KEMPER Corp
For the period ended Sep 30, 2026. Filed Nov 9, 2026.
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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.
Sep 30, 2026 · Filed Nov 9, 2026
KMPR$33.15-0.7%Stored close · as of Nov 9, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious 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 OperationsCurrent report: 10-Q
Period ended 2026-09-30; filed 2026-11-09.
0000860748-26-000103
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 175 previous paragraphs and 181 current paragraphs.
83 unchanged; 77 reworded; 19 added; 12 removed; 3 previous and 2 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 (19)
Current report
(ii) Net Realized Investment (Losses) Gains;
Current report
Net Income (Loss) attributable to Kemper Corporation
Current report
Adjusted Consolidated Net Operating Income increased by $39.5 million for the three months ended September 30, 2026, compared to the same period in 2025, due primarily to favorable prior year development in Specialty Personal Automobile. The increase was also driven by lower adverse prior year development in Specialty Commercial Automobile, partially offset by higher underlying losses resulting primarily from higher claim severity.
Current report
Net Investment Income increased by $2.5 million to $107.3 million for the three months ended September 30, 2026, compared to $104.8 million for the same period in 2025, primarily driven by higher yields from Company-Owned Life Insurance.
Current report
Net Investment Income increased by $17.9 million to $319.8 million for the nine months ended September 30, 2026, compared to $301.9 million for the same period in 2025, primarily driven by increased earnings on alternative investments and higher levels and yields from fixed maturity securities and Company-Owned Life Insurance, partially offset by lower average Short-term invested assets.
Current report
Earned Premiums increased by $15.9 million for the three months ended September 30, 2026, compared to the same period in 2025, due primarily to increases from model adjustments impacting the deferred profit liability, partially offset by decreases from the annual assumption update (combined $12.6 million increase in Earned Premiums) as compared to the same period in 2025. In 2026, the Company changed its annual assumption update from the fourth quarter to the third quarter to better align with its annual planning process and industry practice. Excluding the impacts from model adjustments and the annual assumption update, Earned Premiums increased by $3.3 million primarily driven by higher new business volume on life insurance products.
Current report
Net Investment Income increased by $1.9 million for the three months ended September 30, 2026, compared to the same period in 2025, due primarily to higher yields on Company-Owned Life Insurance.
Current report
Insurance Expenses increased by $2.3 million for the three months ended September 30, 2026, compared to the same period in 2025, due to higher operating expenses primarily from personnel costs and higher commission expense on sales of life insurance products.
Current report
Earned Premiums increased by $19.2 million for the nine months ended September 30, 2026, compared to the same period in 2025, due primarily to increases from model adjustments impacting the deferred profit liability, partially offset by decreases from the annual assumption update (combined $12.6 million increase in Earned Premiums) as compared to the same period in 2025. Excluding the impacts from model adjustments and the annual assumption update, Earned Premiums increased by $6.6 million primarily driven by higher new business volume on life insurance products.
Current report
Policyholders’ Benefits and Incurred Losses and LAE increased by $16.3 million for the nine months ended September 30, 2026, compared to the same period in 2025, due primarily to increases from model adjustments, partially offset by decreases from the annual assumption update (combined $10.9 million increase in Life Policyholders’ Benefits) as compared to the same period in 2025. Excluding the impacts from model adjustments and the annual assumption update, Policyholders’ Benefits and Incurred Losses and LAE increased by $5.4 million, due to an increase in insurance reserves primarily driven by changes in mortality experience.
Current report
Insurance Expenses increased by $0.1 million for the nine months ended September 30, 2026, compared to the same period in 2025.
Current report
The Life Insurance segment’s effective income tax rate was 14.5% for the nine months ended September 30, 2026 and 2025, respectively. The effective income tax rate for the nine months ended September 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.
Current report
Net Investment Income for the three and nine months ended September 30, 2026 and 2025 is presented below:
Current report
Net Investment Income increased by $2.5 million for the three months ended September 30, 2026, compared to the same period in 2025, primarily driven by higher yields from Company-Owned Life Insurance.
Current report
Net Investment Income increased by $17.9 million for the nine months ended September 30, 2026, compared to the same period in 2025, primarily driven by increased earnings on alternative investments and higher levels and yields from fixed maturity securities and Company-Owned Life Insurance, partially offset by lower average Short-term invested assets.
Current report
Insurance and Other Expenses decreased by $74.2 million and $119.3 million for the three and nine months ended September 30, 2026, respectively, compared to the same periods in 2025, primarily driven by lower Policy Acquisition Costs, Business Unit Operating Costs and Other Expenses.
Current report
On August 13, 2025, the Company entered into an accelerated share repurchase agreement (the “ASR Agreement”) with Goldman Sachs & Co. LLC (“Goldman Sachs”) to repurchase an aggregate of $150.0 million of shares of the Company’s common stock. Under the terms of the ASR Agreement, the Company made a payment of $150.0 million to Goldman Sachs, and on August 14, 2025, received initial deliveries of an aggregate of 2,279,000 shares of the Company’s common stock, or approximately 80% of the total shares that are expected to be repurchased under the ASR Agreement, based on the closing price on August 13, 2025 of $52.65 per share.
Current report
On October 13, 2025, as final settlement of the share repurchase transaction under the ASR Agreement, the Company received from Goldman Sachs approximately 615,000 shares of the Company’s common stock. In total, the Company repurchased 2,894,000 shares of its Common Stock under the ASR Agreement at $51.84 per share, which represents the volume-weighted average market price of the Company’s common stock during the term of the ASR Agreement less a customary discount. The shares delivered were immediately retired.
Current report
Critical Accounting Estimates (Continued)
Removed paragraphs (12)
Previous report
(ii) Net Realized Investment Gains (Losses);
Previous 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.
Previous 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.
Previous report
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 report
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.
Previous report
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 report
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.
Previous report
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.
Previous 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.
Previous report
Net Investment Income for the three and six months ended June 30, 2026 and 2025 is presented below:
Previous 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.
Previous 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.
Reworded paragraphs (77)
Previous wording
The Company believes that the non-GAAP financial measure of Adjusted Consolidated Net Operating Income provides investors with a valuable measure of its ongoing performance because it reveals underlying operational performance trends that otherwise might be less apparent if the items were not excluded. The most directly comparable GAAP financial measure is Net (Loss) Income attributable to Kemper Corporation.
Current wording
The Company believes that the non-GAAP financial measure of Adjusted Consolidated Net Operating Income provides investors with a valuable measure of its ongoing performance because it reveals underlying operational performance trends that otherwise might be less apparent if the items were not excluded. The most directly comparable GAAP financial measure is Net Income (Loss) attributable to Kemper Corporation.
Previous wording
Adjusted Consolidated Net Operating Income is an after-tax, non-GAAP financial measure and is computed by excluding from Net (Loss) Income attributable to Kemper Corporation the after-tax impact of:
Current wording
Adjusted Consolidated Net Operating Income is an after-tax, non-GAAP financial measure and is computed by excluding from Net Income (Loss) attributable to Kemper Corporation the after-tax impact of:
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 and six months ended June 30, 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 nine months ended September 30, 2026 or 2025.
Previous 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.
Current wording
Change in Fair Value of Equity and Convertible Securities, Net Realized Investment (Losses) 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 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 and six months ended June 30, 2026 and 2025 is presented below.
Current wording
A reconciliation of Net Income (Loss) attributable to Kemper Corporation to Adjusted Consolidated Net Operating Income (a non-GAAP financial measure) for the three and nine months ended September 30, 2026 and 2025 is presented below.
Previous wording
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 wording
Net Income attributable to Kemper Corporation was $52.4 million, or $0.89 per unrestricted common share, for the three months ended September 30, 2026, compared to Net Loss attributable to Kemper Corporation of $21.0 million, or $(0.34) per unrestricted common share, for the same period in 2025. Net Income attributable to Kemper Corporation increased by $73.4 million due primarily to higher Adjusted Consolidated Net Operating Income, higher income from Non-Core Operations and lower Acquisition and Disposition Related Transaction, Integration, Restructuring and Other Costs.
Previous 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.
Current wording
Income from Non-Core Operations increased by $20.8 million for the three months ended September 30, 2026 compared to the same period in 2025, primarily due to $21.7 million of impairment losses recognized on Internal-Use Software assets in the prior year period. 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
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 wording
Corporate and Other Adjusted Net Operating Loss increased by $4.0 million for the three months ended September 30, 2026 compared to the same period in 2025, primarily driven by lower net investment income.
Previous 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.
Current wording
Net Loss attributable to Kemper Corporation was $414.1 million, or $(7.04) per unrestricted common share, for the nine months ended September 30, 2026, compared to Net Income attributable to Kemper Corporation of $151.3 million, or $2.40 per unrestricted common share, for the same period in 2025. Net (Loss) Income attributable to Kemper Corporation decreased by $565.4 million due primarily to a $460.0 million goodwill impairment related to the Specialty Property & Casualty Insurance segment in the second quarter of 2026 and lower Adjusted Consolidated Net Operating Income.
Previous 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).
Current wording
Adjusted Consolidated Net Operating Income decreased by $112.2 million for the nine months ended September 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 a Florida Statutory Profit Limit Refund (as further discussed below), partially offset by favorable prior year development in the Specialty Property & Casualty Insurance segment.
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 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.
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 and third quarters of 2026, the Company increased its estimate of profits expected to be returned to policyholders for accident years 2024 through 2026 and recorded a reduction to earned premiums of $2.0 million and $10.0 million, respectively. 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
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 wording
The loss from Non-Core Operations decreased by $22.1 million for the nine months ended September 30, 2026 compared to the same period in 2025, primarily due to $21.7 million of impairment losses recognized on Internal-Use Software assets in the prior year period.
Previous 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.
Current wording
Corporate and Other Adjusted Net Operating Loss decreased by $0.4 million for the nine months ended September 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, partially offset by lower net investment income.
Previous wording
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 wording
Total Revenues decreased by $149.1 million to $1,090.6 million for the three months ended September 30, 2026, compared to $1,239.7 million for the same period in 2025. The decrease was primarily driven by lower earned premiums.
Previous 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.
Current wording
Earned Premiums decreased by $149.9 million to $983.4 million for the three months ended September 30, 2026, compared to $1,133.3 million for the same period in 2025, primarily driven by a $159.4 million decrease from the Specialty Property & Casualty Insurance segment, mainly attributable to lower personal automobile volumes. These decreases were partially offset by higher commercial automobile volumes within the Specialty Property & Casualty Insurance segment.
Previous wording
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 wording
Impairment Losses increased by $0.6 million for the three months ended September 30, 2026, compared to the same period in 2025, primarily driven by an increase in the allowance for credit losses on fixed maturity securities.
Previous 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.
Current wording
Total Revenues decreased by $367.8 million to $3,290.5 million for the nine months ended September 30, 2026, compared to $3,658.3 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 $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 wording
Earned Premiums decreased by $357.7 million to $2,994.3 million for the nine months ended September 30, 2026, compared to $3,352.0 million for the same period in 2025, primarily driven by a $350.6 million decrease from the Specialty Property & Casualty Insurance segment, mainly attributable to lower personal automobile volumes, a $40.0 million Florida Statutory Profit Limit Refund in the first nine months of 2026, and further impacted by a $26.3 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 $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.
Current wording
Impairment Losses increased by $22.7 million for the nine months ended September 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 in the second quarter of 2026.
Previous wording
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 wording
The Specialty Property & Casualty Insurance segment reported Total Segment Adjusted Net Operating Income of $54.4 million for the three months ended September 30, 2026, compared to $7.6 million for the same period in 2025. Segment adjusted net operating results increased by $46.8 million, which included a $24.6 million increase from personal automobile insurance and a $22.2 million increase from commercial automobile insurance. The increase in personal automobile Adjusted Net Operating Income was primarily driven by favorable prior year development. The increase in commercial automobile insurance Adjusted Net Operating Income was primarily driven by lower adverse prior year development, partially offset by higher underlying losses resulting primarily from higher claim severity on bodily injury coverages.
Previous wording
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 wording
Earned Premiums in the Specialty Property & Casualty Insurance segment decreased by $159.4 million for the three months ended September 30, 2026, compared to the same period in 2025, primarily due to lower personal automobile volumes, partially offset by higher commercial automobile volumes.
Previous 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.
Current wording
Net Investment Income increased by $4.7 million for the three months ended September 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.
Previous wording
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 wording
Incurred Loss and LAE were $670.7 million or 78.2% of earned premiums for the three months ended September 30, 2026 compared to $851.1 million or 83.7% of earned premiums, for the same period in 2025. Incurred losses and LAE as a percentage of earned premiums decreased primarily due to favorable prior year development partially offset by a deterioration in the current year underlying loss and LAE ratio. Underlying losses and LAE as a percentage of earned premiums were 80.7% for the three months ended September 30, 2026, a deterioration of 2.2 percentage points, compared to the same period in 2025, due to higher claim severity primarily related to bodily injury coverages in California. Underlying losses and LAE exclude the impact of catastrophes and loss and LAE reserve development. Favorable loss and LAE reserve development (including catastrophe reserve development) was $23.2 million for the three months ended September 30, 2026, compared to adverse development of $51.4 million for the same period in 2025, an improvement of $74.6 million, due primarily to favorable development on bodily injury and physical damage coverages in personal automobile and lower adverse prior year development on bodily injury coverages in commercial automobile. Catastrophe losses and LAE (excluding reserve development) were $2.0 million for the three months ended September 30, 2026 compared to $1.0 million for the same period in 2025, a deterioration of $1.0 million.
Previous 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.
Current wording
Insurance Expenses were $180.2 million, or 21.0% of earned premiums, for the three months ended September 30, 2026, compared to $214.6 million, or 21.1% of earned premiums for the same period in 2025. Insurance Expenses decreased $34.4 million due to lower expenses associated with decreased business volumes.
Previous 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.
Current wording
The Specialty Property & Casualty Insurance segment’s three months ended September 30, 2026 effective tax rate was 18.2% compared to 3.1% for the same period in 2025. The effective income tax rate for the third 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 third 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 $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.
Current wording
The Specialty Property & Casualty Insurance segment reported Total Segment Adjusted Net Operating Income of $70.3 million for the nine months ended September 30, 2026, compared to $184.5 million for the same period in 2025. Segment adjusted net operating results decreased by $114.2 million, which included a $136.9 million decrease from personal automobile insurance and a $22.7 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 and a $40.0 million Florida Statutory Profit Limit Refund, partially offset by favorable prior year development. The increase in commercial automobile insurance Adjusted Net Operating Income was primarily driven by lower adverse prior year development.
Previous 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.
Current wording
Earned Premiums in the Specialty Property & Casualty Insurance segment decreased by $350.6 million for the nine months ended September 30, 2026, compared to the same period in 2025, due to lower personal automobile volumes and $40.0 million for the Florida Statutory Profit Limit Refund, partially offset by higher commercial automobile volumes.
Previous wording
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 wording
Net Investment Income increased by $13.6 million for the nine months ended September 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.
Previous 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.
Current wording
Incurred Loss and LAE were $2,166.4 million or 82.1% of earned premiums for the nine months ended September 30, 2026 compared to $2,287.3 million or 76.5% 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 partially offset by favorable prior year development. Underlying losses and LAE as a percentage of earned premiums were 82.1% for the nine months ended September 30, 2026, a deterioration of 8.1 percentage points, compared to the same period in 2025 due to higher claim severity and frequency primarily related to bodily injury coverages in California and the Florida Statutory Profit Limit Refund impact to earned premiums, partially offset by higher average earned premium per exposure in commercial automobile (2.0% increase year over year). Underlying losses and LAE exclude the impact of catastrophes and loss and LAE reserve development. Favorable loss and LAE reserve development (including catastrophe reserve development) was $10.4 million for the nine months ended September 30, 2026, compared to adverse development of $66.1 million for the same period in 2025, an improvement of $76.5 million due primarily to favorable development on bodily injury and physical damage coverages in personal automobile and lower adverse prior year development on bodily injury coverages in commercial automobile. Catastrophe losses and LAE (excluding reserve development) were $9.4 million for the nine months ended September 30, 2026 compared to $10.1 million for the same period in 2025, an improvement of $0.7 million.
Previous wording
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 wording
Insurance Expenses were $560.7 million, or 21.2% of earned premiums, for the nine months ended September 30, 2026, compared to $634.5 million, or 21.2% of earned premiums for the same period in 2025. Insurance Expenses decreased $73.8 million due to lower expenses associated with decreased business volumes.
Previous wording
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 wording
The Specialty Property & Casualty Insurance segment’s nine months ended September 30, 2026 effective tax rate was 17.6% compared to 19.5% for the same period in 2025. The effective income tax rate for the nine months ended September 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 nine months ended 2026 and 2025 is primarily due to changes in pretax income.
Previous 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.
Current wording
Earned Premiums on personal automobile insurance decreased by $185.2 million for the three months ended September 30, 2026, compared to the same period in 2025, primarily due to lower volumes. Incurred losses and LAE were $460.7 million, or 76.8% of earned premiums for the three months ended September 30, 2026, compared to $637.7 million, or 81.2% of earned premiums, for the same period in 2025. Incurred losses and LAE as a percentage of earned premiums decreased due to favorable prior year development partially offset by a deterioration in the underlying loss and LAE ratio. Underlying losses and LAE as a percentage of related earned premiums were 80.8% for the three months ended September 30, 2026, compared to 80.1% for the same period in 2025, a deterioration of 0.7 percentage points. The deterioration was driven by higher claim severity, primarily related to bodily injury coverages in California. Prior year favorable loss and LAE reserve development was $25.9 million for the three months ended September 30, 2026, compared to adverse development of $7.9 million for the same period in 2025, an improvement of $33.8 million due primarily to favorable development on bodily injury and physical damage coverages. Catastrophe losses and LAE (excluding reserve development) were $1.6 million for the three months ended September 30, 2026, compared to $0.6 million for the same period in 2025, a deterioration of $1.0 million.
Previous wording
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 wording
Earned Premiums on personal automobile insurance decreased by $433.8 million for the nine months ended September 30, 2026, compared to the same period in 2025, primarily due to lower volumes and a $40.0 million Florida Statutory Profit Limit Refund in the first nine months of 2026. Incurred losses and LAE were $1,567.0 million, or 82.7% of earned premiums for the nine months ended September 30, 2026, compared to $1,735.5 million, or 74.5% 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, partially offset by favorable loss and LAE reserve development. Underlying losses and LAE as a percentage of related earned premiums were 84.3% for the nine months ended September 30, 2026, compared to 74.3% for the same period in 2025, a deterioration of 10.0 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 impact to earned premiums. Favorable loss and LAE reserve development was $37.0 million for the nine months ended September 30, 2026, compared to $1.4 million for the same period in 2025, an improvement of $35.6 million due primarily to favorable development on bodily injury and physical damage coverages. Catastrophe losses and LAE (excluding reserve development) were $7.8 million for the nine months ended September 30, 2026, compared to $7.6 million for the same period in 2025, a deterioration of $0.2 million.
Previous 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.
Current wording
Earned Premiums on commercial automobile insurance increased by $25.8 million for the three months ended September 30, 2026, compared to the same period in 2025, primarily due to higher business volumes and higher average earned premium per exposure. Incurred losses and LAE were $210.0 million, or 81.4% of earned premiums in 2026, compared to $213.4 million, or 91.9% of earned premiums in 2025. Incurred losses and LAE as a percentage of earned premiums improved primarily due to lower adverse prior year development, partially offset by a deterioration in the underlying loss and LAE ratio. Underlying losses and LAE as a percentage of earned premiums were 80.2% in the three months ended September 30, 2026, compared to 73.0% during the same period in 2025, a deterioration of 7.2 percentage points driven by higher claim severity, primarily related to bodily injury coverages, partially offset by higher average earned premium per exposure (1.9% increase year over year). Adverse loss and LAE reserve development was $2.7 million for the three months ended September 30, 2026, compared to adverse development of $43.5 million for the same period in 2025, a decrease of $40.8 million due primarily to lower adverse development on bodily injury coverages. Catastrophe losses and LAE (excluding reserve development) were $0.4 million for the three months ended September 30, 2026 and 2025, respectively.
Previous wording
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 wording
Earned Premiums on commercial automobile insurance increased by $83.2 million for the nine months ended September 30, 2026, compared to the same period in 2025, primarily due to higher business volumes and higher average earned premium per exposure. Incurred losses and LAE were $599.4 million, or 80.4% of earned premiums in 2026, compared to $551.8 million, or 83.3% of earned premiums in 2025. Incurred losses and LAE as a percentage of earned premiums decreased primarily due to lower adverse prior year development partially offset by a deterioration in the underlying loss and LAE ratio. Underlying losses and LAE as a percentage of earned premiums were 76.6% for the nine months ended September 30, 2026, compared to 72.8% during the same period in 2025, a deterioration of 3.8 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 $26.6 million for the nine months ended September 30, 2026, compared to adverse development of $67.5 million for the same period in 2025, a decrease of $40.9 million due primarily to lower adverse development on bodily injury coverages. Catastrophe losses and LAE (excluding reserve development) were $1.6 million for the nine months ended September 30, 2026, compared to $2.5 million for the same period in 2025, an improvement of $0.9 million.
Previous wording
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 wording
The Life Insurance segment reported Total Segment Adjusted Net Operating Income of $19.8 million for the three months ended September 30, 2026, compared to $18.6 million for the same period in 2025. The increase in segment net operating results was due primarily to higher Earned Premiums, partially offset by higher Policyholders’ Benefits from life insurance products.
Previous 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.
Current wording
Policyholders’ Benefits and Incurred Losses and LAE increased by $14.5 million for the three months ended September 30, 2026, compared to the same period in 2025, due primarily to increases from model adjustments, partially offset by decreases from the annual assumption update (combined $10.9 million increase in Life Policyholders’ Benefits) as compared to the same period in 2025. Excluding the impacts from model adjustments and the annual assumption update, Policyholders’ Benefits and Incurred Losses and LAE increased by $3.6 million, due to an increase in insurance reserves primarily driven by changes in mortality experience.
Previous 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.
Current wording
The Life Insurance segment’s three months ended September 30, 2026 effective income tax rate was 13.3% compared to 15.3% for the same period in 2025. The effective income tax rate for the third 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 decrease in the effective tax rate from the three months ended September 30, 2025 is primarily due to an increase in tax benefits from Company-Owned Life Insurance.
Previous 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.
Current wording
The Life Insurance segment reported Total Segment Adjusted Net Operating Income of $56.1 million for the nine months ended September 30, 2026, compared to $48.4 million for the same period in 2025. The increase in segment net operating results was due primarily to higher Earned Premiums and Net Investment Income, partially offset by higher Policyholders’ Benefits from life insurance products.
Previous 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.
Current wording
Net Investment Income increased by $6.8 million for the nine months ended September 30, 2026, compared to the same period in 2025, due primarily to increased earnings on alternative investments and higher yields on Company-Owned Life Insurance, partially offset by lower yields on fixed maturity securities.
Showing the first 40 of 77 pairs. Open the source sections for the rest.
Rearranged current paragraphs (2)
Current report — wording carried from elsewhere
Other Expenses decreased by $16.0 million for the three months ended September 30, 2026, compared to the same period in 2025, primarily due to lower Acquisition and Disposition Related Transaction, Integration, Restructuring and Other Costs. These costs for the three months ended September 30, 2026 included $9.8 million of restructuring charges to achieve operational and organizational efficiencies. The Company continues to evaluate additional efficiency opportunities through 2027. These costs for the three months ended September 30, 2025 included $18.5 million of restructuring charges to achieve operational and organizational efficiencies.
Current report — wording carried from elsewhere
Insurance, Interest, and Other Expenses (Continued)
Rearranged previous paragraphs (3)
Previous report — wording carried elsewhere
Net (Loss) Income attributable to Kemper Corporation
Previous report — wording carried 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.
Previous report — wording carried 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.