Kemper announces $150 million accelerated share repurchase program

Published 13/08/2025, 22:38
Kemper announces $150 million accelerated share repurchase program

CHICAGO - Kemper Corporation (NYSE:KMPR) announced Wednesday it has entered into an accelerated share repurchase (ASR) agreement with Goldman Sachs & Co. LLC to buy back $150 million of its outstanding common stock.

The insurance company will make the $150 million payment to Goldman Sachs on August 14, 2025, and expects to receive an initial delivery of 2,279,203 shares of its common stock. This represents a majority of the shares Kemper anticipates repurchasing under the agreement.

The final number of shares to be repurchased will be determined by the volume-weighted average price of Kemper’s stock during specified dates over the term of the agreement, less a discount and subject to customary adjustments.

"This accelerated share repurchase reflects our strong confidence in the business and our disciplined approach to creating shareholder value," said Joseph P. Lacher, Jr., President and CEO of Kemper, in the press release statement. The company has demonstrated its commitment to shareholders through 36 consecutive years of dividend payments, with current analysis from InvestingPro indicating the stock is trading below its Fair Value.

The ASR will be completed under Kemper’s previously announced $550 million share repurchase authorizations. The transaction is expected to be completed within approximately three months.

Kemper Corporation provides specialized insurance through its Kemper Auto and Kemper Life brands, with approximately $13 billion in assets and serving over 4.7 million policies. The company maintains a "GOOD" overall financial health score and generated $551.1 million in levered free cash flow over the last twelve months, according to InvestingPro’s comprehensive analysis, which offers additional valuable insights through its detailed Pro Research Report.

In other recent news, Kemper Corporation’s second-quarter 2025 earnings report revealed a shortfall in both earnings per share (EPS) and revenue compared to analyst projections. The company posted an EPS of $1.30, below the anticipated $1.52, and reported revenue of $1.23 billion, slightly under the expected $1.24 billion. Following these results, Raymond James downgraded Kemper from Strong Buy to Outperform, adjusting the price target to $60.00 due to increased competition in the Non-Standard Personal Auto market. Meanwhile, Citizens JMP maintained a Market Outperform rating but lowered its price target to $75.00, citing challenges in the commercial auto segment caused by social inflation. Additionally, Piper Sandler downgraded Kemper to Underweight, reducing the price target to $50.00, highlighting concerns over policies-in-force growth and underwriting profitability. These developments reflect the current challenges facing Kemper in various market segments.

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