PR Newswire | Aug 7, 2020 01:00PM EDT

08/07 12:00 CDT

National Western Life Group, Inc. Announces 2020 Second Quarter Earnings AUSTIN, Texas, Aug. 7, 2020

AUSTIN, Texas, Aug. 7, 2020 /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 2020 consolidated net earnings of $48.4 million, or $13.69 per diluted Class A common share, compared with consolidated net earnings of $33.7 million, or $9.53 per diluted Class A common share, for the second quarter of 2019. For the six months ended June 30, 2020, the Company reported consolidated net earnings of $46.4 million, or $13.11 per diluted Class A common share, compared with $73.9 million, or $20.90 per diluted Class A common share, a year ago. The Company's book value per share as of June 30, 2020 was $600.31.

Total revenues increased in the second quarter of 2020 to $216.0 million from $192.7 million in the second quarter of 2019 reflecting recovery of a portion of the investment asset unrealized losses which occurred during the first quarter of 2020. Net realized and unrealized gains on investments and index options were $43.4 million in the second quarter of 2020 compared to net realized and unrealized losses of $103.1 million in the first quarter. Mr. Moody observed, "We were hopeful that the market disruption caused by the COVID-19 pandemic upon the first quarter results would be a temporary aberration and our second quarter results validated that outlook to a certain degree. I am extremely proud of how quickly our management teams adapted to the situation and put our staff in a position to continue business operations without interruption." The Company announced that life insurance sales increased 10% in the first half of 2020 over the same time frame last year while annuity sales increased 26% over the same period.

Consolidated net earnings in the quarter ended June 30, 2020 increased 44% from the amount reported in the second quarter of 2019, elevating the Company's book value per share over $600 for the first time. Mr. Moody commented on the results saying, "Our emphasis on creating a solid financial foundation is validated during challenging times and allows us to take on obstacles like the pandemic and continue forward in executing our strategic initiatives." Mr. Moody noted that the second quarter results included consolidated life insurance claims of $1.1 million due to COVID-19. "Claim experience thus far has been well within our pricing assumptions as we continue to monitor and track this activity," he added.

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, 2020, the Company maintained consolidated total assets of $12.4 billion, consolidated stockholders' equity of $2.2 billion, and combined life insurance inforce of $22.5 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,

2020 2019 2020 2019

Revenues:

Revenues, excluding investment $172,647 175,282 328,278 346,560 and index option

gains (losses)

Realized and unrealized gains 40,243 17,828 (66,385) 59,830 (losses) on index options

Realized gains 3,125 (425) 6,610 4,204 (losses) on investments

Total 216,015 192,685 268,503 410,594 revenues



Benefits and expenses:

Life and other policy 33,431 33,657 67,065 61,846 benefits

Amortization of deferred 31,100 31,411 61,137 63,575 acquisition costs and

value of business acquired

Universal life and annuity 61,772 60,139 33,746 141,055 contract interest

Other operating 29,154 25,334 48,976 51,383 expenses

Total benefits and 155,457 150,541 210,924 317,859 expenses



Earnings before 60,558 42,144 57,579 92,735 income taxes

Income tax 12,145 8,448 11,228 18,841 expense

Net earnings$48,413 33,696 46,351 73,894



Net earnings attributable$47,044 32,743 45,040 71,804 to Class A shares



Diluted Earnings Per$13.69 9.53 13.11 20.90 Class A Share



Diluted Weighted Average 3,436 3,436 3,436 3,436 Class A Shares



June 30, December 31,

2020 2019



Book value $600.31 585.32 per share

Less: Per share impact of accumulated other 22.85 16.53 comprehensive income (loss)

Book value per share, excluding accumulated$577.46 568.79 other comprehensive income (loss) *

Book value per share excluding accumulated other comprehensive income (loss) is a non-GAAP financial measure. Accumulated other comprehensive income (loss) totaled $83.1 million at June 30, 2020 and $60.1 million at *December 31, 2019. 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) 836-1010bpribyl@nationalwesternlife.comwww.nwlgi.com

View original content to download multimedia: http://www.prnewswire.com/news-releases/national-western-life-group-inc-announces-2020-second-quarter-earnings-301108364.html

SOURCE National Western Life Group, Inc.