Kemper Corp (KMPR) Reports Net Loss of $146.3 Million in Q3 2023
Kemper Corp (NYSE:KMPR) reported a net loss of $146.3 million for Q3 2023, compared to a net loss of $74.8 million for the same period in 2022.
The company's Specialty Auto Underlying Combined Ratio improved by 1.5 points sequentially.
Life business trends remained stable with strong consumer demand.
Strategic initiatives are on track to produce or exceed their targeted benefits.
On October 30, 2023, Kemper Corp (NYSE:KMPR) released its third-quarter earnings report for 2023. The company reported a net loss of $146.3 million, or $(2.28) per share, compared to a net loss of $74.8 million, or $(1.17) per share, for the same period in 2022. The net loss for Q3 2023 included a $55.5 million after-tax non-cash charge related to the termination of Kempers remaining pension plan obligations and $22.9 million of after-tax net realized losses on investments.
Financial Performance
Total revenues for Q3 2023 decreased by $162.1 million, or 11.9 percent, to $1,199.4 million, compared to the same period in 2022. This decrease was primarily driven by $109.1 million of lower Specialty P&C earned premiums and a $40.0 million decrease in Life earned premiums. The Specialty Property and Casualty Insurance segment reported a net operating loss of $33.2 million for Q3 2023, compared to a net operating loss of $28.7 million in Q3 2022. The Life Insurance segment reported a net operating income of $14.7 million for Q3 2023, compared to a net operating income of $14.0 million in Q3 2022.
Capital and Dividends
Total Shareholders Equity at the end of the quarter was $2,361.3 million, a decrease of $309.3 million, or 12 percent, since year-end 2022 primarily driven by the net loss for the year. On August 2, 2023, Kemper announced that its Board of Directors declared a quarterly dividend of $0.31 per share, or $20.2 million. The dividend was paid on August 28, 2023 to its shareholders of record as of August 14, 2023.
Outlook
Despite the net loss, Kemper Corp (NYSE:KMPR) continues to make progress towards profitability. The company's Specialty Auto Underlying Combined Ratio improved by 1.5 points sequentially, and its strategic initiatives are on track to produce or exceed their targeted benefits. Life business trends also remained stable with strong consumer demand. Kemper Corp (NYSE:KMPR) remains optimistic about its future performance.
Explore the complete 8-K earnings release (here) from Kemper Corp for further details.
This article first appeared on GuruFocus.
