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

Did Kemper beat or miss consensus estimates last quarter?

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

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

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

What is Kemper's gross profit margin?

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

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

- **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

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

KMPR

KMPR fundamentals

You can ask Aime