Kemper Corporation (NYSE: KMPR) saw its stock plummet 6.16% in after-hours trading on Tuesday, following the release of its second-quarter earnings report that fell short of analyst expectations. The sharp decline came despite the company's announcement of a new $500 million share repurchase authorization.

The insurance provider reported quarterly earnings of $1.30 per share, missing the analyst consensus estimate of $1.52 by 14.3%. This represents an 8.45% decrease from earnings of $1.42 per share in the same period last year. While Kemper's quarterly sales of $1.226 billion beat the analyst consensus estimate of $1.119 billion by 9.52%, the earnings miss appears to have overshadowed this positive result.

Further details from the earnings report reveal that Kemper's Q2 net income declined to $72.6 million from $75.4 million year-over-year, while adjusted consolidated net operating income fell to $84.1 million from $91.7 million. The company's Specialty P&C segment saw a decrease in adjusted net operating income due to a higher underlying combined ratio and adverse prior year development. However, the Life Insurance segment showed improvement, driven by increased net investment income. Despite these mixed results and the announcement of a significant share buyback program, investors seem to be focusing on the earnings shortfall, leading to the substantial after-hours sell-off.