Globe Life Surpasses Expectations with 2024 Q4 Results, Anticipates Strong Growth in 2025
Globe Life, a leading provider of life and health insurance, has reported impressive results for its fourth quarter of 2024. In a conference call on February 6th, the company's leadership team shared key highlights from the quarter, including significant growth in premium revenue and underwriting margins.
Net income for the quarter came in at $255 million, or $3.01 per share, compared to $275 million, or $2.88 per share, a year ago. Net operating income for the quarter was $266 million, or $3.14 per share, an increase of 12% from a year ago.
In the life insurance segment, premium revenue increased by 4% to $823 million, while underwriting margin rose by 10% to $336 million. This growth was driven primarily by premium growth and lower overall policy obligations. For 2025, Globe Life expects life premium revenue to grow at the midpoint of its guidance range of 4.5% to 5%, with underwriting margin expected to be between 40% and 42% as a percentage of premium.
In contrast, health insurance premium revenue grew by 7% to $358 million, while underwriting margin declined by 6% to $91 million due primarily to higher claim costs at United American resulting from increased utilization. However, Globe Life expects health premium revenue to grow in the range of 7.5% to 8.5% for 2025, with underwriting margin expected to be between 25% and 27% as a percentage of premium.
The company's administrative expenses were $91 million for the quarter, primarily due to higher information technology costs, employee costs, and legal expenses. While expenses were higher than prior quarters, they were largely in line with expectations. For 2025, Globe Life expects administrative expenses to be approximately 7.4% of premium.
Within its marketing operations, American Income Life reported a 7% increase in life premiums to $433 million and a 9% rise in underwriting margin to $199 million. Net life sales at American Income Life grew by 22% for the quarter, driven primarily by increased productivity and agent count growth.
Liberty National also saw significant growth, with life premiums increasing by 5% to $94 million and underwriting margin rising by 8% to $34 million. Net life sales remained flat at $26 million, while net health sales declined by 5% to $9 million. The average producing agent count for the quarter grew by 11% from a year ago.
Family Heritage reported an 8% increase in health premiums to $111 million and a 12% rise in underwriting margin to $40 million, with net health sales growing by 6% to $27 million. The company's focus on recruiting and improved new agent retention contributed to the growth in agent count at Liberty National.
Globe Life's overall premium growth of 4.7% for 2024 exceeded expectations, demonstrating the resiliency of its business amidst a high inflationary period. The company anticipates this growth rate to accelerate and be even higher in 2025 due to continued focus on recruiting, improved new agent retention, and agency middle management growth.
