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Globe Life (GL) Q2 Earnings Top Estimates, Premiums Rise Y/Y
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Globe Life Inc.’s (GL - Free Report) second-quarter 2023 net operating income of $2.61 per share beat the Zacks Consensus Estimate by 1.5%. The bottom line improved 2.7% year over year, primarily driven by higher excess investment income.
Globe Life reported total premium revenues of $1.1 billion, up 3% year over year. This upside was primarily driven by higher premiums from Life and Health insurance.
Net investment income increased 7% year over year to $261 million. The company reported operating revenues of $1.3 billion, up 3.8% from the year-ago quarter. The improvement was driven by growth in Life and Health insurance premiums and higher net investment income. The top line matched the Zacks Consensus Estimate.
Excess investment income, a measure of profitability, increased 30% year over year to $31.3 million.
Total insurance underwriting income decreased 2% year over year to $315 million. The decrease was due to lower Life and Annuity underwriting income. Administrative expenses were up 2% year over year to $75.4 million.
Total benefits and expenses increased 4.6% year over year to $1 billion, primarily due to higher total policyholder benefits, amortization of deferred acquisition costs, commissions, premium taxes and non-deferred acquisition costs and interest expense.
Segmental Results
Premium revenues at Life increased 3% year over year to $782 million, driven by higher premiums written by distribution channels like American Income, Direct to Consumer and Liberty National. American Income grew 5%, Direct to Consumer increased 1% and Liberty National gained 7%.
Net sales of $139.2 million remained flat year over year. Underwriting margins decreased 1% year over year to $296 million.
Health insurance premium revenues rose 3% year over year to $329.2 million, primarily driven by higher premiums from United American and Family Heritage. Net health sales increased 12% year over year to $49.4 million. Underwriting margins increased 1% year over year to $92.4 million.
Financial Update
Shareholders’ equity, excluding accumulated other comprehensive income (AOCI), as of Jun 30, 2023, increased 7.4% year over year to $6.92 billion.
As of Jun 30, 2023, Globe Life reported book value per share, excluding AOCI, of $72.09, up 9.8% year over year.
Operating return on equity, excluding AOCI, was 14.6% in the reported quarter, which contracted 100 basis points year over year.
Share Repurchase
Globe Life repurchased 0.7 million shares worth $83 million in the reported quarter.
2023 View
GL estimates net operating income between $10.37 per share and $10.57 per share for the year ending Dec 31, 2023.
American Express Company (AXP - Free Report) reported second-quarter 2023 earnings per share of $2.89, beating the Zacks Consensus Estimate by 3.2%. The bottom line increased 12.5% year over year. For the quarter under review, AXP’s total revenues net of interest expense increased 12.4% year over year to $15,054 million. However, the top line missed the Zacks Consensus Estimate by 2.3%. Due to higher spending, network volumes jumped 8% year over year to $426.6 billion in the second quarter. Total interest income was $4,775 million in the second quarter, up 71% year over year.
Total expenses of $11,122 million increased 7% year over year and came lower than our estimate of $11,632.5 million, primarily due to higher client engagement costs, stemming from increased network volumes and higher service costs.
Euronet Worldwide, Inc. (EEFT - Free Report) reported second-quarter 2023 adjusted earnings of $2.03 per share, which beat the Zacks Consensus Estimate by 1%. The bottom line climbed 17% year over year. Total revenues advanced 11% year over year and on a constant-currency basis to $939.1 million in the quarter under review. The top line beat the consensus mark by 1.8%. EEFT reported a net income of $1.65 per share in the second quarter, which surged 52.8% year over year. Adjusted operating income improved 18% year over year and on a constant-currency basis to $119.6 million but fell short of our estimate of $154.4 million.
Total operating expenses of $816.5 million escalated 10% year over year in the quarter under review and came higher than our estimate of $764 million. Adjusted EBITDA rose 13% year over year and on a constant-currency basis to $165.8 million but missed our estimate of $202.5 million.
Synchrony Financial (SYF - Free Report) reported second-quarter 2023 adjusted earnings per share of $1.32, which beat the Zacks Consensus Estimate of $1.22. However, the bottom line plunged 17.5% year over year. Net interest income of SYF improved 8.4% year over year to $4,120 million, beating the consensus mark by 0.6%.
Other income of Synchrony Financial amounted to $61 million, which declined 69.2% year over year in the second quarter. Total loan receivables grew 14.7% year over year to $94.8 billion. The purchase volume advanced 0.1% year over year to $47,276 million in the second quarter.
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Globe Life (GL) Q2 Earnings Top Estimates, Premiums Rise Y/Y
Globe Life Inc.’s (GL - Free Report) second-quarter 2023 net operating income of $2.61 per share beat the Zacks Consensus Estimate by 1.5%. The bottom line improved 2.7% year over year, primarily driven by higher excess investment income.
Globe Life Inc. Price, Consensus and EPS Surprise
Globe Life Inc. price-consensus-eps-surprise-chart | Globe Life Inc. Quote
Behind the Headlines
Globe Life reported total premium revenues of $1.1 billion, up 3% year over year. This upside was primarily driven by higher premiums from Life and Health insurance.
Net investment income increased 7% year over year to $261 million.
The company reported operating revenues of $1.3 billion, up 3.8% from the year-ago quarter. The improvement was driven by growth in Life and Health insurance premiums and higher net investment income. The top line matched the Zacks Consensus Estimate.
Excess investment income, a measure of profitability, increased 30% year over year to $31.3 million.
Total insurance underwriting income decreased 2% year over year to $315 million. The decrease was due to lower Life and Annuity underwriting income.
Administrative expenses were up 2% year over year to $75.4 million.
Total benefits and expenses increased 4.6% year over year to $1 billion, primarily due to higher total policyholder benefits, amortization of deferred acquisition costs, commissions, premium taxes and non-deferred acquisition costs and interest expense.
Segmental Results
Premium revenues at Life increased 3% year over year to $782 million, driven by higher premiums written by distribution channels like American Income, Direct to Consumer and Liberty National. American Income grew 5%, Direct to Consumer increased 1% and Liberty National gained 7%.
Net sales of $139.2 million remained flat year over year. Underwriting margins decreased 1% year over year to $296 million.
Health insurance premium revenues rose 3% year over year to $329.2 million, primarily driven by higher premiums from United American and Family Heritage. Net health sales increased 12% year over year to $49.4 million. Underwriting margins increased 1% year over year to $92.4 million.
Financial Update
Shareholders’ equity, excluding accumulated other comprehensive income (AOCI), as of Jun 30, 2023, increased 7.4% year over year to $6.92 billion.
As of Jun 30, 2023, Globe Life reported book value per share, excluding AOCI, of $72.09, up 9.8% year over year.
Operating return on equity, excluding AOCI, was 14.6% in the reported quarter, which contracted 100 basis points year over year.
Share Repurchase
Globe Life repurchased 0.7 million shares worth $83 million in the reported quarter.
2023 View
GL estimates net operating income between $10.37 per share and $10.57 per share for the year ending Dec 31, 2023.
Zacks Rank
Globe Life currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Finance Stocks
American Express Company (AXP - Free Report) reported second-quarter 2023 earnings per share of $2.89, beating the Zacks Consensus Estimate by 3.2%. The bottom line increased 12.5% year over year. For the quarter under review, AXP’s total revenues net of interest expense increased 12.4% year over year to $15,054 million. However, the top line missed the Zacks Consensus Estimate by 2.3%. Due to higher spending, network volumes jumped 8% year over year to $426.6 billion in the second quarter. Total interest income was $4,775 million in the second quarter, up 71% year over year.
Total expenses of $11,122 million increased 7% year over year and came lower than our estimate of $11,632.5 million, primarily due to higher client engagement costs, stemming from increased network volumes and higher service costs.
Euronet Worldwide, Inc. (EEFT - Free Report) reported second-quarter 2023 adjusted earnings of $2.03 per share, which beat the Zacks Consensus Estimate by 1%. The bottom line climbed 17% year over year. Total revenues advanced 11% year over year and on a constant-currency basis to $939.1 million in the quarter under review. The top line beat the consensus mark by 1.8%. EEFT reported a net income of $1.65 per share in the second quarter, which surged 52.8% year over year. Adjusted operating income improved 18% year over year and on a constant-currency basis to $119.6 million but fell short of our estimate of $154.4 million.
Total operating expenses of $816.5 million escalated 10% year over year in the quarter under review and came higher than our estimate of $764 million. Adjusted EBITDA rose 13% year over year and on a constant-currency basis to $165.8 million but missed our estimate of $202.5 million.
Synchrony Financial (SYF - Free Report) reported second-quarter 2023 adjusted earnings per share of $1.32, which beat the Zacks Consensus Estimate of $1.22. However, the bottom line plunged 17.5% year over year. Net interest income of SYF improved 8.4% year over year to $4,120 million, beating the consensus mark by 0.6%.
Other income of Synchrony Financial amounted to $61 million, which declined 69.2% year over year in the second quarter. Total loan receivables grew 14.7% year over year to $94.8 billion. The purchase volume advanced 0.1% year over year to $47,276 million in the second quarter.