KEMPER Corp
For the period ended Sep 30, 2024. Filed Oct 30, 2024.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2024 · Filed Oct 30, 2024
KMPR$33.39-5.5%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-06-30; filed 2024-08-05.
0000860748-24-000200
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2024-09-30; filed 2024-10-30.
0000860748-24-000227
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 183 previous paragraphs and 185 current paragraphs.
89 unchanged; 75 reworded; 17 added; 15 removed; 4 previous and 4 current paragraphs rearranged.
Tables are not compared: 21 previous and 21 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (17)
Current report
Net Income (Loss) attributable to Kemper Corporation increased by $543.9 million for the nine months ended September 30, 2024, compared to the same period in 2023, due primarily to higher Adjusted Consolidated Net Operating Income and lower Acquisition and Disposition Related Transaction, Integration, Restructuring and Other Costs from the completion of certain strategic initiatives and lower costs in connection with the 2023 cost structure optimization initiatives. The increase was also due to the absence of a $55.5 million after-tax noncash charge related to the settlement of the Company’s pension obligations recorded in 2023 and the absence of a $45.5 million after-tax charge from the impairment of the goodwill asset related to the Preferred Property & Casualty Insurance business that was also recorded in 2023.
Current report
Total Revenues decreased by $20.5 million to $1,178.9 million for the three months ended September 30, 2024, compared to $1,199.4 million for the same period in 2023. The decrease was primarily driven by a reduction in earned premiums mostly driven by the run-off the Preferred Insurance business, partially offset by an increase from the absence of net realized losses on ultra-long treasury future derivative transactions recorded in 2023 and higher earned premiums within the Specialty Property & Casualty Insurance segment due to higher new business volumes and higher average earned premium per exposure resulting from rate increases.
Current report
Net Investment Income increased by $4.1 million for the three months ended September 30, 2024, compared to the same period in 2023, due primarily to higher rate earned on Company-Owned Life Insurance and higher level of Short-term Investments, partially offset by lower levels of Fixed Income Securities.
Current report
Net Realized Investment Gains (Losses) increased by $31.4 million for the three months ended September 30, 2024, compared to the same period in 2023, due primarily to the absence of net realized losses on ultra-long treasury future derivative transactions recorded in 2023.
Current report
Net Investment Income decreased by $10.6 million for the nine months ended September 30, 2024, compared to the same period in 2023, mostly driven by lower earnings from equity method securities, which included a $15.1 million loss from an investment valuation adjustment of one real estate investment in our alternative investment portfolio, and lower levels of fixed income securities, partially offset by higher levels of Short-term Investments.
Current report
Net Realized Investment Gains (Losses) increased by $47.5 million for the nine months ended September 30, 2024, compared to the same period in 2023, due primarily to the absence of net realized losses on ultra-long treasury future derivative transactions recorded in 2023 and increased gains on sales of fixed maturity investments.
Current report
Earned Premiums in the Specialty Property & Casualty Insurance segment increased by $28.6 million for the three months ended September 30, 2024, compared to the same period in 2023, due to higher new business volumes and higher average earned premium per exposure resulting from rate increases.
Current report
$3.6 million for the three months ended September 30, 2024 compared to $6.2 million for the same period in 2023, an improvement of $2.6 million due to lower average severity per catastrophe event.
Current report
Insurance Expenses were $194.9 million, or 21.2% of earned premiums, for the three months ended September 30, 2024, compared to $182.3 million, or 20.5% of earned premiums for the same period in 2023. Insurance Expenses increased $12.6 million due to higher new business volumes. As a percentage of earned premiums, Insurance Expenses increased 0.7% as expense growth outpaced earned premium growth.
Current report
Earned Premiums decreased by $1.5 million for the three months ended September 30, 2024, compared to the same period in 2023, due primarily to lower volume on life and property insurance.
Current report
Net investment income increased by $0.9 million for the three months ended September 30, 2024, compared to the same period in 2023, due primarily to higher income from Equity Securities mostly driven by alternative investments, partially offset by lower levels of Fixed Income Securities.
Current report
Earned Premiums decreased by $4.9 million for the nine months ended September 30, 2024, compared to the same period in 2023, due primarily to lower volume on life and property insurance.
Current report
Net Investment Income was $111.1 million and $107.0 million for the three months ended September 30, 2024 and 2023, respectively. Net Investment Income increased by $4.1 million in 2024 due primarily to higher rate earned on Company-Owned Life Insurance and higher level of Short-term Investments, partially offset by lower levels of Fixed Income Securities.
Current report
Net Investment Income was $304.5 million and $315.1 million for the nine months ended September 30, 2024 and 2023, respectively. Net Investment Income decreased by $10.6 million in 2024 mostly driven by lower earnings from equity method securities, which included a $15.1 million loss from an investment valuation adjustment of one real estate investment in our alternative investment portfolio, and lower levels of fixed income securities, partially offset by higher levels of Short-term Investments.
Current report
Total Comprehensive Investment Gains (Losses)
Current report
Expenses for the three and nine months ended September 30, 2024 and 2023 were:
Current report
During the three and nine months ended September 30, 2024 Kemper repurchased and retired approximately 400,000 shares of its common stock under its share repurchase authorization for an aggregate cost of $25.0 million and an average cost per share of $61.21. Kemper did not repurchase any shares during the three and nine months ended September 30, 2023.
Removed paragraphs (15)
Previous report
Summary of Results (Continued)
Previous report
Net Income (Loss) attributable to Kemper Corporation increased by $323.9 million for the six months ended June 30, 2024, compared to the same period in 2023, due primarily to higher Adjusted Consolidated Net Operating Income, lower goodwill impairment charges and lower Acquisition and Disposition Related Transaction, Integration, Restructuring and Other Costs
Previous report
Summary of Results (Continued)
Previous report
Net Investment Income decreased by $13.3 million for the three months ended June 30, 2024, compared to the same period in 2023, due primarily to lower rate earned on Equity Method securities and lower amount of other income, partially offset by higher rate earned and amount of Short-term Investments.
Previous report
Total Revenues decreased by $284.7 million to $2,272.9 million for the six months ended June 30, 2024, compared to $2,557.6 million for the same period in 2023. The decrease was primarily driven by a reduction in earned premiums.
Previous report
Net Investment Income decreased by $14.7 million for the six months ended June 30, 2024, compared to the same period in 2023, due primarily to lower rate earned on Equity Method securities and lower amount of other income, offset some by higher rate earned and amount of Short-term Investments.
Previous report
Earned Premiums in the Specialty Property & Casualty Insurance segment decreased by $173.9 million for the six months ended June 30, 2024, compared to the same period in 2023, due to lower new business volumes resulting from targeted actions to improve profitability, partially offset by higher average earned premium per exposure resulting from rate increases and higher policy retention.
Previous report
Earned Premiums decreased $1.4 million for the three months ended June 30, 2024, compared to the same period in 2023, due primarily to lower volume on property insurance.
Previous report
Net investment income decreased by $16.6 million for the three months ended June 30, 2024, compared to the same period in 2023, due primarily to performance of Equity Method securities that included a $15.1 million pre-tax loss from an investment valuation adjustment of a real estate investment in our alternative investment portfolio, and lower levels of Fixed Income Securities.
Previous report
Earned Premiums decreased $3.4 million for the six months ended June 30, 2024, compared to the same period in 2023, due primarily to lower volume on life insurance.
Previous report
Net investment income decreased by $22.1 million for the six months ended June 30, 2024, compared to the same period in 2023, due primarily to performance of Equity Method securities and lower amounts of Fixed Income Securities.
Previous report
Net Investment Income was $193.4 million and $208.1 million for the six months ended June 30, 2024 and 2023, respectively. Net Investment Income decreased by $14.7 million in 2024 based on lower earnings from alternative investments.
Previous report
Total Comprehensive Investment (Losses) Gains
Previous report
Total Comprehensive Investment Losses were $85.6 million for the three months ended June 30, 2024, compared to Total Comprehensive Investment Losses of $87.9 million for the three months ended June 30, 2023.
Previous report
Expenses for the three and six months ended June 30, 2024 and 2023 were:
Reworded paragraphs (75)
Previous wording
Significant non-recurring items are excluded when (a) the nature of the charge or gain is such that it is reasonably unlikely to recur within two years, and (b) there has been no similar charge or gain within the prior two years. The most directly comparable GAAP financial measure is Net Income (Loss) attributable to Kemper Corporation. There were no applicable significant non-recurring items that the Company excluded from the calculation of Adjusted Consolidated Net Operating Income (Loss) for the three and six months ended June 30, 2024 or 2023.
Current wording
Significant non-recurring items are excluded when (a) the nature of the charge or gain is such that it is reasonably unlikely to recur within two years, and (b) there has been no similar charge or gain within the prior two years. There were no applicable significant non-recurring items that the Company excluded from the calculation of Adjusted Consolidated Net Operating Income (Loss) for the three and nine months ended September 30, 2024 or 2023.
Previous wording
Net Income Attributable to Kemper Corporation was $75.4 million ($1.17 per unrestricted common share) for the three months ended June 30, 2024, compared to Net Loss Attributable to Kemper Corporation of $97.1 million ($(1.52) per unrestricted common share) for the same period in 2023.
Current wording
Net Income Attributable to Kemper Corporation was $73.7 million ($1.15 per unrestricted common share) for the three months ended September 30, 2024, compared to Net Loss Attributable to Kemper Corporation of $146.3 million ($(2.28) per unrestricted common share) for the same period in 2023.
Previous wording
Net Income attributable to Kemper Corporation was $146.7 million ($2.28 per unrestricted common share) for the six months ended June 30, 2024, compared to Net Loss attributable to Kemper Corporation of $177.2 million ($(2.77) per unrestricted common share) for the same period in 2023.
Current wording
Net Income attributable to Kemper Corporation was $220.4 million ($3.43 per unrestricted common share) for the nine months ended September 30, 2024, compared to Net Loss attributable to Kemper Corporation of $323.5 million ($(5.05) per unrestricted common share) for the same period in 2023.
Previous wording
A reconciliation of Net Income (Loss) attributable to Kemper Corporation to Adjusted Consolidated Net Operating Income (Loss) (a non-GAAP financial measure) for the three and six months ended June 30, 2024 and 2023 is presented below.
Current wording
A reconciliation of Net Income (Loss) attributable to Kemper Corporation to Adjusted Consolidated Net Operating Income (Loss) (a non-GAAP financial measure) for the three and nine months ended September 30, 2024 and 2023 is presented below.
Previous wording
Net Income (Loss) attributable to Kemper Corporation increased by $172.5 million for the three months ended June 30, 2024, compared to the same period in 2023, due primarily to higher Adjusted Consolidated Net Operating Income, lower goodwill impairment charges and lower Acquisition and Disposition Related Transaction, Integration, Restructuring and Other Costs from the completion of certain strategic initiatives and lower costs in connection with the 2023 cost structure optimization initiatives.
Current wording
Net Income (Loss) attributable to Kemper Corporation increased by $220.0 million for the three months ended September 30, 2024, compared to the same period in 2023, due primarily to higher Adjusted Consolidated Net Operating Income, the absence of a $55.5 million after-tax noncash charge related to the settlement of the Company’s pension obligations recorded in 2023, and lower Acquisition and Disposition Related Transaction, Integration, Restructuring and Other Costs from the completion of certain strategic initiatives.
Previous wording
Adjusted Consolidated Net Operating Income (Loss) increased by $105.9 million for the three months ended June 30, 2024, compared to the same period in 2023, due primarily to an improvement in the Specialty Property & Casualty Insurance segment profitability driven by higher average earned premiums per exposure and lower underlying claim frequency. This was partially offset by a decrease in results from our Life Insurance segment driven by a reduction in net investment income due to an investment valuation adjustment of one real estate investment in our alternative investment portfolio.
Current wording
Adjusted Consolidated Net Operating Income (Loss) increased by $132.8 million for the three months ended September 30, 2024, compared to the same period in 2023, due primarily to an improvement in the Specialty Property & Casualty Insurance segment profitability driven by lower adverse prior year development, higher average earned premiums per exposure as a result of rate increases, and lower underlying claim frequency.
Previous wording
The loss from Non-Core Operations increased by $10.7 million for the three months ended June 30, 2024 compared to the same period in 2023 primarily due to an increase in the underlying combined ratio driven by increased claims severity, higher prior year development and increased catastrophe losses. These were partially offset by an increase in average earned premium as a result of rate increases.
Current wording
The loss from Non-Core Operations increased by $10.1 million for the three months ended September 30, 2024 compared to the same period in 2023 primarily due to reduced earned premiums during the run-off period and increasing claim severity, partially offset by reduced claim frequency and increased average earned premium as a result of rate increases.
Previous wording
Corporate and Other Adjusted Net Operating Loss increased by $1.1 million for the six months ended June 30, 2024 compared to the same period in 2023, due primarily to increased overhead expenses, partially offset by increased investment income.
Current wording
Corporate and Other Adjusted Net Operating Loss increased by $5.7 million for the three months ended September 30, 2024 compared to the same period in 2023, due primarily to increased overhead expenses, partially offset by increased investment income.
Previous wording
Adjusted Consolidated Net Operating Income (Loss) increased by $231.3 million for the six months ended June 30, 2024, compared to the same period in 2023, due primarily to an improvement in the Specialty Property & Casualty Insurance segment profitability driven by higher average earned premiums per exposure and lower underlying claim frequency. This was partially offset by a decrease in results from our Life Insurance segment driven by a reduction in net investment income due to an investment valuation adjustment of one real estate investment in our alternative investment portfolio.
Current wording
Adjusted Consolidated Net Operating Income (Loss) increased by $364.1 million for the nine months ended September 30, 2024, compared to the same period in 2023, due primarily to an improvement in the Specialty Property & Casualty Insurance segment profitability driven by lower adverse prior year development, higher average earned premiums per exposure as a result of rate increases, and lower underlying claim frequency.
Previous wording
The loss from Non-Core Operations decreased by $3.8 million for the six months ended June 30, 2024 compared to the same period in 2023 primarily due to a reduction of business during the runoff period.
Current wording
The loss from Non-Core Operations increased by $6.3 million for the nine months ended September 30, 2024 compared to the same period in 2023 primarily due to reduced earned premiums during the run-off period and increasing claim severity, partially offset by reduced claim frequency and increased average earned premium as a result of rate increases.
Previous wording
Corporate and Other Adjusted Net Operating Loss decreased by $0.9 million for the three months ended June 30, 2024 compared to the same period in 2023, due primarily to increased investment income.
Current wording
Corporate and Other Adjusted Net Operating Loss increased by $6.8 million for the nine months ended September 30, 2024 compared to the same period in 2023, due primarily to increased overhead expenses, partially offset by increased investment income.
Previous wording
Earned Premiums decreased by $282.2 million to $2,065.6 million for the six months ended June 30, 2024 compared to $2,347.8 for the same period in 2023, primarily driven by a $173.9 million decrease from the Specialty Property & Casualty Insurance segment due to lower new business volumes resulting from targeted actions to improve profitability, partially offset by higher average earned premium per exposure resulting from rate increases and higher policy retention. The decrease was also due to $104.9 million in lower premiums from our Preferred Insurance business, reported as Non-Core Operations, due primarily to lower volumes resulting from the decision to exit and run-off the business in the third quarter of 2023 as well as ongoing profit improvement actions.
Current wording
Earned Premiums decreased by $49.3 million to $1,068.5 million for the three months ended September 30, 2024 compared to $1,117.8 for the same period in 2023, primarily driven by $76.4 million in lower premiums from our Preferred Insurance business, reported as Non-Core Operations, due primarily to lower volumes resulting from the decision to exit and run-off the business in the third quarter of 2023 as well as ongoing profit improvement actions. The decrease was partially offset by a $28.6 million increase from the Specialty Property & Casualty Insurance segment due to higher new business volumes and higher average earned premium per exposure resulting from rate increases.
Previous wording
Total Revenues decreased by $132.9 million to $1,129.9 million for the three months ended June 30, 2024, compared to $1,262.8 million for the same period in 2023. The decrease was primarily driven by a reduction in earned premiums.
Current wording
Total Revenues decreased by $305.2 million to $3,451.8 million for the nine months ended September 30, 2024, compared to $3,757.0 million for the same period in 2023. The decrease was primarily driven by a reduction in earned premiums, partially offset by an increase from the absence of net realized losses as described above.
Previous wording
Earned Premiums decreased by $133.2 million to $1,033.7 million for the three months ended June 30, 2024 compared to $1,166.9 for the same period in 2023, primarily driven by a $69.7 million decrease from the Specialty Property & Casualty Insurance segment due to lower new business volumes resulting from targeted actions to improve profitability, partially offset by higher average earned premium per exposure resulting from rate increases. The decrease was also due to $62.1 million in lower premiums from our Preferred Insurance business, reported as Non-Core Operations, due primarily to lower volumes resulting from the decision to exit and run-off the business in the third quarter of 2023 as well as ongoing profit improvement actions.
Current wording
Earned Premiums decreased by $331.5 million to $3,134.1 million for the nine months ended September 30, 2024 compared to $3,465.6 for the same period in 2023, primarily driven by a $181.3 million in lower premiums from our Preferred Insurance business, reported as Non-Core Operations, due primarily to lower volumes resulting from the decision to exit and run-off the business in the third quarter of 2023 as well as ongoing profit improvement actions. The decrease was also due to $145.3 million decrease from the Specialty Property & Casualty Insurance segment due to lower business volumes resulting from targeted actions to improve profitability, partially offset by higher average earned premium per exposure resulting from rate increases.
Previous wording
The Specialty Property & Casualty Insurance segment reported a Total Segment Adjusted Net Operating Income of $102.3 million for the three months ended June 30, 2024, compared to Total Segment Adjusted Net Operating Loss of $10.8 million for the same period in 2023. Segment adjusted net operating results increased by $113.1 million that included a $96.1 million and $17.0 million increase from personal automobile and commercial vehicle insurance, respectively, due primarily to higher average earned premiums per exposure resulting from rate increases and lower underlying claim frequency.
Current wording
The Specialty Property & Casualty Insurance segment reported a Total Segment Adjusted Net Operating Income of $103.6 million for the three months ended September 30, 2024, compared to Total Segment Adjusted Net Operating Loss of $33.2 million for the same period in 2023. Segment adjusted net operating results increased by $136.8 million that included a $123.3 million and $13.5 million increase from personal automobile and commercial vehicle insurance, respectively, due primarily to lower adverse prior year development, higher average earned premiums per exposure resulting from rate increases, and lower underlying claim frequency.
Previous wording
Net Investment Income in the Specialty Property & Casualty Insurance segment increased by $2.1 million for the three months ended June 30, 2024, compared to the same period in 2023, due primarily to higher rate earned on Equity Securities partially offset by lower rate earned on Equity Method securities and lower other income.
Current wording
Net Investment Income in the Specialty Property & Casualty Insurance segment increased by $9.3 million for the three months ended September 30, 2024, compared to the same period in 2023, due primarily to higher levels of Fixed Income Securities and higher rate earned on Company-Owned Life Insurance.
Previous wording
Incurred Loss and LAE were $602.2 million or 69.8% of earned premiums for the three months ended June 30, 2024 compared to $805.4 million or 86.4% of earned premiums, for the same period in 2023. Incurred losses and LAE as a percentage of earned premiums decreased primarily due to an improvement in the underlying loss and LAE ratio and a favorable change in prior year development compared to adverse prior year development in the same period in 2023, and lower catastrophe losses. Underlying losses and LAE as a percentage of earned premiums were 68.7% for the three months ended June 30, 2024, an improvement of 13.2 percentage points, compared to the same period in 2023 driven by higher average earned premium per exposure (23.2% increase year over year) resulting from rate increases and lower underlying claims frequency, partially offset by higher claims average severity trends from elevated environmental and social inflation. Underlying losses and LAE exclude the impact of catastrophes and prior year loss and LAE reserve development. Favorable prior year loss and LAE reserve development (including catastrophe reserve development) was $0.9 million for the three months ended June 30, 2024, compared to adverse development of $24.1 million for the same period in 2023 an improvement of $25.0 million due primarily to stabilization in loss patterns. Catastrophe losses and LAE (excluding reserve development) were $10.3 million for the three months ended
Current wording
Incurred Loss and LAE were $647.9 million or 70.5% of earned premiums for the three months ended September 30, 2024 compared to $796.1 million or 89.4% of earned premiums, for the same period in 2023. Incurred losses and LAE as a percentage of earned premiums decreased primarily due to an improvement in the underlying loss and LAE ratio, lower adverse prior year development, and lower catastrophe losses. Underlying losses and LAE as a percentage of earned premiums were 70.1% for the three months ended September 30, 2024, an improvement of 9.9 percentage points, compared to the same period in 2023 driven by higher average earned premium per exposure (20.9% increase year over year) resulting from rate increases and lower underlying claims frequency, partially offset by higher claims average severity trends. Underlying losses and LAE exclude the impact of catastrophes and prior year loss and LAE reserve development. Adverse prior year loss and LAE reserve development (including catastrophe reserve development) was $0.1 million for the three months ended September 30, 2024, compared to adverse development of $77.8 million for the same period in 2023 an improvement of $77.7 million due primarily to stabilization in loss patterns within bodily injury and physical damage coverages. Catastrophe losses and LAE (excluding reserve development) were
Previous wording
The Specialty Property & Casualty Insurance segment’s three months ended June 30, 2024 effective tax rate was 20.1% compared to 26.9% for the same period in 2023. The effective income tax rate for the second quarters of 2024 and 2023 differs from the federal statutory income tax rate due primarily to investments in Company-Owned Life Insurance, tax-exempt investment income and dividends received deductions.
Current wording
The Specialty Property & Casualty Insurance segment’s three months ended September 30, 2024 effective tax rate was 20.3% compared to 23.5% for the same period in 2023. The effective income tax rate for the third quarters of 2024 and 2023 differs from the federal statutory income tax rate due primarily to investments in Company-Owned Life Insurance, tax-exempt investment income and dividends received deductions. The change in the effective tax rate from the three months ended September 30, 2023 is due primarily to consistent levels of tax preferred investment income on higher segment operating results.
Previous wording
The Specialty Property & Casualty Insurance segment reported a Total Segment Adjusted Net Operating Income of $171.5 million for the six months ended June 30, 2024, compared to Total Segment Adjusted Net Operating Loss of $69.2 million for the same period in 2023. Segment adjusted net operating results improved by $240.7 million that included a $201.1 million and $39.6 million increase from personal automobile and commercial vehicle insurance, respectively, due primarily to higher average earned premiums per exposure resulting from rate increases and lower underlying claim frequency.
Current wording
The Specialty Property & Casualty Insurance segment reported a Total Segment Adjusted Net Operating Income of $275.1 million for the nine months ended September 30, 2024, compared to Total Segment Adjusted Net Operating Loss of $102.4 million for the same period in 2023. Segment adjusted net operating results improved by $377.5 million that included a $324.4 million and $53.1 million increase from personal automobile and commercial vehicle insurance, respectively, due primarily to lower adverse prior year development, higher average earned premiums per exposure resulting from rate increases, and lower underlying claim frequency.
Previous wording
Earned Premiums in the Specialty Property & Casualty Insurance segment decreased by $69.7 million for the three months ended June 30, 2024, compared to the same period in 2023, due to lower new business volumes resulting from targeted actions to improve profitability, partially offset by higher average earned premium per exposure resulting from rate increases.
Current wording
Earned Premiums in the Specialty Property & Casualty Insurance segment decreased by $145.3 million for the nine months ended September 30, 2024, compared to the same period in 2023, due to lower business volumes resulting from targeted actions to improve profitability, partially offset by higher average earned premium per exposure resulting from rate increases.
Previous wording
Net Investment Income in the Specialty Property & Casualty Insurance segment increased by $4.7 million for the six months ended June 30, 2024, compared to the same period in 2023, due primarily to higher rates earned on Short-term Investments and Equity Securities and partially offset by lower rate earned on Equity Method securities and lower amount of other income.
Current wording
Net Investment Income in the Specialty Property & Casualty Insurance segment increased by $14.0 million for the nine months ended September 30, 2024, compared to the same period in 2023, due primarily to higher levels of Fixed Income Securities, higher rates earned on Short-term investments and Company-Owned Life Insurance.
Previous wording
Incurred Loss and LAE were $1,221.3 million or 71.7% of earned premiums for the six months ended June 30, 2024 compared to $1,670.3 million or 89.0% of earned premiums, for the same period in 2023. Incurred losses and LAE as a percentage of earned premiums decreased primarily due to an improvement in the underlying loss and LAE ratio, lower adverse prior year development, and lower catastrophe losses. Underlying losses and LAE as a percentage of earned premiums were 70.6% for the six months ended June 30, 2024, an improvement of 14.1 percentage points, compared to the same period in 2023 driven by higher average earned premium per exposure (24.0% increase year over year) resulting from rate increases and lower underlying claims frequency, partially offset by higher claims average severity trends from elevated environmental and social inflation. Underlying losses and LAE exclude the impact of catastrophes and loss and LAE reserve development. Adverse loss and LAE reserve development (including catastrophe reserve development) was $5.1 million for the six months ended June 30, 2024, compared to adverse development of $55.2 million for the same period in 2023 an improvement of $50.1 million due primarily to normalization in loss patterns. Catastrophe losses and LAE (excluding reserve development) were $14.4 million for the six months ended June 30, 2024 compared to $25.8 million for the same period in 2023, an improvement of $11.4 million due to lower average severity per catastrophe event.
Current wording
Incurred Loss and LAE were $1,869.2 million or 71.3% of earned premiums for the nine months ended September 30, 2024 compared to $2,466.4 million or 89.1% of earned premiums, for the same period in 2023. Incurred losses and LAE as a percentage of earned premiums decreased primarily due to an improvement in the underlying loss and LAE ratio, lower adverse prior year development and lower catastrophe losses. Underlying losses and LAE as a percentage of earned premiums were 70.4% for the nine months ended September 30, 2024, an improvement of 12.7 percentage points, compared to the same period in 2023 driven by higher average earned premium per exposure (23.2% increase year over year) resulting from rate increases and lower underlying claims frequency, partially offset by higher claims average severity trends. Underlying losses and LAE exclude the impact of catastrophes and loss and LAE reserve development. Adverse loss and LAE reserve development (including catastrophe reserve development) was $5.2 million for the nine months ended September 30, 2024, compared to adverse development of $133.0 million for the same period in 2023 an improvement of $127.8 million due primarily to normalization in loss patterns within bodily injury and physical damage coverages. Catastrophe losses and LAE (excluding reserve development) were $18.0 million for the nine months ended September 30, 2024 compared to $32.0 million for the same period in 2023, an improvement of $14.0 million due to lower average severity per catastrophe event.
Previous wording
Insurance Expenses were $357.6 million, or 21.0% of earned premiums, for the six months ended June 30, 2024, compared to $381.3 million, or 20.3% of earned premiums for the same period in 2023. Insurance Expenses decreased $23.7 million due to lower new business volumes and ongoing expense actions. As a percentage of earned premiums, Insurance Expenses increased 0.7% as earned premium decreases outpaced expense decreases.
Current wording
Insurance Expenses were $552.5 million, or 21.1% of earned premiums, for the nine months ended September 30, 2024, compared to $563.6 million, or 20.4% of earned premiums for the same period in 2023. Insurance Expenses decreased $11.1 million due to lower new business volumes and ongoing expense actions. As a percentage of earned premiums, Insurance Expenses increased 0.7% as earned premium decreases outpaced expense decreases.
Previous wording
The Specialty Property & Casualty Insurance segment’s six months ended June 30, 2024 effective tax rate was 20.0% compared to 22.7% for the same period in 2023. The effective income tax rate for the six months ended June 30, 2024 and 2023 differs from the federal statutory income tax rate due primarily to investments in Company-Owned Life Insurance, tax-exempt investment income and dividends received deductions.
Current wording
The Specialty Property & Casualty Insurance segment’s nine months ended September 30, 2024 effective tax rate was 20.1% compared to 23.0% for the same period in 2023. The effective income tax rate for the nine months ended September 30, 2024 and 2023 differs from the federal statutory income tax rate due primarily to investments in Company-Owned Life Insurance, tax-exempt investment income and dividends received deductions. The change in the effective tax rate from the nine months ended September 30, 2023 is due primarily to an increased benefit from tax preferred investment income.
Previous wording
Earned Premiums in personal automobile insurance decreased by $75.1 million for the three months ended June 30, 2024, compared to the same period in 2023, due to lower new business volumes driven by targeted underwriting actions to improve profitability, partially offset by higher average earned premium per exposure resulting from rate increases and higher policy retention. Incurred losses and LAE were $480.1 million, or 69.4% of earned premiums for the three months ended June 30, 2024, compared to $670.8 million, or 87.5% of earned premiums, for the same period in 2023. Incurred losses and LAE as a percentage of earned premiums decreased primarily due to an improvement in the underlying loss and LAE ratio, lower adverse prior year development, and lower catastrophe losses. Underlying losses and LAE as a percentage of related earned premiums were 68.2% for the three months ended June 30, 2024, compared to 83.3% for the same period in 2023, an improvement of 15.1 percentage points driven by higher average earned premiums per exposure resulting from rate increases and a lower frequency of claims, partially offset by higher claims average severity trends from elevated environmental and social inflation. Prior year adverse loss and LAE reserve development was $0.6 million for the three months ended June 30, 2024, compared to adverse development of $17.1 million for the same period in 2023, an improvement of $16.5 million due primarily to stabilization of loss patterns. Catastrophe losses and LAE (excluding reserve development) were $7.9 million for the three months ended June 30, 2024, compared to $15.0 million for the same period in 2023, an improvement of $7.1 million mainly due to lower average severity per catastrophe event.
Current wording
Earned Premiums in personal automobile insurance increased by $7.3 million for the three months ended September 30, 2024, compared to the same period in 2023, due to higher new business volumes and higher average earned premium per exposure resulting from rate increases. Incurred losses and LAE were $507.3 million, or 69.4% of earned premiums for the three months ended September 30, 2024, compared to $659.4 million, or 91.1% of earned premiums, for the same period in 2023. Incurred losses and LAE as a percentage of earned premiums decreased primarily due to an improvement in the underlying loss and LAE ratio, lower adverse prior year development, and lower catastrophe losses. Underlying losses and LAE as a percentage of related earned premiums were 69.5% for the three months ended September 30, 2024, compared to 80.6% for the same period in 2023, an improvement of 11.1 percentage points driven by higher average earned premiums per exposure resulting from rate increases and a lower frequency of claims, partially offset by higher claims average severity trends. Prior year favorable loss and LAE reserve development was $2.6 million for the three months ended September 30, 2024, compared to adverse development of $70.9 million for the same period in 2023, an improvement of $73.5 million due primarily to stabilization of loss patterns. Catastrophe losses and LAE (excluding reserve development) were $2.1 million for the three months ended September 30, 2024, compared to $5.0 million for the same period in 2023, an improvement of $2.9 million mainly due to lower average severity per catastrophe event.
Previous wording
Earned Premiums on personal automobile insurance decreased by $187.7 million for the six months ended June 30, 2024, compared to the same period in 2023, due to lower new business volumes driven by targeted underwriting actions to improve profitability, partially offset by higher average earned premium per exposure resulting from rate increases and higher policy retention. Incurred losses and LAE were $976.4 million, or 71.4% of earned premiums for the six months ended June 30, 2024, compared to $1,399.0 million, or 90.0% of earned premiums, for the same period in 2023. Incurred losses and LAE as a percentage of earned premiums decreased primarily due to an improvement in the underlying loss and LAE ratio, lower adverse prior year development, and lower catastrophe losses. Underlying losses and LAE as a percentage of related earned premiums were 70.1% for the six months ended June 30, 2024, compared to 85.9% for the same period in 2023, an improvement of 15.8 percentage points driven by higher average earned premiums per exposure resulting from rate increases and a lower frequency of claims, partially offset by higher claims average severity trends from elevated environmental and social inflation. Adverse loss and LAE reserve development was $7.7 million for the six months ended June 30, 2024, compared to adverse development of $40.0 million for the same period in 2023, an improvement of $32.3 million due primarily to stabilization of loss patterns. Catastrophe losses and LAE (excluding reserve development) were $11.4 million for the six months ended June 30, 2024, compared to $22.7 million for the same period in 2023, an improvement of $11.3 million mainly due to lower average severity per catastrophe event.
Current wording
Earned Premiums on personal automobile insurance decreased by $180.4 million for the nine months ended September 30, 2024, compared to the same period in 2023, due to lower business volumes driven by targeted underwriting actions to improve profitability, partially offset by higher average earned premium per exposure resulting from rate increases. Incurred losses and LAE were $1,483.7 million, or 70.7% of earned premiums for the nine months ended September 30, 2024, compared to $2,058.4 million, or 90.3% of earned premiums, for the same period in 2023. Incurred losses and LAE as a percentage of earned premiums decreased primarily due to an improvement in the underlying loss and LAE ratio, lower adverse prior year development, and lower catastrophe losses. Underlying losses and LAE as a percentage of related earned premiums were 69.9% for the nine months ended September 30, 2024, compared to 84.2% for the same period in 2023, an improvement of 14.3 percentage points driven by higher average earned premiums per exposure resulting from rate increases and a lower frequency of claims, partially offset by higher claims average severity trends. Adverse loss and LAE reserve development was $5.1 million for the nine months ended September 30, 2024, compared to adverse development of $110.9 million for the same period in 2023, an improvement of $105.8 million due primarily to stabilization of loss patterns. Catastrophe losses and LAE (excluding reserve development) were $13.5 million for the nine months ended September 30, 2024, compared to $27.7 million for the same period in 2023, an improvement of $14.2 million mainly due to lower average severity per catastrophe event.
Previous wording
Earned Premiums in commercial automobile insurance increased by $5.4 million for the three months ended June 30, 2024, compared to the same period in 2023, due primarily to higher average earned premium per exposure resulting from rate increases and targeted mix shifts. Incurred losses and LAE were $122.1 million, or 71.4% of earned premiums in 2024, compared to $134.6 million, or 81.2% of earned premiums in 2023. Incurred losses and LAE as a percentage of earned premiums decreased primarily due to an improvement in the underlying loss ratio and favorable prior year development. Underlying losses and LAE as a percentage of earned premiums were 70.9% in the three months ended June 30, 2024, compared to 75.6% during the same time period in 2023, an improvement of 4.7 percentage points due primarily to higher average earned premiums per exposure resulting from rate increases and mix shifts and a lower frequency of claims, partially offset by higher claims average severity trends from elevated environmental inflation and mix shifts. Favorable loss and LAE reserve development was $1.5 million for the three months ended June 30, 2024, compared to adverse development of $7.0 million for the same period in 2023, an improvement of $8.5 million due primarily to stabilization of loss patterns.
Current wording
Earned Premiums in commercial automobile insurance increased by $21.3 million for the three months ended September 30, 2024, compared to the same period in 2023, due primarily to higher average earned premium per exposure resulting from rate increases and targeted mix shifts. Incurred losses and LAE were $140.6 million, or 74.9% of earned premiums in 2024, compared to $136.7 million, or 82.2% of earned premiums in 2023. Incurred losses and LAE as a percentage of earned premiums decreased primarily due to an improvement in the underlying loss ratio and lower adverse prior year development. Underlying losses and LAE as a percentage of earned premiums were 72.6% in the three months ended September 30, 2024, compared to 77.4% during the same time period in 2023, an improvement of 4.8 percentage points due primarily to higher average earned premiums per exposure resulting from rate increases and mix shifts and a lower frequency of claims, partially offset by higher claims average severity trends from elevated environmental inflation and mix shifts. Adverse loss and LAE reserve development was $2.7 million for the three months ended September 30, 2024, compared to adverse development of $6.9 million for the same period in 2023, an improvement of $4.2 million due primarily to stabilization of loss patterns.
Previous wording
Earned Premiums in commercial automobile insurance increased by $13.8 million for the six months ended June 30, 2024, compared to the same period in 2023, due primarily to higher average earned premium per exposure resulting from rate increases and targeted mix shifts. Incurred losses and LAE were $244.9 million, or 72.9% of earned premiums in 2024, compared to $271.3 million, or 84.3% of earned premiums in 2023. Incurred losses and LAE as a percentage of earned premiums decreased primarily due to an improvement in the underlying loss ratio and favorable prior year development. Underlying losses and LAE as a percentage of earned premiums were 72.8% for the six months ended June 30, 2024, compared to 78.6% during the same time period in 2023, an improvement of 5.8 percentage points due primarily to higher average earned premiums per exposure resulting from rate increases and mix shifts and a lower frequency of claims, partially offset by higher claims average severity trends from elevated environmental inflation and mix shifts. Favorable loss and LAE reserve development was $2.6 million for the six months ended June 30, 2024, compared to adverse development of $15.2 million for the same period in 2023, an improvement of $17.8 million due primarily to stabilization of loss patterns.
Current wording
Earned Premiums in commercial automobile insurance increased by $35.1 million for the nine months ended September 30, 2024, compared to the same period in 2023, due primarily to higher average earned premium per exposure resulting from rate increases and targeted mix shifts. Incurred losses and LAE were $385.5 million, or 73.6% of earned premiums in 2024, compared to $408.0 million, or 83.5% of earned premiums in 2023. Incurred losses and LAE as a percentage of earned premiums decreased primarily due to an improvement in the underlying loss ratio and lower adverse prior year development. Underlying losses and LAE as a percentage of earned premiums were 72.7% for the nine months ended September 30, 2024, compared to 78.1% during the same time period in 2023, an improvement of 5.4 percentage points due primarily to higher average earned premiums per exposure resulting from rate increases and mix shifts and a lower frequency of claims, partially offset by higher claims average severity trends. Adverse loss and LAE reserve development was $0.1 million for the nine months ended September 30, 2024, compared to adverse development of $22.1 million for the same period in 2023, an improvement of $22.0 million due primarily to stabilization of loss patterns.
Previous wording
The Life Insurance segment reported Total Segment Adjusted Net Operating Loss of $0.2 million for the three months ended June 30, 2024, compared to Net Operating Income of $8.9 million for the same period in 2023. The decrease in segment net operating results was primarily due to a reduction in net investment income that included an $11.9 million after-tax loss from an investment valuation adjustment of a real estate investment in our alternative investment portfolio.
Current wording
The Life Insurance segment reported Total Segment Adjusted Net Operating Income of $15.0 million for the three months ended September 30, 2024, compared to Net Operating Income of $14.7 million for the same period in 2023. The increase in segment net operating results was primarily due to an increase in net investment income, partially offset by lower volume on life and property insurance.
Previous wording
Policyholders’ Benefits and Incurred Losses and LAE decreased by $4.4 million for the three months ended June 30, 2024, compared to the same period in 2023, due to lower Policyholders’ Benefits in accident and health products and, to a lesser extent, changes in mortality experience in life insurance products.
Current wording
Policyholders’ Benefits and Incurred Losses and LAE decreased by $0.6 million for the three months ended September 30, 2024, compared to the same period in 2023, due to lower Policyholders’ Benefits in accident and health products.
Previous wording
The Life Insurance segment’s three months ended June 30, 2024 effective income tax rate was 85.0% compared to 10.7% for the same period in 2023. The effective income tax rate for the second quarter of 2024 and 2023 differs from the federal statutory income tax rate due primarily to investments in Company-Owned Life Insurance, tax-exempt investment income and dividends received deductions. The change in the effective tax rate from the three months ended of June 30, 2023 is due primarily to a consistent level of tax preferred investment income on lower segment operating results.
Current wording
The Life Insurance segment’s three months ended September 30, 2024 effective income tax rate was 16.5% compared to 15.4% for the same period in 2023. The effective income tax rate for the third quarter of 2024 and 2023 differs from the federal statutory income tax rate due primarily to investments in Company-Owned Life Insurance, tax-exempt investment income and dividends received deductions. The change in the effective tax rate from the three months ended September 30, 2023 is due primarily to consistent levels of tax preferred investment income on higher segment operating results.
Previous wording
The Life Insurance segment reported Total Segment Adjusted Net Operating Income of $11.7 million for the six months ended June 30, 2024, compared to $22.1 million for the same period in 2023. The decrease in segment net operating results was primarily due to a reduction in net investment income, partially offset by changes in mortality experience from life insurance products.
Current wording
The Life Insurance segment reported Total Segment Adjusted Net Operating Income of $26.7 million for the nine months ended September 30, 2024, compared to $36.8 million for the same period in 2023. The decrease in segment net operating results was primarily due to a reduction in net investment income, partially offset by changes in mortality experience from life insurance products.
Previous wording
Net Investment Income was $93.0 million and $106.3 million for the three months ended June 30, 2024 and 2023, respectively. Net Investment Income decreased by $13.3 million in 2024 based on lower earnings from alternative investments, which included a $15.1 million loss from an investment valuation adjustment of one real estate investment in our alternative investment portfolio.
Current wording
Net investment income decreased by $21.2 million for the nine months ended September 30, 2024, compared to the same period in 2023, due primarily to lower earnings from alternative investments, which included a $15.1 million loss from an investment valuation adjustment of one real estate investment in our alternative investment portfolio, and lower levels of fixed income securities.
Previous wording
Policyholders’ Benefits and Incurred Losses and LAE decreased by $11.3 million for the six months ended June 30, 2024, compared to the same period in 2023, due to changes in mortality experience in life insurance products and lower Policyholders’ Benefits in accident and health products.
Current wording
Policyholders’ Benefits and Incurred Losses and LAE decreased by $11.9 million for the nine months ended September 30, 2024, compared to the same period in 2023, due to changes in mortality experience in life insurance products and lower Policyholders’ Benefits in accident and health products.
Previous wording
The Life Insurance segment’s six months ended June 30, 2024 effective income tax rate was 7.6% compared to 11.3% for the same period in 2023. The effective income tax rate for the second quarters of 2024 and 2023 differs from the federal statutory income tax rate due primarily to investments in Company-Owned Life Insurance, tax-exempt investment income and dividends received deductions. The decrease in the effective tax rate from the six months ended of June 30, 2023 is due primarily to an increased benefit from tax preferred investment income.
Current wording
The Life Insurance segment’s nine months ended September 30, 2024 effective income tax rate was 12.8% compared to 13.0% for the same period in 2023. The effective income tax rate for the third quarters of 2024 and 2023 differs from the federal statutory income tax rate due primarily to investments in Company-Owned Life Insurance, tax-exempt investment income and dividends received deductions. The decrease in the effective tax rate from the nine months ended September 30, 2023 is due primarily to an increased benefit from tax preferred investment income.
Previous wording
Net Investment Income for the three and six months ended June 30, 2024 and 2023 is presented below:
Current wording
Net Investment Income for the three and nine months ended September 30, 2024 and 2023 is presented below:
Previous wording
The components of Total Comprehensive Investment (Losses) Gains for the three and six months ended June 30, 2024 and 2023 are presented below:
Current wording
The components of Total Comprehensive Investment Gains (Losses) for the three and nine months ended September 30, 2024 and 2023 are presented below:
Previous wording
Total Comprehensive Investment Losses were $183.7 million for the six months ended June 30, 2024, compared to Total Comprehensive Investment Gains of $102.1 million for the six months ended June 30, 2023. The decrease of $285.8 million in comprehensive investment results was primarily due to an increase in the Company’s unrealized loss position on the fixed income securities portfolio in the first half of 2024 as compared to a decrease in the Company's unrealized loss position on the fixed income securities portfolio in the first half of 2023, driven by changes in interest rates.
Current wording
Total Comprehensive Investment Gains were $287.2 million for the three months ended September 30, 2024, compared to Total Comprehensive Investment Losses of $360.1 million for the three months ended September 30, 2023. The increase of $647.3 million in comprehensive investment results was primarily due to a decrease in the Company’s unrealized loss position on the fixed income securities portfolio in the third quarter of 2024, compared to an increase in the Company's unrealized loss position on the fixed income securities portfolio in the third quarter of 2023, driven by changes in interest rates.
Previous wording
The components of Change in Fair Value of Equity and Convertible Securities for the three and six months ended June 30, 2024 and 2023 are presented below:
Current wording
The components of Change in Fair Value of Equity and Convertible Securities for the three and nine months ended September 30, 2024 and 2023 are presented below:
Previous wording
The components of Net Realized Investment Gains (Losses) for the three and six months ended June 30, 2024 and 2023 are presented below:
Current wording
The components of Net Realized Investment Gains (Losses) for the three and nine months ended September 30, 2024 and 2023 are presented below:
Showing the first 40 of 75 pairs. Open the source sections for the rest.
Rearranged current paragraphs (4)
Current report — wording carried from elsewhere
Total Comprehensive Investment Gains were $103.5 million for the nine months ended September 30, 2024, compared to Total Comprehensive Investment Losses of $258.0 million for the nine months ended September 30, 2023. The increase of $361.5 million in comprehensive investment results was primarily due to an decrease in the Company’s unrealized loss position on the fixed income securities portfolio in 2024, compared to an increase in the Company's unrealized loss position on the fixed income securities portfolio in 2023, driven by changes in interest rates.
Current report — wording carried from elsewhere
During the first nine months of 2024, United Insurance received advances of $62.4 million from the FHLB of Chicago and made repayments of $98.4 million. United Insurance had outstanding advances from the FHLB of Chicago totaling
Current report — wording carried from elsewhere
Generally, there is a time lag between when premiums are collected and when policyholder benefits and insurance claims are paid. During periods of growth, property and casualty insurance companies typically experience positive operating cash flows and can invest a portion of their operating cash flows to fund future policyholder benefits and claims. During periods in which premium revenues decline, insurance companies may experience negative cash flows from operations and may need to sell
Current report — wording carried from elsewhere
Net Cash (Used in) Provided by Investing Activities
Rearranged previous paragraphs (4)
Previous report — wording carried elsewhere
from the completion of certain strategic initiatives and lower costs in connection with the 2023 cost structure optimization initiatives.
Previous report — wording carried elsewhere
June 30, 2024 compared to $17.4 million for the same period in 2023, an improvement of $7.1 million due to lower average severity per catastrophe event.
Previous report — wording carried elsewhere
Insurance Expenses were $180.7 million, or 20.9% of earned premiums, for the three months ended June 30, 2024, compared to $187.5 million, or 20.1% of earned premiums for the same period in 2023. Insurance Expenses decreased $6.8 million due to lower new business volumes and ongoing expense actions. As a percentage of earned premiums, Insurance Expenses increased 0.8% as earned premium decreases outpaced expense decreases.
Previous report — wording carried elsewhere
Net Cash Provided by (Used in) Investing Activities