Kemper Reports Third Quarter 2024 Operating Results*
Kemper (NYSE: KMPR) reported net income of $73.7 million, or $1.14 per diluted share, for Q3 2024, compared to a net loss of $146.3 million, or $(2.28) per share, for Q3 2023. Adjusted Consolidated Net Operating Income was $105.0 million, or $1.62 per diluted share, versus a loss of $27.8 million, or $(0.44) per share, in Q3 2023.
Kemper achieved a 10.8% ROE and a 16.7% Adjusted ROE. Specialty Property & Casualty (P&C) reported a 4.5% sequential increase in policies in force (PIF) and an underlying combined ratio of 91.3%. The Life Insurance segment posted $15.0 million in adjusted net operating income. Total revenues decreased by 1.7% to $1,178.9 million, with a $76.4 million drop in the Preferred Insurance business, offset by a $28.6 million rise in Specialty P&C premiums.
The company repurchased $25 million in stock and plans to retire $450 million of senior notes due February 2025. Shareholders' equity increased by 11% to $2,773.3 million, and the book value per share rose to $43.30.
Kemper (NYSE: KMPR) ha riportato un utile netto di 73,7 milioni di dollari, ossia 1,14 dollari per azione diluita, per il terzo trimestre del 2024, rispetto a una perdita netta di 146,3 milioni di dollari, ossia $(2,28) per azione, per il terzo trimestre del 2023. L'Utile Operativo Netto Consolidato Rettificato è stato di 105,0 milioni di dollari, ossia 1,62 dollari per azione diluita, rispetto a una perdita di 27,8 milioni di dollari, ossia $(0,44) per azione, nel terzo trimestre del 2023.
Kemper ha raggiunto un ROE del 10,8% e un ROE Rettificato del 16,7%. Il settore Proprietà e Causali Specializzati (P&C) ha registrato un incremento sequenziale del 4,5% nelle polizze in essere (PIF) e un rapporto combinato sottostante del 91,3%. Il segmento delle Assicurazioni sulla Vita ha riportato 15,0 milioni di dollari in utile operativo netto rettificato. I ricavi totali sono diminuiti del 1,7% a 1.178,9 milioni di dollari, con un calo di 76,4 milioni di dollari nel business delle Assicurazioni Preferenziali, compensato da un aumento di 28,6 milioni di dollari nei premi P&C Specializzati.
La società ha riacquistato azioni per 25 milioni di dollari e prevede di ritirare 450 milioni di dollari di note senior in scadenza a febbraio 2025. Il patrimonio netto degli azionisti è aumentato dell'11% a 2.773,3 milioni di dollari, e il valore contabile per azione è salito a 43,30 dollari.
Kemper (NYSE: KMPR) reportó un ingreso neto de 73,7 millones de dólares, o 1,14 dólares por acción diluida, para el tercer trimestre de 2024, en comparación con una pérdida neta de 146,3 millones de dólares, o $(2,28) por acción, para el tercer trimestre de 2023. El Ingreso Operativo Neto Consolidado Ajustado fue de 105,0 millones de dólares, o 1,62 dólares por acción diluida, frente a una pérdida de 27,8 millones de dólares, o $(0,44) por acción, en el tercer trimestre de 2023.
Kemper logró un ROE del 10,8% y un ROE Ajustado del 16,7%. La sección de Propiedad y Casualidad Especializada (P&C) reportó un aumento secuencial del 4,5% en las pólizas en vigor (PIF) y un ratio combinado subyacente del 91,3%. El segmento de Seguros de Vida reportó 15,0 millones de dólares en ingreso operativo neto ajustado. Los ingresos totales disminuyeron en un 1,7% a 1.178,9 millones de dólares, con una caída de 76,4 millones de dólares en el negocio de Seguros Preferenciales, compensada por un aumento de 28,6 millones de dólares en primas de P&C Especializados.
La compañía recompró acciones por 25 millones de dólares y planea retirar 450 millones de dólares en notas senior que vencen en febrero de 2025. El patrimonio neto de los accionistas aumentó un 11% a 2.773,3 millones de dólares, y el valor contable por acción subió a 43,30 dólares.
Kemper (NYSE: KMPR)는 2024년 3분기에 7,370만 달러의 순이익, 즉 희석 주당 1.14달러를 보고했습니다. 이는 2023년 3분기에 1억 4,630만 달러의 순손실, 즉 주당 $(2.28)와 비교됩니다. 조정된 통합 운영 순이익은 1억 5백만 달러, 즉 희석 주당 1.62달러로, 2023년 3분기에 2,780만 달러의 손실, 즉 주당 $(0.44)와 대조됩니다.
Kemper는 10.8%의 자기자본이익률(ROE)과 16.7%의 조정된 ROE를 달성했습니다. 전문 재산 및 상해(P&C) 부문은 기존 보험증권(PIF)에서 4.5%의 순증가와 91.3%의 기초 결합 비율을 보고했습니다. 생명보험 부문은 1,500만 달러의 조정된 운영 순이익을 기록했습니다. 총 수익은 1.7% 감소하여 11억 7,890만 달러에 이르렀으며, 우선 보험 사업에서 7,640만 달러 감소가 있었으나 전문 P&C 보험료에서 2,860만 달러의 상승이 있었습니다.
회사는 2,500만 달러의 주식을 재매입했으며 2025년 2월 만기가 도래하는 4억 5,000만 달러의 선순위 노드를 상환할 계획입니다. 주주 자본은 11% 증가하여 27억 7,330만 달러에 이르렀고, 주당 장부 가치는 43.30달러로 상승했습니다.
Kemper (NYSE: KMPR) a annoncé un bénéfice net de 73,7 millions de dollars, soit 1,14 dollar par action diluée, pour le 3ème trimestre 2024, contre une perte nette de 146,3 millions de dollars, soit $(2,28) par action, pour le 3ème trimestre 2023. Le Revenu Net d'Exploitation Consolidé Ajusté était de 105,0 millions de dollars, soit 1,62 dollar par action diluée, contre une perte de 27,8 millions de dollars, soit $(0,44) par action, au 3ème trimestre 2023.
Kemper a atteint un ROE de 10,8% et un ROE Ajusté de 16,7%. Le secteur de l'Assurance Propriété & Accidents (P&C) a signalé une augmentation séquentielle de 4,5% des polices en vigueur (PIF) et un ratio combiné sous-jacent de 91,3%. Le segment de l'Assurance Vie a affiché 15,0 millions de dollars de revenu net d'exploitation ajusté. Les revenus totaux ont diminué de 1,7% pour atteindre 1.178,9 millions de dollars, avec une baisse de 76,4 millions de dollars dans l'activité d'Assurances Préférées, compensée par une hausse de 28,6 millions de dollars des primes P&C Spécialisées.
La société a racheté 25 millions de dollars d'actions et prévoit de rembourser 450 millions de dollars d'obligations senior arrivant à échéance en février 2025. Les capitaux propres des actionnaires ont augmenté de 11% pour atteindre 2.773,3 millions de dollars, et la valeur comptable par action a augmenté à 43,30 dollars.
Kemper (NYSE: KMPR) berichtete für das 3. Quartal 2024 über einen Nettogewinn von 73,7 Millionen Dollar bzw. 1,14 Dollar pro verwässerter Aktie, im Vergleich zu einem Nettoverlust von 146,3 Millionen Dollar bzw. $(2,28) pro Aktie im 3. Quartal 2023. Das bereinigte konsolidierte Netto-Betriebsergebnis betrug 105,0 Millionen Dollar bzw. 1,62 Dollar pro verwässerter Aktie, im Gegensatz zu einem Verlust von 27,8 Millionen Dollar bzw. $(0,44) pro Aktie im 3. Quartal 2023.
Kemper erzielte eine Eigenkapitalrendite (ROE) von 10,8% und eine bereinigte ROE von 16,7%. Der Bereich Spezial Immobilien- und Unfallversicherung (P&C) verzeichnete einen sequenziellen Anstieg von 4,5% bei den bestehenden Policen (PIF) und ein zugrunde liegendes kombinierter Satz von 91,3%. Der Lebensversicherungsbereich meldete 15,0 Millionen Dollar an bereinigtem Nettobetriebsergebnis. Die Gesamteinnahmen sanken um 1,7% auf 1.178,9 Millionen Dollar, wobei ein Rückgang von 76,4 Millionen Dollar im Geschäft mit bevorzugten Versicherungen verzeichnet wurde, welcher durch einen Anstieg von 28,6 Millionen Dollar bei den Prämien der spezialisierten P&C ausgeglichen wurde.
Das Unternehmen hat Aktien im Wert von 25 Millionen Dollar zurückgekauft und plant, 450 Millionen Dollar an vorrangigen Anleihen mit Fälligkeit im Februar 2025 zurückzuziehen. Das Eigenkapital der Aktionäre stieg um 11% auf 2.773,3 Millionen Dollar, und der Buchwert pro Aktie stieg auf 43,30 Dollar.
- Net income of $73.7 million in Q3 2024, compared to a net loss of $146.3 million in Q3 2023.
- Adjusted Consolidated Net Operating Income of $105.0 million, up from a loss of $27.8 million.
- Specialty P&C segment reported adjusted net operating income of $103.6 million, up from a loss of $33.2 million.
- Life Insurance segment adjusted net operating income of $15.0 million, up from $14.7 million.
- Repurchased $25 million of stock and plan to retire $450 million of senior notes due February 2025.
- Shareholders' equity increased by 11% to $2,773.3 million.
- Book value per share increased to $43.30, up 11% from $39.08 at the end of 2023.
- Total revenues decreased by 1.7% to $1,178.9 million.
- A $76.4 million decrease in the Preferred Insurance business.
Insights
The Q3 2024 results show a significant turnaround with net income of
The balance sheet remains robust with
The Specialty Auto business is showing particularly strong momentum with improved underwriting performance and growth, suggesting successful execution of the company's strategic initiatives.
The improvement in the Specialty P&C segment's underlying combined ratio from
The Life Insurance segment maintained stable performance with
The catastrophe losses impact of
Adjusted Consolidated Net Operating Income1 was
Key themes of the quarter include:
-
Delivered another quarter of strong financial results generating a
10.8% ROE and a16.7% Adjusted ROE1 -
Specialty P&C continues to demonstrate strong profitable growth; underlying combined ratio1 of
91.3% -
Specialty P&C achieved
4.5% sequential quarter PIF growth - Life business continued to generate strong return on capital and distributable cash flows
-
Parent liquidity remains strong at
$1.3 billion $25 million $450 million
“We achieved another strong quarter of operating and financial results,” said Joseph P. Lacher, Jr., President and CEO. “This was led by our Specialty Auto business, which generated solid underwriting performance and sequential PIF growth. We are well positioned to continue to deliver on our promises and create long-term shareholder value.”
*NOTE: In third quarter 2023, the Company finalized the establishment of Kemper Reciprocal, an
Unless specified otherwise, discussion of our third 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.
1Non-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 |
|
Nine Months Ended |
||||||||||||
(Dollars in Millions, Except Per Share Amounts) (Unaudited) |
|
Sep 30,
|
|
Sep 30,
|
|
Sep 30,
|
|
Sep 30,
|
||||||||
Net Income (Loss) |
|
$ |
73.7 |
|
|
$ |
(146.3 |
) |
|
$ |
220.4 |
|
|
$ |
(323.5 |
) |
Adjusted Consolidated Net Operating Income (Loss)1 |
|
$ |
105.0 |
|
|
$ |
(27.8 |
) |
|
$ |
266.4 |
|
|
$ |
(97.7 |
) |
|
|
|
|
|
|
|
|
|
||||||||
Impact of Catastrophe Losses and Related Loss Adjustment Expense (LAE) on Net Income (Loss) |
|
$ |
(12.3 |
) |
|
$ |
(16.4 |
) |
|
$ |
(47.3 |
) |
|
$ |
(68.1 |
) |
|
|
|
|
|
|
|
|
|
||||||||
Diluted Net Income (Loss) Per Share From: |
|
|
|
|
|
|
|
|
||||||||
Net Income (Loss) |
|
$ |
1.14 |
|
|
$ |
(2.28 |
) |
|
$ |
3.40 |
|
|
$ |
(5.05 |
) |
Adjusted Consolidated Net Operating Income (Loss)1 |
|
$ |
1.62 |
|
|
$ |
(0.44 |
) |
|
$ |
4.11 |
|
|
$ |
(1.53 |
) |
|
|
|
|
|
|
|
|
|
||||||||
Impact of Catastrophe Losses and Related LAE on Net Income (Loss) Per Share |
|
$ |
(0.19 |
) |
|
$ |
(0.32 |
) |
|
$ |
(0.74 |
) |
|
$ |
(1.35 |
) |
|
||||||||||||||||
Revenues
Total revenues for the third quarter of 2024 decreased
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 |
|
Nine Months Ended |
||||||||||||
(Dollars in Millions) (Unaudited) |
|
Sep 30,
|
|
Sep 30,
|
|
Sep 30,
|
|
Sep 30,
|
||||||||
Segment Adjusted Net Operating Income (Loss): |
|
|
|
|
|
|
|
|
||||||||
Specialty Property & Casualty Insurance |
|
$ |
103.6 |
|
|
$ |
(33.2 |
) |
|
$ |
275.1 |
|
|
$ |
(102.4 |
) |
Life Insurance |
|
|
15.0 |
|
|
|
14.7 |
|
|
|
26.7 |
|
|
|
36.8 |
|
Total Segment Adjusted Net Operating Income (Loss) |
|
|
118.6 |
|
|
|
(18.5 |
) |
|
|
301.8 |
|
|
|
(65.6 |
) |
Corporate and Other Adjusted Net Operating Loss |
|
|
(15.1 |
) |
|
|
(9.4 |
) |
|
|
(39.0 |
) |
|
|
(32.2 |
) |
Less: Net Loss attributable to Noncontrolling Interest |
|
|
(1.5 |
) |
|
|
(0.1 |
) |
|
|
(3.6 |
) |
|
|
(0.1 |
) |
Adjusted Consolidated Net Operating Income (Loss)1 |
|
|
105.0 |
|
|
|
(27.8 |
) |
|
|
266.4 |
|
|
|
(97.7 |
) |
Net (Loss) Income From: |
|
|
|
|
|
|
|
|
||||||||
Change in Fair Value of Equity and Convertible Securities |
|
|
(1.8 |
) |
|
|
2.3 |
|
|
|
(0.1 |
) |
|
|
5.5 |
|
Net Realized Investment Gains (Losses) |
|
|
0.9 |
|
|
|
(22.9 |
) |
|
|
7.3 |
|
|
|
(30.3 |
) |
Impairment Losses |
|
|
(1.7 |
) |
|
|
(0.8 |
) |
|
|
(3.0 |
) |
|
|
0.1 |
|
Acquisition and Disposition Related Transaction, Integration, Restructuring and Other Costs |
|
|
(9.1 |
) |
|
|
(34.3 |
) |
|
|
(24.3 |
) |
|
|
(80.6 |
) |
Debt Extinguishment, Pension Settlement and Other Charges |
|
|
(2.2 |
) |
|
|
(55.5 |
) |
|
|
(0.1 |
) |
|
|
(55.5 |
) |
Goodwill Impairment Charge |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(45.5 |
) |
Non-Core Operations |
|
|
(17.4 |
) |
|
|
(7.3 |
) |
|
|
(25.8 |
) |
|
|
(19.5 |
) |
Net Income (Loss) attributable to Kemper Corporation |
|
$ |
73.7 |
|
|
$ |
(146.3 |
) |
|
$ |
220.4 |
|
|
$ |
(323.5 |
) |
The Specialty Property and Casualty Insurance segment reported adjusted net operating income of
The Life Insurance segment reported adjusted net operating income of
Capital
Total Kemper Corporation Shareholders’ Equity at the end of the quarter was
On August 6, 2024, Kemper announced that its Board of Directors declared a quarterly dividend of
Kemper ended the quarter with a book value per share of
Unaudited Condensed Consolidated Statements of Income (Loss) for the three and nine months ended September 30, 2024 and 2023 are presented below.
|
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||
(Dollars in Millions, Except Per Share Amounts) |
|
Sep 30,
|
|
Sep 30,
|
|
Sep 30,
|
|
Sep 30,
|
||||||||
Revenues: |
|
|
|
|
|
|
|
|
||||||||
Earned Premiums (Changes in Deferred Profit Liability for the Three Months Ended: 2024 - |
|
$ |
1,068.5 |
|
|
$ |
1,117.8 |
|
|
$ |
3,134.1 |
|
|
$ |
3,465.6 |
|
Net Investment Income |
|
|
111.1 |
|
|
|
107.0 |
|
|
|
304.5 |
|
|
|
315.1 |
|
Change in Value of Alternative Energy Partnership Investments |
|
|
0.5 |
|
|
|
0.8 |
|
|
|
1.5 |
|
|
|
2.3 |
|
Other Income |
|
|
2.2 |
|
|
|
2.4 |
|
|
|
6.4 |
|
|
|
5.3 |
|
Change in Fair Value of Equity and Convertible Securities |
|
|
(2.3 |
) |
|
|
2.8 |
|
|
|
(0.1 |
) |
|
|
6.9 |
|
Net Realized Investment Gains (Losses) |
|
|
1.1 |
|
|
|
(30.3 |
) |
|
|
9.2 |
|
|
|
(38.3 |
) |
Impairment Losses |
|
|
(2.2 |
) |
|
|
(1.1 |
) |
|
|
(3.8 |
) |
|
|
0.1 |
|
Total Revenues |
|
|
1,178.9 |
|
|
|
1,199.4 |
|
|
|
3,451.8 |
|
|
|
3,757.0 |
|
Expenses: |
|
|
|
|
|
|
|
|
||||||||
Policyholders’ Benefits and Incurred Losses and Loss Adjustment Expenses (Changes in Liability for Future Policyholder Benefits for the Three Months Ended: 2024 - |
|
|
769.3 |
|
|
|
975.2 |
|
|
|
2,269.7 |
|
|
|
3,011.9 |
|
Insurance Expenses |
|
|
254.3 |
|
|
|
259.0 |
|
|
|
739.3 |
|
|
|
794.4 |
|
Interest and Other Expenses |
|
|
64.6 |
|
|
|
156.0 |
|
|
|
173.6 |
|
|
|
311.7 |
|
Goodwill Impairment |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
49.6 |
|
Total Expenses |
|
|
1,088.2 |
|
|
|
1,390.2 |
|
|
|
3,182.6 |
|
|
|
4,167.6 |
|
Income (Loss) before Income Taxes |
|
|
90.7 |
|
|
|
(190.8 |
) |
|
|
269.2 |
|
|
|
(410.6 |
) |
Income Tax (Expense) Benefit |
|
|
(18.5 |
) |
|
|
44.4 |
|
|
|
(52.4 |
) |
|
|
87.0 |
|
Net Income (Loss) |
|
|
72.2 |
|
|
|
(146.4 |
) |
|
216.8 |
|
|
(323.6 |
) |
||
Less: Net Loss attributable to Noncontrolling Interest |
|
|
(1.5 |
) |
|
|
(0.1 |
) |
|
|
(3.6 |
) |
|
|
(0.1 |
) |
Net Income (Loss) attributable to Kemper Corporation |
|
$ |
73.7 |
|
|
$ |
(146.3 |
) |
|
$ |
220.4 |
|
|
$ |
(323.5 |
) |
|
|
|
|
|
|
|
|
|
||||||||
Net Income (Loss) attributable to Kemper Corporation per Unrestricted Share: |
|
|
|
|
|
|
|
|
||||||||
Basic |
|
$ |
1.15 |
|
|
$ |
(2.28 |
) |
|
$ |
3.43 |
|
|
$ |
(5.05 |
) |
Diluted |
|
$ |
1.14 |
|
|
$ |
(2.28 |
) |
|
$ |
3.40 |
|
|
$ |
(5.05 |
) |
|
|
|
|
|
|
|
|
|
||||||||
Weighted-average Outstanding (Shares in Thousands): |
|
|
|
|
|
|
|
|
||||||||
Unrestricted Shares - Basic |
|
|
64,216.5 |
|
|
|
64,056.9 |
|
|
|
64,288.4 |
|
|
|
64,004.4 |
|
Unrestricted Shares and Equivalent Shares - Diluted |
|
|
64,898.0 |
|
|
|
64,056.9 |
|
|
|
64,863.8 |
|
|
|
64,004.4 |
|
|
|
|
|
|
|
|
|
|
||||||||
Dividends Paid to Shareholders per Share |
|
$ |
0.31 |
|
|
$ |
0.31 |
|
|
$ |
0.93 |
|
|
$ |
0.93 |
|
Unaudited business segment revenues for the three and nine months ended September 30, 2024 and 2023 are presented below.
|
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||
(Dollars in Millions) |
|
Sep 30,
|
|
Sep 30,
|
|
Sep 30,
|
|
Sep 30,
|
||||||||
REVENUES: |
|
|
|
|
|
|
|
|
||||||||
Specialty Property & Casualty Insurance: |
|
|
|
|
|
|
|
|
||||||||
Earned Premiums: |
|
|
|
|
|
|
|
|
||||||||
Personal Automobile |
|
$ |
731.3 |
|
|
$ |
724.0 |
|
|
$ |
2,098.1 |
|
|
$ |
2,278.5 |
|
Commercial Automobile |
|
|
187.7 |
|
|
|
166.4 |
|
|
|
523.5 |
|
|
|
488.4 |
|
Total Earned Premiums |
|
|
919.0 |
|
|
|
890.4 |
|
|
|
2,621.6 |
|
|
|
2,766.9 |
|
Net Investment Income |
|
|
52.0 |
|
|
|
42.7 |
|
|
|
139.7 |
|
|
|
125.7 |
|
Change in Value of Alternative Energy Partnership Investments |
|
|
0.2 |
|
|
|
0.5 |
|
|
|
0.8 |
|
|
|
1.3 |
|
Other Income |
|
|
1.4 |
|
|
|
1.6 |
|
|
|
3.8 |
|
|
|
3.2 |
|
Total Specialty Property & Casualty Insurance Revenues |
|
|
972.6 |
|
|
|
935.2 |
|
|
|
2,765.9 |
|
|
|
2,897.1 |
|
Life Insurance: |
|
|
|
|
|
|
|
|
||||||||
Earned Premiums: |
|
|
|
|
|
|
|
|
||||||||
Life |
|
|
84.2 |
|
|
|
84.9 |
|
|
|
249.2 |
|
|
|
251.9 |
|
Accident & Health |
|
|
5.6 |
|
|
|
5.8 |
|
|
|
16.8 |
|
|
|
17.5 |
|
Property |
|
|
10.8 |
|
|
|
11.4 |
|
|
|
32.7 |
|
|
|
34.2 |
|
Total Earned Premiums |
|
|
100.6 |
|
|
|
102.1 |
|
|
|
298.7 |
|
|
|
303.6 |
|
Net Investment Income |
|
|
50.3 |
|
|
|
49.4 |
|
|
|
125.1 |
|
|
|
146.3 |
|
Change in Value of Alternative Energy Partnership Investments |
|
|
0.2 |
|
|
|
0.2 |
|
|
|
0.4 |
|
|
|
0.6 |
|
Other Income (Loss) |
|
|
— |
|
|
|
(0.1 |
) |
|
|
0.3 |
|
|
|
(0.4 |
) |
Total Life Insurance Revenues |
|
|
151.1 |
|
|
|
151.6 |
|
|
|
424.5 |
|
|
|
450.1 |
|
Total Segment Revenues |
|
|
1,123.7 |
|
|
|
1,086.8 |
|
|
|
3,190.4 |
|
|
|
3,347.2 |
|
Change in Fair Value of Equity and Convertible Securities |
|
|
(2.3 |
) |
|
|
2.8 |
|
|
|
(0.1 |
) |
|
|
6.9 |
|
Net Realized Investment Gains (Losses) |
|
|
1.1 |
|
|
|
(30.3 |
) |
|
|
9.2 |
|
|
|
(38.3 |
) |
Net Impairment Losses Recognized in Earnings |
|
|
(2.2 |
) |
|
|
(1.1 |
) |
|
|
(3.8 |
) |
|
|
0.1 |
|
Non-Core Operations |
|
|
54.8 |
|
|
|
138.0 |
|
|
|
244.8 |
|
|
|
431.7 |
|
Other Income |
|
|
3.8 |
|
|
|
3.2 |
|
|
|
11.3 |
|
|
|
9.4 |
|
Total Revenues |
|
$ |
1,178.9 |
|
|
$ |
1,199.4 |
|
|
$ |
3,451.8 |
|
|
$ |
3,757.0 |
|
|
||||||||||||||||
KEMPER CORPORATION AND SUBSIDIARIES |
|||||
CONDENSED CONSOLIDATED BALANCE SHEETS |
|||||
(Dollars in Millions) |
|||||
(Unaudited) |
|||||
|
Sep 30,
|
|
Dec 31,
|
||
Assets: |
|
|
|
||
Investments: |
|
|
|
||
Fixed Maturities at Fair Value |
$ |
6,872.0 |
|
$ |
6,881.9 |
Equity Securities at Fair Value |
|
228.3 |
|
|
225.8 |
Equity Method Limited Liability Investments |
|
202.6 |
|
|
221.7 |
Alternative Energy Partnership Investments |
|
17.4 |
|
|
17.3 |
Short-term Investments at Cost which Approximates Fair Value |
|
696.9 |
|
|
520.9 |
Company-Owned Life Insurance |
|
533.0 |
|
|
513.5 |
Loans to Policyholders |
|
280.3 |
|
|
281.2 |
Other Investments |
|
206.5 |
|
|
241.9 |
Total Investments |
|
9,037.0 |
|
|
8,904.2 |
Cash |
|
56.9 |
|
|
64.1 |
Receivables from Policyholders |
|
982.8 |
|
|
959.5 |
Other Receivables |
|
202.1 |
|
|
200.5 |
Deferred Policy Acquisition Costs |
|
621.3 |
|
|
591.6 |
Goodwill |
|
1,250.7 |
|
|
1,250.7 |
Current Income Tax Assets |
|
68.8 |
|
|
64.5 |
Deferred Income Tax Assets |
|
150.5 |
|
|
210.4 |
Other Assets |
|
468.9 |
|
|
492.6 |
Assets of Consolidated Variable Interest Entity |
|
|
|
||
Fixed Maturities at Fair Value |
|
1.7 |
|
|
1.7 |
Short-term Investments at Cost which Approximates Fair Value |
|
24.0 |
|
|
2.0 |
Receivables from Policyholders |
|
6.6 |
|
|
0.7 |
Deferred Policy Acquisition Costs |
|
0.7 |
|
|
0.1 |
Deferred Income Tax Assets |
|
1.0 |
|
|
— |
Other Assets |
|
— |
|
|
0.1 |
Total Assets |
$ |
12,873.0 |
|
$ |
12,742.7 |
|
|
|
|
||
KEMPER CORPORATION AND SUBSIDIARIES |
|||||||
CONDENSED CONSOLIDATED BALANCE SHEETS (Continued) |
|||||||
(Dollars in Millions) |
|||||||
(Unaudited) |
|||||||
|
Sep 30,
|
|
Dec 31,
|
||||
|
|
|
|
||||
Liabilities and Shareholders’ Equity: |
|
|
|
||||
Insurance Reserves: |
|
|
|
||||
Life & Health |
$ |
3,425.8 |
|
|
$ |
3,422.4 |
|
Property & Casualty |
|
2,586.9 |
|
|
|
2,680.5 |
|
Total Insurance Reserves |
|
6,012.7 |
|
|
|
6,102.9 |
|
Unearned Premiums |
|
1,290.3 |
|
|
|
1,300.8 |
|
Policyholder Obligations |
|
618.3 |
|
|
|
655.7 |
|
Deferred Income Tax Liabilities |
|
67.1 |
|
|
|
50.6 |
|
Accrued Expenses and Other Liabilities |
|
709.5 |
|
|
|
737.7 |
|
Long-term Debt, Current, at Amortized Cost |
|
449.9 |
|
|
|
— |
|
Long-term Debt, Non-current, at Amortized Cost |
|
941.0 |
|
|
|
1,389.2 |
|
Liabilities of Consolidated Variable Interest Entity |
|
|
|
||||
Insurance Reserves |
|
5.3 |
|
|
|
— |
|
Unearned Premiums |
|
8.1 |
|
|
|
0.5 |
|
Accrued Expenses and Other Liabilities |
|
0.4 |
|
|
|
0.3 |
|
Total Liabilities |
|
10,102.6 |
|
|
|
10,237.7 |
|
Kemper Corporation Shareholders’ Equity: |
|
|
|
||||
Common Stock |
|
6.4 |
|
|
|
6.4 |
|
Paid-in Capital |
|
1,858.0 |
|
|
|
1,845.3 |
|
Retained Earnings |
|
1,161.4 |
|
|
|
1,014.3 |
|
Accumulated Other Comprehensive Loss |
|
(252.5 |
) |
|
|
(360.8 |
) |
Total Kemper Corporation Shareholders’ Equity |
|
2,773.3 |
|
|
|
2,505.2 |
|
Noncontrolling Interest |
|
(2.9 |
) |
|
|
(0.2 |
) |
Total Shareholders’ Equity |
|
2,770.4 |
|
|
|
2,505.0 |
|
Total Liabilities and Shareholders’ Equity |
$ |
12,873.0 |
|
|
$ |
12,742.7 |
|
Unaudited selected financial information for the Specialty Property & Casualty Insurance segment follows.
|
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||
(Dollars in Millions) |
|
Sep 30,
|
|
Sep 30,
|
|
Sep 30,
|
|
Sep 30,
|
||||||||
|
|
|
|
|
|
|
|
|
||||||||
Results of Operations |
||||||||||||||||
Net Premiums Written |
|
$ |
938.0 |
|
|
$ |
733.0 |
|
|
$ |
2,736.5 |
|
|
$ |
2,585.7 |
|
|
|
|
|
|
|
|
|
|
||||||||
Earned Premiums |
|
$ |
919.0 |
|
|
$ |
890.4 |
|
|
$ |
2,621.6 |
|
|
$ |
2,766.9 |
|
Net Investment Income |
|
|
52.0 |
|
|
|
42.7 |
|
|
|
139.7 |
|
|
|
125.7 |
|
Change in Value of Alternative Energy Partnership Investments |
|
|
0.2 |
|
|
|
0.5 |
|
|
|
0.8 |
|
|
|
1.3 |
|
Other Income |
|
|
1.4 |
|
|
|
1.6 |
|
|
|
3.8 |
|
|
|
3.2 |
|
Total Revenues |
|
|
972.6 |
|
|
|
935.2 |
|
|
|
2,765.9 |
|
|
|
2,897.1 |
|
Incurred Losses and LAE related to: |
|
|
|
|
|
|
|
|
||||||||
Current Year: |
|
|
|
|
|
|
|
|
||||||||
Non-catastrophe Losses and LAE |
|
|
644.2 |
|
|
|
712.1 |
|
|
|
1,846.0 |
|
|
|
2,301.4 |
|
Catastrophe Losses and LAE |
|
|
3.6 |
|
|
|
6.2 |
|
|
|
18.0 |
|
|
|
32.0 |
|
Prior Years: |
|
|
|
|
|
|
|
|
||||||||
Non-catastrophe Losses and LAE |
|
|
(0.1 |
) |
|
|
78.8 |
|
|
|
4.4 |
|
|
|
135.4 |
|
Catastrophe Losses and LAE |
|
|
0.2 |
|
|
|
(1.0 |
) |
|
|
0.8 |
|
|
|
(2.4 |
) |
Total Incurred Losses and LAE |
|
|
647.9 |
|
|
|
796.1 |
|
|
|
1,869.2 |
|
|
|
2,466.4 |
|
Insurance Expenses |
|
|
194.9 |
|
|
|
182.3 |
|
|
|
552.5 |
|
|
|
563.6 |
|
Segment Adjusted Operating Income (Loss) |
|
|
129.8 |
|
|
|
(43.2 |
) |
|
|
344.2 |
|
|
|
(132.9 |
) |
Income Tax (Expense) Benefit |
|
|
(26.2 |
) |
|
|
10.0 |
|
|
|
(69.1 |
) |
|
|
30.5 |
|
Total Segment Adjusted Net Operating Income (Loss) |
|
$ |
103.6 |
|
|
$ |
(33.2 |
) |
|
$ |
275.1 |
|
|
$ |
(102.4 |
) |
|
|
|
|
|
|
|
|
|
||||||||
Ratios Based On Earned Premiums |
||||||||||||||||
Current Year Non-catastrophe Losses and LAE Ratio |
|
|
70.1 |
% |
|
|
80.0 |
% |
|
|
70.4 |
% |
|
|
83.1 |
% |
Current Year Catastrophe Losses and LAE Ratio |
|
|
0.4 |
|
|
|
0.7 |
|
|
|
0.7 |
|
|
|
1.2 |
|
Prior Years Non-catastrophe Losses and LAE Ratio |
|
|
— |
|
|
|
8.8 |
|
|
|
0.2 |
|
|
|
4.9 |
|
Prior Years Catastrophe Losses and LAE Ratio |
|
|
— |
|
|
|
(0.1 |
) |
|
|
— |
|
|
|
(0.1 |
) |
Total Incurred Loss and LAE Ratio |
|
|
70.5 |
|
|
|
89.4 |
|
|
|
71.3 |
|
|
|
89.1 |
|
Insurance Expense Ratio |
|
|
21.2 |
|
|
|
20.5 |
|
|
|
21.1 |
|
|
|
20.4 |
|
Combined Ratio |
|
|
91.7 |
% |
|
|
109.9 |
% |
|
|
92.4 |
% |
|
|
109.5 |
% |
|
|
|
|
|
|
|
|
|
||||||||
Underlying Combined Ratio1 |
||||||||||||||||
Current Year Non-catastrophe Losses and LAE Ratio |
|
|
70.1 |
% |
|
|
80.0 |
% |
|
|
70.4 |
% |
|
|
83.1 |
% |
Insurance Expense Ratio |
|
|
21.2 |
|
|
|
20.5 |
|
|
|
21.1 |
|
|
|
20.4 |
|
Underlying Combined Ratio1 |
|
|
91.3 |
% |
|
|
100.5 |
% |
|
|
91.5 |
% |
|
|
103.5 |
% |
|
|
|
|
|
|
|
|
|
||||||||
Non-GAAP Measure Reconciliation |
||||||||||||||||
Combined Ratio |
|
|
91.7 |
% |
|
|
109.9 |
% |
|
|
92.4 |
% |
|
|
109.5 |
% |
Less: |
|
|
|
|
|
|
|
|
||||||||
Current Year Catastrophe Losses and LAE Ratio |
|
|
0.4 |
|
|
|
0.7 |
|
|
|
0.7 |
|
|
|
1.2 |
|
Prior Years Non-catastrophe Losses and LAE Ratio |
|
|
— |
|
|
|
8.8 |
|
|
|
0.2 |
|
|
|
4.9 |
|
Prior Years Catastrophe Losses and LAE Ratio |
|
|
— |
|
|
|
(0.1 |
) |
|
|
— |
|
|
|
(0.1 |
) |
Underlying Combined Ratio1 |
|
|
91.3 |
% |
|
|
100.5 |
% |
|
|
91.5 |
% |
|
|
103.5 |
% |
|
|
|
|
|
|
|
|
|
||||||||
Unaudited selected financial information for the Life Insurance segment follows.
|
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||
(Dollars in Millions) |
|
Sep 30,
|
|
Sep 30,
|
|
Sep 30,
|
|
Sep 30,
|
||||||||
|
|
|
|
|
|
|
|
|
||||||||
Results of Operations |
||||||||||||||||
Earned Premiums |
|
$ |
100.6 |
|
|
$ |
102.1 |
|
|
$ |
298.7 |
|
|
$ |
303.6 |
|
Net Investment Income |
|
|
50.3 |
|
|
|
49.4 |
|
|
|
125.1 |
|
|
|
146.3 |
|
Change in Value of Alternative Energy Partnership Investments |
|
|
0.2 |
|
|
|
0.2 |
|
|
|
0.4 |
|
|
|
0.6 |
|
Other Income (Loss) |
|
|
— |
|
|
|
(0.1 |
) |
|
|
0.3 |
|
|
|
(0.4 |
) |
Total Revenues |
|
|
151.1 |
|
|
|
151.6 |
|
|
|
424.5 |
|
|
|
450.1 |
|
Policyholders’ Benefits and Incurred Losses and LAE |
|
|
64.1 |
|
|
|
64.7 |
|
|
|
191.0 |
|
|
|
202.9 |
|
Insurance Expenses |
|
|
69.0 |
|
|
|
69.4 |
|
|
|
202.9 |
|
|
|
204.8 |
|
Segment Adjusted Operating Income |
|
|
18.0 |
|
|
|
17.5 |
|
|
|
30.6 |
|
|
|
42.4 |
|
Income Tax Expense |
|
|
(3.0 |
) |
|
|
(2.8 |
) |
|
|
(3.9 |
) |
|
|
(5.6 |
) |
Total Segment Adjusted Net Operating Income |
|
$ |
15.0 |
|
|
$ |
14.7 |
|
|
$ |
26.7 |
|
|
$ |
36.8 |
|
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 nine months ended September 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 nine months ended September 30, 2024 and 2023 is presented below.
|
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||
(Dollars in Millions) (Unaudited) |
|
Sep 30,
|
|
Sep 30,
|
|
Sep 30,
|
|
Sep 30,
|
||||||||
Net Income (Loss) attributable to Kemper Corporation |
|
$ |
73.7 |
|
|
$ |
(146.3 |
) |
|
$ |
220.4 |
|
|
$ |
(323.5 |
) |
Less Net (Loss) Income From: |
|
|
|
|
|
|
|
|
||||||||
Change in Fair Value of Equity and Convertible Securities |
|
|
(1.8 |
) |
|
|
2.3 |
|
|
|
(0.1 |
) |
|
|
5.5 |
|
Net Realized Investment Gains (Losses) |
|
|
0.9 |
|
|
|
(22.9 |
) |
|
|
7.3 |
|
|
|
(30.3 |
) |
Impairment Losses |
|
|
(1.7 |
) |
|
|
(0.8 |
) |
|
|
(3.0 |
) |
|
|
0.1 |
|
Acquisition and Disposition Related Transaction, Integration, Restructuring and Other Costs |
|
|
(9.1 |
) |
|
|
(34.3 |
) |
|
|
(24.3 |
) |
|
|
(80.6 |
) |
Debt Extinguishment, Pension Settlement and Other Charges |
|
|
(2.2 |
) |
|
|
(55.5 |
) |
|
|
(0.1 |
) |
|
|
(55.5 |
) |
Goodwill Impairment Charge |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(45.5 |
) |
Non-Core Operations |
|
|
(17.4 |
) |
|
|
(7.3 |
) |
|
|
(25.8 |
) |
|
|
(19.5 |
) |
Adjusted Consolidated Net Operating Income (Loss)1 |
|
$ |
105.0 |
|
|
$ |
(27.8 |
) |
|
$ |
266.4 |
|
|
$ |
(97.7 |
) |
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 nine months ended September 30, 2024 and 2023 is presented below.
|
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||
(Unaudited) |
|
Sep 30,
|
|
Sep 30,
|
|
Sep 30,
|
|
Sep 30,
|
||||||||
Diluted Net Income (Loss) attributable to Kemper Corporation per Unrestricted Share |
|
$ |
1.14 |
|
|
$ |
(2.28 |
) |
|
$ |
3.40 |
|
|
$ |
(5.05 |
) |
Less Net (Loss) Income per Unrestricted Share From: |
|
|
|
|
|
|
|
|
||||||||
Change in Fair Value of Equity and Convertible Securities |
|
|
(0.02 |
) |
|
|
0.04 |
|
|
|
— |
|
|
|
0.09 |
|
Net Realized Investment Gains (Losses) |
|
|
0.01 |
|
|
|
(0.35 |
) |
|
|
0.12 |
|
|
|
(0.47 |
) |
Impairment Losses |
|
|
(0.03 |
) |
|
|
(0.01 |
) |
|
|
(0.05 |
) |
|
|
— |
|
Acquisition and Disposition Related Transaction, Integration, Restructuring and Other Costs |
|
|
(0.14 |
) |
|
|
(0.54 |
) |
|
|
(0.38 |
) |
|
|
(1.26 |
) |
Debt Extinguishment, Pension Settlement and Other Charges |
|
|
(0.03 |
) |
|
|
(0.87 |
) |
|
|
— |
|
|
|
(0.87 |
) |
Goodwill Impairment Charge |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(0.71 |
) |
Non-Core Operations |
|
|
(0.27 |
) |
|
|
(0.11 |
) |
|
|
(0.40 |
) |
|
|
(0.30 |
) |
Diluted Adjusted Net Operating Income (Loss) per Unrestricted Share1 |
|
$ |
1.62 |
|
|
$ |
(0.44 |
) |
|
$ |
4.11 |
|
|
$ |
(1.53 |
) |
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 |
|
Nine Months Ended |
||||||||||||
(Dollars in Millions) (Unaudited) |
|
Sep 30,
|
|
Sep 30,
|
|
Sep 30,
|
|
Sep 30,
|
||||||||
Numerator: |
|
|
|
|
|
|
|
|
||||||||
Annualized Net Income (Loss) attributable to Kemper Corporation |
|
$ |
294.8 |
|
|
$ |
(585.2 |
) |
|
$ |
293.9 |
|
|
$ |
(431.3 |
) |
|
|
|
|
|
|
|
|
|
||||||||
Denominator: |
|
|
|
|
|
|
|
|
||||||||
Average Shareholders' Equity2 |
|
$ |
2,722.3 |
|
|
$ |
2,436.8 |
|
|
$ |
2,634.9 |
|
|
$ |
2,547.8 |
|
|
|
|
|
|
|
|
|
|
||||||||
Less: Average Net Unrealized Gains and Losses on Fixed Maturities |
|
|
570.8 |
|
|
|
770.3 |
|
|
|
573.5 |
|
|
|
707.9 |
|
Less: Average Change in Discount Rate on Future Life Policyholder Benefits |
|
|
(275.4 |
) |
|
|
(303.6 |
) |
|
|
(245.9 |
) |
|
|
(250.7 |
) |
Less: Average Goodwill |
|
|
(1,250.7 |
) |
|
|
(1,250.7 |
) |
|
|
(1,250.7 |
) |
|
|
(1,275.5 |
) |
Average Adjusted Shareholders' Equity2 |
|
$ |
1,767.0 |
|
|
$ |
1,652.8 |
|
|
$ |
1,711.8 |
|
|
$ |
1,729.5 |
|
|
|
|
|
|
|
|
|
|
||||||||
Return on Shareholders' Equity: |
|
|
|
|
|
|
|
|
||||||||
Return on Shareholders' Equity |
|
|
10.8 |
% |
|
|
(24.0 |
)% |
|
|
11.2 |
% |
|
|
(16.9 |
)% |
Return on Adjusted Shareholders' Equity1 |
|
|
16.7 |
% |
|
|
(35.4 |
)% |
|
|
17.2 |
% |
|
|
(24.9 |
)% |
|
|
|
|
|
|
|
|
|
||||||||
2 Average shareholders' equity and average adjusted shareholders’ equity for the three and nine 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) |
|
Sep 30,
|
|
Dec 31,
|
||||
Numerator: |
|
|
|
|
||||
Kemper Corporation Shareholders’ Equity |
|
$ |
2,773.3 |
|
|
$ |
2,505.2 |
|
|
|
|
|
|
||||
Less: Net Unrealized Gains and Losses on Fixed Maturities |
|
|
455.8 |
|
|
|
533.8 |
|
Less: Change in Discount Rate on Future Life Policyholder Benefits |
|
|
(192.9 |
) |
|
|
(160.6 |
) |
Less: Goodwill |
|
|
(1,250.7 |
) |
|
|
(1,250.7 |
) |
Adjusted Shareholders’ Equity |
|
$ |
1,785.5 |
|
|
$ |
1,627.7 |
|
|
|
|
|
|
||||
Denominator: |
|
|
|
|
||||
Common Shares Issued and Outstanding |
|
|
64.044 |
|
|
|
64.112 |
|
|
|
|
|
|
||||
Book Value Per Share: |
|
|
|
|
||||
Book Value Per Share |
|
$ |
43.30 |
|
|
$ |
39.08 |
|
|
|
|
|
|
||||
Less: Net Unrealized Gains and Losses on Fixed Maturities |
|
|
7.12 |
|
|
|
8.33 |
|
Less: Change in Discount Rate on Future Life Policyholder Benefits |
|
|
(3.01 |
) |
|
|
(2.51 |
) |
Less: Goodwill |
|
|
(19.53 |
) |
|
|
(19.51 |
) |
Adjusted Book Value Per Share1 |
|
$ |
27.88 |
|
|
$ |
25.39 |
|
Conference Call
Kemper will host its conference call to discuss third quarter 2024 results on Wednesday, October 30, at 5:00 p.m. Eastern (4:00 p.m. Central). The conference call will be accessible via the internet and by telephone at 800.549.8228, Conference ID 98917. 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 third 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
Learn more about Kemper 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/20241029347291/en/
Investors: Michael Marinaccio 312.661.4930 or investors@kemper.com
Media: Barbara Ciesemier 312.661.4521 or bciesemier@kemper.com
Source: Kemper Corporation
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