Globe Life Reports Surge in First-Quarter Profit Amid Allegations of Fraud
Globe Life (NYSE:GL) reported a surge in first-quarter profit driven by strong investment returns and underwriting activities. The insurance industry remains resilient with steady demand for policies, as seen in Globe Life’s rise in total premiums to $1.15 billion. Despite positive financial projections, the company faced allegations of insurance fraud by Fuzzy Panda Research, causing a temporary dip in share prices.
CFRA Adjusts Outlook on Globe Life Inc. Shares
CFRA has adjusted its outlook on Globe Life Inc. (NYSE: NYSE:GL) shares, reducing the price target while maintaining a Hold rating. The revised target price represents a valuation of 10.3 times the firm’s 2024 operating earnings per share (EPS) estimate of $11.50 and 9.6 times the 2025 operating EPS estimate of $12.25. The rationale behind the new price target is grounded in the expectation that Globe Life will achieve operating revenue growth of 4%-6% in 2024 and 3%-7% in 2025, projections slightly above the industry averages. However, concerns have been raised about potential sales decline due to inflationary pressures affecting the middle-income target market, as well as increased competition in the health insurance segment.