Deferred Policy Acquisition Costs

12 Months Ended

Dec. 31, 2025

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]

DEFERRED POLICY ACQUISITION COSTS

The following table presents the balances and changes in Deferred Policy Acquisition Costs for the Specialty Property and Casualty Insurance segment, Life Insurance segment, and Non-Core Operations business for the years ended December 31, 2025, 2024 and 2023:


DOLLARS IN MILLIONS	Specialty		Life		Segment Total		Non-Core Operations		Total
Balance, January 1, 2023	$	192.7	$	404.8	$	597.5	$	38.1	$	635.6
Capitalizations	446.3		62.1		508.4		54.9		563.3
Amortization Expense1	(496.4)		(39.9)		(536.3)		(71.0)		(607.3)
Balance, December 31, 2023	$	142.6	$	427.0	$	569.6	$	22.0	$	591.6
Capitalizations	494.3		68.7		563.0		13.4		576.4
Amortization Expense1	(474.1)		(32.6)		(506.7)		(31.3)		(538.0)
Balance, December 31, 20242	$	162.8	$	463.1	$	625.9	$	4.1	$	630.0
Capitalizations	530.9		63.5		594.4		6.3		600.7
Amortization Expense1,3	(534.9)		(29.5)		(564.4)		(9.6)		(574.0)
Balance, December 31, 20252	$	158.8	$	497.1	$	655.9	$	0.8	$	656.7
1 The Life Insurance segment includes increases to amortization expense related to experience adjustments of $4.6 million, $7.4 million, and $15.6 million for the years ended December 31, 2025, 2024, and 2023, respectively. 2 Includes $1.3 million and $1.1 million attributable to Kemper Reciprocal as of December 31, 2025 and 2024, respectively, which is reported as a consolidated variable interest entity. 3Includes $2.0 million of impairment within Non-Core Operations related to a premium deficiency recognized during the year.

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 are amortized over the period in which premiums are earned. Costs deferred on traditional life insurance products and other long-duration insurance contracts are amortized on a constant level basis over the expected life of the contracts in accordance with the assumptions used to estimate the liability for future policyholder benefits for nonparticipating traditional and limited-payment contracts. The underlying assumptions for deferred policy acquisition costs and the liability for future policyholder benefits are updated concurrently.

The Company made changes to future assumptions in the fourth quarter for the Life and Health business for the years ended December 31, 2025, 2024, and 2023.

KEMPER Corp 10-K