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Kemper
(NYSE:KMPR)
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Rating:55Neutral
Price Target:
$30.00
▲(4.13% Upside)
Action:Reiterated
Date:08/06/26
KMPR scores in the mid-range primarily due to strong cash generation and a more manageable leverage profile, but the overall score is held back by the sharp TTM profitability deterioration and weak ROE. Technicals are mildly supportive in the short term but still weak versus the 200-day trend, while valuation is mixed with a high dividend yield but an elevated P/E amid earnings volatility. The latest earnings call shows credible operating improvement efforts, yet significant GAAP charges and continued auto underwriting/reserve risks remain key overhangs.
Positive Factors
Strong cash generation
Kemper’s materially positive operating and free cash flow in the trailing twelve months demonstrates persistent internal funding capacity. Durable cash generation supports paying claims, funding reserve volatility, financing rate actions, sustaining dividends, and preserving strategic optionality without relying on market financings.
Negative Factors
Large goodwill impairment and GAAP loss
The substantial non-cash goodwill write-down reflects prior assumptions no longer supported by operating performance or market valuation. It reduces reported equity, can mechanically worsen leverage metrics, and signals risk of further impairments if operational recovery lags, creating lasting pressure on reported capital and investor confidence.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation
Kemper’s materially positive operating and free cash flow in the trailing twelve months demonstrates persistent internal funding capacity. Durable cash generation supports paying claims, funding reserve volatility, financing rate actions, sustaining dividends, and preserving strategic optionality without relying on market financings.
Read all positive factors
Kemper (KMPR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.67B
Dividend Yield4.51%
Average Volume (3M)639.87K
Price to Earnings (P/E)45.7
Beta (1Y)0.65
Revenue Growth0.51%
EPS Growth-88.36%
CountryUS
Employees7,400
SectorFinancial
Sector Strength70
IndustryInsurance - Property & Casualty
Share Statistics
EPS (TTM)-8.41
Shares Outstanding58,874,233
10 Day Avg. Volume783,619
30 Day Avg. Volume639,865
Financial Highlights & Ratios
PEG Ratio-0.33
Price to Book (P/B)0.94
Price to Sales (P/S)0.52
P/FCF Ratio4.54
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda>-0.01
Forecast
1Y Price Target
$36.00Price Target Upside24.96% Upside
Rating ConsensusModerate Sell
Number of Analyst Covering3
EPS Forecast (FY)1.99
Revenue Forecast (FY)$4.56B
Kemper Business Overview & Revenue Model
Company Description
Kemper Corporation functions as a comprehensive insurance holding entity, providing a wide array of property and casualty, alongside life and health insurance coverage throughout the United States. Its operations are divided into three primary seg...
How the Company Makes Money
Kemper primarily makes money through (1) underwriting income and (2) investment income on its insurance float. Underwriting income is generated by collecting insurance premiums and managing the combined costs of claims and claim-adjustment expense...
Kemper Earnings Call Summary
Earnings Call Date:Aug 05, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 04, 2026
Earnings Call Sentiment Neutral
The quarter shows a mixed outcome: underlying operating trends improved across P&C (sequential combined-ratio improvements), commercial auto had strong underlying performance, life remained stable and cash-generative, and cost savings are accelerating. Offsetting these positives were significant GAAP charges — a $460 million goodwill impairment and a surplus-note allowance — plus ongoing personal auto profitability challenges (particularly in California) and prior-year reserve strengthening in commercial auto. Management has prioritized restoring profitability, tightened organizational accountability, and signaled further rate and underwriting discipline.Positive Updates
Sequential Improvement in Underlying P&C Results
Normalized underlying combined ratio for specialty auto improved 0.8 points from 102.8% to 102.0%; personal auto normalized combined ratio improved 1.3 points from 106.5% to 105.2%, indicating sequential underwriting and expense progress.
Negative Updates
Large GAAP Net Loss Driven by Goodwill Impairment
Reported net loss was $464.8 million ($7.90 per share), primarily due to a $460 million non-cash goodwill impairment in the specialty auto segment triggered by sustained share price decline; this materially impacted GAAP results.
Read all updates
Q2-2026 Updates
Positive
Negative
Sequential Improvement in Underlying P&C Results
Normalized underlying combined ratio for specialty auto improved 0.8 points from 102.8% to 102.0%; personal auto normalized combined ratio improved 1.3 points from 106.5% to 105.2%, indicating sequential underwriting and expense progress.
Read all positive updates
Company Guidance
Management's guidance centered on restoring profitability first and earning growth thereafter, supported by specific metrics and actions: Q2 reported net loss $464.8M (‑$7.90/sh) but adjusted consolidated net operating income $26.3M ($0.45/sh); net investment income $105M; trailing 12‑month cash flow $434M; holding company liquidity $766M; debt‑to‑capital 28.3%. They recorded a $460M non‑cash goodwill impairment (specialty auto goodwill ≈$570M) and a $16.6M after‑tax ($21.1M pre‑tax) allowance on surplus notes (~$15M of notes remain), neither of which affects statutory capital or holding‑company liquidity. Underlying P&C trends improved: normalized combined ratio improved 0.8 pts to 102.0% (personal auto 106.5% → 105.2%, a 1.3‑pt improvement), commercial auto underlying CR 93.7% with PIF +9.2% YoY but $17.7M of prior‑year adverse development, and personal auto California share fell 2.5 pts with a ~10% sequential PIF decline in the quarter; life generated $18M of NOI, earned premiums $103M and average premium per policy +5.4% YoY. Actions going forward include additional rate and non‑rate steps (California: ~5.5% earned from recent actions and a 6.9% filing pending, management cited a likely need for double‑digit CA rate), tighter underwriting (especially in commercial auto) and continued cost reduction (now >$80M of annualized run‑rate savings, +$20M QoQ).Kemper Financial Statement Overview
Summary
Income Statement
38
Negative
Balance Sheet
63
Positive
Cash Flow
74
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 4.57B | 4.80B | 4.63B | 4.95B | 5.45B | 5.61B |
| Gross Profit | 560.90M | 1.43B | 589.40M | 1.13B | -211.30M | 354.80M |
| EBITDA | -5.20M | 273.50M | 499.10M | -232.40M | -245.40M | -105.90M |
| Net Income | -496.70M | 143.30M | 317.80M | -272.10M | -286.60M | -123.70M |
Balance Sheet | ||||||
| Total Assets | 0.00 | 12.47B | 12.63B | 12.74B | 13.36B | 14.92B |
| Cash, Cash Equivalents and Short-Term Investments | 0.00 | 453.90M | 1.13B | 587.00M | 7.39B | 432.30M |
| Total Debt | 0.00 | 1.00B | 1.39B | 1.39B | 1.39B | 1.12B |
| Total Liabilities | 9.75B | 9.80B | 9.85B | 10.24B | 10.92B | 10.91B |
| Stockholders Equity | 2.19B | 2.68B | 2.79B | 2.51B | 2.44B | 4.01B |
Cash Flow | ||||||
| Free Cash Flow | 474.50M | 553.90M | 329.70M | -189.10M | -241.10M | 292.90M |
| Operating Cash Flow | 523.00M | 584.50M | 382.90M | -135.30M | -210.30M | 350.70M |
| Investing Cash Flow | -148.00M | 336.20M | -244.40M | 107.90M | -108.40M | -118.20M |
| Financing Cash Flow | -504.20M | -860.10M | -137.20M | -122.00M | 382.90M | -290.40M |
Kemper Technical Analysis
Positive
28.81
Price Trends
27.15
Positive
29.05
Positive
33.25
Negative
Market Momentum
0.50
Negative
56.92
Neutral
54.75
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KMPR, the sentiment is Positive. The current price of 28.81 is below the 20-day moving average (MA) of 28.91, above the 50-day MA of 27.15, and below the 200-day MA of 33.25, indicating a neutral trend. The MACD of 0.50 indicates Negative momentum. The RSI at 56.92 is Neutral, neither overbought nor oversold. The STOCH value of 54.75 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for KMPR.
Kemper Risk Analysis
Kemper disclosed 29 risk factors in its most recent earnings report. Kemper reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Kemper Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
84 Outperform | $3.55B | 18.06 | 21.61% | ― | 60.95% | 43.94% | |
74 Outperform | $5.93B | 7.06 | 37.19% | 1.18% | 9.70% | 193.37% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
65 Neutral | $3.96B | 22.03 | 13.93% | ― | 13.84% | 27.24% | |
55 Neutral | $1.67B | 45.69 | 1.52% | 4.44% | 0.51% | -88.36% | |
52 Neutral | $3.71B | -25.83 | -26.78% | ― | 76.73% | 35.36% |
* Financial Sector Average
KMPR
Kemper
29.83
-19.03
-38.95%
MCY
Mercury General
107.44
38.10
54.95%
PLMR
Palomar Holdings
136.82
13.93
11.34%
LMND
Lemonade
51.86
4.60
9.73%
HGTY
Hagerty Inc Class A
13.49
4.15
44.43%
Kemper Corporate Events
Business Operations and StrategyExecutive/Board Changes
Kemper Announces Leadership Transition in Auto Insurance Unit
Neutral
Jul 21, 2026
Kemper Corporation, a diversified U.S. insurer with a major auto segment, announced a leadership change in its Kemper Auto division on July 20, 2026. The move affects the executive team overseeing its auto insurance operations, a key part of the c...
Business Operations and StrategyExecutive/Board Changes
Kemper Names Stephen McAnena CEO Amid Leadership Changes
Positive
May 27, 2026
On May 27, 2026, Kemper Corporation announced that its board appointed veteran insurance executive Stephen J. McAnena as president, chief executive officer and director, effective June 1, 2026, ending the interim tenure of C. Thomas Evans Jr., who...
Executive/Board ChangesShareholder Meetings
Kemper Shareholders Reaffirm Board, Pay, and Auditor Oversight
Positive
May 7, 2026
At its Annual Meeting of Shareholders held on May 6, 2026, Kemper investors elected all nine director nominees listed in the company’s proxy materials, reaffirming the current board’s composition and governance direction. The vote tall...
Business Operations and StrategyPrivate Placements and Financing
Kemper Reduces Credit Facility to Enhance Cost Efficiency
Positive
May 6, 2026
On April 28, 2026, Kemper Corporation notified JPMorgan Chase Bank that it would reduce the total borrowing capacity under its existing credit agreement from $600 million to $350 million, effective May 4, 2026. The company stated that it still vie...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.