Kemper Corporation Reports Third Quarter 2016 Results

Kemper Corporation (NYSE: KMPR) reported today a net loss of $16.3 million, or $0.32 per diluted share, for the third quarter of 2016, compared to net income of $37.9 million, or $0.73 per share, for the third quarter of 2015. Consolidated net operating loss 1 was $20.4 million, or $0.40 per diluted share, for the third quarter of 2016, compared to net operating income of $36.6 million, or $0.70 per share, for the third quarter of 2015. Net operating results decreased primarily from a $50.6 million after-tax charge related to the Life & Health voluntary outreach efforts announced earlier, Alliance United's performance, higher catastrophe losses and lower prior year favorable reserve development, partially offset by improved Property & Casualty underlying loss results.
   
Three Months Ended Nine Months Ended
(Dollars in Millions, Except Per Share Amounts) (Unaudited) Sep 30,2016   Sep 30,2015 Sep 30,2016   Sep 30,2015
Consolidated Net Operating Income (Loss) 1 $ (20.4 ) $ 36.6 $ (16.4 ) $ 65.1
Income (Loss) from Continuing Operations (18.3 ) 38.0 (16.4 ) 78.9
Net Income (Loss) (16.3 ) 37.9 (14.4 ) 81.1
 
Impact of Catastrophe Losses and Related Loss Adjustment Expense (LAE) on Net Income (Loss) $ (8.2 ) $ (3.1 ) $ (66.6 ) $ (34.0 )
 
Diluted Net Income (Loss) Per Share From:
Consolidated Net Operating Income (Loss) 1 $ (0.40 ) $ 0.70 $ (0.31 ) $ 1.26
Continuing Operations (0.36 ) 0.73 (0.31 ) 1.52
Net Income (Loss) (0.32 ) 0.73 (0.27 ) 1.56
 
Impact of Catastrophe Losses and Related LAE on Net Income (Loss) Per Share $ (0.16 ) $ (0.06 ) $ (1.29 ) $ (0.65 )

1 Consolidated net operating income (loss) is an after-tax, non-GAAP financial measure. See "Use of Non-GAAP Financial Measures" for additional information.

"The biggest driver of Kemper's change in results was the charge we took in our life insurance lines, as we initiated our voluntary outreach efforts. We are pleased to have defined our pathway forward and are excited to concentrate on improving the fundamentals of these businesses," said Joseph P. Lacher, Jr., Kemper's President and Chief Executive Officer.

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