Kemper Corp's Short Interest Rises 33.62%, 2.91 Days to Cover

Citizens JMP has lowered its price target on Kemper (KMPR) to $75 from $85, citing unfavorable development in the commercial auto segment and lower net interest income. The analyst maintains an Outperform rating on the shares.

Kemper Corporation (NYSE: KMPR) reported its second quarter 2025 operating results, highlighting a net income of $72.6 million, or $1.12 per diluted share, compared to $75.4 million, or $1.16 per diluted share, in the same period last year [1]. The company's adjusted consolidated net operating income stood at $84.1 million, or $1.30 per diluted share, down from $91.7 million, or $1.42 per diluted share, in the second quarter of 2024.

Key highlights of the quarter include the delivery of solid operating and financial results, with a trailing 12-month operating cash flow reaching a new high of approximately $590 million. The company generated a 10% return on equity (ROE) and a 15% adjusted ROE, while book value per share (BVPS) and adjusted BVPS increased by 12.0% and 14.3% year-over-year, respectively. The Specialty Property & Casualty Insurance segment achieved an 8% policies-in-force (PIF) growth year-over-year and an underlying combined ratio of 93.6%.

The Life Insurance segment continued to generate strong returns on capital and distributable cash flows. Parent liquidity remained robust at approximately $1.1 billion, with $80 million of stock repurchased between April 1 and July 31. The company's CEO, Joseph P. Lacher, Jr., expressed satisfaction with the quarter's performance, attributing it to the Specialty Auto business's solid underlying combined ratio and meaningful year-over-year growth in policies-in-force. He also noted the company's strong balance sheet and financial flexibility.

Citizens JMP recently lowered its price target on Kemper to $75 from $85, citing unfavorable development in the commercial auto segment and lower net interest income. Despite this, the analyst maintains an Outperform rating on the shares [2].

References:
[1] https://investors.kemper.com/news/news-details/2025/Kemper-Reports-Second-Quarter-2025-Operating-Results/default.aspx
[2] https://www.citizensjmp.com/news/price-target-lowered-on-kemper