On Nov 12, Zacks Investment Research upgraded
) to a Zacks Rank #1 (Strong Buy).
Why the Upgrade?
Kemper Corporation has been witnessing rising earnings estimates
on the back of strong third-quarter 2013 results. Moreover, this
multiline insurer delivered positive earnings surprises for 3
straight quarters with an average beat of 51.5%. The long-term
expected earnings growth rate for this stock is 10%.
Kemper reported third-quarter 2013 results on Oct 31. Non-GAAP
earnings per share came in at 69 cents, surpassing the Zacks
Consensus Estimate of 44 cents by 56.8%. The results also surged
64.3% from the year-ago quarter number.
The bottom-line growth of Kemper was driven by better performance
in underlying property and casualty and higher net investment
income. Lower share count due to share buybacks also boosted the
Total revenues of $635.7 million of Kemper also surpassed the
Zacks Consensus Estimate by 8.8%. Total expenses 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. Lower insurance, interest and other
expenses also aided the improvement.
In the third quarter, Kemper spent $36.3 million to buy back over
1 million shares. Kemper also paid total dividend of $13.6
The Zacks Consensus Estimate for 2013 increased 5.4% to $2.35 per
share. 1 of 2 estimates was revised higher over the last 30 days.
For 2014, again 1 of 3 estimates was raised over the same time
frame pushing the Zacks Consensus Estimate up by 1.6% to $2.45
Other Stocks to Consider
Other well-performing multi-line insurers like
Old Republic International
) with a Zacks Rank #1 (Strong Buy), and
) with a Zacks Rank #2 (Buy) are also worth considering.
ASSURANT INC (AIZ): Free Stock Analysis
CIGNA CORP (CI): Free Stock Analysis Report
KEMPER CORP (KMPR): Free Stock Analysis
OLD REP INTL (ORI): Free Stock Analysis
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