Kemper Pegs Cat Losses Between $20-30 Million For Q3
Kemper Pegs Cat Losses Between $20-30 Million For Q3
According to Kemper Corporation, its Q3 2022 results would likely include pre-tax disaster losses of between $25 million and $30 million, mostly due to Hurricane Ian.
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The business mentions that it doesn’t anticipate recovering any of these losses through its reinsurance plans. It also does not account for unfavorable prior-year development.
Compared to Q2 of 2021, when Kemper reported a net loss of $62.6 million, Q2 of 2022 saw a loss of $74.7 million.
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 Pegs Cat Losses Between $20-30 Million For Q3
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.
ALSO, READ AM Best Downgrades Kemper On Earnings Deterioration
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.
ALSO, READ Hurricane Ian Private Insurance Market Loss Nearly $63 Billion -KCC
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.
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