Globe Life Inc. Q1 2024 Form 10-Q Financial Report
Globe Life Inc. Q1 2024 Form 10-Q Financial Report
Globe Life Inc. has filed its Form 10-Q for the quarterly period ended March 31, 2024, with the Securities and Exchange Commission. The company is a large accelerated filer and has 92,269,711 shares of common stock outstanding as of April 30, 2024.
Company Overview
Globe Life Inc. is a holding company for a group of insurance companies that market life and supplemental health insurance products to middle-income households in the United States.
Financial Highlights
Net income for the first quarter of 2024 was $254 million, up 14% from $224 million in the first quarter of 2023. On a per share basis, net income was $2.67, up 17%.
Total premium revenue increased 5% to $1.15 billion. Life premium revenue increased 4% and health premium revenue increased 6%.
Net investment income grew 10% to $283 million due to portfolio growth and higher interest rates.
Total net sales rose 7% to $204 million. First-year collected premium increased 10% to $161 million.
The average number of producing agents increased 13% over the prior year, driving sales growth.
Profitability by Segment
| Segment | Underwriting Margin | % Change |
|---|---|---|
| Life Insurance | $309 million | +6% |
| Health Insurance | $94 million | +3% |
| Annuities | $2 million | -16% |
| Excess Investment Income | $44 million | +50% |
Life insurance remains the largest contributor, generating 76% of total underwriting margin. Margin increased due to premium growth and lower policy obligations.
Health margin rose slightly despite emphasis on growing life insurance sales.
Excess investment income grew 50%, benefiting from portfolio growth and higher interest rates.
Operating Expenses
Total operating expenses increased 11% to $93 million.
As a percentage of premiums, expenses were 7.0% compared to 6.7% a year ago.
Increase driven primarily by higher technology costs, legal costs and salaries.
Share Repurchases
Repurchased $16 million of common stock, lower than expected due to potential acquisition evaluation.
Over the last 38 years, used $9.4 billion of excess cash flow for repurchases.
Financial Condition
Maintains strong liquidity position through insurance subsidiary dividends, cash flows, $250 million credit facility and access to debt markets.
Long-term debt outstanding remained at $1.6 billion. Weighted average interest rate increased due to higher market rates.
Shareholders’ equity rose from $4.5 billion to $5.0 billion due to net income and higher unrealized gains on investments.
Outlook
Globe Life continues to demonstrate strong core performance, including premium growth, margin expansion and double-digit ROE. The company remains well-capitalized and focused on profitably growing its market-leading life and health insurance operations over the long term.
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