{"id":876330,"date":"2025-08-15T15:03:02","date_gmt":"2025-08-15T19:03:02","guid":{"rendered":"https:\/\/www.marketnewsdesk.com\/index.php\/am-best-affirms-credit-ratings-of-kemper-corporation-its-affiliates-and-subsidiaries\/"},"modified":"2025-08-15T15:03:02","modified_gmt":"2025-08-15T19:03:02","slug":"am-best-affirms-credit-ratings-of-kemper-corporation-its-affiliates-and-subsidiaries","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/am-best-affirms-credit-ratings-of-kemper-corporation-its-affiliates-and-subsidiaries\/","title":{"rendered":"AM Best Affirms Credit Ratings of Kemper Corporation, Its Affiliates and Subsidiaries"},"content":{"rendered":"

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AM Best Affirms Credit Ratings of Kemper Corporation, Its Affiliates and Subsidiaries<\/b><\/p>\n

OLDWICK, N.J.–(BUSINESS WIRE<\/a>)–AM Best <\/b>has affirmed the Financial Strength Rating (FSR) of A- (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICRs) of \u201ca-\u201d (Excellent) of the property\/casualty subsidiaries and affiliated insurance companies of Kemper Corporation (Kemper) [NYSE: KMPR], <\/b>collectively referred to as Kemper Property & Casualty Group (Kemper P&C or the group). AM Best also has affirmed the FSR of A- (Excellent) and the Long-Term ICRs of \u201ca-\u201d (Excellent) of Kemper\u2019s life subsidiaries, collectively referred to as Kemper Life Group (Kemper Life) (Chicago, IL). Concurrently, AM Best has affirmed the Long-Term ICR of \u201cbbb-\u201d (Good) and the Long-Term Issue Credit Ratings (Long-Term IRs) and indicative Long-Term IRs of Kemper, the ultimate parent,headquartered in Chicago, IL. The outlook of these Credit Ratings (ratings) is stable. (See below for further discussion and a detailed listing of all companies and ratings.)<\/p>\n

\nLastly, AM Best has withdrawn the FSR of A- (Excellent) and the Long-Term ICR of \u201ca-\u201d (Excellent) of Infinity Preferred Insurance Company (Cincinnati, OH), each with a stable outlook. Infinity Preferred Insurance Company was previously a subsidiary of Kemper and was sold as a clean shell with no remaining policyholder liabilities on Aug. 1, 2025.<\/p>\n

\nThe ratings of Kemper P&C reflect its balance sheet strength, which AM Best assesses as very strong, as well as its marginal operating performance, neutral business profile and appropriate enterprise risk management (ERM).<\/p>\n

\nKemper P&C\u2019s very strong balance sheet strength assessment reflects its strongest level of risk-adjusted capitalization, as measured by Best\u2019s Capital Adequacy Ratio (BCAR), supported by excellent financial flexibility and generally favorable reserve development trends. While the group and overall consolidated Kemper Corporation experienced volatility in results between 2021 and 2023, leading to material surplus swings and heightened underwriting and financial leverage, results and key balance sheet metrics have improved markedly in 2024 and through 2025 thus far. The group has returned to generating underwriting gains, which has strengthened surplus levels and stabilized risk-adjusted capitalization. Furthermore, Kemper\u2019s financial leverage has improved substantially through the first half of 2025 owing to the company paying down all of its $450.0 million aggregate principal of 4.35% senior unsecured notes due Feb. 15, 2025 with available cash.<\/p>\n

\nThe group also continues to benefit from the implicit and explicit support from its parent company, as well as strategic initiatives such as the exit from preferred home and auto lines and the Kemper Bermuda initiative. These initiatives have provided meaningful capital relief at the enterprise level. However, AM Best notes that Kemper\u2019s capital management policy is aimed at maintaining capital fungibility across the organization. As such, the P&C operating entities are expected to remain a significant source of dividends going forward as profitability continues to improve.<\/p>\n

\nKemper P&C\u2019s operating performance is currently assessed as marginal, primarily due to significant underwriting losses sustained over the past five years. However, recent results indicate meaningful improvement and stabilization, as the group\u2019s profitability initiatives led to operating income gains in 2024 and through the first half of 2025. Key contributors to this turnaround include rate increases \u2013 primarily in the group\u2019s primary market of California \u2013 and the implementation of tighter underwriting guidelines. With profitability now restored, Kemper P&C has eased some of its underwriting restrictions in an effort to resume growth in its book of business. AM Best will continue to monitor this growth strategy, along with ongoing regulatory developments, to assess the sustainability of the group\u2019s improved operating performance.<\/p>\n

\nThe ratings of Kemper Life reflect its balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, neutral business profile, appropriate ERM, and consideration of the group\u2019s affiliation with lead rating unit, Kemper P&C.<\/p>\n

\nIn 2022, Kemper Life announced that it was entering into an agreement with Kemper Bermuda to cede 80% of its life business to its offshore affiliate. This initiative, along with a reserve review reduction completed in late 2023, has resulted in the release of over $600 million in dividends to the parent company, Kemper. While management has completed its initiatives related to the Kemper Life business, the balance sheet has stabilized through 2024. Furthermore, the Kemper Life business continues to provide steady underlying earnings, reflective of its adequate operating performance.<\/p>\n

\nThe FSR of A- (Excellent) and the Long-Term ICRs of \u201ca-\u201d (Excellent) have been affirmed with stable outlooks for the members of Kemper Property & Casualty Group:<\/p>\n