Globe Life Inc. — the company formerly known as Torchmark Corp. — says it increased the number of agents selling its products in the third quarter by changing agent pay.
Executives from the McKinney, Texas-based life insurer and insurance distributor talked about the company’s agent force Thursday, during a conference call the company held to go over its earnings with securities analysts.
Globe Life writes and sells life insurance and supplemental health products to middle-income consumers.
The company is reporting $202 million in net income for the third quarter on $1.1 billion in revenue, up from $179 million in net income on $1.1 billion in revenue for the third quarter of 2018.
Executives from Aflac Inc. reported last week that Aflac’s average weekly producer count has dropped, partly because the strong economy makes finding people willing to a take commission-based sales jobs difficult.
Here’s what happened to the number of exclusive agents in three Globe Life distribution channels:
- American Income Exclusive Agency: Increased 7%, to 7,578.
- Liberty National Exclusive Agency: Increased 10%, to 2,398.
- Family Heritage Exclusive Agency: Increased 5%, to 1,135.
“Sales growth was primarily driven by agent count growth,” said Larry Hutchison, Globe Life’s co-chief executive officer.
At American Income, for example, “we had strong recruiting and fewer terminations, and that was caused in part by the restructuring compensation.”
Overall recruiting is about 9%, Hutchison said.
Gary Coleman, the other co-CEO, denied that digital sales systems will have much effect on Globe Life’s business any time soon.
“We operate in an underserved market,” Coleman said. “Typically, we’re the only agent in a home. There’s not a competition from other agents, nor is there digital competition, in the sense that this is a need that’s filled. People aren’t looking to buy life insurance. You’re really explaining the need and people buy insurance if they understand the need. So, I think there will be a place for life insurance agents as we go forward.”
Links to Globe Life earnings resources are available here.
— Read Torchmark to Change Its Name to Globe Life, on ThinkAdvisor.