Globe Life Inc. Issues Statement Refuting False Short Seller Report
Rhea-AI Summary
Globe Life Inc. (NYSE: GL) has issued a statement refuting allegations made in a Viceroy Research report. The company explains that following the pandemic, American Income Life (AIL) transitioned to a virtual business model, leading to an increase in agent count from 8,000 in March 2020 to over 12,000 in November 2024. The company maintains 17 million policies in force, making it the largest life insurance policy issuer in the country.
Globe Life strongly denies the short seller's claims about disconnected phone numbers and closed businesses, stating that all businesses mentioned in the report remain operational. The company characterizes the report as a dishonest attempt to damage its reputation and manipulate stock prices for short-term profit.
Positive
- Agent count increased by 50% from 8,000 to 12,000 between March 2020 and November 2024
- Company maintains leadership position with 17 million policies in force
- Successful transition to virtual business model reduced overhead costs
Negative
- Company facing allegations from short seller report potentially affecting stock price
- Concerns raised about business operations requiring public clarification
News Market Reaction 1 Alert
On the day this news was published, GL declined 3.14%, reflecting a moderate negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
Following the rapid onset of the pandemic, American Income Life (AIL) and its independent agency owners began transitioning to a virtual business model, which in turn led many agency owners to realign their real estate portfolios. By enabling our agents to work virtually, providing work flexibility and eliminating overhead costs to better build their own businesses, AIL's agent count increased from over 8,000 agents in March of 2020 to over 12,000 in November of 2024. This virtual business model has helped enable the Globe Life family of companies to issue more life insurance policies and protect more policyholders than any other life insurance company in the country, with more than 17 million policies in force.
Once again, an opportunistic short seller has presented a false picture of AIL's presence across the country. To be clear, every single business named in the report is still in operation. We verified that the report listing of disconnected phone numbers is inaccurate and misleading. These independent agency offices operate from various virtual and physical locations, allowing agents to service customers across the country more efficiently. The short seller's misrepresentation of our strategy is yet another dishonest and cynical effort to harm the Company's reputation, manufacture a drop in the stock price, and reap a short-term profit at the expense of our people, our investors, and the millions of individuals and families we protect.
Media Contact:
Jennifer Haworth
Executive Vice President and Chief Marketing Officer
jhaworth@Globe.Life
Investor Contact:
Stephen Mota
Senior Director Investor Relations
Investors@globe.life
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SOURCE Globe Life
FAQ
What allegations is Globe Life (GL) responding to in December 2024?
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What business model changes did Globe Life (GL) implement during the pandemic?
