Kansas City Life Insurance Company (KCLI, Financial) filed Quarterly Report for the period ended 2009-03-31.
Kansas City Life Insurance Company primarily operates in four business segments: Kansas City Life Insurance Company divided between its individual and group businesses and its two insurance affiliates Sunset Life Insurance Company of America (Sunset) and Old American Insurance Company (Old American). KCL markets its individual products principally interest sensitive and variable products through a career general agency sales force. Kansas City Life Insurance Company has a market cap of $242 million; its shares were traded at around $21.15 with and P/S ratio of 0.6. The dividend yield of Kansas City Life Insurance Company stocks is 5.1%. Kansas City Life Insurance Company had an annual average earning growth of 1.5% over the past 10 years.
Consolidated total premiums increased 5% in the first quarter of 2009 versus the same period in the prior year, as total new premiums increased 13% and total renewal premiums increased 2%. New premiums increased $1.2 million, reflecting a $1.4 million increase in immediate annuities. The Company has experienced an increase in annuity premiums in recent quarters, reflecting changes in consumer product preferences. New individual life premiums increased 4%, which includes a 10% increase in new premiums in the Old American segment. The increase in new premiums from the Old American segment reflects a combination of new products and enhanced distribution expansion. Partially offsetting these, new group life premiums decreased 12% and new group accident and health premiums decreased 8%, the latter reflecting a decrease in dental premiums. Total renewal
Total new deposits increased $4.2 million or 26% in the first quarter of 2009 compared with the first quarter of 2008. This increase was driven by a $9.8 million or 176% increase in new fixed deferred annuity deposits during the first quarter of 2009. This improvement can largely be attributed to changes in consumer preferences resulting from the volatility in the equity markets. This volatility is reflected in the reduction in sales of new universal life deposits, new variable universal life deposits and new variable annuities, which declined 24%, 20% and 63%, respectively in the first quarter compared to one year ago. Renewal deposits increased $1.0 million or 3% in the first quarter versus last year. This increase was due to a $0.7 million or 28% increase in variable annuity and a $0.7 million or 16% increase in fixed deferred annuity deposits. Partially offsetting these, renewal deposits declined 4% for variable universal life products and 1% for universal life products.
Insurance revenues consist of premiums from traditional insurance products, and contract charges less reinsurance ceded. In the first quarter of 2009, total insurance revenues increased $1.6 million or 3%, reflecting a 5% increase in total premiums. This was partially offset by a 2% decrease in contract charges and a 1% decrease in reinsurance ceded. Total annuity premiums increased 47%, and total accident and health premiums increased 7%, while total individual life premiums were flat compared with last year. Total group life premiums increased 3%. Total individual life premiums declined 1% from the Individual Insurance segment and were flat in the Old American segment.
Reinsurance ceded decreased 1% in the first quarter versus last year. While reinsurance ceded was relatively flat for the Individual Insurance and Group segments, reinsurance ceded in the Old American segment declined 12%, reflecting the runoff of a large closed block of reinsured business.
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Kansas City Life Insurance Company primarily operates in four business segments: Kansas City Life Insurance Company divided between its individual and group businesses and its two insurance affiliates Sunset Life Insurance Company of America (Sunset) and Old American Insurance Company (Old American). KCL markets its individual products principally interest sensitive and variable products through a career general agency sales force. Kansas City Life Insurance Company has a market cap of $242 million; its shares were traded at around $21.15 with and P/S ratio of 0.6. The dividend yield of Kansas City Life Insurance Company stocks is 5.1%. Kansas City Life Insurance Company had an annual average earning growth of 1.5% over the past 10 years.
Highlight of Business Operations:
The primary factor in the decline in the first quarter of 2009 was net realized investment losses, which totaled $4.7 million versus a small realized gain in the first quarter of 2008. Also contributing to the decline was a $3.3 million or 7% decrease in net investment income, a $3.2 million or 7% increase in policyholder benefits, a $1.4 million or 12% increase in amortization of deferred acquisition costs and value of business acquired, and a $1.9 million or 8% increase in operating expenses. These were partially offset by a $2.1 million or 5% increase in premiums and a $4.4 million change in income tax expense for the two periods.Consolidated total premiums increased 5% in the first quarter of 2009 versus the same period in the prior year, as total new premiums increased 13% and total renewal premiums increased 2%. New premiums increased $1.2 million, reflecting a $1.4 million increase in immediate annuities. The Company has experienced an increase in annuity premiums in recent quarters, reflecting changes in consumer product preferences. New individual life premiums increased 4%, which includes a 10% increase in new premiums in the Old American segment. The increase in new premiums from the Old American segment reflects a combination of new products and enhanced distribution expansion. Partially offsetting these, new group life premiums decreased 12% and new group accident and health premiums decreased 8%, the latter reflecting a decrease in dental premiums. Total renewal
Total new deposits increased $4.2 million or 26% in the first quarter of 2009 compared with the first quarter of 2008. This increase was driven by a $9.8 million or 176% increase in new fixed deferred annuity deposits during the first quarter of 2009. This improvement can largely be attributed to changes in consumer preferences resulting from the volatility in the equity markets. This volatility is reflected in the reduction in sales of new universal life deposits, new variable universal life deposits and new variable annuities, which declined 24%, 20% and 63%, respectively in the first quarter compared to one year ago. Renewal deposits increased $1.0 million or 3% in the first quarter versus last year. This increase was due to a $0.7 million or 28% increase in variable annuity and a $0.7 million or 16% increase in fixed deferred annuity deposits. Partially offsetting these, renewal deposits declined 4% for variable universal life products and 1% for universal life products.
Insurance revenues consist of premiums from traditional insurance products, and contract charges less reinsurance ceded. In the first quarter of 2009, total insurance revenues increased $1.6 million or 3%, reflecting a 5% increase in total premiums. This was partially offset by a 2% decrease in contract charges and a 1% decrease in reinsurance ceded. Total annuity premiums increased 47%, and total accident and health premiums increased 7%, while total individual life premiums were flat compared with last year. Total group life premiums increased 3%. Total individual life premiums declined 1% from the Individual Insurance segment and were flat in the Old American segment.
Reinsurance ceded decreased 1% in the first quarter versus last year. While reinsurance ceded was relatively flat for the Individual Insurance and Group segments, reinsurance ceded in the Old American segment declined 12%, reflecting the runoff of a large closed block of reinsured business.
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