AUSTIN, Texas, Nov. 5, 2015 /PRNewswire/ -- Ross R. Moody,
President and Interim Chief Executive Officer of National Western
Life Group, Inc. (Nasdaq: NWLI), announced today third quarter 2015
consolidated net earnings of $16.2
million, or $4.59 per diluted
Class A common share, compared with consolidated net earnings of
$28.5 million, or $8.05 per diluted Class A common share, for the
third quarter of 2014. For the nine months ended September 30, 2015, the Company (formerly
National Western Life Insurance Company and Subsidiaries) reported
consolidated net earnings of $66.4
million, or $18.77 per diluted
Class A common share, compared with $77.5
million, or $21.91 per diluted
Class A common share a year ago. The Company's book value per
share increased to $440.23 as of
September 30, 2015 from $437.86 at June 30,
2015.
Effective October 1, 2015,
National Western Life Group, Inc. (NWLGI) was established as the
parent organization of National Western Life Insurance Company
(National Western) under a previously announced holding company
reorganization. As a result of the reorganization, NWLGI replaced
National Western as the publicly held corporation. NWLGI continues
to conduct all of the operations previously conducted by National
Western and its subsidiaries and the consolidated assets,
liabilities, operations, and financial condition of NWLGI at the
date of reorganization are the same as those of National Western
immediately prior to the reorganization.
The Company reported earnings from operations, excluding net
realized gains and losses on investments, of $15.7 million for the three months ended
September 30, 2015, or $4.44 per diluted Class A common share, compared
to $27.1 million, or $7.65 per diluted Class A common share, in the
same period for 2014. Mr. Moody commented on the earnings results
saying, "Operating results for the quarter were dampened by higher
reserves required for our fixed-index annuity business in force.
The lackluster performance of equity markets as of the end of the
third quarter has significantly depressed the market value of
options purchased for these products such that certain reserve
credits we normally are able to benefit from were not available
this reporting period. Fortunately, this is a temporary reporting
impact that will reverse itself when market values normalize to
historical levels and we readjust other crediting mechanism
components."
Revenues for the quarter ended September
30, 2015, excluding realized and unrealized gains and losses
on index options and investments, increased to $158.1 million from $154.0
million in the third quarter of 2014 principally due to
gains in universal life contract revenues and net investment
income. Mr. Moody noted, "Our book of business continues to perform
well with overall favorable mortality and persistency experience,
and our oversight of general operating expenses remains vigilant.
Like our peers in the industry, finding greater investment yield
within our self-imposed risk/reward parameters is an ongoing focus
and challenge."
NWLGI is the parent organization of National Western. Founded in
1956, National Western 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 international countries. National Western has
265 employees and approximately 22,700 contracted independent
agents, brokers, and consultants. At September 30, 2015, the Company maintained total
consolidated assets of $11.5 billion,
stockholders' equity of $1.6 billion,
and life insurance in force of $22.6
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.
National Western
Life Group, Inc.
(Formerly National
Western Life Insurance Company and Subsidiaries)
News Release -
Page 2
|
|
|
|
|
|
|
|
|
Summary of
Consolidated Operating Results (Unaudited)
(In thousands
except per share data)
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
September
30,
|
|
September
30,
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
Revenues:
|
|
|
|
|
|
|
|
Revenues, excluding
investment and index option gains (losses)
|
158,107
|
|
153,973
|
|
473,047
|
|
468,440
|
Realized and
unrealized gains (losses) on index options
|
(52,816)
|
|
3,479
|
|
(69,884)
|
|
49,278
|
Realized gains on
investments
|
813
|
|
2,169
|
|
6,049
|
|
6,747
|
Total
revenues
|
106,104
|
|
159,621
|
|
409,212
|
|
524,465
|
|
|
|
|
|
|
|
|
Earnings:
|
|
|
|
|
|
|
|
Earnings from
operations
|
15,693
|
|
27,056
|
|
62,473
|
|
73,089
|
Net realized gains on
investments
|
528
|
|
1,410
|
|
3,932
|
|
4,386
|
Net
earnings
|
16,221
|
|
28,466
|
|
66,405
|
|
77,475
|
|
|
|
|
|
|
|
|
Net earnings
attributable to Class A shares
|
15,763
|
|
27,661
|
|
64,527
|
|
75,284
|
|
|
|
|
|
|
|
|
Basic Earnings
Per Class A Share:
|
|
|
|
|
|
|
|
Earnings from
operations
|
4.44
|
|
7.65
|
|
17.67
|
|
20.68
|
Net realized gains on
investments
|
0.15
|
|
0.40
|
|
1.11
|
|
1.24
|
Net
earnings
|
4.59
|
|
8.05
|
|
18.78
|
|
21.92
|
|
|
|
|
|
|
|
|
Basic Weighted
Average Class A Shares
|
3,436
|
|
3,436
|
|
3,436
|
|
3,435
|
|
|
|
|
|
|
|
|
Diluted
Earnings Per Class A Share:
|
|
|
|
|
|
|
|
Earnings from
operations
|
4.44
|
|
7.65
|
|
17.66
|
|
20.67
|
Net realized gains on
investments
|
0.15
|
|
0.40
|
|
1.11
|
|
1.24
|
Net
earnings
|
4.59
|
|
8.05
|
|
18.77
|
|
21.91
|
|
|
|
|
|
|
|
|
Diluted Weighted
Average Class A Shares
|
3,437
|
|
3,438
|
|
3,437
|
|
3,437
|
Investor Relations Contact:
Brian M. Pribyl - Senior Vice President, Chief
Financial Officer and Treasurer
(512) 836-1010
bpribyl@nationalwesternlife.com
www.nationalwesternlife.com
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/national-western-life-group-inc-announces-2015-third-quarter-earnings-300173427.html
SOURCE National Western Life Group, Inc.