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Kemper
(NYSE:KMPR)
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Rating:55Neutral
Price Target:
$27.00
▼(-6.28% Downside)
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
Consistent, positive operating and free cash flow provides durable liquidity to fund claims, maintain statutory capital, support holding-company needs, and finance remediation or growth without relying on external capital. This cash resilience helps absorb underwriting volatility and sustain operations through cycles.
Negative Factors
Large goodwill impairment & GAAP loss
A material non-cash impairment signals deterioration in the carrying value of acquired businesses and may presage weaker long-term cash generation or market positioning. It also reduces reported capital metrics, can trigger accounting-driven leverage increases, and risks further write-downs if operations don't improve.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation
Consistent, positive operating and free cash flow provides durable liquidity to fund claims, maintain statutory capital, support holding-company needs, and finance remediation or growth without relying on external capital. This cash resilience helps absorb underwriting volatility and sustain operations through cycles.
Read all positive factors
Kemper (KMPR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.54B
Dividend Yield4.88%
Average Volume (3M)639.87K
Price to Earnings (P/E)―
Beta (1Y)0.64
Revenue Growth-3.92%
EPS Growth-256.50%
CountryUS
Employees7,350
SectorFinancial
Sector Strength70
IndustryInsurance - Property & Casualty
Share Statistics
EPS (TTM)-8.41
Shares Outstanding58,923,153
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
$35.50Price Target Upside23.22% Upside
Rating ConsensusModerate Sell
Number of Analyst Covering3
EPS Forecast (FY)1.98
Revenue Forecast (FY)$4.54B
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 | 1.65B | 1.43B | 589.40M | 1.13B | -211.30M | 354.80M |
| EBITDA | -440.10M | 273.50M | 499.10M | -232.40M | -245.40M | -105.90M |
| Net Income | -495.50M | 143.30M | 317.80M | -272.10M | -286.60M | -123.70M |
Balance Sheet | ||||||
| Total Assets | 11.93B | 12.47B | 12.63B | 12.74B | 13.36B | 14.92B |
| Cash, Cash Equivalents and Short-Term Investments | 352.00 | 453.90M | 1.13B | 587.00M | 7.39B | 432.30M |
| Total Debt | 944.50M | 1.00B | 1.42B | 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
Negative
28.81
Price Trends
27.47
Negative
28.85
Negative
32.56
Negative
Market Momentum
-0.38
Positive
40.76
Neutral
26.46
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KMPR, the sentiment is Negative. The current price of 28.81 is above the 20-day moving average (MA) of 28.33, above the 50-day MA of 27.47, and below the 200-day MA of 32.56, indicating a bearish trend. The MACD of -0.38 indicates Positive momentum. The RSI at 40.76 is Neutral, neither overbought nor oversold. The STOCH value of 26.46 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
81 Outperform | $3.26B | 16.16 | 21.61% | ― | 60.27% | 30.93% | |
74 Outperform | $5.89B | 6.29 | 37.19% | 1.18% | 9.95% | 140.12% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
65 Neutral | $4.42B | 31.09 | 9.81% | ― | 7.75% | -20.74% | |
55 Neutral | $1.54B | -3.12 | -19.33% | 4.44% | -3.92% | -256.50% | |
52 Neutral | $3.87B | -26.71 | -26.78% | ― | 76.73% | 35.36% |
* Financial Sector Average
KMPR
Kemper
26.21
-26.11
-49.90%
MCY
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106.32
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46.57%
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129.69
8.83
7.31%
LMND
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-12.38%
HGTY
Hagerty Inc Class A
12.81
1.87
17.09%
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...
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.