AUSTIN, Texas, May 5, 2016 /PRNewswire/ -- Ross R. Moody, President and Chief Executive
Officer of National Western Life Group, Inc. (Nasdaq: NWLI),
announced today first quarter 2016 consolidated net earnings of
$17.3 million, or $4.88 per diluted Class A common share, compared
with consolidated net earnings of $21.3
million, or $6.03 per diluted
Class A common share, for the first quarter of 2015. The Company's
book value per share increased to $454.67 as of March 31,
2016 from $443.32 at
December 31, 2015.
The Company reported revenues from operations, excluding net
realized and unrealized gains and losses on investments and index
options, of $159.5 million for the
quarter ended March 31, 2016, an
increase of 3% over the same period for 2015. Mr. Moody commented
on the Company's revenue growth saying, "There is clearly a great
deal of uncertainty in the financial markets which may be
manifested through increased levels of volatility. The timing and
the future direction the Federal Reserve may take on interest rates
adds to the level of uncertainty. This backdrop is a challenging
one for the life insurance industry and, in this context, tests our
ability to generate growth." Mr. Moody further noted that the U.S.
Department of Labor's final fiduciary regulation adopted in early
April presents additional obstacles for financial service
providers. "There are concerns that individuals will receive less
financial help in a time when they are increasingly tasked with the
responsibility of planning for their financial futures and
retirements. National Western's fixed-index annuities have proved
to be a valuable tool in the financial portfolios of today's
families and we will endeavor to work with the industry and our
distribution partners to provide workable business models." The
Company's fixed-index annuity sales increased to $156.8 million in the first quarter of 2016 from
$154.5 million in 2015.
Earnings from operations, excluding net realized gains and
losses on investments, declined to $15.7
million for the quarter ended March
31, 2016, or $4.44 per diluted
Class A common share, from $20.7
million, or $5.85 per diluted
Class A common share, in the same period for 2015. Mr. Moody
commented on the earnings saying, "The insurance business is one of
the most litigious industries around and our first quarter results
included a $2.9 million charge for a
judgment against the Company in a situation where we paid out the
contractual benefit in accordance with the contract terms. While we
fully intend to appeal this decision, it is indicative of the costs
we encounter in providing products to our customers." Mr. Moody
added that, excluding this charge, the Company's operating expenses
for the quarter were lower than those incurred in the first quarter
of 2015.
National Western Life Group, Inc. is the parent organization of
National Western Life Insurance Company (NWLIC). Founded in 1956,
NWLIC 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
international countries. National Western has 266 employees and
approximately 24,300 contracted independent agents, brokers, and
consultants. At March 31, 2016, the
Company maintained total consolidated assets of $11.7 billion, stockholders' equity of
$1.7 billion, and life insurance in
force of $21.7 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.
National Western Life Group, Inc.
(Formerly
National Western Life Insurance Company and Subsidiaries)
|
|
Summary of
Consolidated Operating Results (Unaudited)
(In thousands
except per share data)
|
|
|
|
|
|
Three Months
Ended
|
|
March 31,
|
|
2016
|
|
2015
|
Revenues:
|
|
|
|
Revenues, excluding
investment and index option gains (losses)
|
159,462
|
|
|
155,198
|
|
Realized and
unrealized gains (losses) on index options
|
(12,901)
|
|
|
(8,287)
|
|
Realized gains on
investments
|
2,381
|
|
|
979
|
|
Total
revenues
|
148,942
|
|
|
147,890
|
|
|
|
|
|
Earnings:
|
|
|
|
Earnings from
operations
|
15,712
|
|
|
20,690
|
|
Net realized gains on
investments
|
1,547
|
|
|
636
|
|
Net
earnings
|
17,259
|
|
|
21,326
|
|
|
|
|
|
Net earnings
attributable to Class A shares
|
16,771
|
|
|
20,723
|
|
|
|
|
|
Basic Earnings
Per Class A Share:
|
|
|
|
Earnings from
operations
|
4.44
|
|
|
5.85
|
|
Net realized gains on
investments
|
0.44
|
|
|
0.18
|
|
Net
earnings
|
4.88
|
|
|
6.03
|
|
|
|
|
|
Basic Weighted
Average Class A Shares
|
3,436
|
|
|
3,436
|
|
|
|
|
|
Diluted
Earnings Per Class A Share:
|
|
|
|
Earnings from
operations
|
4.44
|
|
|
5.85
|
|
Net realized gains on
investments
|
0.44
|
|
|
0.18
|
|
Net
earnings
|
4.88
|
|
|
6.03
|
|
|
|
|
|
Diluted Weighted
Average Class A Shares
|
3,437
|
|
|
3,438
|
|
Investor Relations Contact:
Brian M. Pribyl - Senior Vice President, Chief
Financial Officer and Treasurer
(512) 836-1010
bpribyl@nationalwesternlife.com
www.nwlgi.com
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SOURCE National Western Life Group, Inc.