Kemper ended the quarter with a book value per share of $37.78, and a book value per share excluding unrealized gains on fixed maturities of $31.19, up from $36.42 and $30.19, respectively, at the end of the second quarter.
At the end of the third quarter, Kemper Corporation held cash and investments of $214.7 million, and its $325 million revolving line of credit was undrawn.
Total revenues were $645.6 million for the third quarter of 2012, compared to $592.8 million in 2011, driven by net realized gains on sales of $50.9 million in the current quarter, compared to net realized losses on sales of $4.2 million in 2011. The company took advantage of attractive pricing and sold $320.1 million of tax-exempt municipal securities for tax planning and other portfolio management purposes.Earned premiums were $527.3 million for the third quarter of 2012, compared to $543.0 million in 2011. Earned premiums decreased predominantly from planned reductions at Kemper Direct, which declined by $14.1 million. Net investment income was $70.4 million in the third quarter of 2012, an $11.8 million increase from 2011, driven by $13.1 million lower net investment losses from equity method investments. The investment portfolio generated a pre-tax equivalent annualized book yield of 5.3 percent for the third quarter of 2012. Segment Results Unless otherwise noted, (i) the segment results discussed below are presented on an after-tax basis, (ii) prior year development includes both catastrophe and non-catastrophe losses, (iii) catastrophe losses exclude the impact of prior year development and (iv) underlying loss ratio includes loss and loss adjustment expenses. The impact of current year development is included in the underlying combined ratio. Current year development represents prior quarter development for a given current accident year.
|Three Months Ended||Nine Months Ended|
|(Dollars in Millions) (Unaudited)||Sep 30,2012||Sep 30,2011||Sep 30,2012||Sep 30,2011|
|Segment Net Operating Income (Loss):|
|Life and Health Insurance||19.2||19.7||66.5||67.7|
|Total Segment Net Operating Income||31.8||15.4||76.3||42.4|
|Corporate and Other Net Operating Loss||(7.2||)||(8.3||)||(19.1||)||(19.4||)|
|Consolidated Net Operating Income||24.6||7.1||57.2||23.0|
|Net Income (Loss) From:|
|Net Realized Gains (Losses) on Sales of Investments||33.0||(2.7||)||38.9||18.0|
|Net Impairment Losses Recognized in Earnings||(2.0||)||(3.3||)||(2.6||)||(4.3||)|
|Income from Continuing Operations||$||55.6||$||1.1||$||93.5||$||36.7|