Specialty insurance provider Kemper flips to Q3 loss despite revenue beat
Kemper reported a Q3 net loss of $21 million despite revenue exceeding analyst expectations, driven by higher earned premiums. The Specialty Property & Casualty segment faced challenges with increased claim severity, impacting operating income. However, the Life Insurance segment saw gains in net operating income. Analysts maintain a "hold" rating on Kemper shares, with a median 12-month price target of $72.00, reflecting a potential upside from its recent closing price of $43.75.
)
Overview
- Kemper Q3 revenue rose and beat analyst expectations, driven by higher earned premiums
- Company flipped to net loss of $21 mln from net income last year amid elevated expenses related to policyholders’ benefits
- Adjusted net operating income for Q3 fell significantly from the previous year
Outlook
- Company is taking actions to improve profitability and growth in Specialty P&C segment
- Company remains confident in its strategy despite challenging quarter
Result Drivers
- SPECIALTY P&C PRESSURE - Specialty Property & Casualty segment faced higher claim severity and adverse prior year development, reducing operating income
- LIFE INSURANCE GAINS - Life Insurance segment saw increased net operating income due to favorable mortality and expense management
- EARNED PREMIUMS INCREASE - Revenue rise driven by higher earned premiums in Specialty P&C, offset by reductions in non-core operations
Key Details
Metric Beat/Mis Actual Consensu
s s
Estimate
Q3 Beat $1.24 $1.12
Revenue bln bln (4
Analysts
)
Q3 EPS -$0.34
Q3 Net -$21 mln
Income
Q3 $20.40
Adjusted mln
Consolid
ated Net
Operatin
g Income
Analyst Coverage
- The current average analyst rating on the shares is “hold” and the breakdown of recommendations is 3 “strong buy” or “buy”, 2 “hold” and 1 “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 Corp is $72.00, about 39.2% above its November 4 closing price of $43.75
- The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 9 three months ago
Press Release: For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact . (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.)
