Company Overview - Kemper (KMPR) currently holds a Momentum Style Score of B, indicating a positive momentum outlook [3] - The company has a Zacks Rank of 2 (Buy), suggesting strong potential for outperformance in the market [4][12] Price Performance - Over the past week, Kemper's shares increased by 0.52%, while the Zacks Insurance - Multi line industry rose by 2.46% [7] - In a longer time frame, Kemper's monthly price change is 12.67%, significantly outperforming the industry's 3.57% [7] - Over the past quarter, Kemper shares have risen by 13.08%, and over the last year, they have increased by 65.75%, compared to the S&P 500's gains of 7.52% and 33.61%, respectively [8] Trading Volume - The average 20-day trading volume for Kemper is 429,546 shares, which serves as a baseline for price-to-volume analysis [9] Earnings Outlook - In the last two months, three earnings estimates for Kemper have been revised upwards, while none have been lowered, leading to an increase in the consensus estimate from $5.17 to $5.36 [11] - For the next fiscal year, two estimates have also moved upwards with no downward revisions [11]

Financial Data and Key Metrics Changes - The company reported net income of $74 million, with a return on equity (ROE) of approximately 11% and an adjusted ROE of about 17% [10][15] - The underlying combined ratio for Specialty P&C improved to 91.3%, indicating a significant year-over-year improvement [10][16] - Net investment income for the quarter was $111 million, with a pre-tax equivalent annualized book yield of 4.8% [21] Business Line Data and Key Metrics Changes - Specialty Auto business generated sequential quarter policy in force (PIF) growth in the mid-single digits, with a combined ratio of 91.2% for private passenger auto and 91.8% for commercial auto [9][23] - The Life segment maintained stable underlying operating results, with strong return on capital and distributable cash flows [29] Market Data and Key Metrics Changes - The company observed increased consumer shopping behavior, leading to higher demand for its products, particularly in the Specialty Auto segment [9][11] - The company anticipates ongoing growth in California, Florida, and Texas, with expectations for smaller markets to show higher growth levels as re-expansion efforts take hold [27] Company Strategy and Development Direction - The company plans to fully retire $450 million of debt due in February, which will strengthen its balance sheet and increase financial flexibility [12][20] - The management emphasized a focus on sustainable long-term profitable growth, leveraging competitive advantages in a hard market [30][43] Management's Comments on Operating Environment and Future Outlook - Management noted that the hard market conditions are expected to persist, providing opportunities for profitable growth [9][28] - The company expressed confidence in its ability to grow profitably, despite historical patterns of reduced shopping in the second half of the year [67] Other Important Information - Total catastrophe losses for the third quarter were approximately $16 million, with minimal impact on financials from recent catastrophic events [13] - The company repurchased $25 million in shares during the quarter and has approximately $136 million of authorized share repurchases remaining [12][20] Q&A Session Summary Question: Can you provide details on the hard market conditions in different states? - Management explained that California is experiencing faster growth than Florida and Texas, which are returning to a more normal competitive dynamic [35][40] Question: How does the company plan to balance debt retirement with growth capital needs? - The company intends to retire the debt using holding company cash and investments, while maintaining sufficient capital for future growth [44][45] Question: What is the outlook for investment income? - The company expects a run rate of around $105 million to $107 million per quarter for investment income, barring significant volatility [60] Question: Are there any significant changes in the competitive environment? - Management indicated that there has not been a meaningful shift in capacity going to residual markets, but they are monitoring potential impacts from price increases [61] Question: What are the trends in frequency and severity in commercial auto? - The company reported favorable frequency trends, contributing to lower underlying combined ratios, with no significant changes in severity patterns [70][64]

Core Insights - Kemper reported $1.18 billion in revenue for Q3 2024, a year-over-year decline of 3.7%, but exceeded the Zacks Consensus Estimate of $1.12 billion by 5% [1] - The company achieved an EPS of $1.62, a significant improvement from -$0.44 a year ago, resulting in an EPS surprise of 24.62% against the consensus estimate of $1.30 [1] Revenue and Earnings Performance - Specialty Property & Casualty Insurance - Commercial Automobile Insurance incurred loss and LAE ratio was 74.9%, slightly above the average estimate of 74.2% [3] - Specialty Property & Casualty Insurance - Personal Automobile Insurance incurred loss and LAE ratio was 69.4%, better than the average estimate of 71.5% [3] - Life and Health Insurance earned premiums were $100.60 million, exceeding the average estimate of $98.29 million, representing a year-over-year decline of 1.5% [3] - Specialty Property & Casualty Insurance earned premiums totaled $919 million, surpassing the average estimate of $858.84 million, reflecting a year-over-year increase of 3.2% [3] - Net investment income was reported at $111.10 million, exceeding the average estimate of $99.24 million, with a year-over-year increase of 36.2% [3] - Specialty Property & Casualty Insurance other income was $1.40 million, slightly above the estimated $1.10 million, but down 12.5% year-over-year [3] - Personal Automobile earned premiums were $731.30 million, exceeding the estimate of $687.91 million, with a year-over-year increase of 1% [3] - Commercial Automobile earned premiums were $187.70 million, surpassing the estimate of $178.96 million, reflecting a year-over-year increase of 12.8% [3] - Specialty Property & Casualty Insurance total revenue was $972.60 million, exceeding the average estimate of $915.42 million, with a year-over-year increase of 4% [3] - Overall earned premiums were $1.07 billion, above the average estimate of $1.02 billion, but down 4.4% year-over-year [3] - Life and Health Insurance net investment income was $50.30 million, exceeding the estimate of $38 million, with a year-over-year increase of 1.8% [3] Stock Performance - Kemper shares returned 4.6% over the past month, outperforming the Zacks S&P 500 composite's 1.8% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Group 1 - Kemper reported quarterly earnings of $1.62 per share, exceeding the Zacks Consensus Estimate of $1.30 per share, and showing a significant improvement from a loss of $0.44 per share a year ago, resulting in an earnings surprise of 24.62% [1] - The company generated revenues of $1.18 billion for the quarter ended September 2024, surpassing the Zacks Consensus Estimate by 5%, although this represents a decline from year-ago revenues of $1.22 billion [2] - Kemper shares have increased approximately 30.5% year-to-date, outperforming the S&P 500's gain of 22.3% [3] Group 2 - The earnings outlook for Kemper is mixed, with the current consensus EPS estimate for the upcoming quarter at $1.35 on revenues of $1.15 billion, and for the current fiscal year at $5.02 on revenues of $4.53 billion [7] - The Zacks Industry Rank for Insurance - Multi line is currently in the top 28% of over 250 Zacks industries, indicating a favorable outlook for the industry [8] Group 3 - Assured Guaranty, another company in the same industry, is expected to report quarterly earnings of $1.42 per share, reflecting a year-over-year decline of 58.5%, with revenues anticipated to be $183.8 million, down 8.6% from the previous year [9][10]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 ______________________________________________________ FORM 10-Q ______________________________________________________ ☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the Quarterly Period Ended 9/30/2024 OR ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the Transition Period from to Commission file number 001-18298 ____________________________ ...

Shares of Kemper (KMPR) have gained 0.8% over the past four weeks to close the last trading session at $60.73, but there could still be a solid upside left in the stock if short-term price targets of Wall Street analysts are any indication. Going by the price targets, the mean estimate of $76.60 indicates a potential upside of 26.1%. The average comprises five short-term price targets ranging from a low of $71 to a high of $85, with a standard deviation of $5.86. While the lowest estimate indicates an incre ...

Momentum investing revolves around the idea of following a stock's recent trend in either direction. In the 'long' context, investors will be essentially be "buying high, but hoping to sell even higher." With this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving that way. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades. While many investors like to look for momen ...

The notes offered as part of the term debt securitization have not been and will not be registered under the Securities Act of 1933, as amended (the "Securities Act"), or any state "blue sky" laws, and may not be offered or sold in the United States absent registration under Section 5 of the Securities Act or an applicable exemption from such registration requirements. The CLO is a form of secured financing incurred and consolidated by PSSL. This press release shall not constitute an offer to sell or a soli ...

Core Viewpoint - Kemper (KMPR) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive trend in earnings estimates which is a significant factor influencing stock prices [1][2][10] Earnings Estimates and Stock Price Movement - The Zacks rating system is based on changes in earnings estimates, which are strongly correlated with near-term stock price movements [3][5] - Institutional investors utilize earnings estimates to determine the fair value of stocks, leading to price movements based on their buying or selling actions [3] Company Performance and Outlook - The upgrade for Kemper reflects an improvement in the company's underlying business, suggesting that investor sentiment may drive the stock price higher [4] - Analysts have raised their earnings estimates for Kemper, with a projected earnings per share of $4.50 for the fiscal year ending December 2024, representing a year-over-year increase of 708.1% [7] Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a strong historical performance, particularly for Zacks Rank 1 stocks which have averaged a +25% annual return since 1988 [6][8] - Only the top 20% of Zacks-covered stocks receive a 'Strong Buy' or 'Buy' rating, indicating superior earnings estimate revisions and potential for market-beating returns [8]

Momentum investing revolves around the idea of following a stock's recent trend in either direction. In the 'long' context, investors will be essentially be "buying high, but hoping to sell even higher." With this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving that way. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.Even though momentum is a popular stock char ...