NYSE$KMPR

Kemper Corporation · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

Kemper reported a net loss impacted by catastrophe losses, prior year adverse development, and higher-than-anticipated frequency. Rate actions continue to earn in at an accelerated pace.

Kemper Corporation reported a net loss of $80.1 million for the first quarter of 2023, compared to a net loss of $86.3 million for the first quarter of 2022. Adjusted Consolidated Net Operating Loss was $65.2 million, compared to $51.6 million in the prior year. The results were impacted by elevated catastrophe losses, prior year adverse development, and higher-than-anticipated frequency.

  • Profitability impacted by catastrophe losses, prior year adverse development, and higher-than-anticipated frequency.
  • Excess mortality at or near pre-pandemic levels, albeit sequentially; claims increased in first quarter.
  • Rate actions continue to earn in at an accelerated pace.
  • Declared dividend of $0.31 per share

Headline financials

Total Revenue

$1.29B

Previous: $1.39B-6.8%
EPS (adj)

-$1.02

Previous: -$0.94-8.5%
Book Value Per Share

$41.37

Previous: $53.21-22.3%
Net Income

-$80.1M

Previous: -$94.8M+15.5%
Operating Income

-$85M

Previous: -$82.5M-3.0%
Gross Profit

$94.9M

Previous: $235M-59.7%
Cash & Equivalents

$60.6M

Previous: $297M-79.6%
Total Assets

$13.4B

Previous: $14.6B-8.3%

Revenue & EPS history

Kemper · Revenue · Quarterly

$1.29B

Q1 2023-6.8%vs Q1 2022
Beat estimate in 9 of 14 quarters(64%)
ActualEstimate

Revenue by segment

Kemper · $1.13B total across 2 segments · Q1 2023

  • Specialty Property & Casualty Insurance
    $984M-6.3%
  • Life Insurance
    $149M-27.9%

Forward guidance

Kemper expects a return to underwriting profitability by the end of 2023 and to achieve their financial targets in 2024.

Tailwinds

  • Increased rates earning in
  • Incremental rate filings
  • Tightened underwriting
  • Targeted expense reductions
  • Relentlessly focused on taking actions intended to make the necessary improvements and deliver long-term value to our shareholders.

Headwinds

  • Profitability impacted by catastrophe losses
  • Prior year adverse development
  • Higher-than-anticipated frequency
  • Weather was a significant contributor to the frequency increase and episodic in nature.
  • First quarter results were below expectations.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2023

Historical avgQ1 2023

-0.2%

Avg return

Earnings day

+1.5%

Avg return

5 days after

+2.3%

Avg return

30 days after

53%

36 / 68 earnings

Positive

+16.3%

Q3 2015

Best reaction

-20.1%

Q4 2015

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-8.8%-6.2%-24.7%
Q4 2025-13.1%-15.6%-17.5%
Q3 2025-0.8%-3.4%-10.1%
Q1 2025+1.6%+5.4%+3.7%
Q4 2024+1.4%-2.1%-2.9%
Q3 2024-2.0%-1.4%+12.5%
Q2 2024-9.1%-5.3%-2.1%
Q1 2024+0.1%+3.7%+2.6%
Q4 2023-4.5%+12.0%+2.8%
Q3 2023-3.4%+1.9%+4.8%
Q2 2023-6.6%-6.3%-7.4%
Q1 2023+1.8%-2.9%+2.3%
Q4 2022+5.9%+4.2%+10.3%
Q3 2022+4.5%+17.7%+20.1%
Q2 2022-8.8%-6.6%-1.7%
Q1 2022+12.1%+5.5%+12.0%
Q4 2021-10.7%-10.7%-12.2%
Q3 2021-7.9%-7.2%-15.4%
Q2 2021-2.5%-7.3%+3.8%
Q1 2021-4.7%-3.2%-8.6%
Q4 2020-0.9%+1.9%+10.2%
Q3 2020+5.4%+5.1%+24.0%
Q2 2020+3.8%+8.1%-0.9%
Q1 2020+3.3%-5.2%+15.9%
Q4 2019+0.8%-0.1%-14.0%
Q3 2019+1.4%+2.1%+1.9%
Q2 2019-10.2%-7.9%-17.8%
Q1 2019+3.9%+4.9%-2.0%
Q4 2018+4.1%+7.3%+6.2%
Q3 2018+2.2%+1.4%-3.2%
Q2 2018+6.5%+6.5%+8.7%
Q1 2018+12.9%+16.7%+29.6%
Q4 2017-7.3%+1.9%-1.9%
Q3 2017+5.5%+5.8%+14.9%
Q2 2017+13.4%+21.3%+22.0%
Q1 2017-1.6%-2.4%+4.2%
Q4 2016+5.5%+4.5%-2.8%
Q3 2016-1.5%+0.8%+13.0%
Q2 2016+12.2%+15.1%+10.4%
Q1 2016+1.5%
Q4 2015-20.1%
Q3 2015+16.3%
Q2 2015-1.9%
Q1 2015-1.7%
Q4 2014+3.3%
Q3 2014+0.1%
Q2 2014+0.1%
Q1 2014-7.3%
Q4 2013+1.7%
Q3 2013+3.1%
Q2 2013+1.5%
Q1 2013+2.6%
Q4 2012-3.7%
Q3 2012+0.9%
Q2 2012-2.0%
Q1 2012-0.5%
Q4 2011+0.3%
Q3 2011+8.3%
Q2 2011-7.5%
Q1 2010-3.0%
Q1 2011+1.5%
Q4 2010+7.3%
Q4 2008+7.3%
Q3 2009-0.4%
Q3 2010-0.4%
Q4 2009-8.9%
Q2 2009-8.9%
Q2 2010-8.9%

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