Kemper(US:KMPR)2023-08-07 20:21Financial Performance - Total revenues for the six months ended June 30, 2023, were $2,557.6 million, a decrease of 8.2% compared to $2,787.8 million for the same period in 2022[22]. - Net loss for the six months ended June 30, 2023, was $177.2 million, compared to a net loss of $158.5 million for the same period in 2022, reflecting a 11.0% increase in losses[22]. - Total comprehensive loss for the six months ended June 30, 2023, was $143.1 million, compared to $266.3 million for the same period in 2022, showing a significant reduction of 46.3%[24]. - The company reported a net loss per unrestricted share of $2.77 for the six months ended June 30, 2023, compared to $2.49 for the same period in 2022[22]. - For the three months ended June 30, 2023, Kemper Corporation reported a net loss of $97.1 million, compared to a net loss of $72.2 million for the same period in 2022[39]. - The total net operating loss for the company was $177.2 million for the six months ended June 30, 2023, compared to a loss of $158.5 million in the same period of 2022[72]. Insurance Operations - Policyholders' benefits and incurred losses totaled $2,036.7 million for the six months ended June 30, 2023, down from $2,274.3 million in the same period of 2022, indicating a decrease of 10.5%[22]. - Total earned premiums for the six months ended June 30, 2023, were $2,347.8 million, a decrease from $2,657.6 million in the same period of 2022, representing a decline of approximately 11.6%[68]. - The Specialty Property & Casualty Insurance segment earned premiums of $1,554.5 million for the six months ended June 30, 2023, compared to $1,807.5 million in 2022, indicating a decrease of 13.9%[68]. - The Preferred Property & Casualty Insurance segment reported earned premiums of $75.7 million for the three months ended June 30, 2023, down from $94.0 million in the same period of 2022, a decline of 19.3%[68]. - The total operating loss for the Specialty Property & Casualty Insurance segment was $89.7 million for the six months ended June 30, 2023, an improvement from a loss of $111.2 million in 2022[70]. Assets and Liabilities - Total assets decreased to $13,096.3 million as of June 30, 2023, down from $13,313.6 million at December 31, 2022, representing a decline of approximately 1.6%[28]. - Total liabilities decreased to $10,584.1 million as of June 30, 2023, from $10,643.0 million at the end of 2022, a reduction of about 0.6%[28]. - Shareholders' equity decreased to $2,512.2 million as of June 30, 2023, down from $2,670.6 million at December 31, 2022, representing a decline of approximately 5.9%[28]. - The company reported a goodwill impairment of $49.6 million in the first half of 2023, which was not present in the same period of 2022[30]. Cash Flow and Investments - Cash flows from operating activities showed a net cash used of $65.9 million for the six months ended June 30, 2023, an improvement from $90.0 million in the prior year[30]. - Net cash used in investing activities was $35.1 million for the first half of 2023, significantly improved from $132.5 million in the same period of 2022[33]. - Net Investment Income for the six months ended June 30, 2023, was $208.1 million, down from $218.5 million for the same period in 2022[110]. - The company recognized a net realized investment loss of $8.0 million for the six months ended June 30, 2023, compared to a gain of $12.5 million in 2022[70]. Accounting Changes - The company adopted ASU 2018-12 as of January 1, 2023, which affected the financial statements and prior period amounts have been recasted accordingly[22]. - The company adopted ASU 2018-12, resulting in a reduction of beginning retained earnings by $25.1 million and a decrease in Accumulated Other Comprehensive Income by $1,030.3 million as of January 1, 2021[47]. - The company is currently evaluating the impact of ASU 2023-02, which expands the use of the proportional amortization method for tax credit investments, effective after December 15, 2023[51]. Future Outlook and Risks - The company cautions that forward-looking statements may not be achieved due to various risks and uncertainties, including economic conditions and regulatory changes[12]. - The company continues to evaluate its financial position and results in light of the new accounting guidance, which may affect future performance[43]. Shareholder Actions - The company paid cash dividends of $39.6 million during the first half of 2023, consistent with the previous year's payment of $40.0 million[33]. - Cash dividends paid to shareholders were $20.2 million, maintaining a dividend of $0.31 per share[39]. - Kemper's remaining share repurchase authorization was $171.6 million as of June 30, 2023, down from $333.3 million authorized in May 2020[154]. - The company did not repurchase any shares of its common stock during the six months ended June 30, 2023[155].