(Reuters) - Globe Life (NYSE:GL) reported a rise in fourth-quarter profit on Wednesday as the insurer benefited from stronger underwriting and better returns on investments. Insurance companies witness strong demand for their goods, independent of broader economic circumstances because their policies are often guaranteed by employers or mandated by the government. Globe Life's insurance underwriting income per share rose to $3.43 in the quarter from $3.18 a year earlier.
Investment income across the insurance sector has been lifted by the robust performance of fixed-income securities, which are delivering steady and strong returns during a high interest rate environment. Meanwhile, firming bets on a soft landing for the U.S. economy drove a rally across major Wall Street indexes at the end of 2023 helping investment portfolios.
The McKinney, Texas-based company said quarterly net investment income rose 6% to $271.61 million compared to the year-ago quarter.
Net operating income was at $2.80 per diluted share in the three months ending Dec. 31, compared with $2.55 last year.