Commission file number: 001-18298 UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Kemper Corporation For the fiscal year ended December 31, 2025 (Exact name of registrant as specified in its charter) OR (State or other jurisdiction of ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 200 E. Randolph Street Suite 3300 Chicago IL 60601 (Address of pr ...

Core Insights - Kemper's fourth-quarter results were disappointing, primarily due to increased bodily injury severity in California and statutory refunds in Florida [4][6] - The company is implementing cost-cutting measures and strategic shifts to improve profitability, including a restructuring charge of $15.5 million and expected annualized savings of approximately $33 million [5][9] Financial Performance - Kemper reported a net loss of $8 million, or $0.13 per share, with adjusted consolidated net operating income of $14.6 million, or $0.25 per share [3][6] - The underlying combined ratio in the property and casualty segment increased to 105%, driven by high bodily injury severity in California and a $35 million statutory refund in Florida [2][6] Market Challenges - California's market is identified as a significant challenge due to structural changes, including increased minimum liability limits and social inflation, complicating loss cost predictability [1][7] - The company has noted that personal auto profitability issues are predominantly driven by California, while other states like Florida and Texas are performing better [7][8] Strategic Initiatives - Kemper is piloting a new personal auto product aimed at non-California states, designed to enhance competitiveness and improve rate-to-risk matching [12][13] - The company is focusing on diversifying its personal auto book geographically, aiming for over 50% of customers to be outside California [11] Claims Management - Kemper is shifting its claims management focus from material damage to third-party liability, utilizing advanced analytics and AI to reduce legal system abuse and attorney involvement [10] Life Insurance Segment - The life insurance segment reported adjusted net operating income of $20 million, with stable earned premiums and an in-force face value of approximately $19.6 billion [17] Capital and Liquidity - Kemper ended the quarter with over $1 billion in available liquidity, having used operating cash flow to retire $450 million in debt and repurchase approximately $300 million in common stock [18] Reinsurance and Risk Management - The company has a one-year catastrophe excess-of-loss reinsurance program providing 95% coverage for losses exceeding $50 million, with a total limit reduced by $15 million from the previous year [19]

Company Performance - Kemper reported quarterly earnings of $0.25 per share, missing the Zacks Consensus Estimate of $0.85 per share, and down from $1.78 per share a year ago, representing an earnings surprise of -70.67% [1] - The company posted revenues of $1.15 billion for the quarter, missing the Zacks Consensus Estimate by 6.34%, and down from $1.18 billion year-over-year [2] - Over the last four quarters, Kemper has surpassed consensus EPS estimates only once and topped revenue estimates two times [2] Stock Outlook - Kemper shares have declined approximately 6% since the beginning of the year, while the S&P 500 has gained 1.1% [3] - The current consensus EPS estimate for the upcoming quarter is $1.07 on revenues of $1.25 billion, and for the current fiscal year, it is $4.88 on revenues of $5.1 billion [7] - The estimate revisions trend for Kemper was unfavorable prior to the earnings release, resulting in a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [6] Industry Context - The Insurance - Multi line industry, to which Kemper belongs, is currently in the bottom 38% of over 250 Zacks industries, suggesting that the outlook for the industry can significantly impact stock performance [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Investor Supplement Fourth Quarter 2025 Caution Regarding Forward-Looking Statements This Investor Supplement may contain or incorporate by reference information that includes or is based on forward-looking statements within the meaning of the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995. We caution investors that these forward-looking statements are not guarantees of future performance, and actual results may differ materially. Such statements involve known and unknown ris ...

Group 1 - Kemper Corporation declared a quarterly dividend of $0.32 per share, payable on March 3, 2026, to shareholders of record as of February 17, 2026 [1] - Kemper is one of the nation's leading specialized insurers with approximately $12 billion in assets [2] - The company serves over 4.6 million policies and is represented by 24,200 agents and brokers [2] - Kemper has 7,500 associates dedicated to meeting the needs of its customers [2]

Core Insights - The author possesses a strong academic background in economics and politics, emphasizing economic development, and has 36 years of executive management experience in the insurance and reinsurance sectors, particularly in Global and Asia Pacific markets, as well as expertise in climate change and ESG [1]. Group 1 - The author has extensive knowledge in the insurance and reinsurance industries, which is critical for understanding market dynamics and investment opportunities [1]. - The focus on climate change and ESG indicates a growing trend in investment strategies that prioritize sustainability and environmental responsibility [1].

Core Insights - Kemper experienced a significant decline in stock value, with shares dropping over 14% following its latest earnings release, contrasting sharply with the S&P 500's 1.1% dip [1] Financial Performance - The company reported total revenue of nearly $1.24 billion for the third quarter, marking a 5% increase compared to the same period in 2024, primarily driven by a 6% rise in earned premiums to $1.13 billion [2] - However, Kemper's net operating income, not in accordance with GAAP, fell dramatically to $20.4 million ($0.33 per share) from $105 million in the previous year, significantly missing the consensus analyst estimate of $1.33 per share [3] Challenges - The decline in profitability was mainly attributed to the specialty property and casualty line, which suffered from higher adverse prior year developments on bodily injury coverages within commercial automobile insurance, despite some offset from growth in earned premiums due to rate increases [4][5]

Core Insights - Kemper's shares fell 15.6% after disappointing Q3 2025 financial results, with adjusted earnings of $0.33 per share missing expectations of $1.32 by 75% [1] - The company's combined ratio was 99.6%, significantly worse than the projected 94.7%, indicating poor underwriting performance [1] - Although revenue expectations were met, Kemper fell short on book value per share, raising investor concerns [1] Financial Performance - Kemper's adjusted earnings for Q3 2025 were $0.33 per share, missing Wall Street expectations by 75% [1] - The combined ratio of 99.6% indicates that total underwriting costs and claims exceeded premiums earned, with a figure below 100% typically indicating profitability [1] - The company's performance deteriorated compared to the same quarter last year [1] Stock Market Reaction - The stock experienced a significant drop, marking one of the rare instances of volatility for Kemper, which has only had four moves greater than 5% in the past year [3] - The previous notable drop occurred 22 days prior, when the CEO announced his immediate resignation, which affected investor confidence [4] Year-to-Date Performance - Kemper's stock is down 44% since the beginning of the year, trading at $36.62 per share, which is 49.2% below its 52-week high of $72.10 from November 2024 [5] - An investment of $1,000 in Kemper's shares five years ago would now be worth $564.93 [5]

Core Viewpoint - The article emphasizes the importance of enabling Javascript and cookies in browsers to prevent access issues, particularly when ad-blockers are enabled [1] Group 1 - The article suggests that users may face restrictions if they have ad-blockers enabled, indicating a need for adjustments in browser settings to ensure smooth access [1]

Earnings Performance - Kemper reported quarterly earnings of $0.33 per share, missing the Zacks Consensus Estimate of $1.33 per share, and down from $1.62 per share a year ago, representing an earnings surprise of -75.19% [1] - The company posted revenues of $1.24 billion for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 1.79%, compared to year-ago revenues of $1.18 billion [2] Stock Performance - Kemper shares have lost about 34.2% since the beginning of the year, while the S&P 500 has gained 15.1% [3] - The current Zacks Rank for Kemper is 3 (Hold), indicating that shares are expected to perform in line with the market in the near future [6] Future Outlook - The current consensus EPS estimate for the coming quarter is $1.23 on $1.23 billion in revenues, and $5.56 on $4.86 billion in revenues for the current fiscal year [7] - The outlook for the industry, specifically the Insurance - Multi line sector, is currently in the top 28% of over 250 Zacks industries, suggesting a favorable environment for stock performance [8] Industry Context - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5] - Oscar Health, Inc., another company in the same industry, is expected to report a quarterly loss of $0.55 per share, with revenues projected to be $3.09 billion, up 27.5% from the year-ago quarter [9][10]