National Western Life Announces First Quarter 2008 Earnings
07 Maggio 2008 - 4:32PM
PR Newswire (US)
AUSTIN, Texas, May 7 /PRNewswire-FirstCall/ -- Ross R. Moody,
President of National Western Life Insurance Company
(NASDAQ:NWLIA), announced today first quarter 2008 consolidated net
earnings of $14.4 million, or $4.07 per diluted Class A share,
compared with consolidated net earnings of $18.7 million, or $5.23
per diluted Class A share, reported for the first quarter ended
March 31, 2007. The Company's book value per share at March 31,
2008 increased to $283.27. Operating revenues, excluding realized
investment gains and losses and derivative losses, totaled $123.2
million for the quarter ended March 31, 2008, an increase of 4%
from revenues of $118.5 million reported in the first quarter of
2007. Mr. Moody observed, "We continue to see our business lines
growing nicely. Life insurance sales were up 20% in the first
quarter over the prior year and for the first time in awhile we
enjoyed an increase in annuity sales which were 3% higher in the
first quarter compared to the first quarter of 2007." Mr. Moody
added that the Company's net investment income, excluding
derivative losses (1), increased to $84.0 million for the quarter
ended March 31, 2008, compared to $81.6 million in the first
quarter of 2007. "While we continuously monitor our investment
portfolio, particularly in this tough credit market, for possible
impairment issues under the accounting rules, we are at the same
time pleased with the investment performance of our portfolio and
the absence of significant writedowns in our financial statements
over the past several years," Mr. Moody noted. Mr. Moody stated
that the Company's first quarter of 2008 earnings were impacted by
the ongoing low interest rate environment combined with volatile
equity markets which affects products of the Company with equity
crediting rate features tied to stock market performance. "The
combination of low interest rates and an equity market subject to
wide swings not only puts pressure on our interest rate spreads,
but also requires us to recognize a higher level of amortization of
our deferred policy acquisition costs," Mr. Moody indicated. He
reported that in addition to the decreased margin of investment
earnings over interest credited to policyholders amortization
expense was $2.5 million higher in the first quarter of 2008
compared to 2007. 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 290
employees and 10,900 contracted independent agents, brokers and
consultants, and at March 31, 2008, maintained total assets of
nearly $6.9 billion, stockholders' equity in excess of $1.0
billion, and life insurance in force of approximately $17.9
billion. Caution Regarding Forward-Looking Statements: This press
release contains statements which are or may be viewed as
forward-looking within the meaning of The Private Securities
Litigation Reform Act of 2005. Forward-looking statements relate to
future operations, strategies, financial results or other
developments, and are subject to assumptions, risks and
uncertainties. Factors that may cause actual results to differ
materially from those contemplated in these forward-looking
statements can be found in the Company's Form 10-K filed with the
Securities and Exchange Commission. Forward-looking statements
speak only as of the date the statement was made and the Company
undertakes no obligation to update such forward-looking statements.
There can be no assurance that other factors not currently
anticipated by the Company will not materially and adversely affect
our results of operations. Investors are cautioned not to place
undue reliance on any forward-looking statements made by us or on
our behalf. (1) The Company considers net investment income,
excluding derivative losses, a useful measurement of the Company's
underlying investment portfolio performance by removing the
volatility due to changes in fair values of derivative instruments.
As net investment income, excluding derivative losses, is
considered a non-GAAP financial measure, the following
reconciliation is provided. ($'s in millions) Three Months Ended
March 31, 2008 2007 Net investment income $59.4 77.0 Derivative
loss (24.6) (4.6) Net investment income excluding derivative loss
$84.0 81.6 Summary of Consolidated Operating Results (In thousands
except per share data) Three Months Ended March 31, 2008 2007
Revenues: Revenues, excluding realized investment gains (losses)
and derivative loss $123,238 118,466 Derivative loss (24,557)
(4,595) Realized gains (losses) on investments (44) 241 Total
revenues $98,637 114,112 Earnings: Earnings from operations $14,475
18,515 Net realized gains (losses) on investments (29) 157 Net
earnings $14,446 18,672 Net earnings attributable to Class A shares
$14,037 18,142 Basic Earnings Per Class A Share: Earnings from
operations $4.11 5.26 Net realized gains (losses) on investments
(0.01) 0.04 Net earnings $4.10 5.30 Basic Weighted Average Class A
Shares 3,423 3,421 Diluted Earnings Per Class A Share: Earnings
from operations $4.08 5.19 Net realized gains (losses) on
investments (0.01) 0.04 Net earnings $4.07 5.23 Diluted Weighted
Average Class A Shares 3,447 3,469 Investor Relations Contact:
Brian M. Pribyl Senior Vice President, Chief Financial &
Administrative Officer (512) 836-1010
http://www.nationalwesternlife.com/ DATASOURCE: National Western
Life Insurance Company CONTACT: Investor Relations, Brian M.
Pribyl, Senior Vice President, Chief Financial & Administrative
Officer of National Western Life Insurance Company,
+1-512-836-1010, Web site: http://www.nationalwesternlife.com/
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