Kemper Corp Q3 2024 10-Q Filing

TL;DR

Kemper's Q3 2024 10-Q is in. Financials look stable, insurance segments are key.

AI Summary

Kemper Corporation filed its 10-Q for the period ending September 30, 2024. The filing details financial performance and operational updates for the third quarter of 2024. Key financial data and segment information are presented, with a focus on insurance operations. The company's financial health and strategic positioning are outlined within the report.

Why It Matters

This filing provides investors with a detailed look at Kemper's financial performance and operational status for the third quarter of 2024, crucial for understanding the company's current health and future prospects.

Risk Assessment

Risk Level: medium — The filing is a standard quarterly report, but the insurance industry can be subject to significant regulatory and economic risks.

Key Numbers

• 2024-09-30 — Reporting Period End Date (Indicates the end of the financial quarter being reported.)
• 2024-10-30 — Filing Date (Shows when the report was officially submitted to the SEC.)
• 2024-07-01 — Q3 Start Date (Marks the beginning of the third quarter for financial reporting.)
• 2023-07-01 — Prior Year Q3 Start Date (Provides a comparative starting point for the previous year's third quarter.)
• 2024-01-01 — Year-to-Date Start Date (Indicates the beginning of the fiscal year for year-to-date reporting.)

Key Players & Entities

• KEMPER Corp (company) — Filer of the 10-Q
• 20240930 (date) — End of the reporting period
• 20241030 (date) — Filing date
• CHICAGO (location) — Company headquarters city
• DE (location) — State of incorporation

FAQ

Key Financial Figures

• $0.10 — ich registered Common Stock, par value $0.10 per share KMPR NYSE 5.875% Fixed-Rate

Filing Documents

• kmpr-20240930.htm (10-Q) — 3338KB
• kmpr202409302024ex311.htm (EX-31.1) — 8KB
• kmpr202409302024ex312.htm (EX-31.2) — 8KB
• kmpr202409302024ex321.htm (EX-32.1) — 6KB
• kmpr202409302024ex322.htm (EX-32.2) — 6KB
• 0000860748-24-000227.txt ( ) — 16557KB
• kmpr-20240930.xsd (EX-101.SCH) — 67KB
• kmpr-20240930_cal.xml (EX-101.CAL) — 112KB
• kmpr-20240930_def.xml (EX-101.DEF) — 501KB
• kmpr-20240930_lab.xml (EX-101.LAB) — 934KB
• kmpr-20240930_pre.xml (EX-101.PRE) — 715KB
• kmpr-20240930_htm.xml (XML) — 3740KB

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements Condensed Consolidated Statements of Income (Loss) for the Three and Nine Months Ended September 30, 2024 and 2023 (Unaudited) 4 Condensed Consolidated Statements of Comprehensive Income (Loss) for the Three and Nine Months Ended September 30, 2024 and 2023 (Unaudited) 5 Condensed Consolidated Balance Sheets as of September 30, 2024 and December 31, 2023 (Unaudited) 6 Condensed Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2024 and 2023 (Unaudited) 8 Condensed Consolidated Statements of Shareholders' Equity for the Three and Nine Months Ended September 30, 2024 and 2023 (Unaudited) 10 Notes to the Condensed Consolidated Financial Statements (Unaudited) 12

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 48

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 74

Controls and Procedures

Item 4. Controls and Procedures 74

OTHER INFORMATION

PART II. OTHER INFORMATION

Legal Proceedings

Item 1. Legal Proceedings 74

Risk Factors

Item 1A. Risk Factors 74

Unregister ed Sales of Equity Securities and Use of Proceeds and Issuer Repurchases of Equity Securities

Item 2. Unregister ed Sales of Equity Securities and Use of Proceeds and Issuer Repurchases of Equity Securities 74

Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

Item 5 Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 75

Exhibits

Item 6. Exhibits 76 Exhibit Index 76

Signatures

Signatures 77 Caution Regarding Forward-Looking Statements This Quarterly Report on Form 10-Q, including, but not limited to, Management's Discussion and Analysis of Financial Condition and Results of Operations ("MD&A"), Risk Factors and the accompanying unaudited Condensed Consolidated Financial Statements (including the notes thereto) of Kemper Corporation ("Kemper") and its subsidiaries (individually and collectively referred to herein as the "Company"), as well as a variable interest entity ("VIE") in which the Company is considered the primary beneficiary, may contain or incorporate by reference information that includes or is based on forward-looking statements within the meaning of the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements give expectations or forecasts of future events. The reader can identify these statements by the fact that they do not relate strictly to historical or current facts. They use words such as "believe(s)," "goal(s)," "target(s)," "estimate(s)," "anticipate(s)," "forecast(s)," "project(s)," "plan(s)," "intend(s)," "expect(s)," "might," "may," "could" and other terms of similar meaning. Forward-looking statements, in particular, include statements relating to future actions, prospective services or products, future performance or results of current and anticipated services or products, sales efforts, expenses, the outcome of contingencies such as legal proceedings, trends in operations and financial results. Any or all forward-looking statements may turn out to be wrong, and, accordingly, Kemper cautions readers not to place undue reliance on such statements. Kemper bases these statements on current expectations and the current economic environment as of the date of this Quarterly Report on Form 10-Q. They involve a number of risks and uncertainties that are difficult to predict. These statements are not guarantees of future performance, and actual results could differ

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements KEMPER CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS) (Dollars in millions, except per share amounts) (Unaudited) Three Months Ended Nine Months Ended Sep 30, 2024 Sep 30, 2023 Sep 30, 2024 Sep 30, 2023 Revenues: Earned Premiums (Changes in Deferred Profit Liability for the Three Months Ended: 2024 - $ 16.4 ; 2023 - $ 15.9 and Nine Months Ended: 2024 - $ 52.8 ; 2023 - $ 51.6 ) $ 1,068.5 $ 1,117.8 $ 3,134.1 $ 3,465.6 Net Investment Income 111.1 107.0 304.5 315.1 Change in Value of Alternative Energy Partnership Investments 0.5 0.8 1.5 2.3 Other Income 2.2 2.4 6.4 5.3 Change in Fair Value of Equity and Convertible Securities ( 2.3 ) 2.8 ( 0.1 ) 6.9 Net Realized Investment Gains (Losses) 1.1 ( 30.3 ) 9.2 ( 38.3 ) Impairment Losses ( 2.2 ) ( 1.1 ) ( 3.8 ) 0.1 Total Revenues 1,178.9 1,199.4 3,451.8 3,757.0 Expenses: Policyholders' Benefits and Incurred Losses and Loss Adjustment Expenses (Changes in Liability for Future Policyholder Benefits for the Three Months Ended: 2024 - $ 0.3 ; 2023 - $ 6.1 and Nine Months Ended: 2024 - $ 7.9 ; 2023 - $ 8.6 ) 769.3 975.2 2,269.7 3,011.9 Insurance Expenses 254.3 259.0 739.3 794.4 Interest and Other Expenses 64.6 156.0 173.6 311.7 Goodwill Impairment — — — 49.6 Total Expenses 1,088.2 1,390.2 3,182.6 4,167.6 Income (Loss) before Income Taxes 90.7 ( 190.8 ) 269.2 ( 410.6 ) Income Tax (Expense) Benefit ( 18.5 ) 44.4 ( 52.4 ) 87.0 Net Income (Loss) 72.2 ( 146.4 ) 216.8 ( 323.6 ) Less: Net Loss attributable to Noncontrolling Interest ( 1.5 ) ( 0.1 ) ( 3.6 ) ( 0.1 ) Net Income (Loss) attributable to Kemper Corporation $ 73.7 $ ( 146.3 ) $ 220.4 $ ( 323.5 ) Net Income (Loss) attributable to Kemper Corporation per Unrestricted Share: Basic $ 1.15 $ ( 2.28 ) $ 3.43 $ ( 5.05 ) Diluted $ 1.14 $ ( 2.28 ) $ 3.40 $ ( 5.05 ) The Notes to the Condensed Consolidated Financial Statements are an integral part of these financial statements. 4 KEMP

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View this 10-Q filing on SEC EDGAR