Kemper Corp Q2 Earnings Call Highlights Strength in Specialty Auto and Commercial Auto Segments Amid Challenges.

Kemper Corp reported Q2 earnings with a return on adjusted equity of 15%, a 14% growth in adjusted book value per share, and an all-time high trailing 12-month operating cash flow of nearly $600 million. The Specialty Auto segment saw a 93.5% underlying combined ratio, an 8% YoY increase in policies in force, and a 17% growth in earned premiums. Despite facing challenges like adverse prior-year development and investment portfolio volatility, the company maintains a positive outlook and has a $500 million share repurchase authorization.

Kemper Corporation (NYSE: KMPR) reported robust financial results for the second quarter of 2025, showcasing a return on adjusted equity of 15% and a 14% growth in adjusted book value per share. The company also achieved an all-time high trailing 12-month operating cash flow of nearly $600 million [1].

The Specialty Auto segment stood out, boasting a 93.5% underlying combined ratio, an 8% year-over-year (YoY) increase in policies in force, and a 17% growth in earned premiums. Despite facing challenges such as adverse prior-year development and investment portfolio volatility, the company remains optimistic about its future prospects [1].

Kemper’s President and CEO, Joseph P. Lacher, Jr., expressed satisfaction with the quarter’s performance, attributing the success to the Specialty Auto business’s strong underlying combined ratio and meaningful YoY growth in policies-in-force. The company’s balance sheet remains strong, with liquidity at approximately $1.1 billion, and it has authorized a $500 million share repurchase program [1].

The Specialty Property & Casualty Insurance segment reported adjusted net operating income of $79.0 million in the second quarter of 2025, compared to $102.3 million in the same period last year. This decline was primarily due to a higher underlying combined ratio and adverse prior-year development, partially offset by growth from rate increases and business volumes [1].

The Life Insurance segment reported adjusted net operating income of $12.6 million for the second quarter of 2025, compared to an adjusted net operating loss of $0.2 million in the same period last year. This improvement was driven by an increase in net investment income [1].

Kemper ended the quarter with a book value per share of $46.45, an increase of 6% from the end of 2024. The company’s capital and liquidity position provides significant financial flexibility, enabling it to continue delivering value to its shareholders.

References:
[1] https://investors.kemper.com/news/news-details/2025/Kemper-Reports-Second-Quarter-2025-Operating-Results/default.aspx