- Adjusted consolidated net operating income was $84.1 million or $1.30 per diluted share.
- Commercial Auto segment had an underlying combined ratio of 90% with 18% PIF growth, despite $19 million adverse prior-year development.
- Kemper reported net income of $72.6 million or $1.12 per diluted share for Q2 2025.
- Life segment showed stable operating results with strong return on capital and distributable cash flows.
- Operating cash flow hit an all-time high of nearly $600 million trailing 12 months.
- Return on adjusted equity was 14.9%, with adjusted book value per share growth of 14.3% year-over-year.
- Specialty Auto segment produced an underlying combined ratio of 93.5% and 8% year-over-year policies in force (PIF) growth.
- The company repurchased $80 million of common stock since April 1 and received board approval for an additional $500 million repurchase authorization.
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- Adjusted compensation expense was accrued at 67.5% of revenues for the first half of 2025 compared to 69.5% for the first half of 2024.
- Adjusted EPS was $1.54, up 29% from year ago levels for the second quarter.
- Adjusted noncompensation expense was $52 million in the second quarter, up 18% year-over-year, and $101 million for the first half, up 13.5% year-over-year.
- Adjusted pretax income was $80 million, up 22% year-over-year.
- Adjusted pretax margin for the first 6 months was 18.6% compared to 17.5% for the same period last year.
- Adjusted pretax margin for the second quarter was 19.7% compared to 18.2% for the same period last year.
- Board approved a quarterly dividend of $0.25 per share.
- Effective tax rate for the first half of 2025 was 16.5%, estimated for the full year.
- Ended the quarter with $318 million in cash, cash equivalents and short-term investments and $461 million in net working capital with no funded debt outstanding.
- For the 6 months, revenues increased 6%, adjusted pretax income increased 13%, and adjusted EPS increased 19% from year ago levels.
- Repurchased approximately 642,000 shares in the second quarter and 2.1 million shares in the first 6 months.
- Second quarter revenues were $407 million, up 13% year-over-year.
- Weighted average share count was 43.4 million shares, up 1% versus a year ago.
- Adjusted operating income increased 32% year-over-year, marking the fourth consecutive quarter of year-over-year growth.
- Alternative investment returns were 10% annualized or $101 million, supporting earnings.
- Annuities generated operating income of $287 million, slightly down from $297 million in prior year quarter, driven by traditional variable annuity outflows offset by growth in spread income.
- Estimated RBC ratio remained above 420%, well above the 400% target.
- Group Protection delivered record earnings of $173 million, up 33% year-over-year, with margin increasing 250 basis points to 12.5%.
- Life Insurance reported operating earnings of $32 million, a significant improvement from an operating loss of $35 million in the prior year quarter.
- Net income available to common stockholders was $688 million or $3.80 per diluted share.
- Retirement Plan Services operating earnings were $37 million, down from $40 million year-over-year but up sequentially from $34 million.
- Second quarter adjusted operating income available to common stockholders was $427 million or $2.36 per diluted share.
- Allowance for credit losses was $51.6 million or 1.26% of gross loans, down from $54.9 million in the prior quarter.
- Earnings for the June quarter were $1.39 diluted, unchanged from the prior quarter but up 17% year-over-year.
- Full year fiscal '25 earnings were $5.18 compared to $4.42 in fiscal '24, driven by stronger net interest income from 7% earning asset growth and net interest margin expansion.
- Net charge-offs totaled $5.3 million for the quarter, primarily from a special purpose CRE loan and a commercial contractor credit.
- Net interest margin for the quarter was 3.46%, up from 3.39% in the prior quarter, benefiting from higher loan yields and deployment of excess cash into loans.
- Noninterest expense rose 2.3% due to $425,000 consulting expenses and increased data processing costs.
- Noninterest income increased 9.2% quarter-over-quarter, driven by an additional card network bonus of $537,000.
- Provision for credit losses increased to $2.5 million from $932,000 in the prior quarter due to net charge-offs and loan growth.
- Quarterly dividend increased by $0.02 or 8.7% to $0.25 per share.
- Return on average assets was 1.21% and return on average equity was 11.4% for fiscal 2025.
- Tangible book value per share increased by $5.19 or just above 14% over the last 12 months to $41.87.
- Adjusted EPS increased 11% to $1.85, while GAAP EPS was $1.51.
- Adjusted operating income grew 13% to $1.4 billion, with adjusted operating margin expanding 30 basis points to 22.7%.
- Consolidated revenue increased 11% to $6.4 billion in Q3 2025, with 4% underlying growth despite headwinds from fiduciary interest income.
- Consulting segment revenue grew 9% to $2.5 billion, with 5% underlying growth and adjusted operating margin up 40 basis points to 22.1%.
- Fiduciary interest income declined by $29 million to $109 million due to lower interest rates.
- Mercer’s revenue increased 9% to $1.6 billion, with 3% underlying growth; assets under management reached $683 billion, up 25% year-over-year.
- Oliver Wyman revenue rose 9% to $886 million, with 8% underlying growth, though Q3 benefited from favorable timing.
- Risk and Insurance Services (RIS) revenue rose 13% to $3.9 billion, with 3% underlying growth; adjusted operating margin was 24.7%.
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