# Globe Life Targets Up to $950M in Parent Excess Cash Flow for 2027

By John Kim

Canonical URL: https://www.tokenpost.com/news/business/39075
Published: 2026-10-23T15:05:09.000Z
Updated: 2026-10-23T15:05:09.000Z
Section: Business

> The company forecasts non-GAAP net operating income of $16.10 to $17.10 per diluted share, a 7.1% increase at the midpoint.

Globe Life set a 2027 parent excess cash flow target of as much as $950 million, outlining a potential source of capital for shareholder returns while tying access to subsidiary capital needs.

The insurer forecasts 2027 net operating income of $16.10 to $17.10 per diluted share. The company identifies the measure as non-GAAP and projects 7.1% growth at the midpoint of the range.

Chief Financial Officer Thomas Kalmbach gave the cash flow estimate during an Oct. 22 earnings call. The $850 million to $950 million projection includes expected dividends from U.S. and Bermuda subsidiaries, some of which are subject to regulatory approval.

Globe Life calculates parent excess cash flow primarily from cash received as subsidiary dividends, minus interest paid on debt. Kalmbach said the money could go toward dividends and share repurchases if the subsidiaries did not need it to maintain their capital levels. If the full amount were returned to shareholders, the cash conversion ratio would equal 70% to 75% of net operating income at the guidance midpoint.

The company’s 2027 outlook also calls for total premium revenue growth of 6% to 8%. At the midpoint, Globe Life projects life premium growth of 2% to 4% and health premium growth of 13% to 15%.

Globe Life reduced its 2026 net operating income guidance to $15.35 to $15.65 per share. The company cited high-severity claims at Evry and a Centers for Medicare & Medicaid Services claims-processing delay that contributed to excess Medicare Supplement claims in the third quarter.

For the quarter ended Sept. 30, net operating income was $378.838 million, compared with $394.220 million a year earlier. Per-share net operating income rose to $4.84 from $4.81. GAAP net income was $361.107 million, or $4.62 per diluted share, while total premium revenue reached $1.311 billion, up 7% year over year.