Insurer Globe Life beats Q3 revenue estimates; cuts FY forecast

Overview

• U.S. life and health insurer's Q3 revenue beat analyst expectations, premium revenue grew 7% yr/yr

• Net operating income per share rose slightly from prior year

• Company repurchased 1.1 mln shares for $185 mln during the quarter

Outlook

• Globe Life lowers 2026 net operating income guidance to $15.35-$15.65 per share due to two items impacting results at United American General Agency division

• Company expects 2027 net operating income per share of $16.10-$17.10

• Globe Life raises 2026 share repurchase target to $725 mln-$775 mln from $670 mln-$700 mln

Result Drivers

• PREMIUM REVENUE GROWTH - Co said total premium revenue rose 7% yr/yr, driven by increases in both life and health insurance premiums

• HEALTH SEGMENT - Co said health premium and underwriting margin rose, led by growth at the Family Heritage Division

• AGENT GROWTH - Liberty National Division saw a 9% increase in average producing agent count, supporting higher life net sales and premiums

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 10 "strong buy" or "buy", 5 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the life & health insurance peer group is "hold."

• Wall Street's median 12-month price target for Globe Life Inc. is $192.00, about 13.1% above its October 20 closing price of $169.72

• The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 11 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)