Kansas City Life Announces Fourth Quarter 2023 Results

Rhea-AI Summary

Kansas City Life Insurance Company reported a significant turnaround in its financial performance in the fourth quarter of 2023, with a net income of $49.1 million compared to a net loss of $17.3 million in the same period of 2022. The improvement was driven by a substantial increase in realized investment gains, particularly from real estate sales. Additionally, net investment income rose, and operating expenses decreased. For the full year 2023, the company achieved a net income of $54.9 million, a stark contrast to the net loss of $16.2 million in 2022. This positive outcome was supported by higher investment gains, increased investment income, reduced costs, and lower operating expenses.

KANSAS CITY, Mo., March 6, 2024 /PRNewswire/ -- Kansas City Life Insurance Company recorded net income of $49.1 million or $5.07 per share in the fourth quarter of 2023, compared to a net loss of $17.3 million or $1.79 per share in the fourth quarter of 2022.  The largest factor in this improvement was a $61.7 million increase in realized investment gains, largely due to real estate sales that generated a net pretax gain of $63.9 million in the fourth quarter of 2023.  In addition, net investment income increased $1.8 million and operating expenses decreased $19.6 million compared to the prior year.  The decrease in operating expenses was primarily due to the establishment of a $28.4 million legal reserve accrual in the fourth quarter of 2022 related to a class action lawsuit.

Net income totaled $54.9 million or $5.67 per share for the year ended December 31, 2023, compared to a net loss of $16.2 million or $1.67 per share for the year ended December 31, 2022.  This improvement included a $78.7 million increase in net realized investment gains, reflecting the sales mentioned previously.  Also contributing to the increase in net income was a $3.8 million increase in net investment income, a $6.2 million decrease in the amortization of deferred acquisition costs, and a $10.3 million decrease in operating expenses.  The decrease in operating expenses largely resulted from higher expenses in 2022 due to the legal reserve mentioned above.  Partially offsetting these improvements in income, policyholder benefits increased $7.4 million in 2023 compared to 2022. 

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 2023 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
	2023			2022			2023			2022
Revenues	$	186,373		$	122,834		$	558,920		$	476,642
Net income (loss)	$	49,099		$	(17,342)		$	54,920		$	(16,218)
Net income (loss) per share, basic and diluted	$	5.07		$	(1.79)		$	5.67		$	(1.67)
Dividends paid	$	0.14		$	0.14		$	0.56		$	0.69
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 was Kansas City Life Insurance Company's net income in the fourth quarter of 2023?

Kansas City Life Insurance Company reported a net income of $49.1 million in the fourth quarter of 2023.

What contributed to the improvement in Kansas City Life Insurance Company's financial performance in 2023?

The improvement in Kansas City Life Insurance Company's financial performance in 2023 was primarily driven by a significant increase in realized investment gains, higher net investment income, and a decrease in operating expenses.

What was the net income per share for Kansas City Life Insurance Company in the fourth quarter of 2023?

Kansas City Life Insurance Company reported a net income per share of $5.07 in the fourth quarter of 2023.

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.