Insurance holding company Globe Life (NYSE: GL) missed Wall Street’s revenue expectations in Q4 CY2025 as sales rose 4.1% year on year to $1.53 billion. Its non-GAAP profit of $3.39 per share was 1.3% below analysts’ consensus estimates.

Is now the time to buy GL? Find out in our full research report (it’s free for active Edge members).

StockStory’s Take

Globe Life’s Q4 performance was met with a positive market response, despite revenue and non-GAAP profit coming in slightly below Wall Street expectations. Management attributed the quarter’s growth to strong sales activity in the Medicare Supplement business, higher agent productivity, and continued margin discipline across both life and health segments. In particular, CEO Matt Darden highlighted improvements in technology for lead generation and conversion, as well as favorable mortality trends that drove underwriting margin gains. While there were some increases in agent turnover and seasonal claims volatility, management viewed these as manageable fluctuations within their long-term growth strategy.

Looking ahead, Globe Life’s guidance is shaped by expectations for continued premium growth within health insurance, especially as Medicare Supplement sales remain robust and premium rate increases are phased in. Management believes technology enhancements and agent retention initiatives will further improve sales productivity. CFO Tom Kalmbach noted, “We anticipate the blended earned yield to be approximately 5.4% to 5.5%,” and expects underwriting margins to strengthen as the effect of premium rate actions is realized throughout the year, especially in the second half. The company also pointed to ongoing investments in agent recruitment and digital marketing as drivers for future growth.

Key Insights from Management’s Remarks

Management emphasized that Q4 results were driven by robust Medicare Supplement sales, improved life underwriting margins, and operational efficiencies enabled by technology investments.

• Health segment momentum: Globe Life’s strongest growth came from its United American division, where Medicare Supplement product sales were boosted by a shift in consumer preference away from Medicare Advantage plans. Management cited regulatory and provider changes as tailwinds for their core offerings.

• Technology-driven productivity: The company credited recent technology initiatives for improving lead generation and conversion rates in both agency and direct-to-consumer channels. These tools helped offset higher agent turnover and contributed to higher per-agent sales.

• Margin improvement from favorable trends: Underwriting margins increased in both life and health insurance, supported by lower policy obligations due to favorable mortality and claims experience. Management expects these trends to continue, with policy obligations as a percent of premium declining year over year.

• Agent count fluctuations: While the average producing agent count declined slightly in American Income, sales per agent increased due to better productivity and higher conversion rates. New retention initiatives are being implemented to stabilize long-term agent growth.

• Investment portfolio discipline: The investment portfolio remained conservatively positioned, with limited exposure to high-risk assets. Management highlighted ongoing focus on higher-rated bonds and long-term asset durability to support stable returns.

Drivers of Future Performance

Globe Life expects future growth to be led by premium rate increases, robust Medicare Supplement sales, and continued operational investments.

• Medicare Supplement growth and mix: Management projects health premium revenue to grow 14% to 16%, led by Medicare Supplement sales and rate increases. However, this will result in a higher proportion of lower-margin business, which could put some pressure on overall health underwriting margins.

• Technology and agent productivity: Further investments in digital marketing and agent tools are expected to drive higher lead generation and conversion rates. Management views these enhancements as critical for sustaining long-term sales growth and improving retention, particularly in exclusive agency channels.

• Capital management and regulatory dynamics: The recently established Bermuda reinsurance affiliate is expected to provide incremental cash flow benefits in future years, contingent on regulatory approvals. Management continues to prioritize share repurchases and maintaining strong capital ratios, while monitoring potential regulatory or economic headwinds that could impact growth or returns.

Catalysts in Upcoming Quarters

In future quarters, the StockStory team will be watching (1) the pace of Medicare Supplement sales growth and the impact of premium rate increases, (2) the effectiveness of new agent retention initiatives and productivity enhancements, and (3) the progression of Bermuda reinsurance transactions and their contribution to excess cash flow. Continued monitoring of claim trends and regulatory developments in the Medicare market will also be critical markers for Globe Life’s execution.

Globe Life currently trades at $147.19, up from $144.82 just before the earnings. At this price, is it a buy or sell? The answer lies in our full research report (it’s free).

Now Could Be The Perfect Time To Invest In These Stocks

If your portfolio success hinges on just 4 stocks, your wealth is built on fragile ground. You have a small window to secure high-quality assets before the market widens and these prices disappear.

Don’t wait for the next volatility shock. Check out our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 244% over the last five years (as of June 30, 2025).

Stocks that have made our list include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.