Globe Life raises annual earnings forecast after reporting margin increase in Q2

Overview

• U.S. life and health insurer's Q2 net income per share rose 20% yr/yr

• Total premium revenue for Q2 grew 7% from a year earlier

• Company repurchased 1.1 mln shares for $175 mln during the quarter

Outlook

• Globe Life raises full-year 2026 earnings guidance to $15.55-$15.95 per share

Result Drivers

• PREMIUM REVENUE GROWTH - Total premium revenue rose 7% yr/yr, with life premium up 3% and health premium up 16%

• UNDERWRITING MARGINS - Life and health underwriting margins increased, with Liberty National and Family Heritage divisions reporting double-digit margin growth

• AGENT COUNT - Average producing agent count increased 8% at Liberty National and 7% at Family Heritage, supporting higher sales

Company press release: ID:nPn7P3xXMa

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 11 "strong buy" or "buy", 4 "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 $192.50, about 4.4% above its July 21 closing price of $184.34

• The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 9 three months ago

Reuters Recommended Reads

• July 21 - Insurer Chubb posts higher second-quarter profit on strong underwriting business

• July 20 - W. R. Berkley second-quarter profit rises on strong underwriting

• July 21 - Amerisafe Q2 adjusted EPS misses estimates

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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.)