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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
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