Kemper Corporation Bids Farewell to Preferred Home and Auto Insurance Business

Here’s a breakdown of the key points from the article:

• Exit from Preferred Home and Auto Insurance Market: Kemper Corporation is leaving the preferred home and auto insurance sector. All policies under this category will be non-renewed or canceled according to state regulations.
• Preferred Business Overview: The preferred property and casualty business, sold through Kemper Personal Insurance, includes eight underwriting companies, and represents about $500 million of written premium.
• Strategic Review: The preferred business underwent a strategic review in November 2022, leading to this decision.
• Decision Rationality: CEO Joseph P. Lacher, Jr. expressed that the exit enables the release of capital and increased support for Kemper’s core specialty auto and life businesses.
• Financial Impact: Kemper had previously announced an after-tax goodwill impairment charge of $45.5 million. This exit doesn’t impact Kemper’s specialty auto business (Kemper Auto) and life business (Kemper Life).

Hot Take

Who would have thought that Kemper’s exit from the preferred home and auto insurance market would be the talk of the town? But here we are, watching them shift gears (pun intended) towards their core specialty auto and life businesses. It’s like breaking up with your old car for a snazzy new sports model. Only in this case, the breakup might be worth $500 million. Smooth drive or bumpy road ahead? Only time will tell. But one thing’s for sure: Kemper is not just playing musical chairs; they’re rearranging the whole darn orchestra!

Keywords Kemper Corporation, preferred home and auto insurance, strategic review, specialty auto business, Kemper Auto, Kemper Life, Joseph P. Lacher, Jr., state regulations, underwriting companies, written premium.

Press Release – Kemper Exits Preferred Auto and Home Market