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Mar 31, 2023
Kemper Q1 2023 Earnings Report
Kemper reported a net loss impacted by catastrophe losses, prior year adverse development, and higher-than-anticipated frequency. Rate actions continue to earn in at an accelerated pace.
Key Takeaways
Kemper Corporation reported a net loss of $80.1 million for the first quarter of 2023, compared to a net loss of $86.3 million for the first quarter of 2022. Adjusted Consolidated Net Operating Loss was $65.2 million, compared to $51.6 million in the prior year. The results were impacted by elevated catastrophe losses, prior year adverse development, and higher-than-anticipated frequency.
Profitability impacted by catastrophe losses, prior year adverse development, and higher-than-anticipated frequency.
Excess mortality at or near pre-pandemic levels, albeit sequentially; claims increased in first quarter.
Rate actions continue to earn in at an accelerated pace.
Declared dividend of $0.31 per share
Revenue by Segment
Forward Guidance
Kemper expects a return to underwriting profitability by the end of 2023 and to achieve their financial targets in 2024.
Positive Outlook
- Increased rates earning in
- Incremental rate filings
- Tightened underwriting
- Targeted expense reductions
- Relentlessly focused on taking actions intended to make the necessary improvements and deliver long-term value to our shareholders.
Challenges Ahead
- Profitability impacted by catastrophe losses
- Prior year adverse development
- Higher-than-anticipated frequency
- Weather was a significant contributor to the frequency increase and episodic in nature.
- First quarter results were below expectations.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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