National Western Life Group Inc Reports Strong Earnings Growth in Q3 2023
Q3 2023 consolidated net earnings soared to $64.7 million, a significant increase from $35.2 million in Q3 2022.
Diluted earnings per Class A share nearly doubled to $18.30, up from $9.95 in the same quarter last year.
Book value per share rose to $617.16 as of September 30, 2023, from $602.56 at the end of 2022.
Positive adjustments and a realized gain on long-term investment asset bolstered pretax earnings.
On November 8, 2023, National Western Life Group Inc (NASDAQ:NWLI) announced its earnings for the third quarter of 2023, showcasing a robust increase in consolidated net earnings to $64.7 million, or $18.30 per diluted share of Class A Common Stock. This performance marks a substantial improvement from the restated consolidated net earnings of $35.2 million, or $9.95 per diluted share, reported for the same period in the previous year. The company's financial strength is further evidenced by the increase in book value per share to $617.16 as of September 30, 2023.
Financial Performance Overview
National Western Life Group Inc's pretax earnings for the quarter ended September 30, 2023, were $98.9 million, which includes a $25.7 million realized gain from the sale of a long-term investment asset. Additionally, a $19.4 million positive earnings adjustment to its fixed-index annuity product liabilities was recognized following the company's annual review of actuarial assumptions. These figures compare favorably to the pretax earnings of $44.9 million reported in the third quarter of 2022.
Revenue and Expenses Analysis
Revenues for the third quarter of 2023 totaled $156.7 million, with realized gains on investments contributing $25.9 million. This is in contrast to the total revenues of $142.2 million in the same quarter of the previous year, which included only $745 thousand in realized gains on investments. The company's total benefits and expenses were $57.8 million for the quarter, a decrease from $97.3 million in Q3 2022, largely due to a $29.4 million benefit from decreases in the Market Risks Benefits liability under the new LDTI accounting standard.
Balance Sheet and Shareholder Equity
As of September 30, 2023, National Western Life Group Inc maintained consolidated total assets of $12.1 billion and consolidated stockholders' equity of $2.2 billion. The company's combined life insurance in force stood at $18.5 billion, indicating the scale and reach of its insurance operations.
Future Outlook Amidst Acquisition Agreement
Ross R. Moody, Chairman of the Board, President, and CEO, commented on the company's future, stating,
In addition to reporting our financial results, it has been a very active and productive period for the Company as evidenced by our October 8th agreement to join Prosperity Life Group's organization through acquisition."
He expressed optimism about the merger, expected to be finalized in the first half of 2024, and the potential synergies with Prosperity Life Group's platform.
While National Western Life Group Inc's earnings report is strong, it is important for investors to consider the various factors that may affect the company's future performance, including the completion of the proposed merger with Prosperity Life Group and the potential impacts of regulatory approvals and business integration.
For more detailed information and analysis on National Western Life Group Inc's financial performance, investors are encouraged to visit GuruFocus.com.
Note: The financial figures included in this summary are based on unaudited financial results.
Explore the complete 8-K earnings release (here) from National Western Life Group Inc for further details.
This article first appeared on GuruFocus.
