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Unitrin Inc. Reports Operating Results (10-Q)
Posted by: gurufocus (IP Logged)
Date: August 6, 2012 05:27PM

Unitrin Inc. (UTR) filed Quarterly Report for the period ended 2012-06-30. Kemper Corp has a market cap of $1.61 billion; its shares were traded at around $0 with a P/E ratio of 11.6 and P/S ratio of 0.6. The dividend yield of Kemper Corp stocks is 3.5%.



Highlight of Business Operations:

development. Underlying losses and LAE as a percentage of earned premiums were 68.0% and 68.7% for the six and three months ended June 30, 2012, respectively, compared to 67.3% and 65.9% for the same periods in 2011. Kemper Preferred continues to take actions intended to improve profitability including additional rate increases, enhanced pricing segmentation and other underwriting actions.

The Kemper Direct segment reported an Operating Loss of $8.5 million for the six months ended June 30, 2012, compared to $15.8 million for the same period in 2011. Operating results improved in the Kemper Direct segment for the six months ended June 30, 2012, compared to 2011, due primarily to higher levels of favorable reserve development, lower levels of unprofitable business, partially offset by lower Net Investment Income and higher incurred catastrophe losses and LAE (excluding development).

The Kemper Direct segment reported an Operating Loss of $5.5 million for the three months ended June 30, 2012, compared to $8.3 million for the same period in 2011. Operating results improved in the Kemper Direct segment for the three months ended June 30, 2012, compared to 2011, due primarily to lower levels of unprofitable business, higher levels of favorable reserve development and lower incurred catastrophe losses and LAE (excluding development), partially offset by lower Net Investment Income and higher underlying losses and LAE as a percentage of earned premiums.

Earned Premiums in the Life and Health Insurance segment decreased by $3.0 million and $1.6 million for the six and three months ended June 30, 2012, respectively, compared to the same periods in 2011, due primarily to lower life insurance and property insurance earned premiums. Earned premiums on life insurance decreased by $1.5 million and $0.6 million for the six and three months ended June 30, 2012, respectively, compared to the same periods in 2011, due primarily to lower volume of insurance. Earned premiums on property insurance decreased by $1.7 million and $0.9 million in 2012 for the six and three months ended June 30, 2012, respectively, compared to the same periods in 2011, due primarily to lower volume of insurance from the run-off and, in certain geographical areas, the non-renewal of dwelling coverage. Earned premiums on accident and health insurance was relatively flat for both the six and three months ended June 30, 2012, compared to the same periods in 2011, due primarily to higher volume of supplemental health insurance products and higher average premium, partially offset by lower volume of insurance resulting from the suspension of sales of certain health insurance products described below and, to a lesser extent, lower volume of Medicare supplement insurance.

Approximately 40%, or $33.1 million, of the Life and Health Insurance segment s accident and health insurance earned premiums for the six months ended June 30, 2012 were derived from health insurance products that may be adversely impacted by the Patient Protection and Affordable Care Act (“PPACA”), compared to approximately 44%, or $36.3 million, for the same period in 2011. At the end of 2011, Reserve National Insurance Company (“Reserve National”) suspended sales of such affected health insurance products. During 2011, Reserve National also began transitioning its sales to other health insurance products that are not expected to be as severely impacted by PPACA. There can be no assurance that the transition will fully offset the impact from suspending sales of the affected health insurance products.

Read the The complete Report



Stocks Discussed: UTR,
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