GLOBE LIFE INC. REPORTS THIRD QUARTER 2024 RESULTS
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
