Kansas City Life Announces Fourth Quarter 2021 Results
Kansas City Life Insurance Company reported a net income of $13.1 million or $1.36 per share for Q4 2021, compared to a net loss of $0.8 million or $(0.07) per share in Q4 2020. Annually, net income was $10.7 million, down from $15.2 million in 2020. Key drivers for Q4's improvement included increased net investment gains from real estate sales. However, insurance revenues and net investment income declined, compounded by the pandemic's negative impacts on mortality rates and low interest rates.
- Net income of $13.1 million in Q4 2021, up from a loss of $0.8 million in Q4 2020.
- Increase in net investment gains due to the sale of real estate.
- Gain from the sale of the subsidiary Sunset Life Insurance Company.
- Annual net income decreased to $10.7 million from $15.2 million in 2020.
- Declines in insurance revenues and net investment income.
- Pandemic-related effects led to excess mortality impacting financial results.
KANSAS CITY, Mo., March 4, 2022 /PRNewswire/ -- Kansas City Life Insurance Company recorded net income of
The largest factor in the increase in net income in the fourth quarter of 2021 compared to the fourth quarter of 2020 was an increase in net investment gains, reflecting the sale of an industrial real estate property. In addition, we completed the sale of our subsidiary Sunset Life Insurance Company in the fourth quarter of 2021, which generated a gain. Also, policyholder benefits decreased compared to one year earlier. Partially offsetting these were declines in insurance revenues and net investment income.
The decrease in net income for the year ended December 31, 2021, compared to the prior year reflected declines in insurance revenues and net investment income. Partially offsetting these were an increase in net investment gains, largely from the sale of a real estate property, and the gain on the sale of Sunset Life Insurance Company. In addition, the amortization of deferred acquisition costs and operating expenses decreased compared to the prior year.
The COVID-19 pandemic and related effects continue to have a negative impact on our financial results. The primary impacts are a sizeable increase in excess mortality, largely resulting from the impacts of the pandemic, and the continued low interest rate environment.
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.
Please refer to our 2021 Annual Report for additional information, which is available at www.kclife.com.
Kansas City Life Insurance Company | |||||||||||
Condensed Consolidated Income Statement | |||||||||||
(amounts in thousands, except share data) | |||||||||||
Quarter Ended | Year Ended | ||||||||||
December 31 | December 31 | ||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||
Revenues | $ | 142,895 | $ | 126,098 | $ | 511,312 | $ | 523,910 | |||
Net income (loss) | $ | 13,092 | $ | (750) | $ | 10,704 | $ | 15,170 | |||
Net income (loss) per share, | $ | 1.36 | $ | (0.07) | $ | 1.11 | $ | 1.57 | |||
Dividends paid | $ | 0.27 | $ | 0.27 | $ | 1.08 | $ | 1.08 | |||
Average number of shares | 9,683,414 | 9,683,414 | 9,683,414 | 9,683,414 | |||||||
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SOURCE Kansas City Life Insurance
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