Insurance company Globe Life (GL.N) reported an 18% rise in third-quarter earnings on Wednesday, thanks to solid investment returns and rising premiums, sending its shares up nearly 7% in trading prolonged
Rising interest rates have boosted the yields of bonds that insurers hold in their investment portfolios, while the strength of the economy and the rally in stocks have benefited their holdings.
Globe Life’s net investment income rose 7%. Insurance premium revenue also increased 5% to $1.17 billion in the quarter.
The Texan company is among the top three losers of the S&P 500 financial index SPF this year, partly due to ongoing regulatory issues.
Last month, Globe Life announced it may face (link) a lawsuit from the Equal Employment Opportunity Commission for alleged discrimination against six of its sales agents.
Last week it also reported a financial extortion threat from an unidentified individual for crucial data.
While the company has not released any further updates regarding the incident, it does not expect any material impact on earnings.
Globe Life’s profit rose to $303 million, or $3.44 per share, for the three months ended Sept. 30, compared with $257.1 million, or $2.68 per share, a year earlier Before.
The company now expects annual net operating revenue of $12.20 to $12.40 per share, compared to its previous guidance of $11.80 to $12.10 per share.
