Kansas City Life Insurance Company recorded net income of $13.1 million or $1.36 per share in the fourth quarter of 2021 compared to a net loss of $0.8 million or $0.07 per share in the fourth quarter of 2020. Net income totaled $10.7 million or $1.11 per share for the year ended December 31, 2021, down from $15.2 million or $1.57 per share for the year ended December 31, 2020.
The largest factor in the increase in net income in the fourth quarter of 2021 compared to the fourth quarter of 2020 was an increase in net investment gains, reflecting the sale of an industrial real estate property. In addition, we completed the sale of our subsidiary Sunset Life Insurance Company in the fourth quarter of 2021, which generated a gain. Also, policyholder benefits decreased compared to one year earlier. Partially offsetting these were declines in insurance revenues and net investment income.
The decrease in net income for the year ended December 31, 2021, compared to the prior year reflected declines in insurance revenues and net investment income. Partially offsetting these were an increase in net investment gains, largely from the sale of a real estate property, and the gain on the sale of Sunset Life Insurance Company. In addition, the amortization of deferred acquisition costs and operating expenses decreased compared to the prior year.
The COVID-19 pandemic and related effects continue to have a negative impact on our financial results. The primary impacts are a sizeable increase in excess mortality, largely resulting from the impacts of the pandemic, and the continued low interest rate environment.
Kansas City Life Insurance Company (OTCQX: KCLI) was established in 1895 and is based in Kansas City, Missouri. The Company’s primary business is providing financial protection through the sale of life insurance and annuities. The Company operates in 49 states and the District of Columbia.
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