Download PDF

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.

Show Full description

1.b. Last Insights on KMPR

Kemper Corporation's recent performance was negatively impacted by weaker-than-expected quarterly earnings, with a net loss of $8.0 million, or $(0.13) per share, in Q4 2025, compared to net income of $97.4 million, or $1.51 per diluted share, in Q4 2024. The company's adjusted consolidated net operating income was $14.6 million, or $0.25 per share, missing estimates. Analysts have a consensus "Reduce" rating on the stock, with three sell ratings, two hold ratings, and two buy ratings.

1.c. Company Highlights

2. Kemper's Q4 2025 Earnings: Challenges in Specialty Auto

Kemper reported adjusted consolidated net operating income of $14.6 million, or $0.25 per share, for the fourth quarter of 2025, significantly missing analyst estimates of $0.85 per share. The return on equity was a negative 1.2%. The company's trailing 12-month operating cash flow remained strong at $585 million. The P&C segment's underlying combined ratio increased 5.4 points sequentially to 105%, driven by elevated bodily injury claim severity in California and statutory refunds in Florida.

Publication Date: Feb -08

📋 Highlights
  • Missed Earnings Expectations: Q4 net income fell to $14.6M ($0.25/share) with -1.2% ROE.
  • P&C Combined Ratio Deterioration: Sequential 5.4-point rise to 105%, driven by California BI severity and Florida refunds.
  • California Strategic Adjustments: New business slowed due to BI cost challenges; rate filings underway with state regulators.
  • Florida Market Stabilization: Tort reforms reduced loss costs, with commercial auto at 90% combined ratio and mid-90s target.
  • Capital Allocation Focus: $585M trailing cash flow supports organic growth in Texas/Florida and potential new product launches.

Segment Performance

The Life business delivered solid results, driven by disciplined expense management. In contrast, the Specialty Auto business faced challenges, with the personal auto segment producing a combined ratio of 105. The commercial auto segment remained relatively stable with a combined ratio of 90. According to Matthew Hunton, the company made pricing adjustments, which led to a meaningful improvement in business direction, stabilizing policies in force (PIF) in Florida and seeing sequential growth in Texas.

Challenges and Actions

The key challenge in the auto business is accurately predicting loss costs and pricing the business appropriately, particularly in states like California, where the recent doubling of state minimum limits is driving a structural change in bodily injury costs. Kemper has taken decisive non-rate actions, resulting in the slowing of new business in California, and is actively working with the California Department of Insurance on rate filings to address this liability rate need.

Valuation and Outlook

With a Price-to-Book Ratio of 0.77, Kemper's stock appears to be undervalued relative to its book value. Analysts estimate next year's revenue growth at 6.3%. Given the current challenges and the company's actions to improve results, it remains to be seen whether Kemper can achieve this growth target. The company's Dividend Yield of 3.74% provides some support to the stock, considering its current difficulties.

Future Prospects

Kemper is focused on restoring California profitability and building a more diversified personal auto portfolio. The company is also launching new products in the next quarter or two, which should further accelerate competitiveness and PIF production. With a well-capitalized and liquid balance sheet, Kemper is well-positioned to navigate the current challenges and capitalize on future opportunities.

3. NewsRoom

Card image cap

Kemper Corporation (NYSE:KMPR) Receives $56.50 Average Target Price from Brokerages

Mar -23

Source: defenseworld.net

Card image cap

First Trust Advisors LP Increases Position in Kemper Corporation $KMPR

Mar -13

Source: defenseworld.net

Card image cap

Dimensional Fund Advisors LP Has $120.20 Million Holdings in Kemper Corporation $KMPR

Mar -12

Source: defenseworld.net

Card image cap

Kemper Corporation (KMPR) Presents at 47th Annual Raymond James Institutional Investor Conference Transcript

Mar -03

Source: seekingalpha.com

Card image cap

Kemper Executives to Speak at Raymond James 47th Annual Investors Conference

Feb -24

Source: businesswire.com

Card image cap

New York State Common Retirement Fund Has $2.68 Million Stock Holdings in Kemper Corporation $KMPR

Feb -08

Source: defenseworld.net

Card image cap

Kemper (NYSE:KMPR) Reaches New 52-Week Low Following Weak Earnings

Feb -06

Source: defenseworld.net

Card image cap

Kemper (KMPR) Q4 Earnings: How Key Metrics Compare to Wall Street Estimates

Feb -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: 7.2

Growth: 4.8

Quality: 6.7

Yield: 4.0

Momentum: 8.5

Volatility: 9.7

1-Year Total Return ->

View Full Report
Stock-Card
RLI

A-Score: 6.6/10

Value: 5.5

Growth: 6.9

Quality: 8.4

Yield: 8.0

Momentum: 1.5

Volatility: 9.3

1-Year Total Return ->

View Full Report
Stock-Card
Loews

A-Score: 6.1/10

Value: 6.3

Growth: 6.7

Quality: 5.3

Yield: 0.0

Momentum: 8.5

Volatility: 10.0

1-Year Total Return ->

View Full Report
Stock-Card
Selective Insurance

A-Score: 5.3/10

Value: 7.7

Growth: 6.0

Quality: 6.8

Yield: 3.0

Momentum: 1.5

Volatility: 7.0

1-Year Total Return ->

View Full Report
Stock-Card
Kinsale Capital Group

A-Score: 5.2/10

Value: 4.1

Growth: 9.7

Quality: 8.8

Yield: 0.0

Momentum: 3.0

Volatility: 5.7

1-Year Total Return ->

View Full Report
Stock-Card
Kemper

A-Score: 4.8/10

Value: 7.8

Growth: 3.7

Quality: 6.2

Yield: 5.0

Momentum: 1.0

Volatility: 5.3

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

30.56$

Current Price

30.56$

Potential

-0.00%

Expected Cash-Flows