Kemper Corporation

Kemper Corporation reported a second-quarter GAAP net loss of $464.8 million, or $7.90 per share, driven by a $460 million non-cash goodwill impairment in its specialty auto segment. Adjusted net operating income was $26.3 million, or $0.45 per share, as the insurer cited sequential improvement in underlying operating performance. CEO Steve McAnena said restoring profitability is the primary priority, with growth to be pursued only where it can be achieved profitably. The specialty auto segment’s normalized underlying combined ratio improved 0.8 points sequentially to 102%, with personal auto improving 1.3 points to 105.2% but remaining challenged in California, where Kemper is reducing exposure and pursuing additional rate increases. Commercial auto posted an underlying combined ratio of 93.7% but will see more disciplined growth amid adverse prior-year reserve development, while the life business generated $18 million in net operating income and the company identified more than $80 million in annualized cost savings.

Kemper Corporation reported second-quarter 2026 revenue of $1.12 billion, missing the Zacks Consensus Estimate of $1.23 billion by 9.5% and declining 8.9% year-over-year. Earnings per share came in at $0.45, a 40.63% positive surprise over the consensus estimate of $0.32, though down from $1.30 a year ago. Within the Specialty Property & Casualty Insurance segment, earned premiums fell 11.3% to $896.6 million, driven by an 18% drop in personal automobile earned premiums to $647.4 million, while commercial automobile earned premiums rose 12.5% to $249.2 million. The segment's combined ratio improved to 104%, better than the 105.1% analyst estimate, and its total incurred loss and LAE ratio was 83.4% versus an 83.3% estimate. Life Insurance earned premiums grew 2.2% to $102.7 million, and net investment income increased 9.9% to $105.4 million.

Pomerantz LLP is investigating claims on behalf of investors of Kemper Corporation concerning whether Kemper and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices. The investigation follows Kemper's May 6, 2026 disclosure that an increase in minimum liability limits effective January 1, 2025 has led to greater attorney involvement in claims and higher loss costs, a trend that management admitted has developed over several quarters. Kemper also stated that although the relevant California rate filing was 6.9% in aggregate, it was about 50 points on bodily injury. On this news, Kemper’s stock price fell $3.37 per share, or 10.28%, to close at $29.40 per share on May 7, 2026.

Kemper reported first-quarter revenues of $1.11 billion, down 6.9% year on year and 5.5% below analyst expectations, making it the weakest performer in a group of four multi-line insurance stocks tracked this quarter. The company also missed estimates on net premiums earned and earnings per share, with interim CEO C. Thomas Evans, Jr. citing continued pressure in California personal auto. In contrast, Chubb led the group with revenues of $15.3 billion, up 11.9% year on year and beating estimates by 4.7%, while Hartford and AIG also reported revenue growth but mixed results against other metrics. Overall, the group beat revenue consensus by 9.8% but saw average share prices decline 1.9% since reporting, with Kemper's stock down 13.8% to $28.26.

Pomerantz LLP is investigating claims on behalf of investors of Kemper Corporation concerning potential securities fraud or unlawful business practices. The investigation follows Kemper's May 6, 2026 disclosure that increased minimum liability limits in California led to greater attorney involvement and higher loss costs, with management noting the trend had developed over several quarters. On this news, Kemper's stock price fell $3.37 per share, or 10.28%, to close at $29.40 per share on May 7, 2026. Investors are advised to contact Danielle Peyton at newaction@pomlaw.com or 646-581-9980, extension 7980.

Kirby McInerney LLP is investigating potential claims on behalf of Kemper Corporation investors concerning possible violations of federal securities laws. The investigation follows Kemper's May 6, 2026 disclosure that increased minimum liability limits in California led to greater attorney involvement and higher loss costs, with management noting the trend had developed over several quarters. Kemper also stated that while the relevant California rate filing was 6.9% in aggregate, it was about 50 points on bodily injury. On this news, Kemper shares fell $3.37, or approximately 10%, from $32.77 on May 6, 2026 to close at $29.40 on May 7, 2026. No lawsuit has been filed, and the investigation is ongoing to determine whether claims may be brought under federal securities laws.