KEMPER Corp
For the period ended Jun 30, 2026. Filed Aug 5, 2026.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2026 · Filed Aug 5, 2026
KMPR$33.39-5.5%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-03-31; filed 2026-05-06.
0000860748-26-000045
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-06-30; filed 2026-08-05.
0000860748-26-000084
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 150 previous paragraphs and 175 current paragraphs.
81 unchanged; 58 reworded; 27 added; 9 removed; 2 previous and 9 current paragraphs rearranged.
Tables are not compared: 18 previous and 18 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (27)
Current report
(ii) Net Realized Investment Gains (Losses);
Current report
(v) Debt Extinguishment and Other Charges;
Current report
(vi) Goodwill Impairment;
Current report
Net Loss attributable to Kemper Corporation was $466.5 million, or $(7.93) per unrestricted common share, for the six months ended June 30, 2026, compared to Net Income attributable to Kemper Corporation of $172.3 million, or $2.69 per unrestricted common share, for the same period in 2025. Net (Loss) Income attributable to Kemper Corporation decreased by $638.8 million due primarily to a $460.0 million goodwill impairment related to the Specialty Property & Casualty Insurance segment, lower Adjusted Consolidated Net Operating Income and higher impairment losses.
Current report
The loss from Non-Core Operations decreased by $1.3 million for the six months ended June 30, 2026 compared to the same period in 2025, primarily due to lower catastrophe losses, partially offset by higher adverse prior year development.
Current report
Net Investment Income increased by $9.5 million to $105.4 million for the three months ended June 30, 2026, compared to $95.9 million for the same period in 2025, primarily driven by increased earnings on alternative investments and higher levels and yields of fixed maturity securities, partially offset by lower average Short-term invested assets.
Current report
Total Revenues decreased by $218.7 million to $2,199.9 million for the six months ended June 30, 2026, compared to $2,418.6 million for the same period in 2025. The decrease was primarily driven by lower earned premiums and higher impairment losses, partially offset by higher net investment income.
Current report
Net Investment Income increased by $15.4 million to $212.5 million for the six months ended June 30, 2026, compared to $197.1 million for the same period in 2025, primarily driven by increased earnings on alternative investments and higher levels and yields of fixed maturity securities, partially offset by lower average Short-term invested assets.
Current report
Impairment Losses increased by $22.1 million for the six months ended June 30, 2026, compared to the same period in 2025, primarily driven by a $21.0 million credit loss allowance recognized on the Reciprocal Exchange surplus notes.
Current report
Earned Premiums in the Specialty Property & Casualty Insurance segment decreased by $114.2 million for the three months ended June 30, 2026, compared to the same period in 2025, primarily due to lower personal automobile volumes, partially offset by higher commercial automobile volumes.
Current report
Incurred Loss and LAE were $748.0 million or 83.4% of earned premiums for the three months ended June 30, 2026 compared to $749.4 million or 74.1% of earned premiums, for the same period in 2025. Incurred losses and LAE as a percentage of earned premiums increased primarily due to a deterioration in the underlying loss and LAE ratio. Underlying losses and LAE as a percentage of earned premiums were 81.7% for the three months ended June 30, 2026, a deterioration of 9.4 percentage points, compared to the same period in 2025, due to higher claim severity and frequency primarily related to bodily injury coverages in California. Underlying losses and LAE exclude the impact of catastrophes and loss and LAE reserve development. Adverse loss and LAE reserve development (including catastrophe reserve development) was $9.2 million for the three months ended June 30, 2026, compared to adverse development of $14.0 million for the same period in 2025, an improvement of $4.8 million, due primarily to favorable development on personal injury protection and collision coverages in personal automobile, partially offset by adverse loss patterns in bodily injury and higher losses associated with litigation matters. Catastrophe losses and LAE (excluding reserve development) were $6.1 million for the three months ended June 30, 2026 compared to $5.3 million for the same period in 2025, a deterioration of $0.8 million due to increased severity of catastrophe events in 2026.
Current report
Net Investment Income increased by $8.9 million for the six months ended June 30, 2026 compared to the same period in 2025, due primarily to higher levels and yields of fixed maturity securities and increased earnings on alternative investments, partially offset by lower average short-term investments.
Current report
The Specialty Property & Casualty Insurance segment’s six months ended June 30, 2026 effective tax rate was 15.5% compared to 20.3% for the same period in 2025. The effective income tax rate for the six months ended June 30, 2026 and 2025 differs from the federal statutory income tax rate due to investments in Company-Owned Life Insurance, tax-exempt investment income and nondeductible stock and executive compensation. The difference in effective tax rates between the six months ended 2026 and 2025 is primarily due to changes in pretax income.
Current report
Earned Premiums on personal automobile insurance decreased by $248.6 million for the six months ended June 30, 2026, compared to the same period in 2025, primarily due to lower volumes and a $30.0 million Florida Statutory Profit Limit Refund in the first half of 2026. Incurred losses and LAE were $1,106.3 million, or 85.5% of earned premiums for the six months ended June 30, 2026, compared to $1,097.8 million, or 71.1% of earned premiums, for the same period in 2025. Incurred losses and LAE as a percentage of earned premiums increased due to a deterioration in the underlying loss and LAE ratio. Underlying losses and LAE as a percentage of related earned premiums were 85.9% for the six months ended June 30, 2026, compared to 71.2% for the same period in 2025, a deterioration of 14.7 percentage points. The deterioration was driven by higher claim severity and frequency, primarily related to bodily injury coverages in California, and the Florida Statutory Profit Limit Refund in the first half of 2026. Favorable loss and LAE reserve development was $11.1 million for the six months ended June 30, 2026, compared to $9.3 million for the same period in 2025, an improvement of $1.8 million due primarily to development on personal injury protection and collision coverages, partially offset by loss patterns in bodily injury and higher losses associated with litigation matters. Catastrophe losses and LAE (excluding reserve development) were $6.2 million for the six months ended June 30, 2026, compared to $7.0 million for the same period in 2025, an improvement of $0.8 million due to fewer catastrophe events in 2026.
Current report
Earned Premiums on commercial automobile insurance increased by $57.4 million for the six months ended June 30, 2026, compared to the same period in 2025, due primarily to higher average earned premium per exposure, targeted mix shifts, and higher business volumes. Incurred losses and LAE were $389.4 million, or 79.9% of earned premiums in 2026, compared to $338.4 million, or 78.7% of earned premiums in 2025. Incurred losses and LAE as a percentage of earned premiums increased primarily due to a deterioration in the underlying loss and LAE ratio. Underlying losses and LAE as a percentage of earned premiums were 74.8% for the six months ended June 30, 2026, compared to 72.7% during the same period in 2025, a deterioration of 2.1 percentage points driven by higher claim severity, primarily related to bodily injury coverages, partially offset by higher average earned premium per exposure (2.0% increase year over year). Adverse loss and LAE reserve development was $23.9 million for the six months ended June 30, 2026, compared to adverse development of $24.0 million for the same period in 2025, a decrease of $0.1 million. Catastrophe losses and LAE (excluding reserve development) were $1.2 million for the six months ended June 30, 2026, compared to $2.1 million for the same period in 2025, a decrease of $0.9 million.
Current report
The Life Insurance segment reported Total Segment Adjusted Net Operating Income of $18.3 million for the three months ended June 30, 2026, compared to $12.6 million for the same period in 2025. The increase in segment net operating results was due primarily to higher Net Investment Income and Earned Premiums.
Current report
Life Insurance (Continued)
Current report
The Life Insurance segment’s six months ended June 30, 2026 effective income tax rate was 15.1% compared to 14.0% for the same period in 2025. The effective income tax rate for the six months ended June 30, 2026 and 2025 differs from the federal statutory income tax rate due to investments in Company-Owned Life Insurance, tax-exempt investment income and nondeductible stock and executive compensation. The increase in the effective tax rate from the six months ended June 30, 2025 is primarily due to an increase in pretax income and an increase in tax expense related to nondeductible stock and executive compensation, partially offset by an increase in tax benefits from Company-Owned Life Insurance.
Current report
Net Investment Income increased by $9.5 million and $15.4 million for the three and six months ended June 30, 2026, respectively, compared to the same periods in 2025, primarily driven by increased earnings on alternative investments and higher levels and yields from fixed maturity securities, partially offset by lower average Short-term invested assets.
Current report
Insurance and Other Expenses decreased by $27.6 million and $45.1 million for the three and six months ended June 30, 2026, respectively, compared to the same periods in 2025, primarily driven by lower Insurance Expenses, partially offset by higher Other Expenses.
Current report
Policy acquisition costs decreased by $20.3 million and $31.9 million for the three and six months ended June 30, 2026, respectively, compared to the same periods in 2025, primarily driven by reduced business volumes in the Specialty Property & Casualty Insurance segment.
Current report
Other Expenses increased by $6.7 million and $7.0 million for the three and six months ended June 30, 2026, respectively, compared to the same periods in 2025, primarily due to higher Acquisition and Disposition Related Transaction, Integration, Restructuring and Other Costs. These costs included $15.9 million and $19.9 million of restructuring charges to achieve operational and organizational efficiencies for the three and six months ended June 30, 2026, respectively. The Company continues to evaluate additional efficiency opportunities through 2027. These costs were partially offset by a pre-tax gain of $7.5 million related to the sale of Newins in the second quarter of 2026. The costs for the three and six months ended June 30, 2025 primarily consisted of integration expenses due to continued investments in information technology.
Current report
Goodwill Impairment
Current report
Goodwill Impairment increased by $460.0 million for the three and six months ended June 30, 2026, respectively, compared to the same periods in 2025, due to the impairment of goodwill related to the Specialty & Property Casualty Insurance segment. See Note 3, "Goodwill" to the Condensed Consolidated Financial Statements for more information.
Current report
The Company reported nondeductible goodwill expense of $467.2 million for the three and six months ended June 30, 2026. The Company reported no nondeductible goodwill expense for the same periods in 2025.
Current report
Subsequently, on August 3, 2026, the Company entered into an amendment to the credit agreement. The Amendment, among other things, (i) replaces the consolidated net worth financial covenant contained in the agreement with a consolidated tangible net worth financial covenant, effective as of June 29, 2026, and (ii) adds a quarterly-tested financial covenant requiring each of Trinity and United Insurance to maintain a minimum risk-based capital ratio.
Current report
No shares were repurchased during the three and six months ended June 30, 2026.
Removed paragraphs (9)
Previous report
(ii) Net Realized Investment Gains;
Previous report
(v) Debt Extinguishment, Pension Settlement and Other Charges;
Previous report
(vi) Goodwill Impairment Charges;
Previous report
Net Investment Income increased by $5.9 million to $107.1 million for the three months ended March 31, 2026, compared to $101.2 million for the same period in 2025, mostly driven by increased earnings on alternative investments, higher levels of fixed maturity securities and mortgage loans, partially offset by lower average Short-term invested assets.
Previous report
Net Realized Investment Gains decreased by $0.5 million to $0.4 million for the three months ended March 31, 2026, compared to $0.9 million for the same period in 2025, due primarily to decreased gains on sales of fixed maturity and equity securities, partially offset by the absence of net realized losses on ultra-long treasury future derivative transactions that did not qualify for hedge accounting.
Previous report
Net Investment Income was $107.1 million and $101.2 million for the three months ended March 31, 2026 and 2025, respectively. Net Investment Income increased by $5.9 million in 2026, mostly driven by increased earnings on alternative investments, higher levels of fixed maturity securities and mortgage loans (included in other investments), partially offset by lower average short-term invested assets.
Previous report
1 Includes losses from intent-to-sell securities and direct write-down securities of $1.3 million and $1.2 million for the three months ended March 31, 2026, and 2025 respectively.
Previous report
Insurance and Other Expenses were $277.0 million in 2026, compared to $294.5 million in 2025, a decrease of $17.5 million which was primarily driven by lower Insurance Expenses.
Previous report
Income Taxes (Continued)
Reworded paragraphs (58)
Previous wording
Significant non-recurring items are excluded when (a) the nature of the charge or gain is such that it is reasonably unlikely to recur within two years, and (b) there has been no similar charge or gain within the prior two years. There were no applicable significant non-recurring items that the Company excluded from the calculation of Adjusted Consolidated Net Operating Income for the three months ended March 31, 2026 or 2025.
Current wording
Significant non-recurring items are excluded when (a) the nature of the charge or gain is such that it is reasonably unlikely to recur within two years, and (b) there has been no similar charge or gain within the prior two years. There were no applicable significant non-recurring items that the Company excluded from the calculation of Adjusted Consolidated Net Operating Income for the three and six months ended June 30, 2026 or 2025.
Previous wording
Change in Fair Value of Equity and Convertible Securities, Net Realized Investment Gains and Impairment Losses related to investments included in the Company’s results may vary significantly between periods and are generally driven by business decisions and external economic developments such as capital market conditions that impact the values of the Company’s investments, the timing of which is unrelated to the insurance underwriting process. Acquisition and Disposition Related Transaction Costs, Integration Costs, and Restructuring and Other Costs may vary significantly between periods and are generally driven by the timing of acquisitions and business decisions which are unrelated to the insurance underwriting process. In the third quarter of 2025, a restructuring program was launched to achieve operational and organizational efficiencies. The Company will continue to evaluate additional efficiency opportunities through 2027. Debt Extinguishment, Pension Settlement and Other Charges relate to (i) loss from early extinguishment of debt, which is driven by the Company’s financing and refinancing decisions and capital needs, as well as external economic developments such as debt market conditions, the timing of which is unrelated to the insurance underwriting process; (ii) settlement of pension plan obligations which are business decisions made by the Company, the timing of which is unrelated to the underwriting process; and (iii) other charges that are non-standard, not part of the ordinary course of business, and unrelated to the insurance underwriting process. Goodwill Impairment Charges are excluded because they are infrequent and non-recurring charges. Non-Core Operations includes the results of our Preferred Insurance business which we expect to fully exit. These results are excluded because they are irrelevant to our ongoing operations and do not qualify for Discontinued Operations under GAAP. Significant non-recurring items are excluded because, by their nature, they are not indicative of the Company’s business or economic trends.
Current wording
Change in Fair Value of Equity and Convertible Securities, Net Realized Investment Gains (Losses) and Impairment Losses related to investments included in the Company’s results may vary significantly between periods and are generally driven by business decisions and external economic developments such as capital market conditions that impact the values of the Company’s investments, the timing of which is unrelated to the insurance underwriting process. Acquisition and Disposition Related Transaction Costs, Integration Costs, and Restructuring and Other Costs may vary significantly between periods and are generally driven by the timing of business decisions which are unrelated to the insurance underwriting process. In the second quarter of 2026, the Company completed the sale of Newins and recorded a gain in connection with the transaction. In the third quarter of 2025, a restructuring program was launched to achieve operational and organizational efficiencies. The Company will continue to evaluate additional efficiency opportunities through 2027. Debt Extinguishment and Other Charges relate to (i) loss from early extinguishment of debt, which is driven by the Company’s financing and refinancing decisions and capital needs, as well as external economic developments such as debt market conditions, the timing of which is unrelated to the insurance underwriting process; and (ii) other charges that are non-standard, not part of the ordinary course of business, and unrelated to the insurance underwriting process. Goodwill Impairments are excluded because they are infrequent and non-recurring charges. Non-Core Operations includes the results of our Preferred Insurance business which we expect to fully exit. These results are excluded because they are irrelevant to our ongoing operations and do not qualify for Discontinued Operations under GAAP. Significant non-recurring items are excluded because, by their nature, they are not indicative of the Company’s business or economic trends.
Previous wording
A reconciliation of Net (Loss) Income attributable to Kemper Corporation to Adjusted Consolidated Net Operating Income (a non-GAAP financial measure) for the three months ended March 31, 2026 and 2025 is presented below.
Current wording
A reconciliation of Net (Loss) Income attributable to Kemper Corporation to Adjusted Consolidated Net Operating Income (a non-GAAP financial measure) for the three and six months ended June 30, 2026 and 2025 is presented below.
Previous wording
Net Loss attributable to Kemper Corporation was $1.7 million ($(0.03) per unrestricted common share) for the three months ended March 31, 2026, compared to Net Income attributable to Kemper Corporation of $99.7 million ($1.56 per unrestricted common share) for the same period in 2025.
Current wording
Net Loss attributable to Kemper Corporation was $464.8 million, or $(7.90) per unrestricted common share, for the three months ended June 30, 2026, compared to Net Income attributable to Kemper Corporation of $72.6 million, or $1.13 per unrestricted common share, for the same period in 2025. Net (Loss) Income attributable to Kemper Corporation decreased by $537.4 million due primarily to a $460.0 million goodwill impairment related to the Specialty Property & Casualty Insurance segment, lower Adjusted Consolidated Net Operating Income and higher impairment losses.
Previous wording
The loss from Non-Core Operations increased by $3.3 million for the three months ended March 31, 2026, compared to the same period in 2025, primarily due to reduced earned premiums outpacing expense reductions as the business continues to run off, as well as higher adverse prior year development. Separately, on August 1, 2025, certain Non-Core Operations subsidiaries entered into a renewal rights agreement with a third party and certain of its affiliates (collectively, the “Third Party”) whereby the Third Party will offer replacement policies for certain policies written by these subsidiaries in New York in accordance with the state’s non-renewal rules. During the first quarter of 2026, these subsidiaries received regulatory approval from the New York Department of Financial Services for their withdrawal plans from the state.
Current wording
Income from Non-Core Operations increased by $4.6 million for the three months ended June 30, 2026 compared to the same period in 2025, primarily due to lower losses driven by the continued run-off of the business. Separately, on August 1, 2025, certain Non-Core Operations subsidiaries entered into a renewal rights agreement with a third party and certain of its affiliates (collectively, the “Third Party”) whereby the Third Party will offer replacement policies for certain policies written by these subsidiaries in New York in accordance with the state’s non-renewal rules. During the second quarter of 2026, these subsidiaries and the Third Party began execution of the agreement, based on having received regulatory approval from the New York Department of Financial Services during the first quarter of 2026.
Previous wording
Adjusted Consolidated Net Operating Income decreased by $93.9 million for the three months ended March 31, 2026, compared to the same period in 2025, due primarily to a deterioration in Specialty Personal Automobile’s Underlying loss and LAE ratio driven by higher claim severity and frequency on bodily injury and property damage coverages in California, lower business volumes, and a Florida Statutory Profit Limit Refund (as further discussed below), partially offset by higher average earned premium per exposure resulting from rate increases.
Current wording
Adjusted Consolidated Net Operating Income decreased by $151.7 million for the six months ended June 30, 2026, compared to the same period in 2025, due primarily to a deterioration in Specialty Personal Automobile’s Underlying loss and LAE ratio driven by higher claim severity and frequency on bodily injury coverages in California, lower business volumes, and a Florida Statutory Profit Limit Refund (as further discussed below).
Previous wording
Following the enactment of Florida insurance reform in 2023, the Company has experienced lower loss costs within its personal auto business, resulting in favorable loss reserve development and improved expected profitability for recent accident years. As of December 31, 2025, the Company concluded that it is probable Florida personal auto underwriting profit for the three most recent accident years ended December 31, 2025 will exceed the profit limitation established under Florida statute, and recorded a reduction to earned premiums representing its estimate of profits expected to be returned to policyholders. During the first quarter of 2026, the Company increased its estimate of profits expected to be returned to policyholders for the three most recent accident years ended December 31, 2025 by $11.0 million given favorable development through March 31, 2026. During the first quarter of 2026, the Company also concluded that it is probable underwriting profit for the subsequent three-year accident period (2024 through 2026) will exceed the applicable profit limitation and recorded a reduction to earned premiums of $17.0 million representing its estimate of profits expected to be returned to policyholders for that period. These actions resulted in a total reduction to earned premiums of $28.0 million for the quarter. The estimate for accident years 2024 through 2026 remains subject to changes based on future development through March 31, 2027. The statute requires that excess profits for accident years 2023 through 2025 be returned to policyholders active as of December 31, 2025, and the Company expects to do so.
Current wording
Following the enactment of Florida insurance reform in 2023, the Company has experienced lower loss costs within its personal auto business, resulting in favorable loss reserve development and improved expected profitability for recent accident years. As of December 31, 2025, the Company concluded that it is probable Florida personal auto underwriting profit for the three most recent accident years ended December 31, 2025 will exceed the profit limitation established under Florida statute, and recorded a reduction to earned premiums representing its estimate of profits expected to be returned to policyholders. During the first quarter of 2026, the Company increased its estimate of profits expected to be returned to policyholders for the three most recent accident years ended December 31, 2025 by $11.0 million given favorable development through March 31, 2026. During the first quarter of 2026, the Company also concluded that it is probable underwriting profit for the subsequent three-year accident period (2024 through 2026) will exceed the applicable profit limitation and recorded a reduction to earned premiums of $17.0 million representing its estimate of profits expected to be returned to policyholders for that period. These actions resulted in a total reduction to earned premiums of $28.0 million for the first quarter of 2026. During the second quarter of 2026, the Company increased its estimate of profits expected to be returned to policyholders for accident years 2024 through 2026 and recorded a $2.0 million reduction to earned premiums. The estimate for accident years 2024 through 2026 remains subject to changes based on future development through March 31, 2027. The statute requires that excess profits for accident years 2023 through 2025 be returned to policyholders active as of December 31, 2025, and the Company expects to do so.
Previous wording
Corporate and Other Adjusted Net Operating Loss decreased by $3.1 million for the three months ended March 31, 2026, compared to the same period in 2025, primarily driven by lower interest expense due to the redemption of $450 million of 4.350% senior notes in the first quarter of 2025.
Current wording
Corporate and Other Adjusted Net Operating Loss decreased by $4.4 million for the six months ended June 30, 2026 compared to the same period in 2025, primarily driven by lower interest expense due to the redemption of $450 million of 4.350% senior notes in the first quarter of 2025 and higher net investment income.
Previous wording
Total Revenues decreased by $85.8 million to $1,107.2 million for the three months ended March 31, 2026, compared to $1,193.0 million for the same period in 2025. The decrease was primarily driven by lower earned premiums.
Current wording
Total Revenues decreased by $132.9 million to $1,092.7 million for the three months ended June 30, 2026, compared to $1,225.6 million for the same period in 2025. The decrease was primarily driven by lower earned premiums and higher impairment losses, partially offset by higher net investment income.
Previous wording
Earned Premiums decreased by $88.6 million to $999.3 million for the three months ended March 31, 2026, compared to $1,087.9 million for the same period in 2025. This was primarily driven by a $77.0 million decrease from the Specialty Property & Casualty Insurance segment, mainly attributable to lower personal automobile volumes, a $28.0 million Florida Statutory Profit Limit Refund, and further impacted by a $12.7 million reduction from our Preferred Insurance business, reported as Non-Core Operations, due primarily to lower volumes resulting from the exit and run-off of the business. These decreases were partially offset by higher commercial automobile volumes within the Specialty Property & Casualty Insurance segment.
Current wording
Earned Premiums decreased by $119.2 million to $1,011.6 million for the three months ended June 30, 2026, compared to $1,130.8 for the same period in 2025, primarily driven by a $114.2 million decrease from the Specialty Property & Casualty Insurance segment, mainly attributable to lower personal automobile volumes, and further impacted by a $7.2 million reduction from the Preferred Insurance business, reported as Non-Core Operations, due primarily to lower volumes resulting from the exit and run-off of the business. These decreases were partially offset by higher commercial automobile volumes within the Specialty Property & Casualty Insurance segment.
Previous wording
Impairment losses increased by $2.0 million for the three months ended March 31, 2026, compared to the same period in 2025, primarily driven by an increase in the allowance for credit losses on fixed maturity securities.
Current wording
Impairment Losses increased by $20.1 million for the three months ended June 30, 2026, compared to the same period in 2025, primarily driven by a $21.0 million credit loss allowance recognized on the Reciprocal Exchange surplus notes.
Previous wording
Net Investment Income in the Specialty Property & Casualty Insurance segment increased by $4.8 million for the three months ended March 31, 2026, compared to the same period in 2025, due primarily to higher levels and yields from fixed maturity securities and increased earnings on alternative investments, partially offset by lower average short-term investments.
Current wording
Net Investment Income increased by $4.1 million for the three months ended June 30, 2026 compared to the same period in 2025, due primarily to higher levels and yields from fixed maturity securities and increased earnings on alternative investments, partially offset by lower average short-term investments.
Previous wording
Insurance Expenses were $196.2 million, or 22.2% of earned premiums, for the three months ended March 31, 2026, compared to $205.1 million, or 21.3% of earned premiums for the same period in 2025. Insurance Expenses decreased $8.9 million due to lower expenses associated with decreased business volumes.
Current wording
Insurance Expenses were $184.3 million, or 20.6% of earned premiums, for the three months ended June 30, 2026, compared to $214.8 million, or 21.3% of earned premiums for the same period in 2025. Insurance Expenses decreased $30.5 million due to lower expenses associated with decreased business volumes.
Previous wording
The Specialty Property & Casualty Insurance segment’s first quarter of 2026 effective income tax rate was 114.3% compared to 19.8% for the same period in 2025. The effective income tax rate for the first quarters of 2026 and 2025 differs from the federal statutory income tax rate primarily due to investments in Company-Owned Life Insurance, tax-exempt investment income and nondeductible stock and executive compensation. The difference in effective tax rates between the first quarters of 2026 and 2025 is primarily due to changes in pretax income.
Current wording
The Specialty Property & Casualty Insurance segment’s three months ended June 30, 2026 effective tax rate was 18.9% compared to 20.3% for the same period in 2025. The effective income tax rate for the second quarters of 2026 and 2025 differs from the federal statutory income tax rate due to investments in Company-Owned Life Insurance, tax-exempt investment income and nondeductible stock and executive compensation. The difference in effective tax rates between the second quarters of 2026 and 2025 is primarily due to changes in pretax income.
Previous wording
The Specialty Property & Casualty Insurance segment reported Total Segment Adjusted Net Operating Income of $0.1 million for the three months ended March 31, 2026, compared to Total Segment Adjusted Net Operating Income of $97.9 million for the same period in 2025. Segment adjusted net operating results decreased by $97.8 million, which included a $100.9 million decrease from personal automobile insurance and a $3.1 million increase from commercial vehicle insurance. The decrease in personal automobile Adjusted Net Operating Income was primarily driven by higher underlying losses resulting from higher claim severity and frequency in California, lower business volumes, as well as a $28.0 million Florida Statutory Profit Limit Refund, partially offset by higher average earned premiums per exposure resulting from rate increases. The increase in commercial automobile insurance Adjusted Net Operating Income was primarily driven by higher earned premium per exposure, partially offset by higher underlying losses and adverse prior year development.
Current wording
The Specialty Property & Casualty Insurance segment reported Total Segment Adjusted Net Operating Income of $15.9 million for the six months ended June 30, 2026, compared to Total Segment Adjusted Net Operating Income of $176.9 million for the same period in 2025. Segment adjusted net operating results decreased by $161.0 million, which included a $161.5 million decrease from personal automobile insurance and a $0.5 million increase from commercial automobile insurance. The decrease in personal automobile Adjusted Net Operating Income was primarily driven by higher underlying losses resulting from higher claim severity and frequency in California, lower business volumes, as well as a $30.0 million Florida Statutory Profit Limit Refund in the first half of 2026. The increase in commercial automobile insurance Adjusted Net Operating Income was primarily driven by higher earned premium per exposure, partially offset by higher underlying losses.
Previous wording
Earned Premiums in the Specialty Property & Casualty Insurance segment decreased by $77.0 million for the three months ended March 31, 2026, compared to the same period in 2025, due to lower personal automobile volumes and a $28.0 million Florida Statutory Profit Limit Refund, partially offset by higher commercial automobile volumes.
Current wording
Earned Premiums in the Specialty Property & Casualty Insurance segment decreased by $191.2 million for the six months ended June 30, 2026, compared to the same period in 2025, due to lower personal automobile volumes and a $30.0 million Florida Statutory Profit Limit Refund in the first half of 2026, partially offset by higher commercial automobile volumes.
Previous wording
Incurred losses and LAE were $747.7 million, or 84.5% of earned premiums for the three months ended March 31, 2026, compared to $686.8 million, or 71.4% of earned premiums, for the same period in 2025. Incurred losses and LAE as a percentage of earned premiums increased primarily due to a deterioration in the underlying loss and LAE ratio and adverse prior year development in commercial automobile, partially offset by favorable prior year development in personal automobile. Underlying losses and LAE as a percentage of earned premiums were 84.0% for the three months ended March 31, 2026, a deterioration of 13.1 percentage points, compared to the same period in 2025, due to higher claim severity and frequency primarily related to bodily injury and property damage coverages in California, partially offset by higher average earned premium per exposure (4.7% increase year over year). Underlying losses and LAE exclude the impact of catastrophes and loss and LAE reserve development. Adverse loss and LAE reserve development (including catastrophe reserve development) was $3.6 million for the three months ended March 31, 2026, compared to adverse development of $0.7 million for the same period in 2025, a deterioration of $2.9 million due primarily to evolving loss patterns on bodily injury coverages in commercial automobile. Catastrophe losses and LAE (excluding reserve development) were $1.3 million for the three months ended March 31, 2026 compared to $3.8 million for the same period in 2025, an improvement of $2.5 million due to fewer catastrophe events in 2026.
Current wording
Incurred Loss and LAE were $1,495.7 million or 83.9% of earned premiums for the six months ended June 30, 2026 compared to $1,436.2 million or 72.8% of earned premiums, for the same period in 2025. Incurred losses and LAE as a percentage of earned premiums increased primarily due to a deterioration in the underlying loss and LAE ratio. Underlying losses and LAE as a percentage of earned premiums were 82.8% for the six months ended June 30, 2026, a deterioration of 11.2 percentage points, compared to the same period in 2025 due to higher claim severity and frequency primarily related to bodily injury coverages in California, partially offset by higher average earned premium per exposure (3.0% increase year over year). Underlying losses and LAE exclude the impact of catastrophes and loss and LAE reserve development. Adverse loss and LAE reserve development (including catastrophe reserve development) was $12.8 million for the six months ended June 30, 2026, compared to adverse development of $14.7 million for the same period in 2025, an improvement of $1.9 million due primarily to development on personal injury protection and collision coverages in personal automobile, partially offset by loss patterns in bodily injury and higher losses associated with litigation matters. Catastrophe losses and LAE (excluding reserve development) were $7.4 million for the six months ended June 30, 2026 compared to $9.1 million for the same period in 2025, a decrease of $1.7 million due to fewer catastrophe events in 2026.
Previous wording
Earned Premiums on personal automobile insurance decreased by $106.7 million for the three months ended March 31, 2026, compared to the same period in 2025, primarily due to lower volumes and a $28.0 million Florida Statutory Profit Limit Refund. Incurred losses and LAE were $566.7 million, or 87.6% of earned premiums for the three months ended March 31, 2026, compared to $526.5 million, or 69.9% of earned premiums, for the same period in 2025. Incurred losses and LAE as a percentage of earned premiums increased due to a deterioration in the underlying loss and LAE ratio. Underlying losses and LAE as a percentage of related earned premiums were 87.7% for the three months ended March 31, 2026, compared to 70.1% for the same period in 2025, a deterioration of 17.6 percentage points. The deterioration was driven by higher claim severity and frequency, primarily related to bodily injury and property damage coverages in California, and the Florida Statutory Profit Limit Refund, partially offset by higher average earned premium per exposure (3.3% increase year over year). Favorable loss and LAE reserve development was $2.5 million for the three months ended March 31, 2026, compared to favorable development of $4.6 million for the same period in 2025, a deterioration of $2.1 million due primarily to loss patterns in bodily injury and higher losses associated with litigation matters, partially offset by development on personal injury protection and collision coverages. Catastrophe losses and LAE (excluding reserve development) were $1.1 million for the three months ended March 31, 2026, compared to $2.7 million for the same period in 2025, an improvement of $1.6 million due to fewer catastrophe events in 2026.
Current wording
Earned Premiums on personal automobile insurance decreased by $141.9 million for the three months ended June 30, 2026, compared to the same period in 2025, primarily due to lower volumes. Incurred losses and LAE were $539.6 million, or 83.3% of earned premiums for the three months ended June 30, 2026, compared to $571.3 million, or 72.4% of earned premiums, for the same period in 2025. Incurred losses and LAE as a percentage of earned premiums increased due to a deterioration in the underlying loss and LAE ratio. Underlying losses and LAE as a percentage of related earned premiums were 83.8% for the three months ended June 30, 2026, compared to 72.5% for the same period in 2025, a deterioration of 11.3 percentage points. The deterioration was driven by higher claim severity and frequency, primarily related to bodily injury coverages in California. Prior year favorable loss and LAE reserve development was $8.6 million for the three months ended June 30, 2026, compared to $4.7 million for the same period in 2025, an improvement of $3.9 million due primarily to development on personal injury protection and collision coverages, partially offset by loss patterns in bodily injury and higher losses associated with litigation matters. Catastrophe losses and LAE (excluding reserve development) were $5.1 million for the three months ended June 30, 2026, compared to $4.3 million for the same period in 2025, a deterioration of $0.8 million due to increased severity of catastrophe events in 2026.
Previous wording
Earned Premiums from commercial automobile insurance increased by $29.7 million for the three months ended March 31, 2026, compared to the same period in 2025, due primarily to higher average earned premium per exposure, targeted mix shifts, and higher business volumes. Incurred losses and LAE were $181.0 million, or 76.0% of earned premiums in 2026, compared to $160.3 million, or 76.9% of earned premiums in 2025. Incurred losses and LAE as a percentage of earned premiums decreased primarily due to an improvement in the underlying loss and LAE ratio. Underlying losses and LAE as a percentage of earned premiums were 73.3% for the three months ended March 31, 2026, compared to 73.9% during the same time period in 2025, an improvement of 0.6 percentage points driven by higher average earned premium per exposure (2.5% increase year over year), partially offset by higher claim frequency and severity, primarily related to bodily injury coverages. Adverse loss and LAE reserve development was $6.1 million for the three months ended March 31, 2026, compared to adverse development of $5.3 million for the same period in 2025, a deterioration of $0.8 million due primarily to evolving loss patterns and higher defense costs associated with attorney-represented bodily injury coverages. Catastrophe losses and LAE (excluding reserve development) were $0.2 million for the three months ended March 31, 2026 compared to $1.1 million for the same period in 2025, a decrease of $0.9 million due to fewer catastrophic events in 2026.
Current wording
Earned Premiums on commercial automobile insurance increased by $27.7 million for the three months ended June 30, 2026, compared to the same period in 2025, due primarily to higher average earned premium per exposure, targeted mix shifts, and higher business volumes. Incurred losses and LAE were $208.4 million, or 83.6% of earned premiums in 2026, compared to $178.1 million, or 80.4% of earned premiums in 2025. Incurred losses and LAE as a percentage of earned premiums increased primarily due to a deterioration in the underlying loss and LAE ratio. Underlying losses and LAE as a percentage of earned premiums were 76.1% in the three months ended June 30, 2026, compared to 71.5% during the same period in 2025, a deterioration of 4.6 percentage points driven by higher claim severity and frequency, primarily related to bodily injury coverages, partially offset by higher average earned premium per exposure (1.6% increase year over year). Adverse loss and LAE reserve development was $17.8 million for the three months ended June 30, 2026, compared to adverse development of $18.7 million for the same period in 2025, a decrease of $0.9 million. Catastrophe losses and LAE (excluding reserve development) were $1.0 million for the three months ended June 30, 2026 and 2025, respectively.
Previous wording
Earned Premiums increased $1.1 million for the three months ended March 31, 2026, compared to the same period in 2025, due primarily to higher average premiums per policy on life insurance products.
Current wording
Earned Premiums increased by $2.2 million for the three months ended June 30, 2026, compared to the same period in 2025, due primarily to higher average premiums per policy on life insurance products.
Previous wording
Insurance Expenses decreased by $1.8 million for the three months ended March 31, 2026, compared to the same period in 2025, due to management actions to lower operating expenses and lower commission expense.
Current wording
Insurance Expenses decreased by $0.4 million for the three months ended June 30, 2026, compared to the same period in 2025, due to management actions to lower operating expenses and lower commission expense.
Previous wording
The Life Insurance segment’s first quarter 2026 effective income tax rate was 15.2% compared to 15.0% for the same period in 2025. The effective income tax rate for the first quarters of 2026 and 2025 differs from the federal statutory income tax rate primarily due to investments in Company-Owned Life Insurance, tax-exempt investment income and nondeductible stock and executive compensation. The increase in the effective tax rate from the first quarter of 2025 is primarily due to an increase in pretax income, partially offset by an increase in tax benefits from Company-Owned Life Insurance.
Current wording
The Life Insurance segment’s three months ended June 30, 2026 effective income tax rate was 15.1% compared to 12.7% for the same period in 2025. The effective income tax rate for the second quarters of 2026 and 2025 differs from the federal statutory income tax rate primarily due to investments in Company-Owned Life Insurance, tax-exempt investment income and nondeductible stock and executive compensation. The increase in the effective tax rate from the three months ended June 30, 2025 is primarily due to an increase in pretax income and an increase in tax expense related to nondeductible stock and executive compensation, partially offset by an increase in tax benefits from Company-Owned Life Insurance.
Previous wording
The Life Insurance segment reported Total Segment Adjusted Net Operating Income of $18.0 million for the three months ended March 31, 2026, compared to $17.2 million for the same period in 2025. The increase in segment net operating results was due primarily to lower Insurance Expenses and higher Earned Premiums, partially offset by higher Policyholders’ Benefits from life insurance products.
Current wording
The Life Insurance segment reported Total Segment Adjusted Net Operating Income of $36.3 million for the six months ended June 30, 2026, compared to $29.8 million for the same period in 2025. The increase in segment net operating results was due primarily to higher Net Investment Income, higher Earned Premiums, and lower Insurance Expenses, partially offset by higher Policyholders’ Benefits from life insurance products.
Previous wording
Net investment income increased by $0.3 million for the three months ended March 31, 2026, compared to the same period in 2025, due primarily to increased earnings on alternative investments and higher earnings on Company-Owned Life Insurance, partially offset by lower yields on fixed maturities.
Current wording
Net Investment Income increased by $4.9 million for the six months ended June 30, 2026, compared to the same period in 2025, due primarily to increased earnings on alternative investments and higher earnings on Company-Owned Life Insurance, partially offset by lower yields on fixed maturities.
Previous wording
Policyholders’ Benefits and Incurred Losses and LAE increased by $1.8 million for the three months ended March 31, 2026, compared to the same period in 2025, due to an increase in insurance reserves related to favorable changes in mortality experience.
Current wording
Policyholders’ Benefits and Incurred Losses and LAE increased by $1.8 million for the six months ended June 30, 2026, compared to the same period in 2025, due to an increase in insurance reserves related to favorable changes in mortality experience.
Previous wording
Net Investment Income for the three months ended March 31, 2026 and 2025 is presented below:
Current wording
Net Investment Income for the three and six months ended June 30, 2026 and 2025 is presented below:
Previous wording
Unrealized losses on investments increased $89.5 million for the three months ended March 31, 2026, primarily due to increases in interest rates.
Current wording
Unrealized losses on investments decreased $50.9 million for the three months ended June 30, 2026 and increased $38.6 million for the six months ended June 30, 2026, driven by changes in interest rates.
Previous wording
The components of Change in Fair Value of Equity and Convertible Securities for the three months ended March 31, 2026 and 2025 are presented below:
Current wording
The components of Change in Fair Value of Equity and Convertible Securities for the three and six months ended June 30, 2026 and 2025 are presented below:
Previous wording
Net Realized Gains on Sales of Investments
Current wording
Net Realized Gains (Losses) on Sales of Investments
Previous wording
The components of Net Realized Investment Gains for the three months ended March 31, 2026 and 2025 are presented below:
Current wording
The components of Net Realized Investment Gains (Losses) for the three and six months ended June 30, 2026 and 2025 are presented below:
Previous wording
The components of Impairment Losses in the Condensed Consolidated Statements of (Loss) Income for the three months ended March 31, 2026 and 2025 were:
Current wording
The components of Impairment Losses in the Condensed Consolidated Statements of (Loss) Income for the three and six months ended June 30, 2026 and 2025 were:
Previous wording
The Company’s fixed maturity investment portfolio is comprised primarily of high-grade corporate, municipal and agency bonds. At March 31, 2026, approximately 93.5% of the Company’s fixed maturity investment portfolio was rated investment-grade, which the Company defines as a security issued by a high quality obligor with at least a relatively stable credit profile and where it is highly likely that all contractual payments of principal and interest will timely occur and carry a rating from the National Association of Insurance Commissioners (“NAIC”) of 1 or 2. Securities with a rating of 1 or 2 from the NAIC typically are rated by one or more Nationally Recognized Statistical Rating Organizations and either have a rating of AAA, AA, A or BBB from Standard & Poor’s (“S&P”); a rating of Aaa, Aa, A or Baa from Moody’s Investors Service (“Moody’s”); or a rating of AAA, AA, A or BBB from Fitch Ratings.
Current wording
The Company’s fixed maturity investment portfolio is comprised primarily of high-grade corporate, municipal and agency bonds. At June 30, 2026, approximately 93.3% of the Company’s fixed maturity investment portfolio was rated investment-grade, which the Company defines as a security issued by a high quality obligor with at least a relatively stable credit profile and where it is highly likely that all contractual payments of principal and interest will timely occur and carry a rating from the National Association of Insurance Commissioners (“NAIC”) of 1 or 2. Securities with a rating of 1 or 2 from the NAIC typically are rated by one or more Nationally Recognized Statistical Rating Organizations and either have a rating of AAA, AA, A or BBB from Standard & Poor’s (“S&P”); a rating of Aaa, Aa, A or Baa from Moody’s Investors Service (“Moody’s”); or a rating of AAA, AA, A or BBB from Fitch Ratings.
Previous wording
Gross unrealized losses on the Company’s investments in below-investment-grade fixed maturities were $18.5 million and $13.6 million at March 31, 2026 and December 31, 2025, respectively.
Current wording
Gross unrealized losses on the Company’s investments in below-investment-grade fixed maturities were $11.6 million and $13.6 million at June 30, 2026 and December 31, 2025, respectively.
Previous wording
The Company’s short-term investments primarily consist of money market funds, U.S. Treasury bills and short-term bonds. At March 31, 2026, the Company had $294.8 million invested in money market funds, which primarily invest in U.S. Treasury securities, and $1.8 million invested in U.S. Treasury bills and short-term bonds.
Current wording
The Company’s short-term investments primarily consist of money market funds, U.S. Treasury bills and short-term bonds. At June 30, 2026, the Company had $198.5 million invested in money market funds, which primarily invest in U.S. Treasury securities, and $72.9 million invested in U.S. Treasury bills and short-term bonds.
Previous wording
Expenses for the three months ended March 31, 2026 and 2025 were:
Current wording
Expenses for the three and six months ended June 30, 2026 and 2025 were:
Previous wording
Insurance Expenses were $268.3 million in 2026, compared to $286.1 million in 2025. Policy acquisition costs decreased $11.6 million compared to the same period in 2025, primarily driven by reduced business volumes in the Specialty Property & Casualty Insurance segment. Business unit operating costs decreased $5.9 million compared to the same period in 2025, primarily due to lower expenses within the Non-Core Operations as the business continues to run off.
Current wording
Business unit operating costs decreased by $12.8 million and $18.7 million for the three and six months ended June 30, 2026, respectively, compared to the same periods in 2025, primarily due to lower expenses in the Specialty Property & Casualty Insurance Segment resulting from lower business volumes. Additionally, expenses in Non-Core Operations decreased as the business continued to run off.
Previous wording
Interest expense decreased by $2.1 million for the three months ended March 31, 2026, compared to the same period in 2025, primarily due to redemption of $450 million of 4.350% senior notes.
Current wording
Interest Expense decreased by $2.2 million for the six months ended June 30, 2026, compared to the same period in 2025, primarily due to the redemption of $450 million of 4.350% senior notes in the first quarter of 2025.
Previous wording
The federal corporate statutory income tax rate was 21% for the three months ended March 31, 2026 and March 31, 2025. The Company’s effective income tax rate, which was 44.6% and 19.1% for the three months ended March 31, 2026 and 2025, respectively, differs from the federal corporate income tax rate due primarily to (1) the effects of tax-exempt investment income, (2) nontaxable income associated with the change in cash surrender value on Company-Owned Life Insurance, (3) general business tax credits, (4) a permanent difference between the amount of long-term equity-based compensation expense recognized under GAAP and the amount deductible for Federal tax purposes, (5) a permanent difference associated with nondeductible executive compensation, (6) impact of deferred taxes in foreign jurisdictions, and (7) a change in valuation allowance related to foreign deferred tax assets.
Current wording
The federal corporate statutory income tax rate was 21% for the six months ended June 30, 2026 and June 30, 2025. The Company’s effective income tax rate, which was 0.2% and 20.2% for the three months ended June 30, 2026 and 2025, respectively, and 1.0% and 19.6% for the six months ended June 30, 2026 and 2025, respectively, differs from the federal corporate income tax rate due primarily to (1) nondeductible goodwill impairment, (2) tax-exempt investment income, (3) nontaxable income associated with the change in cash surrender value on Company-Owned Life Insurance, (4) general business tax credits, (5) a permanent difference between the amount of long-term equity-based compensation expense recognized under GAAP and the amount deductible for Federal tax purposes, (6) nondeductible executive compensation, (7) impact of deferred taxes in foreign jurisdictions, and (8) a change in valuation allowance related to foreign deferred tax assets.
Previous wording
Tax-exempt investment income and dividends received deductions were $3.6 million for the three months ended March 31, 2026, compared to $3.8 million for the same period in 2025.
Current wording
Tax-exempt investment income and dividends received deductions were $3.5 million for the three months ended June 30, 2026, compared to $3.9 million for the same period in 2025. Tax-exempt investment income and dividends received deductions were $7.1 million for the six months ended June 30, 2026, compared to $7.7 million for the same period in 2025.
Previous wording
The nontaxable increase in cash surrender value on Company-Owned Life Insurance was $11.6 million for the three months ended March 31, 2026, compared to $10.2 million for the same period in 2025.
Current wording
The nontaxable increase in cash surrender value on Company-Owned Life Insurance was $11.9 million for the three months ended June 30, 2026, compared to $10.5 million for the same period in 2025. The nontaxable increase in cash surrender value on Company-Owned Life Insurance was $23.5 million for the six months ended June 30, 2026, compared to $20.7 million for the same period in 2025.
Showing the first 40 of 58 pairs. Open the source sections for the rest.
Rearranged current paragraphs (9)
Current report — wording carried from elsewhere
Adjusted Consolidated Net Operating Income decreased by $57.8 million for the three months ended June 30, 2026, compared to the same period in 2025, due primarily to a deterioration in Specialty Personal Automobile’s Underlying loss and LAE ratio driven by higher claim severity and frequency on bodily injury coverages in California and lower business volumes.
Current report — wording carried from elsewhere
Corporate and Other Adjusted Net Operating Loss decreased by $1.3 million for the three months ended June 30, 2026 compared to the same period in 2025, primarily driven by higher net investment income.
Current report — wording carried from elsewhere
Earned Premiums decreased by $207.8 million to $2,010.9 million for the six months ended June 30, 2026, compared to $2,218.7 for the same period in 2025, primarily driven by a $191.2 million decrease from the Specialty Property & Casualty Insurance segment, mainly attributable to lower personal automobile volumes, a $30.0 million Florida Statutory Profit Limit Refund in the first half of 2026, and further impacted by a $19.9 million reduction from the Preferred Insurance business, reported as Non-Core Operations, due primarily to lower volumes resulting from the exit and run-off of the business. These decreases were partially offset by higher commercial automobile volumes within the Specialty Property & Casualty Insurance segment.
Current report — wording carried from elsewhere
The Specialty Property & Casualty Insurance segment reported Total Segment Adjusted Net Operating Income of $15.8 million for the three months ended June 30, 2026, compared to $79.0 million for the same period in 2025. Segment adjusted net operating results decreased by $63.2 million, which included a $60.6 million decrease from personal automobile insurance and a $2.6 million decrease from commercial automobile insurance. The decrease in personal automobile Adjusted Net Operating Income was primarily driven by higher underlying losses resulting from higher claim severity and frequency in California and lower business volumes. The decrease in commercial automobile insurance Adjusted Net Operating Income was primarily driven by higher underlying losses resulting from higher claim severity and frequency, partially offset by higher business volumes.
Current report — wording carried from elsewhere
Insurance Expenses were $380.5 million, or 21.4% of earned premiums, for the six months ended June 30, 2026, compared to $419.9 million, or 21.3% of earned premiums for the same period in 2025. Insurance Expenses decreased $39.4 million due to lower expenses associated with decreased business volumes.
Current report — wording carried from elsewhere
Net Investment Income increased by $4.6 million for the three months ended June 30, 2026, compared to the same period in 2025, due primarily to increased earnings on alternative investments.
Current report — wording carried from elsewhere
Policyholders’ Benefits and Incurred Losses and LAE were flat for the three months ended June 30, 2026, compared to the same period in 2025, due to lower Incurred Losses and LAE on property insurance products offset by an increase in insurance reserves related to favorable changes in mortality experience.
Current report — wording carried from elsewhere
Earned Premiums increased by $3.3 million for the six months ended June 30, 2026, compared to the same period in 2025, due primarily to higher average premiums per policy on life insurance products.
Current report — wording carried from elsewhere
Insurance Expenses decreased by $2.2 million for the six months ended June 30, 2026, compared to the same period in 2025, due to management actions to lower operating expenses and lower commission expense.
Rearranged previous paragraphs (2)
Previous report — wording carried elsewhere
Net (Loss) Income attributable to Kemper Corporation decreased by $101.4 million for the three months ended March 31, 2026, compared to the same period in 2025, due primarily to lower Adjusted Consolidated Net Operating Income.
Previous report — wording carried elsewhere
Subsequently, on May 4, 2026, the Company reduced the borrowing capacity under the credit agreement from $600.0 million to $350.0 million in accordance with terms of the agreement. The accordion feature remains unchanged and permits the Company to increase total borrowing capacity up to $550.0 million.