Kemper(US:KMPR)2025-11-05 21:09Financial Performance - Total revenues for Q3 2025 were $1,239.7 million, an increase from $1,225.6 million in Q2 2025, and $1,193.0 million in Q3 2024, reflecting a year-over-year growth of 3.9%[7] - Earned premiums for Q3 2025 reached $1,133.3 million, slightly up from $1,130.8 million in Q2 2025 and significantly higher than $1,087.9 million in Q3 2024, indicating a year-over-year increase of 4.2%[7] - Net (loss) income attributable to Kemper Corporation for Q3 2025 was $(21.0) million, compared to a profit of $72.6 million in Q2 2025 and $99.7 million in Q3 2024, showing a significant decline[7] - Adjusted consolidated net operating income for Q3 2025 was $20.4 million, down from $84.1 million in Q2 2025 and $106.4 million in Q3 2024, reflecting a decrease of 75.8% year-over-year[7] - Total expenses for the three months ended September 30, 2025, were $1,272.8 million, an increase from $1,138.1 million in the prior quarter, marking an 11.8% rise[13] - The company reported a net loss attributable to Kemper Corporation of $21.0 million for the three months ended September 30, 2025, compared to a net income of $72.6 million in the previous quarter[29] - Adjusted Consolidated Net Operating Income for the three months ended September 30, 2025, was $20.4 million, a decrease from $105.0 million for the same period in 2024[65] Assets and Liabilities - Total assets as of September 30, 2025, were $12,443.4 million, a decrease from $12,601.1 million at the end of Q2 2025[11] - Total liabilities decreased to $9,721.8 million as of September 30, 2025, down from $10,102.6 million a year earlier, a reduction of 3.8%[17] - Total shareholders' equity was $2,721.6 million as of September 30, 2025, compared to $2,770.4 million a year prior, indicating a decline of 1.8%[17] - The debt to total capitalization ratio was 25.7% as of September 30, 2025, up from 24.2% in Q2 2025, suggesting an increase in leverage[11] - Long-term debt remained stable at approximately $943.1 million as of September 30, 2025, consistent with previous quarters[17] Investment Performance - Total investments as of September 30, 2025, amounted to $8,602.6 million, a decrease from $8,645.5 million at the end of the previous quarter[15] - Net investment income for the nine months ended September 30, 2025, was $301.9 million, slightly down from $304.5 million in the same period last year[49] - The company reported net realized investment gains of $3.9 million for the three months ended September 30, 2025, compared to a loss of $0.1 million in the previous quarter[49] - The company experienced a net realized investment loss of $4.7 million for the nine months ended September 30, 2025, compared to a loss of $9.2 million in the same period of 2024[19] Insurance Operations - Insurance reserves increased to $6,123.6 million as of September 30, 2025, compared to $5,900.0 million in Q2 2025, indicating a rise in claims reserves[11] - Policyholders' benefits and incurred losses for the three months ended September 30, 2025, were $924.6 million, compared to $829.1 million in the previous quarter, reflecting an increase of 11.5%[13] - The Combined Ratio for Q3 2025 was reported at 104.8%, compared to 95.4% in Q2 2025, showing a significant deterioration in underwriting performance[37] - Current Year Non-catastrophe Losses and LAE Ratio for Q3 2025 was 78.5%, up from 72.3% in Q2 2025, indicating higher loss costs[37] Shareholder Information - Book value per share decreased to $45.38 as of September 30, 2025, down from $46.45 in Q2 2025, indicating a decline in shareholder equity value[11] - Dividends paid to shareholders per share remained stable at $0.32 for Q3 2025, consistent with the previous quarter[11] - Cash Dividends Paid were $19.7 million, down from $20.8 million in the previous quarter, a decrease of 5.3%[23] - The return on shareholders' equity for Q3 2025 was (3.0)%, a significant drop from 9.9% in Q2 2025, reflecting poor financial performance[11] Operational Changes - The company launched a restructuring program in Q3 2025 aimed at achieving operational and organizational efficiencies, with ongoing evaluations through 2027[62] - The company aims to fully exit its Preferred Insurance business, which is classified under Non-Core Operations[62] Segment Performance - Specialty Property & Casualty Insurance earned premiums reached $1,017.3 million, compared to $1,010.8 million in the prior quarter, reflecting a growth of 0.5%[27] - Total Segment Adjusted Operating Income decreased to $30.0 million from $113.2 million in the previous quarter, representing a decline of 73.5%[29] - Net Premiums Written for Q3 2025 reached $982.2 million, a decrease from $1,001.5 million in Q2 2025[37] - Total Revenues for the Specialty Property & Casualty Insurance Segment reached $252.4 million in Q3 2025, compared to $206.8 million in Q3 2024, reflecting a 22.0% increase[41]