Kemper Corporation reported net income of $99.7 million, or $1.54 per diluted share, for the first quarter of 2025, up from $71.3 million, or $1.10 per diluted share, in the same period last year.
Adjusted consolidated net operating income totaled $106.4 million, or $1.65 per diluted share, compared to $69.7 million, or $1.07 per diluted share, in the first quarter of 2024.
The company highlighted continued improvement in operating performance and capital position during the quarter. Trailing 12-month operating cash flow reached $520 million. Return on equity (ROE) stood at 14%, while adjusted ROE was 21% for the period.
Kemper's specialty property and casualty segment posted 24% year-over-year premium growth and 14% growth in policies in force. The underlying combined ratio for the segment was 92% for the quarter. The life segment contributed operating income of $17 million and continued to deliver return on capital and distributable cash flow.
Parent company liquidity remained stable at approximately $1 billion. The company also reported an improvement in its debt-to-capital ratio to 22.9%, reflecting strengthened balance sheet flexibility.
President and CEO Joseph P. Lacher, Jr. (pictured above) said the company made progress in strengthening its capital and liquidity position, reducing its debt-to-capital ratio, and increasing operating cash flows.
Kemper Corporation reported a significant turnaround in its financial performance for the year 2024. The company achieved a net income of $317.8 million, or $4.91 per diluted share, compared to a net loss of $272.1 million, or $(4.25) per share, in 2023.
Adjusted consolidated net operating income also saw a substantial increase, reaching $381.5 million, or $5.89 per diluted share, up from a loss of $47.2 million, or $(0.74) per share, in the previous year.
Total revenues for 2024 amounted to $4.64 billion, representing a 6.2% decrease from the prior year. This decline was primarily due to the exit and run-off of the preferred insurance business, categorized under non-core operations. Despite the revenue drop, the company’s profitability improved, with a profit margin of 6.9%, a notable recovery from the net loss margin in 2023.
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