AUSTIN, TX, November 9, 2022 /PRNewswire/ — Ross R. MoodyChairman, President and Chief Executive Officer of National Western Life Group, Inc. (Nasdaq: NWLI), today announced consolidated net income for the third quarter of 2022 of $21.8 millionWhere $6.15 per diluted Class A common share, compared to consolidated net income of $39.8 millionWhere $11.27 per diluted Class A common share, for the third quarter of 2021. For the nine months ended September 30, 2022the Company reported consolidated net income of $88.7 millionWhere $25.09 per diluted Class A common share, compared to $151.9 millionWhere $42.95 per diluted Class A common share, one year ago. The book value per share of the Company at September 30, 2022 has been $532.84.

In the quarter ended September 30, 2022the Company reported a pre-tax profit of $27.9 million representing a $22.3 million down from reported pre-tax earnings in the third quarter of 2021. Commenting on the results, Moody noted that the discrepancy was due to the Company’s practice of updating actuarial assumptions annually in the third quarter of the year. year. “For financial reporting purposes, life insurance companies are required to periodically update policy performance assumptions with actual experience for factors such as mortality, policy persistence, withdrawal activity, expenses and investment performance. We do this exercise every year in the third quarter, and last year’s result resulted in a positive pre-tax adjustment of $23.1 million, which was higher than what we typically report. This year’s positive adjustment to the pre-tax profit of $1.2 million was more consistent with updates to past assumptions,” Moody said.

Investment results reflect the impact of market conditions, including rising interest rates. For the quarter and nine months ended September 30, 2022reported net investment income was $79.5 million and $204.7 millionrespectively, compared to $89.0 million and $411.6 million for comparable periods in 2021. Mr. Moody observed: “The US 10-year Treasury bill rate has risen more than 230 basis points since the start of the year and more than 80 basis points during of the third trimester alone. Interest rate increases serve to reduce market values ​​of fixed income securities. As a result, as other insurance companies have reported, the market value of our debt securities portfolio has declined $425.0 million in the third trimester and $1.6 billion year to date. Most of these unrealized losses are recorded directly in equity, but some pass through the income statement, reducing reported net investment income. In addition, negative equity market performance during these periods similarly causes the market value of our index options to incur unrealized market losses, further reducing reported net investment income. However, since we generally hold both our debt securities investments and our index options until their expiration dates, these unrealized losses will eventually reverse and reverse in future reporting periods. .”

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, two stock life insurance companies offering a broad portfolio of life insurance universal, whole life and individual term. insurance plans as well as annuity products. To September 30, 2022the Company has maintained total consolidated assets of $13.2 billionconsolidated equity of $1.9 billionand combined life insurance in force $20.0 billion.

Caution Regarding Forward-Looking Statements:
This press release contains statements that are or may be deemed to be 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 could 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 on which they are 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 completed

Nine month period ended

September 30,

September 30,

2022

2021

2022

2021

Income:

Income, excluding gains (losses) on investments and index options

$

155,678

147,586

478 197

527 108

Realized and unrealized gains (losses) on index options

(12,550)

2,284

(89,173)

70,474

Capital gains realized on investments

745

5,011

6,305

9,842

Total revenue

143,873

154,881

395 329

607 424

Benefits and Expenses:

Life insurance and other benefits

37,356

70,633

114,432

144,426

Amortization of deferred transaction costs

31,679

(8,389)

88,451

46,723

Interest from universal life insurance and annuity contracts

17,548

11,663

(11,058)

134,481

Other operating expenses

29,387

30,793

92,290

90,596

Total Benefits and Expenses

115,970

104,700

284 115

416 226

Profit before income taxes

27,903

50 181

111 214

191 198

income tax expense

6,142

10,341

22,504

39,329

net profit

$

21,761

39,840

88,710

151,869

Net income attributable to Class A shares

$

21,146

38,713

86 201

147,574

Diluted earnings per Class A share

$

6.15

11.27

25.09

42.95

Diluted Weighted Average Class A Shares

3,436

3,436

3,436

3,436

September 30,

The 31st of December,

2022

2021

Book value per share

$

532.84

698.48

Less: Impact per share of accumulated other comprehensive income

(130.65)

59.39

Book value per share, excluding accumulated other comprehensive income*

$

663.49

639.09

*

Book value per share excluding accumulated other comprehensive income is a non-GAAP financial measure. Accumulated other
comprehensive income totaled ($475.0) million as of September 30, 2022 and $216.0 million as of December 31, 2021. Since
other comprehensive income 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 supplements
information.

Contact with Investor Relations:
Brian M. Pribyl – Senior Vice President, Chief Financial Officer and Treasurer
(512) 836-1010
[email protected]
www.nwlgi.com

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SOURCE National Western Life Group, Inc.

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