Back to top

Analyst Blog

Kemper Corporation (KMPR - Snapshot Report) foresees pre-tax loss stemming from severe storms in April and May. The multiline insurer estimates pre-tax catastrophe losses between $40 million to $50 million in the second quarter of 2014.

The losses stemmed from severe storms, particularly from wind and hailstorms occurred between May 18 and May 23. The storms in turn affected policyholders in Montana, Pennsylvania, Illinois, South Carolina and North Carolina.

However, Kemper does not expect its catastrophe reinsurance program aid it recover any of these losses. The Zacks Consensus Estimate for the second quarter is currently pegged at 54 cents, which also translate into a year-over-year decline of 2.4%.

Kemper Corporation, in the first quarter, suffered due to higher catastrophe losses. The bottom line missed the Zacks Consensus Estimate and deteriorated from the year-ago earnings due to lower net investment income, higher catastrophe losses and increased expenses. Net operating income of the Property & Casualty Insurance segment was affected by catastrophe losses that increased $4.7 million. This combined with other deterrents lowered income by about 50%. Combined ratio decreased 210 basis points in the last quarter.

Dismal first-quarter earnings were also a drag on the Zacks Consensus Estimate as most of the analysts moved south in the last 30 days.  It declined 8% to $2.36 for 2014 while fell 1.4% to $2.75 for 2015.

Kemper currently carries a Zacks Rank #4 (Sell). Some better-ranked multi-line insurers include Horace Mann Educators Corp. (HMN - Snapshot Report), Old Republic International Corporation (ORI - Snapshot Report) and Radian Group Inc. (RDN - Snapshot Report). While Horace Mann and Old Republic International sport a Zacks Rank #1 (Strong Buy), Radian Group carries a Zacks Rank #2 (Buy).

Please login to or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research


Are you a new Zacks Member or a visitor to

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
UTD THERAPE… UTHR 117.83 +28.51%
TRIQUINT SE… TQNT 20.67 +6.52%
RF MICRO DE… RFMD 12.47 +6.04%
VASCO DATA… VDSI 14.77 +4.68%
BANCO DO BR… BDORY 15.53 +3.95%