Kansas City Life Announces First Quarter 2024 Results

Rhea-AI Summary

Kansas City Life Insurance Company announced its first quarter 2024 results, reporting a net income of $1.6 million or $0.16 per share, a significant improvement from the net loss of $3.2 million or $0.33 per share in the first quarter of 2023. The positive impact was driven by a decrease in policyholder benefits, an increase in investment revenues, and contract charges.

Positive

• Kansas City Life Insurance Company reported a notable improvement in net income for the first quarter of 2024 compared to the same period in 2023.
• The company's net income stood at $1.6 million or $0.16 per share, a positive shift from a net loss of $3.2 million or $0.33 per share in the first quarter of 2023.
• The key factors contributing to this improvement were a $9.4 million decrease in policyholder benefits, an increase of $2.8 million in investment revenues, and a $0.9 million rise in contract charges from the previous year.
• However, the company experienced a decrease of $2.3 million in premiums, an increase of $2.1 million in interest credited to policyholder account balances, and a $2.6 million rise in operating expenses compared to the prior year.
• Kansas City Life Insurance Company, established in 1895, primarily focuses on providing financial protection through life insurance and annuities. The company operates in 49 states and the District of Columbia.

Negative

• The decrease in premiums and increase in operating expenses could potentially impact the company's overall financial performance.
• While the positive trends in investment revenues and contract charges are encouraging, the company needs to address the decline in premiums to sustain growth.
• The increase in interest credited to policyholder account balances may affect the company's profitability in the long run if not managed effectively.

KANSAS CITY, Mo., April 26, 2024 /PRNewswire/ -- Kansas City Life Insurance Company recorded net income of $1.6 million or $0.16 per share in the first quarter of 2024 compared to a net loss of $3.2 million or $0.33 per share in the first quarter of 2023. 

The largest factor in the improvement in 2024 over 2023 was a $9.4 million decrease in policyholder benefits, net of reinsurance. In addition, investment revenues increased $2.8 million and contract charges increased $0.9 million compared to one year earlier. Partially offsetting these improvements, premiums, net of reinsurance, decreased $2.3 million, interest credited to policyholder account balances increased $2.1 million, and operating expenses increased $2.6 million versus the prior year.

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
	2024			2023
Revenues	$	127,308		$	125,969
Net income (loss)	$	1,554		$	(3,241)
Net income (loss) per share, basic and diluted	$	0.16		$	(0.33)
Dividends paid	$	0.14		$	0.14
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-2024-results-302128878.html

SOURCE Kansas City Life Insurance Company

FAQ

What was Kansas City Life Insurance Company's net income in the first quarter of 2024?

Kansas City Life Insurance Company reported a net income of $1.6 million in the first quarter of 2024.

How does the net income for the first quarter of 2024 compare to the same period in 2023?

The net income for the first quarter of 2024 showed a significant improvement compared to the same period in 2023.

What were the key factors contributing to the improvement in 2024 over 2023?

The improvement in 2024 over 2023 was primarily driven by a decrease in policyholder benefits, an increase in investment revenues, and contract charges.

What is the primary business of Kansas City Life Insurance Company?

Kansas City Life Insurance Company's primary business is providing financial protection through the sale of life insurance and annuities.

Where is Kansas City Life Insurance Company based?

Kansas City Life Insurance Company is based in Kansas City, Missouri.

When was Kansas City Life Insurance Company established?

Kansas City Life Insurance Company was established in 1895.