Kemper Corp (KMPR)
NYSE:KMPR
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Kemper
(NYSE:KMPR)
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Rating:56Neutral
Price Target:
$35.00
▲(11.29% Upside)
Action:ReiteratedDate:02/12/26
KMPR scores mid-range primarily due to improving financial footing (better leverage and strong recent cash generation) but ongoing volatility and underwriting pressure. The score is further held back by weak technical momentum (below major moving averages and negative MACD). Valuation (moderate P/E and solid yield) and a cautiously constructive earnings outlook partially offset the operational and near-term execution/regulatory risks.
Positive Factors
Improving leverage and balance-sheet resilience
Sustained deleveraging materially improves financial flexibility: lower leverage reduces refinancing and interest risk, supports further buybacks/debt retirements, and gives capacity for reserve strengthening or reinsurance spend. That balance-sheet resilience underpins multi-quarter recovery plans.
Negative Factors
Elevated underwriting losses in Specialty Auto
Sustained combined ratios above 100% imply underwriting losses that erode capital and margins. With bodily injury severity (notably California) and reserve strengthening adding loss pressure, the company must earn through rate increases and underwriting fixes, a multi-quarter process that keeps profitability fragile.
Read all positive and negative factors
Positive Factors
Negative Factors
Improving leverage and balance-sheet resilience
Sustained deleveraging materially improves financial flexibility: lower leverage reduces refinancing and interest risk, supports further buybacks/debt retirements, and gives capacity for reserve strengthening or reinsurance spend. That balance-sheet resilience underpins multi-quarter recovery plans.
Read all positive factors
Kemper (KMPR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.88B
Dividend Yield3.15%
Average Volume (3M)639.87K
Price to Earnings (P/E)―
Beta (1Y)0.65
Revenue Growth4.51%
EPS Growth-8.29%
CountryUS
Employees7,400
SectorFinancial
Sector Strength70
IndustryInsurance - Property & Casualty
Share Statistics
EPS (TTM)0.25
Shares Outstanding58,714,590
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 Cap1.47
Enterprise Value/Revenue0.58
Enterprise Value/Gross Profit5.32
Enterprise Value/Ebitda17.16
Forecast
1Y Price Target
$54.67Price Target Upside73.83% Upside
Rating ConsensusHold
Number of Analyst Covering5
EPS Forecast (FY)3.79
Revenue Forecast (FY)$4.57B
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 generates revenue primarily through the sale of insurance premiums across its various segments. The company earns money by collecting premiums from policyholders for property and casualty insurance as well as life and health insurance produ...
Kemper Earnings Call Summary
Earnings Call Date:Feb 04, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 05, 2026
Earnings Call Sentiment Neutral
The call conveyed a balanced message: near-term financial and underwriting challenges in Specialty Auto (notably California severity, Florida refunds, reserve strengthening, a combined ratio >100% and year-over-year declines in policies and premiums) materially pressured results and produced a GAAP loss. Offsetting strengths include a very strong operating cash flow stream ($585M TTM), ample liquidity (> $1B), debt reduction and buybacks, a stable and growing Life segment, progress on restructuring with $33M of annualized run-rate savings, strong commercial auto performance, and promising product pilots that improve competitiveness and support geographic diversification. Management is taking deliberate actions (rate filings, claims/underwriting improvements, new products, expense reductions) but timing and regulatory approvals create near-term uncertainty. Given the weight of both substantive positives and material near-term negatives, the overall tone is cautious and execution-focused.Positive Updates
Strong operating cash flow and liquidity
Trailing 12-month operating cash flow of $585 million; maintained over $1 billion in available liquidity at quarter end; used operating cash flow to retire $450 million of debt and repurchase approximately $300 million of common stock; debt-to-capital improved 6.4 percentage points to 24.6%.
Negative Updates
Quarterly net loss and negative return on equity
Reported GAAP net loss of $8 million (loss per share $0.13); adjusted consolidated net operating income was $14.6 million ($0.25 per share); produced a negative 1.2% return on equity for the quarter despite 4.6% year-over-year book value per share growth.
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Q4-2025 Updates
Positive
Negative
Strong operating cash flow and liquidity
Trailing 12-month operating cash flow of $585 million; maintained over $1 billion in available liquidity at quarter end; used operating cash flow to retire $450 million of debt and repurchase approximately $300 million of common stock; debt-to-capital improved 6.4 percentage points to 24.6%.
Read all positive updates
Company Guidance
Management guided that it is taking targeted actions to restore Specialty Auto profitability and reduce volatility after Q4 FY2025 results that included a $8M net loss ($0.13/sh), adjusted consolidated net operating income of $14.6M ($0.25/sh), a -1.2% ROE, and 4.6% y/y book value per share growth, supported by $585M trailing‑12‑month operating cash flow and >$1B available liquidity. Key metrics and actions: Specialty P&C underlying combined ratio rose 5.4 pts sequentially to 105% (ex‑Florida refunds 101.2%); Florida statutory refunds (~$35M) added 3.8 pts; personal auto ~105% (California ~105%; Florida/Texas ~95–97%), commercial auto ~90% with double‑digit policy growth, prior‑year adverse development ~3.8 pts; policies in force and written premium were down 7.3% and 9.3% y/y. They recognized $15.5M of restructuring/integration charges this quarter, reported cumulative annualized run‑rate savings of ~$33M (up $3M), retired $450M of debt and repurchased ~$300M of stock over the past year (debt‑to‑capital 24.6%, long‑term target ~22%), quarterly net investment income $103M (down $2M), Life adjusted NOI $20M with $19.6B face in force and avg premium per policy issued +6%, and a Jan 1 reinsurance CAT XL providing 95% coverage in excess of $50M up to $160M (limit $15M lower y/y). Management expects California rate filings (filed ~6.9% overall with BI increases north of 40 pts) to earn in over subsequent 6–12 months, continued reserve actions where needed, and near‑term shrinkage in CA while accelerating profitable growth in non‑CA states.Kemper Financial Statement Overview
Summary
Income Statement
56
Neutral
Balance Sheet
63
Positive
Cash Flow
70
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 4.80B | 4.63B | 4.95B | 5.45B | 5.61B |
| Gross Profit | 1.43B | 589.40M | 1.13B | -211.30M | 354.80M |
| EBITDA | 273.50M | 499.10M | -232.40M | -245.40M | -105.90M |
| Net Income | 143.30M | 317.80M | -272.10M | -286.60M | -123.70M |
Balance Sheet | |||||
| Total Assets | 12.47B | 12.63B | 12.74B | 13.36B | 14.92B |
| Cash, Cash Equivalents and Short-Term Investments | 453.90M | 1.13B | 587.00M | 7.39B | 432.30M |
| Total Debt | 1.00B | 1.39B | 1.39B | 1.39B | 1.12B |
| Total Liabilities | 9.80B | 9.85B | 10.24B | 10.92B | 10.91B |
| Stockholders Equity | 2.68B | 2.79B | 2.51B | 2.44B | 4.01B |
Cash Flow | |||||
| Free Cash Flow | 553.90M | 329.70M | -189.10M | -241.10M | 292.90M |
| Operating Cash Flow | 584.50M | 382.90M | -135.30M | -210.30M | 350.70M |
| Investing Cash Flow | 336.20M | -244.40M | 107.90M | -108.40M | -118.20M |
| Financing Cash Flow | -860.10M | -137.20M | -122.00M | 382.90M | -290.40M |
Kemper Technical Analysis
Neutral
31.45
Price Trends
32.25
Negative
35.70
Negative
44.13
Negative
Market Momentum
-0.24
Negative
52.31
Neutral
86.36
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KMPR, the sentiment is Neutral. The current price of 31.45 is above the 20-day moving average (MA) of 30.30, below the 50-day MA of 32.25, and below the 200-day MA of 44.13, indicating a neutral trend. The MACD of -0.24 indicates Negative momentum. The RSI at 52.31 is Neutral, neither overbought nor oversold. The STOCH value of 86.36 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 |
|---|---|---|---|---|---|---|---|
77 Outperform | $3.57B | 18.22 | 22.79% | ― | 54.41% | 52.71% | |
74 Outperform | $5.21B | 9.63 | 25.65% | 1.34% | 6.18% | -21.28% | |
70 Outperform | $3.81B | 25.88 | 22.94% | ― | 17.47% | 54.19% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
57 Neutral | $4.25B | -30.89 | -31.19% | ― | 30.53% | 21.82% | |
56 Neutral | $1.88B | -74.49 | 9.03% | 3.15% | 4.51% | -8.29% |
* Financial Sector Average
KMPR
Kemper
32.01
-24.42
-43.27%
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HGTY
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Kemper Corporate Events
Executive/Board Changes
Kemper Details Executive Severance and Transition for Duane Sanders
Neutral
Dec 19, 2025
Kemper Corporation has formalized the departure arrangements for Duane A. Sanders, who resigned as Executive Vice President and Chief Claims Officer, PC effective October 22, 2025, and will continue in a reduced role as Executive Vice President, E...
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.