Globe Life(US:GL) ZACKS·2025-05-01 16:05Core Insights - Globe Life Inc. reported a first-quarter 2025 net operating income of $3.07 per share, which missed the Zacks Consensus Estimate by 5.2%, but improved 10% year over year due to higher insurance underwriting income [1] - The company experienced a 5% year-over-year increase in total premium revenues, reaching $1.2 billion, primarily driven by higher premiums from Life and Health insurance [2] - Net investment income decreased by 1% year over year to $280.6 million, while operating revenues rose 3.7% to $1.5 billion, attributed to growth in Life and Health insurance premiums [2] Financial Performance - Excess investment income, a profitability measure, fell 18% year over year to $35.8 million, while total insurance underwriting income increased by 4% to $336.3 million, mainly due to higher Life underwriting income [3] - Total benefits and expenses rose 5.7% year over year to $1.1 billion, driven by increased policyholder benefits and various operational costs [4] - Administrative expenses increased by 8.8% year over year to $87.5 million [3] Segmental Results - Life insurance premium revenues grew by 3% year over year to $829.8 million, supported by higher premiums from distribution channels like American Income and Liberty National, both of which grew by 6% [5] - Health insurance premium revenues increased by 8% year over year to $369.7 million, with net health sales rising 24% to $67.2 million, although underwriting margins decreased by 10% [6] Shareholder Information - As of March 31, 2025, shareholders' equity, excluding accumulated other comprehensive income (AOCI), decreased by 1.5% year over year to $7.4 billion, while book value per share, excluding AOCI, increased by 11.2% to $87.92 [7] - The operating return on equity, excluding AOCI, was 14.3%, contracting by 30 basis points year over year [7] Share Repurchase - Globe Life repurchased 1.5 million shares worth $177 million during the reported quarter [9] Future Outlook - The company projects net operating income between $13.45 and $14.05 per diluted common share for the year ending December 31, 2025, reaffirming earlier guidance [10]