Globe Life (GL) investor relations material

Executive summary

• Q3 GAAP net income was $361.1M, or $4.62/share, down 2% YoY; net operating income was $379M, or $4.84/share, up 1%.

• Premiums grew 7%; favorable claims supported a quarterly assumption remeasurement gain, while CMS processing delays and Evry high-severity claims pressured health results.

Financial highlights

• Total Q3 revenue was $1.596B, including $1.311B of premiums, up 7%; net investment income was $295.9M, up 3%.

• Life premiums rose 2% to $864.6M; life underwriting margin fell 5% to $458.2M, but excluding LDTI assumption-update effects it would have risen ~3%.

• Health premiums increased 16% to $446.9M and health underwriting margin rose 7% to $115.6M; administrative expenses were $95M, or 7.3% of premiums.

• Insurance underwriting income was $481.8M, down 4% YoY, and underwriting margin was $573.8M, down 3%.

• Excess investment income was $37.9M, up 3%, or $0.49/share, up 9%; average invested assets rose 3%.

Outlook and guidance

• FY2026 net operating EPS guidance is $15.35-$15.65; normalized EPS growth, excluding assumption updates, is ~8%.

• FY2027 net operating EPS guidance is $16.10-$17.10, representing 7.1% growth at midpoint; projected growth includes 5%-6% from repurchases and 1%-2% from net operating income growth.

• FY2026 premium growth guidance is 6%-8% overall, 2%-4% for life and 13%-15% for health; expected underwriting margin as a share of premiums is 42%-45% for life and 20%-24% for health.

• FY2026 health underwriting margin dollars are expected to grow 7%-9%, with administrative expenses near 7.3% of premiums; FY2027 American Income net life sales are expected to grow mid-to-high single digits.

• FY2026 excess investment income growth is projected at 10%-11%; FY2027 parent excess cash flow is $850M-$950M, and net investment income growth of 2.5%-3.5% versus required-interest growth of 3.5%-4% implies excess investment income roughly flat to slightly lower.