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August 15, 2025 • 4 min read
Globe Life Inc., a major provider of life and supplemental health insurance primarily for middle-income Americans, recently released its financial results for the second quarter of 2025. In this post, we'll delve into the numbers from their latest 10-Q filing with the SEC to understand the company's performance, breaking down its revenue sources and key operational segments.
For the first six months of 2025, Globe Life reported a net income of $507.3 million, a slight 1% dip from the $512.6 million earned during the same period last year. While total profit was nearly flat, diluted net income per share saw a healthy 10% jump to $6.07, up from $5.51 in 2024. This divergence highlights a key part of Globe Life's strategy, which we'll explore further.
To get a clearer picture of how Globe Life generates its revenue and where the money goes, the following flow diagram illustrates the company's income statement for the first half of 2025.
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Globe Life's business is organized around two core insurance products: life and health. The performance of these segments tells a story of steady growth in one area and margin pressure in another.
Life Insurance: This segment continues to be the bedrock of the company. Life premiums grew 3% to $1.67 billion in the first half of 2025. More impressively, the underwriting margin—what's left after paying policyholder benefits and acquisition costs—expanded by a robust 8% to $677.3 million. This indicates strong profitability and effective cost management within its largest business line. The American Income division remains the primary driver, accounting for 53% of all life premiums.
Health Insurance: The health segment, which offers products like Medicare supplements and critical illness coverage, saw faster top-line growth, with premiums rising 8% to $748 million. However, profitability tightened. The underwriting margin for health insurance fell 6% to $182.8 million. The filing shows that net policy obligations as a percentage of premium jumped from 51% to 55% year-over-year, suggesting that the costs to cover health claims are growing faster than the premiums collected.
So, how did earnings per share (EPS) grow by 10% when net income was slightly down? The answer lies in the company's aggressive capital return program.
In the first six months of 2025, Globe Life repurchased 3.3 million of its own shares for a total of $403 million, at an average price of $121.38 per share. By reducing the number of shares outstanding, the company spreads its earnings over a smaller base, which mathematically boosts the EPS figure. This long-standing practice signals management's confidence in the company's value and is a significant driver of shareholder returns.
On the investment side, Globe Life's "excess investment income," a company-defined metric representing net investment income minus the interest required for policy liabilities, decreased by 18% to $70.7 million. This reflects the complex interest rate environment that affects both investment yields and the calculated interest on the company's long-term obligations to policyholders.
The company's financial position remains solid. As of June 30, 2025, total debt stood at approximately $2.8 billion, with a strong liquidity position underscored by $488 million remaining available under its credit facility.
Globe Life's latest filing paints a picture of a stable and mature company navigating a mixed environment. The life insurance segment provides a powerful and profitable engine, while the growth in the health business is currently offset by rising claim costs—a common challenge across the health insurance industry. The company's disciplined share repurchase program continues to be a central pillar of its value proposition for investors. Moving forward, the key for Globe Life will be to manage the margin pressures in its health segment while continuing to leverage the strength and efficiency of its unique agency and direct-to-consumer distribution models.
Last updated: August 15, 2025