AUSTIN, Texas, Nov. 3, 2017 /PRNewswire/ -- Ross R. Moody, Chairman of the Board, President,
and Chief Executive Officer of National Western Life Group, Inc.
(Nasdaq: NWLI), announced today third quarter 2017 consolidated net
earnings of $21.8 million, or
$6.17 per diluted Class A common
share, compared with consolidated net earnings of $33.7 million, or $9.54 per diluted Class A common share, for 2016.
For the nine months ended September 30,
2017, the Company reported consolidated net earnings of
$70.8 million, or $20.03 per diluted Class A common share, compared
with $77.3 million, or $21.85 per diluted Class A common share, a year
ago. The Company's book value per share increased to $495.76 as of September
30, 2017 from $489.63 as of
June 30, 2017.
The Company reported earnings from operations, excluding net
realized gains and losses on investments, of $20.5 million for the quarter ended September 30, 2017, or $5.79 per diluted Class A common share, compared
to $30.2 million, or $8.54 per diluted Class A common share in the
same period for 2016. Mr. Moody commented on the earnings results
saying, "Our earnings in the third quarter last year benefited from
favorable experience in the performance of our domestic life
insurance business which allowed us to decrease amortization of
acquisition expenses by $8.2 million.
Experience performance of our lines of business in the third
quarter this year resulted in an addition to benefits and expenses
of $0.4 million." Mr. Moody noted
that third quarter 2017 results also witnessed lower realized
investment gains due to a reduced level of bond calls on its
investment portfolio. "We prefer that debt instruments with higher
coupons remain in the portfolio to generate interest earnings to
support our crediting rate obligations," he added.
The Company's total revenues for the 2017 third quarter reached
$204.0 million, surpassing the 2016
third quarter amount by 12%, as the Company's investments in index
options continued their favorable market performance. Mr. Moody
indicated, "Our portfolio of equity-index products, both life
insurance and annuities, has continued to be well-received by the
marketplace. Index option returns passed along to our policyholders
in the form of interest credits have increased substantially this
year." For the nine months ended September
30, 2017, total revenues increased to $626.6 million from $497.9
million in the prior year period. Mr. Moody observed, "We
are pursuing additional opportunities and distribution channels to
build upon the success of our product offerings and believe the
diversity that these initiatives present will greatly benefit
National Western."
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 277 employees and approximately
30,100 contracted independent agents, brokers, and consultants. At
September 30, 2017, the Company
maintained consolidated total assets of $12.1 billion, stockholders' equity of
$1.8 billion, and life insurance in
force of $19.9 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
|
|
Nine Months
Ended
|
|
|
September
30,
|
|
September
30,
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
Revenues:
|
|
|
|
|
|
|
|
|
Revenues, excluding
investment and index option gains (losses)
|
$
|
156,785
|
|
|
157,307
|
|
|
477,175
|
|
|
478,987
|
|
Realized and
unrealized gains (losses) on index options
|
|
45,131
|
|
|
19,114
|
|
|
138,552
|
|
|
8,307
|
|
Realized gains on
investments
|
|
2,074
|
|
|
5,426
|
|
|
10,906
|
|
|
10,589
|
|
Total
revenues
|
|
203,990
|
|
|
181,847
|
|
|
626,633
|
|
|
497,883
|
|
|
|
|
|
|
|
|
|
|
Earnings:
|
|
|
|
|
|
|
|
|
Earnings from
operations
|
$
|
20,465
|
|
|
30,209
|
|
|
63,745
|
|
|
70,397
|
|
Net realized gains on
investments
|
|
1,348
|
|
|
3,527
|
|
|
7,089
|
|
|
6,883
|
|
Net
earnings
|
|
21,813
|
|
|
33,736
|
|
|
70,834
|
|
|
77,280
|
|
|
|
|
|
|
|
|
|
|
Net earnings
attributable to Class A shares
|
|
21,196
|
|
|
32,782
|
|
|
68,831
|
|
|
75,095
|
|
|
|
|
|
|
|
|
|
|
Basic Earnings
Per Class A Share:
|
|
|
|
|
|
|
|
|
Earnings from
operations
|
$
|
5.79
|
|
|
8.54
|
|
|
18.03
|
|
|
19.91
|
|
Net realized gains on
investments
|
|
0.38
|
|
|
1.00
|
|
|
2.00
|
|
|
1.94
|
|
Net
earnings
|
|
6.17
|
|
|
9.54
|
|
|
20.03
|
|
|
21.85
|
|
|
|
|
|
|
|
|
|
|
Basic Weighted
Average Class A Shares
|
|
3,436
|
|
|
3,436
|
|
|
3,436
|
|
|
3,436
|
|
|
|
|
|
|
|
|
|
|
Diluted
Earnings Per Class A Share:
|
|
|
|
|
|
|
|
|
Earnings from
operations
|
$
|
5.79
|
|
|
8.54
|
|
|
18.03
|
|
|
19.91
|
|
Net realized gains on
investments
|
|
0.38
|
|
|
1.00
|
|
|
2.00
|
|
|
1.94
|
|
Net
earnings
|
|
6.17
|
|
|
9.54
|
|
|
20.03
|
|
|
21.85
|
|
|
|
|
|
|
|
|
|
|
Diluted Weighted
Average Class A Shares
|
|
3,436
|
|
|
3,436
|
|
|
3,436
|
|
|
3,436
|
|
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.