Kemper Corporation Reports $317.8 Million Net Income for Fiscal Year 2024

Kemper Corporation reported a net income of $317.8 million, or $4.95 per share, for the fiscal year ending December 31, 2024, a significant recovery from a net loss of $272.1 million, or $(4.25) per share, in the previous year. The company's total revenues decreased by $305.6 million to $4.64 billion, primarily due to a reduction in earned premiums, which fell to $4.22 billion from $4.53 billion in 2023. This decline was largely attributed to a $263.7 million decrease from non-core operations, particularly the exit from the Preferred Insurance business, and a $56.1 million drop in the Specialty Property & Casualty Insurance segment.

In terms of operational metrics, Kemper's Specialty Property & Casualty Insurance segment saw net written premiums increase to $3.69 billion, up from $3.31 billion in 2023. The segment's earned premiums, however, decreased slightly to $3.58 billion. The company reported a notable improvement in its underlying loss and loss adjustment expense (LAE) ratio, which decreased to 70.3% from 82.0% in the previous year, reflecting better claims management and rate increases. The total incurred losses and LAE for the segment were $2.54 billion, down from $3.14 billion in 2023.

Strategically, Kemper established the Kemper Reciprocal, an Illinois-domiciled reciprocal insurance exchange, in the third quarter of 2023, which primarily writes specialty automobile policies. The exchange reported net written premiums of $27.6 million for 2024. The company also continued to focus on improving profitability through targeted actions, which included rate increases and adjustments in underwriting practices. As of December 31, 2024, Kemper employed approximately 7,400 associates and served over 4.7 million policies, with a significant portion of its business concentrated in California and Florida.

Looking ahead, Kemper's management expressed optimism about future performance, citing the potential for continued improvement in underwriting results and premium growth. However, they acknowledged ongoing challenges, including regulatory pressures and the unpredictable nature of catastrophe losses, which could impact financial results. The company remains committed to enhancing its operational efficiency and expanding its market presence while navigating the complexities of the insurance landscape.