S&P alters Kemper view to negative

S&P said it changed its outlook for Kemper Corp. and its core subsidiaries to negative from stable and affirmed their ratings.

“The outlook revision follows the material weakening of Kemper's operating performance due to sustained loss severity stemming from chip shortages, rising used-car prices, labor shortages, and greater attorney involvement negatively affecting the automobile insurance lines of business. Kemper's overall book of business is heavily concentrated in nonstandard auto, with limited business line and geographic diversification to offset the inflationary challenges associated with its non-life business,” the agency said in a press release.

The outlook indicates a possible one-notch downgrade within the next 24 months unless Kemper improves its operating metrics and perform more in line with expectations and similarly rated peers, S&P said.

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