Globe Life Cuts Its 2026 Earnings Guidance to $15.35 to $15.65 a Share After Medicare Supplement and Evry Losses at United American, While Third-Quarter Operating Income Edges Up 1% Per Share

Globe Life Inc. released its third-quarter 2026 results on October 21, 2026, with a conference call the next day. Premium grew and earnings per share edged up, but the company lowered its guidance for 2026, pointing to two specific problems at its United American health business. This article reports the figures from the earnings release filed with the U.S. Securities and Exchange Commission. The release as reviewed does not contain executive quotes or dividend information, and this article does not supply either.

Earnings

Net income was $361.1 million, or $4.62 per diluted share, against $387.8 million, or $4.73, in the third quarter of 2025, a decline of about 2% per share. Net operating income, the non-GAAP measure that excludes certain items, was $378.8 million, or $4.84 per share, against $394.2 million, or $4.81, an increase of 1% per share. Dollar earnings fell about 4%, calculated here, while per-share figures rose because diluted shares fell to 78.2 million from 82.0 million. For the nine months, diluted earnings per share were $11.64 against $10.77.

Net income return on equity was 19.7% for the nine months against 21.9%, and net operating income return on equity excluding accumulated other comprehensive income was 15.9% against 16.6%. Legal proceedings reduced net income by $6.8 million, or $0.09 per share, against $2.0 million, or $0.02. The release gives no details of specific cases and lists litigation and regulatory actions only as a general risk.

Premium and underwriting

Total premium rose 7% to $1,311.4 million from $1,231.0 million. Life premium was $864.6 million, up 2%, and 66% of the total. Health premium was $446.9 million, up 16%, and 34% of the total.

Insurance underwriting income was $481.8 million, or $6.16 per share, against $503.1 million, or $6.13: down 4% in total but flat per share. Life underwriting margin was $458.2 million, or 53% of premium, against $481.6 million, or 57%. Health underwriting margin was $115.6 million, or 26% of premium, against $108.4 million, or 28%. Administrative expenses were $95.2 million against $89.8 million, and the ratio to premium was unchanged at 7.3%.

Distribution channels

American Income's life premium rose 4% to $470.4 million and its life margin rose 3% to $268.5 million, but producing agents fell 7% to 11,331 from 12,230, and life net sales were flat at $96.6 million. Liberty National's life premium rose 4% to $102.0 million and its sales rose 7%, but its life margin fell 27% to $51.0 million, which management attributed mainly to fluctuations in assumption updates. Its producing agents rose 9% to 4,187. Family Heritage's health premium rose 8% to $128.6 million and its health margin rose 12% to $56.8 million. Direct to Consumer's life premium was little changed at $243.1 million.

United American, the problem unit

United American's health premium rose 29% to $219.3 million, and net sales nearly doubled, rising 95% to $47.7 million. Its health margin, though, was a loss of $6.4 million against income of $16.1 million. The company cited two items: an underwriting loss of roughly $16 million at Evry, and about $7 million of excess prior-period Medicare Supplement claims tied to a claims-processing delay at the Centers for Medicare and Medicaid Services (CMS). Together these two items total about $23 million, calculated here, which is larger than the $22.5 million swing in the unit's margin, calculated here, suggesting that the rest of the unit earned about as much as it did a year earlier. The release does not explain what Evry is in the portion reviewed, so this article does not describe it.

Investments and capital

Net investment income was $295.9 million, up 3%. Excess investment income was $37.9 million, or $0.49 per share, against $36.9 million, or $0.45. The fixed maturity yield was 5.33% against 5.26%. New fixed maturity purchases were $832.5 million at a 6.4% yield. Total investments were $19.6 billion, with fixed maturities at 86% of the total and 97% of those investment grade. Net unrealised losses on fixed maturities in accumulated other comprehensive income were $2.69 billion. The company says it holds no credit default swaps and does not lend securities.

Shareholders' equity was $6.62 billion against $5.69 billion, and excluding accumulated other comprehensive income it was $8.04 billion against $7.66 billion. Book value per share was $85.35, up 23%, and $103.62 excluding accumulated other comprehensive income, up 11%.

Buybacks

Globe Life repurchased 1.1 million shares for $185 million at an average price of $175.61 in the quarter. It raised its 2026 repurchase guidance to $725 million to $775 million, from $670 million to $700 million.

Guidance

The company lowered 2026 net operating income guidance to $15.35 to $15.65 per share, and management attributed the cut to the two United American items, not to a change in the core business. That attribution is the company's own, and the release does not provide independent evidence of it. It set 2027 guidance at $16.10 to $17.10, which the release describes as a 7.1% increase at the midpoint.

Reading the results

The quarter shows growth in premium and agents in some channels, a decline in agent count at the largest life channel, a narrower life margin, and a health business whose growth came with a loss. Whether the guidance cut proves to be temporary depends on facts the release cannot settle, including how quickly the Medicare Supplement claims normalise. Anyone using the figures should read the full release, including the reconciliation of net operating income to net income.