Kemper Corporation (KMPR) swung to a net loss for the quarter ended Sep. 30, 2016. The company has made a net loss of $16.30 million, or $ 0.32 a share in the quarter, against a net profit of $37.90 million, or $0.73 a share in the last year period. Revenue during the quarter grew 4.11 percent to $640.70 million from $615.40 million in the previous year period. Net premium earned for the quarter increased 4.14 percent or $22.20 million to $558.90 million.
Total expenses move up
Operating loss for the quarter was $523.40 million, compared with an operating loss of $329 million in the previous year period. Net investment income was at $77.70 million for the quarter, up 2.37 percent or $1.80 million from year-ago period. The company has recorded a gain on investments of $3.30 million in the quarter compared with a gain of $2 million for the previous year period.
“The biggest driver of Kemper’s change in results was the charge we took in our life insurance lines, as we initiated our voluntary outreach efforts. We are pleased to have defined our pathway forward and are excited to concentrate on improving the fundamentals of these businesses,” said Joseph P. Lacher, Jr., Kemper’s President and Chief Executive Officer.
Liabilities outpace assets growth
Total assets increased 3.90 percent or $314.70 million to $8,390.30 million on Sep. 30, 2016. On the other hand, total liabilities were at $6,316.70 million as on Sep. 30, 2016, up 4.39 percent or $265.70 million from year-ago. Return on assets stood at 0.04 percent in the quarter, down 0.74 from 0.79 percent in the last year period. Return on equity was negative at 0.79 percent in the quarter against a positive 1.87 percent in the last year period.
Investments move up marginally
Investments stood at $6,745.20 million as on Sep. 30, 2016, up 4.21 percent or $272.20 million from year-ago. Meanwhile, yield on investments went down 2 basis points to 1.15 percent in the quarter. Total debt was almost stable over the past one year at $751.30 million on Sep. 30, 2016. Shareholders equity stood at $2,073.60 million as on Sep. 30, 2016, up 2.42 percent or $49 million from year-ago. As a result, debt to equity ratio went down 1 basis points to 0.36 percent in the quarter from 0.37 percent in the last year period.
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