AUSTIN,
Texas, March 10, 2023 /PRNewswire/ --
Ross R. Moody, Chairman of the
Board, President, and Chief Executive Officer of National Western
Life Group, Inc. (Nasdaq: NWLI), announced today 2022 consolidated
net earnings of $101.1 million, or
$28.60 per diluted Class A common
share, compared with consolidated net earnings of $180.7 million, or $51.10 per diluted Class A common share, for
2021. The Company's book value per share as of December 31, 2022 was $552.04.
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For the year ended December 31,
2022, the Company reported total revenues of $558.4 million compared to $824.1 million reported in 2021. Commenting on
the results, Mr. Moody noted, "Our premiums and contract revenues
were higher in 2022 at $226.9 million
versus $224.3 million last year and
death claims and other policy benefits paid decreased to
$113.0 million from $126.5 million in 2021. As a result, our
organization experienced a better outcome from a policy performance
standpoint when measuring policy revenues in excess policy
benefits." Mr. Moody added that, similar to industry year-end
earnings released thus far, the Company's financial statements
incurred declines due to the impact of higher interest rate levels
and the negative impact higher rates impose when recording
investment balances at fair market value. "Our investment revenues
declined $219.1 million due to
unrealized losses from recording trading debt securities and equity
securities at fair market value. Despite the unrealized losses,
over 98% of our bond portfolio remains investment grade," Mr. Moody
observed.
For the three months ended December 31,
2022, the Company reported consolidated net earnings of
$12.4 million, or $3.52 per diluted Class A common share, compared
with $28.8 million, or $8.15 per diluted Class A common share, a year
ago. Mr. Moody stated, "The rise in interest rates also greatly
diminished the number of bond issuers calling their securities,
which is the primary source of our realized investment gains." Mr.
Moody further indicated that the increase in the Company's publicly
traded common share price also influenced reported earnings. "The
price per share of our stock increased 31% during 2022. This had a
significant impact on liabilities we record based upon the market
price of our stock. Pretax earnings were charged $15.2 million for the increase in these
liabilities with nearly all of the increase occurring in the fourth
quarter," according to Mr. Moody.
The Company's book value per share, excluding accumulated other
comprehensive income (loss) which includes fluctuations from
changes in fair value adjustments, grew from $639.09 at December 31,
2021 to $666.56 at
December 31, 2022. Although
considered a non-GAAP financial measure, the Company reports this
metric to eliminate volatility caused primarily by interest rate
level changes.
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 December 31,
2022, the Company maintained consolidated total assets of
$13.1 billion, consolidated
stockholders' equity of $2.0 billion,
and combined life insurance in force of $19.7 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.
Summary of
Consolidated Financial Results (Unaudited)
|
(In thousands except
per share data)
|
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
|
December 31,
|
|
December 31,
|
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
Revenues:
|
|
|
|
|
|
|
|
|
Revenues, excluding
investment and index
option gains (losses)
|
$
|
160,711
|
|
161,316
|
|
638,908
|
|
688,423
|
Realized and unrealized
gains (losses) on index
options
|
|
2,307
|
|
50,244
|
|
(86,866)
|
|
120,718
|
Realized gains on
investments
|
|
50
|
|
5,107
|
|
6,355
|
|
14,950
|
Total
revenues
|
|
163,068
|
|
216,667
|
|
558,397
|
|
824,091
|
|
|
|
|
|
|
|
|
|
Benefits and
expenses:
|
|
|
|
|
|
|
|
|
Life and other policy
benefits
|
|
45,038
|
|
43,152
|
|
159,470
|
|
187,577
|
Amortization of
deferred transaction costs
|
|
32,947
|
|
22,739
|
|
121,398
|
|
69,462
|
Universal life and
annuity contract interest
|
|
26,736
|
|
78,703
|
|
15,678
|
|
213,185
|
Other operating
expenses
|
|
43,526
|
|
36,014
|
|
135,817
|
|
126,610
|
Total benefits and
expenses
|
|
148,247
|
|
180,608
|
|
432,363
|
|
596,834
|
|
|
|
|
|
|
|
|
|
Earnings before
income taxes
|
|
14,821
|
|
36,059
|
|
126,034
|
|
227,257
|
Income tax
expense
|
|
2,387
|
|
7,247
|
|
24,890
|
|
46,576
|
Net
earnings
|
$
|
12,434
|
|
28,812
|
|
101,144
|
|
180,681
|
|
|
|
|
|
|
|
|
|
Net earnings
attributable to Class A shares
|
$
|
12,082
|
|
27,998
|
|
98,283
|
|
175,571
|
|
|
|
|
|
|
|
|
|
Diluted Earnings Per
Class A Share
|
$
|
3.52
|
|
8.15
|
|
28.60
|
|
51.10
|
|
|
|
|
|
|
|
|
|
Diluted Weighted
Average Class A Shares
|
|
3,436
|
|
3,436
|
|
3,436
|
|
3,436
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31,
|
|
December 31,
|
|
|
|
|
|
|
2022
|
|
2021
|
|
|
|
|
|
|
|
|
|
Book value per
share
|
|
|
|
|
$
|
552.04
|
|
698.48
|
Less: Per share impact
of accumulated other
comprehensive income (loss)
|
|
|
|
|
|
(114.52)
|
|
59.39
|
Book value per share,
excluding accumulated
other comprehensive income (loss) *
|
|
|
|
|
$
|
666.56
|
|
639.09
|
|
|
*
|
Book value per share
excluding accumulated other comprehensive income (loss) is a
non-GAAP financial measure. Accumulated other comprehensive income
(loss) totaled $(416.4) million at December 31, 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
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SOURCE National Western Life Group, Inc.