Kemper | 8-K: FY2026 Q2 Revenue: USD 1.093 B

Revenue: As of FY2026 Q2, the actual value is USD 1.093 B.

EPS: As of FY2026 Q2, the actual value is USD -7.9, missing the estimate of USD 0.3233.

EBIT: As of FY2026 Q2, the actual value is USD -458.1 M.

Overall Financial Performance

Kemper Corporation reported a net loss of - $464.8 million, or - $7.90 per share, for the second quarter of 2026, which included a non-cash goodwill impairment of - $460 million, or - $7.82 per share. This compares to a net income of $72.6 million, or $1.12 per diluted share, in the second quarter of 2025. For the six months ended June 30, 2026, the net loss was - $466.5 million, compared to a net income of $172.3 million in the prior year period. Adjusted Consolidated Net Operating Income for the second quarter of 2026 was $26.3 million, or $0.45 per share, down from $84.1 million, or $1.30 per diluted share, in the second quarter of 2025. For the six months ended June 30, 2026, Adjusted Consolidated Net Operating Income was $38.8 million, compared to $190.5 million in the prior year period. Total revenues for the second quarter of 2026 decreased by $132.9 million to $1,092.7 million. Other key adjustments for the second quarter of 2026 included Investment-Related Items of $19.7 million, Acquisition and Disposition Related Transaction, Integration, Restructuring and Other Costs of $11.6 million, and Non-Core Operations of - $0.2 million.

Capital and Liquidity

Total Kemper Corporation Shareholders’ Equity as of June 30, 2026, was $2,192.8 million, an 18% decrease of $488.6 million since year-end 2025. At quarter-end, Kemper and its direct non-insurance subsidiaries held $130.0 million in cash and investments and had $350.0 million of available borrowing capacity under the revolving credit agreement. Book value per share was $37.22 at June 30, 2026, a 19% decrease from $45.71 at the end of 2025. Adjusted book value per share was $27.55 at quarter-end, compared to $28.06 at the end of 2025. A quarterly dividend of $0.32 per share, totaling $19.3 million, was declared and paid on June 2, 2026. The Debt-to-Capital ratio was 28.3%, and Parent Company Liquidity included $766 million in Borrowings Available Under Credit Agreement & from Subs.

Cash Flow

The trailing twelve-month Operating Cash Flow was $434 million.

Investment Portfolio

Net Investment Income for the quarter was $105 million. The Pre-tax Equivalent (PTE) Annualized Book Yield on Core Portfolio was 4.6%, with approximately 70% of the fixed income portfolio rated A or higher.

Specialty Property & Casualty Insurance Segment

The Specialty Property & Casualty Insurance segment reported adjusted net operating income of $15.8 million in the second quarter of 2026, a decrease from $79.0 million in the second quarter of 2025. The Underlying loss and LAE ratio for Specialty Personal Automobile rose to 83.8% in Q2 2026 from 72.5% in Q2 2025. Earned premiums for Personal Automobile decreased to $647.4 million in Q2 2026 from $789.3 million in Q2 2025, while Commercial Automobile earned premiums increased to $249.2 million from $221.5 million over the same period. Total segment revenues were $951.6 million in Q2 2026, down from $1,063.1 million in Q2 2025. The Combined Ratio for the segment was 104.0% in Q2 2026, up from 95.4% in Q2 2025, and the Underlying Combined Ratio was 102.3% in Q2 2026, compared to 93.6% in Q2 2025. Policies In-Force (PIF) declined 5.2% Quarter-over-Quarter (QoQ). Total Earned Premiums for the segment were $897 million, an 11.3% decrease Year-over-Year (YoY). The Underlying Loss & LAE Ratio was 81.7%, and the Expense Ratio was 20.6%. The Normalized ULCR was 102.0% (versus 102.8% in 1Q’26), and the Normalized Expense Ratio was 20.5% (versus 21.5% in 1Q’26).

Personal Auto

The Personal Auto business reported a Combined Ratio of 105.0% and an Underlying Combined Ratio (ULCR) of 105.5%. PIF declined 6.5% QoQ, and Earned Premiums were $647 million, an 18.0% decrease YoY. The Underlying Loss & LAE Ratio was 83.8%, and the Expense Ratio was 21.7%. The Normalized ULCR was 105.2% (versus 106.5% in 1Q’26). California PPA had Earned Premiums of $442 million and an Underlying Combined Ratio of 107.3%, with PIF decreasing 10.0% sequentially. Florida/Texas PPA had Earned Premiums of $155 million and an Underlying Combined Ratio of 95.5%, with PIF increasing 7.0% sequentially.

Commercial Auto

The Commercial Auto business reported a Combined Ratio of 101.2% and an Underlying Combined Ratio (ULCR) of 93.7%. PIF increased 2.6% QoQ and 9.2% YoY. Earned Premiums were $249 million, a 12.2% increase YoY. The Underlying Loss & LAE Ratio was 76.1%, and the Expense Ratio was 17.6%. The Combined Ratio included $17.7 million of non-CAT adverse prior-year development.

Life Insurance Segment

The Life Insurance segment reported an adjusted net operating income of $18.3 million for the second quarter of 2026, an improvement from $12.6 million in the second quarter of 2025. Earned premiums for Life insurance increased to $87.5 million in Q2 2026 from $84.8 million in Q2 2025, while Accident & Health earned premiums remained stable at $5.4 million. Property earned premiums slightly decreased to $9.8 million from $10.3 million. Total Life Insurance revenues were $152.4 million in Q2 2026, up from $145.5 million in Q2 2025. The Face Value of In-Force was $19,743 million, a 0.2% decrease YoY. The Average Face Value per Policy was $6,648, a 2.0% increase YoY, and the Average Premium per Policy Issued was $708, a 5.4% increase YoY. Normalized Revenues included Earned Premiums of $103 million and Net Investment Income of $49 million.

Outlook / Guidance

Kemper Corporation is implementing actions to restore target profitability and improve geographic and product diversification, aiming to reduce geographic concentration and expand in targeted markets. The company targets a medium-term expense ratio of less than 20% through cost structure improvements and process enhancements. Strategic actions in the Life segment are focused on profitable new business growth and improved persistency, supported by a new reinsurance program effective January 1, 2026, designed to align with risk appetite and improve the overall cost of capital.