Moody’s changes Kemper outlook to stable

Moody's Investors Service said it affirmed the Baa3 senior debt rating of Kemper Corp. and changed the outlook on Kemper and its subsidiaries to stable from positive.

“According to Moody's, the ratings affirmation and stable outlook reflect Kemper's diversified revenues and earnings from its non-standard personal auto insurance and life businesses, its profitable home service insurance business, solid risk-adjusted subsidiary capitalization and high-quality fixed income portfolio. Credit challenges include the group's limited scale relative to larger competitors, weak profitability in its personal auto business given higher auto repair costs, higher used vehicle prices and increasing miles driven as the economy reopens,” the agency said in a press release.

Moody’s noted other challenges include the group's exposure to natural catastrophes in its homeowners business and the low growth opportunities in the home service life insurance business.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.