Kemper Corp. is celebrating a boost in net income for the second quarter thanks to “significant growth” in its personal automobile division, a few weeks after closing its recent $1.3 billion acquisition of Infinity Property & Casualty.
The Chicago-based insurer produced $37.6 million in net income during the period, or $0.73 per diluted share. In the 2017 second quarter, Kemper reported $36.5 million in net income, or $0.70 per diluted share.
Investment income was booked at $78.4 million, up from $77.1 million in the 2017 second quarter. Kemper’s property/casualty combined ratio was 101 for Q2, compared to nearly 104 in the 2017 third quarter. Its underlying combined ratio hit 92, down from 94.2 over the same period a year ago.
Kemper’s results come just a few weeks after closing its $1.3 billion cash and stock acquisition of Infinity on July 2. Lacher said that the M&A deal contributes to a long-gestating growth strategy that is starting to reach fruition.
“We’ve achieved steady, quarter-over-quarter growth that demonstrates the value of Kemper’s strategy of building strength in core businesses which focus on growing niche and underserved markets,” Lacher said in prepared remarks. “Our recent acquisition of Infinity is an important milestone in accelerating our position in one of these businesses – to become the premiere specialty auto franchise.”
Among the result highlights:
- Consolidated earned premiums reached $658.1 million during the quarter, compared to $582.5 million in the 2017 second quarter.
- Personal automobile earned premiums were at $416.2 million, versus $339.1 million in the 2017 second quarter.
- Commercial automobile produced $12.5 million in earned premiums during the quarter, compared to $12.7 million in Q2 2017.
- Homeowners insurance produced $62.2 million in earned premiums for the quarter. Over the same period a year ago, the number was at $66.6 million.
- Total Life & Health Insurance premiums reached $212 million during the quarter, up from $208.8 million in the 2017 second quarter.