AUSTIN, Texas, Nov. 8, 2012 /PRNewswire/ -- Ross R. Moody, President of National Western
Life Insurance Company (Nasdaq: NWLI), announced today third
quarter 2012 consolidated net earnings of $24.3 million, or $6.88 per diluted Class A common share, compared
with consolidated net earnings of $19.3
million, or $5.45 per diluted
Class A common share, for the third quarter of 2011. For the nine
months ended September 30, 2012, the
Company reported consolidated net earnings of $67.3 million, or $19.04 per diluted Class A common share, compared
with $51.3 million, or $14.49 per diluted Class A common share, a year
ago. The Company's book value per share increased to $376.47 as of September
30, 2012 from $366.27 at
June 30, 2012.
Operating revenues, excluding realized gains on investments and
realized and unrealized gains (losses) on index options, increased
to $153.7 million for the quarter
ended September 30, 2012, compared to
$150.9 million reported in the third
quarter of 2011. For the first nine months of 2012, adjusted
operating revenues of $464.8 million
represented an increase in excess of 4% versus the comparable
period in 2011. Mr. Moody noted that growing revenues in the
current economic climate was a challenge. "There is a high degree
of uncertainty among consumers right now given lingering high
unemployment, ongoing economic contraction in Europe and the imminent 'fiscal cliff'
scenario created by Congress. Consequently, we take great
satisfaction in the fact that, compared to a year ago at this time,
the amount of life insurance we have in force has increased to
$21.3 billion from $20.5 billion and the number of active annuity
contracts has risen to 141,000 from 138,000. Steadily growing our
blocks of business will help fuel revenue and profit growth going
forward."
The Company reported earnings from operations, excluding net
realized gains and losses on investments, of $62.0 million for the nine months ended
September 30, 2012, or $17.55 per diluted Class A common share, compared
to $47.0 million, or $13.29 per diluted Class A common share, in the
same period for 2011 representing an increase of 32%. Commenting on
the financial performance of the Company, Mr. Moody observed, "We
are hopeful that our operating results thus far will translate into
a solid finish to the 2012 fiscal year. Our amortization of
deferred acquisition costs has been in line with or better than our
actuarial assumptions creating a bottom line benefit to our
operating earnings. Likewise, our investment portfolio impairments
have been miniscule this year as evidenced by the net realized
gains we have been reporting each quarter. In this low interest
rate environment, we continue to actively manage our investment
spreads based upon the yields we are able to obtain within the
framework of our investment guidelines."
Founded in 1956, National Western Life 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 countries in Central
and South America, the
Caribbean, Eastern Europe, Asia, and the Pacific Rim. The Company has approximately 283
employees and 16,900 contracted independent agents, brokers, and
consultants, and at September 30,
2012, maintained total assets of $10.2 billion, stockholders' equity of
$1.4 billion, and life insurance in
force of $21.3 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 Operating
Results
(In
thousands except per share data)
|
|
Three
Months Ended
|
|
|
Nine
Months Ended
|
|
|
September
30,
|
|
|
September
30,
|
|
|
2012
|
|
2011
|
|
2012
|
|
2011
|
Revenues:
|
|
|
|
|
|
|
|
Revenues,
excluding investment and index option gains (losses)
|
153,676
|
|
|
150,940
|
|
|
464,816
|
|
|
445,125
|
|
Realized
and unrealized gains (losses) on index options
|
32,369
|
|
|
(61,524)
|
|
|
42,328
|
|
|
(38,773)
|
|
Realized
gains on investments
|
4,940
|
|
|
2,938
|
|
|
8,112
|
|
|
6,520
|
|
Total
revenues
|
190,985
|
|
|
92,354
|
|
|
515,256
|
|
|
412,872
|
|
|
|
|
|
|
|
|
|
Earnings:
|
|
|
|
|
|
|
|
Earnings
from operations
|
21,111
|
|
|
17,355
|
|
|
62,036
|
|
|
47,027
|
|
Net
realized gains on investments
|
3,211
|
|
|
1,910
|
|
|
5,273
|
|
|
4,238
|
|
Net
earnings
|
24,322
|
|
|
19,265
|
|
|
67,309
|
|
|
51,265
|
|
|
|
|
|
|
|
|
|
Net
earnings attributable to Class A shares
|
23,634
|
|
|
18,720
|
|
|
65,405
|
|
|
49,815
|
|
|
|
|
|
|
|
|
|
Basic Earnings Per Class A
Share:
|
|
|
|
|
|
|
|
Earnings
from operations
|
5.97
|
|
|
4.91
|
|
|
17.55
|
|
|
13.31
|
|
Net
realized gains on investments
|
0.91
|
|
|
0.54
|
|
|
1.49
|
|
|
1.20
|
|
Net
earnings
|
6.88
|
|
|
5.45
|
|
|
19.04
|
|
|
14.51
|
|
|
|
|
|
|
|
|
|
Basic
Weighted Average Class A Shares
|
3,435
|
|
|
3,435
|
|
|
3,435
|
|
|
3,433
|
|
|
|
|
|
|
|
|
|
Diluted Earnings Per Class A
Share:
|
|
|
|
|
|
|
|
Earnings
from operations
|
5.97
|
|
|
4.91
|
|
|
17.55
|
|
|
13.29
|
|
Net
realized gains on investments
|
0.91
|
|
|
0.54
|
|
|
1.49
|
|
|
1.20
|
|
Net
earnings
|
6.88
|
|
|
5.45
|
|
|
19.04
|
|
|
14.49
|
|
|
|
|
|
|
|
|
|
Diluted
Weighted Average Class A Shares
|
3,435
|
|
|
3,436
|
|
|
3,435
|
|
|
3,437
|
|
Investor Relations Contact:
Brian M. Pribyl - Senior Vice President, Chief
Financial Officer and Treasurer
(512) 836-1010
bpribyl@nationalwesternlife.com
www.nationalwesternlife.com
SOURCE National Western Life Insurance Company