GLOBE LIFE INC. REPORTS SECOND QUARTER 2025 RESULTS

23.07.25 22:10 Uhr

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MCKINNEY, Texas, July 23, 2025 /PRNewswire/ -- Globe Life Inc. (NYSE: GL) reported today that for the quarter ended June 30, 2025, net income was $3.05 per diluted common share, compared with $2.83 per diluted common share for the year-ago quarter. Net operating income was $3.27 per diluted common share, compared with $2.97 per diluted common share for the year-ago quarter.

Globe Life (PRNewsfoto/Globe Life)

HIGHLIGHTS:

  • Net income as an ROE was 18.8% for the six months ended June 30, 2025. Net operating income as an ROE excluding accumulated other comprehensive income (AOCI) was 14.4% for the same period.
  • Net income per share increased 8% and net operating income per share increased 10% over the year-ago quarter.
  • At the American Income Life and Liberty National Divisions, life premiums increased 5% over the year-ago quarter.
  • At the Family Heritage Division, health net sales increased 20% and health premiums increased 9% over the year-ago quarter. Additionally, the average producing agent count increased 10% over the year-ago quarter.
  • At the Direct to Consumer Division, life net sales increased 2% over the year-ago quarter and 24% over the first quarter of 2025. Life underwriting margin grew 8% over the year-ago quarter to $69 million.
  • Life underwriting margin increased 6% over the year-ago quarter.
  • 1.9 million shares of Globe Life Inc. common stock at a total cost of $226 million were repurchased during the quarter.

Note: As used in the earnings release, "Globe Life," the "Company," "we," "our," and "us" refer to Globe Life Inc., a Delaware corporation incorporated in 1979, its subsidiaries and affiliates.

GLOBE LIFE INC.

Earnings Release—Q2 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 June 30, 2025 and 2024:


Operating Summary


Per Share








Three Months Ended

June 30,




Three Months Ended

June 30,




2025


2024


%

Chg.


2025


2024


%

Chg.

Insurance underwriting income(2)

$           4.28


$           3.72


15


$     354,176


$     340,437


4

Excess investment income(2)

0.42


0.47


(11)


34,828


42,791


(19)

Interest on debt

(0.42)


(0.34)


24


(34,885)


(31,404)


11

Parent company expense

(0.04)


(0.03)




(3,555)


(3,130)



Income tax expense

(0.82)


(0.75)


9


(68,062)


(68,857)


(1)

Stock compensation benefit (expense), net of tax

(0.14)


(0.09)




(11,407)


(8,620)



Net operating income

3.27


2.97


10


271,095


271,217














Reconciling items, net of tax:












Realized gain (loss)

(0.18)


(0.11)




(14,674)


(9,945)



Non-operating expenses


(0.01)





(993)



Legal proceedings

(0.04)


(0.02)




(3,672)


(1,924)



Net income(3)

$           3.05


$           2.83




$     252,749


$     258,355















Weighted average diluted shares outstanding

82,793


91,441











(1)

GAAP is defined as accounting principles generally accepted in the United States of America.

(2)

Definitions included within this document.

(3)

A GAAP-basis condensed consolidated statement of operations is included in the appendix of this report.



Note: Tables in this earnings release may not sum due to rounding.

 

GLOBE LIFE INC.

Earnings Release—Q2 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. 


Six Months Ended

June 30,


2025


2024

Net income

$        507,312


$        512,572

Net operating income

530,432


535,316

Net income as an ROE(1)

18.8 %


20.8 %

Net operating income as an ROE (excluding AOCI)(1)

14.4 %


14.5 %






June 30,


2025


2024

Shareholders' equity

$     5,419,030


$     5,227,754

Impact of adjustment to exclude AOCI

1,983,868


2,189,620

Shareholders' equity, excluding AOCI

$     7,402,898


$     7,417,374





Book value per share

$            66.07


$            58.06

Impact of adjustment to exclude AOCI

24.19


24.32

Book value per share, excluding AOCI

$            90.26


$            82.38



(1)

Calculated using average shareholders' equity for the measurement period. 

 

GLOBE LIFE INC.

Earnings Release—Q2 2025

(Dollar amounts in thousands, except share and per share data)

(Unaudited)


INSURANCE OPERATIONS: 


Life insurance accounted for 78% of the Company's insurance underwriting margin for the quarter and 69% of total premium revenue. 


Health insurance accounted for 22% of the Company's insurance underwriting margin for the quarter and 31% of total premium revenue.


Net sales of life insurance increased 1% for the quarter, and net health sales increased 19%. 


The following table summarizes Globe Life's premium revenue by product type for the three months ended June 30, 2025 and 2024:


Insurance Premium Revenue


Quarter Ended


June 30, 2025


June 30, 2024


%

Chg.

Life insurance

$           839,544


$           815,482


3

Health insurance

378,099


351,643


8

Total

$        1,217,643


$        1,167,125


4

 

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 June 30, 2025 and 2024:

Insurance Underwriting Income


Quarter Ended


June 30, 2025


% of

Premium


June 30, 2024


% of

Premium


%

Chg.

Insurance underwriting margins:










Life

$           340,074


41


$           320,323


39


6

Health

98,057


26


100,488


29


(2)


438,131




420,811




4

Annuity and other income

2,092




1,822





Administrative expenses

(86,047)




(82,196)





Insurance underwriting income

$           354,176




$           340,437




4

Per share

$                  4.28




$                  3.72




15

 

The ratio of administrative expenses to premium was 7.1%, compared with 7.0% for the year-ago quarter.  

GLOBE LIFE INC.

Earnings Release—Q2 2025

(Dollar amounts in thousands, except share and per share data)

(Unaudited)


LIFE INSURANCE RESULTS BY DISTRIBUTION CHANNEL 


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 https://investors.globelifeinsurance.com at "Financial Reports and Other Financial Information."


Life Underwriting Margin


Quarter Ended




June 30,




2025


2024




Amount


% of
Premium


Amount


% of
Premium


%
Chg.

American Income

$       204,533


46


$       192,662


45


6

Direct to Consumer

68,959


28


63,848


26


8

Liberty National

33,446


34


31,072


34


8

Other

33,136


66


32,741


64


1

Total

$       340,074


41


$       320,323


39


6

 

Life Premium


Quarter Ended




June 30,




2025


2024


%

Chg.

American Income

$       445,511


$       423,534


5

Direct to Consumer

246,223


248,839


(1)

Liberty National

97,263


92,197


5

Other

50,547


50,912


(1)

Total

$       839,544


$       815,482


3

 

Life Net Sales(1)


Quarter Ended




June 30,




2025


2024


%

Chg.

American Income

$         96,227


$         94,668


2

Direct to Consumer

31,096


30,614


2

Liberty National

24,615


25,889


(5)

Other

2,947


2,332


26

Total

$       154,885


$       153,503


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.

 

GLOBE LIFE INC.

Earnings Release—Q2 2025

(Dollar amounts in thousands, except share and per share data)

(Unaudited)


HEALTH INSURANCE RESULTS BY DISTRIBUTION CHANNEL


Health Underwriting Margin


Quarter Ended




June 30,




2025


2024




Amount


% of
Premium


Amount


% of
Premium


%
Chg.

United American

$         12,402


8


$         16,571


11


(25)

Family Heritage

40,927


35


36,611


35


12

Liberty National

24,372


51


26,400


55


(8)

American Income

19,325


62


19,092


62


1

Direct to Consumer

1,031


5


1,814


10


(43)

Total

$         98,057


26


$       100,488


29


(2)

 

Health Premium


Quarter Ended




June 30,




2025


2024


%

Chg.

United American

$       163,978


$       149,230


10

Family Heritage

115,856


105,855


9

Liberty National

47,631


47,705


American Income

31,422


30,721


2

Direct to Consumer

19,212


18,132


6

Total

$       378,099


$       351,643


8

 

Health Net Sales(1)


Quarter Ended




June 30,




2025


2024


%

Chg.

United American

$         25,454


$         18,228


40

Family Heritage

29,561


24,570


20

Liberty National

8,182


8,356


(2)

American Income

4,749


5,792


(18)

Direct to Consumer

786


839


(6)

Total

$         68,732


$         57,785


19



(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.

 

GLOBE LIFE INC.

Earnings Release—Q2 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


June 30,




March 31,


2025


2024


%
Chg.


2025

American Income

12,241


11,869


3


11,510

Liberty National

3,882


3,700


5


3,688

Family Heritage

1,498


1,361


10


1,417



(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. 

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


June 30,


2025


2024


%

Chg.

Net investment income

$       282,169


$       285,636


(1)

Interest on policy liabilities(1)

(247,341)


(242,845)


2

Excess investment income

$         34,828


$         42,791


(19)

Per share

$              0.42


$             0.47


(11)



(1)

Interest on policy liabilities, at original discount rates, is a component of total policyholder benefits, a GAAP measure.

 

Net investment income declined 1% while average invested assets were relatively flat. Required interest on policy liabilities and average policy liabilities both increased 2%.

GLOBE LIFE INC.

Earnings Release—Q2 2025

(Dollar amounts in thousands, except share and per share data)

(Unaudited)


The composition of the investment portfolio at book value at June 30, 2025 is as follows:


Investment Portfolio


As of


June 30, 2025


Amount


% of Total

Fixed maturities at fair value(1)

$      17,365,354


87

Mortgage loans

455,767


2

Policy loans

718,621


4

Other long-term investments(2)

1,268,624


6

Short-term investments

116,724


1

Total

$      19,925,090





(1)

As of June 30, 2025, fixed maturities at amortized cost were $18.9 billion, net of $10.4 million of allowance for credit losses.

(2)

Includes $1.02 billion of investments accounted for under the fair value option which have a cost of $1.01 billion as of June 30, 2025.

 

Fixed maturities at amortized cost, net of allowance for credit losses, by asset class as of June 30, 2025 are as follows:

Fixed Maturity Portfolio by Sector


As of


June 30, 2025


Investment
Grade


Below
Investment
Grade


Total
Amortized
Cost, net

Corporate bonds

$    14,628,153


$         491,174


$    15,119,327

Municipals

3,303,151



3,303,151

Government, agencies, and GSEs(1)

450,798



450,798

Collateralized debt obligations



Other asset-backed securities

64,518


11,648


76,166

Total

$    18,446,620


$         502,822


$    18,949,442



(1)

Government-Sponsored Enterprises

 

Below are fixed maturities available for sale by amortized cost, allowance for credit losses, and fair value at June 30, 2025 and the corresponding amounts of net unrealized gains and losses recognized in accumulated other comprehensive income (loss).

As of

 

Amortized

Cost


Allowance for
Credit Losses


Net Unrealized
Gains
(Losses)


Fair

 Value

June 30, 2025

$                 18,959,797


$            (10,355)


$      (1,584,088)


$      17,365,354

 

At amortized cost, net of allowance for credit losses, and at fair value, 97% of fixed maturities were rated "investment grade." The fixed maturity portfolio earned an annual taxable equivalent effective yield of 5.29% during the second quarter of 2025, compared with 5.26% in the year-ago quarter.

Globe Life is not a party to any credit default swaps and does not participate in securities lending.

GLOBE LIFE INC.

Earnings Release—Q2 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


June 30,


2025


2024

Amount

$      263,252


$      240,669

Average annual effective yield

6.4 %


6.2 %

Average rating

A


A-

Average life (in years) to:




Next call

31.2


32.2

Maturity

33.8


34.8





Other Investment Acquisitions


Quarter Ended


June 30,


2025


2024

Limited partnerships

$            36,985


$            81,725

Mortgage loans

31,215


33,761

Common stock

1,342


2,044

Other invested assets


1,500

Total

$            69,542


$         119,030

 

SHARE REPURCHASE:

During the quarter, the Company repurchased 1.9 million shares of Globe Life Inc. common stock at a total cost of $226 million and an average share price of $121.13.

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 $14.25 to $14.65 per diluted common share for the year ending December 31, 2025, reaffirming the previous guidance.

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 https://investors.globelifeinsurance.com 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 U.S. and other countries, and other governmental actions on the U.S. economy and/or U.S. consumer confidence, leading to unexpected changes in lapse rates and/or sales of our policies, as well as levels of mortality, morbidity, and utilization of health care services that differ from Globe Life's assumptions;

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 second quarter 2025 earnings release conference call with financial analysts at 11:00 pm (Eastern) tomorrow, July 24, 2025. Access to the live webcast and replay will be available at https://investors.globelifeinsurance.com 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."  

APPENDIX


GLOBE LIFE INC.

GAAP CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS



Three Months Ended

June 30,


Six Months Ended

June 30,


2025


2024


2025


2024

Revenue:








Life premium

$         839,544


$         815,482


$     1,669,407


$     1,619,747

Health premium

378,099


351,643


747,890


692,662

Other premium




Total premium

1,217,643


1,167,125


2,417,297


2,312,409

Net investment income

282,169


285,636


562,783


568,214

Realized gains (losses)

(18,574)


(12,589)


(18,489)


(24,388)

Other income

49


74


118


150

Total revenue

1,481,287


1,440,246


2,961,709


2,856,385









Benefits and expenses:








Life policyholder benefits(1)

519,355


518,792


1,029,111


1,038,663

Health policyholder benefits(2)

229,924


205,423


463,853


407,750

Other policyholder benefits

6,719


11,479


13,799


21,074

Total policyholder benefits

755,998


735,694


1,506,763


1,467,487

Amortization of deferred acquisition costs

111,401


101,915


216,916


201,393

Commissions, premium taxes, and non-deferred acquisition costs

157,411


149,802


321,734


297,912

Other operating expense

108,293


99,108


217,039


192,322

Interest expense

34,885


31,404


69,877


60,025

Total benefits and expenses

1,167,988


1,117,923


2,332,329


2,219,139









Income before income taxes

313,299


322,323


629,380


637,246

Income tax benefit (expense)

(60,550)


(63,968)


(122,068)


(124,674)

Net income

$         252,749


$         258,355


$         507,312


$         512,572









Basic net income per common share

$                3.09


$                2.83


$               6.13


$               5.53









Diluted net income per common share

$                3.05


$                2.83


$               6.07


$               5.51



(1)

Net of total remeasurement  gain of $16.7 million for the three months ended June 30, 2025, and a total remeasurement gain of $12.4 million for the same period in 2024. Net of total remeasurement  gain of $25.3 million for the six months ended June 30, 2025, and a total remeasurement gain of $17.3 million for the same period in 2024.

(2)

Net of a total remeasurement gain of $3.9 million for the three months ended June 30, 2025, and a total remeasurement gain of $3.2 million for the same period in 2024. Net of a total remeasurement gain of $4.3 million for the six months ended June 30, 2025, and a total remeasurement gain of $6.5 million for the same period in 2024.

 

Cision View original content to download multimedia:https://www.prnewswire.com/news-releases/globe-life-inc-reports-second-quarter-2025-results-302512308.html

SOURCE Globe Life Inc.

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