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Proc-Type: 2001,MIC-CLEAR
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UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report: August 6, 2004 (Date of Earliest Event Reported) NATIONAL WESTERN LIFE INSURANCE COMPANY (Exact Name of Registrant as Specified in Its Charter) COLORADO (State or Other Jurisdiction of Incorporation) 2-17039 84-0467208 (Commission File Number) (I.R.S. Employer Identification Number) 850 EAST ANDERSON LANE, AUSTIN, TEXAS 78752-1602 (Address of Principal Executive Offices) (Zip code) (512) 836-1010 (Registrant's Telephone Number, Including Area Code) Item 7. Financial Statements and Exhibits Exhibit No. Description 99 Press Release dated August 6, 2004 Item 12. Results of Operations and Financial Condition On August 6, 2004, National Western Life Insurance Company (the "Company") announced via press release the Company's results for its second quarter ended June 30, 2004. A copy of the Company's press release is attached hereto as Exhibit 99. This Form 8-K and the attached exhibit are provided under Item 12 of Form 8-K and are furnished to, but not filed with, the Securities and Exchange Commission. SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. NATIONAL WESTERN LIFE INSURANCE COMPANY Date: August 6, 2004 /S/ Brian M. Pribyl Name: Brian M. Pribyl Title: Senior Vice President Chief Financial & Administrative Officer EXHIBIT 99 Austin, Texas, August 6, 2004 - Ross R. Moody, President of National Western Life Insurance Company (Nasdaq: NWLIA), announced today second quarter 2004 consolidated net earnings of $19.7 million, or $5.47 per diluted share, a 15% increase over consolidated net earnings of $17.1 million, or $4.82 per diluted share, reported for the second quarter of 2003. Consolidated net earnings for the first six months of 2004 were $89.0 million, or $24.74 per diluted share, compared with $26.8 million, or $7.56 per diluted share, reported a year ago. The 2004 results include the effect of a required change in accounting for certain annuity contracts during the first quarter of the year which increased reported net earnings by $54.7 million, or $15.20 per diluted share. The Company's book value per share at June 30, 2004 increased to $213.18. Earnings from operations, excluding net realized gains and losses on investments(
( c ) Exhibits
The press release is available at the Company's website, www.nationalwesternlife.com.
and Treasurer
National Western Life Announces 2004 Second Quarter Earnings
The Company's annuity sales(2) in the first six months of 2004 of $553 million matched the record pace of $529 million established in 2003. Mr. Moody cautioned that the company does not anticipate continuing at the pace of 2003. "The market was ideal in 2003 for our annuity products and we were well positioned heading into this environment relative to our competition. We are beginning to see the trend abate though we still anticipate 2004 to be a very strong sales year," Mr. Moody stated.
Investment performance remained substantially ahead of the prior year as investment income, excluding index options(3), totaled $147.8 million in the first six months of 2004 compared to $130.3 million in the same period of 2003. Mr. Moody offered that while certain credit sectors remain under close watch, the overall composition of the Company's investment portfolio remains of high quality. For the first six months of 2004, the Company reported realized investment gains, net of taxes, of $2.3 million, or $0.63 per diluted share, compared to realized investment losses of $4.1 million, or $1.16 per diluted share, during the first six months of 2003.
Mr. Moody added that the Company has benefited from favorable mortality experience in its life insurance product lines and successfully controlled expense levels despite the increase in business volume. Mr. Moody noted, however, that costs incurred in complying with new requirements of the Sarbanes-Oxley Act, particularly section 404, could potentially result in significant costs for publicly traded companies during the remainder of the year. "Even though our operations are centralized, we are beginning to see the incremental expenses associated with fulfilling the requirements of the Sarbanes-Oxley Act," Mr. Moody stated.
At June 30, 2004, the Company maintained total stockholders' equity of $759 million, assets of $5.7 billion, and life insurance in force of approximately $13.3 billion.
($'s in millions) |
Three Months Ended |
Six Months Ended |
||||||
June 30, |
June 30, |
|||||||
2004 |
2003 |
2004 |
2003 |
|||||
Net investment income |
$ |
76.5 |
76.3 |
149.0 |
135.1 |
|||
Gain (loss) on index options |
(0.2) |
9.3 |
1.2 |
4.8 |
||||
Net investment income |
||||||||
excluding index options |
$ |
76.7 |
67.0 |
147.8 |
130.3 |
|||
Summary of Consolidated Operating Results
Three Months Ended |
Six Months Ended |
|||||||
June 30, |
June 30, |
|||||||
2004 |
2003 |
2004 |
2003 |
|||||
Revenues: |
||||||||
Revenues, excluding realized investment |
||||||||
gains (losses) and index options |
$ |
105,652 |
91,580 |
203,271 |
180,205 |
|||
Index options |
(186) |
9,272 |
1,200 |
4,808 |
||||
Realized gains (losses) on investments |
2,013 |
392 |
3,472 |
(6,317) |
||||
Total revenues |
$ |
107,479 |
101,244 |
207,943 |
178,696 |
|||
Earnings: |
||||||||
Earnings from operations |
$ |
18,403 |
16,830 |
32,071 |
30,917 |
|||
Net realized gains (losses) on investments |
1,309 |
255 |
2,257 |
(4,106) |
||||
Cumulative effect of a change in |
||||||||
accounting principle |
- |
- |
54,697 |
- |
||||
Net earnings |
$ |
19,712 |
17,085 |
89,025 |
26,811 |
|||
Basic Earnings Per Share: |
||||||||
Earnings from operations |
$ |
5.17 |
4.77 |
9.02 |
8.77 |
|||
Net realized gains (losses) on investments |
0.37 |
0.07 |
0.64 |
(1.17) |
||||
Cumulative effect of a change in |
||||||||
accounting principle |
- |
- |
15.38 |
- |
||||
Net earnings |
$ |
5.54 |
4.84 |
25.04 |
7.60 |
|||
Basic Weighted Average Shares |
3,557 |
3,528 |
3,556 |
3,526 |
||||
Diluted Earnings Per Share: |
||||||||
Earnings from operations |
$ |
5.11 |
4.75 |
8.91 |
8.72 |
|||
Net realized gains (losses) on investments |
0.36 |
0.07 |
0.63 |
(1.16) |
||||
Cumulative effect of a change in |
||||||||
accounting principle |
- |
- |
15.20 |
- |
||||
Net earnings |
$ |
5.47 |
4.82 |
24.74 |
7.56 |
|||
Diluted Weighted Average Shares |
3,599 |
3,550 |
3,598 |
3,548 |
||||
Investor Relations Contact:
Brian M. Pribyl
Senior Vice President
Chief Financial & Administrative Officer
(512) 719-2493
bpribyl@nationalwesternlife.com