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Dec 31, 2022
Globe Life Q4 2022 Earnings Report
Globe Life's Q4 2022 earnings were reported, with net income at $2.14 per diluted common share and net operating income at $2.24 per diluted common share.
Key Takeaways
Globe Life Inc. reported a net income of $2.14 per diluted common share for Q4 2022, compared to $1.76 for the same quarter last year. Net operating income was $2.24 per diluted common share, up from $1.70 in the prior year. The company repurchased 489,708 shares during the quarter.
Net income was $2.14 per diluted common share, compared to $1.76 per diluted common share for the year-ago quarter.
Net operating income was $2.24 per diluted common share, compared to $1.70 per diluted common share for the year-ago quarter.
Life premiums increased 5% at the American Income Life Division and 4% at the Liberty National Division over the year-ago quarter.
Health premiums increased 7% and average producing agent count increased 12% at the Family Heritage Division over the year-ago quarter.
Globe Life
Globe Life
Globe Life Revenue by Segment
Revenue by Segment
Life Revenue
CapyFin.comHealth Revenue
CapyFin.com Forward Guidance
Globe Life projects net operating income between $10.20 to $10.50 per diluted common share for the year ending December 31, 2023. We estimate the impact of implementing the new accounting guidance results in an increase in net operating income in the range of $105 million to $115 million, primarily as a result of lower amortization of deferred acquisition costs.
Positive Outlook
- New accounting guidance related to long-duration insurance contracts is effective January 1, 2023.
- Globe Life projects net operating income between $10.20 to $10.50 per diluted common share for the year ending December 31, 2023.
- The new accounting guidance results in an increase in net operating income in the range of $105 million to $115 million.
- Increase primarily as a result of lower amortization of deferred acquisition costs.
- Liquidity at the Parent Company is sufficient to meet additional capital needs of the insurance companies.
Challenges Ahead
- Economic conditions leading to changes in lapse rates and/or sales of policies
- Regulatory developments, including changes in accounting standards or governmental regulations
- Market trends in the senior-aged health care industry that provide alternatives to traditional Medicare
- Interest rate changes that affect product sales and/or investment portfolio yield
- General economic, industry sector or individual debt issuers’ financial conditions that may affect the current market value of securities we own
Revenue & Expenses
Visualization of income flow from segment revenue to net income