AUSTIN,
Texas, Nov. 8, 2023 /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 2023 consolidated net
earnings of $64.7 million, or
$18.30 per diluted share of Class A
Common Stock, compared with restated consolidated net earnings of
$35.2 million, or $9.95 per diluted share of Class A Common Stock,
for the third quarter ended September 30,
2022. For the nine months ended September 30, 2023, the Company reported
consolidated net earnings of $106.7
million, or $30.17 per diluted
share of Class A Common Stock, compared with $229.3 million, or $64.84 per diluted share of Class A Common Stock,
a year ago. The Company's book value per share as of
September 30, 2023 increased to $617.16.
In the quarters ended September 30,
2023 and 2022, the Company reported pretax earnings of
$98.9 million and $44.9 million, respectively. Pretax earnings in
the third quarter of 2023 benefited from a $25.7 million realized gain on the sale of a
long-term investment asset as well as from a $19.4 million positive earnings adjustment to its
fixed-index annuity product liabilities as a result of the
Company's review of actuarial assumptions conducted annually in the
third calendar quarter of each year.
The Company's reported results reflect the liability accounting
required under the Accounting for Long-Duration Contracts ("LDTI")
accounting standard effective in 2023. The Company's pretax
earnings include a benefit of $29.4
million and $33.6 million for
the quarters ended September 30, 2023
and 2022, respectively, for decreases in the Market Risks Benefits
liability. Under LDTI, the Market Risk Benefits liability is
determined based upon interest rate levels in effect at each
respective reporting date with increases in interest rate levels
producing decreases in the liability balance.
Commenting on the reported results, Mr. Moody noted, "In
addition to reporting our financial results, it has been a very
active and productive period for the Company as evidenced by our
October 8th agreement to join
Prosperity Life Group's organization through acquisition. While we
continue to conduct our business operations in the normal course,
we look forward to the merger being finalized in the first half of
2024 and combining resources with Prosperity Life Group's existing
strong platform."
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, 2023, the Company
maintained consolidated total assets of $12.1 billion, consolidated stockholders' equity
of $2.2 billion, and combined life
insurance in force of $18.5
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. These risks and uncertainties also include, (1) the
timing of completion of the proposed merger (the "Proposed
Transaction") contemplated by the Company's October 8, 2023 merger agreement (the "Merger
Agreement") with S. USA Life Insurance Company, Inc. ("S.USA") and
its direct wholly owned subsidiary ("PGH Merger Inc.") is
uncertain; (2) the conditions to the closing of the Proposed
Transaction may not be satisfied; (3) regulatory approvals required
for the Proposed Transaction may not be obtained, or required
regulatory approvals may delay the Proposed Transaction or result
in the imposition of conditions that could have a material adverse
effect on the Company or S.USA or cause certain conditions to the
closing to not be satisfied, which could result in the termination
of the Merger Agreement; (4) the business of the Company or S.USA
could suffer as a result of uncertainty surrounding the Proposed
Transaction; (5) events, changes or other circumstances could occur
that could give rise to the termination of the Merger Agreement;
and there are risks related to disruption of management's attention
from the ongoing business operations of the Company or S.USA due to
the Proposed Transaction; (6) the announcement or pendency of the
Proposed Transaction could affect the relationships of the Company
or S.USA with its clients, and operating results and business
generally, including our ability to retain and attract employees;
(7) the outcome of any legal proceedings initiated against the
Company or S.USA following the announcement of the Proposed
Transaction could adversely affect the Company or S.USA, including
their ability to consummate the Proposed Transaction; and (8) the
Company or S.USA mat be adversely affected by other economic,
business, and/or competitive factors as well as management's
response to any of the factors described in this paragraph. The
foregoing review of important factors should not be construed as
exhaustive and should be read in conjunction with the other
cautionary statements that are included herein and elsewhere,
including the risk factors included in the Company's most recent
Annual Report on Form 10-K and Quarterly Report on Form 10-Q and
other documents of the Company on file with the SEC. The Company
does not undertake any obligation to update, correct or otherwise
revise any forward-looking statements. All subsequent written and
oral forward-looking statements attributable to the Company and/or
any person acting on its behalf are expressly qualified in their
entirety by this section.
Summary of
Consolidated Financial Results (Unaudited)
|
(In thousands except
per share data)
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
September
30,
|
|
September
30,
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Revenues:
|
|
|
|
|
|
|
|
|
Revenues, excluding
investment and index option gains (losses)
|
$
|
150,462
|
|
153,962
|
|
464,259
|
|
481,558
|
Realized and unrealized
gains (losses) on index options
|
|
(19,655)
|
|
(12,550)
|
|
5,246
|
|
(89,173)
|
Realized gains on
investments
|
|
25,883
|
|
745
|
|
25,976
|
|
6,305
|
Total
revenues
|
|
156,690
|
|
142,157
|
|
495,481
|
|
398,690
|
|
|
|
|
|
|
|
|
|
Benefits and
expenses:
|
|
|
|
|
|
|
|
|
Life and other policy
benefits
|
|
26,557
|
|
27,768
|
|
83,435
|
|
87,481
|
Policy benefit
remeasurement (gains) and losses
|
|
8,360
|
|
9,827
|
|
8,360
|
|
9,827
|
Market risk benefits
expense
|
|
(29,439)
|
|
(33,571)
|
|
6,733
|
|
(150,069)
|
Amortization of
deferred transaction costs
|
|
20,326
|
|
21,613
|
|
63,600
|
|
67,549
|
Universal life and
annuity contract interest
|
|
(10,417)
|
|
42,235
|
|
52,742
|
|
2,466
|
Other operating
expenses
|
|
42,430
|
|
29,387
|
|
129,556
|
|
92,290
|
Total benefits and
expenses
|
|
57,817
|
|
97,259
|
|
344,426
|
|
109,544
|
|
|
|
|
|
|
|
|
|
Earnings before
income taxes
|
|
98,873
|
|
44,898
|
|
151,055
|
|
289,146
|
Income tax
expense
|
|
34,148
|
|
9,710
|
|
44,392
|
|
59,869
|
Net
earnings
|
$
|
64,725
|
|
35,188
|
|
106,663
|
|
229,277
|
|
|
|
|
|
|
|
|
|
Net earnings
attributable to Class A shares
|
$
|
62,895
|
|
34,193
|
|
103,647
|
|
222,793
|
|
|
|
|
|
|
|
|
|
Diluted Earnings Per
Class A Share
|
$
|
18.30
|
|
9.95
|
|
30.17
|
|
64.84
|
|
|
|
|
|
|
|
|
|
Diluted Weighted
Average Class A Shares
|
|
3,436
|
|
3,436
|
|
3,436
|
|
3,436
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September
30,
|
|
December 31,
|
|
|
|
|
|
|
2023
|
|
2022
|
|
|
|
|
|
|
|
|
|
Book value per
share
|
|
|
|
|
$
|
617.16
|
|
602.56
|
Less: Per share impact
of accumulated other
comprehensive income (loss)
|
|
|
|
|
|
(146.23)
|
|
(131.52)
|
Book value per share,
excluding accumulated other
comprehensive income (loss) *
|
|
|
|
|
$
|
763.39
|
|
734.08
|
|
|
*
|
Book value per share
excluding accumulated other comprehensive income (loss) is a
non-GAAP financial measure. Accumulated other
comprehensive income (loss) totaled $(531.7) million at
September 30, 2023 and $(478.2) million at December 31, 2022.
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@nwlic.com
www.nwlgi.com
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SOURCE National Western Life Group, Inc.