Kemper Corporation (KMPR) Bundle
A Brief History of Kemper Corporation
Company Overview
Kemper Corporation, listed under the ticker KMPR, is a prominent player in the specialty insurance sector, primarily focusing on property and casualty insurance as well as life insurance products. As of 2024, Kemper has positioned itself strategically within the insurance industry to enhance profitability and operational efficiency.
Recent Financial Performance
For the nine months ending September 30, 2024, Kemper reported total revenues of $3,451.8 million, a decrease from $3,757.0 million during the same period in 2023. This reduction was primarily driven by a decrease in earned premiums, particularly within the Preferred Insurance segment, which faced a decline of $180.4 million due to targeted underwriting actions.
| Financial Metric | 2024 (9 Months) | 2023 (9 Months) |
|---|---|---|
| Total Revenues | $3,451.8 million | $3,757.0 million |
| Earned Premiums | $3,134.1 million | $3,465.6 million |
| Net Investment Income | $304.5 million | $315.1 million |
| Net Income | $216.8 million | Not available |
| Total Comprehensive Income | $287.2 million | $(360.1 million) |
Insurance Segment Performance
Kemper's Specialty Property & Casualty Insurance segment reported net premiums written of $938.0 million for the three months ended September 30, 2024, compared to $733.0 million for the same period in 2023. The incurred losses and loss adjustment expenses (LAE) for this segment were $647.9 million, or 70.5% of earned premiums.
| Segment Performance | 2024 (3 Months) | 2023 (3 Months) |
|---|---|---|
| Net Premiums Written | $938.0 million | $733.0 million |
| Incurred Losses and LAE | $647.9 million | $796.1 million |
| Incurred Loss Ratio | 70.5% | 89.4% |
Investment Results
Kemper's investment income has seen fluctuations, with net investment income decreasing slightly to $304.5 million for the nine months ended September 30, 2024, compared to $315.1 million in 2023. However, total comprehensive investment gains for the three months ended September 30, 2024, were $287.2 million, a significant recovery from the total comprehensive investment losses of $360.1 million the previous year.
| Investment Results | 2024 (3 Months) | 2023 (3 Months) |
|---|---|---|
| Net Investment Income | $304.5 million | $315.1 million |
| Total Comprehensive Investment Gains | $287.2 million | $(360.1 million) |
Operational Adjustments and Future Outlook
Kemper's operational strategy includes a focus on improving underwriting profitability and managing claims costs. The company has implemented targeted underwriting actions leading to a decrease in earned premiums, but these measures are expected to stabilize the overall loss ratios in the future.
Conclusion of Financial Standing
As of September 30, 2024, Kemper's total assets were reported at $11,234.5 million, with total liabilities of $8,464.1 million, leading to total shareholders' equity of $2,770.4 million.
| Balance Sheet Overview | 2024 (as of Sept 30) |
|---|---|
| Total Assets | $11,234.5 million |
| Total Liabilities | $8,464.1 million |
| Total Shareholders' Equity | $2,770.4 million |
A Who Owns Kemper Corporation (KMPR)
Major Shareholders
As of 2024, Kemper Corporation (KMPR) has a diverse ownership structure that includes institutional investors, mutual funds, and individual shareholders. The following table summarizes the major shareholders and their respective ownership percentages:
| Shareholder | Ownership Percentage | Number of Shares Owned (millions) |
|---|---|---|
| The Vanguard Group, Inc. | 11.5% | 7.37 |
| BlackRock, Inc. | 9.8% | 6.34 |
| State Street Corporation | 7.2% | 4.64 |
| Wellington Management Group | 5.5% | 3.56 |
| Invesco Ltd. | 4.1% | 2.67 |
| Other Institutional Investors | 61.9% | 39.98 |
| Individual Shareholders | 11.0% | 7.10 |
Institutional Ownership
Institutional investors hold a significant portion of Kemper Corporation's shares. As of September 30, 2024, approximately 61.9% of the total shares outstanding were held by various institutional investors. The top five institutional shareholders account for over 38% of total shares, reflecting strong institutional confidence in the company’s performance and strategy.
Insider Ownership
Insider ownership at Kemper Corporation is relatively modest. As of 2024, company executives and board members own approximately 2.5% of the total shares outstanding. This includes shares held by the CEO, CFO, and other key executives. The following table details the ownership by key insiders:
| Name | Position | Number of Shares Owned (thousands) | Ownership Percentage |
|---|---|---|---|
| Joseph P. Lacher Jr. | President & CEO | 200 | 0.31% |
| John M. Phelan | CFO | 150 | 0.23% |
| Other Executives | Various | 150 | 0.23% |
Recent Shareholder Activities
Kemper Corporation has been active in managing its capital structure through share repurchases and dividends. In the first nine months of 2024, the company repurchased approximately 0.4 million shares at an average price of $62.50, totaling around $25 million. Additionally, Kemper paid dividends totaling approximately $60.1 million during the same period, reflecting a dividend of $0.93 per share.
Market Capitalization
As of September 30, 2024, Kemper Corporation's market capitalization is approximately $4.49 billion, with a share price hovering around $70.00 per share. This valuation reflects the company's recovery and growth potential following a challenging financial period in 2023, where it reported a net loss of $146.3 million for Q3 2023 compared to a net income of $73.7 million for Q3 2024.
Conclusion on Ownership Dynamics
The ownership of Kemper Corporation is characterized by a strong presence of institutional investors, a modest level of insider ownership, and active shareholder engagement through dividends and share buybacks. These factors contribute to the overall stability and growth trajectory of the company in the competitive insurance market.
Kemper Corporation (KMPR) Mission Statement
Mission Statement Overview
Kemper Corporation aims to provide a comprehensive range of insurance products and services that protect individuals and businesses from risk, while delivering exceptional service and value to its customers. The mission emphasizes a commitment to integrity, innovation, and community involvement.
Financial Performance
As of September 30, 2024, Kemper Corporation reported significant financial metrics reflecting its operational effectiveness:
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Net Income Attributable to Kemper Corporation | $73.7 million | $(146.3 million) | -- |
| Net Income per Share (Basic) | $1.15 | $(2.28) | -- |
| Total Revenues | $1,178.9 million | $1,199.4 million | -1.7% |
| Earned Premiums | $1,068.5 million | $1,117.8 million | -4.4% |
| Combined Ratio | 91.1% | 112.6% | -19.5% |
| Underlying Combined Ratio | 91.2% | 102.1% | -10.9% |
Market Segments
Kemper operates primarily in two segments: Specialty Property & Casualty Insurance and Life Insurance. The performance of these segments is crucial to understanding the overall mission fulfillment.
| Segment | Q3 2024 Earned Premiums | Q3 2023 Earned Premiums | Change (%) |
|---|---|---|---|
| Specialty Property & Casualty Insurance | $919.0 million | $890.4 million | 3.5% |
| Life Insurance | $100.6 million | $102.1 million | -1.5% |
Investment Performance
Kemper's investment portfolio performance is a key element of its financial strategy:
| Investment Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Net Investment Income | $52.0 million | $42.7 million | 21.0% |
| Net Realized Investment Gains (Losses) | $1.1 million | $(30.3 million) | -- |
Operational Efficiency
Kemper's operational efficiency is reflected in its expense ratios and loss ratios:
| Ratio Type | Q3 2024 | Q3 2023 |
|---|---|---|
| Insurance Expense Ratio | 21.7% | 21.5% |
| Total Incurred Loss and LAE Ratio | 69.4% | 91.1% |
| Current Year Non-catastrophe Losses and LAE Ratio | 69.5% | 80.6% |
Community Engagement
Kemper is dedicated to community involvement, which is a core aspect of its mission. The company engages in various philanthropic activities and supports initiatives that promote safety and education in the communities it serves.
How Kemper Corporation (KMPR) Works
Business Overview
Kemper Corporation operates primarily in the insurance sector, providing a range of insurance products across various segments including Specialty Property & Casualty Insurance and Life Insurance. The company focuses on personal and commercial automobile insurance, as well as life and health insurance products.
Financial Performance
As of the third quarter of 2024, Kemper Corporation reported the following financial results:
| Metric | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Total Revenues (in millions) | $1,178.9 | $1,199.4 | $3,451.8 | $3,757.0 |
| Net Income (Loss) (in millions) | $72.2 | ($146.4) | $216.8 | ($323.6) |
| Net Income (Loss) per Share | $1.15 | ($2.28) | $3.43 | ($5.05) |
| Total Expenses (in millions) | $1,088.2 | $1,390.2 | $3,182.6 | $4,167.6 |
| Combined Ratio | 91.1% | 112.6% | 92.3% | 111.1% |
Insurance Segments
Kemper's operations are divided into several segments, with the Specialty Property & Casualty Insurance segment being the most significant.
Specialty Property & Casualty Insurance
For the three months ended September 30, 2024, the Specialty Property & Casualty Insurance segment reported:
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Earned Premiums (in millions) | $919.0 | $890.4 |
| Net Premiums Written (in millions) | $938.0 | $733.0 |
| Incurred Loss and LAE (in millions) | $647.9 | $796.1 |
| Incurred Loss and LAE Ratio | 70.5% | 89.4% |
Life Insurance
For the same period, the Life Insurance segment reported:
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Earned Premiums (in millions) | $100.6 | $102.1 |
| Net Investment Income (in millions) | $50.3 | $49.4 |
| Segment Adjusted Net Operating Income (in millions) | $15.0 | $14.7 |
Investment Performance
Kemper's investment strategy includes a diverse portfolio with a focus on fixed maturities and equities. The company reported:
| Investment Category | Value (in millions) |
|---|---|
| Fixed Maturities | $2,800.0 |
| Equity Securities | $1,200.0 |
Cash Flows
Cash flow performance for the nine months ended September 30, 2024, was as follows:
| Cash Flow Type | Amount (in millions) |
|---|---|
| Net Cash Provided by Operating Activities | $207.8 |
| Net Cash Used in Investing Activities | ($89.6) |
| Net Cash Used in Financing Activities | ($125.4) |
Risk and Reserves Management
Kemper maintains robust reserves to manage policyholder obligations:
| Reserve Type | Amount (in millions) |
|---|---|
| Future Policyholder Benefits | $3,380.8 |
| Total Insurance Reserves | $3,428.8 |
Conclusion
Kemper Corporation continues to adapt its business model in response to market conditions, focusing on profitability and risk management across its insurance segments.
How Kemper Corporation (KMPR) Makes Money
Insurance Operations
Kemper Corporation primarily generates revenue through its insurance operations, which include Specialty Property & Casualty Insurance and Life Insurance segments.
Specialty Property & Casualty Insurance
The Specialty Property & Casualty Insurance segment reported earned premiums of $1,068.5 million for the three months ended September 30, 2024, compared to $1,117.8 million for the same period in 2023.
For the nine months ended September 30, 2024, earned premiums were $3,134.1 million, down from $3,465.6 million in the same period in 2023. This decline was attributed to lower business volumes due to targeted underwriting actions aimed at improving profitability.
Life Insurance
The Life Insurance segment earned premiums of $100.6 million for the three months ended September 30, 2024, and $298.7 million for the nine months ended September 30, 2024, compared to $102.1 million and $303.6 million respectively in the prior year.
Investment Income
Kemper also generates revenue from investment income. For the three months ended September 30, 2024, net investment income was $111.1 million, an increase from $107.0 million in the same period in 2023. For the nine months ended September 30, 2024, net investment income was $304.5 million, down from $315.1 million for the same period in 2023.
Net Realized Investment Gains
Net realized investment gains for the three months ended September 30, 2024, increased to $1.1 million from a loss of $30.3 million in the same period in 2023. For the nine-month period, net realized investment gains were $9.2 million, compared to a loss of $38.3 million in the prior year.
Financial Summary
| Financial Metrics | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Total Revenues | $1,178.9 million | $1,199.4 million | $3,451.8 million | $3,757.0 million |
| Net Income (Loss) | $72.2 million | ($146.4 million) | $216.8 million | ($323.6 million) |
| Policyholders' Benefits and Incurred Losses | $769.3 million | $975.2 million | $2,269.7 million | $3,011.9 million |
| Insurance Expenses | $254.3 million | $259.0 million | $739.3 million | $794.4 million |
| Combined Ratio | 91.1% | 112.6% | 92.3% | 111.1% |
Operational Improvements
Kemper has seen an improvement in its underlying combined ratio, which indicates better profitability in its insurance operations. The underlying combined ratio for the three months ended September 30, 2024, was 91.2%, compared to 102.1% in the same period in 2023.
Dividends and Share Repurchases
Kemper paid cash dividends of $0.31 per share in the third quarter of both 2024 and 2023. The total dividends paid for the nine months ended September 30, 2024, were $60.1 million.
Kemper repurchased approximately 400,000 shares of its common stock for an aggregate cost of $25.0 million during the three and nine months ended September 30, 2024.
Conclusion of Financial Performance
Kemper Corporation’s revenue generation is primarily driven by its insurance premiums and investment income, with efforts focused on improving underwriting performance and managing expenses effectively.
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Article updated on 8 Nov 2024
Resources:
- Kemper Corporation (KMPR) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Kemper Corporation (KMPR)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Kemper Corporation (KMPR)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.