Globe Life reports Q3 2024 results
Globe Life held its earnings call on Oct. 24, with key highlights including:
- At American Income Life, life premiums increased 7% year-over-year to $428 million, with life underwriting margin rising 22% to $221 million. In the third quarter of 2024, net life sales reached $97 million, up 19% from the previous year, driven primarily by strong growth in agent count. The average producing agent count for the third quarter was 12,031, marking a 10% increase from a year ago.
- At Liberty National, life premiums increased 6% year-over-year to $94 million, with the life underwriting margin rising 63% to $45 million. Net life sales grew by 1% to $24 million, while net health sales declined by 6% to $8 million. The average producing agent count for the third quarter was 3,794, up 14% from the previous year. “Despite the flat sales for the quarter, I am very pleased and optimistic with the trends at Liberty.” – Globe Life CEO James Darden.
- It’s worth noting that Liberty faced a challenging comparison this quarter, as the prior year saw a 31% increase in life sales and a 19% increase in health sales.
- At Family Heritage, health premiums rose 8% year-over-year to $108 million, while the health underwriting margin decreased by 4% to $34 million. Net health sales increased 16% to $29 million, attributed to growth in both agent count and productivity. The average producing agent count for the third quarter was 1,429, an 8% increase from the previous year. Recent efforts to prioritize recruiting and middle management development are driving agent count growth, positioning the agency for further expansion in 2025.
- In the direct-to-consumer division at Globe Life, life premiums declined by 1% from the prior year to $246 million, while the life underwriting margin grew 40% to $88 million. Net life sales reached $24 million, a 9% decrease from the previous year, primarily due to reduced customer inquiries following a strategic reduction in marketing spend on campaigns that did not align with profit objectives.
- The value of the direct-to-consumer business extends beyond direct sales, according to the CEO, providing significant support to the agency business through brand impressions and sales leads. Continued investments enhance lead generation, boosting agency sales.
- In 2025, the direct-to-consumer division is expected to generate over 750,000 leads for the three exclusive agencies, with contributions set to increase through steady growth in an omnichannel marketing approach for the Globe Life brand.
- At United American General Agency, health premiums rose 9% year-over-year to $150 million, driven by 23% growth in prior-year sales. Health underwriting margin reached $14 million, a $1 million decline from last year due to higher claim costs from increased utilization. Net health sales totaled $16 million, down 1% from the previous year.
- Net life sales for 2024 are expected to be as follows: at American Income, an increase of around 16%; Liberty National, an increase of around 4%; and direct-to-consumer, a decrease of around 8%.
