Insurance holding company Kemper (NYSE:KMPR) fell short of the market’s revenue expectations in Q1 CY2026, with sales falling 7.1% year on year to $1.11 billion. Its non-GAAP profit of $0.21 per share was 73.8% below analysts’ consensus estimates.
Is now the time to buy Kemper? Find out by accessing our full research report, it’s free.
Kemper (KMPR) Q1 CY2026 Highlights:
- Net Premiums Earned: $999.3 million vs analyst estimates of $1.10 billion (8.1% year-on-year decline, 9.3% miss)
- Revenue: $1.11 billion vs analyst estimates of $1.17 billion (7.1% year-on-year decline, 5.7% miss)
- Combined Ratio: 107% vs analyst estimates of 99.8% (695 basis point miss)
- Adjusted EPS: $0.21 vs analyst expectations of $0.80 (73.8% miss)
- Book Value per Share: $45.05 vs analyst estimates of $49.80 (1.2% year-on-year decline, 9.5% miss)
- Market Capitalization: $1.93 billion
“Our results this quarter reflect continued pressure in parts of the business, particularly California personal auto, while other areas of the portfolio are performing well and contributing positively,” said C. Thomas Evans, Jr., Interim CEO.
Company Overview
Originally known as Unitrin until rebranding in 2011, Kemper (NYSE:KMPR) is an insurance holding company that provides automobile, homeowners, life, and other insurance products to individuals and businesses across the United States.
Revenue Growth
Big picture, insurers generate revenue from three key sources. The first is the core business of underwriting policies. The second source is income from investing the “float” (premiums collected upfront not yet paid out as claims) in assets such as fixed-income assets and equities. The third is fees from various sources such as policy administration, annuities, or other value-added services. Kemper’s demand was weak over the last five years as its revenue fell at a 1.4% annual rate. This wasn’t a great result and suggests it’s a low quality business.
We at StockStory place the most emphasis on long-term growth, but within financials, a half-decade historical view may miss recent interest rate changes, market returns, and industry trends. Kemper’s revenue over the last two years was flat, sugggesting its demand was weak but stabilized after its initial drop. 
Note: Quarters not shown were determined to be outliers, impacted by outsized investment gains/losses that are not indicative of the recurring fundamentals of the business.
This quarter, Kemper missed Wall Street’s estimates and reported a rather uninspiring 7.1% year-on-year revenue decline, generating $1.11 billion of revenue.
Net premiums earned made up 91.8% of the company’s total revenue during the last five years, meaning Kemper lives and dies by its underwriting activities because non-insurance operations barely move the needle.
Net premiums earned commands greater market attention due to its reliability and consistency, whereas investment and fee income are often seen as more volatile revenue streams that fluctuate with market conditions.
WHILE YOU’RE HERE: The Next Palantir? One satellite company captures images of every point on Earth. Every single day. The Pentagon wants it. Hedge funds are using it to beat earnings. You’ve probably never heard of it.
This is what the early days of Palantir looked like before it became a $437 billion giant. Same playbook. Different technology. If you missed Palantir, you need to see this. Claim The Stock Ticker for Free HERE.
Book Value Per Share (BVPS)
Insurers are balance sheet businesses, collecting premiums upfront and paying out claims over time. Premiums collected but not yet paid out, often referred to as the float, are invested and create an asset base supported by a liability structure. Book value per share (BVPS) captures this dynamic by measuring these assets (investment portfolio, cash, reinsurance recoverables) less liabilities (claim reserves, debt, future policy benefits). BVPS is essentially the residual value for shareholders.
We therefore consider BVPS very important to track for insurers and a metric that sheds light on business quality because it reflects long-term capital growth and is harder to manipulate than more commonly-used metrics like EPS.
Kemper’s BVPS declined at a 7.6% annual clip over the last five years. However, BVPS growth has accelerated recently, growing by 5.8% annually over the last two years from $40.24 to $45.05 per share.
Key Takeaways from Kemper’s Q1 Results
We struggled to find many positives in these results. Its revenue missed and its net premiums earned fell short of Wall Street’s estimates. Overall, this quarter could have been better. The stock traded down 9.7% to $29.63 immediately following the results.
Kemper underperformed this quarter, but does that create an opportunity to invest right now? We think that the latest quarter is only one piece of the longer-term business quality puzzle. Quality, when combined with valuation, can help determine if the stock is a buy. We cover that in our actionable full research report which you can read here (it’s free).