Globe Life Earns $1.75 per Share

After the closing bell, Globe Life (GL) reported Q3 operating earnings of $1.75 per share. That matched Wall Street’s estimates.

Some highlights:

Net income as an ROE was 9.4% for the nine months ended September 30, 2020. Net operating income as an ROE excluding net unrealized gains on fixed maturities was 13.6%.
Life premiums increased over the year-ago quarter by 9% at the American Income Life Division and 8% at the Direct to Consumer Division.
Health premiums increased over the year-ago quarter by 8% at the Family Heritage Division.
Life net sales at the Direct to Consumer Division and American Income Life Division increased over the year-ago quarter by 50% and 14%, respectively.
Health underwriting margin increased over the year-ago quarter by 20%.
1.4 million shares of Globe Life Inc. common stock were repurchased during the quarter.

Regarding Covid, Globe Life said:

Over the past two quarters, the Company has seen a rise in life claims as result of the pandemic and a corresponding decrease in life underwriting margins. While the Company cannot precisely estimate the length or severity of COVID-19, we anticipate approximately $56 million in COVID-related life claims for the full year 2020. Despite the challenges created by the pandemic, the Company continues to effectively conduct business operations through its various distribution channels.

In August, Globe resumed its share repurchase program. During Q3, GL repurchased 1.4 million shares for a total cost of $118 million and an average share price of $81.79. This year, Globe has repurchased 3.1 million shares at a total cost of $257 million and an average share price of $83.74.

Globe Life sees full-year earnings of $6.84 to $7.00 per share. For 2021, GL expects earnings to range between $7.30 and $7.80 per share. Wall Street had been expecting $7.47 per share.

Posted by on October 21st, 2020 at 4:26 pm


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