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Sep 30, 2022
Kemper Q3 2022 Earnings Report
Kemper reported a net loss due to catastrophe losses, but showed progress toward restoring underwriting profitability through rate increases and strategic initiatives.
Key Takeaways
Kemper Corporation reported a net loss of $76.2 million for the third quarter of 2022, compared to a net loss of $75.3 million for the third quarter of 2021. However, the company is making progress toward restoring underwriting profitability through rate increases and strategic initiatives, including a restructuring program and operating model improvements.
Sequential improvement in Specialty Auto inclusive of elevated severity trends
Profitability improvement initiatives earning in at an accelerated rate
Rate-taking activities continue ahead of schedule
Life profitability improved as mortality continues to moderate and business benefits from increased yields
Kemper
Kemper
Kemper Revenue by Segment
Revenue by Segment
Specialty P&C Insurance Revenue
CapyFin.comLife Insurance Revenue
CapyFin.com Forward Guidance
Kemper announced a series of strategic initiatives to further strengthen the Kemper franchise. These include a restructuring program and operating model improvements that will decrease capital requirements, lower costs, enhance customer product offerings, and reduce our risk profile.
Positive Outlook
- Decrease capital requirements
- Lower costs
- Enhance customer product offerings
- Reduce our risk profile
- Better position us to serve the needs of our customers and employees
Challenges Ahead
- Changes in the frequency and severity of insurance claims
- Claim development and the process of estimating claim reserves
- The impacts of inflation
- Supply chain disruption
- Product demand and pricing
Revenue & Expenses
Visualization of income flow from segment revenue to net income