We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Globe Life (GL) Beats Q4 Earnings Estimates, Trims Guidance
Read MoreHide Full Article
Globe Life Inc.’s (GL - Free Report) fourth-quarter 2020 net operating income of $1.74 per share beat the Zacks Consensus Estimate by 1.2%. The bottom line improved 2.4% year over year, primarily driven by higher revenues. However, the upside was partially offset by lower underwriting margins, stemming from higher claims due to the COVID-19 pandemic and rising costs.
Behind the Headlines
Globe Life reported total premium revenues of $968.5 million, up 6.8% year over year. This upside was primarily driven by higher premiums from Life and Health insurance.
Net investment income increased 3.3% year over year to $235.1 million.
The company reported operating revenues of $1.2 billion, up 6.2% from the year-ago quarter. The improvement was driven by growth in Life and Health insurance premiums and higher net investment income. The top line also beat the Zacks Consensus Estimate by about 1.5%.
Excess investment income, a measure of profitability, decreased 2% year over year to $61.2 million.
Total insurance underwriting income dipped 2% year over year to $175.3 million. The decline was attributable to lower Life and Annuity underwriting income and higher administrative expenses.
Administrative expenses were up 3% year over year to $62.8 million.
Total benefits and expenses rose 7.6% year over year to $979 million, primarily due to increased policyholder benefits and health policyholder benefits.
Premium revenues at Life increased 7% year over year to $678.3 million, driven by higher premiums written by distribution channels like American Income, Direct to Consumer and Liberty National. American Income grew 10%, Direct to Consumer was up 7% and Liberty National increased 3%.
Life underwriting income fell 8% year over year to $163.7 million, attributable to about $27 million of COVID-related claims in the quarter. Net sales of $131.2 million improved 23% on a year-over-year basis.
Health insurance premium revenues rose 5% year over year to $290.2 million, primarily driven by higher premiums from United American, Family Heritage and American Income. Underwriting income of $71.8 million increased 18% year over year. Net health sales decreased 11% year over year to $57 million.
Underwriting margins declined 3.7% year over year to $2.2 million.
Financial Update
Adjusted shareholders’ equity as of Dec 31, 2020 increased 20.2% year over year to $8.8 billion.
Globe Life reported book value per share (excluding net unrealized gains on fixed maturities) of $53.12 as on Dec 31, 2020, up 10.1% year over year.
Operating return on equity (excluding net unrealized gains on fixed maturities) was 13.5% in 2020, reflecting a contraction of 100 basis points (bps) year over year.
Share Repurchase
Globe Life bought back 4.5 million shares worth $380 million in 2020.
2021 View Slashed
Globe Life anticipates net operating income per share for this year between $7.16 and $7.56, down from the previously expected range of $7.30 to $7.80.
American Express (AXP - Free Report) and Synchrony Financial (SYF - Free Report) beat the respective Zacks Consensus Estimate for fourth-quarter earnings.
An Upcoming Release
Virtu Financial (VIRT - Free Report) is set to report earnings on Feb 11. The Zacks Consensus Estimate for the same stands at 79 cents per share.
These Stocks Are Poised to Soar Past the Pandemic
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early. See the 5 high-tech stocks now>>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Globe Life (GL) Beats Q4 Earnings Estimates, Trims Guidance
Globe Life Inc.’s (GL - Free Report) fourth-quarter 2020 net operating income of $1.74 per share beat the Zacks Consensus Estimate by 1.2%. The bottom line improved 2.4% year over year, primarily driven by higher revenues. However, the upside was partially offset by lower underwriting margins, stemming from higher claims due to the COVID-19 pandemic and rising costs.
Behind the Headlines
Globe Life reported total premium revenues of $968.5 million, up 6.8% year over year. This upside was primarily driven by higher premiums from Life and Health insurance.
Net investment income increased 3.3% year over year to $235.1 million.
The company reported operating revenues of $1.2 billion, up 6.2% from the year-ago quarter. The improvement was driven by growth in Life and Health insurance premiums and higher net investment income. The top line also beat the Zacks Consensus Estimate by about 1.5%.
Excess investment income, a measure of profitability, decreased 2% year over year to $61.2 million.
Total insurance underwriting income dipped 2% year over year to $175.3 million. The decline was attributable to lower Life and Annuity underwriting income and higher administrative expenses.
Administrative expenses were up 3% year over year to $62.8 million.
Total benefits and expenses rose 7.6% year over year to $979 million, primarily due to increased policyholder benefits and health policyholder benefits.
Globe Life Inc. Price, Consensus and EPS Surprise
Globe Life Inc. price-consensus-eps-surprise-chart | Globe Life Inc. Quote
Segmental Results
Premium revenues at Life increased 7% year over year to $678.3 million, driven by higher premiums written by distribution channels like American Income, Direct to Consumer and Liberty National. American Income grew 10%, Direct to Consumer was up 7% and Liberty National increased 3%.
Life underwriting income fell 8% year over year to $163.7 million, attributable to about $27 million of COVID-related claims in the quarter. Net sales of $131.2 million improved 23% on a year-over-year basis.
Health insurance premium revenues rose 5% year over year to $290.2 million, primarily driven by higher premiums from United American, Family Heritage and American Income. Underwriting income of $71.8 million increased 18% year over year. Net health sales decreased 11% year over year to $57 million.
Underwriting margins declined 3.7% year over year to $2.2 million.
Financial Update
Adjusted shareholders’ equity as of Dec 31, 2020 increased 20.2% year over year to $8.8 billion.
Globe Life reported book value per share (excluding net unrealized gains on fixed maturities) of $53.12 as on Dec 31, 2020, up 10.1% year over year.
Operating return on equity (excluding net unrealized gains on fixed maturities) was 13.5% in 2020, reflecting a contraction of 100 basis points (bps) year over year.
Share Repurchase
Globe Life bought back 4.5 million shares worth $380 million in 2020.
2021 View Slashed
Globe Life anticipates net operating income per share for this year between $7.16 and $7.56, down from the previously expected range of $7.30 to $7.80.
Zacks Rank
Global Life currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Other Releases
American Express (AXP - Free Report) and Synchrony Financial (SYF - Free Report) beat the respective Zacks Consensus Estimate for fourth-quarter earnings.
An Upcoming Release
Virtu Financial (VIRT - Free Report) is set to report earnings on Feb 11. The Zacks Consensus Estimate for the same stands at 79 cents per share.
These Stocks Are Poised to Soar Past the Pandemic
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.
See the 5 high-tech stocks now>>