Globe Life Inc. (GL) stock surged 5.16% in pre-market trading on Friday following the release of its strong first-quarter 2025 earnings report. The life and health insurance company reported a 10% increase in net operating income, reaching $259 million or $3.07 per share, surpassing analysts' expectations.
The company's solid performance was driven by growth across its key business segments. Life insurance premium revenue increased by 3% to $830 million, while health insurance premium revenue grew by 8% to $370 million. Globe Life's management reaffirmed its full-year 2025 earnings guidance of $13.45 to $14.05 per diluted share, demonstrating confidence in the company's outlook despite some challenges in health underwriting margins.
Investors were particularly encouraged by Globe Life's positive trends in agent count growth and sales, especially in its American Income Life and Liberty National divisions. The company's effective capital management strategy, including the repurchase of approximately 1.5 million shares for $177 million during the quarter, further bolstered investor confidence. While Globe Life faces some headwinds, such as increased health claim costs and ongoing regulatory inquiries, the market's reaction suggests that investors are focusing on the company's overall strong performance and optimistic future prospects.
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