Globe Life Inc. (GL) CEO Gary Coleman on Q1 2022 Results - Earnings Call Transcript

Globe Life Inc. (NYSE:GL) Q1 2022 Earnings Conference Call April 21, 2022 11:00 AM ET

Company Participants

Mike Majors - Executive Vice President, Administration and Investor Relations

Gary Coleman - Co-Chief Executive Officers

Larry Hutchison - Co-Chief Executive Officers

Frank Svoboda - Chief Financial Officer

Brian Mitchell - General Counsel

Conference Call Participants

Jimmy Bhullar - JPMorgan

Andrew Kligerman - Credit Suisse

Eric Bass - Autonomous Research

Ryan Krueger - KBW

John Barnidge - Piper Sandler

Operator

Good day, and welcome to the First Quarter 2022 Earnings Release Conference Call. Today's conference is being recorded.

At this time, I would like to turn the conference over to Mr. Mike Majors, Executive Vice President, Administration and Investor Relations. Please go ahead, sir.

Mike Majors

Thank you. Good morning, everyone. Joining the call today are Gary Coleman and Larry Hutchison, our Co-Chief Executive Officers; Frank Svoboda, our Chief Financial 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, 2021 10-K in any subsequent Forms 10-Q on file with the SEC. Some of our comments may also contain non-GAAP measures. Please see our earnings release and website for discussion of these terms and reconciliations to GAAP measures.

I will now turn the call over to Gary Coleman.

Gary Coleman

Thank you, Mike, and good morning, everyone. In the first quarter, net income was $164 million or $1.64 per share compared to $179 million or $1.70 per share a year ago. Net operating income for the quarter was $170 million or $1.70 per share, an increase of 11% per share from a year ago.

On a GAAP reported basis, return on equity was 8.5%, and book value per share is $69.16, excluding unrealized gains and losses on fixed maturities, return on equity was 11.5% and book value per share is $59.65, up 10% from a year ago.

In our life insurance operations, premium revenue increased 7% from a year ago to $755 million. Life underwriting margin was $150 million, up 10% from a year ago. The increase in margin is due primarily to increased premium.

For the year, we expect life premium revenue to grow around 6% and at the midpoint of our guidance, we expect underwriting margin to grow around 23% due primarily to an expected decline in COVID life claims.