By Chris Munro

Feb 5 - (The Insurer) - Kemper Corporation closed Q4 2024 with a comfortable earnings beat as adjusted consolidated net operating income per diluted share of $1.78 came in well ahead of analysts’ consensus forecast, while the firm’s specialty P&C business’ combined ratio for the period improved 6.4 points to 92.1 percent.

• Adjusted consolidated net operating income per diluted share of $1.78 beats forecast

• Specialty P&C adjusted net operating income more than doubles to $101.2mn

• Specialty P&C underlying CR improved 6.5 points YoY to 91.7%

• NPW increases 31.8% YoY to $948.9mn

The adjusted consolidated net operating income per diluted share of $1.78 was a major improvement on Q4 2023’s $0.78, and was ahead of the $1.36 that was the average estimate of analysts’ predictions, as per S&P Capital IQ.

Adjusted consolidated net operating income for the three months to 31 December 2024 totalled $115.1mn, up from the prior-year period’s $50.5mn.

The company posted net income of $97.4mn for 2024’s fourth quarter, compared with the $51.4mn generated in Q4 2023.

Auto-focused Kemper’s fourth-quarter 2024 net income was impacted by catastrophe losses and related loss adjustment expense (LAE) of $4.3mn, down from $8.3mn in the prior-year period.

Its specialty P&C business booked $101.2mn of adjusted net operating income in 2024’s fourth quarter, compared with $45.3mn during the same period in 2023.

Chicago-based Kemper’s specialty P&C business posted a combined ratio of 92.1 percent for 2024’s fourth quarter, down from the prior-year period’s 98.5 percent.

The combined ratio improvement was primarily driven by higher average earned premiums per exposure resulting from rate increases and lower underlying claim frequency, Kemper explained.

Current year catastrophe losses and loss adjustment expense (LAE) contributed 20 basis points to Kemper’s specialty P&C Q4 2024 combined ratio. Prior year non-catastrophe losses and LAE also added 20 bps to the combined ratio.

Specialty P&C’s underlying combined ratio improved 6.5 points year on year to 91.7 percent.

Kemper’s specialty P&C business generated $948.9mn of net premiums written in the three months to 31 December 2024, compared with $719.7mn in the prior-year period.

Across the company, Kemper’s net investment income dipped by $1.6mn year on year to $103.0mn for the final quarter of 2024.

“I’m pleased to report that we delivered very strong results for the year and even stronger results for the quarter,” said Joseph Lacher, Kemper’s president and CEO.

“Our core businesses are performing very well, led by specialty auto’s operating results including solid policies in force growth and an underlying combined ratio outperforming long-term expectations.

“We further strengthened our balance sheet, providing us with ongoing financial flexibility. Our competitive advantages position us very well to continue to meet the needs of our underserved markets, grow our business, and deliver strong financial results,” Lacher added.