Shares of Kemper Corporation KMPRhit a new 52-week high of $75 on May 16, gaining traction from a strong first-quarter 2018 earnings release. About 0.4 million shares exchanged hands in the last trading session and the stock finally closed at $74.75, inching up 1.7%. The company’s return on equity has been an impressive 9.
1% when compared with the industry average of 4.8%.Solid Q1 Results
Kemper’s bottom line of $1.10 outpaced the Zacks Consensus Estimate by 59.4% and rebounded from the year-ago loss of 8 cents.
Earned premiums increased 8% on the strength of policies-in-force growth and higher premiums earned in non-standard auto business.
Underlying combined ratio improved 470 bps on higher rates, lower claims and prudent underwriting actions.
Shares of the company have rallied 11.1% since it posted strong first-quarter results, outperforming the industry’s decline of 0.6%. This Zacks Rank #1 (Strong Buy) insurer flaunts a stellar surprise history, beating estimates for six straight quarters with an average beat of 96.3%.