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Kemper KMPR Deferred Policy Acquisition Costs, Amortization Expense

Discontinued — last reported Q1 '25

Deferred Policy Acquisition Costs, Amortization Expense at other companies

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Segments

By segment

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Specialty Property & Casualty Insurance$121.4M-11.5%
Life Insurance$8M+14.3%

Other financials

Income statement

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Revenue$1.1B-10.8%
Operating income$132.4M+440%
Net income-$464.8M-740%
EPS (diluted)-$7.90-805%

Balance sheet

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Cash & equivalents$81.2M-54.1%
Total debt$944.5M-5.7%
Total equity$2.2B+493%
Total assets$11.9B-4.4%

Cash flow

See full
Operating cash flow$30.5M-66.0%
CapEx$11.4M+50.0%
Free cash flow$19.1M-76.7%

Valuation

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Market cap$1.76B-42.1%
Enterprise value$2.62B-32.2%
P/S0.4×-0.2×

Profitability

See full
Net margin-10.7%-17.8pp
FCF margin8.7%-2.8pp

Returns & leverage

See full
Return on equity-38%-132pp
Debt / equity0.4×-2.3×

Where this comes from

Reported directly by Kemper in its filing.

Tagged under the XBRL concept us-gaap:DeferredPolicyAcquisitionCostAmortizationExpense.

The source filing: Kemper’s 10-Q, filed May 7, 2025.

Filed
May 7, 2025
Fiscal quarter
Q1 FY2025
Calendar quarter
Q1 2025
Accession
0000860748-25-000131
(Dollars in Millions)SpecialtyLifeSegment TotalNon-Core OperationsTotal
Balance, December 31, 20241$162.8$463.1$625.9$4.1$630.0
Capitalizations143.014.9157.91.7159.6
Amortization Expense2(128.9)(7.1)(136.0)(2.4)(138.4)
Balance, March 31, 20251$176.9$470.9$647.8$3.4$651.2
1 Includes $1.5 million and $1.1 million attributable to Kemper Reciprocal as of March 31, 2025 and December 31, 2024, respectively, which is reported as a consolidated variable interest entity.2 The Life Insurance segment includes increases to amortization expense related to experience adjustments of $0.9 million for the three months ended March 31, 2025.

Item 1. Financial Statements

FAQ

What is Kemper's deferred policy acquisition costs, amortization expense?
Kemper (KMPR) reported deferred policy acquisition costs, amortization expense of $138.4M in Q1 2025.
How has Kemper's deferred policy acquisition costs, amortization expense changed year-over-year?
Kemper's deferred policy acquisition costs, amortization expense increased by 4.5% year-over-year, from $132.4M to $138.4M.
What is the long-term trend for Kemper's deferred policy acquisition costs, amortization expense?
Over 2 years (2022 to 2024), Kemper's deferred policy acquisition costs, amortization expense has grown at a -12.7% compound annual growth rate (CAGR), from $705.2M to $538M.
What does deferred policy acquisition costs, amortization expense mean?
The periodic expense recognized as capitalized policy acquisition costs are systematically written off over the life of the insurance contracts. This metric indicates the rate at which the company is expensing the costs associated with its historical sales efforts.

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