v3.25.4
Property and Casualty Insurance Reserves (Tables)
 12 Months Ended
Dec. 31, 2025
Liability for Future Policy Benefits and Unpaid Claims and Claims Adjustment Expense [Abstract]  
Short-duration Insurance Contracts, Claims Development
NOTE 5. PROPERTY AND CASUALTY INSURANCE RESERVES (Continued)
Specialty Personal Automobile Insurance—Liability1
DOLLARS IN MILLIONS, EXCEPT CUMULATIVE INCURRED CLAIMSAs of December 31, 2025
Incurred Losses and Allocated LAE, Net of Reinsurance
For the Years Ended December 31,		Total of IBNR Liabilities Plus Expected Development on Reported ClaimsCumulative Number of Reported Claims
Accident Year20212022202320242025
2021$1,856.9 $1,824.7 $1,844.2 $1,861.0 $1,876.3 $40.8 586,733 
20221,765.9 1,848.7 1,880.7 1,908.3 69.5 475,955 
20231,448.7 1,391.7 1,398.9 89.2 307,191 
20241,224.4 1,142.7 148.5 238,155 
20251,536.0 630.3 219,453 
Total7,862.2 
Cumulative Paid Losses and Allocated LAE, Net of Reinsurance
For the Years Ended December 31,
Accident Year20212022202320242025
2021$657.1 $1,429.4 $1,680.8 $1,767.5 $1,815.9 
2022738.2 1,463.3 1,700.4 1,800.3 
2023580.4 1,092.8 1,259.3 
2024422.6 879.8 
2025518.8 
Total6,274.1 
Outstanding Loss and Allocated LAE Reserves on Accident Years before 2021, Net of Reinsurance49.5 
Loss and Allocated LAE Reserves, Net of Reinsurance$1,637.6 
1 Tables retrospectively include American Access Casualty Company’s (“AAC”), acquired in 2021, historical incurred and paid accident year claim information for all periods presented.
NOTE 5. PROPERTY AND CASUALTY INSURANCE RESERVES (Continued)
Specialty Personal Automobile Insurance—Physical Damage1
DOLLARS IN MILLIONS, EXCEPT CUMULATIVE INCURRED CLAIMSAs of December 31, 2025
Incurred Losses and Allocated LAE, Net of Reinsurance
For the Years Ended December 31,		Total of IBNR Liabilities Plus Expected Development on Reported ClaimsCumulative Number of Reported Claims
Accident Year20212022202320242025
2021$958.0 $967.5 $967.2 $967.4 $969.5 $1.1 362,023 
2022993.5 989.5 990.0 992.6 1.5 309,194 
2023722.6 715.8 720.4 2.6 206,702 
2024500.8 491.4 1.6 143,660 
2025502.3 (10.6)138,631 
Total3,676.2 
Cumulative Paid Losses and Allocated LAE, Net of Reinsurance
For the Years Ended December 31,
Accident Year20212022202320242025
2021$890.1 $977.5 $968.3 $967.2 $968.0 
2022921.9 997.8 990.5 990.5 
2023699.2 720.7 717.5 
2024466.7 489.4 
2025485.1 
Total3,650.5 
Outstanding Loss and Allocated LAE Reserves on Accident Years before 2021, Net of Reinsurance(2.2)
Loss and Allocated LAE Reserves, Net of Reinsurance$23.5 
1 Tables retrospectively include AAC’s, acquired in 2021, historical incurred and paid accident year claim information for all periods presented.
NOTE 5. PROPERTY AND CASUALTY INSURANCE RESERVES (Continued)
Commercial Automobile Insurance—Liability
DOLLARS IN MILLIONS, EXCEPT CUMULATIVE INCURRED CLAIMSAs of December 31, 2025
Incurred Losses and Allocated LAE, Net of Reinsurance
For the Years Ended December 31,		Total of IBNR Liabilities Plus Expected Development on Reported ClaimsCumulative Number of Reported Claims
Accident Year20212022202320242025
2021$225.6 $228.6 $240.4 $250.4 $263.6 $10.5 27,517 
2022305.1 309.1 317.9 343.8 33.2 32,562 
2023379.9 361.7 408.7 68.6 35,702 
2024406.6 398.8 139.8 33,611 
2025519.4 334.6 32,794 
Total1,934.3 
Cumulative Paid Losses and Allocated LAE, Net of Reinsurance and Indemnification
For the Years Ended December 31,
Accident Year20212022202320242025
2021$50.8 $128.0 $168.6 $208.3 $241.5 
202272.2 159.0 222.1 273.0 
202387.5 189.6 278.9 
202469.1 179.7 
202587.0 
Total1,060.1 
Outstanding Loss and Allocated LAE Reserves on Accident Years before 2021, Net of Reinsurance13.8 
Loss and Allocated LAE Reserves, Net of Reinsurance$888.0 
NOTE 5. PROPERTY AND CASUALTY INSURANCE RESERVES (Continued)
Commercial Automobile Insurance—Physical Damage
DOLLARS IN MILLIONS, EXCEPT CUMULATIVE INCURRED CLAIMSAs of December 31, 2025
Incurred Losses and Allocated LAE, Net of Reinsurance
For the Years Ended December 31,		Total of IBNR Liabilities Plus Expected Development on Reported ClaimsCumulative Number of Reported Claims
Accident Year20212022202320242025
2021$52.4 $51.9 $51.6 $51.8 $51.8 $0.3 17,705 
202274.5 74.7 74.8 74.9 0.5 21,578 
202390.0 87.5 87.4 0.7 20,263 
202481.6 73.8 (0.6)17,716 
202580.1 7.4 18,183 
Total368.0 
Cumulative Paid Losses and Allocated LAE, Net of Reinsurance and Indemnification
For the Years Ended December 31,
Accident Year20212022202320242025
2021$43.3 $51.9 $51.4 $51.5 $51.5 
202266.8 74.6 74.2 74.4 
202380.6 86.9 86.6 
202466.1 74.3 
202565.4 
Total352.2 
Outstanding Loss and Allocated LAE Reserves on Accident Years before 2021, Net of Reinsurance— 
Loss and Allocated LAE Reserves, Net of Reinsurance$15.8 
NOTE 5. PROPERTY AND CASUALTY INSURANCE RESERVES (Continued)
Non-Core Personal Automobile Insurance—Liability
DOLLARS IN MILLIONS, EXCEPT CUMULATIVE INCURRED CLAIMSAs of December 31, 2025
Incurred Losses and Allocated LAE, Net of Reinsurance
For the Years Ended December 31,		Total of IBNR Liabilities Plus Expected Development on Reported ClaimsCumulative Number of Reported Claims
Accident Year20212022202320242025
2021$176.9 $179.8 $180.6 $182.0 $181.7 $1.3 27,263 
2022165.0 172.4 173.5 174.5 3.1 24,308 
2023135.0 137.5 139.3 8.1 16,917 
202458.7 59.6 7.4 6,956 
202521.6 8.3 1,720 
Total576.7 
Cumulative Paid Losses and Allocated LAE, Net of Reinsurance
For the Years Ended December 31,
Accident Year20212022202320242025
2021$50.3 $106.1 $144.1 $161.9 $172.3 
202255.0 111.0 139.1 158.3 
202343.7 84.6 113.0 
202419.6 39.0 
20256.6 
Total489.2 
Outstanding Loss and Allocated LAE Reserves on Accident Years before 2021, Net of Reinsurance5.1 
Loss and Allocated LAE Reserves, Net of Reinsurance$92.6 
NOTE 5. PROPERTY AND CASUALTY INSURANCE RESERVES (Continued)
Non-Core Personal Automobile Insurance—Physical Damage
DOLLARS IN MILLIONS, EXCEPT CUMULATIVE INCURRED CLAIMSAs of December 31, 2025
Incurred Losses and Allocated LAE, Net of Reinsurance
For the Years Ended December 31,		Total of IBNR Liabilities Plus Expected Development on Reported ClaimsCumulative Number of Reported Claims
Accident Year20212022202320242025
2021$118.5 $117.9 $117.1 $117.1 $117.1 $— 53,493 
2022110.9 113.5 113.6 113.6 — 48,165 
202386.6 84.7 84.9 (0.1)33,966 
202431.7 32.3 (0.2)12,938 
20258.3 — 2,689 
Total356.2 
Cumulative Paid Losses and Allocated LAE, Net of Reinsurance
For the Years Ended December 31,
Accident Year20212022202320242025
2021$113.1 $118.1 $117.2 $117.1 $117.1 
2022108.7 114.6 113.7 113.6 
202384.8 85.4 85.0 
202432.1 32.5 
20257.9 
Total356.1 
Outstanding Loss and Allocated LAE Reserves on Accident Years before 2021, Net of Reinsurance— 
Loss and Allocated LAE Reserves, Net of Reinsurance$0.1 
NOTE 5. PROPERTY AND CASUALTY INSURANCE RESERVES (Continued)
Non-Core Homeowners Insurance
DOLLARS IN MILLIONS, EXCEPT CUMULATIVE INCURRED CLAIMSAs of December 31, 2025
Incurred Losses and Allocated LAE, Net of Reinsurance
For the Years Ended December 31,		Total of IBNR Liabilities Plus Expected Development on Reported ClaimsCumulative Number of Reported Claims
Accident Year20212022202320242025
2021$149.9 $149.8 $143.9 $144.3 $143.8 $0.4 13,457 
2022142.7 152.7 155.2 154.9 1.0 11,533 
2023126.6 135.3 135.8 1.1 9,979 
202480.6 78.4 1.0 4,411 
202512.2 1.8 526 
Total525.1 
Cumulative Paid Losses and Allocated LAE, Net of Reinsurance
For the Years Ended December 31,
Accident Year20212022202320242025
2021$100.6 $132.6 $139.7 $141.3 $142.1 
202297.0 141.2 149.3 152.6 
202384.7 127.8 132.8 
202459.2 74.1 
20258.2 
Total509.8 
Outstanding Loss and Allocated LAE Reserves on Accident Years before 2021, Net of Reinsurance1.7 
Loss and Allocated LAE Reserves, Net of Reinsurance$17.0 
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability
The following table reconciles the net incurred and paid claims development tables presented above to the Company's liability for Property and Casualty Insurance Reserves included in the Consolidated Balance Sheets at December 31, 2025.
DOLLARS IN MILLIONS2025
Property and Casualty Insurance Reserves, Net of Reinsurance:
Specialty Personal Automobile Insurance—Liability1
$1,637.6 
Specialty Personal Automobile Insurance—Physical Damage1
23.5 
Commercial Automobile Insurance—Liability888.0 
Commercial Automobile Insurance—Physical Damage15.8 
Non-Core Personal Automobile Insurance—Liability92.6 
Non-Core Personal Automobile Insurance—Physical Damage0.1 
Non-Core Homeowners Insurance17.0 
Other29.9 
Total$2,704.5 
Reinsurance Recoverables on Unpaid Losses and Allocated LAE:
Specialty Personal Automobile Insurance—Liability$5.2 
Non-Core Preferred Personal Automobile Insurance—Liability18.9 
Non-Core Homeowners Insurance— 
Other1.5 
Total25.6 
Unallocated LAE210.1 
Property and Casualty Insurance Reserves, Gross of Reinsurance1
$2,940.2 
1Includes $29.1 million and $0.3 million of Specialty Personal Automobile Liability and Physical Damage Insurance Reserves, respectively, related to Kemper Reciprocal, which is reported as a consolidated variable interest entity.
Short-duration Insurance Contracts, Schedule of Historical Claims Duration
The following is supplementary information about average historical claims duration as of December 31, 2025.
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance (Unaudited)
Years12345
Specialty Personal Automobile Insurance—Liability37.2 %77.0 %89.6 %94.3 %96.8 %
Specialty Personal Automobile Insurance—Physical Damage94.7 100.0 100.0 99.8 99.8 
Commercial Automobile Insurance—Liability19.1 46.6 65.6 79.2 91.6 
Commercial Automobile Insurance—Physical Damage87.2 100.0 100.0 100.0 100.0 
Non-Core Preferred Personal Automobile Insurance—Liability30.8 62.0 80.1 89.9 94.8 
Non-Core Preferred Personal Automobile Insurance—Physical Damage97.3 100.0 100.0 100.0 100.0 
Non-Core Homeowners Insurance67.5 93.0 97.1 98.4 98.8 
Premium Receivable, Allowance for Credit Loss
The following tables present the balances of Receivables from Policyholders, net of the allowance for expected credit losses, as of December 31, 2025 and 2024, and a roll forward of changes in the allowance for expected credit losses for the years ended December 31, 2025 and 2024.
Year Ended December 31, 2025
(Dollars in Millions)
Specialty
LifeTotal SegmentsNon-Core OperationsTotal Allowance for Expected Credit Losses
Balance at Beginning of Year$2.6 $— $2.6 $0.3 $2.9 
Provision for Expected Credit Losses53.7 0.2 53.9 0.3 54.2 
Write-offs of Uncollectible Receivables from Policyholders(54.4)(0.2)(54.6)(0.5)(55.1)
Balance at End of Year$1.9 $— $1.9 $0.1 $2.0 
Receivable Balance at End of Year1
$957.3 $10.8 $968.1 $7.5 $975.6 
1Specialty, Total Segments, and Total includes $10.4 million attributable to Kemper Reciprocal, which is reported as a consolidated variable interest entity.
NOTE 8. RECEIVABLES FROM POLICYHOLDERS - ALLOWANCE FOR EXPECTED CREDIT LOSSES (Continued)
Year Ended December 31, 2024
(Dollars in Millions)SpecialtyLifeTotal SegmentsNon-Core OperationsTotal Allowance for Expected Credit Losses
Balance at Beginning of Year$12.9 $— $12.9 $1.0 $13.9 
Provision for Expected Credit Losses38.9 0.3 39.2 0.4 39.6 
Write-offs of Uncollectible Receivables from Policyholders(49.2)(0.3)(49.5)(1.1)(50.6)
Balance at End of Year$2.6 $— $2.6 $0.3 $2.9 
Receivable Balance at End of Year1
$962.8 $11.1 $973.9 $12.2 $986.1 
1Specialty, Total Segments, and Total includes $8.2 million attributable to Kemper Reciprocal, which is reported as a consolidated variable interest entity.
Schedule of Liability for Unpaid Claims and Claims Adjustment Expense
Property and Casualty Insurance Reserve activity for the years ended December 31, 2025, 2024 and 2023 was:
DOLLARS IN MILLIONS202520242023
Property and Casualty Insurance Reserves:
Gross of Reinsurance at Beginning of Year$2,611.9 $2,680.5 $2,756.9 
Less: Reinsurance Recoverables at Beginning of Year24.3 27.8 39.6 
Property and Casualty Insurance Reserves, Net of Reinsurance at Beginning of Year
2,587.6 2,652.7 2,717.3 
Incurred Losses and LAE related to:
Current Year3,025.6 2,745.9 3,429.9 
Prior Years76.0 29.8 159.8 
Total Incurred Losses and LAE3,101.6 2,775.7 3,589.7 
Paid Losses and LAE related to:
Current Year:1,424.9 1,383.0 1,965.3 
Prior Years1,379.1 1,457.8 1,689.0 
Total Paid Losses and LAE2,804.0 2,840.8 3,654.3 
Property and Casualty Insurance Reserves, Net of Reinsurance at End of Year2,885.2 2,587.6 2,652.7 
Plus: Reinsurance Recoverables at End of Year25.6 24.3 27.8 
Property and Casualty Insurance Reserves, Gross of Reinsurance at End of Year
$2,910.8 $2,611.9 $2,680.5