National Western Life Group, Inc. Announces 2022 First Quarter Earnings
National Western Life Group, Inc. (NWLI) reported a 42% decline in total revenues for Q1 2022, totaling $134.3 million, primarily due to unrealized investment losses. The company's net earnings fell to $36.2 million, or $10.23 per diluted share, from $62.1 million in Q1 2021. As of March 31, 2022, book value per share decreased to $632.00 from $698.48. Key factors included significant unrealized losses on investments, shifting from a gain of $476 million at year-end 2021 to a loss of $155.3 million in Q1 2022.
- Improvement in claim experience, with COVID-19 related claims down nearly 60% year-over-year.
- Consolidated total assets stood at $13.8 billion, supporting financial stability.
- Total revenues fell 42% from Q1 2021, indicating a challenging environment.
- Net earnings dropped from $62.1 million to $36.2 million, reflecting decreased profitability.
- Unrealized losses on index options shifted from a gain of $28 million to a loss of $38.2 million.
- The company's debt security investment portfolio reported unrealized losses of $155.3 million.
AUSTIN, Texas, May 10, 2022 /PRNewswire/ -- Ross R. Moody, Chairman of the Board, President, and Chief Executive Officer of National Western Life Group, Inc. (Nasdaq: NWLI), announced today first quarter 2022 consolidated net earnings of
Total revenues declined
The Company reported that index options purchased to hedge the crediting rate mechanism in its equity-indexed life and annuity products swung from an unrealized gain of
The Company reported that net earnings for the quarter ended March 31, 2022 included improvement in claim experience over the first quarter in the prior year. Mr. Moody noted, "Claims reported which indicated the cause of death as COVID-19 decreased nearly
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 March 31, 2022, the Company maintained consolidated total assets of
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 | ||||
March 31, | ||||
2022 | 2021 | |||
Revenues: | ||||
Revenues, excluding investment and index option gains (losses) | $ | 168,703 | 200,938 | |
Realized and unrealized gains (losses) on index options | (38,198) | 28,024 | ||
Realized gains on investments | 3,794 | 1,416 | ||
Total revenues | 134,299 | 230,378 | ||
Benefits and expenses: | ||||
Life and other policy benefits | 41,899 | 37,889 | ||
Amortization of deferred transaction costs | 29,016 | 29,989 | ||
Universal life and annuity contract interest | (14,805) | 52,845 | ||
Other operating expenses | 32,582 | 31,335 | ||
Total benefits and expenses | 88,692 | 152,058 | ||
Earnings before income taxes | 45,607 | 78,320 | ||
Income tax expense | 9,423 | 16,191 | ||
Net earnings | $ | 36,184 | 62,129 | |
Net earnings attributable to Class A shares | $ | 35,161 | 60,372 | |
Diluted Earnings Per Class A Share | $ | 10.23 | 17.57 | |
Diluted Weighted Average Class A Shares | 3,436 | 3,436 | ||
March 31, | December 31, | |||
2022 | 2021 | |||
Book value per share | 632.00 | 698.48 | ||
Less: Per share impact of accumulated other comprehensive income | (17.04) | 59.39 | ||
Book value per share, excluding accumulated other comprehensive income * | 649.04 | 639.09 |
* | Book value per share excluding accumulated other comprehensive income is a non-GAAP financial measure. Accumulated other comprehensive income (loss) totaled |
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.
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