Kemper (KMPR) investor relations material

Executive summary

• Reported a net loss of $21 million for Q3 2025, down from net income of $73.7 million in Q3 2024, with diluted EPS at $(0.34) versus $1.14 year-over-year.

• Results were impacted by intensified competition, elevated claim severity, and adverse prior year development in Specialty P&C, partially offset by higher earned premiums and improved Life Insurance performance.

• Leadership changes and a restructuring initiative were implemented to improve execution, accountability, and operational effectiveness, with expected annualized savings of $30 million.

• The company remains committed to operational discipline, profitable growth, and ongoing evaluation of additional cost-saving opportunities through 2027.

• Significant capital actions included a $150 million accelerated share repurchase and additional open market buybacks.

Financial highlights

• Net loss attributable to shareholders was $21 million ($0.34 per diluted share) for Q3 2025; adjusted consolidated net operating income was $20.4 million ($0.33 per diluted share).

• Total revenues for Q3 2025 were $1,239.7 million, up from $1,178.9 million in Q3 2024, driven by higher earned premiums in Specialty P&C.

• Net investment income was $104.8 million, down from $111.1 million year-over-year.

• Book value per share increased 4.8% year-over-year to $45.38; adjusted book value per share was $28.55.

• Operating cash flow for the trailing 12 months was $585 million, near an all-time high.

Outlook and guidance

• Management is implementing restructuring and cost-saving initiatives to enhance execution, improve profitability, and position for growth, with further efficiency opportunities to be evaluated through 2027.

• Modest TIF (total in-force policies) decline of 1–3% expected from Q3 to Q4 due to seasonality, with growth resuming in Q1.

• Growth in 2026 will depend on the competitive environment, with a focus on profitable expansion.