Kansas City Life Insurance Company (OTCQX: KCLI) has reported a net loss of $12.6 million for the fourth quarter of 2024. This marks a substantial decline from the net income of $49.1 million recorded in the same period the previous year. The loss translates to $1.30 per share, down from $5.07 per share in Q4 2023.
Several factors contributed to this downturn. Lower insurance revenues and net investment gains were significant contributors. In contrast to 2023, when real estate sales generated substantial gains, 2024 saw realized losses due to portfolio repositioning. Additionally, operating expenses increased significantly, partly due to a $21.1 million pretax legal reserve established for class action lawsuits.
Despite these challenges, net investment income increased, and policyholder benefits decreased compared to the previous year. These factors partially offset the negative impacts but were insufficient to prevent the overall loss.
For the full year ending December 31, 2024, Kansas City Life Insurance Company reported a net loss of $5.0 million, or $0.51 per share. This is a marked decline from the net income of $54.9 million, or $5.67 per share, in 2023. The annual decline was driven by lower realized gains, increased operating expenses, and decreased insurance revenues. However, increased net investment income and reduced policyholder benefits provided some relief.
Established in 1895, Kansas City Life Insurance Company is headquartered in Kansas City, Missouri. The company specializes in providing financial protection through life insurance and annuities, operating in 49 states and the District of Columbia.
Financial Highlights
- Revenues: $115,820,000 in Q4 2024, down from $186,373,000 in Q4 2023.
- Net Income/Loss: A loss of $12,575,000 in Q4 2024, compared to a gain of $49,099,000 in Q4 2023.
- Annual Revenues: $490,787,000 in 2024, down from $558,920,000 in 2023.
- Annual Net Income/Loss: A loss of $4,965,000 in 2024, compared to a gain of $54,920,000 in 2023.
As Kansas City Life Insurance Company navigates these challenges, it remains focused on its core business of providing financial security to individuals and families across the U.S.
