(Reuters) – Globe Life (NYSE:) reported an increase in fourth-quarter profit on Wednesday because the insurer benefited from stronger underwriting and higher returns on investments. Insurance corporations witness robust demand for his or her items, unbiased of broader financial circumstances as a result of their insurance policies are sometimes assured by employers or mandated by the federal government. Globe Life’s insurance coverage underwriting revenue per share rose to $3.43 within the quarter from $3.18 a yr earlier.
Investment revenue throughout the insurance coverage sector has been lifted by the sturdy efficiency of fixed-income securities, that are delivering regular and robust returns throughout a excessive rate of interest atmosphere. Meanwhile, firming bets on a mushy touchdown for the U.S. financial system drove a rally throughout main Wall Street indexes on the finish of 2023 serving to investment portfolios.
The McKinney, Texas-based firm mentioned quarterly internet investment revenue rose 6% to $271.61 million in comparison with the year-ago quarter.
Net working revenue was at $2.80 per diluted share within the three months ending Dec. 31, in contrast with $2.55 final yr.