Globe Life Inc. (NYSE: GL) reported today that for the quarter ended June 30, 2025, net income was $3.05 per diluted common share, compared with $2.83 per diluted common share for the year-ago quarter. Net operating income was $3.27 per diluted common share, compared with $2.97 per diluted common share for the year-ago quarter.
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HIGHLIGHTS:
— Net income as an ROE was 18.8% for the six months ended June 30, 2025. Net operating income as an ROE excluding accumulated other comprehensive income (AOCI) was 14.4% for the same period.
— Net income per share increased 8% and net operating income per share increased 10% over the year-ago quarter.
— At the American Income Life and Liberty National Divisions, life premiums increased 5% over the year-ago quarter.
— At the Family Heritage Division, health net sales increased 20% and health premiums increased 9% over the year-ago quarter. Additionally, the average producing agent count increased 10% over the year-ago quarter.
— At the Direct to Consumer Division, life net sales increased 2% over the year-ago quarter and 24% over the first quarter of 2025. Life underwriting margin grew 8% over the year-ago quarter to $69 million.
— Life underwriting margin increased 6% over the year-ago quarter.
— 1.9 million shares of Globe Life Inc. common stock at a total cost of $226 million 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 2025(Dollar amounts in thousands, except share and per share data)(Unaudited)RESULTS OF OPERATIONSNet 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, 2025 and 2024:Operating Summary Per Share Three Months Ended Three Months Ended June 30, June 30, 2025 2024 % 2025 2024 % Chg. Chg.Insurance underwriting income(2) $ 4.28 $ 3.72 15 $ 354,176 $ 340,437 4Excess investment income(2) 0.42 0.47 (11) 34,828 42,791 (19)Interest on debt (0.42) (0.34) 24 (34,885) (31,404) 11Parent company expense (0.04) (0.03) (3,555) (3,130)Income tax expense (0.82) (0.75) 9 (68,062) (68,857) (1)Stock compensation benefit (expense), net of tax (0.14) (0.09) (11,407) (8,620)Net operating income 3.27 2.97 10 271,095 271,217 -Reconciling items, net of tax:Realized gain (loss) (0.18) (0.11) (14,674) (9,945)Non-operating expenses – (0.01) – (993)Legal proceedings (0.04) (0.02) (3,672) (1,924)Net income(3) $ 3.05 $ 2.83 $ 252,749 $ 258,355Weighted average diluted shares outstanding 82,793 91,441
(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 2025(Dollar amounts in thousands, except share and per share data)(Unaudited)MANAGEMENT VS. GAAP MEASURESShareholders' 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, 2025 2024Net income $ 507,312 $ 512,572Net operating income 530,432 535,316Net income as an ROE(1) 18.8% 20.8%Net operating income as an ROE(excluding AOCI)(1) 14.4% 14.5% June 30, 2025 2024Shareholders' equity $ 5,419,030 $ 5,227,754Impact of adjustment to exclude AOCI 1,983,868 2,189,620Shareholders' equity, excluding AOCI $ 7,402,898 $ 7,417,374Book value per share $ 66.07 $ 58.06Impact of adjustment to exclude AOCI 24.19 24.32Book value per share, excluding AOCI $ 90.26 $ 82.38
(1) Calculated using average shareholders' equity for the measurement period.
GLOBE LIFE INC.Earnings Release-Q2 2025(Dollar amounts in thousands, except share and per share data)(Unaudited)INSURANCE OPERATIONS:Life insurance accounted for 78% of the Company's insurance underwriting margin for the quarter and 69% of total premium revenue.Health insurance accounted for 22% of the Company's insurance underwriting margin for the quarter and 31% of total premium revenue.Net sales of life insurance increased 1% for the quarter, and net health sales increased 19%.The following table summarizes Globe Life's premium revenue by product type for the three months ended June 30, 2025 and 2024:Insurance Premium Revenue Quarter Ended June 30, 2025 June 30, 2024 % Chg.Life insurance $ 839,544 $ 815,482 3Health insurance 378,099 351,643 8Total $ 1,217,643 $ 1,167,125 4
INSURANCE UNDERWRITING INCOME
Insurance underwriting margin is management's measure of profitability of the Company's life and health 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 and health segments, plus annuity and 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, 2025 and 2024:
Insurance Underwriting Income Quarter Ended June 30, 2025 % of June 30, 2024 % of % Premium Premium Chg.Insurance underwriting margins:Life $ 340,074 41 $ 320,323 39 6Health 98,057 26 100,488 29 (2) 438,131 420,811 4Annuity and other income 2,092 1,822Administrative expenses (86,047) (82,196)Insurance underwriting income $ 354,176 $ 340,437 4Per share $ 4.28 $ 3.72 15
The ratio of administrative expenses to premium was 7.1%, compared with 7.0% for the year-ago quarter.
GLOBE LIFE INC.Earnings Release-Q2 2025(Dollar amounts in thousands, except share and per share data)(Unaudited)LIFE INSURANCE RESULTS BY DISTRIBUTION CHANNELOur distribution channels consist of the following exclusive divisions: American Income Life Division (American Income), Liberty National Division (Liberty National), Family Heritage Division (Family Heritage), Direct to Consumer Division (Direct to Consumer); and an independent agency, United American Division (United American).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, 2025 2024 Amount % of Amount % of % Premium Premium Chg.American Income $ 204,533 46 $ 192,662 45 6Direct to Consumer 68,959 28 63,848 26 8Liberty National 33,446 34 31,072 34 8Other 33,136 66 32,741 64 1Total $ 340,074 41 $ 320,323 39 6
Life Premium Quarter Ended June 30, 2025 2024 % Chg.American Income $ 445,511 $ 423,534 5Direct to Consumer 246,223 248,839 (1)Liberty National 97,263 92,197 5Other 50,547 50,912 (1)Total $ 839,544 $ 815,482 3
Life Net Sales(1) Quarter Ended June 30, 2025 2024 % Chg.American Income $ 96,227 $ 94,668 2Direct to Consumer 31,096 30,614 2Liberty National 24,615 25,889 (5)Other 2,947 2,332 26Total $ 154,885 $ 153,503 1
(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 2025(Dollar amounts in thousands, except share and per share data)(Unaudited)HEALTH INSURANCE RESULTS BY DISTRIBUTION CHANNELHealth Underwriting Margin Quarter Ended June 30, 2025 2024 Amount % of Amount % of % Premium Premium Chg.United American $ 12,402 8 $ 16,571 11 (25)Family Heritage 40,927 35 36,611 35 12Liberty National 24,372 51 26,400 55 (8)American Income 19,325 62 19,092 62 1Direct to Consumer 1,031 5 1,814 10 (43)Total $ 98,057 26 $ 100,488 29 (2)
Health Premium Quarter Ended June 30, 2025 2024 % Chg.United American $ 163,978 $ 149,230 10Family Heritage 115,856 105,855 9Liberty National 47,631 47,705 -American Income 31,422 30,721 2Direct to Consumer 19,212 18,132 6Total $ 378,099 $ 351,643 8
Health Net Sales(1) Quarter Ended June 30, 2025 2024 % Chg.United American $ 25,454 $ 18,228 40Family Heritage 29,561 24,570 20Liberty National 8,182 8,356 (2)American Income 4,749 5,792 (18)Direct to Consumer 786 839 (6)Total $ 68,732 $ 57,785 19
(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 2025(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, 2025 2024 % 2025 Chg.American Income 12,241 11,869 3 11,510Liberty National 3,882 3,700 5 3,688Family Heritage 1,498 1,361 10 1,417
(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, 2025 2024 % Chg.Net investment income $ 282,169 $ 285,636 (1)Interest on policy liabilities(1) (247,341) (242,845) 2Excess investment income $ 34,828 $ 42,791 (19)Per share $ 0.42 $ 0.47 (11)
(1) Interest on policy liabilities, at original discount rates, is a component of total policyholder benefits, a GAAP measure.
Net investment income declined 1% while average invested assets were relatively flat. Required interest on policy liabilities and average policy liabilities both increased 2%.
GLOBE LIFE INC.Earnings Release-Q2 2025(Dollar amounts in thousands, except share and per share data)(Unaudited)The composition of the investment portfolio at book value at June 30, 2025 is as follows:Investment Portfolio As of June 30, 2025 Amount % of TotalFixed maturities at fair value(1) $ 17,365,354 87Mortgage loans 455,767 2Policy loans 718,621 4Other long-term investments(2) 1,268,624 6Short-term investments 116,724 1Total $ 19,925,090
(1) As of June 30, 2025, fixed maturities at amortized cost were $18.9 billion, net of $10.4 million of allowance for credit losses.(2) Includes $1.02 billion of investments accounted for under the fair value option which have a cost of $1.01 billion as of June 30, 2025.
Fixed maturities at amortized cost, net of allowance for credit losses, by asset class as of June 30, 2025 are as follows:
Fixed Maturity Portfolio by Sector As of June 30, 2025 Investment Below Total Grade Investment Amortized Grade Cost, netCorporate bonds $ 14,628,153 $ 491,174 $ 15,119,327Municipals 3,303,151 – 3,303,151Government, agencies, and GSEs(1) 450,798 – 450,798Collateralized debt obligations – – -Other asset-backed securities 64,518 11,648 76,166Total $ 18,446,620 $ 502,822 $ 18,949,442
(1) Government-Sponsored Enterprises
Below are fixed maturities available for sale by amortized cost, allowance for credit losses, and fair value at June 30, 2025 and the corresponding amounts of net unrealized gains and losses recognized in accumulated other comprehensive income (loss).
As of Amortized Allowance for Net Unrealized Fair Cost Credit Losses Gains Value (Losses)June 30, 2025 $ 18,959,797 $ (10,355) $ (1,584,088) $ 17,365,354
At amortized cost, net of allowance for credit losses, and at fair value, 97% of fixed maturities were rated “investment grade.” The fixed maturity portfolio earned an annual taxable equivalent effective yield of 5.29% during the second quarter of 2025, compared with 5.26% 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 2025(Dollar amounts in thousands, except share and per share data)(Unaudited)Comparable information for acquisitions of fixed maturity and other investments is as follows:Fixed Maturity Acquisitions Quarter Ended June 30, 2025 2024Amount $ 263,252 $ 240,669Average annual effective yield 6.4% 6.2%Average rating A A-Average life (in years) to:Next call 31.2 32.2Maturity 33.8 34.8Other Investment Acquisitions Quarter Ended June 30, 2025 2024Limited partnerships $ 36,985 $ 81,725Mortgage loans 31,215 33,761Common stock 1,342 2,044Other invested assets – 1,500Total $ 69,542 $ 119,030
SHARE REPURCHASE:
During the quarter, the Company repurchased 1.9 million shares of Globe Life Inc. common stock at a total cost of $226 million and an average share price of $121.13.
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, 2025:
Globe Life projects net operating income between$14.25 to $14.65 per diluted common share for the year ending December 31, 2025, reaffirming the previous guidance.
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 impact of inflation, immigration, geopolitical events, escalating tariff and non-tariff trade measures imposed by the U.S. and other countries, and other governmental actions on the U.S. economy and/or U.S. consumer confidence, 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 yields;
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 including the impact 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, including those described in the “Risk Factors” section of our most recent Annual Report on Form 10-K. 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 2025 earnings release conference call with financial analysts at 11:00 pm (Eastern) tomorrow, July24, 2025. 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.”
APPENDIXGLOBE LIFE INC.GAAP CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS Three Months Ended Six Months Ended June 30, June 30, 2025 2024 2025 2024Revenue:Life premium $ 839,544 $ 815,482 $ 1,669,407 $ 1,619,747Health premium 378,099 351,643 747,890 692,662Other premium – – – -Total premium 1,217,643 1,167,125 2,417,297 2,312,409Net investment income 282,169 285,636 562,783 568,214Realized gains (losses) (18,574) (12,589) (18,489) (24,388)Other income 49 74 118 150Total revenue 1,481,287 1,440,246 2,961,709 2,856,385Benefits and expenses:Life policyholder benefits(1) 519,355 518,792 1,029,111 1,038,663Health policyholder benefits(2) 229,924 205,423 463,853 407,750Other policyholder benefits 6,719 11,479 13,799 21,074Total policyholder benefits 755,998 735,694 1,506,763 1,467,487Amortization of deferred acquisition costs 111,401 101,915 216,916 201,393Commissions, premium taxes, and non-deferred acquisition costs 157,411 149,802 321,734 297,912Other operating expense 108,293 99,108 217,039 192,322Interest expense 34,885 31,404 69,877 60,025Total benefits and expenses 1,167,988 1,117,923 2,332,329 2,219,139Income before income taxes 313,299 322,323 629,380 637,246Income tax benefit (expense) (60,550) (63,968) (122,068) (124,674)Net income $ 252,749 $ 258,355 $ 507,312 $ 512,572Basic net income per common share $ 3.09 $ 2.83 $ 6.13 $ 5.53Diluted net income per common share $ 3.05 $ 2.83 $ 6.07 $ 5.51
(1) Net of total remeasurement gain of $16.7 million for the three months ended June 30, 2025, and a total remeasurement gain of $12.4 million for the same period in 2024. Net of total remeasurement gain of $25.3 million for the six months ended June 30, 2025, and a total remeasurement gain of $17.3 million for the same period in 2024.(2) Net of a total remeasurement gain of $3.9 million for the three months ended June 30, 2025, and a total remeasurement gain of $3.2 million for the same period in 2024. Net of a total remeasurement gain of $4.3 million for the six months ended June 30, 2025, and a total remeasurement gain of $6.5 million for the same period in 2024.
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