Kansas City Life Announces First Quarter 2022 Results

Rhea-AI Summary

Kansas City Life Insurance Company reported a net loss of $7.7 million or $0.79 per share for Q1 2022, compared to a net loss of $0.7 million or $0.07 per share in Q1 2021. The increase in net loss was primarily due to a rise in policyholder benefits, especially death benefits affected by the COVID-19 pandemic. Additionally, amortization of deferred acquisition costs and operating expenses increased, while net investment income and gains declined. However, income tax expense decreased due to a higher pretax loss.

Positive

• Income tax expense decreased, reflecting a higher pretax loss.

Negative

• Net loss increased significantly from $0.7 million to $7.7 million year-over-year.
• Operating expenses rose compared to the prior year.
• Net investment income and gains declined compared to one year earlier.

KANSAS CITY, Mo., April 29, 2022 /PRNewswire/ -- Kansas City Life Insurance Company recorded a net loss of $7.7 million or $0.79 per share in the first quarter of 2022 compared to a net loss of $0.7 million or $0.07 per share in the first quarter of 2021. 

The largest factor in the decline in net income in the first quarter of 2022 compared to the first quarter of 2021 was an increase in policyholder benefits, largely from death benefits, net of reinsurance.  Policyholder benefits have been heavily affected by the COVID-19 pandemic and its related impacts.  In addition, the amortization of deferred acquisition costs and operating expenses increased compared to the prior year.  Also, net investment income and net investment gains declined verses one year earlier.  Partially offsetting these, income tax expense decreased compared to the prior year, reflecting a higher pretax loss. 

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
	2022			2021
Revenues	$	119,231		$	122,331
Net loss	$	(7,676)		$	(668)
Net loss per share, basic and diluted	$	(0.79)		$	(0.07)
Dividends paid	$	0.27		$	0.27
Average number of shares outstanding		9,683,414			9,683,414

 

View original content:https://www.prnewswire.com/news-releases/kansas-city-life-announces-first-quarter-2022-results-301536413.html

SOURCE Kansas City Life Insurance Company

FAQ

What were Kansas City Life's Q1 2022 financial results?

Kansas City Life reported a net loss of $7.7 million, or $0.79 per share, in Q1 2022.

How did policyholder benefits affect Kansas City Life's financial results?

Policyholder benefits increased significantly, impacting the company's net loss due to COVID-19 related claims.

What was the change in net investment income for Kansas City Life in Q1 2022?

Net investment income and gains declined compared to Q1 2021.

What caused the increase in operating expenses for Kansas City Life in Q1 2022?

The increase in operating expenses was attributed to higher amortization of deferred acquisition costs.

How does the net loss in Q1 2022 compare to Q1 2021 for Kansas City Life?

The net loss in Q1 2022 was $7.7 million, a significant increase from $0.7 million in Q1 2021.