AUSTIN, Texas, Aug. 7, 2020 /PRNewswire/ -- Ross R. Moody, Chairman of the Board, President,
and Chief Executive Officer of National Western Life Group, Inc.
(Nasdaq: NWLI), announced today second quarter 2020 consolidated
net earnings of $48.4 million, or
$13.69 per diluted Class A common
share, compared with consolidated net earnings of $33.7 million, or $9.53 per diluted Class A common share, for the
second quarter of 2019. For the six months ended June 30, 2020, the Company reported consolidated
net earnings of $46.4 million, or
$13.11 per diluted Class A common
share, compared with $73.9 million,
or $20.90 per diluted Class A common
share, a year ago. The Company's book value per share as of
June 30, 2020 was $600.31.
Total revenues increased in the second quarter of 2020 to
$216.0 million from $192.7 million in the second quarter of 2019
reflecting recovery of a portion of the investment asset unrealized
losses which occurred during the first quarter of 2020. Net
realized and unrealized gains on investments and index options were
$43.4 million in the second quarter
of 2020 compared to net realized and unrealized losses of
$103.1 million in the first quarter.
Mr. Moody observed, "We were hopeful that the market disruption
caused by the COVID-19 pandemic upon the first quarter results
would be a temporary aberration and our second quarter results
validated that outlook to a certain degree. I am extremely proud of
how quickly our management teams adapted to the situation and put
our staff in a position to continue business operations without
interruption." The Company announced that life insurance
sales increased 10% in the first half of 2020 over the same time
frame last year while annuity sales increased 26% over the same
period.
Consolidated net earnings in the quarter ended June 30, 2020 increased 44% from the amount
reported in the second quarter of 2019, elevating the Company's
book value per share over $600 for
the first time. Mr. Moody commented on the results saying, "Our
emphasis on creating a solid financial foundation is validated
during challenging times and allows us to take on obstacles like
the pandemic and continue forward in executing our strategic
initiatives." Mr. Moody noted that the second quarter results
included consolidated life insurance claims of $1.1 million due to COVID-19. "Claim experience
thus far has been well within our pricing assumptions as we
continue to monitor and track this activity," he added.
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 June 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 $22.5
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 Financial Results (Unaudited)
|
(In thousands
except per share data)
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
|
|
June 30,
|
|
June 30,
|
|
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
Revenues:
|
|
|
|
|
|
|
|
|
|
Revenues, excluding
investment and index option
|
$
|
172,647
|
|
|
175,282
|
|
|
328,278
|
|
|
346,560
|
|
|
gains
(losses)
|
|
|
|
|
|
|
|
|
|
Realized and
unrealized gains (losses) on index options
|
|
40,243
|
|
|
17,828
|
|
|
(66,385)
|
|
|
59,830
|
|
|
Realized gains
(losses) on investments
|
|
3,125
|
|
|
(425)
|
|
|
6,610
|
|
|
4,204
|
|
|
Total
revenues
|
|
216,015
|
|
|
192,685
|
|
|
268,503
|
|
|
410,594
|
|
|
|
|
|
|
|
|
|
|
|
|
Benefits and
expenses:
|
|
|
|
|
|
|
|
|
|
Life and other policy
benefits
|
|
33,431
|
|
|
33,657
|
|
|
67,065
|
|
|
61,846
|
|
|
Amortization of
deferred acquisition costs and
|
|
31,100
|
|
|
31,411
|
|
|
61,137
|
|
|
63,575
|
|
|
value of business
acquired
|
|
|
|
|
|
|
|
|
|
Universal life and
annuity contract interest
|
|
61,772
|
|
|
60,139
|
|
|
33,746
|
|
|
141,055
|
|
|
Other operating
expenses
|
|
29,154
|
|
|
25,334
|
|
|
48,976
|
|
|
51,383
|
|
|
Total benefits and
expenses
|
|
155,457
|
|
|
150,541
|
|
|
210,924
|
|
|
317,859
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings before
income taxes
|
|
60,558
|
|
|
42,144
|
|
|
57,579
|
|
|
92,735
|
|
|
Income tax
expense
|
|
12,145
|
|
|
8,448
|
|
|
11,228
|
|
|
18,841
|
|
|
Net
earnings
|
$
|
48,413
|
|
|
33,696
|
|
|
46,351
|
|
|
73,894
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings
attributable to Class A shares
|
$
|
47,044
|
|
|
32,743
|
|
|
45,040
|
|
|
71,804
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted Earnings
Per Class A Share
|
$
|
13.69
|
|
|
9.53
|
|
|
13.11
|
|
|
20.90
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted Weighted
Average Class A Shares
|
|
3,436
|
|
|
3,436
|
|
|
3,436
|
|
|
3,436
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30,
|
|
December
31,
|
|
|
|
|
|
|
|
2020
|
|
2019
|
|
|
|
|
|
|
|
|
|
|
|
Book value per
share
|
|
|
|
|
$
|
600.31
|
|
|
585.32
|
|
|
Less: Per share
impact of accumulated other comprehensive income (loss)
|
|
22.85
|
|
|
16.53
|
|
Book value per share,
excluding accumulated other comprehensive income (loss)
*
|
$
|
577.46
|
|
568.79
|
|
*
|
Book value per share
excluding accumulated other comprehensive income (loss) is a
non-GAAP financial measure. Accumulated other comprehensive income
(loss) totaled $83.1 million at June 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.
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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.