Kemper(KMPR) - 2025 Q4 - Annual Report

Capital and Regulatory Compliance - Kemper's total capital held by domestic insurance subsidiaries exceeded minimum levels required under applicable Risk-Based Capital (RBC) requirements as of December 31, 2025[86]. - The total amount of capital held by Kemper Bermuda Ltd. exceeded the minimum levels required by the Bermuda Monetary Authority's Enhanced Capital Requirement[86]. - Kemper's insurance subsidiaries are required to pay assessments to fund policyholder losses or liabilities of insolvent insurance companies under guaranty fund laws in most states[87]. - Kemper's insurance operations are subject to extensive regulation, including policy forms, rate setting, and claims handling practices[83]. - The company is subject to numerous federal and state laws imposing significant requirements for protecting personal and confidential information[88]. - Kemper's insurance subsidiaries are required to maintain a cybersecurity program and incident response plan under extensive cybersecurity regulations[91]. Investment Strategy and Market Risks - The company employs a total return investment strategy with an emphasis on yield while maintaining liquidity to meet short- and medium-term insurance obligations[81]. - The company faces risks related to increased costs from inflation affecting insurance claims, including material costs and personal injury claims[29]. - Kemper's ability to address market developments can be adversely impacted by lengthy delays in the approval process for policy rates and forms[84]. Regulatory and Legislative Focus - The company anticipates a continuing focus on new regulatory and legislative proposals at state and federal levels that further regulate practices regarding privacy and security of personal information[91]. Employee Engagement and Development - As of December 31, 2025, Kemper had approximately 7,400 employees, including 7,300 full-time and 100 part-time employees[103]. - Kemper's employee engagement is measured through surveys, focusing on aspects like career development and leadership, with results reviewed by business leaders[108]. - The company offers a comprehensive total rewards program, including health insurance, 401(k) matching, and tuition reimbursement[111]. - Kemper's hybrid work model enhances flexibility while promoting in-person collaboration and community building among employees[112]. - The company has been recognized by U.S. News & World Report as one of the Best Companies to Work For in Finance/Insurance and in the Midwest in 2025[110]. - Kemper's commitment to compliance and ethics includes multiple reporting channels for misconduct and a culture of integrity[104]. - The company conducts annual reviews of succession plans for its executive leadership team to ensure leadership continuity[106]. - Kemper's employee development initiatives include internships, rotational programs, and leadership training to support career growth[105]. - The company emphasizes a strong, inclusive culture that values diverse perspectives and collaboration to drive success[101].