Kansas City Life Announces Second Quarter 2025 Results

Rhea-AI Summary

Kansas City Life Insurance Company (OTCQX: KCLI) reported a significant net loss of $28.1 million ($2.90 per share) in Q2 2025, compared to a net income of $4.7 million ($0.49 per share) in Q2 2024. The primary factor was a $35.5 million legal settlement accrual related to class action lawsuits.

Excluding the legal settlement, the company would have posted a net income of $7.5 million ($0.77 per share) in Q2 2025, showing improvement over Q2 2024 due to higher investment revenues and lower policyholder benefits, despite declining insurance revenues. For the first six months of 2025, KCLI reported a net loss of $26.2 million, compared to a net income of $6.3 million in the same period of 2024.

Positive

• Excluding legal settlement, Q2 2025 net income would be $7.5M, higher than Q2 2024's $4.7M
• Higher investment revenues and lower policyholder benefits in Q2 2025
• Maintained stable quarterly dividend of $0.14 per share

Negative

• Q2 2025 net loss of $28.1M compared to $4.7M profit in Q2 2024
• $35.5M legal settlement accrual for class action lawsuits
• Decline in insurance revenues
• First half 2025 revenues decreased to $241.3M from $249.8M in 2024

KANSAS CITY, Mo., Aug. 1, 2025 /PRNewswire/ -- Kansas City Life Insurance Company recorded a net loss of $28.1 million or $2.90 per share in the second quarter of 2025 compared to net income of $4.7 million or $0.49 per share in the second quarter of 2024.  The primary factor in the decrease in net income in the second quarter of 2025 was the establishment of a legal settlement accrual of $35.5 million, net of tax, related to a potential settlement of class action lawsuits. 

Excluding this legal settlement accrual, net income would have been $7.5 million or $0.77 per share in the second quarter of 2025.  After excluding the legal settlement accrual, the improvement over the second quarter of 2024 included higher investment revenues and lower policyholder benefits, partially offset by a decline in insurance revenues.

We recorded a net loss of $26.2 million or $2.71 per share in the first six months of 2025 compared to net income of $6.3 million or $0.65 per share in the first six months of 2024.  The primary factor in the decrease in net income in the first six months of 2025 was the establishment of a legal settlement accrual, as mentioned above. 

Excluding this legal settlement accrual, net income would have been $9.3 million or $0.96 per share in the first six months of 2025.  After excluding the legal settlement accrual, the increase over the first six months of 2024 was primarily due to lower policyholder benefits.  Partially offsetting this were decreases in insurance revenues and investment revenues. 

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 June 30						Six Months Ended June 30
	2025			2024			2025			2024
Revenues	$	122,299		$	122,512		$	241,274		$	249,820
Net income (loss)	$	(28,073)		$	4,735		$	(26,197)		$	6,289
Net income (loss) per share, basic and diluted	$	(2.90)		$	0.49		$	(2.71)		$	0.65
Dividends paid	$	0.14		$	0.14		$	0.28		$	0.28
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-second-quarter-2025-results-302519791.html

SOURCE Kansas City Life Insurance Company

FAQ

What caused Kansas City Life's (KCLI) significant loss in Q2 2025?

The primary cause was a $35.5 million legal settlement accrual related to potential class action lawsuits. Without this accrual, the company would have reported a net income of $7.5 million.

How much was KCLI's Q2 2025 earnings per share?

KCLI reported a loss of $2.90 per share in Q2 2025, compared to earnings of $0.49 per share in Q2 2024. Excluding the legal settlement, EPS would have been $0.77.

Did Kansas City Life maintain its dividend in Q2 2025?

Yes, KCLI maintained its quarterly dividend at $0.14 per share, consistent with the previous year.

How did KCLI's revenue compare between Q2 2025 and Q2 2024?

KCLI's revenues slightly decreased to $122.3 million in Q2 2025 from $122.5 million in Q2 2024, primarily due to declining insurance revenues.

What was Kansas City Life's performance for the first half of 2025?

KCLI reported a net loss of $26.2 million ($2.71 per share) for the first six months of 2025, compared to a net income of $6.3 million ($0.65 per share) in the same period of 2024.