Kansas City Life Announces Fourth Quarter 2020 Results
KANSAS CITY, Mo., March 5, 2021 /PRNewswire/ -- Kansas City Life Insurance Company recorded a net loss of $0.8 million or $0.07 per share in the fourth quarter of 2020 compared to net income of $10.6 million or $1.09 per share in the fourth quarter of 2019. Net income totaled $15.2 million or $1.57 per share for the year ended December 31, 2020, down from $24.4 million or $2.52 per share for the year ended December 31, 2019.
The largest contributor to the decrease in net income in the fourth quarter of 2020 compared to the fourth quarter of 2019 was increased policyholder benefits, primarily due to higher death benefits. Also contributing to the decrease in net income was lower insurance revenues compared to the same period in the prior year. Partially offsetting these was an increase in net realized investment gains.
The largest factor in the decline in net income for the year ended December 31, 2020 compared to the prior year was increased policyholder benefits, reflecting higher death benefits. Also contributing to the decline in net income was a decrease in net investment income along with an increase in amortization of deferred acquisition costs compared to one year earlier. Partially offsetting these were an increase in insurance revenues and a decrease in operating expenses. In addition, net realized investment gains increased compared to the prior year, largely due to the sale of an industrial real estate property that generated a large investment gain in the second quarter of 2020.
The COVID-19 pandemic has negatively impacted our financial results for both the fourth quarter and the year ended December 31, 2020. These impacts include a negative impact on mortality experience that has contributed to higher policyholder benefits and increased financial market volatility.
Kansas City Life Insurance Company (OTCQX: KCLI) was established in 1895 and is based in Kansas City, Missouri. The Company's primary business is providing financial protection through the sale of life insurance and annuities. The Company operates in 49 states and the District of Columbia.
Please refer to our 2020 Annual Report for additional information, which is available at www.kclife.com.
Kansas City Life Insurance Company | |||||||||||
Condensed Consolidated Income Statement | |||||||||||
(amounts in thousands, except share data) | |||||||||||
Quarter Ended | Year Ended | ||||||||||
December 31 | December 31 | ||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||
Revenues | $ | 126,098 | $ | 126,265 | $ | 523,910 | $ | 512,693 | |||
Net income (loss) | $ | (750) | $ | 10,589 | $ | 15,170 | $ | 24,427 | |||
Net income (loss) per share, basic and diluted | $ | (0.07) | $ | 1.09 | $ | 1.57 | $ | 2.52 | |||
Dividends paid | $ | 0.27 | $ | 0.27 | $ | 1.08 | $ | 1.08 | |||
Average number of shares outstanding | 9,683,414 | 9,683,414 | 9,683,414 | 9,683,414 | |||||||
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SOURCE Kansas City Life Insurance Company
