Item 1.01 Entry into a Material Definitive Agreement

On December 31, 2020, National Western Life Insurance Company (the "Company"), a wholly owned subsidiary of National Western Life Group, Inc., entered into a Funds Withheld Coinsurance Agreement (the "Agreement") with Prosperity Life Assurance Limited ("Prosperity"), a reinsurer organized under the Laws of Bermuda. Pursuant to the Agreement, the Company agreed to cede, on a coinsurance with funds withheld basis, a specified quota share of certain liabilities pertaining to a group of fixed and payout annuity contracts issued by the Company on or before December 31, 2020, along with certain supplementary contracts issued by the Company upon the annuitization of such annuity contracts. The amount of statutory reserve liabilities ceded by the Company to Prosperity under the Agreement approximates $1.7 billion.

As consideration for Prosperity's agreement to provide reinsurance pursuant to the Agreement, the Company transferred into a funds withheld account permitted assets approximating the statutory reserve liabilities ceded to Prosperity. In accordance with the Agreement and in order to provide additional security for Prosperity's obligations under the Agreement, the parties established a trust account for the benefit of the Company in which Prosperity will maintain certain assets and grant the Company a first priority security interest in such assets.

The foregoing descriptions are only a summary of the material provisions of the Agreement and are qualified in their entirety by reference to the Agreement, a copy of which is filed as Exhibit 10(ac) to this Current Report on Form 8-K and is incorporated by reference herein. Pursuant to Item 601 of Regulation S-K, the Company has omitted the schedules and exhibits to the Agreement and has redacted certain confidential portions of the Agreement.

Item 9.01. Financial Statements and Exhibits.



(d) Exhibits

   Exhibit
    Number                                       Description

                        Funds Withheld Coinsurance Agreement between National Western
                        Life Insurance Company And Prosperity Life Assurance Limited
    10(ac)              effective as of December 31, 2020 (redacted)

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