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 ...

Core Insights - The U.S. Attorney's Office for the Western District of Pennsylvania has closed its investigation into Globe Life Inc. and American Income Life (AIL), indicating no enforcement action will be taken against them [1] Company Overview - Globe Life Inc. is headquartered in McKinney, Texas, and employs over 16,000 insurance agents and 3,600 corporate employees [2] - The company has issued more life insurance policies than any other life insurance company in the U.S., with over 17 million policies in force [2] - 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 [2]

Core Viewpoint - Globe Life's stock prospects have improved following a positive quarterly earnings report and the resolution of an SEC investigation, leading to a nearly 3% increase in stock price, outperforming the S&P 500 index [1]. Group 1: Analyst Upgrade - CFRA analyst Catherine Seifert upgraded Globe Life's recommendation from hold to buy, raising the price target from $130 to $155 per share [2]. Group 2: SEC Investigation Resolution - The SEC concluded its investigation into Globe Life without recommending enforcement action, which was related to allegations of fraud from short seller reports concerning the company and its subsidiary, American Income Life [4]. Group 3: Q2 Earnings Performance - Globe Life reported a nearly 3% year-over-year revenue increase to $1.48 billion, while net income decreased slightly by 2%, yet still exceeded consensus analyst estimates, indicating stable performance in a conservative industry [6]. - Management provided optimistic guidance regarding anticipated reserve releases in Q3 and subsequent periods, and showed positive developments in underwriting, particularly in mortality categories [5].

Group 1 - Globe Life Inc. received a letter from the SEC notifying that their investigation has concluded without recommending enforcement action against the company [1] - Globe Life is headquartered in McKinney, Texas, and employs over 16,000 insurance agents and 3,600 corporate employees [2] - The company has issued more life insurance policies than any other in the U.S., with over 17 million policies in force [2]

Core Insights - Globe Life Inc. reported a second-quarter 2025 net operating income of $3.27 per share, exceeding the Zacks Consensus Estimate by 0.6% and reflecting a year-over-year increase of 10.1% driven by higher Life insurance underwriting income [1][8] - The company's total premium revenues reached $1.2 billion, marking a 4% increase year over year, primarily due to higher Life and Health insurance premiums [2] - Operating revenues were reported at $1.5 billion, up 3.2% from the previous year, although this figure missed the Zacks Consensus Estimate by 0.4% [2] Financial Performance - Net investment income decreased by 1% year over year to $282.2 million [2] - Excess investment income, a profitability measure, fell 19% year over year to $34.8 million [3] - Total insurance underwriting income increased by 4% year over year to $354.2 million, attributed to higher Life underwriting income [3] Expenses and Benefits - Total benefits and expenses surged 89% year over year to $1.16 billion, driven by increased policyholder benefits and other operating expenses [4] - Administrative expenses rose by 4.7% year over year to $86 million [3] Segment Performance - Life insurance premium revenues increased by 3.1% year over year to $840 million, supported by growth from distribution channels like American Income and Liberty National [5] - Health insurance premium revenues rose by 8% year over year to $378 million, with net health sales increasing by 19% [6] Shareholder Information - As of June 30, 2025, 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 [7] - The company repurchased 1.9 million shares worth $226 million during the reported quarter [10] Future Outlook - Globe Life projects net operating income in the range of $14.25 to $14.65 per share for the year ending December 31, 2025 [11]