AUSTIN, Texas, Nov. 6, 2014 /PRNewswire/ -- Ross R. Moody,
President of National Western Life Insurance Company (Nasdaq:
NWLI), announced today third quarter 2014 consolidated net earnings
of $28.5 million, or $8.05 per diluted Class A common share, compared
with consolidated net earnings of $24.8
million, or $7.00 per diluted
Class A common share, for the third quarter of 2013. For the
nine months ended September 30, 2014,
the Company reported consolidated net earnings of $77.5 million, or $21.91 per diluted Class A common share, compared
with $68.4 million, or $19.32 per diluted Class A common shares, a year
ago. The Company's book value per share increased to
$421.91 as of September 30, 2014 from $416.89 at June 30,
2014.
The Company reported earnings from operations, excluding net
realized gains and losses on investments, of $27.1 million for the three months ended
September 30, 2014, or $7.65 per diluted Class A common share, compared
to $22.6 million, or $6.40 per diluted Class A common share, in the
same period for 2013. Mr. Moody commented on the earnings results
saying, "The profitability levers of our business continue to
perform well. The third quarter results benefited from favorable
mortality experience as well as our emphasis on managing operating
expenses commensurate with business levels." Earnings from
operations for the nine months ended September 30, 2014 increased 15% over the
comparable prior year period. Mr. Moody observed that the Company's
increased profitability was achieved despite continuing market
challenges. "As most are aware, the interest rate environment has
not been very conducive for some time in obtaining higher yields on
credit instruments such as the investment grade corporate bonds we
purchase to support our policy obligations. Our commitment to
credit quality, prudent diversification, and careful matching of
asset durations with policyholder liabilities is a discipline we
dedicate ourselves to in maintaining National Western's reputation
for financial soundness and stability," Mr. Moody indicated.
Insurance revenues for the quarter ended September 30, 2014 increased to $154.0 million compared to $149.3 million in the third quarter of 2013. Mr.
Moody noted, "We are pleased with our growth as this year has been
a challenging one for the life insurance industry. The tepid
economic recovery has not generated meaningful gains in consumer
personal income thus muting the demand for life insurance products.
The Company's portfolio of life and annuity products with
equity-index crediting mechanisms continue to stand out in this
environment as the driver of new product sales and additions to our
level of business in force from which we generate insurance
revenues."
Founded in 1956, National Western Life 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 countries in Central
and South America, the
Caribbean, Eastern Europe, Asia, and the Pacific Rim. The Company has approximately 270
employees and 20,100 contracted independent agents, brokers, and
consultants, and at September 30,
2014, maintained total assets of $11.3 billion, stockholders' equity of
$1.5 billion, and life insurance in
force of $22.7 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
|
|
Nine Months
Ended
|
|
September
30,
|
|
September
30,
|
|
2014
|
|
|
2013
|
|
|
2014
|
|
|
2013
|
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
Revenues, excluding
investment and index option gains
|
153,973
|
|
|
149,292
|
|
|
468,440
|
|
|
468,145
|
|
Realized and
unrealized gains on index options
|
3,479
|
|
|
35,615
|
|
|
49,278
|
|
|
126,739
|
|
Realized gains on
investments
|
2,169
|
|
|
3,285
|
|
|
6,747
|
|
|
7,199
|
|
Total
revenues
|
159,621
|
|
|
188,192
|
|
|
524,465
|
|
|
602,083
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings:
|
|
|
|
|
|
|
|
|
|
|
|
Earnings from
operations
|
27,056
|
|
|
22,646
|
|
|
73,089
|
|
|
63,725
|
|
Net realized gains on
investments
|
1,410
|
|
|
2,136
|
|
|
4,386
|
|
|
4,680
|
|
Net
earnings
|
28,466
|
|
|
24,782
|
|
|
77,475
|
|
|
68,405
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings
attributable to Class A shares
|
27,661
|
|
|
24,081
|
|
|
75,284
|
|
|
66,470
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic Earnings
Per Class A Share:
|
|
|
|
|
|
|
|
|
|
|
|
Earnings from
operations
|
7.65
|
|
|
6.41
|
|
|
20.68
|
|
|
18.03
|
|
Net realized gains on
investments
|
0.40
|
|
|
0.60
|
|
|
1.24
|
|
|
1.32
|
|
Net
earnings
|
8.05
|
|
|
7.01
|
|
|
21.92
|
|
|
19.35
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic Weighted
Average Class A Shares
|
3,436
|
|
|
3,435
|
|
|
3,435
|
|
|
3,435
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
Earnings Per Class A Share:
|
|
|
|
|
|
|
|
|
|
|
|
Earnings from
operations
|
7.65
|
|
|
6.40
|
|
|
20.67
|
|
|
18.00
|
|
Net realized gains on
investments
|
0.40
|
|
|
0.60
|
|
|
1.24
|
|
|
1.32
|
|
Net
earnings
|
8.05
|
|
|
7.00
|
|
|
21.91
|
|
|
19.32
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted Weighted
Average Class A Shares
|
3,438
|
|
|
3,439
|
|
|
3,437
|
|
|
3,440
|
|
Investor Relations Contact:
Brian M. Pribyl - Senior Vice President, Chief
Financial Officer and Treasurer
(512) 836-1010
bpribyl@nationalwesternlife.com
www.nationalwesternlife.com
SOURCE National Western Life Insurance Company