Executive Summary
Kemper Corporation, a diversified insurance holding company, provides property and casualty, and life and health insurance to individuals and businesses in the United States.
Rewards
Risk Analysis
Earnings are forecast to decline by an average of -10.9% per year for the next 3 years
Snowflake Analysis
Solid track record established dividend payer.
Similar Companies
Share Price & News
How has Kemper's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: UI2 has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
0.7%
UI2
1.9%
DE Insurance
2.0%
DE Market
1 Year Return
4.0%
UI2
30.2%
DE Insurance
15.1%
DE Market
Return vs Industry: UI2 underperformed the German Insurance industry which returned 29.6% over the past year.
Return vs Market: UI2 underperformed the German Market which returned 15% over the past year.
Shareholder returns
| UI2 | Industry | Market | |
|---|---|---|---|
| 7 Day | 0.7% | 1.9% | 2.0% |
| 30 Day | 2.8% | 5.7% | 1.0% |
| 90 Day | 10.6% | 8.5% | 3.8% |
| 1 Year | 5.4%4.0% | 35.9%30.2% | 18.6%15.1% |
| 3 Year | n/a | 69.1%48.7% | 16.8%6.6% |
| 5 Year | n/a | 103.9%63.3% | 23.7%6.7% |
Price Volatility Vs. Market
How volatile is Kemper's share price compared to the market and industry in the last 5 years?
Simply Wall St News
No news available
Valuation
Is Kemper undervalued compared to its fair value and its price relative to the market?
48.6%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: UI2 (€73) is trading below our estimate of fair value (€142.07)
Significantly Below Fair Value: UI2 is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: UI2 is good value based on its PE Ratio (9.9x) compared to the Insurance industry average (12.7x).
PE vs Market: UI2 is good value based on its PE Ratio (9.9x) compared to the German market (21.1x).
Price to Earnings Growth Ratio
PEG Ratio: UI2's earnings are forecast to decline next year, so we can't calculate its PEG ratio.
Price to Book Ratio
PB vs Industry: UI2 is overvalued based on its PB Ratio (1.3x) compared to the DE Insurance industry average (1.2x).
Next Steps
Future Growth
How is Kemper forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?
-10.9%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: UI2's earnings are forecast to decline over the next 3 years (-10.9% per year).
Earnings vs Market: UI2's earnings are forecast to decline over the next 3 years (-10.9% per year).
High Growth Earnings: UI2's earnings are forecast to decline over the next 3 years.
Revenue vs Market: UI2's revenue (5.7% per year) is forecast to grow faster than the German market (5% per year).
High Growth Revenue: UI2's revenue (5.7% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: UI2's Return on Equity is forecast to be low in 3 years time (10.4%).
Next Steps
Past Performance
How has Kemper performed over the past 5 years?
42.9%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: UI2 has high quality earnings.
Growing Profit Margin: UI2's current net profit margins (10.5%) are higher than last year (5.1%).
Past Earnings Growth Analysis
Earnings Trend: UI2's earnings have grown significantly by 42.9% per year over the past 5 years.
Accelerating Growth: UI2's earnings growth over the past year (182.5%) exceeds its 5-year average (42.9% per year).
Earnings vs Industry: UI2 earnings growth over the past year (182.5%) exceeded the Insurance industry 7.8%.
Return on Equity
High ROE: UI2's Return on Equity (13.4%) is considered low.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is Kemper's financial position? (This company is analysed differently as a bank or financial institution)
Financial Position Analysis
Debt to Equity History and Analysis
Balance Sheet
Inventory Level: UI2 has a low level of unsold assets or inventory.
Debt Coverage by Assets: UI2's debt is covered by short term assets (assets are 2.6x debt).
Financial Institutions Analysis
Asset Level: UI2's level of assets compared to its equity is low.
Allowance for Bad Loans: Insufficient data to determine if UI2 has a sufficient allowance for bad loans.
Low Risk Liabilities: UI2 reports no customer deposits, loans are made up entirely of externally borrowed funds.
Loan Level: Insufficient data to determine if UI2 has an acceptable proportion of non-loan assets held.
Low Risk Deposits: UI2 has advanced significantly more loans than the customer deposits it holds.
Level of Bad Loans: Insufficient data to determine if UI2 has an appropriate level of bad loans.
Next Steps
Dividend
What is Kemper's current dividend yield, its reliability and sustainability?
1.50%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: UI2's dividend (1.5%) is higher than the bottom 25% of dividend payers in the German market (1.31%).
High Dividend: UI2's dividend (1.5%) is low compared to the top 25% of dividend payers in the German market (3.59%).
Stability and Growth of Payments
Stable Dividend: UI2's dividends per share have been stable in the past 10 years.
Growing Dividend: UI2's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its low payout ratio (12.8%), UI2's dividend payments are thoroughly covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: UI2's dividends in 3 years are forecast to be well covered by earnings (20.5% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
4.3yrs
Average management tenure
CEO
Joe Lacher (50yo)
4.3yrs
Tenure
US$6,905,879
Compensation
Mr. Joseph Patrick Lacher, Jr., also known as Joe, has been the President, Chief Executive Officer and Director of Kemper Corporation since November 11, 2015. From November 2009 to July 2011, Mr. Lacher wa ...
CEO Compensation Analysis
Compensation vs Market: Joe's total compensation ($USD6.91M) is above average for companies of similar size in the German market ($USD3.37M).
Compensation vs Earnings: Joe's compensation has increased by more than 20% in the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 4.3yrs | US$6.91m | 0.11% $5.3m | |
| Senior VP & CFO | 3.3yrs | US$2.23m | 0.043% $2.1m | |
| Senior VP & Chief Investment Officer | 10.8yrs | US$1.80m | 0.032% $1.6m | |
| Senior VP and President of Property & Casualty Division | 0yrs | US$4.52m | 0.012% $610.4k | |
| Executive VP of Business Development & Reinsurance and President of Life & Health Division | 0yrs | US$1.74m | 0.042% $2.1m | |
| Senior Vice President of Operations & Systems | 2.9yrs | US$1.36m | 0.019% $947.8k | |
| VP & Chief Accounting Officer | 20.5yrs | US$1.11m | 0.094% $4.6m | |
| Vice President of Investor Relations | 0yrs | no data | no data | |
| Senior VP | 4.8yrs | no data | 0.063% $3.1m | |
| Assistant Vice President of Corporate Communications | 2.1yrs | no data | no data |
4.3yrs
Average Tenure
51.5yo
Average Age
Experienced Management: UI2's management team is considered experienced (4.3 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 4.3yrs | US$6.91m | 0.11% $5.3m | |
| Independent Director | 9.8yrs | US$196.21k | 0.015% $737.8k | |
| Independent Director | 5yrs | US$219.25k | 0.0048% $236.6k | |
| Non-Executive Chairman | 4.3yrs | US$305.71k | 0.0037% $184.4k | |
| Director | 6.8yrs | US$192.21k | no data | |
| Independent Director | 5yrs | US$209.17k | no data | |
| Independent Director | 2.5yrs | US$193.68k | 0.0015% $73.8k | |
| Independent Director | 3.5yrs | US$188.45k | no data | |
| Independent Director | 1.6yrs | US$43.52k | 0.016% $804.7k |
4.3yrs
Average Tenure
64yo
Average Age
Experienced Board: UI2's board of directors are considered experienced (4.3 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 13.3%.
Top Shareholders
Company Information
Kemper Corporation's company bio, employee growth, exchange listings and data sources
Key Information
- Name: Kemper Corporation
- Ticker: UI2
- Exchange: DB
- Founded: 1990
- Industry: Property and Casualty Insurance
- Sector: Insurance
- Market Cap: US$5.329b
- Listing Market Cap: US$4.918b
- Shares outstanding: 66.67m
- Website: https://www.kemper.com
Number of Employees
Location
- Kemper Corporation
- 200 East Randolph Street
- Suite 3300
- Chicago
- Illinois
- 60601
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| KMPR | NYSE (New York Stock Exchange) | Yes | Common Shares | US | USD | Apr 1990 |
| UI2 | DB (Deutsche Boerse AG) | Yes | Common Shares | DE | EUR | Apr 1990 |
| KMPR34 | BOVESPA (Bolsa de Valores de Sao Paulo) | BDR EACH 1 REP 0.5 COM USD0.10 | BR | BRL | May 2019 |
Biography
Kemper Corporation, a diversified insurance holding company, provides property and casualty, and life and health insurance to individuals and businesses in the United States. It operates through three segments: Preferred Property & Casualty Insurance, Specialty Property & Casualty Insurance, and Life and Health Insurance. The company provides automobile, homeowners, renters, fire, umbrella, and other types of property and casualty insurance to individuals; and commercial automobile insurance to businesses. The company distributes its products through independent agents and brokers. The company also offers life insurance, including permanent and term insurance, as well as supplemental accident and health insurance products; Medicare supplement insurance; and limited health insurance coverages, such as fixed indemnity, specified disease, and accident-only plans to individuals in rural areas. The company was formerly known as Unitrin, Inc. and changed its name to Kemper Corporation in August 2011. Kemper Corporation was founded in 1990 and is headquartered in Chicago, Illinois.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/17 22:52 |
| End of Day Share Price | 2020/02/17 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/12/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.