KC Life Profit Nearly Halved in Second Quarter

Kansas City Life Insurance Co. recorded net income of $5.2 million, or 54 cents per share, in the second quarter of 2016, a decrease of $5.7 million, or $0.47 per share, relative to the same quarter in the prior year. 

Net income totaled $9.5 million, or 98 cents per share, in the first six months of 2016, a decrease of $8.2 million, or 66 cents per share, relative to the first six months of 2015. 

The decrease in net income for the periods ending June 30 resulted from increased policyholder benefits and lower net investment income, both of which were impacted by the challenging interest rate environment.  Partially offsetting these items were increases in premiums, net of reinsurance. 

The growth in net premiums was largely due to increased sales of traditional life insurance, mainly from Old American Insurance Co.  In addition, net realized investment gains increased in the six months, resulting from gains on real estate and bonds.

Kansas City Life Insurance Company (OTCQX: KCLI) was established in 1895 and is based in Kansas City, Mo. 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, visit www.kclife.com.