Kemper Announces Schedule for Second Quarter 2023 Earnings Release and Preliminary Results
27 Julho 2023 - 5:05PM
Business Wire
Kemper Corporation (NYSE: KMPR) today announced that after the
markets close on Monday, August 7, 2023, Kemper will issue its
second quarter 2023 earnings release, financial supplement and Form
10-Q. Following their publication, these documents will be
available in the investor section of kemper.com.
PRELIMINARY RESULTS
Preliminary results for the second quarter of 2023 include an
estimated net loss between $95 million and $105 million and an
estimated adjusted consolidated net operating loss1 between $15
million and $25 million. Kemper expects to record an after-tax
goodwill impairment charge of approximately $45.5 million in
connection with the strategic review of Kemper Personal Insurance,
the Company’s preferred home and auto business. This non-cash
charge is included in the Company’s estimated net loss.
Estimated second quarter recorded combined ratios are as
follows:
Combined Ratio
Underlying Combined
Ratio1
Kemper Auto
107%
102%
Kemper Auto: PPA
108%
104%
Kemper Auto: Commercial Vehicle
100%
94%
Kemper Personal Insurance
113%
96%
Kemper Personal Insurance: PPA
119%
111%
Kemper Personal Insurance: Home &
Other
105%
75%
- Combined ratios for the second quarter were adversely impacted
by prior year claim reserve additions and current year
catastrophes.
- The preliminary unfavorable prior year reserve development of
approximately $26 million was largely associated with increases in
estimates within Bodily Injury and Property Damage coverages
stemming from loss activity within the second half of 2022.
- Preliminary pre-tax current year catastrophe losses for the
second quarter were approximately $39 million with the following
attribution:
- Kemper Auto: approximately $17 million
- Kemper Personal Insurance: approximately $21 million
- Kemper Life: approximately $1 million
- Life & Health after-tax income for the quarter was
approximately $9 million.
1 Non-GAAP financial measure. All Non-GAAP financial measures
are denoted with footnote 1 throughout this release.
USE OF NON-GAAP FINANCIAL MEASURES
Adjusted Consolidated Net Operating
Loss1 is an after-tax, non-GAAP financial measure and is
computed by excluding from Net Loss the after-tax impact of:
(i) Income (Loss) from Change in Fair Value of Equity and
Convertible Securities; (ii) Net Realized Investment Gains
(Losses); (iii) Impairment Losses; (iv) Acquisition and Disposition
Related Transaction, Integration, Restructuring and Other Costs;
(v) Debt Extinguishment, Pension and Other Charges; (vi) Goodwill
Impairment Charges; and (vii) 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 Net Loss. There were no applicable significant
non-recurring items that Kemper excluded from the calculation of
Adjusted Consolidated Net Operating Loss for the three months ended
June 30, 2023.
Kemper believes that Adjusted 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. Income (Loss) from Change in Fair Value of Equity and
Convertible Securities, Net Realized Investment Gains and
Impairment Gains (Losses) 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 Kemper’s investments, the timing of which is
unrelated to the insurance underwriting process. Acquisition and
Disposition Related Transactions, Integration, Restructuring and
Other Costs may vary significantly between periods and are
generally driven by the timing of acquisitions and business
decisions unrelated to the insurance underwriting process. Debt
Extinguishment, Pension and Other Charges relate to (i) loss from
early extinguishment of debt, which is driven by Kemper’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; (ii)
settlement of pension plan obligations which are business decisions
made by Kemper, the timing of which is unrelated to the
underwriting process; and (iii) other charges that are
non-standard, not part of the ordinary course of business, and
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. Goodwill
impairment charges are excluded because they are infrequent and
non-recurring charges. The preceding non-GAAP financial measures
should not be considered a substitute for the comparable GAAP
financial measures, as they do not fully recognize the
profitability of the Kemper businesses.
Underlying Combined Ratio1 is a
non-GAAP financial measure. It 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, computed by adding Total Incurred Losses and
LAE Ratio, including the impact of catastrophe losses and loss and
LAE reserve development from prior years, with the Insurance
Expense Ratio.
Kemper believes Underlying Losses and LAE and the Underlying
Combined Ratio are useful to investors and uses these financial
measures to reveal the trends in Kemper’s Property & Casualty
Insurance segment that may be obscured by catastrophe losses and
prior-year reserve development. These catastrophe losses may cause
Kemper’s 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 developments are 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 Kemper’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 Kemper’s underwriting performance.
CONFERENCE CALL DETAILS
Kemper will host its conference call to discuss second quarter
2023 results on Monday, August 7, 2023, at 5:00 pm Eastern (4:00 pm
Central). The conference call will be accessible via the internet
and by telephone at 888.259.6580, access code 65460758. To
listen via webcast, register online at the investor section of
kemper.com at least 15 minutes prior to the webcast to install any
necessary software. A replay of the webcast will be available
online at the investor section of kemper.com.
About Kemper
The Kemper family of companies is one of the nation's leading
specialized insurers. With approximately $13 billion in assets,
Kemper is improving the world of insurance by providing affordable
and easy-to-use personalized solutions to individuals, families and
businesses through its Auto, Personal Insurance and Life brands.
Kemper serves over 5.3 million policies, is represented by 26,000
agents and brokers, and has 9,100 associates dedicated to meeting
the ever-changing needs of its customers. Learn more about
Kemper.
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version on businesswire.com: https://www.businesswire.com/news/home/20230727943633/en/
Investors: Karen Guerra, 312.668.9720,
investors@kemper.com News Media: Barbara Ciesemier,
312.661.4521, bciesemier@kemper.com
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