Globe Life Q3 Earnings Beat Estimates on Solid Underwriting

Core Insights - Globe Life Inc. reported a third-quarter 2025 net operating income of $4.81 per share, exceeding the Zacks Consensus Estimate by 5.9% and reflecting a 38% year-over-year improvement driven by higher insurance underwriting income [1][8]. Financial Performance - Total premium revenues reached $1.2 billion, marking a 5% increase year over year, primarily due to higher premiums from Life and Health insurance [2]. - Operating revenues amounted to $1.5 billion, up 4.1% from the previous year, although it slightly missed the Zacks Consensus Estimate by 0.1% [3]. - Excess investment income decreased by 7% year over year to $38.6 million [3]. - Total insurance underwriting income rose 30% year over year to $503.1 million, attributed to increased Life and Health underwriting income [4]. Segmental Results - Life insurance premium revenues increased by 3% year over year to $844.5 million, driven by higher premiums from distribution channels such as American Income and Liberty National, both of which rose by 5% [5]. - Health insurance premium revenues grew by 9% year over year to $386.5 million, with net health sales increasing by 21% to $71.42 million [6]. Shareholder Metrics - Shareholders' equity, excluding accumulated other comprehensive income (AOCI), increased by 7.5% year over year to $7.66 billion as of September 30, 2025 [7]. - Book value per share, excluding AOCI, rose by 11.5% year over year to $93.63 [7]. - The operating return on equity, excluding AOCI, was 16.6% for the nine months ended September 30, 2025, an increase of 130 basis points year over year [7]. Share Repurchase Activity - Globe Life repurchased shares worth $113 million during the reported quarter [9]. Future Outlook - For the year ending December 31, 2025, Globe Life estimates net operating income between $14.40 and $14.60 per share, with projections for 2026 ranging from $14.60 to $15.30 [10].