Reinsurance to cover half of Kemper’s Q4 cat losses
US-based Kemper Corporation estimates that its fourth quarter 2018 results will include pre-tax catastrophe losses, including the impacts of the California wildfires, ranging from $25 million to $30 million, net of reinsurance.
The company anticipates $30 million to $35 million of reinsurance recoveries, largely from its 2018 catastrophe aggregate reinsurance programme. 2018 was the first year Kemper entered into a catastrophe aggregate reinsurance programme to mitigate capital and earnings volatility associated with high-frequency, low-severity catastrophe events.
Kemper also announced that it repaid $215 million of the $250 million term loan due June 29, 2020. The term loan was drawn in June 2018 to facilitate the funding of the acquisition of Infinity Property and Casualty Corporation.
“Kemper’s substantial repayment of the term loan reflects the company’s continued strong cash flow and liquidity position following the Infinity acquisition,” said James McKinney, Kemper’s chief financial officer.
With $11 billion in assets, Kemper offers personalized solutions for individuals, families and businesses including insurance for auto, home, life, health and valuables.
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