Insurer Globe Life Q3 profit jumps on strong investment returns, premium growth
Oct 23 (Reuters) -Life insurer Globe Life's (GL.N) reported an 18% increase in third-quarter profit on Wednesday, driven by robust investment returns and higher premiums sending its shares up nearly 7% inextended trading
Elevated interest rates have boosted yields from bonds that insurers hold in their investment portfolios, while a strong economy and a rally in equities have also benefited their stock holdings.
Globe Life's net investment income climbed 7%. Its insurance premium revenue also rose 5% to $1.17 billion in the quarter.
The Texas-based companyranks among the top three losers in the S&P 500 Financial Index .SPSY this year, partly due to ongoing regulatory issues.
Last month, Globe Life announced it may face a lawsuit from the Equal Employment Opportunity Commission for alleged discrimination against six of its sales agents.
It also reported a financial extortion threat from an unidentified party over crucial data last week.
Although the company has not released further updates regarding the incident, it anticipates no material impact on its earnings.
Globe Life's profit rose to $303 million, or $3.44 per share, for the three months ended September 30, from $257.1 million, or $2.68 per share, a year earlier.
The company now projects annual net operating income between $12.20 and $12.40 per share, compared to its previous forecast of $11.80 to $12.10 per share.
Reporting by Vedant Vinayak Vichare and Atharva Singh in Bengaluru; Editing by Tasim Zahiid
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