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What's in the Cards for Globe Life This Earnings Season?
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Key Takeaways
GL anticipates life underwriting margins of 52-53% and health margins of 29-32%, aided by premium growth.
Net investment income is expected to reach $297 million, up 3.8% year over year, on higher earned yields.
Life and health assumption updates are projected at $110-$130M, while share buybacks could boost earnings.
Globe Life Inc. (GL - Free Report) is expected to register an improvement in both top and bottom lines when it reports third-quarter 2026 results on Oct. 21, after market close.
The Zacks Consensus Estimate for GL’s third-quarter revenues is pegged at $1.61 billion, indicating 5.9% growth from the year-ago reported figure.
The consensus estimate for earnings is pegged at $4.87 per share. The Zacks Consensus Estimate for GL’s third-quarter earnings has moved down 0.4% in the past 30 days. The estimate suggests a year-over-year increase of 1.2%.
What the Zacks Model Unveils
Our proven model predicts an earnings beat for Globe Life this time. This is because the stock has the right combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), which increases the chances of an earnings beat.
Earnings ESP: Globe Life has an Earnings ESP of +0.14%. This is because the Most Accurate Estimate of $4.88 is pegged higher than the Zacks Consensus Estimate of $4.87. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Zacks Rank: Globe Life currently carries a Zacks Rank #3.
Factors Likely to Shape Q3 Results of GL
Premium growth and lower policy obligations as a percent of premium are likely to have driven the life insurance segment’s underwriting margin. Given the estimated benefit from assumption updates in the third quarter, GL anticipates third-quarter life underwriting margin as a percent of premium to be in the range of 52% to 53%.
Higher premiums from strong growth in Medicare Supplement sales and the positive impact of higher premium rates on individual Medicare Supplement policies as a result of approved rate increases are likely to have driven the health segment’s underwriting margin. GL anticipates the third-quarter health underwriting margin as a percent of premium to be in the range of 29% to 32%.
Higher earned yields on fixed maturities, commercial mortgage loans and other long-term investments are expected to have aided net investment income. The Zacks Consensus Estimate for third-quarter 2026 net investment income is pegged at $297 million, indicating an increase of 3.8% from the year-ago reported quarter.
Insurance administrative expenses are likely to have increased owing to higher employee costs, which include salaries and other costs, in addition to higher information technology expenses.
Continued share buybacks are likely to have provided additional support to the bottom line.
GL anticipates third-quarter life and health assumption updates in the range of $110 million to $130 million, with the life assumption range update in the band of $90 million to $100 million and the health assumption update in the range of $20 million to $30 million.
Other Stocks to Consider
Here are some other finance stocks you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat:
RNR’s earnings beat estimates in each of the last four reported quarters.
Cincinnati Financial Corporation (CINF - Free Report) has an Earnings ESP of +13.87% and a Zacks Rank #2 at present. The Zacks Consensus Estimate for third-quarter 2026 earnings is pegged at $2.01, indicating a year-over-year decrease of 29.4%.
CINF’s earnings beat estimates in three of the last four reported quarters and missed in one.
Arch Capital Group Ltd. (ACGL - Free Report) has an Earnings ESP of +11.70% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for third-quarter 2026 earnings is pegged at $2.05, indicating a year-over-year decrease of 25.9%.
ACGL’s earnings beat estimates in each of the last four reported quarters.
Image: Bigstock
What's in the Cards for Globe Life This Earnings Season?
Key Takeaways
Globe Life Inc. (GL - Free Report) is expected to register an improvement in both top and bottom lines when it reports third-quarter 2026 results on Oct. 21, after market close.
The Zacks Consensus Estimate for GL’s third-quarter revenues is pegged at $1.61 billion, indicating 5.9% growth from the year-ago reported figure.
The consensus estimate for earnings is pegged at $4.87 per share. The Zacks Consensus Estimate for GL’s third-quarter earnings has moved down 0.4% in the past 30 days. The estimate suggests a year-over-year increase of 1.2%.
What the Zacks Model Unveils
Our proven model predicts an earnings beat for Globe Life this time. This is because the stock has the right combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), which increases the chances of an earnings beat.
Earnings ESP: Globe Life has an Earnings ESP of +0.14%. This is because the Most Accurate Estimate of $4.88 is pegged higher than the Zacks Consensus Estimate of $4.87. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Globe Life Inc. Price and EPS Surprise
Globe Life Inc. price-eps-surprise | Globe Life Inc. Quote
Zacks Rank: Globe Life currently carries a Zacks Rank #3.
Factors Likely to Shape Q3 Results of GL
Premium growth and lower policy obligations as a percent of premium are likely to have driven the life insurance segment’s underwriting margin. Given the estimated benefit from assumption updates in the third quarter, GL anticipates third-quarter life underwriting margin as a percent of premium to be in the range of 52% to 53%.
Higher premiums from strong growth in Medicare Supplement sales and the positive impact of higher premium rates on individual Medicare Supplement policies as a result of approved rate increases are likely to have driven the health segment’s underwriting margin. GL anticipates the third-quarter health underwriting margin as a percent of premium to be in the range of 29% to 32%.
Higher earned yields on fixed maturities, commercial mortgage loans and other long-term investments are expected to have aided net investment income. The Zacks Consensus Estimate for third-quarter 2026 net investment income is pegged at $297 million, indicating an increase of 3.8% from the year-ago reported quarter.
Insurance administrative expenses are likely to have increased owing to higher employee costs, which include salaries and other costs, in addition to higher information technology expenses.
Continued share buybacks are likely to have provided additional support to the bottom line.
GL anticipates third-quarter life and health assumption updates in the range of $110 million to $130 million, with the life assumption range update in the band of $90 million to $100 million and the health assumption update in the range of $20 million to $30 million.
Other Stocks to Consider
Here are some other finance stocks you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat:
RenaissanceRe Holdings Ltd. (RNR - Free Report) has an Earnings ESP of +9.02% and a Zacks Rank #2 at present. The Zacks Consensus Estimate for third-quarter 2026 earnings is pegged at $9.28, indicating a year-over-year decrease of 40.6%. You can see the complete list of today’s Zacks #1 Rank stocks here.
RNR’s earnings beat estimates in each of the last four reported quarters.
Cincinnati Financial Corporation (CINF - Free Report) has an Earnings ESP of +13.87% and a Zacks Rank #2 at present. The Zacks Consensus Estimate for third-quarter 2026 earnings is pegged at $2.01, indicating a year-over-year decrease of 29.4%.
CINF’s earnings beat estimates in three of the last four reported quarters and missed in one.
Arch Capital Group Ltd. (ACGL - Free Report) has an Earnings ESP of +11.70% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for third-quarter 2026 earnings is pegged at $2.05, indicating a year-over-year decrease of 25.9%.
ACGL’s earnings beat estimates in each of the last four reported quarters.