Summary: Kemper Corp. And Subsidiaries

S&P Global Ratings' rating on Kemper Corp. and its core operating subsidiaries (collectively, Kemper) reflects the group's strong presence in the nonstandard auto market, diversified earnings stream, and very strong financial position, offset by the company's historical operating performance lagging its peers', and geographic concentration in California. We view Kemper's purchase of Infinity Property&Casualty Corp. for approximately $1.6 billion in cash and stock as favorable to the business risk profile given Infinity's track record of strong performance in Kemper's core P/C business segments. We believe that this will help accelerate performance improvements that had begun when Joe Lacher became CEO in 2015 and restructured many of the operations. Nevertheless, the addition of Infinity creates a concentration in the

...S&P Global Ratings' rating on Kemper Corp. and its core operating subsidiaries (collectively, Kemper) reflects the group's strong presence in the nonstandard auto market, diversified earnings stream, and very strong financial position, offset by the company's historical operating performance lagging its peers', and geographic concentration in California. We view Kemper's purchase of Infinity Property & Casualty Corp. for approximately $1.6 billion in cash and stock as favorable to the business risk profile given Infinity's track record of strong performance in Kemper's core P/C business segments. We believe that this will help accelerate performance improvements that had begun when Joe Lacher became CEO in 2015 and restructured many of the operations. Nevertheless, the addition of Infinity creates a concentration in the California market with over 50% of Kemper's premiums derived from this state. However, this concern is mitigated by the state's diverse profile; Kemper's niche focus in...

Summary