GLOBE LIFE INC. REPORTS FIRST QUARTER 2025 RESULTS
Globe Life reported strong Q1 2025 financial results, with net income reaching $3.01 per diluted share, up from $2.67 in the year-ago quarter. Net operating income rose to $3.07 per share, exceeding management's expectations.
Key highlights include:
- Net income ROE of 19.0%
- 13% increase in net income per share
- 10% increase in net operating income per share
- 6% growth in American Income Life Division premiums
- 9% increase in life underwriting margin
The company's insurance operations showed solid performance, with life insurance accounting for 80% of underwriting margin and 69% of premium revenue. Health insurance contributed 20% of underwriting margin and 31% of premium revenue. Total premium revenue increased by 5% to $1.2 billion. During the quarter, Globe Life repurchased 1.5 million shares at a total cost of $177 million.
Globe Life ha riportato risultati finanziari solidi per il primo trimestre 2025, con un utile netto di 3,01 dollari per azione diluita, in aumento rispetto ai 2,67 dollari dello stesso periodo dell'anno precedente. L'utile operativo netto 猫 salito a 3,07 dollari per azione, superando le aspettative della direzione.
I punti salienti includono:
- ROE sull'utile netto del 19,0%
- Aumento del 13% dell'utile netto per azione
- Crescita del 10% dell'utile operativo netto per azione
- Incremento del 6% dei premi nella divisione American Income Life
- Aumento del 9% del margine di sottoscrizione vita
Le attivit脿 assicurative dell'azienda hanno mostrato una performance solida, con l'assicurazione sulla vita che rappresenta l'80% del margine di sottoscrizione e il 69% dei ricavi da premi. L'assicurazione sanitaria ha contribuito per il 20% al margine di sottoscrizione e per il 31% ai ricavi da premi. Il totale dei ricavi da premi 猫 aumentato del 5%, raggiungendo 1,2 miliardi di dollari. Durante il trimestre, Globe Life ha riacquistato 1,5 milioni di azioni per un costo complessivo di 177 milioni di dollari.
Globe Life report贸 s贸lidos resultados financieros en el primer trimestre de 2025, con un ingreso neto de 3,01 d贸lares por acci贸n diluida, frente a los 2,67 d贸lares del mismo trimestre del a帽o anterior. El ingreso operativo neto aument贸 a 3,07 d贸lares por acci贸n, superando las expectativas de la gerencia.
Los puntos clave incluyen:
- ROE del ingreso neto del 19,0%
- Aumento del 13% en el ingreso neto por acci贸n
- Crecimiento del 10% en el ingreso operativo neto por acci贸n
- Crecimiento del 6% en las primas de la divisi贸n American Income Life
- Aumento del 9% en el margen de suscripci贸n de vida
Las operaciones de seguros de la compa帽铆a mostraron un desempe帽o s贸lido, con el seguro de vida representando el 80% del margen de suscripci贸n y el 69% de los ingresos por primas. El seguro de salud contribuy贸 con el 20% del margen de suscripci贸n y el 31% de los ingresos por primas. Los ingresos totales por primas aumentaron un 5% hasta 1,2 mil millones de d贸lares. Durante el trimestre, Globe Life recompr贸 1.5 millones de acciones por un costo total de 177 millones de d贸lares.
Globe Life電� 2025雲� 1攵勱赴鞐� 臧曤牓頃� 鞛 鞁れ爜鞚� 氤搓碃頄堨溂氅�, 頋劃 欤茧嫻 靾滌澊鞚奠澊 鞝勲厔 霃欔赴 2.67雼煬鞐愳劀 3.01雼煬搿� 歃濌皜頄堨姷雼堧嫟. 靾滌榿鞐呾澊鞚奠潃 欤茧嫻 3.07雼煬搿� 瓴届榿歆勳潣 旮半寑旃橂ゼ 齑堦臣頄堨姷雼堧嫟.
欤检殧 雮挫毄鞚� 雼れ潓瓿� 臧欖姷雼堧嫟:
- 靾滌澊鞚� 鞛愱赴鞛愲掣鞚挫澋毳�(ROE) 19.0%
- 欤茧嫻 靾滌澊鞚� 13% 歃濌皜
- 欤茧嫻 靾滌榿鞐呾澊鞚� 10% 歃濌皜
- American Income Life 攵�氍� 氤错棙耄� 6% 靹膘灔
- 靸濍獏氤错棙 鞚胳垬 毵堨 9% 歃濌皜
須岇偓鞚� 氤错棙 靷梾鞚� 瓴碃頃� 鞁れ爜鞚� 氤挫榾鞙茧┌, 靸濍獏氤错棙鞚� 鞚胳垬 毵堨鞚� 80%, 氤错棙耄� 靾橃瀰鞚� 69%毳� 彀頄堨姷雼堧嫟. 瓯搓皶氤错棙鞚� 鞚胳垬 毵堨鞚� 20%, 氤错棙耄� 靾橃瀰鞚� 31%毳� 旮办棳頄堨姷雼堧嫟. 齑� 氤错棙耄� 靾橃瀰鞚� 5% 歃濌皜頃橃棳 12鞏� 雼煬鞐� 雼枅鞀惦媹雼�. 攵勱赴 霃欖晥 Globe Life電� 齑� 1鞏� 7,700毵� 雼煬毳� 霌れ棳 150毵� 欤茧ゼ 鞛愳偓欤� 毵れ瀰頄堨姷雼堧嫟.
Globe Life a annonc茅 de solides r茅sultats financiers pour le premier trimestre 2025, avec un b茅n茅fice net atteignant 3,01 $ par action dilu茅e, en hausse par rapport 脿 2,67 $ au m锚me trimestre de l'ann茅e pr茅c茅dente. Le b茅n茅fice d'exploitation net a augment茅 pour atteindre 3,07 $ par action, d茅passant les attentes de la direction.
Les points cl茅s comprennent :
- ROE du b茅n茅fice net de 19,0 %
- Augmentation de 13 % du b茅n茅fice net par action
- Augmentation de 10 % du b茅n茅fice d'exploitation net par action
- Croissance de 6 % des primes de la division American Income Life
- Augmentation de 9 % de la marge de souscription vie
Les op茅rations d'assurance de la soci茅t茅 ont montr茅 une performance solide, l'assurance vie repr茅sentant 80 % de la marge de souscription et 69 % des revenus de primes. L'assurance sant茅 a contribu茅 脿 hauteur de 20 % 脿 la marge de souscription et 31 % aux revenus de primes. Le revenu total des primes a augment茅 de 5 % pour atteindre 1,2 milliard de dollars. Au cours du trimestre, Globe Life a rachet茅 1,5 million d'actions pour un co没t total de 177 millions de dollars.
Globe Life meldete starke Finanzergebnisse f眉r das erste Quartal 2025, mit einem Nettogewinn von 3,01 USD je verw盲sserter Aktie, gegen眉ber 2,67 USD im Vorjahresquartal. Der operative Nettogewinn stieg auf 3,07 USD je Aktie und 眉bertraf damit die Erwartungen des Managements.
Wichtige Highlights sind:
- Eigenkapitalrendite (ROE) des Nettogewinns von 19,0 %
- 13 % Steigerung des Nettogewinns je Aktie
- 10 % Zunahme des operativen Nettogewinns je Aktie
- 6 % Wachstum der Pr盲mien in der American Income Life Division
- 9 % Anstieg der Lebensversicherungs-Unterwriting-Marge
Die Versicherungsgesch盲fte des Unternehmens zeigten eine solide Leistung, wobei die Lebensversicherung 80 % der Underwriting-Marge und 69 % der Pr盲mieneinnahmen ausmachte. Die Krankenversicherung trug 20 % zur Underwriting-Marge und 31 % zu den Pr盲mieneinnahmen bei. Die gesamten Pr盲mieneinnahmen stiegen um 5 % auf 1,2 Milliarden USD. Im Quartal kaufte Globe Life 1,5 Millionen Aktien zu Gesamtkosten von 177 Millionen USD zur眉ck.
- Net income per share increased 13% to $3.01 vs $2.67 year-ago quarter
- Net operating income per share rose 10% to $3.07, exceeding management expectations
- Strong ROE of 19.0% for Q1 2025
- Life underwriting margin increased 9% year-over-year
- American Income Life premiums grew 6% over year-ago quarter
- Liberty National showed 4% increase in life sales and 8% growth in producing agents
- Family Heritage Division health sales up 7% with 9% premium growth
- Total health insurance net sales increased 24% year-over-year
- Excess investment income declined 18% to $35.9M from $43.8M year-ago
- Interest on debt increased 37% year-over-year
- Health insurance underwriting margin decreased 10% vs year-ago quarter
- Direct to Consumer life net sales declined 12%
- Administrative expense ratio increased to 7.3% from 7.0% year-ago
- United American health underwriting margin dropped 86%
- Direct to Consumer health segment reported negative underwriting margin of -8%
Insights
Globe Life delivers strong Q1 with 13% EPS growth and 10% operating income growth despite some challenges in health segment.
Globe Life's Q1 2025 results demonstrate solid financial performance with net income reaching
Premium revenue showed healthy growth across both segments, with total premiums rising
The company's capital allocation strategy continues to favor shareholders, with 1.5 million shares repurchased at a total cost of
Some areas warrant attention: health underwriting margin decreased
Despite these challenges, the overall financial performance demonstrates the company's ability to grow earnings effectively across its diversified business lines.
GL shows strong life insurance performance with 9% margin growth, offsetting concerning health segment challenges in United American division.
Globe Life's Q1 2025 insurance operations reveal a tale of two segments. Life insurance showed excellent performance with underwriting margin increasing
Division performance varies significantly. American Income Life, the largest contributor, delivered consistent results with life premiums up
Family Heritage posted impressive health insurance results with premiums up
Two concerning datapoints demand attention: United American's health underwriting margin dramatically declined from
Agent metrics show average producing agent counts increased at American Income (
Overall insurance underwriting income grew
HIGHLIGHTS:
- Net income as an ROE was
19.0% for the three months ended March 31, 2025. Net operating income as an ROE excluding accumulated other comprehensive income (AOCI) was14.1% for the same period. - Net income per share increased
13% and net operating income per share increased10% over the year-ago quarter. - At the American Income Life Division, life premiums increased over the year-ago quarter by
6% . - At the Liberty National Division, net life sales increased
4% and life premiums increased6% over the year-ago quarter. Additionally, the average producing agent count increased8% over the year-ago quarter. - At the Family Heritage Division, health net sales increased
7% and health premiums increased9% over the year-ago quarter. Additionally, the average producing agent count increased9% over the year-ago quarter. - Life underwriting margin increased
9% over the year-ago quarter. - 1.5 million shares of Globe Life Inc. common stock at a total cost of
$177 million
Note: As used in the earnings release, "Globe Life," the "Company," "we," "our," and "us" refer to Globe Life Inc., a
GLOBE LIFE INC. | |||||||||||
Earnings Release鈥擰1 2025 | |||||||||||
(Dollar amounts in thousands, except share and per share data) | |||||||||||
(Unaudited) | |||||||||||
RESULTS OF OPERATIONS | |||||||||||
Net operating income, a non-GAAP(1) financial measure, has been used consistently by Globe Life's management for many years to evaluate the operating performance of the Company, and is a measure commonly used in the life insurance industry. It differs from net income primarily because it excludes certain non-operating items such as realized investment gains and losses and certain significant and unusual items included in net income. Management believes an analysis of net operating income is important in understanding the profitability and operating trends of the Company's business. Net income is the most directly comparable GAAP measure. | |||||||||||
The following table represents Globe Life's operating summary for the three months ended March 31, 2025 and 2024: | |||||||||||
Operating Summary | |||||||||||
Per Share | |||||||||||
Three Months Ended March 31, | Three Months Ended March 31, | ||||||||||
2025 | 2024 | % Chg. | 2025 | 2024 | % Chg. | ||||||
Insurance underwriting income(2) | $听听听听听听听听听听 3.98 | $听听听听听听听听听听 3.41 | 17 | $听听听听 336,315 | $听听听听 324,361 | 4 | |||||
Excess investment income(2) | 0.42 | 0.46 | (9) | 35,870 | 43,785 | (18) | |||||
Interest on debt | (0.41) | (0.30) | 37 | (34,992) | (28,621) | 22 | |||||
Parent company expense | (0.04) | (0.03) | (3,050) | (2,826) | |||||||
Income tax expense | (0.77) | (0.70) | 10 | (64,891) | (66,227) | (2) | |||||
Stock compensation benefit (expense), net of tax | (0.12) | (0.07) | (9,915) | (6,373) | |||||||
Net operating income | 3.07 | 2.78 | 10 | 259,337 | 264,099 | (2) | |||||
Reconciling items, net of tax: | |||||||||||
AG真人官方ized gain (loss) | 鈥� | (0.10) | 67 | (9,321) | |||||||
Non-operating expenses | 鈥� | (0.01) | 鈥� | (561) | |||||||
Legal proceedings(4) | (0.06) | 鈥� | (4,841) | 鈥� | |||||||
Net income(3) | $听听听听听听听听听听 3.01 | $听听听听听听听听听听 2.67 | $听听听听 254,563 | $听听听听 254,217 | |||||||
Weighted average diluted shares outstanding | 84,480 | 95,115 | |||||||||
(1) | GAAP is defined as accounting principles generally accepted in |
(2) | Definitions included within this document. |
(3) | A GAAP-basis condensed consolidated statement of operations is included in the appendix of this report. |
(4) | Includes an estimate of costs associated with settlement of certain litigation claims not related to the Department of Justice, Securities and Exchange Commission, or Equal Employment Opportunity Commission matters, as well as certain additional legal expenses incurred. |
Note: Tables in this earnings release may not sum due to rounding. | |
听
GLOBE LIFE INC. |
Earnings Release鈥擰1 2025 |
(Dollar amounts in thousands, except share and per share data) |
(Unaudited) |
MANAGEMENT VS. GAAP MEASURES |
Shareholders' equity, excluding AOCI, and book value per share, excluding AOCI, are non-GAAP measures that are utilized by management to view the business without the effect of changes in AOCI, which are primarily attributable to fluctuation in interest rates. Management views the business in this manner because it creates more meaningful and easily identifiable trends, as we exclude fluctuations resulting from changes in interest rates. Shareholders' equity and book value per share are the most directly comparable GAAP measures.听 |
Three Months Ended March 31, | |||
2025 | 2024 | ||
Net income | $听听听听听听听 254,563 | $听听听听听听听 254,217 | |
Net operating income | 259,337 | 264,099 | |
Net income as an ROE(1) | 19.0听% | 21.3听% | |
Net operating income as an ROE听(excluding AOCI)(1) | 14.1听% | 14.3听% | |
March 31, | |||
2025 | 2024 | ||
Shareholders' equity | $听听听听 5,425,416 | $听听听听 5,039,161 | |
Impact of adjustment to exclude AOCI | 1,970,873 | 2,467,236 | |
Shareholders' equity, excluding AOCI | $听听听听 7,396,289 | $听听听听 7,506,397 | |
Book value per share | $听听听听听听听听听听听 64.50 | $听听听听听听听听听听听 53.03 | |
Impact of adjustment to exclude AOCI | 23.42 | 25.97 | |
Book value per share, excluding AOCI | $听听听听听听听听听听听 87.92 | $听听听听听听听听听听听 79.00 | |
(1) | Calculated using average shareholders' equity for the measurement period.听 |
听
GLOBE LIFE INC. |
Earnings Release鈥擰1 2025 |
(Dollar amounts in thousands, except share and per share data) |
(Unaudited) |
INSURANCE OPERATIONS:听 |
Life insurance accounted for |
Health insurance accounted for |
Net sales of life insurance declined |
The following table summarizes Globe Life's premium revenue by product type for the three months ended March 31, 2025 and 2024: |
Insurance Premium Revenue | |||||
Quarter Ended | |||||
March 31, 2025 | March 31, 2024 | % Chg. | |||
Life insurance | $听听听听听听听听听听 829,863 | $听听听听听听听听听听 804,265 | 3 | ||
Health insurance | 369,791 | 341,019 | 8 | ||
Total | $听听听听听听听 1,199,654 | $听听听听听听听 1,145,284 | 5 | ||
INSURANCE UNDERWRITING INCOME
Insurance underwriting margin is management's measure of profitability of the Company's life and health segments' underwriting performance, and consists of premiums less policy obligations (excluding interest on policy liabilities), commissions and other acquisition expenses. Insurance underwriting income is the sum of the insurance underwriting margins of the life and health segments, plus annuity and other income, less administrative expenses. It excludes the investment segment, interest on debt, Parent Company expense, stock compensation expense and income taxes. Management believes this information helps provide a better understanding of the business and a more meaningful analysis of underwriting results by distribution channel. Insurance underwriting income, a non-GAAP measure, is a component of net operating income, which is reconciled to net income in the Results of Operations section above.
The following table summarizes Globe Life's insurance underwriting income by segment for the three months ended March 31, 2025 and 2024:
Insurance Underwriting Income | |||||||||
Quarter Ended | |||||||||
March 31, 2025 | % of Premium | March 31, 2024 | % of Premium | % Chg. | |||||
Insurance underwriting margins: | |||||||||
Life | $听听听听听听听听听听 337,264 | 41 | $听听听听听听听听听听 309,011 | 38 | 9 | ||||
Health | 84,721 | 23 | 93,770 | 27 | (10) | ||||
421,985 | 402,781 | 5 | |||||||
Annuity and other income | 1,879 | 1,991 | |||||||
Administrative expenses | (87,549) | (80,411) | |||||||
Insurance underwriting income | $听听听听听听听听听听 336,315 | $听听听听听听听听听听 324,361 | 4 | ||||||
Per share | $听听听听听听听听听听听听听听听听听 3.98 | $听听听听听听听听听听听听听听听听听 3.41 | 17 | ||||||
The ratio of administrative expenses to premium was
GLOBE LIFE INC. | |||||||||
Earnings Release鈥擰1 2025 | |||||||||
(Dollar amounts in thousands, except share and per share data) | |||||||||
(Unaudited) | |||||||||
LIFE INSURANCE RESULTS BY DISTRIBUTION CHANNEL听 | |||||||||
Our distribution channels consist of the following exclusive divisions: American Income Life Division (American Income), Liberty National Division (Liberty National), Family Heritage Division (Family Heritage), Direct to Consumer Division (Direct to Consumer); and an independent agency, United American Division (United American). | |||||||||
Total premium, underwriting margins, first-year collected premium and net sales by all distribution channels are shown at at "Financial Reports and Other Financial Information." | |||||||||
Life Underwriting Margin | |||||||||
Quarter Ended | |||||||||
March 31, | |||||||||
2025 | 2024 | ||||||||
Amount | % of | Amount | % of | % | |||||
American Income | $听听听听听听 196,169 | 45 | $听听听听听听 187,068 | 45 | 5 | ||||
Direct to Consumer | 64,200 | 26 | 58,585 | 24 | 10 | ||||
Liberty National | 31,772 | 33 | 30,713 | 34 | 3 | ||||
Other | 45,123 | 90 | 32,645 | 64 | 38 | ||||
Total | $听听听听听听 337,264 | 41 | $听听听听听听 309,011 | 38 | 9 | ||||
听
Life Premium | |||||
Quarter Ended | |||||
March 31, | |||||
2025 | 2024 | % Chg. | |||
American Income | $听听听听听听 437,866 | $听听听听听听 414,044 | 6 | ||
Direct to Consumer | 245,600 | 248,040 | (1) | ||
Liberty National | 96,182 | 90,777 | 6 | ||
Other | 50,215 | 51,404 | (2) | ||
Total | $听听听听听听 829,863 | $听听听听听听 804,265 | 3 | ||
Life Net Sales(1) | |||||
Quarter Ended | |||||
March 31, | |||||
2025 | 2024 | % Chg. | |||
American Income | $听听听听听听听听 98,555 | $听听听听听听听听 97,195 | 1 | ||
Direct to Consumer | 25,175 | 28,563 | (12) | ||
Liberty National | 22,469 | 21,605 | 4 | ||
Other | 2,152 | 2,134 | 1 | ||
Total | $听听听听听听 148,351 | $听听听听听听 149,497 | (1) | ||
(1) | Net sales is calculated as annualized premium issued, net of cancellations in the first thirty days after issue, except in the case of Direct to Consumer, where net sales is annualized premium issued at the time the first full premium is paid after any introductory offer period (typically 1 month) has expired. Management considers net sales to be a better indicator of the rate of premium growth than annualized premium issued since annualized premium issued excludes cancellations, and cancellations do not contribute to premium income. |
听
GLOBE LIFE INC. | |||||||||
Earnings Release鈥擰1 2025 | |||||||||
(Dollar amounts in thousands, except share and per share data) | |||||||||
(Unaudited) | |||||||||
HEALTH INSURANCE RESULTS BY DISTRIBUTION CHANNEL | |||||||||
Health Underwriting Margin | |||||||||
Quarter Ended | |||||||||
March 31, | |||||||||
2025 | 2024 | ||||||||
Amount | % of | Amount | % of | % | |||||
United American | $听听听听听听听听听听听 1,617 | 1 | $听听听听听听听听 11,906 | 8 | (86) | ||||
Family Heritage | 39,249 | 35 | 35,838 | 35 | 10 | ||||
Liberty National | 25,982 | 54 | 26,672 | 56 | (3) | ||||
American Income | 19,389 | 63 | 19,192 | 63 | 1 | ||||
Direct to Consumer | (1,516) | (8) | 162 | 1 | |||||
Total | $听听听听听听听听 84,721 | 23 | $听听听听听听听听 93,770 | 27 | (10) | ||||
听
Health Premium | |||||
Quarter Ended | |||||
March 31, | |||||
2025 | 2024 | % Chg. | |||
United American | $听听听听听听 159,848 | $听听听听听听 141,635 | 13 | ||
Family Heritage | 112,354 | 103,391 | 9 | ||
Liberty National | 47,922 | 47,630 | 1 | ||
American Income | 30,691 | 30,497 | 1 | ||
Direct to Consumer | 18,976 | 17,866 | 6 | ||
Total | $听听听听听听 369,791 | $听听听听听听 341,019 | 8 | ||
Health Net Sales(1) | |||||
Quarter Ended | |||||
March 31, | |||||
2025 | 2024 | % Chg. | |||
United American | $听听听听听听听听 27,708 | $听听听听听听听听 16,423 | 69 | ||
Family Heritage | 26,816 | 24,966 | 7 | ||
Liberty National | 7,198 | 7,613 | (5) | ||
American Income | 4,870 | 4,594 | 6 | ||
Direct to Consumer | 645 | 804 | (20) | ||
Total | $听听听听听听听听 67,237 | $听听听听听听听听 54,400 | 24 | ||
(1) | Net sales is calculated as annualized premium issued, net of cancellations in the first thirty days after issue, except in the case of Direct to Consumer, where net sales is annualized premium issued at the time the first full premium is paid after any introductory offer period (typically 1 month) has expired. Management considers net sales to be a better indicator of the rate of premium growth than annualized premium issued since annualized premium issued excludes cancellations, and cancellations do not contribute to premium income. |
听
GLOBE LIFE INC. | |||||||
Earnings Release鈥擰1 2025 | |||||||
(Dollar amounts in thousands, except share and per share data) | |||||||
(Unaudited) | |||||||
PRODUCING EXCLUSIVE AGENT COUNT RESULTS BY DISTRIBUTION CHANNEL | |||||||
Quarterly Average Producing Agent Count(1) | |||||||
Quarter Ended | Quarter Ended | ||||||
March 31, | December 31, | ||||||
2025 | 2024 | % | 2024 | ||||
American Income | 11,510 | 11,139 | 3 | 11,926 | |||
Liberty National | 3,688 | 3,419 | 8 | 3,743 | |||
Family Heritage | 1,417 | 1,295 | 9 | 1,512 | |||
(1) | The quarterly average producing agent count is based on the actual count at the beginning and end of each week during the period. |
INVESTMENTS
Management uses excess investment income as the measure to evaluate the performance of the investment segment. It is defined as net investment income less the required interest attributable to policy liabilities. We also view excess investment income per diluted common share as an important and useful measure to evaluate performance of the investment segment, since it takes into consideration our stock repurchase program.听
The following table summarizes Globe Life's investment income, excess investment income, and excess investment income per diluted common share.
Excess Investment Income | |||||
Quarter Ended | |||||
March 31, | |||||
2025 | 2024 | % Chg. | |||
Net investment income | $听听听听听听 280,614 | $听听听听听听 282,578 | (1) | ||
Interest on policy liabilities(1) | (244,744) | (238,793) | 2 | ||
Excess investment income | $听听听听听听听听 35,870 | $听听听听听听听听 43,785 | (18) | ||
Per share | $听听听听听听听听听听听听听 0.42 | $听听听听听听听听听听听听 0.46 | (9) | ||
(1) | Interest on policy liabilities, at original discount rates, is a component of total policyholder benefits, a GAAP measure. |
Net investment income declined
GLOBE LIFE INC. | |||
Earnings Release鈥擰1 2025 | |||
(Dollar amounts in thousands, except share and per share data) | |||
(Unaudited) | |||
The composition of the investment portfolio at book value at March 31, 2025 is as follows: | |||
Investment Portfolio | |||
As of | |||
March 31, 2025 | |||
Amount | % of Total | ||
Fixed maturities at fair value(1) | $听听听听听 17,504,967 | 87 | |
Mortgage loans | 426,174 | 2 | |
Policy loans | 708,175 | 4 | |
Other long-term investments(2) | 1,236,624 | 6 | |
Short-term investments | 134,066 | 1 | |
Total | $听听听听听 20,010,006 | ||
(1) | As of March 31, 2025, fixed maturities at amortized cost were |
(2) | Includes |
Fixed maturities at amortized cost, net of allowance for credit losses, by asset class as of March 31, 2025 are as follows:
Fixed Maturity Portfolio by Sector | |||||
As of | |||||
March 31, 2025 | |||||
Investment | Below | Total | |||
Corporate bonds | $听听听 14,634,347 | $听听听听听听听听 460,971 | $听听听 15,095,318 | ||
Municipals | 3,295,133 | 鈥� | 3,295,133 | ||
Government, agencies, and GSEs(1) | 445,527 | 鈥� | 445,527 | ||
Collateralized debt obligations | 鈥� | 36,609 | 36,609 | ||
Other asset-backed securities | 82,646 | 8,779 | 91,425 | ||
Total | $听听听 18,457,653 | $听听听听听听听听 506,359 | $听听听 18,964,012 | ||
(1) | Government-Sponsored Enterprises |
Below are fixed maturities available for sale by amortized cost, allowance for credit losses, and fair value at March 31, 2025 and the corresponding amounts of net unrealized gains and losses recognized in accumulated other comprehensive income (loss).
As of | Amortized Cost | Allowance for | Net Unrealized | Fair 听Value | |||
March 31, 2025 | $听听听听听听听听听听听听听听听听 18,974,367 | $听听听听听听听听听听听 (10,355) | $听听听听听 (1,459,045) | $听听听听听 17,504,967 | |||
At amortized cost, net of allowance for credit losses,
Globe Life is not a party to any credit default swaps and does not participate in securities lending.
GLOBE LIFE INC. | |||
Earnings Release鈥擰1 2025 | |||
(Dollar amounts in thousands, except share and per share data) | |||
(Unaudited) | |||
Comparable information for acquisitions of fixed maturity and other investments is as follows: | |||
Fixed Maturity Acquisitions | |||
Quarter Ended | |||
March 31, | |||
2025 | 2024 | ||
Amount | $听听听听听 244,845 | $听听听听听 682,427 | |
Average annual effective yield | 6.4听% | 5.9听% | |
Average rating | A- | A- | |
Average life (in years) to: | |||
Next call | 40.7 | 30.4 | |
Maturity | 43.1 | 32.3 | |
Other Investment Acquisitions | |||
Quarter Ended | |||
March 31, | |||
2025 | 2024 | ||
Limited partnerships | $听听听听听听听听听听听 15,831 | $听听听听听听听听听听听 67,498 | |
Mortgage loans | 35,621 | 58,406 | |
Common stock | 502 | 11,968 | |
Other invested assets | 鈥� | 1,350 | |
Total | $听听听听听听听听听听听 51,954 | $听听听听听听听听 139,222 | |
SHARE REPURCHASE:
During the quarter, the Company repurchased 1.5 million shares of Globe Life Inc. common stock at a total cost of
LIQUIDITY/CAPITAL:
Globe Life's operations consist primarily of writing basic protection life and supplemental health insurance policies which generate strong and stable cash flows. These cash flows are not impacted by volatile equity markets. Liquidity at the Parent Company is sufficient to meet additional capital needs of the insurance companies.
EARNINGS GUIDANCE FOR THE YEAR ENDING DECEMBER 31, 2025:
Globe Life projects net operating income between
NON-GAAP MEASURES:
In this news release, Globe Life includes non-GAAP measures to enhance investors' understanding of management's view of the business. The non-GAAP measures are not a substitute for GAAP, but rather a supplement to increase transparency by providing broader perspective. Globe Life's definitions of non-GAAP measures may differ from other companies' definitions. More detailed financial information, including various GAAP and non-GAAP measurements, is located at on the Investors page under "Financial Reports and Other Financial Information."
CAUTION REGARDING FORWARD-LOOKING STATEMENTS:
This press release may contain forward-looking statements within the meaning of the federal securities laws. These prospective statements reflect management's current expectations, but are not guarantees of future performance. Whether or not actual results differ materially from forward-looking statements may depend on numerous foreseeable and unforeseeable events or developments, which may be national in scope, related to the insurance industry generally, or applicable to the Company specifically. Such events or developments could include, but are not necessarily limited to:
1) Economic and other conditions, including the impact of inflation, immigration, geopolitical events, escalating tariff and non-tariff trade measures imposed by the
2) Regulatory developments, including changes in accounting standards or governmental regulations (particularly those impacting taxes and changes to the Federal Medicare program that would affect Medicare Supplement);
3) Market trends in the senior-aged health care industry that provide alternatives to traditional Medicare (such as Health Maintenance Organizations and other managed care or private plans) and that could affect the sales of traditional Medicare Supplement insurance;
4) Interest rate changes that affect product sales, financing costs, and/or investment yields;
5) General economic, industry sector or individual debt issuers' financial conditions (including developments and volatility arising from geopolitical events, particularly in certain industries that may compromise part of our investment portfolio) that may affect the current market value of securities we own, or that may impair an issuer's ability to make principal and/or interest payments due on those securities;
6) Changes in the competitiveness of the Company's products and pricing;
7) Litigation results;
8) Levels of administrative and operational efficiencies that differ from our assumptions (including any reduction in efficiencies resulting from increased costs arising from the impact of higher than anticipated inflation);
9) The ability to obtain timely and appropriate premium rate increases for health insurance policies from our regulators;
10) The customer response to new products and marketing initiatives;
11) Reported amounts in the consolidated financial statements which are based on management estimates and judgments which may differ from the actual amounts ultimately realized;
12) Compromise by a malicious actor or other event that causes a loss of secure data from, or inaccessibility to, our computer and other information technology systems;
13) The impact of any reputational damage on the Company including the impact on the Company's ability to attract and retain agents;
14) The severity, magnitude, and impact of natural or man-made catastrophic events, including but not limited to pandemics, tornadoes, hurricanes, earthquakes, war and terrorism, on our operations and personnel, commercial activity and demand for our products; and
15) Globe Life's ability to access the commercial paper and debt markets, particularly if such markets become unpredictable or unstable for a certain period.
Readers are also directed to consider other risks and uncertainties described in other documents on file with the Securities and Exchange Commission, including those described in the "Risk Factors" section of our most recent Annual Report on Form 10-K. Globe Life specifically disclaims any obligation to update or revise any forward-looking statement because of new information, future developments or otherwise.
EARNINGS RELEASE CONFERENCE CALL WEBCAST:
Globe Life will provide a live audio webcast of its first quarter 2025 earnings release conference call with financial analysts at 12:00 pm (Eastern) tomorrow, May听1, 2025. Access to the live webcast and replay will be available at on the Calls and Meetings page, at the Conference Calls on the Web icon. Immediately following this press release, supplemental financial reports will be available before the conference call on the Investors page menu of the Globe Life website at "Financial Reports."听听
APPENDIX | |||
GLOBE LIFE INC. | |||
GAAP CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | |||
Three Months Ended March 31, | |||
2025 | 2024 | ||
Revenue: | |||
Life premium | $听听听听听听听听 829,863 | $听听听听听听听听 804,265 | |
Health premium | 369,791 | 341,019 | |
Other premium | 鈥� | 鈥� | |
Total premium | 1,199,654 | 1,145,284 | |
Net investment income | 280,614 | 282,578 | |
AG真人官方ized gains (losses) | 85 | (11,799) | |
Other income | 69 | 76 | |
Total revenue | 1,480,422 | 1,416,139 | |
Benefits and expenses: | |||
Life policyholder benefits(1) | 509,756 | 519,871 | |
Health policyholder benefits(2) | 233,929 | 202,327 | |
Other policyholder benefits | 7,080 | 9,595 | |
Total policyholder benefits | 750,765 | 731,793 | |
Amortization of deferred acquisition costs | 105,515 | 99,478 | |
Commissions, premium taxes, and non-deferred acquisition costs | 164,323 | 148,110 | |
Other operating expense | 108,746 | 93,214 | |
Interest expense | 34,992 | 28,621 | |
Total benefits and expenses | 1,164,341 | 1,101,216 | |
Income before income taxes | 316,081 | 314,923 | |
Income tax benefit (expense) | (61,518) | (60,706) | |
Net income | $听听听听听听听听 254,563 | $听听听听听听听听 254,217 | |
Basic net income per common share | $听听听听听听听听听听听听听听 3.05 | $听听听听听听听听听听听听听听 2.71 | |
Diluted net income per common share | $听听听听听听听听听听听听听听 3.01 | $听听听听听听听听听听听听听听 2.67 | |
(1) | Net of total remeasurement听 gain of |
(2) | Net of a total remeasurement gain of |
听
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