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Mar 31, 2021
Kemper Q1 2021 Earnings Report
Kemper reported strong operating results driven by Specialty P&C insurance segment, with a net income of $123.2 million.
Key Takeaways
Kemper Corporation reported a net income of $123.2 million for Q1 2021, compared to $64.0 million for Q1 2020. Adjusted Consolidated Net Operating Income was $87.2 million, compared to $162.9 million in the prior year quarter. The Specialty P&C segment showed strong performance with increased earned premiums and a healthy underlying combined ratio.
Specialty P&C earned premiums increased 7% and policies-in-force grew approximately 2%.
Underlying Specialty combined ratio was 94%, consistent with the prior year.
Kemper repurchased shares worth $47 million during the quarter.
Approximately $500 million of capital was deployed through stock repurchases, debt repayment, dividend increase, and the acquisition of American Access.
Kemper
Kemper
Kemper Revenue by Segment
Revenue by Segment
Specialty P&C Insurance Revenue
CapyFin.comLife Insurance Revenue
CapyFin.com Forward Guidance
Kemper is well-positioned to support customers and grow long-term shareholder value, with a focus on thoughtful capital deployment and meeting customer needs.
Positive Outlook
- Kemper continued to deliver solid results and intrinsic value to shareholders.
- Double-digit ROE and growth in tangible book value per share were generated.
- Specialty Auto business continues to produce strong earnings.
- Kemper's business model and strategy execution position them to navigate through the pandemic recovery.
- The company feels confident that they will continue to meet the ongoing needs of their customers.
Challenges Ahead
- Short-term headwinds were experienced.
- Slower state re-openings impacted the Specialty Auto business.
- COVID-related mortality increased in the Life & Health Insurance segment.
- Total Shareholders’ Equity decreased due to a decrease in the valuation of the fixed income bond portfolio.
- Other income decreased significantly due to a one-time final judgment received in the prior year.
Revenue & Expenses
Visualization of income flow from segment revenue to net income