Kemper's stock experienced a sharp decline of 13.78% in after-hours trading following the release of its first-quarter financial results, which fell short of analyst expectations.

The company reported a net loss of $1.7 million for Q1, swinging from a profit in the prior year. Adjusted earnings per share came in at $0.21, significantly missing the consensus estimate of $0.80. Revenue also declined to $1.11 billion, below the expected $1.12 billion, driven by challenges in its specialty personal auto business, particularly in California where higher claim severity and frequency hurt results.

Concurrently, Kemper announced a reduction in its credit agreement borrowing capacity from $600 million to $350 million, a move aimed at lowering annual fees as the company targets lower corporate expenses. The combined impact of the disappointing earnings and strategic financial adjustment contributed to the significant after-hours sell-off.