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Torchmark Corp. thrilled investors earlier this week by generating solid profits, and some profit growth, from writing and selling life and health products aimed at middle-income Americans.

(Related: What 4 Carriers Are Saying About Agents and Agent Comp)

The McKinney, Texas-based company reported $185 million in net income for the first quarter on $1.1 billion in revenue, up from $174 million in net income on $1.1 billion in revenue for the first quarter of 2018.

The company has three divisions with producing exclusive agents: Liberty National, American Income and Family Heritage Life.

The total number of exclusive producing agents increased 2%, to about 10,000.

One possible headwind for the company could be the rise of a Medicare for All system.

But Larry Hutchison, the company’s chief executive officer, told securities analysts Thursday, during a conference call, that the impact of such a shift would depend on the details.

“It could be an opportunity if we have Medicare for All and we have a Medicare system where co-pays and deductibles are covered by a Medicare-type insurance,” Hutchison said during the call.

Torchmark was the first life insurer to report first-quarter earings, and investors and securities analysts welcomed its results.

Nigel Dally and Bob Huang of Morgan Stanley sent out an email alert with the subject line “Off to a Solid Start for 2019.”

“The investment thesis for Torchmark revolves around its predictable earnings and solid capital management, which leads the company to trade at a premium relative to its more complex peers,” the Morgan Stanley analysts wrote in the alert.


Links to information about Torchmark’s latest results are available here.

A link to a recording of the earnings call is available here.

— Read Torchmark Buys Privately Held Insurer For $218.5M, on ThinkAdvisor.

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