MCKINNEY, Texas, Oct. 23,
2024 /PRNewswire/ -- Globe Life Inc. (NYSE: GL)
reported today that for the quarter ended September 30, 2024, net income was $3.44 per diluted common share, compared with
$2.68 per diluted common share for
the year-ago quarter. Net operating income for the quarter was
$3.49 per diluted common share,
compared with $2.71 per diluted
common share for the year-ago quarter.
HIGHLIGHTS:
- Net income as an ROE(1) was 22.4% for the nine
months ended September 30, 2024. Net
operating income as an ROE(1) excluding accumulated other
comprehensive income (AOCI) was 15.3% for the same period.
- Net income(1) increased 18% and net operating income
increased 19% over the year-ago quarter.
- At the American Income Life Division, life net sales and life
premiums increased over the year-ago quarter by 19% and 7%,
respectively. Additionally, the average producing agent count
increased 10% over the year-ago quarter.
- At the Liberty National Division, the average producing agent
count increased 14% over the year-ago quarter and life premiums
increased 6%.
- At the Family Heritage Division, health net sales increased 16%
and health premiums increased 8% over the year-ago quarter.
Additionally, the average producing agent count increased 8% over
the year-ago quarter.
- Total underwriting margin(1) increased 19% over the
year-ago quarter.
- Net investment income grew 7% over the year-ago quarter.
- 5.8 million shares of Globe Life Inc. common stock at a total
cost of $580 million were repurchased
during the quarter.
|
(1) Includes a $46.3
million remeasurement gain due to the unlocking of assumptions in
the third quarter of 2024, as compared to a $3.2 million
remeasurement gain due to the unlocking of assumptions in the
year-ago quarter. These amounts, along with the experience-related
adjustments, are included within the remeasurement gain or loss in
the Consolidated Statement of Operations.
|
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—Q3 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 September 30, 2024 and 2023:
|
|
|
Operating
Summary
|
|
Per
Share
|
|
|
|
|
|
|
|
Three Months
Ended
September
30,
|
|
|
|
Three Months
Ended
September
30,
|
|
|
|
2024
|
|
2023
|
|
%
Chg.
|
|
2024
|
|
2023
|
|
%
Chg.
|
|
Insurance underwriting
income(2)
|
$
4.40
|
|
$
3.38
|
|
30
|
|
$ 387,444
|
|
$ 324,330
|
|
19
|
|
Excess investment
income(2)
|
0.45
|
|
0.35
|
|
29
|
|
39,503
|
|
33,918
|
|
16
|
|
Interest on
debt
|
(0.36)
|
|
(0.27)
|
|
33
|
|
(31,388)
|
|
(25,955)
|
|
21
|
|
Parent company
expense
|
(0.04)
|
|
(0.03)
|
|
|
|
(3,210)
|
|
(2,581)
|
|
|
|
Income tax
expense
|
(0.87)
|
|
(0.67)
|
|
30
|
|
(76,887)
|
|
(63,903)
|
|
20
|
|
Stock compensation
benefit (expense), net of tax
|
(0.09)
|
|
(0.06)
|
|
|
|
(7,603)
|
|
(6,096)
|
|
|
|
Net operating
income
|
3.49
|
|
2.71
|
|
29
|
|
307,859
|
|
259,713
|
|
19
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciling items,
net of tax:
|
|
|
|
|
|
|
|
|
|
|
|
|
Realized gain
(loss)—investments
|
(0.02)
|
|
(0.02)
|
|
|
|
(1,732)
|
|
(1,732)
|
|
|
|
Non-operating
expenses
|
(0.01)
|
|
(0.01)
|
|
|
|
(503)
|
|
(898)
|
|
|
|
Legal costs and
proceedings
|
(0.03)
|
|
—
|
|
|
|
(2,630)
|
|
—
|
|
|
|
Net
income(3)
|
$
3.44
|
|
$
2.68
|
|
|
|
$ 302,994
|
|
$ 257,083
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
diluted shares outstanding
|
88,087
|
|
95,818
|
|
|
|
|
|
|
|
|
|
(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—Q3 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.
|
|
|
Nine Months
Ended
September
30,
|
|
2024
|
|
2023
|
|
Net income
|
$
815,566
|
|
$
695,953
|
|
Net operating
income
|
843,175
|
|
759,231
|
|
Net income as an
ROE(1)
|
22.4 %
|
|
22.6 %
|
|
Net operating income as
an ROE (excluding AOCI)(1)
|
15.3 %
|
|
14.7 %
|
|
|
|
|
|
September
30,
|
|
2024
|
|
2023
|
|
Shareholders'
equity
|
$ 4,638,625
|
|
$ 4,623,131
|
|
Impact of adjustment to
exclude AOCI
|
2,484,743
|
|
2,458,974
|
|
Shareholders' equity,
excluding AOCI
|
$ 7,123,368
|
|
$ 7,082,105
|
|
|
|
|
|
Book value per
share
|
$
54.65
|
|
$
48.51
|
|
Impact of adjustment to
exclude AOCI
|
29.27
|
|
25.80
|
|
Book value per share,
excluding AOCI
|
$
83.92
|
|
$
74.31
|
|
(1) Calculated using
average shareholders' equity for the measurement
period.
|
INSURANCE OPERATIONS:
Life insurance accounted for 81% of the Company's insurance
underwriting margin for the quarter and 70% of total premium
revenue.
Health insurance accounted for 18% of the Company's insurance
underwriting margin for the quarter and 30% of total premium
revenue.
Net sales of life insurance increased 10% for the quarter, and
net health sales increased 8%.
The following table summarizes Globe Life's premium revenue by
product type for the three months ended September 30, 2024 and 2023:
|
GLOBE LIFE INC.
Earnings Release—Q3 2024
(Dollar amounts in
thousands, except share and per share data)
(Unaudited)
|
|
|
Insurance Premium
Revenue
|
|
Quarter
Ended
|
|
September 30,
2024
|
|
September 30,
2023
|
|
%
Chg.
|
|
Life
insurance
|
$
818,638
|
|
$
788,099
|
|
4
|
|
Health
insurance
|
353,955
|
|
331,236
|
|
7
|
|
Annuity
|
—
|
|
—
|
|
|
|
Total
|
$
1,172,593
|
|
$
1,119,335
|
|
5
|
|
INSURANCE
UNDERWRITING INCOME
|
|
Insurance underwriting
margin is management's measure of profitability of the Company's
life, health, and annuity 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, health, and annuity segments,
plus 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 September 30, 2024 and 2023:
|
|
|
Insurance
Underwriting Income
|
|
Quarter
Ended
|
|
September 30,
2024
|
|
% of
Premium
|
|
September 30,
2023
|
|
% of
Premium
|
|
%
Chg.
|
|
Insurance underwriting
margins:
|
|
|
|
|
|
|
|
|
|
|
Life
|
$
387,183
|
|
47
|
|
$
300,088
|
|
38
|
|
29
|
|
Health
|
86,963
|
|
25
|
|
96,700
|
|
29
|
|
(10)
|
|
Annuity
|
1,721
|
|
|
|
2,077
|
|
|
|
|
|
475,867
|
|
|
|
398,865
|
|
|
|
19
|
|
Other income
|
42
|
|
|
|
50
|
|
|
|
|
|
Administrative
expenses
|
(88,465)
|
|
|
|
(74,585)
|
|
|
|
|
|
Insurance
underwriting income
|
$
387,444
|
|
|
|
$
324,330
|
|
|
|
19
|
|
Per
share
|
$
4.40
|
|
|
|
$
3.38
|
|
|
|
30
|
The ratio of administrative expenses to premium was 7.5%,
compared with 6.7% for the year-ago quarter.
|
GLOBE LIFE INC.
Earnings Release—Q3 2024
(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 agencies: American
Income Life Division (American Income), Liberty National Division
(Liberty National) and Family Heritage Division (Family Heritage);
an independent agency, United American Division (United American);
and our Direct to Consumer Division (Direct to
Consumer).
|
|
|
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
|
|
|
|
September
30,
|
|
|
|
2024
|
|
2023
|
|
|
|
Amount
|
|
% of
Premium
|
|
Amount
|
|
% of
Premium
|
|
%
Chg.
|
|
American
Income
|
$
221,246
|
|
52
|
|
$
181,098
|
|
45
|
|
22
|
|
Direct to
Consumer
|
88,279
|
|
36
|
|
63,058
|
|
25
|
|
40
|
|
Liberty
National
|
44,701
|
|
48
|
|
27,426
|
|
31
|
|
63
|
|
Other
|
32,957
|
|
65
|
|
28,506
|
|
55
|
|
16
|
|
Total
|
$
387,183
|
|
47
|
|
$
300,088
|
|
38
|
|
29
|
|
Life
Premium
|
|
Quarter
Ended
|
|
|
|
September
30,
|
|
|
|
2024
|
|
2023
|
|
%
Chg.
|
|
American
Income
|
$
427,839
|
|
$
400,214
|
|
7
|
|
Direct to
Consumer
|
246,425
|
|
247,858
|
|
(1)
|
|
Liberty
National
|
93,625
|
|
88,199
|
|
6
|
|
Other
|
50,749
|
|
51,828
|
|
(2)
|
|
Total
|
$
818,638
|
|
$
788,099
|
|
4
|
|
Life Net
Sales(1)
|
|
Quarter
Ended
|
|
|
|
September
30,
|
|
|
|
2024
|
|
2023
|
|
%
Chg.
|
|
American
Income
|
$
96,739
|
|
$
81,066
|
|
19
|
|
Direct to
Consumer
|
24,074
|
|
26,497
|
|
(9)
|
|
Liberty
National
|
24,352
|
|
24,165
|
|
1
|
|
Other
|
2,259
|
|
2,469
|
|
(9)
|
|
Total
|
$
147,424
|
|
$
134,197
|
|
10
|
|
(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—Q3 2024
(Dollar amounts in
thousands, except share and per share data)
(Unaudited)
|
|
|
HEALTH INSURANCE
RESULTS BY DISTRIBUTION CHANNEL
|
|
|
Health Underwriting
Margin
|
|
Quarter
Ended
|
|
|
|
September
30,
|
|
|
|
2024
|
|
2023
|
|
|
|
Amount
|
|
% of
Premium
|
|
Amount
|
|
% of
Premium
|
|
%
Chg.
|
|
United
American
|
$
14,023
|
|
9
|
|
$
15,473
|
|
11
|
|
(9)
|
|
Family
Heritage
|
34,032
|
|
32
|
|
35,605
|
|
36
|
|
(4)
|
|
Liberty
National
|
26,109
|
|
55
|
|
25,082
|
|
54
|
|
4
|
|
American
Income
|
10,840
|
|
35
|
|
19,033
|
|
62
|
|
(43)
|
|
Direct to
Consumer
|
1,959
|
|
11
|
|
1,507
|
|
9
|
|
30
|
|
Total
|
$
86,963
|
|
25
|
|
$
96,700
|
|
29
|
|
(10)
|
|
Health
Premium
|
|
Quarter
Ended
|
|
|
|
September
30,
|
|
|
|
2024
|
|
2023
|
|
%
Chg.
|
|
United
American
|
$
149,510
|
|
$
137,077
|
|
9
|
|
Family
Heritage
|
107,819
|
|
99,828
|
|
8
|
|
Liberty
National
|
47,277
|
|
46,643
|
|
1
|
|
American
Income
|
31,277
|
|
30,535
|
|
2
|
|
Direct to
Consumer
|
18,072
|
|
17,153
|
|
5
|
|
Total
|
$
353,955
|
|
$
331,236
|
|
7
|
|
Health Net
Sales(1)
|
|
Quarter
Ended
|
|
|
|
September
30,
|
|
|
|
2024
|
|
2023
|
|
%
Chg.
|
|
United
American
|
$
15,529
|
|
$
15,740
|
|
(1)
|
|
Family
Heritage
|
29,326
|
|
25,312
|
|
16
|
|
Liberty
National
|
8,122
|
|
8,652
|
|
(6)
|
|
American
Income
|
5,566
|
|
4,673
|
|
19
|
|
Direct to
Consumer
|
663
|
|
516
|
|
28
|
|
Total
|
$
59,206
|
|
$
54,893
|
|
8
|
|
(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—Q3 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
|
|
September
30,
|
|
|
|
June
30,
|
|
2024
|
|
2023
|
|
%
Chg.
|
|
2024
|
|
American
Income
|
12,031
|
|
10,983
|
|
10
|
|
11,869
|
|
Liberty
National
|
3,794
|
|
3,339
|
|
14
|
|
3,700
|
|
Family
Heritage
|
1,429
|
|
1,323
|
|
8
|
|
1,361
|
|
(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
|
|
September
30,
|
|
2024
|
|
2023
|
|
%
Chg.
|
|
Net investment
income
|
$
284,964
|
|
$
266,926
|
|
7
|
|
Interest on policy
liabilities(1)
|
(245,461)
|
|
(233,008)
|
|
5
|
|
Excess investment
income
|
$
39,503
|
|
$
33,918
|
|
16
|
|
Per share
|
$
0.45
|
|
$
0.35
|
|
29
|
|
(1)
|
Interest on policy
liabilities, at original discount rates, is a component of total
policyholder benefits, a GAAP measure.
|
Net investment income increased 7% and average invested assets
increased 5%. Required interest on policy liabilities increased 5%
and average policy liabilities increased 5%.
|
GLOBE LIFE INC.
Earnings Release—Q3 2024
(Dollar amounts in
thousands, except share and per share data)
(Unaudited)
|
|
|
The composition of the
investment portfolio at book value at September 30, 2024 is as
follows:
|
|
|
Investment
Portfolio
|
|
As of
|
|
September 30,
2024
|
|
Amount
|
|
% of
Total
|
|
Fixed maturities at
fair value(1)
|
$ 18,334,570
|
|
88
|
|
Mortgage
loans
|
381,315
|
|
2
|
|
Policy loans
|
691,072
|
|
3
|
|
Other long-term
investments(2)
|
1,221,888
|
|
6
|
|
Short-term
investments
|
100,501
|
|
—
|
|
Total
|
$ 20,729,346
|
|
|
|
(1)
|
As of September 30,
2024, fixed maturities at amortized cost were $19.1 billion, net of
$7.1 million of allowance for credit losses.
|
|
(2)
|
Includes $979 million
of investments accounted for under the fair value option which have
a cost of $967 million as of September 30, 2024.
|
Fixed maturities at amortized cost, net of allowance for credit
losses, by asset class as of September 30,
2024 are as follows:
|
Fixed Maturity
Portfolio by Sector
|
|
As of
|
|
September 30,
2024
|
|
Investment
Grade
|
|
Below
Investment
Grade
|
|
Total
Amortized
Cost, net
|
|
Corporate
bonds
|
$
14,752,056
|
|
$
511,426
|
|
$
15,263,482
|
|
Municipals
|
3,253,819
|
|
—
|
|
3,253,819
|
|
Government, agencies,
and GSEs(1)
|
439,763
|
|
—
|
|
439,763
|
|
Collateralized debt
obligations
|
—
|
|
36,685
|
|
36,685
|
|
Other asset-backed
securities
|
75,821
|
|
7,752
|
|
83,573
|
|
Total
|
$
18,521,459
|
|
$
555,863
|
|
$
19,077,322
|
|
(1)
Government-Sponsored Enterprises
|
Below are fixed maturities available for sale by amortized cost,
allowance for credit losses, and fair value at September 30, 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
|
|
September 30,
2024
|
$
19,084,454
|
|
$
(7,132)
|
|
$
(742,752)
|
|
$ 18,334,570
|
At amortized cost, net of allowance for credit losses, 97% of
fixed maturities (97% at fair value) were rated "investment grade."
The fixed maturity portfolio earned an annual taxable equivalent
effective yield of 5.25% during the third quarter of 2024, compared
with 5.19% 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—Q3 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
|
|
September
30,
|
|
2024
|
|
2023
|
|
Amount
|
$
81,569
|
|
$ 426,867
|
|
Average annual
effective yield
|
6.2 %
|
|
6.1 %
|
|
Average
rating
|
A-
|
|
A+
|
|
Average life (in years)
to:
|
|
|
|
|
Next call
|
18.3
|
|
16.6
|
|
Maturity
|
30.1
|
|
26.6
|
|
Other Investment
Acquisitions
|
|
Quarter
Ended
|
|
September
30,
|
|
2024
|
|
2023
|
|
Limited
partnerships
|
$
77,225
|
|
$
70,008
|
|
Mortgage
loans
|
42,500
|
|
29,559
|
|
Common stock
|
3,775
|
|
7,453
|
|
Company owned life
insurance
|
200,000
|
|
—
|
|
Total
|
$
323,500
|
|
$
107,020
|
SHARE REPURCHASE:
During the quarter, the Company repurchased 5.8 million shares
of Globe Life Inc. common stock at a total cost of $580 million and an average share price of
$100.34.
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, 2024 and 2025:
Globe Life projects net operating income between $12.20 to $12.40
per diluted common share for the year ending December 31, 2024. For the year ending
December 31, 2025, we estimate that
net operating income per share will be in the range of $13.20 to $13.90.
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
U.S. economy, 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. 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 third
quarter 2024 earnings release conference call with financial
analysts at 11:00 am (Eastern)
tomorrow, October 24, 2024. 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—Q3 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
September
30,
|
|
Nine Months
Ended
September
30,
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
Revenue:
|
|
|
|
|
|
|
|
|
Life
premium
|
$
818,638
|
|
$
788,099
|
|
$ 2,438,385
|
|
$ 2,342,429
|
|
Health
premium
|
353,955
|
|
331,236
|
|
1,046,617
|
|
982,916
|
|
Other
premium
|
—
|
|
—
|
|
—
|
|
—
|
|
Total
premium
|
1,172,593
|
|
1,119,335
|
|
3,485,002
|
|
3,325,345
|
|
Net investment
income
|
284,964
|
|
266,926
|
|
853,178
|
|
785,275
|
|
Realized gains
(losses)
|
(2,192)
|
|
(2,193)
|
|
(26,580)
|
|
(78,963)
|
|
Other
income
|
42
|
|
50
|
|
192
|
|
185
|
|
Total
revenue
|
1,455,407
|
|
1,384,118
|
|
4,311,792
|
|
4,031,842
|
|
|
|
|
|
|
|
|
|
Benefits and
expenses:
|
|
|
|
|
|
|
|
|
Life policyholder
benefits(1)
|
454,502
|
|
515,676
|
|
1,493,165
|
|
1,536,317
|
|
Health policyholder
benefits(2)
|
221,926
|
|
193,790
|
|
629,676
|
|
580,676
|
|
Other policyholder
benefits
|
11,756
|
|
9,578
|
|
32,830
|
|
27,488
|
|
Total policyholder
benefits
|
688,184
|
|
719,044
|
|
2,155,671
|
|
2,144,481
|
|
Amortization of
deferred acquisition costs
|
104,310
|
|
95,757
|
|
305,703
|
|
282,159
|
|
Commissions, premium
taxes, and non-deferred acquisition costs
|
149,693
|
|
138,677
|
|
447,605
|
|
414,933
|
|
Other operating
expense
|
104,874
|
|
85,870
|
|
297,196
|
|
256,074
|
|
Interest
expense
|
31,388
|
|
25,955
|
|
91,413
|
|
76,640
|
|
Total benefits and
expenses
|
1,078,449
|
|
1,065,303
|
|
3,297,588
|
|
3,174,287
|
|
|
|
|
|
|
|
|
|
Income before income
taxes
|
376,958
|
|
318,815
|
|
1,014,204
|
|
857,555
|
|
Income tax benefit
(expense)
|
(73,964)
|
|
(61,732)
|
|
(198,638)
|
|
(161,602)
|
|
Net
income
|
$
302,994
|
|
$
257,083
|
|
$
815,566
|
|
$
695,953
|
|
|
|
|
|
|
|
|
|
Basic net income per
common share
|
$
3.45
|
|
$
2.72
|
|
$
8.96
|
|
$
7.29
|
|
|
|
|
|
|
|
|
|
Diluted net income
per common share
|
$
3.44
|
|
$
2.68
|
|
$
8.93
|
|
$
7.20
|
|
(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 $70.6 million for the three months ended September 30,
2024, and a total remeasurement gain of $11.3 million for the same
period in 2023. Net of a total remeasurement gain of $87.8 million
for the nine months ended September 30, 2024, and a total
remeasurement gain of $16.5 million for the same period in
2023.
|
|
(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 $9.6 million for the three months ended September 30,
2024, and a total remeasurement gain of $7.8 million for the same
period in 2023. Net of a total remeasurement loss of $3.1 million
for the nine months ended September 30, 2024, and a total
remeasurement gain of $8.3 million for the same period in
2023.
|
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SOURCE Globe Life Inc.