Viceroy Research Issues New Warning on Globe Life Stocks

On Wednesday, Viceroy Research reiterated its concerns regarding Globe Life Inc. (NYSE: GL), reaffirming its previous suspicions about the company's operations. This report follows an earlier investigation by another short-seller, Fuzzy Panda, which alleged fraudulent activities within Globe Life.

Viceroy's investigation uncovered a series of red flags in Globe Life’s American Income Life Insurance Company (AIL) division. The research firm noted that as of early November 2024, numerous AIL agent offices had closed, properties were listed for lease, and agency phone numbers had been disconnected. Despite these closures, no official statement regarding the status of these agencies has come from Globe Life's management.

The research indicated that several major AIL agency headquarters were listed for lease. Furthermore, when Viceroy attempted to reach out to agencies using numbers provided on AIL's website, many calls resulted in disconnection tones or messages stating that the lines were no longer in service. This situation encompassed multiple large agencies' main offices as well.

Viceroy's findings are significant, as the disconnected agencies represent over 40% of AIL’s net sales in 2023. This widespread issue spans multiple states, and the fact that the agencies retain their licenses and appointments suggests that the problem may be due to federal action against AIL rather than isolated agency-level issues.

The report raises questions about the operational integrity of Globe Life’s AIL division, highlighting the potential impact on the company’s sales and overall business performance. The lack of response from Globe Life’s management to these observations amplifies the concerns expressed by Viceroy Research.