Kemper Corporation KMPR estimates second-quarter, 2016 catastrophe loss of $52 million. The insurer is unlikely to recover any of these losses from its catastrophe reinsurance program.
The hail storm in north Texas on Apr 11, which severely affected the company’s policyholders in the area, was primarily responsible for the consolidated loss. Several other storms also added to the losses incurred in the quarter.
The Zacks Consensus Estimate for the second quarter is currently pegged at 8 cents, which translates to a year-over-year decline of 85%. We expect the estimates to move down as analysts incorporate the impact of catastrophe loss.
In the last quarter too, Kemper had to incur a loss of $37.5 million which limited bottom line growth. The company’s combined ratio also deteriorated 980 basis points year over year.
Kemper is scheduled to announce its second-quarter results on Aug 4. Our proven model does not conclusively show that the company will beat on earnings. This is because the company holds a favorable Zacks Rank #2 (Buy) but an Earnings ESP of 0.00% makes prediction difficult.
KEMPER CORP Price
KEMPER CORP Price | KEMPER CORP Quote
Recently, many of the insurers have posted their catastrophe loss estimates for the second quarter. While Validus Holdings, Ltd. VR estimates its catastrophe loss to be around $60 million, Chubb Limited CB anticipates its loss to be approximately $320 million and XL Group plc XL estimates the loss to be around $240 million.
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