Kemper Corporation has reported it anticipates its Q3 2022 results will include pre-tax catastrophe losses ranging from $25m to $30m, primarily related to Hurricane Ian.
The company notes that it does not expect to recover any of these losses under its reinsurance programs. Nor does it anticipate adverse prior-year development.
Kemper reported a net loss of $74.7m for Q2 of 2022, compared to a net loss of $62.6m from Q2 of 2021.
At the time, Joseph P. Lacher, Jr., President, CEO, and Chairman commented, “Our second quarter results showed progress and commitment towards restoring profitability. This was highlighted by our rate filing actions that exceeded the expectations we outlined in the first quarter.”
Kemper also announced around this time that it agreed to sell Reserve National Insurance Company and its subsidiaries, which are predominantly focused on accident and health insurance, to Medical Mutual of Ohio for $90m.
Additionally, AM Best made the decision to downgrade the firm’s Financial Strength Ratings in August, owing to a prolonged deterioration in the earnings of Kemper P&C and Kemper Corp last year and into 2022.
Kemper will host its conference call to discuss Q3 results in full on November 2.
Meanwhile, analysts at Fitch Ratings recently increased their estimate for re/insurance industry losses from Hurricane Ian to a range of $35bn to $55bn from the initial estimate of $25bn to $40bn.
A new report from Moody’s also suggests that given the severity of losses stemming from Ian, primary insurers will share a significant part of the loss burden with traditional reinsurers and alternative capital providers.
