Cover Page
Cover Page - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2019 | Jan. 24, 2020 | Jun. 30, 2019 | |
Cover page. | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2019 | ||
Document Transition Report | false | ||
Entity File Number | 001-18298 | ||
Entity Registrant Name | Kemper Corporation | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 95-4255452 | ||
Entity Address, Address Line One | 200 E. Randolph Street | ||
Entity Address, Address Line Two | Suite 3300 | ||
Entity Address, City or Town | Chicago | ||
Entity Address, State or Province | IL | ||
Entity Address, Postal Zip Code | 60601 | ||
City Area Code | 312 | ||
Local Phone Number | 661-4600 | ||
Title of 12(b) Security | Common Stock, $0.10 par value per share | ||
Trading Symbol | KMPR | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 5.7 | ||
Entity Common Stock, Shares Outstanding (in shares) | 66,668,172 | ||
Documents Incorporated by Reference | Portions of the Proxy Statement for the 2020 Annual Meeting of Shareholders are incorporated by reference into Part III. | ||
Entity Central Index Key | 0000860748 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Revenues: | |||||||||||
Earned Premiums | $ 1,145.8 | $ 1,135.2 | $ 1,116.6 | $ 1,074.8 | $ 1,063.6 | $ 1,052.9 | $ 658.1 | $ 609.8 | $ 4,472.4 | $ 3,384.4 | $ 2,350 |
Net Investment Income | 93.9 | 91.7 | 96 | 82.7 | 91.3 | 92 | 78.4 | 79.2 | 364.3 | 340.9 | 327.2 |
Other Income | 3.7 | 7.2 | 22.7 | 1.9 | 2 | 37.8 | 1.2 | 1.2 | 35.5 | 42.2 | 4 |
Income (Loss) from Change in Fair Value of Equity and Convertible Securities | 39.2 | 9.8 | 25.5 | 64.4 | (76.4) | 11 | 0.4 | 0.7 | 138.9 | (64.3) | 0 |
Net Realized Gains on Sales of Investments | 2.8 | 1.7 | 21.3 | 16.1 | 16.4 | 3.6 | 3.8 | 2.6 | 41.9 | 26.4 | 56.5 |
Other-than-temporary Impairment Losses: | |||||||||||
Total Other-than-temporary Impairment Losses | (1.7) | (1.8) | (6.7) | (3.5) | (2.2) | (1.8) | 0 | (0.5) | (13.7) | (4.5) | (14.4) |
Portion of Gains (Losses) Recognized in Other Comprehensive Income | 0 | 0 | 0 | (0.1) | 0 | 0 | 0 | 0 | (0.1) | 0 | 0.1 |
Net Impairment Losses Recognized in Earnings | (1.7) | (1.8) | (6.7) | (3.6) | (2.2) | (1.8) | 0 | (0.5) | (13.8) | (4.5) | (14.3) |
Total Revenues | 1,283.7 | 1,243.8 | 1,275.4 | 1,236.3 | 1,094.7 | 1,195.5 | 741.9 | 693 | 5,039.2 | 3,725.1 | 2,723.4 |
Expenses: | |||||||||||
Policyholders’ Benefits and Incurred Losses and Loss Adjustment Expenses | 814.9 | 782.6 | 825.4 | 765.4 | 772.8 | 757.3 | 499.5 | 436.9 | 3,188.3 | 2,466.5 | 1,837.4 |
Insurance Expenses | 265.4 | 256 | 263.5 | 234.8 | 273.2 | 296 | 171.2 | 160.1 | 1,019.7 | 900.5 | 644.3 |
Loss from Early Extinguishment of Debt | 0 | 5.8 | 0 | 0 | 5.8 | 0 | 0 | ||||
Interest and Other Expenses | 46.5 | 37.9 | 38 | 41.4 | 42.6 | 61.7 | 25.7 | 29 | 163.8 | 159 | 80.6 |
Total Expenses | 1,126.8 | 1,082.3 | 1,126.9 | 1,041.6 | 1,088.6 | 1,115 | 696.4 | 626 | 4,377.6 | 3,526 | 2,562.3 |
Income from Continuing Operations before Income Taxes | 156.9 | 161.5 | 148.5 | 194.7 | 6.1 | 80.5 | 45.5 | 67 | 661.6 | 199.1 | 161.1 |
Income Tax Expense | (32.2) | (32.5) | (26.4) | (39.4) | (1.1) | 11.8 | (8) | (13.4) | (130.5) | (10.7) | (41.2) |
Income from Continuing Operations | 5 | 92.3 | 37.5 | 53.6 | 531.1 | 188.4 | 119.9 | ||||
Income from Discontinued Operations | 1.5 | (0.1) | 0.1 | 0.2 | 0 | 1.7 | 1 | ||||
Net Income | $ 124.7 | $ 129 | $ 122.1 | $ 155.3 | $ 6.5 | $ 92.2 | $ 37.6 | $ 53.8 | $ 531.1 | $ 190.1 | $ 120.9 |
Income from Continuing Operations Per Unrestricted Share: | |||||||||||
Basic (in dollars per share) | $ 0.08 | $ 1.42 | $ 0.73 | $ 1.03 | $ 8.04 | $ 3.22 | $ 2.32 | ||||
Diluted (in dollars per share) | 0.08 | 1.40 | 0.73 | 1.02 | 7.96 | 3.19 | 2.31 | ||||
Net Income Per Unrestricted Share: | |||||||||||
Basic (in dollars per share) | $ 1.87 | $ 1.93 | $ 1.87 | $ 2.38 | 0.10 | 1.42 | 0.73 | 1.03 | 8.04 | 3.25 | 2.34 |
Diluted (in dollars per share) | $ 1.85 | $ 1.91 | $ 1.84 | $ 2.35 | $ 0.10 | $ 1.40 | $ 0.73 | $ 1.02 | $ 7.96 | $ 3.22 | $ 2.33 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | |||||||||||
Net Income | $ 124.7 | $ 129 | $ 122.1 | $ 155.3 | $ 6.5 | $ 92.2 | $ 37.6 | $ 53.8 | $ 531.1 | $ 190.1 | $ 120.9 |
Other Comprehensive Income (Loss) Before Income Taxes: | |||||||||||
Unrealized Holding Gains (Losses) | 405.3 | (236.1) | 83.8 | ||||||||
Foreign Currency Translation Adjustments | 0 | 0.3 | 1.7 | ||||||||
Decrease (Increase) in Net Unrecognized Postretirement Benefit Costs | (7.8) | (6.9) | 3.3 | ||||||||
Gain (Loss) on Cash Flow Hedges | 0.4 | 1.2 | (6.7) | ||||||||
Other Comprehensive Income (Loss) Before Income Taxes | 397.9 | (241.5) | 82.1 | ||||||||
Other Comprehensive Income Tax Benefit (Expense) | (83.6) | 50.7 | (24.7) | ||||||||
Other Comprehensive Income (Loss) | 314.3 | (190.8) | 57.4 | ||||||||
Total Comprehensive Income (Loss) | $ 845.4 | $ (0.7) | $ 178.3 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Investments: | ||
Fixed Maturities at Fair Value (Amortized Cost: 2019 - $6,372.7; 2018 - $6,284.5) | $ 6,922,100,000 | $ 6,424,200,000 |
Equity Securities at Fair Value (Cost: 2019 - $818.8; 2018 - $720.8) | 907,300,000 | 684,400,000 |
Equity Securities at Modified Cost | 41,900,000 | 41,500,000 |
Equity Method Limited Liability Investments at Cost Plus Cumulative Undistributed Earnings | 220,400,000 | 187,000,000 |
Convertible Securities at Fair Value | 37,300,000 | 31,500,000 |
Short-term Investments at Cost which Approximates Fair Value | 470,900,000 | 286,100,000 |
Other Investments | 444,500,000 | 414,800,000 |
Total Investments | 9,044,400,000 | 8,069,500,000 |
Cash | 136,800,000 | 75,100,000 |
Receivables from Policyholders | 1,117,100,000 | 1,007,100,000 |
Other Receivables | 219,700,000 | 245,400,000 |
Deferred Policy Acquisition Costs | 537,700,000 | 470,000,000 |
Goodwill | 1,114,000,000 | 1,112,400,000 |
Current Income Tax Assets | 44,700,000 | 38,900,000 |
Other Assets | 774,700,000 | 526,500,000 |
Total Assets | 12,989,100,000 | 11,544,900,000 |
Insurance Reserves: | ||
Life and Health | 3,502,000,000 | 3,491,900,000 |
Property and Casualty | 1,969,800,000 | 1,874,900,000 |
Total Insurance Reserves | 5,471,800,000 | 5,366,800,000 |
Unearned Premiums | 1,545,500,000 | 1,424,300,000 |
Policyholder Contract Liabilities | 309,800,000 | 76,800,000 |
Deferred Income Tax Liabilities | 178,200,000 | 26,200,000 |
Liabilities for Unrecognized Tax Benefits | 0 | 4,400,000 |
Accrued Expenses and Other Liabilities | 733,100,000 | 687,300,000 |
Long-term Debt, Current and Non-current, at Amortized Cost (Fair Value: 2019 - $820.2; 2018 - $911.2) | 778,400,000 | 909,000,000 |
Total Liabilities | 9,016,800,000 | 8,494,800,000 |
Shareholders’ Equity: | ||
Common Stock, $0.10 Par Value Per Share, 100 Million Shares Authorized; 66,665,888 Shares Issued and Outstanding at December 31, 2019 and 64,756,833 Shares Issued and Outstanding at December 31, 2018 | 6,700,000 | 6,500,000 |
Paid-in Capital | 1,819,200,000 | 1,666,300,000 |
Retained Earnings | 1,810,300,000 | 1,355,500,000 |
Accumulated Other Comprehensive Income | 336,100,000 | 21,800,000 |
Total Shareholders’ Equity | 3,972,300,000 | 3,050,100,000 |
Total Liabilities and Shareholders’ Equity | $ 12,989,100,000 | $ 11,544,900,000 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Amortized cost of fixed maturities | $ 6,372.7 | $ 6,284.5 |
Cost of equity securities | 818.8 | 720.8 |
Debt | $ 820.2 | $ 911.2 |
Common stock, par value (in dollars per share) | $ 0.10 | $ 0.1 |
Common stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock, shares issued (in shares) | 66,665,888 | 64,756,833 |
Common stock, shares outstanding (in shares) | 66,665,888 | 64,756,833 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Operating Activities: | |||
Net Income | $ 531.1 | $ 190.1 | $ 120.9 |
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: | |||
Increase in Deferred Policy Acquisition Costs | (66.9) | (104.6) | (33.3) |
Amortization of Intangible Assets Acquired | 29.7 | 156.3 | 5.1 |
Equity in Earnings of Equity Method Limited Liability Investments | (1) | (11) | (24.8) |
Contribution to Defined Benefit Pension Plan | (55.3) | (5.1) | 0 |
Distribution of Accumulated Earnings of Equity Method Limited Liability Investments | 11.9 | 13.9 | 19.6 |
Decrease (Increase) in Value of Fair Value Option Investments reported in Investment Income | 0 | 0 | (1.3) |
Decrease (Increase) in Value of Equity and Convertible Securities at Fair Value | (138.9) | 64.3 | 0 |
Amortization of Investment Securities and Depreciation of Investment Real Estate | 0.5 | 7.7 | 16.7 |
Net Realized Gains on Sales of Investments | (41.9) | (26.4) | (56.5) |
Net Impairment Losses Recognized in Earnings | 13.8 | 4.5 | 14.3 |
Loss from Early Extinguishment of Debt | 5.8 | 0 | 0 |
Depreciation and Amortization of Property, Equipment and Software | 32.8 | 15.6 | 13.1 |
Increase in Receivables | (84.3) | (80.7) | (29.2) |
Increase in Insurance Reserves | 102.3 | 183.2 | 131.1 |
Increase in Unearned Premiums | 121.2 | 54.7 | 35.2 |
Change in Income Taxes | 58.8 | 13.1 | 28.9 |
Change in Accrued Expenses and Other Liabilities | (16) | 49.9 | 2.9 |
Other, Net | 30.7 | 13.7 | (2.1) |
Net Cash Provided by Operating Activities | 534.3 | 539.2 | 240.6 |
Investing Activities: | |||
Sales, Paydowns and Maturities of Fixed Maturities | 1,229.1 | 2,643.3 | 528.2 |
Purchases of Fixed Maturities | (1,284.9) | (2,413.2) | (710.1) |
Sales of Equity and Convertible Securities | 217.3 | 351.9 | 342 |
Purchases of Equity and Convertible Securities | (307) | (478.5) | (342.7) |
Acquisition and Improvements of Investment Real Estate | (1.4) | (1.5) | (1.5) |
Sales of Investment Real Estate | 0 | 0 | 26.7 |
Sale of and Return of Investment of Equity Method Limited Liability Investments | 29.5 | 14.1 | 48.1 |
Acquisitions of Equity Method Limited Liability Investments | (73.7) | (43.1) | (27.9) |
Sales of Fair Value Option Investments | 0 | 0 | 42.2 |
Purchases of Fair Value Option Investments | 0 | 0 | (7) |
Decrease (Increase) in Short-term Investments | (176) | 52.7 | 39.4 |
Acquisition of Business, Net of Cash Acquired | 0 | (560.6) | 0 |
Acquisitions of Mortgage Loans | (44.5) | 0 | 0 |
Paydowns of Mortgage Loans | 17.2 | 0 | 0 |
Increase in Other Investments | (0.1) | (2) | (4.5) |
Purchases of Corporate-owned Life Insurance | (150) | 0 | 0 |
Acquisition of Software and Long-lived Assets | (84) | (65.3) | (35.5) |
Other, Net | (4.9) | 4.6 | (2.8) |
Net Cash Used by Investing Activities | (633.4) | (497.6) | (105.4) |
Financing Activities: | |||
Net Proceeds from Issuance of Long-term Debt | 49.9 | 249.4 | 200.2 |
Repayment of Long-term Debt | (185) | (215) | (360) |
Proceeds from Policyholder Contract Liabilities | 615.8 | 11.4 | 3 |
Repayment of Policyholder Contract Liabilities | (383.6) | (2.5) | (2.9) |
Proceeds from Issuance of Common Stock, Net of Transaction Costs | 127.5 | 0 | 0 |
Dividends and Dividend Equivalents Paid | (67.8) | (56.4) | (49.5) |
Proceeds from Shares Issued under Employee Stock Purchase Plan | 1.6 | 0 | 0 |
Cash Exercise of Stock Options | 2.4 | 0.9 | 4 |
Net Cash Provided (Used) by Financing Activities | 160.8 | (12.2) | (205.2) |
Increase (Decrease) in Cash | 61.7 | 29.4 | (70) |
Cash, Beginning of Year | 75.1 | 45.7 | 115.7 |
Cash, End of Year | $ 136.8 | $ 75.1 | $ 45.7 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Shareholders’ Equity - USD ($) $ in Millions | Total | Common Stock | Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Previously Reported | Previously ReportedCommon Stock | Previously ReportedPaid-in Capital | Previously ReportedRetained Earnings | Previously ReportedAccumulated Other Comprehensive Income (Loss) | Cumulative Effect of Adoption of New Accounting Standard | Cumulative Effect of Adoption of New Accounting StandardRetained Earnings | Cumulative Effect of Adoption of New Accounting StandardAccumulated Other Comprehensive Income (Loss) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Cumulative Effect of Adoption of New Accounting Standard | $ 0.5 | $ 0.5 | |||||||||||
Beginning balance (in shares) at Dec. 31, 2016 | 51,300,000 | ||||||||||||
Beginning balance at Dec. 31, 2016 | $ 1,975.2 | $ 5.1 | $ 660.3 | $ 1,172.8 | $ 137 | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Net Income | $ 120.9 | $ 120.9 | |||||||||||
Other Comprehensive Income (Loss) (Note 13) | 57.4 | $ 57.4 | |||||||||||
Cash Dividends and Dividend Equivalents to Shareholders | $ (49.5) | (49.5) | |||||||||||
Repurchases of Common Stock (in shares) | 0 | ||||||||||||
Equity-based Compensation Cost (Note 11) | $ 9.4 | $ 9.4 | |||||||||||
Equity-based Awards, Net of Shares Exchanged (Note 11) (in shares) | 200,000 | ||||||||||||
Equity-based Awards, Net of Shares Exchanged (Note 11) | 1.7 | 3.4 | (1.7) | ||||||||||
Ending balance (in shares) at Dec. 31, 2017 | 51,500,000 | 51,500,000 | |||||||||||
Ending balance at Dec. 31, 2017 | 2,115.6 | $ 5.1 | 673.1 | 1,224.8 | 212.6 | $ 2,115.6 | $ 5.1 | $ 673.1 | $ 1,243 | $ 194.4 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Cumulative Effect of Adoption of New Accounting Standard | $ 0 | $ (18.2) | $ 18.2 | ||||||||||
Net Income | 190.1 | 190.1 | |||||||||||
Other Comprehensive Income (Loss) (Note 13) | (190.8) | (190.8) | |||||||||||
Cash Dividends and Dividend Equivalents to Shareholders | $ (56.4) | (56.4) | |||||||||||
Repurchases of Common Stock (in shares) | 0 | ||||||||||||
Equity-based Compensation Cost (Note 11) | $ 18.6 | 18.6 | |||||||||||
Equity-based Awards, Net of Shares Exchanged (Note 11) (in shares) | 100,000 | ||||||||||||
Equity-based Awards, Net of Shares Exchanged (Note 11) | (5.6) | $ 0 | (2.6) | (3) | 0 | ||||||||
Issuances of Common Stock (in shares) | 13,100,000 | ||||||||||||
Issuances of Common Stock | 978.6 | $ 1.4 | 977.2 | 0 | |||||||||
Ending balance (in shares) at Dec. 31, 2018 | 64,700,000 | ||||||||||||
Ending balance at Dec. 31, 2018 | 3,050.1 | $ 6.5 | 1,666.3 | 1,355.5 | 21.8 | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Net Income | 531.1 | 531.1 | |||||||||||
Other Comprehensive Income (Loss) (Note 13) | 314.3 | 314.3 | |||||||||||
Cash Dividends and Dividend Equivalents to Shareholders | $ (68.4) | (68.4) | |||||||||||
Repurchases of Common Stock (in shares) | 0 | ||||||||||||
Equity-based Compensation Cost (Note 11) | $ 25.3 | 25.3 | |||||||||||
Equity-based Awards, Net of Shares Exchanged (Note 11) (in shares) | 400,000 | ||||||||||||
Equity-based Awards, Net of Shares Exchanged (Note 11) | (9.2) | (1.3) | (7.9) | ||||||||||
Issuances of Common Stock (in shares) | 1,600,000 | ||||||||||||
Issuances of Common Stock | 127.2 | $ 0.2 | 127 | 0 | |||||||||
Shares Issued Under Employee Stock Purchase Plan (Note 10) | 1.9 | 1.9 | |||||||||||
Ending balance (in shares) at Dec. 31, 2019 | 66,700,000 | ||||||||||||
Ending balance at Dec. 31, 2019 | $ 3,972.3 | $ 6.7 | $ 1,819.2 | $ 1,810.3 | $ 336.1 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Shareholders’ Equity (Parenthetical) - $ / shares | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of Stockholders' Equity [Abstract] | |||||||||||
Dividends paid to shareholders per share (in dollars per share) | $ 0.28 | $ 0.25 | $ 0.25 | $ 0.25 | $ 0.24 | $ 0.24 | $ 0.24 | $ 0.24 | $ 1.03 | $ 0.96 | $ 0.96 |
Basis of Presentation and Signi
Basis of Presentation and Significant Estimates | 12 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation and Significant Estimates | BASIS OF PRESENTATION AND SIGNIFICANT ESTIMATES The Consolidated Financial Statements included herein have been prepared on the basis of accounting principles generally accepted in the United States (“GAAP”) and include the accounts of Kemper Corporation (“Kemper”) and its subsidiaries (individually and collectively referred to herein as the “Company”). All significant intercompany accounts and transactions have been eliminated. Certain prior year amounts for policyholder contract amounts have been reclassified to conform to the current presentation. Use of Estimates The preparation of financial statements in conformity with GAAP requires the use of estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ materially from those estimates and assumptions. The fair values of the Company’s Investments in Fixed Maturities, Investments in Convertible Securities at Fair Value, Investments in Equity Securities at Fair Value and Debt are estimated using a hierarchical framework which prioritizes and ranks market price observability. The carrying amounts reported in the Consolidated Balance Sheets approximate fair value for Cash, Short-term Investments and certain other assets and other liabilities because of their short-term nature. The actual value at which financial instruments could be sold or settled with a willing buyer or seller may differ from estimated fair values depending on a number of factors, including, but not limited to, current and future economic conditions, the quantity sold or settled, the presence of an active market and the availability of a willing buyer or seller. The process of estimating and establishing reserves for losses and loss adjustment expenses ("LAE") for property and casualty insurance is inherently uncertain, and the actual ultimate net cost of known and unknown claims may vary materially from the estimated amounts reserved. The reserving process is particularly imprecise for claims involving long-tailed exposures, which may not be discovered or reported until years after the insurance policy period has ended. Management considers a variety of factors, including, but not limited to, past claims experience, current claim trends and relevant legal, economic and social conditions, in estimating reserves. A change in any one or more factors is likely to result in the ultimate net claim costs differing from the estimated reserve. Changes in such estimates may be material and would be recognized in the Consolidated Financial Statements when such estimates change. The process of determining whether an asset is impaired or recoverable relies on projections of future cash flows, operating results and market conditions. Projections are inherently uncertain, and, accordingly, actual future cash flows may differ materially from projected cash flows. As a result, the Company’s assessment of the impairment of long-lived assets is susceptible to the risk inherent in making such projections. |
Summary of Accounting Policies
Summary of Accounting Policies and Accounting Changes | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Summary of Accounting Policies and Accounting Changes | SUMMARY OF ACCOUNTING POLICIES AND ACCOUNTING CHANGES Investments Investments in Fixed Maturities include bonds, notes and redeemable preferred stocks. Investments in Fixed Maturities are classified as available for sale and reported at fair value. Net Investment Income, including amortization of purchased premiums and accretion of market discounts, on Investments in Fixed Maturities is recognized as interest over the period that it is earned using the effective yield method. Unrealized appreciation or depreciation, net of applicable deferred income taxes, on fixed maturities classified as available for sale is reported in Accumulated Other Comprehensive Income (“AOCI”) included in Shareholders’ Equity. Investments in Convertible Securities include fixed maturities with equity conversion features. The Company has elected the fair value option method of accounting for investments in Convertible Securities and records Convertible Securities at fair value on the Consolidated Balance Sheets. Changes in fair value of Convertible Securities are recorded in the Consolidated Statements of Income during the period such changes occur. Equity investments include common stocks, non-redeemable preferred stocks, exchange traded funds, money market mutual funds and limited liability companies and investment partnerships in which the Company’s interests are deemed minor. Equity investments with readily determinable fair values are recorded as Equity Securities at Fair Value on the Consolidated Balance Sheets. Effective January 1, 2018, changes in the fair value of such equity securities are reported in the Consolidated Statements of Income. Prior to January 1, 2018, changes in the fair values of such equity securities were reported in AOCI. Dividend income on investments in common and non-redeemable preferred stocks is recognized on the ex-dividend date. The Company NOTE 2. SUMMARY OF ACCOUNTING POLICIES AND ACCOUNTING CHANGES (Continued) holds certain equity investments without readily determinable fair values at cost, less impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or similar investment of the same issuer on the Consolidated Balance Sheets as Equity Securities at Modified Cost. Changes in the carrying value of Modified Cost investments due to observable price changes are recorded as Income (Loss) from Change in Fair Value of Equity and Convertible Securities. Equity Method Limited Liability Investments include investments in limited liability investment companies and limited partnerships in which the Company’s interests are not deemed minor and are accounted for under the equity method of accounting. Short-term Investments include certificates of deposit and other fixed maturities that mature within one year from the date of purchase, U.S. Treasury bills, money market mutual funds and overnight interest bearing accounts. Short-term Investments are reported at cost, which approximates fair value. Other Investments primarily include loans to policyholders, real estate and mortgage loans. Loans to policyholders are carried at unpaid principal balance. Real estate is carried at cost, net of accumulated depreciation. Real estate is depreciated over the estimated useful life of the asset using the straight-line method of depreciation. Real estate is evaluated for impairment when events or circumstances indicate the carrying value may not be recoverable. An impairment loss on real estate is recognized when the carrying value exceeds the sum of undiscounted projected future cash flows as well as the fair value, or, in the case of a property classified as held for sale, when the carrying value exceeds the fair value, net of costs to sell. Mortgage loans are carried at amortized cost, net of a reserve for expected credit losses. Gains and losses on sales of investments are computed on the specific identification method and are reported in the Consolidated Statements of Income in the period in which the sales occur. The Company regularly reviews its investment portfolio for factors that may indicate that a decline in fair value of an investment is other than temporary. Losses are computed on the specific identification method and reported in the Consolidated Statements of Income in the period that the decline is determined to be other than temporary. The portion of an impairment of an investment in a fixed maturity attributed to a credit loss is reported in Net Impairment Losses Recognized in Earnings in the Consolidated Statements of Income, with the portion of the impairment that is not attributed to a credit loss reported in AOCI. Fair Value Measurements The Company uses a hierarchical framework which prioritizes and ranks the market observability of inputs used in fair value measurements. Market price observability is affected by a number of factors, including the type of asset or liability and the characteristics specific to the asset or liability being measured. Assets and liabilities with readily available, active, quoted market prices or for which fair value can be measured from actively quoted prices generally are deemed to have a higher degree of market price observability and a lesser degree of judgment used in measuring fair value. The Company classifies the inputs used to measure fair value into one of three levels as follows: • Level 1 — Quoted prices in an active market for identical assets or liabilities; • Level 2 — Observable inputs other than Level 1, quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, and model-derived prices whose inputs are observable or whose significant value drivers are observable; and • Level 3 — Significant unobservable inputs for the asset or liability being measured. Observable inputs are based on market data obtained from independent sources, while unobservable inputs are based on the Company’s market assumptions. Unobservable inputs require significant management judgment or estimation. In some cases, the inputs used to measure an asset or liability may fall into different levels of the fair value hierarchy. In those cases, the fair value measurement is categorized in its entirety in the same level of the fair value hierarchy as the lowest level of input that is significant to the entire measurement. Such determination requires significant management judgment. Deferred Policy Acquisition Costs Costs directly associated with the successful acquisition of business, principally commissions and certain premium taxes and policy issuance costs, are deferred. Costs deferred on property and casualty insurance contracts and short duration health NOTE 2. SUMMARY OF ACCOUNTING POLICIES AND ACCOUNTING CHANGES (Continued) insurance contracts are amortized over the period in which premiums are earned. Costs deferred on traditional life insurance products and other long-duration insurance contracts are primarily amortized over the anticipated premium-paying period of the related policies in proportion to the ratio of the annual premiums to the total premiums anticipated, which is estimated using the same assumptions used in calculating policy reserves. Goodwill The cost of an acquired entity over the fair value of net assets acquired is reported as Goodwill. Goodwill is not amortized, but rather is tested for recoverability annually or when certain triggering events require testing. Insurance Reserves Reserves for losses and LAE on property and casualty insurance coverage and health insurance coverage represent the estimated claim cost and loss adjustment expense necessary to cover the ultimate net cost of investigating and settling all losses incurred and unpaid at the end of any given accounting period. Such estimates are based on individual case estimates for reported claims and estimates for incurred but not reported (“IBNR”) losses, including expected development on reported claims. These estimates are adjusted in the aggregate for ultimate loss expectations based on historical experience patterns and current economic trends, with any change in the estimated ultimate liabilities being reported in the Consolidated Statements of Income in the period of change. Changes in such estimates may be material. For traditional life insurance products, the reserves for future policy benefits are estimated on the net level premium method using assumptions as of the issue date for mortality, interest, policy lapses and expenses, including provisions for adverse deviations. These assumptions vary by such characteristics as plan, age at issue and policy duration. Mortality assumptions are based on the Company’s historical experience and industry standards. Interest rate assumptions principally range from 3% to 7% . Lapse rate assumptions are based on actual and industry experience. Insurance Reserves for life insurance products are comprised of reserves for future policy benefits plus an estimate of the Company’s liability for unpaid life insurance claims and claims adjustment expenses, which includes an estimate for IBNR life insurance claims. Prior to 2016, except when required by applicable law, the Company did not utilize the database of reported deaths maintained by the Social Security Administration or any other comparable database (a “Death Master File” or “DMF”) in its operations, including to determine its IBNR liability for life insurance products. Instead of using such a database, the Company calculated its IBNR liability for life insurance products using Company-specific historical information, which included analyzing average paid claims and the average lag between date of death and the date reported to the Company for claims for which proof of death had been provided. In 2016, the Company initiated a voluntary enhancement of its claims handling procedures for its life insurance policies. The Company is now utilizing a DMF to identify potential situations where the Company has yet to be notified of an insured’s death and, as appropriate, initiating an outreach process to identify and contact beneficiaries and settle claims. Policyholders’ Benefits and Incurred Losses and Loss Adjustment Expenses for the year ended December 31, 2016 included a charge of $77.8 million to recognize the initial impact of using a DMF in the Company’s operations, including to determine its IBNR liability for unpaid claims and claims adjustment expenses for life insurance products. The Company reduced its estimate of the initial impact of using death verification databases by $21.0 million for the year ended December 31, 2019 . Policyholder Contract Liabilities Policyholder contract liabilities include Federal Home Loan Bank (“FHLB”) funding agreements used for spread lending purposes and universal life-type policyholder contracts and are stated at account balances. Other Receivables Other Receivables primarily include reinsurance recoverables and accrued investment income. Reinsurance Recoverables were $122.6 million and $158.3 million at December 31, 2019 and 2018 , respectively. Accrued Investment Income was $78.7 million and $77.9 million at December 31, 2019 and 2018 , respectively. Other Assets Other Assets primarily include property and equipment, internal use software, right-of-use assets, insurance licenses acquired in business combinations, the value of other intangible assets acquired, corporate-owned life insurance (“COLI”) and prepaid expenses. Property and equipment is depreciated over the useful lives of the assets, generally using the straight-line or double declining balance methods of depreciation depending on the asset involved. Internal use software is amortized over the useful life of the asset using the straight-line method of amortization and is evaluated for recoverability upon identification of NOTE 2. SUMMARY OF ACCOUNTING POLICIES AND ACCOUNTING CHANGES (Continued) impairment indicators. Insurance licenses acquired in business combinations and other indefinite life intangibles are not amortized, but rather tested periodically for recoverability. COLI is reported at cash surrender value with changes due to cost of insurance and investment experience reported in Other Income in the Consolidated Statements of Income. COLI was $217.0 million and $59.3 million at December 31, 2019 and 2018 , respectively. The Company accounts for the value of business acquired (“VOBA”) based on actuarial estimates of the present value of future cash flows embedded in insurance in force as of an acquisition date. VOBA was $24.1 million and $30.2 million at December 31, 2019 and 2018 , respectively. VOBA is amortized over the expected profit emergence period of the policies in force as of the acquisition date. The Company evaluates VOBA assets for recoverability annually. The Company accounts for the future profits embedded in customer relationships (“Customer Relationships”) acquired based on the present value of estimated future cash flows from such relationships. Customer Relationships was $4.3 million and $6.7 million at December 31, 2019 and 2018 , respectively, and are amortized on a straight-line basis over the estimated useful life of the relationship. Customer Relationships are tested for recoverability using undiscounted projections of future cash flows and written down to estimated fair value if the carrying value exceeds the sum of such projections of undiscounted cash flows. The Company accounts for the present value of the future profits embedded in broker or agent relationships acquired (“Agent Relationships”) based on the present value of estimated future cash flows from such acquired relationships or, using the cost recovery method, which estimates the ultimate cost to build a comparable distribution network. Agent Relationships was $62.5 million and $68.0 million at December 31, 2019 and 2018 , respectively, and are amortized on a straight-line basis over the estimated useful life of the relationship. Agent Relationships are tested for recoverability using undiscounted projections of future cash flows and written down to estimated fair value if the carrying value exceeds the sum of such projections of undiscounted cash flows. Accrued Expenses and Other Liabilities Accrued Expenses and Other Liabilities primarily include drafts payable, accrued salaries and commissions, pension benefits, postretirement medical benefits, lease liability and accrued taxes, licenses and fees. Recognition of Earned Premiums and Related Expenses Property and casualty insurance and short duration health insurance premiums are deferred when written and recognized and earned ratably over the periods to which the premiums relate. Unearned Premiums represent the portion of the premiums written related to the unexpired portion of policies in force which has been deferred and is reported as a liability. The Company performs a premium deficiency analysis typically at a product line level, namely automobile insurance, homeowners insurance and other insurance, which is consistent with the manner in which the Company acquires and services policies and measures profitability. Anticipated investment income is excluded from such analysis. A premium deficiency is recognized when the sum of expected claim costs, claim adjustment expenses, unamortized deferred policy acquisition costs and maintenance costs exceeds the related unearned premiums by first reducing related deferred policy acquisition costs to an amount, but not below zero, at which the premium deficiency would not exist. If a premium deficiency remains after first reducing deferred policy acquisition costs, a premium deficiency reserve is established and reported as a liability in the Company’s financial statements. Traditional life insurance premiums are recognized as revenue when due. Policyholders’ benefits are associated with related premiums to result in recognition of profits over the periods for which the benefits are provided using the net level premium method. Policyholders’ Benefits and Incurred Losses and Loss Adjustment Expenses include provisions for future policy benefits under life and certain accident and health insurance contracts and provisions for reported claims, estimates for IBNR claims and loss adjustment expenses. Benefit payments in excess of policy account balances are expensed. NOTE 2. SUMMARY OF ACCOUNTING POLICIES AND ACCOUNTING CHANGES (Continued) Reinsurance In the normal course of business, Kemper’s insurance subsidiaries reinsure certain risks above certain retention levels with other insurance enterprises. These reinsurance agreements do not relieve Kemper’s insurance subsidiaries of their legal obligations to the policyholder. Amounts recoverable from reinsurers are included in Other Receivables. Gains related to long-duration reinsurance contracts are deferred and amortized over the life of the underlying reinsured policies. Losses related to long-duration reinsurance contracts are recognized immediately. Any gain or loss associated with reinsurance agreements for which Kemper’s insurance subsidiaries have been legally relieved of their obligations to the policyholder is recognized in the period of relief. Income Taxes Deferred income tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred income tax assets and liabilities are measured using enacted tax rates in effect for the year in which those temporary differences are expected to be recovered or settled. A valuation allowance, if any, is maintained for the portion of deferred income tax assets that the Company does not expect to recover. Increases, if any, in the valuation allowance for deferred income tax assets are recognized as income tax expense. Decreases, if any, in the valuation allowance for deferred income tax assets are generally recognized as income tax benefit. The effect on deferred income tax assets and liabilities of a change in tax law including a change in tax rates is recognized in income from continuing operations in the period in which the change is enacted. The Company reports a liability for unrecognized tax benefits, if any, resulting from uncertain tax positions taken, or expected to be taken, in an income tax return, if any. The Company recognizes interest and penalties, if any, related to unrecognized tax benefits in income tax expense. Discontinued Operations In 2008, the Company sold its Unitrin Business Insurance operations and retained certain liabilities for unpaid insured losses that occurred prior to the date of the sale. Changes in the Company’s estimate of such retained liabilities after the sale are reported in Income from Discontinued Operations. Change in Accounting and Adoption of New Accounting Standards Accounting Standards Adopted in 2019 Effective January 1, 2019, the Company adopted Financial Accounting Standards Board (“FASB”) Accounting Standards Update (“ASU”) 2016-02, Leases—(Topic 842). ASU 2016-02 introduced a lessee model that requires the recognition of a right-of-use (“ROU”) asset and a lease liability for all leases with terms greater than twelve months. The Company adopted ASU 2016-02 using the modified retrospective method at the beginning of the period of the adoption and elected the permitted practical expedients to not reassess whether any expired or existing contracts contain leases, the lease classification for any expired or existing leases and initial direct costs for any existing leases. The adoption of ASU 2016-02 had no impact on the Company’s Shareholders’ Equity as of January 1, 2019, but resulted in the establishment of a ROU asset of $66.5 million , a lease liability of $82.5 million and an adjustment to deferred rent liability of $16.0 million . The ROU asset and related liabilities were included in Other Assets and Accrued Expenses and Other Liabilities, respectively, on the Consolidated Balance Sheet at December 31, 2019 . In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Derivatives and Hedging Activities. ASU 2017-12 aligns an entity’s risk management activities and financial reporting for hedging relationships through changes to both the designation and measurement guidance for qualifying hedging relationships and the presentation of hedge results. The amendments in ASU 2017-12 expand and refine hedge accounting for both nonfinancial and financial risk components and align the recognition and presentation of the effects of the hedging instrument and the hedged item in the financial statements. Furthermore, the amendments make certain targeted improvements to simplify the application of hedge accounting guidance and ease the administration of hedge documentation requirements and assessing hedge effectiveness. ASU 2017-12 is effective for annual periods beginning after December 15, 2018 and interim periods. The impact of adoption of ASU 2017-12 on the Company’s consolidated financial position was not material. NOTE 2. SUMMARY OF ACCOUNTING POLICIES AND ACCOUNTING CHANGES (Continued) In August 2018, the SEC issued Final Rule Release No. 33-10532, “ Disclosure Update and Simplification, ” which made a number of changes meant to simplify interim disclosures. The new rule required a presentation of changes in stockholders’ equity in the form of a reconciliation, either as a separate financial statement or in the notes to the financial statements, for the current and comparative year-to-date interim periods. In July 2019, the FASB issued ASU 2019-07, “Codification Updates to SEC Sections - Amendments to SEC Paragraphs Pursuant to SEC Final Rule Releases No. 33-10532, Disclosure Update and Simplification, and Nos. 33-10231 and 33-10442, Investment Company Reporting Modernization and Miscellaneous Updates (SEC Update) .” ASU 2019-07 codifies Final Rule Release No. 33-10532 and was effective immediately. The additional elements of this release did not have a material impact on the Company’s overall Consolidated Financial Statements. Accounting Standards Not Yet Adopted In June 2016, the FASB issued ASU 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. ASU 2016-13 replaces the existing incurred loss impairment model with an expected credit loss impairment model. The expected credit loss impairment model requires the entity to recognize its estimate of expected credit losses for affected financial assets using an allowance for credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. The amendments in this ASU require a financial asset (or a group of financial assets) measured at amortized cost basis to be presented at the net amount expected to be collected. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of the financial asset(s) to present the net carrying value at the amount expected to be collected. The income statement includes the measurement of credit losses for newly recognized financial assets, as well as the expected increases or decreases of expected credit losses that have occurred during the period. Credit losses on available-for-sale debt securities are measured in a manner similar to current GAAP, although ASU 2016-13 requires that they be presented as an allowance rather than as a write-down of the amortized cost. In situations where the estimate of credit loss on an available-for-sale debt security declines, entities will be able to record a reversal of the allowance to income in the current period, which was prohibited prior to the adoption of ASU 2016-13. ASU 2016-13 is effective for annual periods beginning after December 15, 2019 and interim periods within those annual periods. The impact of the initial adoption of ASU 2016-13 is not expected to be material. In August 2018, the FASB issued ASU 2018-12, Financial Services—Insurance (Topic 944): Targeted Improvements to Accounting for Long-Duration Contracts . ASU 2018-12 amends the accounting model for certain long-duration insurance contracts and requires the insurer to provide additional disclosures in annual and interim reporting periods. ASU 2018-12 is effective for fiscal years beginning January 1, 2022. The amendments in ASU 2018-12 are intended to improve measurement of the liability for future policy benefits related to nonparticipating traditional and limited-payment contracts, measurement and presentation of market risk benefits, amortization of deferred acquisition costs, and enhance presentation and disclosures. The Company is currently evaluating the impact of this guidance on its financial statements. In April 2019, the FASB issued ASU 2019-04, Codification Improvements to Topic 326, Financial Instruments—Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments. ASU 2019-04 clarifies certain aspects of accounting for credit losses, hedging activities, and financial instruments, previously addressed by ASU 2016-13, Measurement of Credit Losses on Financial Instruments, ASU 2017-12, Targeted Improvements to Derivatives and Hedging Activities, and ASU 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities. The Company adopted ASU 2017-12 in the first quarter of 2019. Accordingly, the amendments in ASU 2019-04 related to clarifications on accounting for hedging activities are effective for the Company in the first quarter of 2020. The amendments of ASU 2019-04 related to ASU 2016-01 and ASU 2016-13 are effective for annual periods beginning after December 15, 2019, and interim periods within those annual periods. The impact of the initial adoption of ASU 2019-04 is not expected to be material. In May 2019, the FASB issued ASU 2019-05, Financial Instruments—Credit Losses (Topic 326): Targeted Transition Relief. ASU 2019-05 provides transition relief for entities adopting the credit loss standard, ASU 2016-13. Specifically ASU 2019-05 amends ASU 2016-13 to allow companies to irrevocably elect, upon adoption of ASU 2016-13, the fair value option for financial instruments that are: (i) within the scope of the credit loss guidance in Accounting Standards Codification (“ASC”) Topic 326, Financial Instruments—Credit Losses ; (ii) were previously recorded at amortized cost; (iii) are eligible for the fair value option under ASC Topic 825, Financial Instruments ; and (iv) are not held to maturity debt. ASU 2019-05 is effective for annual periods beginning after December 15, 2019 and interim periods within those annual periods. The Company does not intend to elect the fair value option upon adoption of ASU 2016-13 for financial instruments outlined above. NOTE 2. SUMMARY OF ACCOUNTING POLICIES AND ACCOUNTING CHANGES (Continued) In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes . ASU 2019-12 is intended to simplify accounting for income taxes by eliminating certain exceptions to the guidance in ASC Topic 740 related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period, and the recognition of deferred tax liabilities for outside basis differences. ASU 2019-12 also simplifies aspects of the accounting for franchise taxes and enacted changes in tax laws or rates and clarifies the accounting for transactions that result in a step-up in the tax basis of goodwill. Further, ASU 2019-12 clarifies that single-member limited liability companies and similar disregarded entities that are not subject to income tax are not required to recognize an allocation of consolidated income tax expense in their separate financial statements, but they could elect to do so. ASU 2019-12 is effective for annual periods beginning after December 15, 2020 and interim periods within those annual periods. The Company is currently evaluating the impact of this guidance on its financial statements. The Company has adopted all other recently issued accounting pronouncements with effective dates prior to January 1, 2020. Other than the adoption of ASU 2016-02, Leases—(Topic 842), there were no adoptions of such accounting pronouncements during the year ended December 31, 2019 that had a material impact on the Company’s Consolidated Financial Statements. With the exception of ASU 2018-12, Financial Services—Insurance (Topic 944):Targeted Improvements to Accounting for Long-Duration Contracts, the Company does not expect the adoption of recently issued accounting pronouncements with effective dates after December 31, 2019 to have a material impact on the Company’s financial statements and/or disclosures. |
Acquisition of Business
Acquisition of Business | 12 Months Ended |
Dec. 31, 2019 | |
Business Combinations [Abstract] | |
Acquisition of Business | ACQUISITION OF BUSINESS Acquisition of Infinity Property and Casualty Corporation On July 2, 2018, Kemper acquired 100% of the outstanding common stock of Infinity Property and Casualty Corporation (“Infinity”), pursuant to the terms of the merger agreement dated February 13, 2018, with total cash, stock and equity-based compensation consideration paid to Infinity shareholders of approximately $1.5 billion . In conjunction with closing the acquisition, Kemper issued 13,184,107 shares, with an aggregate fair value of $982.5 million based on Kemper’s July 2, 2018 stock price of $74.53 per share, and paid $564.6 million in cash consideration to Infinity’s shareholders. In addition, Kemper issued 44,010 restricted stock units under Kemper’s equity-based compensation plan to replace Infinity restricted shares that were outstanding immediately prior to the closing. The aggregate fair value of such Kemper restricted stock units granted was $3.3 million at July 2, 2018, of which $1.6 million is attributed to service provided prior to the closing and included in consideration paid. The remaining amount of $1.7 million is attributed to future service and will be recognized in compensation expense primarily over a period of two years. The cash consideration was funded by cash on hand as of July 2, 2018, inclusive of $250.0 million in borrowings under the Company’s delayed draw term loan facility and $110.0 million of Kemper subsidiary borrowings from the FHLB of Dallas and FHLB of Chicago. On July 13, 2018, Kemper subsidiaries repaid in full the $110.0 million of FHLB borrowings, plus accrued interest. On December 28, 2018 , Kemper repaid $215.0 million of the delayed draw term loan facility. See Note 8 , “Debt,” to the Consolidated Financial Statements for additional information. Infinity is a national provider of auto insurance focused on serving the specialty automobile market. In 2019, the Company completed the process of estimating the fair value of assets acquired and liabilities assumed. In accordance with ASC Topic 805, Business Combinations , changes to the preliminary estimates and allocation as a result of events or conditions as of the acquisition date, are reported in the Company’s financial statements as an adjustment to the assets acquired and liabilities assumed. The Company finalized its estimate of certain legal and tax accruals, increasing liabilities assumed by $1.8 million , increasing current income tax assets by $0.2 million and increasing goodwill by $1.6 million compared with balances as of December 31, 2018 . The Company has allocated all of the goodwill associated with the Infinity acquisition to the Specialty Property & Casualty Insurance segment. The factors that contributed to the recognition of goodwill include synergies from economies of scale within the underwriting and claims operations, acquiring a talented workforce and cost savings opportunities. NOTE 3. ACQUISITION OF BUSINESS (Continued) Based on the Company’s final allocation of the purchase price, the fair value of the assets acquired and liabilities assumed were: DOLLARS IN MILLIONS Investments $ 1,569.3 Short-term Investments at Cost which Approximates Fair Value Investments 98.8 Cash 4.0 Receivables from Policyholders 583.4 Other Receivables 31.7 Value of Intangible Assets Acquired (Reported in Other Assets) 262.7 Current Income Tax Assets 1.0 Goodwill 1 791.0 Other Assets 102.1 Property and Casualty Insurance Reserves (717.2 ) Unearned Premiums (715.6 ) Debt (282.1 ) Deferred Income Tax Liabilities (10.8 ) Accrued Expenses and Other Liabilities (169.6 ) Total Purchase Price $ 1,548.7 1 Non-deductible for tax-purposes. |
Investments
Investments | 12 Months Ended |
Dec. 31, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | INVESTMENTS Fixed Maturities The amortized cost and estimated fair values of the Company’s Investments in Fixed Maturities at December 31, 2019 were: DOLLARS IN MILLIONS Amortized Cost Gross Unrealized Fair Value Gains Losses U.S. Government and Government Agencies and Authorities $ 784.7 $ 32.5 $ (1.3 ) $ 815.9 States and Political Subdivisions 1,386.4 130.5 (1.1 ) 1,515.8 Foreign Governments 17.2 1.2 (1.6 ) 16.8 Corporate Securities: Bonds and Notes 3,465.0 401.8 (7.1 ) 3,859.7 Redeemable Preferred Stocks 6.8 — (0.1 ) 6.7 Collateralized Loan Obligations 624.6 2.1 (8.5 ) 618.2 Other Mortgage- and Asset-backed 88.0 2.1 (1.1 ) 89.0 Investments in Fixed Maturities $ 6,372.7 $ 570.2 $ (20.8 ) $ 6,922.1 NOTE 4. INVESTMENTS (Continued) The amortized cost and estimated fair values of the Company’s Investments in Fixed Maturities at December 31, 2018 were: Amortized Cost Gross Unrealized Fair Value DOLLARS IN MILLIONS Gains Losses U.S. Government and Government Agencies and Authorities $ 865.9 $ 14.8 $ (15.0 ) $ 865.7 States and Political Subdivisions 1,553.7 74.0 (8.6 ) 1,619.1 Foreign Governments 6.5 — (0.6 ) 5.9 Corporate Securities: Bonds and Notes 3,307.8 135.1 (49.1 ) 3,393.8 Collateralized Loan Obligations 535.7 1.5 (13.2 ) 524.0 Other Mortgage- and Asset-backed 14.9 0.9 (0.1 ) 15.7 Investments in Fixed Maturities $ 6,284.5 $ 226.3 $ (86.6 ) $ 6,424.2 Other Receivables included $1.0 million and $0.5 million of unsettled sales of Investments in Fixed Maturities at December 31, 2019 and December 31, 2018 , respectively.Accrued Expenses and Other Liabilities included unsettled purchases of Investments in Fixed Maturities of $19.5 million and $10.5 million at December 31, 2019 and 2018 , respectively. The amortized cost and estimated fair values of the Company’s Investments in Fixed Maturities at December 31, 2019 by contractual maturity were: DOLLARS IN MILLIONS Amortized Cost Fair Value Due in One Year or Less $ 82.5 $ 85.1 Due after One Year to Five Years 882.3 909.2 Due after Five Years to Ten Years 1,581.7 1,708.9 Due after Ten Years 2,535.3 2,916.6 Mortgage- and Asset-backed Securities Not Due at a Single Maturity Date 1,290.9 1,302.3 Investments in Fixed Maturities $ 6,372.7 $ 6,922.1 The expected maturities of the Company’s Investments in Fixed Maturities may differ from the contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties. Investments in Mortgage- and Asset-backed Securities Not Due at a Single Maturity Date at December 31, 2019 consisted of securities issued by the Government National Mortgage Association with a fair value of $575.9 million , securities issued by the Federal National Mortgage Association with a fair value of $7.1 million , securities issued by the Federal Home Loan Mortgage Corporation with a fair value of $12.2 million and securities of other non-governmental issuers with a fair value of $707.1 million . NOTE 4. INVESTMENTS (Continued) An aging of unrealized losses on the Company’s Investments in Fixed Maturities at December 31, 2019 is presented below. DOLLARS IN MILLIONS Less Than 12 Months 12 Months or Longer Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Fixed Maturities: U.S. Government and Government Agencies and Authorities $ 118.5 $ (1.3 ) $ 5.1 $ — $ 123.6 $ (1.3 ) States and Political Subdivisions 63.0 (0.7 ) 5.4 (0.4 ) 68.4 (1.1 ) Foreign Governments 1.0 (0.3 ) 3.1 (1.3 ) 4.1 (1.6 ) Corporate Securities: Bonds and Notes 160.0 (2.1 ) 70.7 (5.0 ) 230.7 (7.1 ) Redeemable Preferred Stocks 5.5 (0.1 ) — — 5.5 (0.1 ) Collateralized Loan Obligations 95.5 (1.9 ) 355.6 (6.6 ) 451.1 (8.5 ) Other Mortgage- and Asset-backed 72.8 (1.1 ) — — 72.8 (1.1 ) Total Fixed Maturities 516.3 (7.5 ) 439.9 (13.3 ) 956.2 (20.8 ) The Company regularly reviews its fixed maturity investment portfolio for factors that may indicate that a decline in fair value of an investment is other than temporary. The portions of the declines in the fair values of fixed maturity investments that are determined to be other than temporary are reported as losses in the Consolidated Statements of Income in the periods when such determinations are made. Unrealized losses on fixed maturities, which the Company has determined to be temporary at December 31, 2019 , were $20.8 million , of which $13.3 million was related to fixed maturities that were in an unrealized loss position for 12 months or longer. There were $0.3 million of unrealized losses at December 31, 2019 related to securities for which the Company has recognized credit losses in earnings in the preceding table under the heading “Less Than 12 Months.” There were no unrealized losses at December 31, 2019 related to securities for which the Company has recognized credit losses in earnings in the preceding table under the heading “12 Months or Longer.” Investment-grade fixed maturity investments comprised $9.1 million and below-investment-grade fixed maturity investments comprised $11.7 million of the unrealized losses on investments in fixed maturities at December 31, 2019 . For below-investment-grade fixed maturity investments in an unrealized loss position, the unrealized loss amount, on average, was approximately 5% of the amortized cost basis of the investment. At December 31, 2019 , the Company did not have the intent to sell these investments and it was not more likely than not that the Company would be required to sell these investments before it recovered the amortized cost of such investments, which may be at maturity. Based on the Company’s evaluation at December 31, 2019 of the prospects of the issuers, including, but not limited to, the credit ratings of the issuers of the investments in the fixed maturities, and the Company’s intention to not sell and its determination that it would not be required to sell before it recovered the amortized cost of such investments, the Company concluded that the declines in the fair values of the Company’s investments in fixed maturities presented in the preceding table were temporary at the evaluation date. NOTE 4. INVESTMENTS (Continued) An aging of unrealized losses on the Company’s Investments in Fixed Maturities at December 31, 2018 is presented below. DOLLARS IN MILLIONS Less Than 12 Months 12 Months or Longer Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Fixed Maturities: U.S. Government and Government Agencies and Authorities $ 401.1 $ (7.6 ) $ 79.0 $ (7.4 ) $ 480.1 $ (15.0 ) States and Political Subdivisions 299.4 (5.0 ) 102.6 (3.6 ) 402.0 (8.6 ) Foreign Governments 4.9 (0.6 ) — — 4.9 (0.6 ) Corporate Securities: Bonds and Notes 1,326.0 (38.2 ) 116.8 (10.9 ) 1,442.8 (49.1 ) Collateralized Loan Obligations 439.2 (13.2 ) — — 439.2 (13.2 ) Other Mortgage- and Asset-backed 0.2 — 4.5 (0.1 ) 4.7 (0.1 ) Total Fixed Maturities $ 2,470.8 $ (64.6 ) $ 302.9 $ (22.0 ) $ 2,773.7 $ (86.6 ) Unrealized losses on fixed maturities, which the Company determined to be temporary at December 31, 2018 , were $86.6 million , of which $22.0 million was related to fixed maturities that were in an unrealized loss position for 12 months or longer. There were no unrealized losses at December 31, 2018 related to securities for which the Company has recognized credit losses in earnings in the preceding table under the heading “Less Than 12 Months.” There were no unrealized losses at December 31, 2018 related to securities for which the Company has recognized credit losses in earnings in the preceding table under the heading “12 Months or Longer.” Investment-grade fixed maturity investments comprised $69.5 million and below-investment-grade fixed maturity investments comprised $17.1 million of the unrealized losses on investments in fixed maturities at December 31, 2018 . For below-investment-grade fixed maturity investments in an unrealized loss position, the unrealized loss amount, on average, was less than 5% of the amortized cost basis of the investment. At December 31, 2018 , the Company did not have the intent to sell these investments and it was not more likely than not that the Company would be required to sell these investments before recovery of its amortized cost basis, which may be at maturity. Based on the Company’s evaluation at December 31, 2018 of the prospects of the issuers, including, but not limited to, the credit ratings of the issuers of the investments in the fixed maturities, and the Company’s intention to not sell and its determination that it would not be required to sell before recovery of the amortized cost of such investments, the Company concluded that the declines in the fair values of the Company’s investments in fixed maturities presented in the preceding table were temporary at the evaluation date. The following table sets forth the pre-tax amount of other-than-temporary impairments (“OTTI”) credit losses, recognized in Retained Earnings for Investments in Fixed Maturities held by the Company as of the beginning and end of the periods presented for which a portion of the OTTI loss related to factors other than credit has been recognized in AOCI, and the corresponding changes in such amounts. DOLLARS IN MILLIONS 2019 2018 2017 Cumulative Balance of Pre-tax Credit Losses Recognized in Retained Earnings at Beginning of Year $ 1.1 $ 1.6 $ 1.4 Pre-tax Credit Losses on Fixed Maturities without Pre-tax Credit Losses Included in Cumulative Balance at Beginning of Year 0.2 — 1.2 Reductions for Change in Impairment Status: From Status of Credit Loss to Status of Intent-to-sell or Required-to-sell — (0.5 ) (0.7 ) Reductions for Investments Sold During Year (0.1 ) — (0.3 ) Cumulative Balance of Pre-tax Credit Losses Recognized in Retained Earnings at End of Year $ 1.2 $ 1.1 $ 1.6 NOTE 4. INVESTMENTS (Continued) Equity Securities Equity Securities at Fair Value Equity securities with readily-determinable fair values, including equity securities which the Company previously classified as Fair Value Option Investments, are classified as Equity Securities at Fair Value in the Consolidated Balance Sheets with changes in fair value recorded as Income from Change in Fair Value of Equity and Convertible Securities in the Consolidated Statements of Income. Net unrealized losses arising during the year-ended December 31, 2019 and recognized in earnings, related to such investments still held as of December 31, 2019 were $126.0 million . Equity Securities at Modified Cost For Equity Securities at Modified Cost, the Company performs a qualitative impairment analysis on a quarterly basis consisting of various factors such as earnings performance, current market conditions, changes in credit ratings, changes in the regulatory environment and other factors. If the qualitative analysis identifies the presence of impairment indicators, the Company estimates the fair value of the investment. If the estimated fair value is below the carrying value, the Company records an other-than-temporary impairment in the Consolidated Statements of Income to reduce the carrying value to the estimated fair value. When the Company identifies observable transactions of the same or similar securities to those held by the Company, the Company increases or decreases the carrying value to the observable transaction price. The Company recognized a decrease of $0.5 million in the carrying value due to observable transactions for the year ended December 31, 2019 . The Company recognized an impairment of $0.1 million on Equity Securities at Modified Cost for the year ended December 31, 2019 as a result of the Company’s qualitative impairment analysis. The Company has recognized no cumulative increases in the carrying value due to observable transactions, no cumulative decreases in the carrying value due to observable transactions and $5.0 million of cumulative impairments on Equity Securities at Modified Cost held as of December 31, 2019 . Equity Method Limited Liability Investments Equity Method Limited Liability Investments include investments in limited liability investment companies and limited partnerships in which the Company’s interests are not deemed minor and are accounted for under the equity method of accounting. The Company’s investments in Equity Method Limited Liability Investments are generally of a passive nature in that the Company does not take an active role in the management of the investment entity. In 2019 and 2018 , aggregate investment income (losses) from Equity Method Limited Liability Investments exceeded 10% of the Company’s pretax consolidated net income. Accordingly, the Company is disclosing aggregated summarized financial data for its Equity Method Limited Liability Investments for all periods presented in the Consolidated Financial Statements. Such aggregated summarized financial data does not represent the Company’s proportionate share of the Equity Method Limited Liability Investment assets or earnings. Aggregate total assets of the Equity Method Limited Liability Investments in which the Company invested totaled $2,368.1 million , $2,805.3 million and $2,393.7 million , as of December 31, 2019 , 2018 and 2017 , respectively. Aggregate total liabilities of the Equity Method Limited Liability Investments in which the Company invested totaled $817.2 million , $1,030.7 million and $899.7 million , as of December 31, 2019 , 2018 and 2017 , respectively. Aggregate net income of the Equity Method Limited Liability Investments in which the Company invested totaled $78.0 million , $130.4 million and $209.3 million for the years ended December 31, 2019 , 2018 and 2017 , respectively. The aggregate summarized financial data is based on the most recent and sufficiently-timely financial information available to the Company as of the respective reporting dates and periods. The Company’s maximum exposure to loss at December 31, 2019 is limited to the total carrying value of $220.4 million . In addition, the Company had outstanding commitments totaling approximately $97.2 million to fund Equity Method Limited Liability Investments at December 31, 2019 . Other Investments The carrying values of the Company’s Other Investments at December 31, 2019 and 2018 were: DOLLARS IN MILLIONS 2019 2018 Loans to Policyholders at Unpaid Principal $ 305.6 $ 300.6 Real Estate at Depreciated Cost 111.4 114.2 Mortgage Loans at Amortized Cost 27.5 — Total $ 444.5 $ 414.8 Net Investment Income for the years ended December 31, 2019 , 2018 and 2017 was: DOLLARS IN MILLIONS 2019 2018 2017 Investment Income: Interest on Fixed Income Securities $ 299.4 $ 268.9 $ 246.6 Dividends on Equity Securities Excluding Alternative Investments 22.9 13.6 9.3 Alternative Investments: Equity Method Limited Liability Investments 1.0 11.0 24.8 Fair Value Option Investments — — 1.3 Limited Liability Investments Included in Equity Securities 18.0 26.4 28.6 Total Alternative Investments 19.0 37.4 54.7 Short-term Investments 8.2 7.0 1.6 Loans to Policyholders 22.6 22.5 21.6 Real Estate 9.8 9.6 10.7 Other 1.5 0.9 0.5 Total Investment Income 383.4 359.9 345.0 Investment Expenses: Real Estate 9.6 9.7 10.5 Other Investment Expenses 9.5 9.3 7.3 Total Investment Expenses 19.1 19.0 17.8 Net Investment Income $ 364.3 $ 340.9 $ 327.2 NOTE 14. INCOME FROM INVESTMENTS (Continued) Other Receivables includes accrued investment income of $78.7 million and $77.9 million at December 31, 2019 and 2018 , respectively. The components of Net Realized Gains on Sales of Investments for the years ended December 31, 2019 , 2018 and 2017 were: DOLLARS IN MILLIONS 2019 2018 2017 Fixed Maturities: Gains on Sales $ 41.1 $ 25.3 $ 8.4 Losses on Sales (4.8 ) (11.1 ) (0.9 ) Equity Securities: Gains on Sales 5.8 12.3 42.0 Losses on Sales (0.2 ) — — Real Estate: Gains on Sales — — 6.4 Other Investments: Gains on Other Sales — — 0.1 Losses on Sales — (0.1 ) (0.1 ) Net Gains on Trading Securities — — 0.6 Net Realized Gains on Sales of Investments $ 41.9 $ 26.4 $ 56.5 Gross Gains on Sales $ 46.9 $ 37.6 $ 56.9 Gross Losses on Sales (5.0 ) (11.2 ) (1.0 ) Net Gains on Trading Securities — — 0.6 Net Realized Gains on Sales of Investments $ 41.9 $ 26.4 $ 56.5 The components of Net Impairment Losses Recognized in Earnings reported in the Consolidated Statements of Income for the years ended December 31, 2019 , 2018 and 2017 were: DOLLARS IN MILLIONS 2019 2018 2017 Fixed Maturities $ (13.3 ) $ (2.0 ) $ (12.1 ) Equity Securities (0.5 ) (2.5 ) (2.2 ) Net Impairment Losses Recognized in Earnings $ (13.8 ) $ (4.5 ) $ (14.3 ) |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | GOODWILL AND INTANGIBLE ASSETS Goodwill balances by business segment at December 31, 2019 and 2018 were: DOLLARS IN MILLIONS 2019 2018 Specialty Property & Casualty Insurance $ 845.0 $ 843.4 Preferred Property & Casualty Insurance 49.6 49.6 Life & Health Insurance 219.4 219.4 Total $ 1,114.0 $ 1,112.4 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 qualitative goodwill impairment assessment for all reporting units with goodwill as of October 1, 2019 . The qualitative assessment takes into consideration changes in macroeconomic conditions, industry and market considerations, cost factors, overall financial performance, changes in management or key personnel, changes in strategy and changes in Kemper’s stock price since the last quantitative assessment, which was performed on January 1, 2017. Based on its qualitative assessment, the Company concluded that the associated goodwill was recoverable for each reporting unit tested. Definite and indefinite life intangible assets at December 31, 2019 and 2018 were: DOLLARS IN MILLIONS 2019 2018 Definite Life Intangible Assets: Value of Business Acquired $ 24.1 $ 30.2 Customer Relationships 4.3 6.7 Agent Relationships 62.5 68.0 Trade Names — 7.0 Internal-Use Software 189.7 149.1 Total Definite Life Intangible Assets 280.6 261.0 Indefinite Life Intangible Assets: Trade Names 5.2 5.2 Insurance Licenses 42.6 42.6 Total Indefinite Life Intangible Assets 47.8 47.8 Total Intangible Assets $ 328.4 $ 308.8 The Company records intangible assets acquired in business combinations and certain costs incurred developing and customizing internal-use software within Other Assets on the Consolidated Balance Sheets. Definite life intangible assets are amortized over the estimated profit emergence period or estimated useful life of the asset. Indefinite life intangible assets are not amortized, but rather tested annually for impairment. In 2019 and 2018 , the Company recognized amortization expense on definite life intangible assets of $37.8 million and $166.4 million , respectively. NOTE 5. GOODWILL AND INTANGIBLE ASSETS (Continued) The amount of amortization expense expected to be recorded in the next five years for definite life intangible assets is as follows: DOLLARS IN MILLIONS 2020 2021 2022 2023 2024 Definite Life Intangible Assets: Value of Business Acquired $ 4.0 $ 3.1 $ 2.7 $ 2.5 $ 2.4 Customer Relationships 0.9 0.8 0.6 0.5 0.4 Agent Relationships 5.0 5.0 5.0 5.0 5.0 Internal-Use Software 24.1 19.1 17.9 16.5 14.0 Total $ 34.0 $ 28.0 $ 26.2 $ 24.5 $ 21.8 |
Property and Casualty Insurance
Property and Casualty Insurance Reserves | 12 Months Ended |
Dec. 31, 2019 | |
Liability for Future Policy Benefits and Unpaid Claims and Claims Adjustment Expense [Abstract] | |
Property and Casualty Insurance Reserves | PROPERTY AND CASUALTY INSURANCE RESERVES The Company’s Property and Casualty Insurance Reserves are reported using the Company’s estimate of its ultimate liability for losses and LAE for claims that occurred prior to the end of any given accounting period but have not yet been paid. Such estimates are based on individual case estimates for reported claims and estimates for IBNR losses, including expected development on reported claims. The determination of individual case reserves differs by line of business. For specialty personal automobile insurance and commercial automobile insurance, case reserves are set primarily using statistical reserves that are based on studies of historical average paid amounts by state, coverage and product. However, when such reserves exceed certain thresholds they are set manually by adjusters. For preferred personal automobile insurance, homeowners insurance and other personal insurance, case reserves are set by adjusters and are based on the adjusters’ estimates of the amount for which the claims will ultimately be paid. The Company’s actuaries generally estimate ultimate losses and LAE and, therefore, reserves at least quarterly for most product lines and/or coverage levels using accident quarters or years spanning 10 or more years, depending on the size of the product line and/or coverage level or emerging issues relating to them. The Company’s actuaries use a variety of generally accepted actuarial loss reserving estimation methodologies to estimate the ultimate losses and LAE for the current accident quarter or year and re-estimate the ultimate losses and LAE for previous accident quarters or years to determine if changes in the previous estimates of the ultimate losses and LAE are indicated by the most recent data. The key assumption in these estimation methodologies is that patterns observed in prior periods are indicative of how losses and LAE are expected to develop in the future and that such historical data can be used to predict and estimate ultimate losses and LAE. However, changes in the Company’s business processes, by their very nature, are likely to affect the development patterns, which generally results in the historical development factors becoming less reliable over time in predicting how losses and LAE will ultimately develop. The Company’s actuaries use professional judgment in determining how much weight to place on the development patterns based on the older historical data and how much weight to place on the development patterns based on more recent data. In some cases, the Company’s actuaries make adjustments to the loss reserving estimation methodologies to estimate ultimate losses and LAE. The Company’s actuaries’ quarterly or yearly selections are summed by product and/or coverage levels to create the actuarial indication of the ultimate losses and LAE. Paid amounts are then subtracted from the ultimates to compute the reserves for property and casualty insurance losses and LAE. These results are reviewed by the Company’s corporate actuary and corporate management who apply their collective judgment and determine the appropriate estimated level of reserves to record. Numerous factors are considered in this determination process, including, but not limited to, the assessed reliability of key loss trends and assumptions that may be significantly influencing the current actuarial indications, changes in claim handling practices or other changes that affect the timing of payment or development patterns, changes in the mix of business, the maturity of the accident year, pertinent trends observed over the recent past, the level of volatility within a particular line of business, the improvement or deterioration of actuarial indications in the current period as compared to prior periods, and the amount of reserves related to third party pools for which the Company has limited access to the underlying data and, accordingly, relies on calculations provided by such pools. NOTE 6. PROPERTY AND CASUALTY INSURANCE RESERVES (Continued) The Company’s goal is to ensure that its total reserves for property and casualty insurance losses and LAE are adequate to cover all costs, while sustaining minimal variation from the time reserves for losses and LAE are initially estimated until losses and LAE are fully developed. Changes in the Company’s estimates of these losses and LAE over time, also referred to as “development,” will occur and may be material. The following tables contain information about incurred and paid claims development as of and for the year ended December 31, 2019 , net of reinsurance and indemnification, as well as cumulative claim frequency and the total of IBNR liabilities, including expected development on reported claims included within the net incurred losses and allocated LAE amounts. The tables are grouped by major product line and, if relevant, coverage. The information about incurred and paid claims development for the years ended December 31, 2015 through 2018 is presented as supplementary information and is unaudited. Specialty Personal Automobile Insurance—Liability 1 DOLLARS IN MILLIONS, EXCEPT CUMULATIVE INCURRED CLAIMS As of December 31, 2019 Incurred Losses and Allocated LAE, Net of Reinsurance For the Years Ended December 31, Total of IBNR Liabilities Plus Expected Development on Reported Claims Cumulative Number of Reported Claims Accident Year 2015 2016 2017 2018 2019 2015 $ 965.1 $ 855.1 $ 965.1 $ 972.3 $ 969.6 $ 8.1 401,025 2016 969.4 1,021.6 1,027.2 1,026.0 22.5 417,016 2017 997.7 999.9 1,004.5 40.6 396,578 2018 1,128.1 1,119.1 93.0 445,229 2019 1,270.7 383.0 447,558 Total 5,389.9 Cumulative Paid Losses and Allocated LAE, Net of Reinsurance For the Years Ended December 31, Accident Year 2015 2016 2017 2018 2019 2015 $ 450.5 $ 794.9 $ 898.9 $ 934.7 $ 954.0 2016 459.7 831.1 943.4 987.7 2017 441.9 808.6 926.7 2018 467.5 903.8 2019 497.2 Total 4,269.4 Outstanding Loss and Allocated LAE Reserves on Accident Years before 2015, Net of Reinsurance 20.4 Loss and Allocated LAE Reserves, Net of Reinsurance $ 1,140.9 1 Table retrospectively includes Alliance United and Infinity’s historical incurred and paid accident year claim information for all periods presented. NOTE 6. PROPERTY AND CASUALTY INSURANCE RESERVES (Continued) Specialty Personal Automobile Insurance—Physical Damage 1 DOLLARS IN MILLIONS, EXCEPT CUMULATIVE INCURRED CLAIMS As of December 31, 2019 Incurred Losses and Allocated LAE, Net of Reinsurance For the Years Ended December 31, Total of IBNR Liabilities Plus Expected Development on Reported Claims Cumulative Number of Reported Claims Accident Year 2015 2016 2017 2018 2019 2015 $ 403.8 $ 407.1 $ 406.7 $ 406.5 $ 406.6 $ 0.9 231,007 2016 462.2 456.9 456.9 457.0 (0.1 ) 246,183 2017 475.6 465.6 465.1 — 251,872 2018 504.9 496.9 (1.6 ) 269,782 2019 574.7 47.5 276,797 Total 2,400.3 Cumulative Paid Losses and Allocated LAE, Net of Reinsurance For the Years Ended December 31, Accident Year 2015 2016 2017 2018 2019 2015 $ 382.4 $ 408.8 $ 406.7 $ 406.4 $ 406.1 2016 436.4 460.2 458.0 457.5 2017 443.0 468.7 466.0 2018 463.6 501.5 2019 525.8 Total 2,356.9 Outstanding Loss and Allocated LAE Reserves on Accident Years before 2015, Net of Reinsurance (1.2 ) Loss and Allocated LAE Reserves, Net of Reinsurance $ 42.2 1 Table retrospectively includes Alliance United and Infinity’s historical incurred and paid accident year claim information for all periods presented. NOTE 6. PROPERTY AND CASUALTY INSURANCE RESERVES (Continued) Commercial Automobile Insurance—Liability 1 DOLLARS IN MILLIONS, EXCEPT CUMULATIVE INCURRED CLAIMS As of December 31, 2019 Incurred Losses and Allocated LAE, Net of Reinsurance For the Years Ended December 31, Total of IBNR Liabilities Plus Expected Development on Reported Claims Cumulative Number of Reported Claims Accident Year 2015 2016 2017 2018 2019 2015 $ 102.5 $ 106.9 $ 112.9 $ 112.3 $ 110.7 $ 0.6 19,292 2016 120.5 112.4 115.6 117.7 3.5 20,417 2017 120.5 120.0 118.3 9.1 19,925 2018 123.2 116.5 19.8 19,969 2019 128.4 59.2 17,772 Total 591.6 Cumulative Paid Losses and Allocated LAE, Net of Reinsurance and Indemnification For the Years Ended December 31, Accident Year 2015 2016 2017 2018 2019 2015 $ 34.8 $ 70.2 $ 88.6 $ 100.3 $ 107.6 2016 36.2 71.6 89.7 102.3 2017 36.3 72.3 90.7 2018 36.8 68.8 2019 32.4 Total 401.8 Outstanding Loss and Allocated LAE Reserves on Accident Years before 2015, Net of Reinsurance 1.4 Loss and Allocated LAE Reserves, Net of Reinsurance $ 191.2 1 Table retrospectively includes Infinity’s historical incurred and paid accident year claim information for all periods presented. NOTE 6. PROPERTY AND CASUALTY INSURANCE RESERVES (Continued) Commercial Automobile Insurance—Physical Damage 1 DOLLARS IN MILLIONS, EXCEPT CUMULATIVE INCURRED CLAIMS As of December 31, 2019 Incurred Losses and Allocated LAE, Net of Reinsurance For the Years Ended December 31, Total of IBNR Liabilities Plus Expected Development on Reported Claims Cumulative Number of Reported Claims Accident Year 2015 2016 2017 2018 2019 2015 $ 21.5 $ 21.6 $ 21.7 $ 21.7 $ 21.7 $ — 9,643 2016 24.2 24.2 24.1 24.2 — 10,560 2017 24.2 23.5 23.5 0.2 9,788 2018 23.6 23.5 0.3 9,558 2019 26.0 3.5 8,803 Total 118.9 Cumulative Paid Losses and Allocated LAE, Net of Reinsurance and Indemnification For the Years Ended December 31, Accident Year 2015 2016 2017 2018 2019 2015 $ 20.2 $ 21.6 $ 21.7 $ 21.7 $ 21.7 2016 22.4 24.2 24.1 24.2 2017 22.2 23.5 23.4 2018 21.7 23.6 2019 23.0 Total 115.9 Outstanding Loss and Allocated LAE Reserves on Accident Years before 2015, Net of Reinsurance — Loss and Allocated LAE Reserves, Net of Reinsurance $ 3.0 1 Table retrospectively includes Infinity’s historical incurred and paid accident year claim information for all periods presented. NOTE 6. PROPERTY AND CASUALTY INSURANCE RESERVES (Continued) Preferred Personal Automobile Insurance—Liability DOLLARS IN MILLIONS, EXCEPT CUMULATIVE INCURRED CLAIMS As of December 31, 2019 Incurred Losses and Allocated LAE, Net of Reinsurance For the Years Ended December 31, Total of IBNR Liabilities Plus Expected Development on Reported Claims Cumulative Number of Reported Claims Accident Year 2015 2016 2017 2018 2019 2015 $ 168.3 $ 171.8 $ 176.5 $ 177.6 $ 177.1 $ 0.9 38,961 2016 162.1 174.5 179.1 176.8 2.1 36,721 2017 164.4 157.8 155.8 4.5 33,663 2018 157.6 156.3 15.6 32,020 2019 172.2 51.3 32,848 Total 838.2 Cumulative Paid Losses and Allocated LAE, Net of Reinsurance For the Years Ended December 31, Accident Year 2015 2016 2017 2018 2019 2015 $ 73.1 $ 122.4 $ 147.5 $ 163.1 $ 169.3 2016 61.2 114.6 145.6 161.1 2017 59.2 108.9 134.1 2018 55.5 107.6 2019 62.7 Total 634.8 Outstanding Loss and Allocated LAE Reserves on Accident Years before 2015, Net of Reinsurance 9.5 Loss and Allocated LAE Reserves, Net of Reinsurance $ 212.9 NOTE 6. PROPERTY AND CASUALTY INSURANCE RESERVES (Continued) Preferred Personal Automobile Insurance—Physical Damage DOLLARS IN MILLIONS, EXCEPT CUMULATIVE INCURRED CLAIMS As of December 31, 2019 Incurred Losses and Allocated LAE, Net of Reinsurance For the Years Ended December 31, Total of IBNR Liabilities Plus Expected Development on Reported Claims Cumulative Number of Reported Claims Accident Year 2015 2016 2017 2018 2019 2015 $ 101.2 $ 100.7 $ 100.6 $ 100.6 $ 100.6 $ — 68,409 2016 106.6 106.6 106.3 106.2 (0.1 ) 65,348 2017 109.2 105.8 105.2 (0.1 ) 62,553 2018 113.9 111.0 (0.5 ) 60,749 2019 126.4 (0.9 ) 60,548 Total 549.4 Cumulative Paid Losses and Allocated LAE, Net of Reinsurance For the Years Ended December 31, Accident Year 2015 2016 2017 2018 2019 2015 $ 100.1 $ 101.0 $ 100.7 $ 100.6 $ 100.6 2016 105.2 106.9 106.3 106.3 2017 104.4 106.1 105.2 2018 107.2 111.4 2019 120.7 Total 544.2 Outstanding Loss and Allocated LAE Reserves on Accident Years before 2015, Net of Reinsurance (0.1 ) Loss and Allocated LAE Reserves, Net of Reinsurance $ 5.1 NOTE 6. PROPERTY AND CASUALTY INSURANCE RESERVES (Continued) Homeowners Insurance DOLLARS IN MILLIONS, EXCEPT CUMULATIVE INCURRED CLAIMS As of December 31, 2019 Incurred Losses and Allocated LAE, Net of Reinsurance For the Years Ended December 31, Total of IBNR Liabilities Plus Expected Development on Reported Claims Cumulative Number of Reported Claims Accident Year 2015 2016 2017 2018 2019 2015 $ 178.9 $ 164.9 $ 163.2 $ 164.3 $ 164.4 $ 0.5 19,731 2016 200.3 201.7 204.2 202.2 1.4 20,380 2017 261.2 259.5 245.2 0.9 20,982 2018 185.9 183.0 1.2 17,122 2019 162.9 19.2 13,931 Total 957.7 Cumulative Paid Losses and Allocated LAE, Net of Reinsurance For the Years Ended December 31, Accident Year 2015 2016 2017 2018 2019 2015 $ 116.9 $ 154.4 $ 158.0 $ 161.3 $ 162.7 2016 141.2 190.1 195.8 198.9 2017 165.8 242.5 235.7 2018 127.4 180.2 2019 111.1 Total 888.6 Outstanding Loss and Allocated LAE Reserves on Accident Years before 2015, Net of Reinsurance 3.2 Loss and Allocated LAE Reserves, Net of Reinsurance $ 72.3 The claim counts in the preceding tables are cumulative reported claim counts as of December 31, 2019 and are equal to the sum of cumulative open and cumulative closed claims, including claims closed without payment. Certain product lines, particularly the Company’s specialty personal automobile insurance, tend to have a higher percentage of claims closed without payment. The Company's claims associated with automobile insurance are counted at the feature level. As such, each claimant and each coverage is counted separately. For example, if for one occurrence, the Company's policyholder is at fault for damage to his/her own vehicle, another party's vehicle and three injured parties, there may be five features—three for bodily injury liability, one for property damage liability and one for first-party collision coverage. There may also be another feature for first-party medical payments. NOTE 6. PROPERTY AND CASUALTY INSURANCE RESERVES (Continued) The following table reconciles the net incurred and paid claims development tables presented above to the Company's liability for Property and Casualty Insurance Reserves included in the Consolidated Balance Sheet at December 31, 2019 . DOLLARS IN MILLIONS 2019 Property and Casualty Insurance Reserves, Net of Reinsurance: Specialty Personal Automobile Insurance—Liability 1,140.9 Specialty Personal Automobile Insurance—Physical Damage 42.2 Commercial Automobile Insurance—Liability 191.2 Commercial Automobile Insurance—Physical Damage 3.0 Preferred Personal Automobile Insurance—Liability 212.9 Preferred Personal Automobile Insurance—Physical Damage 5.1 Homeowners Insurance 72.3 Other 57.5 Total 1,725.1 Reinsurance Recoverables on Unpaid Losses and Allocated LAE: Specialty Personal Automobile Insurance—Liability 8.7 Commercial Automobile Insurance—Liability 9.4 Preferred Personal Automobile Insurance—Liability 25.2 Homeowners Insurance 15.5 Other 6.8 Total 65.6 Unallocated LAE 179.1 Property and Casualty Insurance Reserves, Gross of Reinsurance $ 1,969.8 The following is supplementary information about average historical claims duration as of December 31, 2019 . Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance (Unaudited) Years 1 2 3 4 5 Specialty Personal Automobile Insurance—Liability 43.2 % 81.1 % 92.3 % 96.3 % 98.4 % Specialty Personal Automobile Insurance—Physical Damage 93.9 % 100.7 % 100.1 % 100.0 % 99.9 % Commercial Automobile Insurance—Liability 29.9 % 61.1 % 77.6 % 88.8 % 97.2 % Commercial Automobile Insurance—Physical Damage 92.2 % 100.0 % 99.7 % 100.0 % 100.0 % Preferred Personal Automobile Insurance—Liability 37.2 % 68.2 % 83.9 % 91.6 % 95.6 % Preferred Personal Automobile Insurance—Physical Damage 98.0 % 100.6 % 100.1 % 100.0 % 100.0 % Homeowners Insurance 69.3 % 96.3 % 96.4 % 98.2 % 99.0 % NOTE 6. PROPERTY AND CASUALTY INSURANCE RESERVES (Continued) Property and Casualty Insurance Reserve activity for the years ended December 31, 2019 , 2018 and 2017 was: DOLLARS IN MILLIONS 2019 2018 2017 Beginning Property and Casualty Insurance Reserves: Gross of Reinsurance at Beginning of Year $ 1,874.9 $ 1,016.8 $ 931.4 Less Reinsurance Recoverables at Beginning of Year 101.9 53.1 50.2 Property and Casualty Insurance Reserves, Net of Reinsurance at Beginning of Year 1,773.0 963.7 881.2 Property and Casualty Insurance Reserves Acquired, Net of Reinsurance 3.6 695.1 — Incurred Losses and LAE related to: Current Year 2,879.5 2,093.4 1,454.1 Prior Years (71.1 ) (7.4 ) 18.9 Total Incurred Losses and LAE 2,808.4 2,086.0 1,473.0 Paid Losses and LAE related to: Current Year: 1,682.1 1,300.8 868.1 Prior Years 998.7 671.0 522.4 Total Paid Losses and LAE 2,680.8 1,971.8 1,390.5 Property and Casualty Insurance Reserves, Net of Reinsurance at End of Year 1,904.2 1,773.0 963.7 Plus Reinsurance Recoverables at End of Year 65.6 101.9 53.1 Property and Casualty Insurance Reserves, Gross of Reinsurance at End of Year $ 1,969.8 $ 1,874.9 $ 1,016.8 Property and Casualty Insurance Reserves are estimated based on historical experience patterns and current economic trends. Actual loss experience and loss trends are likely to differ from these historical experience patterns and economic conditions. Loss experience and loss trends emerge over several years from the dates of loss inception. The Company monitors such emerging loss trends on a quarterly basis. Changes in such estimates are included in the Consolidated Statements of Income in the period of change. In 2019 , the Company decreased its property and casualty insurance reserves by $71.1 million to recognize favorable development of loss and LAE reserves from prior accident years. Specialty Personal Automobile insurance loss and LAE reserves developed favorably by $23.8 million due primarily to the emergence of more favorable loss patterns than expected for both liability and physical damage insurance for the 2018 accident year. Commercial lines insurance loss and LAE reserves included favorable development of $12.9 million due primarily to the emergence of more favorable loss patterns than expected for commercial automobile liability insurance for 2018 and 2017 accident years. Preferred Personal Automobile insurance loss and LAE reserves developed favorably by $8.2 million due primarily to the emergence of more favorable loss patterns than expected for liability insurance for several prior accident years and for physical damage insurance for 2018 accident year. Homeowners insurance loss and LAE reserves developed favorably by $19.7 million due primarily to the net reinsurance impact from the sale of subrogation rights related to the 2017 and 2018 California Wildfires. Other personal lines loss and LAE reserves developed favorably by $6.5 million due primarily to the emergence of more favorable loss patterns than expected for prior accident years. In 2018 , the Company decreased its property and casualty insurance reserves by $7.4 million to recognize favorable development of loss and LAE reserves from prior accident years. Specialty Personal Automobile insurance loss and LAE reserves developed adversely by $5.5 million due primarily to the emergence of loss patterns that were worse than expected for both physical damage and liability insurance for the 2017 accident year, partially offset by the emergence of loss patterns that were better than expected for 2016 and prior accident years. Commercial lines insurance loss and LAE reserves developed favorably by $6.1 million . Preferred Personal Automobile insurance loss and LAE reserves developed favorably by $5.8 million due primarily to the emergence of loss patterns that were better than expected for both physical damage and liability insurance for the 2017 accident year and, to a lesser extent, for liability insurance for the 2015 and prior accident years, partially offset by the emergence of loss patterns that was worse than expected for the 2016 accident year. Homeowners insurance loss and LAE reserves developed adversely by $3.2 million due primarily to the emergence of non-catastrophe loss patterns that were worse than expected for the 2016 accident year. Other personal lines loss and LAE reserves developed favorably by $4.3 million due primarily to the emergence of more favorable loss patterns than expected for prior accident years. NOTE 6. PROPERTY AND CASUALTY INSURANCE RESERVES (Continued) In 2017 , the Company increased its property and casualty insurance reserves by $18.9 million to recognize adverse development of loss and LAE reserves from prior accident years. Specialty Personal automobile insurance loss and LAE reserves developed adversely by $2.9 million . Commercial lines insurance loss and LAE reserves included favorable development of $0.6 million . Preferred Personal automobile insurance loss and LAE reserves developed adversely by $19.3 million due primarily to the emergence of loss patterns that were worse than expected for both physical damage and liability insurance for the 2016 accident year and, to a lesser extent, for liability insurance for the 2015 and 2014 accident years, partially offset by the emergence of more favorable loss patterns than expected for the 2013 and prior accident years. Homeowners insurance loss and LAE reserves developed adversely by $1.0 million due primarily to the emergence of non-catastrophe loss patterns that were worse than expected for the 2016 accident year, and to a lesser extent, the 2013 and prior accident years, partially offset by $3.7 million of favorable development on catastrophes primarily for the 2016 accident year and, to a lesser extent, the 2015 accident year. Other personal lines loss and LAE reserves developed favorably by $3.7 million due primarily to the emergence of more favorable loss patterns than expected for the 2015 , 2014, 2013 and prior accident years partially offset by the emergence of loss patterns that were worse than expected for the 2016 accident year. The Company cannot predict whether loss and LAE reserves will develop favorably or unfavorably from the amounts reported in the Consolidated Financial Statements. The Company believes that any such development will not have a material effect on the Company’s consolidated financial position, but could have a material effect on the Company’s consolidated financial results for a given period. Reinsurance recoverables on property and casualty insurance reserves were $65.6 million and $101.9 million at December 31, 2019 and 2018 , respectively. These recoverables are concentrated with several reinsurers, the vast majority of which are highly rated by one or more of the principal investor and/or insurance company rating agencies. While most of these recoverables were unsecured at December 31, 2019 and 2018 , the agreements with the reinsurers generally provide for some form of collateralization upon the occurrence of certain events. |
Policyholder Contract Liabiliti
Policyholder Contract Liabilities | 12 Months Ended |
Dec. 31, 2019 | |
Insurance [Abstract] | |
Policyholder Contract Liabilities | POLICYHOLDER CONTRACT LIABILITIES Policyholder Contract Liabilities at December 31, 2019 and 2018 were as follows: DOLLARS IN MILLIONS December 31, 2019 2018 FHLB Funding Agreements $ 243.4 $ 10.0 Other 66.4 66.8 Total $ 309.8 $ 76.8 United Insurance has entered into funding agreements with the FHLB of Chicago in exchange for cash, which it uses for spread lending purposes. United Insurance received advances of $614.5 million from the FHLB of Chicago and made repayments of $381.1 million under the spread lending program in 2019 . United Insurance received advances of $10.0 million from the FHLB of Chicago in 2018 under the spread lending program. When a funding agreement is issued, United Insurance is then required to post collateral in the form of eligible securities including mortgage-backed, government, and agency debt instruments for each of the advances that are entered. 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. Upon any event of default by United Insurance, the FHLB’s recovery on the collateral is limited to the amount of United Insurance’s liability under the funding agreements to the FHLB of Chicago. NOTE 7. POLICYHOLDER CONTRACT LIABILITIES (Continued) United Insurance’s liability under the funding agreements with the FHLB of Chicago, the amount of collateral pledged under such agreements and FHLB of Chicago common stock owned by United Insurance at December 31, 2019 and 2018 is presented below. DOLLARS IN MILLIONS 2019 2018 Liability under Funding Agreements $ 243.4 $ 10.0 Fair Value of Collateral Pledged $ 287.8 $ 15.7 FHLB of Chicago Common Stock Owned at Cost $ 4.9 $ 0.8 |
Debt
Debt | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Debt | DEBT Amended and Extended Credit Agreement and Term Loan Facility On June 8, 2018, the Company entered into an amended and extended credit agreement and term loan facility. The amended and extended credit agreement increased the borrowing capacity of the existing unsecured credit agreement to $300.0 million and extended the maturity date to June 8, 2023. The term loan facility included a delayed-draw feature with borrowing capacity of $250.0 million and a maturity date two years from the borrowing date (see discussion below under heading, “Term Loan Due 2020,” for additional information). On June 4, 2019, the Company utilized the accordion feature under the credit agreement to increase its credit borrowing capacity by $100.0 million , resulting in the available credit commitments increasing from $300.0 million to $400.0 million . The Company incurred $0.1 million in additional debt issuance costs in connection with the utilization of the accordion feature which, in addition to the $1.1 million of remaining unamortized costs under the credit agreement, will be amortized under the remaining term of the credit agreement. There were no outstanding borrowings under the credit agreement at either December 31, 2019 or December 31, 2018 . Long-term Debt The Company designates debt obligations as either short-term or long-term based on maturity date at issuance, or in the case of the 2022 Senior Notes, based on the date of assumption. Total amortized cost of Long-term Debt outstanding at December 31, 2019 and 2018 was: DOLLARS IN MILLIONS 2019 2018 Term Loan due June 29, 2020 $ — $ 34.9 Term Loan due July 5, 2023 49.9 — 5.0% Senior Notes due September 19, 2022 279.9 281.5 4.35% Senior Notes due February 15, 2025 448.6 448.4 7.375% Subordinated Debentures due February 27, 2054 — 144.2 Total Long-term Debt Outstanding $ 778.4 $ 909.0 Term Loan Due 2020 On June 29, 2018 , the Company borrowed $250.0 million under its delayed-draw term loan facility dated June 8, 2018 , to facilitate the funding of the acquisition of Infinity. The proceeds from the term loan facility, net of debt issuance costs, were $249.4 million . On December 28, 2018 , the Company repaid $215.0 million of the outstanding term loan. On May 31, 2019 , remaining outstanding balance of $35.0 million was repaid. Term Loan Due 2023 On June 4, 2019 , the Company entered into a delayed-draw term loan facility with a borrowing capacity of $50.0 million and a maturity date four years from the borrowing date (the “2023 Term Loan”). On July 5, 2019 , the Company borrowed $49.9 million , net of debt issuance costs, under the 2023 Term Loan, with a final maturity date of July 5, 2023 . The agreement includes a mutual option to extend the maturity date by one year. NOTE 8. DEBT (Continued) 5.0% Senior Notes Due 2022 Infinity’s liabilities at the acquisition date included $275.0 million principal amount, 5.0% Senior Notes due September 19, 2022 (“2022 Senior Notes”). The 2022 Senior Notes were recorded at fair value as of the acquisition date, $282.1 million , with the $7.1 million premium being amortized as a reduction to interest expense over the remaining term, resulting in an effective interest rate of 4.36% . On November 30, 2018 , Kemper executed a guarantee to fully and unconditionally guarantee the payment and performance obligations of the 2022 Senior Notes. 4.35% Senior Notes Due 2025 Kemper has $450.0 million aggregate principal of 4.35% senior notes due February 15, 2025 (the “2025 Senior Notes”) outstanding as of December 31, 2019 . Kemper initially issued $250.0 million of the notes in February of 2015 and issued an additional $200.0 million of the notes in June of 2017 . The additional notes are fungible with the initial notes issued in 2015, and together are treated as part of a single series for all purposes under the indenture governing the 2025 Senior Notes. The 2025 Senior Notes are unsecured and may be redeemed in whole at any time or in part from time to time at Kemper’s option at specified redemption prices. Redemption of 7.375% Subordinated Debentures Due 2054 On June 7, 2019, Kemper issued a notice of redemption for the entire $150.0 million aggregate principal outstanding of its 7.375% Subordinated Debentures due 2054 (the “ 7.375% Subordinated Debentures”) at a redemption price equal to 100% of their principal, plus accrued and unpaid interest on the redemption date. On July 8, 2019 , Kemper completed the redemption, and the 7.375% Subordinated Debentures were repaid in full. The Company recognized a loss on early extinguishment of debt of $5.8 million in its December 31, 2019 Consolidated Statement of Income. The Company used the proceeds received from Kemper’s common stock offering on June 7, 2019 , as well as a portion of the proceeds from its July 5, 2019 borrowing under the 2023 Term Loan, to repay the 7.375% Subordinated Debentures. See Note 10, “Shareholders’ Equity,” for additional information regarding the common stock offering. Interest Expense and Interest Paid Interest Expense, including facility fees, accretion of discount, amortization of premium and amortization of issuance costs, was $42.5 million , $43.3 million and $34.9 million for the years ended December 31, 2019 , 2018 and 2017 , respectively. Interest paid, including facility fees, was $44.0 million , $37.9 million and $34.7 million for the years ended December 31, 2019 , 2018 and 2017 , respectively. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Leases | LEASES The Company leases certain office space under non-cancelable operating leases, with initial terms typically ranging from one to fifteen years, along with options that permit renewals for additional periods. The Company also leases certain equipment under non-cancelable operating leases, with initial terms typically ranging from one to five years. Minimum rent is expensed on a straight-line basis over the term of the lease. See Note 2, “Summary of Accounting Policies and Accounting Changes” under sub-caption “Adoption of New Accounting of New Accounting Guidance - Guidance Adopted in 2019” for additional information regarding the accounting for leases. The following table presents operating lease ROU assets and lease liabilities. DOLLARS IN MILLIONS 2019 Operating Lease Right-of-Use Assets $ 75.6 Operating Lease Liabilities 93.2 NOTE 9. LEASES (Continued) Lease expenses are primarily included in insurance expenses in the Consolidated Statements of Income. Additional information regarding the Company’s operating leases is presented below. DOLLARS IN MILLIONS 2019 Lease Cost: Amortization of Right-of-Use Assets - Finance Leases $ 0.7 Operating Lease Cost 20.7 Short-Term Lease Cost (1) 0.1 Total Expense 21.5 Less: Sublease Income (2) 0.1 Total Lease Cost $ 21.4 (1) - Leases with an initial term of twelve months of less are not recorded on the balance sheet. (2) - Sublease income consists of rent from third parties of office space and is recognized as part of other income in the Consolidated Statements of Income. Other Information on Operating Leases Supplemental cash flow information related to the Company’s operating leases for the year-ended December 31, 2019 is as follows: DOLLARS IN MILLIONS 2019 Operating Cash Flows from Operating Leases (Fixed Payments) $ 20.0 Operating Cash Flows from Operating Leases (Liability Reduction) 17.6 Financing Cash Flows from Finance Leases 0.7 Right-of-Use Assets Obtained in Exchange for New Operating Lease Liabilities 25.9 Significant judgments and assumptions for determining lease asset and liability as December 31, 2019 are presented below. Weighted-average Remaining Lease Term - Finance Leases 1.7 years Weighted-average Remaining Lease Term - Operating Leases 7.0 years Weighted-average Discount Rate - Finance Leases 4.0 % Weighted-average Discount Rate - Operating Leases 3.9 % Most of the Company’s leases do not provide an implicit rate. Accordingly, the Company uses its incremental borrowing rate based on the information available at the commencement date in determining the present value of its lease payments. Future minimum lease payments under finance and operating leases at December 31, 2019 were: DOLLARS IN MILLIONS Finance Leases Operating Leases 2020 $ 0.3 $ 20.5 2021 0.2 19.3 2022 — 17.0 2023 — 14.7 2024 — 8.3 2025 and Thereafter — 28.1 Total Future Payments $ 0.5 $ 107.9 Less Discount — 14.7 Present Value of Minimum Lease Payments $ 0.5 $ 93.2 NOTE 9. LEASES (Continued) Future minimum lease payments under finance and operating leases at December 31, 2018 were: DOLLARS IN MILLIONS Finance Leases Operating Leases 2019 $ 0.7 $ 20.5 2020 0.7 18.4 2021 0.3 16.9 2022 0.2 15.0 2023 — 12.5 2024 and Thereafter — 27.1 Total Future Payments $ 1.9 $ 110.4 Less Imputed Interest — Present Value of Minimum Lease Payments $ 1.9 The total of minimum rentals to be received in the future under non-cancelable subleases was $0.8 million and $0.0 million at December 31, 2019 and 2018 , respectively. |
Leases | LEASES The Company leases certain office space under non-cancelable operating leases, with initial terms typically ranging from one to fifteen years, along with options that permit renewals for additional periods. The Company also leases certain equipment under non-cancelable operating leases, with initial terms typically ranging from one to five years. Minimum rent is expensed on a straight-line basis over the term of the lease. See Note 2, “Summary of Accounting Policies and Accounting Changes” under sub-caption “Adoption of New Accounting of New Accounting Guidance - Guidance Adopted in 2019” for additional information regarding the accounting for leases. The following table presents operating lease ROU assets and lease liabilities. DOLLARS IN MILLIONS 2019 Operating Lease Right-of-Use Assets $ 75.6 Operating Lease Liabilities 93.2 NOTE 9. LEASES (Continued) Lease expenses are primarily included in insurance expenses in the Consolidated Statements of Income. Additional information regarding the Company’s operating leases is presented below. DOLLARS IN MILLIONS 2019 Lease Cost: Amortization of Right-of-Use Assets - Finance Leases $ 0.7 Operating Lease Cost 20.7 Short-Term Lease Cost (1) 0.1 Total Expense 21.5 Less: Sublease Income (2) 0.1 Total Lease Cost $ 21.4 (1) - Leases with an initial term of twelve months of less are not recorded on the balance sheet. (2) - Sublease income consists of rent from third parties of office space and is recognized as part of other income in the Consolidated Statements of Income. Other Information on Operating Leases Supplemental cash flow information related to the Company’s operating leases for the year-ended December 31, 2019 is as follows: DOLLARS IN MILLIONS 2019 Operating Cash Flows from Operating Leases (Fixed Payments) $ 20.0 Operating Cash Flows from Operating Leases (Liability Reduction) 17.6 Financing Cash Flows from Finance Leases 0.7 Right-of-Use Assets Obtained in Exchange for New Operating Lease Liabilities 25.9 Significant judgments and assumptions for determining lease asset and liability as December 31, 2019 are presented below. Weighted-average Remaining Lease Term - Finance Leases 1.7 years Weighted-average Remaining Lease Term - Operating Leases 7.0 years Weighted-average Discount Rate - Finance Leases 4.0 % Weighted-average Discount Rate - Operating Leases 3.9 % Most of the Company’s leases do not provide an implicit rate. Accordingly, the Company uses its incremental borrowing rate based on the information available at the commencement date in determining the present value of its lease payments. Future minimum lease payments under finance and operating leases at December 31, 2019 were: DOLLARS IN MILLIONS Finance Leases Operating Leases 2020 $ 0.3 $ 20.5 2021 0.2 19.3 2022 — 17.0 2023 — 14.7 2024 — 8.3 2025 and Thereafter — 28.1 Total Future Payments $ 0.5 $ 107.9 Less Discount — 14.7 Present Value of Minimum Lease Payments $ 0.5 $ 93.2 NOTE 9. LEASES (Continued) Future minimum lease payments under finance and operating leases at December 31, 2018 were: DOLLARS IN MILLIONS Finance Leases Operating Leases 2019 $ 0.7 $ 20.5 2020 0.7 18.4 2021 0.3 16.9 2022 0.2 15.0 2023 — 12.5 2024 and Thereafter — 27.1 Total Future Payments $ 1.9 $ 110.4 Less Imputed Interest — Present Value of Minimum Lease Payments $ 1.9 The total of minimum rentals to be received in the future under non-cancelable subleases was $0.8 million and $0.0 million at December 31, 2019 and 2018 , respectively. |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Shareholders' Equity | SHAREHOLDERS’ EQUITY Common Stock Issuance 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, 2019 and 2018 . There were 66,665,888 shares and 64,756,833 shares of common stock outstanding at December 31, 2019 and 2018 , respectively. On June 7, 2019 , the Company completed a public offering of its common stock and issued 1,552,500 shares of common stock, at $83.00 per share. Gross proceeds from the offering were $128.9 million . Transaction costs, including the underwriting discount, were $1.7 million , of which $0.1 million was accrued for and included in Accrued Expenses and Other Liabilities on the Company’s Consolidated Balance Sheet at December 31, 2019 . In July 2019, the Company used the net proceeds of $127.2 million from the offering, together with a portion of the proceeds from the 2023 Term Loan (see Note 8, “Debt” ) to redeem all $150.0 million in aggregate outstanding principal of its 7.375% Subordinated Debentures due 2054. In conjunction with the closing of the Infinity acquisition, Kemper issued 13,184,107 shares of common stock on July 2, 2018, at $74.53 per share. See Note 3 , “Acquisition of Business,” to the Consolidated Financial Statements for additional information. Kemper did not repurchase any of its common stock in open market transactions in 2019 , 2018 or 2017 . Employee Stock Purchase Plan During the second quarter of 2019 , the Company’s stockholders approved the adoption of the Kemper Employee Stock Purchase Plan (“ESPP”) and the reservation of 1,300,000 shares for issuance under the ESPP. The purpose of the ESPP is to provide eligible employees of the Company and its subsidiaries with the opportunity to purchase shares of common stock at a discounted price through payroll deductions with the goal of enhancing employees’ sense of participation in the Company and further align employee interests with those of the Company’s shareholders. Under the ESPP, eligible employees may purchase shares of Company common stock through payroll deductions of between 1% and 10% of after-tax compensation each pay period, with a maximum participation of $25,000 annually. The shares are purchased at the end of each three-month offering period at a 15% discount from the closing market price as reported on the New York Stock Exchange on the last trading day of the offering period. The Company issued 24,080 shares under the plan in 2019 at an average discounted price of $66.08 per share. Compensation costs charged against income were $0.3 million for the year ended December 31, 2019 . Dividends Various state insurance laws restrict the amount that an insurance subsidiary may pay in the form of dividends, loans or advances without the prior approval of regulatory authorities. Also, that portion of an insurance subsidiary’s net equity which results from differences between statutory insurance accounting practices and GAAP would not be available for cash dividends, loans or advances. Kemper’s insurance subsidiaries paid dividends of $239.0 million to Kemper in 2019 . In 2020 , Kemper’s NOTE 10. SHAREHOLDERS’ EQUITY (Continued) insurance subsidiaries would be able to pay $435.4 million in dividends to Kemper without prior regulatory approval. Kemper’s insurance subsidiaries had net assets of $3.9 billion , determined in accordance with GAAP, that were restricted from payment to Kemper without prior regulatory approval at December 31, 2019 . Kemper’s insurance subsidiaries are required to file financial statements prepared on the basis of statutory insurance accounting practices, a comprehensive basis of accounting other than GAAP. Statutory capital and surplus for the Company’s life and health insurance subsidiaries was $408.0 million and $454.7 million at December 31, 2019 and 2018 , respectively. Statutory net income for the Company’s life and health insurance subsidiaries was $90.4 million , $143.9 million and $84.1 million for the years ended December 31, 2019 , 2018 and 2017 , respectively. Statutory capital and surplus for the Company’s property and casualty insurance subsidiaries was $1.6 billion and $1.4 billion at December 31, 2019 and 2018 , respectively. Statutory net income for the Company’s property and casualty insurance subsidiaries was $347.6 million , $236.4 million and $56.9 million for the years ended December 31, 2019 , 2018 and 2017 , respectively. Statutory capital and surplus and statutory net income exclude parent company operations. Kemper’s insurance subsidiaries are also required to hold minimum levels of statutory capital and surplus to satisfy regulatory requirements. The minimum statutory capital and surplus, or company action level risk-based capital (“RBC”), necessary to satisfy regulatory requirements for the Company’s life and health insurance subsidiaries collectively was $122.0 million at December 31, 2019 . The minimum statutory capital and surplus necessary to satisfy regulatory requirements for the Company’s property and casualty insurance subsidiaries collectively was $641.9 million at December 31, 2019 . Company action level RBC is the level at which a company is required to file a corrective action plan with its regulators and is equal to 200% of the authorized control level RBC. In 2019 , Kemper paid dividends of $67.8 million to its shareholders. Except for certain financial covenants under Kemper’s credit agreement or during any period in which Kemper elects to defer interest payments, there are no restrictions on Kemper’s ability to pay dividends to its shareholders. Certain financial covenants, namely minimum net worth and a maximum debt to total capitalization ratio, under Kemper’s credit agreement could limit the amount of dividends that Kemper may pay to shareholders at December 31, 2019 . Kemper had the ability to pay without restrictions $1.3 billion in dividends to its shareholders and still be in compliance with all financial covenants under its credit agreement at December 31, 2019 . |
Long-term Equity-based Compensa
Long-term Equity-based Compensation | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Long-Term Equity-Based Compensation | LONG-TERM EQUITY-BASED COMPENSATION On May 4, 2011, Kemper’s shareholders approved the 2011 Omnibus Equity Plan (“2011 Omnibus Plan”). The 2011 Omnibus Plan replaced the Company’s previous employee stock option plans, director stock option plan and restricted stock plan (collectively, the “Prior Plans”). Awards previously granted under the Prior Plans remain outstanding in accordance with their original terms, but no new equity-based compensation awards can be granted under the Prior Plans. A maximum number of 10,000,000 shares of Kemper common stock may be issued under the 2011 Omnibus Plan (the “Share Authorization”). As of December 31, 2019 , there were 3,254,822 common shares available for future grants under the 2011 Omnibus Plan, of which 1,082,460 shares were reserved for future grants based on the performance results under the terms of outstanding performance share units (“PSUs”). The design of the 2011 Omnibus Plan provides for fungible use of shares to determine the number of shares available for future grants, with a fungible conversion factor of three to one, such that the Share Authorization will be reduced at two different rates, depending on the type of award granted. Each share of Kemper common stock issuable upon the exercise of stock options or stock appreciation rights will reduce the number of shares available for future grant under the Share Authorization by one share, while each share of Kemper common stock issued pursuant to “full value awards” will reduce the number of shares available for future grant under the Share Authorization by three shares. “Full value awards” are awards, other than stock options or stock appreciation rights, that are settled by the issuance of shares of Kemper common stock and include time-based restricted stock units (collectively “RSUs”), PSUs and deferred stock units (“DSUs”). Outstanding equity-based compensation awards at December 31, 2019 consisted of tandem stock option and stock appreciation rights (“Tandem Awards”), RSUs, PSUs and DSUs. RSUs, PSUs and DSUs give the recipient the right to receive one share of Kemper common stock for each RSU, PSU or DSU issued. Recipients of DSUs receive full dividend equivalents on the same basis as all other outstanding shares of Kemper common stock, but do not receive voting rights until such shares are issued. For grants beginning in November 2017, recipients of RSUs and PSUs receive dividend equivalents on the same basis as all other outstanding shares of Kemper common stock only if, to the extent, and at the time that they vest and on subsequent dividend payment dates after they vest until the awards are settled, and do not receive voting rights until such shares are issued. NOTE 11. LONG-TERM EQUITY-BASED COMPENSATION (Continued) For grants prior to November 2017, recipients of RSUs and PSUs receive full dividend equivalents on the same basis as all other outstanding shares of Kemper common stock, but do not receive voting rights until such shares are issued. Except as described below for certain equity-based compensation awards granted to each member of the Board of Directors who is not employed by the Company (“Non-employee Directors”), all outstanding awards are subject to forfeiture until certain restrictions have lapsed. For awards subject to a performance condition, the Company recognizes compensation expense based upon the probable outcome of the performance condition, which on the grant date reflects an estimate of attaining 100% of the performance units granted. The estimate is revised if the actual number of PSUs expected to vest is likely to differ from the previous estimate. Compensation expense for awards is recognized on a straight-line basis over the requisite service period. For equity-based compensation awards with a graded vesting schedule, the Company recognizes compensation expense on a straight-line basis over the requisite service period for each separately-vesting portion of the awards as if each award were, in substance, multiple awards. Compensation expense is recognized only for those awards expected to vest, with forfeitures estimated at the date of grant based on the Company’s historical experience and future expectations. Equity-based compensation expense was $25.3 million , $18.6 million and $9.4 million for the years ended December 31, 2019 , 2018 and 2017 , respectively. Total unamortized compensation expense related to unvested awards at December 31, 2019 was $20.4 million , which is expected to be recognized over the next three years ending December 31, 2020 , 2021 and 2022. The Compensation Committee of the Board of Directors, or the Board’s authorized designee, has sole discretion to determine the persons to whom awards under the 2011 Omnibus Plan are granted, and the material terms of the awards. For Tandem Awards, material terms include the number of shares covered by such awards and the exercise price, vesting and expiration dates of such awards. Tandem Awards are non-transferable. The exercise price of Tandem Awards is the fair value of Kemper’s common stock on the date of grant. Tandem Awards and RSU awards granted to employees generally vest in three equal annual installments over a period of three years , with the Tandem Awards expiring ten years from the date of grant. Employee PSU awards generally vest over a period of three years , subject to performance results and other restrictions. Under the Non-employee Director compensation program in effect for 2019 , each non-employee director received an annual RSU award with an aggregate grant date fair value of $130,000 (“Director RSUs”) at the conclusion of the 2019 annual shareholder meeting. The Director RSUs vest over a period of one year, enable the award holder to make an election to defer the conversion to shares of common stock in accordance with applicable deferral rules, and include the right to receive dividend equivalents on the same basis as all other outstanding shares of Kemper common stock only if, to the extent, and at the time that they vest and on subsequent dividend payment dates after they vest until the awards are settled. Under the Non-employee Director compensation program in effect for 2018 and 2017 , each non-employee director received an annual DSU award with an aggregate grant date fair value of $110,000 at the conclusion of each annual shareholder meeting. The DSUs granted to Non-employee Directors are fully vested on the date of grant and include the right to receive full dividend equivalents on the same basis as all other outstanding shares of Kemper common stock. Conversion of the DSUs into shares of Kemper’s common stock is deferred until the date a director’s board service terminates. The Company uses the Black-Scholes option pricing model to estimate the fair value of each Tandem Award on the date of grant. The expected terms of Tandem Awards are developed by considering the Company’s historical Tandem Award exercise experience, demographic profiles, historical share retention practices of employees and assumptions about their propensity for early exercise in the future. Expected volatility is estimated using weekly historical volatility. The Company believes that historical volatility is currently the best estimate of expected volatility. The dividend yield in 2019 , 2018 and 2017 was calculated by taking the natural logarithm of the annualized yield divided by the Kemper common stock price on the date of grant. The risk-free interest rate was the yield on the grant date of U.S. Treasury zero coupon issues with a maturity comparable to the expected term of the option. NOTE 11. LONG-TERM EQUITY-BASED COMPENSATION (Continued) The assumptions used in the Black-Scholes pricing model for Tandem Awards granted during the years ended December 31, 2019 , 2018 and 2017 are presented below. 2019 2018 2017 RANGE OF VALUATION ASSUMPTIONS Expected Volatility 28.97 % - 33.78 % 27.31 % - 32.15 % 26.17 % - 30.39 % Risk-free Interest Rate 1.35 - 2.60 2.44 - 3.00 1.59 - 2.25 Expected Dividend Yield 1.05 - 1.38 1.16 - 1.72 1.39 - 2.43 WEIGHTED-AVERAGE EXPECTED LIFE IN YEARS Employee Grants 4 - 6 4 - 6 4 - 6.5 Tandem Award activity for the year ended December 31, 2019 is presented below. Shares Subject to Awards Weighted- average Exercise Price Per Share ($) Weighted- average Remaining Contractual Life (in Years) Aggregate Intrinsic Value ($ In Millions) Outstanding at Beginning of the Year 1,434,273 $ 46.48 Granted 578,375 76.96 Exercised (159,630 ) 36.92 Forfeited or Expired (44,203 ) 68.43 Outstanding at December 31, 2019 1,808,815 56.53 7.65 $ 38.3 Vested and Expected to Vest at December 31, 2019 1,718,559 $ 56.03 7.61 $ 37.2 Exercisable at December 31, 2019 803,769 $ 42.15 6.50 $ 28.4 The weighted-average grant-date fair values of Tandem Awards granted during 2019 , 2018 and 2017 were $20.99 , $15.14 and $8.89 , respectively. Total intrinsic value of Tandem Awards exercised was $7.7 million , $3.9 million and $4.9 million for the years ended December 31, 2019 , 2018 and 2017 , respectively. Cash received from exercises of Tandem Awards was $2.4 million , $0.9 million and $4.0 million for the years ended December 31, 2019 , 2018 and 2017 , respectively. Total tax benefit realized for tax deductions from exercises of Tandem Awards was $1.6 million , $0.8 million and $1.7 million for the years ended December 31, 2019 , 2018 and 2017 , respectively. Information pertaining to Tandem Awards outstanding at December 31, 2019 is presented below. Outstanding Exercisable Range of Exercise Prices ($) Shares Subject to Awards Weighted- average Exercise Price Per Share ($) Weighted- average Remaining Contractual Life (in Years) Shares Subject to Awards Weighted- average Exercise Price Per Share ($) $ 20.01 - 30.00 150,627 $ 27.77 5.63 150,627 $ 27.77 30.01 - 40.00 173,895 34.83 5.36 165,086 34.58 40.01 - 50.00 401,385 42.56 6.79 313,459 42.41 50.01 - 60.00 461,459 59.90 8.07 147,944 59.89 60.01 - 70.00 57,395 67.04 8.14 22,289 66.85 70.01 - 80.00 518,820 76.27 9.09 3,435 77.76 80.01 - 90.00 45,234 85.44 9.30 929 82.10 20.01 - 90.00 1,808,815 56.53 7.65 803,769 42.15 The grant-date fair values of RSUs are determined using the closing price of Kemper common stock on the date of grant. NOTE 11. LONG-TERM EQUITY-BASED COMPENSATION (Continued) Activity related to nonvested RSUs for the year ended December 31, 2019 is presented below. Time-based Restricted Stock Unit Awards Number of Restricted Stock Units Weighted- average Grant-date Fair Value Per Unit Nonvested Balance at Beginning of the Year 316,241 $ 65.36 Granted 23,383 82.56 Vested (135,909 ) 61.59 Forfeited (21,527 ) 69.48 Nonvested Balance at December 31, 2019 182,188 $ 71.12 The initial number of PSUs awarded to each participant represents the number of Kemper common shares that would vest and be issued if the performance level attained were to be at the “target” performance level. For performance above the target level, each participant would receive a grant of additional shares of stock up to a maximum of 100% of the initial number of PSUs awarded to the participant. The final payout of these awards, and any forfeitures of PSUs for performance below the “target” performance level, will be determined based on the Company’s performance. If, at the end of the applicable performance period, the Company’s performance: • exceeds the “target” performance level, all of the PSUs will vest and additional shares of stock will be issued to the award recipient; • is below the “target” performance level, but at or above a “minimum” performance level, only a portion of the PSUs originally issued to the award recipient will vest; or • is below a “minimum” performance level, none of the PSUs originally issued to the award recipient will vest. Activity related to nonvested PSU awards for the year ended December 31, 2019 is presented below. PSU Awards Number of PSUs Weighted- average Grant-date Fair Value Per PSU Nonvested Balance at Beginning of the Year 327,300 $ 47.14 Granted 254,535 61.22 Vested (204,542 ) 29.20 Forfeited (16,473 ) 65.55 Nonvested Balance at December 31, 2019 360,820 $ 66.42 The number of additional shares that would be granted if the Company were to meet or exceed the maximum performance levels related to the outstanding PSU awards for the 2019 , 2018 and 2017 three-year performance periods was 146,134 common shares, 137,343 common shares and 77,343 common shares, respectively, (as “full value awards,” the equivalent of 438,402 shares, 412,029 shares, and 232,029 shares, respectively, under the Share Authorization) at December 31, 2019 . The grant date fair values of the PSU awards with a market performance condition are determined using the Monte Carlo simulation method. The Monte Carlo simulation model produces a risk-neutral simulation of the daily returns on the common stock of Kemper and each of the other companies included in the peer group. Returns generated by the simulation depend on the risk-free interest rate used and the volatilities of, and the correlation between, these stocks. The model simulates stock prices and dividend payouts to the end of the three-year performance period. Total shareholder returns are generated for each of these stocks based on the simulated prices and dividend payouts. The total shareholder returns are then ranked, and Kemper’s simulated ranking is converted to a payout percentage based on the terms of the PSU awards. The payout percentage is applied to the simulated stock price at the end of the performance period, reinvested dividends are added back, and the total is NOTE 11. LONG-TERM EQUITY-BASED COMPENSATION (Continued) discounted to the valuation date at the risk-free rate. This process is repeated approximately ten thousand times, and the grant date fair value is equal to the average of the results from these trials. Fifty percent of the PSU awards granted to employees and officers in 2019 , 2018 and 2017 are measured using a market performance condition. Fair value for these awards was estimated using the Monte Carlo simulation method described above. Final payout for these awards, and any forfeitures of units for performance below the “target” performance level, will be based on Kemper’s total shareholder return, relative to a peer group comprised of all the companies in the S&P Supercomposite Insurance Index, over a three-year performance period. The three-year performance periods for the 2019 , 2018 and 2017 awards end on January 31, 2022, January 31, 2021 and January 31, 2020, respectively. Compensation cost for these awards is recognized ratably over the requisite service period. In the event that the market performance condition is not satisfied, previously recognized compensation cost would not reverse, but it would reverse if the requisite service period is not met. Fifty percent of the PSU awards granted to employees and officers in 2019 , 2018 and 2017 are measured solely using a Company-specific metric. Final payout for these awards, and any forfeitures of shares for performance below the “target” performance level, will be determined based on Kemper’s adjusted return on equity over a three-year performance period. The three-year performance periods for the 2019 , 2018 and 2017 awards end on December 31, 2021, December 31, 2020 and December 31, 2019, respectively. Fair value for these awards was determined using the closing price of Kemper common stock on the date of grant. Accruals of compensation cost for these awards are estimated based on the probable outcome of the performance condition. The total fair value of RSUs and PSUs that vested during the year ended December 31, 2019 was $24.8 million . The tax benefits for tax deductions realized from such awards was $5.2 million . The total fair value of RSUs and PSUs that vested during the year ended December 31, 2018 was $8.7 million . The tax benefits for tax deductions realized from such awards was $1.8 million . The total fair value of RSUs and PSUs that vested during the year ended December 31, 2017 was $3.2 million . The tax benefits for tax deductions realized from such awards was $1.1 million . The grant-date fair values of DSU awards granted to Non-employee Directors are determined using the closing price of Kemper common stock on the date of grant. The total fair value of DSUs that vested during the years ended December 31, 2018 and 2017 was $1.0 million and $0.9 million , respectively. Activity related to DSU awards for the year ended December 31, 2019 is presented below. Number of DSUs Weighted- average Grant-date Fair Value Per DSU Vested Balance at Beginning of the Year 57,340 $ 44.89 Reduction for Shares Issued on Conversion (12,520 ) 45.44 Vested Balance at December 31, 2019 44,820 $ 44.74 |
Income from Continuing Operatio
Income from Continuing Operations Per Unrestricted Share | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Income from Continuing Operations Per Unrestricted Share | INCOME FROM CONTINUING OPERATIONS PER UNRESTRICTED SHARE The Company’s awards of deferred stock units contain rights to receive non-forfeitable dividend equivalents and participate in the undistributed earnings with common shareholders, as did the Company’s awards of restricted stock units and performance share units prior to 2018. Accordingly, the Company is required to apply the two-class method of computing basic and diluted earnings per share. A reconciliation of the numerator and denominator used in the calculation of Basic Income from Continuing Operations Per Unrestricted Share and Diluted Income from Continuing Operations Per Unrestricted Share for the years ended December 31, 2019 , 2018 and 2017 is presented below. 2019 2018 2017 DOLLARS IN MILLIONS Income from Continuing Operations $ 531.1 $ 188.4 $ 119.9 Less Income from Continuing Operations Attributed to Participating Awards 1.7 1.0 0.8 Income from Continuing Operations Attributed to Unrestricted Shares 529.4 187.4 119.1 Dilutive Effect on Income of Equity-based Compensation Equivalent Shares — — — Diluted Income from Continuing Operations Attributed to Unrestricted Shares $ 529.4 $ 187.4 $ 119.1 SHARES IN THOUSANDS Weighted-average Unrestricted Shares Outstanding 65,880.9 58,149.4 51,345.6 Equity-based Compensation Equivalent Shares 667.2 602.5 232.3 Weighted-average Unrestricted Shares and Equivalent Shares Outstanding Assuming Dilution 66,548.1 58,751.9 51,577.9 PER UNRESTRICTED SHARE IN WHOLE DOLLARS Basic Income from Continuing Operations Per Unrestricted Share $ 8.04 $ 3.22 $ 2.32 Diluted Income from Continuing Operations Per Unrestricted Share $ 7.96 $ 3.19 $ 2.31 The number of shares of Kemper common stock that were excluded from the calculations of Equity-based Compensation Equivalent Shares and Weighted-average Unrestricted Shares and Equivalent Shares Outstanding Assuming Dilution for the years ended December 31, 2019 , 2018 and 2017 , because the effect of inclusion would be anti-dilutive, is presented below. SHARES IN THOUSANDS 2019 2018 2017 Equity-based Compensation Equivalent Shares 556.4 231.3 346.6 Weighted-average Unrestricted Shares and Equivalent Shares Outstanding Assuming Dilution 556.4 231.3 346.6 |
Other Comprehensive Income (Los
Other Comprehensive Income (Loss) And Accumulated Other Comprehensive Income | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Other Comprehensive Income (Loss) and Accumulated Other Comprehensive Income | OTHER COMPREHENSIVE INCOME (LOSS) AND ACCUMULATED OTHER COMPREHENSIVE INCOME The components of Other Comprehensive Income (Loss) Before Income Taxes for the years ended December 31, 2019 , 2018 and 2017 were: DOLLARS IN MILLIONS 2019 2018 2017 Other Comprehensive Income (Loss) Before Income Taxes: Unrealized Holding Gains (Losses) Arising During the Year Before Reclassification Adjustment $ 433.4 $ (214.2 ) $ 119.1 Reclassification Adjustment for Amounts Included in Net Income (28.1 ) (21.9 ) (35.3 ) Unrealized Holding Gains (Losses) 405.3 (236.1 ) 83.8 Foreign Currency Translation Adjustments Arising During the Year Before Reclassification Adjustment — — 1.7 Reclassification Adjustment for Amounts Included in Net Income — 0.3 — Foreign Currency Translation Adjustments — 0.3 1.7 Net Unrecognized Postretirement Benefit Costs Arising During the Year (4.8 ) (8.0 ) 3.9 Reclassification Adjustments for Amounts Included in Net Income: Amortization of Net Unrecognized Postretirement Benefit Costs (3.0 ) 1.1 (0.6 ) Total Reclassification Adjustments for Amounts Included in Net Income (3.0 ) 1.1 (0.6 ) Net Unrecognized Postretirement Benefit Costs (7.8 ) (6.9 ) 3.3 Gains (Losses) on Cash Flow Hedges During the Year Before Reclassification Adjustment — 0.9 (8.0 ) Reclassification Adjustment for Amounts Included in Net Income 0.4 0.3 1.3 Gains (Losses) on Cash Flow Hedges 0.4 1.2 (6.7 ) Other Comprehensive Income (Loss) Before Income Taxes $ 397.9 $ (241.5 ) $ 82.1 NOTE 13. OTHER COMPREHENSIVE INCOME (LOSS) AND ACCUMULATED OTHER COMPREHENSIVE INCOME (Continued) The components of Other Comprehensive Income Tax Benefit (Expense) for the years ended December 31, 2019 , 2018 and 2017 were: DOLLARS IN MILLIONS 2019 2018 2017 Income Tax Benefit (Expense): Unrealized Holding Gains (Losses) Arising During the Year Before Reclassification Adjustment $ (91.0 ) $ 45.0 $ (38.2 ) Reclassification Adjustment for Amounts Included in Net Income 5.8 4.6 12.3 Unrealized Holding Gains (Losses) (85.2 ) 49.6 (25.9 ) Foreign Currency Translation Adjustments Arising During the Year Before Reclassification Adjustment — — (0.6 ) Reclassification Adjustment for Amounts Included in Net Income — (0.1 ) — Foreign Currency Translation Adjustment — (0.1 ) (0.6 ) Net Unrecognized Postretirement Benefit Costs Arising During the Year 1.0 1.7 (0.8 ) Reclassification Adjustments for Amounts Included in Net Income: Amortization of Net Unrecognized Postretirement Benefit Costs 0.7 (0.2 ) 0.2 Total Reclassification Adjustments for Amounts Included in Net Income 0.7 (0.2 ) 0.2 Net Unrecognized Postretirement Benefit Costs 1.7 1.5 (0.6 ) Gains (Losses) on Cash Flow Hedges During the Year Before Reclassification Adjustment — (0.2 ) 2.8 Reclassification Adjustment for Amounts Included in Net Income (0.1 ) (0.1 ) (0.4 ) Gains (Losses) on Cash Flow Hedges (0.1 ) (0.3 ) 2.4 Other Comprehensive Income Tax Benefit (Expense) $ (83.6 ) $ 50.7 $ (24.7 ) The components of AOCI at December 31, 2019 and 2018 were: DOLLARS IN MILLIONS 2019 2018 Net Unrealized Gains on Investments, Net of Income Taxes: Other Net Unrealized Gains on Investments $ 439.4 $ 119.3 Net Unrecognized Postretirement Benefit Costs, Net of Income Taxes (100.6 ) (94.5 ) Losses on Cash Flow Hedges, Net of Income Taxes (2.7 ) (3.0 ) Accumulated Other Comprehensive Income $ 336.1 $ 21.8 NOTE 13. OTHER COMPREHENSIVE INCOME (LOSS) AND ACCUMULATED OTHER COMPREHENSIVE INCOME (Continued) Components of AOCI were reclassified to the following lines of the Consolidated Statements of Income for the years ended December 31, 2019 , 2018 and 2017 : DOLLARS IN MILLIONS 2019 2018 2017 Reclassification of AOCI from Net Unrealized Gains and Losses on Investments to: Net Realized Gains on Sales of Investments $ 41.9 $ 26.4 $ 49.6 Net Impairment Losses Recognized in Earnings (13.8 ) (4.5 ) (14.3 ) Total Before Income Taxes 28.1 21.9 35.3 Income Tax Expense (5.8 ) (4.6 ) (12.3 ) Reclassification from AOCI, Net of Income Taxes 22.3 17.3 23.0 Reclassification of AOCI from Unrecognized Postretirement Benefit Costs to: Interest and Other Expenses (Income) 3.0 (1.1 ) 0.6 Income Tax Benefit (Expense) (0.7 ) 0.2 (0.2 ) Reclassification from AOCI, Net of Income Taxes 2.3 (0.9 ) 0.4 Reclassification of AOCI from Loss on Cash Flow Hedges to: Interest and Other Expenses (0.4 ) (0.3 ) (1.3 ) Income Tax Benefit 0.1 0.1 0.4 Reclassification from AOCI, Net of Income Taxes (0.3 ) (0.2 ) (0.9 ) Total Reclassification from AOCI to Net Income $ 24.3 $ 16.2 $ 22.5 |
Income from Investments
Income from Investments | 12 Months Ended |
Dec. 31, 2019 | |
Investment Income, Net [Abstract] | |
Income from Investments | INVESTMENTS Fixed Maturities The amortized cost and estimated fair values of the Company’s Investments in Fixed Maturities at December 31, 2019 were: DOLLARS IN MILLIONS Amortized Cost Gross Unrealized Fair Value Gains Losses U.S. Government and Government Agencies and Authorities $ 784.7 $ 32.5 $ (1.3 ) $ 815.9 States and Political Subdivisions 1,386.4 130.5 (1.1 ) 1,515.8 Foreign Governments 17.2 1.2 (1.6 ) 16.8 Corporate Securities: Bonds and Notes 3,465.0 401.8 (7.1 ) 3,859.7 Redeemable Preferred Stocks 6.8 — (0.1 ) 6.7 Collateralized Loan Obligations 624.6 2.1 (8.5 ) 618.2 Other Mortgage- and Asset-backed 88.0 2.1 (1.1 ) 89.0 Investments in Fixed Maturities $ 6,372.7 $ 570.2 $ (20.8 ) $ 6,922.1 NOTE 4. INVESTMENTS (Continued) The amortized cost and estimated fair values of the Company’s Investments in Fixed Maturities at December 31, 2018 were: Amortized Cost Gross Unrealized Fair Value DOLLARS IN MILLIONS Gains Losses U.S. Government and Government Agencies and Authorities $ 865.9 $ 14.8 $ (15.0 ) $ 865.7 States and Political Subdivisions 1,553.7 74.0 (8.6 ) 1,619.1 Foreign Governments 6.5 — (0.6 ) 5.9 Corporate Securities: Bonds and Notes 3,307.8 135.1 (49.1 ) 3,393.8 Collateralized Loan Obligations 535.7 1.5 (13.2 ) 524.0 Other Mortgage- and Asset-backed 14.9 0.9 (0.1 ) 15.7 Investments in Fixed Maturities $ 6,284.5 $ 226.3 $ (86.6 ) $ 6,424.2 Other Receivables included $1.0 million and $0.5 million of unsettled sales of Investments in Fixed Maturities at December 31, 2019 and December 31, 2018 , respectively.Accrued Expenses and Other Liabilities included unsettled purchases of Investments in Fixed Maturities of $19.5 million and $10.5 million at December 31, 2019 and 2018 , respectively. The amortized cost and estimated fair values of the Company’s Investments in Fixed Maturities at December 31, 2019 by contractual maturity were: DOLLARS IN MILLIONS Amortized Cost Fair Value Due in One Year or Less $ 82.5 $ 85.1 Due after One Year to Five Years 882.3 909.2 Due after Five Years to Ten Years 1,581.7 1,708.9 Due after Ten Years 2,535.3 2,916.6 Mortgage- and Asset-backed Securities Not Due at a Single Maturity Date 1,290.9 1,302.3 Investments in Fixed Maturities $ 6,372.7 $ 6,922.1 The expected maturities of the Company’s Investments in Fixed Maturities may differ from the contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties. Investments in Mortgage- and Asset-backed Securities Not Due at a Single Maturity Date at December 31, 2019 consisted of securities issued by the Government National Mortgage Association with a fair value of $575.9 million , securities issued by the Federal National Mortgage Association with a fair value of $7.1 million , securities issued by the Federal Home Loan Mortgage Corporation with a fair value of $12.2 million and securities of other non-governmental issuers with a fair value of $707.1 million . NOTE 4. INVESTMENTS (Continued) An aging of unrealized losses on the Company’s Investments in Fixed Maturities at December 31, 2019 is presented below. DOLLARS IN MILLIONS Less Than 12 Months 12 Months or Longer Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Fixed Maturities: U.S. Government and Government Agencies and Authorities $ 118.5 $ (1.3 ) $ 5.1 $ — $ 123.6 $ (1.3 ) States and Political Subdivisions 63.0 (0.7 ) 5.4 (0.4 ) 68.4 (1.1 ) Foreign Governments 1.0 (0.3 ) 3.1 (1.3 ) 4.1 (1.6 ) Corporate Securities: Bonds and Notes 160.0 (2.1 ) 70.7 (5.0 ) 230.7 (7.1 ) Redeemable Preferred Stocks 5.5 (0.1 ) — — 5.5 (0.1 ) Collateralized Loan Obligations 95.5 (1.9 ) 355.6 (6.6 ) 451.1 (8.5 ) Other Mortgage- and Asset-backed 72.8 (1.1 ) — — 72.8 (1.1 ) Total Fixed Maturities 516.3 (7.5 ) 439.9 (13.3 ) 956.2 (20.8 ) The Company regularly reviews its fixed maturity investment portfolio for factors that may indicate that a decline in fair value of an investment is other than temporary. The portions of the declines in the fair values of fixed maturity investments that are determined to be other than temporary are reported as losses in the Consolidated Statements of Income in the periods when such determinations are made. Unrealized losses on fixed maturities, which the Company has determined to be temporary at December 31, 2019 , were $20.8 million , of which $13.3 million was related to fixed maturities that were in an unrealized loss position for 12 months or longer. There were $0.3 million of unrealized losses at December 31, 2019 related to securities for which the Company has recognized credit losses in earnings in the preceding table under the heading “Less Than 12 Months.” There were no unrealized losses at December 31, 2019 related to securities for which the Company has recognized credit losses in earnings in the preceding table under the heading “12 Months or Longer.” Investment-grade fixed maturity investments comprised $9.1 million and below-investment-grade fixed maturity investments comprised $11.7 million of the unrealized losses on investments in fixed maturities at December 31, 2019 . For below-investment-grade fixed maturity investments in an unrealized loss position, the unrealized loss amount, on average, was approximately 5% of the amortized cost basis of the investment. At December 31, 2019 , the Company did not have the intent to sell these investments and it was not more likely than not that the Company would be required to sell these investments before it recovered the amortized cost of such investments, which may be at maturity. Based on the Company’s evaluation at December 31, 2019 of the prospects of the issuers, including, but not limited to, the credit ratings of the issuers of the investments in the fixed maturities, and the Company’s intention to not sell and its determination that it would not be required to sell before it recovered the amortized cost of such investments, the Company concluded that the declines in the fair values of the Company’s investments in fixed maturities presented in the preceding table were temporary at the evaluation date. NOTE 4. INVESTMENTS (Continued) An aging of unrealized losses on the Company’s Investments in Fixed Maturities at December 31, 2018 is presented below. DOLLARS IN MILLIONS Less Than 12 Months 12 Months or Longer Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Fixed Maturities: U.S. Government and Government Agencies and Authorities $ 401.1 $ (7.6 ) $ 79.0 $ (7.4 ) $ 480.1 $ (15.0 ) States and Political Subdivisions 299.4 (5.0 ) 102.6 (3.6 ) 402.0 (8.6 ) Foreign Governments 4.9 (0.6 ) — — 4.9 (0.6 ) Corporate Securities: Bonds and Notes 1,326.0 (38.2 ) 116.8 (10.9 ) 1,442.8 (49.1 ) Collateralized Loan Obligations 439.2 (13.2 ) — — 439.2 (13.2 ) Other Mortgage- and Asset-backed 0.2 — 4.5 (0.1 ) 4.7 (0.1 ) Total Fixed Maturities $ 2,470.8 $ (64.6 ) $ 302.9 $ (22.0 ) $ 2,773.7 $ (86.6 ) Unrealized losses on fixed maturities, which the Company determined to be temporary at December 31, 2018 , were $86.6 million , of which $22.0 million was related to fixed maturities that were in an unrealized loss position for 12 months or longer. There were no unrealized losses at December 31, 2018 related to securities for which the Company has recognized credit losses in earnings in the preceding table under the heading “Less Than 12 Months.” There were no unrealized losses at December 31, 2018 related to securities for which the Company has recognized credit losses in earnings in the preceding table under the heading “12 Months or Longer.” Investment-grade fixed maturity investments comprised $69.5 million and below-investment-grade fixed maturity investments comprised $17.1 million of the unrealized losses on investments in fixed maturities at December 31, 2018 . For below-investment-grade fixed maturity investments in an unrealized loss position, the unrealized loss amount, on average, was less than 5% of the amortized cost basis of the investment. At December 31, 2018 , the Company did not have the intent to sell these investments and it was not more likely than not that the Company would be required to sell these investments before recovery of its amortized cost basis, which may be at maturity. Based on the Company’s evaluation at December 31, 2018 of the prospects of the issuers, including, but not limited to, the credit ratings of the issuers of the investments in the fixed maturities, and the Company’s intention to not sell and its determination that it would not be required to sell before recovery of the amortized cost of such investments, the Company concluded that the declines in the fair values of the Company’s investments in fixed maturities presented in the preceding table were temporary at the evaluation date. The following table sets forth the pre-tax amount of other-than-temporary impairments (“OTTI”) credit losses, recognized in Retained Earnings for Investments in Fixed Maturities held by the Company as of the beginning and end of the periods presented for which a portion of the OTTI loss related to factors other than credit has been recognized in AOCI, and the corresponding changes in such amounts. DOLLARS IN MILLIONS 2019 2018 2017 Cumulative Balance of Pre-tax Credit Losses Recognized in Retained Earnings at Beginning of Year $ 1.1 $ 1.6 $ 1.4 Pre-tax Credit Losses on Fixed Maturities without Pre-tax Credit Losses Included in Cumulative Balance at Beginning of Year 0.2 — 1.2 Reductions for Change in Impairment Status: From Status of Credit Loss to Status of Intent-to-sell or Required-to-sell — (0.5 ) (0.7 ) Reductions for Investments Sold During Year (0.1 ) — (0.3 ) Cumulative Balance of Pre-tax Credit Losses Recognized in Retained Earnings at End of Year $ 1.2 $ 1.1 $ 1.6 NOTE 4. INVESTMENTS (Continued) Equity Securities Equity Securities at Fair Value Equity securities with readily-determinable fair values, including equity securities which the Company previously classified as Fair Value Option Investments, are classified as Equity Securities at Fair Value in the Consolidated Balance Sheets with changes in fair value recorded as Income from Change in Fair Value of Equity and Convertible Securities in the Consolidated Statements of Income. Net unrealized losses arising during the year-ended December 31, 2019 and recognized in earnings, related to such investments still held as of December 31, 2019 were $126.0 million . Equity Securities at Modified Cost For Equity Securities at Modified Cost, the Company performs a qualitative impairment analysis on a quarterly basis consisting of various factors such as earnings performance, current market conditions, changes in credit ratings, changes in the regulatory environment and other factors. If the qualitative analysis identifies the presence of impairment indicators, the Company estimates the fair value of the investment. If the estimated fair value is below the carrying value, the Company records an other-than-temporary impairment in the Consolidated Statements of Income to reduce the carrying value to the estimated fair value. When the Company identifies observable transactions of the same or similar securities to those held by the Company, the Company increases or decreases the carrying value to the observable transaction price. The Company recognized a decrease of $0.5 million in the carrying value due to observable transactions for the year ended December 31, 2019 . The Company recognized an impairment of $0.1 million on Equity Securities at Modified Cost for the year ended December 31, 2019 as a result of the Company’s qualitative impairment analysis. The Company has recognized no cumulative increases in the carrying value due to observable transactions, no cumulative decreases in the carrying value due to observable transactions and $5.0 million of cumulative impairments on Equity Securities at Modified Cost held as of December 31, 2019 . Equity Method Limited Liability Investments Equity Method Limited Liability Investments include investments in limited liability investment companies and limited partnerships in which the Company’s interests are not deemed minor and are accounted for under the equity method of accounting. The Company’s investments in Equity Method Limited Liability Investments are generally of a passive nature in that the Company does not take an active role in the management of the investment entity. In 2019 and 2018 , aggregate investment income (losses) from Equity Method Limited Liability Investments exceeded 10% of the Company’s pretax consolidated net income. Accordingly, the Company is disclosing aggregated summarized financial data for its Equity Method Limited Liability Investments for all periods presented in the Consolidated Financial Statements. Such aggregated summarized financial data does not represent the Company’s proportionate share of the Equity Method Limited Liability Investment assets or earnings. Aggregate total assets of the Equity Method Limited Liability Investments in which the Company invested totaled $2,368.1 million , $2,805.3 million and $2,393.7 million , as of December 31, 2019 , 2018 and 2017 , respectively. Aggregate total liabilities of the Equity Method Limited Liability Investments in which the Company invested totaled $817.2 million , $1,030.7 million and $899.7 million , as of December 31, 2019 , 2018 and 2017 , respectively. Aggregate net income of the Equity Method Limited Liability Investments in which the Company invested totaled $78.0 million , $130.4 million and $209.3 million for the years ended December 31, 2019 , 2018 and 2017 , respectively. The aggregate summarized financial data is based on the most recent and sufficiently-timely financial information available to the Company as of the respective reporting dates and periods. The Company’s maximum exposure to loss at December 31, 2019 is limited to the total carrying value of $220.4 million . In addition, the Company had outstanding commitments totaling approximately $97.2 million to fund Equity Method Limited Liability Investments at December 31, 2019 . Other Investments The carrying values of the Company’s Other Investments at December 31, 2019 and 2018 were: DOLLARS IN MILLIONS 2019 2018 Loans to Policyholders at Unpaid Principal $ 305.6 $ 300.6 Real Estate at Depreciated Cost 111.4 114.2 Mortgage Loans at Amortized Cost 27.5 — Total $ 444.5 $ 414.8 Net Investment Income for the years ended December 31, 2019 , 2018 and 2017 was: DOLLARS IN MILLIONS 2019 2018 2017 Investment Income: Interest on Fixed Income Securities $ 299.4 $ 268.9 $ 246.6 Dividends on Equity Securities Excluding Alternative Investments 22.9 13.6 9.3 Alternative Investments: Equity Method Limited Liability Investments 1.0 11.0 24.8 Fair Value Option Investments — — 1.3 Limited Liability Investments Included in Equity Securities 18.0 26.4 28.6 Total Alternative Investments 19.0 37.4 54.7 Short-term Investments 8.2 7.0 1.6 Loans to Policyholders 22.6 22.5 21.6 Real Estate 9.8 9.6 10.7 Other 1.5 0.9 0.5 Total Investment Income 383.4 359.9 345.0 Investment Expenses: Real Estate 9.6 9.7 10.5 Other Investment Expenses 9.5 9.3 7.3 Total Investment Expenses 19.1 19.0 17.8 Net Investment Income $ 364.3 $ 340.9 $ 327.2 NOTE 14. INCOME FROM INVESTMENTS (Continued) Other Receivables includes accrued investment income of $78.7 million and $77.9 million at December 31, 2019 and 2018 , respectively. The components of Net Realized Gains on Sales of Investments for the years ended December 31, 2019 , 2018 and 2017 were: DOLLARS IN MILLIONS 2019 2018 2017 Fixed Maturities: Gains on Sales $ 41.1 $ 25.3 $ 8.4 Losses on Sales (4.8 ) (11.1 ) (0.9 ) Equity Securities: Gains on Sales 5.8 12.3 42.0 Losses on Sales (0.2 ) — — Real Estate: Gains on Sales — — 6.4 Other Investments: Gains on Other Sales — — 0.1 Losses on Sales — (0.1 ) (0.1 ) Net Gains on Trading Securities — — 0.6 Net Realized Gains on Sales of Investments $ 41.9 $ 26.4 $ 56.5 Gross Gains on Sales $ 46.9 $ 37.6 $ 56.9 Gross Losses on Sales (5.0 ) (11.2 ) (1.0 ) Net Gains on Trading Securities — — 0.6 Net Realized Gains on Sales of Investments $ 41.9 $ 26.4 $ 56.5 The components of Net Impairment Losses Recognized in Earnings reported in the Consolidated Statements of Income for the years ended December 31, 2019 , 2018 and 2017 were: DOLLARS IN MILLIONS 2019 2018 2017 Fixed Maturities $ (13.3 ) $ (2.0 ) $ (12.1 ) Equity Securities (0.5 ) (2.5 ) (2.2 ) Net Impairment Losses Recognized in Earnings $ (13.8 ) $ (4.5 ) $ (14.3 ) |
Insurance Expenses
Insurance Expenses | 12 Months Ended |
Dec. 31, 2019 | |
Insurance Expenses [Abstract] | |
Insurance Expenses | NOTE 15. INSURANCE EXPENSES Insurance Expenses for the years ended December 31, 2019 , 2018 and 2017 were: DOLLARS IN MILLIONS 2019 2018 2017 Commissions $ 708.8 $ 558.7 $ 425.6 General Expenses 278.0 231.9 196.2 Premium Tax Expense 93.5 71.0 50.7 Total Costs Incurred 1,080.3 861.6 672.5 Policy Acquisition Costs: Deferred (475.2 ) (481.5 ) (351.6 ) Amortized 408.3 377.1 318.3 Net Policy Acquisition Costs Amortized (66.9 ) (104.4 ) (33.3 ) Amortization of VOBA 6.3 143.3 5.1 Insurance Expenses $ 1,019.7 $ 900.5 $ 644.3 Commissions for servicing policies are expensed as incurred, rather than deferred and amortized. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES 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, 2019 and 2018 were: DOLLARS IN MILLIONS 2019 2018 Deferred Income Tax Assets: Insurance Reserves $ 16.2 $ 17.0 Unearned Premium Reserves 64.5 59.1 Tax Capitalization of Policy Acquisition Costs 44.6 44.0 Payroll and Employee Benefit Accruals 35.0 49.6 Net Operating Loss Carryforwards 3.3 5.5 Other 12.5 11.2 Total Deferred Income Tax Assets 176.1 186.4 Deferred Income Tax Liabilities: Investments 155.6 33.2 Deferred Policy Acquisition Costs 112.9 98.7 Life VIF and P&C Customer Relationships 5.3 6.0 Goodwill and Other Intangible Assets Acquired 39.3 45.2 Depreciable Assets 37.6 27.1 Other 3.6 2.4 Total Deferred Income Tax Liabilities 354.3 212.6 Net Deferred Income Tax Liabilities $ 178.2 $ 26.2 The expiration of federal net operating loss (“NOL”) carryforwards and their related deferred income tax assets at December 31, 2019 is presented below by year of expiration. DOLLARS IN MILLIONS NOL Carry-forwards Deferred Tax Asset Expiring in: 2027 11.2 2.4 2028 4.4 0.9 Total All Years $ 15.6 $ 3.3 The NOL carryforwards were acquired in connection with business acquisitions made in prior years and are subject to annual usage limitations under the Internal Revenue Code. The Company expects to fully utilize these federal NOL carryforwards. A reconciliation of the beginning and ending amount of Unrecognized Tax Benefits for the years ended December 31, 2019 , 2018 and 2017 is presented below. DOLLARS IN MILLIONS 2019 2018 2017 Liabilities for Unrecognized Tax Benefits at Beginning of Year $ 4.4 $ 8.1 $ 5.1 Additions for Tax Positions of Current Year — 0.7 3.1 Reductions for Tax Positions of Prior Years (4.4 ) (4.4 ) — Reduction for Expiration of Federal Statute of Limitations — — (0.1 ) Liabilities for Unrecognized Tax Benefits at End of Year $ — $ 4.4 $ 8.1 The statute of limitations related to Kemper and its eligible subsidiaries’ consolidated Federal income tax returns is closed for all tax years up to and including 2011. As a result of the Company filing amended federal income tax returns resulting from an election to update interest rates used to compute the tax basis of reserves on life insurance contracts issued prior to 2018, tax years 2012 and 2013 are under limited examination with respect to carryback adjustments associated with the amended returns. The statute of limitations related to tax years 2014 and 2015 has been extended to June 30, 2020. NOTE 16. INCOME TAXES (Continued) The expiration of the statute of limitations related to the various state income tax returns that Kemper and its subsidiaries file varies by state. There were no Unrecognized Tax Benefits at December 31, 2019. Unrecognized Tax Benefits at December 31, 2018 and 2017 include $3.7 million and $7.6 million , respectively, for tax positions for which the ultimate deductibility is highly certain but for which there is uncertainty about the timing of such deductibility. Because of the impact of deferred income tax accounting, other than for interest and penalties, the disallowance of the shorter deductibility period would not affect the effective income tax rate but would accelerate the payment of cash to the taxing authority to an earlier period. The Company recognizes interest and penalties, if any, related to unrecognized tax benefits in income tax expense. The liability for Unrecognized Tax Benefits included accrued interest of $0.7 million and $0.5 million at December 31, 2018 and 2017 , respectively. Net interest related to unrecognized tax benefits for the years ended December 31, 2018 and 2017 were insignificant. The components of Income Tax Expense from Continuing Operations for the years ended December 31, 2019 , 2018 and 2017 were: DOLLARS IN MILLIONS 2019 2018 2017 Current Income Tax Benefit (Expense) $ (66.4 ) $ 32.2 $ (23.1 ) Deferred Income Tax Expense (68.5 ) (46.5 ) (15.1 ) (Increase) Decrease Unrecognized Tax Benefits 4.4 3.6 (3.0 ) Income Tax Expense $ (130.5 ) $ (10.7 ) $ (41.2 ) Income taxes paid, net of income tax refunds received, were $68.1 million , $0.2 million , and $13.0 million in 2019 , 2018 , and 2017 , respectively. A reconciliation of the Statutory Federal Income Tax Expense and Rate to the Company’s Effective Income Tax Expense and Rate from Continuing Operations for the years ended December 31, 2019 , 2018 and 2017 is presented below. DOLLARS IN MILLIONS 2019 2018 2017 Amount Rate Amount Rate Amount Rate Statutory Federal Income Tax Expense $ (138.9 ) 21.0 % $ (41.8 ) 21.0 % $ (56.4 ) 35.0 % Tax-exempt Income and Dividends Received Deduction 4.3 (0.7 ) 4.8 (2.4 ) 9.8 (6.0 ) Stock-Based Compensation 4.4 (0.7 ) 1.4 (0.7 ) 0.4 (0.2 ) Nondeductible Executive Compensation (2.5 ) 0.4 (1.4 ) 0.7 — — Tax Reform — — 26.4 (13.3 ) 7.4 (4.6 ) Other, Net 2.2 (0.3 ) (0.1 ) 0.1 (2.4 ) 1.4 Effective Income Tax Benefit (Expense) from Continuing Operations $ (130.5 ) 19.7 % $ (10.7 ) 5.4 % $ (41.2 ) 25.6 % Comprehensive Income Tax (Expense) Benefit included in the Consolidated Financial Statements for the years ended December 31, 2019 , 2018 and 2017 was: DOLLARS IN MILLIONS 2019 2018 2017 Income Tax Benefit (Expense): Continuing Operations $ (130.5 ) $ (10.7 ) $ (41.2 ) Discontinued Operations — (0.6 ) (0.5 ) Unrealized Depreciation (Appreciation) on Securities (85.2 ) 49.6 (25.9 ) Foreign Currency Translation Adjustments on Investments — (0.1 ) (0.6 ) Tax Effects from Postretirement Benefit Plans 1.7 1.5 (0.6 ) Tax Effects from Cash Flow Hedge (0.1 ) (0.3 ) 2.4 Comprehensive Income Tax (Expense) Benefit $ (214.1 ) $ 39.4 $ (66.4 ) |
Pension Benefits
Pension Benefits | 12 Months Ended |
Dec. 31, 2019 | |
Retirement Benefits [Abstract] | |
Pension Benefits | PENSION BENEFITS Kemper sponsors a qualified defined benefit pension plan (the “Pension Plan”). The Pension Plan covers approximately 8,650 participants and beneficiaries, of which 1,250 are active employees. Effective January 1, 2006 the Pension Plan was closed to new hires, and effective June 30, 2016, benefit accruals were frozen for substantially all of the participants under the Pension Plan. The Pension Plan is generally non-contributory, but participation requires or required some employees to contribute 3% of pay, as defined, per year. Benefits for participants who are or were required to contribute to the Pension Plan are based on compensation during plan participation and the number of years of participation. Benefits for the vast majority of participants who are not required to contribute to the Pension Plan are based on years of service and final average pay, as defined. The Company funds the Pension Plan in accordance with the requirements of ERISA. Changes in Fair Value of Plan Assets and Changes in Projected Benefit Obligation for the Pension Plan for the years ended December 31, 2019 and 2018 is presented below. DOLLARS IN MILLIONS 2019 2018 Fair Value of Plan Assets at Beginning of Year $ 525.3 $ 579.8 Actual Return on Plan Assets 113.2 (32.1 ) Employer Contributions 55.3 5.1 Benefits Paid (29.2 ) (27.5 ) Fair Value of Plan Assets at End of Year 664.6 525.3 Projected Benefit Obligation at Beginning of Year 580.5 637.2 Interest Cost 22.3 20.3 Benefits Paid (29.2 ) (27.5 ) Actuarial (Gains) Losses 86.9 (49.5 ) Projected Benefit Obligation at End of Year 660.5 580.5 Funded Status—Plan Assets in Excess (Deficit) of Projected Benefit Obligation $ 4.1 $ (55.2 ) Unamortized Amount Reported in AOCI at End of Year $ (145.7 ) $ (144.4 ) Accumulated Benefit Obligation at End of Year $ 660.4 $ 580.3 The measurement dates of the assets and liabilities at end of year presented in the preceding table under the headings, “ 2019 ” and “ 2018 ” were December 31, 2019 and December 31, 2018 , respectively. The weighted-average discount rate and rate of increase in future compensation levels used to estimate the components of the Projected Benefit Obligation for the Pension Plan at December 31, 2019 and 2018 were: 2019 2018 Discount Rate 3.21 % 4.28 % Rate of Increase in Future Compensation Levels 3.40 3.40 Asset allocations for the Pension Plan at December 31, 2019 and 2018 by asset category were: ASSET CATEGORY 2019 2018 Cash and Short-term Investments 2 % 1 % Corporate Bonds and Notes 40 41 Common and Preferred Stocks 35 37 Bond Exchange Traded Funds 14 6 Other Assets 9 15 Total 100 % 100 % The investment objective of the Pension Plan is to produce current income and long-term capital growth through a combination of equity and fixed income investments which, together with appropriate employer contributions and any required employee contributions, is adequate to provide for the payment of the benefit obligations of the Pension Plan. The assets of the Pension Plan may be invested in fixed income and equity investments or any other investment vehicle or financial instrument deemed NOTE 17. PENSION BENEFITS (Continued) appropriate. Fixed income investments may include cash and short-term instruments, U.S. Government securities, corporate bonds, mortgages and other fixed income investments. Equity investments may include various types of stock, such as large-cap, mid-cap and small-cap stocks, and may also include investments in investment companies, collective investment funds and Kemper common stock (subject to Section 407 and other requirements of ERISA). The Pension Plan has not invested in Kemper common stock. The trust investment committee for the Pension Plan, along with its third party fiduciary advisor, periodically reviews the performance of the Pension Plan’s investments and asset allocation. Several external investment managers, one of which is Fayez Sarofim & Co. (see Note 24 , “ Related Parties ,” to the Consolidated Financial Statements), manage the equity investments of the trust for the Pension Plan. Each manager is allowed to exercise investment discretion, subject to limitations, if any, established by the trust investment committee for the Pension Plan. All other investment decisions are made by the Company, subject to general guidelines as set by the trust investment committee for the Pension Plan. The Company determines its Expected Long Term Rate of Return on Plan Assets based primarily on the Company’s expectations of future returns, with consideration to historical returns, for the Pension Plan’s investments, based on target allocations of the Pension Plan’s investments. The fair values of pension plan assets are estimated using the same methodologies and inputs as those used to determine the fair values for the respective asset category of the Company. These methodologies and inputs are disclosed in Note 22, “Fair Value Measurements,” to the Consolidated Financial Statements. Fair value measurements for the Pension Plan’s assets at December 31, 2019 are summarized below. DOLLARS IN MILLIONS Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Measured at Net Asset Value Fair Value Fixed Maturities: U.S. Government and Government Agencies and Authorities $ 158.4 $ — $ — — $ 158.4 States and Political Subdivisions — 0.1 — — 0.1 Corporate Bonds and Notes — 107.3 — — 107.3 Equity Securities: Common Stocks: Other Industries 140.0 21.5 — — 161.5 Other Equity Interests: Collective Investment Funds — — — 71.8 71.8 Bond Exchange Traded Funds 92.8 — — — 92.8 Limited Liability Companies and Limited Partnerships — — — 63.7 63.7 Short-term Investments 10.0 — — — 10.0 Receivables and Other (1.0 ) — — — (1.0 ) Total $ 400.2 $ 128.9 $ — $ 135.5 $ 664.6 NOTE 17. PENSION BENEFITS (Continued) Fair value measurements for the Pension Plan’s assets at December 31, 2018 are summarized below. DOLLARS IN MILLIONS Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Measured at Net Asset Value Fair Value Fixed Maturities: U.S. Government and Government Agencies and Authorities $ 110.9 $ — $ — — $ 110.9 States and Political Subdivisions — 2.1 — — 2.1 Corporate Bonds and Notes — 103.4 — — 103.4 Equity Securities: Preferred Stocks: Finance, Insurance and Real Estate — — — — — Common Stocks: Manufacturing — — — — — Other Industries 106.0 17.4 — — 123.4 Other Equity Interests: Collective Investment Funds — — — 68.6 68.6 Bond Exchange Traded Funds 34.1 — — — 34.1 Limited Liability Companies and Limited Partnerships — — — 77.1 77.1 Short-term Investments 4.4 — — — 4.4 Receivables and Other 1.0 — 0.3 — 1.3 Total $ 256.4 $ 122.9 $ 0.3 $ 145.7 $ 525.3 Additional information pertaining to the changes in the fair value of the Pension Plan’s assets classified as Level 3 in the two preceding tables for the years ended December 31, 2019 and 2018 is presented below. DOLLARS IN MILLIONS 2019 2018 Balance at Beginning of Year $ 0.3 $ 0.3 Purchases, Sales and Settlements, Net (0.3 ) — Balance at End of Year $ — $ 0.3 The components of Comprehensive Pension Expense (Income) for the Pension Plan for the years ended December 31, 2019 , 2018 and 2017 were: DOLLARS IN MILLIONS 2019 2018 2017 Service Cost Earned During the Year $ — $ — $ — Interest Cost on Projected Benefit Obligation 22.3 20.3 20.6 Expected Return on Plan Assets (30.6 ) (28.9 ) (30.9 ) Amortization of Actuarial Loss 2.9 4.3 2.6 Pension Income Recognized in Consolidated Statements of Income (5.4 ) (4.3 ) (7.7 ) Unrecognized Pension Gain (Loss) Arising During the Year 4.2 11.5 (4.9 ) Amortization of Accumulated Unrecognized Pension Loss (2.9 ) (4.3 ) (2.6 ) Comprehensive Pension Expense (Income) $ (4.1 ) $ 2.9 $ (15.2 ) NOTE 17. PENSION BENEFITS (Continued) The actuarial loss included in AOCI at December 31, 2019 is being amortized over approximately 22 years , the remaining average estimated life expectancy of participants. The Company estimates that Pension Income for the Pension Plan for the year ended December 31, 2020 will include expense of $5.9 million resulting from the amortization of the related accumulated actuarial loss included in AOCI at December 31, 2019 . The weighted-average discount rate, service cost discount rate, interest cost discount rate, rate of increase in future compensation levels and expected long-term rate of return on plan assets used to develop the components of Pension Expense for the Pension Plan for the years ended December 31, 2019 , 2018 and 2017 were: 2019 2018 2017 Weighted-average Discount Rate 4.28 % 3.63 % 4.19 % Service Cost Discount Rate 4.26 3.61 4.15 Interest Cost Discount Rate 3.91 3.26 3.52 Rate of Increase in Future Compensation Levels 3.40 3.40 2.56 Expected Long Term Rate of Return on Plan Assets 5.70 5.35 5.80 On August 22, 2019, the Company made a voluntary cash contribution of $55.3 million to the Pension Plan. On July 13, 2018, the Company made a voluntary cash contribution of $5.1 million to the Pension Plan. The Company did not contribute to the Pension Plan in 2017. The Company does not expect that it will be required to contribute to the Pension Plan in 2020 , but could make a voluntary contribution pursuant to the maximum funding limits under ERISA. The following benefit payments (net of participant contributions), which consider expected future service of certain participants that remain eligible for a benefit accrual, as appropriate, are expected to be paid from the Pension Plan: DOLLARS IN MILLIONS Years Ending December 31, 2020 2021 2022 2023 2024 2025-2029 Estimated Pension Benefit Payments $ 31.4 $ 32.1 $ 33.2 $ 34.0 $ 34.7 $ 179.1 The Company also sponsors a non-qualified supplemental defined benefit pension plan (the “ Supplemental Plan”). Benefit accruals for all par ticipants in the Supplemental Plan were frozen effective June 30, 2016. The unfunded liability related to the Supplemental Plan was $28.9 million and $24.2 million at December 31, 2019 and 2018 , respectively. Pension expense for the Supplemental Plan was $1.0 million , $0.8 million , and $0.8 million for the years ended December 31, 2019 , 2018 and 2017 , respectively. An actuarial loss of $5.6 million before taxes, an actuarial gain of $1.3 million before taxes and an actuarial loss of $1.6 million before taxes are included in Other Comprehensive Income (Loss) for the years ended December 31, 2019 , 2018 and 2017 , respectively. The Company also sponsors several defined contribution benefit plans covering most of its employees. The Company made contributions to those plans of $26.0 million , $15.1 million and $10.6 million in 2019 , 2018 and 2017 |
Postretirement Benefits Other T
Postretirement Benefits Other Than Pensions | 12 Months Ended |
Dec. 31, 2019 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Postretirement Benefits Other Than Pensions | PENSION BENEFITS Kemper sponsors a qualified defined benefit pension plan (the “Pension Plan”). The Pension Plan covers approximately 8,650 participants and beneficiaries, of which 1,250 are active employees. Effective January 1, 2006 the Pension Plan was closed to new hires, and effective June 30, 2016, benefit accruals were frozen for substantially all of the participants under the Pension Plan. The Pension Plan is generally non-contributory, but participation requires or required some employees to contribute 3% of pay, as defined, per year. Benefits for participants who are or were required to contribute to the Pension Plan are based on compensation during plan participation and the number of years of participation. Benefits for the vast majority of participants who are not required to contribute to the Pension Plan are based on years of service and final average pay, as defined. The Company funds the Pension Plan in accordance with the requirements of ERISA. Changes in Fair Value of Plan Assets and Changes in Projected Benefit Obligation for the Pension Plan for the years ended December 31, 2019 and 2018 is presented below. DOLLARS IN MILLIONS 2019 2018 Fair Value of Plan Assets at Beginning of Year $ 525.3 $ 579.8 Actual Return on Plan Assets 113.2 (32.1 ) Employer Contributions 55.3 5.1 Benefits Paid (29.2 ) (27.5 ) Fair Value of Plan Assets at End of Year 664.6 525.3 Projected Benefit Obligation at Beginning of Year 580.5 637.2 Interest Cost 22.3 20.3 Benefits Paid (29.2 ) (27.5 ) Actuarial (Gains) Losses 86.9 (49.5 ) Projected Benefit Obligation at End of Year 660.5 580.5 Funded Status—Plan Assets in Excess (Deficit) of Projected Benefit Obligation $ 4.1 $ (55.2 ) Unamortized Amount Reported in AOCI at End of Year $ (145.7 ) $ (144.4 ) Accumulated Benefit Obligation at End of Year $ 660.4 $ 580.3 The measurement dates of the assets and liabilities at end of year presented in the preceding table under the headings, “ 2019 ” and “ 2018 ” were December 31, 2019 and December 31, 2018 , respectively. The weighted-average discount rate and rate of increase in future compensation levels used to estimate the components of the Projected Benefit Obligation for the Pension Plan at December 31, 2019 and 2018 were: 2019 2018 Discount Rate 3.21 % 4.28 % Rate of Increase in Future Compensation Levels 3.40 3.40 Asset allocations for the Pension Plan at December 31, 2019 and 2018 by asset category were: ASSET CATEGORY 2019 2018 Cash and Short-term Investments 2 % 1 % Corporate Bonds and Notes 40 41 Common and Preferred Stocks 35 37 Bond Exchange Traded Funds 14 6 Other Assets 9 15 Total 100 % 100 % The investment objective of the Pension Plan is to produce current income and long-term capital growth through a combination of equity and fixed income investments which, together with appropriate employer contributions and any required employee contributions, is adequate to provide for the payment of the benefit obligations of the Pension Plan. The assets of the Pension Plan may be invested in fixed income and equity investments or any other investment vehicle or financial instrument deemed NOTE 17. PENSION BENEFITS (Continued) appropriate. Fixed income investments may include cash and short-term instruments, U.S. Government securities, corporate bonds, mortgages and other fixed income investments. Equity investments may include various types of stock, such as large-cap, mid-cap and small-cap stocks, and may also include investments in investment companies, collective investment funds and Kemper common stock (subject to Section 407 and other requirements of ERISA). The Pension Plan has not invested in Kemper common stock. The trust investment committee for the Pension Plan, along with its third party fiduciary advisor, periodically reviews the performance of the Pension Plan’s investments and asset allocation. Several external investment managers, one of which is Fayez Sarofim & Co. (see Note 24 , “ Related Parties ,” to the Consolidated Financial Statements), manage the equity investments of the trust for the Pension Plan. Each manager is allowed to exercise investment discretion, subject to limitations, if any, established by the trust investment committee for the Pension Plan. All other investment decisions are made by the Company, subject to general guidelines as set by the trust investment committee for the Pension Plan. The Company determines its Expected Long Term Rate of Return on Plan Assets based primarily on the Company’s expectations of future returns, with consideration to historical returns, for the Pension Plan’s investments, based on target allocations of the Pension Plan’s investments. The fair values of pension plan assets are estimated using the same methodologies and inputs as those used to determine the fair values for the respective asset category of the Company. These methodologies and inputs are disclosed in Note 22, “Fair Value Measurements,” to the Consolidated Financial Statements. Fair value measurements for the Pension Plan’s assets at December 31, 2019 are summarized below. DOLLARS IN MILLIONS Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Measured at Net Asset Value Fair Value Fixed Maturities: U.S. Government and Government Agencies and Authorities $ 158.4 $ — $ — — $ 158.4 States and Political Subdivisions — 0.1 — — 0.1 Corporate Bonds and Notes — 107.3 — — 107.3 Equity Securities: Common Stocks: Other Industries 140.0 21.5 — — 161.5 Other Equity Interests: Collective Investment Funds — — — 71.8 71.8 Bond Exchange Traded Funds 92.8 — — — 92.8 Limited Liability Companies and Limited Partnerships — — — 63.7 63.7 Short-term Investments 10.0 — — — 10.0 Receivables and Other (1.0 ) — — — (1.0 ) Total $ 400.2 $ 128.9 $ — $ 135.5 $ 664.6 NOTE 17. PENSION BENEFITS (Continued) Fair value measurements for the Pension Plan’s assets at December 31, 2018 are summarized below. DOLLARS IN MILLIONS Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Measured at Net Asset Value Fair Value Fixed Maturities: U.S. Government and Government Agencies and Authorities $ 110.9 $ — $ — — $ 110.9 States and Political Subdivisions — 2.1 — — 2.1 Corporate Bonds and Notes — 103.4 — — 103.4 Equity Securities: Preferred Stocks: Finance, Insurance and Real Estate — — — — — Common Stocks: Manufacturing — — — — — Other Industries 106.0 17.4 — — 123.4 Other Equity Interests: Collective Investment Funds — — — 68.6 68.6 Bond Exchange Traded Funds 34.1 — — — 34.1 Limited Liability Companies and Limited Partnerships — — — 77.1 77.1 Short-term Investments 4.4 — — — 4.4 Receivables and Other 1.0 — 0.3 — 1.3 Total $ 256.4 $ 122.9 $ 0.3 $ 145.7 $ 525.3 Additional information pertaining to the changes in the fair value of the Pension Plan’s assets classified as Level 3 in the two preceding tables for the years ended December 31, 2019 and 2018 is presented below. DOLLARS IN MILLIONS 2019 2018 Balance at Beginning of Year $ 0.3 $ 0.3 Purchases, Sales and Settlements, Net (0.3 ) — Balance at End of Year $ — $ 0.3 The components of Comprehensive Pension Expense (Income) for the Pension Plan for the years ended December 31, 2019 , 2018 and 2017 were: DOLLARS IN MILLIONS 2019 2018 2017 Service Cost Earned During the Year $ — $ — $ — Interest Cost on Projected Benefit Obligation 22.3 20.3 20.6 Expected Return on Plan Assets (30.6 ) (28.9 ) (30.9 ) Amortization of Actuarial Loss 2.9 4.3 2.6 Pension Income Recognized in Consolidated Statements of Income (5.4 ) (4.3 ) (7.7 ) Unrecognized Pension Gain (Loss) Arising During the Year 4.2 11.5 (4.9 ) Amortization of Accumulated Unrecognized Pension Loss (2.9 ) (4.3 ) (2.6 ) Comprehensive Pension Expense (Income) $ (4.1 ) $ 2.9 $ (15.2 ) NOTE 17. PENSION BENEFITS (Continued) The actuarial loss included in AOCI at December 31, 2019 is being amortized over approximately 22 years , the remaining average estimated life expectancy of participants. The Company estimates that Pension Income for the Pension Plan for the year ended December 31, 2020 will include expense of $5.9 million resulting from the amortization of the related accumulated actuarial loss included in AOCI at December 31, 2019 . The weighted-average discount rate, service cost discount rate, interest cost discount rate, rate of increase in future compensation levels and expected long-term rate of return on plan assets used to develop the components of Pension Expense for the Pension Plan for the years ended December 31, 2019 , 2018 and 2017 were: 2019 2018 2017 Weighted-average Discount Rate 4.28 % 3.63 % 4.19 % Service Cost Discount Rate 4.26 3.61 4.15 Interest Cost Discount Rate 3.91 3.26 3.52 Rate of Increase in Future Compensation Levels 3.40 3.40 2.56 Expected Long Term Rate of Return on Plan Assets 5.70 5.35 5.80 On August 22, 2019, the Company made a voluntary cash contribution of $55.3 million to the Pension Plan. On July 13, 2018, the Company made a voluntary cash contribution of $5.1 million to the Pension Plan. The Company did not contribute to the Pension Plan in 2017. The Company does not expect that it will be required to contribute to the Pension Plan in 2020 , but could make a voluntary contribution pursuant to the maximum funding limits under ERISA. The following benefit payments (net of participant contributions), which consider expected future service of certain participants that remain eligible for a benefit accrual, as appropriate, are expected to be paid from the Pension Plan: DOLLARS IN MILLIONS Years Ending December 31, 2020 2021 2022 2023 2024 2025-2029 Estimated Pension Benefit Payments $ 31.4 $ 32.1 $ 33.2 $ 34.0 $ 34.7 $ 179.1 The Company also sponsors a non-qualified supplemental defined benefit pension plan (the “ Supplemental Plan”). Benefit accruals for all par ticipants in the Supplemental Plan were frozen effective June 30, 2016. The unfunded liability related to the Supplemental Plan was $28.9 million and $24.2 million at December 31, 2019 and 2018 , respectively. Pension expense for the Supplemental Plan was $1.0 million , $0.8 million , and $0.8 million for the years ended December 31, 2019 , 2018 and 2017 , respectively. An actuarial loss of $5.6 million before taxes, an actuarial gain of $1.3 million before taxes and an actuarial loss of $1.6 million before taxes are included in Other Comprehensive Income (Loss) for the years ended December 31, 2019 , 2018 and 2017 , respectively. The Company also sponsors several defined contribution benefit plans covering most of its employees. The Company made contributions to those plans of $26.0 million , $15.1 million and $10.6 million in 2019 , 2018 and 2017 |
Other Postretirement Benefit Plan, Defined Benefit | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Postretirement Benefits Other Than Pensions | POSTRETIREMENT BENEFITS OTHER THAN PENSIONS Kemper and Infinity sponsor other than pension postretirement employee benefit plans (“OPEB”) that together provide medical, dental and/or life insurance benefits to approximately 650 retired and 525 active employees. Kemper has historically self-insured the benefits under the Kemper OPEB Plan. The Kemper medical plan generally provides for a limited number of years of medical insurance benefits at retirement based on the participant’s attained age at retirement and number of years of service until specified dates and generally has required participant contributions, with most contributions adjusted annually. On December 30, 2016, Kemper amended the Kemper OPEB Plan and, effective December 31, 2016, will no longer offer coverage to post-65 Medicare-eligible retirees and Medicare-eligible spouses under the self-insured portion of its coverage. Rather, beginning on January 1, 2017, the Kemper OPEB Plan offers access to a private, third-party Medicare exchange and provides varying levels of a Company-determined subsidy via health reimbursement accounts to certain Medicare-eligible retirees and spouses in order to help fund a portion of the participants’ cost. Further, the amendment eliminates the requirement for such participants to contribute to the Kemper OPEB Plan. In conjunction with the amendment, NOTE 18. POSTRETIREMENT BENEFITS OTHER THAN PENSIONS (Continued) the Company recorded a pre-tax reduction to its Accumulated Postretirement Benefit Obligation of $11.0 million through Other Comprehensive Income. This prior service credit is being amortized into income over the remaining average life of the Kemper OPEB Plan’s participants. Changes in Fair Value of Plans’ Assets and Changes in Accumulated Postretirement Benefit Obligation for the years ended December 31, 2019 and 2018 were: DOLLARS IN MILLIONS 2019 2018 Fair Value of Plans’ Assets at Beginning of Year $ — $ — Employer Contributions 1.1 1.1 Plan Participants’ Contributions 0.3 0.3 Benefits Paid (1.4 ) (1.4 ) Fair Value of Plan Assets at End of Year — — Accumulated Postretirement Benefit Obligation at Beginning of Year 15.0 14.4 Obligation from Acquisition of Infinity — 3.9 Service Cost 0.2 0.2 Interest Cost 0.4 0.4 Plan Participants’ Contributions 0.3 0.3 Benefits Paid (1.4 ) (1.4 ) Medicare Part D Subsidy Received — 0.2 Actuarial Gain (1.7 ) (3.0 ) Accumulated Postretirement Benefit Obligation at End of Year 12.8 15.0 Funded Status—Accumulated Postretirement Benefit Obligation in Excess of Plans’ Assets $ (12.8 ) $ (15.0 ) Unamortized Actuarial Gain Reported in AOCI at End of Year $ 23.8 $ 24.9 The measurement dates of the assets and liabilities at end of year in the preceding table under the headings “ 2019 ” and “ 2018 ” were December 31, 2019 and December 31, 2018 , respectively. The weighted-average discount rate and rate of increase in future compensation levels used to develop the components of the Accumulated Postretirement Benefit Obligation at December 31, 2019 and 2018 were: 2019 2018 Discount Rate 2.91 % 4.02 % Rate of Increase in Future Compensation Levels 2.20 2.20 The assumed health care cost trend rate used in measuring the Accumulated Postretirement Benefit Obligation at December 31, 2019 was 7.50% for 2020 , gradually declining to 4.8% in the year 2025 and remaining at that level thereafter for medical benefits and 10.00% for 2020 , gradually declining to 4.8% in the year 2026 and remaining at that level thereafter for prescription drug benefits. The assumed health care cost trend rate used in measuring the Accumulated Postretirement Benefit Obligation at December 31, 2018 was 7.5% for 2019 , gradually declining to 4.8% in the year 2025 and remaining at that level thereafter for medical benefits and 10.0% for 2019 , gradually declining to 4.8% in the year 2026 and remaining at that level thereafter for prescription drug benefits. A one-percentage point increase in the assumed health care cost trend rate for each year would have increased the Accumulated Postretirement Benefit Obligation at December 31, 2019 by $0.6 million and 2019 OPEB expense by an insignificant amount. A one-percentage point increase in the assumed health care cost trend rate for each year would have increased the Accumulated Postretirement Benefit Obligation at December 31, 2018 by $0.8 million and 2018 OPEB expense by an insignificant amount. NOTE 18. POSTRETIREMENT BENEFITS OTHER THAN PENSIONS (Continued) The components of Comprehensive OPEB Expense (Income) for the years ended December 31, 2019 , 2018 and 2017 were: DOLLARS IN MILLIONS 2019 2018 2017 Service Cost Earned During the Year $ 0.2 $ 0.2 $ 0.1 Interest Cost on Accumulated Postretirement Benefit Obligation 0.4 0.4 0.4 Amortization of Prior Service Credit (1.3 ) (1.3 ) — Amortization of Accumulated Unrecognized OPEB Gain (2.4 ) (1.8 ) (1.8 ) OPEB Income Recognized in Consolidated Statements of Income (3.1 ) (2.5 ) (1.3 ) Unrecognized OPEB Gain Arising During the Year (1.7 ) (3.0 ) (0.5 ) Prior Service Credit Arising During the Year from Plan Amendments — — (1.3 ) Amortization of Prior Service Credit 1.3 1.3 — Amortization of Accumulated Unrecognized OPEB Gain 2.4 1.8 1.8 Comprehensive OPEB Income $ (1.1 ) $ (2.4 ) $ (1.3 ) The Company estimates that OPEB Expense for the year ended December 31, 2020 will include income of $3.3 million resulting from the amortization of the related accumulated actuarial gain and prior service credit included in AOCI at December 31, 2019 . The weighted-average discount rate and rate of increase in future compensation levels used to develop OPEB Expense for the years ended December 31, 2019 , 2018 and 2017 were: 2019 2018 2017 Weighted-average Discount Rate 4.08 % 3.36 % 3.61 % Service Cost Discount Rate 4.16 3.52 3.79 Interest Cost Discount Rate 3.69 2.96 2.92 Rate of Increase in Future Compensation Levels 2.20 2.20 2.60 The Company expects to contribute $1.3 million , net of the expected Medicare Part D subsidy, to its OPEB Plan to fund benefit payments in 2020 . The following benefit payments (net of participant contributions), which consider expected future service, as appropriate, are expected to be paid: DOLLARS IN MILLIONS Years Ending December 31, 2020 2021 2022 2023 2024 2025-2029 Estimated Benefit Payments: Excluding Medicare Part D Subsidy $ 1.3 $ 1.3 $ 1.3 $ 1.2 $ 1.2 $ 4.5 Expected Medicare Part D Subsidy — — — — — — Net Estimated Benefit Payments $ 1.3 $ 1.3 $ 1.3 $ 1.2 $ 1.2 $ 4.5 |
Business Segments
Business Segments | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Business Segments | 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 three operating segments: Specialty Property & Casualty Insurance, Preferred Property & Casualty Insurance and Life & Health Insurance. The Specialty Property & Casualty Insurance segment’s principal products are specialty automobile insurance and commercial automobile insurance. The Preferred Property & Casualty Insurance segment’s principal products are preferred automobile insurance, homeowners insurance, and other personal insurance. These products are distributed primarily through independent agents and brokers.The Life & Health Insurance segment’s principal products are individual life, accident, health and property insurance. These products are distributed by career agents employed by the Company and independent agents and brokers. The Company’s earned premiums are derived in the United States. The accounting policies of the segments are the same as those described in Note 2 , “ Summary of Accounting Policies and Accounting Changes ,” to the Consolidated Financial Statements. Capital expenditures for long-lived assets by operating segment are immaterial. NOTE 19. BUSINESS SEGMENTS (Continued) It is the Company’s management practice to allocate certain corporate expenses, primarily compensation costs for corporate employees and related facility costs, included in Interest and Other Expenses in the Consolidated Statements of Income to its insurance operations. The amount of such allocated corporate expenses was $103.9 million , $68.0 million and $50.8 million for the years ended December 31, 2019 , 2018 and 2017 , respectively. The Company does not allocate Income from Change in Fair Value of Equity and Convertible Securities, Net Realized Gains on Sales of Investments, Net Impairment Losses Recognized in Earnings, Acquisition Related Transaction, Integration and Other Costs, Loss from Early Extinguishment of Debt, interest expense on debt or postretirement benefit plans, and actuarial gains and losses on its postretirement benefit plans to its operating segments. Additionally, the Company did not allocate the 2018 and 2017 impacts of the Tax Act or the gains recognized in 2019 and 2018 on the partial satisfaction of a final judgment against Computer Sciences Corporation (“CSC”) to its operating segments. Segment Assets at December 31, 2019 and 2018 were: DOLLARS IN MILLIONS 2019 2018 Specialty Property & Casualty Insurance $ 4,435.2 $ 3,541.0 Preferred Property & Casualty Insurance 1,549.8 1,567.7 Life & Health Insurance 5,847.9 5,117.2 Corporate and Other, Net 1,156.2 1,319.0 Total Assets $ 12,989.1 $ 11,544.9 Earned Premiums by product line for the years ended December 31, 2019 , 2018 and 2017 were: DOLLARS IN MILLIONS 2019 2018 2017 Specialty Property & Casualty Insurance: Specialty Automobile $ 2,825.6 $ 1,889.5 $ 954.3 Commercial Automobile 252.8 137.9 51.4 Preferred Property & Casualty Insurance: Preferred Automobile 470.2 440.2 422.8 Homeowners 241.3 250.1 264.8 Other Personal Lines 38.8 40.4 42.7 Life & Health Insurance: Life 384.6 378.4 379.7 Accident & Health 190.9 177.5 161.7 Property 68.2 70.4 72.6 Total Earned Premiums $ 4,472.4 $ 3,384.4 $ 2,350.0 NOTE 19. BUSINESS SEGMENTS (Continued) Segment Revenues, including a reconciliation to Total Revenues, for the years ended December 31, 2019 , 2018 and 2017 were: DOLLARS IN MILLIONS 2019 2018 2017 Segment Revenues: Specialty Property & Casualty Insurance: Earned Premiums $ 3,078.4 $ 2,027.4 $ 1,005.7 Net Investment Income 107.5 63.4 39.2 Other Income 7.0 2.4 1.1 Total Specialty Property & Casualty Insurance 3,192.9 2,093.2 1,046.0 Preferred Property & Casualty Insurance: Earned Premiums 750.3 730.7 730.3 Net Investment Income 44.1 61.8 58.9 Total Preferred Property & Casualty Insurance 794.4 792.5 789.2 Life & Health Insurance: Earned Premiums 643.7 626.3 614.0 Net Investment Income 206.4 210.9 223.2 Other Income 8.5 4.0 2.6 Total Life & Health Insurance 858.6 841.2 839.8 Total Segment Revenues 4,845.9 3,726.9 2,675.0 Income (Loss) from Change in Fair Value of Equity and Convertible Securities 138.9 (64.3 ) — Net Realized Gains on the Sales of Investments 41.9 26.4 56.5 Net Impairment Losses Recognized in Earnings (13.8 ) (4.5 ) (14.3 ) Other 26.3 40.6 6.2 Total Revenues $ 5,039.2 $ 3,725.1 $ 2,723.4 Segment Operating Profit, including a reconciliation to Income from Continuing Operations before Income Taxes, for the years ended December 31, 2019 , 2018 and 2017 was: DOLLARS IN MILLIONS 2019 2018 2017 Segment Operating Profit (Loss): Specialty Property & Casualty Insurance $ 355.9 $ 145.6 $ 80.5 Preferred Property & Casualty Insurance 52.3 28.6 (78.1 ) Life & Health Insurance 121.9 115.9 140.2 Total Segment Operating Profit 530.1 290.1 142.6 Corporate and Other Operating Profit (Loss) From: Partial Satisfaction of Judgment 20.1 35.7 — Other (31.4 ) (39.6 ) (23.7 ) Corporate and Other Operating Profit (Loss) (11.3 ) (3.9 ) (23.7 ) Adjusted Consolidated Operating Profit (Loss) 518.8 286.2 118.9 Income (Loss) from Change in Fair Value of Equity and Convertible Securities 138.9 (64.3 ) — Net Realized Gains on Sales of Investments 41.9 26.4 56.5 Net Impairment Gains (Losses) Recognized in Earnings (13.8 ) (4.5 ) (14.3 ) Acquisition Related Transaction, Integration and Other Costs (18.4 ) (44.7 ) — Loss from Early Extinguishment of Debt (5.8 ) — — Income from Continuing Operations before Income Taxes $ 661.6 $ 199.1 $ 161.1 NOTE 19. BUSINESS SEGMENTS (Continued) Segment Net Operating Income, including a reconciliation to Income from Continuing Operations, for the years ended December 31, 2019 , 2018 and 2017 was: DOLLARS IN MILLIONS 2019 2018 2017 Segment Net Operating Income (Loss): Specialty Property & Casualty Insurance $ 283.1 $ 115.8 $ 56.3 Preferred Property & Casualty Insurance 41.9 25.7 (45.4 ) Life & Health Insurance 98.7 91.5 91.9 Total Segment Net Operating Income (Loss) 423.7 233.0 102.8 Corporate and Other Net Operating Income (Loss) From: Effects of Tax Law Changes — 26.4 7.4 Partial Satisfaction of Judgment 15.9 28.2 — Other (21.3 ) (29.2 ) (17.7 ) Total Corporate and Other Net Operating Income (Loss) (5.4 ) 25.4 (10.3 ) Adjusted Consolidated Net Operating Income 418.3 258.4 92.5 Net Income (Loss) From: Change in Fair Value of Equity and Convertible Securities 109.7 (50.8 ) — Net Realized Gains on Sales of Investments 33.1 20.9 36.7 Net Impairment Losses Recognized in Earnings (10.9 ) (3.6 ) (9.3 ) Acquisition Related Transaction, Integration and Other Costs (14.5 ) (36.5 ) — Loss from Early Extinguishment of Debt (4.6 ) — — Income from Continuing Operations $ 531.1 $ 188.4 $ 119.9 Amortization of Deferred Policy Acquisition Costs by Operating Segment for the years ended December 31, 2019 , 2018 and 2017 was: DOLLARS IN MILLIONS 2019 2018 2017 Specialty Property & Casualty Insurance $ 224.9 $ 202.0 $ 150.2 Preferred Property & Casualty Insurance 120.1 117.2 114.6 Life & Health Insurance 63.3 57.9 53.5 Total Amortization $ 408.3 $ 377.1 $ 318.3 |
Catastrophe Reinsurance
Catastrophe Reinsurance | 12 Months Ended |
Dec. 31, 2019 | |
Reinsurance Disclosures [Abstract] | |
Catastrophe Reinsurance | CATASTROPHE REINSURANCE Catastrophes and natural disasters are inherent risks of the property and casualty insurance business. These catastrophic events and natural disasters include, without limitation, hurricanes, tornadoes, earthquakes, hailstorms, wildfires, high winds and winter storms. Such events result in insured losses that are, and will continue to be, a material factor in the results of operations and financial position of the Company’s property and casualty insurance companies. Further, because the level of these insured losses occurring in any one year cannot be accurately predicted, these losses may contribute to material year-to-year fluctuations in the results of operations and financial position of these companies. Specific types of catastrophic events are more likely to occur at certain times within the year than others. This factor adds an element of seasonality to property and casualty insurance claims. The Company has adopted the industry-wide catastrophe classifications of storms and other events promulgated by the Insurance Services Office (“ISO”) to track and report losses related to catastrophes. ISO classifies a disaster as a catastrophe when the event causes $25.0 million or more in direct insured losses to property and affects a significant number of policyholders and insurers. ISO-classified catastrophes are assigned a unique serial number recognized throughout the insurance industry. The discussions that follow utilize ISO’s definition of catastrophes. The Company 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 certain regions, and reinsurance. To limit its exposures to catastrophic events, the Company maintains a catastrophe reinsurance program for the property and casualty insurance companies. Coverage for the catastrophe reinsurance program is provided in various layers through multiple excess of loss reinsurance contracts and in 2019 and 2018 an annual aggregate excess property catastrophe reinsurance contract. NOTE 20. CATASTROPHE REINSURANCE (Continued) Coverage on individual catastrophes provided under the excess of loss reinsurance contracts effective January 1, 2019 to December 31, 2019 is provided in various layers as presented below. DOLLARS IN MILLIONS Catastrophe Losses and LAE Percentage of Coverage In Excess of Up to Retained $ — $ 50.0 — % 1st Layer of Coverage 50.0 150.0 95.0 2nd Layer of Coverage 150.0 250.0 95.0 3rd Layer of Coverage 250.0 275.0 95.0 Coverage on individual catastrophes provided under the excess of loss reinsurance contracts effective January 1, 2018 to December 31, 2018 is provided in various layers as presented below. DOLLARS IN MILLIONS Catastrophe Losses and LAE Percentage of Coverage In Excess of Up to Retained $ — $ 50.0 — % 1st Layer of Coverage 50.0 150.0 95.0 2nd Layer of Coverage (Tranche A) 150.0 250.0 63.3 2nd Layer of Coverage (Tranche B) 150.0 350.0 31.7 Coverage on individual catastrophes provided under the excess of loss reinsurance contracts effective January 1, 2017 to December 31, 2017 is provided in various layers as presented below. DOLLARS IN MILLIONS Catastrophe Losses and LAE Percentage of Coverage In Excess of Up to Retained $ — $ 50.0 — % 1st Layer of Coverage 50.0 150.0 95.0 2nd Layer of Coverage (Tranche A) 150.0 250.0 31.7 2nd Layer of Coverage (Tranche B) 150.0 350.0 63.3 In the event that the incurred catastrophe losses and LAE covered by the catastrophe reinsurance programs presented in the three preceding tables exceed the retention for that particular layer, each of the programs allow for one reinstatement of such coverage. In such an instance, the Company is required to pay a reinstatement premium to the reinsurers to reinstate the full amount of reinsurance available under such layer. Coverage provided under the 2019 aggregate property catastrophe reinsurance contract is summarized below. Aggregate Catastrophe DOLLARS IN MILLIONS In Excess of Up to Retained $ — $ 60.0 Coverage 60.0 110.0 Coverage provided under the 2018 aggregate property catastrophe reinsurance contract is summarized below. Aggregate Catastrophe DOLLARS IN MILLIONS In Excess of Up to Retained $ — $ 60.0 Coverage 60.0 110.0 NOTE 20. CATASTROPHE REINSURANCE (Continued) The catastrophe reinsurance in 2019 , 2018 and 2017 for the property and casualty insurance companies also included reinsurance coverage from the Florida Hurricane Catastrophe Fund (the “FHCF”) for hurricane losses in Florida at retentions lower than those described above. The Life & Health Insurance segment also purchases reinsurance from the FHCF for hurricane losses in Florida. Except for the coverage provided by the FHCF, the Life & Health Insurance segment does not carry any other catastrophe reinsurance coverage in 2019 , 2018 and 2017 . Reinsurance premiums for the Company’s catastrophe reinsurance programs and the FHCF Program reduced earned premiums for the years ended December 31, 2019 , 2018 and 2017 by the following: DOLLARS IN MILLIONS 2019 2018 2017 Specialty Property & Casualty Insurance $ 0.2 $ 2.6 $ 0.1 Preferred Property & Casualty Insurance 20.2 17.8 10.8 Life & Health Insurance 0.1 0.1 0.1 Total Ceded Catastrophe Reinsurance Premiums $ 20.5 $ 20.5 $ 11.0 In 2019 , 2018 and 2017 the Company paid $ 0.0 million , $0.4 million and $0.8 million respectively, in reinstatement premium. In 2019 , the Company received a $0.9 million refund of reinstatement premiums related to the 2017 and 2018 wildfires. Catastrophe losses and LAE (including reserve development), net of reinsurance recoveries, for the years ended December 31, 2019 , 2018 and 2017 by business segment are presented below. DOLLARS IN MILLIONS 2019 2018 2017 Specialty Property & Casualty Insurance $ 11.6 $ 4.4 $ 5.2 Preferred Property & Casualty Insurance 44.6 79.1 168.8 Life & Health Insurance 3.9 4.1 6.4 Total Catastrophe Losses and LAE $ 60.1 $ 87.6 $ 180.4 In 2019 , 2018 and 2017 Kemper’s property and casualty subsidiaries had catastrophe reinsurance recoveries of $15.5 million , $31.8 million and $11.9 million under the catastrophe reinsurance program. The property and casualty insurance companies did not have any recoveries from the FHCF. The Life & Health Insurance segment had reinsurance recoveries of $1.6 million , $1.6 million and $0.2 million from the FHCF in 2019 , 2018 , and 2017 , respectively. Total catastrophe loss and LAE reserves, net of reinsurance recoverables, developed favorably by $17.1 million , $8.4 million and $4.5 million in 2019 , 2018 and 2017 , respectively. The Specialty Property & Casualty Insurance segment reported adverse catastrophe reserve development of $0.5 million in 2019 and favorable catastrophe reserve development of $0.3 million and $0.3 million in 2018 and 2017 , respectively. The Preferred Property & Casualty Insurance segment reported favorable catastrophe reserve development of $18.4 million , $8.2 million and $4.7 million in 2019 , 2018 and 2017 , respectively. The Life & Health Insurance segment reported adverse catastrophe reserve development of $0.8 million , $0.1 million , and $0.5 million in 2019 , 2018 and 2017 , respectively. The process of estimating and establishing reserves for catastrophe losses is inherently uncertain and the actual ultimate cost of a claim, net of actual reinsurance recoveries, may vary materially from the estimated amount reserved. The Company’s estimates of direct catastrophe losses are generally based on inspections by claims adjusters and historical loss development experience for areas that have not been inspected or for claims that have not yet been reported. The Company’s estimates of direct catastrophe losses are based on the coverages provided by its insurance policies. The Company’s homeowners and dwelling insurance policies do not provide coverage for losses caused by floods, but generally provide coverage for physical damage caused by wind or wind-driven rain. Accordingly, the Company’s estimates of direct losses for homeowners and dwelling insurance do not include losses caused by flood. Depending on the policy, automobile insurance may provide coverage for losses caused by flood. Estimates of the number and severity of claims ultimately reported are influenced by many variables, including, but not limited to, repair or reconstruction costs and determination of cause of loss that are difficult to quantify and will influence the final amount of claim settlements. All these factors, coupled with the impact of the availability of labor and material on costs, require significant judgment in the reserve setting process. A change in any one or more of these factors is likely to result in an ultimate net claim cost different from the estimated reserve. The Company’s estimates of indirect NOTE 20. CATASTROPHE REINSURANCE (Continued) losses from wind pools and joint underwriting associations are based on a variety of factors, including, but not limited to, actual or estimated assessments provided by or received from such entities, insurance industry estimates of losses, and estimates of the Company’s market share in the assessable states. Actual assessments may differ materially from these estimated amounts. In addition to the reinsurance programs described in Note 20 , “ Catastrophe Reinsurance ,” to the Consolidated Financial Statements, Kemper’s insurance subsidiaries utilize other reinsurance arrangements to limit their maximum loss, provide greater diversification of risk and to minimize exposures on larger risks. The ceding of insurance does not discharge the primary liability of the original insurer. Accordingly, insurance reserve liabilities are reported gross of any estimated recovery from reinsurers in the Consolidated Balance Sheets. Amounts recoverable from reinsurers are estimated in a manner consistent with the insurance reserve liability and are included in Other Receivables in the Consolidated Balance Sheets. Earned Premiums ceded on long-duration and short-duration policies were $27.4 million , $31.6 million and $18.2 million for the years ended December 31, 2019 , 2018 and 2017 , respectively, of which $20.5 million , $20.5 million and $11.0 million , respectively, was related to catastrophe reinsurance. See Note 20 , “ Catastrophe Reinsurance ,” to the Consolidated Financial Statements for additional information regarding the Company’s catastrophe reinsurance programs. Certain insurance subsidiaries assume business from other insurance companies and involuntary pools. Earned Premiums assumed on long-duration and short-duration policies were $92.3 million , $85.2 million and $72.9 million for the years ended December 31, 2019 , 2018 and 2017 , respectively. Trinity and Capitol County Mutual Fire Insurance Company (“Capitol”) are parties to a quota share reinsurance agreement whereby Trinity assumes 100% of the business written by Capitol, subject to a cap, for ceded losses for dwelling coverage. Earned Premiums assumed by Trinity from Capitol were $19.4 million , $20.0 million and $20.7 million for the years ended December 31, 2019 , 2018 and 2017 , respectively. Capitol is a mutual insurance company and, accordingly, is owned by its policyholders. Trinity and Old Reliable Casualty Company (“ORCC”), a subsidiary of Capitol, are parties to a quota share reinsurance agreement whereby Trinity assumes 100% of the business written by ORCC, subject to a cap, for ceded losses for dwelling coverage. Earned Premiums assumed by Trinity from ORCC were $5.2 million , $5.6 million and $5.9 million for the years ended December 31, 2019 , 2018 and 2017 , respectively. Five employees of the Company serve as directors of Capitol’s five member board of directors. Nine employees of the Company also serve as directors of ORCC’s nine member board of directors. Kemper’s subsidiary, United Insurance, provides claims and administrative services to Capitol and ORCC. In addition, agents appointed by Kemper’s subsidiary, The Reliable Life Insurance Company, and who are employed by United Insurance, are also appointed by Capitol and ORCC to sell property insurance products for the Company’s Life & Health Insurance segment. The Company also provides certain investment services to Capitol and ORCC. |
Other Reinsurance
Other Reinsurance | 12 Months Ended |
Dec. 31, 2019 | |
Reinsurance Disclosures [Abstract] | |
Other Reinsurance | CATASTROPHE REINSURANCE Catastrophes and natural disasters are inherent risks of the property and casualty insurance business. These catastrophic events and natural disasters include, without limitation, hurricanes, tornadoes, earthquakes, hailstorms, wildfires, high winds and winter storms. Such events result in insured losses that are, and will continue to be, a material factor in the results of operations and financial position of the Company’s property and casualty insurance companies. Further, because the level of these insured losses occurring in any one year cannot be accurately predicted, these losses may contribute to material year-to-year fluctuations in the results of operations and financial position of these companies. Specific types of catastrophic events are more likely to occur at certain times within the year than others. This factor adds an element of seasonality to property and casualty insurance claims. The Company has adopted the industry-wide catastrophe classifications of storms and other events promulgated by the Insurance Services Office (“ISO”) to track and report losses related to catastrophes. ISO classifies a disaster as a catastrophe when the event causes $25.0 million or more in direct insured losses to property and affects a significant number of policyholders and insurers. ISO-classified catastrophes are assigned a unique serial number recognized throughout the insurance industry. The discussions that follow utilize ISO’s definition of catastrophes. The Company 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 certain regions, and reinsurance. To limit its exposures to catastrophic events, the Company maintains a catastrophe reinsurance program for the property and casualty insurance companies. Coverage for the catastrophe reinsurance program is provided in various layers through multiple excess of loss reinsurance contracts and in 2019 and 2018 an annual aggregate excess property catastrophe reinsurance contract. NOTE 20. CATASTROPHE REINSURANCE (Continued) Coverage on individual catastrophes provided under the excess of loss reinsurance contracts effective January 1, 2019 to December 31, 2019 is provided in various layers as presented below. DOLLARS IN MILLIONS Catastrophe Losses and LAE Percentage of Coverage In Excess of Up to Retained $ — $ 50.0 — % 1st Layer of Coverage 50.0 150.0 95.0 2nd Layer of Coverage 150.0 250.0 95.0 3rd Layer of Coverage 250.0 275.0 95.0 Coverage on individual catastrophes provided under the excess of loss reinsurance contracts effective January 1, 2018 to December 31, 2018 is provided in various layers as presented below. DOLLARS IN MILLIONS Catastrophe Losses and LAE Percentage of Coverage In Excess of Up to Retained $ — $ 50.0 — % 1st Layer of Coverage 50.0 150.0 95.0 2nd Layer of Coverage (Tranche A) 150.0 250.0 63.3 2nd Layer of Coverage (Tranche B) 150.0 350.0 31.7 Coverage on individual catastrophes provided under the excess of loss reinsurance contracts effective January 1, 2017 to December 31, 2017 is provided in various layers as presented below. DOLLARS IN MILLIONS Catastrophe Losses and LAE Percentage of Coverage In Excess of Up to Retained $ — $ 50.0 — % 1st Layer of Coverage 50.0 150.0 95.0 2nd Layer of Coverage (Tranche A) 150.0 250.0 31.7 2nd Layer of Coverage (Tranche B) 150.0 350.0 63.3 In the event that the incurred catastrophe losses and LAE covered by the catastrophe reinsurance programs presented in the three preceding tables exceed the retention for that particular layer, each of the programs allow for one reinstatement of such coverage. In such an instance, the Company is required to pay a reinstatement premium to the reinsurers to reinstate the full amount of reinsurance available under such layer. Coverage provided under the 2019 aggregate property catastrophe reinsurance contract is summarized below. Aggregate Catastrophe DOLLARS IN MILLIONS In Excess of Up to Retained $ — $ 60.0 Coverage 60.0 110.0 Coverage provided under the 2018 aggregate property catastrophe reinsurance contract is summarized below. Aggregate Catastrophe DOLLARS IN MILLIONS In Excess of Up to Retained $ — $ 60.0 Coverage 60.0 110.0 NOTE 20. CATASTROPHE REINSURANCE (Continued) The catastrophe reinsurance in 2019 , 2018 and 2017 for the property and casualty insurance companies also included reinsurance coverage from the Florida Hurricane Catastrophe Fund (the “FHCF”) for hurricane losses in Florida at retentions lower than those described above. The Life & Health Insurance segment also purchases reinsurance from the FHCF for hurricane losses in Florida. Except for the coverage provided by the FHCF, the Life & Health Insurance segment does not carry any other catastrophe reinsurance coverage in 2019 , 2018 and 2017 . Reinsurance premiums for the Company’s catastrophe reinsurance programs and the FHCF Program reduced earned premiums for the years ended December 31, 2019 , 2018 and 2017 by the following: DOLLARS IN MILLIONS 2019 2018 2017 Specialty Property & Casualty Insurance $ 0.2 $ 2.6 $ 0.1 Preferred Property & Casualty Insurance 20.2 17.8 10.8 Life & Health Insurance 0.1 0.1 0.1 Total Ceded Catastrophe Reinsurance Premiums $ 20.5 $ 20.5 $ 11.0 In 2019 , 2018 and 2017 the Company paid $ 0.0 million , $0.4 million and $0.8 million respectively, in reinstatement premium. In 2019 , the Company received a $0.9 million refund of reinstatement premiums related to the 2017 and 2018 wildfires. Catastrophe losses and LAE (including reserve development), net of reinsurance recoveries, for the years ended December 31, 2019 , 2018 and 2017 by business segment are presented below. DOLLARS IN MILLIONS 2019 2018 2017 Specialty Property & Casualty Insurance $ 11.6 $ 4.4 $ 5.2 Preferred Property & Casualty Insurance 44.6 79.1 168.8 Life & Health Insurance 3.9 4.1 6.4 Total Catastrophe Losses and LAE $ 60.1 $ 87.6 $ 180.4 In 2019 , 2018 and 2017 Kemper’s property and casualty subsidiaries had catastrophe reinsurance recoveries of $15.5 million , $31.8 million and $11.9 million under the catastrophe reinsurance program. The property and casualty insurance companies did not have any recoveries from the FHCF. The Life & Health Insurance segment had reinsurance recoveries of $1.6 million , $1.6 million and $0.2 million from the FHCF in 2019 , 2018 , and 2017 , respectively. Total catastrophe loss and LAE reserves, net of reinsurance recoverables, developed favorably by $17.1 million , $8.4 million and $4.5 million in 2019 , 2018 and 2017 , respectively. The Specialty Property & Casualty Insurance segment reported adverse catastrophe reserve development of $0.5 million in 2019 and favorable catastrophe reserve development of $0.3 million and $0.3 million in 2018 and 2017 , respectively. The Preferred Property & Casualty Insurance segment reported favorable catastrophe reserve development of $18.4 million , $8.2 million and $4.7 million in 2019 , 2018 and 2017 , respectively. The Life & Health Insurance segment reported adverse catastrophe reserve development of $0.8 million , $0.1 million , and $0.5 million in 2019 , 2018 and 2017 , respectively. The process of estimating and establishing reserves for catastrophe losses is inherently uncertain and the actual ultimate cost of a claim, net of actual reinsurance recoveries, may vary materially from the estimated amount reserved. The Company’s estimates of direct catastrophe losses are generally based on inspections by claims adjusters and historical loss development experience for areas that have not been inspected or for claims that have not yet been reported. The Company’s estimates of direct catastrophe losses are based on the coverages provided by its insurance policies. The Company’s homeowners and dwelling insurance policies do not provide coverage for losses caused by floods, but generally provide coverage for physical damage caused by wind or wind-driven rain. Accordingly, the Company’s estimates of direct losses for homeowners and dwelling insurance do not include losses caused by flood. Depending on the policy, automobile insurance may provide coverage for losses caused by flood. Estimates of the number and severity of claims ultimately reported are influenced by many variables, including, but not limited to, repair or reconstruction costs and determination of cause of loss that are difficult to quantify and will influence the final amount of claim settlements. All these factors, coupled with the impact of the availability of labor and material on costs, require significant judgment in the reserve setting process. A change in any one or more of these factors is likely to result in an ultimate net claim cost different from the estimated reserve. The Company’s estimates of indirect NOTE 20. CATASTROPHE REINSURANCE (Continued) losses from wind pools and joint underwriting associations are based on a variety of factors, including, but not limited to, actual or estimated assessments provided by or received from such entities, insurance industry estimates of losses, and estimates of the Company’s market share in the assessable states. Actual assessments may differ materially from these estimated amounts. In addition to the reinsurance programs described in Note 20 , “ Catastrophe Reinsurance ,” to the Consolidated Financial Statements, Kemper’s insurance subsidiaries utilize other reinsurance arrangements to limit their maximum loss, provide greater diversification of risk and to minimize exposures on larger risks. The ceding of insurance does not discharge the primary liability of the original insurer. Accordingly, insurance reserve liabilities are reported gross of any estimated recovery from reinsurers in the Consolidated Balance Sheets. Amounts recoverable from reinsurers are estimated in a manner consistent with the insurance reserve liability and are included in Other Receivables in the Consolidated Balance Sheets. Earned Premiums ceded on long-duration and short-duration policies were $27.4 million , $31.6 million and $18.2 million for the years ended December 31, 2019 , 2018 and 2017 , respectively, of which $20.5 million , $20.5 million and $11.0 million , respectively, was related to catastrophe reinsurance. See Note 20 , “ Catastrophe Reinsurance ,” to the Consolidated Financial Statements for additional information regarding the Company’s catastrophe reinsurance programs. Certain insurance subsidiaries assume business from other insurance companies and involuntary pools. Earned Premiums assumed on long-duration and short-duration policies were $92.3 million , $85.2 million and $72.9 million for the years ended December 31, 2019 , 2018 and 2017 , respectively. Trinity and Capitol County Mutual Fire Insurance Company (“Capitol”) are parties to a quota share reinsurance agreement whereby Trinity assumes 100% of the business written by Capitol, subject to a cap, for ceded losses for dwelling coverage. Earned Premiums assumed by Trinity from Capitol were $19.4 million , $20.0 million and $20.7 million for the years ended December 31, 2019 , 2018 and 2017 , respectively. Capitol is a mutual insurance company and, accordingly, is owned by its policyholders. Trinity and Old Reliable Casualty Company (“ORCC”), a subsidiary of Capitol, are parties to a quota share reinsurance agreement whereby Trinity assumes 100% of the business written by ORCC, subject to a cap, for ceded losses for dwelling coverage. Earned Premiums assumed by Trinity from ORCC were $5.2 million , $5.6 million and $5.9 million for the years ended December 31, 2019 , 2018 and 2017 , respectively. Five employees of the Company serve as directors of Capitol’s five member board of directors. Nine employees of the Company also serve as directors of ORCC’s nine member board of directors. Kemper’s subsidiary, United Insurance, provides claims and administrative services to Capitol and ORCC. In addition, agents appointed by Kemper’s subsidiary, The Reliable Life Insurance Company, and who are employed by United Insurance, are also appointed by Capitol and ORCC to sell property insurance products for the Company’s Life & Health Insurance segment. The Company also provides certain investment services to Capitol and ORCC. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | FAIR VALUE MEASUREMENTS The Company classifies its investments in Fixed Maturities as available for sale and reports these investments at fair value. The Company reports equity investments with readily determinable fair values as Equity Securities at Fair Value. Certain investments that are measured at fair value using the net asset value practical expedient are not required to be classified using the fair value hierarchy, but are presented in the following two tables to permit reconciliation of the fair value hierarchy to the amounts presented in the Consolidated Balance Sheet. NOTE 22. FAIR VALUE MEASUREMENTS (Continued) The valuation of assets measured at fair value in the Company’s Consolidated Balance Sheet at December 31, 2019 is summarized below. The Company has no material liabilities that are measured and reported at fair value. DOLLARS IN MILLIONS Fair Value Measurements Total Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Measured at Net Asset Value Fixed Maturities: U.S. Government and Government Agencies and Authorities $ 144.3 $ 671.6 $ — — $ 815.9 States and Political Subdivisions — 1,515.8 — — 1,515.8 Foreign Governments — 16.8 — — 16.8 Corporate Securities: Bonds and Notes — 3,450.6 409.1 — 3,859.7 Redeemable Preferred Stocks — — 6.7 — 6.7 Collateralized Loan Obligations — — 618.2 — 618.2 Other Mortgage- and Asset-backed — 78.8 10.2 — 89.0 Total Investments in Fixed Maturities 144.3 5,733.6 1,044.2 — 6,922.1 Equity Securities at Fair Value: Preferred Stocks: Finance, Insurance and Real Estate — 44.5 — — 44.5 Other Industries 0.9 13.8 — — 14.7 Common Stocks: Finance, Insurance and Real Estate 12.8 — — — 12.8 Other Industries 0.2 0.2 — — 0.4 Other Equity Interests: Exchange Traded Funds 586.8 — — — 586.8 Limited Liability Companies and Limited Partnerships — — — 248.1 248.1 Total Investments in Equity Securities at Fair Value 600.7 58.5 — 248.1 907.3 Convertible Securities at Fair Value — 37.3 — — 37.3 Total $ 745.0 $ 5,829.4 $ 1,044.2 $ 248.1 $ 7,866.7 NOTE 22. FAIR VALUE MEASUREMENTS (Continued) At December 31, 2019 , the Company had unfunded commitments to invest an additional $248.1 million in certain limited liability investment companies and limited partnerships that will be included in Other Equity Interests when funded. The valuation of assets measured at fair value in the Company’s Consolidated Balance Sheet at December 31, 2018 is summarized below. DOLLARS IN MILLIONS Fair Value Measurements Total Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Measured at Net Asset Value Fixed Maturities: U.S. Government and Government Agencies and Authorities $ 156.5 $ 709.2 $ — $ — $ 865.7 States and Political Subdivisions — 1,619.1 — — 1,619.1 Foreign Governments — 5.9 — — 5.9 Corporate Securities: Bonds and Notes — 3,011.2 382.6 — 3,393.8 Collateralized Loan Obligations — 19.1 504.9 — 524.0 Other Mortgage- and Asset-backed — 5.8 9.9 — 15.7 Total Investments in Fixed Maturities 156.5 5,370.3 897.4 — 6,424.2 Equity Securities at Fair Value: Preferred Stocks: Finance, Insurance and Real Estate — 41.2 — — 41.2 Other Industries — 13.0 — — 13.0 Common Stocks: Finance, Insurance and Real Estate 10.2 — — — 10.2 Other Industries 0.2 0.5 — — 0.7 Other Equity Interests: Exchange Traded Funds 427.3 — — — 427.3 Limited Liability Companies and Limited Partnerships — — — 192.0 192.0 Total Investments in Equity Securities at Fair Value 437.7 54.7 — 192.0 684.4 Convertible Securities at Fair Value — 31.5 — — 31.5 Total $ 594.2 $ 5,456.5 $ 897.4 $ 192.0 $ 7,140.1 The Company’s investments in Fixed Maturities that are classified as Level 1 in the two preceding tables primarily consist of U.S. Treasury Bonds and Notes. The Company’s investments in Equity Securities at Fair Value that are classified as Level 1 in the two preceding tables consist of either investments in publicly-traded common stocks or exchange traded funds. The Company’s investments in Fixed Maturities that are classified as Level 2 in the two preceding tables primarily consist of investments in corporate bonds, obligations of states and political subdivisions, and bonds and mortgage-backed securities of U.S. government agencies. The Company’s investments in Equity Securities at Fair Value that are classified as Level 2 in the two preceding tables primarily consist of investments in preferred stocks. The Company uses a leading, nationally recognized provider of market data and analytics to price the vast majority of the Company’s Level 2 measurements. The provider utilizes evaluated pricing models that vary by asset class and incorporate available trade, bid and other market information. Because many fixed maturity securities do not trade on a daily basis, the provider’s evaluated pricing applications apply available NOTE 22. FAIR VALUE MEASUREMENTS (Continued) information through processes such as benchmark curves, benchmarking of like securities, sector groupings and matrix pricing to prepare evaluations. In addition, the provider uses model processes to develop prepayment and interest rate scenarios. The pricing provider’s models and processes also take into account market convention. For each asset class, teams of its evaluators gather information from market sources and integrate relevant credit information, perceived market movements and sector news into the evaluated pricing applications and models. The Company generally validates the measurements obtained from its primary pricing provider by comparing them with measurements obtained from one additional pricing provider that provides either prices from recent market transactions, quotes in inactive markets or evaluations based on its own proprietary models. The Company investigates significant differences related to the values provided. On completion of its investigation, management exercises judgment to determine the price selected and whether adjustments, if any, to the price obtained from the Company’s primary pricing provider would warrant classification of the price as Level 3. In instances where a measurement cannot be obtained from either pricing provider, the Company generally will evaluate bid prices from one or more binding quotes obtained from market makers to value investments in inactive markets and classified by the Company as Level 2. The Company generally classifies securities when it receives non-binding quotes or indications as Level 3 securities unless the Company can validate the quote or indication against recent transactions in the market. The Company’s Investments in Fixed Maturities that are classified as Level 3 in the two preceding tables are priced primarily using a market yield approach and primarily consist of collateralized loan obligations that are rated by a Nationally Recognized Statistical Rating Organization (“NRSRO”) and privately placed securities that are not rated by a NRSRO. A market yield approach uses a risk-free rate plus a credit spread depending on the underlying credit profile of the security. The Company uses a leading, nationally recognized provider of market data and analytics to price the vast majority of its collateralized loan obligations. Some of the significant inputs used by such provider are unobservable. Accordingly, the Company classifies these investments as Level 3. For floating rate securities, the risk-free rate used in the market yield is the contractual floating rate of the security. For each other individual security, the Company or the Company’s third party appraiser gathers information from market sources, relevant credit information, perceived market movements and sector news and determines an appropriate market yield for each security. The market yield selected is then used to discount the estimated future cash flows of the security to determine the fair value. The Company separately evaluates market yields based upon asset class to assess the reasonableness of the recorded fair value. For non-investment-grade Investments in Fixed Maturities that are classified as Level 3, the two primary asset classes are senior debt and junior debt. Senior debt includes those securities that receive first priority in a liquidation and junior debt includes any fixed maturity security with other than first priority in a liquidation. The table below presents quantitative information about the significant unobservable inputs utilized by the Company in determining fair values for fixed maturity investments in corporate securities classified as Level 3 at December 31, 2019 . DOLLARS IN MILLIONS Unobservable Input Total Fair Value Range of Unobservable Inputs Weighted-average Yield Investment-grade Market Yield $ 204.2 2.4 % - 8.5 % 4.1 % Non-investment-grade: Senior Debt Market Yield 123.7 2.4 - 21.5 9.1 Junior Debt Market Yield 81.3 9.6 - 18.0 13.1 Collateralized Loan Obligations (investment-grade and non-investment-grade) Market Yield 613.5 3.2 - 12.5 5.1 Other Various 21.5 Total Level 3 Fixed Maturity Investments in Corporate Securities $ 1,044.2 NOTE 22. FAIR VALUE MEASUREMENTS (Continued) The table below presents quantitative information about the significant unobservable inputs utilized by the Company in determining fair values for fixed maturity investments in corporate securities classified as Level 3 at December 31, 2018 . DOLLARS IN MILLIONS Unobservable Input Total Fair Value Range of Unobservable Inputs Weighted-average Yield Investment-grade Market Yield $ 146.7 3.7 % - 10.9 % 5.2 % Non-investment-grade: Senior Debt Market Yield 142.3 4.8 - 30.0 11.5 Junior Debt Market Yield 87.6 11.0 - 28.5 14.2 Collateralized Loan Obligations (investment-grade and non-investment-grade) Market Yield 504.9 4.1 - 13.4 6.1 Other Various 15.9 Total Level 3 Fixed Maturity Investments in Corporate Securities $ 897.4 For an investment in a fixed maturity security, an increase in the yield used to determine the fair value of the security will decrease the fair value of the security. A decrease in the yield used to determine fair value will increase the fair value of the security, but the fair value increase is generally limited to par, unless callable at a premium, if the security is currently callable. Information by security type pertaining to the changes in the fair value of the Company’s investments classified as Level 3 for the year ended December 31, 2019 is presented below. DOLLARS IN MILLIONS Fixed Maturities Corporate Redeemable Preferred Stocks Collateralized Loan Obligations Other Mortgage- and Asset- backed Total Balance at Beginning of Year $ 382.6 $ — $ 504.9 $ 9.9 $ 897.4 Total Gains (Losses): Included in Consolidated Statement of Income (6.8 ) — 0.6 — (6.2 ) Included in Other Comprehensive Income (Loss) 10.6 (0.1 ) 5.3 1.0 16.8 Purchases 307.0 6.8 119.2 — 433.0 Settlements (72.9 ) — (28.0 ) (0.7 ) (101.6 ) Sales (211.4 ) — (2.9 ) — (214.3 ) Transfers into Level 3 — — 19.1 — 19.1 Transfers out of Level 3 — — — — — Balance at End of Year $ 409.1 $ 6.7 $ 618.2 $ 10.2 $ 1,044.2 The Company’s policy is to recognize transfers between levels as of the end of the reporting period. There were no transfers between Levels 1 and 2 for the year ended December 31, 2019 . Transfers into Level 3 of $19.1 million for the year ended December 31, 2019 were due to changes in the availability of market observable inputs. There were no transfers out of Level 3 for the year ended December 31, 2019 . NOTE 22. FAIR VALUE MEASUREMENTS (Continued) Information by security type pertaining to the changes in the fair value of the Company’s investments classified as Level 3 for the year ended December 31, 2018 is presented below. DOLLARS IN MILLIONS Fixed Maturities Equity Securities Total Corporate Bonds and Notes States and Political Sub-divisions Redeemable Preferred Stocks Collateralized Loan Obligations Other Mortgage- Preferred and Common Stocks Other Equity Interests Balance at Beginning of Year $ 401.5 $ — $ 0.1 $ 93.2 $ — $ 27.4 $ 34.4 $ 556.6 Total Gains (Losses): Included in Consolidated Statement of Income 4.4 — (0.1 ) 2.7 — — — 7.0 Included in Other Comprehensive Income (Loss) (2.2 ) — — (16.3 ) 0.1 — — (18.4 ) Purchases 201.8 1.8 — 449.7 10.0 — — 663.3 Settlements (108.1 ) — — (58.3 ) (0.2 ) — — (166.6 ) Sales (109.5 ) — — — — — — (109.5 ) Transfers into Level 3 2.4 — — 33.9 — — — 36.3 Transfers out of Level 3 (7.7 ) (1.8 ) — — — (27.4 ) (34.4 ) (71.3 ) Balance at End of Year $ 382.6 $ — $ — $ 504.9 $ 9.9 $ — $ — $ 897.4 There were no transfers between Levels 1 and 2 for the year ended December 31, 2018 . Transfers into Level 3 for the year ended December 31, 2018 relate to transfers from Level 2 due to to changes in the availability of market observable inputs. Transfers out of Level 3 were $71.3 million for the year ended December 31, 2018 , of which $61.8 million was transferred into Equity Securities at Modified Cost due to the adoption of ASU 2016-01 and $9.5 million was transferred into Level 2 due to changes in the availability of market observable inputs. Presented below are the carrying values and fair value estimates of financial instruments not carried at fair value. December 31, 2019 December 31, 2018 (Dollars in Millions) Carrying Value Fair Value Carrying Value Fair Value Financial Assets: Loans to Policyholders $ 305.6 $ 612.4 $ 300.6 $ 542.6 Short-term Investments 470.9 470.9 286.1 286.1 Mortgage Loans 27.5 27.5 — — Financial Liabilities: Debt 778.4 820.2 909.0 911.2 Policyholder Contract Liabilities 243.4 243.4 10.0 10.0 The fair value measurement for loans to policyholders are categorized as Level 3 within the fair value hierarchy. The fair value measurement of Short-term Investments is estimated using inputs that are considered either Level 1 or Level 2 measurements. The fair value measurement of Mortgage Loans is estimated using inputs that are considered Level 2 measurements.The fair value of Debt is estimated using quoted prices for similar liabilities in markets that are not active. The inputs used in the valuation are considered Level 2 measurements. Policyholder Contract Liabilities consist of advances from the FHLB of Chicago, and the inputs used in the valuation are considered Level 2 measurements. |
Contingencies
Contingencies | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | CONTINGENCIES In the ordinary course of its businesses, the Company is involved in legal proceedings, including lawsuits, arbitrations, regulatory examinations, audits and inquiries. Except with regard to the matters discussed below, based on currently available information, the Company does not believe that it is reasonably possible that any of its pending legal proceedings will have a material effect on the Company’s consolidated financial statements. Over the last decade there have been an array of initiatives that intend, in various ways, to impose new duties on life insurance companies to proactively search for information related to the deaths of their insureds. These initiatives, which can include legislation, audits, regulatory examinations and related litigation, seek to alter the terms of life insurance contracts by imposing requirements that did not exist and were not contemplated at the time the issuing companies entered into such contracts. In 2016, the Company voluntarily began implementing a comprehensive process to compare the life insurance records of its life insurance subsidiaries against one or more death verification databases to determine if any of its insureds may be deceased. The initial implementation of the process is continuing. Attempts to estimate the ultimate outcomes of the aforementioned initiatives entail uncertainties including but not limited to (i) the scope and interpretation of pertinent statutes, including the matching criteria and methodologies to be used in comparing policy records against a death verification database, (ii) the universe of policies affected, (iii) the results of audits, examinations and other actions by regulators and (iv) related litigation. Gain Contingency In 2015, Kemper’s subsidiary, Kemper Corporate Services, Inc. (“KCSI”), filed a demand for arbitration with the American Arbitration Association (“AAA”), claiming that CSC had breached the terms of a master software license and services agreement and related agreements (collectively, the “Agreements”) by failing, among other things, to timely produce and deliver certain software to KCSI. CSC denied KCSI’s claims and filed a counterclaim. In April 2017, CSC merged with a spin-off of the Enterprise Services business of Hewlett Packard Enterprise Company and is now known as DXC Technology Company (“DXC”). DXC stock is publicly traded on the New York Stock Exchange. In April 2017, the parties participated in an evidentiary hearing in Texas before a AAA-appointed arbitrator. Subsequently, in October 2017, the arbitrator issued a Partial Final Award finding that CSC had breached the Agreements and awarded KCSI direct damages plus pre-judgment interest. KCSI then submitted to the arbitrator a supplemental petition providing pre-judgment interest calculations and seeking an award for certain costs and expenses. In November 2017, the arbitrator issued a Final Award awarding KCSI direct damages against CSC of $84.3 million , prejudgment interest at the annual rate of 9% and costs and expenses in the amount of $7.2 million . KCSI pursued confirmation and enforcement of the Final Award in U.S. District Court in Texas. In September 2018, the Texas district court issued an Amended Final Judgment that (i) confirmed the Arbitration Award in favor of KCSI, (ii) denied CSC’s motion to vacate, and (iii) entered judgment against CSC in the total amount of $141.7 million. CSC appealed the district court’s ruling to the U.S. Court of Appeals for the Fifth Circuit, but in the meantime paid Kemper $35.7 million in September 2018 and an additional $20.1 million in April 2019 in partial satisfaction of the final judgment. The Company recognized such payments in Other Income in its Consolidated Statement of Income for the years ended December 31, 2018 and December 31, 2019, respectively. On January 10, 2020 , the Court of Appeals for the Fifth Circuit issued a unanimous opinion affirming the ruling of the district court. On January 24, 2020 , CSC filed a petition with the Fifth Circuit requesting a rehearing en banc. The Company cannot make any assurance as to the additional amounts of the final judgment that will actually be collected or when they may be received. The unpaid balance of the final judgment is treated as a gain contingency for accounting purposes and accordingly, is not recognized in these Consolidated Financial Statements. |
Related Parties
Related Parties | 12 Months Ended |
Dec. 31, 2019 | |
Related Party Transactions [Abstract] | |
Related Parties | RELATED PARTIES Mr. Christopher B. Sarofim, a director of Kemper, is Vice Chairman and a member of the board of directors of Fayez Sarofim & Co. (“FS&C”), a registered investment advisory firm. The Company’s defined benefit pension plan had $149.3 million , $124.5 million and $171.8 million in assets managed by FS&C at December 31, 2019 , 2018 and 2017 , respectively, under an agreement with FS&C whereby FS&C provides investment management services with respect to certain funds of the plan. Investment Expenses incurred in connection with such agreement were $0.9 million for each year ended December 31, 2019 , 2018 and 2017 . The Company believes that the services described above have been provided on terms no less favorable to the Company than could have been negotiated with non-affiliated third parties. As described in Note 21 , “ Other Reinsurance ,” to the Consolidated Financial Statements, the Company also has certain relationships with Capitol, a mutual insurance company that is owned by its policyholders, and its subsidiary, ORCC. |
Quarterly Financial Information
Quarterly Financial Information (Unaudited) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Data [Abstract] | |
Quarterly Financial Information (Unaudited) | QUARTERLY FINANCIAL INFORMATION (Unaudited) Three Months Ended (Unaudited) Year Ended DOLLARS IN MILLIONS, EXCEPT PER SHARE AMOUNTS Mar 31, Jun 30, Sep 30, Dec 31, Dec 31, Revenues: Earned Premiums $ 1,074.8 $ 1,116.6 $ 1,135.2 $ 1,145.8 $ 4,472.4 Net Investment Income 82.7 96.0 91.7 93.9 364.3 Other Income 1.9 22.7 7.2 3.7 35.5 Income (Loss) from Changes in Fair Value of Equity and Convertible Securities 64.4 25.5 9.8 39.2 138.9 Net Realized Gains on Sales of Investments 16.1 21.3 1.7 2.8 41.9 Other-than-temporary Impairment Losses: Total Other-than-temporary Impairment Losses (3.5 ) (6.7 ) (1.8 ) (1.7 ) (13.7 ) Portion of Losses Recognized in Other Comprehensive Income (0.1 ) — — — (0.1 ) Net Impairment Losses Recognized in Earnings (3.6 ) (6.7 ) (1.8 ) (1.7 ) (13.8 ) Total Revenues 1,236.3 1,275.4 1,243.8 1,283.7 5,039.2 Expenses: Policyholders’ Benefits and Incurred Losses and Loss Adjustment Expenses 765.4 825.4 782.6 814.9 3,188.3 Insurance Expenses 234.8 263.5 256.0 265.4 1,019.7 Loss from Early Extinguishment of Debt — — 5.8 — 5.8 Interest and Other Expenses 41.4 38.0 37.9 46.5 163.8 Total Expenses 1,041.6 1,126.9 1,082.3 1,126.8 4,377.6 Income from Continuing Operations before Income Taxes 194.7 148.5 161.5 156.9 661.6 Income Tax Expense (39.4 ) (26.4 ) (32.5 ) (32.2 ) (130.5 ) Net Income $ 155.3 $ 122.1 $ 129.0 $ 124.7 $ 531.1 Net Income (Loss) Per Unrestricted Share: Basic $ 2.38 $ 1.87 $ 1.93 $ 1.87 $ 8.04 Diluted $ 2.35 $ 1.84 $ 1.91 $ 1.85 $ 7.96 Dividends Paid to Shareholders Per Share $ 0.25 $ 0.25 $ 0.25 $ 0.28 $ 1.03 The sum of quarterly per share amounts may not equal per share amounts for the year due to differences in weighted-average shares and/or equivalent shares outstanding for each of the periods presented. NOTE 25. QUARTERLY FINANCIAL INFORMATION (Unaudited) (Continued) Three Months Ended (Unaudited) Year Ended DOLLARS IN MILLIONS, EXCEPT PER SHARE AMOUNTS Mar 31, Jun 30, Sep 30, Dec 31, Dec 31, Revenues: Earned Premiums $ 609.8 $ 658.1 $ 1,052.9 $ 1,063.6 $ 3,384.4 Net Investment Income 79.2 78.4 92.0 91.3 340.9 Other Income 1.2 1.2 37.8 2.0 42.2 Income (Loss) from Changes in Fair Value of Equity and Convertible Securities 0.7 0.4 11.0 (76.4 ) (64.3 ) Net Realized Gains on Sales of Investments 2.6 3.8 3.6 16.4 26.4 Other-than-temporary Impairment Losses: Total Other-than-temporary Impairment Losses (0.5 ) — (1.8 ) (2.2 ) (4.5 ) Portion of Losses Recognized in Other Comprehensive Income — — — — — Net Impairment Losses Recognized in Earnings (0.5 ) — (1.8 ) (2.2 ) (4.5 ) Total Revenues 693.0 741.9 1,195.5 1,094.7 3,725.1 Expenses: Policyholders’ Benefits and Incurred Losses and Loss Adjustment Expenses 436.9 499.5 757.3 772.8 2,466.5 Insurance Expenses 160.1 171.2 296.0 273.2 900.5 Interest and Other Expenses 29.0 25.7 61.7 42.6 159.0 Total Expenses 626.0 696.4 1,115.0 1,088.6 3,526.0 Income (Loss) from Continuing Operations before Income Taxes 67.0 45.5 80.5 6.1 199.1 Income Tax Benefit (Expense) (13.4 ) (8.0 ) 11.8 (1.1 ) (10.7 ) Income from Continuing Operations 53.6 37.5 92.3 5.0 188.4 Income (Loss) from Discontinued Operations 0.2 0.1 (0.1 ) 1.5 1.7 Net Income $ 53.8 $ 37.6 $ 92.2 $ 6.5 $ 190.1 Income from Continuing Operations Per Unrestricted Share: Basic $ 1.03 $ 0.73 $ 1.42 $ 0.08 $ 3.22 Diluted $ 1.02 $ 0.73 $ 1.40 $ 0.08 $ 3.19 Net Income Per Unrestricted Share: Basic $ 1.03 $ 0.73 $ 1.42 $ 0.10 $ 3.25 Diluted $ 1.02 $ 0.73 $ 1.40 $ 0.10 $ 3.22 Dividends Paid to Shareholders Per Share $ 0.24 $ 0.24 $ 0.24 $ 0.24 $ 0.96 The sum of quarterly per share amounts may not equal per share amounts for the year due to differences in weighted-average shares and/or equivalent shares outstanding for each of the periods presented. |
Schedule 1 - Investments Other
Schedule 1 - Investments Other Than Investments in Related Parties | 12 Months Ended |
Dec. 31, 2019 | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Abstract] | |
Schedule of Investments Other than Investments in Related Parties | KEMPER CORPORATION AND SUBSIDIARIES INVESTMENTS OTHER THAN INVESTMENTS IN RELATED PARTIES DECEMBER 31, 2019 (Dollars in Millions) Amortized Cost Fair Value Amount Carried in Balance Sheet Fixed Maturities: Bonds and Notes: United States Government and Government Agencies and Authorities $ 784.7 $ 815.9 $ 815.9 States and Political Subdivisions 1,386.4 1,515.8 1,515.8 Foreign Governments 17.2 16.8 16.8 Corporate Securities: Other Bonds and Notes 3,465.0 3,859.7 3,859.7 Redeemable Preferred Stocks 6.8 6.7 6.7 Collateralized Loan Obligations 624.6 618.2 618.2 Other Mortgage- and Asset-backed 88.0 89.0 89.0 Total Investments in Fixed Maturities 6,372.7 6,922.1 6,922.1 Equity Securities at Fair Value: Preferred Stocks 59.2 59.2 59.2 Common Stocks 13.2 13.2 13.2 Other Equity Interests 834.9 834.9 834.9 Total Investments in Equity Securities 907.3 907.3 907.3 Equity Securities at Modified Cost 41.9 XXX.X 41.9 Equity Method Limited Liability Investments at Cost Plus Cumulative Undistributed Earnings 220.4 XXX.X 220.4 Convertible Securities at Fair Value 37.3 37.3 37.3 Loans, Real Estate and Other Investments 444.5 XXX.X 444.5 Short-term Investments 470.9 XXX.X 470.9 Total Investments $ 8,495.0 $ 9,044.4 See Accompanying Report of Independent Registered Public Accounting Firm. |
Schedule 2 - Parent Company Fin
Schedule 2 - Parent Company Financial Statements | 12 Months Ended |
Dec. 31, 2019 | |
Condensed Financial Information Disclosure [Abstract] | |
Parent Company Financial Statements | SCHEDULE II KEMPER CORPORATION PARENT COMPANY BALANCE SHEETS (Dollars in Millions) December 31, 2019 2018 ASSETS Investments in Subsidiaries $ 4,383.7 $ 3,736.0 Fixed Maturities at Fair Value (Amortized Cost: 2018 – $12.6) — 12.6 Equity Securities at Fair Value 55.7 20.4 Short-term Investments 89.3 64.6 Cash 61.8 2.9 Other Receivables 21.9 5.7 Other Assets 21.9 14.4 Right-of-Use Assets 18.6 — Total Assets $ 4,652.9 $ 3,856.6 LIABILITIES AND SHAREHOLDERS’ EQUITY Term Loan due June 29, 2020 (Fair Value: 2018 – $35.0) — 34.9 Term Loan due July 5, 2023 (Fair Value: 2019 – $50.0) 49.9 — Senior Notes Payable, 4.35% due 2025 (Fair Value: 2019 – $478.6; 2018 – $444.2) 448.6 448.4 Subordinated Debentures due 2054 (Fair Value: 2018 – $151.1) — 144.2 Current Income Tax Liability 55.3 40.5 Deferred Income Tax Liability 32.2 20.2 Liabilities for Benefit Plans 44.3 98.2 Right-of-Use Liabilities 31.3 — Accrued Expenses and Other Liabilities 19.0 20.1 Total Liabilities 680.6 806.5 Shareholders’ Equity: Common Stock 6.7 6.5 Additional Paid-in Capital 1,819.2 1,666.3 Retained Earnings 1,810.3 1,355.5 Accumulated Other Comprehensive Income 336.1 21.8 Total Shareholders’ Equity 3,972.3 3,050.1 Total Liabilities and Shareholders’ Equity $ 4,652.9 $ 3,856.6 See Accompanying Report of Independent Registered Public Accounting Firm. KEMPER CORPORATION PARENT COMPANY STATEMENTS OF INCOME (Dollars in Millions) For the Year Ended December 31, 2019 2018 2017 Net Investment Income $ 2.1 $ 2.5 $ 3.0 Income from Change in Fair Value of Equity Securities 1.6 1.4 — Net Realized Gains (Losses) on Sales of Investments 0.3 (0.7 ) 0.6 Total Revenues 4.0 3.2 3.6 Interest Expense 28.5 37.6 36.6 Loss from Early Extinguishment of Debt 5.8 — — Other Operating (Benefits) Expenses 4.0 26.3 (5.1 ) Total Operating Expenses 38.3 63.9 31.5 Loss before Income Taxes and Equity in Net Income of Subsidiaries (34.3 ) (60.7 ) (27.9 ) Income Tax Benefit 9.4 12.2 21.2 Loss before Equity in Net Income of Subsidiaries (24.9 ) (48.5 ) (6.7 ) Equity in Net Income of Subsidiaries 556.0 238.6 127.6 Net Income $ 531.1 $ 190.1 $ 120.9 See Accompanying Report of Independent Registered Public Accounting Firm. KEMPER CORPORATION PARENT COMPANY STATEMENTS OF COMPREHENSIVE INCOME (Dollars in Millions) For the Year Ended December 31, 2019 2018 2017 Net Income $ 531.1 $ 190.1 $ 120.9 Other Comprehensive Income (Loss): Unrealized Holding Gains (Losses) Arising During the Year: Securities Held by Subsidiaries 433.2 (214.1 ) 119.5 Securities Held by Parent 0.2 (0.1 ) (0.4 ) Reclassification Adjustment for Amounts Included in Net Income: Securities Held by Subsidiaries (27.9 ) (21.9 ) (35.3 ) Securities Held by Parent (0.2 ) — — Unrealized Holding Gains (Losses) 405.3 (236.1 ) 83.8 Unrecognized Postretirement Benefit Costs Arising During the Year: Securities Held by Subsidiaries (0.6 ) — — Securities Held by Parent (4.2 ) (8.0 ) 3.9 Reclassification Adjustments for Amounts Included in Net Income: Amortization of Unrecognized Postretirement Benefits (Costs) (3.0 ) 1.1 (0.6 ) Total Reclassification Adjustments for Amounts Included in Net Income (3.0 ) 1.1 (0.6 ) Net Unrecognized Postretirement Benefit Costs (7.8 ) (6.9 ) 3.3 Foreign Currency Translation Adjustments on Investments Held by Subsidiaries — 0.3 1.7 Gains (Losses) on Cash Flow Hedge 0.4 1.2 (6.7 ) Other Comprehensive Income (Loss) before Income Taxes 397.9 (241.5 ) 82.1 Income Tax Benefit (Expense): Unrealized Holding Gains and Losses Arising During the Year: Securities Held by Subsidiaries (91.0 ) 45.0 (38.3 ) Securities Held by Parent — — 0.1 Reclassification Adjustment for Amounts Included in Net Income: Securities Held by Subsidiaries 5.8 4.6 12.3 Unrealized Holding Gains and Losses (85.2 ) 49.6 (25.9 ) Unrecognized Postretirement Benefit Costs Arising During the Year 1.0 1.7 (0.8 ) Reclassification Adjustments for Amounts Included in Net Income: Amortization of Unrecognized Postretirement Benefit Costs 0.7 (0.2 ) 0.2 Total Reclassification Adjustments for Amounts Included in Net Income 0.7 (0.2 ) 0.2 Net Unrecognized Postretirement Benefit Costs 1.7 1.5 (0.6 ) Foreign Currency Translation Adjustments on Investments Held by Subsidiaries — (0.1 ) (0.6 ) Gains (Losses) on Cash Flow Hedge (0.1 ) (0.3 ) 2.4 Income Tax Benefit (Expense) (83.6 ) 50.7 (24.7 ) Other Comprehensive Income (Loss) 314.3 (190.8 ) 57.4 Total Comprehensive Income (Loss) $ 845.4 $ (0.7 ) $ 178.3 See Accompanying Report of Independent Registered Public Accounting Firm. KEMPER CORPORATION PARENT COMPANY STATEMENTS OF CASH FLOWS (Dollars in Millions) For the Year Ended December 31, 2019 2018 2017 Operating Activities: Net Income $ 531.1 $ 190.1 $ 120.9 Adjustment Required to Reconcile Net Income to Net Cash Provided by Operations: Equity in Net Income of Subsidiaries (556.0 ) (238.6 ) (127.6 ) Cash Dividends from Subsidiaries 239.0 130.4 108.1 Cash Contribution to Defined Benefit Plan (55.3 ) (5.0 ) — Increase in Value of Equity Securities at Fair Value (1.6 ) (1.4 ) — Net Realized (Gains) Losses on Sales of Investments (0.3 ) 0.7 (0.6 ) Loss from Early Extinguishment of Debt 5.8 — — Other, Net 9.8 29.6 0.7 Net Cash Provided by Operating Activities 172.5 105.8 101.5 Investing Activities: Capital Contributed to Subsidiaries (83.0 ) (20.0 ) — Capital Distribution from Subsidiary 85.0 176.0 — Sales, Paydowns and Maturities of Fixed Maturities 12.7 (0.2 ) 45.7 Purchases of Equity Securities (48.9 ) (2.3 ) — Sales of Equity Securities 15.3 67.5 — Sales of Fair Value Option Investments — — 42.2 Purchases of Fair Value Option Investments — — (7.0 ) Acquisition of Business — (564.6 ) — Change in Short-term Investments (23.3 ) 253.4 15.6 Net Cash Provided (Used) by Investing Activities (42.2 ) (90.2 ) 96.5 Financing Activities: Notes Payable Proceeds: Net Proceeds from Issuance of Debt 49.9 249.4 200.2 Repayments of Debt (185.0 ) (215.0 ) (360.0 ) Proceeds from Issuance of Common Stock, Net of Transaction Costs 127.5 — — Cash Dividends Paid (67.8 ) (56.4 ) (49.5 ) Proceeds from Shares Issued under Employee Stock Purchase Plan 1.6 — — Cash Exercise of Stock Options 2.4 0.9 4.0 Net Cash Used by Financing Activities (71.4 ) (21.1 ) (205.3 ) Increase (Decrease) in Cash 58.9 (5.5 ) (7.3 ) Cash, Beginning of Year 2.9 8.4 15.7 Cash, End of Year $ 61.8 $ 2.9 $ 8.4 See Accompanying Report of Independent Registered Public Accounting Firm. KEMPER CORPORATION Schedule II (Continued) - Financial Information of Kemper Corporation Notes to Financial Information (Dollars in Millions) NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The financial information of Kemper Corporation (“Kemper” or the “Parent Company”) should be read in conjunction with the Consolidated Financial Statements and Notes thereto included in Item 8 of this Form 10-K. Kemper’s subsidiaries are accounted for using the equity method of accounting. Equity in net income of these subsidiaries is presented on the Statements of Operations as Equity in Net Income of Subsidiaries. NOTE 2. GUARANTEES On November 30, 2018 Kemper executed a guarantee to fully and unconditionally guarantee the payment and performance obligations of the 5.0% Senior Notes due September 19, 2022 of Infinity Property and Casualty Corporation, a wholly owned subsidiary of Kemper. NOTE 3. SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION Kemper did no t receive any non-cash dividends from subsidiaries no r make any non-cash capital contributions in 2019 . Kemper received non-cash dividends from subsidiaries, in the form of invested assets, of $574 million in 2018 . Kemper made non-cash capital contributions, in the form of invested assets, of $350 million in 2018 . NOTE 4. LEASES Kemper leases certain office space for its current and former corporate headquarters under non-cancelable operating leases. The following table presents operating lease ROU assets and lease liabilities at December 31, 2019. DOLLARS IN MILLIONS 2019 Operating Lease Right-of-Use Assets $ 18.6 Operating Lease Liabilities 31.3 Supplemental cash flow information related to Kemper’s operating leases for the year-ended December 31, 2019 follows. DOLLARS IN MILLIONS 2019 Operating Cash Flows from Operating Leases (Fixed Payments) $ 1.2 Operating Cash Flows from Operating Leases (Liability Reduction) 1.0 Right-of-Use Assets Obtained in Exchange for New Operating Lease Liabilities 7.9 Significant judgments and assumptions for determining lease asset and liability as December 31, 2019 are presented below. Weighted-average Remaining Lease Term - Operating Leases 13.0 years Weighted-average Discount Rate - Operating Leases 4.0 % NOTE 4. LEASES (Continued) Kemper’s leases do not provide an implicit rate. Accordingly, Kemper uses its incremental borrowing rate based on the information available at the commencement date in determining the present value of its lease payments. Future minimum operating lease payments at December 31, 2019 were: DOLLARS IN MILLIONS Operating Leases 2020 $ 2.1 2021 3.5 2022 3.7 2023 3.5 2024 2.5 2025 and Thereafter 25.6 Total Future Payments $ 40.9 Less Discount 9.6 Present Value of Minimum Lease Payments $ 31.3 |
Schedule 3 - Supplementary Insu
Schedule 3 - Supplementary Insurance Information | 12 Months Ended |
Dec. 31, 2019 | |
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Abstract] | |
Supplementary Insurance Information | KEMPER CORPORATION AND SUBSIDIARIES SUPPLEMENTARY INSURANCE INFORMATION (Dollars in Millions) Year Ended Dec 31, At December 31 Earned Premiums Premiums Written Other Income Net Investment Income Insurance Claims and Policy- holders’ Benefits Amortization of Deferred Policy Acquisition Costs Other Insurance Expenses Deferred Policy Acquisition Costs Insurance Reserves Unearned Premiums 2019 Specialty Property & Casualty Insurance $ 3,078.4 $ 3,211.3 $ 7.0 $ 107.5 $ 2,278.9 $ 224.9 $ 330.7 $ 161.6 $ 1,551.0 $ 1,158.0 Preferred Property & Casualty Insurance 750.3 739.3 — 44.1 508.8 120.1 113.2 57.7 388.5 363.4 Life & Health Insurance (1) 643.7 N/A 8.5 206.4 402.7 63.3 270.7 318.4 3,505.3 24.1 Other — N/A 20.0 6.3 (2.1 ) — (103.2 ) — 27.0 — Total $ 4,472.4 N/A $ 35.5 $ 364.3 $ 3,188.3 $ 408.3 $ 611.4 $ 537.7 $ 5,471.8 $ 1,545.5 2018 Specialty Property & Casualty Insurance $ 2,027.4 $ 2,067.4 $ 2.4 $ 63.4 $ 1,523.8 $ 202.0 $ 219.7 $ 121.4 $ 1,387.0 $ 1,025.0 Preferred Property & Casualty Insurance 730.7 748.8 — 61.8 538.4 117.2 108.3 58.4 452.9 374.3 Life & Health Insurance (1) 626.3 N/A 4.0 210.9 404.2 57.9 263.2 290.2 3,496.3 25.0 Other — N/A 35.8 4.8 0.1 — (67.8 ) — 30.6 — Total $ 3,384.4 N/A $ 42.2 $ 340.9 $ 2,466.5 $ 377.1 $ 523.4 $ 470.0 $ 5,366.8 $ 1,424.3 2017 Specialty Property & Casualty Insurance $ 1,005.7 $ 1,043.5 $ 1.1 $ 39.2 $ 800.5 $ 150.2 $ 14.8 Preferred Property & Casualty Insurance 730.3 726.1 — 58.9 649.5 114.6 103.2 Life & Health Insurance (1) 614.0 N/A 2.6 223.2 387.4 53.5 258.7 Other — N/A 0.3 5.9 — — (50.7 ) Total $ 2,350.0 N/A $ 4.0 $ 327.2 $ 1,837.4 $ 318.3 $ 326.0 (1) The Company’s Life & Health Insurance employee-agents also market certain property and casualty insurance products under common management. Accordingly, the Company includes the results of these property and casualty insurance products in its Life & Health Insurance segment. See Accompanying Report of Independent Registered Public Accounting Firm. |
Schedule 4 - Reinsurance Schedu
Schedule 4 - Reinsurance Schedule | 12 Months Ended |
Dec. 31, 2019 | |
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Abstract] | |
Reinsurance Schedule | KEMPER CORPORATION REINSURANCE SCHEDULE FOR THE YEARS ENDED DECEMBER 31, 2019 , 2018 AND 2017 (Dollars in Millions) Gross Amount Ceded to Other Companies Assumed from Other Companies Net Amount Percentage of Amount Assumed to Net Year Ended December 31, 2019 Life Insurance in Force $ 19,479.9 $ 411.6 $ 162.8 $ 19,231.1 0.8 % Premiums: Life Insurance $ 383.6 $ 1.2 $ 0.9 $ 383.3 0.2 % Accident and Health Insurance 188.5 1.7 5.3 192.1 2.8 % Property and Liability Insurance 3,835.4 24.5 86.1 3,897.0 2.2 % Total Premiums $ 4,407.5 $ 27.4 $ 92.3 $ 4,472.4 2.1 % Year Ended December 31, 2018 Life Insurance in Force $ 19,435.1 $ 436.4 $ 172.7 $ 19,171.4 0.9 % Premiums: Life Insurance $ 378.2 $ 1.2 $ 1.0 $ 378.0 0.3 % Accident and Health Insurance 174.3 1.7 5.3 177.9 3.0 % Property and Liability Insurance 2,778.3 28.7 78.9 2,828.5 2.8 % Total Premiums $ 3,330.8 $ 31.6 $ 85.2 $ 3,384.4 2.5 % Year Ended December 31, 2017 Life Insurance in Force $ 19,208.7 $ 455.2 $ 184.0 $ 18,937.5 1.0 % Premiums: Life Insurance $ 366.8 $ 1.4 $ 1.1 $ 366.5 0.3 % Accident and Health Insurance 171.0 1.5 5.4 174.9 3.1 % Property and Liability Insurance 1,757.5 15.3 66.4 1,808.6 3.7 % Total Premiums $ 2,295.3 $ 18.2 $ 72.9 $ 2,350.0 3.1 % See Accompanying Report of Independent Registered Public Accounting Firm. |
Summary of Accounting Policie_2
Summary of Accounting Policies and Accounting Changes (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires the use of estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ materially from those estimates and assumptions. The fair values of the Company’s Investments in Fixed Maturities, Investments in Convertible Securities at Fair Value, Investments in Equity Securities at Fair Value and Debt are estimated using a hierarchical framework which prioritizes and ranks market price observability. The carrying amounts reported in the Consolidated Balance Sheets approximate fair value for Cash, Short-term Investments and certain other assets and other liabilities because of their short-term nature. The actual value at which financial instruments could be sold or settled with a willing buyer or seller may differ from estimated fair values depending on a number of factors, including, but not limited to, current and future economic conditions, the quantity sold or settled, the presence of an active market and the availability of a willing buyer or seller. The process of estimating and establishing reserves for losses and loss adjustment expenses ("LAE") for property and casualty insurance is inherently uncertain, and the actual ultimate net cost of known and unknown claims may vary materially from the estimated amounts reserved. The reserving process is particularly imprecise for claims involving long-tailed exposures, which may not be discovered or reported until years after the insurance policy period has ended. Management considers a variety of factors, including, but not limited to, past claims experience, current claim trends and relevant legal, economic and social conditions, in estimating reserves. A change in any one or more factors is likely to result in the ultimate net claim costs differing from the estimated reserve. Changes in such estimates may be material and would be recognized in the Consolidated Financial Statements when such estimates change. The process of determining whether an asset is impaired or recoverable relies on projections of future cash flows, operating results and market conditions. Projections are inherently uncertain, and, accordingly, actual future cash flows may differ materially from projected cash flows. As a result, the Company’s assessment of the impairment of long-lived assets is susceptible to the risk inherent in making such projections. |
Investments | Investments Investments in Fixed Maturities include bonds, notes and redeemable preferred stocks. Investments in Fixed Maturities are classified as available for sale and reported at fair value. Net Investment Income, including amortization of purchased premiums and accretion of market discounts, on Investments in Fixed Maturities is recognized as interest over the period that it is earned using the effective yield method. Unrealized appreciation or depreciation, net of applicable deferred income taxes, on fixed maturities classified as available for sale is reported in Accumulated Other Comprehensive Income (“AOCI”) included in Shareholders’ Equity. Investments in Convertible Securities include fixed maturities with equity conversion features. The Company has elected the fair value option method of accounting for investments in Convertible Securities and records Convertible Securities at fair value on the Consolidated Balance Sheets. Changes in fair value of Convertible Securities are recorded in the Consolidated Statements of Income during the period such changes occur. Equity investments include common stocks, non-redeemable preferred stocks, exchange traded funds, money market mutual funds and limited liability companies and investment partnerships in which the Company’s interests are deemed minor. Equity investments with readily determinable fair values are recorded as Equity Securities at Fair Value on the Consolidated Balance Sheets. Effective January 1, 2018, changes in the fair value of such equity securities are reported in the Consolidated Statements of Income. Prior to January 1, 2018, changes in the fair values of such equity securities were reported in AOCI. Dividend income on investments in common and non-redeemable preferred stocks is recognized on the ex-dividend date. The Company NOTE 2. SUMMARY OF ACCOUNTING POLICIES AND ACCOUNTING CHANGES (Continued) holds certain equity investments without readily determinable fair values at cost, less impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or similar investment of the same issuer on the Consolidated Balance Sheets as Equity Securities at Modified Cost. Changes in the carrying value of Modified Cost investments due to observable price changes are recorded as Income (Loss) from Change in Fair Value of Equity and Convertible Securities. Equity Method Limited Liability Investments include investments in limited liability investment companies and limited partnerships in which the Company’s interests are not deemed minor and are accounted for under the equity method of accounting. Short-term Investments include certificates of deposit and other fixed maturities that mature within one year from the date of purchase, U.S. Treasury bills, money market mutual funds and overnight interest bearing accounts. Short-term Investments are reported at cost, which approximates fair value. Other Investments primarily include loans to policyholders, real estate and mortgage loans. Loans to policyholders are carried at unpaid principal balance. Real estate is carried at cost, net of accumulated depreciation. Real estate is depreciated over the estimated useful life of the asset using the straight-line method of depreciation. Real estate is evaluated for impairment when events or circumstances indicate the carrying value may not be recoverable. An impairment loss on real estate is recognized when the carrying value exceeds the sum of undiscounted projected future cash flows as well as the fair value, or, in the case of a property classified as held for sale, when the carrying value exceeds the fair value, net of costs to sell. Mortgage loans are carried at amortized cost, net of a reserve for expected credit losses. Gains and losses on sales of investments are computed on the specific identification method and are reported in the Consolidated Statements of Income in the period in which the sales occur. The Company regularly reviews its investment portfolio for factors that may indicate that a decline in fair value of an investment is other than temporary. Losses are computed on the specific identification method and reported in the Consolidated Statements of Income in the period that the decline is determined to be other than temporary. The portion of an impairment of an investment in a fixed maturity attributed to a credit loss is reported in Net Impairment Losses Recognized in Earnings in the Consolidated Statements of Income, with the portion of the impairment that is not attributed to a credit loss reported in AOCI. |
Fair Value Measurements | Fair Value Measurements The Company uses a hierarchical framework which prioritizes and ranks the market observability of inputs used in fair value measurements. Market price observability is affected by a number of factors, including the type of asset or liability and the characteristics specific to the asset or liability being measured. Assets and liabilities with readily available, active, quoted market prices or for which fair value can be measured from actively quoted prices generally are deemed to have a higher degree of market price observability and a lesser degree of judgment used in measuring fair value. The Company classifies the inputs used to measure fair value into one of three levels as follows: • Level 1 — Quoted prices in an active market for identical assets or liabilities; • Level 2 — Observable inputs other than Level 1, quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, and model-derived prices whose inputs are observable or whose significant value drivers are observable; and • Level 3 — Significant unobservable inputs for the asset or liability being measured. Observable inputs are based on market data obtained from independent sources, while unobservable inputs are based on the Company’s market assumptions. Unobservable inputs require significant management judgment or estimation. In some cases, the inputs used to measure an asset or liability may fall into different levels of the fair value hierarchy. In those cases, the fair value measurement is categorized in its entirety in the same level of the fair value hierarchy as the lowest level of input that is significant to the entire measurement. Such determination requires significant management judgment. |
Deferred Policy Acquisition Costs | Deferred Policy Acquisition Costs Costs directly associated with the successful acquisition of business, principally commissions and certain premium taxes and policy issuance costs, are deferred. Costs deferred on property and casualty insurance contracts and short duration health NOTE 2. SUMMARY OF ACCOUNTING POLICIES AND ACCOUNTING CHANGES (Continued) insurance contracts are amortized over the period in which premiums are earned. Costs deferred on traditional life insurance products and other long-duration insurance contracts are primarily amortized over the anticipated premium-paying period of the related policies in proportion to the ratio of the annual premiums to the total premiums anticipated, which is estimated using the same assumptions used in calculating policy reserves. |
Goodwill | Goodwill The cost of an acquired entity over the fair value of net assets acquired is reported as Goodwill. Goodwill is not amortized, but rather is tested for recoverability annually or when certain triggering events require testing. |
Insurance Reserves | Insurance Reserves Reserves for losses and LAE on property and casualty insurance coverage and health insurance coverage represent the estimated claim cost and loss adjustment expense necessary to cover the ultimate net cost of investigating and settling all losses incurred and unpaid at the end of any given accounting period. Such estimates are based on individual case estimates for reported claims and estimates for incurred but not reported (“IBNR”) losses, including expected development on reported claims. These estimates are adjusted in the aggregate for ultimate loss expectations based on historical experience patterns and current economic trends, with any change in the estimated ultimate liabilities being reported in the Consolidated Statements of Income in the period of change. Changes in such estimates may be material. For traditional life insurance products, the reserves for future policy benefits are estimated on the net level premium method using assumptions as of the issue date for mortality, interest, policy lapses and expenses, including provisions for adverse deviations. These assumptions vary by such characteristics as plan, age at issue and policy duration. Mortality assumptions are based on the Company’s historical experience and industry standards. Interest rate assumptions principally range from 3% to 7% . Lapse rate assumptions are based on actual and industry experience. Insurance Reserves for life insurance products are comprised of reserves for future policy benefits plus an estimate of the Company’s liability for unpaid life insurance claims and claims adjustment expenses, which includes an estimate for IBNR life insurance claims. Prior to 2016, except when required by applicable law, the Company did not utilize the database of reported deaths maintained by the Social Security Administration or any other comparable database (a “Death Master File” or “DMF”) in its operations, including to determine its IBNR liability for life insurance products. Instead of using such a database, the Company calculated its IBNR liability for life insurance products using Company-specific historical information, which included analyzing average paid claims and the average lag between date of death and the date reported to the Company for claims for which proof of death had been provided. In 2016, the Company initiated a voluntary enhancement of its claims handling procedures for its life insurance policies. The Company is now utilizing a DMF to identify potential situations where the Company has yet to be notified of an insured’s death and, as appropriate, initiating an outreach process to identify and contact beneficiaries and settle claims. Policyholders’ Benefits and Incurred Losses and Loss Adjustment Expenses for the year ended December 31, 2016 included a charge of $77.8 million to recognize the initial impact of using a DMF in the Company’s operations, including to determine its IBNR liability for unpaid claims and claims adjustment expenses for life insurance products. The Company reduced its estimate of the initial impact of using death verification databases by $21.0 million for the year ended December 31, 2019 . |
Policyholder Contract Liabilities | Policyholder Contract Liabilities Policyholder contract liabilities include Federal Home Loan Bank (“FHLB”) funding agreements used for spread lending purposes and universal life-type policyholder contracts and are stated at account balances. |
Other Receivables | Other Receivables Other Receivables primarily include reinsurance recoverables and accrued investment income. Reinsurance Recoverables were $122.6 million and $158.3 million at December 31, 2019 and 2018 , respectively. Accrued Investment Income was $78.7 million and $77.9 million at December 31, 2019 and 2018 , respectively. |
Other Assets | Other Assets Other Assets primarily include property and equipment, internal use software, right-of-use assets, insurance licenses acquired in business combinations, the value of other intangible assets acquired, corporate-owned life insurance (“COLI”) and prepaid expenses. Property and equipment is depreciated over the useful lives of the assets, generally using the straight-line or double declining balance methods of depreciation depending on the asset involved. Internal use software is amortized over the useful life of the asset using the straight-line method of amortization and is evaluated for recoverability upon identification of NOTE 2. SUMMARY OF ACCOUNTING POLICIES AND ACCOUNTING CHANGES (Continued) impairment indicators. Insurance licenses acquired in business combinations and other indefinite life intangibles are not amortized, but rather tested periodically for recoverability. COLI is reported at cash surrender value with changes due to cost of insurance and investment experience reported in Other Income in the Consolidated Statements of Income. COLI was $217.0 million and $59.3 million at December 31, 2019 and 2018 , respectively. The Company accounts for the value of business acquired (“VOBA”) based on actuarial estimates of the present value of future cash flows embedded in insurance in force as of an acquisition date. VOBA was $24.1 million and $30.2 million at December 31, 2019 and 2018 , respectively. VOBA is amortized over the expected profit emergence period of the policies in force as of the acquisition date. The Company evaluates VOBA assets for recoverability annually. The Company accounts for the future profits embedded in customer relationships (“Customer Relationships”) acquired based on the present value of estimated future cash flows from such relationships. Customer Relationships was $4.3 million and $6.7 million at December 31, 2019 and 2018 , respectively, and are amortized on a straight-line basis over the estimated useful life of the relationship. Customer Relationships are tested for recoverability using undiscounted projections of future cash flows and written down to estimated fair value if the carrying value exceeds the sum of such projections of undiscounted cash flows. The Company accounts for the present value of the future profits embedded in broker or agent relationships acquired (“Agent Relationships”) based on the present value of estimated future cash flows from such acquired relationships or, using the cost recovery method, which estimates the ultimate cost to build a comparable distribution network. Agent Relationships was $62.5 million and $68.0 million at December 31, 2019 and 2018 , respectively, and are amortized on a straight-line basis over the estimated useful life of the relationship. Agent Relationships are tested for recoverability using undiscounted projections of future cash flows and written down to estimated fair value if the carrying value exceeds the sum of such projections of undiscounted cash flows. |
Accrued Expenses and Other Liabilities | Accrued Expenses and Other Liabilities Accrued Expenses and Other Liabilities primarily include drafts payable, accrued salaries and commissions, pension benefits, postretirement medical benefits, lease liability and accrued taxes, licenses and fees. |
Recognition of Earned Premiums and Related Expenses | Recognition of Earned Premiums and Related Expenses Property and casualty insurance and short duration health insurance premiums are deferred when written and recognized and earned ratably over the periods to which the premiums relate. Unearned Premiums represent the portion of the premiums written related to the unexpired portion of policies in force which has been deferred and is reported as a liability. The Company performs a premium deficiency analysis typically at a product line level, namely automobile insurance, homeowners insurance and other insurance, which is consistent with the manner in which the Company acquires and services policies and measures profitability. Anticipated investment income is excluded from such analysis. A premium deficiency is recognized when the sum of expected claim costs, claim adjustment expenses, unamortized deferred policy acquisition costs and maintenance costs exceeds the related unearned premiums by first reducing related deferred policy acquisition costs to an amount, but not below zero, at which the premium deficiency would not exist. If a premium deficiency remains after first reducing deferred policy acquisition costs, a premium deficiency reserve is established and reported as a liability in the Company’s financial statements. Traditional life insurance premiums are recognized as revenue when due. Policyholders’ benefits are associated with related premiums to result in recognition of profits over the periods for which the benefits are provided using the net level premium method. Policyholders’ Benefits and Incurred Losses and Loss Adjustment Expenses include provisions for future policy benefits under life and certain accident and health insurance contracts and provisions for reported claims, estimates for IBNR claims and loss adjustment expenses. Benefit payments in excess of policy account balances are expensed. |
Recognition of Earned Premiums and Related Expenses | Policyholders’ Benefits and Incurred Losses and Loss Adjustment Expenses include provisions for future policy benefits under life and certain accident and health insurance contracts and provisions for reported claims, estimates for IBNR claims and loss adjustment expenses. Benefit payments in excess of policy account balances are expensed. |
Reinsurance | Reinsurance In the normal course of business, Kemper’s insurance subsidiaries reinsure certain risks above certain retention levels with other insurance enterprises. These reinsurance agreements do not relieve Kemper’s insurance subsidiaries of their legal obligations to the policyholder. Amounts recoverable from reinsurers are included in Other Receivables. Gains related to long-duration reinsurance contracts are deferred and amortized over the life of the underlying reinsured policies. Losses related to long-duration reinsurance contracts are recognized immediately. Any gain or loss associated with reinsurance agreements for which Kemper’s insurance subsidiaries have been legally relieved of their obligations to the policyholder is recognized in the period of relief. |
Income Taxes | Income Taxes Deferred income tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred income tax assets and liabilities are measured using enacted tax rates in effect for the year in which those temporary differences are expected to be recovered or settled. A valuation allowance, if any, is maintained for the portion of deferred income tax assets that the Company does not expect to recover. Increases, if any, in the valuation allowance for deferred income tax assets are recognized as income tax expense. Decreases, if any, in the valuation allowance for deferred income tax assets are generally recognized as income tax benefit. The effect on deferred income tax assets and liabilities of a change in tax law including a change in tax rates is recognized in income from continuing operations in the period in which the change is enacted. The Company reports a liability for unrecognized tax benefits, if any, resulting from uncertain tax positions taken, or expected to be taken, in an income tax return, if any. The Company recognizes interest and penalties, if any, related to unrecognized tax benefits in income tax expense. |
Discontinued Operations | Discontinued Operations In 2008, the Company sold its Unitrin Business Insurance operations and retained certain liabilities for unpaid insured losses that occurred prior to the date of the sale. Changes in the Company’s estimate of such retained liabilities after the sale are reported in Income from Discontinued Operations. |
Change in Accounting and Adoption of New Accounting Standards | Change in Accounting and Adoption of New Accounting Standards Accounting Standards Adopted in 2019 Effective January 1, 2019, the Company adopted Financial Accounting Standards Board (“FASB”) Accounting Standards Update (“ASU”) 2016-02, Leases—(Topic 842). ASU 2016-02 introduced a lessee model that requires the recognition of a right-of-use (“ROU”) asset and a lease liability for all leases with terms greater than twelve months. The Company adopted ASU 2016-02 using the modified retrospective method at the beginning of the period of the adoption and elected the permitted practical expedients to not reassess whether any expired or existing contracts contain leases, the lease classification for any expired or existing leases and initial direct costs for any existing leases. The adoption of ASU 2016-02 had no impact on the Company’s Shareholders’ Equity as of January 1, 2019, but resulted in the establishment of a ROU asset of $66.5 million , a lease liability of $82.5 million and an adjustment to deferred rent liability of $16.0 million . The ROU asset and related liabilities were included in Other Assets and Accrued Expenses and Other Liabilities, respectively, on the Consolidated Balance Sheet at December 31, 2019 . In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Derivatives and Hedging Activities. ASU 2017-12 aligns an entity’s risk management activities and financial reporting for hedging relationships through changes to both the designation and measurement guidance for qualifying hedging relationships and the presentation of hedge results. The amendments in ASU 2017-12 expand and refine hedge accounting for both nonfinancial and financial risk components and align the recognition and presentation of the effects of the hedging instrument and the hedged item in the financial statements. Furthermore, the amendments make certain targeted improvements to simplify the application of hedge accounting guidance and ease the administration of hedge documentation requirements and assessing hedge effectiveness. ASU 2017-12 is effective for annual periods beginning after December 15, 2018 and interim periods. The impact of adoption of ASU 2017-12 on the Company’s consolidated financial position was not material. NOTE 2. SUMMARY OF ACCOUNTING POLICIES AND ACCOUNTING CHANGES (Continued) In August 2018, the SEC issued Final Rule Release No. 33-10532, “ Disclosure Update and Simplification, ” which made a number of changes meant to simplify interim disclosures. The new rule required a presentation of changes in stockholders’ equity in the form of a reconciliation, either as a separate financial statement or in the notes to the financial statements, for the current and comparative year-to-date interim periods. In July 2019, the FASB issued ASU 2019-07, “Codification Updates to SEC Sections - Amendments to SEC Paragraphs Pursuant to SEC Final Rule Releases No. 33-10532, Disclosure Update and Simplification, and Nos. 33-10231 and 33-10442, Investment Company Reporting Modernization and Miscellaneous Updates (SEC Update) .” ASU 2019-07 codifies Final Rule Release No. 33-10532 and was effective immediately. The additional elements of this release did not have a material impact on the Company’s overall Consolidated Financial Statements. Accounting Standards Not Yet Adopted In June 2016, the FASB issued ASU 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. ASU 2016-13 replaces the existing incurred loss impairment model with an expected credit loss impairment model. The expected credit loss impairment model requires the entity to recognize its estimate of expected credit losses for affected financial assets using an allowance for credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. The amendments in this ASU require a financial asset (or a group of financial assets) measured at amortized cost basis to be presented at the net amount expected to be collected. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of the financial asset(s) to present the net carrying value at the amount expected to be collected. The income statement includes the measurement of credit losses for newly recognized financial assets, as well as the expected increases or decreases of expected credit losses that have occurred during the period. Credit losses on available-for-sale debt securities are measured in a manner similar to current GAAP, although ASU 2016-13 requires that they be presented as an allowance rather than as a write-down of the amortized cost. In situations where the estimate of credit loss on an available-for-sale debt security declines, entities will be able to record a reversal of the allowance to income in the current period, which was prohibited prior to the adoption of ASU 2016-13. ASU 2016-13 is effective for annual periods beginning after December 15, 2019 and interim periods within those annual periods. The impact of the initial adoption of ASU 2016-13 is not expected to be material. In August 2018, the FASB issued ASU 2018-12, Financial Services—Insurance (Topic 944): Targeted Improvements to Accounting for Long-Duration Contracts . ASU 2018-12 amends the accounting model for certain long-duration insurance contracts and requires the insurer to provide additional disclosures in annual and interim reporting periods. ASU 2018-12 is effective for fiscal years beginning January 1, 2022. The amendments in ASU 2018-12 are intended to improve measurement of the liability for future policy benefits related to nonparticipating traditional and limited-payment contracts, measurement and presentation of market risk benefits, amortization of deferred acquisition costs, and enhance presentation and disclosures. The Company is currently evaluating the impact of this guidance on its financial statements. In April 2019, the FASB issued ASU 2019-04, Codification Improvements to Topic 326, Financial Instruments—Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments. ASU 2019-04 clarifies certain aspects of accounting for credit losses, hedging activities, and financial instruments, previously addressed by ASU 2016-13, Measurement of Credit Losses on Financial Instruments, ASU 2017-12, Targeted Improvements to Derivatives and Hedging Activities, and ASU 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities. The Company adopted ASU 2017-12 in the first quarter of 2019. Accordingly, the amendments in ASU 2019-04 related to clarifications on accounting for hedging activities are effective for the Company in the first quarter of 2020. The amendments of ASU 2019-04 related to ASU 2016-01 and ASU 2016-13 are effective for annual periods beginning after December 15, 2019, and interim periods within those annual periods. The impact of the initial adoption of ASU 2019-04 is not expected to be material. In May 2019, the FASB issued ASU 2019-05, Financial Instruments—Credit Losses (Topic 326): Targeted Transition Relief. ASU 2019-05 provides transition relief for entities adopting the credit loss standard, ASU 2016-13. Specifically ASU 2019-05 amends ASU 2016-13 to allow companies to irrevocably elect, upon adoption of ASU 2016-13, the fair value option for financial instruments that are: (i) within the scope of the credit loss guidance in Accounting Standards Codification (“ASC”) Topic 326, Financial Instruments—Credit Losses ; (ii) were previously recorded at amortized cost; (iii) are eligible for the fair value option under ASC Topic 825, Financial Instruments ; and (iv) are not held to maturity debt. ASU 2019-05 is effective for annual periods beginning after December 15, 2019 and interim periods within those annual periods. The Company does not intend to elect the fair value option upon adoption of ASU 2016-13 for financial instruments outlined above. NOTE 2. SUMMARY OF ACCOUNTING POLICIES AND ACCOUNTING CHANGES (Continued) In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes . ASU 2019-12 is intended to simplify accounting for income taxes by eliminating certain exceptions to the guidance in ASC Topic 740 related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period, and the recognition of deferred tax liabilities for outside basis differences. ASU 2019-12 also simplifies aspects of the accounting for franchise taxes and enacted changes in tax laws or rates and clarifies the accounting for transactions that result in a step-up in the tax basis of goodwill. Further, ASU 2019-12 clarifies that single-member limited liability companies and similar disregarded entities that are not subject to income tax are not required to recognize an allocation of consolidated income tax expense in their separate financial statements, but they could elect to do so. ASU 2019-12 is effective for annual periods beginning after December 15, 2020 and interim periods within those annual periods. The Company is currently evaluating the impact of this guidance on its financial statements. The Company has adopted all other recently issued accounting pronouncements with effective dates prior to January 1, 2020. Other than the adoption of ASU 2016-02, Leases—(Topic 842), there were no adoptions of such accounting pronouncements during the year ended December 31, 2019 that had a material impact on the Company’s Consolidated Financial Statements. With the exception of ASU 2018-12, Financial Services—Insurance (Topic 944):Targeted Improvements to Accounting for Long-Duration Contracts, the Company does not expect the adoption of recently issued accounting pronouncements with effective dates after December 31, 2019 to have a material impact on the Company’s financial statements and/or disclosures. |
Acquisition of Business (Tables
Acquisition of Business (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Business Combinations [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | Based on the Company’s final allocation of the purchase price, the fair value of the assets acquired and liabilities assumed were: DOLLARS IN MILLIONS Investments $ 1,569.3 Short-term Investments at Cost which Approximates Fair Value Investments 98.8 Cash 4.0 Receivables from Policyholders 583.4 Other Receivables 31.7 Value of Intangible Assets Acquired (Reported in Other Assets) 262.7 Current Income Tax Assets 1.0 Goodwill 1 791.0 Other Assets 102.1 Property and Casualty Insurance Reserves (717.2 ) Unearned Premiums (715.6 ) Debt (282.1 ) Deferred Income Tax Liabilities (10.8 ) Accrued Expenses and Other Liabilities (169.6 ) Total Purchase Price $ 1,548.7 1 Non-deductible for tax-purposes. |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Debt Securities, Available-for-sale [Line Items] | |
Schedule of Unrealized Loss on Investments | An aging of unrealized losses on the Company’s Investments in Fixed Maturities at December 31, 2019 is presented below. DOLLARS IN MILLIONS Less Than 12 Months 12 Months or Longer Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Fixed Maturities: U.S. Government and Government Agencies and Authorities $ 118.5 $ (1.3 ) $ 5.1 $ — $ 123.6 $ (1.3 ) States and Political Subdivisions 63.0 (0.7 ) 5.4 (0.4 ) 68.4 (1.1 ) Foreign Governments 1.0 (0.3 ) 3.1 (1.3 ) 4.1 (1.6 ) Corporate Securities: Bonds and Notes 160.0 (2.1 ) 70.7 (5.0 ) 230.7 (7.1 ) Redeemable Preferred Stocks 5.5 (0.1 ) — — 5.5 (0.1 ) Collateralized Loan Obligations 95.5 (1.9 ) 355.6 (6.6 ) 451.1 (8.5 ) Other Mortgage- and Asset-backed 72.8 (1.1 ) — — 72.8 (1.1 ) Total Fixed Maturities 516.3 (7.5 ) 439.9 (13.3 ) 956.2 (20.8 ) An aging of unrealized losses on the Company’s Investments in Fixed Maturities at December 31, 2018 is presented below. DOLLARS IN MILLIONS Less Than 12 Months 12 Months or Longer Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Fixed Maturities: U.S. Government and Government Agencies and Authorities $ 401.1 $ (7.6 ) $ 79.0 $ (7.4 ) $ 480.1 $ (15.0 ) States and Political Subdivisions 299.4 (5.0 ) 102.6 (3.6 ) 402.0 (8.6 ) Foreign Governments 4.9 (0.6 ) — — 4.9 (0.6 ) Corporate Securities: Bonds and Notes 1,326.0 (38.2 ) 116.8 (10.9 ) 1,442.8 (49.1 ) Collateralized Loan Obligations 439.2 (13.2 ) — — 439.2 (13.2 ) Other Mortgage- and Asset-backed 0.2 — 4.5 (0.1 ) 4.7 (0.1 ) Total Fixed Maturities $ 2,470.8 $ (64.6 ) $ 302.9 $ (22.0 ) $ 2,773.7 $ (86.6 ) |
Other than Temporary Impairment, Credit Losses Recognized in Earnings | The following table sets forth the pre-tax amount of other-than-temporary impairments (“OTTI”) credit losses, recognized in Retained Earnings for Investments in Fixed Maturities held by the Company as of the beginning and end of the periods presented for which a portion of the OTTI loss related to factors other than credit has been recognized in AOCI, and the corresponding changes in such amounts. DOLLARS IN MILLIONS 2019 2018 2017 Cumulative Balance of Pre-tax Credit Losses Recognized in Retained Earnings at Beginning of Year $ 1.1 $ 1.6 $ 1.4 Pre-tax Credit Losses on Fixed Maturities without Pre-tax Credit Losses Included in Cumulative Balance at Beginning of Year 0.2 — 1.2 Reductions for Change in Impairment Status: From Status of Credit Loss to Status of Intent-to-sell or Required-to-sell — (0.5 ) (0.7 ) Reductions for Investments Sold During Year (0.1 ) — (0.3 ) Cumulative Balance of Pre-tax Credit Losses Recognized in Retained Earnings at End of Year $ 1.2 $ 1.1 $ 1.6 The components of Net Impairment Losses Recognized in Earnings reported in the Consolidated Statements of Income for the years ended December 31, 2019 , 2018 and 2017 were: DOLLARS IN MILLIONS 2019 2018 2017 Fixed Maturities $ (13.3 ) $ (2.0 ) $ (12.1 ) Equity Securities (0.5 ) (2.5 ) (2.2 ) Net Impairment Losses Recognized in Earnings $ (13.8 ) $ (4.5 ) $ (14.3 ) |
Schedule of Other Investments | The carrying values of the Company’s Other Investments at December 31, 2019 and 2018 were: DOLLARS IN MILLIONS 2019 2018 Loans to Policyholders at Unpaid Principal $ 305.6 $ 300.6 Real Estate at Depreciated Cost 111.4 114.2 Mortgage Loans at Amortized Cost 27.5 — Total $ 444.5 $ 414.8 |
Investments in Fixed Maturities | |
Debt Securities, Available-for-sale [Line Items] | |
Schedule of Available-for-sale Securities Reconciliation | The amortized cost and estimated fair values of the Company’s Investments in Fixed Maturities at December 31, 2018 were: Amortized Cost Gross Unrealized Fair Value DOLLARS IN MILLIONS Gains Losses U.S. Government and Government Agencies and Authorities $ 865.9 $ 14.8 $ (15.0 ) $ 865.7 States and Political Subdivisions 1,553.7 74.0 (8.6 ) 1,619.1 Foreign Governments 6.5 — (0.6 ) 5.9 Corporate Securities: Bonds and Notes 3,307.8 135.1 (49.1 ) 3,393.8 Collateralized Loan Obligations 535.7 1.5 (13.2 ) 524.0 Other Mortgage- and Asset-backed 14.9 0.9 (0.1 ) 15.7 Investments in Fixed Maturities $ 6,284.5 $ 226.3 $ (86.6 ) $ 6,424.2 The amortized cost and estimated fair values of the Company’s Investments in Fixed Maturities at December 31, 2019 were: DOLLARS IN MILLIONS Amortized Cost Gross Unrealized Fair Value Gains Losses U.S. Government and Government Agencies and Authorities $ 784.7 $ 32.5 $ (1.3 ) $ 815.9 States and Political Subdivisions 1,386.4 130.5 (1.1 ) 1,515.8 Foreign Governments 17.2 1.2 (1.6 ) 16.8 Corporate Securities: Bonds and Notes 3,465.0 401.8 (7.1 ) 3,859.7 Redeemable Preferred Stocks 6.8 — (0.1 ) 6.7 Collateralized Loan Obligations 624.6 2.1 (8.5 ) 618.2 Other Mortgage- and Asset-backed 88.0 2.1 (1.1 ) 89.0 Investments in Fixed Maturities $ 6,372.7 $ 570.2 $ (20.8 ) $ 6,922.1 |
Investments Classified by Contractual Maturity Date | The amortized cost and estimated fair values of the Company’s Investments in Fixed Maturities at December 31, 2019 by contractual maturity were: DOLLARS IN MILLIONS Amortized Cost Fair Value Due in One Year or Less $ 82.5 $ 85.1 Due after One Year to Five Years 882.3 909.2 Due after Five Years to Ten Years 1,581.7 1,708.9 Due after Ten Years 2,535.3 2,916.6 Mortgage- and Asset-backed Securities Not Due at a Single Maturity Date 1,290.9 1,302.3 Investments in Fixed Maturities $ 6,372.7 $ 6,922.1 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | Goodwill balances by business segment at December 31, 2019 and 2018 were: DOLLARS IN MILLIONS 2019 2018 Specialty Property & Casualty Insurance $ 845.0 $ 843.4 Preferred Property & Casualty Insurance 49.6 49.6 Life & Health Insurance 219.4 219.4 Total $ 1,114.0 $ 1,112.4 |
Schedule of Definite-Life Intangible Assets | Definite and indefinite life intangible assets at December 31, 2019 and 2018 were: DOLLARS IN MILLIONS 2019 2018 Definite Life Intangible Assets: Value of Business Acquired $ 24.1 $ 30.2 Customer Relationships 4.3 6.7 Agent Relationships 62.5 68.0 Trade Names — 7.0 Internal-Use Software 189.7 149.1 Total Definite Life Intangible Assets 280.6 261.0 Indefinite Life Intangible Assets: Trade Names 5.2 5.2 Insurance Licenses 42.6 42.6 Total Indefinite Life Intangible Assets 47.8 47.8 Total Intangible Assets $ 328.4 $ 308.8 |
Schedule of Indefinite-Life Intangible Assets | Definite and indefinite life intangible assets at December 31, 2019 and 2018 were: DOLLARS IN MILLIONS 2019 2018 Definite Life Intangible Assets: Value of Business Acquired $ 24.1 $ 30.2 Customer Relationships 4.3 6.7 Agent Relationships 62.5 68.0 Trade Names — 7.0 Internal-Use Software 189.7 149.1 Total Definite Life Intangible Assets 280.6 261.0 Indefinite Life Intangible Assets: Trade Names 5.2 5.2 Insurance Licenses 42.6 42.6 Total Indefinite Life Intangible Assets 47.8 47.8 Total Intangible Assets $ 328.4 $ 308.8 |
Schedule of Definite-Life Intangible Assets, Future Amortization Expense | The amount of amortization expense expected to be recorded in the next five years for definite life intangible assets is as follows: DOLLARS IN MILLIONS 2020 2021 2022 2023 2024 Definite Life Intangible Assets: Value of Business Acquired $ 4.0 $ 3.1 $ 2.7 $ 2.5 $ 2.4 Customer Relationships 0.9 0.8 0.6 0.5 0.4 Agent Relationships 5.0 5.0 5.0 5.0 5.0 Internal-Use Software 24.1 19.1 17.9 16.5 14.0 Total $ 34.0 $ 28.0 $ 26.2 $ 24.5 $ 21.8 |
Property and Casualty Insuran_2
Property and Casualty Insurance Reserves (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Liability for Future Policy Benefits and Unpaid Claims and Claims Adjustment Expense [Abstract] | |
Short-duration Insurance Contracts, Claims Development | The following tables contain information about incurred and paid claims development as of and for the year ended December 31, 2019 , net of reinsurance and indemnification, as well as cumulative claim frequency and the total of IBNR liabilities, including expected development on reported claims included within the net incurred losses and allocated LAE amounts. The tables are grouped by major product line and, if relevant, coverage. The information about incurred and paid claims development for the years ended December 31, 2015 through 2018 is presented as supplementary information and is unaudited. Specialty Personal Automobile Insurance—Liability 1 DOLLARS IN MILLIONS, EXCEPT CUMULATIVE INCURRED CLAIMS As of December 31, 2019 Incurred Losses and Allocated LAE, Net of Reinsurance For the Years Ended December 31, Total of IBNR Liabilities Plus Expected Development on Reported Claims Cumulative Number of Reported Claims Accident Year 2015 2016 2017 2018 2019 2015 $ 965.1 $ 855.1 $ 965.1 $ 972.3 $ 969.6 $ 8.1 401,025 2016 969.4 1,021.6 1,027.2 1,026.0 22.5 417,016 2017 997.7 999.9 1,004.5 40.6 396,578 2018 1,128.1 1,119.1 93.0 445,229 2019 1,270.7 383.0 447,558 Total 5,389.9 Cumulative Paid Losses and Allocated LAE, Net of Reinsurance For the Years Ended December 31, Accident Year 2015 2016 2017 2018 2019 2015 $ 450.5 $ 794.9 $ 898.9 $ 934.7 $ 954.0 2016 459.7 831.1 943.4 987.7 2017 441.9 808.6 926.7 2018 467.5 903.8 2019 497.2 Total 4,269.4 Outstanding Loss and Allocated LAE Reserves on Accident Years before 2015, Net of Reinsurance 20.4 Loss and Allocated LAE Reserves, Net of Reinsurance $ 1,140.9 1 Table retrospectively includes Alliance United and Infinity’s historical incurred and paid accident year claim information for all periods presented. NOTE 6. PROPERTY AND CASUALTY INSURANCE RESERVES (Continued) Specialty Personal Automobile Insurance—Physical Damage 1 DOLLARS IN MILLIONS, EXCEPT CUMULATIVE INCURRED CLAIMS As of December 31, 2019 Incurred Losses and Allocated LAE, Net of Reinsurance For the Years Ended December 31, Total of IBNR Liabilities Plus Expected Development on Reported Claims Cumulative Number of Reported Claims Accident Year 2015 2016 2017 2018 2019 2015 $ 403.8 $ 407.1 $ 406.7 $ 406.5 $ 406.6 $ 0.9 231,007 2016 462.2 456.9 456.9 457.0 (0.1 ) 246,183 2017 475.6 465.6 465.1 — 251,872 2018 504.9 496.9 (1.6 ) 269,782 2019 574.7 47.5 276,797 Total 2,400.3 Cumulative Paid Losses and Allocated LAE, Net of Reinsurance For the Years Ended December 31, Accident Year 2015 2016 2017 2018 2019 2015 $ 382.4 $ 408.8 $ 406.7 $ 406.4 $ 406.1 2016 436.4 460.2 458.0 457.5 2017 443.0 468.7 466.0 2018 463.6 501.5 2019 525.8 Total 2,356.9 Outstanding Loss and Allocated LAE Reserves on Accident Years before 2015, Net of Reinsurance (1.2 ) Loss and Allocated LAE Reserves, Net of Reinsurance $ 42.2 1 Table retrospectively includes Alliance United and Infinity’s historical incurred and paid accident year claim information for all periods presented. NOTE 6. PROPERTY AND CASUALTY INSURANCE RESERVES (Continued) Commercial Automobile Insurance—Liability 1 DOLLARS IN MILLIONS, EXCEPT CUMULATIVE INCURRED CLAIMS As of December 31, 2019 Incurred Losses and Allocated LAE, Net of Reinsurance For the Years Ended December 31, Total of IBNR Liabilities Plus Expected Development on Reported Claims Cumulative Number of Reported Claims Accident Year 2015 2016 2017 2018 2019 2015 $ 102.5 $ 106.9 $ 112.9 $ 112.3 $ 110.7 $ 0.6 19,292 2016 120.5 112.4 115.6 117.7 3.5 20,417 2017 120.5 120.0 118.3 9.1 19,925 2018 123.2 116.5 19.8 19,969 2019 128.4 59.2 17,772 Total 591.6 Cumulative Paid Losses and Allocated LAE, Net of Reinsurance and Indemnification For the Years Ended December 31, Accident Year 2015 2016 2017 2018 2019 2015 $ 34.8 $ 70.2 $ 88.6 $ 100.3 $ 107.6 2016 36.2 71.6 89.7 102.3 2017 36.3 72.3 90.7 2018 36.8 68.8 2019 32.4 Total 401.8 Outstanding Loss and Allocated LAE Reserves on Accident Years before 2015, Net of Reinsurance 1.4 Loss and Allocated LAE Reserves, Net of Reinsurance $ 191.2 1 Table retrospectively includes Infinity’s historical incurred and paid accident year claim information for all periods presented. NOTE 6. PROPERTY AND CASUALTY INSURANCE RESERVES (Continued) Commercial Automobile Insurance—Physical Damage 1 DOLLARS IN MILLIONS, EXCEPT CUMULATIVE INCURRED CLAIMS As of December 31, 2019 Incurred Losses and Allocated LAE, Net of Reinsurance For the Years Ended December 31, Total of IBNR Liabilities Plus Expected Development on Reported Claims Cumulative Number of Reported Claims Accident Year 2015 2016 2017 2018 2019 2015 $ 21.5 $ 21.6 $ 21.7 $ 21.7 $ 21.7 $ — 9,643 2016 24.2 24.2 24.1 24.2 — 10,560 2017 24.2 23.5 23.5 0.2 9,788 2018 23.6 23.5 0.3 9,558 2019 26.0 3.5 8,803 Total 118.9 Cumulative Paid Losses and Allocated LAE, Net of Reinsurance and Indemnification For the Years Ended December 31, Accident Year 2015 2016 2017 2018 2019 2015 $ 20.2 $ 21.6 $ 21.7 $ 21.7 $ 21.7 2016 22.4 24.2 24.1 24.2 2017 22.2 23.5 23.4 2018 21.7 23.6 2019 23.0 Total 115.9 Outstanding Loss and Allocated LAE Reserves on Accident Years before 2015, Net of Reinsurance — Loss and Allocated LAE Reserves, Net of Reinsurance $ 3.0 1 Table retrospectively includes Infinity’s historical incurred and paid accident year claim information for all periods presented. NOTE 6. PROPERTY AND CASUALTY INSURANCE RESERVES (Continued) Preferred Personal Automobile Insurance—Liability DOLLARS IN MILLIONS, EXCEPT CUMULATIVE INCURRED CLAIMS As of December 31, 2019 Incurred Losses and Allocated LAE, Net of Reinsurance For the Years Ended December 31, Total of IBNR Liabilities Plus Expected Development on Reported Claims Cumulative Number of Reported Claims Accident Year 2015 2016 2017 2018 2019 2015 $ 168.3 $ 171.8 $ 176.5 $ 177.6 $ 177.1 $ 0.9 38,961 2016 162.1 174.5 179.1 176.8 2.1 36,721 2017 164.4 157.8 155.8 4.5 33,663 2018 157.6 156.3 15.6 32,020 2019 172.2 51.3 32,848 Total 838.2 Cumulative Paid Losses and Allocated LAE, Net of Reinsurance For the Years Ended December 31, Accident Year 2015 2016 2017 2018 2019 2015 $ 73.1 $ 122.4 $ 147.5 $ 163.1 $ 169.3 2016 61.2 114.6 145.6 161.1 2017 59.2 108.9 134.1 2018 55.5 107.6 2019 62.7 Total 634.8 Outstanding Loss and Allocated LAE Reserves on Accident Years before 2015, Net of Reinsurance 9.5 Loss and Allocated LAE Reserves, Net of Reinsurance $ 212.9 NOTE 6. PROPERTY AND CASUALTY INSURANCE RESERVES (Continued) Preferred Personal Automobile Insurance—Physical Damage DOLLARS IN MILLIONS, EXCEPT CUMULATIVE INCURRED CLAIMS As of December 31, 2019 Incurred Losses and Allocated LAE, Net of Reinsurance For the Years Ended December 31, Total of IBNR Liabilities Plus Expected Development on Reported Claims Cumulative Number of Reported Claims Accident Year 2015 2016 2017 2018 2019 2015 $ 101.2 $ 100.7 $ 100.6 $ 100.6 $ 100.6 $ — 68,409 2016 106.6 106.6 106.3 106.2 (0.1 ) 65,348 2017 109.2 105.8 105.2 (0.1 ) 62,553 2018 113.9 111.0 (0.5 ) 60,749 2019 126.4 (0.9 ) 60,548 Total 549.4 Cumulative Paid Losses and Allocated LAE, Net of Reinsurance For the Years Ended December 31, Accident Year 2015 2016 2017 2018 2019 2015 $ 100.1 $ 101.0 $ 100.7 $ 100.6 $ 100.6 2016 105.2 106.9 106.3 106.3 2017 104.4 106.1 105.2 2018 107.2 111.4 2019 120.7 Total 544.2 Outstanding Loss and Allocated LAE Reserves on Accident Years before 2015, Net of Reinsurance (0.1 ) Loss and Allocated LAE Reserves, Net of Reinsurance $ 5.1 NOTE 6. PROPERTY AND CASUALTY INSURANCE RESERVES (Continued) Homeowners Insurance DOLLARS IN MILLIONS, EXCEPT CUMULATIVE INCURRED CLAIMS As of December 31, 2019 Incurred Losses and Allocated LAE, Net of Reinsurance For the Years Ended December 31, Total of IBNR Liabilities Plus Expected Development on Reported Claims Cumulative Number of Reported Claims Accident Year 2015 2016 2017 2018 2019 2015 $ 178.9 $ 164.9 $ 163.2 $ 164.3 $ 164.4 $ 0.5 19,731 2016 200.3 201.7 204.2 202.2 1.4 20,380 2017 261.2 259.5 245.2 0.9 20,982 2018 185.9 183.0 1.2 17,122 2019 162.9 19.2 13,931 Total 957.7 Cumulative Paid Losses and Allocated LAE, Net of Reinsurance For the Years Ended December 31, Accident Year 2015 2016 2017 2018 2019 2015 $ 116.9 $ 154.4 $ 158.0 $ 161.3 $ 162.7 2016 141.2 190.1 195.8 198.9 2017 165.8 242.5 235.7 2018 127.4 180.2 2019 111.1 Total 888.6 Outstanding Loss and Allocated LAE Reserves on Accident Years before 2015, Net of Reinsurance 3.2 Loss and Allocated LAE Reserves, Net of Reinsurance $ 72.3 |
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability | The following table reconciles the net incurred and paid claims development tables presented above to the Company's liability for Property and Casualty Insurance Reserves included in the Consolidated Balance Sheet at December 31, 2019 . DOLLARS IN MILLIONS 2019 Property and Casualty Insurance Reserves, Net of Reinsurance: Specialty Personal Automobile Insurance—Liability 1,140.9 Specialty Personal Automobile Insurance—Physical Damage 42.2 Commercial Automobile Insurance—Liability 191.2 Commercial Automobile Insurance—Physical Damage 3.0 Preferred Personal Automobile Insurance—Liability 212.9 Preferred Personal Automobile Insurance—Physical Damage 5.1 Homeowners Insurance 72.3 Other 57.5 Total 1,725.1 Reinsurance Recoverables on Unpaid Losses and Allocated LAE: Specialty Personal Automobile Insurance—Liability 8.7 Commercial Automobile Insurance—Liability 9.4 Preferred Personal Automobile Insurance—Liability 25.2 Homeowners Insurance 15.5 Other 6.8 Total 65.6 Unallocated LAE 179.1 Property and Casualty Insurance Reserves, Gross of Reinsurance $ 1,969.8 |
Short-duration Insurance Contracts, Schedule of Historical Claims Duration | The following is supplementary information about average historical claims duration as of December 31, 2019 . Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance (Unaudited) Years 1 2 3 4 5 Specialty Personal Automobile Insurance—Liability 43.2 % 81.1 % 92.3 % 96.3 % 98.4 % Specialty Personal Automobile Insurance—Physical Damage 93.9 % 100.7 % 100.1 % 100.0 % 99.9 % Commercial Automobile Insurance—Liability 29.9 % 61.1 % 77.6 % 88.8 % 97.2 % Commercial Automobile Insurance—Physical Damage 92.2 % 100.0 % 99.7 % 100.0 % 100.0 % Preferred Personal Automobile Insurance—Liability 37.2 % 68.2 % 83.9 % 91.6 % 95.6 % Preferred Personal Automobile Insurance—Physical Damage 98.0 % 100.6 % 100.1 % 100.0 % 100.0 % Homeowners Insurance 69.3 % 96.3 % 96.4 % 98.2 % 99.0 % |
Liability for Unpaid Claims Adjustment Expense by Expense Type | Property and Casualty Insurance Reserve activity for the years ended December 31, 2019 , 2018 and 2017 was: DOLLARS IN MILLIONS 2019 2018 2017 Beginning Property and Casualty Insurance Reserves: Gross of Reinsurance at Beginning of Year $ 1,874.9 $ 1,016.8 $ 931.4 Less Reinsurance Recoverables at Beginning of Year 101.9 53.1 50.2 Property and Casualty Insurance Reserves, Net of Reinsurance at Beginning of Year 1,773.0 963.7 881.2 Property and Casualty Insurance Reserves Acquired, Net of Reinsurance 3.6 695.1 — Incurred Losses and LAE related to: Current Year 2,879.5 2,093.4 1,454.1 Prior Years (71.1 ) (7.4 ) 18.9 Total Incurred Losses and LAE 2,808.4 2,086.0 1,473.0 Paid Losses and LAE related to: Current Year: 1,682.1 1,300.8 868.1 Prior Years 998.7 671.0 522.4 Total Paid Losses and LAE 2,680.8 1,971.8 1,390.5 Property and Casualty Insurance Reserves, Net of Reinsurance at End of Year 1,904.2 1,773.0 963.7 Plus Reinsurance Recoverables at End of Year 65.6 101.9 53.1 Property and Casualty Insurance Reserves, Gross of Reinsurance at End of Year $ 1,969.8 $ 1,874.9 $ 1,016.8 |
Policyholder Contract Liabili_2
Policyholder Contract Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Insurance [Abstract] | |
Schedule of Liability for Future Policy Benefits | Policyholder Contract Liabilities at December 31, 2019 and 2018 were as follows: DOLLARS IN MILLIONS December 31, 2019 2018 FHLB Funding Agreements $ 243.4 $ 10.0 Other 66.4 66.8 Total $ 309.8 $ 76.8 |
Schedule of Federal Home Loan Bank, Advances, by Branch of FHLB Bank | DOLLARS IN MILLIONS 2019 2018 Liability under Funding Agreements $ 243.4 $ 10.0 Fair Value of Collateral Pledged $ 287.8 $ 15.7 FHLB of Chicago Common Stock Owned at Cost $ 4.9 $ 0.8 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | Total amortized cost of Long-term Debt outstanding at December 31, 2019 and 2018 was: DOLLARS IN MILLIONS 2019 2018 Term Loan due June 29, 2020 $ — $ 34.9 Term Loan due July 5, 2023 49.9 — 5.0% Senior Notes due September 19, 2022 279.9 281.5 4.35% Senior Notes due February 15, 2025 448.6 448.4 7.375% Subordinated Debentures due February 27, 2054 — 144.2 Total Long-term Debt Outstanding $ 778.4 $ 909.0 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Lease, Cost | Supplemental cash flow information related to the Company’s operating leases for the year-ended December 31, 2019 is as follows: DOLLARS IN MILLIONS 2019 Operating Cash Flows from Operating Leases (Fixed Payments) $ 20.0 Operating Cash Flows from Operating Leases (Liability Reduction) 17.6 Financing Cash Flows from Finance Leases 0.7 Right-of-Use Assets Obtained in Exchange for New Operating Lease Liabilities 25.9 Significant judgments and assumptions for determining lease asset and liability as December 31, 2019 are presented below. Weighted-average Remaining Lease Term - Finance Leases 1.7 years Weighted-average Remaining Lease Term - Operating Leases 7.0 years Weighted-average Discount Rate - Finance Leases 4.0 % Weighted-average Discount Rate - Operating Leases 3.9 % Lease expenses are primarily included in insurance expenses in the Consolidated Statements of Income. Additional information regarding the Company’s operating leases is presented below. DOLLARS IN MILLIONS 2019 Lease Cost: Amortization of Right-of-Use Assets - Finance Leases $ 0.7 Operating Lease Cost 20.7 Short-Term Lease Cost (1) 0.1 Total Expense 21.5 Less: Sublease Income (2) 0.1 Total Lease Cost $ 21.4 (1) - Leases with an initial term of twelve months of less are not recorded on the balance sheet. (2) - Sublease income consists of rent from third parties of office space and is recognized as part of other income in the Consolidated Statements of Income. The following table presents operating lease ROU assets and lease liabilities. DOLLARS IN MILLIONS 2019 Operating Lease Right-of-Use Assets $ 75.6 Operating Lease Liabilities 93.2 The following table presents operating lease ROU assets and lease liabilities at December 31, 2019. DOLLARS IN MILLIONS 2019 Operating Lease Right-of-Use Assets $ 18.6 Operating Lease Liabilities 31.3 Supplemental cash flow information related to Kemper’s operating leases for the year-ended December 31, 2019 follows. DOLLARS IN MILLIONS 2019 Operating Cash Flows from Operating Leases (Fixed Payments) $ 1.2 Operating Cash Flows from Operating Leases (Liability Reduction) 1.0 Right-of-Use Assets Obtained in Exchange for New Operating Lease Liabilities 7.9 Significant judgments and assumptions for determining lease asset and liability as December 31, 2019 are presented below. Weighted-average Remaining Lease Term - Operating Leases 13.0 years Weighted-average Discount Rate - Operating Leases 4.0 % |
Schedule of Future Minimum Lease Payments for Finance Leases | Future minimum lease payments under finance and operating leases at December 31, 2019 were: DOLLARS IN MILLIONS Finance Leases Operating Leases 2020 $ 0.3 $ 20.5 2021 0.2 19.3 2022 — 17.0 2023 — 14.7 2024 — 8.3 2025 and Thereafter — 28.1 Total Future Payments $ 0.5 $ 107.9 Less Discount — 14.7 Present Value of Minimum Lease Payments $ 0.5 $ 93.2 NOTE 9. LEASES (Continued) Future minimum lease payments under finance and operating leases at December 31, 2018 were: DOLLARS IN MILLIONS Finance Leases Operating Leases 2019 $ 0.7 $ 20.5 2020 0.7 18.4 2021 0.3 16.9 2022 0.2 15.0 2023 — 12.5 2024 and Thereafter — 27.1 Total Future Payments $ 1.9 $ 110.4 Less Imputed Interest — Present Value of Minimum Lease Payments $ 1.9 |
Schedule of Future Minimum Lease Payments for Operating Leases | Future minimum lease payments under finance and operating leases at December 31, 2019 were: DOLLARS IN MILLIONS Finance Leases Operating Leases 2020 $ 0.3 $ 20.5 2021 0.2 19.3 2022 — 17.0 2023 — 14.7 2024 — 8.3 2025 and Thereafter — 28.1 Total Future Payments $ 0.5 $ 107.9 Less Discount — 14.7 Present Value of Minimum Lease Payments $ 0.5 $ 93.2 NOTE 9. LEASES (Continued) Future minimum lease payments under finance and operating leases at December 31, 2018 were: DOLLARS IN MILLIONS Finance Leases Operating Leases 2019 $ 0.7 $ 20.5 2020 0.7 18.4 2021 0.3 16.9 2022 0.2 15.0 2023 — 12.5 2024 and Thereafter — 27.1 Total Future Payments $ 1.9 $ 110.4 Less Imputed Interest — Present Value of Minimum Lease Payments $ 1.9 Future minimum operating lease payments at December 31, 2019 were: DOLLARS IN MILLIONS Operating Leases 2020 $ 2.1 2021 3.5 2022 3.7 2023 3.5 2024 2.5 2025 and Thereafter 25.6 Total Future Payments $ 40.9 Less Discount 9.6 Present Value of Minimum Lease Payments $ 31.3 |
Long-term Equity-based Compen_2
Long-term Equity-based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | The assumptions used in the Black-Scholes pricing model for Tandem Awards granted during the years ended December 31, 2019 , 2018 and 2017 are presented below. 2019 2018 2017 RANGE OF VALUATION ASSUMPTIONS Expected Volatility 28.97 % - 33.78 % 27.31 % - 32.15 % 26.17 % - 30.39 % Risk-free Interest Rate 1.35 - 2.60 2.44 - 3.00 1.59 - 2.25 Expected Dividend Yield 1.05 - 1.38 1.16 - 1.72 1.39 - 2.43 WEIGHTED-AVERAGE EXPECTED LIFE IN YEARS Employee Grants 4 - 6 4 - 6 4 - 6.5 |
Disclosure of Share-based Compensation Arrangements by Share-based Payment Award | Tandem Award activity for the year ended December 31, 2019 is presented below. Shares Subject to Awards Weighted- average Exercise Price Per Share ($) Weighted- average Remaining Contractual Life (in Years) Aggregate Intrinsic Value ($ In Millions) Outstanding at Beginning of the Year 1,434,273 $ 46.48 Granted 578,375 76.96 Exercised (159,630 ) 36.92 Forfeited or Expired (44,203 ) 68.43 Outstanding at December 31, 2019 1,808,815 56.53 7.65 $ 38.3 Vested and Expected to Vest at December 31, 2019 1,718,559 $ 56.03 7.61 $ 37.2 Exercisable at December 31, 2019 803,769 $ 42.15 6.50 $ 28.4 |
Schedule of Options Outstanding | Information pertaining to Tandem Awards outstanding at December 31, 2019 is presented below. Outstanding Exercisable Range of Exercise Prices ($) Shares Subject to Awards Weighted- average Exercise Price Per Share ($) Weighted- average Remaining Contractual Life (in Years) Shares Subject to Awards Weighted- average Exercise Price Per Share ($) $ 20.01 - 30.00 150,627 $ 27.77 5.63 150,627 $ 27.77 30.01 - 40.00 173,895 34.83 5.36 165,086 34.58 40.01 - 50.00 401,385 42.56 6.79 313,459 42.41 50.01 - 60.00 461,459 59.90 8.07 147,944 59.89 60.01 - 70.00 57,395 67.04 8.14 22,289 66.85 70.01 - 80.00 518,820 76.27 9.09 3,435 77.76 80.01 - 90.00 45,234 85.44 9.30 929 82.10 20.01 - 90.00 1,808,815 56.53 7.65 803,769 42.15 |
Schedule of Share-based Compensation, Nonemployee Director Deferred Stock Unit Award Plan, Activity | Activity related to DSU awards for the year ended December 31, 2019 is presented below. Number of DSUs Weighted- average Grant-date Fair Value Per DSU Vested Balance at Beginning of the Year 57,340 $ 44.89 Reduction for Shares Issued on Conversion (12,520 ) 45.44 Vested Balance at December 31, 2019 44,820 $ 44.74 |
Time Vested Restricted Stock Units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of Share-based Compensation, Restricted Stock Units and Performance Stock Units Activity | Activity related to nonvested RSUs for the year ended December 31, 2019 is presented below. Time-based Restricted Stock Unit Awards Number of Restricted Stock Units Weighted- average Grant-date Fair Value Per Unit Nonvested Balance at Beginning of the Year 316,241 $ 65.36 Granted 23,383 82.56 Vested (135,909 ) 61.59 Forfeited (21,527 ) 69.48 Nonvested Balance at December 31, 2019 182,188 $ 71.12 |
Performance Based Restricted Stock Units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of Share-based Compensation, Restricted Stock Units and Performance Stock Units Activity | Activity related to nonvested PSU awards for the year ended December 31, 2019 is presented below. PSU Awards Number of PSUs Weighted- average Grant-date Fair Value Per PSU Nonvested Balance at Beginning of the Year 327,300 $ 47.14 Granted 254,535 61.22 Vested (204,542 ) 29.20 Forfeited (16,473 ) 65.55 Nonvested Balance at December 31, 2019 360,820 $ 66.42 |
Income from Continuing Operat_2
Income from Continuing Operations Per Unrestricted Share (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of Calculation of Numerator and Denominator in Earnings Per Share | A reconciliation of the numerator and denominator used in the calculation of Basic Income from Continuing Operations Per Unrestricted Share and Diluted Income from Continuing Operations Per Unrestricted Share for the years ended December 31, 2019 , 2018 and 2017 is presented below. 2019 2018 2017 DOLLARS IN MILLIONS Income from Continuing Operations $ 531.1 $ 188.4 $ 119.9 Less Income from Continuing Operations Attributed to Participating Awards 1.7 1.0 0.8 Income from Continuing Operations Attributed to Unrestricted Shares 529.4 187.4 119.1 Dilutive Effect on Income of Equity-based Compensation Equivalent Shares — — — Diluted Income from Continuing Operations Attributed to Unrestricted Shares $ 529.4 $ 187.4 $ 119.1 SHARES IN THOUSANDS Weighted-average Unrestricted Shares Outstanding 65,880.9 58,149.4 51,345.6 Equity-based Compensation Equivalent Shares 667.2 602.5 232.3 Weighted-average Unrestricted Shares and Equivalent Shares Outstanding Assuming Dilution 66,548.1 58,751.9 51,577.9 PER UNRESTRICTED SHARE IN WHOLE DOLLARS Basic Income from Continuing Operations Per Unrestricted Share $ 8.04 $ 3.22 $ 2.32 Diluted Income from Continuing Operations Per Unrestricted Share $ 7.96 $ 3.19 $ 2.31 |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | The number of shares of Kemper common stock that were excluded from the calculations of Equity-based Compensation Equivalent Shares and Weighted-average Unrestricted Shares and Equivalent Shares Outstanding Assuming Dilution for the years ended December 31, 2019 , 2018 and 2017 , because the effect of inclusion would be anti-dilutive, is presented below. SHARES IN THOUSANDS 2019 2018 2017 Equity-based Compensation Equivalent Shares 556.4 231.3 346.6 Weighted-average Unrestricted Shares and Equivalent Shares Outstanding Assuming Dilution 556.4 231.3 346.6 |
Other Comprehensive Income (L_2
Other Comprehensive Income (Loss) And Accumulated Other Comprehensive Income (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Schedule of Comprehensive Income (Loss) | The components of Other Comprehensive Income (Loss) Before Income Taxes for the years ended December 31, 2019 , 2018 and 2017 were: DOLLARS IN MILLIONS 2019 2018 2017 Other Comprehensive Income (Loss) Before Income Taxes: Unrealized Holding Gains (Losses) Arising During the Year Before Reclassification Adjustment $ 433.4 $ (214.2 ) $ 119.1 Reclassification Adjustment for Amounts Included in Net Income (28.1 ) (21.9 ) (35.3 ) Unrealized Holding Gains (Losses) 405.3 (236.1 ) 83.8 Foreign Currency Translation Adjustments Arising During the Year Before Reclassification Adjustment — — 1.7 Reclassification Adjustment for Amounts Included in Net Income — 0.3 — Foreign Currency Translation Adjustments — 0.3 1.7 Net Unrecognized Postretirement Benefit Costs Arising During the Year (4.8 ) (8.0 ) 3.9 Reclassification Adjustments for Amounts Included in Net Income: Amortization of Net Unrecognized Postretirement Benefit Costs (3.0 ) 1.1 (0.6 ) Total Reclassification Adjustments for Amounts Included in Net Income (3.0 ) 1.1 (0.6 ) Net Unrecognized Postretirement Benefit Costs (7.8 ) (6.9 ) 3.3 Gains (Losses) on Cash Flow Hedges During the Year Before Reclassification Adjustment — 0.9 (8.0 ) Reclassification Adjustment for Amounts Included in Net Income 0.4 0.3 1.3 Gains (Losses) on Cash Flow Hedges 0.4 1.2 (6.7 ) Other Comprehensive Income (Loss) Before Income Taxes $ 397.9 $ (241.5 ) $ 82.1 NOTE 13. OTHER COMPREHENSIVE INCOME (LOSS) AND ACCUMULATED OTHER COMPREHENSIVE INCOME (Continued) The components of Other Comprehensive Income Tax Benefit (Expense) for the years ended December 31, 2019 , 2018 and 2017 were: DOLLARS IN MILLIONS 2019 2018 2017 Income Tax Benefit (Expense): Unrealized Holding Gains (Losses) Arising During the Year Before Reclassification Adjustment $ (91.0 ) $ 45.0 $ (38.2 ) Reclassification Adjustment for Amounts Included in Net Income 5.8 4.6 12.3 Unrealized Holding Gains (Losses) (85.2 ) 49.6 (25.9 ) Foreign Currency Translation Adjustments Arising During the Year Before Reclassification Adjustment — — (0.6 ) Reclassification Adjustment for Amounts Included in Net Income — (0.1 ) — Foreign Currency Translation Adjustment — (0.1 ) (0.6 ) Net Unrecognized Postretirement Benefit Costs Arising During the Year 1.0 1.7 (0.8 ) Reclassification Adjustments for Amounts Included in Net Income: Amortization of Net Unrecognized Postretirement Benefit Costs 0.7 (0.2 ) 0.2 Total Reclassification Adjustments for Amounts Included in Net Income 0.7 (0.2 ) 0.2 Net Unrecognized Postretirement Benefit Costs 1.7 1.5 (0.6 ) Gains (Losses) on Cash Flow Hedges During the Year Before Reclassification Adjustment — (0.2 ) 2.8 Reclassification Adjustment for Amounts Included in Net Income (0.1 ) (0.1 ) (0.4 ) Gains (Losses) on Cash Flow Hedges (0.1 ) (0.3 ) 2.4 Other Comprehensive Income Tax Benefit (Expense) $ (83.6 ) $ 50.7 $ (24.7 ) |
Schedule of Accumulated Other Comprehensive Income (Loss) | The components of AOCI at December 31, 2019 and 2018 were: DOLLARS IN MILLIONS 2019 2018 Net Unrealized Gains on Investments, Net of Income Taxes: Other Net Unrealized Gains on Investments $ 439.4 $ 119.3 Net Unrecognized Postretirement Benefit Costs, Net of Income Taxes (100.6 ) (94.5 ) Losses on Cash Flow Hedges, Net of Income Taxes (2.7 ) (3.0 ) Accumulated Other Comprehensive Income $ 336.1 $ 21.8 |
Reclassification out of Accumulated Other Comprehensive Income | Components of AOCI were reclassified to the following lines of the Consolidated Statements of Income for the years ended December 31, 2019 , 2018 and 2017 : DOLLARS IN MILLIONS 2019 2018 2017 Reclassification of AOCI from Net Unrealized Gains and Losses on Investments to: Net Realized Gains on Sales of Investments $ 41.9 $ 26.4 $ 49.6 Net Impairment Losses Recognized in Earnings (13.8 ) (4.5 ) (14.3 ) Total Before Income Taxes 28.1 21.9 35.3 Income Tax Expense (5.8 ) (4.6 ) (12.3 ) Reclassification from AOCI, Net of Income Taxes 22.3 17.3 23.0 Reclassification of AOCI from Unrecognized Postretirement Benefit Costs to: Interest and Other Expenses (Income) 3.0 (1.1 ) 0.6 Income Tax Benefit (Expense) (0.7 ) 0.2 (0.2 ) Reclassification from AOCI, Net of Income Taxes 2.3 (0.9 ) 0.4 Reclassification of AOCI from Loss on Cash Flow Hedges to: Interest and Other Expenses (0.4 ) (0.3 ) (1.3 ) Income Tax Benefit 0.1 0.1 0.4 Reclassification from AOCI, Net of Income Taxes (0.3 ) (0.2 ) (0.9 ) Total Reclassification from AOCI to Net Income $ 24.3 $ 16.2 $ 22.5 |
Income from Investments (Tables
Income from Investments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Investment Income, Net [Abstract] | |
Net Investment Income | Net Investment Income for the years ended December 31, 2019 , 2018 and 2017 was: DOLLARS IN MILLIONS 2019 2018 2017 Investment Income: Interest on Fixed Income Securities $ 299.4 $ 268.9 $ 246.6 Dividends on Equity Securities Excluding Alternative Investments 22.9 13.6 9.3 Alternative Investments: Equity Method Limited Liability Investments 1.0 11.0 24.8 Fair Value Option Investments — — 1.3 Limited Liability Investments Included in Equity Securities 18.0 26.4 28.6 Total Alternative Investments 19.0 37.4 54.7 Short-term Investments 8.2 7.0 1.6 Loans to Policyholders 22.6 22.5 21.6 Real Estate 9.8 9.6 10.7 Other 1.5 0.9 0.5 Total Investment Income 383.4 359.9 345.0 Investment Expenses: Real Estate 9.6 9.7 10.5 Other Investment Expenses 9.5 9.3 7.3 Total Investment Expenses 19.1 19.0 17.8 Net Investment Income $ 364.3 $ 340.9 $ 327.2 |
Realized Gain (Loss) on Investments | The components of Net Realized Gains on Sales of Investments for the years ended December 31, 2019 , 2018 and 2017 were: DOLLARS IN MILLIONS 2019 2018 2017 Fixed Maturities: Gains on Sales $ 41.1 $ 25.3 $ 8.4 Losses on Sales (4.8 ) (11.1 ) (0.9 ) Equity Securities: Gains on Sales 5.8 12.3 42.0 Losses on Sales (0.2 ) — — Real Estate: Gains on Sales — — 6.4 Other Investments: Gains on Other Sales — — 0.1 Losses on Sales — (0.1 ) (0.1 ) Net Gains on Trading Securities — — 0.6 Net Realized Gains on Sales of Investments $ 41.9 $ 26.4 $ 56.5 Gross Gains on Sales $ 46.9 $ 37.6 $ 56.9 Gross Losses on Sales (5.0 ) (11.2 ) (1.0 ) Net Gains on Trading Securities — — 0.6 Net Realized Gains on Sales of Investments $ 41.9 $ 26.4 $ 56.5 |
Other than Temporary Impairment, Credit Losses Recognized in Earnings | The following table sets forth the pre-tax amount of other-than-temporary impairments (“OTTI”) credit losses, recognized in Retained Earnings for Investments in Fixed Maturities held by the Company as of the beginning and end of the periods presented for which a portion of the OTTI loss related to factors other than credit has been recognized in AOCI, and the corresponding changes in such amounts. DOLLARS IN MILLIONS 2019 2018 2017 Cumulative Balance of Pre-tax Credit Losses Recognized in Retained Earnings at Beginning of Year $ 1.1 $ 1.6 $ 1.4 Pre-tax Credit Losses on Fixed Maturities without Pre-tax Credit Losses Included in Cumulative Balance at Beginning of Year 0.2 — 1.2 Reductions for Change in Impairment Status: From Status of Credit Loss to Status of Intent-to-sell or Required-to-sell — (0.5 ) (0.7 ) Reductions for Investments Sold During Year (0.1 ) — (0.3 ) Cumulative Balance of Pre-tax Credit Losses Recognized in Retained Earnings at End of Year $ 1.2 $ 1.1 $ 1.6 The components of Net Impairment Losses Recognized in Earnings reported in the Consolidated Statements of Income for the years ended December 31, 2019 , 2018 and 2017 were: DOLLARS IN MILLIONS 2019 2018 2017 Fixed Maturities $ (13.3 ) $ (2.0 ) $ (12.1 ) Equity Securities (0.5 ) (2.5 ) (2.2 ) Net Impairment Losses Recognized in Earnings $ (13.8 ) $ (4.5 ) $ (14.3 ) |
Insurance Expenses (Tables)
Insurance Expenses (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Insurance Expenses [Abstract] | |
Schedule of Insurance Expenses | Insurance Expenses for the years ended December 31, 2019 , 2018 and 2017 were: DOLLARS IN MILLIONS 2019 2018 2017 Commissions $ 708.8 $ 558.7 $ 425.6 General Expenses 278.0 231.9 196.2 Premium Tax Expense 93.5 71.0 50.7 Total Costs Incurred 1,080.3 861.6 672.5 Policy Acquisition Costs: Deferred (475.2 ) (481.5 ) (351.6 ) Amortized 408.3 377.1 318.3 Net Policy Acquisition Costs Amortized (66.9 ) (104.4 ) (33.3 ) Amortization of VOBA 6.3 143.3 5.1 Insurance Expenses $ 1,019.7 $ 900.5 $ 644.3 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
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, 2019 and 2018 were: DOLLARS IN MILLIONS 2019 2018 Deferred Income Tax Assets: Insurance Reserves $ 16.2 $ 17.0 Unearned Premium Reserves 64.5 59.1 Tax Capitalization of Policy Acquisition Costs 44.6 44.0 Payroll and Employee Benefit Accruals 35.0 49.6 Net Operating Loss Carryforwards 3.3 5.5 Other 12.5 11.2 Total Deferred Income Tax Assets 176.1 186.4 Deferred Income Tax Liabilities: Investments 155.6 33.2 Deferred Policy Acquisition Costs 112.9 98.7 Life VIF and P&C Customer Relationships 5.3 6.0 Goodwill and Other Intangible Assets Acquired 39.3 45.2 Depreciable Assets 37.6 27.1 Other 3.6 2.4 Total Deferred Income Tax Liabilities 354.3 212.6 Net Deferred Income Tax Liabilities $ 178.2 $ 26.2 |
Summary of Operating Loss Carryforwards | The expiration of federal net operating loss (“NOL”) carryforwards and their related deferred income tax assets at December 31, 2019 is presented below by year of expiration. DOLLARS IN MILLIONS NOL Carry-forwards Deferred Tax Asset Expiring in: 2027 11.2 2.4 2028 4.4 0.9 Total All Years $ 15.6 $ 3.3 |
Reconciliation of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of Unrecognized Tax Benefits for the years ended December 31, 2019 , 2018 and 2017 is presented below. DOLLARS IN MILLIONS 2019 2018 2017 Liabilities for Unrecognized Tax Benefits at Beginning of Year $ 4.4 $ 8.1 $ 5.1 Additions for Tax Positions of Current Year — 0.7 3.1 Reductions for Tax Positions of Prior Years (4.4 ) (4.4 ) — Reduction for Expiration of Federal Statute of Limitations — — (0.1 ) Liabilities for Unrecognized Tax Benefits at End of Year $ — $ 4.4 $ 8.1 |
Schedule of Components of Income Tax Expense (Benefit) | The components of Income Tax Expense from Continuing Operations for the years ended December 31, 2019 , 2018 and 2017 were: DOLLARS IN MILLIONS 2019 2018 2017 Current Income Tax Benefit (Expense) $ (66.4 ) $ 32.2 $ (23.1 ) Deferred Income Tax Expense (68.5 ) (46.5 ) (15.1 ) (Increase) Decrease Unrecognized Tax Benefits 4.4 3.6 (3.0 ) Income Tax Expense $ (130.5 ) $ (10.7 ) $ (41.2 ) |
Schedule of Effective Income Tax Rate Reconciliation | A reconciliation of the Statutory Federal Income Tax Expense and Rate to the Company’s Effective Income Tax Expense and Rate from Continuing Operations for the years ended December 31, 2019 , 2018 and 2017 is presented below. DOLLARS IN MILLIONS 2019 2018 2017 Amount Rate Amount Rate Amount Rate Statutory Federal Income Tax Expense $ (138.9 ) 21.0 % $ (41.8 ) 21.0 % $ (56.4 ) 35.0 % Tax-exempt Income and Dividends Received Deduction 4.3 (0.7 ) 4.8 (2.4 ) 9.8 (6.0 ) Stock-Based Compensation 4.4 (0.7 ) 1.4 (0.7 ) 0.4 (0.2 ) Nondeductible Executive Compensation (2.5 ) 0.4 (1.4 ) 0.7 — — Tax Reform — — 26.4 (13.3 ) 7.4 (4.6 ) Other, Net 2.2 (0.3 ) (0.1 ) 0.1 (2.4 ) 1.4 Effective Income Tax Benefit (Expense) from Continuing Operations $ (130.5 ) 19.7 % $ (10.7 ) 5.4 % $ (41.2 ) 25.6 % |
Comprehensive Income Tax Benefit and Expenses | Comprehensive Income Tax (Expense) Benefit included in the Consolidated Financial Statements for the years ended December 31, 2019 , 2018 and 2017 was: DOLLARS IN MILLIONS 2019 2018 2017 Income Tax Benefit (Expense): Continuing Operations $ (130.5 ) $ (10.7 ) $ (41.2 ) Discontinued Operations — (0.6 ) (0.5 ) Unrealized Depreciation (Appreciation) on Securities (85.2 ) 49.6 (25.9 ) Foreign Currency Translation Adjustments on Investments — (0.1 ) (0.6 ) Tax Effects from Postretirement Benefit Plans 1.7 1.5 (0.6 ) Tax Effects from Cash Flow Hedge (0.1 ) (0.3 ) 2.4 Comprehensive Income Tax (Expense) Benefit $ (214.1 ) $ 39.4 $ (66.4 ) |
Pension Benefits (Tables)
Pension Benefits (Tables) - Pension Plans, Defined Benefit | 12 Months Ended |
Dec. 31, 2019 | |
Defined Benefit Plan Disclosure [Line Items] | |
Schedule of Changes in Fair Value of Plan Assets | Changes in Fair Value of Plan Assets and Changes in Projected Benefit Obligation for the Pension Plan for the years ended December 31, 2019 and 2018 is presented below. DOLLARS IN MILLIONS 2019 2018 Fair Value of Plan Assets at Beginning of Year $ 525.3 $ 579.8 Actual Return on Plan Assets 113.2 (32.1 ) Employer Contributions 55.3 5.1 Benefits Paid (29.2 ) (27.5 ) Fair Value of Plan Assets at End of Year 664.6 525.3 Projected Benefit Obligation at Beginning of Year 580.5 637.2 Interest Cost 22.3 20.3 Benefits Paid (29.2 ) (27.5 ) Actuarial (Gains) Losses 86.9 (49.5 ) Projected Benefit Obligation at End of Year 660.5 580.5 Funded Status—Plan Assets in Excess (Deficit) of Projected Benefit Obligation $ 4.1 $ (55.2 ) Unamortized Amount Reported in AOCI at End of Year $ (145.7 ) $ (144.4 ) Accumulated Benefit Obligation at End of Year $ 660.4 $ 580.3 |
Schedule of Assumptions Used | The weighted-average discount rate, service cost discount rate, interest cost discount rate, rate of increase in future compensation levels and expected long-term rate of return on plan assets used to develop the components of Pension Expense for the Pension Plan for the years ended December 31, 2019 , 2018 and 2017 were: 2019 2018 2017 Weighted-average Discount Rate 4.28 % 3.63 % 4.19 % Service Cost Discount Rate 4.26 3.61 4.15 Interest Cost Discount Rate 3.91 3.26 3.52 Rate of Increase in Future Compensation Levels 3.40 3.40 2.56 Expected Long Term Rate of Return on Plan Assets 5.70 5.35 5.80 The weighted-average discount rate and rate of increase in future compensation levels used to estimate the components of the Projected Benefit Obligation for the Pension Plan at December 31, 2019 and 2018 were: 2019 2018 Discount Rate 3.21 % 4.28 % Rate of Increase in Future Compensation Levels 3.40 3.40 |
Schedule of Allocation of Plan Assets | Asset allocations for the Pension Plan at December 31, 2019 and 2018 by asset category were: ASSET CATEGORY 2019 2018 Cash and Short-term Investments 2 % 1 % Corporate Bonds and Notes 40 41 Common and Preferred Stocks 35 37 Bond Exchange Traded Funds 14 6 Other Assets 9 15 Total 100 % 100 % |
Fair Value, Measurement Inputs, Disclosure | Fair value measurements for the Pension Plan’s assets at December 31, 2019 are summarized below. DOLLARS IN MILLIONS Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Measured at Net Asset Value Fair Value Fixed Maturities: U.S. Government and Government Agencies and Authorities $ 158.4 $ — $ — — $ 158.4 States and Political Subdivisions — 0.1 — — 0.1 Corporate Bonds and Notes — 107.3 — — 107.3 Equity Securities: Common Stocks: Other Industries 140.0 21.5 — — 161.5 Other Equity Interests: Collective Investment Funds — — — 71.8 71.8 Bond Exchange Traded Funds 92.8 — — — 92.8 Limited Liability Companies and Limited Partnerships — — — 63.7 63.7 Short-term Investments 10.0 — — — 10.0 Receivables and Other (1.0 ) — — — (1.0 ) Total $ 400.2 $ 128.9 $ — $ 135.5 $ 664.6 Fair value measurements for the Pension Plan’s assets at December 31, 2018 are summarized below. DOLLARS IN MILLIONS Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Measured at Net Asset Value Fair Value Fixed Maturities: U.S. Government and Government Agencies and Authorities $ 110.9 $ — $ — — $ 110.9 States and Political Subdivisions — 2.1 — — 2.1 Corporate Bonds and Notes — 103.4 — — 103.4 Equity Securities: Preferred Stocks: Finance, Insurance and Real Estate — — — — — Common Stocks: Manufacturing — — — — — Other Industries 106.0 17.4 — — 123.4 Other Equity Interests: Collective Investment Funds — — — 68.6 68.6 Bond Exchange Traded Funds 34.1 — — — 34.1 Limited Liability Companies and Limited Partnerships — — — 77.1 77.1 Short-term Investments 4.4 — — — 4.4 Receivables and Other 1.0 — 0.3 — 1.3 Total $ 256.4 $ 122.9 $ 0.3 $ 145.7 $ 525.3 |
Schedule of Defined Benefit Plan Amounts Recognized in Other Comprehensive Income (Loss) | The components of Comprehensive Pension Expense (Income) for the Pension Plan for the years ended December 31, 2019 , 2018 and 2017 were: DOLLARS IN MILLIONS 2019 2018 2017 Service Cost Earned During the Year $ — $ — $ — Interest Cost on Projected Benefit Obligation 22.3 20.3 20.6 Expected Return on Plan Assets (30.6 ) (28.9 ) (30.9 ) Amortization of Actuarial Loss 2.9 4.3 2.6 Pension Income Recognized in Consolidated Statements of Income (5.4 ) (4.3 ) (7.7 ) Unrecognized Pension Gain (Loss) Arising During the Year 4.2 11.5 (4.9 ) Amortization of Accumulated Unrecognized Pension Loss (2.9 ) (4.3 ) (2.6 ) Comprehensive Pension Expense (Income) $ (4.1 ) $ 2.9 $ (15.2 ) |
Schedule of Expected Benefit Payments | The following benefit payments (net of participant contributions), which consider expected future service of certain participants that remain eligible for a benefit accrual, as appropriate, are expected to be paid from the Pension Plan: DOLLARS IN MILLIONS Years Ending December 31, 2020 2021 2022 2023 2024 2025-2029 Estimated Pension Benefit Payments $ 31.4 $ 32.1 $ 33.2 $ 34.0 $ 34.7 $ 179.1 |
Significant Unobservable Inputs (Level 3) | |
Defined Benefit Plan Disclosure [Line Items] | |
Schedule of Changes in Fair Value of Plan Assets | Additional information pertaining to the changes in the fair value of the Pension Plan’s assets classified as Level 3 in the two preceding tables for the years ended December 31, 2019 and 2018 is presented below. DOLLARS IN MILLIONS 2019 2018 Balance at Beginning of Year $ 0.3 $ 0.3 Purchases, Sales and Settlements, Net (0.3 ) — Balance at End of Year $ — $ 0.3 |
Postretirement Benefits Other_2
Postretirement Benefits Other Than Pensions (Tables) - Other Postretirement Benefit Plan, Defined Benefit | 12 Months Ended |
Dec. 31, 2019 | |
Defined Benefit Plan Disclosure [Line Items] | |
Schedule of Changes in Fair Value of Plan Assets | Changes in Fair Value of Plans’ Assets and Changes in Accumulated Postretirement Benefit Obligation for the years ended December 31, 2019 and 2018 were: DOLLARS IN MILLIONS 2019 2018 Fair Value of Plans’ Assets at Beginning of Year $ — $ — Employer Contributions 1.1 1.1 Plan Participants’ Contributions 0.3 0.3 Benefits Paid (1.4 ) (1.4 ) Fair Value of Plan Assets at End of Year — — Accumulated Postretirement Benefit Obligation at Beginning of Year 15.0 14.4 Obligation from Acquisition of Infinity — 3.9 Service Cost 0.2 0.2 Interest Cost 0.4 0.4 Plan Participants’ Contributions 0.3 0.3 Benefits Paid (1.4 ) (1.4 ) Medicare Part D Subsidy Received — 0.2 Actuarial Gain (1.7 ) (3.0 ) Accumulated Postretirement Benefit Obligation at End of Year 12.8 15.0 Funded Status—Accumulated Postretirement Benefit Obligation in Excess of Plans’ Assets $ (12.8 ) $ (15.0 ) Unamortized Actuarial Gain Reported in AOCI at End of Year $ 23.8 $ 24.9 |
Schedule of Assumptions Used | The weighted-average discount rate and rate of increase in future compensation levels used to develop OPEB Expense for the years ended December 31, 2019 , 2018 and 2017 were: 2019 2018 2017 Weighted-average Discount Rate 4.08 % 3.36 % 3.61 % Service Cost Discount Rate 4.16 3.52 3.79 Interest Cost Discount Rate 3.69 2.96 2.92 Rate of Increase in Future Compensation Levels 2.20 2.20 2.60 The weighted-average discount rate and rate of increase in future compensation levels used to develop the components of the Accumulated Postretirement Benefit Obligation at December 31, 2019 and 2018 were: 2019 2018 Discount Rate 2.91 % 4.02 % Rate of Increase in Future Compensation Levels 2.20 2.20 |
Schedule of Comprehensive Other Postretirement Employee Benefit Expense | The components of Comprehensive OPEB Expense (Income) for the years ended December 31, 2019 , 2018 and 2017 were: DOLLARS IN MILLIONS 2019 2018 2017 Service Cost Earned During the Year $ 0.2 $ 0.2 $ 0.1 Interest Cost on Accumulated Postretirement Benefit Obligation 0.4 0.4 0.4 Amortization of Prior Service Credit (1.3 ) (1.3 ) — Amortization of Accumulated Unrecognized OPEB Gain (2.4 ) (1.8 ) (1.8 ) OPEB Income Recognized in Consolidated Statements of Income (3.1 ) (2.5 ) (1.3 ) Unrecognized OPEB Gain Arising During the Year (1.7 ) (3.0 ) (0.5 ) Prior Service Credit Arising During the Year from Plan Amendments — — (1.3 ) Amortization of Prior Service Credit 1.3 1.3 — Amortization of Accumulated Unrecognized OPEB Gain 2.4 1.8 1.8 Comprehensive OPEB Income $ (1.1 ) $ (2.4 ) $ (1.3 ) |
Schedule of Expected Benefit Payments | The following benefit payments (net of participant contributions), which consider expected future service, as appropriate, are expected to be paid: DOLLARS IN MILLIONS Years Ending December 31, 2020 2021 2022 2023 2024 2025-2029 Estimated Benefit Payments: Excluding Medicare Part D Subsidy $ 1.3 $ 1.3 $ 1.3 $ 1.2 $ 1.2 $ 4.5 Expected Medicare Part D Subsidy — — — — — — Net Estimated Benefit Payments $ 1.3 $ 1.3 $ 1.3 $ 1.2 $ 1.2 $ 4.5 |
Business Segments (Tables)
Business Segments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Segment Assets | Segment Assets at December 31, 2019 and 2018 were: DOLLARS IN MILLIONS 2019 2018 Specialty Property & Casualty Insurance $ 4,435.2 $ 3,541.0 Preferred Property & Casualty Insurance 1,549.8 1,567.7 Life & Health Insurance 5,847.9 5,117.2 Corporate and Other, Net 1,156.2 1,319.0 Total Assets $ 12,989.1 $ 11,544.9 |
Earned Premiums by Product Line | Earned Premiums by product line for the years ended December 31, 2019 , 2018 and 2017 were: DOLLARS IN MILLIONS 2019 2018 2017 Specialty Property & Casualty Insurance: Specialty Automobile $ 2,825.6 $ 1,889.5 $ 954.3 Commercial Automobile 252.8 137.9 51.4 Preferred Property & Casualty Insurance: Preferred Automobile 470.2 440.2 422.8 Homeowners 241.3 250.1 264.8 Other Personal Lines 38.8 40.4 42.7 Life & Health Insurance: Life 384.6 378.4 379.7 Accident & Health 190.9 177.5 161.7 Property 68.2 70.4 72.6 Total Earned Premiums $ 4,472.4 $ 3,384.4 $ 2,350.0 |
Segment Revenues | Segment Revenues, including a reconciliation to Total Revenues, for the years ended December 31, 2019 , 2018 and 2017 were: DOLLARS IN MILLIONS 2019 2018 2017 Segment Revenues: Specialty Property & Casualty Insurance: Earned Premiums $ 3,078.4 $ 2,027.4 $ 1,005.7 Net Investment Income 107.5 63.4 39.2 Other Income 7.0 2.4 1.1 Total Specialty Property & Casualty Insurance 3,192.9 2,093.2 1,046.0 Preferred Property & Casualty Insurance: Earned Premiums 750.3 730.7 730.3 Net Investment Income 44.1 61.8 58.9 Total Preferred Property & Casualty Insurance 794.4 792.5 789.2 Life & Health Insurance: Earned Premiums 643.7 626.3 614.0 Net Investment Income 206.4 210.9 223.2 Other Income 8.5 4.0 2.6 Total Life & Health Insurance 858.6 841.2 839.8 Total Segment Revenues 4,845.9 3,726.9 2,675.0 Income (Loss) from Change in Fair Value of Equity and Convertible Securities 138.9 (64.3 ) — Net Realized Gains on the Sales of Investments 41.9 26.4 56.5 Net Impairment Losses Recognized in Earnings (13.8 ) (4.5 ) (14.3 ) Other 26.3 40.6 6.2 Total Revenues $ 5,039.2 $ 3,725.1 $ 2,723.4 |
Segment Operating Profit | Segment Operating Profit, including a reconciliation to Income from Continuing Operations before Income Taxes, for the years ended December 31, 2019 , 2018 and 2017 was: DOLLARS IN MILLIONS 2019 2018 2017 Segment Operating Profit (Loss): Specialty Property & Casualty Insurance $ 355.9 $ 145.6 $ 80.5 Preferred Property & Casualty Insurance 52.3 28.6 (78.1 ) Life & Health Insurance 121.9 115.9 140.2 Total Segment Operating Profit 530.1 290.1 142.6 Corporate and Other Operating Profit (Loss) From: Partial Satisfaction of Judgment 20.1 35.7 — Other (31.4 ) (39.6 ) (23.7 ) Corporate and Other Operating Profit (Loss) (11.3 ) (3.9 ) (23.7 ) Adjusted Consolidated Operating Profit (Loss) 518.8 286.2 118.9 Income (Loss) from Change in Fair Value of Equity and Convertible Securities 138.9 (64.3 ) — Net Realized Gains on Sales of Investments 41.9 26.4 56.5 Net Impairment Gains (Losses) Recognized in Earnings (13.8 ) (4.5 ) (14.3 ) Acquisition Related Transaction, Integration and Other Costs (18.4 ) (44.7 ) — Loss from Early Extinguishment of Debt (5.8 ) — — Income from Continuing Operations before Income Taxes $ 661.6 $ 199.1 $ 161.1 |
Segment Net Income (Loss) | Segment Net Operating Income, including a reconciliation to Income from Continuing Operations, for the years ended December 31, 2019 , 2018 and 2017 was: DOLLARS IN MILLIONS 2019 2018 2017 Segment Net Operating Income (Loss): Specialty Property & Casualty Insurance $ 283.1 $ 115.8 $ 56.3 Preferred Property & Casualty Insurance 41.9 25.7 (45.4 ) Life & Health Insurance 98.7 91.5 91.9 Total Segment Net Operating Income (Loss) 423.7 233.0 102.8 Corporate and Other Net Operating Income (Loss) From: Effects of Tax Law Changes — 26.4 7.4 Partial Satisfaction of Judgment 15.9 28.2 — Other (21.3 ) (29.2 ) (17.7 ) Total Corporate and Other Net Operating Income (Loss) (5.4 ) 25.4 (10.3 ) Adjusted Consolidated Net Operating Income 418.3 258.4 92.5 Net Income (Loss) From: Change in Fair Value of Equity and Convertible Securities 109.7 (50.8 ) — Net Realized Gains on Sales of Investments 33.1 20.9 36.7 Net Impairment Losses Recognized in Earnings (10.9 ) (3.6 ) (9.3 ) Acquisition Related Transaction, Integration and Other Costs (14.5 ) (36.5 ) — Loss from Early Extinguishment of Debt (4.6 ) — — Income from Continuing Operations $ 531.1 $ 188.4 $ 119.9 |
Segment Amortization of Deferred Policy Acquisition Costs | Amortization of Deferred Policy Acquisition Costs by Operating Segment for the years ended December 31, 2019 , 2018 and 2017 was: DOLLARS IN MILLIONS 2019 2018 2017 Specialty Property & Casualty Insurance $ 224.9 $ 202.0 $ 150.2 Preferred Property & Casualty Insurance 120.1 117.2 114.6 Life & Health Insurance 63.3 57.9 53.5 Total Amortization $ 408.3 $ 377.1 $ 318.3 |
Catastrophe Reinsurance (Tables
Catastrophe Reinsurance (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Reinsurance Disclosures [Abstract] | |
Reinsurance Retention Policy | Coverage on individual catastrophes provided under the excess of loss reinsurance contracts effective January 1, 2017 to December 31, 2017 is provided in various layers as presented below. DOLLARS IN MILLIONS Catastrophe Losses and LAE Percentage of Coverage In Excess of Up to Retained $ — $ 50.0 — % 1st Layer of Coverage 50.0 150.0 95.0 2nd Layer of Coverage (Tranche A) 150.0 250.0 31.7 2nd Layer of Coverage (Tranche B) 150.0 350.0 63.3 Coverage on individual catastrophes provided under the excess of loss reinsurance contracts effective January 1, 2019 to December 31, 2019 is provided in various layers as presented below. DOLLARS IN MILLIONS Catastrophe Losses and LAE Percentage of Coverage In Excess of Up to Retained $ — $ 50.0 — % 1st Layer of Coverage 50.0 150.0 95.0 2nd Layer of Coverage 150.0 250.0 95.0 3rd Layer of Coverage 250.0 275.0 95.0 Coverage on individual catastrophes provided under the excess of loss reinsurance contracts effective January 1, 2018 to December 31, 2018 is provided in various layers as presented below. DOLLARS IN MILLIONS Catastrophe Losses and LAE Percentage of Coverage In Excess of Up to Retained $ — $ 50.0 — % 1st Layer of Coverage 50.0 150.0 95.0 2nd Layer of Coverage (Tranche A) 150.0 250.0 63.3 2nd Layer of Coverage (Tranche B) 150.0 350.0 31.7 Coverage provided under the 2019 aggregate property catastrophe reinsurance contract is summarized below. Aggregate Catastrophe DOLLARS IN MILLIONS In Excess of Up to Retained $ — $ 60.0 Coverage 60.0 110.0 Coverage provided under the 2018 aggregate property catastrophe reinsurance contract is summarized below. Aggregate Catastrophe DOLLARS IN MILLIONS In Excess of Up to Retained $ — $ 60.0 Coverage 60.0 110.0 |
Catastrophe Reinsurance Premiums | Reinsurance premiums for the Company’s catastrophe reinsurance programs and the FHCF Program reduced earned premiums for the years ended December 31, 2019 , 2018 and 2017 by the following: DOLLARS IN MILLIONS 2019 2018 2017 Specialty Property & Casualty Insurance $ 0.2 $ 2.6 $ 0.1 Preferred Property & Casualty Insurance 20.2 17.8 10.8 Life & Health Insurance 0.1 0.1 0.1 Total Ceded Catastrophe Reinsurance Premiums $ 20.5 $ 20.5 $ 11.0 |
Catastrophe Losses and LAE, Net Reinsurance Recoveries | Catastrophe losses and LAE (including reserve development), net of reinsurance recoveries, for the years ended December 31, 2019 , 2018 and 2017 by business segment are presented below. DOLLARS IN MILLIONS 2019 2018 2017 Specialty Property & Casualty Insurance $ 11.6 $ 4.4 $ 5.2 Preferred Property & Casualty Insurance 44.6 79.1 168.8 Life & Health Insurance 3.9 4.1 6.4 Total Catastrophe Losses and LAE $ 60.1 $ 87.6 $ 180.4 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | The valuation of assets measured at fair value in the Company’s Consolidated Balance Sheet at December 31, 2019 is summarized below. The Company has no material liabilities that are measured and reported at fair value. DOLLARS IN MILLIONS Fair Value Measurements Total Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Measured at Net Asset Value Fixed Maturities: U.S. Government and Government Agencies and Authorities $ 144.3 $ 671.6 $ — — $ 815.9 States and Political Subdivisions — 1,515.8 — — 1,515.8 Foreign Governments — 16.8 — — 16.8 Corporate Securities: Bonds and Notes — 3,450.6 409.1 — 3,859.7 Redeemable Preferred Stocks — — 6.7 — 6.7 Collateralized Loan Obligations — — 618.2 — 618.2 Other Mortgage- and Asset-backed — 78.8 10.2 — 89.0 Total Investments in Fixed Maturities 144.3 5,733.6 1,044.2 — 6,922.1 Equity Securities at Fair Value: Preferred Stocks: Finance, Insurance and Real Estate — 44.5 — — 44.5 Other Industries 0.9 13.8 — — 14.7 Common Stocks: Finance, Insurance and Real Estate 12.8 — — — 12.8 Other Industries 0.2 0.2 — — 0.4 Other Equity Interests: Exchange Traded Funds 586.8 — — — 586.8 Limited Liability Companies and Limited Partnerships — — — 248.1 248.1 Total Investments in Equity Securities at Fair Value 600.7 58.5 — 248.1 907.3 Convertible Securities at Fair Value — 37.3 — — 37.3 Total $ 745.0 $ 5,829.4 $ 1,044.2 $ 248.1 $ 7,866.7 The valuation of assets measured at fair value in the Company’s Consolidated Balance Sheet at December 31, 2018 is summarized below. DOLLARS IN MILLIONS Fair Value Measurements Total Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Measured at Net Asset Value Fixed Maturities: U.S. Government and Government Agencies and Authorities $ 156.5 $ 709.2 $ — $ — $ 865.7 States and Political Subdivisions — 1,619.1 — — 1,619.1 Foreign Governments — 5.9 — — 5.9 Corporate Securities: Bonds and Notes — 3,011.2 382.6 — 3,393.8 Collateralized Loan Obligations — 19.1 504.9 — 524.0 Other Mortgage- and Asset-backed — 5.8 9.9 — 15.7 Total Investments in Fixed Maturities 156.5 5,370.3 897.4 — 6,424.2 Equity Securities at Fair Value: Preferred Stocks: Finance, Insurance and Real Estate — 41.2 — — 41.2 Other Industries — 13.0 — — 13.0 Common Stocks: Finance, Insurance and Real Estate 10.2 — — — 10.2 Other Industries 0.2 0.5 — — 0.7 Other Equity Interests: Exchange Traded Funds 427.3 — — — 427.3 Limited Liability Companies and Limited Partnerships — — — 192.0 192.0 Total Investments in Equity Securities at Fair Value 437.7 54.7 — 192.0 684.4 Convertible Securities at Fair Value — 31.5 — — 31.5 Total $ 594.2 $ 5,456.5 $ 897.4 $ 192.0 $ 7,140.1 |
Fair Value Inputs, Assets, Quantitative Information | The table below presents quantitative information about the significant unobservable inputs utilized by the Company in determining fair values for fixed maturity investments in corporate securities classified as Level 3 at December 31, 2019 . DOLLARS IN MILLIONS Unobservable Input Total Fair Value Range of Unobservable Inputs Weighted-average Yield Investment-grade Market Yield $ 204.2 2.4 % - 8.5 % 4.1 % Non-investment-grade: Senior Debt Market Yield 123.7 2.4 - 21.5 9.1 Junior Debt Market Yield 81.3 9.6 - 18.0 13.1 Collateralized Loan Obligations (investment-grade and non-investment-grade) Market Yield 613.5 3.2 - 12.5 5.1 Other Various 21.5 Total Level 3 Fixed Maturity Investments in Corporate Securities $ 1,044.2 NOTE 22. FAIR VALUE MEASUREMENTS (Continued) The table below presents quantitative information about the significant unobservable inputs utilized by the Company in determining fair values for fixed maturity investments in corporate securities classified as Level 3 at December 31, 2018 . DOLLARS IN MILLIONS Unobservable Input Total Fair Value Range of Unobservable Inputs Weighted-average Yield Investment-grade Market Yield $ 146.7 3.7 % - 10.9 % 5.2 % Non-investment-grade: Senior Debt Market Yield 142.3 4.8 - 30.0 11.5 Junior Debt Market Yield 87.6 11.0 - 28.5 14.2 Collateralized Loan Obligations (investment-grade and non-investment-grade) Market Yield 504.9 4.1 - 13.4 6.1 Other Various 15.9 Total Level 3 Fixed Maturity Investments in Corporate Securities $ 897.4 |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation | Information by security type pertaining to the changes in the fair value of the Company’s investments classified as Level 3 for the year ended December 31, 2018 is presented below. DOLLARS IN MILLIONS Fixed Maturities Equity Securities Total Corporate Bonds and Notes States and Political Sub-divisions Redeemable Preferred Stocks Collateralized Loan Obligations Other Mortgage- Preferred and Common Stocks Other Equity Interests Balance at Beginning of Year $ 401.5 $ — $ 0.1 $ 93.2 $ — $ 27.4 $ 34.4 $ 556.6 Total Gains (Losses): Included in Consolidated Statement of Income 4.4 — (0.1 ) 2.7 — — — 7.0 Included in Other Comprehensive Income (Loss) (2.2 ) — — (16.3 ) 0.1 — — (18.4 ) Purchases 201.8 1.8 — 449.7 10.0 — — 663.3 Settlements (108.1 ) — — (58.3 ) (0.2 ) — — (166.6 ) Sales (109.5 ) — — — — — — (109.5 ) Transfers into Level 3 2.4 — — 33.9 — — — 36.3 Transfers out of Level 3 (7.7 ) (1.8 ) — — — (27.4 ) (34.4 ) (71.3 ) Balance at End of Year $ 382.6 $ — $ — $ 504.9 $ 9.9 $ — $ — $ 897.4 Information by security type pertaining to the changes in the fair value of the Company’s investments classified as Level 3 for the year ended December 31, 2019 is presented below. DOLLARS IN MILLIONS Fixed Maturities Corporate Redeemable Preferred Stocks Collateralized Loan Obligations Other Mortgage- and Asset- backed Total Balance at Beginning of Year $ 382.6 $ — $ 504.9 $ 9.9 $ 897.4 Total Gains (Losses): Included in Consolidated Statement of Income (6.8 ) — 0.6 — (6.2 ) Included in Other Comprehensive Income (Loss) 10.6 (0.1 ) 5.3 1.0 16.8 Purchases 307.0 6.8 119.2 — 433.0 Settlements (72.9 ) — (28.0 ) (0.7 ) (101.6 ) Sales (211.4 ) — (2.9 ) — (214.3 ) Transfers into Level 3 — — 19.1 — 19.1 Transfers out of Level 3 — — — — — Balance at End of Year $ 409.1 $ 6.7 $ 618.2 $ 10.2 $ 1,044.2 |
Fair Value, by Balance Sheet Grouping | Presented below are the carrying values and fair value estimates of financial instruments not carried at fair value. December 31, 2019 December 31, 2018 (Dollars in Millions) Carrying Value Fair Value Carrying Value Fair Value Financial Assets: Loans to Policyholders $ 305.6 $ 612.4 $ 300.6 $ 542.6 Short-term Investments 470.9 470.9 286.1 286.1 Mortgage Loans 27.5 27.5 — — Financial Liabilities: Debt 778.4 820.2 909.0 911.2 Policyholder Contract Liabilities 243.4 243.4 10.0 10.0 |
Quarterly Financial Informati_2
Quarterly Financial Information (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Data [Abstract] | |
Schedule of Quarterly Financial Information | Three Months Ended (Unaudited) Year Ended DOLLARS IN MILLIONS, EXCEPT PER SHARE AMOUNTS Mar 31, Jun 30, Sep 30, Dec 31, Dec 31, Revenues: Earned Premiums $ 1,074.8 $ 1,116.6 $ 1,135.2 $ 1,145.8 $ 4,472.4 Net Investment Income 82.7 96.0 91.7 93.9 364.3 Other Income 1.9 22.7 7.2 3.7 35.5 Income (Loss) from Changes in Fair Value of Equity and Convertible Securities 64.4 25.5 9.8 39.2 138.9 Net Realized Gains on Sales of Investments 16.1 21.3 1.7 2.8 41.9 Other-than-temporary Impairment Losses: Total Other-than-temporary Impairment Losses (3.5 ) (6.7 ) (1.8 ) (1.7 ) (13.7 ) Portion of Losses Recognized in Other Comprehensive Income (0.1 ) — — — (0.1 ) Net Impairment Losses Recognized in Earnings (3.6 ) (6.7 ) (1.8 ) (1.7 ) (13.8 ) Total Revenues 1,236.3 1,275.4 1,243.8 1,283.7 5,039.2 Expenses: Policyholders’ Benefits and Incurred Losses and Loss Adjustment Expenses 765.4 825.4 782.6 814.9 3,188.3 Insurance Expenses 234.8 263.5 256.0 265.4 1,019.7 Loss from Early Extinguishment of Debt — — 5.8 — 5.8 Interest and Other Expenses 41.4 38.0 37.9 46.5 163.8 Total Expenses 1,041.6 1,126.9 1,082.3 1,126.8 4,377.6 Income from Continuing Operations before Income Taxes 194.7 148.5 161.5 156.9 661.6 Income Tax Expense (39.4 ) (26.4 ) (32.5 ) (32.2 ) (130.5 ) Net Income $ 155.3 $ 122.1 $ 129.0 $ 124.7 $ 531.1 Net Income (Loss) Per Unrestricted Share: Basic $ 2.38 $ 1.87 $ 1.93 $ 1.87 $ 8.04 Diluted $ 2.35 $ 1.84 $ 1.91 $ 1.85 $ 7.96 Dividends Paid to Shareholders Per Share $ 0.25 $ 0.25 $ 0.25 $ 0.28 $ 1.03 The sum of quarterly per share amounts may not equal per share amounts for the year due to differences in weighted-average shares and/or equivalent shares outstanding for each of the periods presented. NOTE 25. QUARTERLY FINANCIAL INFORMATION (Unaudited) (Continued) Three Months Ended (Unaudited) Year Ended DOLLARS IN MILLIONS, EXCEPT PER SHARE AMOUNTS Mar 31, Jun 30, Sep 30, Dec 31, Dec 31, Revenues: Earned Premiums $ 609.8 $ 658.1 $ 1,052.9 $ 1,063.6 $ 3,384.4 Net Investment Income 79.2 78.4 92.0 91.3 340.9 Other Income 1.2 1.2 37.8 2.0 42.2 Income (Loss) from Changes in Fair Value of Equity and Convertible Securities 0.7 0.4 11.0 (76.4 ) (64.3 ) Net Realized Gains on Sales of Investments 2.6 3.8 3.6 16.4 26.4 Other-than-temporary Impairment Losses: Total Other-than-temporary Impairment Losses (0.5 ) — (1.8 ) (2.2 ) (4.5 ) Portion of Losses Recognized in Other Comprehensive Income — — — — — Net Impairment Losses Recognized in Earnings (0.5 ) — (1.8 ) (2.2 ) (4.5 ) Total Revenues 693.0 741.9 1,195.5 1,094.7 3,725.1 Expenses: Policyholders’ Benefits and Incurred Losses and Loss Adjustment Expenses 436.9 499.5 757.3 772.8 2,466.5 Insurance Expenses 160.1 171.2 296.0 273.2 900.5 Interest and Other Expenses 29.0 25.7 61.7 42.6 159.0 Total Expenses 626.0 696.4 1,115.0 1,088.6 3,526.0 Income (Loss) from Continuing Operations before Income Taxes 67.0 45.5 80.5 6.1 199.1 Income Tax Benefit (Expense) (13.4 ) (8.0 ) 11.8 (1.1 ) (10.7 ) Income from Continuing Operations 53.6 37.5 92.3 5.0 188.4 Income (Loss) from Discontinued Operations 0.2 0.1 (0.1 ) 1.5 1.7 Net Income $ 53.8 $ 37.6 $ 92.2 $ 6.5 $ 190.1 Income from Continuing Operations Per Unrestricted Share: Basic $ 1.03 $ 0.73 $ 1.42 $ 0.08 $ 3.22 Diluted $ 1.02 $ 0.73 $ 1.40 $ 0.08 $ 3.19 Net Income Per Unrestricted Share: Basic $ 1.03 $ 0.73 $ 1.42 $ 0.10 $ 3.25 Diluted $ 1.02 $ 0.73 $ 1.40 $ 0.10 $ 3.22 Dividends Paid to Shareholders Per Share $ 0.24 $ 0.24 $ 0.24 $ 0.24 $ 0.96 The sum of quarterly per share amounts may not equal per share amounts for the year due to differences in weighted-average shares and/or equivalent shares outstanding for each of the periods presented. |
Schedule 2 - Parent Company F_2
Schedule 2 - Parent Company Financial Statements (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Condensed Financial Information Disclosure [Abstract] | |
Parent Company Balance Sheets | KEMPER CORPORATION PARENT COMPANY BALANCE SHEETS (Dollars in Millions) December 31, 2019 2018 ASSETS Investments in Subsidiaries $ 4,383.7 $ 3,736.0 Fixed Maturities at Fair Value (Amortized Cost: 2018 – $12.6) — 12.6 Equity Securities at Fair Value 55.7 20.4 Short-term Investments 89.3 64.6 Cash 61.8 2.9 Other Receivables 21.9 5.7 Other Assets 21.9 14.4 Right-of-Use Assets 18.6 — Total Assets $ 4,652.9 $ 3,856.6 LIABILITIES AND SHAREHOLDERS’ EQUITY Term Loan due June 29, 2020 (Fair Value: 2018 – $35.0) — 34.9 Term Loan due July 5, 2023 (Fair Value: 2019 – $50.0) 49.9 — Senior Notes Payable, 4.35% due 2025 (Fair Value: 2019 – $478.6; 2018 – $444.2) 448.6 448.4 Subordinated Debentures due 2054 (Fair Value: 2018 – $151.1) — 144.2 Current Income Tax Liability 55.3 40.5 Deferred Income Tax Liability 32.2 20.2 Liabilities for Benefit Plans 44.3 98.2 Right-of-Use Liabilities 31.3 — Accrued Expenses and Other Liabilities 19.0 20.1 Total Liabilities 680.6 806.5 Shareholders’ Equity: Common Stock 6.7 6.5 Additional Paid-in Capital 1,819.2 1,666.3 Retained Earnings 1,810.3 1,355.5 Accumulated Other Comprehensive Income 336.1 21.8 Total Shareholders’ Equity 3,972.3 3,050.1 Total Liabilities and Shareholders’ Equity $ 4,652.9 $ 3,856.6 See Accompanying Report of Independent Registered Public Accounting Firm. |
Parent Company Statements of Income | KEMPER CORPORATION PARENT COMPANY STATEMENTS OF INCOME (Dollars in Millions) For the Year Ended December 31, 2019 2018 2017 Net Investment Income $ 2.1 $ 2.5 $ 3.0 Income from Change in Fair Value of Equity Securities 1.6 1.4 — Net Realized Gains (Losses) on Sales of Investments 0.3 (0.7 ) 0.6 Total Revenues 4.0 3.2 3.6 Interest Expense 28.5 37.6 36.6 Loss from Early Extinguishment of Debt 5.8 — — Other Operating (Benefits) Expenses 4.0 26.3 (5.1 ) Total Operating Expenses 38.3 63.9 31.5 Loss before Income Taxes and Equity in Net Income of Subsidiaries (34.3 ) (60.7 ) (27.9 ) Income Tax Benefit 9.4 12.2 21.2 Loss before Equity in Net Income of Subsidiaries (24.9 ) (48.5 ) (6.7 ) Equity in Net Income of Subsidiaries 556.0 238.6 127.6 Net Income $ 531.1 $ 190.1 $ 120.9 See Accompanying Report of Independent Registered Public Accounting Firm. |
Parent Company Statements of Comprehensive Income | KEMPER CORPORATION PARENT COMPANY STATEMENTS OF COMPREHENSIVE INCOME (Dollars in Millions) For the Year Ended December 31, 2019 2018 2017 Net Income $ 531.1 $ 190.1 $ 120.9 Other Comprehensive Income (Loss): Unrealized Holding Gains (Losses) Arising During the Year: Securities Held by Subsidiaries 433.2 (214.1 ) 119.5 Securities Held by Parent 0.2 (0.1 ) (0.4 ) Reclassification Adjustment for Amounts Included in Net Income: Securities Held by Subsidiaries (27.9 ) (21.9 ) (35.3 ) Securities Held by Parent (0.2 ) — — Unrealized Holding Gains (Losses) 405.3 (236.1 ) 83.8 Unrecognized Postretirement Benefit Costs Arising During the Year: Securities Held by Subsidiaries (0.6 ) — — Securities Held by Parent (4.2 ) (8.0 ) 3.9 Reclassification Adjustments for Amounts Included in Net Income: Amortization of Unrecognized Postretirement Benefits (Costs) (3.0 ) 1.1 (0.6 ) Total Reclassification Adjustments for Amounts Included in Net Income (3.0 ) 1.1 (0.6 ) Net Unrecognized Postretirement Benefit Costs (7.8 ) (6.9 ) 3.3 Foreign Currency Translation Adjustments on Investments Held by Subsidiaries — 0.3 1.7 Gains (Losses) on Cash Flow Hedge 0.4 1.2 (6.7 ) Other Comprehensive Income (Loss) before Income Taxes 397.9 (241.5 ) 82.1 Income Tax Benefit (Expense): Unrealized Holding Gains and Losses Arising During the Year: Securities Held by Subsidiaries (91.0 ) 45.0 (38.3 ) Securities Held by Parent — — 0.1 Reclassification Adjustment for Amounts Included in Net Income: Securities Held by Subsidiaries 5.8 4.6 12.3 Unrealized Holding Gains and Losses (85.2 ) 49.6 (25.9 ) Unrecognized Postretirement Benefit Costs Arising During the Year 1.0 1.7 (0.8 ) Reclassification Adjustments for Amounts Included in Net Income: Amortization of Unrecognized Postretirement Benefit Costs 0.7 (0.2 ) 0.2 Total Reclassification Adjustments for Amounts Included in Net Income 0.7 (0.2 ) 0.2 Net Unrecognized Postretirement Benefit Costs 1.7 1.5 (0.6 ) Foreign Currency Translation Adjustments on Investments Held by Subsidiaries — (0.1 ) (0.6 ) Gains (Losses) on Cash Flow Hedge (0.1 ) (0.3 ) 2.4 Income Tax Benefit (Expense) (83.6 ) 50.7 (24.7 ) Other Comprehensive Income (Loss) 314.3 (190.8 ) 57.4 Total Comprehensive Income (Loss) $ 845.4 $ (0.7 ) $ 178.3 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, 2019 2018 2017 Operating Activities: Net Income $ 531.1 $ 190.1 $ 120.9 Adjustment Required to Reconcile Net Income to Net Cash Provided by Operations: Equity in Net Income of Subsidiaries (556.0 ) (238.6 ) (127.6 ) Cash Dividends from Subsidiaries 239.0 130.4 108.1 Cash Contribution to Defined Benefit Plan (55.3 ) (5.0 ) — Increase in Value of Equity Securities at Fair Value (1.6 ) (1.4 ) — Net Realized (Gains) Losses on Sales of Investments (0.3 ) 0.7 (0.6 ) Loss from Early Extinguishment of Debt 5.8 — — Other, Net 9.8 29.6 0.7 Net Cash Provided by Operating Activities 172.5 105.8 101.5 Investing Activities: Capital Contributed to Subsidiaries (83.0 ) (20.0 ) — Capital Distribution from Subsidiary 85.0 176.0 — Sales, Paydowns and Maturities of Fixed Maturities 12.7 (0.2 ) 45.7 Purchases of Equity Securities (48.9 ) (2.3 ) — Sales of Equity Securities 15.3 67.5 — Sales of Fair Value Option Investments — — 42.2 Purchases of Fair Value Option Investments — — (7.0 ) Acquisition of Business — (564.6 ) — Change in Short-term Investments (23.3 ) 253.4 15.6 Net Cash Provided (Used) by Investing Activities (42.2 ) (90.2 ) 96.5 Financing Activities: Notes Payable Proceeds: Net Proceeds from Issuance of Debt 49.9 249.4 200.2 Repayments of Debt (185.0 ) (215.0 ) (360.0 ) Proceeds from Issuance of Common Stock, Net of Transaction Costs 127.5 — — Cash Dividends Paid (67.8 ) (56.4 ) (49.5 ) Proceeds from Shares Issued under Employee Stock Purchase Plan 1.6 — — Cash Exercise of Stock Options 2.4 0.9 4.0 Net Cash Used by Financing Activities (71.4 ) (21.1 ) (205.3 ) Increase (Decrease) in Cash 58.9 (5.5 ) (7.3 ) Cash, Beginning of Year 2.9 8.4 15.7 Cash, End of Year $ 61.8 $ 2.9 $ 8.4 See Accompanying Report of Independent Registered Public Accounting Firm. |
Lease, Cost | Supplemental cash flow information related to the Company’s operating leases for the year-ended December 31, 2019 is as follows: DOLLARS IN MILLIONS 2019 Operating Cash Flows from Operating Leases (Fixed Payments) $ 20.0 Operating Cash Flows from Operating Leases (Liability Reduction) 17.6 Financing Cash Flows from Finance Leases 0.7 Right-of-Use Assets Obtained in Exchange for New Operating Lease Liabilities 25.9 Significant judgments and assumptions for determining lease asset and liability as December 31, 2019 are presented below. Weighted-average Remaining Lease Term - Finance Leases 1.7 years Weighted-average Remaining Lease Term - Operating Leases 7.0 years Weighted-average Discount Rate - Finance Leases 4.0 % Weighted-average Discount Rate - Operating Leases 3.9 % Lease expenses are primarily included in insurance expenses in the Consolidated Statements of Income. Additional information regarding the Company’s operating leases is presented below. DOLLARS IN MILLIONS 2019 Lease Cost: Amortization of Right-of-Use Assets - Finance Leases $ 0.7 Operating Lease Cost 20.7 Short-Term Lease Cost (1) 0.1 Total Expense 21.5 Less: Sublease Income (2) 0.1 Total Lease Cost $ 21.4 (1) - Leases with an initial term of twelve months of less are not recorded on the balance sheet. (2) - Sublease income consists of rent from third parties of office space and is recognized as part of other income in the Consolidated Statements of Income. The following table presents operating lease ROU assets and lease liabilities. DOLLARS IN MILLIONS 2019 Operating Lease Right-of-Use Assets $ 75.6 Operating Lease Liabilities 93.2 The following table presents operating lease ROU assets and lease liabilities at December 31, 2019. DOLLARS IN MILLIONS 2019 Operating Lease Right-of-Use Assets $ 18.6 Operating Lease Liabilities 31.3 Supplemental cash flow information related to Kemper’s operating leases for the year-ended December 31, 2019 follows. DOLLARS IN MILLIONS 2019 Operating Cash Flows from Operating Leases (Fixed Payments) $ 1.2 Operating Cash Flows from Operating Leases (Liability Reduction) 1.0 Right-of-Use Assets Obtained in Exchange for New Operating Lease Liabilities 7.9 Significant judgments and assumptions for determining lease asset and liability as December 31, 2019 are presented below. Weighted-average Remaining Lease Term - Operating Leases 13.0 years Weighted-average Discount Rate - Operating Leases 4.0 % |
Schedule of Future Minimum Lease Payments for Operating Leases | Future minimum lease payments under finance and operating leases at December 31, 2019 were: DOLLARS IN MILLIONS Finance Leases Operating Leases 2020 $ 0.3 $ 20.5 2021 0.2 19.3 2022 — 17.0 2023 — 14.7 2024 — 8.3 2025 and Thereafter — 28.1 Total Future Payments $ 0.5 $ 107.9 Less Discount — 14.7 Present Value of Minimum Lease Payments $ 0.5 $ 93.2 NOTE 9. LEASES (Continued) Future minimum lease payments under finance and operating leases at December 31, 2018 were: DOLLARS IN MILLIONS Finance Leases Operating Leases 2019 $ 0.7 $ 20.5 2020 0.7 18.4 2021 0.3 16.9 2022 0.2 15.0 2023 — 12.5 2024 and Thereafter — 27.1 Total Future Payments $ 1.9 $ 110.4 Less Imputed Interest — Present Value of Minimum Lease Payments $ 1.9 Future minimum operating lease payments at December 31, 2019 were: DOLLARS IN MILLIONS Operating Leases 2020 $ 2.1 2021 3.5 2022 3.7 2023 3.5 2024 2.5 2025 and Thereafter 25.6 Total Future Payments $ 40.9 Less Discount 9.6 Present Value of Minimum Lease Payments $ 31.3 |
Summary of Accounting Policie_3
Summary of Accounting Policies and Accounting Changes - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Jan. 01, 2019 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||
Policyholders’ Benefits and Incurred Losses and Loss Adjustment Expenses | $ 814.9 | $ 782.6 | $ 825.4 | $ 765.4 | $ 772.8 | $ 757.3 | $ 499.5 | $ 436.9 | $ 3,188.3 | $ 2,466.5 | $ 1,837.4 | ||
Reinsurance recoverables | 122.6 | 158.3 | 122.6 | 158.3 | |||||||||
Accrued investment income | 78.7 | 77.9 | 78.7 | 77.9 | |||||||||
Corporate-owned life insurance | 217 | 59.3 | 217 | 59.3 | |||||||||
Definite-lived intangible assets | 280.6 | 261 | 280.6 | 261 | |||||||||
Present Value of Minimum Lease Payments | $ 0.5 | 1.9 | $ 0.5 | 1.9 | |||||||||
Life Insurance | Minimum | |||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||
Interest rate assumptions | 3.00% | 3.00% | |||||||||||
Life Insurance | Maximum | |||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||
Interest rate assumptions | 7.00% | 7.00% | |||||||||||
Change in Accounting Estimate, Use of Death Master File in Reserving Process | |||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||
Policyholders’ Benefits and Incurred Losses and Loss Adjustment Expenses | $ 21 | $ 77.8 | |||||||||||
Value of Business Acquired | |||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||
Definite-lived intangible assets | $ 24.1 | 30.2 | 24.1 | 30.2 | |||||||||
Customer Relationships | |||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||
Definite-lived intangible assets | 4.3 | 6.7 | 4.3 | 6.7 | |||||||||
Agent Relationships | |||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||
Definite-lived intangible assets | $ 62.5 | $ 68 | $ 62.5 | $ 68 | |||||||||
Accounting Standards Update 2016-02 | |||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||
Right-of-use asset | $ 66.5 | ||||||||||||
Present Value of Minimum Lease Payments | 82.5 | ||||||||||||
Deferred rent liability | $ 16 |
Acquisition of Business - Narra
Acquisition of Business - Narrative (Details) - USD ($) | Dec. 28, 2018 | Jul. 13, 2018 | Jul. 02, 2018 | Jun. 29, 2018 | May 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Business Acquisition [Line Items] | ||||||||
Repayments of secured debt | $ 383,600,000 | $ 2,500,000 | $ 2,900,000 | |||||
Repayments of debt | $ 215,000,000 | $ 35,000,000 | ||||||
Goodwill | 1,114,000,000 | $ 1,112,400,000 | ||||||
Infinity Property and Casualty Corporation | ||||||||
Business Acquisition [Line Items] | ||||||||
Percentage of voting interests acquired | 100.00% | |||||||
Total consideration transferred | $ 1,500,000,000 | |||||||
Business acquisition, interest issued (in shares) | 13,184,107 | |||||||
Business acquisition, fair value of interests issued | $ 982,500,000 | |||||||
Share price | $ 74.53 | |||||||
Cash consideration | $ 564,600,000 | |||||||
Assumed legal and tax accruals | 1,800,000 | |||||||
Acquired current income tax assets | 200,000 | |||||||
Goodwill | 791,000,000 | $ 1,600,000 | ||||||
Secured Debt | Infinity Property and Casualty Corporation | ||||||||
Business Acquisition [Line Items] | ||||||||
Borrowings | $ 110,000,000 | $ 250,000,000 | ||||||
Repayments of secured debt | $ 110,000,000 | |||||||
Restricted Stock Units (RSUs) | ||||||||
Business Acquisition [Line Items] | ||||||||
Business acquisition, interest issued (in shares) | 44,010 | |||||||
Restricted Stock Units (RSUs) | Infinity Property and Casualty Corporation | ||||||||
Business Acquisition [Line Items] | ||||||||
Business acquisition, fair value of interests issued | $ 3,300,000 | |||||||
Consideration related to pre-close activities | 1,600,000 | |||||||
Consideration related to future services | $ 1,700,000 |
Acquisition of Business - Purch
Acquisition of Business - Purchase Price Allocation (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Jul. 02, 2018 |
Business Acquisition [Line Items] | |||
Goodwill | $ 1,114 | $ 1,112.4 | |
Infinity Property and Casualty Corporation | |||
Business Acquisition [Line Items] | |||
Investments | $ 1,569.3 | ||
Short-term Investments at Cost which Approximates Fair Value Investments | 98.8 | ||
Cash | 4 | ||
Receivables from Policyholders | 583.4 | ||
Other Receivables | 31.7 | ||
Value of Intangible Assets Acquired (Reported in Other Assets) | 262.7 | ||
Current Income Tax Assets | 1 | ||
Goodwill | $ 1.6 | 791 | |
Other Assets | 102.1 | ||
Property and Casualty Insurance Reserves | (717.2) | ||
Unearned Premiums | (715.6) | ||
Debt | (282.1) | ||
Deferred Income Tax Liabilities | (10.8) | ||
Accrued Expenses and Other Liabilities | (169.6) | ||
Total Purchase Price | $ 1,548.7 |
Investments - Amortized Cost an
Investments - Amortized Cost and Estimated Fair Value of investments (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 6,372.7 | $ 6,284.5 |
Gross Unrealized Gains | 570.2 | 226.3 |
Gross Unrealized Losses | (20.8) | (86.6) |
Fair Value | 6,922.1 | 6,424.2 |
United States Government and Government Agencies and Authorities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 784.7 | 865.9 |
Gross Unrealized Gains | 32.5 | 14.8 |
Gross Unrealized Losses | (1.3) | (15) |
Fair Value | 815.9 | 865.7 |
States and Political Subdivisions | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 1,386.4 | 1,553.7 |
Gross Unrealized Gains | 130.5 | 74 |
Gross Unrealized Losses | (1.1) | (8.6) |
Fair Value | 1,515.8 | 1,619.1 |
Foreign Governments | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 17.2 | 6.5 |
Gross Unrealized Gains | 1.2 | 0 |
Gross Unrealized Losses | (1.6) | (0.6) |
Fair Value | 16.8 | 5.9 |
Corporate Bonds and Notes | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 3,465 | 3,307.8 |
Gross Unrealized Gains | 401.8 | 135.1 |
Gross Unrealized Losses | (7.1) | (49.1) |
Fair Value | 3,859.7 | 3,393.8 |
Redeemable Preferred Stocks | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 6.8 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | (0.1) | |
Fair Value | 6.7 | |
Collateralized Loan Obligations | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 624.6 | 535.7 |
Gross Unrealized Gains | 2.1 | 1.5 |
Gross Unrealized Losses | (8.5) | (13.2) |
Fair Value | 618.2 | 524 |
Other Mortgage- and Asset-backed | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 88 | 14.9 |
Gross Unrealized Gains | 2.1 | 0.9 |
Gross Unrealized Losses | (1.1) | (0.1) |
Fair Value | $ 89 | $ 15.7 |
Investments - Narrative (Detail
Investments - Narrative (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Debt and Equity Securities, FV-NI [Line Items] | |||
Other receivables | $ 219,700,000 | $ 245,400,000 | |
Mortgage- and Asset-backed Securities Not Due at a Single Maturity Date | 1,302,300,000 | ||
Debt securities, available-for-sale, continuous unrealized loss position, less than twelve months, securities that have had recognized credit losses in earnings, aggregate losses | (300,000) | 0 | |
Available-for-sale-securities, continuous unrealized loss position, less than twelve months, securities that have had recognized credit losses in earnings, aggregate losses | 0 | 0 | |
Equity securities, FV-NI, unrealized gain (loss) | 126,000,000 | ||
Decrease in carrying value due to observable transactions | 500,000 | ||
Debt and equity securities, realized gain (loss), excluding other-than-temporary impairment | 100,000 | ||
Cumulative increases in the carrying value due to observable transactions | 0 | ||
Cumulative decreases in the carrying value due to observable transactions | 0 | ||
Debt and equity securities, gain (loss), excluding other-than-temporary impairment loss | 5,000,000 | ||
Equity method investment, summarized financial information, assets | 2,368,100,000 | 2,805,300,000 | $ 2,393,700,000 |
Equity method investment, summarized financial information, liabilities | 817,200,000 | 1,030,700,000 | 899,700,000 |
Equity method investment, summarized financial information, net income (loss) | 78,000,000 | 130,400,000 | $ 209,300,000 |
Equity Method Limited Liability Investments at Cost Plus Cumulative Undistributed Earnings | 220,400,000 | 187,000,000 | |
Outstanding commitments to fund equity method limited liability investments | 97,200,000 | ||
Investments in Fixed Maturities | |||
Debt and Equity Securities, FV-NI [Line Items] | |||
Other receivables | 1,000,000 | 500,000 | |
Other liabilities | 19,500,000 | 10,500,000 | |
Debt securities, available-for-sale, unrealized loss position, accumulated loss | 20,800,000 | 86,600,000 | |
Unrealized loss position for 12 months or longer | 13,300,000 | 22,000,000 | |
Government National Mortgage Association Certificates and Obligations (GNMA) | |||
Debt and Equity Securities, FV-NI [Line Items] | |||
Mortgage- and Asset-backed Securities Not Due at a Single Maturity Date | 575,900,000 | ||
Federal National Mortgage Association Certificates and Obligations (FNMA) | |||
Debt and Equity Securities, FV-NI [Line Items] | |||
Mortgage- and Asset-backed Securities Not Due at a Single Maturity Date | 7,100,000 | ||
Federal Home Loan Mortgage Corporation Certificates and Obligations (FHLMC) | |||
Debt and Equity Securities, FV-NI [Line Items] | |||
Mortgage- and Asset-backed Securities Not Due at a Single Maturity Date | 12,200,000 | ||
Other Non-Governmental Issuers | |||
Debt and Equity Securities, FV-NI [Line Items] | |||
Mortgage- and Asset-backed Securities Not Due at a Single Maturity Date | 707,100,000 | ||
Investment-grade | Investments in Fixed Maturities | |||
Debt and Equity Securities, FV-NI [Line Items] | |||
Debt securities, available-for-sale, unrealized loss position, accumulated loss | 9,100,000 | 69,500,000 | |
Non-investment-grade | Investments in Fixed Maturities | |||
Debt and Equity Securities, FV-NI [Line Items] | |||
Debt securities, available-for-sale, unrealized loss position, accumulated loss | $ 11,700,000 | $ 17,100,000 | |
Percentage of unrealized loss position to amortized cost basis of available for sale security average | 5.00% | 5.00% |
Investments - Schedule of Contr
Investments - Schedule of Contractual Maturity (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Amortized Cost | ||
Due in One Year or Less | $ 82.5 | |
Due after One Year to Five Years | 882.3 | |
Due after Five Years to Ten Years | 1,581.7 | |
Due after Ten Years | 2,535.3 | |
Mortgage- and Asset-backed Securities Not Due at a Single Maturity Date | 1,290.9 | |
Amortized Cost | 6,372.7 | $ 6,284.5 |
Fair Value | ||
Due in One Year or Less | 85.1 | |
Due after One Year to Five Years | 909.2 | |
Due after Five Years to Ten Years | 1,708.9 | |
Due after Ten Years | 2,916.6 | |
Mortgage- and Asset-backed Securities Not Due at a Single Maturity Date | 1,302.3 | |
Investments in Fixed Maturities | $ 6,922.1 | $ 6,424.2 |
Investments - Aging of Unrealiz
Investments - Aging of Unrealized Losses on Investments in Fixed Maturities (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
United States Government and Government Agencies and Authorities | ||
Fair Value | ||
Less Than 12 Months | $ 118.5 | $ 401.1 |
12 Months or Longer | 5.1 | 79 |
Total | 123.6 | 480.1 |
Unrealized Losses | ||
Less Than 12 Months | (1.3) | (7.6) |
12 Months or Longer | 0 | (7.4) |
Total | (1.3) | (15) |
States and Political Subdivisions | ||
Fair Value | ||
Less Than 12 Months | 63 | 299.4 |
12 Months or Longer | 5.4 | 102.6 |
Total | 68.4 | 402 |
Unrealized Losses | ||
Less Than 12 Months | (0.7) | (5) |
12 Months or Longer | (0.4) | (3.6) |
Total | (1.1) | (8.6) |
Foreign Governments | ||
Fair Value | ||
Less Than 12 Months | 1 | 4.9 |
12 Months or Longer | 3.1 | 0 |
Total | 4.1 | 4.9 |
Unrealized Losses | ||
Less Than 12 Months | (0.3) | (0.6) |
12 Months or Longer | (1.3) | 0 |
Total | (1.6) | (0.6) |
Corporate Bonds and Notes | ||
Fair Value | ||
Less Than 12 Months | 160 | 1,326 |
12 Months or Longer | 70.7 | 116.8 |
Total | 230.7 | 1,442.8 |
Unrealized Losses | ||
Less Than 12 Months | (2.1) | (38.2) |
12 Months or Longer | (5) | (10.9) |
Total | (7.1) | (49.1) |
Redeemable Preferred Stocks | ||
Fair Value | ||
Less Than 12 Months | 5.5 | |
12 Months or Longer | 0 | |
Total | 5.5 | |
Unrealized Losses | ||
Less Than 12 Months | (0.1) | |
12 Months or Longer | 0 | |
Total | (0.1) | |
Collateralized Loan Obligations | ||
Fair Value | ||
Less Than 12 Months | 95.5 | 439.2 |
12 Months or Longer | 355.6 | 0 |
Total | 451.1 | 439.2 |
Unrealized Losses | ||
Less Than 12 Months | (1.9) | (13.2) |
12 Months or Longer | (6.6) | 0 |
Total | (8.5) | (13.2) |
Other Mortgage- and Asset-backed | ||
Fair Value | ||
Less Than 12 Months | 72.8 | 0.2 |
12 Months or Longer | 0 | 4.5 |
Total | 72.8 | 4.7 |
Unrealized Losses | ||
Less Than 12 Months | (1.1) | 0 |
12 Months or Longer | 0 | (0.1) |
Total | (1.1) | (0.1) |
Investments in Fixed Maturities | ||
Fair Value | ||
Less Than 12 Months | 516.3 | 2,470.8 |
12 Months or Longer | 439.9 | 302.9 |
Total | 956.2 | 2,773.7 |
Unrealized Losses | ||
Less Than 12 Months | (7.5) | (64.6) |
12 Months or Longer | (13.3) | (22) |
Total | $ (20.8) | $ (86.6) |
Investments - OTTI losses Recog
Investments - OTTI losses Recognized in Accumulated Other Comprehensive Income (Details) - Fixed Maturities: - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Roll Forward] | |||
Cumulative Balance of Pre-tax Credit Losses Recognized in Retained Earnings at Beginning of Year | $ 1.1 | $ 1.6 | $ 1.4 |
Pre-tax Credit Losses on Fixed Maturities without Pre-tax Credit Losses Included in Cumulative Balance at Beginning of Year | 0.2 | 0 | 1.2 |
Reductions for Change in Impairment Status: | |||
From Status of Credit Loss to Status of Intent-to-sell or Required-to-sell | 0 | (0.5) | (0.7) |
Reductions for Investments Sold During Year | (0.1) | 0 | (0.3) |
Cumulative Balance of Pre-tax Credit Losses Recognized in Retained Earnings at End of Year | $ 1.2 | $ 1.1 | $ 1.6 |
Investments - Other Investments
Investments - Other Investments Carrying Values (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Investments, Debt and Equity Securities [Abstract] | ||
Loans to Policyholders at Unpaid Principal | $ 305.6 | $ 300.6 |
Real Estate at Depreciated Cost | 111.4 | 114.2 |
Mortgage Loans | 27.5 | 0 |
Total Investments | $ 444.5 | $ 414.8 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Schedule of Goodwill by Segment (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Goodwill [Roll Forward] | ||
Goodwill | $ 1,114 | $ 1,112.4 |
Specialty Property & Casualty Insurance | ||
Goodwill [Roll Forward] | ||
Goodwill | 845 | 843.4 |
Preferred Property & Casualty Insurance | ||
Goodwill [Roll Forward] | ||
Goodwill | 49.6 | 49.6 |
Life & Health Insurance | ||
Goodwill [Roll Forward] | ||
Goodwill | $ 219.4 | $ 219.4 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Schedule of Definite and Indefinite Life Intangible Assets (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Finite-Lived Intangible Assets [Line Items] | ||
Total Definite Life Intangible Assets | $ 280.6 | $ 261 |
Total Indefinite Life Intangible Assets | 47.8 | 47.8 |
Total Intangible Assets | 328.4 | 308.8 |
Trade Names | ||
Finite-Lived Intangible Assets [Line Items] | ||
Total Indefinite Life Intangible Assets | 5.2 | 5.2 |
Insurance Licenses | ||
Finite-Lived Intangible Assets [Line Items] | ||
Total Indefinite Life Intangible Assets | 42.6 | 42.6 |
Value of Business Acquired | ||
Finite-Lived Intangible Assets [Line Items] | ||
Total Definite Life Intangible Assets | 24.1 | 30.2 |
Customer Relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Total Definite Life Intangible Assets | 4.3 | 6.7 |
Agent Relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Total Definite Life Intangible Assets | 62.5 | 68 |
Trade Names | ||
Finite-Lived Intangible Assets [Line Items] | ||
Total Definite Life Intangible Assets | 0 | 7 |
Internal-Use Software | ||
Finite-Lived Intangible Assets [Line Items] | ||
Total Definite Life Intangible Assets | $ 189.7 | $ 149.1 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Amortization of definite lived intangible assets | $ 37.8 | $ 166.4 |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets - Schedule of Future Amortization Expense (Details) $ in Millions | Dec. 31, 2019USD ($) |
Finite-Lived Intangible Assets [Line Items] | |
Definite-life intangible assets, amortization expense, 2020 | $ 34 |
Definite-life intangible assets, amortization expense, 2021 | 28 |
Definite-life intangible assets, amortization expense, 2022 | 26.2 |
Definite-life intangible assets, amortization expense, 2023 | 24.5 |
Definite-life intangible assets, amortization expense, 2024 | 21.8 |
Customer Relationships | |
Finite-Lived Intangible Assets [Line Items] | |
Definite-life intangible assets, amortization expense, 2020 | 0.9 |
Definite-life intangible assets, amortization expense, 2021 | 0.8 |
Definite-life intangible assets, amortization expense, 2022 | 0.6 |
Definite-life intangible assets, amortization expense, 2023 | 0.5 |
Definite-life intangible assets, amortization expense, 2024 | 0.4 |
Agent Relationships | |
Finite-Lived Intangible Assets [Line Items] | |
Definite-life intangible assets, amortization expense, 2020 | 5 |
Definite-life intangible assets, amortization expense, 2021 | 5 |
Definite-life intangible assets, amortization expense, 2022 | 5 |
Definite-life intangible assets, amortization expense, 2023 | 5 |
Definite-life intangible assets, amortization expense, 2024 | 5 |
Internal-Use Software | |
Finite-Lived Intangible Assets [Line Items] | |
Definite-life intangible assets, amortization expense, 2020 | 24.1 |
Definite-life intangible assets, amortization expense, 2021 | 19.1 |
Definite-life intangible assets, amortization expense, 2022 | 17.9 |
Definite-life intangible assets, amortization expense, 2023 | 16.5 |
Definite-life intangible assets, amortization expense, 2024 | 14 |
Life Insurance | |
Finite-Lived Intangible Assets [Line Items] | |
VOBA, amortization expense, 2020 | 4 |
VOBA, amortization expense, 2021 | 3.1 |
VOBA, amortization expense, 2022 | 2.7 |
VOBA, amortization expense, 2023 | 2.5 |
VOBA, amortization expense, 2024 | $ 2.4 |
Property and Casualty Insuran_3
Property and Casualty Insurance Reserves - Short-duration Insurance Contracts, Claims Development (Details) $ in Millions | Dec. 31, 2019USD ($)claim | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) |
Short-duration Insurance Contracts, Liability for Unpaid Claims and Allocated Claim Adjustment Expense, Net [Abstract] | |||||
Loss and Allocated LAE Reserves, Net of Reinsurance | $ 1,725.1 | ||||
Specialty Personal Automobile Insurance—Liability | |||||
Claims Development [Line Items] | |||||
Incurred Losses and Allocated LAE, Net of Reinsurance For the Years Ended December 31, | 5,389.9 | ||||
Short-duration Insurance Contracts, Liability for Unpaid Claims and Allocated Claim Adjustment Expense, Net [Abstract] | |||||
Cumulative Paid Losses and Allocated LAE, Net | 4,269.4 | ||||
Outstanding Loss and Allocated LAE Reserves on Accident Years before 2015, Net of Reinsurance | 20.4 | ||||
Loss and Allocated LAE Reserves, Net of Reinsurance | 1,140.9 | ||||
Specialty Personal Automobile Insurance—Physical Damage | |||||
Claims Development [Line Items] | |||||
Incurred Losses and Allocated LAE, Net of Reinsurance For the Years Ended December 31, | 2,400.3 | ||||
Short-duration Insurance Contracts, Liability for Unpaid Claims and Allocated Claim Adjustment Expense, Net [Abstract] | |||||
Cumulative Paid Losses and Allocated LAE, Net | 2,356.9 | ||||
Outstanding Loss and Allocated LAE Reserves on Accident Years before 2015, Net of Reinsurance | (1.2) | ||||
Loss and Allocated LAE Reserves, Net of Reinsurance | 42.2 | ||||
Commercial Automobile Insurance—Liability | |||||
Claims Development [Line Items] | |||||
Incurred Losses and Allocated LAE, Net of Reinsurance For the Years Ended December 31, | 591.6 | ||||
Short-duration Insurance Contracts, Liability for Unpaid Claims and Allocated Claim Adjustment Expense, Net [Abstract] | |||||
Cumulative Paid Losses and Allocated LAE, Net | 401.8 | ||||
Outstanding Loss and Allocated LAE Reserves on Accident Years before 2015, Net of Reinsurance | 1.4 | ||||
Loss and Allocated LAE Reserves, Net of Reinsurance | 191.2 | ||||
Commercial Automobile Insurance—Physical Damage | |||||
Claims Development [Line Items] | |||||
Incurred Losses and Allocated LAE, Net of Reinsurance For the Years Ended December 31, | 118.9 | ||||
Short-duration Insurance Contracts, Liability for Unpaid Claims and Allocated Claim Adjustment Expense, Net [Abstract] | |||||
Cumulative Paid Losses and Allocated LAE, Net | 115.9 | ||||
Outstanding Loss and Allocated LAE Reserves on Accident Years before 2015, Net of Reinsurance | 0 | ||||
Loss and Allocated LAE Reserves, Net of Reinsurance | 3 | ||||
Preferred Personal Automobile Insurance—Liability | |||||
Claims Development [Line Items] | |||||
Incurred Losses and Allocated LAE, Net of Reinsurance For the Years Ended December 31, | 838.2 | ||||
Short-duration Insurance Contracts, Liability for Unpaid Claims and Allocated Claim Adjustment Expense, Net [Abstract] | |||||
Cumulative Paid Losses and Allocated LAE, Net | 634.8 | ||||
Outstanding Loss and Allocated LAE Reserves on Accident Years before 2015, Net of Reinsurance | 9.5 | ||||
Loss and Allocated LAE Reserves, Net of Reinsurance | 212.9 | ||||
Preferred Personal Automobile Insurance—Physical Damage | |||||
Claims Development [Line Items] | |||||
Incurred Losses and Allocated LAE, Net of Reinsurance For the Years Ended December 31, | 549.4 | ||||
Short-duration Insurance Contracts, Liability for Unpaid Claims and Allocated Claim Adjustment Expense, Net [Abstract] | |||||
Cumulative Paid Losses and Allocated LAE, Net | 544.2 | ||||
Outstanding Loss and Allocated LAE Reserves on Accident Years before 2015, Net of Reinsurance | (0.1) | ||||
Loss and Allocated LAE Reserves, Net of Reinsurance | 5.1 | ||||
Homeowners Insurance | |||||
Claims Development [Line Items] | |||||
Incurred Losses and Allocated LAE, Net of Reinsurance For the Years Ended December 31, | 957.7 | ||||
Short-duration Insurance Contracts, Liability for Unpaid Claims and Allocated Claim Adjustment Expense, Net [Abstract] | |||||
Cumulative Paid Losses and Allocated LAE, Net | 888.6 | ||||
Outstanding Loss and Allocated LAE Reserves on Accident Years before 2015, Net of Reinsurance | 3.2 | ||||
Loss and Allocated LAE Reserves, Net of Reinsurance | 72.3 | ||||
2015 | Specialty Personal Automobile Insurance—Liability | |||||
Claims Development [Line Items] | |||||
Incurred Losses and Allocated LAE, Net of Reinsurance For the Years Ended December 31, | 969.6 | $ 972.3 | $ 965.1 | $ 855.1 | $ 965.1 |
Total of IBNR Liabilities Plus Expected Development on Reported Claims | $ 8.1 | ||||
Cumulative Number of Reported Claims | claim | 401,025 | ||||
Short-duration Insurance Contracts, Liability for Unpaid Claims and Allocated Claim Adjustment Expense, Net [Abstract] | |||||
Cumulative Paid Losses and Allocated LAE, Net | $ 954 | 934.7 | 898.9 | 794.9 | 450.5 |
2015 | Specialty Personal Automobile Insurance—Physical Damage | |||||
Claims Development [Line Items] | |||||
Incurred Losses and Allocated LAE, Net of Reinsurance For the Years Ended December 31, | 406.6 | 406.5 | 406.7 | 407.1 | 403.8 |
Total of IBNR Liabilities Plus Expected Development on Reported Claims | $ 0.9 | ||||
Cumulative Number of Reported Claims | claim | 231,007 | ||||
Short-duration Insurance Contracts, Liability for Unpaid Claims and Allocated Claim Adjustment Expense, Net [Abstract] | |||||
Cumulative Paid Losses and Allocated LAE, Net | $ 406.1 | 406.4 | 406.7 | 408.8 | 382.4 |
2015 | Commercial Automobile Insurance—Liability | |||||
Claims Development [Line Items] | |||||
Incurred Losses and Allocated LAE, Net of Reinsurance For the Years Ended December 31, | 110.7 | 112.3 | 112.9 | 106.9 | 102.5 |
Total of IBNR Liabilities Plus Expected Development on Reported Claims | $ 0.6 | ||||
Cumulative Number of Reported Claims | claim | 19,292 | ||||
Short-duration Insurance Contracts, Liability for Unpaid Claims and Allocated Claim Adjustment Expense, Net [Abstract] | |||||
Cumulative Paid Losses and Allocated LAE, Net | $ 107.6 | 100.3 | 88.6 | 70.2 | 34.8 |
2015 | Commercial Automobile Insurance—Physical Damage | |||||
Claims Development [Line Items] | |||||
Incurred Losses and Allocated LAE, Net of Reinsurance For the Years Ended December 31, | 21.7 | 21.7 | 21.7 | 21.6 | 21.5 |
Total of IBNR Liabilities Plus Expected Development on Reported Claims | $ 0 | ||||
Cumulative Number of Reported Claims | claim | 9,643 | ||||
Short-duration Insurance Contracts, Liability for Unpaid Claims and Allocated Claim Adjustment Expense, Net [Abstract] | |||||
Cumulative Paid Losses and Allocated LAE, Net | $ 21.7 | 21.7 | 21.7 | 21.6 | 20.2 |
2015 | Preferred Personal Automobile Insurance—Liability | |||||
Claims Development [Line Items] | |||||
Incurred Losses and Allocated LAE, Net of Reinsurance For the Years Ended December 31, | 177.1 | 177.6 | 176.5 | 171.8 | 168.3 |
Total of IBNR Liabilities Plus Expected Development on Reported Claims | $ 0.9 | ||||
Cumulative Number of Reported Claims | claim | 38,961 | ||||
Short-duration Insurance Contracts, Liability for Unpaid Claims and Allocated Claim Adjustment Expense, Net [Abstract] | |||||
Cumulative Paid Losses and Allocated LAE, Net | $ 169.3 | 163.1 | 147.5 | 122.4 | 73.1 |
2015 | Preferred Personal Automobile Insurance—Physical Damage | |||||
Claims Development [Line Items] | |||||
Incurred Losses and Allocated LAE, Net of Reinsurance For the Years Ended December 31, | 100.6 | 100.6 | 100.6 | 100.7 | 101.2 |
Total of IBNR Liabilities Plus Expected Development on Reported Claims | $ 0 | ||||
Cumulative Number of Reported Claims | claim | 68,409 | ||||
Short-duration Insurance Contracts, Liability for Unpaid Claims and Allocated Claim Adjustment Expense, Net [Abstract] | |||||
Cumulative Paid Losses and Allocated LAE, Net | $ 100.6 | 100.6 | 100.7 | 101 | 100.1 |
2015 | Homeowners Insurance | |||||
Claims Development [Line Items] | |||||
Incurred Losses and Allocated LAE, Net of Reinsurance For the Years Ended December 31, | 164.4 | 164.3 | 163.2 | 164.9 | 178.9 |
Total of IBNR Liabilities Plus Expected Development on Reported Claims | $ 0.5 | ||||
Cumulative Number of Reported Claims | claim | 19,731 | ||||
Short-duration Insurance Contracts, Liability for Unpaid Claims and Allocated Claim Adjustment Expense, Net [Abstract] | |||||
Cumulative Paid Losses and Allocated LAE, Net | $ 162.7 | 161.3 | 158 | 154.4 | $ 116.9 |
2016 | Specialty Personal Automobile Insurance—Liability | |||||
Claims Development [Line Items] | |||||
Incurred Losses and Allocated LAE, Net of Reinsurance For the Years Ended December 31, | 1,026 | 1,027.2 | 1,021.6 | 969.4 | |
Total of IBNR Liabilities Plus Expected Development on Reported Claims | $ 22.5 | ||||
Cumulative Number of Reported Claims | claim | 417,016 | ||||
Short-duration Insurance Contracts, Liability for Unpaid Claims and Allocated Claim Adjustment Expense, Net [Abstract] | |||||
Cumulative Paid Losses and Allocated LAE, Net | $ 987.7 | 943.4 | 831.1 | 459.7 | |
2016 | Specialty Personal Automobile Insurance—Physical Damage | |||||
Claims Development [Line Items] | |||||
Incurred Losses and Allocated LAE, Net of Reinsurance For the Years Ended December 31, | 457 | 456.9 | 456.9 | 462.2 | |
Total of IBNR Liabilities Plus Expected Development on Reported Claims | $ (0.1) | ||||
Cumulative Number of Reported Claims | claim | 246,183 | ||||
Short-duration Insurance Contracts, Liability for Unpaid Claims and Allocated Claim Adjustment Expense, Net [Abstract] | |||||
Cumulative Paid Losses and Allocated LAE, Net | $ 457.5 | 458 | 460.2 | 436.4 | |
2016 | Commercial Automobile Insurance—Liability | |||||
Claims Development [Line Items] | |||||
Incurred Losses and Allocated LAE, Net of Reinsurance For the Years Ended December 31, | 117.7 | 115.6 | 112.4 | 120.5 | |
Total of IBNR Liabilities Plus Expected Development on Reported Claims | $ 3.5 | ||||
Cumulative Number of Reported Claims | claim | 20,417 | ||||
Short-duration Insurance Contracts, Liability for Unpaid Claims and Allocated Claim Adjustment Expense, Net [Abstract] | |||||
Cumulative Paid Losses and Allocated LAE, Net | $ 102.3 | 89.7 | 71.6 | 36.2 | |
2016 | Commercial Automobile Insurance—Physical Damage | |||||
Claims Development [Line Items] | |||||
Incurred Losses and Allocated LAE, Net of Reinsurance For the Years Ended December 31, | 24.2 | 24.1 | 24.2 | 24.2 | |
Total of IBNR Liabilities Plus Expected Development on Reported Claims | $ 0 | ||||
Cumulative Number of Reported Claims | claim | 10,560 | ||||
Short-duration Insurance Contracts, Liability for Unpaid Claims and Allocated Claim Adjustment Expense, Net [Abstract] | |||||
Cumulative Paid Losses and Allocated LAE, Net | $ 24.2 | 24.1 | 24.2 | 22.4 | |
2016 | Preferred Personal Automobile Insurance—Liability | |||||
Claims Development [Line Items] | |||||
Incurred Losses and Allocated LAE, Net of Reinsurance For the Years Ended December 31, | 176.8 | 179.1 | 174.5 | 162.1 | |
Total of IBNR Liabilities Plus Expected Development on Reported Claims | $ 2.1 | ||||
Cumulative Number of Reported Claims | claim | 36,721 | ||||
Short-duration Insurance Contracts, Liability for Unpaid Claims and Allocated Claim Adjustment Expense, Net [Abstract] | |||||
Cumulative Paid Losses and Allocated LAE, Net | $ 161.1 | 145.6 | 114.6 | 61.2 | |
2016 | Preferred Personal Automobile Insurance—Physical Damage | |||||
Claims Development [Line Items] | |||||
Incurred Losses and Allocated LAE, Net of Reinsurance For the Years Ended December 31, | 106.2 | 106.3 | 106.6 | 106.6 | |
Total of IBNR Liabilities Plus Expected Development on Reported Claims | $ (0.1) | ||||
Cumulative Number of Reported Claims | claim | 65,348 | ||||
Short-duration Insurance Contracts, Liability for Unpaid Claims and Allocated Claim Adjustment Expense, Net [Abstract] | |||||
Cumulative Paid Losses and Allocated LAE, Net | $ 106.3 | 106.3 | 106.9 | 105.2 | |
2016 | Homeowners Insurance | |||||
Claims Development [Line Items] | |||||
Incurred Losses and Allocated LAE, Net of Reinsurance For the Years Ended December 31, | 202.2 | 204.2 | 201.7 | 200.3 | |
Total of IBNR Liabilities Plus Expected Development on Reported Claims | $ 1.4 | ||||
Cumulative Number of Reported Claims | claim | 20,380 | ||||
Short-duration Insurance Contracts, Liability for Unpaid Claims and Allocated Claim Adjustment Expense, Net [Abstract] | |||||
Cumulative Paid Losses and Allocated LAE, Net | $ 198.9 | 195.8 | 190.1 | $ 141.2 | |
2017 | Specialty Personal Automobile Insurance—Liability | |||||
Claims Development [Line Items] | |||||
Incurred Losses and Allocated LAE, Net of Reinsurance For the Years Ended December 31, | 1,004.5 | 999.9 | 997.7 | ||
Total of IBNR Liabilities Plus Expected Development on Reported Claims | $ 40.6 | ||||
Cumulative Number of Reported Claims | claim | 396,578 | ||||
Short-duration Insurance Contracts, Liability for Unpaid Claims and Allocated Claim Adjustment Expense, Net [Abstract] | |||||
Cumulative Paid Losses and Allocated LAE, Net | $ 926.7 | 808.6 | 441.9 | ||
2017 | Specialty Personal Automobile Insurance—Physical Damage | |||||
Claims Development [Line Items] | |||||
Incurred Losses and Allocated LAE, Net of Reinsurance For the Years Ended December 31, | 465.1 | 465.6 | 475.6 | ||
Total of IBNR Liabilities Plus Expected Development on Reported Claims | $ 0 | ||||
Cumulative Number of Reported Claims | claim | 251,872 | ||||
Short-duration Insurance Contracts, Liability for Unpaid Claims and Allocated Claim Adjustment Expense, Net [Abstract] | |||||
Cumulative Paid Losses and Allocated LAE, Net | $ 466 | 468.7 | 443 | ||
2017 | Commercial Automobile Insurance—Liability | |||||
Claims Development [Line Items] | |||||
Incurred Losses and Allocated LAE, Net of Reinsurance For the Years Ended December 31, | 118.3 | 120 | 120.5 | ||
Total of IBNR Liabilities Plus Expected Development on Reported Claims | $ 9.1 | ||||
Cumulative Number of Reported Claims | claim | 19,925 | ||||
Short-duration Insurance Contracts, Liability for Unpaid Claims and Allocated Claim Adjustment Expense, Net [Abstract] | |||||
Cumulative Paid Losses and Allocated LAE, Net | $ 90.7 | 72.3 | 36.3 | ||
2017 | Commercial Automobile Insurance—Physical Damage | |||||
Claims Development [Line Items] | |||||
Incurred Losses and Allocated LAE, Net of Reinsurance For the Years Ended December 31, | 23.5 | 23.5 | 24.2 | ||
Total of IBNR Liabilities Plus Expected Development on Reported Claims | $ 0.2 | ||||
Cumulative Number of Reported Claims | claim | 9,788 | ||||
Short-duration Insurance Contracts, Liability for Unpaid Claims and Allocated Claim Adjustment Expense, Net [Abstract] | |||||
Cumulative Paid Losses and Allocated LAE, Net | $ 23.4 | 23.5 | 22.2 | ||
2017 | Preferred Personal Automobile Insurance—Liability | |||||
Claims Development [Line Items] | |||||
Incurred Losses and Allocated LAE, Net of Reinsurance For the Years Ended December 31, | 155.8 | 157.8 | 164.4 | ||
Total of IBNR Liabilities Plus Expected Development on Reported Claims | $ 4.5 | ||||
Cumulative Number of Reported Claims | claim | 33,663 | ||||
Short-duration Insurance Contracts, Liability for Unpaid Claims and Allocated Claim Adjustment Expense, Net [Abstract] | |||||
Cumulative Paid Losses and Allocated LAE, Net | $ 134.1 | 108.9 | 59.2 | ||
2017 | Preferred Personal Automobile Insurance—Physical Damage | |||||
Claims Development [Line Items] | |||||
Incurred Losses and Allocated LAE, Net of Reinsurance For the Years Ended December 31, | 105.2 | 105.8 | 109.2 | ||
Total of IBNR Liabilities Plus Expected Development on Reported Claims | $ (0.1) | ||||
Cumulative Number of Reported Claims | claim | 62,553 | ||||
Short-duration Insurance Contracts, Liability for Unpaid Claims and Allocated Claim Adjustment Expense, Net [Abstract] | |||||
Cumulative Paid Losses and Allocated LAE, Net | $ 105.2 | 106.1 | 104.4 | ||
2017 | Homeowners Insurance | |||||
Claims Development [Line Items] | |||||
Incurred Losses and Allocated LAE, Net of Reinsurance For the Years Ended December 31, | 245.2 | 259.5 | 261.2 | ||
Total of IBNR Liabilities Plus Expected Development on Reported Claims | $ 0.9 | ||||
Cumulative Number of Reported Claims | claim | 20,982 | ||||
Short-duration Insurance Contracts, Liability for Unpaid Claims and Allocated Claim Adjustment Expense, Net [Abstract] | |||||
Cumulative Paid Losses and Allocated LAE, Net | $ 235.7 | 242.5 | $ 165.8 | ||
2018 | Specialty Personal Automobile Insurance—Liability | |||||
Claims Development [Line Items] | |||||
Incurred Losses and Allocated LAE, Net of Reinsurance For the Years Ended December 31, | 1,119.1 | 1,128.1 | |||
Total of IBNR Liabilities Plus Expected Development on Reported Claims | $ 93 | ||||
Cumulative Number of Reported Claims | claim | 445,229 | ||||
Short-duration Insurance Contracts, Liability for Unpaid Claims and Allocated Claim Adjustment Expense, Net [Abstract] | |||||
Cumulative Paid Losses and Allocated LAE, Net | $ 903.8 | 467.5 | |||
2018 | Specialty Personal Automobile Insurance—Physical Damage | |||||
Claims Development [Line Items] | |||||
Incurred Losses and Allocated LAE, Net of Reinsurance For the Years Ended December 31, | 496.9 | 504.9 | |||
Total of IBNR Liabilities Plus Expected Development on Reported Claims | $ (1.6) | ||||
Cumulative Number of Reported Claims | claim | 269,782 | ||||
Short-duration Insurance Contracts, Liability for Unpaid Claims and Allocated Claim Adjustment Expense, Net [Abstract] | |||||
Cumulative Paid Losses and Allocated LAE, Net | $ 501.5 | 463.6 | |||
2018 | Commercial Automobile Insurance—Liability | |||||
Claims Development [Line Items] | |||||
Incurred Losses and Allocated LAE, Net of Reinsurance For the Years Ended December 31, | 116.5 | 123.2 | |||
Total of IBNR Liabilities Plus Expected Development on Reported Claims | $ 19.8 | ||||
Cumulative Number of Reported Claims | claim | 19,969 | ||||
Short-duration Insurance Contracts, Liability for Unpaid Claims and Allocated Claim Adjustment Expense, Net [Abstract] | |||||
Cumulative Paid Losses and Allocated LAE, Net | $ 68.8 | 36.8 | |||
2018 | Commercial Automobile Insurance—Physical Damage | |||||
Claims Development [Line Items] | |||||
Incurred Losses and Allocated LAE, Net of Reinsurance For the Years Ended December 31, | 23.5 | 23.6 | |||
Total of IBNR Liabilities Plus Expected Development on Reported Claims | $ 0.3 | ||||
Cumulative Number of Reported Claims | claim | 9,558 | ||||
Short-duration Insurance Contracts, Liability for Unpaid Claims and Allocated Claim Adjustment Expense, Net [Abstract] | |||||
Cumulative Paid Losses and Allocated LAE, Net | $ 23.6 | 21.7 | |||
2018 | Preferred Personal Automobile Insurance—Liability | |||||
Claims Development [Line Items] | |||||
Incurred Losses and Allocated LAE, Net of Reinsurance For the Years Ended December 31, | 156.3 | 157.6 | |||
Total of IBNR Liabilities Plus Expected Development on Reported Claims | $ 15.6 | ||||
Cumulative Number of Reported Claims | claim | 32,020 | ||||
Short-duration Insurance Contracts, Liability for Unpaid Claims and Allocated Claim Adjustment Expense, Net [Abstract] | |||||
Cumulative Paid Losses and Allocated LAE, Net | $ 107.6 | 55.5 | |||
2018 | Preferred Personal Automobile Insurance—Physical Damage | |||||
Claims Development [Line Items] | |||||
Incurred Losses and Allocated LAE, Net of Reinsurance For the Years Ended December 31, | 111 | 113.9 | |||
Total of IBNR Liabilities Plus Expected Development on Reported Claims | $ (0.5) | ||||
Cumulative Number of Reported Claims | claim | 60,749 | ||||
Short-duration Insurance Contracts, Liability for Unpaid Claims and Allocated Claim Adjustment Expense, Net [Abstract] | |||||
Cumulative Paid Losses and Allocated LAE, Net | $ 111.4 | 107.2 | |||
2018 | Homeowners Insurance | |||||
Claims Development [Line Items] | |||||
Incurred Losses and Allocated LAE, Net of Reinsurance For the Years Ended December 31, | 183 | 185.9 | |||
Total of IBNR Liabilities Plus Expected Development on Reported Claims | $ 1.2 | ||||
Cumulative Number of Reported Claims | claim | 17,122 | ||||
Short-duration Insurance Contracts, Liability for Unpaid Claims and Allocated Claim Adjustment Expense, Net [Abstract] | |||||
Cumulative Paid Losses and Allocated LAE, Net | $ 180.2 | $ 127.4 | |||
2019 | Specialty Personal Automobile Insurance—Liability | |||||
Claims Development [Line Items] | |||||
Incurred Losses and Allocated LAE, Net of Reinsurance For the Years Ended December 31, | 1,270.7 | ||||
Total of IBNR Liabilities Plus Expected Development on Reported Claims | $ 383 | ||||
Cumulative Number of Reported Claims | claim | 447,558 | ||||
Short-duration Insurance Contracts, Liability for Unpaid Claims and Allocated Claim Adjustment Expense, Net [Abstract] | |||||
Cumulative Paid Losses and Allocated LAE, Net | $ 497.2 | ||||
2019 | Specialty Personal Automobile Insurance—Physical Damage | |||||
Claims Development [Line Items] | |||||
Incurred Losses and Allocated LAE, Net of Reinsurance For the Years Ended December 31, | 574.7 | ||||
Total of IBNR Liabilities Plus Expected Development on Reported Claims | $ 47.5 | ||||
Cumulative Number of Reported Claims | claim | 276,797 | ||||
Short-duration Insurance Contracts, Liability for Unpaid Claims and Allocated Claim Adjustment Expense, Net [Abstract] | |||||
Cumulative Paid Losses and Allocated LAE, Net | $ 525.8 | ||||
2019 | Commercial Automobile Insurance—Liability | |||||
Claims Development [Line Items] | |||||
Incurred Losses and Allocated LAE, Net of Reinsurance For the Years Ended December 31, | 128.4 | ||||
Total of IBNR Liabilities Plus Expected Development on Reported Claims | $ 59.2 | ||||
Cumulative Number of Reported Claims | claim | 17,772 | ||||
Short-duration Insurance Contracts, Liability for Unpaid Claims and Allocated Claim Adjustment Expense, Net [Abstract] | |||||
Cumulative Paid Losses and Allocated LAE, Net | $ 32.4 | ||||
2019 | Commercial Automobile Insurance—Physical Damage | |||||
Claims Development [Line Items] | |||||
Incurred Losses and Allocated LAE, Net of Reinsurance For the Years Ended December 31, | 26 | ||||
Total of IBNR Liabilities Plus Expected Development on Reported Claims | $ 3.5 | ||||
Cumulative Number of Reported Claims | claim | 8,803 | ||||
Short-duration Insurance Contracts, Liability for Unpaid Claims and Allocated Claim Adjustment Expense, Net [Abstract] | |||||
Cumulative Paid Losses and Allocated LAE, Net | $ 23 | ||||
2019 | Preferred Personal Automobile Insurance—Liability | |||||
Claims Development [Line Items] | |||||
Incurred Losses and Allocated LAE, Net of Reinsurance For the Years Ended December 31, | 172.2 | ||||
Total of IBNR Liabilities Plus Expected Development on Reported Claims | $ 51.3 | ||||
Cumulative Number of Reported Claims | claim | 32,848 | ||||
Short-duration Insurance Contracts, Liability for Unpaid Claims and Allocated Claim Adjustment Expense, Net [Abstract] | |||||
Cumulative Paid Losses and Allocated LAE, Net | $ 62.7 | ||||
2019 | Preferred Personal Automobile Insurance—Physical Damage | |||||
Claims Development [Line Items] | |||||
Incurred Losses and Allocated LAE, Net of Reinsurance For the Years Ended December 31, | 126.4 | ||||
Total of IBNR Liabilities Plus Expected Development on Reported Claims | $ (0.9) | ||||
Cumulative Number of Reported Claims | claim | 60,548 | ||||
Short-duration Insurance Contracts, Liability for Unpaid Claims and Allocated Claim Adjustment Expense, Net [Abstract] | |||||
Cumulative Paid Losses and Allocated LAE, Net | $ 120.7 | ||||
2019 | Homeowners Insurance | |||||
Claims Development [Line Items] | |||||
Incurred Losses and Allocated LAE, Net of Reinsurance For the Years Ended December 31, | 162.9 | ||||
Total of IBNR Liabilities Plus Expected Development on Reported Claims | $ 19.2 | ||||
Cumulative Number of Reported Claims | claim | 13,931 | ||||
Short-duration Insurance Contracts, Liability for Unpaid Claims and Allocated Claim Adjustment Expense, Net [Abstract] | |||||
Cumulative Paid Losses and Allocated LAE, Net | $ 111.1 |
Property and Casualty Insuran_4
Property and Casualty Insurance Reserves - Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability (Details) $ in Millions | Dec. 31, 2019USD ($) |
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | |
Property and Casualty Insurance Reserves, Net of Reinsurance | $ 1,725.1 |
Reinsurance Recoverables on Unpaid Losses and Allocated LAE | 65.6 |
Unallocated LAE | 179.1 |
Property and Casualty Insurance Reserves, Gross of Reinsurance | 1,969.8 |
Specialty Personal Automobile Insurance—Liability | |
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | |
Property and Casualty Insurance Reserves, Net of Reinsurance | 1,140.9 |
Reinsurance Recoverables on Unpaid Losses and Allocated LAE | 8.7 |
Specialty Personal Automobile Insurance—Physical Damage | |
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | |
Property and Casualty Insurance Reserves, Net of Reinsurance | 42.2 |
Commercial Automobile Insurance—Liability | |
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | |
Property and Casualty Insurance Reserves, Net of Reinsurance | 191.2 |
Reinsurance Recoverables on Unpaid Losses and Allocated LAE | 9.4 |
Commercial Automobile Insurance—Physical Damage | |
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | |
Property and Casualty Insurance Reserves, Net of Reinsurance | 3 |
Preferred Personal Automobile Insurance—Liability | |
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | |
Property and Casualty Insurance Reserves, Net of Reinsurance | 212.9 |
Reinsurance Recoverables on Unpaid Losses and Allocated LAE | 25.2 |
Preferred Personal Automobile Insurance—Physical Damage | |
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | |
Property and Casualty Insurance Reserves, Net of Reinsurance | 5.1 |
Homeowners Insurance | |
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | |
Property and Casualty Insurance Reserves, Net of Reinsurance | 72.3 |
Reinsurance Recoverables on Unpaid Losses and Allocated LAE | 15.5 |
Other | |
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | |
Property and Casualty Insurance Reserves, Net of Reinsurance | 57.5 |
Reinsurance Recoverables on Unpaid Losses and Allocated LAE | $ 6.8 |
Property and Casualty Insuran_5
Property and Casualty Insurance Reserves - Historical Claims Duration (Details) | Dec. 31, 2019 |
Specialty Personal Automobile Insurance—Liability | |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |
Year 1 | 43.20% |
Year 2 | 81.10% |
Year 3 | 92.30% |
Year 4 | 96.30% |
Year 5 | 98.40% |
Specialty Personal Automobile Insurance—Physical Damage | |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |
Year 1 | 93.90% |
Year 2 | 100.70% |
Year 3 | 100.10% |
Year 4 | 100.00% |
Year 5 | 99.90% |
Commercial Automobile Insurance—Liability | |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |
Year 1 | 29.90% |
Year 2 | 61.10% |
Year 3 | 77.60% |
Year 4 | 88.80% |
Year 5 | 97.20% |
Commercial Automobile Insurance—Physical Damage | |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |
Year 1 | 92.20% |
Year 2 | 100.00% |
Year 3 | 99.70% |
Year 4 | 100.00% |
Year 5 | 100.00% |
Preferred Personal Automobile Insurance—Liability | |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |
Year 1 | 37.20% |
Year 2 | 68.20% |
Year 3 | 83.90% |
Year 4 | 91.60% |
Year 5 | 95.60% |
Preferred Personal Automobile Insurance—Physical Damage | |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |
Year 1 | 98.00% |
Year 2 | 100.60% |
Year 3 | 100.10% |
Year 4 | 100.00% |
Year 5 | 100.00% |
Homeowners | |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |
Year 1 | 69.30% |
Year 2 | 96.30% |
Year 3 | 96.40% |
Year 4 | 98.20% |
Year 5 | 99.00% |
Property and Casualty Insuran_6
Property and Casualty Insurance Reserves - Reserve Activity (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward] | |||
Gross of Reinsurance at Beginning of Year | $ 1,874.9 | ||
Less Reinsurance Recoverables at Beginning of Year | 158.3 | ||
Incurred Losses and LAE related to: | |||
Incurred Losses and LAE Related to Prior Years | (71.1) | $ (7.4) | $ 18.9 |
Paid Losses and LAE related to: | |||
Plus Reinsurance Recoverables at End of Year | 122.6 | 158.3 | |
Property and Casualty Insurance Reserves, Gross of Reinsurance at End of Year | 1,969.8 | 1,874.9 | |
Property and Liability Insurance | |||
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward] | |||
Gross of Reinsurance at Beginning of Year | 1,874.9 | 1,016.8 | 931.4 |
Less Reinsurance Recoverables at Beginning of Year | 101.9 | 53.1 | 50.2 |
Property and Casualty Insurance Reserves, Net of Reinsurance at Beginning of Year | 1,773 | 963.7 | 881.2 |
Property and Casualty Insurance Reserves Acquired, Net of Reinsurance | 3.6 | 695.1 | 0 |
Incurred Losses and LAE related to: | |||
Incurred Losses and LAE Related to Current Year | 2,879.5 | 2,093.4 | 1,454.1 |
Incurred Losses and LAE Related to Prior Years | (71.1) | (7.4) | 18.9 |
Total Incurred Losses and LAE | 2,808.4 | 2,086 | 1,473 |
Paid Losses and LAE related to: | |||
Paid Losses and LAE Related to Current Year | 1,682.1 | 1,300.8 | 868.1 |
Paid Losses and LAE Related to Prior Years | 998.7 | 671 | 522.4 |
Total Paid Losses and LAE | 2,680.8 | 1,971.8 | 1,390.5 |
Property and Casualty Insurance Reserves, Net of Reinsurance at End of Year | 1,904.2 | 1,773 | 963.7 |
Plus Reinsurance Recoverables at End of Year | 65.6 | 101.9 | 53.1 |
Property and Casualty Insurance Reserves, Gross of Reinsurance at End of Year | $ 1,969.8 | $ 1,874.9 | $ 1,016.8 |
Property and Casualty Insuran_7
Property and Casualty Insurance Reserves - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
Incurred losses and LAE related to prior year (favorable) adverse development | $ (71.1) | $ (7.4) | $ 18.9 | |
Reinsurance recoverables | 122.6 | 158.3 | ||
Specialty Automobile | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
Incurred losses and LAE related to prior year (favorable) adverse development | 23.8 | 5.5 | (2.9) | |
Commercial Lines | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
Incurred losses and LAE related to prior year (favorable) adverse development | (12.9) | (6.1) | (0.6) | |
Preferred Automobile | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
Incurred losses and LAE related to prior year (favorable) adverse development | (8.2) | (5.8) | (19.3) | |
Homeowners | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
Incurred losses and LAE related to prior year (favorable) adverse development | (19.7) | 3.2 | (1) | |
Other Personal Lines | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
Incurred losses and LAE related to prior year (favorable) adverse development | (6.5) | (4.3) | 3.7 | |
Property and Liability Insurance | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
Incurred losses and LAE related to prior year (favorable) adverse development | (71.1) | (7.4) | 18.9 | |
Reinsurance recoverables | 65.6 | 101.9 | 53.1 | $ 50.2 |
Catastrophe | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
Incurred losses and LAE related to prior year (favorable) adverse development | $ (17.1) | $ (8.4) | (4.5) | |
Catastrophe | Homeowners | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
Incurred losses and LAE related to prior year (favorable) adverse development | $ (3.7) |
Policyholder Contract Liabili_3
Policyholder Contract Liabilities - Policyholder Contract Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Investment Holdings [Line Items] | ||
Policyholder Contract Liabilities | $ 309.8 | $ 76.8 |
Other | ||
Investment Holdings [Line Items] | ||
Policyholder Contract Liabilities | 66.4 | 66.8 |
United Insurance | FHLB of Chicago | FHLB Funding Agreements | ||
Investment Holdings [Line Items] | ||
Policyholder Contract Liabilities | $ 243.4 | $ 10 |
Policyholder Contract Liabili_4
Policyholder Contract Liabilities - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Federal Home Loan Bank, amount of advances | $ 10 | |
FHLB of Chicago | United Insurance | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Federal Home Loan Bank, amount of advances | $ 614.5 | |
Payments of FHLBank borrowings | $ 381.1 |
Policyholder Contract Liabili_5
Policyholder Contract Liabilities - Supplemental Financial Information (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Liability under Funding Agreements | $ 309.8 | $ 76.8 |
United Insurance | FHLB of Chicago | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Fair Value of Collateral Pledged | 287.8 | 15.7 |
FHLB of Chicago Common Stock Owned at Cost | 4.9 | 0.8 |
FHLB Funding Agreements | United Insurance | FHLB of Chicago | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Liability under Funding Agreements | $ 243.4 | $ 10 |
Debt - Narrative (Details)
Debt - Narrative (Details) - USD ($) | Jun. 07, 2019 | Jun. 04, 2019 | Dec. 28, 2018 | Jul. 02, 2018 | Jun. 29, 2018 | May 31, 2019 | Jun. 30, 2017 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jul. 05, 2019 | Jun. 08, 2018 | Feb. 28, 2015 |
Debt Instrument [Line Items] | |||||||||||||||||
Repayments of debt | $ 215,000,000 | $ 35,000,000 | |||||||||||||||
Long-term Debt, Current and Non-current, at Amortized Cost (Fair Value: 2019 - $820.2; 2018 - $911.2) | $ 778,400,000 | $ 778,400,000 | $ 909,000,000 | ||||||||||||||
Loss from Early Extinguishment of Debt | 0 | $ 5,800,000 | $ 0 | $ 0 | 5,800,000 | 0 | $ 0 | ||||||||||
Interest expense | 42,500,000 | 43,300,000 | 34,900,000 | ||||||||||||||
Interest paid including facility fees | 44,000,000 | 37,900,000 | $ 34,700,000 | ||||||||||||||
Secured Debt | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Proceeds from debt, net of issuance costs | $ 249,400,000 | ||||||||||||||||
Secured Debt | Term Loan due July 5, 2023 | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Maximum Capacity Amount | $ 50,000,000 | ||||||||||||||||
Long-term Debt, Current and Non-current, at Amortized Cost (Fair Value: 2019 - $820.2; 2018 - $911.2) | 49,900,000 | 49,900,000 | 0 | $ 49,900,000 | |||||||||||||
Senior Notes | 5.0% Senior Notes due September 19, 2022 | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Long-term Debt, Current and Non-current, at Amortized Cost (Fair Value: 2019 - $820.2; 2018 - $911.2) | $ 279,900,000 | $ 279,900,000 | 281,500,000 | ||||||||||||||
Stated interest rate, percentage | 5.00% | 5.00% | |||||||||||||||
Senior Notes | Senior Notes Payable, 4.35% due 2025 (Fair Value: 2019 – $478.6; 2018 – $444.2) | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Long-term Debt, Current and Non-current, at Amortized Cost (Fair Value: 2019 - $820.2; 2018 - $911.2) | $ 448,600,000 | $ 448,600,000 | 448,400,000 | ||||||||||||||
Stated interest rate, percentage | 4.35% | 4.35% | |||||||||||||||
Debt instrument, face amount | $ 250,000,000 | ||||||||||||||||
Increase in debt instrument | $ 200,000,000 | ||||||||||||||||
Long-term debt, gross | $ 450,000,000 | $ 450,000,000 | |||||||||||||||
Subordinated Debt | Subordinated Debentures due 2054 (Fair Value: 2018 – $151.1) | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Long-term Debt, Current and Non-current, at Amortized Cost (Fair Value: 2019 - $820.2; 2018 - $911.2) | $ 0 | $ 0 | 144,200,000 | ||||||||||||||
Stated interest rate, percentage | 7.375% | 7.375% | 7.375% | ||||||||||||||
Long-term debt, gross | $ 150,000,000 | ||||||||||||||||
Redemption price, percentage | 100.00% | ||||||||||||||||
Revolving Credit Facility | Notes Payable under Revolving Credit Agreement | Second Amended and Restated Credit Agreement | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Maximum Capacity Amount | 400,000,000 | $ 300,000,000 | |||||||||||||||
Increase in line of credit facility | 100,000,000 | ||||||||||||||||
Debt issuance costs | 100,000 | ||||||||||||||||
Unamortized debt issuance expense | $ 1,100,000 | ||||||||||||||||
Line of credit, outstanding | $ 0 | $ 0 | $ 0 | ||||||||||||||
Infinity Property and Casualty Corporation | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Fair value of senior notes assumed | $ 282,100,000 | ||||||||||||||||
Infinity Property and Casualty Corporation | Secured Debt | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Business combination, consideration transferred, liabilities incurred | $ 110,000,000 | $ 250,000,000 | |||||||||||||||
Infinity Property and Casualty Corporation | Senior Notes | 5.0% Senior Notes due September 19, 2022 | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Stated interest rate, percentage | 5.00% | ||||||||||||||||
Debt instrument, face amount | $ 275,000,000 | ||||||||||||||||
Fair value of senior notes assumed | 282,100,000 | ||||||||||||||||
Unamortized premium | $ 7,100,000 | ||||||||||||||||
Debt instrument, effective interest rate | 4.36% |
Debt - Debt Outstanding (Detail
Debt - Debt Outstanding (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Jul. 05, 2019 | Jun. 07, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||||
Long-term Debt, Current and Non-current, at Amortized Cost (Fair Value: 2019 - $820.2; 2018 - $911.2) | $ 778.4 | $ 909 | ||
Secured Debt | Term Loan due June 29, 2020 (Fair Value: 2018 – $35.0) | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt, Current and Non-current, at Amortized Cost (Fair Value: 2019 - $820.2; 2018 - $911.2) | 0 | 34.9 | ||
Secured Debt | Term Loan due July 5, 2023 | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt, Current and Non-current, at Amortized Cost (Fair Value: 2019 - $820.2; 2018 - $911.2) | $ 49.9 | $ 49.9 | 0 | |
Senior Notes | 5.0% Senior Notes due September 19, 2022 | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate, percentage | 5.00% | |||
Long-term Debt, Current and Non-current, at Amortized Cost (Fair Value: 2019 - $820.2; 2018 - $911.2) | $ 279.9 | 281.5 | ||
Senior Notes | Senior Notes Payable, 4.35% due 2025 (Fair Value: 2019 – $478.6; 2018 – $444.2) | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate, percentage | 4.35% | |||
Long-term Debt, Current and Non-current, at Amortized Cost (Fair Value: 2019 - $820.2; 2018 - $911.2) | $ 448.6 | 448.4 | ||
Subordinated Debt | Subordinated Debentures due 2054 (Fair Value: 2018 – $151.1) | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate, percentage | 7.375% | 7.375% | ||
Long-term Debt, Current and Non-current, at Amortized Cost (Fair Value: 2019 - $820.2; 2018 - $911.2) | $ 0 | $ 144.2 |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Operating Leased Assets [Line Items] | ||
Total minimum rentals to be received in the future under non-cancelable subleases | $ 0.8 | $ 0 |
Minimum | Building | ||
Operating Leased Assets [Line Items] | ||
Operating lease, term of contract | 1 year | |
Minimum | Equipment | ||
Operating Leased Assets [Line Items] | ||
Operating lease, term of contract | 1 year | |
Maximum | Building | ||
Operating Leased Assets [Line Items] | ||
Operating lease, term of contract | 15 years | |
Maximum | Equipment | ||
Operating Leased Assets [Line Items] | ||
Operating lease, term of contract | 5 years |
Leases - Right of Use Assets an
Leases - Right of Use Assets and Liabilities (Details) $ in Millions | Dec. 31, 2019USD ($) |
Leases [Abstract] | |
Operating Lease Right-of-Use Assets | $ 75.6 |
Operating Lease Liabilities | $ 93.2 |
Leases - Lease Cost (Details)
Leases - Lease Cost (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Lease Cost: | |
Amortization of Right-of-Use Assets - Finance Leases | $ 0.7 |
Operating Lease Cost | 20.7 |
Short-Term Lease Cost | 0.1 |
Total Expense | 21.5 |
Less: Sublease Income | 0.1 |
Total Lease Cost | $ 21.4 |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow Information (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Leases [Abstract] | |
Operating Cash Flows from Operating Leases (Fixed Payments) | $ 20 |
Operating Cash Flows from Operating Leases (Liability Reduction) | 17.6 |
Financing Cash Flows from Finance Leases | 0.7 |
Right-of-Use Assets Obtained in Exchange for New Operating Lease Liabilities | $ 25.9 |
Leases - Lease Weighted Average
Leases - Lease Weighted Average (Details) | Dec. 31, 2019 |
Leases [Abstract] | |
Weighted-average Remaining Lease Term - Finance Leases | 1 year 8 months 12 days |
Weighted-average Remaining Lease Term - Operating Leases | 7 years |
Weighted-average Discount Rate - Finance Leases | 4.00% |
Weighted-average Discount Rate - Operating Leases | 3.90% |
Leases - Future Minimum Lease P
Leases - Future Minimum Lease Payments (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Finance Leases | ||
Due Next 12 Months | $ 0.3 | $ 0.7 |
Due Year Two | 0.2 | 0.7 |
Due Year Three | 0 | 0.3 |
Due Year Four | 0 | 0.2 |
Due Year Five | 0 | 0 |
Due after Year Five | 0 | 0 |
Total Future Payments | 0.5 | 1.9 |
Less Discount | 0 | 0 |
Present Value of Minimum Lease Payments | 0.5 | 1.9 |
Operating Leases | ||
Due Next 12 Months | 20.5 | 20.5 |
Due Year Two | 19.3 | 18.4 |
Due Year Three | 17 | 16.9 |
Due Year Four | 14.7 | 15 |
Due Year Five | 8.3 | 12.5 |
Due after Year Five | 28.1 | 27.1 |
Total Future Payments | 107.9 | $ 110.4 |
Less Discount | 14.7 | |
Present Value of Minimum Lease Payments | $ 93.2 |
Shareholders' Equity - Narrativ
Shareholders' Equity - Narrative (Details) - USD ($) | Jun. 07, 2019 | Jul. 02, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jun. 30, 2019 |
Schedule of Capitalization, Equity [Line Items] | ||||||
Preferred stock, shares authorized (in shares) | 20,000,000 | |||||
Preferred stock, par value (in dollars per share) | $ 0.10 | |||||
Common stock, shares authorized (in shares) | 100,000,000 | 100,000,000 | ||||
Common stock, par value (in dollars per share) | $ 0.10 | $ 0.1 | ||||
Preferred stock, shares issued (in shares) | 0 | 0 | ||||
Preferred stock, shares outstanding (in shares) | 0 | 0 | ||||
Common stock, shares outstanding (in shares) | 66,665,888 | 64,756,833 | ||||
Share-based compensation expense | $ 25,300,000 | $ 18,600,000 | $ 9,400,000 | |||
Stock repurchased and retired during period (in shares) | 0 | 0 | 0 | |||
Percentage of authorized control Level RBC | 200.00% | |||||
Dividends paid | $ 67,800,000 | $ 56,400,000 | $ 49,500,000 | |||
Amount available for dividend payment | 1,300,000,000 | |||||
Kemper's Insurance Subsidiaries | ||||||
Schedule of Capitalization, Equity [Line Items] | ||||||
Cash dividends paid by Kemper's Insurance Subsidiaries to Kemper | 239,000,000 | |||||
Amount available for dividend payments | 435,400,000 | |||||
Amount of restricted net assets for consolidated and unconsolidated subsidiaries | 3,900,000,000 | |||||
Life & Health Insurance | Kemper's Insurance Subsidiaries | ||||||
Schedule of Capitalization, Equity [Line Items] | ||||||
Statutory capital and surplus | 408,000,000 | 454,700,000 | ||||
Statutory net income | 90,400,000 | 143,900,000 | 84,100,000 | |||
Statutory capital and surplus required | 122,000,000 | |||||
Property & Casualty Insurance Subsidiaries | Kemper's Insurance Subsidiaries | ||||||
Schedule of Capitalization, Equity [Line Items] | ||||||
Statutory capital and surplus | 1,600,000,000 | 1,400,000,000 | ||||
Statutory net income | 347,600,000 | $ 236,400,000 | $ 56,900,000 | |||
Statutory capital and surplus required | $ 641,900,000 | |||||
Subordinated Debentures due 2054 (Fair Value: 2018 – $151.1) | Subordinated Debt | ||||||
Schedule of Capitalization, Equity [Line Items] | ||||||
Long-term debt, gross | $ 150,000,000 | |||||
Stated interest rate, percentage | 7.375% | 7.375% | ||||
Employee Stock Purchase Plan | Stock Options | ||||||
Schedule of Capitalization, Equity [Line Items] | ||||||
Number of exercisable options | 1,300,000 | |||||
Minimum annual contributions per employee, percent | 1.00% | |||||
Maximum annual contributions per employee, percent | 10.00% | |||||
Maximum annual contributions per employee, amount | $ 25,000 | |||||
Discount from market price | 15.00% | |||||
Shares issued under employee stock purchase plan (in shares) | 24,080 | |||||
Price per share (in dollars per share) | $ 66.08 | |||||
Share-based compensation expense | $ 300,000 | |||||
Investment-grade | ||||||
Schedule of Capitalization, Equity [Line Items] | ||||||
Number of shares issued in transaction (in shares) | 1,552,500 | |||||
Sale of stock, price per share (in dollars per share) | $ 83 | |||||
Gross proceeds from issuance of common stock | $ 128,900,000 | |||||
Transaction costs | 1,700,000 | |||||
Net proceeds from issuance of common stock | 127,200,000 | |||||
Accrued Liabilities and Other Liabilities | Investment-grade | ||||||
Schedule of Capitalization, Equity [Line Items] | ||||||
Transaction costs | $ 100,000 | |||||
Infinity Property and Casualty Corporation | ||||||
Schedule of Capitalization, Equity [Line Items] | ||||||
Business acquisition, interest issued (in shares) | 13,184,107 | |||||
Share price | $ 74.53 |
Long-term Equity-based Compen_3
Long-term Equity-based Compensation - Narrative (Details) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019USD ($)installment$ / sharesshares | Dec. 31, 2018USD ($)$ / shares | Dec. 31, 2017USD ($)$ / shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares authorized (in shares) | shares | 10,000,000 | ||
Shares available for grant (in shares) | shares | 3,254,822 | ||
Share-based compensation expense | $ 25,300 | $ 18,600 | $ 9,400 |
Total compensation cost not yet recognized | $ 20,400 | ||
Annual awards of deferred stock units to be issued to each non-employee director, aggregate fair value | $ 110 | $ 110 | |
Weighted-average grant-date fair values (in dollars per share) | $ / shares | $ 20.99 | $ 15.14 | $ 8.89 |
Total intrinsic value | $ 7,700 | $ 3,900 | $ 4,900 |
Cash received from exercises of awards | 2,400 | 900 | 4,000 |
Total tax benefit realized for tax deductions from exercise of awards | $ 1,600 | 800 | 1,700 |
Total fair value of DSUs that vested during the years | 1,000 | 900 | |
Performance Based Restricted Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Reduction in share authorization if maximum performance level is met or exceeded (in shares) | shares | 1,082,460 | ||
Award vesting period | 3 years | ||
Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting installments | installment | 3 | ||
Award vesting period | 3 years | ||
Expiration period | 10 years | ||
Restricted Stock Units (RSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Annual awards of restricted stock units to be issued to each non-employee director, aggregate fair value | $ 130 | ||
Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total fair value of vested awards | 24,800 | 8,700 | 3,200 |
Tax benefits for tax deductions realized from awards | $ 5,200 | $ 1,800 | $ 1,100 |
Performance Period 1 | Performance Based Restricted Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Reduction in share authorization if maximum performance level is met or exceeded (in shares) | shares | 438,402 | ||
Number of additional shares to be granted if maximum performance level is met or exceeded (in shares) | shares | 146,134 | ||
Performance Period 2 | Performance Based Restricted Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Reduction in share authorization if maximum performance level is met or exceeded (in shares) | shares | 412,029 | ||
Number of additional shares to be granted if maximum performance level is met or exceeded (in shares) | shares | 137,343 | ||
Performance Period 3 | Performance Based Restricted Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Reduction in share authorization if maximum performance level is met or exceeded (in shares) | shares | 232,029 | ||
Number of additional shares to be granted if maximum performance level is met or exceeded (in shares) | shares | 77,343 |
Long-term Equity-based Compen_4
Long-term Equity-based Compensation - Black-Scholes Pricing Model For Options (Details) - Stock Options | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected volatility rate, minimum | 28.97% | 27.31% | 26.17% |
Expected volatility rate, maximum | 33.78% | 32.15% | 30.39% |
Risk-free interest rate, minimum | 1.35% | 2.44% | 1.59% |
Risk-free interest rate, maximum | 2.60% | 3.00% | 2.25% |
Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected dividend yield rate | 1.05% | 1.16% | 1.39% |
Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected dividend yield rate | 1.38% | 1.72% | 2.43% |
Employee | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted-average expected life (in years) | 4 years | 4 years | 4 years |
Employee | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted-average expected life (in years) | 6 years | 6 years | 6 years 6 months |
Long-term Equity-based Compen_5
Long-term Equity-based Compensation - Option and SAR Activity (Details) $ / shares in Units, $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($)$ / sharesshares | |
Shares Subject to Awards | |
Outstanding at Beginning of the Year (in shares) | shares | 1,434,273 |
Granted (in shares) | shares | 578,375 |
Exercised (in shares) | shares | (159,630) |
Forfeited or Expired (in shares) | shares | (44,203) |
Outstanding at December 31, 2019 (in shares) | shares | 1,808,815 |
Vested and Expected to Vest at December 31, 2019 (in shares) | shares | 1,718,559 |
Exercisable at December 31, 2019 (in shares) | shares | 803,769 |
Weighted- average Exercise Price Per Share ($) | |
Outstanding at Beginning of the Year (in dollars per share) | $ / shares | $ 46.48 |
Granted (in dollars per share) | $ / shares | 76.96 |
Exercised (in dollars per share) | $ / shares | 36.92 |
Forfeited or Expired (in dollars per share) | $ / shares | 68.43 |
Outstanding at December 31, 2019 (in dollars per share) | $ / shares | 56.53 |
Vested and Expected to Vest at December 31, 2019 (in dollars per share) | $ / shares | 56.03 |
Exercisable at December 31, 2019 (in dollars per share) | $ / shares | $ 42.15 |
Weighted- average Remaining Contractual Life (in Years) | |
Outstanding at December 31, 2019 | 7 years 7 months 24 days |
Vested and Expected to Vest at December 31, 2019 | 7 years 7 months 9 days |
Exercisable at December 31, 2019 | 6 years 6 months |
Aggregate Intrinsic Value ($ In Millions) | |
Outstanding at December 31, 2019 | $ | $ 38.3 |
Vested and Expected to Vest at December 31, 2019 | $ | 37.2 |
Exercisable at December 31, 2019 | $ | $ 28.4 |
Long-term Equity-based Compen_6
Long-term Equity-based Compensation - Schedule of Outstanding Options (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares Subject to Awards (in shares) | 1,808,815 | 1,434,273 |
Weighted- average Exercise Price Per Share ($) (in dollars per share) | $ 56.53 | $ 46.48 |
Weighted- average Remaining Contractual Life (in Years) | 7 years 7 months 24 days | |
Range of Exercise Prices $20.01 - $30.00 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Range of Exercise Prices, Lower Range Limit (in dollars per share) | $ 20.01 | |
Range of Exercise Prices, Upper Range Limit (in dollars per share) | $ 30 | |
Shares Subject to Awards (in shares) | 150,627 | |
Weighted- average Exercise Price Per Share ($) (in dollars per share) | $ 27.77 | |
Weighted- average Remaining Contractual Life (in Years) | 5 years 7 months 17 days | |
Shares Subject to Awards (in shares) | 150,627 | |
Weighted- average Exercise Price Per Share ($) (in dollars per share) | $ 27.77 | |
Range of Exercise Prices $30.01 - $40.00 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Range of Exercise Prices, Lower Range Limit (in dollars per share) | 30.01 | |
Range of Exercise Prices, Upper Range Limit (in dollars per share) | $ 40 | |
Shares Subject to Awards (in shares) | 173,895 | |
Weighted- average Exercise Price Per Share ($) (in dollars per share) | $ 34.83 | |
Weighted- average Remaining Contractual Life (in Years) | 5 years 4 months 9 days | |
Shares Subject to Awards (in shares) | 165,086 | |
Weighted- average Exercise Price Per Share ($) (in dollars per share) | $ 34.58 | |
Range of Exercise Prices $40.01 - $50.00 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Range of Exercise Prices, Lower Range Limit (in dollars per share) | 40.01 | |
Range of Exercise Prices, Upper Range Limit (in dollars per share) | $ 50 | |
Shares Subject to Awards (in shares) | 401,385 | |
Weighted- average Exercise Price Per Share ($) (in dollars per share) | $ 42.56 | |
Weighted- average Remaining Contractual Life (in Years) | 6 years 9 months 14 days | |
Shares Subject to Awards (in shares) | 313,459 | |
Weighted- average Exercise Price Per Share ($) (in dollars per share) | $ 42.41 | |
Range of Exercise Prices $50.01 - $60.00 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Range of Exercise Prices, Lower Range Limit (in dollars per share) | 50.01 | |
Range of Exercise Prices, Upper Range Limit (in dollars per share) | $ 60 | |
Shares Subject to Awards (in shares) | 461,459 | |
Weighted- average Exercise Price Per Share ($) (in dollars per share) | $ 59.90 | |
Weighted- average Remaining Contractual Life (in Years) | 8 years 25 days | |
Shares Subject to Awards (in shares) | 147,944 | |
Weighted- average Exercise Price Per Share ($) (in dollars per share) | $ 59.89 | |
Range of Exercise Prices $60.01 - $70.00 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Range of Exercise Prices, Lower Range Limit (in dollars per share) | 60.01 | |
Range of Exercise Prices, Upper Range Limit (in dollars per share) | $ 70 | |
Shares Subject to Awards (in shares) | 57,395 | |
Weighted- average Exercise Price Per Share ($) (in dollars per share) | $ 67.04 | |
Weighted- average Remaining Contractual Life (in Years) | 8 years 1 month 20 days | |
Shares Subject to Awards (in shares) | 22,289 | |
Weighted- average Exercise Price Per Share ($) (in dollars per share) | $ 66.85 | |
Range of Exercise Prices $70.01 - $80.00 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Range of Exercise Prices, Lower Range Limit (in dollars per share) | 70.01 | |
Range of Exercise Prices, Upper Range Limit (in dollars per share) | $ 80 | |
Shares Subject to Awards (in shares) | 518,820 | |
Weighted- average Exercise Price Per Share ($) (in dollars per share) | $ 76.27 | |
Weighted- average Remaining Contractual Life (in Years) | 9 years 1 month 2 days | |
Shares Subject to Awards (in shares) | 3,435 | |
Weighted- average Exercise Price Per Share ($) (in dollars per share) | $ 77.76 | |
Range of Exercise Prices $80.01 - $90.00 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Range of Exercise Prices, Lower Range Limit (in dollars per share) | 80.01 | |
Range of Exercise Prices, Upper Range Limit (in dollars per share) | $ 90 | |
Shares Subject to Awards (in shares) | 45,234 | |
Weighted- average Exercise Price Per Share ($) (in dollars per share) | $ 85.44 | |
Weighted- average Remaining Contractual Life (in Years) | 9 years 3 months 18 days | |
Shares Subject to Awards (in shares) | 929 | |
Weighted- average Exercise Price Per Share ($) (in dollars per share) | $ 82.10 | |
Range of Exercise Prices $20.01 - $90.00 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Range of Exercise Prices, Lower Range Limit (in dollars per share) | 20.01 | |
Range of Exercise Prices, Upper Range Limit (in dollars per share) | $ 90 | |
Shares Subject to Awards (in shares) | 1,808,815 | |
Weighted- average Exercise Price Per Share ($) (in dollars per share) | $ 56.53 | |
Weighted- average Remaining Contractual Life (in Years) | 7 years 7 months 24 days | |
Shares Subject to Awards (in shares) | 803,769 | |
Weighted- average Exercise Price Per Share ($) (in dollars per share) | $ 42.15 |
Long-term Equity-based Compen_7
Long-term Equity-based Compensation - Activity Related to Nonvested Restricted Stock (Details) | 12 Months Ended |
Dec. 31, 2019$ / sharesshares | |
Time Vested Restricted Stock Units | |
Number of Stock Units | |
Nonvested Balance at Beginning of Year (in shares) | shares | 316,241 |
Grants in Period (in shares) | shares | 23,383 |
Vested in Period (in shares) | shares | (135,909) |
Forfeited in Period (in shares) | shares | (21,527) |
Nonvested Balance at December 31, 2019 (in shares) | shares | 182,188 |
Weighted- average Grant-date Fair Value Per Unit | |
Nonvested Balance at Beginning of Year (in dollars per share) | $ / shares | $ 65.36 |
Granted (in dollars per share) | $ / shares | 82.56 |
Vested (in dollars per share) | $ / shares | 61.59 |
Forfeited (in dollars per share) | $ / shares | 69.48 |
Nonvested Balance at December 31, 2019 (in dollars per share) | $ / shares | $ 71.12 |
Performance Based Restricted Stock Units | |
Number of Stock Units | |
Nonvested Balance at Beginning of Year (in shares) | shares | 327,300 |
Grants in Period (in shares) | shares | 254,535 |
Vested in Period (in shares) | shares | (204,542) |
Forfeited in Period (in shares) | shares | (16,473) |
Nonvested Balance at December 31, 2019 (in shares) | shares | 360,820 |
Weighted- average Grant-date Fair Value Per Unit | |
Nonvested Balance at Beginning of Year (in dollars per share) | $ / shares | $ 47.14 |
Granted (in dollars per share) | $ / shares | 61.22 |
Vested (in dollars per share) | $ / shares | 29.20 |
Forfeited (in dollars per share) | $ / shares | 65.55 |
Nonvested Balance at December 31, 2019 (in dollars per share) | $ / shares | $ 66.42 |
Long-term Equity-based Compen_8
Long-term Equity-based Compensation - Schedule of Share-based Compensation, Nonemployee Director Deferred Stock Unit Award Plan (Details) | 12 Months Ended |
Dec. 31, 2019$ / sharesshares | |
Number of DSUs | |
Vested Balance at Beginning of the Year (in shares) | shares | 57,340 |
Reduction for Shares Issued on Conversion (in shares) | shares | (12,520) |
Vested Balance at December 31, 2019 (in shares) | shares | 44,820 |
Weighted- average Grant-date Fair Value Per DSU | |
Vested Balance at Beginning of the Year (in dollars per share) | $ / shares | $ 44.89 |
Reduction for Shares Issued on Conversion (in dollars per share) | $ / shares | 45.44 |
Vested Balance at December 31, 2019 (in dollars per share) | $ / shares | $ 44.74 |
Income from Continuing Operat_3
Income from Continuing Operations Per Unrestricted Share - Reconciliation of Numerator and Denominator in Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||||||
Income from Continuing Operations | $ 5 | $ 92.3 | $ 37.5 | $ 53.6 | $ 531.1 | $ 188.4 | $ 119.9 |
Dilutive Effect on Income of Equity-based Compensation Equivalent Shares | 0 | 0 | 0 | ||||
Diluted Income from Continuing Operations Attributed to Unrestricted Shares | $ 529.4 | $ 187.4 | $ 119.1 | ||||
Weighted-average Unrestricted Shares Outstanding (in shares) | 65,880,900 | 58,149,400 | 51,345,600 | ||||
Equity-based Compensation Equivalent Shares (in shares) | 667,200 | 602,500 | 232,300 | ||||
Weighted-average Unrestricted Shares and Equivalent Shares Outstanding Assuming Dilution (in shares) | 66,548,100 | 58,751,900 | 51,577,900 | ||||
Basic Income from Continuing Operations Per Unrestricted Share (in dollars per share) | $ 0.08 | $ 1.42 | $ 0.73 | $ 1.03 | $ 8.04 | $ 3.22 | $ 2.32 |
Diluted Income from Continuing Operations Per Unrestricted Share (in dollars per share) | $ 0.08 | $ 1.40 | $ 0.73 | $ 1.02 | $ 7.96 | $ 3.19 | $ 2.31 |
Common Stock | |||||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||||||
Income from Continuing Operations | $ 529.4 | $ 187.4 | $ 119.1 | ||||
Participating Awards | |||||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||||||
Income from Continuing Operations | $ 1.7 | $ 1 | $ 0.8 |
Income from Continuing Operat_4
Income from Continuing Operations Per Unrestricted Share - Antidilutive Securities Excluded from Computation of Earnings Per Share (Details) - shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of earnings per share, amount (in shares) | 556,400 | 231,300 | 346,600 |
Stock Options | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of earnings per share, amount (in shares) | 556,400 | 231,300 | 346,600 |
Other Comprehensive Income (L_3
Other Comprehensive Income (Loss) And Accumulated Other Comprehensive Income - Other Comprehensive Income (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Other Comprehensive Income (Loss) Before Income Taxes: | |||
Unrealized Holding Gains (Losses) Arising During the Period Before Reclassification Adjustment | $ 433.4 | $ (214.2) | $ 119.1 |
Reclassification Adjustment for Amounts Included in Net Income | (28.1) | (21.9) | (35.3) |
Unrealized Holding Gains (Losses) | 405.3 | (236.1) | 83.8 |
Foreign Currency Translation Adjustments Arising During the Period Before Reclassification Adjustment | 0 | 0 | 1.7 |
Reclassification Adjustment for Amounts Included in Net Income | 0 | 0.3 | 0 |
Foreign Currency Translation Adjustments | 0 | 0.3 | 1.7 |
Unrecognized Postretirement Benefit Costs Arising During the Year | (4.8) | (8) | 3.9 |
Amortization of Net Unrecognized Postretirement Benefit Costs | (3) | 1.1 | (0.6) |
Total Reclassification Adjustments for Amounts Included in Net Income | (3) | 1.1 | (0.6) |
Net Unrecognized Postretirement Benefit Costs | (7.8) | (6.9) | 3.3 |
Gains (Losses) on Cash Flow Hedges During the Year Before Reclassification Adjustment | 0 | 0.9 | (8) |
Reclassification Adjustment for Amounts Included in Net Income | 0.4 | 0.3 | 1.3 |
Gains (Losses) on Cash Flow Hedges | 0.4 | 1.2 | (6.7) |
Other Comprehensive Income (Loss) Before Income Taxes | 397.9 | (241.5) | 82.1 |
Income Tax Benefit (Expense): | |||
Unrealized Holding Gains (Losses) Arising During the Year Before Reclassification Adjustment | (91) | 45 | (38.2) |
Reclassification Adjustment for Amounts Included in Net Income | 5.8 | 4.6 | 12.3 |
Unrealized Holding Gains and Losses | (85.2) | 49.6 | (25.9) |
Foreign Currency Translation Adjustments Arising During the Period Before Reclassification Adjustment | 0 | 0 | (0.6) |
Reclassification Adjustment for Amounts Included in Net Income | 0 | (0.1) | 0 |
Foreign Currency Translation Adjustment | 0 | (0.1) | (0.6) |
Unrecognized Postretirement Benefit Costs Arising During the Year | 1 | 1.7 | (0.8) |
Amortization of Unrecognized Postretirement Benefit Costs | 0.7 | (0.2) | 0.2 |
Total Reclassification Adjustments for Amounts Included in Net Income | 0.7 | (0.2) | 0.2 |
Net Unrecognized Postretirement Benefit Costs | 1.7 | 1.5 | (0.6) |
Gains (Losses) on Cash Flow Hedges During the Year Before Reclassification Adjustment | 0 | (0.2) | 2.8 |
Reclassification Adjustment for Amounts Included in Net Income | (0.1) | (0.1) | (0.4) |
Gains (Losses) on Cash Flow Hedges | (0.1) | (0.3) | 2.4 |
Other Comprehensive Income Tax Benefit (Expense) | $ (83.6) | $ 50.7 | $ (24.7) |
Other Comprehensive Income (L_4
Other Comprehensive Income (Loss) And Accumulated Other Comprehensive Income - Accumulated Other Comprehensive Income (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Net Unrealized Gains on Investments, Net of Income Taxes: | ||
Other Net Unrealized Gains on Investments | $ 439.4 | $ 119.3 |
Net Unrecognized Postretirement Benefit Costs, Net of Income Taxes | (100.6) | (94.5) |
Losses on Cash Flow Hedges, Net of Income Taxes | (2.7) | (3) |
Accumulated Other Comprehensive Income | $ 336.1 | $ 21.8 |
Other Comprehensive Income (L_5
Other Comprehensive Income (Loss) And Accumulated Other Comprehensive Income - Reclassification from AOCI to Consolidated Statements of Income (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Net Impairment Losses Recognized in Earnings | $ (1.7) | $ (1.8) | $ (6.7) | $ (3.6) | $ (2.2) | $ (1.8) | $ 0 | $ (0.5) | $ (13.8) | $ (4.5) | $ (14.3) |
Income Tax Benefit (Expense) | (32.2) | (32.5) | (26.4) | (39.4) | (1.1) | 11.8 | (8) | (13.4) | (130.5) | (10.7) | (41.2) |
Net Income | $ 124.7 | $ 129 | $ 122.1 | $ 155.3 | $ 6.5 | $ 92.2 | $ 37.6 | $ 53.8 | 531.1 | 190.1 | 120.9 |
Reclassification out of Accumulated Other Comprehensive Income | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Net Income | 24.3 | 16.2 | 22.5 | ||||||||
Accumulated Net Unrealized Investment Gain (Loss) | Reclassification out of Accumulated Other Comprehensive Income | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Net Realized Gains on Sales of Investments | 41.9 | 26.4 | 49.6 | ||||||||
Net Impairment Losses Recognized in Earnings | (13.8) | (4.5) | (14.3) | ||||||||
Total Before Income Taxes | 28.1 | 21.9 | 35.3 | ||||||||
Income Tax Benefit (Expense) | (5.8) | (4.6) | (12.3) | ||||||||
Net Income | 22.3 | 17.3 | 23 | ||||||||
Accumulated Defined Benefit Plans Adjustment | Reclassification out of Accumulated Other Comprehensive Income | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Interest and Other Expenses (Income) | 3 | (1.1) | 0.6 | ||||||||
Income Tax Benefit (Expense) | (0.7) | 0.2 | (0.2) | ||||||||
Net Income | 2.3 | (0.9) | 0.4 | ||||||||
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent | Reclassification out of Accumulated Other Comprehensive Income | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Interest and Other Expenses (Income) | (0.4) | (0.3) | (1.3) | ||||||||
Income Tax Benefit (Expense) | 0.1 | 0.1 | 0.4 | ||||||||
Net Income | $ (0.3) | $ (0.2) | $ (0.9) |
Income from Investments - Net
Income from Investments - Net Investment Income (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Net Investment Income [Line Items] | |||||||||||
Investment income | $ 383.4 | $ 359.9 | $ 345 | ||||||||
Investment expenses | 19.1 | 19 | 17.8 | ||||||||
Net investment income | $ 93.9 | $ 91.7 | $ 96 | $ 82.7 | $ 91.3 | $ 92 | $ 78.4 | $ 79.2 | 364.3 | 340.9 | 327.2 |
Interest on Fixed Income Securities | |||||||||||
Net Investment Income [Line Items] | |||||||||||
Investment income | 299.4 | 268.9 | 246.6 | ||||||||
Dividends on Equity Securities Excluding Alternative Investments | |||||||||||
Net Investment Income [Line Items] | |||||||||||
Investment income | 22.9 | 13.6 | 9.3 | ||||||||
Total Alternative Investments | |||||||||||
Net Investment Income [Line Items] | |||||||||||
Investment income | 19 | 37.4 | 54.7 | ||||||||
Equity Method Limited Liability Investments | |||||||||||
Net Investment Income [Line Items] | |||||||||||
Investment income | 1 | 11 | 24.8 | ||||||||
Fair Value Option Investments | |||||||||||
Net Investment Income [Line Items] | |||||||||||
Investment income | 0 | 0 | 1.3 | ||||||||
Limited Liability Investments Included in Equity Securities | |||||||||||
Net Investment Income [Line Items] | |||||||||||
Investment income | 18 | 26.4 | 28.6 | ||||||||
Short-term Investments | |||||||||||
Net Investment Income [Line Items] | |||||||||||
Investment income | 8.2 | 7 | 1.6 | ||||||||
Loans to Policyholders | |||||||||||
Net Investment Income [Line Items] | |||||||||||
Investment income | 22.6 | 22.5 | 21.6 | ||||||||
Real Estate | |||||||||||
Net Investment Income [Line Items] | |||||||||||
Investment income | 9.8 | 9.6 | 10.7 | ||||||||
Investment expenses | 9.6 | 9.7 | 10.5 | ||||||||
Other | |||||||||||
Net Investment Income [Line Items] | |||||||||||
Investment income | 1.5 | 0.9 | 0.5 | ||||||||
Investment expenses | $ 9.5 | $ 9.3 | $ 7.3 |
Income from Investments - Narra
Income from Investments - Narrative (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Investment Income, Net [Abstract] | ||
Accrued investment income | $ 78.7 | $ 77.9 |
Income from Investments - Ne_2
Income from Investments - Net Realized Gains on Sales of Investments (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Equity Securities: | |||||||||||
Realized Investment Gains | $ 46.9 | $ 37.6 | $ 56.9 | ||||||||
Realized Investment Losses | (5) | (11.2) | (1) | ||||||||
Net Gains on Trading Securities | 0 | 0 | 0.6 | ||||||||
Net Realized Gains on Sales of Investments | $ 2.8 | $ 1.7 | $ 21.3 | $ 16.1 | $ 16.4 | $ 3.6 | $ 3.8 | $ 2.6 | 41.9 | 26.4 | 56.5 |
Fixed Maturities: | |||||||||||
Fixed Maturities: | |||||||||||
Gains on Sales | 41.1 | 25.3 | 8.4 | ||||||||
Losses on Sales | (4.8) | (11.1) | (0.9) | ||||||||
Equity Securities | |||||||||||
Equity Securities: | |||||||||||
Gains on Sales | 5.8 | 12.3 | 42 | ||||||||
Losses on Sales | (0.2) | 0 | 0 | ||||||||
Real Estate | |||||||||||
Equity Securities: | |||||||||||
Realized Investment Gains | 0 | 0 | 6.4 | ||||||||
Other | |||||||||||
Equity Securities: | |||||||||||
Realized Investment Gains | 0 | 0 | 0.1 | ||||||||
Realized Investment Losses | $ 0 | $ (0.1) | $ (0.1) |
Income from Investments - Ne_3
Income from Investments - Net Impairment Losses Recognized in Earnings (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Net Investment Income [Line Items] | |||||||||||
Net Impairment Losses Recognized in Earnings | $ (1.7) | $ (1.8) | $ (6.7) | $ (3.6) | $ (2.2) | $ (1.8) | $ 0 | $ (0.5) | $ (13.8) | $ (4.5) | $ (14.3) |
Fixed Maturities: | |||||||||||
Net Investment Income [Line Items] | |||||||||||
Net Impairment Losses Recognized in Earnings | (13.3) | (2) | (12.1) | ||||||||
Equity Securities | |||||||||||
Net Investment Income [Line Items] | |||||||||||
Net Impairment Losses Recognized in Earnings | $ (0.5) | $ (2.5) | $ (2.2) |
Insurance Expenses (Details)
Insurance Expenses (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Insurance Expenses [Abstract] | |||||||||||
Commissions | $ 708.8 | $ 558.7 | $ 425.6 | ||||||||
General Expenses | 278 | 231.9 | 196.2 | ||||||||
Taxes, Licenses and Fees | 93.5 | 71 | 50.7 | ||||||||
Total Costs Incurred | 1,080.3 | 861.6 | 672.5 | ||||||||
Policy Acquisition Costs: | |||||||||||
Deferred | (475.2) | (481.5) | (351.6) | ||||||||
Amortized | 408.3 | 377.1 | 318.3 | ||||||||
Net Policy Acquisition Costs Amortized | (66.9) | (104.4) | (33.3) | ||||||||
Amortization of VOBA | 6.3 | 143.3 | 5.1 | ||||||||
Insurance Expenses | $ 265.4 | $ 256 | $ 263.5 | $ 234.8 | $ 273.2 | $ 296 | $ 171.2 | $ 160.1 | $ 1,019.7 | $ 900.5 | $ 644.3 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | ||||
Unrecognized tax benefits | $ 0 | $ 4,400,000 | $ 8,100,000 | $ 5,100,000 |
Unrecognized tax benefit that would not impact effective tax rate, tax position with uncertain timing of deductibility | 3,700,000 | 7,600,000 | ||
Accrued interest included in unrecognized tax benefits | 700,000 | 500,000 | ||
Income taxes paid | $ 68,100,000 | $ 200,000 | $ 13,000,000 |
Income Taxes - Schedule of Temp
Income Taxes - Schedule of Temporary Differences That Give Rise to Net Deferred Income Tax Assets (Liabilities) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred Income Tax Assets: | ||
Insurance Reserves | $ 16.2 | $ 17 |
Unearned Premium Reserves | 64.5 | 59.1 |
Tax Capitalization of Policy Acquisition Costs | 44.6 | 44 |
Payroll and Employee Benefit Accruals | 35 | 49.6 |
Net Operating Loss Carryforwards | 3.3 | 5.5 |
Other | 12.5 | 11.2 |
Total Deferred Income Tax Assets | 176.1 | 186.4 |
Deferred Income Tax Liabilities: | ||
Investments | 155.6 | 33.2 |
Deferred Policy Acquisition Costs | 112.9 | 98.7 |
Life VIF and P&C Customer Relationships | 5.3 | 6 |
Goodwill and Other Intangible Assets Acquired | 39.3 | 45.2 |
Depreciable Assets | 37.6 | 27.1 |
Other | 3.6 | 2.4 |
Total Deferred Income Tax Liabilities | 354.3 | 212.6 |
Net Deferred Income Tax Liabilities | $ 178.2 | $ 26.2 |
Income Taxes - Summary of Feder
Income Taxes - Summary of Federal Net Operating Loss Carryforwards and Related Deferred Income Tax Assets (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Income Tax Contingency [Line Items] | ||
Deferred Tax Asset | $ 3.3 | $ 5.5 |
Internal Revenue Service (IRS) | ||
Income Tax Contingency [Line Items] | ||
NOL Carry-forwards | 15.6 | |
Deferred Tax Asset | 3.3 | |
Internal Revenue Service (IRS) | 2027 | ||
Income Tax Contingency [Line Items] | ||
NOL Carry-forwards | 11.2 | |
Deferred Tax Asset | 2.4 | |
Internal Revenue Service (IRS) | 2028 | ||
Income Tax Contingency [Line Items] | ||
NOL Carry-forwards | 4.4 | |
Deferred Tax Asset | $ 0.9 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Unrecognized Tax Benefits (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Liabilities for Unrecognized Tax Benefits at Beginning of Year | $ 4,400,000 | $ 8,100,000 | $ 5,100,000 |
Additions for Tax Positions of Current Year | 0 | 700,000 | 3,100,000 |
Reductions for Tax Positions of Prior Years | (4,400,000) | (4,400,000) | 0 |
Reduction for Expiration of Federal Statute of Limitations | 0 | 0 | (100,000) |
Liabilities for Unrecognized Tax Benefits at End of Year | $ 0 | $ 4,400,000 | $ 8,100,000 |
Income Taxes - Income Tax Benef
Income Taxes - Income Tax Benefit (Expense) from Continuing Operations (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||||||||||
Current Income Tax Benefit (Expense) | $ (66.4) | $ 32.2 | $ (23.1) | ||||||||
Deferred Income Tax Expense | (68.5) | (46.5) | (15.1) | ||||||||
(Increase) Decrease Unrecognized Tax Benefits | 4.4 | 3.6 | (3) | ||||||||
Income Tax Expense | $ (32.2) | $ (32.5) | $ (26.4) | $ (39.4) | $ (1.1) | $ 11.8 | $ (8) | $ (13.4) | $ (130.5) | $ (10.7) | $ (41.2) |
Income Taxes - Statutory Federa
Income Taxes - Statutory Federal Income Tax Expense, Effective Income Tax Expense, Rates (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Amount | |||||||||||
Statutory Federal Income Tax Expense | $ (138.9) | $ (41.8) | $ (56.4) | ||||||||
Tax-exempt Income and Dividends Received Deduction | 4.3 | 4.8 | 9.8 | ||||||||
Stock-Based Compensation | 4.4 | 1.4 | 0.4 | ||||||||
Nondeductible Executive Compensation | (2.5) | (1.4) | 0 | ||||||||
Tax Reform | 0 | 26.4 | 7.4 | ||||||||
Other, Net | 2.2 | (0.1) | (2.4) | ||||||||
Income Tax Expense | $ (32.2) | $ (32.5) | $ (26.4) | $ (39.4) | $ (1.1) | $ 11.8 | $ (8) | $ (13.4) | $ (130.5) | $ (10.7) | $ (41.2) |
Rate | |||||||||||
Statutory Federal Income Tax Expense | 21.00% | 21.00% | 35.00% | ||||||||
Tax-exempt Income and Dividends Received Deduction | (0.70%) | (2.40%) | (6.00%) | ||||||||
Stock-Based Compensation | (0.70%) | (0.70%) | (0.20%) | ||||||||
Nondeductible Executive Compensation | 0.40% | 0.70% | 0.00% | ||||||||
Tax Reform | 0.00% | (13.30%) | (4.60%) | ||||||||
Other, Net | (0.30%) | 0.10% | 1.40% | ||||||||
Effective Income Tax Benefit (Expense) from Continuing Operations | 19.70% | 5.40% | 25.60% |
Income Taxes - Comprehensive In
Income Taxes - Comprehensive Income Tax Benefit and Expense (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Operating Loss Carryforwards [Line Items] | |||||||||||
Income Tax Expense | $ (32.2) | $ (32.5) | $ (26.4) | $ (39.4) | $ (1.1) | $ 11.8 | $ (8) | $ (13.4) | $ (130.5) | $ (10.7) | $ (41.2) |
Unrealized Depreciation (Appreciation) on Securities | (85.2) | 49.6 | (25.9) | ||||||||
Foreign Currency Translation Adjustments on Investments | 0 | (0.1) | (0.6) | ||||||||
Tax Effects from Postretirement Benefit Plans | 1.7 | 1.5 | (0.6) | ||||||||
Gains (Losses) on Cash Flow Hedge | (0.1) | (0.3) | 2.4 | ||||||||
Comprehensive Income Tax (Expense) Benefit | (214.1) | 39.4 | (66.4) | ||||||||
Continuing Operations | |||||||||||
Operating Loss Carryforwards [Line Items] | |||||||||||
Income Tax Expense | (130.5) | (10.7) | (41.2) | ||||||||
Discontinued Operations | |||||||||||
Operating Loss Carryforwards [Line Items] | |||||||||||
Income Tax Expense | $ 0 | $ (0.6) | $ (0.5) |
Pension Benefits - Narrative (D
Pension Benefits - Narrative (Details) $ in Millions | Aug. 22, 2019USD ($) | Jul. 13, 2018USD ($) | Dec. 31, 2019USD ($)employees | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) |
Defined Benefit Plan Disclosure [Line Items] | |||||
Employer Contributions | $ 55.3 | $ 5.1 | |||
Unrecognized pension gain (loss) arising during the year | $ (4.8) | $ (8) | $ 3.9 | ||
Defined contribution plan, cost | $ 26 | 15.1 | 10.6 | ||
Pension Plans, Defined Benefit | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Number of participants and beneficiaries | employees | 8,650 | ||||
Number of active employees | employees | 1,250 | ||||
Contribution as a percentage of compensation | 3.00% | ||||
Actuarial loss amortization period | 22 years | ||||
Amounts that will be amortized from AOCI in next fiscal Year | $ 5.9 | ||||
Employer Contributions | 55.3 | 5.1 | |||
Unfunded liability | (4.1) | 55.2 | |||
Pension expense | (5.4) | (4.3) | (7.7) | ||
Unrecognized pension gain (loss) arising during the year | (4.2) | (11.5) | 4.9 | ||
Supplemental Employee Retirement Plan | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Unfunded liability | 28.9 | 24.2 | |||
Pension expense | 1 | 0.8 | 0.8 | ||
Unrecognized pension gain (loss) arising during the year | $ (5.6) | $ 1.3 | $ (1.6) |
Pension Benefits - Changes in F
Pension Benefits - Changes in Fair Value of Plan Assets and Changes in Accumulated Benefit Obligations (Details) - USD ($) $ in Millions | Aug. 22, 2019 | Jul. 13, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Employer Contributions | $ 55.3 | $ 5.1 | |||
Pension Plans, Defined Benefit | |||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Fair Value of Plans’ Assets at Beginning of Year | $ 525.3 | $ 579.8 | |||
Actual Return on Plan Assets | 113.2 | (32.1) | |||
Employer Contributions | 55.3 | 5.1 | |||
Benefits Paid | (29.2) | (27.5) | |||
Fair Value of Plan Assets at End of Year | 664.6 | 525.3 | $ 579.8 | ||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||||
Accumulated Postretirement Benefit Obligation at Beginning of Year | 580.5 | 637.2 | |||
Interest Cost | 22.3 | 20.3 | 20.6 | ||
Benefits Paid | (29.2) | (27.5) | |||
Actuarial (Gains) Losses | 86.9 | (49.5) | |||
Projected Benefit Obligation at End of Year | 660.5 | 580.5 | $ 637.2 | ||
Funded Status—Plan Assets in Excess (Deficit) of Projected Benefit Obligation | 4.1 | (55.2) | |||
Unamortized Amount Reported in AOCI at End of Year | (145.7) | (144.4) | |||
Accumulated Benefit Obligation at End of Year | $ 660.4 | $ 580.3 |
Pension Benefits - Actuarial A
Pension Benefits - Actuarial Assumptions for Project Benefit Obligations (Details) - Pension Plans, Defined Benefit | Dec. 31, 2019 | Dec. 31, 2018 |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Discount Rate | 3.21% | 4.28% |
Rate of Increase in Future Compensation Levels | 3.40% | 3.40% |
Pension Benefits - Weighted Ave
Pension Benefits - Weighted Average Asset Allocation for Pension Plans (Details) - Pension Plans, Defined Benefit | Dec. 31, 2019 | Dec. 31, 2018 |
Defined Benefit Plan Disclosure [Line Items] | ||
Weighted-average asset allocations | 100.00% | 100.00% |
Cash and Short-term Investments | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Weighted-average asset allocations | 2.00% | 1.00% |
Corporate Bonds and Notes | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Weighted-average asset allocations | 40.00% | 41.00% |
Common and Preferred Stocks | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Weighted-average asset allocations | 35.00% | 37.00% |
Bond Exchange Traded Funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Weighted-average asset allocations | 14.00% | 6.00% |
Other Assets | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Weighted-average asset allocations | 9.00% | 15.00% |
Pension Benefits - Fair Value P
Pension Benefits - Fair Value Plan Assets Measurements (Details) - Pension Plans, Defined Benefit - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | $ 664.6 | $ 525.3 | $ 579.8 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 400.2 | 256.4 | |
Significant Other Observable Inputs (Level 2) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 128.9 | 122.9 | |
Significant Unobservable Inputs (Level 3) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 0 | 0.3 | $ 0.3 |
United States Government and Government Agencies and Authorities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 158.4 | 110.9 | |
United States Government and Government Agencies and Authorities | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 158.4 | 110.9 | |
United States Government and Government Agencies and Authorities | Significant Other Observable Inputs (Level 2) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 0 | 0 | |
United States Government and Government Agencies and Authorities | Significant Unobservable Inputs (Level 3) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 0 | 0 | |
States and Political Subdivisions | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 0.1 | 2.1 | |
States and Political Subdivisions | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 0 | 0 | |
States and Political Subdivisions | Significant Other Observable Inputs (Level 2) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 0.1 | 2.1 | |
States and Political Subdivisions | Significant Unobservable Inputs (Level 3) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 0 | 0 | |
Corporate Bonds and Notes | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 107.3 | 103.4 | |
Corporate Bonds and Notes | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 0 | 0 | |
Corporate Bonds and Notes | Significant Other Observable Inputs (Level 2) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 107.3 | 103.4 | |
Corporate Bonds and Notes | Significant Unobservable Inputs (Level 3) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 0 | 0 | |
Preferred Stock Finance Insurance and Real Estate [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 0 | ||
Preferred Stock Finance Insurance and Real Estate [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 0 | ||
Preferred Stock Finance Insurance and Real Estate [Member] | Significant Other Observable Inputs (Level 2) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 0 | ||
Preferred Stock Finance Insurance and Real Estate [Member] | Significant Unobservable Inputs (Level 3) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 0 | ||
Common Stocks Manufacturing [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 0 | ||
Common Stocks Manufacturing [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 0 | ||
Common Stocks Manufacturing [Member] | Significant Other Observable Inputs (Level 2) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 0 | ||
Common Stocks Manufacturing [Member] | Significant Unobservable Inputs (Level 3) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 0 | ||
Other Industries | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 161.5 | 123.4 | |
Other Industries | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 140 | 106 | |
Other Industries | Significant Other Observable Inputs (Level 2) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 21.5 | 17.4 | |
Other Industries | Significant Unobservable Inputs (Level 3) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 0 | 0 | |
Collective Investment Funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 71.8 | 68.6 | |
Collective Investment Funds | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 0 | 0 | |
Collective Investment Funds | Significant Other Observable Inputs (Level 2) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 0 | 0 | |
Collective Investment Funds | Significant Unobservable Inputs (Level 3) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 0 | 0 | |
Bond Exchange Traded Funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 92.8 | 34.1 | |
Bond Exchange Traded Funds | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 92.8 | 34.1 | |
Bond Exchange Traded Funds | Significant Other Observable Inputs (Level 2) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 0 | 0 | |
Bond Exchange Traded Funds | Significant Unobservable Inputs (Level 3) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 0 | 0 | |
Limited Liability Companies and Limited Partnerships | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 63.7 | 77.1 | |
Limited Liability Companies and Limited Partnerships | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 0 | 0 | |
Limited Liability Companies and Limited Partnerships | Significant Other Observable Inputs (Level 2) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 0 | 0 | |
Limited Liability Companies and Limited Partnerships | Significant Unobservable Inputs (Level 3) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 0 | 0 | |
Short-term Investments | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 10 | 4.4 | |
Short-term Investments | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 10 | 4.4 | |
Short-term Investments | Significant Other Observable Inputs (Level 2) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 0 | 0 | |
Short-term Investments | Significant Unobservable Inputs (Level 3) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 0 | 0 | |
Receivables and Other | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | (1) | 1.3 | |
Receivables and Other | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | (1) | 1 | |
Receivables and Other | Significant Other Observable Inputs (Level 2) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 0 | 0 | |
Receivables and Other | Significant Unobservable Inputs (Level 3) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 0 | 0.3 | |
Measured at Net Asset Value | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 135.5 | 145.7 | |
Measured at Net Asset Value | United States Government and Government Agencies and Authorities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 0 | 0 | |
Measured at Net Asset Value | States and Political Subdivisions | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 0 | 0 | |
Measured at Net Asset Value | Corporate Bonds and Notes | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 0 | 0 | |
Measured at Net Asset Value | Preferred Stock Finance Insurance and Real Estate [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 0 | ||
Measured at Net Asset Value | Common Stocks Manufacturing [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 0 | ||
Measured at Net Asset Value | Other Industries | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 0 | 0 | |
Measured at Net Asset Value | Collective Investment Funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 71.8 | 68.6 | |
Measured at Net Asset Value | Bond Exchange Traded Funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 0 | 0 | |
Measured at Net Asset Value | Limited Liability Companies and Limited Partnerships | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 63.7 | 77.1 | |
Measured at Net Asset Value | Short-term Investments | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 0 | 0 | |
Measured at Net Asset Value | Receivables and Other | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | $ 0 | $ 0 |
Pension Benefits - Changes in_2
Pension Benefits - Changes in Fair Value of Pension Plans Level 3 (Details) - Pension Plans, Defined Benefit - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair Value of Plans’ Assets at Beginning of Year | $ 525.3 | $ 579.8 |
Fair Value of Plan Assets at End of Year | 664.6 | 525.3 |
Significant Unobservable Inputs (Level 3) | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair Value of Plans’ Assets at Beginning of Year | 0.3 | 0.3 |
Purchases, Sales and Settlements, Net | (0.3) | 0 |
Fair Value of Plan Assets at End of Year | $ 0 | $ 0.3 |
Pension Benefits - Components o
Pension Benefits - Components of Comprehensive Pension Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Unrecognized Pension Gain (Loss) Arising During the Year | $ 4.8 | $ 8 | $ (3.9) |
Amortization of Accumulated Unrecognized Pension Loss | 3 | (1.1) | 0.6 |
Pension Plans, Defined Benefit | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service Cost Earned During the Year | 0 | 0 | 0 |
Interest Cost on Projected Benefit Obligation | 22.3 | 20.3 | 20.6 |
Expected Return on Plan Assets | (30.6) | (28.9) | (30.9) |
Amortization of Actuarial Loss | 2.9 | 4.3 | 2.6 |
Pension Income Recognized in Consolidated Statements of Income | (5.4) | (4.3) | (7.7) |
Unrecognized Pension Gain (Loss) Arising During the Year | 4.2 | 11.5 | (4.9) |
Amortization of Accumulated Unrecognized Pension Loss | (2.9) | (4.3) | (2.6) |
Comprehensive Pension Expense (Income) | $ (4.1) | $ 2.9 | $ (15.2) |
Pension Benefits - Actuarial As
Pension Benefits - Actuarial Assumptions Pension Expense (Details) - Pension Plans, Defined Benefit | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Weighted-average Discount Rate | 4.28% | 3.63% | 4.19% |
Service Cost Discount Rate | 4.26% | 3.61% | 4.15% |
Interest Cost Discount Rate | 3.91% | 3.26% | 3.52% |
Rate of Increase in Future Compensation Levels | 3.40% | 3.40% | 2.56% |
Expected Long Term Rate of Return on Plan Assets | 5.70% | 5.35% | 5.80% |
Pension Benefits - Pension Bene
Pension Benefits - Pension Benefit Payments (Details) - Pension Plans, Defined Benefit $ in Millions | Dec. 31, 2019USD ($) |
Defined Benefit Plan Disclosure [Line Items] | |
Estimated Pension Benefit Payments, 2020 | $ 31.4 |
Estimated Pension Benefit Payments, 2021 | 32.1 |
Estimated Pension Benefit Payments, 2022 | 33.2 |
Estimated Pension Benefit Payments, 2023 | 34 |
Estimated Pension Benefit Payments, 2024 | 34.7 |
Estimated Pension Benefit Payments, 2025 - 2029 | $ 179.1 |
Postretirement Benefits Other_3
Postretirement Benefits Other Than Pensions - Narrative (Details) $ in Millions | 12 Months Ended | |||
Dec. 31, 2019USD ($)employees | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Other Postretirement Benefit Plan, Defined Benefit | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Number of retired employees covered | employees | 650 | |||
Number of active employees covered | employees | 525 | |||
Pre-tax reduction to its accumulated postretirement benefit obligation | $ 0 | $ 0 | $ (1.3) | $ 11 |
Effect of one percentage point increase on accumulated postretirement benefit obligation | 0.6 | $ 0.8 | ||
Amounts that will be amortized from AOCI in next fiscal Year | 3.3 | |||
Estimated future employer contributions in next fiscal year | $ 1.3 | |||
Medical Benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Health care cost trend rate assumed for next fiscal year | 7.50% | 7.50% | ||
Health care cost trend rate assumed for future years | 4.80% | 4.80% | ||
Prescription Drug Benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Health care cost trend rate assumed for next fiscal year | 10.00% | 10.00% | ||
Health care cost trend rate assumed for future years | 4.80% | 4.80% |
Postretirement Benefits Other_4
Postretirement Benefits Other Than Pensions - Changes in Fair Value of Plan Assets and Changes in Accumulated Benefit Obligations (Details) - USD ($) $ in Millions | Aug. 22, 2019 | Jul. 13, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Employer Contributions | $ 55.3 | $ 5.1 | |||
Other Postretirement Benefit Plan, Defined Benefit | |||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Fair Value of Plans’ Assets at Beginning of Year | $ 0 | $ 0 | |||
Employer Contributions | 1.1 | 1.1 | |||
Plan Participants’ Contributions | 0.3 | 0.3 | |||
Benefits Paid | (1.4) | (1.4) | |||
Fair Value of Plan Assets at End of Year | 0 | 0 | $ 0 | ||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||||
Accumulated Postretirement Benefit Obligation at Beginning of Year | 15 | 14.4 | |||
Obligation from Acquisition of Infinity | 0 | 3.9 | |||
Service Cost | 0.2 | 0.2 | 0.1 | ||
Interest Cost | 0.4 | 0.4 | 0.4 | ||
Plan Participants’ Contributions | 0.3 | 0.3 | |||
Benefits Paid | (1.4) | (1.4) | |||
Medicare Part D Subsidy Received | 0 | 0.2 | |||
Actuarial (Gains) Losses | (1.7) | (3) | |||
Projected Benefit Obligation at End of Year | 12.8 | 15 | $ 14.4 | ||
Funded Status—Plan Assets in Excess (Deficit) of Projected Benefit Obligation | (12.8) | (15) | |||
Unamortized Actuarial Gain Reported in AOCI at End of Year | $ 23.8 | $ 24.9 |
Postretirement Benefits Other_5
Postretirement Benefits Other Than Pensions - Actuarial Assumptions of OPEB Accumulated Benefit Obligation (Details) - Other Postretirement Benefit Plan, Defined Benefit | Dec. 31, 2019 | Dec. 31, 2018 |
Defined Benefit Plan Disclosure [Line Items] | ||
Discount Rate | 2.91% | 4.02% |
Rate of Increase in Future Compensation Levels | 2.20% | 2.20% |
Postretirement Benefits Other_6
Postretirement Benefits Other Than Pensions - Components Of Comprehensive OPEB (Income) Expense (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Unrecognized OPEB Gain Arising During the Year | $ 4.8 | $ 8 | $ (3.9) | |
Amortization of Accumulated Unrecognized OPEB Gain | 3 | (1.1) | 0.6 | |
Other Postretirement Benefit Plan, Defined Benefit | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service Cost Earned During the Year | 0.2 | 0.2 | 0.1 | |
Interest Cost on Accumulated Postretirement Benefit Obligation | 0.4 | 0.4 | 0.4 | |
Amortization of Prior Service Credit | (1.3) | (1.3) | 0 | |
Amortization of Accumulated Unrecognized OPEB Gain | (2.4) | (1.8) | (1.8) | |
Pension Income Recognized in Consolidated Statements of Income | (3.1) | (2.5) | (1.3) | |
Unrecognized OPEB Gain Arising During the Year | (1.7) | (3) | (0.5) | |
Prior Service Credit Arising During the Year from Plan Amendments | 0 | 0 | (1.3) | $ 11 |
Amortization of Prior Service Credit | 1.3 | 1.3 | 0 | |
Amortization of Accumulated Unrecognized OPEB Gain | 2.4 | 1.8 | 1.8 | |
Comprehensive OPEB Income | $ (1.1) | $ (2.4) | $ (1.3) |
Postretirement Benefits Other_7
Postretirement Benefits Other Than Pensions - Actuarial Assumptions of OPEB Expense (Details) - Other Postretirement Benefit Plan, Defined Benefit | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Weighted-average Discount Rate | 4.08% | 3.36% | 3.61% |
Service Cost Discount Rate | 4.16% | 3.52% | 3.79% |
Interest Cost Discount Rate | 3.69% | 2.96% | 2.92% |
Rate of Increase in Future Compensation Levels | 2.20% | 2.20% | 2.60% |
Postretirement Benefits Other_8
Postretirement Benefits Other Than Pensions - Benefit Payments Net of Expected Medicare Part D Subsidy (Details) - Other Postretirement Benefit Plan, Defined Benefit $ in Millions | Dec. 31, 2019USD ($) |
Estimated Benefit Payments Excluding Medicare Part D Subsidy | |
2020 | $ 1.3 |
2021 | 1.3 |
2022 | 1.3 |
2023 | 1.2 |
2024 | 1.2 |
2025-2029 | 4.5 |
Expected Medicare Part D Subsidy | |
2020 | 0 |
2021 | 0 |
2022 | 0 |
2023 | 0 |
2024 | 0 |
2025-2029 | 0 |
Net Estimated Benefit Payments | |
2020 | 1.3 |
2021 | 1.3 |
2022 | 1.3 |
2023 | 1.2 |
2024 | 1.2 |
2025-2029 | $ 4.5 |
Business Segments - Narrative (
Business Segments - Narrative (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019USD ($)segment | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Segment Reporting [Abstract] | |||
Number of operating segments | segment | 3 | ||
Allocated corporate expenses | $ | $ 103.9 | $ 68 | $ 50.8 |
Business Segments - Segment Ass
Business Segments - Segment Assets (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Segment Reporting Information [Line Items] | ||
Total Assets | $ 12,989.1 | $ 11,544.9 |
Specialty Property & Casualty Insurance | ||
Segment Reporting Information [Line Items] | ||
Total Assets | 4,435.2 | 3,541 |
Preferred Property & Casualty Insurance | ||
Segment Reporting Information [Line Items] | ||
Total Assets | 1,549.8 | 1,567.7 |
Life & Health Insurance | ||
Segment Reporting Information [Line Items] | ||
Total Assets | 5,847.9 | 5,117.2 |
Corporate and Other, Net | ||
Segment Reporting Information [Line Items] | ||
Total Assets | $ 1,156.2 | $ 1,319 |
Business Segments - Earned Prem
Business Segments - Earned Premiums by Product Line (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Entity-Wide Information, Revenue from External Customer [Line Items] | |||||||||||
Earned Premiums | $ 1,145.8 | $ 1,135.2 | $ 1,116.6 | $ 1,074.8 | $ 1,063.6 | $ 1,052.9 | $ 658.1 | $ 609.8 | $ 4,472.4 | $ 3,384.4 | $ 2,350 |
Operating Segments | Specialty Property & Casualty Insurance | |||||||||||
Entity-Wide Information, Revenue from External Customer [Line Items] | |||||||||||
Earned Premiums | 3,078.4 | 2,027.4 | 1,005.7 | ||||||||
Operating Segments | Specialty Property & Casualty Insurance | Specialty Automobile | |||||||||||
Entity-Wide Information, Revenue from External Customer [Line Items] | |||||||||||
Earned Premiums | 2,825.6 | 1,889.5 | 954.3 | ||||||||
Operating Segments | Specialty Property & Casualty Insurance | Commercial Automobile | |||||||||||
Entity-Wide Information, Revenue from External Customer [Line Items] | |||||||||||
Earned Premiums | 252.8 | 137.9 | 51.4 | ||||||||
Operating Segments | Preferred Property & Casualty Insurance | |||||||||||
Entity-Wide Information, Revenue from External Customer [Line Items] | |||||||||||
Earned Premiums | 750.3 | 730.7 | 730.3 | ||||||||
Operating Segments | Preferred Property & Casualty Insurance | Preferred Automobile | |||||||||||
Entity-Wide Information, Revenue from External Customer [Line Items] | |||||||||||
Earned Premiums | 470.2 | 440.2 | 422.8 | ||||||||
Operating Segments | Preferred Property & Casualty Insurance | Homeowners | |||||||||||
Entity-Wide Information, Revenue from External Customer [Line Items] | |||||||||||
Earned Premiums | 241.3 | 250.1 | 264.8 | ||||||||
Operating Segments | Preferred Property & Casualty Insurance | Other Personal Lines | |||||||||||
Entity-Wide Information, Revenue from External Customer [Line Items] | |||||||||||
Earned Premiums | 38.8 | 40.4 | 42.7 | ||||||||
Operating Segments | Life & Health Insurance | |||||||||||
Entity-Wide Information, Revenue from External Customer [Line Items] | |||||||||||
Earned Premiums | 643.7 | 626.3 | 614 | ||||||||
Operating Segments | Life & Health Insurance | Life | |||||||||||
Entity-Wide Information, Revenue from External Customer [Line Items] | |||||||||||
Earned Premiums | 384.6 | 378.4 | 379.7 | ||||||||
Operating Segments | Life & Health Insurance | Accident & Health | |||||||||||
Entity-Wide Information, Revenue from External Customer [Line Items] | |||||||||||
Earned Premiums | 190.9 | 177.5 | 161.7 | ||||||||
Operating Segments | Life & Health Insurance | Property | |||||||||||
Entity-Wide Information, Revenue from External Customer [Line Items] | |||||||||||
Earned Premiums | $ 68.2 | $ 70.4 | $ 72.6 |
Business Segments - Segment Rev
Business Segments - Segment Revenues (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | |||||||||||
Earned Premiums | $ 1,145.8 | $ 1,135.2 | $ 1,116.6 | $ 1,074.8 | $ 1,063.6 | $ 1,052.9 | $ 658.1 | $ 609.8 | $ 4,472.4 | $ 3,384.4 | $ 2,350 |
Net Investment Income | 93.9 | 91.7 | 96 | 82.7 | 91.3 | 92 | 78.4 | 79.2 | 364.3 | 340.9 | 327.2 |
Other Income | 3.7 | 7.2 | 22.7 | 1.9 | 2 | 37.8 | 1.2 | 1.2 | 35.5 | 42.2 | 4 |
Total Revenues | 1,283.7 | 1,243.8 | 1,275.4 | 1,236.3 | 1,094.7 | 1,195.5 | 741.9 | 693 | 5,039.2 | 3,725.1 | 2,723.4 |
Income (Loss) from Change in Fair Value of Equity and Convertible Securities | 39.2 | 9.8 | 25.5 | 64.4 | (76.4) | 11 | 0.4 | 0.7 | 138.9 | (64.3) | 0 |
Net Impairment Losses Recognized in Earnings | $ (1.7) | $ (1.8) | $ (6.7) | $ (3.6) | $ (2.2) | $ (1.8) | $ 0 | $ (0.5) | (13.8) | (4.5) | (14.3) |
Operating Segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total Revenues | 4,845.9 | 3,726.9 | 2,675 | ||||||||
Operating Segments | Specialty Property & Casualty Insurance | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Earned Premiums | 3,078.4 | 2,027.4 | 1,005.7 | ||||||||
Net Investment Income | 107.5 | 63.4 | 39.2 | ||||||||
Other Income | 7 | 2.4 | 1.1 | ||||||||
Total Revenues | 3,192.9 | 2,093.2 | 1,046 | ||||||||
Operating Segments | Preferred Property & Casualty Insurance | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Earned Premiums | 750.3 | 730.7 | 730.3 | ||||||||
Net Investment Income | 44.1 | 61.8 | 58.9 | ||||||||
Total Revenues | 794.4 | 792.5 | 789.2 | ||||||||
Operating Segments | Life & Health Insurance | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Earned Premiums | 643.7 | 626.3 | 614 | ||||||||
Net Investment Income | 206.4 | 210.9 | 223.2 | ||||||||
Other Income | 8.5 | 4 | 2.6 | ||||||||
Total Revenues | 858.6 | 841.2 | 839.8 | ||||||||
Segment Reconciling Items | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Income (Loss) from Change in Fair Value of Equity and Convertible Securities | 138.9 | (64.3) | 0 | ||||||||
Net Realized Gains on the Sales of Investments | 41.9 | 26.4 | 56.5 | ||||||||
Net Impairment Losses Recognized in Earnings | (13.8) | (4.5) | (14.3) | ||||||||
Other | $ 26.3 | $ 40.6 | $ 6.2 |
Business Segments - Segment Ope
Business Segments - Segment Operating Profit (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | |||||||||||
Segment Operating Profit (Loss) | $ 518.8 | $ 286.2 | $ 118.9 | ||||||||
Income (Loss) from Change in Fair Value of Equity and Convertible Securities | $ 39.2 | $ 9.8 | $ 25.5 | $ 64.4 | $ (76.4) | $ 11 | $ 0.4 | $ 0.7 | 138.9 | (64.3) | 0 |
Net Impairment Losses Recognized in Earnings | (1.7) | (1.8) | (6.7) | (3.6) | (2.2) | (1.8) | 0 | (0.5) | (13.8) | (4.5) | (14.3) |
Loss from Early Extinguishment of Debt | 0 | (5.8) | 0 | 0 | (5.8) | 0 | 0 | ||||
Income from Continuing Operations before Income Taxes | $ 156.9 | $ 161.5 | $ 148.5 | $ 194.7 | $ 6.1 | $ 80.5 | $ 45.5 | $ 67 | 661.6 | 199.1 | 161.1 |
Operating Segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Segment Operating Profit (Loss) | 530.1 | 290.1 | 142.6 | ||||||||
Operating Segments | Specialty Property & Casualty Insurance | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Segment Operating Profit (Loss) | 355.9 | 145.6 | 80.5 | ||||||||
Operating Segments | Preferred Property & Casualty Insurance | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Segment Operating Profit (Loss) | 52.3 | 28.6 | (78.1) | ||||||||
Operating Segments | Life & Health Insurance | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Segment Operating Profit (Loss) | 121.9 | 115.9 | 140.2 | ||||||||
Corporate, Non-Segment | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Segment Operating Profit (Loss) | (11.3) | (3.9) | (23.7) | ||||||||
Partial Satisfaction of Judgment | 20.1 | 35.7 | 0 | ||||||||
Other | (31.4) | (39.6) | (23.7) | ||||||||
Segment Reconciling Items | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Income (Loss) from Change in Fair Value of Equity and Convertible Securities | 138.9 | (64.3) | 0 | ||||||||
Net Realized Gains on the Sales of Investments | 41.9 | 26.4 | 56.5 | ||||||||
Net Impairment Losses Recognized in Earnings | (13.8) | (4.5) | (14.3) | ||||||||
Acquisition Related Transaction, Integration and Other Costs | $ (18.4) | $ (44.7) | $ 0 |
Business Segments - Segment Net
Business Segments - Segment Net Income (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | |||||||
Segment Net Operating Income (Loss) | $ 418.3 | $ 258.4 | $ 92.5 | ||||
Loss from Early Extinguishment of Debt | (4.6) | 0 | 0 | ||||
Income from Continuing Operations | $ 5 | $ 92.3 | $ 37.5 | $ 53.6 | 531.1 | 188.4 | 119.9 |
Operating Segments | |||||||
Segment Reporting Information [Line Items] | |||||||
Segment Net Operating Income (Loss) | 423.7 | 233 | 102.8 | ||||
Operating Segments | Specialty Property & Casualty Insurance | |||||||
Segment Reporting Information [Line Items] | |||||||
Segment Net Operating Income (Loss) | 283.1 | 115.8 | 56.3 | ||||
Operating Segments | Preferred Property & Casualty Insurance | |||||||
Segment Reporting Information [Line Items] | |||||||
Segment Net Operating Income (Loss) | 41.9 | 25.7 | (45.4) | ||||
Operating Segments | Life & Health Insurance | |||||||
Segment Reporting Information [Line Items] | |||||||
Segment Net Operating Income (Loss) | 98.7 | 91.5 | 91.9 | ||||
Corporate, Non-Segment | |||||||
Segment Reporting Information [Line Items] | |||||||
Segment Net Operating Income (Loss) | (5.4) | 25.4 | (10.3) | ||||
Effects of Tax Law Changes | $ 7.4 | 0 | 26.4 | ||||
Partial Satisfaction of Judgment | 15.9 | 28.2 | 0 | ||||
Other | (21.3) | (29.2) | (17.7) | ||||
Segment Reconciling Items | |||||||
Segment Reporting Information [Line Items] | |||||||
Change in Fair Value of Equity and Convertible Securities | 109.7 | (50.8) | 0 | ||||
Net Realized Gains on Sales of Investments | 33.1 | 20.9 | 36.7 | ||||
Net Impairment Losses Recognized in Earnings | (10.9) | (3.6) | (9.3) | ||||
Acquisition Related Transaction, Integration and Other Costs | $ (14.5) | $ (36.5) | $ 0 |
Business Segments - Amortizatio
Business Segments - Amortization of Deferred Policy Acquisition Costs By Segment (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | |||
Amortization of deferred policy acquisition costs | $ 408.3 | $ 377.1 | $ 318.3 |
Specialty Property & Casualty Insurance | |||
Segment Reporting Information [Line Items] | |||
Amortization of deferred policy acquisition costs | 224.9 | 202 | 150.2 |
Preferred Property & Casualty Insurance | |||
Segment Reporting Information [Line Items] | |||
Amortization of deferred policy acquisition costs | 120.1 | 117.2 | 114.6 |
Life & Health Insurance | |||
Segment Reporting Information [Line Items] | |||
Amortization of deferred policy acquisition costs | $ 63.3 | $ 57.9 | $ 53.5 |
Catastrophe Reinsurance - Narra
Catastrophe Reinsurance - Narrative (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Liability for Catastrophe Claims [Line Items] | |||
Catastrophic events classification by amount | $ 25,000,000 | ||
Ceded earned premiums | 27,400,000 | $ 31,600,000 | $ 18,200,000 |
Incurred losses and LAE related to prior year (favorable) adverse development | (71,100,000) | (7,400,000) | 18,900,000 |
Catastrophe | |||
Liability for Catastrophe Claims [Line Items] | |||
Catastrophe Losses and LAE | 60,100,000 | 87,600,000 | 180,400,000 |
Incurred losses and LAE related to prior year (favorable) adverse development | (17,100,000) | (8,400,000) | (4,500,000) |
Catastrophe | Life & Health Insurance | |||
Liability for Catastrophe Claims [Line Items] | |||
Catastrophe Losses and LAE | 3,900,000 | 4,100,000 | 6,400,000 |
Incurred losses and LAE related to prior year (favorable) adverse development | 800,000 | 100,000 | 500,000 |
Catastrophe | Specialty Property & Casualty Insurance | |||
Liability for Catastrophe Claims [Line Items] | |||
Catastrophe Losses and LAE | 11,600,000 | 4,400,000 | 5,200,000 |
Incurred losses and LAE related to prior year (favorable) adverse development | 500,000 | (300,000) | (300,000) |
Catastrophe | Preferred Property & Casualty Insurance | |||
Liability for Catastrophe Claims [Line Items] | |||
Catastrophe Losses and LAE | 44,600,000 | 79,100,000 | 168,800,000 |
Incurred losses and LAE related to prior year (favorable) adverse development | (18,400,000) | (8,200,000) | (4,700,000) |
Catastrophe Reinsurance | |||
Liability for Catastrophe Claims [Line Items] | |||
Ceded earned premiums | 20,500,000 | 20,500,000 | 11,000,000 |
Catastrophe Reinsurance | Life & Health Insurance | |||
Liability for Catastrophe Claims [Line Items] | |||
Ceded earned premiums | 100,000 | 100,000 | 100,000 |
Catastrophe Reinsurance | Specialty Property & Casualty Insurance | |||
Liability for Catastrophe Claims [Line Items] | |||
Ceded earned premiums | 200,000 | 2,600,000 | 100,000 |
Catastrophe Reinsurance | Preferred Property & Casualty Insurance | |||
Liability for Catastrophe Claims [Line Items] | |||
Ceded earned premiums | 20,200,000 | 17,800,000 | 10,800,000 |
Catastrophe Reinsurance | Catastrophe | Property & Casualty Insurance Subsidiaries | |||
Liability for Catastrophe Claims [Line Items] | |||
Catastrophe Losses and LAE | 15,500,000 | 31,800,000 | 11,900,000 |
Reinstatement Premium | Catastrophe Reinsurance | Property & Casualty Insurance Subsidiaries | |||
Liability for Catastrophe Claims [Line Items] | |||
Ceded earned premiums | 0 | 400,000 | 800,000 |
Reinstatement premiums | 900,000 | ||
Reinsurance Recoverable FHCF | Catastrophe | Property & Casualty Insurance Subsidiaries | |||
Liability for Catastrophe Claims [Line Items] | |||
Catastrophe Losses and LAE | 0 | 0 | 0 |
Reinsurance Recoverable FHCF | Catastrophe | Life & Health Insurance | |||
Liability for Catastrophe Claims [Line Items] | |||
Catastrophe Losses and LAE | $ 1,600,000 | $ 1,600,000 | $ 200,000 |
Catastrophe Reinsurance - Cover
Catastrophe Reinsurance - Coverage for Catastrophe Reinsurance (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Property & Casualty Insurance Subsidiaries | Retained | |||
Liability for Catastrophe Claims [Line Items] | |||
Reinsurance retention policy, reinsured risk, percentage | 0.00% | 0.00% | 0.00% |
Property & Casualty Insurance Subsidiaries | 1st Layer of Coverage | |||
Liability for Catastrophe Claims [Line Items] | |||
Reinsurance retention policy, excess retention, percentage | 95.00% | 95.00% | 95.00% |
Property & Casualty Insurance Subsidiaries | 2nd Layer of Coverage | |||
Liability for Catastrophe Claims [Line Items] | |||
Reinsurance retention policy, excess retention, percentage | 95.00% | ||
Property & Casualty Insurance Subsidiaries | 2nd Layer of Coverage (Tranche A) | |||
Liability for Catastrophe Claims [Line Items] | |||
Reinsurance retention policy, excess retention, percentage | 63.30% | 31.70% | |
Property & Casualty Insurance Subsidiaries | 2nd Layer of Coverage (Tranche B) | |||
Liability for Catastrophe Claims [Line Items] | |||
Reinsurance retention policy, excess retention, percentage | 31.70% | 63.30% | |
Property & Casualty Insurance Subsidiaries | Minimum | |||
Liability for Catastrophe Claims [Line Items] | |||
Reinsurance retention policy, amount retained | $ 0 | $ 0 | |
Reinsurance retention policy, excess retention, amount reinsured | 60,000,000 | 60,000,000 | |
Property & Casualty Insurance Subsidiaries | Minimum | Retained | |||
Liability for Catastrophe Claims [Line Items] | |||
Reinsurance retention policy, amount retained | 0 | 0 | $ 0 |
Property & Casualty Insurance Subsidiaries | Minimum | 1st Layer of Coverage | |||
Liability for Catastrophe Claims [Line Items] | |||
Reinsurance retention policy, excess retention, amount reinsured | 50,000,000 | 50,000,000 | 50,000,000 |
Property & Casualty Insurance Subsidiaries | Minimum | 2nd Layer of Coverage | |||
Liability for Catastrophe Claims [Line Items] | |||
Reinsurance retention policy, excess retention, amount reinsured | 150,000,000 | ||
Property & Casualty Insurance Subsidiaries | Minimum | 2nd Layer of Coverage (Tranche A) | |||
Liability for Catastrophe Claims [Line Items] | |||
Reinsurance retention policy, excess retention, amount reinsured | 150,000,000 | 150,000,000 | |
Property & Casualty Insurance Subsidiaries | Minimum | 2nd Layer of Coverage (Tranche B) | |||
Liability for Catastrophe Claims [Line Items] | |||
Reinsurance retention policy, excess retention, amount reinsured | 150,000,000 | 150,000,000 | |
Property & Casualty Insurance Subsidiaries | Maximum | |||
Liability for Catastrophe Claims [Line Items] | |||
Reinsurance retention policy, amount retained | 60,000,000 | 60,000,000 | |
Reinsurance retention policy, excess retention, amount reinsured | 110,000,000 | 110,000,000 | |
Property & Casualty Insurance Subsidiaries | Maximum | Retained | |||
Liability for Catastrophe Claims [Line Items] | |||
Reinsurance retention policy, amount retained | 50,000,000 | 50,000,000 | 50,000,000 |
Property & Casualty Insurance Subsidiaries | Maximum | 1st Layer of Coverage | |||
Liability for Catastrophe Claims [Line Items] | |||
Reinsurance retention policy, excess retention, amount reinsured | 150,000,000 | 150,000,000 | 150,000,000 |
Property & Casualty Insurance Subsidiaries | Maximum | 2nd Layer of Coverage | |||
Liability for Catastrophe Claims [Line Items] | |||
Reinsurance retention policy, excess retention, amount reinsured | $ 250,000,000 | ||
Property & Casualty Insurance Subsidiaries | Maximum | 2nd Layer of Coverage (Tranche A) | |||
Liability for Catastrophe Claims [Line Items] | |||
Reinsurance retention policy, excess retention, amount reinsured | 250,000,000 | 250,000,000 | |
Property & Casualty Insurance Subsidiaries | Maximum | 2nd Layer of Coverage (Tranche B) | |||
Liability for Catastrophe Claims [Line Items] | |||
Reinsurance retention policy, excess retention, amount reinsured | $ 350,000,000 | $ 350,000,000 | |
Kemper Preferred, Kemper Specialty and Kemper Direct Segments | 3rd Layer of Coverage | |||
Liability for Catastrophe Claims [Line Items] | |||
Reinsurance retention policy, excess retention, percentage | 95.00% | ||
Kemper Preferred, Kemper Specialty and Kemper Direct Segments | Minimum | 3rd Layer of Coverage | |||
Liability for Catastrophe Claims [Line Items] | |||
Reinsurance retention policy, excess retention, amount reinsured | $ 250,000,000 | ||
Kemper Preferred, Kemper Specialty and Kemper Direct Segments | Maximum | 3rd Layer of Coverage | |||
Liability for Catastrophe Claims [Line Items] | |||
Reinsurance retention policy, excess retention, amount reinsured | $ 275,000,000 |
Catastrophe Reinsurance - Catas
Catastrophe Reinsurance - Catastrophe Reinsurance Premiums (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Liability for Catastrophe Claims [Line Items] | |||
Ceded earned premiums | $ 27.4 | $ 31.6 | $ 18.2 |
Catastrophe Reinsurance | |||
Liability for Catastrophe Claims [Line Items] | |||
Ceded earned premiums | 20.5 | 20.5 | 11 |
Specialty Property & Casualty Insurance | Catastrophe Reinsurance | |||
Liability for Catastrophe Claims [Line Items] | |||
Ceded earned premiums | 0.2 | 2.6 | 0.1 |
Preferred Property & Casualty Insurance | Catastrophe Reinsurance | |||
Liability for Catastrophe Claims [Line Items] | |||
Ceded earned premiums | 20.2 | 17.8 | 10.8 |
Life & Health Insurance | Catastrophe Reinsurance | |||
Liability for Catastrophe Claims [Line Items] | |||
Ceded earned premiums | $ 0.1 | $ 0.1 | $ 0.1 |
Catastrophe Reinsurance - Cat_2
Catastrophe Reinsurance - Catastrophe Losses and LAE (Details) - Catastrophe - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Liability for Catastrophe Claims [Line Items] | |||
Catastrophe Losses and LAE | $ 60.1 | $ 87.6 | $ 180.4 |
Specialty Property & Casualty Insurance | |||
Liability for Catastrophe Claims [Line Items] | |||
Catastrophe Losses and LAE | 11.6 | 4.4 | 5.2 |
Preferred Property & Casualty Insurance | |||
Liability for Catastrophe Claims [Line Items] | |||
Catastrophe Losses and LAE | 44.6 | 79.1 | 168.8 |
Life & Health Insurance | |||
Liability for Catastrophe Claims [Line Items] | |||
Catastrophe Losses and LAE | $ 3.9 | $ 4.1 | $ 6.4 |
Other Reinsurance (Details)
Other Reinsurance (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019USD ($)employeesdirector | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Effects of Reinsurance [Line Items] | |||
Ceded earned premiums | $ 27.4 | $ 31.6 | $ 18.2 |
Assumed earned premiums | 92.3 | 85.2 | 72.9 |
Catastrophe Reinsurance | |||
Effects of Reinsurance [Line Items] | |||
Ceded earned premiums | 20.5 | 20.5 | 11 |
Non-Catastrophe Reinsurance | |||
Effects of Reinsurance [Line Items] | |||
Assumed earned premiums | $ 92.3 | 85.2 | 72.9 |
Capitol County Mutual Fire Insurance Company | |||
Effects of Reinsurance [Line Items] | |||
Number of employee board members | employees | 5 | ||
Number of board of director members | director | 5 | ||
Old Reliable Casualty Company | |||
Effects of Reinsurance [Line Items] | |||
Number of employee board members | employees | 9 | ||
Number of board of director members | director | 9 | ||
Capitol County Mutual Fire Insurance Company | |||
Effects of Reinsurance [Line Items] | |||
Assumed earned premiums | $ 19.4 | 20 | 20.7 |
Capitol County Mutual Fire Insurance Company | Trinity | |||
Effects of Reinsurance [Line Items] | |||
Percentage of written business assumed | 100.00% | ||
Old Reliable Casualty Company | |||
Effects of Reinsurance [Line Items] | |||
Assumed earned premiums | $ 5.2 | $ 5.6 | $ 5.9 |
Old Reliable Casualty Company | Trinity | |||
Effects of Reinsurance [Line Items] | |||
Percentage of written business assumed | 100.00% |
Fair Value Measurements - Valua
Fair Value Measurements - Valuation of Assets Measured at Fair Value (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed Maturities at Fair Value (Amortized Cost: 2019 - $6,372.7; 2018 - $6,284.5) | $ 6,922,100,000 | $ 6,424,200,000 |
Equity Securities at Fair Value (Cost: 2019 - $818.8; 2018 - $720.8) | 907,300,000 | 684,400,000 |
Fair Value, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Convertible securities at fair value | 37,300,000 | 31,500,000 |
Total | 7,866,700,000 | 7,140,100,000 |
Fair Value, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Convertible securities at fair value | 0 | 0 |
Total | 745,000,000 | 594,200,000 |
Fair Value, Recurring | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Convertible securities at fair value | 37,300,000 | 31,500,000 |
Total | 5,829,400,000 | 5,456,500,000 |
Fair Value, Recurring | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Convertible securities at fair value | 0 | 0 |
Total | 1,044,200,000 | 897,400,000 |
Investments in Fixed Maturities | Fair Value, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed Maturities at Fair Value (Amortized Cost: 2019 - $6,372.7; 2018 - $6,284.5) | 6,922,100,000 | 6,424,200,000 |
Investments in Fixed Maturities | Fair Value, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed Maturities at Fair Value (Amortized Cost: 2019 - $6,372.7; 2018 - $6,284.5) | 144,300,000 | 156,500,000 |
Investments in Fixed Maturities | Fair Value, Recurring | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed Maturities at Fair Value (Amortized Cost: 2019 - $6,372.7; 2018 - $6,284.5) | 5,733,600,000 | 5,370,300,000 |
Investments in Fixed Maturities | Fair Value, Recurring | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed Maturities at Fair Value (Amortized Cost: 2019 - $6,372.7; 2018 - $6,284.5) | 1,044,200,000 | 897,400,000 |
United States Government and Government Agencies and Authorities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed Maturities at Fair Value (Amortized Cost: 2019 - $6,372.7; 2018 - $6,284.5) | 815,900,000 | 865,700,000 |
United States Government and Government Agencies and Authorities | Fair Value, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed Maturities at Fair Value (Amortized Cost: 2019 - $6,372.7; 2018 - $6,284.5) | 815,900,000 | 865,700,000 |
United States Government and Government Agencies and Authorities | Fair Value, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed Maturities at Fair Value (Amortized Cost: 2019 - $6,372.7; 2018 - $6,284.5) | 144,300,000 | 156,500,000 |
United States Government and Government Agencies and Authorities | Fair Value, Recurring | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed Maturities at Fair Value (Amortized Cost: 2019 - $6,372.7; 2018 - $6,284.5) | 671,600,000 | 709,200,000 |
United States Government and Government Agencies and Authorities | Fair Value, Recurring | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed Maturities at Fair Value (Amortized Cost: 2019 - $6,372.7; 2018 - $6,284.5) | 0 | 0 |
States and Political Subdivisions | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed Maturities at Fair Value (Amortized Cost: 2019 - $6,372.7; 2018 - $6,284.5) | 1,515,800,000 | 1,619,100,000 |
States and Political Subdivisions | Fair Value, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed Maturities at Fair Value (Amortized Cost: 2019 - $6,372.7; 2018 - $6,284.5) | 1,515,800,000 | 1,619,100,000 |
States and Political Subdivisions | Fair Value, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed Maturities at Fair Value (Amortized Cost: 2019 - $6,372.7; 2018 - $6,284.5) | 0 | 0 |
States and Political Subdivisions | Fair Value, Recurring | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed Maturities at Fair Value (Amortized Cost: 2019 - $6,372.7; 2018 - $6,284.5) | 1,515,800,000 | 1,619,100,000 |
States and Political Subdivisions | Fair Value, Recurring | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed Maturities at Fair Value (Amortized Cost: 2019 - $6,372.7; 2018 - $6,284.5) | 0 | 0 |
Foreign Governments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed Maturities at Fair Value (Amortized Cost: 2019 - $6,372.7; 2018 - $6,284.5) | 16,800,000 | 5,900,000 |
Foreign Governments | Fair Value, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed Maturities at Fair Value (Amortized Cost: 2019 - $6,372.7; 2018 - $6,284.5) | 16,800,000 | 5,900,000 |
Foreign Governments | Fair Value, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed Maturities at Fair Value (Amortized Cost: 2019 - $6,372.7; 2018 - $6,284.5) | 0 | 0 |
Foreign Governments | Fair Value, Recurring | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed Maturities at Fair Value (Amortized Cost: 2019 - $6,372.7; 2018 - $6,284.5) | 16,800,000 | 5,900,000 |
Foreign Governments | Fair Value, Recurring | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed Maturities at Fair Value (Amortized Cost: 2019 - $6,372.7; 2018 - $6,284.5) | 0 | 0 |
Corporate Bonds and Notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed Maturities at Fair Value (Amortized Cost: 2019 - $6,372.7; 2018 - $6,284.5) | 3,859,700,000 | 3,393,800,000 |
Corporate Bonds and Notes | Fair Value, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed Maturities at Fair Value (Amortized Cost: 2019 - $6,372.7; 2018 - $6,284.5) | 3,859,700,000 | 3,393,800,000 |
Corporate Bonds and Notes | Fair Value, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed Maturities at Fair Value (Amortized Cost: 2019 - $6,372.7; 2018 - $6,284.5) | 0 | 0 |
Corporate Bonds and Notes | Fair Value, Recurring | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed Maturities at Fair Value (Amortized Cost: 2019 - $6,372.7; 2018 - $6,284.5) | 3,450,600,000 | 3,011,200,000 |
Corporate Bonds and Notes | Fair Value, Recurring | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed Maturities at Fair Value (Amortized Cost: 2019 - $6,372.7; 2018 - $6,284.5) | 409,100,000 | 382,600,000 |
Redeemable Preferred Stocks | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed Maturities at Fair Value (Amortized Cost: 2019 - $6,372.7; 2018 - $6,284.5) | 6,700,000 | |
Redeemable Preferred Stocks | Fair Value, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed Maturities at Fair Value (Amortized Cost: 2019 - $6,372.7; 2018 - $6,284.5) | 6,700,000 | |
Redeemable Preferred Stocks | Fair Value, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed Maturities at Fair Value (Amortized Cost: 2019 - $6,372.7; 2018 - $6,284.5) | 0 | |
Redeemable Preferred Stocks | Fair Value, Recurring | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed Maturities at Fair Value (Amortized Cost: 2019 - $6,372.7; 2018 - $6,284.5) | 0 | |
Redeemable Preferred Stocks | Fair Value, Recurring | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed Maturities at Fair Value (Amortized Cost: 2019 - $6,372.7; 2018 - $6,284.5) | 6,700,000 | |
Collateralized Loan Obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed Maturities at Fair Value (Amortized Cost: 2019 - $6,372.7; 2018 - $6,284.5) | 618,200,000 | 524,000,000 |
Collateralized Loan Obligations | Fair Value, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed Maturities at Fair Value (Amortized Cost: 2019 - $6,372.7; 2018 - $6,284.5) | 618,200,000 | 524,000,000 |
Collateralized Loan Obligations | Fair Value, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed Maturities at Fair Value (Amortized Cost: 2019 - $6,372.7; 2018 - $6,284.5) | 0 | 0 |
Collateralized Loan Obligations | Fair Value, Recurring | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed Maturities at Fair Value (Amortized Cost: 2019 - $6,372.7; 2018 - $6,284.5) | 0 | 19,100,000 |
Collateralized Loan Obligations | Fair Value, Recurring | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed Maturities at Fair Value (Amortized Cost: 2019 - $6,372.7; 2018 - $6,284.5) | 618,200,000 | 504,900,000 |
Other Mortgage- and Asset-backed | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed Maturities at Fair Value (Amortized Cost: 2019 - $6,372.7; 2018 - $6,284.5) | 89,000,000 | 15,700,000 |
Other Mortgage- and Asset-backed | Fair Value, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed Maturities at Fair Value (Amortized Cost: 2019 - $6,372.7; 2018 - $6,284.5) | 89,000,000 | 15,700,000 |
Other Mortgage- and Asset-backed | Fair Value, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed Maturities at Fair Value (Amortized Cost: 2019 - $6,372.7; 2018 - $6,284.5) | 0 | 0 |
Other Mortgage- and Asset-backed | Fair Value, Recurring | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed Maturities at Fair Value (Amortized Cost: 2019 - $6,372.7; 2018 - $6,284.5) | 78,800,000 | 5,800,000 |
Other Mortgage- and Asset-backed | Fair Value, Recurring | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed Maturities at Fair Value (Amortized Cost: 2019 - $6,372.7; 2018 - $6,284.5) | 10,200,000 | 9,900,000 |
Dividends on Equity Securities Excluding Alternative Investments | Fair Value, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity Securities at Fair Value (Cost: 2019 - $818.8; 2018 - $720.8) | 907,300,000 | 684,400,000 |
Dividends on Equity Securities Excluding Alternative Investments | Fair Value, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity Securities at Fair Value (Cost: 2019 - $818.8; 2018 - $720.8) | 600,700,000 | 437,700,000 |
Dividends on Equity Securities Excluding Alternative Investments | Fair Value, Recurring | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity Securities at Fair Value (Cost: 2019 - $818.8; 2018 - $720.8) | 58,500,000 | 54,700,000 |
Dividends on Equity Securities Excluding Alternative Investments | Fair Value, Recurring | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity Securities at Fair Value (Cost: 2019 - $818.8; 2018 - $720.8) | 0 | 0 |
Preferred Stocks | Finance, Insurance and Real Estate | Fair Value, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity Securities at Fair Value (Cost: 2019 - $818.8; 2018 - $720.8) | 44,500,000 | 41,200,000 |
Preferred Stocks | Finance, Insurance and Real Estate | Fair Value, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity Securities at Fair Value (Cost: 2019 - $818.8; 2018 - $720.8) | 0 | 0 |
Preferred Stocks | Finance, Insurance and Real Estate | Fair Value, Recurring | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity Securities at Fair Value (Cost: 2019 - $818.8; 2018 - $720.8) | 44,500,000 | 41,200,000 |
Preferred Stocks | Finance, Insurance and Real Estate | Fair Value, Recurring | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity Securities at Fair Value (Cost: 2019 - $818.8; 2018 - $720.8) | 0 | 0 |
Preferred Stocks | Other Industries | Fair Value, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity Securities at Fair Value (Cost: 2019 - $818.8; 2018 - $720.8) | 14,700,000 | 13,000,000 |
Preferred Stocks | Other Industries | Fair Value, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity Securities at Fair Value (Cost: 2019 - $818.8; 2018 - $720.8) | 900,000 | 0 |
Preferred Stocks | Other Industries | Fair Value, Recurring | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity Securities at Fair Value (Cost: 2019 - $818.8; 2018 - $720.8) | 13,800,000 | 13,000,000 |
Preferred Stocks | Other Industries | Fair Value, Recurring | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity Securities at Fair Value (Cost: 2019 - $818.8; 2018 - $720.8) | 0 | 0 |
Common Stock | Finance, Insurance and Real Estate | Fair Value, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity Securities at Fair Value (Cost: 2019 - $818.8; 2018 - $720.8) | 12,800,000 | 10,200,000 |
Common Stock | Finance, Insurance and Real Estate | Fair Value, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity Securities at Fair Value (Cost: 2019 - $818.8; 2018 - $720.8) | 12,800,000 | 10,200,000 |
Common Stock | Finance, Insurance and Real Estate | Fair Value, Recurring | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity Securities at Fair Value (Cost: 2019 - $818.8; 2018 - $720.8) | 0 | 0 |
Common Stock | Finance, Insurance and Real Estate | Fair Value, Recurring | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity Securities at Fair Value (Cost: 2019 - $818.8; 2018 - $720.8) | 0 | 0 |
Common Stock | Other Industries | Fair Value, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity Securities at Fair Value (Cost: 2019 - $818.8; 2018 - $720.8) | 400,000 | 700,000 |
Common Stock | Other Industries | Fair Value, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity Securities at Fair Value (Cost: 2019 - $818.8; 2018 - $720.8) | 200,000 | 200,000 |
Common Stock | Other Industries | Fair Value, Recurring | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity Securities at Fair Value (Cost: 2019 - $818.8; 2018 - $720.8) | 200,000 | 500,000 |
Common Stock | Other Industries | Fair Value, Recurring | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity Securities at Fair Value (Cost: 2019 - $818.8; 2018 - $720.8) | 0 | 0 |
Bond Exchange Traded Funds | Fair Value, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity Securities at Fair Value (Cost: 2019 - $818.8; 2018 - $720.8) | 586,800,000 | 427,300,000 |
Bond Exchange Traded Funds | Fair Value, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity Securities at Fair Value (Cost: 2019 - $818.8; 2018 - $720.8) | 586,800,000 | 427,300,000 |
Bond Exchange Traded Funds | Fair Value, Recurring | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity Securities at Fair Value (Cost: 2019 - $818.8; 2018 - $720.8) | 0 | 0 |
Bond Exchange Traded Funds | Fair Value, Recurring | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity Securities at Fair Value (Cost: 2019 - $818.8; 2018 - $720.8) | 0 | 0 |
Limited Liability Companies and Limited Partnerships | Fair Value, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity Securities at Fair Value (Cost: 2019 - $818.8; 2018 - $720.8) | 248,100,000 | 192,000,000 |
Limited Liability Companies and Limited Partnerships | Fair Value, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity Securities at Fair Value (Cost: 2019 - $818.8; 2018 - $720.8) | 0 | 0 |
Limited Liability Companies and Limited Partnerships | Fair Value, Recurring | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity Securities at Fair Value (Cost: 2019 - $818.8; 2018 - $720.8) | 0 | 0 |
Limited Liability Companies and Limited Partnerships | Fair Value, Recurring | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity Securities at Fair Value (Cost: 2019 - $818.8; 2018 - $720.8) | 0 | 0 |
Measured at Net Asset Value | Fair Value, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Convertible securities at fair value | 0 | 0 |
Total | 248,100,000 | 192,000,000 |
Measured at Net Asset Value | Investments in Fixed Maturities | Fair Value, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed Maturities at Fair Value (Amortized Cost: 2019 - $6,372.7; 2018 - $6,284.5) | 0 | 0 |
Measured at Net Asset Value | United States Government and Government Agencies and Authorities | Fair Value, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed Maturities at Fair Value (Amortized Cost: 2019 - $6,372.7; 2018 - $6,284.5) | 0 | 0 |
Measured at Net Asset Value | States and Political Subdivisions | Fair Value, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed Maturities at Fair Value (Amortized Cost: 2019 - $6,372.7; 2018 - $6,284.5) | 0 | 0 |
Measured at Net Asset Value | Foreign Governments | Fair Value, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed Maturities at Fair Value (Amortized Cost: 2019 - $6,372.7; 2018 - $6,284.5) | 0 | 0 |
Measured at Net Asset Value | Corporate Bonds and Notes | Fair Value, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed Maturities at Fair Value (Amortized Cost: 2019 - $6,372.7; 2018 - $6,284.5) | 0 | 0 |
Measured at Net Asset Value | Redeemable Preferred Stocks | Fair Value, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed Maturities at Fair Value (Amortized Cost: 2019 - $6,372.7; 2018 - $6,284.5) | 0 | |
Measured at Net Asset Value | Collateralized Loan Obligations | Fair Value, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed Maturities at Fair Value (Amortized Cost: 2019 - $6,372.7; 2018 - $6,284.5) | 0 | 0 |
Measured at Net Asset Value | Other Mortgage- and Asset-backed | Fair Value, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed Maturities at Fair Value (Amortized Cost: 2019 - $6,372.7; 2018 - $6,284.5) | 0 | 0 |
Measured at Net Asset Value | Dividends on Equity Securities Excluding Alternative Investments | Fair Value, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity Securities at Fair Value (Cost: 2019 - $818.8; 2018 - $720.8) | 248,100,000 | 192,000,000 |
Measured at Net Asset Value | Preferred Stocks | Finance, Insurance and Real Estate | Fair Value, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity Securities at Fair Value (Cost: 2019 - $818.8; 2018 - $720.8) | 0 | 0 |
Measured at Net Asset Value | Preferred Stocks | Other Industries | Fair Value, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity Securities at Fair Value (Cost: 2019 - $818.8; 2018 - $720.8) | 0 | 0 |
Measured at Net Asset Value | Common Stock | Finance, Insurance and Real Estate | Fair Value, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity Securities at Fair Value (Cost: 2019 - $818.8; 2018 - $720.8) | 0 | 0 |
Measured at Net Asset Value | Common Stock | Other Industries | Fair Value, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity Securities at Fair Value (Cost: 2019 - $818.8; 2018 - $720.8) | 0 | 0 |
Measured at Net Asset Value | Bond Exchange Traded Funds | Fair Value, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity Securities at Fair Value (Cost: 2019 - $818.8; 2018 - $720.8) | 0 | 0 |
Measured at Net Asset Value | Limited Liability Companies and Limited Partnerships | Fair Value, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity Securities at Fair Value (Cost: 2019 - $818.8; 2018 - $720.8) | $ 248,100,000 | $ 192,000,000 |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Transfers into Level 3 | $ 19.1 | $ 36.3 |
Transfers out of Level 3 | 0 | 71.3 |
Level 3 to Level 2 transfers | 9.5 | |
Limited Liability Companies and Limited Partnerships | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Unfunded commitments | $ 248.1 | |
Equity Securities at Modified Cost | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Transfers out of Level 3 | $ 61.8 |
Fair Value Measurements - Quant
Fair Value Measurements - Quantitative Information about Significant Unobservable Inputs (Details) - Valuation, Market Approach - Significant Unobservable Inputs (Level 3) $ in Millions | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) |
Collateralized Loan Obligations | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Total Fair Value | $ 613.5 | $ 504.9 |
Other | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Total Fair Value | 21.5 | 15.9 |
Total Level 3 Fixed Maturity Investments in Corporate Securities | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Total Fair Value | 1,044.2 | 897.4 |
Investment-grade | Investment-grade | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Total Fair Value | 204.2 | 146.7 |
Non-investment-grade | Senior Debt | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Total Fair Value | 123.7 | 142.3 |
Non-investment-grade | Junior Debt | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Total Fair Value | $ 81.3 | $ 87.6 |
Measurement Input, Discount Rate | Investment-grade | Investment-grade | Minimum | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Alternative investment, measurement input | 0.024 | 0.037 |
Measurement Input, Discount Rate | Investment-grade | Investment-grade | Maximum | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Alternative investment, measurement input | 0.085 | 0.109 |
Measurement Input, Discount Rate | Investment-grade | Investment-grade | Weighted-average Yield | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Alternative investment, measurement input | 0.041 | 0.052 |
Senior Debt | Measurement Input, Discount Rate | Non-investment-grade | Minimum | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Debt instrument, measurement input | 0.024 | 0.048 |
Senior Debt | Measurement Input, Discount Rate | Non-investment-grade | Maximum | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Debt instrument, measurement input | 0.215 | 0.300 |
Senior Debt | Measurement Input, Discount Rate | Non-investment-grade | Weighted-average Yield | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Debt instrument, measurement input | 0.091 | 0.115 |
Junior Debt | Measurement Input, Discount Rate | Non-investment-grade | Minimum | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Debt instrument, measurement input | 0.096 | 0.110 |
Junior Debt | Measurement Input, Discount Rate | Non-investment-grade | Maximum | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Debt instrument, measurement input | 0.180 | 0.285 |
Junior Debt | Measurement Input, Discount Rate | Non-investment-grade | Weighted-average Yield | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Debt instrument, measurement input | 0.131 | 0.142 |
Collateralized Loan Obligations | Measurement Input, Discount Rate | Minimum | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Debt instrument, measurement input | 0.032 | 0.041 |
Collateralized Loan Obligations | Measurement Input, Discount Rate | Maximum | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Debt instrument, measurement input | 0.125 | 0.134 |
Collateralized Loan Obligations | Measurement Input, Discount Rate | Weighted-average Yield | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Debt instrument, measurement input | 0.051 | 0.061 |
Fair Value Measurements - Level
Fair Value Measurements - Level 3 Inputs Reconciliation (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance at Beginning of Year | $ 897.4 | $ 556.6 |
Total Gains (Losses): | ||
Included in Consolidated Statement of Income | (6.2) | 7 |
Included in Other Comprehensive Income (Loss) | 16.8 | (18.4) |
Purchases | 433 | 663.3 |
Settlements | (101.6) | (166.6) |
Sales | (214.3) | (109.5) |
Transfers into Level 3 | 19.1 | 36.3 |
Transfers out of Level 3 | 0 | (71.3) |
Balance at End of Year | 1,044.2 | 897.4 |
Corporate Bonds and Notes | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance at Beginning of Year | 382.6 | 401.5 |
Total Gains (Losses): | ||
Included in Consolidated Statement of Income | (6.8) | 4.4 |
Included in Other Comprehensive Income (Loss) | 10.6 | (2.2) |
Purchases | 307 | 201.8 |
Settlements | (72.9) | (108.1) |
Sales | (211.4) | (109.5) |
Transfers into Level 3 | 0 | 2.4 |
Transfers out of Level 3 | 0 | (7.7) |
Balance at End of Year | 409.1 | 382.6 |
States and Political Subdivisions | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance at Beginning of Year | 0 | 0 |
Total Gains (Losses): | ||
Included in Consolidated Statement of Income | 0 | |
Included in Other Comprehensive Income (Loss) | 0 | |
Purchases | 1.8 | |
Settlements | 0 | |
Sales | 0 | |
Transfers into Level 3 | 0 | |
Transfers out of Level 3 | (1.8) | |
Balance at End of Year | 0 | |
Redeemable Preferred Stocks | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance at Beginning of Year | 0 | 0.1 |
Total Gains (Losses): | ||
Included in Consolidated Statement of Income | 0 | (0.1) |
Included in Other Comprehensive Income (Loss) | (0.1) | 0 |
Purchases | 6.8 | 0 |
Settlements | 0 | 0 |
Sales | 0 | 0 |
Transfers into Level 3 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 |
Balance at End of Year | 6.7 | 0 |
Collateralized Loan Obligations | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance at Beginning of Year | 504.9 | 93.2 |
Total Gains (Losses): | ||
Included in Consolidated Statement of Income | 0.6 | 2.7 |
Included in Other Comprehensive Income (Loss) | 5.3 | (16.3) |
Purchases | 119.2 | 449.7 |
Settlements | (28) | (58.3) |
Sales | (2.9) | 0 |
Transfers into Level 3 | 19.1 | 33.9 |
Transfers out of Level 3 | 0 | 0 |
Balance at End of Year | 618.2 | 504.9 |
Other Mortgage- and Asset-backed | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance at Beginning of Year | 9.9 | 0 |
Total Gains (Losses): | ||
Included in Consolidated Statement of Income | 0 | 0 |
Included in Other Comprehensive Income (Loss) | 1 | 0.1 |
Purchases | 0 | 10 |
Settlements | (0.7) | (0.2) |
Sales | 0 | 0 |
Transfers into Level 3 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 |
Balance at End of Year | 10.2 | 9.9 |
Preferred and Common Stocks | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance at Beginning of Year | 0 | 27.4 |
Total Gains (Losses): | ||
Included in Consolidated Statement of Income | 0 | |
Included in Other Comprehensive Income (Loss) | 0 | |
Purchases | 0 | |
Settlements | 0 | |
Sales | 0 | |
Transfers into Level 3 | 0 | |
Transfers out of Level 3 | (27.4) | |
Balance at End of Year | 0 | |
Other Equity Interests | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance at Beginning of Year | $ 0 | 34.4 |
Total Gains (Losses): | ||
Included in Consolidated Statement of Income | 0 | |
Included in Other Comprehensive Income (Loss) | 0 | |
Purchases | 0 | |
Settlements | 0 | |
Sales | 0 | |
Transfers into Level 3 | 0 | |
Transfers out of Level 3 | (34.4) | |
Balance at End of Year | $ 0 |
Fair Value Measurements - Balan
Fair Value Measurements - Balance Sheet Grouping (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Carrying Value | ||
Loans to Policyholders | $ 305.6 | $ 300.6 |
Short-term Investments | 470.9 | 286.1 |
Mortgage Loans | 27.5 | 0 |
Debt | 778.4 | 909 |
Policyholder Contract Liabilities | 309.8 | 76.8 |
Fair Value | ||
Short-term Investments | 470.9 | 286.1 |
Debt | 820.2 | 911.2 |
FHLB of Chicago | ||
Fair Value | ||
Policyholder Contract Liabilities | 243.4 | 10 |
Loans to Policyholders | ||
Fair Value | ||
Loans | 612.4 | 542.6 |
Mortgage Loans | ||
Fair Value | ||
Loans | 27.5 | 0 |
United Insurance | FHLB Funding Agreements | FHLB of Chicago | ||
Carrying Value | ||
Policyholder Contract Liabilities | $ 243.4 | $ 10 |
Contingencies (Details)
Contingencies (Details) - USD ($) $ in Millions | Sep. 26, 2018 | Apr. 30, 2019 | Sep. 30, 2018 | Nov. 30, 2017 |
Commitments and Contingencies Disclosure [Abstract] | ||||
Gain contingency, unrecorded amount | $ 84.3 | |||
Interest rate | 9.00% | |||
Litigation settlement cost and expenses | $ 7.2 | |||
Litigation settlement, amount awarded from other party | $ 141.7 | |||
Proceeds from legal settlements | $ 20.1 | $ 35.7 |
Related Parties (Details)
Related Parties (Details) - Pension Plans, Defined Benefit - Investment Management Services for Defined Benefit Plan - Fayez Sarofim & Co. - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Related Party Transaction [Line Items] | |||
Assets managed by related party | $ 149.3 | $ 124.5 | $ 171.8 |
Investment expenses from agreement with related party | $ 0.9 | $ 0.9 | $ 0.9 |
Quarterly Financial Informati_3
Quarterly Financial Information (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Revenues: | |||||||||||
Earned Premiums | $ 1,145.8 | $ 1,135.2 | $ 1,116.6 | $ 1,074.8 | $ 1,063.6 | $ 1,052.9 | $ 658.1 | $ 609.8 | $ 4,472.4 | $ 3,384.4 | $ 2,350 |
Net Investment Income | 93.9 | 91.7 | 96 | 82.7 | 91.3 | 92 | 78.4 | 79.2 | 364.3 | 340.9 | 327.2 |
Other Income | 3.7 | 7.2 | 22.7 | 1.9 | 2 | 37.8 | 1.2 | 1.2 | 35.5 | 42.2 | 4 |
Income (Loss) from Change in Fair Value of Equity and Convertible Securities | 39.2 | 9.8 | 25.5 | 64.4 | (76.4) | 11 | 0.4 | 0.7 | 138.9 | (64.3) | 0 |
Net Realized Gains on Sales of Investments | 2.8 | 1.7 | 21.3 | 16.1 | 16.4 | 3.6 | 3.8 | 2.6 | 41.9 | 26.4 | 56.5 |
Other-than-temporary Impairment Losses: | |||||||||||
Total Other-than-temporary Impairment Losses | (1.7) | (1.8) | (6.7) | (3.5) | (2.2) | (1.8) | 0 | (0.5) | (13.7) | (4.5) | (14.4) |
Portion of Gains (Losses) Recognized in Other Comprehensive Income | 0 | 0 | 0 | (0.1) | 0 | 0 | 0 | 0 | (0.1) | 0 | 0.1 |
Net Impairment Losses Recognized in Earnings | (1.7) | (1.8) | (6.7) | (3.6) | (2.2) | (1.8) | 0 | (0.5) | (13.8) | (4.5) | (14.3) |
Total Revenues | 1,283.7 | 1,243.8 | 1,275.4 | 1,236.3 | 1,094.7 | 1,195.5 | 741.9 | 693 | 5,039.2 | 3,725.1 | 2,723.4 |
Expenses: | |||||||||||
Policyholders’ Benefits and Incurred Losses and Loss Adjustment Expenses | 814.9 | 782.6 | 825.4 | 765.4 | 772.8 | 757.3 | 499.5 | 436.9 | 3,188.3 | 2,466.5 | 1,837.4 |
Insurance Expenses | 265.4 | 256 | 263.5 | 234.8 | 273.2 | 296 | 171.2 | 160.1 | 1,019.7 | 900.5 | 644.3 |
Loss from Early Extinguishment of Debt | 0 | 5.8 | 0 | 0 | 5.8 | 0 | 0 | ||||
Interest and Other Expenses | 46.5 | 37.9 | 38 | 41.4 | 42.6 | 61.7 | 25.7 | 29 | 163.8 | 159 | 80.6 |
Total Expenses | 1,126.8 | 1,082.3 | 1,126.9 | 1,041.6 | 1,088.6 | 1,115 | 696.4 | 626 | 4,377.6 | 3,526 | 2,562.3 |
Income from Continuing Operations before Income Taxes | 156.9 | 161.5 | 148.5 | 194.7 | 6.1 | 80.5 | 45.5 | 67 | 661.6 | 199.1 | 161.1 |
Income Tax Expense | (32.2) | (32.5) | (26.4) | (39.4) | (1.1) | 11.8 | (8) | (13.4) | (130.5) | (10.7) | (41.2) |
Income from Continuing Operations | 5 | 92.3 | 37.5 | 53.6 | 531.1 | 188.4 | 119.9 | ||||
Income from Discontinued Operations | 1.5 | (0.1) | 0.1 | 0.2 | 0 | 1.7 | 1 | ||||
Net Income | $ 124.7 | $ 129 | $ 122.1 | $ 155.3 | $ 6.5 | $ 92.2 | $ 37.6 | $ 53.8 | $ 531.1 | $ 190.1 | $ 120.9 |
Income from Continuing Operations Per Unrestricted Share: | |||||||||||
Basic (in dollars per share) | $ 0.08 | $ 1.42 | $ 0.73 | $ 1.03 | $ 8.04 | $ 3.22 | $ 2.32 | ||||
Diluted (in dollars per share) | 0.08 | 1.40 | 0.73 | 1.02 | 7.96 | 3.19 | 2.31 | ||||
Net Income Per Unrestricted Share: | |||||||||||
Basic (in dollars per share) | $ 1.87 | $ 1.93 | $ 1.87 | $ 2.38 | 0.10 | 1.42 | 0.73 | 1.03 | 8.04 | 3.25 | 2.34 |
Diluted (in dollars per share) | 1.85 | 1.91 | 1.84 | 2.35 | 0.10 | 1.40 | 0.73 | 1.02 | 7.96 | 3.22 | 2.33 |
Dividends paid to shareholders per share (in dollars per share) | $ 0.28 | $ 0.25 | $ 0.25 | $ 0.25 | $ 0.24 | $ 0.24 | $ 0.24 | $ 0.24 | $ 1.03 | $ 0.96 | $ 0.96 |
Schedule 1 - Investments Othe_2
Schedule 1 - Investments Other Than Investments in Related Parties (Details) $ in Millions | Dec. 31, 2019USD ($) |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Amortized Cost | $ 8,495 |
Amount Carried in Balance Sheet | 9,044.4 |
Fixed Maturities: | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Amortized Cost | 6,372.7 |
Fair Value | 6,922.1 |
Amount Carried in Balance Sheet | 6,922.1 |
United States Government and Government Agencies and Authorities | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Amortized Cost | 784.7 |
Fair Value | 815.9 |
Amount Carried in Balance Sheet | 815.9 |
States and Political Subdivisions | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Amortized Cost | 1,386.4 |
Fair Value | 1,515.8 |
Amount Carried in Balance Sheet | 1,515.8 |
Foreign Governments | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Amortized Cost | 17.2 |
Fair Value | 16.8 |
Amount Carried in Balance Sheet | 16.8 |
Other Bonds and Notes | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Amortized Cost | 3,465 |
Fair Value | 3,859.7 |
Amount Carried in Balance Sheet | 3,859.7 |
Redeemable Preferred Stocks | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Amortized Cost | 6.8 |
Fair Value | 6.7 |
Amount Carried in Balance Sheet | 6.7 |
Collateralized Loan Obligations | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Amortized Cost | 624.6 |
Fair Value | 618.2 |
Amount Carried in Balance Sheet | 618.2 |
Other Mortgage- and Asset-backed | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Amortized Cost | 88 |
Fair Value | 89 |
Amount Carried in Balance Sheet | 89 |
Equity Securities at Fair Value: | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Amortized Cost | 907.3 |
Fair Value | 907.3 |
Amount Carried in Balance Sheet | 907.3 |
Preferred Stocks | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Amortized Cost | 59.2 |
Fair Value | 59.2 |
Amount Carried in Balance Sheet | 59.2 |
Common Stock | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Amortized Cost | 13.2 |
Fair Value | 13.2 |
Amount Carried in Balance Sheet | 13.2 |
Other Equity Interests | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Amortized Cost | 834.9 |
Fair Value | 834.9 |
Amount Carried in Balance Sheet | 834.9 |
Equity Securities at Modified Cost | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Amortized Cost | 41.9 |
Amount Carried in Balance Sheet | 41.9 |
Equity Method Limited Liability Investments at Cost Plus Cumulative Undistributed Earnings | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Amortized Cost | 220.4 |
Amount Carried in Balance Sheet | 220.4 |
Convertible Securities at Fair Value | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Amortized Cost | 37.3 |
Fair Value | 37.3 |
Amount Carried in Balance Sheet | 37.3 |
Loans, Real Estate and Other Investments | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Amortized Cost | 444.5 |
Amount Carried in Balance Sheet | 444.5 |
Short-term Investments | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Amortized Cost | 470.9 |
Amount Carried in Balance Sheet | $ 470.9 |
Schedule 2 - Parent Company F_3
Schedule 2 - Parent Company Financial Statements - Balance Sheets (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
ASSETS | ||||
Investments in Subsidiaries | $ 220.4 | $ 187 | ||
Fixed Maturities at Fair Value (Amortized Cost: 2018 – $12.6) | 6,922.1 | 6,424.2 | ||
Equity Securities at Fair Value | 907.3 | 684.4 | ||
Equity Securities at Modified Cost | 41.9 | 41.5 | ||
Short-term Investments at Cost which Approximates Fair Value | 470.9 | 286.1 | ||
Cash | 136.8 | 75.1 | $ 45.7 | $ 115.7 |
Other Receivables | 219.7 | 245.4 | ||
Other Assets | 774.7 | 526.5 | ||
Operating Lease Right-of-Use Assets | 75.6 | |||
Total Assets | 12,989.1 | 11,544.9 | ||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||
Long-term Debt, Current and Non-current, at Amortized Cost (Fair Value: 2019 - $820.2; 2018 - $911.2) | 778.4 | 909 | ||
Deferred Income Tax Liabilities | 178.2 | 26.2 | ||
Present Value of Minimum Lease Payments | 93.2 | |||
Accrued Expenses and Other Liabilities | 733.1 | 687.3 | ||
Total Liabilities | 9,016.8 | 8,494.8 | ||
Shareholders’ Equity: | ||||
Common Stock | 6.7 | 6.5 | ||
Additional Paid-in Capital | 1,819.2 | 1,666.3 | ||
Retained Earnings | 1,810.3 | 1,355.5 | ||
Accumulated Other Comprehensive Income | 336.1 | 21.8 | ||
Total Shareholders’ Equity | 3,972.3 | 3,050.1 | ||
Total Liabilities and Shareholders’ Equity | 12,989.1 | 11,544.9 | ||
Parent Company | ||||
ASSETS | ||||
Investments in Subsidiaries | 4,383.7 | 3,736 | ||
Fixed Maturities at Fair Value (Amortized Cost: 2018 – $12.6) | 0 | 12.6 | ||
Equity Securities at Fair Value | 55.7 | 20.4 | ||
Short-term Investments at Cost which Approximates Fair Value | 89.3 | 64.6 | ||
Cash | 61.8 | 2.9 | $ 8.4 | $ 15.7 |
Other Receivables | 21.9 | 5.7 | ||
Other Assets | 21.9 | 14.4 | ||
Operating Lease Right-of-Use Assets | 18.6 | 0 | ||
Total Assets | 4,652.9 | 3,856.6 | ||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||
Current Income Tax Liability | 55.3 | 40.5 | ||
Deferred Income Tax Liabilities | 32.2 | 20.2 | ||
Liabilities for Benefit Plans | 44.3 | 98.2 | ||
Present Value of Minimum Lease Payments | 31.3 | 0 | ||
Accrued Expenses and Other Liabilities | 19 | 20.1 | ||
Total Liabilities | 680.6 | 806.5 | ||
Shareholders’ Equity: | ||||
Common Stock | 6.7 | 6.5 | ||
Additional Paid-in Capital | 1,819.2 | 1,666.3 | ||
Retained Earnings | 1,810.3 | 1,355.5 | ||
Accumulated Other Comprehensive Income | 336.1 | 21.8 | ||
Total Shareholders’ Equity | 3,972.3 | 3,050.1 | ||
Total Liabilities and Shareholders’ Equity | 4,652.9 | 3,856.6 | ||
Parent Company | Term Loan due June 29, 2020 (Fair Value: 2018 – $35.0) | ||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||
Long-term Debt, Current and Non-current, at Amortized Cost (Fair Value: 2019 - $820.2; 2018 - $911.2) | 0 | 34.9 | ||
Parent Company | Term Loan due July 5, 2023 (Fair Value: 2019 – $50.0) | ||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||
Long-term Debt, Current and Non-current, at Amortized Cost (Fair Value: 2019 - $820.2; 2018 - $911.2) | 49.9 | 0 | ||
Parent Company | Senior Notes Payable, 4.35% due 2025 (Fair Value: 2019 – $478.6; 2018 – $444.2) | ||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||
Long-term Debt, Current and Non-current, at Amortized Cost (Fair Value: 2019 - $820.2; 2018 - $911.2) | 448.6 | 448.4 | ||
Parent Company | Subordinated Debentures due 2054 (Fair Value: 2018 – $151.1) | ||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||
Long-term Debt, Current and Non-current, at Amortized Cost (Fair Value: 2019 - $820.2; 2018 - $911.2) | $ 0 | $ 144.2 |
Schedule 2 - Parent Company F_4
Schedule 2 - Parent Company Financial Statements - Balance Sheets (Additional Information) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Jun. 07, 2019 | Dec. 31, 2018 |
Amortized cost of fixed maturities | $ 6,372.7 | $ 6,284.5 | |
Debt | $ 820.2 | 911.2 | |
Senior Notes | Senior Notes Payable, 4.35% due 2025 (Fair Value: 2019 – $478.6; 2018 – $444.2) | |||
Stated interest rate, percentage | 4.35% | ||
Subordinated Debt | Subordinated Debentures due 2054 (Fair Value: 2018 – $151.1) | |||
Stated interest rate, percentage | 7.375% | 7.375% | |
Parent Company | |||
Amortized cost of fixed maturities | $ 0 | 12.6 | |
Parent Company | Secured Debt | Term Loan due June 29, 2020 (Fair Value: 2018 – $35.0) | |||
Debt | 0 | 35 | |
Parent Company | Secured Debt | Term Loan due July 5, 2023 (Fair Value: 2019 – $50.0) | |||
Debt | 50 | 0 | |
Parent Company | Senior Notes | Senior Notes Payable, 4.35% due 2025 (Fair Value: 2019 – $478.6; 2018 – $444.2) | |||
Debt | $ 478.6 | $ 444.2 | |
Stated interest rate, percentage | 4.35% | 4.35% | |
Parent Company | Subordinated Debt | Subordinated Debentures due 2054 (Fair Value: 2018 – $151.1) | |||
Debt | $ 0 | $ 151.1 | |
Stated interest rate, percentage | 7.375% | 7.375% |
Schedule 2 - Parent Company F_5
Schedule 2 - Parent Company Financial Statements - Statements of Income (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Condensed Income Statements, Captions [Line Items] | |||||||||||
Net Investment Income | $ 93.9 | $ 91.7 | $ 96 | $ 82.7 | $ 91.3 | $ 92 | $ 78.4 | $ 79.2 | $ 364.3 | $ 340.9 | $ 327.2 |
Income (Loss) from Change in Fair Value of Equity and Convertible Securities | 39.2 | 9.8 | 25.5 | 64.4 | (76.4) | 11 | 0.4 | 0.7 | 138.9 | (64.3) | 0 |
Net Realized Gains on Sales of Investments | 2.8 | 1.7 | 21.3 | 16.1 | 16.4 | 3.6 | 3.8 | 2.6 | 41.9 | 26.4 | 56.5 |
Net Impairment Losses Recognized in Earnings | (1.7) | (1.8) | (6.7) | (3.6) | (2.2) | (1.8) | 0 | (0.5) | (13.8) | (4.5) | (14.3) |
Total Revenues | 1,283.7 | 1,243.8 | 1,275.4 | 1,236.3 | 1,094.7 | 1,195.5 | 741.9 | 693 | 5,039.2 | 3,725.1 | 2,723.4 |
Interest Expense | 42.5 | 43.3 | 34.9 | ||||||||
Loss from Early Extinguishment of Debt | 0 | 5.8 | 0 | 0 | 5.8 | 0 | 0 | ||||
Total Expenses | 1,126.8 | 1,082.3 | 1,126.9 | 1,041.6 | 1,088.6 | 1,115 | 696.4 | 626 | 4,377.6 | 3,526 | 2,562.3 |
Income Tax Benefit | (32.2) | (32.5) | (26.4) | (39.4) | (1.1) | 11.8 | (8) | (13.4) | (130.5) | (10.7) | (41.2) |
Equity in Net Income of Subsidiaries | 1 | 11 | 24.8 | ||||||||
Net Income | $ 124.7 | $ 129 | $ 122.1 | $ 155.3 | $ 6.5 | $ 92.2 | $ 37.6 | $ 53.8 | 531.1 | 190.1 | 120.9 |
Parent Company | |||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||
Net Investment Income | 2.1 | 2.5 | 3 | ||||||||
Income (Loss) from Change in Fair Value of Equity and Convertible Securities | 1.6 | 1.4 | 0 | ||||||||
Net Realized Gains on Sales of Investments | 0.3 | (0.7) | 0.6 | ||||||||
Total Revenues | 4 | 3.2 | 3.6 | ||||||||
Interest Expense | 28.5 | 37.6 | 36.6 | ||||||||
Loss from Early Extinguishment of Debt | 5.8 | 0 | 0 | ||||||||
Other Operating (Benefits) Expenses | 4 | 26.3 | (5.1) | ||||||||
Total Expenses | 38.3 | 63.9 | 31.5 | ||||||||
Loss before Income Taxes and Equity in Net Income of Subsidiaries | (34.3) | (60.7) | (27.9) | ||||||||
Income Tax Benefit | 9.4 | 12.2 | 21.2 | ||||||||
Loss before Equity in Net Income of Subsidiaries | (24.9) | (48.5) | (6.7) | ||||||||
Equity in Net Income of Subsidiaries | 556 | 238.6 | 127.6 | ||||||||
Net Income | $ 531.1 | $ 190.1 | $ 120.9 |
Schedule 2 - Parent Company F_6
Schedule 2 - Parent Company Financial Statements - Statements of Comprehensive Income (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Condensed Statement of Income Captions [Line Items] | |||||||||||
Net Income | $ 124.7 | $ 129 | $ 122.1 | $ 155.3 | $ 6.5 | $ 92.2 | $ 37.6 | $ 53.8 | $ 531.1 | $ 190.1 | $ 120.9 |
Unrealized Holding Gains (Losses) Arising During the Year: | |||||||||||
Unrealized Holding Gains (Losses) Arising During the Period Before Reclassification Adjustment | 433.4 | (214.2) | 119.1 | ||||||||
Reclassification Adjustment for Amounts Included in Net Income: | |||||||||||
Reclassification Adjustment for Amounts Included in Net Income | (28.1) | (21.9) | (35.3) | ||||||||
Unrealized Holding Gains (Losses) | 405.3 | (236.1) | 83.8 | ||||||||
Unrecognized Postretirement Benefit Costs Arising During the Year | (4.8) | (8) | 3.9 | ||||||||
Reclassification Adjustments for Amounts Included in Net Income: | |||||||||||
Total Reclassification Adjustments for Amounts Included in Net Income | (3) | 1.1 | (0.6) | ||||||||
Net Unrecognized Postretirement Benefit Costs | (7.8) | (6.9) | 3.3 | ||||||||
Foreign Currency Translation Adjustments | 0 | 0.3 | 1.7 | ||||||||
Gains (Losses) on Cash Flow Hedge | 0.4 | 1.2 | (6.7) | ||||||||
Other Comprehensive Income (Loss) Before Income Taxes | 397.9 | (241.5) | 82.1 | ||||||||
Unrealized Holding Gains and Losses Arising During the Year: | |||||||||||
Unrealized Holding Gains (Losses) Arising During the Year Before Reclassification Adjustment | (91) | 45 | (38.2) | ||||||||
Reclassification Adjustment for Amounts Included in Net Income: | |||||||||||
Reclassification Adjustment for Amounts Included in Net Income | (5.8) | (4.6) | (12.3) | ||||||||
Unrealized Holding Gains and Losses | (85.2) | 49.6 | (25.9) | ||||||||
Unrecognized Postretirement Benefit Costs Arising During the Year | 1 | 1.7 | (0.8) | ||||||||
Reclassification Adjustments for Amounts Included in Net Income: | |||||||||||
Total Reclassification Adjustments for Amounts Included in Net Income | 0.7 | (0.2) | 0.2 | ||||||||
Net Unrecognized Postretirement Benefit Costs | 1.7 | 1.5 | (0.6) | ||||||||
Foreign Currency Translation Adjustments on Investments | 0 | (0.1) | (0.6) | ||||||||
Gains (Losses) on Cash Flow Hedge | (0.1) | (0.3) | 2.4 | ||||||||
Other Comprehensive Income Tax Benefit (Expense) | (83.6) | 50.7 | (24.7) | ||||||||
Other Comprehensive Income (Loss) | 314.3 | (190.8) | 57.4 | ||||||||
Total Comprehensive Income (Loss) | 845.4 | (0.7) | 178.3 | ||||||||
Subsidiaries | |||||||||||
Unrealized Holding Gains (Losses) Arising During the Year: | |||||||||||
Unrealized Holding Gains (Losses) Arising During the Period Before Reclassification Adjustment | 433.2 | (214.1) | 119.5 | ||||||||
Reclassification Adjustment for Amounts Included in Net Income: | |||||||||||
Reclassification Adjustment for Amounts Included in Net Income | (27.9) | (21.9) | (35.3) | ||||||||
Unrecognized Postretirement Benefit Costs Arising During the Year | (0.6) | 0 | 0 | ||||||||
Reclassification Adjustments for Amounts Included in Net Income: | |||||||||||
Foreign Currency Translation Adjustments | 0 | 0.3 | 1.7 | ||||||||
Unrealized Holding Gains and Losses Arising During the Year: | |||||||||||
Unrealized Holding Gains (Losses) Arising During the Year Before Reclassification Adjustment | (91) | 45 | (38.3) | ||||||||
Reclassification Adjustment for Amounts Included in Net Income: | |||||||||||
Reclassification Adjustment for Amounts Included in Net Income | 5.8 | 4.6 | 12.3 | ||||||||
Reclassification Adjustments for Amounts Included in Net Income: | |||||||||||
Foreign Currency Translation Adjustments on Investments | 0 | (0.1) | (0.6) | ||||||||
Parent Company | |||||||||||
Condensed Statement of Income Captions [Line Items] | |||||||||||
Net Income | 531.1 | 190.1 | 120.9 | ||||||||
Unrealized Holding Gains (Losses) Arising During the Year: | |||||||||||
Unrealized Holding Gains (Losses) Arising During the Period Before Reclassification Adjustment | 0.2 | (0.1) | (0.4) | ||||||||
Reclassification Adjustment for Amounts Included in Net Income: | |||||||||||
Reclassification Adjustment for Amounts Included in Net Income | (0.2) | 0 | 0 | ||||||||
Unrealized Holding Gains (Losses) | 405.3 | (236.1) | 83.8 | ||||||||
Unrecognized Postretirement Benefit Costs Arising During the Year | (4.2) | (8) | 3.9 | ||||||||
Reclassification Adjustments for Amounts Included in Net Income: | |||||||||||
Amortization of Unrecognized Postretirement Benefits (Costs) | (3) | 1.1 | (0.6) | ||||||||
Total Reclassification Adjustments for Amounts Included in Net Income | (3) | 1.1 | (0.6) | ||||||||
Net Unrecognized Postretirement Benefit Costs | (7.8) | (6.9) | 3.3 | ||||||||
Gains (Losses) on Cash Flow Hedge | 0.4 | 1.2 | (6.7) | ||||||||
Other Comprehensive Income (Loss) Before Income Taxes | 397.9 | (241.5) | 82.1 | ||||||||
Unrealized Holding Gains and Losses Arising During the Year: | |||||||||||
Unrealized Holding Gains (Losses) Arising During the Year Before Reclassification Adjustment | 0 | 0 | 0.1 | ||||||||
Reclassification Adjustment for Amounts Included in Net Income: | |||||||||||
Unrealized Holding Gains and Losses | (85.2) | 49.6 | (25.9) | ||||||||
Unrecognized Postretirement Benefit Costs Arising During the Year | 1 | 1.7 | (0.8) | ||||||||
Reclassification Adjustments for Amounts Included in Net Income: | |||||||||||
Amortization of Unrecognized Postretirement Benefit Costs | 0.7 | (0.2) | 0.2 | ||||||||
Total Reclassification Adjustments for Amounts Included in Net Income | 0.7 | (0.2) | 0.2 | ||||||||
Net Unrecognized Postretirement Benefit Costs | 1.7 | 1.5 | (0.6) | ||||||||
Gains (Losses) on Cash Flow Hedge | (0.1) | (0.3) | 2.4 | ||||||||
Other Comprehensive Income Tax Benefit (Expense) | (83.6) | 50.7 | (24.7) | ||||||||
Other Comprehensive Income (Loss) | 314.3 | (190.8) | 57.4 | ||||||||
Total Comprehensive Income (Loss) | $ 845.4 | $ (0.7) | $ 178.3 |
Schedule 2 - Parent Company F_7
Schedule 2 - Parent Company Financial Statements - Statements of Cash Flows (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Operating Activities: | |||||||||||
Net Income | $ 124.7 | $ 129 | $ 122.1 | $ 155.3 | $ 6.5 | $ 92.2 | $ 37.6 | $ 53.8 | $ 531.1 | $ 190.1 | $ 120.9 |
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: | |||||||||||
Equity in Earnings of Equity Method Limited Liability Investments | (1) | (11) | (24.8) | ||||||||
Increase in Value of Equity Securities at Fair Value | (39.2) | (9.8) | (25.5) | (64.4) | 76.4 | (11) | (0.4) | (0.7) | (138.9) | 64.3 | 0 |
Net Realized Gains on Sales of Investments | (2.8) | (1.7) | (21.3) | (16.1) | (16.4) | $ (3.6) | $ (3.8) | (2.6) | (41.9) | (26.4) | (56.5) |
Loss from Early Extinguishment of Debt | 0 | $ 5.8 | $ 0 | 0 | 5.8 | 0 | 0 | ||||
Other, Net | 30.7 | 13.7 | (2.1) | ||||||||
Net Cash Provided by Operating Activities | 534.3 | 539.2 | 240.6 | ||||||||
Investing Activities: | |||||||||||
Sales, Paydowns and Maturities of Fixed Maturities | 1,229.1 | 2,643.3 | 528.2 | ||||||||
Purchases of Fixed Maturities | (1,284.9) | (2,413.2) | (710.1) | ||||||||
Purchases of Equity and Convertible Securities | (307) | (478.5) | (342.7) | ||||||||
Sales of Equity and Convertible Securities | 217.3 | 351.9 | 342 | ||||||||
Sales of Fair Value Option Investments | 0 | 0 | 42.2 | ||||||||
Purchases of Fair Value Option Investments | 0 | 0 | (7) | ||||||||
Acquisition of Business | 0 | (560.6) | 0 | ||||||||
Change in Short-term Investments | (176) | 52.7 | 39.4 | ||||||||
Net Cash Used by Investing Activities | (633.4) | (497.6) | (105.4) | ||||||||
Financing Activities: | |||||||||||
Net Proceeds from Issuance of Long-term Debt | 49.9 | 249.4 | 200.2 | ||||||||
Repayment of Long-term Debt | (185) | (215) | (360) | ||||||||
Proceeds from Issuance of Common Stock, Net of Transaction Costs | 127.5 | 0 | 0 | ||||||||
Dividends and Dividend Equivalents Paid | (67.8) | (56.4) | (49.5) | ||||||||
Proceeds from Shares Issued under Employee Stock Purchase Plan | 1.6 | 0 | 0 | ||||||||
Cash Exercise of Stock Options | 2.4 | 0.9 | 4 | ||||||||
Net Cash Provided (Used) by Financing Activities | 160.8 | (12.2) | (205.2) | ||||||||
Increase (Decrease) in Cash | 61.7 | 29.4 | (70) | ||||||||
Cash, Beginning of Year | 75.1 | 45.7 | 75.1 | 45.7 | 115.7 | ||||||
Cash, End of Year | 136.8 | 75.1 | 136.8 | 75.1 | 45.7 | ||||||
Parent Company | |||||||||||
Operating Activities: | |||||||||||
Net Income | 531.1 | 190.1 | 120.9 | ||||||||
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: | |||||||||||
Equity in Earnings of Equity Method Limited Liability Investments | (556) | (238.6) | (127.6) | ||||||||
Cash Dividends from Subsidiaries | 239 | 130.4 | 108.1 | ||||||||
Cash Contribution to Defined Benefit Plan | (55.3) | (5) | 0 | ||||||||
Increase in Value of Equity Securities at Fair Value | (1.6) | (1.4) | 0 | ||||||||
Net Realized Gains on Sales of Investments | (0.3) | 0.7 | (0.6) | ||||||||
Loss from Early Extinguishment of Debt | 5.8 | 0 | 0 | ||||||||
Other, Net | 9.8 | 29.6 | 0.7 | ||||||||
Net Cash Provided by Operating Activities | 172.5 | 105.8 | 101.5 | ||||||||
Investing Activities: | |||||||||||
Capital Contributed to Subsidiaries | (83) | (20) | 0 | ||||||||
Capital Distribution from Subsidiary | 85 | 176 | 0 | ||||||||
Sales, Paydowns and Maturities of Fixed Maturities | 12.7 | (0.2) | 45.7 | ||||||||
Purchases of Equity and Convertible Securities | (48.9) | (2.3) | 0 | ||||||||
Sales of Equity and Convertible Securities | 15.3 | 67.5 | 0 | ||||||||
Sales of Fair Value Option Investments | 0 | 0 | 42.2 | ||||||||
Purchases of Fair Value Option Investments | 0 | 0 | (7) | ||||||||
Acquisition of Business | 0 | (564.6) | 0 | ||||||||
Change in Short-term Investments | (23.3) | 253.4 | 15.6 | ||||||||
Net Cash Used by Investing Activities | (42.2) | (90.2) | 96.5 | ||||||||
Financing Activities: | |||||||||||
Net Proceeds from Issuance of Long-term Debt | 49.9 | 249.4 | 200.2 | ||||||||
Repayment of Long-term Debt | (185) | (215) | (360) | ||||||||
Proceeds from Issuance of Common Stock, Net of Transaction Costs | 127.5 | 0 | 0 | ||||||||
Dividends and Dividend Equivalents Paid | (67.8) | (56.4) | (49.5) | ||||||||
Proceeds from Shares Issued under Employee Stock Purchase Plan | 1.6 | 0 | 0 | ||||||||
Cash Exercise of Stock Options | 2.4 | 0.9 | 4 | ||||||||
Net Cash Provided (Used) by Financing Activities | (71.4) | (21.1) | (205.3) | ||||||||
Increase (Decrease) in Cash | 58.9 | (5.5) | (7.3) | ||||||||
Cash, Beginning of Year | $ 2.9 | $ 8.4 | 2.9 | 8.4 | 15.7 | ||||||
Cash, End of Year | $ 61.8 | $ 2.9 | $ 61.8 | $ 2.9 | $ 8.4 |
Schedule 2 - Parent Company F_8
Schedule 2 - Parent Company Financial Statements - Narrative (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Jul. 02, 2018 | |
5.0% Senior Notes due September 19, 2022 | Senior Notes | |||
Condensed Financial Statements, Captions [Line Items] | |||
Stated interest rate, percentage | 5.00% | ||
5.0% Senior Notes due September 19, 2022 | Senior Notes | Infinity Property and Casualty Corporation | |||
Condensed Financial Statements, Captions [Line Items] | |||
Stated interest rate, percentage | 5.00% | ||
Subsidiary of Common Parent | Non-cash Dividends | |||
Condensed Financial Statements, Captions [Line Items] | |||
Related party transaction, amounts of transaction | $ 0 | $ 574,000,000 | |
Subsidiary of Common Parent | Non-cash Capital Contributions | |||
Condensed Financial Statements, Captions [Line Items] | |||
Related party transaction, amounts of transaction | $ 0 | $ 350,000,000 |
Schedule 2 - Parent Company F_9
Schedule 2 - Parent Company Financial Statements - Right of Use Assets and Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Condensed Financial Statements, Captions [Line Items] | ||
Operating Lease Right-of-Use Assets | $ 75.6 | |
Present Value of Minimum Lease Payments | 93.2 | |
Parent Company | ||
Condensed Financial Statements, Captions [Line Items] | ||
Operating Lease Right-of-Use Assets | 18.6 | $ 0 |
Present Value of Minimum Lease Payments | $ 31.3 | $ 0 |
Schedule 2 - Parent Company _10
Schedule 2 - Parent Company Financial Statements - Supplemental Cash Flow Information (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Condensed Financial Statements, Captions [Line Items] | |
Operating Cash Flows from Operating Leases (Fixed Payments) | $ 20 |
Operating Cash Flows from Operating Leases (Liability Reduction) | 17.6 |
Financing Cash Flows from Finance Leases | 0.7 |
Parent Company | |
Condensed Financial Statements, Captions [Line Items] | |
Operating Cash Flows from Operating Leases (Fixed Payments) | 1.2 |
Operating Cash Flows from Operating Leases (Liability Reduction) | 1 |
Financing Cash Flows from Finance Leases | $ 7.9 |
Schedule 2 - Parent Company _11
Schedule 2 - Parent Company Financial Statements - Lease Weighted Average (Details) | Dec. 31, 2019 |
Condensed Financial Statements, Captions [Line Items] | |
Weighted-average Remaining Lease Term - Operating Leases | 7 years |
Weighted-average Discount Rate - Operating Leases | 3.90% |
Parent Company | |
Condensed Financial Statements, Captions [Line Items] | |
Weighted-average Remaining Lease Term - Operating Leases | 13 years |
Weighted-average Discount Rate - Operating Leases | 4.00% |
Schedule 2 - Parent Company _12
Schedule 2 - Parent Company Financial Statements - Future Minimum Lease Payments (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Condensed Financial Statements, Captions [Line Items] | ||
Due Next 12 Months | $ 20.5 | $ 20.5 |
Due Year Two | 19.3 | 18.4 |
Due Year Three | 17 | 16.9 |
Due Year Four | 14.7 | 15 |
Due Year Five | 8.3 | 12.5 |
Due after Year Five | 28.1 | 27.1 |
Total Future Payments | 107.9 | 110.4 |
Less Discount | 14.7 | |
Present Value of Minimum Lease Payments | 93.2 | |
Parent Company | ||
Condensed Financial Statements, Captions [Line Items] | ||
Due Next 12 Months | 2.1 | |
Due Year Two | 3.5 | |
Due Year Three | 3.7 | |
Due Year Four | 3.5 | |
Due Year Five | 2.5 | |
Due after Year Five | 25.6 | |
Total Future Payments | 40.9 | |
Less Discount | 9.6 | |
Present Value of Minimum Lease Payments | $ 31.3 | $ 0 |
Schedule 3 - Supplementary In_2
Schedule 3 - Supplementary Insurance Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Line Items] | |||
Earned Premiums | $ 4,472.4 | $ 3,384.4 | $ 2,350 |
Other Income | 35.5 | 42.2 | 4 |
Net Investment Income | 364.3 | 340.9 | 327.2 |
Insurance Claims and Policy- holders’ Benefits | 3,188.3 | 2,466.5 | 1,837.4 |
Amortization of Deferred Policy Acquisition Costs | 408.3 | 377.1 | 318.3 |
Other Insurance Expenses | 611.4 | 523.4 | 326 |
Deferred Policy Acquisition Costs | 537.7 | 470 | |
Insurance Reserves | 5,471.8 | 5,366.8 | |
Unearned Premiums | 1,545.5 | 1,424.3 | |
Specialty Property & Casualty Insurance | |||
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Line Items] | |||
Earned Premiums | 3,078.4 | 2,027.4 | 1,005.7 |
Premiums Written | 3,211.3 | 2,067.4 | 1,043.5 |
Other Income | 7 | 2.4 | 1.1 |
Net Investment Income | 107.5 | 63.4 | 39.2 |
Insurance Claims and Policy- holders’ Benefits | 2,278.9 | 1,523.8 | 800.5 |
Amortization of Deferred Policy Acquisition Costs | 224.9 | 202 | 150.2 |
Other Insurance Expenses | 330.7 | 219.7 | 14.8 |
Deferred Policy Acquisition Costs | 161.6 | 121.4 | |
Insurance Reserves | 1,551 | 1,387 | |
Unearned Premiums | 1,158 | 1,025 | |
Preferred Property & Casualty Insurance | |||
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Line Items] | |||
Earned Premiums | 750.3 | 730.7 | 730.3 |
Premiums Written | 739.3 | 748.8 | 726.1 |
Other Income | 0 | 0 | 0 |
Net Investment Income | 44.1 | 61.8 | 58.9 |
Insurance Claims and Policy- holders’ Benefits | 508.8 | 538.4 | 649.5 |
Amortization of Deferred Policy Acquisition Costs | 120.1 | 117.2 | 114.6 |
Other Insurance Expenses | 113.2 | 108.3 | 103.2 |
Deferred Policy Acquisition Costs | 57.7 | 58.4 | |
Insurance Reserves | 388.5 | 452.9 | |
Unearned Premiums | 363.4 | 374.3 | |
Life & Health Insurance | |||
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Line Items] | |||
Earned Premiums | 643.7 | 626.3 | 614 |
Other Income | 8.5 | 4 | 2.6 |
Net Investment Income | 206.4 | 210.9 | 223.2 |
Insurance Claims and Policy- holders’ Benefits | 402.7 | 404.2 | 387.4 |
Amortization of Deferred Policy Acquisition Costs | 63.3 | 57.9 | 53.5 |
Other Insurance Expenses | 270.7 | 263.2 | 258.7 |
Deferred Policy Acquisition Costs | 318.4 | 290.2 | |
Insurance Reserves | 3,505.3 | 3,496.3 | |
Unearned Premiums | 24.1 | 25 | |
Other | |||
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Line Items] | |||
Earned Premiums | 0 | 0 | 0 |
Other Income | 20 | 35.8 | 0.3 |
Net Investment Income | 6.3 | 4.8 | 5.9 |
Insurance Claims and Policy- holders’ Benefits | (2.1) | 0.1 | 0 |
Amortization of Deferred Policy Acquisition Costs | 0 | 0 | 0 |
Other Insurance Expenses | (103.2) | (67.8) | $ (50.7) |
Deferred Policy Acquisition Costs | 0 | 0 | |
Insurance Reserves | 27 | 30.6 | |
Unearned Premiums | $ 0 | $ 0 |
Schedule 4 - Reinsurance Sche_2
Schedule 4 - Reinsurance Schedule (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Life Insurance in Force | |||||||||||
Gross Amount | $ 19,479.9 | $ 19,435.1 | $ 19,479.9 | $ 19,435.1 | $ 19,208.7 | ||||||
Ceded to Other Companies | 411.6 | 436.4 | 411.6 | 436.4 | 455.2 | ||||||
Assumed from Other Companies | 162.8 | 172.7 | 162.8 | 172.7 | 184 | ||||||
Net Amount | $ 19,231.1 | $ 19,171.4 | $ 19,231.1 | $ 19,171.4 | $ 18,937.5 | ||||||
Percentage of Amount Assumed to Net | 0.80% | 0.90% | 0.80% | 0.90% | 1.00% | ||||||
Premiums | |||||||||||
Gross Amount | $ 4,407.5 | $ 3,330.8 | $ 2,295.3 | ||||||||
Ceded to Other Companies | 27.4 | 31.6 | 18.2 | ||||||||
Assumed from Other Companies | 92.3 | 85.2 | 72.9 | ||||||||
Net Amount | $ 1,145.8 | $ 1,135.2 | $ 1,116.6 | $ 1,074.8 | $ 1,063.6 | $ 1,052.9 | $ 658.1 | $ 609.8 | $ 4,472.4 | $ 3,384.4 | $ 2,350 |
Percentage of Amount Assumed to Net | 2.10% | 2.50% | 3.10% | ||||||||
Life Insurance | |||||||||||
Premiums | |||||||||||
Gross Amount | $ 383.6 | $ 378.2 | $ 366.8 | ||||||||
Ceded to Other Companies | 1.2 | 1.2 | 1.4 | ||||||||
Assumed from Other Companies | 0.9 | 1 | 1.1 | ||||||||
Net Amount | $ 383.3 | $ 378 | $ 366.5 | ||||||||
Percentage of Amount Assumed to Net | 0.20% | 0.30% | 0.30% | ||||||||
Accident and Health Insurance | |||||||||||
Premiums | |||||||||||
Gross Amount | $ 188.5 | $ 174.3 | $ 171 | ||||||||
Ceded to Other Companies | 1.7 | 1.7 | 1.5 | ||||||||
Assumed from Other Companies | 5.3 | 5.3 | 5.4 | ||||||||
Net Amount | $ 192.1 | $ 177.9 | $ 174.9 | ||||||||
Percentage of Amount Assumed to Net | 2.80% | 3.00% | 3.10% | ||||||||
Property and Liability Insurance | |||||||||||
Premiums | |||||||||||
Gross Amount | $ 3,835.4 | $ 2,778.3 | $ 1,757.5 | ||||||||
Ceded to Other Companies | 24.5 | 28.7 | 15.3 | ||||||||
Assumed from Other Companies | 86.1 | 78.9 | 66.4 | ||||||||
Net Amount | $ 3,897 | $ 2,828.5 | $ 1,808.6 | ||||||||
Percentage of Amount Assumed to Net | 2.20% | 2.80% | 3.70% |