#United States #Financial Performance #McKinney #Insurance #Globe Life

Globe Life Inc. Reports Impressive Fourth Quarter 2025 Results

On February 4, 2026, Globe Life Inc. (NYSE: GL) announced its financial performance for the fourth quarter of 2025, marking a significant achievement for the company. The results reveal a net income of $3.29 per diluted common share, a notable increase compared to $3.01 reported for the same quarter the previous year.

Key Financial Highlights

In addition to the impressive quarterly earnings, the company's net operating income also rose to $3.39 per diluted common share, up from $3.14 year-over-year. For the entire year, Globe Life recorded a net income of $14.07 per diluted common share, which represents an increase from $11.94 in the prior year. Furthermore, net operating income for the year reached $14.52, a leap from $12.37 in 2024, exceeding the midpoint of previous projections.

The return on equity (ROE), a vital indicator of financial performance, stood at 20.9% for the twelve-month period ending December 31, 2025. Excluding accumulated other comprehensive income (AOCI), the ROE for net operating income was recorded at 16.0%. Both net income and net operating income increased by 8% for the year, highlighting the company's robust financial standing.

Division Performance

Looking into the divisions, notable growth was reported across various segments:

• - American Income Life Division: Life net sales rose by 10%, with a corresponding 6% increase in life premiums compared to the same quarter last year.
• - Liberty National Division: Life net sales and life premiums increased by 6% and 4%, respectively, with a 6% growth in the average producing agent count over the previous year.
• - Family Heritage Division: This segment witnessed a remarkable 15% increase in health net sales and a 10% increase in health premiums, along with an 8% rise in the average producing agent count.
• - Direct to Consumer Division: A significant 24% increase in life net sales was reported for this channel.
• - United American Division: Health net sales soared from $30 million to approximately $77 million compared to last year.

Shareholder Engagement and Return Strategies

In alignment with its commitment to shareholders, Globe Life repurchased 1.3 million shares of common stock during the quarter at an average cost of $134.44 per share. This strategic buyback is part of its ongoing efforts to enhance shareholder value, amounting to a total of $170 million for the quarter and approximately $685 million for the entire year.

Investment Income Insights

Examining investment performance, the company reported a quarter-end investment portfolio valued at approximately $20.47 billion. The ratio of administrative expenses against premium revenue indicated an improvement, decreasing from 7.7% in the previous year to 7.4% in the current quarter, suggesting better management of operational costs.

Management utilizes excess investment income, calculated as net investment income less policy liability interests, as a key measure for evaluating investment performance. The excess investment income per diluted common share was recorded at $0.38, down from $0.45 in the year-ago quarter.

Looking Ahead

As Globe Life approaches the new fiscal year, it projects net operating income within the range of $14.95 to $15.65 per diluted common share for 2026, marking an optimistic outlook as it prepares for potential growth amidst evolving market conditions. The company remains focused on leveraging its strong financials to navigate the competitive landscape while meeting the needs of its policyholders.

In conclusion, Globe Life Inc.'s fourth-quarter results reflect a solid financial foundation and a proactive strategy to enhance shareholder returns. The robust performance across its divisions showcases the company's commitment to delivering value and growth in a dynamic insurance market.