Globe Life Inc.

Second-quarter reported net income was $288 million, or $3.65 per diluted share, versus $3.05 per share a year ago; net operating income was $285 million, or $3.61 per diluted share, versus $3.27 a year ago. Total premium revenue grew 7% year over year. Life premium revenue increased 3% to $861 million and life underwriting margin was $359 million, up 6%, while health premium revenue increased 16% to $437 million and health underwriting margin was $99 million, up 1%. Administrative expenses were $91 million, up about 6% year over year. Net investment income was $294 million, up 4%, and excess investment income was $38 million, up 10%. For 2026, management raised full-year net operating EPS guidance to $15.55 to $15.95. They also guided to third-quarter life underwriting margin of 52% to 53% and health underwriting margin of 29% to 32% due to anticipated assumption updates, and said the full-year normalized life underwriting margin should be 41% to 42%. Full-year share repurchases are expected to be $670 million to $700 million, with about $95 million in dividends.

Frank Svoboda framed the quarter as another example of Globe Life’s resilient model, emphasizing that the company has produced double-digit net operating income per share growth in 8 of the last 9 quarters. He stressed that the business is well positioned to benefit from AI both in operations and sales, because of its high-volume, transaction-driven nature. He also made clear that share repurchases remain the preferred use of excess capital unless a better strategic alternative appears, while saying the company will continue to look at M&A.

Tom Kalmbach focused on capital, liquidity, and guidance. He said the company repurchased about 1.1 million shares for $175 million in Q2 and returned about $200 million to shareholders including dividends; for full-year 2026, repurchases are expected to be $670 million to $700 million and dividends about $95 million. He noted the parent had about $110 million of liquid assets at quarter-end, expects to end the year at the top end of its $50 million to $60 million target range, and said the company amended its term loan to $450 million and extended its maturity to June 2029 while also extending the credit facility to June 2031. On the P&L, he highlighted a $110 million to $130 million third-quarter assumption-update benefit and said normalized EPS growth at the midpoint of guidance is 9% to 10%.

Analysts focused on three issues: DTC’s shift away from paid search, the pace and durability of buybacks, and the timeline for capital release from Bermuda. Management said DTC is being pressured by lower paid search volume and higher keyword costs, but Globe Life is adjusting by moving spend across platforms, testing AI-based search, and staying disciplined on margin. On buybacks, management said the higher share price does not change their willingness to repurchase stock, and they plan to pace repurchases roughly pro rata in the second half. On Bermuda, they said the third-quarter cession is meant to support new business capacity rather than create immediate 2026 capital benefit, with meaningful benefits expected in 2027 and over a 3-to-5-year period.