Kemper business insurance

Overview

Kemper is mainly a nonstandard personal auto insurer, and its business insurance is almost entirely commercial auto for small businesses. Its NAIC group ranked No. 77 among U.S. business insurers by 2025 commercial lines direct premiums written, with $1.01 billion, based on NAIC market share data. Of that, $978.4 million was commercial auto, with small amounts of fire ($22.9 million) and burglary and theft ($7.7 million). It is not among the 10 largest writers of any commercial line nationally. Business lines are about a quarter of the group's $4.02 billion all-lines premium.

Kemper Corporation, listed on the New York Stock Exchange as KMPR and based in Chicago, owns the insurers. The NAIC group includes Trinity Universal, the Infinity companies, Unitrin Auto and Home, Unitrin Advantage, American Access Casualty, Alpha Property & Casualty, Response Worldwide (Direct Auto) and the Kemper Reciprocal exchange, among others. Commercial auto is sold under the Kemper Auto Commercial name in eight states, mostly through independent agents. Stephen J. McAnena became president and CEO on June 1, 2026.

Commercial vehicle status as of October 2026: Kemper has not announced an exit from or runoff of commercial auto; it is the company's growing line. Net written premium rose from $627.9 million in 2023 to $797.7 million in 2024 and $978.7 million in 2025, and was $538.6 million in the first half of 2026, up from $479.4 million a year earlier. Policies in force grew 10% year over year in the first quarter of 2026. The businesses Kemper has exited are elsewhere (see History).

History

• 1990: The holding company was incorporated in Delaware as Unitrin, Inc.
• 2011: Unitrin renamed itself Kemper Corporation on August 25, 2011, and changed its ticker from UTR to KMPR.
• 2018: Kemper closed its purchase of Infinity Property and Casualty, one of the largest U.S. nonstandard auto insurers, on July 2, 2018. The cash-and-stock deal was valued at about $1.6 billion at closing, and Infinity brought about 10,600 independent agents and $1.4 billion of 2017 direct written premium.
• 2021: Kemper completed its $370 million purchase of American Access Casualty Company, a specialty private passenger auto writer in Arizona, Illinois, Indiana, Nevada and Texas, and its Newins captive agency, on April 1, 2021.
• 2022: AM Best downgraded the P&C group to A- from A in August. Kemper sold its Reserve National health subsidiary to Medical Mutual of Ohio, closing December 1, 2022.
• 2023: On August 7, Kemper announced its exit from the preferred home and auto business, now in runoff as "non-core operations." A New York renewal rights deal for part of that book was signed on August 1, 2025. Kemper also formed Kemper Reciprocal, an Illinois reciprocal exchange, in the third quarter of 2023.
• 2025: Joseph P. Lacher Jr. stepped down as CEO on October 15 after about a decade. General counsel C. Thomas Evans Jr. served as interim CEO.
• 2026: Kemper sold its Newins captive-agent and storefront agency operation (Illinois Vehicle, A-Abana and Access Auto brands) to Confie, announced April 21. McAnena, formerly chief operating officer of Horace Mann, became CEO on June 1. Eric Kappler, formerly president of Bristol West, joined on July 30 as president of P&C, overseeing personal and commercial vehicle lines. Kemper took a $460 million goodwill impairment in the second quarter and, according to AM Best, sold its Kemper Financial Indemnity Company subsidiary on September 1.

Business insurance products

Commercial auto. Kemper Auto Commercial covers a single owner-operator up to a small fleet, with body types from pickups to vans. Kemper says it covers more than 1,000 occupations. Policies can add:

• 24/7 roadside assistance (towing, jump-starts, fuel delivery, lockouts, tire changes);
• a general liability endorsement on the commercial auto policy;
• flexible payment plans with low down payments, monthly or quarterly installments, and cash or third-party payment channels where allowed.

The general liability endorsement deserves a close read. It covers bodily injury and property damage away from premises you own or rent, plus defense costs, and is built for contractors who work out of their trucks. It deliberately excludes premises coverage. A contractor with a shop, a yard or a storefront needs a separate commercial general liability policy, and the endorsement may not satisfy a subcontract that requires a stand-alone CGL. See commercial auto insurance: what it covers and what it leaves out and commercial vs personal auto: when you need a business auto policy.

Business owner's policy. Kemper's site offers a business owner's policy, but placed with non-affiliated insurers, not written on Kemper paper.

Who it insures

Kemper's 10-K describes the commercial auto target as "contractors, short-haul delivery, and sales/services," aligned with its nonstandard personal auto book in footprint and distribution. In practice that means trades such as Landscaping business insurance, Handyman insurance and plumbers, local delivery operators, and service businesses whose vehicles run locally. Kemper's site does not describe long-haul trucking or large fleets.

Kemper Auto Commercial is sold in Arizona, California, Colorado, Connecticut, Florida, Georgia, Pennsylvania and Texas. The P&C segment as a whole is concentrated: in 2025 California provided 63% of its premium, Florida 16% and Texas 11%.

How to buy

Through an independent agent. The P&C segment uses about 17,800 independent agents and brokers, with smaller direct and captive channels. Kemper also lists a commercial quote line, 877-352-0069, and an agent finder. Underwriting follows nonstandard auto practice: driver records, vehicle use and garaging drive the price, and minimum or low limits are common in this market. If a client contract requires $1 million auto liability or a stand-alone CGL, confirm the limits and forms before you bind.

Claims

New auto and commercial auto claims can be reported online or by phone at 800-353-6737 (800-3KEMPER), 8 a.m. to 7 p.m. Central on weekdays and 11 a.m. to 6 p.m. Saturdays, by fax at 888-976-2123, or by email to [email protected]. Policies written by American Access Casualty use 630-645-7755. Kemper has a glass claim option, a repair shop finder and towing reimbursement claims.

Commercial auto claims have cost more than Kemper expected. In 2025 it recorded $76.5 million of adverse reserve development in commercial auto, which it attributed to evolving loss patterns and higher defense costs on attorney-represented bodily injury claims. That added $23.9 million more in the first half of 2026. This is the social inflation trend behind rising commercial auto premiums generally.

Financial strength and ratings

On September 11, 2026, AM Best affirmed the Financial Strength Rating of A- (Excellent) and Long-Term Issuer Credit Rating of "a-" for the Kemper Property & Casualty Group and Kemper Life Group, and the "bbb-" issuer rating of Kemper Corporation. It revised all outlooks to negative from stable. AM Best cited earnings deterioration in P&C through late 2025 and early 2026, concentration in California auto, higher claim severity after California raised minimum auto liability limits in 2025, and parent financial leverage of 28.6% at June 30, 2026. It rated P&C operating performance marginal and the balance sheet very strong. AM Best had lowered the P&C group to A- from A in August 2022.

Kemper's commercial auto combined ratio was 99.7% in 2025 (94.0% in 2024 and 100.0% in 2023), with an underlying combined ratio of 90.9%. It was 98.2% in the first half of 2026. Kemper earned $143.3 million in 2025, down from $317.8 million in 2024, and lost $466.5 million in the first half of 2026, mostly from the goodwill impairment.

Strengths and weaknesses

Kemper offers small-business auto coverage for buyers that preferred carriers often turn down or price high, and the line is growing. The parent is under earnings pressure, its ratings carry a negative outlook, and its commercial auto reserves have needed strengthening.

• Strengths: Commercial auto is a growth line, up 56% in net written premium from 2023 to 2025, with no announced exit. Covers more than 1,000 occupations, one-vehicle operators and pickups to vans. Flexible payment plans, including cash and third-party payment channels. Roadside assistance and a general liability endorsement for contractors who work from their vehicles.
• Weaknesses: Commercial auto sold in only eight states. The GL endorsement has no premises coverage and does not replace a CGL policy. AM Best moved the A- ratings to a negative outlook in September 2026. Adverse commercial auto reserve development ($76.5 million in 2025), a 2026 goodwill impairment and repeated leadership changes since October 2025.

How to contact Kemper