Kansas City Life Insurance Co. reported a steep drop in second-quarter profits, as the company was hurt by increased policyholder benefits and lower income on investments.
The Kansas City-based company earned $5.2 million in the three months that ended June 30, down from earnings of $10.9 million in the same period last year. Second-quarter revenue amounted to $108.5 million, compared with $108.9 million in the second quarter of 2015.
The company said the profit decline “resulted from increased policyholder benefits and lower net investment income, both of which were impacted by the challenging interest rate environment.”
For the first six months, Kansas City Life earned $9.5 million, down from a profit of $17.7 million for the first six months of 2015.