US insurer Kemper has reported that it’s net income in the fourth quarter of 2020 was $97.5 million, representing a 22% decrease on the $124.7 million it reported for the same period in 2019.
Looking at the full year, Kemper’s 2020 income similarly dropped 23% from $531.1 million to $409.9 million.
The company’s Specialty Property & Casualty Insurance segment improved net operating income from $62.3 million to $91.1 million in Q4, due to higher premium volume and an improvement in underlying losses and LAE ratio.
Likewise, the Preferred Property & Casualty Insurance segment improved from $12.8 million to $16.9 million due to lower underlying losses and lower catastrophe losses, partially offset by adverse loss development.
But the Life & Health Insurance segment’s net income deteriorated from $28.9 million to $9.4 million, primarily due to an increase in COVID-related mortality.
Catastrophe losses impacted Kemper’s results by $4.4 million over Q4 and by $84.3 million over the full year.
“I’m very pleased with our quarter and full-year performance, against the backdrop of a challenging year,” said President and CEO Joseph P. Lacher, Jr.
“We took actions to further strengthen our organization and an already strong balance sheet. Our performance metrics tell the success story, with tangible book value per share up 15% and return on tangible equity excluding unrealized gains up 16%,” Lacher continued.
“For the year, we generated over $400 million of net income, nearly $440 million of adjusted consolidated net operating income, and $425 million of cash from operations. Further, we continued to grow both top and bottom lines.”
“Additionally, our announced acquisition of American Access will accelerate expansion of our Specialty auto business. Overall, Kemper remains well positioned to continue to deliver value to all our stakeholders.”