9 | | | 6.5 | | | (0.5) | | | (1.7) | | | 43.8 | | | 14.2 | |
| Amortization of Valuation of Business Acquired ("VOBA") | | 0.5 | | | 0.5 | | | | 0.5 | | | 0.5 | | | 0.7 | | | 0.6 | | | 0.7 | | | 2.1 | | | 2.0 | | | 4.1 | |
| | | | | | | | | | | | | | | | | | | | | |
| Insurance Expenses | | $ | 258.0 | | | $ | 259.0 | | | | $ | 266.1 | | | $ | 269.3 | | | $ | 288.0 | | | $ | 300.5 | | | $ | 307.7 | | | $ | 304.8 | | | $ | 1,052.4 | | | $ | 1,201.0 | |
| Loss from Early Extinguishment of Debt | | — | | | — | | | | — | | | — | | | — | | | — | | | — | | | 3.7 | | | — | | | 3.7 | |
| Interest and Other Expenses: | | | | | | | | | | | | | | | | | | | | | |
| Interest Expense | | $ | 13.9 | | | $ | 14.1 | | | | $ | 14.0 | | | $ | 14.1 | | | $ | 13.7 | | | $ | 14.3 | | | $ | 14.0 | | | $ | 12.7 | | | $ | 56.1 | | | $ | 54.7 | |
| Other Expenses: | | | | | | | | | | | | | | | | | | | | | |
| Acquisition and Disposition Related Transaction, Integration, Restructuring and Other Costs | | 18.4 | | | 43.3 | | | | 29.5 | | | 29.1 | | | 35.6 | | | 12.7 | | | 9.9 | | | 4.7 | | | 120.3 | | | 62.9 | |
| Pension Settlement Expense | | — | | | 70.2 | | | | — | | | — | | | — | | | — | | | — | | | — | | | 70.2 | | | — | |
| | | | | | | | | | | | | | | | | | | | | |
| Other | | 25.3 | | | 28.4 | | | | 34.8 | | | 34.2 | | | 37.2 | | | 36.5 | | | 29.6 | | | 36.7 | | | 122.7 | | | 140.0 | |
| Other Expenses | | 43.7 | | | 141.9 | | | | 64.3 | | | 63.3 | | | 72.8 | | | 49.2 | | | 39.5 | | | 41.4 | | | 313.2 | | | 202.9 | |
| Interest and Other Expenses | | 57.6 | | | 156.0 | | | | 78.3 | | | 77.4 | | | 86.5 | | | 63.5 | | | 53.5 | | | 54.1 | | | 369.3 | | | 257.6 | |
| Goodwill Impairment | | — | | | — | | | | 49.6 | | | — | | | — | | | — | | | — | | | — | | | 49.6 | | | — | |
| Total Expenses | | $ | 315.6 | | | $ | 415.0 | | | | $ | 394.0 | | | $ | 346.7 | | | $ | 374.5 | | | $ | 364.0 | | | $ | 361.2 | | | $ | 362.6 | | | $ | 1,471.3 | | | $ | 1,462.3 | |
Kemper Corporation
Details of Investment Performance
(Dollars in Millions)
(Unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Three Months Ended | | Year Ended |
| | | Dec 31,
2023 | | Sep 30, 2023 | | | Jun 30, 2023 | | Mar 31, 2023 | | Dec 31, 2022 | | Sep 30, 2022 | | Jun 30, 2022 | | Mar 31, 2022 | | Dec 31,
2023 | | Dec 31,
2022 |
| Net Investment Income | | | | | | | | | | | | | | | | | | | | | |
| Interest on Fixed Income Securities | | $ | 86.2 | | | $ | 86.5 | | | | $ | 87.1 | | | $ | 86.2 | | | $ | 81.7 | | | $ | 76.9 | | | $ | 72.8 | | | $ | 68.7 | | | $ | 346.0 | | | $ | 300.1 | |
| Dividends on Equity Securities Excluding Alternative Investments | | 1.0 | | | 1.2 | | | | 1.2 | | | 1.0 | | | 2.0 | | | 1.1 | | | 1.7 | | | 1.5 | | | 4.4 | | | 6.3 | |
| Alternative Investments: | | | | | | | | | | | | | | | | | | | | | |
| Equity Method Limited Liability Investments | | 2.3 | | | 4.3 | | | | 2.8 | | | 1.1 | | | 3.3 | | | (0.6) | | | 15.3 | | | 13.3 | | | 10.5 | | | 31.3 | |
| | | | | | | | | | | | | | | | | | | | | |
| Limited Liability Investments Included in Equity Securities | | 4.7 | | | 5.4 | | | | 6.3 | | | 2.6 | | | 7.2 | | | 8.8 | | | 18.5 | | | 7.6 | | | 19.0 | | | 42.1 | |
| Total Alternative Investments | | 7.0 | | | 9.7 | | | | 9.1 | | | 3.7 | | | 10.5 | | | 8.2 | | | 33.8 | | | 20.9 | | | 29.5 | | | 73.4 | |
| Short-term Investments | | 6.1 | | | 6.0 | | | | 3.6 | | | 2.3 | | | 2.3 | | | 1.1 | | | 0.2 | | | 0.1 | | | 18.0 | | | 3.7 | |
| Loans to Policyholders | | 5.3 | | | 5.1 | | | | 5.1 | | | 5.4 | | | 5.2 | | | 5.5 | | | 5.3 | | | 5.5 | | | 20.9 | | | 21.5 | |
| Real Estate | | 2.3 | | | 2.3 | | | | 1.9 | | | 2.4 | | | 2.5 | | | 3.1 | | | 2.3 | | | 2.2 | | | 8.9 | | | 10.1 | |
Company-Owned Life Insurance | | 6.6 | | | 6.4 | | | | 7.4 | | | 8.8 | | | 9.9 | | | 9.9 | | | 9.8 | | | 8.3 | | | 29.2 | | | 37.9 | |
| Other | | 2.8 | | | 1.8 | | | | 5.3 | | | 3.0 | | | 2.6 | | | 1.7 | | | 1.7 | | | 1.7 | | | 12.9 | | | 7.7 | |
| Total Investment Income | | 117.3 | | | 119.0 | | | | 120.7 | | | 112.8 | | | 116.7 | | | 107.5 | | | 127.6 | | | 108.9 | | | 469.8 | | | 460.7 | |
| Investment Expenses: | | | | | | | | | | | | | | | | | | | | | |
| Real Estate | | 2.8 | | | 1.7 | | | | 2.2 | | | 2.1 | | | 2.1 | | | 2.3 | | | 1.0 | | | 2.5 | | | 8.8 | | | 7.9 | |
| Other Investment Expenses | | 9.9 | | | 10.3 | | | | 12.2 | | | 8.9 | | | 8.3 | | | 7.4 | | | 8.1 | | | 6.4 | | | 41.3 | | | 30.2 | |
| Total Investment Expenses | | 12.7 | | | 12.0 | | | | 14.4 | | | 11.0 | | | 10.4 | | | 9.7 | | | 9.1 | | | 8.9 | | | 50.1 | | | 38.1 | |
| Net Investment Income | | $ | 104.6 | | | $ | 107.0 | | | | $ | 106.3 | | | $ | 101.8 | | | $ | 106.3 | | | $ | 97.8 | | | $ | 118.5 | | | $ | 100.0 | | | $ | 419.7 | | | $ | 422.6 | |
| Net Realized Investment Gains (Losses) | | | | | | | | | | | | | | | | | | | | | |
| Fixed Maturities: | | | | | | | | | | | | | | | | | | | | | |
| Gains on Sales | | $ | 3.6 | | | $ | 0.8 | | | | $ | 0.4 | | | $ | 1.1 | | | 3.6 | | | $ | 14.2 | | | $ | 13.4 | | | $ | 0.4 | | | $ | 5.9 | | | $ | 31.6 | |
| Losses on Sales | | (0.4) | | | (1.2) | | | | (6.0) | | | (3.3) | | | (4.4) | | | (23.9) | | | (2.8) | | | (0.8) | | | (10.9) | | | (31.9) | |
| Gains (Losses) on Hedging Activity | | 17.8 | | | (29.4) | | | | (8.7) | | | 8.4 | | | 1.7 | | | (0.3) | | | 0.3 | | | — | | | (11.9) | | | 1.7 | |
| Equity Securities: | | | | | | | | | | | | | | | | | | | | | |
| Gains on Sales | | — | | | 0.5 | | | | 0.1 | | | — | | | 3.1 | | | 4.5 | | | 0.1 | | | 2.0 | | | 0.6 | | | 9.7 | |
| Losses on Sales | | (1.3) | | | (1.1) | | | | (0.1) | | | — | | | (0.1) | | | (6.6) | | | — | | | (0.1) | | | (2.5) | | | (6.8) | |
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| Other Investments: | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| Gains on Sales | | — | | | — | | | | — | | | 0.2 | | | — | | | — | | | — | | | — | | | 0.2 | | | — | |
| Losses on Sales | | — | | | 0.1 | | | | (0.1) | | | — | | | — | | | — | | | — | | | — | | | — | | | — | |
| | | | | | | | | | | | | | | | | | | | | |
| Net Realized Investment Gains (Losses) | | $ | 19.7 | | | $ | (30.3) | | | | $ | (14.4) | | | $ | 6.4 | | | $ | 3.9 | | | $ | (12.1) | | | $ | 11.0 | | | $ | 1.5 | | | $ | (18.6) | | | $ | 4.3 | |
| Net Impairment Losses Recognized in Earnings | | | | | | | | | | | | | | | | | | | | | |
| Fixed Maturities | | $ | (0.7) | | | $ | (2.0) | | | | $ | — | | | $ | 2.1 | | | $ | (3.7) | | | $ | (8.3) | | | $ | (4.9) | | | $ | (8.9) | | | $ | (0.6) | | | $ | (25.8) | |
| Equity Securities | | (0.5) | | | — | | | | — | | | — | | | — | | | — | | | — | | | — | | | (0.5) | | | — | |
| | | | | | | | | | | | | | | | | | | | | |
| Net Impairment Losses Recognized in Earnings | | $ | (1.2) | | | $ | (2.0) | | | | $ | — | | | $ | 2.1 | | | $ | (3.7) | | | $ | (8.3) | | | $ | (4.9) | | | $ | (8.9) | | | $ | (1.1) | | | $ | (25.8) | |
| | | | | | | | | | | | | | | | | | | | | |
Kemper Corporation
Details of Invested Assets
(Dollars in Millions)
(Unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Dec 31, 2023 | | Dec 31, 2022 | | Dec 31, 2021 |
| | | Carrying
Value | | Percent of Total1 | | Carrying
Value | | Percent of Total1 | | Carrying
Value | | Percent of Total1 |
| Fixed Maturities Reported at Fair Value: | | | | | | | | | | | | |
| U.S. Government and Government Agencies and Authorities | | $ | 511.5 | | | 5.7 | % | | $ | 528.0 | | | 6.0 | % | | $ | 637.4 | | | 6.1 | % |
| States and Political Subdivisions | | 1,401.9 | | | 15.7 | | | 1,568.9 | | | 17.8 | | | 1,890.1 | | | 18.2 | |
| Foreign Governments | | 3.8 | | | — | | | 4.1 | | | — | | | 5.5 | | | 0.1 | |
| Corporate Securities: | | | | | | | | | | | | |
| Bonds and Notes | | 3,690.8 | | | 41.4 | | | 3,539.4 | | | 40.4 | | | 4,386.9 | | | 42.2 | |
| Redeemable Preferred Stocks | | 8.3 | | | 0.1 | | | 8.0 | | | 0.1 | | | 7.4 | | | 0.1 | |
| Collateralized Loan Obligations | | 949.8 | | | 10.7 | | | 953.9 | | | 10.9 | | | 752.1 | | | 7.2 | |
| Other Mortgage- and Asset-backed | | 315.8 | | | 3.5 | | | 292.5 | | | 3.3 | | | 307.5 | | | 3.0 | |
| Total Fixed Maturities Reported at Fair Value | | 6,881.9 | | | 77.1 | | | 6,894.8 | | | 78.5 | | | 7,986.9 | | | 76.9 | |
| Equity Securities Reported at Fair Value: | | | | | | | | | | | | |
| Preferred Stocks | | 25.5 | | | 0.3 | | | 39.8 | | | 0.5 | | | 51.8 | | | 0.5 | |
| Common Stocks | | 1.2 | | | — | | | 2.1 | | | — | | | 21.8 | | | 0.2 | |
| Other Equity Interests: | | | | | | | | | | | | |
| Exchange Traded Funds | | 7.7 | | | 0.1 | | | 12.2 | | | 0.1 | | | 432.0 | | | 4.2 | |
| Limited Liability Companies and Limited Partnerships | | 191.4 | | | 2.1 | | | 189.1 | | | 2.2 | | | 325.0 | | | 3.1 | |
| Total Equity Securities Reported at Fair Value | | 225.8 | | | 2.5 | | | 243.2 | | | 2.8 | | | 830.6 | | | 8.0 | |
| Equity Method Limited Liability Investments | | 221.7 | | | 2.5 | | | 217.0 | | | 2.5 | | | 241.9 | | | 2.3 | |
| Alternative Energy Partnership Investments | | 17.3 | | | 0.2 | | | 16.3 | | | 0.2 | | | 39.6 | | | 0.4 | |
| | | | | | | | | | | | |
| Short-term Investments at Cost which Approximates Fair Value | | 520.9 | | | 5.9 | | | 278.4 | | | 3.2 | | | 284.1 | | | 2.7 | |
| Company Owned Life Insurance | | 513.5 | | | 5.8 | | | 586.5 | | | 6.7 | | | 448.1 | | | 4.3 | |
| Loans to Policyholders | | 281.2 | | | 3.2 | | | 283.4 | | | 3.2 | | | 286.2 | | | 2.8 | |
| Other Investments: | | | | | | | | | | | | |
| Equity Securities Reported at Modified Cost | | 32.6 | | | 0.4 | | | 38.4 | | | 0.4 | | | 32.3 | | | 0.3 | |
| Convertible Securities at Fair Value | | — | | | — | | | 43.3 | | | 0.5 | | | 46.4 | | | 0.5 | |
| Real Estate at Depreciated Cost | | 94.7 | | | 1.1 | | | 93.6 | | | 1.1 | | | 94.0 | | | 0.9 | |
| Mortgage Loans | | 99.8 | | | 1.1 | | | 91.1 | | | 1.0 | | | 96.8 | | | 0.9 | |
| | | | | | | | | | | | |
| Other | | 14.8 | | | 0.2 | | | 3.5 | | | — | | | 0.5 | | | — | |
| Total Other Investments | | 241.9 | | | 2.8 | | | 269.9 | | | 3.0 | | | 270.0 | | | 2.6 | |
| Total Investments | | $ | 8,904.2 | | | 100.0 | % | | $ | 8,789.5 | | | 100.0 | % | | $ | 10,387.4 | | | 100.0 | % |
1 Sum of percentages for individual lines may not equal subtotals and grand total due to rounding. | | | | | | |
|
Kemper Corporation
Details of Invested Assets (continued)
(Dollars in Millions)
(Unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Dec 31, 2023 | | Dec 31, 2022 | | Dec 31, 2021 |
| | | Carrying
Value | | Percent of Total1 | | Carrying
Value | | Percent of Total1 | | Carrying
Value | | Percent of Total1 |
S&P Equivalent Rating for Fixed Maturities | | | | | | | | | | | | |
AAA, AA, A | | $ | 4,962.0 | | | 72.1 | % | | $ | 4,896.4 | | | 71.0 | % | | $ | 5,351.6 | | | 67.0 | % |
BBB | | 1,657.3 | | | 24.1 | | | 1,687.4 | | | 24.5 | | | 2,215.1 | | | 27.7 | |
BB, B | | 204.4 | | | 3.0 | | | 239.7 | | | 3.5 | | | 331.0 | | | 4.2 | |
CCC or Lower | | 58.2 | | | 0.8 | | | 71.3 | | | 1.0 | | | 89.2 | | | 1.1 | |
Total Investments in Fixed Maturities | | $ | 6,881.9 | | | 100.0 | % | | $ | 6,894.8 | | | 100.0 | % | | $ | 7,986.9 | | | 100.0 | % |
Duration (in Years) | | | | | | | | | | | | |
Total Investments in Fixed Maturities | | 8.1 | | | | | 8.2 | | | | | 8.5 | | | |
| | | | | | |
|
Kemper Corporation
Investment Concentration
(Dollars in Millions)
(Unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Dec 31, 2023 | | Dec 31, 2022 | | Dec 31, 2021 |
| Fair Value of Non-governmental Fixed Maturities by Industry | | Amount | | Percent
of Total
Investments | | Amount | | Percent
of Total
Investments | | Amount | | Percent
of Total
Investments |
| Finance, Insurance and Real Estate | | $ | 2,070.5 | | | 23.3 | % | | $ | 2,007.5 | | | 22.8 | % | | $ | 1,996.7 | | | 19.2 | % |
| Manufacturing | | 1,077.6 | | | 12.1 | | | 1,085.9 | | | 12.4 | | | 1,571.0 | | | 15.1 | |
| Transportation, Communication and Utilities | | 807.3 | | | 9.1 | | | 733.7 | | | 8.3 | | | 815.8 | | | 7.9 | |
| Services | | 639.4 | | | 7.2 | | | 602.4 | | | 6.9 | | | 617.5 | | | 5.9 | |
| Mining | | 174.3 | | | 2.0 | | | 173.3 | | | 2.0 | | | 254.3 | | | 2.4 | |
| Retail Trade | | 156.0 | | | 1.8 | | | 165.1 | | | 1.9 | | | 171.4 | | | 1.7 | |
| Construction | | 4.4 | | | — | | | 11.7 | | | 0.1 | | | 13.1 | | | 0.1 | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| Other | | 35.2 | | | 0.4 | | | 14.2 | | | 0.2 | | | 14.1 | | | 0.1 | |
| Total Fair Value of Non-governmental Fixed Maturities | | $ | 4,964.7 | | | 55.9 | % | | $ | 4,793.8 | | | 54.6 | % | | $ | 5,453.9 | | | 52.4 | % |
| | | | | | | | | | | | | | | | | | | | |
| | | | Dec 31, 2023 |
Ten Largest Investment Exposures 1 | | Fair
Value | | Percent
of Total
Investments |
| Fixed Maturities: | | | | |
| States including their Political Subdivisions: | | | | |
| California | | $ | 137.4 | | | 1.5 | % |
| Texas | | 116.6 | | | 1.3 | |
| Michigan | | 83.7 | | | 0.9 | |
| New York | | 76.5 | | | 0.9 | |
| Georgia | | 73.7 | | | 0.8 | |
| Louisiana | | 62.4 | | | 0.7 | |
| Pennsylvania | | 57.9 | | | 0.7 | |
| Florida | | 57.6 | | | 0.6 | |
| Colorado | | 49.1 | | | 0.6 | |
| | | | |
| Missouri | | 42.1 | | | 0.5 | |
| | | | |
| | | | |
| Total | | $ | 757.0 | | | 8.5 | % |
1Excluding Investments in U.S. Government and Government Agencies and Authorities at December 31, 2023.
Kemper Corporation
Municipal Bond Securities
(Dollars in Millions)
(Unaudited) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Dec 31, 2023 |
| | State
General
Obligation | | Political
Subdivision
General
Obligation | | Revenue | | Total Fair
Value | | Percent of Total Muni Bond1 | | Percent of Total Investments1 |
| California | | $ | 8.6 | | | $ | 128.7 | | | $ | — | | | $ | 137.3 | | | 9.8 | % | | 1.5 | % |
| Texas | | 10.2 | | | 103.0 | | | 3.4 | | | 116.6 | | | 8.3 | | | 1.3 | |
| Michigan | | — | | | 73.5 | | | 10.1 | | | 83.6 | | | 6.0 | | | 0.9 | |
| New York | | 11.4 | | | 65.1 | | | — | | | 76.5 | | | 5.5 | | | 0.9 | |
| Georgia | | 4.0 | | | 65.2 | | | 4.4 | | | 73.6 | | | 5.3 | | | 0.8 | |
| Louisiana | | 4.3 | | | 26.2 | | | 31.8 | | | 62.3 | | | 4.4 | | | 0.7 | |
| Pennsylvania | | 3.1 | | | 54.9 | | | — | | | 58.0 | | | 4.1 | | | 0.7 | |
| Florida | | — | | | 57.6 | | | — | | | 57.6 | | | 4.1 | | | 0.6 | |
| Colorado | | — | | | 49.1 | | | — | | | 49.1 | | | 3.5 | | | 0.6 | |
| Missouri | | 1.1 | | | 41.0 | | | — | | | 42.1 | | | 3.0 | | | 0.5 | |
| Washington | | 1.3 | | | 28.2 | | | 5.4 | | | 34.9 | | | 2.5 | | | 0.4 | |
| New Mexico | | — | | | 34.2 | | | — | | | 34.2 | | | 2.5 | | | 0.4 | |
| Virginia | | — | | | 26.8 | | | 6.2 | | | 33.0 | | | 2.4 | | | 0.4 | |
| Massachusetts | | — | | | 27.5 | | | 5.2 | | | 32.7 | | | 2.3 | | | 0.4 | |
| Oregon | | 2.3 | | | 18.8 | | | 11.4 | | | 32.5 | | | 2.3 | | | 0.4 | |
| Illinois | | 0.6 | | | 31.1 | | | — | | | 31.7 | | | 2.3 | | | 0.4 | |
| Minnesota | | 1.1 | | | 28.8 | | | — | | | 29.9 | | | 2.1 | | | 0.3 | |
| Maryland | | — | | | 29.2 | | | — | | | 29.2 | | | 2.1 | | | 0.3 | |
| Ohio | | — | | | 28.7 | | | — | | | 28.7 | | | 2.0 | | | 0.3 | |
| Tennessee | | 3.3 | | | 20.2 | | | — | | | 23.5 | | | 1.7 | | | 0.3 | |
| Oklahoma | | — | | | 23.2 | | | — | | | 23.2 | | | 1.7 | | | 0.3 | |
| Indiana | | — | | | 22.6 | | | — | | | 22.6 | | | 1.6 | | | 0.3 | |
| Mississippi | | — | | | 11.0 | | | 11.1 | | | 22.1 | | | 1.6 | | | 0.2 | |
| Connecticut | | — | | | 16.9 | | | 2.7 | | | 19.6 | | | 1.4 | | | 0.2 | |
| Rhode Island | | 1.6 | | | 17.9 | | | — | | | 19.5 | | | 1.4 | | | 0.2 | |
| North Carolina | | 1.7 | | | 17.5 | | | — | | | 19.2 | | | 1.4 | | | 0.2 | |
| District of Columbia | | — | | | 15.9 | | | 2.8 | | | 18.7 | | | 1.3 | | | 0.2 | |
| New Hampshire | | 0.4 | | | 18.0 | | | — | | | 18.4 | | | 1.3 | | | 0.2 | |
| Nebraska | | 6.0 | | | 9.7 | | | — | | | 15.7 | | | 1.1 | | | 0.2 | |
| Arizona | | — | | | 14.3 | | | — | | | 14.3 | | | 1.0 | | | 0.2 | |
| South Carolina | | — | | | 13.9 | | | — | | | 13.9 | | | 1.0 | | | 0.2 | |
| Kentucky | | — | | | 13.7 | | | — | | | 13.7 | | | 1.0 | | | 0.2 | |
| Utah | | — | | | 13.3 | | | — | | | 13.3 | | | 0.9 | | | 0.1 | |
| North Dakota | | — | | | 13.0 | | | — | | | 13.0 | | | 0.9 | | | 0.1 | |
| Alabama | | — | | | 12.5 | | | — | | | 12.5 | | | 0.9 | | | 0.1 | |
| Iowa | | — | | | 11.9 | | | — | | | 11.9 | | | 0.8 | | | 0.1 | |
| Hawaii | | 3.4 | | | 2.8 | | | 2.9 | | | 9.1 | | | 0.6 | | | 0.1 | |
| Maine | | — | | | 8.5 | | | — | | | 8.5 | | | 0.6 | | | 0.1 | |
| South Dakota | | — | | | 8.3 | | | — | | | 8.3 | | | 0.6 | | | 0.1 | |
| All Other States | | 2.5 | | | 32.5 | | | 2.4 | | | 37.4 | | | 2.7 | | | 0.4 | |
| Total | | $ | 66.9 | | | $ | 1,235.2 | | | $ | 99.8 | | | $ | 1,401.9 | | | 100.0 | % | | 15.8 | % |
1 Sum of percentages for individual lines may not equal total due to rounding. | | | | | | |
Kemper Corporation
Investments in Limited Liability
Companies and Limited Partnerships
(Dollars in Millions)
(Unaudited)
| | | | | | | | | | | | | | | | | | | | |
| | | Unfunded
Commitment | | Reported Value |
| Asset Class | | Dec 31,
2023 | | Dec 31,
2023 | | Dec 31,
2022 |
| Reported as Equity Method Limited Liability Investments: | | | | | | |
| Mezzanine Debt | | $ | 43.1 | | | $ | 125.4 | | | $ | 114.3 | |
| Real Estate | | — | | | 41.9 | | | 43.3 | |
| Senior Debt | | 39.9 | | | 19.0 | | | 21.6 | |
| Leveraged Buyout | | 0.6 | | | 8.6 | | | 8.9 | |
| Distressed Debt | | — | | | 7.9 | | | 9.4 | |
| Secondary Transactions | | 1.7 | | | 7.9 | | | 9.3 | |
| Growth Equity | | — | | | 1.2 | | | 1.2 | |
| Hedge Fund | | — | | | 0.1 | | | 0.5 | |
| Other | | — | | | 9.7 | | | 8.5 | |
| Total Equity Method Limited Liability Investments | | 85.3 | | | 221.7 | | | 217.0 | |
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| Alternative Energy Partnership Investments | | — | | | 17.3 | | | 16.3 | |
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| Reported as Other Equity Interests at Fair Value: | | | | | | |
| Mezzanine Debt | | 67.0 | | | 124.0 | | | 106.0 | |
| Senior Debt | | 10.6 | | | 24.8 | | | 21.9 | |
| Leveraged Buyout | | 10.0 | | | 19.0 | | | 21.6 | |
| Distressed Debt | | 13.0 | | | 12.4 | | | 12.5 | |
| Growth Equity | | 6.5 | | | 6.4 | | | 5.4 | |
| Secondary Transactions | | 3.1 | | | 2.8 | | | 3.5 | |
| Hedge Funds | | — | | | 1.9 | | | 18.1 | |
| Real Estate | | 0.2 | | | 0.1 | | | — | |
| Other | | — | | | — | | | 0.1 | |
| Total Reported as Other Equity Interests at Fair Value | | 110.4 | | | 191.4 | | | 189.1 | |
| Reported as Other Equity Interests at Modified Cost: | | | | | | |
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| Other | | — | | | 4.8 | | | 8.3 | |
| Total Reported as Other Equity Interests at Modified Cost | | — | | | 4.8 | | | 8.3 | |
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| Total Investments in Limited Liability Companies and Limited Partnerships | | $ | 195.7 | | | $ | 435.2 | | | $ | 430.7 | |
Kemper Corporation
Definitions of Non-GAAP Financial Measures
The Company believes that investors’ understanding of Kemper’s performance is enhanced by the disclosure of the following non-GAAP financial measures. The methods for calculating these measures may differ from those used by other companies and therefore comparability may be limited.
Adjusted Consolidated Net Operating Income (Loss) is an after-tax, non-GAAP financial measure and is computed by excluding from Net Income (Loss) attributable to Kemper Corporation the after-tax impact of:
(i) (Loss) Income from Change in Fair Value of Equity and Convertible Securities;
(ii) Net Realized Investment Gains (Losses);
(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 Charges;
(vii) Non-Core Operations; and
(viii) Significant non-recurring or infrequent items that may not be indicative of ongoing operations;
Significant non-recurring items are excluded when (a) the nature of the charge or gain is such that it is reasonably unlikely to recur within two years, and (b) there has been no similar charge or gain within the prior two years. The most directly comparable GAAP financial measure is Net Income (Loss) attributable to Kemper Corporation. There were no applicable significant non-recurring items that the Company excluded from the calculation of Adjusted Consolidated Net Operating Income (Loss) for the three and year ended December 31, 2023 or 2022.
The Company believes that Adjusted Consolidated Net Operating Income (Loss) provides investors with a valuable measure of its ongoing performance because it reveals underlying operational performance trends that otherwise might be less apparent if the items were not excluded. (Loss) Income from Change in Fair Value of Equity and Convertible Securities, Net Realized Investment Gains (Losses) and Impairment Losses related to investments included in the Company’s results may vary significantly between periods and are generally driven by business decisions and external economic developments such as capital market conditions that impact the values of the Company’s investments, the timing of which is unrelated to the insurance underwriting process. Acquisition and Disposition Related Transaction, Integration, Restructuring and Other Costs may vary significantly between periods and are generally driven by the timing of acquisitions and business decisions which are unrelated to the insurance underwriting process. Debt Extinguishment, Pension Settlement and Other Charges relate to (i) loss from early extinguishment of debt, which is driven by the Company’s financing and refinancing decisions and capital needs, as well as external economic developments such as debt market conditions, the timing of which is unrelated to the insurance underwriting process; (ii) settlement of pension plan obligations which are business decisions made by the Company, the timing of which is unrelated to the underwriting process; and (iii) other charges that are non-standard, not part of the ordinary course of business, and unrelated to the insurance underwriting process. Goodwill impairment charges are excluded because they are infrequent and non-recurring charges. Non-Core Operations includes the results of our Preferred Insurance business which we expect to fully exit. These results are excluded because they are irrelevant to our ongoing operations and do not qualify for Discontinued Operations under Generally Accepted Accounting Principles ("GAAP"). Significant non-recurring items are excluded because, by their nature, they are not indicative of the Company’s business or economic trends. The preceding non-GAAP financial measures should not be considered a substitute for the comparable GAAP financial measures, as they do not fully recognize the profitability of the Company’s businesses.
Kemper Corporation
Definitions of Non-GAAP Financial Measures (continued)
A reconciliation of Net Income (Loss) attributable to Kemper Corporation to Adjusted Consolidated Net Operating Income (Loss) is presented below:
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| | | Three Months Ended | | Year Ended |
| Dollars in Millions (Unaudited) | | Dec 31,
2023 | | Sep 30, 2023 | | Jun 30, 2023 | | Mar 31, 2023 | | Dec 31, 2022 | | Sep 30, 2022 | | Jun 30, 2022 | | Mar 31, 2022 | | Dec 31,
2023 | | Dec 31,
2022 |
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| Net Income (Loss) attributable to Kemper Corporation | | $ | 51.4 | | | $ | (146.3) | | | $ | (97.1) | | | $ | (80.1) | | | $ | (53.3) | | | $ | (74.8) | | | $ | (72.2) | | | $ | (86.3) | | | $ | (272.1) | | | $ | (286.6) | |
Less Net (Loss) Income From: | | | | | | | | | | | | | | | | | | | | |
| (Loss) Income from Change in Fair Value of Equity and Convertible Securities | | (1.8) | | | 2.3 | | | 1.9 | | | 1.3 | | | — | | | (8.8) | | | (32.0) | | | (22.3) | | | 3.7 | | | (63.1) | |
| Net Realized Investment Gains (Losses) | | 15.6 | | | (22.9) | | | (12.5) | | | 5.1 | | | 3.1 | | | (9.6) | | | 8.7 | | | 1.2 | | | (14.7) | | | 3.4 | |
| Impairment Losses | | (1.0) | | | (0.8) | | | (0.8) | | | 1.7 | | | (2.9) | | | (6.6) | | | (3.9) | | | (7.0) | | | (0.9) | | | (20.4) | |
| Acquisition and Disposition Related Transaction, Integration, Restructuring and Other Costs | | (14.4) | | | (34.3) | | | (23.3) | | | (23.0) | | | (29.1) | | | (20.7) | | | (7.8) | | | (3.7) | | | (95.0) | | | (61.3) | |
| Debt Extinguishment, Pension Settlement and Other Charges | | — | | | (55.5) | | | — | | | — | | | — | | | — | | | — | | | (2.9) | | | (55.5) | | | (2.9) | |
| Goodwill Impairment Charge | | — | | | — | | | (45.5) | | | — | | | — | | | — | | | — | | | — | | | (45.5) | | | — | |
| Non-Core Operations | | 2.5 | | | (7.3) | | | (2.7) | | | (9.5) | | | (0.9) | | | (2.1) | | | (16.8) | | | (6.1) | | | (17.0) | | | (25.9) | |
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| Adjusted Consolidated Net Operating Income (Loss) | | $ | 50.5 | | | $ | (27.8) | | | $ | (14.2) | | | $ | (55.7) | | | $ | (23.5) | | | $ | (27.0) | | | $ | (20.4) | | | $ | (45.5) | | | $ | (47.2) | | | $ | (116.4) | |
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Adjusted Consolidated Net Operating Income (Loss) Per Unrestricted Share is a non-GAAP financial measure. It is computed by dividing Adjusted Consolidated Net Operating Income (Loss) by the weighted average unrestricted shares outstanding. The most directly comparable GAAP financial measure is Net Income (Loss) attributable to Kemper Corporation Per Unrestricted Share ‐ basic. A reconciliation of Net Income (Loss) attributable to Kemper Corporation Per Unrestricted Share- basic to Adjusted Consolidated Net Operating Income (Loss) Per Unrestricted Share-basic is presented below:
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| | | Three Months Ended | | Year Ended |
| (Unaudited) | | Dec 31,
2023 | | Sep 30, 2023 | | Jun 30, 2023 | | Mar 31, 2023 | | Dec 31, 2022 | | Sep 30, 2022 | | Jun 30, 2022 | | Mar 31, 2022 | | Dec 31,
2023 | | Dec 31,
2022 |
Net Income (Loss) Per Unrestricted Share attributable to Kemper Corporation | | $ | 0.80 | | | $ | (2.28) | | | $ | (1.52) | | | $ | (1.25) | | | $ | (0.84) | | | $ | (1.17) | | | $ | (1.13) | | | $ | (1.36) | | | $ | (4.25) | | | $ | (4.50) | |
Less Net (Loss) Income Per Unrestricted Share From: | | | | | | | | | | | | | | | | | | | | |
| (Loss) Income from Change in Fair Value of Equity and Convertible Securities | | (0.03) | | | 0.04 | | | 0.03 | | | 0.02 | | | — | | | (0.14) | | | (0.50) | | | (0.35) | | | 0.06 | | | (0.99) | |
| Net Realized Investment Gains (Losses) | | 0.24 | | | (0.35) | | | (0.20) | | | 0.08 | | | 0.05 | | | (0.15) | | | 0.13 | | | 0.02 | | | (0.23) | | | 0.05 | |
| Impairment Losses | | (0.01) | | | (0.01) | | | (0.02) | | | 0.03 | | | (0.05) | | | (0.10) | | | (0.06) | | | (0.11) | | | (0.01) | | | (0.32) | |
| Acquisition and Disposition Related Transaction, Integration, Restructuring and Other Costs | | (0.23) | | | (0.54) | | | (0.36) | | | (0.36) | | | (0.46) | | | (0.32) | | | (0.12) | | | (0.06) | | | (1.49) | | | (0.96) | |
| Debt Extinguishment, Pension Settlement and Other Charges | | — | | | (0.87) | | | — | | | — | | | — | | | — | | | — | | | (0.05) | | | (0.87) | | | (0.05) | |
| Goodwill Impairment Charge | | — | | | — | | | (0.71) | | | — | | | — | | | — | | | — | | | — | | | (0.71) | | | — | |
| Non-Core Operations | | 0.04 | | | (0.11) | | | (0.04) | | | (0.15) | | | (0.02) | | | (0.03) | | | (0.26) | | | (0.10) | | | (0.26) | | | (0.41) | |
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| Adjusted Consolidated Net Operating Income (Loss) Per Unrestricted Share | | $ | 0.79 | | | $ | (0.44) | | | $ | (0.22) | | | $ | (0.87) | | | $ | (0.36) | | | $ | (0.43) | | | $ | (0.32) | | | $ | (0.71) | | | $ | (0.74) | | | $ | (1.82) | |
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Kemper Corporation
Definitions of Non-GAAP Financial Measures (continued)
Return on Tangible Shareholders' Equity is a calculation that uses a non-GAAP financial Measure. It is calculated by dividing the period’s net income attributable to Kemper Corporation by the average shareholders’ equity excluding net unrealized gains and losses on fixed maturities, the change in discount rate on future life policyholder benefits and goodwill. Return on Shareholder’s Equity is the most directly comparable GAAP measure. We use this non-GAAP measure to identify and analyze the change in performance attributable to management efforts between periods. The Company believes this non-GAAP financial measure is useful to investors because it eliminates the effect of items that can fluctuate significantly from period to period and are generally driven by economic developments, primarily capital market conditions, the magnitude and timing of which are not influenced by management. The Company believes it enhances understanding and comparability of performance by highlighting underlying business activity and profitability drivers.
A reconciliation of Return on Shareholders’ Equity to Return on Tangible Shareholders' Equity is presented below:
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| | | Three Months Ended | | Year Ended |
| | Dec 31,
2023 | | Sep 30, 2023 | | Jun 30, 2023 | | Mar 31, 2023 | | Dec 31, 2022 | | Sep 30, 2022 | | Jun 30, 2022 | | Mar 31, 2022 | | Dec 31,
2023 | | Dec 31,
2022 |
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| Numerator: | | | | | | | | | | | | | | | | | | | | |
| Annualized Net Income (Loss) Attributable to Kemper Corporation | | $ | 205.6 | | | $ | (585.2) | | | $ | (388.4) | | | $ | (320.4) | | | $ | (213.2) | | | $ | (299.2) | | | $ | (288.8) | | | $ | (345.2) | | | $ | (272.1) | | | $ | (286.6) | |
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| Denominator: | | | | | | | | | | | | | | | | | | | | |
Average Shareholders' Equity1 | | $ | 2,433.3 | | | $ | 2,436.8 | | | $ | 2,579.6 | | | $ | 2,658.8 | | | $ | 2,682.6 | | | $ | 2,769.3 | | | $ | 2,906.7 | | | $ | 3,049.5 | | | $ | 2,539.2 | | | $ | 2,861.6 | |
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Less: Average Net Unrealized Gains and Losses on Fixed Maturities | | 716.9 | | | 770.3 | | | 607.3 | | | 645.5 | | | 749.7 | | | 627.4 | | | 242.9 | | | (244.5) | | | 673.1 | | | 296.6 | |
Less: Average Change in Discount Rate on Future Life Policyholder Benefits | | (286.7) | | | (303.6) | | | (174.3) | | | (197.7) | | | (256.9) | | | (142.1) | | | 197.1 | | | 627.6 | | | (232.6) | | | 145.9 | |
Less: Average Goodwill | | (1,250.7) | | | (1,250.7) | | | (1,275.5) | | | (1,300.3) | | | (1,299.6) | | | (1,305.4) | | | (1,312.0) | | | (1,312.0) | | | (1,270.5) | | | (1,307.0) | |
Average Tangible Shareholders' Equity1 | | $ | 1,612.8 | | | $ | 1,652.8 | | | $ | 1,737.1 | | | $ | 1,806.3 | | | $ | 1,875.8 | | | $ | 1,949.2 | | | $ | 2,034.7 | | | $ | 2,120.6 | | | $ | 1,709.2 | | | $ | 1,997.1 | |
| | | | | | | | | | | | | | | | | | | | |
Return on Shareholders' Equity: | | | | | | | | | | | | | | | | | | | | |
| Return on Shareholders' Equity | | 8.4 | % | | (24.0) | % | | (15.1) | % | | (12.1) | % | | (7.9) | % | | (10.8) | % | | (9.9) | % | | (11.3) | % | | (10.7) | % | | (10.0) | % |
| Return on Tangible Shareholders' Equity | | 12.7 | % | | (35.4) | % | | (22.4) | % | | (17.7) | % | | (11.4) | % | | (15.3) | % | | (14.2) | % | | (16.3) | % | | (15.9) | % | | (14.4) | % |
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1 Average shareholders' equity and average tangible shareholders’ equity for the three months ended is the simple average of the beginning and ending balances for the period. Average shareholders’ equity and average tangible shareholders’ equity on a year-to-date basis is the (a) the sum of the balance at the beginning of the year and the ending balance for each quarter within that year divided by (b) the number of quarters in the period presented plus one. |
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Underlying Combined Ratio is a non-GAAP financial measure. It is computed by adding the Current Year Non-catastrophe Losses and LAE Ratio with the Insurance Expense Ratio. The most directly comparable GAAP financial measure is the Combined Ratio, which is computed by adding Total Incurred Losses and LAE Ratio, including the impact of catastrophe losses and loss and LAE reserve development from prior years, with the Insurance Expense Ratio.
The Company believes Underlying Losses and LAE and the Underlying Combined Ratio are useful to investors and uses these financial measures to reveal the trends in the Company’s Property & Casualty Insurance segment that may be obscured by catastrophe losses and prior-year reserve development. These catastrophe losses may cause the Company’s loss trends to vary significantly between periods as a result of their incidence of occurrence and magnitude and can have a significant impact on incurred losses and LAE and the Combined Ratio. Prior-year reserve developments are caused by unexpected loss development on historical reserves. Because reserve development relates to the re-estimation of losses from earlier periods, it has no bearing on the performance of the Company’s insurance products in the current period. The Company believes it is useful for investors to evaluate these components separately and in the aggregate when reviewing the Company’s underwriting performance.
Kemper Corporation
Definitions of Non-GAAP Financial Measures (continued)
Book Value Per Share Excluding Goodwill is a calculation that uses a non-GAAP financial measure. It is calculated by dividing shareholders’ equity excluding goodwill by total Common Shares Issued and Outstanding. Book value per share is the most directly comparable GAAP financial measure. Book Value Per Share Excluding Goodwill is a common measure used by analysts and investors to compare similar companies.
Book Value Per Share Excluding Net Unrealized Gains and Losses on Fixed Maturities and the Change in Discount Rate on Future Life Policyholder Benefits is a calculation that uses a non-GAAP financial measure. It is calculated by dividing shareholders’ equity after excluding the after-tax impact of net unrealized gains and losses on fixed income securities and the change in discount rate on future life policyholder benefits by total Common Shares Issued and Outstanding. Book value per share is the most directly comparable GAAP financial measure. The Company uses the trends in book value per share excluding the after-tax impact of net unrealized gains and losses on fixed income securities and the change in discount rate on future life policyholder benefits in conjunction with book value per share to identify and analyze the change in net worth attributable to management efforts between periods. The Company believes the non-GAAP financial measure is useful to investors because it eliminates the effect of items that can fluctuate significantly from period to period and are generally driven by economic developments, primarily capital market conditions, the magnitude and timing of which are not influenced by management. The Company believes it enhances understanding and comparability of performance by highlighting underlying business activity and profitability drivers.
Book Value Per Share Excluding Net Unrealized Gains and Losses on Fixed Maturities, the Change in Discount Rate on Future Life Policyholder Benefits and Goodwill is a calculation that uses a non-GAAP financial measure. It is calculated by dividing shareholders’ equity after excluding the after-tax impact of net unrealized gains and losses on fixed income securities, the change in discount rate on future life policyholder benefits and goodwill by total Common Shares Issued and Outstanding. Book value per share is the most directly comparable GAAP financial measure. The Company uses the trends in book value per share excluding the after-tax impact of net unrealized gains and losses on fixed income securities, the change in discount rate on future life policyholder benefits and goodwill in conjunction with book value per share to identify and analyze the change in net worth excluding goodwill attributable to management efforts between periods. The Company believes the non-GAAP financial measure is useful to investors because it eliminates the effect of items that can fluctuate significantly from period to period and are generally driven by economic developments, primarily capital market conditions, the magnitude and timing of which are not influenced by management. The Company believes it enhances understanding and comparability of performance by highlighting underlying business activity and profitability drivers.
Earnings Call Presentation – 4Q 2023 Fourth Quarter 2023 Earnings February 1, 2024
Earnings Call Presentation – 4Q 2023 Preliminary Matters 2 Cautionary Statements Regarding Forward-Looking Information This presentation may contain or incorporate by reference information that includes or is based on forward-looking statements within the meaning of the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995. We caution investors that these forward-looking statements are not guarantees of future performance, and actual results may differ materially. Such statements involve known and unknown risks, uncertainties, and other factors, including but not limited to: • changes in the frequency and severity of insurance claims; • claim development and the process of estimating claim reserves; • the impacts of inflation; • changes in interest rate environment; • supply chain disruption; • product demand and pricing; • effects of governmental and regulatory actions; • litigation outcomes and trends; • investment risks; • cybersecurity risks; • impact of catastrophes; and • other risks and uncertainties detailed in Kemper’s Annual Report on Form 10-K and subsequent filings with the Securities and Exchange Commission (“SEC”). Kemper assumes no obligation to publicly correct or update any forward-looking statements as a result of events or developments subsequent to the date of this presentation. Non-GAAP Financial Measures This presentation contains non-GAAP financial measures that the company believes are meaningful to investors. Non-GAAP financial measures have been reconciled to the most comparable GAAP financial measure.
Earnings Call Presentation – 4Q 2023 Target top quartile value creation for customers, employees and shareholders Leading Insurer Empowering Specialty and Underserved Markets Enabled by a dynamic, diverse and innovative team who act like owners 3 Distribution Have Limited or Unfocused Competition Require Unique Expertise Sizable Market Delivering appropriate and affordable insurance and financial solutions Specialty auto insurance1 for underserved markets; Latino, Hispanic and urban areas Life insurance2 for low/modest income customers Market Characteristics Differentiated Capabilities Product SophisticationEase of UseLow-Cost Management Enable Systematic, Sustainable Competitive Advantages (SSCAs) 1 Kemper Auto is equivalent to the Specialty Property & Casualty Insurance Segment 2 Kemper Life is equivalent to the Life Insurance Segment
Earnings Call Presentation – 4Q 2023 Fourth Quarter 2023 Summary 4 Achieved underwriting profit as earned rate exceeding loss inflation drove margin improvement Continued profit actions and strategic initiatives enabled return to profitability and financial strength • Specialty P&C Private Passenger Auto actions: ̶ Filed an additional 9% rate increase on 9% of the book ̶ Reciprocal Exchange premium growth strategy is on track • Achieved multi-year target of $150+ million expense savings in first year of program • Bermuda optimization generated approximately $330 million of dividends to parent company • Preferred P&C2 exit on track, released $45 million of capital during the 2H'23 and anticipate an additional $130+ million by year-end 2024 Actions Taken & Completed Return to profitability driven by rate and non-rate actions, and cost structure initiatives • Net income attributable to Kemper Corporation of $51.4 million or $0.80/sh • Adjusted consolidated net operating income1 of $50.5 million or $0.78/sh • Specialty P&C underlying combined ratio improved 2.3% sequentially to 98.2% ̶ No prior year reserve development • Life business continues to produce stable earnings • Total pre-tax current year catastrophe losses of $3 million2 4th Quarter Results Capital and liquidity positions enable the company to navigate the current market • Parent company liquidity of approximately $1.1 billion remains a source of strength for subsidiaries • Insurance companies are well capitalized Balance Sheet Strength 1 Non-GAAP financial measure; please see reconciliation in appendix on pages 17-22 2 Excludes $8 million of pre-tax catastrophe losses from Kemper Personal Insurance (Preferred P&C) reported within Non-Core Operations
Earnings Call Presentation – 4Q 2023 Fourth Quarter 2023 Financial Summary 5 Delivered third consecutive quarter of underlying improvement Quarter Ended Year Ended ($ in millions, except per share amounts) Dec 31, 2023 Dec 31, 2022 Dec 31, 2023 Dec 31, 2022 Net Income (Loss) Attributable to Kemper Corporation – Per Diluted Share $0.80 $(0.84) $(4.25) $(4.50) Adj. Consolidated Net Operating Income (Loss) – Per Diluted Share1 $0.78 $(0.36) $(0.74) $(1.82) Tangible Book Value – Per Diluted Share1 $25.39 $28.88 $25.39 $28.88 Return on Shareholders’ Equity 8.4% (7.9)% (10.7)% (10.0)% Return on Tangible Shareholders’ Equity1 12.7% (11.4)% (15.9)% (14.4)% Life Face Value of In-Force YoY Growth / (Decline) (0.7)% (0.5)% (0.7)% (0.5)% Specialty P&C Earned Premium YoY Growth / (Decline) (11.8)% (4.9)% (10.2)% 2.5% Specialty P&C PIF YoY Growth / (Decline) (31.7)% (19.2)% (31.7)% (19.2)% 1 Non-GAAP financial measure; please see reconciliation in appendix on pages 17-22 On track to return to target margins
Earnings Call Presentation – 4Q 2023 Strategic Initiatives Summary 6 Significant benefits realized during the quarter from completed initiatives Initiatives on track to realize or exceed intended benefits 1. Bermuda Optimization: • Enabled approximately $330 million in dividends to parent in 4Q’23, exceeding last quarter’s estimate of $250+ million 2. Streamlining Cost Structure: (see page 7) • Achieved multi-year target of $150+ million in savings in the first year of the program Completed Initiatives 1. Preferred P&C¹ Exit: • Proceeding as planned; will generate greater than $300 million in capital to be redeployed • Released $45 million in capital during 2H'23; anticipate a release of $130+ million in capital by year-end 2024 and additional $100+ million by year-end 2025 2. Reciprocal Exchange: • Population strategy work ongoing; anticipate expanding state and product offerings in late 2024 and early 2025 as forms are filed and approved Ongoing Initiatives 1 Preferred P&C is represented by the Kemper Personal Insurance brand
Earnings Call Presentation – 4Q 2023 (Pre-tax, $ in millions) 4Q’23 Run-Rate Total Program % Reached R u n -R at e Sa vi n gs Loss Adjustment Expense (LAE) Improvements $60 $80 – $120 50% – 75% Enterprise Expense Initiatives (ex-Real Estate & LAE) $81 $60 – $70 116% – 135% Real Estate Optimization $15 $10 150% Total Run-Rate Program Savings $156 $150+ 78% – 104% Cumulative Earned on Run-Rate Savings $153 Cumulative Associated Charges $156 $150 – $200 78% – 104% Expense Savings Exceed $150 Million Target 7 Advancing differentiated capabilities to strengthen systematic, sustainable competitive advantages • Restructuring and integration pre-tax charges of $150 – $200 million will produce an annualized savings of $150 million or greater • Since its inception, program has driven total run-rate savings of $156 million, and incurred total pre-tax charges of $156 million 87 117 137 153 61 150 + 4Q'22 1Q'23 2Q'23 3Q'23 4Q'23 FY'24-FY'25 Proj. Prog. Total Run-Rate Program Savings ($ millions) Expense optimization will continue
Earnings Call Presentation – 4Q 2023 Well-Capitalized Insurance Subsidiaries 8 Continued access to significant sources of liquidity Initiatives underway to further improve financial metrics 23.1% 17.6% 23.2% 24.1% 30.3% 32.6% 2018 2019 2020 2021 2022 2023 Debt-to-Capital 3 Parent Company Liquidity Risk-Based Capital Ratios¹ $540 $660 $700 $704 $918 $683 $101 $207 $733 $234 $418 $465 $641 $867 $1,433 $938 $1,336 $1,148 2018 2019 2020 2021 2022 2023 (% ) Debt Cash Flow from Operating Activities ($ in m ill io n s) $539 $534 $448 $351 $(210) $(134) 2018 2019 2020 2021 2022 2023 HoldCo Cash & Investments Borrowings Available Under Credit Agreement & from Subs P&C (ex. AACC) Life2 1 4Q’23 Risk-Based Capital Ratios are calculated at the Company Action Level and are estimated; actual RBC levels are likely to differ, but will not be known prior to February 1, 2024 | 2 Life Risk-Based Capital Ratios exclude business ceded to Kemper Bermuda Ltd. (KBL) | 3 Excludes AOCI: closely aligns with rating agencies and post-LDTI implementation ($ in m ill io n s) 410 355 340 355 645 535 285 365 330 220 240 275 2018 2019 2020 2021 2022 2023
Earnings Call Presentation – 4Q 2023 Diversified Investment Portfolio with Consistent Returns 9 56% 16% 5% 6% 5% 6% 6% Other States/ Munis COLI 72% 24% 3% 1% Diversified and Highly-Rated Portfolio Fixed Maturity Ratings $6.9 Billion A or Higher ≤ CCCB / BB BBB • High-quality portfolio provides consistent net investment income; 72% of fixed income portfolio rated A or higher • Strong ALM philosophy that mitigates long- term economic and short-term valuation mismatches • 4.5% PTE annualized book yield • Average investment grade new money yields approximately 6% for the quarter $95 $98 $97 $97 $98 $11 $4 $9 $10 $7 $106 $102 $106 $107 $105 4Q'22 1Q'23 2Q'23 3Q'23 4Q'23 Core Portfolio Alternative Inv. Portfolio Net Investment Income1 Highlights Corporates Alternatives U.S Gov’t Portfolio Composition2 Pre-Tax Equiv. Annualized Book Yield $8.9 Billion Short Term 4.6% 4.4% 4.5% 4.6% 4.5% 4Q'22 1Q'23 2Q'23 3Q'23 4Q'23 ($ in m ill io n s) 1 Non-Core Operations reflects $14, $11, $13, $13, and $13 million related to Preferred P&C in 4Q’22, 1Q’23, 2Q’23, 3Q’23, and 4Q’23, respectively | 2 Other category includes Equity Securities, which excludes $196 million of Other Equity Interests of LPs/LLCs that have been reclassified into Alternative Investments; COLI represents Company Owned Life Insurance
Earnings Call Presentation – 4Q 2023 Specialty Property & Casualty Insurance Segment 10 Underlying combined ratio improved 9.6% year-over-year and 2.3% sequentially 107.8 108.0 102.0 100.5 98.2 4Q'22 1Q'23 2Q'23 3Q'23 4Q'23 Underlying Combined Ratio2 (% ) Highlights • Sequential improvement driven by additional earned rate in excess of loss trend • Severity trends have stabilized but remain elevated • Filed 9% of rate on 9% of the book • Focus remains on improving margins and then restoring new business production Metrics ($ in millions) 4Q’23 4Q’22 Change vs. 4Q’22 Earned Premiums $866 $982 (11.8)% Underlying Loss & LAE Ratio2 77.7% 87.6% (9.9)pts Expense Ratio 20.5% 20.2% 0.3pts Policies In-Force (000s) 1,215 1,779 (31.7)% Cumulative PPA Rate Activity Since 2Q’211 On track to reach target profitability enabling restoration of new business ~60% ~59% ~40% Filed Rate Written Rate Earned Rate 1 Represents the cumulative weighted average rate impact of actual filings on the total book 2 Non-GAAP financial measure; see reconciliation in appendix on pages 17-22
Earnings Call Presentation – 4Q 2023 Life Insurance Segment 11 Business trends remain stable Business continues to generate strong return on capital and distributable cash flows $104 $99 $102 $102 $99 $52 $50 $47 $49 $47 $156 $149 $149 $151 $146 4Q'22 1Q'23 2Q'23 3Q'23 4Q'23 Normalized Revenues4 ($ in millions) Earned Premiums Net Investment Income • Consumer demand for products is consistent: – New business levels remain solid – Persistency in line with historical trends; modest pressure from inflationary environment • Quarterly results include the annual actuarial assumption update (required under LDTI)3 Highlights Metrics ($ in millions, except per policy amounts) 4Q’23 4Q’22 Change vs. 4Q’22 Life Net Operating Income3 $15 $23 (34.8)% Face Value of In-Force1 $19,881 $20,022 (0.7)% Avg. Face Value per Policy1 $6,346 $6,246 1.6% Avg. Premium per Policy Issued1,2 $609 $590 3.2% 1 Excludes Reserve National | 2 Annual basis | 3 Increased by $7 million in 4Q'23 and $3 million in 4Q’22 due to annual LDTI actuarial assumption update | 4 Excludes Reserve National (4Q’22: $26 million) and earned premium impact from annual LDTI actuarial assumption update (4Q'22: +$13 million; 4Q'23: -$15 million)
Earnings Call Presentation – 4Q 2023 Key Takeaways 12 On track to return to target margins in 2024 • Achieved underwriting profit in the quarter; sequential underlying results improved for the third consecutive quarter • Expect to reach Specialty P&C target margins in 2024 • Completed significant strategic initiatives, outperforming expectations: – Bermuda optimization enabled approximately $330 million of dividends to parent in 4Q’23 – Multi-year cost structure optimization achieved $150+ million run-rate savings goal in first year • Ongoing strategic initiatives: – Exit of Preferred P&C1 business is progressing; anticipate an additional $130+ million of capital release by year-end 2024 – Kemper Reciprocal Exchange premium growth strategy is on track 1 Preferred P&C is represented by the Kemper Personal Insurance brand
Earnings Call Presentation – 4Q 2023 Appendix 13
Earnings Call Presentation – 4Q 2023 2024 Reinsurance Program 14 Renewed Catastrophe XoL Reinsurance • New policy effective January 1, 2024: ̶ New limit aligned with risk-appetite ̶ New structure improves overall cost of capital for Kemper Catastrophe Excess of Loss Program (XOL): • Program consists of two towers: o 3-year term placed in 2022: $200 million excess $50 million o 1-year term placed in 2024: $190 million excess $50 million o Co-participation: - Layer 1: 15% - Layer 2: 5% • Updated 2024 purchase limit reflects exposure changes, inclusive of the Preferred P&C exit, and model enhancements HighlightsCatastrophe Reinsurance Program 3-Year Term Placed 1/1/22 $100M xs $150M 31.67% Placed 1-Year Term Placed 1/1/24 $90M xs $150M 63.33% Placed Laye r 2 : 5 % co -p articip atio n 3-Year Term Placed 1/1/22 $100M xs $50M 31.67% Placed 1-Year Term Placed 1/1/24 $100M xs $50M 53.33% Placed Laye r 1 : 1 5 % co -p articip atio n Retention 100% of first $50M
Earnings Call Presentation – 4Q 2023 15 Auto Inflation Pressures Remain Elevated Price Indices (Indexed to Q4 2018) Source: U.S. Bureau of Labor Statistics 90 100 110 120 130 140 150 160 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2019 2020 2021 2022 2023 Bodywork Used Car & Truck Medical Care Core CPI 136 135 114 120 Pace of increase moderated in second half of 2023
Earnings Call Presentation – 4Q 2023 Significant, rapid drop in loss trend 16 Time (not to scale) Ea rn e d R at e a n d L o ss T re n d Δ Earned Rate Loss Trend (frequency & severity) Pre-Pandemic Lockdowns Re-Opening / Future Rate filed Rate to zero Predictable loss trend offset by rate Significant, rapid rise in loss trend Prior to 2020 2Q’20 – 1Q’21 Current+ Rate earning-in ILLUSTRATIVE LOSS TREND vs. RATE CYCLE Rate meeting / exceeding loss trend Illustrative Earned Rate vs. Loss Trend Comparison
Earnings Call Presentation – 4Q 2023 Non-GAAP Financial Measures 17 Book Value Per Share Excluding Goodwill is a calculation that uses a non-GAAP financial measure. It is calculated by dividing shareholders’ equity excluding goodwill by total Common Shares Issued and Outstanding. Book value per share is the most directly comparable GAAP financial measure. Book Value Per Share Excluding Goodwill is a common measure used by analysts and investors to compare similar companies. Book Value Per Share Excluding Net Unrealized Gains and Losses on Fixed Maturities and the Change in Discount Rate on Future Life Policyholder Benefits is a calculation that uses a non-GAAP financial measure. It is calculated by dividing shareholders’ equity after excluding the after-tax impact of net unrealized gains and losses on fixed income securities and the change in discount rate on future life policyholder benefits by total Common Shares Issued and Outstanding. Book value per share is the most directly comparable GAAP financial measure. The Company uses the trends in book value per share excluding the after-tax impact of net unrealized gains and losses on fixed income securities and the change in discount rate on future life policyholder benefits in conjunction with book value per share to identify and analyze the change in net worth attributable to management efforts between periods. The Company believes the non-GAAP financial measure is useful to investors because it eliminates the effect of items that can fluctuate significantly from period to period and are generally driven by economic developments, primarily capital market conditions, the magnitude and timing of which are not influenced by management. The Company believes it enhances understanding and comparability of performance by highlighting underlying business activity and profitability drivers. Book Value Per Share Excluding Net Unrealized Gains and Losses on Fixed Maturities, the Change in Discount Rate on Future Life Policyholder Benefits and Goodwill is a calculation that uses a non-GAAP financial measure. It is calculated by dividing shareholders’ equity after excluding the after-tax impact of net unrealized gains and losses on fixed income securities, the change in discount rate on future life policyholder benefits and goodwill by total Common Shares Issued and Outstanding. Book value per share is the most directly comparable GAAP financial measure. The Company uses the trends in book value per share excluding the after-tax impact of net unrealized gains and losses on fixed income securities, the change in discount rate on future life policyholder benefits and goodwill in conjunction with book value per share to identify and analyze the change in net worth excluding goodwill attributable to management efforts between periods. The Company believes the non-GAAP financial measure is useful to investors because it eliminates the effect of items that can fluctuate significantly from period to period and are generally driven by economic developments, primarily capital market conditions, the magnitude and timing of which are not influenced by management. The Company believes it enhances understanding and comparability of performance by highlighting underlying business activity and profitability drivers. Return on Tangible Shareholders’ Equity is a calculation that uses a non-GAAP financial measure. It is calculated by dividing the period’s net income attributable to Kemper Corporation by the average shareholders’ equity excluding net unrealized gains and losses on fixed maturities, the change in discount rate on future life policyholder benefits and goodwill. Return on Shareholders’ Equity is the most directly comparable GAAP measure. We use this non-GAAP measure to identify and analyze the change in performance attributable to management efforts between periods. The Company believes this non-GAAP financial measure is useful to investors because it eliminates the effect of items that can fluctuate significantly from period to period and are generally driven by economic developments, primarily capital market conditions, the magnitude and timing of which are not influenced by management. The Company believes it enhances understanding and comparability of performance by highlighting underlying business activity and profitability drivers.
Earnings Call Presentation – 4Q 2023 Non-GAAP Financial Measures 18 Adjusted Consolidated Net Operating Income (Loss) is an after-tax, non-GAAP financial measure and is computed by excluding from Net Income (Loss) the after-tax impact of: (i) (Loss) income from Change in Fair Value of Equity and Convertible Securities; (ii) Net Realized Investment Gains (Losses); (iii) Impairment (Losses) Gains; (iv) Acquisition and Disposition Related Transaction, Integration, Restructuring and Other Costs; (v) Debt Extinguishment, Pension Settlement and Other Charges; (vi) Goodwill Impairment Charges; (vii) Non-Core Operations; and (viii) Significant non-recurring or infrequent items that may not be indicative of ongoing operations. Significant non-recurring items are excluded when (a) the nature of the charge or gain is such that it is reasonably unlikely to recur within two years, and (b) there has been no similar charge or gain within the prior two years. The most directly comparable GAAP financial measure is Net Income (Loss). There were no applicable significant non-recurring items that the Company excluded from the calculation of Adjusted Consolidated Net Operating Income (Loss) for the three months ended December 31, 2023 or 2022. The Company believes that Adjusted Consolidated Net Operating Income (Loss) provides investors with a valuable measure of its ongoing performance because it reveals underlying operational performance trends that otherwise might be less apparent if the items were not excluded. Income (Loss) from Change in Fair Value of Equity and Convertible Securities, Net Realized Investment Gains (Losses) and Impairment Gains (Losses) related to investments included in the Company’s results may vary significantly between periods and are generally driven by business decisions and external economic developments such as capital market conditions that impact the values of the Company’s investments, the timing of which is unrelated to the insurance underwriting process. Acquisition and Disposition Related Transaction, Integration, Restructuring and Other Costs may vary significantly between periods and are generally driven by the timing of acquisitions and business decisions which are unrelated to the insurance underwriting process. Debt Extinguishment, Pension Settlement and Other Charges relate to (i) loss from early extinguishment of debt, which is driven by the Company’s financing and refinancing decisions and capital needs, as well as external economic developments such as debt market conditions, the timing of which is unrelated to the insurance underwriting process; (ii) settlement of pension plan obligations which are business decisions made by the Company, the timing of which is unrelated to the underwriting process; and (iii) other charges that are non-standard, not part of the ordinary course of business, and unrelated to the insurance underwriting process. Goodwill impairment charges are excluded because they are infrequent and non-recurring charges. Non-Core Operations includes the results of our Preferred Insurance business which we expect to fully exit. These results are excluded because they are irrelevant to our ongoing operations and do not qualify for Discontinued Operations under Generally Accepted Accounting Principles ("GAAP"). Significant non-recurring items are excluded because, by their nature, they are not indicative of the Company’s business or economic trends. The preceding non-GAAP financial measures should not be considered a substitute for the comparable GAAP financial measures, as they do not fully recognize the profitability of the Company’s businesses. Underlying Combined Ratio is a non-GAAP financial measure. It is computed by adding the Current Year Non-catastrophe Losses and LAE Ratio with the Insurance Expense Ratio. The most directly comparable GAAP financial measure is the Combined Ratio, which is computed by adding Total Incurred Losses and LAE Ratio, including the impact of catastrophe losses and loss and LAE reserve development from prior years, with the Insurance Expense Ratio. The Company believes Underlying Losses and LAE and the Underlying Combined Ratio are useful to investors and uses these financial measures to reveal the trends in the Company’s Property & Casualty Insurance segment that may be obscured by catastrophe losses and prior-year reserve development. These catastrophe losses may cause the Company’s loss trends to vary significantly between periods as a result of their incidence of occurrence and magnitude and can have a significant impact on incurred losses and LAE and the Combined Ratio. Prior-year reserve developments are caused by unexpected loss development on historical reserves. Because reserve development relates to the re-estimation of losses from earlier periods, it has no bearing on the performance of the Company’s insurance products in the current period. The Company believes it is useful for investors to evaluate these components separately and in the aggregate when reviewing the Company’s underwriting performance.
Earnings Call Presentation – 4Q 2023 Non-GAAP Financial Measures 19 Book Value Per Share As of ($ per share) Dec 31, 2023 Dec 31, 2022 Book Value Per Share $39.08 $41.79 Less: Net Unrealized Losses on Fixed Maturities 5.82 7.44 Book Value Per Share Excluding Net Unrealized Losses on Fixed Maturities and Changes in the Discount Rate on Future Life Policyholder Benefits $44.90 $49.23 Less: Goodwill (19.51) (20.35) Book Value Per Share Excluding Net Unrealized Losses on Fixed Maturities, Changes in the Discount Rate on Future Life Policyholder Benefits, and Goodwill $25.39 $28.88
Earnings Call Presentation – 4Q 2023 Non-GAAP Financial Measures 20 Return on Tangible Shareholders’ Equity Three Months Ended Year Ended ($ in millions) Dec 31, 2023 Dec 31, 2022 Dec 31, 2023 Dec 31, 2022 Annualized Net Income (Loss) Attributable to Kemper Corporation $205.6 $(213.2) $(272.1) $(286.6) Average Shareholders’ Equity1 $2,433.3 $2,682.6 $2,539.2 $2,861.6 Less: Average Net Unrealized Gains and Losses on Fixed Maturities 716.9 749.7 673.1 296.6 Less: Average Change in Discount Rate on Future Life Policyholder Benefits (286.7) (256.9) (232.6) 145.9 Less: Average Goodwill (1,250.7) (1,299.6) (1,270.5) (1,307.0) Average Tangible Shareholders’ Equity1 $1,612.8 $1,875.8 $1,709.2 $1,997.1 Return on Shareholders’ Equity 8.4% (7.9)% (10.7)% (10.0)% Return on Tangible Shareholders’ Equity 12.7% (11.4)% (15.9)% (14.4)% 1 Average shareholders' equity and average tangible shareholders’ equity for the three months ended is the simple average of the beginning and ending balances for the period. Average shareholders’ equity and average tangible shareholders’ equity on a year-to-date basis is the (a) the sum of the balance at the beginning of the year and the ending balance for each quarter within that year divided by (b) the number of quarters in the period presented plus one.
Earnings Call Presentation – 4Q 2023 Non-GAAP Financial Measures 21 Diluted Adjusted Consolidated Net Operating Income (Loss) Per Unrestricted Share is a non-GAAP financial measure computed by dividing Adjusted Consolidated Net Operating Income (Loss) attributed to unrestricted shares by the weighted-average unrestricted shares and equivalent shares outstanding. The most directly comparable GAAP financial measure is Diluted Net Income (Loss) Per Unrestricted Share. The Company believes that Diluted Adjusted Consolidated Net Operating Income (Loss) Per Unrestricted Share provides investors with a valuable measure of its ongoing performance because it reveals underlying operational performance trends that otherwise might be less apparent if the items were not excluded. Income from change in fair value of equity and convertible securities, net realized investment gains (losses), impairment gains (losses) related to investments, acquisition related transaction, integration and other costs, loss from early extinguishment of debt, and goodwill impairment charges included in the Company’s results may vary significantly between periods and are generally driven by business decisions and external economic developments such as capital market conditions that impact the values of the company’s investments, the timing of which is unrelated to the insurance underwriting process. Three Months Ended ($ per share) Dec 31, 2023 Dec 31, 2022 Net Income (Loss) Per Unrestricted Share Attributable to Kemper Corporation $0.80 $(0.84) Less Net Income (Loss) Per Unrestricted Share From: Income (Loss) from Change in Fair Value of Equity and Convertible Securities (0.03) - Net Realized Investment Gains (Losses) 0.24 0.05 Impairment Gains (Losses) (0.01) (0.05) Acquisition and Disposition Related Transaction, Integration, Restructuring and Other Costs (0.23) (0.46) Debt Extinguishment, Pension Settlement and Other Charges - - Goodwill Impairment Charge - - Non-Core Operations 0.04 (0.02) Adjusted Consolidated Net Operating Income (Loss) Per Unrestricted Share $0.79 $(0.36)
Earnings Call Presentation – 4Q 2023 Three Months Ended 4Q'23 3Q'23 2Q'23 1Q’23 4Q'22 Specialty P&C Insurance Combined Ratio as Reported 98.5% 109.9% 106.5% 112.1% 108.8% Current Year Catastrophe Losses and LAE Ratio (0.3) (0.7) (1.9) (0.9) 0.0 Prior Years Non-Catastrophe Losses and LAE Ratio - (8.8) (2.7) (3.3) (1.0) Prior Years Catastrophe Losses and LAE Ratio - 0.1 0.1 0.1 0.0 Underlying Combined Ratio 98.2% 100.5% 102.0% 108.0% 107.8% Personal Auto Insurance Combined Ratio as Reported 99.5% 112.6% 108.0% 113.0% 111.5% Current Year Catastrophe Losses and LAE Ratio (0.3) (0.7) (2.0) (1.0) 0.0 Prior Years Non-Catastrophe Losses and LAE Ratio 0.3 (9.9) (2.3) (3.0) (1.7) Prior Years Catastrophe Losses and LAE Ratio - 0.1 0.1 0.1 0.0 Underlying Combined Ratio 99.5% 102.1% 103.8% 109.1% 109.8% Commercial Auto Insurance Combined Ratio as Reported 94.9% 98.4% 99.5% 107.8% 93.8% Current Year Catastrophe Losses and LAE Ratio (0.4) (0.7) (1.4) (0.4) (0.1) Prior Years Non-Catastrophe Losses and LAE Ratio (1.2) (4.2) (4.2) (5.2) 2.6 Prior Years Catastrophe Losses and LAE Ratio (0.1) 0.1 0.0 0.0 0.0 Underlying Combined Ratio 93.2% 93.6% 93.9% 102.2% 96.3% Non-GAAP Financial Measures 22 Underlying Combined Ratio
v3.24.0.1
Document and Entity Information
|
Feb. 01, 2024 |
| Cover [Abstract] |
|
| Document Type |
8-K
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| Document Period End Date |
Feb. 01, 2024
|
| Entity Registrant Name |
Kemper Corporation
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| Entity Central Index Key |
0000860748
|
| Amendment Flag |
false
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| Entity File Number |
001-18298
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| Entity Incorporation, State or Country Code |
DE
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| Entity Tax Identification Number |
95-4255452
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| Entity Address, Address Line One |
200 E. Randolph Street
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| Entity Address, Address Line Two |
Suite 3300
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| Entity Address, City or Town |
Chicago
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| Entity Address, State or Province |
IL
|
| Entity Address, Postal Zip Code |
60601
|
| City Area Code |
312
|
| Local Phone Number |
661-4600
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| Written Communications |
false
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| Soliciting Material |
false
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| Pre-commencement Tender Offer |
false
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| Pre-commencement Issuer Tender Offer |
false
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| Entity Emerging Growth Company |
false
|
| Common Stock |
|
| Cover [Abstract] |
|
| Title of 12(b) Security |
Common Stock, par value $0.10 per share
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| Trading Symbol |
KMPR
|
| Security Exchange Name |
NYSE
|
| Entity Listings [Line Items] |
|
| Trading Symbol |
KMPR
|
| Security Exchange Name |
NYSE
|
| Title of 12(b) Security |
Common Stock, par value $0.10 per share
|
| 5.875% Fixed-Rate Reset Junior Subordinated Debentures due 2062 |
|
| Cover [Abstract] |
|
| Title of 12(b) Security |
5.875% Fixed-Rate Reset Junior Subordinated Debentures due 2062
|
| Trading Symbol |
KMPB
|
| Security Exchange Name |
NYSE
|
| Entity Listings [Line Items] |
|
| Trading Symbol |
KMPB
|
| Security Exchange Name |
NYSE
|
| Title of 12(b) Security |
5.875% Fixed-Rate Reset Junior Subordinated Debentures due 2062
|
| X |
- DefinitionBoolean flag that is true when the XBRL content amends previously-filed or accepted submission.
| Name: |
dei_AmendmentFlag |
| Namespace Prefix: |
dei_ |
| Data Type: |
xbrli:booleanItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionFor the EDGAR submission types of Form 8-K: the date of the report, the date of the earliest event reported; for the EDGAR submission types of Form N-1A: the filing date; for all other submission types: the end of the reporting or transition period. The format of the date is YYYY-MM-DD.
| Name: |
dei_DocumentPeriodEndDate |
| Namespace Prefix: |
dei_ |
| Data Type: |
xbrli:dateItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionThe type of document being provided (such as 10-K, 10-Q, 485BPOS, etc). The document type is limited to the same value as the supporting SEC submission type, or the word 'Other'.
| Name: |
dei_DocumentType |
| Namespace Prefix: |
dei_ |
| Data Type: |
dei:submissionTypeItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionAddress Line 1 such as Attn, Building Name, Street Name
| Name: |
dei_EntityAddressAddressLine1 |
| Namespace Prefix: |
dei_ |
| Data Type: |
xbrli:normalizedStringItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionAddress Line 2 such as Street or Suite number
| Name: |
dei_EntityAddressAddressLine2 |
| Namespace Prefix: |
dei_ |
| Data Type: |
xbrli:normalizedStringItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- Definition
+ References
+ Details
| Name: |
dei_EntityAddressCityOrTown |
| Namespace Prefix: |
dei_ |
| Data Type: |
xbrli:normalizedStringItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionCode for the postal or zip code
| Name: |
dei_EntityAddressPostalZipCode |
| Namespace Prefix: |
dei_ |
| Data Type: |
xbrli:normalizedStringItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionName of the state or province.
| Name: |
dei_EntityAddressStateOrProvince |
| Namespace Prefix: |
dei_ |
| Data Type: |
dei:stateOrProvinceItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionA unique 10-digit SEC-issued value to identify entities that have filed disclosures with the SEC. It is commonly abbreviated as CIK. Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Exchange Act
-Number 240
-Section 12
-Subsection b-2
| Name: |
dei_EntityCentralIndexKey |
| Namespace Prefix: |
dei_ |
| Data Type: |
dei:centralIndexKeyItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionIndicate if registrant meets the emerging growth company criteria. Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Exchange Act
-Number 240
-Section 12
-Subsection b-2
| Name: |
dei_EntityEmergingGrowthCompany |
| Namespace Prefix: |
dei_ |
| Data Type: |
xbrli:booleanItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionCommission file number. The field allows up to 17 characters. The prefix may contain 1-3 digits, the sequence number may contain 1-8 digits, the optional suffix may contain 1-4 characters, and the fields are separated with a hyphen.
| Name: |
dei_EntityFileNumber |
| Namespace Prefix: |
dei_ |
| Data Type: |
dei:fileNumberItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionTwo-character EDGAR code representing the state or country of incorporation.
| Name: |
dei_EntityIncorporationStateCountryCode |
| Namespace Prefix: |
dei_ |
| Data Type: |
dei:edgarStateCountryItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionLine items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.
| Name: |
dei_EntityListingsLineItems |
| Namespace Prefix: |
dei_ |
| Data Type: |
xbrli:stringItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionThe exact name of the entity filing the report as specified in its charter, which is required by forms filed with the SEC. Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Exchange Act
-Number 240
-Section 12
-Subsection b-2
| Name: |
dei_EntityRegistrantName |
| Namespace Prefix: |
dei_ |
| Data Type: |
xbrli:normalizedStringItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionThe Tax Identification Number (TIN), also known as an Employer Identification Number (EIN), is a unique 9-digit value assigned by the IRS. Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Exchange Act
-Number 240
-Section 12
-Subsection b-2
| Name: |
dei_EntityTaxIdentificationNumber |
| Namespace Prefix: |
dei_ |
| Data Type: |
dei:employerIdItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionLocal phone number for entity.
| Name: |
dei_LocalPhoneNumber |
| Namespace Prefix: |
dei_ |
| Data Type: |
xbrli:normalizedStringItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionBoolean flag that is true when the Form 8-K filing is intended to satisfy the filing obligation of the registrant as pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act. Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Exchange Act
-Number 240
-Section 13e
-Subsection 4c
| Name: |
dei_PreCommencementIssuerTenderOffer |
| Namespace Prefix: |
dei_ |
| Data Type: |
xbrli:booleanItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionBoolean flag that is true when the Form 8-K filing is intended to satisfy the filing obligation of the registrant as pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act. Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Exchange Act
-Number 240
-Section 14d
-Subsection 2b
| Name: |
dei_PreCommencementTenderOffer |
| Namespace Prefix: |
dei_ |
| Data Type: |
xbrli:booleanItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionTitle of a 12(b) registered security. Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Exchange Act
-Number 240
-Section 12
-Subsection b
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dei_Security12bTitle |
| Namespace Prefix: |
dei_ |
| Data Type: |
dei:securityTitleItemType |
| Balance Type: |
na |
| Period Type: |
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|
| X |
- DefinitionName of the Exchange on which a security is registered. Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Exchange Act
-Number 240
-Section 12
-Subsection d1-1
| Name: |
dei_SecurityExchangeName |
| Namespace Prefix: |
dei_ |
| Data Type: |
dei:edgarExchangeCodeItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionBoolean flag that is true when the Form 8-K filing is intended to satisfy the filing obligation of the registrant as soliciting material pursuant to Rule 14a-12 under the Exchange Act. Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Exchange Act
-Section 14a
-Number 240
-Subsection 12
| Name: |
dei_SolicitingMaterial |
| Namespace Prefix: |
dei_ |
| Data Type: |
xbrli:booleanItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionTrading symbol of an instrument as listed on an exchange.
| Name: |
dei_TradingSymbol |
| Namespace Prefix: |
dei_ |
| Data Type: |
dei:tradingSymbolItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionBoolean flag that is true when the Form 8-K filing is intended to satisfy the filing obligation of the registrant as written communications pursuant to Rule 425 under the Securities Act. Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Securities Act
-Number 230
-Section 425
| Name: |
dei_WrittenCommunications |
| Namespace Prefix: |
dei_ |
| Data Type: |
xbrli:booleanItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- Details
| Name: |
us-gaap_StatementClassOfStockAxis=us-gaap_CommonStockMember |
| Namespace Prefix: |
|
| Data Type: |
na |
| Balance Type: |
|
| Period Type: |
|
|
| X |
- Details
| Name: |
us-gaap_StatementClassOfStockAxis=kmpr_A5875FixedRateResetJuniorSubordinatedDebenturesDue2062Member |
| Namespace Prefix: |
|
| Data Type: |
na |
| Balance Type: |
|
| Period Type: |
|
|
Kemper (NYSE:KMPR)
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From Apr 2024 to May 2024
Kemper (NYSE:KMPR)
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From May 2023 to May 2024
