#United States #Kansas City #Legal Settlement #Kansas City Life #financial loss

Kansas City Life Insurance Reports Significant Losses in Q2 2025

On August 1, 2025, Kansas City Life Insurance Company unveiled its financial results for the second quarter, revealing a substantial net loss of $28.1 million, equivalent to $2.90 per share. This stark contrast to a net income of $4.7 million, or $0.49 per share, in the same quarter of 2024 highlights a significant downturn for the company. The primary reason behind this dramatic loss was the establishment of a hefty legal settlement accrual amounting to $35.5 million, net of taxes, which is associated with pending class action lawsuits.

If this legal settlement accrual had not been accounted for, Kansas City Life would have reported a net income of $7.5 million, or $0.77 per share for the second quarter of 2025. Factors contributing to this adjusted profit included increased investment revenues and a reduction in policyholder benefits. However, these were somewhat mitigated by a decline in overall insurance revenues, underscoring a challenging market environment.

In the first half of 2025, Kansas City Life’s losses compounded, resulting in a net loss of $26.2 million, or $2.71 per share, compared to a net income of $6.3 million, or $0.65 per share, in the same period of the previous year. Just like in the second quarter, the legal settlement accrual was a principal factor in this downturn. Excluding this charge, the company would have recorded a net income of $9.3 million, or $0.96 per share, for the first six months of 2025. The earnings before adjustments signify an improvement primarily through lower policyholder benefits, despite facing declines in both insurance and investment revenues.

Kansas City Life Insurance Company, established in 1895, is headquartered in Kansas City, Missouri, and has been a significant player in the life insurance and annuities market across 49 states and the District of Columbia. The company's core business reflects its commitment to providing financial protection to its policyholders through diverse products and services. To keep track of the latest insights and updates from Kansas City Life, one can visit their official website at www.kclife.com.

Financial Summary

Quarter Ended June 30

| Financial Metric | 2025 | 2024 |
|-------|----|---|
| Revenues | $122,299,000 | $122,512,000 |
| Net income (loss) | $(28,073,000)| $4,735,000 |
| Net income (loss) per share | $(2.90) | $0.49 |
| Dividends paid | $0.14 | $0.14 |
| Average number of shares outstanding | 9,683,414 | 9,683,414 |

These financial results shed light on the company's current financial health, driving the need for strategic adjustments to navigate through ongoing legal challenges and a fluctuating market. Stakeholders and investors will undoubtedly keep a close watch on how Kansas City Life responds to this adversity and the measures they implement moving forward.