Kansas City Life Insurance Company still reported a loss for 2025, even as its fourth-quarter results returned to positive territory, according to the insurer’s latest financial report.
For the quarter ended December 31, 2025, the company recorded net income of $1.0 million, or $0.10 per share. This compares with a net loss of $14.0 million, or $1.45 per share, in the same quarter of 2024.
The improvement was linked to higher insurance and investment revenues as well as lower operating expenses. However, the quarter also saw higher policyholder benefits, particularly increased death benefits, which partially offset those gains.
Operating costs were lower because the company had set aside $16.7 million, after tax, in the fourth quarter of 2024 for class action lawsuits. Without that amount, net income for the fourth quarter of 2024 would have been $2.7 million, or $0.27 per share.
For the full year ended December 31, 2025, Kansas City Life posted a net loss of $20.8 million, or $2.14 per share, compared with a net loss of $9.6 million, or $0.99 per share, in 2024.
The yearly results were affected by money set aside for the lawsuits. The company recorded $35.6 million, after tax, for legal costs in the second quarter of 2025, in addition to the $16.7 million recorded in the fourth quarter of 2024.
Without those amounts, the company said net income would have been $14.8 million, or $1.53 per share, in 2025, and $7.1 million, or $0.73 per share, in 2024. The improvement mainly came from lower benefit payments to policyholders and higher investment income, although insurance income fell.
Kansas City Life also adopted Accounting Standards Update No. 2018-12, which changes how insurers account for long-term insurance contracts. The rule took effect on January 1, 2025 and was applied using January 1, 2023 as the transition date. As a result, the company adjusted its 2024 figures to match the new accounting method.
According to the company’s condensed income statement, revenue for the fourth quarter rose to $121.5 million in 2025 from $116.0 million a year earlier. For the full year, revenue was $485.5 million in 2025, compared with $490.8 million in 2024.
Kansas City Life paid dividends of $0.14 per share in the fourth quarter and $0.56 per share for the full year. The average number of shares outstanding remained at 9,683,414.
