Globe Life Inc.

Hello, and welcome to the Globe Life, Inc. third quarter earnings release call. My name is Jeanne, and I will be your coordinator for today's event. Please note, this call is being recorded. After the speaker's remarks, there will be a question and answer session. If you'd like to ask a question at that time, press star, followed by the number one on your telephone keypad. If you would like to withdraw your question, press star one again. I will now hand you over to your host, Stephen Moda, Senior Director of Investor Relations at to begin today's conference. Thank you.

Thank you. Good morning, everyone. Joining the call today are Frank Svoda and Matt Darden, our co-chief executive officers, Tom Kambach, 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 2024-10-K, any subsequent forms 10-Q on file with the SEC. Some of our comments may also contain on gap measures. Please see our earnings release and website for discussion of these terms and reconciliations to gap measures. I will now turn the call over to Frank.

Thank you, Stephen, and good morning, everyone. In the third quarter, net income was $388 million or $4.73 per share compared to $303 million or $3.44 per share a year ago. Net operating income for the quarter was $394 million or $4.81 per share, an increase of 38% over the $3.49 per share from a year ago. On a GAAP reported basis, Return on equity through September 30th is 21.9%, and book value per share is $69.52. Excluding Accumulated Other Comprehensive Income, or AOCI, return on equity is 16.6%, and book value per share as of September 30th is $93.63, up 12% from a year ago. Before I discuss the third quarter insurance operations, I would like to revisit the nature of the market we serve. As most of you know, we serve the lower middle to middle income market. This market is vastly underserved and has significant growth potential, providing us with a distinct competitive advantage. This advantage is protected due not only to our ability to efficiently reach this market through both exclusive and direct-to-consumer distribution channels, but also due to the tremendous amount of data and experience we possess, as we have been in the same market for over 60 years with essentially the same products. The basic protection life and health insurance products we offer are specifically designed to help provide financial security to consumers in this market. We continue to be proud to serve this market and are grateful for the opportunity to help working families protect their financial future. In our insurance operations, Total premium revenue in the third quarter grew 5% over the year-ago quarter. For the full year 2025, we expect total premium revenue to grow approximately 5% as well, which is slightly higher than in 2024 and consistent with our 10-year average growth rate. Life premium revenue for the third quarter increased 3% from the year-ago quarter to $844 million. Life underwriting margin was $482 million, up 24% from a year ago, driven by premium growth plus remeasurement gains due to good mortality experience, including the updating of both mortality and lapse assumptions. For the full year, we expect life premium revenue to grow between 3 and 3.5%. As a percentage of premium, we anticipate life underwriting margin to be between 44 and 46%. In health insurance, premium revenue grew 9% in the quarter to $387 million, and health underwriting margin was up 25% to $108 million due primarily to premium growth and remeasurement gains. For the year, we expect health premium revenue to grow in the range of 8 to 9% and anticipate health underwriting margin as a percent of premium to be between 25 and 27%. Administrative expenses were $90 million for the quarter, an increase of 1% over the third quarter of 2024. As a percent of premium, administrative expenses were 7.3%. For the year, we expect administrative expenses to be approximately 7.3% of premium, the same as in 2024. I will now turn the call over to Matt for his comments on the third quarter marketing operations.