Insurer Globe Life Q3 profit jumps on strong investment returns, premium growth

Globe Life

23/10/2024 22:33

Oct 23 (Reuters) - Life insurer Globe Life's (GL.N)
reported an 18% increase in third-quarter profit on Wednesday,
driven by robust investment returns and higher premiums sending
its shares up nearly 7% in extended trading
    Elevated interest rates have boosted yields from bonds that
insurers hold in their investment portfolios, while a strong
economy and a rally in equities have also benefited their stock
holdings.
    Globe Life's net investment income climbed 7%. Its insurance
premium revenue also rose 5% to $1.17 billion in the quarter.
    The Texas-based company ranks among the top three losers in
the S&P 500 Financial Index  .SPSY  this year, partly due to
ongoing regulatory issues.
    Last month, Globe Life announced it may face a lawsuit from
the Equal Employment Opportunity Commission for alleged
discrimination against six of its sales agents.
        It also reported a financial extortion threat from an
unidentified party over crucial data last week.
  
    Although the company has not released further updates
regarding the incident, it anticipates no material impact on its
earnings.
    Globe Life's profit rose to $303 million, or $3.44 per
share, for the three months ended September 30, from $257.1
million, or $2.68 per share, a year earlier.
      The company now projects annual net operating income
between $12.20 and $12.40 per share, compared to its previous
forecast of $11.80 to $12.10 per share.


 (Reporting by Vedant Vinayak Vichare and Atharva Singh in
Bengaluru; Editing by Tasim Zahiid)
 ((Vedant.VinayakVichare@thomsonreuters.com;))