v3.25.4
Business Segments
 12 Months Ended
Dec. 31, 2025
Segment Reporting [Abstract]  
Business Segments BUSINESS SEGMENTS
The Company is engaged, through its subsidiaries, in the property and casualty insurance and life and health insurance businesses. The Company conducts its operations through two operating segments: Specialty Property & Casualty Insurance, and Life Insurance.
The Specialty Property & Casualty Insurance segment’s principal products are specialty personal automobile and commercial automobile insurance. These products are distributed primarily through independent agents and brokers. The Life Insurance segment’s principal products are individual life, accident, supplemental health and property insurance. Career agents employed by the Company distribute these products. Corporate and Other operations include interest expense, board of directors’ fees, and general corporate expenses incurred by the Company which are not allocated to other businesses and eliminations of certain inter-segment amounts. Non-Core Operations includes the results of the Preferred Insurance business which the Company expects to fully exit.

Segment Adjusted Net Operating Income (Loss)
The Company analyzes the operating performance of each segment using segment adjusted net operating income (loss). Segment adjusted net operating income (loss) does not equate to “net income (loss)” as determined in accordance with U.S. GAAP but is the measure of segment profit or loss used by the Company’s Chief Operating Decision Maker (“CODM”), our Interim President and CEO, to evaluate segment performance and allocate resources, and consistent with authoritative guidance, is the measure of segment performance presented below. Segment adjusted net operating income (loss) is calculated by adjusting each segment’s income (loss) after income taxes for the following items:
NOTE 4. BUSINESS SEGMENTS (Continued)

(i) 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
These items are important to an understanding of overall results of operations. Segment adjusted net operating income (loss) is not a substitute for income determined in accordance with U.S. GAAP, and the Company’s definition of segment adjusted net operating income (loss) may differ from that used by other companies. The Company, however, believes that the presentation of segment adjusted net operating income (loss), as measured for management purposes, enhances the understanding of results of operations by highlighting the underlying profitability factors of its businesses.
The Company’s earned premiums are derived in the United States. The accounting policies of the segments are the same as those described in Note 2, “Summary of Accounting Policies and Accounting Changes,” to the Consolidated Financial Statements. Capital expenditures for long-lived assets by operating segment are immaterial.
It is the Company’s management practice to allocate certain corporate expenses, primarily compensation costs for corporate employees and related facility costs, included in Insurance and Other Expenses in the Consolidated Statements of Income (Loss) to its insurance operations. Expenses are allocated based upon specific metrics associated with each business, including but not limited to claim counts, headcount, and budgeted premium. The Company does not allocate (Loss) Income from Change in Fair Value of Equity Securities, Net Realized Investment Gains (Losses), Impairment Losses, Acquisition and Disposition Related Transaction, Integration, Restructuring and Other Costs, Debt Extinguishment, Pension Settlement and Other Charges, Goodwill Impairment Charges, Non-Core Operations, and Significant non-recurring or infrequent items that may not be indicative of ongoing operations to its operating segments.
Total Segment, Non-Core Operations, and Corporate and Other assets at December 31, 2025, 2024, and 2023 were:
DOLLARS IN MILLIONS202520242023
Segment Assets:
Specialty Property & Casualty Insurance1
$6,932.8 $6,352.9 $6,145.9 
Life Insurance4,839.5 4,731.7 4,898.1 
Total Segment Assets11,772.3 11,084.6 11,044.0 
Corporate and Other332.3 774.7 623.7 
Non-Core Operations368.1 771.1 1,075.0 
Total Assets1
$12,472.7 $12,630.4 $12,742.7 
1Includes $74.5 million, $41.5 million, and $4.6 million attributable to Kemper Reciprocal as of December 31, 2025, 2024, and 2023, respectively, which is reported as a consolidated variable interest entity.
NOTE 4. BUSINESS SEGMENTS (Continued)
Earned Premiums by product line for the years ended December 31, 2025, 2024 and 2023 were:
DOLLARS IN MILLIONS202520242023
Specialty Property & Casualty Insurance:
Personal Automobile$3,024.9 $2,851.4 $2,977.8 
Commercial Automobile900.8 725.0 654.7 
Total Specialty Property & Casualty Insurance
3,925.7 3,576.4 3,632.5 
Life Insurance:
Life330.6 328.1 319.2 
Accident and Health21.8 22.3 23.1 
Property41.0 43.5 45.3 
Total Life Insurance
393.4 393.9 387.6 
Total Segment Earned Premiums4,319.1 3,970.3 4,020.1 
Non-Core Operations77.2 245.6 509.3 
Total Earned Premiums$4,396.3 $4,215.9 $4,529.4 
Segment Revenues, including a reconciliation to Total Revenues, for the years ended December 31, 2025, 2024 and 2023 were:
DOLLARS IN MILLIONS202520242023
Segment Revenues:
Specialty Property & Casualty Insurance:
Earned Premiums$3,925.7 $3,576.4 $3,632.5 
Net Investment Income211.2 189.6 168.3 
Other Income8.9 6.1 6.1 
Total Specialty Property & Casualty Insurance4,145.8 3,772.1 3,806.9 
Life Insurance:
Earned Premiums393.4 393.9 387.6 
Net Investment Income188.2 170.6 193.4 
Other Income1.6 1.1 0.5 
Total Life Insurance583.2 565.6 581.5 
Total Segment Revenues4,729.0 4,337.7 4,388.4 
Change in Fair Value of Equity and Convertible Securities(4.3)(2.7)4.7 
Non-Core Operations84.9 282.4 558.4 
Net Realized Investment Gains (Losses), Impairment Losses, and Other1
(19.9)21.2 (7.3)
Total Revenues$4,789.7 $4,638.6 $4,944.2 
1During 2025, the Company elected to change the presentation of Net Realized Investment Gains (Losses), Impairment Losses, and Other by combining them into a single line item. Prior-period amounts have been recast to conform to the current-period presentation.
NOTE 4. BUSINESS SEGMENTS (Continued)
Significant Segment Expenses that were regularly provided to the CODM for the years ended December 31, 2025, 2024 and 2023 were:
DOLLARS IN MILLIONS202520242023
Segment Expenses:
Specialty Property & Casualty Insurance:
Current Year
Non-catastrophe Losses and LAE$2,991.1 $2,514.8 $2,974.5 
Catastrophe Losses and LAE11.5 19.9 34.5 
Prior Years
Non-catastrophe Losses and LAE74.8 6.3 135.2 
Catastrophe Losses and LAE(0.2)0.7 (2.3)
Total Incurred Losses and LAE3,077.2 2,541.7 3,141.9 
Policy Acquisition Costs1
539.4 478.7 496.4 
Business Unit Operating Costs2
160.9 145.0 107.8 
Corporate Overhead Costs3
136.3 135.8 137.1 
Total Insurance Expenses836.6 759.5 741.3 
Income Tax Expense (Benefit)
44.9 94.6 (19.2)
Total Specialty Property & Casualty Insurance3,958.7 3,395.8 3,864.0 
Life Insurance:
Policyholders’ Benefits and Incurred Losses and LAE238.7 234.5 243.4 
Policy Acquisition Costs1
129.1 133.9 140.0 
Business Unit Operating Costs2
101.6 96.9 96.7 
Corporate Overhead Costs3
33.7 41.3 39.1 
Total Insurance Expenses264.4 272.1 275.8 
Income Tax Expense
11.6 8.8 10.5 
Total Life Insurance514.7 515.4 529.7 
Total Segment Expenses$4,473.4 $3,911.2 $4,393.7 
1Policy acquisition costs primarily represents commissions and premium taxes that are incurred by the Company as a result of underwriting insurance policies and reflect the impacts of deferral and amortization of certain of these costs in accordance with the Company’s accounting policies. Refer to Footnote 2, “Summary of Accounting Policies and Accounting Changes” for discussion of the Company’s accounting policy related to Deferred Policy Acquisition Costs.
2Business unit operating costs are general expenses incurred by the Company's segments as part of ongoing operations and includes employee, IT, and facilities expenses.
3Corporate overhead costs represents general expenses and other shared service expenses which are allocated across the Company.
NOTE 4. BUSINESS SEGMENTS (Continued)
Total Segment Adjusted Consolidated Net Operating Income (Loss), including a reconciliation to Net Income (Loss) attributable to Kemper Corporation, for the years ended December 31, 2025, 2024 and 2023 was:
DOLLARS IN MILLIONS202520242023
Segment Adjusted Net Operating Income:
Specialty Property & Casualty Insurance
Revenues
$4,145.8 $3,772.1 $3,806.9 
Expenses
(3,958.7)(3,395.8)(3,864.0)
Specialty Property & Casualty Insurance Adjusted Net Operating Income (Loss)
187.1 376.3 (57.1)
Life Insurance
Revenues
583.2 565.6 581.5 
Expenses
(514.7)(515.4)(529.7)
Life Insurance Adjusted Net Operating Income
68.5 50.2 51.8 
Total Segment Adjusted Net Operating Income
255.6 426.5 (5.3)
Corporate and Other Adjusted Net Operating Loss(40.8)(50.3)(42.1)
Less: Net Loss attributable to Noncontrolling Interest(10.7)(5.3)(0.2)
Net (Loss) Income From:
Change in Fair Value of Equity and Convertible Securities(3.4)(2.1)3.7 
Net Realized Investment Gains (Losses)
4.3 10.4 (14.7)
Impairment Losses(8.5)(4.6)(0.9)
Acquisition and Disposition Related Transaction, Integration, Restructuring and Other Costs(43.1)(31.8)(95.0)
Debt Extinguishment, Pension Settlement, and Other Charges0.4 (7.4)(55.5)
Goodwill Impairment Charges— — (45.5)
Non-Core Operations(31.9)(28.2)(17.0)
Net Income Attributable to Kemper Corporation
$143.3 $317.8 $(272.1)