Kansas City Life Announces Third Quarter 2021 Results
Kansas City Life Insurance Company reported a net loss of $6.0 million or $0.62 per share in Q3 2021, a significant increase from a net loss of $1.2 million or $0.13 per share in Q3 2020. For the first nine months of 2021, the net loss was $2.4 million compared to a net income of $15.9 million in 2020. The primary reasons for these losses include increased death benefits and a decrease in insurance revenues, compounded by a decline in net investment gains due to prior substantial gains from real estate sales. COVID-19 continues to impact financial results negatively.
- Decreases in operating expenses.
- Q3 2021 net loss of $6.0 million, vs $1.2 million in Q3 2020.
- Net loss of $2.4 million in the first nine months of 2021, vs net income of $15.9 million in 2020.
- Decreased insurance revenues and increased policyholder benefits leading to losses.
- Decline in net investment gains compared to prior year.
KANSAS CITY, Mo., Oct. 29, 2021 /PRNewswire/ -- Kansas City Life Insurance Company recorded a net loss of
The largest factors in the increase in net loss in the third quarter of 2021 compared to the third quarter of 2020 was an increase in death benefits net of reinsurance ceded and a decrease in insurance revenues. Also contributing to the increased net loss was a decline in net investment gains.
Factors contributing to the decrease in net income in the first nine months of 2021 compared to the prior year were a decrease in insurance revenues and an increase in policyholder benefits, namely an increase in death benefits net of reinsurance ceded. In addition, a decline in net investment gains contributed to the decrease in net income, as the sale of an industrial real estate property generated a large investment gain in the second quarter of 2020. Partially offsetting these were decreases in operating expenses and amortization of deferred acquisition costs.
The COVID-19 pandemic continues to have a negative impact on our financial results. The primary impacts are a negative effect on mortality experience 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 Quarterly Report for the period ended September 30, 2021 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 | Nine Months Ended | ||||||||||
September 30 | September 30 | ||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||
Revenues | $ | 121,282 | $ | 128,005 | $ | 368,417 | $ | 397,812 | |||
Net income (loss) | $ | (6,006) | $ | (1,199) | $ | (2,388) | $ | 15,920 | |||
Net income (loss) per share, basic and diluted | $ | (0.62) | $ | (0.13) | $ | (0.25) | $ | 1.64 | |||
Dividends paid | $ | 0.27 | $ | 0.27 | $ | 0.81 | $ | 0.81 | |||
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
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