Kansas City Life Insurance Company reported net income of $1.9 million, or $0.19 per share, for the first quarter of 2025, up from $1.6 million, or $0.16 per share, in the same period of 2024.

The improvement in earnings was driven by a $4.2 million decrease in policyholder benefits, net of reinsurance, and a $900,000 reduction in operating expenses.

The company also benefited from a $4.2 million income tax benefit, compared to a $400,000 tax expense in Q1 2024. The tax benefit was attributed to a one-time item.

However, Kansas City Life reported a decline in both insurance and investment revenues. Insurance revenues fell by $3.1 million, or 4% year-over-year, and investment revenues decreased by $5.3 million, or 13% year-over-year, primarily due to changes in the fair value of certain investments.

For the fourth quarter of 2024, the company reported a net loss of $12.6 million, or $1.30 per share, compared to a net profit of $49.1 million, or $5.07 per share, in the same period of the prior year. The loss was attributed to lower insurance revenues, reduced net investment gains, and a legal reserve of $21.1 million related to ongoing class action lawsuits.

In recent legal developments, the US Court of Appeals for the Eighth Circuit ruled in January that Kansas City Life had violated contract terms by altering cost-of-insurance charges on its policies.

The court determined that the charges could not include the company’s own profits and expenses, and should instead be based on factors such as age, sex, risk class, and expected future mortality. The ruling is expected to have broader implications for the company's future policy adjustments.

Kansas City Life, established in 1895 and headquartered in Kansas City, Missouri, provides life insurance and annuity products across 49 US states and the District of Columbia. The company continues to face challenges with market conditions, but remains focused on its strategy for managing costs and addressing legal matters.