US insurer Kemper Corporation has reported net income of $123.2 million for its Q1 results compared to $64.0 million, for the year prior.
In the first quarter of 2021, net income included a $41.2 million after-tax gain, or $0.62 per diluted share, attributable to the change in fair value of equity and convertible securities.
It also reported an improved combined ratio from 94.5% in 2020 to 93.5%, this is a result of an increase in miles driven and corresponding accident frequency.
Joseph Lacher, Jr., President and Chief Executive Officer commented: “I’m pleased to report that Kemper, despite some short-term headwinds, continued to deliver solid results and intrinsic value to our shareholders.
“This quarter, we continued to generate double-digit ROE and growth in tangible book value per share excluding fixed income unrealised gains and losses. Our Specialty Auto business continues to produce strong earnings, and although we saw impacts from slower state re-openings, our Specialty Auto business reported net operating income of $80 million, or 33% over the prior year quarter, with the top line increasing by 7%. The business remains well-positioned for attractive long-term growth and returns.
“Further, since the beginning of the year, we have deployed roughly $500 million of capital through several actions. These demonstrate our thoughtful approach to capital deployment. Notable items include the repurchase of approximately $85 million in stock, the repayment of a $50 million term loan, an increase in our annual dividend to $1.24 per share, and the close of our acquisition of American Access.
“The strength of Kemper’s business model and our history of effective strategy execution positions us to navigate through the pandemic recovery. We feel confident that we will continue to meet the ongoing needs of our customers, as well as provide quality results and value creation for our stakeholders.”