KEMPER CORPORATION Exhibit 99.2
Investor Supplement
Second Quarter 2021
The financial statements and financial exhibits included herein are unaudited. These financial statements and exhibits should be read in conjunction with the Company's periodic reports on Forms 10-K,10-Q and 8-K filed with the U.S. Securities and Exchange Commission (the "SEC"). The results of operations for interim periods should not be considered indicative of results to be expected for the full year.
Non-GAAP Financial Measures
This document contains non-GAAP financial measures to analyze the Company's operating performance for the periods presented. Because the Company's calculation of these measures may differ from similar measures used by other companies, investors should be careful when comparing the Company's non-GAAP financial measures to those of other companies. For detailed disclosures on non-GAAP financial measures please refer to the "Definitions of Non-GAAP Financial Measures" on Page 34.
Caution Regarding Forward-Looking Statements
This Investor Supplement may contain or incorporate by reference information that includes or is based on forward-looking statements within the meaning of the safe- harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements give expectations or forecasts of future events and can be identified by the fact that they relate to future actions, performance or results rather than strictly to historical or current facts.
Any or all forward-looking statements may turn out to be wrong, and, accordingly, readers are cautioned not to place undue reliance on such statements, which speak only as of the date this Investor Supplement was included as an exhibit to the Company's Current Report on Form 8-K.Forward-looking statements involve a number of risks and uncertainties that are difficult to predict and are not guarantees of future performance. Among the general factors that could cause actual results and financial condition to differ materially from estimated results and financial condition are those factors listed in periodic reports filed by Kemper Corporation with the SEC. The COVID-19 outbreak and subsequent global pandemic ("Pandemic") is an extraordinary event that creates unique uncertainties and risks. Kemper cannot provide any assurances as to the impacts of the Pandemic and related economic conditions on the Company's operating and financial results.
No assurances can be given that the results and financial condition contemplated in any forward-looking statements will be achieved or will be achieved in any particular timetable. Kemper assumes no obligation to publicly correct or update any forward-looking statements as a result of events or developments subsequent to the date of this Investor Supplement, including any such statements related to the Pandemic. The reader is advised, however, to consult any further disclosures Kemper makes on related subjects in its filings with the SEC.
Kemper Corporation | |
Investor Supplement | |
Second Quarter 2021 | |
Table of Contents | |
Page | |
Consolidated Financial Highlights.......................................................................................................................................................................................................... | 3 |
Consolidated Statements of Income..................................................................................................................................................................................................... | 4 |
Consolidated Balance Sheets................................................................................................................................................................................................................. | 5 |
Consolidated Statements of Cash Flows................................................................................................................................................................................................ | 6-7 |
Capital Metrics....................................................................................................................................................................................................................................... | 8-9 |
Debt Outstanding, FHLB Advances and Ratings.................................................................................................................................................................................... | 10 |
Segment Summary Results: | |
Revenues............................................................................................................................................................................................................................................. | 11 |
Operating Income............................................................................................................................................................................................................................... | 12 |
Net Operating Income......................................................................................................................................................................................................................... | 12 |
Catastrophe Frequency and Severity.................................................................................................................................................................................................. | 13 |
Specialty Property & Casualty Insurance Segment - Results of Operations and Selected Financial Information | 14-15 |
Specialty Personal Automobile Insurance........................................................................................................................................................................................... | 16 |
Commercial Automobile Insurance..................................................................................................................................................................................................... | 17 |
Preferred Property & Casualty Insurance Segment - Results of Operations and Selected Financial Information............................................................................... | 18-19 |
Preferred Personal Automobile Insurance......................................................................................................................................................................................... | 20 |
Homeowners and Other Personal Insurance...................................................................................................................................................................................... | 21 |
Homeowners Insurance...................................................................................................................................................................................................................... | 22 |
Other Personal Insurance.................................................................................................................................................................................................................... | 23 |
Life & Health Insurance Segment - Results of Operations and Selected Financial Information........................................................................................................... | 24 |
Life Insurance...................................................................................................................................................................................................................................... | 25 |
Accident and Health Insurance........................................................................................................................................................................................................... | 25 |
Property Insurance.............................................................................................................................................................................................................................. | 26 |
Expenses................................................................................................................................................................................................................................................ | 27 |
Details of Investment Performance....................................................................................................................................................................................................... | 28 |
Details of Invested Assets...................................................................................................................................................................................................................... | 29-30 |
Investment Concentration..................................................................................................................................................................................................................... | 31 |
Municipal Bond Securities..................................................................................................................................................................................................................... | 32 |
Investments in Limited Liability Companies and Limited Partnerships................................................................................................................................................. | 33 |
Definitions of Non-GAAPFinancial Measures....................................................................................................................................................................................... | 34-35 |
As Adjusted for Acquisition.................................................................................................................................................................................................................... | 36-39 |
Kemper Corporation
Consolidated Financial Highlights
(Dollars in Millions, Except Per Share Amounts)
(Unaudited)
Three Month Ended | Six Months Ended | ||||||||||||||||||||||
Jun 30, | Mar 31, | Dec 31, | Sep 30, | Jun 30, | Mar 31, | Jun 30, | Jun 30, | ||||||||||||||||
2021 | 2021 | 2020 | 2020 | 2020 | 2020 | 2021 | 2020 | ||||||||||||||||
For Period Ended | |||||||||||||||||||||||
Earned Premiums........................................................................................................................ | $ | 1,337.7 | $ | 1,200.8 | $ | 1,214.0 | $ | 1,206.5 | $ | 1,085.3 | $ | 1,166.4 | $ | 2,538.5 | $ | 2,251.7 | |||||||
Net Investment Income.............................................................................................................. | 113.9 | 103.1 | 102.7 | 92.1 | 67.8 | 85.6 | 217.0 | 153.4 | |||||||||||||||
Change in Value of Alternative Energy Partnership Investments.............................................. | (7.7) | (15.4) | - | - | - | - | (23.1) | - | |||||||||||||||
Other Income.............................................................................................................................. | 7.0 | 1.5 | 1.9 | 0.9 | 1.5 | 90.3 | 8.5 | 91.8 | |||||||||||||||
Income (Loss) from Change in Fair Value of Equity and Convertible Securities......................... | 40.8 | 52.2 | 73.1 | 45.2 | 71.6 | (117.8) | 93.0 | (46.2) | |||||||||||||||
Net Investment Gains (Loss)....................................................................................................... | 16.0 | 9.8 | 0.4 | 9.0 | 4.7 | 4.5 | 25.8 | 9.2 | |||||||||||||||
Total Revenues............................................................................................................................ | $ | 1,507.7 | $ | 1,352.0 | $ | 1,392.1 | $ | 1,353.7 | $ | 1,230.9 | $ | 1,229.0 | $ | 2,859.7 | $ | 2,459.9 | |||||||
Net Income................................................................................................................................. | $ | (62.6) | $ | 123.2 | $ | 97.5 | $ | 122.3 | $ | 126.1 | $ | 64.0 | $ | 60.6 | $ | 190.1 | |||||||
Adjusted Consolidated Net Operating Income (Loss) 1.............................................................. | $ | (99.4) | $ | 87.2 | $ | 105.8 | $ | 90.9 | $ | 79.2 | $ | 162.9 | $ | (12.2) | $ | 242.1 | |||||||
Per Unrestricted Common Share Amounts: | |||||||||||||||||||||||
Basic: | |||||||||||||||||||||||
Net Income............................................................................................................................ | $ | (0.97) | $ | 1.88 | $ | 1.49 | $ | 1.87 | $ | 1.93 | $ | 0.96 | $ | 0.93 | $ | 2.88 | |||||||
Adjusted Consolidated Net Operating Income (Loss) 1......................................................... | $ | (1.54) | $ | 1.33 | $ | 1.62 | $ | 1.39 | $ | 1.21 | $ | 2.45 | $ | (0.19) | $ | 3.67 | |||||||
Diluted: | |||||||||||||||||||||||
Net Income ........................................................................................................................... | $ | (0.97) | $ | 1.85 | $ | 1.46 | $ | 1.83 | $ | 1.91 | $ | 0.95 | $ | 0.92 | $ | 2.85 | |||||||
Adjusted Consolidated Net Operating Income (Loss) 1......................................................... | $ | (1.54) | $ | 1.31 | $ | 1.59 | $ | 1.36 | $ | 1.20 | $ | 2.43 | $ | (0.19) | $ | 3.63 | |||||||
Dividends Paid to Shareholders Per Share................................................................................. | $ | 0.31 | $ | 0.31 | $ | 0.30 | $ | 0.30 | $ | 0.30 | $ | 0.30 | $ | 0.62 | $ | 0.60 | |||||||
At Period End | |||||||||||||||||||||||
Total Assets................................................................................................................................. | $ | 14,950.7 | $ | 14,203.7 | $ | 14,341.9 | $ | 14,090.4 | $ | 13,489.4 | $ | 12,932.3 | |||||||||||
Insurance Reserves..................................................................................................................... | $ | 5,982.4 | $ | 5,541.1 | $ | 5,510.0 | $ | 5,461.5 | $ | 5,375.0 | $ | 5,442.4 | |||||||||||
Debt............................................................................................................................................ | $ | 1,122.3 | $ | 1,122.6 | $ | 1,172.8 | $ | 1,173.0 | $ | 777.7 | $ | 778.1 | |||||||||||
Shareholders' Equity................................................................................................................... | $ | 4,306.2 | $ | 4,339.1 | $ | 4,563.4 | $ | 4,347.5 | $ | 4,187.9 | $ | 3,760.8 | |||||||||||
Shareholders' Equity Excluding Goodwill1,2................................................................................ | $ | 2,994.3 | $ | 3,225.1 | $ | 3,449.4 | $ | 3,233.5 | $ | 3,073.9 | $ | 2,646.8 | |||||||||||
Common Shares Issued and Outstanding (In Millions)............................................................... | 63.636 | 65.016 | 65.436 | 65.406 | 65.282 | 65.365 | |||||||||||||||||
Book Value Per Share2................................................................................................................ | $ | 67.67 | $ | 66.74 | $ | 69.74 | $ | 66.47 | $ | 64.15 | $ | 57.54 | |||||||||||
Book Value Per Share Excluding Goodwill1,2............................................................................... | $ | 47.05 | $ | 49.60 | $ | 52.71 | $ | 49.44 | $ | 47.09 | $ | 40.49 | |||||||||||
Book Value Per Share Excluding Net Unrealized Gains on Fixed Maturities1,2........................... | $ | 58.39 | $ | 60.00 | $ | 58.67 | $ | 56.63 | $ | 55.13 | $ | 53.53 | |||||||||||
Book Value Per Share Excluding Net Unrealized Gains on Fixed Maturities and Goodwill1,2.... | $ | 37.77 | $ | 42.87 | $ | 41.65 | $ | 39.60 | $ | 38.07 | $ | 36.49 | |||||||||||
Debt to Total Capitalization2....................................................................................................... | 20.7 % | 20.6 % | 20.4 % | 21.2 % | 15.7 % | 17.1 % | |||||||||||||||||
Rolling 12 Months Return on 5-point Average Shareholders Equity2,3...................................... | 6.4 % | 11.1 % | 9.8 % | 10.8 % | 11.4 % | 11.8 % |
- Non-GAAPFinancial Measure. See page 34 for definition.
2 See Capital Metrics on pages 8-9 for detail calculations.
- Rolling 12 Months Return on 5-point Average Shareholders Equity is calculated by taking the last 12 months of Net Income (Loss) divided by the 5-point average Shareholders' Equity. The 5-point Average Shareholders' Equity is calculated by using a 5-point quarter average of Shareholders' Equity for the 12 month period.
3
Kemper Corporation
Consolidated Statements of Income
(Dollars in Millions, Except Per Share Amounts)
(Unaudited)
Three months ended | Six Months Ended | |||||||||||||||||||||||
Jun 30, | Mar 31, | Dec 31, | Sep 30, | Jun 30, | Mar 31, | Jun 30, | Jun 30, | |||||||||||||||||
2021 | 2021 | 2020 | 2020 | 2020 | 2020 | 2021 | 2020 | |||||||||||||||||
Revenues: | ||||||||||||||||||||||||
Earned Premiums........................................................................................................................ | $ | 1,337.7 | $ | 1,200.8 | $ | 1,214.0 | $ | 1,206.5 | $ | 1,085.3 | $ | 1,166.4 | $ | 2,538.5 | $ | 2,251.7 | ||||||||
Net Investment Income.............................................................................................................. | 113.9 | 103.1 | 102.7 | 92.1 | 67.8 | 85.6 | 217.0 | 153.4 | ||||||||||||||||
Change in Value of Alternative Energy Partnership Investments.............................................. | (7.7) | (15.4) | - | - | - | - | (23.1) | - | ||||||||||||||||
Other Income.............................................................................................................................. | 7.0 | 1.5 | 1.9 | 0.9 | 1.5 | 90.3 | 8.5 | 91.8 | ||||||||||||||||
Income (Loss) from Change in Fair Value of Equity and Convertible Securities......................... | 40.8 | 52.2 | 73.1 | 45.2 | 71.6 | (117.8) | 93.0 | (46.2) | ||||||||||||||||
Net Realized Gains on Sales of Investments............................................................................... | 19.2 | 13.8 | (0.1) | 10.0 | 11.7 | 16.5 | 33.0 | 28.2 | ||||||||||||||||
Impairment Losses...................................................................................................................... | (3.2) | (4.0) | 0.5 | (1.0) | (7.0) | (12.0) | (7.2) | (19.0) | ||||||||||||||||
............................................................................................................................Total Revenues | 1,507.7 | 1,352.0 | 1,392.1 | 1,353.7 | 1,230.9 | 1,229.0 | 2,859.7 | 2,459.9 | ||||||||||||||||
Expenses: | ||||||||||||||||||||||||
Policyholders' Benefits and Incurred Losses and Loss Adjustment Expenses............................ | 1,224.1 | 889.5 | 863.4 | 877.5 | 747.5 | 835.2 | 2,113.6 | 1,582.7 | ||||||||||||||||
Insurance Expenses..................................................................................................................... | 314.0 | 283.7 | 279.3 | 276.9 | 272.7 | 271.6 | 597.7 | 544.3 | ||||||||||||||||
Interest and Other Expenses...................................................................................................... | 59.3 | 57.2 | 128.8 | 47.2 | 51.0 | 44.5 | 116.5 | 95.5 | ||||||||||||||||
............................................................................................................................Total Expenses | 1,597.4 | 1,230.4 | 1,271.5 | 1,201.6 | 1,071.2 | 1,151.3 | 2,827.8 | 2,222.5 | ||||||||||||||||
Income before Income Taxes..................................................................................................... | (89.7) | 121.6 | 120.6 | 152.1 | 159.7 | 77.7 | 31.9 | 237.4 | ||||||||||||||||
Income Tax Benefit (Expense).................................................................................................... | 27.1 | 1.6 | (23.1) | (29.8) | (33.6) | (13.7) | 28.7 | (47.3) | ||||||||||||||||
................................................................................................................................Net Income | $ | (62.6) | $ | 123.2 | $ | 97.5 | $ | 122.3 | $ | 126.1 | $ | 64.0 | $ | 60.6 | $ | 190.1 | ||||||||
Income Per Unrestricted Share: | ||||||||||||||||||||||||
Basic............................................................................................................................................ | $ | (0.97) | $ | 1.88 | $ | 1.49 | $ | 1.87 | $ | 1.93 | $ | 0.96 | $ | 0.93 | $ | 2.88 | ||||||||
Diluted | ||||||||||||||||||||||||
$ | (0.97) | $ | 1.85 | $ | 1.46 | $ | 1.83 | $ | 1.91 | $ | 0.95 | $ | 0.92 | $ | 2.85 | |||||||||
Net Income Per Unrestricted Share: | ||||||||||||||||||||||||
Basic............................................................................................................................................ | $ | (0.97) | $ | 1.88 | $ | 1.49 | $ | 1.87 | $ | 1.93 | $ | 0.96 | $ | 0.93 | $ | 2.88 | ||||||||
.........................................................................................................................................Diluted | $ | (0.97) | $ | 1.85 | $ | 1.46 | $ | 1.83 | $ | 1.91 | $ | 0.95 | $ | 0.92 | $ | 2.85 | ||||||||
Dividends Paid to Shareholders Per Share | ||||||||||||||||||||||||
$ | 0.31 | $ | 0.31 | $ | 0.30 | $ | 0.30 | $ | 0.30 | $ | 0.30 | $ | 0.62 | $ | 0.60 | |||||||||
Weighted Average Unrestricted Common Shares Outstanding (in Millions).......................... | 64.377 | 65.425 | 65.414 | 65.363 | 65.258 | 66.516 | 64.898 | 65.887 | ||||||||||||||||
4
Kemper Corporation
Consolidated Balance Sheets
(Dollars in Millions)
(Unaudited)
Jun 30, | Mar 31, | Dec 31, | Sep 30, | Jun 30, | Mar 31, | ||||||||||||
2021 | 2021 | 2020 | 2020 | 2020 | 2020 | ||||||||||||
Assets: | |||||||||||||||||
Investments: | |||||||||||||||||
Fixed Maturities at Fair Value.............................................................................................................................................. | $ | 7,835.0 | $ | 7,479.4 | $ | 7,605.9 | $ | 7,504.8 | $ | 7,480.4 | $ | 6,998.5 | |||||
Equity Securities at Fair Value............................................................................................................................................. | 957.7 | 897.4 | 858.5 | 788.2 | 783.3 | 709.8 | |||||||||||
Equity Securities at Modified Cost....................................................................................................................................... | 32.5 | 36.0 | 40.1 | 48.4 | 48.1 | 44.8 | |||||||||||
Equity Method Limited Liability Investments...................................................................................................................... | 245.5 | 219.2 | 204.0 | 206.2 | 209.9 | 226.3 | |||||||||||
Alternative Energy Partnerships.......................................................................................................................................... | 46.6 | 54.4 | 21.3 | - | - | - | |||||||||||
Convertible Securities at Fair Value..................................................................................................................................... | 43.6 | 42.6 | 39.9 | 36.3 | 35.0 | 32.8 | |||||||||||
Short-termInvestments at Cost which Approximates Fair Value....................................................................................... | 370.6 | 196.9 | 875.4 | 628.8 | 154.2 | 166.7 | |||||||||||
Other Investments............................................................................................................................................................... | 910.8 | 896.8 | 779.0 | 762.8 | 757.5 | 760.2 | |||||||||||
.......................................................................................................................................................................Total Investments | 10,442.3 | 9,822.7 | 10,424.1 | 9,975.5 | 9,468.4 | 8,939.1 | |||||||||||
.........................................................................................................................................................................................Cash | 105.1 | 547.4 | 206.1 | 352.2 | 389.3 | 301.3 | |||||||||||
Receivables from Policyholders.............................................................................................................................................. | 1,479.9 | 1,260.9 | 1,194.5 | 1,249.3 | 1,165.3 | 1,219.1 | |||||||||||
Other Receivables................................................................................................................................................................... | 214.9 | 225.4 | 222.4 | 214.0 | 207.1 | 207.8 | |||||||||||
Deferred Policy Acquisition Costs........................................................................................................................................... | 652.7 | 611.7 | 589.3 | 578.2 | 560.8 | 551.5 | |||||||||||
Goodwill.................................................................................................................................................................................. | 1,311.9 | 1,114.0 | 1,114.0 | 1,114.0 | 1,114.0 | 1,114.0 | |||||||||||
Current Income Tax Assets..................................................................................................................................................... | 94.2 | 65.6 | 15.6 | 33.1 | 3.5 | 17.8 | |||||||||||
Other Assets............................................................................................................................................................................ | 649.7 | 556.0 | 575.9 | 574.1 | 581.0 | 581.7 | |||||||||||
.................................................................................................................................................................................Total Assets | $ | 14,950.7 | $ | 14,203.7 | $ | 14,341.9 | $ | 14,090.4 | $ | 13,489.4 | $ | 12,932.3 | |||||
Liabilities and Shareholders' Equity: | |||||||||||||||||
Insurance Reserves: | |||||||||||||||||
Life and Health..................................................................................................................................................................... | $ | 3,551.6 | $ | 3,541.6 | $ | 3,527.5 | $ | 3,511.5 | $ | 3,497.7 | $ | 3,500.8 | |||||
Property and Casualty......................................................................................................................................................... | 2,430.8 | 1,999.5 | 1,982.5 | 1,950.0 | 1,877.3 | 1,941.6 | |||||||||||
............................................................................................................................................................Total Insurance Reserves | 5,982.4 | 5,541.1 | 5,510.0 | 5,461.5 | 5,375.0 | 5,442.4 | |||||||||||
...............................................................................................................................................................Unearned Premiums | 1,968.1 | 1,713.0 | 1,615.1 | 1,681.6 | 1,642.6 | 1,621.4 | |||||||||||
Policyholder Contract Liabilities.............................................................................................................................................. | 442.7 | 466.5 | 467.0 | 503.7 | 520.3 | 430.5 | |||||||||||
Deferred Income Tax Liabilities............................................................................................................................................... | 269.6 | 227.6 | 285.7 | 245.5 | 226.8 | 116.0 | |||||||||||
Accrued Expenses and Other Liabilities | 859.4 | 793.8 | 727.9 | 677.6 | 759.1 | 783.1 | |||||||||||
Long-termDebt, Current and Non-current,at Amortized Cost.............................................................................................. | 1,122.3 | 1,122.6 | 1,172.8 | 1,173.0 | 777.7 | 778.1 | |||||||||||
............................................................................................................................................................................Total Liabilities | 10,644.5 | 9,864.6 | 9,778.5 | 9,742.9 | 9,301.5 | 9,171.5 | |||||||||||
Shareholders' Equity: | |||||||||||||||||
Common Stock........................................................................................................................................................................ | 6.4 | 6.5 | 6.5 | 6.5 | 6.5 | 6.5 | |||||||||||
Paid-inCapital......................................................................................................................................................................... | 1,770.9 | 1,802.1 | 1,805.2 | 1,798.5 | 1,792.5 | 1,788.2 | |||||||||||
Retained Earnings................................................................................................................................................................... | 1,985.9 | 2,140.0 | 2,071.2 | 1,993.5 | 1,891.6 | 1,791.2 | |||||||||||
Accumulated Other Comprehensive Income.......................................................................................................................... | 543.0 | 390.5 | 680.5 | 549.0 | 497.3 | 174.9 | |||||||||||
.........................................................................................................................................................Total Shareholders' Equity | 4,306.2 | 4,339.1 | 4,563.4 | 4,347.5 | 4,187.9 | 3,760.8 | |||||||||||
..................................................................................................................................Total Liabilities and Shareholders' Equity | $ | 14,950.7 | $ | 14,203.7 | $ | 14,341.9 | $ | 14,090.4 | $ | 13,489.4 | $ | 12,932.3 | |||||
5
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Kemper Corporation published this content on 29 July 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 29 July 2021 20:28:03 UTC.
