Kemper(US:KMPR)2025-11-05 21:13Financial Performance - Total revenues for the three months ended September 30, 2025, were $1,239.7 million, an increase from $1,178.9 million for the same period in 2024, representing a growth of 5.2%[23] - Earned premiums for the nine months ended September 30, 2025, reached $3,352.0 million, compared to $3,134.1 million for the same period in 2024, reflecting a year-over-year increase of 7.0%[23] - Net (loss) income attributable to Kemper Corporation for the three months ended September 30, 2025, was $(21.0) million, a decrease from $73.7 million in the same period of 2024[23] - For the three months ended September 30, 2025, Kemper Corporation reported a net loss of $24.2 million, compared to a net income of $72.2 million for the same period in 2024[24] - Total comprehensive income for the nine months ended September 30, 2025, was $220.3 million, down from $325.1 million in the same period of 2024[24] - For the nine months ended September 30, 2025, the net income was $142.6 million, a decrease from $216.8 million for the same period in 2024, reflecting a decline of approximately 34.2%[39] Expenses and Losses - Total expenses for the three months ended September 30, 2025, were $1,272.8 million, compared to $1,088.2 million for the same period in 2024, marking an increase of 16.9%[23] - Policyholders' benefits and incurred losses and loss adjustment expenses for the three months ended September 30, 2025, were $924.6 million, up from $769.3 million in the same period of 2024, indicating a rise of 20.2%[23] - The company reported a net investment income of $104.8 million for the three months ended September 30, 2025, down from $111.1 million in the same period of 2024, a decline of 5.0%[23] - The company experienced a remeasurement loss related to the deferred profit liability within the Life insurance business of $0.9 million for the three months ended September 30, 2025[23] Assets and Liabilities - The company's total assets decreased to $12,443.4 million as of September 30, 2025, from $12,630.4 million at the end of 2024[27] - Insurance reserves increased to $6,123.6 million as of September 30, 2025, compared to $5,811.6 million at December 31, 2024, reflecting a growth of 5.3%[30] - Kemper's total investments decreased to $8,602.6 million as of September 30, 2025, from $8,888.5 million at December 31, 2024[27] - The company's long-term debt remained stable at approximately $943.1 million as of September 30, 2025, compared to $941.7 million at December 31, 2024[30] - Kemper Corporation's shareholders' equity decreased to $2,721.6 million as of September 30, 2025, from $2,784.3 million at the end of 2024[30] Shareholder Actions - Cash dividends paid to shareholders for the three months ended September 30, 2025, amounted to $19.7 million, with a dividend of $0.32 per share, compared to $20.3 million and $0.31 per share in the same period of 2024[38] - The number of common shares outstanding decreased from 64.4 million as of June 30, 2024, to 60.2 million as of September 30, 2025, representing a reduction of approximately 6.5%[39] - The company repurchased common stock totaling $218.8 million during the three months ended September 30, 2025, compared to $25.0 million in the same period of 2024[38] Regulatory and Competitive Environment - The company anticipates continued challenges in the regulatory environment and increased competition affecting future performance[12] - Kemper is focused on integrating acquired businesses and implementing significant operational changes to enhance efficiency and competitiveness[19] Investment Performance - The allowance for credit losses on fixed maturities increased to $15.7 million in 2025 from $10.7 million in 2024[27] - The company reported a comprehensive loss of $227.1 million as of September 30, 2025, compared to a comprehensive loss of $252.5 million as of September 30, 2024, indicating an improvement in overall financial health[39] - The total fixed maturities investments amounted to $4,939.1 million, with unrealized losses of $728.0 million, including $793.8 million in fair value for less than 12 months and $4,145.3 million for 12 months or longer[75] Taxation - For the three months ended September 30, 2025, the income tax benefit was $7.9 million, or 27.3% of income before income taxes, compared to an expense of $18.9 million, or 20.4% for the same period in 2024[186] - The company has no unrecognized tax benefits as of September 30, 2025, and no liabilities for accrued interest and penalties for the nine months ended September 30, 2025[187] Legal and Compliance - The company is involved in legal proceedings but does not believe any pending legal matters will materially affect its financial statements[189] - There have been no material changes to the company's disclosures about market risk since the 2024 Annual Report[316]