Globe Life (NYSE:GL) recently reported a surge in first-quarter profit, driven by strong investment returns and underwriting activities. The insurance industry, known for its resilience to economic downturns, continues to maintain a stable demand for policies, with steady corporate and government spending on insurance.

In the first quarter, Globe Life saw total premiums rise to $1.15 billion from $1.10 billion a year ago. The surge in the broader equity capital markets has also boosted investment income for insurers, as they diversify a portion of their cash across various asset classes.

Net investment income for Globe Life increased by approximately 10% to $282.6 million for the quarter. The company’s net operating income for the three months ended March 31 was reported at $2.78 per share, compared to $2.53 per share in the previous year’s quarter.

Globe Life has projected its operating income for the year to be in the range of $11.50 to $12.00 per share. Additionally, the insurer anticipates resuming share buybacks once the blackout period related to a potential acquisition concludes for the first quarter.

Despite these positive developments, earlier this month, Fuzzy Panda Research revealed a short position in Globe Life, alleging instances of insurance fraud. This caused Globe Life’s shares to plummet to their lowest level in over a decade. The company, however, refuted these claims, stating that the analysis by Fuzzy Panda Research contained inaccuracies and unfounded assertions.