KEMPER CorpKMPR
KEMPER Corp Goodwill & Intangibles Disclosure
GOODWILL AND INTANGIBLE ASSETS
Goodwill balances by business segment at December 31, 2025 and 2024 were:
| DOLLARS IN MILLIONS | 2025 | 2024 | ||||||||||||
| Specialty Property & Casualty Insurance | $ | 1,043.0 | $ | 1,043.0 | ||||||||||
| Life Insurance | 207.7 | 207.7 | ||||||||||||
| Total | $ | 1,250.7 | $ | 1,250.7 | ||||||||||
The Company tests goodwill for recoverability at the reporting unit level on an annual basis, or whenever events or circumstances indicate the fair value of a reporting unit may have declined below its carrying value. The Company performed a quantitative goodwill impairment assessment for all reporting units with goodwill as of October 1, 2025, principally using projections of discounted cash flows and market multiples comparisons to estimate the fair values of the reporting units. For each unit tested, the estimated fair value exceeded the carrying value of the reporting unit, and the Company concluded that the associated goodwill was recoverable for each reporting unit tested.
During the second quarter of 2023, the Company identified impairment indicators impacting the fair value of the Preferred Property & Casualty Insurance business in connection with ongoing evaluation of strategic alternatives for the Preferred Insurance business. As a result, the business’s fair value was determined using a combination of available market information, market comparisons and a discounted cash flow valuation method based on the present value of future earnings. The fair value calculated in the second quarter of 2023 was lower than the carrying value of the business, resulting in a pre-tax impairment charge of $49.6 million and an after-tax impairment charge of $45.5 million. A substantial portion of the goodwill that was impaired was not tax deductible. The goodwill impairment charge is reported separately in the Consolidated Statements of Income (Loss) for the year ended December 31, 2023, with a corresponding reduction to goodwill in the Consolidated Balance Sheet as of December 31, 2023.
The gross carrying amount and accumulated amortization of definite and indefinite life intangible assets at December 31, 2025 and 2024 were:
| 2025 | 2024 | |||||||||||||||||||||||||||||||||||||
| (Dollars in Millions) | Gross Carrying Amount | Accumulated Amortization | Net Amount | Gross Carrying Amount | Accumulated Amortization | Net Amount | ||||||||||||||||||||||||||||||||
| Definite Life Intangible Assets: | ||||||||||||||||||||||||||||||||||||||
| Value of Business Acquired | $ | 237.5 | $ | 227.0 | $ | 10.5 | $ | 237.5 | $ | 225.4 | $ | 12.1 | ||||||||||||||||||||||||||
| Customer Relationships | 43.8 | 42.7 | 1.1 | 43.8 | 42.3 | 1.5 | ||||||||||||||||||||||||||||||||
| Agent Relationships | 81.7 | 48.8 | 32.9 | 81.6 | 43.9 | 37.7 | ||||||||||||||||||||||||||||||||
| Trade Names | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||
Internal-Use Software1 | 330.1 | 148.1 | 182.0 | 395.1 | 180.3 | 214.8 | ||||||||||||||||||||||||||||||||
| Total Definite Life Intangible Assets | 693.1 | 466.6 | 226.5 | 758.0 | 491.9 | 266.1 | ||||||||||||||||||||||||||||||||
| Indefinite Life Intangible Assets: | ||||||||||||||||||||||||||||||||||||||
| Trade Names | 5.2 | — | 5.2 | 5.2 | — | 5.2 | ||||||||||||||||||||||||||||||||
| Insurance Licenses | 44.1 | — | 44.1 | 44.2 | — | 44.2 | ||||||||||||||||||||||||||||||||
| Total Indefinite Life Intangible Assets | 49.3 | — | 49.3 | 49.4 | — | 49.4 | ||||||||||||||||||||||||||||||||
| Total Intangible Assets | $ | 742.4 | $ | 466.6 | $ | 275.8 | $ | 807.4 | $ | 491.9 | $ | 315.5 | ||||||||||||||||||||||||||
1 During the year ended December 31, 2025, the Company recognized a $21.7 million impairment of Internal-Use Software assets included in Non-Core Operations. | ||||||||||||||||||||||||||||||||||||||
NOTE 14. GOODWILL AND INTANGIBLE ASSETS (Continued)
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 2025, 2024 and 2023, the Company recognized the following amortization expense on definite life intangible assets:
| DOLLARS IN MILLIONS | 2025 | 2024 | 2023 | |||||||||||||||||
| Specialty Property & Casualty Insurance | $ | 18.8 | $ | 16.6 | $ | 17.9 | ||||||||||||||
| Life Insurance | 3.7 | 6.0 | 3.4 | |||||||||||||||||
Total Segment Amortization Expense | 22.5 | 22.6 | 21.3 | |||||||||||||||||
Corporate and Other | 17.4 | 21.8 | 26.1 | |||||||||||||||||
Non-Core Operations1 | 23.9 | 1.9 | 1.2 | |||||||||||||||||
Total Amortization Expense | $ | 63.8 | $ | 46.3 | $ | 48.6 | ||||||||||||||
During the year ended December 31, 2025 the Company recognized a $21.7 million impairment of Internal-Use Software assets included in Non-Core Operations. | ||||||||||||||||||||
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 | 2026 | 2027 | 2028 | 2029 | 2030 | |||||||||||||||||||||||||||
| Definite Life Intangible Assets: | ||||||||||||||||||||||||||||||||
| Value of Business Acquired | $ | 1.5 | $ | 1.5 | $ | 1.4 | $ | 1.3 | $ | 1.1 | ||||||||||||||||||||||
| Customer Relationships | 0.5 | 0.3 | 0.1 | 0.1 | — | |||||||||||||||||||||||||||
| Agent Relationships | 4.9 | 4.9 | 4.9 | 4.9 | 4.1 | |||||||||||||||||||||||||||
| Internal-Use Software | 29.4 | 25.8 | 23.4 | 18.9 | 14.3 | |||||||||||||||||||||||||||
| Total | $ | 36.3 | $ | 32.5 | $ | 29.8 | $ | 25.2 | $ | 19.5 | ||||||||||||||||||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 11, 2026 | Showing above |
| 2024 | Feb 7, 2025 | |
| 2023 | Feb 7, 2024 | |
| 2022 | Feb 9, 2023 | |
| 2021 | Feb 10, 2022 | |
About Goodwill & Intangibles Disclosures
Goodwill and intangible asset disclosures reveal the premium paid in acquisitions and how management assesses whether that premium retains its value. Since goodwill is no longer amortized under US GAAP, the annual impairment test is the only mechanism that adjusts carrying values downward — making the assumptions behind that test critically important for investors.
Key signals: a history of goodwill impairments suggests management consistently overpays for acquisitions. Watch the gap between reporting unit fair value and carrying amount — when fair value exceeds carrying amount by less than 10-20%, a small decline in business performance could trigger a write-down. For finite-lived intangibles, examine useful life assumptions across customer relationships, technology, and trade names; aggressive estimates inflate near-term earnings. Compare total intangibles-to-total-assets ratios against peers to assess acquisition dependency. Rising goodwill as a percentage of equity can signal balance sheet fragility.