Kansas City Life Insurance Company reported a net loss of $28.1 million, or $2.90 per share, for the second quarter of 2025, compared to net income of $4.7 million, or $0.49 per share, in the same period of 2024.
The loss was primarily driven by the establishment of a $35.5 million after-tax legal settlement accrual related to a potential resolution of class action lawsuits. Excluding the impact of the legal accrual, the company would have posted net income of $7.5 million, or $0.77 per share.
For the first half of 2025, Kansas City Life reported a net loss of $26.2 million, or $2.71 per share, compared to net income of $6.3 million, or $0.65 per share, for the same period a year earlier.
The second-quarter and first-half results continue a trend of earnings pressure linked to legal and investment-related factors.
By comparison, in the fourth quarter of 2024, Kansas City Life reported a net loss of $12.6 million, or $1.30 per share, compared with net income of $49.1 million, or $5.07 per share, in the same quarter of 2023. That decline was attributed to lower insurance revenues, decreased net investment gains, and higher operating expenses, including a $21.1 million pretax legal reserve related to the same class action litigation.
For the full year ended Dec. 31, 2024, the company posted a net loss of $5 million, or $0.51 per share, versus net income of $54.9 million, or $5.67 per share, in 2023. While net investment income rose and policyholder benefits declined, those factors were outweighed by losses from portfolio repositioning and elevated expenses.
The legal proceedings continue to weigh on results in 2025, with their resolution remaining a key factor in the company’s financial outlook.
