Kansas City Life Insurance Company reported a net loss of $12.6 million, or $1.30 per share, in the fourth quarter of 2024, compared with net income of $49.1 million, or $5.07 per share, a year earlier.
The decline was driven by lower insurance revenues, decreased net investment gains and higher operating expenses.
Operating expenses increased due to a $21.1 million pretax legal reserve recorded in the fourth quarter related to class action lawsuits. Meanwhile, net investment gains were higher in 2023, primarily due to real estate sales that generated significant gains, whereas 2024 saw realized losses from portfolio repositioning. Offsetting these factors, net investment income rose, and policyholder benefits declined compared with the year-ago period.
For the full year ending Dec. 31, 2024, the company recorded a net loss of $5 million, or $0.51 per share, compared with net income of $54.9 million, or $5.67 per share, in 2023.
The decline reflected lower realized gains and higher operating expenses. Additionally, insurance revenues decreased, and interest credited on policyholders' account balances increased. These were partially offset by higher net investment income and lower policyholder benefits.
In January, the company’s board declared a quarterly dividend of $0.14 per share. The dividend was expected to be paid on Feb. 12 to stockholders of record on Feb. 6.
For the first six months of 2024, the company recorded a net income of $6.3 million, up from $1.2 million in the first half of 2023. Results in H1 2024 were driven by an increase in investment revenue and a decrease in policyholder benefits. These gains were partially offset by a decrease in insurance revenue and 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.
