Kemper Corp.'s underwriting results have deteriorated materially over the past 18 months due to sustained inflationary pressures, claim frequency rebounding toward pre-pandemic levels, and limitations on its ability to achieve rate increases for its largest state. As a result, we revised our outlook to negative from stable and affirmed our ratings on Kemper Corp. and its core operating subsidiaries (collectively, Kemper). The negative outlook means we could downgrade Kemper by one notch within the next 24 months if the company does not improve its operating metrics and perform more in line with our expectations and similarly rated peers. On Aug. 5, 2022, S&P Global Ratings revised the outlook on Kemper Corp. and its core operating subsidiaries to negative from stable.
