# EDGAR Filing Document

**Accession Number:** 0000320335
**File Stem:** 0000320335-23-000002
**Filing Date:** 2023-2
**Character Count:** 40055
**Document Hash:** 6d459318fb85c9d57ec290bfe7bd02c0
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0000320335-23-000002.hdr.sgml**: 20230201

**ACCESSION NUMBER**: 0000320335-23-000002

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 15

**CONFORMED PERIOD OF REPORT**: 20230201

**ITEM INFORMATION**: Results of Operations and Financial Condition

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20230201

**DATE AS OF CHANGE**: 20230201

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** GLOBE LIFE INC.
- **CENTRAL INDEX KEY:** 0000320335
- **STANDARD INDUSTRIAL CLASSIFICATION:** LIFE INSURANCE [6311]
- **IRS NUMBER:** 630780404
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-08052
- **FILM NUMBER:** 23577079

**BUSINESS ADDRESS:**
- **STREET 1:** 3700 SOUTH STONEBRIDGE DRIVE
- **CITY:** MCKINNEY
- **STATE:** TX
- **ZIP:** 75070
- **BUSINESS PHONE:** 972-569-4000

**MAIL ADDRESS:**
- **STREET 1:** 3700 SOUTH STONEBRIDGE DRIVE
- **CITY:** MCKINNEY
- **STATE:** TX
- **ZIP:** 75070

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** TORCHMARK CORP
- **DATE OF NAME CHANGE:** 19920703

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** TORCHMARK CORP SAVINGS & INVESTMENT PLAN
- **DATE OF NAME CHANGE:** 19820825

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** LIBERTY NATIONAL INSURANCE HOLDING CO
- **DATE OF NAME CHANGE:** 19820701

?xml version="1.0" ? gl-20230201

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**WASHINGTON, D.C. 20549**

**FORM 8-K**

**CURRENT REPORT**

**Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934**

**Date of Report (Date of earliest event reported): February 1, 2023** 

**GLOBE LIFE INC.** 

**(Exact name of registrant as specified in its charter)**

---

| | | |
|:---|:---|:---|
| **Delaware** | **001-08052** | **63-0780404** |
| **(State or other jurisdiction**<br>**of incorporation)** | **(Commission**<br>**File No.)** | **(I.R.S. Employer**<br>**ID No.)** |

---

**3700 South Stonebridge Drive, McKinney, Texas 75070** 

**(Address of principal executive offices) (Zip Code)**

**Registrant's telephone number, including area code: (972) 569-4000** 

**N/A**

**(Former name or former address, if changed since last report)**

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a.-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

---

| | | |
|:---|:---|:---|
| **Title of each class** | **Trading Symbol(s)** | **Name of each exchange on which registered** |
| Common Stock, $1.00 par value per share | GL | New York Stock Exchange |
| 4.250% Junior Subordinated Debentures | GL PRD | New York Stock Exchange |

---

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter):

---

| | | |
|:---|:---|:---|
| | Emerging growth company | ☐ |
| If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. | If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. | ☐ |

---

------

<u>Item 2.02</u>&nbsp;&nbsp;&nbsp;&nbsp;<u>Results of Operations and Financial Condition.</u>

On February 1, 2023, Globe Life Inc. issued a press release announcing its fourth quarter 2022 financial results. A copy of the press release is incorporated herein by reference and is provided as Exhibit 99.1.

In accordance with General Instruction B.2 of Form 8-K, the information included or incorporated in this report (including Exhibit 99.1) shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934 (the "Exchange Act"), nor shall such information be deemed incorporated by reference in any filing under the Securities Act of 1933 or the Exchange Act, except as shall be set forth by specific reference in such filing.

<u>Item 9.01</u>&nbsp;&nbsp;&nbsp;&nbsp;<u>Financial Statement and Exhibits.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Financial Statements of businesses or funds acquired.

Not applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Pro forma financial information.

Not applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)Shell company transactions.

Not applicable

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)Exhibits.

(99.1) <u>[Globe Life Inc. Q4 FY 2022 Press Release dated February 1, 2023](q4fy2022earningsrelease.htm)</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(104) Cover Page Interactive Data File (embedded within the Inline XBRL document)

------

**SIGNATURES**

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

---

| | |
|:---|:---|
| Date: February 1, 2023 | **GLOBE LIFE INC.** |
| | /s/ Christopher T. Moore |
| | Christopher T. Moore<br>Corporate Senior Vice President, <br>Associate Counsel and Corporate Secretary |

---

## Exhibit 99.1

![globelifeheader.gif](globelifeheader.gif)

**GLOBE LIFE INC. REPORTS** 

**Fourth Quarter 2022 Results** 

**McKinney, TX, February 1, 2023**—Globe Life Inc. (NYSE: GL) reported today that for the quarter ended December 31, 2022, net income was $2.14 per diluted common share, compared with $1.76 per diluted common share for the year-ago quarter. Net operating income for the quarter was $2.24 per diluted common share, compared with $1.70 per diluted common share for the year-ago quarter.

Net income for the year ended December 31, 2022 was $7.47 per diluted common share, compared with $7.22 per diluted common share for the year-ago period. Net operating income for the year ended December 31, 2022 was $8.15 per diluted common share compared with $6.86 per diluted common share for the year-ago period.

**HIGHLIGHTS:**

●  Net income as an ROE was 12.3% for the twelve months ended December 31, 2022. Net operating income as an ROE excluding net unrealized gains or losses on fixed maturities was 13.4% for the same period.

●  Life premiums increased 5% at the American Income Life Division and 4% at the Liberty National Division over the year-ago quarter.

●  Health premiums increased 7% and average producing agent count increased 12% at the Family Heritage Division over the year-ago quarter.

●  Life net sales and health net sales increased over the year-ago quarter by 24% and 14%, respectively, at the Liberty National Division.

●  489,708 shares of Globe Life Inc. common stock were repurchased during the quarter.

**COVID-19 Update:** In the fourth quarter of 2022, the Company incurred approximately $5 million of COVID life claims as compared to $58 million for the same period last year. The Company finished the year ended December 31, 2022, with $49 million in COVID life claims, down from $140 million for the year ended December 31, 2021. For 2023, at the mid-point of our guidance, we anticipate approximately $45 million excess life claims from both COVID and non-COVID causes. We estimate total reported US deaths from COVID will be approximately 105,000 at the mid-point of our guidance.

Note: As used in the earnings release, "Globe Life," the "Company," "we," "our," and "us" refer to Globe Life Inc., a Delaware corporation incorporated in 1979, its subsidiaries and affiliates.

GL Q4 2022 Earnings Release

------

**GLOBE LIFE INC.**

**Earnings Release—Q4 2022**

(Dollar amounts in thousands, except share and per share data)

(Unaudited)

&nbsp;&nbsp;&nbsp;&nbsp;**RESULTS OF OPERATIONS**

Net operating income, a non-GAAP<sup>(1)</sup> financial measure, has been used consistently by Globe Life's management for many years to evaluate the operating performance of the Company, and is a measure commonly used in the life insurance industry. It differs from net income primarily because it excludes certain non-operating items such as realized investment gains and losses and certain significant and unusual items included in net income. Management believes an analysis of net operating income is important in understanding the profitability and operating trends of the Company's business. Net income is the most directly comparable GAAP measure.

The following table represents Globe Life's operating summary for the three months ended December 31, 2022 and 2021:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Operating Summary** | **Operating Summary** | **Operating Summary** | **Operating Summary** | **Operating Summary** | **Operating Summary** | **Operating Summary** |
| | **Per Share** | **Per Share** | | | | |
| | **Three Months Ended<br>December 31,** | **Three Months Ended<br>December 31,** | | **Three Months Ended<br>December 31,** | **Three Months Ended<br>December 31,** | |
|  | **2022** | **2021** | **%<br>Chg.** | **2022** | **2021** | **%<br>Chg.** |
| Insurance underwriting income<sup>(2)</sup> | $2.21 | $1.57 | 41 | $218370 | $159422 | 37 |
| Excess investment income<sup>(2)</sup> | 0.64 | 0.58 | 10 | 62826 | 58791 | 7 |
| Parent company expense | (0.03) | (0.02) |  | (3067) | (2302) |  |
| Income tax expense | (0.54) | (0.40) | 35 | (53534) | (40283) | 33 |
| Stock compensation benefit (expense), net of tax | (0.04) | (0.04) |  | (4057) | (3695) |  |
| **Net operating income** | **2.24** | **1.70** | 32 | **220538** | **171933** | 28 |
| **Reconciling items, net of tax:** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Realized gain (loss)—investments | (0.08) | 0.09 |  | (7665) | 9506 |  |
| &nbsp;&nbsp;&nbsp;Administrative settlements |  | (0.01) |  |  | (1047) |  |
| &nbsp;&nbsp;&nbsp;Non-operating expenses |  |  |  | (460) | (29) |  |
| &nbsp;&nbsp;&nbsp;Legal proceedings | (0.01) | (0.02) |  | (853) | (2410) |  |
| **Net income**<sup>(3)</sup> | $**2.14** | $**1.76** |  | $**211560** | $**177953** |  |
| **Weighted average diluted shares outstanding** | 98640 | 101343 |  |  |  |  |

---

(1)GAAP is defined as accounting principles generally accepted in the United States of America.

(2)Definitions included within this document.

(3)A GAAP-basis condensed consolidated statement of operations is included in the appendix of this report.

Note: Tables in this earnings release may not sum due to rounding.

GL Q4 2022 Earnings Release

------

**GLOBE LIFE INC.**

**Earnings Release—Q4 2022**

(Dollar amounts in thousands, except share and per share data)

(Unaudited)

The following table represents Globe Life's operating summary for the year ended December 31, 2022 and 2021:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Operating Summary** | **Operating Summary** | **Operating Summary** | **Operating Summary** | **Operating Summary** | **Operating Summary** | **Operating Summary** |
| | **Per Share** | **Per Share** | | | | |
| | **Year Ended December 31,** | **Year Ended December 31,** | | **Year Ended December 31,** | **Year Ended December 31,** | |
|  | **2022** | **2021** | **%<br>Chg.** | **2022** | **2021** | **%<br>Chg.** |
| Insurance underwriting income | $8.08 | $6.46 | 25 | $799389 | $666266 | 20 |
| Excess investment income | 2.41 | 2.31 | 4 | 238083 | 238528 |  |
| Parent company expense | (0.11) | (0.09) |  | (11156) | (9553) |  |
| Income tax expense | (1.99) | (1.64) | 21 | (197059) | (169426) | 16 |
| Stock compensation benefit (expense), net of tax | (0.23) | (0.18) |  | (22912) | (18318) |  |
| **Net operating income** | **8.15** | **6.86** | 19 | **806345** | **707497** | 14 |
| **Reconciling items, net of tax:** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Realized gain (loss)—investments | (0.61) | 0.53 |  | (60473) | 54220 |  |
| &nbsp;&nbsp;&nbsp;Realized gain (loss)—redemption of debt |  | (0.07) |  |  | (7358) |  |
| &nbsp;&nbsp;&nbsp;Administrative settlements |  | (0.01) |  |  | (1047) |  |
| &nbsp;&nbsp;&nbsp;Non-operating expenses | (0.04) | (0.02) |  | (4196) | (1923) |  |
| &nbsp;&nbsp;&nbsp;Legal proceedings | (0.02) | (0.06) |  | (1972) | (6430) |  |
| **Net income** | $**7.47** | $**7.22** |  | $**739704** | $**744959** |  |
| **Weighted average diluted shares outstanding** | 98985 | 103170 |  |  |  |  |

---

GL Q4 2022 Earnings Release

------

**GLOBE LIFE INC.**

**Earnings Release—Q4 2022**

(Dollar amounts in thousands, except share and per share data)

(Unaudited)

**MANAGEMENT VS. GAAP MEASURES**

Shareholders' equity, excluding net unrealized gains or losses on fixed maturities, and book value per share, excluding net unrealized gains or losses on fixed maturities, are non-GAAP measures that are utilized by management to view the business without the effect of unrealized gains or losses which are primarily attributable to fluctuation in interest rates associated with the available-for-sale portfolio. Management views the business in this manner because the Company does not intend to sell, nor is it likely that management will be required to sell, the fixed maturities prior to their maturity. It also creates more meaningful and easily identifiable trends, as we exclude fluctuations resulting from changes in interest rates. Shareholders' equity and book value per share are the most directly comparable GAAP measures.

---

| | | |
|:---|:---|:---|
| | **Year Ended<br>December 31,** | **Year Ended<br>December 31,** |
| | **2022** | **2021** |
| Net income as an ROE<sup>(1)</sup> | 12.3% | 8.8% |
| Net operating income as an ROE (excluding net unrealized gains or losses on fixed maturities) | 13.4% | 12.3% |
|  | **December 31,** | **December 31,** |
|  | **2022** | **2021** |
| Shareholders' equity | $4895861 | $8642806 |
| Impact of adjustment to exclude net unrealized gains or losses on fixed maturities | 1416428 | (2761870) |
| Shareholders' equity, excluding net unrealized gains or losses on fixed maturities | $6312289 | $5880936 |
| Book value per share | $49.65 | $85.97 |
| Impact of adjustment to exclude net unrealized gains or losses on fixed maturities | 14.36 | (27.47) |
| Book value per share, excluding net unrealized gains or losses on fixed maturities | $64.01 | $58.50 |

---

(1) Calculated using average shareholders' equity for the measurement period.

**INSURANCE OPERATIONS:** 

Life insurance accounted for 72% of the Company's insurance underwriting margin for the quarter and 70% of total premium revenue.

Health insurance accounted for 28% of the Company's insurance underwriting margin for the quarter and 30% of total premium revenue.

Net sales of life insurance decreased 2% for the quarter and net health sales decreased 3%.

The following table summarizes Globe Life's premium revenue by product type for the three months ended December 31, 2022 and 2021:

---

| | | | |
|:---|:---|:---|:---|
| **Insurance Premium Revenue** | **Insurance Premium Revenue** | **Insurance Premium Revenue** | **Insurance Premium Revenue** |
| | **Quarter Ended** | **Quarter Ended** | **Quarter Ended** |
| | **December 31, 2022** | **December 31, 2021** | **%<br>Chg.** |
| Life insurance | $753655 | $732997 | 3 |
| Health insurance | 323934 | 312774 | 4 |
| Annuity |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | $1077589 | $1045771 | 3 |

---

GL Q4 2022 Earnings Release

------

**GLOBE LIFE INC.**

**Earnings Release—Q4 2022**

(Dollar amounts in thousands, except share and per share data)

(Unaudited)

**INSURANCE UNDERWRITING INCOME**

Insurance underwriting margin is management's measure of profitability of the Company's life, health, and annuity segments' underwriting performance, and consists of premiums less policy obligations, commissions and other acquisition expenses. Insurance underwriting income is the sum of the insurance underwriting margins of the life, health, and annuity segments, plus other income, less administrative expenses. It excludes the investment segment, Parent Company expense, stock compensation expense and income taxes. Management believes this information helps provide a better understanding of the business and a more meaningful analysis of underwriting results by distribution channel. Insurance underwriting income, a non-GAAP measure, is a component of net operating income, which is reconciled to net income in the Results of Operations section above.

The following table summarizes Globe Life's insurance underwriting income by segment for the three months ended December 31, 2022 and 2021:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Insurance Underwriting Income** | **Insurance Underwriting Income** | **Insurance Underwriting Income** | **Insurance Underwriting Income** | **Insurance Underwriting Income** | **Insurance Underwriting Income** |
| | **Quarter Ended** | **Quarter Ended** | **Quarter Ended** | **Quarter Ended** | **Quarter Ended** |
| | **December 31, 2022** | **% of <br>Premium** | **December 31, 2021** | **% of <br>Premium** | **%<br>Chg.** |
| Insurance underwriting margins: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Life | $212387 | 28 | $146280 | 20 | 45 |
| &nbsp;&nbsp;&nbsp;&nbsp;Health | 81668 | 25 | 80683 | 26 | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;Annuity | 1958 |  | 2163 |  |  |
|  | 296013 |  | 229126 |  | 29 |
| Other income | 385 |  | 212 |  |  |
| Administrative expenses | (78028) |  | (69916) |  | 12 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Insurance underwriting income** | $218370 |  | $159422 |  | 37 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Per share** | $2.21 |  | $1.57 |  | 41 |

---

The ratio of administrative expenses to premium was 7.2%, compared with 6.7% for the year-ago quarter.

GL Q4 2022 Earnings Release

------

**GLOBE LIFE INC.**

**Earnings Release—Q4 2022**

(Dollar amounts in thousands, except share and per share data)

(Unaudited)

**LIFE INSURANCE RESULTS BY DISTRIBUTION CHANNEL** 

Our distribution channels consist of the following exclusive agencies: American Income Life Division (American Income), Liberty National Division (Liberty National) and Family Heritage Division (Family Heritage); an independent agency, United American Division (United American); and our Direct to Consumer Division (Direct to Consumer).

Total premium, underwriting margins, first-year collected premium and net sales by all distribution channels are shown at *<u>https://investors.globelifeinsurance.com</u>* at "Financial Reports and Other Financial Information."

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Life Underwriting Margin** | **Life Underwriting Margin** | **Life Underwriting Margin** | **Life Underwriting Margin** | **Life Underwriting Margin** | **Life Underwriting Margin** |
| | **Quarter Ended** | **Quarter Ended** | **Quarter Ended** | **Quarter Ended** | |
| | **December 31,** | **December 31,** | **December 31,** | **December 31,** | |
|  | **2022** | **2022** | **2021** | **2021** |  |
|  | **Amount** | **% of Premium** | **Amount** | **% of Premium** | **% Chg.** |
| American Income | $129563 | 34 | $101945 | 28 | 27 |
| Direct to Consumer | 38575 | 16 | 12000 | 5 | 221 |
| Liberty National | 20853 | 25 | 11997 | 15 | 74 |
| Other | 23396 | 45 | 20338 | 39 | 15 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | $212387 | 28 | $146280 | 20 | 45 |

---

---

| | | | |
|:---|:---|:---|:---|
| **Life Premium** | **Life Premium** | **Life Premium** | **Life Premium** |
| | **Quarter Ended** | **Quarter Ended** | |
| | **December 31,** | **December 31,** | |
|  | **2022** | **2021** | **%<br>Chg.** |
| American Income | $380713 | $363831 | 5 |
| Direct to Consumer | 238476 | 237415 |  |
| Liberty National | 82400 | 78963 | 4 |
| Other | 52066 | 52788 | (1) |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | $753655 | $732997 | 3 |

---

---

| | | | |
|:---|:---|:---|:---|
| **Life Net Sales**<sup>(1)</sup> | **Life Net Sales**<sup>(1)</sup> | **Life Net Sales**<sup>(1)</sup> | **Life Net Sales**<sup>(1)</sup> |
| | **Quarter Ended** | **Quarter Ended** | |
| | **December 31,** | **December 31,** | |
|  | **2022** | **2021** | **%<br>Chg.** |
| American Income | $69796 | $74007 | (6) |
| Direct to Consumer | 30676 | 33805 | (9) |
| Liberty National | 23252 | 18827 | 24 |
| Other | 2568 | 2694 | (5) |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | $126292 | $129333 | (2) |

---

(1)Net sales, a statistical performance measure, is calculated as annualized premium issued, net of cancellations in the first thirty days after issue, except in the case of Direct to Consumer, where net sales is annualized premium issued at the time the first full premium is paid after any introductory offer period has expired. Management considers net sales to be a better indicator of the rate of premium growth than annualized premium issued.

GL Q4 2022 Earnings Release

------

**GLOBE LIFE INC.**

**Earnings Release—Q4 2022**

(Dollar amounts in thousands, except share and per share data)

(Unaudited)

**HEALTH INSURANCE RESULTS BY DISTRIBUTION CHANNEL**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Health Underwriting Margin** | **Health Underwriting Margin** | **Health Underwriting Margin** | **Health Underwriting Margin** | **Health Underwriting Margin** | **Health Underwriting Margin** |
| | **Quarter Ended** | **Quarter Ended** | **Quarter Ended** | **Quarter Ended** | |
| | **December 31,** | **December 31,** | **December 31,** | **December 31,** | |
|  | **2022** | **2022** | **2021** | **2021** |  |
|  | **Amount** | **% of Premium** | **Amount** | **% of Premium** | **% Chg.** |
| United American | $20154 | 15 | $19870 | 15 | 1 |
| Family Heritage | 25834 | 27 | 25442 | 29 | 2 |
| Liberty National | 15869 | 34 | 15041 | 32 | 6 |
| American Income | 17244 | 59 | 17618 | 59 | (2) |
| Direct to Consumer | 2567 | 15 | 2712 | 15 | (5) |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | $81668 | 25 | $80683 | 26 | 1 |

---

---

| | | | |
|:---|:---|:---|:---|
| **Health Premium** | **Health Premium** | **Health Premium** | **Health Premium** |
| | **Quarter Ended** | **Quarter Ended** | |
| | **December 31,** | **December 31,** | |
|  | **2022** | **2021** | **%<br>Chg.** |
| United American | $136771 | $130070 | 5 |
| Family Heritage | 94391 | 88567 | 7 |
| Liberty National | 46111 | 46453 | (1) |
| American Income | 29368 | 29740 | (1) |
| Direct to Consumer | 17293 | 17944 | (4) |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | $323934 | $312774 | 4 |

---

---

| | | | |
|:---|:---|:---|:---|
| **Health Net Sales**<sup>(1)</sup> | **Health Net Sales**<sup>(1)</sup> | **Health Net Sales**<sup>(1)</sup> | **Health Net Sales**<sup>(1)</sup> |
| | **Quarter Ended** | **Quarter Ended** | |
| | **December 31,** | **December 31,** | |
|  | **2022** | **2021** | **%<br>Chg.** |
| United American | $20110 | $26675 | (25) |
| Family Heritage | 22432 | 18489 | 21 |
| Liberty National | 8612 | 7569 | 14 |
| American Income | 3921 | 4453 | (12) |
| Direct to Consumer | 2188 | 1758 | 24 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | $57263 | $58944 | (3) |

---

(1)Net sales, a statistical performance measure, is calculated as annualized premium issued, net of cancellations in the first thirty days after issue, except in the case of Direct to Consumer, where net sales is annualized premium issued at the time the first full premium is paid after any introductory offer period has expired. Management considers net sales to be a better indicator of the rate of premium growth than annualized premium issued.

GL Q4 2022 Earnings Release

------

**GLOBE LIFE INC.**

**Earnings Release—Q4 2022**

(Dollar amounts in thousands, except share and per share data)

(Unaudited)

**PRODUCING EXCLUSIVE AGENT COUNT RESULTS BY DISTRIBUTION CHANNEL** 

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Quarterly Average** <br>**Producing Agent Count**<sup>(1)</sup> | **Quarterly Average** <br>**Producing Agent Count**<sup>(1)</sup> | **Quarterly Average** <br>**Producing Agent Count**<sup>(1)</sup> | **Quarterly Average** <br>**Producing Agent Count**<sup>(1)</sup> |
| | **Quarter Ended** | **Quarter Ended** | | |
| | **December 31,** | **December 31,** | | **Quarter Ended**<br>**September 30,** |
| | **2022** | **2021** |<br>**% Chg.** | **2022** |
| American Income | 9243 | 9530 | (3) | 9477 |
| Liberty National | 2946 | 2724 | 8 | 2784 |
| Family Heritage | 1334 | 1194 | 12 | 1233 |

---

(1) The quarterly average producing agent count is based on the actual count at the end of each week during the period.

**INVESTMENTS** 

Management uses excess investment income as the measure to evaluate the performance of the investment segment. It is defined as net investment income less both the required interest attributable to net policy liabilities and the interest on debt. We also view excess investment income per diluted common share as an important and useful measure to evaluate performance of the investment segment, since it takes into consideration our stock repurchase program.

The following table summarizes Globe Life's investment income, excess investment income, and excess investment income per diluted common share.

---

| | | | |
|:---|:---|:---|:---|
| **Excess Investment Income** | **Excess Investment Income** | **Excess Investment Income** | **Excess Investment Income** |
| | **Quarter Ended** | **Quarter Ended** | **Quarter Ended** |
| | **December 31,** | **December 31,** | **December 31,** |
|  | **2022** | **2021** | **%<br>Chg.** |
| **Net investment income** | $254398 | $239344 | 6 |
| Required interest: |  |  |  |
| &nbsp;&nbsp;Interest on net policy liabilities<sup>(1)</sup> | (166914) | (160900) | 4 |
| &nbsp;&nbsp;&nbsp;Interest on debt | (24658) | (19653) | 25 |
| &nbsp;&nbsp;&nbsp;**Total required interest** | (191572) | (180553) | 6 |
| **Excess investment income** | $62826 | $58791 | 7 |
| &nbsp;&nbsp;&nbsp;&nbsp;Per share | $0.64 | $0.58 | 10 |

---

(1)Interest on net policy liabilities is a component of total policyholder benefits, a GAAP measure.

Net investment income increased 6.3%, and average invested assets increased 3.9%. Required interest on net policy liabilities increased 3.7%, and average net policy liabilities increased 3.5%. The weighted average discount rate for the net policy liabilities was 5.8% and was in line with the year-ago quarter.

GL Q4 2022 Earnings Release

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**GLOBE LIFE INC.**

**Earnings Release—Q4 2022**

(Dollar amounts in thousands, except share and per share data)

(Unaudited)

The composition of the investment portfolio at book value at December 31, 2022 is as follows:

---

| | | |
|:---|:---|:---|
| **Investment Portfolio** | **Investment Portfolio** | **Investment Portfolio** |
| | **As of** | **As of** |
| | **December 31, 2022** | **December 31, 2022** |
| | **Amount** | **% of Total** |
| Fixed maturities at fair value<sup>(1)</sup> | $16503365 | 91 |
| Policy loans | 614866 | 3 |
| Other long-term investments<sup>(2)</sup> | 976016 | 5 |
| Short-term investments | 114121 | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | $18208368 |  |

---

(1) As of December 31, 2022, fixed maturities at amortized cost were $18.3 billion, net of $0 of allowance for credit losses.

(2) Includes $769 million of investments accounted for under the fair value option which have a cost of $765 million as of December 31, 2022.

Fixed maturities at amortized cost, net of allowance for credit losses, by asset class as of December 31, 2022 are as follows:

---

| | | | |
|:---|:---|:---|:---|
| **Fixed Maturity Portfolio by Sector** | **Fixed Maturity Portfolio by Sector** | **Fixed Maturity Portfolio by Sector** | **Fixed Maturity Portfolio by Sector** |
| | **As of** | **As of** | **As of** |
| | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** |
| | **Investment Grade** | **Below Investment Grade** | **Total Amortized Cost, net** |
| Corporate bonds | $14442719 | $492906 | $14935625 |
| Municipals | 2791030 |  | 2791030 |
| Government, agencies and GSEs | 449603 |  | 449603 |
| Collateralized debt obligations |  | 37098 | 37098 |
| Other asset-backed securities | 75843 | 12493 | 88336 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | $17759195 | $542497 | $18301692 |

---

Below are fixed maturities available for sale by amortized cost, allowance for credit losses, and fair value at December 31, 2022 and the corresponding amounts of net unrealized gains or losses recognized in accumulated other comprehensive income (loss).

---

| | | | | |
|:---|:---|:---|:---|:---|
| **As of** | **<br>Amortized<br>Cost** | **Allowance for Credit Losses** | **Net Unrealized Gains (Losses)** | **Fair<br> Value** |
| December 31, 2022 | $18301692 | $– $| (1798327) | $16503365 |

---

At amortized cost, net of allowance for credit losses, 97% of fixed maturities (97% at fair value) were rated "investment grade." The fixed maturity portfolio earned an annual taxable equivalent effective yield of 5.18% during the fourth quarter of 2022, compared with 5.17% in the year-ago quarter.

Globe Life is not a party to any credit default swaps and does not participate in securities lending.

GL Q4 2022 Earnings Release

------

**GLOBE LIFE INC.**

**Earnings Release—Q4 2022**

(Dollar amounts in thousands, except share and per share data)

(Unaudited)

Comparable information for acquisitions of fixed maturity investments is as follows:

---

| | | |
|:---|:---|:---|
| **Fixed Maturity Acquisitions** | **Fixed Maturity Acquisitions** | **Fixed Maturity Acquisitions** |
| | **Quarter Ended** | **Quarter Ended** |
| | **December 31,** | **December 31,** |
|  | **2022** | **2021** |
| Amount | $238845 | $270959 |
| Average annual effective yield | 6.1% | 3.5% |
| Average rating | A | A+ |
| Average life (in years) to: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Next call | 16.5 | 12.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;Maturity | 20.9 | 31.1 |

---

**SHARE REPURCHASE:**

During the quarter, the Company repurchased 489,708 shares of Globe Life Inc. common stock at a total cost of $56 million and an average share price of $115.01.

For the year ended December 31, 2022, the Company repurchased 3.3 million shares of Globe Life Inc. common stock at a total cost of $335 million and an average share price of $100.90.

**LIQUIDITY/CAPITAL:** 

Globe Life's operations consist primarily of writing basic protection life and supplemental health insurance policies which generate strong and stable cash flows. These cash flows are not impacted by volatile equity markets. Liquidity at the Parent Company is sufficient to meet additional capital needs of the insurance companies.

**EARNINGS GUIDANCE FOR THE YEAR ENDING December 31, 2023:** 

New accounting guidance related to long-duration insurance contracts is effective January 1, 2023. Under this new requirement, Globe Life projects net operating income between $10.20 to $10.50 per diluted common share for the year ending December 31, 2023. We estimate the impact of implementing the new accounting guidance results in an increase in net operating income in the range of $105 million to $115 million, primarily as a result of lower amortization of deferred acquisition costs.

**NON-GAAP MEASURES:** 

In this news release, Globe Life includes non-GAAP measures to enhance investors' understanding of management's view of the business. The non-GAAP measures are not a substitute for GAAP, but rather a supplement to increase transparency by providing broader perspective. Globe Life's definitions of non-GAAP measures may differ from other companies' definitions. More detailed financial information, including various GAAP and non-GAAP measurements, is located at *<u>https://investors.globelifeinsurance.com</u>* on the Investors page under "Financial Reports and Other Financial Information."

GL Q4 2022 Earnings Release

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**CAUTION REGARDING FORWARD-LOOKING STATEMENTS:** 

This press release may contain forward-looking statements within the meaning of the federal securities laws, including statements related to the expected impact of the COVID-19 outbreak on our business operations, financial results and financial condition. These prospective statements reflect management's current expectations, but are not guarantees of future performance. Whether or not actual results differ materially from forward-looking statements may depend on numerous foreseeable and unforeseeable events or developments, which may be national in scope, related to the insurance industry generally, or applicable to the Company specifically. Such events or developments could include, but are not necessarily limited to:

1) Economic and other conditions, including the COVID-19 pandemic and its impact on the U.S. economy, leading to unexpected changes in lapse rates and/or sales of our policies, as well as levels of mortality, morbidity, and utilization of health care services that differ from Globe Life's assumptions;

2) Regulatory developments, including changes in accounting standards or governmental regulations (particularly those impacting taxes and changes to the Federal Medicare program that would affect Medicare Supplement);

3) Market trends in the senior-aged health care industry that provide alternatives to traditional Medicare (such as Health Maintenance Organizations and other managed care or private plans) and that could affect the sales of traditional Medicare Supplement insurance;

4) Interest rate changes that affect product sales and/or investment portfolio yield;

5) General economic, industry sector or individual debt issuers' financial conditions (including developments and volatility arising from the COVID-19 pandemic, particularly in certain industries that may comprise part of our investment portfolio) that may affect the current market value of securities we own, or that may impair an issuer's ability to make principal and/or interest payments due on those securities;

6) Changes in pricing competition;

7) Litigation results;

8) Levels of administrative and operational efficiencies that differ from our assumptions (including any reduction in efficiencies resulting from increased costs arising from operating during the COVID-19 pandemic);

9) The ability to obtain timely and appropriate premium rate increases for health insurance policies from our regulators;

10) The customer response to new products and marketing initiatives;

11) Reported amounts in the consolidated financial statements which are based on management estimates and judgments which may differ from the actual amounts ultimately realized;

12) Compromise by a malicious actor or other event that causes a loss of secure data from, or inaccessibility to, our computer and other information technology systems;

13) The severity, magnitude and impact of the COVID-19 pandemic, including effects of the pandemic and the effects of the U.S. government's and other businesses' response to the pandemic, on our operations and personnel, and on commercial activity and demand for our products; and

14) Globe Life's ability to access the commercial paper and debt markets, particularly if such markets become unpredictable or unstable for a certain period as a result of the COVID-19 pandemic.

Readers are also directed to consider other risks and uncertainties described in other documents on file with the Securities and Exchange Commission. Globe Life specifically disclaims any obligation to update or revise any forward-looking statement because of new information, future developments or otherwise.

GL Q4 2022 Earnings Release

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**EARNINGS RELEASE CONFERENCE CALL WEBCAST:** 

Globe Life will provide a live audio webcast of its fourth quarter 2022 earnings release conference call with financial analysts at 10:30 am (Eastern) tomorrow, February 2, 2023. Access to the live webcast and replay will be available at *<u>https://investors.globelifeinsurance.com</u>* on the Calls and Meetings page, at the Conference Calls on the Web icon. Immediately following this press release, supplemental financial reports will be available before the conference call on the Investors page menu of the Globe Life website at "Financial Reports."

---

| | |
|:---|:---|
| **For additional information contact:** | Mike Majors, Executive Vice President - Policy Acquisition and Chief Strategy Officer <br>Globe Life Inc.<br>3700 South Stonebridge Drive<br>P. O. Box 8080<br>McKinney, Texas 75070-8080<br>Phone: 972-569-3627 or email: investors@globe.life<br>Website: https://investors.globelifeinsurance.com |

---

GL Q4 2022 Earnings Release

------

**GLOBE LIFE INC.**

**Earnings Release—Q4 2022**

(Dollar amounts in thousands, except share and per share data)

(Unaudited)

**APPENDIX**

**GLOBE LIFE INC.**

**GAAP CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS**

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended<br>December 31,** | **Three Months Ended<br>December 31,** | **Year Ended<br>December 31,** | **Year Ended<br>December 31,** |
| | **2022** | **2021** | **2022** | **2021** |
| **Revenue:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Life premium | $753655 | $732997 | $3023296 | $2898210 |
| &nbsp;&nbsp;&nbsp;&nbsp;Health premium | 323934 | 312774 | 1279412 | 1201676 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other premium |  |  | 1 | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total premium | 1077589 | 1045771 | 4302709 | 4099887 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net investment income | 254398 | 239344 | 987499 | 952447 |
| &nbsp;&nbsp;&nbsp;&nbsp;Realized gains (losses) | (9703) | 12033 | (76548) | 59319 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other income | 385 | 212 | 1246 | 1216 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total revenue | 1322669 | 1297360 | 5214906 | 5112869 |
| **Benefits and expenses:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Life policyholder benefits | 490726 | 539512 | 2045730 | 2071810 |
| &nbsp;&nbsp;&nbsp;&nbsp;Health policyholder benefits | 199321 | 194156 | 791809 | 758745 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other policyholder benefits | 6807 | 7213 | 27917 | 29061 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total policyholder benefits | 696854 | 740881 | 2865456 | 2859616 |
| &nbsp;&nbsp;&nbsp;&nbsp;Amortization of deferred acquisition costs | 154689 | 151231 | 624407 | 603838 |
| &nbsp;&nbsp;&nbsp;&nbsp;Commissions, premium taxes, and non-deferred acquisition costs | 96947 | 86758 | 374383 | 331510 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other operating expense | 91804 | 81279 | 353954 | 322029 |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest expense | 24658 | 19653 | 90395 | 83486 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total benefits and expenses | 1064952 | 1079802 | 4308595 | 4200479 |
| Income before income taxes | 257717 | 217558 | 906311 | 912390 |
| Income tax benefit (expense) | (46157) | (39605) | (166607) | (167431) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Net income** | $211560 | $177953 | $739704 | $744959 |
| **Total basic net income per common share** | $2.18 | $1.77 | $7.55 | $7.30 |
| **Total diluted net income per common share** | $2.14 | $1.76 | $7.47 | $7.22 |

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GL Q4 2022 Earnings Release