Kemper Corp., a specialty insurance company, reported net income of $75.4 million in the second quarter, a significant turnaround from a net loss of $97.1 million in the same period last year.

Joseph P. Lasher Jr. (pictured above), the company’s president and CEO, noted that the combined percentage for the automotive segment was well below the company’s long-term goal. The segment also saw a 4.6 percent increase in policies in effect compared to the first quarter of the year.

Specialty property/casualty insurance posted a core overall ratio of 89.6, a 12-point improvement from the prior year. The company attributed the gains to higher average premiums earned, driven by rate increases and lower claims frequency.

However, the company’s life estate operations recorded a net operating loss of $200,000 during the quarter. This loss was primarily due to lower net investment income, including an after-tax loss of $11.9 million on a real estate interest in the alternative investment portfolio.

Read more: Kemper expects net income of $70 million to $80 million in the second quarter.

Total revenue for the second quarter decreased $132.9 million, or 10.5%, to $1,129.9 million compared to the second quarter of 2023. This decrease was primarily due to a $69.7 million decrease in the Specialty Property & Casualty segment, which resulted from lower new business volumes following targeted actions to improve profitability.

However, this was partially offset by higher average premiums earned per exposure due to price increases. Additionally, there was a decline in premiums from the preferred insurance business, following the decision to exit and wind down the business in Q3 2023.

Net written premiums in the specialty property and casualty insurance segment were $933.9 million in the second quarter, compared to $830.6 million in the same period in 2023.

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