5 Top-Rated Dividend Stocks With Double-Digit Upside Kemper (NYSE:KMPR) reported a second-quarter net loss of $464.8 million, or $7.90 per share, as a $460 million non-cash goodwill impairment in its specialty auto segment weighed on GAAP results.
Adjusted consolidated net operating income was $26.3 million, or $0.45 per share, as the insurer cited sequential improvement in underlying operating performance
President and Chief Executive Officer Steve McAnena, who joined the company two months ago, said restoring profitability is Kemper’s primary priority, with growth to be pursued only where it can be achieved profitably. “Profitability is a prerequisite for growth, and as such, growth will be earned, not chased,” McAnena said. The company said its underlying operating performance improved through property and casualty underwriting results, expense discipline and stable earnings from its life insurance business. Net investment income totaled $105 million during the quarter, while trailing 12-month cash flow was $434 million.
Goodwill Impairment Drives Reported Loss Chief Financial Officer Brad Camden said the goodwill impairment was triggered by recent operational challenges and a subsequent decline in Kemper’s share price, requiring a quantitative assessment under GAAP. The charge was based in part on the company’s second-quarter share price and reduced goodwill in the Specialty Property & Casualty segment to about $570 million. Camden said the impairment does not affect the company’s ongoing operations, cash-generating ability, statutory capital, holding-company liquidity or compliance with debt and revolving credit covenants.