Globe Life Inc.’s GL first-quarter 2025 net operating income of $3.07 per share missed the Zacks Consensus Estimate by 5.2%. The bottom line, however, improved 10% year over year, driven by higher insurance underwriting income.
The insurer’s results reflected higher premiums across Life and Health insurance, improved insurance underwriting income, offset by higher expenses and lower investment income. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)
Behind the Headlines
Globe Life reported total premium revenues of $1.2 billion, up 5% year over year. This upside was primarily driven by higher premiums from Life and Health insurance.
Net investment income decreased 1% year over year to $280.6 million.
The company reported operating revenues of $1.5 billion, up 3.7% from the year-ago quarter. The improvement was driven by growth in Life and Health insurance premiums.
Globe Life Inc. Price, Consensus and EPS Surprise
Globe Life Inc. Price, Consensus and EPS Surprise
Globe Life Inc. price-consensus-eps-surprise-chart | Globe Life Inc. Quote
Excess investment income, a measure of profitability, decreased 18% year over year to $35.8 million.
Total insurance underwriting income increased 4% year over year to $336.3 million. The increase was attributable to higher Life underwriting income.
Administrative expenses were up 8.8% year over year to $87.5 million.
Total benefits and expenses increased 5.7% year over year to $1.1 billion, primarily due to higher total policyholder benefits, amortization of deferred acquisition costs, commissions, premium taxes, and non-deferred acquisition costs, other operating expense and interest expense.
Segmental Results of GL
Premium revenues at Life increased 3% year over year to $829.8 million, driven by higher premiums written by distribution channels like American Income and Liberty National. American Income and Liberty National grew 6% each year over year.
Net sales of $148.3 million decreased 1% on a year-over-year basis. Underwriting margins rose 9% year over year to $337.2 million.
Health insurance premium revenues rose 8% year over year to $369.7 million, primarily driven by higher premiums from United American, Family Heritage, Liberty National, American Income and Direct to Consumer. Net health sales increased 24% year over year to $67.2 million. Underwriting margins decreased 10% year over year to $84.7 million.
Globe Life’s Financial Update
Shareholders’ equity, excluding accumulated other comprehensive income (AOCI), as of March 31, 2025, decreased 1.5% year over year to $7.4 billion.
As of March 31, 2025, Globe Life reported book value per share, excluding AOCI, of $87.92, up 11.2% year over year.
Operating return on equity, excluding AOCI, was 14.3% in the reported quarter, which contracted 30 basis points year over year.
GL’s Share Repurchase
Globe Life repurchased 1.5 million shares worth $177 million in the reported quarter.
2025 View
Globe Life projects net operating income between $13.45 and $14.05 per diluted common share for the year ending Dec. 31, 2025, reaffirming the earlier guidance.
GL Zacks Rank
Globe Life currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Insurance Stocks
Unum Group’s UNM first-quarter 2025 operating net income of $2.04 per share missed the Zacks Consensus Estimate by 6.8%. The bottom line decreased 3.8% year over year. Total operating revenues of Unum Group were $3.3 billion, up 3% year over year, driven by higher premium income and other income. However, the top line missed the Zacks Consensus Estimate by 1.1%.
Premiums increased 3.5% from the prior-year quarter to $2.7 billion and were in line with our estimate. Total benefits and expenses rose 5.3% year over year to $2.8 billion, largely attributable to higher policy benefits, including remeasurement gain, commissions, interest and debt expense and other expenses. The figure matched our estimate.
AXIS Capital Holdings Limited AXS posted first-quarter 2025 operating income of $3.17 per share, beating the Zacks Consensus Estimate by 20%. The bottom line increased 23.3% year over year. Total operating revenues of $1.6 billion missed the Zacks Consensus Estimate by 5.9%. The top line, however, rose 8.2% year over year on higher net premiums earned and net investment income.
Net investment income jumped 24% year over year to $208 million. Our estimate was $193.8 million. Total expenses in the quarter under review rose 11.3% year over year to $1.3 billion, attributable to higher net losses and loss expenses and acquisition costs. Our estimate was $1.3 billion.
Cincinnati Financial Corporation CINF reported first-quarter 2025 operating loss of 24 cents per share, narrower than the Zacks Consensus Estimate of a loss of 61 cents. CINF had reported an operating income of $1.72 per share in the prior-year quarter. The year-over-year decrease of $309 million was primarily due to a $356 million increase in after-tax catastrophe losses.
Total operating revenues in the quarter under review were $2.6 billion, which missed the Zacks Consensus Estimate by 2.5%. The top line, however, improved 13.3% year over year. Net written premiums climbed 11% year over year to $2.5 billion. Investment income, net of expenses, increased 14% year over year to $280 million, as bond interest grew 24% and stock portfolio dividends declined 7%. The figure was higher than our estimate of $274.8 million.
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