Globe Life posted fourth-quarter net income of $3.29 per diluted share, up from $3.01 in the same period last year, though the results fell short of Wall Street expectations as the insurer balances strong divisional performance against workforce challenges.
Net operating income for the quarter reached $3.39 per diluted share, compared with $3.14 a year earlier. However, the figure missed the consensus estimate of $3.44, while revenue of $1.53 billion came in below analyst forecasts despite a 4.1% year-on-year increase.
For the full year ended December 31, 2025, the McKinney, Texas-based insurer reported net income of $14.07 per diluted share, an increase from $11.94 in 2024. Full-year net operating income came in at $14.52 per diluted share, up from $12.37 the prior year.
Both net income and net operating income rose 8% for the year, with full-year net operating income exceeding the midpoint of prior guidance. Globe Life reported net income return on equity of 20.9% for the 12-month period.
The company's stock edged down 0.57% in premarket trading following the earnings release.
The American Income Life division recorded a 10% increase in life net sales and a 6% rise in life premiums compared with the fourth quarter of 2024, though its average producing agent count fell 2% from the previous year.
The Liberty National division saw life net sales grow 6% and life premiums increase 4%, with its average producing agent count expanding 6% year over year.
The Family Heritage division posted a 15% increase in health net sales and a 10% gain in premiums over the year-ago quarter, while its agent count grew 8%.
Globe Life's direct to consumer division reported a 24% jump in life net sales. The United American division saw health net sales surge to approximately $77 million from $30 million in the fourth quarter of 2024, driven by a shift in consumer preference away from Medicare Advantage plans, management said.
CEO Matt Darden highlighted the company's workforce of more than 17,500 exclusive agents, with a target of surpassing 28,000 agents and $1.4 billion in annual sales by 2030. The insurer credited technology initiatives for improving lead generation and offsetting higher agent turnover.
Co-CEO Frank Svoboda pointed to growth opportunities, noting that studies indicate over 50% of Americans are underinsured.
The agent push comes as the broader insurance industry faces demographic headwinds. Research from ExamFX shows an estimated 47,100 new insurance sales agent positions are projected annually, with two-thirds of current agents aged 40 or older.
Globe Life projects net operating earnings for 2026 between $14.95 and $15.65 per share, with anticipated premium revenue growth of 7-8%.
The insurer repurchased 1.3 million shares during the quarter.
