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1. Company Snapshot

1.a. Company Description

Kemper Corporation, a diversified insurance holding company, provides property and casualty, and life and health insurance in the United States.The company operates through three segments: Specialty Property & Casualty Insurance, Preferred Property & Casualty Insurance, and Life & Health Insurance.It provides automobile, homeowners, renters, fire, umbrella, general liability, and various other property and casualty insurance to individuals, as well as commercial automobile insurance to businesses.


The company also offers life insurance, including permanent and term insurance, as well as supplemental accident and health insurance products; and Medicare supplement insurance, fixed hospital indemnity, home health care, specified disease, and accident-only plans to individuals in rural, suburban, and urban areas.It distributes its products through independent agents and brokers.The company was formerly known as Unitrin, Inc.


and changed its name to Kemper Corporation in August 2011.Kemper Corporation was incorporated in 1990 and is headquartered in Chicago, Illinois.

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1.b. Last Insights on KMPR

Kemper Corporation's recent performance was negatively impacted by its Q3 2025 earnings miss, with reported earnings of $0.33 per share, significantly lower than the year-ago figure of $1.62 per share. The company's net loss was $21.0 million, or $(0.34) per share, compared to net income of $73.7 million, or $1.14 per diluted share, in Q3 2024. Analysts' consensus rating for the company is "Hold" (MarketBeat). Additionally, several institutional investors, including Geode Capital Management LLC and AXQ Capital LP, have decreased their stakes in the company.

1.c. Company Highlights

2. Kemper's Q3 2025 Earnings: A Challenging Quarter

Kemper reported a disappointing third quarter in 2025, with earnings per share (EPS) of $0.33, significantly below the estimated $1.33. Revenue growth was not sufficient to offset the challenges faced by the company, including intensified competition and elevated severity trends in claims. The underlying combined ratio for the Specialty P&C segment was 99.9%, driven primarily by bodily injury loss trends, particularly in California. The company's EPS shortfall was largely due to adverse development in the commercial auto segment, with an unfavorable prior year development of 18.7 points.

Publication Date: Nov -07

📋 Highlights
  • Specialty P&C Combined Ratio: Underlying combined ratio rose to 99.9%, driven by elevated bodily injury loss trends, particularly in California.
  • Restructuring Cost Savings: Targeted $30M annual cost savings from process efficiencies, organizational design, and operational improvements.
  • Balance Sheet Strength: $1.0B liquidity and 24.2% debt-to-capital ratio, with $585M in 12-month operating cash flow.
  • Share Repurchases: $266M repurchased (July–October) under $300M remaining authorization, prioritizing organic growth over stock buybacks.
  • Life Segment Performance: Delivered $19M operating earnings, with strong returns on capital despite modest premium declines.

Segment Performance

The Life segment delivered solid quarterly results with operating earnings of $19 million, driven by favorable claims experience and expense levels tightly aligned with product economics. In contrast, the Specialty P&C segment struggled, with the personal auto underlying combined ratio increasing due to heightened severity, especially in California. As Matt Hunton explained, "At the time of our initial rate filings for the new limits, our pricing analysis was based on our California loss experience, complemented by our experience with similar limit increases in non-California markets."

Restructuring Efforts

In response to the challenges, Kemper is implementing a targeted restructuring initiative aimed at enhancing competitive advantages, improving profitability, and achieving consistent policy in-force (PIF) growth. The company expects to achieve $30 million in annual cost savings through organizational design, process efficiencies, and changes in how it conducts business. Kemper is also taking proactive steps to address the heightened severity in California, with ongoing conversations with the California Department of Insurance to expedite rate filings.

Valuation and Outlook

Kemper's current Price-to-Book Ratio (P/B) is 0.82, indicating that the stock may be undervalued. The company's challenging quarter and restructuring efforts may impact its near-term performance. However, with an expected mid-single-digit revenue growth in 2026 and an estimated 8.6% revenue growth next year, Kemper is positioned for potential long-term recovery. The Dividend Yield of 3.48% provides a relatively stable return for investors. As the company navigates the competitive landscape and addresses its challenges, investors will be watching for signs of improvement in underwriting profitability, as measured by the Combined Ratio.

Share Repurchase and Capital Management

Kemper repurchased $266 million of shares from July to October and has $300 million remaining in its authorization. The company will be tactical with share repurchases, prioritizing organic growth and financial flexibility. With a strong balance sheet and over $1 billion in available liquidity, Kemper is well-positioned to navigate the challenges and capitalize on opportunities.

3. NewsRoom

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AXQ Capital LP Sells 5,735 Shares of Kemper Corporation $KMPR

Nov -25

Source: defenseworld.net

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Geode Capital Management LLC Decreases Stake in Kemper Corporation $KMPR

Nov -24

Source: defenseworld.net

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Kemper - Baby Bond Offers Great Return For The Risk

Nov -18

Source: seekingalpha.com

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Kemper Corporation (NYSE:KMPR) Receives Consensus Rating of “Hold” from Analysts

Nov -15

Source: defenseworld.net

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Kemper Corporation $KMPR Stock Holdings Decreased by Y Intercept Hong Kong Ltd

Nov -06

Source: defenseworld.net

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Compared to Estimates, Kemper (KMPR) Q3 Earnings: A Look at Key Metrics

Nov -06

Source: zacks.com

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Kemper Corporation (KMPR) Q3 2025 Earnings Call Transcript

Nov -06

Source: seekingalpha.com

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Kemper (KMPR) Misses Q3 Earnings Estimates

Nov -05

Source: zacks.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (3.66%)

6. Segments

Specialty Property & Casualty Insurance

Expected Growth: 4%

Kemper Corporation's Specialty Property & Casualty Insurance segment growth is driven by increasing demand for niche insurance products, expansion into new markets, and strategic partnerships. Additionally, the company's focus on digital transformation and data analytics enables more accurate risk assessment and improved customer experience, contributing to its 4% growth.

Life Insurance

Expected Growth: 3%

Kemper Corporation's 3% growth in Life Insurance is driven by increasing demand for protection products, expansion into underserved markets, and strategic partnerships. Additionally, the company's focus on digital transformation, improved customer experience, and competitive pricing also contribute to its growth.

Reconciling Items

Expected Growth: 2%

Kemper Corporation's 2% growth is driven by increasing premiums in its auto and homeowners insurance segments, coupled with a growing investment portfolio. Additionally, the company's expansion into new markets and strategic acquisitions have contributed to its growth. Furthermore, Kemper's focus on digital transformation and cost savings initiatives have improved operational efficiency, leading to increased profitability.

Exceptional Items

Expected Growth: 1%

Kemper Corporation's exceptional items growth is driven by strategic acquisitions, expansion into new markets, and improved underwriting practices. Additionally, the company's focus on digital transformation and investments in technology have enhanced operational efficiency, leading to increased profitability.

7. Detailed Products

Life Insurance

Kemper's life insurance products provide financial protection to individuals and families in the event of death or terminal illness.

Auto Insurance

Kemper's auto insurance products provide coverage for vehicles and drivers, including liability, collision, and comprehensive coverage.

Homeowners Insurance

Kemper's homeowners insurance products provide coverage for homes and personal property, including liability and additional living expenses.

Health Insurance

Kemper's health insurance products provide coverage for medical expenses, including doctor visits, hospital stays, and prescription medications.

Dental Insurance

Kemper's dental insurance products provide coverage for routine dental care, including cleanings, fillings, and extractions.

Umbrella Insurance

Kemper's umbrella insurance products provide additional liability coverage beyond the limits of auto and homeowners policies.

8. Kemper Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

Kemper Corporation operates in the insurance industry, which has a moderate threat of substitutes. While there are alternative insurance providers, customers may not easily switch due to loyalty and familiarity with Kemper's brand.

Bargaining Power Of Customers

Kemper Corporation's customers have limited bargaining power due to the company's strong brand presence and diversified product offerings, making it difficult for customers to negotiate prices or terms.

Bargaining Power Of Suppliers

Kemper Corporation relies on a network of independent agents and brokers to distribute its products, giving them some bargaining power. However, the company's scale and diversification mitigate this power to some extent.

Threat Of New Entrants

The insurance industry has high barriers to entry, including regulatory hurdles and capital requirements, making it difficult for new entrants to compete with established players like Kemper Corporation.

Intensity Of Rivalry

The insurance industry is highly competitive, with many established players vying for market share. Kemper Corporation faces intense rivalry from competitors, which can lead to pricing pressure and advertising wars.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 42.60%
Debt Cost 5.15%
Equity Weight 57.40%
Equity Cost 8.39%
WACC 7.01%
Leverage 74.21%

11. Quality Control: Kemper Corporation passed 1 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Hanover Insurance

A-Score: 6.8/10

Value: 7.3

Growth: 4.8

Quality: 6.6

Yield: 4.0

Momentum: 8.5

Volatility: 9.3

1-Year Total Return ->

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Stock-Card
RLI

A-Score: 6.5/10

Value: 6.0

Growth: 6.9

Quality: 8.2

Yield: 7.0

Momentum: 1.5

Volatility: 9.3

1-Year Total Return ->

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Loews

A-Score: 6.1/10

Value: 6.2

Growth: 6.8

Quality: 5.3

Yield: 0.0

Momentum: 8.0

Volatility: 10.0

1-Year Total Return ->

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Kemper

A-Score: 5.5/10

Value: 8.5

Growth: 3.7

Quality: 7.5

Yield: 5.0

Momentum: 2.5

Volatility: 5.7

1-Year Total Return ->

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Stock-Card
Selective Insurance

A-Score: 5.4/10

Value: 7.7

Growth: 6.0

Quality: 6.9

Yield: 3.0

Momentum: 2.0

Volatility: 7.0

1-Year Total Return ->

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Stock-Card
Kinsale Capital Group

A-Score: 5.2/10

Value: 4.1

Growth: 9.8

Quality: 8.6

Yield: 0.0

Momentum: 3.0

Volatility: 6.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

39.46$

Current Price

39.46$

Potential

-0.00%

Expected Cash-Flows