v3.25.4
Schedule 2 - Parent Company Financial Statements (Tables)
 12 Months Ended
Dec. 31, 2025
Condensed Financial Information Disclosure [Abstract]  
Parent Company Balance Sheets
KEMPER CORPORATION
PARENT COMPANY BALANCE SHEETS
(Dollars in Millions)
December 31,
20252024
ASSETS
Investments in Subsidiaries$3,544.0 $3,773.8 
Fixed Maturities at Fair Value (Amortized Cost: 2025 – $0.5; 2024 - $0.5)
0.5 0.5 
Equity Securities at Fair Value (Cost: 2025 - $13.8; 2024 - $12.8)
11.9 10.9 
Equity Method Limited Liability Investments17.0 — 
Short-term Investments118.0 453.8 
Other Investments36.0 22.2 
Cash48.0 2.3 
Other Receivables23.8 60.9 
Current Income Taxes— 54.3 
Right-of-Use Assets6.7 7.2 
Other Assets11.3 13.1 
Total Assets$3,817.2 $4,399.0 
LIABILITIES AND SHAREHOLDERS’ EQUITY
Senior Notes Payable, 4.350% due 2025 (Fair Value: 2025 – $—; 2024 – $448.1)
$— $449.9 
Senior Notes Payable, 2.400% due 2030 (Fair Value: 2025 – $358.1; 2024 – $338.9)
397.9 397.5 
Senior Notes Payable, 3.800% due 2032 (Fair Value: 2025 - $369.4; 2024 - $352.2)
396.9 396.5 
Fixed-Rate Reset Junior Subordinated Debentures, 5.875% due 2062 (Fair Value: 2025 - $140.4; 2024 - $139.2)
148.7 147.7 
Current Income Tax Liability27.2 — 
Deferred Income Tax Liability114.6 137.0 
Liabilities for Benefit Plans30.9 32.1 
Right-of-Use Liabilities19.6 21.3 
Accrued Expenses and Other Liabilities— 28.6 
Total Liabilities1,135.8 1,610.6 
Shareholders’ Equity:
Common Stock5.9 6.4 
Additional Paid-in Capital1,723.9 1,854.9 
Retained Earnings1,157.8 1,231.6 
Accumulated Other Comprehensive Loss
(206.2)(304.5)
Total Shareholders’ Equity2,681.4 2,788.4 
Total Liabilities and Shareholders’ Equity$3,817.2 $4,399.0 
See Accompanying Report of Independent Registered Public Accounting Firm.
Parent Company Statements of Income (Loss)
KEMPER CORPORATION
PARENT COMPANY STATEMENTS OF INCOME (LOSS)
(Dollars in Millions)
 For the Year Ended December 31,
 202520242023
Net Investment Income$(0.8)$15.9 $8.6 
Change in Fair Value of Equity Securities— (0.2)(1.5)
Net Realized Investment Losses
(0.9)(10.6)(11.9)
Impairment Losses(0.1)— (0.4)
Total Revenues(1.8)5.1 (5.2)
Interest Expense40.5 58.1 56.7 
Pension Settlement Expense— (2.6)70.2 
Other Operating Expenses
5.5 12.7 6.1 
Total Operating Expenses46.0 68.2 133.0 
Loss before Income Taxes and Equity in Net Income (Loss) of Subsidiaries
(47.8)(63.1)(138.2)
Income Tax Benefit
(2.9)(8.8)(28.4)
Loss before Equity in Net Income (Loss) of Subsidiaries
(44.9)(54.3)(109.8)
Equity in Net Income (Loss) of Subsidiaries
188.2 372.1 (162.5)
Net Income (Loss)143.3 317.8 (272.3)
Less: Net Loss attributable to Noncontrolling Interest
— — (0.2)
Net Income (Loss) attributable to Kemper Corporation
$143.3 $317.8 $(272.1)
See Accompanying Report of Independent Registered Public Accounting Firm.
Parent Company Statements of Comprehensive Income
KEMPER CORPORATION
PARENT COMPANY STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
(Dollars in Millions) 
 For the Year Ended December 31,
 202520242023
Net Income (Loss)
$143.3 $317.8 $(272.3)
Other Comprehensive Income:
Changes in Net Unrealized Gains (Losses) on Investment Securities:
Having No Credit Losses Recognized in Consolidated Statements of Loss:
Securities Held by Subsidiaries160.7 (210.5)235.0 
Securities Held by Parent— 0.6 (0.6)
Having Credit Losses Recognized in Consolidated Statements of Loss:
 Securities Held by Subsidiaries0.3 (0.6)(0.5)
Reclassification Adjustment for Securities Having No Credit Losses Included in Net Loss:
Securities Held by Subsidiaries1.6 8.8 4.5 
Securities Held by Parent— 2.4 (0.1)
Reclassification Adjustment for Securities Having Credit Losses Included in Net Loss:
Securities Held by Subsidiaries— (0.7)— 
Unrecognized Postretirement Benefit Costs Arising During the Year:
Subsidiaries— 0.5 0.1 
Parent(0.9)1.3 (7.4)
Reclassification Adjustment for Postretirement Benefit Costs Arising During the Year:
Subsidiaries(0.4)(0.3)(0.3)
Parent(1.7)(2.8)66.8 
Unrecognized Gain (Loss) on Cash Flow Hedges Arising During the Year:
Subsidiaries1.5 (6.3)— 
Parent— — — 
Reclassification Adjustment for Gain (Loss) on Cash Flow Hedges Arising During the Year:
Subsidiaries0.3 — — 
Parent(0.5)0.9 (0.2)
Change in Discount Rate on Future Life Policyholder Benefits(37.3)278.0 (101.7)
Other Comprehensive Income Before Income Taxes
123.6 71.3 195.6 
Income Tax Expense:
Changes in Net Unrealized (Losses) Gains on Investment Securities:
Having No Credit Losses Recognized in Consolidated Statements of Loss:
Securities Held by Subsidiaries33.7 (44.2)49.5 
Securities Held by Parent— 0.1 (0.1)
Having Credit Losses Recognized in Consolidated Statements of Loss:
Securities Held by Subsidiaries0.1 (0.3)(0.2)
Reclassification Adjustment for Securities Having No Credit Losses Included in Net Loss:
Securities Held by Subsidiaries0.3 1.8 1.0 
Securities Held by Parent— 0.5 (0.1)
Reclassification Adjustment for Securities Having Credit Losses Included in Net Loss:
Securities Held by Subsidiaries— (0.3)— 
Unrecognized Postretirement Benefit Costs Arising During the Year:
Subsidiaries— 0.1 — 
Parent(0.2)0.3 (1.3)
Reclassification Adjustment for Postretirement Benefit Costs Arising During the Year:
Subsidiaries(0.1)— (0.2)
Parent(0.4)(0.6)14.0 
Unrecognized Gain (Loss) on Cash Flow Hedges Arising During the Year:
Subsidiaries(0.3)(0.9)— 
Reclassification Adjustment for Gain (Loss) on Cash Flow Hedges Arising During the Year:
Subsidiaries0.1 — — 
Parent(0.1)0.2 0.1 
Change in Discount Rate on Future Life Policyholder Benefits(7.8)58.3 (21.2)
Income Tax Expense
25.3 15.0 41.5 
Other Comprehensive Income (Loss)98.3 56.3 154.1 
Total Comprehensive Income (Loss)
$241.6 $374.1 $(118.2)
Less: Total Comprehensive Loss attributable to Noncontrolling Interest— — (0.2)
Total Comprehensive Income (Loss) attributable to Kemper Corporation$241.6 $374.1 $(118.0)
See Accompanying Report of Independent Registered Public Accounting Firm.
Parent Company Statements of Cash Flows
KEMPER CORPORATION
PARENT COMPANY STATEMENTS OF CASH FLOWS
(Dollars in Millions)
 For the Year Ended December 31,
 202520242023
Operating Activities:
Net Income (Loss)
$143.3 $317.8 $(272.3)
Adjustment Required to Reconcile Net Income (Loss) to Net Cash Provided by Operations:
Equity in Net Loss (Income) of Subsidiaries(188.2)(372.1)162.5 
Cash Dividends from Subsidiaries498.5 245.4 320.8 
Net Realized Investment Losses
0.9 10.6 11.9 
Settlement Related to Defined Benefit Pension Plan
— (2.6)70.2 
Impairment Losses0.1 — 0.4 
Income from Change in Fair Value of Equity Securities
— 0.2 1.5 
Other
139.2 31.9 (30.6)
Net Cash Provided by Operating Activities
593.8 231.2 264.4 
Investing Activities:
Capital Contributed to Subsidiaries(3.7)— (177.5)
Contribution to Non-Controlling Interest
(14.0)(18.0)(4.0)
Proceeds from the Sales, Calls and Maturities of Fixed Maturities— 35.3 50.8 
Proceeds from the Sales or Paydowns of Investments:
Equity Securities1.7 2.7 14.8 
Purchases of Investments:
Equity Securities(2.7)(3.8)(2.1)
Net (Purchases) Sales of Short-term Investments
298.4 (126.3)(112.2)
Other0.2 (0.1)(23.2)
Net Cash Provided by (Used in) Investing Activities
279.9 (110.2)(253.4)
Financing Activities:
Proceeds from Loans from Subsidiaries
250.0 — — 
Repayments of Loans from Subsidiaries
(250.0)— — 
Repayment of Long-term Debt(450.0)— — 
Proceeds from Shares Issued under Employee Stock Purchase Plan3.7 3.8 4.3 
Common Stock Repurchases(301.9)(38.9)— 
Dividends and Dividend Equivalents Paid(79.6)(80.1)(79.6)
Other(0.2)(5.0)(0.5)
Net Cash Used in Financing Activities
(828.0)(120.2)(75.8)
Net increase (decrease) in cash
45.7 0.8 (64.8)
Cash, Beginning of Year
2.3 1.5 66.3 
Cash, End of Year
$48.0 $2.3 $1.5 
See Accompanying Report of Independent Registered Public Accounting Firm.
Lease, Cost
The following table presents operating lease right-of-use assets and lease liabilities.
(Dollars in Millions)Dec 31, 2025Dec 31, 2024
Operating Lease Right-of-Use Assets$45.4 $33.9 
Operating Lease Liabilities61.4 51.6 
Lease expenses are included in Insurance and Other Expenses in the Consolidated Statements of Income (Loss). Additional information regarding the Company’s operating leases for the year ended December 31, 2025 and 2024 is presented below.
(Dollars in Millions)20252024
Lease Cost:
Operating Lease Cost$16.7 $15.5 
Variable Lease Cost4.1 4.7 
Short-Term Lease Cost1
0.5 1.1 
Total Lease Cost$21.3 $21.3 
1 Leases with an initial term of twelve months or less are not recorded on the Consolidated Balance Sheets.
20252024
Weighted-average Remaining Lease Term - Operating Leases5.1 years4.5 years
Weighted-average Discount Rate - Operating Leases4.6 %4.5 %
DOLLARS IN MILLIONS20252024
Operating Lease Right-of-Use Assets$6.7 $7.2 
Operating Lease Liabilities19.6 21.3 
Supplemental cash flow information related to Kemper’s operating leases for the year ended December 31, 2025 and December 31, 2024 respectively are presented follows.
DOLLARS IN MILLIONS20252024
Operating Cash Flows from Operating Leases (Fixed Payments)$2.6 $3.0 
Operating Cash Flows from Operating Leases (Liability Reduction)1.8 2.1 

Significant judgments and assumptions for determining lease asset and liability as December 31, 2025 and December 31, 2024 respectively are presented below.
DOLLARS IN MILLIONS20252024
Weighted-average Remaining Lease Term - Operating Leases8.0 years9.0 years
Weighted-average Discount Rate - Operating Leases4.0 %4.0 %
Schedule of Future Minimum Lease Payments for Operating Leases
Future minimum lease payments under operating leases at December 31, 2025 are presented below.
(Dollars in Millions)
2026$17.1 
202713.9 
202811.6 
20299.3 
20307.5 
2031 and Thereafter9.7 
Total Future Payments$69.1 
Less: Discount7.7 
Present Value of Minimum Lease Payments$61.4 
Future minimum operating lease payments at December 31, 2025 were:
DOLLARS IN MILLIONSOperating
Leases
2026$2.6 
20272.7 
20282.8 
20292.8 
20302.9 
2031 and Thereafter9.2 
Total Future Payments$23.0 
Less Discount3.4 
Present Value of Minimum Lease Payments$19.6