Kansas City Life Reports Q2 2025 Net Loss Amid Legal Settlement Accrual

Kansas City Life Insurance Company reported a second-quarter net loss of $28.1 million for 2025, primarily due to a $35.5 million after-tax legal settlement accrual related to class action lawsuits. Excluding this accrual, the company would have posted net income of $7.5 million. The first half of 2025 also reflected a net loss of $26.2 million, continuing a trend of earnings pressure driven by legal and investment factors.
In the fourth quarter of 2024, the company reported a $12.6 million net loss, attributed to lower insurance revenues, decreased net investment gains, and higher operating expenses, including a legal reserve related to the same litigation. For the full year 2024, Kansas City Life posted a net loss of $5 million despite higher investment income and lower policyholder benefits, due to portfolio repositioning losses and elevated expenses.
The ongoing class action litigation and related legal costs remain significant challenges for the company's financial outlook, impacting earnings and contributing to elevated operating expenses.