National Western Life Group, Inc. Announces 2024 First Quarter Earnings
National Western Life Group, Inc. reported strong first quarter 2024 earnings with net earnings of $73.6 million, revenues increasing by 29% to $197.6 million, and a book value per share of $686.73. The company experienced growth in sales activity, benefiting from equity market gains and rising interest rates. Additionally, they are working on finalizing a merger agreement with Prosperity Life Group.
Consolidated net earnings of $73.6 million, a significant increase from the previous year.
Reported revenues for the quarter increased by 29% to $197.6 million.
Book value per share as of March 31, 2024, was $686.73.
Experienced a 24% increase in life insurance sales activity compared to the previous year.
Continued progress towards closing a merger agreement with Prosperity Life Group.
Market risk benefits liability expense decreased by $16.4 million, impacting pretax earnings.
The comparative movement of the Market risk benefits liability balance had a significant effect on earnings.
Insights
The Company's reported revenues for the quarter increased
The increase in interest rates during the first quarter of 2024 served to decrease certain insurance liabilities recorded using current interest rates under life insurance accounting standards. The Company's Market risk benefits liability expense decreased
Commenting on the reported results, Mr. Moody noted, "For the most part, the economic environment coupled with financial market performance was very conducive for us from a financial reporting standpoint. The Company benefited from equity markets gains and rising interest rate levels. We experienced more sales activity on the life insurance side of the business registering a
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, 2024, 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 completion of the proposed merger (the "Proposed Transaction") contemplated by the Company's October 8, 2023 merger agreement (the "Merger Agreement") with S. USA Life Insurance Company, Inc. ("S.USA") and its direct wholly owned subsidiary ("PGH Merger Inc.") is uncertain; (2) the conditions to the closing of the Proposed Transaction may not be satisfied; (3) regulatory approvals required for the Proposed Transaction may not be obtained, or required regulatory approvals may delay the Proposed Transaction or result in the imposition of conditions that could have a material adverse effect on the Company or S.USA or cause certain conditions to the closing to not be satisfied, which could result in the termination of the Merger Agreement; (4) the business of the Company or S.USA could suffer as a result of uncertainty surrounding the Proposed Transaction; (5) events, changes or other circumstances could occur that could give rise to the termination of the Merger Agreement; (6) there are risks related to disruption of management's attention from the ongoing business operations of the Company or S.USA due to the Proposed Transaction; (7) the announcement or pendency of the Proposed Transaction could affect the relationships of the Company or S.USA with its clients, and operating results and business generally, including its ability to retain and attract employees; (8) the outcome of any legal proceedings initiated against the Company or S.USA following the announcement of the Proposed Transaction could adversely affect the Company or S.USA, including their ability to consummate the Proposed Transaction; and (9) the Company or S.USA may be adversely affected by other economic, business, and/or competitive factors as well as management's response to any of the factors described in this paragraph. 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 | ||||
March 31, | ||||
2024 | 2023 | |||
Revenues: | ||||
Revenues, excluding investment and index option gains (losses) | $ | 159,167 | 149,614 | |
Realized and unrealized gains on index options | 38,407 | 2,933 | ||
Realized gains (losses) on investments | (8) | 67 | ||
Total revenues | 197,566 | 152,614 | ||
Benefits and expenses: | ||||
Life and other policy benefits | 25,519 | 24,190 | ||
Policy benefit remeasurement (gains) and losses | — | — | ||
Market risk benefits (gains) losses | (16,417) | 36,960 | ||
Amortization of deferred transaction costs | 20,439 | 21,274 | ||
Universal life and annuity contract interest | 41,611 | 30,212 | ||
Other operating expenses | 33,136 | 24,683 | ||
Total benefits and expenses | 104,288 | 137,319 | ||
Earnings before income taxes | 93,278 | 15,295 | ||
Income tax expense | 19,670 | 2,991 | ||
Net earnings | $ | 73,608 | 12,304 | |
Net earnings attributable to Class A shares | $ | 71,526 | 11,956 | |
Diluted Earnings Per Class A Share | $ | 20.82 | 3.48 | |
Diluted Weighted Average Class A Shares | 3,436 | 3,436 | ||
March 31, | December 31, | |||
2024 | 2023 | |||
Book value per share | $ | 686.73 | 670.99 | |
Less: Per share impact of accumulated other comprehensive income (loss) | (93.22) | (88.72) | ||
Book value per share, excluding accumulated other comprehensive income (loss) * | $ | 779.95 | 759.71 | |
* | 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.
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