Summary of Kemper Q4 2020 earnings call
A summary of Kemper ‘s Q4 2020 earnings conference call (February 1).
- Founded in 1990 and headquartered in Chicago
- ~6.2 million policies in force
- ~30,000 agents
- ~9,500 employees
- Reported net income of $98 million and adjusted consolidated net operating income of $106 million or $1.59 per diluted share, an increase of 10% over the prior-year quarter
- Specialty Auto – earned premiums increased 10% annually
- Life & Health segment – earnings continue to be impacted by COVID-related mortality, in line with domestic trends
- In Q4 announced the acquisition of American Access Casualty Company (AAC), a $370 million cash transaction;
- According to Kemper, AAC accelerates the expansion of its specialty franchise, gives it increased scale in new and underpenetrated geographies and enhances its customer reach with a focus on low-limit auto policies and the Hispanic market.
- AAC’s customer profile is similar to that of its legacy Alliance United book in California. It expands the low limit customer focus to Texas, Illinois, Nevada, Arizona, and Indiana.
- Specialty segment; earned premiums increased 10% and policies in force were up 4%
- Shut off Life new business sales for a handful of months this spring in response to the pandemic but were able to grow overall life insurance premium
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Kemper announced today that, as part of its response to the coronavirus (COVID-19) pandemic, it will provide a 15% credit to personal auto policyholders towards their April and May premiums, as well as committing $1 million to organizations focused on critical issues including food insecurity and supporting front-line medical personnel.