Globe Life (GL) Up 3.7% Since Last Earnings Report: Can It Continue?

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]