KANSAS CITY, Mo., July 31, 2026 /PRNewswire/ -- Kansas City Life Insurance Company recorded net income of $7.8 million or $0.80 per share in the second quarter of 2026 compared to a net loss of $28.7 million or $2.96 per share in the second quarter of 2025. The primary factor for the increase in net income in the second quarter of 2026 was lower operating expenses compared to the prior year. Operating expenses were $45.0 million higher in the second quarter of 2025 from a legal settlement accrual related to class action lawsuits.
Excluding this legal settlement accrual, net income would have been $6.8 million or $0.71 per share in the second quarter of 2025. Excluding the legal settlement accrual, net income for the second quarter would have been $1.0 million or 14% higher in 2026 compared to the prior year. This increase in net income for the second quarter primarily resulted from a $3.5 million or 8% increase in investment revenues. This was partially offset by a $2.6 million or 4% increase in policyholder benefits compared to the prior year.
Net income totaled $17.3 million or $1.79 per share in the first six months of 2026 compared to a net loss of $24.6 million or $2.53 per share in the first six months of 2025. The primary factor for the increase in net income in the first six months of 2026 was lower operating expenses from the 2025 legal settlement accrual mentioned above.
Excluding this legal settlement accrual, net income would have been $11.0 million or $1.14 per share in the first six months of 2025. Excluding the legal settlement accrual, net income for the six months would have been $6.4 million or 58% higher in 2026 than the prior year. This increase in net income was largely due to a $5.3 million or 6% increase in investment revenues and a $2.3 million or 4% decrease in operating expenses. These improvements were partially offset by a $2.1 million or 1% decline in insurance revenues compared to the prior year.
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.
A Condensed Consolidated Income Statement appears on the next page.
Kansas City Life Insurance Company Condensed Consolidated Income Statement (amounts in thousands, except share data) | |||||||||||
Quarter Ended | Six Months Ended June 30 | ||||||||||
2026 | 2025 | 2026 | 2025 | ||||||||
Revenues | $ | 125,881 | $ | 122,410 | $ | 243,692 | $ | 240,400 | |||
Net income (loss) | $ | 7,768 | $ | (28,726) | $ | 17,339 | $ | (24,566) | |||
Net income (loss) per share, basic and diluted | $ | 0.80 | $ | (2.96) | $ | 1.79 | $ | (2.53) | |||
Dividends paid | $ | 0.18 | $ | 0.14 | $ | 0.36 | $ | 0.28 | |||
Average number of shares outstanding | 9,683,414 | 9,683,414 | 9,683,414 | 9,683,414 | |||||||
SOURCE Kansas City Life Insurance Company
