2024-02-08 16:05:26 ET
Globe Life Inc. (GL)
Q4 2023 Earnings Conference Call
February 08, 2024 11:00 AM ET
Company Participants
Stephen Mota – Senior Director of Investor Relations
Frank Svoboda – Co-Chief Executive Officer
Matt Darden – Co-Chief Executive Officer
Tom Kalmbach – Chief Financial Officer
Conference Call Participants
Jimmy Bhullar – JP Morgan
John Barnidge – Piper Sandler
Ryan Krueger – KBW
Suneet Kamath – Jefferies
Wilma Burdis – Raymond James
Tom Gallagher – Evercore ISI
Presentation
Operator
Hello, and welcome to Globe Life Inc’s Fourth Quarter 2023 Earnings Release. My name is Melissa, and I will be your operator for today’s call. Please note, this conference is being recorded. And for the duration of the call, your lines will be in a listen-only mode. However, you will have the opportunity to ask questions at the end of the presentation. [Operator Instructions]
I’ll now turn the call over to Stephen Mota, Senior Director of Investor Relations. Please go ahead.
Stephen Mota
Thank you. Good morning, everyone. Joining the call today are Frank Svoboda and Matt Darden, our Co-Chief Executive Officers; Tom Kalmbach, our Chief Financial Officer; Mike Majors, our Chief Strategy Officer; and Brian Mitchell, our General Counsel. Some of our comments or answers to your questions may contain forward-looking statements that are provided for general guidance purposes only. Accordingly, please refer to our earnings release, 2022 10-K and any subsequent Forms 10-Q on file with the SEC. Some of our comments may also contain non-GAAP measures. Please see our earnings release and website for discussions of these terms and reconciliations to GAAP measures.
I will now turn the call over to Frank.
Frank Svoboda
Thank you, Stephen, and good morning, everyone. In the fourth quarter, net income was $275 million, or $2.88 per share, compared to $242 million, or $2.46 per share a year ago. Net operating income for the quarter was $267 million, or $2.80 per share, an increase of 10% from a year ago. On a GAAP reported basis, return on equity through December 31st is 23.2%, and book value per share is $47.10. Excluding accumulated other comprehensive income, or AOCI, return on equity is 14.7%, and book value per share as of December 31st is $76.21, up 11% from a year ago.
In our life insurance operations, premium revenue for the fourth quarter increased 4% from the year ago quarter to $795 million. Life underwriting margin was $305 million, also up 4% from a year ago. In 2024, driven by strong premium growth in both our American Income and Liberty National divisions, we expect life premium revenue to grow between 4.5% and 5% at the midpoint of our guidance and life underwriting margin to grow between 7% and 7.5%. As a percent of premium, we anticipate life underwriting margin to be in the range of 38% to 40%. In health insurance, premium grew 3% to $336 million, and health underwriting margin was up 1% to $97 million. In 2024, we expect health premium revenue to grow 7% to 8%. At the midpoint of our guidance for the full year 2024, we expect health underwriting margin to grow between 5% and 6%, and as a percent of premium to be around 27% to 29%....
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Globe Life Inc. (GL) Q4 2023 Earnings Call Transcript