AUSTIN, Texas - National Western Life Group, Inc. (NASDAQ: NWLI), a life insurance company, and Prosperity Life Group have announced that the planned acquisition of National Western by Prosperity Life Group's subsidiary, S. USA Life Insurance Company, Inc. (SUSA), is set to proceed after receiving all necessary regulatory approvals. The closing of the transaction is anticipated to occur no later than July 11, 2024.
In this all-cash merger, SUSA will acquire National Western for approximately $1.9 billion. Shareholders of National Western will receive $500 in cash for each share they own upon the merger's completion. This arrangement received unanimous support from National Western's Board of Directors and was approved by a majority of shareholders during a special meeting on January 8, 2024.
National Western Life Group, Inc. serves as the parent company to National Western Life Insurance Company and Ozark National Life Insurance Company. Together, these companies provide a variety of life and annuity products. As of March 31, 2024, National Western reported consolidated assets totaling $12.1 billion, stockholders' equity of $2.5 billion, and a combined life insurance in force of $17.7 billion.
Prosperity Life Group operates under Prosperity Group Holdings, LP, and offers insurance, reinsurance, and asset management services. Licensed in 48 states and the District of Columbia, Prosperity has been serving customers for over a century with life insurance, asset accumulation, and supplemental health products. Prosperity Asset Management, a part of the group, specializes in structured credit and niche asset opportunities.
The completion of this transaction is subject to the satisfaction of the remaining conditions. It should also be noted that the forward-looking statements in the press release are subject to various risks and uncertainties, and actual results could differ from those projected. The information is based on a press release statement, and neither National Western nor SUSA is obligated to update or revise any forward-looking statements.
InvestingPro Insights
As National Western Life Group, Inc. (NASDAQ: NWLI) prepares to merge with Prosperity Life Group's subsidiary, it is worth noting the financial stability and performance metrics that have characterized the company's recent history. With a market capitalization of $1.82 billion, National Western has demonstrated a robust financial profile. The company's price-to-earnings (P/E) ratio stands at a modest 11.61 as of the last twelve months ending Q1 2024, reflecting the earnings power relative to its current share price.
Investors might find the company's commitment to shareholder returns particularly reassuring, as National Western has maintained dividend payments for an impressive 19 consecutive years. This consistency is a testament to the company's financial health and disciplined capital management strategy. Moreover, National Western's liquid assets surpass its short-term obligations, providing further evidence of its financial resilience.
An InvestingPro Tip worth highlighting is the company's stock generally trades with low price volatility, which could be an attractive feature for risk-averse investors, especially in the context of a significant transaction like the one with Prosperity Life Group. National Western's trading activity is near its 52-week high, with the price hovering around 99.65% of this peak, signaling strong investor confidence in the company's prospects.
For readers interested in a deeper analysis and additional insights, there are four more InvestingPro Tips available on National Western Life Group, Inc., which can be accessed at https://www.investing.com/pro/NWLI. To enhance your investment research experience, use the promo code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.
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