AM Best’s reaffirmation of Kemper Corporation’s credit ratings underscores a nuanced balance between strengthened capital foundations and a still-recovering operating performance across Kemper’s Property & Casualty (P&C) and Life groups. The agency also confirms a stable outlook on the parent and its affiliates, while noting the strategic shift that culminated in the Aug. 1, 2025 sale of Infinity Preferred Insurance Company—a move that removed a subsidiary with no remaining policyholder liabilities from Kemper’s corporate structure. Throughout the notice, AM Best frames Kemper’s trajectory as one of improvement in earnings and capital position, even as it continues to monitor profitability, regulatory developments, and the ongoing portfolio management decisions designed to enhance fungibility of capital across the enterprise.
Overview of AM Best Rating Actions
AM Best has maintained the Financial Strength Rating (FSR) of A- (Excellent) for Kemper’s P&C subsidiaries and affiliated insurance entities, paired with Long-Term Issuer Credit Ratings (Long-Term ICRs) of “a-” (Excellent). These ratings apply to Kemper Property & Casualty Group (Kemper P&C) and reflect a composite assessment that prioritizes the group’s very strong balance sheet strength, modest operating performance, neutral business profile, and the adequacy of its enterprise risk management (ERM) framework.
In parallel, AM Best has affirmed the FSR of A- (Excellent) and the Long-Term ICRs of “a-” (Excellent) for Kemper Life Group (Kemper Life), the life insurance affiliates headquartered in Chicago, IL. The same rating outlook—stable—applies to both Kemper P&C and Kemper Life, signaling AM Best’s expectation that the current business mix and risk profile will persist without material deterioration over the medium term.
For the ultimate parent Kemper Corporation, AM Best has affirmed a Long-Term ICR of “bbb-” (Good), alongside Long-Term Issue Credit Ratings (Long-Term IRs) and indicative Long-Term IRs, all bearing a stable outlook. The ratings landscape for Kemper Corporation acknowledges the group’s improved capitalization metrics and the continued importance of the capital structure and governance decisions that influence both subsidiaries and the parent.
A notable adjustment in AM Best’s rating commentary concerns Infinity Preferred Insurance Company, which previously carried an FSR of A- (Excellent) and a Long-Term ICR of “a-” (Excellent) with a stable outlook. On Aug. 1, 2025, Infinity Preferred Insurance Company exited Kemper’s corporate family as a clean shell, with no outstanding policyholder liabilities. As a result, AM Best withdrew the FSR and the Long-Term ICR for Infinity Preferred Insurance Company while retaining the stable outlook that was previously associated with the entity.
This broader rating context emphasizes that the Kemper P&C group’s strength rests on a very strong balance sheet (as measured by Best’s Capital Adequacy Ratio, BCAR), supported by robust liquidity and favorable reserve development trends. AM Best also notes a macro-structural improvement in the group’s leverage profile in 2025, alongside continued capital management actions that contribute to capital fungibility across the enterprise.
The press release’s core takeaway centers on a durable balance sheet strength score for both Kemper P&C and Kemper Life, a generally improving operating performance trajectory, a neutral stance on business mix and strategic positioning, and well-calibrated ERM practices. Taken together, these elements underpin AM Best’s stable outlooks, even as the agency remains vigilant regarding profitability normalization, regulatory changes, and the efficiency of capital deployment across Kemper’s diversified portfolio.
In translating AM Best’s commentary into actionable insight for stakeholders, it is essential to understand the rating mechanics and the way scale-based judgments interact with organizational strategy. The A- FSR designation signals strong protection for policyholders and robust claims-paying capacity within Kemper P&C’s footprint. The “a-” Long-Term ICR indicates a solid and sustainable credit footing for the group’s debt and financial obligations, tempered by considerations that include market conditions and the potential for volatility in underwriting performance. The BBB- level assigned to Kemper Corporation’s long-term debt reflects a higher risk tier relative to the A- group ratings, but with a stable profile that aligns with the parent’s diversified asset base, disciplined capital management, and ongoing strategic initiatives.
Through this lens, AM Best’s rating actions align with the broader narrative that Kemper’s governance, risk controls, and capital framework are well-positioned to support solvency and liquidity across its subsidiaries, even as the organization executes strategic shifts to optimize profitability and capital allocation.
Kemper Property & Casualty Group (Kemper P&C): Strength, Performance, and Capital Management
Kemper P&C’s ratings rest on a foundation described by AM Best as very strong balance sheet strength, a marginal operating performance assessment, a neutral business profile, and an appropriate ERM framework. Within this framework, Best’s assessment emphasizes the following dimensions: the group’s capital adequacy, liquidity and financial flexibility, reserve development trends, and the ability to leverage capital across the enterprise to support growth and stabilization initiatives.
The balance sheet strengths are anchored in the highest tier of risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR). This metric captures the group’s capacity to absorb unexpected losses while sustaining ordinary course operations and dividend flows. AM Best notes that Kemper P&C benefits from both implicit and explicit support from the parent Kemper Corporation, as well as strategic capital-relief initiatives. These include the exit from certain lines of business—namely preferred home and auto lines—and the Bermuda-based Kemper Bermuda program, which have contributed to improved capital metrics at the enterprise level.
Kemper P&C’s path through 2021–2023 featured notable volatility in results, driven by swings in surplus and heightened underwriting and financial leverage. The AM Best report highlights that these dynamics resulted in weaker performance signals and volatility in balance sheet strength during that period. However, 2024 brought a meaningful improvement in profitability metrics and 2025 year-to-date results have continued to reflect stabilization and strengthening of the underwriting book. The latest results indicate underwriting gains returning to the books, supplementing surplus growth and reinforcing risk-adjusted capitalization.
A central driver of this improvement has been deliberate profitability initiatives, including rate increases in the primary market—most notably in California—and the tightening of underwriting guidelines. These actions contributed to a reduction in loss cost pressures and a more disciplined approach to risk selection, allowing the company to reposition its exposure and reduce the variance that characterized prior years. With profitability restored, Kemper P&C has begun to ease underwriting restrictions to pursue growth in its book of business. This shift suggests a longer-term strategy to expand market share and diversify book composition while maintaining strong risk controls and reserve adequacy.
AM Best emphasizes that Kemper P&C’s operating performance remains marginal in the near term, but the trajectory is improving. The end result is a balance between stabilizing underwriting results and rebuilding debt leverage at a pace that maintains confidence in the group’s ability to sustain earnings and capital growth. The group’s capital management policy is designed to maintain fungibility across the organization, enabling capital to be redirected within the Kemper platform as profitability and risk profiles evolve. This policy underpins the expectation that P&C operating entities will remain significant sources of dividends in the future, particularly as profitability improves and internal capital generation strengthens.
Key to AM Best’s assessment is the group’s ongoing risk management discipline and the effectiveness of its ERM framework. The group’s governance structure, risk identification processes, and capital planning are designed to anticipate market shifts, regulatory developments, and potential adverse events. The ERM processes are viewed as appropriate for maintaining the organization’s resilience in the face of adverse claims experience and macroeconomic volatility. In practice, this means that Kemper P&C’s management remains focused on preserving capital flexibility and ensuring capital allocation aligns with strategic objectives, including sustainable growth opportunities and prudent dividend distribution.
In the context of the 2024–2025 performance improvements, AM Best notes several operational milestones that support the current rating stance. For instance, the company’s ability to generate underwriting income has contributed to stabilization of earnings and strengthened surplus. The improved balance sheet strength, along with enhanced dividend capacity, positions Kemper P&C as a more resilient platform within the broader Kemper corporate structure. While regulatory changes and macroeconomic conditions can introduce near-term uncertainties, the rating narrative centers on the group’s improved profitability and the capacity to absorb shocks, aided by internal capital flows and parent company support.
Kemper P&C’s extensive list of subsidiaries—ranging across multiple specialized insurance lines and entities—serves as the backbone of the group’s diversified exposure and business mix. The following entities are affirmed at the A- FSR level with a stable outlook, reflecting their integrated yet distinct operating profiles within the P&C umbrella:
- Trinity Universal Insurance Company
- Alpha Property & Casualty Insurance Company
- Capitol County Mutual Fire Insurance Company
- Charter Indemnity Company
- Financial Indemnity Company
- Infinity Insurance Company
- Infinity Assurance Insurance Company
- Infinity Auto Insurance Company
- Infinity Casualty Insurance Company
- Infinity Indemnity Insurance Company
- Infinity Safeguard Insurance Company
- Infinity Select Insurance Company
- Infinity Standard Insurance Company
- Infinity County Mutual Insurance Company
- Kemper Independence Insurance Company
- Merastar Insurance Company
- Mutual Savings Fire Insurance Company
- Kemper Financial Indemnity Company
- Old Reliable Casualty Company
- Response Insurance Company
- Response Worldwide Direct Auto Insurance Company
- Response Worldwide Insurance Company
- Union National Fire Insurance Company
- United Casualty Insurance Company of America
- Unitrin Advantage Insurance Company
- Unitrin Auto and Home Insurance Company
- Unitrin County Mutual Insurance Company
- Unitrin Direct Insurance Company
- Unitrin Direct Property & Casualty Company
- Unitrin Preferred Insurance Company
- Unitrin Safeguard Insurance Company
- Valley Property & Casualty Insurance Company
- Warner Insurance Company
The breadth of this network underscores Kemper P&C’s diversified exposure to multiple lines of business and geographies. While this diversification has historically supported revenue streams, it also amplifies the importance of robust risk management and conservative reserve development practices. AM Best’s assessment that reserve development trends are generally favorable indicates that the group’s reserves have progressed toward adequacy, contributing to the capital and earnings profile that underpins the very strong balance sheet.
From a regulatory and risk management perspective, Kemper P&C’s leadership is expected to maintain a vigilant view of market dynamics, including rate volatility in core markets, evolving regulatory frameworks, and competitive pressures. The company’s strategic adjustments—coupled with ongoing capital management and dividend policies—are designed to preserve financial flexibility and ensure that surplus can be channeled into growth opportunities while meeting policyholder commitments. AM Best’s rating stance reflects these dynamics, recognizing both strengths and areas where management’s actions will be critical to sustaining performance over the medium term.
In sum, Kemper P&C’s ratings embody a balance between structural strength and the cyclical nature of underwriting profitability. The group’s capitalization is described as very strong, supported by liquidity and a flexible capital structure that allows for strategic redeployment as the business evolves. The marginal operating performance is a temporary attribute that AM Best expects to improve as profitability initiatives take hold, with ongoing monitoring to ensure that underwriting discipline and market conditions align with the company’s long-term stabilization and growth objectives.
Kemper Life Group: Balance Sheet Strength, Stability, and Earnings
Kemper Life Group receives the same FSR and Long-Term ICR designation as Kemper P&C, with A- (Excellent) and a- (Excellent) respectively, all with a stable outlook. The Life group’s evaluation emphasizes a very strong balance sheet, adequate operating performance, a neutral business profile, and an ERM framework that is aligned with the group’s overall risk posture. The affiliations with Kemper P&C, including a central rating position that recognizes inter-group support and capital channeled to promote enterprise-level resilience, are key considerations in AM Best’s assessment.
A distinctive feature of Kemper Life’s recent trajectory concerns its strategic alignment with Kemper Bermuda and related reallocation of life business in 2022. Specifically, Kemper Life announced an arrangement to cede 80% of its life business to its offshore Bermuda affiliate. This reallocation is complemented by a reserve review reduction completed in late 2023, which collectively contributed to the release of more than $600 million in dividends back to the parent Kemper Corporation. The dividend yield embedded in this movement has supported capital deployment at the enterprise level, enabling ongoing strategic initiatives and balance sheet stabilization.
Management’s completion of these initiatives has been followed by a stabilization of the life group’s balance sheet throughout 2024. The Life segment continues to deliver steady underlying earnings, a sign of adequate operating performance that supports the group’s overall creditworthiness. While the life operations have not driven the same level of earnings volatility that previously affected Kemper P&C, the Life group’s earnings contribution remains resilient, helping to anchor the broader Kemper corporate risk and capital framework.
AM Best’s assessment of Kemper Life’s balance sheet strength as very strong reflects the longevity and quality of the life insurers’ capital base, including risk-based capital adequacy, earnings stability, and the ability to weather dynamic policyholder behavior and interest rate environments. The group’s adequate operating performance supports a disciplined approach to product design, reserve adequacy, and expense management, with a focus on maintaining a robust risk-adjusted return profile.
In terms of ERM, Kemper Life is considered to have an appropriate framework that aligns with the larger Kemper enterprise. Product lines, reinsurance arrangements, and capital management policies are integrated with the P&C operations to ensure an efficient allocation of capital, consistent with the enterprise’s risk tolerance and strategic objectives. The interplay between the two major business lines, plus Bermuda-based diversification, forms a cohesive risk profile that AM Best deems consistent with the current rating framework and outlook.
The life group’s relationship with the Kemper P&C group is a critical vector for understanding the enterprise’s overall credit strength. Inter-group risk sharing, capital support, and the management of capital fungibility across the organization contribute to a stable outlook. AM Best’s analysis recognizes that the life group’s earnings and balance sheet metrics are resilient enough to support the parent and the affiliated P&C operations, particularly in light of the capital returns realized via Bermuda-related arrangements and the stabilization of the balance sheet in 2024.
The organization’s capital structure, particularly in connection with future dividend potential and the ability to deploy capital across the group, remains a key consideration for the rating. The improved capitalization levels and steady earnings underpin the group’s financial flexibility and its ability to maintain a strong credit profile even as the life insurance landscape evolves in response to regulatory, demographic, and product design changes. AM Best’s stable outlook for Kemper Life reflects confidence that the life operations will continue to contribute to the overall resilience and solvency of the Kemper corporate platform.
Life Group Members Affirmed
The following Life Group entities are affirmed at A- FSR with a stable outlook, reflecting the group’s very strong balance sheet and adequate operating performance:
- United Insurance Company of America
- Mutual Savings Life Insurance Company
- The Reliable Life Insurance Company
- Union National Life Insurance Company
These entities collectively form the life insurance backbone of Kemper, contributing to the stable earnings and capital generation that support the broader corporate ratings. Their status in AM Best’s framework reinforces the principle that life operations remain an integral part of the enterprise’s risk profile and capital adequacy narrative.
Infinity Preferred Insurance Company: Withdrawal of Ratings and Implications
Infinity Preferred Insurance Company, based in Cincinnati, Ohio, was part of Kemper’s broader corporate footprint but was divested as a clean shell on Aug. 1, 2025. As part of the exit, AM Best withdrew the FSR of A- (Excellent) and the Long-Term ICR of “a-” (Excellent), while maintaining a stable outlook on the ratings that were previously in effect for the entity. The sale of Infinity Preferred Insurance Company removed a subsidiary with no remaining policyholder liabilities, aligning the group’s structure with a streamlined corporate design focused on core P&C and Life operations.
The withdrawal of ratings for Infinity Preferred Insurance Company reflects an updated view of the Kemper enterprise’s risk exposure and capital requirements following the divestiture. From a supervisory or investor perspective, this adjustment signals that the entity is no longer a rating consideration in the AM Best framework, and thus no longer contributes to the enterprise-wide risk weighting that informs the Kemper group’s capital adequacy and solvency assessments. The remaining Kemper subsidiaries and the parent company continue to be the focal points for rating discussions, with attention to how capital resources are allocated across Kemper P&C and Kemper Life and how the enterprise strategy influences risk and return.
The Infinity exit also illustrates the broader trend toward strategic simplification and concentration on core lines of business within the Kemper portfolio. By removing a non-core affiliate and its liabilities from the balance sheet, Kemper reduces potential liabilities and complexity, thereby improving risk-adjusted capital measures and the predictability of future earnings streams. This strategic action aligns with AM Best’s emphasis on capital adequacy, reserve strength, and the ability to sustain timely policyholder claims payments under adverse conditions.
Detailed Rating Listings and Subsidiary Landscape
The AM Best affirmation applies at the consolidated group level as well as at individual entity levels within Kemper’s multi-organization structure. The ratings contemplate not only the financial strength and credit quality of each subsidiary but also the interdependencies that influence the group’s capital and risk management strategies. The parent’s long-term liabilities and the credit quality of its debt instruments reflect the combined effect of the subsidiaries’ performance, intercompany transactions, and the enterprise’s governance framework.
Kemper Property & Casualty Group Members
Kemper P&C’s FSR and Long-Term ICRs apply across an expansive list of affiliates, each contributing to market presence, risk diversification, and revenue generation. The following entities are part of the Kemper P&C group and have been affirmed at the A- FSR level with stable outlooks:
- Trinity Universal Insurance Company
- Alpha Property & Casualty Insurance Company
- Capitol County Mutual Fire Insurance Company
- Charter Indemnity Company
- Financial Indemnity Company
- Infinity Insurance Company
- Infinity Assurance Insurance Company
- Infinity Auto Insurance Company
- Infinity Casualty Insurance Company
- Infinity Indemnity Insurance Company
- Infinity Safeguard Insurance Company
- Infinity Select Insurance Company
- Infinity Standard Insurance Company
- Infinity County Mutual Insurance Company
- Kemper Independence Insurance Company
- Merastar Insurance Company
- Mutual Savings Fire Insurance Company
- Kemper Financial Indemnity Company
- Old Reliable Casualty Company
- Response Insurance Company
- Response Worldwide Direct Auto Insurance Company
- Response Worldwide Insurance Company
- Union National Fire Insurance Company
- United Casualty Insurance Company of America
- Unitrin Advantage Insurance Company
- Unitrin Auto and Home Insurance Company
- Unitrin County Mutual Insurance Company
- Unitrin Direct Insurance Company
- Unitrin Direct Property & Casualty Company
- Unitrin Preferred Insurance Company
- Unitrin Safeguard Insurance Company
- Valley Property & Casualty Insurance Company
- Warner Insurance Company
These entities form the backbone of Kemper P&C’s underwriting footprint, spanning a wide array of property and casualty lines, direct and indirect auto coverage, specialty products, and regional exposure. The AM Best view recognizes that these operating companies collectively sustain a diversified risk profile, a broad revenue base, and a portfolio of products designed to meet a wide range of consumer and commercial needs. The ratings also reflect the inter-company supports, reinsurance arrangements, and capital interdependencies that allow the group to react to fluctuations in claims experience and market pricing.
Kemper Life Group Members
Kemper Life Group’s portfolio comprises life insurance entities that operate within the same corporate umbrella as Kemper’s P&C group. The following entities are affirmed at A- FSR with a stable outlook, mirroring the Life group’s balance sheet resilience and earnings stability:
- United Insurance Company of America
- Mutual Savings Life Insurance Company
- The Reliable Life Insurance Company
- Union National Life Insurance Company
The Life Group’s suite of products and policies, coupled with its Bermuda-related arrangements and reserve strategy, contributes to the overall enterprise’s risk profile. The Life Group’s performance, including the development of earnings and the management of capital, feeds into the broader Kemper corporate structure, supporting both policyholder obligations and shareholder value through a sustainable earnings stream.
Debt Ratings and Shelf-Indicated Long-Term Prospects
In addition to the primary FSR and ICR designations for Kemper P&C and Kemper Life, AM Best has affirmed several Long-Term IRs associated with Kemper Corporation’s debt programs, including specific notes and shelf-registered issuances. The agency’s ratings provide clarity on the credit quality of the company’s senior and subordinated obligations and reflect the enterprise’s capital strategy, leverage trajectory, and anticipated cash flow availability for debt service.
Outstanding Long-Term Issued Debt Ratings
AM Best has affirmed the following Long-Term IRs for Kemper Corporation’s existing debt:
- BBB- on $400 million of 2.4% senior unsecured notes due 2030
- BBB- on $400 million of 3.8% senior unsecured notes due 2032
- BB on $150 million of junior subordinated debentures due 2062
These ratings indicate a Good to Fair credit quality tier for the senior unsecured debt, with a lower rating for the subordinated debt, reflecting subordination risk and the expected relative loss absorption capacity in adverse scenarios. The stable outlook attached to these ratings aligns with the overall status of the Kemper enterprise and its ongoing path toward profitability stabilization, capital adequacy, and prudent financial management.
Indicated Long-Term IRs under the Shelf Registration
AM Best also affirmed illustrative, or indicative, Long-Term IRs associated with Kemper Corporation’s shelf registration, with stable outlooks. These include:
- BBB- (Good) on senior unsecured debt
- BB+ (Fair) on subordinated debt
- BB (Fair) on preferred stock
These shelf ratings reflect the anticipated credit quality of potential future issuances under Kemper’s borrowing program, assuming the enterprise continues to maintain disciplined capital management and robust risk controls. The stable outlook on these indicators implies that, given the current strategy and operating environment, Kemper’s future debt and equity issuances would be expected to carry ratings consistent with the enterprise’s current risk posture.
Strategic and Capital Management Context
A central thread running through AM Best’s assessment is the strategic management of capital across Kemper’s platform and the way capital flows are utilized to support risk-bearing activities, dividend distributions, and growth initiatives. The agency notes that the group benefits from explicit and implicit support from the parent, enabling a higher degree of capital flexibility than might be available to an independently capitalized reinsurer of similar size. In addition, the Bermuda initiative and the exit from the preferred home and auto lines have contributed to an enterprise-level capital relief, reducing capital entanglements and allowing for more efficient deployment of resources.
The capital management policy, as described by AM Best, is designed to maintain capital fungibility across Kemper’s operations. This suggests that cash and capital resources will be allocated to business units in a manner that maximizes risk-adjusted returns while preserving solvency and policyholder security. As profitability improves across the P&C segment, the group expects P&C operating entities to remain a significant source of dividends, signaling a continued emphasis on returning capital to the parent while maintaining sufficient reserves and capitalization to support growth and volatility management.
The Bermuda initiative, in particular, is highlighted as a strategic lever that has delivered meaningful relief at the enterprise level. The arrangement with Kemper Bermuda allows for reallocation of capital and risk transfer, contributing to the balance sheet’s resilience in unfavorable market conditions. The exit from certain lines of business also reduces potential volatility in cash flows and claims experience, contributing to a more predictable earnings profile. Taken together, these factors support a more stable capital trajectory, which interacts with AM Best’s views on ERM, risk control, and governance.
In terms of growth strategy, Kemper P&C’s approach to easing underwriting restrictions to pursue growth suggests a measured and controlled expansion plan. AM Best recognizes that such a strategy, if executed with discipline, can lead to a more robust premium base, improved market share, and enhanced risk diversification. However, the agency also emphasizes the need to monitor regulatory developments and ensure that expansion does not outpace risk controls or erode reserve adequacy. The balance between growth and risk mitigation will be critical for sustaining the favorable rating trajectory over the medium term.
From an investor-relations perspective, the rating affirmation with a stable outlook provides clarity about the Kemper platform’s ongoing ability to meet debt obligations and to sustain policyholder obligations under a variety of economic scenarios. The ratings imply that Kemper’s financial leverage and liquidity profiles are within a range that supports continued access to favorable capital markets, while the enterprise remains exposed to the cyclical nature of the insurance business, particularly in the P&C space where claims experience and pricing dynamics can be volatile.
Prospective Outlook: Risks, Monitoring, and Market Context
AM Best’s stable outlook across Kemper’s P&C and Life groups reflects an expectation that the improvements witnessed in 2024 and through the first half of 2025 will be sustained. However, the rating agency also underscores the importance of ongoing monitoring of several risk vectors. First, profitability normalization remains a focal point. While the early 2025 results indicate operational improvement, AM Best emphasizes the need to verify that these gains are durable and not the result of short-term price actions or one-off reserve adjustments. The continuation of rate increases, tighter underwriting discipline, and conservative claims handling will be pivotal to achieving sustained profitability.
Second, regulatory developments present a potential source of volatility. The insurance landscape is subject to evolving state and federal requirements, including capital and solvency frameworks, reserve adequacy standards, and consumer protection measures. Kemper’s ability to adapt to regulatory changes without compromising capital adequacy or earnings stability will influence the continued appropriateness of the current ratings.
Third, the enterprise’s capital management decisions, especially with respect to intercompany dividends and cross-entity liquidity transfers, will be critical. AM Best recognizes the enterprise’s pursuit of capital fungibility, but this strategy must remain aligned with solvency objectives and policyholder interests. The balance between distributing earnings to support parent-level capital, while maintaining adequate reserves to support long-tail liabilities and potential adverse development, will shape the rating trajectory over time.
From a market perspective, Kemper operates in a competitive property and casualty sector characterized by rate volatility, claims inflation, and regulatory pressure. The company’s strategy to leverage rate enhancements, tighten underwriting guidelines, and selectively grow volumes in core markets such as California positions Kemper to capitalize on pricing power while maintaining a prudent risk profile. The Life Group, meanwhile, benefits from capital movements, including Bermuda-based arrangements, to manage its reserve and earnings profile effectively. Investors and stakeholders should watch for signs of sustained profitability, capital adequacy, and the enterprise’s ability to navigate a potentially challenging environment.
Conclusion
AM Best’s affirmations of Kemper Corporation’s credit ratings across the Property & Casualty Group, Life Group, and the parent entity reflect a cohesive narrative of improved capital strength, stabilizing operating performance, and strategic capital-management actions. The very strong balance sheet strength for Kemper P&C, combined with the Life Group’s very strong capitalization, supports a stable financial foundation that underpins the enterprise’s ability to absorb shocks, meet policyholder obligations, and pursue growth opportunities in a disciplined fashion.
The withdrawal of ratings for Infinity Preferred Insurance Company underscores the importance of portfolio simplification and preservation of capital within the Kemper organizational framework. The 2025 actions—including the Bermuda initiative, exit from certain lines of business, and a disciplined debt-management approach—illustrate Kemper’s commitment to optimizing capital structure and capital allocation across the enterprise. These actions, together with the stabilization in 2024–2025 performance, contribute to the trust that AM Best places in Kemper’s risk governance and strategic direction.
Looking forward, the key factors that will influence Kemper’s ratings include the durability of profitability improvements in Kemper P&C, the ongoing stability of Kemper Life’s earnings and reserve posture, the effectiveness of enterprise ERM practices, and the management of capital flows to support growth while preserving solvency. AM Best’s stable outlook suggests confidence that Kemper’s strategic trajectory remains aligned with its risk tolerances and capital objectives. Stakeholders should monitor how pricing actions, regulatory developments, and macroeconomic conditions influence underwriting results, reserve adequacy, and the group’s ability to sustain dividends and capital flexibility across the enterprise. This comprehensive assessment reinforces the sense that Kemper remains well-positioned within its rating framework, provided that the factors underpinning profitability, capital adequacy, and risk management continue on their current course.