AUSTIN, Texas, March 15, 2021 /PRNewswire/ -- Ross R. Moody, Chairman of the Board, President,
and Chief Executive Officer of National Western Life Group, Inc.
(Nasdaq: NWLI), announced today 2020 consolidated net earnings of
$92.3 million, or $26.11 per diluted Class A common share, compared
with consolidated net earnings of $131.6
million, or $37.22 per diluted
Class A common share, for 2019. The Company's book value per share
increased to $698.50 as of
December 31, 2020 from $582.07 as of December 31,
2019. For the quarter ended December
31, 2020, the Company reported consolidated net earnings of
$35.1 million, or $9.94 per diluted Class A common share, compared
with $37.7 million, or $10.67 per diluted Class A common share, in the
fourth quarter of 2019.
The Company reported total revenues for the year, excluding
realized and unrealized gains on index options and investments, of
$658.9 million in 2020 compared to
$689.7 million in 2019. Mr. Moody
noted that the decline was due to lower net investment income as a
consequence of the substantial decrease in interest rates during
2020 caused by the COVID-19 pandemic. Net investment income for the
year ended December 31, 2020 was
$402.4 million compared to
$432.3 million a year earlier.
Addressing the impact of lower yielding investments, Mr. Moody
highlighted the execution of a reinsurance transaction the Company
completed at the end of 2020. "In the past year, the life insurance
industry has experienced a heightened level of merger and
acquisition activity as well as consummations of reinsurance deals,
particularly involving life insurers such as National Western with
large legacy blocks of in force business with fixed interest rate
guarantees. These types of products have come under pressure as
traditional investment yields continue an unprecedented decline. As
previously reported, we successfully completed a reinsurance
agreement at December 31, 2020 that
transferred financial responsibility for approximately $1.7 billion of these fixed interest rate policy
obligations, which relieved us of the associated interest rate
spread compression and allows us to redeploy our capital
resources."
Mr. Moody indicated that the pandemic crisis presented
challenges but did not prevent the Company from achieving
successful operating results. "In terms of COVID-19 mortality
experience, we were fortunate that National Western and Ozark
National in the aggregate incurred only $7.9
million in net death claims, which was balanced out by
favorable mortality experienced with the remainder of our business.
From a new business standpoint, we had a very successful sales year
as our annuity sales were up 38% and our life insurance sales
increased over 6%."
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 December 31,
2020, the Company maintained consolidated total assets of
$14.6 billion, consolidated
stockholders' equity of $2.5 billion,
and combined life insurance in force of $22.0 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
|
|
Twelve Months
Ended
|
|
|
December
31,
|
|
December
31,
|
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Revenues:
|
|
|
|
|
|
|
|
|
Revenues, excluding
investment and index option
|
$
|
165,507
|
|
|
172,808
|
|
|
658,917
|
|
|
689,740
|
|
gains
|
|
|
|
|
|
|
|
|
Realized and
unrealized gains on index options
|
|
49,619
|
|
|
60,081
|
|
|
14,754
|
|
|
123,207
|
|
Realized gains on
investments
|
|
8,411
|
|
|
2,539
|
|
|
21,071
|
|
|
6,241
|
|
Total
revenues
|
|
223,537
|
|
|
235,428
|
|
|
694,742
|
|
|
819,188
|
|
|
|
|
|
|
|
|
|
|
Benefits and
expenses:
|
|
|
|
|
|
|
|
|
Life and other policy
benefits
|
|
37,331
|
|
|
35,578
|
|
|
131,337
|
|
|
137,342
|
|
Amortization of
deferred acquisition costs and
|
|
|
|
|
|
|
|
|
value of business
acquired
|
|
28,568
|
|
|
30,229
|
|
|
140,503
|
|
|
116,802
|
|
Universal life and
annuity contract interest
|
|
86,625
|
|
|
94,830
|
|
|
206,250
|
|
|
295,330
|
|
Other operating
expenses
|
|
29,854
|
|
|
27,363
|
|
|
104,584
|
|
|
104,558
|
|
Total benefits and
expenses
|
|
182,378
|
|
|
188,000
|
|
|
582,674
|
|
|
654,032
|
|
|
|
|
|
|
|
|
|
|
Earnings before
income taxes
|
|
41,159
|
|
|
47,428
|
|
|
112,068
|
|
|
165,156
|
|
Income tax
expense
|
|
6,024
|
|
|
9,695
|
|
|
19,756
|
|
|
33,540
|
|
Net
earnings
|
$
|
35,135
|
|
|
37,733
|
|
|
92,312
|
|
|
131,616
|
|
|
|
|
|
|
|
|
|
|
Net earnings
attributable to Class A shares
|
$
|
34,142
|
|
|
36,666
|
|
|
89,701
|
|
|
127,894
|
|
|
|
|
|
|
|
|
|
|
Diluted Earnings
Per Class A Share
|
$
|
9.94
|
|
|
10.67
|
|
|
26.11
|
|
|
37.22
|
|
|
|
|
|
|
|
|
|
|
Diluted Weighted
Average Class A Shares
|
|
3,436
|
|
|
3,436
|
|
|
3,436
|
|
|
3,436
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December
31,
|
|
December
31,
|
|
|
|
|
|
|
2020
|
|
2019
|
|
|
|
|
|
|
|
|
|
Book value per
share
|
|
|
|
|
$
|
698.50
|
|
|
582.07
|
|
Less: Per share
impact of accumulated other comprehensive income
|
|
108.75
|
|
|
16.53
|
|
Book value per share,
excluding accumulated other comprehensive income *
|
$
|
589.75
|
|
|
565.54
|
|
*
|
Book value per share
excluding accumulated other comprehensive income is a non-GAAP
financial measure. Accumulated other comprehensive income totaled
$395.4 million at December 31, 2020 and $60.1 million at December
31, 2019. Since accumulated other comprehensive income 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
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SOURCE National Western Life Group, Inc.