Kemper Corporation Reports Strong Q1 2025 Results
Kemper Corporation has reported net income of $99.7 million, or $1.54 per diluted share, for the first quarter of 2025. This represents a significant increase from $71.3 million, or $1.10 per diluted share, in the same period last year. The company’s adjusted consolidated net operating income totaled $106.4 million, or $1.65 per diluted share, compared to $69.7 million, or $1.07 per diluted share, in the first quarter of 2024.
Key Highlights of Q1 2025 Performance
- The company highlighted continued improvement in operating performance and capital position during the quarter.
- Trailing 12-month operating cash flow reached $520 million.
- Return on equity (ROE) stood at 14%, while adjusted ROE was 21% for the period.
- Kemper’s specialty property and casualty segment posted 24% year-over-year premium growth and 14% growth in policies in force.
- The underlying combined ratio for the specialty property and casualty segment was 92% for the quarter.
Segment Performance
The life segment contributed operating income of $17 million and continued to deliver return on capital and distributable cash flow. Parent company liquidity remained stable at approximately $1 billion. The company also reported an improvement in its debt-to-capital ratio to 22.9%, reflecting strengthened balance sheet flexibility.
CEO’s Commentary
President and CEO Joseph P. Lacher, Jr. noted that the company made progress in strengthening its capital and liquidity position, reducing its debt-to-capital ratio, and increasing operating cash flows.
Full-Year 2024 Performance Review
In 2024, Kemper Corporation reported a significant turnaround in its financial performance. The company achieved a net income of $317.8 million, or $4.91 per diluted share, compared to a net loss of $272.1 million, or $(4.25) per share, in 2023. Adjusted consolidated net operating income also saw a substantial increase, reaching $381.5 million, or $5.89 per diluted share, up from a loss of $47.2 million, or $(0.74) per share, in the previous year.
Total revenues for 2024 amounted to $4.64 billion, representing a 6.2% decrease from the prior year. This decline was primarily due to the exit and run-off of the preferred insurance business, categorized under non-core operations. Despite the revenue drop, the company’s profitability improved, with a profit margin of 6.9%, a notable recovery from the net loss margin in 2023.
