Kansas City Life Announces Fourth Quarter 2025 Results

Rhea-AI Summary

Kansas City Life (OTCQX: KCLI) reported Q4 2025 net income of $1.0 million ($0.10/share) versus a Q4 2024 net loss of $14.0 million ($1.45/share). Full-year 2025 net loss was $20.8 million ($2.14/share) versus a 2024 net loss of $9.6 million ($0.99/share).

Results reflect higher insurance and investment revenues, lower operating expenses (including a prior legal accrual), and legal accruals of $35.6M (Q2 2025) and $16.7M (Q4 2024) net of tax. Revenues were $485.5M for 2025. ADOPTED new long-duration contract accounting effective 1/1/2025; 2024 results recast.

Positive

• Q4 2025 net income of $1.0M ($0.10/share)
• Full-year revenues of $485.45M in 2025
• Improvement in Q4 driven by higher insurance and investment revenues

Negative

• Full-year 2025 net loss of $20.8M ($2.14/share)
• Legal accruals totaled $52.3M net of tax across 2024–2025
• Decrease in insurance revenues year-over-year reduced underlying operating performance

News Market Reaction – KCLI

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-1.23% News Effect

On the day this news was published, KCLI declined 1.23%, reflecting a mild negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

KANSAS CITY, Mo., March 9, 2026 /PRNewswire/ -- Kansas City Life Insurance Company recorded net income of $1.0 million or $0.10 per share in the fourth quarter of 2025 compared to a net loss of $14.0 million or $1.45 per share in the fourth quarter of 2024.  Significant factors in the improvement in net income in the fourth quarter of 2025 were higher insurance and investment revenues and lower operating expenses, which were partially offset by increased policyholder benefits, notably increased death benefits.  Operating expenses were lower in 2025 compared to 2024 as a $16.7 million legal accrual, net of tax, was established in the fourth quarter of 2024 related to class action lawsuits.  Excluding this legal accrual, net income would have been $2.7 million or $0.27 per share in the fourth quarter of 2024. 

We recorded a net loss of $20.8 million or $2.14 per share for the year ended December 31, 2025, compared to a net loss of $9.6 million or $0.99 per share for the year ended December 31, 2024.  A legal accrual of $35.6 million, net of tax, was established in the second quarter of 2025 and the legal accrual of $16.7 million, net of tax, mentioned above, was established in the fourth quarter of 2024 related to class action lawsuits.  Excluding these legal accruals, net income would have been $14.8 million or $1.53 per share in 2025 and $7.1 million or $0.73 per share in 2024.  After excluding the legal accruals, the increase in net income in 2025 compared to 2024 was primarily due to lower policyholder benefits and increased investment revenues.  Partially offsetting this was a decrease in insurance revenues. 

We adopted Accounting Standards Update No. 2018-12 Targeted Improvements to the Accounting for Long Duration Contracts, effective January 1, 2025, with December 31, 2025 marking the first required reporting period for Kansas City Life.  This guidance revises the measurement models and disclosure requirements for long-duration contracts and was applied with a transition date of January 1, 2023.  Accordingly, the results for 2024 included herein have been recast.  For additional information, please refer to our 2025 Annual Report at www.kclife.com.

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. 

Kansas City Life Insurance Company
Condensed Consolidated Income Statement
(amounts in thousands, except share data)
	Quarter Ended						Year Ended
	December 31						December 31
	2025			2024			2025			2024
Revenues	$	121,526		$	116,035		$	485,450		$	490,803
Net income (loss)	$	972		$	(14,007)		$	(20,761)		$	(9,570)
Net income (loss) per share,   basic and diluted	$	0.10		$	(1.45)		$	(2.14)		$	(0.99)
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-2025-results-302708684.html

SOURCE Kansas City Life Insurance Company

FAQ

What did Kansas City Life (KCLI) report for Q4 2025 net income and EPS?

Kansas City Life reported Q4 2025 net income of $1.0 million, $0.10 per share. According to the company, this compares with a Q4 2024 net loss of $14.0 million, and reflects higher insurance and investment revenues and lower operating expenses.

Why did Kansas City Life (KCLI) record large legal accruals in 2024–2025?

The company recorded legal accruals related to class action lawsuits totaling $35.6M (Q2 2025) and $16.7M (Q4 2024), net of tax. According to the company, these accruals materially affected reported net income and were excluded for certain adjusted results.

What was Kansas City Life's full-year 2025 revenue and net result (KCLI)?

Kansas City Life reported full-year 2025 revenues of $485.45 million and a net loss of $20.8 million ($2.14/share). According to the company, adjusted results excluding legal accruals show positive net income of $14.8 million for 2025.

How did adopting new long-duration contract accounting affect Kansas City Life's (KCLI) reporting?

Kansas City Life adopted ASU 2018-12 effective January 1, 2025 and recast 2024 results for comparability. According to the company, the change revises measurement and disclosure for long-duration contracts and affects reported metrics starting in 2025.

What drove the quarter-over-quarter improvement in KCLI's Q4 2025 results?

Improvement was driven by higher insurance and investment revenues and lower operating expenses. According to the company, Q4 2024 included a $16.7M legal accrual that depressed prior-year results, boosting the year-over-year comparison.