Kemper Corp (KMPR)
NYSE:KMPR
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Kemper
(NYSE:KMPR)
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Rating:55Neutral
Price Target:
$31.00
▼(-6.49% Downside)
Action:Reiterated
Date:05/09/26
KMPR’s score is held back primarily by weakened and volatile profitability (compressed TTM margins/ROE) and bearish technicals (price below key moving averages with negative MACD). These are partly offset by solid cash generation and improving leverage, plus constructive longer-dated earnings-call guidance (rate actions and cost saves) and a strong dividend yield, though valuation is complicated by a negative P/E and near-term underwriting/regulatory headwinds.
Positive Factors
Cash generation
Strong operating and free cash flow across recent periods provides durable internal funding for claims, reinvestment, and shareholder distributions. Reliable cash generation reduces the need for external financing during underwriting cycles and supports capital allocation even if earnings remain volatile.
Negative Factors
Volatile, compressed profitability
Earnings have been unstable after multi-year losses and a 2024 rebound; current TTM margins and ROE are very low. Persistently compressed returns limit retained capital growth, make reserve rebuilding harder, and increase sensitivity to underwriting or catastrophe shocks over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash generation
Strong operating and free cash flow across recent periods provides durable internal funding for claims, reinvestment, and shareholder distributions. Reliable cash generation reduces the need for external financing during underwriting cycles and supports capital allocation even if earnings remain volatile.
Read all positive factors
Kemper (KMPR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.75B
Dividend Yield3.15%
Average Volume (3M)639.87K
Price to Earnings (P/E)―
Beta (1Y)0.68
Revenue Growth0.51%
EPS Growth-88.36%
CountryUS
Employees7,400
SectorFinancial
Sector Strength70
IndustryInsurance - Property & Casualty
Share Statistics
EPS (TTM)0.62
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 Cap1.49
Enterprise Value/Revenue0.55
Enterprise Value/Gross Profit3.93
Enterprise Value/Ebitda86.70
Forecast
1Y Price Target
$36.00Price Target Upside8.60% Upside
Rating ConsensusModerate Sell
Number of Analyst Covering3
EPS Forecast (FY)2.58
Revenue Forecast (FY)$4.50B
Kemper Business Overview & Revenue Model
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 Proper...
How the Company Makes Money
Kemper primarily makes money by underwriting insurance and investing the premiums it collects. (1) Underwriting income: The company charges policyholders premiums for coverage across its property & casualty and life/health products. Profitability ...
Kemper Earnings Call Summary
Earnings Call Date:May 06, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 10, 2026
Earnings Call Sentiment Neutral
The call presented a mixed picture: underlying businesses (Commercial Auto, Life) and strategic actions (product rollout, restructuring, $60M identified savings) show tangible progress and profitable pockets of growth, but near-term results were materially impacted by California personal auto loss trends and Florida statutory premium refunds, producing a small GAAP loss. Management has clear remediation plans (rate filings, claims/process improvements, diversification) but expects meaningful improvement to take time.Positive Updates
Commercial Auto Record Production and Strong Growth
Commercial Auto delivered record production, exceeded $1.0 billion in trailing 12-month written premium for the first time; policies in force +3.2% sequentially and +10% year-over-year, with a strong underlying combined ratio of 92.4% and ~23% annual growth since 2019.
Negative Updates
California Personal Auto Elevated Loss Costs
California PPA remains the main headwind: increases in minimum liability limits (effective Jan 1, 2025) have led to greater attorney involvement and higher liability loss severity. Management expects improvements from rate filings, claims actions and underwriting changes, but benefits will be gradual.
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Q1-2026 Updates
Positive
Negative
Commercial Auto Record Production and Strong Growth
Commercial Auto delivered record production, exceeded $1.0 billion in trailing 12-month written premium for the first time; policies in force +3.2% sequentially and +10% year-over-year, with a strong underlying combined ratio of 92.4% and ~23% annual growth since 2019.
Read all positive updates
Company Guidance
Management’s guidance is that California rate and claims actions should begin to help results in Q2 with more meaningful benefit in H2—2/3 of the California book received a 6.9% increase effective Apr. 6 and the remaining 1/3 a 3% increase in early June—and that they will continue to file additional rate actions and push non‑rate/claims initiatives; they’ve identified over $60 million of cumulative run‑rate savings (about $50 million actioned) and target cutting the Specialty Auto expense ratio to below 20% from ~22%; they expect geographic diversification and new product rollouts (BVP expanded from AZ/OR to FL and approved in TX) to reduce volatility as Florida/Texas PIFs grew 4.9% sequentially with an underlying combined ratio of 93.7%, Commercial Auto surpassed $1.0 billion TTM written premium with PIFs +3.2% sequential/+10% YoY and a combined ratio of 92.4% (23% annual growth since 2019), Life produced $18 million of adjusted operating income with ~$19.7 billion of in‑force face value, consolidated adjusted NOI was $12.5M ($0.21/sh) — $34.6M ($0.59/sh) excluding Florida refunds — GAAP net loss was $1.7M ($0.03/sh), and net investment income was $107M (up $4M Q/Q).Kemper Financial Statement Overview
Summary
Income Statement
48
Neutral
Balance Sheet
62
Positive
Cash Flow
72
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 4.71B | 4.80B | 4.63B | 4.95B | 5.45B | 5.61B |
| Gross Profit | 661.70M | 1.43B | 589.40M | 1.13B | -211.30M | 354.80M |
| EBITDA | 30.00M | 273.50M | 499.10M | -232.40M | -245.40M | -105.90M |
| Net Income | 41.90M | 143.30M | 317.80M | -272.10M | -286.60M | -123.70M |
Balance Sheet | ||||||
| Total Assets | 12.41B | 12.47B | 12.63B | 12.74B | 13.36B | 14.92B |
| Cash, Cash Equivalents and Short-Term Investments | 92.10M | 453.90M | 1.13B | 587.00M | 7.39B | 432.30M |
| Total Debt | 944.00M | 1.00B | 1.39B | 1.39B | 1.39B | 1.12B |
| Total Liabilities | 9.78B | 9.80B | 9.85B | 10.24B | 10.92B | 10.91B |
| Stockholders Equity | 2.65B | 2.68B | 2.79B | 2.51B | 2.44B | 4.01B |
Cash Flow | ||||||
| Free Cash Flow | 459.50M | 553.90M | 329.70M | -189.10M | -241.10M | 292.90M |
| Operating Cash Flow | 493.30M | 584.50M | 382.90M | -135.30M | -210.30M | 350.70M |
| Investing Cash Flow | -78.00M | 336.20M | -244.40M | 107.90M | -108.40M | -118.20M |
| Financing Cash Flow | -438.10M | -860.10M | -137.20M | -122.00M | 382.90M | -290.40M |
Kemper Technical Analysis
Negative
33.15
Price Trends
30.98
Negative
32.95
Negative
39.17
Negative
Market Momentum
-0.64
Positive
42.66
Neutral
36.67
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 33.15 is above the 20-day moving average (MA) of 31.05, above the 50-day MA of 30.98, and below the 200-day MA of 39.17, indicating a bearish trend. The MACD of -0.64 indicates Positive momentum. The RSI at 42.66 is Neutral, neither overbought nor oversold. The STOCH value of 36.67 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 |
|---|---|---|---|---|---|---|---|
78 Outperform | $5.60B | 6.41 | 36.48% | 1.34% | 9.70% | 193.37% | |
71 Outperform | $3.02B | 18.48 | 21.74% | ― | 60.95% | 43.94% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
61 Neutral | $3.67B | -59.22 | 14.47% | ― | 13.84% | 27.24% | |
55 Neutral | $1.75B | -264.26 | 1.52% | 3.15% | 0.51% | -88.36% | |
52 Neutral | $4.34B | -33.40 | -26.52% | ― | 57.13% | 38.73% |
* Financial Sector Average
KMPR
Kemper
29.71
-30.07
-50.30%
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Kemper Corporate Events
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.