NYSE$KMPR

Kemper Corporation · Q3 2021 earnings

Q3 2021 earnings · · Investor relations

Briefing

Kemper reported a net loss due to industry-related environmental pressures and an atypical surge in Florida personal injury protection litigation. Corrective actions are underway to improve profitability. The Life business saw persistency improvements but increased COVID-related mortality.

Kemper Corporation reported a net loss of $75.3 million for Q3 2021, compared to a net income of $122.3 million in Q3 2020. The results were impacted by industry-related environmental pressures, increased loss costs in P&C segments, and a surge in Florida personal injury protection litigation. Corrective actions are in progress to return to target profitability.

  • Specialty P&C earned premiums increased 18% and policies-in-force grew approximately 17.8%.
  • Specialty P&C underlying combined ratio was 108.9%, due to higher claim frequency and severity trends.
  • Specialty P&C experienced adverse prior year development of $25M, primarily driven by legal developments in Florida.
  • Consolidated catastrophe losses were $32.4 million, mainly related to Hurricane Ida and wind/hail events.

Headline financials

Total Revenue

$1.46B

Previous: $1.35B+7.5%
EPS (adj)

-$1.19

Previous: $1.36-187.5%
Net Income

-$75.3M

Previous: $122M-161.6%
Operating Income

-$131M

Previous: $112M-216.3%
Gross Profit

$244M

Previous: $476M-48.7%
Cash & Equivalents

$120M

Previous: $352M-66.0%
Total Assets

$15B

Previous: $14.1B+6.3%

Revenue & EPS history

Kemper · Revenue · Quarterly

$1.46B

Q3 2021+7.5%vs Q3 2020
Beat estimate in 16 of 16 quarters(100%)
ActualEstimate

Revenue by segment

Kemper · $1.26B total across 2 segments · Q3 2021

  • Specialty Property & Casualty Insurance
    $1.06B+16.9%
  • Life Insurance
    $207M-2.3%

Forward guidance

Kemper is taking corrective actions, including rate increases and non-rate actions, to return to target profitability and position for growth in 2023. The company's balance sheet is expected to provide financial stability, and its capital and liquidity positions are expected to enable navigation and optimization of the current environment.

Tailwinds

  • Corrective actions including rate increases are in progress.
  • Non-rate actions are in progress.
  • Targeting profitability and growth in 2023.
  • Strong capital position.
  • Strong liquidity positions.

Headwinds

  • Continued industry-related environmental pressures.
  • Increases in loss costs in P&C segments.
  • Atypical second surge in Florida personal injury protection litigation.
  • Increased COVID-related mortality due to the Delta variant.
  • Challenging 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 Q3 2021

Historical avgQ3 2021

-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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