Loading...
•
Dec 31, 2024
Globe Life Q4 2024 Earnings Report
Globe Life reported its financial results for the fourth quarter ended December 31, 2024, with increases in net income and net operating income per diluted common share compared to the prior year.
Key Takeaways
Globe Life Inc. reported a net income of $255,196,000 and net operating income of $265,809,000 for the fourth quarter of 2024. Diluted EPS was $3.01, and non-GAAP diluted EPS was $3.14. The company also reported strong performance in its life and health insurance segments, with increased net sales and premiums.
Net income per diluted common share increased to $3.01 from $2.88 in the year-ago quarter.
Net operating income per diluted common share rose to $3.14 from $2.80 in the year-ago quarter.
Life insurance net sales increased 11% for the quarter, and net health sales increased 6%.
The company repurchased 337,821 shares of common stock at a total cost of $36 million during the 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 per diluted common share for the year ending December 31, 2025, to be between $13.45 and $14.05.
Positive Outlook
- Projected net operating income per diluted common share indicates continued profitability.
- Focus on basic protection life and supplemental health insurance policies generates strong and stable cash flows.
- Sufficient liquidity at the Parent Company to meet additional capital needs of insurance companies.
- Management's use of non-GAAP measures aims to enhance investor understanding and transparency.
- The company's business model is less impacted by volatile equity markets.
Challenges Ahead
- Economic and other conditions, including inflation and geopolitical events, could impact lapse rates, sales, mortality, morbidity, and healthcare utilization.
- Regulatory developments, including changes in accounting standards or governmental regulations, could affect financial results.
- Market trends in the senior-aged health care industry, such as the rise of Health Maintenance Organizations, could affect sales of traditional Medicare Supplement insurance.
- Interest rate changes could impact product sales, financing costs, and investment yields.
- General economic, industry sector, or individual debt issuers' financial conditions could affect the market value of securities and the ability of issuers to make payments.