Kansas City Life Announces Second Quarter 2020 Results
KANSAS CITY, Mo., July 30, 2020 /PRNewswire/ -- Kansas City Life Insurance Company recorded net income of $17.0 million or $1.75 per share in the second quarter of 2020, an increase of $11.7 million or $1.21 per share relative to the second quarter of 2019. Net income totaled $17.1 million or $1.77 per share in the first six months of 2020, up from $9.3 million or $0.96 per share in the first six months of 2019.
The largest factor in the improvement in net income in the second quarter and first six months of 2020 compared to the same periods in the prior year was the opportunistic sale of an industrial real estate property that generated a large investment gain. Also contributing to the improvement in both periods were an increase in insurance revenues and a decrease in policyholder benefits. Partially offsetting these were a decrease in net investment income and increased amortization of deferred acquisition costs. In addition, operating expenses increased slightly during the second quarter but decreased during the first six months of 2020 compared to the prior year.
The COVID-19 pandemic has negatively impacted our financial results during the second quarter and first six months of 2020. The increased financial market volatility, coupled with a further drop in interest rates, contributed to lower net investment income. In addition, our mortality experience was negatively impacted. We have instituted our business continuity plan and our home office remains open to ensure that we continue to provide Security Assured to our policyholders, customers, and field force.
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 Quarterly Report for the period ended June 30, 2020 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 | Six Months Ended | ||||||||||
June 30 | June 30 | ||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||
Revenues | $ | 146,772 | $ | 129,884 | $ | 269,807 | $ | 259,987 | |||
Net income | $ | 16,969 | $ | 5,281 | $ | 17,119 | $ | 9,316 | |||
Net income per share, basic and diluted | $ | 1.75 | $ | 0.54 | $ | 1.77 | $ | 0.96 | |||
Dividends paid | $ | 0.27 | $ | 0.27 | $ | 0.54 | $ | 0.54 | |||
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
