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

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: ID:nBw9T0H5Da

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(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.)