Kemper Corp.’s produced mostly stellar 2019 second-quarter results, highlighted by a continued boost from its July 2018 $1.3 billion acquisition of specialty auto insurer Infinity Property and Casualty Corp.
Kemper reported $122.1 million in net income for Q2, or $1.84 per diluted share. That compares to $37.6 million, or $0.73 per diluted share in the 2018 second quarter.
“Our results this quarter demonstrate meaningful gains in specialty auto, and continued stability in our life and health segment,” said Joseph P. Lacher, Jr., President and CEO.
One downbeat note: The insurer’s combined ratio for its Preferred Property & Casualty Insurance segment remained high, at 103.1, but it reflected an improvement over the 112.5 combined ratio generated over the same period a year ago.
Net investment income jumped to $96 million in Q2 2019, a jump of nearly $18 million over the previous year, thanks in part to the addition of Infinity’s investment portfolio, according to the company.
Here are some result highlights:
For Preferred Property & Casualty Insurance, total earned premiums hit $188.5 million during the quarter, compared to $181.1 million in the 2018 second quarter.
Specialty Property & Casualty Insurance total earned premiums were $766 million, versus $320 million in the same, year-ago period. That number factors in the Infinity acquisition, but Kemper said that higher policies in force also contributed solid gains.
The Preferred Property & Casualty Insurance arm reported non-catastrophe losses and loss adjusted expenses of $119 million during Q2, compared to $107.8 million in the 2018 second quarter. Catastrophe losses and LAE were at $22.6 million, down from $40.3 million a year ago.