Kansas City Life Announces First Quarter 2021 Results
Kansas City Life Insurance Company reported a net loss of $0.7 million or $0.07 per share for Q1 2021, contrasting with a net income of $0.2 million or $0.02 per share in Q1 2020. Key factors in the loss included a decline in premiums and an increase in policyholder benefits, largely driven by higher death benefits. The company also faced increased income tax expenses. While net realized investment gains rose, the impact of the COVID-19 pandemic adversely affected mortality experience, contributing to the overall financial downturn.
- Increased net realized investment gains.
- Lower amortization of deferred acquisition costs compared to the prior year.
- Net loss of $0.7 million for Q1 2021 compared to a net income of $0.2 million in Q1 2020.
- Decrease in premiums net of reinsurance.
- Increase in policyholder benefits reflecting higher death benefits.
- Higher income tax expenses.
KANSAS CITY, Mo., April 30, 2021 /PRNewswire/ -- Kansas City Life Insurance Company recorded a net loss of
The largest contributors in the decline in net income in 2021 compared to 2020 were a decrease in premiums, net of reinsurance, and an increase in policyholder benefits. The increase in policyholder benefits reflected higher death benefits. In addition, an increase in income tax expense also contributed to lower net income. Partially offsetting these were an increase in net realized investment gains and lower amortization of deferred acquisition costs compared to the prior year.
The COVID-19 pandemic negatively impacted results in both the first quarters of 2021 and 2020. The primary impact during the first quarter of 2021 was a negative effect on mortality experience, which contributed to higher policyholder benefits. The primary impact of the pandemic during the first quarter of 2020 was increased financial market volatility.
Kansas City Life Insurance Company (OTCQX: KCLI) was established in 1895 and is based in Kansas City, Missouri. The Company's primary business is providing financial protection through the sale of life insurance and annuities. The Company operates in 49 states and the District of Columbia. For more information, please visit www.kclife.com.
Kansas City Life Insurance Company Condensed Consolidated Income Statement (amounts in thousands, except share data) | |||||
Quarter Ended | |||||
March 31 | |||||
2021 | 2020 | ||||
Revenues | $ | 122,331 | $ | 123,035 | |
Net income (loss) | $ | (668) | $ | 150 | |
Net income (loss) per share, basic and diluted | $ | (0.07) | $ | 0.02 | |
Dividends paid | $ | 0.27 | $ | 0.27 | |
Average number of shares outstanding | 9,683,414 | 9,683,414 | |||
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SOURCE Kansas City Life Insurance Company
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