Underwriting profitability remains under pressure as the combined ratio deteriorated to 100.7% in 2026Q1, reflecting a failure to outpace rising claim costs.
| 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 % | 0.58% | 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 | 4.05B | 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 % | 85.95% | 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 | 661.7M | 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 % | 14.05% | 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 | 628.7M | 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 % | 13.35% | 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 | -900K | 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 % | 99.3% | 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 | 32.1M | 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 % | 0.68% | 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 | 2.1M | -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 | 41.9M | 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 % | 0.89% | 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 % | -87.9% | -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) | 0.71 | 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 margin volatility
As indicated by the most recent quarterly filings, Kemper's revenue growth has trended into negative territory, with a 6.8% decline in 2026Q1, reflecting the strategic exit from the Preferred P&C segment and ongoing challenges in maintaining premium volume within the core non-standard automobile insurance market.
The consistent year-over-year revenue contraction suggests that the company is struggling to offset the loss of premiums from its discontinued business lines. Investors should monitor whether the remaining specialty portfolio can achieve sufficient scale to stabilize the top line or if further shrinkage is required to reach a sustainable underwriting base.
Based on reported financial data, the combined ratio has deteriorated to 100.7% in 2026Q1, signaling that the company is currently failing to generate an underwriting profit as claim costs continue to outpace the pricing adjustments implemented across its specialty property and casualty insurance segments.
The persistent breach of the 100% combined ratio threshold implies that Kemper is currently reliant on non-underwriting sources to cover its operational costs. This trend warrants further investigation into whether the company's rate filing strategy in key states like California is sufficient to combat the ongoing inflationary pressures on loss severity.
According to the historical income statement data, the company experienced a significant inflection point in 2025Q3, where the loss ratio spiked to 100.0%, marking a period of extreme underwriting stress that has since forced a re-evaluation of the firm's core specialty property and casualty risk appetite.
This period of elevated loss activity appears to have been a catalyst for the subsequent strategic shift away from preferred lines. The volatility observed during this transition suggests that the company's earnings profile remains highly sensitive to sudden shifts in claim frequency and the adequacy of its existing loss reserves.
As reported in recent financial statements, the fluctuation in quarterly net income, which swung from a $99.7M profit in 2025Q1 to a $1.7M loss in 2026Q1, suggests that the company's earnings quality may be masked by significant volatility in loss development and potential reserve adjustments.
The sharp divergence between operating income and net income in several periods warrants further investigation into whether prior-year reserve releases are being used to artificially smooth earnings. Analysts should remain cautious regarding the sustainability of the company's bottom line until the combined ratio demonstrates a consistent return to sub-100% levels.
Quick answers to the most common questions about buying KMPR stock.
For fiscal year 2025, Kemper Corporation (KMPR) reported total revenue of $4.80B. This represents a 205.0% increase compared to $1.57B in 1996.
Kemper Corporation (KMPR) is profitable, generating $143.3M in net income for the fiscal year ending 2025 with a net profit margin of 3.0%.
Kemper Corporation (KMPR) 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 (KMPR) 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.