Globe Life – Q2 2024 10-Q Update

Author: Viceroy Research Published on: August 12, 2024 Published in: Globe Life NYSE:GL

August 12, 2024 – On August 7, 2024, Globe Life published its 10-Q for Q2 2024 which contains several damning admissions about the company’s conduct and unexplained changes in disclosure.

Globe Life management misled analysts and shareholders about the existence of an SEC investigation
- In its Q2 2024 10-Q, Globe Life finally disclosed that it received the first inquiry of the SEC investigation in April 2024, at least 2 weeks before management told JP Morgan it was not under investigation.
- The inquiries made by the SEC are no longer described as “informal, preliminary”, and the company is apparently subject to a formal investigation.
- Our analysis of Globe Life’s disclosures suggests the SEC has made at least 2 inquiries with the company.
The 10-Q also contains multiple other changes in disclosure, despite the company claiming that the recently-completed independent investigation by Wilmer Hale and FTI Consulting found no fault in its reporting.
No explanation is given for these changes.
- The company included a legal case last mentioned in its Q2 2022 10-Q, despite the last major event in the case occurring in Q1 2023.
- The company has changed the language around its performance metrics: net sales and first year collected premium.
Globe Life spent over 85% of the $370mm high end of its buyback program guidance for 2024 in just two months.
- Globe Life drew a total of $345m in liquidity from their FHLB funding; regardless of the original purpose for this liquidity draw, it was effectively used to finance the buyback.

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