Kemper approves $500 million share repurchase, declares dividend

Published 05/08/2025, 21:46
Kemper approves $500 million share repurchase, declares dividend

CHICAGO - Kemper Corporation (NYSE:KMPR) announced Tuesday that its Board of Directors has approved a new share repurchase program of up to $500 million of its common stock, representing about 13% of the company’s current $3.94 billion market capitalization. The insurance company said repurchases will be made at the company’s discretion, based on market conditions and other factors. According to InvestingPro analysis, Kemper shows signs of being undervalued in the current market.

The Board also declared a quarterly dividend of $0.32 per share, payable on September 2, 2025, to shareholders of record as of August 18, 2025. The company has maintained dividend payments for 36 consecutive years, with the current yield standing at 2.1%.

"We remain committed to a disciplined capital strategy that balances both near- and long-term value creation," said Joseph P. Lacher, Jr., President and CEO of Kemper, in the press release statement.

Kemper Corporation describes itself as a specialized insurer with approximately $13 billion in assets. The company provides insurance solutions through its Kemper Auto and Kemper Life brands, serving over 4.7 million policies.

The announcement reflects the company’s ongoing capital allocation strategy as it maintains its regular dividend payment while creating a mechanism for potential share repurchases.

In other recent news, Kemper Corporation reported its first-quarter 2025 earnings, with earnings per share (EPS) surpassing expectations at $1.65, compared to the forecasted $1.49. However, the company’s revenue fell short of projections, reaching $1.19 billion against an anticipated $1.22 billion. Additionally, Kemper shareholders approved a significant amendment to the company’s stock incentive plan during the recent annual meeting. This plan increases the total number of authorized shares by 625,000, aiming to provide equity-based compensation to eligible employees, officers, and directors.

In another development, TD Cowen reiterated its Buy rating on Kemper stock, maintaining a price target of $90.00. The firm highlighted Kemper’s strong growth prospects in the non-standard auto insurance market, expecting policy-in-force growth to exceed 10% by 2025. TD Cowen also noted the company’s favorable combined ratios projected for 2025 and 2026. These developments reflect Kemper’s strategic positioning and long-term growth outlook.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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