Globe Life Inc. reported third-quarter 2026 net income of $4.62 per diluted common share, a decline from $4.73 in the same quarter last year, while net operating income rose slightly to $4.84 per share from $4.81. The divergence between the two metrics is driven by realized investment gains and other non-operating items that management excludes from its operating performance measure.
The company, headquartered in McKinney, Texas, posted total premium revenue growth of 7% for the three months ended September 30, 2026, compared to the prior-year period. Life insurance accounted for 80% of the company's insurance underwriting margin for the quarter, whereas health insurance made up the remaining 20%.
Segment-level performance showed mixed growth across divisions. At the American Income Life Division, life premium increased 4% and the life underwriting margin rose 3% compared to the year-ago quarter. The Liberty National Division saw life net sales grow by 7% and life premium increase by 4%, with the average producing agent count rising 9%. Family Heritage Division results were stronger in health metrics, with health underwriting margin up 12%, health premium up 8%, and health net sales up 5%.
A key factor influencing the quarter's financial statements was the annual update to reserve assumptions, which Globe Life conducts in the third quarter. This process resulted in a before-tax remeasurement gain of $120.5 million in the current period, split between a $96.4 million gain related to life insurance and a $24.1 million gain related to health insurance. In the comparable quarter of the previous year, assumption-related remeasurement gains totaled $134.3 million.
Net operating income as a return on equity (ROE) excluding accumulated other comprehensive income (AOCI) stood at 15.9% for the nine months ended September 30, 2026. Book value per share excluding AOCI was $103.62, an 11% increase over the year-ago quarter. Including AOCI, book value per share was $85.35, up 23% from the prior-year period.
During the quarter, Globe Life repurchased 1.1 million shares of its common stock at a total cost of $185 million. The company's weighted average diluted shares outstanding decreased to 78,225,000 from 82,015,000 in the prior-year quarter. Management notes that net operating income is a non-GAAP measure used to evaluate operating performance by excluding items such as realized investment gains and losses.