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Jun 30, 2023
Kemper Q2 2023 Earnings Report
Kemper reported a net loss for the second quarter of 2023, but showed signs of improvement in underlying performance due to profit actions and strategic initiatives.
Key Takeaways
Kemper Corporation reported a net loss of $97.1 million for Q2 2023, which included a $45.5 million after-tax charge from goodwill impairment. However, the company's underlying performance is improving, with the Specialty P&C segment showing a six-point improvement in the Underlying Combined Ratio.
Specialty P&C reflects a six point Underlying Combined Ratio improvement
Excess mortality at or near pre-pandemic levels
Specialty Auto received second rate approval in California
Benefits of profit actions are starting to generate improvements in underlying performance
Kemper
Kemper
Kemper Revenue by Segment
Revenue by Segment
Specialty P&C Insurance Revenue
CapyFin.comLife Insurance Revenue
CapyFin.com Forward Guidance
Kemper anticipates continued improvement in underwriting performance in the second half of 2023 and plans to generate a return on equity equal to or greater than 10% for 2024.
Positive Outlook
- Continued improvement in underwriting performance in the second half of 2023
- Plan to generate a return on equity equal to or greater than 10% for 2024
- Making significant progress on key strategic initiatives including reciprocal program
- Making significant progress on key strategic initiatives including Bermuda optimization
- Making significant progress on key strategic initiatives including expense initiatives and completion of Kemper Personal Insurance review
Challenges Ahead
- Changes in the frequency and severity of insurance claims
- Claim development and the process of estimating claim reserves
- Impacts of inflation
- Changes in the interest rate environment
- Supply chain disruption
Revenue & Expenses
Visualization of income flow from segment revenue to net income