National Western Life Group, Inc. Announces First Quarter 2024 Results

AUSTIN, TX, May 9, 2024 /PRNewswire/ — Ross R. MoodyChairman, President and Chief Executive Officer of National Western Life Group, Inc. (Nasdaq: NWLI), today announced first quarter 2024 consolidated net income of $73.6 millionOr $20.82 per diluted share of Class A common stock, compared to the consolidated net income of $12.3 millionOr $3.48 per diluted share of Class A common stock for the first quarter of 2023. The book value per share of the Company as of the first quarter of 2023. March 31, 2024 was $686.73.

The Company’s reported revenue for the quarter increased 29% to $197.6 million Since $152.6 million in the first quarter of 2023. The performance of the stock market during the first quarter of 2024 contributed to increased realized and unrealized gains on derivative investments that the Company purchases to cover the interest credit mechanism on its fixed index annuities and its universal life insurance products. Higher yields from bond purchases during the quarter continued to help increase overall investment portfolio returns. Net investment income, excluding gains on index option derivatives, increased to $96.0 million for the completed quarter March 31, 2024 Since $87.0 million in the first quarter of 2023.

The increase in interest rates during the first quarter of 2024 made it possible to reduce certain insurance liabilities recognized according to the interest rates in effect according to life insurance accounting standards. The Company’s market risk benefit liability expense decreased $16.4 million in the March 31, 2024 quarter compared to an increase of $37.0 million in the first quarter of 2023. The comparative evolution of the balance of the market risk benefit liability had a significant effect on profit before tax.

Commenting on the reported results, Mr. Moody said: “For the most part, the economic environment associated with the performance of the financial markets has been very favorable for us from a financial reporting perspective. The Company benefited from stock market gains and rising interest rates. saw increased sales activity on the life insurance side, recording a 24% increase in the insured amount of life insurance sold in the first quarter of 2024 compared to last year. In addition, we continued to work towards obtaining the necessary approvals which constitute a condition. for completing our previously announced merger agreement with Prosperity Life Group. »

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, two stock life insurance companies together offering a broad portfolio of insurance universal individual life, whole life and temporary. insurance plans, as well as annuity products. HAS March 31, 2024the Company maintained consolidated total assets of $12.1 billionconsolidated equity of $2.5 billionand combined life insurance in force $17.7 billion.

Cautionary Note Regarding Forward-Looking Statements:
This press release contains statements that are or may be considered 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. These risks and uncertainties also include: (1) the timing of consummation of the proposed merger (the “Proposed Transaction”) contemplated by the board of directors of the Company. October 8, 2023 the merger agreement (the “Merger Agreement”) with S. USA Life Insurance Company, Inc. (“S.USA”) and its direct, wholly-owned subsidiary (“PGH Merger Inc.”) is uncertain; (2) the conditions to closing of the proposed transaction may not be satisfied; (3) the required regulatory approvals for the Proposed Transaction may not be obtained, or the required regulatory approvals may delay the Proposed Transaction or result in the imposition of conditions that could have a material adverse effect on the Company or the Southern United States. United or cause certain conditions to the closing not to be completed, which could result in the termination of the merger agreement; (4) the Company’s or S.USA’s business may suffer due to uncertainty surrounding the proposed transaction; (5) events, changes or other circumstances may arise that could give rise to the termination of the Merger Agreement; (6) there are risks associated with a disruption in management’s attention to the Company’s ongoing business operations or the Southern United States as a result of the proposed transaction; (7) the announcement or anticipation of the Proposed Transaction could affect the Company’s or S.USA’s relationships with its customers, as well as its operating results and business generally, including its ability to retain and attract employees ; (8) the outcome of any legal proceedings initiated against the Company or S.USA following announcement of the Proposed Transaction could harm the Company or S.USA, including their ability to consummate the Proposed Transaction; and (9) the Company or S.USA may be adversely affected by other economic, business and/or competitive factors as well as management’s response to any of the factors described in this paragraph. The foregoing discussion of important factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements included here and elsewhere, including the risk factors included in the Company’s most recent annual report on form 10-K and its quarterly report. on Form 10-Q and other company documents filed with the SEC. The Company undertakes no obligation to update, correct or otherwise revise any forward-looking statements. All subsequent written and oral forward-looking statements attributable to the Company and/or any person acting on its behalf are expressly qualified in their entirety by this section.

Investor Relations Contact:
Brian M. Pribyl – Senior Vice President, Chief Financial Officer and Treasurer
(512) 836-1010
(email protected)
www.nwlgi.com

SOURCE National Western Life Group, Inc.