| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 94 | — | 17.3x | Top tier | |
Growth | 7 | -4.5% | 7.1% | Bottom tier | |
Quality | 15 | — | — | Bottom tier | |
Safety | 25 | — | — | Bottom tier | |
Capital Return | 93 | 4.33% | 0.06% | Top tier | |
Momentum | 30 | -48.2% | -1.6% | Bottom tier | |
Sentiment | 90 | 4 | 3 | Top tier |
10-year US Treasury yield 4.96% as of 2026-10-22. Estimates computed from company data and analyst targets, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Kemper Corporation is an insurance group combining specialty auto insurance and life insurance, generating revenue from policy premiums alongside returns from its investment portfolio. The Specialty Auto segment includes personal and commercial auto insurance, while the Life business provides earnings diversification and stable cash flows; net investment income reached $105 million in Q2 FY 2026, and cash flow for the twelve months ended that quarter reached $434 million.
In Q2 FY 2026, revenue totaled $1.1 billion, but the company recorded a net loss of $464.8 million and a loss per share of $7.90. This loss primarily reflects a $460 million non-cash impairment of goodwill in the Specialty Auto segment, in addition to a $16.6 million after-tax credit loss provision related to Kemper Reciprocal Exchange surplus notes; meanwhile, adjusted consolidated net operating income was $26.3 million, or $0.45 per share.
The Specialty Auto segment's adjusted underlying combined ratio improved sequentially by 0.8 points to 102.0% in Q2 FY 2026. The ratio was 105.2% in Personal Auto, indicating continued underwriting losses, versus 93.7% in Commercial Auto, while the Life business generated net operating income of $18 million and earned premiums of $103 million. For comparison, Kemper generated revenue of $4.8 billion, net income of $143.3 million, and earnings per share of $2.29 in FY 2025.
Automated analysis for informational purposes only — not investment advice.
The average analyst price target is $35.5, within a wide range of $28 to $43, with a consensus rating of “Buy”; the average is approximately 56% above the 52-week range low of $22.69, but approximately 35% below its high of $54.64. A P/E ratio is not available in the data, and the valuation remains difficult to interpret because of the Q2 FY 2026 loss and the $460 million non-cash goodwill impairment, despite generating $41.9 million in net income and approximately $0.71 in earnings per share over the twelve-month period.
Figures in the text are as of 2026-09-01; the live price is shown at the top of the page.
Kemper recorded a net loss of $464.8 million, or $7.90 per share, in Q2 FY 2026. The largest cause was a $460 million non-cash impairment of goodwill in the Specialty Auto segment, following a quantitative assessment triggered by the decline in market value and operational challenges. The company also recorded a $16.6 million after-tax credit loss provision related to Kemper Reciprocal Exchange surplus notes. Meanwhile, adjusted consolidated net operating income was $26.3 million, or $0.45 per share.
The adjusted underlying combined ratio for Personal Auto improved sequentially by 1.3 points to 105.2% in Q2 FY 2026, but it remained above 100% and did not achieve the target return. Kemper reduced California's share of the portfolio by 2.5 percentage points, alongside a sequential 10% decline in policies in force in the state. An average rate increase of approximately 5.5% across the state's two programs began taking effect during that quarter, and the company filed for another 6.9% increase. Management believes achieving profitability in California requires a double-digit rate increase alongside expense reductions and non-rate actions.
The underlying combined ratio for Commercial Auto was 93.7% in Q2 FY 2026, and policies in force increased 9.2% year over year. Nevertheless, the business recorded $17.7 million of unfavorable prior-year reserve development after several consecutive quarters of reserve strengthening. The business has approximately $1 billion in reserves, 90% of which is related to bodily injury, while California represents approximately 45% of the portfolio. The company therefore intends to raise rates and tighten underwriting, accepting slower policy growth to maintain more sustainable profitability.
The Life business generated net operating income of $18 million in Q2 FY 2026. Earned premiums totaled $103 million, and the average premium per policy increased 5.4% compared with the corresponding period of FY 2025. The company attributed the performance to premium growth, favorable mortality and policy lapse experience, and higher net investment income. This business provides diversification and stable cash flows while the company works to repair Personal Auto profitability.
Kemper ended Q2 FY 2026 with $766 million of liquidity at the holding company level and said its insurance subsidiaries remained well capitalized. Net investment income was $105 million, and twelve-month cash flow reached $434 million. The debt-to-capital ratio increased to 28.3%, but management attributed this primarily to the non-cash goodwill impairment. The company confirmed that the $460 million impairment does not affect statutory capital, liquidity, or compliance with debt covenants and credit facilities.
The average analyst price target is $35.5, with a high target of $43 and a low target of $28, and a consensus rating of “Buy.” The average target lies between the low and high of the 52-week range of $22.69 and $54.64, reflecting a meaningful gap between analyst estimates and the stock's historical boundaries. Through August 13, 2026, three-month data showed five insider purchases and no sales, totaling net purchases of 367,880 shares. These purchases represent a supportive signal, but they do not eliminate the risks of Personal Auto losses, Commercial Auto reserve strengthening, or an additional goodwill impairment.