Key Takeaways Globe Life shares have gained 44% in the past year compared with the industry's growth of 26.9%. GL targets a 300% to 320% consolidated RBC ratio for 2025, supporting financial strength. The American Income and Liberty National divisions are expected to fuel future top-line growth.Shares of Globe Life Inc. (GL) have gained 44% in the past year, outperforming its industry, the Finance sector and the Zacks S&P 500 composite’s growth of 26.9%, 19.9% and 11.4%, respectively. The insurer has a ma ...

Financial Performance - Net income for the three months ended March 31, 2025, was $255 million, a slight increase from $254 million in the same period in 2024[230]. - Total premium income rose 5% to $1.2 billion for the three months ended March 31, 2025, compared to the prior year[243]. - Net operating income decreased 2% to $259 million, impacted by an 18% decline in excess investment income[231]. - Total net sales increased 6% to $216 million, with an average producing agent count rising 5% over the prior year[228]. - For the three months ended March 31, 2025, total premium and policy charges increased by 3% to $829.9 million compared to $804.3 million in the same period of 2024[255]. - Total health net sales for the three months ended March 31, 2025, were $67.237 million, a 24% increase from $54.400 million in the same period in 2024[300]. Premium Income - Life insurance premium income increased 3% to $830 million, while life underwriting margin increased to $337 million, up 9% from $309 million in 2024[244]. - Health insurance premium income increased 8% to $370 million, but health underwriting margin declined to $85 million, down 10% from $94 million in 2024[245]. - Health premium accounted for 31% of total premium in 2025, while the health underwriting margin declined to $85 million from $94 million in the prior year[284]. - The life insurance segment contributed 69% of total premium and 80% of total underwriting margin in 2025[253]. Investment Income - Excess investment income declined 18% to $35.9 million, reflecting lower earned yields on investments[246]. - Net investment income for the three months ended March 31, 2025, was $281 million, a 1% decrease from the previous year, while mean invested assets increased by 1%[322]. - The earned yield on commercial mortgage loans decreased to 6.53% from 8.70% in the prior year, attributed to lower floating rates and loans in non-accrual status[322]. - Excess investment income for Q1 2025 was $35.870 million, down 18% from $43.785 million in Q1 2024[318]. Shareholder Returns - The company repurchased 1.5 million shares at a total cost of $177 million, averaging $121.70 per share[247]. - Share repurchases in Q1 2025 totaled $263,170 thousand, significantly higher than $23,529 thousand in Q1 2024, driven by favorable market conditions and higher excess cash flow[386]. - The company has utilized $10.5 billion for share repurchases since the program's inception in 1986, indicating a long-term commitment to returning value to shareholders[383]. Operating Expenses - Total operating expenses increased by $15,532 thousand, or 17%, compared to the same period in 2024, primarily due to higher insurance administrative expenses[380]. - Insurance administrative expenses as a percentage of premium increased to 7.3% for the three months ended March 31, 2025, compared to 7.0% for the same period in 2024[380]. Cash Flow and Liquidity - Consolidated net cash inflows from operations were $432 million in Q1 2025, compared to $351 million in Q1 2024, reflecting a year-over-year increase of approximately 23%[404]. - Cash and short-term investments increased to $366 million at March 31, 2025, up from $250 million at December 31, 2024[405]. - The company expects to maintain target capital ratios through liquid assets, internally-generated cash flow, and the credit facility[403]. - The company has $17.5 billion in fixed income securities available for sale, providing a buffer for unexpected liquidity needs[405]. Investment Strategy - Globe Life's investment strategy focuses on high-quality fixed maturities, with a significant portion of the portfolio consisting of investment-grade securities[339]. - The company plans to continue executing its investment strategy by seeking assets that meet quality objectives while maximizing risk-adjusted returns[345]. - The total fixed maturity portfolio had a fair value of $17.5 billion, an increase from $17.2 billion at December 31, 2024[366]. Debt and Financing - The total long-term debt remained stable at $2.3 billion as of March 31, 2025, consistent with the previous reporting period[406]. - The annualized interest rate on commercial paper was 5.13% as of March 31, 2025, slightly down from 5.22% at December 31, 2024[400]. - The Parent Company had $476 million of additional borrowing capacity under its credit facility as of March 31, 2025, down from $561 million a year earlier[400].

Core Insights - Globe Life Inc. reported a first-quarter 2025 net operating income of $3.07 per share, which missed the Zacks Consensus Estimate by 5.2%, but improved 10% year over year due to higher insurance underwriting income [1] - The company experienced a 5% year-over-year increase in total premium revenues, reaching $1.2 billion, primarily driven by higher premiums from Life and Health insurance [2] - Net investment income decreased by 1% year over year to $280.6 million, while operating revenues rose 3.7% to $1.5 billion, attributed to growth in Life and Health insurance premiums [2] Financial Performance - Excess investment income, a profitability measure, fell 18% year over year to $35.8 million, while total insurance underwriting income increased by 4% to $336.3 million, mainly due to higher Life underwriting income [3] - Total benefits and expenses rose 5.7% year over year to $1.1 billion, driven by increased policyholder benefits and various operational costs [4] - Administrative expenses increased by 8.8% year over year to $87.5 million [3] Segmental Results - Life insurance premium revenues grew by 3% year over year to $829.8 million, supported by higher premiums from distribution channels like American Income and Liberty National, both of which grew by 6% [5] - Health insurance premium revenues increased by 8% year over year to $369.7 million, with net health sales rising 24% to $67.2 million, although underwriting margins decreased by 10% [6] Shareholder Information - As of March 31, 2025, shareholders' equity, excluding accumulated other comprehensive income (AOCI), decreased by 1.5% year over year to $7.4 billion, while book value per share, excluding AOCI, increased by 11.2% to $87.92 [7] - The operating return on equity, excluding AOCI, was 14.3%, contracting by 30 basis points year over year [7] Share Repurchase - Globe Life repurchased 1.5 million shares worth $177 million during the reported quarter [9] Future Outlook - The company projects net operating income between $13.45 and $14.05 per diluted common share for the year ending December 31, 2025, reaffirming earlier guidance [10]

Financial Data and Key Metrics Changes - In Q1 2025, net income was $255 million or $3.01 per share, compared to $254 million or $2.67 per share a year ago, indicating a slight increase in profitability [5] - Net operating income for the quarter was $259 million or $3.07 per share, a 10% increase from the previous year, slightly exceeding internal projections [5] - Return on equity as of March 31 was 19%, with book value per share at $64.5, while excluding accumulated other comprehensive income (AOCI), return on equity was 14.1% and book value per share was $87.92, up 11% from a year ago [5] Business Line Data and Key Metrics Changes - Life insurance premium revenue increased by 3% year-over-year to $830 million, with life underwriting margin rising 9% to $337 million due to premium growth and lower policy obligations [5][6] - Health insurance premium revenue grew by 8% to $370 million, but health underwriting margin decreased by 10% to $85 million due to higher claim costs [6] - American Income Life saw life premiums rise 6% to $438 million, with a life underwriting margin up 5% to $196 million [8] - Liberty National's life premiums grew 6% to $96 million, while health sales decreased by 5% to $7 million [10] - Family Heritage's health premiums increased by 9% to $112 million, with health underwriting margin up 10% to $39 million [11] Market Data and Key Metrics Changes - United American General Agency's health premiums increased by 13% to $160 million, but health underwriting margin fell to $2 million due to higher claim costs [13] - The average producing agent count across various divisions showed growth, with American Income up 3% and Liberty National up 8% year-over-year [9][10] Company Strategy and Development Direction - The company anticipates life premium revenue growth of around 4% for the year, with health premium revenue expected to grow between 7.5% and 8.5% [6] - The focus remains on managing rising advertising and distribution costs while maximizing underwriting margin dollars on new sales [12] - The company plans to maintain a consolidated risk-based capital (RBC) ratio within the targeted range of 300% to 320% [29] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving the midpoint of EPS guidance for 2025, citing favorable mortality trends and expected remeasurement gains [42][44] - The company is well-positioned to manage through economic uncertainties, with a strong capital position and a conservative investment philosophy [24][29] - There is an expectation of elevated health obligations due to recent claim trends, but management believes they can manage these through rate increases [33] Other Important Information - The company repurchased approximately 1.5 million shares for $177 million in Q1 2025, returning a total of $197 million to shareholders [26] - Legal proceedings included an estimate for settlements related to outstanding litigation, but these are not indicative of future performance [78] Q&A Session Summary Question: Outlook for Health margins and timing of rate actions - Management indicated that most rate increases will be effective at the beginning of Q2, expecting margins for UAGA to be in the 5% to 7% range for the year [36] Question: Confidence in EPS guidance amid tough comps - Management reaffirmed confidence in the EPS guidance range, citing favorable mortality trends and expected remeasurement gains [42][44] Question: Increase in health usage and claims - Management noted that utilization is the primary driver of increased claims, with actions being taken to mitigate costs related to specific procedures [96][100] Question: Capital return strategy and commercial paper reduction - The company plans to maintain a normal capital return strategy but may front-load buybacks depending on market conditions [57] Question: Legal proceedings and regulatory matters - The increase in legal expenses is not indicative of future performance and is common in the insurance industry [78]

Globe Life (GL) Q1 2025 Earnings Call May 01, 2025 12:00 PM ET Company Participants Stephen Mota - Senior Director - IRFrank Svoboda - Co-Chairman & Co-CEOJ. Matthew Darden - Co-Chairman and Co-CEOThomas Kalmbach - Executive VP & CFOJack Matten - Vice President Equity ResearchElyse Greenspan - Managing DirectorAndrew Kligerman - Managing DirectorWilma Burdis - DirectorThomas Gallagher - Senior Managing DirectorRyan Krueger - Managing Director Conference Call Participants Jimmy Bhullar - Equity Research Anal ...

Globe Life (GL) came out with quarterly earnings of $3.07 per share, missing the Zacks Consensus Estimate of $3.24 per share. This compares to earnings of $2.78 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -5.25%. A quarter ago, it was expected that this life and health insurance company would post earnings of $3.10 per share when it actually produced earnings of $3.14, delivering a surprise of 1.29%.Over the last four quar ...

GLOBE LIFE INC. REPORTS First Quarter 2025 Results McKinney, TX, April 30, 2025—Globe Life Inc. (NYSE: GL) reported today that for the quarter ended March 31, 2025, net income was $3.01 per diluted common share, compared with $2.67 per diluted common share for the year-ago quarter. Net operating income was $3.07 per diluted common share, above management's expectations, compared with $2.78 per diluted common share for the year-ago quarter. HIGHLIGHTS: Note: As used in the earnings release, "Globe Life," the ...

MCKINNEY, Texas, April 30, 2025 /PRNewswire/ -- Globe Life Inc. (NYSE: GL) reported today that for the quarter ended March 31, 2025, net income was $3.01 per diluted common share, compared with $2.67 per diluted common share for the year-ago quarter. Net operating income was $3.07 per diluted common share, above management's expectations, compared with $2.78 per diluted common share for the year-ago quarter.HIGHLIGHTS: Net income as an ROE was 19.0% for the three months ended March 31, 2025. Net operating i ...

MCKINNEY, Texas, April 15, 2025 /PRNewswire/ -- Globe Life Inc. (NYSE: GL) announces the live audio webcast of its 2025 Annual Meeting of Shareholders, on Thursday, April 24, 2025 at 10:00am Central.To register online to attend the meeting: Go to proxypush.com/GL. Registered and beneficial shareholders - Enter the control number found in the upper right-hand corner of your proxy card. Guests may register to attend and listen to the meeting. After registering, you will receive a confirmation email and anot ...

MCKINNEY, Texas, April 10, 2025 /PRNewswire/ -- Globe Life Inc. (NYSE: GL) will announce its First Quarter 2025 financial results after the market closes on Wednesday, April 30, 2025. At that time, a copy of the Company's First Quarter 2025 earnings press release and any other financial and statistical information about the quarter will be available on the Company's website, https://investors.globelifeinsurance.com/, under Financial Reports and Other Financial Information.A live conference call will broadca ...