Kemper swings to preliminary Q3 profit as auto underwriting improves
Kemper swings to preliminary Q3 profit as auto underwriting improves
Overview
U.S. specialized insurer expects preliminary Q3 net income attributable to Kemper shareholders of about $52 mln, reversing a prior-quarter loss
Preliminary adjusted consolidated net operating income rose to about $60 mln from $26 mln sequentially
Specialty Auto combined ratio improved to 99.2%, helped by $23 mln favorable prior-year reserve development
Outlook
Kemper did not provide specific financial guidance for future quarters or the full year in its press release
Result Drivers
RESERVE DEVELOPMENT - Q3 results included $23 mln favorable prior-year reserve development
UNDERWRITING IMPROVEMENT - Specialty Auto combined ratio improved by 4.8 percentage points from Q2
INVESTMENT INCOME - Consolidated net investment income rose to $107 mln from $105 mln in Q2
Company press release: ID:nBw6Kqcza
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Preliminary Q3 EPS |
| $0.88 |
|
Preliminary Q3 Net Income |
| $52.40 mln |
|
Preliminary Q3 Adjusted Consolidated Net Operating Income |
| $59.90 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 "hold"
Wall Street's median 12-month price target for Kemper Corporation is $42.00, about 43.1% above its October 27 closing price of $29.36
The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 8 three months ago
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For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
(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.)