Kansas City Life announces Q2 2020 results

Kansas City Life Insurance  recorded a 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 this was 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 its financial results during the second quarter and the 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, its mortality experience was negatively impacted.

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.