Globe Life (NYSE:GL) reported higher fourth-quarter earnings and outlined expectations for premium growth, underwriting margins, and capital deployment in its latest earnings call, citing favorable mortality trends, continued momentum in Medicare Supplement sales, and ongoing technology investments across its distribution platforms.
Quarterly results and profitability
For the fourth quarter, Globe Life said net income was $266 million, or $3.29 per share, compared with $255 million, or $3.01 per share in the prior-year period. Net operating income was $274 million, or $3.39 per share, up 8% from $3.14 per share a year earlier.
Insurance operations: premium growth and margin outlook
Total premium revenue rose 5% in the fourth quarter. The company’s outlook for 2026 calls for total premium revenue to grow approximately 7% to 8%.
Life insurance premium revenue increased 3% in the quarter to $850 million. Life underwriting margin was $350 million, up 4%, which management attributed to premium growth and lower overall policy obligations. For 2026, the company expects life premium growth of 4% to 4.5% and a life underwriting margin as a percent of premium in the range of 41.5% to 44.5%.
Health insurance premium revenue increased 9% to $392 million, and health underwriting margin rose 9% to $99 million. For 2026, Globe Life projects health premium growth of 14% to 16%, driven by strong sales activity and premium rate increases in its Medicare Supplement business. The company forecast health underwriting margin as a percent of premium of 23% to 27%, noting that the midpoint would be slightly below 2025 due to mix shift toward its United American General Agency business, which has a lower margin percentage than other distribution channels.
Administrative expenses were $92 million in the quarter, up about 1% year over year, and represented 7.4% of premium. For 2026, the company expects administrative expenses to be approximately 7.3% of premium, in line with 2025.
Distribution trends: agent counts, sales, and technology initiatives
On the marketing and distribution side, management emphasized long-term expansion in the agent base, noting that over the last 10 years the agent count has nearly doubled, while acknowledging short-term fluctuations. In the quarter, American Income Life reported life premiums up 6% to $457 million and life underwriting margin up 5% to $208 million. Net life sales rose 10% to $102 million, while average producing agents declined 2% to 11,699 due to higher-than-expected turnover. Management said sales growth was driven by improved agent productivity and that it introduced an initiative emphasizing agent retention.
At Liberty National, life premiums rose 4% to $98 million and life underwriting margin increased 6% to $36 million. Net life sales increased 6% to $28 million, while net health sales were roughly flat at $9 million. Average producing agents increased 6% to 3,965.
Family Heritage posted health premiums up 10% to $121 million and health underwriting margin up 10% to $44 million. Net health sales increased 15% to $31 million, supported by higher agent count and productivity, with average producing agents up 8% to 1,640. Management said the agency has delivered six consecutive quarters of strong agent count growth.
In the direct-to-consumer business, life premiums were approximately flat at $244 million, but life underwriting margin increased 3% to $74 million. Net life sales rose 24% to $29 million. Management said new technology introduced earlier in the year improved conversion of customer inquiries into sales “without incurring incremental underwriting risk,” enabling increased marketing volume. The company expects direct-to-consumer to increase leads generated for its three exclusive agencies by about 10% in 2026.
United American, the company’s general agency division, reported health premiums up 14% to $173 million, with underwriting margin of $8 million, up $2 million. Net health sales increased to $77 million, about $47 million above the prior-year quarter, which management attributed primarily to movement of Medicare beneficiaries from Medicare Advantage plans to Medicare Supplement plans. For 2026, management projected flat sales at United American after nearly doubling sales in 2025, citing “considerable dynamics” in the Medicare marketplace.
During Q&A, executives also addressed first-year lapse rates, noting higher-than-expected first-year lapses in direct-to-consumer and Liberty National. Management attributed the direct-to-consumer lapse pressure to higher lapses in internet-sourced business and said it would continue monitoring the trend.
Investments, capital deployment, and Bermuda reinsurance
In investment operations, excess investment income (net investment income less required interest) was $31 million, down about $8 million from the prior-year quarter. Net investment income was $281 million, roughly flat, while average invested assets rose 1%. Management said results were impacted by lower average invested asset growth, lower yields on certain short-term commercial mortgage loan and limited partnership investments versus a year ago, and quarter-to-quarter variability in limited partnership income. The company expects 2026 net investment income to grow 3% to 4%, required interest to rise around 4%, and excess investment income to be relatively flat.
Globe Life said invested assets totaled $21.7 billion, including $18.8 billion of fixed maturities at amortized cost. The fixed maturity portfolio’s net unrealized loss position was $1.2 billion, which management said was primarily interest-rate driven and related to bonds with maturities beyond 10 years; the company reiterated its intent and ability to hold securities to maturity.
On capital returns, the company repurchased about 1.3 million shares in the fourth quarter for $170 million at an average price of $134.44. For full-year 2025, Globe Life repurchased 5.4 million shares for $685 million at an average price of $126.41. Including about $85 million of dividend payments, the company returned roughly $770 million to shareholders during 2025. For 2026, management guided to dividends of about $85 million to $90 million and share repurchases of roughly $535 million to $585 million.
The company also discussed the formation of Globe Life Re Ltd., a Bermuda reinsurance affiliate, and said it completed initial transactions during the quarter. Management disclosed that the initial reinsurance transaction transferred about $1.2 billion of statutory reserves. Executives said the company intends to reinsure some new business and incrementally more in-force life business in 2026, growing the reinsured block over the next three to five years. However, they emphasized that no benefit from the Bermuda transaction is included in 2026 excess cash flow guidance at this time, and that reciprocal jurisdiction timing and potential distributions remain subject to regulatory approvals.
For 2026, Globe Life guided to net operating earnings per diluted share of $14.95 to $15.65, representing 5% growth at the midpoint. The guidance includes an estimated third-quarter benefit from assumption updates and a resulting remeasurement gain of $50 million to $100 million, which management said could raise the life margin percentage in the third quarter to 48% to 52%.
About Globe Life (NYSE:GL)
Globe Life, traded on the NYSE under the symbol GL, is a U.S.-based insurance holding company that underwrites and distributes a range of life and supplemental health insurance products. Through its subsidiary brands—Globe Life, American Income Life, Liberty National Life, United American Insurance Company and Family Heritage Life—it offers term life, whole life, fixed annuities and supplemental health coverage designed to meet the needs of individuals and families across various socioeconomic segments.
The company’s product suite includes low-cost, easy-to-understand life insurance policies, accidental death and dismemberment coverage, hospital indemnity plans and specified disease insurance.
