National Western Life Group, Inc. Announces 2020 Second Quarter Earnings
August 07, 2020 at 13:00 PM EDT
AUSTIN, Texas, Aug. 7, 2020 /PRNewswire/ -- Ross R. Moody, Chairman of the Board, President, and Chief Executive Officer of National Western Life Group, Inc. (Nasdaq: NWLI), announced today second quarter 2020 consolidated net earnings of $48.4 million, or $13.69 per diluted Class A common share, compared with consolidated net earnings of $33.7 million, or $9.53 per diluted Class A common share, for the second quarter of 2019. For the six months ended June 30, 2020, the Company reported consolidated net earnings of $46.4 million, or $13.11 per diluted Class A common share, compared with $73.9 million, or $20.90 per diluted Class A common share, a year ago. The Company's book value per share as of June 30, 2020 was $600.31.
Total revenues increased in the second quarter of 2020 to $216.0 million from $192.7 million in the second quarter of 2019 reflecting recovery of a portion of the investment asset unrealized losses which occurred during the first quarter of 2020. Net realized and unrealized gains on investments and index options were $43.4 million in the second quarter of 2020 compared to net realized and unrealized losses of $103.1 million in the first quarter. Mr. Moody observed, "We were hopeful that the market disruption caused by the COVID-19 pandemic upon the first quarter results would be a temporary aberration and our second quarter results validated that outlook to a certain degree. I am extremely proud of how quickly our management teams adapted to the situation and put our staff in a position to continue business operations without interruption." The Company announced that life insurance sales increased 10% in the first half of 2020 over the same time frame last year while annuity sales increased 26% over the same period.
Consolidated net earnings in the quarter ended June 30, 2020 increased 44% from the amount reported in the second quarter of 2019, elevating the Company's book value per share over $600 for the first time. Mr. Moody commented on the results saying, "Our emphasis on creating a solid financial foundation is validated during challenging times and allows us to take on obstacles like the pandemic and continue forward in executing our strategic initiatives." Mr. Moody noted that the second quarter results included consolidated life insurance claims of $1.1 million due to COVID-19. "Claim experience thus far has been well within our pricing assumptions as we continue to monitor and track this activity," he added.
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, 2020, the Company maintained consolidated total assets of $12.4 billion, consolidated stockholders' equity of $2.2 billion, and combined life insurance inforce of $22.5 billion.
Caution Regarding Forward-Looking Statements:
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SOURCE National Western Life Group, Inc.