AUSTIN, Texas, May 9, 2017 /PRNewswire/ -- Ross R. Moody,
Chairman of the Board, President, and Chief Executive Officer of
National Western Life Group, Inc. (Nasdaq: NWLI), announced today
first quarter 2017 consolidated net earnings of $23.5 million, or $6.65 per diluted Class A common share, compared
with consolidated net earnings of $17.3
million, or $4.88 per diluted
Class A common share, for 2016. The Company's book value per share
increased to $481.06 as of
March 31, 2017 from $473.53 as of December 31,
2016.
The Company reported earnings from operations, excluding net
realized gains and losses on investments, of $21.9 million for the quarter ended March 31, 2017, or $6.18 per diluted Class A common share, compared
to $15.7 million, or $4.44 per diluted Class A common share in the
same period for 2016. Mr. Moody commented on the earnings results
saying, "Our business activity has shifted significantly to
fixed-indexed annuity and universal life insurance products during
this low interest rate environment. When equity markets perform
positively year over year, as they did in the first quarter this
year, our investment spread margins benefit."
Revenues increased to $224.4
million for the quarter ended March
31, 2017 from $148.9 million
during the same period in 2016 primarily due to higher market
valuations of index options the Company purchases to support its
fixed-index policy obligations. Mr. Moody indicated, "We have been
focusing on growing the domestic life insurance segment of our
business and were pleased with our first quarter sales increasing
7% for this line of business. Domestic life sales consist almost
entirely of equity-indexed universal life insurance products which
involve the use of options and these sales incrementally add to our
portfolio of index options." Mr. Moody added, "Annuity sales held
up reasonably well in the first quarter despite the uncertainty
caused by the Department of Labor fiduciary rule and its delayed
implementation date. While we have made appropriate preparations,
the annuity marketplace will be clarified with the ultimate form
and timing of the rule."
National Western Life Group, Inc. is the parent organization of
National Western Life Insurance Company (NWLIC). Founded in 1956,
NWLIC is a stock life insurance company offering a broad portfolio
of individual universal life, whole life and term insurance plans,
as well as annuity products, which meet the financial needs of its
customers in 49 states as well as residents of various
international countries. NWLIC has 270 employees and approximately
28,300 contracted independent agents, brokers, and consultants. At
March 31, 2017, the Company
maintained consolidated total assets of $12.0 billion, stockholders' equity of
$1.7 billion, and life insurance in
force of $20.5 billion.
Caution Regarding Forward-Looking Statements:
This press release contains statements which are or may be
viewed as forward-looking within the meaning of The Private
Securities Litigation Reform Act of 2005. Forward-looking
statements relate to future operations, strategies, financial
results or other developments, and are subject to assumptions,
risks, and uncertainties. Factors that may cause actual results to
differ materially from those contemplated in these forward-looking
statements can be found in the Company's Form 10-K filed with the
Securities and Exchange Commission. Forward-looking statements
speak only as of the date the statement was made and the Company
undertakes no obligation to update such forward-looking statements.
There can be no assurance that other factors not currently
anticipated by the Company will not materially and adversely affect
our results of operations. Investors are cautioned not to place
undue reliance on any forward-looking statements made by us or on
our behalf.
|
Summary of
Consolidated Operating Results (Unaudited)
|
|
(In thousands
except per share data)
|
|
|
|
Three Months
Ended
|
|
|
|
March 31,
|
|
|
|
2017
|
|
2016
|
|
|
Revenues:
|
|
|
|
|
|
|
Revenues, excluding
investment and index option gains (losses)
|
$
|
160,627
|
|
|
159,462
|
|
|
|
Realized and
unrealized gains (losses) on index options
|
|
61,206
|
|
|
(12,901)
|
|
|
|
Realized gains on
investments
|
|
2,584
|
|
|
2,381
|
|
|
|
Total
revenues
|
|
224,417
|
|
|
148,942
|
|
|
|
|
|
|
|
|
|
Earnings:
|
|
|
|
|
|
|
Earnings from
operations
|
$
|
21,858
|
|
|
15,712
|
|
|
|
Net realized gains on
investments
|
|
1,680
|
|
|
1,547
|
|
|
|
Net
earnings
|
|
23,538
|
|
|
17,259
|
|
|
|
|
|
|
|
|
|
Net earnings
attributable to Class A shares
|
|
22,872
|
|
|
16,771
|
|
|
|
|
|
|
|
|
|
Basic Earnings
Per Class A Share:
|
|
|
|
|
|
|
Earnings from
operations
|
$
|
6.18
|
|
|
4.44
|
|
|
|
Net realized gains on
investments
|
|
0.48
|
|
|
0.44
|
|
|
|
Net
earnings
|
|
6.66
|
|
|
4.88
|
|
|
|
|
|
|
|
|
|
Basic Weighted
Average Class A Shares
|
|
3,436
|
|
|
3,436
|
|
|
|
|
|
|
|
|
|
Diluted
Earnings Per Class A Share:
|
|
|
|
|
|
|
Earnings from
operations
|
$
|
6.18
|
|
|
4.44
|
|
|
|
Net realized gains on
investments
|
|
0.47
|
|
|
0.44
|
|
|
|
Net
earnings
|
|
6.65
|
|
|
4.88
|
|
|
|
|
|
|
|
|
|
Diluted Weighted
Average Class A Shares
|
|
3,440
|
|
|
3,437
|
|
|
Investor Relations Contact:
Brian M. Pribyl - Senior Vice President, Chief
Financial Officer and Treasurer
(512) 836-1010
bpribyl@nationalwesternlife.com
www.nwlgi.com
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/national-western-life-group-inc-announces-2017-first-quarter-earnings-300454165.html
SOURCE National Western Life Group, Inc.