KEMPER Corp (KMPR)
SIC breadcrumb: Finance, Insurance, And Real Estate > Insurance Carriers > SIC 6331 Fire, Marine & Casualty Insurance
SEC company page: https://www.sec.gov/edgar/browse/?CIK=860748. Latest filing source: 0000860748-26-000014.
Informational only. Descriptive public-record data — not a rating, forecast, or investment advice. See Disclaimer.
At a glance
- Revenue
- 4,789,700,000 USD verified
- Net income
- 143,300,000 USD verified
- Assets
- 12,472,700,000 USD verified
- Free cash flow
- 553,900,000 USD computed
- Net margin
- 2.99% computed
- Revenue YoY
- +3.26% computed
- ROE
- 5.34% computed
Peer & cluster context
Peer percentile fingerprint
Percentile = share of the N covered peers reporting that ratio whose value is lower (ties counted half); computed among grepcent-covered companies in SIC industry 6331 Fire, Marine & Casualty Insurance, not the whole market. A higher percentile means a higher value of the ratio, not a better company. Ratios with fewer than 8 reporting peers are omitted. Latest reported values per company; fiscal periods may differ. Descriptive arithmetic - not a score, rating, or ranking.
Selected Fundamentals
| Metric | Value | Unit | FY | Filed |
|---|---|---|---|---|
| Revenue | 4,789,700,000 | USD | 2025 | 2026-02-11 |
| Net income | 143,300,000 | USD | 2025 | 2026-02-11 |
| Assets | 12,472,700,000 | USD | 2025 | 2026-02-11 |
Financials
Annual standardized facts from SEC companyfacts as of latest extracted filing date 2026-02-11. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000860748.json. Derived margins, ratios, and free cash flow are computed from the extracted annual SEC facts.
| Metric | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | 2,521,900,000 | 2,723,400,000 | 3,725,100,000 | 5,039,200,000 | 5,205,700,000 | 5,718,500,000 | 5,523,900,000 | 4,944,200,000 | 4,638,600,000 | 4,789,700,000 |
| Net income | 16,800,000 | 120,900,000 | 190,100,000 | 531,100,000 | 409,900,000 | -123,700,000 | -286,600,000 | -272,100,000 | 317,800,000 | 143,300,000 |
| Diluted EPS | 0.33 | 2.33 | 3.22 | 7.96 | 6.14 | -1.92 | -4.50 | -4.25 | 4.91 | 2.29 |
| Operating cash flow | 240,500,000 | 240,600,000 | 539,200,000 | 534,300,000 | 448,000,000 | 350,700,000 | -210,300,000 | -134,200,000 | 382,900,000 | 584,500,000 |
| Capital expenditures | 35,500,000 | 65,300,000 | 84,000,000 | 53,400,000 | 57,800,000 | 30,800,000 | 53,800,000 | 53,200,000 | 30,600,000 | |
| Dividends paid | 49,500,000 | 56,400,000 | 67,800,000 | 78,900,000 | 80,600,000 | 79,700,000 | 80,100,000 | 80,100,000 | 79,600,000 | |
| Share buybacks | 3,800,000 | 0.00 | 0.00 | 0.00 | 110,400,000 | 161,700,000 | 0.00 | 0.00 | 38,900,000 | 301,900,000 |
| Assets | 8,210,500,000 | 8,376,200,000 | 11,544,900,000 | 12,989,100,000 | 14,341,900,000 | 14,916,500,000 | 13,313,600,000 | 12,742,700,000 | 12,630,400,000 | 12,472,700,000 |
| Liabilities | 6,235,300,000 | 6,260,600,000 | 8,494,800,000 | 9,016,800,000 | 9,778,500,000 | 10,908,800,000 | 10,643,000,000 | 10,237,700,000 | 9,846,100,000 | 9,803,300,000 |
| Stockholders' equity | 1,975,200,000 | 2,115,600,000 | 3,050,100,000 | 3,972,300,000 | 4,563,400,000 | -849,700,000 | 241,100,000 | 2,505,200,000 | 2,788,400,000 | 2,681,400,000 |
| Free cash flow | 205,100,000 | 473,900,000 | 450,300,000 | 394,600,000 | 292,900,000 | -241,100,000 | -188,000,000 | 329,700,000 | 553,900,000 |
Ratios
| Metric | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| Net margin | 0.67% | 4.44% | 5.10% | 10.54% | 7.87% | -2.16% | -5.19% | -5.50% | 6.85% | 2.99% |
| Return on equity | 0.85% | 5.71% | 6.23% | 13.37% | 8.98% | -118.87% | -10.86% | 11.40% | 5.34% | |
| Return on assets | 0.20% | 1.44% | 1.65% | 4.09% | 2.86% | -0.83% | -2.15% | -2.14% | 2.52% | 1.15% |
| Liabilities / equity | 3.16 | 2.96 | 2.79 | 2.27 | 2.14 | 44.14 | 4.09 | 3.53 | 3.66 |
Industry Peer Context
Net margin peer context
ROE peer context
ROA peer context
Financial Bridges
Free cash flow = operating cash flow - capital expenditures
Figure provenance: SEC companyfacts FY 2025. Operating cash flow: accession 0000860748-26-000014; concept NetCashProvidedByUsedInOperatingActivities; source concepts us-gaap:NetCashProvidedByUsedInOperatingActivities | Capital expenditures: accession 0000860748-26-000014; concept PaymentsToAcquireProductiveAssets; source concepts us-gaap:PaymentsToAcquireProductiveAssets | Free cash flow: accession 0000860748-26-000014; concept NetCashProvidedByUsedInOperatingActivities - PaymentsToAcquireProductiveAssets; source concepts us-gaap:NetCashProvidedByUsedInOperatingActivities; us-gaap:PaymentsToAcquireProductiveAssets
Financial Charts
Figure provenance: SEC companyfacts. Latest point: FY 2025 ended 2025-12-31; accession 0000860748-26-000014; filed 2026-02-11. Concept: Revenues. Source concepts: us-gaap:Revenues.
Figure provenance: SEC companyfacts. Latest point: FY 2025 ended 2025-12-31; accession 0000860748-26-000014; filed 2026-02-11. Concept: NetIncomeLoss. Source concepts: us-gaap:NetIncomeLoss.
Figure provenance: SEC companyfacts. Latest point: FY 2025 ended 2025-12-31; accession 0000860748-26-000014; filed 2026-02-11. Concept: EarningsPerShareDiluted. Source concepts: us-gaap:EarningsPerShareDiluted.
Figure provenance: SEC companyfacts. Latest point: FY 2025 ended 2025-12-31; accession 0000860748-26-000014; filed 2026-02-11. Concept: NetCashProvidedByUsedInOperatingActivities. Source concepts: us-gaap:NetCashProvidedByUsedInOperatingActivities.
Figure provenance: SEC companyfacts. Latest point: FY 2025 ended 2025-12-31; accession 0000860748-26-000014; filed 2026-02-11. Concept: PaymentsToAcquireProductiveAssets. Source concepts: us-gaap:PaymentsToAcquireProductiveAssets.
Figure provenance: SEC companyfacts. Latest point: FY 2025 ended 2025-12-31; accession 0000860748-26-000014; filed 2026-02-11. Concept: PaymentsOfDividends. Source concepts: us-gaap:PaymentsOfDividends.
Figure provenance: SEC companyfacts. Latest point: FY 2025 ended 2025-12-31; accession 0000860748-26-000014; filed 2026-02-11. Concept: PaymentsForRepurchaseOfCommonStock. Source concepts: us-gaap:PaymentsForRepurchaseOfCommonStock.
Figure provenance: SEC companyfacts. Latest point: FY 2025 ended 2025-12-31; accession 0000860748-26-000014; filed 2026-02-11. Concept: Assets. Source concepts: us-gaap:Assets.
Figure provenance: SEC companyfacts. Latest point: FY 2025 ended 2025-12-31; accession 0000860748-26-000014; filed 2026-02-11. Concept: Liabilities. Source concepts: us-gaap:Liabilities.
Figure provenance: SEC companyfacts. Latest point: FY 2025 ended 2025-12-31; accession 0000860748-26-000014; filed 2026-02-11. Concept: StockholdersEquity. Source concepts: us-gaap:StockholdersEquity.
Figure provenance: SEC companyfacts. Latest point: FY 2025 ended 2025-12-31; accession 0000860748-26-000014; filed 2026-02-11. Concept: NetCashProvidedByUsedInOperatingActivities - PaymentsToAcquireProductiveAssets. Source concepts: us-gaap:NetCashProvidedByUsedInOperatingActivities; us-gaap:PaymentsToAcquireProductiveAssets.
As-reported value updates
Quarterly
Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-08-05. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000860748.json.
| Quarter | End Date | Revenue | Net Income | Diluted EPS | Method |
|---|---|---|---|---|---|
| 2022-Q3 | 2022-09-30 | -1.19 | reported discrete quarter | ||
| 2023-Q1 | 2023-03-31 | -1.25 | reported discrete quarter | ||
| 2023-Q2 | 2023-06-30 | -1.52 | reported discrete quarter | ||
| 2023-Q3 | 2023-09-30 | 1,199,400,000 | -146,300,000 | -2.28 | reported discrete quarter |
| 2023-Q4 | 2023-12-31 | 1,187,200,000 | 51,400,000 | derived Q4 = FY annual - nine-month YTD | |
| 2024-Q1 | 2024-03-31 | 1,143,000,000 | 71,300,000 | 1.10 | reported discrete quarter |
| 2024-Q2 | 2024-06-30 | 1,129,900,000 | 75,400,000 | 1.16 | reported discrete quarter |
| 2024-Q3 | 2024-09-30 | 1,178,900,000 | 73,700,000 | 1.14 | reported discrete quarter |
| 2024-Q4 | 2024-12-31 | 1,186,800,000 | 97,400,000 | derived Q4 = FY annual - nine-month YTD | |
| 2025-Q1 | 2025-03-31 | 1,193,000,000 | 99,700,000 | 1.54 | reported discrete quarter |
| 2025-Q2 | 2025-06-30 | 1,225,600,000 | 72,600,000 | 1.12 | reported discrete quarter |
| 2025-Q3 | 2025-09-30 | 1,239,700,000 | -21,000,000 | -0.34 | reported discrete quarter |
| 2025-Q4 | 2025-12-31 | 1,131,400,000 | -8,000,000 | derived Q4 = FY annual - nine-month YTD | |
| 2026-Q1 | 2026-03-31 | 1,107,200,000 | -1,700,000 | -0.03 | reported discrete quarter |
| 2026-Q2 | 2026-06-30 | 1,092,700,000 | -464,800,000 | -7.90 | reported discrete quarter |
Quarterly Charts
Figure provenance: SEC companyfacts. Latest point: FY 2026 ended 2026-06-30; accession 0000860748-26-000084; filed 2026-08-05. Concept: Revenues. Source concepts: us-gaap:Revenues.
Figure provenance: SEC companyfacts. Latest point: FY 2026 ended 2026-06-30; accession 0000860748-26-000084; filed 2026-08-05. Concept: NetIncomeLoss. Source concepts: us-gaap:NetIncomeLoss.
Figure provenance: SEC companyfacts. Latest point: FY 2026 ended 2026-06-30; accession 0000860748-26-000084; filed 2026-08-05. Concept: EarningsPerShareDiluted. Source concepts: us-gaap:EarningsPerShareDiluted.
Business
Read KMPR's verbatim Item 1 Business section from its latest 10-K: Business.
Risk Factors
Read KMPR's verbatim Item 1A Risk Factors from its latest 10-K: Risk Factors.
Latest quarter (10-Q)
Latest 10-Q source: 0000860748-26-000084.
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
Non-GAAP Financial Measures
In this report, the Company presents certain measures of its performance on a consolidated and segment basis that are not calculated in accordance with GAAP. We believe that these non-GAAP financial measures enhance the understanding for the Company and our investors of our performance by highlighting the results of operations and the underlying profitability drivers of our business. Segment-specific financial measures are calculated using only the portion of consolidated results attributable to that specific segment.
Adjusted Consolidated Net Operating Income
The Company believes that the non-GAAP financial measure of Adjusted Consolidated Net Operating Income provides investors with a valuable measure of its ongoing performance because it reveals underlying operational performance trends that otherwise might be less apparent if the items were not excluded. The most directly comparable GAAP financial measure is Net (Loss) Income attributable to Kemper Corporation.
Adjusted Consolidated Net Operating Income is an after-tax, non-GAAP financial measure and is computed by excluding from Net (Loss) Income attributable to Kemper Corporation the after-tax impact of:
(i) Change in Fair Value of Equity and Convertible Securities;
(ii) Net Realized Investment Gains (Losses);
(iii) Impairment Losses;
(iv) Acquisition and Disposition Related Transaction, Integration, Restructuring and Other Costs;
(v) Debt Extinguishment and Other Charges;
(vi) Goodwill Impairment;
(vii) Non-Core Operations; and
(viii) Significant non-recurring or infrequent items that may not be indicative of ongoing operations
Significant non-recurring items are excluded when (a) the nature of the charge or gain is such that it is reasonably unlikely to recur within two years, and (b) there has been no similar charge or gain within the prior two years. There were no applicable significant non-recurring items that the Company excluded from the calculation of Adjusted Consolidated Net Operating Income for the three and six months ended June 30, 2026 or 2025.
Change in Fair Value of Equity and Convertible Securities, Net Realized Investment Gains (Losses) and Impairment Losses related to investments included in the Company’s results may vary significantly between periods and are generally driven by business decisions and external economic developments such as capital market conditions that impact the values of the Company’s investments, the timing of which is unrelated to the insurance underwriting process. Acquisition and Disposition Related Transaction Costs, Integration Costs, and Restructuring and Other Costs may vary significantly between periods and are generally driven by the timing of business decisions which are unrelated to the insurance underwriting process. In the second quarter of 2026, the Company completed the sale of Newins and recorded a gain in connection with the transaction. In the third quarter of 2025, a restructuring program was launched to achieve operational and organizational efficiencies. The Company will continue to evaluate additional efficiency opportunities through 2027. Debt Extinguishment and Other Charges relate to (i) loss from early extinguishment of debt, which is driven by the Company’s financing and refinancing decisions and capital needs, as well as external economic developments such as debt market conditions, the timing of which is unrelated to the insurance underwriting process; and (ii) other charges that are non-standard, not part of the ordinary course of business, and unrelated to the insurance underwriting process. Goodwill Impairments are excluded because they are infrequent and non-recurring charges. Non-Core Operations includes the results of our Preferred Insurance business which we expect to fully exit. These results are excluded because they are irrelevant to our ongoing operations and do not qualify for Discontinued Operations under GAAP. Significant non-recurring items are excluded because, by their nature, they are not indicative of the Company’s business or economic trends.
44
Non-GAAP Financial Measures (Continued)
Underlying Losses and Loss Adjustment Expenses (“LAE”) and Underlying Combined Ratio
The following discussion uses the non-GAAP financial measures of (i) Underlying Losses and LAE and (ii) Underlying Combined Ratio. Underlying Losses and LAE (also referred to in the discussion as “Current Year Non-catastrophe Losses and LAE”) exclude the impact of catastrophe losses and loss and LAE reserve development from prior years from the Company’s Incurred Losses and LAE, which is the most directly comparable GAAP financial measure.
The Underlying Combined Ratio is computed by adding the Current Year Non-catastrophe Losses and LAE Ratio with the Insurance Expense Ratio. The most directly comparable GAAP financial measure is the Combined Ratio, which is computed by adding Total Incurred Losses and LAE Ratio, including the impact of catastrophe losses and loss and LAE reserve development from prior years, with the Insurance Expense Ratio.
The Company believes Underlying Losses and LAE and the Underlying Combined Ratio are useful to investors and uses these financial measures to reveal the trends in the Company’s Property & Casualty Insurance segment that may be obscured by catastrophe losses and prior-year reserve development. These catastrophe losses may cause the Company’s loss trends to vary significantly between periods as a result of their incidence of occurrence and magnitude and can have a significant impact on incurred losses and LAE and the Combined Ratio. Prior-year reserve developments are caused by unexpected loss development on historical reserves. Because reserve development relates to the re-estimation of losses from earlier periods, it has minimal bearing on the performance of the Company’s insurance products in the current period. The Company believes it is useful for investors to evaluate these components separately and in the aggregate when reviewing the Company’s underwriting performance.
The preceding non-GAAP financial measures should not be considered a substitute for the comparable GAAP financial measures, as they do not fully recognize the overall profitability of the Company’s businesses.
Summary of Results
A reconciliation of Net (Loss) Income attributable to Kemper Corporation to Adjusted Consolidated Net Operating Income (a non-GAAP financial measure) for the three and six months ended June 30, 2026 and 2025 is presented below.
| Three Months Ended | Six Months Ended | ||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| (Dollars in Millions) | Jun 30, 2026 | Jun 30, 2025 | Change | Jun 30, 2026 | Jun 30, 2025 | Change | |||||||||||||||||
| Net (Loss) Income attributable to Kemper Corporation | $ | (464.8) | $ | 72.6 | $ | (537.4) | $ | (466.5) | $ | 172.3 | $ | (638.8) | |||||||||||
| Less: | |||||||||||||||||||||||
| Change in Fair Value of Equity and Convertible Securities | (1.4) | (0.4) | (1.0) | (2.4) | (0.3) | (2.1) | |||||||||||||||||
| Net Realized Investment Gains (Losses) | 0.5 | (0.1) | 0.6 | 0.8 | 0.6 | 0.2 | |||||||||||||||||
| Impairment Losses | (18.8) | (2.8) | (16.0) | (20.1) | (2.6) | (17.5) | |||||||||||||||||
| Acquisition and Disposition Related Transaction, Integration, Restructuring and Other Costs | (11.6) | (3.8) | (7.8) | (16.6) | (8.0) | (8.6) | |||||||||||||||||
| Debt Extinguishment and Other Charges | — | — | — | — | 0.4 | (0.4) | |||||||||||||||||
| Goodwill Impairment | (460.0) | — | (460.0) | (460.0) | — | (460.0) | |||||||||||||||||
| Non-Core Operations | 0.2 | (4.4) | 4.6 | (7.0) | (8.3) | 1.3 | |||||||||||||||||
| Adjusted Consolidated Net Operating Income | $ | 26.3 | $ | 84.1 | $ | (57.8) | $ | 38.8 | $ | 190.5 | $ | (151.7) | |||||||||||
| Components of Adjusted Consolidated Net Operating Income: | |||||||||||||||||||||||
| Segment Adjusted Net Operating Income: | |||||||||||||||||||||||
| Specialty Property & Casualty Insurance | $ | 15.8 | $ | 79.0 | $ | (63.2) | $ | 15.9 | $ | 176.9 | $ | (161.0) | |||||||||||
| Life Insurance | 18.3 | 12.6 | 5.7 | 36.3 | 29.8 | 6.5 | |||||||||||||||||
| Total Segment Adjusted Net Operating Income | 34.1 | 91.6 | (57.5) | 52.2 | 206.7 | (154.5) | |||||||||||||||||
| Corporate and Other Adjusted Net Operating Loss | (9.0) | (10.3) | 1.3 | (17.3) | (21.7) | 4.4 | |||||||||||||||||
| Less: Net Loss attributable to Noncontrolling Interest | (1.2) | (2.8) | 1.6 | (3.9) | (5.5) | 1.6 | |||||||||||||||||
| Adjusted Consolidated Net Operating Income | $ | 26.3 | $ | 84.1 | $ | (57.8) | $ | 38.8 | $ | 190.5 | $ | (151.7) |
45
Summary of Results (Continued)
Net (Loss) Income attributable to Kemper Corporation
Three Months Ended June 30, 2026 Compared to the Same Period in 2025
Net Loss attributable to Kemper Corporation was $464.8 million, or $(7.90) per unrestricted common share, for the three months ended June 30, 2026, compared to Net Income attributable to Kemper Corporation of $72.6 million, or $1.13 per unrestricted common share, for the same period in 2025. Net (Loss) Income attributable to Kemper Corporation decreased by $537.4 million due primarily to a $460.0 million goodwill impairment related to the Specialty Property & Casualty Insurance segment, lower Adjusted Consolidated Net Operating Income and higher impairment losses.
Adjusted Consolidated Net Operating Income decreased by $57.8 million for the three months ended June 30, 2026, compared to the same period in 2025, due primarily to a deterioration in Specialty Personal Automobile’s Underlying loss and LAE ratio driven by higher claim severity and frequency on bodily injury coverages in California and lower business volumes.
Income from Non-Core Operations increased by $4.6 million for the three months ended June 30, 2026 compared to the same period in 2025, primarily due to lower losses driven by the continued run-off of the business. Separately, on August 1, 2025, certain Non-Core Operations subsidiaries entered into a renewal rights agreement with a third party and certain of its affiliates (collectively, the “Third Party”) whereby the Third Party will offer replacement policies for certain policies written by these subsidiaries in New York in accordance with the state’s non-renewal rules. During the second quarter of 2026, these subsidiaries and the Third Party began execution of the agreement, based on having received regulatory approval from the New York Department of Financial Services during the first quarter of 2026.
Corporate and Other Adjusted Net Operating Loss decreased by $1.3 million for the three months ended June 30, 2026 compared to the same period in 2025, primarily driven by higher net investment income.
Six Months Ended June 30, 2026 Compared to the Same Period in 2025
Net Loss attributable to Kemper Corporation was $466.5 million, or $(7.93) per unrestricted common share, for the six months ended June 30, 2026, compared to Net Income attributable to Kemper Corporation of $172.3 million, or $2.69 per unrestricted common share, for the same period in 2025. Net (Loss) Income attributable to Kemper Corporation decreased by $638.8 million due primarily to a $460.0 million goodwill impairment related to the Specialty Property & Casualty Insurance segment, lower Adjusted Consolidated Net Operating Income and higher impairment losses.
Adjusted Consolidated Net Operating Income decreased by $151.7 million for the six months ended June 30, 2026, compared to the same period in 2025, due primarily to a deterioration in Specialty Personal Automobile’s Underlying loss and LAE ratio driven by higher claim severity and fr
[Excerpt truncated for page length; source filing is linked above.]
Latest 10-K MD&A (excerpt)
Latest 10-K Item 7 source: 0000860748-26-000014. The complete FY 2025 MD&A is published at /company/KMPR/mda/fy2025/.
Management’s Discussion and Analysis of
Financial Condition and Results of Operations
| Non-GAAP Financial Measures | 31 |
|---|---|
| Summary of Results | 32 |
| Catastrophes | 34 |
| Loss and LAE Reserve Development | 35 |
| Specialty Property & Casualty Insurance | 37 |
| Life Insurance | 42 |
| Investment Results | 43 |
| Investment Quality and Concentrations | 45 |
| Investments in Limited Liability Companies and Limited Partnerships | 48 |
| Insurance, Interest and Other Expenses | 49 |
| Income Taxes | 50 |
| Liquidity and Capital Resources | 50 |
| Contractual Obligations | 53 |
| Critical Accounting Estimates | 55 |
| Recently Issued Accounting Pronouncements | 61 |
30
NON-GAAP FINANCIAL MEASURES
Pursuant to the rules and regulations of the SEC, the Company is required to file consolidated financial statements prepared in accordance with the accounting principles generally accepted in the United States (“GAAP”). The Company is permitted to include non-GAAP financial measures in its filings provided that they are defined along with an explanation of their usefulness to investors, are no more prominent than the comparable GAAP financial measures and are reconciled to such GAAP financial measures.
In this report, the Company presents certain measures of its performance on a consolidated and segment basis that are not calculated in accordance with GAAP. We believe that these non-GAAP financial measures enhance the understanding for the Company and our investors of our performance by highlighting the results of operations and the underlying profitability drivers of our business. Segment-specific financial measures are calculated using only the portion of consolidated results attributable to that specific segment.
These non-GAAP financial measures should not be considered a substitute for the comparable GAAP financial measures, as they do not fully recognize the overall profitability of the Company’s businesses.
Adjusted Consolidated Net Operating Income (Loss)
The Company believes that the non-GAAP financial measure of Adjusted Consolidated Net Operating Income (Loss) provides investors with a valuable measure of its ongoing performance because it reveals underlying operational performance trends that otherwise might be less apparent if the items were not excluded. The most directly comparable GAAP financial measure is Net Income (Loss) attributable to Kemper Corporation.
Adjusted Consolidated Net Operating Income (Loss) is an after-tax, non-GAAP financial measure and is computed by excluding from Net Income (Loss) attributable to Kemper Corporation the after-tax impact of:
(i) Change in Fair Value of Equity and Convertible Securities;
(ii) Net Realized Investment Gains (Losses);
(iii) Impairment Losses;
(iv) Acquisition and Disposition Related Transaction, Integration, Restructuring and Other Costs;
(v) Debt Extinguishment, Pension Settlement and Other Charges;
(vi) Goodwill Impairment Charges;
(vii) Non-Core Operations; and
(viii) Significant non-recurring or infrequent items that may not be indicative of ongoing operations
Significant non-recurring items are excluded when (a) the nature of the charge or gain is such that it is reasonably unlikely to recur within two years, and (b) there has been no similar charge or gain within the prior two years. There were no applicable significant non-recurring items that the Company excluded from the calculation of Adjusted Consolidated Net Operating Income (Loss) for the years ended December 31, 2025, 2024 or 2023.
Change in Fair Value of Equity and Convertible Securities, Net Realized Investment Gains (Losses) and Impairment Losses related to investments included in the Company’s results may vary significantly between periods and are generally driven by business decisions and external economic developments such as capital market conditions that impact the values of the Company’s investments, the timing of which is unrelated to the insurance underwriting process. Acquisition and Disposition Related Transaction Costs, Integration Costs, and Restructuring and Other Costs may vary significantly between periods and are generally driven by the timing of acquisitions and business decisions which are unrelated to the insurance underwriting process. In the third quarter of 2025, a restructuring program was launched to achieve operational and organizational efficiencies. The Company will continue to evaluate additional efficiency opportunities through 2027. Debt Extinguishment, Pension Settlement and Other Charges relate to (i) loss from early extinguishment of debt, which is driven by the Company’s financing and refinancing decisions and capital needs, as well as external economic developments such as debt market conditions, the timing of which is unrelated to the insurance underwriting process; (ii) settlement of pension plan obligations which are business decisions made by the Company, the timing of which is unrelated to the underwriting process; and (iii) other charges that are non-standard, not part of the ordinary course of business, and unrelated to the insurance underwriting process.
31
NON-GAAP FINANCIAL MEASURES (Continued)
Goodwill Impairment Charges are excluded because they are infrequent and non-recurring charges. Non-Core Operations includes the results of our Preferred Insurance business which we expect to fully exit. These results are excluded because they are irrelevant to our ongoing operations and do not qualify for Discontinued Operations under GAAP. Significant non-recurring items are excluded because, by their nature, they are not indicative of the Company’s business or economic trends.
Underlying Losses and Loss Adjustment Expense (“LAE”) and Underlying Combined Ratio
The following discussion of segment results uses the non-GAAP financial measures of (i) Underlying Losses and LAE and (ii) Underlying Combined Ratio. Underlying Losses and LAE (also referred to in the discussion as “Current Year Non-catastrophe Losses and LAE”) exclude the impact of catastrophe losses and loss and LAE reserve development from prior years from the Company’s Incurred Losses and LAE, which is the most directly comparable GAAP financial measure.
The Underlying Combined Ratio is computed by adding the Current Year Non-catastrophe Losses and LAE Ratio with the Insurance Expense Ratio. The most directly comparable GAAP financial measure is the Combined Ratio, which is computed by adding Total Incurred Losses and LAE Ratio, including the impact of catastrophe losses and loss and LAE reserve development from prior years, with the Insurance Expense Ratio.
The Company believes Underlying Losses and LAE and the Underlying Combined Ratio are useful to investors and uses these financial measures to reveal the trends in the Company’s Property & Casualty Insurance segment that may be obscured by catastrophe losses and prior-year reserve development. These catastrophe losses may cause the Company’s loss trends to vary significantly between periods as a result of their incidence of occurrence and magnitude and can have a significant impact on incurred losses and LAE and the Combined Ratio. Prior-year reserve developments are caused by unexpected loss development on historical reserves. Because reserve development relates to the re-estimation of losses from earlier periods, it has minimal bearing on the performance of the Company’s insurance products in the current period. The Company believes it is useful for investors to evaluate these components separately and in the aggregate when reviewing the Company’s underwriting performance.
The preceding non-GAAP financial measures should not be considered a substitute for the comparable GAAP financial measures, as they do not fully recognize the overall profitability of the Company’s businesses.
SUMMARY OF RESULTS
Net Income attributable to Kemper Corporation was $143.3 million ($2.31 per unrestricted common share) for the year ended December 31, 2025, compared to Net Income attributable to Kemper Corporation of $317.8 million ($4.95 per unrestricted common share) for the year ended December 31, 2024.
32
Kemper Corporation and Subsidiaries
Management’s Discussion and Analysis of Financial Condition and Results of Operations—(Continued)
SUMMARY OF RESULTS (Continued)
A reconciliation of Net Income (Loss) attributable to Kemper Corporation to Adjusted Consolidated Net Operating Income (Loss) (a non-GAAP financial measure) for the years ended December 31, 2025, 2024 and 2023 is presented below.
| DOLLARS IN MILLIONS | 2025 | 2024 | Changefrom 2024to 2025 | 2023 | Change from 2023to 2024 | ||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net Income (Loss) attributable to Kemper Corporation | $ | 143.3 | $ | 317.8 | $ | (174.5) | $ | (272.1) | $ | 589.9 | |||||||||
| Less: | |||||||||||||||||||
| Change in Fair Value of Equity and Convertible Securities | $ | (3.4) | $ | (2.1) | $ | (1.3) | $ | 3.7 | $ | (5.8) | |||||||||
| Net Realized Investment Gains (Losses) | 4.3 | 10.4 | (6.1) | (14.7) | 25.1 | ||||||||||||||
| Impairment Losses | (8.5) | (4.6) | (3.9) | (0.9) | (3.7) | ||||||||||||||
| Acquisition and Disposition Related Transaction, Integration, Restructuring and Other Costs | (43.1) | (31.8) | (11.3) | (95.0) | 63.2 | ||||||||||||||
| Debt Extinguishment, Pension Settlement and OtherCharges | 0.4 | (7.4) | 7.8 | (55.5) | 48.1 | ||||||||||||||
| Goodwill Impairment Charge | — | — | — | (45.5) | 45.5 | ||||||||||||||
| Non-Core Operations | (31.9) | (28.2) | (3.7) | (17.0) | (11.2) | ||||||||||||||
| Adjusted Consolidated Net Operating Income (Loss) | $ | 225.5 | $ | 381.5 | $ | (156.0) | $ | (47.2) | $ | 428.7 | |||||||||
| Components of Adjusted Consolidated Net Operating Income: | |||||||||||||||||||
| Segment Adjusted Net Operating Income: | |||||||||||||||||||
| Specialty Property & Casualty Insurance | $ | 187.1 | $ | 376.3 | $ | (189.2) | $ | (57.1) | $ | 433.4 | |||||||||
| Life Insurance | 68.5 | 50.2 | 18.3 | 51.8 | (1.6) | ||||||||||||||
| Total Segment Adjusted Net Operating Income | 255.6 | 426.5 | (170.9) | (5.3) | 431.8 | ||||||||||||||
| Corporate and Other Adjusted Net Operating Loss | (40.8) | (50.3) | 9.5 | (42.1) | (8.2) | ||||||||||||||
| Less: Net Loss attributable to Noncontrolling Interest | (10.7) | (5.3) | (5.4) | (0.2) | (5.1) | ||||||||||||||
| Adjusted Consolidated Net Operating Income | $ | 225.5 | $ | 381.5 | $ | (156.0) | $ | (47.2) | $ | 428.7 |
Net Income (Loss) attributable to Kemper Corporation
2025 Compared with 2024
Net Income (Loss) attributable to Kemper Corporation decreased by $174.5 million in 2025, compared to 2024, due primarily to lower Adjusted Consolidated Net Operating Income.
Adjusted Consolidated Net Operating Income (Loss) decreased by $156.0 million in 2025, compared to 2024, due primarily to a deterioration in the Specialty Property & Casualty Insurance segment’s Underlying Combined Ratio and higher adverse prior year development on bodily injury coverages within commercial automobile insurance, partially offset by higher average earned premiums per exposure resulting from rate increases. This was partially offset by increased Life Insurance segment earnings driven by higher net investment income and a reduction in insurance expenses. Life Insurance segment results for the year December 31, 2024 included an $11.9 million after-tax loss from an investment valuation adjustment on one real estate investment from our alternative investment portfolio.
The loss from Non-Core Operations increased by $3.7 million in 2025, compared to 2024, primarily due to reduced net investment income and earned premiums outpacing reduced expenses as the business continues to run off. Additionally, the Company recognized $21.
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MD&A history
Prior-year 10-K MD&A spans are extracted from SEC filings with the same bounded parser used for the latest filing. Each year's full verbatim text is on its own sub-page.