Globe Life (GL) Q2 2024 earnings summary

Executive summary

• Net income for Q2 2024 was $258 million ($2.83/share), up 20% from $215 million ($2.24/share) a year ago; net operating income rose 14% to $271 million ($2.97/share).

• Net income for the six months ended June 30, 2024 increased 17% to $513 million, with diluted EPS up 22% to $5.51 year-over-year.

• Total premium grew 5% year-over-year to $2.31 billion, with life premium up 4% and health premium up 6%.

• Book value per share ex-AOCI rose 14% year-over-year to $82.38.

• Independent audit committee review found no evidence supporting short seller allegations; no restatements or adjustments required.

Financial highlights

• Life insurance premium revenue grew 4% year-over-year to $815 million; life underwriting margin up 8% to $320 million.

• Health insurance premium revenue increased 7% to $352 million; health underwriting margin reached $100 million.

• Net investment income rose 10% year-over-year to $568 million, driven by higher yields and asset growth.

• Administrative expenses were $82 million in Q2, up 9% year-over-year, representing 7% of premium.

• Shareholder returns in Q2 totaled $337 million, including $314 million in share repurchases and $23 million in dividends.

Outlook and guidance

• Full-year 2024 net operating EPS guidance raised to $11.80–$12.10, representing 12% growth at midpoint.

• Life premium revenue expected to grow 4.5%–5%; life underwriting margin projected to increase 9%–10%.

• Health premium revenue guidance: 6.5%–7% growth; health underwriting margin to grow 1%–2%.

• Net investment income expected to grow 7%–8% for the year.

• Share repurchases for 2024 anticipated at $750–$770 million; dividends $85–$90 million.