National Western 2Q profit falls

AUSTIN, Texas

National Western life insurance co. said Friday that its second quarter net income fell 34 percent as higher costs outweighed a sales leap.

Net profit fell to 13.8 million $ or $3.90 per share, compared with 20.8 million $ or $5.90 per share.

The company 2011 more deferred costs in the first half of $ 15 million compared to the same period of last year, due to an accounting with the "most" in the second quarter recognized, the company said.

Sales rose 45 percent to $ 140.2 million of 96.8 million $ last year boosted by much less realised and unrealised losses on index options.

Investment portfolio of the company's positive contributions to national Western life net income and revenue in 2011 was President Ross R. Moody said in a statement.

"The low interest rate environment and developing credit market situation given meagre economic growth and Government fiscal activities continue to challenge in our fixed-income portfolio management is, but we are maintaining our conservative disciplines and the course to stay", he said.