Globe Life Inc. announced its first quarter financial results with an adjusted earnings per share (EPS) of $2.78, slightly below analyst expectations of $2.79. The company’s revenue matched the consensus estimate, reporting $1.42 billion for the quarter ended March 31, 2024.
The insurance provider noted a year-over-year (YoY) increase in net income, which rose from $2.28 to $2.67 per diluted common share, marking a 14% improvement. Similarly, adjusted net operating income for the quarter saw a 10% increase from the year-ago quarter, climbing from $2.53 to $2.78 per diluted common share. This growth is attributed to a 5% rise in total underwriting margin and a 10% increase in net investment income compared to the same period last year.
Globe Life’s insurance underwriting income also experienced a 4% YoY increase, reaching $324,361 in thousands. The life insurance segment, which accounted for 76% of the company’s underwriting margin and 70% of total premium revenue, reported a 4% rise in life insurance premiums. ..Health insurance premiums increased by 6%, contributing 23% to the company’s underwriting margin and accounting for 30% of the total premium revenue.
The company’s American Income Life Division saw significant growth, with life net sales and premiums increasing by 17% and 7%, respectively. This division also reported a 15% increase in the average producing agent count over the year-ago quarter. The Liberty National Division and Family Heritage Division also reported increases in life premiums and health net sales.
Despite the slight miss on EPS, the company’s consistent performance and growth in key areas, such as underwriting margin and investment income, reflect a stable operational trend. However, no specific guidance for future quarters or fiscal year was provided in the release to compare with analyst consensus.
Globe Life’s management expressed confidence in the company’s financial results, with a focus on the long-term strategy. “Our first quarter results demonstrate the strength and resilience of our business model, as we continue to deliver solid performance across our key metrics,” said Globe Life’s CEO.
The absence of stock movement percentage and the driver of the move indicates that the market response to Globe Life’s earnings release is not available at this time. Therefore, the market’s reaction to these financial results cannot be assessed in this report.
