Kemper Corp, a specialized insurance provider, reported a net income of $75.4 million for the second quarter, a significant turnaround from a net loss of $97.1 million in the same period last year.
Joseph P Lacher Jr (pictured above), the company's president and CEO, noted that the auto segment's combined ratio was well below the company's long-term target. The segment also experienced a 4.6% increase in in-force policies compared to the first quarter of the year.
The specialty property/casualty operations posted an underlying combined ratio of 89.6, an improvement of 12 points from the previous year. The company attributed these gains to higher average earned premiums, driven by rate increases and a reduction in claims frequency.
However, the company's life operations reported a net operating loss of $200,000 during the quarter. This loss was primarily due to a decrease in net investment income, including an $11.9 million after-tax loss on a real estate holding within its alternative investment portfolio.
Total revenues for the second quarter decreased by $132.9 million, or 10.5%, to $1,129.9 million compared to the second quarter of 2023. This decline was mainly due to a $69.7 million decrease in the specialty property and casualty insurance segment, which resulted from lower new business volumes following targeted actions to improve profitability.
However, this was partially offset by higher average earned premiums per exposure due to rate increases. Additionally, there was a decrease in premiums from the Preferred Insurance business, following the decision to exit and run off the business in the third quarter of 2023.
Net premiums written in the specialty property and casualty insurance segment reached $933.9 million in the second quarter, compared to $830.6 million in the same period in 2023.
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