UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
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QUARTERLY REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 [FEE REQUIRED] |
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For the Quarterly Period ended June 30, 2007 or |
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 [NO FEE REQUIRED] |
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For the Transition Period from ________ to ________ |
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Commission File Number 2-40764 |
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KANSAS CITY LIFE INSURANCE COMPANY |
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(Exact Name of Registrant as Specified in its Charter) |
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Missouri |
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44-0308260 |
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(State or Other Jurisdiction of |
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(I.R.S. Employer |
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Incorporation or Organization) |
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Identification Number) |
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3520 Broadway, Kansas City, Missouri |
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64111-2565 |
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(Address of Principal Executive Offices) |
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(Zip Code) |
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Registrant’s Telephone Number, including Area Code: 816-753-7000
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Not Applicable |
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(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):
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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.
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Class |
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Outstanding June 30, 2007 |
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Common Stock, $1.25 par value |
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11,849,547 shares |
KANSAS CITY
LIFE INSURANCE COMPANY
TABLE OF CONTENTS
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3 |
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3 |
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4 |
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5 |
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6 |
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Management’s Discussion and Analysis of Financial Condition and Results of Operations |
13 |
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26 |
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26 |
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27 |
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28 |
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30 |
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31 |
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-2-
Part I
Financial Information
Item 1. Financial Statements (Unaudited)
KANSAS CITY
LIFE INSURANCE COMPANY
CONSOLIDATED BALANCE SHEETS
(amounts in thousands, except share data)
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June
30 |
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December 31 |
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(Unaudited) |
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ASSETS |
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Investments: |
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Fixed maturity securities available for sale, at fair value |
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$ |
2,634,073 |
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$ |
2,719,439 |
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Equity securities available for sale, at fair value |
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51,076 |
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52,351 |
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Mortgage loans |
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462,414 |
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472,019 |
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Real estate |
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96,989 |
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109,525 |
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Policy loans |
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93,839 |
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96,218 |
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Short-term investments |
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20,062 |
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44,219 |
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Total investments |
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3,358,453 |
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3,493,771 |
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Cash |
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14,559 |
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3,908 |
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Accrued investment income |
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38,092 |
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38,661 |
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Deferred acquisition costs |
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222,249 |
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220,595 |
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Value of business acquired |
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77,986 |
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82,769 |
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Reinsurance receivables |
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160,426 |
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159,513 |
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Property and equipment |
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28,404 |
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29,364 |
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Other assets |
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31,700 |
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31,092 |
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Separate account assets |
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422,921 |
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400,749 |
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Total assets |
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$ |
4,354,790 |
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$ |
4,460,422 |
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LIABILITIES |
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Future policy benefits |
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$ |
850,386 |
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$ |
854,447 |
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Policyholder account balances |
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2,132,214 |
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2,191,105 |
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Policy and contract claims |
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35,776 |
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32,188 |
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Other policyholder funds |
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104,597 |
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87,094 |
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Notes payable |
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12,700 |
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14,700 |
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Income taxes |
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24,769 |
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35,319 |
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Other liabilities |
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118,516 |
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160,516 |
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Separate account liabilities |
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422,921 |
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400,749 |
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Total liabilities |
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3,701,879 |
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3,776,118 |
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STOCKHOLDERS’ EQUITY |
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Common stock, par value $1.25 per share Authorized 36,000,000 shares, issued 18,496,680 shares |
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23,121 |
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23,121 |
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Additional paid in capital |
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28,060 |
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25,852 |
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Retained earnings |
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770,979 |
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780,892 |
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Accumulated other comprehensive loss |
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(46,261 |
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(25,118 |
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Less treasury stock, at cost (2007 - 6,647,133 shares; 2006 - 6,641,183 shares) |
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(122,988 |
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(120,443 |
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Total stockholders’ equity |
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652,911 |
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684,304 |
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Total liabilities and stockholders’ equity |
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$ |
4,354,790 |
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$ |
4,460,422 |
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See accompanying Notes to Consolidated Financial Statements (Unaudited).
-3-
KANSAS CITY
LIFE INSURANCE COMPANY
CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
(amounts in thousands, except share data)
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Quarter ended |
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Six
Months ended |
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2007 |
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2006 |
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2007 |
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2006 |
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REVENUES |
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Insurance revenues: |
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Premiums |
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$ |
45,242 |
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$ |
44,374 |
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$ |
87,890 |
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$ |
87,994 |
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Contract charges |
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26,477 |
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28,520 |
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55,180 |
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57,853 |
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Reinsurance ceded |
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(14,300 |
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(14,080 |
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(27,244 |
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(27,225 |
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Total insurance revenues |
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57,419 |
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58,814 |
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115,826 |
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118,622 |
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Investment revenues: |
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Net investment income |
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48,671 |
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48,823 |
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95,755 |
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97,736 |
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Realized investment gains |
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38 |
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