Income Taxes (Tables)

12 Months Ended

Dec. 31, 2025

Schedule of Deferred Tax Assets and Liabilities

The tax effects of temporary differences that give rise to significant portions of the Company’s Net Deferred Income Tax Assets and Deferred Income Tax Liabilities at December 31, 2025 and 2024 were:


DOLLARS IN MILLIONS	2025		2024
Deferred Income Tax Assets:
Insurance Reserves	$	5.5	$	—
Unearned Premium Reserves	51.5		52.8
Tax Capitalization of Policy Acquisition Costs	51.8		49.5
Payroll and Employee Benefit Accruals	29.9		34.7
Investments	118.4		147.6
Net Operating Loss and Credit Carryforwards	3.9		14.0
Other	60.4		45.9
Subtotal	321.4		344.5
Valuation Allowance	(38.0)		(38.7)
Total Deferred Income Tax Assets	283.4		305.8
Deferred Income Tax Liabilities:
Insurance Reserves	—		39.5
Deferred Policy Acquisition Costs	137.9		132.3

Goodwill and Other Intangible Assets	35.5		35.0
Depreciable Assets	21.2		14.6
Other	2.5		4.4
Total Deferred Income Tax Liabilities	197.1		225.8

Net Deferred Income Tax Assets1	$	86.3	$	80.0
1 Includes $4.2 million and $1.5 million attributable to Kemper Reciprocal at December 31, 2025 and 2024, respectively, which is reported as a consolidated variable interest entity.

Summary of Operating Loss Carryforwards

The expiration of federal net operating loss (“NOL”) carryforwards and their related deferred income tax assets at December 31, 2025 is presented below by year of expiration.


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





2043	$	0.3	$	0.1
2044	4.4		0.9
2045	14.1		2.9
Total All Years	$	18.8	$	3.9

Schedule of Components of Income Tax Expense (Benefit)

The components of Income Tax Expense (Benefit) from Operations for the years ended December 31, 2025, 2024 and 2023 were:


DOLLARS IN MILLIONS	2025		2024		2023
Current Income Tax Expense (Benefit)	$	58.3	$	11.9	$	(4.0)
Deferred Income Tax (Benefit) Expense	(30.2)		64.1		(70.8)

Income Tax Expense (Benefit)	$	28.1	$	76.0	$	(74.8)

Schedule of Income Taxes Paid, Net of Income Tax Refunds

Federal, state and local, and foreign income taxes paid, net of income tax refunds received for the year ended December 31, 2025. 2024 and 2023 were:


	2025				2024				2023
DOLLARS IN MILLIONS	Amount		Percentage of Total Taxes Paid		Amount		Percentage of Total Taxes Paid		Amount		Percentage of Total Taxes Paid
United States:
Federal	$	33.1	93.8	%	$	9.9	88.4	%	$	(107.7)	100.9	%




State and Local	2.2		6.2		1.3		11.6		1.0		(0.9)
Foreign:
Bermuda	—		—		—		—		—		—
Total Income Taxes Paid (Refunds Received)	$	35.3	100.0	%	$	11.2	100.0	%	$	(106.7)	100.0	%

Schedule of Effective Income Tax Rate Reconciliation

A reconciliation of the Statutory Federal Income Tax Expense (Benefit) and Rate to the Company’s Income Tax Expense (Benefit) and Rate from Operations for the years ended December 31, 2025. 2024 and 2023 is presented below.


	2025				2024				2023
DOLLARS IN MILLIONS	Amount		Rate		Amount		Rate		Amount		Rate
United States	$	93.8			$	469.3			$	(490.1)
Bermuda	66.9				(80.8)				143.0
Income (Loss) from Continuing Operations before Tax	$	160.7			$	388.5			$	(347.1)

Statutory Federal Income Tax (Expense) Benefit	$	33.7	21.0	%	$	81.6	21.0	%	$	(72.9)	21.0	%
State and Local Income Tax Expense (Benefit), net of Federal Income Tax Effect 1	1.7		1.1		0.6		0.2		1.1		(0.3)
Foreign Tax Effects:
Bermuda
Tax Rate Difference between Bermuda and United States	(4.0)		(2.5)		17.0		4.4		(30.0)		8.6
Bermuda Tax - Change in Enactment	—		—		(2.9)		(0.7)		(27.4)		7.9
Foreign Tax Credits	(9.3)		(5.8)		—		—		—		—
Change in Valuation Allowance	(0.7)		(0.4)		2.9		0.7		27.4		(7.9)
Effect of Cross-Border Tax Laws
U.S. Tax on Foreign Insurance Income	14.0		8.7		(17.0)		(4.4)		30.0		(8.6)
Nontaxable or Nondeductible Items:
Tax exempt Income and Dividends Received Deductions	(3.2)		(2.0)		(3.4)		(0.9)		(4.8)		1.4
Untaxed Earnings on Company-Owned Life Insurance	(9.0)		(5.6)		(7.5)		(1.9)		(6.1)		1.8
Nondeductible Executive Compensation (§162(m))	6.7		4.2		3.5		0.9		1.8		(0.5)
Nondeductible - Goodwill Impairment	—		—		—		—		6.3		(1.8)
Other	1.5		0.9		2.4		0.6		2.7		(0.8)
Tax Credits	(3.3)		(2.1)		(1.2)		(0.3)		(2.9)		0.8
Other Adjustments	—		—		—		—		—		—
Income Tax Expense (Benefit)	$	28.1	17.5	%	$	76.0	19.6	%	$	(74.8)	21.6	%

Net Income (Loss)	132.6				312.5				(272.3)
Noncontrolling Interest	(13.6)				(6.7)				(0.3)
Noncontrolling Interest Tax Benefit	(2.9)		(1.8)	%	(1.4)		(0.4)	%	(0.1)		—	%
Net Income (Loss) Attributable to Kemper Corporation	$	143.3			$	317.8			$	(272.1)

1 For the years ended December 31, 2025, and 2024, state taxes in Illinois and Florida represented the majority (greater than 50 percent) of the state and local tax effect in this category. For the year ended December 31, 2023, state taxes in Louisiana and Florida represented the majority of state and local tax effect in this category.

Schedule of Comprehensive Income Tax Benefit and Expenses

Comprehensive Income Tax Expense (Benefit) included in the Consolidated Financial Statements for the years ended December 31, 2025, 2024 and 2023 was:


DOLLARS IN MILLIONS	2025		2024		2023
Income Tax Expense (Benefit):
Operations	$	28.1	$	76.0	$	(74.8)

Unrealized Appreciation (Depreciation) on Securities	34.0		(42.2)		50.3

Tax Effects from Postretirement Benefit Plans	(0.4)		(0.3)		12.4
Tax Effects on changes in Discount Rate for Life Reserves	(7.8)		58.3		(21.2)
Tax Effects from Cash Flow Hedge	(0.2)		(0.8)		—

Comprehensive Income Tax Expense (Benefit)	$	53.7	$	91.0	$	(33.3)