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National Western Life Announces 2013 Fourth Quarter and Full Year Earnings


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[STK] NASDAQ-NMS:NWLI

[IN] FIN INS

[SU] ERN

TO BUSINESS EDITORS:

National Western Life Announces 2013 Fourth Quarter and Full Year

Earnings

AUSTIN, Texas, March 7, 2014 /PRNewswire/ -- Ross R. Moody, President

of National Western Life Insurance Company (Nasdaq: NWLI), announced

today fourth quarter 2013 consolidated net earnings of $27.8 million,

or $7.87 per diluted Class A common share, compared with consolidated

net earnings of $25.2 million, or $7.14 per diluted Class A common

share, for the fourth quarter of 2012. For the year ended December 31,

2013, the Company reported consolidated net earnings of $96.2 million,

or $27.19 per diluted Class A common share, compared with $92.6

million, or $26.19 per diluted Class A common share, a year ago. The

Company's book value per share increased to $398.36 as of December 31,

2013 from $382.37 at December 31, 2012.

Total revenues increased to $258.2 million for the quarter ended

December 31, 2013, compared to $149.4 million reported in the fourth

quarter of 2012, as market valuations on index options the Company

purchases to support its policy index obligations continued to rise in

tandem with market indices. Total revenues for the full year increased

29% to $860.3 million in 2013 from $664.7 million in 2012. Mr. Moody

noted, "The appeal of our fixed-index universal life and fixed-index

annuity product offerings was evident this past year as we experienced

sales growth rates of 32% and 9%, respectively, over 2012 levels.

Perhaps more importantly, from a profitability standpoint, is that we

continue to be able to manage the index option costs associated with

these product offerings in line with our established pricing

criteria."

The Company reported earnings from operations, excluding net realized

gains and losses on investments, of $26.9 million for the quarter

ended December 31, 2013, or $7.60 per diluted Class A common share,

compared to $21.9 million, or $6.20 per diluted Class A common share,

in the same period for 2012. Commenting on the financial performance

of the Company, Mr. Moody observed, "We booked a solid fourth quarter

to end the year as all of our profitability levers performed

consistent with expectations. The increase in interest rate levels in

the second half of the year provided a little more breathing room for

our interest spread margins." Earnings from operations for the full

year of $90.6 million, or $25.60 per diluted Class A common share,

represented an increase of 8% over the 2012 amount of $84.0 million,

or $23.76 per diluted Class A common share. Reflecting on the full

year results, Mr. Moody added, "From an operational perspective, 2013

was a record earnings year for the Company. Considering that when our

Chairman of the Board acquired National Western fifty years ago it had

roughly $20 million in assets and $4 million in capital and surplus,

it is staggering to look at the financial size and capital position of

the Company as it is today."

Founded in 1956, National Western Life is a stock life insurance

company offering a broad portfolio of individual universal life, whole

life and term insurance plans, annuity products, and investment

contracts meeting the financial needs of its customers in 49 states as

well as residents of various countries in Central and South America,

the Caribbean, Eastern Europe, Asia, and the Pacific Rim. The Company

has approximately 279 employees and 21,730 contracted independent

agents, brokers, and consultants, and at December 31, 2013, maintained

total assets of $10.8 billion, stockholders' equity of $1.4 billion,

and life insurance in force of $22.2 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 Operating Results (In thousands except per share data)

Three Months Ended Twelve Months Ended

December 31, December 31,

2013 2012 2013 2012

Revenues:

Revenues, excluding investment and index option gains (losses) 157,570 159,499 625,715 624,315

Realized and unrealized gains (losses) on index options 99,160 (15,181) 225,899 27,147

Realized gains on investments 1,454 5,089 8,653 13,201

Total revenues 258,184 149,407 860,267 664,663

Earnings:

Earnings from operations 26,897 21,941 90,622 83,978

Net realized gains on investments 945 3,308 5,625 8,580

Net earnings 27,842 25,249 96,247 92,558

Net earnings attributable to Class A shares 27,054 24,535 93,524 89,940

Basic Earnings Per Class A Share:

Earnings from operations 7.61 6.20 25.64 23.76

Net realized gains on investments 0.27 0.94 1.59 2.43

Net earnings 7.88 7.14 27.23 26.19

Basic Weighted Average Class A Shares 3,435 3,435 3,435 3,435

Diluted Earnings Per Class A Share:

Earnings from operations 7.60 6.20 25.60 23.76

Net realized gains on investments 0.27 0.94 1.59 2.43

Net earnings 7.87 7.14 27.19 26.19

Diluted Weighted Average Class A Shares 3,437 3,435 3,439 3,435

Investor Relations Contact: Brian M. Pribyl - Senior Vice President,

Chief Financial Officer and Treasurer (512) 836-1010

bpribyl@nationalwesternlife.com www.nationalwesternlife.com

SOURCE National Western Life Insurance Company

-0- 03/07/2014

/Web Site: http://www.nationalwesternlife.com

(NASDAQ-NMS:NWLI) /

CO: National Western Life Insurance Company

ST: Texas

IN: FIN INS

SU: ERN

PRN

-- DA79279 --

0000 03/07/2014 19:00:00 EDT http://www.prnewswire.com

Copyright © The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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