) reported third quarter 2013 operating net income of 69 cents
per share, surpassing the Zacks Consensus Estimate of 44 cents by
56.8%. The results also surged 64.3% from the quarter number.
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The bottom line growth of Kemper Corporation was driven by better
performances in underlying property and casualty and higher net
investment income. Lower share count due to share buyback also
boosted the bottom-line
Including net realized gains on sales of investments of 56 cents
per share, income from discontinued operations of 2 cents per
share and net impairment losses recognized in earnings of 4 cents
per share, Kemper Corporation's net income also improved 29.5%
year over year in the reported quarter to $1.23 per share.
Quarterly Operational Updates
Total revenues of Kemper Corporation amounted to $635.7 million
during the reported quarter surpassing the Zacks Consensus
Estimate by 8.8%. However, the results slipped 1.5% from the
previous year quarter results. Lower earned premiums in Kemper
Specialty and Kemper Direct were attributable to the top line
decline, which in turn was partially offset by higher net
Kemper Corporation's net investment income totaled $82.4 million
in the reported quarter improving 17% year over year. Higher net
investment income from equity method investments and other higher
investments drove the upside.
Total expenses of Kemper Corporation declined 5.4% year over year
to $533.7 million. The improvement came on the back of lower
Policyholders' Benefits and Incurred Losses and Loss Adjustment
Expenses during the reported quarter. Lower insurance, interest
and other expenses also aided the improvement.
Total revenues stood at $233.8 million in the reported quarter,
in line with the prior year quarter results.
This segment reported operating net income of $11.2 million,
improving 33.3% year over year. The increase primarily came on
the back of higher net investment income, improved combined ratio
and higher previous year reserve development.
The underlying combined ratio improved 80 basis points (bps) year
over year to 96.3% in the third quarter of 2013.
total revenues of $103.1 million declined nearly 5% year over
year in the reported quarter. The decrease was primarily due to
lower earned premiums derived by the segment.
Operating net income of $5.3 million surged 96.3% year over year,
riding on the back of better performances attributed to personal
Combined ratio improved 260 bps year over year to 100.6%.
Driven by lower earned premiums, total revenues of this segment
slid 24% down to $33.2 million in the reported quarter.
Operating net income for the reported quarter skyrocketed to $6.9
million compared to $1.5 million reported in the year-ago
Combined ratio improved 2260 bps from the prior year quarter
results to 94.3% in the third quarter of 2013. This improvement
was driven by favorable expense ratio as well as loss ratio.
Life and Health Insurance:
This segment of Kemper Corporation reported total revenues of
$215.3 million in the reported quarter, up 3.4% year over year.
The growth was primarily driven by higher net investment income.
Operating net income increased 19.3% year over year to $22.9
million during the reported quarter. Higher net investment
income and sales growth in property insurance products fueled the
upside. However, higher insurance expenses were a partial offset.
Kemper Corporation's total assets stood at $7.7 billion at the
end of the reported quarter. It decreased 3.3% from the 2012 year
Kemper Corporation exited the quarter with total cash balance of
$76.1 million slid 21% from the 2012 end level.
Total shareholders' equity of Kemper Corporation also declined 7%
from Dec 31, 2012 level to $2 billion as of Sep 30, 2013.
During the reported quarter, Kemper Corporation derived a pre-tax
gain of $44 million by selling its corporate headquarters
buildings in Chicago.
Share Repurchase and Dividend Update
In the third quarter, Kemper Corporation spent $36.3 million to
buyback over 1 million shares, taking the tally to 2.5 million
shares repurchased for $85.2 million in the first nine months of
In the third quarter of 2013, Kemper Corporation paid total
dividend of $13.6 million.
Performances by Other Multi Line Insurers
American International Group Inc.
) reported third-quarter 2013 operating earnings per share of 96
cents, comfortably beating the Zacks Consensus Estimate of 93
cents. However, results lagged the year-ago quarter figure of 99
cents per share.
) reported third-quarter 2013 operating earnings per share (EPS)
of $1.34, which missed the Zacks Consensus Estimate of $1.36.
However, results were slightly ahead of the year-ago quarter's
EPS of $1.32.
) third quarter earnings came in at $1.71 per share,
significantly ahead of the Zacks Consensus Estimate of $1.45 per
share. Earnings also increased 10.3% year over year.
Kemper Corporation presently carries a Zacks Rank #1 (Strong