AUSTIN, Texas, Aug. 4, 2016 /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 2016 consolidated
net earnings of $26.3 million, or
$7.43 per diluted Class A common
share, compared with consolidated net earnings of $28.9 million, or $8.16 per diluted Class A common share, for the
second quarter of 2015. For the six months ended June 30, 2016, the Company reported consolidated
net earnings of $43.5 million, or
$12.31 per diluted Class A common
share, compared with $50.2 million,
or $14.19 per diluted Class A common
share, a year ago. The Company's book value per share
increased to $467.64 as of
June 30, 2016 from $454.67 at March 31,
2016.
The Company reported earnings from operations, excluding net
realized gains and losses on investments, of $24.5 million for the quarter ended June 30, 2016, or $6.92 per diluted Class A common share, compared
to $26.1 million, or $7.38 per diluted Class A common share in the
same period for 2015. Mr. Moody commented on the earnings results
saying, "The environment for life insurers, particularly those such
as National Western who primarily sell interest-sensitive products,
remains very challenging. The low interest environment continues to
put pressure on our interest rate margins." Earnings from
operations for the six months ended June 30,
2016 were $40.2 million, or
$11.36 per diluted Class A common
share, versus $46.8 million, or
$13.23 per diluted Class A common
share, recorded during the same period of 2015. Mr. Moody noted,
"With interest rates already low, and despite the Brexit outcome
knocking them even lower, we choose to maintain an investment
portfolio consisting of investment grade holdings significantly
higher than industry averages."
Revenues, excluding net realized and unrealized gains and losses
on index options and investments, increased to $162.2 million from $159.7
million for the second quarter of 2015. Mr. Moody indicated,
"Our management efforts are currently focused on generating top
line revenue growth. We have initiatives in place to stimulate
annuity sales production during the third quarter and we have
dedicated internal resources towards developing new distribution
relationships and market niches for our domestic life insurance
line of business. We were very pleased to have our "A" (Excellent)
rating affirmed again by A.M. Best during the second quarter as
this provides support to our business development efforts."
National Western Life Group, Inc. is the parent organization of
National Western Life Insurance Company (NWLIC). Founded in 1956,
NWLIC 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 266 employees and
approximately 25,400 contracted independent agents, brokers, and
consultants. At June 30, 2016, the
Company maintained total consolidated assets of $11.8 billion, stockholders' equity of
$1.7 billion, and life insurance in
force of $21.4 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 (Unaudited)
(In thousands
except per share data)
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
|
June 30,
|
|
June 30,
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
Revenues:
|
|
|
|
|
|
|
|
|
Revenues, excluding
investment and index option gains (losses)
|
$
|
162,218
|
|
|
159,742
|
|
|
321,680
|
|
|
314,941
|
|
Realized and
unrealized gains (losses) on index options
|
|
2,094
|
|
|
(8,782)
|
|
|
(10,807)
|
|
|
(17,069)
|
|
Realized gains on
investments
|
|
2,782
|
|
|
4,258
|
|
|
5,163
|
|
|
5,236
|
|
Total
revenues
|
|
167,094
|
|
|
155,218
|
|
|
316,036
|
|
|
303,108
|
|
|
|
|
|
|
|
|
|
|
Earnings:
|
|
|
|
|
|
|
|
|
Earnings from
operations
|
$
|
24,477
|
|
|
26,091
|
|
|
40,189
|
|
|
46,781
|
|
Net realized gains on
investments
|
|
1,809
|
|
|
2,767
|
|
|
3,356
|
|
|
3,403
|
|
Net
earnings
|
|
26,286
|
|
|
28,858
|
|
|
43,545
|
|
|
50,184
|
|
|
|
|
|
|
|
|
|
|
Net earnings
attributable to Class A shares
|
|
25,543
|
|
|
28,042
|
|
|
42,313
|
|
|
48,765
|
|
|
|
|
|
|
|
|
|
|
Basic Earnings
Per Class A Share:
|
|
|
|
|
|
|
|
|
Earnings from
operations
|
$
|
6.92
|
|
|
7.38
|
|
|
11.36
|
|
|
13.23
|
|
Net realized gains on
investments
|
|
0.51
|
|
|
0.78
|
|
|
0.95
|
|
|
0.96
|
|
Net
earnings
|
|
7.43
|
|
|
8.16
|
|
|
12.31
|
|
|
14.19
|
|
|
|
|
|
|
|
|
|
|
Basic Weighted
Average Class A Shares
|
|
3,436
|
|
|
3,436
|
|
|
3,436
|
|
|
3,436
|
|
|
|
|
|
|
|
|
|
|
Diluted
Earnings Per Class A Share:
|
|
|
|
|
|
|
|
|
Earnings from
operations
|
$
|
6.92
|
|
|
7.38
|
|
|
11.36
|
|
|
13.23
|
|
Net realized gains on
investments
|
|
0.51
|
|
|
0.78
|
|
|
0.95
|
|
|
0.96
|
|
Net
earnings
|
|
7.43
|
|
|
8.16
|
|
|
12.31
|
|
|
14.19
|
|
|
|
|
|
|
|
|
|
|
Diluted Weighted
Average Class A Shares
|
|
3,436
|
|
|
3,437
|
|
|
3,436
|
|
|
3,437
|
|
Investor Relations Contact:
Brian M. Pribyl - Senior Vice President, Chief
Financial Officer and Treasurer
(512) 836-1010
bpribyl@nationalwesternlife.com
www.nwlgi.com
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/national-western-life-group-inc-announces-2016-second-quarter-earnings-300309486.html
SOURCE National Western Life Group, Inc.