Globe Life Q4 Earnings Surpass Estimates on Higher Premium

Globe Life Inc.’s GL fourth-quarter 2024 net operating income of $3.14 per share beat the Zacks Consensus Estimate by 1.3%. The bottom line improved 12% year over year, primarily driven by higher excess investment income and insurance underwriting income.See the Zacks Earnings Calendar to stay ahead of market-making news.The company reported operating revenues of $1.4 billion, up 4.4% from the year-ago quarter. The improvement was driven by growth in life premium, health premium, net investment income, and other income. The top line missed the Zacks Consensus Estimate by 1%.The quarterly results reflected higher premiums at both the life and health segments, improved net sales and higher investment income. Higher expenses partially offset the upside.Globe Life Inc. Price, Consensus and EPS Surprise Globe Life Inc. price-consensus-eps-surprise-chart | Globe Life Inc. QuoteBehind the HeadlinesGlobe Life reported total premium revenues of $1.18 billion, up 4.5% year over year. This upside was primarily driven by higher premiums from Life and Health insurance.Net investment income increased 4% year over year to $282.4 million.Excess investment income, a measure of profitability, rose 7% year over year to $38.3 million.Total insurance underwriting income grew 3.1% year over year to $337.9 million. The increase was due to improved Life underwriting income.Administrative expenses increased 18.3% year over year to $91.4 million.Total benefits and expenses rose 7% year over year to $1.1 billion, primarily due to higher total policyholder benefits, amortization of deferred acquisition costs, commissions, premium taxes, and non-deferred acquisition costs, other operating expense and interest expense.Segmental ResultsPremium revenues at Life increased 4% year over year to $822.9 million, driven by higher premiums written by distribution channels like American Income and Liberty National Division. American Income grew 7% and Liberty National rose 5%.Net sales of $144.9 million increased 11% year over year. Underwriting margins improved 10% year over year to $336 million.Health insurance premium revenues rose 7% year over year to $358.3 million, primarily driven by higher premiums from United American, Family Heritage, Liberty National and Direct to Consumer. Net health sales increased 6% year over year to $73.6 million. Underwriting margins decreased 6.4% year over year to $91.2 million.Financial UpdateShareholders’ equity, excluding accumulated other comprehensive income (AOCI), as of Dec. 31, 2024, increased 1% year over year to $7.34 billion.As of Dec. 31, 2024, Globe Life reported book value per share, excluding AOCI, of $86.40, up 13.4% year over year.Net operating return on equity, excluding AOCI, was 15.1% for the 12 months ended Dec. 31, 2024, which expanded 40 basis points year over year.Share RepurchaseGlobe Life repurchased 0.33 million shares worth $36 million in the reported quarter.Full-Year HighlightsFull-year 2024 net operating income of $12.37 increased 16% year over year. Total operating revenues rose 5.2% from the year-ago quarter to $5.8 billion.  2025 ViewGL estimates net operating income in the range of $13.45-$14.05 per diluted common share for the year ending Dec. 31, 2025.Zacks RankGlobe Life currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Other Finance Sector ReleasesBread Financial Holdings’ BFH operating income of 41 cents per share for the fourth quarter of 2024 beat the Zacks Consensus Estimate of 33 cents. Shares gained 0.1% in the last trading session to reflect the overperformance. The bottom line plunged 54% year over year. The quarterly results reflected a dip in revenues but higher credit sales. Revenues decreased 9.2% year over year to $926 million. The top line missed the consensus estimate by 3.3%.Credit sales of $7.9 billion increased 1%, indicating new partner growth and stronger holiday sales. Average loans of $18.2 billion decreased 1%, due to lower full year credit sales and elevated gross losses. Our estimate for the same was $17.9 billion. Total interest income decreased 7.1% to $1.2 billion, in line with our estimate and the Zacks Consensus Estimate. Net interest margin contracted 180 basis points to 17.8%. The Zacks Consensus Estimate for the metric was 18.5%.Virtu Financial, Inc. VIRT reported fourth-quarter 2024 adjusted earnings per share of $1.14, which outpaced the Zacks Consensus Estimate by 32.6%. The bottom line jumped more than four-fold year over year. Adjusted net trading income improved more than 75% year over year to $457.7 million in the quarter under review. It beat the consensus estimate by 14.7%.Revenues from commissions, net and technology services amounted to $140.5 million, rising 22.8% year over year. The metric beat the consensus mark and our model estimate of $127.4 million. Adjusted EBITDA jumped to $283.5 million in the quarter under review from $99 million a year ago and surpassed our model estimate of $175.8 million. Adjusted EBITDA margin of 57.5% improved 2,400 basis points year over year.American Express Company AXP reported fourth-quarter 2024 earnings per share of $3.04, which beat the Zacks Consensus Estimate by a whisker. The bottom line climbed 16% year over year. Total revenues net of interest expense amounted to $17.2 billion, which also beat the Zacks Consensus Estimate by a whisker. The top line improved 8.7% year over year in the quarter under review.Network volumes of $464 billion rose 7% year over year in the fourth quarter, driven by higher consumer spending. The figure surpassed the Zacks Consensus Estimate of $458.7 billion. Total interest income of $6.1 billion increased 9% year over year but missed the consensus mark of $6.2 billion. Provision for credit losses declined 10% year over year to $1.3 billion due to a reduced net reserve build partially offset by a rise in net write-offs. Total expenses increased 11% year over year to $13.1 billion.7 Best Stocks for the Next 30 DaysJust released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.3% per year. So be sure to give these hand picked 7 your immediate attention. See them now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report American Express Company (AXP): Free Stock Analysis Report Virtu Financial, Inc. (VIRT): Free Stock Analysis Report Globe Life Inc. (GL): Free Stock Analysis Report Bread Financial Holdings, Inc. (BFH): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks