Kemper Corp’s Q3 net income dipped slightly, though that decline would have been worse if not for after-tax gains in assessments and investments.

The company reported $122.3 million in net income during the 2020 third quarter, or $1.83 per diluted share, versus $129 million, or $1 Q.91 per diluted share, in Q3 2019. Net income included a $35.7 million after-tax gain the company said came from “the change in fair value of equity and convertible securities.”

Kemper’s specialty property/casualty insurance segment booked an 86.3 combined ratio in Q3, better than the 91.6 combined ratio produced the year before. The insurer said this reflected, in part, “favorable short-term related pandemic frequency.”

Net investment income surpassed $92 million during the quarter, essentially flat compared to the previous year.

Here are result highlights:

  • Consolidated net earned premiums hit $1.2 billion during the quarter, versus $1.1 billion in Q3 2019.
  • Specialty P/C earned premiums jumped 11 percent, or $88 million compared to the previous year. Higher premium volume helped shape the trend.
  • Specialty Insurance net operating income reached $119.2 million in Q3, versus $78.5 million in the 2019 third quarter. More premium volume helped, as did an improvement in underlying losses.
  • Preferred Property/Casualty booked a $32.7 million net operating loss during the quarter, compared to $21.1 million in net operating income in the 2019 third quarter. The result deteriorated due mostly to catastrophe losses and loss adjusted expenses, though underlying losses improved somewhat.
  • Life & Health produced $12.2 million in net operating income in Q3, down from $33.4 million a year ago./ Kemper blamed the decline on higher COVID-19-related mortality “in line with country-wide trends.”

Source: Kemper