Kemper
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Insurance Insider US runs you through the earnings results for the day.
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The firm does not expect reserve developments for its auto operations in Q4.
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Kemper’s current results and historical trends suggest continued difficulty and remains a TBD story.
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As the market hardens, Kemper plans to “open the filters and see what comes through” as another quarter of rate earns in, CEO Joseph Lacher told analysts on Monday.
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The Inside P&C news team runs you through the earnings results for the day.
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Inside P&C’s morning summary of the key stories to get you up to speed fast.
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The company expects a net loss of between $140mn-$150mn for the quarter and a net operating loss in the range of $25mn-$35mn.
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Allstate’s underperformance in results and value creation may be an opportunity for activist investor Trian, but history suggests it will have its work cut out.
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In his stead, the company has named Bradley Camden as interim CFO and initiated a formal search process as part of the selection of a permanent CFO.
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In tandem, the carrier initiated a formal search process as part of the selection of a permanent CFO.
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The affirmations reflect Kemper’s recent rate increases in California and its exit of the preferred home and auto insurance market to redeploy capital to the carrier’s core segments.
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Inside P&C’s morning summary of the key stories to get you up to speed fast.
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The segment will now be a non-core part of the business and will no longer be reflected in future reporting, Lacher told analysts on the carrier’s Q2 earnings call on Monday.
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The Inside P&C news team runs you through the earnings results for the day.
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All policies will be non-renewed or canceled in accordance with state regulations, according to an announcement released ahead of the company’s Q2 earnings call on Monday.
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The company also expects to record an after-tax goodwill impairment charge of approximately $45.5mn following a strategic review of its personal insurance business.
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However, the carrier reiterated its prior guidance of a return to underwriting profitability In H2 2023 with a 2024 financial target of achieving 10%+ in full year RoE.
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The auto insurer’s results were adversely impacted by prior-year claim reserve additions and catastrophes.
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CEO Joe Lacher projected that the company will be profitable in the first half of the year and produce an underwriting profit in the second half.
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Five auto insurers receive approval to raise rates after 32-month halt by the California Department of Insurance.
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The insurer estimated a 109% combined ratio for Kemper Auto in Q4, which included $7mn of adverse legal cost development for the first three quarters of last year.
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The sell-off was one of the carrier’s “strategic initiatives” to focus on core capabilities as the company navigates a challenging environment for personal line businesses.
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Inside P&C’s morning summary of the key stories to get you up to speed fast.
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The CEO added that the company has also established an offshore captive and is in the process of creating a reciprocal exchange.
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The company said longer term impacts of the pandemic, primarily significant prolonged inflation, have led to lower volumes of policies in force.
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A challenging legal atmosphere and drift in loss cost components add difficulty to the task of tallying ultimate losses.
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The ratings agency revised its outlook for the Chicago-based group to stable from negative.
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Rate actions during the quarter was better than expected, said CEO Joseph Lacher.
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The sector was hit by a rough first half of 2022, with more to come in the second half of the year.
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Insurers could face pressure if interest rate and recession fears intersect with worsening loss cost trends.
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Inside P&C’s morning summary of the key stories to get you up to speed fast.
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The compensation was approved with 27,589,199 votes but faced 23,492,314 votes against and 155,686 abstentions.
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Management highlighted inflationary pressures as a key driver in loss cost trends, as the company takes rate to improve the combined ratio.
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March’s CPI report shows elevated inflation levels, including vehicle CPI of 10.5% and average used car price increase of 24.7%.
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Inside P&C’s news team runs you through the key developments from the past week.
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Jason Gorevic will step into the role following David Storch’s retirement in May following a 12-year tenure.
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The firm is an outlier on the negative side both in its state mix and the speed of its rating actions.
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Inside P&C’s morning summary of the key stories to get you up to speed fast.
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The change in outlook comes after Kemper reported a $257mn UW loss for Q4, its third straight significant negative underwriting result.
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Investors were reacting to the $257mn underwriting loss the company reported for Q4, and concerns the carrier’s rate increases are lagging the rise in claims severity trends.
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Inside P&C’s morning summary of the key stories to get you up to speed fast.
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The chief executive said a surge in costs for labor, auto body repairs and rental cars, along with the lagged effect of earned rate increases, all weighed on Kemper’s results.
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In contrast to the second and third quarters, when Kemper took $81mn and $25mn reserve charges, the fourth quarter loss came from a spike in severity on current AY claims.
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The latest report shows even higher inflation pushing up severity, forcing carriers to take rate.
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The Inside P&C research team looks forward to the big issues of the new year.
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The monthly CPI report shows that inflation continues to push severity higher as carriers take rate in response.
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The pandemic’s reopening caused rapid increases in auto frequency and global disruptions in supply chains, leading to “disappointing” results, Kemper’s CFO said.
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Kemper’s specialty P&C loss ratio spikes, driven by legal developments and increased severity in personal injury protection coverage in Florida.
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The carrier also anticipates that Florida personal injury protection claims will exceed its historical expectations.
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Ida soaks the tri-state – and has the potential to affect personal auto carriers more than comparable storms of the past.
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The Inside P&C Select Index outperformed the S&P 500 (5.7% to 2.9%) in August, despite Hurricane Ida making landfall.
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The Chicago-based specialty company saw its combined ratio to spike to 116.1%.
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Following strong year-to-date performance, P&C stocks were down in June after a change of tone in a Fed meeting.
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Personal auto carriers lowered rates in response to 2020’s loss cost trends, but chasing market share now could be a mistake.
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New CEOs were not able to consistently create higher book value growth than their predecessors, and any growth achieved wasn’t maintained after five years.
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Joe Lacher will take over as non-executive chairman of Kemper, adding to his existing roles of president and CEO.
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Kemper Insurance reported a 46% year-on-year dip in operating profits for the first quarter of 2021, as natural catastrophe claims weighed on the company’s results.
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While the direct channel has strengthened over the past year, Root has not grown auto PIF since Q1:20.