1. KCLI reported Q1 2025 net income of $1.9 million, up from $1.6 million. 2. Policyholder benefits decreased by 6%, impacting profitability. 3. Operating expenses declined by 3%, helping to improve earnings. 4. Insurance revenues fell by 4% while total investment revenues dropped by 13%. 5. A one-time tax benefit of $4.2 million positively influenced net income.
While KCLI's net income increased, declining revenues raise concerns. Historical data shows declining revenues can precede longer-term profitability issues, exemplified during previous recessionary periods.
The article details KCLI's performance metrics, directly impacting investor sentiment and stock price outlook.
Short-term earnings are bolstered by a one-time tax benefit. However, ongoing revenue declines may negatively affect future earnings, requiring monitoring.
/PRNewswire/ -- Kansas City Life Insurance Company recorded net income of $1.9 million or $0.19 per share in the first quarter of 2025 compared to net income of $1.6 million or $0.16 per share in the first quarter of 2024.
This result included a $4.2 million or 6% decrease in policyholder benefits, net of reinsurance, and a $0.9 million or 3% decline in operating expenses in the first quarter of 2025 compared to the first quarter of 2024. In addition, we recorded an income tax benefit of $4.2 million in the first quarter of 2025 compared to an income tax expense of $0.4 million in the first quarter of 2024. The increased tax benefit resulted from a one-time tax benefit recorded in the first quarter of 2025. Partially offsetting these, insurance revenues decreased $3.1 million or 4% and total investment revenues decreased $5.3 million or 13%, largely due to a change in the fair value of certain investments 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.
(amounts in thousands, except share data)
| Quarter Ended | March 31 | 2025 | 2024 |
|---|---|---|---|
| Revenues | $118,975 | $127,308 | |
| Net income | $1,876 | $1,554 | |
| Net income per share, basic and diluted | $0.19 | $0.16 | |
| Dividends paid | $0.14 | $0.14 | |
| Average number of shares outstanding | 9,683,414 | 9,683,414 |