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National Western Life Announces 2012 Third Quarter Earnings

         National Western Life Announces 2012 Third Quarter Earnings

PR Newswire

AUSTIN, Texas, Nov. 8, 2012

AUSTIN, Texas, Nov. 8, 2012 /PRNewswire/ -- Ross R. Moody, President of
National Western Life Insurance Company (Nasdaq: NWLI), announced today third
quarter 2012 consolidated net earnings of $24.3 million, or $6.88 per diluted
Class A common share, compared with consolidated net earnings of $19.3
million, or $5.45 per diluted Class A common share, for the third quarter of
2011. For the nine months ended September 30, 2012, the Company reported
consolidated net earnings of $67.3 million, or $19.04 per diluted Class A
common share, compared with $51.3 million, or $14.49 per diluted Class A
common share, a year ago. The Company's book value per share increased to
$376.47 as of September 30, 2012 from $366.27 at June 30, 2012.

Operating revenues, excluding realized gains on investments and realized and
unrealized gains (losses) on index options, increased to $153.7 million for
the quarter ended September 30, 2012, compared to $150.9 million reported in
the third quarter of 2011. For the first nine months of 2012, adjusted
operating revenues of $464.8 million represented an increase in excess of 4%
versus the comparable period in 2011. Mr. Moody noted that growing revenues in
the current economic climate was a challenge. "There is a high degree of
uncertainty among consumers right now given lingering high unemployment,
ongoing economic contraction in Europe and the imminent 'fiscal cliff'
scenario created by Congress. Consequently, we take great satisfaction in the
fact that, compared to a year ago at this time, the amount of life insurance
we have in force has increased to $21.3 billion from $20.5 billion and the
number of active annuity contracts has risen to 141,000 from 138,000. Steadily
growing our blocks of business will help fuel revenue and profit growth going
forward."

The Company reported earnings from operations, excluding net realized gains
and losses on investments, of $62.0 million for the nine months ended
September 30, 2012, or $17.55 per diluted Class A common share, compared to
$47.0 million, or $13.29 per diluted Class A common share, in the same period
for 2011 representing an increase of 32%. Commenting on the financial
performance of the Company, Mr. Moody observed, "We are hopeful that our
operating results thus far will translate into a solid finish to the 2012
fiscal year. Our amortization of deferred acquisition costs has been in line
with or better than our actuarial assumptions creating a bottom line benefit
to our operating earnings. Likewise, our investment portfolio impairments have
been miniscule this year as evidenced by the net realized gains we have been
reporting each quarter. In this low interest rate environment, we continue to
actively manage our investment spreads based upon the yields we are able to
obtain within the framework of our investment guidelines."

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 283 employees and 16,900
contracted independent agents, brokers, and consultants, and at September 30,
2012, maintained total assets of $10.2 billion, stockholders' equity of $1.4
billion, and life insurance in force of $21.3 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.



Summary of Consolidated Operating Results

(In thousands except per share data)


                                      Three Months Ended   Nine Months Ended
                                      September 30,        September 30,
                                      2012      2011       2012      2011
Revenues:
Revenues, excluding investment and    153,676   150,940    464,816   445,125
index option gains (losses)
Realized and unrealized gains         32,369    (61,524)   42,328    (38,773)
(losses) on index options
Realized gains on investments         4,940     2,938      8,112     6,520
Total revenues                        190,985   92,354     515,256   412,872
Earnings:
Earnings from operations              21,111    17,355     62,036    47,027
Net realized gains on investments     3,211     1,910      5,273     4,238
Net earnings                          24,322    19,265     67,309    51,265
Net earnings attributable to Class A  23,634    18,720     65,405    49,815
shares
Basic Earnings Per Class A Share:
Earnings from operations              5.97      4.91       17.55     13.31
Net realized gains on investments     0.91      0.54       1.49      1.20
Net earnings                          6.88      5.45       19.04     14.51
Basic Weighted Average Class A Shares 3,435     3,435      3,435     3,433
Diluted Earnings Per Class A Share:
Earnings from operations              5.97      4.91       17.55     13.29
Net realized gains on investments     0.91      0.54       1.49      1.20
Net earnings                          6.88      5.45       19.04     14.49
Diluted Weighted Average Class A      3,435     3,436      3,435     3,437
Shares



Investor Relations Contact:
Brian M. Pribyl - Senior Vice President, Chief Financial Officer and Treasurer
(512) 836-1010
bpribyl@nationalwesternlife.com
www.nationalwesternlife.com

SOURCE National Western Life Insurance Company

Website: http://www.nationalwesternlife.com