NYSE$KMPR

Kemper Corporation · Q2 2020 earnings

Q2 2020 earnings · · Investor relations

Briefing

Kemper reported strong second quarter operating results with gains in net income and earnings per share, driven by specialty auto business and diversified model.

Kemper Corporation reported a strong second quarter with net income of $126.1 million, or $1.91 per diluted share, compared to $122.1 million, or $1.84 per diluted share, for the second quarter of 2019. The results were highlighted by continued strong performance in the Specialty Auto business and the value of Kemper's diversified model.

  • Delivered double-digit return on equity and solid adjusted consolidated net operating earnings per share
  • Excluding impact of $100 million of premium credits in auto business, earned premiums increased 6% in the quarter
  • Specialty P&C earned premiums increased by $80 million or 10%, excluding the impact of premium credits, and segment earnings grew ~8% over the quarter
  • Strong capital and liquidity positions continue to provide significant financial flexibility

Headline financials

Total Revenue

$1.23B

Previous: $1.28B-3.5%
EPS (adj)

$1.20

Previous: $1.38-13.0%
Book Value Per Share

$64.15

No prior period
Underlying Combined Ratio

89.1%

No prior period
Net Income

$126M

Previous: $122M+3.3%
Operating Income

$101M

Previous: $110M-8.3%
Gross Profit

$483M

Previous: $450M+7.4%
Cash & Equivalents

$389M

Previous: $104M+272.9%
Total Assets

$13.5B

Previous: $12.6B+6.9%

Revenue & EPS history

Kemper · Revenue · Quarterly

$1.23B

Q2 2020-3.5%vs Q2 2019
Beat estimate in 16 of 16 quarters(100%)
ActualEstimate

Revenue by segment

Kemper · $984M total across 2 segments · Q2 2020

  • Specialty Property & Casualty Insurance
    $776M
  • Life Insurance
    $208M

Forward guidance

Kemper's strong balance sheet and ample capital and liquidity positions provide significant financial flexibility, allowing the company to support its businesses and act on opportunities.

Tailwinds

  • Strong balance sheet
  • Ample capital and liquidity positions
  • Significant financial flexibility
  • Ability to support businesses through turbulent times
  • Ability to act on opportunities that may present themselves

Headwinds

  • Uncertain economic environment
  • Challenges of the pandemic
  • Reduction in consumer shopping activity
  • Pandemic-related activities impacted new business sales
  • Potential impacts of the Pandemic and related economic conditions on the Company’s operating and financial results

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 Q2 2020

Historical avgQ2 2020

-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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