Author Topic: KCLI - Kansas City Life Insurance Co  (Read 13651 times)

Spekulatius

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Re: KCLI - Kansas City Life Insurance Co
« Reply #30 on: August 21, 2018, 04:15:52 AM »
The money in a box analogy is pretty good in this case. What would you pay for Per $ for money in a bank account controlled by someone else (for  decades) yielding let say 3%? Certainly not a 100c on the $. 50c maybe? Even 70c on the $ would be too high.
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bskptkl

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Re: KCLI - Kansas City Life Insurance Co
« Reply #31 on: August 21, 2018, 07:22:11 AM »
I compare KCLI with NWLI and ELF.TO.
KCLI was trading more like 50% of TBV while those other 2 trade closer to 70% of TBV so I have been picking away at KCLI this year after selling NWLI last year. Still slightly below water at $42 though. Should have kept NWLI. C'est la vie.

Big losses in their securities portfolio though. Don't know why it popped up about 10% recently. A 2Q that wasn't as bad as 1Q maybe?

Maybe one day family takes it completely private. They did pay $52.50 not too long ago so someone thought that was a fair price.

Spekulatius

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Re: KCLI - Kansas City Life Insurance Co
« Reply #32 on: August 21, 2018, 10:28:45 AM »
I compare KCLI with NWLI and ELF.TO.
KCLI was trading more like 50% of TBV while those other 2 trade closer to 70% of TBV so I have been picking away at KCLI this year after selling NWLI last year. Still slightly below water at $42 though. Should have kept NWLI. C'est la vie.

Big losses in their securities portfolio though. Don't know why it popped up about 10% recently. A 2Q that wasn't as bad as 1Q maybe?

Maybe one day family takes it completely private. They did pay $52.50 not too long ago so someone thought that was a fair price.

I think NWLI is a better company than KCLI and it deserves a higher  multiple. I owned NWLI st around 35% of book and sold for a little more than 50% book - too early obviously.
Life is too short for cheap beer and wine.

Philbert77

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Re: KCLI - Kansas City Life Insurance Co
« Reply #33 on: October 20, 2018, 09:24:18 PM »

I think NWLI is a better company than KCLI and it deserves a higher  multiple. I owned NWLI st around 35% of book and sold for a little more than 50% book - too early obviously.

When did you own NWLI at 35% of book? I sold them this summer at $319 a share. I notice that they have drifted down towards $280 recently and on a book value of $507 that looks pretty good to me. Just wish the family would actually do something to close the discount. I held the stock for 6 years, it was good to me but man closing that discount somehow would be nice...

Spekulatius

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Re: KCLI - Kansas City Life Insurance Co
« Reply #34 on: October 21, 2018, 05:29:48 AM »

I think NWLI is a better company than KCLI and it deserves a higher  multiple. I owned NWLI st around 35% of book and sold for a little more than 50% book - too early obviously.

When did you own NWLI at 35% of book? I sold them this summer at $319 a share. I notice that they have drifted down towards $280 recently and on a book value of $507 that looks pretty good to me. Just wish the family would actually do something to close the discount. I held the stock for 6 years, it was good to me but man closing that discount somehow would be nice...

I believe it was in the 2011/2012 timeframe. At that point, NWLI was trading quite a bit below 50% of book. I bought in the $130-135 range.
« Last Edit: October 21, 2018, 05:31:34 AM by Spekulatius »
Life is too short for cheap beer and wine.

bskptkl

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Re: KCLI - Kansas City Life Insurance Co
« Reply #35 on: April 12, 2019, 09:27:30 AM »
I visited KCLI this week. What an impressive headquarters, built around 100 years ago for 1 mm in construction costs. It looks like the federal reserve building.

My impression is that KCLI is conservatively managed company that's been around forever and plans to be around forever. They're comfortable in their niche market, not trying to hit home runs, knocking out singles. The low interest environment hurts of course, but they feel we are late in the cycle and it's not time to take more risk. They point to their real estate portfolio (most certainly understated on the balance sheet) and commercial lending arm as areas of expertise (been doing it forever) and how they take risk in a smart way, as opposed to reaching for yield in their bond portfolio. They were very aggressive lenders in 2008, contrary to everyone else. They want to be just as opportunistic when the market eventually corrects.

But they are not looking to aggressively buyback stock and hopes of the Bixby family taking it private seem misplaced to me. I get the impression we could wallow at these prices for a while until earnings get better. Personally, I will continue to buy dips and maybe trade around my current position just to amuse myself, but it will remain a large holding of mine - even though I am underwater.

Spekulatius

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Re: KCLI - Kansas City Life Insurance Co
« Reply #36 on: April 12, 2019, 10:01:56 AM »
Yes, KCLI is cheap based on price/ book. I do find it strange that they buy up another insurer ( Grange) for multiples of their book value, while their own stock trades at 1/2 book ( roughly). Also, the CEO ( Buxby) is paid very well - ~$3.6M in 2014. After they went semi private, we don‘t know, but I suspect hiding the extremely generous salary is one reason why they went down that route.
Life is too short for cheap beer and wine.

Foreign Tuffett

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Re: KCLI - Kansas City Life Insurance Co
« Reply #37 on: September 10, 2019, 02:55:12 PM »

Jurgis

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Re: KCLI - Kansas City Life Insurance Co
« Reply #38 on: September 10, 2019, 03:09:24 PM »
"Before you can be rich, you must be poor." - Nef Anyo
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