Kemper Boosts Premiums and Net Income, Benefiting From $1.3B Infinity Acquisition

April 29, 2019

Kemper Corp. reported a significant jump in net income during its 2019 first quarter, thanks largely to premium gains and a surge stemming from its acquisition of Infinity Property and Casualty Corp. Still, there were upticks in loss activity.

Kemper’s $1.3 billion acquisition of Infinity closed in July 2018.

The Chicago-based property/casualty insurance carrier said it produced $155.3 million in net income, or $2.35 per diluted share in Q1. That included a nearly $51 million after-tax gain stemming from the change in fair value of equity and convertible securities, the insurer said. A year ago, Kemper booked $53.8 million in net income, or $1.02 per diluted share.

Beyond gains from the acquisition, Kemper President and CEO Joseph Lacher Jr. credited the company’s business strategy as helping fuel its financial gains.

“Our focus on growing, niche and underserved markets and ability to meet the needs of our customers is driving growth in revenues and profitability,” Lacher said in prepared remarks.

The company said its consolidated earned premiums grew to $465 million during Q1, a 76 percent gain over the previous year. As well, its Specialty Property & Casualty Insurance segment saw earned premiums jump by nearly $451 million.

Here are result highlights:

Source: Kemper