United States

Securities and Exchange Commission

Washington, D.C. 20549

 

Form 10-Q

 

Quarterly Report Under Section 13 or 15 (d) of the

Securities Exchange Act of 1934

 

For the Quarter ended June 30, 2005

 

Commission File No. 2-40764

 

Kansas City Life Insurance Company

3520 Broadway

Kansas City, Missouri 64111-2565

 

Phone: (816) 753-7000

 

IRS Number: 44-0308260

 

Incorporated in the State of Missouri

 

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, and (2) has been subject to such filing requirements for the past 90 days.

 

Yes

X

No______

 

Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act).

 

Yes

X

No______

 

Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the most recent date available.

 

 

Class

Outstanding July 18, 2005

Common Stock, $1.25 par value

11,920,819 shares

 

 

 

 

 

 

KANSAS CITY LIFE INSURANCE COMPANY

TABLE OF CONTENTS

 

 

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

3

 

 

Item 1. Financial Statements.........................................................................................................

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.......................

14

 

 

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

29

 

 

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

30

 

 

 

 

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

31

 

 

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

31

 

 

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

32

 

 

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

34

 

 

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

35

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

-2-

 

Part I Financial Information

Item 1. Financial Statements

 

KANSAS CITY LIFE INSURANCE COMPANY

CONSOLIDATED BALANCE SHEETS

(amounts in thousands, except share data)

 

 

 

 

 

 

June 30

 

December 31

 

 

 

 

 

2005

 

2004

ASSETS

 

 

(Unaudited)

 

 

 

Investments:

 

 

 

 

 

 

 

Fixed maturity securities available for sale, at fair value

$

2,976,315

 

$

2,962,114

 

Equity securities available for sale, at fair value

 

59,319

 

 

63,099

 

Mortgage loans

 

 

461,821

 

 

430,632

 

Real estate

 

 

92,266

 

 

91,519

 

Policy loans

 

 

105,153

 

 

108,546

 

Short-term investments

 

18,740

 

 

67,980

 

Other investments

 

1,669

 

 

2,081

 

 

 

Total investments

 

3,715,283

 

 

3,725,971

 

 

 

 

 

 

 

 

 

 

Cash

 

 

 

 

13,037

 

 

4,147

Accrued investment income

 

40,571

 

 

39,928

Deferred acquisition costs

 

226,299

 

 

229,712

Value of business acquired

 

91,975

 

 

96,853

Reinsurance receivables

 

161,275

 

 

156,839

Property and equipment

 

30,724

 

 

31,595

Other assets

 

 

24,620

 

 

27,118

Separate account assets

 

353,195

 

 

353,983

 

 

 

Total assets

$

4,656,979

 

$

4,666,146

 

 

 

 

 

 

 

 

 

 

LIABILITIES

 

 

 

 

 

 

Future policy benefits

$

856,967

 

$

859,890

Policyholder account balances

 

2,296,112

 

 

2,299,647

Policy and contract claims

 

35,097

 

 

34,200

Other policyholder funds

 

95,709

 

 

96,853

Notes payable

 

 

67,897

 

 

92,220

Income taxes

 

 

57,461

 

 

53,703

Other liabilities

 

 

181,949

 

 

182,754

Separate account liabilities

 

353,195

 

 

353,983

 

 

 

Total liabilities

 

3,944,387

 

 

3,973,250

 

 

 

 

 

 

 

 

 

 

STOCKHOLDERS' EQUITY

 

 

 

 

 

Common stock, par value $1.25 per share

 

 

 

 

 

 

Authorized 36,000,000 shares,

 

 

 

 

 

 

 

 

issued 18,496,680 shares