Kemper Corporation (NYSE: KMPR) reported net income of $75.4
million, or $1.16 per diluted share, for the second quarter of
2024, compared to a net loss of $97.1 million, or $(1.52) per
share, for the second quarter of 2023.
Adjusted Consolidated Net Operating Income1 was $91.7 million,
or $1.42 per diluted share, for the second quarter of 2024,
compared to Adjusted Consolidated Net Operating Loss1 of $14.2
million, or $(0.22) per share, for the second quarter of 2023.
Key themes of the quarter include:
- Profitability continued to improve sequentially generating an
11.5% ROE and a 17.6% Adjusted ROE1
- Specialty P&C underlying combined ratio1 improved 4.0
points sequentially to 89.6%, a 12.4 point improvement over
2Q’23
- Specialty P&C achieved 4.6% sequential quarter PIF
growth
- Underlying business fundamentals in the Life business remain
stable
- Parent liquidity remains strong at $1.1 billion; insurance
companies remain well capitalized
“I’m proud of the strong results and progress we achieved this
quarter,” said Joseph P. Lacher, Jr., President and CEO. “Notably,
we delivered a third straight quarter of operating profitability, a
combined ratio well below our long-term target in our Specialty
Auto business, and generated 4.6% sequential quarter
policies-in-force growth for that business. Our distinctive
competitive advantages for our businesses and laser focus on
long-term profitable growth will enable us to continue to maximize
shareholder value.”
*NOTE: In third quarter 2023, the Company finalized the
establishment of Kemper Reciprocal, an Illinois-domiciled
reciprocal insurance exchange that began writing policies in
September 2023. The results of Kemper Reciprocal are consolidated
under US GAAP.
Unless specified otherwise, discussion of our second quarter
2024 results is focused on net income attributable to Kemper
Corporation common shareholders, which does not include financial
results from Kemper Reciprocal that are presented within the
condensed consolidated financial results in this release.
1 Non-GAAP financial measure. All Non-GAAP
financial measures are denoted with footnote 1 throughout this
release. See “Use of Non-GAAP Financial Measures” for additional
information.
Three Months Ended
Six Months Ended
(Dollars in Millions, Except Per Share
Amounts) (Unaudited)
Jun 30, 2024
Jun 30, 2023
Jun 30, 2024
Jun 30, 2023
Net Income (Loss)
$
75.4
$
(97.1
)
$
146.7
$
(177.2
)
Adjusted Consolidated Net Operating Income
(Loss)1
$
91.7
$
(14.2
)
$
161.4
$
(69.9
)
Impact of Catastrophe Losses and Related
Loss Adjustment Expense (LAE) on Net Income (Loss)
$
(22.4
)
$
(31.2
)
$
(35.0
)
$
(51.7
)
Diluted Net Income (Loss) Per Share
From:
Net Income (Loss)
$
1.16
$
(1.52
)
$
2.26
$
(2.77
)
Adjusted Consolidated Net Operating Income
(Loss)1
$
1.42
$
(0.22
)
$
2.49
$
(1.09
)
Impact of Catastrophe Losses and Related
LAE on Net Income (Loss) Per Share
$
(0.35
)
$
(0.70
)
$
(0.54
)
$
(1.02
)
Revenues
Total revenues for the second quarter of 2024 decreased $132.9
million, or 10.5 percent, to $1,129.9 million, compared to the
second quarter of 2023, mostly driven by a $69.7 million decrease
from the Specialty Property & Casualty Insurance segment due to
continued lower new business volumes resulting from targeted
actions to improve profitability, partially offset by higher
average earned premium per exposure resulting from rate increases.
The decrease was also due to $62.1 million in lower premiums from
our Preferred Insurance business, reported as Non-Core Operations,
due primarily to lower volumes resulting from the decision to exit
and run-off the business in the third quarter of 2023 as well as
ongoing profit improvement actions.
Segment Results
Unless otherwise noted, (i) the segment results discussed below
are presented on an after-tax basis, (ii) prior-year development
includes both catastrophe and non-catastrophe losses and LAE, (iii)
catastrophe losses and LAE exclude the impact of prior-year
development, (iv) loss ratio includes loss and LAE, and (v) all
comparisons are made to the prior year quarter unless otherwise
stated.
Three Months Ended
Six Months Ended
(Dollars in Millions) (Unaudited)
Jun 30, 2024
Jun 30, 2023
Jun 30, 2024
Jun 30, 2023
Segment Adjusted Net Operating Income
(Loss):
Specialty Property & Casualty
Insurance
$
102.3
$
(10.8
)
$
171.5
$
(69.2
)
Life Insurance
(0.2
)
8.9
11.7
22.1
Total Segment Adjusted Net Operating
Income (Loss)
102.1
(1.9
)
183.2
(47.1
)
Corporate and Other Adjusted Net Operating
Loss
(11.4
)
(12.3
)
(23.9
)
(22.8
)
Less: Net Loss attributable to
Noncontrolling Interest
(1.0
)
—
(2.1
)
—
Adjusted Consolidated Net Operating Income
(Loss)1
91.7
(14.2
)
161.4
(69.9
)
Net (Loss) Income From:
Change in Fair Value of Equity and
Convertible Securities
(1.0
)
1.9
1.7
3.2
Net Realized Investment Gains (Losses)
1.2
(12.5
)
6.4
(7.4
)
Impairment Losses
(0.1
)
(0.8
)
(1.3
)
0.9
Acquisition and Disposition Related
Transaction, Integration, Restructuring and Other Costs
(5.1
)
(23.3
)
(15.2
)
(46.3
)
Debt Extinguishment, Pension Settlement
and Other Charges
2.1
—
2.1
—
Goodwill Impairment Charge
—
(45.5
)
—
(45.5
)
Non-Core Operations
(13.4
)
(2.7
)
(8.4
)
(12.2
)
Net Income (Loss) attributable to Kemper
Corporation
$
75.4
$
(97.1
)
$
146.7
$
(177.2
)
The Specialty Property and Casualty Insurance segment reported
adjusted net operating income of $102.3 million for the second
quarter of 2024, compared to an adjusted net operating loss of
$10.8 million in the second quarter of 2023. This increase in
results was due primarily to an improvement in the Underlying
Combined Ratio1 and lower prior year loss and LAE development. The
segment’s Underlying Combined Ratio1 was 89.6 percent compared to
102.0 percent in the second quarter of 2023. The improvement was
primarily driven by higher average earned premiums per exposure
resulting from rate increases and lower underlying claim
frequency.
The Life Insurance segment reported adjusted net operating loss
of $0.2 million for the second quarter of 2024, compared to an
adjusted net operating income of $8.9 million in the second quarter
of 2023. The decrease in results was primarily driven by a
reduction in net investment income that included an $11.9 million
after-tax loss from an investment valuation adjustment on one real
estate investment in our alternative investment portfolio.
Capital
Total Kemper Corporation Shareholders’ Equity at the end of the
quarter was $2,671.2 million, an increase of $166.0 million, or 7
percent, since year-end 2023 primarily driven by net income for the
year. Kemper and its direct non-insurance subsidiaries ended the
quarter with cash and investments of $376.5 million, and $458.0
million of available borrowing capacity under the revolving credit
agreement.
On May 1, 2024, Kemper announced that its Board of Directors
declared a quarterly dividend of $0.31 per share, or $20.3 million.
The dividend was paid on May 28, 2024, to its shareholders of
record as of May 13, 2024.
Kemper ended the quarter with a book value per share of $41.46,
an increase of 6 percent from $39.08 at the end of 2023. Adjusted
book value per share1 was $27.14 at the end of the quarter,
compared to $25.39 at the end of 2023.
Unaudited Condensed Consolidated Statements of Income (Loss)
for the three and six months ended June 30, 2024 and 2023 are
presented below.
Three Months Ended
Six Months Ended
(Dollars in Millions, Except Per Share
Amounts)
Jun 30, 2024
Jun 30, 2023
Jun 30, 2024
Jun 30, 2023
Revenues:
Earned Premiums (Changes in Deferred
Profit Liability for the Three Months Ended: 2024 - $16.7; 2023 -
$16.5 and Six Months Ended: 2024 - $36.4; 2023 - $35.7)
$
1,033.7
$
1,166.9
$
2,065.6
$
2,347.8
Net Investment Income
93.0
106.3
193.4
208.1
Change in Value of Alternative Energy
Partnership Investments
0.6
0.8
1.0
1.5
Other Income
2.4
1.7
4.2
2.9
Change in Fair Value of Equity and
Convertible Securities
(1.2
)
2.4
2.2
4.1
Net Realized Investment Gains (Losses)
1.5
(14.4
)
8.1
(8.0
)
Impairment Losses
(0.1
)
(0.9
)
(1.6
)
1.2
Total Revenues
1,129.9
1,262.8
2,272.9
2,557.6
Expenses:
Policyholders’ Benefits and Incurred
Losses and Loss Adjustment Expenses (Changes in Liability for
Future Policyholder Benefits for the Three Months Ended: 2024 -
$1.6; 2023 - $0.6 and Six Months Ended: 2024 - $7.6; 2023 -
$2.5)
744.4
984.7
1,500.4
2,036.7
Insurance Expenses
244.3
266.1
485.0
535.4
Interest and Other Expenses
49.3
78.3
109.0
155.7
Goodwill Impairment
—
49.6
—
49.6
Total Expenses
1,038.0
1,378.7
2,094.4
2,777.4
Income (Loss) before Income Taxes
91.9
(115.9
)
178.5
(219.8
)
Income Tax (Expense) Benefit
(17.5
)
18.8
(33.9
)
42.6
Net Income (Loss)
74.4
(97.1
)
$
144.6
$
(177.2
)
Less: Net Loss attributable to
Noncontrolling Interest
(1.0
)
—
(2.1
)
—
Net Income (Loss) attributable to Kemper
Corporation
$
75.4
$
(97.1
)
$
146.7
$
(177.2
)
Net Income (Loss) attributable to
Kemper Corporation per Unrestricted Share:
Basic
$
1.17
$
(1.52
)
$
2.28
$
(2.77
)
Diluted
$
1.16
$
(1.52
)
$
2.26
$
(2.77
)
Weighted-average Outstanding (Shares in
Thousands):
Unrestricted Shares - Basic
64,395.0
64,008.5
64,324.7
63,977.7
Unrestricted Shares and Equivalent Shares
- Diluted
64,891.6
64,008.5
64,832.1
63,977.7
Dividends Paid to Shareholders per
Share
$
0.31
$
0.31
$
0.62
$
0.62
Unaudited business segment revenues for the three and six
months ended June 30, 2024 and 2023 are presented below.
Three Months Ended
Six Months Ended
(Dollars in Millions)
Jun 30, 2024
Jun 30, 2023
Jun 30, 2024
Jun 30, 2023
REVENUES:
Specialty Property & Casualty
Insurance:
Earned Premiums:
Personal Automobile
$
691.5
$
766.6
$
1,366.8
$
1,554.5
Commercial Automobile
171.1
165.7
335.8
322.0
Total Earned Premiums
862.6
932.3
1,702.6
1,876.5
Net Investment Income
46.6
44.5
87.7
83.0
Change in Value of Alternative Energy
Partnership Investments
0.3
0.4
0.6
0.8
Other Income
1.3
0.7
2.4
1.6
Total Specialty Property & Casualty
Insurance Revenues
910.8
977.9
1,793.3
1,961.9
Life Insurance:
Earned Premiums:
Life
84.4
84.8
165.0
167.0
Accident & Health
5.6
5.8
11.2
11.7
Property
10.8
11.6
21.9
22.8
Total Earned Premiums
100.8
102.2
198.1
201.5
Net Investment Income
30.5
47.1
74.8
96.9
Change in Value of Alternative Energy
Partnership Investments
0.1
0.2
0.2
0.4
Other Income (Loss)
0.1
0.1
0.3
(0.3
)
Total Life Insurance Revenues
131.5
149.6
273.4
298.5
Total Segment Revenues
1,042.3
1,127.5
2,066.7
2,260.4
Change in Fair Value of Equity and
Convertible Securities
(1.2
)
2.4
2.2
4.1
Net Realized Investment Gains (Losses)
1.5
(14.4
)
8.1
(8.0
)
Net Impairment Losses Recognized in
Earnings
(0.1
)
(0.9
)
(1.6
)
1.2
Non-Core Operations
83.8
145.7
190.0
293.7
Other
3.6
2.5
7.5
6.2
Total Revenues
$
1,129.9
$
1,262.8
$
2,272.9
$
2,557.6
KEMPER CORPORATION AND
SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE
SHEETS
(Dollars in Millions)
(Unaudited)
Jun 30, 2024
Dec 31, 2023
Assets:
Investments:
Fixed Maturities at Fair Value
$
6,674.7
$
6,881.9
Equity Securities at Fair Value
226.6
225.8
Equity Method Limited Liability
Investments
205.1
221.7
Alternative Energy Partnership
Investments
17.3
17.3
Short-term Investments at Cost which
Approximates Fair Value
539.1
520.9
Company-Owned Life Insurance
523.3
513.5
Loans to Policyholders
279.8
281.2
Other Investments
202.4
241.9
Total Investments
8,668.3
8,904.2
Cash
107.4
64.1
Receivables from Policyholders
988.0
959.5
Other Receivables
191.5
200.5
Deferred Policy Acquisition Costs
608.0
591.6
Goodwill
1,250.7
1,250.7
Current Income Tax Assets
56.5
64.5
Deferred Income Tax Assets
185.0
210.4
Other Assets
476.4
492.6
Assets of Consolidated Variable Interest
Entity
Fixed Maturities at Fair Value
1.6
1.7
Short-term Investments at Cost which
Approximates Fair Value
4.8
2.0
Receivables from Policyholders
5.2
0.7
Deferred Policy Acquisition Costs
0.3
0.1
Other Assets
—
0.1
Total Assets
$
12,544.3
$
12,742.7
KEMPER CORPORATION AND
SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE
SHEETS (Continued)
(Dollars in Millions)
(Unaudited)
Jun 30, 2024
Dec 31, 2023
Liabilities and Shareholders’
Equity:
Insurance Reserves:
Life & Health
$
3,202.0
$
3,422.4
Property & Casualty
2,567.2
2,680.5
Total Insurance Reserves
5,769.2
6,102.9
Unearned Premiums
1,301.5
1,300.8
Policyholder Obligations
644.4
655.7
Deferred Income Tax Liabilities
68.3
50.6
Accrued Expenses and Other Liabilities
693.8
737.7
Long-term Debt, Current, at Amortized
Cost
449.8
—
Long-term Debt, Non-current, at Amortized
Cost
940.6
1,389.2
Liabilities of Consolidated Variable
Interest Entity
Insurance Reserves
2.4
—
Unearned Premiums
4.9
0.5
Accrued Expenses and Other Liabilities
0.1
0.3
Total Liabilities
9,875.0
10,237.7
Kemper Corporation Shareholders’
Equity:
Common Stock
6.4
6.4
Paid-in Capital
1,860.9
1,845.3
Retained Earnings
1,121.2
1,014.3
Accumulated Other Comprehensive Loss
(317.3
)
(360.8
)
Total Kemper Corporation Shareholders’
Equity
2,671.2
2,505.2
Noncontrolling Interest
(1.9
)
(0.2
)
Total Shareholders’ Equity
2,669.3
2,505.0
Total Liabilities and Shareholders’
Equity
$
12,544.3
$
12,742.7
Unaudited selected financial information for the Specialty
Property & Casualty Insurance segment follows.
Three Months Ended
Six Months Ended
(Dollars in Millions)
Jun 30, 2024
Jun 30, 2023
Jun 30, 2024
Jun 30, 2023
Results
of Operations
Net Premiums Written
$
933.9
$
830.6
$
1,798.5
$
1,852.7
Earned Premiums
$
862.6
$
932.3
$
1,702.6
$
1,876.5
Net Investment Income
46.6
44.5
87.7
83.0
Change in Value of Alternative Energy
Partnership Investments
0.3
0.4
0.6
0.8
Other Income
1.3
0.7
2.4
1.6
Total Revenues
910.8
977.9
1,793.3
1,961.9
Incurred Losses and LAE related to:
Current Year:
Non-catastrophe Losses and LAE
592.8
763.9
1,201.8
1,589.3
Catastrophe Losses and LAE
10.3
17.4
14.4
25.8
Prior Years:
Non-catastrophe Losses and LAE
(0.8
)
25.0
4.5
56.6
Catastrophe Losses and LAE
(0.1
)
(0.9
)
0.6
(1.4
)
Total Incurred Losses and LAE
602.2
805.4
1,221.3
1,670.3
Insurance Expenses
180.7
187.5
357.6
381.3
Segment Adjusted Operating Income
(Loss)
127.9
(15.0
)
214.4
(89.7
)
Income Tax (Expense) Benefit
(25.6
)
4.2
(42.9
)
20.5
Total Segment Adjusted Net Operating
Income (Loss)
$
102.3
$
(10.8
)
$
171.5
$
(69.2
)
Ratios
Based On Earned Premiums
Current Year Non-catastrophe Losses and
LAE Ratio
68.7
%
81.9
%
70.6
%
84.7
%
Current Year Catastrophe Losses and LAE
Ratio
1.2
1.9
0.8
1.4
Prior Years Non-catastrophe Losses and LAE
Ratio
(0.1
)
2.7
0.3
3.0
Prior Years Catastrophe Losses and LAE
Ratio
—
(0.1
)
—
(0.1
)
Total Incurred Loss and LAE Ratio
69.8
86.4
71.7
89.0
Insurance Expense Ratio
20.9
20.1
21.0
20.3
Combined Ratio
90.7
%
106.5
%
92.7
%
109.3
%
Underlying Combined Ratio1
Current Year Non-catastrophe Losses and
LAE Ratio
68.7
%
81.9
%
70.6
%
84.7
%
Insurance Expense Ratio
20.9
20.1
21.0
20.3
Underlying Combined Ratio1
89.6
%
102.0
%
91.6
%
105.0
%
Non-GAAP
Measure Reconciliation
Combined Ratio
90.7
%
106.5
%
92.7
%
109.3
%
Less:
Current Year Catastrophe Losses and LAE
Ratio
1.2
1.9
0.8
1.4
Prior Years Non-catastrophe Losses and LAE
Ratio
(0.1
)
2.7
0.3
3.0
Prior Years Catastrophe Losses and LAE
Ratio
—
(0.1
)
—
(0.1
)
Underlying Combined Ratio1
89.6
%
102.0
%
91.6
%
105.0
%
Unaudited selected financial information for the Life
Insurance segment follows.
Three Months Ended
Six Months Ended
(Dollars in Millions)
Jun 30, 2024
Jun 30, 2023
Jun 30, 2024
Jun 30, 2023
Results
of Operations
Earned Premiums
$
100.8
$
102.2
$
198.1
$
201.5
Net Investment Income
30.5
47.1
74.8
96.9
Change in Value of Alternative Energy
Partnership Investments
0.1
0.2
0.2
0.4
Other Income (Loss)
0.1
0.1
0.3
(0.3
)
Total Revenues
131.5
149.6
273.4
298.5
Policyholders’ Benefits and Incurred
Losses and LAE
63.9
68.3
126.9
138.2
Insurance Expenses
69.0
71.2
133.9
135.4
Segment Adjusted Operating (Loss)
Income
(1.4
)
10.1
12.6
24.9
Income Tax Benefit (Expense)
1.2
(1.2
)
(0.9
)
(2.8
)
Total Segment Adjusted Net Operating
(Loss) Income
$
(0.2
)
$
8.9
$
11.7
$
22.1
Use of Non-GAAP Financial Measures
Adjusted Consolidated Net Operating Income
(Loss)1 is an after-tax, non-GAAP financial measure and is
computed by excluding from Net Income (Loss) attributable to Kemper
Corporation the after-tax impact of:
(i) Change in Fair Value of Equity and
Convertible Securities; (ii) Net Realized Investment Gains
(Losses); (iii) Impairment Losses; (iv) Acquisition and Disposition
Related Transaction, Integration, Restructuring and Other Costs;
(v) Debt Extinguishment, Pension Settlement and Other Charges; (vi)
Goodwill Impairment Charges; (vii) Non-Core Operations; and (viii)
Significant non-recurring or infrequent items that may not be
indicative of ongoing operations
Significant non-recurring items are excluded when (a) the nature
of the charge or gain is such that it is reasonably unlikely to
recur within two years, and (b) there has been no similar charge or
gain within the prior two years. The most directly comparable GAAP
financial measure is Net Income (Loss) attributable to Kemper
Corporation. There were no applicable significant non-recurring
items that Kemper excluded from the calculation of Adjusted
Consolidated Net Operating Income (Loss)1 for the three and six
months ended June 30, 2024 or 2023.
Kemper believes that Adjusted Consolidated Net Operating Income
(Loss)1 provides investors with a valuable measure of its ongoing
performance because it reveals underlying operational performance
trends that otherwise might be less apparent if the items were not
excluded. Change in Fair Value of Equity and Convertible
Securities, Net Realized Investment Gains (Losses) and Impairment
Losses related to investments included in Kemper’s results may vary
significantly between periods and are generally driven by business
decisions and external economic developments such as capital market
conditions that impact the values of Kemper’s investments, the
timing of which is unrelated to the insurance underwriting process.
Acquisition and Disposition Related Transaction, Integration,
Restructuring and Other Costs may vary significantly between
periods and are generally driven by the timing of acquisitions and
business decisions which are unrelated to the insurance
underwriting process. Debt Extinguishment, Pension Settlement and
Other Charges relate to (i) loss from early extinguishment of debt,
which is driven by Kemper’s financing and refinancing decisions and
capital needs, as well as external economic developments such as
debt market conditions, the timing of which is unrelated to the
insurance underwriting process; (ii) settlement of pension plan
obligations which are business decisions made by Kemper, the timing
of which is unrelated to the underwriting process; and (iii) other
charges that are non-standard, not part of the ordinary course of
business, and unrelated to the insurance underwriting process.
Goodwill Impairment Charges are excluded because they are
infrequent and non-recurring charges. Non-Core Operations includes
the results of our Preferred Insurance business which we expect to
fully exit. These results are excluded because they are irrelevant
to our ongoing operations and do not qualify for Discontinued
Operations under Generally Accepted Accounting Principles ("GAAP").
Significant non-recurring items are excluded because, by their
nature, they are not indicative of Kemper’s business or economic
trends. The preceding non-GAAP financial measures should not be
considered a substitute for the comparable GAAP financial measures,
as they do not fully recognize the profitability of Kemper’s
businesses.
A reconciliation of Net Income (Loss) attributable to Kemper
Corporation to Adjusted Consolidated Net Operating Income (Loss)1
for the three and six months ended June 30, 2024 and 2023 is
presented below.
Three Months Ended
Six Months Ended
(Dollars in Millions) (Unaudited)
Jun 30, 2024
Jun 30, 2023
Jun 30, 2024
Jun 30, 2023
Net Income (Loss) attributable to Kemper
Corporation
$
75.4
$
(97.1
)
$
146.7
$
(177.2
)
Less Net (Loss) Income From:
Change in Fair Value of Equity and
Convertible Securities
(1.0
)
1.9
1.7
3.2
Net Realized Investment Gains (Losses)
1.2
(12.5
)
6.4
(7.4
)
Impairment Losses
(0.1
)
(0.8
)
(1.3
)
0.9
Acquisition and Disposition Related
Transaction, Integration, Restructuring and Other Costs
(5.1
)
(23.3
)
(15.2
)
(46.3
)
Debt Extinguishment, Pension Settlement
and Other Charges
2.1
—
2.1
—
Goodwill Impairment Charge
—
(45.5
)
—
(45.5
)
Non-Core Operations
(13.4
)
(2.7
)
(8.4
)
(12.2
)
Adjusted Consolidated Net Operating Income
(Loss)1
$
91.7
$
(14.2
)
$
161.4
$
(69.9
)
Diluted Adjusted Net Operating Income
(Loss) per Unrestricted Share1 is a non-GAAP financial
measure computed by dividing Adjusted Net Operating Income (Loss)1
attributed to unrestricted shares by the weighted-average
unrestricted shares and equivalent shares outstanding. The most
directly comparable GAAP financial measure is Diluted Net Loss per
Unrestricted Share.
A reconciliation of Diluted Net Income (Loss) per Unrestricted
Share to Diluted Adjusted Net Operating Income (Loss) per
Unrestricted Share1 for the three and six months ended June 30,
2024 and 2023 is presented below.
Three Months Ended
Six Months Ended
(Unaudited)
Jun 30, 2024
Jun 30, 2023
Jun 30, 2024
Jun 30, 2023
Diluted Net Income (Loss) attributable to
Kemper Corporation per Unrestricted Share
$
1.16
$
(1.52
)
$
2.26
$
(2.77
)
Less Net (Loss) Income per Unrestricted
Share From:
Change in Fair Value of Equity and
Convertible Securities
(0.02
)
0.03
0.03
0.05
Net Realized Investment Gains (Losses)
0.02
(0.20
)
0.10
(0.12
)
Impairment Losses
—
(0.02
)
(0.02
)
0.01
Acquisition and Disposition Related
Transaction, Integration, Restructuring and Other Costs
(0.08
)
(0.36
)
(0.24
)
(0.72
)
Debt Extinguishment, Pension Settlement
and Other Charges
0.03
—
0.03
—
Goodwill Impairment Charge
—
(0.71
)
—
(0.71
)
Non-Core Operations
(0.21
)
(0.04
)
(0.13
)
(0.19
)
Diluted Adjusted Net Operating Income
(Loss) per Unrestricted Share1
$
1.42
$
(0.22
)
$
2.49
$
(1.09
)
Return on Adjusted Shareholders'
Equity1 is a calculation that uses a non-GAAP financial
measure. It is calculated by dividing the period’s net income
attributable to Kemper Corporation by the average shareholders’
equity excluding net unrealized gains and losses on fixed
maturities, the change in discount rate on future life policyholder
benefits and goodwill. Return on Shareholders’ Equity is the most
directly comparable GAAP measure. We use this non-GAAP measure to
identify and analyze the change in performance attributable to
management efforts between periods. Kemper believes this non-GAAP
financial measure is useful to investors because it eliminates the
effect of items that can fluctuate significantly from period to
period and are generally driven by economic developments, primarily
capital market conditions, the magnitude and timing of which are
not influenced by management. Kemper believes it enhances
understanding and comparability of performance by highlighting
underlying business activity and profitability drivers. The “Return
on Adjusted Shareholders’ Equity” metric was referred to as “Return
on Tangible Shareholders’ Equity” in prior periods.
A reconciliation of Return on Shareholders’ Equity to Return on
Adjusted Shareholders’ Equity1 is presented below:
Three Months Ended
Six Months Ended
(Dollars in Millions) (Unaudited)
Jun 30, 2024
Jun 30, 2023
Jun 30, 2024
Jun 30, 2023
Numerator:
Annualized Net Income (Loss) attributable
to Kemper Corporation
$
301.6
$
(388.4
)
$
293.4
$
(354.4
)
Denominator:
Average Shareholders' Equity2
$
2,630.5
$
2,579.6
$
2,588.7
$
2,609.9
Less: Average Net Unrealized Gains and
Losses on Fixed Maturities
652.2
607.3
612.7
643.9
Less: Average Change in Discount Rate on
Future Life Policyholder Benefits
(315.1
)
(174.3
)
(263.5
)
(196.6
)
Less: Average Goodwill
(1,250.7
)
(1,275.5
)
(1,250.7
)
(1,283.8
)
Average Adjusted Shareholders' Equity2
$
1,716.9
$
1,737.1
$
1,687.2
$
1,773.4
Return on
Shareholders' Equity:
Return on Shareholders' Equity
11.5
%
(15.1
)%
11.3
%
(13.6
)%
Return on Adjusted Shareholders'
Equity1
17.6
%
(22.4
)%
17.4
%
(20.0
)%
2 Average shareholders' equity and average
adjusted shareholders’ equity for the three and six months ended is
the simple average of the beginning and ending balances for the
period. Average shareholders’ equity and average adjusted
shareholders’ equity on a year-to-date basis is the (a) the sum of
the balance at the beginning of the year and the ending balance for
each quarter within that year divided by (b) the number of quarters
in the period presented plus one.
Underlying Combined Ratio1 is a
non-GAAP financial measure. It is computed by adding the Current
Year Non-catastrophe Losses and LAE Ratio with the Insurance
Expense Ratio. The most directly comparable GAAP financial measure
is the Combined Ratio, which is computed by adding Total Incurred
Losses and LAE Ratio, including the impact of catastrophe losses
and loss and LAE reserve development from prior years, with the
Insurance Expense Ratio.
Kemper believes Underlying Losses and LAE and the Underlying
Combined Ratio are useful to investors and uses these financial
measures to reveal the trends in Kemper’s Property & Casualty
Insurance segment that may be obscured by catastrophe losses and
prior-year reserve development. These catastrophe losses may cause
Kemper’s loss trends to vary significantly between periods as a
result of their incidence of occurrence and magnitude and can have
a significant impact on incurred losses and LAE and the Combined
Ratio. Prior-year reserve developments are caused by unexpected
loss development on historical reserves. Because reserve
development relates to the re-estimation of losses from earlier
periods, it has no bearing on the performance of Kemper’s insurance
products in the current period. Kemper believes it is useful for
investors to evaluate these components separately and in the
aggregate when reviewing Kemper’s underwriting performance.
Adjusted Book Value Per Share1 is a
calculation that uses a non-GAAP financial measure. It is
calculated by dividing shareholders’ equity after excluding the
after-tax impact of net unrealized gains and losses on fixed income
securities, the change in discount rate on future life policyholder
benefits and goodwill by total Common Shares Issued and
Outstanding. Book value per share is the most directly comparable
GAAP financial measure. Kemper uses the trends in book value per
share excluding the after-tax impact of net unrealized gains and
losses on fixed income securities, the change in discount rate on
future life policyholder benefits and goodwill in conjunction with
book value per share to identify and analyze the change in net
worth excluding goodwill attributable to management efforts between
periods. Kemper believes the non-GAAP financial measure is useful
to investors because it eliminates the effect of items that can
fluctuate significantly from period to period and are generally
driven by economic developments, primarily capital market
conditions, the magnitude and timing of which are not influenced by
management. Kemper believes it enhances understanding and
comparability of performance by highlighting underlying business
activity and profitability drivers. The “Adjusted Book Value Per
Share” metric was referred to as “Tangible Book Value Per Share” in
prior periods.
A reconciliation of Book Value Per Share to Adjusted Book Value
Per Share1 is presented below:
As of
(Dollars and Shares in Millions Except Per
Share Amounts) (Unaudited)
Jun 30, 2024
Dec 31, 2023
Numerator:
Kemper Corporation Shareholders’
Equity
$
2,671.2
$
2,505.2
Less: Net Unrealized Gains and Losses on
Fixed Maturities
685.9
533.8
Less: Change in Discount Rate on Future
Life Policyholder Benefits
(358.0
)
(160.6
)
Less: Goodwill
(1,250.7
)
(1,250.7
)
Adjusted Shareholders’ Equity
$
1,748.4
$
1,627.7
Denominator:
Common Shares Issued and Outstanding
64.427
64.112
Book Value Per
Share:
Book Value Per Share
$
41.46
$
39.08
Less: Net Unrealized Gains and Losses on
Fixed Maturities
10.65
8.33
Less: Change in Discount Rate on Future
Life Policyholder Benefits
(5.56
)
(2.51
)
Less: Goodwill
(19.41
)
(19.51
)
Adjusted Book Value Per Share1
$
27.14
$
25.39
Conference Call
Kemper will host its conference call to discuss second quarter
2024 results on Monday, August 5, at 5:00 p.m. Eastern (4:00 p.m.
Central). The conference call will be accessible via the internet
and by telephone at 888.259.6580, conference ID 19792463. To
listen via webcast, register online at the investor section of
kemper.com at least 15 minutes prior to the webcast to download and
install any necessary software.
A replay of the call will be available online at the investor
section of kemper.com.
More detailed financial information can be found in Kemper’s
Investor Financial Supplement and Earnings Call Presentation for
the second quarter of 2024, which is available at the investor
section of kemper.com.
About Kemper
The Kemper family of companies is one of the nation’s leading
specialized insurers. With approximately $13 billion in assets,
Kemper is improving the world of insurance by providing affordable
and easy-to-use personalized solutions to individuals, families and
businesses through its Kemper Auto and Kemper Life brands. Kemper
serves over 4.8 million policies, is represented by approximately
22,300 agents and brokers, and has approximately 7,600 associates
dedicated to meeting the ever-changing needs of its customers.
Learn more at Kemper.com.
Caution Regarding Forward-Looking Statements
This press release may contain or incorporate by reference
information that includes or is based on forward-looking statements
within the meaning of the safe-harbor provisions of the Private
Securities Litigation Reform Act of 1995. We caution investors that
these forward-looking statements are not guarantees of future
performance, and actual results may differ materially. Such
statements involve known and unknown risks, uncertainties, and
other factors, including but not limited to:
- changes in the frequency and severity of insurance claims;
- claim development and the process of estimating claim
reserves;
- the impacts of inflation;
- changes in the interest rate environment;
- supply chain disruption;
- product demand and pricing;
- effects of governmental and regulatory actions;
- litigation outcomes and trends;
- investment risks;
- cybersecurity risks or incidents;
- impact of catastrophes; and
- other risks and uncertainties detailed in Kemper’s Annual
Report on Form 10-K and subsequent filings with the Securities and
Exchange Commission (“SEC”).
Kemper assumes no obligation to publicly correct or update any
forward-looking statements as a result of events or developments
subsequent to the date of this press release.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240805373453/en/
Investors: Michael Marinaccio, 312.661.4930 or
investors@kemper.com
Media: Barbara Ciesemier, 312.661.4521 or bciesemier@kemper.com
Grafico Azioni Kemper (NYSE:KMPR)
Storico
Da Dic 2024 a Gen 2025
Grafico Azioni Kemper (NYSE:KMPR)
Storico
Da Gen 2024 a Gen 2025
