Kansas City Life Insurance Company Reports Increased Net Income in Q1 2025
Kansas City Life Insurance Company reported a net income of $1.9 million, or $0.19 per share, for the first quarter of 2025. This represents an increase from $1.6 million, or $0.16 per share, in the same period of 2024. The improvement in earnings was primarily driven by a $4.2 million decrease in policyholder benefits, net of reinsurance, and a $900,000 reduction in operating expenses. The company also benefited from a $4.2 million income tax benefit, compared to a $400,000 tax expense in Q1 2024, attributed to a one-time item.
However, Kansas City Life reported a decline in both insurance and investment revenues. Insurance revenues fell by $4.1 million, or 4% year-over-year, and investment revenues decreased by $5.3 million, or 13% year-over-year. The decline in investment revenues was primarily due to changes in the fair value of certain investments.
In recent legal developments, the US Court of Appeals for the Eighth Circuit ruled in January that Kansas City Life had violated contract terms by altering cost-of-insurance charges on its policies. The court determined that these charges should be based on factors such as age, sex, risk class, and expected future mortality, rather than including the company’s own profits and expenses. This ruling is expected to have broader implications for the company’s future policy adjustments.
Kansas City Life, established in 1895 and headquartered in Kansas City, Missouri, provides life insurance and annuity products across 49 US states and the District of Columbia. The company continues to face challenges with market conditions but remains focused on its strategy for managing costs and addressing legal matters.
