Best Smidcap Ideas: Life Is Still Good At Globe

研报英文原文证据摘录

Best Smidcap Ideas: Life Is Still Good At Globe

TD Cowen Globe Life

Global Research June 23, 2026

Business Model Supports Sustained Low-Double-Digit EPS Growth

GL is on track to achieve sustained low-double-digit EPS growth over time, supported by mid-

single-digit premium growth, growth in net investment income, and active share repurchases,

with expense leverage providing an additional tailwind.

Management reinforced this view during recent meetings post 1Q26 earnings, noting that

normalized EPS has grown at a roughly 11.5% annual rate over the past three years, excluding

one-time assumption updates.

While sustained low-double-digit growth would be modestly above the company's 8-9%

historical growth rate, the underlying business model supports this outlook (aided by recent

improvements in free cash flow and interest rates).

GL serves lower-middle and middle-income U.S. households, a large and often underserved

market where many life insurers have limited presence. Moreover, the company's predominantly

exclusive distribution model, with much of its sales through exclusive agents, reduces price

competition at the point of sale and has historically supported consistent mid-single-digit or

greater sales and premium growth.

Just as important, GL achieves this growth with below-peer underwriting risk, balance sheet

intensity and market sensitivity. On the life side, the company focuses on low face value, whole

life and term products, which carry less severity risk and require less reinsurance. On the

health side, GL's portfolio consists primarily of Medicare Supplement and supplemental health

products, which have historically generated relatively stable underwriting margins and can be

re-priced quickly.

Fundamentals Remain Favorable