#United States #McKinney #Globe Life #American Income Life #Viceroy Research

Globe Life Inc. Responds Firmly to False Allegations

In a significant development on December 4, 2024, Globe Life Inc. issued a strong rebuttal to allegations made by Viceroy Research, which claimed that the company was facing operational issues due to its transition to a virtual business model. The report suggested that American Income Life (AIL), one of Globe Life’s subsidiaries, had an unstable presence in the market, citing concerns about agency operations and connectivity.

However, Globe Life stressed that these claims were unfounded and misleading. The transition to a virtual business model was initiated following the pandemic's onset, allowing AIL and its independent agency owners to adapt to new market conditions effectively. As a result, AIL's agent count has seen a remarkable increase, growing from 8,000 in March 2020 to over 12,000 by November 2024. This growth can be attributed to the flexibility offered by virtual operations, enabling agents to better serve clients without the burden of high overhead costs associated with physical offices.

The company emphasized that the ability to operate through both virtual and physical locations has been a significant advantage, allowing them to maintain a robust service presence throughout the country. Furthermore, Globe Life highlighted that they currently manage over 17 million life insurance policies, establishing their position as one of the leading insurance providers in the nation.

Globe Life categorically denied any irregularities in operations as stated by the short seller, claiming that each business mentioned in Viceroy's report was fully operational. The company openly addressed inaccuracies, particularly concerning claimed disconnected phone numbers associated with their independent agencies. These discrepancies were portrayed as an attempt to create a fabricated image of internal disorganization.

In its statement, Globe Life described the short seller's actions as opportunistic and deceptive, aimed at damaging the company's reputation while attempting to manipulate stock prices for profit. The company remains committed to its mission of protecting families and individuals, asserting its efficacy and commitment to quality service amidst the evolving landscape of the insurance industry.

Jennifer Haworth, Executive Vice President and Chief Marketing Officer at Globe Life, reaffirmed the company’s dedication to maintaining clarity and transparency with its stakeholders, while Stephen Mota, Senior Director of Investor Relations, emphasized their ongoing efforts to combat misinformation that could harm investor confidence.

As part of their response to the market, Globe Life is expected to enhance its communication strategy, ensuring all stakeholders understand the company's operational integrity and commitment to growth amidst challenges posed by opportunistic entities.

In conclusion, Globe Life Inc. stands firm in its operations and success as a robust life insurance provider, reinforcing its role in safeguarding the interests of millions of policyholders across the nation. Their ability to adapt and thrive in a challenging environment speaks volumes about their operational strategy and unwavering commitment to excellence in service.