UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 10-Q

 

x

QUARTERLY REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 [FEE REQUIRED]

 

For the Quarterly Period ended March 31, 2007 or

o

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 [NO FEE REQUIRED]

 

For the Transition Period from            

to            

Commission File Number 2-40764

 

KANSAS CITY LIFE INSURANCE COMPANY

(Exact Name of Registrant as Specified in its Charter)

 

 

Missouri

44-0308260

 

(State or Other Jurisdiction of

(I.R.S. Employer

 

Incorporation or Organization)

Identification Number)

 

 

3520 Broadway, Kansas City, Missouri

64111-2565  

 

(Address of Principal Executive Offices)

(Zip Code)

 

Registrant's Telephone Number, including Area Code: 816-753-7000

 

Not Applicable

(Former name or former address, if changed since last report)

 

Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

 

Yes x

No

o

 

Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer, See definition of “accelerated filer and large accelerated filer” in Rule 12b-2 of the Exchange Act. (Check one):

 

Large accelerated filer

o

Accelerated filer x

Non-accelerated filer

o

 

Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

 

Yes

o

No x

 

Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date.

 

 

Class

Outstanding March 31, 2007

Common Stock, $1.25 par value

11,860,420 shares

 

 

KANSAS CITY LIFE INSURANCE COMPANY

TABLE OF CONTENTS

 

Part I. Financial Information.............................................................................................................

3

 

 

 

Item 1. Financial Statements (Unaudited)............................................................................................

3

 

 

 

 

Consolidated Balance Sheets.......................................................................................................

3

 

 

 

 

Consolidated Statements of Income...............................................................................................

4

 

 

 

 

Consolidated Statements of Cash Flows........................................................................................

5

 

 

 

 

Notes to Consolidated Financial Statements...................................................................................

6

 

 

 

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.................

12

 

 

 

Item 3. Quantitative and Qualitative Disclosures About Market Risk.........................................................

22

 

 

 

Item 4. Controls and Procedures.......................................................................................................

22

 

 

 

 

 

 

Part II. Other Information.................................................................................................................

23

 

 

 

Item 1. Legal Proceedings.................................................................................................................

23

 

 

 

Item 4. Submission of Matters to a Vote of Security Holders...................................................................

23

 

 

 

Item 5. Other Information................................................................................................................

24

 

 

 

Item 6. Exhibits...............................................................................................................................

26

 

 

 

Signatures.....................................................................................................................................

27

 

-2-

Part I Financial Information

Item 1. Financial Statements (Unaudited)

 

KANSAS CITY LIFE INSURANCE COMPANY

CONSOLIDATED BALANCE SHEETS

(amounts in thousands, except share data)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

March 31

 

December 31

 

 

 

 

 

2007

 

2006

ASSETS

 

 

(Unaudited)

 

 

 

Investments:

 

 

 

 

 

 

 

Fixed maturity securities available for sale, at fair value

$

2,685,457

 

$

2,719,439

 

Equity securities available for sale, at fair value

 

53,419

 

 

52,351

 

Mortgage loans

 

 

456,346

 

 

472,019

 

Real estate

 

 

100,504

 

 

109,525

 

Policy loans

 

 

94,969

 

 

96,218

 

Short-term and other investments

 

42,664

 

 

41,037

 

Other investments

 

-

 

 

3,182

 

 

 

Total investments

 

3,433,359

 

 

3,493,771

 

 

 

 

 

 

 

 

 

 

Cash

 

 

 

 

13,874

 

 

3,908

Accrued investment income

 

41,665

 

 

38,661

Deferred acquisition costs

 

217,123

 

 

220,595

Value of business acquired

 

80,742

 

 

82,769

Reinsurance receivables

 

157,657

 

 

159,513

Property and equipment

 

28,906

 

 

29,364

Other assets

 

 

30,853

 

 

31,092

Separate account assets

 

404,210

 

 

400,749

 

 

 

Total assets

$

4,408,389

 

$

4,460,422

 

 

 

 

 

 

 

 

 

 

LIABILITIES

 

 

 

 

 

 

Future policy benefits

$

852,856

 

$

854,447

Policyholder account balances

 

2,161,459

 

 

2,191,105

Policy and contract claims

 

30,848

 

 

32,188

Other policyholder funds

 

101,941

 

 

87,094

Notes payable

 

 

14,700

 

 

14,700

Income taxes

 

 

40,336

 

 

35,319

Other liabilities

 

 

128,390

 

 

160,516

Separate account liabilities

 

404,210

 

 

400,749

 

 

 

Total liabilities

 

3,734,740

 

 

3,776,118

 

 

 

 

 

 

 

 

 

 

STOCKHOLDERS' EQUITY

 

 

 

 

 

Common stock, par value $1.25 per share

 

 

 

 

 

 

Authorized 36,000,000 shares,