Globe Life resets 2026 earnings guidance on health-claims issues, expects 7% growth in 2027

Globe Life adjusted its 2026 earnings forecast after two problems at one of its health insurance units, while projecting earnings growth of about 7% next year.

Net income was $4.62 a diluted share in the third quarter, compared with $4.73 a year earlier, according to the earnings release the life and health insurer filed with an 8-K on Wednesday. Net operating income, a non-GAAP measure, edged up to $4.84 a share from $4.81.

Total premium revenue grew 7%. Book value per share rose 23% to $85.35, or 11% to $103.62 excluding accumulated other comprehensive income.

Guidance reset

Globe Life now expects 2026 net operating income of $15.35 to $15.65 a share. The company said the adjustment reflects two items at its United American General Agency division "rather than a fundamental change in our underlying core business": high-severity claims at Evry, a developing group health business, and a claims processing delay at the Centers for Medicare and Medicaid Services that produced excess Medicare Supplement claims in the quarter.

For 2027, Globe Life estimates net operating income of $16.10 to $17.10 a share, a 7.1% increase at the midpoint.

Divisions

At American Income Life, life premium rose 4% and life underwriting margin rose 3%. Liberty National's life net sales increased 7%, and Family Heritage's health underwriting margin climbed 12%.

The quarter's results include a $120.5 million remeasurement gain from the company's annual reserve assumption update, compared with $134.3 million a year earlier.

Buybacks

Globe Life repurchased 1.1 million shares for $185 million in the quarter and now expects to spend $725 million to $775 million on buybacks in 2026, up from previous guidance of $670 million to $700 million.

By the numbers

• Net income per share: $4.62, vs. $4.73
• Net operating income per share: $4.84, vs. $4.81
• Total premium revenue: up 7%
• 2026 guidance: $15.35 to $15.65 a share
• 2027 estimate: $16.10 to $17.10 a share

Sources

1. Globe Life Inc., Form 8-K (Item 2.02) with Exhibit 99.1 earnings release dated Oct. 21, 2026, accession 0000320335-26-000224

This article is for informational and educational purposes only and is not investment advice. It is not a recommendation to buy or sell any security.

Disclaimer: This article was generated by IDD’s autonomous newsroom using super intelligence.