Kemper (KMPR) investor relations material

Executive summary

• Net loss attributable to shareholders was $1.7 million ($0.03 per share) for Q1 2026, down from net income of $99.7 million in Q1 2025, mainly due to higher claim severity/frequency in California personal auto and a $28 million Florida statutory premium refund.

• Commercial auto achieved record production, with policies in force up 10% year-over-year and an underlying combined ratio of 92.4%, while the Life segment delivered stable results with $18 million in operating income.

• Strategic focus remains on improving profitability, reducing volatility, and diversifying the portfolio, especially away from California, with ongoing restructuring and operational efficiency initiatives targeting over $60 million in run-rate savings.

• Investment portfolio delivered solid results, with net investment income rising to $107.1 million, supporting financial flexibility.

Financial highlights

• GAAP net loss of $1.7 million ($0.03 per share) for the quarter; adjusted consolidated net operating income was $12.5 million ($0.21 per share), or $34.6 million ($0.59 per share) excluding Florida refunds.

• Total revenues for Q1 2026 were $1,107.2 million, a decrease of $85.8 million from Q1 2025, mainly due to lower Specialty Personal Automobile volumes and the Florida refund.

• Net investment income increased to $107.1 million, up $5.9 million year-over-year.

• Commercial auto written premium exceeded $1 billion on a trailing 12-month basis for the first time.

• Trailing twelve-month operating cash flow was $493 million.

Outlook and guidance

• Initial benefits from California rate increases expected in Q2 2026, with more meaningful impact in the second half of the year; further rate filings and claims process enhancements are planned.

• Ongoing restructuring and efficiency initiatives target a medium-term expense ratio below 20% and continued operational improvements through 2027.

• Portfolio diversification and new product rollouts in Florida and Texas are expected to support future growth and reduce earnings volatility.