Stockholders' equity $ 54.04 $ 49.81 $ 47.04 $ 44.28 $ 40.86
The following table provides asset class detail of the investment portfolio. Investment securities represented 79% of the entire investment portfolio, up from 72% in 2002. The increase in the proportion of investment securities was primarily due to the GuideOne acquisition and the reinvestment of short-term investments.
We have audited the accompanying consolidated balance sheets of Kansas City Life Insurance Company and subsidiaries (the Company) as of December 31, 2003 and 2002, and the related consolidated statements of income, stockholders’ equity, and cash flows for each of the years in the three-year period ended December 31, 2003. In connection with our audits of the consolidated financial statements, we also have audited financial statement schedules I-IV. These consolidated financial statements and financial statement schedules are the responsibility of the Company’s management. Our responsibility is to express an opinion on these consolidated financial statements and financial statement schedules based on our audits.
The preparation of the consolidated financial statements requires management of the Company to make estimates and assumptions relating to the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenue and expenses during the period. These estimates are inherently subject to change and actual results could differ from these estimates. Included among the material (or potentially material) reported amounts and disclosures that require extensive use of estimates are deferred acquisition costs, value of business acquired, future policy benefits, policy and contract claim liabilities and the fair value of certain invested assets.
The following tables provide investment revenues by major category at December 31.
Investment real estate, other than foreclosed properties, is depreciated on a straight-line basis. Penntower office building is depreciated over 60 years and all other properties from 10 to 39 years.
The liability for unpaid accident and health claims is included with “policy and contract claims” on the Consolidated Balance Sheets. Claim adjustment expenditures are expensed as incurred and were not material in any year presented. Activity in the liability follows.
The Company is required to deposit a defined amount of assets with state regulatory authorities. Such assets had an aggregate carrying value of $20,000 (2002 -- $19,000; 2001 -- $18,000).
Following is the accumulated balances related to each component of accumulated other comprehensive income (loss).
2003 2002 ----------------------------- ----------------------------- Carrying Fair Carrying Fair Amount Value Amount Value ------ ----- ------ ----- Investments: Securities available for sale $ 2,878,293 $ 2,878,293 $ 2,199,026 $ 2,199,026 Mortgage loans 456,656 478,283 463,150 499,935 Liabilities: Individual and group annuities $ 904,324 $ 875,656 $ 766,177 $ 748,835 Bank deposits 55,231 55,231 56,052 56,367 Supplementary contracts without life contingencies 61,289 61,289 37,614 37,614