10.03.2023 23:05:00

National Western Life Group, Inc. Announces 2022 Full Year and Fourth Quarter Earnings

AUSTIN, Texas, March 10, 2023 /PRNewswire/ -- Ross R. Moody, Chairman of the Board, President, and Chief Executive Officer of National Western Life Group, Inc. (Nasdaq: NWLI), announced today 2022 consolidated net earnings of $101.1 million, or $28.60 per diluted Class A common share, compared with consolidated net earnings of $180.7 million, or $51.10 per diluted Class A common share, for 2021. The Company's book value per share as of December 31, 2022 was $552.04.

For the year ended December 31, 2022, the Company reported total revenues of $558.4 million compared to $824.1 million reported in 2021. Commenting on the results, Mr. Moody noted, "Our premiums and contract revenues were higher in 2022 at $226.9 million versus $224.3 million last year and death claims and other policy benefits paid decreased to $113.0 million from $126.5 million in 2021. As a result, our organization experienced a better outcome from a policy performance standpoint when measuring policy revenues in excess policy benefits." Mr. Moody added that, similar to industry year-end earnings released thus far, the Company's financial statements incurred declines due to the impact of higher interest rate levels and the negative impact higher rates impose when recording investment balances at fair market value. "Our investment revenues declined $219.1 million due to unrealized losses from recording trading debt securities and equity securities at fair market value. Despite the unrealized losses, over 98% of our bond portfolio remains investment grade," Mr. Moody observed.

For the three months ended December 31, 2022, the Company reported consolidated net earnings of $12.4 million, or $3.52 per diluted Class A common share, compared with $28.8 million, or $8.15 per diluted Class A common share, a year ago. Mr. Moody stated, "The rise in interest rates also greatly diminished the number of bond issuers calling their securities, which is the primary source of our realized investment gains." Mr. Moody further indicated that the increase in the Company's publicly traded common share price also influenced reported earnings. "The price per share of our stock increased 31% during 2022. This had a significant impact on liabilities we record based upon the market price of our stock. Pretax earnings were charged $15.2 million for the increase in these liabilities with nearly all of the increase occurring in the fourth quarter," according to Mr. Moody.

The Company's book value per share, excluding accumulated other comprehensive income (loss) which includes fluctuations from changes in fair value adjustments, grew from $639.09 at December 31, 2021 to $666.56 at December 31, 2022. Although considered a non-GAAP financial measure, the Company reports this metric to eliminate volatility caused primarily by interest rate level changes.

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 December 31, 2022, the Company maintained consolidated total assets of $13.1 billion, consolidated stockholders' equity of $2.0 billion, and combined life insurance in force of $19.7 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 Financial Results (Unaudited)

(In thousands except per share data)




Three Months Ended


Twelve Months Ended



December 31,


December 31,



2022


2021


2022


2021

Revenues:









Revenues, excluding investment and index
option gains (losses)

$

160,711


161,316


638,908


688,423

Realized and unrealized gains (losses) on index
options


2,307


50,244


(86,866)


120,718

Realized gains on investments


50


5,107


6,355


14,950

Total revenues


163,068


216,667


558,397


824,091










Benefits and expenses:









Life and other policy benefits


45,038


43,152


159,470


187,577

Amortization of deferred transaction costs


32,947


22,739


121,398


69,462

Universal life and annuity contract interest


26,736


78,703


15,678


213,185

Other operating expenses


43,526


36,014


135,817


126,610

Total benefits and expenses


148,247


180,608


432,363


596,834










Earnings before income taxes


14,821


36,059


126,034


227,257

Income tax expense


2,387


7,247


24,890


46,576

Net earnings

$

12,434


28,812


101,144


180,681










Net earnings attributable to Class A shares

$

12,082


27,998


98,283


175,571










Diluted Earnings Per Class A Share

$

3.52


8.15


28.60


51.10










Diluted Weighted Average Class A Shares


3,436


3,436


3,436


3,436
















December 31,


December 31,







2022


2021










Book value per share





$

552.04


698.48

Less: Per share impact of accumulated other
comprehensive income (loss)






(114.52)


59.39

Book value per share, excluding accumulated
other comprehensive income (loss) *





$

666.56


639.09



*

Book value per share excluding accumulated other comprehensive income (loss) is a non-GAAP financial measure. Accumulated other comprehensive income (loss) totaled $(416.4) million at December 31, 2022 and $216.0 million at December 31, 2021. Since accumulated other comprehensive income (loss) fluctuates from quarter to quarter due to unrealized changes in the fair value of investments caused primarily by changes in market interest rates, National Western Life Group, Inc. believes this financial measure provides useful supplemental information.



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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