EDGAR 10-K Filing

Company CIK: 320335
Filing Year: 2025
Filename: 320335_10-K_2025_0000320335-25-000013.json

---

ITEM 1. BUSINESS
Item 1. Business
Globe Life and the Company refer to Globe Life Inc., an insurance holding company incorporated in Delaware in 1979, and its subsidiaries and affiliates. Its primary subsidiaries are Globe Life And Accident Insurance Company, American Income Life Insurance Company, Liberty National Life Insurance Company, Family Heritage Life Insurance Company of America, and United American Insurance Company.
Globe Life's website is: www.globelifeinsurance.com. Globe Life makes available free of charge through its website, its annual report on Form 10-K, its quarterly reports on Form 10-Q, current reports on Form 8-K, and amendments to those reports as soon as reasonably practicable after they have been electronically filed with or furnished to the Securities and Exchange Commission. Other information included in Globe Life's website is not incorporated into this filing.
GL 2024 FORM 10-K
The following table presents Globe Life's business by primary marketing distribution channel. Additional information concerning industry segments may be found in Management’s Discussion and Analysis and in Note 15-Business Segments within the Notes to the Consolidated Financial Statements.
Primary Distribution Method Underwriting Company Products and Target Markets Distribution
Direct to Consumer Division Globe Life And Accident Insurance Company
McKinney, Texas Individual life and supplemental health limited-benefit insurance including juvenile and senior life coverage and Medicare Supplement to lower middle-income to middle-income Americans.
Nationwide distribution through direct to consumer channels: including direct mail, electronic media, and insert media.
American Income Life Division American Income Life Insurance Company
Waco, Texas Individual life and supplemental health limited-benefit insurance marketed to working families.
11,741 average producing agents in the U.S., Canada, and New Zealand.
Liberty National Division Liberty National Life Insurance Company
McKinney, Texas Life and supplemental health limited-benefit insurance distributed through in-home and worksite channels.
3,664 average producing agents in the U.S.
Family Heritage Division Family Heritage Life Insurance Company of America
Cleveland, Ohio Supplemental limited-benefit health insurance to lower middle-income to middle-income families. 1,399 average producing agents in the U.S.
United American Division United American Insurance Company
McKinney, Texas Supplemental health Medicare coverage to beneficiaries and, to a lesser extent, supplemental limited-benefit coverage to people under age 65.
3,355 independent producing agents in the U.S.
GL 2024 FORM 10-K
Insurance
Life Insurance-The distribution channels for life insurance products include direct to consumer, exclusive agents, and independent agents. These methods are described in greater detail within the primary marketing distribution channel chart as shown above. The following table presents annualized premium in force for the three years ended December 31, 2024 by distribution method:
Annualized Premium in Force(1)
(Dollar amounts in thousands)
2024 2023 2022
Direct to Consumer
$ 922,508 $ 933,057 $ 936,507
Exclusive agents:
American Income 1,761,713 1,654,197 1,553,003
Liberty National 410,912 390,693 360,963
Independent agents:
United American 6,499 6,958 7,609
Other 197,629 200,840 203,438
$ 3,299,261 $ 3,185,745 $ 3,061,520
(1)See definition of annualized premium in force under Results of Operations in Management's Discussion & Analysis.
Globe Life's insurance subsidiaries write a variety of nonparticipating ordinary life insurance products. These include traditional whole life, term life, and other life insurance. The Company does not currently sell interest-sensitive whole life products. The following tables present selected information about Globe Life's life insurance products.
Annualized Premium in Force
(Dollar amounts in thousands)
2024 2023 2022
Amount % of
Total Amount % of
Total Amount % of
Total
Whole life:
Traditional $ 2,321,947 70 $ 2,213,816 69 $ 2,106,878 69
Interest-sensitive 28,105 1 29,929 1 31,838 1
Term
745,231 23 753,261 24 756,471 25
Other
203,978 6 188,739 6 166,333 5
$ 3,299,261 100 $ 3,185,745 100 $ 3,061,520 100
Policy Count and Average Face Amount Per Policy
(Dollar amounts in thousands)
2024 2023 2022
Policy Count Average Face Amount per Policy Policy Count Average Face Amount per Policy Policy Count Average Face Amount per Policy
Whole life:
Traditional 9,092,122 $ 16.2 9,050,091 $ 16.0 9,011,227 $ 15.7
Interest-sensitive 169,054 20.4 176,339 20.4 183,887 20.4
Term
4,600,839 15.2 4,680,364 15.1 4,720,870 15.3
Other
495,894 18.1 479,664 17.3 453,515 16.1
14,357,909 $ 16.0 14,386,458 $ 15.8 14,369,499 $ 15.6
GL 2024 FORM 10-K
Health Insurance-The following table presents Globe Life's health insurance annualized premium in force for the three years ended December 31, 2024 by distribution channel.
Annualized Premium in Force
(Dollar amounts in thousands)
2024 2023 2022
Direct to Consumer
$ 74,815 $ 70,249 $ 72,161
Exclusive agents:
Liberty National 201,874 200,160 196,336
American Income 119,986 116,962 113,087
Family Heritage 454,725 418,693 387,897
Independent agents:
United American 624,446 579,237 558,373
$ 1,475,846 $ 1,385,301 $ 1,327,854
Globe Life offers Medicare Supplement and limited-benefit supplemental health insurance products that include accident, cancer, critical illness, heart, intensive care, and other health products. These products are designed to supplement health coverage that applicants already own. Medicare Supplements are offered to enrollees in the traditional fee-for-service Medicare program. Medicare Supplement plans are standardized by federal regulation and are designed to pay deductibles and co-payments not paid by Medicare.
The following table presents supplemental health annualized premium in force information for the three years ended December 31, 2024 by product category.
Annualized Premium in Force
(Dollar amounts in thousands)
2024 2023 2022
Amount % of
Total Amount % of
Total Amount % of
Total
Limited-benefit plans $ 824,844 56 $ 782,424 56 $ 735,858 55
Medicare Supplement 651,002 44 602,877 44 591,996 45
$ 1,475,846 100 $ 1,385,301 100 $ 1,327,854 100
Pricing-Premium rates for life and health insurance products are established using assumptions as to future mortality, morbidity, persistency, investment income, expenses, and target profit margins. These assumptions are based on Company experience and projected investment earnings rates. Revenues for individual life and health insurance products are primarily derived from premium income, and, to a lesser extent, through policy charges to the policyholder account values on annuity products and certain individual life products. Profitability is affected by actual experience deviations from the established assumptions and to the extent investment income varies from that required for policy reserves.
Collections for certain life products are not recognized as revenues, but are added to policyholder account values. Revenues from these products are derived from charges to the account balances for insurance risk and administrative costs. Profits are earned to the extent these revenues exceed actual costs. Profits are also earned from investment income in excess of the amounts required for policy reserves.
Underwriting-The underwriting standards of Globe Life's insurance subsidiaries are established by management. Each subsidiary uses information obtained from the application, and in some cases additional information such as, telephone interviews with applicants, inspection reports, pharmacy data, motor vehicle records, responses to both medical and non-medical questions, doctors’ statements and/or medical records and examinations. This information is used to determine whether a policy should be issued in accordance with the application, with a different rating, with a rider, with reduced coverage, or rejected.
Reserves-The life insurance policy reserves reflected in Globe Life's consolidated financial statements as future policy benefits are calculated based on accounting principles generally accepted in the United States of America (GAAP). These reserves, with future premiums and the associated interest compounded at assumed rates, are expected to be sufficient to cover policy and contract obligations as they mature. Generally, the mortality and lapse
GL 2024 FORM 10-K
assumptions used in the calculations of reserves are based on Company experience. Similar reserves are held on most of the health insurance policies written by Globe Life's insurance subsidiaries, since these policies generally are issued on a guaranteed-renewable basis. The assumptions used in the calculation of Globe Life's reserves are reported in Note 1-Significant Accounting Policies. Reserves for certain life products consist of the policyholders’ account values and are increased by policyholder deposits and interest credited and are decreased by policy charges and benefit payments.
Reinsurance-Globe Life has historically participated in third-party reinsurance. See Schedule IV, Note 1-Significant Accounting Policies, Note 5-Commitments and Contingencies, Note 6-Policy Liabilities, and Note 8-Liability for Unpaid Claims for more information.
Investments-The nature, quality, and percentage mix of insurance company investments are regulated by state laws. The investments of Globe Life insurance subsidiaries consist predominantly of high-quality, investment-grade securities. Approximately 88% of our invested assets, at fair value, are fixed maturities at December 31, 2024 (see Note 4-Investments and Management’s Discussion and Analysis).
Competition-Globe Life competes with other life and health insurance carriers through policyholder service, price, product design, and sales efforts. While there are insurance companies competing with Globe Life, no individual company dominates any of Globe Life's life or health insurance markets.
Globe Life's health insurance products compete with, in addition to the products of other health insurance carriers, health maintenance organizations, preferred provider organizations, and other health care-related institutions which provide medical benefits based on contractual agreements.
The Company effectively competes with other carriers, in part, due to its ability to operate at lower policy acquisition and administrative expense levels than peer companies. This allows Globe Life to have competitive rates while maintaining higher underwriting margins.
Regulation
Insurance-Insurance companies are subject to regulation and supervision in the states in which they do business. The laws of the various states establish agencies with broad administrative and supervisory powers which include, among other things, granting and revoking licenses to transact business, regulating trade practices, licensing agents, approving policy forms, approving certain premium rates, setting minimum reserve and loss ratio requirements, determining the form and content of required financial statements, and prescribing the type and amount of investments permitted. Insurance companies are also required to file detailed annual reports with supervisory agencies, and records of their business are subject to examination at any time. Under the rules of the National Association of Insurance Commissioners (NAIC), insurance companies are examined periodically by one or more of the supervisory agencies.
Risk-Based Capital (RBC)-The NAIC requires that a risk-based capital formula be applied to all life and health insurers. The risk-based capital formula is a threshold formula rather than a target capital formula. It is designed only to identify companies that require regulatory attention and is not to be used to rate or rank companies that are adequately capitalized. All Globe Life's insurance subsidiaries are more than adequately capitalized under the risk-based capital formula. See further discussion of RBC in Capital Resources.
Holding Company-States have enacted legislation requiring registration and periodic reporting by insurance companies domiciled within their respective jurisdictions that control or are controlled by other corporations so as to constitute a holding company system. Globe Life Inc. and its subsidiaries have registered as a holding company system pursuant to such legislation in Indiana, Nebraska, Ohio, Texas, and New York.
Insurance holding company system statutes and regulations impose various limitations on investments in subsidiaries, and may require prior regulatory approval for material transactions between insurers and affiliates and for the payment of certain dividends and other distributions.
GL 2024 FORM 10-K
Sustainable Business Practices
Globe Life’s sustainable business practices are a driver of the success and longevity that our Company has experienced since its origin. We plan to advance our sustainable business practices by further developing the Company's sustainability strategy and have substantially aligned disclosures with the Sustainability Accounting Standards Board (SASB) standards and the Task Force on Climate-related Financial Disclosures (TCFD) recommendations.
Environmental responsibility and sustainability are key components of our overall corporate responsibility efforts. We strive to reduce our impact on the environment by placing a company-wide emphasis on recycling and reducing waste at our corporate facilities, focusing on efforts to reduce the use of paper and water. With respect to social matters, our focus continues to be on supporting a culture that is inclusive and attractive for all of our employees and independent sales agents. We are committed to maintaining a diverse workforce that reflects the communities in which we work. In addition, to enable the Company to appropriately respond to related challenges and opportunities, the Company has in place a Sustainability Committee, and the Board and its committees regularly engage with senior management on relevant and related issues.
Human Capital Management
Globe Life's talent base encompasses a broad range of experience that possesses the depth of critical skills to efficiently and effectively accomplish our business purpose and mission, serve our policyholders, and protect our shareholders' interests. Maintaining superior human capital is a key driver to the success and longevity that our Company has experienced since its origins dating back to the early 1900s. As of December 31, 2024, the Company had 3,732 full-time, part-time, and temporary employees, a 3% increase over the prior year. The increase in headcount in 2024 was primarily to support the increased growth in recent periods, as well as lower attrition levels than normal. The Company engages over 16,400 independently-contracted insurance agents. Refer to Management's Discussion & Analysis for exclusive agent counts.
People, Culture, and Community
At Globe Life, we are united by our mission to-Make Tomorrow Better1 and this starts with our employees and agents. Beyond providing insurance protection for millions of individuals, serving our policyholders and generating financial results for our shareholders, we focus on cultivating a healthy, positive culture and a thriving community within and among our campuses that is inclusive of and attractive for all. Globe Life promotes a diverse and inclusive work force to better enable our employees to consistently achieve outstanding individual and collective results. Our commitment to diversity starts at the top; of the 9 independent Board members, 56% are women and 33% are racial/ethnic minorities as of December 31, 2024.
As of December 31, 2024 and 2023, the Globe Life employees, (excluding independently-contracted agents) identify as follows:
Ethnicity/Race Gender Generations
White 51 % Female 68 % Baby Boomers (1946-1964) 14 %
Black or African American 25 Male 32 Gen X (1965-1977) 29
Hispanic or Latino 13 Millennials (1978-1995) 44
Asian 9 Gen Z (1996-2012) 13
American Indian or Alaskan Native 1
Native Hawaiian or Pacific Islander -
Other or Not Specified 1
Total 100 % 100 % 100 %
1Per the Globe Life Employee Handbook, the Globe Life mission statement is "We help families Make Tomorrow Better by working to protect their financial future."
GL 2024 FORM 10-K
Ethnicity/Race Gender Generations
White 52 % Female 68 % Baby Boomers (1946-1964) 16 %
Black or African American 24 Male 32 Gen X (1965-1977) 29
Hispanic or Latino 13 Millennials (1978-1995) 45
Asian 9 Gen Z (1996-2012) 10
American Indian or Alaskan Native 1
Native Hawaiian or Pacific Islander -
Other or Not Specified 1
Total 100 % 100 % 100 %
We conduct a confidential survey biennially to give our employees the opportunity to provide candid feedback about their experiences at the Company, including but not limited to, confidence in the Company and leadership, competitiveness of our compensation and benefit package, and departmental relationships. The results are shared with our employees, reviewed by senior leadership, and used to identify areas for improvement and create action plans based on the employee feedback received.
We strive to Make Tomorrow Better, in part by giving financial and service contributions to programs that provide hands-on assistance in the communities where we live, work, serve, and visit. We focus our charitable giving on organizations that support children, families, veterans, and seniors, as well as those that work to ensure people are able to live full, healthy lives. These categories align with our mission to help families Make Tomorrow Better by working to protect their financial future. In 2024, we provided financial support of more than $7 million to organizations within that focus, including charities that support underserved communities, provide scholarships to youth, and advance equity and diversity efforts.
Talent Development
At Globe Life, we believe investing in our employees through training and development is paramount to their success. We have developed a learning ecosystem that includes a multitude of professional development opportunities, including online, self-directed, and instructor-led courses on a variety of topics. An education assistance program is also offered to facilitate growth in an area related to one's current position with the Company.
Health, Safety, and Wellness
We strive to provide a safe and healthy work environment for every employee. We furnish employees with numerous tools and trainings throughout the year to help ensure they have, at their fingertips, the best information to safely engage with co-workers, customers, and third parties. In furtherance of our commitment to our employees, we offer a comprehensive employee benefits package that includes competitive monetary benefits, retirement benefits through a Section 401(k) plan and a qualified pension to eligible employees, fitness center reimbursement, paid-time-off (based on years of service), health insurance, dental and vision insurance, employee resource program, health savings and flexible spending accounts, family leave, and tuition assistance.
The Company remains committed to the well-being and safety of its employees, agents, customers, guests, vendors, and shareholders in our resolve to maintain a stable and secure business environment.
GL 2024 FORM 10-K

---

ITEM 1A. RISK FACTORS
Item 1A. Risk Factors
Risks Related to Our Business
The following is a summary of the material risks and uncertainties that could adversely affect our business, financial condition, and results of operations.
Business and Operational Risks
The development and maintenance of our various distribution channels are critical to growth in product sales and profits.
Our future success depends, in substantial part, on our ability to recruit, hire, and motivate highly-skilled insurance personnel. Further, the development and retention of producing agents are critical to supporting sales growth in our agency operations because our insurance sales are primarily made to individuals.
A failure to effectively develop new methods of reaching consumers, realize cost efficiencies or generate an attractive value proposition in our Direct to Consumer Division business could result in reduced sales and profits. In addition, if we do not provide an attractive career opportunity with competitive compensation as well as motivation for producing agents to increase sales of our products, our growth could be impeded. Doing so may be difficult due to many factors, including but not limited to, fluctuations in economic and industry conditions and the effectiveness of our compensation programs and competition among other companies.
Our life insurance products are sold in niche markets. We are at risk should any of these markets diminish.
We have several life distribution channels that focus on distinct market niches, three of which are labor unions, affinity groups, and sales via Direct to Consumer solicitations. Deterioration of our relationships with either organized labor union groups or affinity groups, or adverse changes in the public’s receptivity to Direct to Consumer marketing initiatives could negatively affect our life insurance business.
Actual or alleged misclassification of independent contractors at our insurance subsidiaries could result in adverse legal, tax or financial consequences.
A significant portion of our sales agents are independent contractors. Although we believe we have properly classified such individuals, a risk nevertheless exists that a court, the Internal Revenue Service or other authority will take the position that our sales agents are employees. From time-to-time, we are subject to civil litigation, including class and collective action litigation, alleging that we have improperly classified certain of our sales agents as independent contractors. In September 2024, the Equal Employment Opportunity Commission (EEOC) notified us that it had determined that all sales agents affiliated with State General Agent Simon Arias were employees, not independent contractors, of Globe Life Inc. and/or AIL. Such determination is not binding but we expect any potential civil action brought by the EEOC would include such an allegation. A future adverse judgment in connection with any such civil litigation described above could result in substantial damages. Future changes in rules, regulations or interpretations of existing rules and regulations, or significant adverse judgments in litigation, could require us to reclassify all or a portion of our agents as employees and the impact could significantly increase our operating costs and negatively impact our insurance business.
The use of third-party vendors, including independent sales agents, to support the Company's operations makes the Company susceptible to the operational risk of those third parties, which could lower revenues, increase costs, reduce profits, disrupt business, or damage the Company’s reputation.
The Company utilizes third-party vendors, including independent sales agents, to provide certain business services and functions, which exposes the Company to risks outside the control of the Company. The reliance on these third-party vendors creates a number of business risks, such as the risk that the Company may not maintain service quality, control or effective management of the outsourced business operations and that the Company cannot control the data, information systems, facilities or networks of such third-party vendors. We employ controls and procedures designed to facilitate service quality of our third party vendors; however, such controls and procedures cannot be 100% effective in all cases. The Company may be adversely affected by a third-party vendor who
GL 2024 FORM 10-K
operates in a poorly controlled manner or fails to deliver contracted services, which could lower revenues, increase costs, reduce profits, disrupt business, or damage the Company’s reputation.
Extensive federal and state laws regulate our business, imposing certain requirements that independent sales agents must follow in dealing with clients. Misconduct of our independent sales agents could result in violations of law by, or claims against, us or our subsidiaries. From time to time, we are subject to private litigation as a result of alleged misconduct by independent agents. We employ controls and procedures designed to prevent and detect agent misconduct; however, such controls and procedures cannot be 100% effective in all cases. Instances of misconduct or non-compliance or violations of laws or regulations by our independent sales agents could result in adverse findings in either examinations or litigation and subject us to sanctions, monetary liabilities, restrictions on or loss of the operation of our business or reputational harm, any of which could have a material adverse effect on our business, financial condition or results of operations.
Additionally, the Company is at risk of being unable to meet legal, regulatory, financial or customer obligations if the data, information systems, facilities or networks of a third-party vendor are disrupted, damaged or fail, whether due to physical disruptions, such as fire, natural disaster, pandemic or power outage, or due to cybersecurity incidents, ransomware or other impacts to vendors, including labor strikes, political unrest and terrorist attacks.
Financial and Strategic Risks
Our investments are subject to market and credit risks. Significant downgrades, delinquencies and defaults in our investment portfolio could potentially result in lower net investment income and increased realized and unrealized investment losses.
Our invested assets are subject to the customary risks of defaults, downgrades, and changes in market values. Our investment portfolio consists predominately of fixed income investments, where we are exposed to the risk that individual issuers will not have the ability to make required interest or principal payments. A concentration of these investments in any particular issuer, industry, group of related industries or geographic areas could increase this risk. Factors that may affect both market and credit risks include interest rate levels (consisting of both treasury rate and credit spread), financial market performance, disruptions in credit markets, general economic conditions, legislative changes, particular circumstances affecting the businesses or industries of each issuer and other factors beyond our control.
Additionally, as the majority of our investments are long-term fixed maturities that we typically hold until maturity, a significant increase in interest rates and/or credit spreads could cause a material temporary decline in the fair value of our fixed investment portfolio, even with regard to performing assets. These declines could cause a material increase in unrealized losses in our investment portfolio. Significant unrealized losses could substantially reduce our capital position and shareholders’ equity. It is possible our investment in certain of these securities with unrealized losses could experience a credit event where an allowance for credit loss is recorded, reducing net income.
We cannot be assured that any particular issuer, regardless of industry, will be able to make required interest and principal payments on a timely basis or at all. Significant downgrades or defaults of issuers could negatively impact our risk-based capital ratios, leading to potential downgrades of the Company by rating agencies, potential reduction in future dividend capacity from our insurance subsidiaries, and/or higher financing costs at Globe Life Inc. (Parent Company) should additional statutory capital be required.
Changes in interest rates could negatively affect income.
Declines in interest rates expose insurance companies to the risk that they will fail to earn the level of interest on investments assumed in pricing products and in setting discount rates used to calculate policy liabilities, which could have a negative impact on income. Significant decreases in interest rates could result in calls by issuers of investments, where such features are available to issuers. Any such calls could result in a decline in our investment income, as reinvestment of the proceeds would likely be at lower interest rates.
An increase in interest rates could result in certain policyholders surrendering their life or annuity policies for cash, thereby potentially requiring our insurance subsidiaries to liquidate invested assets if other sources of liquidity are
GL 2024 FORM 10-K
not available to meet their obligations. In such a case, realized losses could result from the sale of the invested assets and could adversely affect our statutory income, required capital levels, and results of operations.
Our ability to fund operations is substantially dependent on available funds from our insurance subsidiaries.
As a holding company with no direct operations, our principal asset is the capital stock of our insurance subsidiaries, which periodically declare and distribute dividends on their capital stock. Moreover, our liquidity, including our ability to pay our operating expenses and to make principal and interest payments on debt securities or other indebtedness owed by us, as well as our ability to pay dividends on our common stock or any preferred stock, depends significantly upon the surplus and earnings of our insurance subsidiaries and the ability of these subsidiaries to pay dividends or to advance or repay funds to us.
The principal sources of our insurance subsidiaries’ liquidity are insurance premiums, as well as investment income, maturities, repayments, and other cash flow from our investment portfolio. Our insurance subsidiaries are subject to various state statutory and regulatory restrictions applicable to insurance companies that limit the amount of cash dividends, loans, and advances that those subsidiaries may pay to us, including laws establishing minimum solvency and liquidity thresholds. For example, in the states where our companies are domiciled, an insurance company generally may pay dividends only out of its unassigned surplus as reflected in its statutory financial statements filed in that state. Additionally, dividends paid by insurance subsidiaries are restricted based on regulations by their states of domicile. Accordingly, impairments in assets or disruptions in our insurance subsidiaries’ operations that reduce their capital or cash flow could limit or disallow the payment of dividends, a principal source of our cash flow, to us.
Other sources of liquidity include a variety of short-term and long-term instruments, including our credit facility, commercial paper, long-term debt, Federal Home Loan Bank (FHLB), intercompany financing and reinsurance.
Changes in laws or regulations in the states in which our companies are domiciled could constrain the ability of our insurance subsidiaries to pay dividends or to advance or repay funds to us in sufficient amounts and at times necessary to pay our debt obligations, corporate expenses, or dividends on our capital stock.
We are subject to liquidity risks associated with sourcing a concentration of our funding from the Federal Home Loan Bank (“FHLB”).
We use institutional funding agreements originating from FHLB, which from time to time serve as a significant source of our liquidity. Additionally, we use agreements with the FHLB to meet near-term liquidity needs. If the FHLB were to change its definition of eligible collateral, we could be required to post additional amounts of collateral in the form of cash or other assets. Additionally, if our creditworthiness falls below the FHLB’s requirements or if legislative or other political actions cause changes to the FHLB’s mandate or to the eligibility of life insurance companies to be members of the FHLB system, we could be required to find other sources to replace this funding, which may prove difficult and increase our liquidity risk.
Adverse capital and credit market conditions may significantly affect our ability to meet liquidity needs or access capital, as well as affect our cost of capital.
Should interest rates increase in the future, the higher interest expense on any newly issued debt may reduce net income. In addition, if the credit and capital markets were to experience significant disruption, uncertainty and instability, these conditions could adversely affect our access to capital. Such market conditions could limit our ability to replace maturing debt obligations in a timely manner, or at all, and/or access the capital necessary to grow our business and maintain required capital levels and credit ratings.
In the event that current sources of liquidity do not satisfy our needs, we may have to seek additional financing or raise capital. The availability and cost of additional financing or capital depend on a variety of factors such as market conditions, the general availability of credit or capital, the volume of trading activities, the overall availability of credit to the insurance industry, our credit ratings and credit capacity. Additionally, customers, lenders or investors could develop a negative perception of our financial prospects if we were to incur large investment losses or if the level of our business activity decreased due to a market downturn. Our access to funds may also be impaired if regulatory authorities or rating agencies take negative actions against us. If our internal sources of liquidity prove to
GL 2024 FORM 10-K
be insufficient, we may not be able to successfully obtain additional financing on favorable terms or at all. As such, we may be forced to delay raising capital, issue shorter term securities than we would prefer or bear an unattractive cost of capital which could decrease our profitability and significantly reduce our financial flexibility. If so, our results of operations, financial condition, consolidated RBC, and cash flows could be materially negatively affected.
We have become subject to, and may in the future be subject to, short selling strategies driving down the market price of our common stock.
Short selling is the practice of selling securities that the seller does not own but may have borrowed with the intention of buying identical securities back at a later date. A short seller hopes to profit from a decline in the value of the securities between the sale of the borrowed securities and the purchase of the replacement shares, as the short seller expects to pay less in that purchase than it received in the sale. Because it is in the short seller’s best interests for the price of the securities to decline, some short sellers publish, or arrange for the publication of, opinions or characterizations regarding the relevant issuer, its business prospects and similar matters calculated to or which may create negative market momentum, which may permit them to obtain profits for themselves as a result of selling the stock short. Companies, like us, that are subject to unfavorable allegations, even if untrue, may have to expend a significant amount of resources to investigate such allegations and/or defend themselves, including in connection with securityholder litigation against Globe Life Inc. or investigations by regulators related to or prompted by such allegations.
Since April 2024, we have been and continue to be the target of several short sellers who have published reports making allegations about the Company, which resulted in a significant decline in the price of our common stock. In addition, these reports resulted in significant negative publicity against us, damaged our reputation, and exposed us to securities class action litigation. We have already expended significant resources to defend and repair our reputation. We will continue to defend against any unfounded and unsubstantiated claims about our business, our disclosures, and the integrity of our financial statements, which may require us to expend significant resources.
We may be subject to additional short seller reports and activity in the future. The publication of any such commentary regarding us may bring about a temporary, or long term, decline in the market price of our common stock. No assurances can be made that similar declines in the market price of our common stock or negative publicity will not occur in the future, in connection with such commentary by short sellers or otherwise.
Industry Risks
Variations in actual-to-expected rates of mortality, morbidity and policyholder behavior could materially negatively affect our results of operations and financial condition.
We establish policy reserves to pay future policyholder benefits. These reserves do not represent an exact calculation of liability, but rather are actuarial estimates based on models and accounting requirements that include many assumptions and projections which are inherently uncertain. The reserve assumptions involve the exercise of significant judgment with respect to levels or trends of mortality, morbidity, lapses, and discount rates. Changes in assumptions could materially impact our financial condition and results of operations. Further, actual results may differ significantly from the levels assumed, which could result in increased policy obligations and expenses and thus negatively affect our profit margins and income.
A ratings downgrade or other negative action by a rating agency could materially affect our business, financial condition, and results of operations.
Various rating agencies review the financial performance and condition of insurers, including our insurance subsidiaries, and publish their financial strength ratings as indicators of an insurer’s ability to fulfill its contractual obligations. These ratings are important to maintaining public confidence in our insurance products. A downgrade or other negative action by a rating agency with respect to the financial strength ratings of our insurance subsidiaries could negatively affect us by limiting or restricting the ability of our insurance subsidiaries to pay dividends to us and reducing our sales by adversely affecting our ability to sell insurance products through independent insurance agencies.
GL 2024 FORM 10-K
Obtaining timely and appropriate premium rate increases for certain supplemental health insurance policies is critical.
A significant percentage of the supplemental health insurance premiums that our insurance subsidiaries earn is from Medicare Supplement insurance. Medicare Supplement insurance, including conditions under which the premiums for such policies may be increased, is highly regulated at both the state and federal level. As a result, Medicare Supplement business is characterized by lower profit margins than life insurance and requires strict administrative discipline and economies of scale for success. Since Medicare Supplement policies are coordinated with the federal Medicare program, which commonly experiences health care inflation every year, annual premium rate increases for the Medicare Supplement policies are typically necessary. Accordingly, the inability to obtain approval of appropriate premium rate increases for supplemental health insurance plans in a timely manner from state insurance regulatory authorities could adversely impact their profitability and thus our business, financial condition, and results of operations.
Our business is subject to the risk of the occurrence of catastrophic events that could adversely affect our financial condition or operations.
Our insurance policies are issued to and held by a large number of policyholders throughout the United States in relatively low-face amounts. Accordingly, it is unlikely that a large portion of our policyholder base would be affected by a single natural disaster. However, our insurance operations could be exposed to the risk of catastrophic mortality or morbidity caused by events such as a pandemic or other public health issues, hurricane, earthquake, or man-made catastrophes, including acts of terrorism or war, which may produce significant claims in larger areas, especially those that are heavily populated. Claims resulting from natural or man-made catastrophic events could cause substantial volatility in our financial results for any fiscal quarter or year and could materially reduce our profitability or harm our financial condition. In addition, government, business, and consumer reactions to public health events could result in material negative impacts to our business and operations.
Our life and health insurance products are particularly exposed to risks of catastrophic mortality, such as a pandemic or other events that result in a large number of deaths. In addition, the occurrence of such an event in a concentrated geographic area could have a severe disruptive effect on our workforce and business operations. The likelihood and severity of such events cannot be predicted and are difficult to estimate. In such an event, the impact to our operations could have a material adverse impact on our ability to conduct business and on our results of operations and financial condition, particularly if those problems affect our producing agents or our employees performing operational tasks and supporting computer-based data processing, or impair or destroy our capability to transmit, store, and retrieve valuable data. In addition, in the event that a significant number of our management were unavailable following a disaster, the achievement of our strategic objectives could be negatively impacted.
We are exposed to model risk, which is the risk of financial loss or reputational damage or adverse regulatory impacts caused by model errors or limitations, incorrect implementation of models, or misuse of or overreliance upon models.
Models are utilized by our businesses and corporate areas primarily to project future cash flows associated with pricing products, calculating reserves and valuing assets, as well as in evaluating risk and determining capital requirements, among other uses. These models may not operate properly and may rely on assumptions and projections that are inherently uncertain. As our businesses continue to grow and evolve, the number and complexity of models we utilize expands, increasing our exposure to error in the design, implementation or use of models, including the associated input data and assumptions.
Our business is subject to the risk of direct or indirect effects of climate change.
Climate change may increase the frequency and severity of weather-related events and natural disasters, which may adversely impact our mortality and morbidity rates and disrupt our business operations. In addition, climate change and climate change regulation may affect the prospects of companies and other entities whose securities we hold or our willingness to continue to hold their securities. Climate change may also influence investor sentiment with respect to the Company and investments in our portfolio.
GL 2024 FORM 10-K
Legal, Regulatory, and Compliance Risks
Recent volatility in the trading price of our common stock has and can be expected to result in securities class action litigation.
In April 2024, the trading price of our common stock dropped following the publication of certain short seller reports. As of the date of this Report, one putative securities class action has been filed against Globe Life Inc. and we expect that other putative class action claims may be filed as well. While we intend to defend such actions vigorously, any judgment against us or any future stockholder litigation could have a material adverse effect on our business, financial condition or results of operations.
Our businesses are heavily regulated and changes in regulation or regulatory scrutiny may have a material adverse impact on our business, financial condition or results of operation.
Insurance companies, including our insurance subsidiaries, are subject to extensive supervision and regulation in the states in which they conduct business. The primary purpose of this supervision and regulation is the protection of policyholders, not investors. Regulatory agencies have broad administrative power over numerous aspects of our business, including premium rates for our life, Medicare Supplement and other supplement health products, as well as other terms and conditions included in the insurance policies offered by our insurance subsidiaries, marketing practices, advertising, use of emerging technologies, agent licensing, independent agent practices, policy forms, capital adequacy, solvency, reserves and permitted investments.
Regulatory authorities also have the power to conduct investigations, and to bring administrative or judicial proceedings against us, which could result in suspension or revocation of our licenses, cease and desist orders, fines, civil penalties, disgorgement, criminal penalties or other disciplinary action that could have a material adverse impact on our business, financial condition or results of operation. Press coverage and other public statements that allege wrongdoing, even if untrue, can lead to increased regulatory inquiries or investigations including any that may arise in connection with the subpoenas from U.S. Attorney’s Office for the Western District of Pennsylvania seeking documents related to sales practices by certain of our independent sales agents contracted to sell American Income Life Insurance Company policies.
The insurance laws, regulations and policies currently affecting our companies may change at any time, possibly having an adverse effect on our business. Should regulatory changes occur, we may be unable to maintain all required licenses and approvals, or fully comply with the wide variety of applicable laws and regulations or the relevant authority’s interpretation of such laws and regulations. If we do not have the requisite licenses and approvals or do not comply with applicable regulatory requirements, the insurance regulatory authorities could preclude or temporarily suspend some or all of our business activities and/or impose substantial fines. Additionally, any violation or alleged violation of law or regulations could result in significant legal costs or in legal proceedings that may result in monetary and legal remedies being imposed against the Company, which could have a material adverse effect on our business, financial condition or results of operations.
Changes in accounting standards issued by accounting standard-setting bodies may affect our financial statements, reduce our reported profitability and change the timing of profit recognition.
Our financial statements are subject to the application of GAAP and accounting practices as promulgated by the National Association of Insurance Commissioners’ statutory accounting practices (NAIC SAP), which principles are periodically revised and/or expanded. Accordingly, from time to time we are required to adopt new or revised accounting standards or guidance issued by recognized authoritative bodies. Future accounting standards that we are required to adopt could change the current accounting treatment that we apply to our consolidated financial statements. These changes, including underlying assumptions, projections, estimates or judgments/interpretations by management, could have a material adverse effect on our business, financial condition, and results of operations. (Refer to Note 1-Significant Accounting Policies under the caption Accounting Pronouncements Yet to be Adopted)
GL 2024 FORM 10-K
Non-compliance with laws or regulations related to customer and consumer privacy and information security, including a failure to ensure that third parties with access to sensitive customer and consumer information maintain its confidentiality, could materially adversely affect our reputation and business operations.
The collection, maintenance, use, disclosure, and disposal of personally identifiable information by our insurance subsidiaries are regulated at the international, federal, and state levels. Applicable laws and rules are subject to change by legislation or administrative or judicial interpretation. We are subject to the privacy and security provisions of federal laws including, but not limited to, the Gramm-Leach-Biley Act of 1999 (GLBA), the Health Information Technology for Economic and Clinical Health Act (HITECH), and the Health Insurance Portability and Accountability Act of 1996 (HIPAA). HIPAA additionally requires that we impose privacy and security requirements on our third-party business associates. Various state laws also address the use and disclosure of personally identifiable information, to the extent they are more restrictive than these and other federal laws. Further, approximately half of the states have adopted a form of the National Association of Insurance Commissioners’ data security model law, which imposes security requirements. Noncompliance with these laws, whether by us or by one of our business associates, could have a material adverse effect on our business, reputation, and results of operations and could result in material fines and penalties, various forms of damages, consent orders regarding our privacy and security practices, adverse actions against our licenses to do business, and injunctive relief.
General Risk Factors
The failure to maintain effective and efficient information systems at the Company could adversely affect our financial condition and results of operations.
Our business is highly dependent upon the internet, third-party service providers, and information systems to operate in an efficient and resilient manner. We gather and maintain data for the purpose of conducting marketing, actuarial analysis, sales, and policy administration functions. Our ability to modernize and maintain our information technology systems and infrastructure requires us to commit significant resources and effective planning and execution. This modernization includes the responsible and secure use of emerging technologies like artificial intelligence.
Malicious third parties, employee or agent errors or disasters affecting our information systems could impair our business operations, regulatory compliance, and financial condition. Employee or agent malfeasance or errors in the handling of our information systems may result in unauthorized access to customer or proprietary information, or an inability to use our information systems to efficiently support business operations. As a result of more frequent and sophisticated cyberattacks and the highly regulated nature of the insurance industry, we must continually implement new, and maintain existing, technology or adapt existing technology to protect against security and privacy incidents and to meet compliance requirements of new and proposed regulations.
Any incident affecting confidential information systems resulting from the above factors could damage our reputation in the marketplace, deter potential customers from purchasing our products, result in the loss of existing customers, subject us to significant civil and criminal liability, constrain cash flows, or require us to incur significant technical, legal, or other expenses. In addition, should we be unable to implement or maintain our technology effectively, efficiently, or in a timely manner, it could result in poor customer experience, poor agent experience, additional expenses, reputational harm, legal and regulatory actions, and other adverse consequences. This could also result in the inability to effectively support business operations.
Changes in U.S. federal income tax law could increase our tax costs or negatively impact our insurance subsidiaries' capital.
Changes to the Internal Revenue Code, administrative rulings, or court decisions affecting the insurance industry, including the products insurers offer, could increase our effective tax rate and lower our net income, adversely impact our insurance subsidiaries' capital, or limit the ability of our insurance subsidiaries to sell certain of their products.
GL 2024 FORM 10-K
Damage to the brand and reputation of Globe Life or its subsidiaries could affect our ability to conduct business.
Negative publicity through traditional media, internet, social media, and other public forums, including short seller reports and allegations of independent agent misconduct could damage our brand or reputation, which could adversely impact our ability to recruit and retain agents, our ability to market our products, and the persistency of in-force policies. A reduction in the number of agents selling our products, or the rate of growth of the number of agents selling our products may have an adverse impact on product sales and profit, and such impact may be material.
We may fail to meet expectations relating to corporate responsibility and sustainability standards and practices.
Certain existing or potential investors, customers and regulators evaluate our business or other practices according to a variety of corporate responsibility and sustainability standards and expectations. Certain of our regulators have proposed or adopted, or may propose or adopt, certain corporate responsibility and sustainability rules or standards that would apply to our business. Our practices may be judged by these standards that are continually evolving and not always clear. Our decisions or priorities are made with the considerations of all stakeholders. Prevailing corporate responsibility and sustainability standards and expectations may also reflect contrasting or conflicting values or agendas.
We may fail to meet our corporate responsibility and sustainability expectations. Failure to meet, or achieve progress on, our expectations, on a timely basis, or at all, could adversely affect our reputation, business, financial performance, and growth. We may face adverse regulatory, investor, customer, media, or public scrutiny leading to business, reputational, or legal challenges. In addition, our policies, and processes to evaluate and manage these standards in coordination with other business priorities may not prove completely effective or satisfy investors, customers, regulators, or others.
GL 2024 FORM 10-K

---

ITEM 1B. UNRESOLVED STAFF COMMENTS
Item 1B. Unresolved Staff Comments
As of December 31, 2024, Globe Life had no unresolved SEC staff comments.

---

ITEM 2. PROPERTIES
Item 2. Properties
Globe Life Inc., through its subsidiaries, owns or leases buildings that are used in the normal course of business. Globe Life Inc. owns and occupies approximately 480,000 combined square feet in McKinney, Texas (headquarters) and at the Waco, Texas and Oklahoma City, Oklahoma campuses. Additionally, the Company leases other buildings across the U.S.

---

ITEM 3. LEGAL PROCEEDINGS
Item 3. Legal Proceedings
Discussion regarding litigation and unclaimed property audits is provided in Note 5-Commitments and Contingencies.

---

ITEM 4. MINE SAFETY DISCLOSURE
Item 4. Mine Safety Disclosures
Not Applicable.
GL 2024 FORM 10-K
Part II

---

ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY
Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities
Market Price of and Dividends on the Registrant’s Common Equity and Related Stockholder Matters
The principal market in which Globe Life's common stock is traded is the New York Stock Exchange (NYSE: GL). There were 1,859 shareholders of record on December 31, 2024, excluding shareholder accounts held in nominee form.
The line graph shown below compares Globe Life's cumulative total return on its common stock with the cumulative total returns of the Standard & Poor’s 500 Stock Index (S&P 500) and a Life Insurance Index. Globe Life's stock is included within the S&P 500 Index.
*$100 invested on 12/31/2019 in stock or index, including reinvestment of dividends. Fiscal year ended December 31.
Copyright© 2025 Standard & Poor's, a division of S&P Global. All rights reserved.
Purchases of Certain Equity Securities by the Issuer and affiliated purchasers for the Fourth Quarter 2024
(a) (b) (c) (d)
Period Total Number
of Shares
Purchased Average
Price Paid
Per Share Total Number of
Shares Purchased
as Part of
Publicly Announced
Plans or Programs Maximum Number of
Shares (or Approximate Dollar
Amount) that May Yet Be
Purchased Under the
Plans or Programs
October 1-31, 2024 374,567 $ 105.45 374,567 -
November 1-30, 2024 - - - -
December 1-31, 2024 116,484 108.77 116,484 -

---

ITEM 6. SELECTED FINANCIAL DATA
Item 6. [Reserved]
GL 2024 FORM 10-K
CAUTIONARY STATEMENTS
We caution readers regarding certain forward-looking statements contained in the foregoing discussion and elsewhere in this document, and in any other statements made by, or on behalf of Globe Life whether or not in future filings with the Securities and Exchange Commission. Any statement that is not a historical fact, or that might otherwise be considered an opinion or projection concerning the Company or its business, whether express or implied, is meant as and should be considered a forward-looking statement. Such statements represent management's opinions concerning future operations, strategies, financial results or other developments. We specifically disclaim any obligation to update or revise any forward-looking statement because of new information, future developments, or otherwise.
Forward-looking statements are based upon estimates and assumptions that are subject to significant business, economic and competitive uncertainties, many of which are beyond our control, including uncertainties related to the impact of the recent pandemic and associated direct and indirect effects on our business operations, financial results, and financial condition. If these estimates or assumptions prove to be incorrect, the actual results of Globe Life may differ materially from the forward-looking statements made on the basis of such estimates or assumptions. 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 continued impact of inflation, geopolitical events, and the recent pandemic 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, financing costs, and/or investment yields;
5.General economic, industry sector or individual debt issuers’ financial conditions (including developments and volatility arising from geopolitical events, 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 the competitiveness of the Company's products and pricing;
7.Litigation results or regulatory actions against the Company;
8.Levels of administrative and operational efficiencies that differ from our assumptions (including any reduction in efficiencies resulting from increased costs arising from the impact of higher than anticipated inflation);
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 impact of reputational damage on the Company including the impact on the Company's ability to attract and retain agents;
14.The severity, magnitude, and impact of natural or man-made catastrophic events, including but not limited to pandemics, tornadoes, hurricanes, earthquakes, war and terrorism, on our operations and personnel, commercial activity, level of claims, and demand for our products; and
15.Globe Life's ability to access the commercial paper and debt markets, particularly if such markets become unpredictable or unstable for a certain period.
Readers are also directed to consider other risks and uncertainties described in other documents on file with the Securities and Exchange Commission.
GL 2024 FORM 10-K
GLOBE LIFE INC.
Management's Discussion & Analysis

---

ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS
Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations
The following discussion should be read in conjunction with Globe Life's Consolidated Financial Statements and Notes thereto appearing elsewhere in this report. The following management discussion will only include comparison to prior year. For discussion regarding activity from 2022, please refer to the prior filed Form 10-Ks at www.sec.gov.
"Globe Life" and the "Company" refer to Globe Life Inc. and its subsidiaries and affiliates.
Results of Operations
How Globe Life Views Its Operations. Globe Life Inc. is the holding company for a group of insurance companies that market primarily individual life and supplemental health insurance to lower middle to middle-income households throughout the United States. We view our operations by segments, which are the insurance product lines of life and supplemental health, and the investment segment that supports the product lines.
Insurance Product Line Segments. The insurance product line segments involve the marketing, underwriting, and administration of policies. Each product line is further subdivided by the various distribution channels that market the insurance policies. Each distribution channel operates in a niche market offering insurance products designed for that particular market. Whether analyzing profitability of a segment as a whole, or the individual distribution channels within the segment, the measure of profitability used by management is the underwriting margin, as seen below:
Premium revenue
(Policy obligations)
(Policy acquisition costs and commissions)
Underwriting margin
Investment Segment. The investment segment involves the management of our capital resources, including investments and the management of liquidity. Our measure of profitability for the investment segment is excess investment income, as seen below:
Net investment income
(Required interest on policy liabilities)
Excess investment income
GL 2024 FORM 10-K
GLOBE LIFE INC.
Management's Discussion & Analysis
Current Highlights.
•Net income as a return on equity (ROE) for the year ended December 31, 2024 was 21.7% and net operating income as an ROE, excluding accumulated other comprehensive income(1) was 15.1%.
•Total premium increased 5% over the same period in the prior year. Life premium increased 4% for the period from $3.14 billion in 2023 to $3.26 billion in 2024.
•Net investment income increased 7% over the same period in the prior year.
•Total net sales increased 9% over the same period in the prior year from $768 million in 2023 to $840 million in 2024. The average producing agent count across all of the exclusive agencies increased 11% over the prior year.
•Book value per share increased 33% over the same period in the prior year from $47.10 to $62.50. Book value per share, excluding accumulated other comprehensive income(1), increased 13% over the prior year from $76.21 in 2023 to $86.40 in 2024.
•For the year ended December 31, 2024, the Company repurchased 10.1 million shares of Globe Life Inc. common stock at a total cost of $946 million for an average share price of $93.76.
The following graphs represent net income and net operating income for the three years ended December 31, 2024.
(1)As shown in the charts above, net operating income is primarily comprised of insurance underwriting margin plus excess investment income and annuity and other income, offset by operating expenses after tax and, as such, is considered a non-GAAP measure. It has been used consistently by Globe Life's management for many years to evaluate the operating performance of the Company. It differs from net income primarily because it excludes certain non-operating items such as realized gains and losses and certain significant and unusual items included in net income. Net income is the most directly comparable GAAP measure.
Net operating income as an ROE, excluding accumulated other comprehensive income (AOCI), is considered a non-GAAP measure. Management utilizes this measure to view the business without the effect of changes in AOCI, which are primarily attributable to fluctuation in interest rates. The impact of the adjustment to exclude AOCI is $(2.03) billion and $(2.77) billion for the year ended December 31, 2024 and 2023, respectively.
Book value per share, excluding AOCI, is also considered a non-GAAP measure. Management utilizes this measure to view the book value of the business without the effect of changes in AOCI, which are primarily attributable to fluctuation in interest rates. The impact of the adjustment to exclude AOCI is $(23.90) and $(29.11) for the year ended December 31, 2024 and 2023, respectively.
Refer to Analysis of Profitability by Segment for non-GAAP reconciliation to GAAP.
GL 2024 FORM 10-K
GLOBE LIFE INC.
Management's Discussion & Analysis
Summary of Operations. Net income increased 10% to $1.07 billion in 2024, compared with $971 million in 2023. In 2023, net income increased 9% from $894 million in 2022. On a diluted per common share basis, net income per common share for 2024 increased from $10.07 to $11.94. In 2023, net income per common share, on a diluted per common share basis, increased 11% from $9.04 in 2022.
Net operating income increased 8% to $1.11 billion in 2024, compared with $1.03 billion in 2023, due to a 26% increase in excess investment income as well as a 13% increase in life underwriting margin. In 2023, net operating income increased 7% from $961 million in 2022. On a diluted per common share basis, net operating income per common share for 2024 increased from $10.65 to $12.37, an increase of 16%. In 2023, net income per common share, on a diluted per common share basis, increased 10% from $9.71 in 2022. Net operating income is primarily comprised of insurance underwriting margin plus excess investment income and annuity and other income, offset by operating expenses, after tax and, as such, is considered a non-GAAP measure. Net income is the most directly comparable GAAP measure. We do not consider realized gains and losses to be a component of our core insurance operations or operating segments. Additionally, net income in 2024, 2023, and 2022 was affected by certain non-operating items. We do not view these items as components of core operating results because they are not indicative of past performance or future prospects of the insurance operations. We remove items such as these that relate to prior periods or are non-operating items when evaluating the results of current operations, and therefore exclude such items from our segment analysis for current periods.
As previously noted, a component of insurance underwriting margin is policy obligations, which includes for each reporting period the change in the liability for future policy benefits (LFPB). The LFPB is determined each reporting period based on the net level premium method. Net level premiums reflect a recomputed net premium ratio using actual experience since the issue date, and expected future experience based on future cash-flow assumptions. See Note 6-Policy Liabilities for additional information. The policy liability is accrued as premium revenue is recognized and adjusted for differences between actual and expected experience in the form of remeasurement gains and losses during the period. If actual mortality, morbidity, and lapse experience equals our expected assumptions used in the development of our liability for future policy benefits, there would be no impact to our financial results. Actual experience can have a material impact on financial results to the extent it significantly deviates from the expected assumptions which are used to develop our estimates of the liability for future policy benefits and amortization of the deferred acquisition cost asset (DAC). For example, deviations in actual versus expected lapses in the early policy years tend to have a larger impact on DAC amortization than LFPB change in reserves. Conversely, deviations in actual versus expected lapses in the later policy years typically have a larger impact on LFPB change in reserves than DAC amortization. This is due to the release of DAC and LFPB where DAC capitalization in earlier years is amortizing over time and the LFPB is increasing over time as the policy stays inforce. Disaggregated rollforwards of our present value of expected future net premiums and our expected future policy benefits are presented within Note 6-Policy Liabilities, which include disclosure of remeasurement gain (loss) for the effect of actual variances from expected experience and the changes in assumptions (mortality, morbidity, and lapses) on future cash flows.
The Company performed an annual review of its assumptions in the third quarter of 2024 that resulted in favorable changes to its mortality and lapse assumptions on life and unfavorable changes to morbidity assumptions on health. In our life segment mortality assumptions generally decreased across most channels in line with recent experience consistent with decreasing levels of excess deaths. Lapse rate assumptions in the life segment were slightly increased across all channels. For the health segment, morbidity assumptions were increased, causing higher future policy benefit reserves. The assumption review process of the life and health segments resulted in a $46.3 million net remeasurement gain for the period ended December 31, 2024 as compared to a $3.2 million net remeasurement gain for the period ended December 31, 2023 and a $36.5 million net remeasurement loss for the period ended December 31, 2022.
Excluding the impact of assumption changes, the Company's results for actual variances from expected experience for both life and health produced a $57.4 million net remeasurement gain for the period ended December 31, 2024, as compared to a $38.0 million net remeasurement gain for the period ended December 31, 2023 and a $4.6 million net remeasurement gain for the period ended December 31, 2022.
Overall, the Company continues to see positive signs in its core operations, including sales and premium growth, and continues to achieve an operating ROE (excluding accumulated other comprehensive income) generally in the mid-teens.
GL 2024 FORM 10-K
GLOBE LIFE INC.
Management's Discussion & Analysis
Globe Life's operations on a segment-by-segment basis are discussed in depth below. Net operating income has been used consistently by 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 GAAP net income primarily because it excludes certain non-operating items such as realized gains and losses and other 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.
Analysis of Profitability by Segment
(Dollar amounts in thousands)
2024 2023 2022 2024 Change % 2023 Change %
Life insurance underwriting margin $ 1,352,597 $ 1,192,972 $ 1,129,525 $ 159,625 13 $ 63,447 6
Health insurance underwriting margin 372,423 377,937 377,137 (5,514) (1) 800 -
Excess investment income 164,404 130,382 104,589 34,022 26 25,793 25
Segment profit or (loss) 1,889,424 1,701,291 1,611,251 188,133 11 90,040 6
Annuity and other income 7,636 8,800 11,757 (1,164) (13) (2,957) (25)
Administrative expense (342,430) (301,161) (299,341) (41,269) 14 (1,820) 1
Other corporate expense (179,610) (143,918) (137,201) (35,692) 25 (6,717) 5
Pre-tax total 1,375,020 1,265,012 1,186,466 110,008 9 78,546 7
Applicable taxes (266,036) (238,368) (225,439) (27,668) 12 (12,929) 6
Net operating income
1,108,984 1,026,644 961,027 82,340 8 65,617 7
Reconciling items, net of tax:
Realized gains (losses) (19,108) (51,884) (60,473) 32,776 8,589
Non-operating expenses (2,070) (3,294) (4,196) 1,224 902
Legal proceedings (17,044) (711) (1,972) (16,333) 1,261
Net income
$ 1,070,762 $ 970,755 $ 894,386 $ 100,007 10 $ 76,369 9
The life insurance segment is our primary segment and is the largest contributor to earnings in each year presented. In 2024, the life insurance segment underwriting margin increased $160 million compared with 2023. This was primarily a result of increased premiums and favorable policy obligations as a percent of premium due to a remeasurement gain resulting from the assumption updates in 2024. In 2023, the life insurance segment underwriting margin increased $63 million when compared with 2022. The increase was due to increased premiums, favorable policy obligations as a percent of premium, and a lower remeasurement loss resulting from assumption updates in 2023. Excess investment income increased $34 million in 2024 compared with 2023, resulting from growth in our invested assets and increased yields due to higher interest rates. In 2023, excess investment income increased $26 million compared with 2022. In 2024, underwriting margin in the health segment decreased to $372 million due to higher claim utilization, compared with $378 million in 2023 and $377 million in 2022.
GL 2024 FORM 10-K
GLOBE LIFE INC.
Management's Discussion & Analysis
In 2024, the largest contributor of total underwriting margin was the life insurance segment and the primary distribution channel was the American Income Life Division (American Income). The following charts represent the breakdown of total underwriting margin by operating segment and distribution channel for the year ended December 31, 2024.
Total premium income rose 5% for the year ended December 31, 2024 to $4.67 billion. Total net sales increased 9% to $840 million, when compared with 2023. Total first-year collected premium (defined in the following section) increased 11% to $674 million for 2024, compared to $605 million in 2023.
Life insurance premium income increased 4% to $3.26 billion over the prior-year total of $3.14 billion. Life net sales rose 9% to $595 million for the year ended 2024. First-year collected life premium increased 8% to $455 million. Life underwriting margin, as a percent of premium, increased to 41% for 2024 from 38% in 2023. Underwriting margin increased to $1.35 billion in 2024, compared to $1.19 billion in 2023.
Health insurance premium income increased 7% to $1.40 billion over the prior-year total of $1.32 billion. Health net sales rose 10% to $245 million for the year ended 2024. First-year collected health premium rose 18% to $219 million. Health underwriting margin, as a percent of premium, was 27% for 2024 and 29% for 2023. Health underwriting margin declined to $372 million for the year ended 2024, compared to $378 million in 2023.
Excess investment income, the measure of profitability of our investment segment, increased 26% during the year ended 2024 to $164.4 million from $130.4 million in 2023. Excess investment income per common share, reflecting the impact of our share repurchase program and increased net investment income, increased 36% to $1.83 from $1.35 when compared with the same period in 2023.
Insurance administrative expenses increased 14% in 2024 when compared with the prior-year period. These expenses were 7.3% as a percent of premium during 2024 compared to 6.8% in 2023.
For the year ended December 31, 2024, the Company repurchased 10.1 million Globe Life Inc. shares at a total cost of $946 million for an average share price of $93.76.
GL 2024 FORM 10-K
GLOBE LIFE INC.
Management's Discussion & Analysis
The discussions of our segments are presented in the manner we view our operations, as described in Note 15-Business Segments.
We use three measures as indicators of premium growth and sales over the near term: “annualized premium in force,” “net sales,” and “first-year collected premium.”
•Annualized premium in force is defined as the premium income that would be received over the following twelve months at any given date on all active policies if those policies remain in force throughout the twelve-month period.
•Net sales is calculated as annualized premium issued, net of cancellations generally 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 (typically 1 month) has expired. Management considers net sales to be a better indicator of the rate of premium growth than annualized premium issued since annualized premium issued excludes cancellations, and cancellations do not contribute to premium income.
•First-year collected premium is defined as the premium collected during the reporting period for all policies in their first policy year. First-year collected premium takes lapses into account in the first year when lapses are more likely to occur, and thus is a useful indicator of how much new premium is expected to be added to premium income in the future. First-year collected premiums are lower than net sales over the prior 12 months because premiums are not collected on lapsed policies after the date of lapse.
Cancellations are not included in lapses.
Approximately 90% of our premiums are collected monthly; however, other premium payment options such as quarterly and annual are offered by the Company and may be elected by the policyholder. The majority of premiums are paid by way of automatic draft or electronic payment from our policyholders and to a lesser extent from other payment methods such as check, credit card, and worksite payroll deduction.
Excluding our Direct to Consumer Division, we sell our policies primarily through independently contracted agents (“agents”) who earn commissions in accordance with contracts they have with the respective insurance subsidiary of the Company. These contract arrangements with agents cover commission structures and rates, contract periods, credit terms for settlement of agent advance accounts, vesting rights in future renewal commissions upon termination of contracts and responsibility for certain premium collections. Contract terms with agents vary, but generally commissions are earned over the life of the policy as premiums are paid. Commissions are calculated on a policy-by-policy basis and vary by product type and policy year. Commission rates are higher for the first-year premium when a policy is issued and are generally reduced for policies that remain in effect for renewal periods (e.g., commission rates may reduce in years 2-10 and again in year 11 and after). After a certain period (typically 10 years), commission rates become constant over the remaining life of the policy and are considered level commissions.
See further discussion of the distribution channels below for Life and Health.
GL 2024 FORM 10-K
GLOBE LIFE INC.
Management's Discussion & Analysis
LIFE INSURANCE
Life insurance is the Company's predominant segment. During 2024, life premium represented 70% of total premium and life underwriting margin represented 78% of the total underwriting margin. Additionally, investments supporting the reserves for life products produce the majority of excess investment income attributable to the investment segment.
The following table presents the summary of results of life insurance. Further discussion of the results by distribution channel is included below.
Life Insurance
Summary of Results
(Dollar amounts in thousands)
2024 2023 2022
Amount % of
Premium
Amount % of
Premium
Amount % of
Premium
Premium and policy charges $ 3,261,347 100 $ 3,137,244 100 $ 3,027,824 100
Policy obligations 2,000,977 62 2,050,789 65 2,035,693 67
Required interest on reserves (811,147) (25) (772,701) (24) (735,688) (24)
Net policy obligations 1,189,830 37 1,278,088 41 1,300,005 43
Amortization of acquisition costs 356,223 11 327,426 10 298,841 10
Commission expense 159,703 5 145,678 5 140,283 5
Premium taxes 68,360 2 64,571 2 61,609 2
Non-deferred acquisition costs 134,634 4 128,509 4 97,561 3
Total expense 1,908,750 59 1,944,272 62 1,898,299 63
Insurance underwriting margin
$ 1,352,597 41 $ 1,192,972 38 $ 1,129,525 37
Net policy obligations amounted to 37% of premiums for the year ended December 31, 2024, compared to 41% in 2023, and 43% in 2022. This improvement was primarily due to the assumptions updated based upon our review of lapses, mortality, and morbidity resulting in a remeasurement gain of $56.8 million compared to a remeasurement loss of $2.0 million in 2023 and a remeasurement loss of $47.2 million in 2022. Refer to Note 6-Policy Liabilities for further discussion of the Company's annual assumptions review.
The table below summarizes life underwriting margin by distribution channel for the last three years.
Life Insurance
Underwriting Margin by Distribution Channel
(Dollar amounts in thousands)
2024 2023 2022
Amount % of Premium Amount % of Premium Amount % of Premium
American Income $ 799,946 47 $ 719,378 45 $ 692,107 46
Direct to Consumer 281,948 29 234,893 24 213,748 22
Liberty National 140,136 38 114,646 33 101,202 31
Other 130,567 64 124,055 60 122,468 58
Total
$ 1,352,597 41 $ 1,192,972 38 $ 1,129,525 37
GL 2024 FORM 10-K
GLOBE LIFE INC.
Management's Discussion & Analysis
The following table presents Globe Life's life premium distribution channel for the last three years.
Life Insurance
Premium by Distribution Channel
(Dollar amounts in thousands)
2024 2023 2022
Amount % of
Total Amount % of
Total Amount % of
Total
American Income $ 1,698,209 52 $ 1,588,702 51 $ 1,505,034 50
Direct to Consumer 988,522 30 991,406 31 985,488 32
Liberty National 371,061 12 349,736 11 327,469 11
Other 203,555 6 207,400 7 209,833 7
Total
$ 3,261,347 100 $ 3,137,244 100 $ 3,027,824 100
Annualized life premium in force was $3.3 billion at December 31, 2024, an increase of 4% over $3.2 billion a year earlier.
The following table presents life net sales, an indicator of new business production, by distribution channel for each of the last three years.
Life Insurance
Net Sales by Distribution Channel
(Dollar amounts in thousands)
2024 2023 2022
Amount % of
Total Amount % of
Total Amount % of
Total
American Income $ 381,945 64 $ 322,658 59 $ 316,715 59
Direct to Consumer 106,310 18 116,454 21 125,979 24
Liberty National 98,162 16 95,459 18 78,390 15
Other 8,936 2 9,701 2 9,844 2
Total
$ 595,353 100 $ 544,272 100 $ 530,928 100
The table below discloses first-year collected life premium by distribution channel for the last three years.
Life Insurance
First-Year Collected Premium by Distribution Channel
(Dollar amounts in thousands)
2024 2023 2022
Amount % of
Total Amount % of
Total Amount % of
Total
American Income $ 305,165 67 $ 266,429 63 $ 257,584 63
Direct to Consumer 67,452 15 77,570 19 86,854 21
Liberty National 74,553 16 67,618 16 56,085 14
Other 7,678 2 8,542 2 8,988 2
Total
$ 454,848 100 $ 420,159 100 $ 409,511 100
GL 2024 FORM 10-K
GLOBE LIFE INC.
Management's Discussion & Analysis
A discussion of life operations by distribution channel follows.
The American Income Life Division markets to members of labor unions and other affinity groups and continues to diversify its lead sources utilizing third-party internet vendor leads and obtaining referrals to facilitate sustainable growth. This division is Globe Life's largest contributor of life premium of any distribution channel at 52% of the Company's 2024 total life premium. In 2024, the average monthly life premium issued per policy was $56 as compared to $54 in 2023. Net sales were $382 million in 2024, up from $323 million in 2023. The underwriting margin, as a percent of premium, was 47% in 2024, up from 45% in 2023.
The average producing agent count increased 11% over the year-ago period. Over 65% of the Division's net sales are driven by agents that have been producing for the Division for six months or more. The increase in average producing agent count was driven by an increase in new agent recruiting along with continued improvement in new agent retention. Sales growth in this Division, as well as within our other exclusive agencies, is generally dependent on growth in the size of the agency force.
Below is the average producing agent count as of the indicated periods for the American Income Division. The average producing agent count is based on the actual count at the beginning and end of each week during the year.
2024 2023 2022 2024 Change % 2023 Change %
American Income 11,741 10,579 9,444 1,162 11 1,135 12
American Income Life continues to focus on growing and strengthening the agency force, specifically through emphasis on agency middle-management growth and additional agency office openings. In addition to offering financial incentives and training opportunities, the Division has made considerable investments in information technology, including a customer relationship management (CRM) tool for the agency force. This tool is designed to drive productivity in lead distribution, conservation of business, manager dashboards, and new agent recruiting. Additionally, this Division has invested in and successfully implemented technology that allows the agency force to engage in virtual recruiting, training, and sales activity. The agents have shifted to primarily a virtual experience with customers and have generated the vast majority of sales through virtual presentations. We find this flexibility to be attractive to new recruits as well as a driver of sustainability for our agency force.
The Direct to Consumer Division (DTC) markets adult and juvenile life insurance through a variety of mediums, including direct mail, insert media, and digital marketing. The different media channels support and complement one another in the Division's efforts to provide consumer outreach. All three channels work in an omnichannel approach. Sales from the internet and inbound phone calls continue to outpace the activity from direct mail. DTC's long-term growth has been fueled by consistent innovation and brand awareness. Additionally, the DTC division provides valuable support to our agency business through brand impressions and inquires that may lead to sales in our exclusive agency channels. New initiatives are continuously introduced to help increase response rates, issue rates, and create a seamless customer experience. The juvenile market is an important source of sales as well as a vehicle to reach the parent and grandparent market of juvenile policyholders, who are more likely to respond favorably to a solicitation for life insurance.
It is also a vehicle to reach the parents and grandparents of juvenile policyholders, who are more likely to respond favorably to a seamless customer experience solicitation for life coverage on themselves in comparison to the general adult population. Also, future offerings to juvenile policyholders and their parents are sources of lower acquisition-cost life insurance sales in the future.
DTC net sales declined 9% to $106 million in 2024 compared with $116 million for the same period a year ago. This decline is due primarily to the management of costs relative to direct mail and mailing insert marketing activity as a result of inflation related to postage, paper, and online advertising costs. While total sales have declined, the focus has been on improving profitability and improving the underwriting margin. In 2024, DTC’s underwriting margin, as a percent of premium, was 29% compared with 24% in 2023.
GL 2024 FORM 10-K
GLOBE LIFE INC.
Management's Discussion & Analysis
The Liberty National Division markets individual life insurance to middle-income household and worksite customers. Recent investments in new sales technologies as well as recent growth in middle management within the agency are expected to support increased sales. The underwriting margin as a percent of premium was 38% in 2024, compared with 33% in 2023. The increase is primarily attributable to increased premiums and lower policy obligations as a percent of premium during the year compared with the same year ago period. In 2024, the average monthly life premium issued per policy was $43 as compared to $44 in 2023. Net sales rose 3% in 2024 over the same period in 2023 due primarily to increased agent count.
Below is the average producing agent count as of the indicated periods for the Liberty National Division. The average producing agent count is based on the actual count at the beginning and end of each week during the year.
2024 2023 2022 2024 Change % 2023 Change %
Liberty National 3,664 3,229 2,775 435 13 454 16
The Liberty National Division average producing agent count increased significantly compared with the prior-year comparable periods. We continue to execute our long-term plan to grow this agency through expansion from small-town markets in the Southeast to more densely populated areas with larger pools of potential agent recruits and customers as we serve communities, regions, and cities. Continued expansion of this Division’s presence in larger geographic cities, with less penetrated areas will help create long-term sustainable agency growth. Additionally, the Division continues to help improve the ability of agents to develop new worksite marketing business. Systems that have been put in place, including the addition of a CRM platform and enhanced analytical capabilities, have helped the agents develop additional worksite marketing opportunities as well as improve the productivity of agents selling in the individual life market. As the Division continues to gain momentum in its sales and recruiting initiatives, as well as advances in its technology and CRM platform, the Division anticipates continued growth in recruiting activity, average producing agent count and net sales.
The Other agency distribution channels primarily include non-exclusive independent agencies selling primarily life insurance. The other distribution channels contributed $204 million of life premium income, or 6% of Globe Life's total life premium income in 2024, and contributed 2% of net sales for the year.
HEALTH INSURANCE
Health insurance sold by the Company primarily includes Medicare Supplement insurance including retiree health insurance business, accident coverage, and other limited-benefit supplemental health products including cancer, critical illness, heart disease, intensive care, and other health products.
Health premium accounted for 30% of our total premium in 2024, while the health underwriting margin accounted for 22% of total underwriting margin. Health underwriting margin declined to $372 million compared to $378 million in the prior year. While the Company continues to emphasize life insurance sales relative to health due to life’s superior long-term profitability and its greater contribution to excess investment income, the health business provides a significant contribution to return on equity as it does not require a substantial amount of up-front capital.
GL 2024 FORM 10-K
GLOBE LIFE INC.
Management's Discussion & Analysis
The following table presents the summary of health insurance results. Further discussion of the results by distribution channel is included below.
Health Insurance
Summary of Results
(Dollar amounts in thousands)
2024 2023 2022
Amount % of
Premium
Amount % of
Premium
Amount % of
Premium
Premium $ 1,404,925 100 $ 1,318,773 100 $ 1,282,417 100
Policy obligations 851,577 61 776,362 59 752,866 59
Required interest on reserves (110,342) (8) (106,516) (8) (102,315) (8)
Net policy obligations 741,235 53 669,846 51 650,551 51
Amortization of acquisition costs 52,224 3 50,598 4 48,185 4
Commission expense 158,869 11 150,192 11 145,185 11
Premium taxes 28,421 2 26,440 2 24,653 2
Non-deferred acquisition costs 51,753 4 43,760 3 36,706 3
Total expense 1,032,502 73 940,836 71 905,280 71
Insurance underwriting margin
$ 372,423 27 $ 377,937 29 $ 377,137 29
Net policy obligations amounted to 53% of premium in 2024 compared to 51% in both 2023 and 2022. This increase was primarily due to the assumptions review of lapses and morbidity resulting in a remeasurement loss of $10.5 million compared to a remeasurement gain of $5.2 million and $10.7 million in 2023 and 2022, respectively. Refer to Note 6-Policy Liabilities for further discussion of the Company's annual assumptions review.
The table below summarizes health underwriting margin by distribution channel for the last three years.
Health Insurance
Underwriting Margin by Distribution Channel
(Dollar amounts in thousands)
2024 2023 2022
Amount % of Premium Amount % of Premium Amount % of Premium
United American $ 47,964 8 $ 57,344 11 $ 62,695 12
Family Heritage 146,478 34 135,691 34 124,936 34
Liberty National 106,033 56 105,317 56 107,662 57
American Income 67,912 55 74,668 62 74,551 64
Direct to Consumer 4,036 6 4,917 7 7,293 10
Total
$ 372,423 27 $ 377,937 29 $ 377,137 29
GL 2024 FORM 10-K
GLOBE LIFE INC.
Management's Discussion & Analysis
The following table presents Globe Life's health premium by distribution channel for the last three years.
Health Insurance
Premium by Distribution Channel
(Dollar amounts in thousands)
2024 2023 2022
Amount % of
Total
Amount % of
Total
Amount % of
Total
United American $ 591,774 42 $ 545,723 42 $ 539,874 42
Family Heritage 427,654 30 396,209 30 366,820 29
Liberty National 190,381 14 187,934 14 187,241 15
American Income 123,123 9 120,332 9 117,353 9
Direct to Consumer 71,993 5 68,575 5 71,129 5
Total
$ 1,404,925 100 $ 1,318,773 100 $ 1,282,417 100
Premium related to limited-benefit supplemental health products comprise $786 million, or 56%, of the total health premiums for 2024 compared with $743 million, or 56%, in 2023. Premium from Medicare Supplement products comprises the remaining $619 million, or 44%, for 2024 compared with $576 million, or 44%, in 2023.
Annualized health premium in force was $1.48 billion at December 31, 2024, an increase of 7% from $1.39 billion a year earlier.
Presented below is a table of health net sales, an indicator of new business production, by distribution channel for each of the last three years.
Health Insurance
Net Sales by Distribution Channel
(Dollar amounts in thousands)
2024 2023 2022
Amount % of
Total
Amount % of
Total
Amount % of
Total
United American $ 80,296 33 $ 72,208 32 $ 58,601 31
Family Heritage 105,623 43 96,093 43 82,529 43
Liberty National 33,001 13 33,155 15 28,916 15
American Income 21,103 9 18,124 8 17,555 9
Direct to Consumer 5,004 2 3,993 2 3,825 2
Total
$ 245,027 100 $ 223,573 100 $ 191,426 100
Health net sales related to limited-benefit supplemental health products, comprise $175 million, or 71%, of the total health net sales for 2024 compared with $161 million, or 72%, in 2023. Medicare Supplement sales make up the remaining $70 million, or 29%, for 2024 compared with $63 million, or 28%, in 2023.
GL 2024 FORM 10-K
GLOBE LIFE INC.
Management's Discussion & Analysis
The following table discloses first-year collected health premium by distribution channel for the last three years.
Health Insurance
First-Year Collected Premium by Distribution Channel
(Dollar amounts in thousands)
2024 2023 2022
Amount % of
Total
Amount % of
Total
Amount % of
Total
United American $ 87,190 40 $ 66,002 36 $ 64,410 39
Family Heritage 79,934 36 72,362 39 60,699 36
Liberty National 28,114 13 25,608 14 22,415 13
American Income 19,740 9 17,633 9 17,294 10
Direct to Consumer 4,064 2 3,683 2 3,115 2
Total
$ 219,042 100 $ 185,288 100 $ 167,933 100
First-year collected premium related to limited-benefit supplemental health plans comprise $155 million, or 71% of total first-year collected premium for 2024 compared with $133 million, or 72%, in 2023. First-year collected premium from Medicare Supplement policies make up the remaining $64 million, or 29%, for 2024 compared with $52 million, or 28%, in 2023.
A discussion of health operations by distribution channel follows.
The United American Division consists of non-exclusive independent agencies and brokers who may also sell for other companies. The United American Division was Globe Life's largest health agency in terms of health premium income, with net sales up 11% from the same period in the prior year.
This Division includes three different units:
•UA General Agency, which primarily sells individual Medicare Supplement insurance through independent agents;
•Special Markets, which markets retiree health insurance to employer and union groups through brokers; and
•Globe Life Group Benefits, which offers group worksite supplemental health insurance through brokers.
The majority of the premium revenue comes from Medicare Supplement. Underwriting margin as a percent of premium for the Division was 8% in 2024, declining due to increased claims utilization, 11% in 2023, and 12% in 2022.
The Family Heritage Division primarily markets individual limited-benefit supplemental health insurance in small to medium sized businesses. Most of its policies include a cash-back feature, such as a return of premium, where any excess of premiums over claims paid is returned to the policyholder at the end of a specified period stated within the insurance policy. Underwriting margin as a percent of premium was 34% in 2024, the same as in 2023 and 2022.
The division experienced a 10% rise in health net sales in 2024 as compared with 2023, primarily due to an increase in producing agents and improved agent productivity and training. The Division will continue to implement incentive and retention programs to further increases in the number of producing agents.
The average producing agent count was up 5% compared with the same period a year ago. The Division has recently increased efforts to grow agency middle management, which also positively impacts average producing agent count. While growth in net sales and earned premium is impacted by agent productivity, growth in the number of average producing agents is the primary driver of future growth in sales, similar to other exclusive agencies.
GL 2024 FORM 10-K
GLOBE LIFE INC.
Management's Discussion & Analysis
Below is the average producing agent count as of the indicated periods for the Family Heritage Division. The average producing agent count is based on the actual count at the beginning and end of each week during the year.
2024 2023 2022 2024 Change % 2023 Change %
Family Heritage 1,399 1,334 1,210 65 5 124 10
The Liberty National Division represented 14% of all Globe Life health premium income in 2024. The Liberty National Division markets limited-benefit supplemental health products, consisting primarily of cancer and critical illness insurance. Much of Liberty National’s health business is generated through worksite marketing targeting small businesses. Health premium at the Liberty National Division was $190 million in 2024 up from $188 million in 2023. Liberty National's first-year collected premium increased 10% to $28 million in 2024 compared with $26 million in 2023. Health net sales is slightly lower in 2024 as compared to 2023. Underwriting margin as a percent of premium was 56% in 2024 and 2023.
While both the American Income Life Division and the Direct to Consumer Division sell life insurance, they also market health products. The American Income Life Division primarily markets accident plans. The Direct to Consumer Division primarily markets Medicare Supplements to employer or union-sponsored groups. On a combined basis, these other channels accounted for 14% of health premium in 2024 and 2023.
INVESTMENTS
We manage our capital resources, including investments and cash flow, through the investment segment. Excess investment income represents the profit margin attributable to investment operations and is the measure that we use to evaluate the performance of the investment segment as described in Note 15-Business Segments. It is defined as net investment income less the required interest attributable to policy liabilities.
Management also views excess investment income per diluted common share as an important and useful measure to evaluate the performance of the investment segment. It is defined as excess investment income divided by the total diluted weighted average shares outstanding, representing the contribution by the investment segment to the consolidated earnings per share of the Company. As excess investment income per diluted common share incorporates all invested assets and insurance liabilities, we view excess investment income per diluted common share as a useful measure to evaluate the investment segment.
GL 2024 FORM 10-K
GLOBE LIFE INC.
Management's Discussion & Analysis
Excess Investment Income. The following table summarizes Globe Life's investment income, excess investment income, and excess investment income per diluted common share.
Analysis of Excess Investment Income
(Dollar amounts in thousands except per share data)
2024 2023 2022
Net investment income $ 1,135,631 $ 1,056,884 $ 991,800
Interest on policy liabilities(1)
(971,227) (926,502) (887,211)
Excess investment income
$ 164,404 $ 130,382 $ 104,589
Excess investment income per diluted common share
$ 1.83 $ 1.35 $ 1.06
Mean invested assets (at amortized cost) $ 21,337,531 $ 20,411,093 $ 19,714,027
Average insurance policy liabilities
17,527,857 16,772,861 16,060,240
(1)Interest on policy liabilities, at original rates, is a component of total policyholder benefits, a GAAP measure.
Excess investment income increased $34 million, or 26%, in 2024 when compared with 2023. In 2023, excess investment income increased $26 million, or 25%, when compared with 2022. Excess investment income per diluted common share was $1.83 during 2024, an increase of 36% over the prior-year period ended 2023. Excess investment income per diluted common share was $1.35 during 2023, an increase of 27% over the period ended 2022. Excess investment income per diluted common share generally increases at a faster pace than excess investment income because the number of diluted shares outstanding generally decreases from year to year as a result of our share repurchase program.
Net investment income increased at a compound annual growth rate of 6% over the three years ending 2024. Mean invested assets increased at a compound annual growth rate of 4% during the same period. The effective annual yield rate earned on the fixed maturity portfolio was 5.26% in 2024, compared with 5.20% in 2023. Generally, investment income grows at a slower rate than the assets when the yield on new investments is lower than the yield on dispositions or the average portfolio yield. It also increases at a faster rate than the assets when new investment yields exceed the yield on dispositions or the average portfolio yield. Investment income grew in the current period due to the growth in invested assets and the higher yields on new investments relative to the yield on dispositions and average portfolio yield. In addition to fixed maturities, the Company has also invested in commercial mortgage loans and limited partnerships with debt-like characteristics that diversify risk and enhance risk-adjusted, capital-adjusted returns on the portfolio. The earned yield on the Company's commercial mortgage loans for the year ended December 31, 2024 was 8.04%. The earned yield on limited partnership investments for the year ended December 31, 2024 was 8.42%. See additional information in Note 4-Investments. The following chart presents the growth in net investment income and the growth in mean invested assets.
2024 2023 2022
Growth in net investment income 7.5 % 6.6 % 3.7 %
Growth in mean invested assets (at amortized cost) 4.5 % 3.5 % 4.1 %
Globe Life's net investment income benefits from higher interest rates on new investments. While increasing interest rates have resulted in a net unrealized loss from our available for sale debt securities included in accumulated other comprehensive income (loss) as of December 31, 2024, we are not concerned because we do not generally intend to sell, nor is it likely that we will be required to sell, fixed maturity investments prior to their anticipated recovery.
Required interest on insurance policy liabilities reduces excess investment income, as it is the amount of net investment income considered by management necessary to cover the interest-related growth on insurance policy liabilities. As such, it is reclassified from the insurance segment to the investment segment. As discussed in Note 15-Business Segments, management regards this as a more meaningful analysis of the investment and insurance segments. Required interest is based on the original discount rate assumptions for our insurance policies in force.
GL 2024 FORM 10-K
GLOBE LIFE INC.
Management's Discussion & Analysis
The vast majority of our life and health insurance policies are fixed interest rate protection policies, not investment products, and are accounted for under current GAAP accounting guidance for long-duration insurance products which mandate that interest rate assumptions for a particular block of business be “locked in” for the life of that block of business. Each calendar year, we set the original discount rate to be used to calculate the benefit reserve liability for all insurance policies issued that year. The liability reported on the balance sheet is updated in subsequent periods using current discount rates as of the end of the relevant reporting period with a corresponding adjustment to Other Comprehensive Income.
The discount rate used for policies issued in the current year has no impact on the in-force policies issued in prior years as the rates of all prior issue years are also locked in for purposes of recognizing income. As such, the overall original discount rate for the entire in-force block of 5.5% is a weighted average of the discount rates being used from all issue years. Changes in the overall weighted-average discount rate over time are caused by changes in the mix of the reserves on the entire block of in force business. Business issued in the current year has little impact on the overall weighted-average original discount rate due to the size of our in-force business.
Information about interest on policy liabilities is shown in the following table.
Required Interest on Insurance Policy Liabilities
(Dollar amounts in thousands)
Required
Interest
Average Net
Insurance
Policy Liabilities
Average
Discount
Rate(1)
2024:
Life and Health $ 921,489 $ 16,502,133 5.6 %
Annuity 28,769 640,506 4.5
FHLB Funding Agreement 16,525 295,089 5.6
Deposit Funds
4,444 90,129 4.9
Total $ 971,227 $ 17,527,857 5.5
Increase in 2024 4.8 % 4.5 %
2023:
Life and Health $ 879,217 $ 15,739,423 5.6 %
Annuity 38,224 861,676 4.4
FHLB Funding Agreement 4,536 79,036 5.7
Deposit Funds
4,525 92,726 4.9
Total $ 926,502 $ 16,772,861 5.5
Increase in 2023 4.4 % 4.4 %
2022:
Life and Health $ 838,003 $ 14,957,728 5.6 %
Annuity 44,836 1,007,008 4.5
FHLB Funding Agreement 71 2,692 2.6
Deposit Funds
4,301 92,812 4.6
Total $ 887,211 $ 16,060,240 5.5
(1) Reflects the average discount rate applicable to the current period, which is used to accrue interest on the insurance policy liabilities for each of the years presented.
GL 2024 FORM 10-K
GLOBE LIFE INC.
Management's Discussion & Analysis
Realized Gains and Losses. Our life and health insurance companies collect premium income from policyholders for the eventual payment of policyholder benefits, sometimes paid many years or even decades in the future. Since benefits are expected to be paid in future periods, premium receipts in excess of current expenses are invested to provide for these obligations. For this reason, we hold a significant investment portfolio as a part of our core insurance operations. This portfolio consists primarily of high-quality fixed maturities containing an adequate yield to provide for the cost of carrying these long-term insurance product obligations. As a result, fixed maturities are generally held for long periods to support these obligations. Expected yields on these investments are taken into account when setting insurance premium rates and product profitability expectations.
Despite our intent to hold fixed maturity investments for a long period of time, investments are occasionally sold, exchanged, called, or experience a credit loss event, resulting in a realized gain or loss. Gains or losses are only secondary to our core insurance operations of providing insurance coverage to policyholders. In a bond exchange offer, bondholders may consent to exchange their existing bonds for another class of debt securities. The Company also has investments in certain limited partnerships, held under the fair value option, with fair value changes recognized in Realized gains (losses) in the Consolidated Statements of Operations.
Realized gains and losses can be significant in relation to the earnings from core insurance operations, and as a result, can have a material positive or negative impact on net income. The significant fluctuations caused by gains and losses can cause period-to-period trends of net income that are not indicative of historical core operating results or predictive of the future trends of core operations. Accordingly, they have no bearing on core insurance operations or segment results as we view operations. For these reasons, and in line with industry practice, we remove the effects of realized gains and losses when evaluating overall insurance operating results.
The following table summarizes our tax-effected realized gains (losses) by component for each of the three years ended December 31, 2024.
Analysis of Realized Gains (Losses), Net of Tax
(Dollar amounts in thousands, except for per share data)
Year Ended December 31,
2024 2023 2022
Amount Per
Share
Amount Per
Share Amount Per
Share
Fixed maturities:
Sales(3)
$ (9,290) $ (0.10) $ (59,463) $ (0.62) $ (44,792) $ (0.45)
Matured or other redemptions(1)
155 - (1,604) (0.02) 19,076 0.19
Provision for credit losses (2,590) (0.03) (5,621) (0.06) 306 -
Fair value option-change in fair value (13,206) (0.15) 11,931 0.12 (23,189) (0.23)
Mortgages
(3,138) (0.04) (4,427) (0.04) (761) (0.01)
Other investments
2,319 0.03 1,415 0.02 3,699 0.04
Total realized investment gains (losses)-investments
(25,750) (0.29) (57,769) (0.60) (45,661) (0.46)
Other gains (losses)(2)
6,642 0.08 5,885 0.06 (14,812) (0.15)
Total realized gains (losses)
$ (19,108) $ (0.21) $ (51,884) $ (0.54) $ (60,473) $ (0.61)
(1)During the three years ended December 31, 2024, 2023, and 2022, the Company recorded $105.6 million, $50.9 million, and $147.6 million, respectively, of exchanges of fixed maturity securities (noncash transactions) that resulted in $0, $(1.5) million, and $1.5 million, respectively, in realized gains (losses), net of tax.
(2)Other realized gains (losses) are primarily a result of changes in the fair value for assets held in rabbi trust.
(3)During the year ended December 31, 2023, the Company incurred a $52 million after-tax realized loss due to the disposal of holdings in Signature Bank New York and First Republic Bank as a result of the banks entering receivership.
GL 2024 FORM 10-K
GLOBE LIFE INC.
Management's Discussion & Analysis
Investment Acquisitions. Globe Life's investment policy calls for investing primarily in investment grade fixed maturities that meet our quality and yield objectives. We generally invest in securities with longer-term maturities because they more closely match the long-term nature of our life and health policy liabilities. We believe this strategy is appropriate since our expected future cash flows are generally stable and predictable and the likelihood that we will need to sell invested assets to raise cash is low.
The following table summarizes selected information for fixed maturity investments. The effective annual yield shown is based on the acquisition price and call features, if any, of the securities. For non-callable bonds, the yield is calculated to maturity date. For callable bonds acquired at a premium, the yield is calculated to the earliest known call date and call price after acquisition ("first call date"). For all other callable bonds, the yield is calculated to maturity date.
Fixed Maturity Acquisitions Selected Information
(Dollar amounts in thousands)
Year Ended December 31,
2024 2023 2022
Cost of acquisitions:
Investment-grade corporate securities $ 1,258,203 $ 967,588 $ 812,697
Investment-grade municipal securities 94,658 572,654 599,946
Other securities
29,577 - 7,577
Total fixed maturity acquisitions(1)
$ 1,382,438 $ 1,540,242 $ 1,420,220
Effective annual yield (one year compounded)(2)
5.93 % 6.13 % 5.18 %
Average life (in years, to next call)
29.4 18.0 13.5
Average life (in years, to maturity)
33.3 24.8 22.8
Average rating A- A A
(1)Fixed maturity acquisitions included unsettled trades of $3.2 million in 2024, $3.8 million in 2023, and $0 in 2022.
(2)Tax-equivalent basis, where the yield on tax-exempt securities is adjusted to produce a yield equivalent to the pretax yield on taxable securities.
For investments in callable bonds, the actual life of the investment will depend on whether the issuer calls the investment prior to the maturity date. Given our investments in callable bonds, the actual average life of our investments cannot be known at the time of the investment. Absent sales and "make-whole calls," however, the average life will not be less than the average life to next call and will not exceed the average life to maturity. Data for both of these average life measures is provided in the above chart.
During 2024 and 2023, acquisitions consisted primarily of corporate and municipal bonds with securities spanning a diversified range of issuers, industry sectors, and geographical regions. For the year ended December 31, 2024, we invested primarily in the industrial, financial, and utility sectors. For the entire portfolio, the taxable equivalent effective yield earned was 5.26%, up approximately 6 basis points from the yield in 2023. The increase in taxable equivalent effective yield was primarily due to new purchase yields exceeding the yield on dispositions and the average portfolio yield.
New cash flow available for investment has been primarily provided through our insurance operations, cash received on existing investments, and proceeds from dispositions. Dispositions of fixed maturities were $1.42 billion in 2024 and $853 million in 2023. Dispositions in 2024 included $462 million related to a coinsurance agreement to cede a majority of annuity business to a third-party insurer. Refer to Note-1 Significant Accounting Policies for further information.
GL 2024 FORM 10-K
GLOBE LIFE INC.
Management's Discussion & Analysis
In addition to the fixed maturity acquisitions, Globe Life invested in commercial mortgage loans and in other long-term investments. Other long-term investments primarily consist of investment funds. See Note-4 Investments for further discussion.
The following table summarizes Globe Life's other investment acquisitions of the following assets.
Other Investment Acquisitions
(Dollar amounts in thousands)
Year Ended December 31,
2024 2023
Limited partnerships
$ 238,812 $ 142,308
Commercial mortgage loans
174,517 158,823
Common stock
19,869 10,257
Convertible notes
2,850 3,950
Company-owned life insurance 200,000 -
Total
$ 636,048 $ 315,338
Since fixed maturities represent such a significant portion of our investment portfolio, 89% of total amortized cost net of allowance for credit losses at December 31, 2024, the remainder of the discussion of portfolio composition will focus on fixed maturities. Selected information concerning the fixed maturity portfolio is as follows:
Fixed Maturity Portfolio Selected Information
At December 31,
2024 2023
Average annual effective yield(1)
5.25% 5.23%
Average life, in years, to:
Next call(2)
15.1 14.6
Maturity(2)
19.3 18.6
Effective duration to:
Next call(2,3)
8.8 9.0
Maturity(2,3)
10.6 10.7
(1)Tax-equivalent basis. The yield on tax-exempt securities is adjusted to produce a yield equivalent to the pretax yield on taxable securities.
(2)Globe Life calculates the average life and duration of the fixed maturity portfolio two ways:
(a) based on the next call date which is the next call date for callable bonds and the maturity date for noncallable bonds; and
(b) based on the maturity date of all bonds, whether callable or not.
(3)Effective duration is a measure of the price sensitivity of a fixed-income security to a 1% change in interest rates.
GL 2024 FORM 10-K
GLOBE LIFE INC.
Management's Discussion & Analysis
Credit Risk Sensitivity. The following tables summarize certain information about the major corporate sectors and security types held in our fixed maturity portfolio at December 31, 2024 and 2023.
Fixed Maturities by Sector
December 31, 2024
(Dollar amounts in thousands)
Below Investment Grade Total Fixed Maturities % of Total
Fixed Maturities
Amortized
Cost, net Gross
Unrealized
Gains Gross
Unrealized
Losses Fair
Value Amortized
Cost, net Gross
Unrealized
Gains Gross
Unrealized
Losses Fair
Value At Amortized Cost, net At Fair Value
Corporates:
Financial
Insurance - life, health, P&C $ 38,584 $ 32 $ (7,801) $ 30,815 $ 2,817,161 $ 49,928 $ (206,943) $ 2,660,146 15 15
Banks 65,718 254 (3,506) 62,466 1,026,367 17,023 (59,795) 983,595 6 6
Other financial 74,973 - (14,917) 60,056 1,162,847 15,647 (146,305) 1,032,189 6 6
Total financial 179,275 286 (26,224) 153,337 5,006,375 82,598 (413,043) 4,675,930 27 27
Industrial
Energy 44,580 - (5,410) 39,170 1,318,501 33,825 (77,700) 1,274,626 7 7
Basic materials - - - - 1,147,932 20,121 (91,699) 1,076,354 6 6
Consumer, non-cyclical 640 - (3) 637 2,087,181 11,222 (255,241) 1,843,162 11 11
Other industrials 25,000 - (4,796) 20,204 1,089,118 14,847 (108,283) 995,682 6 6
Communications - - - - 832,355 12,085 (90,817) 753,623 4 4
Transportation - - - - 572,829 9,800 (38,953) 543,676 3 3
Consumer. cyclical 128,674 331 (28,378) 100,627 492,653 3,113 (75,592) 420,174 3 3
Technology 50,278 - (2,419) 47,859 341,407 597 (67,045) 274,959 2 2
Total industrial 249,172 331 (41,006) 208,497 7,881,976 105,610 (805,330) 7,182,256 42 42
Utilities 58,996 22 (6,797) 52,221 2,081,366 39,716 (118,007) 2,003,075 11 12
Total corporates
487,443 639 (74,027) 414,055 14,969,717 227,924 (1,336,380) 13,861,261 80 81
States, municipalities, and political divisions:
General obligations - - - - 909,765 3,695 (177,021) 736,439 5 4
Revenues - - - - 2,391,136 16,967 (357,738) 2,050,365 13 12
Total states, municipalities, and political divisions
- - - - 3,300,901 20,662 (534,759) 2,786,804 18 16
Other fixed maturities:
Government (U.S. and foreign) - - - - 438,636 19 (51,664) 386,991 2 2
Collateralized debt obligations 36,923 5,943 - 42,866 36,923 5,943 - 42,866 - -
Other asset-backed securities 4,754 10 - 4,764 79,237 39 (2,186) 77,090 - 1
Total fixed maturities
$ 529,120 $ 6,592 $ (74,027) $ 461,685 $ 18,825,414 $ 254,587 $ (1,924,989) $ 17,155,012 100 100
GL 2024 FORM 10-K
GLOBE LIFE INC.
Management's Discussion & Analysis
Fixed Maturities by Sector
December 31, 2023
(Dollar amounts in thousands)
Below Investment Grade Total Fixed Maturities % of Total
Fixed Maturities
Amortized
Cost Gross
Unrealized
Gains Gross
Unrealized
Losses Fair
Value Amortized
Cost Gross
Unrealized
Gains Gross
Unrealized
Losses Fair
Value At Amortized Cost, net At Fair Value
Corporates:
Financial
Insurance - life, health, P&C $ 107,010 $ - $ (12,472) $ 94,538 $ 2,413,685 $ 61,715 $ (163,455) $ 2,311,945 13 13
Banks 36,906 - (4,401) 32,505 1,327,272 25,019 (71,714) 1,280,577 7 7
Other financial 74,965 - (25,255) 49,710 1,287,194 25,634 (153,171) 1,159,657 7 7
Total financial 218,881 - (42,128) 176,753 5,028,151 112,368 (388,340) 4,752,179 27 27
Industrial
Energy 44,652 - (7,481) 37,171 1,446,480 58,637 (62,324) 1,442,793 8 8
Basic materials - - - - 1,166,385 39,248 (64,501) 1,141,132 6 6
Consumer, non-cyclical - - - - 2,096,651 32,071 (160,828) 1,967,894 11 11
Other industrials 5,185 110 - 5,295 1,101,059 32,541 (78,817) 1,054,783 6 6
Communications - - - - 868,131 21,006 (73,323) 815,814 4 5
Transportation 8,403 - (415) 7,988 534,468 21,113 (24,649) 530,932 3 3
Consumer. cyclical 136,343 - (25,059) 111,284 515,169 4,941 (57,735) 462,375 3 3
Technology 32,543 625 - 33,168 280,668 3,521 (44,670) 239,519 1 1
Total industrial 227,126 735 (32,955) 194,906 8,009,011 213,078 (566,847) 7,655,242 42 43
Utilities 34,698 722 (1,523) 33,897 2,017,967 73,925 (94,130) 1,997,762 11 11
Total corporates 480,705 1,457 (76,606) 405,556 15,055,129 399,371 (1,049,317) 14,405,183 80 81
States, municipalities, and political divisions:
General obligations - - - - 887,013 8,526 (135,003) 760,536 4 4
Revenues - - - - 2,409,292 38,820 (268,326) 2,179,786 13 12
Total states, municipalities, and political divisions
- - - - 3,296,305 47,346 (403,329) 2,940,322 17 16
Other fixed maturities:
Government (U.S., municipal, and foreign) - - - - 442,903 8 (42,654) 400,257 2 2
Collateralized debt obligations 37,110 5,036 - 42,146 37,110 5,036 - 42,146 - -
Other asset-backed securities 11,696 - (409) 11,287 86,352 3 (4,057) 82,298 1 1
Total fixed maturities $ 529,511 $ 6,493 $ (77,015) $ 458,989 $ 18,917,799 $ 451,764 $ (1,499,357) $ 17,870,206 100 100
GL 2024 FORM 10-K
GLOBE LIFE INC.
Management's Discussion & Analysis
Corporate securities, which consist of bonds and redeemable preferred stocks, were the largest component of the fixed maturity portfolio as of December 31, 2024, representing 80% of amortized cost, net, and 81% of fair value. The remainder of the portfolio is invested primarily in securities issued by the U.S. government and U.S. municipalities. The Company holds insignificant amounts in foreign government bonds, collateralized debt obligations, asset-backed securities, and mortgage-backed securities. Corporate securities are diversified over a variety of industry sectors and issuers. At December 31, 2024, the total fixed maturity portfolio consisted of 1,014 issuers.
Fixed maturities had a fair value of $17.2 billion at December 31, 2024, compared with $17.9 billion at December 31, 2023. The net unrealized loss position in the fixed-maturity portfolio increased from $1.0 billion at December 31, 2023 to $1.7 billion at December 31, 2024 due to an increase in market rates during the period.
For more information about our fixed maturity portfolio by component at December 31, 2024 and December 31, 2023, including a discussion of allowance for credit losses, an analysis of unrealized investment losses, and a schedule of maturities, see Note 4-Investments.
An analysis of the fixed maturity portfolio by composite quality rating at December 31, 2024 and December 31, 2023, is shown in the following tables. The company uses the NAIC designation for credit quality ratings. The NAIC designation is generally determined using the second lowest rating available from nationally recognized statistical rating organizations (“NRSRO”) when 3 or more ratings are available and the lowest rating when 2 or fewer rating are available. When NRSRO ratings are unavailable the rating may be assigned by the Securities Valuation Office (“SVO”) of the NAIC.
Fixed Maturities by Rating
At December 31, 2024
(Dollar amounts in thousands)
Amortized Cost, net % of Total Fair
Value % of Total Average Composite Quality Rating on Amortized Cost, net
Investment grade:
AAA $ 968,220 5 $ 855,165 5
AA 3,225,044 17 2,691,908 15
A 5,508,446 29 5,147,203 30
BBB+ 3,267,101 17 3,040,313 18
BBB 4,087,323 22 3,799,696 22
BBB- 1,240,160 7 1,159,042 7
Total investment grade
18,296,294 97 16,693,327 97 A-
Below investment grade:
BB 397,823 2 349,028 2
B 92,176 1 67,593 1
Below B 39,121 - 45,064 -
Total below investment grade
529,120 3 461,685 3 BB-
$ 18,825,414 100 $ 17,155,012 100
Weighted average composite quality rating
A-
GL 2024 FORM 10-K
GLOBE LIFE INC.
Management's Discussion & Analysis
Fixed Maturities by Rating
At December 31, 2023
(Dollar amounts in thousands)
Amortized
Cost, net % of Total Fair
Value
% of Total Average Composite Quality Rating on Amortized Cost
Investment grade:
AAA $ 952,822 5 $ 880,729 5
AA 3,179,618 17 2,789,626 15
A 5,118,085 27 4,976,280 28
BBB+ 3,615,102 19 3,495,898 19
BBB 4,278,786 23 4,056,833 23
BBB- 1,243,875 6 1,211,851 7
Total investment grade
18,388,288 97 17,411,217 97 A-
Below investment grade:
BB 450,503 3 376,912 3
B 37,896 - 35,929 -
Below B 41,112 - 46,148 -
Total below investment grade
529,511 3 458,989 3 BB
$ 18,917,799 100 $ 17,870,206 100
Weighted average composite quality rating
A-
The overall quality rating of the portfolio is A-, the same as of year end 2023. Fixed maturities rated BBB are 46% of the total portfolio at December 31, 2024, down from 48% at December 31, 2023. While this ratio is high relative to our peers, it is at its lowest level since 2007 and we have limited exposure to higher-risk assets such as derivatives, equities, and asset-backed securities. Additionally, the Company does not participate in securities lending and has no off-balance sheet investments as of December 31, 2024. Of our fixed maturity purchases, BBB securities generally provide the Company with the best risk-adjusted, capital-adjusted returns largely due to our ability to hold securities to maturity regardless of fluctuations in interest rates or equity markets.
An analysis of changes in our portfolio of below-investment grade fixed maturities at amortized cost, net of allowance for credit losses is as follows:
Below-Investment Grade Fixed Maturities
(Dollar amounts in thousands)
Year Ended
December 31,
2024 2023
Balance at beginning of period
$ 529,511 $ 542,497
Downgrades by rating agencies 101,018 117,731
Upgrades by rating agencies (76,754) (32,540)
Dispositions
(40,907) (95,060)
Acquisitions
20,292 -
Provision for credit losses (3,280) (6,811)
Amortization and other (760) 3,694
Balance at end of period
$ 529,120 $ 529,511
Our investment policy calls for investing primarily in fixed maturities that are investment grade and meet our quality and yield objectives. Thus, the balance of below-investment grade issues is primarily the result of ratings
GL 2024 FORM 10-K
GLOBE LIFE INC.
Management's Discussion & Analysis
downgrades of existing holdings. Below-investment grade bonds at amortized cost, net of allowance for credit losses, were 3% of total fixed maturities at amortized cost as of December 31, 2024. Globe Life invests long term and as such, one of our key criterion in our investment process is to select issuers that are anticipated to weather multiple financial cycles.
OPERATING EXPENSES
Operating expenses are classified into two categories: insurance administrative expenses and expenses of the Parent Company. Insurance administrative expenses generally include expenses incurred after a policy has been issued. As these expenses relate to premium for a given period, management measures the expenses as a percentage of premium income. The Company also views stock-based compensation expense as a Parent Company expense. Expenses associated with the issuance of our insurance policies are reflected as acquisition expenses and included in the determination of underwriting margin.
The following table is an analysis of operating expenses for the three years ended December 31, 2024.
Operating Expenses Selected Information
(Dollar amounts in thousands)
2024 2023 2022
Amount % of
Premium Amount % of
Premium Amount % of
Premium
Insurance administrative expenses:
Salaries $ 129,369 2.8 $ 119,699 2.7 $ 129,711 3.0
Other employee costs 36,176 0.8 35,905 0.8 42,319 1.0
Information technology costs 80,555 1.7 64,998 1.5 55,526 1.3
Legal costs 30,478 0.6 15,335 0.3 12,056 0.2
Other administrative costs 65,852 1.4 65,224 1.5 59,729 1.4
Total insurance administrative expenses 342,430 7.3 301,161 6.8 299,341 6.9
Parent company expense 12,400 10,866 11,156
Stock compensation expense 40,118 30,736 35,650
Legal proceedings 21,575 900 2,496
Non-operating expenses 2,620 4,170 5,311
Total operating expenses, per Consolidated Statements of Operations
$ 419,143 $ 347,833 $ 353,954
2024 2023 2022
Amount % Amount % Amount %
Total insurance administrative expenses increase (decrease) over prior year $ 41,269 13.7 $ 1,820 0.6 $ 27,710 10.2
Total operating expenses increase (decrease) over prior year 71,310 20.5 (6,121) (1.7) 31,925 9.9
Total operating expenses for December 31, 2024 increased in comparison with the prior year primarily due to increases in insurance administrative expenses as well as stock compensation and legal proceedings. Insurance administrative expenses increased $41.3 million primarily due to higher information technology costs, legal costs including compliance and security and employee costs, which includes salaries and other. Insurance administrative expenses as a percent of premium were 7.3% for the year ended December 31, 2024 compared to 6.8% for the same period in 2023.
GL 2024 FORM 10-K
GLOBE LIFE INC.
Management's Discussion & Analysis
SHARE REPURCHASES
Globe Life has an ongoing share repurchase program that began in 1986. The share repurchase program is reviewed with the Board of Directors by management quarterly, and continues indefinitely unless and until the Board of Directors decides to suspend, terminate or modify the program. On November 18, 2024, the Board of Directors authorized the repurchase of up to $1.8 billion under the Company's existing share repurchase program. Management generally determines the amount of repurchases based on the amount of the excess cash flows and other available sources after the payment of dividends to the Parent Company shareholders, general market conditions, and other alternative uses. Since implementing our share repurchase program in 1986, we have used $10.3 billion to repurchase Globe Life Inc. common shares after determining that the repurchases provide a greater risk-adjusted after-tax return than other investment alternatives.
Excess cash flow at the Parent Company is primarily comprised of dividends received from the insurance subsidiaries less interest expense paid on its debt and other limited operating activities. Additionally, when stock options are exercised, proceeds from these exercises and the resulting tax benefit are used to repurchase additional shares on the open market to minimize dilution as a result of the option exercises.
The following table summarizes share repurchases for each of the last three years.
Analysis of Share Purchases
(Amounts in thousands)
2024 2023 2022
Purchases with: Shares Amount Shares Amount Shares Amount
Excess cash flow at the Parent Company(1)
10,086 $ 945,637 3,369 $ 380,103 3,322 $ 335,145
Option exercise proceeds
501 48,026 1,080 127,155 1,103 119,493
Total 10,587 $ 993,663 4,449 $ 507,258 4,425 $ 454,638
(1)Excludes excise tax on the repurchase of treasury stock of $8 million in 2024, $4 million in 2023, and $0 in 2022.
During 2024, the amount of share repurchases was higher as we accelerated repurchases given favorable market conditions and the use of additional capital raised during the year. Refer to Note 12-Debt for further details. Throughout the remainder of this discussion, share repurchases will only refer to those made from excess cash flow at the Parent Company and exclude anti-dilutive share repurchases related to stock options exercised.
FINANCIAL CONDITION
Liquidity. Liquidity provides Globe Life with the ability to meet on demand the cash commitments required to support our business operations and meet our financial obligations. Our liquidity is primarily derived from multiple sources: positive cash flow from operations, a portfolio of marketable securities, a revolving credit facility, commercial paper, and advances from the Federal Home Loan Bank.
Insurance Subsidiary Liquidity. The operations of our insurance subsidiaries have historically generated substantial cash inflows in excess of immediate cash needs. Cash inflows for the insurance subsidiaries primarily include premium and investment income. In addition to investment income, maturities and scheduled repayments in the investment portfolio are cash inflows. Cash outflows from operations include policy benefit payments, commissions, administrative expenses, and taxes. A portion of cash inflows in the current year will provide for the payment of future policy benefits and are invested primarily in long-term fixed maturities as they better match the long-term nature of these obligations. Excess cash available from the insurance subsidiaries’ operations is generally distributed as a dividend to the Parent Company, subject to regulatory restrictions. The dividends are generally paid in amounts equal to the subsidiaries’ prior year statutory net income excluding realized capital gains. While the insurance subsidiaries annually generate more operating cash inflows than cash outflows, the companies also have the entire available-for-sale fixed maturity investment portfolio available to create additional cash flows if required.
Four of our insurance subsidiaries are members of the FHLB of Dallas. FHLB membership provides the insurance subsidiaries with access to various low-cost collateralized borrowings and funding agreements. While not the only
GL 2024 FORM 10-K
GLOBE LIFE INC.
Management's Discussion & Analysis
source of liquidity, the FHLB could provide the insurance subsidiaries with an additional source of liquidity, if needed. Refer to Note 12-Debt for further details.
Parent Company Liquidity. An important source of Parent Company liquidity is the dividends from its insurance subsidiaries. These dividends are received throughout the year and are used by the Parent Company to pay dividends on common and preferred stock, interest and principal repayment requirements on Parent Company debt, and operating expenses of the Parent Company.
Year Ended December 31,
(Amounts in Thousands)
Projected 2025 2024 2023 2022
Liquidity Sources:
Dividends from Subsidiaries $ 724,000 $ 692,690 $ 459,535 $ 407,042
Excess Cash Flows(1)
810,000 455,013 416,081 358,981
(1)Excess cash flows are reported gross of shareholder dividends. For the year ended December 31, 2024, 2023, and 2022, shareholder dividends were $85 million, $84 million, and $81 million, respectively.
For more information on the restrictions on the payment of dividends by subsidiaries, see the Restrictions section of Note 13-Shareholders' Equity. Although these restrictions exist, dividend availability from subsidiaries historically has been more than sufficient for the cash flow needs of the Parent Company.
Dividends from subsidiaries and excess cash flows are projected to be higher in 2025 than in 2024 primarily due to improved earnings from favorable mortality trends and growth in business, as well as positive impacts from lower reserve increases under statutory accounting impacting the 2024 statutory earnings that derive the 2025 dividends. Additional sources of liquidity for the Parent Company are cash, intercompany receivables, intercompany borrowings, public debt markets, term loans, and a revolving credit facility. See Schedule II for more information. The credit facility is discussed below.
Short-Term Borrowings. An additional source of Parent Company liquidity is a credit facility with a group of lenders. The facility was amended on March 29, 2024, resulting in an increased capacity of $250 million. The facility allows for unsecured borrowings and stand-by letters of credit up to $1 billion, which could be increased up to $1.25 billion. While the Parent Company may request the increase, it is not guaranteed. The updated five-year credit agreement will mature on March 29, 2029. Up to $250 million in letters of credit can be issued against the facility. The facility serves as a back-up line of credit for a commercial paper program under which commercial paper may be issued at any time, with total commercial paper outstanding not to exceed the facility maximum less any letters of credit issued. Interest charged on the commercial paper program resembles variable rate debt due to its short term nature. As of December 31, 2024, we had available $466 million of additional borrowing capacity under this facility, compared with $316 million a year earlier. Globe Life has consistently been able to issue commercial paper as needed during the three years ended December 31, 2024. As of December 31, 2024, the Parent Company was in full compliance with all covenants related to the aforementioned debt.
As a part of the credit facility, Globe Life has stand-by letters of credit. These letters are issued among our insurance subsidiaries, one of which is an offshore captive reinsurer, and have no impact on company obligations as a whole. Any future regulatory changes that restrict the use of off-shore captive reinsurers might require Globe Life to obtain third-party financing, which could cause an increase in financing costs. On March 29, 2023, the letters of credit were amended to reduce the amount outstanding from $125 million to $115 million. The outstanding letters of credit remained at $115 million at December 31, 2024.
Through internally generated cash flow and the credit facility the Parent Company expects to have readily available funds for 2025 and the foreseeable future to conduct its operations and to maintain target capital ratios in the insurance subsidiaries. In the unlikely event that more liquidity is needed, the Company could generate additional funds through multiple sources including, but not limited to, the issuance of debt, an additional short-term credit facility, and intercompany borrowings. Refer to Note 5-Commitments and Contingencies and the discussion surrounding the Company's obligations over the next five years. As noted above, the Parent Company had access
GL 2024 FORM 10-K
GLOBE LIFE INC.
Management's Discussion & Analysis
to $90 million of liquid assets available as of December 31, 2024. This liquidity is available to the Company in the event additional funds are needed to support the targeted capital levels within our insurance subsidiaries.
Consolidated Liquidity. Consolidated net cash inflows provided from operations were $1.40 billion in 2024, compared with $1.48 billion in 2023. The decrease is attributable to routine fluctuations in the settlement of operating activities. In addition to cash inflows from operations, our insurance companies received proceeds from dispositions of fixed maturities, mortgage loans, and other long-term investments in the amount of $1.52 billion in 2024. The Company sold shorter term securities and reinvested in longer term investments, extending duration and taking advantage of higher current interest rates during the year ended December 31, 2024. As noted under the caption Credit Facility in Note 12-Debt, the Parent Company has in place a revolving credit facility. The insurance companies have no additional outstanding credit facilities.
Cash and short-term investments were $250 million at the end of 2024 compared with $185 million at the end of 2023. In addition to these liquid assets, $17.2 billion (fair value at December 31, 2024) of fixed income securities are available for sale in the event of an unexpected need. Approximately $1.3 billion, at fair value, are pledged for outstanding FHLB advances and reinsurance. Further, approximately 98% of our fixed income securities are publicly traded, freely tradable under SEC Rule 144, or qualified for resale under SEC Rule 144A. While our fixed income securities are classified as available for sale, we have the ability and general intent to hold any securities to recovery or maturity. Our strong cash flows from operations, ongoing investment maturities, and available liquidity under our credit facility make any need to sell securities for liquidity highly unlikely.
Capital Resources. The Parent Company's capital structure consists of short-term debt (the commercial paper facility and current maturities of long-term debt), long-term debt, and shareholders’ equity. It does not include short-term FHLB borrowings, which are obligations of the insurance subsidiaries and typically repaid over the course of the year.
Debt: The carrying value of the long-term debt was $2.3 billion at December 31, 2024 and $1.6 billion at December 31, 2023. A complete analysis and description of long-term debt issues outstanding is presented in Note 12-Debt.
Financing costs consist primarily of interest on our various debt instruments. The table below presents the components of financing costs and reconciles interest expense per the Consolidated Statements of Operations.
Analysis of Financing Costs
(Dollar amounts in thousands)
2024 2023 2022
Interest on debt
$ 77,258 $ 72,641 $ 80,481
Interest on term loan 13,823 7,684 -
Interest on short-term debt 35,979 21,958 9,875
Other 32 33 39
Financing costs
$ 127,092 $ 102,316 $ 90,395
In 2024, financing costs increased 24% compared with the prior year. The increase in financing costs is primarily due to higher average balances in the current year compared to the prior year. We increased durations on commercial paper issuances during 2024 due to market considerations. More information on our debt transactions is disclosed in the Financial Condition section of this report and in Note 12-Debt.
Subsidiary Capital: The National Association of Insurance Commissioners (NAIC) has established a risk-based factor approach for determining threshold risk-based capital levels for all insurance companies. This approach was designed to assist the regulatory bodies in identifying companies that may require regulatory attention. A Risk-Based Capital (RBC) ratio is typically determined by dividing adjusted total statutory capital by the amount of risk-based capital determined using the NAIC’s factors. If a company’s RBC ratio approaches two times the RBC amount, the company must file a plan with the NAIC for improving its capital levels (this level is commonly referred to as “Company Action Level” RBC). Companies typically hold a multiple of the Company Action Level RBC depending on their particular business needs and risk profile.
GL 2024 FORM 10-K
GLOBE LIFE INC.
Management's Discussion & Analysis
Our goal is to maintain statutory capital within our insurance subsidiaries at levels necessary to support our current ratings. For 2025, Globe Life has targeted a consolidated Company Action Level RBC ratio of 300% to 320%. The Company has concluded that this capital level is more than adequate and sufficient to support its current ratings, given the nature of its business and its risk profile. For 2024, our consolidated Company Action Level RBC ratio is expected to be approximately 310%. The Parent Company is committed to maintaining the targeted consolidated RBC ratio at its insurance subsidiaries and has sufficient liquidity available to provide additional capital if necessary.
Shareholder's Equity: As noted under the caption Analysis of Share Purchases within this report, we have an ongoing share repurchase program.
Globe Life has continually increased the quarterly dividend on its common shares over the past three years.
Year Ended December 31,
Projected 2025 2024 2023 2022
Quarterly dividend by annual year $ 0.2700 $ 0.2400 $ 0.2250 $ 0.2075
Shareholders’ equity was $5.3 billion at December 31, 2024. This compares to $4.5 billion at December 31, 2023, an increase of $819 million or 18%. Shareholders' equity increased $537 million, or 14%, during 2023 from $3.9 billion in 2022.
During 2024, shareholders’ equity increased as a result of net income of $1.1 billion, but was offset by share repurchases of $946 million and an additional $48 million in share repurchases to offset the dilution from stock option exercises. Additionally, the balance of AOCI increased $743 million primarily due to increased interest rates and discount rates over the period. During 2023, shareholders' equity increased as a result of net income of $971 million, but was offset by share repurchases of $380 million and an additional $127 million in share repurchases to offset the dilution from stock option exercises. Additionally, the balance of AOCI increased $18 million due to increased interest rates and discount rates over the period.
We plan to use excess cash available at the Parent Company as efficiently as possible in the future. Excess cash flow, as we define it, results primarily from the dividends received by the Parent Company from its insurance subsidiaries less the interest paid on debt. The cash received by the Parent Company from our insurance subsidiaries is after they have made substantial investments during the year to grow the business. Possible uses of excess cash flow include, but are not limited to, share repurchases, acquisitions, shareholder dividend payments, investments in securities, or repayment of short-term debt. We will determine the best use of excess cash after ensuring that targeted capital levels are maintained in our insurance subsidiaries. If market conditions are favorable, we currently expect that share repurchases will continue to be a primary use of those funds.
Future policy benefits are computed using current discount rates with the impact of changes in discount rates included in accumulated other comprehensive income. Additionally, the liability for future policy benefits is calculated using net premiums rather than gross premiums. Given that gross premiums are considerably higher than net premiums for our business, as seen in Note 6-Policy Liabilities, the measurement of the liability is higher than what it would be had it been computed using gross premiums. This is an important consideration when analyzing shareholders' equity.
We maintain a significant available-for-sale fixed maturity portfolio to support our insurance policy liabilities. Current accounting guidance requires that we revalue our portfolio to fair market value at the end of each accounting period. The period-to-period changes in fair value, net of their associated impact on income tax, are reflected directly in shareholders’ equity. Changes in the fair value of the portfolio can result from changes in market rates.
While a majority of invested assets are revalued, accounting rules do not permit interest-bearing insurance policy liabilities to be valued at fair value in a consistent manner as that of assets, with changes in value applied directly to shareholders’ equity. Due to the size of our policy liabilities in relation to our shareholders’ equity, an inconsistency exists in measurement, which may have a material impact on the reported value of shareholders’ equity. Fluctuations in interest rates cause undue volatility in the period-to-period presentation of our shareholders’ equity, capital structure, and financial ratios. Due to the long-term nature of our fixed maturity investments and liabilities
GL 2024 FORM 10-K
GLOBE LIFE INC.
Management's Discussion & Analysis
and the strong cash flows consistently generated by our insurance subsidiaries, we have the ability to hold our securities to maturity. As such, we do not expect to incur losses due to fluctuations in market value of fixed maturities caused by market rate changes and temporarily illiquid markets. Accordingly, our management, credit rating agencies, lenders, many industry analysts, and certain other financial statement users prefer to remove the effect of this accounting rule when analyzing our balance sheet, capital structure, and financial ratios.
Financial Strength Ratings. The financial strength of our major insurance subsidiaries is rated by Standard & Poor’s and A. M. Best. The following table presents these ratings for our five largest insurance subsidiaries at December 31, 2024.
Standard
& Poor’s A.M.
Best
Liberty National Life Insurance Company AA- A
Globe Life And Accident Insurance Company AA- A
United American Insurance Company AA- A
American Income Life Insurance Company AA- A
Family Heritage Life Insurance Company of America NR A
A.M. Best states that it assigns an A (Excellent) rating to insurance companies that have, in its opinion, an excellent ability to meet their ongoing insurance obligations.
The AA financial strength rating category is assigned by Standard & Poor’s Corporation (S&P) to those insurers which have very strong capacity to meet its financial commitments. The plus sign (+) or minus sign (-) shows the relative standing within the major rating category.
OTHER ITEMS
Litigation. For more information concerning litigation, please refer to Note 5-Commitments and Contingencies.
CRITICAL ACCOUNTING ESTIMATES
Application of Critical Accounting Estimates. Critical accounting estimates are those estimates made in accordance with GAAP that involve a significant level of estimation uncertainty and have had or are reasonably likely to have a material impact on the financial condition or results of operations. The preparation of financial statements in conformity with GAAP requires the application of accounting estimates that often involve a significant degree of judgment. Management reviews these key estimates and assumptions used in the preparation of financial statements on a timely basis. If management determines that modifications are necessary due to current facts and circumstances, the Company’s results of operations and financial position as reported in the consolidated financial statements could possibly change significantly. Information on our accounting policies is disclosed in Note 1-Significant Accounting Policies.
Future Policy Benefits. Considerable information concerning the policies, procedures, and other relevant data related to the valuation of our liability for future policy benefits is presented in Note 1-Significant Accounting Policies and Note 6-Policy Liabilities.
The liability for future policy benefits for traditional and limited-payment long duration life and health products comprises the vast majority of the total liability for future policy benefits for the Company. The liability is determined each reporting period based on the net level premium method. This method requires the liability for future policy benefits to be calculated as the present value of estimated future policyholder benefits and the related termination expenses, less the present value of estimated future net premiums to be collected from policyholders.
The Company reviews, and updates as necessary, its cash flow assumptions (mortality, morbidity, and lapses) used to calculate the change in the liability for future policy benefits at least annually. These cash flow assumptions are reviewed at the same time every year, or more frequently, if suggested by experience. If cash flow assumptions are
GL 2024 FORM 10-K
GLOBE LIFE INC.
Management's Discussion & Analysis
changed, the net premium ratio is recalculated from the original issue date, or the Transition Date, using actual experience and projected future cash flows. As cash flow assumptions are changed, the liability for future policy benefits is adjusted with changes recognized in policyholder benefits on the Consolidated Statements of Operations.
The following table illustrates the sensitivity of our liability for future policy benefits, including the corresponding pre-tax impact on OCI, and net income, as of December 31, 2024, to changes in cash flow assumptions. This information is useful in understanding the potential financial impact on our financial statements from changes in these items and the expected impact to our liability for future policy benefits. We could experience impacts that are more or less significant than noted in the following analysis; however the sensitivities provide insight regarding the direction and magnitude of those potential impacts.
At December 31, 2024
(Dollar amounts in thousands)
Assumptions
Sensitivity
Future policy benefits
OCI(1)
Net Income
Mortality
1% increase
$ 40,722 $ (1,805) $ (38,917)
1% decrease
(40,993) 2,431 38,562
Morbidity
5% increase
68,461 (895) (67,566)
5% decrease
(54,082) 185 53,897
Lapses
10% increase
(165,378) 82,937 82,441
10% decrease
176,216 (90,799) (85,417)
(1)Represents the associated impact to OCI from updating the net premium ratio based upon the cash flow assumptions and the remeasurement of the liability for future policy benefits using the current discount rate.
The liability for future policy benefits is discounted using a current upper-medium grade fixed-income instrument yield that reflects the duration characteristics of the liability for future policy benefits. Accordingly, the discount rate assumption is key in determining the change in the value of the liability for future benefits for long duration life and health contracts. Since the liability for future policy benefits for traditional and limited-payment long duration life and health products comprises approximately 93% of the total liability for future policy benefits, it is subject to interest rate risk. A decrease in discount rates will cause an increase in the obligation with a corresponding change in AOCI.
The following table illustrates the interest rate sensitivity of our liability for future policy benefits as of December 31, 2024. This table measures the effect of a parallel shift in discount rates on the liability. The data measures the change in reported value arising from an immediate change in rates in increments of 50 and 100 basis points, which would be recorded as a component of OCI.
Value of Liability for Future Policy Benefits
(Dollar amounts in thousands)
At December 31,
Change in Discount Rates(1)
(200) $ 27,004,267
(100) 22,070,140
(50) 20,129,615
0 18,457,263
50 17,006,840
100 15,741,352
200 13,651,611
(1) In basis points.
GL 2024 FORM 10-K
GLOBE LIFE INC.
Management's Discussion & Analysis
Deferred Acquisition Costs. Certain costs of acquiring new insurance business are deferred and recorded as an asset. These costs are capitalized on a grouped contract basis and amortized over the expected term of the related contracts, and are essential for the acquisition of new insurance business.
Deferred Acquisition Costs (DAC) are amortized on a constant-level basis over the expected term of the grouped contracts, with the related expense included in amortization of deferred acquisition costs on the Consolidated Statements of Operations. The in-force metric used to compute the DAC amortization rate is annualized premium in force. The assumptions used to amortize acquisition costs include mortality, morbidity, and lapses, and are consistent with those used in calculating the liability for future policy benefits.
Value of business acquired (VOBA) is amortized on a basis that is consistent with DAC, as described above, and is subject to periodic recoverability and loss recognition testing to determine if there is a premium deficiency. These tests evaluate whether the present value of future contract-related cash flows will support the capitalized VOBA asset. These cash flows consist primarily of premium income, less benefits and expenses. The present value of these cash flows, less the reserve liability, is then compared with the unamortized balance. In the event the estimated present value of net cash flows is less, the deficiency would be recognized by a charge to earnings and either a reduction of unamortized acquisition costs or an increase in the liability for future benefits.
Policy Claims and Other Benefits Payable. This liability consists of known benefits currently payable and an estimate of claims that have been incurred but not yet reported to us. The estimate of unreported claims is based on prior experience and is made after careful evaluation of all information available to us. However, the factors upon which these estimates are based can be subject to change from historical patterns. Factors involved include the litigation environment, regulatory mandates, and the introduction of policy types for which claim patterns are not well established, and medical trend rates and medical cost inflation as they affect our health claims. Changes in these estimates, if any, are reflected in the earnings of the period in which the adjustment is made. The Company concludes that the estimates used to produce the liability for claims and other benefits, including the estimate of unsubmitted claims, are the most appropriate under the circumstances. However, there is no certainty that the resulting stated liability will be our ultimate obligation. At this time, we do not expect any change in this estimate to have a material impact on earnings or financial position consistent with our historical experience. There were no significant changes in the claims process in the current year.
Valuation of Fixed Maturities. We hold a substantial investment in high-quality fixed maturities to provide for the funding of our future policy contractual obligations over long periods of time. While these securities are generally expected to be held to maturity, they are classified as available for sale and are sold from time to time to maximize risk-adjusted, capital-adjusted returns or for other general purposes. We report this portfolio at fair value. Fair value is the price that we would expect to receive upon sale of the asset in an orderly transaction. The fair value of the fixed maturity portfolio is primarily affected by changes in interest rates in financial markets. Because of the size of our fixed maturity portfolio and the long average life, small changes in rates can have a significant effect on the portfolio and the reported financial position of the Company. This impact is disclosed in 100 basis point increments under the caption Market Risk Sensitivity in this report. However, as discussed under the caption Financial Condition in this report, the Company regards these unrealized fluctuations in value as having no meaningful impact on our actual financial condition and, as such, we remove them from consideration when viewing our financial position and financial ratios.
At times, the values of our fixed maturities can also be affected by illiquidity in the financial markets. Illiquidity may contribute to a spread widening, and accordingly to unrealized losses, on many securities that we would expect to be fully recoverable. Even though our fixed maturity portfolio is available for sale, we have the ability and general intent to hold the securities until maturity as a result of our strong and stable cash flows generated from our insurance products. Considerable information concerning the policies, procedures, classification levels, and other relevant data concerning the valuation of our fixed maturity investments is presented in Note 1-Significant Accounting Policies and in Note 4-Investments under the captions Fair Value Measurements in both notes. There were no significant changes in the valuation process in the current year.
Market Risk Sensitivity. Globe Life's investment securities are exposed to interest rate risk, meaning the effect of changes in financial market interest rates on the current fair value of the Company’s investment portfolio. Since 88% of the carrying value of our investments is attributable to fixed maturity investments and these investments are
GL 2024 FORM 10-K
GLOBE LIFE INC.
Management's Discussion & Analysis
predominately fixed-rate investments, the portfolio is highly subject to market risk. Declines in market interest rates generally result in the fair value of the investment portfolio rising, and increases in interest rates cause the fair value to decline. Under normal market conditions, we are not concerned about unrealized losses that are interest rate driven since we would not expect to realize them. Globe Life does not generally intend to sell the securities prior to maturity and, likely, will not be required to sell the securities prior to recovery of amortized cost. The long-term nature of our insurance policy liabilities and strong operating cash-flow substantially mitigate any future need to liquidate portions of the portfolio.
The following table illustrates the interest rate sensitivity of our fixed maturity portfolio at December 31, 2024. This table measures the effect of a parallel shift in interest rates (as represented by the U.S. Treasury curve) on the fair value of the fixed maturity portfolio. The data measures the change in fair value arising from an immediate and sustained change in interest rates in increments of 100 basis points.
Market Value of Fixed Maturity Portfolio
(Dollar amounts in thousands)
At December 31,
Change in Interest Rates(1)
(200) $ 20,877,000
(100) 18,909,000
0 17,155,000
100 15,588,000
200 14,186,000
(1) In basis points.
Investments: Allowance for Credit Losses. We continually monitor our investment portfolio for investments where fair value has declined below carrying value to determine if a credit loss event has occurred. When a credit event does occur, an allowance for credit loss is recorded and the corresponding provision is recognized in the Consolidated Statements of Operations in Realized Gains or Losses. Non-credit related fluctuations in the fair value are recorded in Other Comprehensive Income. The policies and procedures that we use to evaluate and account for allowance for credit losses are disclosed in Note 1-Significant Accounting Policies and the discussions under the captions Investments and Realized Gains and Losses in this report. While every effort is made to make the best estimate of status and value with the information available regarding an allowance for credit loss, it is difficult to predict the future prospects of a distressed or impaired security.
Defined Benefit Pension Plans. We maintain funded defined benefit plans covering most full-time employees. We also have an unfunded nonqualified defined benefit plan covering a limited number of officers. Our obligations under these plans are determined actuarially based on specified actuarial assumptions. In accordance with GAAP, an expense is recorded each year as these pension obligations grow due to the increase in the service period of employees and the interest cost associated with the passage of time. These obligations are offset, at least in part, by the growth in value of the assets in the funded plans. At December 31, 2024, our gross liability under these plans was $635 million, but was offset by assets of $615 million.
The actuarial assumptions used in determining our obligations/expenses for pensions include: employee mortality and turnover, retirement age, the expected return on plan assets, projected salary increases, and the discount rate at which future obligations could be settled. Additionally, a corridor approach is used to amortize any unrecognized gains or losses outside the corridor (the standard 10% of the greater of plan PBO and fair value assets) and have an amortization service period of approximately nine years. These assumptions have an important effect on the pension obligation. A decrease in the discount rate will cause an increase in the pension obligation. A decrease in projected salary increases will cause a decrease in this obligation. Small changes in assumptions may cause significant differences in reported results for these plans. For example, a sensitivity analysis is presented below for the impact of change in the discount rate and the long-term rate of return on assets assumed on our defined benefit pension plans expense for the year 2024 and projected benefit obligation as of December 31, 2024.
GL 2024 FORM 10-K
GLOBE LIFE INC.
Management's Discussion & Analysis
Pension Assumptions
(Dollar amounts in thousands)
Assumption Change(1)
Impact on Expense Impact on Projected Benefit Obligation
Discount Rate(2):
Increase 25 $ (870) $ (19,576)
Decrease (25) 777 20,627
Expected Return(3):
Increase 25 (1,578) -
Decrease (25) 1,578 -
(1)In basis points.
(2)The discount rate for determining the net periodic benefit cost was 5.40% for 2024. The discount rate used for determining the projected benefit obligation as of December 31, 2024 was 5.81%.
(3)The expected long-term return rate assumed was 7.18% at December 31, 2024, and 6.98% in the prior year. Management considers both historical and future yields to determine the expected return.
The Company determines mortality assumptions through the use of published mortality tables that reflect broad-based studies of mortality and published longevity improvement scales.
The criteria used to determine the primary assumptions are discussed in Note 10-Postretirement Benefits. While we have used our best efforts to determine the most reliable assumptions, given the information available from Company experience, economic data, independent consultants, and other sources, we cannot be certain that actual results will be the same as expected. The assumptions are reviewed annually and revised, if necessary, based on more current information available to us. Note 10-Postretirement Benefits also contains information about pension plan assets, investment policies, and other related data. There were no significant changes in the assumptions in the current year.
GL 2024 FORM 10-K

---

ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
Item 7A. Quantitative and Qualitative Disclosures About Market Risk
Information required by this item is found under the heading Market Risk Sensitivity in Item 7 of this report.

---

ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
Consolidated Financial Statements Index
Page
Report of Independent Registered Public Accounting Firm (PCAOB No. 34)
Consolidated Financial Statements:
Consolidated Balance Sheets at December 31, 2024, and 2023
Consolidated Statements of Operations for each of the three years in the period ended December 31, 2024
Consolidated Statements of Comprehensive Income (Loss) for each of the three years in the period ended December 31, 2024
Consolidated Statements of Shareholders’ Equity for each of the three years in the period ended December 31, 2024
Consolidated Statements of Cash Flows for each of the three years in the period ended December 31, 2024
Notes to Consolidated Financial Statements
GL 2024 FORM 10-K
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Shareholders and the Board of Directors of Globe Life Inc.
Opinion on the Financial Statements
We have audited the accompanying consolidated balance sheets of Globe Life Inc. and subsidiaries (the "Company") as of December 31, 2024 and 2023, the related consolidated statements of operations, comprehensive income (loss), shareholders’ equity, and cash flows, for each of the three years in the period ended December 31, 2024, and the related notes and the schedules listed in the Index at Item 15 (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2024 and 2023, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2024, in conformity with accounting principles generally accepted in the United States of America.
We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company's internal control over financial reporting as of December 31, 2024, based on criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission and our report dated February 26, 2025, expressed an unqualified opinion on the Company’s internal control over financial reporting.
Basis for Opinion
These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.
Critical Audit Matter
The critical audit matter communicated below is a matter arising from the current-period audit of the financial statements that was communicated or required to be communicated to the audit committee and that (1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.
Future Policy Benefits at Current Discount Rates and Amortization of Deferred Acquisition Costs - Certain Underlying Assumptions for Certain Products - Refer to Notes 1, 6 and 7 to the Financial Statements
Critical Audit Matter Description
The Company estimates the liability for future policy benefits based on the net level premium method, which requires a calculation of the present value of estimated future policyholder benefits and the related termination expenses, less the present value of estimated future net premiums to be collected from policyholders. The
GL 2024 FORM 10-K
Company estimates the amortization of deferred acquisition costs on a constant-level basis over the expected term of the grouped contracts.
The most significant assumptions used to estimate the liability for future policy benefits and amortization of deferred acquisition costs for certain products are mortality, morbidity and lapse. The Company regularly reviews these assumptions, which are updated as necessary in the third quarter of every year, or more frequently if suggested by experience. The mortality, morbidity, and lapse assumptions are determined based upon Company experience and industry data.
Given the inherent uncertainty and extent of specialized skill required in assessing the mortality, morbidity and lapse assumptions, auditing the development of these assumptions for certain products involved especially subjective judgment.
How the Critical Audit Matter Was Addressed in the Audit
Our audit procedures related to management’s judgments regarding the mortality, morbidity, and lapse assumptions used in the development of future policy benefits and the amortization of deferred acquisition costs for certain insurance products, included the following, among others:
•We tested the effectiveness of controls over the development of these assumptions used in the valuation of future policy benefits and the amortization of deferred acquisition costs for certain insurance products, including the effectiveness of the controls over the underlying data.
•We tested the underlying data used in the development of these assumptions as well as in the valuation of future policy benefits and the amortization of deferred acquisition costs for certain insurance products.
•With the assistance of our actuarial specialists, we:
◦evaluated management’s methods, calculations and judgments regarding the development of these assumptions used in the valuation of future policy benefits and the amortization of deferred acquisition costs for certain products.
◦evaluated on a sample basis, through independent calculation of future policy benefits and amortization of deferred acquisition costs, the mathematical accuracy of management’s calculations, the appropriateness of valuation models, and whether these assumptions were properly applied.
/s/ Deloitte & Touche LLP
Dallas, Texas
February 26, 2025
We have served as the Company’s auditor since 1999.
GL 2024 FORM 10-K
Globe Life Inc.
Consolidated Balance Sheets
(Dollar amounts in thousands, except per share data)
December 31,
2024 2023
Assets:
Investments:
Fixed maturities-available for sale, at fair value (amortized cost: 2024-$18,835,809;
2023-$18,924,914, allowance for credit losses: 2024- $10,395; 2023- $7,115)
$ 17,155,012 $ 17,870,206
Mortgage loans 396,088 279,199
Policy loans 699,669 657,020
Other long-term investments (includes: 2024-$986,766; 2023-$795,583 under the fair value option)
1,235,759 835,878
Short-term investments 85,035 81,740
Total investments 19,571,563 19,724,043
Cash 165,325 103,156
Accrued investment income 269,791 270,396
Other receivables 691,907 630,223
Deferred acquisition costs 6,495,589 6,009,477
Goodwill 490,446 481,791
Other assets 1,391,560 832,413
Total assets $ 29,076,181 $ 28,051,499
Liabilities:
Future policy benefits at current discount rates: (at original discount rates: 2024-$17,552,564; 2023-$16,984,615)
$ 18,457,263 $ 19,460,353
Unearned and advance premium 257,631 254,567
Policy claims and other benefits payable 532,832 514,875
Other policyholders' funds 468,604 236,958
Total policy liabilities 19,716,330 20,466,753
Current and deferred income taxes 731,255 494,639
Short-term debt 415,401 486,113
Long-term debt (estimated fair value: 2024-$2,122,772; 2023-$1,491,229)
2,324,251 1,629,559
Other liabilities 583,424 487,632
Total liabilities 23,770,661 23,564,696
Commitments and Contingencies (Note 5)
Shareholders' equity:
Preferred stock, par value $1 per share-5,000,000 shares authorized; outstanding: 0 in 2024 and 2023
- -
Common stock, par value $1 per share-320,000,000 shares authorized; outstanding: (2024-97,218,183 issued; 2023-102,218,183 issued)
97,218 102,218
Additional paid-in-capital 527,795 532,474
Accumulated other comprehensive income (loss) (2,029,720) (2,772,419)
Retained earnings 8,002,521 7,478,813
Treasury stock, at cost: (2024-13,240,616 shares; 2023-8,426,854 shares)
(1,292,294) (854,283)
Total shareholders' equity 5,305,520 4,486,803
Total liabilities and shareholders' equity $ 29,076,181 $ 28,051,499
See accompanying Notes to Consolidated Financial Statements.
GL 2024 FORM 10-K
Globe Life Inc.
Consolidated Statements of Operations
(Dollar amounts in thousands, except per share data)
Year Ended December 31,
2024 2023 2022
Revenue:
Life premium $ 3,261,347 $ 3,137,244 $ 3,027,824
Health premium 1,404,925 1,318,773 1,282,417
Other premium - - 1
Total premium 4,666,272 4,456,017 4,310,242
Net investment income 1,135,631 1,056,884 991,800
Realized gains (losses) (24,188) (65,676) (76,548)
Other income 354 308 1,246
Total revenue 5,778,069 5,447,533 5,226,740
Benefits and expenses:
Life policyholder benefits(1)
2,000,977 2,050,789 2,035,693
Health policyholder benefits(2)
851,577 776,362 752,866
Other policyholder benefits 41,889 37,100 36,875
Total policyholder benefits 2,894,443 2,864,251 2,825,434
Amortization of deferred acquisition costs 410,001 379,700 348,824
Commissions, premium taxes, and non-deferred acquisition costs 600,753 559,167 506,022
Other operating expense 419,143 347,833 353,954
Interest expense 127,092 102,316 90,395
Total benefits and expenses 4,451,432 4,253,267 4,124,629
Income before income taxes 1,326,637 1,194,266 1,102,111
Income tax benefit (expense) (255,875) (223,511) (207,725)
Net income
$ 1,070,762 $ 970,755 $ 894,386
Basic net income per common share
$ 11.99 $ 10.21 $ 9.13
Diluted net income per common share
$ 11.94 $ 10.07 $ 9.04
(1)Net of total remeasurement, including both the impact of assumption changes and the effect of actual to expected experience adjustments, resulting in a gain (loss) of $107.0 million, $29.4 million, and $(47.4) million for the year ended December 31, 2024, 2023, and 2022, respectively.
(2)Net of total remeasurement, including both the impact of assumption changes and the effect of actual to expected experience adjustments, resulting in a gain (loss) of $(3.2) million, $11.8 million, and $15.6 million for the year ended December 31, 2024, 2023, and 2022, respectively.
See accompanying Notes to Consolidated Financial Statements.
GL 2024 FORM 10-K
Globe Life Inc.
Consolidated Statements of Comprehensive Income (Loss)
(Dollar amounts in thousands)
Year Ended December 31,
2024 2023 2022
Net income
$ 1,070,762 $ 970,755 $ 894,386
Other comprehensive income (loss):
Investments:
Unrealized gains (losses) on fixed maturities:
Unrealized holding gains (losses) arising during period (630,042) 671,211 (5,332,818)
Other reclassification adjustments included in net income 3,764 80,238 32,377
Foreign exchange adjustment on fixed maturities recorded at fair value 3,469 (715) 1,749
Total unrealized investment gains (losses) (622,809) 750,734 (5,298,692)
Less applicable tax (expense) benefit 130,787 (157,658) 1,112,730
Unrealized gains (losses) on investments, net of tax (492,022) 593,076 (4,185,962)
Future Policy benefits:
Change in discount rate on future policy benefits 1,567,530 (731,883) 7,021,147
Less applicable tax (expense) benefit (329,181) 153,696 (1,474,441)
Future policy benefit adjustments, net of tax 1,238,349 (578,187) 5,546,706
Foreign exchange translation:
Foreign exchange translation adjustments, other than securities (33,516) 8,102 (26,494)
Less applicable tax (expense) benefit 7,040 (1,702) 5,565
Foreign exchange translation adjustments, other than securities, net of tax (26,476) 6,400 (20,929)
Pension:
Amortization of pension costs 474 (390) 13,754
Plan amendments (1,212) - -
Experience gain (loss) 29,659 (3,907) 119,055
Pension adjustments 28,921 (4,297) 132,809
Less applicable tax (expense) benefit (6,073) 902 (27,889)
Pension adjustments, net of tax 22,848 (3,395) 104,920
Other comprehensive income (loss) 742,699 17,894 1,444,735
Comprehensive income (loss)
$ 1,813,461 $ 988,649 $ 2,339,121
See accompanying Notes to Consolidated Financial Statements.
GL 2024 FORM 10-K
Globe Life Inc.
Consolidated Statements of Shareholders' Equity
(Dollar amounts in thousands, except per share data)
Preferred Stock Common Stock Additional Paid-In Capital Accumulated Other Comprehensive Income (Loss) Retained Earnings Treasury Stock Total Shareholders' Equity
Year Ended December 31, 2022
Balance at January 1, 2022
- 109,218 520,564 (4,235,048) 6,455,733 (846,659) 2,003,808
Comprehensive income (loss) - - - 1,444,735 894,386 - 2,339,121
Common dividends declared
($0.83 per share)
- - - - (80,956) - (80,956)
Acquisition of treasury stock - - - - - (454,638) (454,638)
Stock-based compensation - - 29,119 - (345) 6,876 35,650
Exercise of stock options - - - - (29,838) 136,430 106,592
Retirement of treasury stock - (4,000) (20,022) - (344,445) 368,467 -
Balance at December 31, 2022 - 105,218 529,661 (2,790,313) 6,894,535 (789,524) 3,949,577
Year Ended December 31, 2023
Balance at January 1, 2023
- 105,218 529,661 (2,790,313) 6,894,535 (789,524) 3,949,577
Comprehensive income (loss) - - - 17,894 970,755 - 988,649
Common dividends declared
($0.90 per share)
- - - - (85,139) - (85,139)
Acquisition of treasury stock - - - - - (511,100) (511,100)
Stock-based compensation - - 18,466 - - 12,270 30,736
Exercise of stock options - - - - (19,395) 133,475 114,080
Retirement of treasury stock - (3,000) (15,653) - (281,943) 300,596 -
Balance at December 31, 2023 - 102,218 532,474 (2,772,419) 7,478,813 (854,283) 4,486,803
Year Ended December 31, 2024
Balance at January 1, 2024
- 102,218 532,474 (2,772,419) 7,478,813 (854,283) 4,486,803
Comprehensive income (loss) - - - 742,699 1,070,762 - 1,813,461
Common dividends declared
($0.96 per share)
- - - - (84,539) - (84,539)
Acquisition of treasury stock - - - - - (1,002,109) (1,002,109)
Stock-based compensation - - 22,277 - (438) 18,279 40,118
Exercise of stock options - - - - (6,358) 58,144 51,786
Retirement of treasury stock - (5,000) (26,956) - (455,719) 487,675 -
Balance at December 31, 2024 $ - $ 97,218 $ 527,795 $ (2,029,720) $ 8,002,521 $ (1,292,294) $ 5,305,520
See accompanying Notes to Consolidated Financial Statements.
GL 2024 FORM 10-K
Globe Life Inc.
Consolidated Statements of Cash Flows
(Dollar amounts in thousands)
Year Ended December 31,
2024 2023 2022
Net income
$ 1,070,762 $ 970,755 $ 894,386
Adjustments to reconcile net income to cash provided from operations:
Increase (decrease) in future policy benefits 731,417 834,366 759,426
Increase (decrease) in other policy benefits 19,268 5,448 35,638
Deferral of policy acquisition costs (913,544) (850,169) (828,943)
Amortization of deferred policy acquisition costs 410,001 379,700 348,824
Change in current and deferred income taxes 77,930 101,448 91,835
Realized (gains) losses 24,188 65,676 76,548
Other, net (17,582) (24,799) 44,480
Cash provided from (used for) operating activities
1,402,440 1,482,425 1,422,194
Cash provided from (used for) investing activities:
Investments sold or matured:
Fixed maturities available for sale-sold 1,207,237 602,556 390,392
Fixed maturities available for sale-matured or other redemptions 214,442 250,652 462,002
Mortgage loans 54,157 44,004 32,870
Other long-term investments 43,362 151,262 50,281
Total investments sold or matured 1,519,198 1,048,474 935,545
Acquisition of investments:
Fixed maturities-available for sale (1,379,238) (1,536,409) (1,420,220)
Mortgage loans (174,665) (158,823) (77,275)
Other long-term investments (459,660) (155,700) (213,207)
Total investments acquired (2,013,563) (1,850,932) (1,710,702)
Net (increase) decrease in policy loans (42,649) (42,154) (25,232)
Net (increase) decrease in short-term investments (3,295) 32,381 (44,976)
Additions to property and equipment (71,045) (49,553) (27,929)
Other investing activities 96 - -
Investments in low-income housing interests (30,258) (64,365) (69,721)
Cash provided from (used for) investing activities
(641,516) (926,149) (943,015)
Cash provided from (used for) financing activities:
Issuance of common stock 51,786 114,080 106,592
Cash dividends paid to shareholders (85,485) (84,116) (80,547)
Repayment of debt - (165,612) (150,000)
Proceeds from issuance of debt 530,000 170,000 250,492
Payment for debt issuance costs (7,253) (757) (5,272)
Net borrowing (repayment) of commercial paper (13,878) 32,961 (46,289)
Proceeds from commercial paper with original maturities greater than 90 days 484,726 - -
Repayment of commercial paper with original maturities greater than 90 days (372,011) - -
Acquisition of treasury stock (1,002,109) (511,100) (454,638)
Amounts paid to reinsurer (413,779) - -
Net receipts (payments) from deposit-type products 112,168 (96,943) (112,791)
Cash provided from (used for) financing activities
(715,835) (541,487) (492,453)
Effect of foreign exchange rate changes on cash 17,080 (4,192) 13,670
Net increase (decrease) in cash 62,169 10,597 396
Cash at beginning of year 103,156 92,559 92,163
Cash at end of year $ 165,325 $ 103,156 $ 92,559
See accompanying Notes to Consolidated Financial Statements.
GL 2024 FORM 10-K
Globe Life Inc.
Notes to Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
Note 1-Significant Accounting Policies
Business: (Globe Life), (the Company), refers to Globe Life Inc., an insurance holding company incorporated in Delaware in 1979, and Globe Life Inc. subsidiaries and affiliates. Globe Life Inc.'s direct or indirect primary subsidiaries are Globe Life And Accident Insurance Company, American Income Life Insurance Company, Liberty National Life Insurance Company, Family Heritage Life Insurance Company of America, and United American Insurance Company. The underwriting companies are owned by their ultimate corporate parent, Globe Life Inc. (Parent Company).
Globe Life provides a variety of life and supplemental health insurance products and annuities to a broad base of customers. The Company is organized into three reportable segments: life insurance, supplemental health insurance, and investments.
Globe Life markets its insurance products through a number of distribution channels, each of which sells the products of one or more of Globe Life's insurance segments. 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 (DTC).
Basis of Presentation: The accompanying consolidated financial statements of Globe Life have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), under guidance issued by the Financial Accounting Standards Board (FASB). The preparation of the consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period.
Use of Estimates: The preparation of the consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. See further documentation in the significant accounting policies or the accompanying notes.
Principles of Consolidation: The consolidated financial statements include the results of Globe Life Inc. and its wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. When Globe Life acquires a subsidiary or a block of business, the assets acquired and the liabilities assumed are measured at fair value at the acquisition date. Any excess of acquisition cost over the fair value of net assets is recorded as goodwill. Expenses incurred to effect the acquisition are charged to earnings as of the acquisition date. Upon acquisition, the accounts and results of operations are consolidated as of and subsequent to the acquisition date.
Investments: Globe Life classifies all of its fixed maturity investments as available for sale. Investments classified as available for sale are carried at fair value with unrealized gains and losses, net of taxes, reflected directly in accumulated other comprehensive income (AOCI). Income from investments is recorded in "Net investment income" on the Consolidated Statements of Operations. Gains and losses from sales, maturities, or other redemptions of investments are recorded in "Realized gains (losses)". Gains and losses realized on the disposition of investments are determined on a specific identification basis. Interest income and prepayment fees are recognized when earned. Premiums and discounts are amortized using the effective yield method. When amortized cost of a callable debt security exceeds the first call price, the premium is amortized to the earliest call date. Otherwise, the period of amortization or accretion generally extends from the purchase date to the maturity date.
"Policy loans", which represent loans provided to policyholders using cash values as collateral, are carried at unpaid principal balances.
GL 2024 FORM 10-K
Globe Life Inc.
Notes to Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
"Mortgage loans" or commercial mortgage loans, are a type of investment where the mortgage loan is shared among investors, are accounted for as financing receivables. The commercial mortgage loans are managed by third parties. The Company purchased the legal rights to interests in commercial mortgage loans which are secured by properties such as hotels, retail, multiple family, or offices. The commercial mortgage loans typically have a term of 3 years with the option to extend up to 2 years. The commercial mortgage loans are recorded at unpaid principal balance, net of unamortized origination fees and net of allowance for loan losses. Interest income, net of the amortization of origination fees, is recorded in "Net investment income" under the effective yield method. Our unfunded commitment balance to the commercial loan borrowers was $22 million as of December 31, 2024.
"Other long-term investments" include investment funds, equity securities, company-owned life insurance (COLI) and real estate. Investments in equity securities are reported at fair value with changes in fair value, net of taxes, reflected directly in "Realized gains (losses)" in the Consolidated Statements of Operations. COLI is reported at the cash surrender value; changes in the cash surrender value are recorded in net investment income. Investments in real estate are reported at cost less accumulated depreciation. Depreciation is recorded on a straight-line basis over the estimated useful life.
The investment funds consist of limited partnerships whereby the Company has a pro-rata share of ownership ranging from less than 1% to 20%. For each investment, the Company has elected the fair value option, but would have been otherwise accounted for as an equity method investment. The fair value option is assessed for each individual investment at the inception of the investment.
Each limited partnership investment is evaluated under applicable GAAP to determine if it is a variable interest entity (VIE) and would qualify for consolidation. Primary beneficiaries are required to consolidate VIEs. The investments are not consolidated because the Company has no power to control the activities that most significantly affect the economic performance of these entities and therefore the Company is not the primary beneficiary of any of these interests. Globe Life's involvement is limited to its limited partnership interest in the entities. The Company has not provided any other financial support to the entities beyond its commitments to fund its limited partnership interests, and there are no arrangements or agreements with any of the interests to provide other financial support. The maximum loss exposure relative to these interests is limited to their carrying value and future commitments. The Company has approximately 2% of total assets in low-income housing tax credits and certain limited partnerships (investment funds) that qualify as unconsolidated VIEs.
The limited partnership investments are reported at the Company's pro-rata share of the investment fund's net asset value or its equivalent (NAV), as a practical expedient for fair value. Changes in the NAV are recorded in net income and increase the carrying value on the balance sheet. The amount of change in NAV attributable to the net operating results of the fund is recorded in "Net investment income" with the remaining balance of the change reflected in "Realized gains (losses)." Distributions received from the funds reduce the carrying value. Our maximum exposure to loss is equal to the outstanding carrying value and future funding commitments. The Company had $239 million of capital called during the year from existing investment funds, reducing our unfunded commitments. Our unfunded commitments were $433 million as of December 31, 2024.
"Short-term investments" include investments in interest-bearing assets with original maturities of twelve months or less.
GL 2024 FORM 10-K
Globe Life Inc.
Notes to Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
Fair Value Measurements, Investments in Securities: Globe Life measures the fair value of its "fixed maturities" based on a hierarchy consisting of three levels which indicate the quality of the fair value measurements as described below:
•Level 1-fair values are based on quoted prices in active markets for identical assets or liabilities that the Company has the ability to access as of the measurement date.
•Level 2-fair values are based on inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability, or inputs that can otherwise be corroborated by observable market data.
•Level 3-fair values are based on inputs that are considered unobservable where there is little, if any, market activity for the asset or liability as of the measurement date. In this circumstance, the Company has to rely on values derived by independent brokers or internally-developed assumptions. Unobservable inputs are developed based on the best information available to the Company which may include the Company’s own data or bid and ask prices in the dealer market.
Certain investments, such as investment funds, that are measured at fair value using the net asset value per share or its equivalent, as a practical expedient, have not been classified in the fair value hierarchy. The net asset value is provided by general partners or managers.
The great majority of Globe Life's "fixed maturities" are not actively traded and direct quotes are not generally available. Management therefore determines the fair values of these securities after consideration of data provided by third-party pricing services, independent broker/dealers, and other resources. At December 31, 2024, the Company's investments in fixed maturities were primarily composed of the following significant security types: corporate securities, state and municipal securities, U.S. government direct, guaranteed, and government-sponsored enterprises securities. The remaining security types represented approximately 1% of the total in the aggregate.
Approximately 98% of the fair value of "fixed maturities" reported at December 31, 2024 was determined using data provided by third-party pricing services. Prices provided by these services are not binding offers but are estimated exit values. Third-party pricing services use proprietary pricing models to determine security values by discounting cash flows using a market-adjusted spread to a benchmark yield.
For all asset classes within Globe Life's significant security types, third-party pricing services use a common valuation technique to model the price of the investments using observable market data. The foundation for these models consists of developing yield spreads based on multiple observable market inputs, including but not limited to: benchmark yield curves, actual trading activity, new issue yields, broker-dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers, sector-specific data, economic data, and other inputs that are corroborated in the market. Pricing vendors monitor and review their pricing data continuously with current market and economic data feeds, augmented by ongoing communication within the dealer community.
Using the observable market inputs described above, spreads to an appropriate benchmark yield are further developed by the vendors for each security based on security-specific and/or sector-specific risk factors, such as a security’s terms and conditions (coupon, maturity, and call features), credit rating, sector, liquidity, collateral or other cash flow options, and other factors that could impact the risk of the security. Embedded repayment options, such as call and redemption features, are also taken into account in the pricing models. When the spread is determined, it is added to the security’s benchmark yield. The security's expected cash flows are discounted using this spread-adjusted yield, and the resulting present value of the discounted cash flows is the evaluated price.
When third-party vendor prices are not available, the Company attempts to obtain valuations from other sources, including but not limited to broker/dealers, broker quotes, and prices on comparable securities.
GL 2024 FORM 10-K
Globe Life Inc.
Notes to Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
When valuations have been obtained for all securities in the portfolio, management reviews and analyzes the prices to ensure their reasonableness, taking into account available and observable information. The Company utilizes pricing from multiple pricing providers and applies a hierarchy of sources to determine price. When two or more valuations are available for a security and the variance between the prices is 10% or less, the close correlation suggests similar observable inputs were used in deriving the price, and the price is selected based on hierarchy of pricing providers. Securities valued in this manner are classified as Level 2. When the variance between two or more valuations for a security exceeds 10%, additional analysis is performed to evaluate the reasonableness of the fair value using the hierarchy and upon the evaluation company may elect to use the hierarchy of pricing providers or use additional resources such as broker quotes, prices on comparable securities, recent trades, and any other observable market data to corroborate the pricing provider. If fair value differences from pricing providers are determined to be unreasonable and additional pricing resources utilizing observable market data cannot corroborate the price within a reasonable tolerance, then the security will be classified as Level 3.
Globe Life invests in private placement fixed maturities. Private placement fixed maturities are generally not an active market. Private placement valuations are based on observable inputs, such as the benchmark treasury rate, published sector indices, and/or publicly traded comparables and unobservable inputs such as an internally-developed credit ratings, public private spreads and/or private letter ratings assigned by the nationally recognized statistical rating organizations. If observable inputs cannot be corroborated, the fair values are classified as Level 3. Refer to Note 4-Investments under the caption Quantitative Information about Level 3 Fair Value Measurements.
The fair values for each class of security and by valuation hierarchy level are indicated in Note 4-Investments under the caption Fair value measurements, and Note 10-Postretirement Benefits under the caption Pension Assets.
Fair Value Measurements, Other Financial Instruments: Fair values for cash and cash equivalents, short-term investments, short-term debt, receivables, and payables approximate carrying value. Cash and cash equivalents are classified as Level 1. Fair values of commercial mortgage loans are determined based upon expected cash flows discounted at an appropriate risk-adjusted rate and are classified as Level 3. The fair value of investments in limited partnerships that provide low-income housing tax credits is based on discounted projected cash flows and are classified as Level 3. Policy loans are an integral part of Globe Life's subsidiaries’ life insurance policies in force and their fair values cannot be valued separately from the insurance contracts. Investment funds are based on net asset value and are excluded from the fair value hierarchy.
The fair values of Globe Life's long and short-term debt issues are based on the same methodology as investments in fixed maturities. At December 31, 2024, observable inputs were available for these debt securities and as such were classified as Level 2 in the valuation hierarchy. The fair value for each debt instrument as of December 31, 2024 is disclosed in Note 12-Debt.
As described in Note 10-Postretirement Benefits, Globe Life maintains a nonqualified supplemental retirement plan. Accordingly, the assets that support the liability for this plan are considered general assets of the Company. These assets consist of the cash value of company-owned life insurance policies (COLI) and exchange traded funds (ETFs). Fair values for the ETFs are derived from direct quotes and are considered Level 1 in the fair value hierarchy.
Current Expected Credit Loss Reserve (fixed maturities): At the onset of the evaluation, the Company individually assesses each fixed maturity, on a quarterly basis, to determine whether it intends to sell, or it is more likely than not that it will be required to sell the security before recovery of its amortized cost basis. If either of the criteria are met, the Company will write down the fixed maturity's amortized cost basis to fair value through "Realized gains (losses)".
If neither of the aforementioned criteria are met, the Company will evaluate whether the decline in fair value has resulted from a credit event. The Company will evaluate many factors, as further described below, to determine the present value of the expected cash flows. A credit loss occurs when the present value of the expected cash flows is less than the amortized cost basis. This will result in the recording of an allowance for credit losses as a contra
GL 2024 FORM 10-K
Globe Life Inc.
Notes to Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
asset account to the amortized cost basis with an offsetting provision for credit losses in "Realized gains (losses)" on the Consolidated Statements of Operations. Additionally, the current expected credit loss (CECL) methodology includes a fair value floor where the allowance for credit loss for a security cannot exceed the difference between fair value and amortized cost. When it is determined that there is not a credit loss, the decline in fair value is recognized in Other Comprehensive Income.
All changes in the allowance for credit losses are recorded as provision for (or reversal of) credit loss expense. Losses recorded to the allowance for credit losses are management's best estimate of the uncollectibility of principal and interest of a fixed maturity.
The evaluation of Globe Life's securities for credit losses is a process that is undertaken at least quarterly and is overseen by a team of investment and accounting professionals. The process for making this determination is highly subjective and involves the careful consideration of many factors. The factors considered include, but are not limited to:
•The Company’s lack of intent to sell the debt security before recovery;
•Whether it is more likely than not the Company will be required to sell prior to maturity;
•The reason(s) for the credit related losses;
•The financial condition of the issuer and the prospects for recovery in fair value of the security;
•Expected future cash flows.
The relative weight given to each of these factors can change over time as facts and circumstances change. In many cases, management believes it is appropriate to give more consideration to prospective factors than to retrospective factors. Prospective factors that are given more weight include prospects for recovery, the Company’s ability and general intent to hold the security until anticipated recovery, and expected future cash flows.
Among the facts and information considered in the process are:
•Financial statements of the issuer;
•Changes in credit ratings of the issuer;
•The value of underlying collateral;
•News and information included in press releases issued by the issuer;
•News and information reported in the media concerning the issuer;
•News and information published by or otherwise provided by securities, economic, or research analysts;
•The nature and amount of recent and expected future sources and uses of cash;
•Default on a required payment;
•Issuer bankruptcy filings.
The expected cash flows are determined using judgment and the best information available to the Company. Inputs used to derive expected cash flows generally include expected default rates, current levels of subordination, and estimated recovery rate. The discount rate utilized in the discounted cash flows is the effective interest rate, which is the rate of return implicit in the asset at acquisition.
GL 2024 FORM 10-K
Globe Life Inc.
Notes to Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
Current Expected Credit Loss Reserve (mortgage loans): The Company evaluates the performance and credit quality of the commercial mortgage loan portfolio at least on a quarterly basis, or as needed, by utilizing common metrics such as loan-to-value or debt-service ratios as well as covenants, local market conditions, borrower quality, and underlying collateral. The fair value of the underlying collateral is based on a third-party appraisal of the property at origination of the loan. The fair value is assessed on an annual basis or more frequently when a loan is materially underperforming, 30 days delinquent, or in technical default. The Company determines the probability of estimated losses for the performing commercial mortgage loan portfolio on a pool basis each quarter and records an allowance. The allowance for credit losses is based on estimates, historical experience, probability of loss, value of the underlying collateral, and macro factors that affect the collectability of the loan.
If management determines that foreclosure of a particular property is probable, or determines the loan is collateral dependent, the company may elect the practical expedient. for an individual mortgage loan to estimate the expected credit losses, which are based on the fair value of the property less amortized cost, adjusted for selling and other associated costs. See Note 4-Investments for current activity.
Cash: "Cash" consists of balances on hand and on deposit in banks and financial institutions.
Accrued investment income: "Accrued investment income" consists of interest income or dividends earned on the investment portfolio, but which are yet to be received as of the balance sheet date. The Company will write off accrued investment income that is deemed to be uncollectible related to the fixed maturities.
"Accrued investment income" also consists of interest income earned on the commercial mortgage loan portfolio, but which is yet to be received as of the balance sheet date. Accrued investment income will be placed in non-accrual status at the time the loan is 90 days delinquent or otherwise deemed to be uncollectible by management. Accrued investment income that is deemed to be uncollectible will be written off. As of December 31, 2024, the accrued interest receivable for commercial mortgage loans was $4.2 million. Mortgage loans generally pay interest monthly, therefore accrued interest is typically for a period of less than 30 days.
As a practical expedient, the Company excludes the accrued investment income from the amortized cost basis of the investment and separately reports it in another financial statement line item, "Accrued investment income." Accordingly, the amount will be excluded from disclosures within Note 4-Investments.
Other Receivables: Agent debit balances primarily represent commissions advanced to insurance agents, a common industry practice. Generally, commissions are paid to an agent when due over the life of a policy as premiums are paid. However, some agents may qualify to have their commissions (primarily first-year commissions) paid in advance of when the commissions are earned. To the extent an advance is made, we will generally advance up to 65% of first year commissions. This creates an agent debit balance which is classified within “Other receivables”. These balances are repaid to the Company over time, generally one year, as the premiums associated with the advanced commissions are collected by the Company and a portion of the agents' commissions on such premiums are retained in order to repay the balances. If an agent has an agent debit balance with the Company, commissions earned by that agent are generally first applied to reduce the amounts owed to the Company. Any excess will be paid to the agent in cash. The balances were $542 million at December 31, 2024 and $501 million at December 31, 2023. When an agent sells a policy, commissions are advanced to the agent, and the collection of the advance is made as long as the policy stays in force. While there is a susceptibility to loss should an agent terminate or excessive policy lapses occur, the ability of the Company to continue to collect an agent's commission streams over time from prior sales of policies reduces the Company's exposure to loss.
Commissions are earned by the agent over the contract period as long as premium is paid by the policyholder and the policy stays in force. As the commissions are earned by the agent and commission expense is incurred by the Company the agent debit balance is reduced. The portion of commission expense incurred related to non-level commissions is deferred and recorded as “Deferred acquisition cost.” The portion of level commission is recognized as an expense within “Commissions, premium taxes, and non-deferred acquisition costs.”
GL 2024 FORM 10-K
Globe Life Inc.
Notes to Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
The Company has a very low inherent risk with regard to the collection of agent debit balances and views these balances as recoverable since they are, in aggregate, less than the estimated present value of future commissions discounted at a conservative rate which includes assumptions for lapses and mortality. The Company’s security, or collateral, is in the form of future commission streams collected over the life of the policies sold by the respective agents, which ultimately revert to the Company in the event an agent is terminated. The Company evaluated the agent debit balances on a pool basis to determine the allowance for credit losses, as the loans have similar characteristics. A provision for credit losses will be recorded in "Realized gains (losses)" on the Consolidated Statements of Operations and the asset balance will be reflected in agent debit balances, net of allowance for credit losses ("Other receivables"). As of December 31, 2024 and 2023, the allowance for credit losses was $1.4 million and $1.2 million, respectively.
Deferred Acquisition Costs: Certain costs of acquiring new insurance business are deferred and recorded as an asset. These costs are capitalized on a grouped contract basis and amortized over the expected term of the related contracts, and are essential for the acquisition of new insurance business. Deferred acquisition costs (DAC) are directly related to the successful issuance of an insurance contract, and primarily include sales commissions, policy issue costs, direct to consumer advertising costs, and underwriting costs. Additionally, DAC includes the value of business acquired (VOBA), which are the costs of acquiring blocks of insurance from other companies or through the acquisition of other companies. These costs represent the difference between the fair value of the contractual insurance assets acquired and liabilities assumed, compared against the assets and liabilities for insurance contracts that the company issues or holds measured in accordance with GAAP.
DAC is amortized on a constant-level basis over the expected term of the grouped contracts, with the related expense included in amortization of deferred acquisition costs on the Consolidated Statements of Operations. The in-force metric used to compute the DAC amortization rate is annualized premium in force. The assumptions used to amortize acquisition costs include mortality, morbidity, and lapses. These assumptions are reviewed at least annually and revised in conjunction with any change in the future policy benefit assumptions. The effect of changes in the assumptions are recognized over the remaining expected contract term as a revision of future amortization amounts.
VOBA is amortized on a basis that is consistent with DAC, as described above, and is subject to periodic recoverability and loss recognition testing to determine if there is a premium deficiency. These tests evaluate whether the present value of future contract-related cash flows will support the capitalized VOBA asset. These cash flows consist primarily of premium income, less benefits and expenses. The present value of these cash flows, less the liability for future policy benefits, is then compared with the unamortized balance. In the event the estimated present value of net cash flows is less, the deficiency would be recognized by a charge to earnings and either a reduction of unamortized acquisition costs or an increase in the liability for future policy benefits. Refer to Note 7-DAC.
Advertising Costs: Costs related to advertising are generally charged to expense as incurred. However, certain Direct to Consumer advertising costs are capitalized when there is a reliable and demonstrated relationship between total costs and future benefits that is a direct result of incurring these costs. Advertising costs consist primarily of internet advertising costs and the production and distribution costs of direct mail advertising materials, and when capitalized are included as a component of DAC. Additionally, they are amortized in the same manner as other DAC. Advertising costs charged to earnings and included in commissions, premium taxes, and non-deferred acquisition costs were $15.7 million, $19.2 million, and $9.4 million in 2024, 2023, and 2022, respectively. Unamortized capitalized advertising costs included within DAC were $1.6 billion at December 31, 2024 and $1.6 billion at December 31, 2023.
Goodwill: The excess cost of a business acquired over the fair value of net assets acquired is reported as goodwill. In accordance with the guidance, goodwill is subject to impairment testing on an annual basis, or whenever potential impairment triggers occur. Impairment testing involves the performance of a qualitative analysis, which involves assessing current events and circumstances to determine if it is more likely than not that the fair value of a reporting unit is less than its carrying amount. In the event the fair value is less than the carrying value, further testing is required to determine the amount of impairment, if any. If there is an impairment in the goodwill of any reporting unit,
GL 2024 FORM 10-K
Globe Life Inc.
Notes to Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
it is written down and charged to earnings in the period of the test. Globe Life tests its goodwill annually as of June 30th for each of the years 2022 through 2024. The Company's goodwill was not impaired in any of those periods. The Company completed the acquisition of Evry Health during 2024 resulting in an increase in goodwill of $8.7 million.
Low-Income Housing Tax Credit Interests: Globe Life invests in limited partnerships that provide low-income housing tax credits and other related federal income tax benefits to the Company. Globe Life holds passive interests in limited partnerships that provide investment returns through the provision of tax benefits (principally from the transfer of federal or state tax credits related to federal low-income housing). These investments are considered to be VIEs and do not qualify for consolidation. The carrying value of the Company's investment in these entities was $270 million and $267 million at December 31, 2024 and 2023, respectively, and was included in "Other assets" on the Consolidated Balance Sheets. As of December 31, 2024, Globe Life was obligated under future commitments of $76 million, which are recorded in "Other liabilities." For guaranteed investments acquired prior to January 1, 2015, the Company utilizes the effective-yield method of amortization, while the proportional method of amortization is utilized for all non-guaranteed and guaranteed investments acquired on or after January 1, 2015. All net amortization expense and income tax benefits are recorded in "Income tax benefit (expense)" on the Consolidated Statements of Operations.
Property and Equipment: Property and equipment, included in “Other assets,” is reported at cost less accumulated depreciation. Depreciation is recorded primarily on the straight line method over the estimated useful lives of these assets which range from three to fifteen years for equipment and software, and fifteen to forty years for buildings and improvements. Ordinary maintenance and repairs are charged to income as incurred. Impairments, if any, are recorded when certain events and circumstances become evident that the fair value of the asset is less than its carrying amount. Original cost of property and equipment was $527 million at December 31, 2024 and $455 million at December 31, 2023. Accumulated depreciation was $242 million at the end of 2024 and $215 million at the end of 2023. Depreciation expense was $27 million in 2024, $21 million in 2023, and $21 million in 2022. Internally generated software costs are expensed as incurred in the preliminary project phase and post-implementation phase, and are capitalized during the application development stage. Additionally, implementation costs incurred in a hosting arrangement that is a service contract are capitalized. See below for a breakout of the net balance by asset class for the year ended December 31, 2024 and 2023:
Year Ended December 31,
2024 2023
Property and equipment, net of accumulated depreciation:
Company occupied real estate $ 36,656 $ 32,566
Data processing equipment 219,614 198,150
Transportation equipment 26,346 7,405
Furniture and equipment 1,656 1,776
Total property and equipment, net of depreciation
$ 284,272 $ 239,897
Future Policy Benefits: The liability for future policy benefits for traditional and limited-payment long duration life and health products comprises approximately 93% of the total liability for future policy benefits. The liability is determined each reporting period based on the net level premium method. This method requires the liability for future policy benefits be calculated as the present value of estimated future policyholder benefits and the related termination expenses, less the present value of estimated future net premiums to be collected from policyholders. Net level premiums reflect a recomputed net premium ratio using actual experience since the issue date or January 1, 2021, the Transition Date(1), and expected future experience. The liability is accrued as premium revenue is recognized and adjusted for differences between actual and expected experience. Long-duration insurance contracts issued by the Company are grouped into cohorts based on the contract issue year, distribution channel, legal entity, and product type.
(1) On January 1, 2023, the Company adopted ASU 2018-12, Financial Services - Insurance (Topic 944): Targeted Improvements to the Accounting for Long-Duration Contracts (ASU 2018-12) on a modified retrospective basis as the transition date (Transition Date) of January 1, 2021.
GL 2024 FORM 10-K
Globe Life Inc.
Notes to Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
Both the present value of expected future benefit payments and the present value of expected future net premiums are based primarily on assumptions of discount rates, mortality, morbidity, and lapses. Each quarter, the Company remeasures its liability for future policy benefits using current discount rates with the effect of the change recognized in Other Comprehensive Income, a component of shareholders’ equity. In addition, the Company recognizes a liability remeasurement gain or loss within the Consolidated Statements of Operations using original discount rates, and relating to actual experience under the net premium calculation, as compared to the prior reporting period assumptions.
The Company regularly reviews its cash flow assumptions (mortality, morbidity, and lapses) used to calculate the change in the liability for future policy benefits. These cash flow assumptions are updated as necessary in the third quarter of every year, or more frequently if suggested by experience. If cash flow assumptions are changed, the net premium ratio is recalculated from the original issue date, or the Transition Date, using actual experience and projected future cash flows. When the expected future net premiums exceed the expected future gross premiums (capping), or the present value of future policyholder benefits exceeds the present value of expected future gross premiums (flooring), the liability for future policy benefits is adjusted with changes recognized in policyholder benefits on the Consolidated Statements of Operations. The cash flow assumptions do not include an adjustment for adverse deviation. Mortality tables used for individual life insurance include various industry tables and reflect modifications based on Company experience. Morbidity assumptions for individual health are based on Company experience and industry data. Lapse assumptions are based on Company experience.
The liability for future policy benefits is discounted as noted above, using a current upper-medium grade fixed-income instrument yield that reflects the duration characteristics of the liability for future policy benefits. The methodology for determining current discount rates consists of constructing a discount rate curve intended to be reflective of the currency and tenor of the insurance liability cash flows. The methodology is designed to prioritize observable inputs based on market data available in the local debt markets denominated in the same currency as the policies. For the discount rates applicable to tenors for which the single-A debt market is not liquid or there is little or no observable market data, the Company will use estimation techniques consistent with the fair value guidance in ASC 820. We further accrete interest as a component of policyholder benefits using the original discount rate that is locked-in during the year of contract issuance. The original discount rates (or the locked-in discount rates) are used for interest accretion purposes and for the determination of net premiums, whereas the current discount rates are used for purposes of valuing the liability.
The liability for future policy benefits for annuity and interest sensitive life-type products is represented by policy account value. For limited-payment contracts, a deferred profit liability is also recorded, with changes recognized in income over the life of the contract in proportion to the amount of insurance in force. Refer to Note 6-Policy Liabilities.
Reinsurance: In the normal course of business, Globe Life insurance subsidiaries will enter into reinsurance agreements to limit their exposure to the risk of loss as well as enhance their capital position. To qualify for reinsurance accounting in accordance with applicable guidance, the assuming company (reinsurer) must have the “reasonable possibility” that it may realize a “significant loss.” In instances where the ceding company does not transfer significant insurance risk to the reinsurer, deposit accounting is utilized. Any risk charges payable related to reinsurance agreements where deposit accounting is applicable are recorded as an Other Liability. Any balances due to the Company under the terms of the reinsurance agreement are recorded as a reinsurance recoverable within Other Assets on the Consolidated Balance Sheets. Any ceding commission due to the Company under the terms of the reinsurance agreement are recorded in income over the remaining life of the ceding contracts.
In the fourth quarter of 2024, the Company entered into a coinsurance agreement to cede a majority of its annuity business to a third-party insurer. The annuity reserves ceded totaled $462 million. The pre-tax ceding commission under the agreement was approximately $50 million and will be recognized into income over the remaining life of the ceded contracts. Amounts paid to the reinsurer upon entering into the coinsurance agreement were $413 million, which are reflected as a cash outflow within financing activities in the Consolidated Statement of Cash Flows. The underlying policies ceded are deposit-type contracts and the coinsurance agreement transfers only timing risk to the reinsurer. Net amounts paid to the reinsurer and reimbursements for losses after inception of the
GL 2024 FORM 10-K
Globe Life Inc.
Notes to Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
coinsurance agreement are reported as financing activities within "Net receipts (payments) from deposit-type products". Under the terms of the agreement, the assuming company will be required to maintain assets in trust at 105% of reserves. The Company's annuity business comprises less than 1% of revenue and is not core to the Company's business, therefore we have adjusted our segment reporting to reflect the annuity business as a reconciling item to income before taxes in the segment reporting in this Form 10-K. Prior periods presented have been recast for comparability.
Unearned and Advanced Premium: Premium collected from both life and health policies that have not been earned and recognized in accordance with applicable GAAP. Refer to Recognition of Premium Revenue below.
Policy Claims and Other Benefits Payable: Globe Life establishes a liability for known policy benefits payable and an estimate of claims that have been incurred but not yet reported to the Company. Globe Life makes an estimate of unreported claims after careful evaluation of all information available to the Company. This estimate is based on prior experience and is reviewed quarterly. However, there is no certainty the stated liability for claims and other benefits, including the estimate of unsubmitted claims, will be Globe Life's ultimate obligation. For more information, see Note 8-Liability for Unpaid Claims.
Current and Deferred Income Taxes: Current and deferred income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the consolidated financial statement book values and tax bases of assets and liabilities. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date.
Postretirement Benefits: Globe Life accounts for its postretirement defined benefit plans by recognizing the funded status of those plans on its Consolidated Balance Sheets in accordance with accounting guidance. Periodic gains and losses attributable to changes in plan assets and liabilities that are not recognized as components of net periodic benefit costs are recognized as components of other comprehensive income, net of tax. The supplemental executive retirement plan is accounted for consistent with the qualified noncontributory pension plan. The assets are included in a Rabbi Trust and recorded in Other Assets on the Consolidated Balance Sheets. More information concerning the accounting and disclosures for postretirement benefits is found in Note 10-Postretirement Benefits.
Treasury Stock: Globe Life accounts for purchases of treasury stock on the cost method. Issuance of treasury stock is accounted for using the weighted-average cost method. More information is found in Note 13-Shareholders' Equity.
Recognition of Premium Revenue: Premium income for traditional long-duration life and health insurance products is recognized evenly over the contract period and when due from the policyholder. Premiums for short-duration health contracts are recognized as revenue over the contract period in proportion to the insurance protection provided. Premiums for universal life-type and annuity contracts are added to the policy account value, and revenues for such products are recognized as charges to the policy account value for mortality, administration, and surrenders (retrospective deposit method). Life premium includes policy charges of $12.3 million, $12.9 million, and $13.5 million for the years ended December 31, 2024, 2023, and 2022, respectively. Other premium consists of annuity policy charges in each year. For limited-payment life insurance products, the profits are recognized over the contract period.
Commission, premium taxes, and non-deferred acquisition costs: Commissions represent commission-related amounts that are not deferred. Premium taxes are taxes incurred on premiums written within a state jurisdiction. Non-deferred acquisition costs relate to expenses incurred in the selling or issuing of business which are non-deferrable.
GL 2024 FORM 10-K
Globe Life Inc.
Notes to Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
2024 2023 2022
Commissions $ 317,576 $ 295,877 $ 285,477
Premium taxes 96,790 91,021 86,278
Non-deferred acquisition costs 186,387 172,269 134,267
Total $ 600,753 $ 559,167 $ 506,022
Stock-Based Compensation: Globe Life accounts for stock-based compensation by recognizing an expense in the consolidated financial statements based on the “fair value method.” The fair value method requires that a fair value be assigned to a stock option or other stock grant on its grant date and that this value be amortized over the grantees’ service period.
The fair value method requires the use of an option valuation model to value employee stock options. Globe Life has elected to use the Black-Scholes valuation model for option expensing.
A summary of assumptions for options granted in each of the three years 2022 through 2024 is as follows:
2024 2023 2022
Volatility factor 22.0 % 23.0 % 22.3 %
Dividend yield 0.7 % 0.7 % 0.8 %
Expected term (in years) 5.10 5.10 5.12
Risk-free rate 4.3 % 4.1 % 1.9 %
The expected term is generally derived from Company experience. However, expected terms are determined based on the simplified method as permitted under the ASC 718, Stock Compensation, topic when Company experience is insufficient. On April 26, 2018, the shareholders approved the Globe Life Inc. 2018 Incentive Plan, formerly the Torchmark Corporation 2018 Incentive Plan (the "2018 Incentive Plan"). The 2018 Incentive Plan replaced all previous plans. The 2018 Incentive Plan allows for option grants for employees with a seven-year contractual term which vest over three years in addition to ten-year grants which vest over five years as permitted by the previous plans. Director grants vest over six months. Volatility and risk-free interest rates are assumed over a period of time consistent with the expected term of the option. Volatility is measured on a historical basis. Monthly data points are utilized to derive volatility for periods three years and longer. Expected dividend yield is based on current dividend yield held constant over the expected term. Once the fair value of an option has been determined, it is amortized on a straight-line basis over the employee’s service period for that grant (from the grant date to the date the grant is fully vested). Expenses for restricted stock and restricted stock units are based on the grant date fair value allocated on a straight-line basis over the service period. Performance share expense is recognized based on management’s estimate of the probability of meeting the metrics identified in the performance share award agreement, assigned to each service period as these estimates develop.
Stock-based compensation expense is included in “Other operating expense” in the Consolidated Statements of Operations. Globe Life management views all stock-based compensation expense as part of insurance administration expense and, therefore, presents as such in its segment analysis. More information concerning the Company's segments is provided in Note 15-Business Segments.
Earnings per Share: Globe Life presents basic and diluted earnings per common share (EPS) on the face of the Consolidated Statements of Operations for income from operations. Basic EPS is computed by dividing income available to common shareholders by the weighted average common shares outstanding for the period. Diluted EPS is calculated by adding to shares outstanding the additional net effect of potentially dilutive securities or contracts, such as stock options, which could be exercised or converted into common shares. For more information on earnings per share, see Note 13-Shareholders' Equity.
Accounting Pronouncements Adopted in the Current Year: ASU No. 2022-03, Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions, adds disclosure requirements
GL 2024 FORM 10-K
Globe Life Inc.
Notes to Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
specific to equity securities subject to contractual sale restrictions. The disclosures clarify the nature of the contractual sale as well as the duration of the restriction and the circumstances that could cause a lapse in the restriction.
This standard is effective for the Company for fiscal years beginning on January 1, 2024 and interim periods within those fiscal years. The adoption of this standard did not have a material impact on the consolidated financial statements.
ASU No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, adds disclosure requirements to segment expenses, improving the financial reporting of the entity’s overall performance and assessment of future cash flows. The disclosures required more detailed information related to the entity’s reportable segments.
This standard is effective for the Company for annual periods beginning on January 1, 2024 and for interim periods beginning on January 1, 2025, and was implemented on a retrospective basis. Refer to Note 15-Business Segments for further discussion of the Company's segments.
Accounting Pronouncements Yet to be Adopted: ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, adds disclosure requirements to disaggregate information related to the effective tax rate reconciliation and information on income taxes paid. The disclosures will enhance the assessment of the entity’s operations and related tax risks.
This standard is effective for the Company for annual periods beginning on January 1, 2025, and will be implemented on a prospective basis. The Company does not expect the standard will have a material impact on the consolidated financial statements.
ASU No. 2024-03, Income Statement-Reporting Comprehensive Income-Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses, adds disclosure requirements to disaggregate information related to an entity's income statement. The disclosures will allow for enhanced transparency of an entity's expenses.
This standard is effective for the Company for annual periods beginning on January 1, 2027. The Company is evaluating the standard.
Note 2-Statutory Accounting
Our U.S. based life insurance subsidiaries of Globe Life are required to file statutory financial statements with state insurance regulatory authorities. Accounting principles used to prepare these statutory financial statements differ from GAAP. Consolidated net income and shareholders’ equity (capital and surplus) on a statutory basis for the insurance subsidiaries were as follows:
Net Income Shareholders’ Equity
Year Ended December 31, At December 31,
2024 2023 2022 2024 2023
Life insurance subsidiaries $ 688,665 $ 434,952 $ 444,294 $ 1,690,663 $ 1,660,104
The excess, if any, of shareholders' equity of the insurance subsidiaries on a GAAP basis over that determined on a statutory basis is not available for distribution by the insurance subsidiaries to the Parent Company without regulatory approval. Insurance subsidiaries’ statutory capital and surplus necessary to satisfy regulatory requirements in the aggregate was $627 million at December 31, 2024. More information on the restrictions on the payment of dividends can be found in Note 13-Shareholders' Equity.
The Company's statutory financial statements are presented on the basis of accounting practices prescribed by the insurance department of the state of domicile of each insurance subsidiary. While all states have adopted the
GL 2024 FORM 10-K
Globe Life Inc.
Notes to Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
National Association of Insurance Commissioners’ ("NAIC") statutory accounting practices ("NAIC SAP") as the basis for statutory accounting, certain states have retained prescribed practices of their respective insurance code or administrative code which can differ from NAIC SAP. For Globe Life's life insurance companies, there are no significant differences between NAIC SAP and the accounting practices prescribed by the states of domicile.
GL 2024 FORM 10-K
Globe Life Inc.
Notes to Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
Note 3-Supplemental Information about Changes to Accumulated Other Comprehensive Income
Components of Accumulated Other Comprehensive Income: An analysis of the change in balance by component of Accumulated Other Comprehensive Income is as follows for each of the years 2022 through 2024:
Available for Sale Assets Future Policy Benefits Foreign Exchange Pension Adjustments Total
For the year ended December 31, 2022:
Balance at January 1, 2022 $ 2,765,290 $ (6,915,910) $ 19,248 $ (103,676) $ (4,235,048)
Other comprehensive income (loss) before reclassifications, net of tax (4,211,540) 5,546,706 (20,929) 94,055 1,408,292
Reclassifications, net of tax 25,578 - - 10,865 36,443
Other comprehensive income (loss) (4,185,962) 5,546,706 (20,929) 104,920 1,444,735
Balance at December 31, 2022
(1,420,672) (1,369,204) (1,681) 1,244 (2,790,313)
For the year ended December 31, 2023:
Other comprehensive income (loss) before reclassifications, net of tax 529,688 (578,187) 6,400 (3,087) (45,186)
Reclassifications, net of tax 63,388 - - (308) 63,080
Other comprehensive income (loss) 593,076 (578,187) 6,400 (3,395) 17,894
Balance at December 31, 2023
(827,596) (1,947,391) 4,719 (2,151) (2,772,419)
For the year ended December 31, 2024:
Other comprehensive income (loss) before reclassifications, net of tax (494,996) 1,238,349 (26,476) 22,474 739,351
Reclassifications, net of tax 2,974 - - 374 3,348
Other comprehensive income (loss) (492,022) 1,238,349 (26,476) 22,848 742,699
Balance at December 31, 2024
$ (1,319,618) $ (709,042) $ (21,757) $ 20,697 $ (2,029,720)
GL 2024 FORM 10-K
Globe Life Inc.
Notes to Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
Reclassification adjustments: Reclassification adjustments out of Accumulated Other Comprehensive Income are presented below for the three years ended December 31, 2024.
Year Ended December 31, Affected line items in the Statement of Operations
Component Line Item 2024 2023 2022
Unrealized investment (gains) losses on available for sale assets:
Realized (gains) losses $ 14,843 $ 84,416 $ 32,165 Realized (gains) losses
Amortization of (discount) premium (11,079) (4,178) 212 Net investment income
Total before tax 3,764 80,238 32,377
Tax (790) (16,850) (6,799) Income taxes
Total after-tax 2,974 63,388 25,578
Pension adjustments:
Amortization of prior service cost 1,071 1,075 1,077 Other operating expense
Amortization of actuarial (gain) loss (597) (1,465) 12,677 Other operating expense
Total before tax 474 (390) 13,754
Tax (100) 82 (2,889) Income taxes
Total after-tax 374 (308) 10,865
Total reclassification (after-tax)
$ 3,348 $ 63,080 $ 36,443
GL 2024 FORM 10-K
Globe Life Inc.
Notes to Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
Note 4-Investments
Portfolio Composition: Summaries of fixed maturities available for sale by amortized cost, fair value, and allowance for credit losses at December 31, 2024 and 2023, and the corresponding amounts of gross unrealized gains and losses recognized in accumulated other comprehensive income (loss) are as follows. Redeemable preferred stock is included within "Corporates, by sector."
At December 31, 2024
Amortized
Cost Allowance for Credit Losses Gross
Unrealized
Gains Gross
Unrealized
Losses Fair
Value(1)
% of Total
Fixed
Maturities(2)
Fixed maturities available for sale:
U.S. Government direct, guaranteed, and government-sponsored enterprises $ 401,753 $ - $ 1 $ (42,794) $ 358,960 2
States, municipalities, and political subdivisions 3,300,901 - 20,662 (534,759) 2,786,804 16
Foreign governments 36,883 - 18 (8,870) 28,031 -
Corporates, by sector:
Industrials 7,889,074 (7,098) 105,610 (805,330) 7,182,256 42
Financial 5,006,375 - 82,598 (413,043) 4,675,930 27
Utilities 2,081,366 - 39,716 (118,007) 2,003,075 12
Total corporates 14,976,815 (7,098) 227,924 (1,336,380) 13,861,261 81
Collateralized debt obligations 36,923 - 5,943 - 42,866 -
Other asset-backed securities 82,534 (3,297) 39 (2,186) 77,090 1
Total fixed maturities
$ 18,835,809 $ (10,395) $ 254,587 $ (1,924,989) $ 17,155,012 100
(1)Amount reported in the balance sheet.
(2)At fair value.
At December 31, 2023
Amortized
Cost Allowance for Credit Losses Gross
Unrealized
Gains Gross
Unrealized
Losses Fair
Value(1)
% of Total
Fixed
Maturities(2)
Fixed maturities available for sale:
U.S. Government direct, guaranteed, and government-sponsored enterprises $ 398,450 $ - $ 7 $ (32,306) $ 366,151 2
States, municipalities, and political subdivisions 3,296,305 - 47,346 (403,329) 2,940,322 16
Foreign governments 44,453 - 1 (10,348) 34,106 -
Corporates, by sector:
Industrials
8,016,126 (7,115) 213,078 (566,847) 7,655,242 43
Financial 5,028,151 - 112,368 (388,340) 4,752,179 27
Utilities 2,017,967 - 73,925 (94,130) 1,997,762 11
Total corporates 15,062,244 (7,115) 399,371 (1,049,317) 14,405,183 81
Collateralized debt obligations 37,110 - 5,036 - 42,146 -
Other asset-backed securities 86,352 - 3 (4,057) 82,298 1
Total fixed maturities
$ 18,924,914 $ (7,115) $ 451,764 $ (1,499,357) $ 17,870,206 100
(1)Amount reported in the balance sheet.
(2)At fair value.
At December 31, 2024 and 2023, the Company had unfunded commitments of $167 million and $0, respectively, in fixed maturity investments.
GL 2024 FORM 10-K
Globe Life Inc.
Notes to Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
The Company has exposure to real estate investment trusts with an average rating of BBB+, which had a fair value of $405 million (2% of the total fixed maturity portfolio) and $425 million (2% of the total fixed maturity portfolio) at December 31, 2024 and December 31, 2023, respectively.
A schedule of fixed maturities available for sale by contractual maturity date at December 31, 2024, is shown below on an amortized cost basis, net of allowance for credit losses, and on a fair value basis. Actual disposition dates could differ from contractual maturities due to call or prepayment provisions.
At December 31, 2024
Amortized
Cost, net Fair
Value
Fixed maturities available for sale:
Due in one year or less $ 126,902 $ 126,643
Due after one year through five years 728,959 741,488
Due after five years through ten years 1,869,090 1,873,345
Due after ten years through twenty years 8,729,774 8,118,486
Due after twenty years 7,254,503 6,175,067
Mortgage-backed and asset-backed securities 116,186 119,983
$ 18,825,414 $ 17,155,012
Analysis of investment operations: "Net investment income" for the three years ended December 31, 2024 is summarized as follows:
Year Ended December 31,
2024 2023 2022
Fixed maturities available for sale $ 981,439 $ 944,628 $ 910,284
Policy loans 52,625 49,011 46,586
Mortgage loans 27,809 19,541 9,719
Other long-term investments(1)
81,834 54,655 40,837
Short-term investments 11,151 6,322 2,156
1,154,858 1,074,157 1,009,582
Less investment expense (19,227) (17,273) (17,782)
Net investment income
$ 1,135,631 $ 1,056,884 $ 991,800
(1)For the years ended 2024, 2023, and 2022, the investment funds, accounted for under the fair value option method, recorded $74.8 million, $52.3 million, and $40.3 million, respectively, in net investment income. Refer to Other Long-Term Investments below for further discussion on the investment funds.
Selected information about sales of fixed maturities available for sale is as follows:
Year Ended December 31,
2024 2023 2022
Fixed maturities available for sale:
Proceeds from sales(1)
$ 1,207,237 $ 602,556 $ 390,392
Gross realized gains 21,196 5,554 1,296
Gross realized losses (32,956) (80,823) (57,996)
(1)Includes unsettled trades of $866 thousand, $0, and $0 as of December 31, 2024, 2023, and 2022, respectively.
GL 2024 FORM 10-K
Globe Life Inc.
Notes to Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
An analysis of "realized gains (losses)" is as follows:
Year Ended December 31,
2024 2023 2022
Realized investment gains (losses):
Fixed maturities available for sale:
Sales and other(1)
$ (11,563) $ (77,301) $ (32,552)
Provision for credit losses (3,280) (7,115) 387
Fair value option-change in fair value
(16,717) 15,102 (29,353)
Mortgage loans
(3,972) (5,603) (963)
Other investments 2,936 1,792 4,681
Realized gains (losses) from investments
(32,596) (73,125) (57,800)
Other gains (losses)
8,408 7,449 (18,748)
Total realized gains (losses)
(24,188) (65,676) (76,548)
Applicable tax 5,080 13,792 16,075
Realized gains (losses), net of tax
$ (19,108) $ (51,884) $ (60,473)
(1)For the years ended 2024, 2023, and 2022, the Company recorded $105.6 million, $50.9 million, and $147.6 million of issuer-initiated exchanges of fixed maturities (noncash transactions) that resulted in $0, $(1.9) million, and $1.9 million, respectively, in realized gains (losses). During the year ended December 31, 2023, the Company sold $66 million in securities relating to holdings in Signature Bank New York and First Republic Bank, which entered receivership during the first half of 2023.
An analysis of the net change in unrealized investment gains (losses) is as follows:
Year Ended December 31,
2024 2023 2022
Change in unrealized investment gains (losses) on:
Fixed maturities available for sale $ (622,809) $ 750,734 $ (5,298,692)
GL 2024 FORM 10-K
Globe Life Inc.
Notes to Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
Fair value measurements: The following tables represent the fair value of fixed maturities measured on a recurring basis at December 31, 2024 and 2023:
Fair Value Measurement at December 31, 2024:
Quoted Prices in
Active Markets
for Identical
Assets (Level 1) Significant Other
Observable
Inputs (Level 2) Significant
Unobservable
Inputs (Level 3) Total Fair
Value
Fixed maturities available for sale
U.S. Government direct, guaranteed, and government-sponsored enterprises $ - $ 358,960 $ - $ 358,960
States, municipalities, and political subdivisions - 2,786,804 - 2,786,804
Foreign governments - 28,031 - 28,031
Corporates, by sector:
Industrials - 6,998,900 183,356 7,182,256
Financial - 4,551,737 124,193 4,675,930
Utilities - 1,890,559 112,516 2,003,075
Total corporates - 13,441,196 420,065 13,861,261
Collateralized debt obligations - - 42,866 42,866
Other asset-backed securities - 65,907 11,183 77,090
Total fixed maturities
$ - $ 16,680,898 $ 474,114 $ 17,155,012
Percentage of total - % 97 % 3 % 100 %
Fair Value Measurement at December 31, 2023:
Quoted Prices in
Active Markets
for Identical
Assets (Level 1) Significant Other
Observable
Inputs (Level 2) Significant
Unobservable
Inputs (Level 3) Total Fair
Value
Fixed maturities available for sale
U.S. Government direct, guaranteed, and government-sponsored enterprises $ - $ 366,151 $ - $ 366,151
States, municipalities, and political subdivisions - 2,940,322 - 2,940,322
Foreign governments - 34,106 - 34,106
Corporates, by sector:
Industrials - 7,440,493 214,749 7,655,242
Financial - 4,621,160 131,019 4,752,179
Utilities - 1,888,797 108,965 1,997,762
Total corporates - 13,950,450 454,733 14,405,183
Collateralized debt obligations - - 42,146 42,146
Other asset-backed securities - 82,298 - 82,298
Total fixed maturities
$ - $ 17,373,327 $ 496,879 $ 17,870,206
Percentage of total - % 97 % 3 % 100 %
The following tables represent changes in fixed maturities measured at fair value on a recurring basis using significant unobservable inputs (Level 3):
GL 2024 FORM 10-K
Globe Life Inc.
Notes to Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
Analysis of Changes in Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
Asset-
backed
Securities Collateralized
Debt
Obligations Corporates Total
Balance at January 1, 2022
$ - $ 63,505 $ 641,688 $ 705,193
Included in realized gains / losses
- - - -
Included in other comprehensive income - (13,771) (91,385) (105,156)
Acquisitions(1)
- - - -
Sales - - - -
Amortization - 4,519 7 4,526
Other(2)
- (3,889) (72,227) (76,116)
Transfers into Level 3(3)
- - - -
Transfers out of Level 3(3)
- - - -
Balance at December 31, 2022
- 50,364 478,083 528,447
Included in realized gains / losses
- - - -
Included in other comprehensive income - (8,230) 4,541 (3,689)
Acquisitions(1)
- - - -
Sales - - - -
Amortization - 4,569 155 4,724
Other(2)
- (4,557) (28,046) (32,603)
Transfers into Level 3(3)
- - - -
Transfers out of Level 3(3)
- - - -
Balance at December 31, 2023
- 42,146 454,733 496,879
Included in realized gains / losses
- - 740 740
Included in other comprehensive income 37 907 (4,607) (3,663)
Acquisitions(1)
8,948 - 14,800 23,748
Sales - - - -
Amortization - 4,548 217 4,765
Other(2)
- (4,735) (45,818) (50,553)
Transfers into Level 3(3)
2,198 - - 2,198
Transfers out of Level 3(3)
- - - -
Balance at December 31, 2024
$ 11,183 $ 42,866 $ 420,065 $ 474,114
(1)Acquisitions of Level 3 investments in each of the years 2022 through 2024 are comprised of private placement fixed maturities and equities.
(2)Includes capitalized interest, foreign exchange adjustments, and principal repayments.
(3)Considered to be transferred at the end of the period. Transfers into Level 3 occur when observable inputs are no longer available. Transfers out of Level 3 occur when observable inputs become available.
Changes in unrealized gains and losses for Level 3 securities during the period included in accumulated other comprehensive income for assets held at the end of the reporting period:
Asset-
backed
Securities Collateralized
Debt
Obligations Corporates Total
$ - $ (13,771) $ (91,385) $ (105,156)
- (8,230) 4,541 (3,689)
37 907 (4,607) (3,663)
GL 2024 FORM 10-K
Globe Life Inc.
Notes to Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
Transfers between levels within the hierarchy occur when there are changes in the observability of the inputs and market data. Transfers into Level 3 occur when there is little unobservable market activity for the asset/liability as of the measurement date and the Company is required to rely upon internally-developed assumptions or third parties. Transfers out of Level 3 occur when quoted prices in active markets becomes available for identical assets/ liabilities or the ability to corroborate by observable market data.
The following table represents quantitative information about Level 3 fair value measurements:
Quantitative Information about Level 3 Fair Value Measurements
As of December 31, 2024
Fair Value Valuation
Techniques Significant Unobservable
Input Range Weighted-
Average(1)
Private placement fixed maturities $ 420,065 Determination of credit spread Credit rating B to AA
BBB+
Collateralized debt obligations 42,866 Discounted Cash Flows Discount rate 11.75% 11.75%
Asset-backed securities 11,183 Determination of credit spread Credit rating CC - BBB
BB
$ 474,114
(1)Unobservable inputs were weighted by the relative fair value of the instruments.
Private placement fixed maturities and asset-backed securities are valued based on the contractual cash flows discounted by a yield determined as a treasury benchmark rate adjusted for a credit spread. The credit spread is developed from observable indices for similar securities and unobservable indices for private securities or private comparable securities for corresponding credit ratings. The credit ratings for the securities may be considered unobservable inputs, as they are private letter ratings issued by a nationally recognized statistical rating organization or are assigned by the third-party investment manager based on a quantitative and qualitative assessment of the credit underwritten. A higher (lower) credit rating would result in a higher (lower) valuation.
The collateral underlying collateralized debt obligations consists primarily of trust preferred securities issued by banks and insurance companies. Collateralized debt obligations are valued at the present value of expected future cash flows using an unobservable discount rate. Expected cash flows are determined by scheduling the projected repayment of the collateral assuming no future defaults, deferrals, or recoveries. The discount rate is risk-adjusted to take these items into account. A significant increase (decrease) in the discount rate will produce a significant decrease (increase) in fair value. Additionally, a significant increase (decrease) in the cash flow expectations would result in a significant increase (decrease) in fair value. For more information regarding valuation procedures, please refer to Note 1-Significant Accounting Policies under the caption Fair Value Measurements, Investments in Securities.
Unrealized Loss Analysis: The following table discloses information about fixed maturities available for sale in an unrealized loss position.
Less than Twelve Months Twelve Months or Longer Total
Number of issues (CUSIPs) held:
As of December 31, 2024 705 1,498 2,203
As of December 31, 2023 151 1,614 1,765
Globe Life's entire fixed maturity portfolio consisted of 2,552 issues by 1,014 different issuers at December 31, 2024 and 2,473 issues by 980 different issuers at December 31, 2023. The weighted-average quality rating of all unrealized loss positions at amortized cost was A- as of December 31, 2024 and December 31, 2023.
GL 2024 FORM 10-K
Globe Life Inc.
Notes to Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
The following tables disclose unrealized investment losses by class and major sector of fixed maturities available for sale at December 31, 2024 and December 31, 2023.
Analysis of Gross Unrealized Investment Losses
At December 31, 2024
Less than Twelve Months Twelve Months or Longer Total
Fair
Value Unrealized
Loss Fair
Value Unrealized
Loss Fair
Value Unrealized
Loss
Fixed maturities available for sale:
Investment grade securities:
U.S. Government direct, guaranteed, and government-sponsored enterprises $ 11,268 $ (290) $ 347,527 $ (42,504) $ 358,795 $ (42,794)
States, municipalities, and political subdivisions 778,244 (32,894) 1,532,264 (501,865) 2,310,508 (534,759)
Foreign governments - - 24,925 (8,870) 24,925 (8,870)
Corporates, by sector:
Industrials
1,487,940 (73,404) 3,433,034 (690,920) 4,920,974 (764,324)
Financial 961,932 (52,946) 1,785,130 (333,873) 2,747,062 (386,819)
Utilities
546,965 (20,214) 540,077 (90,996) 1,087,042 (111,210)
Total corporates 2,996,837 (146,564) 5,758,241 (1,115,789) 8,755,078 (1,262,353)
Collateralized debt obligations - - - - - -
Other asset-backed securities 23,231 (95) 42,639 (2,091) 65,870 (2,186)
Total investment grade securities 3,809,580 (179,843) 7,705,596 (1,671,119) 11,515,176 (1,850,962)
Below investment grade securities:
Corporates, by sector:
Industrials 54,199 (2,656) 142,638 (38,350) 196,837 (41,006)
Financial 2,990 (53) 126,811 (26,171) 129,801 (26,224)
Utilities 19,263 (1,113) 24,003 (5,684) 43,266 (6,797)
Total corporates 76,452 (3,822) 293,452 (70,205) 369,904 (74,027)
Collateralized debt obligations - - - - - -
Other asset-backed securities - - 2,198 - 2,198 -
Total below investment grade securities 76,452 (3,822) 295,650 (70,205) 372,102 (74,027)
Total fixed maturities
$ 3,886,032 $ (183,665) $ 8,001,246 $ (1,741,324) $ 11,887,278 $ (1,924,989)
Gross unrealized losses may fluctuate quarter over quarter due to factors in the market that affect our holdings, such as changes in interest rates or credit spreads. The Company considers many factors when determining whether an allowance for a credit loss should be recorded. While the Company holds securities that may be in an unrealized loss position from time to time, Globe Life does not generally intend to sell and it is unlikely that the Company will be required to sell the fixed maturities prior to their anticipated recovery or maturity due to the strong cash flows generated by its insurance operations.
GL 2024 FORM 10-K
Globe Life Inc.
Notes to Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
Analysis of Gross Unrealized Investment Losses
At December 31, 2023
Less than Twelve Months Twelve Months or Longer Total
Fair
Value Unrealized
Loss Fair
Value Unrealized
Loss Fair
Value Unrealized
Loss
Fixed maturities available for sale:
Investment grade securities:
U.S. Government direct, guaranteed, and government-sponsored enterprises $ - $ - $ 364,006 $ (32,306) $ 364,006 $ (32,306)
States, municipalities, and political subdivisions 252,800 (3,520) 1,610,163 (399,809) 1,862,963 (403,329)
Foreign governments - - 32,591 (10,348) 32,591 (10,348)
Corporates, by sector:
Industrials 191,573 (3,881) 4,317,827 (530,011) 4,509,400 (533,892)
Financial 242,099 (6,584) 2,341,424 (339,628) 2,583,523 (346,212)
Utilities 81,194 (648) 686,043 (91,959) 767,237 (92,607)
Total corporates 514,866 (11,113) 7,345,294 (961,598) 7,860,160 (972,711)
Collateralized debt obligations - - - - - -
Other asset-backed securities - - 70,956 (3,648) 70,956 (3,648)
Total investment grade securities 767,666 (14,633) 9,423,010 (1,407,709) 10,190,676 (1,422,342)
Below investment grade securities:
Corporates, by sector:
Industrials 10,745 (199) 145,697 (32,756) 156,442 (32,955)
Financial 25,563 (2,602) 151,190 (39,526) 176,753 (42,128)
Utilities - - 19,654 (1,523) 19,654 (1,523)
Total corporates 36,308 (2,801) 316,541 (73,805) 352,849 (76,606)
Collateralized debt obligations - - - - - -
Other asset-backed securities - - 11,288 (409) 11,288 (409)
Total below investment grade securities 36,308 (2,801) 327,829 (74,214) 364,137 (77,015)
Total fixed maturities
$ 803,974 $ (17,434) $ 9,750,839 $ (1,481,923) $ 10,554,813 $ (1,499,357)
Gross unrealized losses increased from $1.50 billion at December 31, 2023 to $1.92 billion at December 31, 2024, an increase of $426 million. The increase in the gross unrealized losses from the prior year was primarily attributable to the increase in market interest rates.
GL 2024 FORM 10-K
Globe Life Inc.
Notes to Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
Fixed Maturities, Allowance for Credit Losses: A summary of the activity in the allowance for credit losses is as follows. Refer to Note 1-Significant Accounting Policies for factors considered in the recording of the allowance for credit losses.
Year Ended December 31,
2024 2023
Allowance for credit losses beginning balance
$ 7,115 $ -
Additions to allowance for which credit losses were not previously recorded 3,297 72,508
Additions (reductions) to allowance for fixed maturities that previously had an allowance (17) (65,393)
Reduction of allowance for which the Company intends to sell or more likely than not will be required to sell or sold during the period - -
Allowance for credit losses ending balance
$ 10,395 $ 7,115
As of December 31, 2024, the Company had one fixed maturity security in non-accrual status with an amortized cost of $5.5 million and an allowance of $3.3 million. As of December 31, 2023, there were no fixed maturities in non-accrual status. During the year ended December 31, 2023, the Company sold $66 million in securities for which there was a provision for credit losses relating to holdings in Signature Bank New York and First Republic Bank, which entered receivership during the first half of 2023.
Concentrations of Credit Risk: Globe Life maintains a diversified investment portfolio with limited concentration in any given issuer. At December 31, 2024, the investment portfolio, at fair value, consisted of the following:
Investment grade fixed maturities:
Corporates 68 %
States, municipalities, and political subdivisions 14
U.S. Government direct, guaranteed, and government-sponsored enterprises 2
Other 1
Below investment grade fixed maturities:
Corporates 2
Other
Policy loans, which are secured by the underlying insurance policy values 4
Other investments 9
100 %
As of December 31, 2024, state and municipal governments represented 14% of invested assets at fair value. Such investments are made throughout the U.S. At December 31, 2024, the state and municipal bond portfolio at fair value was invested in securities issued within the following states: Texas (21%), California (10%), New York (7%), Florida (5%), and Pennsylvania (4%). Otherwise, there was no concentration within any given state greater than 4%.
GL 2024 FORM 10-K
Globe Life Inc.
Notes to Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
Corporate fixed maturities represent 71% of Globe Life's invested assets. These investments are spread across a wide range of industries. Below are the ten largest industry concentrations held in the portfolio of corporate fixed maturities at December 31, 2024, based on fair value:
Insurance 18 %
Electric utilities 11
Banks 7
Oil and natural gas pipelines 6
Chemicals 5
Transportation 4
Telecommunications 3
Food 3
Diversified financial services 3
Real estate investment trusts 3
At December 31, 2024, 2% of invested assets at fair value were represented by fixed maturities rated below investment grade. Par value of these investments was $648 million, amortized cost was $529 million, and fair value was $462 million. While these investments could be subject to additional credit risk, such risk should generally be reflected in their fair value.
Securities, cash, and short-term investments held on deposit with various state and federal regulatory authorities had an amortized cost and fair value, respectively, of $1.0 billion and $955 million at December 31, 2024 and $1.0 billion and $983 million at December 31, 2023.
Mortgage Loans (commercial mortgage loans): Summaries of commercial mortgage loans by property type and geographical location at December 31, 2024 and 2023 are as follows:
2024 2023
Carrying Value % of Total Carrying Value % of Total
Property type:
Multi-family $ 111,234 28 $ 116,299 42
Industrial 110,456 28 57,267 20
Retail 65,612 16 23,925 9
Hospitality 73,931 19 43,897 16
Mixed use 35,960 9 34,749 12
Office 6,539 2 6,734 2
Total recorded investment 403,732 102 282,871 101
Less allowance for credit losses (7,644) (2) (3,672) (1)
Carrying value, net of allowance for credit losses
$ 396,088 100 $ 279,199 100
GL 2024 FORM 10-K
Globe Life Inc.
Notes to Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
2024 2023
Carrying Value % of Total Carrying Value % of Total
Geographic location:
Texas $ 75,131 19 $ 45,111 16
Florida 63,308 16 48,233 17
New Jersey 51,744 13 44,574 16
California 48,371 12 54,721 20
Alabama 35,850 9 11,003 4
New York 34,975 9 20,284 7
Other 94,353 24 58,945 21
Total recorded investment 403,732 102 282,871 101
Less allowance for credit losses (7,644) (2) (3,672) (1)
Carrying value, net of allowance for credit losses
$ 396,088 100 $ 279,199 100
The following tables are reflective of the key factors, debt service coverage ratios, and loan-to-value ("LTV") ratios that are utilized by management to monitor the performance of the portfolios. The Company only makes new investments in commercial mortgage loans that have a LTV ratio less than 80%. LTV ratios that exceed 80% are generally as a result of decreases in the valuation of the underlying property. Generally, a higher LTV ratio and a lower debt service coverage ratio can potentially equate to higher risk of loss.
December 31, 2024
Recorded Investment
Debt Service Coverage Ratios(1)
<1.00x 1.00x-1.20x >1.20x Total % of Gross Total
Loan-to-value ratio(2):
Less than 70% $ 88,507 $ 64,494 $ 196,867 $ 349,868 87
70% to 80% - - - - -
81% to 90% - - - - -
Greater than 90% 16,136 37,728 - 53,864 13
Total $ 104,643 $ 102,222 $ 196,867 403,732 100
Less allowance for credit losses (7,644)
Total, net of allowance for credit losses
$ 396,088
(1)Annual net operating income divided by annual mortgage debt service (principal and interest).
(2)Loan balance divided by stabilized appraised value at origination, including planned renovations and stabilized occupancy. Updated internal valuations are used when a loan is materially underperforming.
GL 2024 FORM 10-K
Globe Life Inc.
Notes to Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
December 31, 2023
Recorded Investment
Debt Service Coverage Ratios(1)
<1.00x 1.00x-1.20x >1.20x Total % of Gross Total
Loan-to-value ratio(2):
Less than 70% $ 27,091 $ 180,761 $ 58,364 $ 266,216 94
70% to 80% - - - - -
81% to 90% 8,468 - 1,153 9,621 3
Greater than 90% 7,034 - - 7,034 3
Total $ 42,593 $ 180,761 $ 59,517 282,871 100
Less allowance for credit losses (3,672)
Total, net of allowance for credit losses
$ 279,199
(1)Annual net operating income divided by annual mortgage debt service (principal and interest).
(2)Loan balance divided by stabilized appraised value at origination, including planned renovations and stabilized occupancy. Updated internal valuations are used when a loan is materially underperforming.
As of December 31, 2024, the Company had 35 loans in the portfolio. During the quarter, the Company evaluated its commercial mortgage loan portfolio on both an individual and pooling basis to determine the allowance for credit losses and determined six loans were collateral dependent or likely to foreclose. The allowance for credit losses on the six loans was determined using the practical expedient which was based on an estimate of fair value of the underlying collateral plus costs to sell the asset. The total principal balance of the six loans was $53.9 million and the allowance for these loans using the practical expedient was $3.9 million as of December 31, 2024. For the year ended December 31, 2024, the allowance for credit losses increased by $4.0 million to $7.6 million.
Year Ended December 31,
2024 2023
Allowance for credit losses beginning balance
$ 3,672 $ 1,789
Provision (reversal) for credit losses 3,972 1,883
Allowance for credit losses ending balance
$ 7,644 $ 3,672
As of December 31, 2024, there were five commercial mortgage loans in non-accrual status with an outstanding principal balance of $53 million. There was also one delinquent commercial mortgage loan with outstanding interest of $31 thousand. At December 31, 2023 the Company had no commercial mortgage loans in non-accrual status. The Company's unfunded commitment balance to commercial loan borrowers was $22 million as of December 31, 2024.
Other Long-Term Investments: Other long-term investments consist of the following assets:
December 31,
2024 2023
Investment funds $ 986,766 $ 795,583
Company-owned life insurance 202,734 -
Other 46,259 40,295
Total
$ 1,235,759 $ 835,878
GL 2024 FORM 10-K
Globe Life Inc.
Notes to Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
The following table presents additional information about the Company's investment funds as of December 31, 2024 and December 31, 2023 at fair value:
Fair Value Unfunded Commitments(2)
Investment Category 2024 2023 2024 Redemption Term/Notice(1)
Commercial mortgage loans $ 566,142 $ 411,315 $ 189,725 Fully redeemable and non-redeemable with varying terms.
Opportunistic and private credit
202,008 181,410 191,192 Fully redeemable and non-redeemable with varying terms.
Infrastructure 179,627 165,887 - Fully redeemable and non-redeemable with varying terms.
Other 38,989 36,971 52,479 Non-redeemable with varying terms
Total investment funds $ 986,766 $ 795,583 $ 433,396
(1) Non-redeemable funds generally have an expected life of 7 to 12 years from fund closing with extension options of 1 to 4 years. Redemptions are paid out throughout the life of the funds at the General Partner's discretion. Redeemable funds can generally be redeemed over 6 to 36 months upon request from limited partners.
(2) Unfunded commitments include unfunded balances during the investment period. After an investment period ends, the fund can call capital based on limited and specified reasons. As of December 31, 2024, unfunded commitments totaled $645 million, including funds past the investment period.
The Company had $239 million of capital called during the period from existing investment funds, as compared to $154 million in 2023. The Company's unfunded commitments were $433 million as of December 31, 2024.
Note 5-Commitments and Contingencies
Reinsurance: Insurance affiliates of Globe Life reinsure a portion of insurance risk that is in excess of their retention limits. Current retention limits for new business written on ordinary life insurance range up to $500 thousand per life. Life insurance ceded represented 0.3% of total life insurance in force at December 31, 2024 and 2023. Insurance ceded on life and accident and health products represented 0.2% of premium income for 2024 and 2023. In the fourth quarter of 2024, the Company entered into a coinsurance agreement to cede a majority of its annuity business to a third-party insurer. Annuities ceded represented 68% of our direct annuity balance. The insurance affiliates of Globe Life would be liable for the reinsured risks ceded to other companies to the extent that such reinsuring companies are unable to meet their obligations.
Insurance affiliates also assume insurance risks of other external companies. Life reinsurance assumed represented 0.8% and 0.9% of life insurance in force at December 31, 2024 and 2023, respectively, and reinsurance assumed on life and accident and health products represented 0.9% and 1.3% of premium income for 2024 and 2023, respectively.
Leases: Globe Life primarily leases office space and other equipment under a variety of operating lease arrangements.
Rental expense for the three years ended December 31, 2024 is as follows:
Year Ended December 31,
2024 2023 2022
Rental expense $ 3,208 $ 3,519 $ 4,239
GL 2024 FORM 10-K
Globe Life Inc.
Notes to Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
Future minimum rental commitments required under operating leases having remaining noncancelable lease terms in excess of one year at December 31, 2024 were as follows:
Year Ended December 31,
2025 2026 2027 2028 2029 Thereafter
Operating lease commitments $ 2,117 $ 1,883 $ 1,417 $ 867 $ 487 $ 4,195
Purchase Commitments: Globe Life has various long-term noncancelable purchase commitments as well as commitments to provide capital for low-income housing tax credit interests. See further discussion related to tax credits in Note 1-Significant Accounting Policies.
Year Ended December 31,
2025 2026 2027 2028 2029 Thereafter
Purchase commitments(1)
$ 47,538 $ 29,742 $ 34,443 $ 15,266 $ 11,440 $ 203,445
(1) Includes low-income housing tax credits with non-funded commitments of $76 million at December 31, 2024.
Investments: Globe Life is committed to invest under certain contracts related to investments in fixed maturities, limited partnerships and commercial mortgage loans. See Note 4-Investments for unfunded commitment table.
Guarantees: At December 31, 2024, Globe Life had no guarantee agreements which were either Parent Company guarantees of subsidiary obligations to a third party or Parent Company guarantees of obligations between wholly-owned subsidiaries. As of December 31, 2024, Globe Life had no liability with respect to these guarantees.
Letters of credit-Globe Life has guaranteed letters of credit in connection with its credit facility with a group of banks as disclosed in Note 12-Debt. The letters of credit were issued by TMK Re, Ltd., a wholly-owned subsidiary, to secure TMK Re, Ltd.’s obligation for claims on certain policies reinsured by TMK Re, Ltd. that were sold by other Globe Life insurance companies. These letters of credit facilitate TMK Re, Ltd.’s ability to reinsure the business of Globe Life's insurance carriers. The agreement was amended on March 29, 2024 and now expires in 2029. The maximum amount of letters of credit available is $250 million. The Parent Company would be liable to the extent that TMK Re, Ltd. does not pay the reinsured party. The amount of letters of credit outstanding at December 31, 2024 was $115 million.
Unclaimed Property Audits: Globe Life subsidiaries are currently the subject of audits regarding the identification, reporting and escheatment of unclaimed property arising from life insurance policies and a limited number of annuity contracts. These audits are being conducted by private entities that have contracted with forty-seven states through their respective Departments of Revenue, and have not resulted in any financial assessment from any state nor indicated any liability. The audits are wide-ranging and seek large amounts of data regarding claims handling, procedures, and payments of contract benefits arising from unreported death claims. No estimate of range can be made at this time for loss contingencies related to possible administrative penalties or amounts that could be payable to the states for the escheatment of abandoned property.
Litigation: Globe Life Inc. and its subsidiaries, in common with the insurance industry in general, are subject to litigation, including: putative class action litigation; alleged breaches of contract; torts, including bad faith and fraud claims based on alleged wrongful or fraudulent acts of agents of the Parent Company's insurance subsidiaries; alleged employment discrimination; alleged worker misclassification; and miscellaneous other causes of action. Based upon information presently available, and in light of legal and other factual defenses available to the Parent Company and its subsidiaries, management does not believe that it is reasonably possible that such litigation will have a material adverse effect on Globe Life Inc.'s financial condition, future operating results or liquidity; however, assessing the eventual outcome of litigation necessarily involves forward-looking speculation as to judgments to be made by judges, juries and appellate courts in the future. This bespeaks caution, particularly in states with reputations for high punitive damage verdicts.
GL 2024 FORM 10-K
Globe Life Inc.
Notes to Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
On July 22, 2022, putative class and collective action litigation was filed against Arias Agencies and American Income (collectively, “Defendants”) in United States District Court for the Western District of Pennsylvania (David Burkes v. Arias Agencies and American Income Life Insurance Company, Case No. 2:22-cv-1054). The complaint alleges that insurance agent trainees should have been classified as employees, and after contracting should have been classified as employees instead of independent contractors. Plaintiff David Burkes is a former Pennsylvania independent sales agent and asserts claims under Pennsylvania law on behalf of a putative class of all individuals who trained to become and/or worked as sales agents for American Income in the three years prior to July 22, 2022 through case conclusion. Burkes makes claims (a) under the Pennsylvania Minimum Wage Act and the Pennsylvania Wage Payment and Collection Law for the alleged failure to pay minimum wage, alleged failure to pay for time spent in training, alleged failure to pay for missed meals and rest breaks, allegedly requiring putative class members to pay for work-related expenses, and allegedly subjecting putative class members to “chargebacks”; (b) for unjust enrichment for allegedly benefiting from the uncompensated labor of putative class members; and (c) for the rescission of putative class members’ agent contracts. Burkes also asserts a collective action on behalf of the same group of individuals for minimum wage, overtime, liquidated damages, and attorney’s fees and costs under the Fair Labor Standards Act for the three years prior to July 22, 2022 through case conclusion, as well as a claim that American Income allegedly did not keep accurate records of hours worked by sales agents. On January 26, 2023, the Court entered an order compelling Burkes to arbitrate his claims on an individual basis and staying the case pending completion of arbitration. Burkes’ individual claims, as well as the individual claims of other former agents who are members of the putative class, are currently pending in arbitration. While no assurances can be made, at present management does not believe that it is reasonably possible or probable that this matter will result in a material loss.
On April 4, 2023, putative class action litigation was filed against National Income Life Insurance Company (“National Income”) in New York Supreme Court by plaintiffs Melissa K. Goppert, Sarah Valente, James O’Neill, Jennifer Abe, and Emily Herendeen (“Plaintiffs”) (Goppert, et al. v. National Income Life Insurance Company, Index No. 153096/2023). Plaintiffs are former National Income independent sales agents who allege they should have been classified as employees and assert claims under New York state law on behalf of a putative class of former independent sales agents and individuals who trained to become independent sale agents since March 2017. Plaintiffs make claims under New York’s Minimum Wage Law (NYLL § 633 and 12 NYCRR § 142-2.1); Overtime Compensation Law (NYLL § 633 and 12 NYCRR § 142-2.2); and “Spread of Hours” Law (12 NYCRR § 142-2.4) for the alleged failure to pay minimum wages and overtime pay, including for time spent in training, and attorney’s fees and costs. National Income filed a motion to compel arbitration of each Plaintiff’s claims on an individual basis, which the Court granted in full on January 11, 2024, and on February 7, 2024, Plaintiffs filed a notice of appeal of the Court’s order. On November 21, 2024, the Court’s order compelling arbitration was affirmed.
On September 1, 2023, plaintiff Miné Caglar Cost (“Plaintiff”) filed a complaint against American Income in the Superior Court of the State of California for the County of Los Angeles, asserting a single claim for violation of the Private Attorneys General Act (“PAGA”) (Cost v. American Income Life Insurance Company, et al., Case No. 23SMCV04113). Plaintiff is a former California independent insurance sales agent who alleges one cause of action for civil penalties under PAGA arising out of alleged violations of the wage-and-hour provisions of the California Labor Code stemming from American Income’s alleged misclassification of Plaintiff and other California-based sales agents as independent contractors. American Income filed a motion to compel arbitration on an individual basis and stay the representative component of Plaintiff’s claims, to which Plaintiff stipulated. On December 12, 2023, the Court approved the parties’ stipulation to compel the matter to individual arbitration and stayed the case pending the completion of the individual arbitration, to commence on October 27, 2025.
On November 30, 2023, Globe Life Inc. and its subsidiary, American Income, received subpoenas from the U.S. Attorney’s Office for the Western District of Pennsylvania, seeking documents relating to sales practices by certain independent sales agents contracted to sell American Income policies. Globe Life Inc. and American Income continue to fully cooperate in responding to the Department of Justice’s requests. The Department of Justice has not asserted any claims or made allegations against Globe Life Inc. and American Income, and Globe Life Inc. currently is not aware that any legal proceedings are contemplated by governmental authorities. While no assurances can be made, at present management does not believe that it is reasonably possible or probable that this matter will result in a material loss.
GL 2024 FORM 10-K
Globe Life Inc.
Notes to Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
In April 2024, Globe Life Inc. received an inquiry from the SEC's Fort Worth Regional Office requesting information related to recent short seller reports making allegations about Globe Life Inc. Globe Life Inc. has provided information in response to the SEC’s requests and continues to cooperate fully with the SEC. At this time, the SEC has not asserted any claims against Globe Life Inc. or indicated that it intends to do so. While no assurances can be made, at present management does not believe that it is reasonably possible or probable that this matter will result in a material loss.
On April 30, 2024, a putative securities class action was filed against Globe Life Inc. and six of its current/former executives and directors in the United States District Court for the Eastern District of Texas (City of Miami Gen. Emp. & Sanitation Emp. Ret. Trust, et al. v. Globe Life Inc., et al., Case No. 4:24-cv-00376). On July 24, 2024, the Court appointed Lead Plaintiffs and Lead Counsel for the putative class of shareholders. The Lead Plaintiffs filed a Consolidated Complaint on October 4, 2024 that asserts claims under §§ 10(b), 20(a), and 20(A) of the Securities Exchange Act of 1934 and SEC Rules 10b-5(a), 10b-5(b), and 10b-5(c) promulgated thereunder, on behalf of a putative class of purchasers of Globe Life Inc.'s securities from May 8, 2019 through April 10, 2024. The Consolidated Complaint adds four additional executives as defendants and alleges that certain of Globe Life Inc.'s disclosures about financial performance and certain other public statements during the putative class period were materially false or misleading. Defendants filed a motion to dismiss the litigation on December 3, 2024. Globe Life Inc. plans to vigorously defend against the lawsuit. Pursuant to Globe Life Inc.'s Restated Certificate of Incorporation and indemnification agreements with the named defendants, Globe Life Inc. has agreed to indemnify those defendants for all expenses and losses related to the litigation, subject to the terms of those indemnification agreements. The outcome of litigation of this type is inherently uncertain, and there is always the possibility that a Court rules in a manner that is adverse to the interests of Globe Life Inc. and the individual defendants. However, the amount of any such loss in that outcome cannot be reasonably estimated at this time. Further, management cannot reasonably estimate whether an outcome on the putative class action will be resolved in the near term.
Also pending in the Eastern District of Texas is a consolidated shareholder derivative suit that is closely related to the putative securities class action disclosed above (the “City of Miami Matter”). On November 7, 2024, Globe Life Inc. shareholder Jui Cheng Hsiao filed a shareholder derivative complaint against Globe Life Inc. as a nominal defendant, as well as certain current and former Globe Life Inc. executives and members of Globe Life Inc.’s Board of Directors. On November 14, 2024, Globe Life Inc. shareholder Gautam Jadhav filed a shareholder derivative complaint against the same set of defendants. Each shareholder derivative complaint asserts one claim for breach of fiduciary duty against the individual defendants and alleges that the individual defendants breached their fiduciary duties to Globe Life Inc. by causing or permitting Globe Life Inc. to make misleading statements about Globe Life Inc.’s performance and financial results. The allegations are substantially similar to the allegations made in the City of Miami Matter and derive from the Fuzzy Panda short seller report. On November 25, 2024, the two shareholder plaintiffs moved to consolidate the two actions into one action and the Court granted the motion on January 3, 2025 (In re Globe Life Inc. Stockholder Derivative Litigation, Lead Case No. 4:24-cv-00993-ALM (E.D. Tex.)). The case is before the same Court as the City of Miami Matter. On January 16, 2025, the parties filed a joint motion to stay such proceedings pending the Court’s resolution of the motion to dismiss filed by Globe Life Inc. in the City of Miami Matter. The Court granted such joint motion to stay the proceedings on January 25, 2025.
On September 26, 2024, Globe Life Inc. and its subsidiary, American Income, were notified by the EEOC that the EEOC conducted an investigation of charges filed against Globe Life Inc. and/or American Income by five former sales agents and one then-current sales agent. The EEOC asserts that there is reasonable cause to believe the six complainants were employees, not independent contractors, of Globe Life Inc. and/or American Income and were discriminated against on the basis of sex, and that one complainant was also discriminated against on the basis of race. In addition, the EEOC asserts that there is reasonable cause to believe that a class of female workers were employees, not independent contractors, and were subject to unlawful conduct which also constitutes a pattern-or-practice of discrimination. The EEOC’s investigative findings are not binding on Globe Life Inc. The EEOC’s procedures provide for a conciliation process that has concluded without achieving a resolution. The EEOC may elect to file a lawsuit in federal court on behalf of the workers based on the alleged statutory violations. The EEOC has not filed any legal proceedings at this time. In the event the EEOC elects to pursue any claims in court, Globe Life Inc. intends to defend against any such lawsuit vigorously. The outcome of litigation of this type would be inherently uncertain and cannot be reasonably estimated or determined at this time. There is always the possibility that a Court rules in a manner that is adverse to the interests of Globe Life Inc.
GL 2024 FORM 10-K
Globe Life Inc.
Notes to Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
Note 6-Policy Liabilities
The liability for future policy benefits is determined based on the net level premium method, which requires the liability be calculated as the present value of estimated future policyholder benefits and the related termination expenses, less the present value of estimated future net premiums to be collected from policyholders.
The following tables summarize balances and changes in the net liability for future policy benefits, before reinsurance, for traditional life long-duration contracts for the three years ended December 31, 2024:
Life
Present value of expected future net premiums
American Income DTC Liberty National Other Total
Balance at January 1, 2022
$ 4,925,192 $ 7,264,905 $ 1,332,469 $ 559,972 $ 14,082,538
Beginning balance at original discount rates 3,906,098 5,533,741 1,040,242 416,141 10,896,222
Effect of changes in assumptions on future cash flows
34,266 79,571 17,719 35,214 166,770
Effect of actual variances from expected experience (121,230) (264,286) (20,027) (10,929) (416,472)
Adjusted balance at January 1, 2022
3,819,134 5,349,026 1,037,934 440,426 10,646,520
Issuances(1)
760,857 663,790 104,982 31,815 1,561,444
Interest accrual(2)
176,102 273,494 51,326 21,150 522,072
Net premiums collected(3)
(491,168) (605,446) (128,119) (44,182) (1,268,915)
Effect of changes in the foreign exchange rate (18,202) - - - (18,202)
Ending balance at original discount rates 4,246,723 5,680,864 1,066,123 449,209 11,442,919
Effect of change from original to current discount rates 26,433 229,360 28,284 21,532 305,609
Balance at December 31, 2022
$ 4,273,156 $ 5,910,224 $ 1,094,407 $ 470,741 $ 11,748,528
Balance at January 1, 2023
$ 4,273,156 $ 5,910,224 $ 1,094,407 $ 470,741 $ 11,748,528
Beginning balance at original discount rates 4,246,723 5,680,864 1,066,123 449,209 11,442,919
Effect of changes in assumptions on future cash flows
14,265 36,170 5,178 8,419 64,032
Effect of actual variances from expected experience (155,293) (306,004) (40,961) (18,441) (520,699)
Adjusted balance at January 1, 2023
4,105,695 5,411,030 1,030,340 439,187 10,986,252
Issuances(1)
733,702 579,363 127,048 27,959 1,468,072
Interest accrual(2)
200,363 287,615 54,147 22,804 564,929
Net premiums collected(3)
(521,521) (613,749) (133,704) (46,001) (1,314,975)
Effect of changes in the foreign exchange rate 5,090 - - - 5,090
Ending balance at original discount rates 4,523,329 5,664,259 1,077,831 443,949 11,709,368
Effect of change from original to current discount rates 158,559 388,392 51,885 34,103 632,939
Balance at December 31, 2023
$ 4,681,888 $ 6,052,651 $ 1,129,716 $ 478,052 $ 12,342,307
GL 2024 FORM 10-K
Globe Life Inc.
Notes to Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
Life
Present value of expected future net premiums
American Income DTC Liberty National Other Total
Balance at January 1, 2024
$ 4,681,888 $ 6,052,651 $ 1,129,716 $ 478,052 $ 12,342,307
Beginning balance at original discount rates 4,523,329 5,664,259 1,077,831 443,949 11,709,368
Effect of changes in assumptions on future cash flows
(82,348) (28,366) (29,292) (982) (140,988)
Effect of actual variances from expected experience (229,772) (311,659) (42,620) (14,436) (598,487)
Adjusted balance at January 1, 2024
4,211,209 5,324,234 1,005,919 428,531 10,969,893
Issuances(1)
798,952 491,440 120,683 23,911 1,434,986
Interest accrual(2)
220,959 292,843 55,198 22,875 591,875
Net premiums collected(3)
(551,066) (603,605) (134,778) (45,041) (1,334,490)
Effect of changes in the foreign exchange rate (23,344) - - - (23,344)
Ending balance at original discount rates 4,656,710 5,504,912 1,047,022 430,276 11,638,920
Effect of change from original to current discount rates (10,793) 117,994 1,425 9,771 118,397
Balance at December 31, 2024
$ 4,645,917 $ 5,622,906 $ 1,048,447 $ 440,047 $ 11,757,317
(1)Issuances represent the present value, using the original discount rate, of the expected net premiums related to new policies issued during each respective period.
(2)The interest accrual is the interest earned on the beginning present value of the expected net premiums, as well as the interest on actual net premiums earned during the period, using the original interest rate.
(3)Net premiums collected represent the product of the current period net premium ratio and the gross premiums collected during the period on the in-force business.
GL 2024 FORM 10-K
Globe Life Inc.
Notes to Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
Life
Present value of expected future policy benefits
American Income DTC Liberty National Other Total
Balance at January 1, 2022
$ 11,773,519 $ 11,859,408 $ 4,542,697 $ 5,488,684 $ 33,664,308
Beginning balance at original discount rates 7,744,201 8,157,259 3,206,164 3,267,306 22,374,930
Effect of changes in assumptions on future cash flows 48,534 104,910 33,457 39,725 226,626
Effect of actual variances from expected experience (127,626) (259,285) (18,535) (12,787) (418,233)
Adjusted balance at January 1, 2022
7,665,109 8,002,884 3,221,086 3,294,244 22,183,323
Issuances(1)
760,856 663,786 105,006 31,815 1,561,463
Interest accrual(2)
410,201 433,611 169,578 195,792 1,209,182
Benefit payments(3)
(382,142) (622,389) (222,690) (118,147) (1,345,368)
Effect of changes in the foreign exchange rate (44,263) - - - (44,263)
Ending balance at original discount rates 8,409,761 8,477,892 3,272,980 3,403,704 23,564,337
Effect of change from original to current discount rates 709,343 747,559 156,276 572,446 2,185,624
Balance at December 31, 2022
$ 9,119,104 $ 9,225,451 $ 3,429,256 $ 3,976,150 $ 25,749,961
Balance at January 1, 2023
$ 9,119,104 $ 9,225,451 $ 3,429,256 $ 3,976,150 $ 25,749,961
Beginning balance at original discount rates 8,409,761 8,477,892 3,272,980 3,403,704 23,564,337
Effect of changes in assumptions on future cash flows 13,344 34,407 6,156 11,661 65,568
Effect of actual variances from expected experience (164,900) (318,687) (46,341) (24,195) (554,123)
Adjusted balance at January 1, 2023
8,258,205 8,193,612 3,232,795 3,391,170 23,075,782
Issuances(1)
733,700 579,365 127,062 27,959 1,468,086
Interest accrual(2)
452,640 458,587 174,995 204,083 1,290,305
Benefit payments(3)
(396,031) (574,812) (196,600) (116,353) (1,283,796)
Effect of changes in the foreign exchange rate 13,319 - - - 13,319
Ending balance at original discount rates 9,061,833 8,656,752 3,338,252 3,506,859 24,563,696
Effect of change from original to current discount rates 1,101,794 1,057,764 267,140 732,764 3,159,462
Balance at December 31, 2023
$ 10,163,627 $ 9,714,516 $ 3,605,392 $ 4,239,623 $ 27,723,158
Balance at January 1, 2024
$ 10,163,627 $ 9,714,516 $ 3,605,392 $ 4,239,623 $ 27,723,158
Beginning balance at original discount rates 9,061,833 8,656,752 3,338,252 3,506,859 24,563,696
Effect of changes in assumptions on future cash flows (104,498) (50,106) (41,836) (2,027) (198,467)
Effect of actual variances from expected experience (251,310) (335,087) (50,759) (20,954) (658,110)
Adjusted balance at January 1, 2024
8,706,025 8,271,559 3,245,657 3,483,878 23,707,119
Issuances(1)
794,225 491,437 120,702 23,912 1,430,276
Interest accrual(2)
492,966 474,451 178,617 210,344 1,356,378
Benefit payments(3)
(426,723) (576,499) (204,757) (136,066) (1,344,045)
Effect of changes in the foreign exchange rate (57,904) - - - (57,904)
Ending balance at original discount rates 9,508,589 8,660,948 3,340,219 3,582,068 25,091,824
Effect of change from original to current discount rates 362,103 464,164 37,298 378,895 1,242,460
Balance at December 31, 2024
$ 9,870,692 $ 9,125,112 $ 3,377,517 $ 3,960,963 $ 26,334,284
(1)Issuances represent the present value, using the original discount rate, of the expected future policy benefits related to new policies issued during each respective period.
(2)The interest accrual is the interest earned on the beginning present value of the expected future policy benefits, as well as the interest on actual benefits and expenses paid during the period, using the original interest rate.
(3)Benefit payments represent the release of the present value, using the original discount rate, of the actual future policy benefits incurred during the period due to death, surrender, and maturity benefit payments based on the revised expected assumptions.
GL 2024 FORM 10-K
Globe Life Inc.
Notes to Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
Life
Net liability for future policy benefits as of December 31, 2022
American Income DTC Liberty National Other Total
Net liability for future policy benefits at original discount rates
$ 4,163,038 $ 2,797,028 $ 2,206,857 $ 2,954,495 $ 12,121,418
Effect of changes in discount rate assumptions 682,910 518,199 127,992 550,914 1,880,015
Other adjustments(1)
115 4,913 7,638 48 12,714
Net liability for future policy benefits, after other adjustments, at current discount rates
4,846,063 3,320,140 2,342,487 3,505,457 14,014,147
Reinsurance recoverable
(123) - (7,477) (34,830) (42,430)
Net liability for future policy benefits, after reinsurance recoverable, at current discount rates
$ 4,845,940 $ 3,320,140 $ 2,335,010 $ 3,470,627 $ 13,971,717
(1)Other adjustments include the Company's effects of capping and flooring the liability (guidance requires an amount not less than zero at the calculation level of the liability for future policy benefits).
Life
Net liability for future policy benefits as of December 31, 2023
American Income DTC Liberty National Other Total
Net liability for future policy benefits at original discount rates
$ 4,538,504 $ 2,992,493 $ 2,260,421 $ 3,062,910 $ 12,854,328
Effect of changes in discount rate assumptions 943,235 669,372 215,255 698,661 2,526,523
Other adjustments(1)
297 3,315 5,764 62 9,438
Net liability for future policy benefits, after other adjustments, at current discount rates
5,482,036 3,665,180 2,481,440 3,761,633 15,390,289
Reinsurance recoverable
(141) - (7,719) (37,848) (45,708)
Net liability for future policy benefits, after reinsurance recoverable, at current discount rates
$ 5,481,895 $ 3,665,180 $ 2,473,721 $ 3,723,785 $ 15,344,581
(1)Other adjustments include the Company's effects of capping and flooring the liability (guidance requires an amount not less than zero at the calculation level of the liability for future policy benefits).
Life
Net liability for future policy benefits as of December 31, 2024
American Income DTC Liberty National Other Total
Net liability for future policy benefits at original discount rates
$ 4,851,879 $ 3,156,036 $ 2,293,197 $ 3,151,792 $ 13,452,904
Effect of changes in discount rate assumptions 372,896 346,170 35,873 369,124 1,124,063
Other adjustments(1)
122 18 - 33 173
Net liability for future policy benefits, after other adjustments, at current discount rates
5,224,897 3,502,224 2,329,070 3,520,949 14,577,140
Reinsurance recoverable
(167) - (7,953) (35,368) (43,488)
Net liability for future policy benefits, after reinsurance recoverable, at current discount rates
$ 5,224,730 $ 3,502,224 $ 2,321,117 $ 3,485,581 $ 14,533,652
(1)Other adjustments include the Company's effects of capping and flooring the liability (guidance requires an amount not less than zero at the calculation level of the liability for future policy benefits).
GL 2024 FORM 10-K
Globe Life Inc.
Notes to Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
The following tables summarize balances and changes in the net liability for future policy benefits for long-duration health contracts for the three years ended December 31, 2024:
Health
Present value of expected future net premiums
United American Family Heritage Liberty National American Income DTC Total
Balance at January 1, 2022
$ 3,611,659 $ 1,944,714 $ 517,368 $ 222,553 $ 121,724 $ 6,418,018
Beginning balance at original discount rates 2,949,851 1,688,590 414,409 178,801 96,776 5,328,427
Effect of changes in assumptions on future cash flows
(195,560) (20,931) 19,846 (17,911) (9,035) (223,591)
Effect of actual variances from expected experience (37,437) (67,419) (39,029) 7,911 (2,301) (138,275)
Adjusted balance at January 1, 2022
2,716,854 1,600,240 395,226 168,801 85,440 4,966,561
Issuances(1)
360,942 241,052 51,827 39,003 8,224 701,048
Interest accrual(2)
122,064 60,303 19,141 7,399 4,554 213,461
Net premiums collected(3)
(258,598) (172,376) (50,752) (21,085) (10,467) (513,278)
Effect of changes in the foreign exchange rate - - - (1,487) - (1,487)
Ending balance at original discount rates 2,941,262 1,729,219 415,442 192,631 87,751 5,366,305
Effect of change from original to current discount rates (32,761) (134,227) 8,048 (2,335) 2,392 (158,883)
Balance at December 31, 2022
$ 2,908,501 $ 1,594,992 $ 423,490 $ 190,296 $ 90,143 $ 5,207,422
Balance at January 1, 2023
$ 2,908,501 $ 1,594,992 $ 423,490 $ 190,296 $ 90,143 $ 5,207,422
Beginning balance at original discount rates 2,941,262 1,729,219 415,442 192,631 87,751 5,366,305
Effect of changes in assumptions on future cash flows
466,883 (30,255) (56,964) (6,061) 16,553 390,156
Effect of actual variances from expected experience (27,178) (69,878) (36,850) (11,152) (2,850) (147,908)
Adjusted balance at January 1, 2023
3,380,967 1,629,086 321,628 175,418 101,454 5,608,553
Issuances(1)
377,097 266,375 59,768 39,825 14,467 757,532
Interest accrual(2)
139,824 67,743 18,255 8,528 4,616 238,966
Net premiums collected(3)
(272,085) (180,031) (51,081) (22,325) (10,657) (536,179)
Effect of changes in the foreign exchange rate - - - 423 - 423
Ending balance at original discount rates 3,625,803 1,783,173 348,570 201,869 109,880 6,069,295
Effect of change from original to current discount rates 71,968 (71,432) 9,902 4,512 5,483 20,433
Balance at December 31, 2023
$ 3,697,771 $ 1,711,741 $ 358,472 $ 206,381 $ 115,363 $ 6,089,728
Balance at January 1, 2024
$ 3,697,771 $ 1,711,741 $ 358,472 $ 206,381 $ 115,363 $ 6,089,728
Beginning balance at original discount rates 3,625,803 1,783,173 348,570 201,869 109,880 6,069,295
Effect of changes in assumptions on future cash flows
9,892 (8,117) (3,463) 12,207 4,449 14,968
Effect of actual variances from expected experience (43,846) (56,720) (29,652) (16,088) (2,937) (149,243)
Adjusted balance at January 1, 2024
3,591,849 1,718,336 315,455 197,988 111,392 5,935,020
Issuances(1)
480,412 265,166 58,538 44,350 26,149 874,615
Interest accrual(2)
174,269 75,188 16,566 9,787 5,838 281,648
Net premiums collected(3)
(297,675) (190,817) (52,284) (24,852) (11,460) (577,088)
Effect of changes in the foreign exchange rate - - - (2,132) - (2,132)
Ending balance at original discount rates 3,948,855 1,867,873 338,275 225,141 131,919 6,512,063
Effect of change from original to current discount rates (63,325) (132,998) (1,156) (1,894) 1,458 (197,915)
Balance at December 31, 2024
$ 3,885,530 $ 1,734,875 $ 337,119 $ 223,247 $ 133,377 $ 6,314,148
(1)Issuances represent the present value, using the original discount rate, of the expected net premiums related to new policies issued during each respective period.
(2)The interest accrual is the interest earned on the beginning present value of the expected net premiums, as well as the interest on actual net premiums earned during the period, using the original interest rate.
(3)Net premiums collected represent the product of the current period net premium ratio and the gross premiums collected during the period on the in-force business.
GL 2024 FORM 10-K
Globe Life Inc.
Notes to Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
Health
Present value of expected future policy benefits
United American Family Heritage Liberty National American Income DTC Total
Balance at January 1, 2022
$ 3,810,559 $ 3,840,322 $ 1,201,317 $ 380,915 $ 119,888 $ 9,353,001
Beginning balance at original discount rates 3,090,901 3,193,342 921,608 285,604 95,628 7,587,083
Effect of changes in assumptions on future cash flows (194,936) (27,211) 18,065 (21,559) (8,270) (233,911)
Effect of actual variances from expected experience (40,316) (70,690) (40,597) 10,402 (2,621) (143,822)
Adjusted balance at January 1, 2022
2,855,649 3,095,441 899,076 274,447 84,737 7,209,350
Issuances(1)
360,642 241,052 52,257 39,006 8,202 701,159
Interest accrual(2)
129,842 120,700 47,719 13,806 4,553 316,620
Benefit payments(3)
(265,500) (120,849) (94,187) (20,413) (12,280) (513,229)
Effect of changes in the foreign exchange rate - - - (3,133) - (3,133)
Ending balance at original discount rates 3,080,633 3,336,344 904,865 303,713 85,212 7,710,767
Effect of change from original to current discount rates (33,804) (330,680) 36,709 9,037 2,320 (316,418)
Balance at December 31, 2022
$ 3,046,829 $ 3,005,664 $ 941,574 $ 312,750 $ 87,532 $ 7,394,349
Balance at January 1, 2023
$ 3,046,829 $ 3,005,664 $ 941,574 $ 312,750 $ 87,532 $ 7,394,349
Beginning balance at original discount rates 3,080,633 3,336,344 904,865 303,713 85,212 7,710,767
Effect of changes in assumptions on future cash flows 464,652 (32,428) (60,437) (6,407) 15,930 381,310
Effect of actual variances from expected experience (26,718) (74,797) (36,910) (12,661) (3,325) (154,411)
Adjusted balance at January 1, 2023
3,518,567 3,229,119 807,518 284,645 97,817 7,937,666
Issuances(1)
376,573 266,375 59,158 39,825 14,446 756,377
Interest accrual(2)
147,082 134,107 45,614 15,070 4,616 346,489
Benefit payments(3)
(300,692) (122,912) (95,471) (24,987) (12,378) (556,440)
Effect of changes in the foreign exchange rate - - - 878 - 878
Ending balance at original discount rates 3,741,530 3,506,689 816,819 315,431 104,501 8,484,970
Effect of change from original to current discount rates 72,798 (190,809) 48,989 20,073 4,981 (43,968)
Balance at December 31, 2023
$ 3,814,328 $ 3,315,880 $ 865,808 $ 335,504 $ 109,482 $ 8,441,002
Balance at January 1, 2024
$ 3,814,328 $ 3,315,880 $ 865,808 $ 335,504 $ 109,482 $ 8,441,002
Beginning balance at original discount rates 3,741,530 3,506,689 816,819 315,431 104,501 8,484,970
Effect of changes in assumptions on future cash flows 10,680 (5,054) (2,775) 20,293 7,733 30,877
Effect of actual variances from expected experience (35,532) (63,595) (30,258) (18,601) (2,420) (150,406)
Adjusted balance at January 1, 2024
3,716,678 3,438,040 783,786 317,123 109,814 8,365,441
Issuances(1)
479,653 265,166 57,862 44,353 26,116 873,150
Interest accrual(2)
180,235 147,615 42,809 16,577 5,837 393,073
Benefit payments(3)
(349,706) (138,777) (93,317) (25,214) (13,792) (620,806)
Effect of changes in the foreign exchange rate - - - (4,128) - (4,128)
Ending balance at original discount rates 4,026,860 3,712,044 791,140 348,711 127,975 9,006,730
Effect of change from original to current discount rates (66,428) (375,498) 13,555 6,592 1,302 (420,477)
Balance at December 31, 2024
$ 3,960,432 $ 3,336,546 $ 804,695 $ 355,303 $ 129,277 $ 8,586,253
(1)Issuances represent the present value, using the original discount rate, of the expected future policy benefits related to new policies issued during each respective period.
(2)The interest accrual is the interest earned on the beginning present value of the expected future policy benefits, as well as the interest on actual benefits and expenses paid during the period, using the original interest rate.
(3)Benefit payments represent the release of the present value, using the original discount rate, of the actual future policy benefits incurred during the period based on the revised expected assumptions.
GL 2024 FORM 10-K
Globe Life Inc.
Notes to Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
Health
Net liability for future policy benefits as of December 31, 2022
United American Family Heritage Liberty National American Income Direct to Consumer Total
Net liability for future policy benefits at original discount rates
$ 139,371 $ 1,607,125 $ 489,423 $ 111,082 $ (2,539) $ 2,344,462
Effect of changes in discount rate assumptions (1,043) (196,453) 28,661 11,372 (72) (157,535)
Other adjustments(1)
4,055 3,172 5,953 48 3,634 16,862
Net liability for future policy benefits, after other adjustments, at current discount rates
142,383 1,413,844 524,037 122,502 1,023 2,203,789
Reinsurance recoverable
(3,820) (9,027) (1,498) - - (14,345)
Net liability for future policy benefits, after reinsurance recoverable, at current discount rates
$ 138,563 $ 1,404,817 $ 522,539 $ 122,502 $ 1,023 $ 2,189,444
(1)Other adjustments include the effects of capping and flooring the liability (guidance requires an amount not less than zero at the calculation level of the liability for future policy benefits).
Health
Net liability for future policy benefits as of December 31, 2023
United American Family Heritage Liberty National American Income Direct to Consumer Total
Net liability for future policy benefits at original discount rates
$ 115,727 $ 1,723,516 $ 468,249 $ 113,562 $ (5,379) $ 2,415,675
Effect of changes in discount rate assumptions 830 (119,377) 39,087 15,561 (502) (64,401)
Other adjustments(1)
10,980 84 9,567 857 6,653 28,141
Net liability for future policy benefits, after other adjustments, at current discount rates
127,537 1,604,223 516,903 129,980 772 2,379,415
Reinsurance recoverable
(3,287) (10,718) (1,317) - - (15,322)
Net liability for future policy benefits, after reinsurance recoverable, at current discount rates
$ 124,250 $ 1,593,505 $ 515,586 $ 129,980 $ 772 $ 2,364,093
(1)Other adjustments include the effects of capping and flooring the liability (guidance requires an amount not less than zero at the calculation level of the liability for future policy benefits).
Health
Net liability for future policy benefits as of December 31, 2024
United American Family Heritage Liberty National American Income Direct to Consumer Total
Net liability for future policy benefits at original discount rates
78,005 1,844,171 452,865 123,570 (3,944) 2,494,667
Effect of changes in discount rate assumptions (3,103) (242,500) 14,711 8,486 (156) (222,562)
Other adjustments(1)
24,920 22 10,310 814 4,865 40,931
Net liability for future policy benefits, after other adjustments, at current discount rates
99,822 1,601,693 477,886 132,870 765 2,313,036
Reinsurance recoverable
(2,768) - (986) - - (3,754)
Net liability for future policy benefits, after reinsurance recoverable, at current discount rates
$ 97,054 $ 1,601,693 $ 476,900 $ 132,870 $ 765 $ 2,309,282
(1)Other adjustments include the effects of capping and flooring the liability (guidance requires an amount not less than zero at the calculation level of the liability for future policy benefits).
Remeasurement Gain or Loss-In accordance with the accounting guidance, the Company reviews, and updates as necessary, its assumptions utilized in the calculation of the liability for future benefits annually in the third quarter and recalculates the net premium ratio. The revised net premium ratio is used to update the liability for future policy
GL 2024 FORM 10-K
Globe Life Inc.
Notes to Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
benefits as of the beginning of the current reporting period, and is compared to the liability using the prior cash flow assumptions. The difference is recorded as a component of the remeasurement gain or loss for the current period, along with the effect of the difference between actual and expected experience for the period. The total remeasurement gain or loss is included in the Consolidated Statements of Operations.
The following tables include the total remeasurement gain or loss, bifurcated between the gain or loss due to differences between actual and expected experience and the amount due to assumption updates, for the three years ended December 31, 2024:
Year Ended December 31,
2024 2023 2022
Life Remeasurement Gain (Loss)-Experience:
American Income $ 19,606 $ 9,430 1,965
Direct to Consumer 21,681 12,201 (2,243)
Liberty National 3,966 5,013 (1,348)
Other 4,872 4,760 1,354
Total Life Remeasurement Gain (Loss)-Experience
50,125 31,404 (272)
Life Remeasurement Gain (Loss)-Assumption Updates:
American Income 21,974 308 (8,707)
Direct to Consumer 21,744 1,763 (25,334)
Liberty National 12,224 (1,248) (7,872)
Other 904 (2,836) (5,241)
Total Life Remeasurement Gain (Loss)-Assumption Updates
56,846 (2,013) (47,154)
Total Life Remeasurement Gain (Loss)
106,971 29,391 (47,426)
Health Remeasurement Gain (Loss)-Experience:
United American (4,890) (134) 3,502
Family Heritage 6,756 4,638 2,395
Liberty National 2,640 628 1,406
American Income 2,742 1,461 (2,545)
Direct to Consumer 22 23 148
Total Health Remeasurement Gain (Loss)-Experience
7,270 6,616 4,906
Health Remeasurement Gain (Loss)-Assumption Updates:
United American 1,205 762 (626)
Family Heritage (3,063) 2,173 6,283
Liberty National (234) 2,171 1,463
American Income (8,036) 119 3,615
Direct to Consumer (373) 8 (80)
Health Remeasurement Gain (Loss)-Assumption Updates
(10,501) 5,233 10,655
Total Health Remeasurement Gain (Loss)
$ (3,231) $ 11,849 15,561
The Company performed its annual review of assumptions during the third quarter. This review process resulted in favorable changes to its mortality and lapse assumptions on life and unfavorable changes to morbidity assumptions on health. Generally, in our life segment mortality assumptions were decreased across most channels in line with recent experience consistent with decreasing levels of excess deaths. Also, for the life segment lapse rate assumptions were slightly increased across all channels. For the health segment, morbidity assumptions were increased, causing higher future policy benefit reserves. The assumption review process of the life and health segments resulted in a $46.3 million net remeasurement gain in the year ended December 31, 2024 as compared to a $3.2 million net remeasurement gain and a $36.5 million net remeasurement loss in the year ended December 31, 2023 and 2022, respectively.
GL 2024 FORM 10-K
Globe Life Inc.
Notes to Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
Excluding the impact of assumption changes, the Company's results for actual variances from expected experience for both life and health produced a $57.4 million net remeasurement gain, a $38.0 million net remeasurement gain, and a $4.6 million net remeasurement gain for the year ended December 31, 2024, 2023, and 2022, respectively.
The following table reconciles the liability for future policy benefits to the Consolidated Balance Sheets as of December 31, 2024, 2023, and 2022:
At Original Discount Rates At Current Discount Rates
As of December 31, As of December 31,
2024 2023
2024 2023
Life(1):
American Income $ 4,851,995 $ 4,538,775 $ 4,163,111 $ 5,224,897 $ 5,482,036 $ 4,846,063
Direct to Consumer 3,156,039 2,992,493 2,797,031 3,502,224 3,665,180 3,320,140
Liberty National 2,293,197 2,260,421 2,206,857 2,329,070 2,481,440 2,342,487
Other 3,151,824 3,062,966 2,954,522 3,520,949 3,761,633 3,505,457
Net liability for future policy benefits-long duration life 13,453,055 12,854,655 12,121,521 14,577,140 15,390,289 14,014,147
Health(1):
United American 100,480 124,021 141,362 99,822 127,537 142,383
Family Heritage 1,844,186 1,723,581 1,607,169 1,601,693 1,604,223 1,413,844
Liberty National 462,712 476,559 494,155 477,886 516,903 524,037
American Income 124,309 114,407 111,128 132,870 129,980 122,502
Direct to Consumer 738 737 979 765 772 1,023
Net liability for future policy benefits-long duration health 2,532,425 2,439,305 2,354,793 2,313,036 2,379,415 2,203,789
Deferred profit liability 178,199 174,717 175,883 178,199 174,717 175,883
Deferred annuity 656,573 773,039 954,318 656,573 773,039 954,318
Interest sensitive life 723,389 732,948 739,105 723,389 732,948 739,105
Other 8,923 9,951 10,106 8,926 9,945 10,099
Total future policy benefits
$ 17,552,564 $ 16,984,615 $ 16,355,726 $ 18,457,263 $ 19,460,353 $ 18,097,341
(1)Balances are presented net of the effects of capping and flooring the liability (guidance requires an amount not less than zero at the calculation level of the liability for future policy benefits).
GL 2024 FORM 10-K
Globe Life Inc.
Notes to Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
The following tables provide the weighted-average original and current discount rates for the liability for future policy benefits and the additional insurance liabilities as of December 31, 2024, 2023, and 2022:
As of December 31,
2024 2023 2022
Original discount rate Current discount rate Original discount rate Current discount rate Original discount rate Current discount rate
Life
American Income 5.7 % 5.4 % 5.7 % 4.9 % 5.8 % 5.2 %
Direct to Consumer 6.0 % 5.5 % 6.0 % 5.0 % 6.0 % 5.2 %
Liberty National 5.6 % 5.5 % 5.6 % 5.0 % 5.6 % 5.2 %
Other 6.2 % 5.5 % 6.2 % 5.0 % 6.2 % 5.2 %
Health
United American 5.1 % 5.2 % 5.1 % 4.8 % 5.2 % 5.1 %
Family Heritage 4.2 % 5.3 % 4.3 % 4.9 % 4.3 % 5.2 %
Liberty National 5.8 % 5.4 % 5.8 % 4.9 % 5.8 % 5.2 %
American Income 5.8 % 5.2 % 5.8 % 4.8 % 5.9 % 5.1 %
Direct to Consumer 5.1 % 5.2 % 5.1 % 4.8 % 5.2 % 5.1 %
The following table provides the weighted-average durations of the liability for future policy benefits and the additional insurance liabilities as of December 31, 2024, 2023, and 2022:
As of December 31,
2024 2023 2022
At original discount rates At current discount rates At original discount rates At current discount rates At original discount rates At current discount rates
Life
American Income 22.73 22.76 23.01 23.45 22.86 23.28
Direct to Consumer 19.24 20.31 19.58 21.21 20.27 21.80
Liberty National 15.30 15.33 15.13 15.81 14.86 15.39
Other 15.99 16.92 16.26 17.92 16.59 18.15
Health
United American 11.72 10.65 11.46 10.89 11.37 10.65
Family Heritage 15.33 14.23 14.99 14.54 14.87 14.22
Liberty National 9.31 9.19 9.17 9.49 9.26 9.47
American Income 12.49 12.56 12.21 12.84 12.12 12.56
Direct to Consumer 11.72 10.65 11.46 10.89 11.37 10.65
GL 2024 FORM 10-K
Globe Life Inc.
Notes to Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
The following tables summarize the amount of gross premiums and interest related to long duration life and health contracts that are recognized in the Consolidated Statements of Operations for the three years ended December 31, 2024:
Life
Year Ended
December 31, 2024 Year Ended
December 31, 2023 Year Ended
December 31, 2022
Gross
Premiums Interest
expense Gross
Premiums Interest
expense Gross
Premiums Interest
expense
American Income $ 1,696,918 $ 272,007 $ 1,587,304 $ 252,277 $ 1,503,537 $ 234,098
Direct to Consumer 977,302 181,470 979,739 170,745 973,429 159,945
Liberty National 367,278 122,727 345,196 120,083 322,497 117,681
Other 202,234 185,619 205,998 179,513 208,390 172,967
Total $ 3,243,732 $ 761,823 $ 3,118,237 $ 722,618 $ 3,007,853 $ 684,691
Health
Year Ended
December 31, 2024 Year Ended
December 31, 2023 Year Ended
December 31, 2022
Gross
Premiums Interest
expense Gross
Premiums Interest
expense Gross
Premiums Interest
expense
United American $ 439,125 $ 5,739 $ 401,834 $ 7,002 $ 380,710 $ 7,532
Family Heritage 427,640 71,900 396,211 65,892 366,803 59,983
Liberty National 189,650 26,144 187,095 27,248 186,268 28,477
American Income 117,644 6,790 113,605 6,542 111,623 6,408
Direct to Consumer 15,033 - 14,283 - 14,290 -
Total $ 1,189,092 $ 110,573 $ 1,113,028 $ 106,684 $ 1,059,694 $ 102,400
Gross premiums are included within life and health premium on the Consolidated Statements of Operations, while the related interest expense is included in life and health policyholder benefits.
GL 2024 FORM 10-K
Globe Life Inc.
Notes to Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
The following tables provide the undiscounted and discounted expected future net premiums, expected future gross premiums, and expected future policy benefits, at both original and current discount rates, for life and health contracts for the three years ended December 31, 2024:
Life
As of December 31, 2024 As of December 31, 2023 As of December 31, 2022
Not discounted At original discount rates At current discount rates Not discounted At original discount rates At current discount rates Not discounted At original discount rates At current discount rates
American Income
PV of expected future gross premiums $ 25,492,032 $ 14,410,088 $ 14,471,277 $ 24,265,464 $ 13,695,495 $ 14,264,077 $ 22,662,540 $ 12,832,811 $ 13,006,579
PV of expected future net premiums 8,233,110 4,656,710 4,645,917 8,001,107 4,523,329 4,681,888 7,480,182 4,246,723 4,273,156
PV of expected future policy benefits 31,831,310 9,508,589 9,870,692 30,623,947 9,061,833 10,163,627 28,318,683 8,409,761 9,119,104
DTC
PV of expected future gross premiums $ 17,372,446 $ 9,077,304 $ 9,258,880 $ 17,506,091 $ 9,150,049 $ 9,761,706 $ 17,346,469 $ 9,086,945 $ 9,432,882
PV of expected future net premiums 10,481,376 5,504,912 5,622,906 10,774,655 5,664,259 6,052,651 10,769,174 5,680,864 5,910,224
PV of expected future policy benefits 25,841,419 8,660,948 9,125,112 25,723,752 8,656,752 9,714,516 25,356,573 8,477,892 9,225,451
Liberty National
PV of expected future gross premiums $ 4,837,598 $ 2,817,204 $ 2,775,304 $ 4,660,783 $ 2,720,264 $ 2,784,916 $ 4,396,685 $ 2,561,304 $ 2,562,342
PV of expected future net premiums 1,849,200 1,047,022 1,048,447 1,897,696 1,077,831 1,129,716 1,885,533 1,066,123 1,094,407
PV of expected future policy benefits 9,073,624 3,340,219 3,377,517 8,905,815 3,338,252 3,605,392 8,613,975 3,272,980 3,429,256
Other
PV of expected future gross premiums $ 3,627,855 $ 1,844,670 $ 1,942,849 $ 3,726,111 $ 1,889,930 $ 2,088,668 $ 3,814,915 $ 1,925,650 $ 2,075,874
PV of expected future net premiums 885,362 430,276 440,047 910,786 443,949 478,052 922,500 449,209 470,741
PV of expected future policy benefits 12,466,943 3,582,068 3,960,963 12,431,963 3,506,859 4,239,623 12,371,696 3,403,704 3,976,150
Total
PV of expected future gross premiums $ 51,329,931 $ 28,149,266 $ 28,448,310 $ 50,158,449 $ 27,455,738 $ 28,899,367 $ 48,220,609 $ 26,406,710 $ 27,077,677
PV of expected future net premiums 21,449,048 11,638,920 11,757,317 21,584,244 11,709,368 12,342,307 21,057,389 11,442,919 11,748,528
PV of expected future policy benefits 79,213,296 25,091,824 26,334,284 77,685,477 24,563,696 27,723,158 74,660,927 23,564,337 25,749,961
As of December 31, 2024 for the life segment using current discount rates, the Company anticipates $28.4 billion of expected future gross premiums and $11.8 billion of expected future net premiums. As of December 31, 2023 and 2022 using current discount rates, the Company anticipated $28.9 billion and $27.1 billion of expected future gross premiums and $12.3 billion and $11.7 billion in expected future net premiums, respectively. For each respective period, only expected future net premiums are included in the determination of the liability for future policy benefits on the balance sheet, while the difference between the expected future gross premiums and the expected future net premiums is not.
GL 2024 FORM 10-K
Globe Life Inc.
Notes to Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
Health
As of December 31, 2024 As of December 31, 2023 As of December 31, 2022
Not discounted At original discount rates At current discount rates Not discounted At original discount rates At current discount rates Not discounted At original discount rates At current discount rates
United American
PV of expected future gross premiums $ 9,350,851 $ 5,738,332 $ 5,643,454 $ 8,682,707 $ 5,295,148 $ 5,396,402 $ 6,801,987 $ 4,285,863 $ 4,233,647
PV of expected future net premiums 6,442,648 3,948,855 3,885,530 5,955,294 3,625,803 3,697,771 4,680,560 2,941,262 2,908,501
PV of expected future policy benefits 6,584,800 4,026,860 3,960,432 6,148,565 3,741,530 3,814,328 4,915,174 3,080,633 3,046,829
Family Heritage
PV of expected future gross premiums $ 7,242,884 $ 4,220,293 $ 3,938,234 $ 6,739,913 $ 3,982,571 $ 3,844,287 $ 6,329,183 $ 3,787,020 $ 3,518,288
PV of expected future net premiums 3,188,017 1,867,873 1,734,875 2,997,954 1,783,173 1,711,741 2,865,334 1,729,219 1,594,992
PV of expected future policy benefits 7,176,690 3,712,044 3,336,546 6,655,694 3,506,689 3,315,880 6,245,843 3,336,344 3,005,664
Liberty National
PV of expected future gross premiums $ 2,039,441 $ 1,299,234 $ 1,316,967 $ 2,089,005 $ 1,325,869 $ 1,390,066 $ 2,271,423 $ 1,418,333 $ 1,458,880
PV of expected future net premiums 500,297 338,275 337,119 518,008 348,570 358,472 652,858 415,442 423,490
PV of expected future policy benefits 1,374,959 791,140 804,695 1,413,211 816,819 865,808 1,600,943 904,865 941,574
American Income
PV of expected future gross premiums $ 1,770,862 $ 992,641 $ 1,012,919 $ 1,768,231 $ 991,448 $ 1,047,348 $ 1,750,393 $ 977,846 $ 1,004,239
PV of expected future net premiums 400,512 225,141 223,247 359,248 201,869 206,381 342,659 192,631 190,296
PV of expected future policy benefits 709,637 348,711 355,303 640,326 315,431 335,504 617,973 303,713 312,750
Direct to Consumer
PV of expected future gross premiums $ 248,646 $ 157,812 $ 159,862 $ 236,776 $ 149,119 $ 156,612 $ 177,131 $ 116,212 $ 119,457
PV of expected future net premiums 208,577 131,919 133,377 174,738 109,880 115,363 133,995 87,751 90,143
PV of expected future policy benefits 204,099 127,975 129,277 163,087 104,501 109,482 127,911 85,212 87,532
Total
PV of expected future gross premiums $ 20,652,684 $ 12,408,312 $ 12,071,436 $ 19,516,632 $ 11,744,155 $ 11,834,715 $ 17,330,117 $ 10,585,274 $ 10,334,511
PV of expected future net premiums 10,740,051 6,512,063 6,314,148 10,005,242 6,069,295 6,089,728 8,675,406 5,366,305 5,207,422
PV of expected future policy benefits 16,050,185 9,006,730 8,586,253 15,020,883 8,484,970 8,441,002 13,507,844 7,710,767 7,394,349
As of December 31, 2024 for the health segment using current discount rates, the Company anticipates $12.1 billion of expected future gross premiums and $6.3 billion of expected future net premiums. As of December 31, 2023 and 2022 using current discount rates, the Company anticipated $11.8 billion and $10.3 billion of expected future gross premiums and $6.1 billion and $5.2 billion in expected future net premiums, respectively. For each respective period, only expected future net premiums are included in the determination of the liability for future policy benefits on the balance sheet, while the difference between the expected future gross premiums and the expected future net premiums is not.
GL 2024 FORM 10-K
Globe Life Inc.
Notes to Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
The following table summarizes the balances of, and changes in, policyholders’ account balances for the three years ended December 31, 2024:
Policyholders' Account Balances
2024 2023 2022
Interest Sensitive Life Deferred Annuity Other Policy-holders' Funds Interest Sensitive Life Deferred Annuity Other Policy-holders' Funds Interest Sensitive Life Deferred Annuity Other Policy-holders' Funds
Balance at January 1,
$ 732,948 $ 773,039 $ 236,958 $739,105 $ 954,318 $ 123,236 $ 745,335 $ 1,033,525 $ 99,468
Issuances - 875 - - 896 - - 1,528 -
Premiums received 20,928 11,332 240,802 22,036 13,209 122,136 23,439 22,873 30,591
Policy charges (12,295) - - (12,926) - - (13,573) - -
Surrenders and withdrawals (22,479) (107,707) (13,897) (21,215) (165,584) (13,042) (21,994) (92,235) (11,615)
Benefit payments (30,512) (43,955) - (29,909) (57,937) - (32,889) (44,456) -
Interest credited 27,790 23,634 21,165 28,320 28,150 9,314 28,579 32,779 4,589
Other 7,009 (645) (16,424) 7,537 (13) (4,686) 10,208 304 203
Balance at December 31,
$ 723,389 $ 656,573 $ 468,604 $ 732,948 $ 773,039 $ 236,958 $ 739,105 $ 954,318 $ 123,236
Weighted-average credit rate 3.82 % 3.31 % 6.00 % 3.85 % 3.26 % 5.17 % 3.85 % 3.30 % 4.12 %
Net amount at risk $ 1,663,496 N/A N/A $ 1,766,170 N/A N/A $ 1,873,315 N/A N/A
Cash surrender value $ 677,111 $ 656,573 $ 468,604 $ 671,596 $ 773,039 $ 236,958 $ 689,546 $ 954,309 $ 123,236
The following tables present the policyholders' account balances by range of guaranteed minimum crediting rates and the related range of difference, if any, in basis points between rates being credited to policy holders and the respective guaranteed minimums as of December 31, 2024, 2023, and 2022:
At December 31, 2024
Range of guaranteed minimum crediting rates Interest Sensitive Life Deferred Annuity Other Policyholders' Funds
At guaranteed minimum:
Less than 3.00%
$ - $ 1,812 $ 373,584
3.00%-3.99%
29,251 473,191 3,182
4.00%-4.99%
604,412 181,570 55,876
Greater than 5.00%
89,726 - 35,962
Total
723,389 656,573 468,604
51-150 basis points above:
Less than 3.00%
- - -
3.00%-3.99%
- - -
4.00%-4.99%
- - -
Greater than 5.00%
- - -
Total
- - -
Grand Total
$ 723,389 $ 656,573 $ 468,604
GL 2024 FORM 10-K
Globe Life Inc.
Notes to Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
At December 31, 2023
Range of guaranteed minimum crediting rates Interest Sensitive Life Deferred Annuity Other Policyholders' Funds
At guaranteed minimum:
Less than 3.00%
$ - $ 1,945 $ 138,684
3.00%-3.99%
29,086 574,939 3,790
4.00%-4.99%
613,704 195,390 6,861
Greater than 5.00%
90,158 765 37,556
Total
732,948 773,039 186,891
51-150 basis points above:
Less than 3.00%
- - -
3.00%-3.99%
- - -
4.00%-4.99%
- - 50,067
Greater than 5.00%
- - -
Total
- - 50,067
Grand Total
$ 732,948 $ 773,039 $ 236,958
At December 31, 2022
Range of guaranteed minimum crediting rates Interest Sensitive Life Deferred Annuity Other Policyholders' Funds
At guaranteed minimum:
Less than 3.00%
$ - $ 2,040 $ 23,042
3.00%-3.99%
28,867 743,299 4,074
4.00%-4.99%
620,594 208,979 58,251
Greater than 5.00%
89,644 - 37,869
Total
739,105 954,318 123,236
51-150 basis points above:
Less than 3.00%
- - -
3.00%-3.99%
- - -
4.00%-4.99%
- - -
Greater than 5.00%
- - -
Total
- - -
Grand Total
$ 739,105 $ 954,318 $ 123,236
GL 2024 FORM 10-K
Globe Life Inc.
Notes to Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
Note 7-Deferred Acquisition Costs
The following tables roll forward the deferred policy acquisition costs for the three years ended December 31, 2024:
Life
American Income DTC Liberty National Other Total
Balance at January 1, 2022
$ 1,960,254 $ 1,583,695 $ 566,419 $ 301,647 $ 4,412,015
Capitalizations 450,600 188,083 90,385 13,504 742,572
Amortization expense (141,108) (94,847) (46,081) (16,805) (298,841)
Foreign exchange adjustment (11,455) - - - (11,455)
Balance at December 31, 2022
$ 2,258,291 $ 1,676,931 $ 610,723 $ 298,346 $ 4,844,291
Balance at January 1, 2023
$ 2,258,291 $ 1,676,931 $ 610,723 $ 298,346 $ 4,844,291
Capitalizations 471,771 159,650 107,230 13,053 751,704
Amortization expense (159,898) (99,464) (51,534) (16,530) (327,426)
Foreign exchange adjustment 3,206 - - - 3,206
Balance at December 31, 2023
$ 2,573,370 $ 1,737,117 $ 666,419 $ 294,869 $ 5,271,775
Balance at January 1, 2024
$ 2,573,370 $ 1,737,117 $ 666,419 $ 294,869 $ 5,271,775
Capitalizations 524,980 145,538 119,203 12,172 801,893
Amortization expense (181,431) (101,425) (56,832) (16,535) (356,223)
Foreign exchange adjustment (16,690) - - - (16,690)
Balance at December 31, 2024
$ 2,900,229 $ 1,781,230 $ 728,790 $ 290,506 $ 5,700,755
Health
United American Family Heritage Liberty National American Income DTC Total
Balance at January 1, 2022
$ 81,140 $ 388,967 $ 127,537 $ 49,406 $ 2,032 $ 649,082
Capitalizations 2,135 53,117 18,737 12,378 4 86,371
Amortization expense (5,881) (25,476) (13,178) (3,467) (182) (48,184)
Foreign exchange adjustment - - - (506) - (506)
Balance at December 31, 2022
$ 77,394 $ 416,608 $ 133,096 $ 57,811 $ 1,854 $ 686,763
Balance at January 1, 2023
$ 77,394 $ 416,608 $ 133,096 $ 57,811 $ 1,854 $ 686,763
Capitalizations 1,941 63,366 20,309 12,849 - 98,465
Amortization expense (5,846) (27,131) (13,464) (3,982) (175) (50,598)
Foreign exchange adjustment - - - 105 - 105
Balance at December 31, 2023
$ 73,489 $ 452,843 $ 139,941 $ 66,783 $ 1,679 $ 734,735
Balance at January 1, 2024
$ 73,489 $ 452,843 $ 139,941 $ 66,783 $ 1,679 $ 734,735
Capitalizations 2,608 70,311 23,775 14,955 2 111,651
Amortization expense (5,567) (27,035) (14,796) (4,678) (148) (52,224)
Foreign exchange adjustment - - - (741) - (741)
Balance at December 31, 2024
$ 70,530 $ 496,119 $ 148,920 $ 76,319 $ 1,533 $ 793,421
GL 2024 FORM 10-K
Globe Life Inc.
Notes to Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
The following table presents a reconciliation of deferred policy acquisition costs to the Consolidated Balance Sheets for the three years ended December 31, 2024:
December 31,
2024 2023 2022
Life
American Income $ 2,900,229 $ 2,573,370 $ 2,258,291
Direct to Consumer 1,781,230 1,737,117 1,676,931
Liberty National 728,790 666,419 610,723
Other 290,506 294,869 298,346
Total DAC-Life
5,700,755 5,271,775 4,844,291
Health
United American 70,530 73,489 77,394
Family Heritage 496,119 452,843 416,608
Liberty National 148,920 139,941 133,096
American Income 76,319 66,783 57,811
Direct to Consumer 1,533 1,679 1,854
Total DAC-Health
793,421 734,735 686,763
Annuity
1,413 2,967 4,643
Total
$ 6,495,589 $ 6,009,477 $ 5,535,697
GL 2024 FORM 10-K
Globe Life Inc.
Notes to Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
Note 8-Liability for Unpaid Claims
Activity in the liability for unpaid health claims is summarized as follows:
Year Ended December 31,
2024 2023 2022
Balance at January 1,
$ 194,809 $ 184,286 $ 173,737
Less reinsurance recoverables
(2,157) (2,084) (2,628)
Net balance at January 1,
192,652 182,202 171,109
Incurred related to:
Current year 767,076 697,521 676,189
Prior years (10,460) (4,853) (15,631)
Total incurred 756,616 692,668 660,558
Paid related to:
Current year 587,473 535,971 517,855
Prior years 152,322 146,247 131,610
Total paid 739,795 682,218 649,465
Net balance at December 31,
209,473 192,652 182,202
Plus reinsurance recoverables
1,521 2,157 2,084
Balance at December 31,
$ 210,994 $ 194,809 $ 184,286
At the end of each period, the liability for unpaid health claims includes an estimate of claims incurred but not yet reported to the Company. Such estimates are updated regularly based upon the Company’s most recent claims data with recognition of emerging experience trends. Due to the nature of the Company’s health business, the payment lags are relatively short and most claims are fully paid within a year from the time incurred. Fluctuations in claims experience can lead to either over or under estimation of the liability for any given year. The difference between the estimate made at the end of the prior period and the actual experience during the period is reflected above under the caption "Incurred related to: Prior years."
Below is the reconciliation of the liability of "Policy claims and other benefits payable" in the Consolidated Balance Sheets.
December 31,
2024 2023
Policy claims and other benefits payable:
Life insurance $ 321,838 $ 320,066
Health insurance 210,994 194,809
Total $ 532,832 $ 514,875
GL 2024 FORM 10-K
Globe Life Inc.
Notes to Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
Note 9-Income Taxes
The following table discloses significant components of income taxes for each year presented:
Year Ended December 31,
2024 2023 2022
Income tax expense (benefit) from operations:
Current income tax expense (benefit) $ 218,135 $ 145,880 $ 138,968
Deferred income tax expense (benefit) 37,740 77,631 68,757
255,875 223,511 207,725
Shareholders’ equity:
Other comprehensive income (loss) 197,427 4,762 384,035
$ 453,302 $ 228,273 $ 591,760
In each of the years 2022 through 2024, deferred income tax expense (benefit) was incurred because of certain differences between net income before income tax expense (benefit) as reported on the Consolidated Statements of Operations and taxable income as reported on Globe Life's income tax returns. As explained in Note 1-Significant Accounting Policies, these differences caused the consolidated financial statement book values of some assets and liabilities to be different from their respective tax bases.
The effective income tax rate differed from the expected U.S. federal statutory rate of 21% as shown below:
Year Ended December 31,
2024 % 2023 % 2022 %
Expected federal income tax expense (benefit)
$ 278,594 21.0 $ 250,796 21.0 $ 231,443 21.0
Increase (reduction) in income taxes resulting from:
Low-income housing investments (9,700) (0.7) (14,291) (1.2) (11,443) (1.1)
Share-based awards 1,341 0.1 (4,724) (0.4) (5,251) (0.5)
Tax-exempt investment income (9,644) (0.7) (9,644) (0.8) (8,961) (0.8)
Other tax credits (5,000) (0.4) - - - -
Other 284 - 1,374 0.1 1,937 0.2
Income tax expense (benefit)
$ 255,875 19.3 $ 223,511 18.7 $ 207,725 18.8
GL 2024 FORM 10-K
Globe Life Inc.
Notes to Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
The tax effects of temporary differences that gave rise to significant portions of the deferred tax assets and deferred tax liabilities are presented below:
December 31,
2024 2023
Deferred tax assets:
Unrealized losses $ 532,756 $ 732,750
Carryover of tax losses 10,342 4,227
Total gross deferred tax assets 543,098 736,977
Less valuation allowance (3,383) -
Net deferred tax assets 539,715 736,977
Deferred tax liabilities:
Employee and agent compensation 104,385 100,689
Deferred acquisition costs 961,406 892,149
Future policy benefits, unearned and advance premiums, and policy claims 228,117 267,564
Other liabilities 24,432 17,466
Total gross deferred tax liabilities 1,318,340 1,277,868
Net deferred tax liability
$ 778,625 $ 540,891
Bermuda Corporate Income Tax Act, The Bermuda Corporate Income Tax Act (the Act) was enacted on December 27, 2023, and included a new corporate income tax (CIT). The Act and CIT go into effect for years beginning after January 1, 2025. The Company is in the process of evaluating the impact the Act will have on the consolidated financial statements; however, the Company does not expect the Act to have a material impact.
Inflation Reduction Act, The Inflation Reduction Act (the Act) was enacted on August 16, 2022, and included a new corporate alternative minimum tax (CAMT). The Act and the CAMT go into effect for tax years beginning after 2022.
Globe Life Inc., as parent of a tax-controlled group, has determined that it does not reasonably expect to be an applicable corporation on a group basis for the taxable year ended December 31, 2024. Therefore, the Company did not calculate or recognize a payable for CAMT in its 2024 financial statements.
Income Tax Return: Globe Life Inc. and its subsidiaries file a life-nonlife consolidated federal income tax return. The statutes of limitations for the Internal Revenue Service's examination and assessment of additional tax are closed for all tax years prior to 2017 with respect to Globe Life's consolidated federal income tax returns. Management concludes that adequate provision has been made in the consolidated financial statements for any potential assessments that may result from current or future tax examinations and other tax-related matters for all open years.
Valuations: Globe Life has a $49.2 million net operating loss (NOL) carryforward at December 31, 2024, of which $7.2 million was created prior to 2018 and will begin to expire in 2035 if not otherwise used to offset future taxable income. The remaining NOL carryforward of $42.0 million may be carried forward indefinitely. A valuation allowance is to be recorded when it is more likely than not that deferred tax assets will not be realized by the Company. A valuation allowance has been established in the amount of $3.4 million related to pre-acquisition NOL carryforward deferred tax assets acquired in 2024 as management has determined that the acquired companies will more than likely not have sufficient taxable income in future periods to realize the deferred tax assets.
Globe Life's tax liability is adjusted to include a provision for uncertain tax positions taken or expected to be taken in a tax return. However, during the years 2022 through 2024, Globe Life did not have any uncertain tax positions which resulted in unrecognized tax benefits.
GL 2024 FORM 10-K
Globe Life Inc.
Notes to Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
Note 10-Postretirement Benefits
Globe Life has qualified noncontributory defined benefit pension plans (Pension Plans) and contributory savings plans that cover substantially all employees. There is also a nonqualified noncontributory supplemental executive retirement plan (SERP) that covers a limited number of officers. The tables included herein will focus on the Pension Plans and SERP.
The total cost of these retirement plans charged to operations was as follows:
Year Ended December 31,
2024 2023 2022
Plan Type:
Defined Contribution Plans(1)
$ 6,605 $ 6,390 $ 5,824
Defined Benefit Pension Plans(2)
16,458 15,225 37,040
(1)401K plans.
(2)Qualified pension plans and SERP.
Globe Life accrues expense for the defined contribution plans based on a percentage of the employees’ contributions. The plans are funded by the employee contributions and a Globe Life contribution equal to the amount of accrued expense. Plan contributions are both mandatory and discretionary, depending on the terms of the plan.
Pension Plans: Cost for the Pension Plans has been calculated on the projected unit credit actuarial cost method. All plan measurements for the pension plans are as of December 31 of the respective year. The pension plans covering the majority of employees are qualified and funded. Contributions are made to funded pension plans subject to minimums required by regulation and maximums allowed for tax purposes.
Globe Life's SERP provides an additional supplemental defined pension benefit to a limited number of officers. The supplemental benefit is based on the participant’s qualified plan benefit without consideration to the regulatory limits on compensation and benefit payments applicable to qualified plans, except that eligible compensation is capped at $1 million. The SERP is nonqualified and unfunded. However, a Rabbi Trust has been established to support the liability for this plan. The Rabbi Trust consists of life insurance policies on the lives of plan participants with an unaffiliated insurance carrier as well as an investment account. Since this plan is nonqualified, the investments and the policyholder value of the insurance policies in the Rabbi Trust are not included as defined benefit plan assets, but rather assets of the Company. They are included in “Other Assets” in the Consolidated Balance Sheets.
Defined benefit and SERP plan contributions were $24.8 million in 2024, $24.4 million in 2023, and $29.8 million in 2022. In 2025, the Company does not expect to increase contributions to the plans from what was contributed in 2024.
GL 2024 FORM 10-K
Globe Life Inc.
Notes to Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
Pension Assets: Plan assets in the funded plans consist primarily of investments in marketable fixed maturities and equity securities that are valued at fair value. Globe Life measures the fair value of its financial assets, including the assets in its benefit plans, in accordance with accounting guidance which establishes a hierarchy for asset values and provides a methodology for the measurement of value. Please refer to Note 1-Significant Accounting Policies under the caption Fair Value Measurements, Investments in Securities for a complete discussion of valuation procedures.
The following table presents the assets of the Company's Pension Plans at December 31, 2024 and 2023:
Pension Assets by Component at December 31, 2024
Fair Value Determined by:
Quoted Prices in
Active Markets
for Identical
Assets (Level 1)
Significant
Observable
Inputs (Level 2)
Significant
Unobservable
Inputs (Level 3) Total
Amount
% of
Total
Exchange traded fund(4)
$ 35,483 $ - $ - $ 35,483 6
Equity exchange traded fund(1)
322,846 - - 322,846 53
U.S. Government and Agency - 179,418 - 179,418 29
Other bonds - 4 - 4 -
Guaranteed annuity contract(2)
- 43,893 - 43,893 7
Short-term investments 1,235 - - 1,235 -
Other 1,420 - - 1,420 -
$ 360,984 $ 223,315 $ - 584,299 95
Other long-term investments(3)
30,546 5
Total pension assets
$ 614,845 100
(1)A fund including marketable securities that mirror the S&P 500 index.
(2)Representing a guaranteed annuity contract issued by Globe Life Inc.'s subsidiary, American Income Life Insurance Company, to fund the obligations of the American Income Life Insurance Company Collective Bargaining Agreement Employees Pension Plan.
(3)Includes non-redeemable investment funds that report the Globe Life Inc. Pension Plan's pro-rata share of the limited partnership's net asset value (NAV) per share, or its equivalent, as a practical expedient for fair value. As of December 31, 2024, the Globe Life Inc. Pension Plan owned less than 1% of two long-term investment funds.
(4)A fund including U.S. dollar-denominated investment-grade securities issued by industrial, utility, and financial companies with maturities greater than 10 years.
GL 2024 FORM 10-K
Globe Life Inc.
Notes to Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
Pension Assets by Component at December 31, 2023
Fair Value Determined by:
Quoted Prices in
Active Markets
for Identical
Assets (Level 1)
Significant
Observable
Inputs (Level 2)
Significant
Unobservable
Inputs (Level 3)
Total
Amount
% of
Total
Exchange traded fund(4)
$ 18,715 $ - $ - $ 18,715 3
Equity exchange traded fund(1)
315,886 - - 315,886 55
U.S. Government and Agency - 167,450 - 167,450 30
Other bonds - 5 - 5 -
Guaranteed annuity contract(2)
- 43,428 - 43,428 8
Short-term investments 6,506 - - 6,506 1
Other 463 - - 463 -
$ 341,570 $ 210,883 $ - 552,453 97
Other long-term investments(3)
18,314 3
Total pension assets
$ 570,767 100
(1)A fund including marketable securities that mirror the S&P 500 index.
(2)Representing a guaranteed annuity contract issued by Globe Life Inc.'s subsidiary, American Income Life Insurance Company, to fund the obligations of the American Income Life Insurance Company Collective Bargaining Agreement Employees Pension Plan.
(3)Includes non-redeemable investment funds that report the Globe Life Inc. Pension Plan's pro-rata share of the limited partnership's net asset value (NAV) per share, or its equivalent, as a practical expedient for fair value. As of December 31, 2023, the Globe Life Inc. Pension Plan owned less than 1% of two long-term investment funds.
(4)A fund including U.S. dollar-denominated investment-grade securities issued by industrial, utility, and financial companies with maturities greater than 10 years.
Globe Life's investment objectives and goals for its plan assets include generating strong risk-adjusted returns, maintaining diversification, investing in accordance with the liabilities of the plan, and satisfying the liquidity needs of the plan. Globe Life seeks to accomplish these objectives by investing in public and private markets and diversifying across asset classes, industries, sectors, and entities. Globe Life intends to maintain an asset mix that when combined with future plan contributions will produce adequate long-term risk adjusted returns relative to expected changes in the liability as a result of changes to interest rates or earned benefits.
The majority of the securities in the portfolio are highly marketable so that there will be adequate liquidity to meet projected payments. There are no specific policies calling for asset durations to match those of benefit obligations.
Allowed investments include equity, fixed income, real assets, and short-term investments. Equity securities include common stocks or equivalents, preferred stocks, and/or funds investing primarily in private or public equity investments. Fixed income securities include loans of corporations or commercial real estate as well as marketable debt securities issued by either the U.S. Government, Agencies of the U.S. Government, state, local and municipal governments, domestic and foreign corporations, Special Purpose Vehicles secured by pools of financial assets, and other U.S. financial institutions. Real Assets include equity interest in core or non-core real estate or infrastructure with U.S. or non-U.S. exposure. Short-term investments consist of fixed income securities maturing in one year or less.
The assets are to be invested in a mix of allowed investments that best serve the objectives of the pension plan. Factors to be considered in determining the asset mix include funded status, annual pension expense, annual pension contributions, and balance sheet liability. The investment portfolio is well diversified to avoid undue exposure to an asset class, sector, industry, business, or security. The Company does not employ any other special risk management techniques, such as derivatives, in managing the pension investment portfolio.
Globe Life's public equity within the pension plan assets consists of an exchange traded fund that mirrors the S&P 500 index which better aligns with a passive approach rather than an actively managed portfolio.
GL 2024 FORM 10-K
Globe Life Inc.
Notes to Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
At December 31, 2024, there were no restricted investments contained in the portfolio. Plan contributions have been invested primarily in fixed maturity and equity securities during the three years ended December 31, 2024.
The following table presents additional information about the Company's investment funds included in pension plan assets as of December 31, 2024 and December 31, 2023 at fair value:
Fair Value Unfunded Commitments(2)
Investment Category 2024 2023 2024 Redemption Term/Notice(1)
Multi-asset class $ 12,383 $ 14,714 $ - Non-redeemable
Private equity 18,163 3,600 48,167 Non-redeemable
Total
$ 30,546 $ 18,314 $ 48,167
(1) Non-redeemable funds generally have an expected life of 7 to 10 years from fund closing with extension options of 2 to 4 years. Redemptions are paid out throughout the life of the funds at the General Partner's discretion.
(2) Unfunded commitments include unfunded balances during the investment period. After an investment period ends, the fund can call capital based on limited and specified reasons. As of December 31, 2024, unfunded commitments totaled $57.5 million, including funds past the investment period.
SERP: The following tables include premiums paid for COLI for the three years ended December 31, 2024 and investments of the Rabbi Trust for the two years ended December 31, 2024:
Year Ended December 31,
2024 2023 2022
Premiums paid for insurance coverage $ 443 $ 443 $ 443
At December 31,
2024 2023
Total investments:
COLI $ 57,210 $ 55,185
Exchange traded funds 98,314 86,156
$ 155,524 $ 141,341
Pension Plans and SERP Liabilities: The following table presents the projected benefit obligation (PBO) and accumulated benefit obligation (ABO) for the Pension Plans and SERP at December 31, 2024 and 2023:
December 31,
2024 2023
PBO ABO PBO ABO
Pension plans $ 561,615 $ 500,010 $ 554,957 $ 493,040
SERP 73,441 68,428 72,603 69,332
Benefit obligation
$ 635,056 $ 568,438 $ 627,560 $ 562,372
For the year ended December 31, 2024, the Pension Plans have plan assets with fair values in excess of projected benefit obligations. The projected benefit obligations and the fair value of plan assets were as follows:
At December 31,
2024 2023
Funded benefit pension plans PBO $ 561,615 $ 554,957
Funded benefit pension plans fair value of plan assets 614,845 570,767
GL 2024 FORM 10-K
Globe Life Inc.
Notes to Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
For the year ended December 31, 2024, the funded benefit pension plans have plan assets with fair value in excess of the accumulated benefit obligations. The accumulated benefit obligations and the fair value of plan assets were as follows:
At December 31,
2024 2023
Funded benefit pension plans ABO $ 500,010 $ 493,040
Funded benefit pension plans fair value of plan assets 614,845 570,767
The following table discloses the assumptions used to determine Globe Life's pension liabilities and costs for the appropriate periods. The discount and compensation increase rates are used to determine current year projected benefit obligations and subsequent year pension expense. The long-term rate of return is used to determine current year expense. Differences between assumptions and actual experience are included in actuarial gain or loss.
Weighted Average Pension Plan Assumptions
For Benefit Obligations at December 31: 2024 2023
Discount rate 5.81 % 5.40 %
Rate of compensation increase 4.46 4.40
For Periodic Benefit Cost for the Year: 2024 2023 2022
Discount rate 5.40 % 5.71 % 3.19 %
Expected long-term returns 7.18 6.98 6.98
Rate of compensation increase 4.40 4.40 4.43
The discount rate is determined based on the expected duration of plan liabilities. A yield is then derived based on the current market yield of a hypothetical portfolio of high quality corporate bonds that match the liability's average life. The rate of compensation increase is projected based on Company experience, modified as appropriate for future expectations. The expected long-term rate of return on plan assets is management’s best estimate of the average rate of earnings expected to be received on the assets invested in the plan over the benefit period. In determining this assumption, consideration is given to the historical rate of return earned on the assets, the projected returns over future periods, and the discount rate used to compute benefit obligations.
Net Periodic Benefit Cost: The following table presents the net periodic benefit cost for the defined benefit plans by expense component for the three years ended December 31, 2024 as follows:
Components of Net Periodic Benefit Cost
Year Ended December 31,
2024 2023 2022
Service cost-benefits earned during the period $ 24,898 $ 21,568 $ 34,624
Interest cost on projected benefit obligation 33,123 31,367 24,445
Expected return on assets (42,580) (38,625) (35,539)
Amortization of prior service cost (credit) 1,071 1,075 1,077
Recognition of actuarial gain (loss) (54) (160) 12,433
Net periodic benefit cost
$ 16,458 $ 15,225 $ 37,040
GL 2024 FORM 10-K
Globe Life Inc.
Notes to Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
An analysis of the impact on other comprehensive income (loss) concerning pensions and other postretirement benefits is as follows:
Year Ended December 31,
2024 2023 2022
Balance at January 1
$ (2,727) $ 1,570 $ (131,239)
Amortization of:
Prior service cost (credit) 1,071 1,075 1,077
Net actuarial (gain) loss(1)
(597) (1,465) 12,677
Total amortization 474 (390) 13,754
Plan amendments (1,212) - -
Experience gain (loss)(2)
29,659 (3,907) 119,055
Balance at December 31
$ 26,194 $ (2,727) $ 1,570
(1)Includes amortization of postretirement benefits other than pensions of $(622) thousand in 2024, $(732) thousand in 2023, and $289 thousand in 2022.
(2)The increase in the experience gain (loss) is related to an increase in discount rate.
The following table presents a reconciliation from the beginning to the end of the year of the PBO for the Pension Plans and SERP, and the plan assets for the Pension Plans. This table also presents the amounts previously recognized as a component of accumulated other comprehensive income.
Pension Benefits
Year Ended December 31,
2024 2023
Changes in PBO:
PBO at beginning of year $ 627,560 $ 562,567
Service cost 24,898 21,568
Interest cost 33,123 31,367
Plan amendments 1,212 -
Actuarial loss (gain) (22,964) 40,569
Benefits paid (28,773) (28,511)
PBO at end of year 635,056 627,560
Changes in plan assets:
Fair value at beginning of year 570,767 499,775
Return on assets 48,084 75,062
Contributions 24,767 24,441
Benefits paid (28,773) (28,511)
Fair value at end of year 614,845 570,767
Funded status at year end
$ (20,211) $ (56,793)
Changes in the PBO related to actuarial losses (gains) are primarily attributed to changes in the discount rate.
Year Ended December 31,
Amounts recognized in accumulated other comprehensive income consist of: 2024 2023
Net loss (gain) $ (28,720) $ (227)
Prior service cost 6,636 6,494
Net amounts recognized at year end $ (22,084) $ 6,267
GL 2024 FORM 10-K
Globe Life Inc.
Notes to Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
Globe Life has estimated its expected postretirement benefits to be paid over the next ten years as of December 31, 2024. These estimates use the same assumptions that measure the benefit obligation at December 31, 2024, taking estimated future employee service into account. Those estimated benefits are as follows:
For the year(s):
2025 $ 31,035
2026 33,565
2027 36,259
2028 39,032
2029 41,865
2030-2034 243,598
Note 11-Supplemental Disclosures of Cash Flow Information
The following table summarizes Globe Life's noncash transactions for the three years ended December 31, 2024, which are not reflected on the Consolidated Statements of Cash Flows:
Year Ended December 31,
2024 2023 2022
Stock-based compensation not involving cash $ 40,118 $ 30,736 $ 35,650
Commitments for low-income housing interests 35,000 - 136,882
Exchanges of fixed maturity investments 105,595 50,936 147,612
Net unsettled security trades 2,334 3,833 -
Noncash tax credits
- 1,083 1,000
The following table summarizes certain amounts paid during the period:
Year Ended December 31,
2024 2023 2022
Interest paid $ 116,993 $ 99,545 $ 88,814
Income taxes paid(1)
175,400 121,034 114,888
(1)Income taxes paid includes cash paid of $47 million, $0 and $0 for the purchase of transferable tax credits as of December 31, 2024, 2023 and 2022, respectively.
GL 2024 FORM 10-K
Globe Life Inc.
Notes to Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
Note 12-Debt
On August 23, 2024, Globe Life completed the issuance of $450 million principal amount of 5.85% Senior notes due September 15, 2034. Total proceeds received by the Parent Company from the issuance, net of the underwriters’ discount, were $445 million. The proceeds were used for general corporate purposes, which included open market purchases of shares of its common stock under its share repurchase program. On August 15, 2024, Globe Life amended its term loan agreement increasing the principal amount from $170 million to $250 million, an increase of $80 million. The amendment extends the maturity date from November 11, 2024 to August 15, 2027.
The following table presents information about the terms and outstanding balances of Globe Life's debt.
Selected Information about Debt Issues
As of December 31,
2024 2023
Instrument Issue Date Maturity Date Coupon Rate Par
Value Unamortized Discount & Issuance Costs Book
Value Fair
Value Book
Value
Senior notes 09/27/2018 09/15/2028 4.550% $ 550,000 $ (3,001) $ 546,999 $ 542,811 $ 546,283
Senior notes 08/21/2020 08/15/2030 2.150% 400,000 (2,868) 397,132 338,524 396,670
Senior notes(1)
05/19/2022 06/15/2032 4.800% 250,000 (3,728) 246,272 241,083 245,873
Senior notes
08/23/2024 09/15/2034 5.850% 450,000 (5,186) 444,814 451,665 -
Junior subordinated debentures 11/17/2017 11/17/2057 5.275% 125,000 (1,557) 123,443 95,865 123,427
Junior subordinated debentures 06/14/2021 06/15/2061 4.250% 325,000 (7,613) 317,387 204,620 317,306
Term loan(2)
05/11/2023 08/15/2027 5.998% 250,000 (1,796) 248,204 248,204 -
Total long-term debt
2,350,000 (25,749) 2,324,251 2,122,772 1,629,559
Term loan(2)
- - - - 169,549
Commercial paper 419,000 (3,599) 415,401 415,401 316,564
Total short-term debt
419,000 (3,599) 415,401 415,401 486,113
Total debt
$ 2,769,000 $ (29,348) $ 2,739,652 $ 2,538,173 $ 2,115,672
(1)An additional $150 million par value and book value is held by insurance subsidiaries that eliminates in consolidation.
(2)Interest calculated quarterly using Secured Overnight Financing Rate (SOFR) plus 135 basis points.
The commercial paper has the highest priority of all unsecured debt, followed by senior notes then junior subordinated debentures. The senior notes are callable under a make-whole provision, and the junior subordinated debentures are subject to an optional redemption five years from issuance. Interest on the 4.25% junior subordinated debentures and the term loan are payable quarterly while all other long-term debt is payable semi-annually.
GL 2024 FORM 10-K
Globe Life Inc.
Notes to Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
Contractual Debt Obligations: The following table presents expected scheduled principal payments under our contractual debt obligations:
Year Ended December 31,
2025 2026 2027 2028 2029 Thereafter
Debt obligations $ 419,000 $ - $ 250,000 $ 550,000 $ - $ 1,550,000
Credit Facility: On March 29, 2024, Globe Life amended the credit agreement dated September 30, 2021, which provides for a $1 billion revolving credit facility that may be increased to $1.25 billion upon approval of the participating banks. The amended credit facility matures March 29, 2029 and may be extended up to two one-year periods upon the Company's request. Pursuant to this agreement, the participating lenders have agreed to make revolving loans to Globe Life and to issue secured or unsecured letters of credit. The Company has not drawn on any of the credit to date. The facility is further designated as a back-up credit line for a commercial paper program under which the Company may either borrow from the credit line or issue commercial paper at any time, with total commercial paper outstanding not to exceed the facility maximum of $1 billion, less any letters of credit issued. Interest is charged at variable rates. In accordance with the agreement, Globe Life is subject to certain covenants regarding capitalization. As of December 31, 2024, the Company was in full compliance with these covenants.
Commercial paper outstanding and any long-term debt due within one year are reported as short-term debt on the Consolidated Balance Sheets. The following tables present selected information concerning Globe Life's commercial paper borrowings.
Credit Facility-Commercial Paper
(Dollar amounts in thousands)
At December 31,
2024 2023
Balance commercial paper at end of period (at par value)
$ 419,000 $ 319,000
Annualized interest rate 5.22 % 5.71 %
Letters of credit outstanding $ 115,000 $ 115,000
Remaining amount available under credit line 466,000 316,000
Credit Facility-Commercial Paper Activity
(Dollar amounts in thousands)
Year Ended December 31,
2024 2023 2022
Average balance of commercial paper outstanding during period (par value)
$ 405,573 $ 290,024 $ 322,531
Daily-weighted average interest rate (annualized) 5.65 % 5.40 % 1.89 %
Maximum daily amount outstanding during period (par value)
$ 633,425 $ 477,700 $ 500,529
Commercial paper issued during period (par value)
2,052,056 2,029,000 2,269,444
Commercial paper matured during period (par value) (1,952,056) (1,995,000) (2,314,477)
Net commercial paper issued (matured) during period (par value)
100,000 34,000 (45,033)
The Company increased the commercial paper borrowings by $100 million from the prior year. The Company was able to issue commercial paper as needed under this facility during the year ended December 31, 2024 and 2023.
Federal Home Loan Bank: FHLB membership provides certain of our insurance subsidiaries with access to various low-cost collateralized borrowings and funding agreements. The membership requires ownership of FHLB common stock, as well as the purchase of activity-based common stock equal to approximately 4.1% of outstanding borrowings.
GL 2024 FORM 10-K
Globe Life Inc.
Notes to Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
Globe Life owned $34.5 million in FHLB common stock as of December 31, 2024 and $22.3 million as of December 31, 2023. The FHLB stock is restricted for the duration of the membership and recorded at cost (par) as required by applicable guidance. The FHLB stock is included in "Other long-term investments" in the Consolidated Balance Sheets. Borrowings with the FHLB are subject to the availability of pledged assets at the insurance subsidiaries of Globe Life. As of December 31, 2024, Globe Life's insurance subsidiaries maximum borrowing capacity under the FHLB facility was approximately $730 million, net of outstanding funding agreements and short-term borrowings, on pledged assets with a fair value of $1.3 billion. As of December 31, 2024, $372 million in funding agreements were outstanding with the FHLB, compared to $138 million as of December 31, 2023. This amount is included in "Other policyholders' funds" in the Consolidated Balance Sheets. The Company had no short-term borrowings from the FHLB as of December 31, 2024 and 2023.
Note 13-Shareholders' Equity
Share Data: A summary of common share activity is presented in the following chart.
Common Stock
Issued Treasury
Stock
2022:
Balance at January 1, 2022 109,218,183 (9,650,845)
Grants of restricted stock - 10,746
Vesting of performance shares - 66,751
Issuance of common stock due to exercise of stock options - 1,519,728
Treasury stock acquired - (4,424,668)
Retirement of treasury stock (4,000,000) 4,000,000
Balance at December 31, 2022
105,218,183 (8,478,288)
2023:
Grants of restricted stock - 7,110
Vesting of performance shares - 84,298
Issuance of common stock due to exercise of stock options - 1,375,313
Treasury stock acquired - (4,415,287)
Retirement of treasury stock (3,000,000) 3,000,000
Balance at December 31, 2023
102,218,183 (8,426,854)
2024:
Grants of restricted stock - 7,375
Vesting of performance shares - 143,211
Issuance of common stock due to exercise of stock options - 584,993
Treasury stock acquired - (10,549,341)
Retirement of treasury stock (5,000,000) 5,000,000
Balance at December 31, 2024
97,218,183 (13,240,616)
There was no activity related to the preferred stock in years 2022 through 2024.
GL 2024 FORM 10-K
Globe Life Inc.
Notes to Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
Acquisition of Common Shares: Globe Life shares are acquired through open market purchases under the Globe Life stock repurchase program when it is determined to be the best use of Globe Life's excess cash flows. This yields a return that is better than available alternatives and exceeds our cost of equity. When stock options are exercised, proceeds from the exercises are generally used to repurchase approximately the number of shares available with those funds in order to reduce dilution. See the following summary below:
Globe Life Share Repurchase Program Share Repurchase for Dilution Purposes
Shares Acquired
(in thousands) Total Cost Average Price Shares Acquired
(in thousands) Total Cost Average Price
10,086 $ 945,637 $ 93.76 501 $ 48,026 $ 95.75
3,369 380,103 112.84 1,080 127,155 117.72
3,322 335,145 100.90 1,103 119,493 108.33
Restrictions: Restrictions exist on the flow of funds to Globe Life Inc. from its insurance subsidiaries. Statutory regulations require life insurance subsidiaries to maintain certain minimum amounts of capital and surplus. Dividends from insurance subsidiaries of Globe Life Inc. are restricted based on regulations by their states of domicile. Additionally, insurance company distributions are generally not permitted in excess of statutory surplus. Subsidiaries are also subject to certain minimum capital requirements. Subsidiaries of Globe Life paid cash dividends to the Parent Company in the amount of $693 million in 2024, $460 million in 2023, and $407 million in 2022. As of December 31, 2024, dividends from our U.S. insurance subsidiaries to the Parent Company available to be paid in 2025 are limited to the amount of $664 million without regulatory approval, such that $1.03 billion was considered restricted net assets of the subsidiaries. Dividends exceeding these limitations may be available during the year pending regulatory approval. While there are no legal restrictions on the payment of dividends to shareholders from Globe Life's retained earnings, retained earnings as of December 31, 2024 were restricted by lenders’ covenants which require the Company to maintain and not distribute $5.5 billion from its total consolidated retained earnings of $8.0 billion.
Earnings per Share: A reconciliation of basic and diluted weighted-average shares outstanding used in the computation of basic and diluted earnings per share is as follows:
Year Ended December 31,
2024 2023 2022
Basic weighted average shares outstanding 89,278,574 95,098,474 97,927,770
Weighted average dilutive options outstanding 382,848 1,265,367 1,056,874
Diluted weighted average shares outstanding 89,661,422 96,363,841 98,984,644
Antidilutive shares 2,140,787 422,739 31,269
Antidilutive shares are excluded from the calculation of diluted earnings per share. All antidilutive shares noted above result from outstanding out of the money employee and Director stock options.
GL 2024 FORM 10-K
Globe Life Inc.
Notes to Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
Note 14-Stock-Based Compensation
Globe Life's stock-based compensation consists of stock options, restricted stock, restricted stock units, and performance shares. Certain employees and members of the board of directors (directors) have been granted fixed equity options to buy shares of Globe Life stock at the market value of the stock on the date of grant, under the provisions of the Globe Life stock option plans. The options are exercisable during the period commencing from the date they vest until expiring according to the terms of the grant. Options generally expire the earlier of employee termination or option contract term, which are either seven-year or ten-year terms. However, depending on the circumstances of termination, options may be exercised for a period of time following termination of employment or upon death or disability. Options generally vest in accordance with the following schedule:
Shares vested by period
Contract Period 6 Months Year 1 Year 2 Year 3 Year 4 Year 5
Directors
7 years 100% -% -% -% -% -%
Employees
7 years -% -% 50% 50% -% -%
All employee options vest immediately upon retirement on or after the attainment of age 65, upon death, or disability. Globe Life generally issues shares for the exercise of stock options from treasury stock. The Company generally uses the proceeds from option exercises to buy shares of Globe Life common stock in the open market to reduce the dilution from option exercises.
A summary of stock compensation activity for each of the three years ended December 31, 2024 is presented below:
2024 2023 2022
Stock-based compensation expense recognized(1)
$ 40,118 $ 30,736 $ 35,650
Tax benefit recognized 7,085 11,178 12,738
(1)No stock-based compensation expense was capitalized in any period in accordance with applicable GAAP.
Additional stock compensation information is as follows at December 31:
2024 2023
Unrecognized compensation(1)
$ 46,956 $ 36,599
Weighted average period of expected recognition (in years)(1)
0.53 0.53
(1)Includes stock options, restricted stock units and performance shares.
No equity awards were cash settled during the three years ended December 31, 2024.
Options: The following table summarizes information about stock options outstanding at December 31, 2024.
Options Outstanding Options Exercisable
Range of
Exercise Prices Number
Outstanding Weighted-
Average
Remaining
Contractual
Life (Years) Weighted-
Average
Exercise
Price Number
Exercisable Weighted-
Average
Exercise
Price
$50.64 - $87.60
1,609,506 1.48 $ 81.93 1,609,506 $ 81.93
92.40 - 100.74
1,994,603 2.66 99.47 1,994,603 99.47
103.23
1,187,349 4.15 103.23 734,148 103.23
105.56 - 128.40
1,034,499 5.56 123.96 38,179 108.55
$50.64 - $128.40
5,825,957 3.15 $ 99.74 4,376,436 $ 93.73
GL 2024 FORM 10-K
Globe Life Inc.
Notes to Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
An analysis of option activity for each of the three years ended December 31, 2024, is as follows:
2024 2023 2022
Options Weighted-Average
Exercise Price Options Weighted-Average
Exercise Price Options Weighted-Average
Exercise Price
Outstanding-beginning of year
5,940,320 $ 96.19 6,962,374 $ 91.73 7,197,662 $ 85.11
Granted:
7-year term
520,810 128.32 497,060 120.49 1,300,211 103.20
Exercised (584,993) 88.52 (1,375,313) 82.95 (1,519,728) 70.14
Expired and forfeited (50,180) 106.62 (143,801) 90.92 (15,771) 96.54
Outstanding-end of year
5,825,957 $ 99.74 5,940,320 $ 96.19 6,962,374 $ 91.73
Exercisable at end of year
4,376,436 $ 93.73 4,003,028 $ 91.23 3,666,871 $ 84.00
Additional information about Globe Life's stock option activity as of December 31, 2024 and 2023 is as follows:
2024 2023
Outstanding options:
Weighted-average remaining contractual term (in years) 3.15 3.68
Aggregate intrinsic value $ 81,703 $ 151,685
Exercisable options:
Weighted-average remaining contractual term (in years) 2.48 3.01
Aggregate intrinsic value $ 77,946 $ 122,052
Selected stock option activity for the three years ended December 31, 2024, is presented below:
2024 2023 2022
Weighted-average grant-date fair value of options granted
(per share) $ 33.80 $ 32.25 $ 22.03
Intrinsic value of options exercised 17,127 49,163 58,201
Cash received from options exercised 51,786 114,080 106,592
Actual tax benefit received 2,489 9,379 11,907
Additional information concerning Globe Life's unvested options is as follows at December 31:
2024 2023
Number of shares outstanding 1,449,521 1,937,292
Weighted-average exercise price (per share) $ 117.88 $ 106.42
Weighted-average remaining contractual term (in years) 5.19 5.05
Aggregate intrinsic value $ 3,757 $ 29,634
Globe Life expects that substantially all unvested options will vest.
Restricted Stock: Restricted stock grants consist of time-vested grants, restricted stock units, and performance shares. Time-vested restricted stock is available to directors and vests over six months. The directors' restricted stock units vest over six months and are converted to shares upon their retirement from the Board. Employees' restricted stock units vest and become non-forfeitable on the vesting date (generally three years from the grant date) or upon meeting certain retirement criteria, or in the event of death or disability. Director restricted stock and restricted stock units are generally granted on the first business day of the calendar year. Performance shares are
GL 2024 FORM 10-K
Globe Life Inc.
Notes to Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
granted to a limited number of senior executives. Performance shares have a three-year performance period and are not settled in shares until the certification of the three-year performance period. While the grant specifies a stated target number of shares, the determination of the actual settlement in shares will be based on the achievement of certain performance objectives of Globe Life over the three-year performance period. Certain executive restricted stock and performance share grants contain terms related to age that could accelerate vesting.
Following are the restricted stock units outstanding for each of the three years ended December 31, 2024:
Year of grants Outstanding as of year end
2022 93,381
2023 163,108
2024 219,864
Below is the final determination of the performance share grants in 2020 to 2022:
Year of grants Final settlement of shares Final settlement date
2020 84,298 February 22, 2023
2021 143,211 February 28, 2024
2022 152,680 February 26, 2025
For the 2023 and 2024 performance share grants, actual shares that could be distributed range from 0 to 122 thousand for the 2023 grants and 0 to 145 thousand shares for the 2024 grants.
A summary of restricted stock grants for each of the years in the three-year period ended December 31, 2024, is presented in the table below:
2024 2023 2022
Directors restricted stock:
Shares 7,375 7,110 10,746
Price per share $ 122.06 $ 119.59 $ 94.94
Aggregate value $ 900 $ 850 $ 1,020
Percent vested 100 % 100 % 100 %
Directors restricted stock units (including dividend equivalents):
Shares 4,854 9,479 8,956
Price per share $ 120.16 $ 117.73 $ 95.62
Aggregate value $ 583 $ 1,116 $ 856
Percent vested 100 % 100 % 100 %
Employees restricted stock units:
Shares 101,011 96,975 -
Price per share $ 127.29 $ 120.18 $ -
Aggregate value $ 12,858 $ 11,654 $ -
Percent vested - % - % - %
Performance shares:
Target shares 96,800 81,300 146,500
Target price per share $ 128.40 $ 120.49 $ 103.23
Aggregate value $ 12,429 $ 9,796 $ 15,123
Percent vested - % - % - %
GL 2024 FORM 10-K
Globe Life Inc.
Notes to Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
Time-vested restricted stockholders are entitled to dividend payments on the unvested stock. Director restricted stock unit holders are entitled to dividend equivalents. These equivalents are granted in the form of additional restricted stock units and vest immediately upon grant. Dividend equivalents are applicable only to directors' restricted stock units. Performance shares held by employees are not entitled to dividend equivalents and are not entitled to dividend payments until the shares are vested and settled.
An analysis of nonvested restricted stock is as follows:
Executive
Performance
Shares Directors
Restricted
Stock Directors
Restricted
Stock
Units Employees
Restricted
Stock
Units
Total
2022:
Balance at December 31, 2021 342,388 289 289 - 342,966
Grants 146,500 10,746 8,956 - 166,202
Additional performance shares(1)
(16,102) - - - (16,102)
Restriction lapses (66,751) (11,035) (9,245) - (87,031)
Forfeitures (7,500) - - - (7,500)
Balance at December 31, 2022 398,535 - - - 398,535
2023:
Grants 81,300 7,110 9,479 96,975 194,864
Additional performance shares(1)
(28,857) - - - (28,857)
Restriction lapses (84,298) (7,110) (9,479) - (100,887)
Forfeitures (12,600) - - (4,410) (17,010)
Balance at December 31, 2023 354,080 - - 92,565 446,645
2024:
Grants 96,800 7,375 4,854 101,011 210,040
Additional performance shares(1)
84,712 - - - 84,712
Restriction lapses (143,211) (7,375) (4,854) (437) (155,877)
Forfeitures (6,000) - - (10,008) (16,008)
Balance at December 31, 2024 386,381 - - 183,131 569,512
(1)Estimated additional (reduced) share grants expected due to achievement of performance criteria.
An analysis of the weighted-average grant-date fair values per share of nonvested restricted stock is as follows for the year 2024:
Executive Performance Shares Directors Restricted Stock Directors Restricted Stock Units Employees
Restricted
Stock
Units
Grant-date fair value per share at January 1, 2024
$ 105.28 $ - $ - $ 120.16
Grants 128.40 122.06 122.06 127.29
Estimated additional performance shares 107.56 - - -
Restriction lapses (98.32) (122.06) (122.06) (94.40)
Forfeitures - - - (122.74)
Grant-date fair value per share at December 31, 2024
115.78 - - 124.02
GL 2024 FORM 10-K
Globe Life Inc.
Notes to Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
Note 15-Business Segments
Globe Life is organized into three operating segments: life, health, and investments.
Globe Life's reportable insurance segments are based on the insurance product lines it markets and administers: life insurance and supplemental health insurance. There is also an investment segment that manages the investment portfolio and cash flow for the insurance segments. The Company's chief operating decision makers ("CODM"), our Co-CEOs, evaluate the overall performance of the operations of the Company in accordance with these segments.
During the fourth quarter of 2024 we entered into a coinsurance agreement to cede a majority of the annuity business to a third-party insurer. This impacted a significant portion of our annuities which had previously been classified as one of our reportable segments. The annuity segment has historically represented less than 1% of revenue and has not been core to the Company's business. We have adjusted our segments from four down to three as described above. All presentations of segment information have been recast for the periods presented to reflect this change in segments.
Life insurance products marketed by Globe Life include traditional whole life and term life insurance. Health insurance products are generally guaranteed renewable and include Medicare Supplement, cancer, critical illness, accident, and other limited-benefit supplemental hospital and surgical products.
The following tables present segment premium revenue by each of Globe Life's distribution channels.
Premium Income by Distribution Channel
For the Year 2024
Life Health Total
Distribution Channel Amount % of
Total Amount % of
Total Amount % of
Total
American Income $ 1,698,209 52 $ 123,123 9 $ 1,821,332 39
Direct to Consumer 988,522 30 71,993 5 1,060,515 23
Liberty National 371,061 12 190,381 14 561,442 12
United American 6,600 - 591,774 42 598,374 13
Family Heritage 6,661 - 427,654 30 434,315 9
Other 190,294 6 - - 190,294 4
Total premium
$ 3,261,347 100 $ 1,404,925 100 $ 4,666,272 100
For the Year 2023
Life Health Total
Distribution Channel Amount % of
Total
Amount % of
Total
Amount % of
Total
American Income $ 1,588,702 51 $ 120,332 9 $ 1,709,034 38
Direct to Consumer 991,406 32 68,575 5 1,059,981 24
Liberty National 349,736 11 187,934 14 537,670 12
United American 7,311 - 545,723 42 553,034 13
Family Heritage 6,134 - 396,209 30 402,343 9
Other 193,955 6 - - 193,955 4
Total premium
$ 3,137,244 100 $ 1,318,773 100 $ 4,456,017 100
GL 2024 FORM 10-K
Globe Life Inc.
Notes to Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
For the Year 2022
Life Health Total
Distribution Channel Amount % of
Total
Amount % of
Total
Amount % of
Total
American Income $ 1,505,034 50 $ 117,353 9 $ 1,622,387 38
Direct to Consumer 985,488 33 71,129 5 1,056,617 24
Liberty National 327,469 11 187,241 15 514,710 12
United American 7,966 - 539,874 42 547,840 13
Family Heritage 5,586 - 366,820 29 372,406 9
Other 196,281 6 - - 196,281 4
$ 3,027,824 100 $ 1,282,417 100 4,310,241 100
Annuity
1 -
Total premium
$ 4,310,242 100
Due to the nature of the life and health insurance industry, Globe Life has no individual or group which would be considered a major customer. Substantially all of Globe Life's business is conducted in the United States.
The measure of profitability established by the chief operating decision makers for the insurance segments is underwriting margin in accordance with the manner in which the segments are managed. It essentially represents gross profit margin on insurance products before insurance administrative expenses and consists primarily of premium less net policy benefits, acquisition expenses, and commissions. The CODMs use the Life and Health segment profit or loss in monitoring the insurance specific business and to analyze performance measures that inform decisions around product pricing and appropriate support services such as agency force and training. Required interest on policy liabilities is reflected as a component of the Investment segment (rather than as a component of underwriting margin in the insurance segment) in order to match this cost with the investment income earned on the assets supporting the policy liabilities.
The measure of profitability for the Investment segment is excess investment income, representing the income earned on the investment portfolio in excess of policy requirements. Excess investment income is used to analyze the performance of our investments in relation to our policy required obligations and informs and supports management actions regarding investment related decisions and policy benefits within our product features. Other than the required interest on the insurance segments, no other intersegment revenues or expenses are recognized.
Globe Life holds a sizable investment portfolio to support its insurance liabilities, the yield from which is used to offset policy benefit, acquisition, administrative, and tax expenses. This yield or investment income is taken into account when establishing premium rates and profitability expectations for its insurance products. From time to time, investments are sold or called, or experience a credit loss event, each of which are reflected by the Company as realized gain (loss)-investments. These gains or losses generally occur as a result of disposition due to issuer calls, compliance with Company investment policies, or other reasons often beyond management’s control. Unlike investment income, realized gains and losses are incidental to insurance operations, and only overall yields are considered when setting premium rates or insurance product profitability expectations. While these gains and losses are not relevant to segment profitability or core operating results, they can have a material positive or negative result on net income. For these reasons, management removes realized investment gains and losses when it views its segment operations.
Management also removes non-operating items unrelated to the Company's core insurance activities when evaluating those results. All other unallocated revenues and expenses, including expenses directly attributable to corporate operations, insurance administrative expense and interest on debt, are disclosed after segment profit or loss within the reconciliation to Income before taxes. Stock-based compensation expense is considered a corporate expense by Globe Life management. Therefore, these items are excluded in its presentation of segment results because accounting guidance requires that operating segment results be presented as management views its
GL 2024 FORM 10-K
Globe Life Inc.
Notes to Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
business. All of these items are included in “Other operating expense” in the Consolidated Statements of Operations for the appropriate year. See additional detail below in the tables.
The following tables set forth a reconciliation of Globe Life's revenues and operations by segment to its major income statement line items. See Note 1-Significant Accounting Policies for additional information concerning reconciling items of segment profits to pretax income.
Year Ended December 31, 2024
Life Health Investment Consolidated
Revenue:
Premium $ 3,261,347 $ 1,404,925 $ - $ 4,666,272
Net investment income - - 1,135,631 1,135,631
Segment revenue 3,261,347 1,404,925 1,135,631 5,801,903
Other income 354
Realized gains (losses) (24,188)
Total consolidated revenue
$ 5,778,069
Expenses:
Policy obligations(1)
2,000,977 851,577 20,969 $ 2,873,523
Required interest on reserves (811,147) (110,342) 950,258 28,769
Amortization of acquisition costs 356,223 52,224 - 408,447
Commissions 159,703 158,869 - 318,572
Premium taxes 68,360 28,421 - 96,781
Non-deferred acquisition costs 134,634 51,753 - 186,387
Segment profit or (loss)
$ 1,352,597 $ 372,423 $ 164,404 1,889,424
Insurance administrative expenses:
Salaries 129,369
Other employee costs 36,176
Information technology costs 80,555
Legal costs 30,478
Other administrative costs 65,852
Parent expense 12,400
Stock-based compensation expense 40,118
Interest expense 127,092
Legal proceedings 21,575
Non-operating expenses 2,620
Annuity (7,282)
Total expenses 4,451,432
.
Income before income taxes per Consolidated Statement of Operations
$ 1,326,637
(1)Policy obligations are based upon policyholder behavior and impacts related to lapses, mortality, and morbidity. For detailed information, including remeasurement gains and losses, see Note 6-Policy Liabilities.
GL 2024 FORM 10-K
Globe Life Inc.
Notes to Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
Year Ended December 31, 2023
Life Health Investment Consolidated
Revenue:
Premium $ 3,137,244 $ 1,318,773 $ - $ 4,456,017
Net investment income - - 1,056,884 1,056,884
Segment revenue 3,137,244 1,318,773 1,056,884 5,512,901
Other income 308
Realized gains (losses)
(65,676)
Total consolidated revenue $ 5,447,533
Expenses:
Policy obligations(1)
2,050,789 776,362 9,061 $ 2,836,212
Required interest on reserves (772,701) (106,516) 917,441 38,224
Amortization of acquisition costs 327,426 50,598 - 378,024
Commissions 145,678 150,192 - 295,870
Premium taxes 64,571 26,440 - 91,011
Non-deferred acquisition costs 128,509 43,760 - 172,269
Segment profit or (loss)
$ 1,192,972 $ 377,937 $ 130,382 1,701,291
Insurance administrative expenses:
Salaries 119,699
Other employee costs 35,905
Information technology costs 64,998
Legal costs 15,335
Other administrative costs 65,224
Parent expense 10,866
Stock-based compensation expense 30,736
Interest expense 102,316
Legal proceedings 900
Non-operating expenses 4,170
Annuity
(8,492)
Total expenses 4,253,267
Income before income taxes per Consolidated Statement of Operations
$ 1,194,266
(1)Policy obligations are based upon policyholder behavior and impacts related to lapses, mortality, and morbidity. For detailed information, including remeasurement gains and losses, see Note 6-Policy Liabilities.
GL 2024 FORM 10-K
Globe Life Inc.
Notes to Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
Year Ended December 31, 2022
Life Health Investment Consolidated
Revenue:
Premium $ 3,027,824 $ 1,282,417 $ - $ 4,310,241
Net investment income - - 991,800 991,800
Segment revenue 3,027,824 1,282,417 991,800 5,302,041
Annuity premium income
Other income 1,246
Realized gains (losses)
(76,548)
Total consolidated revenue $ 5,226,740
Expenses:
Policy obligations(1)
2,035,693 752,866 4,372 $ 2,792,931
Required interest on reserves (735,688) (102,315) 882,839 44,836
Amortization of acquisition costs 298,841 48,185 - 347,026
Commissions 140,283 145,185 - 285,468
Premium taxes 61,609 24,653 - 86,262
Non-deferred acquisition costs 97,561 36,706 - 134,267
Segment profit or (loss)
$ 1,129,525 $ 377,137 $ 104,589 1,611,251
Insurance administrative expenses:
Salaries 129,711
Other employee costs 42,319
Information technology costs 55,526
Legal costs 12,056
Other administrative costs 59,729
Parent expense 11,156
Stock-based compensation expense 35,650
Interest expense 90,395
Legal proceedings 2,496
Non-operating expenses 5,311
Annuity
(10,510)
Total expenses 4,124,629
Income before income taxes per Consolidated Statement of Operations
$ 1,102,111
(1)Policy obligations are based upon policyholder behavior and impacts related to lapses, mortality, and morbidity. For detailed information, including remeasurement gains and losses, see Note 6-Policy Liabilities.
GL 2024 FORM 10-K
Globe Life Inc.
Notes to Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
Assets for each segment are reported based on a specific identification basis. The insurance segments’ assets contain DAC. The investment segment includes the investment portfolio, cash, and accrued investment income. Goodwill is assigned to the insurance segments at the time of purchase. All other assets are included in the annuity and other corporate category. The tables below reconcile segment assets to total assets as reported on the Consolidated Balance Sheets.
Assets by Segment
At December 31, 2024
Life Health Investment Consolidated
Cash and invested assets $ - $ - $ 19,736,888 $ 19,736,888
Accrued investment income - - 269,791 269,791
Deferred acquisition costs 5,700,755 793,421 - 6,494,176
Goodwill 309,609 180,837 - 490,446
Total segment assets
$ 6,010,364 $ 974,258 $ 20,006,679 26,991,301
Annuity and other corporate
2,084,880
Total assets
$ 29,076,181
At December 31, 2023
Life Health Investment Consolidated
Cash and invested assets $ - $ - $ 19,827,199 $ 19,827,199
Accrued investment income - - 270,396 270,396
Deferred acquisition costs 5,271,775 734,735 - 6,006,510
Goodwill 309,609 172,182 - 481,791
Total segment assets
$ 5,581,384 $ 906,917 $ 20,097,595 26,585,896
Annuity and other corporate
1,465,603
Total assets
$ 28,051,499
GL 2024 FORM 10-K
Globe Life Inc.
Notes to Consolidated Financial Statements
(Dollar amounts in thousands, except per share data)
Liabilities for each segment are reported also on a specific identification basis similar to the assets. The insurance segments' liabilities contain future policy benefits, unearned and advance premiums, and policy claims and other benefits payable. Other policyholders' funds and annuities are included in annuity and other corporate as well as current and deferred income taxes payable. Debt represents both short and long-term. The tables below reconcile segment liabilities to total liabilities as reported on the Consolidated Balance Sheets.
Liabilities by Segment
At December 31, 2024
Life Health Investment Consolidated
Future policy benefits $ 15,484,596 $ 2,316,094 $ - $ 17,800,690
Unearned and advance premiums 198,127 59,504 - 257,631
Policy claims and other benefits payable 321,838 210,994 - 532,832
Debt - - 2,739,652 2,739,652
Other 96,604 - 372,000 468,604
Total segment liabilities
$ 16,101,165 $ 2,586,592 $ 3,111,652 21,799,409
Annuity and other corporate
1,971,252
Total liabilities
$ 23,770,661
At December 31, 2023
Life Health Investment Consolidated
Future policy benefits $ 16,304,797 $ 2,382,517 $ - $ 18,687,314
Unearned and advance premiums 196,630 57,937 - 254,567
Policy claims and other benefits payable 320,066 194,809 - 514,875
Debt - - 2,115,672 2,115,672
Other 98,958 - 138,000 236,958
Total segment liabilities
$ 16,920,451 $ 2,635,263 $ 2,253,672 21,809,386
Annuity and other corporate
1,755,310
Total liabilities
$ 23,564,696
Note 16-Subsequent Events
On February 3, 2025, Globe Life Inc. announced plans to relocate its corporate headquarters within McKinney, Texas, as part of the Dallas-Fort Worth market. In connection with this relocation, the Company has entered into an agreement to acquire the office building and two adjacent tracts of developable land for $80 million.
The Company has evaluated this subsequent event and determined that it does not require adjustments to the financial statements for the period ended December 31, 2024.
GL 2024 FORM 10-K

---

ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS
ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURES
None.

---

ITEM 9A. CONTROLS AND PROCEDURES
Item 9A. Controls and Procedures
Evaluation of Disclosure Controls and Procedures: Globe Life Inc., under the direction of the Co-Chairmen and Chief Executive Officers and the Executive Vice President and Chief Financial Officer, has established disclosure controls and procedures that are designed to ensure that information required to be disclosed by Globe Life in the reports that it files or submits under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms. The disclosure controls and procedures are also intended to ensure that such information is accumulated and communicated to Globe Life's management, including the Co-Chairmen and Chief Executive Officers and the Executive Vice President and Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosures.
As of the end of the fiscal year completed December 31, 2024, an evaluation was performed under the supervision and with the participation of Globe Life management, including the Co-Chairmen and Chief Executive Officers and the Executive Vice President and Chief Financial Officer, of the disclosure controls and procedures (as those terms are defined in Rule 13a-15(e) under the Securities Exchange Act of 1934). Based upon their evaluation, the Co-Chairmen and Chief Executive Officers and the Executive Vice President and Chief Financial Officer have concluded that disclosure controls and procedures are effective as of the date of this Form 10-K. In compliance with Section 302 of the Sarbanes Oxley Act of 2002 (18 U.S.C. § 1350), each of these officers executed a Certification included as an exhibit to this Form 10-K.
Management's Annual Report on Internal Control over Financial Reporting: Management is responsible for establishing and maintaining adequate internal control over financial reporting as defined in Rule 13a-15(f) under the Securities Exchange Act of 1934. Management evaluated the design and operating effectiveness of the Company's internal control over financial reporting based on the criteria established in Internal Control-Integrated Framework (2013) issued by the Committee of Sponsoring Organizations (COSO) of the Treadway Commission. Based upon their evaluation as of December 31, 2024, the Co-Chairmen and Chief Executive Officers and the Executive Vice President and Chief Financial Officer have concluded that Globe Life's internal control over financial reporting is effective as of the date of this Form 10-K. In compliance with Section 302 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. § 1350), each of these officers executed a Certification included as an exhibit to this Form 10-K.
Changes in Internal Control over Financial Reporting: During the period ended December 31, 2024, there were no changes to Globe Life Inc.'s internal control over financial reporting or in other factors that could significantly affect the internal control over financial reporting subsequent to the date of their evaluation which have materially affected, or are reasonably likely to materially affect, internal control over financial reporting.
Refer to Deloitte & Touche LLP's, independent registered public accounting firm, attestation report on the Company's internal controls over financial reporting.
GL 2024 FORM 10-K
MANAGEMENT'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING
Management at Globe Life is responsible for establishing and maintaining adequate internal control over financial reporting for the Company and for assessing the effectiveness of internal control on an annual basis. As a framework for assessing internal control over financial reporting, the Company utilizes the criteria for effective internal control over financial reporting described in Internal Control-Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission.
There are inherent limitations in the effectiveness of any internal control, including the possibility of human error and the circumvention or overriding of controls. Accordingly, even effective internal controls can provide only reasonable assurance with respect to financial statement preparation. Further, because of changes in conditions, the effectiveness of internal control may vary over time.
Management evaluated the Company’s internal control over financial reporting, and based on its assessment, determined that the Company’s internal control over financial reporting was effective as of December 31, 2024. The Company’s independent registered public accounting firm has issued an attestation report on the Company’s internal control over financial reporting as stated in their report which is included herein.
/s/ J. Matthew Darden
J. Matthew Darden
Co-Chairman and Chief Executive Officer
/s/ Frank M. Svoboda
Frank M. Svoboda
Co-Chairman and Chief Executive Officer
/s/ Thomas P. Kalmbach
Thomas P. Kalmbach
Executive Vice President and Chief Financial Officer
February 26, 2025
GL 2024 FORM 10-K
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Shareholders and the Board of Directors of Globe Life Inc.
Opinion on Internal Control over Financial Reporting
We have audited the internal control over financial reporting of Globe Life Inc. and subsidiaries (the “Company”) as of December 31, 2024, based on criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). In our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2024, based on criteria established in Internal Control - Integrated Framework (2013) issued by COSO.
We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated financial statements and financial statement schedules as of and for the year ended December 31, 2024 of the Company and our report dated February 26, 2025, expressed an unqualified opinion on those financial statements and financial statement schedules.
Basis for Opinion
The Company’s management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying Management's Report on Internal Control over Financial Reporting. Our responsibility is to express an opinion on the Company’s internal control over financial reporting based on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, testing and evaluating the design and operating effectiveness of internal control based on the assessed risk, and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.
Definition and Limitations of Internal Control over Financial Reporting
A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.
Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
/s/ Deloitte & Touche LLP
Dallas, Texas
February 26, 2025
GL 2024 FORM 10-K

---

ITEM 9B. OTHER INFORMATION
Item 9B. Other Information
(b) Trading arrangements
During the three months ended December 31, 2024, none of our directors or officers adopted or terminated a Rule 10b5-1 trading arrangement or a Non-Rule 10b5-1 trading arrangement, as each term is defined under Item 408(a) of Regulation S-K.

---

ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE
ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE
The information required by this Item is incorporated herein by reference to the information that will be contained in our proxy statement related to the 2025 Annual Meeting of Stockholders, which we intend to file with the Securities and Exchange Commission within 120 days of the end of our fiscal year pursuant to General Instruction G(3) of Form 10-K.

---

ITEM 11. EXECUTIVE COMPENSATION
ITEM 11. EXECUTIVE COMPENSATION
The information required by this Item is incorporated herein by reference to the information that will be contained in our proxy statement related to the 2025 Annual Meeting of Stockholders, which we intend to file with the Securities and Exchange Commission within 120 days of the end of our fiscal year pursuant to General Instruction G(3) of Form 10-K.

---

ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS
ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS
1. Equity Compensation Plan Information as of December 31, 2024
(a) (b) (c)
Plan Category Number of securities to be issued upon exercise of outstanding options, warrants, and rights Weighted-average exercise price of outstanding options, warrants, and rights Number of securities remaining available for future issuance under equity compensation plans (excluding securities in column (a))
Equity compensation plans approved by security holders 5,825,957 $ 99.74 4,286,654
Equity compensation plans not approved by security holders - - -
Total 5,825,957 $ 99.74 4,286,654
2. Security ownership of certain beneficial owners:
The information required by this Item is incorporated herein by reference to the information that will be contained in our proxy statement related to the 2025 Annual Meeting of Stockholders, which we intend to file with the Securities and Exchange Commission within 120 days of the end of our fiscal year pursuant to General Instruction G(3) of Form 10-K.
3. Security ownership of management:
The information required by this Item is incorporated herein by reference to the information that will be contained in our proxy statement related to the 2025 Annual Meeting of Stockholders, which we intend to file with the Securities and Exchange Commission within 120 days of the end of our fiscal year pursuant to General Instruction G(3) of Form 10-K.
GL 2024 FORM 10-K
4. Changes in control:
Globe Life knows of no arrangements, including any pledges by any person of its securities, the operation of which may at a subsequent date result in a change of control.

---

ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS
ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS AND DIRECTOR INDEPENDENCE
The information required by this Item is incorporated herein by reference to the information that will be contained in our proxy statement related to the 2025 Annual Meeting of Stockholders, which we intend to file with the Securities and Exchange Commission within 120 days of the end of our fiscal year pursuant to General Instruction G(3) of Form 10-K.

---

ITEM 14. PRINCIPAL ACCOUNTING FEES AND SERVICES
ITEM 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES
The information required by this Item is incorporated herein by reference to the information that will be contained in our proxy statement related to the 2025 Annual Meeting of Stockholders, which we intend to file with the Securities and Exchange Commission within 120 days of the end of our fiscal year pursuant to General Instruction G(3) of Form 10-K.
PART IV

---

ITEM 15. EXHIBITS, FINANCIAL STATEMENT SCHEDULES
ITEM 15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES
Index of documents filed as a part of this report:
Page of this report
Financial Statements:
Globe Life Inc. and Subsidiaries:
Report of Independent Registered Public Accounting Firm
Consolidated Balance Sheets at December 31, 2024 and 2023
Consolidated Statements of Operations for each of the three years in the period ended December 31, 2024
Consolidated Statements of Comprehensive Income for each of the three years in the period ended December 31, 2024
Consolidated Statements of Shareholders’ Equity for each of the three years in the period ended December 31, 2024
Consolidated Statements of Cash Flows for each of the three years in the period ended December 31, 2024
Notes to Consolidated Financial Statements
Schedules Supporting Financial Statements for each of the three years in the period ended December 31, 2024:
II. Condensed Financial Information of Registrant (Parent Company)
IV. Reinsurance (Consolidated)
Schedules not referred to have been omitted as inapplicable or not required by Regulation S-X.
GL 2024 FORM 10-K
EXHIBITS
Exhibit No. Description Form Filing Date
3.1 Restated Certificate of Incorporation of Globe Life Inc.
8-K August 8, 2019
3.2 Certificate of Amendment of Certificate of Incorporation of Globe Life Inc.
8-K
May 2, 2023
3.3 Amended and Restated By-Laws of Globe Life Inc., as amended August 10, 2023
8-K August 15, 2023
4.1 Junior Subordinated Indenture, dated November 2, 2001, between Torchmark Corporation and The Bank of New York defining the rights of the 7 3/4% Junior Subordinated Debentures
8-K November 2, 2001
4.2 Third Supplemental Indenture dated as of November 17, 2017 between Torchmark Corporation and Regions Bank, as Trustee, supplementing the Junior Subordinated Indenture dated as of November 2, 2001
8-K November 17, 2017
4.3 Fourth Supplemental Indenture dated as of June 14, 2021 between Globe Life Inc. and Regions Bank, as Trustee, supplementing the Junior Subordinated Indenture dated as of November 2, 2001
8-K June 14, 2021
4.4 Senior Indenture, dated as of September 24, 2018, between Torchmark Corporation and Regions Bank, as Trustee
S-3 September 24, 2018
4.5 First Supplemental Indenture, dated as of September 27, 2018, between Torchmark Corporation and Regions Bank, as Trustee
8-K September 27, 2018
4.6 Second Supplemental Indenture, dated as of August 21, 2020, between Globe Life Inc. and Regions Bank, as Trustee
8-K August 21, 2020
4.7 Third Supplemental Indenture, dated as of May 19, 2022, between Globe Life Inc. and Regions Bank, as Trustee
8-K May 19, 2022
4.8 Fourth Supplemental Indenture, dated as of August 23, 2024, between Globe Life Inc. and Regions Bank, as Trustee
8-K
August 26, 2024
10.1 Form of Retirement Life Insurance Benefit Agreement ($495,000 face amount limit)*
10-K March 22, 2002
10.2 Amended and Restated Supplemental Executive Retirement Plan*
10-K
February 26, 2025
10.3 Receivables Purchase Agreement dated as of December 31, 2008 among AILIC Receivables Corporation, American Income Life Insurance Company and TMK Re, Ltd.
8-K January 6, 2009
10.4 Amendment No.1 to Receivables Purchase Agreement dated as of December 31, 2008 among AILIC Receivables Corporation, American Income Life Insurance Company, and TMK Re, Ltd.
10-K February 28, 2014
10.5 Amendment No.2 to Receivables Purchase Agreement dated as of December 31, 2008 among AILIC Receivables Corporation, American Income Life Insurance Company, and TMK Re, Ltd.
10-K March 1, 2019
10.6 Torchmark Corporation 2011 Incentive Plan*
8-K May 4, 2011
10.7 First Amendment to Torchmark Corporation 2011 Incentive Plan*
8-K April 29, 2014
10.8 Torchmark Corporation Amended 2011 Non-Employee Director Compensation Plan, effective January, 2017*
10-K February 27, 2017
10.9 Form of Restricted Stock Unit Award Notice under Torchmark Corporation 2011 Non-Employee Director Compensation Plan*
10-K February 28, 2011
10.1 Torchmark Corporation 2018 Incentive Plan*
8-K May 2, 2018
10.11 First Amendment to Torchmark Corporation 2018 Incentive Plan*
10-K February 27, 2020
10.12 Second Amendment to Globe Life Inc. 2018 Incentive Plan*
10-Q
May 9, 2023
GL 2024 FORM 10-K
Exhibit No. Description Form Filing Date
10.13 Second Amended and Restated Globe Life Inc. 2018 Non-Employee Director Compensation Plan*
10-K
February 28, 2024
10.14 Form of Seven Year Stock Option under Globe Life Inc. 2018 Incentive Plan*
10-K February 27, 2020
10.15 Form of Seven Year Stock Option under Torchmark Corporation 2018 Incentive Plan with Non-Compete, Non-Solicit and Confidentiality Provisions*
8-K May 2, 2018
10.16 Form of Seven Year Stock Option under Globe Life Inc. 2018 Incentive Plan with Non-Compete, Non-Solicit and Confidentiality Provisions*
10-K February 27, 2020
10.17 Form of Ten Year Stock Option under Torchmark Corporation 2018 Incentive Plan*
8-K May 2, 2018
10.18 Form of Ten Year Stock Option under Torchmark Corporation 2018 Incentive Plan with Non-Compete, Non-Solicit and Confidentiality Provisions*
8-K May 2, 2018
10.19 Form of Stock Option under Globe Life Inc. 2018 Non-Employee Director Compensation Plan*
10-K February 27, 2020
10.20 Form of Restricted Stock Unit Award Notice under Globe Life Inc. 2018 Non-Employee Director Compensation Plan*
10-K February 27, 2020
10.21 Globe Life Inc. Management Incentive Plan (Effective as of January 1, 2024)*
8-K
November 9, 2023
10.22 Amended and Restated Credit Agreement dated as of September 30, 2021 among Bank of America, N.A., the Lenders party thereto, Globe Life Inc. and TMK RE, LTD.
8-K October 1, 2021
10.23 First Amendment to Amended and Restated Credit Agreement dated January 10, 2023 among Bank of America, N.A., the Lenders party thereto, Globe Life Inc. and TMK RE, LTD.
10-K February 23, 2023
10.24 Second Amended and Restated Credit Agreement dated as of March 29, 2024 among Bank of America, N.A., the Lenders party thereto, Globe Life Inc. and TMK RE, LTD
8-K
April 2, 2024
10.25 Delayed Draw Term Loan Agreement dated as of April 14, 2023 among Bank of America, N.A., as Administrative Agent, the Lenders party thereto, and Globe Life Inc.
8-K
April 18, 2023
10.26 First Amendment to Delayed Draw Term Loan Agreement dated as of August 15, 2024 among Bank of America, N.A., as Administrative Agent, the Lenders party thereto, and Globe Life Inc.
8-K
August 15, 2024
10.27 Form of Performance Share Award Certificate under Globe Life Inc. 2018 Incentive Plan (2023)*
10-K February 23, 2023
10.28 Form of Seven Year Stock Option under Globe Life Inc. 2018 Incentive Plan (2023)*
10-K February 23, 2023
10.29 Form of Seven Year Stock Option under Globe Life Inc. 2018 Incentive Plan with Non-Compete, Non-Solicit and Confidentiality Provisions (2023)*
10-K February 23, 2023
10.30 Form of Restricted Stock Unit Award Certificate under Globe Life Inc. 2018 Incentive Plan*
10-K February 23, 2023
10.31 Form of Restricted Stock Unit Award Certificate under Globe Life Inc. 2018 Incentive Plan with Non-Compete, Non-Solicit and Confidentiality Provisions*
10-K February 23, 2023
10.32 Form of Seven Year Stock Option under Globe Life Inc. 2018 Incentive Plan (2024)*
10-K
February 28, 2024
10.33 Form of Seven Year Stock Option under Globe Life Inc. 2018 Incentive Plan with Non-Compete, Non-Solicit and Confidentiality Provisions (2024)*
10-K
February 28, 2024
10.34 Form of Restricted Stock Unit Award Certificate under Globe Life Inc. 2018 Incentive Plan (2024)*
10-K
February 28, 2024
GL 2024 FORM 10-K
Exhibit No. Description Form Filing Date
10.35 Form of Restricted Stock Unit Award Certificate under Globe Life Inc. 2018 Incentive Plan with Non-Compete, Non-Solicit and Confidentiality Provisions (2024)*
10-K
February 28, 2024
10.36 Form of Performance Share Award Certificate under Globe Life Inc. 2018 Incentive Plan (2024)*
10-K
February 28, 2024
10.37 Form of Seven Year Stock Option under Globe Life Inc. 2018 Incentive Plan (November 2024)*
8-K
November 19, 2024
10.38 Form of Seven Year Stock Option under Globe Life Inc. 2018 Incentive Plan with Non-Compete, Non-Solicit and Confidentiality Provisions (November 2024)*
8-K
November 19, 2024
10.39 Form of Seven Year Stock Option under Globe Life Inc. 2018 Incentive Plan with Non-Compete, Non-Solicit and Confidentiality Provisions (Special) (November 2024)*
8-K
November 19, 2024
10.40 Form of Restricted Stock Unit Award Agreement under Globe Life Inc. 2018 Incentive Plan (November 2024)*
8-K
November 19, 2024
10.41 Form of Restricted Stock Unit Award Agreement under Globe Life Inc. 2018 Incentive Plan with Non-Compete, Non-Solicit and Confidentiality Provisions (November 2024)*
8-K
November 19, 2024
10.42 Form of Performance Share Award Certificate under Globe Life Inc. 2018 Incentive Plan (2025)*
10-K
February 26, 2025
10.43 Globe Life Inc. Executive Severance Plan*
8-K
November 19, 2024
19 Globe Life Inc. Insider Trading Policy
10-K
February 26, 2025
21 Subsidiaries of the Registrant
10-K February 26, 2025
23 Consent of Deloitte & Touche LLP
10-K February 26, 2025
24 Powers of Attorney
10-K February 26, 2025
31.1 Rule 13a-14(a)/15d-14(a) Certification by J. Matthew Darden
10-K February 26, 2025
31.2 Rule 13a-14(a)/15d-14(a) Certification by Frank M. Svoboda
10-K February 26, 2025
31.3 Rule 13a-14(a)/15d-14(a) Certification by Thomas P. Kalmbach
10-K February 26, 2025
32.1 Section 1350 Certification by J. Matthew Darden, Frank M. Svoboda, and Thomas P. Kalmbach
10-K February 26, 2025
97 Globe Life Inc. Clawback Policy
10-K
February 26, 2024
101.INS XBRL Instance Document- the instance document does not appear in the Interactive Data file because the XBRL tags are embedded within the Inline XBRL document. 10-K February 26, 2025
101.SCH Inline XBRL Taxonomy Extension Schema Document. 10-K February 26, 2025
101.CAL Inline XBRL Taxonomy Extension Calculation Linkbase Document. 10-K February 26, 2025
101.LAB Inline XBRL Taxonomy Extension Label Linkbase Document. 10-K February 26, 2025
101.PRE Inline XBRL Taxonomy Extension Presentation Linkbase Document. 10-K February 26, 2025
101.DEF Inline XBRL Taxonomy Extension Definition Linkbase Document. 10-K February 26, 2025
104 Cover Page Interactive Data File (formatted as inline XBRL with applicable taxonomy extension information contained in Exhibits 101). 10-K February 26, 2025
* Compensatory plan or arrangement.
GL 2024 FORM 10-K
Globe Life Inc.
(PARENT COMPANY)
SCHEDULE II. CONDENSED FINANCIAL INFORMATION OF REGISTRANT
Condensed Balance Sheets
(Dollar amounts in thousands)
December 31,
2024 2023
Assets:
Investments:
Long-term investments $ 39,404 $ 42,360
Short-term investments 29,005 1,005
Total investments 68,409 43,365
Cash 66,770 1,003
Investment in affiliates 7,740,073 6,539,183
Due from affiliates 278,301 105,279
Taxes receivable from affiliates 15,202 14,163
Other assets 193,363 181,443
Total assets $ 8,362,118 $ 6,884,436
Liabilities:
Short-term debt $ 415,401 $ 486,113
Long-term debt 2,473,874 1,779,137
Due to affiliates 52,568 -
Other liabilities 114,755 132,383
Total liabilities 3,056,598 2,397,633
Shareholders’ equity:
Preferred stock 351 351
Common stock 97,218 102,218
Additional paid-in capital 878,306 882,985
Accumulated other comprehensive income (2,029,720) (2,772,419)
Retained earnings 8,002,521 7,478,813
Treasury stock (1,643,156) (1,205,145)
Total shareholders’ equity 5,305,520 4,486,803
Total liabilities and shareholders’ equity $ 8,362,118 $ 6,884,436
See Notes to Consolidated Financial Statements and accompanying Report of Independent Registered
Public Accounting Firm.
GL 2024 FORM 10-K
Globe Life Inc.
(PARENT COMPANY)
SCHEDULE II. CONDENSED FINANCIAL INFORMATION OF REGISTRANT (continued)
Condensed Statement of Operations
(Dollar amounts in thousands)
Year Ended December 31,
2024 2023 2022
Net investment income $ 38,341 $ 36,237 $ 33,664
Realized gains (losses) 4,158 5,924 (9,643)
Total revenue
42,499 42,161 24,021
General operating expenses 75,387 59,051 59,307
Reimbursements from affiliates (53,136) (59,796) (51,312)
Interest expense 125,023 107,180 97,051
Total expenses
147,274 106,435 105,046
Operating income (loss) before income taxes and equity in earnings of affiliates (104,775) (64,274) (81,025)
Income tax benefit
19,832 10,706 12,426
Net operating loss before equity in earnings of affiliates (84,943) (53,568) (68,599)
Equity in earnings of affiliates, net of tax 1,155,705 1,024,323 962,985
Net income
1,070,762 970,755 894,386
Other comprehensive income (loss):
Attributable to Parent Company 21,326 1,113 75,076
Attributable to affiliates 721,373 16,781 1,369,659
Comprehensive income (loss) $ 1,813,461 $ 988,649 $ 2,339,121
See Notes to Consolidated Financial Statements and accompanying Report of Independent Registered
Public Accounting Firm.
GL 2024 FORM 10-K
Globe Life Inc.
(PARENT COMPANY)
SCHEDULE II. CONDENSED FINANCIAL INFORMATION OF REGISTRANT (continued)
Condensed Statement of Cash Flows
(Dollar amounts in thousands)
Year Ended December 31,
2024 2023 2022
Net income $ 1,070,762 $ 970,755 $ 894,386
Equity in earnings of affiliates (1,155,705) (1,024,323) (962,985)
Cash dividends from subsidiaries 692,690 459,535 407,042
Other, net 55,243 33,846 26,444
Cash provided from operations
662,990 439,813 364,887
Cash provided from (used for) investing activities:
Net decrease (increase) in short-term investments (28,000) 13,996 (15,001)
Investment in subsidiaries (12) - (10,010)
Acquisition of investments (2,850) (3,950) (2,000)
Disposition of investments 1 - -
Loaned money to affiliates (557,016) (479,629) (846,002)
Repayments from affiliates 394,925 505,929 886,002
Additions to properties (19,147) (7,400) -
Cash provided from (used for) investing activities
(212,099) 28,946 12,989
Cash provided from (used for) financing activities:
Repayment of debt - (165,612) (300,000)
Proceeds from issuance of debt 530,000 170,000 400,000
Payment for debt issuance costs (7,253) (757) (5,272)
Net change in commercial paper held less than 90 days (13,878) 32,961 (46,289)
Proceeds from commercial paper with original maturities greater than 90 days 484,726 - -
Repayment of commercial paper with original maturities greater than 90 days (372,011) - -
Issuance of stock 51,756 114,080 111,970
Acquisitions of treasury stock (1,002,109) (511,100) (454,638)
Borrowed money from affiliate 349,000 290,500 22,400
Repayments to affiliates (296,600) (290,500) (22,400)
Payment of dividends (108,755) (107,386) (103,817)
Cash provided from (used for) financing activities
(385,124) (467,814) (398,046)
Net increase (decrease) in cash 65,767 945 (20,170)
Cash balance at beginning of period 1,003 58 20,228
Cash balance at end of period $ 66,770 $ 1,003 $ 58
See Notes to Consolidated Financial Statements and accompanying Report of Independent Registered
Public Accounting Firm.
GL 2024 FORM 10-K
Globe Life Inc.
(PARENT COMPANY)
SCHEDULE II. CONDENSED FINANCIAL INFORMATION OF REGISTRANT (continued)
Notes to Condensed Financial Statements
(Dollar amounts in thousands)
Note A-Dividends from Subsidiaries
Cash dividends paid to Globe Life from the subsidiaries were as follows:
Year Ended December 31,
2024 2023 2022
Dividends from subsidiaries $ 692,690 $ 459,535 $ 407,042
Note B-Supplemental Disclosures of Cash Flow Information
The following table summarizes non-cash transactions, which are not reflected on the Consolidated Statements of Cash Flows:
Year Ended December 31,
2024 2023 2022
Stock-based compensation not involving cash $ 40,118 $ 30,736 $ 35,650
The following table summarizes certain amounts paid (received) during the period:
Year Ended December 31,
2024 2023 2022
Interest paid $ 114,459 $ 104,493 $ 96,903
Income taxes paid (received) (13,126) (10,408) (11,537)
Note C-Preferred Stock
As of December 31, 2024, Globe Life had 351 thousand shares of Cumulative Preferred Stock, Series A, issued and outstanding, of which 280 thousand shares were 6.50% Cumulative Preferred Stock, Series A, and 71 thousand shares were 7.15% Cumulative Preferred Stock, Series A (collectively, the “Series A Preferred Stock”). All issued and outstanding shares of Series A Preferred Stock were held by wholly-owned insurance subsidiaries. In the event of liquidation, the holders of the Series A Preferred Stock at the time outstanding would be entitled to receive a liquidating distribution out of the assets legally available to stockholders in the amount of $1 thousand per share or $351 million in the aggregate, plus any accrued and unpaid dividends, before any distribution is made to holders of Globe Life common stock. Holders of Series A Preferred Stock do not have any voting rights nor have rights to convert such shares into shares of any other class of Globe Life capital stock.
See accompanying Report of Independent Registered Public Accounting Firm.
GL 2024 FORM 10-K
Globe Life Inc.
SCHEDULE IV. REINSURANCE (CONSOLIDATED)
(Dollar Amounts in thousands)
Gross
Amount Ceded
to Other
Companies(1)
Assumed
from Other
Companies Net
Amount Percentage
of Amount
Assumed
to Net
For the Year Ended December 31, 2024
Life insurance in force $ 227,975,584 $ 671,056 $ 1,823,957 $ 229,128,485 0.8
Premiums(2):
Life insurance $ 3,235,744 $ 4,649 $ 17,994 $ 3,249,089 0.6
Health insurance 1,384,080 2,449 23,294 1,404,925 1.7
Total premium $ 4,619,824 $ 7,098 $ 41,288 $ 4,654,014 0.9
For the Year Ended December 31, 2023
Life insurance in force $ 225,286,002 $ 685,289 $ 1,996,223 $ 226,596,936 0.9
Premiums(2):
Life insurance $ 3,109,838 $ 4,597 $ 19,104 $ 3,124,345 0.6
Health insurance 1,281,720 2,720 39,773 1,318,773 3.0
Total premium $ 4,391,558 $ 7,317 $ 58,877 $ 4,443,118 1.3
For the Year Ended December 31, 2022
Life insurance in force $ 222,098,389 $ 662,569 $ 2,172,728 $ 223,608,548 1.0
Premiums(2):
Life insurance $ 2,999,637 $ 4,361 $ 19,009 $ 3,014,285 0.6
Health insurance 1,238,498 3,091 47,010 1,282,417 3.7
Total premium $ 4,238,135 $ 7,452 $ 66,019 $ 4,296,702 1.5
(1)No amounts have been netted against ceded premium.
(2)Excludes policy charges of $12.3 million, $12.9 million, and $13.5 million in each of the years 2024, 2023, and 2022, respectively.
See accompanying Report of Independent Registered Public Accounting Firm.
GL 2024 FORM 10-K