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National Western Life Group, Inc. Message Board

  • batraa batraa Mar 14, 2012 5:19 PM Flag


    spoke with the company regarding Brazil.

    I came away with the view that this is not an issue..

    the worst case is that sales volumes will decrease in Brazil or go away.

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    • Thank you batras

      As always when analyzing any company I try as best as possible to discover IF there are any possibilities of things going wrong - that could/would/might mean that there is a lack of information being provided about the future of any company. And this lack of information could/would/might if negative hurt the value of the company in question

      Here is what we know and this comes only from the press. This of course means we have no way of verifying the validity of what has been reported nor the future effects.

      The press stated NWLI was fined $6 billion because they illegally sold insurance in Brazil.

      We know the company feels this is a non event and the fine can never be collected.

      We know that for what ever reason Brazil and the USA have problems in solving legal problems at least those that concern extradition of individuals accused of crimes.

      We do NOT know if these problems continue into the financial affairs of companies.(or at least I do not know)

      We do NOT know except via the press that NWLI sold insurance while not being registered with the proper authorities.

      We know from NWLI and the press that this fine will never be paid. But what we don't know is what I am looking for. And what we do not know is what is important to me because - what we don't know what lies in the potential problems for the future.

      From Batraas we know is sales from Brazil will decrease of disappear.

      From this I must assume NWLI is having problems of not being allowed to sell insurance in Brazil or NWLI choosing not to for what ever reason.

      We know NWLI has been selling insurance in many different countries because NWLI has told us this.

      We do not know If, like in Brazil, NWLI is allowed or not allowed to sell insurance in ANY of those countries. In other words has NWLI crossed the T's and dotted the I's in these other countries to comply with internal laws of those countries.

      Where they now are selling insurance or to take this to the next level.

      IS NWLI in jeopardy IF they have not complied with the rules of those other countries and if not, might not complying, are we as shareholders of NWLI in jeopardy of other new law suits resulting in fines.

      We might not be so lucky as in Brazil where the relations between those countries and the USA are such that these fines can be collected.

      In conclusion it is not what happened in Brazil that worries me but it will worry me and should you IF NWLI has been operating without a license to do so in other countries and those countries are now in the process of suing NWLI and of course what those consequences might be IF NWLI is found guilty.

      So the question arises WAS NWLI selling insurance in those countries legally or illegally (like in Brazil)

      And this we do not know and this is what worries me and should worry you as well.

      Now aremed with this as to my thoughts why don't you go back Batraas and ask the questions so we can all be assured NWLI is/was acting legally and then we only have to worry if the management will ever wake up to our existance


    • Thanks Batras.

      That is what I would have expected.

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