AUSTIN, Texas, Aug. 7, 2020 /PRNewswire/ — Ross R. Moody, Chairman of its Board, President, and Chief Executive Officer of National Western Life Group, Inc. (Nasdaq: NWLI), announced today next quarter 2020 consolidated net earnings of $48.4 million, or $13.69 per diluted Class A common share, compared with consolidated net earnings of $33.7 million, or $9.53 per diluted Class A common share, for the second quarter of 2019. For the six months ended June 30, 2020, the business reported consolidated net earnings of $46.4 million, or $13.11 per diluted Class A common share, in comparison with $73.9 million, or $20.90 per diluted Class A common share, a year ago. The organization’s publication value per share as of June 30, 2020 has been $600.31.
Total earnings rose from the second quarter of 2020 to $216.0 million in $192.7 million from the next quarter of 2019 representing retrieval of a part of the investment advantage unrealized losses that occurred during the first quarter of 2020. Net realized and unrealized gains on investments and index choices were $43.4 million from the next quarter of 2020 when compared with net realized and unrealized losses of $103.1 million from the first quarter. Mr. Moody discovered, “We had been optimistic that the industry disruption resulting from this COVID-19 pandemic upon the very first quarter results are a temporary aberration and our second quarter results confirmed that prognosis to a particular level. I’m very proud of how fast our administration teams adapted to the situation and put our employees in a position to continue business operations without interruption.” The business declared that life insurance earnings increased 10% in the first half of 2020 over the same time frame last year while annuity sales increased 26% over the same period.
Consolidated net earnings in the quarter ended June 30, 2020 increased 44% from the amount reported in the second quarter of 2019, elevating the Company’s book value per share over $600 for the first time. Mr. Moody commented on the results saying, “Our emphasis on creating a solid financial foundation is validated during challenging times and allows us to take on obstacles like the pandemic and continue forward in executing our strategic initiatives.” Mr. Moody noted that the second quarter results included consolidated life insurance claims of $1.1 million due to COVID-19. “Claim experience thus far has been well within our pricing assumptions as we continue to monitor and track this activity,” he added.
National Western Life Group, Inc. is the parent organization National Western Life Insurance Company, which is precisely 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 June 30, 2020, precisely the Company maintained consolidated total assets of $12.4 billion, consolidated stockholders’ equity of $2.2 billion, and combined life insurance inforce of $22.5 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 by those contemplated in these forward-looking statements can be found in the organization’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 about any forward-looking statements made by us or on our behalf.
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Summary of Consolidated Financial Results (Unaudited) |
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(In thousands except per share data) |
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Three Months Ended |
Six Months Ended |
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June 30, |
June 30, |
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2020 |
2019 |
2020 |
2019 |
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Revenues: |
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Revenues, excluding investment and index option |
$ |
172,647 |
175,282 |
328,278 |
346,560 |
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gains (losses) |
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Realized and unrealized gains (losses) on index options |
40,243 |
17,828 |
(66,385) |
59,830 |
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Realized gains (losses) on investments |
3,125 |
(425) |
6,610 |
4,204 |
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Total revenues |
216,015 |
192,685 |
268,503 |
410,594 |
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Benefits and expenses: |
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Life and other policy benefits |
33,431 |
33,657 |
67,065 |
61,846 |
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Amortization of deferred acquisition costs and |
31,100 |
31,411 |
61,137 |
63,575 |
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value of business acquired |
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Universal life and annuity contract interest |
61,772 |
60,139 |
33,746 |
141,055 |
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Other operating expenses |
29,154 |
25,334 |
48,976 |
51,383 |
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Total benefits and expenses |
155,457 |
150,541 |
210,924 |
317,859 |
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Earnings before income taxes |
60,558 |
42,144 |
57,579 |
92,735 |
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Income tax expense |
12,145 |
8,448 |
11,228 |
18,841 |
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Net earnings |
$ |
48,413 |
33,696 |
46,351 |
73,894 |
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Net earnings attributable to Class A shares |
$ |
47,044 |
32,743 |
45,040 |
71,804 |
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Diluted Earnings Per Class A Share |
$ |
13.69 |
9.53 |
13.11 |
20.90 |
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Diluted Weighted Average Class A Shares |
3,436 |
3,436 |
3,436 |
3,436 |
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June 30, |
December 31, |
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2020 |
2019 |
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Book value per share |
$ |
600.31 |
585.32 |
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Less: Per share impact of accumulated other comprehensive income (loss) |
22.85 |
16.53 |
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Book value per share, excluding accumulated other comprehensive income (loss) * |
$ |
577.46 |
568.79 |
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* |
Book value per share excluding accumulated other comprehensive income (loss) is a non-GAAP fiscal measure. Accumulated other comprehensive income (loss) totaled $83.1 million at June 30, 2020 and $60.1 million at December 31, 2019. Since accumulated other comprehensive income (loss) fluctuates from quarter to quarter due to unrealized changes in the fair value investments caused primarily by changes in market interest rates, National Western Life Group, Inc. believes this financial measure provides useful supplemental information. |
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Investor Relations Contact:
Brian M. Pribyl – Senior Vice President, Chief Financial Officer and also Treasurer
(512) 836-1010
[email protected]
www.nwlgi.com
SOURCE National Western Life Group, Inc.
Related Links
http://www.nwlgi.com
