Kemper(US:KMPR)2019-08-05 10:25Financial Performance - Total revenues for the six months ended June 30, 2019, were $2,511.7 million, a 75% increase from $1,434.9 million in the same period of 2018[20] - Earned premiums for the six months ended June 30, 2019, reached $2,191.4 million, up 73% from $1,267.9 million year-over-year[20] - Net income for the six months ended June 30, 2019, was $277.4 million, compared to $91.4 million in the same period of 2018, representing a 203% increase[21] - Income from continuing operations per unrestricted share (diluted) for the six months ended June 30, 2019, was $4.20, up from $1.75 in the same period of 2018[20] - Other comprehensive income for the six months ended June 30, 2019, was $255.1 million, compared to a loss of $143.0 million in the same period of 2018[21] - Total comprehensive income for the six months ended June 30, 2019, was $532.5 million, compared to a loss of $51.6 million in the same period of 2018[21] - Net income for the three months ended June 30, 2019, was $122.1 million, compared to $37.6 million for the same period in 2018, representing a significant increase of 225.5%[30] Investment Performance - Net investment income for the six months ended June 30, 2019, was $178.7 million, compared to $157.6 million in the same period of 2018, reflecting a 13% increase[20] - The company reported net realized gains on sales of investments of $37.4 million for the six months ended June 30, 2019, compared to $6.4 million in the same period of 2018[20] - The Company’s investments in fixed maturities at June 30, 2019, had an amortized cost of $6,074.6 million and a fair value of $6,540.2 million, reflecting unrealized gains of $482.7 million and losses of $17.1 million[46] - The fair value of corporate securities, including bonds and notes, was $3,598.4 million as of June 30, 2019, with unrealized gains of $320.8 million and losses of $7.7 million[46] - Investments in equity securities at fair value rose to $923.3 million as of June 30, 2019, compared to $684.4 million at December 31, 2018, reflecting a net unrealized gain of $85.8 million during the six months ended June 30, 2019[58] Assets and Liabilities - Total assets increased to $12,616.5 million as of June 30, 2019, up from $11,544.9 million at December 31, 2018, representing a growth of 9.3%[24] - Total investments rose to $8,840.9 million in June 2019, compared to $8,069.5 million in December 2018, reflecting an increase of 9.5%[24] - Shareholders' equity increased to $3,683.7 million as of June 30, 2019, up from $3,050.1 million at the end of 2018, indicating a growth of 20.7%[24] - The total long-term debt outstanding as of June 30, 2019, was $873.3 million, a decrease from $909.0 million as of December 31, 2018, representing a reduction of approximately 4.0%[71] Insurance Operations - Policyholders' benefits and incurred losses and loss adjustment expenses for the six months ended June 30, 2019, totaled $1,590.8 million, a 70% increase from $936.4 million in 2018[20] - The company incurred total losses and LAE of $1,384.8 million for the six months ended June 30, 2019, compared to $743.9 million in the same period of 2018[66] - The Specialty Property & Casualty Insurance segment earned premiums of $1,495.3 million for the six months ended June 30, 2019, compared to $598.4 million in 2018, marking an increase of about 149.8%[109] - The Preferred Property & Casualty Insurance segment's earned premiums for the six months ended June 30, 2019, were $374.1 million, compared to $357.9 million in 2018, showing a modest increase of about 4.5%[109] - The Life & Health Insurance segment earned premiums of $322.0 million for the six months ended June 30, 2019, slightly up from $311.6 million in 2018, reflecting a growth of approximately 3.5%[109] Stock and Equity - The company issued common stock resulting in net proceeds of $127.5 million during the six months ended June 30, 2019[28] - The company declared cash dividends of $0.25 per share, totaling $16.4 million for the quarter ended June 30, 2019[30] - The number of common shares outstanding increased from 64.9 million as of March 31, 2019, to 66.6 million as of June 30, 2019, an increase of 2.6%[30] - The weighted average unrestricted shares outstanding increased to 65,113.2 thousand for the six months ended June 30, 2019, from 51,526.6 thousand in 2018, marking a 26% increase[92] Accounting and Compliance - The company is currently evaluating the impact of new accounting guidance on its financial statements, including ASU 2016-13 related to credit losses[35][36] - The adoption of ASU 2016-02 resulted in the establishment of a right-of-use asset of $66.5 million and a lease liability of $82.5 million[33] - The company expects to recognize a loss on early extinguishment of debt of $5.8 million in its third quarter financial statements due to the redemption of $150.0 million of subordinated debentures[76] Legal and Contingencies - A final arbitration award of $84.3 million was granted to Kemper's subsidiary against Computer Sciences Corporation for breach of contract[136] - The Texas district court confirmed the Arbitration Award in favor of KCSI, entering judgment against CSC for a total amount of $141.7 million[138] - CSC has made partial payments of $35.7 million in September 2018 and $20.1 million in April 2019 towards the final judgment[139] - The unpaid balance of the final judgment is treated as a gain contingency and is not recognized in the financial statements[139]