KANSAS CITY, Mo., Oct. 30, 2020 /PRNewswire/ -- Kansas City Life Insurance Company recorded a net loss of $1.2 million or $0.13 per share in the third quarter of 2020 compared to net income of $4.5 million or $0.47 per share in the third quarter of 2019. Net income totaled $15.9 million or $1.64 per share in the first nine months of 2020, up from $13.8 million or $1.43 per share in the first nine months of 2019.
The largest contributor to the decrease in net income in the third quarter of 2020 compared to the third quarter of 2019 was increased policyholder benefits, primarily due to higher death benefits. Also contributing to the decrease in net income were lower net investment income and increased amortization of deferred acquisition costs. Partially offsetting these were increased premiums, net of reinsurance, higher net realized investment gains, and lower operating expenses.
The largest factor in the improvement in net income in the first nine months of 2020 compared to the same period in 2019 was the opportunistic sale of an industrial real estate property that generated a large investment gain. Also, an increase in insurance revenues and a decrease in operating expenses contributed to the improvement in net income. Partially offsetting these was a decrease in net investment income and increases in amortization of deferred acquisition costs and policyholder benefits compared to the prior year.
The COVID-19 pandemic continues to impact our financial results for both the third quarter and first nine months of 2020. These impacts include a negative impact on mortality experience that has contributed to higher policyholder benefits and increased financial market volatility.
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.
Please refer to our Quarterly Report for the period ended September 30, 2020 for additional information, which is available at www.kclife.com.
Kansas City Life Insurance Company Condensed Consolidated Income Statement (amounts in thousands, except share data) | |||||||||||
Quarter Ended | Nine Months Ended | ||||||||||
September 30 | September 30 | ||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||
Revenues | $ | 128,005 | $ | 126,441 | $ | 397,812 | $ | 386,428 | |||
Net income (loss) | $ | (1,199) | $ | 4,522 | $ | 15,920 | $ | 13,838 | |||
Net income (loss) per share, basic and diluted | $ | (0.13) | $ | 0.47 | $ | 1.64 | $ | 1.43 | |||
Dividends paid | $ | 0.27 | $ | 0.27 | $ | 0.81 | $ | 0.81 | |||
Average number of shares | 9,683,414 | 9,683,414 | 9,683,414 | 9,683,414 | |||||||
SOURCE Kansas City Life Insurance Company
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