What Happened?
Shares of insurance holding company Kemper (NYSE: KMPR) fell 15.6% in the morning session after the company reported disappointing third-quarter 2025 financial results, highlighted by a significant miss on profitability. Kemper's adjusted earnings of $0.33 per share missed Wall Street's expectations of $1.32 by 75%. The weak profitability stemmed from poor underwriting performance, as the company's combined ratio came in at 99.6%. A combined ratio measures total underwriting costs and claims against premiums earned, and a figure below 100% indicates a profit. However, Kemper's result was significantly worse than the 94.7% analysts had projected and also deteriorated compared to the same quarter last year. While the company beat revenue expectations, it also fell short of estimates for book value per share, adding to investor concerns.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Kemper? Access our full analysis report here.
What Is The Market Telling Us
Kemper’s shares are not very volatile and have only had 4 moves greater than 5% over the last year. Moves this big are rare for Kemper and indicate this news significantly impacted the market’s perception of the business.
The previous big move we wrote about was 22 days ago when the stock dropped 8.1% on the news that the company announced that its President and Chief Executive Officer, Joseph P. Lacher, Jr., was stepping down effective immediately. Lacher, who led the specialty insurer for nearly a decade, also resigned from the Board of Directors. The sudden leadership change appeared to have shaken investor confidence, as stability in management is often a key factor for the market. To ensure a smooth transition, the board appointed C. Thomas Evans, Jr., the company's Executive Vice President, Secretary, and General Counsel, as the interim CEO. The company stated that a search for a permanent replacement was underway. Lacher was set to remain with Kemper in an advisory role through the end of the year to support the process.
Kemper is down 44% since the beginning of the year, and at $36.62 per share, it is trading 49.2% below its 52-week high of $72.10 from November 2024. Investors who bought $1,000 worth of Kemper’s shares 5 years ago would now be looking at an investment worth $564.93.
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