Chart here: [https://imgur.com/a/GXUrOcC](https://imgur.com/a/GXUrOcC)
Simply put:
Loss ratio goes bad → stock falls
File / get California Department of Insurance (CDI) approvals (Prop 103 \~6.9% rounds)
Rates earn in over \~12 months on 6-month policies
Loss ratio improves → stock goes up
We are now in the trough of the cycle. Target price $50 in 12-18 months.
I posted a full KMPR write-up here earlier: [https://www.reddit.com/r/ValueInvesting/comments/1tr8il0/kmpr\_a\_60down\_insurance\_company\_trading\_near/](https://www.reddit.com/r/ValueInvesting/comments/1tr8il0/kmpr_a_60down_insurance_company_trading_near/)
