Kemper posts adjusted third-quarter profit of $1.01 a share, $0.44 above expectations

Kemper expects to release its full third-quarter 2026 results on Monday, November 9.

Kemper said in a preliminary release, published at 4:05 PM Eastern on Wednesday, that its adjusted net operating income for the third quarter of 2026 is expected to be about $60 million, or $1.01 per diluted share. In the second quarter, adjusted operating income was $26 million, or $0.45 a share.

Stephen McAnena, Kemper's president and chief executive, said the company is pleased with the improvement from the second quarter but has more work to do. He said the focus is on disciplined execution to return the company to steady, sustainable profit.

Net income for the quarter is expected to be about $52 million, or $0.88 per diluted share. That compares with a net loss of $465 million, or $7.90 a share, in the second quarter. It included a $460 million non-cash goodwill impairment, a write-down of the premium paid for past acquisitions.

In its Specialty Auto unit, the combined ratio is expected to be about 99.2%, against 104.0% in the second quarter. A combined ratio compares claims and costs with premiums collected, so a figure below 100% means an underwriting profit. The third-quarter figure includes about $23 million of favourable development on claims reserves set aside in earlier years. On an underlying basis, excluding that development, the ratio is expected to be about 101.7%, against 102.3% in the second quarter.

Kemper expects life insurance operating earnings of about $20 million, up from $18 million in the second quarter. Consolidated net investment income is expected to be about $107 million.