v3.26.1
Business Segments
 6 Months Ended
Jun. 30, 2026
Segment Reporting [Abstract]  
Business Segments
Note 4 - 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 (“Specialty”) and Life Insurance (“Life”).
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, 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
The Company analyzes the operating performance of each segment using segment adjusted net operating income. Segment adjusted net operating income does not equate to “net (loss) income” 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 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 is calculated by adjusting each segment’s income after income taxes for the following items:
(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 and Other Charges;
(vi) Goodwill Impairment;
(vii) Non-Core Operations; and
(viii) Significant non-recurring or infrequent items that may not be indicative of ongoing operations
Note 4 - Business Segments (Continued)
These items are important to an understanding of overall results of operations. Segment adjusted net operating income is not a substitute for income determined in accordance with U.S. GAAP, and the Company’s definition of segment adjusted net operating income may differ from that used by other companies. The Company, however, believes that the presentation of segment adjusted net operating income, as measured for management purposes, enhances the understanding of results of operations by highlighting the underlying profitability factors of its businesses.
Total Segment, Corporate and Other, and Non-Core Operations assets at June 30, 2026 and December 31, 2025 were:
(Dollars in Millions)
Jun 30,
2026		Dec 31,
2025
Segment Assets:
Specialty Property & Casualty Insurance1, 2
$6,525.1 $6,932.8 
Life Insurance4,780.2 4,839.5 
Total Segment Assets11,305.3 11,772.3 
Corporate and Other265.9 332.3 
Non-Core Operations355.1 368.1 
Total Assets1
$11,926.3 $12,472.7 
1 Includes $66.6 million and $74.5 million attributable to Kemper Reciprocal as of June 30, 2026 and December 31, 2025, respectively, which is reported as a consolidated VIE.
2 During the second quarter of 2026, the Company recorded goodwill impairment of $460.0 million related to the Specialty Property & Casualty Insurance segment. See Note 3, "Goodwill" to the Condensed Consolidated Financial Statements for more information.
Earned Premiums by product line, including a reconciliation to Total Earned Premiums, for the three and six months ended June 30, 2026 and 2025 were:
Three Months EndedSix Months Ended
(Dollars in Millions)Jun 30,
2026		Jun 30,
2025		Jun 30,
2026		Jun 30,
2025
Specialty Property & Casualty Insurance:
Personal Automobile$647.4 $789.3 $1,294.4 $1,543.0 
Commercial Automobile249.2 221.5 487.4 430.0 
Total Specialty Property & Casualty Insurance896.6 1,010.8 1,781.8 1,973.0 
Life Insurance:
Life87.5 84.8 173.1 168.5 
Accident and Health5.4 5.4 10.7 10.9 
Property9.8 10.3 19.7 20.8 
Total Life Insurance102.7 100.5 203.5 200.2 
Total Segment Earned Premiums999.3 1,111.3 1,985.3 2,173.2 
Non-Core Operations12.3 19.5 25.6 45.5 
Total Earned Premiums$1,011.6 $1,130.8 $2,010.9 $2,218.7 
Note 4 - Business Segments (Continued)
Segment Revenues, including a reconciliation to Total Revenues, for the three and six months ended June 30, 2026 and 2025 were:
Three Months EndedSix Months Ended
(Dollars in Millions)Jun 30,
2026		Jun 30,
2025		Jun 30,
2026		Jun 30,
2025
Segment Revenues:
Specialty Property & Casualty Insurance:
Earned Premiums$896.6 $1,010.8 $1,781.8 $1,973.0 
Net Investment Income53.7 49.6 109.0 100.1 
Other Income1.3 2.7 4.0 4.0 
Total Specialty Property & Casualty Insurance951.6 1,063.1 1,894.8 2,077.1 
Life Insurance:
Earned Premiums102.7 100.5 203.5 200.2 
Net Investment Income49.3 44.7 98.0 93.1 
Other Income0.4 0.3 0.7 1.0 
Total Life Insurance152.4 145.5 302.2 294.3 
Total Segment Revenues1,104.0 1,208.6 2,197.0 2,371.4 
Change in Fair Value of Equity and Convertible Securities
(1.7)(0.5)(3.0)(0.4)
Non-Core Operations14.4 21.3 29.8 49.2 
Net Realized Investment Gains (Losses), Impairment Losses, and Other1
(24.0)(3.8)(23.9)(1.6)
Total Revenues$1,092.7 $1,225.6 $2,199.9 $2,418.6 
1 During the fourth quarter of 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 three and six months ended June 30, 2026 and 2025 were:
Three Months EndedSix Months Ended
(Dollars in Millions)Jun 30,
2026		Jun 30,
2025		Jun 30,
2026		Jun 30,
2025
Segment Expenses:
Specialty Property & Casualty Insurance:
Current Year
Non-catastrophe Losses and LAE$732.7 $730.1 $1,475.5 $1,412.4 
Catastrophe Losses and LAE6.1 5.3 7.4 9.1 
Prior Years
Non-catastrophe Losses and LAE9.1 13.6 12.3 14.1 
Catastrophe Losses and LAE0.1 0.4 0.5 0.6 
Total Incurred Losses and LAE748.0 749.4 1,495.7 1,436.2 
Policy Acquisition Costs1
122.5 140.1 245.4 272.4 
Business Unit Operating Costs2
29.1 40.7 67.1 78.4 
Corporate Overhead Costs3
32.7 34.0 68.0 69.1 
Total Insurance Expenses184.3 214.8 380.5 419.9 
Income Tax Expense3.5 19.9 2.7 44.1 
Total Specialty Property & Casualty Insurance935.8 984.1 1,878.9 1,900.2 
Life Insurance:
Policyholders’ Benefits and Incurred Losses and LAE63.5 63.5 127.5 125.7 
Policy Acquisition Costs1
34.0 35.2 63.3 64.9 
Business Unit Operating Costs2
24.9 24.0 51.2 51.5 
Corporate Overhead Costs3
8.4 8.5 17.4 17.7 
Total Insurance Expenses67.3 67.7 131.9 134.1 
Income Tax Expense3.3 1.7 6.5 4.7 
Total Life Insurance134.1 132.9 265.9 264.5 
Total Segment Expenses$1,069.9 $1,117.0 $2,144.8 $2,164.7 
1 Policy 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.
2 Business unit operating costs are general expenses incurred by the Company's segments as part of ongoing operations and includes employee, IT, and facilities expenses.
3 Corporate overhead costs represents general expenses and other shared service expenses which are allocated across the Company.
Note 4 - Business Segments (Continued)
Total Segment Adjusted Net Operating Income, including a reconciliation to Net (Loss) Income attributable to Kemper Corporation, for the three and six months ended June 30, 2026 and 2025 was:
Three Months EndedSix Months Ended
(Dollars in Millions)Jun 30,
2026		Jun 30,
2025		Jun 30,
2026		Jun 30,
2025
Segment Adjusted Net Operating Income:
Specialty Property & Casualty Insurance
Revenues$951.6 $1,063.1 $1,894.8 $2,077.1 
Expenses(935.8)(984.1)(1,878.9)(1,900.2)
Specialty Property & Casualty Insurance Adjusted Net Operating Income
15.8 79.0 15.9 176.9 
Life Insurance
Revenues152.4 145.5 302.2 294.3 
Expenses(134.1)(132.9)(265.9)(264.5)
Life Insurance Adjusted Net Operating Income
18.3 12.6 36.3 29.8 
Total Segment Adjusted Net Operating Income
34.1 91.6 52.2 206.7 
Corporate and Other Adjusted Net Operating Loss
(9.0)(10.3)(17.3)(21.7)
Less: Net Loss attributable to Noncontrolling Interest
(1.2)(2.8)(3.9)(5.5)
Net Income (Loss) From:
Change in Fair Value of Equity and Convertible Securities(1.4)(0.4)(2.4)(0.3)
Net Realized Investment Gains (Losses)0.5 (0.1)0.8 0.6 
Impairment Losses(18.8)(2.8)(20.1)(2.6)
Acquisition and Disposition Related Transaction, Integration, Restructuring and Other Costs(11.6)(3.8)(16.6)(8.0)
Debt Extinguishment and Other Charges— — — 0.4 
Goodwill Impairment(460.0)— (460.0)— 
Non-Core Operations0.2 (4.4)(7.0)(8.3)
Net (Loss) Income attributable to Kemper Corporation
$(464.8)$72.6 $(466.5)$172.3