Kemper Corporation (NYSE: KMPR)
reported today net income of $13.5 million, or $0.26 per diluted share,
for the first quarter of 2015, compared to $35.1 million, or $0.63 per
share, for the first quarter of 2014. Consolidated net operating income1
was $21.8 million, or $0.42 per diluted share, for the first quarter of
2015, compared to $31.5 million, or $0.56 per share, for the first
quarter of 2014. Net operating income decreased primarily from lower
favorable reserve development, a reserve adjustment on certain life
policies, higher employee retirement benefits and higher interest
expenses. These items were partially offset by improved P&C underlying
results and lower catastrophes.
|
|
|
|
|
Three Months Ended
|
(Dollars in Millions, Except Per Share Amounts) (Unaudited)
|
|
Mar 31, 2015
|
|
Mar 31, 2014
|
Consolidated Net Operating Income 1
|
|
$
|
21.8
|
|
|
$
|
31.5
|
|
Income from Continuing Operations
|
|
13.5
|
|
|
35.2
|
|
Net Income
|
|
13.5
|
|
|
35.1
|
|
|
|
|
|
|
Impact of Catastrophe Losses and Related Loss Adjustment Expense
(LAE) on Net Income
|
|
$
|
(6.7
|
)
|
|
$
|
(10.6
|
)
|
|
|
|
|
|
Diluted Net Income Per Share From:
|
|
|
|
|
Consolidated Net Operating Income 1
|
|
$
|
0.42
|
|
|
$
|
0.56
|
|
Continuing Operations
|
|
0.26
|
|
|
0.63
|
|
Net Income
|
|
0.26
|
|
|
0.63
|
|
|
|
|
|
|
Impact of Catastrophe Losses and Related LAE on Net Income Per
Share
|
|
$
|
(0.13
|
)
|
|
$
|
(0.19
|
)
|
1 Consolidated net operating income is an after-tax, non-GAAP
financial measure. See “Use of Non-GAAP Financial Measures” for
additional information.
“Our team made tangible progress in the first quarter of 2015,”
commented Donald G. Southwell, Kemper’s Chairman, President and Chief
Executive Officer. “In the Property & Casualty segment, our underlying
loss and LAE ratio improved 2.4 percentage points. While we continued to
see top line pressure, new business increased and is at the highest
level in the last six quarters. Additionally, the premium renewal ratio
is stabilizing.
“The Life & Health Group’s results decreased primarily as a result of a
$7.6 million pre-tax adjustment to deferred premium reserves. Excluding
this adjustment, net income exceeded our plans and approached last
year’s level.
“Last week, we completed the purchase of Alliance United Group, a top
writer of nonstandard auto in California. We expect Alliance United will
generate more than $200 million of earned premiums for Kemper in 2015
and be accretive to our 2015 earnings.
“In the first quarter, we refinanced our $250 million 6 percent notes
maturing in November with new $250 million 10-year notes at a coupon of
4.35 percent. Additionally, we returned $34 million to shareholders
through $22 million of common stock repurchases and $12 million of
dividends,” said Southwell.
Capital
During the first quarter of 2015, Kemper repurchased more than 600,000
shares of its common stock at a total cost of $21.9 million, or $35.68
per share, and paid dividends of $12.3 million.
Kemper ended the quarter with a book value per share excluding net
unrealized gains on fixed maturities of $34.64, essentially flat with
year-end 2014, as net income was offset by dividends. Book value per
share was $40.71, up 2 percent from $39.88 at the end of 2014, largely
from the impact of lower yields on the fixed maturities portfolio.
Revenues
Total revenues of $499.2 million for the first quarter of 2015,
decreased $55.4 million over the prior year primarily from a $46.3
million decrease in earned premiums. Realized gains decreased $3.2
million and other-than-temporary impairment losses increased $6.2
million.
Earned premiums in the Property & Casualty segment decreased $34.7
million driven by the impact of profit improvement actions taken over
the past couple of years. As the impact of profit improvement actions
moderate throughout 2015, the company anticipates it will see continued
improvements in the level of new business and renewal ratios.
Earned premiums in the Life & Health Insurance segment decreased $11.6
million driven by a $7.6 million adjustment to deferred premium reserves
for certain limited-pay life policies.
Net investment income was $70.6 million in the first quarter of 2015,
compared to $71.1 million in 2014, as lower income from the alternative
investments portfolio was mostly offset by higher interest and dividends
on fixed maturities.
The investment portfolio in total generated a pre-tax equivalent
annualized book yield of 5.0 percent for the first quarter of 2015, flat
with 2014.
Segment Results
Unless otherwise noted, (i) the segment results discussed below are
presented on an after-tax basis, (ii) prior-year development includes
both catastrophe and non-catastrophe losses and LAE, (iii) catastrophe
losses and LAE exclude the impact of prior-year development and (iv)
underlying loss ratio includes loss and LAE.
|
|
|
|
|
Three Months Ended
|
(Dollars in Millions) (Unaudited)
|
|
Mar 31, 2015
|
|
Mar 31, 2014
|
Segment Net Operating Income:
|
|
|
|
|
Property & Casualty Insurance
|
|
$
|
13.4
|
|
|
$
|
14.4
|
|
Life & Health Insurance
|
|
16.1
|
|
|
22.1
|
|
Total Segment Net Operating Income
|
|
29.5
|
|
|
36.5
|
|
Corporate and Other Net Operating Loss
|
|
(7.7
|
)
|
|
(5.0
|
)
|
Consolidated Net Operating Income
|
|
21.8
|
|
|
31.5
|
|
Net Income (Loss) From:
|
|
|
|
|
Net Realized Gains on Sales of Investments
|
|
2.2
|
|
|
4.2
|
|
Net Impairment Losses Recognized in Earnings
|
|
(4.6
|
)
|
|
(0.5
|
)
|
Loss from Early Extinguishment of Debt
|
|
(5.9
|
)
|
|
—
|
|
Income from Continuing Operations
|
|
$
|
13.5
|
|
|
$
|
35.2
|
|
|
|
|
|
|
|
|
|
|
The Property & Casualty Insurance segment reported net operating income
of $13.4 million in the first quarter of 2015, compared to $14.4 million
in 2014. Results in the first quarter of 2015 included favorable prior
year reserve development of $4.7 million and catastrophe losses of $6.7
million, compared to $10.0 million and $10.4 million, respectively, in
2014. Additionally, net investment income decreased $2.0 million. The
underlying combined ratio improved 1.3 percentage points to 97.9
percent, driven by a 2.4 percentage point improvement in the underlying
loss and LAE ratio, partially offset by a 1.1 percentage point increase
in the expense ratio. The first quarter underlying loss and LAE ratio of
69.0 percent, improved primarily from increases in average earned
premium. Property and casualty operating expenses decreased $6.6 million
pre-tax in the quarter, driven by a reduction in variable costs and
various cost-cutting measures. However, the expense ratio increased to
28.9 percent in the first quarter of 2015, compared to 27.8 percent in
2014 as earned premiums declined.
The Life & Health Insurance segment reported net operating income of
$16.1 million for the first quarter of 2015, compared to $22.1 million
in 2014. Results decreased largely from a $7.6 million pre-tax
adjustment to deferred premium reserves for certain limited-pay life
policies.
Corporate and Other net operating loss increased $2.7 million compared
to the first quarter of 2014, driven by $2.3 million of higher employee
retirement benefits and $1.9 million higher interest expense, partially
offset by $1.2 million of higher unallocated net investment income.
Unaudited condensed consolidated statements of income for the three
months ended March 31, 2015 and 2014 are presented below:
|
|
Three Months Ended
|
(Dollars in Millions, Except Per Share Amounts)
|
|
Mar 31, 2015
|
|
Mar 31, 2014
|
Revenues:
|
|
|
|
|
Earned Premiums
|
|
$
|
431.3
|
|
|
$
|
477.6
|
|
Net Investment Income
|
|
70.6
|
|
|
71.1
|
|
Other Income
|
|
0.9
|
|
|
0.1
|
|
Net Realized Gains on Sales of Investments
|
|
3.4
|
|
|
6.6
|
|
Other-than-temporary Impairment Losses:
|
|
|
|
|
Total Other-than-temporary Impairment Losses
|
|
(7.0
|
)
|
|
(0.8
|
)
|
Portion of Losses Recognized in Other Comprehensive Income
|
|
—
|
|
|
—
|
|
Net Impairment Losses Recognized in Earnings
|
|
(7.0
|
)
|
|
(0.8
|
)
|
Total Revenues
|
|
499.2
|
|
|
554.6
|
|
Expenses:
|
|
|
|
|
Policyholders’ Benefits and Incurred Losses and Loss Adjustment
Expenses
|
|
297.7
|
|
|
327.9
|
|
Insurance Expenses
|
|
144.9
|
|
|
152.1
|
|
Loss from Early Extinguishment of Debt
|
|
9.1
|
|
|
—
|
|
Interest and Other Expenses
|
|
29.7
|
|
|
22.7
|
|
Total Expenses
|
|
481.4
|
|
|
502.7
|
|
Income from Continuing Operations before Income Taxes
|
|
17.8
|
|
|
51.9
|
|
Income Tax Expense
|
|
(4.3
|
)
|
|
(16.7
|
)
|
Income from Continuing Operations
|
|
13.5
|
|
|
35.2
|
|
Income from Discontinued Operations
|
|
—
|
|
|
(0.1
|
)
|
Net Income
|
|
$
|
13.5
|
|
|
$
|
35.1
|
|
|
|
|
|
|
Income from Continuing Operations Per Unrestricted Share:
|
|
|
|
|
Basic
|
|
$
|
0.26
|
|
|
$
|
0.63
|
|
Diluted
|
|
$
|
0.26
|
|
|
$
|
0.63
|
|
|
|
|
|
|
Net Income Per Unrestricted Share:
|
|
|
|
|
Basic
|
|
$
|
0.26
|
|
|
$
|
0.63
|
|
Diluted
|
|
$
|
0.26
|
|
|
$
|
0.63
|
|
|
|
|
|
|
Weighted-average Outstanding (Shares in Thousands):
|
|
|
|
|
Unrestricted Shares - Basic
|
|
51,872.8
|
|
|
55,312.9
|
|
Unrestricted Shares and Equivalent Shares - Diluted
|
|
51,969.3
|
|
|
55,443.1
|
|
|
|
|
|
|
Dividends Paid to Shareholders Per Share
|
|
$
|
0.24
|
|
|
$
|
0.24
|
|
|
|
|
|
|
|
|
|
|
Unaudited business segment revenues for the three months ended
March 31, 2015 and 2014 are presented below:
|
|
Three Months Ended
|
(Dollars in Millions)
|
|
Mar 31, 2015
|
|
Mar 31, 2014
|
REVENUES
|
|
|
|
|
Property & Casualty Insurance:
|
|
|
|
|
Earned Premiums:
|
|
|
|
|
Personal Automobile
|
|
$
|
189.8
|
|
|
$
|
216.3
|
|
Homeowners
|
|
72.6
|
|
|
79.7
|
|
Other Personal
|
|
11.7
|
|
|
13.2
|
|
Total Personal
|
|
274.1
|
|
|
309.2
|
|
Commercial Automobile
|
|
13.5
|
|
|
13.1
|
|
Total Earned Premiums
|
|
287.6
|
|
|
322.3
|
|
Net Investment Income
|
|
14.8
|
|
|
17.6
|
|
Other Income
|
|
0.3
|
|
|
0.1
|
|
Total Property & Casualty Insurance
|
|
302.7
|
|
|
340.0
|
|
Life & Health Insurance:
|
|
|
|
|
Earned Premiums:
|
|
|
|
|
Life
|
|
88.0
|
|
|
97.6
|
|
Accident and Health
|
|
36.8
|
|
|
38.8
|
|
Property
|
|
18.9
|
|
|
18.9
|
|
Total Earned Premiums
|
|
143.7
|
|
|
155.3
|
|
Net Investment Income
|
|
50.4
|
|
|
50.2
|
|
Other Income
|
|
0.8
|
|
|
—
|
|
Total Life & Health Insurance
|
|
194.9
|
|
|
205.5
|
|
Total Segment Revenues
|
|
497.6
|
|
|
545.5
|
|
Net Realized Gains on Sales of Investments
|
|
3.4
|
|
|
6.6
|
|
Net Impairment Losses Recognized in Earnings
|
|
(7.0
|
)
|
|
(0.8
|
)
|
Other
|
|
5.2
|
|
|
3.3
|
|
Total Revenues
|
|
$
|
499.2
|
|
|
$
|
554.6
|
|
|
|
|
|
|
|
|
|
|
KEMPER CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in Millions)
|
|
|
Mar 31, 2015
|
|
Dec 31, 2014
|
Assets:
|
|
(Unaudited)
|
|
|
Investments:
|
|
|
|
|
Fixed Maturities at Fair Value
|
|
$
|
4,803.1
|
|
|
$
|
4,777.6
|
Equity Securities at Fair Value
|
|
628.6
|
|
|
632.2
|
Equity Method Limited Liability Investments at Cost Plus Cumulative
Undistributed Earnings
|
|
168.1
|
|
|
184.8
|
Fair Value Option Investments
|
|
54.2
|
|
|
53.3
|
Short-term Investments at Cost which Approximates Fair Value
|
|
357.3
|
|
|
342.2
|
Other Investments
|
|
450.1
|
|
|
449.6
|
Total Investments
|
|
6,461.4
|
|
|
6,439.7
|
Cash
|
|
87.7
|
|
|
76.1
|
Receivables from Policyholders
|
|
293.1
|
|
|
295.3
|
Other Receivables
|
|
197.0
|
|
|
187.0
|
Deferred Policy Acquisition Costs
|
|
305.6
|
|
|
303.3
|
Goodwill
|
|
311.8
|
|
|
311.8
|
Current Income Tax Assets
|
|
10.9
|
|
|
—
|
Other Assets
|
|
217.5
|
|
|
220.2
|
Total Assets
|
|
$
|
7,885.0
|
|
|
$
|
7,833.4
|
Liabilities and Shareholders’ Equity:
|
|
|
|
|
Insurance Reserves:
|
|
|
|
|
Life and Health
|
|
$
|
3,299.5
|
|
|
$
|
3,273.7
|
Property and Casualty
|
|
720.1
|
|
|
733.9
|
Total Insurance Reserves
|
|
4,019.6
|
|
|
4,007.6
|
Unearned Premiums
|
|
530.0
|
|
|
536.9
|
Liabilities for Income Taxes
|
|
58.2
|
|
|
36.5
|
Debt at Amortized Cost
|
|
750.0
|
|
|
752.1
|
Accrued Expenses and Other Liabilities
|
|
417.3
|
|
|
409.6
|
Total Liabilities
|
|
5,775.1
|
|
|
5,742.7
|
Shareholders’ Equity:
|
|
|
|
|
Common Stock
|
|
5.2
|
|
|
5.2
|
Paid-in Capital
|
|
655.1
|
|
|
660.1
|
Retained Earnings
|
|
1,189.3
|
|
|
1,202.7
|
Accumulated Other Comprehensive Income
|
|
260.3
|
|
|
222.7
|
Total Shareholders’ Equity
|
|
2,109.9
|
|
|
2,090.7
|
Total Liabilities and Shareholders’ Equity
|
|
$
|
7,885.0
|
|
|
$
|
7,833.4
|
|
|
|
|
|
|
|
|
Unaudited selected financial information for the Property & Casualty
Insurance segment follows:
|
|
Three Months Ended
|
(Dollars in Millions)
|
|
Mar 31, 2015
|
|
Mar 31, 2014
|
|
|
|
|
|
Results of Operations
|
Net Premiums Written
|
|
$
|
279.7
|
|
|
$
|
304.3
|
|
|
|
|
|
|
Earned Premiums
|
|
$
|
287.6
|
|
|
$
|
322.3
|
|
Net Investment Income
|
|
14.8
|
|
|
17.6
|
|
Other Income
|
|
0.3
|
|
|
0.1
|
|
Total Revenues
|
|
302.7
|
|
|
340.0
|
|
Incurred Losses and LAE related to:
|
|
|
|
|
Current Year:
|
|
|
|
|
Non-catastrophe Losses and LAE
|
|
198.5
|
|
|
230.4
|
|
Catastrophe Losses and LAE
|
|
10.3
|
|
|
16.0
|
|
Prior Years:
|
|
|
|
|
Non-catastrophe Losses and LAE
|
|
(5.0
|
)
|
|
(12.7
|
)
|
Catastrophe Losses and LAE
|
|
(2.2
|
)
|
|
(2.7
|
)
|
Total Incurred Losses and LAE
|
|
201.6
|
|
|
231.0
|
|
Insurance Expenses
|
|
83.1
|
|
|
89.7
|
|
Operating Profit
|
|
18.0
|
|
|
19.3
|
|
Income Tax Expense
|
|
(4.6
|
)
|
|
(4.9
|
)
|
Segment Net Operating Income
|
|
$
|
13.4
|
|
|
$
|
14.4
|
|
|
|
|
|
|
Ratios Based On Earned Premiums
|
Current Year Non-catastrophe Losses and LAE Ratio
|
|
69.0
|
%
|
|
71.4
|
%
|
Current Year Catastrophe Losses and LAE Ratio
|
|
3.6
|
|
|
5.0
|
|
Prior Years Non-catastrophe Losses and LAE Ratio
|
|
(1.7
|
)
|
|
(3.9
|
)
|
Prior Years Catastrophe Losses and LAE Ratio
|
|
(0.8
|
)
|
|
(0.8
|
)
|
Total Incurred Loss and LAE Ratio
|
|
70.1
|
|
|
71.7
|
|
Insurance Expense Ratio
|
|
28.9
|
|
|
27.8
|
|
Combined Ratio
|
|
99.0
|
%
|
|
99.5
|
%
|
|
|
|
|
|
Underlying Combined Ratio
|
Current Year Non-catastrophe Losses and LAE Ratio
|
|
69.0
|
%
|
|
71.4
|
%
|
Insurance Expense Ratio
|
|
28.9
|
|
|
27.8
|
|
Underlying Combined Ratio
|
|
97.9
|
%
|
|
99.2
|
%
|
|
|
|
|
|
Non-GAAP Measure Reconciliation
|
Underlying Combined Ratio
|
|
97.9
|
%
|
|
99.2
|
%
|
Current Year Catastrophe Losses and LAE Ratio
|
|
3.6
|
|
|
5.0
|
|
Prior Years Non-catastrophe Losses and LAE Ratio
|
|
(1.7
|
)
|
|
(3.9
|
)
|
Prior Years Catastrophe Losses and LAE Ratio
|
|
(0.8
|
)
|
|
(0.8
|
)
|
Combined Ratio as Reported
|
|
99.0
|
%
|
|
99.5
|
%
|
|
|
|
|
|
|
|
Unaudited selected financial information for the Life & Health
Insurance segment follows:
|
|
Three Months Ended
|
(Dollars in Millions)
|
|
Mar 31, 2015
|
|
Mar 31, 2014
|
|
|
|
|
|
Results of Operations
|
|
|
|
|
|
Earned Premiums:
|
|
|
|
|
Life
|
|
$
|
88.0
|
|
|
$
|
97.6
|
|
Accident and Health
|
|
36.8
|
|
|
38.8
|
|
Property
|
|
18.9
|
|
|
18.9
|
|
Total Earned Premiums
|
|
143.7
|
|
|
155.3
|
|
Net Investment Income
|
|
50.4
|
|
|
50.2
|
|
Other Income
|
|
0.8
|
|
|
—
|
|
Total Revenues
|
|
194.9
|
|
|
205.5
|
|
Policyholders’ Benefits and Incurred Losses and LAE
|
|
96.1
|
|
|
97.0
|
|
Insurance Expenses
|
|
74.0
|
|
|
73.9
|
|
Operating Profit
|
|
24.8
|
|
|
34.6
|
|
Income Tax Expense
|
|
(8.7
|
)
|
|
(12.5
|
)
|
Segment Net Operating Income
|
|
$
|
16.1
|
|
|
$
|
22.1
|
|
|
|
|
|
|
|
|
|
|
Use of Non-GAAP Financial Measures
Consolidated Net Operating Income
Consolidated Net Operating Income is an after-tax, non-GAAP financial
measure computed by excluding from income from continuing operations the
after-tax impact of 1) net realized gains on sales of investments, 2)
net impairment losses recognized in earnings related to investments, 3)
loss from early extinguishment of debt and 4) 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
income from continuing operations.
Kemper believes that Consolidated Net Operating Income 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. Net realized gains on
sales of investments and net impairment losses recognized in earnings
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 company’s investments, the
timing of which is unrelated to the insurance underwriting process. Loss
from Early Extinguishment of Debt is driven by the Company’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. Significant
non-recurring items are excluded because, by their nature, they are not
indicative of Kemper’s business or economic trends.
A reconciliation of Consolidated Net Operating Income to Income from
Continuing Operations for the three months ended March 31, 2015 and 2014
is presented below:
|
|
Three Months Ended
|
(Dollars in Millions) (Unaudited)
|
|
Mar 31, 2015
|
|
Mar 31, 2014
|
Consolidated Net Operating Income
|
|
$
|
21.8
|
|
|
$
|
31.5
|
|
Net Income (Loss) From:
|
|
|
|
|
Net Realized Gains on Sales of Investments
|
|
2.2
|
|
|
4.2
|
|
Net Impairment Losses Recognized in Earnings
|
|
(4.6
|
)
|
|
(0.5
|
)
|
Loss from Early Extinguishment of Debt
|
|
(5.9
|
)
|
|
—
|
|
Income from Continuing Operations
|
|
$
|
13.5
|
|
|
$
|
35.2
|
|
|
|
|
|
|
|
|
|
|
Diluted Consolidated Net Operating Income Per
Unrestricted Share
Diluted Consolidated Net Operating Income Per Unrestricted Share is a
non-GAAP financial measure computed by dividing Consolidated Net
Operating Income attributed to unrestricted shares by the
weighted-average unrestricted shares and equivalent shares outstanding.
The most directly comparable GAAP financial measure is Diluted Income
from Continuing Operations Per Unrestricted Share.
A reconciliation of Diluted Consolidated Net Operating Income Per
Unrestricted Share to Diluted Income from Continuing Operations Per
Unrestricted Share for the three months ended March 31, 2015 and 2014 is
presented below:
|
|
Three Months Ended
|
(Unaudited)
|
|
Mar 31, 2015
|
|
Mar 31, 2014
|
Diluted Consolidated Net Operating Income Per Unrestricted Share
|
|
$
|
0.42
|
|
|
$
|
0.56
|
|
Net Income (Loss) Per Unrestricted Share From:
|
|
|
|
|
Net Realized Gains on Sales of Investments
|
|
0.04
|
|
|
0.08
|
|
Net Impairment Losses Recognized in Earnings
|
|
(0.09
|
)
|
|
(0.01
|
)
|
Loss from Early Extinguishment of Debt
|
|
(0.11
|
)
|
|
—
|
|
Diluted Income from Continuing Operations Per Unrestricted Share
|
|
$
|
0.26
|
|
|
$
|
0.63
|
|
|
|
|
|
|
|
|
|
|
Book Value Per Share Excluding Net Unrealized
Gains on Fixed Maturities
Book Value Per Share Excluding Net Unrealized Gains on Fixed Maturities
is a ratio that uses a non-GAAP financial measure. It is calculated by
dividing shareholders’ equity after excluding the after-tax impact of
net unrealized gains on fixed income securities by total Common Shares
Issued and Outstanding. Book Value Per Share is the most directly
comparable GAAP financial measure. Kemper uses the trend in book value
per share, excluding the after-tax impact of net unrealized gains on
fixed income securities in conjunction with book value per share to
identify and analyze the change in net worth attributable to management
efforts between periods. Kemper believes the non-GAAP financial measure
is useful to investors because it eliminates the effect of items that
can fluctuate significantly from period to period and are generally
driven by economic developments, primarily capital market conditions,
the magnitude and timing of which are generally not influenced by
management. Kemper believes it enhances understanding and comparability
of performance by highlighting underlying business activity and
profitability drivers.
A reconciliation of the numerator used in the computation of Book Value
Per Share Excluding Net Unrealized Gains on Fixed Maturities and Book
Value Per Share at March 31, 2015 and December 31, 2014 is presented
below:
(Dollars in Millions) (Unaudited)
|
|
Mar 31, 2015
|
|
Dec 31, 2014
|
Shareholders’ Equity Excluding Net Unrealized Gains on Fixed
Maturities
|
|
$
|
1,795.3
|
|
|
$
|
1,808.5
|
Net Unrealized Gains on Fixed Maturities
|
|
314.6
|
|
|
282.2
|
Shareholders’ Equity
|
|
$
|
2,109.9
|
|
|
$
|
2,090.7
|
|
|
|
|
|
|
|
|
Underlying Combined Ratio
Underlying Combined Ratio is a non-GAAP financial measure, that 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, which is computed by adding
total incurred losses and LAE, including the impact of catastrophe
losses, and loss and LAE reserve development from prior years with the
insurance expense ratio. Kemper believes the underlying combined ratio
is useful to investors and is used by management to reveal the trends in
Kemper’s property and casualty insurance businesses that may be obscured
by catastrophe losses and prior-year reserve development. These
catastrophe losses may cause 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 development is 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 the company’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 its
underwriting performance. The underlying combined ratio should not be
considered a substitute for the combined ratio and does not reflect the
overall underwriting profitability of our business.
Conference Call
Kemper will discuss its first quarter 2015 results in a conference call
on Friday, May 8, at 11 a.m. Eastern Time. Kemper’s conference call will
be accessible via the internet and by telephone. The phone number for
Kemper’s conference call is 866.393.1565. To listen via webcast,
register online at the investor section of kemper.com at least 15
minutes prior to the webcast to download and install any necessary
software.
A replay of the call will be available through May 22, 2015 at 855.859.2056
using conference ID number 19511835.
More detailed financial information can be found in Kemper’s Investor
Financial Supplement for the first quarter of 2015, which is available
at the investor
section of kemper.com.
About Kemper
The Kemper family of companies is one of the nation’s leading insurers.
With $8 billion in assets, Kemper is improving the world of insurance by
offering personalized solutions for individuals, families and
businesses. Kemper's businesses collectively:
-
Offer insurance for home, auto, life, health and valuables
-
Service six million policies
-
Are represented by more than 20,000 independent agents and brokers
-
Employ 6,000 associates dedicated to providing exceptional service
-
Are licensed to sell insurance in 50 states and the District of
Columbia
Learn more about Kemper.
Caution Regarding Forward-Looking Statements
This press release may contain or incorporate by reference information
that includes or is based on forward-looking statements within the
meaning of the safe-harbor provisions of the Private Securities
Litigation Reform Act of 1995. Forward-looking statements give
expectations or forecasts of future events, and can be identified by the
fact that they relate to future actions, performance or results rather
than strictly to historical or current facts.
Any or all forward-looking statements may turn out to be wrong, and,
accordingly, readers are cautioned not to place undue reliance on such
statements, which speak only as of the date of this press release.
Forward-looking statements involve a number of risks and uncertainties
that are difficult to predict, and are not guarantees of future
performance. Among the general factors that could cause actual results
and financial condition to differ materially from estimated results and
financial condition are those listed in periodic reports filed by Kemper
with the Securities and Exchange Commission (the “SEC”). No assurances
can be given that the results and financial condition contemplated in
any forward-looking statements will be achieved or will be achieved in
any particular timetable. Kemper assumes no obligation to publicly
correct or update any forward-looking statements as a result of events
or developments subsequent to the date of this press release. The reader
is advised, however, to consult any further disclosures Kemper makes on
related subjects in its filings with the SEC.
Copyright Business Wire 2015