Underwriting profitability remains under pressure as evidenced by the 2025Q4 combined ratio of 101.2% and a net loss of $4.4 million in 2026Q1.
| 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 | 4.71B | 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 % | 0.55% | 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 | 3.22B | 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 % | 68.37% | 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 | 381.6M | 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 % | 8.11% | 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 | 340.7M | 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 % | 7.24% | 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 | -12.5M | 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 % | 75.61% | 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 | 33M | 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 % | 0.7% | 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 | 20.5M | 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 % | 0.44% | 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 | 36.4M | 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 | 11.4M | -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 | 33M | 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 % | 0.7% | 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 | 1.8M | 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 % | 5.45% | 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 | 39.2M | 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 % | 0.83% | 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 % | -88.68% | -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) | 0.67 | 2.29 | 4.91 | -4.25 | -4.72 | -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 % | -89.44% | -53.36% | 215.53% | 9.96% | -151.06% | -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 | -4.72 | -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 | 58.8M | 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 |
Underwriting volatility in specialty
As indicated by the most recent quarterly filings, Kemper's revenue growth has shifted into negative territory, with a 7.0% decline in 2026Q1, reflecting the ongoing strategic exit from the Preferred P&C segment and the inherent challenges of maintaining volume in the non-standard auto market.
The contraction in revenue suggests that the company is prioritizing underwriting discipline over top-line expansion as it sheds lower-margin business. Investors should monitor whether this reduction in scale will eventually stabilize the premium base or if competitive pressures in the specialty segment will continue to erode the company's market share.
Based on the reported financial data, the combined ratio deteriorated to 101.2% in 2025Q4, signaling that the company is currently failing to generate an underwriting profit and is instead relying on investment returns to offset core operational losses in its specialty insurance lines.
The volatility in the loss ratio, which spiked to 100.0% in 2025Q3, highlights the sensitivity of the specialty auto segment to inflationary repair costs and medical severity. This trend suggests that the company's current pricing models may be lagging behind the actual cost of claims, warranting further investigation into the efficacy of recent rate increases.
As evidenced by the swing from a 100.0% loss ratio in 2025Q3 to a net loss of $4.4 million in 2026Q1, the company appears to be in a period of significant operational transition that has obscured its underlying earnings power and created substantial volatility in quarterly results.
The transition away from the Preferred P&C segment represents a major inflection point that may improve long-term margins but currently introduces significant noise into the income statement. Analysts should remain cautious, as the lack of consistent underwriting profitability suggests that the company has not yet successfully navigated the transition to a leaner, specialty-focused model.
According to the provided income statement data, the persistent inability to maintain a combined ratio consistently below 100% suggests that Kemper's specialty auto niche may be structurally disadvantaged by social inflation and rising claim severity that cannot be easily mitigated through standard rate adjustments.
The reliance on investment income to mask underwriting deficits appears to be a precarious strategy in an environment where claim costs are rising faster than earned premiums. This warrants further investigation into whether the company's agency-led distribution model is actually providing a competitive advantage or if it is simply trapping the firm in a high-cost, high-risk segment with limited pricing power.
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.