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1. Company Snapshot

1.a. Company Description

Globe Life Inc., through its subsidiaries, provides various life and supplemental health insurance products, and annuities to lower middle to middle income households in the United States.The company operates through four segments: Life Insurance, Supplemental Health Insurance, Annuities, and Investments.It offers whole life, term life, and other life insurance products; Medicare supplement and supplemental health insurance, such as critical illness and accident plans; and single-premium and flexible-premium deferred annuities.


The company was formerly known as Torchmark Corporation and changed its name to Globe Life Inc.in August 2019.Globe Life Inc.


was incorporated in 1979 and is headquartered in McKinney, Texas.

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1.b. Last Insights on GL

Globe Life Inc.'s recent performance was driven by strong Q2 earnings, with a 10% increase, fueled by robust Life and Health premiums. The company's American Income and Liberty National divisions performed well, and its invested assets and liquidity position remained strong. Additionally, Globe Life was cleared of a regulatory investigation, and analysts issued optimistic updates, contributing to a positive outlook. The company's solid underwriting results and growing premiums helped offset declines in investment income and rising expenses.

1.c. Company Highlights

2. Globe Life Inc. Beats Earnings Expectations with Strong Underwriting Margins

The company's third-quarter net income was $388 million or $4.73 per share, compared to $303 million or $3.44 per share a year ago. Net operating income for the quarter was $394 million or $4.81 per share, an increase of 38% over the $3.49 per share from a year ago, beating analyst estimates of $4.54. The strong performance was driven by significant growth in underwriting margins, with life underwriting margin up 18% to $261 million at American Income and 57% to $70 million at Liberty National.

Publication Date: Oct -27

📋 Highlights
  • Net Income Growth:: Q3 net income rose 29.6% to $388M ($4.73 EPS) from $303M ($3.44 EPS) YoY.
  • Agent Expansion Target:: Aims to surpass 28,000 exclusive agents and $1.4B annual sales by 2030, with agent count nearly doubling in 10 years.
  • Underwriting Margin Surge:: Liberty National’s life underwriting margin jumped 57% to $70M, while Family Heritage’s health margin surged 49% to $51M.
  • Share Repurchases:: Repurchased 840K shares ($113M) in Q3; plans $685M in 2025 buybacks and $85M dividends.
  • 2025 Guidance:: Net operating EPS forecasted at $14.40–$14.60 (17% growth), with total premium revenue up 6–7% and life premiums rising 4–5%.

Segment Performance

The company's exclusive agency force continues to drive growth, with average agent count nearly doubling over the past 10 years. Life premiums were up 5% to $451 million at American Income, and health premiums increased 10% to $119 million at Family Heritage. In the direct-to-consumer channel, life underwriting margin increased 29% to $114 million, despite a 1% decline in life premiums.

Investment Operations

Excess investment income was $37 million, down approximately $3 million from the year ago quarter. Net investment income was $286 million, slightly above last year's third quarter. The company expects net investment income to be flat and required interest to grow around 2%, resulting in a decline in excess investment income of around 10% to 15% for the year.

Guidance and Outlook

The company expects net operating earnings per diluted share to be in the range of $14.40 to $14.60 in 2025, representing 17% growth at the midpoint. The company anticipates total premium revenue growth of 6% to 7%, with life premium revenue growing 4% to 5% and health premium revenue growing 9% to 11%. Analysts estimate next year's revenue growth at 5.1%.

Valuation

With a Price-to-Book Ratio (P/B) of 2.06, the company's valuation appears reasonable, considering its strong underwriting profitability and growth prospects. The Dividend Yield is 0.79%, which may not be attractive to income investors, but the company's commitment to returning capital to shareholders through share repurchases is evident, with $113 million spent on repurchases in the quarter.

Capital and Liquidity

The company ended the quarter with liquid assets of approximately $105 million and expects to conclude the year with liquid assets in the range of $50 million to $60 million. The company's capital generation capabilities are expected to be enhanced by a $500 million contingent capital funding arrangement.

3. NewsRoom

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4 Accident & Health Insurers to Watch Amid Rising Medical Costs

Dec -02

Source: zacks.com

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Globe Life Inc. $GL Shares Sold by Bayview Asset Management LLC

Dec -01

Source: defenseworld.net

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HALPER SADEH LLC ENCOURAGES GLOBE LIFE INC. SHAREHOLDERS TO CONTACT THE FIRM TO DISCUSS THEIR RIGHTS

Nov -28

Source: prnewswire.com

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4,203 Shares in Globe Life Inc. $GL Purchased by Aviva PLC

Nov -14

Source: defenseworld.net

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GL Outperforms Industry, Trades at a Discount: How to Play the Stock

Nov -13

Source: zacks.com

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Globe Life Inc. $GL Shares Purchased by Allworth Financial LP

Nov -12

Source: defenseworld.net

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GLOBE LIFE INC. DECLARES DIVIDEND

Nov -06

Source: prnewswire.com

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Globe Life and North Texas Food Bank Expand Partnership to Deliver Fresh Food Across the Region

Oct -28

Source: prnewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.49%)

6. Segments

Life

Expected Growth: 4.5%

Globe Life's 4.5% growth in Life segment is driven by increasing demand for term life insurance, expansion in the middle market, and strategic acquisitions. Additionally, the company's focus on underwriting excellence, diversified distribution channels, and effective expense management contribute to its growth momentum.

Health

Expected Growth: 4.2%

Globe Life Inc.'s 4.2% growth in Health segment is driven by increasing demand for supplemental health insurance, expansion of Medicare Advantage plans, and rising healthcare costs. Additionally, strategic acquisitions, such as the purchase of Liberty Bankers Life, have contributed to the growth. Furthermore, the company's focus on digital transformation and customer engagement has improved sales and retention rates.

Investment

Expected Growth: 4.8%

Globe Life Inc.'s 4.8% growth is driven by increasing demand for life insurance and supplemental health products, expansion into new markets, and strategic acquisitions. Additionally, the company's focus on digital transformation, cost savings initiatives, and strong capital management have contributed to its growth momentum.

Corporate & Other

Expected Growth: 3.8%

Globe Life's Corporate & Other segment growth of 3.8% is driven by increased investment income, favorable mortality experience, and expense management. Additionally, the company's strategic investments in technology and digital capabilities have improved operational efficiency, contributing to the segment's growth.

7. Detailed Products

Life Insurance

Globe Life offers a range of life insurance products, including term life, whole life, and universal life insurance, to provide financial protection for loved ones in the event of death.

Accident Insurance

Globe Life's accident insurance provides financial protection against unexpected medical expenses resulting from accidents, including injuries and illnesses.

Supplemental Health Insurance

Globe Life's supplemental health insurance products provide additional financial protection against unexpected medical expenses, including hospital stays, surgeries, and other medical procedures.

Mortgage Protection Insurance

Globe Life's mortgage protection insurance provides financial protection for homeowners, paying off the mortgage balance in the event of death or disability.

Annuities

Globe Life's annuity products provide a guaranteed income stream for a set period or for life, helping individuals plan for retirement and ensure a steady income.

8. Globe Life Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Globe Life Inc. is medium due to the presence of alternative insurance providers and financial institutions offering similar products.

Bargaining Power Of Customers

The bargaining power of customers is low for Globe Life Inc. as individual customers have limited negotiating power, and the company has a diversified customer base.

Bargaining Power Of Suppliers

The bargaining power of suppliers is medium for Globe Life Inc. as the company relies on a network of independent agents and brokers, but has some negotiating power due to its size and scale.

Threat Of New Entrants

The threat of new entrants is low for Globe Life Inc. due to the high barriers to entry in the insurance industry, including regulatory hurdles and capital requirements.

Intensity Of Rivalry

The intensity of rivalry is high for Globe Life Inc. due to the competitive nature of the insurance industry, with many established players competing for market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 32.04%
Debt Cost 5.95%
Equity Weight 67.96%
Equity Cost 7.84%
WACC 7.23%
Leverage 47.15%

11. Quality Control: Globe Life Inc. passed 6 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Primerica

A-Score: 6.2/10

Value: 5.6

Growth: 7.3

Quality: 7.4

Yield: 3.0

Momentum: 5.0

Volatility: 9.0

1-Year Total Return ->

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Stock-Card
Globe Life

A-Score: 6.1/10

Value: 6.7

Growth: 6.3

Quality: 6.5

Yield: 1.0

Momentum: 8.5

Volatility: 7.7

1-Year Total Return ->

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F&G Annuities & Life

A-Score: 5.9/10

Value: 8.4

Growth: 8.4

Quality: 6.2

Yield: 5.0

Momentum: 1.5

Volatility: 6.0

1-Year Total Return ->

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Stock-Card
American Equity

A-Score: 5.4/10

Value: 9.6

Growth: 7.3

Quality: 6.1

Yield: 1.0

Momentum: 5.0

Volatility: 3.3

1-Year Total Return ->

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Genworth Financial

A-Score: 5.0/10

Value: 7.3

Growth: 2.4

Quality: 6.0

Yield: 0.0

Momentum: 7.5

Volatility: 6.7

1-Year Total Return ->

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Brighthouse Financial

A-Score: 4.5/10

Value: 7.3

Growth: 2.9

Quality: 6.7

Yield: 0.0

Momentum: 7.0

Volatility: 3.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

131.23$

Current Price

131.23$

Potential

-0.00%

Expected Cash-Flows