Kansas City Life Insurance Reports Net Loss in Q4 2024
Kansas City, MO – Kansas City Life Insurance Company announced a net loss for the fourth quarter of 2024, a significant shift from the previous year’s positive results. The company’s financial performance was impacted by a combination of factors, as revealed in its latest earnings report.
For Q4 2024, the company reported a net loss of $12.6 million, or $1.30 per share. This contrasts sharply with the net income of $49.1 million, or $5.07 per share, recorded in the same period of 2023. The downturn was primarily driven by reduced insurance revenues, lower net investment gains, and increased operating expenses.
Operating expenses saw a rise, largely attributed to a $21.1 million pretax legal reserve established in the fourth quarter to address class action lawsuits. Meanwhile, net investment gains were higher in 2023 due to substantial gains from real estate sales. In 2024, there were realized losses resulting from portfolio repositioning. Despite these figures, net investment income increased, and policyholder benefits decreased compared to the prior year.
For the full year ending December 31, 2024, Kansas City Life recorded a net loss of $5 million, or $0.51 per share, a reversal from the net income of $54.9 million, or $5.67 per share, in 2023. The decline reflected lower realized gains, alongside the impact of higher operating expenses. Furthermore, insurance revenues were down, and interest credited on policyholders’ account balances increased. These factors were partially offset by higher net investment income and a decrease in policyholder benefits.
In January, the company’s board declared a quarterly dividend of $0.14 per share, expected to be paid on February 12 to stockholders of record on February 6.
Looking at the first six months of 2024, the company recorded a net income of $6.3 million, an increase from $1.2 million during the first half of 2023. The positive results in H1 2024 were attributed to a rise in investment revenue and a decline in policyholder benefits. These gains were partially offset by a decrease in insurance revenue, increases in operating expenses, and interest credited to policyholder account balances.
Established in 1895, Kansas City Life Insurance Company provides financial protection through the sale of life insurance and annuities. The company, headquartered in Kansas City, Missouri, operates in 49 states and the District of Columbia.
