Street Calls of the Week
CHICAGO - Kemper Corporation (NYSE:KMPR), currently trading at $50.37 and showing a perfect Piotroski Score of 9 according to InvestingPro, announced Wednesday that Joseph P. Lacher, Jr. is stepping down as President and Chief Executive Officer after nearly a decade in the role, effective immediately. Lacher will also resign from the company’s Board of Directors but remain in an advisory capacity through the end of 2025 to support the transition.
C. Thomas Evans, Jr., Kemper’s Executive Vice President, Secretary, and General Counsel, has been appointed Interim CEO while the board conducts a comprehensive search for a permanent replacement. Evans has been with Kemper since 1992, serving in multiple leadership roles throughout his tenure. The leadership change comes as the company’s stock has declined 23% year-to-date, though InvestingPro analysis suggests the stock is currently undervalued.
"On behalf of the Board, I want to thank Joe for a decade of dedicated leadership at Kemper and his support throughout this transition," said Gerry Laderman, Chairman of the Board, in a press release statement. "We appreciate his guidance through challenging periods, including the extraordinary disruptions of the COVID-19 pandemic."
Lacher expressed gratitude for his time at the company, stating, "It has been a privilege to serve as CEO of Kemper for the past 10 years. I want to thank our employees, customers, investors, and the Board for their support throughout my tenure."
Evans, who joined Kemper in 1992 after working in private practice at Winston & Strawn, noted that the company plans to provide a financial update during its third quarter earnings call in early November.
Kemper Corporation is a specialized insurer with approximately $13 billion in assets and a market capitalization of $3.16 billion. The company serves over 4.7 million policies through its Kemper Auto and Kemper Life brands, with approximately 24,000 agents and brokers and 7,500 associates. Notable for its 36-year track record of consecutive dividend payments, currently yielding 2.54%, the company maintains strong fundamentals with a P/E ratio of 9.48x. For deeper insights into Kemper’s financial health and growth potential, investors can access comprehensive analysis through InvestingPro’s detailed research reports.
In other recent news, Kemper Corporation reported its second-quarter 2025 earnings, which fell short of expectations. The company announced earnings per share (EPS) of $1.30, missing the consensus estimate of $1.52, and reported revenue of $1.23 billion, slightly below the forecasted $1.24 billion. Additionally, Kemper has entered into an accelerated share repurchase agreement with Goldman Sachs to buy back $150 million of its outstanding common stock, with an initial delivery of 2,279,203 shares expected. Analyst firms have responded to these developments with mixed reviews. Raymond James downgraded Kemper from Strong Buy to Outperform, citing challenges in the Non-Standard Personal Auto market. Citizens JMP maintained a Market Outperform rating but lowered its price target to $75, attributing the earnings shortfall to unfavorable developments in the commercial auto segment. Piper Sandler further downgraded Kemper to Underweight, expressing concerns about the company’s growth and profitability. These recent developments reflect ongoing challenges and strategic moves within Kemper Corporation.
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