U.S. markets closed
  • S&P 500

    4,136.48
    -43.28 (-1.04%)
     
  • Dow 30

    33,926.01
    -127.93 (-0.38%)
     
  • Nasdaq

    12,006.96
    -193.86 (-1.59%)
     
  • Russell 2000

    1,985.53
    -15.69 (-0.78%)
     
  • Crude Oil

    73.23
    -2.65 (-3.49%)
     
  • Gold

    1,877.70
    -53.10 (-2.75%)
     
  • Silver

    22.40
    -1.22 (-5.17%)
     
  • EUR/USD

    1.0798
    -0.0113 (-1.04%)
     
  • 10-Yr Bond

    3.5320
    +0.1360 (+4.00%)
     
  • GBP/USD

    1.2056
    -0.0173 (-1.41%)
     
  • USD/JPY

    131.1500
    +2.5460 (+1.98%)
     
  • BTC-USD

    23,418.25
    -219.23 (-0.93%)
     
  • CMC Crypto 200

    535.42
    -1.43 (-0.27%)
     
  • FTSE 100

    7,901.80
    +81.64 (+1.04%)
     
  • Nikkei 225

    27,509.46
    +107.41 (+0.39%)
     

National Western Life Group, Inc. Announces 2022 Second Quarter Earnings

AUSTIN, Texas, Aug. 8, 2022 /PRNewswire/ -- Ross R. Moody, Chairman of the Board, President, and Chief Executive Officer of National Western Life Group, Inc. (Nasdaq: NWLI), announced today second quarter 2022 consolidated net earnings of $30.8 million, or $8.70 per diluted Class A common share, compared with consolidated net earnings of $49.9 million, or $14.11 per diluted Class A common share, for the second quarter of 2021. For the six months ended June 30, 2022, the Company reported consolidated net earnings of $66.9 million, or $18.93 per diluted Class A common share, compared with $112.0 million, or $31.68 per diluted Class A common share, a year ago. The Company's book value per share as of June 30, 2022 was $576.33.

The Company reported total revenues of $117.2 million in the quarter ended June 30, 2022 compared to $222.2 million in the second quarter of 2021. The decline is almost entirely due to fair market value accounting adjustments from investments, including embedded derivatives. These revenue adjustments totaled a downward amount of $(32.5) million in the second quarter of 2022 versus a positive adjustment of $68.3 million in the second quarter of 2021. Mr. Moody observed, "The fair market value adjustments are indicative of current macroeconomic conditions, namely the relatively rapid rise in interest rate levels in conjunction with declines in the equity markets." Mr. Moody added that the Company's investment philosophy of holding debt securities until maturity mitigates concerns associated with interim market value fluctuations.

The Company's net earnings continued to benefit from overall improvement in claim experience over the prior year. Claims reported for which the cause of death was COVID-19 were $1.9 million and $5.7 million in the three and six months ended June 30, 2022, respectively, compared to $8.7 million and $15.4 million in the comparable periods for 2021. Mr. Moody noted, "Reported COVID-19 deaths peaked in the third quarter of last year and have exhibited a downward trend since then. While anecdotal reports suggest non-COVID deaths are up due to tangential effects of the pandemic, our overall mortality experience is in line with our expectations."

Excluding adjustments for fair market value changes recorded directly in stockholders' equity, the Company's "core" book value increased to $657.50 at June 30, 2022 from $639.09 at December 31, 2021. Mr. Moody commented, "We believe the more useful book value metric excludes the effects of temporary swings from market value adjustments. The Company's stockholders' equity included an unrealized gain position on debt securities of $226.2 million at December 31, 2021, which moved to an unrealized loss position of $(287.4) million at June 30, 2022 for the same category of debt securities."

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 June 30, 2022, the Company maintained consolidated total assets of $13.3 billion, consolidated stockholders' equity of $2.1 billion, and combined life insurance in force of $20.3 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


Six Months Ended



June 30,


June 30,



2022


2021


2022


2021

Revenues:









Revenues, excluding investment and index option
gains (losses)

$

153,816


178,584


322,519


379,522

Realized and unrealized gains (losses) on index
options


(38,425)


40,166


(76,623)


68,190

Realized gains on investments


1,766


3,415


5,560


4,831

Total revenues


117,157


222,165


251,456


452,543










Benefits and expenses:









Life and other policy benefits


35,177


35,904


77,076


73,793

Amortization of deferred transaction costs


27,756


25,123


56,772


55,112

Universal life and annuity contract interest


(13,801)


69,973


(28,606)


122,818

Other operating expenses


30,321


28,468


62,903


59,803

Total benefits and expenses


79,453


159,468


168,145


311,526










Earnings before income taxes


37,704


62,697


83,311


141,017

Income tax expense


6,939


12,798


16,362


28,989

Net earnings

$

30,765


49,899


66,949


112,028










Net earnings attributable to Class A shares

$

29,895


48,488


65,056


108,860










Diluted Earnings Per Class A Share

$

8.70


14.11


18.93


31.68










Diluted Weighted Average Class A Shares


3,436


3,436


3,436


3,436
















June 30.


December 31,







2022


2021










Book value per share





$

576.33


698.48

Less: Per share impact of accumulated other
comprehensive income (loss)






(81.17)


59.39

Book value per share, excluding accumulated
other comprehensive income (loss) *





$

657.50


639.09


*

Book value per share excluding accumulated other comprehensive income (loss) is a non-GAAP financial measure. Accumulated other comprehensive income (loss) totaled $(295.1) million at June 30, 2022 and $216.0 million at December 31, 2021. Since accumulated other comprehensive income (loss) 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@nwlic.com
www.nwlgi.com

Cision
Cision

View original content to download multimedia:https://www.prnewswire.com/news-releases/national-western-life-group-inc-announces-2022-second-quarter-earnings-301601815.html

SOURCE National Western Life Group, Inc.