National Western Life Announces 2008 Second Quarter Earnings
August 08 2008 - 4:00PM
PR Newswire (US)
AUSTIN, Texas, Aug. 8 /PRNewswire-FirstCall/ -- Ross R. Moody,
President of National Western Life Insurance Company
(NASDAQ:NWLIA), announced today second quarter 2008 consolidated
net earnings of $18.1 million, or $5.10 per diluted Class A share,
compared with consolidated net earnings of $21.9 million, or $6.12
per diluted Class A share, reported for the second quarter of 2007.
Consolidated net earnings for the first six months of 2008 were
$32.6 million, or $9.18 per diluted share, compared with $40.5
million, or $11.35 per diluted share, reported a year ago. The
Company's book value per share at June 30, 2008 increased to
$283.94. Operating revenues, excluding realized investment gains
(losses) and derivative income (loss), totaled $127.4 million for
the quarter ended June 30, 2008, an increase of 5% from revenues of
$121.3 million reported in the second quarter of 2007, while
year-to-date operating revenues also increased 5% to $250.6 million
in 2008 from $239.7 million in the first six months of 2007. Mr.
Moody indicated that life insurance business growth continues to be
a focus of the Company. "Life insurance sales growth continues to
be a positive development for National Western as we saw an 11%
growth rate in the first half of 2008 over 2007, keeping in mind
that 2007 was a record sales year for the Company." Mr. Moody noted
that operating expenses and policy benefit expense were lower in
the first six months of 2008 compared to 2007 reflecting the
Company's attention to risk and expense management. However, he
further noted that the Company's earnings continue to be impacted
by the low interest rate level environment and volatile equity
markets. "We continue to recognize a higher level of amortization
of deferred policy acquisition costs due to the pressure low
interest rate levels put on our existing blocks of business," Mr.
Moody stated. The Company's deferred policy acquisition cost
amortization expense increased to $56.5 million, before taxes, in
the first six months of 2008 compared to $49.4 million in the
comparable period in 2007. Founded in 1956, National Western Life
is a stock life insurance company offering a broad portfolio of
individual universal life, whole life and term insurance plans,
annuity products, and investment contracts meeting the financial
needs of its customers in 49 states as well as residents of various
countries in Central and South America, the Caribbean, Eastern
Europe, Asia and the Pacific Rim. The Company has approximately 290
employees and 8,900 contracted independent agents, brokers and
consultants, and at June 30, 2008, maintained total assets of $6.8
billion, stockholders' equity of $1.0 billion, and life insurance
in force of $18.3 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
(In thousands except per share data) Three Months Ended Six Months
Ended June 30, June 30, 2008 2007 2008 2007 Revenues: Revenues,
excluding realized investment gains (losses) and derivative income
(loss) $127,404 121,251 250,642 239,717 Derivative income (loss)
(13,756) 23,279 (38,313) 18,684 Realized gains (losses) on
investments (267) 4,165 (311) 4,406 Total revenues $113,381 148,695
212,018 262,807 Earnings: Earnings from operations $18,315 19,144
32,790 37,659 Net realized gains (losses) on investments (173)
2,707 (202) 2,864 Net earnings $18,142 21,851 32,588 40,523 Net
earnings attributable to Class A Shares $17,627 21,231 31,664
39,372 Basic Earnings Per Class A Share: Earnings from operations
$5.20 5.44 9.31 10.70 Net realized gains (losses) on investments
(0.05) 0.76 (0.06) 0.81 Net earnings $5.15 6.20 9.25 11.51 Basic
Weighted Average Shares 3,426 3,422 3,424 3,422 Diluted Earnings
Per Class A Share: Earnings from operations $5.15 5.36 9.24 10.55
Net realized gains (losses) on investments (0.05) 0.76 (0.06) 0.80
Net earnings $5.10 6.12 9.18 11.35 Diluted Weighted Average Shares
3,453 3,467 3,450 3,468 Investor Relations Contact: Brian M. Pribyl
Senior Vice President, Chief Financial & Administrative Officer
(512) 836-1010 http://www.nationalwesternlife.com/ DATASOURCE:
National Western Life Insurance Company CONTACT: Brian M. Pribyl,
Senior Vice President, Chief Financial & Administrative Officer
of National Western Life Insurance Company, +1-512-836-1010, Web
site: http://www.nationalwesternlife.com/
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