Kansas City Life Announces Fourth Quarter 2017 Results
KANSAS CITY, Mo., Feb. 26, 2018 /PRNewswire/ -- Kansas City Life Insurance Company recorded net income of $34.1 million or $3.52 per share in the fourth quarter of 2017, an increase of $28.5 million or $2.94 per share relative to the fourth quarter of 2016. The improvement in 2017 was largely due to the lowering of the corporate tax rate to 21% that resulted from the Tax Cuts and Jobs Act passed on December 22, 2017. The impact of the Tax Cuts and Jobs Act provided a $30.5 million benefit in the fourth quarter of 2017. In addition, total insurance revenues, from both premiums and contract charges, increased along with net realized investment gains compared to the prior year. Partially offsetting these was a decline in net investment income, reflecting the low interest rate environment, and increased policyholder benefits and operating expenses.
Net income totaled $51.5 million or $5.32 per share for the year ended December 31, 2017, up from $22.3 million or $2.30 per share for the year ended December 31, 2016. The improvement in 2017 primarily resulted from the impact of the Tax Cuts and Jobs Act, as mentioned above. In addition, the improvement in 2017 reflected increased insurance revenues, from both premiums and contract charges, as well as lower policyholder benefits. Partially offsetting these was a decrease in net investment income, reflecting the low interest rate environment, and increases in the amortization of deferred acquisition costs and operating expenses.
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. For more information, please visit 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 | ||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||
Revenues | $ | 112,174 | $ | 111,735 | $ | 450,702 | $ | 445,022 | |||
Net income | $ | 34,113 | $ | 5,624 | $ | 51,541 | $ | 22,316 | |||
Net income per share, basic and diluted | $ | 3.52 | $ | 0.58 | $ | 5.32 | $ | 2.30 | |||
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
