GLOBE LIFE INC. REPORTS FOURTH QUARTER 2024 RESULTS
Globe Life Inc. (NYSE: GL) reported strong financial results for Q4 2024, with net income of $3.01 per diluted share compared to $2.88 in Q4 2023. Net operating income reached $3.14 per diluted share, up from $2.80 year-over-year.
Key highlights include: net income ROE of 21.7% for 2024, life insurance net sales growth of 11%, and health insurance net sales increase of 6% in Q4. The American Income Life Division showed particularly strong performance with a 22% increase in life net sales and 7% growth in life premium. The company's insurance underwriting margin improved, with life insurance accounting for 79% of the total margin.
Notable operational metrics include a 4% growth in net investment income, and increased agent counts across divisions. The company repurchased 337,821 shares during Q4 at an average price of $105.37. For 2025, Globe Life projects net operating income between $13.45 to $14.05 per diluted share.
Globe Life Inc. (NYSE: GL) ha riportato risultati finanziari solidi per il quarto trimestre del 2024, con un utile netto di 3,01 $ per azione diluita rispetto a 2,88 $ nel quarto trimestre del 2023. L'utile operativo netto ha raggiunto 3,14 $ per azione diluita, in aumento rispetto a 2,80 $ rispetto all'anno precedente.
Tra i principali punti salienti: un ROE dell'utile netto del 21,7% per il 2024, una crescita delle vendite nette di assicurazioni sulla vita dell'11% e un aumento delle vendite nette di assicurazioni sanitarie del 6% nel quarto trimestre. La divisione American Income Life ha mostrato performance particolarmente forti con un aumento del 22% nelle vendite nette di vita e una crescita del 7% nei premi vita. Il margine di sottoscrizione delle assicurazioni dell'azienda è migliorato, con l'assicurazione sulla vita che rappresenta il 79% del margine totale.
Tra i principali indicatori operativi ci sono una crescita del 4% nei redditi da investimenti netti e un aumento nel numero di agenti in tutte le divisioni. L'azienda ha riacquistato 337.821 azioni durante il quarto trimestre a un prezzo medio di 105,37 $. Per il 2025, Globe Life prevede un utile operativo netto compreso tra 13,45 $ e 14,05 $ per azione diluita.
Globe Life Inc. (NYSE: GL) reportó sólidos resultados financieros para el cuarto trimestre de 2024, con un ingreso neto de 3,01 $ por acción diluida en comparación con 2,88 $ en el cuarto trimestre de 2023. El ingreso operativo neto alcanzó 3,14 $ por acción diluida, en comparación con 2,80 $ del año anterior.
Los aspectos destacados incluyen: un ROE de ingreso neto del 21,7% para 2024, un crecimiento de las ventas netas de seguros de vida del 11% y un aumento del 6% en las ventas netas de seguros de salud en el cuarto trimestre. La división American Income Life mostró un desempeño particularmente fuerte con un aumento del 22% en las ventas netas de vida y un crecimiento del 7% en las primas de vida. El margen de suscripción de seguros de la compañía mejoró, siendo el seguro de vida responsable del 79% del margen total.
Métricas operativas notables incluyen un crecimiento del 4% en los ingresos netos por inversiones y un aumento en el número de agentes en todas las divisiones. La compañía recompró 337.821 acciones durante el cuarto trimestre a un precio promedio de 105,37 $. Para 2025, Globe Life proyecta un ingreso operativo neto entre 13,45 $ y 14,05 $ por acción diluida.
글로브 라이프 Inc. (NYSE: GL)는 2024년 4분기 강력한 재무 결과를 보고했습니다. 희석주당 순이익은 3.01달러로 2023년 4분기의 2.88달러와 비교됩니다. 순영업소득은 3.14달러로, 1년 전의 2.80달러에서 증가하였습니다.
주요 점은 2024년 순이익 ROE가 21.7%, 생명보험 순판매 성장률이 11%, 건강보험 순판매 증가율이 4분기에 6%였습니다. 아메리칸 인컴 라이프 부문은 생명순판매에서 22% 증가하고 생명보험료에서 7% 성장하며 특히 강력한 성과를 보였습니다. 회사의 보험 인수 마진이 개선되었으며, 생명보험이 전체 마진의 79%를 차지합니다.
주목할 만한 운영 지표로는 순투자 수익이 4% 성장했으며, 모든 부문에서 대리인 수가 증가했습니다. 회사는 4분기 동안 평균 가격 105.37달러에 337,821주를 재구매했습니다. 2025년을 위해 Globe Life는 희석주당 순영업소득을 13.45달러에서 14.05달러 사이로 예상하고 있습니다.
Globe Life Inc. (NYSE: GL) a annoncé des résultats financiers solides pour le quatrième trimestre de 2024, avec un bénéfice net de 3,01 $ par action diluée contre 2,88 $ au quatrième trimestre 2023. Le bénéfice d'exploitation net a atteint 3,14 $ par action diluée, en hausse par rapport à 2,80 $ l'année précédente.
Les points forts incluent : un ROE du bénéfice net de 21,7 % pour 2024, une croissance des ventes nettes d'assurance-vie de 11 % et une augmentation des ventes nettes d'assurance santé de 6 % au quatrième trimestre. La division American Income Life a montré des performances particulièrement solides avec une augmentation de 22 % des ventes nettes de vie et une croissance de 7 % des primes d'assurance-vie. La marge de souscription d'assurance de l'entreprise s'est améliorée, l'assurance-vie représentant 79 % de la marge totale.
Les indicateurs opérationnels notables comprennent une croissance de 4 % des revenus nets d'investissement et une augmentation du nombre d'agents dans toutes les divisions. L'entreprise a racheté 337.821 actions au cours du quatrième trimestre à un prix moyen de 105,37 $. Pour 2025, Globe Life prévoit un bénéfice d'exploitation net compris entre 13,45 $ et 14,05 $ par action diluée.
Globe Life Inc. (NYSE: GL) hat für das vierte Quartal 2024 starke Finanzergebnisse gemeldet, mit einem Nettogewinn von 3,01 $ pro verwässerter Aktie im Vergleich zu 2,88 $ im vierten Quartal 2023. Das operative Nettoergebnis erreichte 3,14 $ pro verwässerter Aktie, ein Anstieg von 2,80 $ im Vergleich zum Vorjahr.
Wichtige Highlights sind: eine Nettogewinn-ROE von 21,7 % für 2024, ein Wachstum der Nettoversicherungsverkäufe im Lebensversicherungsbereich von 11 % und ein Anstieg der Nettoversicherungsverkäufe im Gesundheitsbereich von 6 % im vierten Quartal. Die American Income Life Division zeigte eine besonders starke Leistung mit einem Anstieg von 22 % bei den Lebendverkäufen und einem Wachstum von 7 % bei den Lebensprämien. Die Versicherungsunterzeichnungsspanne des Unternehmens verbesserte sich, wobei die Lebensversicherung 79 % der Gesamspanne ausmachte.
Bemerkenswerte betriebliche Kennzahlen sind ein Wachstum von 4 % im Nettogewinn aus Investitionen und ein Anstieg der Agentenzahlen in allen Divisionen. Das Unternehmen hat im vierten Quartal 337.821 Aktien zu einem Durchschnittspreis von 105,37 $ zurückgekauft. Für 2025 prognostiziert Globe Life ein operatives Nettoergebnis zwischen 13,45 $ und 14,05 $ pro verwässerter Aktie.
- Net operating income increased to $3.14 per share in Q4 2024 from $2.80 in Q4 2023
- Net income ROE reached 21.7% for 2024
- Life insurance net sales grew 11% in Q4
- American Income Life Division showed 22% increase in life net sales
- Net investment income grew 4% year-over-year
- Company repurchased 10.1 million shares in 2024 worth $946 million
- Health insurance underwriting margin declined 6% in Q4
- Administrative expenses ratio increased to 7.7% from 6.8% year-over-year
- Direct to Consumer life net sales decreased 11%
Insights
Globe Life's Q4 2024 results reveal a compelling growth story with several standout metrics. The company achieved a remarkable 21.7% ROE for the full year, while delivering a 12% increase in quarterly net operating income per share to
The insurance operations show impressive momentum across multiple divisions. American Income Life's 22% increase in life net sales, coupled with a 7% growth in both life premium and agent count, indicates strong execution of the company's distribution strategy. Liberty National and Family Heritage divisions also demonstrated robust growth with double-digit increases in agent counts, suggesting sustainable future premium growth.
The investment portfolio performance remains resilient with a 4% increase in net investment income, despite the challenging interest rate environment. The portfolio maintains high quality with 97% of fixed maturities rated investment grade, providing stable income while managing risk effectively.
Notable is the company's aggressive capital management strategy, with 10.1 million shares repurchased during 2024 at an average price of
The insurance underwriting margins tell a particularly compelling story, with life insurance contributing 79% of the underwriting margin on 70% of premium revenue, indicating superior profitability in the core business segment. The 41% life underwriting margin represents an improvement from
Net income for the year ended December 31, 2024 was
HIGHLIGHTS:
- Net income as an ROE was
21.7% for the twelve months ended December 31, 2024. Net operating income as an ROE excluding accumulated other comprehensive income (AOCI) was15.1% for the same period. - For the full year, net income increased
10% and net operating income increased8% . - At the American Income Life Division, life net sales increased
22% and life premium increased7% over the year-ago quarter. Additionally, the average producing agent count increased7% over the year-ago quarter. - At the Liberty National Division, life premiums increased
5% and the average producing agent count increased11% over the year-ago quarter. - At the Family Heritage Division, health net sales increased
6% and premiums increased8% over the year-ago quarter. Additionally, the average producing agent count increased11% over the year-ago quarter. - Net investment income grew
4% over the year-ago quarter. - 337,821 shares of Globe Life Inc. common stock 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
GLOBE LIFE INC. Earnings Release—Q4 2024 (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 December 31, 2024 and 2023:
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Operating Summary | |||||||||||
Per Share | |||||||||||
Three Months Ended December 31, | Three Months Ended December 31, | ||||||||||
2024 | 2023 | % Chg. | 2024 | 2023 | % Chg. | ||||||
Insurance underwriting income(2) | $ 3.99 | $ 3.43 | 16 | $ 337,984 | $ 327,825 | 3 | |||||
Excess investment income(2) | 0.45 | 0.38 | 18 | 38,325 | 35,824 | 7 | |||||
Interest on debt | (0.42) | (0.27) | 56 | (35,679) | (25,676) | 39 | |||||
Parent company expense | (0.04) | (0.03) | (3,234) | (2,612) | |||||||
Income tax expense | (0.72) | (0.68) | 6 | (61,150) | (64,993) | (6) | |||||
Stock compensation benefit (expense), net of tax | (0.12) | (0.03) | (10,437) | (2,955) | |||||||
Net operating income | 3.14 | 2.80 | 12 | 265,809 | 267,413 | (1) | |||||
Reconciling items, net of tax: | |||||||||||
Realized gain (loss)—investments | 0.02 | 0.11 | 1,890 | 10,496 | |||||||
Non-operating expenses | — | (0.03) | (13) | (2,396) | |||||||
Legal proceedings(4) | (0.15) | (0.01) | (12,490) | (711) | |||||||
Net income(3) | $ 3.01 | $ 2.88 | $ 255,196 | $ 274,802 | |||||||
Weighted average diluted shares outstanding | 84,749 | 95,464 | |||||||||
(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. | |
GLOBE LIFE INC. Earnings Release—Q4 2024 (Dollar amounts in thousands, except share and per share data) (Unaudited)
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The following table represents Globe Life's operating summary for the year ended December 31, 2024 and 2023: | |||||||||||
Operating Summary | |||||||||||
Per Share | |||||||||||
Year Ended December 31, | Year Ended December 31, | ||||||||||
2024 | 2023 | % Chg. | 2024 | 2023 | % Chg. | ||||||
Insurance underwriting income(1) | $ 15.51 | $ 13.27 | 17 | $ 1,390,226 | $ 1,278,548 | 9 | |||||
Excess investment income(1) | 1.83 | 1.35 | 36 | 164,404 | 130,382 | 26 | |||||
Interest on debt | (1.42) | (1.06) | 34 | (127,092) | (102,316) | 24 | |||||
Parent company expense | (0.14) | (0.11) | (12,400) | (10,866) | |||||||
Income tax expense | (3.05) | (2.59) | 18 | (273,121) | (249,546) | 9 | |||||
Stock compensation benefit (expense), net of tax | (0.37) | (0.20) | (33,033) | (19,558) | |||||||
Net operating income | 12.37 | 10.65 | 16 | 1,108,984 | 1,026,644 | 8 | |||||
Reconciling items, net of tax: | |||||||||||
Realized gain (loss)—investments | (0.21) | (0.54) | (19,108) | (51,884) | |||||||
Non-operating expenses | (0.02) | (0.03) | (2,070) | (3,294) | |||||||
Legal proceedings(3) | (0.19) | (0.01) | (17,044) | (711) | |||||||
Net income(2) | $ 11.94 | $ 10.07 | $ 1,070,762 | $ 970,755 | |||||||
Weighted average diluted shares outstanding | 89,661 | 96,364 | |||||||||
(1) Definitions included within this document. |
(2) A GAAP-basis condensed consolidated statement of operations is included in the appendix of this report. |
(3) Refer to footnote (4) of the Operating Summary on the previous page. |
GLOBE LIFE INC. Earnings Release—Q4 2024 (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. | |||
Year Ended December 31, | |||
2024 | 2023 | ||
Net income | $ 1,070,762 | $ 970,755 | |
Net operating income | 1,108,984 | 1,026,644 | |
Net income as an ROE(1) | 21.7 % | 23.2 % | |
Net operating income as an ROE (excluding AOCI)(1) | 15.1 % | 14.7 % | |
December 31, | |||
2024 | 2023 | ||
Shareholders' equity | $ 5,305,520 | $ 4,486,803 | |
Impact of adjustment to exclude AOCI | 2,029,720 | 2,772,419 | |
Shareholders' equity, excluding AOCI | $ 7,335,240 | $ 7,259,222 | |
Book value per share | $ 62.50 | $ 47.10 | |
Impact of adjustment to exclude AOCI | 23.90 | 29.11 | |
Book value per share, excluding AOCI | $ 86.40 | $ 76.21 | |
(1) Calculated using average shareholders' equity for the measurement period. |
GLOBE LIFE INC. Earnings Release—Q4 2024 (Dollar amounts in thousands, except share and per share data) (Unaudited) INSURANCE OPERATIONS:
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Life insurance accounted for Health insurance accounted for Net sales of life insurance increased The following table summarizes Globe Life's premium revenue by product type for the three months ended December 31, 2024 and 2023:
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Insurance Premium Revenue | |||||
Quarter Ended | |||||
December 31, | December 31, | % Chg. | |||
Life insurance | $ 822,962 | $ 794,815 | 4 | ||
Health insurance | 358,308 | 335,857 | 7 | ||
Total | $ 1,181,270 | $ 1,130,672 | 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 December 31, 2024 and 2023:
Insurance Underwriting Income | |||||||||
Quarter Ended | |||||||||
December 31, | % of Premium | December 31, | % of Premium | % Chg. | |||||
Insurance underwriting margins: | |||||||||
Life | $ 336,080 | 41 | $ 305,480 | 38 | 10 | ||||
Health | 91,202 | 25 | 97,486 | 29 | (6) | ||||
427,282 | 402,966 | 6 | |||||||
Annuity and other income | 2,060 | 2,069 | |||||||
Administrative expenses | (91,358) | (77,210) | |||||||
Insurance underwriting income | $ 337,984 | $ 327,825 | 3 | ||||||
Per share | $ 3.99 | $ 3.43 | 16 | ||||||
The ratio of administrative expenses to premium was
GLOBE LIFE INC. Earnings Release—Q4 2024 (Dollar amounts in thousands, except share and per share data) (Unaudited)
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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."
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Life Underwriting Margin | |||||||||
Quarter Ended | |||||||||
December 31, | |||||||||
2024 | 2023 | ||||||||
Amount | % of | Amount | % of | % | |||||
American Income | $ 198,970 | 46 | $ 183,176 | 45 | 9 | ||||
Direct to Consumer | 71,236 | 29 | 59,241 | 24 | 20 | ||||
Liberty National | 33,650 | 36 | 31,144 | 35 | 8 | ||||
Other | 32,224 | 64 | 31,919 | 62 | 1 | ||||
Total | $ 336,080 | 41 | $ 305,480 | 38 | 10 | ||||
Life Premium | |||||
Quarter Ended | |||||
December 31, | |||||
2024 | 2023 | % Chg. | |||
American Income | $ 432,792 | $ 406,356 | 7 | ||
Direct to Consumer | 245,218 | 247,274 | (1) | ||
Liberty National | 94,462 | 89,700 | 5 | ||
Other | 50,490 | 51,485 | (2) | ||
Total | $ 822,962 | $ 794,815 | 4 | ||
Life Net Sales(1) | |||||
Quarter Ended | |||||
December 31, | |||||
2024 | 2023 | % Chg. | |||
American Income | $ 93,343 | $ 76,323 | 22 | ||
Direct to Consumer | 23,059 | 25,861 | (11) | ||
Liberty National | 26,316 | 26,046 | 1 | ||
Other | 2,211 | 2,188 | 1 | ||
Total | $ 144,929 | $ 130,418 | 11 | ||
(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—Q4 2024 (Dollar amounts in thousands, except share and per share data) (Unaudited)
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HEALTH INSURANCE RESULTS BY DISTRIBUTION CHANNEL | |||||||||
Health Underwriting Margin | |||||||||
Quarter Ended | |||||||||
December 31, | |||||||||
2024 | 2023 | ||||||||
Amount | % of | Amount | % of | % | |||||
United American | $ 5,464 | 4 | $ 14,180 | 10 | (61) | ||||
Family Heritage | 39,997 | 36 | 35,633 | 35 | 12 | ||||
Liberty National | 26,852 | 56 | 27,157 | 57 | (1) | ||||
American Income | 18,788 | 61 | 19,080 | 62 | (2) | ||||
Direct to Consumer | 101 | 1 | 1,436 | 8 | (93) | ||||
Total | $ 91,202 | 25 | $ 97,486 | 29 | (6) | ||||
Health Premium | |||||
Quarter Ended | |||||
December 31, | |||||
2024 | 2023 | % Chg. | |||
United American | $ 151,399 | $ 138,586 | 9 | ||
Family Heritage | 110,589 | 102,180 | 8 | ||
Liberty National | 47,769 | 47,416 | 1 | ||
American Income | 30,628 | 30,676 | — | ||
Direct to Consumer | 17,923 | 16,999 | 5 | ||
Total | $ 358,308 | $ 335,857 | 7 | ||
Health Net Sales(1) | |||||
Quarter Ended | |||||
December 31, | |||||
2024 | 2023 | % Chg. | |||
United American | $ 30,116 | $ 28,155 | 7 | ||
Family Heritage | 26,761 | 25,228 | 6 | ||
Liberty National | 8,910 | 9,349 | (5) | ||
American Income | 5,151 | 4,235 | 22 | ||
Direct to Consumer | 2,698 | 2,220 | 22 | ||
Total | $ 73,636 | $ 69,187 | 6 | ||
(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—Q4 2024 (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 | ||||||
December 31, | September 30, | ||||||
2024 | 2023 | % Chg. | 2024 | ||||
American Income | 11,926 | 11,131 | 7 | 12,031 | |||
Liberty National | 3,743 | 3,387 | 11 | 3,794 | |||
Family Heritage | 1,512 | 1,368 | 11 | 1,429 | |||
(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 | |||||
December 31, | |||||
2024 | 2023 | % Chg. | |||
Net investment income | $ 282,453 | $ 271,609 | 4 | ||
Interest on policy liabilities(1) | (244,128) | (235,785) | 4 | ||
Excess investment income | $ 38,325 | $ 35,824 | 7 | ||
Per share | $ 0.45 | $ 0.38 | 18 | ||
(1) | Interest on policy liabilities, at original discount rates, is a component of total policyholder benefits, a GAAP measure. |
Net investment income increased
GLOBE LIFE INC. Earnings Release—Q4 2024 (Dollar amounts in thousands, except share and per share data) (Unaudited)
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The composition of the investment portfolio at book value at December 31, 2024 is as follows: | |||
Investment Portfolio | |||
As of | |||
December 31, 2024 | |||
Amount | % of Total | ||
Fixed maturities at fair value(1) | $ 17,155,012 | 88 | |
Mortgage loans | 396,088 | 2 | |
Policy loans | 699,669 | 4 | |
Other long-term investments(2) | 1,235,759 | 6 | |
Short-term investments | 85,035 | — | |
Total | $ 19,571,563 | ||
(1) | As of December 31, 2024, fixed maturities at amortized cost were |
(2) | Includes |
Fixed maturities at amortized cost, net of allowance for credit losses, by asset class as of December 31, 2024 are as follows:
Fixed Maturity Portfolio by Sector | |||||
As of | |||||
December 31, 2024 | |||||
Investment | Below | Total | |||
Corporate bonds | $ 14,482,274 | $ 487,443 | $ 14,969,717 | ||
Municipals | 3,300,901 | — | 3,300,901 | ||
Government, agencies, and GSEs(1) | 438,636 | — | 438,636 | ||
Collateralized debt obligations | — | 36,923 | 36,923 | ||
Other asset-backed securities | 74,483 | 4,754 | 79,237 | ||
Total | $ 18,296,294 | $ 529,120 | $ 18,825,414 | ||
(1) Government-Sponsored Enterprises |
Below are fixed maturities available for sale by amortized cost, allowance for credit losses, and fair value at December 31, 2024 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 | |||
December 31, 2024 | $ 18,835,809 | $ (10,395) | $ (1,670,402) | $ 17,155,012 |
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—Q4 2024 (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 | |||
December 31, | |||
2024 | 2023 | ||
Amount | $ 377,772 | $ 443,385 | |
Average annual effective yield | 5.8 % | 6.6 % | |
Average rating | A- | BBB+ | |
Average life (in years) to: | |||
Next call | 28.1 | 20.3 | |
Maturity | 34.8 | 23.2 | |
Other Investment Acquisitions | |||
Quarter Ended | |||
December 31, | |||
2024 | 2023 | ||
Limited partnerships | $ 12,365 | $ 50,929 | |
Mortgage loans | 39,850 | 62,827 | |
Common stock | 2,081 | 1,958 | |
Total | $ 54,296 | $ 115,714 | |
SHARE REPURCHASE:
During the quarter, the Company repurchased 337,821 shares of Globe Life Inc. common stock at a total cost of
For the year ended December 31, 2024, the Company repurchased 10.1 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 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 continued impact of inflation, geopolitical events, and the recent pandemic on 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. 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 fourth quarter 2024 earnings release conference call with financial analysts at 11:00 am (Eastern) tomorrow, February 6, 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."
GLOBE LIFE INC. Earnings Release—Q4 2024 (Dollar amounts in thousands, except share and per share data) (Unaudited) APPENDIX GLOBE LIFE INC. GAAP CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||
Three Months Ended December 31, | Year Ended December 31, | ||||||
2024 | 2023 | 2024 | 2023 | ||||
Revenue: | |||||||
Life premium | $ 822,962 | $ 794,815 | $ 3,261,347 | $ 3,137,244 | |||
Health premium | 358,308 | 335,857 | 1,404,925 | 1,318,773 | |||
Other premium | — | — | — | — | |||
Total premium | 1,181,270 | 1,130,672 | 4,666,272 | 4,456,017 | |||
Net investment income | 282,453 | 271,609 | 1,135,631 | 1,056,884 | |||
Realized gains (losses) | 2,392 | 13,287 | (24,188) | (65,676) | |||
Other income | 162 | 123 | 354 | 308 | |||
Total revenue | 1,466,277 | 1,415,691 | 5,778,069 | 5,447,533 | |||
Benefits and expenses: | |||||||
Life policyholder benefits(1) | 507,812 | 514,472 | 2,000,977 | 2,050,789 | |||
Health policyholder benefits(2) | 221,901 | 195,686 | 851,577 | 776,362 | |||
Other policyholder benefits | 9,059 | 9,612 | 41,889 | 37,100 | |||
Total policyholder benefits | 738,772 | 719,770 | 2,894,443 | 2,864,251 | |||
Amortization of deferred acquisition costs | 104,298 | 97,541 | 410,001 | 379,700 | |||
Commissions, premium taxes, and non-deferred | 153,148 | 144,234 | 600,753 | 559,167 | |||
Other operating expense | 121,947 | 91,759 | 419,143 | 347,833 | |||
Interest expense | 35,679 | 25,676 | 127,092 | 102,316 | |||
Total benefits and expenses | 1,153,844 | 1,078,980 | 4,451,432 | 4,253,267 | |||
Income before income taxes | 312,433 | 336,711 | 1,326,637 | 1,194,266 | |||
Income tax benefit (expense) | (57,237) | (61,909) | (255,875) | (223,511) | |||
Net income | $ 255,196 | $ 274,802 | $ 1,070,762 | $ 970,755 | |||
Basic net income per common share | $ 3.04 | $ 2.92 | $ 11.99 | $ 10.21 | |||
Diluted net income per common share | $ 3.01 | $ 2.88 | $ 11.94 | $ 10.07 | |||
(1) | Net of total remeasurement including both the impact of assumption changes and the effect of actual to expected experience adjustments, resulting in a gain of |
(2) | Net of a total remeasurement, including both the impact of assumption changes and the effect of actual to expected experience adjustments, resulting in a loss of |
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SOURCE Globe Life Inc.
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