AUSTIN, Texas, Nov. 6, 2020 /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 2020 consolidated net
earnings of $10.8 million, or
$3.06 per diluted Class A common
share, compared with consolidated net earnings of $20.0 million, or $5.65 per diluted Class A common share, for the
third quarter of 2019. For the nine months ended September 30, 2020, the Company reported
consolidated net earnings of $57.2
million, or $16.17 per diluted
Class A common share, compared with $93.9
million, or $26.55 per diluted
Class A common share, a year ago. The Company's book value per
share as of September 30, 2020
increased to $609.25.
Total revenues for the quarter ended September 30, 2020 increased to $202.7 million from $173.2
million in the third quarter of 2019 reflecting the
continuing recovery of investment asset unrealized losses which
occurred during the first quarter of 2020. Despite the disruption
in financial credit markets as a result of the COVID-19 pandemic,
the Company reported that in excess of 97% of its fixed income
investment portfolio remained in investment grade categories as of
September 30, 2020. Mr. Moody noted,
"While encountering an unprecedented set of circumstances we are
continuing to move forward. Our annuity sales for the first nine
months increased 29% over last year. Life insurance sales, which
are much more dependent upon person-to-person interaction, have
increased over 9% so far this year compared to 2019. These sales
successes illustrate the entrepreneurial spirit of our independent
distribution partners and the resiliency of our home office team in
continuing to support their sales and marketing efforts."
Consolidated net earnings in the quarter and nine months ended
September 30, 2020 incorporate
adjustments emanating from the Company's annual review of actuarial
assumptions associated with its in force life insurance and annuity
books of business. Commenting on the results, Mr. Moody indicated,
"Each year in the third quarter, our actuarial professionals
conduct detailed studies and analysis regarding the performance of
our business identifying changes in trends and factors that may
have deviated from what was originally assumed when we priced our
products. Given what has progressively occurred in recent times
with low interest rates and investment yields, the need for
policyholders to increasingly access the liquidity features of our
products, and volatility in financial markets, we updated our
assumptions during the quarter to more closely align with current
experience which in some cases caused additional reserves to be
established and in other cases necessitated amortizing deferred
costs of business more rapidly. The alignment should allow more
consistent reporting of future financial results."
National Western Life Group, Inc. is the parent organization of
National Western Life Insurance Company, which is the parent
organization of Ozark National Life Insurance Company, both stock
life insurance companies in aggregate offering a broad portfolio of
individual universal life, whole life and term insurance plans, as
well as annuity products. At September 30,
2020, the Company maintained consolidated total assets of
$12.4 billion, consolidated
stockholders' equity of $2.2 billion,
and combined life insurance inforce of $22.2
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 Financial Results (Unaudited)
|
(In thousands
except per share data)
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
September
30,
|
|
September
30,
|
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Revenues:
|
|
|
|
|
|
|
|
|
Revenues, excluding
investment and index option
|
$
|
165,132
|
|
|
170,372
|
|
|
493,410
|
|
|
516,931
|
|
gains
(losses)
|
|
|
|
|
|
|
|
|
Realized and
unrealized gains (losses) on index options
|
|
31,520
|
|
|
3,296
|
|
|
(34,865)
|
|
|
63,127
|
|
Realized gains
(losses) on investments
|
|
6,050
|
|
|
(502)
|
|
|
12,660
|
|
|
3,702
|
|
Total
revenues
|
|
202,702
|
|
|
173,166
|
|
|
471,205
|
|
|
583,760
|
|
|
|
|
|
|
|
|
|
|
Benefits and
expenses:
|
|
|
|
|
|
|
|
|
Life and other policy
benefits
|
|
26,940
|
|
|
39,918
|
|
|
94,005
|
|
|
101,764
|
|
Amortization of
deferred acquisition costs and value of business
acquired
|
|
50,800
|
|
|
22,998
|
|
|
111,937
|
|
|
86,573
|
|
Universal life and
annuity contract interest
|
|
85,879
|
|
|
59,445
|
|
|
119,625
|
|
|
200,500
|
|
Other operating
expenses
|
|
25,754
|
|
|
25,813
|
|
|
74,730
|
|
|
77,196
|
|
Total benefits and
expenses
|
|
189,373
|
|
|
148,174
|
|
|
400,297
|
|
|
466,033
|
|
|
|
|
|
|
|
|
|
|
Earnings before
income taxes
|
|
13,329
|
|
|
24,992
|
|
|
70,908
|
|
|
117,727
|
|
Income tax
expense
|
|
2,504
|
|
|
5,003
|
|
|
13,732
|
|
|
23,844
|
|
Net
earnings
|
$
|
10,825
|
|
|
19,989
|
|
|
57,176
|
|
|
93,883
|
|
|
|
|
|
|
|
|
|
|
Net earnings
attributable to Class A shares
|
$
|
10,519
|
|
|
19,424
|
|
|
55,560
|
|
|
91,228
|
|
|
|
|
|
|
|
|
|
|
Diluted Earnings
Per Class A Share
|
$
|
3.06
|
|
|
5.65
|
|
|
16.17
|
|
|
26.55
|
|
|
|
|
|
|
|
|
|
|
Diluted Weighted
Average Class A Shares
|
|
3,436
|
|
|
3,436
|
|
|
3,436
|
|
|
3,436
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September
30,
|
|
December
31,
|
|
|
|
|
|
|
2020
|
|
2019
|
|
|
|
|
|
|
|
|
|
Book value per
share
|
|
|
|
|
$
|
609.25
|
|
|
585.32
|
|
Less: Per share
impact of accumulated other comprehensive income (loss)
|
|
28.81
|
|
|
16.53
|
|
Book value per share,
excluding accumulated other comprehensive income (loss)
*
|
$
|
580.44
|
|
|
568.79
|
|
|
|
*
|
Book value per share
excluding accumulated other comprehensive income (loss) is a
non-GAAP financial measure. Accumulated other comprehensive income
(loss) totaled $104.8 million at September 30, 2020 and $60.1
million at December 31, 2019. Since accumulated other comprehensive
income (loss) fluctuates from quarter to quarter due to unrealized
changes in the fair value of investments caused primarily by
changes in market interest rates, National Western Life Group, Inc.
believes this financial measure provides useful supplemental
information.
|
Investor Relations Contact:
Brian M. Pribyl - Senior Vice
President, Chief Financial Officer and Treasurer
(512) 836-1010
bpribyl@nationalwesternlife.com
www.nwlgi.com
View original content to download
multimedia:http://www.prnewswire.com/news-releases/national-western-life-group-inc-announces-2020-third-quarter-earnings-301167899.html
SOURCE National Western Life Group, Inc.