Kansas City Life Insurance Stock Price, News & Analysis

Kansas City Life Insurance Company (traded on the OTCQX market under the symbol KCLI) is a finance and insurance sector company in the direct life insurance carriers industry. According to company disclosures, Kansas City Life was established in 1895 and is based in Kansas City, Missouri. The company states that its primary business is providing financial protection through the sale of life insurance and annuities, and that it operates in 49 states and the District of Columbia.

As a direct life insurance carrier, Kansas City Life focuses on products that are intended to provide long-term financial protection and income solutions for policyholders and their beneficiaries. Company communications describe its core activities as centered on life insurance and annuity contracts, with results influenced by insurance revenues, policyholder benefits, investment revenues, and operating expenses. These elements are highlighted repeatedly in the company’s condensed consolidated income statements released with quarterly and annual results.

Business focus and revenue drivers

In its earnings releases, Kansas City Life explains performance in terms of several key components: insurance revenues, policyholder benefits (including death benefits, net of reinsurance), net investment income, net investment gains or losses, interest credited to policyholder account balances, operating expenses, and income taxes. Changes in these items are used by the company to describe movements in net income or net loss over different reporting periods. The company also notes that dividends on its common stock are declared by its Board of Directors on a quarterly basis.

The company’s discussion of results indicates that policyholder benefits and investment-related income are important to its financial performance. For example, it has attributed improvements in certain quarters to higher investment revenues and lower policyholder benefits, often driven by changes in death benefits, net of reinsurance. In other periods, it has cited lower insurance revenues, higher operating expenses, and changes in investment gains or losses as significant factors affecting net income.

Geographic reach

Kansas City Life reports that it operates in 49 states and the District of Columbia. This footprint reflects a broad geographic presence within the United States life insurance market. The company’s references to nationwide class action litigation involving certain universal life and variable universal life policies further indicate that its policyholder base is spread across multiple jurisdictions.

Legal and regulatory context

Company news releases describe previously disclosed class action litigation related to cost of insurance rates used in certain universal life and variable universal life policies. Kansas City Life announced that it entered into an agreement intended to settle all claims asserted in this cost of insurance class action litigation, subject to preliminary and final court approval. The proposed nationwide settlement agreement is described as addressing claims of policyholders whose specified universal life and variable universal life policies were active on or after January 1, 2002.

The company has also reported establishing legal reserves and a legal settlement accrual related to this litigation. In its financial commentary, Kansas City Life identifies these legal accruals as significant factors in quarterly and year-to-date net income or net loss. The company has stated that, in entering the settlement agreement, it does not admit to liability or wrongdoing and that it would continue to defend itself if the settlement is not approved by the courts.

Financial reporting themes

In multiple quarterly and annual earnings releases, Kansas City Life provides a condensed consolidated income statement summarizing revenues, net income or loss, net income or loss per share, dividends paid per share, and average number of shares outstanding. The narrative accompanying these tables explains the main drivers of performance over each period. For example, the company has discussed:

• Lower or higher insurance revenues compared to prior periods.
• Changes in policyholder benefits, including death benefits, net of reinsurance.
• Variations in net investment income and net investment gains or losses, including the impact of real estate sales and portfolio repositioning.
• Operating expenses, including legal reserves related to class action lawsuits.
• Interest credited to policyholder account balances.
• Income tax expense or benefit, including one-time tax benefits.

These disclosures illustrate how Kansas City Life’s results are affected by both its core insurance activities and its investment portfolio, as well as by legal and tax developments.

Dividends and shareholder returns

The Board of Directors of Kansas City Life has repeatedly declared a quarterly dividend of a stated amount per share, with payment dates and record dates specified in its press releases. These announcements emphasize the company’s practice of making regular cash distributions to stockholders, subject to board approval. The dividend information appears alongside the company’s earnings releases and stand-alone dividend declarations.

Products referenced in legal disclosures

In connection with the proposed settlement of cost of insurance class action litigation, Kansas City Life identifies specific universal life and variable universal life policies that are part of the defined class. These include policies such as Better Life Plan, Better Life Plan Qualified, LifeTrack, AGP, MGP, PGP, Chapter One, Classic, Century II, Rightrack (89), Performer (88), Performer (91), Prime Performer, Competitor (88), Competitor (91), Executive (88), Executive (91), Protector 50, LewerMax, Ultra 20 (93), Competitor II, Executive II, Performer II, and Ultra 20 (96). The company states that these policies were issued and administered by Kansas City Life and were active on or after January 1, 2002, for purposes of the settlement class definition.

While these product names appear in the legal context of the proposed settlement, they also illustrate the variety of universal life and variable universal life policy forms that Kansas City Life has issued and administered over time.

Stock information and trading venue

Kansas City Life identifies its stock symbol as KCLI and notes that its shares trade on the OTCQX market. This information appears consistently in the company’s news releases. Investors researching KCLI stock are therefore looking at a life insurance company with a long operating history, headquartered in Kansas City, Missouri, and focused on life insurance and annuity products across most U.S. states.

Company status

Based on the available news releases, Kansas City Life continues to issue quarterly and annual financial results and dividend declarations under the KCLI symbol on OTCQX. There is no indication in the provided information of a completed merger, acquisition, bankruptcy filing, or delisting from OTCQX. However, as with any company, trading status and corporate structure can change, and investors should review the latest official disclosures for the most current information.