National Western Life Group, Inc. Announces 2023 Second Quarter Earnings
The Company's financial statements, including the comparable periods for 2022, were prepared in accordance with the new required accounting standard, Accounting for Long-Duration Contracts, referred to as "LDTI." One of the LDTI requirements is the setting of liability balances for certain contract features that have Market Risk Benefits based upon interest rates on the reporting period date. Any changes in those liabilities go through net earnings. If the interest rates change from period to period, the Market Risk Benefits liabilities also fluctuate and impact net earnings, introducing variability in reported results. In the quarters ended June 30, 2023 and 2022, the Company's pretax earnings expense/(benefit) pertaining to Market Risk Benefits were
Following the announcement on May 16, 2023 that the Company's Board of Directors was exploring strategic alternatives, the publicly traded price per share of the Company's Class A Common Stock increased significantly in the second quarter, moving from
Commenting on the results for the reporting period, Mr. Moody observed, "Unfortunately, these accounting conventions masked the hard work and progress we have made so far in 2023. We have released competitive new products into distribution channels that we have not previously been in, and we have managed to do this while decreasing our administrative cash expenditures compared to last year."
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, 2023, 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. These risks and uncertainties also include, (1) the timing of the strategic alternatives review, (2) the outcome of the strategic alternatives review, including whether any transaction occurs at all, (3) if a transaction does occur, the form (cash, securities or other consideration) and the amount of the consideration, if any, paid to the Company's stockholders, and (4) if a definitive agreement for a transaction is signed with another party, whether the conditions to closing are satisfied, including any necessary insurance regulatory or other approvals. The foregoing review of important factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included herein and elsewhere, including the risk factors included in the Company's most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q and other documents of the Company on file with the SEC. The Company does not undertake any obligation to update, correct or otherwise revise any forward-looking statements. All subsequent written and oral forward-looking statements attributable to the Company and/or any person acting on its behalf are expressly qualified in their entirety by this section.
Summary of Consolidated Financial Results (Unaudited) | ||||||||
(In thousands except per share data) | ||||||||
Three Months Ended | Six Months Ended | |||||||
June 30, | June 30, | |||||||
2023 | 2022 | 2023 | 2022 | |||||
Revenues: | ||||||||
Revenues, excluding investment and index option gains | $ | 164,183 | 154,939 | 313,797 | 327,596 | |||
Realized and unrealized gains (losses) on index options | 21,968 | (38,425) | 24,901 | (76,623) | ||||
Realized gains on investments | 26 | 1,766 | 93 | 5,560 | ||||
Total revenues | 186,177 | 118,280 | 338,791 | 256,533 | ||||
Benefits and expenses: | ||||||||
Life and other policy benefits | 32,688 | 26,200 | 56,878 | 59,713 | ||||
Market risk benefit expense | (788) | (55,492) | 36,172 | (116,498) | ||||
Amortization of deferred transaction costs | 22,000 | 22,500 | 43,274 | 45,936 | ||||
Universal life and annuity contract interest | 32,947 | (26,198) | 63,159 | (39,769) | ||||
Other operating expenses | 62,443 | 30,323 | 87,126 | 62,903 | ||||
Total benefits and expenses | 149,290 | (2,667) | 286,609 | 12,285 | ||||
Earnings before income taxes | 36,887 | 120,947 | 52,182 | 244,248 | ||||
Income tax expense | 7,253 | 24,420 | 10,244 | 50,159 | ||||
Net earnings | $ | 29,634 | 96,527 | 41,938 | 194,089 | |||
Net earnings attributable to Class A shares | $ | 28,796 | 93,797 | 40,752 | 188,600 | |||
Diluted Earnings Per Class A Share | $ | 8.38 | 27.30 | 11.86 | 54.89 | |||
Diluted Weighted Average Class A Shares | 3,436 | 3,436 | 3,436 | 3,436 | ||||
June 30, | December 31, | |||||||
2023 | 2022 | |||||||
Book value per share | $ | 626.57 | 602.56 | |||||
Less: Per share impact of accumulated other | (119.05) | (131.52) | ||||||
Book value per share, excluding accumulated other | $ | 745.62 | 734.08 |
* | Book value per share excluding accumulated other comprehensive income (loss) 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@nwlic.com
www.nwlgi.com
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SOURCE National Western Life Group, Inc.