In a recently published report, Viceroy Research says that “something is seriously wrong” at Globe Life’s (GL) at American Income Life Insurance. “The evidence is everywhere. Empty offices, disconnected phones, furniture fire sales, and no word from management.” According to the report, several major AIL agencies appear to have shuttered their operations in early November 2024. “It should be obvious how having no physical office and no phone line might impact on a business model based on predatory cold-calling campaigns, fraudulent mass-marketing lead development, and high-pressure in-home sales pitches. In some regions like Pittsburgh AIL’s agency presence appears to have disappeared completely with no replacement. Globe Life has thus far failed to notify the market of these developments. We believe this is a egregious breach of GL’s continuous market disclosure responsibilities,” Viceroy adds, arguing that “Given the number and seriousness of the issues at Globe Life, the number of ongoing investigations, the morally reprehensible nature of their business, and their financial situation, we do not believe that a target price can be assigned and believe the company to be uninvestable.”
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Read More on GL:
- Globe Life refutes ‘false’ short seller report
- Globe Life Introduces Executive Severance Plan
- Globe Life board approved authorization to repurchase up to $1.8B of stock
- Globe Life price target raised to $132 from $115 at Evercore ISI
- Globe Life price target raised to $105 from $90 at Truist
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
