Globe Life has become the first major, publicly traded life insurer to report earnings for the COVID-19-shadowed second quarter, and it posted a profit.
The McKinney, Texas-based company announced Wednesday that it earned $173 million for the quarter on $1.2 billion in revenue, compared with $187 million in net income on $1.3 billion in revenue for the second quarter of 2019.
Globe Life managed to earn more than $100 million even after COVID-19 forced it to shift most of its employees and agents to working at home, and even after the agents had to shift to selling coverage mainly through telephone- and web-based arrangements, rather than through in-person meetings.
“While the current environment continues to present challenges, Globe Life’s operations are being conducted successfully,” the company said in a comment on its performance that was included in the earnings announcement. “We continue to support our agents and serve our customers in an effective manner.”
The company focuses mainly on selling life insurance, supplemental health insurance products and Medicare plans to middle-income consumers.
New health insurance sales fell 23% between the second quarter of 2019 and the latest quarter, to $34 million, but life insurance sales increased 7%, to $64 million, and life insurance renewal lapse rates were down.
At the company’s American Income Life division, for example, the renewal year lapse rate fell to 1.95%, from 2.1% for the second quarter of 2019.