Profile: National Western Life Insurance Company (NWLI.O)

National Western Life Insurance Company (National Western) is a stock life insurance company and doing business in 49 states, the District of Columbia, and four United States territories or possessions. National Western is also licensed in Haiti, and although not otherwise licensed, accepts applications from and issues policies to residents of various countries in Central and South America, the Caribbean, the Pacific Rim, Eastern Europe and Asia. Such policies are underwritten, accepted, and issued in the United States upon applications submitted by independent contractors. The Company provides life insurance products for the savings and protection needs of approximately 148,000 policyholders and for the asset accumulation and retirement needs of 117,000 annuity contract holders. National Western offers a portfolio of individual whole life, universal life and term insurance plans, and annuities, including supplementary riders. The Company manages its business between Domestic Insurance Operations and International Insurance Operations.

United States Insurance Operation

The Company is licensed to do business in all states and the District of Columbia, except for New York. Products marketed are annuities, universal life insurance, and traditional life insurance, which include both term and whole life products. The majority of domestic sales are National Western's annuities. National Western markets and distributes its domestic products primarily through independent national marketing organizations (NMO). These NMOs assist the Company in recruiting, contracting, and managing independent agents. National Western's agents are independent contractors who are compensated on a commission basis. As of December 31, 2008, the Company's NMO relationships had contracted approximately 4,300 independent agents with the Company.

The Company competes with American Equity Investment Life, Sammons Financial Group, AVIVA, Allstate, Lincoln National Life, Equitrust Life Insurance Company and Old Mutual Financial Network.

International Insurance Operations

National Western's international operations generally focus on foreign nationals in upper socioeconomic classes. Insurance products are issued primarily to residents of countries in Central and South America, the Caribbean, the Pacific Rim, Eastern Europe, and Asia. Issuing policies to residents of countries in these different regions provides diversification that helps to minimize large fluctuations that could arise due to various economic, political, and competitive pressures that may occur from one country to another. Products issued to international residents are almost entirely universal life and traditional life insurance products. However, certain annuity and investment contracts are also available. As of December 31, 2008, the Company had 74,860 international life insurance policies in force.

International applications are submitted by independent contractors, consultants and broker-agents, many of whom have been submitting policy applications to National Western for 20 or more years. The Company had relationships with approximately 4,800 independent international individuals as of December 31, 2008, nearly 45% of which submitted policy applications to National Western in the past 12 months.

The Company competes with Pan-American Life Insurance, American Fidelity Life Insurance, Manhattan Life Insurance Company and Best Meridian Insurance.