KEMPER Corp
For the period ended Dec 31, 2025. Filed Feb 11, 2026.
View on SEC.govAbout this filing
A company's yearly report to the SEC, with audited financial statements. It is the fullest account a company gives of its business, its finances and the risks it sees.
FY2025 · Filed Feb 11, 2026
KMPR$33.39-5.5%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-K
Period ended 2024-12-31; filed 2025-02-07.
0000860748-25-000053
Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations—(Continued)Current report: 10-K
Period ended 2025-12-31; filed 2026-02-11.
0000860748-26-000014
Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations—(Continued)The baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 235 previous paragraphs and 231 current paragraphs.
143 unchanged; 57 reworded; 25 added; 34 removed; 1 previous and 6 current paragraphs rearranged.
Tables are not compared: 25 previous and 24 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (25)
Current report
Net Income (Loss) attributable to Kemper Corporation decreased by $174.5 million in 2025, compared to 2024, due primarily to lower Adjusted Consolidated Net Operating Income.
Current report
Adjusted Consolidated Net Operating Income (Loss) decreased by $156.0 million in 2025, compared to 2024, due primarily to a deterioration in the Specialty Property & Casualty Insurance segment’s Underlying Combined Ratio and higher adverse prior year development on bodily injury coverages within commercial automobile insurance, partially offset by higher average earned premiums per exposure resulting from rate increases. This was partially offset by increased Life Insurance segment earnings driven by higher net investment income and a reduction in insurance expenses. Life Insurance segment results for the year December 31, 2024 included an $11.9 million after-tax loss from an investment valuation adjustment on one real estate investment from our alternative investment portfolio.
Current report
The loss from Non-Core Operations increased by $3.7 million in 2025, compared to 2024, primarily due to reduced net investment income and earned premiums outpacing reduced expenses as the business continues to run off. Additionally, the Company recognized $21.7 million of impairment losses in 2025 on Internal-Use Software assets reported as Other Assets on the Consolidated Balance Sheets. These were partially offset by a reduction in catastrophe losses and lower adverse prior year development. Separately, on August 1, 2025, certain Non-Core Operations subsidiaries entered into a renewal rights agreement with a third party and certain of its affiliates (collectively, the “Third Party”) whereby the Third Party will offer replacement policies for certain policies written by these subsidiaries in New York after the expiration of their current term. Execution of the terms of the agreement is contingent upon the granting of regulatory approvals by the New York Department of Financial Services.
Current report
Corporate and Other Adjusted Net Operating Loss decreased $9.5 million in 2025, compared to 2024, primarily driven by lower interest expense due to the redemption of $450 million of 4.350% senior notes.
Current report
Total Revenues increased by $151.1 million to $4,789.7 million in 2025, compared to $4,638.6 million in 2024. The increase was primarily driven by higher earned premiums.
Current report
Earned Premiums increased by $180.4 million to $4,396.3 million in 2025, compared to $4,215.9 million in 2024, primarily driven by a $349.3 million increase from the Specialty Property & Casualty Insurance segment due to higher average earned premiums per exposure resulting from rate increases and higher commercial automobile volumes, partially offset by a $168.4 million reduction from our Preferred Insurance business, reported as Non-Core Operations, due primarily to lower volumes resulting from the exit and run-off of the business. Additionally, since Florida insurance reform was enacted in 2023, Kemper has experienced lower loss costs within its personal auto business, and this has led to ongoing favorable loss reserve development and expected profits on the current accident year. During the fourth quarter, the Company concluded that it is probable Florida personal auto underwriting profit for the three most recent years ended December 31, 2025, will exceed the profit limit imposed by a Florida insurance statute. During the fourth quarter of 2025 Kemper recorded a $35.0 million reduction to earned premiums, which represents a current estimate of the Florida personal auto profit that will be earned during the three-year period in excess of the permitted profit limit. This estimate will be updated through the first quarter of 2026 for development related to the three most recent years ended December 31, 2025. The statute requires that excess profits be returned to policyholders active as of December 31, 2025. The Company expects to fund credits to eligible policyholders in 2026.
Current report
Net Investment Income decreased by $2.5 million in 2025, compared to 2024, primarily driven by lower average Short-term invested assets, partially offset by higher earnings on common stock, Company-Owned Life Insurance, and mortgage loan assets.
Current report
Other (Loss) Income decreased by $12.5 million in 2025, compared to 2024, primarily driven by a $13.3 million loss from the fair market value adjustment of a tax credit equity investment.
Current report
Impairment losses increased by $5.0 million in 2025, compared to 2024, primarily driven by an increase in the allowance for credit losses on fixed maturity securities.
Current report
Earned Premiums in the Specialty Property & Casualty Insurance segment increased by $349.3 million in 2025, compared to 2024, due to higher average earned premiums per exposure resulting from rate increases and higher commercial automobile volumes.
Current report
$7.2 million in 2024, an increase of $69.3 million due primarily to evolving loss patterns and higher defense costs associated with attorney-represented bodily injury coverages. Catastrophe losses and LAE (excluding reserve development) were $2.8 million for the year ended December 31, 2025, compared to $5.4 million for the same period in 2024 a decrease of $2.6 million due to few catastrophe events and lower severity per event in 2025.
Current report
Net Investment Income increased by $17.6 million in 2025, compared to 2024, due primarily to lower losses on alternative investments and higher earnings on Company-Owned Life Insurance. The year ended December 31, 2024 included a $15.1 million pre-tax loss on an investment valuation adjustment of a real estate investment in our alternative investment portfolio.
Current report
INVESTMENT RESULTS (Continued)
Current report
INVESTMENT RESULTS (Continued)
Current report
Fixed Maturities
Current report
Insurance Expenses were $1,167.4 million for the year ended December 31, 2025 compared to $1,113.9 million for the year ended December 31, 2024. Policy acquisition costs increased $36.6 million compared to the same period in 2024, primarily due to growth in the Specialty Property & Casualty Insurance segment from higher business volumes, partially offset by reductions due to lower volumes resulting from the exit and run-off of the Preferred Insurance business. Business Unit Operating Costs increased $33.3 million compared to the same period in 2024, primarily due to impairment losses recognized on Internal-Use Software assets related to the run-off of the Preferred Insurance business as well as increased bad debt expense resulting from business volumes in the Specialty Property & Casualty Insurance segment. Corporate Overhead Costs decreased $16.4 million in 2025 compared to 2024 primarily due to lower employee-related costs.
Current report
Acquisition and Disposition Related Transaction, Integration, Restructuring and Other Costs for the year ended December 31, 2025 included $17.4 million of integration expenses related to continued investments in information technology and $20.6 million of restructuring charges to achieve operational and organizational efficiencies. The Company will continue to evaluate additional efficiency opportunities through 2027.
Current report
Other Corporate Costs for the year ended December 31, 2025 decreased $18.8 million compared to 2024, primarily due to lower legal expenses and absence of pension plan related expenses, following the termination and wind down of the Company’s pension trust.
Current report
Interest expense decreased by $18.4 million in 2025 compared to 2024 primarily due to redemption of $450 million of 4.350% senior notes.
Current report
In July 2025, the One Big Beautiful Bill Act (“OBBBA”) was signed, enacting significant changes to federal tax law. The OBBBA includes, among other provisions, extension and modifications of various provisions from the 2017 Tax Cuts and Jobs Act, immediate expensing of domestic research and experimental costs, accelerated depreciation, compensation-related items, and the repeal of certain clean energy tax credits. The Company has evaluated the impacts of the OBBBA, which were not material to the consolidated financial statements, and will continue to monitor developments as further information becomes available.
Current report
The Company incurred $2.2 million of debt issuance costs in relation to the amended agreement. As of December 31, 2025 there were $0.6 million of remaining unamortized costs under the credit agreement, which will be amortized under the remaining term of the credit agreement.
Current report
In August 2025, the Company entered into an accelerated share repurchase agreement (the “ASR agreement”) with Goldman Sachs & Co. LLC to repurchase an aggregate amount of $150.0 million of shares of the Company’s common stock. The transactions under the ASR agreement were settled and immediately retired during the third and fourth quarters of 2025.
Current report
Net cash provided by Operating Activities was $584.5 million in 2025, compared to $382.9 million provided in 2024, an increase of $201.6 million. The increase in cash provided by Operating Activities was primarily driven by growth from our Specialty Property & Casualty business due to higher average earned premiums per exposure resulting from rate increases and timing of claim payments. This was partially offset by lower business volumes and timing of claim payments within Non-Core Operations resulting from the exit and run-off of the Preferred Insurance business.
Current report
Insurance Reserves for the Company’s life & health insurance business operations were $3,287.5 million and $3,199.7 million at December 31, 2025 and 2024, respectively.
Current report
The Company tests goodwill for recoverability at the reporting unit level on an annual basis, or whenever events or circumstances indicate the fair value of a reporting unit may have declined below its carrying value. The Company performed a quantitative goodwill impairment assessment for all reporting units with goodwill as of October 1, 2025. The quantitative assessment compares the estimated fair value of a reporting unit to its carrying value to determine if there is an impairment of goodwill. Estimating the fair value of a reporting unit is judgmental in nature and involves the use of significant estimates and assumptions by the Company. The estimates and assumptions included, but were not limited to, projections of future cash flows, operating results, discount rates, investment yields and market conditions. Such projections are inherently uncertain and, accordingly, actual future results may differ materially from the Company’s projections. For each reporting unit tested, the estimated fair value exceeded the carrying value of the reporting unit, and the Company concluded that the associated goodwill was recoverable. See Note 14, “Goodwill and Intangibles,” for more information.
Removed paragraphs (34)
Previous report
Net Income (Loss) attributable to Kemper Corporation increased by $589.9 million in 2024, compared to 2023, due primarily to higher Adjusted Consolidated Net Operating Income and lower Acquisition and Disposition Related Transaction, Integration, Restructuring and Other Costs from the completion of certain strategic initiatives and lower costs in connection with the 2023 cost structure optimization initiatives. The increase was also due to the absence of a $55.5 million after-tax noncash charge related to the settlement of the Company’s pension obligations recorded in 2023, and the absence of a $45.5 million after-tax charge from the impairment of the goodwill asset related to the Preferred Property & Casualty Insurance business that was also recorded in 2023.
Previous report
Adjusted Consolidated Net Operating Income (Loss) increased by $428.7 million in 2024, compared to 2023, due primarily to an improvement in the Specialty Property & Casualty Insurance segment profitability driven by higher average earned premiums per exposure resulting from rate increases, lower underlying claim frequency, and lower adverse prior year development.
Previous report
The loss from Non-Core Operations increased by $11.2 million in 2024, compared to 2023, primarily due to reduced earned premiums during the run-off period and increasing claim severity, partially offset by reduced claim frequency and increased average earned premium as a result of rate increases.
Previous report
Corporate and Other Adjusted Net Operating Loss increased $8.2 million in 2024, compared to 2023, due primarily to increased overhead expenses, partially offset by increased investment income.
Previous report
Total Revenues decreased by $305.6 million to $4,638.6 million in 2024, compared to $4,944.2 million in 2023. The decrease was primarily driven by a reduction in earned premiums.
Previous report
Earned Premiums decreased by $313.5 million to $4,215.9 million in 2024, compared to $4,529.4 million in 2023, primarily driven by a $263.7 million reduction from our Non-Core Operations, due primarily to lower volumes resulting from the exit and run-off of the Preferred Insurance business. The decrease was also due to $56.1 million lower earned premiums from the Specialty Property & Casualty Insurance segment due to lower average business volumes resulting from targeted actions to improve profitability, partially offset by higher average earned premium per exposure resulting from rate increases.
Previous report
Net Investment Income decreased by $12.2 million in 2024, compared to 2023, mostly driven by lower earnings from equity method investments, which included a $15.1 million loss from an investment valuation adjustment of one real estate investment in our alternative investment portfolio, and lower levels of fixed income securities, partially offset by higher levels of Short-term Investments.
Previous report
Earned Premiums in the Specialty Property & Casualty Insurance segment decreased by $56.1 million in 2024, compared to 2023, due to lower average business volumes resulting from targeted actions to improve profitability, partially offset by higher average earned premium per exposure resulting from rate increases.
Previous report
Net Investment Income decreased by $22.8 million in 2024, compared to 2023, due primarily to lower earnings from alternative investments, which included a $15.1 million loss from an investment valuation adjustment of one real estate investment, and lower levels of fixed income securities.
Previous report
decreased $20.3 million due primarily to improved mortality experience in life insurance products and lower Policyholders’ Benefits in accident and health products.
Previous report
Income and distributions on alternative investments can fluctuate significantly between periods as they are influenced by operating performance of the underlying investments, changes in market or economic conditions or the timing of asset sales.
Previous report
Net realized gains and losses on sales of fixed maturities for the year ended December 31, 2024 primarily relate to normal portfolio management. The net realized losses on hedging activity for the year ended December 31, 2024 related to treasury futures that did not qualify for hedge accounting treatment.
Previous report
Net realized gains and losses on sales of fixed maturities for the year ended December 31, 2023 primarily relate to normal portfolio management.
Previous report
Net realized gains and losses on sales of equity securities for the year ended December 31, 2024 primarily related to disposals of equity securities and preferred stock.
Previous report
Net realized gains and losses on sales of equity securities for the year ended December 31, 2023 primarily related to disposals of equity securities and preferred stock.
Previous report
The Company recognized Impairment Losses in the Consolidated Statements of Income (Loss) for the year ended December 31, 2024 primarily related to investments in Equity Securities at Modified Cost where the Company has the intent or requirement to sell.
Previous report
The Company recognized Impairment Losses in the Consolidated Statements of Income (Loss) for the year ended December 31, 2023 primarily related to investments in Equity Securities at Modified Cost where the Company has the intent or requirement to sell.
Previous report
Real Estate
Previous report
The Company recognized Impairment Losses on Real Estate Held for Investment in the Consolidated Statements of Income (Loss) for the year ended December 31, 2024 related to properties held with the intent to sell.
Previous report
The Company did not recognize any Impairment Losses on Real Estate Held for Investment in the Consolidated Statements of Income (Loss) for the year ended December 31, 2023.
Previous report
Acquisition and Disposition Related Transaction, Integration, Restructuring and Other Costs for the year ended December 31, 2024 included $35.9 million of integration expenses due to continued investments in information technology. These expenses for the year ended December 31, 2023 included $60.4 million of integration expenses due to continued investments in information technology, $34.6 million of real estate exit costs resulting from impairments on operating leases and real estate owned and $9.9 million of accrued severance.
Previous report
Other Corporate Costs for the year ended December 31, 2024 included $7.3 million of expense related to the reversion of assets within the pension trust. This activity included $4.7 million distributed to eligible participants in the Company’s defined contribution benefit plans and $2.6 million of excise taxes paid by the Company upon the reversion of the remaining assets.
Previous report
Interest expense increased by $0.8 million in 2024 compared to 2023.
Previous report
Goodwill Impairment
Previous report
Goodwill Impairment for the year ended December 31, 2023 was due to the impairment of goodwill related to the decision to exit the Preferred Property & Casualty Insurance segment in the third quarter of 2023. See Note 15 “Goodwill and Intangibles,” to the Consolidated Financial Statements for more information.
Previous report
The Inflation Reduction Act (the "Law") was signed into law on August 16, 2022 and became generally effective on January 1, 2023. Included in the provisions of the Law are various changes to the tax code, including the establishment of a Corporate Alternative Minimum Tax (“CAMT”). The Company, at this time, is not subject to the CAMT.
Previous report
The total impairment of non-tax-deductible goodwill was zero in 2024, compared to $30.0 million in 2023.
Previous report
During the year ended December 31, 2024, Kemper repurchased and retired approximately 637,000 shares of its common stock under its share repurchase authorization for an aggregate cost of $38.9 million and an average cost per share of $61.12. Kemper did not repurchase any shares during the year ended December 31, 2023.
Previous report
Net cash provided by Operating Activities was $382.9 million in 2024, compared to $134.2 million used in 2023, an increase of $517.1 million. The increase in cash provided by Operating Activities was primarily driven by increased net income as a result of rate increases, lower paid claims due to lower frequency, and timing of payments within our Property and Casualty operations. Additionally, cash from operations for 2023 included a $124.7 million federal income tax refund received.
Previous report
Net cash used in Investing Activities was $244.4 million in 2024, compared to $107.9 million provided by in 2023, a year over year decrease of $352.3 million. The decrease in cash provided by Investing Activities was primarily driven by the ongoing management of our investment portfolio that was impacted by timing of claim payments and premium collections from our Property and Casualty operations.
Previous report
Net Cash (Used in) Provided by Financing Activities
Previous report
The Company’s portfolio also includes investments in Alternative Energy Partnerships that are accounted for under the Hypothetical Liquidation at Book Value (“HLBV”) method. Under the HLBV method, the amounts of income and loss attributed to investors reflect changes in the amounts the fund investors would hypothetically receive at each balance sheet date under the liquidation provisions of the contractual agreements of these funds. Attributing income and loss under the HLBV method requires the use of significant assumptions and forecasts to calculate the amounts that fund investors would receive upon a hypothetical liquidation. See Note 1 “Basis of Presentation and Significant Estimates” to the Consolidated Financial Statements for additional information.
Previous report
Life Insurance Reserves by business segment at December 31, 2024 and 2023 were:
Previous report
The Company performed a qualitative goodwill impairment assessment for all remaining reporting units with goodwill as of October 1, 2024. The qualitative assessment takes into consideration changes in the macroeconomic conditions, industry and market considerations, cost factors, overall financial performance, changes in management or key personnel, changes in strategy, events impacting reporting units, and changes in Kemper’s stock price since the last quantitative assessment, which was performed on October 1, 2022.
Reworded paragraphs (57)
Previous wording
Net Realized Investment Gains (Losses) increased by $31.8 million in 2024, compared to 2023, due primarily to the absence of net realized losses on ultra-long treasury future derivative transactions recorded in 2023 and increased gains on sales of fixed maturity investments.
Current wording
Net Realized Investment Gains (Losses) decreased by $7.7 million in 2025, compared to 2024, due primarily to decreased gains on sales of fixed maturity and equity securities, partially offset by the absence of net realized losses on ultra-long treasury future derivatives transactions that did not qualify for hedge accounting.
Previous wording
The Company primarily manages its exposure to catastrophes and other natural disasters through a combination of geographical diversification, restrictions on the amount and location of new business production in such regions, modifications of, and/or limitations to coverages and deductibles for certain perils in such regions and a catastrophe reinsurance program for the Company’s Property & Casualty Insurance business. Coverage under the catastrophe reinsurance program is provided in various contracts and layers. The Company’s Property & Casualty Insurance business also purchase reinsurance from the FHCF for hurricane losses in Florida at retentions lower than its catastrophe reinsurance program.
Current wording
The Company primarily manages its exposure to catastrophes and other natural disasters through a combination of geographical diversification, restrictions on the amount and location of new business production in such regions, modifications of, and/or limitations to coverages and deductibles for certain perils in such regions and a catastrophe reinsurance program for the Company’s Property & Casualty Insurance business. Coverage under the catastrophe reinsurance program is provided in various contracts and layers. The Company’s Property & Casualty Insurance business also purchases reinsurance from the FHCF for hurricane losses in Florida at retentions lower than its catastrophe reinsurance program.
Previous wording
The Specialty Property & Casualty Insurance segment reported Total Segment Adjusted Net Operating Income of $376.3 million for the year ended December 31, 2024, compared to Total Segment Adjusted Net Operating Loss of $57.1 million in 2023. Segment adjusted net operating results improved by $433.4 million that included a $375.5 million and $57.9 million increase from personal automobile and commercial vehicle insurance, respectively, due primarily to higher average earned premiums per exposure resulting from rate increases, lower underlying claim frequency, and lower adverse prior year development.
Current wording
The Specialty Property & Casualty Insurance segment reported Total Segment Adjusted Net Operating Income of $187.1 million for the year ended December 31, 2025, compared to Total Segment Adjusted Net Operating Income of $376.3 million in 2024. Segment adjusted net operating results decreased by $189.2 million which included a $166.2 million decrease from personal automobile insurance and a $23.0 million decrease from commercial automobile insurance. The decrease in personal automobile Adjusted Net Operating Income was primarily driven by higher underlying losses. The decrease in commercial automobile insurance Adjusted Net Operating Income was primarily driven by higher adverse prior year development.
Previous wording
Net Investment Income in the Specialty Property & Casualty Insurance segment increased by $21.3 million in 2024, compared to 2023, due primarily to higher levels of Fixed Income Securities, higher rates earned on and level of Short-term investments and Company-Owned Life Insurance.
Current wording
Net Investment Income in the Specialty Property & Casualty Insurance segment increased by $21.6 million in 2025, compared to 2024, due primarily to higher levels of invested assets resulting from growth.
Previous wording
Incurred Loss and LAE were $2,541.7 million or 71.1% of earned premiums for the year ended December 31, 2024 compared to $3,141.9 million or 86.5% of earned premiums, in 2023. Incurred losses and LAE as a percentage of earned premiums decreased primarily due to an improvement in the underlying loss and LAE ratio, lower adverse prior year development and lower catastrophe losses. Underlying losses and LAE as a percentage of earned premiums were 70.3% in 2024, an improvement of 11.7 percentage points, compared to 2023, driven by higher average earned premium per exposure (21.7% increase year over year) resulting from rate increases and lower underlying claims frequency, partially offset by higher claims average severity. Underlying losses and LAE exclude the impact of catastrophes and loss and LAE reserve development. Adverse loss and LAE reserve development (including catastrophe reserve development) was $7.0 million for 2024 compared to adverse development of $132.9 million for 2023 due primarily to normalization in loss patterns within personal injury protection, physical damage, and bodily injury coverages. Catastrophe losses and LAE (excluding reserve development) were $19.9 million for 2024 compared to $34.5 million for 2023, a decrease of $14.6 million due to lower average severity per catastrophe event.
Current wording
Incurred Loss and LAE were $3,077.2 million or 78.4% of earned premiums for the year ended December 31, 2025, compared to $2,541.7 million or 71.1% of earned premiums, in 2024. Incurred losses and LAE as a percentage of earned premiums increased primarily due to a deterioration in the underlying loss and LAE ratio and adverse prior year development in commercial automobile. Underlying losses and LAE as a percentage of earned premiums were 76.2% in 2025, a deterioration of 5.9 percentage points, compared to 2024, due to higher claim severity primarily related to bodily injury and property damage coverages, partially offset by higher average earned premiums per exposure (10.8% increase year over year). Underlying losses and LAE exclude the impact of catastrophes and loss and LAE reserve development. Adverse loss and LAE reserve development (including catastrophe reserve development) was $74.6 million for 2025 compared to adverse development of $7.0 million for 2024 an increase of $67.6 million due primarily to evolving loss patterns on bodily injury coverages in commercial automobile and higher than expected development on litigated matters. Catastrophe losses and LAE (excluding reserve development) were $11.5 million for 2025 compared to $19.9 million for 2024, a decrease of $8.4 million due to fewer catastrophe events and lower severity per event in 2025.
Previous wording
Insurance Expenses were $759.5 million, or 21.2% of earned premiums, for the year ended December 31, 2024, compared to $741.3 million, or 20.4% of earned premiums in 2023. Insurance Expenses increased $18.2 million due to higher volume-related expenses associated with increased new business volumes. As a percentage of earned premiums, Insurance Expenses increased 0.8% as expense increases outpaced earned premium growth.
Current wording
Insurance Expenses were $836.6 million, or 21.3% of earned premiums, for the year ended December 31, 2025, compared to $759.5 million, or 21.2% of earned premiums in 2024. Insurance Expenses increased $77.1 million due to higher expenses associated with increased business volumes.
Previous wording
The Specialty Property & Casualty Insurance segment’s 2024 effective tax rate was 20.1%, compared to 25.3% in 2023. The effective income tax rate for 2024 and 2023 differs from the federal statutory income tax rate primarily due to investments in Company-Owned Life Insurance, Tax-Exempt Investment Income and Dividends Received Deductions. The change in the effective tax rate from 2023 is driven by an increased benefit from Company-Owned Life Insurance.
Current wording
The Specialty Property & Casualty Insurance segment’s 2025 effective tax rate was 19.4%, compared to 20.1% in 2024. The effective income tax rate for 2025 and 2024 differs from the federal statutory income tax rate primarily due to investments in Company-Owned Life Insurance, tax-exempt investment income and an increase in nondeductible executive compensation.
Previous wording
Earned Premiums in personal automobile insurance decreased by $126.4 million in 2024, compared to 2023, due to lower average business volumes driven by targeted pricing and underwriting actions to improve profitability, partially offset by higher average earned premium per exposure resulting from rate increases. Incurred losses and LAE were $1,999.0 million, or 70.1% of earned premiums, in 2024, compared to $2,602.3 million, or 87.4% of earned premiums, in 2023. Incurred losses and LAE as a percentage of earned premiums decreased primarily due to an improvement in the underlying loss and LAE ratio, lower adverse prior year development, and lower catastrophe losses. Underlying losses and LAE as a percentage of related earned premiums were 69.6% in 2024, compared to 82.8% in 2023, an improvement of 13.2 percentage points driven by higher average earned premiums per exposure resulting from rate increases and a lower frequency of claims, partially offset by higher claims average severity trends. Favorable loss and LAE reserve development was $0.2 million in 2024, compared to adverse loss and LAE reserve developments of $108.7 million in 2023, an improvement of $108.9 million due primarily to stabilization of loss patterns. Catastrophe losses and LAE (excluding reserve development) were $14.5 million in 2024 compared to $29.6 million in 2023, an improvement of $15.1 million mainly due to lower average severity per catastrophe event.
Current wording
Earned Premiums in personal automobile insurance increased by $173.5 million in 2025, compared to 2024, primarily due to higher average earned premiums per exposure resulting from rate increases. Incurred losses and LAE were $2,343.7 million, or 77.5% of earned premiums, in 2025, compared to $1,999.0 million, or 70.1% of earned premiums, in 2024. Incurred losses and LAE as a percentage of earned premiums increased due to deterioration in the underlying loss and LAE ratio. Underlying losses and LAE as a percentage of related earned premiums were 77.2% in 2025, compared to 69.6% in 2024, a deterioration of 7.6 percentage points driven by higher claim severity and frequency primarily related to bodily injury and property damage coverages that were offset by higher average earned premiums per exposure (10.1% increase year over year). Favorable loss and LAE reserve development was $1.9 million in 2025, compared to favorable loss and LAE reserve development of $0.2 million in 2024, an improvement of $1.7 million due primarily to stabilization of loss patterns in bodily injury coverages, partially offset by less favorable development on personal injury protection and collision coverages and higher losses associated with litigated matters. Catastrophe losses and LAE (excluding reserve development) were $8.7 million in 2025 compared to $14.5 million in 2024, an improvement of $5.8 million due to fewer catastrophe events and lower severity in 2025.
Previous wording
Earned premiums from commercial automobile insurance increased by $70.3 million in 2024, compared to 2023, due primarily to higher average earned premium per exposure resulting from rate increases and targeted mix shifts. Incurred losses and LAE were $542.7 million, or 74.9% of earned premiums, in 2024, compared to $539.6 million, or 82.4% of earned premiums, in 2023. Incurred losses and LAE as a percentage of earned premiums decreased primarily due to an improvement in the underlying loss ratio and lower adverse prior year development. Underlying losses and LAE as a percentage of earned premiums were 73.2% in 2024, compared to 78.0% in 2023, an improvement of 4.8 percentage points due primarily to higher average earned premiums per exposure resulting from rate increases and mix shifts and a lower frequency of claims, partially offset by higher claims average severity trends. Adverse loss and LAE reserve development was $7.2 million in 2024, compared to adverse development of $24.2 million in 2023, an improvement of $17.0 million due primarily to stabilization of loss patterns.
Current wording
Earned premiums from commercial automobile insurance increased by $175.8 million in 2025, compared to 2024, due primarily to higher average earned premiums per exposure resulting from rate increases and targeted mix shifts, and higher business volumes. Incurred losses and LAE were $733.5 million, or 81.4% of earned premiums, in 2025, compared to $542.7 million, or 74.9% of earned premiums, in 2024. Incurred losses and LAE as a percentage of earned premiums increased primarily due to adverse prior year development. Underlying losses and LAE as a percentage of earned premiums were 72.6% in 2025, compared to 73.2% in 2024, an improvement of 0.6 percentage points driven by lower claim frequency and higher average earned premium (8.2% increase year over year), partially offset by increased claim severity, primarily related to bodily injury coverages. Adverse loss and LAE reserve development was $76.5 million in 2025, compared to adverse development of
Previous wording
The Life Insurance Segment reported Total Segment Adjusted Net Operating Income of $50.2 million in 2024, compared to $51.8 million in 2023. The decrease in segment net operating results was primarily due to a reduction in net investment income, partially offset by favorable mortality experience from life insurance products.
Current wording
The Life Insurance Segment reported Total Segment Adjusted Net Operating Income of $68.5 million in 2025, compared to $50.2 million in 2024. The increase in segment net operating results was primarily due to an increase in net investment income, lower Insurance Expenses, and lower incurred losses and LAE on property insurance products.
Previous wording
Earned Premiums increased by $6.3 million for the year ended December 31, 2024, compared to 2023, due primarily to changes in assumptions as part of the annual assumption update for Deferred Profit Liability in 2024 ($4.8 million reduction in Earned Premiums) as compared to 2023 ($15.0 million reduction in Earned Premiums). Excluding this impact, Earned Premiums decreased by $3.9 million due primarily to lower volume on life and property insurance.
Current wording
Earned Premiums decreased by $0.5 million for the year ended December 31, 2025, compared to 2024, due primarily to changes in assumptions as part of the annual assumption update for Deferred Profit Liability in 2025 ($6.3 million reduction in Earned Premiums) as compared to 2024 ($4.8 million reduction in Earned Premiums). Excluding this impact, Earned Premiums increased by $1.0 million due primarily to higher average premiums per policy on life insurance products.
Previous wording
Policyholders’ Benefits and Incurred Losses and LAE decreased by $8.9 million in 2024, compared to 2023. Changes in assumptions from the annual assumption update reduced policyholders’ benefits and incurred losses and LAE by $11.9 million and $23.3 million in 2024 and 2023, respectively. Excluding this impact, Policyholders’ Benefits and Incurred Losses and LAE
Current wording
Policyholders’ Benefits and Incurred Losses and LAE increased by $4.2 million in 2025, compared to 2024. Changes in assumptions from the annual assumption update reduced Policyholders’ Benefits and Incurred Losses and LAE by $9.3 million
Previous wording
Insurance Expenses were $1,113.9 million in 2024 compared to $1,163.7 million in 2023. Insurance Expenses decreased by $49.8 million in 2024 due primarily to lower policies in force.
Current wording
Insurance Expenses decreased by $7.7 million in 2025, compared to 2024, due primarily to lower commission expense.
Previous wording
The Life Insurance segment’s 2024 effective income tax rate was 14.9% compared to 16.9% in 2023. The effective income tax rate for 2024 and 2023 differs from the federal statutory income tax rate primarily due to investments in Company-Owned Life Insurance and Tax-Exempt Investment Income. The decrease in the effective tax rate from 2023 is driven by an increased benefit from Company-Owned Life Insurance.
Current wording
The Life Insurance segment’s 2025 effective income tax rate was 14.6% compared to 14.9% in 2024. The effective income tax rate for 2025 and 2024 differs from the federal statutory income tax rate primarily due to investments in Company-Owned Life
Previous wording
Net Investment Income was $407.5 million and $419.7 million for the years ended December 31, 2024 and 2023, respectively. Net Investment Income decreased by $12.2 million in 2024 mostly driven by lower earnings from equity method securities, which included a $15.1 million loss from an investment valuation adjustment of one real estate investment in our alternative investment portfolio, and lower levels of fixed income securities, partially offset by higher levels of Short-term Investments.
Current wording
Net Investment Income was $405.0 million and $407.5 million for the years ended December 31, 2025 and 2024, respectively. Net Investment Income decreased by $2.5 million in 2025, mostly driven by lower levels and yields from Short-term investments and fixed maturity securities, partially offset by higher earnings on Company-Owned Life Insurance and dividends on equity securities.
Previous wording
The change in unrealized losses on investments for the year ended December 31, 2024 was an increase of $200.0 million, primarily attributable to increases in interest rates.
Current wording
Unrealized losses on investments decreased $163.0 million for the year ended December 31, 2025, primarily due to decreases in interest rates.
Previous wording
The Company regularly reviews its investment portfolio to determine whether a decline in the fair value of an investment has occurred from credit or other, non-credit related factors. If the decline in fair value is due to credit factors and the Company does not expect to receive cash flows sufficient to support the entire amortized cost basis, the credit loss is reported in the Consolidated Statements of Income (Loss) in the period that the declines are evaluated. Conversely, an increase in the fair value or disposal of an investment with a previously established credit allowance will result in the reversal of impairment losses reported in the Consolidated Statements of Income (Loss) in the period.
Current wording
The Company regularly reviews its investment portfolio to determine whether a decline in the fair value of an investment has occurred from credit or other, non-credit related factors. If the decline in fair value is due to credit factors and the Company does not expect to receive cash flows sufficient to support the entire amortized cost basis, the credit loss is reported in the Consolidated Statements of Income (Loss) in the period that the declines are evaluated. Conversely, an increase in the fair value
Previous wording
IIncludes losses from intent-to-sell securities and direct write-down securities of $3.3 million, $2.0 million and $23.8 million for the years ended December 31, 2024, 2023 and 2022, respectively.
Current wording
IIncludes losses from intent-to-sell securities and direct write-down securities of $1.1 million, $3.3 million and $2.0 million for the years ended December 31, 2025, 2024 and 2023, respectively.
Previous wording
Impairment Losses recognized in the Consolidated Statements of Income (Loss) for the year ended December 31, 2023 related primarily to investments in Intent-to-Sell securities.
Current wording
Impairment Losses recognized in the Consolidated Statements of Income (Loss) for the year ended December 31, 2024 related primarily to investments in securities with direct write-downs and in Fixed Maturities where the Company established an allowance for expected credit losses.
Previous wording
The Company’s fixed maturity investment portfolio is comprised primarily of high-grade corporate, municipal and agency bonds. At December 31, 2024, approximately 95.7% of the Company’s fixed maturity investment portfolio was rated investment-grade, which the Company defines as a security issued by a high quality obligor with at least a relatively stable credit profile and where it is highly likely that all contractual payments of principal and interest will timely occur and carry a rating from the National Association of Insurance Commissioners (“NAIC”) of 1 or 2. Securities with a rating of 1 or 2 from the NAIC typically are rated by one or more Nationally Recognized Statistical Rating Organizations and either have a rating of AAA, AA, A or BBB from Standard & Poor’s (“S&P”); a rating of Aaa, Aa, A or Baa from Moody’s Investors Service (“Moody’s”); or a rating of AAA, AA, A or BBB from Fitch Ratings.
Current wording
The Company’s fixed maturity investment portfolio is comprised primarily of high-grade corporate, municipal and agency bonds. At December 31, 2025, approximately 93.8% of the Company’s fixed maturity investment portfolio was rated investment-grade, which the Company defines as a security issued by a high quality obligor with at least a relatively stable credit profile and where it is highly likely that all contractual payments of principal and interest will timely occur and carry a rating from the National Association of Insurance Commissioners (“NAIC”) of 1 or 2. Securities with a rating of 1 or 2 from the NAIC typically are rated by one or more Nationally Recognized Statistical Rating Organizations and either have a rating of AAA, AA, A or BBB from Standard & Poor’s (“S&P”); a rating of Aaa, Aa, A or Baa from Moody’s Investors Service (“Moody’s”); or a rating of AAA, AA, A or BBB from Fitch Ratings.
Previous wording
The following table summarizes the credit quality of the Company’s fixed maturity investment portfolio at December 31, 2024 and 2023.
Current wording
The following table summarizes the credit quality of the Company’s fixed maturity investment portfolio at December 31,2025 and 2024.
Previous wording
Gross unrealized losses on the Company’s investments in below-investment-grade fixed maturities were $14.2 million and $25.5 million at December 31, 2024 and 2023, respectively.
Current wording
Gross unrealized losses, net of CECL allowance, on the Company’s investments in below-investment-grade fixed maturities were $13.6 million and $14.2 million at December 31, 2025 and 2024, respectively.
Previous wording
The following table summarizes the fair value of the Company’s investments in non-governmental fixed maturities by range of amount invested at December 31, 2024.
Current wording
The following table summarizes the fair value of the Company’s investments in non-governmental fixed maturities by range of amount invested at December 31,2025.
Previous wording
The Company’s short-term investments primarily consist of U.S. Treasury bills, short-term bonds, and money market funds. At December 31, 2024, the Company had $834.7 million invested in U.S. Treasury bills and short-term bonds and $202.4 million invested in money market funds, which primarily invest in U.S. Treasury securities.
Current wording
The Company’s short-term investments primarily consist of U.S. Treasury bills, short-term bonds, and money market funds. At December 31, 2025, the Company had $94.4 million invested in U.S. Treasury bills and short-term bonds and $233.4 million invested in money market funds, which primarily invest in U.S. Treasury securities.
Previous wording
The Company owns investments in various limited liability investment companies and limited partnerships that primarily invest in mezzanine debt, senior debt, real estate and leveraged buyouts. The Company’s investments in these limited liability investment companies and limited partnerships are reported either as Equity Method Limited Liability Investments, Other Equity Interests included in Equity Securities at Fair Value, or Equity Securities at Modified Cost, depending on the accounting method used to report the investment. Additional information pertaining to these investments at December 31, 2024 and 2023 is presented below.
Current wording
The Company owns investments in various limited liability investment companies and limited partnerships that primarily invest in senior debt and mezzanine debt. The Company’s investments in these limited liability investment companies and limited partnerships are reported either as Equity Method Limited Liability Investments, Other Equity Interests included in Equity Securities at Fair Value, or Equity Securities at Modified Cost, depending on the accounting method used to report the investment. Additional information pertaining to these investments at December 31, 2025 and 2024 is presented below.
Previous wording
Other Expenses decreased by $135.7 million in 2024, compared to 2023, due primarily to lower Acquisition and Disposition Related Transaction, Integration, Restructuring and Other Costs from the completion of certain strategic initiatives and lower costs in connection with the 2023 cost structure optimization initiatives, and lower Pension Settlement costs.
Current wording
Other Expenses decreased by $18.6 million in 2025, compared to 2024, primarily due to lower Other Corporate Costs driven by reduced legal and pension-related expenses, as well as lower Acquisition and Disposition Related Transactions, Integration, Restructuring, and Other Costs following the completion of certain strategic initiatives. These decreases were slightly offset by a reduction in pension settlement gains.
Previous wording
The federal corporate statutory income tax rate was 21% for the year ended December 31, 2024, 2023 and 2022. The Company’s effective income tax rate, which was 19.6%, 21.6% and 22.7% for 2024, 2023, and 2022 respectively, differs from the federal corporate income tax rate due primarily to (1) the effects of tax-exempt investment income, (2) nontaxable income associated with the change in cash surrender value on Company-Owned Life Insurance, (3) Alternative Energy Partnership Investment and general business tax credits, (4) a permanent difference between the amount of long-term equity-based compensation expense recognized under GAAP and the amount deductible in the computation of Federal taxable income (5) a permanent difference associated with nondeductible executive compensation, (6) an impairment of non-tax deductible goodwill, (7) impact of deferred taxes in foreign jurisdictions, and (8) a change in valuation allowance.
Current wording
The federal corporate statutory income tax rate was 21% for the year ended December 31, 2025, 2024 and 2023. The Company’s effective income tax rate, which was 17.5%, 19.6% and 21.6% for 2025, 2024, and 2023 respectively, differs from the federal corporate income tax rate due primarily to (1) the effects of tax-exempt investment income, (2) nontaxable income associated with the change in cash surrender value on Company-Owned Life Insurance, (3) general business tax credits, (4) a permanent difference between the amount of long-term equity-based compensation expense recognized under GAAP and the amount deductible for Federal tax purposes, (5) a permanent difference associated with nondeductible executive compensation, (6) an impairment of non-tax deductible goodwill, (7) impact of deferred taxes in foreign jurisdictions, and (8) a change in valuation allowance related to foreign deferred assets.
Previous wording
On December 27, 2023, legislation implementing a corporate income tax (“CIT”) in Bermuda was enacted into law. The CIT imposes a 15% income tax that applies to Bermuda businesses which are part of multinational enterprise groups with annual revenue of €750 million or more and will be effective for fiscal years beginning on or after January 1, 2025, with a five-year deferred effective date for certain groups with a limited international footprint. Kemper has recorded, as part of its total income tax provision, the estimated impact of the Bermuda CIT on its Bermuda based reinsurance company at the effective date. The Company will continue to monitor guidance as it is released from the Government of Bermuda.
Current wording
On December 27, 2023, legislation implementing a corporate income tax (“CIT”) in Bermuda was enacted into law. The CIT imposes a 15% income tax that applies to Bermuda businesses which are part of multinational enterprise groups with annual revenue of €750 million or more and will be effective for fiscal years beginning on or after January 1, 2025, with a five-year deferred effective date for certain groups with a limited international footprint. Kemper has recorded, as part of its total income tax provision, the estimated impact of the Bermuda CIT on its Bermuda based reinsurance company at the effective date.
Previous wording
Tax-exempt investment income and dividends received deductions were $16.0 million in 2024, compared to $22.7 million in 2023.
Current wording
Tax-exempt investment income and dividends received deductions were $15.0 million in 2025, compared to $16.0 million in 2024.
Previous wording
The nontaxable increase in cash surrender value on Company-Owned Life Insurance was $35.6 million in 2024, compared to $29.2 million in 2023.
Current wording
The nontaxable increase in cash surrender value on Company-Owned Life Insurance was $42.9 million in 2025, compared to $35.6 million in 2024.
Previous wording
The Company realized investment tax credits and other federal income tax credits of $12.0 million in 2024, compared to realized investment tax credits and other federal tax credits of $3.1 million in 2023.
Current wording
The Company realized investment tax credits and other federal income tax credits of $3.3 million in 2025, compared to realized investment tax credits and other federal tax credits of $12.0 million in 2024.
Previous wording
The amount of expense recognized for long-term equity-based compensation expense under GAAP was $0.5 million lower than the amount that would be deductible under the IRC in 2024, compared to $1.4 million higher in 2023.
Current wording
The amount of expense recognized for long-term equity-based compensation expense under GAAP was $3.0 million lower than the amount that would be deductible under the IRC in 2025, compared to $0.5 million lower in 2024.
Previous wording
The amount of nondeductible executive compensation was $16.8 million in 2024, compared to $8.5 million in 2023.
Current wording
The amount of nondeductible executive compensation was $32.0 million in 2025, compared to $16.8 million in 2024.
Previous wording
As a result of recently enacted tax legislation in jurisdictions in which the Company operates, a tax benefit of $11.3 million was recorded in 2024, compared to a tax benefit of $27.4 million in 2023.
Current wording
Tax expense of $0.7 million was recorded in 2025, compared to a tax benefit of $11.3 million in 2024 related to income taxes imposed in the foreign jurisdiction in which the Company operates.
Previous wording
The Company recorded an increase in valuation allowance of $11.3 million in 2024, compared to $27.4 million in 2023 for those foreign deferred tax assets it determined were not more-likely-than-not to be realized.
Current wording
The Company recorded a decrease in valuation allowance of $0.7 million in 2025, compared to an increase of $11.3 million in 2024 for those foreign deferred tax assets it determined were not more-likely-than-not to be realized.
Previous wording
On March 15, 2022, the Company entered into an amended and extended credit agreement. The amended and extended credit agreement increased the borrowing capacity of the existing unsecured credit agreement to $600.0 million and extended the maturity date to March 15, 2027. Furthermore, the amended and extended credit agreement provides for an accordion feature whereby the Company can increase the revolving credit borrowing capacity by an additional $200.0 million for a total of maximum capacity of $800.0 million. Financial covenants within the agreement limit the Company from accessing the maximum capacity. The amount available as of December 31, 2024 was $512.0 million. There wereno outstanding borrowings under the credit agreement on either December 31, 2024 or December 31, 2023.
Current wording
On March 15, 2022, the Company entered into an amended and extended credit agreement. The amended and extended credit agreement increased the borrowing capacity of the existing unsecured credit agreement to $600.0 million and extended the maturity date to March 15, 2027. Furthermore, the amended and extended credit agreement provides for an accordion feature whereby the Company can increase the revolving credit borrowing capacity by an additional $200.0 million for a total of maximum capacity of $800.0 million.
Previous wording
Kemper is authorized to issue 20 million shares of $0.10 par value preferred stock and 100 million shares of $0.10 par value common stock. No preferred shares were issued or outstanding at December 31, 2024 and 2023. There were 63,840,442 shares and 64,111,555 shares of common stock outstanding at December 31, 2024 and 2023, respectively.
Current wording
Kemper is authorized to issue 20 million shares of $0.10 par value preferred stock and 100 million shares of $0.10 par value common stock. No preferred shares were issued or outstanding at December 31, 2025 and 2024. There were 58,666,644 shares and 63,840,442 shares of common stock outstanding at December 31, 2025 and 2024, respectively.
Previous wording
Kemper’s subsidiaries, United Insurance Company of America (“United Insurance”), Trinity Universal Insurance Company (“Trinity”), and American Access Casualty Company (“AAC”) are members of the Federal Home Loan Banks (“FHLBs”) of Chicago, Dallas and Chicago, respectively. AAC became a member of the FHLB of Chicago in May 2022. United Insurance and Trinity became members of the FHLBs of Chicago and Dallas, respectively, in 2013. Under their memberships, United Insurance, Trinity and AAC may borrow through the advance program of their respective FHLB. The Company’s investments in FHLB common stock are reported at cost and included in Other Investments. The carrying value of FHLB of Chicago common stock was $16.9 million and $16.6 million at December 31, 2024 and December 31, 2023, respectively. The carrying value of FHLB of Dallas common stock was $8.8 million and $3.6 million at December 31, 2024 and December 31, 2023, respectively. The Company periodically uses short-term FHLB borrowings for a combination of cash management and risk management purposes, in addition to long-term FHLB borrowings for spread lending purposes.
Current wording
Kemper’s subsidiaries, United Insurance Company of America (“United Insurance”), Trinity Universal Insurance Company (“Trinity”), and American Access Casualty Company (“AAC”) are members of the Federal Home Loan Banks (“FHLBs”) of Chicago, Dallas and Chicago, respectively. AAC became a member of the FHLB of Chicago in May 2022. United Insurance and Trinity became members of the FHLBs of Chicago and Dallas, respectively, in 2013. Under their memberships, United Insurance, Trinity and AAC may borrow through the advance program of their respective FHLB. The Company’s investments in FHLB common stock are reported at cost and included in Other Investments. The carrying value of FHLB of Chicago common stock was $17.7 million and $16.9 million at December 31, 2025 and December 31, 2024, respectively. The carrying value of FHLB of Dallas common stock was $2.1 million and $8.8 million at December 31, 2025 and December 31, 2024, respectively. The Company periodically uses short-term FHLB borrowings for a combination of cash management and risk management purposes, in addition to long-term FHLB borrowings for spread lending purposes.
Previous wording
During 2024, United Insurance received advances of $101.7 million from the FHLB of Chicago and made repayments of $117.8 million. United Insurance had outstanding advances from the FHLB of Chicago totaling $541.3 million at December 31, 2024. These advances were made in connection with the Company’s spread lending program. The proceeds related to these advances were used to purchase fixed maturity securities to earn incremental net investment income.
Current wording
During 2025, United Insurance received advances of $30.0 million from the FHLB of Chicago and made repayments of $57.4 million. United Insurance had outstanding advances from the FHLB of Chicago totaling $513.8 million at December 31, 2025. These advances were made in connection with the Company’s spread lending program. The proceeds related to these advances were used to purchase fixed maturity securities to earn incremental net investment income.
Previous wording
For these advances, United Insurance held pledged securities in a custodial account with the FHLB of Chicago with a fair value of $619.3 million at December 31, 2024. The fair value of the collateral pledged must be maintained at certain specified levels above the borrowed amount, which can vary depending on the assets pledged. If the fair value of the collateral declines below these specified levels of the amount borrowed, United Insurance would be required to pledge additional collateral or repay outstanding borrowings. See Note 23, “Policyholder Obligations,” to the Consolidated Financial Statements for additional information about the United Insurance advances and related funding agreements.
Current wording
For these advances, United Insurance held pledged securities in a custodial account with the FHLB of Chicago with a fair value of $661.3 million at December 31, 2025. The fair value of the collateral pledged must be maintained at certain specified levels above the borrowed amount, which can vary depending on the assets pledged. If the fair value of the collateral declines below these specified levels of the amount borrowed, United Insurance would be required to pledge additional collateral or repay outstanding borrowings. See Note 22, “Policyholder Obligations,” to the Consolidated Financial Statements for additional information about the United Insurance advances and related funding agreements.
Showing the first 40 of 57 pairs. Open the source sections for the rest.
Rearranged current paragraphs (6)
Current report — wording carried from elsewhere
and $11.9 million in 2025 and 2024, respectively. Excluding this impact, Policyholders’ Benefits and Incurred Losses and LAE increased $1.6 million.
Current report — wording carried from elsewhere
Insurance and Tax-Exempt Investment Income. The decrease in the effective tax rate from 2024 was driven by an increase in income from Company-Owned Life Insurance, partially offset by an increase in pre-tax income.
Current report — wording carried from elsewhere
or disposal of an investment with a previously established credit allowance will result in the reversal of impairment losses reported in the Consolidated Statements of Income (Loss) in the period.
Current report — wording carried from elsewhere
Financial covenants within the agreement may limit the Company from accessing the maximum capacity. The amount available as of December 31, 2025 was $600.0 million, the maximum capacity. There wereno outstanding borrowings under the credit agreement as of either December 31, 2025 or December 31, 2024.
Current report — wording carried from elsewhere
Net Cash Provided by (Used in) Investing Activities
Current report — wording carried from elsewhere
Net Cash Used in Financing Activities
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
Accumulated Other Comprehensive Loss (“AOCI”) until realized. Both the reported and fair values of the Company’s investments in fixed maturities classified as available for sale were $6,409.6 million at December 31, 2024.