2013 Kemper Corporation 401(k) Savings Plan


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 11-K
ý
ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended December 31, 2013
OR
 
¨
TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from                          to                          .
Commission file number 001-18298
 
A.
(Full title of the plan and address of the plan, if different from that of the issuer named below):
Kemper Corporation 401(k) Savings Plan
 
B.
(Name of issuer of securities held pursuant to the plan and the address of its principal executive office):
Kemper Corporation
One East Wacker Drive
Chicago, IL 60601




Required Information
Pursuant to the section of the General Instructions to Form 11-K entitled “Required Information,” this Annual Report on Form 11-K for the fiscal year ended December 31, 2013 consists of the audited financial statements of the Kemper Corporation 401(k) Savings Plan (the "Plan") for the year ended December 31, 2013 and the related schedules thereto. The Plan is subject to the Employee Retirement Income Security Act of 1974, as amended (“ERISA”), and in accordance with Item 4 of the section of the General Instructions to Form 11-K entitled “Required Information,” the financial statements and schedules furnished herewith have been prepared in accordance with the financial reporting requirements of ERISA in lieu of the requirements of Items 1-3 of that section of the General Instructions. Schedules I, II and III required by Article 6A of Regulation S-X are not submitted because they are either not applicable, the required information is included in the financial statements or notes thereto, or they are not required under ERISA.
 
Page
Report of Independent Registered Public Accounting Firm
 
 
Statements of Net Assets Available for Benefits as of December 31, 2013 and 2012
 
 
Statement of Changes in Net Assets Available for Benefits for the Year Ended December 31, 2013
 
 
Notes to the Financial Statements
 
 
Schedule of Assets (Held at End of Year) as of December 31, 2013




REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Plan Administrative Committee and Participants of Kemper Corporation 401(k) Savings Plan
We have audited the accompanying statements of net assets available for benefits of the Kemper Corporation 401(k) Savings Plan (the “Plan”) as of December 31, 2013 and 2012, and the related statement of changes in net assets available for benefits for the year ended December 31, 2013. These financial statements are the responsibility of the Plan's management. Our responsibility is to express an opinion on these financial statements based on our audits.
We conducted our audits in accordance with standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. The Plan is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Plan's internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, such financial statements present fairly, in all material respects, the net assets available for benefits of the Plan as of December 31, 2013 and 2012, and the changes in net assets available for benefits for the year ended December 31, 2013 in conformity with accounting principles generally accepted in the United States of America.
Our audits were conducted for the purpose of forming an opinion on the basic financial statements taken as a whole. The accompanying supplemental schedule of assets (held at end of year) as of December 31, 2013 is presented for the purpose of additional analysis and is not a required part of the basic financial statements, but is supplementary information required by the Department of Labor's Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974. The supplemental schedule is the responsibility of the Plan's management. Such schedule has been subjected to the auditing procedures applied in our audit of the basic 2013 financial statements and, in our opinion, is fairly stated in all material respects when considered in relation to the basic financial statements taken as a whole.

/s/ Deloitte & Touche LLP
Chicago, IL
June 17, 2014


1


Kemper Corporation 401(k) Savings Plan
Statements of Net Assets Available for Benefits
As of December 31, 2013 and 2012
(Dollars in Thousands)
 
 
2013
 
2012
Assets:
 
 
 
 
Participant-directed Investments at Fair Value (See Notes 3 and 4)
 
$
333,282

 
$
294,701

Total Investments
 
333,282

 
294,701

Notes Receivable from Participants
 
8,988

 
8,464

Employer Contributions Receivable
 
132

 
8

Participant Contributions Receivable
 
349

 
3

Net Assets Reported with Investments at Fair Value
 
342,751

 
303,176

Adjustment from Fair Value to Contract Value for Fully Benefit-responsive Investment Contracts (See Note 1)
 
(565
)
 
(2,014
)
Net Assets Available for Benefits
 
$
342,186

 
$
301,162

The Notes to the Financial Statements are an integral part of these financial statements.

2


Kemper Corporation 401(k) Savings Plan
Statement of Changes in Net Assets Available for Benefits
For the Year Ended December 31, 2013
(Dollars in Thousands)
Additions to Net Assets Attributed to:
 
 
Employer Contributions, Net of Forfeitures of $248
 
$
5,740

Participant Contributions
 
18,408

Dividends from Mutual Fund Shares
 
6,252

Interest from Notes Receivable from Participants
 
340

Dividends from Common Stock
 
457

Net Appreciation of Investments
 
44,879

Other Income
 
2

Total Additions to Net Assets
 
76,078

Deductions From Net Assets Attributed to:
 
 
Benefits Provided to Participants
 
34,722

Investment Expenses
 
332

Total Deductions from Net Assets
 
35,054

Increase in Net Assets Available for Benefits
 
41,024

Net Assets Available for Benefits, Beginning of the Year
 
301,162

Net Assets Available for Benefits, End of the Year
 
$
342,186

The Notes to the Financial Statements are an integral part of these financial statements.


3
Notes to the Financial Statements


Note 1 – Basis of Presentation and Summary of Significant Accounting Policies and Changes
The financial statements of the Kemper Corporation 401(k) Savings Plan (the “Plan”) included herein have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”).
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and changes therein and disclosure of contingent assets and liabilities. Actual results could differ materially from those estimates. Investment securities, in general, are exposed to various risks, such as interest rate risk, credit risk, and overall market volatility risk. Due to the level of risk associated with certain investment securities, it is reasonably possible that the values of investment securities will change in the near term and that such future values could be materially different from the amounts reported in the financial statements.
Significant Accounting Policies
Participant-directed Investments, which include collective trusts, an employee stock ownership ("ESOP") fund and mutual fund shares, are stated at fair value. Fair value is the price that would be received to sell an asset or transfer a liability in an orderly transaction between market participants on the measurement date. Shares of mutual funds are valued at quoted market prices that represent the net asset value of shares held by the Plan at the respective dates presented in the Statements of Net Assets Available for Benefits. The Plan uses net asset value of the shares held in common collective trusts that do not own fully benefit-responsive investment contracts as a practical expedient for determining fair value. The fair value of the ESOP fund is generally valued using quoted market prices of the underlying common stock. Participants are generally able to change investment options on a daily basis without restrictions.
The Wells Fargo Stable Return Fund N is a common collective trust that owns fully benefit-responsive investment contracts. The Statements of Net Assets Available for Benefits present the fund at fair value, as well as an additional line item showing a net adjustment from fair value to contract value for fully benefit-responsive contracts owned by the fund. The Plan uses net asset value of the shares held by the Plan as a practical expedient for determining fair value, whereas contract value represents principal plus accrued interest. The Statement of Changes in Net Assets Available for Benefits is presented on a contract value basis. Transactions with the Wells Fargo Stable Return Fund N are generally executed on a contract value basis. The Plan believes that events that would cause the Wells Fargo Stable Return Fund N to transact at less than contract value are not probable of occurring.
Purchases and sales of securities are recorded on a trade-date basis. Interest income is recorded on an accrual basis. Dividend income is recorded on the ex-dividend date. Net appreciation includes the Plan's gains and losses on investments bought and sold as well as held during the year.
Loans from participants are included in Notes Receivable from Participants and are stated at unpaid principal balances plus accrued, but unpaid interest.
Loan administration fees are charged directly to the applicable participant's account and are in included in administrative fees. Management fees and operating expenses charged to the Plan for investments in certain mutual funds are deducted from income earned and are not separately identified. Consequently, these management fees and operating expenses are recognized as reductions of investment return for such investments. All other administrative expenses of the Plan are paid by Kemper Corporation (“Kemper” or the “Company”).
Benefits provided to participants are recorded when paid. Account balances of participants who have elected to withdraw from the Plan, but have not yet been paid, were $102 thousand and $27 thousand at December 31, 2013 and 2012, respectively.


4


Note 2 – Plan Description
The following summary description of the Plan is for general information only. A more detailed description of the Plan provisions is found in the formal Plan document and in summary materials distributed to Plan participants.
The Plan is a defined contribution plan that is available to employees of Kemper and certain of its subsidiaries (collectively, the “Companies”) and is subject to the provisions of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”). Employees of the Companies generally become eligible to participate in the Plan on the first day of the month following the employee’s first full month of employment. Subject to Internal Revenue Code (the “Code”) limitations, participants are allowed to defer and contribute between 1% and 60% of their compensation to the Plan. Employees are also permitted to make rollover contributions from tax-qualified plans. Kemper provides a matching contribution of 50% of the first 6% of compensation contributed each pay period by the participant.
Participant contributions, including rollover contributions, and earnings thereon are 100% vested. Participants are 100% vested in Company contributions after three years of employment. The Plan provides for 100% vesting of Company contributions in the event of a change of control, as defined in the Plan, or on attainment of normal retirement age, death, or disability.
An individual account is maintained by the Plan’s record keeper for each participant and updated with contributions, actual investment income or loss and withdrawals. Each participant may suspend, resume, or change his or her rate of contribution at any time. If certain criteria are met, participants may withdraw all or a portion of their vested account balances, subject to certain restrictions. In addition, participants may borrow from their accounts, subject to certain limitations, at prevailing interest rates as determined by the Plan administrator. Wells Fargo Bank, N.A. serves as the Plan’s record keeper and trustee.
Forfeited nonvested accounts are used to reduce employer contributions. Forfeited nonvested accounts were $60 thousand and $15 thousand at December 31, 2013 and 2012, respectively.
Although the Company has not expressed any intent to terminate the Plan or to discontinue contributions, it is free to do so at any time, subject to the provisions set forth in ERISA. Should the Plan be terminated at some future date, all participants become 100% vested in benefits earned as of the Plan termination date.

5


Note 3 – Investments
All investments are directed by participants and held by the Plan’s trustee. Participants were permitted to invest in one or more of the following investments during 2013:
Investment
 
Sponsor
Wells Fargo Stable Return Fund (N)
 
Wells Fargo Bank, N.A.
WF/Blackrock International Equity Index CIT (N) (previously named the Wells Fargo International Equity Index (N) Fund and renamed as a result of a share class change)
 
Wells Fargo Bank, N.A.
WF/Blackrock S&P 500 Index CIT (N) (previously named the Wells Fargo S&P 500 Index (N) Fund and renamed as a result of a share class change)
 
Wells Fargo Bank, N.A.
WF/MFS Value CIT (N) (replaced the MFS Value (R4) Fund)
 
Wells Fargo Bank, N.A.
MFS Value Fund (R4) (replaced by the WF/MFS Value CIT (N))
 
MFS Funds group of companies
Baron Small Cap Fund (I)
 
BAMCO, Inc.
Dreyfus Appreciation Fund
 
The Dreyfus Corporation
John Hancock Disciplined Value Mid Cap Fund (I)
 
John Hancock Advisers, LLC
Janus Overseas Fund (I)
 
Janus Capital Management LLC
JP Morgan Large Cap Growth Fund (R6)
 
JP Morgan Investment Management Inc.
Perkins Small Cap Value Fund (I)
 
Janus Capital Management LLC
Prudential Jennison Mid Cap Growth Fund (Z)
 
Prudential Investments LLC
PIMCO Total Return Fund (I)
 
PIMCO
Invesco Equity and Income Fund (R5)
 
Invesco Advisers, Inc.
Vanguard Target Retirement Income Fund
 
The Vanguard Group, Inc.
Vanguard Target Retirement 2010 Fund
 
The Vanguard Group, Inc.
Vanguard Target Retirement 2020 Fund
 
The Vanguard Group, Inc.
Vanguard Target Retirement 2030 Fund
 
The Vanguard Group, Inc.
Vanguard Target Retirement 2040 Fund
 
The Vanguard Group, Inc.
Vanguard Target Retirement 2050 Fund
 
The Vanguard Group, Inc.
Kemper Employee Stock Ownership Plan Fund ("the Kemper ESOP Fund")
 
 
Hotchkis and Wiley Large Cap Value Fund (I)
 
Hotchkis and Wiley group of companies
Goldman Sachs Mid Cap Value Fund (I)
 
Goldman Sachs group of companies
In addition to its investment in Kemper Corporation common stock, the Kemper ESOP Fund had investments of $314 thousand and in the Wells Fargo Short-term Investment Fund (S) and $136 thousand in the Wells Fargo Short-term Investment Fund (G) at December 31, 2013 and 2012, respectively. These funds are used to provide liquidity for the Kemper ESOP Fund and are not investment options for participants.

6


Note 3 – Investments (continued)
The fair value of investments that represent five percent or more of the Plan’s net assets at fair value at December 31, 2013 were:
(Dollars in Thousands)
Party-in-
Interest
Amount
Wells Fargo Stable Return Fund (N)
*
$
69,829

WF/Blackrock S&P 500 Index CIT (N)
*
26,799

PIMCO Total Return Fund (I)
 
26,118

Dreyfus Appreciation Fund
*
22,446

JP Morgan Large Cap Growth Fund (R6)
 
21,423

Kemper ESOP Fund
*
19,297

Janus Overseas Fund (I)
 
17,826

The fair value of investments that represent five percent or more of the Plan’s net assets at fair value at December 31, 2012 were:
(Dollars in Thousands)
Party-in
Interest
 Amount
Wells Fargo Stable Return (N) Fund
*
$
71,475

PIMCO Total Return (I) Fund
 
34,350

Wells Fargo S&P 500 Index (N) Fund
*
20,299

Dreyfus Appreciation Fund
*
20,147

Janus Overseas (I) Fund
 
18,936

JP Morgan Large Cap Growth (R6) Fund
 
17,659


7


Note 3 – Investments (continued)
During 2013, the Plan’s investments (including gains and losses on investments bought and sold, as well as investments held during the year) appreciated (depreciated) in value as follows:
(Dollars in Thousands)
 
Party-in-
Interest
 
Amount
WF/Blackrock S&P 500 Index CIT (N)
 
*
 
$
6,559

JP Morgan Large Cap Growth Fund (R6)
 
 
 
5,449

Kemper ESOP Fund
 
*
 
5,438

Dreyfus Appreciation Fund
 
*
 
3,869

John Hancock Disciplined Value Mid Cap Fund (I)
 
 
 
3,473

Perkins Small Cap Value Fund (I)
 
 
 
2,996

Prudential Jennison Mid Cap Growth Fund (Z)
 
 
 
2,320

MFS Value Fund (R4)
 
 
 
2,292

Invesco Equity and Income Fund (I)
 
 
 
2,190

Baron Small Cap Fund (I)
 
 
 
2,100

Vanguard Target Retirement 2030 Fund
 
 
 
2,022

Vanguard Target Retirement 2040 Fund
 
 
 
1,809

Vanguard Target Retirement 2020 Fund
 
 
 
1,454

Janus Overseas Fund (I)
 
 
 
1,384

Wells Fargo Stable Return Fund (N)
 
*
 
1,150

WF/Blackrock International Equity Index CIT (N)
 
*
 
674

WF/MFS Value CIT (N)
 
*
 
510

Vanguard Target Retirement 2050 Fund
 
 
 
490

Vanguard Target Retirement 2010 Fund
 
 
 
198

Vanguard Target Retirement Income Fund
 
 
 
34

Hotchkis and Wiley Large Cap Value Fund (I)
 
 
 
12

Goldman Sachs Mid Cap Value Fund (I)
 
 
 
9

PIMCO Total Return Fund (I)
 
 
 
(1,553
)
Net Appreciation of Current Investments
 
 
 
$
44,879

Each party known to be a party-in-interest to the Plan has been identified with an asterisk in the three preceding tables. Additional information, including investment strategies, pertaining to the above listed investments is contained in the prospectuses and financial statements of the funds.

8


Note 4 – Fair Value Measurements
The Plan uses a hierarchical framework which prioritizes and ranks the market observability on 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 Plan 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 – 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 Plan’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. In accordance with GAAP, the Plan is not permitted to adjust quoted market prices in an active market.
The valuation of assets measured at fair value at December 31, 2013 is summarized below:
(Dollars in Thousands)
 
Level 1
 
Level 2
 
Level 3
 
Total
Fair
Value
Collective Trusts:
 
 
 
 
 
 
 
 
Principal Preservation
 
$
—

 
$
69,829

 
$
—

 
$
69,829

Large Cap Stock
 
—

 
38,800

 
—

 
38,800

International
 
—

 
4,331

 
—

 
4,331

Mutual Fund Shares:
 
 
 
 
 
 
 
 
Large Cap Stock
 
43,869

 
—

 
—

 
43,869

Small/Mid Cap Stock
 
50,680

 
—

 
—

 
50,680

International
 
17,826

 
—

 
—

 
17,826

Balanced
 
62,532

 
—

 
—

 
62,532

Fixed Income
 
26,118

 
—

 
—

 
26,118

Kemper ESOP Fund
 
19,297

 
—

 
—

 
19,297

Total Investments at Fair Value
 
$
220,322

 
$
112,960

 
$
—

 
$
333,282


9


Note 4 – Fair Value Measurements (continued)
The valuation of assets measured at fair value at December 31, 2012 is summarized below:
(Dollars in Thousands)
 
Level 1
 
Level 2
 
Level 3
 
Total
Fair
Value
Collective Trusts:
 
 
 
 
 
 
 
 
Principal Preservation
 
$
—

 
$
71,475

 
$
—

 
$
71,475

Large Cap Stock
 
—

 
20,299

 
—

 
20,299

International
 
—

 
2,403

 
—

 
2,403

Mutual Fund Shares:
 
 
 
 
 
 
 
 
Large Cap Stock
 
46,620

 
—

 
—

 
46,620

Small/Mid Cap Stock
 
37,458

 
—

 
—

 
37,458

International
 
18,936

 
—

 
—

 
18,936

Balanced
 
48,136

 
—

 
—

 
48,136

Fixed Income
 
34,350

 
—

 
—

 
34,350

Kemper ESOP Fund
 
15,024

 
—

 
—

 
15,024

Total Investments at Fair Value
 
$
200,524

 
$
94,177

 
$
—

 
$
294,701

The Plan's policy is to recognize transfers between levels as of the end of the reporting period. There were no transfers between levels in either 2013 or 2012.
Note 5 – Federal Income Tax Status
The Plan is exempt from income taxes under Section 401(a) of the Code. On January 28, 2013, the Plan, which was amended and restated effective January 1, 2013, filed for a new determination letter with the Internal Revenue Service ("IRS"). The Plan subsequently received a favorable determination letter dated September 25, 2013 from the IRS. On December 16, 2013, subsequent to the date of such letter, the Plan was amended to change, effective September 16, 2013, the definition of spouse and to change claims procedures effective January 1, 2014. The Company believes that the Plan, as amended, is currently designed and operated in compliance with the applicable requirements of the Code, and the Plan and related trust continue to be exempt from income taxes. Accordingly, no provisions for income taxes or uncertain tax positions have been included in the accompanying financial statements. The tax statute of limitations related to the Plan is open for the seven years ended December 31, 2013.
Under Federal income tax statutes, regulations, and interpretations, income taxes on amounts that a participant accumulates in the Plan are deferred and therefore not included in the participant’s taxable income until those amounts are actually distributed. Except for certain contributions made prior to April 1, 1993, contributions are considered pre-tax deposits and are not subject to Federal income taxes at the time of contribution. Prior to April 1, 1993, certain contributions were made on an after-tax basis and are not subject to income tax when they are distributed to the participant because they have already been taxed. A participant’s account balance, except for after-tax contributions made prior to April 1, 1993, is taxable income and generally is taxed at ordinary income tax rates when distributed. However, favorable tax treatment through special averaging provisions may apply to participants of a certain age. An additional 10 percent Federal income tax penalty may be imposed on all taxable income distributed to a participant unless the distribution meets certain requirements contained within Section 72 of the Code.
Taxable distributions from the Plan generally are subject to a 20 percent Federal income tax withholding unless directly rolled over into another eligible employer plan or Individual Retirement Account. Distributions of shares of Kemper common stock generally are not subject to the 20 percent withholding, and special tax rules may apply to the calculation of “net unrealized appreciation” on such stock.
If the Code and the Plan’s requirements concerning loans to participants are satisfied, the amounts loaned to participants will not be treated as taxable distributions. If, however, the loan requirements are not satisfied and a default occurs, the loans will be treated as distributions from the Plan for Federal income tax purposes, and the tax consequences discussed above for distributions may apply. Interest payments made by the participant on their loans are generally not tax deductible.
Although the IRS has not indicated that any of the Plan's tax returns are under examination, the 2010 and 2009 tax returns for Kemper Corporation are currently under examination. Such examination may also result in the examination of the Plan's tax returns for those same years.

10


Note 6 – Related Parties
Participants are permitted to invest in certain investment funds sponsored by the Wells Fargo Bank, N.A. group of companies.
Mr. Fayez Sarofim, who served as a director of Kemper until May 1, 2013, is the Chairman of the Board, Chief Executive Officer and the majority shareholder of Fayez Sarofim & Co. (“FS&C”), a registered investment advisory firm. Mr. Christopher B. Sarofim, who was elected as a director of Kemper on May 1, 2013, is Vice Chairman of FS&C. FS&C is a sub-investment adviser of the Dreyfus Appreciation Fund, which is an investment option in the Plan.
At December 31, 2013 and 2012, the Kemper ESOP Fund held 464,435 shares and 501,545 shares of Kemper common stock, respectively, at aggregate fair values of $18,986 thousand and $14,796 thousand, respectively. The Plan recorded dividends of $457 thousand from participants’ investments in the Kemper ESOP Fund for the year ended December 31, 2013.
Note 7 – Reconciliation of Financial Statements to Form 5500
The following is a reconciliation of Net Assets Available for Benefits per the Financial Statements to Total Assets per the Form 5500 and Net Assets per the Form 5500 at December 31, 2013 and 2012.
(Dollars in Thousands)
 
Dec 31,
2013
 
Dec 31,
2012
Net Assets Available for Benefits per the Financial Statements
 
$
342,186

 
$
301,162

Plus Adjustment from Contract Value to Fair Value for Fully Benefit-Responsive Investment Contracts
 
565

 
2,014

Total Assets per the Form 5500
 
342,751

 
303,176

Minus Liability for Unpaid Benefits per the Form 5500
 
(102
)
 
(27
)
Net Assets per the Form 5500
 
$
342,649

 
$
303,149

The following is a reconciliation of Increase in Net Assets Available for Benefits per the Financial Statements to Net Income per the Form 5500 for the year ended December 31, 2013.
(Dollars in Thousands)
 
Increase in Net Assets Available for Benefits per the Financial Statements
$
41,024

Plus:
 
Change in the Liability for Unpaid Benefits per the Form 5500
(75
)
Change in Adjustment from Contract Value to Fair Value for Fully Benefit-Responsive Investment Contracts
(1,449
)
Total Net Income per the Form 5500
$
39,500


11


Kemper Corporation 401(k) Savings Plan
Schedule of Assets (Held at End of Year)
As of December 31, 2013
(Dollars in Thousands)
EIN #: 95-4255452
PLAN #: 003
Party-in- interest
 
Identity of Issuer,
Borrower, Lessor
or Similar Party
 
Description of Investment
 
Current
Value
*
 
Wells Fargo Stable Return Fund (N)
 
Collective Trust
 
$
69,829

*
 
WF/Blackrock S&P 500 Index CIT (N)
 
Collective Trust
 
26,799

 
 
PIMCO Total Return Fund (I)
 
Mutual Fund Shares
 
26,118

*
 
Dreyfus Appreciation Fund
 
Mutual Fund Shares
 
22,446

 
 
JP Morgan Large Cap Growth Fund (R6)
 
Mutual Fund Shares
 
21,423

*
 
Kemper ESOP Fund
 
Common Stock
 
19,297

 
 
Janus Overseas Fund (I)
 
Mutual Fund Shares
 
17,826

 
 
Perkins Small Cap Value Fund (I)
 
Mutual Fund Shares
 
16,091

 
 
Invesco Equity and Income Fund (R5)
 
Mutual Fund Shares
 
16,085

 
 
Vanguard Target Retirement 2030 Fund
 
Mutual Fund Shares
 
14,469

 
 
John Hancock Disciplined Value Mid Cap Fund (I)
 
Mutual Fund Shares
 
13,867

 
 
Vanguard Target Retirement 2020 Fund
 
Mutual Fund Shares
 
12,424

*
 
WF/MFS Value CIT (R4)
 
Collective Trust
 
12,001

 
 
Prudential Jennison Mid Cap Growth Fund (Z)
 
Mutual Fund Shares
 
11,470

 
 
Vanguard Target Retirement 2040 Fund
 
Mutual Fund Shares
 
10,460

 
 
Baron Small Cap Fund (I)
 
Mutual Fund Shares
 
9,252

*
 
WF/Blackrock International Equity Index CIT (N)
 
Collective Trust
 
4,331

 
 
Vanguard Target Retirement 2010 Fund
 
Mutual Fund Shares
 
3,499

 
 
Vanguard Target Retirement 2050 Fund
 
Mutual Fund Shares
 
3,070

 
 
Vanguard Target Retirement Income Fund
 
Mutual Fund Shares
 
2,525

 
 
Total Investments Reported in the Financial Statements
 
 
 
333,282

*
 
Notes Receivable from Participants**
 
Participant Loans (Maturing 2013 - 2019 at Interest Rates of 4.25% - 4.25%)
 
8,988

 
 
Total Investments Reported in the 5500
 
 
 
$
342,270

*
This party is known to be a party-in-interest to the Plan.
**
Net of $49 in deemed loan distributions.
Cost information is not required for participant-directed investments and therefore is not included.


12


Pursuant to the requirements of the Securities Exchange Act of 1934, Kemper Corporation, as plan administrator of the Kemper Corporation 401(k) Savings Plan, has duly caused this annual report to be signed on its behalf by the undersigned hereunto duly authorized.
 
 
 
 
 
KEMPER CORPORATION 401(k) SAVINGS PLAN
 
 
 
 
By:
 
Kemper Corporation
 
 
 
/s/ Richard Roeske
 
Richard Roeske
 
Vice President
 
 
 
June 17, 2014
 


13


Exhibit Index
23.1

 
Consent of Deloitte & Touche LLP


14