Globe Life Reports Q3 2025 Earnings With Strong Underwriting and Investment Results

Globe Life Inc. reported strong third quarter 2025 financial results, with net income reaching $4.73 per diluted common share, up from $3.44 a year earlier. The company’s net operating income, a key non-GAAP performance measure, rose 38% to $4.81 per diluted share. These results reflect enhanced underwriting performance, primarily in life and health insurance segments, amid stable investment income.

Insurance underwriting income increased 30% year-over-year to $503 million, driven by a 24% and 25% rise in life and health insurance underwriting margins, respectively. Life insurance accounted for 82% of underwriting margin and 69% of total premium revenue, while health insurance contributed 18% of margin and 31% of premium revenue. Notably, net sales grew 2% for life insurance and 21% for health insurance, with distribution channels such as American Income Life and Family Heritage showing significant margin gains.

The company’s investment portfolio remains robust, valued at over $20.3 billion, with 88% in fixed maturities and a 98% investment-grade rating. Net investment income was stable at approximately $286 million, with excess investment income slightly down 7%, reflecting higher interest costs on policy liabilities. The fixed maturity portfolio yielded a 5.26% effective yield.

Globe Life’s administrative expenses decreased modestly as a percentage of premiums, aiding underwriting profitability. The company repurchased 840,242 shares of common stock during the quarter at an average price of $134.17, demonstrating active capital management.

Shareholders’ equity, excluding accumulated other comprehensive income (AOCI), rose to $7.66 billion, driving book value per share excluding AOCI to $93.63, up from $83.92 a year earlier. Return on equity based on net operating income improved to 16.6%, indicating enhanced operational efficiency.

The report outlines the company’s stable liquidity position, supported by strong cash flows from its basic protection life and supplemental health insurance policies. The firm projects net operating income of $14.40 to $14.60 per diluted share for 2025 and anticipates further growth to $14.60 to $15.30 per share in 2026.

Risk factors outlined include economic conditions, regulatory changes, interest rate fluctuations, competition, litigation, and operational challenges, reflecting the complex environment for insurance providers.

Globe Life’s diversified distribution model includes exclusive divisions and an independent agency, enabling broad market reach and adaptable sales performance across channels. The average count of producing agents increased modestly in key divisions, supporting growth in new premiums.

Overall, Globe Life’s Q3 2025 results indicate steady business growth, underwriting margin expansion, and disciplined investment and capital strategies, positioning the company for anticipated performance improvement into 2026.