Kemper Q2 Earnings Call Highlights

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Kemper (NYSE:KMPR) reported a second-quarter nett nonaccomplishment of $464.8 million, oregon $7.90 per share, arsenic a $460 cardinal non-cash goodwill impairment successful its specialty car conception weighed connected GAAP results. Adjusted consolidated nett operating income was $26.3 million, oregon $0.45 per share, arsenic the insurer cited sequential betterment successful underlying operating performance.

President and Chief Executive Officer Steve McAnena, who joined the institution 2 months ago, said restoring profitability is Kemper's superior priority, with maturation to beryllium pursued lone wherever it tin beryllium achieved profitably.

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"Profitability is simply a prerequisite for growth, and arsenic such, maturation volition beryllium earned, not chased," McAnena said.

The institution said its underlying operating show improved done spot and casualty underwriting results, disbursal subject and unchangeable net from its beingness security business. Net concern income totaled $105 cardinal during the quarter, portion trailing 12-month currency travel was $434 million.

Goodwill Impairment Drives Reported Loss

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Chief Financial Officer Brad Camden said the goodwill impairment was triggered by caller operational challenges and a consequent diminution successful Kemper's stock price, requiring a quantitative appraisal nether GAAP. The complaint was based successful portion connected the company's second-quarter stock terms and reduced goodwill successful the Specialty Property & Casualty conception to astir $570 million.

Camden said the impairment does not impact the company's ongoing operations, cash-generating ability, statutory capital, holding-company liquidity oregon compliance with indebtedness and revolving recognition covenants.