Kansas City Life Announces Second Quarter 2021 Results

Rhea-AI Summary

Kansas City Life Insurance Company reported a net income of $4.3 million or $0.44 per share for Q2 2021, marking a decrease of $12.7 million or $1.31 per share from Q2 2020. For the first half of 2021, net income was $3.6 million or $0.37 per share, down from $17.1 million or $1.77 per share year-over-year. Decreased net investment gains, insurance revenues, and increased policyholder benefits contributed to this decline. The company continues to face challenges posed by the COVID-19 pandemic, affecting mortality experience and market volatility.

Positive

• Decrease in amortization of deferred acquisition costs.
• Reduction in operating expenses.

Negative

• Net income decreased by $12.7 million or $1.31 per share compared to Q2 2020.
• Net income for the first half of 2021 dropped to $3.6 million from $17.1 million in 2020.
• Decline in net investment gains following the previous year's industrial property sale.
• Overall decrease in insurance revenues.
• Increase in policyholder benefits.

KANSAS CITY, Mo., July 30, 2021 /PRNewswire/ -- Kansas City Life Insurance Company recorded net income of $4.3 million or $0.44 per share in the second quarter of 2021, a decrease of $12.7 million or $1.31 per share relative to the second quarter of 2020.  Net income totaled $3.6 million or $0.37 per share in the first six months of 2021, down from $17.1 million or $1.77 per share in the first six months of 2020.

The largest factor in the decrease in net income in the second quarter and first six months of 2021 compared to the same periods in the prior year was a decrease in net investment gains.  The sale of an industrial real estate property generated a large investment gain in the second quarter of 2020.  Also contributing to the decrease in both periods were a decline in insurance revenues and an increase in policyholder benefits.  Partially offsetting these were decreases in amortization of deferred acquisition costs and operating expenses. 

The COVID-19 pandemic continued to have negative impacts in both the second quarters and first six months of 2021 and 2020.  The primary impacts were a negative effect on mortality experience and increased financial market volatility.

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 June 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 June 30						Six Months Ended June 30
	2021			2020			2021			2020
Revenues	$	124,804		$	146,772		$	247,135		$	269,807
Net income	$	4,286		$	16,969		$	3,618		$	17,119
Net income per share, basic and diluted	$	0.44		$	1.75		$	0.37		$	1.77
Dividends paid	$	0.27		$	0.27		$	0.54		$	0.54
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 were Kansas City Life's Q2 2021 earnings?

Kansas City Life reported a net income of $4.3 million or $0.44 per share in Q2 2021.

How did the pandemic affect Kansas City Life's financial performance?

The COVID-19 pandemic negatively impacted mortality experience and increased market volatility, contributing to decreased earnings.

What is the decline in net income for Kansas City Life in 2021 compared to 2020?

Net income decreased by $12.7 million or $1.31 per share in Q2 2021 compared to Q2 2020.

What factors contributed to the decrease in net income for Kansas City Life?

The decrease was primarily due to lower net investment gains, a decline in insurance revenues, and increased policyholder benefits.

What were the total revenues for Kansas City Life in Q2 2021?

Total revenues for Q2 2021 were $124.8 million.