Kemper Q4 revenue beats expectations

Overview

• Specialized insurer's Q4 revenue beat analyst expectations

• Adjusted net operating income fell significantly from Q4 2024

• Specialty P&C segment pressured by higher claim severity and Florida refund

Outlook

• Kemper focuses on improving profitability through pricing and claims adjustments

• Company aims to reduce volatility and enhance long-term value creation

• Kemper is diversifying its portfolio geographically to improve consistency

Result Drivers

• SPECIALTY P&C PRESSURE - Specialty Property & Casualty segment faced pressure from higher claim severity and a $35 mln Florida Statutory Profit Limit Refund

• LIFE INSURANCE RESULTS - Life Insurance segment delivered solid results due to effective expense management

• STRATEGIC ACTIONS - Co is focusing on improving pricing, claims, and expenses, and diversifying its portfolio geographically

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 3 "strong buy" or "buy", 1 "hold" and 2 "sell" or "strong sell"

• The average consensus recommendation for the property & casualty insurance peer group is "buy."

• Wall Street's median 12-month price target for Kemper Corp is $60.00, about 57.5% above its February 3 closing price of $38.09

• The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 8 three months ago

Press Release: ID:nBw7nmvPSa

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.