Kansas City Life Announces Sale of Sunset Life

Rhea-AI Summary

Kansas City Life Insurance Company announced the sale of its wholly-owned subsidiary, Sunset Life Insurance Company of America, to Bona Holdings, effective November 1, 2021. The company expects to record a net gain of approximately $5.5 million from this transaction. Sunset Life, operational since 1937, ceased writing new business in the early 2000s and was reinsured by Kansas City Life as of December 31, 2020. The sale allows Kansas City Life to consolidate resources and enhance focus on growth and customer service while maintaining existing customer relationships.

Positive

• Kansas City Life expects a net gain of approximately $5.5 million from the sale.
• The sale allows Kansas City Life to consolidate corporate resources and focus on growth.
• Existing customer relationships with Sunset Life will be maintained.

Negative

• None.

KANSAS CITY, Mo., Nov. 2, 2021 /PRNewswire/ -- Kansas City Life Insurance Company ("Kansas City Life') announced today that it has sold Sunset Life Insurance Company of America, Inc. ("Sunset Life"), a wholly-owned subsidiary, to Bona Holdings, LLC, effective on November 1, 2021.

Kansas City Life is expected to record a net gain of approximately $5.5 million on the transaction.

Sunset Life was founded in 1937 and acquired by Kansas City Life in 1974. Sunset Life operated primarily in the life insurance and annuity market, but ceased writing new business in the early 2000's.  Kansas City Life reinsured 100% of the outstanding business of Sunset Life on December 31, 2020, and will continue to service all business issued prior to November 1, 2021, under the terms of the December 31, 2020, reinsurance agreement.

"Kansas City Life had a wonderful relationship with Sunset Life and its customers for over 45 years," said R. Philip Bixby, President, Chief Executive Officer and Chairman of the Board of Kansas City Life.  He added, "While we are excited to see what Sunset Life's future opportunities will be under Bona Holdings, we are also pleased to be able to maintain our existing relationships with those customers who joined our enterprise through Sunset Life." He concluded by adding, "The sale of Sunset Life will permit Kansas City Life to consolidate corporate resources and to focus on growth and customer service while continuing to provide Security Assured to all of our customers."

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.

 

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SOURCE Kansas City Life Insurance Company

FAQ

What is the significance of the Kansas City Life and Sunset Life transaction on November 1, 2021?

Kansas City Life sold its subsidiary, Sunset Life Insurance Company, to Bona Holdings for a net gain of approximately $5.5 million.

What will happen to Sunset Life's customers after the sale?

Kansas City Life will continue to service all business issued prior to November 1, 2021, under a reinsurance agreement.

How does the sale impact Kansas City Life's focus on growth?

The sale allows Kansas City Life to consolidate resources and enhance its focus on growth and customer service.

What was the operational history of Sunset Life before its sale?

Sunset Life was founded in 1937 and ceased writing new business in the early 2000s.

What is Kansas City Life's primary business focus?

Kansas City Life primarily provides financial protection through the sale of life insurance and annuities.