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KEMPER REPORTS 1993 SECOND-QUARTER OPERATING EARNINGS OF $13.7 MILLION

 LONG GROVE, Ill., Aug. 3 /PRNewswire/ -- Kemper Corp. (NYSE: KEM) today reported operating earnings from continuing operations of $13.7 million, or $.18 per share, for the quarter ended June 30, compared with $11.4 million, or $.24 per share, for the same period in 1992.
 "The improvement in the fundamental operating results of our core asset management, life insurance and securities brokerage operations points to the earnings potential of these businesses," said David B. Mathis, chairman and chief executive officer of Kemper Corp.
 Continuing operations reported a net loss of $24.7 million, or $.59 per share, for the second quarter of 1993, compared with a loss of $13.5 million, or $.27 per share, in the year-ago period. Including discontinued operations, the company reported a net loss of $26.6 million, or $.63 per share, for the second quarter, compared with a net loss of $10.7 million, or $.22 per share, in second-quarter 1992. Charges related to the provision for real estate-related losses and added legal reserves were responsible for the 1993 second-quarter loss.
 The company's realized investment loss from continuing operations totaled $38.4 million in the second quarter of 1993, compared with a loss of $24.9 million in the second quarter of 1992. Realized investment gains (after write-downs) of $30.3 million in the 1993 second quarter were more than offset by after-tax charges of $68.7 million related to increases in the company's provision for real estate-related losses due to declining valuations in the real estate portfolio and the transfer of certain assets to real estate owned.
 "We are very pleased to have closed the exchange of our reinsurance and risk management subsidiaries," Mathis said. In the Aug. 2, 1993 exchange, Kemper Corp. received 17.4 million shares of Kemper Corp. common stock previously owned by Lumbermens Mutual Casualty Company, reducing Lumbermens' ownership in Kemper common stock to approximately 4 percent. The transaction was valued at $610.2 million, resulting in a gain of approximately $172.3 million. The shares received from Lumbermens become treasury shares, reducing Kemper Corp.'s book value by $437.9 million. Book value per common share increases approximately $5.46, or 15.5 percent, as a result of this transaction.
 Revenue for the second quarter of 1993 totaled $404.9 million, compared with $447.4 million in the same period last year. The decline is primarily due to lower investment income and higher realized investment losses.
 SIX-MONTH RESULTS
 For the first half of 1993, Kemper reported operating earnings from continuing operations of $24.1 million, or $.35 per share, compared with $16.9 million, or $.35 per share, in the year-ago period. The 1993 results include charges of $11.9 million related to the company's adoption of new accounting rules for deferred income taxes. The 1992 results reflect charges of $14.5 million related to the company's adoption of new accounting rules for retiree health benefits.
 For the first six months of 1993, continuing operations reported a net loss of $41.5 million, or $.98 per share, compared with a loss of $18.1 million, or $.37 per share, in the first half of 1992. These results include after-tax realized investment losses of $65.6 million and $35.0 million in the first six months of 1993 and 1992, respectively.
 Including discontinued operations, the company reported a net loss of $14.4 million, or $.43 per share, for the first half of 1993, compared with a net loss of $8.6 million, or $.18 per share, for the first six months of 1992.
 Revenue for the first half of 1993 totaled $843.6 million, compared with $933.1 million in the same period last year.
 ASSET MANAGEMENT
 The asset management segment reported operating earnings of $46.0 million, or $.93 per share, for the first six months of 1993, compared with $43.6 million, or $.90 per share, for the year-ago period. The 1993 results include a benefit of $.9 million from changes in accounting principles, while 1992 results reflect charges of $2.0 million from changes in accounting principles.
 Revenue was flat in the first half of 1993 at $301.1 million, compared with $300.3 million in the year-ago period.
 Assets under management rose to $70.7 billion at June 30, 1993, from $69.3 billion at Dec. 31, 1992 and $67.6 billion at June 30, 1992.
 LIFE INSURANCE
 The life insurance segment reported operating earnings of $40.4 million, or $.82 per share, for the first half of 1993, compared with $24.3 million, or $.50 per share, for the year-ago period. The 1993 operating results include a benefit of $2.7 million resulting from changes in accounting principles, while the 1992 results reflect charges of $1.3 million for changes in accounting principles.
 The improvement in operating earnings reflects Kemper's strategies of focusing on variable annuities and reducing crediting rates on fixed-rate annuities. A 22 percent reduction in operating expenses, primarily due to the integration of the segment's two life insurance companies, also contributed to the earnings improvement.
 The segment reported net income of $33.6 million, or $.68 per share, for the first half of 1993, compared with a loss of $10.8 million, or $.22 per share, for the year-ago period. In addition to the improvement in operating earnings, the segment had realized investment losses of $6.9 million in the first six months of 1993, down from losses of $35.1 million in the same period of 1992.
 Revenue for the first six months of 1993 totaled $359.0 million, compared with $343.8 million in the year-ago period. Reflecting the company's strategy of reducing sales of fixed annuities, total sales were $420.4 million in the first half of 1993 versus $557.9 million in the first six months of 1992.
 SECURITIES BROKERAGE
 The securities brokerage operations reported an operating loss of $11.7 million, or $.24 per share, for the first six months of 1993, compared with a loss of $27.3 million, or $.56 per share, in the year-ago period. The 1993 loss is attributable to charges of $19.8 million related to an increase in the operations' legal reserves and $5.5 million related to changes in accounting principles. The 1992 results include charges of $13.2 million related to an increase in legal reserves, $6.0 million for federal income tax adjustments and $10.0 million related to changes in accounting principles.
 Without these charges, the securities brokerage segment's operating results increased significantly to $13.6 million during the first six months of 1993 from $1.9 million in the year-ago period. The improvement reflects the segment's participation in the recent strong markets, increased productivity and continued expense reductions.
 Revenue for the first six months of 1993 totaled $342.6 million, compared with $345.3 million in the year-ago period.
 REAL ESTATE
 The real estate segment reported a net loss of $92.6 million, or $1.87 per share, for the first half of 1993, compared with a net loss of $7.7 million, or $.16 per share, for the first six months of 1992. The higher net loss in 1993 reflects higher joint venture operating losses and charges of $58.8 million related to increases in the company's provision for real estate-related losses. The 1993 net loss also reflects charges of $5.7 million related to changes in accounting principles.
 Kemper Corp. is a nonoperating holding company with principal subsidiaries in asset management, life insurance and securities brokerage.
 Editor's notes:
 1. Operating earnings/loss denotes net income/loss excluding realized investment results. Realized investment results for the asset management and securities brokerage operations segments are included in operating earnings.
 2. Discontinued operations include the risk management, reinsurance and property-casualty operations.
 3. The subsidiaries comprising the real estate segment were formerly part of the other operations and corporate category and are equity owners in most of the company's real estate joint ventures.
 KEMPER CORP.
 Consolidated Financial Highlights
 (Unaudited -- In millions, except per share data)
 6 months ended June 30 3 months ended June 30
 1993 1992 1993 1992
 Operating earnings
 (by category)
 Asset management $45.1 $45.6 $25.0 $24.3
 Life insurance 37.7 25.6 22.5 16.4
 Securities brokerage (6.2) (17.3) (13.1) (20.3)
 Real estate (28.1) (7.8) (14.6) (3.5)
 Other operations
 & corporate (B) (12.5) (14.7) (6.1) (5.5)
 Total 36.0 31.4 13.7 11.4
 Realized investment
 results (65.6) (35.0) (38.4) (24.9)
 Cumulative effect of
 changes in
 accounting principles (11.9) (14.5) - -
 Net loss from
 continuing operations (41.5) (18.1) (24.7) (13.5)
 Net income (loss)
 from discontinued
 operations (C) 27.1 9.5 (1.9) 2.8
 Net loss $(14.4) $(8.6) $(26.6) $(10.7)
 Net loss per share
 (A),(B) and (D) $(.43) $(.18) $(.63) $(.22)
 Revenue $843.6 $933.1 $404.9 $447.4
 Average common and
 equivalent shares
 outstanding 49.5 48.6 49.7 48.7
 June 30 Dec. 31
 1993 1991
 Invested assets $7,452.9 $7,276.1
 Total assets $13,849.2 $13,176.3
 Total stockholders'
 equity $2,112.8 $1,766.1
 Book value per
 common share $35.23 $33.77
 (A) Per share results reflect the effect of employee interests in Kemper Financial Companies, Inc.
 (B) Per share results in 1993 reflect the dilutive effect of $.14 per share and $.10 per share for the six months and three months ended, respectively, related to preferred stock dividends allocated to the other operations and corporate category.
 (C) Net income from discontinued operations reflects the effects of changes in accounting principles of $14.4 million and $12.5 million for the six months ended June 30, 1993 and June 30, 1992, respectively.
 (D) Earnings per share on a fully diluted basis in anti-dilutive and accordingly is not shown.
 -0- 8/3/93
 /CONTACT: Janice Kalmar, 708-320-4465, or Ira Nathanson, 708-320-4463, both Kemper Corp. Communications Department/
 (KEM)


CO: Kemper Corp. ST: Illinois IN: INS SU: ERN

PS -- NY034 -- 8823 08/03/93 10:47 EDT
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