...September 22, 2020 NEW YORK (S&P Global Ratings) Sept. 22, 2020--S&P Global Ratings said today that it has assigned its '###' debt rating to Kemper Corp.'s proposed 2.4% $400 million senior notes due 2030. We expect Kemper to use the proceeds from the offering to support potential growth opportunities across its diversified property/casualty and life and health business. The proposed issuance raises Kemper's financial leverage to about 23%-25%, up from 18% as of second-quarter 2020, but this is well supported by the firm's strong cash-flow generation and improved underwriting performance--which was strengthened by its integration of Infinity. In 2019, Kemper's financial leverage decreased significantly from 2018 due to strong earnings and unrealized gains on its investment portfolio, boosting shareholders equity. Our long-term expectation was for the company to manage financial leverage above 20%--in line with historical performance. While the COVID-19 pandemic has adversely influenced...
