KANSAS CITY LIFE INSURANCE CO

CIK:0000054473|SEC Filings

Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Insurance revenues:
Net premiums	$ 39,378	$ 42,480	$ 120,196	$ 125,601
Contract charges	28,632	29,541	83,467	89,173
Total insurance revenues	68,010	72,021	203,663	214,774
Investment revenues:
Net investment income	38,277	40,608	118,175	122,650
Net realized investment gains, excluding other-than-temporary impairment losses	4,475	981	6,724	3,430
Net impairment losses recognized in earnings:
Total other-than-temporary impairment losses	(419)	(765)	(2,189)	(1,221)
Portion of impairment losses recognized in other comprehensive income (loss)	(9)	433	(171)	620
Net other-than-temporary impairment losses recognized in earnings	(428)	(332)	(2,360)	(601)
Total investment revenues	42,324	41,257	122,539	125,479
Other revenues	1,927	2,385	5,737	7,061
Total revenues	112,261	115,663	331,939	347,314
BENEFITS AND EXPENSES
Policyholder benefits	51,553	49,675	149,699	152,582
Interest credited to policyholder account balances	18,597	18,999	55,626	57,205
Amortization of deferred acquisition costs	9,244	9,797	19,586	31,154
Operating expenses	24,707	25,588	73,790	74,321
Total benefits and expenses	104,101	104,059	298,701	315,262
Income before income tax expense	8,160	11,604	33,238	32,052
Income tax expense	2,725	3,644	10,126	9,795
NET INCOME	5,435	7,960	23,112	22,257
COMPREHENSIVE INCOME (LOSS), NET OF TAXES
Change in net unrealized gains on securities available for sale, net of DAC and VOBA	(1,783)	(9,096)	(18,941)	29,177
Change in future policy benefits	139	623	1,289	(5,939)
Change in policyholder account balances	17	41	166	(203)
Other comprehensive income (loss)	(1,627)	(8,432)	(17,486)	23,035
COMPREHENSIVE INCOME (LOSS)	$ 3,808	$ (472)	$ 5,626	$ 45,292
Basic and diluted earnings per share:
Net income (USD per share)	$ 0.52	$ 0.73	$ 2.16	$ 2.03

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
OPERATING ACTIVITIES
Net income	$ 23,112	$ 22,257
Adjustments to reconcile net income to net cash provided by operating activities:
Amortization of investment premium and discount	3,193	3,299
Depreciation	4,083	3,474
Acquisition costs capitalized	(27,639)	(26,539)
Amortization of deferred acquisition costs	19,586	31,154
Realized investment gains	(4,364)	(2,829)
Changes in assets and liabilities:
Reinsurance recoverables	(6,073)	(1,064)
Future policy benefits	1,699	7,944
Policyholder account balances	(16,205)	(14,493)
Income taxes payable and deferred	4,126	545
Other, net	8,507	(3,522)
Net cash provided	10,025	20,226
Purchases:
Fixed maturity securities	(202,067)	(239,616)
Equity securities	(38)	(89)
Mortgage loans	(100,370)	(23,349)
Real estate	(1,845)	(5,182)
Policy loans	(6,867)	(8,181)
Other investments	(134)	0
Sales or maturities, calls, and principal paydowns:
Fixed maturity securities	193,174	151,877
Equity securities	33	15
Mortgage loans	72,007	80,268
Real estate	19,905	2,538
Policy loans	8,674	8,446
Other investments	387	5,000
Net sales of short-term investments	16,036	20,905
Acquisition of property and equipment	(426)	(1,388)
Net cash used	(1,531)	(8,756)
FINANCING ACTIVITIES
Proceeds from borrowings	1,000	0
Repayment of borrowings	(1,000)	0
Deposits on policyholder account balances	167,009	187,724
Withdrawals from policyholder account balances	(169,090)	(194,432)
Net transfers from separate accounts	7,345	5,157
Change in other deposits	3,475	2,814
Cash dividends to stockholders	(8,679)	(8,883)
Net change in treasury stock	(9,866)	(3,641)
Net cash used	(9,806)	(11,261)
Increase (decrease) in cash	(1,312)	209
Cash at beginning of year	11,011	8,197
Cash at end of period	9,699	8,406
Cash paid during the period for:
Income taxes	$ 6,000	$ 9,250

Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Investments:
Fixed maturity securities available for sale, at fair value	$ 2,697,443	$ 2,726,731
Equity securities available for sale, at fair value	24,758	24,881
Mortgage loans	568,952	541,180
Real estate	163,030	181,082
Policy loans	81,748	83,553
Short-term investments	23,071	39,107
Other investments	265	462
Total investments	3,559,267	3,596,996
Cash	9,699	11,011
Accrued investment income	35,775	33,078
Deferred acquisition costs	262,805	249,195
Reinsurance recoverables	200,498	194,425
Property and equipment	16,722	17,527
Other assets	53,670	63,134
Separate account assets	364,621	406,501
Total assets	4,503,057	4,571,867
LIABILITIES
Future policy benefits	930,478	930,761
Policyholder account balances	2,060,954	2,072,041
Policy and contract claims	46,405	37,452
Other policyholder funds	173,229	165,062
Other liabilities	197,530	217,291
Separate account liabilities	364,621	406,501
Total liabilities	3,773,217	3,829,108
STOCKHOLDERS' EQUITY
Common stock, par value $1.25 per share Authorized 36,000,000 shares, issued 18,496,680 shares	23,121	23,121
Additional paid in capital	41,025	41,007
Retained earnings	852,941	838,508
Accumulated other comprehensive income	5,554	23,040
Treasury stock, at cost (2015 - 7,887,781 shares; 2014 - 7,671,475 shares)	(192,801)	(182,917)
Total stockholders’ equity	729,840	742,759
Total liabilities and stockholders’ equity	$ 4,503,057	$ 4,571,867