AUSTIN, Texas, May 9, 2018 /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 2018 consolidated net
earnings of $26.9 million, or
$7.60 per diluted Class A common
share, compared with consolidated net earnings of $23.5 million, or $6.65 per diluted Class A common share, for the
first quarter of 2017. The Company's book value per share as of
March 31, 2018 was $502.79.
The Company reported earnings from operations, excluding net
realized gains and losses on investments, of $26.4 million for the quarter ended March 31, 2018, or $7.46 per diluted Class A common share, compared
to $21.9 million, or $6.18 per diluted Class A common share in the
same period for 2017. Mr. Moody commented on the results saying,
"Our operating earnings for the quarter benefited from the lower
corporate tax rate provided by the tax act enacted last December.
On a pretax basis, our operating earnings also registered an
increase over last year's quarter reflecting our ongoing efforts
toward expense containment and management of our spread margins on
our interest-sensitive product portfolio."
Insurance revenues, excluding gains and losses on investments
and index options, of $152.8 million
during the quarter ended March 31,
2018 declined 5% from the first quarter of 2017 amount
reflecting lower surrender charge revenue in the current quarter
and non-recurring investment income received in the prior year
first quarter. Mr. Moody indicated, "We recognize revenue in the
current reporting period from surrender charges assessed against
policyholders who withdraw funds; however, it is far better from a
long-term profitability standpoint to have those policies and
values remain on our books. The lapse rates on our life insurance
business showed a noticeable improvement in the first quarter of
this year. While this is preferable, it does result in lower
revenues being reported currently." Mr. Moody added that current
life insurance sales will manifest in future period revenues. "We
had a very strong start to our life sales in the first quarter.
Domestic life insurance sales, which have been a focal point of the
company, increased 38% in the first quarter over last year," Mr.
Moody noted.
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. NWLIC has 294 employees and
approximately 29,400 contracted independent agents, brokers, and
consultants. At March 31, 2018, the
Company maintained consolidated total assets of $12.1 billion, stockholders' equity of
$1.8 billion, and life insurance in
force of $19.5 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,
|
|
|
2018
|
|
2017
|
Revenues:
|
|
|
|
|
Revenues, excluding
investment and index option gains (losses)
|
$
|
152,801
|
|
|
160,627
|
|
Realized and
unrealized gains (losses) on index options
|
|
(44,394)
|
|
|
61,206
|
|
Realized gains on
investments
|
|
611
|
|
|
2,584
|
|
Total
revenues
|
|
109,018
|
|
|
224,417
|
|
|
|
|
|
|
Earnings:
|
|
|
|
|
Earnings from
operations
|
$
|
26,392
|
|
|
21,858
|
|
Net realized gains on
investments
|
|
483
|
|
|
1,680
|
|
Net
earnings
|
|
26,875
|
|
|
23,538
|
|
|
|
|
|
|
Net earnings
attributable to Class A shares
|
|
26,115
|
|
|
22,872
|
|
|
|
|
|
|
Basic Earnings
Per Class A Share:
|
|
|
|
|
Earnings from
operations
|
$
|
7.46
|
|
|
6.18
|
|
Net realized gains on
investments
|
|
0.14
|
|
|
0.48
|
|
Net
earnings
|
|
7.60
|
|
|
6.66
|
|
|
|
|
|
|
Basic Weighted
Average Class A Shares
|
|
3,436
|
|
|
3,436
|
|
|
|
|
|
|
Diluted
Earnings Per Class A Share:
|
|
|
|
|
Earnings from
operations
|
$
|
7.46
|
|
|
6.18
|
|
Net realized gains on
investments
|
|
0.14
|
|
|
0.47
|
|
Net
earnings
|
|
7.60
|
|
|
6.65
|
|
|
|
|
|
|
Diluted Weighted
Average Class A Shares
|
|
3,436
|
|
|
3,440
|
|
Investor Relations Contact:
Brian M. Pribyl - Senior Vice President, Chief
Financial Officer and Treasurer
(512) 836-1010
bpribyl@nationalwesternlife.com
www.nwlgi.com
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SOURCE National Western Life Group, Inc.