Kemper (KMPR) Q4 2024 earnings summary

Executive summary

• Net income for Q4 2024 was $97.4 million ($1.51 per diluted share), with adjusted consolidated net operating income of $115.1 million ($1.78 per share), both up significantly year-over-year.

• Full-year 2024 net income reached $317.8 million ($4.91 per diluted share), reversing a prior-year loss, with strong performance from Specialty P&C and stable life segment returns.

• Return on equity was 14% in Q4 (21.4% adjusted) and 11.9% for the year (18.3% adjusted), with book value per share up 11.8% year-over-year.

• Specialty P&C segment delivered robust profitability and growth, while the life segment maintained strong distributable cash flows and favorable mortality experience.

• Parent company liquidity stood at ~$1.3 billion, with $450 million in senior notes to be retired, enhancing financial flexibility.

Financial highlights

• Q4 2024 net income was $97.4 million ($1.51 per diluted share); adjusted consolidated net operating income was $115.1 million ($1.78 per share).

• Full-year net income was $317.8 million ($4.91 per share); adjusted consolidated net operating income was $381.5 million ($5.89 per share).

• Book value per share at year-end was $43.68, up 11.8% year-over-year; adjusted book value per share was $29.04, up 14.4%.

• Specialty P&C earned premium grew 10.3% year-over-year in Q4 2024; policies in force up 5.1% year-over-year.

• Catastrophe losses and related LAE impacted net income by $64 million in Q4 2024.

Outlook and guidance

• Management expects continued strong profitability and growth in Specialty P&C, supported by competitive advantages and favorable market conditions.

• Life segment anticipated to deliver annual adjusted net operating income run rate of ~$55 million, with strong returns on capital.

• Underlying combined ratio expected to gradually migrate toward 93–95% as market normalizes, with some seasonality returning.