Kemper Announces First Quarter Preliminary Results and Schedule for Earnings Release
PRELIMINARY RESULTS
Preliminary results for the first quarter of 2024 include estimated net income and adjusted consolidated net operating income1 of between
Kemper Auto (Specialty P&C)
Preliminary combined ratios are:
|
Combined Ratio |
Underlying Combined Ratio1 |
Kemper Auto |
94.8% |
93.6% |
Kemper Auto: Private Passenger Auto (PPA) |
95.1% |
93.5% |
Kemper Auto: Commercial Vehicle |
93.6% |
93.8% |
New Business Production and Policies In Force (“PIF") Change
-
Re-acceleration began in early
February 2024 ; strong demand across all markets. -
Compared to the fourth quarter of 2023:
- New written premium increased over 200%.
- New policies issued increased over 150%.
- Rate of sequential quarterly PIF decline slowed to 5.5% compared to 8.9% in the fourth quarter of 2023.
Kemper Life
-
After-tax income was approximately
$12 million .
Capital and Liquidity
-
Parent company liquidity was approximately
$1.1 billion . - Insurance subsidiaries are well-capitalized.
CONFERENCE CALL DETAILS
Kemper will host its conference call to discuss first quarter 2024 results on
1 Non-GAAP financial measure. All non-GAAP financial measures are denoted with footnote 1 throughout this release. See below for further explanation on the use of non-GAAP financial measures.
USE OF NON-GAAP FINANCIAL MEASURES
Adjusted Consolidated Net Operating Income
1 is computed by excluding from Net Income Attributable to
(i) Income (Loss) from Change in Fair Value of
(ii) Net Realized Investment Gains (Losses);
(iii) Impairment (Losses) Gains;
(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 Attributable to
Kemper believes that Adjusted Consolidated Net Operating Income 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. (Loss) Income from Change in Fair Value of
Underlying Combined Ratio1 is computed by adding the Current Year Non-catastrophe Losses and LAE (Loss Adjustment Expense) 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
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;
- 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.
About Kemper
The Kemper family of companies is one of the nation's leading specialized insurers. With approximately
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