Kemper’s net income reaches $75.4m in Q2, Specialty P&C underlying CR hits 89.6%

In their results for the second quarter of 2024, Kemper Corporation has posted a net income of $75.4 million, a major improvement compared to a net loss of $97.1 million from the second quarter of 2023.

Kemper’s total revenues for Q2’24 decreased $132.9 million, or 10.5%, to $1,129.9 million, compared to the previous year, which the firm noted was mainly driven by a $69.7 million decrease from the Specialty Property & Casualty (P&C) 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.

Additionally, the firm’s Specialty P&C Insurance segment reported an adjusted net operating income of $102.3 million for the quarter, a substantial improvement from an adjusted net operating loss of $10.8 million that the segment reported in the prior year quarter.

As well as this, the segment’s Underlying Combined Ratio sat at 89.6%, a 12.4 point improvement compared to 102.0%  in the second quarter of 2023. Kemper stated that the improvement was primarily driven by higher average earned premiums per exposure resulting from rate increases and lower underlying claim frequency.

Moving towards the company’s Life Insurance segment, Kemper reported an adjusted net operating loss of $0.2 million for Q2’24, compared to an adjusted net operating income of $8.9 million in Q2’23.

Furthermore, total Kemper Corporation Shareholders’ Equity at the end of Q2’24 was $2,671.2 million, representing an increase of $166.0 million, or 7%, since year-end 2023 primarily driven by net income for the year.

The organisation and its direct non-insurance subsidiaries ended the second quarter of 2024 with cash and investments of $376.5 million, and $458.0 million of available borrowing capacity under the revolving credit agreement.

Joseph P. Lacher, Jr., President and CEO, commented on the company’s Q2 2024 results: “I’m proud of the strong results and progress we achieved this quarter. 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.”

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