Growth across Globe Life Inc.’s life and health insurance divisions helped push quarterly earnings higher, with net income rising 38% to $4.73 per diluted share for the period ended Sept. 30, 2025.
The company’s underwriting income reached $503.1 million as both life and health margins improved over last year.
Net operating income was $4.81 per diluted share, up from $3.49 in the same quarter of 2024. Net income as a return on equity (ROE) for the nine months ended Sept. 30, 2025, was 21.9%, while net operating income as an ROE excluding accumulated other comprehensive income (AOCI) stood at 16.6%.
Total insurance premium revenue reached $1.23 billion for the quarter, compared with $1.17 billion a year earlier. Life premiums increased 3% to $844.5 million, while health premiums rose 9% to $386.5 million. Life insurance accounted for 82% of the company’s underwriting margin and 69% of total premium revenue. Health insurance contributed 18% of the underwriting margin and 31% of total premium revenue.
By division, the American Income Life and Liberty National units each recorded a 5% increase in life premiums. At Family Heritage, health net sales increased 13% and premiums were up 10%, while the average producing agent count rose 9% over the same quarter last year. The Direct to Consumer Division reported a 13% increase in life net sales.
Life underwriting margin increased 24% to $481.6 million, and health underwriting margin rose 25% to $108.4 million. At the segment level, American Income posted a life underwriting margin of $261.1 million, Liberty National $70.3 million, and Direct to Consumer $113.7 million. Family Heritage recorded $50.6 million in health underwriting margin, up 49% from a year earlier.
Net investment income totaled $286 million, nearly unchanged from $285 million last year and consistent with market estimates. The company’s investment portfolio remained largely investment grade, with 98% of fixed maturities rated within that range and an annual taxable equivalent effective yield of 5.26%.
During the quarter, Globe Life repurchased 840,242 shares of common stock at a total cost of $113 million, or an average price of $134.17 per share.
For the year ending December 31, 2025, Globe Life projects net operating income between $14.40 and $14.60 per diluted share and between $14.60 and $15.30 for 2026.
Do you think Globe Life’s performance in its life and health divisions can sustain its earnings momentum in upcoming quarters? Share your thoughts in the comments.
