Kemper Announces $150 Million Accelerated Share Repurchase, Boosting Shareholder Value

Kemper Corporation has announced a $150 million accelerated share repurchase agreement with Goldman Sachs, utilizing a portion of its $550 million share repurchase authorization. The company aims to complete the transaction within three months and believes its shares are undervalued, making this a strategic move to enhance shareholder value. Kemper serves over 4.7 million policies through its Kemper Auto and Kemper Life brands, with approximately 24,000 agents and brokers nationwide.

Kemper Corporation (NYSE: KMPR) has announced an accelerated share repurchase (ASR) transaction with Goldman Sachs & Co. LLC, amounting to $150 million. This move is part of the company's broader $550 million share repurchase authorization and reflects a strategic effort to capitalize on what management believes is an undervalued stock.

Under the ASR agreement, Kemper will pay $150 million to Goldman Sachs on August 14, 2025, and is expected to receive an initial delivery of 2,279,203 shares of Kemper common stock. The transactions are anticipated to be completed within approximately three months [1].

Joseph P. Lacher, Jr., President and CEO of Kemper, stated, "This accelerated share repurchase reflects our strong confidence in the business and our disciplined approach to creating shareholder value. We believe our shares are undervalued, and this transaction represents a compelling use of capital. We remain focused on executing our balanced capital deployment strategy, utilizing resources to support long-term value creation" [1].

The ASR agreement stipulates that the total number of shares to be repurchased will be based on the volume-weighted average price of Kemper common stock on specified dates during the term of the ASR agreement, less a discount, and subject to customary adjustments [1].

Kemper Corporation is one of the nation's leading specialized insurers, with approximately $13 billion in assets. It provides affordable and easy-to-use personalized insurance solutions to individuals, families, and businesses through its Kemper Auto and Kemper Life brands. Kemper serves over 4.7 million policies, is represented by approximately 24,000 agents and brokers, and has approximately 7,500 associates dedicated to meeting the ever-changing needs of its customers [1].

The market reacted positively to the news, with Kemper's stock experiencing a 0.73% intraday gain, signaling confidence in the company's disciplined capital returns and long-term value creation [4].

References:
[1] https://www.morningstar.com/news/business-wire/20250813574508/kemper-announces-150-million-accelerated-share-repurchase
[2] https://finance.yahoo.com/news/kemper-announces-150-million-accelerated-213300826.html
[3] https://www.morningstar.com/news/business-wire/20250813574508/kemper-announces-150-million-accelerated-share-repurchase
[4] https://www.ainvest.com/news/kemper-150m-share-buyback-strategic-move-boost-shareholder-signal-undervaluation-2508/