Kemper Q2 revenue misses estimates on lower personal auto volumes
Kemper Q2 revenue misses estimates on lower personal auto volumes
Overview
U.S. specialized insurer's Q2 revenue declined and missed analyst expectations
Adjusted consolidated net operating income for Q2 fell sharply from prior year
Company posted net loss of $464.8 mln, impacted by $460 mln non-cash goodwill impairment
Outlook
Kemper did not provide specific financial guidance for the current or future periods
Result Drivers
PERSONAL AUTO CLAIMS - Co attributed drop in Specialty Property & Casualty Insurance segment income to higher claim severity and frequency in California personal auto business
LIFE INSURANCE EARNINGS - Co said improved Life Insurance segment income was driven by higher net investment income and earned premiums
COMMERCIAL AUTO VOLUMES - Higher Specialty Commercial Automobile volumes and net investment income partially offset revenue decline, per company
Company press release: ID:nBw3FpbdFa
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Revenue | Miss | $1.09 bln | $1.12 bln (5 Analysts) |
Q2 Loss Per Share |
| $7.90 |
|
Q2 Net Loss |
| $464.80 mln |
|
Q2 Adjusted Consolidated Net Operating Income |
| $26.30 mln |
|
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 3 "hold" and 2 "sell" or "strong sell"
The average consensus recommendation for the property & casualty insurance peer group is "buy."
Wall Street's median 12-month price target for Kemper Corporation is $44.00, about 49.6% above its August 4 closing price of $29.41
The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 8 three months ago
Reuters Recommended Reads
Aug 4 - Mercury General Q2 net income rises, combined ratio improves
Aug 3 - Crawford & Co Q2 revenue dips on lower US property claims
Aug 3 - EverQuote Q2 revenue beats estimates on auto, home insurance demand
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)