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 September 30, 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)

 

Registrants 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 issuers classes of common stock, as of the latest practicable date.

 

 

 

Class

 

Outstanding September 30, 2007


 


Common Stock, $1.25 par value

 

11,831,804 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.

Managements Discussion and Analysis of Financial Condition and Results of Operations

13

 

 

 

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

26

 

 

 

Item 4.

Controls and Procedures

26

 

 

 

Part II.

Other Information

27

 

 

 

Item 1.

Legal Proceedings

27

 

 

 

Item 5.

Other Information

28

 

 

 

Item 6.

Exhibits

30

 

 

 

Signatures

31

 

 

 

 

 

 

-2-



Part I Financial Information
Item 1. Financial Statements (Unaudited)

KANSAS CITY LIFE INSURANCE COMPANY
CONSOLIDATED BALANCE SHEETS

(amounts in thousands, except share data)

 

 

 

 

 

 

 

 

 

 

September 30
2007

 

December 31
2006

 

 

 

(Unaudited)

 

 

 

 

ASSETS

 

 

 

 

 

 

 

Investments:

 

 

 

 

 

 

 

Fixed maturity securities available for sale, at fair value

 

$

2,623,597

 

$

2,719,439

 

Equity securities available for sale, at fair value

 

 

49,256

 

 

52,351

 

Mortgage loans

 

 

458,466

 

 

472,019

 

Real estate

 

 

94,031

 

 

109,525

 

Policy loans

 

 

93,180

 

 

96,218

 

Short-term investments

 

 

63,031

 

 

44,219

 

 

Total investments

 

 

3,381,561

 

 

3,493,771

 

 

 

 

 

 

 

 

 

Cash

 

 

11,048

 

 

3,908

 

Accrued investment income

 

 

41,672

 

 

38,661

 

Deferred acquisition costs

 

 

220,177

 

 

220,595

 

Value of business acquired

 

 

76,146

 

 

82,769

 

Reinsurance receivables

 

 

159,189

 

 

158,231

 

Property and equipment

 

 

27,973

 

 

29,364

 

Other assets

 

 

30,458

 

 

29,747

 

Separate account assets

 

 

428,947

 

 

400,749

 

 

Total assets

 

$

4,377,171

 

$

4,457,795

 

 

 

 

 

LIABILITIES

 

 

 

 

 

 

 

Future policy benefits

 

$

849,905

 

$

853,102

 

Policyholder account balances

 

 

2,110,532

 

 

2,191,105

 

Policy and contract claims

 

 

31,206

 

 

32,188

 

Other policyholder funds

 

 

106,347

 

 

87,094

 

Notes payable

 

 

8,700

 

 

14,700

 

Income taxes

 

 

27,764

 

 

35,319

 

Other liabilities

 

 

145,277

 

 

159,234

 

Separate account liabilities

 

 

428,947

 

 

400,749

 

 

Total liabilities

 

 

3,708,678

 

 

3,773,491

 

 

 

 

 

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

 

 

29,013

 

 

25,852

 

Retained earnings

 

 

776,909

 

 

780,892

 

Accumulated other comprehensive loss

 

 

(35,712

)

 

(25,118

)

Treasury stock, at cost (2007 - 6,664,876 shares;
2006 - 6,641,183 shares)

 

 

(124,838

)

 

(120,443

)

 

Total stockholders' equity

 

 

668,493

 

 

684,304

 

 

Total liabilities and stockholders equity'

 

$

4,377,171

 

$

4,457,795

 

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)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Quarter ended
September 30

 

Nine Months ended
September 30

 

 

 

2007

 

2006

 

2007

 

2006

 

 

 

 

 

 

 

REVENUES

 

 

 

 

 

 

 

 

 

 

 

 

 

Insurance revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

Premiums

 

$

43,041

 

$

43,182

 

$

131,033

 

$

131,296

 

Contract charges

 

 

28,058

 

 

28,364

 

 

83,238

 

 

86,217

 

Reinsurance ceded

 

 

(13,193

)

 

(13,404

)

 

(40,532

)

 

(40,739

)

 

 

 

 

 

 

Total insurance revenues

 

 

57,906

 

 

58,142

 

 

173,739

 

 

176,774

 

Investment revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

 

46,869

 

 

48,995

 

 

142,624

 

 

146,731

 

Realized investment gains

 

 

1,339

 

 

757

 

 

6,501

 

 

2,397

 

Other revenues

 

 

2,674

 

 

3,330

 

 

8,848

 

 

8,835