Globe Life Q4 Earnings Surpass Estimates on Higher Premium

Core Insights - Globe Life Inc. reported a fourth-quarter 2024 net operating income of $3.14 per share, exceeding the Zacks Consensus Estimate by 1.3% and showing a 12% year-over-year improvement driven by higher excess investment income and insurance underwriting income [1][2] Financial Performance - The company achieved operating revenues of$ 1.4 billion, a 4.4% increase from the previous year, although it missed the Zacks Consensus Estimate by 1% [2] - Total premium revenues reached $1.18 billion, up 4.5% year over year, primarily due to increased premiums from Life and Health insurance [3] - Net investment income rose 4% year over year to$ 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 [3] Expense Analysis - Administrative expenses surged 18.3% year over year to $91.4 million, contributing to a total benefits and expenses increase of 7% to$ 1.1 billion [4] - The rise in expenses was mainly due to higher policyholder benefits, amortization of deferred acquisition costs, commissions, premium taxes, and other operating expenses [4] Segment Performance - Life insurance premium revenues increased by 4% year over year to $822.9 million, with notable growth from distribution channels like American Income and Liberty National Division [5] - Health insurance premium revenues rose 7% year over year to$ 358.3 million, driven by higher premiums from various segments [6] Shareholder Value - Shareholders' equity, excluding accumulated other comprehensive income, increased by 1% year over year to $7.34 billion as of December 31, 2024 [7] - The book value per share, excluding AOCI, was reported at$ 86.40, reflecting a 13.4% year-over-year increase [7] - Globe Life repurchased 0.33 million shares worth $36 million during the reported quarter [8] Full-Year Overview - For the full year 2024, net operating income was$ 12.37 per share, marking a 16% increase year over year, while total operating revenues rose 5.2% to $5.8 billion [9] Future Outlook - The company estimates net operating income for 2025 to be in the range of$ 13.45 to $14.05 per diluted common share [10]