National Western Life Posts 2013 4th Quarter and Full Year Earnings
March 12, 2014 by Proquest LLC
Ross R. Moody, President of National Western Life Insurance Company, announced 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.
In a release onMarch 7, the Company noted that for the year ended December 31, 2013, it 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 ofDecember 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 percent to$860.3 million in 2013 from$664.7 million in 2012. 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 percent and 9 percent, 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, 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 percent over the 2012 amount of$84.0 million, or$23.76 per diluted Class A common share. Reflecting on the full year results, 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.”
National Western Life is a stock life insurance company offering a portfolio of individual universal life, whole life and term insurance plans, annuity products, and investment contracts.
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