The following table presents the balances and changes in Deferred Policy Acquisition Costs for the Specialty Property and Casualty Insurance segment, Life Insurance segment, and Non-Core Operations business for the years ended December 31, 2025, 2024 and 2023: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | DOLLARS IN MILLIONS | | Specialty | | Life | | Segment Total | | Non-Core Operations | | Total | Balance, January 1, 2023 | | $ | 192.7 | | | $ | 404.8 | | | $ | 597.5 | | | $ | 38.1 | | | $ | 635.6 | | Capitalizations | | 446.3 | | | 62.1 | | | 508.4 | | | 54.9 | | | 563.3 | | Amortization Expense1 | | (496.4) | | | (39.9) | | | (536.3) | | | (71.0) | | | (607.3) | | Balance, December 31, 2023 | | $ | 142.6 | | | $ | 427.0 | | | $ | 569.6 | | | $ | 22.0 | | | $ | 591.6 | | | Capitalizations | | 494.3 | | | 68.7 | | | 563.0 | | | 13.4 | | | 576.4 | | Amortization Expense1 | | (474.1) | | | (32.6) | | | (506.7) | | | (31.3) | | | (538.0) | | Balance, December 31, 20242 | | $ | 162.8 | | | $ | 463.1 | | | $ | 625.9 | | | $ | 4.1 | | | $ | 630.0 | | | Capitalizations | | 530.9 | | | 63.5 | | | 594.4 | | | 6.3 | | | 600.7 | | Amortization Expense1,3 | | (534.9) | | | (29.5) | | | (564.4) | | | (9.6) | | | (574.0) | | Balance, December 31, 20252 | | $ | 158.8 | | | $ | 497.1 | | | $ | 655.9 | | | $ | 0.8 | | | $ | 656.7 | | 1 The Life Insurance segment includes increases to amortization expense related to experience adjustments of $4.6 million, $7.4 million, and $15.6 million for the years ended December 31, 2025, 2024, and 2023, respectively. 2 Includes $1.3 million and $1.1 million attributable to Kemper Reciprocal as of December 31, 2025 and 2024, respectively, which is reported as a consolidated variable interest entity. 3Includes $2.0 million of impairment within Non-Core Operations related to a premium deficiency recognized during the year. |
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