AUSTIN, Texas, Feb. 28, 2020 /PRNewswire/ -- Ross R. Moody,
Chairman of the Board, President, and Chief Executive Officer of
National Western Life Group, Inc. (Nasdaq: NWLI), announced today
2019 consolidated net earnings of $131.6
million, or $37.22 per diluted
Class A common share, compared with consolidated net earnings of
$116.8 million, or $33.02 per diluted Class A common share, for
2018. The Company's book value per share increased to $585.32 as of December 31,
2019 from $522.76 as of
December 31, 2018. For the
quarter ended December 31, 2019, the
Company reported consolidated net earnings of $37.7 million, or $10.67 per diluted Class A common share, compared
with $21.8 million, or $6.16 per diluted Class A common share, in the
fourth quarter of 2018.
Total revenues increased 49% in 2019 to $819.2 million from $551.6
million in 2018. Operating revenues, excluding investment
and index options gains and losses, increased to $689.7 million in the year ended December 31, 2019 from $623.2 million for the year 2018. Mr. Moody
indicated, "Our primary focus has always been on the profitability
of our business and by that measure we are extremely pleased with
the results reported for 2019. In addition, growing and expanding
our distribution channels to create significant top-line growth has
emerged as a top focal point over the past year." Noting that the
Company's domestic life insurance sales grew 26% in 2019, Mr. Moody
added, "We have created a proficiency in the single premium
equity-indexed life insurance market and our acquisition earlier in
2019 of Ozark National Life Insurance Company brings another niche
market where we believe there are opportunities for growth. It is
incumbent upon us to build on these existing markets as well as to
expand into new areas."
Pretax earnings of $165.2 million
for the year ended December 31, 2019
included a contribution of $21.0
million from Ozark National Life Insurance Company and
N.I.S. Financial Services, Inc. subsequent to their acquisition
effective January 31, 2019. Mr.
Moody commented on the acquisition saying, "We have demonstrated
the ability to create profit organically over time. Adding Ozark
National and NIS to the organization has not only proven to be a
nice complement to our existing product lines but also a successful
deployment of our capital."
National Western Life Group, Inc. is the parent organization of
National Western Life Insurance Company and Ozark National Life
Insurance Company, 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, 2019, the Company
maintained consolidated total assets of $12.6 billion, consolidated stockholders' equity
of $2.1 billion, and combined life
insurance inforce of $23.3
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 Financial Results (Unaudited)
(In thousands
except per share data)
|
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
|
December
31,
|
|
December
31,
|
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
Revenues:
|
|
|
|
|
|
|
|
|
|
Revenues, excluding
investment and index option
|
$
|
172,808
|
|
|
155,230
|
|
|
689,740
|
|
|
623,180
|
|
|
gains
(losses)
|
|
|
|
|
|
|
|
|
|
Realized and
unrealized gains (losses) on index options
|
|
60,081
|
|
|
(115,585)
|
|
|
123,207
|
|
|
(80,004)
|
|
|
Realized gains
(losses) on investments
|
|
2,539
|
|
|
2,841
|
|
|
6,241
|
|
|
8,423
|
|
|
Total
revenues
|
|
235,428
|
|
|
42,486
|
|
|
819,188
|
|
|
551,599
|
|
|
|
|
|
|
|
|
|
|
|
|
Benefits and
expenses:
|
|
|
|
|
|
|
|
|
|
Life and other policy
benefits
|
|
35,578
|
|
|
20,690
|
|
|
137,342
|
|
|
65,297
|
|
|
Amortization of
deferred acquisition costs and
|
|
|
|
|
|
|
|
|
|
value of business
acquired
|
|
30,229
|
|
|
24,698
|
|
|
116,802
|
|
|
114,771
|
|
|
Universal life and
annuity contract interest
|
|
94,830
|
|
|
(47,261)
|
|
|
295,330
|
|
|
136,055
|
|
|
Other operating
expenses
|
|
27,363
|
|
|
21,502
|
|
|
104,558
|
|
|
93,969
|
|
|
Total benefits and
expenses
|
|
188,000
|
|
|
19,629
|
|
|
654,032
|
|
|
410,092
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings before
income taxes
|
|
47,428
|
|
|
22,857
|
|
|
165,156
|
|
|
141,507
|
|
|
Income tax
expense
|
|
9,695
|
|
|
1,081
|
|
|
33,540
|
|
|
24,749
|
|
|
Net
earnings
|
$
|
37,733
|
|
|
21,776
|
|
|
131,616
|
|
|
116,758
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings
attributable to Class A shares
|
$
|
36,666
|
|
|
21,160
|
|
|
127,894
|
|
|
113,456
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted Earnings
Per Class A Share
|
$
|
10.67
|
|
|
6.16
|
|
|
37.22
|
|
|
33.02
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted Weighted
Average Class A Shares
|
|
3,436
|
|
|
3,436
|
|
|
3,436
|
|
|
3,436
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December
31,
|
|
|
December
31,
|
|
|
|
|
|
|
|
|
2019
|
|
|
2018
|
|
|
|
|
|
|
|
|
|
|
|
|
Book value per
share
|
|
|
|
|
$
|
585.32
|
|
|
522.76
|
|
|
Less: Per share
impact of accumulated other comprehensive income (loss)
|
|
16.53
|
|
|
(10.77)
|
|
|
Book value per share,
excluding accumulated other comprehensive income (loss)
*
|
$
|
568.79
|
|
|
533.53
|
|
|
|
|
*
|
Book value per share
excluding accumulated other comprehensive income is a non-GAAP
financial measure. Accumulated other comprehensive income totaled
$60.1 million at December 31, 2019 and $(37.0) million at December
31, 2018. 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.