Revenue contracted 11% year-over-year in 2026Q2, and the combined ratio deteriorated to 102.7% in 2025Q3, reflecting underwriting losses.
Kemper Corporation 5.875% Fixed (KMPB) annual income statement — 30-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Revenue | 4.57B | 4.8B | 4.63B | 4.95B | 5.45B | 5.61B | 5.18B | 5.02B | 3.69B | 2.67B | 2.52B | 2.34B | 2.2B | 2.43B | 2.46B | 2.5B | 2.64B | 2.93B | 2.74B | 2.9B | 2.86B | 2.83B | 2.82B | 2.67B | 2.3B | 2.53B | 1.95B | 1.81B | 2.09B | 1.56B | 1.57B |
| Revenue Growth % | -4.13% | 3.62% | -6.32% | -9.27% | -2.92% | 8.42% | 3.16% | 36.13% | 38.17% | 5.83% | 7.74% | 6.56% | -9.47% | -1.45% | -1.31% | -5.58% | -9.92% | 6.97% | -5.54% | 1.6% | 0.99% | 0.36% | 5.62% | 16.14% | -9.3% | 29.73% | 7.7% | -13.05% | 34.12% | -1.17% | 5.44% |
| Medical Costs & Claims | 2.92B | 3.38B | 4.04B | 3.82B | 5.66B | 5.26B | 4.02B | 3.83B | 2.92B | 2.23B | 2.16B | 1.83B | 1.59B | 1.7B | 1.94B | 2B | 1.65B | 1.74B | 1.77B | 2.28B | 2.22B | 2.29B | 2.49B | 2.58B | 2.16B | 1.84B | 1.65B | 1.46B | 1.29B | 1.26B | 1.29B |
| Medical Cost Ratio % | 63.84% | 70.32% | 87.28% | 77.25% | 103.88% | 93.68% | 77.58% | 76.3% | 79.2% | 83.54% | 85.82% | 78.07% | 72.2% | 70.2% | 78.74% | 80.22% | 62.33% | 59.3% | 64.37% | 78.47% | 77.72% | 80.77% | 88.4% | 96.85% | 94.12% | 72.69% | 84.43% | 80.65% | 61.82% | 81.05% | 81.71% |
| Gross Profit | 1.65B | 1.43B | 589.4M | 1.13B | -211.3M | 354.8M | 1.16B | 1.19B | 766.9M | 439.2M | 357.5M | 513.4M | 610.7M | 723.1M | 523.5M | 493.6M | 995.3M | 1.19B | 977M | 624.9M | 636.5M | 544M | 326.9M | 84.2M | 135.2M | 691.9M | 304.1M | 350.9M | 796.4M | 294.8M | 287.8M |
| Gross Margin % | 36.16% | 29.68% | 12.72% | 22.75% | -3.88% | 6.32% | 22.42% | 23.7% | 20.8% | 16.46% | 14.18% | 21.93% | 27.8% | 29.8% | 21.26% | 19.78% | 37.67% | 40.7% | 35.63% | 21.53% | 22.28% | 19.23% | 11.6% | 3.15% | 5.88% | 27.31% | 15.57% | 19.35% | 38.18% | 18.95% | 18.29% |
| Gross Profit Growth % | - | 141.77% | -47.62% | 632.56% | -159.55% | -69.44% | -2.45% | 55.17% | 74.61% | 22.85% | -30.37% | -15.93% | -15.54% | 38.13% | 6.06% | -50.41% | -16.63% | 22.2% | 56.34% | -1.82% | 17% | 66.41% | 288.24% | -37.72% | -80.46% | 127.52% | -13.34% | -55.94% | 170.15% | 2.43% | -80.72% |
| Operating Expenses | 2.18B | 1.26B | 200.9M | 1.47B | 159.7M | 604.2M | 650.8M | 528.4M | 567.8M | 278.1M | 354M | 413.1M | 450.5M | 408.7M | 401.1M | 425.3M | 758.6M | 964.3M | 1.07B | 398.1M | 266.5M | 232.4M | 213.1M | 199.9M | 159.8M | 149.4M | -1.5B | 113.9M | 109.3M | -1.13B | -1.17B |
| OpEx / Revenue % | 47.56% | 26.34% | 4.34% | 29.77% | 2.93% | 10.76% | 12.57% | 10.53% | 15.4% | 10.42% | 14.04% | 17.65% | 20.51% | 16.84% | 16.29% | 17.05% | 28.71% | 32.87% | 38.91% | 13.71% | 9.33% | 8.21% | 7.56% | 7.49% | 6.95% | 5.9% | -76.65% | 6.28% | 5.24% | -72.7% | -74.4% |
| Depreciation & Amortization | 83.6M | 74.3M | 53.7M | 58.6M | 70.9M | 99.8M | 55M | 62.5M | 171.9M | 18.2M | 19.5M | 28.9M | 23.2M | 25.7M | 23.3M | 22.3M | 25.5M | 344.3M | 353.5M | 357.4M | 364.8M | 11.6M | 12.6M | 11.4M | 245.6M | 189.6M | 12.1M | 163.1M | 149.3M | 167.4M | 170.1M |
| Combined Ratio % | 111.4% | 96.65% | 91.61% | 107.02% | 106.81% | 104.44% | 90.15% | 86.82% | 94.6% | 93.96% | 99.86% | 95.72% | 92.71% | 87.04% | 95.03% | 97.26% | 91.04% | 92.17% | 103.28% | 92.19% | 87.05% | 88.99% | 95.96% | 104.33% | 101.07% | 78.59% | 7.78% | 86.93% | 67.06% | 8.35% | 7.31% |
| Operating Income | -521.5M | 160.7M | 388.5M | -347.1M | -371M | -249.4M | 510.1M | 661.6M | 199.1M | 161.1M | 3.5M | 100.3M | 160.2M | 314.4M | 122.4M | 68.3M | 236.7M | 229.6M | -90M | 226.8M | 370M | 311.6M | 113.8M | -115.7M | -24.6M | 542.5M | 1.8B | 237M | 687.1M | 1.43B | 1.46B |
| Operating Margin % | -11.4% | 3.35% | 8.39% | -7.02% | -6.81% | -4.44% | 9.85% | 13.18% | 5.4% | 6.04% | 0.14% | 4.28% | 7.29% | 12.96% | 4.97% | 2.74% | 8.96% | 7.83% | -3.28% | 7.81% | 12.95% | 11.01% | 4.04% | -4.33% | -1.07% | 21.41% | 92.22% | 13.07% | 32.94% | 91.65% | 92.69% |
| Operating Income Growth % | - | -58.64% | 211.93% | 6.44% | -48.76% | -148.89% | -22.9% | 232.3% | 23.59% | 4502.86% | -96.51% | -37.39% | -49.05% | 156.86% | 79.21% | -71.14% | 3.09% | 355.11% | -139.68% | -38.7% | 18.74% | 173.81% | 198.36% | -370.33% | -104.53% | -69.88% | 660.04% | -65.51% | -51.8% | -2.27% | 5.56% |
| EBITDA | -437.9M | 235M | 442.2M | -288.5M | -300.1M | -149.6M | 565.1M | 724.1M | 371M | 179.3M | 23M | 129.2M | 183.4M | 340.1M | 145.7M | 90.6M | 262.2M | 573.9M | 263.5M | 584.2M | 734.8M | 323.2M | 126.4M | -104.3M | 221M | 732.1M | 1.81B | 400.1M | 836.4M | 1.59B | 1.63B |
| EBITDA Margin % | -9.58% | 4.9% | 9.55% | -5.83% | -5.51% | -2.66% | 10.91% | 14.42% | 10.06% | 6.72% | 0.91% | 5.52% | 8.35% | 14.02% | 5.92% | 3.63% | 9.92% | 19.56% | 9.61% | 20.12% | 25.72% | 11.42% | 4.48% | -3.91% | 9.62% | 28.89% | 92.84% | 22.06% | 40.1% | 102.42% | 103.49% |
| Interest Expense | 36.3M | 38.5M | 56.9M | 56.1M | 54.7M | 43.6M | 36M | 42.5M | 43.4M | 34.9M | 44.4M | 46.5M | 46.9M | 38.1M | 37.6M | 36.9M | 68.3M | 241.6M | 321.3M | 398.1M | 62.5M | 64M | 57.4M | 45.3M | 26.9M | 22.2M | 151.9M | 113.9M | 109.3M | 129.8M | 115.1M |
| Non-Operating Income | 2.2M | -38.5M | -56.9M | -56.1M | -54.7M | -43.7M | -36M | -42.5M | -43.4M | -34.9M | -44.4M | -46.5M | -46.9M | -38.1M | -37.6M | -36.9M | -68.3M | -241.6M | -321.3M | -398.1M | -62.5M | -64M | -279.1M | -319.9M | -26.9M | -22.2M | 1.65B | -113.9M | -109.3M | 1.3B | 1.34B |
| Pretax Income | -521.5M | 160.7M | 388.5M | -347.1M | -371M | -249.3M | 510.1M | 661.6M | 199.1M | 161.1M | 3.5M | 100.3M | 160.2M | 314.4M | 122.4M | 68.3M | 236.7M | 229.6M | -90M | 226.8M | 370M | 311.6M | 335.5M | 158.9M | -24.6M | 542.5M | 145.4M | 237M | 687.1M | 165M | 172.7M |
| Pretax Margin % | -11.4% | 3.35% | 8.39% | -7.02% | -6.81% | -4.44% | 9.85% | 13.18% | 5.4% | 6.04% | 0.14% | 4.28% | 7.29% | 12.96% | 4.97% | 2.74% | 8.96% | 7.83% | -3.28% | 7.81% | 12.95% | 11.01% | 11.9% | 5.95% | -1.07% | 21.41% | 7.44% | 13.07% | 32.94% | 10.61% | 10.97% |
| Income Tax | -16.9M | 28.1M | 76M | -74.8M | -84.4M | -125.6M | 100.2M | 130.5M | 10.7M | 41.2M | -9.2M | 20.1M | 47.6M | 99.9M | 30.6M | 6.6M | 67.5M | 66.4M | -46.2M | 49.9M | 115M | 80.2M | 98.9M | 34.1M | -18.3M | 190.3M | 54.4M | 77.9M | 238.6M | 47.1M | 40.2M |
| Effective Tax Rate % | 3.24% | 17.49% | 19.56% | 21.55% | 22.75% | 50.38% | 19.64% | 19.72% | 5.37% | 25.57% | -262.86% | 20.04% | 29.71% | 31.77% | 25% | 9.66% | 28.52% | 28.92% | 51.33% | 22% | 31.08% | 25.74% | 29.48% | 21.46% | 74.39% | 35.08% | 37.41% | 32.87% | 34.73% | 28.55% | 23.28% |
| Net Income | -495.5M | 143.3M | 317.8M | -272.1M | -286.6M | -123.7M | 409.9M | 531.1M | 190.1M | 120.9M | 16.8M | 85.7M | 114.5M | 217.7M | 103.4M | 74.5M | 184.6M | 164.7M | -29.6M | 205.4M | 283.1M | 255.5M | 240.2M | 123.6M | -8.2M | 380.9M | 91M | 201M | 510.8M | 117.9M | 132.5M |
| Net Margin % | -10.83% | 2.99% | 6.86% | -5.5% | -5.26% | -2.2% | 7.92% | 10.58% | 5.15% | 4.53% | 0.67% | 3.66% | 5.21% | 8.97% | 4.2% | 2.99% | 6.99% | 5.61% | -1.08% | 7.08% | 9.91% | 9.03% | 8.52% | 4.63% | -0.36% | 15.03% | 4.66% | 11.08% | 24.49% | 7.58% | 8.42% |
| Net Income Growth % | -244.29% | -54.91% | 216.8% | 5.06% | -131.69% | -130.18% | -22.82% | 179.38% | 57.24% | 619.64% | -80.4% | -25.15% | -47.4% | 110.54% | 38.79% | -59.64% | 12.08% | 656.42% | -114.41% | -27.45% | 10.8% | 6.37% | 94.34% | 1607.32% | -102.15% | 318.57% | -54.73% | -60.65% | 333.25% | -11.02% | -12.02% |
| EPS (Diluted) | -8.42 | 2.29 | 4.91 | -4.25 | -4.49 | -1.88 | 6.14 | 7.96 | 3.24 | 2.33 | 0.33 | 1.65 | 2.12 | 3.80 | 1.74 | 1.38 | 2.98 | 2.64 | -0.47 | 3.12 | 4.15 | 3.67 | 3.48 | 1.82 | -0.12 | 5.60 | 1.32 | 2.74 | 6.51 | 1.56 | 1.74 |
| EPS Growth % | -258.36% | -53.36% | 215.53% | 5.35% | -138.83% | -130.62% | -22.86% | 145.68% | 39.06% | 606.06% | -80% | -22.17% | -44.21% | 118.39% | 26.09% | -53.69% | 12.88% | 661.7% | -115.06% | -24.82% | 13.08% | 5.46% | 91.21% | 1616.67% | -102.14% | 324.24% | -51.82% | -57.91% | 317.31% | -10.34% | -5.95% |
| EPS (Basic) | - | 2.31 | 4.95 | -4.25 | -4.49 | -1.88 | 6.24 | 8.04 | 3.27 | 2.34 | 0.33 | 1.65 | 2.12 | 3.81 | 1.75 | 1.38 | 2.98 | 2.64 | -0.47 | 3.13 | 4.17 | 3.70 | 3.51 | 1.83 | -0.12 | 5.64 | 1.32 | 2.76 | 6.55 | 1.58 | 1.76 |
| Diluted Shares Outstanding | 58.87M | 62.61M | 64.78M | 64.03M | 63.83M | 64.26M | 66.73M | 66.55M | 58.75M | 51.58M | 51.21M | 51.68M | 53.87M | 56.98M | 59.43M | 60.26M | 61.77M | 62.16M | 62.68M | 65.83M | 68.22M | 69.62M | 69.02M | 67.91M | 68.33M | 68.02M | 68.94M | 73.36M | 78.46M | 75.58M | 76.15M |
Quick answers to the most common questions about buying KMPB stock.
For fiscal year 2025, Kemper Corporation 5.875% Fixed (KMPB) reported total revenue of $4.80B. This represents a 205.0% increase compared to $1.57B in 1996.
Kemper Corporation 5.875% Fixed (KMPB) is profitable, generating $143.3M in net income for the fiscal year ending 2025 with a net profit margin of 3.0%.
Kemper Corporation 5.875% Fixed (KMPB) reported an operating income of $160.7M, resulting in an operating profit margin of 3.3%. This margin reflects the operational efficiency of the business before interest and taxes.
Kemper Corporation 5.875% Fixed (KMPB) generated $1.43B in gross profit for the year, representing a gross profit margin of 29.7%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Underwriting losses and reserve adequacy
Metrics are mathematically derived from official filings.
Premium Growth Stalls Amidst Rate Hikes
Kemper's revenue contracted 11% year-over-year in 2026Q2, per the latest income statement, with sequential declines suggesting a softening market or portfolio pruning.
Revenue fell from $1.2B in 2025Q3 to $1.1B by 2026Q2, a 5.7% sequential drop, and year-over-year growth turned negative at -11.0% in 2026Q2. This deceleration follows a period of modest growth in 2025, indicating that Kemper may be shedding unprofitable policies or facing competitive pressures. The sustained revenue decline, if it continues, could signal a shrinking underwriting base, which would pressure future earnings.
Combined Ratio Deteriorates Sharply
Kemper's combined ratio spiked to 102.7% in 2025Q3, as reported in financial statements, indicating underwriting losses that reversed prior profitability.
After a profitable 2024 with combined ratios around 92%, Kemper's combined ratio deteriorated to 100.7% in 2026Q1 and 101.2% in 2025Q4, with 2025Q3 hitting 102.7%. This suggests that loss costs are outpacing earned premiums, possibly due to higher catastrophe losses or adverse reserve development. The trend implies that underwriting is no longer contributing to earnings, and the company is relying on investment income to offset these losses.
Reserve Releases Mask Underlying Deterioration
Despite reported combined ratios above 100% in recent quarters, prior-year reserve releases may have artificially supported earnings, as suggested by the gap between loss and combined ratios.
In 2024Q4, the loss ratio was 114.8% but the combined ratio was 89.9%, implying a negative expense ratio or significant reserve releases. This indicates that favorable prior-year development was inflating underwriting results. As those releases fade, the underlying loss ratio appears to be worsening, with 2025Q3 showing a 100% loss ratio. Investors should monitor reserve adequacy, as future adverse development could further strain earnings.
Investment Income Not Disclosed, Earnings Volatile
Investment income is not separately reported in the provided data, but net income swung from $99.7M in 2025Q1 to -$464.8M in 2026Q2, indicating significant non-operating volatility.
The absence of investment income figures limits analysis, but the dramatic swing in net income—from positive $72.6M in 2025Q2 to a loss of $464.8M in 2026Q2—suggests that investment losses or impairments may be driving the downturn. Given the fixed-rate nature of the preferred stock (KMPB), the company's investment portfolio yield is critical to covering dividend obligations. The lack of disclosure warrants further investigation into the composition and performance of the investment portfolio.
2026Q2 Marks a Turning Point
The 2026Q2 net loss of $464.8M, per the income statement, represents a dramatic inflection from prior profitability, with operating income of -$467.0M signaling a fundamental shift.
Kemper's operating income collapsed from $119.8M in 2025Q1 to -$467.0M in 2026Q2, a swing of nearly $587M. This inflection point suggests a major event, such as a catastrophic loss, a change in reserve estimates, or a strategic repositioning. The magnitude of the loss is far beyond typical quarterly fluctuations, indicating that the company's earnings power has been severely impaired, and the sustainability of its dividend on the preferred shares may be at risk.
Earnings Quality Questioned by One-Time Items
Kemper's reported earnings may be overstated by favorable prior-year reserve development, as evidenced by combined ratios below loss ratios in 2024, raising questions about underlying profitability.
The discrepancy between loss ratios above 100% and combined ratios below 100% in 2024 suggests that reserve releases were masking underlying underwriting losses. If these releases are non-recurring, the true underwriting performance is worse than reported. Additionally, the 2026Q2 loss could be a one-time charge, but without disclosure, investors should be cautious about extrapolating future earnings. The company's reliance on investment income and reserve releases to achieve profitability appears fragile, and the recent deterioration may indicate a structural problem.