Why Kemper (KMPR) Stock Is Trading Lower Today

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]