- Increased earned premiums by $17 million in the quarter
- Improved Nonstandard personal automobile’s underlying combined
ratio 7.5 percentage points
- Generated investment portfolio pre-tax equivalent annualized book
yield of 5.4 percent in the quarter
CHICAGO--(BUSINESS WIRE)--
Kemper Corporation (NYSE: KMPR)
reported today a net loss of $0.3 million, or $0.01 per diluted share,
for the first quarter of 2017, compared to a net loss of $2.1 million,
or $0.04 per share, for the first quarter of 2016. Consolidated net
operating loss1 was $3.9 million, or $0.08 per diluted share,
for the first quarter of 2017, compared to a net operating loss1
of $0.6 million, or $0.01 per share, for the first quarter of 2016. Net
operating results decreased primarily from $17.3 million after-tax
higher catastrophe losses and $5.5 million after-tax higher adverse
prior year reserve development, primarily offset by $9.6 million
after-tax higher net investment income and improved underlying
performance in the Property & Casualty division.
|
|
Three Months Ended
|
|
(Dollars in Millions, Except Per Share Amounts) (Unaudited)
| | Mar 31,
2017
|
| Mar 31,
2016
|
|
Consolidated Net Operating Loss1 | |
$
|
(3.9
|
)
| |
$
|
(0.6
|
)
|
|
Loss from Continuing Operations
| |
(0.4
|
)
| |
(2.2
|
)
|
|
Net Loss
| |
(0.3
|
)
| |
(2.1
|
)
|
| | | |
|
| Impact of Catastrophe Losses and Related Loss Adjustment Expense
(LAE) on Net Loss | | $ | (42.7 | ) | | $ | (25.4 | ) |
| | | |
|
|
Diluted Net Loss Per Share From:
| | | | |
|
Consolidated Net Operating Loss1 | |
$
|
(0.08
|
)
| |
$
|
(0.01
|
)
|
|
Continuing Operations
| |
(0.01
|
)
| |
(0.04
|
)
|
|
Net Loss
| |
(0.01
|
)
| |
(0.04
|
)
|
| | | |
|
| Impact of Catastrophe Losses and Related LAE on Net Loss Per Share | | $ | (0.83 | ) | | $ | (0.49 | ) |
1 Consolidated net operating loss is an after-tax,
non-GAAP financial measure. See “Use of Non-GAAP Financial
Measures” for additional information.
|
“Results in the quarter were mixed as elevated catastrophe losses and
adverse prior year reserve development overshadowed significant
improvements in our nonstandard auto line and improved investment income
results,” commented Joseph P. Lacher, Jr., Kemper’s President and Chief
Executive Officer. “Our preferred auto line continues to be challenged.
It will take several quarters before the claims, rate and underwriting
actions we are taking in this line enable us to improve our underlying
results.
“Our Life & Health division once again recorded strong results and
remains a stable source of earnings and capital. We’re encouraged by the
modest growth in earned premiums as we look to profitably grow this
division.
“Investment income exceeded our expectations, driven by the strong
performance of our alternative investments,” concluded Lacher.
Capital
During the first quarter of 2017, Kemper paid dividends of $12.3 million.
Kemper ended the quarter with a book value per share of $38.67, up
slightly from $38.52 at the end of 2016, as the impact of lower yields
on our fixed maturity portfolio more than offset dividends paid. Book
value per share excluding net unrealized gains on fixed maturities was
$34.81, down slightly from $35.00 at the end of 2016, primarily from the
catastrophe losses.
Revenues
Total revenues for the first quarter of 2017 increased $40.1 million, or
7 percent, to $651.4 million, driven by $19.2 million higher nonstandard
personal auto earned premiums and $14.6 million higher net investment
income. Net realized investment gains were $5.5 million in the first
quarter of 2017, compared to net realized investment losses of $2.5
million last year.
Net investment income increased $14.6 million to $81.6 million in the
first quarter of 2017, primarily from higher returns on the alternative
investments portfolio. Net investment income from the alternative
investments portfolio was $15.3 million in the first quarter of 2017,
compared to $0.4 million in 2016. Alternative net investment income
increased $10.7 million for the Property & Casualty segment and $5.1
million for the Corporate & Other segment, but decreased $0.9 million
for the Life & Health segment. Excluding the alternative investments
portfolio, net investment income decreased slightly as lower rate offset
the larger investment base.
The investment portfolio in total generated a pre-tax equivalent
annualized book yield of 5.4 percent for the first quarter of 2017,
compared to 4.6 percent in 2016.
Segment Results
Unless otherwise noted, (i) the segment results discussed below are
presented on an after-tax basis, (ii) prior-year development includes
both catastrophe and non-catastrophe losses and LAE, (iii) catastrophe
losses and LAE exclude the impact of prior-year development, (iv)
underlying loss ratio includes loss and LAE, and (v) all comparisons are
made to the prior year quarter unless otherwise stated.
|
|
Three Months Ended
|
|
(Dollars in Millions) (Unaudited)
| | Mar 31,
2017
|
| Mar 31,
2016
|
|
Segment Net Operating Income (Loss):
| | | | |
| Property & Casualty Insurance | |
$
|
(22.1
|
)
| |
$
|
(13.1
|
)
|
| Life & Health Insurance | |
21.5
|
| |
20.3
|
|
|
Total Segment Net Operating Income (Loss)
| |
(0.6
|
)
| |
7.2
| |
|
Corporate and Other Net Operating Loss
| |
(3.3
|
)
| |
(7.8
|
)
|
|
Consolidated Net Operating Loss
| |
(3.9
|
)
| |
(0.6
|
)
|
|
Net Income (Loss) From:
| | | | |
|
Net Realized Gains on Sales of Investments
| |
6.8
| | |
4.4
| |
|
Net Impairment Losses Recognized in Earnings
| |
(3.3
|
)
| |
(6.0
|
)
|
|
Loss from Continuing Operations
| |
$
|
(0.4
|
)
| |
$
|
(2.2
|
)
|
The Property & Casualty Insurance segment reported a net operating loss
of $22.1 million in the first quarter of 2017, compared to a loss of
$13.1 million in 2016. Higher catastrophe losses and higher adverse
prior year development more than offset $8.1 million higher net
investment income and improvements in the underlying results.
Catastrophe losses were $41.5 million and adverse prior year development
was $6.9 million in the first quarter of 2017, compared to $24.4 million
of catastrophe losses and $1.3 million of adverse prior year development
last year.
The Property & Casualty Insurance segment’s underlying combined ratio
improved 2.0 percentage points to 96.8 percent in the first quarter of
2017. The underlying loss ratio improved 1.3 percentage points,
primarily from improvement in the nonstandard personal auto line,
partially offset by preferred auto’s performance. The nonstandard
personal auto underlying loss ratio improved 6.3 points to 81.5 percent
in the quarter, driven by higher average earned premiums and lower
frequency, partially offset by higher severity. The underlying loss
ratio for preferred auto increased 4.6 percentage points to 73.7 percent
driven by higher severity of bodily injury coverages, partially offset
by lower frequency.
The Life & Health Insurance segment reported net operating income of
$21.5 million for the first quarter of 2017, compared to $20.3 million
in 2016, primarily from lower expenses, partially offset by lower net
investment income.
Corporate and Other net operating loss improved $4.5 million, compared
to the first quarter of 2016, driven by higher net investment income and
lower postretirement benefits.
Unaudited condensed consolidated statements of operations for the
three months ended March 31, 2017 and 2016 are presented below.
|
|
Three Months Ended
|
|
(Dollars in Millions, Except Per Share Amounts)
| | Mar 31,
2017
|
| Mar 31,
2016
|
| Revenues: | | | | |
|
Earned Premiums
| |
$
|
563.4
| | |
$
|
546.0
| |
|
Net Investment Income
| |
81.6
| | |
67.0
| |
|
Other Income
| |
0.9
| | |
0.8
| |
|
Net Realized Gains on Sales of Investments
| |
10.5
| | |
6.8
| |
|
Other-than-temporary Impairment Losses:
| | | | |
|
Total Other-than-temporary Impairment Losses
| |
(5.2
|
)
| |
(9.6
|
)
|
|
Portion of Losses Recognized in Other Comprehensive Income
| |
0.2
|
| |
0.3
|
|
|
Net Impairment Losses Recognized in Earnings
| |
(5.0
|
)
| |
(9.3
|
)
|
| Total Revenues | |
651.4
|
| |
611.3
|
|
| Expenses: | | | | |
|
Policyholders’ Benefits and Incurred Losses and Loss Adjustment
Expenses
| |
477.4
| | |
436.2
| |
|
Insurance Expenses
| |
158.0
| | |
159.3
| |
|
Interest and Other Expenses
| |
19.5
|
| |
22.3
|
|
| Total Expenses | |
654.9
|
| |
617.8
|
|
|
Loss from Continuing Operations before Income Taxes
| |
(3.5
|
)
| |
(6.5
|
)
|
|
Income Tax Benefit
| |
3.1
|
| |
4.3
|
|
| Loss from Continuing Operations | |
(0.4
|
)
| |
(2.2
|
)
|
|
Income from Discontinued Operations
| |
0.1
|
| |
0.1
|
|
| Net Loss | |
$
|
(0.3
|
)
| |
$
|
(2.1
|
)
|
| | | |
|
| Loss from Continuing Operations Per Unrestricted Share: | | | | |
|
Basic
| |
$
|
(0.01
|
)
| |
$
|
(0.04
|
)
|
|
Diluted
| |
$
|
(0.01
|
)
| |
$
|
(0.04
|
)
|
| | | |
|
| Loss Per Unrestricted Share: | | | | |
|
Basic
| |
$
|
(0.01
|
)
| |
$
|
(0.04
|
)
|
|
Diluted
| |
$
|
(0.01
|
)
| |
$
|
(0.04
|
)
|
| | | |
|
| Weighted-average Outstanding (Shares in Thousands): | | | | |
|
Unrestricted Shares - Basic
| |
51,273.1
|
| |
51,191.5
|
|
|
Unrestricted Shares and Equivalent Shares - Diluted
| |
51,273.1
|
| |
51,191.5
|
|
| | | |
|
| Dividends Paid to Shareholders Per Share | |
$
|
0.24
|
| |
$
|
0.24
|
|
Unaudited business segment revenues for the three months ended
March 31, 2017 and 2016 are presented below.
|
|
Three Months Ended
|
|
(Dollars in Millions)
| | Mar 31,
2017
|
| Mar 31,
2016
|
| REVENUES: | | | | |
| Property & Casualty Insurance: | | | | |
|
Earned Premiums:
| | | | |
|
Personal Automobile
| |
$
|
320.7
| | |
$
|
303.3
| |
|
Homeowners
| |
66.3
| | |
68.1
| |
|
Other Personal
| |
10.7
|
| |
11.3
|
|
|
Total Personal
| |
397.7
| | |
382.7
| |
|
Commercial Automobile
| |
12.7
|
| |
13.5
|
|
|
Total Earned Premiums
| |
410.4
| | |
396.2
| |
|
Net Investment Income
| |
24.1
| | |
11.9
| |
|
Other Income
| |
0.2
|
| |
0.2
|
|
| Total Property & Casualty Insurance | |
434.7
|
| |
408.3
|
|
| Life & Health Insurance: | | | | |
|
Earned Premiums:
| | | | |
|
Life
| |
95.7
| | |
94.4
| |
|
Accident and Health
| |
39.1
| | |
36.9
| |
|
Property
| |
18.2
|
| |
18.5
|
|
|
Total Earned Premiums
| |
153.0
| | |
149.8
| |
|
Net Investment Income
| |
53.0
| | |
55.0
| |
|
Other Income
| |
0.6
|
| |
0.6
|
|
| Total Life & Health Insurance | |
206.6
|
| |
205.4
|
|
| Total Segment Revenues | |
641.3
| | |
613.7
| |
|
Net Realized Gains on Sales of Investments
| |
10.5
| | |
6.8
| |
|
Net Impairment Losses Recognized in Earnings
| |
(5.0
|
)
| |
(9.3
|
)
|
|
Other
| |
4.6
|
| |
0.1
|
|
| Total Revenues | |
$
|
651.4
|
| |
$
|
611.3
|
|
| KEMPER CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (Dollars in Millions) |
|
| Mar 31,
2017
|
| Dec 31,
2016
|
| Assets: | |
(Unaudited)
| | |
|
Investments:
| | | | |
|
Fixed Maturities at Fair Value
| |
$
|
5,240.3
| | |
$
|
5,124.9
|
| Equity Securities at Fair Value
| |
497.4
| | |
481.7
|
|
Equity Method Limited Liability Investments at Cost Plus Cumulative
Undistributed Earnings
| |
157.4
| | |
175.9
|
|
Fair Value Option Investments
| |
90.5
| | |
111.4
|
|
Short-term Investments at Cost which Approximates Fair Value
| |
244.6
| | |
273.7
|
|
Other Investments
| |
437.7
|
| |
439.9
|
|
Total Investments
| |
6,667.9
|
| |
6,607.5
|
|
Cash
| |
120.0
| | |
115.7
|
|
Receivables from Policyholders
| |
347.9
| | |
336.5
|
|
Other Receivables
| |
206.1
| | |
198.6
|
|
Deferred Policy Acquisition Costs
| |
339.9
| | |
332.0
|
| Goodwill | |
323.0
| | |
323.0
|
|
Current Income Tax Assets
| |
10.1
| | |
15.5
|
|
Deferred Income Tax Assets
| |
26.4
| | |
25.8
|
|
Other Assets
| |
265.5
|
| |
255.9
|
|
Total Assets
| |
$
|
8,306.8
|
| |
$
|
8,210.5
|
| Liabilities and Shareholders’ Equity: | | | | |
|
Insurance Reserves:
| | | | |
|
Life and Health
| |
$
|
3,489.0
| | |
$
|
3,475.3
|
|
Property and Casualty
| |
984.4
|
| |
931.4
|
|
Total Insurance Reserves
| |
4,473.4
|
| |
4,406.7
|
|
Unearned Premiums
| |
640.1
| | |
618.7
|
|
Liabilities for Unrecognized Tax Benefits
| |
6.9
| | |
5.1
|
|
Long-term Debt, Current and Non-current, at Amortized Cost
| |
751.8
| | |
751.6
|
|
Accrued Expenses and Other Liabilities
| |
451.0
|
| |
453.2
|
|
Total Liabilities
| |
6,323.2
|
| |
6,235.3
|
| Shareholders’ Equity: | | | | |
|
Common Stock
| |
5.1
| | |
5.1
|
| Paid-in Capital | |
663.7
| | |
660.3
|
|
Retained Earnings
| |
1,160.7
| | |
1,172.8
|
|
Accumulated Other Comprehensive Income
| |
154.1
|
| |
137.0
|
|
Total Shareholders’ Equity
| |
1,983.6
|
| |
1,975.2
|
|
Total Liabilities and Shareholders’ Equity
| |
$
|
8,306.8
|
| |
$
|
8,210.5
|
Unaudited selected financial information for the Property & Casualty
Insurance segment follows.
|
|
Three Months Ended
|
|
(Dollars in Millions)
| | Mar 31,
2017
|
| Mar 31,
2016
|
| | | |
|
Results of Operations |
|
Net Premiums Written
| |
$
|
428.9
|
| |
$
|
403.4
|
|
| | | |
|
|
Earned Premiums
| |
$
|
410.4
| | |
$
|
396.2
| |
|
Net Investment Income
| |
24.1
| | |
11.9
| |
|
Other Income
| |
0.2
|
| |
0.2
|
|
|
Total Revenues
| |
434.7
|
| |
408.3
|
|
|
Incurred Losses and LAE related to:
| | | | |
|
Current Year:
| | | | |
|
Non-catastrophe Losses and LAE
| |
302.6
| | |
297.4
| |
|
Catastrophe Losses and LAE
| |
63.9
| | |
37.5
| |
| Prior Years:
| | | | |
|
Non-catastrophe Losses and LAE
| |
11.8
| | |
4.7
| |
|
Catastrophe Losses and LAE
| |
(1.2
|
)
| |
(2.7
|
)
|
|
Total Incurred Losses and LAE
| |
377.1
| | |
336.9
| |
|
Insurance Expenses
| |
94.8
|
| |
94.2
|
|
|
Operating Loss
| |
(37.2
|
)
| |
(22.8
|
)
|
|
Income Tax Benefit
| |
15.1
|
| |
9.7
|
|
|
Segment Net Operating Loss
| |
$
|
(22.1
|
)
| |
$
|
(13.1
|
)
|
| | | |
|
Ratios Based On Earned Premiums |
|
Current Year Non-catastrophe Losses and LAE Ratio
| |
73.7
|
%
| |
75.0
|
%
|
|
Current Year Catastrophe Losses and LAE Ratio
| |
15.6
| | |
9.5
| |
| Prior Years Non-catastrophe Losses and LAE Ratio
| |
2.9
| | |
1.2
| |
|
Prior Years Catastrophe Losses and LAE Ratio
| |
(0.3
|
)
| |
(0.7
|
)
|
|
Total Incurred Loss and LAE Ratio
| |
91.9
| | |
85.0
| |
|
Insurance Expense Ratio
| |
23.1
|
| |
23.8
|
|
|
Combined Ratio
| |
115.0
|
%
| |
108.8
|
%
|
| | | |
|
Underlying Combined Ratio |
|
Current Year Non-catastrophe Losses and LAE Ratio
| |
73.7
|
%
| |
75.0
|
%
|
|
Insurance Expense Ratio
| |
23.1
|
| |
23.8
|
|
|
Underlying Combined Ratio
| |
96.8
|
%
| |
98.8
|
%
|
| | | |
|
Non-GAAP Measure Reconciliation |
|
Underlying Combined Ratio
| |
96.8
|
%
| |
98.8
|
%
|
|
Current Year Catastrophe Losses and LAE Ratio
| |
15.6
| | |
9.5
| |
| Prior Years Non-catastrophe Losses and LAE Ratio
| |
2.9
| | |
1.2
| |
|
Prior Years Catastrophe Losses and LAE Ratio
| |
(0.3
|
)
| |
(0.7
|
)
|
|
Combined Ratio as Reported
| |
115.0
|
%
| |
108.8
|
%
|
Unaudited selected financial information for the Life & Health
Insurance segment follows.
|
|
Three Months Ended
|
|
(Dollars in Millions)
| | Mar 31,
2017
|
| Mar 31,
2016
|
| | | |
|
Results of Operations |
| | | |
|
|
Earned Premiums
| |
$
|
153.0
| | |
$
|
149.8
| |
|
Net Investment Income
| |
53.0
| | |
55.0
| |
|
Other Income
| |
0.6
|
| |
0.6
|
|
|
Total Revenues
| |
206.6
|
| |
205.4
|
|
|
Policyholders’ Benefits and Incurred Losses and LAE
| |
100.3
| | |
99.3
| |
|
Insurance Expenses
| |
73.7
|
| |
75.1
|
|
|
Operating Profit
| |
32.6
| | |
31.0
| |
|
Income Tax Expense
| |
(11.1
|
)
| |
(10.7
|
)
|
|
Segment Net Operating Income
| |
$
|
21.5
|
| |
$
|
20.3
|
|
Use of Non-GAAP Financial Measures
Consolidated Net Operating Loss
Consolidated Net Operating Loss is an after-tax, non-GAAP financial
measure computed by excluding from loss from continuing operations the
after-tax impact of 1) net realized gains on sales of investments, 2)
net impairment losses recognized in earnings related to investments, 3)
loss from early extinguishment of debt and 4) significant non-recurring
or infrequent items that may not be indicative of ongoing operations.
Significant non-recurring items are excluded when (a) the nature of the
charge or gain is such that it is reasonably unlikely to recur within
two years and (b) there has been no similar charge or gain within the
prior two years. The most directly comparable GAAP financial measure is
income from continuing operations.
Kemper believes that Consolidated Net Operating Loss provides investors
with a valuable measure of its ongoing performance because it reveals
underlying operational performance trends that otherwise might be less
apparent if the items were not excluded. Net realized gains on sales of
investments and net impairment losses recognized in earnings related to
investments included in Kemper’s results may vary significantly between
periods and are generally driven by business decisions and external
economic developments such as capital market conditions that impact the
values of the company’s investments, the timing of which is unrelated to
the insurance underwriting process. Loss from Early Extinguishment of
Debt is driven by the company’s financing and refinancing decisions and
capital needs, as well as external economic developments such as debt
market conditions, the timing of which is unrelated to the insurance
underwriting process. Significant non-recurring items are excluded
because, by their nature, they are not indicative of Kemper’s business
or economic trends.
A reconciliation of Consolidated Net Operating Loss to Loss from
Continuing Operations for the three months ended March 31, 2017 and 2016
is presented below.
|
|
Three Months Ended
|
|
(Dollars in Millions) (Unaudited)
| | Mar 31,
2017
|
| Mar 31,
2016
|
|
Consolidated Net Operating Loss
| |
$
|
(3.9
|
)
| |
$
|
(0.6
|
)
|
|
Net Income (Loss) From:
| | | | |
|
Net Realized Gains on Sales of Investments
| |
6.8
| | |
4.4
| |
|
Net Impairment Losses Recognized in Earnings
| |
(3.3
|
)
| |
(6.0
|
)
|
|
Loss from Continuing Operations
| |
$
|
(0.4
|
)
| |
$
|
(2.2
|
)
|
Diluted Consolidated Net Operating Loss Per
Unrestricted Share
Diluted Consolidated Net Operating Loss Per Unrestricted Share is a
non-GAAP financial measure computed by dividing Consolidated Net
Operating Loss attributed to unrestricted shares by the weighted-average
unrestricted shares and equivalent shares outstanding. The most directly
comparable GAAP financial measure is Diluted Loss from Continuing
Operations Per Unrestricted Share.
A reconciliation of Diluted Consolidated Net Operating Loss Per
Unrestricted Share to Diluted Loss from Continuing Operations Per
Unrestricted Share for the three months ended March 31, 2017 and 2016 is
presented below.
|
|
Three Months Ended
|
|
(Unaudited)
| | Mar 31,
2017
|
| Mar 31,
2016
|
|
Diluted Consolidated Net Operating Loss Per Unrestricted Share
| |
$
|
(0.08
|
)
| |
$
|
(0.01
|
)
|
|
Net Income (Loss) Per Unrestricted Share From:
| | | | |
|
Net Realized Gains on Sales of Investments
| |
0.13
| | |
0.09
| |
|
Net Impairment Losses Recognized in Earnings
| |
(0.06
|
)
| |
(0.12
|
)
|
|
Diluted Loss from Continuing Operations Per Unrestricted Share
| |
$
|
(0.01
|
)
| |
$
|
(0.04
|
)
|
Book Value Per Share Excluding Net Unrealized
Gains on Fixed Maturities
Book Value Per Share Excluding Net Unrealized Gains on Fixed Maturities
is a ratio that uses a non-GAAP financial measure. It is calculated by
dividing shareholders’ equity after excluding the after-tax impact of
net unrealized gains on fixed income securities by total Common Shares
Issued and Outstanding. Book Value Per Share is the most directly
comparable GAAP financial measure. Kemper uses the trend in book value
per share, excluding the after-tax impact of net unrealized gains on
fixed income securities, in conjunction with book value per share to
identify and analyze the change in net worth attributable to management
efforts between periods. Kemper believes the non-GAAP financial measure
is useful to investors because it eliminates the effect of items that
can fluctuate significantly from period to period and are generally
driven by economic developments, primarily capital market conditions,
the magnitude and timing of which are generally not influenced by
management. Kemper believes it enhances understanding and comparability
of performance by highlighting underlying business activity and
profitability drivers.
A reconciliation of the numerator used in the computation of Book Value
Per Share Excluding Net Unrealized Gains on Fixed Maturities and Book
Value Per Share at March 31, 2017 and December 31, 2016 is presented
below.
|
(Dollars in Millions) (Unaudited)
|
| Mar 31,
2017
|
| Dec 31,
2016
|
|
Shareholders’ Equity Excluding Net Unrealized Gains on Fixed
Maturities
| |
$
|
1,785.4
| | |
$
|
1,794.6
|
|
Net Unrealized Gains on Fixed Maturities
| |
198.2
|
| |
180.6
|
|
Shareholders’ Equity
| |
$
|
1,983.6
|
| |
$
|
1,975.2
|
Underlying Combined Ratio
Underlying Combined Ratio is a non-GAAP financial measure that is
computed by adding the current year non-catastrophe losses and LAE ratio
with the insurance expense ratio. The most directly comparable GAAP
financial measure is the combined ratio, which is computed by adding
total incurred losses and LAE, including the impact of catastrophe
losses and loss and LAE reserve development from prior years, with the
insurance expense ratio. Kemper believes the underlying combined ratio
is useful to investors and is used by management to reveal the trends in
Kemper’s property and casualty insurance businesses that may be obscured
by catastrophe losses and prior-year reserve development. These
catastrophe losses may cause loss trends to vary significantly between
periods as a result of their incidence of occurrence and magnitude, and
can have a significant impact on incurred losses and LAE and the
combined ratio. Prior-year reserve development is caused by unexpected
loss development on historical reserves. Because reserve development
relates to the re-estimation of losses from earlier periods, it has no
bearing on the performance of the company’s insurance products in the
current period. Kemper believes it is useful for investors to evaluate
these components separately and in the aggregate when reviewing its
underwriting performance. The underlying combined ratio should not be
considered a substitute for the combined ratio and does not reflect the
overall underwriting profitability of our business.
Conference Call
Kemper will discuss its first quarter 2017 results in a conference call
on Friday, May 5, at 11 a.m. Eastern Time. Kemper’s conference call will
be accessible via the internet and by telephone. The phone number for
Kemper’s conference call is 844.826.3041. To listen via webcast,
register online at the investor
section of kemper.com at least 15 minutes prior to the webcast to
download and install any necessary software.
A replay of the call will be available online at the investor section of
kemper.com.
More detailed financial information can be found in Kemper’s Investor
Financial Supplement and Earnings Call Presentation for the first
quarter of 2017, which is available at the investor
section of kemper.com.
About Kemper
The Kemper family of companies is one of the nation’s leading insurers.
With $8 billion in assets, Kemper is improving the world of insurance by
offering personalized solutions for individuals, families and
businesses. Kemper's businesses collectively:
-
Offer insurance for home, auto, life, health and valuables
-
Service six million policies
-
Are represented by more than 20,000 independent agents and brokers
-
Employ 5,750 associates dedicated to providing exceptional service
-
Are licensed to sell insurance in 50 states and the District of
Columbia
Learn more about Kemper.
Caution Regarding Forward-Looking Statements
This press release may contain or incorporate by reference information
that includes or is based on forward-looking statements within the
meaning of the safe-harbor provisions of the Private Securities
Litigation Reform Act of 1995. Forward-looking statements give
expectations or forecasts of future events, and can be identified by the
fact that they relate to future actions, performance or results rather
than strictly to historical or current facts.
Any or all forward-looking statements may turn out to be wrong, and,
accordingly, readers are cautioned not to place undue reliance on such
statements, which speak only as of the date of this press release.
Forward-looking statements involve a number of risks and uncertainties
that are difficult to predict, and are not guarantees of future
performance. Among the general factors that could cause actual results
and financial condition to differ materially from estimated results and
financial condition are those listed in periodic reports filed by Kemper
with the Securities and Exchange Commission (the “SEC”). No assurances
can be given that the results and financial condition contemplated in
any forward-looking statements will be achieved or will be achieved in
any particular timetable. Kemper assumes no obligation to publicly
correct or update any forward-looking statements as a result of events
or developments subsequent to the date of this press release. The reader
is advised, however, to consult any further disclosures Kemper makes on
related subjects in its filings with the SEC.
View source version on businesswire.com: http://www.businesswire.com/news/home/20170504006434/en/
Kemper Corporation
Investors:
Diana Hickert-Hill, 312.661.4930
investors@kemper.com
Source: Kemper Corporation