Kansas City Life Announces Fourth Quarter 2022 Results

Rhea-AI Summary

Kansas City Life Insurance Company (KCLI) reported a net loss of $17.3 million ($1.79 per share) for Q4 2022, a notable decline from net income of $13.1 million ($1.36 per share) in Q4 2021. The annual results also reflected a net loss of $16.2 million ($1.67 per share) for 2022, compared to net income of $10.7 million ($1.11 per share) in 2021. Key factors contributing to this downturn included increased operating expenses, primarily due to a $28.4 million legal reserve for a class action lawsuit, and reduced investment gains. However, insurance revenues and net investment income saw improvements.

Positive

• Insurance revenues increased.
• Net investment income improved.
• Policyholder benefits decreased, indicating lower outflows.

Negative

• Net loss of $17.3 million in Q4 2022.
• Annual net loss of $16.2 million for 2022.
• Increased operating expenses attributed to a $28.4 million legal reserve.

KANSAS CITY, Mo., March 6, 2023 /PRNewswire/ -- Kansas City Life Insurance Company recorded a net loss of $17.3 million or $1.79 per share in the fourth quarter of 2022 compared to net income of $13.1 million or $1.36 per share in the fourth quarter of 2021.  Net loss totaled $16.2 million or $1.67 per share for the year ended December 31, 2022, compared to net income of $10.7 million or $1.11 per share for the year ended December 31, 2021.

The largest factors in the decrease in net income for both the fourth quarter and year ended December 31, 2022, compared to the same periods in the prior year, were an increase in operating expenses and a decrease in net investment gains.  The increase in operating expenses was due to the accrual of a $28.4 million pretax legal reserve established in the fourth quarter of 2022 related to a class action lawsuit.  In the fourth quarter of 2021, the Company completed the sale of Sunset Life for a $5.5 million pretax gain and the Company also completed the sale of a real estate property for a $16.6 million pretax gain.  Partially offsetting these items, insurance revenues and net investment income increased, and policyholder benefits, namely death benefits, interest credited to policyholder account balances, and ongoing operating expenses decreased compared to one year earlier.

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 2022 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 December 31						Year Ended December 31
	2022			2021			2022			2021
Revenues	$	122,834		$	142,895		$	476,642		$	511,312
Net income (loss)	$	(17,342)		$	13,092		$	(16,218)		$	10,704
Net income (loss) per share, basic and diluted	$	(1.79)		$	1.36		$	(1.67)		$	1.11
Dividends paid	$	0.14		$	0.27		$	0.69		$	1.08
Average number of shares outstanding		9,683,414			9,683,414			9,683,414			9,683,414

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SOURCE Kansas City Life Insurance Company

FAQ

What were the 2022 financial results for Kansas City Life Insurance Company (KCLI)?

Kansas City Life Insurance Company reported a net loss of $16.2 million for 2022, compared to net income of $10.7 million in 2021.

How did KCLI's fourth quarter of 2022 compare to the same period in 2021?

In Q4 2022, KCLI reported a net loss of $17.3 million, compared to a net income of $13.1 million in Q4 2021.

What contributed to KCLI's net loss in 2022?

The net loss was mainly due to an increase in operating expenses, including a $28.4 million legal reserve, and a decrease in net investment gains.

Did KCLI experience any improvements in its revenue or income?

Yes, while KCLI reported a net loss, it experienced increases in insurance revenues and net investment income.