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 ...

[First Quarter 2025 Financial Performance Overview](index=1&type=section&id=First%20Quarter%202025%20Results) [Results of Operations](index=2&type=section&id=RESULTS%20OF%20OPERATIONS) In the first quarter of 2025, Globe Life reported a net income of $3.01 per diluted common share, a 13% increase year-over-year. Net operating income, a key management metric, rose by 10% to $3.07 per diluted common share, exceeding management's expectations. This growth was primarily driven by a 17% increase in insurance underwriting income per share, although partially offset by lower excess investment income and higher interest on debt Q1 2025 Key Per Share Financial Metrics | Metric | Q1 2025 | Q1 2024 | % Change | | :--- | :--- | :--- | :--- | | Net Income per Diluted Share | $3.01 | $2.67 | 13% | | Net Operating Income per Diluted Share | $3.07 | $2.78 | 10% | | Insurance Underwriting Income per Share | $3.98 | $3.41 | 17% | | Excess Investment Income per Share | $0.42 | $0.46 | (9)% | Q1 2025 Operating Summary (in thousands) | Operating Summary | Q1 2025 | Q1 2024 | % Change | | :--- | :--- | :--- | :--- | | Insurance underwriting income | $336,315 | $324,361 | 4% | | Excess investment income | $35,870 | $43,785 | (18)% | | Net operating income | $259,337 | $264,099 | (2)% | | Net income | $254,563 | $254,217 | 0% | - The company incurred costs of **$4.8 million** related to the settlement of certain litigation claims, which impacted net income[7](index=7&type=chunk)[8](index=8&type=chunk) [Reconciliation of GAAP and Non-GAAP Measures](index=3&type=section&id=MANAGEMENT%20VS.%20GAAP%20MEASURES) The company's net income as a return on equity (ROE) was 19.0% for Q1 2025, compared to 21.3% in the prior year. The non-GAAP measure of net operating income as an ROE (excluding AOCI) was 14.1%, slightly down from 14.3%. Book value per share increased significantly to $64.50 from $53.03 year-over-year, while book value per share excluding AOCI, a key management metric, grew to $87.92 from $79.00 Return on Equity (ROE) Comparison | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net income as an ROE | 19.0% | 21.3% | | Net operating income as an ROE (excluding AOCI) | 14.1% | 14.3% | Book Value Per Share Comparison | Metric | March 31, 2025 | March 31, 2024 | | :--- | :--- | :--- | | Book value per share | $64.50 | $53.03 | | Book value per share, excluding AOCI | $87.92 | $79.00 | - Management utilizes non-GAAP measures like shareholders' equity excluding AOCI to better identify trends by removing fluctuations from interest rate changes[12](index=12&type=chunk) [Insurance Operations Analysis](index=4&type=section&id=INSURANCE%20OPERATIONS:) [Overall Insurance Performance](index=4&type=section&id=INSURANCE%20UNDERWRITING%20INCOME) Total insurance premium revenue grew 5% year-over-year to $1.2 billion, with life insurance premiums up 3% and health insurance premiums up 8%. Life insurance constitutes 69% of total premium revenue and 80% of the underwriting margin. Overall insurance underwriting income increased by 4% to $336.3 million, while net health sales saw a strong 24% increase, contrasting with a 1% decline in net life sales Q1 Insurance Premium Revenue (in thousands) | Product Type | Q1 2025 | Q1 2024 | % Change | | :--- | :--- | :--- | :--- | | Life insurance | $829,863 | $804,265 | 3% | | Health insurance | $369,791 | $341,019 | 8% | | **Total** | **$1,199,654** | **$1,145,284** | **5%** | Q1 Insurance Underwriting Income (in thousands) | Segment | Q1 2025 | Q1 2024 | % Change | | :--- | :--- | :--- | :--- | | Life Underwriting Margin | $337,264 | $309,011 | 9% | | Health Underwriting Margin | $84,721 | $93,770 | (10)% | | **Insurance Underwriting Income** | **$336,315** | **$324,361** | **4%** | - The ratio of administrative expenses to premium increased to **7.3%** in Q1 2025 from 7.0% in Q1 2024[20](index=20&type=chunk) [Life Insurance Segment](index=5&type=section&id=LIFE%20INSURANCE%20RESULTS%20BY%20DISTRIBUTION%20CHANNEL) Life insurance premiums increased by 3% to $830 million, driven by 6% growth in both the American Income and Liberty National divisions. However, total net life sales declined by 1%, with a notable 12% drop in the Direct to Consumer channel. Despite the mixed sales results, the total life underwriting margin improved by 9% to $337 million, with the margin percentage rising to 41% from 38% Q1 Life Premium by Distribution Channel (in thousands) | Channel | Q1 2025 | Q1 2024 | % Change | | :--- | :--- | :--- | :--- | | American Income | $437,866 | $414,044 | 6% | | Direct to Consumer | $245,600 | $248,040 | (1)% | | Liberty National | $96,182 | $90,777 | 6% | | **Total** | **$829,863** | **$804,265** | **3%** | Q1 Life Net Sales by Distribution Channel (in thousands) | Channel | Q1 2025 | Q1 2024 | % Change | | :--- | :--- | :--- | :--- | | American Income | $98,555 | $97,195 | 1% | | Direct to Consumer | $25,175 | $28,563 | (12)% | | Liberty National | $22,469 | $21,605 | 4% | | **Total** | **$148,351** | **$149,497** | **(1)%** | Q1 Life Underwriting Margin by Distribution Channel (in thousands) | Channel | Q1 2025 | % of Premium | Q1 2024 | % of Premium | % Change | | :--- | :--- | :--- | :--- | :--- | :--- | | American Income | $196,169 | 45% | $187,068 | 45% | 5% | | Direct to Consumer | $64,200 | 26% | $58,585 | 24% | 10% | | **Total** | **$337,264** | **41%** | **$309,011** | **38%** | **9%** | [Health Insurance Segment](index=6&type=section&id=HEALTH%20INSURANCE%20RESULTS%20BY%20DISTRIBUTION%20CHANNEL) Health insurance operations showed strong top-line growth, with premiums up 8% to $370 million and net sales surging 24% to $67 million. The growth was led by the United American division, which saw a 13% increase in premiums and a 69% jump in net sales. Despite this sales momentum, the total health underwriting margin declined by 10% to $84.7 million, with the margin percentage falling to 23% from 27%, primarily due to a significant drop in United American's margin Q1 Health Premium by Distribution Channel (in thousands) | Channel | Q1 2025 | Q1 2024 | % Change | | :--- | :--- | :--- | :--- | | United American | $159,848 | $141,635 | 13% | | Family Heritage | $112,354 | $103,391 | 9% | | **Total** | **$369,791** | **$341,019** | **8%** | Q1 Health Net Sales by Distribution Channel (in thousands) | Channel | Q1 2025 | Q1 2024 | % Change | | :--- | :--- | :--- | :--- | | United American | $27,708 | $16,423 | 69% | | Family Heritage | $26,816 | $24,966 | 7% | | **Total** | **$67,237** | **$54,400** | **24%** | Q1 Health Underwriting Margin by Distribution Channel (in thousands) | Channel | Q1 2025 | % of Premium | Q1 2024 | % of Premium | % Change | | :--- | :--- | :--- | :--- | :--- | :--- | | United American | $1,617 | 1% | $11,906 | 8% | (86)% | | Family Heritage | $39,249 | 35% | $35,838 | 35% | 10% | | **Total** | **$84,721** | **23%** | **$93,770** | **27%** | **(10)%** | [Agent Productivity](index=7&type=section&id=PRODUCING%20EXCLUSIVE%20AGENT%20COUNT%20RESULTS%20BY%20DISTRIBUTION%20CHANNEL) The company saw growth in its exclusive producing agent force compared to the prior year. The average producing agent count at American Income grew by 3% to 11,510. Liberty National and Family Heritage divisions experienced stronger growth, with agent counts increasing by 8% and 9% respectively Quarterly Average Producing Agent Count | Division | Q1 2025 | Q1 2024 | % Change | | :--- | :--- | :--- | :--- | | American Income | 11,510 | 11,139 | 3% | | Liberty National | 3,688 | 3,419 | 8% | | Family Heritage | 1,417 | 1,295 | 9% | [Investment Portfolio and Strategy](index=7&type=section&id=INVESTMENTS) [Investment Performance](index=7&type=section&id=Excess%20Investment%20Income) Excess investment income, a key measure of the investment segment's performance, decreased by 18% to $35.9 million in Q1 2025. On a per-share basis, it fell 9% to $0.42. This decline was driven by a 1% drop in net investment income coupled with a 2% increase in required interest on policy liabilities Q1 Excess Investment Income (in thousands, except per share) | Metric | Q1 2025 | Q1 2024 | % Change | | :--- | :--- | :--- | :--- | | Net investment income | $280,614 | $282,578 | (1)% | | Interest on policy liabilities | ($244,744) | ($238,793) | 2% | | **Excess investment income** | **$35,870** | **$43,785** | **(18)%** | | **Per share** | **$0.42** | **$0.46** | **(9)%** | - The fixed maturity portfolio earned an annual taxable equivalent effective yield of **5.25%** during Q1 2025, stable compared to 5.24% in the year-ago quarter[43](index=43&type=chunk) [Investment Portfolio Composition](index=8&type=section&id=Investment%20Portfolio) As of March 31, 2025, Globe Life's total investment portfolio stood at $20.0 billion. The portfolio is heavily weighted towards fixed maturities, which comprise 87% of the total at fair value. The quality of the fixed maturity portfolio remains high, with 97% of assets rated as 'investment grade' at both amortized cost and fair value Investment Portfolio Composition as of March 31, 2025 (in thousands) | Asset Class | Amount | % of Total | | :--- | :--- | :--- | | Fixed maturities at fair value | $17,504,967 | 87% | | Other long-term investments | $1,236,624 | 6% | | Policy loans | $708,175 | 4% | | Mortgage loans | $426,174 | 2% | | Short-term investments | $134,066 | 1% | | **Total** | **$20,010,006** | | - At amortized cost, **97%** of the **$19.0 billion** fixed maturity portfolio was rated investment grade. Corporate bonds make up the largest portion at **$15.1 billion**[42](index=42&type=chunk)[43](index=43&type=chunk) - The company is not a party to any credit default swaps and does not participate in securities lending[44](index=44&type=chunk) [Investment Acquisitions](index=9&type=section&id=Fixed%20Maturity%20Acquisitions) During the first quarter, the company acquired $244.8 million in fixed maturities, a decrease from $682.4 million in the prior-year quarter. These new investments have an average annual effective yield of 6.4% and an average rating of A-. The company also invested $52.0 million in other assets, primarily mortgage loans and limited partnerships Q1 Fixed Maturity Acquisitions | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Amount (in thousands) | $244,845 | $682,427 | | Average annual effective yield | 6.4% | 5.9% | | Average rating | A- | A | Q1 Other Investment Acquisitions (in thousands) | Type | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Limited partnerships | $15,831 | $67,498 | | Mortgage loans | $35,621 | $58,406 | | **Total** | **$51,954** | **$139,222** | [Capital Management and Outlook](index=9&type=section&id=SHARE%20REPURCHASE:) [Share Repurchase and Liquidity](index=9&type=section&id=LIQUIDITY/CAPITAL:) Globe Life continued its capital return program by repurchasing 1.5 million shares of its common stock for a total of $177 million during the quarter, at an average price of $121.70 per share. The company reports that its operations generate strong, stable cash flows, ensuring sufficient liquidity at the Parent Company level to meet the capital needs of its insurance subsidiaries - In Q1 2025, the company repurchased **1.5 million** common shares[50](index=50&type=chunk) - The total cost of the share repurchase was **$177 million**, at an average price of **$121.70 per share**[50](index=50&type=chunk) - The company's primary business of writing basic protection life and supplemental health insurance generates strong and stable cash flows, which are not impacted by volatile equity markets[51](index=51&type=chunk) [2025 Earnings Guidance](index=9&type=section&id=EARNINGS%20GUIDANCE%20FOR%20THE%20YEAR%20ENDING%20DECEMBER%2031,%202025:) Globe Life has reaffirmed its full-year 2025 earnings guidance. The company continues to project net operating income to be in the range of $13.45 to $14.05 per diluted common share - The company reaffirmed its previous guidance for the full year ending December 31, 2025[52](index=52&type=chunk) - Projected net operating income per diluted common share for 2025 is between **$13.45** and **$14.05**[52](index=52&type=chunk) [Appendix](index=12&type=section&id=APPENDIX) [GAAP Condensed Consolidated Statements of Operations](index=12&type=section&id=GLOBE%20LIFE%20INC.%20GAAP%20CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20OPERATIONS) The GAAP condensed consolidated statement of operations shows total revenues of $1.48 billion for Q1 2025, an increase from $1.42 billion in Q1 2024. Net income remained flat at approximately $254 million for both periods. On a per-share basis, diluted net income was $3.01, up from $2.67 in the prior-year quarter Q1 GAAP Condensed Consolidated Statements of Operations (in thousands) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Total premium | $1,199,654 | $1,145,284 | | Total revenue | $1,480,422 | $1,416,139 | | Total benefits and expenses | $1,164,341 | $1,101,216 | | Income before income taxes | $316,081 | $314,923 | | **Net income** | **$254,563** | **$254,217** | | **Diluted net income per common share** | **$3.01** | **$2.67** |

Company Overview - Globe Life Inc. is a holding company that specializes in life and supplemental health insurance targeting the middle-income market [2] - The company distributes its products through various channels, including direct-to-consumer sales and partnerships with exclusive and independent agencies [2] Annual Meeting Announcement - Globe Life Inc. will hold its 2025 Annual Meeting of Shareholders on April 24, 2025, at 10:00 AM Central [1] - The meeting will be accessible via a live audio webcast, and registration is required for both registered and beneficial shareholders as well as guests [1][3] - The meeting will adhere to the company's Shareholders' Rights Policy and Robert's Rules of Order [1]

Financial Results Announcement - Globe Life Inc. will announce its First Quarter 2025 financial results after the market closes on April 30, 2025 [1] - A copy of the earnings press release and other financial information will be available on the company's website [1] Conference Call Details - A live conference call will take place on May 1, 2025, at 12:00pm Eastern [2] - The call can be accessed by phone or online, with a replay available afterwards [2] Company Overview - Globe Life Inc. is a holding company that specializes in life and supplemental health insurance targeting the middle-income market [3] - The company distributes its products through various channels, including direct-to-consumer and both exclusive and independent agencies [3]

Shares of Globe Life Inc. (GL) closed at $130.53 on Wednesday, near its 52-week high of $131.91. This proximity underscores investor confidence. It has the ingredients for further price appreciation. The stock is trading above the 50-day and 200-day simple moving averages (SMA) of $123.24 and $106.07, respectively, indicating solid upward momentum. SMA is a widely used technical analysis tool to predict future price trends by analyzing historical price data.Earnings of Globe Life grew 13.3% in the last five ...

Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use tried-and-true metrics a ...

Core Insights - Globe Life's Q4 2024 net operating income was $3.14 per share, exceeding estimates by 1.3% and showing a 12% year-over-year improvement driven by higher investment and underwriting income [2] - Total operating revenues for Q4 reached $1.4 billion, a 4.4% increase from the previous year, although it missed estimates by 1% [2] - The company reported a total premium revenue of $1.18 billion, up 4.5% year over year, primarily from life and health insurance premiums [3] Financial Performance - Net investment income rose 4% year over year to $282.4 million, while excess investment income increased by 7% to $38.3 million [3] - Total insurance underwriting income grew 3.1% year over year to $337.9 million, attributed to improved life underwriting income [4] - Administrative expenses increased by 18.3% year over year to $91.4 million, contributing to a total benefits and expenses rise of 7% to $1.1 billion [4] Segment Analysis - Life insurance premium revenues increased by 4% year over year to $822.9 million, with net sales rising 11% to $144.9 million [5] - Health insurance premium revenues grew by 7% year over year to $358.3 million, with net health sales increasing by 6% to $73.6 million [6] Shareholder Metrics - Shareholders' equity, excluding AOCI, increased by 1% year over year to $7.34 billion, with book value per share rising 13.4% to $86.40 [7] - The net operating return on equity, excluding AOCI, was 15.1%, expanding by 40 basis points year over year [7] Share Repurchase Activity - Globe Life repurchased 0.33 million shares worth $36 million during the reported quarter [8] Full-Year Performance - For the full year 2024, net operating income was $12.37 per share, a 16% increase year over year, with total operating revenues rising 5.2% to $5.8 billion [10] Future Outlook - The company estimates net operating income for 2025 to be in the range of $13.45-$14.05 per diluted common share [11] - Recent estimates have trended upward, indicating a positive outlook for the stock, which holds a Zacks Rank 2 (Buy) [12][14]

Insurance Premiums - Annualized premium in force for life insurance in 2024 reached $3,299,261,000, an increase of 3.5% from $3,185,745,000 in 2023[16] - Direct to Consumer channel for life insurance reported $922,508,000 in annualized premium in force in 2024, a slight decrease from $933,057,000 in 2023[16] - Health insurance annualized premium in force increased to $1,475,846,000 in 2024, up from $1,385,301,000 in 2023, representing a growth of 6.5%[22] - Limited-benefit plans accounted for 56% of the total supplemental health insurance premium in force in 2024, totaling $824,844,000[24] Agent and Employee Information - The company has 11,741 average producing agents in the U.S., Canada, and New Zealand for American Income Life Insurance Company[14] - The average producing agents for Liberty National Life Insurance Company totaled 3,664 in the U.S.[14] - As of December 31, 2024, Globe Life had 3,732 employees, a 3% increase from the previous year, primarily to support recent growth and lower attrition levels[43] - The company engaged over 16,400 independently-contracted insurance agents, which is critical for supporting sales growth in agency operations[43] - The company's board of directors consists of 9 independent members, with 56% being women and 33% being racial/ethnic minorities as of December 31, 2024[44] - The employee demographic as of December 31, 2024, included 51% White, 25% Black or African American, and 13% Hispanic or Latino[44] - The company emphasizes a diverse and inclusive workforce to achieve outstanding results, with 68% of employees being Baby Boomers and 44% Millennials[44] Investment and Financial Risks - Globe Life's investments consist predominantly of high-quality, investment-grade securities, with approximately 88% of invested assets in fixed maturities as of December 31, 2024[30] - Globe Life's investment portfolio is predominantly in fixed income, exposing it to market and credit risks, which could impact net investment income[61] - Changes in interest rates could negatively affect the company's income and liquidity, impacting policyholder behavior and investment returns[64][66] - The ability to fund operations is heavily reliant on the surplus and earnings of its insurance subsidiaries, which are subject to regulatory restrictions on dividend payments[68] - Adverse capital and credit market conditions may significantly affect the company's liquidity needs and cost of capital, potentially reducing net income if interest rates increase[72] - The company may need to seek additional financing if current liquidity sources are insufficient, which could be impacted by market conditions and credit availability[73] Regulatory and Legal Risks - The company faces risks related to the misclassification of independent contractors, which could lead to legal and financial consequences[56] - A downgrade by rating agencies could limit the ability of the company's insurance subsidiaries to pay dividends and adversely affect sales of insurance products[79] - Changes in regulations or regulatory scrutiny could materially impact the company's business and financial condition[86] - Negative publicity and allegations against the company could damage its brand and reputation, affecting agent recruitment and product sales[95] - Globe Life has no unresolved SEC staff comments as of December 31, 2024[99] - The company may face challenges in meeting evolving corporate responsibility and sustainability standards, which could impact its reputation and financial performance[97] - Failure to achieve corporate responsibility expectations could lead to scrutiny from regulators, investors, and the public, resulting in potential legal challenges[97] Operational and Market Risks - Variations in mortality, morbidity, and policyholder behavior could materially affect the company's financial condition and results of operations due to reliance on actuarial estimates[78] - Timely premium rate increases for Medicare Supplement insurance are critical; failure to obtain these could negatively impact profitability[80] - The company is exposed to catastrophic events that could significantly impact financial results, particularly in the case of pandemics or natural disasters[81] - The company faces risks related to model errors and limitations, which could lead to financial loss or reputational damage[83] - The company has been targeted by short sellers since April 2024, resulting in a significant decline in stock price and negative publicity, which has damaged its reputation[76]

Core Viewpoint - Kaskela Law LLC is investigating Globe Life Inc. for potential securities fraud and misconduct related to misleading statements made to investors between May 8, 2019, and April 10, 2024 [2][4]. Group 1: Allegations and Complaints - A securities fraud complaint has been filed against Globe Life, alleging that the company and its executives issued materially false and misleading statements in violation of federal securities laws [2]. - The complaint details that Globe Life engaged in widespread insurance fraud, including adding policies to existing users' accounts without consent and underwriting policies for deceased or fictitious individuals [3]. - The report also claims that Globe Life maintained a hostile workplace environment characterized by unchecked sexual harassment, drug use, and sexual assault [3]. Group 2: Financial Impact - Following the allegations reported by Fuzzy Panda, Globe Life's stock price plummeted by $55.76 per share, representing a 53% decrease, closing at $49.17 per share on April 10, 2024, with unusually high trading volume [4]. Group 3: Legal Actions - The investigation aims to determine if Globe Life's board of directors violated securities laws or breached their fiduciary duties in relation to the alleged misconduct [4]. - Shareholders who acquired Globe Life shares before April 11, 2024, are encouraged to contact Kaskela Law LLC for information regarding their legal rights and options [5].

Company Overview - Globe Life Inc. is a Texas-based life insurance company, headquartered in McKinney, TX, with over 15,000 insurance agents and 3,000 corporate employees [9] - The company has a mission to "Make Tomorrow Better" and is committed to uplifting communities and supporting veterans and service members [2][4] - Globe Life issues more life insurance policies than any other company in the U.S., with over 17 million policies in force [9] Recent Partnership - Globe Life has pledged $2 million to the National Medal of Honor Museum Foundation (NMOHMF) in recognition of its commitment to honoring those who have made the ultimate sacrifice [1][4] - The donation will be recognized by naming the stage at the Museum's Neel Kearby Theater after Globe Life [1] - This partnership aligns with Globe Life's purpose-driven mission and reflects its values of service and leadership [2][4] National Medal of Honor Museum - The National Medal of Honor Museum is set to open in March 2025, featuring over 100,000 square feet of space, including 31,000 square feet for Exhibition Galleries [4][6] - The Museum aims to inspire visitors by telling the stories of Medal of Honor recipients in a dynamic and interactive setting [6] - The Museum will serve as a national landmark in Arlington, Texas, commemorating sacrifice, patriotism, and courage [6]