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Kemper Corp (KMPR)
NYSE:KMPR
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Kemper
(NYSE:KMPR)
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Rating:58Neutral
Price Target:―
Kemper's overall score reflects mixed financial health with challenges in profitability and leverage, offset by positive earnings guidance and undervaluation. Technical indicators signal a bearish trend, but earnings call highlights suggest potential for improvement and stability in the long term.
Positive Factors
Specialty Auto Business Growth
The growth in the specialty auto business indicates strong market demand and operational efficiency, which can drive long-term profitability and competitive positioning in the auto insurance sector.
Balance Sheet Strengthening
Reducing debt levels improves financial stability and flexibility, allowing Kemper to invest in growth opportunities and withstand economic fluctuations more effectively.
Life Segment Stability
Stable performance in the Life segment contributes to diversified revenue streams and reduces dependency on more volatile segments, supporting long-term financial health.
Negative Factors
Declining Revenue Trend
A declining revenue trend poses challenges to sustaining growth and profitability, necessitating strategic adjustments to reverse the trend and enhance market competitiveness.
High Leverage
High leverage can limit financial flexibility and increase risk, particularly in volatile market conditions, impacting long-term financial stability and growth potential.
California Market Challenges
Regulatory and environmental challenges in key markets like California can hinder growth and profitability, requiring strategic adaptation to mitigate risks and capitalize on opportunities.
Kemper (KMPR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.74B
Dividend Yield2.9%
Average Volume (3M)1.06M
Price to Earnings (P/E)8.2
Beta (1Y)0.56
Revenue Growth2.75%
EPS Growth572.22%
CountryUS
Employees7,400
SectorFinancial
Sector Strength70
IndustryInsurance - Property & Casualty
Share Statistics
EPS (TTM)0.33
Shares Outstanding62,742,783
10 Day Avg. Volume878,050
30 Day Avg. Volume1,055,588
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap0.00
Enterprise Value/Revenue0.00
Enterprise Value/Gross Profit0.00
Enterprise Value/Ebitda0.00
Forecast
1Y Price Target
$58.67Price Target Upside37.63% Upside
Rating ConsensusHold
Number of Analyst Covering3
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Kemper Business Overview & Revenue Model
Company DescriptionKemper 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.
How the Company Makes MoneyKemper Corporation generates revenue primarily through the collection of premiums from policyholders in exchange for the insurance coverage it provides. In the Property & Casualty Insurance segment, it earns money by underwriting personal and commercial auto insurance, homeowners insurance, and other specialty insurance products. These products are mainly sold through a network of independent agents and brokers. In the Life & Health Insurance segment, Kemper makes money by offering life insurance, health insurance, and annuity products. The company also invests a portion of the premiums it collects in various financial instruments, generating investment income that contributes to its overall earnings. Key factors that influence Kemper's revenue include underwriting performance, claims expenses, investment returns, and policy renewal rates.
Kemper Earnings Call Summary
Earnings Call Date:Nov 05, 2025
(Q3-2025)
| Next Earnings Date:Feb 02, 2026
Earnings Call Sentiment Negative
The earnings call revealed significant challenges, including a quarterly net loss, increased competition, and elevated claims severity, particularly in California. However, the company took steps to address these issues, including a restructuring initiative and strategic share repurchases. There was also positive performance in the Life segment and strong cash flow. Despite these efforts, the negative aspects, particularly in the auto segment, outweighed the positives.Q3-2025 Updates
Positive Updates
Life Segment Success
The Life business delivered solid quarterly results with operating earnings of $19 million, driven by favorable claims experience and disciplined expense management.
Strong Cash Flow and Investment Income
Trailing 12-month operating cash flow remained strong at $585 million, near an all-time high. Quarterly net investment income totaled $105 million, up $9 million sequentially, driven by improved performance in the alternative investment portfolio.
Share Repurchase Program
From July to October, Kemper repurchased a total of 5.1 million shares at an average price of $52.65, totaling $266 million, including a $150 million accelerated share repurchase program.
Negative Updates
Net Loss and Earnings Shortfall
Kemper reported a net loss of $21 million or $0.34 per diluted share, attributed to intensified competition, elevated severity trends in claims, and infrequent items leading to a negative 3% return on equity.
Specialty Auto Segment Challenges
The underlying combined ratio increased to 99.9%, driven by bodily injury loss trends, particularly in California. Competition intensified, and adverse development was seen in commercial auto business due to bodily injury severity.
Restructuring Costs
A $16.2 million after-tax restructuring charge was recorded, expected to generate approximately $30 million in annualized run rate savings.
Software Write-off
An expense of $22 million was recorded due to the write-off of internally developed software related to the Preferred business, now 90% run-off.
Challenges in California Market
Significant challenges in California due to regulatory changes that doubled minimum financial responsibility limits, leading to higher-than-expected bodily injury severity.
Company Guidance
During Kemper's Third Quarter 2025 Earnings Call, the company reported a net loss of $21 million or $0.34 per diluted share, while adjusted consolidated net operating income stood at $20.4 million or $0.33 per diluted share. The quarter saw a negative 3% return on equity and year-over-year book value per share growth of 4.8%. Operating cash flow for the trailing 12 months remained strong at $585 million. The P&C segment's underlying combined ratio increased to 99.6%, with policies in force and earned premium growing 0.6% and 10.7% year-over-year, respectively. The Life segment contributed $19 million in operating earnings. Despite intensified competition and elevated severity trends, Kemper initiated a restructuring effort expected to yield $30 million in annualized savings and repurchased 5.1 million shares for $266 million during the quarter. The company's debt-to-capital ratio was maintained at 24.2%, and net investment income increased to $105 million.Kemper Financial Statement Overview
Summary
Kemper faces financial challenges with declining revenues, high leverage, and inconsistent cash flows. However, improvements in cash generation and management are notable. The company needs to focus on profitability and leverage to enhance stability.Income Statement
Kemper's income statement shows a declining trend in revenue and profitability over the years. The gross profit margin is consistent, but net income has turned negative, indicating issues with cost management or operations. Revenue decreased by approximately 5.6% from 2022 to 2023, with a slight improvement in 2024. The lack of EBIT and EBITDA data for the recent periods limits a comprehensive profitability analysis.45
Neutral
Balance Sheet
The balance sheet reflects high leverage with an increasing debt-to-equity ratio over the years. As of 2023, the debt-to-equity ratio is around 0.55, indicating significant reliance on debt financing. The equity ratio is unavailable due to missing total assets data for 2024, but a declining trend in stockholders' equity raises concerns about financial stability.55
Neutral
Cash Flow
Kemper's cash flow statement reveals fluctuating free cash flow with recent positive growth in 2024. The operating cash flow to net income ratio shows improvement, indicating better cash generation relative to net income. The free cash flow to net income ratio is volatile, reflecting inconsistent cash management.50
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.66B | 320.70M | 4.91B | 5.58B | 5.79B | 5.20B |
| Gross Profit | 1.75B | 263.80M | 4.91B | 5.58B | 5.79B | 5.20B |
| EBITDA | 518.20M | 445.40M | -232.40M | -245.40M | -105.70M | 601.10M |
| Net Income | 340.70M | 317.80M | -272.10M | -301.20M | -120.50M | 409.90M |
Balance Sheet | ||||||
| Total Assets | 0.00 | 12.63B | 12.74B | 13.36B | 14.92B | 14.34B |
| Cash, Cash Equivalents and Short-Term Investments | 0.00 | 1.13B | 587.00M | 7.39B | 8.42B | 8.69B |
| Total Debt | 0.00 | 1.39B | 1.39B | 1.39B | 1.12B | 1.17B |
| Total Liabilities | 9.66B | 9.85B | 10.24B | 10.92B | 1.35B | 1.46B |
| Stockholders Equity | 2.95B | 2.79B | 2.51B | 2.44B | 4.01B | 4.56B |
Cash Flow | ||||||
| Free Cash Flow | 612.00M | 329.70M | -188.00M | -241.10M | 292.90M | 371.70M |
| Operating Cash Flow | 586.60M | 382.90M | -134.20M | -210.30M | 350.70M | 425.10M |
| Investing Cash Flow | 84.40M | -244.40M | 107.90M | -108.40M | -118.20M | -757.00M |
| Financing Cash Flow | -601.40M | -137.20M | -122.00M | 382.90M | -290.40M | 401.20M |
Kemper Technical Analysis
Negative
42.63
Price Trends
50.19
Negative
54.58
Negative
58.94
Negative
Market Momentum
-1.93
Positive
24.35
Positive
4.55
Positive
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 42.63 is below the 20-day moving average (MA) of 46.98, below the 50-day MA of 50.19, and below the 200-day MA of 58.94, indicating a bearish trend. The MACD of -1.93 indicates Positive momentum. The RSI at 24.35 is Positive, neither overbought nor oversold. The STOCH value of 4.55 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for KMPR.
Kemper Risk Analysis
Kemper disclosed 28 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 |
|---|---|---|---|---|---|---|---|
83 Outperform | $3.09B | 20.31 | 22.45% | ― | 52.60% | 50.69% | |
68 Neutral | $3.81B | 39.53 | 16.42% | ― | 17.47% | 54.19% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
65 Neutral | $4.42B | 10.05 | 21.47% | 1.67% | 6.18% | -21.28% | |
62 Neutral | $3.38B | ― | 12.50% | ― | ― | ― | |
58 Neutral | $2.74B | 8.24 | 12.21% | 2.90% | 2.75% | 572.22% | |
53 Neutral | $4.33B | ― | -35.10% | ― | 22.91% | 4.95% |
* Financial Sector Average
KMPR
Kemper
42.63
-21.79
-33.82%
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Kemper Corporate Events
Financial Disclosures
Kemper Schedules Q4 2024 Earnings Release and Minimizes Wildfire Losses
Neutral
Jan 22, 2025
On January 22, 2025, Kemper Corporation announced its schedule for the fourth quarter 2024 earnings release, set to be issued after markets close on February 5, 2025. The company also provided an initial estimate of less than $1 million in preliminary losses from the California wildfires for the first quarter of 2025, indicating limited exposure to this catastrophe.
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.