(Bloomberg) -- Globe Life Inc. shares fell after a short seller said its American Income Life unit appears to have shuttered several major offices.
Shares of Globe Life slid 2.4% to $106.82 at 2:52 p.m. in New York, after tumbling as much as 8.4% earlier Wednesday, after Viceroy Research published a report saying “something is seriously wrong” at AIL and that it has empty offices.
The insurer refuted the short seller report, saying that since the pandemic it had begun transitioning to a virtual business model.
“By enabling our agents to work virtually, providing work flexibility and eliminating overhead costs to better build their own businesses, AIL’s agent count increased from over 8,000 agents in March of 2020 to over 12,000 in November of 2024,” the firm said in a statement. “Once again, an opportunistic short seller has presented a false picture of AIL’s presence across the country.”
Viceroy said it confirmed some closures directly with former AIL agents and that offices located at the addresses of multiple large agencies were available for lease.
“These possible closures have occurred in multiple states, despite agents retaining their licenses and appointments,” Viceroy said in the report.
Globe Life has previously been targeted by Viceroy, which alleged earlier this year that the insurer engages in “fraudulent, dishonest and misleading” practices. Fuzzy Panda Research also took aim at Globe Life, claiming in April it had “uncovered extensive allegations of insurance fraud ignored by management.”
The life insurer completed its first review of the allegations from both short sellers in July. Piper Sandler Cos. analyst John Barnidge said the results were “without a doubt a positive” ahead of its earnings.
(Updates with Globe Life comment starting in third paragraph.)
©2024 Bloomberg L.P.