Q2 2024 Kemper Corp Earnings Call Transcript
Key Points
- Kemper Corp (KMPR) reported a fifth consecutive quarter of significant improvement in its underlying business.
- The company achieved a third straight quarter of generating operating profitability.
- Specialty auto business delivered a strong combined ratio well below the long-term target.
- Sequential quarter PIF growth of about 4.5% in specialty auto.
- Net income of $75 million and an ROE of about 11.5%, with an adjusted ROE of over 17%.
- The life segment was negatively impacted by a valuation adjustment on a real estate investment.
- The second half of 2024 is likely to produce PIF growth at a more modest rate due to seasonality.
- Net investment income was negatively impacted by a $15 million pretax valuation adjustment related to real estate investments.
- The company expects a drift back towards traditional combined ratios, which may impact profitability.
- The market environment remains volatile, influenced by factors such as supply chain-induced inflation and regulatory rate increases.
Good afternoon, ladies and gentlemen, and welcome to Kemper's second-quarter 2024 earnings conference call. My name is Ena and I will be your coordinator today. (Operator Instructions) As a reminder, this conference call is being recorded for replay purposes.
I would now like to introduce your host for today's conference call, Michael Marinaccio, Kemper's Vice President of Corporate Development and Investor Relations. Mr. Marinaccio, you may begin.
Thank you, operator. Good afternoon, everyone, and welcome to Kemper's discussion of our second-quarter 2024 results.
This afternoon, you'll hear from Joe Lacher, Kemper's President and Chief Executive Officer; Brad Camden, Kemper's Executive Vice President and Chief Financial Officer; and Matt Hunton, Kemper's Executive Vice President and President of Kemper Auto. We'll make a few opening remarks to provide context around our second-quarter results, followed by a Q&A session.
During the
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