Kemper (KMPR) 47th Annual Raymond James Institutional Investor Conference summary

Business focus and strategic outlook

• Concentrating on two core businesses: non-standard auto (including commercial fleets) and life insurance, with a focus on operational efficiency and profitability restoration through 2026–2027.

• Recent investments in technology and platforms are expected to yield benefits over the next few years, with remaining projects nearing completion.

• Leadership changes and restructuring have been implemented to optimize costs and processes, including a new Chief Claims Officer and targeted cost savings.

• CEO search is ongoing, with a deliberate process expected to conclude within six to nine months.

California market developments

• California minimum liability limits doubled effective January 2024, significantly impacting loss ratios and attorney involvement, especially since 90%+ of business there is minimum limits.

• Combined ratio in California increased by 15–16 points in late 2025, driven by higher BI severity and attorney-represented claims, which are 3.5–4x more expensive.

• A 6.9% rate increase was approved, with underlying liability coverages seeing increases north of 40%; further rate actions will be considered as needed.

• Claims process improvements and technology adoption are underway to reduce severity and attorney involvement, with workflow automation and predictive analytics being deployed.

• Regulatory environment in California has become more responsive, expediting rate approvals and fostering industry cooperation.

Commercial vehicle and other state markets

• Commercial vehicle business, nearly $1 billion in size with California comprising 50%, continues to grow with strong pricing and low nineties combined ratio.

• Rate approval process for commercial vehicles is more flexible and faster than for personal auto.

• Florida market has stabilized and become more competitive following tort reform, leading to reduced litigation and lower rates; growth is expected to outpace California.

• Texas market remains fragmented but attractive, with new product launches and expansion into additional geographies planned for early 2026.

• Commercial vehicle segments in Florida and Texas are also growing, with continued investment and positive outlook.