AUSTIN, Texas, Jan. 18, 2021 /PRNewswire/ -- National
Western Life Insurance Company ("NWLIC"), a wholly owned subsidiary
of National Western Life Group, Inc. (Nasdaq: NWLI), announced
today the execution of an annuity reinsurance transaction with
Prosperity Life Assurance Limited ("Prosperity"), a Bermuda based reinsurer rated A- (Excellent)
by A. M. Best. The effective date of the transaction is
December 31, 2020.
In a strategic move to expand financial flexibility and provide
opportunity for incremental earnings, the Company entered into an
annuity reinsurance agreement with Prosperity, an emerging provider
of customized and innovative reinsurance solutions to the life
insurance and annuity industry, in a transaction encompassing
approximately $1.7 billion in fixed
annuity reserves.
With this agreement, NWLIC expects to improve its overall
financial performance and risk-based capital (RBC) ratios. "By
reinsuring older fixed annuity business, we anticipate improving
our already strong capital position and RBC ratio as well as
increasing our financial flexibility," commented Ross R. Moody, Chairman of the Board and Chief
Executive Officer. NWLIC will continue to administer and service
the policies included in the transaction.
Following an announcement made early in 2020 of NWLIC's intent
to strengthen the organization by expanding product lines and
diversifying into new distribution channels, the transaction with
Prosperity further supports and reinforces the Company's strategic
commitment to enhance its product portfolio management efforts
while upgrading its technology platforms supporting its business
operations.
About National Western Life:
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 September 30,
2020, National Western Life Group, Inc. maintained
consolidated total assets of $12.4
billion, consolidated stockholders' equity of $2.2 billion, and combined life insurance inforce
of $22.2 billion.
Release Contact:
Stephen M. Van De Berg
Chief Actuary and Chief Risk Officer
(512) 836-1010
svandeberg@nationalwesternlife.com
www.nationalwesternlife.com
View original content to download
multimedia:http://www.prnewswire.com/news-releases/national-western-life-announces-reinsurance-transaction-301210229.html
SOURCE National Western Life Group, Inc.