National Western Life Group, Inc. Announces 2021 Second Quarter Earnings

Rhea-AI Summary

National Western Life Group, Inc. (NWLI) reported second quarter 2021 net earnings of $49.9 million ($14.11 per diluted share), up from $48.4 million ($13.69 per share) year-over-year. For the first six months, net earnings reached $112.0 million ($31.68 per share), compared to $46.4 million ($13.11 per share) in 2020. Total revenues, excluding gains, grew to $178.6 million in Q2 2021, from $172.6 million in Q2 2020. Life insurance and annuity sales surged 43% and 49% respectively. The book value per share stood at $698.52.

Positive

• Net earnings increased 142% YoY for first six months, reaching $112.0 million.
• Life insurance sales rose 43% and annuity sales increased 49% compared to Q2 2020.
• Successful implementation of risk management initiatives leading to stabilized cash flows.

Negative

• None.

AUSTIN, Texas, Aug. 6, 2021 /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 2021 consolidated net earnings of $49.9 million, or $14.11 per diluted Class A common share, compared with consolidated net earnings of $48.4 million, or $13.69 per diluted Class A common share, for the second quarter of 2020. For the six months ended June 30, 2021, the Company reported consolidated net earnings of $112.0 million, or $31.68 per diluted Class A common share, compared with $46.4 million, or $13.11 per diluted Class A common share, a year ago. The Company's book value per share as of June 30, 2021 was $698.52.

The Company reported total revenues, excluding realized and unrealized gains on index options and investments, of $178.6 million in the quarter ended June 30, 2021 compared to $172.6 million in the second quarter of 2020, and $379.5 million in the six months ended June 30, 2021 versus $328.3 million in the comparable period in 2020. Commenting on the Company's revenues, Mr. Moody pointed to successful sales results in combination with benefits realized from risk management initiatives as factors producing favorable results: "We continue to see recovery from 2020 sales levels which were negatively impacted by the COVID-19 pandemic and are now, in fact, achieving sales results that surpass our pre-pandemic sales amounts. Life insurance sales were up 43% in the second quarter over last year, including the sales results of Ozark National whose reliance on a face-to-face sales model significantly hampered their production in 2020. Annuity sales increased 49% in the second quarter compared to 2020, and we are excited about new product launches scheduled for the third quarter that were delayed by the challenges which came with the pandemic." Mr. Moody added, "Our risk management processes lead to the funds withheld reinsurance transaction executed at the end of last year. It has accomplished precisely what we were targeting, namely stabilization of our cash flows and relief from compressed interest rate margins on legacy blocks of fixed rate annuity business."

The Company's net earnings for the first six months increased 142% over the net earnings reported in the first six months of 2020. Mr. Moody observed, "In addition to sales growth and the strategic use of reinsurance, we are beginning to see traction in various investment initiatives undertaken in the past year. Net investment income has benefited from incremental yield with the introduction of a disciplined alternative investment strategy and expanded commercial mortgage lending, and we have successfully reduced index option costs used to hedge our fixed-index life and annuity products." 

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, 2021, the Company maintained consolidated total assets of $14.5 billion, consolidated stockholders' equity of $2.5 billion, and combined life insurance in force of $21.4 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,
		2021			2020			2021			2020
Revenues:
Revenues, excluding investment and index option	$	178,584			172,647			379,522			328,278
gains (losses)
Realized and unrealized gains (losses) on index options		40,166			40,243			68,190			(66,385)
Realized gains on investments		3,415			3,125			4,831			6,610
Total revenues		222,165			216,015			452,543			268,503
Benefits and expenses:
Life and other policy benefits		35,904			33,431			73,793			67,065
Amortization of deferred transaction costs		25,123			31,100			55,112			61,137
Universal life and annuity contract interest		69,973			61,772			122,818			33,746
Other operating expenses		28,468			29,154			59,803			48,976
Total benefits and expenses		159,468			155,457			311,526			210,924
Earnings before income taxes		62,697			60,558			141,017			57,579
Income tax expense		12,798			12,145			28,989			11,228
Net earnings	$	49,899			48,413			112,028			46,351
Net earnings attributable to Class A shares	$	48,488			47,044			108,860			45,040
Diluted Earnings Per Class A Share	$	14.11			13.69			31.68			13.11
Diluted Weighted Average Class A Shares		3,436			3,436			3,436			3,436
								June 30,			December 31,
								2021			2020
Book value per share							$	698.52			698.50
Less: Per share impact of accumulated other comprehensive income								77.97			108.75
Book value per share, excluding accumulated other comprehensive income *							$	620.55			589.75

*

Book value per share excluding accumulated other comprehensive income is a non-GAAP financial measure. Accumulated other comprehensive income totaled $283.5 million at June 30, 2021 and $395.4 million at December 31, 2020. Since accumulated 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 supplemental information.

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.

FAQ

What are the second quarter earnings for NWLI in 2021?

National Western Life Group reported second quarter earnings of $49.9 million, or $14.11 per diluted share.

How did NWLI's net earnings for the first six months of 2021 compare to 2020?

Net earnings for the first six months of 2021 were $112.0 million, a 142% increase from $46.4 million in 2020.

What was the revenue growth for NWLI in the second quarter of 2021?

Total revenues for NWLI, excluding gains, grew to $178.6 million in Q2 2021, up from $172.6 million in Q2 2020.

What is the book value per share for NWLI as of June 30, 2021?

The book value per share for National Western Life Group as of June 30, 2021, was $698.52.