Kemper Preliminary Results Show Specialty Auto Combined Ratio at 99.2%

The Tip Desk · November 2, 2026 · 2 min read

The insurer said third-quarter net income is expected at about $52 million, or $0.88 a share, after a $465 million second-quarter loss.

Kemper Corporation (KMPR), a specialized insurer with about $12 billion in assets, said preliminary results for the third quarter ended September 30, 2026, show net income of approximately $52 million, or $0.88 a share, after a net loss of $465 million, or $7.90 a share, in the second quarter.

The swing followed a second-quarter loss that included a $460 million non-cash goodwill impairment. Adjusted Consolidated Net Operating Income, an after-tax non-GAAP measure, is expected at about $60 million, or $1.01 a share, compared with $26 million, or $0.45 a share, in the second quarter.

President and Chief Executive Officer Stephen J. McAnena said the company was pleased with the improvement but had more work to do, with a focus on disciplined execution and returning Kemper to consistent, sustainable profitability.

Specialty Auto underwriting was the operating turn. The Specialty Auto Combined Ratio is expected at approximately 99.2%, an improvement of 4.8 percentage points from 104.0% in the second quarter. Third-quarter results include approximately $23 million of favorable prior-year reserve development.

The Underlying Combined Ratio, which excludes catastrophe losses and prior-year reserve development, is expected at about 101.7%, compared with 102.3% in the second quarter. The reconciliation showed current-year catastrophe losses and LAE at a 0.2% ratio in the third quarter versus 0.7% in the second, and prior-year non-catastrophe development at a 2.7% credit versus a 1.0% charge.

Life Insurance Operating Earnings are expected at about $20 million, compared with $18 million in the second quarter. Consolidated Net Investment Income is expected at about $107 million, compared with $105 million.

The second-quarter release had already described improving underlying operating performance after the goodwill charge, with Personal Auto profitability improving on underwriting actions and expense discipline and Commercial Auto maintaining strong underlying performance. Adjusted Consolidated Net Operating Income in the second quarter was $26.3 million, or $0.45 a share, after $12.5 million, or $0.21 a share, in the first quarter.

The first-quarter release had cited pressure in Specialty Personal Automobile, particularly California, and rate and non-rate actions to improve profitability, while Commercial Auto produced an Underlying Combined Ratio of 92.4% and Life generated solid results.

Kemper said it expects to release complete third-quarter 2026 financial results on November 9, 2026, followed by an earnings conference call on November 10 at 7:00 a.m. Central Time.

The company said it will continue to evaluate additional efficiency opportunities through 2027 after a restructuring program launched in the third quarter of 2025. Non-Core Operations, including Preferred Insurance, remain excluded from Adjusted Consolidated Net Operating Income; the company said it expects to fully exit that business.