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Globe Life (GL)
NYSE:GL
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Globe Life
(NYSE:GL)
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Rating:70Outperform
Price Target:
$152.00
▲(5.27% Upside)
Action:UpgradedDate:01/24/26
Overall score reflects solid financial performance and an attractive valuation (low P/E), supported by a generally positive earnings update with strong underwriting and earnings growth. This is tempered by mixed near-term technical signals and areas to watch in margins and free cash flow growth.
Positive Factors
High return on equity
A sustained ROE around 22% indicates Globe Life converts shareholder capital into profit efficiently. For an insurer, high ROE reflects profitable underwriting and investment returns, supporting book value growth and giving management flexibility to reinvest in distribution and reserves over the medium term.
Large exclusive agency force
A sizable, growing exclusive agent network is a durable competitive advantage in life insurance: it secures diversified distribution, improves customer acquisition and retention, and supports steady new business flows that underpin premium growth and margins across multiple years.
Rising underwriting margins
Material increases in underwriting margins signal durable improvements in pricing, product mix, or mortality experience. Higher underwriting margins enhance long-term earnings power for an insurance franchise and reduce sensitivity to investment income volatility when sustained by disciplined underwriting.
Negative Factors
Declining gross margin
A notable drop in gross margin suggests rising benefit costs, adverse product mix, or pricing pressure. For an insurer, persistent margin deterioration can erode underwriting profitability, require corrective pricing or reserve actions, and constrain the company’s ability to fund growth and capital returns over time.
Negative free cash flow growth
Declining free cash flow growth reduces internal funding for dividends, share repurchases, and new initiatives. Even with strong operating cash coverage, negative FCF growth signals potential emerging pressures on cash conversion or capital deployment, limiting financial flexibility in the medium term.
Direct-to-consumer premium weakness
Softness in the direct-to-consumer channel indicates vulnerability in a key acquisition pathway and less diversification of new business sources. If persistent, DTC weakness can slow scalable organic growth and increase reliance on agent recruiting or inorganic strategies to sustain premium expansion.
Globe Life (GL) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$11.43B
Dividend Yield0.74%
Average Volume (3M)487.54K
Price to Earnings (P/E)10.2
Beta (1Y)0.67
Revenue Growth3.73%
EPS Growth17.47%
CountryUS
Employees3,732
SectorFinancial
Sector Strength70
IndustryInsurance - Life
Share Statistics
EPS (TTM)3.39
Shares Outstanding79,605,800
10 Day Avg. Volume409,159
30 Day Avg. Volume487,539
Financial Highlights & Ratios
PEG Ratio0.50
Price to Book (P/B)1.76
Price to Sales (P/S)1.62
P/FCF Ratio7.03
Enterprise Value/Market Cap1.22
Enterprise Value/Revenue2.34
Enterprise Value/Gross Profit6.92
Enterprise Value/Ebitda8.91
Forecast
1Y Price Target
$176.67Price Target Upside22.36% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering6
EPS Forecast (FY)15.22
Revenue Forecast (FY)$6.36B
Globe Life Business Overview & Revenue Model
Company DescriptionGlobe Life Inc., through its subsidiaries, provides various life and supplemental health insurance products, and annuities to lower middle to middle income households in the United States. The company operates through four segments: Life Insurance, Supplemental Health Insurance, Annuities, and Investments. It offers whole life, term life, and other life insurance products; Medicare supplement and supplemental health insurance, such as critical illness and accident plans; and single-premium and flexible-premium deferred annuities. The company was formerly known as Torchmark Corporation and changed its name to Globe Life Inc. in August 2019. Globe Life Inc. was incorporated in 1979 and is headquartered in McKinney, Texas.
How the Company Makes MoneyGlobe Life generates revenue primarily through the sale of life insurance policies and related products. The company earns premiums from policyholders, which constitute a significant portion of its revenue. In addition to premiums, Globe Life also earns investment income from the assets it holds, which include bonds and other investment vehicles. A key revenue stream comes from the renewal of existing policies, as many customers maintain their coverage over time. The company has established partnerships with various agents and brokers who help sell its products, contributing to its earnings. Additionally, Globe Life benefits from its efficient underwriting processes and a strong focus on customer retention, which enhances its profitability.
Globe Life Key Performance Indicators (KPIs)
Any
Insurance Premium Revenue by Segment
Shows the distribution of premium income across different insurance segments, highlighting which areas drive the most revenue and indicating potential growth or risk in specific markets.
Shows the distribution of premium income across different insurance segments, highlighting which areas drive the most revenue and indicating potential growth or risk in specific markets.
Data provided by:
The Fly
The FlyGlobe Life Earnings Call Summary
Earnings Call Date:Feb 04, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 06, 2026
Earnings Call Sentiment Positive
The call highlights solid operational and financial momentum: year-over-year premium growth, improved life underwriting margins, agency sales strength (notably American Income, Family Heritage and United American), a successful DTC sales turnaround, raised 2026 guidance (net operating EPS and premium growth), active shareholder returns (large buybacks), and a strategic Bermuda reinsurance initiative to enhance future parent cash flow. Challenges include higher agent turnover at one major agency, elevated early lapses in internet-driven channels, a decline in excess investment income this quarter, interest-rate-driven unrealized bond losses ($1.2B), and some health-margin pressure and seasonality related to Medicare Supplement timing. Management provided detailed mitigation actions (retention initiatives, pricing/rate increases, conservative investment posture) and did not incorporate Bermuda dividend benefits into 2026 guidance. Overall the positives (growth, margins, guidance lift, capital returns and strategic initiatives) outweigh the identifiable operational and investment headwinds.Q4-2025 Updates
Positive Updates
Strong Quarterly and Full-Year Earnings
Q4 net income of $266M ($3.29/share) vs $255M ($3.01/share) a year ago; Q4 net operating income $274M ($3.39/share), up 8% vs prior-year operating EPS of $3.14. Full-year 2025 net operating income $14.52, $0.02 above prior midpoint guidance.
Premium Growth and Positive 2026 Guidance
Total premium revenue grew 5% in Q4 YoY. 2026 guidance expects total premium revenue growth of ~7%–8%, life premium growth 4%–4.5% and health premium growth 14%–16%.
Health and Life Underwriting Margin Improvements
Q4 life underwriting margin $350M, up 4% YoY. Q4 health underwriting margin $99M, up 9% YoY. Normalized full-year 2025 life underwriting margin improved to 41.0% of premium (from 39.7%).
Strong Distribution & Sales Momentum in Key Agencies
American Income: life premiums +6% to $457M, life underwriting margin +5% to $208M, net life sales +10% to $102M. Liberty National: life premiums +4%, net life sales +6%. Family Heritage: health premiums +10%, net health sales +15%, average producing agents +8%.
Direct-to-Consumer Sales Turnaround
Globe Life DTC life premiums ~flat at $244M while life underwriting margin rose 3% to $74M; net life sales +24% to $29M driven by new technology improving online conversion and lead-sharing with agencies.
United American Medicare Supplement Growth
United American health premiums +14% to $173M and net health sales $77M (up ~$47M YoY), driven by movement from Medicare Advantage to Medicare Supplement and approved premium rate increases.
Investment Portfolio and Yield Positioning
Invested assets $21.7B; fixed maturities $18.8B. Q4 fixed maturity yield 5.29% (up 2 bps YoY); recent fixed maturity purchases averaged ~6.23% yield. Management expects blended earned yield ~5.4%–5.5% for 2026 and plans $900M–$1.1B fixed maturity purchases plus $300M–$400M in commercial mortgage/partnerships.
Shareholder Returns and Parent Cash Flow
Repurchased 1.3M shares in Q4 for ~$170M; full-year 2025 repurchases 5.4M shares for $685M. Returned ~$770M to shareholders in 2025 (including ~$85M dividends). Parent excess cash flow ~ $620M in 2025 and forecast $625M–$675M in 2026; guidance anticipates $85M–$90M dividends and $535M–$585M buybacks in 2026.
Capital Positioning and Bermuda Reinsurance Initiative
Target consolidated RBC 300%–320%. Formed Globe Life Re Ltd. (Bermuda) and executed initial reinsurance (~$1.2B statutory reserves transferred); management expects Bermuda reinsurance to increase parent excess cash flow over time toward an incremental ~ $200M annually (not built into 2026).
Negative Updates
Higher Agent Turnover at American Income
Average producing agent count at American Income declined 2% to 11,699 in Q4; management noted more agent turnover than expected and is implementing retention initiatives to address the issue.
Elevated First-Year Lapses in DTC and Liberty National
First-year lapses picked up (notably in the internet-driven DTC channel and Liberty National). Management views current levels as fluctuations but will monitor; internet channel sales typically show higher lapses.
Investment Income Pressures and Lower Excess Investment Income
Excess investment income was $31M in Q4, down ~ $8M YoY. Net investment income was $281M (approximately flat YoY) and negatively impacted by lower average invested asset growth, lower earned yield on some short-term commercial mortgage/partnership investments, and higher cash balances held related to Bermuda transactions.
Unrealized Losses on Fixed Maturities (Interest Rate Driven)
Fixed maturity portfolio has a net unrealized loss position of $1.2B due to higher market rates vs book; management states intent to hold to maturity and is not currently concerned, but this is a mark-to-market adverse position.
Health Margin Volatility and Normalized Decline
Normalized health underwriting margin for full-year 2025 declined to 25.4% from 27.3% a year ago, reflecting higher claims experience and timing of rate increases at United American. Q1 2026 health margin expected to be lower due to phased-in rate increases and seasonally high claims.
United American Sales Expected to Moderate
After nearly doubling sales in 2025, United American projects flat sales for 2026, reflecting uncertain Medicare marketplace dynamics and potential normalization following an exceptional prior-year growth.
Parent Liquid Asset Level Low and Dependent on Subsidiary Dividends
Parent liquid assets decreased from ~$90M at the start of the year to ~$80M at year-end 2025, and projected to be $50M–$60M end-2026; excess cash flow depends on dividends from subsidiaries and regulatory approvals related to Bermuda reinsurance for future increases.
Company Guidance
Management guided 2026 net operating earnings per diluted share of $14.95–$15.65 (≈5% growth at the midpoint; normalized EPS growth ≈10%), with total premium revenue up ~7%–8% (life +4%–4.5%, health +14%–16%). Underwriting margins are expected to be 41.5%–44.5% for Life (with an anticipated Q3 assumption remeasurement gain of $50M–$100M lifting Q3 life margin to ~48%–52%) and 23%–27% for Health; administrative expenses are expected to be ~7.3% of premium. Investment guidance assumes ~$900M–$1.1B of fixed-maturity purchases at ~5.9%–6.0% and $300M–$400M of commercial mortgage loans/limited partnerships with 7%–9% expected cash returns, driving a blended earned yield of ~5.4%–5.5% (fixed-maturity yield ~5.3% for 2026); net investment income is expected to grow 3%–4%, required interest ≈4% and excess investment income relatively flat. Capital and liquidity guidance includes parent excess cash flow of ~$625M–$675M in 2026 (moving over time toward ~$200M annually from Bermuda reinsurance), planned shareholder distributions of $85M–$90M in dividends and $535M–$585M in share repurchases, year-end parent liquid assets of $50M–$60M, and a target consolidated RBC ratio of ~300%–320%.Globe Life Financial Statement Overview
Summary
Financials are solid overall: strong revenue growth and healthy profitability with strong ROE, supported by moderate leverage. Offsetting factors include a notable decline in gross margin and negative free cash flow growth, which warrant monitoring.Income Statement
Globe Life shows a strong revenue growth trajectory with a TTM revenue growth rate of 97.9%, indicating robust expansion. However, the gross profit margin has decreased from 42.8% in 2024 to 34.4% in TTM, suggesting increased costs or pricing pressures. The net profit margin remains healthy at 19.4%, reflecting good profitability. EBIT and EBITDA margins are stable, indicating efficient operations.75
Positive
Balance Sheet
The company's debt-to-equity ratio is stable around 0.51, indicating moderate leverage. Return on equity is strong at 22.1%, showcasing effective use of equity to generate profits. The equity ratio is not explicitly calculated, but the balance sheet reflects a solid equity base relative to assets, supporting financial stability.70
Positive
Cash Flow
Operating cash flow is strong, with a coverage ratio of 3.05, indicating good cash generation relative to net income. However, free cash flow growth is negative at -7.6% TTM, which could signal potential cash flow challenges. The free cash flow to net income ratio is high at 95.1%, suggesting efficient conversion of income to cash.65
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 5.94B | 5.78B | 5.45B | 5.23B | 5.12B | 4.74B |
| Gross Profit | 2.01B | 1.87B | 1.64B | 1.54B | 1.69B | 1.28B |
| EBITDA | 1.56B | 1.45B | 1.30B | 1.19B | 1.36B | 983.39M |
| Net Income | 1.15B | 1.07B | 970.75M | 894.39M | 1.03B | 731.77M |
Balance Sheet | ||||||
| Total Assets | 30.53B | 29.08B | 28.05B | 25.99B | 29.77B | 29.05B |
| Cash, Cash Equivalents and Short-Term Investments | 18.16B | 17.41B | 18.06B | 16.71B | 21.47B | 21.42B |
| Total Debt | 2.71B | 2.74B | 2.12B | 2.08B | 2.03B | 1.92B |
| Total Liabilities | 24.84B | 23.77B | 23.56B | 22.04B | 21.13B | 20.28B |
| Stockholders Equity | 5.69B | 5.31B | 4.49B | 3.95B | 8.64B | 8.77B |
Cash Flow | ||||||
| Free Cash Flow | 1.25B | 1.33B | 1.43B | 1.39B | 1.40B | 1.43B |
| Operating Cash Flow | 1.38B | 1.40B | 1.48B | 1.42B | 1.44B | 1.48B |
| Investing Cash Flow | -196.41M | -641.52M | -926.15M | -943.01M | -913.37M | -1.18B |
| Financing Cash Flow | -1.03B | -715.84M | -541.49M | -492.45M | -523.60M | -274.06M |
Globe Life Technical Analysis
Positive
144.39
Price Trends
140.93
Positive
137.50
Positive
133.38
Positive
Market Momentum
1.27
Positive
56.19
Neutral
48.90
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GL, the sentiment is Positive. The current price of 144.39 is above the 20-day moving average (MA) of 142.48, above the 50-day MA of 140.93, and above the 200-day MA of 133.38, indicating a bullish trend. The MACD of 1.27 indicates Positive momentum. The RSI at 56.19 is Neutral, neither overbought nor oversold. The STOCH value of 48.90 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GL.
Globe Life Risk Analysis
Globe Life disclosed 23 risk factors in its most recent earnings report. Globe Life reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Globe Life Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $3.88B | 8.60 | 6.05% | 2.91% | -4.58% | ― | |
72 Outperform | $8.29B | 11.34 | 31.86% | 1.59% | 5.63% | 67.39% | |
72 Outperform | $7.95B | -336.71 | 0.27% | 2.98% | 24.94% | ― | |
70 Outperform | $11.43B | 10.21 | ― | 0.74% | 3.73% | 17.47% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
63 Neutral | $7.95B | 7.17 | 12.27% | 3.93% | 35.76% | 636.97% | |
63 Neutral | $12.00B | 17.15 | 6.69% | 2.22% | 1.80% | -44.44% |
* Financial Sector Average
GL
Globe Life
144.39
22.67
18.62%
LNC
Lincoln National
39.90
4.28
12.03%
PRI
Primerica
261.22
-10.79
-3.97%
UNM
Unum Group
73.65
0.60
0.82%
JXN
Jackson Financial Incorporation
115.62
34.94
43.30%
FG
F&G Annuities & Life Inc
25.48
-14.36
-36.04%
Globe Life Corporate Events
Business Operations and Strategy
Globe Life Amends Executive Retirement Plan
Neutral
Nov 6, 2025
On November 5, 2025, Globe Life Inc. announced an amendment to its Supplemental Executive Retirement Plan (SERP). The amendment revises the early retirement reduction factor for benefits and provides conditions under which participants in the company’s Executive Severance Plan are deemed vested and eligible for retirement income during a change of control protection period.
The most recent analyst rating on (GL) stock is a Buy with a $148.00 price target. To see the full list of analyst forecasts on Globe Life stock, see the GL Stock Forecast page.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.