Kemper Corporation (NYSE:KMPR) Q3 2015 Earnings Conference Call - Final Transcript

Nov 06, 2015 • 11:00 am ET


Kemper Corporation (NYSE:KMPR) Q3 2015 Earnings Conference Call - Final Transcript


Loading Event

Loading Transcript


Good morning, ladies and gentlemen and welcome to Kemper's Third Quarter 2015 Earnings Conference Call. My name is Jonathon and I will be your coordinator today. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session and instructions will follow at that time. As a reminder this conference call is being recorded for replay purposes.

I would now like to introduce your host for today's conference Ms. Diana Hickert-Hill, VP, IR and Corporate Identity. Ms. Hickert-Hill, you may begin.

Diana Hickert-Hill

Thank you, operator. Good morning, everyone and thank you for joining us. This morning you will hear from three of our business executives, starting with Don Southwell, Kemper's Chairman, President and CEO; followed by Denise Lynch, Kemper's Property & Casualty Group Executive and Frank Sodaro, Kemper's SVP and CFO.

We will make a few opening remarks to provide context around our third quarter results. We will then open up the call for a question-and-answer session. During this interactive portion of the call, our presenters will be joined by John Boschelli, Kemper's SVP and CIO.

After the markets closed yesterday, we issued our press release and financial supplements. In addition, we filed our Form 10-Q with the SEC. You can find these documents on the Investor section of our website,

(Forward-Looking Cautionary Statements)

This morning's discussion includes non-GAAP financial measures that we believe may be meaningful to investors and our supplement and earnings release, we defined and reconciled non-GAAP financial measures to GAAP where required in accordance with SEC rules. And finally, all comparative references will be to the third quarter of 2014 unless we state otherwise.

Now, I will turn the call over to Don.

Don Southwell

Thank you, Diana. Good morning, everyone and thank you for joining us today. Overall, we had a solid third quarter and I'm pleased with the progress we're making. Key Property & Casualty legacy trends are improving and we are getting nice growth from the Alliance United acquisition. While we know we have more work to do, it is nice to see improvement in key areas. This morning, I'll begin our review by discussing our Life & Health segment results and our investment portfolio performance. Denise will update you on the Property & Casualty segment, and Frank will cover the financials, capital and liquidity, then I'll wrap up.

In total, Kemper earned $38 million of net income. Total revenues were 615 million, up 76 million, as we benefited from added volume from the recent Alliance United acquisition. In the Life & Health segment, we had another solid quarter with stable trends. We earned $24 million, about a 3 million improvement primarily driven by higher investment earnings.

Revenues were 206 million, up 4 million with a 6 million increase in net investment income. Kemper Home Service Companies continue to benefit from our field office consolidation efforts. Production on a per agent basis is up about 10%. Not only does this increase agent pay, but it also helps agent retention and recruiting,