Globe Life Inc. Reports Second Quarter 2024 Results
July 24, 2024
McKinney, Texas
/PRNewswire/ -- Globe Life Inc. (NYSE: GL) reported today that for
the quarter ended June 30, 2024, net income was $2.83 per diluted common share, compared
with $2.24 per diluted common share for the year-ago quarter. Net operating income for
the quarter was $2.97 per diluted common share, compared with $2.61 per diluted common
share for the year-ago quarter.
HIGHLIGHTS:
- Net income as an ROE was 20.8% for the six months ended June 30, 2024. Net operating
income as an ROE excluding accumulated other comprehensive income (AOCI) was 14.5%
for the same period.
- Net income increased 20% and net operating income increased 8% over the year-ago
quarter.
- At the American Income Life Division, life net sales and premiums increased over the
year-ago quarter by 16% and 7%, respectively. Additionally, the average producing
agent count increased 13% over the year-ago quarter.
- At the Liberty National Division, the average producing agent count increased 16%
over the year-ago quarter and life net sales and premiums increased 11% and 6%,
respectively.
- At the Family Heritage Division, health net sales increased 7% and premiums
increased 8% over the year-ago quarter.
- Total underwriting margin increased 8% over the year-ago quarter.
- Net investment income grew 9% over the year-ago quarter.
- 3.8 million shares of Globe Life Inc. common stock were repurchased during the
quarter.
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—Q2
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 June 30, 2024 and 2023:
|
|
|
Operating
Summary
|
|
Per
Share
|
|
|
|
|
|
|
|
Three Months
Ended
June
30,
|
|
|
|
Three Months
Ended
June
30,
|
|
|
|
2024
|
|
2023
|
|
%
Chg.
|
|
2024
|
|
2023
|
|
%
Chg.
|
|
Insurance
underwriting income(2)
|
$
3.72
|
|
$
3.28
|
|
13
|
|
$
340,437
|
|
$
315,356
|
|
8
|
|
Excess investment
income(2)
|
0.47
|
|
0.33
|
|
42
|
|
42,791
|
|
31,385
|
|
36
|
|
Interest on
debt
|
(0.34)
|
|
(0.27)
|
|
26
|
|
(31,404)
|
|
(25,818)
|
|
22
|
|
Parent company
expense
|
(0.03)
|
|
(0.03)
|
|
|
|
(3,130)
|
|
(3,088)
|
|
|
|
Income tax
expense
|
(0.75)
|
|
(0.63)
|
|
19
|
|
(68,857)
|
|
(60,801)
|
|
13
|
|
Stock compensation
benefit (expense), net of tax
|
(0.09)
|
|
(0.06)
|
|
|
|
(8,620)
|
|
(5,558)
|
|
|
|
Net operating
income
|
2.97
|
|
2.61
|
|
14
|
|
271,217
|
|
251,476
|
|
8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciling
items, net of tax:
|
|
|
|
|
|
|
|
|
|
|
|
|
Realized gain
(loss)—investments
|
(0.11)
|
|
(0.38)
|
|
|
|
(9,945)
|
|
(36,216)
|
|
|
|
Non-operating
expenses
|
(0.01)
|
|
—
|
|
|
|
(993)
|
|
—
|
|
|
|
Legal
proceedings
|
(0.02)
|
|
—
|
|
|
|
(1,924)
|
|
—
|
|
|
|
Net income(3)
|
$
2.83
|
|
$
2.24
|
|
|
|
$
258,355
|
|
$
215,260
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
diluted shares outstanding
|
91,441
|
|
96,251
|
|
|
|
|
|
|
|
|
|
|
(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—Q2
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.
|
|
|
Six Months
Ended
June
30,
|
|
2024
|
|
2023
|
|
Net income
|
$
512,572
|
|
$
438,870
|
|
Net operating
income
|
535,316
|
|
499,518
|
|
Net income as an
ROE(1)
|
20.8 %
|
|
22.4 %
|
|
Net operating income
as an ROE (excluding AOCI)(1)
|
14.5 %
|
|
14.6 %
|
|
|
|
|
|
June
30,
|
|
2024
|
|
2023
|
|
Shareholders'
equity
|
$
5,227,754
|
|
$
3,980,306
|
|
Impact of adjustment
to exclude AOCI
|
2,189,620
|
|
2,943,897
|
|
Shareholders'
equity, excluding AOCI
|
$
7,417,374
|
|
$
6,924,203
|
|
|
|
|
|
Book value per
share
|
$
58.06
|
|
$
41.44
|
|
Impact of adjustment
to exclude AOCI
|
24.32
|
|
30.65
|
|
Book value per
share, excluding AOCI
|
$
82.38
|
|
$
72.09
|
|
|
(1) Calculated using
average shareholders' equity for the measurement
period.
|
|
INSURANCE OPERATIONS:
Life insurance accounted for 76% of the Company's insurance underwriting margin for the
quarter and 70% of total premium revenue.
Health insurance accounted for 24% 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
17%.
The following table summarizes Globe Life's premium revenue by product type for the three
months ended June 30, 2024 and 2023:
|
GLOBE LIFE
INC.
Earnings Release—Q2
2024
(Dollar amounts in thousands, except
share and per share data)
(Unaudited)
|
|
|
Insurance Premium
Revenue
|
|
|
|
|
|
Quarter
Ended
|
|
|
|
|
|
June 30,
2024
|
|
June 30,
2023
|
|
%
Chg.
|
|
Life
insurance
|
|
|
|
|
$
815,482
|
|
$
781,733
|
|
4
|
|
Health
insurance
|
|
|
|
|
351,643
|
|
329,187
|
|
7
|
|
Annuity
|
|
|
|
|
—
|
|
—
|
|
|
|
Total
|
|
|
|
|
$
1,167,125
|
|
$
1,110,920
|
|
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
June 30, 2024 and
2023:
|
|
|
Insurance
Underwriting Income
|
|
Quarter
Ended
|
|
June 30,
2024
|
|
% of
Premium
|
|
June 30,
2023
|
|
% of
Premium
|
|
%
Chg.
|
|
Insurance
underwriting margins:
|
|
|
|
|
|
|
|
|
|
|
Life
|
$
320,323
|
|
39
|
|
$
296,130
|
|
38
|
|
8
|
|
Health
|
100,488
|
|
29
|
|
92,419
|
|
28
|
|
9
|
|
Annuity
|
1,748
|
|
|
|
2,181
|
|
|
|
|
|
422,559
|
|
|
|
390,730
|
|
|
|
8
|
|
Other income
|
74
|
|
|
|
85
|
|
|
|
|
|
Administrative
expenses
|
(82,196)
|
|
|
|
(75,459)
|
|
|
|
9
|
|
Insurance
underwriting income
|
$
340,437
|
|
|
|
$
315,356
|
|
|
|
8
|
|
Per
share
|
$
3.72
|
|
|
|
$
3.28
|
|
|
|
13
|
|
The ratio of administrative expenses to premium was 7.0%, compared with 6.8% for the
year-ago quarter.
|
GLOBE LIFE
INC.
Earnings Release—Q2 2024
(Dollar
amounts in thousands, except share and per share
data)
(Unaudited)
|
|
|
LIFE INSURANCE
RESULTS BY DISTRIBUTION
CHANNEL
|
|
|
Our distribution
channels consist of the following exclusive agencies:
American Income Life Division (American
Income),
Liberty National Division (Liberty National) and Family
Heritage Division (Family Heritage); an independent
agency, United American Division (United American);
and our Direct to Consumer Division (Direct to
Consumer).
|
|
|
Total premium,
underwriting margins, first-year collected premium and
net sales by all distribution channels are shown
at https://investors.globelifeinsurance.com at
"Financial Reports and Other Financial
Information."
|
|
|
Life Underwriting
Margin
|
|
Quarter
Ended
|
|
|
|
June
30,
|
|
|
|
2024
|
|
2023
|
|
|
|
Amount
|
|
% of
Premium
|
|
Amount
|
|
% of
Premium
|
|
%
Chg.
|
|
American Income
|
$
192,662
|
|
45
|
|
$
179,537
|
|
45
|
|
7
|
|
Direct to Consumer
|
63,848
|
|
26
|
|
56,433
|
|
23
|
|
13
|
|
Liberty National
|
31,072
|
|
34
|
|
28,386
|
|
33
|
|
9
|
|
Other
|
32,741
|
|
64
|
|
31,774
|
|
61
|
|
3
|
|
Total
|
$
320,323
|
|
39
|
|
$
296,130
|
|
38
|
|
8
|
|
|
Life
Premium
|
|
|
|
|
|
Quarter
Ended
|
|
|
|
|
|
|
|
June
30,
|
|
|
|
|
|
|
|
2024
|
|
2023
|
|
%
Chg.
|
|
American Income
|
|
|
|
|
$
423,534
|
|
$
394,620
|
|
7
|
|
Direct to Consumer
|
|
|
|
|
248,839
|
|
248,607
|
|
—
|
|
Liberty National
|
|
|
|
|
92,197
|
|
86,634
|
|
6
|
|
Other
|
|
|
|
|
50,912
|
|
51,872
|
|
(2)
|
|
Total
|
|
|
|
|
$
815,482
|
|
$
781,733
|
|
4
|
|
|
Life Net
Sales(1)
|
|
|
|
|
|
Quarter
Ended
|
|
|
|
|
|
|
|
June
30,
|
|
|
|
|
|
|
|
2024
|
|
2023
|
|
%
Chg.
|
|
American Income
|
|
|
|
|
$
94,668
|
|
$
81,940
|
|
16
|
|
Direct to Consumer
|
|
|
|
|
30,614
|
|
31,629
|
|
(3)
|
|
Liberty National
|
|
|
|
|
25,889
|
|
23,269
|
|
11
|
|
Other
|
|
|
|
|
2,332
|
|
2,450
|
|
(5)
|
|
Total
|
|
|
|
|
$
153,503
|
|
$
139,288
|
|
10
|
|
|
|
(1)
|
Net sales is
calculated as annualized premium issued, net of
cancellations in the first thirty days after issue,
except in the case of Direct to Consumer, where net
sales is annualized premium issued at the time the first
full premium is paid after any introductory offer period
(typically 1 month) has expired. Management considers
net sales to be a better indicator of the rate of
premium growth than annualized premium issued since
annualized premium issued excludes cancellations, and
cancellations do not contribute to premium
income.
|
|
GLOBE LIFE
INC.
Earnings Release—Q2 2024
(Dollar
amounts in thousands, except share and per share
data)
(Unaudited)
|
|
|
HEALTH INSURANCE
RESULTS BY DISTRIBUTION CHANNEL
|
|
|
Health
Underwriting Margin
|
|
Quarter
Ended
|
|
|
|
June
30,
|
|
|
|
2024
|
|
2023
|
|
|
|
Amount
|
|
% of
Premium
|
|
Amount
|
|
% of
Premium
|
|
% Chg.
|
|
United American
|
$
16,571
|
|
11
|
|
$
14,753
|
|
11
|
|
12
|
|
Family Heritage
|
36,611
|
|
35
|
|
32,704
|
|
33
|
|
12
|
|
Liberty National
|
26,400
|
|
55
|
|
26,208
|
|
56
|
|
1
|
|
American Income
|
19,092
|
|
62
|
|
18,169
|
|
62
|
|
5
|
|
Direct to
Consumer
|
1,814
|
|
10
|
|
585
|
|
3
|
|
210
|
|
Total
|
$
100,488
|
|
29
|
|
$
92,419
|
|
28
|
|
9
|
|
|
Health
Premium
|
|
|
|
|
|
Quarter
Ended
|
|
|
|
|
|
|
|
June
30,
|
|
|
|
|
|
|
|
2024
|
|
2023
|
|
%
Chg.
|
|
United American
|
|
|
|
|
$
149,230
|
|
$
137,453
|
|
9
|
|
Family Heritage
|
|
|
|
|
105,855
|
|
98,129
|
|
8
|
|
Liberty National
|
|
|
|
|
47,705
|
|
46,903
|
|
2
|
|
American Income
|
|
|
|
|
30,721
|
|
29,527
|
|
4
|
|
Direct to Consumer
|
|
|
|
|
18,132
|
|
17,175
|
|
6
|
|
Total
|
|
|
|
|
$
351,643
|
|
$
329,187
|
|
7
|
|
|
Health Net
Sales(1)
|
|
|
|
|
|
Quarter
Ended
|
|
|
|
|
|
|
|
June
30,
|
|
|
|
|
|
|
|
2024
|
|
2023
|
|
%
Chg.
|
|
United American
|
|
|
|
|
$
18,228
|
|
$
12,933
|
|
41
|
|
Family Heritage
|
|
|
|
|
24,570
|
|
23,010
|
|
7
|
|
Liberty National
|
|
|
|
|
8,356
|
|
8,058
|
|
4
|
|
American Income
|
|
|
|
|
5,792
|
|
4,712
|
|
23
|
|
Direct to Consumer
|
|
|
|
|
839
|
|
707
|
|
19
|
|
Total
|
|
|
|
|
$
57,785
|
|
$
49,420
|
|
17
|
|
|
|
(1)
|
Net sales is
calculated as annualized premium issued, net of
cancellations in the first thirty days after issue,
except in the case of Direct to Consumer, where net
sales is annualized premium issued at the time the first
full premium is paid after any introductory offer period
(typically 1 month) has expired. Management considers
net sales to be a better indicator of the rate of
premium growth than annualized premium issued since
annualized premium issued excludes cancellations, and
cancellations do not contribute to premium
income.
|
|
GLOBE LIFE
INC.
Earnings Release—Q2
2024
(Dollar amounts in thousands, except
share and per share data)
(Unaudited)
|
|
|
PRODUCING
EXCLUSIVE AGENT COUNT RESULTS BY DISTRIBUTION
CHANNEL
|
|
|
Quarterly Average
Producing Agent
Count(1)
|
|
Quarter
Ended
|
|
|
|
Quarter
Ended
|
|
June
30,
|
|
|
|
March
31,
|
|
2024
|
|
2023
|
|
%
Chg.
|
|
2024
|
|
American
Income
|
11,869
|
|
10,488
|
|
13
|
|
11,139
|
|
Liberty National
|
3,700
|
|
3,180
|
|
16
|
|
3,419
|
|
Family Heritage
|
1,361
|
|
1,345
|
|
1
|
|
1,295
|
|
|
(1) The quarterly
average producing agent count is based on the actual
count at the beginning and end of each week during the
period.
|
|
INVESTMENTS
|
|
|
Management uses
excess investment income as the measure to evaluate the
performance of the investment
segment. It is defined
as net investment income less the required interest
attributable to policy liabilities. We also view
excess investment income per diluted common share as
an important and useful measure to evaluate performance
of the investment segment, since it takes into
consideration our stock repurchase
program.
|
|
|
The following table
summarizes Globe Life's investment income, excess
investment income, and excess investment
income per
diluted common share.
|
|
|
Excess Investment
Income
|
|
Quarter
Ended
|
|
June
30,
|
|
2024
|
|
2023
|
|
%
Chg.
|
|
Net investment
income
|
$
285,636
|
|
$
261,244
|
|
9
|
|
Interest on policy
liabilities(1)
|
(242,845)
|
|
(229,859)
|
|
6
|
|
Excess
investment income
|
$
42,791
|
|
$
31,385
|
|
36
|
|
Per share
|
$
0.47
|
|
$
0.33
|
|
42
|
|
|
(1) Interest
on policy liabilities, at original discount rates, is a
component of total policyholder benefits, a GAAP
measure.
|
|
Net investment income increased 9% and average invested assets increased 6%. Required
interest on policy liabilities increased 6% and average policy liabilities increased 5%.
|
GLOBE LIFE
INC.
Earnings Release—Q2
2024
(Dollar amounts in thousands, except
share and per share data)
(Unaudited)
|
|
|
The composition of
the investment portfolio at book value at June 30, 2024
is as follows:
|
|
|
Investment
Portfolio
|
|
As of
|
|
June 30,
2024
|
|
Amount
|
|
% of
Total
|
|
Fixed maturities at
fair value(1)
|
$
17,613,008
|
|
89
|
|
Mortgage
Loans
|
343,492
|
|
2
|
|
Policy loans
|
676,077
|
|
3
|
|
Other long-term
investments(2)
|
974,515
|
|
5
|
|
Short-term
investments
|
100,560
|
|
1
|
|
Total
|
$
19,707,652
|
|
|
|
|
(1) As of June 30,
2024, fixed maturities at amortized cost were $19.2
billion, net of $7.1 million of allowance for credit
losses.
|
|
(2) Includes $916
million of investments accounted for under the fair
value option which have a cost of $898 million as
of June 30, 2024.
|
|
|
Fixed maturities at
amortized cost, net of allowance for credit losses, by
asset class as of June 30, 2024 are as
follows:
|
|
|
Fixed Maturity
Portfolio by Sector
|
|
As of
|
|
June 30,
2024
|
|
Investment
Grade
|
|
Below
Investment
Grade
|
|
Total
Amortized
Cost, net
|
|
Corporate
bonds
|
$
14,884,237
|
|
$
521,168
|
|
$
15,405,405
|
|
Municipals
|
3,255,829
|
|
—
|
|
3,255,829
|
|
Government,
agencies, and GSEs(1)
|
443,826
|
|
—
|
|
443,826
|
|
Collateralized debt
obligations
|
—
|
|
36,945
|
|
36,945
|
|
Other asset-backed
securities
|
74,147
|
|
5,989
|
|
80,136
|
|
Total
|
$
18,658,039
|
|
$
564,102
|
|
$
19,222,141
|
|
|
(1)
Government-Sponsored Enterprises
|
|
Below are fixed maturities available for sale by amortized cost, allowance for credit
losses, and fair value at June 30, 2024 and the corresponding amounts of net unrealized
gains and losses recognized in accumulated other comprehensive income (loss).
|
As of
|
Amortized
Cost
|
|
Allowance for
Credit Losses
|
|
Net Unrealized
Gains
(Losses)
|
|
Fair
Value
|
|
June 30, 2024
|
$
19,229,273
|
|
$
(7,132)
|
|
$
(1,609,133)
|
|
$
17,613,008
|
|
|
|
|
|
|
|
|
At amortized cost, net of allowance for credit losses, 97% of fixed maturities (97% at
fair value) were rated "investment grade." The fixed maturity portfolio earned an annual
taxable equivalent effective yield of 5.26% during the second quarter of 2024, compared
with 5.18% in the year-ago quarter.
Globe Life is not a party to any credit default swaps and does not participate in
securities lending.
|
GLOBE LIFE
INC.
Earnings Release—Q2
2024
(Dollar amounts in thousands, except
share and per share data)
(Unaudited)
|
|
|
Comparable
information for acquisitions of fixed maturity
investments is as follows:
|
|
|
Fixed Maturity
Acquisitions
|
|
Quarter
Ended
|
|
June
30,
|
|
2024
|
|
2023
|
|
Amount
|
$
240,669
|
|
$
359,487
|
|
Average annual
effective yield
|
6.2 %
|
|
5.8 %
|
|
Average
rating
|
A-
|
|
AA-
|
|
Average life (in
years) to:
|
|
|
|
|
Next call
|
32.2
|
|
15.5
|
|
Maturity
|
34.8
|
|
24.4
|
|
SHARE REPURCHASE:
During the quarter, the Company repurchased 3.8 million shares of Globe Life Inc. common
stock at a total cost of $314 million and an average share price of $81.87.
LIQUIDITY/CAPITAL:
Globe Life's operations consist primarily of writing basic protection life and
supplemental health insurance policies which generate strong and stable cash flows.
These cash flows are not impacted by volatile equity markets. Liquidity at the Parent
Company is sufficient to meet additional capital needs of the insurance companies.
EARNINGS GUIDANCE FOR THE YEAR ENDING DECEMBER 31, 2024:
Globe Life projects net operating income between $11.80 to $12.10 per diluted common
share for the year ending December 31, 2024.
NON-GAAP MEASURES:
In this news release, Globe Life includes non-GAAP measures to enhance investors'
understanding of management's view of the business. The non-GAAP measures are not a
substitute for GAAP, but rather a supplement to increase transparency by providing
broader perspective. Globe Life's definitions of non-GAAP measures may differ from other
companies' definitions. More detailed financial information, including various GAAP and
non-GAAP measurements, is located at
https://investors.globelifeinsurance.com on the Investors page under
"Financial Reports and Other Financial Information."
CAUTION REGARDING FORWARD-LOOKING STATEMENTS:
This press release may contain forward-looking statements within the meaning of the
federal securities laws. These prospective statements reflect management's current
expectations, but are not guarantees of future performance. Whether or not actual
results differ materially from forward-looking statements may depend on numerous
foreseeable and unforeseeable events or developments, which may be national in scope,
related to the insurance industry generally, or applicable to the Company specifically.
Such events or developments could include, but are not necessarily limited to:
1) Economic and other conditions, including the continued impact of inflation,
geopolitical events, and the recent pandemic on the U.S. economy, leading to unexpected
changes in lapse rates and/or sales of our policies, as well as levels of mortality,
morbidity, and utilization of health care services that differ from Globe Life's
assumptions;
2) Regulatory developments, including changes in accounting standards or governmental
regulations (particularly those impacting taxes and changes to the Federal Medicare
program that would affect Medicare Supplement);
3) Market trends in the senior-aged health care industry that provide alternatives to
traditional Medicare (such as Health Maintenance Organizations and other managed care or
private plans) and that could affect the sales of traditional Medicare Supplement
insurance;
4) Interest rate changes that affect product sales, financing costs, and/or investment
portfolio yield;
5) General economic, industry sector or individual debt issuers' financial conditions
(including developments and volatility arising from geopolitical events, particularly in
certain industries that may compromise part of our investment portfolio) that may affect
the current market value of securities we own, or that may impair an issuer's ability to
make principal and/or interest payments due on those securities;
6) Changes in the competitiveness of the Company's products and pricing;
7) Litigation results;
8) Levels of administrative and operational efficiencies that differ from our assumptions
(including any reduction in efficiencies resulting from increased costs arising from the
impact of higher than anticipated inflation);
9) The ability to obtain timely and appropriate premium rate increases for health
insurance policies from our regulators;
10) The customer response to new products and marketing initiatives;
11) Reported amounts in the consolidated financial statements which are based on
management estimates and judgments which may differ from the actual amounts ultimately
realized;
12) Compromise by a malicious actor or other event that causes a loss of secure data
from, or inaccessibility to, our computer and other information technology systems;
13) The impact of any reputational damage on the Company's ability to attract and retain
agents;
14) The severity, magnitude, and impact of natural or man-made catastrophic events,
including but not limited to pandemics, tornadoes, hurricanes, earthquakes, war and
terrorism, on our operations and personnel, commercial activity and demand for our
products; and
15) Globe Life's ability to access the commercial paper and debt markets, particularly if
such markets become unpredictable or unstable for a certain period.
Readers are also directed to consider other risks and uncertainties described in other
documents on file with the Securities and Exchange Commission. Globe Life specifically
disclaims any obligation to update or revise any forward-looking statement because of
new information, future developments or otherwise.
EARNINGS RELEASE CONFERENCE CALL WEBCAST:
Globe Life will provide a live audio webcast of its second quarter 2024 earnings release
conference call with financial analysts at 11:00 am (Eastern) tomorrow, July 25,
2024. Access to the live webcast and replay will be available at
https://investors.globelifeinsurance.com on the Calls and Meetings page,
at the Conference Calls on the Web icon. Immediately following this press release,
supplemental financial reports will be available before the conference call on the
Investors page menu of the Globe Life website at "Financial Reports."
|
APPENDIX
|
|
|
GLOBE LIFE
INC.
GAAP CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS
|
|
|
Three Months
Ended
June
30,
|
|
Six Months
Ended
June
30,
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
Revenue:
|
|
|
|
|
|
|
|
|
Life premium
|
$
815,482
|
|
$
781,733
|
|
$
1,619,747
|
|
$
1,554,330
|
|
Health
premium
|
351,643
|
|
329,187
|
|
692,662
|
|
651,680
|
|
Other
premium
|
—
|
|
—
|
|
—
|
|
—
|
|
Total
premium
|
1,167,125
|
|
1,110,920
|
|
2,312,409
|
|
2,206,010
|
|
Net investment
income
|
285,636
|
|
261,244
|
|
568,214
|
|
518,349
|
|
Realized gains
(losses)
|
(12,589)
|
|
(45,843)
|
|
(24,388)
|
|
(76,770)
|
|
Other income
|
74
|
|
85
|
|
150
|
|
135
|
|
Total
revenue
|
1,440,246
|
|
1,326,406
|
|
2,856,385
|
|
2,647,724
|
|
|
|
|
|
|
|
|
|
Benefits and
expenses:
|
|
|
|
|
|
|
|
|
Life policyholder
benefits(1)
|
518,792
|
|
512,664
|
|
1,038,663
|
|
1,020,641
|
|
Health policyholder
benefits(2)
|
205,423
|
|
195,924
|
|
407,750
|
|
386,886
|
|
Other policyholder
benefits
|
11,479
|
|
8,922
|
|
21,074
|
|
17,910
|
|
Total policyholder
benefits
|
735,694
|
|
717,510
|
|
1,467,487
|
|
1,425,437
|
|
Amortization of
deferred acquisition costs
|
101,915
|
|
94,080
|
|
201,393
|
|
186,402
|
|
Commissions,
premium taxes, and non-deferred acquisition costs
|
149,802
|
|
138,459
|
|
297,912
|
|
276,256
|
|
Other operating
expense
|
99,108
|
|
86,033
|
|
192,322
|
|
170,204
|
|
Interest
expense
|
31,404
|
|
25,818
|
|
60,025
|
|
50,685
|
|
Total benefits and
expenses
|
1,117,923
|
|
1,061,900
|
|
2,219,139
|
|
2,108,984
|
|
|
|
|
|
|
|
|
|
Income before income
taxes
|
322,323
|
|
264,506
|
|
637,246
|
|
538,740
|
|
Income tax benefit
(expense)
|
(63,968)
|
|
(49,246)
|
|
(124,674)
|
|
(99,870)
|
|
Net
income
|
$
258,355
|
|
$
215,260
|
|
$
512,572
|
|
$
438,870
|
|
|
|
|
|
|
|
|
|
Basic net income
per common share
|
$
2.83
|
|
$
2.26
|
|
$
5.53
|
|
$
4.58
|
|
|
|
|
|
|
|
|
|
Diluted net
income per common share
|
$
2.83
|
|
$
2.24
|
|
$
5.51
|
|
$
4.52
|
|
|
|
(1)
|
Net of a
remeasurement gain of $12.4 million for the three months
ended June 30, 2024, and a remeasurement gain of $2.4
million for the same period in 2023. Net of a
remeasurement gain of $17.3 million for the six months
ended June 30, 2024, and a remeasurement gain of $5.1
million for the same period in 2023.
|
|
(2)
|
Net of a
remeasurement gain of $3.2 million for the three months
ended June 30, 2024, and a remeasurement gain of $2.6
million for the same period in 2023. Net of a
remeasurement gain of $6.5 million for the six months
ended June 30, 2024, and a remeasurement gain of $532
thousand for the same period in 2023.
|