Globe Life Inc.

Good day and welcome to the first quarter 2022 earnings release conference call. Today's conference is being recorded. At this time, I would like to turn the conference over to Mr. Mike Majors, Executive Vice President, Administration and Investor Relations. Please go ahead, sir.

Thank you. Good morning, everyone. Joining the call today are Gary Coleman and Larry Hutchison, our co-chief executive officers, Frank Svoboda, our chief financial 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, 2021 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 discussion of these terms and reconciliations to GAAP measures. I will now turn the call over to Gary Coleman.

Thank you, Mike, and good morning, everyone. In the first quarter, net income was $164 million, or $1.64 per share, compared to $179 million, or $1.70 per share, a year ago. Net operating income for the quarter was $170 million, or $1.70 per share. an increase of 11% per share from a year ago. On a GAAP-reported basis, return on equity was 8.5%, and book value per share is $69.16. Excluding unrealized gains and losses on fixed maturities, return on equity was 11.5%, and book value per share is $59.65, up 10% from a year ago. In our life insurance operations, premium revenue increased 7% from a year ago to $755 million. Life underwriting margin was $150 million, up 10% from a year ago. The increase in margin is due primarily to increased premium. For the year, we expect life premium revenue to grow around 6%, and at the midpoint of our guidance, we expect underwriting margin to grow around 23%. due primarily to an expected decline in COVID-like claims. In health insurance, premium grew 8% to $317 million. And health underwriting margin grew 10% to $79 million. The increase in underwriting margin is due primarily to increased premium and improved claims experience. For the year, we expect health premium revenue to grow 6% to 7%, And at the midpoint of our guidance, we expect underwriting margin to grow around 5%. Administrative expenses were $73 million for the quarter, up 10% from a year ago. As a percentage of premium, administrative expenses were 6.8% compared to 6.6% a year ago. For the full year, we expect administrative expenses to grow 10% to 11%, and be around 6.9% or premium. That's due primarily to higher IT and information security costs, employee costs, a gradual increase in travel and facility costs, and the addition of the GloBlock benefits division. I will now turn the call over to Larry for his comments on the first quarter marketing operations.