KANSAS CITY, Mo., March 9, 2026 /PRNewswire/ -- Kansas City Life Insurance Company recorded net income of $1.0 million or $0.10 per share in the fourth quarter of 2025 compared to a net loss of $14.0 million or $1.45 per share in the fourth quarter of 2024. Significant factors in the improvement in net income in the fourth quarter of 2025 were higher insurance and investment revenues and lower operating expenses, which were partially offset by increased policyholder benefits, notably increased death benefits. Operating expenses were lower in 2025 compared to 2024 as a $16.7 million legal accrual, net of tax, was established in the fourth quarter of 2024 related to class action lawsuits. Excluding this legal accrual, net income would have been $2.7 million or $0.27 per share in the fourth quarter of 2024.
We recorded a net loss of $20.8 million or $2.14 per share for the year ended December 31, 2025, compared to a net loss of $9.6 million or $0.99 per share for the year ended December 31, 2024. A legal accrual of $35.6 million, net of tax, was established in the second quarter of 2025 and the legal accrual of $16.7 million, net of tax, mentioned above, was established in the fourth quarter of 2024 related to class action lawsuits. Excluding these legal accruals, net income would have been $14.8 million or $1.53 per share in 2025 and $7.1 million or $0.73 per share in 2024. After excluding the legal accruals, the increase in net income in 2025 compared to 2024 was primarily due to lower policyholder benefits and increased investment revenues. Partially offsetting this was a decrease in insurance revenues.
We adopted Accounting Standards Update No. 2018-12 Targeted Improvements to the Accounting for Long Duration Contracts, effective January 1, 2025, with December 31, 2025 marking the first required reporting period for Kansas City Life. This guidance revises the measurement models and disclosure requirements for long-duration contracts and was applied with a transition date of January 1, 2023. Accordingly, the results for 2024 included herein have been recast. For additional information, please refer to our 2025 Annual Report at www.kclife.com.
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.
Kansas City Life Insurance Company | |||||||||||
Condensed Consolidated Income Statement | |||||||||||
(amounts in thousands, except share data) | |||||||||||
Quarter Ended | Year Ended | ||||||||||
December 31 | December 31 | ||||||||||
2025 | 2024 | 2025 | 2024 | ||||||||
Revenues | $ | 121,526 | $ | 116,035 | $ | 485,450 | $ | 490,803 | |||
Net income (loss) | $ | 972 | $ | (14,007) | $ | (20,761) | $ | (9,570) | |||
Net income (loss) per share, basic and diluted | $ | 0.10 | $ | (1.45) | $ | (2.14) | $ | (0.99) | |||
Dividends paid | $ | 0.14 | $ | 0.14 | $ | 0.56 | $ | 0.56 | |||
Average number of shares outstanding | 9,683,414 | 9,683,414 | 9,683,414 | 9,683,414 | |||||||
SOURCE Kansas City Life Insurance Company
