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In its report, the short seller claimed it had uncovered “extensive allegations of insurance fraud ignored by management despite being obvious and reported hundreds of times.”
Fuzzy Panda alleges there were policies written for dead and fictitious people and forged signatures.
The firm also made allegations against Globe Life’s subsidiary American Income Life (AIL), which accounts for a significant percentage of total premiums total underwriting profits.
The short seller says sales agencies known to have committed insurance fraud accounted for more than $200m of AIL’s ALP.
GL’s stock is currently trading at $77.83, down 25.85% from Wednesday’s close of $104.93 per share.
