AM Best Affirms Credit Ratings of Kemper Corporation, Its Affiliates and Subsidiaries
Lastly, AM Best has withdrawn the FSR of A- (Excellent) and the Long-Term ICR of 鈥渁-鈥� (Excellent) of Infinity Preferred Insurance Company (
The ratings of Kemper P&C reflect its balance sheet strength, which AM Best assesses as very strong, as well as its marginal operating performance, neutral business profile and appropriate enterprise risk management (ERM).
Kemper P&C鈥檚 very strong balance sheet strength assessment reflects its strongest level of risk-adjusted capitalization, as measured by Best鈥檚 Capital Adequacy Ratio (BCAR), supported by excellent financial flexibility and generally favorable reserve development trends. While the group and overall consolidated Kemper Corporation experienced volatility in results between 2021 and 2023, leading to material surplus swings and heightened underwriting and financial leverage, results and key balance sheet metrics have improved markedly in 2024 and through 2025 thus far. The group has returned to generating underwriting gains, which has strengthened surplus levels and stabilized risk-adjusted capitalization. Furthermore, Kemper鈥檚 financial leverage has improved substantially through the first half of 2025 owing to the company paying down all of its
The group also continues to benefit from the implicit and explicit support from its parent company, as well as strategic initiatives such as the exit from preferred home and auto lines and the Kemper Bermuda initiative. These initiatives have provided meaningful capital relief at the enterprise level. However, AM Best notes that Kemper鈥檚 capital management policy is aimed at maintaining capital fungibility across the organization. As such, the P&C operating entities are expected to remain a significant source of dividends going forward as profitability continues to improve.
Kemper P&C鈥檚 operating performance is currently assessed as marginal, primarily due to significant underwriting losses sustained over the past five years. However, recent results indicate meaningful improvement and stabilization, as the group鈥檚 profitability initiatives led to operating income gains in 2024 and through the first half of 2025. Key contributors to this turnaround include rate increases 鈥� primarily in the group鈥檚 primary market of
The ratings of Kemper Life reflect its balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, neutral business profile, appropriate ERM, and consideration of the group鈥檚 affiliation with lead rating unit, Kemper P&C.
In 2022, Kemper Life announced that it was entering into an agreement with Kemper Bermuda to cede
The FSR of A- (Excellent) and the Long-Term ICRs of 鈥渁-鈥� (Excellent) have been affirmed with stable outlooks for the members of Kemper Property & Casualty Group:
- 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 FSR of A- (Excellent) and the Long-Term ICRs of 鈥渁-鈥� (Excellent) have been affirmed with stable outlooks for the members of Kemper Life Group:
- United Insurance Company of America
- Mutual Savings Life Insurance Company
- The Reliable Life Insurance Company
- Union National Life Insurance Company
The following Long-Term IRs have been affirmed with stable outlooks:
Kemper Corporation鈥�
-- 鈥渂bb-鈥� (Good) on
-- 鈥渂bb-鈥� (Good) on
-- 鈥渂b鈥� (Fair) on
The following indicative Long-Term IRs under the shelf registration have been affirmed with stable outlooks for the shelf registration:
Kemper Corporation鈥�
-- 鈥渂bb-鈥� (Good) on senior unsecured debt
-- 鈥渂b+鈥� (Fair) on subordinated debt
-- 鈥渂b鈥� (Fair) on preferred stock
This press release relates to Credit Ratings that have been published on AM Best鈥檚 website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best鈥檚 web page. For additional information regarding the use and limitations of Credit Rating opinions, please view . For information on the proper use of Best鈥檚 Credit Ratings, Best鈥檚 Performance Assessments, Best鈥檚 Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best鈥檚 Ratings & Assessments.
AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in
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Cristian Sieira
Senior Financial Analyst
+1 908 882 2315
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Alan Murray
Director
+1 908 882 2195
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Christopher Sharkey
Associate Director, Public Relations
+1 908 882 2310
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Al Slavin
Senior Public Relations Specialist
+1 908 882 2318
[email protected]
Source: AM Best
