What does life — required interest on policy reserves mean?

The interest cost associated with maintaining the reserves required to pay future insurance claims.

How do you interpret life — required interest on policy reserves?

An increase reflects a growing reserve base or changes in interest rate assumptions, impacting the net profitability of the insurance block.

How does life — required interest on policy reserves compare across companies?

Similar to 'interest credited to policyholder reserves' found in standard life insurance financial statements.

Globe Life GL Life — Required Interest On Policy Reserves

Discontinued — last reported Q1 '19

Similar metrics at other companies

UNMColonial Life — Liability for Future Policy Benefit, Expected Future Policy Benefit, Interest Expense

$61.9M+2.3%

PFGTerm Life Insurance — Liability For Future Policy Benefit Interest Expense

$18M+16.1%

FNFTraditional Life — Interest accrual

$12M-7.7%

PRUTerm Life — Interest Expense

$106M+1.0%

CRBGUniversal Life — Interest accrual

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CRBGLife Insurance — Interest accrual

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Other financials

Income statement

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Revenue$1.6B+5.3%

Net income$270.5M+6.3%

EPS (diluted)$3.39+12.6%

Balance sheet

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Cash & equivalents$255.2M+9.9%

Total debt$3.2B-1.3%

Total equity$6.1B+12.1%

Total assets$31.0B+4.2%

Cash flow

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Operating cash flow$420.9M-2.5%

CapEx$24.9M+112%

Free cash flow$396.0M-5.7%

Valuation

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Market cap$13.26B-0.4%

Enterprise value$16.24B-0.8%

P/E11.3×-1.2×

P/S2.2×-0.1×

Profitability

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Net margin19.4%+1.0pp

FCF margin20.2%-3.9pp

Returns & leverage

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Return on equity20.5%0.0pp

Debt / equity0.5×-0.1×

Where this comes from

Reported directly by Globe Life in its filing.

Tagged under the XBRL concept tmk:RequiredInterestOnPolicyReserves.

The official record: Globe Life’s 10-Q, filed May 7, 2019, on SEC EDGAR. View the filing →

Questions, answered.

What does life — required interest on policy reserves mean?: The interest cost associated with maintaining the reserves required to pay future insurance claims.
How do you interpret life — required interest on policy reserves?: An increase reflects a growing reserve base or changes in interest rate assumptions, impacting the net profitability of the insurance block.
How does life — required interest on policy reserves compare across companies?: Similar to 'interest credited to policyholder reserves' found in standard life insurance financial statements.