Kemper Corporation reported a second-quarter GAAP net loss of $464.8 million, or $7.90 per share, driven by a $460 million non-cash goodwill impairment in its specialty auto segment. Adjusted net operating income was $26.3 million, or $0.45 per share, as the insurer cited sequential improvement in underlying operating performance. CEO Steve McAnena said restoring profitability is the primary priority, with growth to be pursued only where it can be achieved profitably. The specialty auto segment’s normalized underlying combined ratio improved 0.8 points sequentially to 102%, with personal auto improving 1.3 points to 105.2% but remaining challenged in California, where Kemper is reducing exposure and pursuing additional rate increases. Commercial auto posted an underlying combined ratio of 93.7% but will see more disciplined growth amid adverse prior-year reserve development, while the life business generated $18 million in net operating income and the company identified more than $80 million in annualized cost savings.
Kemper CorporationReports $460 million goodwill impairment and GAAP net loss, though adjusted operating income improved.
