Kansas City Life Announces Fourth Quarter 2024 Results

Rhea-AI Summary

Kansas City Life Insurance Company (KCLI) reported a significant financial downturn in Q4 2024, posting a net loss of $12.6 million ($1.30 per share), compared to a net income of $49.1 million ($5.07 per share) in Q4 2023.

The decline was attributed to multiple factors including:

• Lower insurance revenues
• Reduced net investment gains
• Higher operating expenses, including a $21.1 million pretax legal reserve for class action lawsuits
• Realized losses from portfolio repositioning in 2024

For the full year 2024, KCLI recorded a net loss of $5.0 million ($0.51 per share), versus net income of $54.9 million ($5.67 per share) in 2023. While net investment income increased and policyholder benefits declined, these positives were offset by decreased insurance revenues and increased interest credited on policyholder account balances.

Positive

• Net investment income increased year-over-year
• Policyholder benefits expenses decreased

Negative

• Q4 2024 net loss of $12.6M vs $49.1M profit in Q4 2023
• Full-year 2024 net loss of $5.0M vs $54.9M profit in 2023
• $21.1M legal reserve for class action lawsuits
• Lower insurance revenues
• Realized investment losses from portfolio repositioning
• Increased interest credited on policyholder account balances

KANSAS CITY, Mo., March 4, 2025 /PRNewswire/ -- Kansas City Life Insurance Company recorded a net loss of $12.6 million or $1.30 per share in the fourth quarter of 2024, down from net income of $49.1 million or $5.07 per share in the fourth quarter of 2023.  The significant factors in the decrease in net income include lower insurance revenues and net investment gains and higher operating expenses compared to one year earlier.  The increase in operating expenses reflected a $21.1 million pretax legal reserve established in the fourth quarter of 2024 related to class action lawsuits.  Net investment gains were higher in 2023, largely due to real estate sales that generated large gains, and realized losses in 2024 due to portfolio repositioning.  Partially offsetting these factors, net investment income increased and policyholder benefits decreased versus the prior year.  

We recorded a net loss of $5.0 million or $0.51 per share for the year ended December 31, 2024, compared to net income of $54.9 million or $5.67 per share for the year ended December 31, 2023.  This decline reflected the lower realized gains and increased operating expenses mentioned previously.  In addition, insurance revenues decreased and interest credited on policyholder account balances increased.  Partially offsetting these, net investment income increased and policyholder benefits declined.

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.  For more information, please visit 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
	2024			2023			2024			2023
Revenues	$	115,820		$	186,373		$	490,787		$	558,920
Net income (loss)	$	(12,575)		$	49,099		$	(4,965)		$	54,920
Net income (loss) per share, basic and diluted	$	(1.30)		$	5.07		$	(0.51)		$	5.67
Dividends paid	$	0.14		$	0.14		$	0.56		$	0.56
Average number of shares outstanding		9,683,414			9,683,414			9,683,414			9,683,414

View original content:https://www.prnewswire.com/news-releases/kansas-city-life-announces-fourth-quarter-2024-results-302392324.html

SOURCE Kansas City Life Insurance Company

FAQ

What caused Kansas City Life Insurance (KCLI) to report a loss in Q4 2024?

KCLI's Q4 2024 loss was due to lower insurance revenues, reduced investment gains, and $21.1M in legal reserves for class action lawsuits.

How much did KCLI lose per share in Q4 2024 compared to Q4 2023?

KCLI lost $1.30 per share in Q4 2024, compared to earnings of $5.07 per share in Q4 2023.

What was KCLI's full-year 2024 financial performance?

KCLI reported a full-year 2024 net loss of $5.0 million ($0.51 per share), down from net income of $54.9 million ($5.67 per share) in 2023.

How much did KCLI set aside for legal reserves in Q4 2024?

KCLI established a $21.1 million pretax legal reserve related to class action lawsuits in Q4 2024.