Globe Life (GL) Q3 2024 earnings summary

Executive summary

• Net income for Q3 2024 was $303 million ($3.44/share), up from $257 million ($2.68/share) a year ago; net operating income rose 29% year-over-year to $308 million ($3.49/share).

• Net income for the nine months ended September 30, 2024, increased 17% year-over-year to $816 million, with diluted EPS up 24% to $8.93.

• Life and health insurance premium revenues grew 4% and 7% year-over-year, respectively.

• Book value per share (excluding AOCI) rose 13% year-over-year to $83.92.

• Share repurchases totaled 9.9 million shares YTD ($930 million), with 5.8 million shares ($580 million) in Q3.

Financial highlights

• Life insurance premium revenue reached $819 million (+4% YoY); life underwriting margin up 29% to $387 million, driven by a remeasurement gain from unlocking assumptions.

• Health insurance premium revenue was $354 million (+7% YoY); health underwriting margin declined 10% to $87 million due to a remeasurement loss.

• Net investment income for Q3 was $285 million (+7% YoY); excess investment income was $40 million (+$6 million YoY).

• Administrative expenses ratio increased to 7.5% of premium from 6.7% year-over-year, mainly due to higher IT, employee, and legal costs.

• Total premium revenue increased 5% to $1.17 billion in Q3.

Outlook and guidance

• 2024 net operating EPS guidance raised to $12.20–$12.40; 2025 guidance set at $13.20–$13.90 (10% growth at midpoint).

• 2024 life premium revenue expected to grow 4.0–4.5%; health premium revenue 6.5–7%.

• 2025 premium revenue growth expected at 4.5–5% for life and 7.5–8.5% for health.

• Underwriting margins as a percent of premium projected at 39–42% for life and 26–28% for health in 2025.

• Management expects continued premium and sales growth, with operating ROE (excluding AOCI) in the mid-teens.