National Western Life Insurance Company
Climate Impact & Sustainability Data (2020-12-31 to 2022-06-30)
Reporting Period: 2020-12-31 to 2022-06-30
Environmental Metrics
ESG Focus Areas
- Climate change
- Governance
Governance Achievements
- Established a formal ERM framework in line with industry standards.
- Established a Risk Management Committee (RMC) and identified a Chief Risk Officer (CRO).
Climate Goals & Targets
Environmental Challenges
- Elevated regulatory risk due to domestic fixed indexed annuity and international life insurance exposures.
- Intense competition in the fixed indexed annuity market.
Mitigation Strategies
- Utilizes an effective hedging program to mitigate fixed indexed annuity risk.
- Entered into an annuity reinsurance agreement with Prosperity Reinsurance, covering approximately $1.7 billion in fixed annuity reserves.
- Reinsures 20% of inforce life insurance business with highly rated counterparties (SCOR, RGA, Hannover Life).