Kemper shares fell 10.6% following a disappointing quarter marked by elevated loss costs in California’s personal auto segment and statutory premium refunds in Florida. These pressures drove margin compression and earnings shortfalls, outweighing solid performance in commercial auto and life insurance.

• California personal auto results were significantly pressured by increased minimum liability limits, leading to higher loss costs and attorney involvement in claims.
• Florida results were negatively impacted by mandatory statutory premium refunds due to regulatory profit thresholds, despite ongoing profitable growth in the current auto business.
• Commercial auto posted its best production quarter ever, representing a bright spot amid overall headwinds.
• Life insurance operations continued to deliver steady, diversified earnings contributions.
• Management is executing restructuring initiatives targeting over $60 million in annual run-rate savings and claims process improvements to address ongoing cost challenges.