McKinney, Texas-based Globe Life Inc. (GL) provides various life and supplemental health insurance products and annuities to lower-middle and middle-income families. With a market cap of approximately $11.9 billion, Globe Life operates through Life Insurance, Supplemental Health Insurance, Annuities, and Investments segments. Companies worth $10 billion or more are generally described as "large-cap stocks." GL fits right into that category, with its market cap exceeding this threshold, reflecting its subs ...

Core Insights - Globe Life Inc. (GL) shares are trading at a discount compared to the Zacks Insurance - Accident and Health industry, with a forward price-to-earnings ratio of 9.58X versus the industry average of 12.4X [1] - The company has experienced a year-to-date share price increase of 28.1%, outperforming the industry, sector, and S&P 500 Composite, which grew by 5.3%, 13.6%, and 13.4% respectively [3] - The Zacks Consensus Estimate for GL's 2025 revenues is $6.04 billion, reflecting a year-over-year growth of 4.6%, while the earnings per share for the current year is estimated at $14.43, up 16.7% from the previous year [6] Financial Performance - Globe Life has a market capitalization of $11.6 billion and an average trading volume of 0.6 million shares over the last three months [3] - The average target price for GL, based on 13 analysts, is $160.15 per share, indicating a potential upside of 13.7% from the last closing price [9] - The return on equity (ROE) for the trailing 12 months is 21.2%, surpassing the industry average of 15%, and the return on invested capital is 12.5%, compared to the industry average of 7.3% [11] Growth Drivers - Globe Life's growth is driven by a focus on niche markets and an extensive distribution network, leading to stronger premiums at American Income Life and stable growth at Liberty National [12] - The company anticipates mid-single-digit net life sales growth at American Income Life and Liberty National for 2025, with double-digit growth expected from Family Heritage and United American [14] - Investment income has seen a compound annual growth rate of 6% over the past three years, supported by higher invested assets and improved yields [15] Challenges - Rising expenses, including policyholder benefits and other operating costs, are putting pressure on margins, necessitating close monitoring of profitability [16] - Globe Life's long-term debt has increased, resulting in a debt-to-capital ratio of 33.99, significantly above the industry average of 24.98, which may affect its ability to cover interest obligations [17] - The company has increased its dividend five times over the past five years, with a current payout ratio of 8%, emphasizing shareholder value creation [18] Conclusion - Globe Life is leveraging its niche focus and agency expansion to strengthen its core business, but rising expenses and increasing debt levels present challenges to profitability and financial stability [19]

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Industry Overview - The Zacks Accident and Health Insurance industry is expected to benefit from increased underwriting exposure, with companies like Aflac, Trupanion, and Globe Life likely to be driven by prudent underwriting standards [1] - The industry has maintained profitability due to solid reserves, prudent claims management, stable loss trends, and fewer claims, although a softer performance is predicted for 2025 [2] - The global workers' compensation insurance market is projected to grow significantly between 2024 and 2032, driven by rising awareness of the benefits of coverage [3] Trends Impacting the Industry - Pricing pressure is anticipated to continue due to inflation, rising medical costs, and demographic changes, with healthcare spending expected to increase by 5.4% annually through 2028 [4] - Claims frequency is improving due to better safety measures and working conditions, which is expected to enhance the industry's performance [5] - The adoption of technology, including AI and data analytics, is accelerating, potentially reducing workers' compensation claim expenses by about 45% [6] Industry Performance - The Zacks Accident and Health Insurance industry currently holds a Zacks Industry Rank of 227, placing it in the bottom 7% of 251 Zacks industries, indicating weak near-term prospects [7][8] - The industry has underperformed compared to the Finance sector and the Zacks S&P 500 composite, with a year-to-date gain of 4.5% compared to 12.2% and 10.1% respectively [11] Current Valuation - The industry is trading at a trailing 12-month price-to-book (P/B) ratio of 1.82X, significantly lower than the Zacks S&P 500 composite's 8.42X and the sector's 4.26X [14] Company Highlights - **Aflac**: Offers voluntary supplemental health and life insurance products, with a focus on strategic growth investments and digital solutions. The consensus estimate for 2025 earnings indicates a decrease of 5.3%, but an increase of 7% is expected for 2026 [19][20] - **Trupanion**: Provides pet insurance in a large but underpenetrated market, with a consensus estimate for 2025 earnings indicating a 252.2% increase. The company has a Growth Score of A and has seen significant upward revisions in earnings estimates [23][24] - **Globe Life**: Offers individual life and supplemental health insurance, with positive revenue trends driven by premium growth. The consensus estimates for 2025 and 2026 earnings indicate increases of 15.8% and 5.4% respectively [27][29]

Group 1: Essential Utilities - Essential Utilities has a dividend yield of 3.50% and an annual dividend of $1.37, with a dividend increase track record of 32 years and a payout ratio of 58.80% [3][5] - The company reported a 35% year-over-year increase in GAAP EPS, driven by its gas and water businesses and operational efficiency, particularly in Texas [4] - Essential Utilities announced a 5.25% increase in its dividend, continuing its tradition of over three decades of dividend increases, indicating strong earnings growth potential [5] Group 2: Globe Life - Globe Life has a dividend yield of 0.77% and an annual dividend of $1.08, with a dividend increase track record of 20 years and a low payout ratio of 8.63% [7][10] - The company reported a net operating income of $271 million for the latest quarter, marking a 10% year-over-year improvement, and raised its full-year earnings guidance [8] - Globe Life has engaged in significant share buybacks, spending approximately $226 million in the second quarter and planning up to $650 million in repurchases through 2025 [9] Group 3: NetEase - NetEase has a dividend yield of 1.66% and an annual dividend of $2.27, with a payout ratio of 30.72% [11] - Despite facing potential downside of -9.5%, most analysts still view NetEase shares as a Buy, highlighting its successful games segment driven by popular titles [12]

Core Viewpoint - Globe Life's second-quarter 2025 earnings report showed strong performance with net operating income surpassing estimates, driven by increased life insurance underwriting income and premium revenues [2][3][4]. Financial Performance - The company reported a net operating income of $3.27 per share, exceeding the Zacks Consensus Estimate by 0.6% and reflecting a 10.1% year-over-year improvement [2]. - Total premium revenues reached $1.2 billion, marking a 4% increase year over year, primarily due to higher life and health insurance premiums [3]. - Operating revenues were $1.5 billion, up 3.2% from the previous year, although it missed the Zacks Consensus Estimate by 0.4% [3]. Underwriting and Investment Income - Total insurance underwriting income increased by 4% year over year to $354.2 million, driven by higher life underwriting income [4]. - Net investment income decreased by 1% year over year to $282.2 million, while excess investment income fell 19% year over year to $34.8 million [3][4]. Expense Management - Administrative expenses rose by 4.7% year over year to $86 million, contributing to a significant 89% increase in total benefits and expenses to $1.16 billion [5]. - The increase in expenses was attributed to higher policyholder benefits, acquisition costs, commissions, and other operating expenses [5]. Segment Performance - Life insurance premium revenues increased by 3.1% year over year to $840 million, with notable growth from distribution channels like American Income and Liberty National [6]. - Health insurance premium revenues rose by 8% year over year to $378 million, driven by higher premiums from various channels [7]. Shareholder Value - Shareholders' equity, excluding AOCI, decreased by 0.2% year over year to $7.4 billion, while book value per share increased by 9.6% to $90.26 [8]. - The company repurchased 1.9 million shares worth $226 million during the reported quarter [9]. Future Outlook - Globe Life projects net operating income for the year ending December 31, 2025, in the range of $14.25 to $14.65 per share [10]. - There has been a 20.32% upward shift in consensus estimates over the past month, indicating positive sentiment among investors [11]. - The stock currently holds a Zacks Rank 3 (Hold), suggesting an expectation of in-line returns in the coming months [13].

Core Insights - Globe Life Inc. (GL) shares have increased by 39.8% over the past year, significantly outperforming the industry and broader market indices [1][7] - The company has a market capitalization of $11.01 billion and an average trading volume of 0.6 million shares over the last three months [1] - Globe Life's earnings have surpassed estimates in three of the last four quarters, with an average beat of 2.77% [2] Performance Metrics - The stock is currently trading above its 50-day simple moving average of $127.32, indicating strong upward momentum [3] - Globe Life's forward price-to-earnings ratio is 9.19X, lower than the industry average of 12.16X, suggesting the stock is trading at a discount [8] - The trailing 12-month return on equity for Globe Life is 21.2%, exceeding the industry average of 15% [13] Growth Projections - The Zacks Consensus Estimate projects a 15.7% year-over-year increase in earnings per share for 2025, with revenues expected to reach $6.04 billion, reflecting a 4.5% improvement [9] - Analysts have raised earnings estimates for 2025 and 2026, with a 5.3% and 1% increase in consensus estimates, respectively, over the past 30 days [10] Revenue Drivers - Globe Life's revenue growth is supported by premium increases in its Life and Health Insurance segments, as well as net investment income [15] - The American Income and Liberty National divisions are expected to drive future top-line growth, with net life and health sales projected to grow in the mid-teens [16][17] Financial Strength - The company maintains a strong liquidity position and has targeted a consolidated RBC ratio of 300% to 320% for 2025, indicating financial stability [18] - Globe Life has consistently increased its dividend over the past eight years, with a compound annual growth rate (CAGR) of 7% [19] Investment Appeal - Globe Life's combination of higher sales, improved capital efficiency, and attractive valuations positions it as an appealing investment opportunity [20][22] - The stock has a favorable VGM Score of B, indicating strong value, growth, and momentum compared to peers [20]

Core Viewpoint - Globe Life Inc. has announced the dual listing of its common stock on NYSE Texas, while maintaining its primary listing on the New York Stock Exchange, indicating a strategic move to strengthen its presence in Texas [1][2]. Company Overview - Globe Life is headquartered in McKinney, Texas, and employs over 16,000 insurance agents and 3,600 corporate employees [3]. - The company issues more life insurance policies than any other life insurance company in the United States, with over 17 million policies in force [3]. - Globe Life's subsidiaries include American Income Life Insurance Company, Family Heritage Life Insurance Company of America, Globe Life And Accident Insurance Company, Liberty National Life Insurance Company, and United American Insurance Company [3]. Strategic Importance - The dual listing on NYSE Texas reflects Globe Life's commitment to the Texas community, where its headquarters is located [2]. - The relationship with the New York Stock Exchange is emphasized as fundamental to the company's financial strength [2].

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark one) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2025 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _____ to ________ Commission File Number: 001-08052 GLOBE LIFE INC. (Exact name of registrant as specified in its charter) 3700 South Stonebr ...