Kansas City Life Announces Second Quarter 2026 Results

Rhea-AI Summary

Kansas City Life (OTCQX: KCLI) reported net income of $7.8 million ($0.80 per share) for the second quarter of 2026, compared with a net loss of $28.7 million ($2.96 per share) in the same period of 2025. Revenues for the quarter were $125.9 million, up from $122.4 million a year earlier.

According to Kansas City Life, the year-over-year improvement in reported net income was primarily due to the absence of a $45.0 million operating expense impact from a 2025 legal settlement accrual related to class action lawsuits. Excluding this accrual, Q2 2025 net income would have been $6.8 million ($0.71 per share), and Q2 2026 net income would have been 14% higher than the prior year, driven by a $3.5 million (8%) increase in investment revenues, partially offset by a $2.6 million (4%) rise in policyholder benefits. For the first six months of 2026, net income was $17.3 million ($1.79 per share) versus a net loss of $24.6 million ($2.53 per share) in 2025; excluding the settlement accrual, six‑month net income would have been 58% higher year over year. Dividends paid rose to $0.18 per share in Q2 2026 from $0.14 a year earlier.

Positive

• Q2 2026 net income $7.8 million vs. $28.7 million loss in 2025
• Six‑month 2026 net income $17.3 million vs. $24.6 million loss in 2025
• Ex‑settlement, six‑month 2026 net income 58% higher than 2025
• Q2 2026 revenues up to $125.9 million from $122.4 million
• Investment revenues increased $3.5 million (8%) in Q2 2026
• Quarterly dividend per share increased to $0.18 from $0.14

Negative

• 2025 results impacted by $45.0 million legal settlement‑related expense accrual
• Policyholder benefits increased $2.6 million (4%) year over year in Q2 2026
• Insurance revenues declined $2.1 million (1%) for the first six months of 2026

AI-generated analysis. How Rhea-AI works. Not financial advice.

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KANSAS CITY, Mo., July 31, 2026 /PRNewswire/ -- Kansas City Life Insurance Company recorded net income of $7.8 million or $0.80 per share in the second quarter of 2026 compared to a net loss of $28.7 million or $2.96 per share in the second quarter of 2025.  The primary factor for the increase in net income in the second quarter of 2026 was lower operating expenses compared to the prior year.  Operating expenses were $45.0 million higher in the second quarter of 2025 from a legal settlement accrual related to class action lawsuits. 

Excluding this legal settlement accrual, net income would have been $6.8 million or $0.71 per share in the second quarter of 2025.  Excluding the legal settlement accrual, net income for the second quarter  would have been $1.0 million or 14% higher in 2026 compared to the prior year.  This increase in net income for the second quarter primarily resulted from a $3.5 million or 8% increase in investment revenues.  This was partially offset by a $2.6 million or 4% increase in policyholder benefits compared to the prior year.   

Net income totaled $17.3 million or $1.79 per share in the first six months of 2026 compared to a net loss of $24.6 million or $2.53 per share in the first six months of 2025.  The primary factor for the increase in net income in the first six months of 2026 was lower operating expenses from the 2025 legal settlement accrual mentioned above.

Excluding this legal settlement accrual, net income would have been $11.0 million or $1.14 per share in the first six months of 2025.  Excluding the legal settlement accrual, net income for the six months would have been $6.4 million or 58% higher in 2026 than the prior year.  This increase in net income was largely due to a $5.3 million or 6% increase in investment revenues and a $2.3 million or 4% decrease in operating expenses.  These improvements were partially offset by a $2.1 million or 1% decline in insurance revenues compared to the prior year. 

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.

A Condensed Consolidated Income Statement appears on the next page. 

Kansas City Life Insurance Company Condensed Consolidated Income Statement (amounts in thousands, except share data)
	Quarter Ended June 30						Six Months Ended  June 30
	2026			2025			2026			2025
Revenues	$	125,881		$	122,410		$	243,692		$	240,400
Net income (loss)	$	7,768		$	(28,726)		$	17,339		$	(24,566)
Net income (loss) per share, basic and diluted	$	0.80		$	(2.96)		$	1.79		$	(2.53)
Dividends paid	$	0.18		$	0.14		$	0.36		$	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-2026-results-302840228.html

SOURCE Kansas City Life Insurance Company

FAQ

How did Kansas City Life (OTCQX: KCLI) perform financially in Q2 2026?

Kansas City Life reported Q2 2026 net income of $7.8 million ($0.80 per share), versus a net loss a year earlier. According to Kansas City Life, quarterly revenues rose to $125.9 million from $122.4 million, reflecting higher investment revenues and increased policyholder benefits.

Why did Kansas City Life’s net income improve so sharply year over year in Q2 2026?

The sharp improvement mainly reflects the absence of a 2025 legal settlement accrual that raised prior‑year expenses by $45.0 million. According to Kansas City Life, excluding this item, Q2 2026 net income was 14% higher, driven by an 8% increase in investment revenues.

What were Kansas City Life’s results for the first six months of 2026 (KCLI)?

For the first six months of 2026, Kansas City Life reported net income of $17.3 million ($1.79 per share) versus a net loss in 2025. According to Kansas City Life, revenues were $243.7 million, and ex‑settlement, net income would have been 58% higher than the prior year.

How did the legal settlement accrual affect Kansas City Life’s 2025 comparisons?

A legal settlement accrual related to class action lawsuits increased 2025 operating expenses by $45.0 million, causing reported net losses. According to Kansas City Life, excluding this accrual, Q2 2025 net income would have been $6.8 million and six‑month 2025 net income $11.0 million.

Did Kansas City Life (KCLI) change its dividend in Q2 2026?

Yes. Kansas City Life paid a Q2 2026 dividend of $0.18 per share, up from $0.14 in Q2 2025. According to Kansas City Life, total dividends for the first six months rose to $0.36 per share from $0.28.

What drove Kansas City Life’s investment and insurance revenue trends in 2026?

Investment revenues increased by $3.5 million (8%) in Q2 and $5.3 million (6%) over six months. According to Kansas City Life, these gains were partly offset by a $2.1 million (1%) decline in insurance revenues for the first six months of 2026.