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Section 1: 8-K (8-K)

Document


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
Form 8-K
 
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): November 5, 2018 
Kemper Corporation
(Exact name of registrant as specified in its charter)
 
Commission File Number: 001-18298
 
 
 
 
DE
 
95-4255452
(State or other jurisdiction
of incorporation)
 
(IRS Employer
Identification No.)
One East Wacker Drive, Chicago, IL 60601
(Address of principal executive offices, including zip code)
312-661-4600
(Registrant’s telephone number, including area code)
(Former name or former address, if changed since last report)
 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the Registrant under any of the following provisions (see General Instruction A.2.below):
¨
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
¨
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
¨
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
¨
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
 
Emerging Growth Company
¨
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition
period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of
the Exchange Act.    ¨






Section 2. – Financial Information
Item 2.02.
Results of Operations and Financial Condition.
On November 5, 2018, Kemper Corporation ("Kemper" or the "Registrant") issued a press release announcing its financial results for the third quarter of 2018 and the availability of Kemper’s third quarter investor supplement and earnings call presentation on its website, kemper.com. The press release, the investor supplement and the earnings call presentation are furnished as Exhibits 99.1, 99.2 and 99.3, respectively, to this report.
Section 9. – Financial Statements and Exhibits.
Item 9.01.
Financial Statements and Exhibits.
(d) Exhibits

99.1 Registrant’s press release dated November 5, 2018.
99.2 Third Quarter 2018 Investor Supplement of Kemper Corporation.
99.3 Third Quarter 2018 Earnings Call Presentation

SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
 
 
 
 
 
 
 
 
 
Kemper Corporation
 
 
 
Date:
November 5, 2018
 
 
/S/    JAMES J. MCKINNEY
 
 
 
 
James J. McKinney
 
 
 
 
Senior Vice President and Chief Financial Officer (principal financial officer)



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Section 2: EX-99.1 (EXHIBIT 99.1 COMPANY PRESS RELEASE)

Exhibit
Exhibit 99.1
 


 
395635700_kemperlogocolorwebfinal.jpg
Kemper Corporation
200 East Randolph Street
Chicago, IL 60601
kemper.com

 
 
 
 
Press Release
 
Kemper Reports Strong Third Quarter 2018 Results
CHICAGO, November 5, 2018 Kemper Corporation (NYSE: KMPR) reported net income of $92.2 million, or $1.40 per diluted share, for the third quarter of 2018, compared to $47.7 million, or $0.92 per diluted share, for the third quarter of 2017. As adjusted for the acquisition of Infinity1, net income was $131.7 million, or $2.01 per diluted share, for the third quarter of 2018, compared to $62.7 million, or $0.96 per diluted share, for the third quarter of 2017.
Adjusted consolidated net operating income2 was $104.5 million, or $1.59 per diluted share, for the third quarter of 2018, compared to $44.4 million, or $0.85 per diluted share, for the third quarter of 2017. These results increased primarily from the significant growth in non-standard personal automobile insurance division, partially offset by the amortization of the Infinity purchase accounting adjustments.
Highlights of the quarter include:
Property & Casualty earned premiums increased by 102 percent, or $452 million in the quarter, as reported, or 14 percent, or $107 million, as adjusted 1 
Nonstandard personal automobile’s earned premiums increased by 166 percent, or $409 million in the quarter, as reported, or 18 percent, or $101 million, as adjusted 1 
Investment portfolio generated a pre-tax equivalent annualized book yield of 5.2 percent in the quarter
“I’m very pleased with our performance this quarter, including strong earnings and double-digit growth in our specialty auto business, continued stability in our life and health results, and solid gains in investment income,” said Joseph P. Lacher, Jr., Kemper’s President and Chief Executive Officer. “In addition, we achieved two important milestones this quarter: the closing of our acquisition of Infinity, accelerating our progress towards becoming the premiere specialty auto franchise, and the introduction of our new brand identity, which will be an important part of strengthening our purpose and our connections with customers, employees, agents, and communities over the long term.”
 
 
Three Months Ended
 
Nine Months Ended
(Dollars in Millions, Except Per Share Amounts) (Unaudited)
 
Sep 30,
2018
 
Sep 30,
2017
 
Sep 30,
2018
 
Sep 30,
2017
Adjusted Consolidated Net Operating Income2
 
$
104.5

 
$
44.4

 
$
198.5

 
$
61.5

Income from Continuing Operations
 
92.3

 
47.8

 
183.4

 
84.0

Net Income
 
92.2

 
47.7

 
183.6

 
84.0

 
 
 
 
 
 
 
 
 
Impact of Catastrophe Losses and Related Loss Adjustment Expense (LAE) on Net Income
 
$
(15.9
)
 
$
(21.5
)
 
$
(56.3
)
 
$
(87.2
)
 
 
 
 
 
 
 
 
 
Diluted Net Income Per Share From:
 
 
 
 
 
 
 
 
Adjusted Consolidated Net Operating Income2
 
$
1.59

 
$
0.85

 
$
3.49

 
$
1.19

Income from Continuing Operations
 
1.40

 
0.92

 
3.23

 
1.62

Net Income
 
1.40

 
0.92

 
3.23

 
1.62

 
 
 
 
 
 
 
 
 
Impact of Catastrophe Losses and Related LAE on Net Income Per Share
 
$
(0.24
)
 
$
(0.41
)
 
$
(0.99
)
 
$
(1.68
)

1 As Adjusted is a non-GAAP measure, which is computed by excluding the impact of purchase accounting and including the historical results of Legacy Kemper and Legacy Infinity in periods prior to the acquisition date of July 2, 2018. See Use of Non-GAAP Financial Measures for additional information.
2 Adjusted consolidated net operating income is an after-tax, non-GAAP financial measure. See Use of Non-GAAP Financial Measures for additional information.


Capital
Total Shareholders’ Equity at the end of the quarter was $3,063.8 million, an increase of $948.2 million, or 45 percent, since year-end 2017 driven by our acquisition of Infinity and net income. Kemper ended the quarter with cash and investments at the holding company of $91.3 million, and the $300 million revolving credit agreement was undrawn.
During the third quarter of 2018, Kemper paid dividends of $15.7 million.
Kemper ended the quarter with a book value per share of $47.33, an increase of 15 percent from $41.11 at the end of 2017. Book value per share excluding net unrealized gains on fixed maturities was $45.22, up 27 percent from $35.57 at the end of 2017, driven by the Infinity acquisition and net income, partially offset by dividends paid to shareholders.
Revenues
Total revenues for the third quarter of 2018 increased $505.2 million, or 73 percent, to $1,195.5 million, compared to the third quarter of 2017, driven by $408.8 million higher nonstandard personal auto earned premiums. On an as adjusted basis, revenues for the third quarter of 2018 increased $150.5 million, or 14 percent, to $1,195.5 million, compared to the third quarter of 2017, driven by $101.5 million higher nonstandard personal auto earned premiums. Nonstandard personal auto earned premiums increased primarily from higher policies in force. Net investment income increased $6.1 million to $92.0 million in the third quarter of 2018, as an $8.8 million increase in interest on fixed income securities was primarily offset by a $4.2 million reduction in net investment income on the alternative investments portfolio. Net realized investment gains were $3.6 million in the third quarter of 2018, compared to $8.1 million last year. Other income increased $36.8 million to $37.8 million in the third quarter of 2018 almost entirely due to a gain from the partial satisfaction of a judgment against Computer Services Corporation.
The investment portfolio in total generated a pre-tax equivalent annualized book yield of 5.2 percent for the third quarter of 2018, compared to 5.8 percent in 2017.
Segment Results
Unless otherwise noted, (i) the segment results discussed below are presented on an after-tax basis, (ii) prior-year development includes both catastrophe and non-catastrophe losses and LAE, (iii) catastrophe losses and LAE exclude the impact of prior-year development, (iv) underlying loss ratio includes loss and LAE, and (v) all comparisons are made to the prior year quarter unless otherwise stated.
 
 
Three Months Ended
 
Nine Months Ended
(Dollars in Millions) (Unaudited)
 
Sep 30,
2018
 
Sep 30,
2017
 
Sep 30,
2018
 
Sep 30,
2017
Segment Net Operating Income:
 
 
 
 
 
 
 
 
Property & Casualty Insurance
 
$
28.2

 
$
22.9

 
$
79.4

 
$
5.7

Life & Health Insurance
 
26.7

 
23.5

 
76.9

 
65.5

Total Segment Net Operating Income
 
54.9

 
46.4

 
156.3

 
71.2

Corporate and Other Net Operating Income (Loss)
 
49.6

 
(2.0
)
 
42.2

 
(9.7
)
Adjusted Consolidated Net Operating Income
 
104.5

 
44.4

 
198.5

 
61.5

Net Income (Loss) From:
 
 
 
 
 
 
 
 
Change in Fair Value of Equity Securities
 
8.7

 

 
9.6

 

Net Realized Gains on Sales of Investments
 
2.8

 
5.3

 
7.9

 
29.3

Net Impairment Losses Recognized in Earnings
 
(1.4
)
 
(1.9
)
 
(1.8
)
 
(6.8
)
Acquisition Related Transaction and Integration Costs
 
(22.3
)
 

 
(30.8
)
 

Income from Continuing Operations
 
$
92.3

 
$
47.8

 
$
183.4

 
$
84.0


2


The Property & Casualty Insurance segment reported net operating income of $28.2 million for the third quarter of 2018, compared to $22.9 million in 2017. Results increased primarily from strong nonstandard personal auto growth and profitability and lower catastrophe losses, partially offset by the impact of the amortization of the Infinity purchase accounting adjustments. Catastrophe losses were $19.7 million before taxes in the third quarter of 2018, compared to $29.8 million last year. On an as adjusted basis, the Property & Casualty Insurance segment’s net operating income was $68.0 million in the third quarter of 2018, compared to $39.6 million in 2017.
The Property & Casualty Insurance segment’s underlying combined ratio increased 5.4 percentage points to 98.0 percent in the third quarter of 2018, primarily from an increase in the insurance expense ratio due to the amortization of the Infinity purchase accounting adjustments. The underlying loss ratio increased 1.3 percentage points to 71.9 percent, primarily from a deterioration in homeowners, partially offset by improvements in nonstandard personal auto and preferred personal auto. Nonstandard auto’s underlying loss ratio improved 1.1 percentage points to 74.1 percent in the quarter, as average earned premium outpaced loss cost trends. Preferred personal auto’s underlying loss ratio improved 2.5 percentage points to 67.2 percent, driven by increased earned rate and moderating loss trends. The homeowners underlying loss ratio increased 3.5 percentage points to 58.9 percent due to the cost related to our aggregate catastrophe program and a single large fire loss.
The Property & Casualty Insurance segment’s expense ratio increased 4.1 percentage points primarily due to the amortization of the Infinity purchase accounting adjustments.
The Life & Health Insurance segment reported net operating income of $26.7 million for the third quarter of 2018, compared to $23.5 million in 2017, primarily driven by higher earned premiums, an improved benefits ratio and to a lesser extent, an improved expense ratio. These gains were partially offset by a reduction in investment income in the Life business.


3


Unaudited condensed consolidated statements of income for the three and nine months ended September 30, 2018 and 2017 are presented below.
 
 
Three Months Ended
 
Nine Months Ended
(Dollars in Millions, Except Per Share Amounts)
 
Sep 30,
2018
 
Sep 30,
2017
 
Sep 30,
2018
 
Sep 30,
2017
Revenues:
 
 
 
 
 
 
 
 
Earned Premiums
 
$
1,052.9

 
$
598.2

 
$
2,320.8

 
$
1,744.1

Net Investment Income
 
92.0

 
85.9

 
249.6

 
244.6

Other Income
 
37.8

 
1.0

 
40.2

 
2.9

Income from Change in Fair Value of Equity Securities
 
11.0

 

 
12.1

 

Net Realized Gains on Sales of Investments
 
3.6

 
8.1

 
10.0

 
45.0

Other-than-temporary Impairment Losses:
 
 
 
 
 
 
 
 
Total Other-than-temporary Impairment Losses
 
(1.8
)
 
(2.9
)
 
(2.3
)
 
(10.7
)
Portion of Losses Recognized in Other Comprehensive Income
 

 

 

 
0.2

Net Impairment Losses Recognized in Earnings
 
(1.8
)
 
(2.9
)
 
(2.3
)
 
(10.5
)
Total Revenues
 
1,195.5

 
690.3

 
2,630.4

 
2,026.1

Expenses:
 
 
 
 
 
 
 
 
Policyholders’ Benefits and Incurred Losses and Loss Adjustment Expenses
 
757.3

 
440.1

 
1,693.7

 
1,364.9

Insurance Expenses
 
296.0

 
163.7

 
627.3

 
485.2

Interest and Other Expenses
 
61.7

 
18.2

 
116.4

 
59.1

Total Expenses
 
1,115.0

 
622.0

 
2,437.4

 
1,909.2

Income from Continuing Operations before Income Taxes
 
80.5

 
68.3

 
193.0

 
116.9

Income Tax Expense
 
11.8

 
(20.5
)
 
(9.6
)
 
(32.9
)
Income from Continuing Operations
 
92.3

 
47.8

 
183.4

 
84.0

Income from Discontinued Operations
 
(0.1
)
 
(0.1
)
 
0.2

 

Net Income
 
$
92.2

 
$
47.7

 
$
183.6

 
$
84.0

 
 
 
 
 
 
 
 
 
Income from Continuing Operations Per Unrestricted Share:
 
 
 
 
 
 
 
 
Basic
 
$
1.42

 
$
0.92

 
$
3.26

 
$
1.63

Diluted
 
$
1.40

 
$
0.92

 
$
3.23

 
$
1.62

 
 
 
 
 
 
 
 
 
Net Income Per Unrestricted Share:
 
 
 
 
 
 
 
 
Basic
 
$
1.42

 
$
0.92

 
$
3.26

 
$
1.63

Diluted
 
$
1.40

 
$
0.92

 
$
3.23

 
$
1.62

 
 
 
 
 
 
 
 
 
Weighted-average Outstanding (Shares in Thousands):
 
 
 
 
 
 
 
 
Unrestricted Shares - Basic
 
64,580.4

 
51,366.8

 
55,925.7

 
51,308.7

Unrestricted Shares and Equivalent Shares - Diluted
 
65,349.5

 
51,566.4

 
56,495.5

 
51,480.3

 
 
 
 
 
 
 
 
 
Dividends Paid to Shareholders Per Share
 
$
0.24

 
$
0.24

 
$
0.72

 
$
0.72



4


Unaudited business segment revenues for the three and nine months ended September 30, 2018 and 2017 are presented below.
 
 
Three Months Ended
 
Nine Months Ended
(Dollars in Millions)
 
Sep 30,
2018
 
Sep 30,
2017
 
Sep 30,
2018
 
Sep 30,
2017
REVENUES:
 
 
 
 
 
 
 
 
Property & Casualty Insurance:
 
 
 
 
 
 
 
 
Earned Premiums:
 
 
 
 
 
 
 
 
Personal Automobile
 
$
766.7

 
$
353.0

 
$
1,554.0

 
$
1,012.8

Homeowners
 
62.5

 
66.7

 
186.5

 
199.6

Other Personal
 
10.1

 
10.7

 
30.4

 
32.2

Total Personal
 
839.3

 
430.4

 
1,770.9

 
1,244.6

Commercial Automobile
 
55.9

 
13.1

 
80.6

 
38.5

Total Earned Premiums
 
895.2

 
443.5

 
1,851.5

 
1,283.1

Net Investment Income
 
34.0

 
27.8

 
79.4

 
72.5

Other Income
 
0.9

 
0.4

 
1.6

 
0.9

Total Property & Casualty Insurance
 
930.1

 
471.7

 
1,932.5

 
1,356.5

Life & Health Insurance:
 
 
 
 
 
 
 
 
Earned Premiums:
 
 
 
 
 
 
 
 
Life
 
95.2

 
94.5

 
284.3

 
285.6

Accident & Health
 
44.9

 
42.0

 
132.0

 
120.6

Property
 
17.6

 
18.2

 
53.0

 
54.8

Total Earned Premiums
 
157.7

 
154.7

 
469.3

 
461.0

Net Investment Income
 
50.5

 
55.9

 
157.9

 
163.8

Other Income
 
1.2

 
0.7

 
2.9

 
1.9

Total Life & Health Insurance
 
209.4

 
211.3

 
630.1

 
626.7

Total Segment Revenues
 
1,139.5

 
683.0

 
2,562.6

 
1,983.2

Income from Change in Fair Value of Equity Securities
 
11.0

 

 
12.1

 

Net Realized Gains on Sales of Investments
 
3.6

 
8.1

 
10.0

 
45.0

Net Impairment Losses Recognized in Earnings
 
(1.8
)
 
(2.9
)
 
(2.3
)
 
(10.5
)
Other
 
43.2

 
2.1

 
48.0

 
8.4

Total Revenues
 
$
1,195.5

 
$
690.3

 
$
2,630.4

 
$
2,026.1


5


KEMPER CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in Millions)
(Unaudited)



 
Sep 30,
2018
 
Dec 31,
2017
Assets:
 
 
 
Investments:
 
 
 
Fixed Maturities at Fair Value
$
6,108.6

 
$
5,382.7

Equity Securities at Fair Value
815.8

 
526.0

Equity Securities at Modified Cost
50.9

 

Equity Method Limited Liability Investments at Cost Plus Cumulative Undistributed Earnings
170.0

 
161.0

Fair Value Option Investments

 
77.5

Short-term Investments at Cost which Approximates Fair Value
688.5

 
235.5

Other Investments
412.8

 
422.2

Total Investments
8,246.6

 
6,804.9

Cash
92.8

 
45.7

Receivables from Policyholders
1,029.9

 
366.0

Other Receivables
243.1

 
194.3

Deferred Policy Acquisition Costs
447.4

 
365.3

Goodwill
1,091.2

 
323.0

Current Income Tax Assets
58.1

 
6.1

Other Assets
563.5

 
270.9

Total Assets
$
11,772.6

 
$
8,376.2

Liabilities and Shareholders’ Equity:
 
 
 
Insurance Reserves:
 
 
 
Life & Health
$
3,551.4

 
$
3,521.0

Property & Casualty
1,819.1

 
1,016.8

Total Insurance Reserves
5,370.5

 
4,537.8

Unearned Premiums
1,470.9

 
653.9

Deferred Income Tax Liabilities
40.4

 
14.8

Liabilities for Unrecognized Tax Benefits
4.5

 
8.1

Debt at Amortized Cost
1,123.7

 
592.3

Accrued Expenses and Other Liabilities
698.8

 
453.7

Total Liabilities
8,708.8

 
6,260.6

Shareholders’ Equity:
 
 
 
Common Stock
6.5

 
5.1

Paid-in Capital
1,661.3

 
673.1

Retained Earnings
1,365.1

 
1,243.0

Accumulated Other Comprehensive Income
30.9

 
194.4

Total Shareholders’ Equity
3,063.8

 
2,115.6

Total Liabilities and Shareholders’ Equity
$
11,772.6

 
$
8,376.2



6


Unaudited selected financial information for the Property & Casualty Insurance segment follows.
 
 
Three Months Ended
 
Nine Months Ended
(Dollars in Millions)
 
Sep 30,
2018
 
Sep 30,
2017
 
Sep 30,
2018
 
Sep 30,
2017
Results of Operations
Net Premiums Written
 
$
931.0

 
$
466.7

 
$
1,956.8

 
$
1,336.3

 
 
 
 
 
 
 
 
 
Earned Premiums
 
$
895.2

 
$
443.5

 
$
1,851.5

 
$
1,283.1

Net Investment Income
 
34.0

 
27.8

 
79.4

 
72.5

Other Income
 
0.9

 
0.4

 
1.6

 
0.9

Total Revenues
 
930.1

 
471.7

 
1,932.5

 
1,356.5

Incurred Losses and LAE related to:
 
 
 
 
 
 
 
 
Current Year:
 
 
 
 
 
 
 
 
Non-catastrophe Losses and LAE
 
644.2

 
313.1

 
1,325.7

 
924.5

Catastrophe Losses and LAE
 
19.7

 
29.8

 
69.6

 
128.2

Prior Years:
 
 
 
 
 
 
 
 
Non-catastrophe Losses and LAE
 
(3.5
)
 
1.6

 
4.9

 
23.0

Catastrophe Losses and LAE
 
(0.2
)
 
(1.2
)
 
(7.7
)
 
(4.4
)
Total Incurred Losses and LAE
 
660.2

 
343.3

 
1,392.5

 
1,071.3

Insurance Expenses
 
234.0

 
97.6

 
441.4

 
287.4

Other Expenses
 
1.7

 

 
1.7

 

Operating Income (Loss)
 
34.2

 
30.8

 
96.9

 
(2.2
)
Income Tax Benefit (Expense)
 
(6.0
)
 
(7.9
)
 
(17.5
)
 
7.9

Segment Net Operating Income
 
$
28.2

 
$
22.9

 
$
79.4

 
$
5.7

 
 
 
 
 
 
 
 
 
Ratios Based On Earned Premiums
Current Year Non-catastrophe Losses and LAE Ratio
 
71.9
 %
 
70.6
 %
 
71.5
 %
 
72.0
 %
Current Year Catastrophe Losses and LAE Ratio
 
2.2

 
6.7

 
3.8

 
10.0

Prior Years Non-catastrophe Losses and LAE Ratio
 
(0.4
)
 
0.4

 
0.3

 
1.8

Prior Years Catastrophe Losses and LAE Ratio
 

 
(0.3
)
 
(0.4
)
 
(0.3
)
Total Incurred Loss and LAE Ratio
 
73.7

 
77.4

 
75.2

 
83.5

Insurance Expense Ratio
 
26.1

 
22.0

 
23.8

 
22.4

Combined Ratio
 
99.8
 %
 
99.4
 %
 
99.0
 %
 
105.9
 %
 
 
 
 
 
 
 
 
 
Underlying Combined Ratio
Current Year Non-catastrophe Losses and LAE Ratio
 
71.9
 %
 
70.6
 %
 
71.5
 %
 
72.0
 %
Insurance Expense Ratio
 
26.1

 
22.0

 
23.8

 
22.4

Underlying Combined Ratio
 
98.0
 %
 
92.6
 %
 
95.3
 %
 
94.4
 %
 
 
 
 
 
 
 
 
 
Non-GAAP Measure Reconciliation
Underlying Combined Ratio
 
98.0
 %
 
92.6
 %
 
95.3
 %
 
94.4
 %
Current Year Catastrophe Losses and LAE Ratio
 
2.2

 
6.7

 
3.8

 
10.0

Prior Years Non-catastrophe Losses and LAE Ratio
 
(0.4
)
 
0.4

 
0.3

 
1.8

Prior Years Catastrophe Losses and LAE Ratio
 

 
(0.3
)
 
(0.4
)
 
(0.3
)
Combined Ratio as Reported
 
99.8
 %
 
99.4
 %
 
99.0
 %
 
105.9
 %
 
 
 
 
 
 
 
 
 

7


Unaudited selected financial information for the Life & Health Insurance segment follows.
 
 
Three Months Ended
 
Nine Months Ended
(Dollars in Millions)
 
Sep 30,
2018
 
Sep 30,
2017
 
Sep 30,
2018
 
Sep 30,
2017
Results of Operations
Earned Premiums
 
$
157.7

 
$
154.7

 
$
469.3

 
$
461.0

Net Investment Income
 
50.5

 
55.9

 
157.9

 
163.8

Other Income
 
1.2

 
0.7

 
2.9

 
1.9

Total Revenues
 
209.4

 
211.3

 
630.1

 
626.7

Policyholders’ Benefits and Incurred Losses and LAE
 
97.0

 
96.8

 
301.1

 
293.6

Insurance Expenses
 
79.4

 
78.5

 
232.7

 
233.3

Operating Profit
 
33.0

 
36.0

 
96.3

 
99.8

Income Tax Expense
 
(6.3
)
 
(12.5
)
 
(19.4
)
 
(34.3
)
Segment Net Operating Income
 
$
26.7

 
$
23.5

 
$
76.9

 
$
65.5

Use of Non-GAAP Financial Measures
Adjusted Consolidated Net Operating Income
Adjusted Consolidated Net Operating Income is an after-tax, non-GAAP financial measure computed by excluding from Income from Continuing Operations the after-tax impact of 1) income (loss) from change in fair value of equity securities, 2) net realized gains on sales of investments, 3) net impairment losses recognized in earnings related to investments, 4) acquisition related transaction, integration and other costs, 5) loss from early extinguishment of debt and 6) significant non-recurring or infrequent items that may not be indicative of ongoing operations. Significant non-recurring items are excluded when (a) the nature of the charge or gain is such that it is reasonably unlikely to recur within two years and (b) there has been no similar charge or gain within the prior two years. The most directly comparable GAAP financial measure is Income from Continuing Operations.
Kemper believes that Adjusted Consolidated Net Operating Income provides investors with a valuable measure of its ongoing performance because it reveals underlying operational performance trends that otherwise might be less apparent if the items were not excluded. Income (Loss) from Change in Fair Value of Equity Securities, Net Realized Gains on Sales of Investments and Net Impairment Losses Recognized in Earnings related to investments included in the Company’s results may vary significantly between periods and are generally driven by business decisions and external economic developments such as capital market conditions that impact the values of the Company’s investments, the timing of which is unrelated to the insurance underwriting process. Loss from Early Extinguishment of Debt is driven by the Company’s financing and refinancing decisions and capital needs, as well as external economic developments such as debt market conditions, the timing of which is unrelated to the insurance underwriting process. Acquisition Related Transaction, Integration and Other Costs may vary significantly between periods and are generally driven by the timing of acquisitions and business decisions which are unrelated to the insurance underwriting process. Significant non-recurring items are excluded because, by their nature, they are not indicative of the Company’s business or economic trends.

8


A reconciliation of Adjusted Consolidated Net Operating Income to Income from Continuing Operations for the three and nine months ended September 30, 2018 and 2017 is presented below.
 
 
Three Months Ended
 
Nine Months Ended
(Dollars in Millions) (Unaudited)
 
Sep 30,
2018
 
Sep 30,
2017
 
Sep 30,
2018
 
Sep 30,
2017
Adjusted Consolidated Net Operating Income
 
$
104.5

 
$
44.4

 
$
198.5

 
$
61.5

Net Income (Loss) From:
 
 
 
 
 
 
 
 
Income from Change in Fair Value of Equity Securities
 
8.7

 

 
9.6

 

Net Realized Gains on Sales of Investments
 
2.8

 
5.3

 
7.9

 
29.3

Net Impairment Losses Recognized in Earnings
 
(1.4
)
 
(1.9
)
 
(1.8
)
 
(6.8
)
Acquisition Related Transaction, Integration and Other Costs
 
(22.3
)
 

 
(30.8
)
 

Income from Continuing Operations
 
$
92.3

 
$
47.8

 
$
183.4

 
$
84.0

Diluted Adjusted Consolidated Net Operating Income Per Unrestricted Share
Diluted Adjusted Consolidated Net Operating Income Per Unrestricted Share is a non-GAAP financial measure computed by dividing Adjusted Consolidated Net Operating Income attributed to unrestricted shares by the weighted-average unrestricted shares and equivalent shares outstanding. The most directly comparable GAAP financial measure is Diluted Income from Continuing Operations Per Unrestricted Share.
A reconciliation of Diluted Adjusted Consolidated Net Operating Income Per Unrestricted Share to Diluted Income from Continuing Operations Per Unrestricted Share for the three and nine months ended September 30, 2018 and 2017 is presented below.
 
 
Three Months Ended
 
Nine Months Ended
(Unaudited)
 
Sep 30,
2018
 
Sep 30,
2017
 
Sep 30,
2018
 
Sep 30,
2017
Diluted Adjusted Consolidated Net Operating Income Per Unrestricted Share
 
$
1.59

 
$
0.85

 
$
3.49

 
$
1.19

Net Income (Loss) Per Unrestricted Share From:
 
 
 
 
 
 
 
 
Income from Change in Fair Value of Equity Securities
 
0.13

 

 
0.17

 

Net Realized Gains on Sales of Investments
 
0.04

 
0.10

 
0.14

 
0.56

Net Impairment Losses Recognized in Earnings
 
(0.02
)
 
(0.03
)
 
(0.03
)
 
(0.13
)
Acquisition Related Transaction and Integration Costs
 
(0.34
)
 

 
(0.54
)
 

Diluted Income from Continuing Operations Per Unrestricted Share
 
$
1.40

 
$
0.92

 
$
3.23

 
$
1.62

Book Value Per Share Excluding Net Unrealized Gains on Fixed Maturities
Book Value Per Share Excluding Net Unrealized Gains on Fixed Maturities is a ratio that uses a non-GAAP financial measure. It is calculated by dividing shareholders’ equity after excluding the after-tax impact of net unrealized gains on fixed income securities by total Common Shares Issued and Outstanding. Book Value Per Share is the most directly comparable GAAP financial measure. Kemper uses the trends in book value per share, excluding the after-tax impact of net unrealized gains on fixed income securities, in conjunction with book value per share to identify and analyze the change in net worth attributable to management efforts between periods. Kemper believes the non-GAAP financial measure is useful to investors because it eliminates the effect of items that can fluctuate significantly from period to period and are generally driven by economic developments, primarily capital market conditions, the magnitude and timing of which are not influenced by management. Kemper believes it enhances understanding and comparability of performance by highlighting underlying business activity and profitability drivers.

9


A reconciliation of the numerator used in the computation of Book Value Per Share Excluding Net Unrealized Gains on Fixed Maturities and Book Value Per Share at September 30, 2018 and December 31, 2017 is presented below.
(Dollars in Millions) (Unaudited)
 
Sep 30,
2018
 
Dec 31,
2017
Shareholders’ Equity Excluding Net Unrealized Gains on Fixed Maturities
 
$
2,927.6

 
$
1,830.4

Net Unrealized Gains on Fixed Maturities
 
136.2

 
285.2

Shareholders’ Equity
 
$
3,063.8

 
$
2,115.6

Underlying Combined Ratio
Underlying Combined Ratio is a non-GAAP financial measure that is computed by adding the current year non-catastrophe losses and LAE ratio with the insurance expense ratio. The most directly comparable GAAP financial measure is the combined ratio, which is computed by adding total incurred losses and LAE, including the impact of catastrophe losses and loss and LAE reserve development from prior years, with the insurance expense ratio. Kemper believes the underlying combined ratio is useful to investors and is used by management to reveal the trends in Kemper’s property and casualty insurance businesses that may be obscured by catastrophe losses and prior-year reserve development. These catastrophe losses may cause loss trends to vary significantly between periods as a result of their incidence of occurrence and magnitude, and can have a significant impact on incurred losses and LAE and the combined ratio. Prior-year reserve development is caused by unexpected loss development on historical reserves. Because reserve development relates to the re-estimation of losses from earlier periods, it has no bearing on the performance of the company’s insurance products in the current period. Kemper believes it is useful for investors to evaluate these components separately and in the aggregate when reviewing its underwriting performance. The underlying combined ratio should not be considered a substitute for the combined ratio and does not reflect the overall underwriting profitability of our business.
As Adjusted for Acquisition
As Adjusted for Acquisition amounts are non-GAAP financial measures. For three months ended September 30, 2018, as adjusted amounts are computed by subtracting the impact of purchase accounting adjustments from the comparable consolidated GAAP financial measure reported by Kemper. For the three months ended September 30, 2017, as adjusted amounts are computed by adding the historical results of Infinity reported on a GAAP basis to the comparable consolidated GAAP financial measure reported by Kemper. Per share amounts on an acquisition-adjusted basis for the three months ended September 30, 2017 are computed by adjusting the denominator used in the calculation of diluted net income per share by adding the number of shares issued by Kemper on July 2, 2018 in connection with the acquisition to the diluted weighted-average shares outstanding reported by Kemper on a GAAP basis for the three months ended September 30, 2017. The Company believes computing and presenting results on an adjusted basis are useful to investors and are used by management to provide meaningful and comparable year-over-year comparisons.

10


A reconciliation of the As Adjusted for Acquisition non-GAAP financial measures used in this press release to the comparable GAAP financial measure for the three months ended September 30, 2018 is presented below.
(Dollars in Millions, Except Per Share Amounts) (Unaudited)
 
Kemper Consolidated GAAP Financial Measure
 
Less Impact of Purchase Accounting Adjustments
 
As Adjusted for Acquisition
Net Income
 
$
92.2

 
$
(39.5
)
 
$
131.7

Net Income Per Share - Diluted
 
$
1.40

 
$
(0.61
)
 
$
2.01

Property & Casualty Insurance Segment:
 
 
 
 
 
 
Earned Premiums
 
$
895.2

 
$

 
$
895.2

Segment Net Income
 
$
28.2

 
$
(39.8
)
 
$
68.0

Non-standard Automobile:
 
 
 
 
 
 
Earned Premiums
 
$
655.3

 
$

 
$
655.3

A reconciliation of the As Adjusted for Acquisition non-GAAP financial measures used in this press release to the comparable GAAP financial measure for the three months ended September 30, 2017 is presented below.
(Dollars in Millions) (Unaudited)
 
Kemper Historical GAAP Financial Measure
 
Infinity Historical GAAP Financial Measure
 
As Adjusted for Acquisition
Net Income
 
$
47.7

 
$
15.0

 
$
62.7

Property & Casualty Insurance Segment:
 
 
 
 
 
 
Earned Premiums
 
$
443.5

 
$
345.0

 
$
788.5

Segment Net Income
 
$
22.9

 
$
16.7

 
$
39.6

Non-standard Automobile:
 
 
 
 
 
 
Earned Premiums
 
$
246.5

 
$
307.4

 
$
553.9

A computation of Diluted Net Income Per Share - As Adjusted for Acquisition for the three months ended September 30, 2017 is presented below.
(Dollars and Shares in Millions, Except Per Share Amounts) (Unaudited)
 
As Adjusted for Acquisition
Dollars in Millions
 
 
Net Income - As Adjusted for Acquisition
 
$
62.7

Less Income from Continuing Operations Attributed to Participating Awards - As Reported
 
0.4

Diluted Net Income Attributed to Unrestricted Shares - As Adjusted for Acquisition
 
$
62.3

Shares in Millions
 
 
Weighted-average Unrestricted Shares and Equivalent Shares Outstanding Assuming Dilution - As Reported
 
51.6

Shares Issued in Connection with Acquisition of Infinity
 
13.2

Weighted-average Unrestricted Shares and Equivalent Shares Outstanding Assuming Dilution - As Adjusted for Acquisition
 
64.8

In Dollars
 
 
Diluted Net Income Per Share - As Adjusted for Acquisition
 
$
0.96


11


Conference Call
Kemper will discuss its third quarter 2018 results in a conference call on Monday, November 5, at 4:15 p.m. Eastern (3:15 p.m. Central) Time. Kemper’s conference call will be accessible via the internet and by telephone. The phone number for Kemper’s conference call is 844.826.3041. To listen via webcast, register online at the investor section of kemper.com at least 15 minutes prior to the webcast to download and install any necessary software.
A replay of the call will be available online at the investor section of kemper.com.
More detailed financial information can be found in Kemper’s Investor Financial Supplement and Earnings Call Presentation for the third quarter of 2018, which is available at the investor section of kemper.com.
About Kemper
The Kemper family of companies is one of the nation’s leading insurers. With $11 billion in assets, Kemper is improving the world of insurance by offering personalized solutions for individuals, families and businesses. Through our businesses, Kemper: 
Offer insurance for auto, home, life, health and valuables
Services seven million policies 
Is represented by 30,000 agents and brokers
Employs over 7,800 associates dedicated to providing exceptional service 
Is licensed to sell insurance in 50 states and the District of Columbia
Learn more about Kemper.

Cautionary Statements Regarding Forward-Looking Information

This press release may contain or incorporate by reference information that includes or is based on forward-looking statements within the meaning of the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements give expectations or forecasts of future events, and can be identified by the fact that they relate to future actions, performance or results rather than strictly to historical or current facts.
Any or all forward-looking statements may turn out to be wrong, and, accordingly, readers are cautioned not to place undue reliance on such statements, which speak only as of the date of this press release. Forward-looking statements involve a number of risks and uncertainties that are difficult to predict, and are not guarantees of future performance. Among the general factors that could cause actual results and financial condition to differ materially from estimated results and financial condition are the possibility that the anticipated benefits and synergies from an acquisition may not be fully realized to the extent or within the time frame previously expected and other factors listed in periodic reports filed by Kemper with the Securities and Exchange Commission (the “SEC”). No assurances can be given that the results and financial condition contemplated in any forward-looking statements will be achieved or will be achieved in any particular timetable. Kemper assumes no obligation to publicly correct or update any forward-looking statements as a result of events or developments subsequent to the date of this press release. The reader is advised, however, to consult any further disclosures Kemper makes on related subjects in its filings with the SEC.
###

Contacts
 

Investors: Michael Marinaccio

312.661.4930 or investors@kemper.com
Media: Barbara Ciesemier
312.661.4521 or bciesemier@kemper.com

12
(Back To Top)

Section 3: EX-99.2 (EXHIBIT 99.2 INVESTOR SUPPLEMENT)

Exhibit
Exhibit 99.2


395635700_kemperlogocolorwebfinal.jpg


Investor Supplement
Third Quarter 2018
The financial statements and financial exhibits included herein are unaudited. These financial statements and exhibits should be read in conjunction with the Company’s periodic reports on Form 10-K, Form 10-Q and Form 8-K. The results of operations for interim periods should not be considered indicative of results to be expected for the full year.
Non-GAAP Financial Measures
This document contains non-GAAP financial measures to analyze the Company’s operating performance for the periods presented. Because the Company’s calculation of these measures may differ from similar measures used by other companies, investors should be careful when comparing the Company’s non-GAAP financial measures to those of other companies. For detailed disclosures on non-GAAP financial measures please refer to the “Definitions of Non-GAAP Financial Measures” on Page 33.
Caution Regarding Forward-Looking Statements
This Investor Supplement may contain or incorporate by reference information that includes or is based on forward-looking statements within the meaning of the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements give expectations or forecasts of future events, and can be identified by the fact that they relate to future actions, performance or results rather than strictly to historical or current facts.
Any or all forward-looking statements may turn out to be wrong, and, accordingly, readers are cautioned not to place undue reliance on such statements, which speak only as of the date of this press release. Forward-looking statements involve a number of risks and uncertainties that are difficult to predict, and are not guarantees of future performance. Among the general factors that could cause actual results and financial condition to differ materially from estimated results and financial condition are those listed in periodic reports filed by Kemper with the Securities and Exchange Commission (the “SEC”). No assurances can be given that the results and financial condition contemplated in any forward-looking statements will be achieved or will be achieved in any particular timetable. Kemper assumes no obligation to publicly correct or update any forward-looking statements as a result of events or developments subsequent to the date of this 2018 Investor Supplement. The reader is advised, however, to consult any further disclosures Kemper makes on related subjects in its filings with the SEC.


    




Kemper Corporation
Investor Supplement
Third Quarter 2018
Table of Contents
 
 
 
 
Page
Consolidated Financial Highlights
3
Consolidated Statements of Operations
4
Consolidated Balance Sheets
5
Consolidated Statements of Cash Flows
6-7
Capital Metrics
8
Debt Outstanding and Ratings
9
Segment Summary Results:
 
Revenues
10
Operating Profit (Loss)
11
Net Operating Income (Loss)
11
Earned Premiums by Product
12
Net Investment Income by Segment
12
Catastrophe Frequency and Severity
13
Property & Casualty Insurance Segment - Results of Operations and Selected Financial Information
14-15
Property & Casualty Insurance Segment - Results of Operations and Selected Financial Information by Product:
 
Preferred Personal Automobile Insurance
16
Non-standard Personal Automobile Insurance
17
Total Personal Automobile Insurance
18
Commercial Automobile Insurance
19
Total Automobile Insurance
20
Homeowners Insurance
21
Other Personal Lines
22
Life & Health Insurance Segment - Results of Operations and Selected Financial Information
23
Life Insurance
24
Accident and Health Insurance
24
Property Insurance
25
Insurance Expenses and Interest and Other Expenses
26
Details of Investment Performance
27
Details of Invested Assets
28-29
Investment Concentration
30
Municipal Bond Securities
31
Investments in Limited Liability Companies and Limited Partnerships
32
Definitions of Non-GAAP Financial Measures
33-35
As Adjusted - Consolidated Statement of Operations
36
As Adjusted Property & Casualty Insurance Segment Information
37
As Adjusted Non-standard Personal Automobile Insurance
38
As Adjusted Commercial Automobile Insurance
39
 




Kemper Corporation
Consolidated Financial Highlights
(Dollars in Millions, Except Per Share Amounts)
(Unaudited)
 
Three Months Ended
 
Nine Months Ended
 
Sep 30,
2018
 
Jun 30,
2018
 
Mar 31,
2018
 
Dec 31,
2017
 
Sep 30,
2017
 
Jun 30,
2017
 
Mar 31,
2017
 
Sep 30,
2018
 
Sep 30,
2017
For Period Ended
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Earned Premiums
$
1,052.9

 
$
658.1

 
$
609.8

 
$
605.9

 
$
598.2

 
$
582.5

 
$
563.4

 
$
2,320.8

 
$
1,744.1

Net Investment Income
92.0

 
78.4

 
79.2

 
82.6

 
85.9

 
77.1

 
81.6

 
249.6

 
244.6

Other Income
37.8

 
1.2

 
1.2

 
1.1

 
1.0

 
1.0

 
0.9

 
40.2

 
2.9

Income from Change in Fair Value of Equity Securities
11.0

 
0.4

 
0.7

 

 

 

 

 
12.1

 

Net Investment Gains (Losses)
1.8

 
3.8

 
2.1

 
7.7

 
5.2

 
23.8

 
5.5

 
7.7

 
34.5

Total Revenues
$
1,195.5

 
$
741.9

 
$
693.0

 
$
697.3

 
$
690.3

 
$
684.4

 
$
651.4

 
$
2,630.4

 
$
2,026.1

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Adjusted Consolidated Net Operating Income (Loss) 1
$
104.5

 
$
36.5

 
$
57.5

 
$
31.0

 
$
44.4

 
$
21.0

 
$
(3.9
)
 
$
198.5

 
$
61.5

Income (Loss) from Continuing Operations
$
92.3

 
$
37.5

 
$
53.6

 
$
35.9

 
$
47.8

 
$
36.6

 
$
(0.4
)
 
$
183.4

 
$
84.0

Net Income (Loss)
$
92.2

 
$
37.6

 
$
53.8

 
$
36.9

 
$
47.7

 
$
36.6

 
$
(0.3
)
 
$
183.6

 
$
84.0

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Per Unrestricted Common Share Amounts:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Basic:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Adjusted Consolidated Net Operating Income (Loss) 1
$
1.61

 
$
0.70

 
$
1.11

 
$
0.60

 
$
0.85

 
$
0.41

 
$
(0.08
)
 
$
3.53

 
$
1.19

Income (Loss) from Continuing Operations
$
1.42

 
$
0.73

 
$
1.03

 
$
0.69

 
$
0.92

 
$
0.71

 
$
(0.01
)
 
$
3.26

 
$
1.63

Net Income (Loss)
$
1.42

 
$
0.73

 
$
1.03

 
$
0.71

 
$
0.92

 
$
0.71

 
$
(0.01
)
 
$
3.26

 
$
1.63

Diluted:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Adjusted Consolidated Net Operating Income (Loss) 1
$
1.59

 
$
0.70

 
$
1.10

 
$
0.60

 
$
0.85

 
$
0.41

 
$
(0.08
)
 
$
3.49

 
$
1.19

Income (Loss) from Continuing Operations
$
1.40

 
$
0.73

 
$
1.02

 
$
0.69

 
$
0.92

 
$
0.71

 
$
(0.01
)
 
$
3.23

 
$
1.62

Net Income (Loss)
$
1.40

 
$
0.73

 
$
1.02

 
$
0.71

 
$
0.92

 
$
0.71

 
$
(0.01
)
 
$
3.23

 
$
1.62

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Dividends Paid to Shareholders Per Share
$
0.24

 
$
0.24

 
$
0.24

 
$
0.24

 
$
0.24

 
$
0.24

 
$
0.24

 
$
0.72

 
$
0.72

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
At Period End
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Assets
$
11,772.6

 
$
8,840.5

 
$
8,371.0

 
$
8,376.2

 
$
8,301.0

 
$
8,211.4

 
$
8,306.8

 
 
 
 
Insurance Reserves
$
5,370.5

 
$
4,603.2

 
$
4,539.4

 
$
4,537.8

 
$
4,478.3

 
$
4,466.7

 
$
4,473.4

 
 
 
 
Debt
$
1,123.7

 
$
951.8

 
$
592.3

 
$
592.3

 
$
592.2

 
$
592.1

 
$
751.8

 
 
 
 
Shareholders’ Equity
$
3,063.8

 
$
2,045.7

 
$
2,063.8

 
$
2,115.6

 
$
2,082.4

 
$
2,033.4

 
$
1,983.6

 
 
 
 
Shareholders’ Equity Excluding Goodwill
$
1,972.6

 
$
1,722.7

 
$
1,740.8

 
$
1,792.6

 
$
1,759.4

 
$
1,710.4

 
$
1,660.6

 
 
 
 
Common Shares Issued and Outstanding (In Millions)
64.738

 
51.559

 
51.533

 
51.462

 
51.448

 
51.294

 
51.295

 
 
 
 
Book Value Per Share2
$
47.33

 
$
39.68

 
$
40.05

 
$
41.11

 
$
40.48

 
$
39.64

 
$
38.67

 
 
 
 
Book Value Per Share Excluding Goodwill1,2
$
30.47

 
$
33.41

 
$
33.78

 
$
34.83

 
$
34.20

 
$
33.35

 
$
32.37

 
 
 
 
Book Value Per Share Excluding Net Unrealized Gains on Fixed Maturities1,2
$
45.22

 
$
36.85

 
$
36.35

 
$
35.57

 
$
35.87

 
$
35.13

 
$
34.81

 
 
 
 
Debt to Total Capitalization2
26.8
%
 
31.8
%
 
22.3
%
 
21.9
%
 
22.1
%
 
22.6
%
 
27.5
%
 
 
 
 
Rolling 12 Months Return on 5-point Average Shareholders Equity2,3
9.7
%
 
8.5
%
 
8.5
%
 
5.9
%
 
5.7
%
 
2.5
%
 
0.9
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1 Non-GAAP Measure. See page 33 for definition.
 
 
 
 
2 See Capital Metrics on page 8 for detail calculations.
 
 
 
 
3 Rolling 12 Months Return on 5-point Average Shareholders Equity is calculated by taking the last 12 months of Net Income (Loss) divided by the 5-point average Shareholders’ Equity. The 5-point Average Shareholders’ Equity is calculated by using a 5-point quarter average of Shareholders’ Equity for the 12 month period.
 

Page 3


Kemper Corporation
Consolidated Statements of Operations
(Dollars in Millions, Except Per Share Amounts)
 (Unaudited)
 
Three Months Ended
 
Nine Months Ended
 
Sep 30,
2018
 
Jun 30,
2018
 
Mar 31,
2018
 
Dec 31,
2017
 
Sep 30,
2017
 
Jun 30,
2017
 
Mar 31,
2017
 
Sep 30,
2018
 
Sep 30,
2017
Revenues:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Earned Premiums
$
1,052.9

 
$
658.1

 
$
609.8

 
$
605.9

 
$
598.2

 
$
582.5

 
$
563.4

 
$
2,320.8

 
$
1,744.1

Net Investment Income
92.0

 
78.4

 
79.2

 
82.6

 
85.9

 
77.1

 
81.6

 
249.6

 
244.6

Other Income
37.8

 
1.2

 
1.2

 
1.1

 
1.0

 
1.0

 
0.9

 
40.2

 
2.9

Income from Change in Fair Value of Equity Securities
11.0

 
0.4

 
0.7

 

 

 

 

 
12.1

 

Net Realized Gains on Sales of Investments
3.6

 
3.8

 
2.6

 
11.5

 
8.1

 
26.4

 
10.5

 
10.0

 
45.0

Other-than-temporary Impairment Losses:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Other-than-temporary Impairment Losses
(1.8
)
 

 
(0.5
)
 
(3.7
)
 
(2.9
)
 
(2.6
)
 
(5.2
)
 
(2.3
)
 
(10.7
)
Portion of Losses Recognized in Other Comprehensive Income

 

 

 
(0.1
)
 

 

 
0.2

 

 
0.2

Net Impairment Losses Recognized in Earnings
(1.8
)
 

 
(0.5
)
 
(3.8
)
 
(2.9
)
 
(2.6
)
 
(5.0
)
 
(2.3
)
 
(10.5
)
Total Revenues
1,195.5

 
741.9

 
693.0

 
697.3