Globe Life Q2 Earnings & Revenues Top Estimates on Strong Underwriting

Globe Life Inc.’s GL second-quarter 2025 net operating income of $3.27 per share beat the Zacks Consensus Estimate by 0.6%. The bottom line improved 10.1% year over year, primarily driven by higher Life insurance underwriting income. Globe Life’s second-quarter results reflected higher Life and Health insurance premiums, increased underwriting income, partially offset by lower investment income, and elevated expenses.Behind the HeadlinesGlobe Life reported total premium revenues of $1.2 billion, up 4% 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 $282.2 million.The company reported operating revenues of $1.5 billion, up 3.2% from the year-ago quarter. The improvement was driven by growth in Life and Health insurance premiums. The top line missed the Zacks Consensus Estimate by 0.4%.Globe Life Inc. Price, Consensus and EPS Surprise Globe Life Inc. price-consensus-eps-surprise-chart | Globe Life Inc. QuoteExcess investment income, a measure of profitability, decreased 19% year over year to $34.8 million.Total insurance underwriting income increased 4% year over year to $354.2 million. The increase was due to higher Life underwriting income.Administrative expenses were up 4.7% year over year to $86 million.Total benefits and expenses surged 89% year over year to $1.16 billion, primarily due to higher total policyholder benefits, amortization of deferred acquisition costs, commissions, premium taxes, and non-deferred acquisition costs, as well as other operating expenses and interest expenses.Segmental ResultsPremium revenues at Life increased 3.1% year over year to $840 million, driven by higher premiums written by distribution channels like American Income and Liberty National. American Income grew 5% and Liberty National gained 5% year over year.Net sales of $154.8 million increased 1% year over year. Underwriting margins increased 6% year over year to $340 million.Health insurance premium revenues rose 8% year over year to $378 million, primarily driven by higher premiums from United American, Family Heritage, American Income and Direct to Consumer.Net health sales increased 19% year over year to $68.7 million. Underwriting margins decreased 2% year over year to $98.1 million.Financial UpdateShareholders’ equity, excluding accumulated other comprehensive income (AOCI), as of June 30, 2025, decreased 0.2% year over year to $7.4 billion.As of June 30, 2025, Globe Life reported book value per share, excluding AOCI, of $90.26, up 9.6% year over year.Operating return on equity, excluding AOCI, was 14.4% in the reported quarter, which contracted 10 basis points year over year.Share RepurchaseGlobe Life repurchased 1.9 million shares worth $226 million in the reported quarter.2025 ViewGL projects net operating income in the range of $14.25-$14.65 per share for the year ending Dec. 31, 2025.Zacks RankGlobe 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 StocksRLI Corp. RLI reported second-quarter 2025 operating earnings of 84 cents per share, beating the Zacks Consensus Estimate by 12%.  The bottom line, however, decreased 2.3% from the prior-year quarter. Operating revenues for the reported quarter were $441 million, up 6.9% year over year, driven by 6% higher net premiums earned and 16% higher net investment income. The top line, however, missed the Zacks Consensus Estimate by 0.5%. Net investment income increased 16% year over year to $39.4 million, which is in line with our estimate. The Zacks Consensus Estimate was pegged at $38.9 million. The investment portfolio’s total return was 2.9% in the quarter.Chubb Limited CB reported second-quarter 2025 core operating income of $6.14 per share, which outpaced the Zacks Consensus Estimate by 4.2%. The bottom line increased 14.1% year over year. Net premiums written improved 6.3% year over year to $14.2 billion in the quarter, which is in line with the Zacks Consensus Estimate. Our estimate was pegged at $14 billion. Net investment income was $1.5 billion, up 6.8 % year over year. The Zacks Consensus Estimate was pegged at $1.8 billion, while our estimate for the same was $1.9 billion. Revenues of $14.8 million missed the Zacks Consensus Estimate by a whisker but improved 6.9% year over year.W.R. Berkley's WRB second-quarter 2025 operating income of $1.05 per share beat the Zacks Consensus Estimate of $1.03 per share. The bottom line increased about 1% year over year.  Operating revenues came in at $3.6 billion, up 7.9% year over year, on the back of higher net premiums earned as well as improved net investment income, higher insurance service fees and other income. The top line beat the consensus estimate by 1.8%.Catastrophe losses of $99.2 million in the quarter were wider than $89.7 million incurred in the year-ago quarter. The consolidated combined ratio (a measure of underwriting profitability) deteriorated 50 bps year over year to 92.1. The Zacks Consensus Estimate was 91.7 Best Stocks for the Next 30 DaysJust released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.5% per year. So be sure to give these hand picked 7 your immediate attention. See them now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report RLI Corp. (RLI): Free Stock Analysis Report Chubb Limited (CB): Free Stock Analysis Report W.R. Berkley Corporation (WRB): Free Stock Analysis Report Globe Life Inc. (GL): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks