Kansas City Life Insurance Company Reports Significant Financial Turnaround

Kansas City Life Insurance Company reported a net income of $1.0 million, or $0.10 per share, for the fourth quarter of 2025, marking a significant recovery from the net loss of $14.0 million, or $1.45 per share, in the same period of 2024. This financial turnaround was driven by increased insurance and investment revenues, along with lower operating expenses. Despite these gains, a rise in policyholder benefits, particularly death benefits, partially offset the improvements. In the previous year, the company faced a $16.7 million legal accrual related to class action lawsuits, which, if excluded, would have placed the net income for the fourth quarter of 2024 at $2.7 million, or $0.27 per share.

For the fiscal year 2025, Kansas City Life reported an overall net loss of $20.8 million, equivalent to $2.14 per share, compared to a net loss of $9.6 million, or $0.99 per share, in 2024. The results were significantly impacted by a $35.6 million legal accrual recorded in the second quarter of 2025. Excluding these substantial legal expenses, the company's net income would have been $14.8 million, or $1.53 per share, for 2025. The improvement in annual financial performance was attributed to reduced policyholder benefits and increased investment revenue, despite a minor decline in insurance revenues.

The company adhered to the Accounting Standards Update No. 2018-12, impacting long-duration contracts, which amended measurement models and disclosure requirements. This update was retroactive, affecting 2024's recast financial statements. More information is available in the 2025 Annual Report on Kansas City Life’s official website. Founded in 1895, the company continues to provide life insurance and annuity products across 49 states and the District of Columbia. The Board of Directors declared a new quarterly dividend of $0.18 per share, reflecting a $0.04 increase. Notably, in the third quarter of 2025, net income rose to $3.2 million, or $0.33 per share, up from $1.3 million in the previous year.