Kansas City Life Insurance Company (KCLI, Financial) filed Quarterly Report for the period ended 2009-09-30.
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 $313.3 million; its shares were traded at around $27.15 with and P/S ratio of 0.8. The dividend yield of Kansas City Life Insurance Company stocks is 3.9%. Kansas City Life Insurance Company had an annual average earning growth of 1.5% over the past 10 years.
The Company s net income increased $20.4 million or 134% in the third quarter of 2009, versus the same quarter in the prior year, to a total of $5.2 million from a loss of $15.2 million. Net income per share increased $1.75 or 135% and was $0.45 per share versus a loss of $1.30 per share in the third quarter of 2008. Net income for the nine months increased $18.6 million or 188% compared to last year, to $8.7 million from a loss of $9.9 million. Net income per share increased $1.60 or 188% and was $0.75 per share versus a loss of $0.85 per share for the first nine months of 2008.
The largest factor in the increase in the third quarter of 2009 was a decline in realized investment losses, which totaled $1.1 million versus $29.3 million in the third quarter of 2008. Operating expenses decreased $2.5 million or 10% and income tax expense increased during the third quarter, reflecting higher pretax income.
The improvement in net income for the nine months versus the same period one year ago largely resulted from a $30.3 million reduction in realized investment losses, as these losses declined from $37.6 million for the first nine months of 2008 to $7.3 million in 2009. Partially offsetting this improvement were reductions in net investment income and contract charges of $4.2 million and $1.6 million, respectively, and a $2.6 million increase in operating expenses. In addition, income tax expense increased during the nine months, reflecting higher pretax income.
Total new deposits increased $9.4 million or 60% in the third quarter of 2009 compared with the third quarter of 2008. This increase was driven by a $12.8 million or 196% increase in new fixed deferred annuity deposits in the third quarter of 2009. The significant sales of fixed deferred annuities can be attributed to changes in consumer preferences resulting from the volatility in the equity markets. This volatility, along with the general effects of the recessionary environment, is also reflected in the reduction in sales of new universal life deposits, new variable universal life deposits and new variable annuities, which declined 23%, 65% and 43%, respectively, in the third quarter compared to one year ago. Total renewal deposits increased $0.8 million or 2% in the third quarter versus last year. This improvement resulted from higher fixed deferred annuity deposits, which increased $2.8 million or 67% compared to one year ago. This increase was partially offset by declines in the following products: $1.3 million or 6% in universal life deposits, 11% in variable universal life deposits and 10% in variable annuity deposits.
Total new deposits increased $34.9 million or 73% in the first nine months of 2009, compared to the same period one year ago. This increase was due to a $46.7 million or 260% increase in new fixed deferred annuity deposits. Partially offsetting this increase, new universal life deposits decreased $1.4 million or 19%, new variable universal life deposits declined $0.6 million or 42%, and new variable annuity deposits declined $9.7 million or 47%, compared to one year ago. Total renewal deposits were essentially flat, as a 24% increase in fixed deferred annuities was offset by a 3% decline in universal life deposits, an 8% decrease in variable universal life deposits, and a 6% decrease in variable annuities. The increase in fixed deferred annuity deposits was largely due to changes in consumer preferences, as mentioned above, as well as sales of a special rate offering on deferred annuities during the second quarter of 2009. The Company highlighted marketing of this product to take advantage of an opportunity that was identified in the marketplace.
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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 $313.3 million; its shares were traded at around $27.15 with and P/S ratio of 0.8. The dividend yield of Kansas City Life Insurance Company stocks is 3.9%. Kansas City Life Insurance Company had an annual average earning growth of 1.5% over the past 10 years.
Highlight of Business Operations:
The improvement in net income for the third quarter of 2009 compared to the third quarter of 2008 was due to several factors. First, the Company had a net realized investment loss of $1.1 million in the third quarter of 2009 compared to $29.3 million in the third quarter of 2008. In the third quarter of 2009, write-downs of investments due to the recognition of other-than-temporary impairments totaled $2.3 million, compared to $32.5 million in the third quarter of 2008. A second factor was reduced operating expenses. Partially offsetting these favorable factors, policyholder benefits increased, primarily due to an increase in benefit and contract reserves. In addition, income tax expense increased largely due to higher pretax income.The Company s net income increased $20.4 million or 134% in the third quarter of 2009, versus the same quarter in the prior year, to a total of $5.2 million from a loss of $15.2 million. Net income per share increased $1.75 or 135% and was $0.45 per share versus a loss of $1.30 per share in the third quarter of 2008. Net income for the nine months increased $18.6 million or 188% compared to last year, to $8.7 million from a loss of $9.9 million. Net income per share increased $1.60 or 188% and was $0.75 per share versus a loss of $0.85 per share for the first nine months of 2008.
The largest factor in the increase in the third quarter of 2009 was a decline in realized investment losses, which totaled $1.1 million versus $29.3 million in the third quarter of 2008. Operating expenses decreased $2.5 million or 10% and income tax expense increased during the third quarter, reflecting higher pretax income.
The improvement in net income for the nine months versus the same period one year ago largely resulted from a $30.3 million reduction in realized investment losses, as these losses declined from $37.6 million for the first nine months of 2008 to $7.3 million in 2009. Partially offsetting this improvement were reductions in net investment income and contract charges of $4.2 million and $1.6 million, respectively, and a $2.6 million increase in operating expenses. In addition, income tax expense increased during the nine months, reflecting higher pretax income.
Total new deposits increased $9.4 million or 60% in the third quarter of 2009 compared with the third quarter of 2008. This increase was driven by a $12.8 million or 196% increase in new fixed deferred annuity deposits in the third quarter of 2009. The significant sales of fixed deferred annuities can be attributed to changes in consumer preferences resulting from the volatility in the equity markets. This volatility, along with the general effects of the recessionary environment, is also reflected in the reduction in sales of new universal life deposits, new variable universal life deposits and new variable annuities, which declined 23%, 65% and 43%, respectively, in the third quarter compared to one year ago. Total renewal deposits increased $0.8 million or 2% in the third quarter versus last year. This improvement resulted from higher fixed deferred annuity deposits, which increased $2.8 million or 67% compared to one year ago. This increase was partially offset by declines in the following products: $1.3 million or 6% in universal life deposits, 11% in variable universal life deposits and 10% in variable annuity deposits.
Total new deposits increased $34.9 million or 73% in the first nine months of 2009, compared to the same period one year ago. This increase was due to a $46.7 million or 260% increase in new fixed deferred annuity deposits. Partially offsetting this increase, new universal life deposits decreased $1.4 million or 19%, new variable universal life deposits declined $0.6 million or 42%, and new variable annuity deposits declined $9.7 million or 47%, compared to one year ago. Total renewal deposits were essentially flat, as a 24% increase in fixed deferred annuities was offset by a 3% decline in universal life deposits, an 8% decrease in variable universal life deposits, and a 6% decrease in variable annuities. The increase in fixed deferred annuity deposits was largely due to changes in consumer preferences, as mentioned above, as well as sales of a special rate offering on deferred annuities during the second quarter of 2009. The Company highlighted marketing of this product to take advantage of an opportunity that was identified in the marketplace.
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