Kemper Corporation · NYSE:KMPR
Kemper — Q4 2024 Earnings Presentation
18 slides from Kemper's earnings presentation, Feb 5, 2025
Slide 1: Fourth Quarter 2024 Earnings
Fourth Quarter 2024 Earnings February 5, 2025 Earnings Call Presentation – 4Q 2024
Slide 2: Preliminary Matters
Preliminary Matters Cautionary Statements Regarding Forward-Looking Information This presentation 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 A
Slide 3: Leading Insurer Empowering Specialty and Underserved Markets
Leading Insurer Empowering Specialty and Underserved Markets Enabled by a dynamic, diverse and innovative team who act like owners Delivering appropriate and affordable insurance and financial solutions Specialty auto insurance1 for Life insurance2 for underserved markets; Latino, low/moderate incom
Slide 4: Fourth Quarter 2024 Summary
Fourth Quarter 2024 Summary Strong profitable growth continues Double-digit Return on Equity and BVPS accretion • 4Q’24 Net Income attributable to Kemper Corporation of $97.4 million or $1.51 per diluted share Shareholder Value • 4Q’24 Adjusted Consolidated Net Operating Income1 of $115.1 million or
Slide 5: Fourth Quarter 2024 Financial Summary
Fourth Quarter 2024 Financial Summary Delivered another quarter of strong financial results Quarter Ended Year Ended Dec 31, Dec 31, Dec 31, Dec 31, ($ in millions, except per share amounts) 2024 2023 2024 2023 Net Income (Loss) Per Diluted Share attributable to $1.51 $0.80 $4.91 $(4.25) Kemper Corp
Slide 6: Diversified Investment Portfolio with Consistent Returns
Diversified Investment Portfolio with Consistent Returns Net Investment Income1 Highlights • High-quality portfolio provides consistent ($ in millions) $111 $105 $93 $103 $100 $10 net investment income; 71% of fixed income $7 $1 $4 portfolio rated A or higher • 4.4% pre-tax equivalent (PTE) annualiz
Slide 7: Well-Capitalized Insurance Subsidiaries
Well-Capitalized Insurance Subsidiaries Balance sheet continued to strengthen, enhancing financial flexibility Parent Company Liquidity Risk-Based Capital Ratios¹ HoldCo Cash & Investments Life2 Borrowings Available P&C (ex. AACC) Under Credit Agreement & from Subs $1,433 $1,336 $1,348 (%) $1,148 ($
Slide 8: 2025 Reinsurance Program
2025 Reinsurance Program Renewed Catastrophe XoL Reinsurance Catastrophe Reinsurance Program Highlights Catastrophe Excess of Loss Program (XOL): 5% co-participation 1-Year Term • One year program consists of two layers: Layer 2: Placed 1/1/25 – $60 million excess $50 million $65M xs $110M 95% Place
Slide 9: Specialty Property & Casualty Insurance Segment
Specialty Property & Casualty Insurance Segment Delivered strong margins and PIF growth Highlights Sequential Quarter Growth3 • Underlying Combined Ratio of 91.7% 4Q'24 TTM % of QoQ – Private Passenger Auto: 91.4% DWP DWP PIF Growth – Commercial Auto: 93.0% Private Passenger Auto California $ 1,875
Slide 10: Life Insurance Segment
Life Insurance Segment Business trends remained stable Highlights • Inflation continues to disproportionately pressure low-to-moderate income consumers – Premiums relatively flat to prior-year; lapse performance in-line with historical trends • Mortality modestly favorable to historical experience1
Slide 11: Key Takeaways
Key Takeaways Specialty P&C • Delivered strong operating results and underlying combined ratio • Solid PIF growth with 4Q’24 outperforming traditional seasonal levels • Focusing on continued profitable growth Life • Business fundamentals remain stable and continue to generate strong returns on capit
Slide 12: Appendix
Appendix Earnings Call Presentation – 4Q 2024 12
Slide 13: Non-GAAP Financial Measures
Non-GAAP Financial Measures Adjusted Consolidated Net Operating Income (Loss) is an after-tax, non-GAAP financial measure and is computed by excluding from Net Income (Loss) attributable to Kemper Corporation the after-tax impact of: (i) Change in Fair Value of Equity and Convertible Securities; (ii
Slide 14: Non-GAAP Financial Measures
Non-GAAP Financial Measures Return on Adjusted Shareholders’ Equity is a calculation that uses a non-GAAP financial measure. It is calculated by dividing the period’s net income attributable to Kemper Corporation by the average shareholders’ equity excluding net unrealized gains and losses on fixed
Slide 15: Non-GAAP Financial Measures
Non-GAAP Financial Measures Adjusted Consolidated Net Operating Income (Loss) attributable to Kemper Corporation Three Months Ended Year Ended ($ in millions) Dec 31, 2024 Dec 31, 2023 Dec 31, 2024 Dec 31, 2023 Net Income (Loss) attributable to Kemper Corporation $97.4 $51.4 $317.8 $(272.1) Less
Slide 16: Non-GAAP Financial Measures
Non-GAAP Financial Measures Return on Adjusted Shareholders’ Equity Three Months Ended Year Ended ($ in millions) Dec 31, 2024 Dec 31, 2023 Dec 31, 2024 Dec 31, 2023 Annualized Net Income (Loss) attributable to Kemper $389.6 $205.6 $317.8 $(272.1) Corporation Average Shareholders’ Equity1 $2,780.
Slide 17: Non-GAAP Financial Measures
Non-GAAP Financial Measures Adjusted Book Value Per Share As of ($ and shares in millions except per share amounts) Dec 31, 2024 Dec 31, 2023 Kemper Corporation Shareholders’ Equity $2,788.4 $2,505.2 Less: Net Unrealized Losses on Fixed Maturities 696.5 533.8 Less: Change in Discount Rate on Futur
Slide 18: Non-GAAP Financial Measures
Non-GAAP Financial Measures Underlying Combined Ratio Three Months Ended 4Q’24 3Q’24 2Q’24 1Q’24 4Q'23 Specialty P&C Insurance Combined Ratio as Reported 92.1% 91.7% 90.7% 94.8% 98.5% Current Year Catastrophe Losses and LAE Ratio (0.2) (0.4) (1.2) (0.5) (0.3) Prior Years Non-Catastrophe Losses and L