Kemper’s second-quarter results fell short of Wall Street expectations, prompting a significant negative reaction from the market. Management attributed this performance to a normalization in the specialty auto market, which saw growth rates revert to more traditional levels as competitive pressures increased. CEO Joseph Patrick Lacher noted that while policy growth and profitability remained solid, volatility in the company’s alternative investment portfolio weighed on net investment income. The quarter also included adverse prior-year development in the commercial auto segment, primarily due to higher severity in bodily injury claims.

Is now the time to buy KMPR? Find out in our full research report (it’s free).

While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our Top 5 Analyst Questions From Kemper’s Q2 Earnings Call

• Andrew Scott Kligerman (TD Cowen): Asked if slower policy growth implied pricing declines and whether sequential PIF drops suggested a strategic pullback. CEO Joseph Patrick Lacher clarified that changes were due to geographic mix and seasonality, not deliberate restraint.
• Andrew Scott Kligerman (TD Cowen): Inquired about confidence in sustaining loss ratios and the impact of the $19 million commercial auto charge. Lacher responded that normal fluctuations are expected, but management remains comfortable with the current range.
• Mitchell Rubin (Raymond James): Sought clarification on the impact of California’s higher minimum limits on premiums. Lacher indicated the effect was consistent with the previous quarter and largely complete due to the six-month policy cycle.
• Mitchell Rubin (Raymond James): Asked about state-by-state retention trends. President Matt Hunton explained retention was stable overall, with California holding firm, minor declines in Florida, and stability in Texas.
• Jon Paul Newsome (Piper Sandler): Probed the drivers behind adverse development in commercial auto and whether it indicated broader underwriting issues. CFO Bradley Thomas Camden emphasized it was due to low-frequency, high-severity claims linked to social inflation, not underwriting problems.

Catalysts in Upcoming Quarters

In the coming quarters, the StockStory team will watch closely for (1) signs that net investment income rebounds as expected, (2) continued stabilization in specialty auto policy growth and combined ratios as competitive dynamics evolve, and (3) the rate of share repurchases following the board’s expanded authorization. Execution on capital deployment and the management of claim volatility in commercial auto will also be key areas of focus.

Kemper currently trades at $52.27, down from $61.51 just before the earnings. In the wake of this quarter, is it a buy or sell? The answer lies in our full research report (it’s free).

Our Favorite Stocks Right Now

When Trump unveiled his aggressive tariff plan in April 2025, markets tanked as investors feared a full-blown trade war. But those who panicked and sold missed the subsequent rebound that’s already erased most losses.

Don’t let fear keep you from great opportunities and take a look at Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).

Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.

StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.