MCKINNEY, Texas, Feb. 7, 2024
/PRNewswire/ -- Globe Life Inc. (NYSE: GL) reported today
that for the quarter ended December 31,
2023, net income was $2.88 per
diluted common share, compared with $2.46 per diluted common share for the year-ago
quarter. Net operating income for the quarter was $2.80 per diluted common share, compared with
$2.55 per diluted common share for
the year-ago quarter.
Net income for the year ended December
31, 2023 was $10.07 per
diluted common share, compared with $9.04 per diluted common share for the year-ago
period. Net operating income for the year ended December 31, 2023 was $10.65 per diluted common share compared with
$9.71 per diluted common share for
the year-ago period.
The results included herein reflect the adoption of ASU 2018-12,
Financial Services - Insurance (Topic 944): Targeted
Improvements to the Accounting for Long-Duration Contracts
(LDTI). Globe Life Inc. implemented the standard on
January 1, 2023 using the modified
retrospective transition method at adoption. As a result of this
election, the prior year figures have been restated as of
January 1, 2021 with impacts to
Shareholders' Equity, underwriting margins and net income.
HIGHLIGHTS:
- Net income as an ROE was 23.2% for the twelve months ended
December 31, 2023. Net operating
income as an ROE excluding accumulated other comprehensive income
(AOCI) was 14.7% for the same period.
- Net income increased 13% and net operating income increased 6%
over the year-ago quarter. For the full year, net income was
$971 million and net operating income
surpassed $1.0 billion for the first
time in company history.
- At the American Income Life Division, life net sales increased
9% and life premium increased 7% over the year-ago quarter.
Additionally, the average producing agent count increased 20% over
the year-ago quarter.
- At the Liberty National Division, life net sales and health net
sales increased over the year-ago quarter by 12% and 9%,
respectively. Additionally, life premiums increased 8% and the
average producing agent count increased 15% over the year-ago
quarter.
- At the Family Heritage Division, health net sales increased 12%
and premiums increased 8% over the year-ago quarter.
- Net investment income grew 6% over the year-ago quarter.
- 660,170 shares of Globe Life Inc. common stock were repurchased
during the quarter.
Note: As used in the
earnings release, "Globe Life," the "Company," "we," "our," and
"us" refer to Globe Life Inc., a Delaware corporation incorporated
in 1979, its subsidiaries and affiliates.
|
GLOBE LIFE
INC.
Earnings
Release—Q4 2023
(Dollar amounts in
thousands, except share and per share data)
(Unaudited)
|
|
RESULTS OF
OPERATIONS
|
|
Net operating income, a
non-GAAP(1) financial measure, has been used
consistently by Globe Life's management for many years to
evaluate
the operating performance of the Company, and is a measure commonly
used in the life insurance industry. It differs from net income
primarily
because it excludes certain non-operating items such as realized
investment gains and losses and certain significant and unusual
items included
in net income. Management believes an analysis of net operating
income is important in understanding the profitability and
operating trends of the
Company's business. Net income is the most directly comparable GAAP
measure.
|
|
The following table
represents Globe Life's operating summary for the three months
ended December 31, 2023 and 2022:
|
|
Operating
Summary
|
|
Per
Share
|
|
|
|
|
|
|
|
Three Months
Ended
December
31,
|
|
|
|
Three Months
Ended
December
31,
|
|
|
|
2023
|
|
2022
|
|
%
Chg.
|
|
2023
|
|
2022
|
|
%
Chg.
|
Insurance underwriting
income(2)
|
$
3.43
|
|
$
3.18
|
|
8
|
|
$
327,825
|
|
$
314,131
|
|
4
|
Excess investment
income(2)
|
0.38
|
|
0.31
|
|
23
|
|
35,824
|
|
30,716
|
|
17
|
Interest on
debt
|
(0.27)
|
|
(0.25)
|
|
8
|
|
(25,676)
|
|
(24,658)
|
|
4
|
Parent company
expense
|
(0.03)
|
|
(0.03)
|
|
|
|
(2,612)
|
|
(3,067)
|
|
|
Income tax
expense
|
(0.68)
|
|
(0.63)
|
|
8
|
|
(64,993)
|
|
(61,744)
|
|
5
|
Stock compensation
benefit (expense), net of tax
|
(0.03)
|
|
(0.04)
|
|
|
|
(2,955)
|
|
(4,057)
|
|
|
Net operating
income
|
2.80
|
|
2.55
|
|
10
|
|
267,413
|
|
251,321
|
|
6
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciling items,
net of tax:
|
|
|
|
|
|
|
|
|
|
|
|
Realized gain
(loss)—investments
|
0.11
|
|
(0.08)
|
|
|
|
10,496
|
|
(7,665)
|
|
|
Non-operating
expenses
|
(0.03)
|
|
—
|
|
|
|
(2,396)
|
|
(460)
|
|
|
Legal
proceedings
|
(0.01)
|
|
(0.01)
|
|
|
|
(711)
|
|
(853)
|
|
|
Net
income(3)
|
$
2.88
|
|
$
2.46
|
|
|
|
$
274,802
|
|
$
242,343
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
diluted shares outstanding
|
95,464
|
|
98,640
|
|
|
|
|
|
|
|
|
|
(1) GAAP is
defined as accounting principles generally accepted in the United
States of America.
|
(2) Definitions
included within this document.
|
(3) A GAAP-basis
condensed consolidated statement of operations is included in the
appendix of this report.
|
|
Note: Tables in this
earnings release may not sum due to rounding.
|
GLOBE LIFE INC.
Earnings Release—Q4 2023
(Dollar amounts in thousands, except share and per
share data)
(Unaudited)
|
|
The following table
represents Globe Life's operating summary for the year ended
December 31, 2023 and 2022:
|
|
Operating
Summary
|
|
Per
Share
|
|
|
|
|
|
|
|
Year Ended December
31,
|
|
|
|
Year Ended December
31,
|
|
|
|
2023
|
|
2022
|
|
%
Chg.
|
|
2023
|
|
2022
|
|
%
Chg.
|
Insurance underwriting
income
|
$
13.27
|
|
$
12.32
|
|
8
|
|
$
1,278,548
|
|
$
1,219,078
|
|
5
|
Excess investment
income
|
1.35
|
|
1.06
|
|
27
|
|
130,382
|
|
104,589
|
|
25
|
Interest on
debt
|
(1.06)
|
|
(0.91)
|
|
16
|
|
(102,316)
|
|
(90,395)
|
|
13
|
Parent company
expense
|
(0.11)
|
|
(0.11)
|
|
|
|
(10,866)
|
|
(11,156)
|
|
|
Income tax
expense
|
(2.59)
|
|
(2.41)
|
|
7
|
|
(249,546)
|
|
(238,177)
|
|
5
|
Stock compensation
benefit (expense), net of tax
|
(0.20)
|
|
(0.23)
|
|
|
|
(19,558)
|
|
(22,912)
|
|
|
Net operating
income
|
10.65
|
|
9.71
|
|
10
|
|
1,026,644
|
|
961,027
|
|
7
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciling items,
net of tax:
|
|
|
|
|
|
|
|
|
|
|
|
Realized gain
(loss)—investments
|
(0.54)
|
|
(0.61)
|
|
|
|
(51,884)
|
|
(60,473)
|
|
|
Non-operating
expenses
|
(0.03)
|
|
(0.04)
|
|
|
|
(3,294)
|
|
(4,196)
|
|
|
Legal
proceedings
|
(0.01)
|
|
(0.02)
|
|
|
|
(711)
|
|
(1,972)
|
|
|
Net
income
|
$
10.07
|
|
$
9.04
|
|
|
|
$
970,755
|
|
$
894,386
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
diluted shares outstanding
|
96,364
|
|
98,985
|
|
|
|
|
|
|
|
|
GLOBE LIFE INC.
Earnings Release—Q4 2023
(Dollar amounts in thousands, except share and per
share data)
(Unaudited)
|
|
MANAGEMENT VS. GAAP
MEASURES
|
|
Shareholders' equity,
excluding AOCI, and book value per share, excluding AOCI, are
non-GAAP measures that are utilized by management to view
the business without the effect of changes in AOCI, which are
primarily attributable to fluctuation in interest
rates. Management views the business in
this manner because it creates more meaningful and easily
identifiable trends, as we exclude fluctuations resulting from
changes in interest rates.
Shareholders' equity and book value per share are the most directly
comparable GAAP measures.
|
|
|
Year
Ended
December
31,
|
|
2023
|
|
2022
|
Net income
|
$
970,755
|
|
$
894,386
|
Net operating
income
|
1,026,644
|
|
961,027
|
Net income as an
ROE(1)
|
23.2 %
|
|
29.2 %
|
Net operating income as
an ROE (excluding AOCI)(1)
|
14.7 %
|
|
14.8 %
|
|
|
|
|
|
December
31,
|
|
2023
|
|
2022
|
Shareholders'
equity
|
$ 4,486,803
|
|
$ 3,949,577
|
Impact of adjustment to
exclude AOCI
|
2,772,419
|
|
2,790,313
|
Shareholders' equity,
excluding AOCI
|
$ 7,259,222
|
|
$ 6,739,890
|
|
|
|
|
Book value per
share
|
$
47.10
|
|
$
40.05
|
Impact of adjustment to
exclude AOCI
|
29.11
|
|
28.30
|
Book value per share,
excluding AOCI
|
$
76.21
|
|
$
68.35
|
|
(1) Calculated using
average shareholders' equity for the measurement
period.
|
INSURANCE OPERATIONS:
Life insurance accounted for 75% of the Company's insurance
underwriting margin for the quarter and 70% of total premium
revenue.
Health insurance accounted for 24% of the Company's insurance
underwriting margin for the quarter and 30% of total premium
revenue.
Net sales of life insurance increased 3% for the quarter, and
net health sales increased 21%.
The following table summarizes Globe Life's premium revenue by
product type for the three months ended December 31, 2023 and 2022:
GLOBE LIFE INC.
Earnings Release—Q4 2023
(Dollar amounts in thousands, except share and per
share data)
(Unaudited)
|
|
Insurance Premium
Revenue
|
|
Quarter
Ended
|
|
December 31,
2023
|
|
December 31,
2022
|
|
%
Chg.
|
Life
insurance
|
$
794,815
|
|
$
762,929
|
|
4
|
Health insurance
|
335,857
|
|
326,020
|
|
3
|
Annuity
|
—
|
|
—
|
|
|
Total
|
$
1,130,672
|
|
$
1,088,949
|
|
4
|
INSURANCE
UNDERWRITING INCOME
|
|
Insurance underwriting
margin is management's measure of profitability of the Company's
life, health, and annuity segments' underwriting
performance,
and consists of premiums less policy obligations (excluding
interest on policy liabilities), commissions and other acquisition
expenses. Insurance
underwriting income is the sum of the insurance underwriting
margins of the life, health, and annuity segments, plus other
income, less administrative
expenses. It excludes the investment segment, interest on
debt, Parent Company expense, stock compensation expense and
income taxes.
Management believes this information helps provide a better
understanding of the business and a more meaningful analysis of
underwriting results by
distribution channel. Insurance underwriting income, a
non-GAAP measure, is a component of net operating income, which is
reconciled to net income
in the Results of Operations section above.
|
|
The following table
summarizes Globe Life's insurance underwriting income by segment
for the three months ended December 31, 2023 and 2022:
|
|
Insurance
Underwriting Income
|
|
Quarter
Ended
|
|
December 31,
2023
|
|
% of
Premium
|
|
December 31,
2022
|
|
% of
Premium
|
|
%
Chg.
|
Insurance underwriting
margins:
|
|
|
|
|
|
|
|
|
|
Life
|
$
305,480
|
|
38
|
|
$
292,922
|
|
38
|
|
4
|
Health
|
97,486
|
|
29
|
|
96,224
|
|
30
|
|
1
|
Annuity
|
1,946
|
|
|
|
2,629
|
|
|
|
|
|
404,912
|
|
|
|
391,775
|
|
|
|
3
|
Other income
|
123
|
|
|
|
384
|
|
|
|
|
Administrative
expenses
|
(77,210)
|
|
|
|
(78,028)
|
|
|
|
(1)
|
Insurance
underwriting income
|
$
327,825
|
|
|
|
$
314,131
|
|
|
|
4
|
Per
share
|
$
3.43
|
|
|
|
$
3.18
|
|
|
|
8
|
The ratio of administrative expenses to premium was 6.8%,
compared with 7.2% for the year-ago quarter.
GLOBE LIFE INC.
Earnings Release—Q4 2023
(Dollar amounts in thousands, except share and per
share data)
(Unaudited)
|
|
LIFE INSURANCE
RESULTS BY DISTRIBUTION CHANNEL
|
|
Our distribution
channels consist of the following exclusive agencies: American
Income Life Division (American Income), Liberty National
Division
(Liberty National) and Family Heritage Division (Family Heritage);
an independent agency, United American Division (United American);
and our
Direct to Consumer Division (Direct to Consumer).
|
|
Total premium,
underwriting margins, first-year collected premium and net sales by
all distribution channels are shown at
https://investors.globelifeinsurance.com at "Financial
Reports and Other Financial Information."
|
|
Life Underwriting
Margin
|
|
Quarter
Ended
|
|
|
|
December
31,
|
|
|
|
2023
|
|
2022
|
|
|
|
Amount
|
|
% of
Premium
|
|
Amount
|
|
% of
Premium
|
|
%
Chg.
|
American
Income
|
$
183,176
|
|
45
|
|
$
174,755
|
|
46
|
|
5
|
Direct to
Consumer
|
59,241
|
|
24
|
|
60,344
|
|
24
|
|
(2)
|
Liberty
National
|
31,144
|
|
35
|
|
26,768
|
|
32
|
|
16
|
Other
|
31,919
|
|
62
|
|
31,055
|
|
59
|
|
3
|
Total
|
$
305,480
|
|
38
|
|
$
292,922
|
|
38
|
|
4
|
|
Life
Premium
|
|
Quarter
Ended
|
|
|
|
December
31,
|
|
|
|
2023
|
|
2022
|
|
%
Chg.
|
American
Income
|
$
406,356
|
|
$
380,922
|
|
7
|
Direct to
Consumer
|
247,274
|
|
246,471
|
|
—
|
Liberty
National
|
89,700
|
|
83,320
|
|
8
|
Other
|
51,485
|
|
52,216
|
|
(1)
|
Total
|
$
794,815
|
|
$
762,929
|
|
4
|
|
|
Life Net
Sales(1)
|
|
Quarter
Ended
|
|
|
|
December
31,
|
|
|
|
2023
|
|
2022
|
|
%
Chg.
|
American
Income
|
$
76,323
|
|
$
69,796
|
|
9
|
Direct to Consumer
|
25,861
|
|
30,676
|
|
(16)
|
Liberty
National
|
26,046
|
|
23,252
|
|
12
|
Other
|
2,188
|
|
2,568
|
|
(15)
|
Total
|
$
130,418
|
|
$
126,292
|
|
3
|
|
|
(1)
|
Net sales is calculated
as annualized premium issued, net of cancellations in the first
thirty days after issue, except in the case of Direct to
Consumer,
where net sales is annualized premium issued at the time the first
full premium is paid after any introductory offer period has
expired. Management
considers net sales to be a better indicator of the rate of premium
growth than annualized premium issued.
|
GLOBE LIFE INC.
Earnings Release—Q4 2023
(Dollar amounts in thousands, except share and per
share data)
(Unaudited)
|
|
HEALTH INSURANCE
RESULTS BY DISTRIBUTION CHANNEL
|
|
Health Underwriting
Margin
|
|
Quarter
Ended
|
|
|
|
December
31,
|
|
|
|
2023
|
|
2022
|
|
|
|
Amount
|
|
% of
Premium
|
|
Amount
|
|
% of
Premium
|
|
%
Chg.
|
United
American
|
$
14,180
|
|
10
|
|
$
16,908
|
|
12
|
|
(16)
|
Family
Heritage
|
35,633
|
|
35
|
|
31,921
|
|
34
|
|
12
|
Liberty
National
|
27,157
|
|
57
|
|
27,024
|
|
58
|
|
—
|
American
Income
|
19,080
|
|
62
|
|
18,360
|
|
62
|
|
4
|
Direct to Consumer
|
1,436
|
|
8
|
|
2,011
|
|
11
|
|
(29)
|
Total
|
$
97,486
|
|
29
|
|
$
96,224
|
|
30
|
|
1
|
|
Health
Premium
|
|
Quarter
Ended
|
|
|
|
December
31,
|
|
|
|
2023
|
|
2022
|
|
%
Chg.
|
United
American
|
$
138,586
|
|
$
137,908
|
|
—
|
Family
Heritage
|
102,180
|
|
94,391
|
|
8
|
Liberty
National
|
47,416
|
|
46,678
|
|
2
|
American
Income
|
30,676
|
|
29,423
|
|
4
|
Direct to Consumer
|
16,999
|
|
17,620
|
|
(4)
|
Total
|
$
335,857
|
|
$
326,020
|
|
3
|
|
|
Health Net
Sales(1)
|
|
Quarter
Ended
|
|
|
|
December
31,
|
|
|
|
2023
|
|
2022
|
|
%
Chg.
|
United
American
|
$
28,155
|
|
$
20,110
|
|
40
|
Family
Heritage
|
25,228
|
|
22,432
|
|
12
|
Liberty
National
|
9,349
|
|
8,612
|
|
9
|
American
Income
|
4,235
|
|
3,921
|
|
8
|
Direct to
Consumer
|
2,220
|
|
2,188
|
|
1
|
Total
|
$
69,187
|
|
$
57,263
|
|
21
|
|
|
(1)
|
Net sales is calculated
as annualized premium issued, net of cancellations in the first
thirty
days after issue, except in the case of Direct to Consumer, where
net sales is annualized
premium issued at the time the first full premium is paid after any
introductory offer period
has expired. Management considers net sales to be a better
indicator of the rate of premium
growth than annualized premium issued.
|
GLOBE LIFE INC.
Earnings Release—Q4 2023
(Dollar amounts in thousands, except share and per
share data)
(Unaudited)
|
|
PRODUCING EXCLUSIVE
AGENT COUNT RESULTS BY DISTRIBUTION CHANNEL
|
|
|
Quarterly
Average
Producing Agent
Count(1)
|
|
Quarter
Ended
|
|
|
|
Quarter
Ended
|
|
December
31,
|
|
|
|
September
30,
|
|
2023
|
|
2022
|
|
%
Chg.
|
|
2023
|
American Income
|
11,131
|
|
9,243
|
|
20
|
|
10,983
|
Liberty
National
|
3,387
|
|
2,946
|
|
15
|
|
3,339
|
Family
Heritage
|
1,368
|
|
1,334
|
|
3
|
|
1,323
|
|
|
(1)
|
The quarterly average
producing agent count is based on the actual count at the
beginning
and end of each week during the period.
|
INVESTMENTS
|
|
Management uses excess
investment income as the measure to evaluate the performance of the
investment segment. It is defined as net
investment income less the required interest attributable to policy
liabilities. We also view excess investment income per diluted
common
share as an important and useful measure to evaluate performance of
the investment segment, since it takes into consideration our
stock
repurchase program.
|
|
The following table
summarizes Globe Life's investment income, excess investment
income, and excess investment income per diluted
common share.
|
|
Excess Investment
Income
|
|
Quarter
Ended
|
|
December
31,
|
|
2023
|
|
2022
|
|
%
Chg.
|
Net investment
income
|
$
271,609
|
|
$
255,483
|
|
6
|
Interest on policy
liabilities(1)
|
(235,785)
|
|
(224,767)
|
|
5
|
Excess investment
income
|
$
35,824
|
|
$
30,716
|
|
17
|
Per share
|
$
0.38
|
|
$
0.31
|
|
23
|
|
|
(1)
|
Interest on policy
liabilities is a component of total policyholder benefits, a GAAP
measure. The amounts presented for 2022 have
been retrospectively adjusted to exclude the interest on deferred
acquisition costs due to the LDTI standard and the interest on
debt.
|
Net investment income increased 6.3%, and average invested
assets increased 3.7%. Required interest on policy liabilities
increased 4.9%, and average policy liabilities increased 4.5%.
GLOBE LIFE INC.
Earnings Release—Q4 2023
(Dollar amounts in thousands, except share and per
share data)
(Unaudited)
|
|
The composition of the
investment portfolio at book value at December 31, 2023 is as
follows:
|
|
Investment
Portfolio
|
|
As of
|
|
December 31,
2023
|
|
Amount
|
|
% of
Total
|
Fixed maturities at
fair value(1)
|
$ 17,870,206
|
|
91
|
Mortgage
loans
|
279,199
|
|
1
|
Policy loans
|
657,020
|
|
3
|
Other long-term
investments(2)
|
835,878
|
|
4
|
Short-term
investments
|
81,740
|
|
—
|
Total
|
$ 19,724,043
|
|
|
|
|
(1)
|
As of December 31,
2023, fixed maturities at amortized cost were $18.9 billion, net of
$7.1
million of allowance for credit losses.
|
(2)
|
Includes $796 million
of investments accounted for under the fair value option which
have
a cost of $763 million as of December 31, 2023.
|
Fixed maturities at
amortized cost, net of allowance for credit losses, by asset class
as of December 31, 2023 are as follows:
|
|
|
|
Fixed Maturity
Portfolio by Sector
|
|
|
As of
|
|
|
December 31,
2023
|
|
|
Investment
Grade
|
|
Below
Investment
Grade
|
|
Total
Amortized
Cost, net
|
|
Corporate
bonds
|
$
14,574,424
|
|
$
480,705
|
|
$
15,055,129
|
|
Municipals
|
3,296,305
|
|
—
|
|
3,296,305
|
|
Government, agencies
and GSEs
|
442,903
|
|
—
|
|
442,903
|
|
Collateralized debt
obligations
|
—
|
|
37,110
|
|
37,110
|
|
Other asset-backed
securities
|
74,656
|
|
11,696
|
|
86,352
|
|
Total
|
$
18,388,288
|
|
$
529,511
|
|
$
18,917,799
|
|
Below are fixed maturities available for sale by amortized cost,
allowance for credit losses, and fair value at December 31, 2023 and the corresponding amounts
of net unrealized gains and losses recognized in accumulated other
comprehensive income (loss).
As of
|
Amortized
Cost
|
|
Allowance for
Credit Losses
|
|
Net Unrealized
Gains
(Losses)
|
|
Fair
Value
|
December 31,
2023
|
$
18,924,914
|
|
$
(7,115)
|
|
$
(1,047,593)
|
|
$ 17,870,206
|
At amortized cost, net of allowance for credit losses, 97% of
fixed maturities (97% at fair value) were rated "investment grade."
The fixed maturity portfolio earned an annual taxable equivalent
effective yield of 5.23% during the fourth quarter of 2023,
compared with 5.18% in the year-ago quarter.
Globe Life is not a party to any credit default swaps and does
not participate in securities lending.
GLOBE LIFE INC.
Earnings Release—Q4 2023
(Dollar amounts in thousands, except share and per
share data)
(Unaudited)
|
|
Comparable information
for acquisitions of fixed maturity investments is as
follows:
|
|
Fixed Maturity
Acquisitions
|
|
Quarter
Ended
|
|
December
31,
|
|
2023
|
|
2022
|
Amount
|
$ 443,385
|
|
$ 238,845
|
Average annual
effective yield
|
6.6 %
|
|
6.1 %
|
Average
rating
|
BBB+
|
|
A
|
Average life (in years)
to:
|
|
|
|
Next call
|
20.3
|
|
16.5
|
Maturity
|
23.2
|
|
20.9
|
SHARE REPURCHASE:
During the quarter, the Company repurchased 660,170 shares of
Globe Life Inc. common stock at a total cost of $77 million and an average share price of
$117.02.
For the year ended December 31,
2023, the Company repurchased 3.4 million shares of Globe
Life Inc. common stock at a total cost of $380 million and an average share price of
$112.84.
LIQUIDITY/CAPITAL:
Globe Life's operations consist primarily of writing basic
protection life and supplemental health insurance policies which
generate strong and stable cash flows. These cash flows are not
impacted by volatile equity markets. Liquidity at the Parent
Company is sufficient to meet additional capital needs of the
insurance companies.
EARNINGS GUIDANCE FOR THE YEAR ENDING DECEMBER 31, 2024:
Globe Life projects net operating income between $11.30 to $11.80
per diluted common share for the year ending December 31, 2024.
NON-GAAP MEASURES:
In this news release, Globe Life includes non-GAAP measures to
enhance investors' understanding of management's view of the
business. The non-GAAP measures are not a substitute for GAAP, but
rather a supplement to increase transparency by providing broader
perspective. Globe Life's definitions of non-GAAP measures may
differ from other companies' definitions. More detailed financial
information, including various GAAP and non-GAAP measurements, is
located at https://investors.globelifeinsurance.com on the
Investors page under "Financial Reports and Other Financial
Information."
CAUTION REGARDING FORWARD-LOOKING STATEMENTS:
This press release may contain forward-looking statements within
the meaning of the federal securities laws. These prospective
statements reflect management's current expectations, but are not
guarantees of future performance. Whether or not actual results
differ materially from forward-looking statements may depend on
numerous foreseeable and unforeseeable events or developments,
which may be national in scope, related to the insurance industry
generally, or applicable to the Company specifically. Such events
or developments could include, but are not necessarily limited
to:
1) Economic and other conditions, including the continued impact
of inflation, geopolitical events, and the recent pandemic on the
U.S. economy, leading to unexpected changes in lapse rates and/or
sales of our policies, as well as levels of mortality, morbidity,
and utilization of health care services that differ from Globe
Life's assumptions;
2) Regulatory developments, including changes in accounting
standards or governmental regulations (particularly those impacting
taxes and changes to the Federal Medicare program that would affect
Medicare Supplement);
3) Market trends in the senior-aged health care industry that
provide alternatives to traditional Medicare (such as Health
Maintenance Organizations and other managed care or private plans)
and that could affect the sales of traditional Medicare Supplement
insurance;
4) Interest rate changes that affect product sales, financing
costs, and/or investment portfolio yield;
5) General economic, industry sector or individual debt issuers'
financial conditions (including developments and volatility arising
from geopolitical events, particularly in certain industries that
may compromise part of our investment portfolio) that may affect
the current market value of securities we own, or that may impair
an issuer's ability to make principal and/or interest payments due
on those securities;
6) Changes in the competitiveness of the Company's products and
pricing;
7) Litigation results;
8) Levels of administrative and operational efficiencies that
differ from our assumptions (including any reduction in
efficiencies resulting from increased costs arising from the impact
of higher than anticipated inflation);
9) The ability to obtain timely and appropriate premium rate
increases for health insurance policies from our regulators;
10) The customer response to new products and marketing
initiatives;
11) Reported amounts in the consolidated financial statements
which are based on management estimates and judgments which may
differ from the actual amounts ultimately realized;
12) Compromise by a malicious actor or other event that causes a
loss of secure data from, or inaccessibility to, our computer and
other information technology systems;
13) The severity, magnitude, and impact of natural or man-made
catastrophic events, including but not limited to pandemics,
tornadoes, hurricanes, earthquakes, war and terrorism, on our
operations and personnel, commercial activity and demand for our
products; and
14) Globe Life's ability to access the commercial paper and debt
markets, particularly if such markets become unpredictable or
unstable for a certain period.
Readers are also directed to consider other risks and
uncertainties described in other documents on file with the
Securities and Exchange Commission. Globe Life specifically
disclaims any obligation to update or revise any forward-looking
statement because of new information, future developments or
otherwise.
EARNINGS RELEASE CONFERENCE CALL WEBCAST:
Globe Life will provide a live audio webcast of its fourth
quarter 2023 earnings release conference call with financial
analysts at 11:00 am (Eastern)
tomorrow, February 8, 2024. Access to the live webcast and
replay will be available at
https://investors.globelifeinsurance.com on the Calls and
Meetings page, at the Conference Calls on the Web icon. Immediately
following this press release, supplemental financial reports will
be available before the conference call on the Investors page menu
of the Globe Life website at "Financial Reports."
APPENDIX
|
|
GLOBE LIFE
INC.
GAAP CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
|
|
Three Months
Ended
December
31,
|
|
Year
Ended
December
31,
|
|
2023
|
|
2022(3)
|
|
2023
|
|
2022(3)
|
Revenue:
|
|
|
|
|
|
|
|
Life
premium
|
$
794,815
|
|
$
762,929
|
|
$ 3,137,244
|
|
$ 3,027,824
|
Health
premium
|
335,857
|
|
326,020
|
|
1,318,773
|
|
1,282,417
|
Other
premium
|
—
|
|
—
|
|
—
|
|
1
|
Total
premium
|
1,130,672
|
|
1,088,949
|
|
4,456,017
|
|
4,310,242
|
Net investment
income
|
271,609
|
|
255,483
|
|
1,056,884
|
|
991,800
|
Realized gains
(losses)
|
13,287
|
|
(9,703)
|
|
(65,676)
|
|
(76,548)
|
Other
income
|
123
|
|
384
|
|
308
|
|
1,246
|
Total
revenue
|
1,415,691
|
|
1,335,113
|
|
5,447,533
|
|
5,226,740
|
|
|
|
|
|
|
|
|
Benefits and
expenses:
|
|
|
|
|
|
|
|
Life policyholder
benefits(1)
|
514,472
|
|
501,967
|
|
2,050,789
|
|
2,035,693
|
Health policyholder
benefits(2)
|
195,686
|
|
191,364
|
|
776,362
|
|
752,866
|
Other policyholder
benefits
|
9,612
|
|
8,947
|
|
37,100
|
|
36,875
|
Total policyholder
benefits
|
719,770
|
|
702,278
|
|
2,864,251
|
|
2,825,434
|
Amortization of
deferred acquisition costs
|
97,541
|
|
90,131
|
|
379,700
|
|
348,824
|
Commissions, premium
taxes, and non-deferred acquisition costs
|
144,234
|
|
129,532
|
|
559,167
|
|
506,022
|
Other operating
expense
|
91,759
|
|
91,804
|
|
347,833
|
|
353,954
|
Interest
expense
|
25,676
|
|
24,658
|
|
102,316
|
|
90,395
|
Total benefits and
expenses
|
1,078,980
|
|
1,038,403
|
|
4,253,267
|
|
4,124,629
|
|
|
|
|
|
|
|
|
Income before income
taxes
|
336,711
|
|
296,710
|
|
1,194,266
|
|
1,102,111
|
Income tax benefit
(expense)
|
(61,909)
|
|
(54,367)
|
|
(223,511)
|
|
(207,725)
|
Net
income
|
$
274,802
|
|
$
242,343
|
|
$
970,755
|
|
$
894,386
|
|
|
|
|
|
|
|
|
Basic net income per
common share
|
$
2.92
|
|
$
2.50
|
|
$
10.21
|
|
$
9.13
|
|
|
|
|
|
|
|
|
Diluted net income
per common share
|
$
2.88
|
|
$
2.46
|
|
$
10.07
|
|
$
9.04
|
|
|
(1)
|
Net of remeasurement
gain of $12.9 million for the three months ended December 31, 2023,
and a remeasurement gain of $1.9 million for the
same period in 2022. Net of remeasurement gain of $29.4 million for
the year ended December 31, 2023, and a remeasurement loss of
$47.4
million for the same period in 2022.
|
(2)
|
Net of remeasurement
gain of $3.5 million for the three months ended December 31, 2023,
and a remeasurement gain of $1.8 million for the
same period in 2022. Net of remeasurement gain of $11.8 million for
the year ended December 31, 2023, and a remeasurement gain of
$15.6
million for the same period in 2022.
|
(3)
|
The amounts presented
for 2022 have been retrospectively restated due to the adoption of
ASU 2018-12.
|
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SOURCE Globe Life Inc.