In This Article:
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Net Income: $255 million or $3.01 per share, compared to $254 million or $2.67 per share a year ago.
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Net Operating Income: $259 million or $3.07 per share, a 10% increase from a year ago.
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Return on Equity (GAAP): 19% through March 31.
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Book Value per Share (Excluding AOCI): $87.92, up 11% from a year ago.
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Life Insurance Premium Revenue: Increased 3% to $830 million.
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Life Underwriting Margin: $337 million, up 9% from a year ago.
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Health Insurance Premium Revenue: Grew 8% to $370 million.
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Health Underwriting Margin: Down 10% to $85 million.
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Administrative Expenses: $88 million for the quarter.
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American Income Life Premiums: Up 6% to $438 million.
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Liberty National Life Premiums: Grew 6% to $96 million.
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Family Heritage Health Premiums: Increased 9% to $112 million.
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Direct-to-Consumer Life Premiums: Down 1% to $246 million.
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United American Health Premiums: Increased 13% to $160 million.
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Excess Investment Income: $36 million, down approximately $8 million from a year ago.
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Net Investment Income: $281 million, down 1% from a year ago.
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Share Repurchases: Approximately 1.5 million shares for $177 million at an average price of $121.70 per share.
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RBC Ratio: 316% as of year-end 2024.
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Net Operating Earnings Guidance: Estimated range of $13.45 to $14.05 per diluted share for 2025.
Release Date: May 01, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Globe Life Inc (NYSE:GL) reported a net operating income increase of 10% from the previous year, reaching $259 million or $3.07 per share.
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Life insurance premium revenue grew by 3% to $830 million, with a 9% increase in life underwriting margin driven by premium growth and lower policy obligations.
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The company expects life premium revenue to grow around 4% for the year, with life underwriting margins anticipated to be between 42% and 44%.
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Health insurance premium revenue increased by 8% to $370 million, despite a decrease in health underwriting margin due to higher claim costs.
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Globe Life Inc (NYSE:GL) repurchased approximately 1.5 million shares for $177 million, returning a total of $197 million to shareholders in the first quarter.
Negative Points
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Health underwriting margin decreased by 10% to $85 million, primarily due to higher claim costs in United American resulting from increased utilization.
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Administrative expenses rose to $88 million, driven by higher information technology, employee, and legal costs.
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Net investment income decreased by 1% from the previous year, impacted by lower short-term interest rates.
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The direct-to-consumer division saw a 1% decline in life premiums and a 12% drop in net life sales due to reduced marketing spend and higher distribution costs.
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The company faces ongoing inquiries from the SEC and DOJ, with no material developments to disclose at this time.