KANSAS CITY, Mo., March 7, 2019 /PRNewswire/ -- Kansas City Life Insurance Company recorded net income of $3.8 million or $0.40 per share in the fourth quarter of 2018, a decrease of $30.3 million or $3.12 per share relative to the fourth quarter of 2017. Net income totaled $15.7 million or $1.62 per share for the year ended December 31, 2018, down from $51.5 million or $5.32 per share for the year ended December 31, 2017.
On October 1, 2018, the Company acquired all of the issued and outstanding stock of Grange Life Insurance Company (Grange Life) from Grange Mutual Casualty Company, for approximately $75 million, subject to certain adjustments under the terms of the agreement. Grange Life contributed $0.8 million in net income to the consolidated results of operations for the fourth quarter and year ended December 31, 2018.
Excluding Grange Life, net income decreased $31.1 million or $3.20 per share in the fourth quarter of 2018 and $36.7 million or $3.78 in the year ended December 31, 2018 compared to the same periods of 2017. The declines for both periods were largely due to the lowering of the corporate tax rate to 21% that resulted from the Tax Cuts and Jobs Act passed on December 22, 2017. The impact of the Tax Cuts and Jobs Act provided a $30.5 million benefit in the fourth quarter and year ended December 31, 2017. In addition, the declines reflected higher policyholder benefits and amortization of deferred acquisition costs. Also, investment revenues declined, primarily reflecting reduced reinvestment rates available in the marketplace. Partially offsetting these were increased insurance revenues and lower operating expenses.
Kansas City Life Insurance Company 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.
Kansas City Life Insurance Company Condensed Consolidated Income Statement (amounts in thousands, except share data) | |||||||||||
Quarter Ended | Year Ended | ||||||||||
December 31 | December 31 | ||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||
Revenues | $ | 123,818 | $ | 112,157 | $ | 461,032 | $ | 450,757 | |||
Net income | $ | 3,827 | $ | 34,113 | $ | 15,672 | $ | 51,541 | |||
Net income per share, basic and diluted | $ | 0.40 | $ | 3.52 | $ | 1.62 | $ | 5.32 | |||
Dividends paid | $ | 0.27 | $ | 0.27 | $ | 1.08 | $ | 1.08 | |||
Average number of shares outstanding | 9,683,414 | 9,683,414 | 9,683,414 | 9,683,414 | |||||||
SOURCE Kansas City Life Insurance
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