Berkshire Hathaway Inc (BRK.B)

[gfp927z]

Bar, Those allegations against Globe Life do sound serious. The stock is staging a nice recovery, but still down by 1/3 or so. I guess the moral of the story is that when Buffett exits a stock completely, it's probably best to follow his lead. But there are a bunch of stocks that Buffett sold out of last year that I decided to keep for the longer term --> DHI, GL, MKL, MMC, JNJ, MDLZ, PG. So far only GL has blown up, but luckily only a small position. Still unnerving to watch though.


>>> Globe Life profit surges on strong underwriting, investment returns


Reuters

Apr 22, 2024


https://finance.yahoo.com/news/globe-life-profit-surges-strong-210636532.html


April 22 (Reuters) - Globe Life posted a rise in first-quarter profit on Monday as the insurer benefited from strong investment returns and underwriting activities.

The insurance industry, known for its resilience to economic downturns, sustains a stable demand for policies, with both corporate and government spending on insurance remaining steady.

Total premiums at Globe Life rose to $1.15 billion in the first quarter from $1.10 billion a year ago.

The surge in the broader equity capital markets on the other hand has enhanced investment income for insurers, who diversify a portion of their cash across various asset classes.

Globe Life's net investment income for the quarter increased about 10% to $282.6 million.

The company's net operating income for the three months ended March 31 came in at $2.78 per share, compared with $2.53 per share in the prior-year quarter.

Globe Life expects its operating income for the year to be between $11.50 to $12.00 per share. The insurer further expects to resume share buybacks once the blackout period related to a potential acquisition ends for the first quarter.

Earlier this month, Fuzzy Panda Research disclosed a short position in the company, citing numerous cases of insurance fraud, leading Globe Life's shares to drop to their lowest in over a decade.

Globe Life denied the allegations, saying "the short seller analysis by Fuzzy Panda Research mischaracterizes facts and uses unsubstantiated claims and conjecture to present an overall picture of Globe Life that is deliberately false."

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