Globe Life(US:GL)2025-11-05 21:28Financial Performance - Net income for the nine months ended September 30, 2025, totaled $895 million, a 10% increase from $816 million in the same period in 2024[278]. - Net operating income was $925 million for the nine months ended September 30, 2025, compared to $843 million for the same period in 2024, reflecting a 10% increase[278]. - Total premium income rose 5% to $3.6 billion for the nine months ended September 30, 2025, compared to the prior year[287]. - For the nine months ended September 30, 2025, total premium and policy charges increased by 3% to $2.51 billion compared to $2.44 billion in the same period of 2024[306]. - Health net sales increased by 21% to $207,386 thousand for the nine months ended September 30, 2025, up from $171,391 thousand in 2024[342]. Premium and Underwriting Margins - Life insurance premium income increased 3% to $2.51 billion, while health insurance premium income rose 8% to $1.1 billion over the prior-year period[288][289]. - The life insurance underwriting margin increased by $142 million, driven by premium growth and remeasurement gains, totaling $1.16 billion for the nine months ended September 30, 2025[283]. - Health insurance underwriting margin increased to $291 million for the nine months ended September 30, 2025, up from $281 million in 2024[289]. - The life insurance underwriting margin rose by 14% to $1.16 billion, representing 46% of premium for the nine months ended September 30, 2025, compared to 42% in the prior year[302]. - Direct to Consumer Division's underwriting margin increased to $246.9 million, or 34% of premium, compared to $210.7 million and 28% in 2024[319]. Shareholder Returns and Repurchases - The company repurchased 4.2 million shares of common stock at a total cost of $515 million, averaging $123.97 per share[271][291]. - Share repurchases for the nine months ended September 30, 2025, totaled $684,158,000, with an average price of $125.02 per share[428]. - The company has repurchased a total of $10.8 billion in common shares since the program's inception in 1986[425]. - Projected dividends for shareholders in 2025 are approximately $85 million, consistent with the amount paid in 2024[438]. - Dividends from subsidiaries for the nine months ended September 30, 2025, were $482,091,000, compared to $451,416,000 in 2024[438]. Investment Income and Portfolio - Net investment income for the nine months ended September 30, 2025, was $849 million, a decrease of 1% from the year-ago period, attributed to low growth in invested assets and higher dividend distributions[364]. - Excess investment income declined 15% to $108 million for the nine months ended September 30, 2025, compared to $126 million in 2024[290]. - The effective annual yield rate on the fixed maturity portfolio was 5.27% for the first nine months of 2025, compared to 5.26% a year earlier[364]. - The total fixed maturity portfolio had a fair value of $17.8 billion, an increase from $17.2 billion at December 31, 2024[407]. - The average annual effective yield of the fixed maturity portfolio as of September 30, 2025, was 5.28%, slightly up from 5.25% at the end of 2024[394]. Operating Expenses - Operating expenses for the nine months ended September 30, 2025, increased to $328,601,000, an 11% increase compared to $297,196,000 in 2024[423]. - Insurance administrative expenses totaled $263,363,000, remaining at 7.2% of premium income for both 2025 and 2024[423]. Debt and Liquidity - As of September 30, 2025, the company had $554 million of additional borrowing capacity under its credit facility, an increase from $458 million a year earlier[444]. - The company reduced commercial paper borrowings by $88 million since year-end 2024[451]. - The annualized interest rate on commercial paper decreased to 4.60% as of September 30, 2025, from 5.22% a year earlier[449]. - The updated five-year credit agreement for the credit facility will mature on March 29, 2029, with a capacity of up to $1.25 billion[443].