What guidance did Kemper's management provide for the next earnings period?

What is the revenue and EPS growth rate for Kemper year over year?

Did Kemper beat or miss consensus estimates last quarter?

What is Kemper's latest dividend and current dividend yield?

What were the key takeaways from Kemper's earnings call?

What does Kemper do and what are its main business segments?

What were the key takeaways from Kemper’s earnings call?

What is the market's earnings forecast for Kemper next quarter?

**Key Takeaways:**
- **California Auto Challenges**: 105% combined ratio driven by doubled bodily injury limits; rate increase filing (+6.9%) pending approval. 
- **Florida Market Benefits**: $35M refunds highlight tort reform success, but 2026 rate adjustments needed. 
- **Restructuring Savings**: $33M annual savings from cost-cutting initiatives. 
- **Life Segment Stability**: $20M adjusted NOIL, 4.6% book value growth. 
- **New Product Momentum**: AZ/OR pilots show 30pts pricing improvement; TX/FL rollouts Q1 2026. 
- **Balance Sheet Strength**: $1B liquidity supports growth and debt reduction (24.6% debt-to-capital).

**【CEO Summary Section】**
- Interim CEO Carl Evans highlighted Q4 challenges in the auto business, driven by California's structural changes (doubled bodily injury limits) and Florida statutory refunds ($35M). 
- Auto segment combined ratio rose to 115% (105% ex-refunds), with California policy in force (PIF) down 7% YoY due to rate actions. 
- Life segment remains stable, contributing $20M adjusted net operating income and 4.6% book value growth. 
- Restructuring initiatives target $33M annual savings, with $15.5M Q4 restructuring charge. 
- Balance sheet strength ($1B liquidity) supports debt reduction and share buybacks. 

**【CFO Financial Commentary】**
- Q4 net loss of $8M ($0.13/share) vs. adjusted NOIL of $14.6M ($0.25/share). 
- P&C net loss $21.5M vs. Life profit $20M. 
- Florida refunds added 3.8pts to auto combined ratio; California reserve strengthening for 2023+ accident years. 
- Investment income $103M, stable from high-quality portfolio. 
- Catastrophe coverage reduced to $15M limit, reflecting lower risk profile. 

**【Auto Segment Update】**
- California rate filing (+6.9% BI) awaits approval; new product pilots in AZ/OR show 30pts pricing improvement. 
- Florida PIF stable, Texas growth resumes; targeting <50% California concentration. 
- Commercial auto combined ratio 90%, with rate adjustments for liability cost increases. 

**【Life Segment Update】**
- Face value $19.6B, average premium +6%; updated product portfolio and liability expansion. 
- Stable distributable cash flow supports overall portfolio diversification. 

**【Q&A Highlights】**
- **California Rates**: 6.9% BI rate increase filing near approval; rate earn-in over 12-18 months. 
- **Florida Refunds**: One-time $35M refund reflects tort reform benefits; 2026 rate adjustments underway. 
- **New Product Rollout**: AZ/OR pilots successful; TX/FL approvals expected Q1 2026. 
- **Commercial Auto**: No adverse PYD beyond 2023; 2024+ accident years show favorable trends. 
- **Capital Allocation**: Prioritize P&C growth, then debt reduction (24.6% debt-to-capital).

Kemper Corporation (KMPR) Q4 2025 Earnings Call Transcript

- **Q3 Results Disappointing**: Net loss of $21M due to elevated claim severity and competition, with combined ratio rising to 99.6%.
- **Restructuring Impact**: $16.2M charge for $30M annual savings, including organizational redesign and IT cost cuts.
- **California Challenges**: BI claim severity 35% developed, exceeding expectations, with 95% of book at state minimum limits.
- **Life Segment Strength**: $19M operating earnings driven by favorable mortality trends.
- **Share Buybacks**: $266M repurchased YTD, with $300M remaining under $500M authorization.

**【CEO Summary Section】**
- Interim CEO Carl Evans highlighted Q3 2025 results as disappointing due to elevated competition and claim severity trends. Key challenges included:
  - **Specialty auto market volatility**: California's January 2025 BI limit increase led to higher-than-expected claim severity.
  - **Social inflation impacts**: Rising medical costs and attorney involvement drove 51 million in adverse prior year development.
  - **Restructuring initiative**: $16.2 million after-tax charge for cost-saving measures targeting $30 million annualized savings.
- Emphasized commitment to disciplined underwriting and strategic market diversification (e.g., Florida, Texas expansion).

**【CFO Financial Commentary】**
- Q3 net loss of $21 million ($0.34/share) vs. adjusted net operating income of $20.4 million ($0.33/share).
- **Key financial metrics**:
  - Combined ratio: 99.6% (up 6 pts QoQ)
  - PIF growth: 0.6% YoY; earned premium +10.7% YoY
  - Life segment operating earnings: $19 million (favorable mortality trends)
  - Trailing 12-month operating cash flow: $585 million (near all-time high)
- Share buybacks: 5.1 million shares ($266 million) through October, with $300 million remaining under $500 million authorization.

**【CFO Financial Commentary】**
- **Challenges**:
  - California BI claims severity 35% developed, exceeding initial actuarial estimates.
  - Commercial auto adverse prior year development of 18.7 points (vs. 8.4 points Q2).
- **Strengths**:
  - Strong balance sheet ($1 billion+ liquidity)
  - 24.2% debt-to-capital ratio
  - Alternative investments driving +$9 million sequential net investment income growth

**【Q&A Highlights】**
- **Commercial auto prior year development**: 18.7 points Q3 vs. 8.4 points Q2, driven by latent large losses and social inflation.
- **Restructuring details**:
  - Organizational redesign, process efficiencies (e.g., reduced commissions), and one-time IT cost reductions.
  - 90% runoff of Kemper Preferred business (New York remaining).
- **Competitive environment**:
  - Florida/Texas PIF down 7% YoY due to aggressive competitor pricing.
  - California moving from hard to normalized market, requiring disciplined rate actions.
- **Claims process improvements**:
  - End-to-end cost management
  - AI-driven automation
  - Litigation-focused claims team restructuring

Kemper Corporation (KMPR) Q3 2025 Earnings Call Transcript

- **Market Normalization**: Specialty Auto PIF growth slows to 8% YoY (from 17% in prior quarters), reflecting industry-wide market normalization. Kemper maintains 93.5% combined ratio despite reduced growth.
- **Financial Strength**: 15% ROE, 14% book value growth, and $587M operating cash flow (all-time high). CFO highlights $550M share repurchase authorization to return capital.
- **Risk Management**: $19M adverse prior-year development in Commercial Auto due to social inflation, but business remains profitable with 90% combined ratio.
- **Investment Outlook**: Alternative investments pressured Q2 results, but core portfolio stable. Expect $100-105M/Q net investment income in H2.
- **Share Repurchases**: $550M authorization signals confidence in stock value, with $80M executed since April 1.

**【Management Opening Remarks】**
- Michael Marinaccio introduced the call, outlining the agenda and noting the release of earnings documents (Form 10-Q, earnings release, and financial supplement). He emphasized the availability of non-GAAP financial measures and the risks associated with forward-looking statements.

**【CEO Summary Section】**
- **Market Context**: The specialty auto market is normalizing after a hard market phase, with competitors increasing underwriting appetite and reducing rates. Kemper's Specialty Auto business maintained a 93.5% underlying combined ratio and 8% year-over-year PIF growth, despite slower growth due to market normalization.
- **Business Performance**: 
  - Specialty Auto: 17% earned premium growth, driven by Commercial Auto's 18% PIF growth.
  - Private Passenger Auto: Combined ratio slightly above long-term norms but stable.
  - Commercial Auto: 90% underlying combined ratio, with $19M adverse prior-year development due to social inflation.
- **Financial Highlights**: Return on adjusted equity of 15%, 14% year-over-year adjusted book value growth, and $587M trailing 12-month operating cash flow (all-time high).
- **Capital Allocation**: $80M in share repurchases since April 1, with an additional $500M authorization approved, totaling $550M.

**【CFO Financial Commentary】**
- **Net Income**: $72.6M ($1.12 EPS) and adjusted consolidated net operating income of $84.1M ($1.30 EPS).
- **Investment Portfolio**: 
  - Alternative investments pressured net investment income ($96M vs. expectations), but core portfolio performed well ($98M).
  - Anticipated rebound to $100-105M/Q in H2 due to new money rates and market stabilization.
- **Balance Sheet Strength**: 
  - Debt-to-capital ratio at 22.7% (near long-term target).
  - $1.1B available liquidity and well-capitalized subsidiaries.
- **Share Repurchases**: $80M executed since April 1, with $550M total authorization to return capital to shareholders.

**【Q&A Key Highlights】**
- **PIF Growth and Pricing**: 
  - Sequential PIF decline (70bps) reflects seasonal patterns, not company action. Long-term PIF growth expected in 3-7% range.
  - Pricing adjustments are modest and geography-specific, with no material rate filings.
- **Loss Results**: 
  - Private Passenger Auto combined ratio near 95% is acceptable; Commercial Auto's $19M adverse development is episodic and not indicative of trend.
- **California Market**: 
  - Minimum limits impact on premiums is consistent with Q1, with policies rolling off anomaly by Q3.
- **Retention Trends**: 
  - California: Stable retention due to limited supply.
  - Florida: Slight decline in policy tenure due to competitor rate adjustments.
  - Texas: Stable retention with reduced shopping activity.
- **ROE Expectations**: 
  - Adjusted ROE of 15% is attractive and sustainable, with potential for modest improvement.
  - Share repurchases (16% of market cap) signal confidence in undervalued stock.


Kemper Corporation (KMPR) Q2 2025 Earnings Call Transcript

- **Record Q1 Results**: $100M net income, 21% adjusted ROE, 16% book value growth. 
- **Auto Growth Engine**: 24% written premium, 14% PIF, 92% combined ratio. 
- **Tariff Resilience**: 1/3 loss cost exposure, 6-month policy agility, 50% liability-only book. 
- **Balance Sheet Strength**: Debt-to-capital 22.9%, $520M cash flow, $130M buyback remaining. 
- **Growth Outlook**: Maintain 96%+ ratio, tariff impacts temporary, PIF growth sustained. 
- **Investment Strategy**: High-quality portfolio, $105M/Q net investment income target. 
- **M&A Focus**: Organic growth first, selective inorganic opportunities.

**【CEO Opening Remarks】**
- Q1 2025 net income of $100 million, ROE of 14%, and adjusted ROE of 21%. Book value per share grew 13% YoY. 
- Specialty Auto combined ratio of 92%, with 24% written premium growth and 14% PIF growth. 
- Tariff resilience: Only ~1/3 of loss costs exposed to tariffs, 50% policies liability-only, 95% new business on 6-month terms. 
- Outlook: Maintain 96%+ combined ratio, expect tariff impacts to be manageable and temporary. 

**【CFO Financial Highlights】**
- Q1 net income $99.7M ($1.54 EPS), adjusted net operating income $106.4M ($1.65 EPS). 
- Debt-to-capital ratio reduced to 22.9%, down 8.1pts QoQ. Repurchased $4M of stock, $130M remaining under buyback. 
- Operating cash flow $520M trailing 12m, near all-time highs. 
- Investment portfolio: 95% investment-grade, 71% rated A+. Net investment income $101M vs. $105M guidance due to alternative asset underperformance. 

**【Specialty Auto Business】**
- California: Strong growth driven by hard market, 50% policies liability-only. 
- Florida: Competitive environment with tort reform benefits, 19% PIF growth. 
- Texas: 27% written premium growth post-rate plan refresh. 
- Commercial auto: 27% written premium growth, balanced underwriting. 

**【Q&A Key Takeaways】**
- **Market Growth Durability**: PIF growth expected to remain double-digit, with California moderating to high single-digits offset by Florida/Texas acceleration. 
- **Tariff Impact**: 1/3 of loss costs exposed, managed via 6-month policy terms and rate filings. No material earnings impact expected. 
- **Investment Strategy**: Reallocate to high-yield private credit; net investment income ~$105M/Q rolling 4Q. 
- **M&A Outlook**: Prioritize organic growth, explore inorganic opportunities to strengthen franchise. 
- **Competitive Position**: Nonstandard competitors re-entering ex-California, but California supply constrained. 
- **Loss Trends**: Frequency improving, severity in line with mid-single-digit expectations. 
- **Rate Earning**: Focus on PIF growth, not rate differential. Expansion states like Illinois, Arizona show potential.

Kemper (KMPR)-7 May 25-2025 Q1 Earnings call transcript

- **Record Financial Performance**: Q4 net income of $97 million and full-year $318 million, driven by Specialty Auto's 91.5% combined ratio.
- **Sustained Growth Momentum**: PIF grew 5% year-over-year, with Q4 sequential growth of 1.7% vs. typical 2% decline.
- **Strategic Capital Allocation**: $450 million debt retirement, dividend increase to $0.32 quarterly, and $133 million share buyback authorization.
- **Hard Market Resilience**: California's 30% premium increase for minimum limits supports margins, while Texas and other states drive diversification.
- **Commercial Auto Strength**: 6-year streak of combined ratios below 96%, with only one quarter above 100 in the last 24.

**【Management Opening Remarks】**
- Michael Marinaccio introduced the call, outlining the agenda and key presenters: Joe Lacher (CEO), Brad Camden (CFO), and Matt Hunton (President of Kemper Auto). He emphasized the company's strong financial performance and strategic focus on specialty auto and underserved markets.

**【CEO Commentary】**
- **Financial Highlights**: Q4 2024 net income of $97 million, full-year net income of $318 million. Specialty Auto achieved a 91.5% underlying combined ratio for both the quarter and year.
- **Market Strategy**: Capitalizing on the hard market through competitive pricing and disciplined underwriting. California remains a key growth driver despite regulatory challenges, with PIF (Policy In Force) growing 5% year-over-year.
- **Growth Momentum**: Q4 PIF grew 1.7% sequentially (vs. typical 2% decline), marking the third consecutive quarter of sequential growth. Florida and Texas show improving trends, while other states are seeing accelerated growth.
- **Balance Sheet Strength**: $1.3 billion in parent company liquidity, $14 million in share buybacks, and a $0.01 dividend increase to $0.32 quarterly.

**【CFO Financial Commentary】**
- **Earnings Performance**: Adjusted consolidated net operating income of $115.1 million ($1.78 per share) for the quarter, up 14% year-over-year. Specialty Auto contributed $101 million of adjusted net operating income.
- **Investment Results**: Net investment income of $103 million, with a pretax annualized book yield of 4.4%. Asset allocation is being adjusted to incrementally increase risk and support growth.
- **Capital Management**: $450 million debt retirement planned for next week, reducing debt-to-capital ratio to low 20s. Share repurchase authorization of $133 million remains.

**【Specialty Auto Business Update】**
- **Combined Ratio**: 91.7% for the quarter, driven by Private Passenger (91.4%) and Commercial Auto (93%).
- **State Performance**: California PIF growth of 5% year-over-year, Florida showing profitable growth, and Texas poised for expansion with a new product launch.
- **Commercial Auto Resilience**: 6-year streak of combined ratios below 96%, with only one quarter above 100 in the last 24.

**【Q&A Highlights】**
- **California Wildfires**: Minimal financial impact; focus on customer support. PIF growth and retention remain stable.
- **Market Diversification**: California represents ~50% of Specialty Auto, but new business growth is higher outside California. Texas and other states are key diversification areas.
- **Capital Allocation**: Prioritizes organic growth (e.g., PIF expansion) over inorganic deals. Share buybacks and dividend increases are secondary.
- **Commercial Auto Challenges**:偶发 large losses, but overall trend remains strong with a 93% combined ratio.
- **2025 Outlook**: Expect continued profitable growth in Specialty Auto, with California's hard market persisting due to regulatory changes and wildfire risks.

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