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