“Our Life and Health segment delivered another quarter of solid performance, despite the low interest rate environment. The Reserve National business continued its shift to products that are less impacted by national health care reform,” added Southwell.“On the capital front, we repurchased $20 million of common stock in the third quarter. In addition, we generated $50 million of realized gains, taking advantage of attractive pricing for tax-exempt municipal securities. As we announced earlier in the quarter, we are evaluating strategic options for the Kemper Direct segment and are on track to complete this evaluation by year-end,” concluded Southwell.
- Kemper Preferred filed for overall rate increases of 6 percent in personal auto and nearly 9 percent in homeowners and continued to take actions to reduce exposures in the highest catastrophe prone areas.
- Kemper Specialty grew commercial automobile earned premiums 9 percent over third quarter 2011 through product enhancements and better agency engagement. This marks the third consecutive quarter of growth in this line of business.
- Kemper Home Service Companies continued its planned dwelling run-off; policies in force are down 9 percent from approximately 51,000 policies at the beginning of the year. Home Service expects to reduce dwelling policies in force an additional 11 percent by year-end.
- Reserve National reported stable quarterly accident and health earned premiums of $34.0 million, which included a 48 percent increase in earned premiums on its expanded supplemental product offerings, offsetting a 16 percent anticipated decrease in its hospitalization products.