On April 30, 2025, Globe Life Inc. (NYSE: GL) released its first quarter 2025 financial results, showcasing a solid performance across its life and health insurance segments. This authoritative update reveals key areas of growth, profitability, and strategic capital management, underscoring the company’s strength in the insurance sector.
Return on equity (ROE) for the quarter reached 19.0%, reflecting efficient use of shareholder capital.
Net income per share increased 13% year-over-year, while net operating income per share grew 10%.
Insurance underwriting income, a key profitability measure, rose 4% to \(336.3 million, equating to \)3.98 per share, a 17% increase.
Total premium revenue increased 5% to $1.20 billion, driven by a 3% increase in life insurance premiums and an 8% increase in health insurance premiums.
Life Insurance: Accounted for 80% of underwriting margin and 69% of total premium revenue. Life premiums climbed 3% year-over-year and the underwriting margin increased 9%. Divisional growth robust with American Income Life up 6% in premiums and Liberty National showing a 6% increase in premiums and 8% agent count growth.
Health Insurance: Represented 20% of underwriting margin and 31% of premiums. Net health sales surged 24%, supported by increases in Family Heritage health sales (7%) and premiums (9%).
Excess investment income declined 18% to $35.9 million, impacted by lower net investment income and higher interest on debt costs upwards 22% year-over-year.
The fixed maturity investment portfolio totaled approximately $20 billion, with 97% rated investment grade and yielding 5.25% annual taxable equivalent effective yield.
The company repurchased 1.5 million shares for $177 million during the quarter, reinforcing shareholder value.
The average producing agent count grew across divisions: Liberty National by 8%, Family Heritage by 9%, and American Income by 3% compared to Q1 2024.
Administrative expenses increased slightly, representing 7.3% of premiums, compared to 7.0% in Q1 2024.
Globe Life’s Q1 2025 performance aligns with prior management commentary emphasizing steady growth in life insurance premiums, agent expansion, and careful expense management as drivers of strong operating margins. The company’s robust 19.0% ROE outpaces the 20.18% ROE for FY 2024, signifying resilience amid economic uncertainties including tariff impacts and interest rate fluctuations cited in previous earnings calls.
Globe Life reaffirmed its 2025 net operating income guidance range of \(13.45 to \)14.05 per diluted share, signaling confidence in its strategic execution and market position.
For investors and industry watchers alike, Globe Life’s Q1 2025 results demonstrate a powerful combination of disciplined underwriting, targeted premium growth, and effective capital deployment. This positions the company well to navigate ongoing economic challenges.
For full details, access the original earnings release here.