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Dec 31, 2021
Kemper Q4 2021 Earnings Report
Kemper reported a net loss for Q4 2021, impacted by pandemic-driven environmental challenges and higher claim severity trends.
Key Takeaways
Kemper Corporation reported a net loss of $105.8 million for the fourth quarter of 2021, compared to a net income of $97.5 million for the same period in 2020. The results were impacted by pandemic-driven environmental challenges and higher claim severity trends, particularly in the Specialty P&C segment. Despite the challenges, the company made progress on corrective measures and remains focused on delivering long-term value for shareholders.
Specialty P&C earned premiums increased 17.0% due to a 17.9% increase in policies-in-force and the initial impact of rate changes; AAC contributed 10.3% and 12.6% for earned premiums and policies-in-force, respectively.
Specialty P&C underlying combined ratio was 119.4%, due primarily to higher claim severity trends.
Rate and non-rate actions continued at an accelerated pace, but earned benefit was minimal in the quarter.
Investment portfolio continues to provide stable net investment income supporting long-term business objectives.
Kemper
Kemper
Kemper Revenue by Segment
Revenue by Segment
Specialty P&C Insurance Revenue
CapyFin.comLife Insurance Revenue
CapyFin.com Forward Guidance
Kemper is focused on managing through current challenges, delivering on promises, and providing attractive, long-term intrinsic value for shareholders. The company is implementing corrective measures that are expected to become visible in the coming quarters.
Positive Outlook
- Focus on managing through current circumstances.
- Team commitment to delivering on promises.
- Aim to provide attractive, long-term intrinsic value for shareholders.
- Corrective measures expected to show results in coming quarters.
- Strong investment portfolio supporting long-term business objectives.
Challenges Ahead
- Challenging quarter with disappointing profitability.
- Pandemic-driven environmental challenges impacting results.
- Higher claim severity trends affecting profitability.
- Minimal earned benefit from rate and non-rate actions in the quarter.
- Net loss reported for the quarter.
Revenue & Expenses
Visualization of income flow from segment revenue to net income