On Mar 19, Zacks Investment Research downgraded
) to a Zacks Rank #5 (Strong Sell).
Why the Downgrade?
Kemper witnessed sharp downward estimate revisions after
reporting disappointing fourth-quarter 2012 results. Shares of
this multi-line insurer dipped 1.8% from Feb 8 through Mar 19.
On Feb 7, Kemper reported a fourth-quarter 2012 loss per share of
6 cents, missing the Zacks Consensus Estimate by 250%.
Total revenue slid 2.7% year over year to $596.6 million on lower
earned premiums. Planned reductions at Kemper Direct largely
induced the lower earned premiums. The expected long-term sales
growth is estimated to be negative 3.6%.
Net investment income in the fourth quarter declined 3.2% year
over year to $72.9 million, attributable to lower yields on fixed
maturity investments and higher investment expenses.
Moreover, total expense increased 3.5% to $602.2 million mostly
due to policyholders' benefits and incurred losses and loss
Cash balance at the end of the quarter plunged 62% year over year
to $96.3 million.
The Zacks Consensus Estimate for 2013 decreased 18.8% to $1.75
per share over the last 60 days as 3 of 4 estimates moved south.
For 2014, 2 of 4 estimates were revised downward over the last 60
days, sinking the Zacks Consensus Estimate by 14.1% to $2.13 per
Other Stocks to Consider
Not all multi-line insures are performing as poorly as Kemper.
Assured Guaranty Ltd
) with Zacks Rank #1 (Strong Buy) and
) with Zacks Rank #2 (Buy) are worth considering.
ASSURED GUARNTY (AGO): Free Stock Analysis
ASSURANT INC (AIZ): Free Stock Analysis
CIGNA CORP (CI): Free Stock Analysis Report
KEMPER CORP (KMPR): Free Stock Analysis
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