Profile: National Western Life Insurance Co (NWLI.OQ)
7 Mar 2014
National Western Life Insurance Company (National Western) is a stock life insurance company. As of December 31, 2011, the Company was doing business in 49 states, the District of Columbia, and four United Sates territories or possessions. The Company operates in three segments: domestic life insurance, international life insurance and annuities. The Company provides life insurance products for the savings and protection needs of approximately 137,000 policyholders and for the asset accumulation and retirement needs of 140,000 annuity contract holders. National Western offers a portfolio of individual whole life, universal life and term insurance plans, and annuities, including supplementary riders. 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.
The Company's life products provide protection for the life of the insured and, in some cases, allow for cash value accumulation on a tax-deferred basis. These product offerings include universal life insurance (UL), interest-sensitive whole life, and traditional products, such as term insurance coverage. Interest sensitive products, such as UL accept premiums that are applied to an account value. The equity-indexed universal life (EIUL) policy whose credited interest may be linked in part to an outside index, such as the S&P 500 Composite Stock Price Index (S&P 500 Index) at the election of the policyholder. Annuity products sold include flexible premium and single premium deferred annuities, fixed-indexed annuities, and single premium immediate annuities. A fixed single premium deferred annuity (SPDA) provides for a single premium payment at the time of issue, an accumulation period, and an annuity payout period commencing at some future date. A flexible premium deferred annuity (FPDA) provides the same features but allows, generally with some conditions, additional payments into the contract.
As of December 31, 2011, the Company was 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 the Company's annuities. National Western markets and distributes its domestic products primarily through independent national marketing organizations (NMOs). These NMOs assist the Company in recruiting, contracting, and managing independent agents. The Company's agents are independent contractors who are compensated on a commission basis. As of December 31, 2011, the Company's NMO relationships had contracted approximately 13,000 independent agents with the Company. As of December 31, 2011, the Company had nearly 63,000 domestic life insurance policies and 140,000 annuity contracts.
National Western's international operations generally focus on foreign nationals. Insurance products are issued primarily to residents of countries in Central and South America, the Caribbean, the Pacific Rim, Eastern Europe, and Asia. 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, 2011, the Company had more than 74,000 international life insurance policies. The Company had relationships with approximately 3,500 of independent international individuals, as of December 31, 2011.
The Company competes with Pan-American Life Insurance, American Fidelity Life Insurance, Manhattan Life Insurance Company, Best Meridian Insurance, American Equity Investment Life, Sammons Financial Group, AVIVA, Allstate, Lincoln National Life, Equitrust Life Insurance Company and Old Mutual Financial Network.
National Western Life Insurance Co
850 EAST ANDERSON LANE
AUSTIN TX 78752-1602