Globe Life

Methodology

Globe Life's direct-to-consumer life and supplemental health insurance business generates stable earnings from in-force policy premiums with predictable mortality and lapse rates. The company's direct marketing approach and middle-market focus create a differentiated distribution model. This calculation works well given the recurring premium revenue and actuarial predictability, though changes in claims experience or distribution costs can impact profitability.

Methodology

Globe Life typically commands low to moderate PEG ratios reflecting steady but unspectacular growth from policy sales in the direct insurance channel. The company's focus on middle-income households provides a defensible niche with limited competition. Compare to other life insurers to assess whether Globe Life's direct distribution model and operational efficiency justify its valuation relative to agent-based competitors.

Methodology

Globe Life pays a meaningful dividend with consistent growth reflecting the stable cash generation from its in-force insurance book. The company balances dividends with share repurchases as excess capital deployment. PEGY is relevant for income-oriented insurance investors, as the combination of yield and modest growth from new policy sales creates the total return profile for this niche life and health insurer.