On Wednesday, Viceroy Research reiterated concerns regarding Globe Life Inc. (NYSE: NYSE:GL), echoing previous skepticism about the company's operations. The 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 at Globe Life's American Income Life Insurance (NS:LIFI) Company (AIL) division. The research firm observed numerous AIL agency offices that had closed as of early November 2024, with properties listed for lease and agency phone numbers disconnected. Despite these closures, there has been no formal communication from Globe Life management about the status of these agencies.
The research indicated that the headquarters of several large AIL agencies were listed as available for lease. Moreover, when Viceroy attempted to contact agencies through the numbers provided on AIL’s website, many calls resulted in disconnected tones or messages indicating that the lines were no longer in service. This included the primary offices of multiple major agencies.
Viceroy's findings are significant as the disconnected agencies represent more than 40% of AIL’s net sales in 2023. This widespread issue spans multiple states, and the retention of licenses and appointments by agents suggests that the problem may stem from federal action against AIL as a whole, 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 management to these observations adds to the concerns raised by Viceroy Research.
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